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HomeMy WebLinkAbout2016-08-09 Agenda with BackupTuesday, August 9, 2016 City of Denton Meeting Agenda City Council 1:00 PM City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Work Session Room After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, August 9, 2016 at 1:00 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: 1. Work Session Reports A. ID 16-1049 Receive a report, hold a discussion, and provide staff with direction concerning audit activities and the City Auditor position. Attachments: Exhibit 1 Memo to Carla Romine regarding Internal Audit Information Exhibit 2 Presentation B. ID 16-958 Receive a report, hold a discussion and provide staff with direction concerning the extension of Ruddell Street at Mingo Road and a potential joint stormwater project with the Meadow Oaks development. Attachments: Exhibit 1 Ruddell St. Extension Area Map C. A16 -0003a Receive a report, hold a discussion and provide staff direction regarding a Pre -Annexation Development Agreement between the City of Denton and Ryan Capital Partners, Ltd., concerning an approximately 80.9 -acre property located on the south side of Ryan Road and east of Andrew Street. Attachments: Exhibit 1 - Location Map Exhibit 2 -Zoning Map Exhibit 3 - PAA Boundary Map Exhibit 4 - Tree Preservation Plan Exhibit 5 - Tract 1A Concept Plan Exhibit 6 - Tract 1C Detailed Plan Exhibit 7 - Amenity Center Exhibit 8 - Fencing Exhibit 9 - Entry Monument Exhibit 10 - Hardscape & Landscape Exhibit 11 - PPAv DDC Comparison Table D. ID 16-995 Receive a report; hold a discussion, and give staff direction regarding the FY 2016-17 City Manager's Proposed Budget, Capital Improvement Program, and Five -Year Financial Forecast. City ofDenton Page 1 Printed on 8/5/2016 City Council Meeting Agenda August 9, 2016 Following the completion of the Work Session, the City Council will convene in a Closed Meeting to consider specific items when these items are listed below under the Closed Meeting section of this agenda. The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Government Code, as amended, or as otherwise allowed by law. 1. Closed Meeting: A. ID 16-964 Deliberations Regarding Certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086. Receive a presentation from staff regarding public power competitive and financial matters related to the City's participation in, and the overall operational and financial aspects of, the Texas Municipal Power Agency; discuss and deliberate strategies regarding same; discuss, deliberate and provide staff with direction. B. ID 16-996 Certain Public Power Utilities: Competitive Matters --- Under Texas Government Code, Section 551.086. Receive competitive public power competitive information and financial information from staff regarding the proposed FY 2016-2017 operating budget for Denton Municipal Electric ("DME") including without limitation, proposed rates for DME for FY 2016-2017, expected revenues, expenses, commodity volumes, and financial commitments of DME; discuss, deliberate and provide staff with direction. C. ID 16-1080 Consultation with Attorneys - Under Texas Government Code, Section 551.071 Consultation, discussion, deliberation, and receipt of information from the City's attorneys involving legal matters relating to the annexation or extension/renewal of non -annexation agreement for a potentially eligible property, and to provide the City Attorneys with direction, where a public discussion of these legal matters would clearly conflict with the duty of the City's attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. Following the completion of the Closed Meeting, the City Council will convene in a Special Called Meeting to consider the following items: 1. ITEMS FOR INDIVIDUAL CONSIDERATION A. ID 16-987 Consider approval of a resolution of the City Council of the City of Denton, Texas placing a proposal on the September 20, 2016, City Council public meeting agenda to adopt a 2016 Tax Rate that will exceed the lower of the rollback rate or the effective tax rate; calling two public hearings on a tax increase to be held on August 23, 2016, and September 13, 2016 and calling a budget public hearing on the Fiscal Year 2016-2017 Annual Program of Services of the City of Denton to be held on September 13, 2016; requiring publication of notices of the public hearings in accordance with the law; requiring the posting of the notices of the public hearings on the City's Internet website; requiring the posting of the notices on the City's public access channel; and providing an effective date. City ofDenton Page 2 Printed on 8/5/2016 City Council Meeting Agenda August 9, 2016 Attachments: Exhibit 1 - Resolution 2. CONCLUDING ITEMS A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the day of , 2016 at o'clock (a.m.) (p.m.) CITY SECRETARY NOTE: THE CITY OF DENTON CITY COUNCIL WORK SESSION ROOM IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 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. City ofDenton Page 3 Printed on 8/5/2016 City Hall City of Denton 215 E. McKinney St. - Denton, Texas 76201 www.cityofdenton.com , DENTON File #: ID 16-1049, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: City Manager's Office CM/ ACM: Bryan Langley Date: August 9, 2016 SUBJECT Receive a report, hold a discussion, and provide staff with direction concerning audit activities and the City Auditor position. BACKGROUND During recent budget discussions, the City Council discussed the possibility of hiring a City Auditor position. Additionally, Council Member Gregory requested some information regarding the City Auditor position and the internal audit activities currently being conducted in the City of Denton. In Exhibit 1, I have attached a memorandum I prepared for Carla Romine, Director of Human Resources, regarding these issues. This memorandum was provided to the Council Appointed Performance Review (CAPR) Committee at a recent meeting. In the City Manager's FY 2016-17 Proposed Budget, an additional $100,000 has been recommended for internal audit services. The purpose of this agenda item, therefore, is to review this information with the entire Council, and discuss potential options regarding how these funds should be used. The attached presentation (Exhibit 2) will be used to facilitate this conversation. STRATEGIC PLAN RELATIONSHIP The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Organizational Excellence Related Goal: 1.1 Manage financial resources in a responsible manner EXHIBITS Exhibit 1 - Memorandum to Carla Romine concerning internal audit activities Exhibit 2 - Presentation City of Denton Page 1 of 2 Printed on 8/5/2016 povveied by I_egivt9i IN File #: ID 16-1049, Version: 1 Respectfully submitted: Bryan Langley Assistant City Manager City of Denton Page 2 of 2 Printed on 8/5/2016 povveied by I_egist9i I;, MEMORANDUM DATE: July 8, 2016 TO: Carla Romine, Director of Human Resources FROM: Bryan Langley, Assistant City Manager COPY: Howard Martin, Interim City Manager SUBJECT: Internal Audit Activities and City Auditor Information Recently, Council Member Gregory requested some information regarding the City of Denton's Internal Audit activities over the past few years. Additionally, Mr. Gregory requested information regarding City Auditor positions in other similar cities. Regarding the Internal Audit activities, I have attached a memorandum (Attachment 1) that I provided to the City Manager which explains our work in this area from 2010 to 2013. Since this time, we have also completed several other internal audits/business process reviews including the following areas: ➢ Review of fleet fuel tank procedures ➢ Lean Government Initiative ➢ Payroll and Timekeeping Controls ➢ Off -boarding of employees and computer access controls ➢ Sales tax audit On average, we have spent approximately $75,000 to $150,000 each year on contracted internal audits over the past few years. I am also attaching a summary of the Lean Government process reviews that have been conducted (Attachment 2), and the estimated savings that have been realized as a result of these efforts. To date, we estimate that the Lean program has saved the City over $600,000 and 7,300 hours in staff time. These audits and process reviews are in addition to the external financial audits which are done each year. Also, to provide some additional details regarding our efforts to review internal processes, I have attached an article I wrote for the May edition of the TML Texas Town & City magazine (Attachment 3). This article does a good job of illustrating our efforts in this regard for the Lean, LEEP, and Innovation programs. "Dedicated to Quality Service" www.cityofdenton.com Memorandum from Bryan Langley to Carla Romine July 8, 2016 Page 2 of 2 Mr. Gregory also requested a list of similar cities which have and do not have City Auditor positions, and he requested the salaries for these positions. This information is provided in Attachment 4. Additionally, Mr. Gregory requested the total compensation for last City Auditor employed in Denton. The total compensation (salary and benefits) for the City Auditor was approximately $194,000. A Senior Auditor also reported to this position, but clerical support was provided by other City staff. If you need anything further, or have additional questions, please let me know. Best regards, Bryan Langley Assistant City Manager Attachment 1 MEMORANDUM DATE: January 28, 2013 TO: George C. Campbell, City Manager FROM: Bryan Langley, Assistant City Manager SUBJECT: Internal Audit Activities As you know, the City of Denton has made a number of significant expenditure reductions over the past several years to offset the economic challenges that we have faced. As part of this approach, the City implemented a personnel vacancy management program in FY 2010-11. The purpose of the program is to "manage" vacancies so that the highest priority positions in the organization are filled while others remain unfilled to generate financial savings. The program has been very successful, and it has generated significant savings over the past two years (approximately $1.45 million of savings in FY 2010-11 and $0.9 million in FY 2011-12). Approximately 22 positions were left vacant in FY 2010-11, and the equivalent of 14 positions were identified in the FY 2011-12 Adopted Budget. One such position is the Internal Auditor which has been left vacant since March 2010. While the City of Denton does not currently have an Internal Auditor position, the organization is still required to actively assess and monitor internal controls. As such, funding has been established in the Internal Audit budget to provide resources for management to pursue outside assistance when circumstances dictate that necessity. In addition, with the city-wide reorganization in October 2010, the role of the Chief Financial Officer was expanded to include the responsibility for organizational risk assessment and business process review. Consistent with this organizational structure, and in response to our fiduciary duties to the organization, we have pursued a number of initiatives to 1) improve our internal controls, 2) protect the organization, 3) improve the efficiency and effectiveness of our operations, and 4) further evaluate key activities over the past several months. Below is a list of the key items that we have completed or are in the process of completing: ➢ Assessment of internal control framework in accordance with the Committee of Sponsoring Organizations Enterprise Risk Management framework (COSO) - Completed in July 2010. "Dedicated to Quality Service" www.cityofdenton.com Attachment 1 ➢ Entity -Wide Risk Assessment —Completed in August 2010. ➢ Special Events Economic Impact Analysis -Completed in August 2010. ➢ Entity -Wide Data Analysis to assess internal controls, conflicts of interest, operational efficiencies, and other matters - Completed in September 2010. ➢ Red flag Act Compliance Audit —Completed in September 2010. ➢ Validation of fixed asset system configuration and depreciation calculations — Completed in October 2010. ➢ Operational review of Warehouse Operations —Completed in November 2010. ➢ Assessment of Utility Credit and Collections —Completed in November 2010. ➢ Development of Internal Control Monitoring Plan — Completed in January 2011. ➢ Hotel tax audit — Phase I completed in July 2011; Phase II and III scheduled for completion in 2012 and 2013. ➢ Payroll Process Review — Completed in September 2011. ➢ Review of Property Tax Exemptions, Utility Billing Data, and Vendors that have Outstanding Debts with the City — Scheduled to be Complete in November 2011. ➢ Franchise fee audits for Charter Communications, Atmos Gas, and Cosery Electric — Completed in late 2011. ➢ Audit of sales tax collections — Completed in November 2012. ➢ Verizon franchise fee audit — Completed in November 2012. ➢ Review of Purchasing Procedures — Completed in December 2012. ➢ Audit of overtime payments and procedures — Completed in January 2013. ➢ Audit of Cash Handling procedures — Expected to be completed in February 2013. ➢ Prepare entity -wide Data Analysis to assess internal controls, conflicts of interest, operational efficiencies, and other matters — Expected to be completed by summer 2013. ➢ Audit procurement card program - Expected to be completed by summer 2013. Attachment 1 This memorandum is provided to keep you advised of efforts to complete the kinds of organizational/operational analysis that would otherwise be completed with the assistance of the Internal Audit office at City Management's request. If you have any questions, or need additional information, please do not hesitate to contact me. 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After all, employees are the core of everything we do in local government, and our staff knows better than any- one how to improve what they do. So how do we engage employees to share solutions and have management sup- port those efforts? In response to this question, the City of Denton created the following process and workforce improvement programs to engage our employees and help us tackle various organi- zational and community challenges: Lean Government Innovation Program Leadership Excellence and Enhancement Program (LEEP) Collectively, these programs attempt to encourage creative thinking, improve efficiency and productivity, and engage employees in continuous quality improvement. As part of this approach, a fundamental objective is to improve cus- tomer service and satisfaction, and outcomes for our citi- zens. Below is a brief explanation of each program. Lean Government The City of Denton is experiencing tremendous growth. The current population in Denton is approximately 125,000, but the city is on track to experience a 6o percent increase in population to more than 200,00o by 2030. This growth will place great demands on the entire municipal organization including our city -owned utilities, public safety operations, recreation and leisure activities, and other general govern- ment services. To meet this demand, the city intends to have controlled growth in our capabilities by innovating and reinventing ourselves rather than just adding equipment, staff, and layers of bureaucracy. We implemented a "Lean Government" management model to ensure that services are provided in the most effective and economical way and to minimize or elimi- nate waste. Denton's Lean journey applies methodologies proven in manufacturing, health care, and other service industries to remove redundant and inefficient processes and enhance skills to provide outstanding customer ser- vice. This program empowers employees to find solutions, develop programs, and enhance processes that result in service improvements and cost savings. Further, the pro- gram allows users from different departments to work together in finding solutions. These interdepartmental rela- tionships will further integrate our employees so that they can collectively embrace future problem -solving initiatives. Lean methodologies are a series of techniques such as data analysis, swim lanes, process mapping, and asking probing questions to get past the surface level of an issue and determine the root cause of obstacles or delays. The city initiated the Lean program in 2014 with the assistance of the Quality and Productivity Improvement Center (APIC, LLC). T'XAS TOWN & CITY .20 MAY 2016 Attachment 3 Since strong collaboration is required to successfully develop ideas, we created an online forum Where employees can suggest, consider, and discuss potential ideas. As entries are submitted, employees are able to comment in the electronic forum on the strengths and Weaknesses of the r. All f Y1111 idea. Additionally, suggestions to improve the idea can also be submitted and considered by other employees. Finally, 1". N_ v- { When the top ideas are determined, employees formally present their program suggestions to the management team �°R for consideration and ask for any additional feedback prior to implementation. Training in the methodology was provided to executive staff and select mid-level managers who would serve as Lean coaches throughout the organization. Staff identified several areas that could have a high impact on productivity if improved, and conducted week-long "kaizen" events with teams of employees to improve the processes. In addition, many smaller, one- to two- day projects have been initiated in several departments. Lean, however, is not just about the projects - it is about creating a culture of curiosity in how operations can be improved and embracing these opportunities. To date, the Lean tools have been used to improve pro- cesses in several operational areas including utility bill- ing, accounts payable, procurement, engineering devel- opment review, and planning activities. These improve- ments resulted in a savings to the city of $613,000, in both hard and soft costs, and more than 7,310 hours of staff time. Perhaps more importantly, these process improvements have allowed our staff to focus their time on more value-added activities, which ultimately improve service to our citizens. Innovation Program The City of Denton also launched the "Employee Innovation Program" in 2014 to encourage employees to submit ideas that could improve city operations. The program offers incentives and recognition to encourage staff to suggest improvements that can have a meaningful impact on improving a program, service, and/or process in order to create new value for the community. During the inaugural Innovation Program, 46 ideas Were submitted, and approximately 17o employees participated in the discussion about improving and/or implementing the suggested items. As a result of employee comments and suggestions, some ideas Were removed from consideration While others advanced in the process. The following five ideas were implemented as part of the initial phase of the program: 1. A discounted dependent care solution to improve employee retention 2. An online employee forum 3. A call queue notification solution to provide better customer service T'XAS TOWN & CITY • 2 1 • MAY 2016 Attachment 3 4. Software to eliminate the need for multiple pass- words to the various city technology systems 5. Alternative methods to reduce the cost of underutilized city vehicles The implementation of these ideas will provide substan- tial benefits to the organization in the future. The second round of the Innovation Program began in late 2015. To date, more than 6o ideas have been submitted and more than 235 employees have participated, which is a 39 percent increase in participation from the first year. Currently, staff is in the process of examining several pos- sible ideas for implementation including developing a map of businesses coming soon to the community; processing expense and travel authorizations electronically; recog- nizing outstanding employees; and using a smart phone application to push notifications to employees and citizens. The city expects to make a decision on these topics in the next several weeks, and a third round of the Innovation Program is planned to begin at the end of this year. Leadership Excellence and Enhancement Program The City of Denton identified the need to create a lead- ership development program to address a number of impending organizational challenges related to employ- ee retention and succession management. To address these issues, we created the Leadership Excellence and Enhancement Program (LEEP) in 2014, in collaboration with the University of North Texas. The program is designed to provide a small cross -departmental group of participants with the opportunity to focus on select leadership com- petencies. The purpose of this program is two -fold. First, it offers a formal program for developing leadership and management competencies in employees; and second, it provides a project task group to examine specific city issues and consider alternative and innovative ways to solve challenges. The program is a 12- to 18 -month commitment including approximately 104 hours of classroom training covering the following 13 competencies: Project Management Strategic Thinking Presentation Skills Leadership Customer Service Ethics and Trust Managerial and Personal Success Skills Implementing Organizational Change Personal Financial Planning and Management Innovation and Creative Thinking Delegation and Time Management Decision Making Conflict Resolution and Negotiation Participants also work in teams on projects that benefit the city. The purpose of the project is to integrate depart- ments and create a teamwork atmosphere so that partic- ipants can use their skills in solving problems and issues in the city. In the first LEEP class, participants developed and implemented a program focused on improving the aesthetics and image of the city through an enhanced right-of-way maintenance initiative. Additionally, a second team in the LEEP class created a program to improve per- formance and succession management. These employ- ees received input from various departments across the organization, and presented their findings and recom- mendations directly to the city council. The City of Denton began the second LEEP class in late 2015. This class has made substantial progress to develop a city -supported employee volunteer program for com- munity organizations and a centralized records archiving solution. It is expected that project recommendations will be provided to the city council in early 2017. In conclusion, the City of Denton has been successful in creating three separate employee engagement programs that collectively encourage employees to use creative thinking to improve our operations. In today's challenging economic environment, local governments frequently ask employees to simply do more with less. However, to do this effectively, employees must be given the tools, opportunities, and support to improve their oper- ations. The City of Denton has created this environment by engaging our employees in the Lean, Innovation, and LEEP programs.* T'XAS TOWN & CITY • 2 2 • MAY 2016 Ni N U M oc Z m � oc z z 00 O� " Q Ni N 000 M DD O a � PM p r*r � o U O O � 0 P64 lowl 41 LP -PM li i u r� O N W 7� O 4-J O O O c� 7� u 3� Im N V .4—j V E I -1 0 J Im El M O tic . rl U O � O U U � U O vi O 7d � O U to QJ c� 7� 7� a ¢ 7d C) a� El M �I 4� U U � -d � O U QJ j o O Ocn U U p S 75 a� Q cn _o 0 o v O � U bJJ 75 d OO 1 o U 4.1 0 U U � E v u 7� ai a) ci City Hall City of Denton 215 E. McKinney St. - Denton, Texas 76201 www.cityofdenton.com , DENTON File #: ID 16-958, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Engineering Services CM/ ACM: Jon Fortune Date: August 9, 2016 SUBJECT Receive a report, hold a discussion and provide staff with direction concerning the extension of Ruddell Street at Mingo Road and a potential joint stormwater project with the Meadow Oaks development. BACKGROUND The purpose of this item is to update the Council on the project status and preliminary alignment prior to holding community meetings, advise the Council of a potential joint stormwater project with the Meadow Oaks development, and obtain any direction or suggestions the Council might have at this time. The Extension of Ruddell Street at Mingo Road is a project in Proposition No. 1, Street Improvements of the 2014 Bond Program, which was approved by City voter referendum on November 4, 2014. The project involves an extension of the existing Ruddell Street from just north of Mingo Road, southerly and southwesterly to connect to the existing Ruddell Street, lying south of Mingo Road, near its intersection with Texas Street (see Exhibit 1). This project was deemed a high priority roadway project by the Streets Subcommittee of the Citizens Bond Committee and by the Bond Committee, due to two relatively unsafe entrances that currently exist to the City's Service Center (housing Water, Wastewater, Streets, Drainage, Parks & Recreation, and Traffic Operations, Materials Management (Purchasing and Distribution Center), Engineering, DME Communications and Fleet Maintenance). The westerly entrance is a circuitous route through a residential neighborhood along Frame, Paisley and Rose Streets. The northerly entrance is from Mingo Road to Willis Street across a fairly short and steep railroad crossing that is dangerous for low semi -trucks which have caught their undercarriages on the railroad crossing. The new alignment will provide a primary entrance from Mingo Road, with a much safer railroad crossing and avoiding neighborhoods. The new street extension will create a new railroad crossing, just south of the existing Mingo Road / Ruddell Street intersection. In order to obtain a Union Pacific Railroad permit for this crossing, the City will be required to close two existing crossings. It is proposed that the crossing at Mingo Road and Willis Street and the crossing at Mingo Road and Pertain Street be closed. Willis Street would be closed to public traffic, since it would only serve the City's Service Center. Pertain Street would be dead ended, with a cul-de-sac just south of the railroad, with the area served by an existing connection to Lattimore Street and the new Ruddell street Extension. City of Denton Page 1 of 3 Printed on 8/5/2016 povveied by I_egivt9i IN File #: ID 16-958, Version: 1 Preliminary design plans have been prepared for the project and are being reviewed at this time. Due to a large amount of surface stormwater that flows through the area of the street extension and the Service Center property, a fairly extensive stormwater system will be required for this street project. The design engineer for a new development (Meadow Oaks Subdivision, lying uphill and east of the City's Service Center property, north of Paco Trail and west of Autumn Oak Drive) became aware of the City's plans for the Mingo Road extension and approached City staff about a potential joint stormwater project. Basically, the developer proposes to connect his stormwater system to the City's Ruddell street extension stormwater system, donate a heavily treed strip of land to the City, which could serve as a vegetative screen of the City's Service Center uses from adjacent residential development, and pay all cost increases caused by the addition of his development's stormwater. The developer would gain additional lots within his development; thus providing additional future City tax base. OCTEONS I . Proceed with implementing the Ruddell Street Extension, as currently proposed. 2. Proceed with implanting the Ruddell Street Extension, as modified by Council direction. RECOMMENDAT EON Approval of Option I - Proceed with implementing the Ruddell Street Extension, as currently proposed. EST 2gATED 6C C EDU CE D EIEROJECT Design is scheduled to be completed this calendar year. Construction scheduling will depend on receipt of the UPRR railroad crossing permit. ERDR [ACT DN[RECEEC X=E=IBEErdEX= C === • City voter referendum approval of 2014 Bond Program on November 4, 2014. C 6CA C [IN CORMAT EON The 2014 Bond Program provided a budget of $5,780,000 for design, right-of-way acquisition and construction. B m [LN CORMAT EON N/A, at this time. Project is in the design phase. STRATEG [U =CAN [RE CAT mNS C The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Public Infrastructure Related Goal: 2.2 Seek solutions to mobility demands and enhance connectivity ECCEBCT Ruddell Street Extension Area Map City of Denton Page 2 of 3 Printed on 8/5/2016 povveied by I_egist9i I;, File M ID 16-958, Version: 1 Respectfully submitted: John T. 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McKinney St. - Denton, Texas 76201 www.cityofdenton.com , DENTON File #: Al 6-0003a, Version: 1 Legislation Text AGENDA INFORMATION SHEET DEPARTMENT: Department of Development Services ACM: Jon Fortune DATE: August 9, 2016 SUBJECT Receive a report, hold a discussion and provide staff direction regarding a Pre -Annexation Development Agreement between the City of Denton and Ryan Capital Partners, Ltd., concerning an approximately 80.9 -acre property located on the south side of Ryan Road and east of Andrew Street. BACKGROUND On June 2, 2016, the City Council granted a second extension of the existing Non -Annexation Agreement (NAA) to delay annexation of the subject property while staff and the developer collaborated on a Pre - Annexation Agreement (PAA) to allow the property to remain in the City's Extraterritorial Jurisdiction (ETJ) in return for the City's regulation of land uses and design standards for the site. PAA's are contracts between the governing body of a municipality and the owner of property in the ETJ and are permitted under Texas Local Government Code Section 212.172. They allow a land owner to continue their ETJ status while extending a municipality's planning authority over the property. The agreements typically regulate the following: • Land use and development regulations • Provide for infrastructure, including streets, drainage, water, wastewater, and other utilities • Environmental regulations • Annexation or terms of annexation • Other lawful terms agreed upon The proposed PAA is nearing completion and staff is prepared to present details of the development plan and to receive feedback on the agreement from the City Council prior to the expiration of the NAA on September 4, 2016. A regular session item to consider approval of the PAA is scheduled for the August 16, 2016 City Council meeting. EXISTING CONDITIONS Located south of East Ryan Road and 370 feet west of Montecito Drive, the subject property is situated in the southern portion of the City generally between the Thistle Hills residential subdivision and the Good Samaritan Society Lake Forest Village. It has approximately 2000 feet of frontage on East Ryan Road and a small portion at the southwest corner of the PAA area also has frontage on Creekdale Drive. The site is currently used for agriculture and natural gas production, with the gas well production site located near the west property line. City of Denton Page 1 of 5 Printed on 8/5/2016 povveied by I_egivt9i IN File #: Al 6-0003a, Version: 1 The eastern portion and the western and southern perimeters are heavily treed. A creek with a small pond flows north -south across the center of the site that is protected by various environmental protections including FEMA floodplain and Stream Buffer, Water Related, and Upland Habitat Environmentally Sensitive Area (ESA). Land uses surrounding the subject property include an elementary school, a park, and elderly housing; however the primary surrounding land use is single-family residential. Development patterns for the residential uses vary from large -lot, low density estate homes to medium density homes with a suburban character. The residential development has progressed gradually, resulting in a fragmented pattern with uneven connectivity between subdivisions. The central location of the subject property within the surrounding residential mix supports a development of varied housing styles and densities, as well as future connectivity, thereby potentially improving the level of service of roadways abutting these developments. PROPOSED PRE -ANNEXATION AGREEMENT The PAA divides the property into four distinct areas intended to be owned and developed independently. The terms and conditions of each Tract are outlined below: Tract 1A Approximately 14.434 acres in size, Tract IA is located on the south side of Ryan Road to the west of the Good Samaritan elderly housing facility. Currently an undeveloped tract, the PAA includes a concept plan for development of the site with a variety of Elderly Housing types as a future extension of the Good Samaritan Village. Approval of a detailed plan will be required prior to any development. The site will also be required to preserve approximately 60% of the existing trees on site along the south and west property lines. Annexation of the site would be triggered upon application for a Final Plat to develop the property. Once annexed, the site would receive a Neighborhood Residential Mixed Use 12 (NRMU-12) District zoning classification, subject to the provision of the PAA. Tract 1B Approximately 20.533 acres in size, Tract 1B is located on the south side of Ryan Road immediately to the west of Tract IA. This tract is the location of the creek and associated ESA's. No incursion upon the ESA is proposed at part of the PAA. Currently an undeveloped property, the PAA would permit this tract to be subdivided into no more than three lots for single-family homes. Annexation would be instituted upon submittal of a Final Plat application. Once annexed, the site would receive a Neighborhood Residential 2 (NR -2) District zoning classification, subject to the provisions of the PAA. Tract 1C Approximately 47.47 acres in size, Tract 1C is located on the western portion of the subject property, adjacent to the Thistle Hills and Ryan Ranch Phase II residential subdivisions. The property is currently developed with a gas well that the developer has agreed to purchase so that it may be permanently plugged. Once plugged, the applicant intends to develop the site with 137 single-family houses. General Regulations of this Tract are as follows: Maximum Dwelling Units: 137 Minimum Lot Size: 7,200 square feet Minimum Lot Width: 60 feet Minimum Lot Depth: 110 feet City of Denton Page 2 of 5 Printed on 8/5/2016 povveied by I_egist9i I;, File #: Al 6-0003a, Version: 1 Minimum Front Yard Setback: 20 feet for front -entry, 25 feet for J -Swing entry Minimum Side Yard Setback: 5 feet Minimum Rear Setback: 15 feet Staff also negotiated design enhancements to the site that would not otherwise be required had the site been involuntarily annexed and zoned any of the Neighborhood Residential Districts. A comparison of the PAA design standards in comparison to the standard Denton Development Code regulations is attached as Exhibit 11. These enhancements include: Tree Preserve & Buffer - To buffer adjacent subdivisions, the developer will preserve a stand of trees within an approximately 100 -foot buffer on the west and south sides of the property. By incorporating the trees and natural landscape of the property into the design of the subdivision, approximately 65% of the existing tree canopy within Tract 1C will be preserved. A five foot wide meandering trail will also be provided through the western tree buffer so that the trees may remain accessible and enjoyable by the residents. Masonry Screening Wall & Entry Feature - To screen the subdivision and enhance the overall aesthetics of the public right-of-way, the developer will be provide a minimum six-foot masonry wall with stone columns along the frontage of Ryan Road for both Tracts I and 1C. In addition to the masonry wall, the entrance from Ryan Road will include enhanced landscaping and a wooden tower entry monument. Renderings of the proposed entry features are attached as Exhibit 9. Trail System & Linear Park - To take full advantage of the site's natural beauty and designed open space, the developer will provide a meandering trail system through the development as depicted in the detailed plan. This trail will begin at Ryan Road on the north side of the property and connect to Creekdale Drive utilizing two routes. The western trail will meander through the Tree Buffer and the eastern trail will parallel the creek to the east of Tract IC. The two trails will connect in the middle of the development through an east -west linear park over the site of the plugged gas well. To enhance the safety and security of the trail users, decorative lighting will be provided and wrought iron fences for all property lines adjacent to open spaces. A detailed plan of the proposed trail system, fencing, and examples of the decorative lighting are attached. Amenity Center - The development will include a community pool and playground on the northern end of the tract. Renderings of the amenity center are attached as Exhibit 7. Building Materials - To ensure a high quality housing product, the developer shall provide a minimum masonry requirement of 90% for front facades and 75% for side and rear facades. This is in contrast to the city-wide regulations of the Denton Development Code (DDC), which has no minimum masonry requirement for any facade of a single-family home. Variation in Housing Type - The developer will provide a minimum of 25% of houses will include a 3 -car garage or J -swing drives to enhance the aesthetics of the street by limiting the amount of garage doors directly facing the street and to provide a variety of housing types. These features are to be evenly distributed throughout the development. Additionally, the PAA includes a non -repeat clause to restrict the proximity in which two similar elevations, floor plans, and color selections can be used along the same street. Variation in Setbacks - Varying front yard setbacks of 20 feet and 25 feet to eliminate the repetition and uniformity commonly associated with tract home development. City of Denton Page 3 of 5 Printed on 8/5/2016 povveied by I_egist9i I;, File #: Al 6-0003a, Version: 1 Minimum Floor Area - Homes within the development shall have a minimum floor area of 1,800 square feet of air-conditioned space, however no less than 25% of the homes shall be 2,400 square feet or greater of air -conditioned space. This is comparable with surrounding neighborhoods which generally range from 1,500 to 5,000 square feet of floor area. The minimum city-wide requirement in the DDC is 900 square feet. Tract 2 Tract 2 is located on the north side of Ryan Road and is not proposed for inclusion in the PAA. The owner of this property would like to remain subject to the NAA and outside of city limits. Staff recommends the NAA be extended to the year 2020 for consistency with other NAA's approved by City Council or that site be annexed immediately according to the terms of the NAA originally set to expire in March 2016. Once annexed it would receive an initial zoning of RD -5X and be subject to the regulations of the Rural Residential (RD -5) zoning district. However, it is at the City Council's discretion to determine an annexation schedule within the terms of the PAA. RYAN ROAD IMPROVEMENTS Ryan Road is currently a two-lane, undivided roadway with varying right-of-way widths between Teasley Lane (FM 2181) and Country Club Road (FM 1830). Per the Mobility Plan, the fully developed condition of Ryan Road is a four -lane, divided roadway with a total right-of-way width of 110 feet. In the typical development process, the fully developed condition is achieved by requiring the developer to dedicate the necessary right-of- way and fully construct their half of the street and sidewalks for the full frontage of the property. In the proposed PAA, the developer of each individual tract will still dedicate the necessary right-of-way, but a Perimeter Street Improvement Contribution will be assessed in lieu of constructing the streets and sidewalks. The purpose of the Perimeter Street Improvement Contribution in lieu of construction is to more fairly distribute the costs of street improvements according to the anticipated impact of each individual tract rather than the amount of frontage along Ryan Road. Tract 1B, for instance, will only be developed with no more than three single-family homes, yet has the greatest amount of street frontage. Additionally, the creek crosses Ryan Road within the frontage of this tract which is likely to require higher costs associated with constructing culverts underneath the road. Requiring the developer of Tract 1B to construct Ryan Road to its fully developed condition would be disproportionate to the impact generated by the three houses. Instead, the developer will be assessed a Perimeter Street Improvement Contribution that is roughly proportionate to its impact on Ryan Road. The total Perimeter Street Improvement Contribution was calculated by the Director of Engineering to be $900,800. This will be divided into a $375,000 contribution for Tract IA, $5,200 for Tract 113, and $520,600 by Tract 1C. Tract 1 will be assessed using the standard development process as it is not proposed for inclusion in the PAA. The Street Development Fees collected by the developments may only be used towards a future City of Denton roadway project for Ryan Road. EXHIBITS 1. Location Map 2. Zoning Map 3. PAA Boundary Map 4. Tree Preservation Plan 5. Tract IA Concept Plan 6. Tract 1 C Detailed Plan City of Denton Page 4 of 5 Printed on 8/5/2016 povveied by I_egist9i I;, File #: Al 6-0003a, Version: 1 7. Amenity Center 8. Fencing Exhibit 9. Entry Monument 10. Hardscape and Landscape Exhibit 11. PAA v. DDC Comparison Table Respectfully submitted: Munal Mauladad Deputy Director of Development Services Prepared by: Mike Bell Senior Planner City of Denton Page 5 of 5 Printed on 8/5/2016 povveied by I_egist9i I;, m ^` mw x m Lu a v� LU C �� x m N W � L Q < o o22 U0 Q x N O Q E O U N 0 m H En A` W M: LU O w � '^ V! z cu Lu— X C N O J Wu m a _ En LULZ / §) �@ ( ƒ O/\ w a Q dj Q Q O O O O bA M z O. � �i H ✓� z z z z z z y C C O C, W o N N N N o Cl F 3 Q a cl "a N � ' U F Q Q Q Q Q Q Q Q Q r O o O a ^N 0 N GI O C) U WIz. i cy~d T O 7 W � � � � ✓� � Vl O N Q _N [S� ✓y w o a Q" Q a NN^y bb F+ M W W O O r c} c I cl cz s0. � �.-: 0.1 � v � •� � ° ¢, N N N �+ H T O M �L. 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McKinney St. - Denton, Texas 76201 www.cityofdenton.com , DENTON Legislation Text File #: ID 16-995, Version: 1 Agenda Information Sheet DEPARTMENT: Finance ACM: Bryan Langley Date: August 9, 2016 SUBJECT Receive a report; hold a discussion, and give staff direction regarding the FY 2016-17 City Manager's Proposed Budget, Capital Improvement Program, and Five -Year Financial Forecast. BACKGROUND The FY 2016-17 City Manager's Proposed Budget was submitted to the Council on July 29, 2016. Staff provided the City Council with a comprehensive overview of the proposed budget at a Budget Work Session on August 4, 2016. The purpose of this agenda item is to provide the City Council with an additional opportunity for questions and dialogue. Below is the schedule we will follow to adopt the budget and tax rate: August 23 1" Public Hearing on Tax Rate September 13 2nd Public Hearing on Tax Rate Public Hearing on Proposed Budget September 20 City Council Adopts Budget and Tax Rate I look forward to continued budget discussions. If you have any questions, or need additional information, please let me know. STRATEGIC PLAN RELATIONSHIP The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Organizational Excellence Related Goal: 1.1 Manage financial resources in a responsible manner City of Denton Page 1 of 2 Printed on 8/5/2016 povveied by I_egivt9i IN File M ID 16-995, Version: 1 Respectfully submitted: Chuck Springer 349-8260 Director of Finance City of Denton Page 2 of 2 Printed on 8/5/2016 povveied by I_egist9i I;, City Hall City of Denton 215 E. McKinney St. - Denton, Texas 76201 www.cityofdenton.com DEN, ` ON File #: ID 16-964, Version: 1 Legislation Text Agenda Information Sheet SUBJECT Deliberations Regarding Certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086. Receive a presentation from staff regarding public power competitive and financial matters related to the City's participation in, and the overall operational and financial aspects of, the Texas Municipal Power Agency; discuss and deliberate strategies regarding same; discuss, deliberate and provide staff with direction. City of Denton Page 1 of 1 Printed on 8/5/2016 povveied by I_egivt9i IN City Hall City of Denton 215 E. McKinney St. - Denton, Texas 76201 www.cityofdenton.com DEN, ` ON File #: ID 16-996, Version: 1 Legislation Text Agenda Information Sheet SUBJECT Certain Public Power Utilities: Competitive Matters --- Under Texas Government Code, Section 551.086. Receive competitive public power competitive information and financial information from staff regarding the proposed FY 2016-2017 operating budget for Denton Municipal Electric ("DME") including without limitation, proposed rates for DME for FY 2016-2017, expected revenues, expenses, commodity volumes, and financial commitments of DME; discuss, deliberate and provide staff with direction. City of Denton Page 1 of 1 Printed on 8/5/2016 povveied by I_egivt9i IN City Hall City of Denton 215 E. McKinney St. - Denton, Texas 76201 www.cityofdenton.com DEN, ` ON Legislation Text File #: ID 16-1080, Version: 1 Agenda Information Sheet SUBJECT Consultation with Attorneys - Under Texas Government Code, Section 551.071 Consultation, discussion, deliberation, and receipt of information from the City's attorneys involving legal matters relating to the annexation or extension/renewal of non -annexation agreement for a potentially eligible property, and to provide the City Attorneys with direction, where a public discussion of these legal matters would clearly conflict with the duty of the City's attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. City of Denton Page 1 of 1 Printed on 8/5/2016 povveied by I_egivt9i IN City Hall City of Denton 215 E. McKinney St. - Denton, Texas 76201 www.cityofdenton.com , DENTON File #: ID 16-987, Version: 1 DEPARTMENT: ACM: Date: Finance Bryan Langley August 9, 2016 Legislation Text Agenda Information Sheet SUBJECT Consider approval of a resolution of the City Council of the City of Denton, Texas placing a proposal on the September 20, 2016, City Council public meeting agenda to adopt a 2016 Tax Rate that will exceed the lower of the rollback rate or the effective tax rate; calling two public hearings on a tax increase to be held on August 23, 2016, and September 13, 2016 and calling a budget public hearing on the Fiscal Year 2016-2017 Annual Program of Services of the City of Denton to be held on September 13, 2016; requiring publication of notices of the public hearings in accordance with the law; requiring the posting of the notices of the public hearings on the City's Internet website; requiring the posting of the notices on the City's public access channel; and providing an effective date. BACKGROUND The Texas Constitution and Texas Property Tax & Local Government Codes require taxing units to comply with specific guidelines in adopting tax rates. The guidelines are related to a concept known as truth -in - taxation. This concept is a way to make taxpayers aware of tax rate proposals and allow taxpayers in certain circumstances, to rollback or limit a tax increase. The truth -in -taxation guidelines require taxing entities to calculate and publish their effective and rollback tax rates. The effective rate is the calculated rate that would provide the taxing unit approximately the same amount of revenue it received in the previous year on properties taxed in both years. This rate excludes taxes on properties no longer in the taxing unit and also excludes any growth due to new property values. The City of Denton's 2016 effective rate is $0.663366/$100 valuation. The rollback rate divides the total property tax revenue into support for maintenance and operations (M&O) taxes and debt service taxes. It provides approximately an eight percent increase in revenue from the previous year for maintenance and operations expenses, plus the necessary debt service tax rate. If a taxing unit adopts a tax rate higher than the rollback rate, the voters have the option to petition for an election to limit the size of the tax increase. The City of Denton's 2016 rollback rate is $0.720790/$100 valuation. The City Manager's FY 2016-17 Proposed Budget recommended a tax rate of $0.684750 per $100 of valuation, and this rate is above the effective rate. In order to consider a tax rate above the effective rate, state law requires the publication of the attached notice and that two public hearings be held on the proposed tax rate with the meeting to adopt the tax rate occurring three to 14 days after the second public hearing. While the City City of Denton Page 1 of 3 Printed on 8/5/2016 povveied by I_egivt9i IN File #: ID 16-987, Version: 1 Council is able to adopt a tax rate lower than the proposed tax rate, it is not able to exceed the published tax rate unless the required notice is republished and the public hearings are held again per state law. Therefore, staff is recommending that the prior year's tax rate of $0.689750 be published in order to provide flexibility to the City Council while it deliberates on this matter. In addition to the state requirements for the truth in taxation legislation, the City Charter and Chapter 102 of the Texas Local Government Code require the City Council to hold a public hearing on the FY 2016-17 Annual Program of Services. In compliance with the City Charter and Chapter 102, we are also required to publish a notice of the public hearing in the Denton Record Chronicle not earlier than the 30th day or later than the 10' day before the date of the public hearing. The attached "Notice of Public Hearing on Budget" would need to be published in the Denton Record Chronicle. It would also need to be posted on the City of Denton's website, ttl./and air on the public access channel. RECOMMENDAT EON Staff recommends approval of the resolution. EST 2gATED 6C C EDU CE D EIEROJECT August 23, 2016 Hold First Public Hearing on Tax Rate September 13, 2016 Hold Second Public Hearing on Tax Rate September 13, 2016 Hold Public Hearing on the Budget September 20, 2016 Adopt Tax Rate mailesommilii®■ ■1[ ■ 1■I1■ P On June 14, 2016, the City Council was provided information regarding the FY 2016-17 Preliminary Budget. On July 18, 2016, the City Council held a work session to discuss budget priorities for the FY 2016-17 Budget. On August 4, 2016, the City Council held a budget workshop on the FY 2016-17 Proposed Budget, including the proposed tax rate. STRATEG CU SCAN RE CAT EONS C The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Organizational Excellence Related Goal: 1.1 Manage financial resources in a responsible manner ECCEBCTS 1. Resolution and Required Notices City of Denton Page 2 of 3 Printed on 8/5/2016 povveied by I_egist9i I;, File M ID 16-987, Version: 1 Respectfully submitted: Chuck Springer, 349-8260 Director of Finance Prepared by: Antonio Puente, Jr. Assistant Director of Finance City of Denton Page 3 of 3 Printed on 8/5/2016 povveied by I_egist9i I;, s:Alegal\our documents\resolutions\16\resolution budget tax rate public hearing.doc RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS PLACING A PROPOSAL ON THE SEPTEMBER 20, 2016 CITY COUNCIL PUBLIC MEETING AGENDA TO ADOPT A 2016 TAX RATE THAT WILL EXCEED THE LOWER OF THE ROLLBACK RATE OR THE EFFECTIVE TAX RATE; CALLING TWO PUBLIC HEARINGS ON A TAX INCREASE TO BE HELD ON AUGUST 23, 2016 AND SEPTEMBER 13, 2016 AND CALLING A BUDGET PUBLIC HEARING ON THE FISCAL YEAR 2016-2017 ANNUAL PROGRAM OF SERVICES OF THE CITY OF DENTON TO BE HELD ON SEPTEMBER 13, 2016; REQUIRING PUBLICATION OF NOTICES OF THE PUBLIC HEARINGS IN ACCORDANCE WITH THE LAW; REQUIRING THE POSTING OF THE NOTICES OF THE PUBLIC HEARINGS ON THE CITY'S INTERNET WEBSITE; REQUIRING THE POSTING OF THE NOTICES ON THE CITY'S PUBLIC ACCESS CHANNEL; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council desires to adopt the Fiscal Year 2016-17 Annual Program of Services (Budget) for the City of Denton, Texas; and WHEREAS, in order to adopt the Budget, the City Council must first hold a public hearing on the Budget and provide notice of same in accordance with Article VIII `Budget" of the City Charter and other applicable law; and WHEREAS, the City Council desires to consider adopting a tax rate of $0.689750 per $100 valuation, which will exceed the lower of the rollback rate or effective tax rate, in accordance with the requirements of the Texas Local Government Code Chapter 140 and Tax Code Chapter 26, as applicable, and to schedule two public hearings on the proposed tax increase; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings set forth in the preamble of this Resolution are incorporated by reference into the body of this Resolution as if fully set forth herein. SECTION 2. The City Council desires to consider adopting a tax rate for the 2016 tax year of $0.689750 per $100 valuation that will exceed the lower of the rollback rate or the effective tax rate. SECTION 3. The City Council hereby approves the placement of an item on the September 20, 2016 City Council public meeting agenda to vote on a proposed tax rate of $0.689750 per $100 valuation that will exceed the lower of the rollback rate or the effective tax rate. The meeting to vote on a proposed tax rate will not be held until notice of the meeting to vote on a proposed tax rate has been published in the Denton Record Chronicle, a newspaper having general circulation within the City, in the form of the attached Notice of Proposed Property Tax Rate, which is made a part of this Resolution for all purposes. The City Manager or his designee is directed to post the attached Notice of Proposed Property Tax Rate on the City's Internet website and shall request that the City's public access television channel carry a 60 -second notice of the meeting to vote on a proposed tax rate at the times and for the periods and in accordance with the requirements of applicable law. s:Alegal\aur docurnents\resolutionsA16\resolution budget tax rate public hearing.doe SECTION 4. The City Council hereby calls two public hearings on the proposed tax rate to be held in the City Council Chambers at City Hall located at 215 East McKinney Street in Denton, Texas 76201 on August 23, 2016 and September 13, 2016 at 6:30 p.m. The public hearings will not be held until after notice of the public hearings has been published in the Denton Record -Chronicle, a newspaper having general circulation within the City, in the form of the attached Notice of Proposed Property Tax Rate, which is made a part of this Resolution for all purposes. The City Manager, or his designee, is hereby directed to publish said notice in accordance with this Resolution and in accordance with applicable law. The City Manager or his designee is directed to post the attached Notice of Proposed Property Tax Rate on the City's Internet website and shall request that the City's public access television channel carry a 60 - second notice of the public hearing at the times and for the periods and in accordance with the requirements of applicable law. At the public hearings, the City Council will afford adequate opportunity for both proponents and opponents of the proposed tax rate to present their views. SECTION 5. The City Council hereby calls a public hearing on the proposed Budget to be held in the City Council Chambers at City Hall located at 215 East McKinney Street in Denton, Texas 76201 on September 13, 2016 at 6:30 p.m. The public hearing will not be held until notice of the public hearing has been published in the Denton Record -Chronicle, a newspaper having general circulation within the City, in the form of the attached Notice of Public Hearing on the Budget, which is made a part of this Resolution for all purposes. This notice shall be published not earlier than the 30th or later than the 10th day before the date of the public hearing. The City Manager, or his designee, is hereby directed to publish said notice in accordance with this Resolution and in accordance with Article VIII of the City Charter, Chapter 102 of the Texas Local Government Code and all other applicable law. The City or his designee is directed to post the attached Notice of Public Hearing on the Budget on the City's Internet website and shall request that the City's public access television channel carry a 60 -second notice of the public hearing at the times and for the periods and in accordance with the requirements of applicable law. SECTION 6. This Resolution shall become effective immediately upon its passage and approval at a regular meeting of the City Council of the City of Denton, Texas on this the day of August, 2016, at which meeting a quorum was present and the meeting was held in accordance with the provisions of Tex. Gov't Code §551.001, et seq. The City Secretary is hereby directed to record this Resolution and the vote on the proposal to place the item for adoption of a 2016 tax rate on the September 20, 2016 City Council agenda. PASSED AND APPROVED this the day of , 2016. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY Page 2 sAlegal\our documents\resolutions\l 6\resolution budget tax rate public hearing,doc APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Council Member Voted For Voted Against Chris Watts, Mayor Kevin Roden, Mayor Pro Tern Dalton Gregory Keely Briggs Joey Hawkins Kathleen Wazny Sara Bagheri Page 3 Publish in August 14, 2016 Denton Record Chronicle NOTICE OF 2016 TAX YEAR CITY OF DENTON A tax rate of $0.689750 per $100 valuation has been proposed for adoption by the governing body of the City of Denton. This tax rate exceeds the lower of the effective or rollback tax rate, and state law requires that two public hearings be held by the governing body before adopting the proposed tax rate. The governing body of the City of Denton proposes to use revenue attributable to the tax rate increase for the purpose of paying maintenance and operation expenses, and debt service. PROPOSED TAX RATE PRECEDING YEAR'S TAX RATE EFFECTIVE TAX RATE ROLLBACK TAX RATE $0.689750 per $100 $0.689750 per $100 $0.663366 per $100 $0.720790 per $100 The effective tax rate is the total tax rate needed to raise the same amount of property tax revenue for the City of Denton from the same properties in both the 2015 tax year and the 2016 tax year. The rollback tax rate is the highest tax rate the City of Denton may adopt before voters are entitled to petition for an election to limit the rate that may be approved to the rollback rate. YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS FOLLOWS: property tax amount = ( rate ) x ( taxable value of your property ) / 100 For assistance or detailed information about tax calculations, please contact: Michelle French Denton County Tax Assessor -Collector 1505 E. McKinney Street, Denton, TX, 76209 940-349-3500 Property.Tax@dentoncounty.com http://tax.dentoncounty.com You are urged to attend and express your views at the following public hearings on the proposed tax rate: First Hearing: 6:30 p.m. on August 23, 2016 at City Hall, 215 E. McKinney Street, Denton, TX, 76201 Second Hearing: 6:30 p.m. on September 13, 2016 at City Hall, 215 E. McKinney Street, Denton, TX, 76201 Publish in August 24, 2016 Denton Record Chronicle NOTICE OF PUBLIC HEARING ON BUDGET The City Council for the City of Denton, Texas, will hold a public hearing on the Fiscal Year 2016-17 Annual Program of Services (Budget), on Tuesday, September 13, 2016 at 6:30 p.m. in the City Council Chambers at City Hall, located at 215 East McKinney Street in Denton, Texas, 76201. The meeting will be held for the purpose of receiving community input on the Budget. THIS BUDGET WILL RAISE MORE TOTAL PROPERTY TAXES THAN LAST YEAR'S BUDGET BY $498919043 OR 8.38% AND OF THAT AMOUNT $194399429 IS TAX REVENUE TO BE RAISED FROM NEW PROPERTY ADDED TO THE TAX ROLL THIS YEAR. All interested citizens are encouraged to attend and express their views.