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HomeMy WebLinkAboutFebruary 13, 2001 Agenda ^genda Item AGENDA Feb~ 13, 2001 A~er dete~mmg that a quo~m ~s present ~d convemng m ~ ~en Meeting, the C~ty Co.eft of the C~ty of Denton, Texas will conv~e m a Closed Meetmg on Tuesday, Febm~ 13, 2001 at 5 15 pm m the C~ty of Denton Co~efl Work Session Room, Denton C~ty Hall, at 215 East Mc~ey, Denton, Texas to conmder specific ~tems when these ~tems ~e hsted below ~der ~e Closed Mooting section of ~s agenda ~en ~tems for consideration ~e not hsted ~der the Closed Meoang s~t~on of ~e agenda, ~e C~ty Co.eft will not conduct a Closed Meetmg at 5 15 p m ~d ~11 convene at the t~me hsted below for ~ts regul~ or spec~ called meeting The C~ty Co.eft rescues ~e right to adjo~ into a Closed Meetmg on ~y ~tem on ~ts Meeting agenda eonmstent w~ Chapter 551 of~e Texas Gove~ent Code, as ~ended, as set fo~ below 1 Closed Meetmg A Dehbe~t~ons Reg~dmg Real Prope~y --- Under TEXAS GOVE~ENT CODE Section 551 072 (1) Receive ~o~at~on ~m Staff, d~scuss ~d dehberate concerning posmble p~ch~e of real prope~y com~nmg approximately 40 acres for a comm~ p~k located on Ry~ Road approximately one half mile west of Teasley m ~e C~ty of Denton (2) Receive ~nfo~at~on ~om Staff, d~scuss ~d dehberate concerning possible options for ~e pureh~e of real prope~ for p~k ~d ~spo~at~on p~oses w~th respect to H~cko~ Creek Road reahg~ent alternatives ~ F~ ACTION, DECISION, OR VOTE ON A MA~ER DELIBE~TED ~ A CLOSED MEET~ WILL O~Y BE T~N ~ ~ OPEN MEE~G ~T IS HELD ~ COMPLI~CE ~TH TE~S GOVE~ENT CODE, CH~TER 551, EXCEPT TO ~E EXTENT SUCH F~ ACTION, DECISION, OR VOTE IS T~N ~ THE CLOSED MEET~G ~ ACCO~CE WI~ ~E PRO~SIONS OF SEC~ON 551 086 OF ~E TE~S GOVE~E~ CODE (THE "P~LIC POWER EXCEPTION") ~E CI~ CO~CIL ~SERVES ~E ~GHT TO ~JO~ ~TO A CLOSED MEET~G OR E~CUTI~ SESSION AS AUTHO~ZED BY TEX GOV'T CODE, SEC~ONS 551 001, ET SEO (THE TE~S OPEN MEE~GS ACT) ON A~ I~M ON ITS OPEN MEET~G AGE~A OR TO ~CO~ ~ A CO~ATION OF ~E CLOSED MEET~G ON ~E CLOSED MEE~G I~MS NOTED ~OVE, ~ ACCO~ANCE WITH ~E TE~S OPEN MEET~S ACT, ~CL~G, WI~OUT LIMITA~ON SEC~ONS 551 071-551 086 OF ~ TE~S OPEN MEE~GS ACT Work Session of~e C~ of Denton C~ Co.cfi on Tuesday, Febm~ 13, 2001 at 6 00 p m ~n · e Co.cfi Work Session Room m C~ty Hall, 215 E McK~ey S~eet, Denton, Texas at which · e following ~tms will be considered NOTE A Work Session ~s used to explore matters of interest to one or more C~W Co.cfi Members or the C~W Manager for ~e p~ose of g~vmg stuff d~rect~on into whe~er or not such ma~ers should be placed on a ~e regul~ or special meeting of the Co.cfi for c~t~zen input, C~W Co.cfi dehberat~on and focal C~W action At a Work Sesmon, the C~W Council generally receives info.al and prehmm~ repo~s ~d mfom~on ~om C~W staff, officmls, members of C~W comm~ees, and the md~wdual or org~zat~on proposing co.cfi actmn, ~f m~ted by C~W Council or C~W Manager m paint,pate m the Clty ofD~aton Caty Councal Agenda February 13, 2001 Page 2 sessmn Pame~pataun by md~wduals and memI0ers of organ~zatmns mwted to speak ceases when the Mayor armounces the session ~s being closed to pubhe ~nput Although Work Sessaons are pubhc meetings, and eat~zens have a legal right to attend, they are not pubhe hearings, so mt~zens are not allowed to pameapate m the session unless anwted to do so by the Mayor Any c~tmen may supply to the C~ty Council, plnor to the begmmng of the sessmn, a written report regarding the emzen s opmmn on the matter being explored Should the Council d~reet the matter be placed on a regular meeting agenda, the staff will generally prepare a final report definang the proposed aetmn, which wall be made available to all cat~zens prior to the regular meeting at whach c~t~zen input ~s sought The purpose of thas procedure ~s to allow c~t~zens attending the regular meeting the opportunaty to hear the wews of their fellow c~t~zens w~thout hawng to attend two meetings 1 Receive a report and bold a d~scuss~on on the C~ty of Denton Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2000 2 Receive a report and gave staffd~reet~on regardang the FY 2001-2002 Budget Calendar 3 Receave a report and g~ve staff d~reetmn regardang the potential rezonmg of 1808 N Elm from a General Retail (GR) zonang d~smet to a Planned Development (PD) zomng d~smct (SI-01-002) 4 Receive a report, hold a d~scuss~on and g~ve staff d~rect~on regarding the draft Development Code, ~ncludmg the rewew of publac comments, draft code pohcy assues, zomng map rews~on requests, and the optaons for prowd~ng addmonal notme for propertaes that would become legal, non-conforming land uses 5 Officml actaon on Closed Meetang Item(s) under Sectaons 551 071-551 086 of the Texas Open MeeUngs Act CERTIFICATE I certify that the above not,ce oLmee~ng was poste~l on the bulletin board at We C~ty Hall of the ¢5:~(nm~ Denton, Texas, onthe C/7~ dayof~2001 ~.'~o'clock(am) NOTE THE CITY OF DENTON CITY COUNCIL CHAMBERS IS ACCESSIBLE IN ACCORDANCE WITH THE ~MEmCANS WITH DISABILITIES ACT THE CITY WILL PROVIDE SION 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 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800- RELAY-TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE ADenda Item . ~ / AGENDA INFORMATION SHEET AGENDA DATE February 13, 2001 DEPARTMENT Management and Budget ACM: Kathy DuBose, Assistant C~ty Manager, Fiscal and Mumelpal Servmes~~//' SUBJECT Receive a report and hold a d~scuss]on on the C~ty of Denton Comprehensive Annual Financial Report for the fiscal year ended September 30, 2000 BACKGROUND Comprehensive Annual F~nanmal Report for the year ended September 30, 2000 prowded under separate cover PRIOR ACTION/REVIEW (Council, Boards, Commissions) None FISCAL INFORMATION None Respectfully submitted Anna Mosqueda Director of Management and Budget Agenda Item -~, AGENDA INFORMATION SHEET AGENDA DATE: February 13, 2001 DEPARTMENT' Management and Budget ACM: Kathy DuBose, Fiscal and Mummpal Scrvmes ~) SUBJECT Receive a report and g~ve staff direction regarchng the 2001-02 budget calendar BACKGROUND Please find attached the 2001-02 budget calendar Please note several key dates Friday, August 3, 2001 has been targeted for the City Council budget workshop This will be an all- day meeting beg]nnmg at 9 00 a m Also, please note that Friday, August 10, 2001 has been reserved as an extra day for City Counczl budget deliberations if needed Hopefully, the extra meeting will not be necessary However, staff wanted to give C~ty Council advance notice just in case Final adoption of the 2001-02 budget zs scheduled for September 4, 2001 PRIOR ACTION/REVIEW (Council, Boards, Commissions) Not applicable FISCAL INFORMATION Not applicable EXHIBITS (If applicable) 2001-02 Budget Calendar Respectfully submitted Anna Mosqueda ~ ~ Director of Management and Budget 200f-02 Budget Calendar Feb 13 Tues Priority questionnaire d~stnbuted to City Council Council briefing on budget process March I Tues C~ty Council returns Budget Priority Questionnaire March 6 Tues Results of C~ty Council Budget Priority Quest~onnalre presented to C~ty Council Briefing on budget process March 26 Mon Budget K~ck-off (Operating and CIP) Apnl 5 Thurs Memo to P&Z (briefing on,CIP process) May 5 Sat C~ty Council elect~ons May 8 Tues New C~ty Council members sworn in May 22 Tues D~stnbutlon of Budget Pnonty Questionnaire to new C~ty Councllmernbers May 29 Tues New Counc~lmembers return Budget Priority Quesbonnalre June 12 Tues Review results of Budget Priority Quesbonna~re June 13 Wed General Fund Capital Improvement Program presented to the Planning and Zoning Commission Pubhc Heanng for the General Fund Capital Improvement Program June 27 Wed Planning and Zomng Commission formulate recommendation to deliver to City Council July 31 Tues Proposed budget and CIP submitted to C~ty Council and placed on file with the C~ty Secretary Submission of appraisal roll Submission of ad valorem effective and rollback tax rates to C~ty Council Submission of certified ad valorem collection rate to C~ty Council Aug 3 Fn City Council budget workshop Aug 10 Fn C~ty Council budget workshop (tentative) Aug 14 Tues City Council Budget Study Vote to consider a proposal for a tax ~ncrease pnor to pubhshlng not~ce of hearing (F~nal date) Aug 21 Tues City Council budget study Hotel Occupancy Tax Committee presents recommended budget to C~ty Council Aug 28 Tues Pubhc heanng on tax ~ncrease (Adoption must be set between 3-14 day from th~s date) Pubhc heanng on budget F~nal C~ty Council budget study Sept 4 Tues City Council adopts Annual Program of Services City Council adopts 1st year of Capital Improvement Program budget City Council approves tax rates Approval of 2000 tax roll City Council approves Hotel Occupancy Tax Recipient contracts and budgets AGEND~ INFORMATION SHEET Agenda Item ~ ' ..... Da,e_ AGENDA DATE' February 13, 2001 DEPARTMENT' Planmng & Developmen, t De~a ~rtment DCM , Dawd Hill, 349-8314' SUBJECT - SI-0-0-013 (Krum Release of ET J) Receive a report and g~ve staff d~rectlon regarding a request from the C~ty of Krum to release approximately 7 acres, from the mty's extratemtonal junsd~cUon generally located south of FM 1173 and east of Masch Branch Road BACKGI~OUND A gas staUon/convemence store ~s currently proposed on the western end of the s~te An ex~st~ng apartment ~s located on the eastern end of the site and no plans are proposed for the remainder of the rote The s~te hes w~thm Denton's extratemtonal jurisdiction (ETJ) (See Attachment 1) The C~ty of Krum has requested that the City of Denton relinquish the subject area to them (Attachment 2) ~ Chapter 42 023 of Texas Local Government Code states "The extratemtonal jurisdiction of a mun~clpahty may not be reduced unless the govermng body of the mumcipahty gives its written consent by ordmance or resolution" PRIOR ACTION/REVIEW On October 24, 2000, Caty Council received a report from staff regarding this request At that meeting, council d~rected staff to request more reformation from the developer, for review by the Development Rewew Committee (Attachment 3) ESTIMATED PROJECT SCHEDULE Staff recommends that both the Planmng and Zoning Commission and City Council hold public hearings prior to the release of the ETJ FISCAL INFORMATION None at tlus t~me RECOMMENDATION Staff recommends that City Council &rect staff to prepare an ordinance to release the subject stte from the reties ETJ Staff also recommends that City Council direct staff to enter into negotiations w~th the mty of Sanger to propose a memorandum of agreement (MOA) regarding future hmlts of annexations OPTIONS · Proceed wxth the release or the ETJ on the subject s~te and d~rect staff to enter ~nto negot~atlons with the city of Sanger to propose a memorandttm of agreement (MOA) regarding future hm~ts of annexations · D~rect staff to ~nform the C~ty of Ir. rum that the C~ty of Denton w~ll not release the requested ETJ ATTACHMENTS 1 Location Map 2 Request Letter from the C~ty of Sanger 3 DRC Comments Respectfully submitted D~rector of Planmng and Development Prepared by La y e,ehhm Assistant D~reetor of Planmng and Development ATTACHMENT 1 um.S Rallr°ads Road-network Propneed-project ENGINEERING & TRANSPORTATION DEPARTMENT anger CITY HALL WEST BUILDING Krum N [] Senger 221 NORTH ELM STREET t DENTON TEXAS 76201 Denton Cltylimlts [] E~jD PHONE 940-349-8358 Denton-Krum-Etj 4000 0 4000 8000 Feet ~ DENTON ~ r KRUM ......... -- Buildlng~ ~~'~ ~a BOX 217 !KRUM TX Fax (940) 482-3020 Phone (940) 482-3491 Bright Futura On a proud Past 7 6 2 4 9 May 22, 2000 //~ Darector of Planmng Caty of Denton 215 E, McKmney ~,"~ <¢~ Denton, TX 76201 RE Annexation Request Mr Hall, Enclosed please find a copy of a petition for annexation received by the C~ty of Krum Thas property hes wath~n your Extra Temtorlal Jurisdiction The City of Krum would lake to proceed wath this annexation as requested by the property owners However the mty would first like to deterrmne ff the Qty of Denton has an objection to th~s annexation Please contact myself or Conrad Shaffiett, at (940) 482-3491 to dascuss th~s matter Thank you for your prompt attentaon to th~s matter Smcerely, Floyd Watson, Mayor, Caty of Kmm Enclosures Annexation petatton Map of the proposed area 5 ANNEXATION PETITION TO THE MAYOR AND GOVERNING BODY OF THE CITY OF KRUM, TEXAS The undersigned owner(s) of the hereinafter described tract of land hereby pebt~on your honorable body to extend the present c~ty hm~ts so as to include as a part of the C~ty of Krum, Texas, the following described territory, to wit See Exhibit "A" attached INVe cerbfy that the above descnbed tract of land ~s conbguous to the C~ty of Krum, Texas, ~s not more than one-half (1/2) mde In w~dth and that th~s petition ~s s~gned and duly acknowledged by each and every person or corporahon hawng an ~nterest ~n sa~d land ~,~ner's S~na'~ure #1 THE STATE OF_TEXAS COUNTY OF Bef(~re me, t~e undersigned authon~, on th~s day personally appeared ~ ~ ~ known to me to be the person whose name is subscribed t~the foregoing ~nstrument and acknowledged to me that he or she executed the same for purposes and cons~derabon thereto expressed G~ven under my hand and seal of o~ce, this ~ ~ day of ~ , 2000 (SEAL) Nota~ Pubhc ~n and for the State of Texas ~A, ~[ EDE~ ~ (.'(~ ,~ ~wner's ~nat~:';'~, ~)~ .,- -' ' THE STATE OF TEXAS COUNTY Of Before me, thy undersigned authority, on th~s day personally appeared \[O.~,~u~. ¢~ltd(J~.~.o~J known to me to be the person whose name ~s subScnb~d to the foregoing ~nstrument and acknowledged to me that he or she executed the same for purposes and cons~derahon thereto expressed G,ven under my hand and seal of o~ce, th,s / ~ day of ~ , (SEAL) Net~ Pubhc ~n an8 for the State of Texas My commission expires 7 Abstt~¢~ Number ~1~. ~en~on Count~, T~xa~, ~d being ~he Southerly In Volume 3, ~age 5 of the plat Records and described la the deed fr~ Tcac~ 1.2 Ee~: We~ o~ 8 concr~t~ monument; Tract 271 27 a dlatn~ce of 520.80 faa: to a conccet~ monument found et the Southeast corner t~ereoE In the ~tth line of Tract 36] TH~NC~ Hatch 89 Degrees ~3 Htnates 33 Seconds ~ee~ w/ch th~ South l[~e of Tcact Z? a distance of 618.50 fast to the PLACE OF aEGiNNING smd enclosing 6 998 zcces of lend, 7 1~ ACRES FIELD NOTES to all that ce~a~ tm~ o~ land being a pa~ at Tra~ 27 af L~ttie ~rook Estales Umt No 2 an addition in Denton County. Texas. according to [he plat thereof re~rded m Volume 3 Page 5 at [he Plat RecaPs at Denton Couety. Texas as recognized and occupied on the ground the subje~ tract being more pa~culady described as BEGINNING for the No~hwest Comer o~ the tract Being described hereto at a concrete manumit ~ound for the No~hwe~ Comer o~ sa~d Tract 27 in the Sou[h ngh[-of-way of F M H~ghway 1173 and the East ~ne o~ Masch 8ranch Road, ~ENCE No~h B9 D~rees 44 Minutes 51 Seconds Ea~ with the No~h line of sa~d Tra~ 27 and the South hne o~ sa~d highway, generally alonzo tents a distance of 416 47 test to a 112~ ~ron rod [ound for the No,beast Comer of sa~d Tract 27. same being [he No~hwest Comer o~ Tract 28 tro~ which the remmns o~ an old c0ncre[e monument was ~ound lying needy THENCE Sou[h 00 Degrees 09 Minutes 01 Seconds East wRh the ~s[ line at said Lot 27 d~s[ence at 745 53 feet to a concrete ~onu~ent found for the No,beast Comer at that co,am [ra~ o~ o~ smd Tra~ 27, ~scnbed ~n [he deed to Denton ~apt~ Assoc. rotated m Volume 2660 Page 583 o~ the Real Pro~ RecaPs o~ Denton County Texas THENCE ~orlh 89 Degrees 47 Minutes 08 Seconds West wdh the No~h tine of smd Bap[~s[ tract, severing ~a~d Tra~ 27 a di~ance of 417 74 test to a 1/2" iron rod found for the NoRhwe~l Comet of smd Baphst t~ct ~n the We~t hne of sa~d Tram 27 and the East hne at sa~d Masch Branch Road, THENCE No~ 0O Degrees 03 Minutes 10 8econds West ~th sa~d E~ hne and the West o~ said Tract 27. generally along a tents o~upy~ng the East hne of sa~d road a ~stance 742 13 ~ee[ to the P~CE OF BEGINNING an~en~osmg 7 122 acres of land 8 Attachment 3 DRC COMMENTS Transportation Comments ' Looking at the ~nfo you gave us last week, the subJect property ~s already subdivision platted as L~ttle Brook Estates It also appears that a subd~wslon plat has been processed through the county Deflmtely did not come through our process Driveways for the retail parcel do not meet,our reequ~rements for spacing, stacking or corner clearance As the property ~s w~th~n 8000 feet of a City of Denton waterhne, ~f the property was replatted through the C~ty of Denton, there would be penmeter pawng and s~dewalk reequ~rements We would also reqmre more right of way on FM 1173 I think as a point of pnnc~ple, the property ~s not developing the way we would hke to see I'm not sure that we have much control over that now, so maybe ~t should be part of Krum Water/VV;~stewater Comments. Th~s proposed annexabon by Krum appears to be a conbnued eastward expansion of Krum ~nto the C~ty of Denton's ETJ and CCN for water and wastewater ut~hty service area The tract ~s also reside a dually cerbfled area for water service by the C~ty of Denton and Bolivar WSC although I do not beheve that BWSC has any fac~ht;es to prowde service ~n th~s ~mmed~ate area The C~ty of Denton ~s the only wastewater CCN holder for th~s area but we do not have ex~sbng fac~hbes for water or wastewater service readily ava;lable to serve th~s area at the present t~me The closest fac~ht~es for both water and wastewater service are m the Ranch Estates subd~ws~on to the southeast of th~s tract Th~s tract ~s w~th~n our water d~stnbutlon and wastewater collection system master planning area but we do not have any specific projects planned ;n our five year CIP to serve th;s area with the possible excepbon of the 900 service plane elevated storage tank project I do not have a major ~ssue ~n forfeiting this port~on of our service area over to the C~ty of Krum but I would strongly suggest that the C~ty of Denton and the C~ty of Krum define and agree to a specific boundary hne s~m~lar to the Argyle, Corinth, Shady Shores and H~ckory Creek agreements made in the past Otherwise, I can envision that th~s one tract at a time process w~ll conbnue until Denton takes a non-cooperabve pos~bon on the next request Th~s ~s a City pohcy ~ssue and not a real water ubhty ~ssue to deal w~th Dra,naRe Comments Here are my drainage comments related to Krum Annexabon (12 acres on the southeast corner of, Masch Branch Road and FM 1173) I have no ~ssues w~th releasing the property for annexation However, the C~ty of Krum may want to address the concerns I have mentioned below 1 The property hes outside the 100-year floodplain as shown on the FEMA flood map However a creek ~s shown along and possible w~th~n the property on the east s~de Typically the City of Denton reequ~res a flood study of a creek of this nature, even when it ~s not shown as floodplain on the FEMA map The lO0-year water surface elevations are calculated to set m~mmum finished floors The study is also used to evaluate the development ~n regards to ~ncreases ~n lO0-year water surface elevations tO 2 The ~rngat~on f~elds for the aerobic treatment system may encroach ~nto the creek and floodplain Th~s ~s an ~ssue that should be d~scussed w~th Denton County 3 Increases in runoff should be evaluated by a drainage study to determine ~ts impact on surrounding properties and drainage associated w~th any road AGENDA INFORMATION SHEET Agenda Item ~ate ,--~//,..¢/,¢ / AGENDA DATE February 13, 2001 DEPARTMENT. Planning Department CM/DCM/ACM David Hill, 349-8314 SUBJECT- SI-01-002 (1808 N Elm) Recetve a report and give staff direction regarding the potential rezomng of 1808 N Elm from a General Retml (GR) zoning district to a Planned Development (PD) zomng district BACKGROUND Mr Clark Llndholm, the property owner of 1808 N Elm, is m the process of converting thc use of an existing structure from an office use to a residential use Thc subject property is located in a General Retail (GR) zoning dlstrmt created in 1969 by Ordinance 69-01 Prior to that time, the site was used for residential uses The western (fron0 structure has been utilized for an office and thereby lost its non-conforming use (the residential use) Thc owner of thc property would like the ablhty to utilize that structure for a residential use Mr Lindholm has requested that thc utility department convert his billing rate to a residential rate The rate conversion can bc accomplished after the use has been changed ~' The surrounding neighborhood is a mixture of smgle-famdy residential, offices, single- family houses that have been converted to offices and multi-family residential A Planned Development (PD) is thc only zoning classification that w111 allow for both office and residential uses on the same property ~ Thc proposed residential use is consistent with the Denton Plan PRIOR ACTION/REVIEW The potential rezonmg of the subject property is similar to recent zomng cases at 1508 N Elm and 1513 N Locust On April 4, 2000, City Council rezoned both properties to Planned Developments (PD-182 and PD-183 respectively) Both properties were located in as Office (O) zoning district and had recently been utilized for offices Both property owners wished to convert the existing structures for residential purposes, but still malntmn the potential for future office uses A Plarmed Development is the only zoning dismct that will allow mixed uses to exist on the same property ESTIMATED PROJECT SCHEDULE If directed by council, staffwlll proceed with a zomng case with public heanngs at both Planmng and Zoning Commission and City Council FISCAL INFORMATION No new development ~s proposed and the re-zoning of th~s property will have no effect on the assessed value of the c~ty, county, and school d~stnct RECOMMENDATION As thru s~tuatmn ~s s~mflar to the recent rezomng eases at 1508 N Elm and 1513 N Locust, m whmh the c~ty m~tmted the zomng change, staffrecommends that C~ty Council direct staffto 1nitrate a zomng change for the subject property OPTIONS 1 D~reet staff to proceed w~th a c~ty 1turreted zomng change for the subject property, including a wmver from the interim regulations 2 D~reet staff to reform the property owner to proceed w~th a zoning apphcatlon ATTACHMENTS 1 Zoning Map Respectfully submitted Assistant D~rector of Planning and Development Prepared by ~s~l~ c~f PI annlng and Development NORTH 1808 N ELM 1808 N Elm ~ MF-2 (TWU) Locust ZONING MAP Scale None 3 Deloitte & Touche LLP Suite 2950 301 Commerce Street Fort Worth Texas 76102 Tel (817) 347 3300 Fax (817) 336 2013 www us deloitte com Deloitte &louche January 24, 2001 The Honorable Mayor and Members of the City Council City of Denton, Texas We have audlted the general purpose financial statements of the C~ty of Denton, Texas, for the year ended September 30, 2000, and have issued our report thereon dated January 24, 2001 Our professional standards require that we communicate with you concermng certain matters that may be of interest to you m fulfilhng your obhgatmn to oversee the financial reporting and d~sclosure process for which management of the City of Denton, Texas (the "City") is responsible We have prepared the following comments to assist you m fulfithng that obhgatlon OUR RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA AND GOVERNMENTAUDIT1NG STANDARDS ISSUED BY THE COMPTROLLER GENERAL, OF THE UNITED STATES Our responslbthty under auditing standards generally accepted in the Umted States of Amer~ca ("generally accepted auditing standards") and the standards apphcable to financial audits contained m Government Auditing Standards has been described to you m our engagement letter As described m that letter, those standards reqmre, among other things, that we obtain a sufficient understanding of the City's internal control to enable us to properly plan our audit and to determine the nature, t~mmg, and extent of andlt procedures to be performed We have issued a separate report to you, also dated January 24, 2001, containing our commeuts on the C~ty's internal control SIGNIFICANT ACCOUNTING POLICIES The City's s~gmficant accounting pohc~es are set forth m Note 1 to the CKy's 2000 financial statements During the year ended September 30, 2000, there were no slgmficant changes m prewously adopted accounting pohcles or their apphcatlon MANAGEMENT JUDGMENTS AND ACCOUNTING ESTIMATES Accounting esUmates are an integral part of the flnancml statements prepared by management and are based on management's current judgments Those 3udgments are normally based on knowledge and experience about past and current events and on assumptions about future events Slgmficant accounting esUmates reflected m the City's 2000 financial statements include the reserve for the C~ty's property, habthty and workers compensation, and employee health and hfe insurance programs Deloitte Touche Tohmatsu - I - SIGNIFICANT AUDIT ADJUSTMENTS Our audit was designed to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material mlssta'/ement, whether caused by error or fraud In addition, we are obhgated by generally accepted auditing standards to inform you of any adjustments arising from the audit that could, m our judgment, either ~nd~wdually or the aggregate, have a s~gmficant effect on the C~ty's financial reporting process All proposed audit adjustments were rewewed w~th management and were determined, mdlwdually or m the aggregate, not to have a s~gmficant effect on the financial reporting process DISAGREEMENTS WITH MANAGEMENT We have not had any disagreements with management related to matters that are material to the C~ty's 2000 financial statements CONSULTATION WITH OTHER ACCOUNTANTS We are not aware of any consultations that management may have had w~th other accountants about audlt~ng and accounting matters during fiscal 2000 MAJOR ISSUES DISCUSSED WITH MANAGEMENT PRIOR TO RETENTION Throughout the year, routine d~scuss~ons regarding the application of accounting principles or auditing standards were held with management m connectton w~th transactions that have occurred, transactions that are contemplated, or reassessment of current circumstances in our judgment, such discussions were not held m com~ectlon w~th our retention as auditors DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT In our judgment, we received the full cooperation of the C~ty's management and staff and had unrestricted access to the C~ty's semor management m the performance of our audit MANAGEMENT CONSULTING SERVICES The City d~d not engage us to perform any management consulting services during fiscal 2000 OTHER INFORMATION IN THE COMPREHENSIVE ANNUAL FINANCIAL REPORT When audited financial statements are included ~n documents containing other mformat~on, such as the C~ty's Comprehensive Annual Financial Report, generally accepted auditing standards require that we read such other mformat~on and consider whether ~t, or the manner of its presentation, ~s materially inconsistent with the reformation, or the manner of ~ts presentation, ~n the financial statements audited bY us We have read the other mformat~on m the C~ty's Comprehensive Annual Financial Report for the year ended September 30, 2000, and have mqmred as to the methods of measurement and presentation of such reformation If we had noted a mater~al inconsistency, or ~f we had obtained any knowledge of a material m~sstatement of fact In the other information, we would have d~scussed this matter w~th management and, if appropriate, w~th the Mayor and C~ty Council -2- Tins report is intended solely for the information and use of the Council, management, and federal and state awarding agencies, and ~s not ~ntended to be and should not be used by anyone other than these specffied part~es We will be pleased to d~scuss th~s report wtth you further at your convenience Yours truly, -3- City of Denton, Texas Report to Management Year Ended September 30, 2000 Deloitte & Touche LLP Suite 2950 301 Commerce Street Fort Worth Texas 76102 Tel (817) 347 5300 Fax (817) 356 2013 wwwu, ,o,tt o Deloitte &Touche January 24, 2001 Honorable Mayor and Members of City Council City of Denton, Texas In planning and performing our audit of the general purpose financial statements of the City of the Denton, Texas (the "City") for the year ended September 30, 2000 (on which we have issued our report dated January 24, 2001), we considered its internal control ~n order to determine our auditing procedures for the purpose of expressing an opinion on the general purpose financial statements and not to provide assurance on the City's internal control Such consideration would not necessarily disclose all matters in the City's internal control that might be material weaknesses under standards estabhshed by the Amerman Institute of Certified Pubhc Accountants A description ofthe responsibility of management for estabhshmg and maintaining the internal control, and of the objecUves of and inherent hmltations in such controls, is set forth in the attached Appendix, and should be read m eonjunct~on w~th this report A material weakness is a condition ~n which the design or operation of one or more of the internal control components does not reduce to a relatively Iow level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a tnnely period by employees in the normal course of performing their assigned functions We noted no matters involving the C~ty's internal control and its operation that we consider to be material weaknesses as defined above The recommendations included in this report concern admlmstratlve and operating matters that resulted from our observations during our audit and are not based on a special study Th~s report is intended solely for the lnformatmn and use of the City Council, management and appropriate federal and state agencies, and is not intended to be and should not be used by anyone other than these specified parties We would be pleased to discuss these observations and recommendat}ons further w~th you and to assist you in ~mplementing them Yours truly, Deloitte Touche Tohmatsu EXHIBIT BANK RECONCILIATIONS Observation The following items were noted in our review of the C~ty's September 2000 bank reconciliations · Duphcate reeoncthng ~tems were bsted · There was no ewdence of supervisory rewews on the reconclhat~on Recommendations Proper preparatmn and rewews of bank reconcthat~ons are a critical part of the City's internal controls C~ty management should enforce the ex~st~ng review process on reconciliations to ensure that reconciliations are prepared correctly Documentation of such rewews sbould be ewdenced on the reconciliation Management response Per prior year recommendation, bank reconcthat~ons have been reconciled m~ a monthly bas~s Staffagrees w~th the observatmn regarding formal rewew procedures and has instituted a procedure where the staff member preparing the bank reconcthat~on and the staff member performing the rewew will both sign-off on the completed reconciliation FIXED ASSET INVENTORY TAGS Observation There ~s a delay m securing ldent~ficatmn tags to fixed assets for the Commumty Development Department In some instances, the delay was at least s~x months Ftxed asset tags not only prowde ewdence of City ownership, but when entered into the fixed asset register also to help ~dentffy the location of the asset Recommandat~on Ensure that tags are placed on all items m inventory m a t~mely manner implement procedures that require assets to be tagged when received Managemer~t response Staff ~s aware of the need for t~meher tagging of assets Due to vacancies m the accounting department th~s past year this area has not been a h~gh priority, however, at year end all fixed assets were tagged Staffbas consobdated all fixed asset duties to one posmon m order to chromate any confusion as to responslbthtles Staff will also begin reconciling and tagging assets on a monthly bas~s -2- UTILITY BILLINGS RECEIVABLE Observat~oq Due to problems w~th the new uUhty bflhng system, there was no detail by customer of the utility bflhng receivable at September 30, 2000 W~thout access to a detail by customer the C~ty cannot manage amounts due to the C~ty or reconcile the utility bflhng system to the general ledger Recommendation The C~ty should ~mplement procedures to ensure that the utility bflhng system can produce aging reports and details by customer Th~s detail from the utility bfihng system should be reconciled monthly to the balance recorded on the general ledger Mm~agemer~t response Staff ~s aware of the need for monthly reconcflmt~ons Due to software conversion ~ssues with the repor~ wrmng module staffwas unable to generate receivable reports at year end Staff ~s now able to obtain monthly repons from the bflhng system and will reconcile the outstanding accounts receivable on a regular bas~s, as pan of our monthly duties -3- STATUS OF PRIOR YEAR COMMENTS NEW ACCOUNTING STANDARD Observat~ort In June 1999, the Governmental Accounting Standards Board ("GASB") issued its Statement No 34, "Basic F~nanc~al Statements - and Management's D~scuss~on and Analysls - for State and Local Governments" Th~s statement w~ll reqmre dramatic changes to the way that the C~ty collects m formation about transactions, records certain transactions m ~ts ledgers, and reports its financial information ~n accordance w~th generally accepted accounting principles Statement No 34 changes the framework of financial reporting for state and local governments and represents an ~mportant change In the h~story of accounting and financial reporting for state and local governments A partial hst of the reqmrements ofth~s new standard follows Management's Dtscuss~on and Analysis ("MD&A") - similar to what ~s required by pubhc companies when reporting to the Securities and Exchange Commission Governmentwlde financial statements on a full accrual bas~s Statel'aent of activities on a "cost-of-service" bas~s Separately reporting only major funds (as defined m the statement) New definitions of fund types Cash flow statements must be prepared using the direct method Recording ~nfrastructure assets Deprecmtmg all fixed assets Budget comparisons, including original and amended budgets, as required supplemental information Several of these changes may reqmre significant research and preparation on the part of the C~ty prior to the year of ~mplementat~on R. ecommendatlon Obtain an understanding of the provisions of Statement No 34 Management should determine a plan of action with regard to ~mplementat~on of th~s statement The plan might include such things as redefining the funds used by the orgamzat~on, the avmlab~hty of data (for example, the cost of fixed assets), the ab~hty of the organization to collect and summarize the necessary data (for example, d~rect and md~rect costs of act~wt~es for reporting on the statement of act~wt~es), the expected time line for gathering th~s mformat~on and the resources avmlable or to be procured to achieve that time hne Should addmonal resources be determined to be necessary, appropriate funding and budget adjustments should be pursued Status The City ~s making continuing efforts to educate staff on the issues and respons~b~htles regarding GASB 34 Tile C~ty ~s currently having ~ts infrastructure appraised Staffmeets on a regular basis to plan and discuss -4- ~ssues regarding comphance The City has also dec~ded to hire the external auditors to restate the 1999 - 2000 CAFR ~n GASB 34 format CASH MANAGEMENT Observation Bank reeonclhations were not consistently completed on a timely bas~s The reconciliation of the operating bank account was brought up to date during the year end closing procedures, when reconelhat~ons for March, June, and September were prepared However, as bank reconcthatlons are a detective control, fadure to perfonu reconc~hatlons on a t~mely basis increases the time period for which an error could go undetected and can increase the d~fficulty of correcting such an error Recommen~tat~on Reconcile all accounts monthly, such reconcihat~ons should be rewewed by appropriate personnel to ensure timely detection and correct~on of errors, thereby reducing the risk involved with misappropriations of cash The mdlwdual bank accounts which are no longer needed and have had no act~wty should be hqu~dated and the funds placed into the general operating account Cash is the most susceptible asset to acts of fraud or theft, and therefore it ~s critical that these appropriate controls are ~n place and functioning over these assets Status See current year comment CLOSING PROCEDURES Observation The C~ty currently maintains no formal closing procedures to ensure all appropriate adjusting and closing journal entries have been made As a result, ~ndlwduals in new positions do not have a complete hst of procedures to be performed or recurring entr~es to be recorded during the closing process Recommendation Document all closing procedures including all of the recurring adjusting journal entries required to perform the year-end close Documented procedures w~ll help management assess the efficiency and effectiveness of the closing process and determine ~fany changes are necessary This would also allow the close oftbe ledgers and the preparation of the finaneml statement to occur on a more timely bas~s Status Staff continues to use checkhst to ensure all closing procedures and adjusting eutr~es are performed As part of the closing process, closing folders wdl now be prepared by staffto ensure closing procedures are followed from year to year and as a training tool for employees m new poslt~ons -5- APPENDIX MANAGEMENT'S RESPONSIBILITY FOR AND THE OBJECTIVES AND LIMITATIONS OF THE LNTERNAL CONTROL The following comments concermng management's responsibility for internal control and the objectives of and the ~nherent hm~tat~ons m the internal control are adapted from the Statements on Audmng Standards of the American Institute of Certified Pubhc Accountants Management's Respons~blhty Management ~s responsible for estabhshlng and maintaining internal control In fulfilhng th~s respons~blbty, estimates and judgments by management are required to assess the expected benefits and related costs of mterna] control, pohe~es and procedures Objectives The object~ves of ~nternal control are to prowde management w~th reasonable, but not absolute, assurance regarding the achievement of objectives m the follownlg categories (a) rebab~hty of financial reporting, (b) effectiveness and efficiency of operations, and (c) comphance w~th apphcable laws and regulations Limitations Because of Inherent hmltat~ons m any internal control, errors or fraud nevertheless may occur and not be detected Also, pro. lect~on of any evaluation of the internal control to future periods ~s subject to the r~sk that procedures may become inadequate because of changes m conditions or that the effectiveness of the design and operation of poheles and procedures may deteriorate City of Denton, Texas Single Audit Reports Year Ended September 30, 2000 CITY OF DENTON, TEXAS TABLE OF CONTENTS Auditor Prepared Independent Auditors' Report on Comphance and on Internal Control Over Fmanmal Reporting Based on an Audit of Fmancml Statements Performed m Accordance w~th Government Auditing Standards 1-2 Independent Auditors' Report on Comphance w~th Reqmrements Apphcable to Each Major Program and Internal Control Over Comphance ~n Accordance w~th OMB C~rcular A-133 3-4 Aud~tee Prepared Supplementary Schedule of Expenditures of Federal and State Awards 5-6 Notes to Supplementary Schedule of Expenditures of Federal and State Awards 7 Auditor Prepared Schedule of F~nd~ngs and Quesboned Costs 8 Deloitte &Touche LLP State 2950 301 Commerce Street Fort Worth Texas 76102 Tel (817) 347 3300 Fax (817) 336 2013 wwwu, ,o,tte o Deloitte &Touche INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Honorable Mayor and Members of the City Councd C~ty of Denton, Texas We have audited the general purpose financml statements of the C~ty of Denton, Texas, ("City") as of and for the year ended September 30, 2000, and have issued our report thereon dated January 24, 2001 We conducted our audit m accordance w~th audlUng standards generally accepted m the Umted States of America and the standards apphcable to financial audits contmned m GovernmentAudmng Standards, ~ssued by the Comptroller General of the Umted States Compha~ce As part of obtaining reasonable assurance about whether the City's general purpose financial statements are free ofmaterml m~sstatement, we performed tests of ~ts comphance w~th certmn prowslons of laws, regulations, contracts and grants, noncomphance with whmh could have a d~rect and material effect on the determination of financml statement amounts However, prowd~ng an oplmon on comphance w~th those prowsmns was not an objective of our audit and, accordingly, we do not express such an opinion The results of our tests d~sclosed no ~nstances of noncomphance that are reqmred to be reported under Government Audttmg Standards Internal Control Over F~nancml Reporting In planmng and performing our audit, we considered the C~ty's internal control over financml reporUng m order to determine our auditing procedures for the purpose of expressing our op~mon on the general purpose financml statements and not to prowde assurance on the internal control over finanmal repomng Our consideration of the ~nternal control over financial reporting would not necessarily d~sclose all matters m the internal control over financml reporhng that m~ght be materml weaknesses A materml weakness is a condition ~n wluch the design or operation of one or more of the internal control components does not reduce to a relatwely Iow level the risk that m~sstatements m amounts that would be material m relaUon to the financml statements being audited may occur and not be detected w~thm a timely period by employees ~n the normal course of perform mg their assigned functions We noted no matters tnvolwng the ~nternal control over financml repomng and ~ts operation that we consider to be material weaknesses However, we noted other matters mvolwng the internal control over financml reporhng that we have reported to the management of the C~ty m a separate letter January 24, 2001 Deloitte Touche Tohmatsu - I - This report is intended for the ~nformatlon and use of the Mayor and C~ty Councd, management and federal and state awarding agencies and pass-through entities and ~s not ~ntended to be and should not be used by anyone other than these specified part,es January 24, 2001 -2- Deloitte & Touche LLP Smte 2950 301 Commerce Street Fort Worth Texas 76102 Tel (817) 347 3300 Fax (817) 336 2013 wwwu, de,o,tt, com Deloitte &Touche INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 The Honorable Mayor and Members of the C~ty Council C~ty of Denton, Texas Comphance We have audited the complmnce of the C~ty of Denton, Texas ("C~ty"), w~th the types of comphance reqmrements described ~n the US Office of Management and Budget (OMB) Ctrcular A-133 Comphance Supplement that are apphcable to each of ~ts major federal and state programs for the year ended September 30, 2000 The C~ty's major federal and state programs are ~denUfied m the summary of auditor's results section of the accompanying schedule of findings and quesUoned costs Comphmace w~th the reqmrements of laws, regulations, contracts and grants apphcable to each of Its malor federal and state programs ~s the respons~b~hty of the C~ty's management Our respons~bd~ty ~s to express an op~mon oftbe C~ty's comphance based on our audit We conducted our audit of comphance ~n accordance w~th audmng standards generally accepted m the Umted States of America, the standards apphcable to financtal audits contmned ~n Government Aud~ttng Standards, ~ssued by the Comptroller General of the Umted States, and OMB C~rcular A- 133, Audtts of States, Local Governments, and Non-Profit Orgamzanons Those standards and OMB C~rcular A-133 reqmre that we plan and perform the audit to obtmn reasonable assurance about whether noncomphance w~th the types of comphance reqmrements referred to above that could have a d~rect and materml effect on a major federal or state program occurred An audit ~ncludes examn3mg, on a test basis, ewdence about the C~ty's eomphance w~th those reqmrements and performing such other procedures as we considered necessary ~n the c~rcumstances We beheve that our audit promdes a reasonable basis for our opmmn Our audit does not prowde a legal determ~naUon on the C~ty's comphance with those reqmrements In our oplmon, the City comphed, in all material respects, w~tb the reqmrements referred to above that are apphcable to each of ~ts major federal and state programs for the year ended September 30, 2000 Internal Control Over Comphance The management of the C~ty is responsible for estabhsh~ng and mmntammg effecUve internal control over comphance w~th reqmrements of laws, regulations, contracts and grants apphcable to federal and state programs In planmng and performing our audit, we considered the C~ty's internal control over comphance w~th reqmrements that could have a d~rect and material effect on a major federal or state Deloitte Touche Tohmatsu - 3 - program ~n order to determine our auditing procedures for the purpose of expressing our op~mon on comphance and to test and report on internal control over comphance xn accordance w~th OMB Ctrcular A- 133 Our consideration of the ~nternal control over compliance would not necessarily d~sclose all matters m the internal control that m~ght be material weaknesses A matertal weakness ts a condttlOn m which the design or operation of one or more of the internal control components does not reduce to a relatively Iow level the r~sk that noncomphance wtth apphcable reqmrements of laws, regulations, contracts and grants that would be materml m relatton to a major federal or state program being audited may occur and not be detected w~th~n a t~mely petted by employees in the normal course of performing their assigned functions We noted no matters revolving the internal control over compliance and ~ts operation that we consider to be material weaknesses Schedule of Expenditures of Federal and State Awards We have audtted the general purpose financml statements of Ctty of Denton, Texas, as of and for the year ended September 30, 2000, and have ~ssued our report thereon dated January 24, 2001 Our and~t was performed for the purpose of forming an opinion on the general purpose financml statements taken as a whole The accompanying schedule of expenditures of federal and state awards ~s presented for the purpose of additional analysts as reqmred by OMB Ctrcular A-133 and ns not a reqmred part of the general purpose financtalstatements Thtssehedule~stherespons~bfl~tyofthemanagementofC~tyofDenton, Texas Such mformatton has been subjected to the auditing procedures apphed m our audit of the general purpose financial statements and, m our opinion, ts fairly stated, m all material respects when considered m relation to the general purpose financml statements taken as a whole Th~s report ~s intended for the mformahon and use of the Mayor and C~ty Council, management and federal aud state awardmg agencies and pass-fl~rough ent~t~es and ts not intended to be and should not be used by anyone other than these speetfied parttes January 24, 2001 -4- CITY OF DENTON, TEXAS SUPPLEMENTARY SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS YEAR ENDED SEPTEMBER 30, 2000 Federal Grantor/ Federal Passed Pass-Through Grantor/ Grant CFDA Through to Program Title I D Number Number Expenditures Subrec~p~ents U. S. Department of Hnus~n~ and Urban Develonmant Community Development Block Grant B-94~MC-48-0036 14 218 $ 3,418 Commumty Development Block Grant B-95 -MC-48-0036 14 218 34,480 Commumty Development Block Grant B-96-MC-48-0036 14 218 41,078 Commumty Development Block Grant B-97-MC-48-0036 14 218 19,477 $ 94 Commumty Development Block Grant B-98-MC-48-0036 14 218 353,998 3 985 Commumty Development Block Grant B-99-MC-48-0036 14 218 576,301 115,658 Commumty Development Block Grant B-99-MC-48-0036 14 218 106,739 Home Investment Partnership M-94-MC-48-0223 14 239 2,408 1,340 Home Investment Partnership M-95-MC-48-0223 14 239 39,728 I 085 Home Investment Partnership M-96-MC-48-0223 14 239 29,761 Home Investment Partnership M-97-MC-48-0223 14 239 57,493 Home Investment Partnership M-98-MC-48-0223 14 239 122,265 6 175 Home Investment Partnership M-99-MC-48-0223 14 239 303,725 44,818 Home Investment Partnership M-99-MC-48-0223 14 239 31,516 Total U S Department of Housing and Urban Development 1,722,387 173,155 U. S. Deoartment of the Interior National Park Service - Texas Historical Commission 48-94-90065 006 15 914 1,550 U. S. Denartmant of Transportatton Passed Through State Department of Transportation Federal Transportatmn Grant (1) TX 90-X416 20 507 17,879 Federal Transportation Grant (1) TX 90-X446 20 507 28,232 Federal Transportation Grant (1) TX-90-X474 20 507 558,115 Occupant Protection Grant 589XXF6028 20 600 31,062 Teen Sell Then Jml Grant 589XXF6023 20 600 22,790 Intersection Traffice Control Grant 589XXF6025 20 600 23,052 Total U S Department of Transportation 681,130 U. S. Deoartment of Justme COPS Ahead 95CCWX0311 16 726 859,344 Local Law Enforcement Block Grant 97-LB-VX-2858 16 592 55,842 Passed Through Office of the Governor Criminal Justme Division Dehnquency Prevention/Intervention JT-98-J07 13805 16 540 233,512 Total U S DepartmentofJustme 915,186 -5- CITY OF DENTON, TEXAS SUPPLEMENTARY SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS YEAR ENDED SEPTEMBER 30, 2000 Federal Grantor/ Federal Passed Pass-Through Grantor/ Grant CFDA Through to Program Title I D Number Number Expenditures Subrecip~ents U. S. Deoartmant of A~ncult~jFl~ Passed through State Department of Health and Human Services Food Serwces Grant 061-1002 10 559 $ 29,020 Federal Environmental Protectmn Agency EMPACT Grant R827065-01-9 66 708 164,724 Total Federal Programs 3,747,509 $ 173 155 Office of the Governor - Criminal Justme Dw~slon Family Serwces Umt SF-00-A23-14621 N/A 58,481 Confiscated Property N/A 22,873 Tobacco Comphance SB55 N/A 853 Total Office of the Governor 82,207 Telecommumcatmn Infrastructure TIFB Library QE- 1999-LTA 1 S- 1993 N/A 5,321 Total State Programs 87,528 TOTAL FEDERAL AND STATE AWARDS $3 835,037 $ 173,155 -6- CITY OF DENTON, TEXAS NOTES TO SUPPLEMENTARY SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS SEPTEMBER 30, 2000 1 BASIS OF ACCOUNTING The supplementary Schedule of Expenditures of Federal and State Awards ~s prepared on the modified accrual bas~s of accounting Expenditures are recogmzed when they become a demand on current available financzal resources Encumbrances are used during the year for budgetary control purposes and lapse at fiscal year-end 2 REPORTING ENTITY The C~ty of Denton, Texas, for purposes of the Supplementary Schedule of Expendnures of Federal and State Awards includes all the funds of the primary governmeut as defined by GASB Statement 14 3 PASS-THROUGH AWARDS The C~ty of Denton receives certain federal awards from pass-through awards of the State of Texas The amounts received are commingled by the State of Texas wtth other funds and cannot be separately ~dent~fied The total amount of such pass-through awards ~s included on the Supplementary Schedule of Expenditures of Federal and State Awards -7- CITY OF DENTON, TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2000 1 Summary of Auditors' Results Type of auditor's report issued on the financial statements unquahfied 2 No internal control findings required to be reported m this schedule were d~sclosed in the audit of the financial statements 3 Noncomphance whmh IS materml to the financial statements none 4 No internal control findings required to be reported In this schedule were d~sclosed in the audit of compliance of the major programs 5 Type of auditor's report on compliance for major programs anquahfied 6 Did the audit disclose findings which are required to be reported under Sec 510(a) no 7 Major programs include U S Department of Housing and Urban Development Community Development Block Grant CFDA # 14 218 U S of Transportation Federal Transportation Grant CFDA # 20 507 8 Dollar threshold used to distinguish between Type A and Type B programs $300,000 9 Low risk audltee yes II Findings Related to the Fmaneml Statements The audit disclosed no findings required to be reported III Findings and Questioned Costs Related to the Federal and State Awards The audit disclosed no items required to be reported -8- CITY OF DENTON, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the fiscal year ended September 30, 2000 CITY MANAGER Michael W Jez ASSISTANT CITY MANAGER OF FISCAL AND MUNICIPAL SERVICES Kathy DuBose, CPA, CGFO Director of Management and Budget Anna Mosqueda Prepared by. Krlstin Newman, CPA, CGFO Assistant Director of Management and Budget Gary A Calmea, CPA Controller Edward Scoff, CPA Chief Accountant Diane Chang, CPA Senior Grants Accountant Mike Rodgers Senior Utility Accountant Kurt Breyfogle Senior Utility Accountant Daniel Harper Accountant III Marlene Smith Accountant I Mary Ward Accountant I Chris Rodrlguez Flnanc,al Analyst Please visit us at our webs~te at www Cltyofdenton corn TABLE OF CONTENTS Page INTRODUCTORY SECTION Transmittal Letter ~ Orgamzat~on Chart ~x Certificate of Achievement x L~st of Principal Officials x~ FINANCIAl. SECTION Auditors' Report 1 General Purpose F~nanc~al Statements - Combined Balance Sheet - All Fund Types and Account Groups 4 Combined Statement of Revenues, Expenditures and Changes m Fund Balances - All Governmental Fund Types and Expendable Trust Fund 10 Combined Schedule of Revenues, Expenditures and Changes ~n Fund Balances - Budget and Actual - General, Special Revenue (Recreation, Police Confiscation, Emily Fowler Library, Tourist and Convention Funds) and Debt Service Funds (Budget Bas~s) 12 Combined Statement of Revenues, Expenses and Changes ~n Retained Earnings - All Proprietary Fund Types 14 Combined Statement of Cash Flows - All Proprietary Fund Types 16 Notes to F~nanc~al Statements 21 Required Supplemental Information - Schedule of TMRS Funding Progress and Contributions 47 Comb~mng and Ind~wdual Fund Financial Statements and Schedules - Comb~mng Balance Sheet - All Special Revenue Funds 50 Combining Statement of Revenues, Expenditures and Changes ~n Fund Balances - All Special Revenue Funds 52 Schedule of Revenues, Expenditures and Changes ~n Fund Balances - Budget and Actual - Special Revenue (Recreation, Pohce Confiscation, Tourist and Convention, and Emdy Fowler L~brary) Funds - (Budget Bas~s) 54 Combining Balance Sheet - All Capital Projects Funds 58 Comb~mng Statement of Revenues, Expenditures and Changes ~n Fund Balances - All Capital Projects Funds 60 Comb~mng Balance Sheet - All Enterprise Funds 64 Comb~mng Statement of Revenues, Expenses and Changes ~n Retained Earnings - All Enterprise Funds 68 Combining Statement of Cash Flows - All Enterprise Funds 70 Schedule of Revenues, Expenses and Changes ~n Retained Earnings - Budget and Actual - (Budget Bas~s) - All Enterpnse Funds 74 Comb~mng Balance Sheet - Utd~ty System 76 Combining Statement of Revenues, Expenses and Changes ~n Retained Earmngs - Utd~ty System 80 Page Comb~mng Statement of Cash Flows - Utd~ty System 82 Combining Balance Sheet - All Internal Service Funds 88 Combining Statement of Revenues, Expenses and Changes ~n Retained Earnings - All Internal Service Funds 90 Comb~mng Statement of Cash Flows - All Internal Serwce Funds 92 Schedule of Revenues, Expenses and Changes ~n Retained Earmngs (Deficit) - Budget and Actual - (Budget Bas~s) - Materials Management, Fleet Serwces, Motor Pool, Commumcat~ons, and Technology Serwces Funds 94 Combining Balance Sheet - All Trust and Agency Funds 98 Statement of Changes ~n Assets and L~abd~t~es - All Agency Funds 100 Supplemental Fmancml Information - General Fund Supplemental Information - Schedule of Expenditures - Budget and Actual 104 STATISTICAL SECTION (UNAUDITED) Table 1 General Government Expenditures by Function - Last Ten Fiscal Years 114 2 General Revenues by Source - Last Ten F~scal Years 116 3 Property Tax Lev~es and Collections - Last Ten F~scal Years 118 4 Assessed and Estimated Actual Value of Taxable Property - Last Ten F~scal Years 120 5 Property Tax Rates and Tax Lewes - D~rect and Overlapping Governments - Last Ten F~scal Years 122 6 Special Assessment Collections - Last Ten F~scal Years 123 7 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita -- Last Ten F~scal Years 124 8 Computation of Legal Debt Margin 126 9 Computation of D~rect and Overlapping Debt 127 10 Ratio of Annual Debt Serwce Expenditures for General Bonded Debt to Total General Expenditures -- Last Ten F~scal Years 128 11 Revenue Bond Debt Serwce Coverage - Last Ten F~scal Years 130 12 Property Value, Construction and Bank Deposits -- Last Ten F~scal Years 132 13 Pnnclpal Taxpayers 135 14 Schedule of Insurance ~n Force 136 15 Demographic Stat~stms - Last Ten Fiscal Years 138 16 M~scellaneous Statistical Data 140 of 215 E McKINNEY DENTON, TEXAS 76201 * (940) 349 8200 · FAX (940) 349-823~; January 24, 2001 TO The Honorable Mayor, Members of City Council and Citizens of the C~ty of Denton It ~s w,th great pleasure we present to you a copy of the Comprehensive Annual F~nanc~al Report of the City of Denton for the fiscal year ended September 30, 2000 The responslbihty for both the accuracy of the presented mformat~on and the completeness and fairness of the presentation of the data, including all d~sclosures, rests w~th the C~ty To the best of our knowledge and behef, the enclosed data ~s accurate ~n all mate.al respects and ~s reported ~n a manner designed to present fairly the end results of operation of the various funds and account groups of the C~ty All disclosures necessary to enable the reader to gain an understanding of the C~ty's hnanc~al activities have been ~ncluded The Comprehensive Annual F~nanc~al Report ~s presented in three sections ~ntroductory, financial, and statistical The ~ntroduotory section includes th~s transmittal letter, the C~ty's organizational chart, and a hst of pnnc~pal officials The financial section ~ncludes the general purpose flnanc*al statements, the combining and ~nd~wdual fund and account group financial statements and schedules, as well as the Auditor's report on the financial statements and schedules The statistical section includes selected financial and demographic ~nformat~on, generally presented on a multi-year bas~s Th~s report includes all funds and account groups of the C~ty The City prowdes a full range of services, such as pohce and hre protection, sohd waste serwces, the construcUon and maintenance of highways, streets, and infrastructure, and water, wastewater, and electric utlht~es Economic Condition end Outlook F~scal year 1999-2000 brought a variety of new and expanding businesses to Denton w~th a total net assessed value of 849,304,972 · Sirius Enterprise, a manufacturer of component parts for the eleotromc/ telecommunications ~ndustry, completed a l O,O00-square-foot building valued at 8500,000 · Trinity Industries, a Iongt~me Denton company, retooled its current production faod~ty ~n order to beg~n manufactunng bridge g~rders and move away from the production of "Dedicated to Quality Service' www c~tyofdenton com Transmittal Letter (continued) rad cars Th~s change added $1 5 mdhon to the local tax base and allowed Tnmty to retain 80 jobs in Denton · Tetra Pak, an ~nternat~onal aseptic packaging company for food products, added a 26,000-square-foot research center w~th a value of 81 23 m~lhon · Comfort Suites Motel completed a 38,300-square foot motel along Interstate 35 · Taco Cabana, a growing national restaurant chain, located a new 3,601-square-foot facd~ty ~n Denton · Another national retad chain, Dollar General, budt two new stores ~n Denton · James Wood AutoPark, a local auto dealership, ~nvested ~n ~ts Denton facd~ty w~th a 83 2 mdhon expansion · In addition to several professional office budding projects, there were three office park projects developed ~n 2000 The Dove Creek Office Park, the Southndge Office Park, and the T~mber R~dge Office Park added 26,853 square feet of ofhce space and had a combined value of $1 3 mdhon · Denton's regional shopping mall, Golden Tnangle Mall, completed ~ts 83 5 mdhon upgrade announced ~n late 1999 · Northstar Bank Denton's only locally owned bank, ~s currently constructing a new 25,0~-8-square-foot bank budding · The Federal Emergency Management Agency announced the consohdat~on of ~ts Denton call center operations ~nto an 82,000-square-foot facrl~ty w~th an expected value of $14 mdhon · Due to recent economic trends, Peterbdt Motors Company, after a recent $16 mdhon ~nvestment, has deo~ded to temporarily ehm~nate the 650 pos~t~ons created by the expansion Major Inltlat,ves The C~ty has continued to experience moderate growth over the last ten years However, several factors ~nd~cate the pace of growth ~ncreasmg substantially Based upon budding permit data, the growth rate for the C~ty ~s expected to be 6% Though growth produces additional demands on City serwces, ~t also provides additional resources to meet those demands and add additional serwces Sales tax, the largest revenue source for the C~ty's General Fund, has ~ncreased steadily s~nce early 1999 Actual sales tax revenue received ~n fiscal year 2000 was 3 0% h~gher than budgeted and 9 0% higher than the pnor year receipts The C~ty's tax base has grown considerably over the last few years, allowing the C~ty to maintain ~ts current tax rate from 1998-1999, whde continuing to expand and ~mprove current services The ~ncrease *n the certified appraised value over the last five years has been ~n excess of 30% Transmittal Letter (continued) Several major ~mtmt~ves focused on the pubhc safety area m 1999-2000 A dedmated fire truck (1 O0 feet} w~th a full complement of equipment was purchased to prowde serwce for h~gh-nse and other large structures W~th the addition of the new fire truck, 15 additional fireflghte'rs have been h~red and trained to staff the new truck An additional ambulance crew also went omhne m 2000 As Denton continues to grow, the need for public transportation w~ll be a priority The C~ty was, able to purchase two additional buses, whmh allowed the transportation department to add additional routes, as well as extend service hours and market and promote use of pubhc transportation Due to the increasing growth of the C~ty, ~t was essentml for the Comprehensive Plan to be completed th~s year Since completion of the Plan m 1999-2000, the next pnonty wdl be to rewr~te the Development Code to plan for the next stage of growth Improvements to ex~stmg facilities were a major concern for Parks and Recreation th~s year One-time resources were used to complete the expansion and renovation of Dema and North Lakes Recreation Centers Additional funding was used to complete four additional hghted soccer fields and three new hghted football fields Conceptual design plans have also begun on the joint venture between the C~ty of Denton and Denton Independent School D~stnct for an Aquatic Park whmh c~t~zens approved m the 1998-1999 bond elect~on In a continual effort to close the gap between the c~ty's pay plan and the market, the C~ty of Denton ~ncreased ~ts Texas Mumclpal Retirement System (TMRS) contribution from 6% to 7% The c~ty also increased the F~remen's Relief and Retirement Fund from 9% to 10% Rnanclal Information The C~ty's management team ~s responsible for estabhshmg and maintaining internal controls designed to ensure that the assets of the C~ty are protected from loss, theft, or misuse and to ensure that adequate accounting data is compded to allow for the preparation of financial statements ~n conformity w~th generally accepted accounting principles Internal controls are designed to provide reasonable but not absolute assurance that these objectives are met The concept lof reasonable assurance recogmzes that (1) the cost of the controls should not exceed the benefits likely to be derived and (2)the valuation of cost and benefits requires estimates and judgments by management Single Audit As a remplent of federal and state grant awards, the C~ty ~s also responsible for ensunng that adequate internal controls are in place to ensure comphance with applicable state and federal laws and regulations These controls are subject to periodic evaluation by management and the outside auditors of the City's financial statements As a part of the C~ty's s~ngle audit, tests are conducted to determine the adequacy of the internal controls related to the federal awards programs and to determine that the C~ty has comphed w~th applicable laws and regulations The result of the C~ty's s~ngle audit of the fiscal year ended September 30, 2000, prowded no instances of material weaknesses in ~nternal control or reportable violations of apphcable laws and regulations Transmittal Letter (continued) Budgeting Controls The C~ty maintains budgetary controls to ensure comphance w~th legal prows~ons embodied m the annual appropriated budget approved by the C~ty Council Act~wt~es of the General Fund, Special Revenue funds (Recreation Fund, Pohce Confiscation Fund, Tourist and Convention Fund, and Emdy Fowler L~brary Fund), Debt Serwce Fund, Enterprise Funds and Internal Serwce Funds (excluding R~sk Retention) are ~ncluded m the annual operating budget A capital ~mprovement plan ~s approved each year The level of budgetary control (~ e, the level at which expenditures cannot legally exceed the appropriated amount) ~s estabhshed by function act~wty w~thm an md~wdual fund The C~ty maintains an encumbrance accounting system as one techmque of accomplishing budgetary controls and a techmque of budgetary "lock out" which wdl prevent a transaction from exceeding legally approprmted budgetary amounts As demonstrated by the statements and schedules ~ncluded ~n the flnancml section of th~s report, the C~ty continues to meet ~ts respons~bd~ty for sound financial management General Governmental Functions The following schedule represents a summary of General Fund, Specml Revenue Funds and Debt Serwce Fund revenues for the fiscal year ended September 30, 2000, and the amount and percentages of mcrease/(decrease) in relation to prior year amounts The amounts in this schedule are expressed m thousand of dollars Increase % of % of (Decrease) Increase Revenues Amount Total 1999 from 1999 (Decrease) Taxes $30,115 55 55% $27,360 $2,755 1007% L~censes and Permits 442 82 374 68 18 18 Franchise Fees 9,959 18 37 9,283 676 7 28 F~nes and Forfeitures 2,680 4 94 2,856 (176) (6 16) Fees for Serwce 3,360 6 20 2,513 847 33 70 Investment 1,060 1 96 813 247 30 38 Intergovernmental 4,805 8 86 4,913 (I 08) (2 20) M~scellaneous 1,789 3 30 1,133 656 67 90 TOTAL $54,210 100 00% 949,245 t~4,965 10 08% The largest percentage ~ncrease ~n General Fund Revenues from a continual source was in the Fees for Serwce revenue category This increase is attributed to Increases in ex,sting recreational fees, as well as new user fees These fees are intended to recover an appropriate level of the City's cost of dehvenng recreation serwces Additional revenue has been generated through ~ncreased act~wty at the Mumc~pal A~rport Miscellaneous revenue increased due to a reallocation of charges from pnor year Two new large res~dentml developments, Robson Ranch and Wdlow Lakes, made the greatest ~mpact to ~ncrease L~censes and Permits for 1999-2000 H~gher ~nterest rates ~n 1999-2000 resulted ~n an ~ncrease ~n Investment revenue Transmittal Letter (continued) The follow~ng schedule presents a summary of General Fund, Special Revenue Funds, and Debt Servme Fund expenditures for the fiscal year ended September 30, 2000, and the percentage of ~ncrease/(decrease) m relation to prior year amounts Once again, the amounts stated ~n thru schedule are expressed ~n thousands Increase % of (Decrease) % of Increase Expenditures Amount Total 1999 from 1999 (Decrease) Current General Government $14,533 26 42% $11,620 $2,913 25 07% Pubhc Safety 22,679 41 23 19,061 3,618 18 98 Pubhc Works 4,888 8 89 5,098 (210) (4 12) Parks and Recreation 5,341 9 71 4,414 927 21 00 Capital Outlay 683 1 24 1,470 (787) (53 54) Debt Serwce Pnnc~pal 3,601 6 54 4,132 (531) (12 85) Interest and Rscal Charges 3,285 5 97 2,206 1,079 48 91 TOTAL $55,010 100,00% $48,001 $7,009 14 60% The most s~gmflcant ~ncrease ~n General Fund expenditures was ~n Debt Serwce Interest Th~s ~ncrease was due to general obhgat~on bonds and cert~hcates of obhgat~on being ~ssued ~n 1999 w~th payments beg~nmng ~n 2000 Pubhc Safety ~ncreases were attributable to the addition of a dedmated truck company consisting of 15 flreflghters to serwce h~gh-r~se and other large structures A 5% across-the-board wage ~ncrease for all c~wl serwce employees was also ~ncluded ~n th~s year's expenditures Parks and Recreation ~ncreased spending dunng 1999-2000 as a result of additional staff h~red to prowde an increased level of park maintenance across the c~ty The most s~gmhcant decrease was ~n Capital Outlay, a result of one-time expenditures ~n 1998-1999 General Government expenditure ~ncreases were attributable to increases in personal services, which ~nclude pay plan adjustments to maintain a competitive workforce, as well as an ~ncrease m health care and related costs, a~rport matching funds for new grants, additional staff for facd~t~es, court, and planning, eight additional vehicles, and an increase ~n facd~tles improvement funding General Fund Balance The fund balance of the General Fund ~ncreased by 12% ~n 2000 The fund balance prowdes the C~ty w~th approximately two months of expenditures However, $932,374 of the balance ~s reserved for encumbrances Proprietary Operatione Enterprise Operations The C~ty's Enterprise operations consist of a utd~ty system that prowdes for electnc, water and wastewater serwces The operation of residential, commercial, and landfill sohd waste services is also an Enterprise operation, as is Budding Inspections Transmittal Letter (continued) There was no change in res~dentml or commercial base electric rates The average bill for a res~dentml customer using 1000 kwh per month d~d ~ncrease to $89 49 per month due to an increase ~n the Energy Cost Adjustment (ECA) rate There was no rate change for water retad rates The average bdl for a residential customer using 10,400 gallons per month was $36 59 per month Impact Fees generated $2,623,242 m add~tmnal funds to be used to offset the cost of adding new treatment capacity to the water system There was no increase ~n wastewater rates m 1999-2000 The average residential wastewater bdl was $22 79 per month Wastewater also generated Impact Fees of $544,272 to be used to offset the cost of additional wastewater treatment facd~t~es There was no change ~n the Sohd Waste res~dentml rates The C~ty made rnmor adjustments to commercial and landfill rates Internal Service Operations The Internal Serwce Operations consist of the Materials Management, Fleet Serwces, Motor Pool, Communmat~ons, Rink Retention, and the Technology Serwces Funds The Materials Management Fund accounts for the financing of goods provided by the Warehouse to other C~ty departments The Fleet Serwces Fund accounts for the financing of goods and serwces prowded by the Mumc~pal Garage to other departments w~th~n the c~ty The Motor Pool Fund ~s responsible for the purchase of C~ty vehicles not budgeted ~n other funds The Commumcat~ons Fund accounts for the financing of the C~ty's cornmumcatmn system, ~nclud~ng the 800 mhz radio system and the internal telephone network The R~sk Retention Fund accounts for the accumulation of resources for the payment of workers compensation, general habd~ty claims, and ~nsurance policies The Technology Serwces Fund provides computer programming serwces, systems analys~s, ~mag~ng, print shop, and office serwces to C~ty departments F~duciary Operations Expendable Trust Funds Expendable Trust Funds account for several small trust funds which are varied m purpose Agency Funds The Agency Funds consist of Payroll and Other agency funds The Payroll fund ~s responsible for the collection and payment of the C~ty's payroll and associated habd~t~es The other agency funds account for various accumulations of employee funds Debt AdmimstratJon At September 30, 2000, the C~ty had $40,105,923 ~n General Obligation Bonds outstanding, $3,141,222 m a Note Payable to the Corps of Engineers, $20,881,000 ~n Certificates of Obhgat~on, and $168,205,000 of Utd~ty System Revenue Bonds Moody's Investor's Serwce, Inc has gwen the C~ty's General Obhgat~on Bonds a rating of "Aa3" and the Certificates of Obhgat~on an "Al" rating Standard and Poor's Corporation has gwen both the C~ty's General Obhgat~on Bonds and Certificates of Obhgat~on an "AA-" rating Utd~ty System Revenue Bonds have maintained an Transmittal Letter (continued) "A+" rating from Standard and Poor's Corporation and an "Al" rating from Moody's Investor's Service, Inc The C~ty has developed a plan for ~ssu~ng annual General Obligation Bonds that are approved by voters m a capital ~mprovements plan Certificates of Obligation are used for short-term construction projects and financing motor pool vehicles, other equipment, and landfill Cash Management The C~ty follows an actwe program of cash management, keeping all temporarily ~dle funds m mterest-beanng accounts These accounts are ~n the form of NOW accounts, certificates of deposits, Local Government Investment Pools, Treasury ~ssues and federal government agency ~nstrumentaht~es On September 30, 2000, the annuahzed y~eld on ~nvestments was 5 88%, compared to 5 42% and 5 84% for the same penod ~n 1999 and 1998, respectively Investable funds as of September 30, 2000, were $215 2 mdhon, which ~s an ~ncrease from $165 8 mdl~on m 1999 and $159 4 mdl~on ~n 1998 The C~ty's ~nvestment pohcy ~s to safeguard assets w~th a m~mmal amount of nsk, whde ma~nta~mng the necessary level of hqu~d~ty and maximizing the y~eld on ~nvestments Accordingly, all of the C~ty's deposits are e~ther ~nsured by the Federal Deposit Insurance Corporation, the Federal Sawngs and Loan Insurance Corporation, or are collaterahzed by governmental securities All collateral for deposits are held by a third-party financial institution's trust department ~n the C~ty of Denton's name The ~nvestments of the Deferred Compensation fund, ~n which the C~ty participates, are held separately from those of other C~ty funds by an outside trustee appointed by the C~ty State statutes authonze the C~ty to ~nvest m obligations of the U S Treasury and U S agencies, obligations of the State of Texas and related agencies, fully collaterahzed repurchase agreements, pubhc fund ~nvestment pools, SEC-registered no-load money market mutual funds, fully collaterahzed certificates of deposit, and mumc~pal secuntms of any state rated "AA" or above by a nationally recognized rating service R~sk Management The C;ty has maintained a very aggresswe program to increase safety awareness and training Incentive programs, transitional duty, medical case management, and the implementation of an Occupational Health cl;mc w~th a full-t~me Occupational Health nurse should continue to contain Workers' Compensation expenditure growth ~n the future Legal expenditures for general Imbd~ty issues have increased steadily over the past three years and are anticipated to continue dur, ng the upcoming fiscal year Projected figures are based on actuarial data Workers' General Program Compensation L~abd~ty Cost Transfer FY '99-'00 Actual $355,000 $105,000 $460,000 $303,000 FY '00-'01 Projected 375,000 125,000 500,000 378,000 Independent Audit The C~ty Charter requires an ~ndependent audit of the accounts of the C~ty by an independent auditor The accounting firm of Delo;tte & Touche LLP was selected by the C~ty Councd to perform the annual audit In addition to meeting the requirements set forth ~n the C~ty Charter, the audit was also designed to meet the requirements of the S~ngle Audit Act Amendments of 1996 and related OMB C~rcular A-133 Transmittal Letter (continued) Awards The Government F~nance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence ~n Financial Reporting to the C~ty for ~ts Comprehensive Annual Fmancml Report for the fiscal year ended September 30, 1999 In order to be awarded the Certificate of Achmvement ~n F~nancml Reporting, the C~ty pubhshed an easily readable and efficiently orgamzed Comprehenswe Annual F~nancml Report Th~s report satisfies both generally accepted accounting principles and apphcable legel requirements The Certificate of Achievement ~s held for a penod of one year only We beheve our current Comprehenswe Annual Financial Report continues to meet the Certificate of Achievement requirements, and we are submitting ~t to the GFOA to determine its ehg~bd~ty for another cert~hcate The C~ty also recewed GFOA's award for D~st~ngumhed Budget Presentation for ~ts 2000 annual budget In order to quahfy for the D~st~ngu~shed Budget Presentation Award, the C~ty budget document was judged according to ~ts comphance w~th specific gu~dehnes estabhshed by GFOA These gu~dehnes help ensure that Denton's budget ~s d~st~ngu~shed as an operations guide, financial plan, pohcy document, and commumcat~on dewce The C~ty has submitted ~ts 2001 budget to GFOA to determine ~ts ehg~bd~ty for another certificate We beheve ~t continues to meet the D~stmgu~shed Budget Presentation Award criteria The C~ty's Treasury department was recogmzed m 2000 by the Mumc~pal Treasurers' Assocmt~on of Umted States and Canada (MTA US & C) by rece~wng the Cash Handhng Program Cert~flcatmn MTA certified the C~ty's cash handhng program by fulfdhng the elements that the Assocmt~on deems as necessary components of a written investment pohcy, which include submitting the cash handhng procedures, cash handhng leg~slatmn, and cash handhng training syllabus The attainment of th~s cert~flcatmn ~s a positive step toward the safeguarding of pubhc funds The C~ty's Purchasing Department aJso earned the Excellence in Procurement Award for three consecutive years, 1998, 1999, and 2000, from the National Purchasing Institute, Inc (NPI) Th~s award ~s achieved by those orgamzat~ons that demonstrate excellence m procurement by ach~ewng a h~gh score on standard~zed criteria designed to measure innovation, profess~onahsm, productw~ty, and leadership NPI represents purchasing officials employed by national, state, and local governments, educational ~nst~tut~ons, and tax-supported and pubhc ent~t~es throughout the country Acknowledgements We would hke to thank the C~ty Councd for their strong leadership and faithful support to the C~ty that helped make the presentation of th~s report possible We would also hke to thank the F~scal and Mumcrpal Serwces staff, department d~rectors and d~ws~on heads for their dd~gent efforts m the preparation of the annual flnancml report A tremendous amount of t~me and effort went ~nto the development of th~s report, especially by the Accounting staff Kathy Dubose, CPA Gary A Calmes, CPA Assistant C~ty Manager of Controller Rscal and Mumc~pal Serwces CITY OF DENTON ORGANIZATIONAL CHART C~tlzens C~ty Council C~ty Attorney C~ty Manager I ~!!!!!pal Judge , Internal Aud~ D~rector of Management and Operation Analys~s and Public Information Services Public Information Services Cable Telewslon Assistant C~ty Manager Asslsta~ C,ty Manager I Assistant City Manager Assistant CIty ManagerI of Plamng and of F~scal and Mun~pal of Utilizes of Public Safety and Development Services Services Transportation Operations P,a,,,,g a,~ Oeve,opr~t I Fiscal Operations Ii Electric Operat,ons t Police Deparlmentl An,mai Controll / Engineering and Transportation Management and Budget Water Operations Code Enforcement ~',, Fae,,,t,,s Ua,age~,e,t I L,~rer~ I WaetewaterO,,ret,o,, I F,reOe,a,me,tI Con~mu,,¥ De,e,opme,. 1' H,me, Reso,rc. I Dra,nage 0peter,one I Public Transporter.onI Certificate of Achievement for Excellence in Financial Reporting Presented to City of Denton, Texas For ~ts Comprehensive Annual Financial Report for the F~scal Year Ended September 30, 1999 A Certificate of Achievement for Excellence in Financial Reporttng is presented by the Government Finance Officers Assoc~abon of the United States and Canada to government un~ts and pubhc employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards m government accounting and financial reporting ~ Executive D~rector CITY OF DENTON List of Prmc, pal Off,c, als September 30, 2000 ELECTED OFFICIALS Title Name Mayor Euhne Brock Mayor Pro-Tem Rom Beasley Councdmember Mark Burroughs Councdmember M~ke Cochran Councdmember Ne~l Durrance Councdmember Sandy Knstoferson Councdmember Carl G Young, Sr CITY OFFICIALS Title Name C~ty Manager M~chael W Jez Ass;stant C~ty Manager of F~scal and Mumc~pal Serwces Kathy L DuBose Assistant C~ty Manager of Utd~t~es Howard Martin Assistant C~ty Manager of Development Serwces Dawd Hdl Assistant C~ty Manager of Pubhc Safety and Transportation Operations Jon Fortune C~ty Attorney Herbert Prouty Mumc~pal Judge Robin Ramsay C~ty Secretary Jennifer Walters of Combined Financial Statements Overview Deloitte & Touche LLP Smte 2950 301 Commerce Street Fort Worth Texas 76102 Tel (817) 347 3300 Fax (817) 336 2013 wwwu..,o, . om Deloitte &Touche INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Members of the City Council of the City of Denton, Texas We have audited the accompanying general purpose financial statements of the C~ty of Denton, Texas ("City") as of September 30, 2000, and for the year then ended, hsted in the foregoing table of contents These general purpose financial statements are the responsibility of the City's management Our respons~blhty xs to express an oplmon on these general purpose financial statements based on our audit We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained ~n Government Audmng Standards Those standards reqmre that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material m~sstatement An audit includes examining, on a test bas~s, ewdence supporting the amounts and disclosures in the general purpose financial statements An audit also ~ncludes assessing the accounting prmmples used and s~gmficant estimates made by management, as well as evaluating the overall financial statement presentation We beheve that our audit provides a reasonable basis for our oplmon In our opinion, the general purpose financml statements referred to above present fmrly, in all material respects, the financml pos~t~on of the City as of September 30, 2000, and the results of ~ts operations and the cash flows of ~ts proprietary fund types for the year then ended ~n conformity with accountxng pnnclples generally accepted m the United States of America Our audit was conducted for the purpose of forming an oplmon on the general purpose financml statements taken as a whole The combining and ln&vldual fund and account group financial statements and schedules listed m the foregoing table of contents under supplemental statements and schedules are presented for purposes of additional analysis and are not a required part of the general purpose financml statements of the City Th~s add~Uonal information is the responsibility of the management of the Cxty Such additional information has been subjected to the auditing procedures apphed In our audit of the general purpose financial statements and, in our op~mon, is fairly presented in alt material respects when considered ~n relation to the general purpose financial statements taken as a whole Deloitte Touche -l- Tohmatsu In accordance w~th Gove~ nment Audtttng 9anda~ da we have also ~ssued our report dated lanuary 24~ 2001, on our constderat~on of Clt5 s ~ntemal control ovm finanmal reporting and our tests of ~ts comphance w~th ccrtam provisions of laws, regulations, contracts, a~ld grants That report is an ~ntegral part of an audit performed m accordance with Government Audmng Standardv and should be read in conjuncnon w~th th~s report m conszdenng the results of our audit January 24, 2001 -2- CITY OF DENTON, TEXAS -3- Comprehensive Annual Financial Report CITY OF DENTON, TEXAS COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 2000 Governmental Fund Types ASSETS AND OTHER DEBITS General Special Revenue Debt Serwce Capital Pro~ects Cash and deposits (Note 2) $ $ 56,881 $ 416,541 $ Investments (Note 2) 2,222,643 174,625 25,074 201 Receivables (net of allowances for uncollectlbles) - Taxes 1 342,923 247 029 Accounts _ Unbdled utd~ry serwce _ Accrued interest 212,342 8,267 425,342 Other 758,738 86,957 80,530 Due from other funds (Note 11) 6 164,296 703,580 274,148 131,943 Due from other governments 1,137,905 46,375 Merchandise inventory _ _ Prepaid ~tems _ _ Long term leases _ _ Deferred bond ~ssuance costs - _ Restricted assets Cash and deposits (Note 2) - - _ Investments (Note 2) - _ _ Accounts receivable - _ Accrued ~nterest - _ Unb~lled - _ Due from other funds (Note 11) - - - Other - - Advances to other funds (Note 11) - - F~xed assets {net, where apphcable of accumulated depremat~on) (Note 3) - - Amount available ~n Debt Serwce Fund - - Amount to be prowded for retirement of long term hablht~es _ Total Assets and Other Debits , $10 700,942 $2,168,215 $ 937,718 $25,758,391 (Continued) The accompanying notes to financial statements are an ~ntegral part of th~s statement -4- Comprehensive Annual Financial Report CITY OF DENTON, TEXAS F~duc~ary Totals Prophet _y_y Fund Types_~_ Fund Type Account Groups Internal Trust and General F~xed General Long September 30, September 30, Enterprise Serwce Agency Assets Term L~abd~tms 2000 1999 150,498 $ - $1,083,814 $ $ $ 1,707,734 $ 10 805 001 557,069 1,066,402 937,539 30,032,479 43,108,919 - 1,589 952 1,431,741 8,352,564 - 8,352,564 9,256,246 6,938,195 - 6,938 195 8 550,379 288,213 3,431 937,595 925 589 936,805 15,431 11,314 1,889,775 1,035,252 1,757,132 - 16,469 9,047,568 5 812 481 ~ - 1,184,280 2,191,085 722,419 3,446,849 4,169,268 3 648,102 8,833 - 8,833 15,742 32,590 - 32,590 1,174,865 - - 1,174,865 2,073,392 - - 14 246 107 171,352,871 12,959,740 - 184,312 611 121 350,516 7,849,642 - - 7,849,642 197 712 1,003,179 227,659 - 1,230,838 271,960 2,919,679 - - 2,919,679 7,333,922 112,410 - 7,446 332 3,307,081 91,323 - - 91,323 2,551,049 - - 2,551,049 879,784 221,221,986 15,139,636 - 147,334,934 - 383,696,556 355,880,307 - - 822 913 822,913 1,131,067 - - 53,496,088 53,496,088 48,129,312 ~435~201,4.1t ~33,012,981 ~2,049,13~6 $147,334,934 $54,319,00~1 $711,482,729 $634,247,775 -5- Comprehensive Annual Financial Report CITY OF DENTON, TEXAS COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS (Continued) SEPTEMBER 30. 2000 Governmental Fund Types LIABILITIES EQUITY AND OTHER CREDITS General Spemal Revenue Debt Serwce Cap~tal Prolects Liabilities Accounts payable and accrued hab~htms $1,016 293 $ 332,561 $ 2,163 $ 511,203 Reta~nage payable - - 73,192 Accumulated unpaid compensated absences (Note 4) _ Deposits 162 - Payable from restricted assets Accounts payable and accrued expenses - Reta~nage payable _ Due to other funds (Note 11 ) _ Advances from other funds (Note 11) - Accrued Interest Revenue and general obhgatlon bonds payable, current (Note 4) Deferred revenue ~mpact fees - Claims payable INote 8) - Accrued Interest - Due to other funds (Note 11) 151,323 856,316 112,642 1,984,360 Other hab~lmes - 43,985 Advances from other funds (Note 11) - Deferred revenues 64,352 429,274 43,176 Leases payable (Notes 4 and 5) - - _ General obhgat~on bonds payable (Note 4) - - _ Certificates of obhgatmn (Note 4) - _ Revenue bonds payable (net of bond d~scount) (Note 4) - Deferred amount on refunding - _ _ Notes payable INote 4) - _ _ Landfill closure/postclosure costs INote 13) _ _ _ Total Liabilities $1,232,130 $1,662,136 , $114,805 $2,611,931 (Continued) The accompanying notes to financial statements are an ~ntegral part of th~s statement -6- Comprehensive Annual Financial Report CITY OF DENTON, TEXAS F~duc~ary Totals Propn~tary Fund Types Fund Type Account Groups (Memorandum Only) Internal Trust and General F~xed General Long- September 30, September 30 Enterprise Serwce Agency Assets Term L~abd~t~es 2000 1999 9 7,528,381 9 498,838 9868,745 9 - 9 9 10,758,184 $ 26,032,866 25,914 - - 99,106 227,413 1,024,575 170,257 5,189,147 6,383,979 6,129,871 1,137,001 - - 1,137,163 1,547,311 1,643,267 149,454 - - 1,792,721 1,873,862 49,498 - - 49,498 24,727 - 620,153 1,151,231 620,153 - 2,397,865 - - 2,397,865 3,397,152 - - - 3,397,152 2,193 721 6 793,354 - - - 6,793,354 5,299,898 3,167,514 - 3,167,514 473,460 - 473,460 506 488 30,839 - 30,839 38 578 9,658,781 3,105,961 4,364 - 15,873 747 7,968,331 - 43,985 75,310 153,184 - 153,184 879,784 - 536,802 319 687 69,027 750,781 819,808 1,786 584 1,690,570 36,328 38,379,025 40 105,923 38,888,672 4,722,145 5,215,453 10,000,048 19,937,646 19,433 114 - 161,399,153 113,325,000 161,399,153 - (510,379) - (510,379) (437,818) 3,141,222 - 3,141,222 3,135,454 _ 2,471,435 2,039 447 2,471,435 $2t0,510,785 #9,749,617 $873,109 $ 954,319,001 $281,073,514 ~232,439,531 -7- Comprehensive Annual F;nanclal Report CITY OF DENTON, TEXAS COMBINED BALANCE SHEET - ALI. FUND TYPES AND ACCOUNT GROUPS (Concluded) SEPTEMBER 30, 2000 Governmental Fund Types LIABILITIES EQUITY AND OTHER CREDITS General Special Revenue Debt Service Cep~tal Projects Fund Equity Contnbuted capital - (net, where applicable, of accumulated depreciation) $ $ $ $ Investment ~n general fixed assets {Note 3) Retained earmngs - Reserved for bond retirement (Note 4) Reserved for cap~tal projects Reserved for fleet replacement - Reserved for landfill closure {Note 13) - Reserved for landfill closure debt retirement _ Reserved for rate stabd~zat~on - Reserved for emergency/working capital - Reserved for automated routes - Reserved for plant regulation/ rehab~htat~on - Reserved for SCADA/fllter control - Reserved for water tower pa~nt~ng - Reserved for infrastructure financing - - Reserved for 0 & M contmgency - - _ Reserved for future claims - - _ Reserved for capital construction - _ Reserved for lake enwronment restoration - - Reserved for dramage - - _ Unreserved - - Fund balances - Reserved for debt serwce - - 822,913 - Reserved for encumbrances 932,374 209,773 3,139,388 Reserved for cap~tal projects - - 20,007,072 Unreserved - Undesignated 8 536,438 296,306 - Total Equity and Other Credits 9,468,812 506,079 822,913 23,146,460 Total Llabllitiee, Eqmty and Other Credits $10,700,942 $2,168,215 $937,718 $25,758,391 The accompanying notes to financial statements are an ~ntegral part of this statement -8- Comprehensive Annual Financial Report CITY OF DENTON, TEXAS F~duclary Totals Propn~tar¥ Fund Types Fund Typ~e Account Groups (Memorandum Only) internal Trust end General F~xed General Long September 30, September 30 Enterprise Serwce A~lency Assets Term L~abd~t~es 2000 1999 25,776,727 $ 3,427,596 $ - $ ~ - $ 29,204323 $ 20,130,486 - - 147,334,934 - 147,334,934 142,069,878 28,791,042 - - 28,791,042 18,339,938 49,730,904 891,042 - 50,621,946 23,135,134 - 6,947,154 - - 6,947,154 10,355 595 1,501,772 - - - 1,501,772 1,117,867 293,000 - - - 293,000 398,100 65,645,000 - - - 65,645,000 66,585,000 5,250,000 - - - 5,250 000 5,250,000 250,000 - - - 250,000 - 1,000,000 - - 1,000,000 375,000 - - 375,000 1,350,000 - - 1,350 000 1,150,000 2,000,000 - - 2,000,000 2,000,000 1,000,000 - - 1,000,000 700,000 4,838,699 - 4,838,699 4,598,107 1,250,000 - - 1,250,000 1,050,000 90,000 - - 90,000 150,000 1,000,000 - - 1,000,000 1,000,000 39,387,181 7,158,873 - 46,546,054 73,689,409 - 822,913 1,131,067 - 4,281,535 3,073,522 - 20,007,072 17,416,609 - 1,176,027 10,008,771 8,467,532 224,690,626 23,263,364 7,176,027 147,334,934 430,409,215 401,808,244 $435,201,411 $33~012,981 ,$2049,136 $147,334,934 $54,319,001 $711,482,729 $634,247,775 Compreheneive Annual Flnanc,al Report CITY OF DENTON, TEXAS COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND (GAAP BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Governmental Fund Types General Special Revenue Debt Serwce Capital Projects REVENUES Taxes $24,166,751 $ 838,152 $ 5 110,062 $ Licenses and permits 441,831 - - Franchise fees 9 958 500 - - Frees and forfeitures 2 680 352 - Fees for serwces 2 037 392 1,322 131 Investment revenue 1 005,545 54 719 1 634,961 Intergovernmental 689 843 4,115 459 958 019 Contributions - M~scellaneous 1 442 097 288 553 58~147 857,578 Total Revenues 42 422 311 6 619 014 5,168 209 3,450 558 EXPENDITURES Current - General government 10 706 489 3,826,994 32 013 Pubhc safety 21 230,610 1 448 668 Public works 4 738 828 149 443 Parks and recreation 4 367 680 973 547 Capital outlay 377,614 305 222 5,042,061 Debt serwce - Pnnc~pal retirement 3,601 439 Interest and fiscal charges 3,285,462 42 082 Total Expenditures 41 421 221 6 703~874 6 886,901 5,116 156 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1 001 090 (84 860) (1 718 692) (1 6651598) OTHER FINANCING SOURCES (USES) Proceeds of long term debt 6,625 000 Proceeds of refunding bonds _ Payment to refunded bond escrow agent - - Proceeds of capital Pease - - Operating transfers m 938 904 1,410 538 - Operating transfers (out) (925 576) (319,404) - (751 286) Total Other Financing Sources (Uses) 13,328 {319,404) 1,410 538 5,873 714 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 1 014,418 (404,264) (308,154) 4,208 116 Fund Balance - October I 6 454,394 910,343 1,131 r067 18,938 344 FUND BALANCE - September 30 $ 9 468,812 $ 506,079 $ 822,913 923,146,460 The accompanying notes to flnanmal statements are an ~ntegral part of th~s statement -10- Comprehensive Annual Financml Report CITY OF DENTON, TEXAS Totals F~duc~ar¥ Fund (Memorandum Only) Type Year Ended Trustand September 30, September 30, Agency 2000 1999 930,114 965 $ 27,359 533 441,831 373,979 9 958,500 9,283 328 2,680,352 2,855,899 474,571 3,834,094 2 977 173 49 629 2 744,854 1 711,176 5,763,321 4,997 170 20,988 20,988 21,107 371247 2~6831622 1,811 201 582,435 58,242,527 51,390,566 26,091 14 591,587 11,644 189 22,679,278 19 060,713 4,888,271 5,098,539 5,341,227 4,413,869 34,772 5,759,669 16 605,028 3601439 4132192 3~327 544 2,205,565 60~863 60,189 015 63 160 095 5211572 (119461488) (1117691529) 6,625,000 9,526,351 5,538,780 (5,538,780) 2,159,279 2,349 442 2,416 072 (127) (11996,393) (3,645~219) (127) 6,978,049 10,456 483 521,445 5,031,561 (1,313 046) 654~582 30~085~30 31,401,776 91,176,027 $35,t20,291 ~ 30,088,730 -11 - Comprehensive Annual Financial Report CITY OF DENTON, TEXAS COMBINED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL, SPECIAL REVENUE (RECREATION, POLICE CONFISCATION, EMILY FOWLER LIBRARY, AND TOURIST AND CONVENTION FUNDS) AND DEBT SERVICE FUNDS (BUDGET BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30 2000 General Fund Variance Favorable Budget Actual (Unfavorable) REVENUES Taxes $23,650,375 $24,166,751 $ 516,376 L~censes and permits 173 100 441,831 268,731 Franchise fees 9,639,411 9,958,500 319,089 Frees and forfeitures 3 193,589 2,680,352 (513,237) Fees for serwces 2,370,954 2 037,392 (333,562) Investment revenue 810,000 1,005,545 195,545 Intergovernmental 660 955 689,843 28,888 M~scellaneous 318 439 1 442,097 1,123,658 Total Revenues 40 816,823 42,422,311 1,605 488 EXPENDITURES Current - General government 10,447,815 9,951,711 496,104 Pubhc safety 21,249,076 21,181,214 67,862 Pubhc works 5,390,508 5,241,210 149,298 Parks and recreation 4,343,294 4,288,914 54,380 Capital outlay 455,120 309,084 146,036 Debt serwce - Principal retirement - _ Interest and fiscal charges - _ Total Expenditures 41,885,813 40,972,133 913,680 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,068,990) 1,450,178 2,519,168 OTHER FINANCING SOURCES (USES) Operating transfers ~n 938,904 938,904 Operating transfers (out) (925,576) (925 576) Total Other Financing Sources (Uses) 13 328 13,328 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (1,055,662) 1,463,506 2,519,168 FUND BALANCE - October I 10,500,086 10,500,086 FUND BALANCE - September 30 $ 9,444 424 $t 1,963,592 $2,519,168 The accompanying notes to financial statements are an ~ntegral part of th~s statement -12- Comprehensive Annual Financial Report CITY OF DENTON, TEXAS Special Revenue Recreation, Pohce Confiscation Emily Fowler L~brary, and Tounst and Convention Funds Debt Serwce Fund Variance Varlanca Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) 830,000 $ 838,152 ~ 8,152 $ 5 000,000 ~ 5,110,062 ~ 110,062 1,222,846 1,173,627 (49,219) - 47,000 50,428 3,428 - - 30,000 32,281 2,281 58,147 58,147 2,129,846 2,094,488 (35,358) 5 000,000 5,168,209 168,209 1,153,553 1,175,458 (21,905) - - 25,000 22,874 2,126 - - 1,040,320 909,468 130,852 - - 81,338 80,641 697 - - - - 3,193,434 3,601,487 (408,053) - - 3 205,313 3,285 414 (80,101) 2,300,211 2,188,441 111,770 6,398,747 6,886,901 (488,154) (170,365) (93,953) 76,412 (1 398,747) (1,718,692) (319,945) - - ~ 957,531 1,410,538 453,007 (88,566) (88,566) - - (88,566) (88,566) - 957,531 1,410,538 453,007 (258,931) (182,,519) 76~412 (441,216) (308,154) 133,062 582,978 582,978 1,131,067 1,131 067 $ 324~,047 ~ 400,489 ~ 76,412 ~ 689,85,t .... ~,,, a22,9~,3 ....... ~,133,062 13 Comprehens,ve Annual Rnanclal Report CITY OF DENTON, TEXAS COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ALL PROPRIETARY FUND TYPES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Propnetary Fund Types Enterprise Internal Serwce OPERATING REVENUES Electric serwce $ 83,739,948 $ Water serwce 19,269,891 Wastewater service 12,066,564 Charges for services 10,480,937 15,465,169 Prermums - 5,719,158 M~scellaneous 230,319 Total Operating Revenues 125,787,659 21,184,327 OPERATING EXPENSES Purchased power 47,437,168 Fuel 11,894,046 Purchase of water 148,135 - Salaries and wages 17,286,076 3,189,665 Materials and supphes 2,779,467 7,676,823 Maintenance and repairs 4,786,288 496,863 Depremat~on 10,393,158 3,103,761 Insurance - 4,318,407 Adm~mstrat~ve cost 14,428,591 403,000 Closure/Postclosure cost 431,988 - M~scellaneous 8,429,496 2,944,542 Total Operating Expenses 118,012,413 22,133,061 Operating Income (Loss) 7,775,246 (948,734) NONOPERATING REVENUES (EXPENSES) Investment revenue 8,837,744 947,721 Interest expense and fiscal charges (7,647,456) (350,341) Other (22,706) 198,578 Total Nonoperating Revenues (Expenses) 1,167,582 795,958 Income (Loss) Before Operating Transfers 8,942,828 (152,776) OPERATING TRANSFERS IN (OUT) Operating transfers ~n 85,000 158,983 Operating transfers (out) (12,372) (584,660) Total Operating Transfers In (Out) 72,628 (425,677) Net Income (Loss) 9,015,456 (578,453) Add Depreciation of fixed assets acquired w~th contributed capital 2,730,919 1,264,288 Increase {Decrease) ~n retained earnings 11,746,375 685,835 RETAINED EARNINGS - October 1 as previously stated 190,369,217 19,149,933 Prior penod adJustment (Note 14) (3,201,693) - RETAINED EARNINGS - October 1 as restated 187,167,524 19,149,933 RETAINED EARNINGS - September 30 ~198,913,89,9 $19,835,788 The accompanying notes to financial statements are an ~ntegral part of th~s statement -14- Comprehens,ve Annual Financial Report CITY OF DENTON, TEXAS Totals (Memorandum Only) Year Ended September 30, 2000 September 30, 1999 ~ 83,739,948 $ 78,654,866 19,269,891 17,829,251 12,066,564 10,815,175 25,946,106 21,051,099 5,719,158 4,998,522 230,319 294,080 146,971,986 133,642,993 47,437,168 41,621,064 11,894,046 8,641,837 146,135 97,797 20,475,741 17,376,566 10,456,290 7,558,001 5,283,151 4,619,498 13,496,919 10,827,269 4,318,407 3,912,970 14,831,591 13,608,066 431,988 320,701 11,374~038 9,291,361 140,i145,474 117,875,130 6,826,512 15,767,863 9,785,465 8,046,908 (7,997,797) (6,366,895) 175,872 760,053 1 ~963~540 2,440,066 8,790,052 18,207,929 243,983 615,747 (597,032) (333,961) (~53,049) 281,786 8,437,003 18,489,715 3,995,207 2,706,298 12,432,210 21,196,013 209,'519,150 188,323,137 (3,1201,693) 206,/3!7,457 188,323,137 t~218~749 687 $209,~19,150 ...... -15- Comprehensive Annual F~nanc,al Report · CITY OF DENTON, TEXAS COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Propnetary Fund Types Enterprise Internal Serwce Cash flows from operating actiwties Cash received from customers $ 109,641,510 $ 24,650,539 Cash pa~d to employees for services (17,167,362) (3,130,600) Cash pa~d to suppliers (88,593,187) (17,310,191) Net cash provided by operating activities 3,880,961 4,209,748 Cash flows from noncapital financing activities Operating transfers to other funds (12,372) (584,660) Operating transfers from other funds 85,000 158,983 Advances to other funds (2,397,865) Advances from other funds 2,397,865 Principal payment on long-term advances from other funds (726,600) - Payment received on long-term advances to other funds 726,800 - Other sources from noncap~tal hnancmg - 118,169 Net cash provided by (used for) noncapital financing activities 72,628 (307,508) Cash flows from capital and related financing activities Proceeds from ~ssuance of refundmg bonds - - Payment to refunding bond escrow agent - - Proceeds received from contributed capital 10,312,619 3,055 Principal payments on revenue bonds and certificates of obhgat~on (5,505,560) (402,760) Interest and fiscal charges (6,573,444) (574,§54) Proceeds from *ssue of revenue bonds and certificates of obligation 54,880,000 250,000 Proceeds from ~ssue of notes payable 5,768 - Pr~nmpal payment on notes payable _ Proceeds from ~mpact fees 3,176,514 - Acquisition and construction of fixed assets (29,926,526) {6,031,069) Proceeds from sale of fixed assets - Net cash provided by (used for) capital and related financing activities 26,369,371 (6,755,428) Cash flows from investing activities Proceeds from sale and matunt~es of ~nvestment securities 122,965,862 9,155,740 Purchase of ~nvestment securities (173,231,270) (14,176,227) Interest received on ~nvestments 8,061,126 901,800 Net cash provided by (used for) investing activities (42,204,282) (4,118,687) Net ~ncrease (decrease) ~n cash and cash equivalents (11,881,322) (6,971,875) Cash and cash equivalents - October I 12,031,820 6,971,875 Cash and cash equivalents - September 30 $ 150,498 (Continued) The accompanying notes to financial statements are an integral part of th~s statement -16- Comprehensive Annual Financial Report CITY OF DENTON, TEXAS Totals (Memorandum Only) Year Ended September 30, 2000 September 30, 1999 $ 134,292,049 $ 134,441,551 (20,297,962) (20,109,030) (105,903,378) (88,177,050) ..... ........... 26 , {597,032) (542,228) 243,983 50,000 {2,397,865) - 2,397,865 - (728,600) (1,102,000) 726,600 1,102,000 118,169 1,765,548 (234,880) 1,273,420 1,481,220 (1,481,220) 10,315,674 25,000 (5,908,320) (5,847,466) (7,148,098) (1,981,182) 55,130,000 7,750,375 5,768 - (1,738,750) 3,176,514 - (35,957,595) (19,490,189) 82,529 19,613,943 (21,199,683) 132,121,602 101,640,804 (187,407,497) (106,699,227) 8,962,926 8,758,553 (46,322,969) 3,700,130 (18,853,197) 9,929,338 19,003,695 9,074,357 $ .... i,, 150~498 ,,$ ,, 1,9~003~695 -17- Comprehensive Annual F,nancial Report CITY OF DENTON, TEXAS COMBINED STATEMENT OF CASH FLOWS - ALL PROPRIETARY FUND TYPES (Concluded) FOR THE FISCAL YEAR ENDED SEPTEMBER 30 2000 Propnetary Fund Types Enterpnse Internal Serwce Reconclhat~on of Operating Income to Net Cash Provided by Operating Activities Operating income (loss) $ 7,775,246 $ (948,734) Adjustments Deprecmt~on expense 10,393,158 3,103,761 (Gum) on sale of fixed asset (32,590) Closure/Postclosure expense 431,988 - Decrease (Increase) ~n receivables (8,626,433) 26,316 Decrease (Increase) ~n due from other funds (7,723,545) 3,978,481 Decrease (Increase) ~n ~nventor~es (521,168) Decrease (increase) ~n prepaid ~tems 39,407 Increase (Decrease) ~n accounts payable (6,155,761) (3,039,713) Increase (Decrease) ~n accumulated unpaid compensated absences 118,714 108,144 Increase (Decrease) ~n due to other funds 7,667,594 1,528,872 Increase (Decrease) ~n claims payable (33,028) Total adjustments (3,894,285) 5,158,482 Net cash provided by operating activities $ 3,880,961 $ 4,209,748 Supplemental Schedule for Noncash Capital and Related Financing Actlvitiea Noncash act~wty for the year ended September 30, 2000, consisted of contributed capital for the Enterprise Funds and the Internal Service Funds ~n the amount of $10, 312,619 and $90,517, respectively Noncash act~wty for the year ended September 30, 1999, consisted of contnbuted cap;tal for the Enterprise Funds and the Internal Service Funds m the amount of $5,768,170 and $1,970,372, respectively There was no noncash act~wty for capital assets for the year ended September 30, 2000 Noncash transactions of capital assets purchased through capital lease agreements was $753,669 for the year ended September 30, 1999 The accompanying notes to financial atatements are an integral part of this statement -18 Comprehensive Annual Financial Report CITY OF DENTON, TEXAS Totals (Memorandum Only) Year Ended Se@tember 30, 2000 September 30, 1999 6,826,512 915,767,863 13,496,919 10,827,269 (32,590) 431,988 320,701 (8,600,1171 22,703 (3,745,064) (484,625) (521,168) (225,243) 39,407 490 (9,195,474) 869,556 226,858 197,665 9,196,466 (804,774) (33,028) (336,134) 1,264,197 10,387,608 8,090,709 $26,155,471 -19 Comprehensive Annual F,nanc,al Report CITY OF DENTON, TEXAS of - 20 - Comprehensive Annual Financial Report CITY OF DENTON, TEXAS NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The C~ty of Denton ("the C~ty") was ~ncorporated September 26, 1866 The C~ty operates as a Home Rule C~ty, under a Councd Manager form of government and prowdes the following serwces as authonzed by ~ts Charter pubhc safety (pohce and fire), pubhc works, parks and recreation, electric, water and wastewater ut~ht~es, sohd waste, and general administrative services The C~ty is a mumc~pal corporation governed by an elected mayor and s~x-member councd The C~ty receives funding from state and federal government sources and must comply w~th the requirements of these funding source ent~t~es However, the C~ty ~s not ~ncluded ~n any other governmental "reporting entity," as defined ~n pronouncements by the Governmental Accounting Standards Board ("GASB") Statement No 14, "The Reporting Entity," s~nce Council members are elected by the pubhc and have decision-making authority, the authonty to levy taxes, the power to designate management, the abd~ty to slgmflcantly influence operations, and primary accountablhty for fiscal matters The accounting pohc~es of the C~ty conform to generally accepted accounting pnnc~ples as apphcable to governments The Governmental Accounting Standards Board (GASB) ~s the accepted standard-setting body for estabhsh~ng governmental accounting and financial reporting pnnc~ples The following ~s a summary of the more s~gmflcant pohc~es A Reporting Entity The C~ty ~s governed by an elected mayor and s~x-member councd As required by generally accepted accounting pnnmples, these financial statements present the C~ty (the primary government) and ~ts component umts, whmh are ent~t~es for whmh the government ~s considered to be financially accountable Blended component umts, although legally separate entitles, are, m substance, part of the City's operations, and so data from these units are combined w~th data of the pnmary government A d~scretely presented component umt, on the other hand, ~s reported ~n a separate column m the combined flnancml statements to emphasize ~t ~s legally separate from the C~ty The C~ty had no d~scretely presented or blended component umts at September 30, 2000 B Fund Accounting The accounts of the C~ty are maintained on the bas~s of funds or account groups, each of which is considered a separate accounting entity The operations of each fund are summarized by prowdlng a separate set of self-balanc~ng accounts whmh comprise ~ts assets, habd~t~es, fund 21 Notes, C~ty of Denton (continued) September 30, 2000 equity, revenues, expenses, and expenditures The following funds and account groups are used by the C~ty Governmental Fund Types General Fund- The General Fund ~s the principal fund of the C~ty All general tax revenues and other receipts that are not allocated by law or contractual agreement to some other fund are accounted for m th~s fund From the fund are pa~d the general operating costs, the fixed charges, and the capital ~mprovement costs that are not pa~d through other funds Special Revenue Funds- The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or major capital projects) that are legally restricted to expenditures for specified purposes These funds include the grants from the Department of Housing and Urban Development (Community Development Block Grant) and from the Texas Cnm~nal Justice D~ws~on, the Emily Fowler L~brary Fund, the Police Confiscation Fund, the Tourist and Convention Fund, the Recreation Fund, and m~scellaneous other revenues Debt Serwce Fund- The Debt Serwce Fund accounts for the payment of pnnc~pal and interest on general long-term Imbd~t~es, pa~d primarily by taxes lewed by the C~ty, and for the payment of pnnc~pal and ~nterest on capital leases m the governmental fund types Capital Projects Funds- The Capital ProJects Funds account for the acquisition of capital facd~t~es being financed from bond proceeds, contributed capital, or transfers from other funds, other than those recorded m the Enterprme Funds and the Internal Serwce Funds Proprietary Fund Types Enterprise Funds- The Enterprise Funds are used to account for operations that are financed and operated in a manner slmdar to prwate business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of prowdmg goods or services to the general pubhc on a continuing bas~s be financed or recovered pr~mardy through user charges These funds ~nclude the Electric, Water and Wastewater Utd~ty Systems (Utd~ty System), the Sol~d Waste operations, and Budding Inspections Internal Serwce Funds- The Internal Serwce Funds account for the financing of materials and serwces prowded by one department of the C~ty to other departments of the C~ty on a cost-reimbursement bas~s These funds ~nclude the Fleet Serwces Fund (vehicle maintenance), the Materials Management Fund, the Motor Pool Fund, the Commumcat~ons Fund, the R~sk Retention Fund, and the Technology Services Fund - 22 Notes, City of Denton (continued) September 30, 2000 Fiduciary Fund Types Trust and Agency Funds- Trust and Agency Funds are used to account for assets held by the C~ty m a trustee capacity or as an agent for individuals, private orgamzatlons, other governments, and/or other funds These ~nclude the Expendable Trust Fund and Agency Funds The Expendable Trust Fund ~s accounted for ~n essentmlly the same manner as Governmental Fund Types The Expendable Trust Fund ~s comprmed of several trust funds of var~ed purpose Agency Funds are custodial ~n nature (assets equal habd~t~es) and do not ~nvolve measurement of results of operations The Agency Funds ~nclude the Payroll Fund and other mmcellaneous funds General F~xed Assets Account Group The General F~xed Assets Account Group represents a summary of the fixed assets of the C~ty, other than assets of the Propnetar¥ Funds Capital outlays m funds other than Proprietary Fund Type are recorded as expenditures of those funds at the t~me of purchase and subsequently recorded for control purposes ~n the General F~xed Assets Account Group General Long-Term Debt Account Group The General Long-Term Debt Account Group represents a summary of the long-term debt of the C~ty pa~d pnnc~pally by taxes lewed by the C~ty Th~s account group does not include long-term debt accounted for ~n the Proprietary Fund Types C Basis of Accounting The accrual basis-The Propnetary Fund Types are accounted for on a flow of economic resources measurement focus Accordingly, the accrual bas~s, whereby revenues and expenses are identified in the accounting period ~n which they are earned and incurred and net income ~s determined, ~s utd~zed for these funds The C~ty apphes all GASB pronouncements as well as the F~nanc~al Accounting Standards Board pronouncements ~ssued on or before November 30, 1989, unless these pronouncements confhct or contradict GASB pronouncements Modified accrual basis-The Governmental Fund Types are accounted for on a flow of flnancml resources measurement focus Accordingly, the modified accrual bas~s ~s used for these funds and the Agency Funds Modifications ~n the accrual bas~s for these funds ~nclude the following 1 Revenues are recognized when they become both measurable and avadable for use dunng the year Those revenues treated as being susceptible to accrual include taxes, ~nterest, and ~ntergovernmental revenues Property tax revenue ~s recogmzed ~ndependently of receivables ~n the fiscal year for which taxes have been lewed, prowded they become avadable Available means when due, or past due and receivable dunng the current period, collected within the current period or expected to be collected soon enough thereafter to be used to pay Imbd~t~es of the current permd Such t~me thereafter should not exceed 60 days Revenue sources from hcenses, fines and forfeitures, serwce charges and other m~scellaneous revenues are recogmzed as the cash ~s received 2 Expenditures are recogmzed when the related fund habd~ty ~s ~ncurred, except for interest on general long-term debt, which ~s recorded when due - 23 - Notes, C~ty of Denton (continued) September 30, 2000 3 Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the apphcable appropnat~on, ~s employed as an extension of formal budgetary ~ntegrat~on Encumbrances outstanding at year-end are reported as reservations of fund balances s~nce they do not constitute expenditures or habd~t~es D Budgets and Budgetary Accounting The C~ty Councd follows these procedures as prescnbed by C~ty Charter, m estabhshmg the budgets reflected m the financial statements At least s~xty days pnor to the beg~nmng of each fiscal year, the C~ty Manager submits to the C~ty Council a proposed budget for the fiscal year beg~nmng on the following October 1 The operating budget includes proposed expenditures and the means of financing them 2 Pubhc hearings are conducted pnor to the adoption of the budget ~n order to obtain taxpayer comments 3 The annual budget adopted by the C~ty Councd covers the General Fund, Special Revenue Funds (Recreation Fund, Pohce Confiscation Fund, Emdy Fowler L~brary Fund, and Tourmt and Convention Fund only), the Debt Serwce Fund, the Enterprise Funds, and Internal Serwce Funds (except for the R~sk Retention Fund) The budget ~s legally enacted by the C~ty Councd through passage of an ordinance prior to the beginning of the fiscal year The general purpose hnanc~al statements reflect the legal level of control, which ~s at the appropnat~on level by function act~wty w~th~n an md~wdual fund as approved by C~ty Councd 4 The C~ty Charter prowdes that the C~ty Manager has the authority to transfer any unencumbered appropnat~on balances from one appropnat~on to another w~thm a single function (office, department, or agency) C~ty Council approval ~s not required at th~s level The Charter also provides that at any t~me dunng the year, at the request of the C~ty Manager, C~ty Councd may by resolution transfer any part of the unencumbered appropriation balances or the entire balance thereof between functions, as well as make any ~ncreases in fund appropriations Individual amendments were not material in relation to the original appropriations, which were amended All budgets are adopted on a bas~s consistent w~th generally accepted accounting pnnc~ples except that for the Governmental Funds, Proprietary Funds, and the budgeted Special Revenue Funds encumbrances are treated as budgeted expenditures ~n the year of commitment to purchase, and deprecmtmn expense for the Propnetary Funds ~s not budgeted All unexpended appropnatmns at fiscal year end lapse to the appropriate fund balance except for those of the multi-year grants and/or projects Encumbered appropnat~ons are carrmd forward to the succeeding year A reconcd~at~on of fund balance on the budgetary basra to fund balance on the modified accrual bas~s for Governmental Fund Types ~s as follows - 24 - Notes, C~ty of Denton (continued) September 30, 2000 General Special Revenue Fund Funds Fund Balance (Budget Bas~s) $11,963,592 $400,459 Bas~s d~fference and nonbudgeted funds (2,494,780) 105,620 Fund Balance (GAAP Basis) $ 9,468,812 $506,079 E Cash and Investments For the purposes of the "Statement of Cash Flows," the C~ty considers ~nvestments w~th matuntles of under 90 days at acquisition to be cash and cash equwalents Investments are carried at fair value or cost, ~f maturities are one year or less Interest earned on investments is recorded in the funds m which the ~nvestments are recorded F Unbdled Receivables The C~ty accrues amounts for utd~t¥ serwces prowded ~n September, but not bdled at September 30, 2000 G Inventories Inventories are valued at the lower of cost or market Cost ~s determined using a mowng average method No mventorms ex~st m the governmental fund types H Fixed Assets Enterprise and Internal Service Funds- Fixed assets are recorded at cost, including net interest during the construction per~od Contnbuted property ~s recorded at fair market value at the date of contr;but~on Depreciation ~s recorded on each class of deprec~able property utd~zmg the stra~ght-lme method over the estimated useful hves of the assets 25- Notes, C~ty of Denton (continued) September 30, 2000 Estimated useful hves are as follows Useful L~fe F~xed Asset {Years) ENTERPRISE FUNDS- Electric System General assets - Structures 50 - Equipment 5 20 D~stnbut~on assets - Structures 50 - Equipment 20 33 Transmtsston assets - Equipment 20 33 Internal combustion assets - Structures 50 - Equipment 13 20 Steam power assets - Structures 50 - Equipment 20 - 35 Water end Wastewater System Structures 50 Water and wastewater mains 20 - 33 Equipment 10 - 20 Furniture and fixtures Radms 5 Computer equipment 5 Water Storage R~ghts 40 - 100 Sol~d Waste Landfdl Improvements 4 Dumpsters 10 Vehicles and equipment 5 10 INTERNAL SERVICE FUNDS- Vehicles and equipment 3 15 Renewals and betterments of property and equipment are cap~tahzed, whereas normal repairs and maintenance are charged to expense as ~ncurred General Fixed Assets- General fixed assets are recorded as expenditures m the General, Special Revenue, or Capital Projects Funds when acquired Such assets are capitalized at cost ~n the General F~xed Assets Account Group S~gmflcant g~fts or contributions of assets are recorded m the General F~xed Assets Account Group at the fair market value at the date of acquisition Pubhc domain (~nfrastructure) general fixed assets, consisting of streets, curbs, s~dewalks, gutters, and drainage systems, are cap~tahzed along w~th other general fixed assets No depreciation ~s prowded on general fixed assets - 26- Notes, C~ty of Denton (continued) September 30, 2000 I Property Tax Revenue Property taxes attach as an enforceable hen on property as of January 1 Taxes are lewed on October 1 and are due and payable at that t~me All unpaid taxes lev~ed October 1 become dehnquent February 1 of the following year The C~ty records revenue from current property taxes ,n the year ,n which bdls are measurable and avadable An allowance ~s prowded for dehnquent taxes not expected to be collected ~n the future At September 30, 2000, the C~ty had a tax margin of $1 99185 per 8100 valuation based upon a maximum ad valorem tax of $2 50 per $100 valuation ~mposed by Texas Constitutional law Additional revenues up to $54,014,528 could be raised per year based on the current year's assessed value of $2,711,362,015 before the hm,t ~s reached J Compensated Absences The C~ty allows employees to accumulate unused vacation up to forty days Upon termination, any accumulated vacation t,me wdl be pa~d to an employee Generally, s~ck leave ~s not paid upon termination except for firemen and pohcemen F~remen and pohcemen accumulate unused s~ck leave up to a maximum of 90 days All other employees are pa~d only upon dlness whde ~n the employ of the C~ty As of September 30, 2000, the hablhty for accrued vacation leave and accrued s~ck leave ~s $6,383,979 The amounts apphcable to the Enterpnse Funds ($1,024,575) and Internal Serwce Funds ($170,257) have been recorded ~n those funds, and the amount apphcable to other funds ($5,189,147) has been recorded ~n the General Long-Term Llabd~t~es Account Group The amount expected to be pa~d from current avadable financial resources ~s not significant K Comparative Data Comparative totals for the prior year have been presented m the accompanying general purpose financial statements ~n order to prowde an understanding of changes ~n the C~ty's financial poslt~on and operations However, comparative data (presentation of prior-year amounts by fund type) ~n each of the statements have not been included, s~nce their inclusion would make the combined statements unduly complex and d~fflcult to read In certain cases, the amounts prewously reported ~n 1999 have been reclassified in order to conform to the 2000 presentation L "Memorandum Only" Total Columns Total columns on the combined statements are captioned as "memorandum only" to ~ndicate that they are presented only to facd~tate analys~s Data ~n these columns do not present flnancml pos~t~on, results of operations, or cash flows m conformity w~th generally accepted accounting pnnc~ples Th~s presentation does not represent a consohdat~on Interfund ehmmat~ons have not been made ~n the aggregation of th~s data - 27 - Notes, C~ty of Denton (continued) September 30, 2000 (2) CASH AND INVESTMENTS In order to facd~tate effective cash management practices, the operating cash of all funds are pooled ~nto common accounts for the purpose of ~ncreas~ng ~ncome through combined ~nvestment activities At year end, the carrying amount of the C~ty's deposits was $1,707,734, and the bank balance was $2,534,026 Federal depository insurance or the fair value of collateral held by the C~ty's agent ~n the C~ty's name exceed ~n total the C~ty's bank deposits at year-end Statutes authorize the C~ty to revest ~n obhgat~ons of the U S Treasury, U S agencies, fully collaterahzed repurchase agreements, Public Fund Investment Pools, SEC registered no load money market mutual funds, ~nvestment grade rated municipal securities of any state, and fully collateral~zed certificates of deposit The ~nvestments reported at September 30, 2000 were s~mdar to those held dunng the fiscal year At September 30, 2000, the C~ty's ~nvestments (U S Treasury and Agency Securities and Mumc~pal Securities) were insured or registered or the securities were held by the C~ty or its agent in the C~ty's name The C~ty reports all ~nvestments ~n the financial statements at fair value or cost ~f maturities are one year or less At September 30, 2000, the C~ty's ~nvestments (U S Treasury and Agency Securities and Municipal Securities) camed a fair market value of $213,685,367 As of September 30, 2000, the C~ty's investments were as follows Cost Fair Value U S Treasury Securities 8 4,487,152 $ 4,484,318 U S Agency Securities 208,857,938 208,201,049 Money Markets 1,000,000 1,000,000 Total 8214,345,090 8213,685,367 - 28 - Notes, City of Denton (continued) September 30, 2000 (3) FIX~ED ASSETS General F;xed Assets- General fixed assets balances and transactions for the year ended September 30, 2000, are, summarized below Balance Balance October 1, Transfers In/ Transfers Out/ September 30, 1999 Additions Deductions 2000 Land $ 5,454,127 $ $ - $ 5,454,127 Buildings 26,768,996 43,446 - 26,812,442 Streets 77,134,979 334,833 - 77,469,812 Machinery and eqmpment and other ~mprovements 24,413,038 341,010 - 24,754,048 Construction m progress 8,298,738 4,930,059 (384,292) 12,844,505 Total $142,069,878 $5,649,348 $(384,292) $147,334,934 InveStment ~n General F~xed Assets- From bond ~ssues $ 84,581,370 $5,314,351 (384,292) $ 89,511,429 From current revenue 23,427,083 334,997 23,762,080 108,008,453 5,649,348 (384,292) 113,273,509 From contributions 34,061,425 34,061,425 Total $142,089,878 $5,649,348 $(384,292) $t47,334,934 - 29 - Notes, C~ty of Denton (continued) September 30, 2000 General F~xed Assets by function and activity as of September 30, 2000 are summarized as follows Mach/Equip and Other Total Land Buddings Streets Improvements GENERAL GOVERNMENT Parks $ 13149069 $2412800 $ 7821 755 $ 457018 $ 2457495 Legal 244 136 3,202 240 934 Mumc~pal Court 25 108 9,340 15,768 Human Resources 55 239 55,239 C~ty Manager/Economic Der 1,095 931 262 304 777 245 56 382 Facd~ty Management 16 878 337 2 600 585 10 470 946 1 789,625 2,017 181 L~brary 5 170,195 956 085 4,214 110 South Branch L~brary 2 309 876 1,225 601 1,084,275 Planning/CD 120 221 120 221 Inspections 48 461 48,461 Mmn Street 3 823 3 823 Total General Government 39 100 396 5 275 689 21,264 174 2 246,643 10~313 890 PUBLIC WORKS Traffic Engineer,rig 3 904 556 35,703 542 537 3 326,316 Engineering 920,711 - - 47,363 873 348 Code Enforcement 14,907 - - - 14,907 Streets 69 259 960 - 5,000 69,236,720 18,240 Street Sweeping/Drainage 4,179 815 - 2,700 4,127,077 50,038 A~rport 5 553 566 178 438 1 055 415 1 267,159 3,052 554 Enwronmental Health Servrces 8,511 - - - 8 511 Ammal Control 411 552 - 386 802 - 24 750 Total Public Works 84,253,578 178 438 1,485~620 75 220,856 7,368 664 FINANCE Finance Adm~mstrat~on 294,309 24 510 269 799 Customer Serwce 110 020 110 020 Purchasing 4 050 4 050 Internal Audit 10,038 10 038 Budget 1 864 1 864 Treasury 34 852 34,852 Accounting 19 235 19 235 Mumc~pal Court Clerks 48 411 48,411 Tax 2,773 2 773 Reprograph~cs 109 040 109,040 Technology Serwces 1,139 536 324,683 814,853 Total Finance 1,774 128 349,193 1 ~424,935 PUBLIC SAFETY Fire Adm~mstrat~on 662 599 395,424 267,175 F~re Operations 3,204 970 2 823,531 381 439 F~re Prevention 13 932 13 932 Emergency Medical 154 345 154,345 Pohce 5,326,481 494,500 4,831,981 Total Public Safety 9,362 327 3,713 455 5,648,872 Construction ~n Progress 12,844 505 TOTAL $147,334,934 $5,454,127 $26,812,442 $77,467,499 $24,756,361 - 30- Notes, City of Denton (continued) September 30, 2000 Changes ~n general fixed assets by function and act~wty for the fiscal year ended September 30, 2000 are summarized as follows General General F~xed Assets Transfers In/ Transfers Out/ F~xed Assets 10/1/99 Addmons Deductions 9/30/00 GENERAL GOVERNMENT Parks $ 13,073,028 $ 76,041 ~ $ 13,149069 Legal 244,136 - - 244,136 Mummpal Court/Judge 25,108 - - 25,108 Human Resources 55,239 - - 55,239 C~ty Manager/Economic Dev 1,071,272 24,659 - 1,095,931 Facd~ty Management 16,877,334 1,003 - 16,878,337 L~brary 4,931,108 239,087 - 5 170,195 South Branch Library 2,290,620 19,256 - 2 309 876 Planmng/CD 118,847 1,374 - 120,221 Insp1~ct~ons 48,461 - 48 461 Ma~n Street 3,823 - 3,823 Total General Government 38,738,976 361,420 - 39,100,396 PUBLIC IWORKS Traffic Engineering 3,904,556 - 3,904,556 Engineenng 920,711 - 920 711 Code Enforcement 14,907 - 14,907 Streets 68,925,127 334,833 - 69,259,960 Street Sweeping/Drainage 4,179,815 - 4,179, 815 A~rpprt 5,553,566 - 5,553,566 Environmental H salth Services 3,000 5,511 - 8,511 Ammal Control 411,552 - 411 552 ~Total Public Works 83,913,234 340,344 - 84,253 578 FINANCE F;nance Adm:nistrat~on 294,309 - 294,309 Customer Serwce 110,020 - 110,020 Purahssing 4,050 - 4,050 Internal Audit 10,038 - 10,038 Budget 1,864 - 1,864 Treasury 34,852 34,852 Accounting 19,235 19,235 Municipal Court Clerks 48,411 48,411 Tax 875 1,898 2,773 Reprograph~cs 109,040 109,040 Technology Serwces 1,139,279 257 1,139,536 Total Finance 1,771,973 2,155 1,774,128 PUBLIC l SAFETY F~re~Administrat~on 659,696 2,903 662,599 F~re IO perat,ons 3,204,970 3,204, 970 F,reI Prevention 13,932 13,932 Emqrgency Medical 154,345 154,345 Pohce 5,314,014 12,467 5,326,481 Total Public Safety 9,346,957 15,370 9,362,327 Construction ;n Progress 8,298,738 4,930,059 (384,292) 12,844,505 TOTAl. ~)142,069,878 ~5,6~t9,348 ${384,292) $ t47,334,934 -31 Notes, C~ty of Denton (continued) September 30, 2000 Construction ~n progress ~s composed of the following Expended To Prolect September 30, Pro~ect Appropriation 2000 Committed Public Safety $ 967,515 $ 616,645 $ 350 870 Drainage 1,486,942 284,669 1,202,273 General Improvements 4,540,663 1,852,044 2,688,619 Parks and Recreation 6,142, 218 3,108,482 3,033 736 Streets and Sidewalks 14,583,588 6,982,665 7,600,923 Total ~27,720,926 $12,844,505 $14,876,421 Enterprise and Internal Serwce Funds- F~xed assets of these funds are as follows September 30 2000 1999 Utility System Land and land rights $ 2,716,370 $ 2,716,370 Water storage r~ghts 69,883,098 69,883,098 Electric plant and equipment 123,793,368 115,053,226 Water plant and equipment 64 406,888 58,289,165 Wastewater plant and equipment 69,392,156 60,581,579 330,191,880 306,523,438 Less ~ Allowance for depreciation (133,032,747) (125,045,364) 197,159,133 181,478,074 Construction m progress 15,024,677 10,492,158 Total fixed assets Ut~hty System 9212,1.83,810 $191,970,232 Solid Waste Land and land rights $ 6,611,370 $ 4,852,698 Vehicles and equipment 7,257,788 4,380,923 13,869,158 9,233,621 Less Allowance for depreciation (4,838,880) (2,995,332) 9,030,278 6,238,289 Construction ~n progress 3~479,080 Total fixed assets - Sohd Waste ~ 9,030,278 ,,$ 9~717,369 Building Inspections Land and land rights $ $ _ Vehicles and eqmpment 42,266 32 061 42,266 32,061 Less - Allowance for depreciation (34~368) (31 ~043) 7,898 1,018 Construction ~n progress _ Total fixed assets - Budding Inspections $ 7f898 ~ 1,018 Internal Service Land and land rights $ 183,805 $ 183,805 Vehicles and other assets 29,123,351 25,330,353 29,307,156 25,514,158 Less Allowance for depreciation (17,985,672) (15,429,234) 11,321,484 10,084,924 Construction ~n progress 3,818~152 2~036,886 Total fixed asseta - Internal Service , ,, $, 15 139~636 .... ,, ~, 12, i21,810 ,, , -32- Notes, City of Denton (continued) September 30, 2000 (4) LONG-TERM LIABILITIES Long-term habd~t~es transactions for the year ended September30, 2000, are summarized as follows Balance at Balance at Retired and September 30, October 1, 1999 Issued Transferred 2000 General Long- Term L~ab#rties General Obhgat~onbonds $ 37,244,219 $ 3,750,000 $ 2,615,194 $ 38,379,025 Certificates of Obligation 5,445,387 5,540,906 986,245 10,000,048 Obhgations under cap~tal leases 1,476,755 725,974 750,781 Accumulated unpaid compensated absences 5,094,018 2,108,303 2,013,174 5,189,147 Total general long-term I~abilities 49,260,379 11,399,209 6,340,587 54,319,001 Proprietary Fund Types Utd~ty,System revenue bonds 117,945,000 54,880,000 4,620,000 168,205,000 Net unamortized premium/discount (437,818) (72,561 ) (510,379) General Obligation Bonds Pledged by Solid Waste revenues 1,770,796 80,226 1,690,570 Other 41,715 5,387 36,328 Certificates of Obhgat~on 14,499,613 250,000 3,868,661 10,880,952 Obhgations under capital leases 309,829 - 240,802 69,027 Accumulated unpaid compensated absences 1,035,853 1,149,018 990,039 1,194,832 Note I~ayeble 3,135,454 5,768 3,141,222 ClaimS payable 506,488 - 33,028 473,460 Landfill closure/postclosure costs 2,039,447 431,988 - 2,471,435 Totalproprietaryfundtypee 140,846,377 56,644,213 9,838,143 187,652,447 Totallong-term liabilities , ,$190,t06,756 $68,043,422 $16,178,730 $241,971,448 In fiscal 2000, $2 7 mdhon of certificates of obhgat~on were transferred from the Technology Serwces Fund to the General Long-Term Debt Account Group - 33 - Notes, C~ty of Denton (continued) September 30, 2000 General 8onded Debt- General bonded debt at September 30, 2000, ~s comprised of the following Amount Outstanding at Interest Rate F~nal Original Amount September 30, Bonded Debt (%) Issue Date Maturity of Issue 2000 General Obligation Refunding 7 70 to 8 00 1985 2004 $ 5,171,730 ~ 985,923 General Obligation 5 55 to 8 50 1992 2OO1 2,630,000 115,000 General Obligation 4 65 to 7 50 1993 2005 2,975,000 750,000 General Obligation Refunding 3 O0 to 5 40 1993 2009 13,315,OOO 4,485,000 General Obhgat~on Refunding 5 75 to 8 50 1995 2015 1,61 O,OOO 750,000 General Obligation 5 40 to 7 40 1996 2012 2,515,000 1,480,000 General Obligation 5 O0 to 7 O0 1997 2017 4,700,000 4,395,000 General Obhgat~on 5 25 to 5 25 1998 2018 9,660,000 8,690,000 General Obligation 4 10 to 5 O0 1999 2019 8,215,000 7,800,000 General Obligation Refunding 3 20 to 5 O0 1999 2016 7,020,000 6,905,000 General Obligation 5 25 to 6 125 2000 2020 3,750,000 3,750,000 Total General Obligation Bonds 61,561,730 40,105,923 Certificates of Obligation 4 20 to 5 30 1993 2003 1,450,000 240,000 Certificates of Obligation 4 40 to 7 40 1993 2014 2,705,000 1,805,000 Certificates of Obhgat~on 4 30 to 7 30 1994 2005 3,220,000 1,100,000 Certificates of Obligation 5 25 to 8 25 1995 2015 2,000,000 1,755,000 Certificates of Obligation 5 O0 to 7 O0 1996 2010 5,190,000 2,040,000 Certificates of Obhgat~on 4 O0 to 5 O0 1998 2018 5,625,000 4,380,000 Certificates of Obligation 4 10 to 5 O0 1999 2019 6,935,000 6,436,000 Certificates of Obhgat~on 5 25 to 6 125 2000 2020 3,125,000 3,125,000 Total Other General Bonded Debt 30,250,000 20,881,000 Total General Bonded Debt ~91,81 t,730 ~60,986,923 Proceeds of general bonded debt are restncted to the uses for which they were approved m the bond elect~ons The C~ty Charter expressly prohibits the use of bond proceeds to fund operating expenses The general obhgat~ons are collaterallzed by the full faith and credit of the City and, pnmanly, payable from property taxes In pnor years, the C~ty defeased general obligation bonds by placing the proceeds of new bonds ~n an ~rrevocable trust to prowde for all future debt serwce payments on the old bonds Accordingly, the trust account assets and habd~t~es for the defeased bonds are not ~ncluded ~n the C~ty's financial statements On September 30, 2000, $97,108,861 of General Obhgat~on bonds considered defeased are stdl outstanding In 2000, the government ~ssued $3,750,000 of general obhgat~on bonds and $3,125,000 ~n certificates of obligation The debt was ~ssued to pay the cost of vanous capital ~mprovement projects The bonds and obhgat~ons are payable over the next 20 years - 34- Notes, City of Denton (continued) September 30, 2000 Revenue 80nd$- Revenue bond debt at September 30, 2000, is compnsed of the following issues Amount Net Original Outstanding at Unamortized Outstanding at Interest Rate Issue F~nal Amount September 30, Premium September 30, Revenue Bonds (%) Date Maturity of Issue 2000 (D~scount) 2000 Utd~tySystem 580to8 75 1992 2006 $ 45OOOO0 $ 1,11OOOO $ $ 1,110,OOO Utility System 5 00 to 7 50 1993 2014 6,575,000 4,620,000 4,620,000 Utility System Refunding 2 50 to 5 40 1993 2010 27,085,000 19,590 000 (170,010) 19,419 990 Utd~ty System Refunding 3 55 to 6 75 1993 2008 6,045,000 1,595,000 (5,300) 1 589,700 Utd~ty System Refunding 5 30 to 7 80 1996 2025 36 510,000 33,120,000 (154,875) 32,965 125 Utd~ty System 5 30 to 7 40 1996 2017 2,750,000 2,510,000 - 2,510 000 Utd~ty System 4 30 to 6 30 1998 2018 7,175 000 6,455,000 - 6,455,000 Utd~ty System Refunding 4 65 to 6 65 1998 2030 36,795,000 36,795,000 (516,086) 36,278,914 Utd~ty System Refunding 4 00 to 5 O0 1998 2015 7,640,000 7,530,000 (172 321) 7,357,679 Utd~ty System 4 974 to 6 O0 2000 2019 54,880,000 54,880,000 62,745 54,942,745 Total RevenuelBonds $189,955,000 e168,205,000 e(955,847) $167,249,153 The C~ty has the option to retire at par all or a port~on of the bonds prior to maturity on or after December 1, 1993 The revenue bonds are collateral~zed by the revenue of the Utd~ty System and the various specml funds established by the bond ordinance The ordinance prowdes that the revenue of the System ~s to be used first to pay operating and maintenance expenses of the System and second to establish and maintain the revenue bond funds Any remaining revenues may then be used for any lawful purpose The ordinance also contains prows~ons which, among other ~tems, restrict the ~ssuance of additional revenue bonds unless the special funds noted above contain the required amounts and certain financial ratios are met The C~ty ~s in compliance with all significant requirements Below is a summary of the various restricted asset accounts required by the bond ordinance as of September 30, 2000 Interest and S~nk~ng Fund $10,642,425 Reserve Fund 12,769,557 Emergency Fund 245,757 Extension and improvement Fund 4,718,486 ,928,376,225 In 2000, the government ~ssued $54,880,000 ~n utd~ty revenue bonds The debt was ~ssued to pay the cost of various utd~ty ~mprovements The bonds are payable over the next 20 years -35- Notes, C~ty of Denton (continued) September 30, 2000 Assets m these accounts consist of cash and U S government securities Related hab~ht~es and retained earnings are as follows Payable from restncted assets- Accrued ~nterest $ 3,397,152 Revenue bonds payable, current 6,793,354 Retained earmngs reserved for bond retirement 28,791,042 938,981,548 In addition, the C~ty has estabhshed a reserve fund to pay for General Obhgat~on bonds pledged by Sohd Waste revenues of $293,000 In prior years, the C~ty defeased revenue bonds by placing the proceeds of new bonds m an ~rrevocable trust to prowde for all future debt serwce payments on the old bonds Accordingly, the trust account assets and habd~t~es for the defeased bonds are not included ~n the C~ty's financial statements On September 30, 2000, $299,467,048 of revenue bonds considered defeased are stdl outstanding Note Payable- In 1980 the C~ty and the C~ty of Dallas contracted w~th the Corp of Engineers for the construction and development of Ray Roberts Reservoir ~n Denton County In contracts w~th the Corp of Engineers, the C~ty wdl pay for twenty-s~x (26%) percent of the estimated water storage rights of the reservoir Water obtained from the Reservoir wdl be pro rata on the bas~s of each c~ty's proportional share of total construction cost The closing of the dam was completed m 1987 w~th water being avadable from the Reservoir m 1989 The C~ty's estimated total cost of water storage rights at September 30, 2000, was $60,320,970 Aggregate matuntms of the long-term debt (pnnc~pal and interest) for the years subsequent to September 30, 2000, are as follows Bonds General F~scal Year Obh~at~ons Revenue Notes Payable Capital Leases Total 2001 $ 9,144,960 $ 15 282,201 $3,141,222 $837,160 $ 28,405 543 2002 8,428,400 14 865,550 - 8,669 23 302,619 2003 8,147,081 14,641,221 - 22,788,302 2004 7,143 136 14,385 521 - 21,528,657 2005 5,899 327 14,157 001 - 20,056,328 2006 2010 23,545,959 69,120,476 - 92,666,435 2011 2015 17,928,619 56,579,403 - 74,508,022 2016-2020 8,195 591 49,366,755 - 57,562,346 2021 2025 26,472,353 - 26,472,353 2026 2030 13,731,297 - 13,731,297 Total pnnc~pal and ~nterest 88,433 073 288,601 778 3,141,222 845,829 381,021,902 Less apphcable ~nterest (27 446 150) (120,396 778) (26,021) (147,868,949) Total pnnc~pal ~ 60,986,923 $168,205,000 $3,141,222 $819,808 $ 233,1152,953 - 36 - Notes, C~ty of Denton (continued) September 30, 2000 Bonds Authorized and Unissued- General obhgat~on bonds authonzed but umssued as of September 30, 2000, amounted to $3,520,000 When ~ssued, the proceeds wdl be allocated to the apphcable Capital Projects Funds (5) LEASES Leases payable represent the remaining pnnc~pal amounts payable under lease purchase agreements for the acquisition of copier equipment, computer hardware, and other office equipment These leases are recorded as capital leases Rema~mng requirements, includ~ng ~nterest, under these leases are as follows General Long- Term Debt Propnetary Year Account Group Fund Types Total 2001 $774,233 $62,927 $837,160 2002 1,032 7,637 8,669 Total principal and ~nterest 775,265 70,564 845,829 Less - Apphcable ~nterest (24,484) (1,537) (26,021) Total pnnc~pal $750,781 $69,027 $819,808 (6) PENSION PLANS Texas Municipal Retirement Plan Plan Description- The c~ty prowdes pension benefits for all of ~ts full-t~me employees (except flreflghters) through a nontrad~t~onal, lo~nt contributory, hybr;d defined benefit plan ~n the state-w;de Texas Mummpal Retirement System (TMRS), one of over 731 adm~mstered by TMRS, an agent multiple-employer pubhc employee retirement system Benefits depend upon the sum of the employee's contnbut~ons to the plan, w~th ~nterest, and the c~ty-flnanced monetary credits, w~th ~nterest At the date the plan began, the C~ty granted monetary credits for serv;ce rendered before the plan began of a theoretical amount equal to two t~mes what would have been contributed by the employee, w~th ~nterest, pnor to estabhshment of the plan Monetary credits for serwce s~nce the plan began are a percent (200%) of the employee's accumulated contnbut~ons In addition, the C~ty can grant, as often as annually, another type of monetary credit referred to as an updated service credit which is a theoretical amount which, when added to the employee's accumulated contr;but~ons and the monetary credits for service since the plan began, would be the total monetary credits and employee contributions accumulated w~th interest ~f the current employee contribution rate and c~ty matching percent had always been ~n ex~stence and ~f the employee's salary had always been the average of h~s salary ~n the last three years that are one year before the effective date At retirement, the benefit ~s calculated as ~f the sum of the employee's accumulated contributions w~th interest and the employer-financed monetary credits w~th ~nterest were used to purchase an annuity ~ 37 - Notes, C~ty of Denton (continued) September 30, 2000 Members can retire at ages 60 and above w~th ten or more years of serwce or w~th twenty years of serwce regardless of age A member ~s vested after ten years The plan prowslons are adopted by the governing body of the C~ty, w~th~n the options avadable m the state statutes govermng TMRS and w~thm the actuarial constraints also ~n the statutes Contributions- The contnbut~on rate for the employees ~s 7%, and the C~ty matching ratio ~s currently 2 to 1, both as adopted by the governing body of the C~ty In addition, the C~ty reimburses employees for 5% of the 7% employee contribution Under the state law governing TMRS, the c~ty contnbut~on rate ~s annually determined by the actuary Th~s rate consists of the normal cost contribution rate and the prior servme contribution rate, both of which are calculated to be a level percent of payroll from year to year The normal cost contribution rate finances the currently accruing monetary credits due to the C~ty matching percent, which are the obhgat~on of the C~ty as of an employee's retirement date, not at the t~me the employee's contnbut~ons are made The normal cost contrrbut~on rate ~s the actuar~ally determined percent of payroll necessary to satmfy the obhgat~on of the C~ty to each employee at the t~me h~s retirement becomes effectwe The pnor service contnbut~on rate amortizes the unfunded actuanal habd~ty over the remainder of the plan's 25-year open amortization per~od The umt credit actuarial cost method ~s used for determining the C~ty contribution rate Contnbut~ons are made monthly by both the employees and the C~ty S~nce the C~ty needs to know ~ts contribution rate ~n advance for budgeting purposes, there ~s a one-year delay between the actuarml valuation that ~s the basra for the rate and the calendar year when the rate goes into effect Schedule of Actuarial Lmbd~t,es and Funding Progress Actuarial Valuation Date 12/31/99 12/31/98 Actuarial Value of Assets $58,922,637 $51,661,471 Actuarial Accrued L~ab~l~ty 76,575,316 64,855 281 Percentage Funded 76 9% 79 7% Unfunded (Over funded) Actuarial Accrued L~abd~ty (UAALI 17,652,679 13,193,810 Annual Covered Payroll 33,789,696 30,568,492 UAAL as a Percentage of Covered Payroll 52 2% 43 2% Net Pension Obligation (NPO) at the Beg~nmng of Period 0 0 Annual Pens;on Cost Annual reqmred contribution (ARC) $4,004,611 $3,133,781 Interest on NPO 0 0 Adjustment to the ARC 0 4,O04,611 0 3,133,781 Contributions Made 4,O04,611 3,133 781 Increase ~n NPO 0 0 NPO at the end of the per~od $ 0 $ 0 38- Notes, C~ty of Denton (continued) September 30, 2000 Actuarial Assumptions 12/31/99 12/31/99 Actuarial Cost Method - Umt Credit Umt Credit Amortization Method - Level Percent of Payroll Level Percent of Payroll Rema~mng Amortization Period - 25 Years - Open Period 25 Years - Open Period Asset Valuation Method - Amortized Cost Market Related Inyestment Rate of Return - 8% 8% P~ojected Salary Increases - None None Includes Inflation At - None None Cost-of-L~wng Adjustments - None None The C~ty of Denton ~s one of 731 mumc~paht~es hawng the benefit plan administered by TMRS Each of the 731 mumc~paht~es has an annual, md~wdual actuarial valuation performed All assumptions for the December 31, 1999, valuations are contained ~n the 1999 TMRS Comprehensive Annual Financial Report, a copy of which may be obtained by writing to P O Box 149153, Austin, Texas 78714-9153 Fireman's Relief and Retirement Plan The C~ty prowdes pension benefits for all C~wl Serwce employees of the F~re Department through a defined contribution plan The Board of Trustees of the Denton F~reman's Rehef and Retirement Fund (the Plan) ~s the administrator The Plan ~s not considered a part of the C~ty of Denton entity In a defined contribution plan, benefits depend solely on amounts contributed to the Plan plus ~nvestment earmngs F~re employees are required to become a member as a condition of employment The benefit provisions of the Plan are authorized by the Texas Local F~reflghter's Retirement Act (TLFFRA) TLFFRA prowdes the authority and procedure to amend benefit prows~ons Under the Plan, an employee becomes fully vested after ten years of credited serwce The Plan prowdes serwce retirement, death, d~sabd~ty, and w~thdrawal benefits Em'ployees may retire at age 50 w~th twenty years of serwce The Plan prowdes a monthly normal serwce retirement benefit, payable ~n a Joint and Two-th~rds to Spouse form of annuity, equal to 2 24% of h~ghest 36-month average salary for each whole year of serwce C~ty contributions for, and interest forfeited by, employees who leave employment before vesting are red~stnbuted to plan participants For the Plan m effect through December31, 1999, the funding pohcy required contributions equal to 10% of pay by the flreflghters and 9% of pay by the C~ty of Denton Effective January 1, 2000, the funding pohcy of the plan requires contributions equal to 10% of pay by the flreflghters and 10% of pay by the C~ty of Denton Both the C~ty and employees made the required contnbut~ons of $643,688 and $659,911, respectively (7) DEFERRED COMPENSATION PLAN The C~ty offers ~ts employees a deferred compensation plan created ~n accordance w~th Internal Revenue Code Section 457 The plan, avadable to all permanent C~ty employees, -39- Notes, C~ty of Denton (continued) September 30, 2000 permits them to defer, untd future years, up to 25% of annual gross earmngs not to exceed $8,000 The deferred compensation ~s not avadable to employees until termination, retirement, death, or unforeseeable emergency All amounts of compensation deferred under the plan, all property and rights purchased w~th those amounts, and all ~ncome attributable to those amounts, property or rights are, untd pa~d or made avadable to the employee or other benefmmry, solely the property and rights of the employees Accordingly, the assets and associated I~abd~ty of the plan are not included m the C~ty's financial statements It ~s the op~mon of the C~ty's legal counsel that the C~ty has no Imbd~ty for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor (8) SELF-INSURANCE PLAN The C~ty has estabhshed a self4nsurance plan for workers' compensation benefits and general habihty Accrued claims payable ~nclude prows~ons for claims reported and claims ~ncurred but not reported The prows~on for reported claims ~s determined by estimating the amount which wdl ultimately be pa~d each claimant The prows~on for claims ~ncurred but not yet reported is estimated based on the C~ty's experience The costs associated w~th the self-insurance plan are reported as mterfund transactions Accordingly, they are treated as operating revenues of the Internal Serwce R~sk Retention Fund and operating expenditures (expenses) of the other funds Workers' Compensation end General Llablhty Insurance It ~s the pohcy of the C~ty of Denton not to purchase commercial insurance for Workers' Compensation claims Commercml habd~ty ~nsurance coverage ~s purchased for pubhc officials, a~rport, emergency medical serwces, and after-school action site programs at Denla and Martin Luther K~ng, Jr Recreation Centers The C~ty reports I;ab~ht~es when ~t ~s probable that a loss has occurred, and the amount of that loss can be reasonably estimated L~abd~t~es include an amount for claims that have been incurred but not reported Because actual claims habll;t~es depend on such complex factors as inflation, changes ~n legal doctnnes, and damage awards, the process used ;n computing claims hab~hty does not necessanly result ~n an exact amount Claims habd~t~es are re-evaluated penod~cally to take ~nto consideration settlement of claims, new claims, and other factors As of September 30, 2000, the estimated value of these habd;t~es was $473,460 Changes ~n balances of claims I;abd~t~es dunng fiscal year 2000 were as follows 40- Notes, City of Denton (continued) September 30, 2000 Claims L~abd~ty Claims and Claims L~abd~ty Beg~nmng of Change m Claims End of F~scal Year Estimates Payments F~scal Year Workers' Compensation 2000 $270,387 $ 465,357 $391,253 $344,491 1999 206,522 292,962 229,097 270,387 General Liability 2000 $225,001 $ 43,837 $150,969 $117,869 1999 625,000 (263,713) 136,286 225,OO1 Employee Insurance 2000 $ 11,100 - - $ 11,100 1999 11,100 - - 11,100 On September 30, 2000, the C~ty of Denton held $4,838,699 m the R~sk Retention Fund for' payment of claims The C~ty d~d not record $55,000 ~n potential losses which were considered reasonably possible and may result m losses being recorded ~n future penods There were no s~gnlflcant reductions In insurance coverage from coverage ~n the prior year and the amount of settlements did not exceed ~nsurance coverage ~n the current year or ~n any of the past three fiscal years (9) COMMITMENTS AND CONTINGENCIES Agreement with TMPA- In 1976, the C~ty, along w~th the c~t~es of Bryan, Greenwlle, and Garland, Texas (the "C~t~es"} entered into a Power Sales Contract w~th the Texas Munm~pal Power Agency (TMPA) TMPA was created through concurrent ordinances of the C~t~es and ~s governed by a Board of D~rectors consisting of e~ght members, two appointed by the governing body of each c~ty Under the terms of the agreement, TMPA agreed to construct or acquire electric generat;ng plal3ts to supply energy and power to the C~t~es for a period of not less than 35 years The C~ties m turn agreed to purchase all future power and energy reqmrements m excess of the amounts generated by their systems from TMPA at prices intended to cover operating costs and retirement of debt In the event that revenues are msuffm~ent to cover all costs and retire the outstanding debt, each of the C~t~es has guaranteed a porbon of the unpaid debt based, generally, upon ~ts pro rata share of the energy delivered to consumers ;n the pnor operating year As of September 30, 2000, total TMPA long-term debt outstanding was approx;mately $1,308,267,000 and the C~ty's percentage ~s approximately 21% In the opinion of management, the poss~bd~ty of a material payment ~n the near future under th~s guarantee ~s remote ~n that TMPA ~s generating operating profits and assets exceed habd~t~es TMPA operates a 452 megawatt hgmte-fueled generating plant In 1996, TMPA switched to an external source of hgmte to reduce costs Should TMPA be d~ssolved, each C~ty would be entitled to an und~wded interest m the property -41 - Notes, C~ty of Denton (continued) September 30, 2000 Selected financial statement ~nformat~on of TMPA ~s as follows September 30, (Unaudited) 2000 1999 (000s) (000s) Operating Revenues $ 180,729 $ 177,676 Operating Expenses 82,676 91,349 Operating Income 98,053 86,327 Other Nonoperat~ng (Uses) (84,115) (83,135) Current Assets 50,954 55,718 Total Assets 1,426,033 1,449,752 Long-Term Debt 1,308,267 1,331,593 Total L~abd~t~es 1,397,955 1,416,762 Total Equity 28,078 32,990 Agreement with the City of Dallas- Dunng 1985, the C~ty entered ~nto an agreement w~th the C~ty of Dallas which prowdes for the purchase of a m~mmum of 500,000 gallons/day of untreated water from the C~ty of Dallas from Lake Lew~swlle Th~s contract w~ll be effective for 30 years Litlgat~on- Various claims and lawsuits are pending against the City In the op~mon of C~ty management and legal counsel, the potential losses after insurance coverage on all claims will not have a material effect on the C~ty's financial pos~t~on as of September 30, 2000 - 42 - Notes, C,~ty of Denton (continued) September 30, 2000 (10) SEGMENT INFORMATION FOR ENTERPRISE FUNDS Segment ~nformat~on for the year ended September 30, 2000, was as follows Building Utility Sol~d Waste Inspections System Fund Fund Total Operating Revenues $115,485,690 $ 8,986,388 $1,315,581 $125,787,659 Depreciation 8,539,836 1 849,398 3,924 10,393,158 Operating Income 8,143,283 (675,766) 307,729 7,775,246 Operating Transfers In 85,000 - - 85,000 Operating Transfers Out 12,372 - - 12,372 Net Income 8,881,026 (195,484) 329,914 9,015,456 Current Capital Contributions In a~d of construction 10,312,619 - - 10,312,619 Accounts Receivable Accounts receivable, gross 23,127,761 1,524,232 - 24,651,993 Allowance for uncollect~bles 8,449,787 - - 8,449,787 Accounts receivable, net, unrestricted 7,180,072 1,172,492 - 8,352,564 Accounts recewable, net, restricted 7,497,902 351,740 - 7,849,642 Property, Plant and Equipment, net change 23,668,442 4,635,537 10,205 28,314,184 Total Assets 414,245,458 20,232,994 722,959 435,201,411 Net Working Capital 2,271,802 809,759 669,122 3,750,683 Bonds Payable 167,249,153 7,356,069 - 174,605,222 Notes Payable 3,141,222 - - 3,141,222 Total Eqmty 217,317,994 6,695,612 677,020 224,690,626 - 43 ~ Notes, C~ty of Denton (continued) September 30, 2000 (1 1 ) INDIVIDUAL FUND DISCLOSURES Ind~wdual fund d~sclosures as of and for the year ended September 30, 2000, are as follows Interfund Receivables and Payables Interfund Interfund Advances to Advances from Fund Receivables Payables Other Funds Other Funds General Fund $ 6,164,296 $ 151,323 $ $ - Special Revenue Funds Commumty Development Block Grant 6,244 262,062 - Recreation 138,976 450 - Criminal Justice 303,984 229,405 Pohce Confiscation 19,276 Tourist and Convention 234,065 116,800 Emdy Fowler L~brary 631 605 Other 404 246,994 Debt Serwce 274,148 112,642 - Capital Project Funds General Projects 8,674 928,972 - Street Improvement 6,135 322,971 - Construction Projects 117,134 668,824 - Other Capital Projects 63,593 - Enterpnse Funds _ Utility System 9,087,432 10,122,723 2,551,049 Sol~d Waste 3,009 156,211 - 2,551,049 Budding Inspections 613 - - Internal Serwce Funds Warehouse - 2,923,375 - - Fleet Serwces - 182,586 - - Motor Pool 82,341 - - - R~sk Retention 30,069 - - - Commumcatlons - _ Technology Services - _ _ Trust and Agency Funds Expendable Trust 6,464 4,364 - Agency - Payroll 10,005 - - Total ~16,493,900 ~1§,493,900 $2,551,049 $2,551,049 The Tourist and Convention Fund recorded excess expenditures over appropriations of $22,051 - 44 - Notes, C~ty of Denton (continued) September 30, 2000 (12) CONTRIBUTED CAPITAL Dunng fiscal year 2000, contributed capttal changed by the following amounts Enterprise Internal Serwce Funds Funds (1) Beg~nmng balance - October 1 ~ 18,195,027 $1,935,459 Transfer of debt to General Long Term Debt Account Group - 2,756,425 Contributions from customers 627,281 - Contributions from developers 9,685,338 - Depremat~on (2,730,919) (1,264,288) $25,776,727 93,427,596 (13) LANDFILL CLOSURE AND POSTCLOSURE CARE COST State and federal laws and regulations require the C;ty to place a final cover on ,ts Mayhdl Road landfill s~te upon closure and to perform certain maintenance and momtormg functions at the s~te for thirty years after closure Although closure and postclosure care costs wdl be pa~d only upon anticipated closure, the C~ty reports a port~on of these costs as an operating expense m each period based on landfill capacity used as of each balance sheet date The $2,471,435 reported as landfill closure and postclosure care habd~ty at September 30, 2000, represents the cumulative amount recurred to date based on the use of 94 72% of the estimated capacity of the landfill open cells ex~st~ng September 30, 2000 These amounts are based on what ~t would cost to perform all closure and postclosure care m 2000 Actual cost may fluctuate due to inflation, changes m technology, or changes ~n regulations The Sohd Waste fund has prowded for a reserve of cash of $1,501,772 at September 30, 2000 and antm~pates increasing the reserve m future periods as the closure and postclosure actlwtles are carried out (14) PRIOR PERIOD ADJUSTMENT The prior penod adjustment represents a correct~on of an error ~n the 1998-1999 flnanmal statements for an accrual not recorded for expenses ~ncurred ~n 1998-1999 and pa~d ~n 1999- 2000 - 45 - Schedule of TMRS Funding Progress and Contrlbut~ons Last Seven F;scal Years- Unfunded Actuanal Actuanal Actuanal Actuanal Accrued Accrued Valuation Value of Lmbd~ty (AAL) Liab~l~ty F~scal Year Date Assets Entry A~le (UAAL) Funded Percent 1994 12/31/93 $28,858,450 $37 299 424 $ (8,440 974) 77 40% 1995 12/31/94 32,534,014 42 764,413 (10,230,399) 76 08% 1996 12/31/95 37,689,286 49,160 519 (11,471,233) 76 67% 1997 12/31/96 42,912,363 55,594,331 (12,681,968) 77 19% 1998 12/31/97 50 098,775 65,058 438 (14 959 663) 77 00% 1999 12/31/98 51,661,471 64,855 281 (13,193,810) 79 70% 2000 12/31/99 58,922 637 76 575,316 (17,652 679) 76 95% UAAL as Percent of Covered Annual Required Actual Percent F~scal Year Covered Payroll Payroll Cont.but~ons Contributions Contributed 1994 $23,501,218 35 90% $1,611,637 $1,611 637 100 00% 1995 23,820,706 42 90% 1,902,083 1 902,083 100 00% 1996 26,353,340 43 50% 2 417,415 2,417 415 100 00% 1997 26,432,624 48 00% 2,650 758 2,650,758 100 00% 1998 25,835,654 57 90% 2,951,451 2,951,451 100 00% 1999 30,568,492 43 20% 3,133,781 3,133,781 100 00% 2000 33 789,696 52 20% 4 004 611 4,004,611 100 00% - 47 - of - 48 - Combining and Individual Fund Financial Statements CITY OF DENTON, TEXAS SUMMARY OF SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Community Development Block Grant (CDBG) - to account for the operations of projects ut~hz~ng Community Development Block Grant Funds Such revenues are restncted to expenditures for specified projects by the Department of Housing and Urban Development Recreation - to account for the revenues and expenditures for the recreation programs which are self- supporting All expenditures w~ll be reimbursed 100% Vanous bus~ness operations, such as concessions, fall irtto this account Criminal Justice - to account for revenue received from the State of Texas Cnm~nal Justice D~ws~on and other grants administrated by the Pohce Department Police Confiscation- to account for revenues received from confiscated goods Expenditures are restncted to enhancing law enforcement Tourist and Convention- to account for taxes received from hotel and motel occupancy for the purpose of promoting tounsm Emily Fowler Library - to account for fines, donations, memorials and g~fts to the hbrary that are restncted to the Pubhc L~brary All Other - to account for m~scellaneous special revenue sources which are required to finance specific act~wt~es - 49 - Comprehensive Annual Financml Report CITY OF DENTON, TEXAS COMBINING BALANCE SHEET - ALL SPECIAL REVENUE FUNDS SEPTEMBER 30, 2000 Commumty Development C.m~nal ASSETS Block Grant Recreation Justice Cash and deposits $ $ $ Investments 12,204 Receivables (net of allowances for uncollect~bles) - Accrued interest - 4,254 - Other 3,198 9,368 28,490 Due from other funds 6,244 138,976 303,984 Due from other governments 482,322 34,426 76,975 Total Assets $491,764 $199,228 $409,449 LIABILITIES AND FUND BALANCE Liabilities Accounts payable and accrued habd~t~es $ 19,425 $ 19,906 $ 36,989 Due to other funds 262,062 450 229,405 Other I~ab.ht~es 23,684 Deferred raven ues 184,187 111,780 Total Liabilities 489,358 20,356 378,174 Fund Balance Reserved for encumbrances 2,406 83, 716 719 Unreserved 95,156 30,556 Total Fund Balance 2,406 178,872 31,275 Total Liabilities and Fund Balance ~491,764 9t99,228 ~409,449 - 50- Comprehensive Annual Financial Report CITY OF DENTON, TEXAS Totals Tourist Pohce and Emily Fowler All Confiscation Convenbon L~brar¥ Other September 30, 2000 September 30, 1999 - $ $56,881 $ - $ 56,881 $ 970,762 - 162,421 - 174,625 306,035 - 2,625 1,388 8,267 4,226 3,891 40,301 1,709 - 86,957 183,392 9,276 234,065 631 404 703,580 160,234 - - 20,807 523,375 1,137,905 2,042,390 $23,~I87 $a~39.412 ~80,028 ~525.167 $2.168,215 $3,667.039 $ 324 $183,082 $ 2,465 $ 70,370 $ 332,561 $2,336,480 - 116,800 605 246,994 856,316 135,290 - 20,301 - 43.985 75,310 - - 133,307 429,274 209,616 324 320,183 3,070 450,671 1,662,136 2,756,696 1,742 38,359 8,335 74,496 209,773 722,824 21,101 80,870 68,623 - 296,306 187,519 22,843 119,229 76,958 74,496 506,079 910,343 $23~7 ~39~,~12 $80.028 .525.167 $2,t68,215 , ,$3~66~,039 -51 - Comprehensive Annual Flnanc,al Report CITY OF DENTON, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL SPECIAL REVENUE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Commumty Development Criminal Block Grant Recreation Justice REVENUES Tax revenue $ $ _ $ _ Fees for serwce - 1,090,493 - Investment revenue 498 11,804 - Intergovernmental 1,683,729 63,418 1,237,164 M~scellaneous 255,016 1,958 1,429 Total Revenues 1,939,243 1,167,673 1,238,593 EXPENDITURES Current - General government 1,947,171 - Pubhc safety - 1,151,476 Pubhc works _ Parks and recreation - 973,547 - Capital outlay - 65,522 55,842 Total Expenditures 1,947,171 1,039,069 1,207,318 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (7,928) 128,604 31,275 OTHER FINANCING (USES) Operating transfers (out) {128,566) Total Other Financing (Uses) (128,566) EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER USES (7,928) 38 31,275 FUND BALANCES - October 1 10,334 178,834 FUND BALANCES - September 30 $ 2,406 ~ !78 872 ,, ~,, ,,,3,!,275, - 52 - Comprehens,ve Annual Financial Report CITY OF DENTON, TEXAS Totals Year Ended Tounst Pohce and Emily Fowler All Confiscation Convention L~brar¥ Other September 30, 2000 September 30, 1999 $ 838,152 $ - $ $ 838,152 $ 758,272 - 83,134 148,504 1,322,131 959,450 20 41,643 519 235 54,719 32,016 21,229 - 56,239 1,053,680 4,115,459 4,188,623 - - 16,994 13,156 288,553 579,528 21,249 879,795 156,886 1,215,575 6,619,014 6,517,889 - 1,001,856 62,298 815,669 3,826,994 3,700,817 22,937 - - 274,255 1,448,668 1,202,948 - - - 149,443 149,443 48,511 .... 973,547 824,822 - - 69,229 114,629 305,222 583,399 22,937 1,001,856 131,527 1,353,996 6,703,874 6,360,497 (1,6881 (122,061) 25,359 {138,421) (84,8601 157,392 - {116,800) - (74,038) {319,404) (295,798) - (116,800) - (74,038) (319,404) (295,798) (1,888) (238,861) 25,359 {212,459) (404,2641 (138,406) 24,531 358,090 51,599 286,955 910,343 1,048,749 $ 22, B43 $ t19,229 $ 76,958 $ 74,496 $ 506,079 $ 910,343 - 53- Comprehensive Annual Rnanclal Report CITY OF DENTON, TEXAS SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - SPECIAL REVENUE IRECREATION, POLICE CONFISCATION, TOURIST AND CONVENTION, AND EMILY FOWLER LIBRARY) FUNDS - (BUDGET BASIS) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Recreation Fund Pohce Confiscation Fund Variance Variance Favorable Favorable Budget Actual (Unfavorable) Bud~let Actual (Unfavorable) REVENUES Taxes $ - $ $ $ _ $ $ _ Fees for serwces 1 127,846 1,090 493 (37 353) - 20 20 Investment revenue 11 000 8,266 (2,734) - - - Miscellaneous 30,000 21,229 (8,7711 Total Revenues 1,138,846 1,098 759 (40,087) 30,000 21 249 (8,751) EXPENDITURES General government _ _ Pubhc safety 25,000 22,873 2,127 Parks and recreatmon 1,040,320 909,468 130,852 - - Capital outlay 42,825 42,265 560 - - Total Expenditures 1 083,145 951,733 131,412 25 000 22,873 2 127 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 55 701 147,026 91,325 5,000 (1,624) (6,624) OTHER FINANCING (USES) Operating transfers out (88 566) (88,566) - Total Other Financing (Uoe8) (88 566) (88 566) EXCESS OF REVENUES OVER (UNDER) EXPENDITURES AND OTHER USES (32,865) 58 460 91,325 5,000 (1,624) (6 624) FUND BALANCE - October I 83,196 83,196 46,158 46,158 - FUND BALANCE - September 30 ~ 50,331 $ 141,656 $ 91,325 951,158 944,634 $(6,624) - 54- Comprehenmve Annual Fmancml Report CITY OF DENTON, TEXAS Tounst and Convention Fund Emily Fowler L~brar¥ Fund Variance Variance Favorable Favorable Budget Actual (Unfavorable) Bud~let Actual (Unfavorable) 830,000 ~ 838,152 $ 8,152 $ - $ $ - - 95,000 83,134 (11,866) 36,000 41,643 5,643 - 519 519 - - 11,052 11,052 866,000 879,795 13,795 95,000 94,705 (295) 1,097,066 1,119,117 (22,051) 56,487 56,341 146 - - 38,513 38,376 137 1,097,066 1,119,117 (22,051) 95,000 94,717 283 (231,066) (239,322) (8,256) - (12) (12) (231,066} (239,322) (8,256) - (12) (12) 412,808 412,808 - 40,816 40,816 $ 181,742 ~ 173,486 ~ (8,256} 440,8!6 $40,804 ~ (12} - 55- Comprehensive Annual F,nanc,al Report CITY OF DENTON, TEXAS of - 56- Comprehensive Annual F,nanc,al Report CITY OF DENTON, TEXAS SUMMARY OF CAPITAL PROJECTS FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Airport Improvement Grant Fund - to account for the FAA Grant ~n a~d for runway extension and airport development General Projects Funds - to account for ~nvest~ng nonrecurnng funds m capital plant expansion or improvements, extraordinary maintenance projects, facility construction or other large nonrecurring projects funded by operating revenues Street Improvement Fund - to account for repairs and rehab~htat~on of c~ty streets funded by bond proceeds Williams Square Fund - to account for pawng downtown parking lot to prowde parking lot m central bus,ness d~stnct funded by bond proceeds Construction Projects Fund - to account for major rehab~htat~on and construction of fac~ht~es funded by bond proceeds Other - to account for m~scellaneous capital revenues and expenditures - 57 - Comprehenelve Annual Financial Report CITY OF DENTON, TEXAS COMBINING BALANCE SHEET - ALL CAPITAL PROJECTS FUNDS SEPTEMBER 30, 2000 A~rport Street ASSETS Improvement Grant General Prolects Improvements Wdhams Square Cash and deposits $ - $ $ _ $ _ Investments 14,185 1,805,402 968,962 12,560 Receivables (net of allowances for uncollect~bles) - Accrued interest 34,649 14,546 - Other receivables 80,530 - Due from other funds 8,674 6,135 - Due from other governments 31,092 - Total Assets $45,277 $1,848,725 $1,070,173 $12,560 LIABILITIES AND FUND BALANCES Liabilities Accounts payable and accrued habd~t~es - 7,620 94,139 Reta~nage payable - - 39,897 Arbitrage payable - - Due to other funds - 928,972 322,971 Deferred revenues 43,176 - - Total Llabilitms 43 176 936,592 457,007 Fund Balance Reserved for encumbrances - - 82,585 - Reserved for capital prolects 2,101 912,133 530,581 12,560 Total Fund Balance 2,101 912,133 613,166 12,560 Total Liabilities and Fund Balance $45,277 $1,848,725 , $1,070,173 $12 560 , - 58- Comprehensive Annual Financml Report CITY OF DENTON, TEXAS Totals Construction Pro~ects Other September 30, 2000 September 30, 1999 $ $ $ 4,194,037 9,789,032 2,484,060 25,074,201 23,000,603 318,324 57,823 425,342 290,994 80,530 78,080 117,134 131,943 1,791,818 - 15,283 46,375 148,695 $20,~24,490 $2,557,16~ $25,758,391 $29,504,227 $ 214,792 $ 12,612 $ 329,163 $ 6,773,711 33,295 - 73,192 221,701 180,869 1,171 182,040 182,039 668,824 63,593 1,984,360 3,345,256 - - 43,176 43,176 1,097,780 77,376 2,611,931 10,565,883 2,883,185 173,618 3,139,388 1,521,735 16,243,525 2,306,172 20,007,072 17,416,609 19,126,710 2,479,79~ 23,146,460 18,938,344 $20,224,490 ~2,557,16~ 825,758,391 $29,504,227 - 59- Comprehensive Annual Financial Report CITY OF DENTON, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL CAPITAL PROJECTS FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 A~rport Street Improvement Grant General Pro~ects Improvement WIIhams Square REVENUES Investment revenue $ $ 181,416 $ 61,700 $ - Intergovernmental 23,597 - - M~scellaneous 4,510 20,625 474,207 - Total Revenues 28,107 202,041 535,907 - EXPENDITURES Current General Government 607 - - Capital outlay 12,383 461,191 1,047,874 - Debt serwce Interest and fiscal charges 3,374 1,000 - Total Expenditures 12,383 465,172 1,048,874 - EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 15,724 {263,131 ) {512,967) - OTHER FINANCING SOURCES (USES) Proceeds of long term debt - - Proceeds of refunding bonds - - Payment to refunded bond escrow agent - _ Proceeds of capital lease - _ Operating transfers m - _ Operating transfers out - (163,574) (30,000) Total Other Financing Sources (Uses) - (163,574) (30,000) EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 15,724 (426,705) (542,967) FUND BALANCES (Deficit} - October 1 (13,623) 1,338,838 1,156,133 12,560 FUND BALANCES - September 30 ~ 2,101 $ 912,133 $ 613,166 912,560 - 60 - Comprehensive Annual F~nanclal Report CITY OF DENTON, TEXAS Totals Year Ended Construction Projects Other September 30, 2000 September 30, 1999 1,157,836 $ 234,009 $ 1,634,961 $ 888,387 - 934,422 958,019 83,829 365,301 (7,065) 857,578 678,150 1,523,137 1,161,366 3,450,558 1,650,366 - 31,406 32,013 - 2,848,388 672,225 5,042,061 15,135,053 37,437 271 42,082 - 2,885,825 703,902 5,116,156 15,135,053 (1,362,688) 457,464 (1,665,598) (13,484,687) 6,625,000 - 6,525,000 9,526,351 - - - 5,538,780 - - - (5,538,780) - - - 2,148,361 - - - 250,000 (557,712) - (751,286) (600,000) 6,067,288 - 5,873,714 11,324,712 4,704,600 457,464 4,208,116 (2,159,975) 14,422,110 2,022,326 18,938,344 21,098,319 ~19,!26~710 $2,479,790 , 923,146,460 $ 18,938,344 -61 - Comprehensive Annual F,nanclal Report CITY OF DENTON, TEXAS of -62- Comprehens,ve Annual F~nanclal Report CITY OF DENTON, TEXAS SUMMARY OF ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Utility System- to account for the provision of ut~hty services to the residents of the C~ty All act~wt~es necessary to prowde such serwces are accounted for ~n th~s Fund, ~nclud~ng, but not hm~ted to, adm~mstrat~on, operations, maintenance, financing and related debt service Sol~d Waste - to account for the prows~on of sohd waste services to the residents of the c~ty All activities necessary to provide such services are accounted for ~n th~s Fund, Including, but not limited to, administration, operations, maintenance, financing and related debt service Building Inspections - to account for the prows~on of building ~nspect~on serwces to the residents of the c~ty All act~wt~es necessary to prowde such serwces are accounted for ~n th~s Fund, ~nclud~ng, but not hm~ted to, adm~mstrat,on, operations, maintenance, financing and related debt service - 63 - Comprehensive Annual Financial Report CITY OF DENTON, TEXAS COMBINING BALANCE SHEET - ALL ENTERPRISE FUNDS SEPTEMBER 30, 2000 ASSETS Ut~hty System Sohd Waste Cash and deposits $ $ Investments Receivables (net of allowances for uncollect~bles) - Accounts 7,180,072 1,172,492 Unb~lled ut~hty serwce 6,938,195 Accrued ~nterest 168,913 118,973 Other 915,275 14,976 Due from other funds 1,753,510 3,009 Merchandise ~nventory 697,707 24,712 Prepaid ~tems _ _ Deferred bond ~ssuance costs 1,087,456 87,409 Restricted assets - Cash and deposits _ _ Investments 161,958,282 9,394,589 Accounts receivable (net of allowance for uncollect,bles) 7,497,902 351,740 Accrued ~nterest 968,363 34,816 Unbdled ut~hty serwce 2,919,679 - Due from other funds 7,333,922 - Other 91,323 - Advance to other funds 2,551,049 F~xed assets Inet of accumulated depreciation) 212,183,810 9,030,278 Total Assets , $414,245,456 $20°232,994 (Continued} - 64 - Comprehensive Annual F,nanclal Report CITY OF DENTON, TEXAS Totals Bu~ld~n~l Inspections September 30, 2000 September 30, 1999 $150,498 $ 150,498 ~; 1,721,228 557,069 557,069 4,894,975 8,352,564 9,256,246 6,938,195 8,550,379 327 288,213 235,034 6,554 936,805 509,237 613 1,757,132 1,317,189 722,419 722,421 461 1,174,865 2,073,392 10,310,594 171,352,871 116,752,409 7,849,642 271,960 1,003,179 197,712 - 2,919,679 - - 7,333,922 3,446 - 91,323 - - 2,551,049 879,784 7,898 221,221,986 201,688,619 $722,959 $435,201,411 $359,385,086 65- Comprehensive Annual Financial Report CITY OF DENTON, TEXAS COMBINING BALANCE SHEET - ALL ENTERPRISE FUNDS (Concluded) SEPTEMBER 30, 2000 LIABILITIES AND FUND EQUITY Ut~hty System Sohd Waste Liabilities Accounts payable and accrued expenses $ 7,267,887 $ 214,555 Reta~nage payable 25,914 - Accumulated unpaid compensated absences 867,413 157,162 Deposits 1,122,777 14,224 Payable from rest.cted assets - Accounts payable and accrued expenses 1,132,268 511,001 Reta~nage payable 14,277 35,221 Due to other funds 606,382 13,771 Advance from other funds 2,397,865 Accrued ~nterest 3,326,697 70,455 Revenue and general obhgat~on bonds payable 5,850,000 943,354 Deferred revenue ~mpact fees 3,167, 514 - Due to other funds 9,516,341 142,440 Advances from other funds 153,184 General obhgat~on bonds payable 1,690,570 Certificates of obhgat~on payable 4,722,145 Revenue bonds payable (net of bond d~scount) 161,399,153 Deferred amount on refunding (510,379) Notes payable 3,141,222 Landfill closure/postclosure cost 2,471,435 Total Liabilities 196,927,464 13,537,382 Fund Equity Contnbuted capital - From other mumc~paht~es or governmental umts 14,909,624 - In a~d of construction 46,277,740 - Less Accumulated depreciation 135,410,637) - Net contributed capital 25,776,727 - Retamed earmngs - Reserved for bond retirement 28,791,042 - Reserved for capital projects 47,816,198 1,914,706 Reserved for landfill closure - 1,501,772 Reserved for landfill closure debt retirement 293,000 Reserved for rate stab~hzat~on 64,645,000 1,000,000 Reserved for emergency/working capital 4,900,000 350,000 Reserved for automated routes 250,000 Reserved for plant regulation and rehab~htat~on 1,000,000 - Reserved for SCADA filter control 375,000 - Reserved for water tower painting 1,350,000 - Reserved for infrastructure financing 2,000,000 Reserved for O & M contingency 750,000 250,000 Reserved for capital construction 1,000,000 250,000 Reserved for lake enwronment restoration 90,000 Reserved for drainage 1,000,000 Unreserved 37,824,027 886,134 Total Retained Earmngs 191,541,267 6,695,612 Total Fund Equity 217,317,994 6,695,612 Total Llabd~t~es and Fund Equity $4t4,245,458 ~20,232,994 - 66 - Comprehensive Annual Financial Report CITY OF DENTON, TEXAS Totals Bu~ldtng Inspections September 30, 2000 September 30, 1999 45,939 $ 7,528,381 $ 10,965,384 25,914 5,712 1,024,575 924,662 1,137,001 1,474,470 1,643,267 817,330 49,498 24,727 620,153 6,564 - 2,397,865 - - 3,397,152 2,193,721 - 6,793,354 5,299,898 - 3,167,514 - 9,658,781 2,604,776 - 153,184 879,784 - 1,690,570 1,602,738 - 4,722,145 5,958,993 - 161,399,153 113,325,000 - (510,379) (437,818) - 3,141,222 3,135,454 - 2,471,435 2,039,447 45,939 210,510,785 150,820,842 5,460 14,915,084 14,915,084 - 46,277,740 35,965,121 ~5,460) 135,418,097) 132,685,1781 - 25,776,727 18,195,027 - 28,791,042 18,339,938 - 49,730,904 21,037,976 - 1,501,772 1,117,867 - 293,000 398,1 O0 - 65,645,000 66,585,000 5,250,000 5,250,000 250,000 - 1,000,000 - 375,000 - 1,350,000 1,150,000 2,000,000 2,000,000 1,000,000 700,000 1,250,000 1,050,000 90,000 150,000 1,000,000 1,000,000 6~7,020 39,387,181 71,590,336 677,020 198,913,899 190,369,217 677,020 224,690,626 208,564,244 ~7,;~,,959 ', ,,,,, ,, $435~201'~411 , $359,385,086 - 67 - Comprehensive Annual F~nanclal Report CITY OF DENTON, TEXAS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ALL ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Ut~hty System Sohd Waste OPERATING REVENUES Electric serwce $ 83,739,948 $ - Water serwce 19,269,891 - Wastewater serwce 12,066,564 - Charges for serwces 215,020 8,950,336 M~scellaneous 194,267 36,052 Total Operating Revenues 115,485,690 8,986,388 OPERATING EXPENSES Purchased power 47,437,168 - Fuel 11,894,046 - Purchase of water 146,135 - Salaries and wages 13,671,331 2,948,897 Materials and supphes 2,379,177 379,908 Maintenance and repairs 3,881,388 895,074 Depremat~on 8,539,836 1,849,398 Adm~mstrat~ve cost 11,460,934 2,825,306 Closure/Postclosure cost - 431,988 M~scellaneous 7,932,392 331,583 Total Operating Expenses 107,342,407 9,662,154 Operating Income 8,143,283 (675,766) NONOPERATING REVENUES (EXPENSES) Investment revenue 8,327,680 487,879 Interest expense and fiscal charges (7,637,703) (9,753) Other (24,862) 2,156 Total Nonoperatmg Revenues (Expenses) 665,115 480,282 Income (Loss) Before Operating Transfers 8,808,398 (195,484) OPERATING TRANSFERS IN (OUT) Operating transfers ~n 85,000 - Operating transfer (out) (12,372) - Total Operating Transfers In (Out) 72,628 - Net Income (Loss) 8,881,026 (195,484) Add Depremat~on of fixed assets acquired w~th contributed capital 2,725,459 - Increase (decrease) m retained earmngs 11,606,485 (195,484) RETAINED EARNINGS - October 1 as previously stated 183,136,475 6,891,096 Prior period adJustment (Note 14) {3,201,693) - RETAINED EARNINGS - October I aa restated 179,934,782 6,891,096 RETAINED EARNINGS - September 30 $191,541,2§7 $6,695,612 - 68- - Comprehensive Annual F;nanclal Report CITY OF DENTON, TEXAS Totals Year Ended Building Inspections September 30, 2000 September 30, 1999 - t~ 83,739,948 $ 78,654,866 - 19,269,891 17,829,251 - 12,066,564 10,815,175 ,315,581 10,480,937 9,139,429 - 230,319 293,759 ,315,581 125,787,659 116,732,480 - 47,437,168 41,621,064 - 11,894,046 8,641,837 - 146,135 97,797 665,848 17,286,076 15,380,724 20,382 2,779,467 2,520,744 9,826 4,786,288 4,211,471 3,924 10,393,158 8,138,200 142,351 14,428,591 13,081,145 - 431,988 320,701 165,521 8,429,496 8,789,197 ,007,852 118,012,413 102,802,880 307,729 7,775,246 13,929,600 22,185 8,837,744 7,408,934 (7,647,456) (6,272,814) (22,706) 750,736 22,185 1,167,582 1,886,856 329,914 8,942,828 15,816,456 85,000 565,747 (12,372) (65,136) 72,628 500,611 329,914 9,015,456 16,317,067 5,460 2,730,919 2,242,146 335,374 11,746,375 18,559,213 341,646 190,369,217 171,810,004 {3,201,693) 341,646 187,167,524 171,810,004 $ ~ 677,020 ,, t~ 198,913~899 $190,369,217 - 69 - Comprehensive Annual Financ,al Report CITY OF DENTON, TEXAS COMBINING STATEMENT OF CASH FLOWS - ALI ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30 2000 Ut~hty System Sohd Waste Cash flows from operating actlwt~es Cash received from customers $ 100,503,845 $ 7,821,321 Cash pa~d to employees for serwces (13,592,876) (2,927,439) Cash pa~d to supphers (84,233,483) (4,022,575) Net cash provided by operating actiwt~es 2,677,486 871,307 Cash flows from noncapital financing activities Operating transfers to other funds (12,372) - Operating transfers from other funds 85,000 - Advances to other funds (2,397,865) Advances from other funds - 2,397,865 Pnnc~pal payment on long term advances from other funds (650,000) (76,600) Payment received on long-term advances to other funds 726,600 Other sources from noncap~tal financing - Net cash provided by (used for) noncap~tal finanmng activities (2,248,637) 2,321,265 Cash flows from capital and related financing actlwties Proceeds from ~ssuance of refunding bonds Payment to refunding bond escrow agent Proceeds received from cont.buted capital 10,312,619 Pnnc~pal payments on revenue bonds and certificates of obhgat~on (4,620,000) (885,560) Interest and hscal charges (6,573,783) (123) Proceeds from ~ssue of revenue bonds and certificates of obhgat~on 54,880,000 - Proceeds from ~ssue of notes payable 5,768 - Pnnc~pal payment on notes payable _ Proceeds from ~mpact fees 3,176,514 Acquisition and construction of fixed assets (28,753,414) (1,162,308) Net cash provided by (used for) capital and related financing activities 28,427,704 (2,047,991 Cash flows from investing activities Proceeds from sale and matu.t~es of ~nvestment securities 117,142,875 5,822,987 Purchase of investment secu.t~es (162,751,510) (9,922,691 Interest received on ~nvestments 7,667,975 370,966 Net cash provided by (used for) investing activities (37,940,§80) (3,728,738) Net ~ncrease (decrease) m cash and cash equivalents (9,084,107) (2,584,157) Cash and cash equivalents - October 1 9,084,107 2,584,157 Cash and cash equivalents - September 30 $ - - 70 - Comprehensive Annual Financ;al Report CITY OF DENTON, TEXAS Totals Year Ended Building Inspections September 30, 2000 September 30, 1999 $1,316,344 $ 109,641,510 $119,909,298 (647,047) {17,167,362) (17,757,452) (337,129) (88,593,187) (79,143, 631 ) 332,168 3,880,961 23,008,215 (12,372) (273,403) 85,000 (2,397,865) 2,397,865 (726,600) (1,102,000) 726,600 1,102,000 - - 1,837,543 - 72,628 1,564,140 - - 1,481,220 - - (1,481,220) - 10,312,619 25,000 - (5,505,560) (5,714,897) 462 (6,573,444) (1,893,895) - 54,880,000 1,008,726 - 5,768 - - (1,738,750) - 3,176,514 (10,804) (29,926,526) (14,549,899) (10,342) 26,369,371 (22,863,715) - 122,965,862 92,872,208 (557,069) (173,231,270) (98,829,667) 22,185 8,061,126 7,889,596 (534,884) (42,204,282) 1,932,137 (213,058) (11,881,322) 3,640,777 363,556 12,031,820 8,391,043 $ ~150,498 $ 150,498 $ 12,031,820 71- Comprehensive Annual FInancial Report CITY OF DENTON, TEXAS COMBINING STATEMENT OF CASH FLOWS - ALL ENTERPRISE FUNDS (Concluded) FOR THE FISCAL YEAR ENDED SEPTEMBER 30 2000 Ut~hty System Sohd Waste Reconcihatlon of Enterprise Funds Operating Income to Net Cash Provided by Operating Act~wt~es Operating income $ 8,143,283 $ (675,766) Adjustments Depreciation expense 8,539,836 1,849,398 CIosure/Postclosure expense - 431,988 Decrease (Increase) m receivables (7,476,441) (1,151,356) Decrease (Increase) in due from other funds (7,766,038) 43,094 Decrease (Increase) ~n ~nventones - _ Decrease (Increase) in prepaid ~tems - - Increase (Decrease) ~n accounts payable (6,698,388) 541,143 Increase (Decrease)m accumulated unpaid compensated absences 78,455 21,458 Increase (Decrease) m due to other funds 7,856,779 (188,652) Total adjustments (5,465,797) 1,547,073 Net cash provided by operating activities $ 2,677,486 $ 871,307 Supplemental Schedule for Noncaeh Capital and Related Financing Activities Noncash actlwty during the year consisted of contributed capital for the Enterprtse Funds ~n the amount of ~10,312,619 - 72- Comprehensive Annual F~nanclal Report CITY OF DENTON, TEXAS Bu,ld~n~l Inspections September 30, 2000 September 30 1999 $307,729 $ 7,775,246 $13,929,600 3,924 10,393,158 8,138,200 431,988 320,701 1,364 (8,626,433) 12,7E,6 (601) (7,723,545) 3,164,055 - 190,653 - 4ElO 1,484 (6,155,761 ) (749,2,~ 5) 18,801 118,714 123,0Ei8 (533) 7,667,594 (2,122,0EJ3) ,24,439 (3,894,285) 9,078,615 $332,168 $ 3,880,961 $23,008,215 -73- Comprehenelve Annual Financial Report CITY OF DENTON, TEXAS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - BUDGET AND ACTUAL - (BUDGET BASIS) - ALL ENTERPRISE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Utility System Variance Favorable Budget Actual (Unfavorable) OPERATING REVENUES Electric serwce $ 81 000 389 $ 83 739 948 $ 2 739 559 Water service 19 298 656 19 289 891 (28 765) Wastewater servrce 12 897 332 12 066 564 (830 768) Charges for serwces 200 000 215 020 15 020 Miscellaneous 179 824 194 267 14 643 Total Operating Revenues 113 576 001 115 485 690 1 909 689 OPERATING EXPENSES Purchased power 52 282 145 48 380 383 3 901 762 Fuel 10551 112 10950830 (399718) Purchase of water 81 500 146 135 {64 635) Salaries and wages 16 369 411 14 596 217 1 773 194 Materials and supphes 2 270 449 2 271 896 (1 447) Maintenance and repairs 3 745 051 4 003 785 (258 734) Administrative cost 8 876 909 14 182 687 (5 305 778) Closure/Postclosure cost M,scel~aneous 8 233 069 7 209 767 1 023 302 Capital outlay 8 824 216 7 896 458 927 758 Total Operating Expenses 111 233 862 109 638 158 I 595 704 Operating Income (Loss) 2 342 139 5 847 532 3 505 393 NONOPERATING REVENUES (EXPENSES) Investment revenue 5 902 158 8 327 680 2 425 522 Interest expense and fiscal charges (6 793 311 ) (7 637 703) {844 392) Other (24 862) (24 862) Total Nonoperating Revenues (Expenses) (891 153) 665 115 1 556 268 Income (Loss) Before Operating Transfers 1 450 986 6 512 647 5 061,661 OPERATING TRANSFERS IN (OUT) Operating transfer ~n 85,000 85 000 Operating transfer out 112 372) (12 372) Total Operating Transfers 72,628 72 628 Net Income (Loss) 1 523 614 6 585 275 5 061 661 RETAINED EARNINGS - October I as previously stated 183 136 475 183 136 475 - Prior per~od adjustment (3 201 693) (3 201 093) - RETAINED EARNINGS - October 1 as restated 179,934 782 179 934 782 5 061,661 RETAINED EARNINGS - September 30 (Budget Basis) 181 458 396 186 520 057 5 061 661 ENCUMBRANCES AND CAPITAL OUTLAYS NET OF DEPRECIATION INCLUDED ABOVE 5 021 210 5 021 210 RETAINED EARNINGS - September 30 $186 479 606 $191 541 267 $ 5,061 661 - 74 - ~ Comprehensive Annual Financial Report CiTY OF DENTON, TEXAS Sohd Waste Bulldln~ Inspect*ohs Tota~1 Variance Varla~3ce Variance Favorable Favor able Favorable Bud~let Actual {Unfavorable) Budget Actual {Unfavorablel Budget Actual {Unfavorable) ~ $ - $ $ ~ $ $ 81000389 $ 83 739 948 $2739559 - 19,298 656 19 269 891 {28 765) - 12 897 332 12 066 564 (830 768) 8 728 890 8,950 336 221 446 994 135 1 315 580 321 445 9 923 025 10 480 936 557 911 36 052 36,052 - 179 624 230 319 50 695 8 728 890 8 986 388 257~498 994 135 1 315 580 321 445 123 299 026 125 787~658 2 488 632 - - 52 282 145 48 380 383 3 901 762 - - 10551 112 10950830 (399 718i - - 81 500 146 135 (64 635) 2 976 520 2 930,279 46 241 638 243 625 873 15 370 19 984 174 18 152 369 I 831 805 405 711 392 361 13 350 16 464 19 642 (~ 178) 2 692 624 2 683 899 8 725 860 926 885,031 {24 103 9 582 9 826 (244) 4 615 561 4 898 642 (283 081) 1 224 353 1 239,212 {14 859) - 10 101 262 15 421 899 (5 320 637) 105 195 262,299 (157 104) - 105 195 262 299 (157 104) 1 470 258 1,170,335 299 923 68 426 74 695 (6 269) 9 771 753 8 454 797 1 316 956 257 053 196 635 60 418 12 000 9 602 ,' 398 9 093 269 8 102 695 990 574 7300018 710761152 223866 744715 739638 5077 119278595 117 453~948 1824647 1 428 872 I 910 236 481 364 249 420 575 942 32~, 522 4 020 431 8 333 710 4 313 279 315995 487879 171884 - 22185 2,~' 185 6218153 8837744 2619591 {511 803) (9 753) 502 050 - {7 305 114) {7 647 456) {342 342) 2 156 2 156 - (22 706) {22 706) {195 808) 480,282 676 090 - 22 185 2,,' 185 {1 086 961) 1 167,582 2 254 543 1 233 064 2 390,518 I 157 454 249,420 598 127 341~= 707 2 933 470 9 501 292 6 567 822 - - - 85 000 85 000 {2 028 572) 2,028,572) (537 520) (249 420~ 28E1100 {2 578 464) {2 290,364) 288 100 {2 028 572) (2 028 572) (537 520) (249 420} 28E[ 100 (2 493 464} (2 205 364) 288 100 {795 508) 361,946 1,157 454 {288 100) 348 707 63(~ 807 440 006 7 295,928 6 855 922 6 891 096 6,891,096 341 646 341 646 - 190 369 217 190 369 217 - - {3 201 693) {3,201 693) 6 891,09~6 6 891 096 341,646 341 646 - 187 167 524 187 167 524 6 095 588 7 253 042 1 157 454 53 546 690 353 63b 807 187 607 530 194 463 452 6 855 922 (557 430) (557~430) {13,333) (13 333) - 4 450 447 4 450 447 $~,638,1~8 t,~8,69§,612 $1,157,454 ~ 40,213 $ 677 020 $636 807 $192 057 977 9198 913~899 $ 6,855 922 -75- Comprehensive Annual Flnancl~al Report CITY OF DENTON, TEXAS COMBINING BALANCE SHEET - UTILITY SYSTEM SEPTEMBER 30, 2000 ASSETS Electnc System Water System Cash and deposits $ - $ Investments _ Receivables (net of allowances for uncollect~bles) - Accounts 7,180,072 Unbdled ut~hty service 6,938,195 Accrued ~nterest 168,913 Other 915,275 Due from other funds 1,753,510 Merchandise ~nventory 697,707 - Deferred bond ~ssuance costs 314,151 450,101 Restricted assets - Cash and deposits _ Investments 72,071,719 57,065,092 Accounts receivable {net of allowances for uncollect~bles) 5,942,339 874,465 Accrued ~nterest 164,520 475,184 Unb~lled utd~ty serwce 2,004,834 Other 72,360 Due from other funds 1,166,401 4,524,524 Advance to other funds 153,184 2,397,865 F~xed assets (net of accumulated depreciation) 58,154,195 105,101,386 Total Assets $155,620,181 ~1,72,965,811 (Continued) -76- Comprehensive Annual Financial Report CITY OF DENTON, TEXAS* Totals for Utd~ty System Wastewater System September 30, 2000 September 30, 1999 $ $ 1,085,330 3,641,611 7,180,072 9,256,246 6,938,195 8,177,036 168,913 227,934 915,275 486,483 1,753,510 1,271,075 697,707 697,707 323,204 1,087,456 1,979,468 - - 7,998,777 32,821,471 161,958,282 112,710,891 681,098 7,497,902 197,712 328,659 968,363 242,183 914,845 2,919,679 18,963 91,323 1,642,997 7,333,922 3,446 - 2,551,049 879,784 48,928,229 212,183,810 191,970,232 $85~59~466 $414,245,458 $340,825,915 - 77 Comprehenelve Annual F,nancml Report CITY OF DENTON, TEXAS COMBINING BALANCE SHEET - UTILITY SYSTEM (Concluded) SEPTEMBER 30, 2000 LIABILITIES AND FUND EQUITY Electric System Water System Liabilities Accounts payable and accrued expenses $ 6,994,625 $ 93,952 Reta~nage payable - 17,522 Accumulated unpaid compensated absences 422,462 287,544 Deposits 1,122,777 Payable from rest.cted assets - Accounts payable and accrued expenses 566,868 447,736 Reta~nage payable _ Due to other funds 362,712 13,512 Accrued ~nterest 597,504 1,991,800 Revenue bonds payable 1,835,000 2,360,000 Deferred revenue ~mpact fees 2,623,242 Due to other funds 3,163,257 3,323,559 Advances from other funds Revenue bonds payable (net of bond d~scount) 26,650,653 100,080,396 Deferred amount on refunding (137,781 ) {372,598) Notes payable 3,141,222 Total Liabilities 41,578,077 114,007,887 Fund Equity Contnbuted capital - From other mumc~paht.es or governmental umts 13,060 6,542 In a.d of construction 1,350,711 24,957,020 Less Accumulated depreciation {1,059,777) (11,094,772) Net contnbuted capital 303,994 13,868,790 Retained earnings - Reserved for bond retirement 6,939,531 15,713,754 Reserved for capital projects 10,829,552 16,060,380 Reserved for rate stabd~zat~on 54,145,000 7,500,000 Reserved for emergency/working capital 3,500,000 850,000 Reserved for plant regulation and rehab~htatmn - 1,000,000 Reserved for SCADA/fllter control 375,000 Reserved for water tower painting 1,350,000 Reserved for ~nfrastructure financing 1,000,000 Reserved for O & M contingency 400,000 Reserved for capital construction 500,000 250,000 Reserved for lake enwronment restoration 90,000 Reserved for drmnage 500,000 Unreserved 37,824,027 Total Retained Earnings 113,738,110 45,089,134 Total Fund Equity 114,042,104 58,957,924 Total Liabilities and Fund Equity ,*i5§~620,18~ ,, $172196,$~8il,' -78- Comprehensive Annual F~nanclal Report CITY OF DENTON, TEXAS* Totals for Ut~hty System Wastew~ter System September 30, 2000 September 30, 1999 $ 179,310 $ 7,267,887 $ 10,705,124 8,392 25,914 5,712 157,407 867,413 788,958 1,122,777 1,474,470 117,662 1,132,266 815,921 14,277 14,277 24,727 230,158 606,382 6,564 737,393 3,326,697 2,126,381 1,655,000 5,850,000 4,620,000 544,272 3,167,514 3,029,525 9,516,341 2,259,380 - - 650,000 34,668,104 161,399,153 113,325,000 - (510,379) {437,818) - 3,141,222 3,135,454 41,341,500 196,927,464 139,499,873 14,890,022 14,909,624 14,909,624 19,970,009 46,277,740 35,965,121 (23,256,088) (35,410,637) (32,685,178) 11,603,943 25,776,727 18,189,567 6,137,757 28,791,042 18,339,938 20,926,266 47,816,198 18,219,478 3,000,000 64,645,000 65,835,000 550,000 4,900,000 4,900,000 1,000,000 - 375,000 - 1,350,000 1,150,000 1,000,000 2,000,000 2,000,000 350,000 750,000 550,000 250,000 1,000,000 1,000,000 90,000 150,000 500,000 1,000,000 1,000,000 37,824,027 69,992,059 32,714,023 191,541,267 183,136,475 44,317,958 217,317,994 201,328,042 -79- Comprehens,ve Annual Financial Report CITY OF DENTON, TEXAS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - UTILITY SYSTEM FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Electric System Water System OPERATING REVENUES Elect.c serwce $ 83,739,948 $ Water serwce 19,269,891 Wastewater service Charges for serwces 215,020 - M~scellaneous 73,562 Total Operating Revenues 83,954,968 19,343,453 OPERATING EXPENSES Purchased power 46,339,167 666,449 Fuel 11,880,021 - Purchase of water - 146,135 Salaries and wages 5,891,986 4,535,511 Matenals and supphes 1,073,666 1,018,407 Maintenance and repairs 2,268,678 797,776 Deprecmt.on 3,933,476 2,776,342 Adm~mstrat~ve cost 8,640,520 1,570,692 M~scellaneous 5,545,393 867,290 Total Operating Expenses 85,572,907 12,378,602 Operating Income (Loss) (1,617,939) 6,964,851 NONOPERATING REVENUES (EXPENSES) Investment revenue 4,495,549 2,403,827 Interest expense and fiscal charges I1,187,166) (5,158,829) Other 7,288 Total Nonoperating Revenues (Expenses) 3,308,383 (2,747,714) Operating Income Before Operating Transfers 1,690,444 4,217,137 OPERATING TRANSFERS IN (OUTI Operating transfers ~n 85,000 Operating transfers (out) (12,372) - Total Operating Transfers (12,372) 85,000 Net Income 1,678,072 4,302,137 Add Deprecmt~on of fixed assets acqmred w~th cont.buted capital 45,973 1,171,172 Increase ~n retained earmngs 1,724,045 5,473,309 RETAINED EARNINGS - October I as previously stated 115,215,758 39,615,825 Prior period adjustment (Note 14) (3,201,693) - RETAINED EARNINGS - October 1 as restated 112,014,065 39,615,825 RETAINED EARNINGS - September 30 $113,738,110 $45,089,134 - 80 Comprehensive Annual Financial Report CITY OF DENTON, TEXAS Totals for Utility System Year Ended Wastewater System September 30, 2000 September 30, 1999 $- $ 83,739,948 $ 78,654,866 - 19,269,891 17,829,251 12,066,564 12,066,564 10,815,175 - 215,020 265,897 120,705 194,267 264,866 12,187,269 115,485,690 107,830,055 431,552 47,437,168 41,621,064 14,025 11,894,046 8,641,837 - 146,135 97,797 3,243,834 13,671,331 12,391,156 287,104 2,379,177 2,130,153 814,934 3,881,388 3,373,470 1,830,018 8,539,836 7,931,638 1,249,722 11,460,934 11,383,921 ~,519,709 , 7,932,392 7,722,216 9,390,898 107,342,407 95,293,252 2,796,371 8,143,283 12,536,803 1,428,304 8,327,680 7,116,779 (1,291,708) (7,637,703) (5,853,(,57) (32,150) (24,862) 796,480 104,446 665,115 2,059,602 2,900,817 8,808,398 14,596,405 - 85,000 565,747 - (12,372) (65,136) - 72,628 500,611 2,900,817 8,881,026 15,097,016 1,508,314 2,725,459 2,242,146 4,409,131 11,606,485 17,339,162 28,304,892 183,136,475 165,797,313 (3,201,693) 25,304,892 179,934,782 165,797,J13 $32,714,023 ~191,541,267 $183,136,475 -81 - Comprehensive Annual Rnanc~al Report CITY OF DENTON, TEXAS COMBININO STATEMENT OF CASH FLOWS - UTILITY SYSTEM FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Electrm Water System System Cash flows from operating activities Cash received from customers $ 76,315,849 $ 14,430,735 Cash paid to employees for services (5,872,434) (4,463,253) Cash pa~d to suppliers (76,180,787) (5,049,196) Net cash provided by (used for) operating activities (5,737,372) 4,918,286 Cash flows from noncapital financing activities Operating transfers to other funds (12,372) Operating transfers from other funds 85,000 Advances to other funds - (2,397,865) Principal payment on long-term advance from other funds - Payment received on long term advance to other funds 726,600 Other sources from noncap~tal financing - Net cash provided by (used for) noncapital financing activities 714,228 (2,312,865) Cash flows from capital and related financing activities Proceeds received from contributed capital 10,000 5,226,580 Principal payments on revenue bonds (2,695,851) (1,003,754) Interest and fiscal charges (989,116) {4,604,378) Proceeds from sale of revenue bonds 13,435,000 22,705,000 Proceeds from issuing of notes payable - 5,768 Proceeds from ~mpact fees - 2,632,242 Principal payment of notes payable - _ Acquisition and construction of fixed assets (11,013,624) (8,083,072) Net cash provided by (used for} capital and related financing activities (1,253,591) 16,878,386 Cash flows from investing activities Proceeds from sale and maturities of investment securities 71,018,213 33,491,298 Purchase of ~nvestment securities (69,189,348) (61,652,958) Interest received on investments 4,253,676 2,111,910 Net cash provided by (used for) Investing activities 6,082,541 (26,049,750) Net ~ncrease (decrease) m cash and cash equivalents (194,194) (6,565,943) Cash and cash equivalents - October 1 194,194 6,565,943 Cash and cash equivalents - September 30 $ ~ (Continued) - 82 - Comprehena;ve Annual F~nanclal Report CITY OF DENTON, TEXAS Totals for Utd~ty System Year Ended Wastewater System September 30, 2000 September 30, 1999 9,757,261 $100,503,845 $111,034,504 (3,257,189) (13,592,876) (12,694,414) (3,003,500) (84,233,483) (76,038,809) 3,496,572 2,677,486 22,301,381 (12,372) (233,120) 85,000 (2,397,865) (650,000) (650,000) (950,000) - 726,600 1,102,000 - - 1,837,543 {650,000) (2,248,637) 1,756,423 5,076,O39 10,312,619 25,O00 (920,395) (4,620,000) (5,034,999) {980,289) (6,573,783) (1,475,563) 18,740,000 54,880,000 - - 5,768 - 544,272 3,176,514 ( 1,738,750) - (1,738,750) (9,658,718) {28,753,414) (13,410,092) 12,802,909 28,427,704 (21,634,404) 12,633,364 117,142,875 89,892,833 (31,909,204) (162,751,510) (98,184,568} 1,302,389 7,687,975 7,455,822 (17,973,451) (37,940,660) (835,913) (2,323,970) (9,084,107) 1,587,487 2~323,970 9,O84,107 7,496,620 ~ ~ .. ~ 9,0s4,107 - 83 Comprehensive Annual Financ,al Report CITY OF DENTON. TEXAS COMBINING STATEMENT OF CASH FLOWS - UTILITY SYSTEM (Concluded) FOR THE FISCAL YEAR ENDED SEPTEMBER 30 2000 Electric Water System System Reconciliation of Ut~hty System Operating Income to Net Cash Provided by Operating Activities Operating ~ncome (loss) $(1,617,939) $ 6,964,851 Adjustments Depremat~on expense 3,933,476 2,776,342 Decrease (Increase) ~n receivables (5,523,721) (1,055,850) Decrease (Increase) m due from other funds (1,772,085) (4,484,313) Decrease (Increase) ~n inventories Decrease (increase) ~n prepaid items Increase (Decrease) m accounts payable (4,113,876) (2,443,975) Increase (Decrease) m accumulated unpaid compensated absences 19,552 72,258 Increase (Decrease) m due to other funds 3,337,221 3,088,973 Total adjustments (4,119,433) (2,046,565) Net cash provided by (used for) operating act~wt~es ${5,737,372) $ 4,918,286 Supplemental Schedule for Noncaah Cap~tal end Related Financing Activities Noncash act~wty du.ng the year consisted of contributed cap~tal for the Electric, Water, and Wastewater Funds ~n the amount of $10,000 $5 226 580, and $5 076,039 respect~ve)y - 84 - Comprehensive Annual Financial Report CITY OF DENTON, TEXAS Wastewater System September 30, 2000 September 30, 1999 $2,796,371 t~ 8,143,283 $12,536,803 1,830,018 8,539,836 7,931,638 (896,870) (7,476,441) 21,195 1,509,640) (7,766,038) 3,183,356 - 190,653 - 490 (140,537) (6,698,388) 364,007 (13,355) 78,455 91,958 1,430,585 7,856,779 (2,018,719) 700,201 (5,465,797) 9,764,578 3,496,572 $ 2,6,77,486,, , $22,301,381 - 85 * Comprehensive Annual F;nanclal Report CITY OF DENTON, TEXAS of - 85 - Comprehensive Annual F~nanc~al Report CITY OF DENTON, TEXAS SUMMARY OF INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Materials Management Fund- to account for the financing of goods and services prowded by Materials Management to other C~ty departments Such costs provided by Matenals Management are b~lled to the other departments at standard labor charges and cost of parts plus 13% Actual costs ~nclude deprec~atmn on machinery and equipment used to prowde the service Fleet Services Fund- to account for the financing of goods and serwces prowded by the Municipal Garage and Machine Shop to other C~ty departments Mumc~pal Garage and Machine Shop b~ll~ngs ~nclude labor charges and cost of parts plus 25% Actual costs ~nclude depremat~on on the building, ~mprovements, machinery, and equipment used to prowde the serwce Motor Pool Fund - to account for the purchase of C~ty vehicles and equipment not budgeted ~n other funds These vehicles are then leased to other C~ty departments Monthly charges are equal to the vehicle cost less salvage value d~wded by the expected hfe of the vehicle R~$k Retention Fund- to account for the accumulation of resources for the payment of employee insurance claims and insurance policies Communication Fund-to account for the accumulation of resources for the operation and marntenance of the C~ty's commumcat~ons systems, ~nclud~ng the 800 MHz radio system and the ~nternal telephone network Technology Services Fund-to account for the accumulation of resources to provide computer programming services, systems analysis, imaging, pnnt shop, and office services to C~ty departments - 87 - Comprehensive Annual Financial Report CITY OF DENTON, TEXAS COMBINING BALANCE SHEET - ALL INTERNAL SERVICE FUNDS SEPTEMBER 30, 2000 Materials ASSETS Management Fleet Serwces Motor Pool Cash and deposits $ $ _ $ Investments _ _ Receivables - Accrued ~nterest _ _ Other 15,413 18 - Due from other funds _ _ Merchandise ~nventory 3,319,213 127,636 - Prepaid ~tems 8,833 - - Long-term lease 32,590 - - Restncted assets - Cash and deposits - _ Investments - 250,032 6,764,471 Accrued interest - - 158,659 Due from other funds - - 82,341 F~xed assets (net of accumulated depreciation) 141,886 2,822,116 9,199,235 Total Assets $3,517,935 $3,199,802 $16,204,706 LIABILITIES AND FUND EQUITY Liabilities Accounts payable and accrued expenses 332,437 105,492 2,624 Accumulated unpaid compensated absences 32,183 25,625 Payable from restricted assets - Accounts payable and accrued expenses - 2,983 1,897 Due to other funds - Claims payable Accrued ~nterest payable 14,883 15,956 Due to other funds 2,923,375 182,586 - Leases payable 20 347 - General obligation bonds payable 36,328 Certificates of obligation 2,611,658 2,028,701 Total Liabilities 3,308,342 2,943,227 2,085,506 Fund Equity Contributed capital 281,391 7,455,888 Less Accumulated depreciation (281,391) (6,312,327) Net contributed capital 1,143,561 Retained earnmgs - Reserved for capital projects 247,049 56,420 Reserved for fleet replacement - 6,947,154 Reserved for future claims _ _ Unreserved 209,593 9,526 5,972,065 Total Retained Earnings 209,593 256,575 12,975,639 Total Fund Equity 209,593 256,575 14,119,200 Total Lleblhtles and Fund Equity $3,517,93~ ,, $3,199 802 ~16 204,706 * 88 - Comprehensive Annual Financial Report CITY OF DENTON, TEXAS Totals Technology R~sk Retention Commumcat~ons Serwces September 30, 2000 September 30, 1999 $ - $ - ~ $ ~ 3,036,362 - 121,059 945,343 1,066,402 4,407,548 - - 3,431 3,431 101,329 - - 15,431 34,472 - - 823,675 - - - 3,446,849 2,925,681 - - - 8,833 15,281 - - - 32,590 - - - - 3,935,513 5,333,247 501,503 110,487 12,959,740 4,598,107 69,000 - - 227,659 3,303,635 30,069 - - 112,410 30,056 129,787 2,816,556 15,139,636 12,121,810 $5,462,372 $752,349 ~3,875,817 t~33,012,98t $35,303,413 - 21,842 36,443 498,838 2,595,142 - 16,407 96,042 170,257 111,191 120,157 4,644 19,773 149,~54 874,493 .... 1,144,667 473,460 - - 473,460 506,488 - - - 30,839 38,578 - - - 3,105,961 467,184 - - 48,680 69,027 309,829 - - - 36,328 41,715 - 575,094 - 5,215,453 8,028,734 593,617 617,987 200,938 9,749,617 14,218,021 - - 3,992,383 11,729,662 8,973,237 - - (1,708,348) (8,302,066) (7,037,778) - - 2,284,035 3,427,596 1,935,459 - 496,859 90,714 891,042 2,097,158 - - - 6,947,154 10,355,595 4,838,699 - - 4,838,699 4,598,107 30,056 (362,497) 1,300,130 7,158,873 2,099,073 4,868,755 134,362 1,390,844 19,835,768 19,149,933 4,868t755 134,362 3,674,879 23,263,364 21,085,392 ,5,48~372 ~752,349 ~3,875,8!7 $33,~1~1 ~35r303~,4!,~ ...... - 89 - Comprehensive Annual Financial Report CITY OF DENTON, TEXAS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ALL INTERNAL SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Materials Uana~)ement Fleet Serwces Motor Pool OPERATING REVENUES Charges for goods and serwces $5,726,226 $2,496,612 $ 2,937,407 Premiums U~scellaneous _ _ Total Operating Revenues 5,726,226 2,496,612 2,937,407 OPERATING EXPENSES Salaries and wages 475,405 718,652 - Matermls and supphes 5,905,353 1,642,964 198 Maintenance and repairs 12,172 18,827 - Depreciation 24,884 19,891 2,516,528 Insurance 7, I00 - Administrative cost _ _ M~scellaneous 163,357 251,801 291 Total Operating Expenses 6,581,171 2,659,235 2,517,017 Operating Income (Loss) 1854,945) { 162,623) 420,390 NONOPERATING REVENUES (EXPENSES) Investment revenue - 29,816 408,744 Interest expense and fiscal charges - (161,956) (142,285) Other (5,862) 80,409 Total Nonoperating Revenuee (Expenses) 15,862) (132,140) 346,868 Income (Loss) Before Operating Transfers (860,807) {294,763) 767,258 OPERATING TRANSFERS IN (OUT) Operating transfers m 128,945 - Operating transfers (out) (17,850) (163,81 O) Total Operating Transfers In (Out) 111,095 (163,810) Net Income ILoss) (860,807) (183,668) 603,448 Add Depreciation of fixed assets acquired w~th contributed capital - 359,681 Increase (Decrease) ~n retained earmngs (860,807) (183,668) 963,129 RETAINED EARNINGS - October 1 1,070,400 440,243 12,012,510 RETAINED EARNINGS - September 30 $ ,209,593 $ 256,575 $120975,639 - 90 - Comprehensive Annual F;nanc~al Report CITY OF DENTON, TEXAS Totals Year Ended Technology R~sk Retention Commumcat~ons Serwces September 30, 2000 September 30, 1999 $691,956 $3,612,968 $15,465,169 $11,911,670 5,719,158 - - 5,719,158 4,998,522 - - 321 5,719,158 691,956 3,612,968 21,184,327 16,910,513 282,158 218,112 1,495,338 3,189,665 1,995,842 2,384 46,889 79,035 7,676,823 5,037,257 6,297 459,567 496,863 408,027 11,995 530,463 3,103,761 2,689,069 4,311,307 - - 4,318,407 3,912,970 403,000 - - 403,000 526,921 633~732 216,437 1,678,924 2,944,542 502,164 5,632~581 499,730 4,243,327 22,133,061 15,072,250 86,577 192,226 (630,359) (948,734) 1,838,263 433,002 849 75,310 947,721 637,974 - (29,382) (16,718) (350,341) (94,081) 124,031 - - 198,578 9,317 557~033 (28,533) 58,592 795,958 553,210 643,610 163,693 (571,767) (152,776) 2,391,473 30,038 - - 158,983 50,000 (403,000) - (584,660) (268,825) (372,962) (425,677) (218,825) 270,648 163,693 (571,767) (578,453) 2,172,648 904,607 1,264,288 464,152 270,648 163,693 332,840 685,835 2,636,800 4,598~,107 (29,331) 1,058,004 19,149,933 16,513,133 $4,868~,755 $t~4,352 91,390,844 $19,835,768 $19,149,933 -91 - Comprehensive Annual F~nanclal Report CITY OF DENTON, TEXAS COMBINING STATEMENT OF CASH FLOWS - ALL INTERNAl. SERVICE FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Matenals Management Fleet Services Cash flows from operating activities Cash received from customers $ 5,741,422 $ 2,656,774 Cash pa~d to employees for services (453,091) (717,966) Cash pa~d to supphers (5,230,810) (2,551,533) Net cash provided by {used for) operating act~wt~es 57.521 (612,725) Cash flows from noncap~tal financing activities Operating transfers out to other funds - (17,8501 Operating transfers from other funds 128,945 Other sources (uses) from noncap~tal financing (5,862) - Net cash prowded by (used for) noncapital financing activities (5,862) 111,095 Cash flows from capital and related financing activities Principal payments on certificates of obligation/general obhgat~on bonds (146,334) Proceeds received from contnbuted capital _ Interest and fiscal charges (176,069) Proceeds from ~ssue of cert~hcates of obhgat~on 100,000 Acquisition and construction of fixed assets (51,059) (1,766,389) Proceeds from sale of fixed assets Net cash provided by {used for) capital and related financing activities (51,659) (1,988,792) Cash flows from investing activities Proceeds from sale and maturities of investment securities - Purchase of ~nvestment secu.t~es - {250,032) Interest received on ~nvestments - 29,818 Net cash provided by (used for) Investing activities - (220,216) Net Increase (decrease) ~n cash and cash equivalents - (2,710,638) Cash and cash equivalents - October I - 2,710,638 Cash and cash equivalents - September 30 $ - $ _ Reconciliation of Internal Service Operating Income to Net Cash Provided by (Used for) Operating Activities Operating ~ncome (loss) $ (854,945) $ (162,623) Adjustments Depreciation expense 24,884 19,891 (Gain) on sale of fixed asset (32,590) - Decrease (Increase) ~n receivables 15,196 482 Decrease ~n due from other funds 159,680 Decrease (Increase) ~n ~nventones {493,389) {27,779) Increase (Decrease) in accounts payable 14,254 - Increase (Decrease) in leases payable (1,559,478) (780,792) Increase (Decrease) ~n accumulated unpaid compensated absences 22,314 886 Increase (Decrease) ~n due to other fund 2,921,275 177,730 (Decrease) ~n claims payable _ Total adjustments 912,466 (450,102) Net cash provided by (used for) operating activities $ 57,521 $ {612,725) -92- Comprehensive Annual F~nancial Report CITY OF DENTON, TEXAS Totals Year Ended R~sk Technology September 30, September 30, Motor Pool Retention Commumcat~ons Serwces 2000 1999 $ 2,489,469 $ 5,764,043 $ 691,955 $ 7,306,876 $ 24,650,539 914,532,253 - (282,158) (215,030) {1,462,355) (3,130,600) (2,351,578) (34,737) (5,300,124) (286,044) {3,906,943) (17,310,191) (9,033,419) 2,454~732 t 81,761 190,881 1,937,578 4,209,748 3,147,256 (163,81 O) (403,000) - (584,660) (268,8251 - 30,038 - 158,983 50,000 - 124,031 - 118,169 (71,895) (163,810) (248,931) - (307,508) (290,720) (237,681) - (18,745) (402,760) {132,569) - - 3,055 3,055 (135,911) (34,115) (228,559) {574,654) (87,287) - 150,000 250,000 6,741,649 (2,601,561) 3,826 (60,008) (1,555,278) (6,031,069) (4,940,290) - 82,529 (2,975,153) 3,826 37,132 (1,780,782) {6,755,428) 1,664,032 3,653,141 3,802,599 - 1,700,000 9,155,740 8,768,596 (6,284,769) (4,263,034) (622,562) (2,755,830) (14,176,227) (7,869,560) 362,823 433,002 849 75,310 901,800 868,957 (2,268~805) (27,433) (621,713) (980,520) (4,118,687) 1,767,993 (2,953,036) (90,777) (393,700) (823,724) (6,971,875) 6,288,561 2,953,036 90,777 393,700 823,724 6,971,875 683,314 ~i- $ $ - $ $ $ 6,97t,875 420,390 $ 86,577 $ 192,226 $ (630,359) $ (948,734) $ 1,838,263 2,516,528 11,995 530,463 3,103,761 2,689,069 - - (32,590) - - 14,069 - (3,431) 26,316 9,937 121,461 - 3,697,340 3,978,481 (3,648,680) - (521,168) (415,896) - (5,103) 30,256 39,407 - (569,399) 35,919 (16,168) (149,795) (3,039,713) 1,618,801 (34,248) 83,327 3,082 32,983 108,144 74,577 - (254) (1,569,879) 1,528,872 1,317,319 - (33,028) (33,028) (336,134) 2,034,342 95,184 (1,345) 2,567,937 5,158,482 1,308,993 2,45~732 ~ t81,761 ~ 190,881 $1,937,578 $ 4,209,748 $ 3,147,256 * 93 - Comprehenmve Annual F,nanclal Report CITY OF DENTON, TEXAS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS (DEFICIT) - BUDGET AND ACTUAL - (BUDGET BASIS) - MATERIALS MANAGEMENT, FLEET SERVICES, MOTOR POOL, COMMUNICATIONS, AND TECHNOLOGY SERVICES FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Matenals Manai~ement Fleet Serwces Variance Variance Favorable Favorable Bud~let Actual (Unfavorable) Budget Actual (Unfavorable) OPERATING REVENUES Charges for goods and serwces $6 508 800 $5 726 220 $(782 580) $2 546 923 $2 496 612 $(50 311 ) M,scellaneous 6 6 Total Operatmg Revenues 6 508 800 5 726 226 {782 574) 2 546 923 2 496 612 {50 311) OPERATING EXPENSES Salanes and wages 447 116 453 091 (5 975) 780 295 717 965 62 330 Materials and supphes 5 777 937 5 479 607 298 330 I 648 270 1 657 274 {9 004) Maintenance and repairs 19 668 11 946 7 722 16 730 18 827 (2 097) M~scellaneous 259 001 188 574 70 427 11,550 100 602 {89 052) Cap~tal outlay 162 655 120 224 42,431 37 000 28 446 8 554 Total Operating Expenses 6 666 377 6 253 442 412 935 2 493 845 2 523 114 (29 269) Operating Income (Loss) (157 577) (527 216) (389,639) 53 078 (26 502) (79 580) NONOPERATING REVENUES (EXPENSES) Investment revenue - 29 816 29 816 interest expense and fiscal charges - (161 403) (161 956) (553) Other - _ _ Total Nonoperating Revenues {Expenaea) - (16t 403) (132 140) 29 263 Income (Losa) Before Operating Transfers (157 577) (527 216) (369 639) (108 325) (158 642) (50 317) OPERATING TRANSFERS IN (OUT) Operating transfer m - 128 945 128 945 Operating transfer out - (17 850) (17 850) Total Operating Transfers In lOut) - 111 095 111 095 Net Income (Loss) (157 577) (527 216) (369 639) 2 770 (47 547) (50 317) RETAINED EARNINGS - October I 1 070 400 1 070 400 440 243 440 243 RETAINED EARNINGS (DEFICIT) - September 30 (Budget Basis) 912 823 543 184 (369 639) 443 013 392 696 150 317) ENCUMBRANCES AND CAPITAL OUTLAYS NET OF DEPRECIATION )NCLUDED ABOVE (325 785) (325 785) {138 121) (136 121) RETAINED EARNINGS - September 30 IGAAP BASIS) $ 587 038 $ 217 399 $~369 639) ,,$ 306 892 $ 256.575 ${50,317) - 94 - Comprehensive Annual Financml Report CITY OF DENTON, TEXAS Motor Pool Commumcat~ons Technology Services Vanence Vanance Variance Favorable Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) Budget Actual (Unfavorablel $ 3513907 $ 2937407 $(576500) $689725 $691956 $ 2231 $3522879 $3612968 $ 90089 8 oqo (8,ooo) - 3 521 907 2 937 407 (584 500) 689 725 691 956 2 231 3 522 879 3 612 968 90 089 - 238 892 215 030 23 862 1 509 474 1 462 355 47 119 198 (198) 69 805 49 032 20 773 92 368 88 485 3 883 30 960 6 297 24 663 350 033 501 162 (151 129) 269,437 233 399 36 038 1 794 343 1 600 788 193 555 2 120 203 2 484 804 (364 601) 30,000 15 029 14,971 26 661 44 043 (17 382) 2 120 203 2,485~002 {364 799) 639 094 518 787 120 307 3 772 879 3 696 833 76 046 1 401 704 452~405 {949 299) 50,631 173 169 122 538 (250~000) {83 865) 166 135 300 000 408 744 108 744 849 849 - 75 310 75 310 {135 022) (142,285) {7,263) (48 501} (48 643) {142) - (16,719i {16 719) - 801409 801409 - 164 978 346 868 181 890 (48 501) {47 794) 707 - 58 591 58 591 1 586 61~2 799 273 {767 409) 2 130 125 375 123 245 {250 0001 {25 274! 224 726 (401 491) {163 810) 237 681 - (401 491) {163 810) 237 681 - 1 165 191 635 463 {529 728) 2 130 125 375 123 245 (250 000) {25 274) 224 726 12,012,510 12,012,610 {29,331) (29 331) - 1 058004 I 058,004 13 177 701 12 647 973 (529 728) (27 201) 96 044 123 245 808 004 t 032 730 224 72§ 327 866 327 666 38 318 38 318 (516 2371 (516 237) - $13,505~3~7 $12,975639 $(529,728),, ~ 11,117 $134,382 $123245 $ 291,767 $ 516,493 $ 224,726 -95- Comprehensive Annual Financial Report CITY OF DENTON, TEXAS of Comprehensive Annual F,nanclal Report CITY OF DENTON, TEXAS SUMMARY OF TRUST AND AGENCY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 EXPENDABLE TRUST FUNDS Miscellaneous - to account for several small trust funds which are vaned ,n purpose A GENC Y FUNDS Payroll - to account for the collection and payment of the C~ty's payroll and assocmted I~ab~ht~es Other - to account for m~scellaneous C~ty employee funds - 97 - Comprehensive Annual F~nancial Report CITY OF DENTON, TEXAS COMBINING BALANCE SHEET - ALL TRUST AND AGENCY FUNDS SEPTEMBER 30 2000 Expendable ASSETS Trust Fund A~ienc¥ Funds Cash and deposits $ 291,093 $792,721 Investments 937,539 Due from other funds 6,464 10,005 Other receivables 3,675 7,639 Total Assets $1,238,771 $810,365 LIABILITIES AND FUND BALANCE Accounts payable $ 58,380 $810,365 Due to other funds 4,364 - Total L~ab~ht~es 62,744 810,365 Fund balance 1,176,027 - Total Liabihties and Fund Balance $1,238,771 $810,365 - 98- Comprehens,ve Annual Financ~al Report CITY OF DENTON, TEXAS Totals September 30, 2000 September 30, 1999 $1,083,814 9812,224 937,539 - 16,469 9,681 11,314 2,394 $2 049~136 ,, ,,, $824,29,8. , 9868,745 9169,717 4,364 - 873,109 169,717 1,176,027 654,582 $2,049,136 $824,299 - 99 Comprehensive Annual Financial Report CITY OF DENTON, TEXAS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - ALI. AGENCY FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Balance September 30, 1999 PA YROLI FUND ASSETS Cash and deposits $21,838 Other receivables 7,639 Due from other funds 8 Total Assets $29,485 LIABILITIES Accounts payable $29,485 Due to other funds _ Total Llabd~ties $29,485 .. Al.l- OTHER AGENCY FUNDS ASSETS Cash and deposits $31,276 Total Assets $ 31,276 LIABILITIES Accounts payable - due to employees $31,276 Total Llabiht~es $31,276 TOTAl. AGENCY FUNDS ASSETS Cash and deposits $53,114 Other receivables 7,639 Due from other funds 8 Total Assets $60,761 LIABILITIES Accounts payable $60,761 Total Llabihtles $60,76! - 100- Comprehens;ve Annual F~nanc~al Report CITY OF DENTON, TEXAS Balance Add~tmns Deductions September 30, 2000 $79,045,975 878,306,478 9761,335 - - 7,639 10,005 8 10,005 $79,Q~5,~,8~ ,,,, ..... ~,78,306,486 $778,979 929,522,035 $28,772,541 9778,979 $29 522,035 ,,~28,~72,5~,,,, ,,,,,,,,, ..... ~778,979 110 $ $ 31,386 110 ~ - $ 31,386 110 9 $ 31,386 110 ~ - $ 31,386 979,046,085 $78,306,478 9792,721 - 7,639 9,997 10,005 ~79,0~8,082 $78,306,478 ~810,365 ~29,522,145 928,772,541 ~810,365 ~29,5~2 145 $8t0,365 - 101 Comprehensive Annual Flnanc,al Report CITY OF DENTON, TEXAS of - 102- Comprehens,ve Annual F~nanclal Report Supplemental Financial Information CITY OF DENTON, TEXAS GENERAL FUND SUPPLEMENTAL INFORMATION SCHEDULE OF EXPENDITURES BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 - 103 Comprehensive Annual FInancml Report CITY OF DENTON, TEXAS GENERAL FUND - SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED SEPTEMBER 30 2000 Variance Actual Actual Favorable Budget Expenditures Encumbrances (Unfavorable) GENERAl GOVERNMENT Adm~mstrat~on (0000) Personal Services $ 509,282 $ 509,292 Supphes 35,347 30,049 1,656 3,642 Maintenance 1,450 1,027 - 423 Serwces 95,385 90,221 2,969 2,195 Sundry 41,300 36,464 1,643 3,193 682,764 667,043 6,268 9,453 Pubhc Information (0001) Personal Serwces 53,104 53,067 37 Supphes 1,850 1,650 200 Serwces 18,992 17,762 465 765 73,946 72,479 465 1,002 Cable TV (0003) Personal Serwces 36,833 36,833 - Supphes 1,862 1,372 471 19 Maintenance 15,006 5,012 9,994 - Serwces 3,480 3,391 59 30 Sundry 430 423 7 57,611 47,031 10,524 56 Internal Audit (0027) Personal Serwces 60,482 60,482 - - Supphes 1,934 1,129 750 55 Serwces 6,840 6,817 - 23 69,256 68,428 750 78 Fac~ht~es Management (0002) Personal Services 591,210 591,210 - Supphes 40,558 20,867 19,691 Maintenance 237,741 224,555 13,181 5 Serwces 868,694 782,722 44,688 41,284 Sundry 1,317 1,105 - 212 1,739,520 1,620,459 77,560 41,501 - 104 - Comprehensive Annual Flnancml Report CITY OF DENTON, TEXAS GENERAL FUND - SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) FOR THE ,FISCAL YEAR ENDED SEPTEMBER 30, 2000 Variance Actual Actual Favorable Budget Expendttures Encumbrances (Unfavorable) Human Resources (0008) Personal Serwces $ 563,352 $ 563,352 $ $ - Supphes 32,768 30,039 1,000 1,729 Maintenance 1,991 651 376 964 Serwces 114,779 98,314 6,969 9,496 Sundry 15,771 14,598 540 633 728,661 706,954 8,885 12,822 Legal Adm~nistration (0004) Personal Serwces 752,587 752,587 - Supphes 11,000 10,015 125 860 Maintenance 1,000 272 728 Serwces 72,576 72,576 - Sundry 802 62 740 837,965 835,512 125 2,328 Mummpel Court Judge (0005i Personal Serwces 193,579 193,579 - Supphes 3,060 1,956 1,104 Maintenance 400 - 400 Serwces 16,056 8,644 7,412 213,095 204,179 8,916 Mummpal Serwces (0009) Personal Serwces 258,586 258,586 - Supphes 7,742 7,693 49 - Maintenance 270 264 6 Serwces 52,445 50,943 1,497 5 Sundry 700 591 32 77 319,743 318,077 1,578 88 L~brary Adm~mstrat~on {0070) Personal Serwces 256,136 256,136 - Supphes 17,365 16,862 313 190 Maintenance 32,271 32,150 74 47 Servmes 65,628 65,349 279 371,400 370,497 666 237 - 105- Comprehensive Annual Financ,al Report CITY OF DENTON, TEXAS GENERAL FUND - SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAl (Continued) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Variance Actual Actual Favorable Budget Expenditures Encumbrances (Unfavorable) L~brar¥ C~rculat~on Serwces (0071) Personal Serwces $ 229,450 $ 229,450 $ $ - Supphes 4,676 4,617 45 14 234,126 234,067 45 14 L~brar¥ Support Serwces (0072) Personal Serwces 151,038 151,023 - 15 Supphes 8,750 5,974 2,762 14 Maintenance 2,000 286 1,714 - 161,788 157,283 4,476 29 L~brary Adult Serwces (0073) Personal Services 367,896 367,736 - 160 Supphes 8,200 8,014 - 186 Serwces 1,200 810 - 390 377,296 376,560 - 736 L~brary Children Serwces (0074) Personal Serwces 261,902 261,902 - Supphes 2,300 1,812 205 283 Serwces 2,600 2,600 - 266,802 266,314 205 283 South Branch L~brary {0075) Personal Serwces 279,007 279,007 - Supphes 6,999 6,668 52 279 Maintenance 427 427 - Serwces 28,272 28,272 314,705 314,374 52 279 F~nance Adm~mstrat~on (0020) Personal Serwces 186,477 186,477 Supphes 9,013 8,565 448 Serwces 19,140 19,054 86 214,630 214,096 534 - 106- Comprehensive Annual Financial Report CITY OF DENTON, TEXAS GENERAL FUND - SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Varmnce Actual Actual Favorable Budget Expenditures Encumbrances (Unfavorable) Treasury (0023) Personal Serwces $ 216,222 $ 216,222 $ - $ - Supphes 2,825 2,825 - - Serwces 18,720 18,597 123 - 237,767 237,644 123 - Accounting {0024) Personal Serwces 788,120 788,120 - Supphes 23,388 23,388 - Mmntenance 171 171 - Servmes 30, 321 30,162 159 - 842,000 841,841 159 - Tax (0025) Personal Servmes 100,185 100,185 - Supphes 11,300 11,247 41 12 Serwces 6,649 6,621 28 - 118,134 118,053 69 12 Mummpal Court (0026) Personal Serwces 519,849 519,849 Supplies 34,929 34,104 825 Serwces 24,227 22,192 2,004 31 579,005 576,145 2,829 31 Budget (0028) Personal Serwces 258,102 258,102 - Supplies 4,225 4,225 - Serwces 27,646 23,016 4,620 10 289,973 285,343 4,620 10 Risk Management (0029) Personal Services 235,040 235,040 - Supphes 9,003 6,597 2,368 38 Maintenance 250 - 250 Serwces 59,336 34,813 23,531 992 303,629 276,450 25,899 1,280 - 107 Comprehensive Annual F|nancml Report CITY OF DENTON, TEXAS GENERAL FUND - SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Variance Actual Actual Favorable Budget Expenditures Encumbrances (Unfavorable) Finance Administration M~sc (02OM) Personal Serwces $ 93,622 $ 93,622 $ $ - Supplms 2,398 2,398 - Serwces 341,862 196,881 142,361 2,620 Administrative Transfer 2,525,018 2,525,018 - Sundry 799,152 684,776 47,299 67,077 3,762,052 3,502,695 189,660 69,697 Planmng and Development (0015) Personal Serwces 931,925 931,925 - - Supphes 36,670 34,956 - 1,714 Maintenance 100 100 - - Serwces 90,829 89,006 583 1,240 Sundry 26,500 22,644 - 3,856 1,086,024 1,078,631 583 6,810 Planmng and Development Misc (015M) Sundry 311,744 288,091 6,735 16,918 311,744 288,091 6,735 16,918 Ma~n Street Program (0016) Personal Serwces 137,274 137,274 - Supphes 4,428 4,338 - 90 Serwces 38,564 38,114 450 Sundry 3,216 500 2,716 183,482 180,226 450 2,806 Code Enforcement (0018) Personal Serwces 260,937 260,937 - Supphes 11,732 10,996 736 - Maintenance 1,719 1,478 241 Serwces 38,772 30,784 7,785 203 313,160 304,195 8,521 444 Proprietary Funds Reimbursement {4,242,463) (4,210,956) (31,507) Total General Government $10,447,815 ,,$ 9,9,~1,711 $,,,,,351,~247 ,,, ~ , 144,857 - 108 Comprehensive Annual Financial Report CITY OF DENTON, TEXAS GENERAL FUND - SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Va.ance Actual Actual Favorable Budget Expenditures Encumbrances (Unfavorable) PUBLIC SAFETY Pohce (0040) Personal Serwces $ 9,504,277 $ 9,504,277 $ $ - Supphes 304,198 302,260 1,938 - Maintenance 97,735 95,271 2,181 283 Serwces 892,459 878,618 12,935 906 Sundry 344,045 344,045 11,142,714 11,124,471 17,054 1,189 F~re Adm~mstrat~on (0050) Personal Serwces 888,911 888,911 Supphes 13,820 13,620 200 Maintenance 3,752 3,708 44 Services 129,215 126,934 1,578 703 Sundry 1,500 1,319 106 75 1,037,198 1,034,492 1,884 822 F~re Operations (0051) Personal Serwces 7,325,570 7,325,570 - Supphes 162,389 130,350 32,039 Maintenance 31,116 27,069 4,003 44 Serwces 574,243 570,991 3,235 17 Sundry 2,200 2,070 58 72 8,095,518 8,056,050 39,335 133 F~re Prevention (0052) Personal Services 351,519 351,519 - Supphes 21,222 20,423 769 30 Maintenanoe 3,589 3,589 - Serwces 47,224 46,184 1,040 - Sundry 200 168 - 32 423,754 421,883 1,809 62 - 109 - Comprehensive Annual Financial Report CITY OF DENTON, TEXAS GENERAL FUND - SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Variance Actual Actual Favorable Budget Expenditures Encumbrances (Unfavorable) Emergency Medmal Serwces (0053) Personal Services $ 147,660 $ 147,660 $ - 9 - Supphes 132,410 130,259 2,151 - Maintenance 20,776 19,103 1,673 - Serwces 248,911 247,192 1,719 Sundry 135 104 - 31 549,892 544,318 5,543 31 Total Pubhc Safety 921,249,076 921,181,214 9 65,825 $ 2,237 PUBLIC WORKS Eng~neenng (0010) Personal Serwces 9 1,489,774 9 1,489,774 9 9 Supphes 30,186 30,087 99 Maintenance 11,740 10,490 1,017 233 Serwces 55,627 53,859 20 1,748 1,587,327 1,584,210 1,136 1,981 Transportation Engineering (0012) Personal Serwces 377,435 376,237 1,198 Supphes 20,464 20,005 459 - Maintenance 139,825 116,119 23,706 - Serwces 65,917 53,836 11,681 400 603,641 566,197 35,846 1,598 A~rport (0019) Personal Serwces 155,536 155,536 - - Supphes 4,255 3,439 30 786 Maintenance 3,891 2,040 1,391 460 Serwces 22,154 20,370 778 1,006 Sundry 34,984 34,984 - 220,820 216,369 2,199 2,252 -110- Comprehensive Annual Financial Report CITY OF DENTON, TEXAS GENERAL FUND - SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Continued) FOR THE FISCAl. YEAR ENDED SEPTEMBER 30, 2000 Variance Actual Actual Favorable Budget Expenditures Encumbrances (Unfavorable) Street Patching (0031) Persona( Serwces $ 777,697 $ 777,697 $ $ - Supphes 65,309 63,940 1,369 - Maintenance 962,167 896,157 66,010 - Services 311,139 275,174 35,965 - 2,116,312 2,012,968 103,344 Pubhc Transportation (0032) Personal Serwces 57,015 57,015 Supphes 1,103 1,103 Serwces 2,112 1,887 225 60,230 60,005 225 Street L~ghtmg (0034) Serwces 443,500 443,437 - 63 443,500 443,437 - 63 Ammal Control (0039) Personal Serwces 272,202 272,202 - Supphes 24,121 23,686 435 Maintenance 2,883 2,807 63 13 Services 59,472 59,329 - 143 358,678 358,024 498 156 Total PubhcWorks $ 5,390,508 $ 5,241,2t0 $ 143,023 $ 6,275 -111 - Comprehensive Annual Financml Report CITY OF DENTON, TEXAS GENERAL FUND - SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL (Concluded) FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2000 Variance Actual Actual Favorable Budget Expenditures Encumbrances (Unfavorable) PARKS & RECREATION Parks & Recreation Admm (0060) Personal Serwces $ 467,860 $ 467,860 $ $ - Supphes 12,431 12,224 207 - Maintenance 325 143 182 Serwces 77,067 72,721 2,163 2,183 Sundry 627 627 - 558,310 553,575 2,370 2,365 Recreation (0062) Personal Serwces 1,249,498 1,249,498 - - Supphes 76,386 74,137 1,477 772 Maintenance 17,173 15,087 1,242 844 Services 259,185 258,116 1,055 14 1,602,242 1,596,838 3,774 1,630 Park Maintenance (0063) Personal Serwces 1,385,681 1,385,681 - Supphes 125,020 119,888 5,132 Maintenance 136,309 123,418 12,891 Serwces 535,732 509,514 26,218 2,182,742 2,138,501 44,241 Total Parks & Recreation $ 4,343,294 $ 4,288,914 $ 50,385 $ 3,995 Capital Outlay $ 455,120 $ 309,084 $ $ 146,036 GRAND TOTAL GENERAL FUND 841,885,813 $40,972,133 $ 610,280 $ 303,400 - 112- Comprehensive Annual F~nanclal Report CITY OF DENTON, TEXAS STATISTICAL SECTION (UNAUDITED) - 113- Compreheneive Annual FInanc,al Report CITY OF DENTON, TEXAS GENERAL GOVERNMENT EXPENDITURES BY FUNCTION (1) LAST TEN FISCAL YEARS F~scal General Pubhc Pubhc Year Government Safety Works 1991 $ 9,867,659 $10,982,759 $4,612,406 1992 10,578,876 11,497,189 4,516,066 1993 10,733,969 11,657,809 4,722,845 1994 8,773,398 11,917,580 4,123,527 1995 10,074,911 12,604,527 4,374,433 1996 11,610,932 13,951,797 4,396,384 1997 11,989,015 15,379,257 5,040,465 1998 13,265,277 16,756,551 5,447,174 1999 11,619,718 19,060,713 5,098,539 2000 14,533,483 22,679,278 4,888,271 (1) Includes General, Special Revenue, and Debt Serwce Funds -114 Comprehensive Annual Financial Report CITY OF DENTON, TEXAS Table I Parks and Capital Debt Recreation Outlay Serwce Total $2,648,067 $ 234,782 $4,819,773 $33,165,446 2,814,573 486,650 4,416,269 34,309,623 2,750,189 428,228 4,509,919 34,802,959 2,868,169 546,183 4,812,285 33,041,142 3,017,813 1,123,650 4,586,888 35,782,222 3,344,822 1,069,359 4,960,963 39,334,257 3,897,577 1,187,669 4,906,023 42,200,006 3,989,773 2,717,163 4,729,432 46,905,370 4,413,869 1,469,975 6,337,757 48,000,571 5,341,227 682,836 6,886,901 55,011,996 - 115 Comprehensive Annual F;nanclal Report CITY OF DENTON, TEXAS GENERAL REVENUES BY SOURCE (1) LAST TEN FISCAL YEARS L~censes Fines Fiscal and Franchise and Year Taxes Permits Fees Forfeitures 1991 $19,756,479 $243 070 $ 614,940 $ 985,532 1992 19,790,132 293 621 750,487 1,037,717 1993 20,932,369 358 519 722,881 1,313,157 1994 21,756,706 418 693 5,219,164 1,195,427 1995 22,099,226 388 274 6,112,849 1,552,840 1996 22,583,299 572 676 6,067,244 1,574,050 1997 24,571,249 521 642 6,592,694 1,849,082 1998 25,931,946 708 607 9,107,182 2,257,015 1999 27,359,533 373 979 9,283,328 2,855,899 2000 30,114,965 441 831 9,958,500 2,680,352 (1) Includes General, Special Revenue and Debt Serwce Funds - 116 Comprehensive Annual Financial Report CITY OF DENTON, TEXAS Table 2 Inter Fees for Investment Governmental M~scellaneous Services Revenue Revenue Revenue Total 1,287,836 $ 643 722 $1,244,634 $ 996,253 $25,772,466 1,405,187 588 152 1,371,442 771,836 26,008,574 1,433,520 601 958 2,100,947 1,097,775 28,561,126 1,578,773 428 163 1,834,115 1,006,993 33,440,034 1,747,664 737 282 2,779,956 1,295,034 36,713,125 1,848,307 813 429 3,375,210 2,332,969 39,167,184 2,101,049 744 612 3,273,874 1,102,438 40,756,640 2,187,136 839 776 3,844,399 1,502,480 46,378,541 2,512,669 813 109 4,913,341 1,133,051 49,244,909 3,359,523 1,060,264 4,805,302 1,788,797 54,209,534 - 117 - Comprehensive Annual Flnancml Report CITY OF DENTON, TEXAS PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Fiscal Total Current Tax Percent of Levy Dehnquent Tax Year Tax Levy (1) Collections Collectmn Collections 1991 ~13,718,332 $13,343,005 97 26% $203,887 1992 13,496,916 13,188,356 97 71 301,984 1993 13 732,609 13 451,202 97 95 340,382 1994 14,023,943 13,813,825 98 50 194,761 1995 11,080,169 10,930,077 98 65 172,279 1996 11,076,657 10,953,056 98 88 224,806 1997 11,465,710 11,316,204 98 70 160,366 1998 11,940,387 11 768,088 98 56 164,847 1999 12,272,839 12,076,449 98 40 191,849 2000 13,777,583 13,604,779 98 75 199,011 (1) Denton Central Appraisal D~stnct ~liS- Comprehensive Annual Financial Report CiTY OF DENTON, TEXAS Table 3 Outstandmg Total Collections as Dehnquent Taxes Total Tax a Percent of Outstanding as a Percent of Cqllect~on Current Levy Delinquent Taxes Current Levy $13,546,892 98 75% $1,610,563 11 74% 13,490,340 99 95 838 015 6 21 13,791,584 100 43 942 322 6 86 14,008,586 99 90 912 342 6 51 11,102,356 100 21 846 352 7 64 11,177,862 100 91 722 256 6 52 11,476,570 100 10 723 408 6 31 11,932,935 99 94 692 946 5 81 12,268,298 99 96 735 160 5 99 13,803,790 100 19 491 069 3 56 -119- Comprehensive Annual Financial Report CITY OF DENTON, TEXAS ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Real Property Personal Property F~scal Assessed Estimated Actual Assessed Estimated Actual Year Value Value Value Value 1991 $1,691,271,530 $1,739,004,107 $345,331,755 $355,078,017 1992 1,630,243,615 1,645,917,473 321,060,875 324,147,691 1993 1,559,265,581 1,576,490,494 332,456,607 336,129,192 1994 1,533,929,030 1,546,725,334 325,667,239 328,384,012 1995 1,598,557,980 1,625,199,300 344,486,297 350,227,452 1996 1,649,535,236 1,672,452,635 370,223,523 375,367,130 1997 1,720,506,423 1,764,897,930 394,807,571 404,994,167 1998 1,869,034,612 1,903,853,579 415,092,754 423,026,865 1999 1,989,440,482 2,017,449,788 358,758,416 438,471,342 2000 2,199,215,704 2,365,588,174 450,904,790 560,228,151 Information prowded by the Denton Central Appraisal D~str~ct Certified Appraisal Roll - 120- Comprehensive Annual F~nanclal Report CITY OF DENTON, TEXAS Table 4 Total Estimated Assessed Ratio of Total Taxable Value Assessed to Total Value hnclud~n~l exem@t~ons) Estimated Actual $2,036,603,285 $2,094,082,124 102 82 % 1,951,304,490 1,970,065,164 100 96 1,891,722,188 1,912,619,686 101 10 1,859,596,269 1,875,109,346 100 83 1,943,044,277 1,975,426,752 101 67 2,019,758,759 2,047,819,765 101 39 2,115,313,994 2,169,892,097 102 58 2,284,127,366 2,326,880,444 101 88 2,348,198,898 2,455,921,130 104 59 2,650,120,494 2,925,816,325 110 40 - 121 - Comprehensive Annual Financ~al Report CITY OF DENTON, TEXAS Table 5 PROPERTY TAX RATES AND TAX LEVIES DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS TAX RATES(Per$100 of Assessed Valuation) F~scal School Year C~ty D~stnct County Total 1991 0 6551 1 228 2647 2 14780 1992 0 6851 1 380 2844 2 34950 1993 0 7180 1 470 2924 2 48040 1994 0 7479 1 560 2994 2 60730 1995 0 5609 1 5277 2899 2 37850 1996 0 5409 1 5520 2784 2 37130 1997 0 5284 1 6607 2669 2 45600 1998 0 51315 1 8500 24875 2 61190 1999 0 50815 1 7000 23504 2 44319 2000 0 50815 1 8440 23193 2 44008 TAX LEVIES * F~scal School Year C~ty D~stnct County Total 1991 $13,718,332 $28,076,876 $27,913,048 $ 69,708,256 1992 13,496,916 29,877,615 27,910,955 71,285,486 1993 13,732,609 33,284,405 29,914,154 76,931,168 1994 14,023,943 33,552,757 32,154,363 79,731,063 1995 11,080,169 32,853,831 31,134,101 75,068,101 1996 11,076,657 38,890,687 33,975,873 83,943,217 1997 11,465,710 43,419,520 36,028,376 90,913,606 1998 11,940,387 47,370,971 38,105,447 97,416,805 1999 12,272,839 49,856,888 39,938,121 102,067,848 2000 13,777,583 56,386,461 52,655,777 122,819,821 of Denton and Denton County Tax offices Values as of September 30 - 122- Comprehensive Annual F~nanclal Report CITY OF DENTON, TEXAS Table 6 SPECIAL ASSESSMENT COLLECTIONS LAST TEN FISCAL YEARS Total Dehnquent Outstanding Current Current Ratio of Assessments Current and F~scal Assessment Assessments Collections to Collections Dehnquent Year Due Collected Amount Due Adjustments Assessments 1991 - - $48,246 $41,471 1992 - - 1,370 40,101 1993 - - 33,072 7,029 1994 - - - 2,421 4,608 1995 - - - 3,530 1,078 1996 - - - 1,078 1997 .... 1998 - - 1999 - - 2000 - - - 123- Comprehensive Annual F,nanc,al Report CITY OF DENTON, TEXAS RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA LAST TEN FISCAL YEARS Ending Rscal Assessed Value Gross Year Population (~n thousands) Bonded Debt 1991 66,470 $2,094,082 $28,131,359 1992 66,902 1,970,065 28,773,509 1993 67,422 1,912,519 30,97%049 1994 68,650 1,875,109 33,240,605 1995 69,550 1,975,426 33,152,498 1996 70,450 2,047,819 36,684,478 1997 71,450 2,169,892 37,000,813 1998 73,050 2,326,880 48,083,020 1999 75,300 2,455,921 57,230,934 2000 79,250 2,711,777 59,296,353 (1) Excludes general obhgat~on bonds pledged by sohd waste revenues - 124- Comprehensive Annual Financ~al Report CITY OF DENTON, TEXAS Table 7 Ratio of Net Less Debt Serwce Net Bonded Bonded Debt to Net bonded Debt Funds Debt Assessed Value Per Capita $ 309,526 $27,821,833 1 33 $419 344,335 28,429,174 1 44 425 322,844 30,648,205 1 60 455 322,763 32,917,842 1 76 480 704,904 32,447,594 1 64 467 682,167 36,002,311 1 76 511 504,760 36,496,053 1 68 511 1,O61,887 47,021,133 2 02 644 1,131,067 56,099,867 2 28 745 822,913 58,473,440 2 16 738 - 125 Compreheneive Annual F,nancml Report CITY OF DENTON, TEXAS Table 8 COMPUTATION OF LEGAL DEBT MARGIN SEPTEMBER 30, 2000 Net Assessed Value 82,711,362,015 Plus Exempt Property Totals 214,454,310 Total Assessed Value $ 2,925,816,325 Debt L~m~t - No debt hm~t ~s mandated by law but the C~ty does recogmze s~x percent as an economic hm~tat~on $ 175,548,980 Amount of debt apphcable to debt hm~t - Total general obhgat~on bonded debt $ 40,105,923 Less general obhgat~on bonds pledged by Sohd Waste revenues (1,690,569) Certificates of obhgat,on 20,881,000 59,296,354 Less - Amount ~n debt serwce fund avadable for payment of principal 822,913 Total Amount of Debt Apphcable to Debt L~m~t 58,473,441 Debt Margin $ 117,075,539 - 126- Comprehensive Annual FInancial Report CITY OF DENTON, TEXAS Table 9 COMPUTATION OF DIRECT AND OVERLAPPING DEBT SEPTEMBER 30, 2000 Percentage Amount Net Debt Apphcable to the Apphcable to Jur~sd~ction Outstanding C~ty of Denton (1) C~t¥ of Denton Denton Independent School D~str~ct $179,305,604 88 04% $157,860,654 Denton County 106,099,925 12 84 13,623,230 Total Overlapping Debt 171,483,884 C~ty of Denton 60,986,922 100 O0 60,986,922 Total D~rect and Overlapping Debt $232,470,806 (1) Based on the relative assessed values wtth~n the C~ty of Denton - 127 Comprehenelve Annual Financial Report CITY OF DENTON, TEXAS Table 10 RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES (1) LAST TEN FISCAL YEARS Ratio of Debt Service F~scal Interest and Total Total Expenditures Year Principal Fmcal char~es Debt Serwce Expenditures (percent) 1991 $2,714,668 $2,105,105 $4,819,773 $33,165,466 14 53% 1992 2,567,167 1,849,102 4,416,269 34,309,623 12 87 1993 2,546,058 1,963,861 4,509,919 34,802,959 12 96 1994 3,057,565 1,754,720 4,812,285 35,968,218 13 37 1995 3,095,856 1,491,032 4,586,888 35,782,222 12 82 1996 3,549,515 1,411,448 4,960,963 39,334,257 12 61 1997 3,532,417 1,373,606 4,906,023 42,200,006 11 63 1998 3,230,865 1,498,567 4,729,432 46,905,370 10 08 1999 3,797,814 1,754,249 5,552,063 48,000,571 11 57 2000 2,751,282 2,686,690 5,437,972 55,011,996 9 89 (1) Includes General, Special Revenue and Debt Serwce - 128- Comprehensive Annual F~nancial Report CITY OF DENTON, TEXAS - 129- Comprehensive Annual F,nanc~al Report CITY OF DENTON, TEXAS REVENUE BOND DEBT SERVICE COVERAGE LAST TEN FISCAL YEARS Net Revenue F~scal Operating D~rect Operating Avadable for Debt Year Revenue Expenses (1) Serwce Utd~ty System 1991 $ 84,572,722 $56,731,232 $27,841,490 1992 86,646,335 60,613,282 26,033,053 1993 89,493,275 63,733,847 25,759,428 1994 96,572,936 64,658,746 31,914,190 1995 95,045,662 66,903,767 28,141,895 1996 100,453,467 69,004,130 31,449,337 1997 102,614,300 66,338,364 36,275,936 1998 111,476,726 73,983,381 37,493,345 1999 114,946,834 79,405,565 35,541,269 2000 123,813,370 90,647,158 33,166,212 (1) Excluding Deprec,atmn 130 - Comprehensive Annual Fmancml Report CiTY OF DENTON, TEXAS Table 1 1 Debt Serwce Requirements P,rinclpal Interest Total Coverage $2;900,000 $4,545,856 $ 7,445,856 3 74 3;505,000 4,250,138 7,755,138 3 36 3~535,000 4,305,073 7,840,073 3 29 4,015,000 3,577,695 7,592,695 4 20 4,295,000 3,249,141 7,544,141 3 73 4~385,000 2,952,911 7,337,911 4 29 5J380,000 5,280,014 10,660,014 3 40 5J380,O00 4,718,328 10,098,328 3 71 5~035,000 6,329,558 11,364,558 3 13 4~620,000 6,245,271 10,865,271 3 05 - 131 Comprehensive Annual F~nanclal Report CITY OF DENTON, TEXAS PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS Commercial Construction(I) F~scal Property Value Number Year (~n thousands) of Umts Value 1991 $2,094,082 70 $ 6,149,572 1992 1,970,065 182 40,336,281 1993 1,912,619 211 30,820,964 1994 1,875,109 189 30,316,353 1995 1,975,426 179 14,560,423 1996 2,047,819 199 58,729,540 1997 2,169 892 167 41,085,727 1998 2,326,880 109 60,407,564 1999 2,455,921 34 27,132,960 2000 2,711,322 39 17,646,643 (1) C~ty of Denton Planmng and Development Department Estimate (2) Denton Chamber of Commerce Estimate through 1994 Bank Statement of Condition 1995 99 FDIC Summary of Deposits 2000 as of June 30 (3) Bank deposits for Bank One of Texas not available at t~me of pubhcat~on (4) Bank deposits for Norwest Bank and Nat~onsBank not avadable due to merger (5) Bank deposits for Norwest Bank not available due to merger Deposits included for Nat~onsBank as of 6/30/98 Deposits for F~rst State Bank included all branches (6) Bank deposits for Bank of America not available at t~me of pubhcat~on - 132 Comprehens,ve Annual Financ,al Report CITY OF DENTON, TEXAS Table 12 Residential Construction (1) Rank Number Deposits (2) of Umts Value (~n thousands) 167 $ 12,414,459 $ 565 630 189 22,197,221 663 882 311 28,285,720 671 821 398 33,793,717 619 211 {3) 492 36,330,817 728 100 (3) 460 35,586,747 843 527 (3) 784 50,384,468 1,314,771 (4) 1,060 85,752,929 1,269,302 (5) 1,520 161,641,558 846,667 (6) 1,360 166,783,910 997,670 - 133 Comprehensive Annual F~nancial Report CITY OF DENTON, TEXAS of - 134 Comprehensive Annual Financial Report CITY OF DENTON, TEXAS Table 13 PRINCIPAL TAXPAYERS SEPTEMBER 30, 2000 Percentage of 1999 Total Taxable Taxable Assessed Assessed Name of Taxpayer K~nd of Property Valuation (1) Valuation Denton Regional Medical Center/ Hospital and $ 56,007,908 2 11% Columbia Medical Center/ Professional Building EPIC Dev / Epm Prop General Telephone Telephone Ut~hty 46,254,880 1 75% Peterbilt Motors Dmsel Trucks 44,506,051 1 68% Umted Copper Copper W~re Plant 30,897,563 1 17% Tetra Pek Packaging Manufactu.ng 30,817,528 1 16% Wal-Mart Supercenter D~scount Store 19,537,944 0 74% Anderson Merchandisers D~stnbut~on Center 19,144,148 0 72% Music and Books Golden Triangle Mall Shopping Mall 17,167,232 0 65% International Isotopes, Inc Rad~o-~sotopes 16,416,693 0 62% Manufacturing Sally's Beauty Supply D~stnbut~on Center 14,022,213 0 53% Beauty Supphes $294,772,160 11 12% NoteTotal assessed valuation as of September 30, 2000 was $2,711,362,015 (1) Source Denton Central Appraisal D~stnct Reported Property Value as of September 30, 1999 - 135- Comprehensive Annual Financ,al Report CITY OF DENTON, TEXAS SCHEDULE OF INSURANCE IN FORCE SEPTEMBER 30, 2000 The C~ty of Denton ~s largely self-~nsured Th~s ~ncludes but ~s not hm~ted to the first $50,000 of each property loss and $10,000 of each vehicle loss However, habd~ty pohc~es are purchased for a~rport, paramed~c/EMT, recreation program, and employee d~shonesty exposures Exposures that ere not retained by the City are covered by various insurance companies including Expiration Insurance Company Premium Pohc¥ No Date 1 FM Global 9249,214 JT120 10/01/2001 2 Associated Awat~on Underwriters 5,750 ALI208561 09/30/2001 3 Admiral Insurance Company 5,250 A99CB07049 01/31/2001 4 Western Heritage Insurance Company 893 SCP 0308069 08/23/2001 5 Western Heritage Insurance Company 893 SCP-0323716 09/07/2001 6 Genes~s Indemmty Insurance Company 40,740 CX00002801 07/17/2001 - 136- Comprehensive Annual Financml Report CITY OF DENTON, TEXAS Table 14 Amount of Coverage L~m~t All R~sk Coverage {~ncludmg boder/mach~nery, commercial crime) $260,353,000 A~rport and Hanger Keepers L~abd~ty 5,000,000 Ambulance-Professional L~abd~ty 500,000 Recreation After School Action Program - MLK 1,000,000 Recreation After School Action Program - Denm 1,000,000 Pubhc Offlmals L~abd~ty 5,000,000 - 137 - Comprehensive Annual Financial Report CITY OF DENTON, TEXAS DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Fiscal Per Capita Year Population(I) Income(2) Average Age(2) 1991 66,470 $12,013 30 7 1992 66,902 12,013 30 7 1993 67,422 12,013 30 7 1994 68,650 12,013 30 7 1995 69,550 12,013 30 7 1996 70,450 12,013 30 7 1997 71,450 12,013 30 7 1998 73,050 12,013 30 7 1999 75,300 12,013 30 7 2000 79,250 12,013 30 7 (1) Planmng and Commumty Development Department's Estimate (2) 1990 Census (3) Denton Independent School D~strmt Estimate (4) Texas Workforce Commission Estimate - Denton County - 138- Comprehensive Annual Financ;al Report CITY OF DENTON, TEXAS Table 1 5 Education Level m Pubhc School Unemployment School Years (1) Enrollment (3) Rate (4) 15 8 10,960 7 5 % 15 8 11,233 7 7 15 8 11,650 6 2 15 8 11,800 6 0 15 8 12,100 4 9 15 8 12,512 3 5 15 8 12,777 2 4 15 8 12,986 2 4 15 8 13,283 2 9 15 8 13,481 2 8 - 139- Comprehensive Annual F~nanc,al Report CITY OF DENTON, TEXAS Table 16 MISCELLANEOUS STATISTICAL DATA SEPTEMBER 30, 2000 Form of Government Council-Manager Area 62 091 square mdes Date of Incorporation September 26, 1866 M~les of Streets 335 Number of Street L~ghts 5,650 F~re Protection Number of stations 6 Number of firemen and officers (exclusive of volunteer firemen) 141 Pohce Protection Number of stations 1 Number of pohcemen and officers 174 Mumc~pal Electric Department Number of customers 33,833 Annual electric productmn 1,149,142 MWH Average monthly consumption 91,751 MWH M~les of electric hne 579 m~les Mumc~pal Water Department Number of customers 21,146 Annual water production 5,386,680,000 gallons Average monthly consumption 432,461,385 gallons M~les of water ma~n 431 m~les Uumc~pal Wastewater Department Number of customers 19,325 M~les of wastewater ma~n 399 m~les Annual wastewater d~scharge 4,389,870,000 gallons/year Building Permits Issued 1,214 Recreation and Culture Number of parks 17 w~th 874 acres Number of hbrarms 2 L~brary ~tems ~n c~rculat~on 183,155 Total C~ty Employees 1,100 - 140 Comprehensive Annual Financial Report *THE DENTON DEVELOPMENT CODE* PLANNING & DEVELOPMENT DEPARTMENT CITY OF DENTON TEXAS DATE' February 13, 2001 TO. Mayor and C~ty Council FROM: Doug PoweR, Planning & Development 12hrector SUBJECT' Non-conforming Industrial Uses Several areas of the cx~ wbach currently contain trachuonal hght mdusmal uses will be nnpacted bythe draft Development Code and Zoning Map Most of these areas, if left vnth the proposed zoning will be nonconformlng uses under the new Development Code These areas include 1 Fort Worth Drive, south of Interstate 35 Des,gnated CommumtyMaxed Use Centers 2 Woodrow at McKme)5 north of Pecan Creek Desagnated CommumtylWuxed Use Centers 3 Eastern downtown, the Indusmal area off Bell Designated Downtown Umvemty Core 4 The city's Servace Center Designated Downtown Umvemty Core & Emstmg Ne~ghborhoods/Inftll Through various meetings vnth the pubhc, Caty Councd, and pubhc heanngs before the Planning and Zomg Cornmassmn, the zssue of expansmn and nonconformance of these emstmg uses arose Through tim process and from the observauons and comments of these groups and the Caty Council, staff has determed a potenual sohuon 1 Fort Worth Drive Area & 2. Woodrow at McFanney Area Staff suggests that the areas along Fort Worth Dnve/Woodrow .nth current mdusmal uses be zoned CommumtyMuxed Use Employment, and that these propemes be granted a Special Use Permt (SLIP) for these current uses The use table for Indusmal Uses m tNs chsmct would be changed to permat Laght Mannfactunng and Outdoor Storage vnth an SLIP These current uses would no longer be nonconforming uses The cltywould also have the ab,htyto grant SLIP's to other pmpemes wathm the Comrnumtylvhxed Use Employment D~smct An estabhshed SUP use that ~s enlarged or altered must be granted a new SUP by the Caty Council Any expansions over ten percent would stall requne conformance vnth the S~te Design Standards, msunng an upgrade of the pmpemes over um.e or as theyexpand We also suggest that mdusmal centers, employment centers, and regtonal centers chsmct edges adjacent to all dwelling types be requn-ed to prowde a 50 foot landscape and wall buffer combmauon Heavy mdusmes should estabhsh a hrger buffer chstance, such as 100 feet, when adjacent to any res~denttal dwelling 3 Downtown IndustrialArea' As chscussed at the Ctty Council workshop on February 2nd, the mdusmal uses around the Mormon's Mall would be zoned mdusmal vnth an SUP for expansions Staff would suggest that these areas be rezoned to DC-G v~th an SUP for the base property where the use currently crests Other properties adjacent to these sites would be appropnately zoned vath Downtown Umverslty Core des~gnalaons Any expansiom would reqmre that a new SUP be granted for adchttonal undeveloped lands Any expansions -2- over ten percent would sttU reqtttre conformance vnth the Site Design Standards, msunng an upgrade of the propemes over ume or as they expand 4 City Service Center. The CttyService Center ts currenflyzoned SF-7 This zomg ts mappropmte for tim use and needs a hght mdusmal destgnauon The western secuon of the sennce center property ts chvtded by a flood plato and ts designated vathm the Downtown Umvemty Core The eastern, and major land holding, ts designated Exastmg Neighborhoods/Inf,ll Compaubthty The land use plan as designated ts mappmpnate, both vath this spht tn chsmct designataon on the Land Use Plan, and also vnth the spht m proposed new zoning designauons Staff suggests that the land use plan be amended to designate the entire parcel as Employment Centers, and further, zone tim property as Employment Centers Indusmal wbach allows by right all of the current uses /nkm GMMy Docura~nta\DEVELOPMENT GODE~Pubhc i.~anng & Worl~hop Info'qaxlusmal Issu~ memo to GC 2 13-01 doc CITY HALL WEST * 221 NORTH ELM · DENTON/TEXAS ' 76201 PHONEI 940/349 8350 · FAXI 940/349 7707 OR~CENO ~ O~D~CE oF TX C~T¥ O~ ~O~, ~S, ~ow~ ~o~ · o ~ ~o~. co~c~.~ ~ ~o~ ~ ~ Ac~s o~ PL~D DE~LOP~E~ DIS~CT T~ ~D-20) LOCATED ~ONO T~ SO~AST S~E OF ~TERSTA~ HIO~AY 3~-E BET~EN LILL~ ~LER P~WAY ~ ~TATE SCHOOL RO~, PROLOG FOR A PEN~TY ~ ~O~ OF $2,000 FOR VIOLATIONS T~OF, EFFECT~ DA~ ~AS, Bob ShcRon Ent~ns~s, on behalf of D~nton r~qu~st to ~nd ~ approwd concept p~ for 136 36~ acres of l~d c~cntly D~vclopm~nt Dm~ot Tw~n~ ~D-20), ~d ~AS, on October ~4, ~ 998, ~ Plug ~d Zomng Co~smon r~co~cnd~d appmv~ of~ ~nt to ~ ~ppmwd concur pl~ for 136 365 ~crcs c~tly ~ Pl~cd D~wlopmcnt Dis~ct ~n~ ~D-20), ~d ~AS, ~ C~ Co~ml ~ ~t ~ ch~gc m zo~g ~1 Demon D~wlopm~t PI~, NOW ~FO~ ~ CO~C~ OF ~ CI~ OF DE~ON ~BY O~S ~ ~a~ ~ ~nd~d concept ~1~ of ~ 136 36~ ~cr~s of l~d w~ Pl~d Dcwlopm~nt Dmmct ~cn~ ~D-20) d~sonb~d m E~b~ts A ~d B, ~ach~d h~r~to ~d mco~omt~d by r~f~r~ncc herren, m approved, sub, cot to ~ following con~ons 1 ~ p~d ~d r~s~ot~d l~d uses ~llo~cd w~ thc L~t ~d~ - Rcsmctcd (LI- R) ~d L~t ~dusmal (LI) ~g ~smcts shall bc ~ hst~d m ~b~t C ~ ~t ~ C~'s offim~ zo~g m~ ~s ~ndcd to show ~ ch~gc m zomng dm~ct cl~mfic~on ~ ~t ~s ord~c~ shsll b~om~ cff~c~w fo~ccn 04) ~ys ~om ~c date of T~x~, w~ t~n (10) d~ys of~c d~t~ of~m z-98-00~ ATTEST. JENNIF~.R WALTERS, CITY SECRETARY EXHIBIT A FIELD NOTES UNICORN LAKE LEGAL DESCRIPTION All that certain 136 365 acre tract, or parcel of land s~tuated in the M E P & P R R Co Survey, Abstract Number 950, Denton County, Texas; said tract being a part of a First tract shown by deed to Foxworth-Galbraith Lumber Company and recorded in Volume 474, Page 491 of the Deed Records of Denton County, Texas and being more particularly described as follows BEGINNING, for the East comer of the tract being described harem at an iron pin found set in concrete in the southwest right-of-way of Interstate H~ghway 35 East, said corner being the most northern corner of tract of 1 570 acres as shown by deed to Josten's Inc and recorded tn Volume 571, Page 39, of Deed Records Denton County, Texas, THENCE South 38 degrees 22 minutes 25 seconds West along the northwest boundary hne of the past mentioned 1 570 acre Josiah's Inc tract 345 37 feet to a steel pin ~n concrete ~;~r the west corner of the above mentioned 1 570 acre tract, and being an inner el corner on the Original Foxworth-Galbralth Lumber Company F~rst Tract, THENCE South 02 degrees 39 minutes 24 seconds West 2391 49 feet to a large round fence comer post, for the southeast comer of the Foxworth-Galbraith Lumber Company F~rst Tract same being an Inner el corner on the Denton State School tract, THENCE South 89 degrees 45 minutes 02 seconds East along fencehne and the North Boundary Line of the above mentioned Denton State School Tract, 1881 30 feet to a steel pin on the West side of a corner post for the southwest comer of the Foxworth-Galbraith Lumber Company First Tract, and being in the West Boundary Line of the M E P & P R R Company Survey, Abstract Number 950, THENCE North 00 degrees 26 minutes 59 seconds West with a fence a distance of 3027 40 feet to an iron pin set In the ground at the southwest comer of a 15 137 acre tract, THENCE East with the southline of said 15 137 acre tract w~th a beanng of South 89 degrees 59 minutes 47 seconds West wIth a d~stance of 1273 64 feet to an iron pin set in the ground at the southeast comer of said 15 t37 acre tract, THENCE South 40 degrees 03 minutes 00 seconds West a distance of 309 61 feet to an iron pin set in the ground in said southwest right-of-way of Interstate Highway 35 east and also being the East comer of said 15 137 acre tract, THENCE North 49 degrees 57 minutes 00 seconds West w~th said right-of-way a distance of 927 03 feet to the point of beginning EXHIBIT C PERMITTED AND RESTRICTED LAND USES Within the Light Industrial-Restricted (LI-R) and Light Industrial (LO zoning districts X means the use ~s pmtublted witlnn the designated zone distnct Prohibited in Prohibited m Permitted by Code of Ordinances in PD-20 PD-20 Straight Light Industrial Classification LI-Restncted LI Classification Classification One Family Dwelling Restricted Dormlto~l Boarchnl~ or Roonunl~ House Hotel or ,Motel Ar~ Gallery or Museum Cemetery or Mausoleum X X Church or Rectory College Or Umversity or Pnvate School Day C.'~p Day Nursery or Kindergarten School Group Home x x Halfway House X X Home or Care of Alcoholic, Narcotic or Psycluamc Patients X X Hospital (general acute care) Hospital (chrome care) Institutions of Reli~ous or pb,lantl~orpic Nature Pubhc Library Monastery or Convent Nursm~ Home or l~.esidence Home for Aged Occasional Sales Park, Playground or Pubhc Community Center School~ Private Prmaary or Secondary Sehool, IPubhc or Deno_mmauonal Sehool,iBus,.ne~s or Trade Aecessgry Bmldmg Co-~-,~_-_,ty Center (pnvate) Electric Gener_atmg Plant X X Electric Substation 100' setback X Electric Tr~u~m~.~s, on l.me X X Temporary Field or Coustruetton Office Fire Station or Similar Pubhc Safety Bmldmg Gas Tr~,~ml~.~ion Line and Metenn~ StaUon 100' setback X Home 0ccupatton Off-Street parhng Incld_ant-! tO Man Use Off-Street l~.emote Parking X Pnvate Utihty Shop or Storage Yard Public Bualdmg~ Shop, Yard of Government ~ Prohibited in Prohibited m PD-20 PD-20 Perrmtted by Code of Ordinances m LI-Restncted LI Straight Light Industnal Classification ClassfficationClassffication Radio ~-~'or Telews~on Microwave Tower _.____-- X X_~ ~tatiort ~ ~ ~~ ?nvate Sw~ool ~ -----'----------- ~ustness Office ~ ~ ~~ Telephone Line and Exchange Sw~tchng or Relay Station ~ --~ -- X Water Re~tati°n or Well ~ ~ X X X Amusement_~Commermal~ w~th Golf Course X )ance Hall, I Club X X Commercial Rae_~ X ~ X [ or Exhibition Area X Go Cart Track Golf Course or c Pubhc P a_l!.y_.Fteld or Stadmm X X Rodeo Grounds toiler or Ice Skatm.~ X X [ rental X ' Tenms Club X X X Theater~_.Other than Dnve-Ln ' X X X SUP X X ~ or X X X X x x X X X X R~ukoad Team Track X X X X X Auto Sale: 100' Setback C_rasol~ne Servtce Station 100' Setback ?arts Sales Store ('" (Prohibited m Prohlbtted in PD-20 PD-20 'errmtted by Code of Ordinances in LI-Rastncted LI Straight Light Industrial Classtfication Classification Classlficatton X New or Used Car Sales Lot X X Ttre Retreadm or C~ X Parts Sales 100' Setback Cafetena and Custom Personal Service Sho_92. Needlework or Garden Sho_.p_ or Handicraft Sho_.p_p~ 100' Setback ~ SorvlCe ' or ' or Letter , c ~uneral Parlor 100' Setback ~ Sale of Beer X )n Prermse Sale of Beer and/or Wine X Licensed Private Club X 100' Setback Restaurant ~ Stores X X or Trailer Rental X X Ammal X Antmal Clmm Farm Plant Nurse_.!Y_ X X X X X SUP X ' ' I Prohibited m Prohibited ~n Permitted by Code of Ordinances m PD-20 PD-20 LI-Restncted LI Straight Light Industnal Class~ficatlon Classfficat~on Classification ,r Fabncat~on X Yard X X ~ and Machiner~.Sales a X Job SUP X X or Ice Cream Plant X Products Stora_l~- Wholesale X Scientffi¢ or Research Laboratories X X and Sales of] X ~ales Warehouse X Trailer Kental or Sales X X Wholesale Office and Sarn_ar~_ple Room X , Sale of Concrete X ' Mobile Home Park X X ; or X X ~reatment Plant X X ~ Auction X X . or Yard X X Gravel or Earth Sales X Exh-act~on and Storage of sand, , or Gravel X X Petroleum or Gas Well X Petroleum Collecting or Storage Facilities SUP SUP Mmmg or Storage of Mlmn~ Wastes X or Concrete Batch. rog Plant X X i or Tile Plant X X ~ or Samta~y lhll Area X X Light Manufactunng or Industrial Uses which meet performance X 100' Setback means the structure is reqmred to be set back no less than 100 feet from the adjacent residential zone district at the western boundary of the hght-Industnal - Restricted zone district SUP means a Specific Use Penmt must be approved by City Council prior to the development of the specified uses Staff Responses To Key Issues Identffied by the Chamber's Development Code Sub-Committee 02/13/01 1 For property tax purposes, property not presently located watinn the city hmlts, but included m the new Land Use Plan, should be assessed accordang to actual usage and not its "pm-zoned" category Staff response: T~s has been previously chscussed For property tax purposes, assessments are according to actual usage 2 The Code should provide an admamstratlve approval process, winch wall hm~t the amount ofdmcret~onary appearances before public bodies [Sub-Chapter 35 4] Staff response: The code contmns standards that are admlmstemd by staff to the extent allowed by state law 3 The Development Code should allow for a clear, specffic and practical variety of design standards and construction materials, differentiating between Resadentlal and Commemlal/Industnal uses [35 12] Staff response: This is a pohcy decision for the council The staffwdl provade the standards for site plan approval for design and construction materials when the site plan remew subchapter as being reviewed by cotmcfi 4 The applicability thresholds for the expansaon of exastang structures where a m-plat ~s not reqmmd (currently 1,000 square feet or 10%) are dafficult to apply to exastang development and should be increased We recommend 1,000 square feet or 25% winchever as greater (City staff has created a spreadsheet to address the apphcabthty thresholds for various property types and parking lots ) [35 12 2] 5 With regard to the expansaon of existing structures, the s~te Desagn Standards should apply only to the expansion If the expansaon is less than 50% The entire site should comply only ~fthe expansion is greater than 50% [35 12 2] Staff response to 4 & 5. These are policy issues to be decided by council 6 The requirement to ~mplement specific site design standards for resadentlal lots of 10,000 square feet or less could hmlt affordable housing [35 12 7 B] 7 The City should not expand the site design standards that are proposed for residential lots of 10,000 square feet or less to all residential lots Staff response to 6 & 7 The reqmmment for site design standards as a policy assue for council Page 1 8 The reqmrement to exclude adjacent homes from hawng the same design and floor plan ~s cost probab~t~ve The requrrement should be changed to "front elevation" and floor plan should be taken out [35 12 7 B 2 c] Staff response: Tins ~s a pohcy ~ssue The staff recommends to delete the reference to floor plans and rewse the sentence to read "The same exterior elevation shall not be repeated w~thxn five contaguous lots" 9 The reqmrement that ten percent 00%) of gross bmldmg floor area (for burldmgs over 40,000 square feet) be prowded as pubhc space is cost protub~tlve for bmldmgs w~th more than one story The reqmrement should be based on the burld~ng's footprint [35 12 7 F 2 a and b] Staff response: Tins ~s a pohcy ~ssue for council The staff recommends a graduated pubhc space reqmrement or as the Chamber suggests, only tying ~t to the ground floor l0 The reqmramant to preserve Upland Habitat (at least a 10-acre grove of trees) should be related to the sine, nature and/or mtenslty of the development (currently the preservation reqmrement ~s 50% regardless of the development) [35 14] Staff response: This ~s a pohcy issue The Upland Habitat regulation could be epphed d~fferently to commereml and lndus~al uses 11 Many of the Natural Area features referred to throughout the document are not necessarily essential for health and safety preservation and management, and should be separated from the Enwronmentally Sensitive Areas (Suggest moving to the grading and cleanng manual) Staff response: Staff recommends rewording the Natural Area subchapter to Enwronmentally Sensitive Areas subchepter and placing these provisions ~n the Land D~sturblng Activities subchapter (cleurmg and grading) 12 A tree replacement pohcy should be considered ~nstead of a tree preservation requrrement Staff response: The proposed ordinance for trees was passed out to council Council should g~ve staffdtrect~on on tins ordinance 13 Implementation of the new zoning categories across the entire C~ty and ETJ could result in legal, non-conforming uses for some property owners Property owners may not be aware of the ramffieattons of having legal, non-confonmng property [35 20] 14 Evaluate the extent to whmh cresting, non-conforming structures will be subject to the new code m the event that they are totally destroyed and replaced at the original s~te [35 20] Staff response to 13 & 14: These are pohcy ~ssues for council The council may want to consider g~wng more spemfic not, ce to nonconforming property Page 2 15 Bicycle parking racks should not be required for commercial and lndusmal projects We recommend offenng an ~ncentlve for those developers who place bicycle parlang racks on their property Staff response: Tlus is a policy issue for councd that has been prewously discussed 16 The Code should encourage and reward development of commercial and industrial improvements w~th the intent of balancing the residential to non-residential property tax base ratio Staff response: Tlus is a policy issue to be dec~ded by councd The Denton Plan identifies economic development goals and strategies The chamber could provade ~ncentlves for staff to rewew and bnng back to Cotmcd Page 3 ,Development Code Distncts - Permitted Uses & L~m~tat~ons February 12, 2001 RURAL DISTRICT, RD - Rural Residential Res,denflal Land Use Categories 2 That each accommodabon umt shall Agriculture ' have 1 off-street parking space, and L~vestock the owners shall have 2 parking S~ngle Family Dwellings spaces All spaces shall be ~n Accessory Dwelhng Un~ts conformance w~th the requirements L~veNVork Units of the Off-Street Parking secbon of Community IHomes for the D~sabled th~s Chapter Group Homes w/SUP 3 That only one ground or wall s~gn, Manufactured Housing Developments constructed of a non-plastic material, non-~nter~or illuminated of 4 Commercial Land Use Categories sq ff maximum s~ze be allowed Home Occupabon ,&ny exterior ~llum~nabon of s~gnage Sale of Products Grown On-Site shall be ~nstalled such that ~t does Bed and Breakfast w! L(10) not d~rectly ~llumlnate any res~denbal Equestnan Facilities structures adjacent or nearby the Commercial Outdoor Recreation travelers' accommodabon Admimstrat~ve or Research Fac~libes w/SUP 4 That the number of accommodation Broadcasting or Production Studio w/SUP umts allowed shall be proportional to Temporary Uses w/SUP the permitted density of the zone Each traveler's accommodabon umt Industrial Land Use Categories shall be counted as 0 6 umts for the Feed Lots w/SUP purpose of calculabng the permitted Wholesale Nursenes number of traveler's Kennels accommodations Vetennary Chn~cs w/L(15) 5 AIl traveler's accommodations shall be w~th~n 200 feet of a collector or Institutional Land Use Categorms arterial Street designations shall be Basic Utlhtles as determined by the City of Denton Parks and Open Space Comprehensive Plan Distances Churches shall be measured via pubhc street Adult or Child Day Care or alley access to the s~te from the K~ndergarten, Elementary School artenal 6 Excluding the business-owner's umt Limitations and the area of the structure ~t w~ll L(10) Travelers' accommodabons, are occupy, there must be at least 400 permitted, prowded that sq ft of gross mtenor floor space 1 The bus~ness-owner or manager shall remaining per umt be rrequ~red to reside on the property 7 Traveler's accommodabons are occupied by the accommodation, or hm~ted to no more than 5 guest adjacent property un~ts L(15) Uses are hmlted to no more than 5,000 square feet of gross floor area per lot Page 1 Development Code D~stncts - Permitted Uses & L~m~tat~ons February 12, 2001 RURAL DISTRICT RC- Rural Commercial Residential Land Use Categories Limitations Agrmulture L(11) Limited to s~t down only, no take-out L~vestock servme and no drive up service S~ngle Family Dwelhngs permitted L~m~ted to no more than Accessory Dwelhng Umts 100 seats and no more than 4,000 Dwelhngs Above Businesses square feet of restaurant area LlveANork Un~ts L(15) Uses are hm~ted to no more than 5,000 Commumty Homes for the D~sabled square feet of gross floor area per lot Group Homes w/SUP L(21) Bakery and botthng areas not to Multi-Family Dwelhngs w/SUP exceed 2,500 square feet Sales on Manufactured Housing Developments premises of products produced required ~n th~s zone Commercml Land Use Categorms L(24) L~ght manufactunng of products sold Home Occupabon on s~te permitted, area of manufacture Sale of Products Grown On-S~te not to exceed 1,500 square feet Hostels L(32) Not allowed to locate adjacent to an Bed and Breakfast arterial, w~thln 1,000 feet of another Restaurant or Pnvate Club w/L(11) Sexually Oriented Bus~ness, w~thln Professional Services and Offices w/L(15) 1,000 feet of a daycara or school, and, Vehicle Repair 1,000 feet of any ras~dentlal use Equestrian Fac~hbes Commercial Outdoor Recreation Major Event Enterta~nmentw/SUP Admlmstratlve or Research Fac~htles w/L(15) Broadcasting or Production Studio Sexually Oriented Business w/SUP & L(32) Temporary Uses w/SUP Industrial Land Use Categories Bakenes w/L(21) Bottling Plants w/L(21) Feed Lots Light Manufactunng w/SUP & L(24) Wholesale Nursenes Kennels Veterinary Chmcs w/L(15) Institutional Land Use Categories Basic Ubht~es Community Service Parks and Open Space Churches Seml-pubhc, Halls, Clubs, and Lodges Adult or Child Day Care Kindergarten, Elementary School Page 2 Development Code D~stncts - Permitted Uses & L~m~taflons February 12, 2001 EXISTING NEIGHBORHOODS / INFILL COMPATIBILITY, NR-2 - Neighborhood Residential 2 Residentml Land Use Categories 3 The maximum gross habitable floor Agriculture area (GHFA) of the accessory Livestock residential structure shall not Single Family Dwellings exceed 50% of the GHFA of the Accessory Dwelhng Umts w/L(1)ISUP (2/210t) pnmary residence on the lot, and L~ve/Work Units shall not exceed 1000 sq ft Community Homes for the Disabled GHFA Manufactured Housing Developments w/SUP 4 One additional parking space shall be provided that conforms to the Commercial Land Use Categories off-street parking provisions of this Home Occupation Chapter Sale of Products Grown On-S~te L(11) L~m~ted to s~t down only, no take out or Restaurant or Private Club drive up/drive through service permitted Equestnan Fac~hbes L~m~ted to no more than 100 seats and no Commere~al Outdoor Recreation more than 4,000 square feet of restaurant Administrative or Research Fac~ht~es w/SUP area Broadcasting or Production Studio w/SUP L(12) Maximum of fifty (50) seats Temporary Uses w/SUP L(13) Uses are hm~ted to no more than 55,000 square feet of gross floor area Industrial Eand Use Categories per lot Veterinary Chmcs w/L(15) L(15) Uses are limited to no more than 5,000 square feet of gross floor area per lot Institutional Land Use Categories Basic Utlhbes w/SUP Community Service w/L(12) & L(13) Parks and Open Space Churches Semi-public, Halls, Clubs, and Lodges w/SUP Adult or Child Day Care w/SUP Kindergarten, Elementary School w/SUP Nursing Homes w/SUP L~m,tat,ons L(1) Accessory remdenbal un~ts are permitted, subJect to the following additional cntena 1 The proposal must conform w~th the overall maximum lot coverage and setback reqmrements of the underlying zone 2 The maximum number of accessory dwelling umts shall not exceed 1 per lot Page 3 Development Code Distncts- Permitted Uses & L~mitat~ons February 12, 2001 EXISTING NEIGHBORHOODS / INFILL COMPATIBILITY NR-3. Neighborhood Residential 3 Residential Land Use Categories 1 The proposal must conform with Single Family Dwelhngs the overall maximum lot coverage Accessory Dwelhng Units w/L(1)/SUP (2/2/01) and setback requirements of the Attached S~ngle-famlly Dwellings w/L(3) underlying zone Commumty Homes for the D~sabled 2 The maximum number of accessory dwelhng umts shall not Commercial Land Use Categories exceed 1 per lot Home Occupation 3 The maximum gross habitable floor Commercial Outdoor Recreation area (GHFA) of the accessory Temporary Uses w/SUP residential structure shall not exceed 50% of the GHFA of the Industrial Land Use Categories primary residence on the lot, and None Permitted shall not exceed 1000 sq ft GHFA Institutional Land Use Categories 4 One additional parking space shall Basic Ut~htles w/SUP be prowded that conforms to the Commumty Service off-street parking prows~ons of th~s Parks and Open Space Chapter Chumhes L(3) In part cfa subd~wsion of 2 acres or Sem~-pubhc, Halls, Clubs, and Lodges w/SUP more, up to 2 umts may be attached Adult or Child Day Care w/SUP by a common wall ~f the lots which K~ndergarten, Elementary School w/SUP contain the attached structures do not Nursing Homes w/SUP abut the penmeter lot hnes of a subdivision, the Individual common Limitations wall umts are on separate lots L(1) Accessory residential un~ts are designed to be sold ind~v~dually, and permitted, subject to the following they comply w~th the Sub-chapter 12 additional cntena Additionally, umts must have the appearance of a s~ngle family residence from the street Page 4 Development Code Districts - Permitted Uses & L~m~tabons February 12, 2001 EXISTING NEIGHBORHOODS / INFILL primary residence on the lot, and COMPATIBILITY, shall not exceed 1000 sq ft NR-4 - Neighborhood Residential 4 GHFA 4 One additional parking space Residential Land Use Categories shall be prowded that conforms S~ngle Family Dwelhngs to the off-street parking Accessory Dwelhng Umts w/L(1) provisions of this Chapter Attached S~hgle-fam~ly Dwelhngs w/L(4) L(4) in part of a subd~ws~on of 2 acres or Duplexes more, up to 4 umts may be attached Commumty'Homes for the Disabled by a common wall ~f the lots which Mulb-Fam~ly Dwelhngs w/L(5) contain the attached structures do not abut the per~meter lots i~nes of a Commercial Land Use Categories subdivision, the ~nd~v~dual common Home Occupation wall umts are on separate lots Bed and Breakfast w/L(10) designed to be sold ~nd~v~dually, and Commercial Outdoor Recreabon they comply w~th the design Temporary Uses w/SUP standards of Sub-chapter 12 L(5) L~m~ted to four (4) units and subject Industrial I. and Use Categories to Sub-chapter 12 None Permitted L(10) Travelers' accommodations, are permitted, prowded that Institutional Land Use Categories 1 The bus~ness-owner or manager Basic Utiht~es w/SUP shall be required to reside on the CommunitylService property occupied by the Parks and Open Space accommodation, or adjacent Churches property Seml-pubhc, Halls, Clubs, and Lodges w/SUP 2 That each accommodabon unit Adult or Child Day Care shall have 1 off-street parking K~ndergarten, Elementary School space, and the owners shall Nursing Homes w/SUP have 2 parking spaces Ail spaces shall be ~n conformance Limitations w~th the requirements of the Off- L(1) Accessory residential umts are Street Parking section of th~s permitted, subject to the following Chapter additional cntena 3 That only one ground or wall 1 The proposal must conform s~gn, constructed of a non-plastic with the overall maximum lot matenal, non-mtenor illuminated coverage and setback of 4 sq ft maximum size be requirements of the allowed Any exterior ~llummat~on underlying zone of s~gnage shall be ~nstalled such 2 The maximum number of accessory that ~t does not d~rectly illuminate dwelhng un~ts shall not exceed 1 per any res~denbal structures lot adjacent or nearby the travelers' 3 The maximum gross habitable floor accommodation area (GHFA) of the accessory 4 That the number of residential structure shall not accommodation umts allowed exceed 50% of the GHFA of the shall be proportional to the permitted density of the zone Page 5 Development Code D~stncts - Permitted Uses & L~m~tat~ons February 12, 2001 Each traveler's accommodation umt shall be counted as 0 6 umts for the purpose of calculating the permitted number of traveler's accommodations 5 All traveler's accommodations shall be w~thln 200 feet of a collector or arterial Street designations shall be as determined by the C~ty of Denton Comprehensive Plan D~stances shall be measured via pubhc street or alley access to the s~te from the arterial 6 Excluding the bus~ness-owner's umt and the area of the structure ~t w~ll occupy, there must be at least 400 sq ft of gross ~ntenor floor space rema~mng per umt 7 Traveler's accommodations are hm~ted to no more than 5 guest umts Page 6 Development Code Districts - Permitted Uses & L~mltatlons February 12, 2001 EXISTING NEIGHBORHOODS I INFILL COMPATIB~ILITY: NRMU-t2 - Neighborhood Residential M,xed Use '12 2 That each accommodation unit Residential Land Use Categories shall have 1 off-street parking Single Family Dwellings space, and the owners shall Accessory Dwelhng Units have 2 parking spaces All Attached S~ngle-fam~ly Dwellings spaces shall be in conformance Dwellings Above Businesses w/SUP with the requirements of the Off- Llve/VVork Units Street Parking section of th~s Duplexes Chapter Commumty Homes for the Disabled 3 That only one ground or wall Multi-Family Dwelhngs sign, constructed of a non-plastic material, non-mtenor ~llumlnated Commercial Land Use Categories of 4 sq ff maximum s~ze be Home Occupation allowed Any exterior ~llummat~on Bed and Breakfast w/L(8) of s~gnage shall be ~nstalled such Retail Sales & Servmes w/L(16) that it does not d~rectly illuminate Professional Services and Offices w/L(15) any residential structures Commercial Outdoor Recreation w/SUP adjacent or nearby the travelers' Adm~mstrat~ve or Research Faciht~es w/L(14) accommodation Broadcasting or Production Studio w/SUP 4 That the number of Temporary Uses w/SUP accommodabon umts allowed shall be proportional to the Industr, al Land Use Categories permitted density of the zone Vetennary Chmcs w/SUP Each traveler's accommodabon unit shall be counted as 0 6 units Institutional Land Use Categories for the purpose of calculating the Basic Utlhbes w/SUP permitted number of traveler's Community ,Service accommodations Parks and Open Space 5 All traveler's accommodations Churches shall be within 200 feet of a Sem~-pubhc, Halls, Clubs, and Lodges w/SUP collector or arterial Street Adult or Child Day Care designations shall be as K~ndergarten, Elementary School determined by the C~ty of Denton Nursing Homes Comprehensive Plan D~stances Medical Centers w/SUP shall be measured via public street or alley access to the s~te Limitations from the artenal L(8) Travelers' accommodations, are 6 Excluding the bus~ness-owner's permitted, prowded that umt and the area of the structure 1 The bus~ness-owner or manager ~t w~ll occupy, there must be at shall be required to restde on the least 400 sq ft of gross mtenor property occupied by the floor space remaining per unit accommodation, or adjacent 7 Traveler's accommodabons are property hm~ted to no more than 8 guest units Page 7 Development Code Districts - Permitted Uses & L~m~tatlons February 12, 2001 L(14) Uses are hm~ted to no more than 10,000 square feet of gross floor area L(15) Uses are hm~ted to no more than 5,000 square feet of gross floor area per lot L(16) Uses are hm~ted to no more than 1,500 square feet of gross floor ama per lot Page 8 Development Code D stncts - Permitted Uses & L m tat ons February 12, 2001 EXlSTIN(~ NEIGHBORHOODS / INFILL COMPATIBILITY NRMU - Neighborhood Residential M~xed Use Residential Land Use Categories Lim~tatmns S~ngle Family Dwellings L(11) L~m~ted to s~t down only, no take-out Accessory Dwelhng Umts service and no drive up service Attached S~ngle-fam~ly Dwelhngs permitted L~m~ted to no more than Dwelhngs Above Businesses 100 seats and no more than 4,000 L~ve/VVork UnIts square feet of restaurant area Duplexes L(13) Uses are limited to no more than Community Homes for the D~sabled 55,000 square feet of gross floor Multi-Family Dwelhngs area per lot L(21) Bakery and botthng areas not to Commercial Land Use Categorme exceed 2,500 square feet Sales on Home Occupation premises of products produced Hostels required ~n th~s zone Hotels Bed and Breakfast Retail Sales & Services w/L(13) Theaters less than 1,000 Seats Restaurant or Private Club w/L(11) Professional Services and Offices w/L(13) Commercial Outdoor Recreation w/SUP Adm~mstrat~ve or Research Fac~ht~es Broadcasting or Production Studio Temporary Uses w/SUP Industrial Land Use Categories Bakenes w/L(21) Botthng Plants w/L(21) Veterinary Chn~cs Institutional Land Use Categories Basic Ut~ht~es w/SUP Commumty Service Parks and Open Space Churches Semi-pubhc, Halls, Clubs, and Lodges Adult or Child Day Care K~ndergarten, Elementary School M~ddle School Nursing Homes Medmal Centers Page 9 Development Code Distncts - Permitted Uses & L~m~tatlons February 12, 2001 NEIGHBORHOOD CENTERS. NCR-2 - Neighborhood Center Res,dentlal 2 Res,dentlal Land Use Categor,es street parking prows~ons of th~s Agriculture w/SUP Chapter Single Family Dwellings L(4) In part of a subdivision of 2 acres or Accessory Dwelling Units w/L(1) more, up to 4 umts may be attached Attached Smgle-fam~ly Dwelhngs w/L(4) by a common wall ~f the lots which Commumty Homes for the D~sabled contain the attached structures do not abut the perimeter lots hnes of a Commercial Land Use Categories subd~wslon, the individual common Home Occupabon wall umts are on separate lots Equestrian Facilities designed to be sold ~nd~vldually, and Commercial Outdoor Recreation they comply with the design Temporary Uses w/SUP standards of Sub-chapter 12 L(14) Uses are hmlted to no more than Industrial Land Use Categories 10,000 square feet of gross floor Kennels w/L(14) area Institutional Land Use Categories Basic Ut~ht~es Parks and Open Space Churches Sem~-pubhc, Halls, Clubs, and Lodges w/SUP Adult or Child Day Care w/SUP Kindergarten, Elementary School w/SUP L,mitatlons L(1) Accessory residential umts are permitted, subject to the following additional cntena 1 The proposal must conform w~th the overall maximum lot coverage and setback requirements of the underlying zone 2 The maximum number of accessory dwelhng units shall not exceed 1 per lot 3 The maximum gross habitable floor area (GHFA) of the accessory residential structure shall not exceed 50% of the GHFA of the primary residence on the lot, and shall not exceed 1000 sq ft GHFA 4 One additional parking space shall be provided that conforms to the off- Page 10 ,Development Code D stricts - Permitted Uses & L m tat ons February 12, 2001 NEIGHBORHOOD CENTERS, NCR-4 - Neighborhood Center Residential 4 Residential Land Uee Categories L(4) In part of a subd~wslon of 2 acres or Single Family Dwelhngs more, up to 4 umts may be attached Accessory Dwelhng Umts w/L(1) by a common wall ~f the lots which Attached Single-family Dwellings w/L(4) contain the attached structures do Community Homes for the D~sabled not abut the perimeter lots hnes of a subd~ws~on, the ~nd~wdual common Commercial Land Use Categories wall umts are on separate lots Home Occupation designed to be sold ~nd~v~dually, and Commercial Outdoor Recreation they comply w~th the design Temporary Uses w/SUP standards of Sub-chapter 12 Industrial Land Use Categories None Permitted Inet,tutional Land Use Categories Basic Ut~ht~es Parks and Open Space Churches Sem~-pubhc, Halls, Clubs, and Lodges w/SUP Adult or Child Day Care w/SUP K~ndergarten, Elementary School w/SUP L~m~tations L(1) Accessory residential umts are permitted, subject to the following additional cntena 1 The proposal must conform w~th the overall max,mum lot coverage and setback requirements of the underlying zone 2 The maximum number of accessory dwelhng units shall not exceed 1 per lot 3 The maximum gross habitable floor area (GHFA) of the accessory residential structure shall not exceed 50% of the GHFA of the primary residence on the lot, and shall not exceed 1000 sq ft GHFA 4 One additional parking space shall be provided that conforms to the off- street parking provisions of th~s Chapter Page Development Code D~stncts - Permitted Uses & L~m~tat~ons February 12, 2001 NEIGHBORHOOD CENTERS NCR-6 - Neighborhood Center Residential 6 Residential Land Use Categories street parking prews~ons of th~s S~ngle Family Dwelhngs Chapter Accessory Dwelhng Umts w/L(1) Attached Single-family Dwelhngs w/L(4) L(4) In part of a subdivision of 2 acres or LiveNVork Umts L(16) more, up to 4 umts may be attached Commumty Homes for the D~sabled by a common wall ~f the lots which Manufactured Housing Developments w/SUP contain the attached structures do not abut the per~meter lots hnes of a Commercial Land Use Categories subdlws~on, the ~nd~wdual common Home Occupabon wall un,ts are on separate lots Commercial Outdoor Recreation designed to be sold ~nd~vIdually, and Temporary Uses w/SUP they comply w~th the design standards of Sub-chapter 12 Industrial Land Use Categories L(16) Uses are hm~ted to no more than None Permitted 1,500 square feet of gross floor area per lot Institutional Land Usa Categorms Basic Ubht~es Parks and Open Space Churches Seml-pubhc, Halls, Clubs, and Lodges w/SUP Adult or Child Day Care w/SUP K~ndergarten, Elementary School w/SUP Nursing Homes w/SUP Limitations L(1) Accessory residential umts are permitted, subJect to the following add~bonal cntena 1 The proposal must conform w~th the overall maximum lot coverage and setback requirements of the underlying zone 2 The maximum number of accessory dwelhng umts shall not exceed 1 per lot 3 The maximum gross habitable floor area (GHFA) of the accessory residential structure shall not exceed 50% of the GHFA of the pnmary residence on the lot, and shall not exceed 1000 sq ft GHFA 4 One additional parking space shall be provided that conforms to the off- Page 12 Development Code D~stncts - Permitted Uses & Lim~tabons February 12, 2001 NEIGHBORHOOD CENTERS' spaces All spaces shall be In NCR-12 - conformance with the Neighborhood Center Residential '12 reequlrements of the Off-Street Parking section of this Chapter Residentlal~Land Use Categories S~ngle Family Dwelhngs 3 That only one ground or wall Accessory Dwelhng Units sign, constructed of a non-plastic Attached Single-family Dwelhngs material, non-interior ~llum~nated Dwelhngs Above Businesses of 4 sq ft maximum s~ze be L~veNVork Units allowed Any exterior ~llummatlon Duplexes of s~gnage shall be installed such Commumty Homes for the Disabled that it does not directly ~llum~nate Group Homes w/SUP any res~denbal structures Mulb-Famlly Dwellings adjacent or nearby the travelers' ~ accommodation Commercial Land Use Categories 4 That the number of Home Occupabon accommodabon umts allowed Bed and Breakfast w/L(10) shall be proportional to the Retail Sales & Services w/L(14) permitted density of the zone Professional Services and Offices w/L(13) Each traveler's accommodation Laundry Faciht~es unit shall be counted as 0 6 umts Commercial Outdoor Recreation w/SUP for the purpose of calculating the Temporary Uses w/SUP permitted number of traveler's accommodations Industrial Land Use Categories 5 All traveler's accommodations None Permitted shall be w~th~n 200 feet of a collector or artenal Street Institutional Land Use Categories designations shall be as Basic Ubht~es determined by the C~ty of Denton CommumtyService Comprehensive Plan D~stances Parks and Open Space shall be measured wa pubhc Churches street or alley access to the s~te Sem~-pubhc, Halls, Clubs, and Lodges w/SUP from the artenal Adult or Child Day Care 6 Excluding the bus~ness-owner's K~ndergarten, Elementary School unit and the area of the structure Nursing Homes w/SUP ~t w~ll occupy, there must be at least 400 sq ft of gross ~ntenor Limitations floor space rema~mng per umt L(10) Travelers' accommodations, are 7 Traveler's accommodabons are permitted, provided that hm~ted to no more than 15 guest 1 The business-owner or manager umts shall be rrequ~red to reside on the L(13) Uses are hm~ted to no more than property occupied by the 55,000 square feet of gross floor accommodation, or adJacent area per lot property L(14) Uses are hm~ted to no more than 2 That each accommodation umt shall 10,000 square feet of gross floor have 1 off-street parking space, and area the owners shall have 2 parking Page 13 Development Code D~str~cts - Permitted Uses & L~m~tat~ons February 12, 2001 NEIGHBORHOOD CENTERS' NCMU - Neighborhood Center M~xed Use Residential Land Use Categorms Limitations Attached S~ngle-fam~ly Dwelhngs L(13) Uses are hm~ted to no more than Dwellings Above Businesses 55,000 square feet of gross floor L~veNVork Umts area per lot Community Homes for the D~sabled L(14) Uses are hm~ted to no more than Group Homes w/SUP 10,000 square feet of gross floor Multi-Family Dwelhngs w/L(30) area L(21) Bakery and botthng areas not to Commercial Land Use Categor,es exceed 2,500 square feet Sales on Home Occupation premises of products produced Hostels required in th~s zone Hotels L(30) Permitted only in conJunction w~th Bed and Breakfast office or retail uses equal to at least Retail Sales & Services w/L(13) 15% of the floor space of the Theaters less than 1,000 Seats w/L(14) residential use Restaurant or Private Club w/L(13) Professional Services and Offices w/L(13) Laundry Fac~ht~es Commem~al Outdoor Recreation w/SUP Indoor Recreabon Administrative or Reseamh Fac~ht~es w/L(14) Broadcasting or Production Studio w/L(14) Temporary Uses w/SUP Industrial Land Use Categories Bakenes w/L(21 ) Botthng Plants w/L(21 ) Vetennary Chnlcs w/L(14) Institutional Land Use Categories Basic Ut~ht~es Commumty Servme Parks and Open Space Churches Semi-pubhc, Halls, Clubs, and Lodges Business / Trade Schools w/L(14) Adult or Child Day Care K~ndergarten, Elementary School M~ddle School Colleges w/SUP Medical Centers Page14 Development Code D stncts - Permitted Uses & L mitat ons February 12, 2001 DOWNTOWN UNIVERSITY CORE: spaces All spaces shall be ~n DR-1 - Downtown Residential 1 conformance w~th the requirements of the Off-Street Residential ILand Use Categories Parking section of th~s Chapter Single Family Dwellings Accessory Dwelhng Umts 3 That only one ground or wall Attached Single-family Dwelhngs s~gn, constructed of a non-plasbc Dwelhngs Above Businesses matenal, non-lntenor ~llum~nated L~ve/VVork uhlts of 4 sq ft maximum s~ze be Duplexes allowed Any exterior iIlum~nat~on Community Homes for the D~sabled of s~gnage shall be installed such Multi-Family Dwelhngs w/L(5) that ~t does not d~rectly ~llum~nate any residential structures Commercial Land Use Categories adjacent or nearby the travelers' Home Occupation accommodation Bed and Breakfast w/L(8) 4 That the number of Retail Sales l& Services w/L(15) accommodation units allowed Professional Services and Offices w/L(14) shall be proportional to the Laundry Faciht~es permitted density of the zone Administrative or Research Facihbes w/SUP Each traveler's accommodation Broadcasting or Producbon Studio w/SUP umt shall be counted as 0 6 un~ts Temporary Uses w/SUP for the purpose of calculating the permitted number of traveler's Industrial Land Use Categories accommodations Vetennary Chnics w/SUP 5 All traveler's accommodations shall be w~th~n 200 feet of a Institutional Land Uae Categories collector or arterial Street Basic Ut~ht~es w/SUP designations shall be as Parks and Open Space determined by the C~ty of Denton Churches Comprehensive Plan D~stances Sem~-pubhc, Halls, Clubs, and Lodges shall be measured via pubhc Adult or Child Day Care street or alley access to the site K~ndergarten, Elementary School from the arterial Medical Centers w/SUP 6 Excluding the business-owner's umt and the area of the Structure Limitations ~t will occupy, there must be at L(5) Limited to four (4) units and subject to least 400 sq ft of gross ~ntenor Sub-chapter 12 floor space remaining per unit L(8) Travelers' accommodations, are 7 Traveler's accommodations are perm~ed, provided that I~m~ted to no more than 8 guest 1 The business-owner or manager units shall be required to reside on the L(14) Uses are hm~ted to no more than property occupied by the 10,000 square feet of gross floor accommodation, or adjacent area property L(15) Uses are hm~ted to no more than 2 That each accommodation unit shall 5,000 square feet of gross floor area have 1 off-street parking space, and per lot the owners shall have 2 parking Page 15 Development Code D~stncts - Permitted Uses & L~m~tat~ons February 12, 20()1 DOWNTOWN UNIVERSITY CORE DR.2 - Downtown Residential 2 the reequ~rements of the Off-Street Resident~al Land Use Categor, es Parking section of this Chapter Single Family Dwelhngs Accessory Dwelhng Un~ts 3 That only one ground or wall s~gn, Attached S~ngle-fam~ly Dwelhngs constructed of a non-plastic Dwelhngs Above Businesses material, non-interior illuminated of 4 L~veNVork Un~ts sq ft maximum s~ze be allowed Duplexes Any exterior ~llum~nat~on of s~gnage Community Homes for the D~sabled shall be ~nstalled such that ~t does Multi-Family Dwelhngs not d~rectly ~llumlnate any residential structures adjacent or nearby the Commercial Land Use Categories travelers' accommodabon Home Occupabon 4 That the number of accommodation Bed and Breakfast w/L(9) umts allowed shall be proportional to Retail Sales & Services w/L(14) the permitted density of the zone Professional Services and Offmes w/L(14) Each traveler's accommodation unit Laundry Fac~ht~es shall be counted as 0 6 umts for the Adm~mstrat~ve or Research Fac~ht~es w/SUP purpose of calculating the permitted Broadcasting or Production Studio w/SUP number of traveler's Temporary Uses w/SUP accommodations 5 All traveler's accommodations shall Industrml Land Use Categories be w~th~n 200 feet of a collector or Botthng Plants w/L(21) arterial Street designations shall be Vetennary Chnms w/SUP as determined by the C~ty of Denton Comprehensive Plan D~stances Institutional Land Use Categor,es shall be measured via pubhc street Basic Ut~ht~es w/SUP or alley access to the site from the Parks and Open Space arterial Churches 6 Excluding the bus~ness-owner's umt Sem~-pubhc, Halls, Clubs, and Lodges and the area of the structure ~t w~ll Adult or Child Day Care occupy, there must be at least 400 K~ndergarten, Elementary School sq ft of gross ~ntenor floor space M~ddle School rema~mng per umt Medical Centers w/SUP 7 Traveler's accommodations are hm~ted to no more than 15 guest Limitations units L(9) Travelers' accommodabons, are L(14) Uses are hm~ted to no more than permitted, provided that 10,000 square feet of gross floor 1 The bus~ness-owner or manager shall area be reequ~red to reside on the property L(15) Uses are hm~ted to no more than occupied by the accommodation, or 5,000 square feet of gross floor area adjacent property per lot 2 That each accommodation umt shall L(21) Bakery and botthng areas not to have 1 off-street parking space, and the exceed 2,500 square feet Sales on owners shall have 2 parking spaces premises of products produced All spaces shall be ~n conformance w~th reequ~red ~n th~s zone Page 16 Development Code D~stncts - Permitted Uses & L~m~tat~ons February 12, 2001 DOWNTOWN UNIVERSITY CORE: DC-N - Downtown Commercial Nelghborhood Residential Land Use Categorms L~m~tatmns Attached S~ngle-fam~ly Dwelhngs L(6) Permitted only on 2nd story and Dwelhngs Above Businesses above, when an office, retail, or L~ve/VVork Units other permitted commercial use ~s In Duplexes the ground floor Commumty Homes for the D~sabled L(11) L~m~ted to s~t down only, no take-out Group Homes w/SUP service and no drive up service Multi-Family Dwelhngs w/L(6) permitted L~m~ted to no more than 100 seats and no more than 4,000 Commercial Land Uae Categories square feet of restaurant area Home Occupation L(13) Uses are hm~ted to no more than Bed and Breakfast 55,000 square feet of gross floor Retail Sales & Services w/L(13) area per lot Theaters less than 1,000 Seats L(14) Uses are hm~ted to no more than Restaurant or Pnvate Club w/L(11 ) 10,000 square feet of gross floor Professional Services and Offices area Laundry Fac~ht~es L(21) Bakery and bottling areas not to Commercial Parking Lots w/L(28) exceed 2,500 square feet Sales on Administrative or Research Fac~ht~es w/L(14) premises of products produced Broadcasting or Production Studio required m th~s zone Temporary Uses w/SUP L(26) Uses are hm~ted to no more than 2,500 square feet of gross floor area Industrial Land Use Categories per lot Bakeries w/L(21) L(28) Use allowed as part of consohdated Botthng Plants w/L(21) parking plan Vetennary Chmcs w/L(26) Inst~tut,onal Land Uae Categories Basic Ut~ht~es w/SUP Cornrnun~ty Servme Parks and Open Space Churches Sem~-pubhc, Halls, Clubs, and Lodges Business / Trede Schools w/L(26) Adult or Child Day Care K~ndergarten, Elementary School M~ddle School Colleges w/SUP Hospitals Nursing Homes w/L(13) Medical Centers Mortuaries Page17 Development Code D str cts - Permitted Uses & L mltabons February 12, 2001 DOWNTOWN UNIVERSITY CORE DC-G - Downtown Commerc,al General Residential Land Use Categories Nursing Homes Attached S~ngle-famlly Dwelhngs Medmal Centers Dwellings Above Businesses Mortuaries Live/Work Units Duplexes Limltatmns Community Homes for the Disabled L(6) Permitted only on 2nd story and Group Homes w/SUP above, when an off~ce, retail, or Multi-Family Dwellings w/L(6) other permitted commercial use ~s ~n the ground floor Commercial Land Uae Categories L(20) Permitted, but outdoor storage of Home Occupation autos prohibited Hostels L(28) Use allowed as part of consohdated Hotels parking plan Bed and Breakfast Retail Sales & Services Theaters less than 1,000 Seats Restaurant or Private Club Professional Services and Offmes Qu~ck Vehicle Servicing Vehicle Repair Auto & RV Sales w/L(20) Laundry Fac~ht~es Indoor Recreation Major Event Entertainment w/SUP Commercial Parking Lots w/L(28) Administrative or Research Fac~ht~es Broadcasting or Production Studio Temporary Uses w/SUP Industrial Land Use Categor, es Pnntlng / Pubhsh~ng Bakeries Botthng Plants Veterinary Chn~cs Institutional Land Use Categories Bastc Ut~ht~es w/SUP Community Service Parks and Open Space Churches Sem~-pubhc, Halls, Clubs, and Lodges Bus~ness / Trade Schools Adult or Child Day Care Colleges Hospitals Page 18 Development Code D~stricts - Permitted Uses & Limitations February 12, 2001 COMMUNITY MIXED USE CENTER, CM-G - Community Mixed Uee General Residential Land Use Categories L~mitahons L~ve/Work Units L(6) Permitted only on 2nd story and Commumty Homes for the D~sabled above, when an office, retail, or Mulb-Famlly Dwelhngs w/L(6) other permitted commerc;al use ~s ~n the ground floor Commercial Land Use Categories Hostels Hotels Motels Bed and Breakfast Retail Sales &Servtces Theaters less than 1,000 Seats Restaurant or Pnvate Club Drive-through Fac~hty Professional Services and Offices Qu~ck Vehicle Servicing Vehicle Repair Auto & RV Sales Laundry Faciht~es Commem~al, Outdoor Recreation Indoor Recreation Major Event Entertainment w/SUP Commercial Parking Lots Adm~mstrat~ve or Research Fac~ht~es Broadcasting or Production Studio Temporary Uses w/SUP Industrml Land Use Categories Pnnt~ng / Publish~ng Bakenes Botthng Plants Veterinary Climcs Institutional Land Use Categories Basic Ubhties w/SUP Commumty Service Parks and Open Space Churches Sem~-publ~c, Hails, Clubs, and Lodges Business / Trade Schools Adult or Child Day Care Colleges Medical Centers Mortuaries Page 19 Development Code D~stncts - Permitted Uses & L~m~tat~ons February 12, 2001 COMMUNITY MIXED USE CENTER CM-E - Community Mixed Use Employment Residential Land Use Categories Limitations Community Homes for the D~sabled L(6) Permitted only on 2nd story and Mult~-Family Dwelhngs w/L(6) above, when an office, retail, or other permitted commercial use ~s ~n Commercial Land Use Categories the ground floor Hotels L(14) Uses are hm~ted to no more than Motels 10,000 square feet of gross floor Retail Sales & Services w/L(14) area Restaurant or Private Club w/L(14) L(25) If proposed use is w~thln 200 feet of Drive-through Fac~hty a resldenbal zone, approval ~s Professional Services and Offices subject to a Special Use Permit Qu~ck Vehicle Servicing Vehicle Repair Auto & RV Sales Laundry Fac~ht~es Indoor Recreation Commercial Parking Lots Administrative or Research Fac~ht~es Broadcasting or Producbon Studio Temporary Uses w/SUP Industrial Land Use Categories Printing / Pubhsh~ng w/L(25) Bakeries w/L(25) Botthng Plants Manufacture of Non-odoriferous Foods w/L(25) Veterinary Chmcs Institutional Land Use Categories Basic Utlht~es w/SUP Commumty Service Parks and Open Space Churches Semi-pubhc, Halls, Clubs, and Lodges Business / Trade Schools Colleges Medical Centers Mortuaries Page 20 Development Code Distncts - Permitted Uses & L~m~tahons February 12, 2001 REGIONAL ,MIXED USE CENTERS: owners shall have 2 parking spaces RCR-I - Regional Center Realdential t All spaces shall be m conformance w~th the reequlrements of the Off- Res,dential ~Land Use Categories Street Parking secbon of th~s Attached Single-family Dwelhngs Chapter Dwelhngs Above Businesses 3 That only one ground orwall s;gn, L~ve/Work Units constructed of a non-plasbc Community Homes for the Disabled material, non-interior ;llum~nated of 4 Group Homes w/SUP sq ft max;mum s~ze be allowed Mulb-Fam~lylDwelhngs Any exterior ~llum~natlon of s~gnage shall be ~nstalled such that ~t does Commercial Land Use Categories not d~rectly ~llum~nate any residential Home Occupation structures adjacent or nearby the Bed and Breakfast w/L(8) travelers' accommodabon Retail Salesl& Services w/L(13) 4 That the number of accommodation Restaurant or Private Club w/L(11 ) umts allowed shall be proporbonal to Professlonal, Services and Offices w/SUP the permitted density of the zone Laundry Faoilitles Each traveler's accommodabon unit Commem~allOutdoor Recreation w/SUP shall be counted as 0 6 umts for the Adm~mstrabve or Research Faclht~es w/SUP purpose of calculating the permitted Broadcasbng or Production Studio w/SUP number of traveler's Temporary Uses w/SUP accommodations 5 All traveler's accommodations shall Industrial Land Use Categories be w~th~n 200 feet of a collector or Vetennary Clinics w/SUP artenal Street designations shall be as determined by the C~ty of Denton Institutional Land Use Categories Comprehensive Plan D~stances Basic Ubhtles w/SUP shall be measured wa pubhc street Commumty Service or alley access to the s~te from the Parks and Open Space arterial Churches 6 Excluding the bus~ness-owner's umt Seml-pubhc, Halls, Clubs, and Lodges and the area of the structure it w~ll Adult or Child Day Care occupy, there must be at least 400 Kindergarten, Elementary School sq ft of gross Interior floor space Middle School remaining per umt High School]w/SUP 7 Traveler's accommodabons are Nursing Homes hm~ted to no more than 8 guest Medical Centers w/SUP un~ts L(11 ) L~m~ted to s~t down only, no take-out Limitations service and no drive up service L(8) Travelers' accommodations, are permitted L~m~ted to no more than permitted, provided that 100 seats and no more than 4,000 1 The business-owner or manager shall square feet of restaurant area be required to reside on the property L(13) Uses are hm~ted to no more than occupied by the accommodation, or 55,000 square feet of gross floor adJacent property area per lot 2 That each accommodation unit shall have t off-street parking space, and the Page 21 Development Code D~str~cts - Permitted Uses & L~m~tat~ons February 12, 2001 REGIONAL MIXED USE CENTERS, 2 That each accommodation unit shall RCR-2 - Regional Center Residential 2 have 1 off-street parking space, and the owners shall have 2 parking Residential Land Use Categories spaces All spaces shall be ~n Attached S~ngle-fam~ly Dwelhngs conformance w~th the requirements Dwelhngs Above Businesses of the Off-Street Parking section of L~ve/VVork Umts this Chapter Commumty Homes for the D~sabled 3 That only one ground or wall s~gn, Group Homes w/SUP constructed of a non-plastic Multi-Family Dwellings material, non-~ntenor ~llum~nated of 4 sq ft maximum s~ze be allowed Commercial Land Use Categorms Any exterior ~llum~nat~on of s~gnage Home Occupation shall be ~nstalled such that ~t does Hostels not d~rectly ~llum~nate any residential Bed and Breakfast w/L(9) structures adjacent or nearby the Retail Sales & Services w/L(13) travelers' accommodation Restaurant or Pnvate Club w/L(11) 4 That the number of accommodation Professional Servmes and Offices w/SUP un~ts allowed shall be proportional to Laundry Fac~ht~es the permitted density of the zone Commercial Outdoor Recreation w/SUP Each traveler's accommodation unit Adm~mstrabve or Reseamh Fac~ht~es w/SUP shall be counted as 0 6 umts for the Broadcasting or Production Studio w/SUP purpose of calculating the permitted Temporary Uses w/SUP number of traveler's accommodations Industrial Land Use Categories 5 All traveler's accommodations shall Veterinary Chn~cs w/SUP be w~th~n 200 feet of a collector or arterial Street designations shall be Institutional Land Use Categories as determined by the C~ty of Denton Basic Ut~htles w/SUP Comprehensive Plan D~stances Commumty Service shall be measured v~a pubhc street Parks and Open Space or alley access to the s~te from the Chumhes arterial Sem~-pubhc, Halls, Clubs, and Lodges 6 Excluding the business-owner's unit Adult or Child Day Care and the area of the structure it will Kindergarten, Elementary School occupy, there must be at least 400 M~ddle School sq ft of gross ~nterior floor space High School w/SUP remaining per umt Nursing Homes 7 Traveler's accommodabons are Medical Centers w/SUP hm~ted to no more than 15 guest un~ts Limitations L(11) L~m~ted to s~t down only, no take-out L(9) Travelers' accommodations, are service and no drive up service permitted, provided that permitted L~m~ted to no more than 1 The business-owner or manager shall 100 seats and no more than 4,000 be reequ~red to reside on the property square feet of restaurant area occupied by the accommodation, or L(13) Uses are hm~ted to no more than adjacent property 55,000 square feet of gross floor area per lot Page 22 Development Code Distncts - Permitted Uses & L~m~tahons February 12, 2001 REGIONAL ,MIXED USE CENTERS: RCC-N - Regional Center Commercial Neighborhood Residential Land Use Categories Hospitals Attached Single-family Dwellings Nursing Homes Dwellings Above Businesses Medical Centers L~ve/VVork Units Mortuanes Commumty Homes for the D~sabled Group Homes w/SUP Limitations Multi-Family Dwellings w/L(6) L(6) Permitted only on 2nd story and above, when an office, retail, or Commercial Land Use Categories other permitted commem~al use ~s ~n Home Occupabon the ground floor Hostels L(9) Travelers' accommodations, are Hotels permitted, provided that Motels 1 The busmess-owneror manager Bed and Breakfast w/L(9) shall be required to reside on the Retail Sales & Services w/L(13) property occupied by the Theaters less than 1,000 Seats accommodation, or adjacent Restaurant or Private Club property Professional Services and Offices w/L(14) 2 That each accommodabon unit shall Qmck Vehicle Servicing have 1 off-street parking space, and Laundry Fac~lit~es the owners shall have 2 parking Indoor Recreation spaces All spaces shall be ~n Major Event Entertainment w/SUP conformance w~th the requirements Commercial Parking Lots of the Off-Street Parking section of Admln~strabve or Research Fac~l~bes w/L(14) th~s Chapter Broadcasbng or Producbon Studio 3 That only one ground or wall s~gn, Temporary Uses w/SUP constructed of a non-plastic matenal, non-~ntenor ~llum~nated of 4 Industrial Land Use Categories sq ft maximum s~ze be allowed Bakenes w/L(21) Any extenor ~llum~nabon of s~gnage Bottling Plants w/L(21 ) shall be ~nstalled such that ~t does Veterinary Clinics w/L(14) not d~rectly ~llum~nate any residential structures adJacent or nearby the Institutional Land Use Categories travelers' accommodation Basic Utilities w/SUP 4 That the number of accommodation Commumty Service umts allowed shall be proportional to Parks and Open Space the permitted density of the zone Churches Each traveler's accommodation unit Sem~-publ~c, Halls, Clubs, and Lodges shall be counted as 0 6 units for the Business / Trade Schools w/L(14) purpose of calculabng the permitted Adult or Child Day Care number of traveler's K~ndergarten, Elementary School accommodations M~ddle School 5 All traveler's accommodations shall High School be within 200 feet of a collector or Colleges artenal Street designations shall be Page 23 Development Code D~stncts - Permitted Uses & L~m~tatlons February 12, 2001 as determined by the C~ty of Denton Comprehensive Plan D~stances shall be measured wa public street or alley access to the s~te from the arterial 6 Excluding the business-owner's umt and the area of the structure it w~ll occupy, there must be at least 400 sq ft of gross ~ntenor floor space remaining per unit 7 Traveler's accommodations are hm~ted to no more than 15 guest umts L(13) Uses are hmlted to no more than 55,000 square feet of gross floor area per lot L(14) Uses are hm~ted to no more than 10,000 square feet of gross floor area L(21) Bakery and botthng areas not to exceed 2,500 square feet Sales on premises of products produced reequlred ~n this zone Page 24 Development Code D strlcts - Permitted Uses & L m taflons February 12, 2001 REGIONAL MIXED USE CENTERS' RCC-D - Regional Center Commercial Downtown Residential Land Use Categories H~gh School Attached Single-family Dwelhngs Colleges Dwelhngs Above Businesses Hospitals L~veNVork Umts Nursing Homes Commumty Homes for the D~sabled Medical Centers Group Homes w/SUP Mortuanes Multi-Family Dwelhngs w/L(6) Limitations Commercial Land Uae Categories L(6) Permitted only on 2nd story and Home Occupation above, when an office, retail, or Hostels other permitted commercial use is ~n Hotels the ground floor Bed and Breakfast L(14) Uses are hmlted to no more than Retail Sales & Services 10,000 square feet of gross floor Theaters less than 1,000 Seats area Restaurant or Private Club L(23) Light manufacturing of products sold Drive-through Fac~hty w/L(29) on site permitted, area of Professional Services and Offices manufacture not to exceed 5,000 Quick Vehicle Servicing w/L(29) square feet Vehicle Repair L(29) Permitted w~th~n 1,320 feet of a Auto and RV Sales w/L(29) freeway interchange as measured Laundry Facilities from the centerhne of the freeway Indoor Recreation Major Event Entertainment w/SUP Commero~al ,Parking Lots Adm~n~strabve or Research Fac~ht~es Broadcasbng or Production Studio Temporary Uses w/SUP Industrial Land Use Categories Bakeries Botthng Plants L~ght Manufacturing w/L(23) Veterinary Chmcs w/L(14) Institutional Land Uae Categories Basic Ubhtles w/SUP Community Service Parks and Open Space Churches Sem[-pubhc,, Halls, Clubs, and Lodges Business / Trade Schools Adult or Child Day Care M~ddle School Page 25 Development Code D~stncts - Permitted Uses & L~mltatlons February 12, 2001 EMPLOYMENT CENTERS EC-C - Employment Center Commercial Residential Land Use Categories Colleges None Permitted Hospitals Num~ng Homes Commercial Land Use Categorms Medical Centers Hostels Mortuanes Hotels Motels Limitations Retail Sales & Services L(32) Not allowed to locate adjacent to an Theaters less than 1,000 Seats arterial, w;th~n 1,000 feet of another Restaurant or Private Club Sexually Oriented Bus~ness, w~th~n 1,000 Dnve-through Fac~hty feet of a daycare or school, and, 1,000 feet Professional Services and Offices of any residential use Qu;ck Vehicle Servicing Vehicle Repair Auto and RV Sales Laundry Fac~hbes Commercial Outdoor Recreabon Indoor Recreabon Major Event Entertainment w/SUP Commercial Parking Lots Admlmstrat~ve or Reseamh Facilities Broadcasting or Production Studio Sexually Oriented Business w/SUP & L(32) Temporary Uses w/SUP Industrial Land Use Categories Pnntmg/Pubhshlng Bakeries Bottling Plants Manufacture of Non-odoriferous Foods Light Manufacturing Wholesale Sales Wholesale Nurseries Self-Service Storage Kennels Vetennary Clinics Institutional Land Use Categories Basic Utihties Community Service Parks and Open Space Chumhes Seml-pubhc, Halls, Clubs, and Lodges Business / Trade Schools Adult or Child Day Cam Page 26 Development Code DIstncts - Permitted Uses & L m tatmns February 12, 2001 EMPLOYMENT CENTERS. EC-I - Employment Center Industrial Residential Land Use Categories Bus~ness / Trade Schools None Permitted Adult or Child Day Care Colleges Commercial Land Use Categorms Mortuanes Hostels Hotels Limitations Bed and Breakfast w/L(14) L(14) Uses are hm~ted to no more than Theaters less than 1,000 Seats w/L(14) 10,000 square feet of gross floor Restaurant or Private Club area Dnve-through Fac~hty L(32) Not allowed to locate adjacent to an Professional Services and Offices artenal, w~th~n 1,000 feet of another Quick Vehicle Servicing Sexually Onented Bus~ness, within Vehicle Repair 1,000 feet of a daycare or school, Auto and RV Sales and, 1,000 feet of any residential Laundry Fac~ht~es use Indoor Recreation Major Event Entertainment w/SUP Commercial Parking Lots Administrative or Research Fac~ht~es Broadcasting or Production Studio Sexually Oriented Business w/SUP & L(32) Temporary Uses w/SUP Industrial Land Use Categories Pnnt~ng/Pubhsh~ng Bakeries Botthng Plants Manufacture of Non-odonferous Foods Light Manufactunng Wholesale Sales Wholesale Nursenes D~stnbut~on Center Outdoor Storage Wholesale Storage and D~stnbutlon Self-Servlce Storage Construction Matenals Sales Kennels Vetennary Clinics Inst~tutional Land Use Categories Basic Ut~ht~es Cornmumty Service Parks and Open Space Churches Sem~-pubhc, Halls, Clubs, and Lodges Page 27 Development Code D~stncts - Permitted Uses & L~mltat~ons February 12, 2001 INDUSTRIAL CENTERS IC-E - Industrial Centers Employment Residential Land Use Categor,es Colleges None Permitted Medical Centers Mortuaries Commercial Land Use Categor, es Hotels LIm,tatmns Motels L(14) Uses are hm~ted to no more than Restaurant or Pnvate Club w/L(14) 10,000 square feet of gross floor Professional Services and Offices area Qu~ck Vehicle Servicing L(25) If proposed use is w~th~n 200 feet of Vehicle Repair a residential zone, approval ~s Auto and RV Sales subject to a Special Use Permit Laundry Fac~ht~es L(32) Not allowed to locate adjacent to an Indoor Recreation arterial, w~th~n 1,000 feet of another Major Event Entertainment w/SUP Sexually Oriented Business, w~thm Commercial Parking Lots 1,000 feet of a daycare or school, Administrative or Research Faclht~es and, 1,000 feet of any residential Broadcasting or Production Studio use Sexually Oriented Bus~ness w/SUP & L(32) Temporary Uses w/SUP Industrial Land Use Categories Pnntlng/Pubhshlng w/L(25) Bakeries w/L(25) Botthng Plants Manufacture of Non-odoriferous Foods w/L(25) Light Manufactunng Wholesale Sales Wholesale Nursenes Distnbut~on Center w/SUP Outdoor Storage w/SUP Wholesale Storage and D~strlbutlon Self-Service Storage Construction Materials Sales Kennels Veterinary Chmcs Institutional Land Use Categories Basic Ut~hbes Commumty Service Parks and Open Space Churches Seml-pubhc, Halls, Clubs, and Lodges Business / Trade Schools Adult or Child Day Care Page 28 Development Code D~stncts - Permitted Uses & L~m~tat~ons February 12, 2001 INDUSTRIAL CENTERS' lC-(} - Industrial Centers General Residential Land Use Categories Limitations None Permitted L(14) Uses are limited to no mom than 10,000 square feet of gross floor Commercial Land Use Categories area Restaurant or Pnvate CIubw/L(14) L(25) If proposed use ~s w~th~n 200 feet of Professional Sen/ices and Offmes a residential zone, approval ~s Quick Vehicle Servicing subject to a Special Use Permit Vehicle Repair L(32) Not allowed to locate adjacent to an Auto and RV Sales artenal, within 1,000 feet of another Laundry Faclhbes Sexually Oriented Bus~ness, w~th~n Commercial Parking Lots 1,000 feet of a daycare or school, Admlmstratlve or Research Fac~ht~es and, 1,000 feet of any residential Broadcasting or Production Studio use Sexually Oriented Business w/SUP & L(32) Temporary Uses w/SUP Industrial Land Use Categories Pnntlng/Pubhshlng w/L(25) Bakenes Botthng Plants Manufacture of Non-odoriferous Foods Food Processing L~ght Manufactunng Heavy Manufactunng w/SUP Wholesale Sales Wholesale Nursenes D~stnbutlon Center Outdoor Storage Wholesale Storage and Distribution Self-Service Storage Construction Matenals Sales Junk Yards and Auto Wrecking w/SUP Kennels Veterinary Chmcs Sanitary Landfills, Commemlal Incinerators, & Transfer Stations w/SUP Institutional Land Use Categories Basra Utlhtles Commumty ServIce Parks and Open Space Churches Sem~-pubhc, Halls, Clubs, and Lodges Business / Trade Schools Page 29