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HomeMy WebLinkAboutR2003-011aRESOLUTION NO. ~(~J)"~- A RESOLUTION APPROVING THE FISCAL YEAR 2004 FINANCIAL PLAN (BUDGET) OF THE DENCO AREA 9-1-1 DISTRICT, PURSUANT TO TEXAS HEALTH & SAFETY CODE §772.309 AS AMENDED; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton has been presented the 2004 Draft Financial Plan (Budget) of the Denco Area 9-1-1 District for approval, in accordance with Tex. Health & Safety Code §772.309 (Vernon 1999) as amended; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the City Council of the City of Denton hereby approves the 2004 Fiscal Year Draft Financial Plan (Budget) of the Denco Area 9-1-1 District attached to this Resolution. SECTION 2. That this Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this thet ,_., day of ,2003. EULINE BROCK, MAYOR BY: ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY DENCO AREA 9" 1 "1 DISTRICT FISCAL YEAR 2004 DRAFT FINANCIAL PLAN DENCO AREA 9-1-'1 DISTRICT FISCAL YEAR 2004 FINANCIAL PLAN DENCO AREA 9-1-1 DISTRICT FISCAL YEAR 2004 FINANCIAL PLAN SECTION 1 PREFACE To: DENCO AREA 9-1-1 DISTRICT P.O. Box 293058, Lcwisville, Texas 75029-3058 Phone/TTY: 972-221-0911 · FAX: 972-420-0709 · Web Page:ww.denco.org Denco Area 911 District Participating Jurisdictions Date: June 5, 2003 Subject: Denco Area 911 District Fiscal Year 2003 Financial Plan The Denco Area 9-1-1 District's Board of Managers, at its June 5, 2003 regular meeting, approved the Draft" Denco Area 9-1-1 District Fiscal Year 2004 Financial Plan and authorized district staff to forward it to all participating jurisdictions for consideration. Fiscal year 2003 has been a very productive year for the Denco Area 9-1-1 District. Major accomplishments during the fiscal year includes the following: The district replaced its entire 9-1-1 network and database systems with more effective and efficient systems. Included were the installation of three controller switches that provide for better call distribution as well as better network diversity and redundancy. The district also moved its wireless and wireline database systems to a more modem platform that also provides for better dependability. The district also helped lead the state and nation with the deployment of Phase II Enhanced 9-1-1 Wireless Services. Phase II provides telecommunicators with a close proximity location of 9-1-1 callers using wireless (cellular) telephones. Denco has been preparing for this deployment since 1997. The technology has already proven to be effective in assisting call takers locate wireless 9-1-1 callers during emergency situations. Distdct staff also participated in the negotiations of agreements with both wireless and landline carriers that provide financial stability for all emergency communication districts in Texas. Even though the fiscal year 2003 financial plan includes a deficit budget of over $1,000,000, the district's financial position continues to remain sound. Denco has planned for the expenditures associated with the deployment of the new systems and used reserve equipment and network dollars to fund the projects. The enclosed 2004 financial plan provides for additional enhancements to the current network that will minimize outages during a potential disaster event. It also provides for the funding of additional public education programs relating to the deployment of Phase II services, additional training opportunities for telecommunicators, enhancement of map data and for the fine-tuning of the new systems. The Denco Area 9-1-1 District is here to serve its member jurisdictions. The district's mission is "to assist its member jurisdictions respond to police, fire and medical emergency calls by providing an efficient, effective enhanced 9-1-1 emergency telecommunications system'. Denco continues to provide more services each year at the same service fee rate since its beginning in 1987. Please call on any board member or the district staff if you have any comments or questions concerning this proposed budget. The district's executive director, Mike Pedigo, would welcome the opportunity to make a presentation to your governing body regarding this budget or any other Denco related matter. Again, thanks for your support of the Denco Area 9-1-1 District. Jack Miller Chairman, Board of Managers 1075 Princeton Street, Lewisville, Texas 75067 DENCO AREA 9-1-1 DISTRICT P.O. Box 293058, Lewisville, Texas 75029-3058 Phone/TTY: 972-221-0911 · FAX: 972-420-0709 · Web Page:ww.denco.org Tn:Denco Area 911 District Participating Jurisdictions Date: June S, 2003 Subject:Denco Area 911 District Fiscal Year 2004 Financial Plan Enclosed is a "draft" copy of the Denco Area 9-1-1 District Fiscal Year 2004 Financial Plan for your jurisdiction's consideration. Chapter 772.300, Texas Health and Safety Code, requires emergency communication districts to send a draft budget to participating jurisdiedons seeking comments. After a 45-day review and comment period, the district's board ofmanagers will consider approval ora final budget. Denco's draft financial plan provides for the continued provision of state-of-the-art enhanced 9-1-1 services at the same rate that Denco has collected from district residents since its inception in 1987. The emergency service fee, collected by the telephone service providers is $0.27 per month for residential, $0.71 per month for business service and $1.13 per month for PBX trunks. This fee is equal to three percent ofthe 1987 base telephone rate. Danco continues to provide excellent services to its member jurisdictions at one of the lowest rates in the state. In addition to the emergency service fee collected by local telephone service providers, the State of Texas collects $0.50 per month per wireless telephone. Those fees are remitted to the state. The state then sends a portion ofthe wireless fund to Deaco based on the district's percent ofthe total population of Texas. The 76t~ Texas Legislature passed House Bill 1984 which defined the budget approval process for Chapter 772.300 series emergency communication districts. The following documents are included in Section 5, the Appendix ofthis financial plan, defining the budget approval process: A copy of the Denco Area 9-1-1 Disltict Mission, Values and Goals Statement. A copy of the section in House Bill 1984 that pertains to budget approval. A copy of a resolution approved by the Denco Area 9-1-1 District Board of Managers defining procedures for consideration and approval of a budget. A copy of Texas Health and Safety Code, Chapter 772.300; the statute under which Denco operates. Even though it is not required for your governing body to vote on thc budget, Denco requests that you review the budget and provide feedback prior to the August 7, 2003 district board of managers' meeting. At that time the board will approve a final budget for fiscal year 2004, which begins October 1, 2003. Ifthere are no changes from the draft budget, the district will notify its members that the budget is approved. If there are any changes, the district will request each jurisdiction to approve the final budget and a copy ofthat budget will be sent to the governing bodies ofparticipating jurisdictions for consideration. If, at any time, you have any questions or would like additional information, please do not hesitate to call me at 972) 221-0911. Thanks for your continued support of the Deeco Area 9-1-1 District. Mike Pedigo Executive Director 1075 Princeton Street, Lewisville, Texas 75067 DENCO AREA 9-1-1 DISTRICT FISCAL YEAR 2004 FINANCIAL PLAN SECTION 2 DISTRICT OVERVIEW DENCO AREA 9-1-1 DISTRICT DISTRICT OVERVIEW Backaround Information What is E9-1-17 Enhanced Nine-One-One (E9-1-1) is a single, easy-to-remember number used when reporting emergencies to fire, police and emergency medical service providers. The E9-1-1 system, operational in the Denco Area 9-1-1 District, is designed to automatically route any 9-1-1 call, placed from a telephone instrument (including wireless) within the district's geographical boundaries, to the proper public safety answering point (PSAP) responsible for dispatching emergency services to the caller. 9-1-1 Terminolo,q¥ 9-1-1. Nine-one-one. An easy-to-remember, easy-to-dial three-digit emergency telephone number developed to provide citizens a reliable, fast and convenient way to access fire, police, or medical service providers in the event of an emergency. District. Denco Area 9-1-1 District. The entity that provides enhanced 9-1-1 service in Denton County. A board of managers appointed by participating jurisdictions governs the district. The distdct serves Denton County and that portion of Carrollton in Dallas County. E9-1-1. Enhanced 9-1-1. The system that is operational in Denton County providing SR, ANI and ALI (defined below). GIS. Geographic Information Systems. The technology used to develop the mapped display of Denton County. PSAP. Public Safety Answering Point. The location of the equipment used to answer 9-1-1 emergency calls. The following are the twelve (12) PSAPs that are currently capable of answering 9-1-1 calls in the Denco Area 9-1-1 District: City of Carrollton Police Department City of Denton Police Department Denton County Shedff's Office Town of Flower Mound Police Department City of Highland Village Police Department City of Roanoke Police Department City of Lake Dallas Police Department City of Lewisville Police Department City of The Colony Police Department University of North Texas Police Department Texas Woman's University Police Department Denco Backup and Training PSAP SR. Selective Routing. The system that provides automatic routing of 9-1-1 calls based on the caller's location to the appropriate PSAP. The caller is not required to determine which public safety agency to call. ANI. Automatic Number Identification. The feature that provides the caller's telephone number on a console at the PSAP. ALI. Automatic Location Identification. The feature that provides the caller's name and address on a computer monitor at the PSAP. Database. The information accompanying a 9-1-1 call at the PSAP. The information provided is the caller's name, address and telephone number, as well as the emergency service providers designated to respond to the caller's address. Public Safety Telecommunicator. The individual answering the 9-1-1 calls; trained to communicate with persons seeking emergency assistance and with agencies and individuals providing such assistance. Phase I. The Federal Communication Commission (FCC) mandate to the wireless telephone industry and 9-1-1 requiring the proper routing of wireless 9-1-1 calls to PSAPs and the provision of the callers' ANI to the telecommunicators. Phase I1. The feature that provides the approximate geographic location of wireless callers, in addition to the FCC's Phase I enhancements. IWS. Integrated Workstation. The computerized 9-1-1 answering equipment provided by Denco. The equipment has the capacity to include dispatcher tools in addition to the 9-1-1 function, such as computer-aided dispatch, paging, mapping, etc. Denco has 52 integrated workstations at its 12 PSAPS. Benefits of E9-1-1 The E9-1-1 system has enhanced the ability of emergency service providers to save the lives and property of citizens in the Denco Area 9-1-1 District. Some of the direct benefits of the emergency communications system provided by Denco are the following: Only one three-digit number to remember in an emergency situation. The 9-1-1 call is routed to the proper agency responsible for dispatching help to the caller. Trained telecommunicators answer 9-1-1 cells. (In the Denco Area 9-1-1 District, telecommunicators are trained to provide emergency medical dispatch, thus reducing response time for medical emergencies.) Telecommunicators have the equipment and training necessary to communicate with hearing/speech impaired callers. The caller's name, address and telephone number, as well as the proper fire, police and emergency medical service designated to respond to the caller's address, is automatically provided to the telecommunicetor, thus reducing total response time. In the event the caller is unable to speak, the telecommunicator has the ability to dispatch help to the caller's location that is provided by the E9-1-1 system. ANI/ALI information provides a means to control and reduce prank calls. The public education programs associated with E9-1-1 promote citizen awareness and involvement with emergency service providers. The E9-1-1 system enhances local government's ability to meet the ever-growing public expectation of emergency services created by popular television programming. The E9-1-1 system is designed to allow PSAPs the ability to directly transfer a caller to another public safety agency or poison control center. The E9-1-1 system will identify calls from wireless phones, advising the telecommunicator to ask proper questions to determine the location of the emergency. Phase I provides the caller's telephone number so that the telecommunicator has the ability to reconnect if the call is terminated. Phase II provides additional location information to telecommunicators. The system has the ability to identify telephone companies serving 9-1-1 callers, thus streamlining the process for reconciling routing and database errors. Structure of the Denco Area 9-1-1 District Le.qislation During its 1985 legislative session, the 89th Texas Legislature passed Article 1432e Section 772, Texas Health and Safety Code), Emergency Telephone Number Act, which provided for the creation, administration, expansion, funding and dissolution of emergency communication districts in certain counties in Texas. The Emergency Telephone Number Act is the legislation under which the Denco Area 9-1-1 District operates. Purpose Section 772.302, Texas Health and Safety Code states the purpose of the Act to be the following: To establish the number 9-1-1 as the primary emergency telephone number for use by certain local governments in this state and to encourage units of local governments and combinations of those units of local government to develop and improve emergency communication procedures and facilities in a manner that will make possible the quick response to any person calling the telephone number 9-1-1 seeking police, fire, medical, rescue and other emergency services. Creation of Denco Area 9-1-1 District On August 8, 1987, Denton County held a special election to confirm the creation of the Emergency Communication District of Denton County and authorize a 9-1-1 emergency service fee, not to exceed three (3%) percent of the base rate of the principal service supplier per service year per month, to be charged by the district for the purpose of establishing E9-1-1 in Denton County. By a margin of 13,086 to 3,024, the voters favored the creation of the emergency communication district. After the special election, the city and county governing bodies within Denton County passed resolutions of participation. The resolutions stated that the city or county would become a participating jurisdiction in the district pursuant to the provisions of the Emergency Telephone Number Act. The participating jurisdictions of the district ara the following: Argyle Hackberry Aubrey Hebron Bartonville Hickory Craek Carrollton Highland Village Clark Justin Copper Canyon Krugerville Corinth Krum Corral City Lake Dallas Cross Roads Lakewood Village Denton Lewisville Double Oak Lincoln Park Flower Mound Unincorporated Denton County Little Elm Marshall Craek Northlake Oak Point Pilot Point Ponder Roanoke Sanger Shady Shoras The Colony Trophy Club On December 8, 1987, the district's board of managers orderad the levy and collection of the emergency fee to commence with the January 1988 billing cycle. The board orderad the service fee, collected by the telephone companies, to be charged at a rate of thrae (3%) percent of the base rate of GTE Southwest. The emergency service fee for basic levels of telephone service charged to customers in the district was capped at 27 for rasidential customers, $.71 for business customers and $1.13 for trunks. (The same cap remains in effect today.) On June 28, 1988, the board of managers named the Emergency Communications District of Denton County, Denco Area 9-1-1 District. Structura Board of Manaaers. Area 9-1-1 District. The board of managers is the governing body for the Denco The county, participating cities and the Denton County Fira Chiefs Association appoint the board. The currant board of managers is made up of the following members: Board Member Mr. Jack Miller,Chairman Mayor Olive Stephens, Vice Chairman Mr. Harlan Jefferson, Secretary Mr. Lewis Jue Chief Bruce Varner Mr. Melvin Willis Reoresents Denton County Commissioners Court Participating Cities Participating Cities Denton County Commissioners Court Fire Chiefs Association Verizon, Advisory Board members serve staggered two-year terms and are eligible for reappointment. The Emergency Telephone Number Act states "the board shall manage, control and administer the district. The board may adopt rules for the operation of the district." The legislation also allows the board to appoint a director of communications for the district who serves as its general manager. The director, with approval from the board, provides for the service necessary to carry out the purposes of the Emergency Telephone Number Act. The Denco Area 9-1-1 District's staff is responsible for performing all the duties that may be required for the district to accomplish its mission within the framework provided by the board. The "Draft" Denco Area 9-1-1 District Fiscal Year 2004 Financial Plan provides for eleven full time staff members that provide the planning, operations and maintenance functions for the district. The organizational structure of the district includes three direct service program areas that serve the 9-1-1 PSAPs and emergency service providers within the district. Included in the organizational chart are names of staff members in each program area. BoardofManagersI Goals The Denco Area 9-1-1 District has the following goals that support its endeavor to carry out its mission. Goal 1: Goal 2: Goal 3: Goal 4: Goal 5: Goal 6: To provide the policy, direction and control mechanisms necessary to assure that the Denco Area 9-1-1 District accomplishes its mission within the financial resources provided. To manage the Denco ,Area 9-1-1 District in an objective, efficient, effective and responsive manner. To increase public awareness of 9-1-1 issues and promote the proper use of the 9-1-1 system. To provide training programs which enable Public Safety Answering Point (PS,AP) personnel to effectively use the 9-1-1 system. To provide and maintain a dependable, state-of-the-art enhanced 9-1-1 network. To assure that PSAPs have the most accurate, reliable and useable data at all times. DENCO AREA 9-1-1 DISTRICT FISCAL YEAR 2004 FINANCIAL PLAN SECTION 3 FINANCIAL PLAN SUMMARY SUMMARY OF COST CLASSIFICATIONS DENCO AREA 9-1-1 DISTRICT FISCAL YEAR 2004 FINANCIAL PLAN SUMMARY Strategic Overview Fiscal Year 2003 During the current fiscal year, the Denco Area 9-1-1 District implemented the most significant technological changes to its emergency communication system in Denton County since the initial deployment of enhanced 9-1-1 services in August 1990. Denco completed the first phase of building a 9-1-1 system that is moro robust and dependable, using modern technology. Included in the deployment of new systems aro the following: Denco purchased and installed two new ECS 1000 PSAP Controllers. The controllers are the switches that process the 9-1-1 calls throughout the district. The two new controllers were placed at strategic locations and a third, existing controller, was moved to a back-up site. The district was able to better balance the call volume on the two switches and provide the platform for the installation of the equipment necessary to re-route 9-1-1 calls to another ECS 1000 in the event of a system failure. The district replaced its entire network with more efficient, effective technology. The moro than 350 new circuits are moro diversely routed and have moro redundancy, therefore providing moro reliability. Denco also consolidated its wireless and wireline enhanced 9-1-1 databases into one distributed database platform. The new platform has duplicate network connectivity and hardware located in different states. The system also has the ability to access data from other databases housing 9-1-1 data. Another significant technical accomplishment in 2003 was the deployment of Phase II Enhanced Wireless 9-1-1 service. Phase II provides the approximate location of a wireless telephone used to call 9-1-1. The district has been preparing for the implementation of Phase II since 1997 with the development and deployment of its GIS mapping systems. Denco was one of the first 9-1-1 administrative entities in the nation to complete the deployment of Phase I1. Already, telecommunicators are using the technology to help locate 9-1-1 callers. Denco also participated as a member of a negotiating team representing emergency communication districts across Texas. The cost recovery team successfully negotiated five-year agreements with wireless carriers and SBC for the recovery of costs associated with the deployment of Phase II enhanced 9-1-1 wireless services. Fiscal Year 2003 has not only been technologically significant with the deployment of new systems and enhancements to wireless services, it has also been financially significant in that the current budget is estimated to end with a $1,103,379 deficit. The deficit funds have been set-aside for several years to be used for the upgrade to its systems and the deployment of Phase II technology. Even though the reserve funds have been significantly reduced, the district continues to maintain adequate reserve funds to remain financially stable as it plans for the future. Denco has no intention of raising the service fee rate in the foreseeable future. Fiscal Year 2004 After the significant investment in the deployment of new systems and Phase II technology in fiscal year 2003, Denco plans to dedicate the majority of its financial and staff resources in 2004 to the fine-tuning of existing systems. The following are a few of the objectives that the Denco Area 9-1-1 District plans to accomplish next fiscal year: Install additional equipment and network that will allow district staffto re-route 9-1-1 calls to other equipment in the event of a system failure. Enhance the interoperability between the.Deneo Area 9-1-1 District's emergency communications systems and those of surrounding jurisdictions. Evaluate future options for selective routing and database services. Inform the public about the availability of Phase 11 enhanced wireless services and the need to purchase equipment capable of providing telecommunicators with location information. Increase district presence at community fairs and events. Introduce new 9-1-1 for Kids character, Cell Phone Sally, to pre-school and school-age children. Provide refresher training to telecommunicators and introduce the new tools provided by Deneo that will assist them in providing the best service available. Develop and provide classes required for intermediate TCLEOSE certification. Update and correct GIS data, based on input from member jurisdictions and discrepancies found in audit. Review and update administrative policies and procedures. Expenditures in the proposed Denco Area 9-1-1 Fiscal Year 2004 Financial Plan are estimated to be 70 percent or $1,165,273 of the current budget. Following is a financial overview that provides specific information regarding the proposed budget. Financial Overview Revenue Hi,qhli,qhts Fiscal year 2003 is the first year that 9-1-1 service fee revenue for the Denco Area 9-1-1 District is expected to be below the amount that was anticipated in the financial plan. The district expects total revenue for 2003 to be approximately $87,000 or three percent below the amount forecasted. Expenditures were adjusted to accommodate the decline in revenue. The district has planned for a decrease in total revenue for fiscal year 2004. In the past three years, Denco received refunds from vendors for services that were cancelled for various reasons prior to the termination date. Fiscal year 2004 does not include any refunds. Projected revenues in 2004 are anticipated to change by the following percentages as compared to the estimated revenue for 2003: Total service fee revenue is anticipated to increase by 2.06 percent. Wireline service fee revenue is expected to decrease by 2.43 percent, which is offset by an estimated increase in wireless service fee revenue of 7.0 percent. Interest revenue is anticipated to decline by 60 percent due primarily to low interest rates and the decrease in reserve funds. Contract service revenue is not expected to change. Denco has a contract with Denton County for addressing services. Miscellaneous revenue is proposed to be zero. The district received a refund of $53,000 for unused services in 2003. Expenditure Hi,qhliqhts As stated already, the proposed expenditures in the district's 2004 budget are 70 percent of the current year's budget. Many of the line items are proposed to remain the same or decrease. Specific expenditures by budget category include the following: Total p~ersonnel costs are proposed to increase by $22,074 or 2.65 percent. Included in the increase is a salary adjustment for five ofthe district's eleven staff members. This adjustment moves the employee within the existing salary range for that job category. The remaining staffmembers will not receive increases in salaries. Other changes in personnel include an increase in the cost for health insurance benefits. Total operations costs are proposed to decrease by $7,023 or 5 percent. Total direct service expenditures are proposed to decrease by 43 percent. The 2004 budget includes an increase in its capital reserve of $90,155. DENCO AREA 9-1-1 DISTRICT SUMMARY OF COST CLASIFICATIONS Personnel Expenditures Includes staffsalary, deferred compensation, health care and retirement benefits. Also included are costs for state unemployment tax and employer's contribution to Medicare. Ooerations Exoenditures lncludes the costs associated with the business operations ofthe Denco Area 9-1-1 District. Communications Includes telecommunication, printing/publishing and postage/shipping costs necessary for the district to disseminate information. Expendable Supplies Includes the cost of routine expendable office supplies and commercially available sofl~vare. Supplies also include the costs associated with service awards. Contract Services Includes the cost of legal fees, independent audit, Insurance, advertising and other contract services such as equipment and software support for district equipment. Building Services Includes the cost of utilities, building services, maintenance and repair expense for the office and training facility owned by district. Memberships/Subscriptions Includes individual and organizational memberships to professional organizations such as National Emergency Number Association (NENA), Association of Public Safety Communications Officials-International (APCO), and American Society for Training and Development (ASTD). Includes subscriptions to newspapers, periodicals, information services, technical support publications and the purchase or rental of books, videos and recordings. Professional Development Includes board and stafftraining and ongoing professional development through technical training classes, seminars, conferences and symposiums. Travel Includes out of district travel costs such as, but not limited to mileage reimbursement, airfare, food, lodging, local transportation, parking, telephone, etc. when such costs are reasonable and when they are incurred in conjunction with board and authorized stafftravel out of the district. Also included is reimbursement for the use of personal vehicles on official business within the district. Furniture and Equipment Includes the purchase ofthe necessary furniture and fixtures as well as office equipment necessary for the ongoing operations of the Denco Area 9-1-1 District. Direct Service Expenditures Includes all non-recurring and recurring costs attributed directly to the operations, maintenance, equipment, network and database required for the provision of 9-1-1 services. Also included are direct costs for information system services, public education and training for telecommunicators. 9-1-1 Systems Includes operations, service and direct maintenance costs required for Denco to maintain the 9-1- I systems. Also included are non-recurring and monthly recurring costs for network and database services, language interpretation and other recurring services. Information Systems Includes operations, service and direct maintenance costs required to develop and distribute 9-1- 1 GIS and other database information to public safety answering points and emergency response agencies. Included are costs for aerial photography files and the service and maintenance of hardware and software required to provide the data. Public Education/Training Public Education includes operating costs required for the development, purchase and distribution of public information and education materials for special focus groups and district at large. Also includes costs for special functions such as National Telecommunicator Week recognition and 9-1-1 Day activities. Training expenditures include cost for materials, instructors, registration, etc.; associated with meeting the training needs of 9-1-1 call takers. Also included are direct costs required for Denco to sponsor telecommunicators from across the district to the State &Texas annual awards and appreciation activities and recipients ofthe Dr. Allen Groff Emergency Medical Dispatch (EMD) Scholarship to the national EMD conference. Capital Recovery Reserve Fund Includes the reserve funds set aside for the replacement of 9-1-1 equipment and the purchase of enhanced services. DENCO AREA 9-1-1 DISTRICT FISCAL YEAR 2004 FINANCIAL PLAN SECTION 4 ANITCIPATED REVENUES PROPOSED EXPENDITURES DENCO AREA 911 DISTRICT FINANCIAL PLAN Summary of Anticipated and Proposed Expenditures Fiscal Year 2004 FY 2004 Percent of Pro Bud Anticipated Revenues 9-1-1 Service Fee Revenue $2,678,317 Interest Revenue $5,650 Contract Services Revenue $61,044 Miscellaneous Revenue (Expense) .$..Q Total Anticipated Revenues 2,745,011 97.57% 0.21% 2.22% 0.00% 100.00% Proposed Expenditures Personnel Operations Direct Services Capital Recovery Reserve 855,345 132,240 1,667,272 90,155 31.16% 4.82% 60.74% 3.28% Total Proposed Expenditures $2,745,011 100.00% DENCO AREA 911 DISTRICT FINANCIAL PLAN Anticipated Revenues Fiscal Year 2004 FY2004 Percent of Service Fee Revenue Verizon SBC Sprint CenturyTel Other Local Exchange Carriers (CLECs) Private Switch Service Fees Telephone Company Administrative Charges Telephone Company Uncollectible Charges Telephone Company Adjustments Net Wireline Service Fee Revenue Wireless Service Fee Revenue Total Service Fee Revenue 832,613 154,928 32,055 51,250 293,207 6,000 12,741) 1,644) 13,701 ) 1,341,967 1.336.350 2,678,317 30.33% 5.64% 1.17% 1.87% 10.68% 0.22% 0.46% 0.06% 0.50% 48.89% 48.68% 97.57% Non Service Fee Revenue Interest Revenue Contract Service Revenue Miscellaneous Revenue (Expenses) Total Non Service Fee Revenue 5,650 61,044 66,694 0.21% 2.22% 0.00% 2.43% Total Revenue $2,745,011 100.00% DENCO AREA 911 DISTRICT FINANCIAL PLAN Proposed Expenditures Fiscal Year 2004 FY2004 Percent of Bud Personnel Expenditures Salaries Benefits Operations Expenditures Communications Supplies Contract Services Building Services Memberships/Subscriptions Professional Development Travel Furniture and Equipment Direct Service Expenditures 9-1-1 Systems Operations Network and Database Services PS^P and Maintenance Equipment Information Systems Operations Public Education/Training Operations Public Education Services Training Services Capital Recovery Reserve Total Total Total 628,601 226,744 855,345 16,939 10,000 42,766 33,955 1,530 5,050 20,500 1,5oo 132,240 88,131 1,282,041 101,500 103,735 23,615 32,250 36,000 1,667,272 90,155 22.90% 8.26% 31.16% 0.62% 0.36% 1.56% 1.24% 0.06% 0.18% 0.75% 0.05% 4.82% 3.21% 46.70% 3.70% 3.78% 0.86% 1.17% 1.31% 60.74% 3.28% 2,745,011 100.00% Deneo Aren 9=1-1 District Financinl Plan l~e Year Pro ections , FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Beginning of Year Fund Balance $1~430,98~ $327~604 $417~75~ $650~491 $351~75( $fi16,728 Revenue Net Service Fee Revenue $2,624,32~ $2,678,3H $2,731~88~ $2,786,521 $2,842,251 $2,899,09~ Interest Revenue $14~17~ $5,65( $4,10( $4,10( $4,10( $4,10£ Con~'act Services Revenue $61,04z $61,04z $61~04~ $61,04x $61,04, $61,04~ Miscellaneous Revenue (Expense) $53. I 1 ( ~ $( $( $( $£ Total Revenue $2~752~661 $2~745~011 $2~797~02~ $2~851~66-s $2~907~39! $2~964~24{ Expenditures Personnel $777,351 $855,34.~ $900,14( $950,81 ." $1,006,142 $1,066,723 Operations $120,03( $132,24( $137,60.~ $144,76~ $152,365 $160,425 Direct Services $2,958,651 $1,667,271 $1,526,54' $2,054,831 $1,583,910 $1,613,811 Total Expenditures $3~856~03! $2~654~851 $2~:564~291 $3~150~411 $2~742~417 $2~840,962 Increase (Decrease) In Capital Recovery Re~erve 151~103r379 $90~15: $232~73~ ($298~746) $164,979 $123~27~ End of Year Fund R~!anee ~327.604 ~17.75~ ~650.496 ~1.750 $$16.728 ~6~#.0~ DENCO AREA 9-1-1 DISTRICT FISCAL YEAR 2004 FINANCIAL PLAN SECTION 5 APPENDIX MISSION STATEMENT HB 1984 RESOLUTIONS DISTRICT LEGISLATION DENCO AREA 9-1-1 DISTRICT Mission, Values and Goals Statement Mission The mission of the Denco Area 9-1-1 District is to assist its member jurisdictions respond to police, fire and medical emergency calls by providing an efficient, effective enhanced 9-1-1 emergency telecommunications system. Values The Denco Area 9-1-1 District pledges to uphold the following values: Value 1: Control of district operations is the responsibility of member jurisdictions and the board of managers. Value 2: The district will provide the most reliable, efficient, cost-effective and proven state-of-the-art technologies available at the lowest service fee rate possible. Goals The Denco Area 9-1-1 District has the following goals that support its endeavor to carry out its mission. Goal 1: To provide the policy, direction and control mechanisms necessary to assure that the Denco Area 9-1-1 District accomplishes its mission within the financial resources provided. Goal 2: To manage the Denco Area 9-1-1 District in an objective, efficient, effective and responsive manner. Goal 3: To increase public awareness of 9-1-1 issues and promote the proper use of the 9-1-1 system. Goal 4: To provide training programs which enable Public Safety Answering Point PSAP) personnel to effectively use the 9-1-1 system. Goal 5: To provide and maintain a dependable, state-of-the-art enhanced 9-1-1 network. Goal 6: To assure that PSAPs have the most accurate, reliable and useable data at all times. H.B. No. 1984 AN ACT relating to the consolidation of emergency communication districts and to the approval of proposed budgets of certain emergency communication districts. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 771.001(3), Health and Safety Code, is amended to read as follows: 3) "Emergency communication district" means: A) a public agency or group of public agencies acting jointly that provided 9-1-1 service before September 1, 1987, or that had voted or contracted before that date to provide that service; or B) a district created under Subchapter B, C, [eF] D, or F, Chapter 772. SECTION 2. Sections 772.309(b), (c), and (d), Health and Safety Code, are amended to read as follows: b) The board shall submit a draft of the orooosed bud(3et to the oovernino bodies of the participatin,q jurisdictions not later than the 45th day before the date the board adopts the bud,qet. The participatin,q jurisdictions shall review the proposed budpet and submit any comments reoardino the budoet to the board. c) If the qovernin,q body of a county, municioalitv, or other oarticioatino iurisdiction does not approve or disaoorove the budoet before the 61st day after the date the body received the proposed bud,qet for review, the budoet is aooroved bv operation of law. A revision of the budget must be approved in the same manner as the budget. e~ [(s-)] As soon as practicable after the end of each district fiscal year, the director shall prepare and present to the board and to each participating jurisdiction in writing a sworn statement of all money received by the district and how the money was used during the preceding fiscal year. The report must show in detail the operations of the district for the fiscal year covered by the report, d-)] The board shall have an independent financial audit of the district performed annually. DENCO AREA 9-1-1 DISTRICT RESOLUTION DEFINING THE DENCO AREA 9-1-1 DISTRICT BUDGET APPROVAL POLICY WHEREAS, the Denco Area 9-1-1 Distdct was created under Texas Health and Safety Code and the voters of Denton County to design, implement and operate a 9-1-1 system for all participating jurisdictions; and WHEREAS, the Board of Managers is appointed by participating jurisdictions to manage, control and administer the district; and WHEREAS, under the direction of the Board of Managers, the executive director prepares an annual budget that must be approved by the board, the commissioners court and the majority of participating cities; NOW, THEREFORE BE IT RESOLVED BY THE DENCO AREA 9-t-1 DISTRICT BOARD OF MANAGERS THAT: 1. The Denco Area 9-1-1 District approved budget shall include specific revenue and expenditure projections by department. Budget departments as defined in district's annual audit include service fee revenue, interest revenue and miscellaneous revenue. Expenditure departments include personnel services, operations, direct services, capital outlay and debt service. The board, at its discretion, may add or delete budget departments. 2. The executive director shall submit to the Board of Managers requests for amendments, revisions or modifications to the district's annual budget that require an increase in any budget department's expenditures in excess of five percent of the total department budget. Any increase of expenditures in excess of the approved department budget, up to five percent, shall be offset by a decrease of an equal amount in another department budget. 3. Without limiting the Board of Managers authority under Section 772, Texas Health and Safety Code, the Board of Managers may approve amendments, revisions or modifications to the District's annual budget as deemed reasonable and necessary as long as such budget amendments, revisions or modifications do not require that the total expenditures budgeted exceed the amount previously approved and adopted by the Board of Managers, the Denton County Commissioners Court and the majority of participating cities' governing bodies. APPROVED and ADOPTED on this 6th day of April 2000. Chairman, Board of Managers Secretary, Board of Managers DENCO AREA 9-1-1 DISTRICT RESOLUTION DEFINING PROCEDURES FOR CONSIDERATION AND APPOVAL OF A BUDGET WHEREAS, Sections 772.309(b)&(c), Texas Health and Safety Code have been amended by the Texas Legislature to specify certain procedures for the consideration and approval of a budget by the Board and governing bodies of participating jurisdictions. NOW, THEREFORE BE IT RESOLVED BY THE DENCO AREA 9-1-1 DISTRICT BOARD OF MANAGERS: The Board's procedures for consideration and approval of a budget shall include the following: 1. Not later than the 45u' day before the Board adopts a budget, the Executive Director on behalf of the Board will submit a draft ofthe proposed budget to each of the governing bodies ofthe participating jurisdictions. In a transmittal letter accompanying the draft of the proposed budget, the Executive Director will include a statement requesting that the governing bodies of each of the participating jurisdictions review the draft of the proposed budget and submit any comments to the Board prior to or on the date the budget is scheduled for consideration and adoption by the Board. 2. Once the Board adopts the budget, the Executive Director on behalf of the Board will within three days either l) send a letter to each of the governing bodies of the participating jurisdictions stating that the Board adopted the proposed budget without any changes or 2) send a copy ofthe budget adopted by the Board and include in a letter the differences between the proposed and adopted budget. In the letter to the governing bodies of the participating jurisdictions, the Executive Director will include a statement requesting approval ofthe Board's adopted budget by the governing bodies of participating jurisdictions within sixty days of receipt. APPROVED and ADOPTED on this 2nd day of December 1999. Chairman, Board of Managers Secretary, Board of Managers SUBCHAPTER D. EMERGENCY COMMUNICATION DISTRICTS: COUNTIES WITH POPULATION OVER 20,000 772.301. Short Title This subchapter may be cited as the Emergency Telephone Number Act. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.302. Purpose It is the purpose of this subchapter to establish the number 9-1-1 as the primary emergency telephone number for use by certain local governments in this state and to encourage units of local government and combinations of those units to develop and improve emergency communication procedures and facilities in a manner that will make possible the quick response to any person calling the telephone number 9-1-1 seeking police, tire, medical, rescue, and other emergency services. To this purpose the legislature finds that: 1) it is in the public interest to shorten the time required for a citizen to request and receive emergency aid; 2) there exist thousands of different emergency telephone numbers throughout the state, and telephone exchange boundaries and central office service areas do not necessarily correspond to public safety and political boundaries; 3) a dominant part of the state's population is located in rapidly expanding metropolitan areas that generally cross the boundary lines of local jurisdictions and often extend into two or more counties; and 4) provision of a single, primary three-digit emergency number through which emergency services can be quickly and efficiently obtained would provide a significant contribution to law enfomement and other public safety efforts by making it less difficult to notify public safety personnel quickly. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.303. Definitions In this subchapter: 1) "Board" means the board of managers of a district. 2) "Director" means the director of communication for a district. 3) "District" means an emergency communication district created under this subchapter. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.304. Application of Subchapter a) This subchapter applies only to a county with a population of more than 20,000 or to a group of two or more contiguous counties each with a population of 20,000 or more in which an emergency communication district was created under Chapter 288, Acts of the 69th Legislature, Regular Session, 1985, before January 1, 1988, or to a public agency or group of public agencies that withdraws from participation in a regional plan under Section 771.058(d). b) This subchapter does not affect the authority of a public agency to operate under another law authorizing the creation of a district in which 9-1-1 service is provided. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. Amended by ^cts 1999, 76th Leg., ch. 1405, § 32, eft. Sept. 1, 1999. 772.305. Additional Territory a) If a municipality that is part of a district annexes territory that is not part of the district, the annexed territory becomes part of the district. b) A public agency located in whole or part in a county adjoining the district, by resolution adopted by its governing body and approved by the board of the district, may become part of the district and subject to its benefits and requirements. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.306. Board of Managers a) A district is governed by a board of managers. b) If the most populous municipality in the district has a population of more than 140,000, the board consists of: 1) one member for each county in the district appointed by the commissioners court of each county; 2) two members appointed by the governing body of the most populous municipality in the district; 3) one member appointed by the governing body of the second most populous municipality in the district; 4) one member appointed as provided by this section to represent the other municipalities located in whole or part in the district; and 5) one member appointed by the principal service supplier. c) If Subsection (b) does not apply to a district, the board consists of: 1) the following members representing the county or counties in the district: A) if the district contains only one county, two members appointed by the commissioners court of the county; B) if the district originally contained only one county but contains more than one county when the appointment is made, two members appointed by the commissioners court of the county in which the district was originally located, and one member appointed by the commissioners court of each other county in the district; or C) if the district originally contained more than one county and the district contains moro than one county when the appointment is made, one member appointed by the commissioners court of each county in the district; 2) two members appointed jointly by all the participating municipalities located in whole or part in the district; 3) one member appointed jointly by the volunteer firo departments operating wholly or partly in the district, with the appointment process coordinated by the county firo marshal or marshals of the county or counties in the district; and 4) one member appointed by the principal service supplier. d) The board member appointed by the principal service supplier is a nonvoting member. If the board is appointed under Subsection (c), the principal service supplier may waive its right to appoint the board member and designate another service supplier serving all or part of the district to make the appointment. e) The board member appointed under Subsection (b)(4) is appointed by the mayor's council established to administer urban development block grant funds, if one exists in the district. Otherwise, the member is appointed by the other members of the board on the advice and recommendation of the governing bodies of all the municipalities represented by the member. f) The initial board members appointed by municipalities under Subsection (c)(2) aro appointed by all the municipalities located in whole or part in the district. g) Board members are appointed for staggered terms of two years, with as near as possible to one-half of the members' terms expiring each year. h) A board member may be removed from office at will by the entity that appointed the member. i) A vacancy on the board shall be filled for the romainder of the term in the manner provided for the original appointment to that position. j) Board members serve without compensation. The district shall pay all expenses necessarily incurred by the board in performing its functions under this subchapter. k) The board may appoint from among its membership a presiding officer and any other officers it considers necessary. I) The director or a board member may be appointed as secretary of the board. The board shall require the secretary to keep suitable records of all proceedings of each board meeting. After each meeting the presiding officer at the meeting shall read and sign the record and the secretary shall attest the record. m) Voting members of the board may meet in executive session in accordance with Chapter 551, Government Code. n) A majority of the voting members of the board constitutes a quorum. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 76, § 5.95(82), eft. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 638, § 15, eft. Sept. 1, 1995. 772.307. Powers and Duties of Board a) The board shall control and manage the district. b) The board may adopt rules for the operation of the district. c) The board may contract with any public or private entity to carry out the purposes of this subchapter, including the operation of a 9-1-1 system. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.308. Director of District a) The board shall appoint a director of communication for the district and shall establish the director's compensation. The director must be qualified by training and experience for the position. b) The board may remove the director at any time. c) With the board's approval, the director may employ any experts, employees, or consultants that the director considers necessary to carry out the purposes of this subchapter. d) The director shall perform all duties that the board requires and shall supervise as general manager the operations of the district subject to any limitations prescribed by the board. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.369. Budget; Annual Report; Audit a) The director shall prepare under the direction of the board an annual budget for the district. To be effective, the budget must: 1) be approved by the board; 2) be presented to and approved by the commissioners court of each county in the district; 3) be presented to and approved by the governing body of the most populous municipality in the district, if that municipality has a population of more than 140,000; and 4) be presented to the governing body of each other participating jurisdiction and approved by a majority of those jurisdictions. b) The board shall submit a draft of the proposed budget to the governing bodies of the participating jurisdictions not later than the 45th day before the date the board adopts the budget. The participating jurisdictions shall review the proposed budget and submit any comments regarding the budget to the board. c) If the governing body of a county, municipality, or other participating jurisdiction does not approve or disapprove the budget before the 61st day after the date the body received the proposed budget for review, the budget is approved by operation of law. d) A revision of the budget must be approved in the same manner as the budget. e) As soon as practicable after the end of each district fiscal year, the director shall prepare and present to the board and to each participating jurisdiction in writing a sworn statement of all money received by the district and how the money was used during the preceding fiscal year. The report must show in detail the operations of the district for the fiscal year covered by the report. f) The board shall have an independent financial audit of the district performed annually. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. Amended by Acts 1999, 76th Leg., ch. 1406, § 2, eft. Aug. 30, 1999. 772.310. Establishment of 9-1-1 Service a) A district shall provide 9-1-1 service to each participating jurisdiction through one or a combination of the following methods and features: 1) the transfer method; 2) the relay method; 3) the dispatch method; 4) automatic number identification; 5) automatic location identification; 6) selective routing; or 7) any equivalent method. b) A district shall provide 9-1-1 service using one or both of the following plans: 1) the district may design, implement, and operate a 9-1-1 system for each participating jurisdiction with the consent of the jurisdiction; or 2) the district may design, implement, and operate a 9-1-1 system for two or more participating jurisdictions with the consent of each of those jurisdictions if a joint operation would be more economically feasible than separate systems for each jurisdiction. c) Under either plan authorized by Subsection (b), the final plans for the particular system must have the approval of each participating jurisdiction covered by the system. d) The district shall recommend minimum standards for a 9-1-1 system. e) A service supplier involved in providing 9-1-1 service, a manufacturer of equipment used in providing 9-1-1 service, or an officer or employee of a service supplier involved in providing 9-1-1 service is not liable for any claim, damage, or loss arising from the provision of 9-1-1 service unless the act or omission proximately causing the claim, damage, or loss constitutes gross negligence, recklessness, or intentional misconduct. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 638, § 16, eft'. Sept. 1, 1995. 772.311. Primary Emergency Telephone Number The digits 9-1-1 are the primary emergency telephone number in a district. A public safety agency whose services are available through a 9-1-1 system may maintain a separate number or numbers for emergencies and shall maintain a separate number or numbers for nonemergency telephone calls. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.312. Transmitting Requests For Emergency Aid a) A 9-1-1 system established under this subchapter must be capable of transmitting requests for fire-fighting, law enforcement, ambulance, and medical services to a public safety agency or agencies that provide the requested service at the place from which the call originates. A 9-1-1 system may also provide for transmitting requests for other emergency services such as poison control, suicide prevention, and civil defense. b) A public safety answering point may transmit emergency response requests to private safety entities. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.313. Powers of District a) The district is a body corporate and politic, exercising public and essential governmental functions and having all the powers necessary or convenient to carry out the purposes and provisions of this subchapter, including the capacity to sue or be sued. b) To fund the district, the district may apply for, accept, and receive federal, state, county, or municipal funds and private funds and may spend those funds for the purposes of this subchapter. The board shall determine the method and sources of funding for the district. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.314. 9-1-1 Emergency Service Fee a) The board may impose a 9-1-1 emergency service fee on service users in the district. b) The fee may be imposed only on the base rate charge or its equivalent, excluding charges for coin-operated telephone equipment. The fee may not be imposed on more than 100 local exchange access lines or their equivalent for a single business entity at a single location, unless the lines are used by residents of the location. The fee may also not be imposed on any line that the Advisory Commission on State Emergency Communications excluded from the definition of a local exchange access line or an equivalent local exchange access line pursuant to Section 771.063. If a business service user provides residential facilities, each line that terminates at a residential unit and that is a communication link equivalent to a residential local exchange access line shall be charged the 9-1-1 emergency service fee. The fee must have uniform application and must be imposed in each participating jurisdiction. c) The rate of the fee may not exceed six percent of the monthly base rate in a service year charged a service user by the principal service supplier in the participating jurisdiction. For purposes of this subsection, the jurisdiction of the county is the unincorporated area of the county. d) The board shall set the amount of the fee each year as part of the annual budget. The board shall notify each service supplier of a change in the amount of the fee not later than the 91st day before the date the change takes effect. e) In imposing the fee, the board shall attempt to match the district's revenues to its operating expenditures and to provide reasonable reserves for contingencies and for the purchase and installation of 9-1-1 emergency service equipment. If the revenue generated by the fee exceeds the amount of money needed to fund the district, the board by resolution shall reduce the rate of the fee to an amount adequate to fund the district or suspend the imposition of the fee. If the board suspends the imposition of the fee, the board by resolution may reinstitute the fee if money generated by the district is not adequate to fund the district. f) In a public agency whose governing body at a later date votes to receive 9-1-1 service from the district, the fee is imposed beginning on the date specified by the board. The board may charge the incoming agency an additional amount of money to cover the initial cost of providing 9-1-1 service to that agency. The fee authorized to be charged in a district applies to new territory added to the district when the territory becomes part of the district. g) For the purposes of this section, the jurisdiction of the county is the unincorporated area of the county. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. Amended by Acts 1993, 73rd Leg., ch. 936, § 14, eft. Aug. 30, 1993; Acts 1999, 76th Leg., ch. 1203, § 5, eft. June 18, 1999. 772.315. Collection of Fee a) Each billed service user is liable for the fee imposed under Section 772.314 until the fee is paid to the service supplier. The fee must be added to and stated separately in the service user's bill from the service supplier. The service supplier shall collect the fee at the same time as the service charge to the service user in accordance with the regular billing practice of the service supplier. A business service user that provides residential facilities and owns or leases a publicly or privately owned telephone switch used to provide telephone service to facility residents shall collect the 9-1-1 emergency service fee and transmit the fees monthly to the district. b) The amount collected by a service supplier from the fee is due monthly. The service supplier shall remit the amount collected in a calendar month to the district not later than the 60th day after the last day of the calendar month. With each payment the service supplier shall file a return in a form prescribed by the board. c) Both a service supplier and a business service user under Subsection (a) shall maintain records of the amount of fees it collects for at least two years after the date of collection. The board may require at the board's expense an annual audit of a service supplier's books and records or the books and records of a business service user described by Subsection (a) with respect to the collection and remittance of the fees. d) A business service user that does not collect and remit the 9-1-1 emergency service fee as required is subject to a civil cause of action under Subsection (g). A sworn affidavit by the district specifying the unremitted fees is prima facie evidence that the fees were not remitted and of the amount of the unremitted fees. e) A service supplier is entitled to retain an administrative fee from the amount of fees it collects. The amount of the administrative fee is two percent of the amount of fees it collects under this section. f) A service supplier is not required to take any legal action to enfome the collection of the 9-1-1 emergency service fee. However, the service supplier shall provide the district with an annual certificate of delinquency that includes the amount of all delinquent fees and the name and address of each nonpaying service user. The certificate of delinquency is prima facie evidence that a fee included in the certificate is delinquent. A service user account is considered delinquent if the fee is not paid to the service supplier before the 31st day after the payment due date stated On the user's bill from the service supplier. g) The district may institute legal proceedings to collect fees not paid and may establish internal collection procedures and recover the cost of collection from the nonpaying service user. If the district prevails in legal proceedings instituted to collect a fee, the court may award the district court costs, attorney's fees, and interest in addition to other amounts recovered. A delinquent fee accrues interest at an annual rate of 12 percent beginning on the date the payment becomes due. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. Amended by Acts 1993, 73rd Leg., ch. 936, § 15, eft. Aug. 30, 1993; Acts 1995, 74th Leg., ch. 638, § 17, eft. Sept. 1, 1995. 772.316. District Depository a) The board shall select a depository for the district in the manner provided by law for the selection of a county depository. b) A depository selected by the board is the district's depository for two years after the date of its selection and until a successor depository is selected and qualified. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.317. Allowable Expenses Allowable operating expenses of a district include all costs attributable to designing a 9-1-1 system and to all equipment and personnel necessary to establish and operate a public safety answering point and other related answering points that the board considers necessary, Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.318. Number and Location Identification a) As part of computerized 9-1-1 service, a service supplier shall furnish current telephone numbers of subscribers and the addresses associated with the numbers on a call-by-call basis. b) A business service user that provides residential facilities and owns or leases a publicly or privately owned telephone switch used to provide telephone service to facility residents shall provide to those residential end users the same level of 9-1-1 service that a service supplier is required to provide under Subsection (a) to other residential end users in the district. c) Information furnished under this section is confidential and is not available for public inspection. d) A service supplier or business service user under Subsection (b) is not liable to a person who uses a 9-1-1 system created under this subchapter for the release to the district of the information specified in Subsections (a) and (b). Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. Amended by Acts 1993, 73rd Leg., ch. 936, § 16, eft. Aug. 30, 1993; Acts 1995, 74th Leg., ch. 638, § 18, eft. Sept. 1, 1995. 772.319. Public Review a) Periodically, the board shall solicit public comments and hold a public review hearing on the continuation of the district and the 9-1-1 emergency service fee. The first hearing shall be held three years after the date the order certifying the creation of the district is filed with the county clerks. Subsequent hearings shall be held three years after the date each order required by Subsection (d) is adopted. b) The board shall publish notice of the time and place of the hearing once a week for two consecutive weeks in a daily newspaper of general circulation published in the district. The first notice must be published not later than the 16th day before the date set for the hearing. c) At the hearing, the board shall also solicit comments on the participation of the district in the applicable regional plan for 9-1-1 service under Chapter 771. After the hearing, the board may choose to participate in the regional plan as provided by that chapter. d) After the hearing, the board shall adopt an order on the continuation or dissolution of the district and the 9-1-1 emergency service fee. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.320. Dissolution Procedures a) If a district is dissolved, 9-1-1 service must be discontinued on the date of the dissolution. The commissioners court of the county in which the district was located or, if the district contains more than one county, the commissioners courts of those counties acting jointly, shall assume the assets of the district and pay the district's debts. If the district's assets are insufficient to retire all existing debts of the district on the date of dissolution, the commissioners court or courts acting jointly shall continue to impose the 9-1-1 service fee, and each service supplier shall continue to collect the fee for the commissioners court or courts. Proceeds from the imposition of the fee after dissolution of the district may be used only to retire the outstanding debts of the district. b) The commissioners court or courts shall retire the district's debts to the extent practicable according to the terms of the instruments creating the debts and the terms of the orders and resolutions authorizing creation of the debts. c) The commissioners court or courts by order may adopt the rules necessary to administer this section. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.321. Issuance of Bonds The board may issue and sell bonds in the name of the district to finance: 1) the acquisition by any method of facilities, equipment, or supplies necessary for the district to begin providing 9-1-1 service to all participating jurisdictions; and 2) the installation of equipment necessary for the distdct to begin providing 9-1-1 service to all participating jurisdictions. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.322. Repayment of Bonds The board may provide for the payment of the principal of and interest on the bonds by pledging all or any part of the district's revenues from the 9-1-1 emergency service fee or from other sources. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.323. Additional Security for Bonds a) The bonds may be additionally secured by a deed of trust or mortgage lien on part or all of the physical properties of the district and the rights appurtenant to those properties, vesting in the trustee power to sell the properties for payment of the indebtedness, power to operate the properties, and all other powers necessary for the further security of the bonds. b) The trust indenture, regardless of the existence of the deed of trust or mortgage lien on the properties, may include provisions prescribed by the board for the security of the bonds and the preservation of the trust estate and may make provisions for investment of funds of the district. c) A purchaser under a sale under the deed of trust or mortgage lien is the absolute owner of the properties and rights purchased and may maintain and operate them. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.324. Form of Bonds a) A district may issue its bonds in various series or issues. b) Bonds may mature serially or otherwise not more than 25 years after their date of issue and shall bear interest at any rate permitted by state law. c) A district's bonds and interest coupons, if any, are investment securities under the terms of Chapter 8, Business & Commerce Code, may be issued registrable as to principal or as to both principal and interest, and may be made redeemable before maturity, at the option of the district, or contain a mandatory redemption provision. d) A district may issue its bonds in the form, denominations, and manner and under the terms, and the bonds shall be signed and executed, as provided by the board in the resolution or order authorizing their issuance. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.325. Provisions of Bonds a) In the orders or resolutions authorizing the issuance of bonds, including refunding bonds, the board may provide for the flow of funds and the establishment and maintenance of the interest and sinking fund, the reserve fund, and other funds and may make additional covenants with respect to the bonds, the pledge revenues, and the operation and maintenance of any facilities the revenue of which is pledged. b) The orders or resolutions of the board authorizing the issuance of bonds may also prohibit the further issuance of bonds or other obligations payable from the pledged revenue or may reserve the right to issue additional bonds to be secured by a pledge of and payable from the revenue on a parity with or subordinate to the lien and pledge in support of the bonds being issued. c) The orders or resolutions of the board issuing bonds may contain other provisions and covenants as the board may determine. d) The board may adopt and have executed any other proceedings or instruments necessary and convenient in the issuance of bonds. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.326. Approval and Registration of Bonds a) Bonds issued by a district must be submitted to the attorney general for examination. b) If the attorney general finds that the bonds have been authorized in accordance with law, the attorney general shall approve them. On approval by the attorney general, the comptroller shall register the bonds. c) After the approval and registration of bonds, the bonds are incontestable in any court or other forum for any reason and are valid and binding obligations according to their terms for all purposes. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.327. Refunding Bonds a) A district may issue bonds to refund all or any part of its outstanding bonds, including matured but unpaid interest coupons. b) Refunding bonds shall mature serially or otherwise not more than 25 years after their date of issue and shall bear interest at any rate or rates permitted by state law. c) Refunding bonds may be payable from the same source as the bonds being refunded or from other sources. d) The refunding bonds must be approved by the attorney general as provided by Section 772.326 and shall be registered by the comptroller on the surrender and cancellation of the bonds refunded. e) The orders or resolutions authorizing the issuance of the refunding bonds may provide that they be sold and the proceeds deposited in the place or places at which the bonds being refunded are payable, in which case the refunding bonds may be issued before the cancellation of the bonds being refunded. If refunding bonds are issued before cancellation of the other bonds, an amount sufficient to pay the principal of the bonds being refunded and interest on those bonds accruing to their maturity dates or to their option dates if the bonds have been duly celled for payment before maturity according to their terms shall be deposited in the place or places at which the bonds being refunded are payable. The comptroller shall register the refunding bonds without the surrender and cancellation of bonds being refunded. f) A refunding may be accomplished in one or in several installment deliveries. Refunding bonds and their interest coupons are investment securities under Chapter 8, Business & Commeme Code. g) In lieu of the method set forth in Subsections (a)-(f), a district may refund bonds, notes, or other obligations as provided by the general laws of this state. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.328. Bonds as Investments and Security for Deposits a) District bonds are legal and authorized investments for: 1) a bank; 2) a savings bank; 3) a trust company; 4) a savings and loan association; 5) an insurance company; 6) a fiduciary; 7) a trustee; 8) a guardian; and 9) a sinking fund of a municipality, county, school district, and other political subdivision of the state and other public funds of the state and its agencies, including the permanent school fund. b) District bonds are eligible to secure deposits of public funds of the state and municipalities, counties, school districts, and other political subdivisions of the state. The bonds are lawful and sufficient security for deposits to the extent of their value when accompanied by all unmatured coupons. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989. 772.329. Tax Status of Bonds Because a district created under this subchapter is a public entity performing an essential public function, bonds issued by the district, any transaction relating to the bonds, and profits made in the sale of the bonds are exempt from taxation by the state or by any municipality, county, special district, or other political subdivision of the state. Acts 1989, 71st Leg., ch. 678, § 1, eft. Sept. 1, 1989.