The URL can be used to link to this page

062725 Friday Staff ReportCity Manager’s Office 215 E. McKinney St., Denton, TX 76201  (940) 349-8307 OUR CORE VALUES Inclusion  Collaboration  Quality Service  Strategic Focus  Fiscal Responsibility MEMORANDUM DATE: June 27, 2025 TO: The Honorable Mayor Hudspeth and Council Members FROM: Sara Hensley, City Manager SUBJECT: Friday Staff Report Upcoming Meetings A.CANCELLED - Agenda Committee on Thursday, July 3, 2025, at 8:00 a.m. in the CityCouncil Work Session Room. Please check the City of Denton website for final meeting days and times as information is subject to change after the Friday Report is published. Public Meetings & Agendas | Denton, TX (civicplus.com) General Information & Status Updates A.2025 Texas Environmental Excellence Award Winner: On June 10, the City of Denton was honored with the award for Innovative Operations andManagement for its Commercial Organics Diversion Program at the 2025 Governor’s Texas Environmental Excellence Awards by the Texas Commission on Environmental Quality (TCEQ) in Austin, Texas. The City’s Solid Waste and Wastewaterdepartments partnered to launch a Commercial Organics Diversion Pilot targeting food waste at restaurants within the downtown and Fry Street areas. The project utilizes existing infrastructure and improves Denton’s environment by sustainably diverting food waste, which is a significant portion of the waste going to the City’s landfill. Staff contact: Brandi Neal, Solid Waste and Recycling B.Expanding Opportunities in Southern Downtown – The Design Downtown Denton (DDD)Plan was adopted by City Council in September 2024. The Plan recommends examiningthe rezoning of parcels south of the Square, which are currently zoned Mixed-UseNeighborhood (MN) to Mixed-Use Downtown (MD), to stimulate development. Community engagement meetings were held on May 7 and May 15, 2025. Attendees atboth meetings provided feedback that supported the recommendation to rezone themajority of the area to MD zoning. Staff will present the proposed rezoningrecommendations to the Planning & Zoning Commission during a Work Session on July23, 2025. Sean Jacobson, Development Services C.Monthly Financial Reports – The Monthly Financial Report provides a year-to-datecomprehensive overview of the City of Denton's financial performance, including keyrevenue and expenditure highlights, as well as budget variances. The Monthly Financial Report can be accessed here. Staff contact: Vis Bouaphanthavong, Finance D.Governor Bill Signing – On June 16, Governor Greg Abbott held a bill signing ceremonyat Denton’s Robson Ranch for the Legislature’s property tax relief package. The eventbrought together state and local leaders, including Mayor Gerard Hudspeth, Congressman Brandon Gill, Senators Tan Parker and Brent Hagenbuch, Representatives Jared Patterson, Ben Bumgarner, and Andy Hopper, as well as Denton County Commissioner DianneEdmondson. The newly signed HB 9, SB 4, and SB 23 are set to provide substantial taxrelief for Texans. These bills will raise the personal business property tax exemption to Figure 1(Left to Right): Bobby Janecka, TCEQ Commissioner, Brandi Neal (SWR), Arturo Garica (SWR), and Brooker Paup, TCEQ Chairwoman 2 $125,000, increase the homestead exemption to $140,000 for all homesteads, and increase the homestead exemption for seniors and individuals with disabilities to $200,000. During the ceremony, Mayor Hudspeth engaged in discussions with Governor Abbott, Speaker of the House Dustin Burrows, and Chair of the Senate Local Government Committee Paul Bettencourt. Their conversation centered on the positive impact these property tax reforms will have on Denton residents. Mayor Hudspeth also extended a warm welcome to Denton. The City was honored to be chosen as the location for such a momentous occasion, and extends thanks to the Governor and his staff for coordinating the event. Staff contact: Kristi Fogle, City Manager’s Office E.Mobility Plan Amendments – On June 17, the City Council approved amendments to theCity of Denton Mobility Plan. Staff received questions regarding the amendmentsfollowing the meeting and wanted to provide additional information. The Mobility Plan isa long-range plan that identifies the location and type of roadway, bicycle, and pedestrian facilities required to meet the City of Denton’s long-term growth needs. Staff maderecommendations regarding road placements and their respective functional classificationsby considering future needs. The current plan was adopted by the Council in 2022. Acomprehensive update to the Mobility Plan is expected to be initiated by mid-2026. •MPA25-0001 o Removing a portion of future Underwood Road, extending from FM 1515 toSpringside Road, and instead realigning Underwood Road to align withWestcourt Road. o Removing the proposed realignment of future Corbin Road as shown on the Mobility Plan, extending west from the existing north-south segment of CorbinRoad to Springside Road.o Extending the functional classification of the north-south segment of CorbinRoad, southward to the intersection with the east-west segment of Corbin Road, as a Collector roadway. o Downgrading the functional classification of Springside Road from aSecondary Arterial to a Collector. •MPA 25-0002 o Remove a proposed Future Collector roadway between Interstate 35 (I-35) andWestern Boulevard, south of West University Drive (US 380) and north of JimChristal Road. Following a thorough study of the area, staff recommendsremoving this Future Collector as it has been determined that the roadway is Figure 2 Gov. Greg Abbott shaking hands with Mayor Gerard Hudspeth at Bill Signing in Robson Ranch. 3 not necessary for the overall traffic circulation, accessibility, and safety of the area; will help avoid the additional requirements and costs associated with securing an additional railroad crossing; and will minimize potential environmental impacts to the floodplain within the area Staff contact: Farhan Butt, Transportation Services F.Monthly Mobility Report – Innovative Transportation Solutions (ITS) provides a monthly report that includes an overview of Texas Department of Transportation (TxDOT) regional projects. See the attached ITS Monthly Mobility Report for review. Staff contact: SethGarcia, Capital Projects G.DTV Video Highlights for June - DTV released several videos this month. The following are highlighted videos that the Council is encouraged to share: •Building Beds for Denton Youth YouTube Volunteers from the Denton Kiwanis Club joined forces with the nonprofit Sleep in Heavenly Peace to build beds for local children in need. •Mayfaire Renaissance Market YouTube Mayfaire Renaissance Market! Thanks to our great community for attending and making merry! •Pothole Punch-Out! YouTube We asked our citizens to download Denton 311 and report pothole locations, which we will then target for repair for the first week of July! All videos air on DTV, are shared via social media channels, and are available on the City’s YouTube channel. Staff contact: Billy Matthews, Marketing and Communications H.Mayor’s Pet Spotlight – Tuna is a 1-year-old Pit Bull mix with a vibrant personality. This highly social dog thrives on human interaction and is known for jumping on people to express excitement and affection. Tuna is leash-trained, making walks enjoyable and manageable. Tuna is also good with big dogs, which can be beneficial for adopters with other large pets. Tuna has undergone heartworm treatment and has made a speedy recovery. Tuna is food-motivated, which can be advantageous for training and reinforcing positive behaviors. Having been in the shelter since March 10, Tuna is in urgent need of a home. Providing a stable and loving environment will not only help Tuna continue to thrive but also alleviate the stress of shelter life. Tuna is an ideal companion for someone looking for an affectionate and energetic dog. Please contact Denton Animal Services by phone at (940) 349-7594, or via email at Animal.Services@cityofdenton.com. Staff contact: Bailey Coleson, Animal Services 4 Responses to Council Member Requests for Information A.Street Lighting – On June 3, Council Member Byrd inquired about additional street lighting on Mayhill Road and Edwards Road. Staff are finalizing the criteria and process for newstreet lighting. This will be added to the list of requests for the upcoming fiscal yearpending approval of the budget. Staff contact: Tony Puente, Denton Municipal Electric B.Legislative Recap – At the June 17 Work Session, Mayor Hudspeth inquired about SB 7, which will provide up to $1 billion in funding to water resources in Texas. Specifically, heasked if the provisions of the bill included new rules regarding water losses and leaks. Staffreviewed the bill and supporting documents and found that the bill does require the TexasWater Development Board (TWDB) to develop and maintain on its website informationregarding financial assistance offered to utilities suffering from water losses. While there is not specific funding dedicated to addressing water loss in the bill, TWDB may have thediscretion to utilize the allocated funding for such purposes in the future. Staff will continueto monitor the implementation of SB 7 (and HJR 7), which will be considered as aconstitutional amendment by Texas voters in November, to ensure that Denton is able toparticipate in any potential funding opportunities. Staff contact: Kristi Fogle, City Manager’s Office C.North Lakes Driving Range – On June 20, Mayor Pro Tem Rumohr asked about theexpansion plans for the North Lakes Driving Range. Currently, there are no plans forexpansion. However, the greens are scheduled for professional cleaning on July 9. This will help increase their lifespan and improve playability. Staff contact: Gary Packan, Parksand Recreation D.Aileen Street Completion Date – On June 20, Council Member Holland sent a requestinquiring about the completion date for roadway construction on Aileen Street. The estimated completion date for construction is August 16. Construction is part of theNeighborhood 2 and 6 Capital Improvement Project. For more information on ongoingmajor projects, visit the City’s projects page. Staff contact: Scott Fettig, Capital Projects E.Parking on South Locust Street at East Hickory Street – On June 20, Council Member Holland inquired about the use of the parking space at the intersection and potentiallyconverting it to an Americans with Disabilities Act (ADA) compliant space. Staff iscoordinating with the business owner to transform that specific area into a designatedloading zone. Since the ADA requires an accessible loading and unloading area, this space is not ideal for ADA parking. Staff is evaluating other nearby spaces for potential ADA parking spaces. Staff contact: Farhan Butt, Transportation Services F.City Jail – On June 21, Mayor Hudspeth shared a resident’s inquiry regarding the status ofthe City Jail website. The City of Denton Jail is temporarily closed while a sewer line is replaced at City Hall East. The closure was initially anticipated to conclude by June 30; however, contractors discovered a branch line servicing part of the jail has fractured andrequires full replacement. The jail is expected to reopen by mid-July. 5 Individuals arrested for Class B and above arrests are being booked directly into the Denton County Jail. For certain Class C offenses where an arrest is necessary, individuals are being booked into the Flower Mound jail. Staff contact: Jessica Robledo, Denton Police Department Attachments A. Monthly Mobility Report..................................................................................................7 Informal Staff Reports A.2025-055 Denton Firemen's Relief and Retirement Fund Actuarial Audit.......................25B.2025-056 Council Member Appointments........................................................................62 Information from the City Manager From time to time, I would like to share with the City Council local government-related resources that I find insightful, interesting, or timely. These may be studies, periodicals, reports, or web resources. My intent is to make the Council aware of broad perspectives and discussions and not to suggest any policy or service change. – Sara This year and the upcoming fiscal year are proving to be challenging times for cities and councils. Many cities are facing the same dilemma on how to close the budget gap and still provide services to residents. One of our leading communities in the Metroplex is facing additional tough decisions after cost-cutting measures still left the city with a considerable deficit. Learn more about the strategy to close the gap here. A community in central Texas has taken a different approach to managing the unhoused in the downtown corridor. The article shares insight into the problem and how the city council addresses it. Upcoming Community Events and Public Meetings Please visit the City of Denton website for upcoming community events and details. Information A.Council Requests for Information .....................................................................................65 B.Public Meetings Calendar .................................................................................................67 C.Future Work Session Items ...............................................................................................70 D.Street Closure Report ........................................................................................................71 6 City of Denton Transportation Update Prepared by: June 2025 1 City of Denton Transportation/Mobility Project Status Report Prepared by ITS June 2025 PROJECTS •Project Summary ............................................ page 2 •I-35 North ....................................................... page 3 •I-35/35E/35W Merge...................................... page 5 •I-35E/Mayhill ................................................. page 8 •I-35W Frontage Roads Middle ....................... page 9 •Loop 288 West Frontage Roads ................... page 10 •Loop 288 East-US 380 Connector ................ page 11 •Bonnie Brae Segment 7 ................................ page 12 •FM 1515 ....................................................... page 13 •FM 1173 ....................................................... page 14 •Outer Loop.................................................... page 15 •Glossary of Acronyms .................................. page 16 •TxDOT Funding Categories ......................... page 17 •Denton City Limits ....................................... page 18 7 City of Denton Transportation Update Prepared by: June 2025 2 PROJECT SUMMARY PROJECT LET DATE CONTRACTOR/ ENGINEER CONSTRUCTION COST I-35 North Various Stantec $936,000,747 I-35/35E/35W Merge 04-2024 Sema Construction $588,780,841 I-35E/Mayhill 06-2025 Zachary Construction $123,539,232 I-35W Frontage Roads Middle 09-2028 WSP $446,891,327 Loop 288 West Frontage Roads 09-2028 CP&Y $227,423,354 Loop 288 East-US 380 Connector * Westwood $1,262,000,000 Bonnie Brae Segment 7 * Westwood * FM 1515 * LTRA $69,484,709 FM 1173 * Halff $125,852,145 Outer Loop * LJA $1,547,212,128 TOTAL $5,327,184,483 8 City of Denton Transportation Update Prepared by: June 2025 3 I-35 North CSJ: 0195-02-074; 0195-02-076; 0195-02-081; 0195- 01-116; 0195-02-084; 0195-02-092; 0195-02- 091; 0195-02-090 Schematic Approval: January 31, 2019 Limits: From US 77 to FM 3002 (Cooke County line) Environmental Approval: October 7, 2019 Length: 12.4 miles Description: Reconstruct and widen 4- to 6-lane rural freeway with ramp modifications and reconstruct 4- to 4/6-lane frontage roads ROW Acquisition Complete: July 2023 Est. Construction Cost: $936,000,747 -092: $187,409,484 -091: $158,653,846 -090: $187,500,000 -081: $175,274,676 -116: $110,895,970 -084: $116,266,771 Utility Relocations Complete: -092: August 2026 -091: August 2026 -090: August 2026 -081: June 2025 -116: October 2025 -084: October 2025 Construction Funding: $801,507,230 CAT 4: $220,966,122 CAT 11: $2,574,631 CAT 12: $577,966,477 100% Plans: -092: March 2026 -091: December 2026 -090: June 2027 -081: June 2025 -116: August 2025 -084: August 2025 Firm: Stantec Ready to Let Date: -092: August 2026 -091: December 2026 -090: June 2027 -081: June 2025 -116: October 2025 -084: October 2025 TxDOT PM: Dawit Abraham Let Date: -092: November 2026 -091: November 2027 -090: November 2028 -081: August 2025 -116: December 2029 -084: December 2029 CSJ: 0195-02-092 0195-02-091 0195-02-090 9 City of Denton Transportation Update Prepared by: June 2025 4 Current Activity: • PS&E: Work on the 100% PS&E plan set for the -074 CSJ is underway with updates to 2024 TxDOT Specifications. TxDOT has split -074 CSJ into three separate CSJs for letting. • The 100% PS&E plan set for the -081 CSJ was submitted to Austin on June 6, 2025. • Work on the 100% PS&E plan set for -084 CSJ is underway with updates to the 2024 TxDOT Specifications; some scope being shifted from the -081 CSJ. • Utilities: The status of utilities in conflict is listed below by CSJ/segment. IH-35 from US 77 to South of FM 455; CSJ: 0195-02-074 • Utilities that are clear of construction: Atmos Distribution, Brazos Electric, City of Denton, Frontier, Nortex, OneOK, and Sanger Electric. • Utilities that are currently relocating: Bolivar WSC, CoServ Electric, CenturyLink/Brightspeed, and UTRWD. • Utilities that are pending relocations: Altice, MCI/Verizon, and Zayo. • Utilities that are critical path: None IH-35 from North of FM 455 to View Road; CSJ: 0195-02-081 o Utilities that are clear of construction: AT&T, Bolivar WSC, Brightspeed/CenturyLink, Lumen/Level 3, Nortex, Sanger Electric and Sanger Water/Wastewater. o Utilities that are currently relocating: MCI/Verizon and Zayo. o Utilities that are critical path: MCI/Verizon. IH-35 from View Road to Cooke County Line (FM 3002); CSJ: 0195-02-084 • Utilities that are clear of construction: AT&T, Bolivar WSC, CoServ Electric, Lumen/Level 3, Nortex, and Sanger Electric. • Utilities that are currently relocating: None. • Utilities that are pending relocations: MCI/Verizon, Oncor, and Zayo. • Utilities that are critical path: None. 10 City of Denton Transportation Update Prepared by: June 2025 5 Current Activity: •Construction: The project let for construction on April 4, 2024. The project was awarded toSema Construction with a low bid of $588,780,840.70, at 18% above engineer’s estimate.There are 1,356 working days and 56 months of barricades. See attached TxDOT constructionreport. •Utilities: The status of utilities in conflict is listed below. o Utilities that are clear of construction: AT&T, Atmos Distribution, Atmos Transmission, BrazosValley Electric, Charter/Spectrum, City of Denton Water/Wastewater, CoServ Electric, DMEDistribution, DME Transmission, Fiberlight, Frontier, Lumen, MCI/Verizon, UPN, and Zayo. o Utilities that are currently relocating: City of Denton sewer.o Utilities that are pending relocation: None.o Utilities that are critical path: UPN conflict with installation; COD NBRF adjustment. I-35/35E/35W Merge CSJ: 0195-03-099 (N Texas Blvd to I-35E/W) 0195-03-090 (I-35E/W to US 380) 0195-03-087 (US 380 to US 77) Schematic Approval: -090: August 2011 -087: January 31, 2019 Limits: From North Texas Blvd to US 77 north of Denton Environmental Approval: -090: June 2017 -087: October 7, 2019 Length: 5.073 miles ROW Acquisition Completed: May 2022 Description: Reconstruct interchange and existing frontage roads; reconstruct and widen to 6/8- lane rural freeway with ramp modifications Utility Relocations Complete: May 2025 Est. Construction Cost: $588,780,841 City of Denton Utility Relocations Completed: December 2024 Construction Funding: $588,780,841 CAT 2: $65,978,054 CAT 3: $1,452,495 CAT 4: $75,042,004 CAT 11: $106,973,305 CAT 12 (Strategic Priority): $219,334,983 CAT 12 (Texas Clear Lanes): $120,000,000 100% Plans: January 2024 Firm & Key Contact: AECOM (-090); Stantec (-087) Let Date: April 4, 2024 TxDOT PM: John Rich Construction Completion: November 2029 11 City of Denton Transportation Update Prepared by: June 2025 6 TxDOT Monthly Project Report Date of report: June 6, 2025 Report prepared by: Jonathan Rich Project: 0195-03-087, ETC Control: 0195-03-087, ETCA Highway: IH 35 Limits: IH35E at North Texas Blvd to North of US 77 on IH35 Contractor: Sema TxDOT Project Manager: Jonathan Rich Phone: (945) 290-0731 Contractor’s Project Manager: Shea Hurley Phone: (720) 215-8056 Date Work Began: January 13, 2025 Anticipated Completion Date: November 2029 Current Activities: Current activities: Placing asphalt and concrete at I-35W future off-ramp for FM 1515. Continue retaining wall at I-35W future off-ramp for FM 1515. Continue placing temporary detour at 8 locations including southbound main lanes I-35W, northbound frontage road, and southbound frontage road on I-35 south. Finish placing drainage along southbound frontage road on southbound frontage road I-35 from Bonnie Brae to North Texas. Continue placing drainage from Scripture to US 380 and US 380 to Loop 288. Start permanent drainage from US 380 to Airport Road southbound frontage road. Finish partial culvert at southbound frontage road and Bonnie Brae and culvert south of Loop 288. Continue with braided ramp northbound frontage road before US 380. Start building permanent retaining wall southbound frontage road north of US 380. Finish temporary signal installation at Oak and Bonnie Brae. Place overhead temporary signs throughout project. Finish retaining walls on southbound frontage road north of US 380 and northbound before merge. Fixing potholes throughout project. Fixing damaged traffic control devices throughout project. Forming and pouring structural members for bridges; continue drill shafts and columns. SW3P maintenance. Temporary pavement preparation for future detours. Southbound and northbound frontage road from Bonnie Brae to US 380. Installation of temporary and permanent ITS infrastructure. Northbound frontage road and I-35E main lanes from Bonnie Brae to US 380. Excavation, drilling, shotcrete, temporary shoring, and leveling pad installation for retaining walls. Narrative description of last month’s activities: Northbound frontage road bridge demolition over Oak Street. Traffic switch on temporary southbound frontage road at Oak Street. Earthwork at I-35W future off-ramp for FM 1515. Temporary shoring wall for detour along northbound frontage road from Bonnie Brae to Oak Street and southbound I-35 Oak Street to Airport Road. Activation of US 380 intersection temporary signals. Placing asphalt and concrete at I-35W future off-ramp for FM 1515. Continue retaining wall at I-35W future off-ramp for FM 1515. Continue placing temporary detour at 8 locations including southbound main lanes I-35W and northbound and southbound I-35. Finish placing drainage along southbound frontage road I-35E from Bonnie Brae to North Texas. Continue placing drainage from Scripture to US 380 and US 380 to Loop 288. Start permanent drainage from Scripture to US 380 and US 380 to Loop 288. Start permanent drainage from US 380 to Airport Road southbound frontage road. Finish partial culvert at southbound frontage road and Bonnie Brae and culvert south of Loop 288. Continue with braided ramp northbound frontage road before US 380. Start building permanent retaining wall southbound frontage road north of US 380. Finish temporary signals installation at Oak and Bonnie Brae. Place overhead temporary signs throughout project. Finish retaining walls on southbound frontage road north of US 380 and I-35W northbound before merge. Fixing potholes throughout project. Fixing damaged traffic control devices throughout project. Forming and pouring structural members of bridge. Continue drill shafts and columns, SW3P maintenance. Temporary pavement preparation for future detours. Installation of temporary and permanent ITS infrastructure. Excavation, drilling, shotcrete, temporary shoring, and leveling pad installation for retaining walls. Continue temporary shoring wall for detour along northbound frontage road from Bonnie Brae to Oak Street and southbound frontage road on I-35 from Oak Street to Airport Road. Continue placing drainage from Scripture to US 380 and US 380 to Loop 288. Placing culverts on Bonnie Brae and south of Loop 288. 12 City of Denton Transportation Update Prepared by: June 2025 7 Narrative description of activities planned for next month: Continue placing asphalt and concrete at I-35 future off-ramp for FM 1515. Continue retaining wall at I-35W future off-ramp for FM 1515. Continue placing temporary detour at 8 locations including southbound main lanes I-35W and northbound frontage road I-35E and southbound frontage road I-35E. Finish placing drainage along southbound frontage road I-35E from Bonnie Brae to North Texas. Continue placing drainage from Scripture to US 380 and US 380 to Loop 288. Start permanent drainage from US 380 to Airport Road southbound frontage road. Finish partial culverts at southbound I-35 frontage road and Bonnie Brae and south of Loop 288. Continue with braided ramp northbound frontage road before US 380. Start building permanent retaining wall southbound frontage road north of US 380. Finish temporary signals installation at Oak and Bonnie Brae. Place overhead temporary signs throughout project. Finish retaining walls southbound frontage road I-35 north of US 380 and I-35W northbound before merge. Fixing potholes throughout project. Fixing damaged traffic control devices throughout project. Forming and pouring structural members of bridge. Continue drill shafts and columns. SW3P maintenance. Temporary pavement preparation for future detours. Installation of temporary and permanent ITS infrastructure. Northbound frontage road and I-35E main lane from Bonnie Brae to US 380. Retaining wall excavation, drilling, shotcrete, temporary shoring, and leveling pad installation. Traffic issues: Nightly lane closures. Temporary one-lane frontage road throughout project in multiple locations. Plans for changes in traffic patterns: None Item(s) of work currently controlling project completion: Utility conflicts with drainage structures along frontage roads. Other items of significance: None 13 City of Denton Transportation Update Prepared by: June 2025 8 Current Activity: •PS&E: LTRA updated the plan set to the 2024 TxDOT Specifications and included additionalsheets and quantities requested by TxDOT. LTRA submitted final plan set to TxDOT. •Utilities: The status of utilities in conflict is listed below. o Utilities currently clear of construction: Atmos Gas (Distribution), AT&T, CoServ Gas,City of Denton Water, City of Denton Wastewater, NGG, Oncor, and United PrivateNetworks.o Utilities that are currently relocating: Astound (Grande), Brightspeed/CenturyLink, Charter/Spectrum, DISD, DME, Frontier, Lumen/Level 3, and Zayo. o Utilities that are pending relocation: None. o Utilities that are critical path: DME is placing new poles needed for Charter and Frontierto complete. •Construction: The project let for construction on June 5, 2025. Apparent low bidder is Zachary Construction Corporation with a low bid of $123,539,232.30, at 16.2% below engineer’s estimate.There are 981 working days and 40 months of barricades. I-35E/Mayhill CSJ: 0196-01-109 Schematic Approval: February 2011 Limits: I-35E intersection with Mayhill from Pockrus Page Rd to Loop 288 Environmental Clearance: January 31, 2012 Length: 1.912 miles ROW Acquisition Completed: November 2022 Description: Reconstruct interchange at Mayhill and I-35E and existing 4-lane frontage roads Utility Relocations Complete: August 2025 Construction Cost: $123,539,232 City of Denton Utility Relocations Completed: February 2024 Construction Funding: $139,130,349 CAT 2: $129,130,349 CAT 4: $10,000,000 100% Plans: November 2024 Firm & Key Contact: LTRA, Tyler Martin Let Date: June 5, 2025 TxDOT Project Manager: Chaikou Bah Construction Start: * 14 City of Denton Transportation Update Prepared by: June 2025 9 Current Activity: • PS&E: WSP continues addressing TxDOT comments to 95% plan set and is working toward completion of final plan set. • ROW: There are 58 parcels to acquire. There are: 3 parcels in ED and 55 parcels acquired. ROW acquisition has been placed on hold due to District budgetary constraints. • Utilities: The status of utilities in conflict is listed below. o Utilities that are clear of construction: DME Transmission and UTRWD. o Utilities that are currently relocating: None. o Utilities that are pending relocations: Atmos, CoServ Electric, DME Distribution, Fiberlight, Frontier, Fiberlight, Lumen, and Zayo. o Utilities that are critical path: CoServ pole placement design and placement is needed for telecoms to finalize their design. I-35W Frontage Roads Middle CSJ: 0081-13-071 Schematic Approval: March 20, 2020 Limits: From 0.7 miles south of FM 407 to FM 2449 Environmental Clearance: June 30, 2020 Length: 6.76 miles Project Description: Construct frontage roads ROW Acquisition Complete: June 2026 Est. Construction Cost: $446,891,327 Utility Relocations Complete: December 2027 Construction Funding: $213,024,000 CAT 2: $24,537,247 CAT 12: $188,486,753 100% Plans: December 2025 Firm: WSP Ready to Let Date: December 2027 TxDOT Contact: Gutema Gebriel Let Date: Pending Funding 15 City of Denton Transportation Update Prepared by: June 2025 10 Current Status: •ROW: For RCSJ 2250-02-023, there are 19 parcels to acquire. There are: 2 parcels in ED and 17 parcels in possession. For RCSJ 2250-02-024,there are 20 parcels to acquire. Thereare: 5 parcels in negotiations and 15parcels in possession. •ROW acquisition efforts are on hold dueto District budgetary constraints. •PS&E: CP&Y updated PBLR for final submittal. •CP&Y updated Exhibit A and madefinal submittal on September 30, 2024. •The 95% PS&E plan set submittal was made on September 3, 2024. Thecomment resolution meeting was heldon January 28, 2025. CP&Y continuedaddressing comments and workingtoward final submittal. •TxDOT requested revised trafficnumbers; CP&Y awaiting new pavementdesign to finalize submittal. •Bi-weekly coordination meetings underway. •Utilities: SUE Level A submittal was made on October 11, 2024. Completed two Level A testholes for gas pipeline crossing per TxDOT request. Investigated conflict with Enterprise andAtmos Gas lines. Loop 288 West Frontage Roads CSJ: 2250-00-013 (from I-35 to US 380) 2250-00-032 (from US 380 to I-35W) Schematic Approval: March 20, 2020 Limits: From I-35 to I-35W Environmental Clearance: September 28, 2020 Length: 9.0 miles Description: Construct frontage roads ROW Acquisition Complete: December 2025 Estimated Construction Cost: $227,423,354 -013: $95,315,990 -032: $132,107,364 Utility Relocations Complete: April 2026 ConstructionFunding: $3,000,000 CAT 3 $1,000,000 CAT 7 100% Plans: June 2025 Firm & Key Contact: CP&Y, Tom Cochill & Jacob Roberts Ready to Let Date: April 2026 TxDOT Project Manager: Gutema Gebriel Let Date: Pending Funding 16 City of Denton Transportation Update Prepared by: June 2025 11 Current Activity: •PS&E: Westwood submitted revised schematic on March 28, 2025. Westwood completed100% review comments on May 2, 2025. Westwood is making minor right-of-way footprintrevisions to schematic. •Westwood is making minor revisions to the drainage report. •Westwood is updating estimates, completing traffic control plan, and finalizing TxDOT forms. •Environmental: Tentative public hearing date is April 24, 2025. TxDOT approved project foran Environmental Assessment (EA). Westwood continues working on EnvironmentalAssessment and Technical Reports. Loop 288 East-US 380 Connector CSJ: 2250-02-025; 0135-10-066; 0135-10-066 Schematic Approval: June 2025 Limits: from I-35 to US 380 east of Geesling Road Environmental Clearance: December 2025 Length: 8 miles Project Description: Construct Loop 288 frontage roads and grade separations and an improved connector to US 380 ROW Acquisition Completion: * Estimated Const. Cost: $1.262 billion Utility Relocations Completion: * Construction Funding: $0 100% Plans: * Firm & Key Contact: Westwood, Mark Schluter, Mark Zoellner Ready to Let Date: * TxDOT PM: Stephen Endres Let Date: * 17 City of Denton Transportation Update Prepared by: June 2025 12 Current Activity: • PS&E: The segment between US 77 and Loop 288 has been added to Loop 288 East contract with Westwood. Bonnie Brae Segment 7 CSJ: * Schematic Approval: June 2025 Limits: From US 77 to Loop 288 Environmental Clearance: December 2025 Length: 0.2 miles ROW Acquisition Complete: * Description: Extension of Bonnie Brae north of US 77 Utility Relocations Complete: * Est. Construction Cost: * 100% Plans: * Construction Funding: * Ready to Let Date: * Firm & Key Contact: Westwood, Mark Schluter, Mark Zoellner Let Date: * TxDOT Project Manager: Stephen Endres Construction Start: * 18 City of Denton Transportation Update Prepared by: June 2025 13 Current Activity: •PS&E: LTRA updated plans to the 2024 TxDOT Specifications and submitted the final plan6-25set on June 28, 2024. Plans have been shelved until letting. •Exhibit A: LTRA submitted new Exhibit A for CPKC approval. •Utilities: The status of utilities in conflict is listed below. o Utilities that are clear of construction: none.o Utilities that are currently relocating: none. o Utilities that are pending relocation: AT&T, Atmos, Brightspeed/CenturyLink, Charter/Spectrum, City of Denton Water/Wastewater, DME Distribution, Lumen, MCI/Verizon, and UPN. o Utilities that are critical path: City Water needs to be placed prior to Atmos. DMEpoles are needed for telecoms to begin. FM 1515 CSJ: 1951-01-011 Schematic Re-approval: October 13, 2021 Limits: From Bonnie Brae to Masch Branch Road Environmental Approval: August 4, 2020 Length: 2.096 miles Environmental Re-eval: March 15, 2022 Description: Widen existing 2-lane rural section to a six- lane divided urban roadway ROW Acquisition Complete: July 2023 Est. Construction Cost: $69,484,709 Utility Relocations Complete: January 2026 Construction Funding: $500,000 CAT 7 100% Plans: June 2024 Firm & Key Contact: LTRA, Tyler Martin Ready to Let Date: January 2026 TxDOT Project Manager: Bryan Esmaili-Doki Let Date: Pending Funding 19 City of Denton Transportation Update Prepared by: June 2025 14 Current Activity: • PS&E: Halff resubmitted final PS&E plan set on May 10, 2025. • Halff submitted BNSF Exhibit A on September 24, 2024. • Utilities: The status of utilities in conflict is listed below. o Utilities that are clear of construction: None. o Utilities that are currently relocating: AT&T, Atmos Distribution, CoServ Electric, and Oncor. o Utilities that are pending relocations: Altice, Atmos, Brightspeed, City of Denton Sewer, City of Krum Water/Sewer, Fiberlight, and Zayo. o Utilities that are critical path: City of Krum Water/Sewer; Atmos line resolution to avoid adjusting, and CoServ and Oncor poles need to be placed for telecoms. FM 1173 CSJ: 1059-01-047; 1059-02-002 Schematic Approval: March 20, 2020 Limits: From I-35E to FM 156 Environmental Clearance: August 26, 2021 Length: 3.613 miles Description: Widen and realign to 4/6-lane divided urban road ROW Acquisition Completed: September 2023 Est. Construction Cost: $125,852,145 -047: $62,892,803 -002: $62,959,342 Utility Relocations Complete: June 2026 Construction Funding: $0 100% Plans: May 2025 Firm & Key Contact: Halff Associates, Adam Bazar Ready to Let Date: June 2026 TxDOT PM: Kwan Lam Let Date: Pending Funding 20 City of Denton Transportation Update Prepared by: June 2025 15 Current Activity: • Design: LJA is reviewing and responding to TxDOT comments to 30% schematic. • LJA is working toward completion of 60% submittal. • LJA continues coordination with NCTCOG, TxDOT, USACE, and other agencies. • LJA continues identifying developments adjacent to proposed Outer Loop alignment. • LJA is coordinating with survey to identify existing culvert locations and sizes. • LJA is reviewing IAJR comments. • Utilities: LJA continues developing utility conflict matrix. LJA continues developing Level D map. LJA is coordinating and identifying areas to perform Level B SUE. • Environmental: Evaluating easements and TxDOT property near USACE property. Reviewing additional constraints and areas of concern. Tracking right-of-entry responses. Ongoing field work in areas where right-of-entry has been obtained. LJA is reviewing and responding to comments received regarding various environmental technical reports. • Other: Project website is available: www.DentonCountyOuterLoop.com. • Public Involvement: Anticipate a public meeting to be held in September 2025. Outer Loop CSJ: 0918-46-341 Schematic Approval: March 2026 Limits: From I-35 to the DNT at the Denton County Line Environmental Clearance: September 2026 Length: 23 miles ROW Acquisition Complete: * Description: Construct a six-lane controlled access freeway with continuous frontage roads Utility Relocations Complete: * Est. Construction Cost: $1,547,212,128 100% Plans: * Construction Funding: $0 Ready to Let Date: * Firm & Key Contact: LJA, Tony Kimmey Let Date: * TxDOT Project Manager: Liang Ding Construction Start: * 21 City of Denton Transportation Update Prepared by: June 2025 16 •AADT – Annual Average Daily Traffic •AFA – Advanced Funding Agreement •ARPA – Archeological Resources Protection Act •CE – Categorical Exclusion (environmental clearance process for projects that do not involve significantenvironmental impacts) •CLOMR – (FEMA’s) Conditional Letter of Map Revision •Conformity – Federal requirement in nonattainment areas to conduct air quality analysis on projects,programs, and policies identified in transportation plans, transportation improvement programs,federally funded projects, or projects requiring federal approval •CSJ – (TxDOT’s) Control Section Job Number •DCC – Design Concept Conference •EA – Environmental Assessment •ED – Eminent Domain •EIS – Environmental Impact Statement •EPIC – Environmental Permits, Issues, and Commitments •ESAL – Equivalent Single Axle Load (TxDOT design calculation) •FONSI – Finding of No Significant Impact •IAJR – Interstate Access Justification Request •ICA – Interlocal Cooperative Agreement •IFP – Initial Financial Plan •Let – Official date of receipt and opening of bids •MAPO – Meeting with Affected Property Owners •MPO – Metropolitan Planning Organization •MTP – Metropolitan Transportation Plan •NCTCOG – North Central Texas Council of Governments •NEPA – National Environmental Policy Act •NOPC – Notice of Proposed Construction •NTTA – North Texas Toll Authority •PBLR – Preliminary Bridge Layout Review •PS&E – Plans Specifications and Estimate •PUA – Possession and Use Agreement •ROW – Right-of-Way •RTC – Regional Transportation Council •RTL – Ready to Let (date project is clear for construction but lacks funding for actual let) •RTR – Regional Toll Revenue (funds resulting from certain toll/managed lane projects in DFW region) •RULIS – Right-of-Way, Utilities, Leasing, and Information System •STBG – Surface Transportation Block Grant •STIP – Statewide Transportation Improvement Program •SUE – Subsurface Utility Engineering •SW3P – Storm Water Pollution Prevention Plan •TCP – Traffic Control Plan •TIA – Time Impact Analysis •TPP – Transportation Planning and Programming •TPWD – Texas Parks & Wildlife Department •TTC – Texas Transportation Commission •TxDOT – Texas Department of Transportation •UTP – Unified Transportation Program •VE – Value Engineering Glossary of Acronyms 22 City of Denton Transportation Update Prepared by: June 2025 17 • CAT 1: Preventive Maintenance and Rehabilitation • CAT 2: Metro and Urban Area Corridor Projects / NCTCOG • CAT 3: Non-Traditionally Funded Transportation Projects • CAT 4: Statewide Connectivity Corridor Projects • CAT 5: Congestion Mitigation and Air Quality Improvement / NCTCOG • CAT 6: Structures Replacement and Rehabilitation (Bridge) • CAT 7: Metropolitan Mobility and Rehabilitation / NCTCOG • CAT 8: Safety Projects • CAT 9: Transportation Alternatives • CAT 10: Supplemental Transportation Projects • CAT 11: District Discretionary • CAT 12: Strategic Priority TxDOT Funding Categories 23 City of Denton Transportation Update Prepared by: June 2025 18 Denton City Limits 24 June 27, 2025 Report No. 2025-055 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Denton Firemen's Relief and Retirement Fund Actuarial Audit EXECUTIVE SUMMARY: Section 802.1012 of the Texas Government Code requires an actuarial audit of public retirement systems in Texas with total assets of at least $100 million every five years. The City selected Gabriel, Roeder, Smith & Company (GRS) to perform the actuarial audit. DISCUSSION: The Actuarial Audit includes the following: • Comparison and reconciliation of census data provided by DFRRF and that used by theconsulting actuary for preparing the actuarial valuation. • Review and analysis of the valuation results as well as a review of the mathematicalcalculations for completeness and accuracy, based on a detailed review of a representative sample of the current plan participants. • Verification that all appropriate benefits have been valued and valued accurately. • Evaluationof the actuarial cost method and the actuarial asset valuation method in use and whether othermethods may be more appropriate for DFRRF. • Verification of the reasonableness of the calculation of the unfunded actuarial accrued liability and the amortization period used under the actuarial cost method. • Review of the demographic and economic actuarial assumptions for consistency,reasonableness, and compatibility. Such assumptions shall include, but are not limited tomortality, retirement and separation rates, levels of pay adjustments, rates of investment return, and disability factors. • Assessment of the adherence to relevant Actuarial Standards of Practice (ASOPs) published bythe American Academy of Actuaries. • Assessment of the adherence to the Texas Pension Review Board (PRB) Pension FundingGuidelines The Actuarial Audit outcome: •Based on the review, the actuarial valuation, studies, and reports of the Plan are reasonable, used appropriate assumptions and adhered to Actuarial Standards of Practice and Texas PRB Pension Funding Guidelines. • The audit was overall clean but one primary recommendation is for the Plan to have an actuarial experience study performed to meet the requirement under Texas Government Code Section 802.1014, which was completed May 30, 2025. 25 June 27, 2025 Report No. 2025-055 ATTACHMENTS: 1. Denton Firemen's Relief and Retirement Fund Actuarial Audit STAFF CONTACT: Jessica Williams Chief Financial Officer jessica.jwilliams@cityofdenton.com (940) 349-8244 REQUESTOR: Staff Initiated STAFF TIME TO COMPLETE REPORT: 1 Hour 26 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit Final Actuarial Audit Report in Accordance with Section 802.1012(f) of the Texas Government Code June 19, 2025 27 June 19, 2025 Jessica Williams Chief Financial Officer City of Denton 215 East McKinney Street Denton, TX 76201 Re: Final Report on the Actuarial Audit of the Denton Firemen’s Relief and Retirement Fund Dear Ms. Williams: Gabriel, Roeder, Smith & Company (GRS) is pleased to present this report of an actuarial audit of the December 31, 2023 Actuarial Valuation of the Denton Firemen’s Relief and Retirement Fund (the Fund). The following documents are intended to demonstrate that the plan sponsor has complied with Section 802.1012 of the Texas Government Code which requires an actuarial audit of public retirement systems with total assets of at least $100 million every five years. The following three documents will constitute the final actuarial audit report, as required by Section 802.1012(h) of the Texas Government Code: 1.This cover letter, 2.Actuarial audit report, dated May 16, 2025, and 3.The retained actuary’s response to the actuarial audit report, provided to GRS on June 13, 2024. Following the delivery of the actuarial audit report on May 16, 2025, GRS requested a response to the report, as required by Section 802.1012(g) of the Texas Government Code. On June 9, 2025, the plan sponsor provided an email response to GRS regarding the draft report that states: “The city has reviewed with no further comments.” In addition, a representative of the Fund replied via email to GRS on June 18, 2025 with the statement: “The Board approved the study and Rudd & Wisdom's response.” GRS is pleased to report that, in our professional opinion, we believe the December 31, 2023 Actuarial Valuation of the Denton Firemen’s Relief and Retirement Fund was reasonable, used appropriate assumptions and adhered to Actuarial Standards of Practice and Texas PRB Pension Funding Guidelines. 28 City of Denton, TX – Actuarial Audit of DFRRF June 19, 2025 Page 2 The signing actuaries are independent of the plan sponsor. Mr. Bevins is an Associate of the Society of Actuaries and Mr. White is an Enrolled Actuary, and a Fellow of the Society of Actuaries. Both Mr. Bevins and Mr. White are Members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained herein. Respectfully submitted, Gabriel, Roeder, Smith & Company Thomas J. Bevins, ASA, MAAA Daniel J. White, FSA, MAAA, EA Consultant Regional Director 29 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit Final Actuarial Audit Report in Accordance with Section 802.1012(f) of the Texas Government Code DRAFT – May 16, 2025 30 May 16, 2025 Jessica Williams Chief Financial Officer City of Denton 215 East McKinney Street Denton, TX 76201 Dear Ms. Williams: Gabriel, Roeder, Smith & Company (GRS) is pleased to present this report of an actuarial audit of the December 31, 2023 Actuarial Valuation of the Denton Firemen’s Relief and Retirement Fund (the Fund). We are grateful to the City of Denton (the City) staff, DFRRF staff, and Rudd and Wisdom, Inc., the retained actuary, for their cooperation throughout the actuarial audit process. This actuarial audit involves an independent verification and analysis of the assumptions, procedures, methods, and conclusions used by the retained actuary for DFRRF, in the valuation of the Plan as of December 31, 2023, to ensure that the conclusions are technically sound and conform to the appropriate Standards of Practice as promulgated by the Actuarial Standards Board. GRS is pleased to report to the City and DFRRF that, in our professional opinion, the December 31, 2023 Actuarial Valuation prepared by the retained actuary provides a fair and reasonable assessment of the financial position of the Plan. Throughout this report we make suggestions for ways to improve the work product. We hope that the retained actuary, the City, and DFRRF find these items helpful. Thank you for the opportunity to work on this assignment. Mr. Bevins and Mr. White are Members of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained herein. Respectfully submitted, Gabriel, Roeder, Smith & Company Thomas J. Bevins, ASA, MAAA Daniel J. White, FSA, MAAA, EA Consultant Vice President K:\3409 Denton Fire Audit\Report \DFRRF Actuarial Audit Report 2025.docx 31 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit I Table of Contents Page Section A Executive Summary ....................................................................................................... 2 Section B General Actuarial Audit Procedure ............................................................................... 5 Section C Actuarial Assumptions .................................................................................................. 9 Section D Actuarial Methods and Funding Policy ....................................................................... 18 Section E Actuarial Valuation Results ......................................................................................... 21 Section F Content of the Valuation Report ................................................................................ 24 Section G Final Remarks .............................................................................................................. 27 32 SECTION A EXECUTIVE SUMMARY 33 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit 2 Executive Summary The City of Denton (“the City”) issued a Request for Proposal (RFP) for an Actuarial Audit of the Denton Firemen’s Relief and Retirement Fund (the Fund) and a peer review, including test lives, of the December 31, 2023 actuarial valuation performed by the retained actuary. The City selected Gabriel, Roeder, Smith & Company (GRS) to perform the actuarial audit. The project commenced in February of 2025. This Actuarial Audit includes the following: • Comparison and reconciliation of census data provided by DFRRF and that used by the consulting actuary for preparing the actuarial valuation. • Review and analysis of the valuation results as well as a review of the mathematical calculations for completeness and accuracy, based on a detailed review of a representative sample of the current plan participants. • Verification that all appropriate benefits have been valued and valued accurately. • Evaluation of the actuarial cost method and the actuarial asset valuation method in use and whether other methods may be more appropriate for DFRRF. • Verification of the reasonableness of the calculation of the unfunded actuarial accrued liability and the amortization period used under the actuarial cost method. • Review of the demographic and economic actuarial assumptions for consistency, reasonableness and compatibility. Such assumptions shall include, but are not limited to: mortality, retirement and separation rates, levels of pay adjustments, rates of investment return, and disability factors. • Assessment of the adherence to relevant Actuarial Standards of Practice (ASOPs) published by the American Academy of Actuaries. • Assessment of the adherence to the Texas Pension Review Board (PRB) Pension Funding Guidelines. This actuarial audit will satisfy the requirements of Section 802.1012 of the Texas Government Code which requires an actuarial audit of public retirement systems in Texas with total assets of at least $100 million every five years. Summary of Findings Based on our review, the actuarial valuation, studies, and reports of the Plan are reasonable, used appropriate assumptions and adhered to Actuarial Standards of Practice and Texas PRB Pension Funding Guidelines. We offer the following recommendations based on the valuation methods and assumptions used by the retained actuary in the December 31, 2023 actuarial valuation. Actuarial Assumptions • During the preparation of this actuarial audit, the retained actuary informed us that an actuarial experience study was planned for later this year. Had this not come to light, this would have been a primary recommendation. Thus, we recommend the retained actuary, the City, and the Fund carry out and complete this project as planned. More specifically, we recommend formal analyses 34 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit 3 of demographic assumptions, including but not limited to: retirement rates, termination rates, disability rates, individual salary increases, and mortality assumptions which include whether the more current Pub-2016 mortality tables and mortality improvement assumptions are more appropriate. • When preparing the actuarial experience study, we recommend the retained actuary consider extending the number of years for which Merit, Promotion, and Longevity increases apply (if supported by the Plan’s experience). Actuarial Methods and Funding Policy • No Recommendations. Actuarial Valuation Results • We believe that the valuation results were developed in a reasonable manner based on the current application of the methods. No Recommendations. Content of Valuation Report • Beyond the investment return scenarios shown on p. 3, we recommend the retained actuary expand its disclosures and risk metrics under the guidance of ASOP 51. As an example, this may include a historical table of plan maturity metrics such as: o the ratio of market value of assets to active participant payroll, o the ratio of retired life actuarial accrued liability to total actuarial accrued liability o the ratio of a cash flow measure (such as benefit payments, or contributions less benefit payments) to market value of assets o the ratio of benefit payments to contributions o the duration of the actuarial accrued liability • We recommend providing a reference to the origin of assumptions, whether it be to a formal experience study, published table, or acquired from prior actuary. • We recommend additional disclosures to the summary of Actuarial Methods and Assumptions (Exhibit 11) to include: o Decrement timing o Timing of individual salary increases 35 SECTION B GENERAL ACTUARIAL AUDIT PROCEDURE 36 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit 5 General Actuarial Audit Procedure At the commencement of this engagement, GRS requested the information necessary to thoroughly review the work product of the retained actuary. Specifically, GRS received and reviewed the following items: •Actuarial valuation report as of December 31, 2023, •The Fund’s Investment Policy Statement, revised February 19, 2020, •The Denton Firemen’s Relief and Retirement Fund Plan, effective January 1, 2011 •Civil Service Fire Pay Plan, effective January 7, 2023, •Civil Service Fire Pay Plan, effective February 6, 2024, •DFRRF census data as of December 31, 2023, •DFRRF Salary & Contributions from January 1, 2023 through December 31, 2023, •Northern Trust Pension Benefit Payment Register, dated as of December 19, 2023, and •Calculations from the retained actuary for a sampling of 22 plan participants as of December 31, 2023. Note: GRS requested the most recent experience study. However, a formal experience study has yet to be performed but is expected in 2025. The retained actuary provided an analysis of economic assumptions in the valuation report, which was reviewed by GRS. In performing our review, we: •Reviewed the plan document to understand the benefits provided by the Plan, •Reviewed the appropriateness of the actuarial assumptions, •Reviewed the census data for basic demographic statistics (statuses, pay, benefits, payment forms, etc.), •Reviewed the actuarial reports/studies, and •Reviewed the detailed liability calculation of the sample test lives to ensure that the calculations were consistent with the stated plan provisions, actuarial methods and assumptions. The entire review, which follows, is based on our review of this information and subsequent correspondence with the City, DFRRF, and the retained actuary for clarification and further documentation. Key Actuarial Concepts An actuarial valuation is a detailed statistical simulation of the future operation of a retirement plan using the set of actuarial assumptions adopted by the plan sponsor. It is designed to simulate all of the dynamics of such a retirement plan for each current participant of the plan, including: •Accrual of future service, •Changes in compensation, •Leaving the plan through retirement, disability, withdrawal, or death, and 37 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit 6 • Determination of and payment of benefits from the plan. This simulated dynamic is applied to each active participant of the plan. This simulation results in a set of expected future benefit payments to that participant. Discounting those future payments for the likelihood of survival and at the assumed rate of investment return, produces the Total Present Value of Plan Benefits (TPV) for that participant. The actuarial cost method will allocate this TPV between the participant’s past service (actuarial accrued liability) and future service (future normal costs). PRB Pension Funding Guidelines During our actuarial audit of the Plan, we reviewed the actuarial valuation of the Plan from the perspective of the Texas Pension Review Board’s “Guidance for Developing a Funding Policy”, as adopted July 25, 2024. Note: Although this document was adopted after the valuation date of the report being reviewed in this audit, it was dated prior to the date of the valuation report of September 16, 2024. Furthermore, we believe this version of the Funding Policy Guidance is most appropriate for prospective reports should any changes to funding policies be recommended. The Guidelines state that a funding policy should: 1. Adhere to Texas Government Code, Section 802.2011, which requires the governing board of a Texas public retirement system and, if the system is not a statewide system, its sponsor to jointly develop and adopt the same written funding policy and timely revise the policy to reflect any significant changes, including those made because of a funding soundness restoration plan (FSRP). 2. Strive to balance the following three primary funding goals: benefit security, contribution security, and intergenerational equity. 3. Include clear and concrete funding objectives: a. Must target a funded ratio of 100 percent or greater and be jointly developed and adopted with the system’s sponsor. 4. Select actuarial methods. The system’s actuary should be involved in an advisory role. a. At a minimum, the three actuarial methods that should be addressed are the actuarial cost method, the asset-smoothing method, and the amortization policy. 5. Develop a roadmap to achieve funding objectives. A funding policy should provide a clear plan detailing how the system’s funding goals will be met. This may include: a. Contribution rate structure i. If an Actuarial Determined Contribution (ADC) structure is not used, the funding policy should determine an ADC as a benchmark to monitor if actual contributions will satisfy funding objectives. b. Benefit and contribution change parameters. c. Working with the Sponsor d. Monitoring and evaluation 38 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit 7 6.Adopt actions that will be taken to address actual experience that diverges from assumptions. This may include: a.Risk sharing b.Contributions c.Benefits d.Surplus Management These key actuarial concepts will be discussed in more detail throughout this report. 39 SECTION C ACTUARIAL ASSUMPTIONS 40 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit 9 Actuarial Assumptions Overview The actuarial valuation report contains a description of the actuarial assumptions which were used in the actuarial valuation as of December 31, 2023. Within this report (Appendix A) the retained actuary provides a Review of the Actuarial Economic Assumptions. Additionally, the retained actuary states in its report: “We review the termination and retirement experience since the prior valuation and periodically look back more than two years. We also periodically review the average salaries by years of service to get insights into the promotion, step, and longevity compensation patterns for the purpose of reviewing our compensation increase assumption.” During the preparation of this actuarial audit, the retained actuary informed us that an actuarial experience study was planned for later this year. We have reviewed the assumptions section of the valuation report and the analysis in Appendix A in detail in order to assess the reasonableness of the assumptions used in the actuarial valuation. The set of actuarial assumptions is one of the foundations upon which an actuarial valuation is based. An actuarial valuation is, essentially, a statistical projection of the amount and timing of future benefits to be paid under the retirement plan. In any statistical projection, assumptions as to future events will drive the process. Actuarial valuations are no exception. It is important to understand the nature of the retirement plan and the plan sponsor when assessing the reasonableness of the actuarial assumptions. No projection of future events can be labeled as “correct” or “incorrect”. However, there is a “range of reasonableness” for each assumption. We evaluate individual elements as follows: •Whether or not they fall within the range of reasonableness, and •If they fall within that range, whether they are reasonable for the actuarial valuation of the Plan. Actuarial assumptions for the valuation of retirement plans are of two types: (i) demographic assumptions, and (ii) economic assumptions. We have assessed the reasonableness of both types as part of this actuarial audit. Demographic Assumptions General These assumptions simulate the movement of participants into and out of plan coverage and between status types. Key demographic assumptions are: •turnover among active participants, •retirement patterns among active participants, and •healthy retiree mortality. In addition, there are a number of other demographic assumptions with less substantial impact on the results of the process, such as: 41 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit 10 • disability incidence and mortality among disabled benefit recipients, • mortality among active participants, • distribution of form of payment selection, and • percent of active participants who are married and the relationship of the ages of participants and spouses. Demographic assumptions for a retirement plan such as DFRRF are normally established by statistical studies of recent actual experience, called experience studies. Such studies underlie the assumptions used in the valuations. The measurement of experience is normally affected by simply counting occurrences of an event. Thus, for example, in reviewing retirement patterns, an actuary might count the number of actual retirees among males aged 55 with 30 years of service. These retirements would be compared against the number of total people in that group to generate a raw rate of retirement for that group. Once it is determined whether or not an assumption needs adjustment, setting the new assumption depends upon the extent to which the current experience is an indicator of the long-term future. • Full credibility may be given to the current experience. Under this approach, the new assumptions are set very close to recent experience. • Alternatively, the recent experience might be given only partial credibility. Thus, the new assumptions may be set by blending the recent experience with the prior assumption. • If recent experience is believed to be atypical of the future, such knowledge is taken into account. • Finally, it may be determined that the size of the plan does not provide a large enough sample to make the data credible. In such cases, the experience of the plan may be disregarded and the assumption is set based upon industry standards for similar groups. Experience Study Texas Government Code Section 802.1014 states: “a public retirement system that has assets of at least $100 million shall conduct once every five years an actuarial experience study and shall submit to the board a copy of the actuarial experience study before the 31st day after the date of the study's adoption.” The market value of assets of DFRRF has exceeded the $100 million threshold since the December 31, 2019 actuarial valuation (however the actuarial value of assets has only exceeded $100 million since the December 31, 2021 actuarial valuation), and thus the Fund is currently subject to the requirements under Sec. 802.1014. Dating back to the December 31, 2017 actuarial valuation, the retained actuary has provided a Review of the Actuarial Economic Assumptions in Appendix A of its valuation report. The analyses in Appendix A have included a review of gross investment returns (and net of investment expenses), price inflation, and administrative expenses. We believe this satisfies applicable Actuarial Standards of Practice and the requirements outlined in Texas Government Code Section 802.1014. Under Section B of Exhibit 11: Actuarial Methods and Assumptions of the December 31, 2023 actuarial valuation report the retained actuary states: “We review the termination and retirement experience since the prior valuation and periodically look back more than two years. We also periodically review the 42 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit 11 average salaries by years of service to get insights into the promotion, step, and longevity compensation patterns for the purpose of reviewing our compensation increase assumption.” Although we believe the retained actuary’s periodic internal review of these assumptions satisfy applicable Actuarial Standards of Practice, it is unclear if the requirements outlined in Texas Government Code Section 802.1014 have been satisfied given there has not been a formal experience study report illustrating and/or describing observed data regarding these and other demographic assumptions. Given the PRB’s guidelines and knowing that an experience study is expected to be prepared later this year, we recommend the retained actuary, the City, and the Fund collaborate to carry out this project as planned. Observations on Assumptions We acknowledge that valuations performed on a biennial frequency pose a challenge from an actuary’s perspective in regard to measuring demographic gains and losses, as well as simply compiling sufficient data (i.e. exposures, actual counts, and expected counts) necessary to perform experience studies, given that rates used for demographic assumptions are on an annual basis. Thus, there are “gaps” that must be filled in order to align actual outcomes with expected outcomes. Overall, it appears that the current demographic assumptions are reasonable. However, we did notice that several primary assumptions (specifically retirement rates, termination rates, disability rates, and individual salary increases) have been unchanged since at least the December 31, 2015 actuarial valuation. It is important to note that this does not imply these assumptions are not appropriate. This does, however, reinforce our recommendation for the retained actuary to perform the formal experience study as planned to ensure the continued appropriateness of these assumptions or recommend adjustments as necessary. Below, we offer general observations and considerations for the retained actuary based on our experiences with similar plans. Retirement – The current assumption contains rates that increase incrementally from 5% to 15% to 30% to 50% from the ages of 50 to 64 with an ultimate rate of 100% at age 65. While this assumption is completely reasonable, we have observed that public safety plans that allow for normal retirement at relatively young ages (i.e. attainment of age 50 with 20 years of service for DFRRF) tend to have “spikes” in retirement behavior at certain ages or eligibilities. For example, we may anticipate a spike at the maximum RETRO DROP eligibility of age 56 and 26 years of service (assuming 20 years was attained by age 50). We recommend this be observed and measured in the formal experience study. Turnover – We believe the current termination rates follow a reasonable decreasing pattern. We have observed that in firefighter plans that as new firefighters experience the physical and mental demands and qualifications of the occupation, this often causes even higher turnover in the first two to three years, but level off significantly once the employee has established themselves in the routine of the occupation and purse a long-term career. Again, we recommend this be observed and measured in the formal experience study. Disability Incidence – In general, very little retirement plan experience exists in order to set a reasonable assumption based on actual retirement plan experience. The current assumption is reasonable and within 43 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit 12 industry standards. This assumption is less material than others and we have no further comment regarding this assumption. Mortality – The main demographic assumption in an actuarial valuation is the rates of mortality because this assumption is a predictor of how long pension payments will be made by the trust. The current mortality assumption for active participants, healthy annuitants, and disabled annuitants is based on the gender distinct Pub-2010 Safety Employees Mortality Tables with generational mortality improvements using Scale MP-2019. We concur that the Pub-2010 Safety tables are appropriate tables. However, we recommend the retained actuary consider using the disabled lives subset for current and future disabled retirees and whether the more current Pub-2016 mortality tables and mortality improvement assumptions developed by the Society of Actuaries are more appropriate when preparing the experience study. RETRO DROP Election – The current assumption is 100% of service retirements eligible to elect at least a 12-month lump sum and that participants will elect the maximum allowable months (up to 48 months). Without historical statistics to confirm actual behavior, we believe this is an appropriate assumption. Percent Married – We have confirmed the 90% married assumption at retirement reasonably aligns with the distribution of forms of payment in the December 31, 2023 census data. Economic Assumptions General These assumptions simulate the impact of economic forces on the amounts and values of future benefits. Key economic assumptions are the assumed rate of investment return and assumed rates of future salary increase. All economic assumptions are built upon an underlying inflation assumption. Inflation Inflation refers to mean price inflation as measured by annual increases in the Consumer Price Index (CPI). This inflation assumption underlies most of the other economic assumptions. It primarily impacts investment return and salary increases. The current explicit inflation assumption is 2.50%. This inflation assumption has been in effect since at least the December 31, 2015 actuarial valuation and was recommended to stay in effect based on analysis shown in Appendix A of the December 31, 2023 valuation report. In our review of the 2024 capital market assumption sets for the twelve investment consulting firms listed on the next page, the average assumption for inflation was approximately 2.39%, with a range of 2.13% to 2.70%. It should be noted that all of these investment consulting firms set their assumptions based on approximately a ten-year outlook, while actuaries generally must make longer projections. 44 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit 13 In the Social Security Administration’s 2024 Trustees Report, the Office of the Chief Actuary projected a long-term average annual inflation rate of 2.4% under the intermediate cost assumption. (The low-cost assumption was 3.0% and the high cost assumption was 1.8%). These inflation assumptions forecasts have not materially changed for several years, as they were the same rates as in the corresponding reports from 2020 through 2023. The Philadelphia Federal Reserve conducts a quarterly survey of the Society of Professional Forecasters. In their forecast immediately preceding the December 31, 2023 actuarial valuation, fourth quarter of 2023, was for inflation over the next ten years to average 2.40%. Over the shorter term, the society of Professional Forecasters are predicting inflation to average 2.5% and 2.3% for the calendar years 2024 and 2025, respectively. We consider the 2.50% assumption to be within the reasonable range. However, given developments of high inflation in recent years, we also recommend that the retained actuary continue to monitor this assumption (which they appear to be doing annually) to ensure that it remains within a reasonable range. Investment Return The investment return assumption is one of the principal assumptions in any actuarial valuation of a retirement plan. It is used to discount future expected benefit payments to the valuation date, in order to determine the liabilities of the retirement plan. Even a small change to this assumption can produce significant changes to the liabilities and contribution rates. The current assumption incorporates inflation of 2.50% per annum plus an annual real rate of return of 4.25%, net of investment-related expenses paid from the trust, for an assumed nominal rate of return of 6.75%. We believe an appropriate approach to reviewing an investment return assumption is to determine the median expected portfolio return given the retirement plan’s target allocation and a given set of capital market assumptions. Per the Plan’s Investment Policy Statement, revised February 19, 2020, the Plan’s current target asset allocation is: Asset Class Target % Range % Domestic Large-Cap 40 25-50 Domestic Small & Mid-Cap 10 5-15 International Equity 10 5-15 Fixed Income 15 5-20 Cash and Equivalents 2 1-15 Alternative Investments 8 5-10 Real Estate 15 10-20 Because GRS is a benefit consulting firm and does not develop or maintain our own capital market assumptions, we reviewed assumptions developed and published by the following investment consulting firms: •Aon •Meketa •Black Rock •Mercer •BNY Mellon •NEPC • 45 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit 14 •Callan •Northern Trust •Cambridge •Verus •JP Morgan •Wilshire These investment consulting firms periodically issue reports that describe their capital market assumptions, that is, their estimates of expected returns, volatility, and correlations. While these assumptions are developed based upon historical analysis, many of these firms also incorporate forward looking adjustments to better reflect near-term expectations. The estimates for core investments (i.e. fixed income, equities, and real estate) are generally based on anticipated returns produced by passive index funds. In addition to examining the expected geometric return, it is important to review anticipated volatility of the investment portfolio and understand the range of long-term net return that could be expected to be produced by the investment portfolio. Therefore, the following table provides the 40th, 50th, and 60th percentiles of the 20-year geometric average of the expected nominal return, net of investment-related expenses paid from the trust, as well as the probability of exceeding the current 6.75% assumption. The table above shows that the resulting 20-year geometric average of the expected nominal return is 6.51%. Additionally, the table above documents that the average probability of exceeding the current 6.75% investment return assumption over a 20-year period is 46.9%. As an additional point of reference, the average one-year arithmetic return of the 12 investment consultants was 7.23%. However, looking back over previous years of capital market assumptions, the three-year average of arithmetic returns from 2022 through 2024 is 6.80%. This illustrates how short-term outlooks can change significantly from one year to the next. The current investment return assumption falls within an appropriate range and we believe that the assumption is reasonable for this purpose. Probability of exceeding 40th 50th 60th 6.75% (1)(2)(3)(4)(5) 1 4.20%4.89%5.58%24.85% 2 4.65%5.38%6.11%31.83% 3 5.24%5.93%6.63%38.41% 4 5.55%6.27%6.99%43.28% 5 5.89%6.57%7.26%47.38% 6 6.04%6.74%7.44%49.82% 7 6.07%6.77%7.48%50.30% 8 6.09%6.81%7.54%50.83% 9 6.34%7.00%7.66%53.83% 10 6.41%7.11%7.82%55.16% 11 6.56%7.21%7.86%57.09% 12 6.72%7.43%8.13%59.62% Average 5.81%6.51%7.21%46.9% Capital Market Assumption Set (CMA) Distribution of 20-Year Average Geometric Net Nominal Return 46 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit 15 Earnings Progression In general, assumed rates of pay increase are often constructed as the total of three main components: • Price inflation – currently 2.50% • Economic Productivity Increases – currently 0.50% • Merit, Promotion, and Longevity – This portion of the salary increase assumption reflects components such as promotional increases as well as increases for merit and longevity. This portion of the assumption is not related to inflation. The current assumptions vary this component based on the participant’s years of service. In the context of a typical employer pay scale, pay levels are set for various employment grades. In general, this pay scale is adjusted as follows: • The inflation and economic productivity assumptions, collectively referred to as wage inflation, reflect the overall increases of the entire pay scale, and • The Merit, Promotion, and Longevity increase assumption reflects movement of participants through the pay scale. Based on the building block approach outlined above, the earnings progression assumption is based on the sum of the expected pay increases related to wage inflation plus a component for merit, promotion and longevity. We find that the current 3.00% wage inflation (2.50% price inflation plus 0.50% economic productivity) is reasonable for this plan. Currently, the Merit, Promotion, and Longevity increases (combined as a single rate), range from 6.00% for the first five years, 3.00% for the next ten years, and 0% thereafter. These rates are compounded with the 3.00% wage inflation assumption. As previously noted in this audit report, there has been no formal experience study in which we can validate actual data supporting this assumption. However, based on our experience with similar plans and known pay scales, such as the “2024 Civil Service Pay Plan” provided by the Fund, we believe the current assumption is within the range of reasonableness for the purpose of the intended measurements. Nonetheless, we once again recommend a careful review of this assumption by the retained actuary in the upcoming experience study. Below we offer some general comments the retained actuary may wish to consider in their review. The current assumption follows an incrementally decreasing pattern of salary increases over a person’s career. This is the standard for most plans and may well continue to be the most appropriate. However, in our experience with a relatively homogenous workforce and a clearly defined hierarchy, an observation of a mid-career pay spike from certain promotions may be relevant. In other words, how many firefighters advance through the ranks and at what point in their career does that typically happen? Each promotion 47 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit 16 in title (i.e. Firefighter to Driver to Lieutenant to Fire Captain to Fire Battalion Chief, etc.) may come with a significant pay increase. For example, moving from Step C (4+ years) as Fire Captain to Step A of Fire Battalion Chief comes with a 7.9% increase in pay. After how many years of service does this promotion typically take place, what proportion of employees reach this promotion, and is it in alignment with the Merit, Promotion, and Longevity increase assumptions? In the current assumptions, the Merit, Promotion, and Longevity increases end after 15 years of service. This essentially implies that no employees get promotions after 15 years of service. Does this align with the timing of actual promotions indicated in the Civil Service Fire Pay Plan hierarchy? If not, we recommend extending this component to greater than 15 years of service. We find that when it comes to salary increases, a longer duration than the typical four to five years of experience utilized in experience studies illustrates the economic cycle for compensation (e.g. eight to ten years). Based on data provided during this audit, it appears the retained actuary has maintained an extensive amount of historical pay. In the upcoming experience study, we recommend that the retained actuary consider utilizing eight to ten years of salary data to analyze compensation increases, as well as consider extending the number of years for which Merit, Promotion, and Longevity increases apply. Summary The set of actuarial assumptions and methods, taken in combination, are within the range of reasonableness and established in accordance with ASOP No. 27, Selection of Economic Assumptions for Measuring Pension Obligations, ASOP No. 35, Selection of Demographic and Other Noneconomic Assumptions for Measuring Pension Obligations, and the Texas PRB Guidelines for Actuarial Soundness. We have the following recommendations regarding the actuarial assumptions: (1) In the next experience study, we recommend the retained actuary consider using the disabled lives subset for current and future disabled retirees and updating the mortality improvement table to the most recent version of the MP tables. (2) In the next experience study, we recommend the retained actuary consider that observations of atypical patterns (i.e. other than strictly increasing or decreasing) for certain assumptions, specifically retirement rates and salary increases, may be valid and appropriate to use. (3) In the next experience study, we recommend the retained actuary utilize a longer duration of data (eight to ten years) for the purpose of determining individual salary increases, as well as consider extending the number of years for which Merit, Promotion, and Longevity increases apply. 48 SECTION D ACTUARIAL METHODS AND FUNDING POLICY 49 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit 18 Actuarial Methods and Funding Policy Actuarial Cost Methods General The ultimate cost of the Plan is equal to the benefits paid plus the expenses related to operating the Plan. This cost is funded through contributions to the Plan plus the investment return on accumulated contributions which are not immediately needed to pay benefits or expenses. The level and timing of the contributions needed to fund the ultimate cost are determined by the actuarial assumptions, plan provisions, participant characteristics, investment experience, and the actuarial cost method. An actuarial cost method is a mathematical process for allocating the dollar amount of the Total Present Value of Plan Benefits (TPV) between future normal costs and the Actuarial Accrued Liability (AAL). The retained actuary uses the Entry Age Normal actuarial cost method, characterized by: (1) Normal Cost (NC) – the level percent of payroll contribution, paid from each participant’s date of hire to date of retirement, which will accumulate enough assets at retirement to fund the participant’s projected benefits from retirement to death. (2) Actuarial Accrued Liability – the excess of the TPV over the present value of all future remaining normal costs. The Entry Age Normal actuarial cost method is the most prevalent funding method in the public sector. It is appropriate for the public sector because it produces costs that remain relatively stable as a percentage of payroll over time, resulting in intergenerational equity for taxpayers. Historically, most public plans have used the Entry Age Normal actuarial cost method. Therefore, the retained actuary’s stated methods for allocating the liabilities of the Plan are certainly in line with national trends. Comments on the Cost Method We believe that the use of the Entry Age Normal actuarial cost method is reasonable in this situation. Asset Valuation Method Sharp short-term swings in market value can result in large fluctuations in the contributions required to fund the Plan. Thus, many actuaries use an asset valuation method which smooths out these fluctuations in support of achieving level contributions. A good asset valuation method places values on a retirement plan’s assets which are related to current market value but which will also produce a smoother pattern of costs. ASOP No. 44, Selection and Use of Asset Valuation Methods for Pension Valuations, provides a framework for the determination of the actuarial value of assets (AVA) emphasizing that the method should bear a reasonable relationship to the market value of assets (MVA), recognize investment gains and losses over 50 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit 19 an appropriate time period, and avoid systematic bias that would overstate or understate the AVA in comparison to MVA. The actuarial valuation of the Plan currently utilizes a smoothed asset valuation method that immediately recognizes income equal to the expected return on valuation assets, based on the assumed valuation interest rate (6.75%). Differences between the assumed investment return on valuation assets and the actual market investment return is recognized over a five-year period. Further, the AVA is constrained to be within 90% and 110% of the MVA. This “corridor” assures that the AVA will always be within a reasonable range around the MVA. The smoothing method used for the actuarial valuation of the Plan is very common among public employee retirement systems. We feel that this method complies with ASOP No. 44, Selection and Use of Asset Valuation Methods for Pension Valuations. Additionally, this method is reasonable and appropriately applied for the valuation. Funding Policy As stated in the retained actuary’s December 31, 2023 valuation report, the City’s funding policy for the Denton Firefighter’s Relief and Retirement Fund is: “a modified actuarially determined contribution rate (ADCR). Under that policy, the city’s initial contribution rate was set at 18.5% and is to be re-evaluated by the city council following every actuarial valuation. The funding policy has the intent of paying off the unfunded actuarial accrued liability (UAAL) over a closed 25-year period or sooner. The policy language implies that the rate should stay at 18.5% for at least the first five years, even if the ADCR is less than 18.5%, in order to pay down the UAAL. A key requirement of the policy is city approval of any change to the contribution level. The funding policy begins with the 18.5% city contribution rate, has an ADCR over a closed 25-year period we assume began January 1, 2018, but in no event will the city contribution rate be less than the contribution rate to its TMRS plan for the other city employees. The ADCR over the 19 years remaining in the closed period as of December 31, 2023 is 13.33% based on this actuarial valuation. The TMRS rate for the year beginning January 1, 2024 is 18.94% and for the year beginning January 1, 2025 is 18.88%.” Although the ADCR is slightly above the 18.5% floor, the retained actuary assumes contributions of 18.5% of pay for the purpose of determining the amortization period of the Unfunded Actuarially Accrued Liability (“UAAL”). We believe this approach is reasonable and provides some conservatism for potential adverse experience. We believe the retained actuary’s summary accurately describes the funding policy laid out in Article 12 of the Meet and Confer Agreement approved September 19, 2023. Furthermore, we believe the funding policy in Article 12 complies with the provisions of the Plan and the Texas PRB’s Guidance for Developing a Funding Policy. Additionally, on pages 1 and 2 of the valuation report, the retained actuary provides sound reasoning to support the City maintaining a contribution no less than 18.5%. 51 SECTION E ACTUARIAL VALUATION RESULTS 52 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit 21 Actuarial Valuation Results Benefits At its core, the actuarial valuation and the resulting funding policy contribution must properly reflect the benefit structure of the retirement plan. We have reviewed both the Plan document and the retained actuary’s benefit summary and compared these to the individual sample calculations provided to us. In general, the benefits promised by the Plan were reasonably incorporated in the actuarial valuation of the Plan. Actuarial Valuation Results As part of our review, GRS requested sample participant test life calculations from the retained actuary to ensure that the retained actuary valued the correct benefit levels, used the correct assumptions, and calculated the liabilities correctly on an individual basis. Generally accepted actuarial standards and practices provide actuaries with the basic mathematics and framework for calculating the actuarial results. When it comes to applying those actuarial standards to complex calculations, differences may exist due to individual opinion on the best way to make those complex calculations. This may lead to differences in the calculated results, but these differences should not be material. Active Participants. At the onset of the review, we requested that the retained actuary provide sample test life calculations for 10 active participants. The retained actuary provided the information we requested regarding the active participants with sufficient detail to allow for a thorough review of the calculations. Based on our review of the aspects of the actuarial valuation, the liability determination of active participants was reasonable and appropriately determined. Participants with deferred benefits. At the onset of the review, we requested that the retained actuary provide sample test life calculations for two deferred vested participants waiting to commence their retirement benefits, including two disabled deferred. The retained actuary provided the information we requested regarding these participants with deferred benefits with sufficient detail to allow for a thorough review of the calculations. Based on our review, the liability determination of these participants was reasonable and consistent with the stated assumptions and methods. Annuitants. At the onset of the review, we requested that the retained actuary provide sample test life calculations for 10 annuitants. The retained actuary provided the information we requested regarding the annuitants with sufficient detail to allow for a thorough review of the calculations. 53 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit 22 Based on our review, the liability determination of annuitants was reasonable and consistent with the stated assumptions and methods. Summary Besides the comments made in Section C of this report, we believe that the valuation results are developed in a reasonable manner. 54 SECTION F CONTENT OF THE VALUATION REPORT 55 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit 24 Content of the Valuation Report ASOP No. 4, Measuring Pension Obligations and Determining Pension Plan Costs or Contributions, and ASOP No. 41, Actuarial Communications, provide guidance for measuring pension obligations and communicating the results. The Standards list specific elements to be included, either directly or by references to prior communication, in pension actuarial communications. The pertinent items that should be included in actuarial valuation report on a pension plan should include: A. The name of the person and/or firm retaining the actuary and the purposes that the communication is intended to serve. B. A statement as to the effective date of the calculations, the date as of which the participant and financial information were compiled, and the sources and adequacy of such information. C. An outline of the benefits being discussed or valued and of any significant benefits not included in the actuarial determinations. D. A summary of the participant information, separated into significant categories such as active, retired, and terminated with future benefits payable. Actuaries are encouraged to include a detailed display of the characteristics of each category and reconciliation with prior reported data. E. A description of the actuarial assumptions, cost method and the asset valuation method used. Changes in assumptions and methods from those used in previous communications should be stated and their effects noted. If the actuary expects that the long-term trend of costs resulting from the continued use of present assumptions and methods would result in a significantly increased or decreased cost basis, this should also be communicated. F. A summary of asset information and derivation of the actuarial value of assets. Actuaries are encouraged to include an asset summary by category of investment and reconciliation with prior reported assets showing total contributions, benefits, investment return, and any other reconciliation items. G. A statement of the findings, conclusions, or recommendations necessary to satisfy the purpose of the communication and a summary of the actuarial determinations upon which these are based. The communication should include applicable actuarial information regarding financial reporting. Actuaries are encouraged to include derivation of the items underlying these actuarial determinations. H. A disclosure of any facts which, if not disclosed, might reasonably be expected to lead to an incomplete understanding of the communication. Also, recently added to ASOP No. 4 is guidance for the actuary to calculate a Low-Default-Risk Obligation Measure (“LDROM”). This measurement is similar to the Actuarial Accrued Liability, but using a discount rate based on “low-default-risk fixed income securities whose cash flows are reasonably consistent with the pattern of benefits expected to be paid in the future.” The retained actuary has included this measure in Appendix B. We believe the retained actuary used an appropriate discount rate and properly disclosed its source, satisfying this requirement in ASOP No.4. 56 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit 25 Regarding Items B. (outline of Plan benefits) and E. (describing assumptions and methods) above, we offer the following minor suggestions to the retained actuary to enhance completeness and clarity: • Include a disclosure of decrement timing • Include a disclosure of the timing of individual salary increases ASOP No. 51, Assessment and Disclosure of Risk Associated with Measuring Pension Obligations and Determining Pension Plan Contributions, supplements the guidance in the aforementioned ASOP Nos. 4, 27, 35, and 44. ASOP No. 51 provides several examples of methods to assess risk that may include, but are not limited to “scenario tests, sensitivity tests, stochastic modeling, stress tests, and a comparison of an actuarial present value using a discount rate derived from minimal-risk investments to a corresponding actuarial present value from the funding valuation”. On page 3 of the valuation report the retained actuary provides scenarios of variation in the investment returns over the short term and the impact on the UAAL amortization period. Throughout the Valuation Summary discussion in Section 1 of the valuation report, the retained actuary provides additional language that satisfies ASOP No. 51. Section 3.7 of ASOP No. 51 provides guidance for the actuary to calculate and disclose plan maturity measures. Examples include: • the ratio of market value of assets to active participant payroll; • the ratio of retired life actuarial accrued liability to total actuarial accrued liability; • the ratio of a cash flow measure (such as benefit payments, or contributions less benefit payments) to market value of assets; • the ratio of benefit payments to contributions; and • the duration of the actuarial accrued liability. We recommend the retained actuary include in its report a historical table of some or all the measures above to help stakeholders identify risk trends over time. Summary In general, the actuarial valuation report complied with the applicable Actuarial Standards of Practice. The presentation of actuarial methods and assumptions is generally complete and understandable. The methods described in this section are reasonable and appropriate for public retirement plans. We recommend the retained actuary clarify a few assumption details and expand its disclosure under the guidance of ASOP No 51, as noted above. 57 SECTION G FINAL REMARKS 58 Denton Firemen’s Relief and Retirement Fund Report of an Actuarial Audit 27 Final Remarks The auditing actuarial firm, Gabriel, Roeder, Smith & Company (GRS), is independent of the DFRRF, the plan sponsor (the City), and retained actuarial firm. The auditing actuaries are not aware of any conflict of interest that would impair the objectivity of this work. We have presented a few suggestions for areas where we believe the product can be improved and we hope that DFRRF, the plan sponsor, and the retained actuary find these suggestions useful. The retained actuary has access to information and an extensive history of experience with DFRRF. We understand that the retained actuary may agree with some of our recommendations, while rejecting others. We ask that the retained actuary and DFRRF consider our recommendations carefully. 59 W.Lee Bello, A.S.A. Mitchell L. Bilbe, F.S.A. Evan L. Dial, F.S.A. Philip S. Dial, F.S.A. Charles V. Faerber, F.S.A., A.C.A.S. Mark R. Fenlaw, F.S.A. Brandon L. Fuller, F.S.A. Christopher S. Johnson, F.S.A. Oliver B. Kiel, F.S.A. Dustin J. Kim, F.S.A. Xiuyu Li, A.C.A.S. Edward A. Mire, F.S.A. Rebecca B. Morris, A.S.A. Amanda L. Murphy, F.S.A. Michael J. Muth, F.S.A. Khiem Ngo, F.S.A., A.C.A.S. Timothy B. Seifert, F.S.A. Raymond W. Tilotta Ronald W. Tobleman, F.S.A. David G. Wilkes, F.S.A. 9500 Arboretum Blvd., Suite 200 Austin, Texas 78759 www.ruddwisdom.com Phone: (512) 346-1590 Fax: (512) 345-7437 ` June 13, 2025 Mr. Thomas J. Bevins Gabriel, Roeder, Smith & Company (GRS) 5605 North MacArthur Blvd., Suite 870 Irving, TX 75038 Re: Response to the Preliminary Report of the Actuarial Audit of the December 31, 2023 Actuarial Valuation of the Denton FRRF Dear Mr. Bevins: The City of Denton engaged your firm, Gabriel, Roeder, Smith & Company (GRS), to conduct an actuarial audit of the December 31, 2023 actuarial valuation we performed for the Denton Firemen’s Relief and Retirement Fund (Fund or DFRRF). We received your May 16, 2025 preliminary report of the actuarial audit. The state law requiring actuarial audits of public employee pension plans gives the Fund Board of Trustees the opportunity to make written comments in response to your preliminary audit report. The Board has asked us to prepare the comments below on its behalf for inclusion in your final report to the City. We are pleased with the results of your actuarial audit. For the City of Denton and the Fund Board of Trustees, the key statement in your preliminary report is this sentence of the cover letter: “GRS is pleased to report to the City and DFRRF that, in our professional opinion, the December 31, 2023 Actuarial Valuation prepared by the retained actuary provides a fair and reasonable assessment of the financial position of the Plan.” You made several recommendations in the Executive Summary, each of which is repeated below, with our response immediately following. Actuarial Experience Study “During the preparation of this actuarial audit, the retained actuary informed us that an actuarial experience study was planned for later this year. Had this not come to light, this would have been a primary recommendation. Thus, we recommend the retained actuary, the City, and the Fund carry out and complete this project as planned. More specifically, we recommend formal analyses of demographic assumptions, including but not limited to: retirement rates, termination rates, disability rates, individual salary increases, and mortality assumptions which include whether the more current Pub-2016 mortality tables and mortality improvement assumptions are more appropriate.” 60 Mr. Thomas J. Bevins Page 2 June 13, 2025 We completed the actuarial experience study project for the Fund on May 30. It included analysis of all the demographic assumptions recommended above. In addition, we recommended the PubS-2016 mortality tables and the most recent mortality improvement projection scale (MP-2021) for the December 31, 2025 actuarial valuation. Compensation Increases “When preparing the actuarial experience study, we recommend the retained actuary consider extending the number of years for which Merit, Promotion, and Longevity increases apply (if supported by the Plan’s experience).” In the actuarial experience study, we recommended assumed annual compensation increases for promotion, step, and longevity pay increases for the first 25 years of service. The prior assumption only assumed such increases for the first 15 years. Content of Valuation Report “Beyond the investment return scenarios on p. 3, we recommend the retained actuary expand its disclosures and risk metrics under the guidance of ASOP 51.” “We recommend providing a reference to the origin of assumptions, whether it be to a formal experience study, published table, or acquired from prior actuary.” “We recommend additional disclosures to the summary of Actuarial Methods and Assumptions (Exhibit 11) to include decrement timing and timing of individual salary increases.” We are planning to implement these recommended additions to the Fund’s biennial actuarial valuation reports beginning with the December 31, 2025 actuarial valuation. Please let us know if you have any questions about these responses. We appreciate the professional manner in which you have conducted this actuarial audit and your communications with Rudd and Wisdom. Sincerely, Mark R. Fenlaw, F.S.A. Rebecca B. Morris, A.S.A. MRF/RBM:nlg cc: Mr. Gerald Friend, Chairman, Fund Board of Trustees Ms. Jessica Williams, Chief Financial Officer, City of Denton i:\clients\fire\wd\2025\denton\audit-response.docx 61 June 27, 2025 Report No. 2025-056 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: City Council Member Committee Appointments EXECUTIVE SUMMARY: The appointment of City Council Members to internal Council Committees and to other internal and external committees and boards occurs during the summer after each municipal election. Internal Council Committees consist only of Denton City Council Members. City Council Members also can serve on other internal committees and boards that include participation of residents from the community. Finally, City Council Members may be appointed to external boards which operate on a regional level, generally incorporating members from the county, surrounding cities and towns, as well as members of the relevant business community and the residents for which the board was formed to serve. Council appointments to internal and external committees will be considered on the July 15, 2025, City Council agenda. DISCUSSION: City Secretary provided background on the various Council Committees, and internal and external committees and boards on which City Council Members participate and requested Council Members to provide feedback on which committees and boards they wished to serve in ISR 2025-053, issued on June 6, 2025. At the June 17, 2025, Work Session, staff sought direction regarding which nominations to bring forward for appointment on the July 15, 2025, City Council agenda. The following is the direction staff received regarding nominations at the Work Session: Council Committees: Committee on the Environment •3 seats open for appointment; 3 nominations •Nominations from Mayor Hudspeth:o Brian Beck o Joe Holland o Brandon Chase McGee •Note: The resolution for these nominations will be on the Consent Agenda. Community Partnership Committee •3 seats open for appointment; 2 definitive nominations •Current Members: o Vicki Byrd o Joe Holland o Jill Jester •Nominations: 62 June 27, 2025 Report No. 2025-056 o Vicki Byrd*o Joe Holland* •*Council Members Byrd and Holland also serve on the Discover Denton Advisory Boardand wish to continue this service upon their reappointment. •Jill Jester advised she would continue if needed but was interested in differentopportunities. •There were no additional nominations. •Note: The resolution for these nominations will be on the Individual Consideration Agenda. Internal Committees: Mobility Committee •0 seats open •Current Members with terms ending August 31, 2026: o Vicki ByrdoBrian BeckoJoe Holland •Upon further review of the establishing ordinance, 23-2465, the committee terms are set as for two (2) years, and as such, the current members remain in their positions on thiscommittee through August 31, 2026. Development Code Review Committee •3 seats open for appointment; 4 nominations •Current Members terms ending August 31, 2025:o Vicki ByrdoBrian Beck •Nominations: o Vicki ByrdoBrian BeckoJill Jester o Suzi Rumohr •Note: The resolution for these nominations will be on the Individual Consideration Agenda. Economic Development Partnership Board* •2 seats open for appointment; 3 nominations •Current Members:o Mayor Hudspeth (term ending 2025)o Vacant (term ending 2026) •Nominations: o Vicki ByrdoBrian BeckoJill Jester •Note: Appointments must identify the term-ending date for each nomination. •*Members must also serve on Tax Increment Reinvestment Zone 2 Board. 63 June 27, 2025 Report No. 2025-056 •Note: The resolution for these nominations will be on the Individual Consideration Agenda. Tax Increment Reinvestment Zone 1 Board •2 seats open for appointment; 2 nominations •Current Members: o Vicki Byrd o Brian Beck •Nominations:o Brian Beck o Joe Holland •Note: Council Member Byrd is not seeking renomination to this board; as such, theresolution for these nominations will be on the Consent Agenda External Committees: Dallas Regional Mobility Coalition •Current Member:o Mayor Hudspeth •Nominations: o Mayor HudspethoJill Jester – Alternate •Note: The resolution for these nominations will be on the Consent Agenda North Texas Commission •Current Members:o Mayor Hudspeth o City Manager (Proxy) •Nominations:o Mayor HudspethoCity Manager (Proxy) •Note: The resolution for these nominations will be on the Consent Agenda STAFF CONTACT: Lauren Thoden City Secretary lauren.thoden@cityofdenton.com (940) 349-8309 REQUESTOR: Council STAFF TIME TO COMPLETE REPORT: 1 hour PARTICIPATING DEPARTMENTS: City Secretary’s Office 64 FY 24/25 Council Requests Number of Requests Per Quarter Total Requests Made by Council Member Requests by Department Please Note: the total number of requests per council member or department may not match, as several council members and/ or departments may be associated with a single request. Council Requests 7 Number of Pending Requests by Council Member 65 Friday Report - Council RequestsSummary of RequestCouncil Member Requestor Date Received Staff AssignedDepartmentCommentsStatus1HOT Funds for UniversitiesCouncil Member Holland06/25/25Christine Taylor, Jessica WilliamsFinanceStaff investigating.2McCormick Street MeetingMayor Pro Tem Rumohr06/26/25Cassey OgdenCMOStaff updated the MPT.3Class CancellationCouncil Member Beck06/25/25Gary PackanParksStaff updated the residentand CM.4City JailMayor Hudspeth06/21/25Jessica RobledoPoliceStaff updated the Mayor.5Water leak / DamageMayor Hudspeth06/21/25Stephen GayWaterStaff updated the Mayor.6Potential park space near the old CalhounpropertyMayor Pro Tem Rumohr06/20/25Gary PackanParksStaff updated MPT.7North Lakes Driving RangeMayor Pro Tem Rumohr06/20/25Gary PackanParksStaff updated MPT.8Parking space at corner of S. Locust and E.HickoryCouncil Member Holland06/20/25Farhan ButtPublic Works-TrafficStaff updated CM.9Completion date for Aileen StreetCouncil Member Holland06/20/25Scott FetigCapital Projects/Engineering/Public Works Staff updated CM.10Carbon offsettingCouncil Member McGee06/19/25Antonio PuenteDMEStaff updated CM.11Road UpgradeCouncil Member Byrd06/17/25Cassey OgdenCMOStaff updated CM.12Water Cooler at Zera'sCouncil Member Beck06/16/25Jesse KentCommunity ServicesStaff updated CM.13Downtown TIRZ funds requirements Council Member Jester06/16/25Christine TaylorCMOStaff updated CM.14Business Park HomelessnessCouncil Member Holland06/14/25Jesse Kent, Jessica RobledoCommunity Services PoliceStaff updated CM.15HOT FundsCouncil Member Holland06/12/25Christine Taylor, Jessica WilliamsFinanceStaff updated CM.16Two Minute Pitch: Ad hoc Committee forHistoric City HallCouncil Member Holland06/11/25Frank DixonCMOWithdrawn by CM.17Street LightingCouncil Member Byrd06/03/25Antonio Puente, Farhan ButtDME Public Works-TrafficStaff updated CM.Page 1 of 1Exported on June 27, 2025 11:37:22 AM PDT66 Meeting Calendar City of Denton City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Criteria : Begin Date: 6/30/2025, End Date: 9/5/2025 Date Time Meeting LocationMeeting Body July 2025 7/3/2025 8:00 AM Agenda Committee Cancelled 7/7/2025 6:00 PM Parks, Recreation and Beautification Board Civic Center Community Room 7/9/2025 Animal Shelter Advisory Committee Animal Services Training Room 7/9/2025 10:00 AM Animal Shelter Advisory Committee Animal Services Training Room 7/10/2025 Health & Building Standards Commission Development Service Center 7/11/2025 Zoning Board of Adjustment Council Work Session Room 7/11/2025 12:00 PM Community Services Advisory Committee Development Service Center 7/14/2025 9:00 AM Public Utilities Board Council Work Session Room 7/14/2025 3:00 PM Development Code Review Committee Development Services Center 7/14/2025 5:30 PM Board of Ethics Council Work Session Room 7/14/2025 5:30 PM Historic Landmark Commission Development Service Center 7/14/2025 5:30 PM Library Board South Branch Library 7/15/2025 2:00 PM City Council Council Work Session Room & Council Chambers 7/17/2025 3:00 PM Committee on Persons with Disabilities Development Service Center 7/22/2025 2:00 PM City Council Council Work Session Room & Council Chambers 7/23/2025 12:00 PM Tax Increment Reinvestment Zone Number One Board Development Service Center 7/23/2025 5:00 PM Planning and Zoning Commission Council Work Session Room & Council Chambers 7/25/2025 9:00 AM Community Partnership Committee City Council Work Session Room 7/25/2025 1:00 PM Sustainability Framework Advisory Committee City Council Work Session Room 7/28/2025 9:00 AM Public Utilities Board Council Work Session Room 7/28/2025 5:30 PM Zoning Board of Adjustment Development Service Center Page 1City of Denton Printed on 6/26/202567 Date Time Meeting LocationMeeting Body Meeting Calendar continued... 7/30/2025 10:00 AM Mobility Committee Council Work Session Room August 2025 8/4/2025 6:00 PM Parks, Recreation and Beautification Board Civic Center Community Room 8/5/2025 2:00 PM City Council Council Work Session Room & Council Chambers 8/7/2025 8:00 AM Agenda Committee Council Work Session Room 8/7/2025 8:30 AM Downtown Economic Development Committee Development Service Center 8/7/2025 4:00 PM Public Art Committee Civic Center Community Room 8/8/2025 12:00 PM Community Services Advisory Committee Development Service Center 8/9/2025 8:00 AM City Council Council Work Session Room & Council Chambers 8/11/2025 9:00 AM Public Utilities Board Council Work Session Room 8/11/2025 3:00 PM Development Code Review Committee Development Services Center 8/11/2025 5:30 PM Board of Ethics Council Work Session Room 8/11/2025 5:30 PM Historic Landmark Commission Development Service Center 8/11/2025 5:30 PM Library Board Emily Fowler Central Library 8/13/2025 11:00 AM Economic Development Partnership Board Development Service Center 8/13/2025 3:00 PM Airport Advisory Board Airport Terminal Meeting Room 8/13/2025 5:00 PM Planning and Zoning Commission Council Work Session Room & Council Chambers 8/14/2025 3:00 PM Health & Building Standards Commission Development Service Center 8/19/2025 2:00 PM City Council Council Work Session Room & Council Chambers 8/22/2025 9:00 AM Community Partnership Committee City Council Work Session Room 8/25/2025 9:00 AM Public Utilities Board Council Work Session Room 8/25/2025 3:00 PM Development Code Review Committee Development Services Center 8/25/2025 5:30 PM Zoning Board of Adjustment Development Service Center 8/27/2025 10:00 AM Mobility Committee Council Work Session Room 8/27/2025 5:00 PM Planning and Zoning Commission Council Work Session Room & Council Chambers Page 2City of Denton Printed on 6/26/2025 68 Date Time Meeting LocationMeeting Body Meeting Calendar continued... September 2025 9/4/2025 8:00 AM Agenda Committee Council Work Session Room 9/5/2025 1:00 PM Bond Oversight Committee Development Service Center Page 3City of Denton Printed on 6/26/2025 69 Meeting Date Item Legistar ID Departments Involved Type Estimated Time A. Utility Budgets and Rates Fiscal Year 2025-2026 24-2618 Finance City Business 1:00 B. Climate Action Plan Update 25-421 Environmental Services City Business 0:45 C. Countywide Vote Centers 25-1177 City Manager's Office Council Request 0:30 D. Water and Wastewater Impact Fees 25-1139 Water City Business 0:45 E. Two Minute Pitch:25-029 City Manager's Office Council Request 0:30 Closed Meeting Item(s): Legal (if any)City Business 0:30 Total Est. Time: 4:00 Other Major Items for Meeting: A. Capital Improvement Program Fiscal Year 2025-2026 24-2617 Finance City Business 1:00 B. EV and Solar Ready Building Code TBD Development Services Council Request 0:30 C. Two Minute Pitch:25-030 City Manager's Office Council Request 0:30 Closed Meeting Item(s): Council Appointed Position Performance Reviews: City Manager and City Attorney Legal (if any)City Business 2:00 Total Est. Time: 4:00 Other Major Items for Meeting: A. Audit of Public Works Maintenance 25-338 Internal Audit City Business 0:30 B. Audit of Parks Management and Planning 25-340 Internal Audit City Business 0:30 C. East Hickory Street Parking 25-1059 City Manager's Office Council Request 0:30 D. Fair Chance Hiring Ordinance 25-1178 City Manager's Office Council Request 1:00 E. Two Minute Pitch:25-031 City Manager's Office Council Request 0:30 Closed Meeting Item(s): Council Appointed Position Performance Reviews: City Auditor and Municipal Judge Legal (if any)City Business 1:00 Total Est. Time: 4:00 Other Major Items for Meeting: A. 2025-26 City Manager’s Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast.24-2619 Finance City Business 4:00 Closed Meeting Item(s): Legal (if any)City Business 0:30 Total Est. Time: 4:30 Other Major Items for Meeting: A. DCTA Update TBD City Manager's Office City Business 0:45 B. Fiscal Year 2025-26 City Manager's Proposed Budget, Capital Improvement Program, and Five-Year Financial Forecast 24-2620 Finance City Business 1:00 C. Animal Services Audit Follow Up TBD Internal Audit City Business 0:30 D. Water Master Plan 25-363 Water City Business 0:45 E. Two Minute Pitch:25-032 City Manager's Office Council Request 0:30 Closed Meeting Item(s):Legal (if any)City Business 0:30 Total Est. Time: 4:00 Other Major Items for Meeting: A. Inclement Weather Policy TBD City Manager's Office City Business 1:00 B. Budget Update TBD Finance City Business 1:00 C. Audit Plan TBD City Auditor's Office City Business 0:30 D. Leak Adjustment Program TBD Customer Service/Water City Business 0:45 E. Two Minute Pitch:25-033 City Manager's Office Council Request 0:30 Closed Meeting Item(s): Legal (if any)City Business 0:30 Total Est. Time: 4:15 Other Major Items for Meeting: A. Budget Update TBD Finance City Business 1:00 B. Two Minute Pitch:25-034 City Manager's Office Council Request 0:30 Closed Meeting Item(s): Legal (if any)City Business 0:30 Total Est. Time: 2:00 Other Major Items for Meeting: A. Two Minute Pitch:25-035 City Manager's Office Council Request 0:30 Closed Meeting Item(s): Legal (if any)City Business 0:30 Total Est. Time: 1:00 Other Major Items for Meeting: A. Two Minute Pitch:25-036 City Manager's Office Council Request 0:30 Closed Meeting Item(s): Legal (if any)City Business 0:30 Total Est. Time: 1:00 Other Major Items for Meeting: Item Date Approved Department Next Step Requestor Board of Ethics develop guidance for interactions with external partners 6/18/2024 Internal Audit Work Session CM Beck Rooftop and wall gardens and solar panels on City buildings 12/3/2024 Facilities Management Agenda Committee CM Beck October 14 Work Session (@2:00 p.m.) Special Called Meeting (Upon conclusion of the Work Session) September 9 Work Session (@2:00 p.m.) Special Called Meeting (Upon conclusion of the Work Session) August 5 Work Session (@2:00 p.m.) Regular Called Meeting (6:30 p.m.) July 22 Work Session (@2:00 p.m.) Special Called Meeting (Upon Conclusion of the Work Session) July 15 Work Session (@2:00 p.m.) Regular Called Meeting (@6:30 p.m.) August 9 Saturday Budget Workshop (9:00 a.m.) Tentative Work Session Topics and Meeting Information Updated: June 27, 2025 August 19 Work Session (@2:00 p.m.) Regular Called Meeting (6:30 p.m.) September 16 Work Session (@2:00 p.m.) Regular Called Meeting (@6:30 p.m.) September 30 Work Session (@2:00 p.m.) Special Called Meeting (Upon conclusion of the Work Session) Approved Council Pitches to be Scheduled Council Priorities and Significant Work Plan Items to be Scheduled *This is for planning purposes only. Dates are subject to change.70 1 Street Closure Report: Upcoming ClosuresSCR June 30th - July 6thStreet/ IntersectionFromToClosure StartDateClosure EndDateDescriptionDepartmentDepartment Contact Closure Type1Apollo DrRedstone RdSelene Dr07/24/25 02/13/26 Utility installations and pavement replacement. EngineeringScott FettigFull Closure2Bonnie Brae StConquest DrWindsor Dr07/07/25 07/21/25 Removing dirt along existing back of curb andremoving existing large trees along the back ofcurb in the same area. Contractor will also tie-innew 16-inch waterline to existing 16-inchwaterline.EngineeringJesus PerezLane Closure3Brookside Dr (5700)Trailridge DrAt Intersection07/21/25 08/15/25 Sidewalk RepairStreetsRoy San MiguelLane Closure4Sunnydale LnSun Valley DrKings Row07/10/25 12/05/25 Utility installations and pavement replacement. EngineeringScott FettigFull ClosureExported on June 27, 2025 11:35:09 AM CDT71 2 Street Closure Report: Current ClosuresStreet/ IntersectionFromToClosure StartDateClosure EndDateDescriptionDepartmentDepartment Contact Closure Type1Aileen StPanhandle StBroadway St09/27/24 08/16/25 Utility installations andpavement replacement.EngineeringScott FettigFull Closure2Airport Rd (FM 1515)I35 E Frontage RdAirport / I35W Frontage Rd 07/07/25 07/14/25 Construction of the newalignment of Bonnie Braeconnecting to Airport Road/FM1515EngineeringRobin DavisFull Closure3Alice StSunset StUniversity Dr (US 380)05/27/25 08/01/25 Utility installations andpavement replacement.EngineeringScott FettigRolling Closure4Alice StPanhandle StCrescent St05/02/25 12/05/25 Utility installations andpavement replacement.EngineeringMegan DavidsonFull Closure5Ave ACollins StEagle Dr10/08/24 06/30/25 Utility installations andpavement replacement.EngineeringScott FettigFull Closure6Ave AEagle DrHighland St02/03/25 07/01/25 Utility installations andpavement replacement.EngineeringScott FettigRolling Closure7Ave BFannin StMargie St11/22/24 07/31/25 Pavement replacement EngineeringScott FettigFull Closure8Ave DChestnut StMulberry St05/12/25 08/15/25 Utility installations andpavement replacement.EngineeringMegan DavidsonFull Closure9Ave GPrairie StLousie St03/13/25 07/25/25 Utility installations andpavement replacementEngineeringMegan DavidsonFull Closure10Bonnie Brae StAirport Rd (FM 1515)Walt Parker Dr (Main Stadium Dr) 01/06/25 07/14/25 Utility installations andpavement replacement.EngineeringRobin DavisFull Closure11Bonnie Brae St SWillowwood StParvin St06/23/25 10/24/25 Installation of drainageinfrastructure, embankmentwork in advance of streetwidening. (Access to NatlWholesale & residents only)EngineeringRobin DavisFull Closure12Cactus CirYucca Dr(End of street) Cul de sac04/28/25 09/02/25 Utilities and PavementreplacementEngineeringDante HaleFull Closure13Chestnut StAve CAve D05/12/25 08/15/25 Utility installations andpavement replacement.EngineeringMegan DavidsonFull Closure14Clover LnRobinwood LnGlenwood Ln11/12/24 07/12/25 Full Road Reconstruction EngineeringSheldon GatewoodFull Closure15Congress StPonder StCarroll Blvd03/31/25 07/04/25 Utility constructionEngineeringMegan DavidsonRolling Closure16Congress StPonder StCoit St02/03/25 09/30/25 Utility installations andpavement replacement.EngineeringScott FettigFull Closure17Cordell StCoit StFulton St06/30/25 09/26/25 Full road reconstruction EngineeringMegan DavidsonFull Closure18Crescent StAileen StMalone St05/21/25 07/21/25 Utility installations andpavement replacement.EngineeringMegan DavidsonFull Closure19Crescent StCarroll BlvdBolivar St01/24/25 08/01/25 Utility installations andpavement replacement.EngineeringScott FettigFull Closure20Crescent StAileen StMalone St06/16/25 09/05/25 Utility installations andpavement replacement.EngineeringMegan DavidsonFull Closure21Denton StHickory StCongress St06/02/25 11/05/25 Utility installations andpavement replacementEngineeringMegan DavidsonFull Closure22Eagle DrAve CAve A03/17/25 08/29/25 Using it or an entrance due toelevation changes in the jobsiteit is the only way to get into thesitePublic Works Inspections Collin ColeLane Closure23Ector StCordell StUniversity Dr (US380)06/30/25 07/30/25 Sewer Line Being installed,Manholes, pipe, pavingPublic Works Inspections Collin ColeFull Closure24Egan StCarroll BlvdBolivar St05/07/25 09/10/25 Utility installations andpavement replacement.EngineeringMegan DavidsonFull Closure25Emery StAlice StDead End (West of Fulton)02/03/25 08/01/25 Utility installations andpavement replacement.EngineeringScott FettigFull Closure26Fry StOak StHickory St04/28/25 07/11/25 Mastec relocating gas lines Public Works Inspections Stephany TrammellRolling Closure27Fulton StCordell StEmery St02/03/25 08/01/25 Utility installations andpavement replacement.EngineeringScott FettigFull Closure28Hickory Creek RdRiverpass DrCountry Club Rd (FM 1830) 03/13/23 12/31/26 Bridge InstallationEngineeringTracy BeckFull Closure29Hilltop Rdat Country Club Road (FM 1830)05/27/25 09/30/25 Hilltop Road at Country ClubRoad will be reconstructed (newdrainage, road, etc.) and newnorthbound right turn lane willbe added to Country Club RoadEngineeringTracy BeckFull Closure30Hobson LnForrestridge DrCountry Club Rd05/08/25 07/01/25 Utility work and turn laneconstruction on HobsonPublic Works Inspections Gavin PetnerFull Closure Exported on June 27, 2025 11:35:17 AM CDT72 Street/ IntersectionFromToClosure StartDateClosure EndDateDescriptionDepartmentDepartment Contact Closure Type31Huisache StAspen DrYucca Dr04/09/25 08/08/25 Utilities and PavementreplacementEngineeringDante HaleRolling Closure32Jim Christal RdMasch Branch Rd@ Intersection03/07/25 07/11/25 Adding 2 Lanes E/W on JimChristal: Adding a turn Lane onMasch BranchPublic Works Inspections Kirk WinterLane Closure33Juno LnAtlas DrStuart Dr04/09/25 08/08/25 Utility installations andpavement replacement.EngineeringScott FettigRolling Closure34La Mirada (1500)Manten BlvdZilda Way06/09/25 07/04/25 Concrete Panel Repair StreetsRoy San MiguelLane Closure35Margie StAve AAve B11/01/24 06/30/25 Utility installations andpavement replacement.EngineeringScott FettigFull Closure36Mistywood LnRobinwood LnGlenwood Ln04/28/25 07/12/25 Voids undergroundOtherSheldon GatewoodFull Closure37Mockingbird LnMingo RdUniversity Dr (U.S. 380)06/16/25 07/18/25 Bore work to install newsanitary sewer line.Private DevelopmentZabdiel MotaLane Closure38Mounts AveCongress St WHaynes St03/21/25 07/25/25 Utility installations andpavement replacementEngineeringMegan DavidsonFull Closure39Mulberry StElm StCarroll Blvd03/17/25 07/11/25 Water/Wastewater connections Public Works Inspections Stephany TrammellFull Closure40Mulberry StWelch StBernard St11/29/24 08/01/25 Utility installations andpavement replacement.EngineeringScott FettigFull Closure41Normal StOak StScripture St05/08/25 09/05/25 Utility installations andpavement replacement.EngineeringMegan Davidson42Northridge StHinkle DrBolivar St04/16/25 04/20/26 Utilities and PavementreplacementEngineeringDante HaleRolling Closure43Oak StCarroll BlvdFry St04/21/25 07/11/25 Mastec relocating gas lines Public Works Inspections Stephany TrammellRolling Closure44Oak StWelch StAve C04/28/25 07/11/25 Mastec relocating gas lines Public Works Inspections Stephany TrammellRolling Closure45Oak St E (109)Austin Stat Intersection05/19/25 07/04/25 ADA / Sidewalk Work atIntersectionStreetsRoy San MiguelLane Closure46Ocean DrAtlantic DrNautical Ln04/14/25 07/15/25 Sanitary Sewer installPrivate DevelopmentGavin PetnerFull Closure47Pershing DrAtlas DrStuart Rd05/08/25 12/15/25 Utilities and PavementreplacementEngineeringDante HaleFull Closure48Ponder AveOak St WBroadway St06/02/25 12/31/25 Utility installations andpavement replacement.EngineeringScott FettigRolling Closure49Ponder StOak StPanhandle St06/19/25 04/27/26 Utility installations andpavement replacementEngineeringMegan DavidsonFull Closure50Prairie StWelch StBernard St03/13/25 07/25/25 Utility installationsEngineeringMegan DavidsonFull Closure51Precision DrAirport RdUNT Library Annex04/01/25 07/31/25 ReconstructionEngineering OtherGio PineiroFull Closure52Redstone RdHercules LnNeptune Dr05/05/25 06/12/26 Utilities and PavementreplacementEngineeringDante HaleFull Closure53Riney RdBonnie Brae StHardaway Rd03/08/25 08/01/25 Contractor to install 12-inchwaterline to provide water to thenew DISD elementary schoolEngineeringJesus PerezFull Closure54Robinwood LnEmerson LnLive Oak St11/12/24 07/12/25 Full Road Reconstruction EngineeringSheldon GatewoodFull Closure55Robinwood LnLive OakKayewood Dr01/27/25 07/31/25 Road reconstruction (Millingand C/G Removal, Stabilization)EngineeringSheldon GatewoodFull Closure56Scripture StJagoe StPonder St03/04/25 10/17/25 Utility installations andpavement replacement.EngineeringScott FettigFull Closure57Selene DrNeptune DrStuart Rd06/04/25 11/28/25EngineeringScott FettigFull Closure58Seven Oaks Ln (7912)Clear River Ln@ Intersection06/23/25 07/18/25 Sidewalk RepairStreetsRoy San MiguelLane Closure59Stuart RdHercules LnKings Row06/09/25 07/18/25 Offsite utility work for Landmarkat Locust projectPublic Works Inspections Alexander CervantesLane Closure60Sun Valley DrStuart RdAtlas Dr06/09/25 07/18/25 Offsite utility work for Landmarkat Locust projectPublic Works Inspections Alexander CervantesFull Closure61Sunset StUniversity Dr WAnna St01/20/25 08/31/25 Utility installations andpavement replacement.EngineeringScott FettigFull Closure62Trinity Rd SMcKinney St EMary Ln06/09/25 08/29/25 Force Main Waterline beinginstalled, staging area and lineinstall. Road closed to throughtrafficPublic Works Inspections Collin ColeFull Closure63Unicorn Lake BlvdState School RdWind River Ln03/25/25 06/30/25 Sanitary sewer workPrivate DevelopmentGavin PetnerLane Closure64Union Cir (in entirety)Chestnut StPrairie St05/12/25 10/01/25 Utility installations andpavement replacement.EngineeringMegan DavidsonFull Closure65Welch StChestnut StMulberry St02/03/25 07/01/25 Utility installations andpavement replacement.EngineeringScott FettigFull Closure Exported on June 27, 2025 11:35:17 AM CDT73 Street/ IntersectionFromToClosure StartDateClosure EndDateDescriptionDepartmentDepartment Contact Closure Type66Welch StEagle DrHighland St03/13/25 07/04/25 Utility installations andpavement replacementEngineeringMegan DavidsonFull Closure67Welch StHighland StHickory St08/26/24 07/31/25 Utility installations andpavement replacement.EngineeringScott FettigRolling Closure68Welch StEagle DrHickory St06/03/24 10/01/25 Utility installations andpavement replacement.EngineeringScott FettigFull Closure69Welch StSycamore StMulberry St06/30/25 10/06/25 Full road reconstruction EngineeringMegan DavidsonFull Closure70Westway StAnna StBolivar St01/24/25 07/31/25 Utility installations andpavement replacement.EngineeringScott FettigFull Closure71Yellowstone PlHercules LnJuno Ln06/30/25 09/01/25 Utilities and PavementreplacementEngineeringDante HaleFull Closure Exported on June 27, 2025 11:35:17 AM CDT74 3 Street Closure Report: Completed ClosuresStreet/ IntersectionFromToClosure StartDateClosure EndDateDescriptionDepartmentDepartment Contact Closure Type1Bell AveUniversity Dr (Hwy 380) Texas St05/12/25 06/03/25 Waterline tap and newinstallationAtmos DrainageEngineering PrivateDevelopment Public WorksInspections Streets TrafficTXDoT Water WastewaterChristopher YanezFull Closure2Bell Ave N (1000)Chappel DrTexas St05/12/25 06/03/25 Waterline tap and newinstallationWaterChristopher YanezFull Closure3Bernard StLindsey StFannin St08/26/24 06/20/25 Utility installations andpavement replacement.EngineeringScott FettigRolling Closure4Camelot StHercules LnStuart Rd04/28/25 06/27/25 Utilities and PavementreplacementEngineeringDante HaleRolling Closure5Collins StAve ABernard St08/26/24 06/20/25 Utility installations andpavement replacement.EngineeringScott FettigFull Closure6Cornell LnUniversity Dr WAmherst Dr06/02/25 06/12/25 Water TapsPublic Works Inspections Alexander CervantesLane Closure7Granada TrailGranada TrailSeville Rd06/16/25 06/27/25 installing sewer pipeWastewaterJohn, CantuLane Closure8Morse StLoop 288Mayhill Rd12/02/24 06/20/25 Water Line Replacement andRoad ReconstructionPublic Works InspectionsStreets WaterKristine StewartLane Closure9North Bell AveUS 380Administration06/12/25 06/13/25 Atmos Main RepairAtmosSheldon GatewoodLane Closure10Panhandle StEctor StAileen St09/27/24 05/30/25 Utility installations andpavement replacement.EngineeringScott FettigFull Closure11Parvin St@ Bonnie Brae St06/09/25 06/11/25 Installation of storm draininfrastructure crossing Parvin -(No access to Bonnie Brae fromParvin)EngineeringRobin DavisFull Closure12Robson Ranch RdFrontage Rd (SB)Briarwood Rd06/20/25 06/24/25 Grading of new right turn lanes Private Development PublicWorks Inspections OtherGary HatfieldLane Closure13Tawakoni Dr (5908) Amistad Lnat Intersection05/19/25 06/27/25 ADA Ramp RepairStreetsRoy San MiguelLane Closure14Trinity RdMcKinney StBlagg Rd05/05/25 06/06/25 Utilities and PavementreplacementEngineeringDante HaleFull Closure15Willowwood StWestwood DrLeslie St03/10/25 06/27/25 Sanitary sewer, water andstorm sewer installPrivate DevelopmentGavin PetnerLane Closure Exported on June 27, 2025 11:36:51 AM CDT75