Loading...
HomeMy WebLinkAbout060322 Friday Staff Report City Manager’s Office 215 E. McKinney St., Denton, TX 76201  (940) 349-8307 OUR CORE VALUES Integrity  Fiscal Responsibility  Inclusion  Transparency  Outstanding Customer Service MEMORANDUM DATE: June 3, 2022 TO: The Honorable Mayor Hudspeth and Council Members FROM: Sara Hensley, City Manager SUBJECT: Staff Report I. Council Schedule Meetings 1. Board of Ethics on Monday, June 6, 2022, at 6:00 p.m. in the City Council Work Session Room. 2. Parks, Recreation and Beautification Board on Monday, June 6, 2022, at 6:00 p.m. in the Civic Center Community Room. 3. Work Session of the City Council on Tuesday, June 7, 2022, at 2:00 pm. in the City Council Work Session Room followed by a Regular Meeting at 6:30 p.m. in the Council Chambers. 4. Cancelled - Economic Development Partnership Board on Wednesday, June 8, 2022, at 11:00 a.m. at the Development Service Center. 5. Airport Advisory Board on Wednesday, June 8, 2022, at 3:00 p.m. in the Airport Terminal Meeting Room. 6. Work Session of the Planning and Zoning Commission on Wednesday, June 8, 2022, at 5:00 p.m. followed by a Regular Meeting at 6:30 p.m. in the Council Chambers. 7. Cancelled - Health and Building Standards Commission on Thursday, June 9, 2022, at 3:00 p.m. at the Development Service Center. 8. Cancelled - Development Code Review Committee on Friday, June 10, 2022, at 10:00 a.m. at the Development Service Center. 9. Community Services Advisory Committee on Friday, June 10, 2022, at 12:00 p.m. at the Development Service Center. 10. Committee on the Environment on Friday, June 10, 2022, at 1:00 p.m. at the Sustainability Office. II. General Information & Status Update A. Pending Council Requests Work Session Topics – Pursuant to Ordinance No. 21- 1837, the following items will be discussed during the June 7 Council Work Session. Each week, the topics included on the next week’s agenda will be in the Friday Report with more information, including the specific request language and staff information, available in the posted agenda for that meeting. 1) A Council vote to increase the allotted time for public comment from four to five minutes. (Byrd) 2) A work session to discuss incentives and or requirements for EV charging electrical circuitry and infrastructure for single-family homes with garages and multifamily developments of certain sizes. (Watts) 3) A Council vote on a resolution that directs the Denton Police Department to make investigations and criminal enforcement related to reproductive healthcare its lowest priority and recommends against using City funds for such purposes. (Maguire) 4) Authorizing staff resources to be spent in developing a policy related to panhandling and public health policy. (Hudspeth) Staff contact: Monica Benavides, City Manager’s Office B. Resident Update – The Resident Update is a City of Denton publication that is mailed to every individual household in Denton, and contains information that informs, educates, and entertains the public about City programs and operations. Staff included information in the May 20, 2022, Friday Report regarding the recommended distribution of the Update on a quarterly, seasonal, basis moving forward, rather than the every-two-month schedule that is currently in place, and requested any questions or feedback from Council Members. Materials and printing costs have risen over the past year and moving to a seasonal schedule will allow staff to better manage those costs, as well as develop seasonal themes and groupings of stories according to the school schedule and natural rhythms of activities. Under a quarterly schedule, publication groupings would be: • Winter: December, January, February • Spring: March, April, May • Summer: June, July, August • Fall: September, October, November Staff is now prepared to distribute the Update according to the new seasonal schedule beginning with the next issue. Staff contact: Stuart Birdseye, Customer Service and Public Affairs C. Distinguished Budget Presentation Award - Government Finance Officers Association is pleased to announce that the City of Denton, Texas, has received GFOA's Distinguished Budget Presentation Award for its budget beginning October 1, 2021. The award represents a significant achievement by an entity. It reflects the 2 commitment of the governing body and staff to meeting the highest principles of governmental budgeting. In order to receive the budget award, the entity had to satisfy nationally recognized guidelines for effective budget presentation. These guidelines are designed to assess how well an entity's budget serves as: • a policy document • a financial plan • an operations guide • a communications device Budget documents must be rated "proficient" in all four categories, and in the fourteen mandatory criteria within those categories, to receive the award. When a Distinguished Budget Presentation Award is granted to an entity, a Certificate of Recognition for Budget Presentation is also presented to the individual(s) or department designated as being primarily responsible for having achieved the award. This has been presented to Finance Department. There are over 1,700 participants in the Budget Awards Program. The most recent Budget Award recipients, along with their corresponding budget documents, are posted quarterly on GFOA's website. Award recipients have pioneered efforts to improve the quality of budgeting and provide an excellent example for other governments throughout North America. Staff contact: Cassey Ogden, Finance D. Tree Trimming on City Rights-of-Way: Parks Maintenance Staff will be trimming brush and trees on several rights-of-way during the month of June. In some of these locations, particularly on undeveloped land, overgrowth of vegetation interferes with walkways and roadways, compromising site lines and accessibility. To alleviate any current and short-term future issues, the city will trim brush and trees along the following street locations: • C. Wolfe- From Fm 2449 to Tom Cole • Old John Paine –Fm 2449 to County Sign • Jim Christal- Western Blvd. to County Sign • Nail Rd. – Jim Christal to Us 380 • Underwood- Fm 2449 to Springside • Springside – Underwood to Westcourt • Corbin Rd. – Springside to Deadend • Roselawn – Bonnie Brae to 377 • Bonnie Brae- Roselawn to Willowood • Cooper Creek – Cooper Creek to Silverdome • Fishtrap – Mingo to County Sign • All of Trinity Rd Starting At 380 To Mckinney St • Blagg Rd. – Trinity to Mayhill • Spencer Rd. – Loop 288 to Mayhill During this time, no roads will need to be closed, and Parks Maintenance teams will use only temporary, mobile traffic controls to maintain crew and public safety. Staff Contact: Russell Koch, Parks and Recreation E. Small Business Relief Grant Update - The City of Denton was allocated $23.29 million in federal aid through the American Rescue Plan Act – State and Local Fiscal 3 Recovery Funds (SLFRF) across two years. Half of the funding ($11.65 million) became available in June 2021. On July 27, 2021, Denton City Council approved $2 million of one-time grant funding to support small businesses based on feedback from the community. The Grant Office worked with Economic Development and the Denton Chamber of Commerce to develop a program and the Small Business Rent and Mortgage Relief Grant was created. City Council approved the program criteria on March 1, 2022. SLFRF requires recipients of funds to demonstrate an economic loss associated with the COVID-19 global pandemic. Applicants must also be headquartered in the City of Denton. Rent and mortgage payments for a business property made between March 1, 2020 and August 1, 2020 are eligible for reimbursement under the program up to $40,000. Rent and mortgage payments that are still outstanding or due during this time may also be eligible. This timeframe covers the most restrictive requirements placed on business operations and openings at the beginning of the pandemic. Awarded funding may be used in various ways to support and sustain operations, such as personnel costs, rent/mortgage payments, and equipment/supplies, with a goal of returning to pre- pandemic business levels. Recipients will be required to report how the funds were used to support and sustain the business at a 6-month and 12-month period over the term of the grant. On Wednesday June 1, 2022 the grant opportunity was made available online to local businesses and was posted on the Economic Development webpage at https://www.cityofdenton.com/281/Small-Business-Resources. Economic Development has included a link to the webpage in their weekly email to downtown businesses and is sharing the post on their social media. Applications are due on July 1, 2022. Awards are expected to be made in the July / August timeframe. Staff Contact: Daniel Jones, Daniel.Jones@cityofdenton.com F. DTV Video Highlights for May - In addition to producing public meetings, staff continues to collaborate on videos this month that raise awareness, educate, inform, and inspire our community. We would like to highlight a few in the Friday Report and encourage Council to share them. • LSA Burger Co. Mural Project: YouTube, Facebook Every year, LSA Burger and the Greater Denton Arts Council commission 6 new artists to paint murals. • Summer Reading Challenge 2022: YouTube, Facebook Can't put your book down? Then the Summer Reading Challenge is JUST FOR YOU! Through July 30, you can earn a free book when you read for 5 hours, and another free book when you read for 10 hours! • Hull Millwork Window Workshop: YouTube, Facebook Master Builder Brent Hull of Hullworks in Fort Worth joined us at the Emily Fowler Library to talk about the importance of Historic Architecture, while providing some hands-on training for those looking to restore historic wooden windows. 4 All videos air on DTV, are shared via social media channels and are available on the City’s YouTube channel. Staff contact: Billy Matthews, Customer Service and Public Affairs III. Responses to Council Member Requests for Information A. Resident Rental Assistance Application – On May 20, Mayor Hudspeth asked staff to assist a resident who had questions related to her United Way rental assistance application. Staff was able to contact United Way and learned the resident’s application is in process. Staff also notified the resident with an update and to facilitate communication with United Way. Staff contact: Megan Ball, Community Services B. Mowing at IOOF Cemetery – On May 31, Mayor Hudspeth received a question from a resident regarding tall grass and the need for mowing at IOOF Cemetery. What the concerned resident identified as18” high grass was instead KR Bluestem, a noxious bunchgrass found throughout the city. KR Bluestem is taller than Bermuda turf and creates an especially unkempt appearance as its seed spikes rise above the uniform surface of mowed turf. KR Bluestem has proven to be the bane of turf managers all across the South especially as there is not an easily deployed herbicidal, biological, or cultural method of controlling the weed outside of discing, a mechanically intensive process involving removing weed root systems with heavy equipment, or possibly a controlled burn. Denton cemeteries are all mowed once every two weeks, but KR Bluestem is so fast-growing that its seed spikes grow in the interval between each mowing. Control of this weed is difficult, and it does pose an aesthetic challenge, particularly in areas like IOOF Cemetery. By adhering to the current mowing schedule, Parks staff are able to keep KB Bluestem growth in check but may be unsightly at times. Staff contact: Marshal McGee, Parks and Recreation C. Fred Moore Park Dog Bag Dispenser – On June 1, staff received an email from Mayor Hudspeth regarding a question from a citizen asking why the dog bag dispenser was removed from Fred Moore Park. Park Maintenance is in the process of replacing the pole to which the dispenser is attached and will be reinstalled by the end of the week. Staff contact: Russell Koch, Parks and Recreation D. Eagle Creek Development – On Sunday, May 29, 2022, a resident reached out to staff and several council members regarding a drainpipe in one of the 9 ponds on the Eagle Creek Development (generally north of Roselawn Drive & southwest of Denia Park). The resident was concerned the damaged drainpipe was creating standing water that could breed mosquitoes. The Environmental Services & Sustainability – Watershed Protection group engaged the site developer on Tuesday, May 31 regarding the drainpipe and other stormwater-related issues. The site developer is actively working to correct the stormwater-related issues including the drainpipe. The drainpipe is attached to a sedimentation basin (pond) designed to allow sediment to settle out prior to discharge by slowing down the runoff. By design, the sedimentation basin may hold standing water depending on rainfall and weather conditions. The drainpipe would only allow pond discharge during higher volume rain events. 5 The Watershed Protection group shares information with site developers regarding best management practices for controlling mosquitoes. Since these sedimentation basins are part of a private development, the City is not directly involved with any mosquito control. Watershed Protection will continue to monitor the site for stormwater compliance and share mosquito best management practices. Staff Contact: Michael Gange, Environmental Services & Sustainability E. Water Coolers in Easement – On May 20, Mayor Hudspeth inquired if several water coolers tied to a tree along Brinker Road were in the city easement. After an on-site inspection, the coolers were found to be in the easement. The owners of the coolers were requested to move the coolers from the easement or relocate them to nearby private property. Staff contact: Ryan Adams, City Manager’s Office F. Old North Road Community Meeting – On May 31, Mayor Pro Team Beck asked staff for additional clarification on the Old North Community Meeting that is scheduled for Thursday, June 9, 2022, at 6:00 PM. Residents are encouraged to visit https://www.cityofdenton.com/449/Community-Input-Meetings to register for the meeting. A copy of the Webinar Registration can be found below. The Community meeting is scheduled in response to the March 28 concerns expressed about the safety and operation of bicycle and pedestrian traffic along with on-street parking on Old North Road from Windsor Drive to University Drive raised by Mayor Pro Tem Beck. Staff communicated in the April 1, 2022, Friday Report that they would schedule a public meeting to understand the community’s concerns, receive feedback from the residents, and work towards possible solutions. Representatives from the Capital Projects/Engineering Department, Police Department, and Public Works/Traffic Operations Department will be in attendance to listen to the concerns raised. Staff contact: Brett Bourgeois, Capital Projects/Engineering G. Resident Concern of Replacement Grass Watering – On May 27, Council Member Watts asked staff about whose responsibility it was to water and maintain newly laid grass that was replaced on their property after an Atmos gas project. He was told by the contractors that the newly laid grass is the property owner’s responsibility to water. It is the contractor’s responsibility to establish grass in areas that have been disturbed. Once established the upkeep of the grass falls on the reside nt. Staff 6 investigated the location and determined this was an Atmos project relating to gas lines. Staff contacted Atmos and they communicated to the City they intend to replace the grass this week. Atmos received a Right of Way permit from the City to perform this work, the City will not close the permit until the work is complete. Staff contact: Trevor Crain, Capital Projects/Engineering H. Driver Feedback Signs - On December 21, 2021, Mayor Hudspeth sent a request asking to add driver feedback signs in strategic locations around Southeast Denton. These signs provide a dynamic display of vehicle speed as drivers approach the sign and are typically installed to encourage compliance with posted speed limits. In response to this request, Staff purchased four solar-powered driver feedback signs and initiated a pilot driver feedback sign program for deployment in Southeast Denton. This pilot program builds on recently conducted speed studies on streets in Southeast Denton summarized below, which have been an ongoing focus of the Denton Police Department’s high visibility enforcement efforts. According to recently published draft guidance in the Institute of Transportation Engineers (ITE) publication “A Guide to Speed Reduction Techniques”, speed reduction associated with driver feedback signs achieves reductions in average and 85th percentile speed of 3 mph to 4 mph, and more importantly 57 to 66 percent reduction in vehicles traveling 5+ and 10+ mph over the posted speed limit. The pilot driver feedback sign program will compare historical speed study results to new data collected during the pilot period. A protocol for the duration of driver feedback signposting and relocation to other streets in Southeast Denton has not been established and will be determined based on the results of the initial deployments located on Kerley Street between Duncan Street and Shady Oaks Drive, and on Morse Street between Duncan Street and Newton Street. Driver Feedback Signs will be one of the many safety and speed options evaluated during the Vision Zero Action Plan. Staff Contact: Brett Bourgeois, Capital Projects/Engineering, Lt. Mike Christian, Police Department, Pritam Deshmukh, Transportation Planning and James Andrews, Traffic Operations Southeast Denton Speed Studies Street Traffic Count Date 85th Percentile Observed (mph) Kerley Street 08/23/2021 35 Chambers Street 07/12/2021 23 Ruth Street 06/19/2021 27 Lakey Street 06/14/2021 27 Morse Street 06/14/2021 35 Hill Street 01/30/2021 26 Ruth Street 08/08/2020 29 Kerley Street 02/15/2016 37 I. Fitch and S&P Global Bond Credit Rating - The purpose of this update is to provide City Council notice of recent bond credit ratings from Fitch Ratings (Fitch) and Standard & Poor’s (S&P) for the upcoming GO and CO bond sales. City Council is scheduled to consider the adoption of bond ordinances to authorize the bond sales on June 7, 2022. On April 5, 2022, City Council adopted ordinances (22-559 and 22-560) directing the publication of a Notice of Intention to Issue Certificates of Obligation of the City of Denton. On May 11th, staff and the City’s financial advisor, Hilltop 7 Securities Inc., participated in conference calls with analysts from Fitch and S&P to discuss the City’s financials and upcoming GO and CO bond sales. As a result of these conference calls, and a review of financial information, both Fitch and S&P assigned a rating of ‘AA+’ to the City’s upcoming bond sales. There is no change to either rating from the prior year. This is the second-highest rating offered by either rating agency. For your review, staff has attached the rating reports and ratings chart for both rating agencies. Staff Contact: Randee Klingele, Finance IV. Information from the City Manager A. None V. Upcoming Community Events and Meetings A. None VI. Attachments A. Draft Denton Reproductive Healthcare Resolution ...................................................9 B. Fitch Ratings Report ................................................................................................13 VII. Informal Staff Reports A. 2022-034 HOT Fund and Sponsorship Update .......................................................31 B. 2022-035 ARPA State and Local Fiscal Recovery Funds (SLFRF) .......................40 C. 2022-036 TMPA Board Member Nomination ........................................................44 VIII. Council Information A. Council Requests for Information ...........................................................................46 B. Public Meeting Calendar .........................................................................................48 C. Future Work Session Items .....................................................................................51 D. Street Construction Report ......................................................................................53 8 DRAFT RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, AFFIRMING THE RIGHTS OF INDIVIDUALS TO MAKE PRIVATE REPRODUCTIVE DECISIONS AND DEPRIORITIZING USE OF CITY RESOURCES FOR INVESTIGATION OR ENFORCEMENT OF LAWS RELATED TO REPRODUCTIVE HEALTHCARE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton honors the right of pregnant persons to bodily autonomy and control over their private medical decisions; and WHEREAS, access to safe and legal abortion is a major factor in the long-term health, safety, and quality of life of pregnant people; and WHEREAS, the Supreme Court of the United States has overturned the landmark ruling,Roe v. Wade, which previously prevented individual states from directly banning such care; and WHEREAS, on June 16, 2021, Texas Governor Greg Abbott signed into law HB 1280, an indiscriminate criminalization of abortion at the level of a first-degree felony, carrying a sentence of up to 99 years in prison, with no exceptions for rape and incest, which Act will take effect statewide 30 days after Roe v. Wade is overturned; and WHEREAS, people have a basic human right to medical treatment, up to and including abortion; and WHEREAS, eliminating legal access to abortion has been empirically proven to dramatically increase the risk of death, bodily injury, and infertility, while doing little to reduce the incidence of abortion; and WHEREAS, the resources of the City must always be dedicated to the 9 health and wellbeing of its residents; and WHEREAS, in the 1973 Roe v. Wade majority opinion, Supreme Court Justice Harry Blackmun stated, “[The] right of privacy, whether it be founded in the Fourteenth Amendment’s concept of personal liberty and restrictions upon state action, as we feel it is, or, as the District Court determined, in the Ninth Amendment’s reservation of rights to the people, is broad enough to encompass a woman’s decision whether or not to terminate her pregnancy:” and WHEREAS, the right to privacy should protect doctors, patients, and all others involved in care from any criminal investigation, as long as those decisions occur without coercion, force, or negligence; and WHEREAS, equitable access to abortion care requires financial and logistical support, most often provided by abortion funds and practical support organizations who have been targeted for providing these services; and WHEREAS, the City has a responsibility to protect its residents from any violation of their human rights and any prosecution for the free exercise thereof; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: The City of Denton formally condemns any action intended to abrogate the fundamental liberties of its people and affirms its commitment to protecting people’s right to make reproductive health decisions for themselves and their families, including abortion care. BE IT FURTHER RESOLVED: It is the policy of the City that, except to the extent otherwise required by state or federal law, City funds will not be used to: 10 ●Store or catalog any report of abortion, miscarriage, or any other event that could be prosecuted as a violation of state law criminalizing pregnancy outcomes ●Provide information to any other governmental body or agency about pregnancy outcomes, unless such information is provided to defend the patient’s right to reproductive care, including abortion care, or the healthcare provider’s right to provide such care; and ●Conduct surveillance or collect data or other information related to any individual, organization, location, vehicle, action, financial record, or internet activity for the purpose of determining whether an abortion has occurred, except for the collection of aggregated data without personally identifying information or personal health information for purposes unrelated to criminal investigation, enforcement, or prosecution. It is the intention of the City of Denton that this policy does not apply in cases of conduct that is criminally negligent to the health of the pregnant person seeking care or where coercion or force is used against the pregnant person. BE IT FURTHER RESOLVED: It is the further policy of the City that investigation of or support for the prosecution of any allegation, charge, or information relating to a pregnancy outcome or any party thereto will be the lowest priority for enforcement and the use or assignment of resources and personnel, except in cases of conduct that is criminally negligent to the health of the pregnant person seeking care, where coercion or force is used against the pregnant person, or where the pregnancy outcome is not the crime being investigated but evidence of another crime, such as sexual assault. BE IT FURTHER RESOLVED: 11 The City Manager is directed to take appropriate steps to implement this resolution and to provide an oral presentation and written report to Council on the implementation of this resolution, including changes to policies and procedures, by ____, 2022, and to provide a written report to Council on the implementation of this resolution by ____, 2022. The City Manager may return to the council for authorization of any needed policy clarifications or changes in the event of future changes to federal law, state law, or technology that affect this resolution. ADOPTED:, 2022 ATTEST: 12 May 24, 2022 Ms. Cassandra Ogden Director of Finance Denton 215 East McKinney Street Denton, TX 76201 Dear Ms. Ogden: Fitch Ratings has assigned one or more ratings and/or otherwise taken rating action(s), as detailed in the attached Notice of Rating Action. In issuing and maintaining its ratings, Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. The manner of Fitch's factual investigation and the scope of the third-party verification it obtains will vary depending on the nature of the rated security and its issuer, the requirements and practices in the jurisdiction in which the rated security is offered and sold and/or the issuer is located, the availability and nature of relevant public information, access to the management of the issuer and its advisers, the availability of pre-existing third-party verifications such as audit reports, agreed-upon procedures letters, appraisals, actuarial reports, engineering reports, legal opinions and other reports provided by third parties, the availability of independent and competent third-party verification sources with respect to the particular security or in the particular jurisdiction of the issuer, and a variety of other factors. Users of Fitch's ratings should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings Fitch must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings can be affected by future events or conditions that were not anticipated at the time a rating was issued or affirmed. Fitch seeks to continuously improve its ratings criteria and methodologies, and periodically updates the descriptions on its website of its criteria and methodologies for securities of a given type. The criteria and methodology used to determine a rating action are those in effect at the time the rating action is taken, which for public ratings is the date of the related rating action commentary. Each rating action commentary provides information about the criteria and methodology used to arrive at the stated rating, which may differ from the general criteria and methodology for the applicable security type posted on the website at a given time. For this reason, you should always consult the applicable rating action commentary for the most accurate information on the basis of any given public rating. 13 Ratings are based on established criteria and methodologies that Fitch is continuously evaluating and updating. Therefore, ratings are the collective work product of Fitch and no individual, or group of individuals, is solely responsible for a rating. All Fitch reports have shared authorship. Individuals identified in a Fitch report were involved in, but are not solely responsible for, the opinions stated therein. The individuals are named for contact purposes only. Ratings are not a recommendation or suggestion, directly or indirectly, to you or any other person, to buy, sell, make or hold any investment, loan or security or to undertake any investment strategy with respect to any investment, loan or security or any issuer. Ratings do not comment on the adequacy of market price, the suitability of any investment, loan or security for a particular investor (including without limitation, any accounting and/or regulatory treatment), or the tax-exempt nature or taxability of payments made in respect of any investment, loan or security. Fitch is not your advisor, nor is Fitch providing to you or any other party any financial advice, or any legal, auditing, accounting, appraisal, valuation or actuarial services. A rating should not be viewed as a replacement for such advice or services. The assignment of a rating by Fitch does not constitute consent by Fitch to the use of its name as an expert in connection with any registration statement or other filings under US, UK or any other relevant securities laws. Fitch does not consent to the inclusion of its ratings in any offering document in any instance in which US, UK or any other relevant securities laws requires such consent. Fitch does not consent to the inclusion of any written letter communicating its rating action in any offering document. You understand that Fitch has not consented to, and will not consent to, being named as an "expert" in connection with any registration statement or other filings under US, UK or any other relevant securities laws, including but not limited to Section 7 of the U.S. Securities Act of 1933. Fitch is not an "underwriter" or "seller" as those terms are defined under applicable securities laws or other regulatory guidance, rules or recommendations, including without limitation Sections 11 and 12(a)(2) of the U.S. Securities Act of 1933, nor has Fitch performed the roles or tasks associated with an "underwriter" or "seller" under this engagement. Fitch will continue to monitor the credit quality of and maintain ratings on the Issuer/Securities. It is important that you promptly provide us with all information that may be material to the ratings so that our ratings continue to be appropriate. Ratings may be raised, lowered, withdrawn, or placed on Rating Watch due to changes in, additions to, accuracy of or the inadequacy of information or for any other reason Fitch deems sufficient. Nothing in this letter is intended to or should be construed as creating a fiduciary relationship between Fitch and you or between us and any user of the ratings. In this letter, "Fitch" means Fitch Ratings, Inc. and any successor in interest. Public ratings will be valid and effective only upon publication of the ratings on Fitch’s website. We are pleased to have had the opportunity to be of service to you. If we can be of further assistance, please feel free to contact us at any time. Laura Porter Managing Director - Global Group Head Public Finance LP/em Enc: Notice of Rating Action (Doc ID:249510 Rev 0) 14 Page 1 of 1 Notice of Rating Action Bond Description Rating Type Rating Action Rating Outlook/ Watch Eff Date Notes Denton (TX) certificates of oblig ser 2022 Long Term Rating New Rating AA+ RO:Sta 2022-05-24 00:00:24.0 Denton (TX) certificates of oblig ser 2022 Unenhanced Long Term Rating New Rating AA+RO:Sta 2022-05-24 00:00:24.0 Denton (TX) GO rfdg & improv bonds ser 2022 Long Term Rating New Rating AA+ RO:Sta 2022-05-24 00:00:24.0 Denton (TX) GO rfdg & improv bonds ser 2022 Unenhanced Long Term Rating New Rating AA+RO:Sta 2022-05-24 00:00:24.0 Key:RO: Rating Outlook, RW: Rating Watch, Pos: Positive, Neg: Negative, Sta: Stable, Evo: Evolving 15 New Issue │ May 26, 2022 fitchratings.com 1 Public Finance Tax-Supported U.S.A. Denton, Texas New Issue Summary Sale Date: Competitive sale scheduled on or around June 16, 2022 Series: $89,000,000 General Obligation Refunding & Improvement Bonds, Series 2022; $121,000,000 Certificates of Obligation, Series 2022 Purpose: GO and CO proceeds will be used to finance various public improvements. A portion of the GO proceeds will be used to refund outstanding debt for interest cost savings Security: The GOs and COs are secured by an ad valorem tax levied on all taxable property within the city, limited to $2.50 per $100 of TAV. The COs are additionally secured by a pledge of surplus revenues of no more than $1,000 from the city's utility system. The 'AA+' IDR and limited tax obligation rating reflect superior financial resilience, supported by strong revenue growth prospects, a high degree of revenue-raising capacity, sound expenditure flexibility and available reserves at close to 30% of expenditures. The rating also incorporates the expectation that the long-term liability burden will remain moderately elevated. Economic Resource Base: With a population of about 143,000, Denton is located at the northern end of the Dallas-Fort Worth metro area. The local economy features institutions of higher education, a regionally prominent medical sector, and a strong warehousing and manufacturing base, leveraging the city's multi-modal transportation network. Key Rating Drivers Revenue Framework: 'aaa': Fitch expects Denton's diverse and expanding tax base and operating revenues to continue to grow at a pace in excess of U.S. GDP. Independent revenue control is high relative to expected revenue volatility during normal economic cycles. Expenditure Framework: 'aa': Fitch expects that the city's pace of spending will be marginally above revenue growth. Discretion with respect to workforce and other operating costs provide the city with adequate flexibility to address economic challenges. Carrying costs do n ot pressure the budget; however, debt issuances for capital needs are expected to increase carrying costs over the near term. Long-Term Liability Burden: 'a': Currently at approximately 25% of estimated personal income, Fitch expects the city's long-term liability burden to remain elevated but within the moderate range as future debt issuance plans will likely be accompanied by expansion of the resource base. The city's net pension liability (NPL) contributes a modest amount to its long-term liability burden. Operating Performance: 'aaa': Fitch anticipates Denton will maintain superior financial flexibility during economic cycles based on its high inherent budget flexibility and established financial cushion. Rating Sensitivities Factors that could, individually or collectively, lead to positive rating action/upgrade: • Sustained decrease in the long-term liability burden materially below 20% of personal income. Factors that could, individually or collectively, lead to negative rating action/downgrade: • While not expected, a weakening of the revenue growth prospects assessment due to a slowdown in economic activity. Ratings Long Term Issuer Default Rating AA+ New Issues $121,000,000 Certificates of Obligation, Series 2022 AA+ $89,000,000 General Obligation Refunding & Improvement Bonds, Series 2022 AA+ Outstanding Debt Certificates of Obligation AA+ General Obligation Bonds AA+ Rating Outlook Stable Applicable Criteria U.S. Public Finance Tax-Supported Rating Criteria (May 2021) Related Research Fitch Rates Denton, TX's $139MM COs and $82MM GOs 'AA+'; Outlook Stable (May 2022) American Rescue Plan Boosts State and Local Government Budgets (March 2021) Denton (TX) [General Government] - ESG Navigator (May 2019) Analysts Emmanuelle Lawrence +1 512 215-3740 emmanuelle.lawrence@fitchratings.com Jose Acosta +1 512 215-3726 jose.acosta@fitchratings.com 16 Denton, Texas New Issue │ May 26, 2022 fitchratings.com 2 Public Finance Tax-Supported U.S.A. • A sustained increase in carrying costs to a level above 25% of spending. Current Developments The city's financial position was strong prior to the onset of the pandemic and has remained robust through the recovery. The city's main revenue sources, property and sales taxes, continued to perform well in fiscal 2020 and 2021, despite the pandemic. Bolstered by higher than anticipated sales tax collection, the city posted a net operating surplus of $4.7 million or 4% of spending in fiscal 2021, increasing the unrestricted fund balance to $38.5 million or nearly 30% of spending. Preliminary fiscal 2022 general fund results are favorable, with management projecting an operating surplus of approximately $1.6 million by FYE. Management reports that all facilities have reopened and the city has fully resumed pre-pandemic operations. The city was allocated $23 million in American Rescue Plan Act funds, with the first half of the payment received in fiscal 2021. The funds are planned to be used for various community service, economic development, and public improvement programs. The city is anticipating receipt of the second tranche in June and is currently working through the final project list. Credit Profile Denton's location at the convergence of Interstates 35 East and West, and ready access to ai r and rail transportation have contributed to its strong warehousing and manufacturing base. The city is home to sizable distribution centers for Target, Aldi, Fastenal and WinCo. Its diverse manufacturers include Safran, Flowers Baking Company, TetraPak, and Peterbilt Motors. Denton is also known for its institutions of higher education including University of North Texas and Texas Woman's University and a regionally prominent medical sector. The city's growing health care facilities serve both north Texas and southern Oklahoma. These institutions include Columbia Medical Center Denton, Texas Health Presbyterian Hospital, and The Heart Hospital Baylor Denton. TAV has recorded a strong 9% CAGR over the last 10 years. The city's management typically budgets for an annual 4% TAV increase; however, for the past several years, TAV growth has exceeded budget projections due to strong residential, commercial and industrial growth. Additional development is reported across the city's commercial, industrial and residential property base. Management budgeted for an 8% TAV increase in fiscal 2022 and will be forecasting an aggressive 8% annual increase moving forward. Less than 50% built-out, the ample developable land positions the city well for ongoing solid growth over the medium-to- long term. Revenue Framework Taxes account for the bulk of the city's operating revenues. Based on fiscal 2021 audited results, property tax receipts accounted for nearly 40% of general fund revenues followed by sales tax receipts. Fitch believes post-pandemic revenue growth will exceed U.S. GDP, in line with historical performance, fueled by rapid population growth and economic gains, mirroring the expanding regional economy. Denton's fiscal 2022 total ad valorem tax rate of $0.5658 cents per $100 of TAV is well below the constitutional and city charter cap of $2.50, providing ample revenue raising flexibility. Any increase in the operating tax rate that produces an annual operating levy increase of more than 3.5% (the voter approval tax rate for most local taxing units) requires a ratification election. The revenue cap does not apply to debt service tax levies; the city's fiscal 2022 debt service tax rate is $0.2154 out of the total rate. Remaining control over other local revenues such as fines, fees, and charges for services is sufficient to generate a high degree of revenue-raising capacity relative to Fitch's assessment of expected modest revenue volatility in a typical downturn. Rating History (IDR) Rating Action Outlook/ Watch Date AA+ Affirmed Stable 5/24/22 AA+ Assigned Stable 3/19/12 17 Denton, Texas New Issue │ May 26, 2022 fitchratings.com 3 Public Finance Tax-Supported U.S.A. Expenditure Framework Similar to most cities, public safety is the city's largest general fund category, comprising 66% of fiscal 2021 outlays. The pace of spending is likely to grow at a rate marginally above revenue growth based on the expected rapid pace of population growth and the corresponding increase in service demands. The city maintains flexibility with respect to headcount and salary arrangements and through the discretionary nature of its pay-as-you-go capital spending program, as well as its annual contributions to funding street improvements. Since fiscal 2012, the city has allocated a large portion of its franchise fees to the street improvement fund. The city has a sizable multiyear capital improvement program, and plans to issue additional debt over the near term. As such, Fitch anticipates carrying costs (almost 17% of fiscal 2021 governmental spending) to increase over the near term but for the city to retain adequate spending flexibility. The city's annual pension contributions account for more than one-half of carrying costs; other post-employment benefits costs are minimal. Police and fire salaries and benefits are determined via three-year meet and confer agreements, providing management with strong control over its largest expenditure. Long-Term Liability Burden Fitch expects Denton's long-term liabilities, currently at about 25% of personal income, to remain in the elevated, but still moderate range based on anticipated growth in both debt and personal income. Overlapping debt (primarily from local school districts) makes up the bulk of the city's long-term liability burden. In November 2019, voters approved a nearly $221 million GO bond authorization and the city has financed various capital needs and public improvements via GO bonds and COs through 2022. The city plans to issue the remaining $91 million authorization over the near term, exhausting it by 2026. The city's pensions are provided through the Texas Municipal Retirement System, an agent multiple-employer defined-benefit plan, and the Denton Firemen's Relief and Retirement Fund, a single-employer plan. The city consistently meets its actuarially determined contribution for both plans. Under GASB Statement 68, the city reports a fiscal 2021 NPL of $77 million for both plans combined, with fiduciary assets covering 89% of total pension liabilities at the plans' 6.75% investment return assumption. Using a more conservative Fitch-adjusted 6% investment return assumption, the ratio of assets to liability declines to 80%. Operating Performance The Fitch Analytical Stress Test (FAST) scenario analysis tool relates historical tax revenue volatility to GDP to support the assessment of operating performance under Fitch's criteria. FAST is not a forecast, but it represents Fitch's estimate of possible revenue behavior in a downturn, based on historical revenue performance. Hence, actual revenue will vary from FAST results, and Fitch expects the city will implement necessary corrective actions to offset declines. FAST does provide a relative sense of the risk exposure of a particular local governmen t compared to other U.S. local governments. The city has a history of strong budgetary management, as demonstrated by its favorable operating performance. The fiscal 2021 audit indicates a surplus of $4.7 million or 4% of spending, and an increase in the unrestricted fund balance to $38.5 million or 30% of spending. Officials have consistently maintained reserve levels in accordance to a formal policy, which includes a minimum reserve level at 20% of spending plus a 5% resiliency reserve (25% combined total). The city has demonstrated a practice of applying favorable revenue performance to funding non-recurring expenditures and taking advantage of economic upturns to add to its financial cushion. Fitch expects the city to continue managing its resources prud ently to maintain a strong financial cushion. 18 Denton, Texas New Issue │ May 26, 2022 fitchratings.com 4 Public Finance Tax-Supported U.S.A. ESG Considerations Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg. 19 Denton, Texas New Issue │ May 26, 2022 fitchratings.com 5 Public Finance Tax-Supported U.S.A. Scenario Analysis Ver 48 Analyst Interpretation of Scenario Results Scenario Parameters:Year 1 Year 2 Year 3 GDP Assumption (% Change)(1.0%)0.5%2.0% Expenditure Assumption (% Change)2.0%2.0%2.0% Revenue Output (% Change)Min Y1 Stress:-1%Case Used:Moderate (1.0%)3.7%5.9% Inherent Budget Flexibility Revenues, Expenditures, and Fund Balance 2015 2016 2017 2018 2019 2020 2021 Year 1 Year 2 Year 3 Total Revenues 95,772 102,302 110,167 113,324 116,039 124,961 134,818 133,470 138,433 146,596 % Change in Revenues -6.8%7.7%2.9%2.4%7.7%7.9%(1.0%)3.7%5.9% Total Expenditures 92,523 97,686 100,561 107,078 111,706 115,292 121,964 124,403 126,891 129,429 % Change in Expenditures -5.6%2.9%6.5%4.3%3.2%5.8%2.0%2.0%2.0% Transfers In and Other Sources 118 171 288 112 1,117 113 361 357 370 392 Transfers Out and Other Uses 1,840 3,982 6,293 7,811 5,029 6,739 8,497 8,667 8,840 9,017 Net Transfers (1,722)(3,811)(6,005)(7,699)(3,912)(6,626)(8,137)(8,310)(8,470)(8,625) Bond Proceeds and Other One-Time Uses ---------- Net Operating Surplus/(Deficit) After Transfers 1,527 805 3,601 (1,453)421 3,043 4,718 757 3,072 8,542 Net Operating Surplus/(Deficit) (% of Expend. and Transfers Out)1.6%0.8%3.4%(1.3%)0.4%2.5%3.6%0.6%2.3%6.2% Unrestricted/Unreserved Fund Balance (General Fund)27,365 28,170 31,771 30,317 30,739 33,777 38,500 39,257 42,329 50,870 Other Available Funds (GF + Non-GF)---------- Combined Available Funds Balance (GF + Other Available Funds)27,365 28,170 31,771 30,317 30,739 33,777 38,500 39,257 42,329 50,870 Combined Available Fund Bal. (% of Expend. and Transfers Out)29.0%27.7%29.7%26.4%26.3%27.7%29.5%29.5%31.2%36.7% Reserve Safety Margins Moderate Minimal Limited Midrange High Superior Reserve Safety Margin (aaa)16.0%8.0%5.0%3.0%2.0% Reserve Safety Margin (aa)12.0%6.0%4.0%2.5%2.0% Reserve Safety Margin (a)8.0%4.0%2.5%2.0%2.0% Reserve Safety Margin (bbb)3.0%2.0%2.0%2.0%2.0% Denton (TX) The Fitch Analytical Stress Test (FAST) scenario analysis tool relates historical tax revenue volatility to GDP to support the assessment of operating performance under Fitch's criteria. FAST is not a forecast, but it represents Fitch's estimate of possible revenue behavior in a downturn, based on historical revenue performance. Hence, actual revenue will vary from FAST results, and Fitch expects the city will implement necessary corrective actions to offset declines. FAST does provide a relative sense of the risk exposure of a particular local government compared to other U.S. local governments. Actuals Scenario Output Inherent Budget Flexibility High Notes: Scenario analysis represents an unaddressed stress on issuer finances. Fitch's scenario analysis assumes the GDP and expenditure growth sequence shown in the 'Scenario Parameters' section. Inherent budget flexibility is the analyst's assessment of the issuer's ability to deal with fiscal stress through tax and spending policy choices, and determines the multiples used to calculate the reserve safety margin. For further details, please see Fitch's US Tax-Supported Rating Criteria. 0% 5% 10% 15% 20% 25% 30% 35% 40% 2019 2020 2021 Year 1 Year 2 Year 3 Reserve Safety Margin in an Unaddressed Stress Available Fund Balance bbb a aa aaa Actual Scenario 20 Denton, Texas New Issue │ May 26, 2022 fitchratings.com 6 Public Finance Tax-Supported U.S.A. The ratings above were solicited and assigned or maintained at the request of the rated entity/issuer or a related third party. Any exceptions follow below. DISCLAIMER & DISCLOSURES All Fitch Ratings (Fitch) credit ratings are subject to certain limitations and disclaimers. Please read these limitations and disclaimers by following this link: https://www.fitchratings.com/understandingcreditratings. In addition, the following https://www.fitchratings.com/rating-definitions-document details Fitch's rating definitions for each rating scale and rating categories, including definitions relating to default. Published ratings, criteria, and methodologies are available from this site at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance, and other relevant policies and procedures are also available from the Code of Conduct section of this site. Directors and shareholders’ relevant interests are available at https://www.fitchratings.com/site/regulatory. Fitch may have provided another permissible or ancillary service to the rated entity or its related third parties. Details of permissible or ancillary service(s) for which the lead analyst is based in an ESMA- or FCA-registered Fitch Ratings company (or branch of such a company) can be found on the entity summary page for this issuer on the Fitch Ratings website. In issuing and maintaining its ratings and in making other reports (including forecast information), Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that informa tion from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. The manner of Fitch's factu al investigation and the scope of the third-party verification it obtains will vary depending on the nature of the rated security and its issuer, the requirements and practices in the jurisdiction in which the rated security is offered and sold and/or the issuer is located, the availability and nature of relevant public information, access to the management of the issuer and its advisers, the availability of pre-existing third-party verifications such as audit reports, agreed-upon procedures letters, appraisals, actuarial reports, engineering reports, legal opinions and other reports provided by third parties, the availability of independent and competent third- party verification sources with respect to the particular security or in the particular jurisdiction of the issuer, and a variety of other factors. Users of Fitch's ratings and report s should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating or a report will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings and its reports, Fitc h must rely on the work of experts, including independent auditors with respect to financial statements and attorn eys with respect to legal and tax matters. Further, ratings and forecasts of financial and other information are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings and forecasts can be affected by future events or conditions that were not anticipated at the time a rating or forecast was issued or affirmed. The information in this report is provided "as is" without any representation or warranty of any kind, and Fitch does not represent or warrant that the report or any of its contents will meet any of the requirements of a recipient of the report. A Fitch rating is an o pinion as to the creditworthiness of a security. This opinion and reports made by Fitch are based on established criteria and methodologies that Fitch is continuously evaluating and updating. Therefore, ratings and reports are the collective work product of Fitch and no individu al, or group of individuals, is solely responsible for a rating or a report. The rating does not address the risk of loss due to risks other than credit risk, unless such risk is specifically mentioned. Fitch is not engaged in the offer or sale of any security. All Fitch repo rts have shared authorship. Individuals identified in a Fitch report were involved in, but are not solely responsible for, the opinions stated therein. The individua ls are named for contact purposes only. A report providing a Fitch rating is neither a pros pectus nor a substitute for the information assembled, verified and presented to investors by the issuer and its agents in connection with the sale of the securities. Ratings may be changed or withdrawn at any time for any reason in the sole discretion of Fitch. Fitch does not provide investment advice of any sort. Ratings are not a recommendation to buy, sell, or hold any security. Ratings do not comment on the adequacy of market price, the suitability of any security for a particular i nvestor, or the tax- exempt nature or taxability of payments made in respect to any security. Fitch receives fees from issuers, insurers, guaranto rs, other obligors, and underwriters for rating securities. Such fees generally vary from US$1,000 to US$750,000 (or the applicable currency equivalent) per issue. In certain cases, Fitch will rate all or a number of issues issued by a particular issuer, or insured or guaranteed by a part icular insurer or guarantor, for a single annual fee. Such fees are expected to vary from US$10,000 to US$1,500,000 (or the applicable currency equivalent). The assignment, publication, or dissemination of a rating by Fitch shall not constitute a consent by Fitch to use its name as an expert in connection with any registration statement filed under the United States securities laws, the Financial Services and Markets Act of 2000 of the United Kingdom, or the securities laws of any particular jurisdiction. Due to the relative efficiency of electronic publishing and d istribution, Fitch research may be available to electronic subscribers up to three days earlier than to print subscribers. For Australia, New Zealand, Taiwan and South Korea only: Fitch Australia Pty Ltd holds an Australian financial services licen se (AFS license no. 337123) which authorizes it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001. Fitch Ratings, Inc. is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (the "NRSRO"). While certain of the NRSRO's credit rating subsidiaries are listed on Item 3 of Form NRSRO and as such are authorized to issue credit ratings on behalf of the NRSRO (see https://www.fitchratings.com/site/regulatory), other credit rating subsidiaries are not listed on Form NRSRO (the "non-NRSROs") and therefore credit ratings issued by those subsidiaries are not issued on behalf of the NRSRO. However, non- NRSRO personnel may participate in determining credit ratings issued by or on behalf of the NRSRO. Copyright © 2022 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. 21 Summary: Denton, Texas; General Obligation Primary Credit Analyst: Rob M Marker, Centennial + 1 (303) 721 4264; Rob.Marker@spglobal.com Secondary Contact: Joyce Jung, Centennial + 1 (212) 4380629; joyce.jung@spglobal.com Table Of Contents Rating Action Stable Outlook Credit Opinion Related Research WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JUNE 3, 2021 122 Summary: Denton, Texas; General Obligation Credit Profile US$150.92 mil certs of oblig ser 2021 dtd 06/15/2021 due 02/15/2051 Long Term Rating AA+/Stable New US$55.515 mil GO bnds ser 2021 dtd 06/15/2021 due 02/15/2041 Long Term Rating AA+/Stable New Denton GO Long Term Rating AA+/Stable Affirmed Rating Action S&P Global Ratings assigned its 'AA+' rating to Denton, Texas' proposed series 2021 certificates of obligation, and series 2021 general obligation (GO) bonds. At the same time, we affirmed our 'AA+' rating on the city's existing parity GO debt. The outlook is stable. The bonds and certificates constitute direct obligations of the city, payable from an annual, continuing ad valorem tax levied within the limit prescribed by law, on all taxable property within the city. The certificates are further secured by a limited pledge on the net revenues of the city's utility system, in an amount not to exceed $1,000. Given the limited nature of the additional pledged revenues, we base our ratings on these obligations on the city's ad valorem tax pledge. The maximum allowable ad valorem tax rate in Texas is $2.50 per $100 of assessed value (AV) for all purposes, with the portion dedicated to debt service limited to $1.50. The city's total tax rate is well below the maximum, at 59.05 cents, 21 cents of which is dedicated to debt service. We view the limited-tax GO debt pledge on par with the city's general creditworthiness. The city does not levy ad valorem taxes on a narrower or distinctly different tax base, and there are no limitations on the fungibility of resources available for the payment of debt service. Proceeds from the series 2021 bonds will fund various street and public safety improvement projects, while proceeds from the series 2021 certificates will primarily fund utility improvements, electrical and power system upgrades and police and firefighter vehicles. Credit overview We expect ongoing economic development in Denton will likely continue to support future property and sales tax growth, the city's two leading revenue sources. We also believe the city will continue to benefit from its access to the broad and diverse Dallas-Fort Worth-Arlington metropolitan statistical area (MSA), which we view as a positive credit factor. In our opinion, Denton's very strong management, which has resulted in consistently strong budgetary performance, further supports the city's credit quality. Provided rapid economic growth, Denton has taken on a considerable amount of debt which we believe will continue to constrain the credit rating with significant future debt plans. Therefore, we do not expect to change our rating during the next few years. The rating reflects our opinion of the city's: WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JUNE 3, 2021 223 • Very strong economy, with access to a broad and diverse MSA and a local stabilizing institutional influence; • Very strong management, with strong financial policies and practices under our Financial Management Assessment (FMA) methodology; • Strong budgetary performance, with most surplus operating results in the general fund and a slight operating surplus at the total governmental fund level in fiscal 2020; • Very strong budgetary flexibility, with an available fund balance in fiscal 2020 at 28% of operating expenditures; • Very strong liquidity, with total government available cash at 136% of total governmental fund expenditures and 10x governmental debt service, and access to external liquidity we consider strong; • Very weak debt and contingent liability profile, with debt service carrying charges at 13.1% of expenditures and net direct debt that is 268% of total governmental fund revenue; and • Strong institutional framework score. Environmental, social, and governance factors We have analyzed the city's environmental factors, including health and safety risks posed by COVID-19, coupled with social and governance risks relative to the economy, as well as its financial management, budgetary performance, budgetary flexibility, and liability profile, and determined all are in line with our view of the sector standard. Tornadoes and flooding pose the greatest ongoing environmental threats to the city. Officials would rely on cash-based reserves to minimize one-time service disruptions, if necessary, until receiving federal funds for eligible damages. Freezing temperatures from winter storm Uri led an increase in energy demand and a shortage of supply causing more than 4 million Texas residents to experience extended power outages. The storm resulted in unprecedented energy costs for Denton's combined utility system. The utility system's net purchased power expense during the two-week period of the storm exceeded its annual expense in 2019 and 2020. S&P Global Ratings subsequently lowered its long- and short-term ratings on the combined utility system and placed both on CreditWatch with negative implications in March 2021. We do not currently expect a negative action on city's rating because of the storm. The city's governmental funds do not receive significant support from its utilities and the utility has issued debt to spread the cost of the increased expense. Stable Outlook Downside scenario We could lower the rating in the unlikely event that growth-related or fixed-cost pressure were to weaken budgetary performance, leading to sustained and significant reserve drawdowns. Upside scenario We could raise the rating if continued economic expansion were to result in improvement of wealth and income to levels we consider comparable with those of higher-rated peers, debt was reduced, and management were to maintain strong finances. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JUNE 3, 2021 3 Summary: Denton, Texas; General Obligation 24 Credit Opinion Very strong economy We consider Denton's economy very strong. Located in Denton County in the broad and diverse Dallas-Fort Worth-Arlington MSA, Denton serves a population of 140,956. The city also benefits, in our view, from a stabilizing institutional influence. Projected per capita effective buying income as a percentage of U.S. levels is 88.2% and 2021 per capita market value is $94,841. Market value improved 6% in 2021 to $13.4 billion. With the onset of COVID-19, County unemployment jumped from 2.9% in Feb 2020 to 12.4% in April 2020; however, with a reduction in cases and a higher percentage of the population vaccinated, it improved to 5.6% as of April 2021. Retail, manufacturing, distribution, education, and health care all contribute to local economic health. We believe the economy benefits from the stabilizing presence of both the University of North Texas and Texas Woman's University. Primary employers include: • University of North Texas (4,614 employees), • Denton Independent School District (4,417), • Peterbilt Motors (3,075), and • Texas Woman's University (1,875). The local property tax base is diverse, with the 10 leading taxpayers accounting for just over 5% of taxable AV in 2021. We understand COVID-19 did not materially affect Denton's primary taxpayers, many of which received classification as essential and continued to operate throughout the pandemic. Leading taxpayers include Walmart, Amazon.com service inc. (marketplace), and Paccar Inc. Market value has shown significant improvement, with an average annual growth rate of 9.7% over the last five years. Residential property makes up the most significant portion of the tax base (50% single-family and 14% multifamily, based on 2021 AV). With several industrial and residential developments in progress, we expect continued strong tax base growth over our outlook horizon, most notably, the recent approval of the Cole and Hunter Ranch developments, which include a combined 6,400 acres for development. The master-planned communities will include 12,900 single-family units, 6,450 multifamily units, 485 acres for commercial development, and 256 acres for industrial development. With a planned 40-year buildout, we expect these projects will contribute to ongoing tax base growth. Very strong management We view the city's management as very strong, with strong financial policies and practices under our FMA methodology, indicating financial practices are strong, well embedded, and likely sustainable. Key policies and practices include management's: • Conservative revenue and expenditure assumptions when compiling the annual budget, which typically allows for favorable budget variance by fiscal year-end; • Budget amendments that, if needed, the city council can make--management informs the council quarterly on how the budget is developing through budget-to-actual reports; WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JUNE 3, 2021 4 Summary: Denton, Texas; General Obligation 25 • Formal debt and investment management policies, reviewed annually, with quarterly investment reports to the council; • Annually updated, long-range capital improvement plan and multiyear financial forecast; and • Formal policy of maintaining a minimum unassigned general fund balance at 20% of budgeted expenditures and an additional 5% resiliency reserve, for 25% combined, to safeguard against unusual financial circumstances or economic downturns. Strong budgetary performance We view Denton's budgetary performance as strong, with an operating surplus equal to 2.5% of general fund expenditures and 1.9% of total governmental fund expenditures in 2020. We have adjusted our ratios to account for what we view as recurring transfers out of and into the general fund and total governmental funds and capital expenditures funded with bond proceeds. Denton consistently reports operating surpluses, with positive general fund margins in each of the last three years and only one deficit since 2015. Revenue is primarily made up of property taxes (35% of 2020 total governmental activities), sales tax (18%), and franchise fees (14%). All primary revenue sources increased in 2020 despite the pandemic. Also, government officials swiftly implemented cost-cutting measures early during the pandemic to mitigate potential revenue losses. For example, management implemented a hiring freeze, delayed merit increases, cut discretionary spending, renegotiated contracts, and offered a voluntary separation program leading to a reduction in more than 80 full-time employees. These actions, coupled with approximately $7.6 million in CARES Act funding, helped generate the positive 2020 results. Management's budgets are built conservatively, including assumptions such as modest 3%-5% property tax-base growth rate, well below historical averages. Officials exceeded budgeted expectations in each of the last two years and fell slightly short of budget in 2018. We believe budgets are built with realistic assumptions and that management has demonstrated an ability to provide short-term forecasts that are consistent with actual results. For fiscal 2021, officials are currently projecting an operating surplus greater than the $1.4 million reflected in the initial budget, aided by continued strong sales tax collections and property tax base growth, as well as a diverse economic base with many businesses that performed exceptionally well throughout 2020. We expect financial performance will remain strong over our outlook horizon provided robust economic activity and financial projections. Moreover, Denton expects to receive approximately $23 million of additional Coronavirus relief aid from the American Rescue Act, and these funds are excluded from the 2021 budget. Very strong budgetary flexibility Denton's budgetary flexibility is very strong, in our view, with an available fund balance in fiscal 2020 at 28% of operating expenditures, or $33.8 million. The city has historically maintained very strong reserves, consistently exceeding its formal policy of maintaining 20% of budgeted expenditures. With fiscal year-end 2022 expectations for a modest surplus, coupled with additional Coronavirus relief, we expect budgetary flexibility will likely remain very strong during the next few fiscal years. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JUNE 3, 2021 5 Summary: Denton, Texas; General Obligation 26 Very strong liquidity In our opinion, Denton's liquidity is very strong, with total government available cash at 136% of total governmental fund expenditures and 10x governmental debt service in 2020. In our view, the city has strong access to external liquidity, if necessary. Denton's access to the market during the past two decades, including numerous GO and revenue-backed bond issuances, demonstrates its strong access to external liquidity. It has historically maintained what we consider very strong cash, and we do not believe cash will likely materially weaken during the next few fiscal years. All city investments comply with Texas statutes and its own formal policy. Investments were in treasuries, agencies, certificates of deposit, commercial paper, municipal bonds, and local government investment pools at March 31, 2021; we consider none of these aggressive. We have not identified any contingent liabilities that could pose a material liquidity risk. Therefore, we do not expect liquidity will likely deteriorate from its very strong position during the next few fiscal years. Very weak debt and liability profile In our view, Denton's debt and contingent liability profile is very weak. Total governmental fund debt service is 13.1% of total governmental fund expenditures and net direct debt is 268% of total governmental fund revenue. Total direct debt is approximately $1.1 billion, and overall net debt equals $547.6 million, or 11.2% of market value. We view net direct debt greater than 10% of market value as a negative credit factor. Provided Denton's rapid pace of growth continues, we expect the city and school districts serving the city will have ongoing growth-related capital needs. Denton expects to issue between $25 million and $50 million annually through fiscal 2025 to fulfill the voter-approved 2019 bond program. With the additional debt plans, we expect Denton's debt profile to remain very weak, although view its debt service payments as manageable. Pension and postemployment benefits (OPEB) We do not view pension and OPEB liabilities as an immediate credit pressure because we believe required contributions are currently manageable compared with total governmental expenditures. If required contributions were to increase unexpectedly during the next few fiscal years, we think this would not materially affect Denton's fiscal stability because of the sizable reserves officials could use for contingencies, if needed. Although OPEB liabilities are largely funded on a pay-as-you-go basis, which, given claims volatility as well as medical cost and demographic trends, is likely to lead to escalating costs, contribution requirements may be amended by the city. Denton participates in the following plans: • The state-administered Texas Municipal Retirement System (TMRS): 86.9% funded, with a net pension liability (NPL) equal to $69.6 million. • The Denton Firefighters' Relief & Retirement Fund: 85.5% funded, with a NPL equal to $17.6 million. • OPEB: defined-benefit, group-term life insurance through the TMRS-administered supplemental death benefits fund, WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JUNE 3, 2021 6 Summary: Denton, Texas; General Obligation 27 and retiree health care. Denton's combined required pension and OPEB contributions totaled 10.7% of total governmental fund expenditures in fiscal 2020. Of that amount, only 0.1% represented OPEB payments. Denton's required pension contribution is its actuarially determined contribution, calculated at the state level based on an actuary study, and the city has historically funded annual required costs in full. Actuarial assumptions include a 6.75% discount rate, which we view as somewhat aggressive, representing market risk and resulting in contribution volatility if TMRS fails to meet assumed investment targets. Additionally, contributions are likely to grow as a result of the use of level-payroll funding, rather than level-dollar contributions, which would result in consistent payments. Strong institutional framework The institutional framework score for Texas municipalities is strong. Related Research • Through The ESG Lens 2.0: A Deeper Dive Into U.S. Public Finance Credit Factors, April 28, 2020 Ratings Detail (As Of June 3, 2021) Denton GO Long Term Rating AA+/Stable Affirmed Denton GO Long Term Rating AA+/Stable Affirmed Denton GO Long Term Rating AA+/Stable Affirmed Denton GO Long Term Rating AA+/Stable Affirmed Denton GO Long Term Rating AA+/Stable Affirmed Denton GO Long Term Rating AA+/Stable Affirmed Denton GO Long Term Rating AA+/Stable Affirmed Denton GO rfdg bnds ser 2020A dtd 11/15/2020 due 02/15/2031 Long Term Rating AA+/Stable Affirmed Denton GO (AMBAC) Unenhanced Rating NR(SPUR) Denton GO (MBIA) (National) Unenhanced Rating NR(SPUR) Many issues are enhanced by bond insurance. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JUNE 3, 2021 7 Summary: Denton, Texas; General Obligation 28 Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for further information. Complete ratings information is available to subscribers of RatingsDirect at www.capitaliq.com. All ratings affected by this rating action can be found on S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JUNE 3, 2021 8 Summary: Denton, Texas; General Obligation 29 WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JUNE 3, 2021 9 STANDARD & POOR’S, S&P and RATINGSDIRECT are registered trademarks of Standard & Poor’s Financial Services LLC. S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees. S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgment at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof. Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating- related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses. No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages. Copyright © 2021 by Standard & Poor’s Financial Services LLC. All rights reserved. 30 Date: June 3, 2022 Report No. 2022-034 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Hotel Occupancy Tax (HOT) Fund and Sponsorship Fund Programs EXECUTIVE SUMMARY: The HOT Fund program uses hotel receipts to actively promote Denton as a tourist destination. The City provides funds through the Sponsorship Program to support non-profit and civic- minded programs and organizations which further a charitable cause, economic or community growth or serve a public interest. The City of Denton releases applications for funding requests every year for the HOT Fund and Sponsorship Programs. Applications are reviewed by the Community Partnership Committee and funding recommendations are made to City Council. The recommendations are considered during the City’s budgeting process. The HOT Fund application was released on June 1, 2022, and Sponsorship applications are scheduled for release in late June / early July. DISCUSSION: The HOT Fund program uses hotel receipts to actively promote Denton as a tourist destination. The City provides funds through the Sponsorship Program to support non-profit and civic- minded programs and organizations which further a charitable cause, economic or community growth or serve a public interest. The City of Denton releases applications for funding requests every year for the HOT Fund and Sponsorship Programs. Applications are reviewed by the Community Partnership Committee (CPC) and funding recommendations are made to City Council. The recommendations are considered during the City’s budgeting process. The Grant Office assumed administration of both programs in the Fall of 2021. The applications for HOT Funds and Sponsorship have been updated to reflect current year dates and for grammatical editing. The applications have also been reformatted for consistency between the two programs and converted to a fillable PDF for ease in completing. Budget templates have been created for submission with the applications. The updates and changes in format were done with the intent of standardizing the applications, streamlining the process, and implementing a user-friendly document. Traditionally, the application periods for HOT Funds and Sponsorship Funds were held at the same time in May of each year and ran for three (3) weeks. This year, updates to the application and the potential to consolidate City programs have delayed the release of the applications. The HOT Fund application was released on June 1, 2022 and will close on June 24, 2022. The Sponsorship Fund program is scheduled for release in late June / early July. The delay is due to a plan to merge the Sponsorship Fund Program with the Parks and Recreation Department’s Co-Sponsorship Program. The Co-Sponsorship Program provides in-kind support at an approved value to local non-profits for special events. The CPC received information on the merging of the programs at a meeting held on February 13, 2020. The COVID-19 Pandemic forced the cancellation of most events funded under both programs and paused the consolidation. On April 31 Date: June 3, 2022 Report No. 2022-034 22, 2021, the Committee was updated with a new implementation timeline for Fiscal Year 2022- 23. The Grant Office will be presenting an update to the CPC on the consolidation of the Sponsorship Fund and the Co-Sponsorship Program. CONCLUSION: The HOT Fund application period was opened on June 1, 2022 and will close on June 24, 2022. The application period for the Sponsorship Program is scheduled for late June / early July after an updated presentation on the merging of the Sponsorship Program and the Parks and Recreation Department’s Co-Sponsorship Program to the CPC. ATTACHMENT(S): Exhibit 1 HOT Fund Guidelines STAFF CONTACT: Laura Behrens Assistant Director of Procurement, Warehouse, Grants Laura.Behrens@cityofdenton.com Daniel Jones Grant Analyst Daniel.Jones@cityofdenton.com 32 Page 1 of 7 CITY OF DENTON Hotel Occupancy Tax (HOT) Program Guidelines Program Year 2023 I. PURPOSE To actively promote Denton as a tourist destination. Tourist is an individual who travels from the individual’s residence to a different municipality, county, state or country for pleasure, education, or culture. Texas Tax Code 351.101 (5) II. ELIGIBILITY A. Must be based in the City of Denton and present, perform, exhibit, conduct workshops, or provide services and other activities that promote tourism and the hotel and convention industry. B. Must be a governmental entity or a non-profit Texas corporation, federally tax-exempt under the Internal Revenue Code. C. Must demonstrate corporate good standing with the state of Texas at time of application and throughout the program or contract period. D. Must have a history of continuous, stable programming prior to the application date. E. Must have an active governing body. F. Must have programming, administrative practices, and board membership that does not discriminate on the basis of race, color, religion, age, pregnancy, national origin, sexual orientation or gender identity, citizenship, familial status, disability, or veteran status. G. If previously funded, applicant must have successfully fulfilled all prior contract or program requirements. III. USE OF HOTEL FUNDS There is a two-part test that every expenditure of local hotel occupancy tax must pass to be valid. First, the revenue derived from the tax authorized by Tax Code 351.101(a) shall be expended in a manner directly enhancing and promoting tourism and the convention and hotel industry as permitted by Subsection (a). That revenue may not be used for the general revenue purposes or general governmental operations of a municipality. 33 Page 2 of 7 The second part of the test is that all expenditures must clearly fit into one of the nine statutorily provided categories that apply to the City of Denton for expenditures of local hotel occupancy tax revenues. These nine categories are as follows: A. Convention & Visitor Information Centers - Funding the acquisition of sites for and the construction, improvement, enlarging, equipping, repairing, operation, and maintenance of convention center facilities or visitor information centers, or both. B. Convention Registration - Funding the furnishings of facilities, personnel, and materials for the registration of convention delegates or registrants. C. Advertising - Funding for advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity. D. Arts - Funding for the encouragement, promotion, improvement, and application of the arts, including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these major art forms. E. Historical - Funding for historical restoration and preservation projects or activities or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums 1) at or in the immediate vicinity of convention center facilities or visitor information centers, or 2) located elsewhere in the municipality or its vicinity that would be frequented by tourists and convention delegates. F. Sporting Events - Expenses, including promotion expenses, directly related to a sporting event in which the majority of participants are tourists who substantially increase economic activity at hotels and motels within the municipality or its vicinity. G. Sports Facility/Fields - Funding the enhancement or upgrading of existing sports facilities or sports fields (baseball, softball, soccer, flag football, etc.). The municipality must own the sporting facility and the field/facility must have been used a combined total of more than 10 times for district, state, regional, or national sports tournament in the preceding calendar year. Municipality shall determine HOT revenue by hotel activity attributed to the sports events held at field for five years after the date of the enhancements. Municipality may not use HOT revenue for the enhancement of the facility/field in a total that exceeds the amount of the HOT revenue attributable to the enhancement. The municipality shall also reimburse from its general fund any of the expenditures in excess of the amount of HOT revenue attributable to the enhancements of the facility/field. Athletics staff will compile attendance, revenue, and team data, as well as calculate estimated economic impact for each major tournament held throughout the year. Additionally, staff will collect and compile the estimated hotel revenue and hotel tax attributable to any events held at complexes which have been improved with HOT funds money within the last five years. H. Signage – Funding of signage directing the public to sights and attractions that are frequently visited by hotel guests. Must comply with all signage regulations. I. Transportation - Transporting of tourist from hotels to nearby tourism venues using transportation systems which may be owned and operated by the municipality or privately owned and operated but partially financed by the municipality and does not serve the public. 34 Page 3 of 7 IV. ADDITIONAL USES OF HOTEL FUNDS Expenditures listed below are allowable for organizations, to the extent that such expenditures are used exclusively to attract tourists and convention delegates or registrants to the municipality or its vicinity as governed by the Tax Code 351.101 (a). These special allowance expenditures may not be used for the benefit of local businesses or individuals, and the benefit to tourism may not be indirect or incidental but must be direct or purposeful. A. Administrative Expenses - Hotel occupancy tax revenue spent for the purpose authorized by Tax Code 351.l01 may be spent for day-to-day operations, supplies, salaries, office rental, travel expenses, and other administrative costs only if those administrative costs are incurred directly in the promotion and servicing expenditures authorized under section 351.101 (a). If a municipality or other public or private entity that conducts an activity authorized under section 351.l01 (a) conducts other activities that are not authorized under section 351.101 (a), the portion of the total administrative costs of the entity for which local occupancy tax revenue may be used may not exceed the portion of those administrative costs incurred in conducting the authorized activities. For Example: Organization A has a total operating budget of $500,000 which consists of $250,000 for administrative expenses, $100,000 for advertising, and $150,000 for stages, lighting, and artists. Under this example, 50% ($250,000/$500,000) is their eligible proportion for administrative expenses, only if at least 50% is devoted to the event and promotes tourism and the hotel and convention industry. Therefore, assuming the committee approves a $100,000 budget from Hotel Occupancy Tax Funds, $50,000 ($100,000 X 50%) of this budget may be spent for administrative expenses. The following expenses may be incurred, but may not exceed the eligible proportion, as authorized under section 351.101 (e): salaries, supplies, equipment, fixed assets, utilities, event insurance, communications, technology, office space, janitorial maintenance & supplies, non- local printed matter such as newsletters, applications, and entry forms, etc. Requests for administrative expenses, including the purchase of fixed assets and equipment, must be provided in detail to the committee for consideration during the application process. B. Promotion Expenses - Expenditures for food and beverages for meetings and special events and promotional items may be funded if the focus of that event or meeting directly promotes and services expenditures authorized under section 351.101 (a). If a municipality or other public or private entity that conducts an activity authorized under section 351.l01 (a) conducts other activities that are not authorized under section 351.101 (a), the portion of the total costs of the entity for which local occupancy tax revenue may be used may not exceed the portion of those costs actually incurred in conducting the authorized activities. Each entity that is ultimately funded by the tax shall, before making such expenditure, specify in a list each scheduled activity, program, or event that 1) is directly funded by the tax or has its administrative costs funded in whole or in part by the tax; and 2) is directly enhancing and promoting tourism and the convention and hotel industry. The listing of meetings and special events (and purpose) where expenses for food, beverages, or promotional items will be incurred must be provided in detail to the committee for consideration during the application process. 35 Page 4 of 7 V. LIMITATIONS OF HOTEL FUNDS A. Section 351.103 (c) of the Tax Code imposes two category restrictions to the city of Denton. 1. The Art category expenses in a fiscal year cannot exceed 15% of the HOT revenue. 2. The Historical category expenses in a fiscal year cannot exceed 15% of the HOT revenue. B. City of Denton Resolution 2013-021 requires at least 2.4% of the 15% in Art expenses be allocated to the Public Art Committee. C. Recipients are responsible for assuring compliance with all statutory, and other legal requirements applicable to receipt, use, expenditure and accounting of hotel tax revenues. No provision, restrictions, or lack thereof, in these guidelines shall excuse the failure of a recipient to comply with all such requirements. Hotel funds may not be used for the following: 1. Funding to individuals; 2. Reduction of deficits from, or expenditures related to, activities of previous or future fiscal, calendar, or program years; 3. Capital improvements, except for those funded by the City through bonds or are historical restoration or preservation projects; 4. Contracted auditing, accounting, or bookkeeping fees; 5. Landscaping; 6. Travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of tourism and the convention and hotel industry or the performance of the person’s job in an efficient and professional manner; or 7. Advertising materials that will be distributed inside the city limits of Denton. VI. RECIPIENT REQUIREMENTS A. In all publications (e.g., flyers, programs, brochures, press releases, advertisements, annual reports, and all other mailing pieces), recipient shall acknowledge in some meaningful way that their organization is funded in part by the City of Denton. Such acknowledgement might take the form of inclusion on a donors list for particular events. Recipients are advised that usage of the official City logo is restricted by policy (505.02) and ordinance. Any use of the City logo must be coordinated with and approved by the appropriate City representatives, to ensure compliance with these standards. Written authorization must be obtained from the City Manager or their designee. B. An organization with whom a municipality contracts to conduct an activity authorized by section 351.101 (a) shall maintain complete and accurate financial records of each expenditure of hotel occupancy tax revenue made by the organization and, on request of the governing body of the municipality or other person, shall make the records available for inspection and review to the governing body or other person. 36 Page 5 of 7 All financial records and any other records relating to the contracts shall be subject to the requirements of the Public Information Act. Organizations must maintain and account for revenue provided from the tax authorized by section 351.101 (a) within one of the two forms of accounting listed below: 1. Maintain hotel occupancy tax funds in a separate checking account established for that sole purpose and may not commingle with any other money or in any other bank account or 2. Maintain segregated fund accounting, whereby the accounting of HOT revenues and expenditures may not be commingled with any other revenues and expenditures. The funds may be maintained in the same bank account. However, if the HOT funds are invested in an interest-bearing account, then a separate account must be established for that sole purpose and may not commingle with any other money. All interest earned on the invested account will be considered restricted Hotel Occupancy Tax funds. C. Payments to approved, contracted recipients will be made quarterly. The quarterly payments will be equal to 25% of the fixed contract amount unless the annual base revenue is less than originally estimated for the fiscal year. In this case, any quarterly payment will be adjusted accordingly. Payments will be disbursed to recipients by the 25th of the next month following the quarter end. Payment will not be released until the recipients’ quarterly reports are completed and approved by the Finance Department. On a case-by-case basis, a recipient can receive funding in a manner that is different from the standard practice of four quarterly payments. Internal recipients’ approved budgets will be available on the first day of the city’s fiscal year pending completion of the prior quarter and/or end of year obligations. If during the program year, the city finds that revenue receipts will not meet the estimated budget, internal recipients will be required to reduce their expenditures as necessary during the fiscal year. D. Electronic submission of quarterly reports is required thirty days after each quarter. The quarterly reports should include the following: 1. Complete financial report (including signature) provided by the City’s Finance Department. 2. Copies of all HOT paid invoices OR a listing of all invoices including check number/payment type, vendor name, budget category, expenditure descriptions and amount paid. If a list of invoices is provided, an audit may be performed at any time by the Finance Department to determine program eligibility. 3. Copies of all HOT invoices related to social media marketing such as but not limited to Facebook, Twitter, and Instagram. Invoices shall include metrics and/or performance results of paid activity. If a listing of invoices is provided (see #2 above) copies of these invoices must be provided each quarter. 4. Front and back copies of all cleared HOT checks written for the above invoices OR full monthly bank statements illustrating the cleared checks, card/debit, ACH payments. E. Provide the Finance Department notice of local Board of Directors meeting schedule. F. Return any unused or ineligible monies to the City of Denton at the end of each contract period. G. Each required organization must have insurance coverage prior to the event. A copy must be filed with the Finance Department at least one week prior to the event. 37 Page 6 of 7 H. New applicants must attend a training session in the Finance Department prior to the beginning of the program year. I. Recipients must explore local business for products and services when expending HOT funds. VII. CONTRACT TERM The program period will commence on January 1 of the program year and terminate at midnight on December 31 of the same year. However, the contract period will commence on January 1 of the program year and terminate at midnight on January 31 of the following year. A thirty-day grace period is provided which allows recipients to finalize their reporting of expenditures. Either party may terminate the contract by sixty days written notice. Internal recipients will operate within the City’s fiscal year that will commence on October 1 and terminate on September 30 of the program year. All Hotel Occupancy Tax funds must be expended in accordance with the City’s annual end of year procedures memorandum. The procedural deadlines could have dates prior to the end of the HOT program year. HOT funds expended after the end of year deadlines will be deducted from the internal recipient’s next program year’s approved HOT budget. If the internal recipient does not have budgeted HOT funds for the next program year, one of its department funds will be allocated the expenses. VIII. COMMITTEE AND APPLICATION OVERVIEW The Community Partnership Committee is a sub-committee of the City Council. The Council will determine membership of the sub-committee. The following City staff serves as liaisons: Director of Finance, Assistant Director of Procurement, an Assistant City Attorney, and Grant Analyst. The application process is summarized below. A. Applications are distributed to all current and past recipients and to other organizations requesting Hotel Occupancy Tax funding. B. All applications must include: a proposed budget which details the plan for expending all monies requested, financial statements from at least two previous years, letter of determination certifying tax-exempt status under the Internal Revenue Code, current W-9, poof of current status as a non- profit Texas corporation, a list of local Board of Directors, Officers, or Governing Body and schedule of meetings, constitutions and/or by-laws, a list of all prior year donations made by the organization, marketing examples, itemized income and expense reports for the requested event and a notice of events/schedules for which the hotel funds will be spent. C. An annual application deadline will be established based on the Community Partnership Committee’s annual meeting schedule. This is a fixed deadline, without acceptance of applications after the set date. D. All applications will be reviewed by staff for completeness and adherence to hotel occupancy tax state laws and program eligibility. E. Applications are presented to the Community Partnership Committee for review. F. An additional Community Partnership Committee meeting can be scheduled for recipient presentations, if needed. G. The Community Partnership Committee approves or declines all or part of the requests for funding. 38 Page 7 of 7 H. Staff prepares notification letters and contracts for the awarded recipient’s signature. I. HOT contracts will be approved annually by the City Council at a regularly scheduled meeting during the first quarter of the City’s fiscal year. 39 Date: June 3, 2022 Report No. 2022-035 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: American Rescue Plan Act (ARP) State and Local Fiscal Recovery Funds (SLFRF) EXECUTIVE SUMMARY: The City of Denton was allocated $23.29 million in federal aid across two years. The first payment of $11.65 million was received June 2021. The City is expected the second and final payment of $11.65 in June 2022. City staff will be proposing projects for funding with input from the community and City Council. DISCUSSION: On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law and established the Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Fund also known as the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program. The purpose of SLFRF is to provide support to State, territorial, local, and Tribal governments in responding to the economic and public health impacts of COVID-19 and in their efforts to contain impacts on their communities, residents, and businesses. The City of Denton was allocated $23.29 million in federal aid across two years. The funding is delivered in two tranches, or payments, no later than 12 months apart. Half of this funding ($11.65 million) was received by the City in June 2021, and the remaining half will be available in June 2022. All cost must be incurred or obligated by December 31, 2024. The period of performance will run until December 31, 2026, at which time all projects must be completed. Programs funded under the first round of funding were developed based on staff recommendations, City Council prioritization of funding categories, and citizen input. As part of the Fiscal Year 2021-2022 budget adoption, City Council approved the projects outlined in Exhibit 1. In preparation of the second payment, staff has identified on-going needs under the eligible categories of Negative Economic Impacts and Revenue Replacement outlined by the Treasury Department. Potential projects and include continued non-profit support, housing vouchers, and support of general service provisions. City Council feedback will be sought on further prioritization and recommendation of projects allowed under the SLFRF guidelines. Additionally, staff will be developing a citizen survey to gather input. The Infrastructure Investment and Jobs Act (IIJA), aka Bipartisan Infrastructure Law (BIL), was signed into law by President Biden on November 15, 2021. The law authorizes $1.2 trillion for transportation and infrastructure spending with $550 billion of that figure going toward “new” investments and programs. Designated federal agencies are currently developing programs under the funding. 40 Date: June 3, 2022 Report No. 2022-035 A significant portion of the funding has been allocated to the states through formula grants. There will be competitive grant opportunities for local governments. The City is working closely with Capital Edge, the City’s consultant, to identify eligible projects under the stated requirements and monitor the implementation and release of programs from federal agencies. CONCLUSION: A citizen survey will be launched in June 2022 to gather feedback regarding the potential projects for the second year of SLFRF funding of $11.65 million. Survey results will be shared with Council during budget discussions scheduled in July and August 2022. Staff will continue to monitor funding opportunities under IIJA and determine eligibility and feasibility of projects. ATTACHMENT(S): Exhibit 1 SLFRF Approved Projects STAFF CONTACT: Laura Behrens Assistant Director of Procurement / Warehouse / Grants Laura.Behrens@cityofdenton.com 41 Exhibit 3 SLFRF FUNDED PROJECTS Day Center and Overnight Shelter / Community Services / $5,000,000 Construction of day center and overnight shelter to provide services to people experiencing or at- risk of homelessness. Vaccine Clinic Support / Fire Department / $550,000 Support and enhance local efforts for COVID testing and vaccinations. Temporary Alternative Shelter / Community Services / $550,000 Support the current Hotel Voucher Program providing temporary housing for individuals experiencing homelessness. Behavioral Healthcare Services Grant / Community Services / $895,000 Grant program aimed at increasing access to services for City of Denton residents in at least one of three priority areas: youth mental health services, adult mental health services and substance use treatment services. Focus will include an increase of access to services for underinsured and/or uninsured individuals and families. Funding priority will be given to providers who demonstrate an ability to provide dual diagnosis treatment for people with mental health and substance use treatment needs. Non-Profit Capacity Support Grant / Community Services / $550,000 Grant program aimed at providing support to non-profits whose services and programming were directly impacted by COVID. Focus is on long-term sustainment of operations. Emergency Management Program Manager / Fire / $95,000 Fill vacant position within the Fire Department’s Emergency Management Division. The position will include expanded duties related to public health initiatives. Public Communication Software / Fire / $75,000 Replacement of the CodeRED public notification system. Street Outreach Expansion (Clinician and Paramedic Positions) / Police and Fire / $250,000 Expand the Street Outreach Team to include a Caseworker and a Paramedic. The Team provides direct assistance to individuals experiencing homelessness. The additional positions will enhance current services provided. Street Outreach Expansion (Vehicle) / Police / $50,000 A dedicated vehicle for the day-to-day operations of the Street Outreach Team. Lease and Rent Relief for Small Businesses Grant / Economic Development / $2,330,000 Grant program aimed at providing relief to small businesses who demonstrate an economic loss associated with COVID. Focus is on long-term sustainment of operations. 42 Exhibit 3 SLFRF FUNDED PROJECTS Arts/Music/Cultural Business Grant / Economic Development / $550,000 Grant program aimed at providing relief to individuals and organizations with programming that promotes or develops art, promotes music or musical performances, or preserves or commemorates historical events and local cultures. Recipients must demonstrate an economic loss associated with COVID. Focus is on long-term sustainment of operations. City Facilities – COVID Updates / Facility Management / $750,000 Modifications and improvements to city facilities that promote public health by mitigating the spread of COVID. 43 Date: June 3, 2022 Report No. 2022-036 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Upcoming expiration of term of the City of Denton’s appointee to the Texas Municipal Power Agency (“TMPA”) Board of Directors. EXECUTIVE SUMMARY: TMPA has notified the City that the term of one of its appointees to their Board of Directors will be expiring on July 18, 2022. TMPA is requesting that the City take formal action to reappoint the current appointee or select a new appointee. BACKGROUND: The City of Denton, as a member of the TMPA, holds two seats on the TMPA Board of Directors. The term of the expiring seat will end on July 18, 2022 and is currently held by Mr. Billy Cheek. Mr. Cheek currently serves on the City’s Public Utilities Board and is the Vice Chair. The other seat on TMPA is held by Council Member Jesse Davis (term expires July 18, 2023). Staff reached out to Mr. Cheek regarding his expiring term and he expressed interest in continuing to serve on the TMPA Board of Directors. Mr. Cheek has represented the TMPA Board since 2010, has served as President of the Board in past years, and has also served on various TMPA committees. Membership on the TMPA Board of Directors must be approved by the City Council and may, but need not necessarily be, members of the City Council and/or the Public Utilities Board. Members may only be removed for cause in accordance with the Denton City Charter, Section 14.16. Per its governance requirement, TMPA is requesting that the City adopt a resolution appointing a representative to fill the term from July 18, 2022 to July 18, 2024. Staff is planning to place an item for individual consideration on Council’s June 28th agenda to consider approval of a resolution for this appointment. If Council Members wish to reappoint Mr. Cheek or consider other nominees, please let me know no later than Monday, June 13th so staff may compile a listing and other background information to include in the agenda packet for Council’s consideration. ATTACHMENT(S): Notification Letter from TMPA STAFF CONTACT: Antonio Puente, Jr., DME General Manager (940) 349-8487 Antonio.Puente@cityofdenton.com REQUESTOR: Staff initiated PARTICIPTAING DEPARTMENTS: Denton Municipal Electric STAFF TIME TO COMPLETE REPORT: 1 hour 44 RE)e SERVINC THE CITIES OF BRYAN, DENTON, GARLAND & GREENVILLE April 27, 2022 Ms. Sara Hensley, City Manager City of Denton 215 E. McKinneyDenton, TX 76201 RE: TMPA Board Member Appointment Dear Ms. Hensley: Our records indicate that Bill Cheek’s term as a Member of the Board of Directors of the Texas Municipal Power Agency expires on July 18, 2022. The City of Denton will need to reinstate Mr. Cheek or select a new member to serve for the next 2-year term . After the City Council reaches a decision on this matter, please send me a certified resolution or certified meeting minutes specifying the person selected to represent your City on the TMPABoard of Directors. Your cooperation is appreciated Sincerely, b/{arTracy Stracener Assistant SecretaryTM PA Board of Directors Cc Bill CheekJesse Davis Antonio Puente TEXAS MUNICIPAL POWER AGENCY P.O, BOX 7000 BRYAN, TEXAS 77805-7000 (936) 873-2013 45 Friday Report - Council RequestsSummary of RequestDate ReceivedCouncil MemberRequestorStaff AssignedDepartmentCommentsActionStatus1Can staff follow up on previous repairs to a churchparking lot that are worsening?05/20/22Mayor HudspethBrian BoernerSolid WasteStaff will research and follow upwith church officials.In Progress2Inquiry regarding update to language in both code ofethics and charter election code.05/23/22Mayor Pro Tem BeckMack Reinwand, MadisonRorschachInternal Audit LegalInformation will be included in afuture Friday Report.In Progress3Would like an update as to how staff is respondingto harassment concerns by individuals experiencinghomelessness.05/31/22Mayor HudspethDanielle Shaw, Frank Dixon Community Services Police Information will be included in afuture Friday Report.In Progress4Complaint of tall grass in I.O.O.F cemetery. 05/31/22Mayor HudspethGary PackanParksInformation will be included inthe June 3 Friday Report.Complete5Are the water coolers in the Brinker Road arealocated in the city easements?05/20/22Mayor HudspethScott McDonaldDevelopment Services Information will be included inthe June 3 Friday Report.Complete6Request to assist resident with United Way rentalassistance inquiry.05/20/22Mayor HudspethCourtney Douangdara, DanielleShawCommunity ServicesInformation will be included inthe June 3 Friday ReportComplete7Request to investigate drainage on Eagle Creekponds and mosquito concern05/29/22Mayor Pro Tem BeckGary Packan, Scott McDonald Development Services Parks Information will be included inthe June 3 Friday Report.Complete8Request for clarification on Old North Road virtualmeeting05/31/22Mayor Pro Tem BeckBecky DivineyCapital Projects/Engineering Information will be included inthe June 3 Friday Report.Complete9Inquiry regarding the dog bag dispensers at FredMoore Park05/31/22Mayor HudspethGary PackanParksInformation will be included inthe June 3 Friday Report.Complete10Inquiry regarding responsibility to water grass afterAtmos projects05/27/22Council Member Watts Becky DivineyCapital Projects/Engineering Information will be included inthe June 3 Friday Report.Complete11Two Minute Pitch: Increase time for open micspeakers from 4 to 5 minutes.05/18/22Council Member ByrdMonica BenavidesCity Manager's OfficeScheduled for the June 7meeting.Scheduled12Two Minute Pitch: A work session to discussincentives and or requirements for EV chargingelectrical circuitry and infrastructure for single-familyhomes with garages and multifamily developmentsof certain sizes.05/29/22Council Member Watts Antonio Puente, ScottMcDonaldDME Development Services Scheduled for the June 7meeting.Scheduled13Two Minute Pitch: A resolution that directs theDenton Police Department to make investigationsand criminal enforcement related to reproductivehealthcare its lowest priority and recommendsagainst using City funds for such purposes06/01/22Council Member Maguire Monica BenavidesCity Manager's OfficeScheduled for the June 7meeting.Scheduled14Two Minute Pitch: Authorizing staff resources to bespent in developing a policy related to panhandlingand public health policy06/02/22Mayor HudspethRyan AdamsCity Manager's OfficeScheduled for the June 7meeting.ScheduledPage 1 of 1Exported on June 3, 2022 2:04:45 PM CDT46 47 Meeting Calendar City of Denton City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Criteria : Begin Date: 6/1/2022, End Date: 8/31/2022 Date Time Meeting LocationMeeting Body June 2022 6/2/2022 8:00 AM Agenda Committee City Hall Conference Room 6/2/2022 8:30 AM Economic Development Partnership Board Development Service Center Training Rooms 6/2/2022 4:00 PM Public Art Committee Civic Center Community Room 6/6/2022 6:00 PM Board of Ethics Council Work Session Room 6/6/2022 6:00 PM Parks, Recreation and Beautification Board Civic Center Community Room 6/7/2022 2:00 PM City Council Council Work Session Room & Council Chambers 6/8/2022 11:00 AM Economic Development Partnership Board Development Service Center Training Rooms 6/8/2022 3:00 PM Airport Advisory Board Airport Terminal Meeting Room 6/8/2022 6:30 PM Planning and Zoning Commission Council Work Session Room & Council Chambers 6/9/2022 3:00 PM Health & Building Standards Commission Development Service Center Training Rooms 1 and 2 401 N. Elm Street, Denton 6/10/2022 10:00 AM Development Code Review Committee Development Service Center 6/10/2022 12:00 PM Community Services Advisory Committee Development Service Center (401 N. Elm Street, Denton, Texas) 6/10/2022 1:00 PM Committee on the Environment Sustainability Office 6/13/2022 9:00 AM Public Utilities Board Council Work Session Room 6/13/2022 5:30 PM Historic Landmark Commission Development Service Center 6/13/2022 5:30 PM Library Board Meeting Room at the Emily Fowler Central Library, 502 Oakland St., Denton, Texas 6/15/2022 9:00 AM Community Partnership Committee City Hall Conference Room 6/15/2022 9:00 AM Mobility Committee Council Work Session Room 6/22/2022 1:00 PM Civil Service Commission City Hall East Human Resources Training Room Page 1City of Denton Printed on 6/3/2022 48 Date Time Meeting LocationMeeting Body Meeting Calendar continued... 6/22/2022 6:30 PM Planning and Zoning Commission Council Work Session Room & Council Chambers 6/24/2022 10:00 AM Development Code Review Committee Council Work Session Room 6/24/2022 1:00 PM Sustainability Framework Advisory Committee Council Work Session Room 6/24/2022 2:00 PM City Council Development Service Center 6/25/2022 9:00 AM City Council Development Service Center 6/27/2022 9:00 AM Public Utilities Board Council Work Session Room 6/27/2022 5:30 PM Zoning Board of Adjustment Council Work Session Room 6/28/2022 2:00 PM City Council Council Chambers & Council Work Session Room July 2022 7/7/2022 8:00 AM Agenda Committee City Hall Conference Room 7/7/2022 8:30 AM Economic Development Partnership Board Development Service Center Training Rooms 7/7/2022 4:00 PM Public Art Committee Civic Center Community Room 7/8/2022 1:00 PM Committee on the Environment Sustainability Office 7/11/2022 9:00 AM Public Utilities Board Council Work Session Room 7/11/2022 5:30 PM Historic Landmark Commission Development Service Center 7/11/2022 6:00 PM Parks, Recreation and Beautification Board Civic Center Community Room 7/13/2022 10:00 AM Economic Development Partnership Board Development Service Center Training Rooms 7/13/2022 3:00 PM Airport Advisory Board Airport Terminal Meeting Room 7/13/2022 6:30 PM Planning and Zoning Commission Council Work Session Room & Council Chambers 7/18/2022 5:30 PM Traffic Safety Commission Development Service Center 7/19/2022 2:00 PM City Council Council Work Session Room & Council Chambers 7/20/2022 9:00 AM Mobility Committee Council Work Session Room 7/22/2022 1:00 PM Sustainability Framework Advisory Committee Council Work Session Room 7/25/2022 9:00 AM Public Utilities Board Council Work Session Room Page 2City of Denton Printed on 6/3/2022 49 Date Time Meeting LocationMeeting Body Meeting Calendar continued... 7/26/2022 2:00 PM City Council Council Work Session Room & Council Chambers 7/27/2022 11:30 AM Downtown Denton Tax Increment Financing Zone No. 1 Board Development Service Center Training Rooms August 2022 8/1/2022 6:00 PM Parks, Recreation and Beautification Board Civic Center Community Room 8/2/2022 2:00 PM City Council Council Work Session Room & Council Chambers 8/4/2022 8:00 AM Agenda Committee City Hall Conference Room 8/4/2022 8:30 AM Economic Development Partnership Board Development Service Center Training Rooms 8/4/2022 4:00 PM Public Art Committee Civic Center Community Room 8/6/2022 9:00 AM City Council Council Work Session Room 8/8/2022 9:00 AM Public Utilities Board Council Work Session Room 8/8/2022 5:30 PM Historic Landmark Commission Development Service Center 8/10/2022 11:00 AM Economic Development Partnership Board Development Service Center Training Rooms 8/10/2022 3:00 PM Airport Advisory Board Airport Terminal Meeting Room 8/12/2022 1:00 PM Committee on the Environment Sustainability Office 8/16/2022 2:00 PM City Council Council Work Session Room & Council Chambers 8/17/2022 9:00 AM Mobility Committee Council Work Session Room 8/24/2022 12:00 PM Downtown Denton Tax Increment Financing Zone No. 1 Board Development Service Center Training Rooms 8/24/2022 6:00 PM Denton Police Department Chief of Police Advisory Board Public Safety Training Center 719 E. Hickory Street Denton, Texas 76205 8/26/2022 1:00 PM Sustainability Framework Advisory Committee Council Work Session Room Page 3City of Denton Printed on 6/3/2022 50 Meeting Date Item Legistar ID Departments Involved Type Estimated Time A. Health Insurance Operations Audit 22-701 Internal Audit City Business 0:30 B. Board of Ethics Amendments to Ethics Ordinance and Rules of Procedure 22-801 Internal Audit City Business 1:00 C. Council Committees 22-815 City Secretary's Office City Business 0:45 D. CSAC Action Plan Recommendations 22-828 Community Services City Business 0:30 E. Two-Minute Pitch: Byrd, Watts, Maguire, Hudspeth 22-419 City Manager's Office Council Request 0:30 Closed Meeting Item(s):22-832 / 22-1031 Legal/DME/HR City Business 1:00 Total Est. Time: 4:15 June 24, 2022 City Council Retreat - Day 1 (@2:00)City Council Retreat - Day 1 22-582 City Manager's Office City Business 3:00 June 25, 2022 City Council Retreat - Day 2 (@9:00)City Council Retreat - Day 2 22-583 City Manager's Office City Business 8:00 A. FY 2022-23 CIP 22-246 Finance City Business 3:00 B. Electric and Sustainability Budgets 21-2405 Finance City Business 2:00 C. B&C 2022-2024 Appointment Process 22-820 City Secretary's Office City Business 0:30 D. Two-Minute Pitch:22-420 City Manager's Office Council Request 0:30 Closed Meeting Item(s):TBD Legal City Business Total Est. Time: 6:00 July 5, 2022 A. Technology Services Phase 1 Audit 22-558 Internal Audit City Business 0:30 B. FY 2022-23 Utility Budgets (Solid Waste/Water/Wastewater/Drainage/Electric)22-247 Finance City Business 3:00 C. Update from City DCTA Board Representative 21-2805 City Manager's Office City Business 0:30 D. Two-Minute Pitch:22-682 City Manager's Office Council Request 0:30 Closed Meeting Item(s): Legal (if any)City Business Total Est. Time: 4:30 A. Audit Project 028 - Warehouse Operations 21-2810 Internal Audit City Business 0:30 B. Catalyst Fund 22-739 Finance City Business 1:00 C. Roadway Funding Strategies 22-741 Finance City Business 1:00 D. Utilities Budget Follow-Up 22-742 Finance City Business 1:00 E. Two-Minute Pitch: 22-683 City Manager's Office Council Request 0:30 Closed Meeting Item(s): TBD Legal (if any)City Business Total Est. Time: 4:00 A. Audit Project 027 - Technology Services: Phase 2 21-2812 Internal Audit City Business 0:30 B. CERT/Volunteer Corp.22-1083 Fire Council Request: Davis (3/22/2022)0:30 C. Council Contingency Funds 22-1118 City Manager's Office City Business 0:30 D. TWU Master Plan TBD City Manager's Office City Business TBD E. Two-Minute Pitch: 22-684 City Manager's Office Council Request 0:30 Closed Meeting Item(s): TBD Legal (if any)City Business Total Est. Time: 2:00 FY 2022-23 Proposed Budget, CIP, and Five-Year Financial Forecast 22-251 Finance City Business 8:00 Total Est. Time: 8:00 A. FY 2022-23 Annual Internal Audit Plan 21-2816 Internal Audit City Business 0:30 B. FY 2022-23 City Manager Proposed Budget, CIP Budget, Five-Year Forecast 22-750 Finance City Business 1:00 C. Two-Minute Pitch: 22-685 City Manager's Office Council Request 0:30 Closed Meeting Item(s): TBD Legal (if any)City Business Total Est. Time: 2:00 September 6, 2022 FY 2022-23 Proposed Budget, CIP, and Five-Year Financial Forecast TBD Finance City Business TBD Total Est. Time: 2:00 A. Update from DCTA Board Representative 21-2806 City Manager's Office City Business 0:30 B. Audit Project 029 - Police Body-Worn Camera Usage 21-2813 Internal Audit City Business 0:30 C. Two-Minute Pitch: 22-882 City Manager's Office Council Request 0:30 Closed Meeting Item(s) TBD Legal City Business 0:30 Total Est. Time: 2:00 A. Audit Projects: 003-Procurement, 012-Economic Dev. Retention & Expansion and 013-Grants Mgmt.21-2815 Internal Audit City Business 0:45 B. Wastewater Master Plan Update 22-1164 Water Administration City Business 0:45 C. Two-Minute Pitch:22-883 City Manager's Office Council Request 0:30 Closed Meeting Item(s) TBD Legal City Business 0:30 Total Est. Time: 2:30 A. Quakertown Project & Womens Building Naming/Commemoration of former Residents 22-1134 Parks & Recreation Council Request: Byrd (4/19/2022)0:30 C. Two-Minute Pitch: City Manager's Office Council Request 0:30 Closed Meeting Item(s): TBD Legal (if any)City Business Total Est. Time: 1:00 C. Two-Minute Pitch: City Manager's Office Council Request 0:30 Closed Meeting Item(s): TBD Legal (if any)City Business Total Est. Time: 0:30 A. Multiple Audit Follow-up Reviews 22-1166 Internal Audit City Business 0:45 C. Two-Minute Pitch: City Manager's Office Council Request 0:30 Closed Meeting Item(s): TBD Legal (if any)City Business Total Est. Time: 1:15 Other Major Items for Meeting: Public Hearing: Budget Adoption October 25, 2022 Work Session (@2:00 p.m.) Special Called Meeting (@6:30 p.m.) Other Major Items for Meeting: November 1, 2022 Work Session (@2:00 p.m.) Regular Meeting (@6:30 p.m.) Other Major Items for Meeting: NO MEETING - Break Tentative Work Session Topics and Meeting Information Updated: June 3, 2022 June 7, 2022 Work Session (@2:00 p.m.) Regular Meeting (@6:30 p.m.) No other work session items may be added July 19, 2022 Work Session (@2:00 p.m.) Special Called Meeting (@6:30 p.m.) August 16, 2022 Work Session (@2:00 p.m.) Regular Meeting (@6:30 p.m.) September 27, 2022 Work Session (@2:00 p.m.) Regular Meeting (@6:30 p.m.) Only 2 work sessions allowed October 18, 2022 Work Session (@2:00 p.m.) Special Called Meeting (@6:30 p.m.) Other Major Items for Meeting: September 20, 2022 Work Session (@2:00 p.m.) Special Called Meeting (@6:30 p.m.) Other Major Items for Meeting: Public Hearings: Tax Rate and Budget Other Major Items for Meeting: July 26, 2022 Work Session (@2:00 p.m.) Special Called Meeting (@6:30 p.m.) Other Major Items for Meeting: August 2, 2022 Work Session (@2:00 p.m.) Regular Meeting (@6:30 p.m.) Other Major Items for Meeting: NO MEETING - Labor Day Other Major Items for Meeting: Other Major Items for Meeting: Public Hearing to receive Citizen Comment on the 2022 Action Plan for Housing and Community Development June 28, 2022 Work Session (@2:00 p.m.) Regular Meeting (@6:30 p.m.) No other work session items may be added Other Major Items for Meeting: September 13, 2022 Special Called Meeting (If needed) August 6, 2022 (Saturday) Budget Workshop (@9:00 a.m.) *This is for planning purposes only. Dates are subject to change.51 Meeting Date Item Legistar ID Departments Involved Type Estimated Time June 7, 2022 Work Session (@2:00 p.m.) Regular Meeting (@6:30 p.m.) No other work session items may be added A. Denton County Transit Authority Update 21-2807 City Manager's Office City Business 0:30 C. Two-Minute Pitch: City Manager's Office Council Request 0:30 Closed Meeting Item(s): TBD Legal (if any)City Business Total Est. Time: 1:00 A. Denton County Transit Authority Update 21-2807 City Manager's Office City Business 0:30 C. Two-Minute Pitch: City Manager's Office Council Request 0:30 Closed Meeting Item(s): TBD Legal (if any)City Business Total Est. Time: 1:00 A. Audit Project 030 – Auditee Unknown 22-1167 Internal Audit City Business 0:30 C. Two-Minute Pitch: City Manager's Office Council Request 0:30 Closed Meeting Item(s): TBD Legal (if any)City Business Total Est. Time: 1:00 Item Legistar ID Departments Type Estimated Work Session Date Sanger ETJ Boundary Adjustment 21-2653 Development Services City Business Date/:45 Denton Energy Center Alternate Fuel Study TBD DME City Business TBD Item Dates Departments Type Estimated Work Session Date Item Date Approved Department Estimated Hours to Complete Requestor Traffic Feedback Signs (Report only; no work session)Feb. 1, 2022 Traffic Engineering Hudspeth December 13, 2022 Work Session (@2:00 p.m.) Regular Meeting (@6:30 p.m.) Other Major Items for Meeting: November 15, 2022 Work Session (@2:00 p.m.) Special Called Meeting (@6:30 p.m.) Other Major Items for Meeting: December 6, 2022 Work Session (@2:00 p.m.) Special Called Meeting (@6:30 p.m.) Other Major Items for Meeting: Approved Council Request Work Sessions to be Scheduled Work Session Dates to be Determined Council Priorities and Significant Work Plan Items to be Scheduled *This is for planning purposes only. Dates are subject to change.52 1 Street Closure Report: Upcoming ClosuresSCR June 6th - 12thStreet/ IntersectionFromToClosure StartDateClosure EndDateDescriptionDepartmentDepartment Contact1St JamesWheeler RidgeThoroughbred06/20/22 07/29/22 Concrete Panel and Sidewalk RepairStreetsRoy San MiguelPage 1 of 1Exported on June 3, 2022 12:18:19 PM CDT53 2 Street Closure Report: Current ClosuresStreet/ IntersectionFromToClosure StartDateClosure EndDateDescriptionDepartmentDepartment Contact1Allred Rd.JM Prosperity Farm Rustic BarnVenueBonnie Brae St.09/27/21 07/31/22 Storm Installation, CuttingGrade on AllredPrivate Development PublicWorks InspectionsJeremiah Tillman-David2AtlasHercules LnJuno Ln06/06/22 07/15/22 Replacing gas service lines,open trench, from new main.Road will be closed from 8am-4pm Monday through Friday.Atmos Public WorksInspectionsRyan Dromgoole3Bell AveAdministration DrMingo05/16/22 07/15/22 6 in. Asphalt Mill and Overlay /will be split in 3 SectionsStreetsRoy San Miguel4Bernard St.Hickory St.Chestnut St.06/01/23 07/12/23 Water Distribution will bereplacing the water main lineand services.WaterTiffany Sherrane5Bonnie BraeScriptureI-3501/01/20 06/30/22 Installation of watertransmission line andrestoration of asphaltEngineering Streets Water Robin Davis6Box WoodSmoke TreeCul V Sac05/23/22 06/17/22 Concrete Panel Repair StreetsRoy San Miguel7Bradshaw St. NHickory St. EMcKinney St. E03/21/22 07/31/22 Utility installations andpavement replacement.EngineeringScott Fettig8Bryan StreetScripture228 Bryan Street06/06/22 06/07/22 Closing Bryan Street June 6and 7 from 7:00 AM to 4:30 PMto remove tower crane fromjobsite.Public Works Inspections Stephany Trammell9Clover LnRobinwood LnGlenwood Ln05/23/22 09/19/22 Wastewater Collections will beinstalling a new sewer main lineand services.WastewaterTiffany.sherrane@cityofdenton.com10College Park DrPeach StFowler Dr04/18/22 07/20/22 Water Distribution will beinstalling a new water naim lineand services.WaterTiffany Sherrane11Crawford St NHickory St EMcKinney St E03/21/22 07/31/22 Utility installations andpavement replacement.EngineeringScott Fettig12Fowler DrCollege Park DrPeach St04/18/22 07/20/22 Water Distribution will beinstalling a new water main lineand servicesWaterTiffany SHerrane13Foxcroft CircleOld NorthEmerson02/11/22 06/17/22 Street reconstructionEngineeringDustin Draper14Fry StreetOak StScripture05/10/22 06/10/22 Drive Approaches / Sidewalk /Water and Sanitary SewerPrivate Development PublicWorks InspectionsGabrielle Milam15Green IvyRobinson RdEnglish Manor05/23/22 06/17/22 Concrete Panel and SidewalkRepairStreetsRoy San Miguel16Hettie St.Paisley St.McKinney St. E03/21/22 07/31/22 Utility installations andpavement replacement.EngineeringScott Fettig17Hickory St. EExposition St.Ruddell St.05/02/22 08/31/22 Utility installations andpavement replacement.EngineeringScott Fettig18Hill AlleyJacksonMartin06/06/22 08/26/22 Utility replacement and roadwayreconstructionEngineeringSeth Garcia19Hillcrest StScripturePanhandle04/29/22 06/30/22 Street reconstructionEngineeringDustin Draper20JacksonMorseHill Alley06/06/22 08/26/22 Utility replacement and roadwayreconstructionEngineeringSeth Garcia21Jim ChrystalWestern Blvd.Masch Branch04/18/22 08/31/22 Exeter PH2. Installing PublicWater, Sewer, and StormUtilitiesPrivate Development PublicWorks InspectionsJeremiah Tillman-David22Live Oak StRobinwood LnCrestwood Pl05/23/22 09/19/22 Wastewater collections will beinstalling a new sewer main lineand services.WastewaterTiffany Sherrane23Long Rd.Sherman Dr. E (428)Holy Springs Rd05/16/22 06/17/22 Concrete Panel Repair StreetsRoy San Miguel24McKinney St ECrawford RdAudra Ln05/19/22 09/30/22 Utility installations andpavement replacement.EngineeringScott FettigPage 1 of 2Exported on June 3, 2022 12:18:31 PM CDT54 Street/ IntersectionFromToClosure StartDateClosure EndDateDescriptionDepartmentDepartment Contact25Mistywood LnSherwood StRobinwood Ln05/23/22 09/19/22 Wastewater Collections will beinstalling a new sewer main lineand services.WastewaterTiffany Sherrane26Mockingbird LnMingo RdStockton St05/04/22 06/13/22 Sewer manhole installation and2 water taps.Public Works Inspections Armando Beltran27MorseLakeyJackson06/06/22 08/26/22 Utility replacement and roadwayreconstructionEngineeringSeth Garcia28North Texas Blvd.Eagle Dr.Oak St.12/13/21 09/01/22 Utility installations andpavement replacement. Therewill be multiple phases ofclosures. Will not be all at onetime.EngineeringScott Fettig29Oak StFulton StFry St06/10/22 07/01/22 Utility work in roadwayPublic Works Inspections Gabrielle Milam30Oak St. ECrawford St. NWood St. N04/04/22 08/31/22 Utility installations andpavement replacement.EngineeringScott Fettig31Parkside Dr.Windsor Dr.Bowling Green ST.05/31/22 06/10/22 Utility installations andpavement replacement.EngineeringScott Fettig32Peach StLocust StPalmer Dr04/18/22 07/20/22 Water Distribution will beinstalling a new water main lineand services.WaterTiffany Sherrane33Robinwood LnKayewwod DrEmerson Ln05/23/22 09/19/22 Wastewater Collections will beinstalling a new sewer main lineand services.WastewaterTiffany Sherrane34Rose St.Paisley St.Uland St.04/25/22 08/31/22 Pavement Replacement EngineeringScott Fettig35ShagbarkVintageBuckthorn05/31/22 06/17/22 Concrete Panel Replacement EngineeringSeth Garcia36Stella St.North Texas BlvdBonnie Brae10/29/21 06/15/22 Utility installations andpavement replacement.EngineeringScott Fettig37Sycamore StBernardCarroll Blvd05/17/22 07/29/22 Street ReconstructionEngineeringDustin Draper38Uland St.Rose St,.Railroad Ave.04/25/22 08/31/22 Utility installations andpavement replacement.EngineeringScott Fettig39Windsor DriveFireside LaneBonnie Brae06/06/22 08/26/22 Utility installations andpavement replacement.EngineeringScott Fettig40Wood St. NMcKinney St. EHickory St. E04/11/22 06/30/22 Utility installations andpavement replacement.EngineeringScott FettigPage 2 of 2Exported on June 3, 2022 12:18:31 PM CDT55 3 Street Closure Report: Completed ClosuresStreet/ IntersectionFromToClosure StartDateClosure EndDateDescriptionDepartmentDepartment Contact1Bonnie Braeintersection ofOak St.05/10/22 05/14/22 Southbound lanes only Engineering Streets Water Robin Davis2Chestnut St.Welch St. SBernard St.10/18/21 05/31/22 Utility installations andpavement replacement.EngineeringScott Fettig3DepaulDrexelMiramar Dr.03/28/22 05/12/22 Concrete Panel and SidewalkRepairStreetsRoy San Miguel4Foxcroft CircleEmersonArcher Trail01/21/22 05/20/22 Street reconstructionEngineeringDustin Draper5Foxcroft CircleNorthcrest RdOld North02/23/22 05/20/22 Street reconstructionEngineeringDustin Draper6Foxcroft CircleArcher TrailNorthcrest Rd04/25/22 06/03/22 Street reconstructionEngineeringDustin Draper7Hickory Street Eastboundfrom Oak Street SplitBonnie BraeBonnie Brae05/16/22 05/27/22 Southbound lanes on BonnieBrae at Hickory will be closedfor pavement replacement.Traffic on Bonnie Brae will notbe affected. Through traffic willbe closed at Hickory Street fromthe Split on Oak Street.Engineering Streets TrafficWaterRobin Davis8Mayhill Rd.I-35 Service roadColorado Blvd.04/25/22 05/12/22 Concrete Panel repairStreetsRogelio San Miguel9Northwood Terrace Greenwood Dr.Cherrywood Ln03/07/22 05/20/22 Street reconstructionEngineeringDustin Draper10Oak St. EBradshaw St. SWood St. N04/01/22 05/06/22 Wastewater Collections will beinstalling a new wastewatermain line and services.WastewaterTiffany Sherrane11Oak StreetBonnie BraeBonnie Brae05/10/22 05/14/22 Southbound lanes on BonnieBrae at Oak will be closed forpavement replacement. Trafficon Bonnie Brae won't beaffected. Through traffic will beclosed on Oak.Engineering Streets Water Robin Davis12Sweet CloudWinding StreamClear River04/18/22 05/12/22 Concrete Street Panel andSidewalk RepairStreetsRoy San Miguel13Wolftrap Dr.Stuart Rd.Olympia Dr.04/04/22 05/27/22 Laying RCP across the street toconnect to existing storm drain.Private DevelopmentTucker EllerPage 1 of 1Exported on June 3, 2022 12:18:40 PM CDT56