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082523 Friday Staff Report City Manager’s Office 215 E. McKinney St., Denton, TX 76201  (940) 349-8307 OUR CORE VALUES Inclusion  Collaboration  Quality Service  Strategic Focus  Fiscal Responsibility MEMORANDUM DATE: August 25, 2023 TO: The Honorable Mayor Hudspeth and Council Members FROM: Sara Hensley, City Manager SUBJECT: Friday Staff Report Upcoming Meetings A. Public Utilities Board on Monday, August 28, 2023, at 9:00 a.m. in the City Council Work Session Room. B. Development Code Review Committee on Monday, August 28, 2023, at 10:00 a.m. at the Development Service Center. C. Cancelled - Zoning Board of Adjustment on Monday, August 28, 2023, at 5:30 p.m. at the Development Service Center. Please check the City of Denton website for final meeting dates and times, as information is subject to change after the Friday Report is published. General Information & Status Updates A. Short-Term Rental Town Halls and Online Survey – On Aug. 17, an in-person Town Hall regarding short-term rentals was held at the Development Services Center. Of the 23 attendees, 14 signed in as residents, one as a short-term rental owner, and eight as both. Additionally, a virtual Town Hall was conducted via Zoom on Monday, August 21 with 25 individuals registering in advance. During the Town Hall presentations, attendees were encouraged to complete an online Short-Term Rental survey, which includes questions related to short-term rentals and potential code amendments. The survey is available through Discuss Denton and will remain open until Friday, September 8, 2023. Once the online survey closes, community feedback will be shared with the Development Code Review Committee (DCRC). Based on the input received, staff will work with the DCRC to revise the proposed code amendments and prepare a draft to forward to the Planning and Zoning Commission and City Council for consideration during public hearings. Community members will be notified of the public hearings in advance and will have the opportunity to provide additional comments and ask questions prior to the finalization of the Code amendments. Staff contact: Angie Manglaris, Development Services B. 2023 Fan Giveaway – During the 2023 Fan Giveaway more than 1,150 fans were distributed to the Denton Municipal Electric customers through events, direct distribution and pick up at the Environmental Services and Sustainability office. Office pick-ups provided opportunities to engage in conversations regarding energy efficiency and share tips to reduce consumption and bills. The fan giveaway is included in the proposed GreenSense updates that will be considered by the City Council. Fan registration is closed for this year, however outstanding pre-registered customers will still be provided with a fan. Staff contact: Michael Gange, Environmental Services & Sustainability. C. Utility Disconnections for Non-Payment - In accordance with City Ordinance Sec. 26- 8(e)(2)(b), Customer Service suspended interruptions of utility services from July 1, 2023, through August 8, 2023, due to extreme weather conditions. Sec. 26-8 (e)(2)(b) (2) Disconnection during extreme weather. Utility Services will not be disconnected for nonpayment when on the day of disconnection: (a) The National Weather Service (NWS) has forecasted the day’s temperatures to fall below thirty-two (32) degrees Fahrenheit. (b) The NWS has forecasted the day’s high temperatures to be at or above one hundred (100) degrees Fahrenheit or a heat advisory has been issued for Denton County. Service interruptions resumed on August 9, 2023, and will continue, pending any changes in weather conditions. Short-term payment assistance is available in the form of agency referrals and payment arrangements. For long-term needs, Customer Service offers services that exempt customers from receiving late fees such as budget billing or Pay As You Go prepaid utilities, which are fee and deposit exempt. It is the goal of Customer Service to provide customers with payment resources to help them best meet their situational needs Any customer having trouble paying their monthly utility bill should contact Customer Service at 940-349-8700 or customer.service@cityofdenton.com with questions before the interruption of service. Staff contact: Christa Foster, Customer Service 2 D. Annual Achievement of Excellence in Procurement Award - The City of Denton Procurement Department was awarded the prestigious 2023 Annual Achievement of Excellence in Procurement® (AEP) from the National Procurement Institute, Inc. (NPI). The Procurement Department was among 194 agencies in the United States and Canada and one of only 67 cities to receive the award. The AEP Award is earned by agencies that demonstrate a commitment to procurement excellence. The NPI promotes the achievement of excellence in governmental and institutional procurement through education, certification, professional development, and networking of its membership. The award recognizes organizations that obtain high scores on standardized criteria that measure innovation, professionalism, e-procurement, productivity, and leadership attributes in the procurement profession. The City’s Procurement staff of 17 work diligently to ensure fiscal responsibility in awarding contract bids and safeguard the integrity and compliance of procurement operations, all while providing quality customer service. The Department has earned the AEP award every year since 1998. Staff contact: Laura Behrens, Finance E. 2023 Pedestrian & Cyclist Safety Public Survey Internal Audit Results - To promote transparency and enable public analysis, the City Auditor’s Office released the responses received from the 2023 public survey regarding pedestrian and cyclist safety. This information was collected as part of the Internal Audit of Pedestrian & Cyclist Safety, which is scheduled to be released in September 2023 and will include the City Auditor’s Office’s analysis of the collected data. The full responses can be downloaded from the City’s Internal Audit Analysis Reports webpage. Staff contact: Madison Rorschach, Internal Audit Responses to Council Member Requests for Information A. Crosswalk Evaluation at McKinney and Jannie Streets – On Aug. 17, Mayor Hudspeth forwarded a resident’s email inquiring about the possibility of a crosswalk across the intersection of McKinney and Jannie Streets. After evaluating current conditions at this intersection, staff determined that it does not currently meet signal warrants. Additionally, the intersection is not a safe crossing location and pedestrians in the area are encouraged to use the crosswalk located at the signalized intersection of McKinney and Audra/Woodrow Lane. Staff contact: Brett Bourgeois, Engineering B. Bronco Way and Windsor Drive Turning Signage – On Aug. 17, Council Member Meltzer forwarded a resident’s email requesting information on installing turning signage on Bronco Way and Windsor Drive. The project is in the schematic design phase and will include the north/south Westgate configuration to the Bronco Way connection as a protected hooded left-hand turn with no right-turn capability. Staff will evaluate the use of additional turning signage on east/west Westgate Drive as a part of the design phase. Staff contact: Trevor Crain, Capital Projects C. Water Utilities Response – On Aug. 21, Mayor Hudspeth inquired about a water repair at the North Texas Fair and Rodeo. Staff were dispatched to the fairgrounds on Friday, Aug. 18, due to a report of low water pressure. Water Utilities’ on-call crew responded to diagnose and resolve the issue, but upon arrival, fair staff advised they found a closed valve on their private side. The fair staff opened it and that resolved the pressure issue. Staff contact: Stephen Gay, Water Utilities 3 D. Bocce Court – On August 23, Council Member Holland inquired about a bocce court zoning delay for Robson Ranch. Staff advised Robson Communities participated in a Pre- Application Conference in April 2023 related to bocce courts. Most recently, Robson Communities has discussed potential pickleball courts, however, no formal application has been received from Robson Communities for action on either proposal. Staff contact: Scott McDonald, Development Services E. Monthly Mobility Report – During the Aug. 23, 2023, Mobility Committee meeting, Innovative Transportation Solutions (ITS) provided a monthly report that included the overview of several major regional Texas Department of Transportation (TxDOT) projects. See the attached ITS Monthly Mobility Report for review. Staff contact: Rebecca Diviney, Capital Projects/Engineering/Public Works Information from the City Manager From time to time, I would like to share with the City Council local government-related resources that I find insightful, interesting, or timely. These may be studies, periodicals, reports, or web resources. My intent is to make the Council aware of broad perspectives and discussions and not to suggest any policy or service change. – Sara A. Denton ranked 4th best real estate market in the nation Upcoming Community Events and Public Meetings A. SEDAP Community Visioning Workshop – Hosted on Aug. 26, from 10 a.m. to 2 p.m. at the American Legion Hall (629 Lakey St.), this Southeast Denton Area Plan (SEDAP) Community Visioning Workshop will include hands-on activities designing an ideal street, discussing housing needs, sharing a vision for parks, and providing ideas for the community. A 30-minute presentation will be provided twice, at 10:15 a.m. and 11:45 a.m., so participants can come and go as needed. Staff contacts: Julie Wyatt and Mia Hines, Development Services B. Review Your Interview Skills for Teens – Whether interviewing for a job, a college scholarship, or the academic decathlon, it is always a good idea to brush up on interview skills. Learn do’s, don’ts, and what an interviewer is really looking for with tricky questions. This event will be held at the South Branch Library (3228 Teasley Ln.) on Saturday, Aug. 26, from 3-4 p.m. Staff contact: Jennifer Bekker, Libraries C. Smart Cycling for Active Adults – The Denton Senior Center (509 N. Bell Ave.) is providing a class on Smart Cycling for adults over 50 on Wednesday, Aug. 30. The class is for individuals new to bicycling and those wanting to refresh their skills while remaining attentive to the needs of older cyclists. This class reviews the importance of choosing an appropriate bike, cycling with reduced flexibility, and accommodating slightly slower reaction times as part of safe biking practices. Staff contact: Nicole Brasher, Parks and Recreation D. Aquatic Master Plan Community Meeting – Join us on Thursday, Aug. 31, at 6 p.m. to provide feedback on the Aquatic Master Plan and help shape the future of Denton aquatics. The hybrid meeting will be held at Development Services (401 N. Elm St.) and online. 4 More details and Zoom registration can be found online. Staff contact: Monica Martin, Parks and Recreation E. Active Adult Fantasy Football Draft Party – Join others at the Senior Center (509 N. Bell Ave.) on Sept. 1 from 2 to 4 p.m. for a Fantasy Football Draft Party. NFL Maxout is offered by Gridiron Games and offers a unique twist on Fantasy Football. The cost to participate is $10 for residents and $15 for non-residents. For more information please follow this link. Staff contact: Jane Riddle, Parks and Recreation F. Kayaking for Active Adults – Join an American Canoe Association assessed instructor and American Red Cross-certified lifeguard staff on a kayak adventure for adults over the age of 50 on Saturday, Sept. 8. The excursion will begin at Denia Recreation Center (1001 Parvin St.) at 10 a.m. and will return at 2 p.m. The kayak adventure will tour a beautiful local waterway and is open to all skill levels. Paddling experience is not required. Participants should bring a sack lunch and a bottle of water for an adventure picnic. The fee ($25 for Denton residents and $30 for non-residents) includes transportation, instructors, guides, the use of sit-on-top kayaks, paddles, life jackets, and kayak instruction. Registration is available at this link. Staff contact: Carin Zeman, Parks and Recreation G. Food N Fun Friday – Join Parks and Recreation staff at the North Lakes Driving Range (2009 W. Windsor Dr.) on Sept. 8 from 5 to 9 p.m. for $20 unlimited golf balls, a free-to- join closest to the pin challenge, and food for sale from food trucks including King & Queen New Orleans Sneauxballs. No registration is required, just ask the front desk for the Food N Fun special to purchase and participate! Staff contact: Kelsey Stuart, Parks and Recreation H. Adapted Rec Dance – Get your groove on with friends at the North Lakes Recreation Center (2001 W. Windsor Dr.) on Friday, Sept. 8, from 7 to 9 p.m. and enjoy music, a dance floor, a photo booth, and fellowship. This month’s theme is “A’Hoy Matey!” The event is $5 per person, and open to individuals 16 and up with disabilities. Registration is available at this link. Staff contact: Mia Macy, Parks and Recreation I. Kids Rock, Parent’s Night Out – Kids Rock, Parent’s Night Out returns for another school year! Each month, Kids Rock provides unique and entertaining fun for kids, while providing their parents or guardians a chance to enjoy a night out. The next Kids Rock event will be Friday, Sept. 8 from 7 to 11 p.m. at the Denton Civic Center (321 E. McKinney St.). Experienced staff plan each month around a unique theme, then create play stations that include games and activities, mini-sports tournaments, unique inflatable fun, ping-pong, video games on a large screen, and a DJ with dance contests! Two slices of pizza and a drink are included for attendees. Preregistration is required and can be completed online at this link. The cost is $25 per child and $30 for non-residents. Staff contact: Jodi McClaren, Parks and Recreation J. Dementia Friendly Nature Walk – Join Dementia Friendly Denton County as an Elm Fork Chapter Master Naturalist guides a tour of the Civic Center Garden (321 E. McKinney St) to provide exercise, education, and sensory stimulation for people living with dementia and their caretakers. The next walk will take place Sept. 13 at 10 a.m. with participants meeting at the South Side of the Civic Center. The event is free to attend, and registration is available at this link. Staff contact: Carin Zeman, Parks and Recreation 5 K. Step Aerobics Retro Class – Join Parks and Recreation aerobics instructors for a special, one-time only Retro Step Aerobics Class. The class is free and open to the public and will take place at North Lakes Recreation Center (2001 W. Windsor Dr.) on Wednesday, Sept. 13 beginning at 9:45 A.M. Staff contact: Carin Zeman, Parks and Recreation. L. Tea with “the Tea”, Ages 50+ – Wear your favorite colorful hat and join us to sip and spill “the Tea” on Friday, Sept.15 at the American Legion Hall Senior Center (629 Lakey St.). We will discuss interesting topics such as recipes, decorating, books, and more. The cost to attend is $10 per person, and registration is available at this link. Staff contact: Yvonne Kendricks, Parks and Recreation. M. Hispanic Heritage Month Celebration – Celebrate Cultural Diversity in Denton at the MLK Jr., Recreation Center (1300 Wilson St.) on Saturday, Sept. 16 from 10 a.m. to noon! National Hispanic Heritage Month runs from the middle of September through the middle of October. This event will celebrate the vibrant history of our Hispanic community, discuss its heritage, and the contributions made by Denton residents from Mexico, Spain, the Caribbean, and South and Central America. Featuring keynote speaker Dr. Rudy Rodriguez, trustee of Denton ISD since 2008, the event will also feature entertainment and activities for children. The event is free to attend. Additional information is available at this link. Staff Contact: Yosselin Mueller, Parks and Recreation. N. National Dance Day Party – Celebrate National Dance Day on Sept. 16 at North Lakes Recreation Center (2001 W. Windsor Dr.). The festivities begin at 1 p.m. with BollyX, followed by Zumba at 1:40 p.m., Les Mills BODYJAM at 2:30, and a Freestyle Dance Party beginning at 3:15 p.m. This is the perfect opportunity to see how dance can feature in an active lifestyle. The event is free to attend. Registration and additional information is available at this link. Staff Contact: Carin Zeman, Parks and Recreation O. Kayaking, Ages 8+ – Join American Canoe Association assessed instructors and American Red Cross lifeguard certified staff on a kayak adventure that tours a beautiful local waterway. Our next kayaking event will explore Pecan Creek and takes place on Saturday, Sept. 16, and includes both Single and Tandem kayaking options. The excursion begins at 9:00 a.m. and ends at 3:00 p.m. Participants are asked to bring a sack lunch and a bottle of water and meet at the Denton Civic Center (321 E. McKinney St.) lobby in the morning to begin their adventure. The cost for a single kayak is $25 and the cost of a shared, tandem one is $50. Children under age 11 must share a Kayak with an adult. Registration is available at this link. Staff contact: Carin Zeman, Parks and Recreation Attachments A. August 2023 Transportation/Mobility Project Status Report ..............................................8 Informal Staff Reports A. 2023-056 Atmos Rate Filing & Approval .........................................................................28 B. 2023-057 Fleet Purchase Under Delegation of Authority .................................................35 C. 2023-058 Summary of Senate Bill 2 ..................................................................................38 6 Council Information A. Council Requests for Information .....................................................................................99 B. Public Meeting Calendar..................................................................................................101 C. September 12, 2023, Budget Workshop Draft Agenda ...................................................105 D. Future Work Session Items .............................................................................................107 E. Street Closure Report ......................................................................................................108 7 City of Denton Transportation Update Prepared by: August 2023 1 City of Denton Transportation/Mobility Project Status Report Prepared by ITS August 2023 PROJECTS • Project Summary ............................................ page 2 • I-35 North ....................................................... page 3 • I-35/35E/35W Merge...................................... page 5 • I-35E/Mayhill ................................................. page 7 • I-35W Frontage Roads ................................... page 9 • US 380/US 377 ............................................. page 10 • Loop 288 West Frontage Roads ................... page 12 • Loop 288 East-US 380 Connector ................ page 13 • Bonnie Brae Segment 7 ................................ page 14 • FM 1515 ....................................................... page 15 • FM 1173 ....................................................... page 16 • Outer Loop.................................................... page 17 • Elm and Locust ............................................. page 18 • Glossary of Acronyms .................................. page 19 • TxDOT Funding Categories ......................... page 20 8 City of Denton Transportation Update Prepared by: August 2023 2 PROJECT SUMMARY PROJECT LET DATE CONTRACTOR/ ENGINEER CONSTRUCTION COST I-35 North Various Stantec $741,730,191 I-35/35E/35W Merge 04-2024 AECOM/Stantec $466,855,040 I-35E/Mayhill 06-2025 LTRA $116,710,499 I-35W Frontage Roads 09-2028 WSP $341,592,896 US 380/US 377 06-04-2020 Ragle Construction $21,269,537 Loop 288 West Frontage Roads 09-2028 CP&Y $220,776,703 Loop 288 East-US 380 Connector * Westwood $922,000,000 Bonnie Brae Segment 7 * Westwood * FM 1515 * LTRA $34,348,574 FM 1173 * Halff $88,018,110 Outer Loop * LJA $1,547,212,128 Elm and Locust * TxDOT * TOTAL $4,500,513,678 9 City of Denton Transportation Update Prepared by: August 2023 3 Current Activity: • PS&E: The 95% PS&E plan set for the -074 CSJ has been reviewed, and comments have been returned to the consultant. The 95% PS&E plan set for -081 plan set was submitted for review in June 2023. The 95% plan set for -084 plan set is expected in August 2023. • ROW: All parcels are in possession. I-35 North CSJ: 0195-02-074; 0195-02-076; 0195-02-081; 0195-01-116; 0195-02-084 Schematic Approval: January 31, 2019 Limits: From US 77 to FM 3002 (Cooke County line) Environmental Approval: October 7, 2019 Length: 12.4 miles Description: Reconstruct and widen 4- to 6-lane rural freeway with ramp modifications and reconstruct 4- to 4/6-lane frontage roads ROW Acquisition Complete: July 2023 Est. Construction Cost: $741,730,191 -074: $428,458,762 -081: $164,033,341 -116: $78,520,431 -084: $70,717,657 Utility Relocations Complete: -074: October 2024 -081: March 2024 -116: June 2024 -084: June 2024 Funding: $792,295,573 CAT 4: $198,920,712 CAT 11: $15,408,384 CAT 12: $577,966,477 100% Plans: -074: December 2023 -081: January 2024 -116: March 2024 -084: March 2024 Firm & Key Contact: Stantec Ready to Let Date: -074: October 2024 -081: March 2024 -116: June 2024 -084: June 2024 TxDOT PM: Dawit Abraham Let Date: -074: July 2026 -081: December 2024 -116: December 2027 -084: December 2027 10 City of Denton Transportation Update Prepared by: August 2023 4 • Utilities: Status of utilities in conflict is listed below. o AT&T: Permit pending. Agreement expected in September 2023. Anticipate start of construction in October 2023. o Brazos Electric: Permit approved. Utility agreement pending. o Bolivar Water: Pending design. o CenturyLink (Bright Speed/Level 3): Design reviewed; plans being revised. Agreement pending. o CoServ Electric: Permit approved. Agreement expected in September 2023. o Frontier: Permit approved. Anticipate utility agreement in September 2023. o MCI/Verizon: Install complete. Splicing and removals ongoing. o Sanger Electric: Permit approved. Utility agreement executed. Anticipate completion in February 2024. o Sanger Water/Wastewater: Permit pending. Utility agreement pending. o Suddenlink: Permit approved. Anticipate agreement in August 2023. Dependent upon CoServ. o Upper Trinity Water: Design finalized pending easement acquisition. o Zayo: Permit pending. Agreement pending. 11 City of Denton Transportation Update Prepared by: August 2023 5 Current Activity: • PS&E: The 95% plan set is underway and expected to be submitted for review in August 2023. • City of Denton has submitted to TxDOT the wall aesthetics package. • Utilities: Utilities that are clear of construction: Brazos Valley Electric and DME Transmission. • Status of utilities in conflict is noted below. o AT&T: Permits pending. Utility agreement expected in September 2023. Construction expected to begin in September 2023. Anticipate clearance in November 2023. o Atmos Distribution: Permits approved. Agreements pending; expected in August 2023. I-35/35E/35W Merge CSJ: 0195-03-099 (N Texas Blvd to I-35E/W) 0195-03-090 (I-35E/W to US 380) 0195-03-087 (US 380 to US 77) Schematic Approval: -090: August 2011 -087: January 31, 2019 Limits: From North Texas Blvd to US 77 north of Denton Environmental Approval: -090: June 2017 -087: October 7, 2019 Length: 5.073 miles ROW Acquisition Completed: May 2022 Description: Reconstruct interchange and existing frontage roads; reconstruct and widen to 6/8-lane rural freeway with ramp modifications Utility Relocations Complete: April 2024 Est. Construction Cost: $466,855,040 -099: $85,215,324 -090: $161,782,386 -087: $219,857,330 City of Denton Utility Relocations Complete: April 2024 Funding: $431,191,639 CAT 1: $1,806,333 CAT 2: $35,008,319 CAT 4: $75,042,004 CAT 12: $319,334,983 100% Plans: December 2023 Firm & Key Contact: AECOM (-090); Stantec (-087) Ready to Let Date: April 2024 TxDOT PM: Dawit Abraham Let Date: April 2024 12 City of Denton Transportation Update Prepared by: August 2023 6 o Atmos Transmission: Permits approved. Agreements pending; expected in August 2023. o Charter-Spectrum: Permits pending. Utility agreements pending. Install dependent upon joint duct installation. o City of Denton Water/Wastewater: Three agreements pending. Construction expected to begin in August 2023. Anticipate completion in April 2024. o CoServe Electric: Anticipate completion in October 2023 and clearance in December 2023 with telecoms removal from poles. o CoServ Distribution: Construction underway. Anticipate completion in October 2023. o DME Distribution: Permits approved. Utility agreement executed. Relocations underway; anticipate clearance in November 2023. o Fiberlight: Permit approved. Agreement pending. Install dependent upon joint duct installation. o Frontier: Permit approved. Agreement pending. Install dependent upon joint duct installation. o Level 3/Lumen: Permit approved. Utility agreement pending. Anticipate start of construction in mid-September 2023. Anticipate completion in December 2023. o UPN: Permits approved. Utility agreement pending. o Verizon Business/MCI: Utility agreement pending. Design finalizing with joint duct. Install dependent upon joint duct installation. o Zayo: Pending permit. Pending agreement. Permit pending. Install dependent upon joint duct installation. 13 City of Denton Transportation Update Prepared by: August 2023 7 Current Activity: • Utilities: Utilities currently clear of construction: CoServ Gas, NGG, and Oncor. o Astound (formerly Grande): Agreement pending. Construction pending Frontier duct install. o Atmos Gas: Agreement pending; expected in August 2023. Construction timeframe estimated at 4-5 months. o AT&T: Agreement pending. Construction schedule pending; dependent upon Frontier completing joint duct. o CenturyLink/Lumen: Pending permit for joint duct bank and agreement. Agreement pending. Construction schedule pending. o Charter/Spectrum: Pending design. Utility agreement pending. Construction dependent upon Frontier completing joint duct and DME pole installation. o City of Denton Water: Construction underway. Anticipate completion in October 2023. o City of Denton Wastewater: Construction underway. Anticipate completion in October 2023. o DME: Agreement pending. Anticipate completion in January 2024. o DISD: Design expected in August 2023. Agreement pending. Anticipate completion in October 2023. I-35E/Mayhill CSJ: 0196-01-109 Schematic Approval: February 2011 Limits: I-35E intersection with Mayhill from Pockrus Page Rd to Loop 288 Environmental Clearance: January 31, 2012 Length: 1.912 miles ROW Acquisition Completed: November 2022 Description: Reconstruct interchange at Mayhill and I-35E and existing 4-lane frontage roads Utility Relocations Complete: February 2024 Est. Construction Cost: $116,710,499 City of Denton Utility Relocations Complete: October 2023 Funding: CAT 2: $95,229,619 100% Plans: December 2022 Firm & Key Contact: LTRA, Tyler Martin Ready to Let Date: February 2024 TxDOT Project Manager: Don Vo Let Date: June 2025 14 City of Denton Transportation Update Prepared by: August 2023 8 o Frontier: Agreement pending. Construction expected to start in September 2023. Anticipate completion in November 2023. o Level 3: Agreement pending. Construction schedule pending, dependent upon Frontier joint duct bank. o NGG: Clear o Unite Private Networks: Currently clear of project. o Verizon/MCI: Finalizing design for permit. Pending utility agreement. Construction dependent upon Frontier completing joint duct. o Zayo: Pending agreement. Construction dependent upon Frontier completing joint duct. 15 City of Denton Transportation Update Prepared by: August 2023 9 Current Activity: • PS&E: Consultant is addressing 60% plan review comments and working toward the 95% plan set. • ROW: There are 63 parcels to acquire. There are 2 parcels in appraisal, 44 parcels in ED, and 17 parcels acquired. • Utilities: SUE work has been completed and provided to consultants. The plans adequate have been distributed to utilities. I-35W Frontage Roads CSJ: 0081-13-071 Schematic Approval: March 20, 2020 Limits: From 0.7 miles south of FM 407 to FM 2449 Environmental Clearance: June 30, 2020 Length: 5.57 miles Project Description: Construct frontage roads ROW Acquisition Complete: September 2023 Est. Construction Cost: $341,592,896 Utility Relocations Complete: December 2024 Funding: * 100% Plans: December 2023 Firm: WSP Ready to Let Date: December 2024 TxDOT Contact: Gutema Gebriel Let Date: September 2028 16 City of Denton Transportation Update Prepared by: August 2023 10 Current Activity: • Construction: Project was awarded to Ragle Construction, Inc. with a low bid of $21,269,536.66, at 33.15% over the engineer’s estimate. There are 800 working days and 39 months of barricades. See attached TxDOT construction report. • City Participation: TxDOT provided an AFA to the City of Denton for the 10-foot sidewalk component. This AFA notes a fixed cost of $95,000.00 to be transferred to TxDOT and voids the original agreement executed in September 2017. City council approved same on September 1, 2020. Denton County transmitted an ICA to the City of Denton for its $55,000.00 participation in this fixed cost contribution. City council approved same on September 1, 2020. Denton County approved ICA on September 15, 2020. US 380/US 377 CSJ: 0135-10-057 Schematic Approval: April 24, 2017 Limits: from Loop 288 to US 377 Environmental Clearance: June 29, 2018 Length: 4.27 miles Description: Widen existing roadway from 4/6-lane to 6- lane divided with intersection improvements ROW Acquisition Complete: March 2020 Construction Cost: $21,269,537 Utility Relocations Complete: September 2020 Funding: $20,616,014 CAT 2: $17,839,014 CAT 3 (local): $95,000 CAT 5: $665,000 CAT 11: $2,017,000 100% Plans: January 2020 Engineering Firm: White Oak and TranSystems Let Date: June 4, 2020 TxDOT Project Manager: Branden Barnett Construction Completion: January 2024 Denton/Collin County Line 17 City of Denton Transportation Update Prepared by: August 2023 11 TxDOT Monthly Project Report Date of report: August 7, 2023 Report prepared by: Branden Barnett Project: CM 2020 (806) Control: 0135-10-057 Highway: US 377/US 380 Limits: From: Loop 288 To: US 377/US 380 Intersection Contractor: Ragle Construction, Inc. TxDOT Project manager: Branden Barnett Phone: (214) 392-1791 Contractor’s Project Manager: Nagesh Kumar Contractor’s Superintendent: Johnny Pererria Date Work Began: January 15, 2021 Anticipated Completion Date: January 2024 Current Activities: Current activities include: Constructing rail on westbound US 377. Construction curb for median between Loop 288 and Trinity Road. Pouring median rip rap from Mayhill to Trinity Road. Narrative description of last month’s activities: Constructing sidewalk between Riverside Drive and the Greenbelt. Forming rail on westbound US 377. Constructing curb for median between Loop 288 and Trinity Road. Narrative description of activities planned for next month: Phase II construction (westbound construction: drainage, sidewalk, bridge rail removal, etc.). Replace existing bridge rail. Move project into Phase III between Riverside Drive and Fishtrap Road. Traffic issues: Various daily lane closures. Plans for changes in traffic patterns: Moved project into Phase III traffic pattern between Loop 288 and Trinity Road. Project is in Phase II traffic pattern, both eastbound and westbound from Trinity Road to Fishtrap Road. Item(s) of work currently controlling project completion: Phase II from Trinity Road to Fishtrap Road and pedestrian rail in Phase 1. Other items of significance: None 18 City of Denton Transportation Update Prepared by: August 2023 12 Current Status: • Environmental: CP&Y is coordinating environmental re-eval for John Paine Road extension. • ROW: For RCSJ 2250-02-023, there are 19 parcels to acquire. There are: 4 parcels in ED and 15 parcels in possession. • For RCSJ 2250-02-024, there are 20 parcels to acquire. There are: 15 parcels in ED and 5 parcels in possession. • PS&E: CP&Y continued coordinating with TxDOT, City of Denton, and ITS for Underwood connection, US 380 lane width/sidewalks, end construction limits, culvert realignment, and driveways. • CP&Y continued drainage design. • CP&Y continued bridge design for 60% PS&E plan submittal. • CP&Y continued efforts toward 60% PS&E plan set and submitted to TxDOT for review on July 29, 2023. • TCP Concept Conference held on July 17, 2023. • Jacobs updated Exhibit A and resubmitted on July 14, 2023. • Utilities: CP&Y received additional utility records on May 23, 2023 and updated Utility Conflict Matrix. CP&Y drafted NORA letters. • Construction: The northbound frontage road will be constructed first. Loop 288 West Frontage Roads CSJ: 2250-00-013 (from I-35 to US 380) 2250-00-014 (from US 380 to I-35W) Schematic Approval: March 20, 2020 Limits: From I-35 to I-35W Environmental Clearance: September 28, 2020 Length: 9.0 miles Description: Construct frontage roads ROW Acquisition Complete: December 2024 Estimated Construction Cost: $220,776,703 -013: $91,050,175 -014: $129,726,528 Utility Relocations Complete: April 2026 Funding: $3,000,000 CAT 3 $1,000,000 CAT 7 100% Plans: February 2024 Firm & Key Contact: CP&Y, Tom Cochill & Jacob Roberts Ready to Let Date: April 2026 TxDOT Project Manager: Gutema Gebriel Let Date: September 2028 19 City of Denton Transportation Update Prepared by: August 2023 13 Current Activity: • PS&E: Awaiting decision on feasibility study for eastern connection for any additional survey. • Westwood is reviewing preliminary drainage report for submittal to TxDOT. • Westwood continues to refine schematic and feasibility alignment. • Westwood met with TxDOT and City of Denton on August 3, 2023. Discussion included lowering Loop 288 grade between proposed Bonnie Brae and US 77 to reduce ROW and need for retaining walls; adding ramps to improve access east of Sherman Drive and to westbound Loop 288 at Kings Row; and reviewing the potential for an additional alternate connector alignment closer to US 380. • Public meeting was held on July 27, 2023, in Denton. Public meeting and project materials are available at: www.keepitmovingdallas.com/projects/state-highways/SL288East. There were 106 in attendance. Comments received are generally related to transit access, noise walls, ramp locations. Comment period closed on August 11, 2023. • Anticipate a second public meeting to be held in 4-6 months. Loop 288 East-US 380 Connector CSJ: 2250-02-025; 0135-10-066 Schematic Approval: July 2024 Limits: from IH-35 to US 380 east of Riverside Drive Environmental Clearance: July 2025 Length: 8 miles Project Description: Construct Loop 288 frontage roads and grade separations and an improved connector to US 380 ROW Acquisition Completion: * Estimated Const. Cost: $922M Utility Relocations Completion: * Funding: * 100% Plans: * Firm & Key Contact: Westwood, Mark Schluter, Mark Zoellner Ready to Let Date: * TxDOT PM: Nelson Underwood Let Date: * 20 City of Denton Transportation Update Prepared by: August 2023 14 Current Activity: • PS&E: The segment between US 77 and Loop 288 has been added to Loop 288 East contract with Westwood. Bonnie Brae Segment 7 CSJ: * Schematic Approval: * Limits: From US 77 to Loop 288 Environmental Clearance: * Length: 0.2 miles ROW Acquisition Complete: * Description: Extension of Bonnie Brae north of US 77 Utility Relocations Complete: * Est. Construction Cost: * 100% Plans: * Funding: * Ready to Let Date: * Firm & Key Contact: Westwood, Mark Schluter, Mark Zoellner Let Date: * TxDOT Project Manager: Nelson Underwood Construction Start: * 21 City of Denton Transportation Update Prepared by: August 2023 15 Current Activity: • ROW: All parcels are in possession. • PS&E: Comment resolution meeting with TxDOT held on July 12, 2023. LTRA is working toward development of 95% plans. LTRA has incorporated KCS 60% comments and is updating sheets for 95% plan submittal, anticipated in August 2023. • On July 12, 2023, KCS held comment resolution meeting with TxDOT to resolve 60% comments. • Utilities: Utilities in conflict are: AT&T, Atmos, Charter/Spectrum, City of Denton Water/Wastewater, DME, Frontier, Level 3, Oncor, Targa North Texas, and Verizon Business. Utilities are currently in design, expected in October or November of 2023. FM 1515 CSJ: 1951-01-011 Schematic Re-approval: October 13, 2021 Limits: From Bonnie Brae to Masch Branch Road Environmental Approval: August 4, 2020 Length: 2.096 miles Environmental Re-eval: March 15, 2022 Description: Widen existing 2-lane rural section to a six-lane divided urban roadway ROW Acquisition Complete: July 2023 Est. Construction Cost: $34,348,574 Utility Relocations Complete: June 2025 Funding: $500,000 CAT 7 100% Plans: May 2024 Firm & Key Contact: LTRA, Tyler Martin Ready to Let Date: June 2025 TxDOT Project Manager: Don Vo Let Date: * 22 City of Denton Transportation Update Prepared by: August 2023 16 Current Activity: • ROW: For RCSJ: 1059-01-048, there are 41 parcels to acquire. There are: 6 parcels in ED and 35 parcels in possession. For RCSJ: 1059-02-003, there are 6 parcels to acquire. All parcels are in possession. • PS&E: Retaining wall and bridge geotechnical report is underway. • Halff submitted Exhibit A on May 16, 2023. • Halff received comments from TxDOT on 30% plan set and began addressing review comments. Halff and TxDOT held 30% comment resolution meeting on July 14, 2023. Halff is continuing to address 30% plan comments. • Halff has begun efforts on the 60% PS&E plan set. FM 1173 CSJ: 1059-01-047; 1059-02-002 Schematic Approval: March 20, 2020 Limits: From I-35E to FM 156 Environmental Clearance: August 26, 2021 Length: 3.613 miles Description: Widen and realign to 4/6-lane divided urban road ROW Acquisition Complete: August 2023 Est. Construction Cost: $88,018,110 -047: $46,590,134 -002: $41,427,976 Utility Relocations Complete: February 2025 Funding: * 100% Plans: March 2024 Firm & Key Contact: Halff Associates, Aimee Jones Ready to Let Date: February 2025 TxDOT PM: Kwan Lam Let Date: * 23 City of Denton Transportation Update Prepared by: August 2023 17 Current Activity: • Design: LJA continues developing preliminary route studies and refining high-risk constraint analysis. LJA continues identifying planned developments and constraints within study area. LJA is analyzing each route according to evaluation criteria and comparing future alternatives. • LJA is coordinating with NCTCOG, TxDOT, USACE, and other agencies. • The following stakeholder coordination meetings were held: o City of Celina on July 10, 2023, to discuss alignments, o Centurion Developers on July 11, 2023, o ULR Developers to discuss development on July 21, 2023, and o City of Aubrey to discuss alignment updates on July 27, 2023. • LJA completed and submitted IAJR methodology and assumptions. • Utilities: LJA continues evaluating transmission level utilities within study area. • Other: Project website is available: www.DentonCountyOuterLoop.com. Closed the site for public input on June 22, 2023. LJA is analyzing and organizing information and comments from the public. Outer Loop CSJ: 0918-46-341 Schematic Approval: December 2025 Limits: From I-35 to the DNT at the Denton County Line Environmental Clearance: Summer 2026 Length: 23 miles ROW Acquisition Complete: * Description: Construct a six-lane controlled access freeway with continuous frontage roads Utility Relocations Complete: * Est. Construction Cost: $1,547,212,128 100% Plans: * Funding: * Ready to Let Date: * Firm & Key Contact: LJA, Tony Kimmey Let Date: * TxDOT Project Manager: Liang Ding Construction Start: * 24 City of Denton Transportation Update Prepared by: August 2023 18 Current Activity: • Quantities and typical sections for proposed rehabilitation have been prepared. • TxDOT District approved pavement section. Plans have been prepared. City of Denton has reviewed and approved. • TxDOT anticipates completion of plan set by end of 2023. • City of Denton will need to approve a resolution to accompany transfer memo. City of Denton to meet with TxDOT to discuss process. • Anticipate receipt of survey on August 18, 2023. TxDOT to provide same to City of Denton. • Transfer memo is being reviewed by TxDOT administration in Austin for approval. Elm and Locust 25 City of Denton Transportation Update Prepared by: August 2023 19 • AADT – Annual Average Daily Traffic • AFA – Advanced Funding Agreement • ARPA – Archeological Resources Protection Act • CE – Categorical Exclusion (environmental clearance process for projects that do not involve significant environmental impacts) • CLOMR – (FEMA’s) Conditional Letter of Map Revision • Conformity – Federal requirement in nonattainment areas to conduct air quality analysis on projects, programs, and policies identified in transportation plans, transportation improvement programs, federally funded projects, or projects requiring federal approval • CSJ – (TxDOT’s) Control Section Job Number • DCC – Design Concept Conference • EA – Environmental Assessment • ED – Eminent Domain • EIS – Environmental Impact Statement • EPIC – Environmental Permits, Issues, and Commitments • ESAL – Equivalent Single Axle Load (TxDOT design calculation) • FONSI – Finding of No Significant Impact • IAJR – Interstate Access Justification Request • ICA – Interlocal Cooperative Agreement • IFP – Initial Financial Plan • Let – Official date of receipt and opening of bids • MAPO – Meeting with Affected Property Owners • MPO – Metropolitan Planning Organization • MTP – Metropolitan Transportation Plan • NCTCOG – North Central Texas Council of Governments • NEPA – National Environmental Policy Act • NOPC – Notice of Proposed Construction • NTTA – North Texas Toll Authority • PBLR – Preliminary Bridge Layout Review • PS&E – Plans Specifications and Estimate • PUA – Possession and Use Agreement • ROW – Right-of-Way • RTC – Regional Transportation Council • RTL – Ready to Let (date project is clear for construction but lacks funding for actual let) • RTR – Regional Toll Revenue (funds resulting from certain toll/managed lane projects in DFW region) • RULIS – Right-of-Way, Utilities, Leasing, and Information System • STBG – Surface Transportation Block Grant • STIP – Statewide Transportation Improvement Program • SUE – Subsurface Utility Engineering • SW3P – Storm Water Pollution Prevention Plan • TCP – Traffic Control Plan • TIA – Time Impact Analysis • TPP – Transportation Planning and Programming • TPWD – Texas Parks & Wildlife Department • TTC – Texas Transportation Commission • TxDOT – Texas Department of Transportation • UTP – Unified Transportation Program • VE – Value Engineering Glossary of Acronyms 26 City of Denton Transportation Update Prepared by: August 2023 20 • CAT 1: Preventive Maintenance and Rehabilitation • CAT 2: Metro and Urban Area Corridor Projects • CAT 3: Non-Traditionally Funded Transportation Projects • CAT 4: Statewide Connectivity Corridor Projects • CAT 5: Congestion Mitigation and Air Quality Improvement • CAT 6: Structures Replacement and Rehabilitation (Bridge) • CAT 7: Metropolitan Mobility and Rehabilitation • CAT 8: Safety Projects • CAT 9: Transportation Alternatives • CAT 10: Supplemental Transportation Projects • CAT 11: District Discretionary • CAT 12: Strategic Priority TxDOT Funding Categories 27 August 25, 2023 Report No. 2023-056 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: 2023 Atmos Rate Filing and Approval EXECUTIVE SUMMARY: Atmos Mid-Tex filed for a system-wide rate increase for the next year, beginning Oct. 1, 2023. The City of Denton, through its membership in a coalition of cities, has evaluated the requested increase and negotiated a reduction in Atmos’ overall request. The City of Denton retains original jurisdiction over gas utility rates and must approve any rate increases. BACKGROUND: The City of Denton (“City”), along with 181 other Texas cities served by Atmos Energy Corp., Mid-Tex Division (“Atmos Mid-Tex”), is a member of the Atmos Cities Steering Committee (ACSC). In 2007, ACSC and Atmos Mid-Tex settled a rate application filed by Atmos for an interim rate adjustment commonly referred to as a GRIP filing, arising out of the Gas Reliability Infrastructure Program legislation. That settlement created a new rate review process, referred to as Rate Review Mechanism (“RRM”), as a substitute for the GRIP statute in future rate filings. This process has been in place with some modifications since that time. DISCUSSION: On or about March 31, 2023, Atmos Mid-Tex filed a rate request pursuant to the RRM Tariff adopted by ACSC members. The Company claimed that its cost-of-service in a test year ending December 31, 2022, entitled it to additional system-wide revenues of $165.9 million. Application of the standards set forth in ACSC’s RRM Tariff reduces the Company’s request to $156.1 million, $113.8 million of which would be applicable to ACSC members. After reviewing the filing and conducting discovery, ACSC’s consultants concluded that the system-wide deficiency under the RRM regime should be $130.9 million instead of the claimed $156.1 million. After several settlement meetings, the parties have agreed to settle the case for $142 million. This is a reduction of $23.9 million to the Company’s initial request. This includes payment of ACSC’s expenses. The settlement also includes an additional $19.5 million for the securitization of regulatory asset expenses related to Winter Storm Uri. This was previously approved by the Texas Legislature and Railroad Commission. Summary: $165.9M: Atmos Original Request (system-wide) $156.1M: Tariff-Related (System-wide) $142M: Increase to after review/negotiation $23.9M: Savings from original request 28 August 25, 2023 Report No. 2023-056 Bill Impact The impact of the settlement on average residential rates is an increase of $6.47 monthly, or 7.31%. The increase in average commercial usage will be $24.72 or 5.19%. A bill impact comparison containing these figures is attached. RRM Savings Over GRIP The GRIP process does not allow any review of the reasonableness of capital investment and does not allow cities to participate in the Railroad Commission’s review of annual GRIP filings or allow recovery of Cities’ rate case expenses. The Railroad Commission undertakes a mere administrative review of GRIP filings (instead of a full hearing) and rate increases go into effect without any material adjustments. In ACSC’s view, the GRIP process unfairly raises customers’ rates without any regulatory oversight. In contrast, the RRM process has allowed for a more comprehensive rate review and annual evaluation of expenses and revenues, as well as capital investment. While residents outside municipal limits must pay rates governed by GRIP, there are some cities served by Atmos Mid-Tex that chose to remain under GRIP rather than adopt RRM. When new rates become effective on October 1, 2023, ACSC residents will maintain an economic monthly advantage over GRIP and DARR rates. Comparison to Other Mid-Tex Rates (Residential) AVERAGE BILL COMPARED TO RRM CITIES RRM CITIES $42.62 - ATM CITIES $44.39 +$1.77 ENVIRONS $44.27 +$1.65 CONCLUSION: The RRM process has proven to result in a more efficient and less costly (both from a consumer rate impact perspective and from a rate-making perspective) than the GRIP process. Given Atmos Mid-Tex’s claim that its historic cost of service should entitle it to recover $165.9 million in additional system-wide revenues, the RRM settlement at $142 million for ACSC members reflects substantial savings to ACSC cities. Settlement at $142 million is fair and reasonable. Staff will recommend the City Council approve an ordinance approving the proposed rates at the Sept. 19 Council meeting, with the new rates becoming effective on October 1, 2023. ATTACHMENTS: 1. Average Bill Comparison STAFF CONTACT: Ryan Adams 29 August 25, 2023 Report No. 2023-056 Chief of Staff Ryan.Adams@cityofdenton.com (940) 349-8565 REQUESTOR: Staff Initiated STAFF TIME TO COMPLETE REPORT: 2 hours PARTICIPATING DEPARTMENTS: City Manager’s Office 30 Line No.Current Proposed Amount Percent (b)(c)(d)(e) 1 Rate R @ 43.6 Ccf 2 Customer charge 21.55$ 3 Consumption charge 43.6 CCF X 0.36223$ =15.79 4 Rider GCR Part A 43.6 CCF X 0.63625$ =27.74 5 Rider GCR Part B 43.6 CCF X 0.41732$ =18.20 6 Subtotal 83.28$ 7 Rider FF & Rider TAX 83.28$ X 0.06237 =5.19 8 Total 88.47$ 9 10 Customer charge 22.25$ 11 Consumption charge 43.6 CCF X 0.48567$ =21.18 12 Rider GCR Part A 43.6 CCF X 0.63625$ =27.74 13 Rider GCR Part B 43.6 CCF X 0.41732$ =18.20 14 Subtotal 89.37$ 15 Rider FF & Rider TAX 89.37$ X 0.06237 =5.57 16 Total 94.94$ 6.47$ 7.31% 17 (a) ATMOS ENERGY CORP., MID-TEX DIVISION MID-TEX RATE REVIEW MECHANISM AVERAGE BILL COMPARISON - BASE RATES TEST YEAR ENDING DECEMBER 31, 2022 Change Description 31 Line No.Current Proposed Amount Percent (b)(c)(d)(e)(a) ATMOS ENERGY CORP., MID-TEX DIVISION MID-TEX RATE REVIEW MECHANISM AVERAGE BILL COMPARISON - BASE RATES TEST YEAR ENDING DECEMBER 31, 2022 Change Description 18 Rate C @ 356.6 Ccf 19 Customer charge 63.50$ 20 Consumption charge 356.6 CCF X 0.14137$ =50.41 21 Rider GCR Part A 356.6 CCF X 0.63625$ =226.86 22 Rider GCR Part B 356.6 CCF X 0.30202$ =107.69 23 Subtotal 448.46$ 24 Rider FF & Rider TAX 448.46$ X 0.06237 =27.97 25 Total 476.43$ 26 27 Customer charge 72.00$ 28 Consumption charge 356.6 CCF X 0.18280$ =65.18 29 Rider GCR Part A 356.6 CCF X 0.63625$ =226.86 30 Rider GCR Part B 356.6 CCF X 0.30202$ =107.69 31 Subtotal 471.73$ 32 Rider FF & Rider TAX 471.73$ X 0.06237 =29.42 33 Total 501.15$ 24.72$ 5.19% 34 32 Line No.Current Proposed Amount Percent (b)(c)(d)(e)(a) ATMOS ENERGY CORP., MID-TEX DIVISION MID-TEX RATE REVIEW MECHANISM AVERAGE BILL COMPARISON - BASE RATES TEST YEAR ENDING DECEMBER 31, 2022 Change Description 35 Rate I @ 1720 MMBTU 36 Customer charge 1,204.50$ 37 Consumption charge 1,500 MMBTU X 0.4939$ =740.85 38 Consumption charge 220 MMBTU X 0.3617$ =79.64 39 Consumption charge 0 MMBTU X 0.0776$ =- 40 Rider GCR Part A 1,720 MMBTU X 6.2134$ =10,688.12 41 Rider GCR Part B 1,720 MMBTU X 0.6267$ =1,078.08 42 Subtotal 13,791.19$ 43 Rider FF & Rider TAX 13,791.19$ X 0.06237 =860.17 44 Total 14,651.36$ 45 46 Customer charge 1,382.00$ 47 Consumption charge 1,500 MMBTU X 0.7484$ =1,122.62 48 Consumption charge 220 MMBTU X 0.5963$ =131.30 49 Consumption charge 0 MMBTU X 0.2693$ =- 50 Rider GCR Part A 1,720 MMBTU X 6.2134$ =10,688.12 51 Rider GCR Part B 1,720 MMBTU X 0.6267$ =1,078.08 52 Subtotal 14,402.12$ 53 Rider FF & Rider TAX 14,402.12$ X 0.06237 =898.28 54 Total 15,300.40$ 649.04$ 4.43% 55 33 Line No.Current Proposed Amount Percent (b)(c)(d)(e)(a) ATMOS ENERGY CORP., MID-TEX DIVISION MID-TEX RATE REVIEW MECHANISM AVERAGE BILL COMPARISON - BASE RATES TEST YEAR ENDING DECEMBER 31, 2022 Change Description 56 Rate T @ 4720 MMBTU 57 Customer charge 1,204.50$ 58 Consumption charge 1,500 MMBTU X 0.4939$ =740.85 59 Consumption charge 3,220 MMBTU X 0.3617$ =1,164.50 60 Consumption charge 0 MMBTU X 0.0776$ =- 61 Rider GCR Part B 4,720 MMBTU X 0.6267$ =2,957.85 62 Subtotal 6,067.70$ 63 Rider FF & Rider TAX 6,067.70$ X 0.06237 =378.45 64 Total 6,446.15$ 65 66 Customer charge 1,382.00$ 67 Consumption charge 1,500 MMBTU X 0.5684$ =852.60 68 Consumption charge 3,220 MMBTU X 0.4163$ =1,340.29 69 Consumption charge 0 MMBTU X 0.0893$ =- 70 Rider GCR Part B 4,720 MMBTU X 0.6267$ =2,957.85 71 Subtotal 6,532.74$ 72 Rider FF & Rider TAX 6,532.74$ X 0.06237 =407.45 73 Total 6,940.19$ 494.04$ 7.66% 34 August 25, 2023 Report No. 2023-057 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Fleet Purchase Under Delegation of Authority EXECUTIVE SUMMARY: The purchase of a Komatsu HM300-5 with a 6000-gallon water tank under the Delegation of Authority approved by ordinance 22-1269. This truck was budgeted in FY22/23. This water truck is a replacement for the current water truck used by Beneficial Reuse. The current water truck is beyond repair and replacement of this truck contributes healthier fleet to ensure we are meeting the needs of the City of Denton citizens. BACKGROUND: In late 2019, the City began experiencing challenges in securing materials and supplies due to supply chain issues. Conditions worsened and began to affect several operational areas including Fleet Services. Vehicle lead times grew close to a year under the organization’s normal acquisition process. At times, vehicles and equipment become available through other avenues such as dealer inventory, lease-to-own opportunities, and unclaimed allocations from non- contract Original Equipment Manufacturer (OEM). Staff requested a Delegation of Authority for Fleet Services allowing the City to move quickly when opportunities present to procure vehicles or equipment outside the organization’s normal acquisition process. On June 28, 2022, City Council approved Ordinance 22-1269 providing for the delegation under the following conditions: 1) City Manager, or their designee, will be allowed to sign contracts or other required documentation with OEM suppliers to purchase a vehicle for a city utility or public safety department (which cost that has been approved through the budget process) through the following means: a) Fleet Services will review any available procured contracts (i.e. City of Denton contracts, co-operative contracts, and other City contracts with piggyback options). Fleet Services will use such a contract if available. Once such contract is located, City Manager, or their designee, will be able to execute the appropriate documentation to purchase under the contract. b) In the event there is not a procured contract that can be used for the purchase, and the purchase is required to protect the health and safety of City of Denton residents, Fleet Services will work with the relevant utility or public safety department to prepare a declaration of emergency that will detail why the purchase had to go outside of the normal process and how health and safety are at issue to be reviewed and approved by Purchasing and Legal. c) In the event there is not a procured contract that can be used for the purchase, and the purchase is required to protect the health and safety of City of Denton residents, Fleet 35 August 25, 2023 Report No. 2023-057 Services will work with the relevant utility or public safety department to prepare a declaration of emergency that will detail why the purchase had to go outside of the normal process and how health and safety are at issue to be reviewed and approved by Purchasing and Legal. d) Fleet Services will provide a report to City Council in the Friday Report, or other appropriate method, regarding any vehicles purchased with this authority, the cost, any markup or discounts received, and a running total of each department’s vehicle budget as the funds are used. 2) This delegation of authority is time limited to the earlier of three years or when market conditions return to normal. DISCUSSION: The replacement of this water truck was approved by budget in FY 22/23. Currently, the lead time for a water truck is approximately 10 months. Beneficial Reuse and Fleet has made the decision to purchase this unit that is available in the Dallas metroplex. This water truck was recently located at Kirby-Smith Machinery, Inc. in Fort Worth, Texas. Kirby-Smith is on Cooperative contract with BuyBoard #685-22. Chapter 791 of the Texas Government Code authorizes respective participating governments to enter into agreements for the purchase of goods and services. The Agreement allows both entities to utilize contracts for goods and services competitively solicited by the other party to the contract. The solicitation process followed by both entities meets all statutory procurement requirements per Local Government Code 271.102. EXHIBITS Exhibit 1 Sales Quote STAFF CONTACT: Dustin Rolfe Fleet Superintendent Dustin.Rolfe@cityofdenton.com (940) 349-8438 36 www.kirby-smith.com | 888-861-0219 Oklahoma City * Tulsa * McAlester * Dallas * Fort Worth * Abilene * Amarillo * Lubbock Waco * Odessa * St. Louis * Kansas City 6/30/2023 Quote #: jmcdonnell-1737 Mark Bartek CITY OF DENTON 901 B Texas Street Denton, TX 76209 Dear Mark Bartek We are pleased to quote the following for your consideration: KOMATSU HM300-5 2021 model w/ 2887 hours, Unit # K21131, S/N 11237. The following Factory and Dealer Options are included in the package: • KOMATSU HM300-5 2021, 30T, with NEW Premier Tank installed • 23.5R25 XADN PLUS E3 MICHELIN TIRES • 6000 Gallon Premier Tank (Remote Cannon, Front & rear spray, 50’ hose) • HM300-5 Factory Premier Warranty until 3-24-26 or 9000 hours • Premier Tank Extended Warranty for 3 years Total Price: $423,823.00 To be purchased through BuyBoard. Contract #685-22 Contract price is $470,915.00; less contract discount of 10% (-$47,092.00); New net selling price is $423,823.00 We believe the equipment as quoted will exceed your expectations. On behalf of Kirby-Smith Machinery, Inc., thank you for the opportunity to quote you this package. Sincerely, JAMES MCDONNELL Governmental Sales Rep Kirby-Smith Machinery, Inc. Phone: Cell: 214-986-5857 Email: jmcdonnell@kirby-smith.com 37 August 25, 2023 Report No. 2023-058 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Summary of Senate Bill 2, from the Second Special Session of the 88th Session of the Texas Legislature BACKGROUND: On July 25, 2023, City staff and the City’s state legislative consultant, Jackson Walker, provided an update on the 88th Session of the Texas Legislature. During that discussion, several Council members inquired regarding the provisions of S.B. 2 (from the second special session), to which staff responded that a summary would be made provided to the City Council. S.B. 2 addresses various aspects of property tax relief, including: • Over $12 billion in state funding to reduce school property tax rates; • $100,000 homestead exemption for school property taxes; • A 20% circuit breaker (essentially an appraisal cap) on appraised values for non- homesteaded properties that are valued at $5 million and under as a three-year pilot project; • Creates newly elected positions on local appraisal boards; and • Savings on franchise tax for small business DISCUSSION: Articles 2 through 6 encompass the substantive components of S.B. 2, each addressing distinct aspects of school district taxation and governance. Article 2 - School District Tax Rate Compression: This article directs the Texas Education Agency (TEA) Commissioner to calculate the maximum compressed tax rates (MCTR) for school districts for the 2023-24 and 2024-25 school years. The MCTR is then reduced by 0.107 cents as specified in the bill. Notably, an exception applies to ensure that no district's MCTR falls below 90 percent of another district's MCTR (a hold harmless provision). The article includes a Sunset Provision on September 1, 2025, and takes effect upon passage of H.J.R. 2 on the November 7, 2023 election following the official canvass. Article 3 - School District Residence Homestead Exemption: This article raises the homestead exemption to $100,000 of appraised value for school districts. It also prohibits reductions or repeal of exemptions adopted under Tax Code 11.13(n) for the 2022 tax year by school districts, municipalities, and governing bodies until December 31, 2027. School districts are entitled to additional state aid if state and local revenue servicing debt under SB 2 is insufficient compared to the previous status as of September 1, 2022. Various provisions come into effect upon passage of HJR 2 on the November 7, 2023, election, with specific sections having distinct effective dates, including January 1, 2025. 38 August 25, 2023 Report No. 2023-058 Article 4 - Circuit Breaker Limitation on Property Value Increases: Focused on non-homesteaded real property, this article establishes a “circuit breaker” appraisal limitation of 20% for properties with up to $5 million appraised value for the 2024 tax year. This circuit breaker applies to all taxing jurisdictions. The chief appraiser is responsible for providing notice on property eligibility. If H.J.R. 2 is passed in the November 7, 2023, election, the circuit breaker limitation will take effect on January 1, 2024. The circuit breaker functions as a pilot program that will last until December 31, 2026. Other provisions of Article 4 dealing with the appraisal process will take effect on January 1, 2027. Note: The City is currently working to secure data from the Denton Central Appraisal District that would allow our staff to approximate the impact of this “circuit breaker” appraisal cap, had it been in place in the current tax year. If staff is able to receive the data for analysis, there will be a follow-up report outlining the estimated financial impact of this portion of S.B. 2. Otherwise, the Appraisal District plans to provide these calculations to the City in preliminary values delivered to us beginning in late April 2024 (if applicable).” Article 5 - Boards of Directors of Appraisal Districts: In counties with over 75,000 population, Article 5 creates appraisal district boards of directors comprising nine members. Five members are appointed by taxing units in the district, three are elected in the general election, and the county tax assessor-collector serves as an ex officio member. The article outlines election procedures, changes to the recall process, and effective dates. The key provisions of the article become effective on July 1, 2024, provided H.J.R. 2 is approved by voters. Article 6 - Transitional Tax Year Provisions: Article 6 mandates chief appraisers to prepare supplemental appraisal records for the 2023 tax year to account for changes in the law under S.B. 2. Individuals receiving provisional tax bills are notified of potential changes. The tax assessor is required to mail a supplemental and final tax bill, and a one-month extension is granted for paying delinquent taxes until December 31, 2024. Article 6 took immediate effect upon passage of S.B. 2. Note: Since the city has not changed its exemptions relating to property tax since January 1, 2022, and since the changes in the exemption amounts under S.B. 2 apply to school district tax impositions, there is no significant change to the city’s calculations for the current year no new and voter approval tax rates. Conclusion: Senate Bill 2 encompasses a comprehensive set of provisions aimed at refining school district taxation, appraisal limits for all jurisdictions, and appraisal district governance. ATTACHMENTS: 1. Senate Bill 2 – Enrolled STAFF CONTACT: Ryan Adams 39 August 25, 2023 Report No. 2023-058 Chief of Staff Ryan.Adams@cityofdenton.com (940) 349-8565 REQUESTOR: Staff initiated STAFF TIME TO COMPLETE REPORT: 2 hours PARTICIPATING DEPARTMENTS: City Manager’s Office Legal 40 S.B.A No.A 2 AN ACT relating to providing property tax relief through the public school finance system, exemptions, limitations on appraisals and taxes, and property tax administration; authorizing the imposition of a fee. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: ARTICLE 1. SHORT TITLE SECTION A1.01.AA This Act may be cited as the Property Tax Relief Act. ARTICLE 2. SCHOOL DISTRICT TAX RATE COMPRESSION SECTION A2.01.AA Subchapter F , Chapter 48 , Education Code, is amended by adding Sections 48.2555 and 48.283 to read as follows: Sec.A 48.2555.AA MAXIMUM COMPRESSED TAX RATE FOR 2023-2024 SCHOOL YEAR. (a)AA Notwithstanding any other provision of this title or Chapter 26 , Tax Code, for the 2023-2024 school year, the commissioner shall calculate the value of a school district ’s maximum compressed tax rate by determining the district ’s maximum compressed rate under Section 48.2551 or 48.2552 (b), if applicable, and reducing the tax rate determined under the applicable section by $0.107. (b)AA If a school district ’s maximum compressed tax rate as calculated under Subsection (a) would be less than 90 percent of another school district ’s maximum compressed tax rate under Subsection (a), the district ’s maximum compressed tax rate is the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 41 value at which the district ’s maximum compressed tax rate would be equal to 90 percent of the other district ’s maximum compressed tax rate. (c)AA Notwithstanding any other provision of this title or Chapter 26 , Tax Code, for purposes of determining funding for school districts for the 2023-2024 school year, a reference in any of the following provisions of law to a school district ’s maximum compressed tax rate or maximum compressed rate as determined under Section 48.2551 means the maximum compressed tax rate determined for the district under this section: (1)AA Section 13.054 (f); (2)AA Section 45.003 (d); (3)AA Section 45.0032 (a); (4)AA Section 48.051 (a); (5)AA Sections 48.2553 (a) and (e); (6)AA Section 48.2556; and (7)AA Section 26.08 (n), Tax Code. (d)AA For purposes of Section 30.003 (f-1), a reference in that section to Section 48.2551 includes this section. (e)AA Notwithstanding any other provision of this title, for purposes of determining a school district ’s maximum compressed tax rate under Section 48.2551 for the 2024-2025 school year, the value of the district ’s "PYMCR" is the maximum compressed tax rate determined for the district under this section for the preceding school year. (f)AA This section expires September 1, 2025. Sec.A 48.283.AA ADDITIONAL STATE AID FOR CERTAIN DISTRICTS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 2 42 IMPACTED BY COMPRESSION. A school district that received an adjustment under Section 48.257 (b) for the 2022-2023 school year is entitled to additional state aid for each school year in an amount equal to the amount of that adjustment for the 2022-2023 school year less the difference, if the difference is greater than zero, between: (1)AA the amount to which the district is entitled under this chapter for the current school year; and (2)AA the amount to which the district would be entitled under this chapter for the current school year if the district ’s maximum compressed tax rate had not been reduced under Section 48.2555, as added by S.B.A 2, Acts of the 88th Legislature, 2nd Called Session, 2023. ARTICLE 3. SCHOOL DISTRICT RESIDENCE HOMESTEAD EXEMPTION SECTION A3.01.AA Section 11.13 , Tax Code, is amended by amending Subsection (b) and adding Subsection (n-1) to read as follows: (b)AA An adult is entitled to exemption from taxation by a school district of $100,000 [$40,000] of the appraised value of the adult ’s residence homestead, except that only $5,000 of the exemption applies to an entity operating under former Chapter 17, 18 ,25 ,26 ,27 , or 28 , Education Code, as those chapters existed on May 1, 1995, as permitted by Section 11.301 , Education Code. (n-1)AA The governing body of a school district, municipality, or county that adopted an exemption under Subsection (n) for the 2022 tax year may not reduce the amount of or repeal the exemption. This subsection expires December 31, 2027. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 3 43 SECTION A3.02.AA Section 11.26 , Tax Code, is amended by amending Subsections (a), (a-10), and (o) and adding Subsections (a-11) and (a-12) to read as follows: (a)AA The tax officials shall appraise the property to which this section applies and calculate taxes as on other property, but if the tax so calculated exceeds the limitation imposed by this section, the tax imposed is the amount of the tax as limited by this section, except as otherwise provided by this section. A school district may not increase the total annual amount of ad valorem tax it imposes on the residence homestead of an individual 65 years of age or older or on the residence homestead of an individual who is disabled, as defined by Section 11.13 , above the amount of the tax it imposed in the first tax year in which the individual qualified that residence homestead for the applicable exemption provided by Section 11.13 (c) for an individual who is 65 years of age or older or is disabled. If the individual qualified that residence homestead for the exemption after the beginning of that first year and the residence homestead remains eligible for the same exemption for the next year, and if the school district taxes imposed on the residence homestead in the next year are less than the amount of taxes imposed in that first year, a school district may not subsequently increase the total annual amount of ad valorem taxes it imposes on the residence homestead above the amount it imposed in the year immediately following the first year for which the individual qualified that residence homestead for the same exemption, except as provided by Subsection (b). [If the first tax year the individual qualified the residence homestead for the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 4 44 exemption provided by Section 11.13 (c) for individuals 65 years of age or older or disabled was a tax year before the 2015 tax year, the amount of the limitation provided by this section is the amount of tax the school district imposed for the 2014 tax year less an amount equal to the amount determined by multiplying $10,000 times the tax rate of the school district for the 2015 tax year, plus any 2015 tax attributable to improvements made in 2014, other than improvements made to comply with governmental regulations or repairs.] (a-10)AA Notwithstanding the other provisions of this section, if in the 2024 or a subsequent tax year an individual qualifies for a limitation on tax increases provided by this section on the individual ’s residence homestead, the amount of the limitation provided by this section on the homestead is equal to the amount computed by: (1)AA multiplying the taxable value of the homestead in the preceding tax year by a tax rate equal to the difference between the school district ’s maximum compressed rate for the preceding tax year and the district ’s maximum compressed rate for the current tax year; (2)AA subtracting the amount computed under Subdivision (1) from the amount of tax the district imposed on the homestead in the preceding tax year; [and] (3)AA adding any tax imposed in the current tax year attributable to improvements made in the preceding tax year as provided by Subsection (b) to the amount computed under Subdivision (2); (4)AA multiplying the amount of any increase in the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 5 45 current tax year as compared to the preceding tax year in the aggregate amount of the exemptions to which the individual is entitled under Sections 11.13 (b) and (c) by the school district ’s tax rate for the current tax year; and (5)AA subtracting the amount computed under Subdivision (4) from the amount computed under Subdivision (3). (a-11)AA This subsection applies only to an individual who in the 2023 tax year qualifies for a limitation under this section and for whom the 2022 tax year or an earlier tax year was the first tax year the individual or the individual ’s spouse qualified for an exemption under Section 11.13 (c). The amount of the limitation provided by this section on the residence homestead of an individual to which this subsection applies for the 2023 tax year is the amount of the limitation as computed under Subsection (a-5), (a-6), (a-7), (a-8), or (a-9) of this section, as applicable, less an amount equal to the product of $60,000 and the tax rate of the school district for the 2023 tax year. This subsection expires January 1, 2025. (a-12)AA This subsection applies only to an individual who in the 2023 tax year qualifies for a limitation under this section and for whom the 2021 tax year or an earlier tax year was the first tax year the individual or the individual ’s spouse qualified for an exemption under Section 11.13 (c). The amount of the limitation provided by this section on the residence homestead of an individual to which this subsection applies for the 2023 tax year is the amount of the limitation as computed under Subsection (a-11) of this section less an amount equal to the product of $15,000 and the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 6 46 tax rate of the school district for the 2022 tax year. This subsection expires January 1, 2025. (o)AA Notwithstanding Subsections (a)[, (a-3),] and (b), an improvement to property that would otherwise constitute an improvement under Subsection (b) is not treated as an improvement under that subsection if the improvement is a replacement structure for a structure that was rendered uninhabitable or unusable by a casualty or by wind or water damage. For purposes of appraising the property in the tax year in which the structure would have constituted an improvement under Subsection (b), the replacement structure is considered to be an improvement under that subsection only if: (1)AA the square footage of the replacement structure exceeds that of the replaced structure as that structure existed before the casualty or damage occurred; or (2)AA the exterior of the replacement structure is of higher quality construction and composition than that of the replaced structure. SECTION A3.03.AA Section 46.071 , Education Code, is amended by amending Subsections (a-1) and (b-1) and adding Subsections (a-2), (b-2), and (c-2) to read as follows: (a-1)AA For [Beginning with] the 2022-2023 school year, a school district is entitled to additional state aid under this subchapter to the extent that state and local revenue used to service debt eligible under this chapter is less than the state and local revenue that would have been available to the district under this chapter as it existed on September 1, 2021, if any increase in 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 7 47 the residence homestead exemption under Section 1-b (c), Article VIII, Texas Constitution, as proposed by the 87th Legislature, 3rd Called Session, 2021, had not occurred. (a-2)AA Beginning with the 2023-2024 school year, a school district is entitled to additional state aid under this subchapter to the extent that state and local revenue used to service debt eligible under this chapter is less than the state and local revenue that would have been available to the district under this chapter as it existed on September 1, 2022, if any increase in a residence homestead exemption under Section 1-b (c), Article VIII, Texas Constitution, and any additional limitation on tax increases under Section 1-b(d) of that article as proposed by the 88th Legislature, 2nd Called Session, 2023, had not occurred. (b-1)AA Subject to Subsections (c-1), (d), and (e), additional state aid under this section for [beginning with] the 2022-2023 school year is equal to the amount by which the loss of local interest and sinking revenue for debt service attributable to any increase in the residence homestead exemption under Section 1-b (c), Article VIII, Texas Constitution, as proposed by the 87th Legislature, 3rd Called Session, 2021, is not offset by a gain in state aid under this chapter. (b-2)AA Subject to Subsections (c-2), (d), and (e), additional state aid under this section beginning with the 2023-2024 school year is equal to the amount by which the loss of local interest and sinking revenue for debt service attributable to any increase in a residence homestead exemption under Section 1-b (c), Article VIII, Texas Constitution, and any additional 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 8 48 limitation on tax increases under Section 1-b(d) of that article as proposed by the 88th Legislature, 2nd Called Session, 2023, is not offset by a gain in state aid under this chapter. (c-2)AA For the purpose of determining state aid under Subsections (a-2) and (b-2), local interest and sinking revenue for debt service is limited to revenue required to service debt eligible under this chapter as of September 1, 2023, or authorized by the voters but not yet issued as of September 1, 2023, that later becomes eligible under this chapter, including refunding of that debt, subject to Section 46.061 . The limitation imposed by Section 46.034 (a) does not apply for the purpose of determining state aid under this section. SECTION A3.04.AA Section 48.2542 , Education Code, is amended to read as follows: Sec.A 48.2542.AA ADDITIONAL STATE AID FOR ADJUSTMENT OF LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED. Notwithstanding any other provision of this chapter, if a school district is not fully compensated through state aid or the calculation of excess local revenue under this chapter based on the determination of the district ’s taxable value of property under Subchapter M, Chapter 403 , Government Code, the district is entitled to additional state aid in the amount necessary to fully compensate the district for the amount of ad valorem tax revenue lost due to a reduction of the amount of the limitation on tax increases provided by Sections 11.26 (a-4), (a-5), (a-6), (a-7), (a-8), (a-9), [and] (a-10), (a-11), and (a-12), Tax Code, as applicable. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 9 49 SECTION A3.05.AA Effective January 1, 2025, Section 48.2542 , Education Code, is amended to read as follows: Sec.A 48.2542.AA ADDITIONAL STATE AID FOR ADJUSTMENT OF LIMITATION ON TAX INCREASES ON HOMESTEAD OF ELDERLY OR DISABLED. Notwithstanding any other provision of this chapter, if a school district is not fully compensated through state aid or the calculation of excess local revenue under this chapter based on the determination of the district ’s taxable value of property under Subchapter M, Chapter 403 , Government Code, the district is entitled to additional state aid in the amount necessary to fully compensate the district for the amount of ad valorem tax revenue lost due to a reduction of the amount of the limitation on tax increases provided by Section 11.26 (a-10) [Sections 11.26 (a-4), (a-5), (a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as applicable]. SECTION A3.06.AA Section 48.2543 , Education Code, is amended to read as follows: Sec.A 48.2543.AA ADDITIONAL STATE AID FOR HOMESTEAD EXEMPTION. (a) For [Beginning with] the 2022-2023 school year, a school district is entitled to additional state aid to the extent that state and local revenue under this chapter and Chapter 49 is less than the state and local revenue that would have been available to the district under this chapter and Chapter 49 as those chapters existed on September 1, 2021, if any increase in the residence homestead exemption under Section 1-b (c), Article VIII, Texas Constitution, as proposed by the 87th Legislature, 3rd Called Session, 2021, had not occurred. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 10 50 (a-1)AA Beginning with the 2023-2024 school year, a school district is entitled to additional state aid to the extent that state and local revenue under this chapter and Chapter 49 is less than the state and local revenue that would have been available to the district under this chapter and Chapter 49 as those chapters existed on September 1, 2022, if any increase in a residence homestead exemption under Section 1-b (c), Article VIII, Texas Constitution, and any additional limitation on tax increases under Section 1-b(d) of that article as proposed by the 88th Legislature, 2nd Called Session, 2023, had not occurred. (b)AA The lesser of the school district ’s currently adopted maintenance and operations tax rate or the adopted maintenance and operations tax rate for: (1)AA the 2021 tax year is used for the purpose of determining additional state aid under Subsection (a); and (2)AA the 2022 tax year is used for the purpose of determining additional state aid under Subsection (a-1). SECTION A3.07.AA Section 48.2556 (a), Education Code, is amended to read as follows: (a)AA The agency shall post the following information on the agency ’s Internet website for purposes of allowing the chief appraiser of each appraisal district and the assessor for each school district to make the calculations required by Sections 11.26 (a-5), (a-6), (a-7), (a-8), (a-9), [and] (a-10), (a-11), and (a-12), Tax Code: (1)AA each school district ’s maximum compressed rate, as determined under Section 48.2551 , for each tax year beginning with 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 11 51 the 2019 tax year; and (2)AA each school district ’s tier one maintenance and operations tax rate, as provided by Section 45.0032 (a), for the 2018 tax year. SECTION A3.08.AA Effective January 1, 2025, Section 48.2556 (a), Education Code, is amended to read as follows: (a)AA For purposes of allowing the chief appraiser of each appraisal district and the assessor for each school district to make the calculations required by Section 11.26 (a-10), Tax Code, the [The] agency shall post [the following information] on the agency ’s Internet website [for purposes of allowing the chief appraiser of each appraisal district and the assessor for each school district to make the calculations required by Sections 11.26 (a-5), (a-6), (a-7), (a-8), (a-9), and (a-10), Tax Code: [(1)]AA each school district ’s maximum compressed rate, as determined under Section 48.2551 , for the current [each] tax year and the preceding [beginning with the 2019] tax year[; and [(2)AA each school district ’s tier one maintenance and operations tax rate, as provided by Section 45.0032 (a), for the 2018 tax year]. SECTION A3.09.AA Section 49.004 , Education Code, is amended by adding Subsections (a-1), (b-1), and (c-1) to read as follows: (a-1)AA This subsection applies only if the constitutional amendment proposed by H.J.R. 2, 88th Legislature, 2nd Called Session, 2023, is approved by the voters in an election held for that purpose. As soon as practicable after receiving revised property values that reflect adoption of the constitutional 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 12 52 amendment, the commissioner shall review the local revenue level of districts in the state and revise as necessary the notifications provided under Subsection (a) for the 2023-2024 school year. This subsection expires September 1, 2024. (b-1)AA This subsection applies only to a district that has not previously held an election under this chapter. Notwithstanding Subsection (b), a district that enters into an agreement to exercise an option to reduce the district ’s local revenue level in excess of entitlement under Section 49.002 (3), (4), or (5) for the 2023-2024 school year may request and, as provided by Section 49.0042(a), receive approval from the commissioner to delay the date of the election otherwise required to be ordered before September 1. This subsection expires September 1, 2024. (c-1)AA Notwithstanding Subsection (c), a district that receives approval from the commissioner to delay an election as provided by Subsection (b-1) may adopt a tax rate for the 2023 tax year before the commissioner certifies that the district has reduced its local revenue level to the level established by Section 48.257 . This subsection expires September 1, 2024. SECTION A3.10.AA Subchapter A , Chapter 49 , Education Code, is amended by adding Section 49.0042 to read as follows: Sec.A 49.0042.AA TRANSITIONAL PROVISIONS: INCREASED HOMESTEAD EXEMPTION AND LIMITATION ON TAX INCREASES. (a) The commissioner shall approve a district ’s request under Section 49.004 (b-1) to delay the date of an election required under this chapter if the commissioner determines that the district would not have a local revenue level in excess of entitlement if the constitutional 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 13 53 amendment proposed by H.J.R. 2, 88th Legislature, 2nd Called Session, 2023, were approved by the voters. (b)AA The commissioner shall set a date by which each district that receives approval under this section must order the election. (c)AA Not later than the 2024-2025 school year, the commissioner shall order detachment and annexation of property under Subchapter G or consolidation under Subchapter H as necessary to reduce the district ’s local revenue level to the level established by Section 48.257 for a district that receives approval under this section and subsequently: (1)AA fails to hold the election; or (2)AA does not receive voter approval at the election. (d)AA This section expires September 1, 2025. SECTION A3.11.AA Subchapter A , Chapter 49 , Education Code, is amended by adding Section 49.0121 to read as follows: Sec.A 49.0121.AA TRANSITIONAL ELECTION DATES. (a)AA This section applies only to an election under this chapter that occurs during the 2023-2024 school year. (b)AA Section 49.012 does not apply to a district that receives approval of a request under Section 49.0042. The district shall hold the election on a Tuesday or Saturday on or before a date specified by the commissioner. Section 41.001 , Election Code, does not apply to the election. (c)AA This section expires September 1, 2024. SECTION A3.12.AA Section 49.154 , Education Code, is amended by adding Subsections (a-2) and (a-3) to read as follows: (a-2)AA Notwithstanding Subsections (a) and (a-1), a district 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 14 54 that receives approval of a request under Section 49.0042 shall pay for credit purchased: (1)AA in equal monthly payments as determined by the commissioner beginning March 15, 2024, and ending August 15, 2024; or (2)AA in the manner provided by Subsection (a)(2), provided that the district notifies the commissioner of the district ’s election to pay in that manner not later than March 15, 2024. (a-3)AA Subsection (a-2) and this subsection expire September 1, 2024. SECTION A3.13.AA Section 49.308 , Education Code, is amended by adding Subsection (a-1) to read as follows: (a-1)AA Notwithstanding Subsection (a), for the 2023-2024 school year, the commissioner shall order any detachments and annexations of property under this subchapter as soon as practicable after the canvass of the votes on the constitutional amendment proposed by H.J.R. 2, 88th Legislature, 2nd Called Session, 2023. This subsection expires September 1, 2024. SECTION A3.14.AA Section 403.302 , Government Code, is amended by amending Subsection (j-1) and adding Subsection (j-2) to read as follows: (j-1)AA In the final certification of the study under Subsection (j), the comptroller shall separately identify the final taxable value for each school district as adjusted to account for the reduction of the amount of the limitation on tax increases provided by Section 11.26 (a-10) [Sections 11.26 (a-4), (a-5), 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 15 55 (a-6), (a-7), (a-8), (a-9), and (a-10)], Tax Code[, as applicable]. (j-2)AA In the final certification of the study under Subsection (j), the comptroller shall separately identify the final taxable value for each school district as adjusted to account for the reduction of the amount of the limitation on tax increases provided by Sections 11.26 (a-5), (a-6), (a-7), (a-8), (a-9), (a-10), (a-11), and (a-12), Tax Code. This subsection expires January 1, 2025. SECTION A3.15.AA (a) Sections 11.26 (a-1), (a-2), and (a-3), Tax Code, are repealed. (b)AA Effective January 1, 2025, Sections 11.26 (a-5), (a-6), (a-7), (a-8), and (a-9), Tax Code, are repealed. SECTION A3.16.AA Sections 11.13 and 11.26 , Tax Code, as amended by this article, apply only to an ad valorem tax year that begins on or after January 1, 2023. ARTICLE 4. CIRCUIT BREAKER LIMITATION ON INCREASES IN VALUE OF REAL PROPERTY OTHER THAN RESIDENCE HOMESTEAD SECTION A4.01.AA Section 1.12 (d), Tax Code, is amended to read as follows: (d)AA For purposes of this section, the appraisal ratio of property [a homestead] to which Section 23.23 or 23.231 applies is the ratio of the property ’s market value as determined by the appraisal district or appraisal review board, as applicable, to the market value of the property according to law. The appraisal ratio is not calculated according to the appraised value of the property as limited by Section 23.23 or 23.231. SECTION A4.02.AA Effective January 1, 2027, Section 1.12 (d), 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 16 56 Tax Code, is amended to read as follows: (d)AA For purposes of this section, the appraisal ratio of a homestead to which Section 23.23 applies is the ratio of the property ’s market value as determined by the appraisal district or appraisal review board, as applicable, to the market value of the property according to law.AA The appraisal ratio is not calculated according to the appraised value of the property as limited by Section 23.23 . SECTION A4.03.AA Subchapter B, Chapter 23 , Tax Code, is amended by adding Section 23.231 to read as follows: Sec.A 23.231.AA CIRCUIT BREAKER LIMITATION ON APPRAISED VALUE OF REAL PROPERTY OTHER THAN RESIDENCE HOMESTEAD. (a)AA In this section: (1)AA "Consumer price index" means the average over a state fiscal year of the Consumer Price Index for All Urban Consumers (CPI-U), U.S. City Average, published monthly by the United States Bureau of Labor Statistics, or its successor in function. (2)AA "Disaster recovery program" means a disaster recovery program funded with community development block grant disaster recovery money authorized by federal law. (3)AA "New improvement" means an improvement to real property made after the most recent appraisal of the property that increases the market value of the property and the value of which is not included in the appraised value of the property for the preceding tax year. The term does not include repairs to or ordinary maintenance of an existing structure or the grounds or 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 17 57 another feature of the property. (b)AA This section applies only to real property with an appraised value of not more than the amount determined under Subsection (j) for the tax year in which the property first qualifies for the circuit breaker limitation authorized by this section. (c)AA This section does not apply to: (1)AA a residence homestead that qualifies for an exemption under Section 11.13 ; or (2)AA property appraised under Subchapter C, D, E, F, G, or H. (d)AA Notwithstanding the requirements of Section 25.18 and regardless of whether the appraisal office has appraised the property and determined the market value of the property for the tax year, an appraisal office may increase the appraised value of real property to which this section applies for a tax year to an amount not to exceed the lesser of: (1)AA the market value of the property for the most recent tax year that the market value was determined by the appraisal office; or (2)AA the sum of: (A)AA 20 percent of the appraised value of the property for the preceding tax year; (B)AA the appraised value of the property for the preceding tax year; and (C)AA the market value of all new improvements to the property. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 18 58 (e)AA When appraising real property to which this section applies, the chief appraiser shall: (1)AA appraise the property at its market value; and (2)AA include in the appraisal records both the market value of the property and the amount computed under Subsection (d)(2). (f)AA The circuit breaker limitation provided by Subsection (d) takes effect as to a parcel of real property on January 1 of the tax year following the first tax year in which the owner owns the property on January 1. The circuit breaker limitation expires on January 1 of the tax year following the tax year in which the owner of the property ceases to own the property. (g)AA For purposes of Subsection (f), a person who acquired real property to which this section applies before the 2023 tax year is considered to have acquired the property on January 1, 2023. (h)AA Notwithstanding Subsections (a) and (d) and except as provided by Subdivision (2) of this subsection, an improvement to real property that would otherwise constitute a new improvement is not treated as a new improvement if the improvement is a replacement structure for a structure that was rendered uninhabitable or unusable by a casualty or by wind or water damage. For purposes of appraising the property under Subsection (d) in the tax year in which the structure would have constituted a new improvement: (1)AA the appraised value the property would have had in the preceding tax year if the casualty or damage had not occurred is considered to be the appraised value of the property for that year, regardless of whether that appraised value exceeds the actual 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 19 59 appraised value of the property for that year as limited by Subsection (d); and (2)AA the replacement structure is considered to be a new improvement only if: (A)AA the square footage of the replacement structure exceeds that of the replaced structure as that structure existed before the casualty or damage occurred; or (B)AA the exterior of the replacement structure is of higher quality construction and composition than that of the replaced structure. (i)AA Notwithstanding Subsection (h)(2), and only to the extent necessary to satisfy the requirements of a disaster recovery program, a replacement structure described by that subdivision is not considered to be a new improvement if to satisfy the requirements of the disaster recovery program it was necessary that: (1)AA the square footage of the replacement structure exceed that of the replaced structure as that structure existed before the casualty or damage occurred; or (2)AA the exterior of the replacement structure be of higher quality construction and composition than that of the replaced structure. (j)AA For the purpose of Subsection (b), for the 2024 tax year, the amount is $5 million. For the 2025 tax year, the comptroller shall determine the amount for purposes of Subsection (b) by increasing or decreasing, as applicable, the amount in effect for the 2024 tax year by an amount equal to $5 million 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 20 60 multiplied by the percentage increase or decrease during the preceding state fiscal year in the consumer price index. For each subsequent tax year, the comptroller shall determine the amount for purposes of Subsection (b) by increasing or decreasing, as applicable, the amount in effect for the preceding tax year by an amount equal to that amount multiplied by the percentage increase or decrease during the preceding state fiscal year in the consumer price index, rounded to the nearest $10,000. The comptroller shall publish the amount in effect for a tax year under this subsection as soon as practicable after January 1 of the tax year. (k)AA This section expires December 31, 2026. SECTION A4.04.AA Sections 25.19 (b) and (g), Tax Code, are amended to read as follows: (b)AA The chief appraiser shall separate real from personal property and include in the notice for each: (1)AA a list of the taxing units in which the property is taxable; (2)AA the appraised value of the property in the preceding year; (3)AA the taxable value of the property in the preceding year for each taxing unit taxing the property; (4)AA the appraised value of the property for the current year, the kind and amount of each exemption and partial exemption, if any, approved for the property for the current year and for the preceding year, and, if an exemption or partial exemption that was approved for the preceding year was canceled or reduced for the current year, the amount of the exemption or partial 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 21 61 exemption canceled or reduced; (4-a)AA a statement of whether the property qualifies for the circuit breaker limitation on appraised value provided by Section 23.231; (5)AA in italic typeface, the following statement: "The Texas Legislature does not set the amount of your local taxes. Your property tax burden is decided by your locally elected officials, and all inquiries concerning your taxes should be directed to those officials"; (6)AA a detailed explanation of the time and procedure for protesting the value; (7)AA the date and place the appraisal review board will begin hearing protests; (8)AA an explanation of the availability and purpose of an informal conference with the appraisal office before a hearing on a protest; and (9)AA a brief explanation that the governing body of each taxing unit decides whether or not taxes on the property will increase and the appraisal district only determines the value of the property. (g)AA By April 1 or as soon thereafter as practicable if the property is a single-family residence that qualifies for an exemption under Section 11.13 , or by May 1 or as soon thereafter as practicable in connection with any other property, the chief appraiser shall deliver a written notice to the owner of each property not included in a notice required to be delivered under Subsection (a), if the property was reappraised in the current tax 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 22 62 year, if the ownership of the property changed during the preceding year, or if the property owner or the agent of a property owner authorized under Section 1.111 makes a written request for the notice.AA The chief appraiser shall separate real from personal property and include in the notice for each property: (1)AA the appraised value of the property in the preceding year; (2)AA the appraised value of the property for the current year and the kind of each partial exemption, if any, approved for the current year; (2-a)AA a statement of whether the property qualifies for the circuit breaker limitation on appraised value provided by Section 23.231; (3)AA a detailed explanation of the time and procedure for protesting the value; and (4)AA the date and place the appraisal review board will begin hearing protests. SECTION A4.05.AA Effective January 1, 2027, Sections 25.19 (b) and (g), Tax Code, are amended to read as follows: (b)AA The chief appraiser shall separate real from personal property and include in the notice for each: (1)AA a list of the taxing units in which the property is taxable; (2)AA the appraised value of the property in the preceding year; (3)AA the taxable value of the property in the preceding year for each taxing unit taxing the property; 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 23 63 (4)AA the appraised value of the property for the current year, the kind and amount of each exemption and partial exemption, if any, approved for the property for the current year and for the preceding year, and, if an exemption or partial exemption that was approved for the preceding year was canceled or reduced for the current year, the amount of the exemption or partial exemption canceled or reduced; (5)AA in italic typeface, the following statement: "The Texas Legislature does not set the amount of your local taxes. Your property tax burden is decided by your locally elected officials, and all inquiries concerning your taxes should be directed to those officials"; (6)AA a detailed explanation of the time and procedure for protesting the value; (7)AA the date and place the appraisal review board will begin hearing protests; (8)AA an explanation of the availability and purpose of an informal conference with the appraisal office before a hearing on a protest; and (9)AA a brief explanation that the governing body of each taxing unit decides whether or not taxes on the property will increase and the appraisal district only determines the value of the property. (g)AA By April 1 or as soon thereafter as practicable if the property is a single-family residence that qualifies for an exemption under Section 11.13 , or by May 1 or as soon thereafter as practicable in connection with any other property, the chief 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 24 64 appraiser shall deliver a written notice to the owner of each property not included in a notice required to be delivered under Subsection (a), if the property was reappraised in the current tax year, if the ownership of the property changed during the preceding year, or if the property owner or the agent of a property owner authorized under Section 1.111 makes a written request for the notice.AA The chief appraiser shall separate real from personal property and include in the notice for each property: (1)AA the appraised value of the property in the preceding year; (2)AA the appraised value of the property for the current year and the kind of each partial exemption, if any, approved for the current year; (3)AA a detailed explanation of the time and procedure for protesting the value; and (4)AA the date and place the appraisal review board will begin hearing protests. SECTION A4.06.AA Section 25.19 , Tax Code, is amended by adding Subsection (o) to read as follows: (o)AA A notice required under Subsection (a) or (g) to be delivered to the owner of real property other than a single-family residence that qualifies for an exemption under Section 11.13 must include the following statement: "Under Section 23.231, Tax Code, for the 2024, 2025, and 2026 tax years, the appraised value of real property other than a residence homestead for ad valorem tax purposes may not be increased by more than 20 percent each year, with certain exceptions. The circuit breaker limitation provided 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 25 65 under Section 23.231, Tax Code, expires December 31, 2026. Unless this expiration date is extended by the Texas Legislature, beginning in the 2027 tax year, the circuit breaker limitation provided under Section 23.231, Tax Code, will no longer be in effect and may result in an increase in ad valorem taxes imposed on real property previously subject to the limitation." This subsection expires December 31, 2027. SECTION A4.07.AA Section 41.41 (a), Tax Code, is amended to read as follows: (a)AA A property owner is entitled to protest before the appraisal review board the following actions: (1)AA determination of the appraised value of the owner ’s property or, in the case of land appraised as provided by Subchapter C, D, E, or H, Chapter 23 , determination of its appraised or market value; (2)AA unequal appraisal of the owner ’s property; (3)AA inclusion of the owner ’s property on the appraisal records; (4)AA denial to the property owner in whole or in part of a partial exemption; (4-a)AA determination that the owner ’s property does not qualify for the circuit breaker limitation on appraised value provided by Section 23.231; (5)AA determination that the owner ’s land does not qualify for appraisal as provided by Subchapter C, D, E, or H, Chapter 23 ; (6)AA identification of the taxing units in which the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 26 66 owner ’s property is taxable in the case of the appraisal district ’s appraisal roll; (7)AA determination that the property owner is the owner of property; (8)AA a determination that a change in use of land appraised under Subchapter C, D, E, or H, Chapter 23 , has occurred; or (9)AA any other action of the chief appraiser, appraisal district, or appraisal review board that applies to and adversely affects the property owner. SECTION A4.08.AA Effective January 1, 2027, Section 41.41 (a), Tax Code, is amended to read as follows: (a)AA A property owner is entitled to protest before the appraisal review board the following actions: (1)AA determination of the appraised value of the owner ’s property or, in the case of land appraised as provided by Subchapter C, D, E, or H, Chapter 23 , determination of its appraised or market value; (2)AA unequal appraisal of the owner ’s property; (3)AA inclusion of the owner ’s property on the appraisal records; (4)AA denial to the property owner in whole or in part of a partial exemption; (5)AA determination that the owner ’s land does not qualify for appraisal as provided by Subchapter C, D, E, or H, Chapter 23 ; (6)AA identification of the taxing units in which the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 27 67 owner ’s property is taxable in the case of the appraisal district ’s appraisal roll; (7)AA determination that the property owner is the owner of property; (8)AA a determination that a change in use of land appraised under Subchapter C, D, E, or H, Chapter 23 , has occurred; or (9)AA any other action of the chief appraiser, appraisal district, or appraisal review board that applies to and adversely affects the property owner. SECTION A4.09.AA Section 42.26 (d), Tax Code, is amended to read as follows: (d)AA For purposes of this section, the value of the property subject to the suit and the value of a comparable property or sample property that is used for comparison must be the market value determined by the appraisal district when the property is [a residence homestead] subject to the limitation on appraised value imposed by Section 23.23 or 23.231. SECTION A4.10.AA Effective January 1, 2027, Section 42.26 (d), Tax Code, is amended to read as follows: (d)AA For purposes of this section, the value of the property subject to the suit and the value of a comparable property or sample property that is used for comparison must be the market value determined by the appraisal district when the property is a residence homestead subject to the limitation on appraised value imposed by Section 23.23 . SECTION A4.11.AA Sections 403.302 (d) and (i), Government Code, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 28 68 are amended to read as follows: (d)AA For the purposes of this section, "taxable value" means the market value of all taxable property less: (1)AA the total dollar amount of any residence homestead exemptions lawfully granted under Section 11.13 (b) or (c), Tax Code, in the year that is the subject of the study for each school district; (2)AA one-half of the total dollar amount of any residence homestead exemptions granted under Section 11.13 (n), Tax Code, in the year that is the subject of the study for each school district; (3)AA the total dollar amount of any exemptions granted before May 31, 1993, within a reinvestment zone under agreements authorized by Chapter 312 , Tax Code; (4)AA subject to Subsection (e), the total dollar amount of any captured appraised value of property that: (A)AA is within a reinvestment zone created on or before May 31, 1999, or is proposed to be included within the boundaries of a reinvestment zone as the boundaries of the zone and the proposed portion of tax increment paid into the tax increment fund by a school district are described in a written notification provided by the municipality or the board of directors of the zone to the governing bodies of the other taxing units in the manner provided by former Section 311.003 (e), Tax Code, before May 31, 1999, and within the boundaries of the zone as those boundaries existed on September 1, 1999, including subsequent improvements to the property regardless of when made; 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 29 69 (B)AA generates taxes paid into a tax increment fund created under Chapter 311 , Tax Code, under a reinvestment zone financing plan approved under Section 311.011 (d), Tax Code, on or before September 1, 1999; and (C)AA is eligible for tax increment financing under Chapter 311 , Tax Code; (5)AA the total dollar amount of any captured appraised value of property that: (A)AA is within a reinvestment zone: (i)AA created on or before December 31, 2008, by a municipality with a population of less than 18,000; and (ii)AA the project plan for which includes the alteration, remodeling, repair, or reconstruction of a structure that is included on the National Register of Historic Places and requires that a portion of the tax increment of the zone be used for the improvement or construction of related facilities or for affordable housing; (B)AA generates school district taxes that are paid into a tax increment fund created under Chapter 311 , Tax Code; and (C)AA is eligible for tax increment financing under Chapter 311 , Tax Code; (6)AA the total dollar amount of any exemptions granted under Section 11.251 or 11.253 , Tax Code; (7)AA the difference between the comptroller ’s estimate of the market value and the productivity value of land that qualifies for appraisal on the basis of its productive capacity, except that the productivity value estimated by the comptroller may 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 30 70 not exceed the fair market value of the land; (8)AA the portion of the appraised value of residence homesteads of individuals who receive a tax limitation under Section 11.26 , Tax Code, on which school district taxes are not imposed in the year that is the subject of the study, calculated as if the residence homesteads were appraised at the full value required by law; (9)AA a portion of the market value of property not otherwise fully taxable by the district at market value because of action required by statute or the constitution of this state, other than Section 11.311 , Tax Code, that, if the tax rate adopted by the district is applied to it, produces an amount equal to the difference between the tax that the district would have imposed on the property if the property were fully taxable at market value and the tax that the district is actually authorized to impose on the property, if this subsection does not otherwise require that portion to be deducted; (10)AA the market value of all tangible personal property, other than manufactured homes, owned by a family or individual and not held or used for the production of income; (11)AA the appraised value of property the collection of delinquent taxes on which is deferred under Section 33.06 , Tax Code; (12)AA the portion of the appraised value of property the collection of delinquent taxes on which is deferred under Section 33.065 , Tax Code; (13)AA the amount by which the market value of property 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 31 71 [a residence homestead] to which Section 23.23 or 23.231, Tax Code, applies exceeds the appraised value of that property as calculated under Section 23.23 or 23.231, Tax Code, as applicable [that section]; and (14)AA the total dollar amount of any exemptions granted under Section 11.35 , Tax Code. (i)AA If the comptroller determines in the study that the market value of property in a school district as determined by the appraisal district that appraises property for the school district, less the total of the amounts and values listed in Subsection (d) as determined by that appraisal district, is valid, the comptroller, in determining the taxable value of property in the school district under Subsection (d), shall for purposes of Subsection (d)(13) subtract from the market value as determined by the appraisal district of properties [residence homesteads] to which Section 23.23 or 23.231, Tax Code, applies the amount by which that amount exceeds the appraised value of those properties as calculated by the appraisal district under Section 23.23 or 23.231, Tax Code, as applicable.AA If the comptroller determines in the study that the market value of property in a school district as determined by the appraisal district that appraises property for the school district, less the total of the amounts and values listed in Subsection (d) as determined by that appraisal district, is not valid, the comptroller, in determining the taxable value of property in the school district under Subsection (d), shall for purposes of Subsection (d)(13) subtract from the market value as estimated by the comptroller of properties [residence homesteads] to which 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 32 72 Section 23.23 or 23.231, Tax Code, applies the amount by which that amount exceeds the appraised value of those properties as calculated by the appraisal district under Section 23.23 or 23.231, Tax Code, as applicable. SECTION A4.12.AA Effective January 1, 2027, Sections 403.302 (d) and (i), Government Code, are amended to read as follows: (d)AA For the purposes of this section, "taxable value" means the market value of all taxable property less: (1)AA the total dollar amount of any residence homestead exemptions lawfully granted under Section 11.13 (b) or (c), Tax Code, in the year that is the subject of the study for each school district; (2)AA one-half of the total dollar amount of any residence homestead exemptions granted under Section 11.13 (n), Tax Code, in the year that is the subject of the study for each school district; (3)AA the total dollar amount of any exemptions granted before May 31, 1993, within a reinvestment zone under agreements authorized by Chapter 312 , Tax Code; (4)AA subject to Subsection (e), the total dollar amount of any captured appraised value of property that: (A)AA is within a reinvestment zone created on or before May 31, 1999, or is proposed to be included within the boundaries of a reinvestment zone as the boundaries of the zone and the proposed portion of tax increment paid into the tax increment fund by a school district are described in a written notification 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 33 73 provided by the municipality or the board of directors of the zone to the governing bodies of the other taxing units in the manner provided by former Section 311.003 (e), Tax Code, before May 31, 1999, and within the boundaries of the zone as those boundaries existed on September 1, 1999, including subsequent improvements to the property regardless of when made; (B)AA generates taxes paid into a tax increment fund created under Chapter 311 , Tax Code, under a reinvestment zone financing plan approved under Section 311.011 (d), Tax Code, on or before September 1, 1999; and (C)AA is eligible for tax increment financing under Chapter 311 , Tax Code; (5)AA the total dollar amount of any captured appraised value of property that: (A)AA is within a reinvestment zone: (i)AA created on or before December 31, 2008, by a municipality with a population of less than 18,000; and (ii)AA the project plan for which includes the alteration, remodeling, repair, or reconstruction of a structure that is included on the National Register of Historic Places and requires that a portion of the tax increment of the zone be used for the improvement or construction of related facilities or for affordable housing; (B)AA generates school district taxes that are paid into a tax increment fund created under Chapter 311 , Tax Code; and (C)AA is eligible for tax increment financing under Chapter 311 , Tax Code; 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 34 74 (6)AA the total dollar amount of any exemptions granted under Section 11.251 or 11.253 , Tax Code; (7)AA the difference between the comptroller ’s estimate of the market value and the productivity value of land that qualifies for appraisal on the basis of its productive capacity, except that the productivity value estimated by the comptroller may not exceed the fair market value of the land; (8)AA the portion of the appraised value of residence homesteads of individuals who receive a tax limitation under Section 11.26 , Tax Code, on which school district taxes are not imposed in the year that is the subject of the study, calculated as if the residence homesteads were appraised at the full value required by law; (9)AA a portion of the market value of property not otherwise fully taxable by the district at market value because of action required by statute or the constitution of this state, other than Section 11.311 , Tax Code, that, if the tax rate adopted by the district is applied to it, produces an amount equal to the difference between the tax that the district would have imposed on the property if the property were fully taxable at market value and the tax that the district is actually authorized to impose on the property, if this subsection does not otherwise require that portion to be deducted; (10)AA the market value of all tangible personal property, other than manufactured homes, owned by a family or individual and not held or used for the production of income; (11)AA the appraised value of property the collection of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 35 75 delinquent taxes on which is deferred under Section 33.06 , Tax Code; (12)AA the portion of the appraised value of property the collection of delinquent taxes on which is deferred under Section 33.065 , Tax Code; (13)AA the amount by which the market value of a residence homestead to which Section 23.23 , Tax Code, applies exceeds the appraised value of that property as calculated under that section; and (14)AA the total dollar amount of any exemptions granted under Section 11.35 , Tax Code. (i)AA If the comptroller determines in the study that the market value of property in a school district as determined by the appraisal district that appraises property for the school district, less the total of the amounts and values listed in Subsection (d) as determined by that appraisal district, is valid, the comptroller, in determining the taxable value of property in the school district under Subsection (d), shall for purposes of Subsection (d)(13) subtract from the market value as determined by the appraisal district of residence homesteads to which Section 23.23 , Tax Code, applies the amount by which that amount exceeds the appraised value of those properties as calculated by the appraisal district under Section 23.23 , Tax Code.AA If the comptroller determines in the study that the market value of property in a school district as determined by the appraisal district that appraises property for the school district, less the total of the amounts and values listed in Subsection (d) as determined by that appraisal district, is not 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 36 76 valid, the comptroller, in determining the taxable value of property in the school district under Subsection (d), shall for purposes of Subsection (d)(13) subtract from the market value as estimated by the comptroller of residence homesteads to which Section 23.23 , Tax Code, applies the amount by which that amount exceeds the appraised value of those properties as calculated by the appraisal district under Section 23.23 , Tax Code. SECTION A4.13.AA Section 23.231, Tax Code, as added by this article, applies only to the appraisal of real property other than a residence homestead for ad valorem tax purposes for a tax year that begins on or after the effective date of this article. ARTICLE 5. BOARDS OF DIRECTORS OF APPRAISAL DISTRICTS SECTION A5.01.AA The heading to Section 6.03 , Tax Code, is amended to read as follows: Sec.A 6.03.AA BOARD OF DIRECTORS IN LESS POPULOUS COUNTIES. SECTION A5.02.AA Section 6.03 , Tax Code, is amended by amending Subsection (a) and adding Subsection (a-1) to read as follows: (a)AA This section applies only to an appraisal district established in a county with a population of less than 75,000. (a-1)AA The appraisal district is governed by a board of directors. Five directors are appointed by the taxing units that participate in the district as provided by this section. If the county assessor-collector is not appointed to the board, the county assessor-collector serves as a nonvoting director. The county assessor-collector is ineligible to serve if the board enters into a contract under Section 6.05 (b) or if the commissioners court of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 37 77 the county enters into a contract under Section 6.24 (b). To be eligible to serve on the board of directors, an individual other than a county assessor-collector serving as a nonvoting director must be a resident of the district and must have resided in the district for at least two years immediately preceding the date the individual takes office. An individual who is otherwise eligible to serve on the board is not ineligible because of membership on the governing body of a taxing unit. An employee of a taxing unit that participates in the district is not eligible to serve on the board unless the individual is also a member of the governing body or an elected official of a taxing unit that participates in the district. SECTION A5.03.AA Subchapter A , Chapter 6, Tax Code, is amended by adding Section 6.0301 to read as follows: Sec.A 6.0301.AA BOARD OF DIRECTORS IN POPULOUS COUNTIES. (a)AA This section applies only to an appraisal district established in a county with a population of 75,000 or more. (b)AA Sections 6.031 ,6.034 , and 6.10 do not apply to an appraisal district to which this section applies. (c)AA The appraisal district is governed by a board of nine directors. Five directors are appointed by the taxing units that participate in the district in the manner prescribed by Section 6.03 . Three directors are elected by majority vote at the general election for state and county officers by the voters of the county in which the district is established.The county assessor-collector serves as an ex officio director. (d)AA To be eligible to serve on the board of directors, an 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 38 78 individual other than the county assessor-collector must be a resident of the district and must have resided in the district for at least two years immediately preceding the date the individual takes office. An individual who is otherwise eligible to serve on the board is not ineligible because of membership on the governing body of a taxing unit. An employee of a taxing unit that participates in the district is not eligible to serve on the board unless the individual is also a member of the governing body or an elected official of a taxing unit that participates in the district. (e)AA Members of the board of directors appointed by the taxing units participating in the district serve staggered four-year terms beginning on January 1 of every other even-numbered year. Elected members of the board of directors serve staggered four-year terms beginning on January 1 of every other odd-numbered year. (f)AA If a vacancy occurs in an appointive position on the board of directors, each taxing unit that is entitled to vote under Section 6.03 may nominate by resolution adopted by its governing body a candidate to fill the vacancy. The taxing unit shall submit the name of its nominee to the chief appraiser within 45 days after notification from the board of directors of the existence of the vacancy, and the chief appraiser shall prepare and deliver to the board of directors within the next five days a list of the nominees. The board of directors shall appoint by majority vote of its members one of the nominees to fill the vacancy. (g)AA If a vacancy occurs in an elective position on the board 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 39 79 of directors, the board of directors shall appoint by majority vote of its members a person to fill the vacancy. A person appointed to fill a vacancy in an elective position must have the qualifications required of a director elected at a general election. SECTION A5.04.AA Subchapter A , Chapter 6, Tax Code, is amended by adding Section 6.032 to read as follows: Sec.A 6.032.AA BALLOT PROCEDURES FOR ELECTED DIRECTORS; FILING FEE OR PETITION. (a) Except as provided by this section, Chapter 144 , Election Code, applies to a candidate for an elective position on an appraisal district board of directors. (b)AA An application for a place on the ballot must be filed with the county judge of the county in which the appraisal district is established and be accompanied by a filing fee prescribed by Subsection (c) of this section or a petition in lieu of the filing fee that satisfies the requirements prescribed by Section 141.062 , Election Code, and Subsection (d) of this section. (c)AA The filing fee for a place on the ballot is: (1)AA $400 for a county with a population of 200,000 or more; or (2)AA $200 for a county with a population of less than 200,000. (d)AA The minimum number of signatures that must appear on the petition authorized by Subsection (b) is the lesser of: (1)AA 500; or (2)AA two percent of the total vote received in the county by all the candidates for governor in the most recent gubernatorial general election, unless that number is less than 50, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 40 80 in which case the required number of signatures is the lesser of: (A)AA 50; or (B)AA 20 percent of that total vote. (e)AA A filing fee received under this section shall be deposited in the county treasury to the credit of the county general fund. (f)AA The secretary of state shall adopt rules as necessary to implement this section. SECTION A5.05.AA The heading to Section 6.033 , Tax Code, is amended to read as follows: Sec.A 6.033.AA RECALL OF APPOINTED DIRECTOR. SECTION A5.06.AA Section 6.033 (a), Tax Code, is amended to read as follows: (a)AA The governing body of a taxing unit may call for the recall of an appointed [a] member of the board of directors of an appraisal district [appointed under Section 6.03 of this code] for whom the taxing unit cast any of its votes in the appointment of the board. The call must be in the form of a resolution, be filed with the chief appraiser of the appraisal district, and state that the taxing unit is calling for the recall of the member. If a resolution calling for the recall of a board member is filed under this subsection, the chief appraiser, not later than the 10th day after the date of filing, shall deliver a written notice of the filing of the resolution and the date of its filing to the presiding officer of the governing body of each taxing unit entitled to vote in the appointment of board members. SECTION A5.07.AA Section 6.036 (a), Tax Code, is amended to 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 41 81 read as follows: (a)AA An individual is not eligible to be a candidate for, to be appointed to, or to serve on the board of directors of an appraisal district if the individual or a business entity in which the individual has a substantial interest is a party to a contract with: (1)AA the appraisal district; or (2)AA a taxing unit that participates in the appraisal district, if the contract relates to the performance of an activity governed by this title. SECTION A5.08.AA Section 6.052 (f), Tax Code, as effective January 1, 2024, is amended to read as follows: (f)AA The taxpayer liaison officer is responsible for providing clerical assistance to the applicable appointing authority prescribed by Section 6.41 (d) [local administrative district judge] in the selection of appraisal review board members and for publicizing the availability of positions on the appraisal review board. The officer shall deliver to the applicable appointing authority [local administrative district judge] any applications to serve on the board that are submitted to the officer and shall perform other duties as requested by the applicable appointing authority [local administrative district judge]. The officer may not influence the process for selecting appraisal review board members. SECTION A5.09.AA Section 6.41 , Tax Code, is amended by amending Subsections (d), (d-1), (d-2), (d-3), (d-5), (d-9), (d-10), (e), (g), (i), and (j) and adding Subsection (d-2-1) to read 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 42 82 as follows: (d)AA Members of the board are appointed by the applicable appointing authority. For an appraisal district to which Section 6.03 applies, the appointing authority is the local administrative district judge under Subchapter D, Chapter 74 , Government Code, in the county in which the appraisal district is established. For an appraisal district to which Section 6.0301 applies, the appointing authority is the board of directors of the district. A vacancy on the board is filled in the same manner for the unexpired portion of the term. (d-1)AA All applications submitted to the appraisal district or to the appraisal review board from persons seeking appointment as a member of the appraisal review board shall be delivered to the applicable appointing authority [local administrative district judge]. The appraisal district may provide the appointing authority [local administrative district judge] with information regarding whether an applicant for appointment to or a member of the board owes any delinquent ad valorem taxes to a taxing unit participating in the appraisal district. (d-2)AA A local administrative district judge acting as an appointing authority may make appointments to the board directly or may, by written order, appoint from three to five persons to perform the duties of appraisal review board commissioner. If the local administrative district judge chooses to appoint appraisal review board commissioners, each commissioner shall possess the same qualifications as those required of an appraisal review board member. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 43 83 (d-2-1)AA A board of directors acting as an appointing authority must make appointments to the appraisal review board by majority vote, with at least two members of the majority being elected members of the board of directors. (d-3)AA The applicable appointing authority [local administrative judge] shall cause the proper officer to notify appointees to the board of their appointment, and when and where they are to appear. (d-5)AA The appraisal district of the county shall provide to the applicable appointing authority [local administrative district judge], or to the appraisal review board commissioners, as the case may be, the number of appraisal review board positions that require appointment and shall provide whatever reasonable assistance is requested by the applicable appointing authority [local administrative district judge] or the commissioners. (d-9)AA In selecting individuals who are to serve as members of the appraisal review board for an appraisal district described by Subsection (b-2), the board of directors of the district [local administrative district judge] shall select an adequate number of qualified individuals to permit the chairman of the appraisal review board to fill the positions on each special panel established under Section 6.425 . (d-10)AA Upon selection of the individuals who are to serve as members of the appraisal review board, the applicable appointing authority [local administrative district judge] shall enter an appropriate order designating such members and setting each member ’s respective term of office, as provided elsewhere in this 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 44 84 section. (e)AA Members of the board hold office for terms of two years beginning January 1.AA The appraisal district board of directors by resolution shall provide for staggered terms, so that the terms of as close to one-half of the members as possible expire each year.AA In making the initial or subsequent appointments, the applicable appointing authority, or the local administrative district [judge or the] judge ’s designee if the appointing authority is the judge, shall designate those members who serve terms of one year as needed to comply with this subsection. (g)AA Subsection (a) does not preclude the boards of directors of two or more adjoining appraisal districts from providing for the operation of a consolidated appraisal review board by interlocal contract.AA Members of a consolidated appraisal review board are appointed jointly by the applicable appointing authorities [local administrative district judges] in the counties in which the appraisal districts that are parties to the contract are established. (i)AA A chief appraiser or another employee or agent of the appraisal district, a member of the appraisal review board for the appraisal district, a member of the board of directors of the appraisal district if the board is established for a district to which Section 6.03 applies, a property tax consultant, or an agent of a property owner commits an offense if the person communicates with the applicable appointing authority [local administrative district judge] regarding the appointment of appraisal review board members.AA This subsection does not apply to: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 45 85 (1)AA a communication between a member of the appraisal review board and the applicable appointing authority [local administrative district judge] regarding the member ’s reappointment to the board; (2)AA a communication between the taxpayer liaison officer for the appraisal district and the applicable appointing authority [local administrative district judge] in the course of the performance of the officer ’s clerical duties so long as the officer does not offer an opinion or comment regarding the appointment of appraisal review board members; (3)AA a communication between a chief appraiser or another employee or agent of the appraisal district, a member of the appraisal review board for the appraisal district, or a member of the board of directors of the appraisal district if the board is established for a district to which Section 6.03 applies and the applicable appointing authority [local administrative district judge] regarding information relating to or described by Subsection (d-1), (d-5), or (f) of this section or Section 411.1296 , Government Code; (4)AA a communication between a property tax consultant or a property owner or an agent of the property owner and the taxpayer liaison officer for the appraisal district regarding information relating to or described by Subsection (f). The taxpayer liaison officer for the appraisal district shall report the contents of the communication relating to or described by Subsection (f) to the applicable appointing authority [local administrative district judge]; or 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 46 86 (5)AA a communication between a property tax consultant or a property owner or an agent of the property owner and the applicable appointing authority [local administrative district judge] regarding information relating to or described by Subsection (f). (j)AA A chief appraiser or another employee or agent of an appraisal district commits an offense if the person communicates with a member of the appraisal review board for the appraisal district, a member of the board of directors of the appraisal district, or the local administrative district judge, if the judge is the appointing authority for the district, regarding a ranking, scoring, or reporting of the percentage by which the appraisal review board or a panel of the board reduces the appraised value of property. SECTION A5.10.AA Section 6.41 (f), Tax Code, as amended by Chapters 354 (H.B. 2941) and 533 (S.B. 63), Acts of the 87th Legislature, Regular Session, 2021, is reenacted and amended to read as follows: (f)AA A member of the appraisal review board may be removed from the board by the applicable appointing authority, or the local administrative district [judge or the] judge ’s designee if the appointing authority is the judge. Not later than the 90th day after the date the board of directors, local administrative district judge, or judge ’s designee that appointed a member of the appraisal review board learns of a potential ground for removal of the member, the board of directors, local administrative district judge, or judge ’s designee, as applicable, shall remove the member 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 47 87 or find by official action that the member ’s removal is not warranted. Grounds for removal are: (1)AA a violation of Section 6.412 ,6.413 ,41.66 (f), or 41.69 ; (2)AA good cause relating to the attendance of members at called meetings of the board as established by written policy adopted by a majority of the appraisal district board of directors; or (3)AA evidence of repeated bias or misconduct. SECTION A5.11.AA Section 6.42 (a), Tax Code, is amended to read as follows: (a)AA A majority of the appraisal review board constitutes a quorum. The applicable appointing authority prescribed by Section 6.41 (d) [local administrative district judge under Subchapter D , Chapter 74 , Government Code,] in the county in which the appraisal district is established shall select a chairman and a secretary from among the members of the appraisal review board. The applicable appointing authority [judge] is encouraged to select as chairman a member of the appraisal review board, if any, who has a background in law and property appraisal. SECTION A5.12.AA Section 6.425 (e), Tax Code, is amended to read as follows: (e)AA Notwithstanding Subsection (d), the chairman of the appraisal review board may appoint to a special panel described by this section a member of the appraisal review board who does not meet the qualifications prescribed by that subsection if: (1)AA the number of persons appointed to the board [by 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 48 88 the local administrative district judge] who meet those qualifications is not sufficient to fill the positions on each special panel; and (2)AA the board member being appointed to the panel holds a bachelor ’s degree in any field. SECTION A5.13.AA (a)AA Appraisal district directors shall be elected to the elective positions as provided by Section 6.0301, Tax Code, as added by this article, beginning with the election conducted on the uniform election date in May 2024. The directors then elected take office on July 1, 2024, and serve a term that expires on December 31, 2026. (b)AA Following the election of the initial elected directors of an appraisal district as provided by Subsection (a) of this section, directors shall be elected as provided by Section 6.0301, Tax Code, as added by this article, beginning with the general election conducted in November 2026. Directors then elected take office January 1, 2027. (c)AA At the first meeting of the board of directors of an appraisal district described by Section 6.0301, Tax Code, as added by this article, that follows the November 2026 general election of directors under that section, the three elected directors shall draw lots to determine which director shall serve a term of two years and which two directors shall serve a term of four years. Thereafter, all elected directors serve four-year terms. (d)AA The term of an appraisal district director serving on December 31, 2024, on the board of directors of an appraisal district described by Section 6.0301, Tax Code, as added by this 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 49 89 article, expires on January 1, 2025. Not later than December 31, 2024, the taxing units participating in the appraisal district that are entitled to appoint directors shall appoint five directors to serve terms that begin on January 1, 2025. Two directors shall be appointed to serve a term of one year, and three directors shall be appointed to serve a term of three years. Thereafter, all appointed directors serve four-year terms. ARTICLE 6. TRANSITIONAL TAX YEAR PROVISIONS SECTION A6.01.AA Section 25.23 , Tax Code, is amended by adding Subsection (a-1) to read as follows: (a-1)AA This subsection applies only to the appraisal records for the 2023 tax year. The chief appraiser shall prepare supplemental appraisal records to account for the changes in law made by S.B.A 2, Acts of the 88th Legislature, 2nd Called Session, 2023. This subsection expires December 31, 2024. SECTION A6.02.AA Section 26.04 , Tax Code, is amended by adding Subsections (a-1) and (c-1) to read as follows: (a-1)AA On receipt of the appraisal roll for the 2023 tax year, the assessor for a taxing unit shall determine the total taxable value of property taxable by the taxing unit and the taxable value of new property as if the changes in law made by S.B.A2, Acts of the 88th Legislature, 2nd Called Session, 2023, were in effect for that tax year. This subsection expires December 31, 2024. (c-1)AA An officer or employee designated by the governing body of a taxing unit shall calculate the no-new-revenue tax rate and the voter-approval tax rate of the taxing unit for the 2023 tax year as if the changes in law made by S.B.A2, Acts of the 88th 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 50 90 Legislature, 2nd Called Session, 2023, were in effect for that tax year. This subsection expires December 31, 2024. SECTION A6.03.AA Chapter 26 , Tax Code, is amended by adding Section 26.0401 to read as follows: Sec.A 26.0401.AA CALCULATION OF CERTAIN TAX RATES FOR 2023 TAX YEAR. (a)AA For the purposes of calculating the no-new-revenue tax rate, the voter-approval tax rate, and any related tax rate for the 2023 tax year, a taxing unit that calculates those rates under a provision of law other than Section 26.04 or 26.08 shall calculate those rates as if the changes in law made by S.B.A 2, Acts of the 88th Legislature, 2nd Called Session, 2023, were in effect for that tax year. (b)AA This section expires December 31, 2024. SECTION A6.04.AA Section 26.08 , Tax Code, is amended by adding Subsection (q) to read as follows: (q)AA For purposes of this section, the voter-approval tax rate of a school district for the 2023 tax year shall be calculated as if the changes in law made by S.B.A2, Acts of the 88th Legislature, 2nd Called Session, 2023, were in effect for that tax year. This subsection expires December 31, 2024. SECTION A6.05.AA Section 26.09 , Tax Code, is amended by adding Subsection (c-1) to read as follows: (c-1)AA The assessor for a taxing unit shall calculate the amount of tax imposed by the taxing unit on property for the 2023 tax year as if the changes in law made by S.B.A2, Acts of the 88th Legislature, 2nd Called Session, 2023, were in effect for that tax year and also as if the changes in law made by that Act were not in 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 51 91 effect for that tax year. This subsection expires December 31, 2024. SECTION A6.06.AA Section 26.15 , Tax Code, is amended by adding Subsection (h) to read as follows: (h)AA The assessor for a taxing unit shall correct the tax roll for the taxing unit for the 2023 tax year to reflect the results of the election to approve the constitutional amendment proposed by H.J.R.A 2, 88th Legislature, 2nd Called Session, 2023. This subsection expires December 31, 2024. SECTION A6.07.AA Section 31.01 , Tax Code, is amended by adding Subsections (d-2), (d-3), (d-4), and (d-5) to read as follows: (d-2)AA This subsection and Subsections (d-3) and (d-4) apply only to taxes imposed by a taxing unit on property for the 2023 tax year and only if the changes in law made by S.B.A 2, Acts of the 88th Legislature, 2nd Called Session, 2023, would lower the taxes imposed by the taxing unit on the property for that tax year. The assessor for the taxing unit shall compute the amount of taxes imposed and the other information required by this section as if the changes in law made by S.B.A2, Acts of the 88th Legislature, 2nd Called Session, 2023, were in effect for that tax year. The tax bill or the separate statement must indicate that the bill is a provisional tax bill and include a statement in substantially the following form: "If the Texas Legislature had not enacted property tax relief legislation during the 2023 legislative session, your tax bill would have been $____ (insert amount of tax bill if the changes in law made by S.B.A 2, Acts of the 88th Legislature, 2nd Called 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 52 92 Session, 2023, were not in effect for that tax year). Because of action by the Texas Legislature, your tax bill has been lowered by $____ (insert difference between amount of tax bill if the changes in law made by S.B.A2, Acts of the 88th Legislature, 2nd Called Session, 2023, were not in effect for that tax year and amount of tax bill if that Act were in effect for that tax year), resulting in a lower tax bill of $____ (insert amount of tax bill if the changes in law made by S.B.A2, Acts of the 88th Legislature, 2nd Called Session, 2023, were in effect for that tax year), contingent on the approval by the voters at an election to be held November 7, 2023, of the constitutional amendment proposed by H.J.R.A 2, 88th Legislature, 2nd Called Session, 2023. If that constitutional amendment is not approved by the voters at the election, a supplemental tax bill in the amount of $____ (insert difference between amount of tax bill if the changes in law made by S.B.A2, Acts of the 88th Legislature, 2nd Called Session, 2023, were not in effect for that tax year and amount of tax bill if that Act were in effect for that tax year) will be mailed to you." (d-3)AA A tax bill prepared by the assessor for a taxing unit as provided by Subsection (d-2) and mailed as provided by Subsection (a) is considered to be a provisional tax bill until the canvass of the votes on the constitutional amendment proposed by H.J.R.A2, 88th Legislature, 2nd Called Session, 2023. If the constitutional amendment is approved by the voters, the tax bill is considered to be a final tax bill for the taxes imposed on the property for the 2023 tax year, and no additional tax bill is required to be mailed unless another provision of this title 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 53 93 requires the mailing of a corrected tax bill. If the constitutional amendment is not approved by the voters: (1)AA a tax bill prepared by the assessor as provided by Subsection (d-2) is considered to be a final tax bill but only as to the portion of the taxes imposed on the property for the 2023 tax year that are included in the bill; (2)AA the amount of taxes imposed by each taxing unit on property for the 2023 tax year is calculated as if the changes in law made by S.B.A 2, Acts of the 88th Legislature, 2nd Called Session, 2023, were not in effect for that tax year; and (3)AA except as provided by Subsections (f), (i-1), and (k), the assessor for each taxing unit shall prepare and mail a supplemental tax bill, by December 1 or as soon thereafter as practicable, in an amount equal to the difference between the amount of the tax bill if the changes in law made by S.B.A 2, Acts of the 88th Legislature, 2nd Called Session, 2023, were not in effect for that tax year and the amount of the tax bill if that Act were in effect for that tax year. (d-4)AA Except as otherwise provided by Subsection (d-3), the provisions of this section other than Subsection (d-2) apply to a supplemental tax bill mailed under Subsection (d-3). (d-5)AA This subsection and Subsections (d-2), (d-3), and (d-4) expire December 31, 2024. SECTION A6.08.AA Section 31.02 , Tax Code, is amended by adding Subsection (a-1) to read as follows: (a-1)AA Except as provided by Subsection (b) of this section and Sections 31.03 and 31.04 , taxes for which a supplemental tax 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 54 94 bill is mailed under Section 31.01 (d-3) are due on receipt of the tax bill and are delinquent if not paid before March 1 of the year following the year in which imposed. This subsection expires December 31, 2024. ARTICLE 7. CONTINGENT ON PASSAGE OF FRANCHISE TAX REFORM LEGISLATION SECTION A7.01.AA This Act takes effect only if S.B.A 3 or similar legislation of the 88th Legislature, 2nd Called Session, 2023, relating to the amount of the total revenue exemption for the franchise tax and the exclusion of certain taxable entities from the requirement to file a franchise tax report becomes law in a manner described by Section 2001.006 (a)(2), Government Code. If legislation described by this section does not become law in a manner described by Section 2001.006 (a)(2), Government Code, this Act has no effect. ARTICLE 8. EFFECTIVE DATES SECTION A8.01.AA Except as provided by Article 7 of this Act, this Act takes effect as provided by this article. SECTION A8.02.AA Except as otherwise provided by this article, this Act takes effect on the 91st day after the last day of the legislative session. SECTION A8.03.AA Article 2 of this Act takes effect on the date on which the constitutional amendment proposed by H.J.R.A2, 88th Legislature, 2nd Called Session, 2023, is approved by the voters. If that amendment is not approved by the voters, Article 2 of this Act has no effect. SECTION A8.04.AA (a) Except as provided by Subsection (b) of 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 55 95 this section or as otherwise provided by Article 3 of this Act: (1)AA Article 3 of this Act takes effect on the date on which the constitutional amendment proposed by H.J.R.A 2, 88th Legislature, 2nd Called Session, 2023, takes effect; and (2)AA if that amendment is not approved by the voters, Article 3 of this Act has no effect. (b)AA Sections 49.004 (a-1), (b-1), and (c-1), 49.0042, 49.0121,49.154 (a-2) and (a-3), and 49.308 (a-1), Education Code, as added by Article 3 of this Act, take effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39 , Article III, Texas Constitution. If this Act does not receive the vote necessary for those sections to have immediate effect, those sections take effect on the 91st day after the last day of the legislative session. SECTION A8.05.AA Article 4 of this Act takes effect January 1, 2024, but only if the constitutional amendment proposed by H.J.R.A2, 88th Legislature, 2nd Called Session, 2023, is approved by the voters. If that amendment is not approved by the voters, Article 4 of this Act has no effect. SECTION A8.06.AA (a) Article 5 of this Act takes effect as provided by Subsections (b) and (c) of this section, but only if the constitutional amendment proposed by H.J.R.A 2, 88th Legislature, 2nd Called Session, 2023, is approved by the voters. If that amendment is not approved by the voters, Article 5 of this Act has no effect. (b)AA Except as provided by Subsection (c) of this section, Article 5 of this Act takes effect July 1, 2024. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 S.B.A No.A 2 56 96 (c)AA Sections 5.04 and 5.13 of this Act take effect on the 91st day after the last day of the legislative session. SECTION A8.07.AA Article 6 of this Act takes effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39 , Article III, Texas Constitution. If this Act does not receive the vote necessary for that article to have immediate effect, Article 6 of this Act takes effect on the 91st day after the last day of the legislative session. 1 2 3 4 5 6 7 8 9 S.B.A No.A 2 57 97 ____________________________________________________________ President of the Senate AAAAAAAAAAAAA Speaker of the House I hereby certify that S.B.ANo.A2 passed the Senate on July A12,A2023, by the following vote:AA Yeas A31, Nays A0. ______________________________ AAAA Secretary of the Senate I hereby certify that S.B.A No.A 2 passed the House on July A13,A2023, by the following vote:AA Yeas A 133, Nays A4, zero present not voting. ______________________________ AAAA Chief Clerk of the House Approved: ______________________________ AAAAAAAAAAAAA Date ______________________________ AAAAAAAAAAA Governor S.B.A No.A 2 58 98 FY 22/23 Council Requests Number of Requests Per Quarter Total Requests Made by Council Member Requests by Department Please Note: the total number of requests per council member or department may not match, as several council members and/ or departments may be associated with a single request. Council Requests 10 Number of Pending Requests by Council Member 99 Friday Report - Council RequestsSummary of RequestCouncil Member Requestor Date Received Staff AssignedDepartmentCommentsActionStatus1Investigate tree death/removal near Ryan Rd andWhisperwoodCouncil Member Holland08/22/23Gary Packan, Scott McDonald Development Services ParksInformation will be included in afuture Friday Report.In Progress2Reporting noxious bleach odors and impacts Mayor Pro Tem Beck08/21/23Kenneth Hedges, MichaelGangeEnvironmental Services FireInformation will be included in afuture Friday Report.In Progress3Inquiry into Bocce Court zoning for Robson Ranch Council Member Holland08/23/23Scott McDonaldDevelopment ServicesInformation will be included inAugust 25th Friday Report.Complete4Review Shady Shores RoadwayCouncil Member Byrd08/22/23Becky Diviney, Trevor Crain Capital Projects/Engineering/Public Works Area of concern is within Townof Shady Shores/Corinth.Complete5Process for board member resignationCouncil Member Byrd08/22/23Jesus SalazarCity Secretary's OfficeReferred to the City Secretary'sOffice.Complete6Address multiple water meter concerns andassociated credits at a business addressMayor Pro Tem Beck08/22/23Christa Foster, Stephen Gay Customer Service WaterReferred to Water Utilities. Complete7Process for water repairs at North Texas Fair Mayor Hudspeth08/21/23Stephen GayWaterInformation included in August25th Friday Report.Complete8Inquiry into Airport Committee nomination status Council Member Byrd08/18/23Jesus SalazarCity Secretary's OfficeReferred to the City Secretary'sOffice.Complete9Inquiry into crosswalk possibilities at McKinney Stand Jannie St to CourthouseMayor Hudspeth08/17/23Becky DivineyCapital Projects/Engineering/Public Works Information included in theAugust 25 Friday Report.Complete10Inquiry into Westgate and Bronco Way no right turnand no u turn optionsCouncil Member Meltzer08/17/23Becky DivineyCapital Projects/Engineering/Public Works Information included in theAugust 25 Friday Report.CompletePage 1 of 1Exported on August 25, 2023 3:52:43 PM CDT100 Meeting Calendar City of Denton City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Criteria : Begin Date: 8/1/2023, End Date: 10/31/2023 Date Time Meeting LocationMeeting Body August 2023 8/1/2023 11:00 AM City Council Development Service Center 8/1/2023 11:00 AM Northeast Denton Area Plan Steering Committee Development Service Center 8/1/2023 11:00 AM Planning and Zoning Commission Development Service Center 8/1/2023 2:00 PM City Council Council Work Session Room & Council Chambers 8/3/2023 8:00 AM Agenda Committee CANCELLED 8/3/2023 8:30 AM Economic Development Partnership Board Development Service Center 8/3/2023 4:00 PM Public Art Committee Civic Center Community Room 8/4/2023 12:00 PM City Council Chamber Testing 8/5/2023 9:00 AM City Council Council Work Session Room 8/7/2023 5:30 PM Board of Ethics Council Work Session Room 8/7/2023 6:00 PM Parks, Recreation and Beautification Board Civic Center Community Room 8/8/2023 9:00 AM Committee on the Environment Council Work Session Room 8/9/2023 11:00 AM Economic Development Partnership Board CANCELLED 8/9/2023 3:00 PM Airport Advisory Board Airport Terminal Meeting Room 8/9/2023 5:00 PM Planning and Zoning Commission Council Work Session Room & Council Chambers 8/10/2023 1:00 PM Health & Building Standards Commission Development Service Center 8/11/2023 12:00 PM Community Services Advisory Committee Development Service Center 8/11/2023 1:00 PM Bond Oversight Committee Development Service Center 8/11/2023 3:00 PM Animal Shelter Advisory Committee Animal Services Training Room 8/14/2023 9:00 AM Public Utilities Board Council Work Session Room 8/14/2023 10:00 AM Development Code Review Committee Development Service Center Page 1City of Denton Printed on 8/18/2023 101 Date Time Meeting LocationMeeting Body Meeting Calendar continued... 8/14/2023 5:30 PM Historic Landmark Commission CANCELLED 8/14/2023 5:30 PM Library Board Emily Fowler Central Library 8/15/2023 1:00 PM City Council Council Work Session Room & Council Chambers 8/23/2023 8:00 AM Mobility Committee Council Work Session Room 8/23/2023 1:00 PM Civil Service Commission City Hall East Human Resources Training Room 8/23/2023 5:00 PM Planning and Zoning Commission Council Work Session Room & Council Chambers 8/25/2023 1:00 PM Sustainability Framework Advisory Committee Council Work Session Room 8/25/2023 6:00 PM Southeast Denton Area Plan Steering Committee Development Service Center 8/28/2023 9:00 AM Public Utilities Board Council Work Session Room 8/28/2023 10:00 AM Development Code Review Committee Development Service Center 8/28/2023 5:30 PM Zoning Board of Adjustment CANCELLED September 2023 9/7/2023 8:00 AM Agenda Committee Council Work Session Room 9/7/2023 8:30 AM Economic Development Partnership Board Development Service Center Training Rooms 9/11/2023 9:00 AM Public Utilities Board Council Work Session Room 9/11/2023 10:00 AM Development Code Review Committee Development Service Center 9/11/2023 5:30 PM Historic Landmark Commission Development Service Center 9/11/2023 5:30 PM Library Board North Branch Library 9/11/2023 6:00 PM Parks, Recreation and Beautification Board Civic Center Community Room 9/12/2023 9:00 AM Committee on the Environment Council Work Session Room 9/12/2023 2:00 PM City Council Council Work Session Room & Council Chambers 9/13/2023 11:00 AM Economic Development Partnership Board Development Service Center Training Rooms 9/13/2023 3:00 PM Airport Advisory Board Airport Terminal Meeting Room 9/14/2023 3:00 PM Health & Building Standards Commission CANCELLED 9/19/2023 2:00 PM City Council Council Work Session Room & Council Chambers Page 2City of Denton Printed on 8/18/2023 102 Date Time Meeting LocationMeeting Body Meeting Calendar continued... 9/22/2023 1:00 PM Sustainability Framework Advisory Committee Council Work Session Room 9/25/2023 9:00 AM Public Utilities Board Council Work Session Room 9/25/2023 10:00 AM Development Code Review Committee Development Service Center 9/25/2023 5:30 PM Zoning Board of Adjustment Development Service Center 9/26/2023 2:00 PM City Council Council Work Session Room & Council Chambers 9/27/2023 8:00 AM Mobility Committee Council Work Session Room 9/27/2023 12:00 PM Downtown Denton Tax Increment Financing Zone No. 1 Board Development Service Center Training Rooms 9/27/2023 5:00 PM Planning and Zoning Commission Council Work Session Room & Council Chambers October 2023 10/2/2023 6:00 PM Parks, Recreation and Beautification Board Civic Center Community Room 10/5/2023 8:00 AM Agenda Committee Council Work Session Room 10/5/2023 8:30 AM Economic Development Partnership Board Development Service Center Training Rooms 10/5/2023 4:00 PM Public Art Committee Civic Center Community Room 10/9/2023 9:00 AM Public Utilities Board Council Work Session Room 10/9/2023 10:00 AM Development Code Review Committee Development Service Center 10/9/2023 5:30 PM Historic Landmark Commission Development Service Center 10/9/2023 5:30 PM Library Board South Branch Library 10/10/2023 9:00 AM Committee on the Environment Council Work Session Room 10/11/2023 11:00 AM Economic Development Partnership Board Development Service Center Training Rooms 10/11/2023 3:00 PM Airport Advisory Board Airport Terminal Meeting Room 10/11/2023 5:00 PM Planning and Zoning Commission Council Work Session Room & Council Chambers 10/12/2023 3:00 PM Health & Building Standards Commission Development Service Center 10/16/2023 5:30 PM Traffic Safety Commission Development Service Center 10/17/2023 2:00 PM City Council Council Work Session Room & Council Chambers 10/23/2023 10:00 AM Development Code Review Committee Development Service Center Page 3City of Denton Printed on 8/18/2023 103 Date Time Meeting LocationMeeting Body Meeting Calendar continued... 10/24/2023 2:00 PM City Council Council Work Session Room & Council Chambers 10/25/2023 8:00 AM Mobility Committee Council Work Session Room 10/25/2023 5:00 PM Planning and Zoning Commission Council Work Session Room & Council Chambers 10/27/2023 1:00 PM Sustainability Framework Advisory Committee Council Work Session Room 10/30/2023 5:30 PM Zoning Board of Adjustment Development Service Center Page 4City of Denton Printed on 8/18/2023 104 City of Denton Meeting Agenda City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com City Council Council Work Session Room2:00 PMTuesday, September 12, 2023 Budget Workshop WORK SESSION BEGINS AT 2:00 P.M. IN THE COUNCIL WORK SESSION ROOM CLOSED MEETING BEGINS IMMEDIATELY FOLLOWING THE WORK SESSION IN THE COUNCIL WORK SESSION ROOM After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, September 12, 2023 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. Work Session Reports Receive a report, hold a discussion, and give staff direction regarding City Council Key Focus Areas and Specific Priorities for FY 2023-24. [Estimated Presentation/Discussion Time: 1 hour] ID 23-1596A. Receive a report, hold a discussion, and give staff direction regarding the preliminary FY 2023-24 Proposed Budget, Tax Rate, Capital Improvement Program and Five-Year Financial Forecast. [Estimated Presentation/Discussion Time: 1 hour] ID 23-1407B. Following the completion of the Work Session, the City Council will convene in a Closed Meeting in the Council Work Session Room 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: -- PLACEHOLDER IN THE EVENT A CLOSED MEETING IS NEEDED; OTHERWISE, WILL BE DELETED. -- Following the Closed Meeting, the City Council will reconvene in Open Meeting to take action, if any, on matters discussed in closed session. Note: 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. Page 1 Printed on 8/25/2023105 September 12, 2023City Council Meeting Agenda C E R T I F I C A T E I certify that the above notice of meeting was posted on the official website (https://tx-denton.civicplus.com/242/Public-Meetings-Agendas) and bulletin board at City Hall, 215 E. McKinney Street, Denton, Texas, on September 8, 2023, in advance of the 72-hour posting deadline, as applicable, and in accordance with Chapter 551 of the Texas Government Code. __________________________________________ OFFICE OF THE 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 2 Printed on 8/25/2023106 Meeting Date Item Legistar ID Departments Involved Type Estimated Time September 5, 2023 A. Focus Areas & Priorities 23-1596 City Manager's Office City Business 1:00 B. Budget Follow-up 23-1407 Finance City Business 1:00 Closed Meeting Item(s):TBD Legal (if any)City Business 0:30 Total Est. Time: 2:30 A. Audit Project 033 - Pedestrian & Cyclist Safety 23-425 Internal Audit City Business 0:30 B. Aquatics Master Plan 23-683 Parks & Recreation City Business 0:30 C. Election Day Holiday 23-1403 Human Resources Council Request 0:30 D. Stormwater Master Plan 23-1123 Engineering City Business 0:45 E. Polling Location 23-1628 City Secretary's Office City Business 0:30 F. Two-Minute Pitch: 23-222 City Manager's Office Council Request 0:30 Closed Meeting Item(s): TBD Legal (if any)City Business 0:30 Total Est. Time: 3:45 A. Audit Project 034 - Fire Prevention 23-593 Internal Audit City Business 0:30 B. Audit Project 007 - Accounts Payable: Second Follow-Up Review 23-595 Internal Audit City Business 0:15 C. Audit Project 014 – Facilities Maintenance: Second Follow-Up Review 23-925 Internal Audit City Business 0:15 D. Climate Action and Adaptation Plan 23-937 Env. Svcs. & Sustainability City Business 1:00 E. Two-Minute Pitch: 23-223 City Manager's Office Council Request 0:30 Closed Meeting Item(s): TBD Legal (if any)City Business 0:30 Total Est. Time: 3:00 October 3, 2023 A. Northeast Denton Area Plan 23-1194 Planning City Business 2:00 Closed Meeting Item(s): TBD Legal (if any)City Business 0:30 Total Est. Time: 2:30 A. Facilities Master Plan 23-1544 Facilities City Business 1:00 B. Roadway Impact Fees 23-1125 Engineering City Business 1:00 C. Two-Minute Pitch: 23-224 City Manager's Office Council Request 0:30 Closed Meeting Item(s): TBD Legal (if any)City Business 0:30 Total Est. Time: 3:00 A. Final Wastewater Master Plan 23-1575 Water Utilities City Business TBD B. Public Health Official TBD City Manager's Office Council Request Beck (06/6/2023)TBD C. Street Lights Criteria Manual 23-1601 DME City Business 0:45 D. Two-Minute Pitch: 23-225 City Manager's Office Council Request 0:30 Closed Meeting Item(s): TBD Legal (if any)City Business 0:30 Total Est. Time: 1:45 A. - Place Holder 23-594 23-594 City Business 0:30 B. - Place Holder 23-466 23-466 City Business 0:30 C. - Place Holder 23-456 23-456 City Business 0:30 Closed Meeting Item(s): TBD TBD City Business 0:30 Total Est. Time: 2:00 A. Audit Project 035 Staff Recruitment & Hiring 23-594 Internal Audit City Business 0:30 B. DCTA Quarterly Update 23-466 Engineering City Business 0:30 C. MUDs and MMDs 23-652 Development Services City Business 1:00 D. Two-Minute Pitch: 23-226 City Manager's Office Council Request 0:30 Closed Meeting Item(s): TBD Legal (if any)City Business 0:30 Total Est. Time: 3:00 A. Two-Minute Pitch: 23-227 City Manager's Office Council Request 0:30 Closed Meeting Item(s): TBD Legal (if any)City Business 0:30 Total Est. Time: 1:00 November 21, 2023 A. Future Charter Election 23-1634 City Manager's Office Council Request 0:45 B. Two-Minute Pitch: 23-228 City Manager's Office Council Request 0:30 Closed Meeting Item(s): TBD Legal (if any)City Business 0:30 Total Est. Time: 1:45 A. Two-Minute Pitch: 23-229 City Manager's Office Council Request 0:30 Closed Meeting Item(s): TBD Legal (if any)City Business 0:30 Total Est. Time: 1:00 December 19, 2023 Item Legistar ID Departments Type Estimated Work Session Date Wildlife Corridors 23-1057 Environmental Services & Sustainability City Business 0:30 Downtown Public Improvement District TBD Economic Development City Business TBD Denton Renewable Resource Plan TBD DME City Business TBD Item Dates Departments Type Estimated Work Item Date Approved Department Estimated Hours to Complete Requestor RFP for a Downtown Parking Survey 10-18-2022 Economic Development TBD CM Davis Towing Enforcement Signage 2-7-2023 Capital Projects TBD CM DavisApproved Council Pitches to be Scheduled Work Session Items to be Determined Council Priorities and Significant Work Plan Items to be Scheduled Tentative Work Session Topics and Meeting Information Updated: August 25, 2023 NO MEETING - December Break December 5 Work Session (@2:00 p.m.) Regular Meeting (@6:30 p.m.) Other Major Items for Meeting: December 12 Work Session (@2:00 p.m.) Special Called Meeting (@6:30 p.m.) Other Major Items for Meeting: NO MEETING - Day after Labor Day (Sept 4) NO MEETING - National Night Out NO MEETING - Thanksgiving Week November 7 Work Session (@2:00 p.m.) Regular Meeting (@6:30 p.m.) Other Major Items for Meeting: November 14 Work Session (@2:00 p.m.) Special Called Meeting (@6:30 p.m.) Other Major Items for Meeting: September 26 Work Session (@2:00 p.m.) Special Called Meeting (@6:30 p.m.) Other Major Items for Meeting: October 17 Work Session (@2:00 p.m.) Regular Meeting (@6:30 p.m.) Other Major Items for Meeting: October 24 Work Session (@2:00 p.m.) Special Called Meeting (@6:30 p.m.) Other Major Items for Meeting: September 12 Work Session (@2:00 p.m.) Other Major Items for Meeting: September 19 Work Session (@2:00 p.m.) Regular Meeting (@6:30 p.m.) Other Major Items for Meeting: October 17, 2023 Joint Council with Planning & Zoning Commission Workshop (@ 11:00 a.m.) At the Development Service Center November 7 Joint Meeting with DISD (@11:30 a.m.) At the Development Service Center *This is for planning purposes only. Dates are subject to change.107 1 Street Closure Report: Upcoming ClosuresSCR Aug 28th - Sep 3rdStreet/ IntersectionFromToClosure StartDateClosure EndDateDescriptionDepartmentDepartment Contact1Avenue CEagle DriveHighland Street08/28/23 09/29/23 Relocation of gas lines.AtmosGregory McCutchen2Chestnut St & Ave DNorth Texas BlvdAvenue C08/28/23 09/29/23 Relocation of gas lines.AtmosGregory McCutchen3Leslie StWillowwood StDudley St08/31/23 01/08/24 Utility installations and pavement replacement. EngineeringScott Fettig4Nicosia StHighway 77Santos Dr09/11/23 10/06/23 This work belongs to the Northwest BoosterPump Station Project. The contractor will beexcavating across Nicosia St. so that they maytie into the 42" water line in the center of theroad way. The excavation along with roadwayrestoration and repairs will take approx 28 daysto complete but, has the possibility of beinglesser if no issues are uncovered duringexcavation. A message board will be displayed1 week prior to closure informing the residentswho do not receive these updates. Detours willbe provided and maintained throughout theconstruction.OtherColton Garrett5Underwood St.North Texas Blvd.Kendolph Dr.08/28/23 10/16/23 Pavement replacement.EngineeringScott Fettig Exported on August 25, 2023 11:19:35 AM CDT108 2 Street Closure Report: Current ClosuresStreet/ IntersectionFromToClosure StartDateClosure EndDateDescriptionDepartmentDepartment Contact1Augusta DrColonial DrAugusta Dr (2900)07/11/22 09/15/23 Utility installations andpavement replacement.EngineeringScott Fettig2Avenue SPrairie StDead End South03/06/23 08/31/23 Utility installations andpavement replacement.EngineeringScott Fettig3Azalea StParvin StLaurel St05/30/23 09/30/23 Utility installations andpavement replacement.EngineeringScott Fettig4Bailey StWilson StDead End South01/30/23 08/31/23 Utility installations andpavement replacement.EngineeringScott Fettig5Bell AveSycamore StPrairie St08/21/23 09/04/23 Utility installations andpavement replacement.EngineeringScott Fettig6Bernard StAcme StRoselawn Dr05/30/23 09/01/23 Utility installations andpavement replacement.EngineeringScott Fettig7Bonnie Brae StRiney RdUniversity Dr (HW 380)04/24/23 08/30/23 8” WL Utility Trench Repair Private Development PublicWorks InspectionsJeremiah Tillman-David8Bradshaw StWilson StPrairie St01/30/23 10/31/23 Utility installations andpavement replacement.EngineeringScott Fettig9Bradshaw StPrairie StSycamore St03/13/23 10/31/23 Utility installations andpavement replacement.EngineeringScott Fettig10Brook Hollow DrGreenway DrCarriage Hill Rd10/07/22 09/15/23 Utility installations andpavement replacement.EngineeringScott Fettig11Buena Vista DrMontecito DrCul-De-Sac08/14/23 09/15/23 re construct roadwayStreetsJeff Jones12Camellia StParvin StLaurel St05/30/23 09/30/23 Utility installations andpavement replacement.EngineeringScott Fettig13Carriage Hill RdThunderbird DrBrookhollow Dr06/05/23 09/15/23 Pavement replacement. EngineeringScott Fettig14Carroll BlvdHickory StEagle Dr07/03/23 09/07/23 Atmos, Relocation Work for CIPProjects. Restoration of RoadPanels and SW PanelsEngineering Public WorksInspectionsSheldon Gatewood15Chaparral CtCooper Branch EDead End08/14/23 09/25/23 Utility ReplacementEngineeringTaylor Holt16Collins StJohnson StWest to Dead End08/22/23 10/31/23 Utility installations andpavement replacement.EngineeringScott Fettig17Colonial DrThunderbird DrDead End South07/11/22 09/15/23 Utility installations andpavement replacement.EngineeringScott Fettig18Crawford StHickory StMcKinney St03/21/22 08/31/23 Utility installations andpavement replacement.EngineeringScott Fettig19FM 1173IH 35Kansas City Southern RailroadTracks07/17/23 08/28/23 Roadway will be lanes closeand traffic flagged each day forroadway.Private Development TXDoT Kirk Winter20Greenway DrThunderbird DrDead End South07/11/22 09/15/23 Utility installations andpavement replacement.EngineeringScott Fettig21Greenway DrThunderbird DrWindsor Farms Dr10/07/22 09/15/23 Utility installations andpavement replacement.EngineeringScott Fettig22Hickory Creek RdRiverpass DrFM 183003/13/23 12/31/24 Bridge InstallationEngineeringDustin Draper23Highland StLocust StWainwright St01/30/23 10/31/23 Utility installations andpavement replacement.EngineeringScott Fettig24Industrial StBell StMulberry St07/05/23 09/29/23 Utility installationEngineeringSeth Garcia25Katy TrailEdwards RdDCTA MedPark Station08/21/23 11/30/23 A small section of Katy Trail willhave intermittent closures toaccommodate the constructionof the new Mayhill Road Bridgeover the DCTAOtherTracy L. Beck, PE, PMP26Lakewood DrGreenway DrCarriage Hill Rd10/07/22 09/15/23 Utility installations andpavement replacement.EngineeringScott Fettig27Maddox StPrairie StDead End03/20/23 08/31/23 Utility installations andpavement replacement.EngineeringScott Fettig28Maple StCarroll BlvdElm St07/05/23 10/31/23 Utility installations andpavement replacement.EngineeringScott Fettig Exported on August 25, 2023 11:19:44 AM CDT109 Street/ IntersectionFromToClosure StartDateClosure EndDateDescriptionDepartmentDepartment Contact29Mayhill Rd@ Spencer Rd03/28/23 09/14/23 Water main tie-in and turn laneadditionPublic Works Inspections Ryan Cuba30McKinney StMayhill RdRyan Rd05/04/23 09/14/23 Turn lanePublic Works Inspections Ryan Cuba31McKinney StLoop 288Mayhill Rd07/20/23 09/14/23 Sidewalk demo and newsidewalkPublic Works Inspections ryan cuba32Mill StAllen StJohnson St01/17/23 09/01/23 Utility ReplacementEngineeringSeth Garcia33Mill StAllen StRobertson St02/27/23 09/01/23 Utility installation and roadwayreconstructionEngineeringSeth Garcia34Mulberry St EBell AveIndustrial St08/21/23 10/31/23 Utility installations andpavement replacement.EngineeringScott Fettig35Myrtle StFort Worth Dr (HW377)Eagle Dr06/05/23 09/28/23 Utility installations andpavement replacement.EngineeringScott Fettig36Myrtle StMaple StHighland St07/05/23 10/31/23 Utility installations andpavement replacement.Scott Fettig37Myrtle StEagle DrMaple St07/05/23 10/31/23 Utility installations andpavement replacement.EngineeringScott Fettig38Pear Tree PlPheasant Hollow StShadow Trail07/31/23 09/06/23 This work includes roadreconstruction with subgradestabilization, asphalt paving,and concrete curb and gutter.OtherTaylor Holt39Pickwick LnOxford LnWindsor Dr08/21/23 09/25/23 Utility ReplacementEngineeringTaylor Holt40Pierce StMaple StHighland St07/05/23 10/31/23 Utility installations andpavement replacement.Scott Fettig41Prairie StLakey StTo Cemetary/ Halfway down Prairie 08/17/23 10/20/23 Narrow lane closure from Lakeyup to Cemetary beforeBradshaw to install new stormdrain.Public Works Inspections Stephany Trammell42Smith StJohnson StBell Ave01/30/23 09/15/23 Utility installations andpavement replacement.EngineeringScott Fettig43Smith StDallas Dr (Hwy 77)Hill St03/06/23 09/30/23 Utility installations andpavement replacement.EngineeringScott Fettig44Sycamore StIndustrial StWainwright St04/24/23 09/08/23 Roadway & UtilitiesEngineeringSeth Garcia45Sycamore StExposition StRailroad Tracks on Sycamore 08/17/23 10/20/23 Work on manholes and for LangRailyard Private DevelopmentPublic Works Inspections Stephany Trammell46Sycamore StExposition StCrawford St03/13/23 10/31/23 Utility installations andpavement replacement.EngineeringScott Fettig47Thunderbird DrColonial DrCrestmeadow St06/05/23 09/15/23 Utility installations andpavement replacement.EngineeringScott Fettig48Wainwright StPrairie StSycamore St04/24/23 09/29/23 Roadway, utilitiesEngineeringSeth Garcia49Wainwright StHighland StPrairie St03/13/23 10/31/23 Utility installations andpavement replacement.EngineeringScott Fettig50Windbrook CtWindbrook StDead End07/31/23 09/29/23 This work includes roadreconstruction with subgradestabilization, asphalt paving,and concrete curb and gutter.OtherTaylor Holt51Windbrook StPheasant Hollow StShadow Trl08/21/23 09/25/23 This work includes roadreconstruction with subgradestabilization, asphalt paving,and concrete curb and gutter.EngineeringTaylor Holt52Wisteria StParvin StLaurel St05/30/23 09/15/23 Utility installations andpavement replacement.EngineeringScott Fettig53Woodrow LnMcKinney StTroy H Lagrone Dr02/20/23 09/01/23 Water tie inPublic Works Inspections Ryan Cuba Exported on August 25, 2023 11:19:44 AM CDT110 3 Street Closure Report: Completed ClosuresStreet/ IntersectionFromToClosure StartDateClosure EndDateDescriptionDepartmentDepartment Contact1Bonnie Brae StRiney RdWindsor Dr03/10/23 07/31/23 Urbana at Bonnie Brae: PublicPavingPublic Works Inspections Jeremiah Tillman-David2Bonnie Brae StVintage RdFt Worth Dr (HW 377)08/07/23 08/21/23 Water main installWaterJamie Bond3Bradshaw StHickory StMcKinney St03/21/22 08/18/23 Utility installations andpavement replacement.EngineeringScott Fettig4Carroll Blvd SBParkway StOak St05/08/23 07/28/23 Concrete Panel Repair StreetsRoy San Miguel5Churchill DrNottingham DrBurning Tree Ln06/30/23 07/28/23 Pipe bursting sewer pipe Public Works Inspections Armando Beltran6Duchess DrLoop 288Mockingbird Ln08/14/23 08/16/23 Water Department to make tapon Duchess for the PecanCreek Business next to DATCUBank. (All businesses andapartments will still have accessto their property. Contractoronly needs a 3-day closure tocomplete restoration after citymakes the tap.)Public Works Inspections Stephany Trammell7Elm StOak StHickory St08/14/23 08/17/23 Striping of recently installeddiagonal cross-walks aroundthe Square. Short term laneclosuresEngineeringRobin Davis8Hettie StPaisley StMcKinney St03/21/22 08/18/23 Utility installations andpavement replacement.EngineeringScott Fettig9Hickory StElm StLocust St08/14/23 08/17/23 Striping of recently installeddiagonal cross-walks aroundthe Square. Short term laneclosuresEngineeringRobin Davis10Hickory StExposition StRuddell St05/02/22 08/18/23 Utility installations andpavement replacement.EngineeringScott Fettig11Inman St (201)Meadow StCentre Place Dr07/31/23 08/18/23 Concrete Panel Repair StreetsRoy San Miguel12Locust StHickory StOak St07/20/23 08/04/23 Installation of DiagonalCrosswalkEngineeringRobin Davis13Locust StOak StHickory St08/14/23 08/17/23 Striping of recently installeddiagonal cross-walks aroundthe Square. Short term laneclosuresEngineeringRobin Davis14McKinney StCrawford RdAudra Ln05/19/22 08/18/23 Utility installations andpavement replacement.EngineeringScott Fettig15Mingo RdMockingbird LnSirius Dr06/30/23 07/28/23 Utility and road workPublic Works Inspections Armando Beltran16Mingo StSirius DrMockingbird Ln07/27/23 07/28/23 Paving MingoPublic Works Inspections Armando Beltran17Oak StBonnie Brae StThomas St07/21/23 07/31/23 Working on curb and gutter Public Works Inspections Armando Beltran18Oak StElm StLocust St08/14/23 08/17/23 Striping of recently installeddiagonal cross-walks aroundthe Square. Short term laneclosuresEngineeringRobin Davis19Oak StCrawford StWood St04/04/22 08/18/23 Utility installations andpavement replacement.EngineeringScott Fettig20Park Access RdWindsor DrRiney Rd12/15/22 07/31/23 Urbana Bonnie Brae Project:Water, Sewer, Storm, Paving.Private Development PublicWorks InspectionsJeremiah Tillman-David21Peninsula TrlSea Cove LnMarina Dr07/24/23 08/18/23 Sidewalk Panel Replacement StreetsRoy San Miguel22Stallion StLakeview BlvdOak Creek Ln07/03/23 07/28/23 Street Concrete Panel Repair StreetsRoy San Miguel23Val Verde CtMontecito RdDead End East05/19/23 07/31/23 Mill and OverlayStreetsJeff Jones24Windsor DrBurning Tree LnNottingham Dr06/30/23 07/28/23 Pipe bursting sewer pipe &Road restorationPublic Works Inspections Armando Beltran Exported on August 25, 2023 11:19:54 AM CDT111 Street/ IntersectionFromToClosure StartDateClosure EndDateDescriptionDepartmentDepartment Contact25Wood StMcKinney StHickory St04/11/22 08/18/23 Utility installations andpavement replacement.EngineeringScott Fettig Exported on August 25, 2023 11:19:54 AM CDT112