2017-088 2016-17 4th Quarter Financial ReportDate: December 15, 2017 Report No. 2017-088
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Quarterly Financial Report for the period ending September 30, 2017
BACKGROUND:
Attached for your review is the Quarterly Financial Report for the period ending September 30,
2017. If you have any questions or need additional information, please let me know.
ATTACHMENTS:
Quarterly Financial Report as of September 30, 2017
STAFF CONTACT:
Chuck Springer, Director of Finance
(940) 349-8260
Charles.Springer@cityofdenton.com
About This Quarterly Financial
Report
This report has been prepared by the City of Denton’s Finance
Department. The Quarterly Financial Report is intended to provide
our users (internal and external) with information regarding the City’s
financial position and economic activity. This report includes
information for the quarter ending September 30, 2017.
This report is presented in six sections.
1. The Executive Dashboard section contains a high level
summary of the major operating funds using graphic
illustrations and key economic indicators. Narrative disclosures
are also included to highlight any significant changes or
fluctuations.
2. The Financial Summary section reports the performance of the
major operating funds of the City. In addition, the report
provides an end of year projection and a comparison to the
budget for major revenue sources and expenditure items.
3. The Revenue & Economic Analysis section provides additional
analysis regarding key revenue sources and economic
indicators.
4. The Quarterly Investment Report provides a summary of the
City’s investment portfolio, interest earnings and a brief market
outlook.
5. The Performance Report provides Key Performance Indicators
(KPIs) for each of the goals identified in the City’s strategic
plan. In addition, the progress on Key Action Steps are
highlighted.
6. The G.O. Bond Program Report provides updates of each of
the Bond Propositions from the 2012 and 2014 bond elections.
The Quarterly Financial Report is intended to provide our users with
timely and relevant information. Please provide us with any
comments or suggestions you may have. If you would like additional
information, feel free to contact me.
Chuck Springer
Director of Finance
215 East McKinney Street
Denton, TX 76201
940-349-8260
Section 1
City of Denton
Quarterly Financial Report
September 2017
Executive Dashboards
Note:Allfigurespresentedareinmillionsofdollars.FY 2016-17 FY 2016-17ANNUAL PRELIMINARY FY 2016-17DESCRIPTION BUDGET 1ACTUALS VARIANCEBeginning Fund Balance as of 09/30/16 27.37$ 28.17$ RESOURCES: Ad Valorem Taxes 43.15 43.72 1% Sales Tax 32.84 36.84 12% Franchise Fees 5.61 5.61 0% Other Taxes 0.35 0.48 37% Service Fees 7.93 7.66 -3% Fines and Fees 4.11 3.64 -11% Licenses and Permits 2.96 3.03 2% Miscellaneous Revenue 1.58 1.97 25% Transfers In 15.80 15.57 -1%Total Revenues 114.33 118.52 4%Total Resources 141.70 146.69 EXPENDITURES : Personal Service 81.76 79.36 -3% Material and Supplies 2.73 2.47 -10% Maintenance and Repairs 2.99 2.85 -5% Insurance 1.08 0.35 -68% Miscellaneous 1.19 1.07 -10% Operations 13.87 14.08 2% Transfers Out 14.84 14.67 -1% Fixed Assets 0.55 0.58 5%Total Expenditures 119.01 115.43 -3%Net Income (Loss) (4.68) 3.09 Ending Fund Balance 22.69$ 31.26$ City of Denton, Texas General Fund Executive Dashboard$Ͳ$20$40$60$80$100$120$140Revenue & Expenses (in Millions)YTDRevenueYTDExpensesKeyTrends¾SalesTaxrevenuesare$4.00Mhigherthanbudgetduetostrongercollectionsinretailactivities.¾FinesandFeesrevenuesare$0.47Mlowerthanbudgetmainlyduetomunicipalfines.¾MiscellaneousRevenuesare$0.39MhigherthanbudgetmainlyduetoacloseoutofunusedPayFlex balances.¾PersonalServiceexpendituresare$2.40MlowerthanbudgetduetopositionvacanciesandsavingsfromreducedpaymentstotheHealthInsurancefund.¾Insuranceexpendituresare$0.73MlowerthanbudgetduetoadecreaseinpaymentstoRiskManagement.$Ͳ$0.5$1.0$1.5$2.0$2.5$3.0$3.5Sales Tax Monthly Average by Quarter1Annualadoptedbudgetplusadditionalexpenditurebudgetamendmentsof$375,000on5/9/17and$4,205,173on9/19/17withnocorrespondingincreaseintherevenuebudget.Originaladoptedbudgetassumedadrawdownof$99,365.BeginningFundBalancerepresentstheamountwhichwasestimatedintheFY2016Ͳ17budgetprocess.
Note:Allfigurespresentedareinmillionsofdollars.City of Denton, Texas Electric Fund Executive DashboardDESCRIPTIONFY 2016-17 ANNUAL BUDGET 1FY 2016-17 PRELIMINARY ACTUALS FY 2016-17 VARIANCEBeginning Working Capital and Reserves as of 9/30/16 68.18$ 76.00$ RESOURCES: Operating Revenues 176.68 171.88 -3% Non-operating Revenues 0.30 0.76 152%Total Revenues 176.98 172.64 -2%Total Re sou rce s 245.16 248.63 EXPENDITURES : Purchased Power 98.37 93.06 -5% Operation and Maintenance 44.37 34.74 -22% Non-Operating Expenditures 43.67 42.32 -3%Total Expenditures 186.41 170.12 -9%Net Income (Loss) (9.43) 2.52 En di n g W ork i n g C api tal and Reserves 58.75$ 78.51$ $0$20$40$60$80$100$120$140$160$180$200Revenue&Expenses(inMillions)YTDRevenueYTDExpenseKeyTrends¾OperatingRevenuesare$4.8millionlessthanbudget.RateRevenueis$9.9millionlessthanbudgetduetoamildsummerwhichresultedinlowerkWhsalesinthe4thQuarter.TransmissionCostofService(TCOS)is$5.1millionmorethanbudget.¾NonͲoperatingRevenuesarehigherthanbudgetasaresultofhigherinterestincomethananticipated.¾PurchasedPoweris$5.3millionlessthanbudgetduetoamildsummerandtheabilityoftheEMOtopurchasepowerbelowmarketpricesfromthetimethebudgetwasset.¾OperationandMaintenancecostsare$9.6millionlowerthanbudgetduetolowerthananticipatedcostsforpersonnelservices,licenses,professionalservices,outsideservices,travelandadvertising.0501001502002503003504004505001Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 1Q17 3Q172012– 2017HistoricalQuarterlyGWHSales1Annualadoptedbudgetasamendedormodified.BeginningFundBalancerepresentstheamountwhichwasestimatedintheFY2016Ͳ17budgetprocess.
Note:Allfigurespresentedareinmillionsofdollars.FY 2016-17 FY 2016-17ANNUAL PRELIMINARY FY 2016-17DESCRIPTIONBUDGET 1ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/16225.60$ 24.15$ RESOURCES: Water Sales 37.34 34.52 -8% Other Water Revenues 0.94 1.59 69% Transfers In 6.50 5.48 -16% Impact Fee Revenue 4.00 4.00 0%Total Revenues 48.78 45.59 -7%Total Resources 74.38 69.74 EXPENDITURES: Personal Service 11.55 9.59 -17% Operations, Services 11.84 9.42 -20% Capital Outlay313.26 12.90 -3% Debt Service 11.54 11.20 -3% Transfers Out 3.59 3.61 1%Total Expenditures 51.78 46.72 -10%Net Income (Loss) (3.00) (1.13) Ending Working Capital and Reserves 22.60$ 23.02$ 05001,0001,5002,0002,5003Q121Q133Q131Q143Q141Q153Q151Q163Q161Q173Q172012Ͳ2017HistoricalQuarterlyGallonsSold(inMillions)City of Denton, Texas Water Fund Executive Dashboard$Ͳ$5$10$15$20$25$30$35$40$45$50Revenue&Expenses(inMillions)YTDRevenueYTDExpensesKeyTrends¾OtherWaterRevenueisoverbudgetduetoTappingFeeandAidͲinͲConstructionrevenue.¾TransferInrevenueisunderbudgetduetoyearͲendrevisionstotheCustomerServiceandUtilityAdministrationcharges.¾PersonalServiceexpendituresareunderbudgetduetopositionvacancies.¾Operations,Servicesareunderbudgetduetoreducedmaterials&suppliesandoutsideservicesexpenses.1Annualadoptedbudgetasamendedormodified.BeginningFundBalancerepresentstheamountwhichwasestimatedintheFY2016Ͳ17budgetprocess.2TheBeginningWorkingCapitalbalanceexcludes$5.6MofImpactFeeReserves.3IncludesoneͲtimetransferof$3.0milliontoCapitalProjectsusingdollarsrelatedtotherefundingoftheUtilityRevenueBondsinFY2016andthereleaseoftherelatedreservefunds.
FY 2016-17 FY 2016-17ANNUAL PRELIMINARY FY 2016-17DESCRIPTIONBUDGET 1ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/16218.08$ 18.11$ RESOURCES: Wastewater Fees 23.42 24.60 5% Other Wastewater Revenue 1.88 2.06 10% Drainage Fees 4.60 4.65 1% Transfer In 0.88 0.92 5% Impact Fee Revenue 3.52 3.52 0%Total Revenues 34.30 35.75 4%Total Resources 52.38 53.86 EXPENDITURES: Personal Service 8.24 7.28 -12% Operations, Services 8.73 7.42 -15% Capital Outlay311.22 11.21 0% Debt Service 6.91 6.81 -1% Transfer Out 3.50 3.23 -8%Total Expenditures 38.60 35.95 -7%Net Income (Loss) (4.30) (0.20) Ending Working Capital and Reserves 13.78$ 17.91$ Note:Allfigurespresentedareinmillionsofdollars. ,0001,2003Q121Q133Q131Q143Q141Q153Q151Q163Q161Q173Q172012Ͳ2017HistoricalQuarterlyGallonsBilled(inMillions)City of Denton, Texas Wastewater Fund Executive Dashboard$Ͳ$5$10$15$20$25$30$35$40Revenue&Expenses(inMillions)YTDRevenueYTDExpensesKeyTrends¾PersonalServiceexpendituresareunderbudgetduetopositionvacancies.¾Operations,ServicesareunderbudgetduetolowerMaterials&SuppliesandMaintenance&Repaircosts.1Annualadoptedbudgetasamendedormodified.BeginningFundBalancerepresentstheamountwhichwasestimatedintheFY2016Ͳ17budgetprocess.2TheBeginningWorkingCapitalbalanceexcludes$3.3millionofImpactFeeReserves,$1.0millionforDrainageReserves,and$0.1millionforDevelopmentPlanLineReserves.3IncludesoneͲtimetransferof$4.3milliontoCapitalProjectsusingdollarsrelatedtotherefundingoftheUtilityRevenueBondsinFY2016andthereleaseoftherelatedreservefunds.
FY 2016-17 FY 2016-17ANNUAL PRELIMINARY FY 2016-17DESCRIPTION BUDGET ACTUALS VARIANCEREVENUES: Residential Drainage Fees 1.70$ 1.76$ 4% Nonresidential Drainage Fees 2.90 2.88 -1% Wastewater Resources 0.02 0.02 0% General Fund Transfer 0.50 0.50 0%Total Revenues 5.12 5.16 1%EXPENDITURES: Personal Service 1.86 1.45 -22% Operations, Services 0.86 0.49 -43% Capital Outlay 1.13 1.95 73% Debt Service 0.64 0.64 0% Transfer Out 0.63 0.63 0%Total Expenditures 5.12 5.16 1%Net Income (Loss) -$ -$ Note:Allfigurespresentedareinmillionsofdollars.City of Denton, Texas Drainage Operations Executive Dashboard$Ͳ$1.0$2.0$3.0$4.0$5.0$6.0Revenue&Expenses(inMillions)YTDRevenueYTDExpensesKeyTrends¾PersonalServicesareunderbudgetduetopositionvacancies.¾Operations,ServicesareunderbudgetduetoreducedProfessionalServicesandvehicleexpenses.¾CapitalOutlayishigherthanbudgetduetosavingsinotherexpensesandfundingofprojects.
FY 2016-17 FY 2016-17ANNUAL PRELIMINARY FY 2016-17DESCRIPTION BUDGET 1ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/1626.04$ 7.76$ RESOURCES: Collection & Disposal 34.22 32.44 -5% Recycling 0.85 0.87 2% Other Revenue 1.78 0.85 -52%Total Revenues 36.85 34.16 -7%Total Resources 42.89 41.92 EXPENDITURES: Personal Service 11.40 10.42 -9% Operations, Services 11.40 9.98 -12% Capital Outlay 3.17 1.91 -40% Debt Service 8.14 8.06 -1% Transfer Out 2.70 2.58 -4%Total Expenditures 36.81 32.95 -10%Net Income (Loss) 0.04 1.21 Ending Working Capital and Reserves 6.08$ 8.97$ 01,0002,0003,0004,0005,0006,0007,0002016Qtr12016Qtr22016Qtr32016Qtr42017Qtr12017Qtr22017Qtr32017Qtr4RefuseTonnageRecyclingTonnagesResidential CurbsideCollection TonnageNote:Allfigurespresentedareinmillionsofdollars.City of Denton, Texas Solid Waste Fund Executive DashboardKeyTrends¾Collection&Disposalrevenueisunderbudgetbecauseminingoperationswerediscontinued.¾OtherRevenueisunderbudgetduetoacancellationoftransfersfromtheLandfillClosure/PostClosureFund.¾PersonalServicesareunderbudgetduetopositionvacancies.¾Operations,Servicesisunderbudgetduetofuelcostsavings.¾CapitalOutlayisunderbudgetduetospendingcontrolandgrantfundsreceivedforprojects.05,00010,00015,00020,00025,00030,0002016Qtr12016Qtr22016Qtr32016Qtr42017Qtr12017Qtr22017Qtr32017Qtr4CommercialRefuse&Recycling(Front&SideLoad)CubicYardsServicedperWeekCommercialRefuseCommercialRecycling1Annualadoptedbudgetasamendedormodified.BeginningFundBalancerepresentstheamountwhichwasestimatedintheFY2016Ͳ17budgetprocess.2TheBeginningWorkingCapitalReserveexcludes$7.38millionofLandfillClosure/PostClosurereserves.
City of Denton, Texas Airport Fund Executive DashboardKeyTrends¾Airport Ground Leases are less than budget due to the delayed opening of new hangar space.¾FBO Commissions are less than budget due to lower fuel sales.¾Personal service expenditures are less than budget due to reorganization and the timing of position vacancies.¾Operations, Services are less than budget because of less than expected spending on outside services, maintenance and supplies.¾Debt Service balances were moved to the general government in FY 2016-17 with the related debt service expenditures being paid from the Debt Service Fund.$0.0$1.0$2.0$3.0$4.0$5. 2015 2016 2017GAS WELLREVENUE(in millions of dollars by fiscal year) 20,000 30,000 40,000 50,000 60,000AIRPORT OPERATIONS BY QUARTER(takeoff or landing)Note: All financial amounts presented are in millions of dollars.FY 2016-17 FY 2016-17ANNUAL PRELIMINARY FY 2016-17DESCRIPTION BUDGET 1ACTUALS VARIANCEBeginning Working Capital and Reserves as of 09/30/16 2.45$ 2.48$ RESOURCES: Airport Ground Leases 0.70 0.58 -17% FBO Commissions 0.24 0.21 -13% Miscellaneous 0.06 0.10 67%Total Operating Revenues 1.00 0.89 -11%EXPENDITURES: Personal Service 0.67 0.52 -22% Operations, Services 0.41 0.28 -32% Transfer Out 0.47 0.47 0%Total Operating Expenditures 1.55 1.27 -18%Net Operating Income (Loss) (0.55) (0.38) NON-OPERATING REVENUES: Investment Income 0.03 0.04 33% Gas Well Royalties 0.45 0.61 36%Total Non-Operating Revenues 0.48 0.65 35%NON-OPERATING EXPENDITURES: Debt Service - - 0%Total Non-Operating Expenditures - - 0%Net Non-Operating Income (Loss) 0.48 0.65 Net Income (Loss) (0.07) 0.27 Ending Working Capital and Reserves 2.38$ 2.75$ 1Annualadoptedbudgetasamendedormodified.BeginningWorkingCapitalandReservesrepresentstheamountwhichwasestimatedintheFY2016Ͳ17budgetprocess.
FY 2016-17 FY 2016-17ANNUAL PRELIMINARY FY 2016-17DESCRIPTION BUDGET 1ACTUALS VARIANCEBeginning Fund Balanceas of 09/30/2016 1.52$ 1.80$ RESOURCES: Franchise Fees 11.61 10.68 -8% Street Cuts 0.35 0.24 -31% Intergovernmental - 0.20 0% Investment Income 0.01 0.01 0% Transfers In 1.00 1.02 2% Miscellaneous - 0.08 0%Total Re ve n u e s 12.97 12.23 -6%Total Resources 14.49 14.03 EXPENDITURES: Personal Service 3.64 2.95 -19% Materials & Supplies 0.08 0.11 38% Maintenance & Repairs 7.95 8.60 8% Operations, Services 0.69 0.76 10% Transfer Out 0.96 0.80 -17% Fixes Assets - 0.10 0%Total Expe n di tu re s 13.32 13.32 0%Net Income (Loss) (0.35) (1.09) Ending Fund Balance 1.17$ 0.71$ 1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2016-17 budget process.City of Denton, Texas Street Improvement Fund Executive DashboardKeyTrends¾Streetcutsareunderbudgetduetolowerutilitycutrepairs .¾PersonalServicesareunderbudgetduetopositionvacancies.¾Materials&SuppliesarehigherthanbudgetduetotheRidgecrestandEmersonprojects.¾TonsofAsphaltLaiddecreasedinthe4thquarterascomparedtolastyearduetofocusonotherprojects.YearendtotalsforFY16Ͳ17exceededFY15Ͳ16.Note:Allfigurespresentedareinmillionsofdollars. $- $3.5 $7.0 $10.5 $14.0Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17Revenue & Expenses (in Millions)YTD RevenueYTD Expenses0481216Qtr1 Qtr2 Qtr3 Qtr4Tons of Asphalt Laid (in Thousands)FY15-16FY16-1701020304050Qtr 1 Qtr 2 Qtr 3 Qtr 4Lane Miles Surface TreatmentFY 15-16FY 16-17
FY 2016-17 FY 2016-17GRANT PRELIMINARY FY 2016-17DESCRIPTION AMOUNT ACTUALS VARIANCE2016-17 Budget Comm Development 2.14$ 0.98$ -54% Public Safety 0.37 0.22 -41% Parks & Recreation 1.51 0.99 -34% Airport 6.00 0.73 -88% Solid Waste 0.95 0.35 -63% Transportation 0.16 0.16 0% Other 0.03 0.02 -20%Total Budget 11.16 3.45 -69%New Awards Comm Development 0.13 0.12 -8% Public Safety 0.20 0.20 0% Solid Waste 0.24 0.24 0% Transportation 98.24 5.60 -94% Other 1.55 1.55 0%Total New Awards 100.36 7.71 -92%Totals 111.52$ 11.16$ -90%COMMDEV2%PUBLICSAFETY1%PARKS&REC1%AIRPORT6%SOLIDWASTE1%TRANS88%OTHER1%FY2016Ͳ17GrantsAwarded$Ͳ$20.0$40.0$60.0$80.0$100.0$120.0COMMDEVPUBLICSAFETYPARKS&RECAIRPORTSOLIDWASTEOTHERTRANSMillionsAwardsExpensesFY2016Ͳ17Awards&Expenses(inMillions)KeyTrendsThe following grants have been received in FY 2016-17: ¾Community Development -Emergency Solutions Grant: $133,832¾2015 UASI: $44,672¾Federal Equitable Sharing: $23,467¾Chapter 59 Asset Forfeitures: $89,556¾U.S. Marshals Violent Offenders Task Force: $28,000¾PD: Law Enforcement Officer Standards & Education: $12,108¾Fire: Law Enforcement Officer Standards & Education: $2,858¾NCTCOG High Speed Grinder: $81,694¾NCTCOG HHW Drop-Off Facility Project: $162,000¾Transportation Projects: $98,242,276¾Farmer’s Market Program: $15,059¾TIFMAS Training Tuition: $7,890¾National Urban Search & Rescue Response System: $437,829¾Ambulance Services: $958,281¾TEMAT-Hurricane Harvey: $134,237City of Denton, Texas Grants DashboardNote: All figures presented are in millions of dollars.
Section 2
City of Denton
Quarterly Financial Report
September 2017
This report is designed for internal use and does not include all the
funds and accounts included in the City of Denton’s operations. The
information provided is unaudited; for a complete audited report,
please refer to the City of Denton Comprehensive Annual Financial
Report, available through the City’s Finance Department, City
Secretary’s Office, or Denton Public Libraries.
FINANCIAL SUMMARY
City of Denton
General Fund
Schedule of Revenues - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2017
PRIOR ANNUAL PRELIMINARY BUDGET VS
REVENUE DESCRIPTION Y-T-D BUDGET ACTUALS ACTUALS
Current Year - Ad Valorem 39,882,138$ 42,506,508$ 43,191,856$ 2%
Delinquent - Ad Valorem 145,600 277,443 192,136 -31%
Miscellaneous Penalties & Fees 298,468 362,184 334,007 -8%
Ad Valorem Taxes 40,326,206 43,146,135 43,717,999 1%
Sales Tax 32,624,298 32,835,370 36,841,138 12%
Franchise - Gas Utilities 561,852 485,262 485,262 0%
Franchise - Private Electric Utilities 162,124 138,651 138,651 0%
Franchise - Cable 638,316 546,133 546,133 0%
Franchise - Telecom 295,640 248,970 248,970 0%
Franchise - Denton Municipal Utilities 4,570,917 4,187,833 4,187,833 0%
Franchise Fees 6,228,849 5,606,849 5,606,849 0%
Other Taxes 366,194 350,474 481,295 37%
Ambulance Service Fees 3,596,833 3,470,290 3,676,916 6%
Fire Department Fees 173,579 191,427 151,702 -21%
Building Inspections Fees 551,137 505,723 505,954 0%
Park Department Fees 1,770,435 2,319,956 1,892,754 -18%
Planning Department Fees 1,138,764 871,440 965,972 11%
Reprographics Fees 354,920 468,428 349,048 -25%
Miscellaneous Service Fees 113,380 107,573 118,306 10%
Service Fees 7,699,048 7,934,837 7,660,652 -3%
Denton Municipal Fines 1,587,798 1,854,494 1,511,112 -19%
Parking Fines 296,725 193,650 254,705 32%
Miscellaneous Fines and Fees 946,060 1,040,653 898,333 -14%
Court Administrative and Service Fees 937,212 1,020,445 977,287 -4%
Fines and Fees 3,767,795 4,109,242 3,641,437 -11%
Demolition Permits 7,220 9,884 5,890 -40%
Building Permits 2,977,064 2,821,470 2,897,518 3%
Certificate of Occupancy 76,010 90,854 74,290 -18%
Miscellaneous Licenses and Permits 45,868 42,708 47,153 10%
Licenses and Permits 3,106,162 2,964,916 3,024,851 2%
Investment Income 293,617 271,541 371,305 37%
Miscellaneous Revenues 1,309,498 1,311,568 1,601,350 22%
Miscellaneous Resources 1,603,115 1,583,109 1,972,655 25%
ROI - Denton Municipal Utilities 7,017,916 7,722,165 7,506,361 -3%
Transfers 8,157,673 8,081,468 8,066,694 0%
Transfers 15,175,589 15,803,633 15,573,055 -1%
Total General Fund Revenues 110,897,256$ 114,334,565$ 118,519,931$ 4%
City of Denton
General Fund
Schedule of Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2017
PRIOR ANNUAL PRELIMINARY BUDGET VS
Y-T-D BUDGET ACTUALS ACTUALS
NEIGHBORHOOD SERVICES
Building Inspections 2,805,777$ 2,971,811$ 2,858,490 -4%
Community Improvement Services 1,732,141 1,857,104 1,629,488 -12%
Libraries 5,694,824 5,900,271 5,731,762 -3%
Parks and Recreation 12,071,357 13,529,169 12,496,423 -8%
Planning 2,982,785 3,348,526 3,068,236 -8%
Gas Well Review 295,456 402,389 168,703 -58%
Social Services 519,252 592,458 567,064 -4%
26,101,592 28,601,728 26,520,166 -7%
PUBLIC SAFETY
Animal Services 1,453,306 1,499,776 1,407,977 -6%
Fire 25,622,460 27,475,440 26,798,825 -2%
Municipal Court 1,347,489 1,385,603 1,290,483 -7%
Municipal Judge 367,801 436,068 381,877 -12%
Police 27,500,545 29,856,911 29,241,452 -2%
56,291,601 60,653,798 59,120,614 -3%
TRANSPORTATION
Traffic Operations 1,951,674 2,084,963 1,931,432 -7%
Transportation Operations 428,898 491,286 478,853 -3%
Street Lighting 721,956 735,000 787,441 7%
3,102,528 3,311,249 3,197,726 -3%
ADMINISTRATIVE & COMMUNITY SERVICES
Cable Television 305,959 331,111 301,806 -9%
City Manager's Office 3,158,762 2,926,197 2,661,177 -9%
Economic Development 3,027,135 3,537,603 3,829,541 8%
Facilities Management 3,697,923 4,026,387 4,011,320 0%
Finance 2,804,174 2,881,060 2,811,696 -2%
Human Resources 1,765,545 1,706,585 1,580,740 -7%
Internal Audit 52,384 175,000 137,540 -21%
Legal Administration 2,156,665 2,302,138 2,096,888 -9%
Public Communications Office 658,295 472,214 457,378 -3%
Reprographics 445,765 470,320 425,021 -10%
Non-Departmental 6,524,247 7,618,713 8,280,517 9%
24,596,854 26,447,328 26,593,624 1%
TOTAL EXPENDITURES 110,092,575$ 119,014,103$ 115,432,130 -3%
City of Denton
Electric Fund
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2017
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D
BUDGET1 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 9/30/16 68,175,554$ 75,996,851$
REVENUES:
Operating Revenues 166,448,466$ 176,682,489 171,878,163 -3%
Non-operating Revenues 6,441,443 300,000 757,187 152%
Total Revenues 172,889,909 176,982,489 172,635,350 -2%
EXPENDITURES:
Purchased Power 78,026,425 98,369,586 93,060,897 -5%
Operation and Maintenance 33,925,073 44,366,611 34,743,582 -22%
Return on Investment 4,992,005 5,506,335 5,405,518 -2%
Franchise Fee 7,125,480 7,866,192 7,717,675 -2%
Non-Operating Expenditures 29,107,011 30,299,596 29,190,204 -4%
Total Expenditures 153,175,994 186,408,320 170,117,876 -9%
Net Income (Loss) 19,713,915$ (9,425,831) 2,517,474
Ending Working Capital and Reserves 58,749,723$ 78,514,325$
1 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY
2016-17 budget process.
City of Denton
Water Fund
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2017
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET2 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 09/30/161 25,598,287$ 24,150,381$
REVENUES:
Water Sales Residential 16,705,733$ 19,449,831$ 17,504,928$ -10%
Water Sales Commercial 15,481,755 17,335,218 15,707,766 -9%
Water for Resale 616,588 548,878 1,301,603 137%
Other Water 1,183,685 794,235 1,374,788 73%
Transfers In 13,016,449 6,507,009 5,476,269 -16%
Investment Income 99,325 148,000 223,638 51%
Impact Fee Revenue 4,000,000 4,000,000 4,000,000 0%
Total Revenues 51,103,535 48,783,171 45,588,992 -7%
EXPENDITURES:
Personal Service 9,563,805 11,555,215 9,587,107 -17%
Purchased Power 1,295,189 1,687,487 1,221,663 -28%
Materials and Supplies 1,478,542 1,859,581 1,507,278 -19%
Maintenance and Repairs 1,215,538 1,563,468 1,448,707 -7%
Insurance 231,299 238,949 80,817 -66%
Miscellaneous 321,074 305,115 319,185 5%
Operations, Services 1,732,764 2,974,173 1,897,142 -36%
Capital Outlay3 8,704,026 13,258,479 12,906,384 -3%
Return on Investment 1,173,001 1,334,486 1,213,302 -9%
Franchise Fee 1,675,715 1,882,155 1,733,289 -8%
Debt Service 13,447,023 11,535,170 11,195,411 -3%
Transfers Out 3,378,672 3,588,413 3,611,755 1%
Total Expenditures 44,216,648 51,782,691 46,722,040 -10%
Net Income (Loss) 6,886,887$ (2,999,520) (1,133,048)
Ending Working Capital
and Reserves 22,598,767$ 23,017,333$
1 The Beginning Working Capital balance excludes $5,607,327 of Impact Fee Reserves.
budget process.
in FY 2016 and the release of the related reserve funds.
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2016-17
3 Includes one-time transfer of $3,000,000 to Capital Projects using dollars related to the refunding of the Utility Revenue Bonds
City of Denton
Wastewater Fund
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2017
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET2 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 09/30/161 18,083,783$ 18,107,040$
REVENUES:
Residential Fees 10,888,886$ 11,188,269$ 11,655,664$ 4%
Commercial Fees 12,000,409 11,592,297 12,207,762 5%
Effluent Irrigation Fees 128,609 60,413 103,593 71%
Wholesale Fees 625,894 582,400 631,996 9%
Other Wastewater Fees 3,103,227 1,757,866 1,894,464 8%
Drainage Fees 4,509,969 4,601,201 4,645,817 1%
Transfer In 5,309,357 875,819 920,819 5%
Investment Income 88,309 119,500 170,898 43%
Impact Fee Reserves 2,000,000 3,520,000 3,520,000 0%
Total Revenues 38,654,660 34,297,765 35,751,013 4%
EXPENDITURES:
Personal Service 7,387,387 8,237,275 7,279,661 -12%
Purchased Power 1,192,928 946,000 986,920 4%
Materials and Supplies 924,844 1,489,447 1,077,202 -28%
Maintenance and Repairs 1,219,472 1,534,572 1,182,149 -23%
Insurance 247,655 187,676 28,312 -85%
Miscellaneous 45,782 52,608 49,129 -7%
Operations, Services 1,848,210 2,377,977 1,934,437 -19%
Capital Outlay3 6,563,561 11,216,031 11,207,727 0%
Return on Investment 852,911 881,344 887,541 1%
Franchise Fee 1,218,444 1,259,062 1,267,915 1%
Debt Service 7,638,539 6,909,931 6,815,945 -1%
Transfers Out 3,267,989 3,503,618 3,232,592 -8%
Total Expenditures 32,407,722 38,595,541 35,949,530 -7%
Net Income (Loss) 6,246,938$ (4,297,776) (198,517)
Ending Working Capital
and Reserves 13,786,007$ 17,908,523$
1 The Beginning Working Capital balance excludes $3,285,220 of Impact Fee Reserves, $1,000,000 for Drainage Reserves,
and $135,000 for Development Plan Line Reserves.
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated
in the FY 2016-17 budget process.
3 Includes one-time transfer of $4,300,000 to Capital Projects using dollars related to the refunding of the Utility Revenue Bonds
in FY 2016 and the release of the related reserve funds.
City of Denton
Drainage Operations
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2017
PRIOR BUDGET PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D Y-T-D ACTUALS ACTUALS
REVENUES:
Residential Drainage Fees 1,720,485$ 1,703,396$ 1,762,980$ 3%
Nonresidential Drainage Fees 2,789,484 2,897,805 2,882,837 -1%
Wastewater Resources - 18,240 13,913 -24%
General Fund Transfer 500,555 501,336 501,336 0%
Total Revenues 5,010,524 5,120,777 5,161,066 1%
EXPENDITURES:
Personal Service 1,633,645 1,863,953 1,453,432 -22%
Materials and Supplies 59,704 86,946 45,991 -47%
Maintenance and Repairs 61,543 148,267 82,066 -45%
Insurance 24,078 19,827 2,992 -85%
Miscellaneous 15,248 16,000 16,158 1%
Operations, Services 480,949 581,854 341,028 -41%
Capital Outlay 1,208,061 1,133,594 1,989,444 75%
Debt Service 948,470 640,740 636,372 -1%
Transfer Out 578,826 629,596 593,583 -6%
Total Expenditures 5,010,524 5,120,777 5,161,066 1%
Net Income (Loss) -$ -$ -$
City of Denton
Solid Waste Fund
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2017
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET2 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 09/30/161 6,044,618$ 7,757,121$
REVENUES:
Garbage Fees - Residential 10,544,051$ 11,121,950 11,173,109 0%
Garbage Fees - Commercial 14,173,498 15,436,305 14,884,430 -4%
Landfill Fees 5,175,524 6,695,086 6,249,179 -7%
Materials Processing and Mining 108,922 968,364 131,253 -86%
Recycling and Public Outreach 855,009 851,165 872,049 2%
Site Operations 186,744 247,025 208,259 -16%
Other Revenue 1,797,730 1,525,980 613,664 -60%
Investment Income 19,207 4,500 29,830 563%
Total Revenues 32,860,685 36,850,375 34,161,773 -7%
EXPENDITURES:
Personal Service 9,811,579 11,397,800 10,423,461 -9%
Materials and Supplies 540,001 577,277 401,553 -30%
Maintenance and Repairs 552,344 615,715 409,889 -33%
Insurance 194,245 224,503 94,952 -58%
Miscellaneous 63,193 81,750 62,659 -23%
Operations, Services 5,976,483 7,832,621 6,123,676 -22%
Capital Outlay 2,212,053 3,172,300 1,914,843 -40%
Debt Service 7,325,342 8,140,351 8,059,193 -1%
Franchise Fee 1,576,873 1,808,587 1,687,618 -7%
Landfill Closure3 398,073 265,541 1,198,301 351%
Transfer Out 2,540,427 2,698,020 2,580,719 -4%
Total Expenditures 31,190,613 36,814,465 32,956,864 -10%
Net Income (Loss) 1,670,072$ 35,910 1,204,909
Ending Working Capital
and Reserves 6,080,528$ 8,962,030$
1 The Beginning Working Capital Reserve excludes $7,378,027 Landfill Closure/Post Closure Reserves.
2 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2016-
17 budget process.
3Landfill Closure expense is greater than budget because a revaluation of the Landfill Closure/Post Closure liability during the year.
City of Denton
Airport Fund
Schedule of Revenues and Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2017
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET1 ACTUALS ACTUALS
Beginning Working Capital
and Reserves as of 09/30/16 2,449,840$ 2,482,155$
OPERATING REVENUES:
Airport Ground Leases 449,114$ 704,000 584,700 -17%
FBO Commissions 178,086 240,000 208,931 -13%
Miscellaneous 78,564 55,000 95,524 74%
Total Operating Revenues 705,764 999,000 889,155 -11%
OPERATING EXPENDITURES:
Personal Service 633,513 668,509 519,113 -22%
Materials and Supplies 41,503 46,725 26,196 -44%
Maintenance and Repairs 73,645 82,593 56,987 -31%
Insurance 22,358 21,604 7,025 -67%
Miscellaneous 1,024 1,200 1,024 -15%
Operations 220,814 255,621 190,267 -26%
Transfers Out - Operating 455,112 473,114 470,222 -1%
Franchise Fee 35,268 - - 0%
Total Operating Expenses 1,483,237 1,549,366 1,270,834 -18%
Operating (Loss)(777,473) (550,366) (381,679)
NON-OPERATING REVENUES:
Investment Income 27,980 25,000 42,244 69%
Gas Well Royalties 478,310 450,000 606,518 35%
Total Non-Operating Revenues 506,290 475,000 648,762 37%
NON-OPERATING EXPENDITURES:
Debt Service2 475,835 - - 0%
Transfers Out - Capital 169,835 - - 0%
Total Non-Operating Expenses 645,670 - - 0%
Non-Operating Income (Loss) (139,380) 475,000 648,762
Net Income (Loss)(916,853)$ (75,366) 267,083
Ending Working Capital 2,374,474$ 2,749,238$
1 Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was
estimated in the FY 2016-17 budget process.
2 Airport debt balances were moved to the general government in FY 2016-17 with the related debt service expenditures being paid from the Debt Service Fund.
City of Denton
Street Improvement Fund
Schedule of Expenditures - Budget vs Actuals (Unaudited)
For the Period Ended September 30, 2017
PRIOR ANNUAL PRELIMINARY BUDGET VS
DESCRIPTION Y-T-D BUDGET1 ACTUALS ACTUALS
Beginning Fund Balance
as of 9/30/2016 1,521,965$ 1,798,625$
RESOURCES:
Franchise Fees 9,412,250$ 11,608,420 10,673,762 -8%
Street Cuts 246,515 350,000 240,099 -31%
Intergovernmental 200,794 -
Investment Income 20,534 10,000 14,294 43%
Transfers In 1,027,435 997,363 1,023,161 3%
Miscellaneous - - 76,668 -
Total Resources 10,706,734 12,965,783 12,228,778 -6%
EXPENDITURES:
Personal Service 2,647,046 3,637,896 2,951,195 -19%
Materials and Supplies 91,886 82,150 107,616 31%
Maintenance and Repairs 5,097,476 7,953,085 8,600,740 8%
Insurance 50,417 43,022 8,649 -80%
Miscellaneous 4,253 5,000 3,609 -28%
Operations, Services 652,287 635,307 748,540 18%
Transfer Out 1,752,969 964,323 803,803 -17%
Fixed Assets - 96,631 -
Total Expenditures 10,296,334 13,320,783 13,320,783 0%
Net Income (Loss) 410,400$ (355,000) (1,092,005)
Ending Fund Balance 1,166,965$ 706,620$
1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2016-17 budget process.
City of Denton
Grants
Schedule of Expenses - Budget vs Preliminary Actuals (Unaudited)
For the Period Ended September 30, 2017
GRANT DESCRIPTION
EXPENDITURES
AS OF 9/30/20161
ANNUAL
BUDGET
PRELIMINIARY
ACTUALS
BUDGET VS
ACTUALS
FY 2016-17 Budget
US Dept of HUD -
Community Development Block Grant(CDBG)2,124,054$ 1,284,350$ 651,300$ 51%
US Dept of HUD -
HOME Investment Partnership Program 2,485,405 857,710 330,979 39%
Community Development 4,609,459 2,142,060 982,279 46%
TxDot STEP Comprehensive Grant - 74,560 69,397 93%
2016 Byrne JAG Grant - 25,000 19,398 78%
2015 UASI - 83,000 83,000 100%
2016 UASI - 130,000 - 0%
Emergency Management Performance Grant - 46,825 43,956 94%
2015 Tobacco Enforcement Grant - 12,000 7,350 61%
Public Safety - 371,385 223,101 60%
Summer Food Grant2 - 200,000 - 0%
TxDot NW Trail Extension Grant - 1,314,781 999,870 76%
Parks and Recreations - 1,514,781 999,870 66%
Airport Maintenance (RAMP) Grant - 50,000 50,000 100%
Airport West Side Runway Grant - 5,950,000 677,263 11%
Airport - 6,000,000 727,263 12%
Texas Emission Reduction Plan Rebate Grant - 112,667 112,667 100%
CNG Fueling Station #13 - 600,000 - 0%
NCTCOG High Speed Grinder - 50,000 50,000 100%
NCTCOG Low Speed Grinder - 150,000 150,000 100%
NCTCOG 2016 Chevrolet Traverse #2 - 33,000 32,415 98%
Solid Waste - 945,667 345,082 36%
TxDot US 380 Projects - 155,844 155,844 100%
Transportation - 155,844 155,844 100%
Interlibrary Loan Program (ILL) - 25,000 20,246 81%
Other - 25,000 20,246 81%
Total FY 2016-17 Budget 4,609,459 11,154,737 3,453,685 31%
New Awards
Emergency Solutions Grant - 133,832 117,311 88%
Community Development - 133,832 117,311 88%
2015 UASI - 44,672 44,672 100%
Federal Equitable Sharing - 23,467 23,467 100%
Chapter 59 Asset Forfeitures - 89,566 89,566 100%
U.S. Marshals Violent Offenders Task Force - 28,000 28,000 100%
PD-Law Enforcement Officer Standards & Education - 12,108 12,108 100%
Fire-Law Enforcement Officer Standards & Education - 2,858 2,858 100%
Public Safety - 200,671 200,671 100%
NCTCOG High Speed Grinder 81,694 81,694 100%
NCTCOG Regional HHW Drop-Off Facility Project - 162,000 155,796 96%
Solid Waste - 243,694 237,490 97%
City of Denton
Grants
Schedule of Expenses - Budget vs Preliminary Actuals (Unaudited)
For the Period Ended September 30, 2017
GRANT DESCRIPTION
EXPENDITURES
AS OF 9/30/20161
ANNUAL
BUDGET
PRELIMINIARY
ACTUALS
BUDGET VS
ACTUALS
County-Traffic Signal-US 380-Cindy Lane - 250,000 218,296 87%
NT Blvd Bridge Enhancement-35E - 303,914 303,914 100%
TxDot-IH35E at Loop 288/Lillian Miller Pkwy - 53,865 - 0%
TxDot-RTR-McKinney (Formerly FM426)4 - 18,267,303 138 0%
TxDot-Hickory Creek - 2,400,000 2,294 0%
TxDot-N TX Blvd Roundabout - 2,000,000 11,805 1%
TxDot-RTR-Mayhill Rd-IH35 E to US 380 11,438,659 33,897,794 2,765,024 8%
TxDot-RTR-Bonnie Brae Rd-IH35 E to US 377 6,428,246 39,723,105 2,266,263 6%
TxDot-RTR-ITS COMM Trunk Line 225,305 1,346,295 28,067 2%
Transportation 18,092,210 98,242,276 5,595,801 6%
Farmers Market Grant 57,831 15,059 15,059 100%
TIFMAS-Confined Space Training Tuition - 750 750 100%
TIFMAS-Rope Rescue I Training Tuition - 750 750 100%
TIFMAS-Rope Rescue II Training Tuition - 1,125 1,125 100%
TIFMAS-Strategy Tactics Training Tuition - 1,000 1,000 100%
TIFMAS-Vehicle Rescue Tech Training Tuition - 2,345 2,345 100%
TIFMAS-Swift Water Rescue Training Tuition - 1,920 1,920 100%
National Urban Search & Rescue Response System - 437,829 437,829 100%
Ambulance Services-Uncompensated Care Cost - 958,281 958,281 100%
TEMAT-Hurricane Harvey 134,237 134,237 100%
Other 57,831 1,553,296 1,553,296 100%
Total New Awards 18,150,041 100,373,769 7,704,569 8%
TOTALS 22,759,500$ 111,528,506$ 11,158,254$ 10%
1 A portion of the grants presented cover multiple years.
2 The City has decided to let a non-profit operate the Summer Food Program.
3 The City has decided to withdraw from constructing a Public CNG fueling facility, and the first reimbursement in the amount of
$201,367.87 from TCEQ was returned on September 14, 2017.
4 Advance Funding received in April 2017.
Section 3
City of Denton
Quarterly Financial Report
September 2017
REVENUE & ECONOMIC
ANALYSIS
Revenue & Economic Analysis
Summary
The data included in this section provides information on local, state
and national trends impacting the City’s financial position.
The following notes are provided to facilitate this section’s readability.
1. Positive Outlook – Represents favorable conditions for the local
economy. Color code – Green.
2. Cautious Outlook – Represents changing conditions that
require close monitoring. Color code – Yellow.
3. Negative Outlook – Represents unfavorable conditions for the
local economy. Color code – Red.
The data included in this section have been obtained from a variety of
sources. Sales tax and construction related data have been obtained
from internal city departments. Economic data for the State have
been obtained from the Federal Reserve Bank of Dallas and may be
subject to availability. National economic data were compiled with
assistance from the City’s investment advisor, First Southwest Asset
Management.
National Economic Trends
Period Ending September 30, 2017
Gross Domestic Product (GDP)
The third quarter GDP (subject to revision) grew
at a surprisingly solid +3.0% annualized rate,
above the +2.6% median forecast and just below
the +3.1% Q2 reading. It was the best back-to-
back quarterly performance in three years.
Consumer spending, the primary engine of U.S.
GDP growth, slowed from +3.3% to +2.4%, but
other lessor components combined to make up the
difference. Most analysts had expected a hurricane
slowdown in the third quarter followed by higher
growth in subsequent periods. Although the
slowdown wasn’t apparent last quarter, future
rebuilding should still provide a nice boost to the
economy in the coming months. GDPNow was
tracking early Q4 growth at +2.7% on October
25th. The latest Bloomberg economist survey
indicates average annual GDP growth of between
+2.0% and +2.4% for the next five quarters.
There’s upside potential to all of these forecasts.
Nonfarm Payrolls
Business payrolls fell by -33k in September, the
first outright decline in 84 months. As expected,
the Bureau of Labor Statistics reported that “many
employees in the areas affected by the hurricanes
were likely off payrolls during the reference
period.” The September year-over-year earnings
growth rate increased from +2.5% to +2.9%,
equaling an eight-year high. Although this sharp
rise suggests labor market tightness is creating
wage pressure, the cause was primarily a result of
low-earning restaurant and bar workers not being
able to report for work during the survey period.
On the household side, the total labor force grew
by +575k while a stunning +906k found work.
Unlike in the company survey, the BLS cited “no
discernable effect” from the hurricanes in the
household survey. This surprisingly strong
employment growth pushed headline
unemployment from 4.4% to a 16-year low of
4.2%.
Inflation
Inflation,or the lack of inflation, will continue to
be a focus for the Fed as it debates interest rate
policy going forward. The Fed would like to see
inflation grow closer to +2.0% on an annual basis.
The consumer price index (CPI) rose +0.5% in
September, while core CPI gained +0.1%. Higher
storm-related gasoline prices drove 75% of the
large headline change. On a year-over-year basis,
overall consumer inflation increased from +1.9%
to +2.2%, while core CPI remained anchored at
+1.7% for the fifth straight month. Prices on
services are driving the modest increase in the
core rate, while prices on goods are actually
falling. The -1.0% year-over-year drop in goods
prices was the steepest in 13+ years. The PCE
core slipped further, falling from +1.4% in July to
+1.3% in August, extending the downtrend after
peaking at +1.9% in Jan & Feb.
Retail Sales
Retail sales rose +1.6% in September, the
biggest advance since March 2015. However, the
gain was storm-related with oversized increases
in (replacement) vehicles, building materials and
gasoline station sales. There are few signs that
underlying spending patterns have improved
despite consumer confidence measures near a
16-year high. After falling all summer, auto
sales rocketed to a 12-year high in September.
An estimated one million vehicles were
reportedly destroyed by Hurricanes Harvey and
Irma, so some of the sales surge can be attributed
to replacement activity. Pricing discounts and
incentives offered by manufacturers in an effort
to reduce bloated auto inventories earlier in the
month were also a driver of sales. Any
significant future tax cut could boost short-term
spending as confidence finally translates into
discretionary purchases.
Texas Home Sales
Texas home sales fell by -6.1% from the second
to the third quarter, and slipped by -0.3% on a
year-over-year basis. The year-over-year decline
was the first since 2009. It isn’t clear whether the
drop was related more to Hurricane Harvey or
persistently lean home inventories. The average
Texas home price in September was $271.5k, a
+4.8% increase over the previous year, but down
from the high of $286.8k just three months
earlier. In Denton County during the third
quarter, unit home sales rose +1.5% over the
same period a year ago. The average home price
in September was $326.9k, a +4.8% year-over-
year increase, but down from the high of $351.9k
three months ago. Total Denton county listings
in September were 3,294, roughly 20% higher
than a year ago.
The paper was prepared by FirstSouthwest Asset Management, is intended for educational and informational purposes only and does not constitute legal or
investment advice, nor is it an offer or a solicitation of an offer to buy or sell any investment or other specific product. Information provided in this paper was
obtained from sources that are believed to be reliable; however, it is not guaranteed to be correct, complete, or current, and is not intended to imply or establish
standards of care applicable to any attorney or advisor in any particular circumstances. The statements within constitute the views of FirstSouthwest Asset
Management as of the date of the report and may differ from the views of other divisions/departments of Hilltop Securities. In addition, the views are subject
to change without notice. This paper represents historical information only and is not an indication of future performance.
Fuel Prices Outlook Cautious
Description: Quarterly fuel trends for the United States and Texas.
Analysis:Fuel prices are a major commodity source in the economy. Studies have shown a positive effect on
disposable income levels when fuel prices decrease. It is estimated that for every penny decrease in the price of
fuel, $1.3 billion is available to the consumer for disposable income. Therefore, the price of fuel is likely to be a key
predictor of sales tax collections. Fuel prices showed a 2.6% increase from the prior quarter at the national level and
a 3.3% increase at the state level. Staff has rated this outlook as Cautious.
Source: U.S. Department of Energy
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
4Q '13 2Q '14 4Q '14 2Q '15 4Q '15 2Q '16 4Q '16 2Q '17 4Q '17 MillionsDollarsFuel Prices
Sales Tax Texas Fuel Prices US Fuel Prices
Municipal Cost Index Outlook Negative
Description:The Municipal Cost Index was developed to show the rate of inflation for the cost of goods purchased
frequently by local governments. The MCI draws on the monthly statistical data collected by the U.S. Departments
of Commerce and Labor as well as independently compiled data to project a composite cost picture for the
municipal budget officer or operating department manager.Costs of labor, materials and contract services are all
factored into the composite MCI. Major indicators of these items used for the MCI include the Consumer Price
Index, the Wholesale Price Index for Industrial Commodities (now known as the Producer Price Index) and the
construction cost indexes published by the U.S. Department of Commerce, respectively.
Analysis:The Municipal Cost Index (MCI) pulls a variety of prices for frequently purchased commodities for local
governments. The cost for labor, materials and contract services are factored for the MCI. An increase in MCI
means the overall price mix for these types of commodities will cost local governments more to do routine business.
The 4th Quarter of 2017 shows an increase of 1.8% over the prior quarter and an increase of 7.8% over the 4th
Quarter of 2016. Staff has rated this indicator as Negative.
Note: The Municipal Cost Index is designed to show the effects of inflation on the cost of providing municipal services. State
and local government officials rely on American City & County's Municipal Cost Index to stay on top of price trends, help control
price increases for commodities, make informed government contract decisions and intelligent budget planning. Since 1978,
readers have loyally referred to the Municipal Cost Index to determine the cost of inflation and, hence, the rising cost of doing
business as a local government.
Source: American City and County Magazine
226.00
228.00
230.00
232.00
234.00
236.00
238.00
240.00
242.00
244.00
246.00
4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17 4Q '17
Municipal Cost Index
Hotel Occupancy Tax Analysis Outlook Positive
4th Quarter FY 2016-17
Actual Y-T-D
Occupancy Tax Revenue: 634,856$ 2,547,213$
FY 2016-17 Budget 609,991$ 2,324,214$
Over (Under) Budget 24,865$ 222,999$
Hotel Occupancy Tax Budget: 2,324,214$
End of Year Projection: 2,474,214$
End of Year Actual: 2,547,213$
222,999$
Variance - Actual to Projection 72,999$
Description:Tax imposed on a person who, under a lease, concession, permit, right of access, license, contract, or
agreement, pays for the use of a room that is in a hotel. A hotel includes: any building in which the public may obtain
sleeping accomodations; motels; a tourist home, house or court; lodginghouse; inn; roominghouse; or bed and
breakfast. The tax rate levied by the City is 7% of the price paid for a room. The State also levies a tax equal to 6%.
Analysis:While the use of this revenue source is restricted by state law, it is an essential revenue source for various
tourist related activities within the community and an important indicator of local economic activity. Hotel Occupancy
tax revenue through the 4th Quarter of FY 2017 was 4% more than budget and 7% prior year's actual. The FY 2017
revenue includes an incoming transfer of $150,000 from a canceled capital project approved in a prior fiscal year.
Staff has rated the outlook for this economic indicator as Positive.
FISCAL YEAR FORECAST
Variance - Actual to Budget
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Hotel Occupancy Tax Collections
FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
SalesandUseTaxAnalysis Outlook Positive
4thQuarter FY2016Ͳ17
Actual YͲTͲD
Revenue:GrossSalesTax
MunicipalOperations 605,108$1,884,628$
GeneralRetail&Others 9,608,30136,369,503
ComptrollerFees (188,567)(713,633)
AmountRetained (184,796)(699,360)
TotalRevenue 9,840,046$36,841,138$
*Expenses:EconomicIncentives
DentonCrossing1 126,912$538,220$
UnicornLake2 19,54874,447
RayzorRanch3 308,6621,202,007
GoldenTriangle4 43,363155,389
TotalExpenses 498,485$1,970,063$
NetTotal 9,341,56134,871,075
FY2016Ͳ17Budget 8,141,68630,734,173
Over(Under)Budget 1,199,875$4,136,902$
SalesTaxBudget: 32,835,370$
YearEndProjection: 36,027,994
36,841,138
VariancetoOriginalBudget: 4,005,768$
VariancetoYearEndProjection: 813,144$
EconomicDevelopmentExpenditureBudget: 2,101,197$
YearEndProjection: 2,088,005
YearEndActual: 1,922,014
VariancetoOriginalBudget: 179,183$
VariancetoYearEndProjection: 165,991$
*EconomicIncentiveactualsarethroughAugust2015withbudgetamountforSeptember.
1Incentiveis33%ofsalestaxes.For2016Ͳ17salestaxequaled$1,630,970.
2Incentiveis33%ofsalestaxes.For2016Ͳ17salestaxequaled$225,597.
3Incentiveis50%ofsalestaxes.For2016Ͳ17salestaxequaled$2,404,014.
4Incentiveis50%ofsalestaxes.For2016Ͳ17salestaxequaled$310,778.
Description:Tax imposed on all retail sales, leases, and rentals of most goods, as well as taxable services. The total tax
rateleviedwithintheCityis8.25%(State,6.25%;City,1.5%;DCTA,0.5%).
Analysis:As the second largest revenue source to the City's General Fund, sales and use taxes are essential to the
delivery of services to the community. Sales tax revenues through the 4th Quarter of FY 2017 compared to revenues
from the prior year 4th Quarter shows a 12.93% increase, and compared to the budget shows a 12.20% increase. Staff
hasratedthisindicatorasPositive.
YearEndActual:
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
1stQtr 2ndQtr 3rdQtr 4thQtr
GrossSalesTax Collections(Millions)
FY2012Ͳ13Actual FY2013Ͳ14Actual FY2014Ͳ15Actual FY2015Ͳ16Actual FY2016Ͳ17Actual
Certificates of Occupancy Outlook Positive
Source: City of Denton's Development Services Department.
Description:Certificates of Occupancy (CO) are permits issued in compliance with the 2009 International Building
Code (IBC) and applicable City ordinances. The IBC states,"that no building shall be used or occupied, and no change
in the existing occupancy classification of a building or structure or portion thereof shall be made, until the building
official has issued a certificate of occupancy." Certificates of Occupancy ensure that applicable building, fire and
consumer health codes are met.
Analysis:Certificates of Occupancy are an economic indicator that provides a framework for the overall condition of
the local economy. Certificates of Occupancy increased 7.9% from the prior quarter and increased 13.6% from the
4th Quarter of 2016. Staff has rated the outlook for this revenue indicator as Positive.
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
4Q
'12
1Q
'13
2Q
'13
3Q
'13
4Q
'13
1Q
'14
2Q
'14
3Q
'14
4Q
'14
1Q
'15
2Q
'15
3Q
'15
4Q
'15
1Q
'16
2Q
'16
3Q
'16
4Q
'16
1Q
'17
2Q
'17
3Q
'17
4Q
'17
Certificates of Occupancy
Residential Permits Outlook Positive
Source: City of Denton's Development Services Department.
Description:Residential Permits are issued in compliance with the 2009 International Residential Code (IRC) and
applicable City ordinances. The data presented in this analysis only include new permits issued and not
remodels/alterations.
Analysis:Residential Permits are an economic indicator that provides a framework for the overall condition of the
local economy. In particular, residential permits have a direct correlation with building inspection fees and
appraised values. Residential permits increased 57.1% from the prior quarter and increased 37.6% from the 4
th
Quarter of 2016. Staff has rated the outlook for this revenue indicator as Positive
0.0
50.0
100.0
150.0
200.0
250.0
4Q
'12
1Q
'13
2Q
'13
3Q
'13
4Q
'13
1Q
'14
2Q
'14
3Q
'14
4Q
'14
1Q
'15
2Q
'15
3Q
'15
4Q
'15
1Q
'16
2Q
'16
3Q
'16
4Q
'16
1Q
'17
2Q
'17
3Q
'17
4Q
'17
Residential Permits
Texas Leading Indicators Index Outlook Cautious
Source: Federal Reserve Bank of Dallas
Description:The Texas Leading Indicators Index is a single weighted summary statistic that sheds light on the future
of the state's economy. The index is designed to signal movements and changes in the state's rate of growth. The
index includes the following leading indicators: Texas Value of the Dollar, U.S. Leading Index, Real Oil Prices, Well
Permits, Initial Claims for Unemployment Insurance, Texas Stock Index, Help-Wanted Advertising, and Average
Weekly Hours Worked in Manufacturing.
Analysis:Texas Leading Indicators provide a framework for the overall condition of the local economy. Data for this
quarter shows an increase in the state's rate of growth. The index increased .9% from the prior quarter and
increased 2.98% from the 4th Quarter of 2016. Staff has rated this indicator as Cautious
100.0
105.0
110.0
115.0
120.0
125.0
130.0
135.0
140.0
3Q
'07
1Q
'08
3Q
'08
1Q
'09
3Q
'09
1Q
'10
3Q
'10
1Q
'11
3Q
'11
1Q
'12
3Q
'12
1Q
'13
3Q
'13
1Q
'14
3Q
'14
1Q
'15
3Q
'15
1Q
'16
3Q
'16
1Q
'17
3Q
'17
Texas Leading Indicators Index
Unemployment Rate Index Outlook Positive
Description:Unemployment is defined as the number or proportion of people looking for work at the prevailing
wage who are unable to find employment.
Analysis:Unemployment is an economic indicator that provides a framework for the overall condition of the
national, state and local economies. The unemployment rate for the City of Denton is at 3.2% for the 4
th Quarter.
The unemployment rates for most of the other reported sectors were either down or flat from the prior quarter. As
a result of the downward trend since the high of the 1st Quarter of 2011, staff has rated the outlook for this revenue
indicator as Positive.
Note: U6 unemployment includes marginally attached workers who currently are neither working nor looking for work but
indicate that they want and are available for a job and have looked for work sometime in the recent past. Discouraged
workers, a subset of the marginally attached, have given a job-market related reason for not looking currently for a job.
Persons employed part-time for economic reasons are those who want and are available for full-time work but have had to
settle for a part-time schedule.
Source: Federal Reserve Bank of Dallas, U.S. Bureau of Labor Statistics, and Texas Workforce Commission
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
4Q '11 2Q '12 4Q '12 2Q '13 4Q '13 2Q '14 4Q '14 2Q '15 4Q '15 2Q '16 4Q '16 2Q '17 4Q '17
Unemployment Rate Index
Dallas-Plano-Irving MD Denton Texas U6 Unemployment United States
City of Denton Seal
Section 4
City of Denton
Quarterly Financial Report
September 2017
INVESTMENT REPORT
4th Fiscal Quarter 2017 - September 30, 2017 Page 1
INVESTMENT POOL
Policy
Par Market Book Unrealized Max. Benchmark
Portfolio: Value Value Value
Gain/(Loss)1 WAM WAM YTM Yield*
Investment Pool 707,614,071$ 706,581,905$ 707,643,535$ (1,061,630)$ 382 550 1.25% 1.00%
*Twelve month moving average of a one year
U.S. T-bill yield
% of Total
Par Market Book Unrealized Portfolio Policy
Securities By Investment Type: Value Value Value
Gain/(Loss)1 WAM YTM (Book Value) Max.
U.S. Treasuries 54,000,000 54,005,424 54,062,054 (56,630) 241 1.11% 7.64% 100.00%
U.S. Federal Agencies 352,756,000 351,938,910 352,831,583 (892,673) 526 1.22% 49.86% 100.00%
Municipal Bonds 22,800,000 22,733,295 22,841,978 (108,683) 334 1.09% 3.23% 15.00%
Certificates of Deposit 151,000,000 151,000,000 151,000,000 - 398 1.50% 21.34% 35.00%
Commercial Paper 40,000,000 39,846,205 39,849,849 (3,644) 98 1.33% 5.63% 15.00%
Local Government Investment Pools 59,924,172 59,924,172 59,924,172 - 1 1.04% 8.47% 50.00%
Insured Cash Sweep Savings Deposits 25,000,000 25,000,000 25,000,000 - 1 1.10% 3.53% -
Demand Deposits 2,133,899 2,133,899 2,133,899 - 1 0.60% 0.30% -
Total Portfolio 707,614,071$ 706,581,905$ 707,643,535$ (1,061,630)$ 382 1.25% 100.00% -
Current 3 Months Ago 3 Month 1 Year Ago
Investment Pool Comparisons: 9/30/2017 6/30/2017 Difference 9/30/2016
Par Value 707,614,071$ 777,853,000$ (70,238,929)$ 539,155,268$
Market Value 706,581,905$ 776,842,268$ (70,260,363)$ 539,975,092$
Book Value 707,643,535$ 777,932,815$ (70,289,280)$ 539,713,329$
Unrealized Gain(Loss) (1,061,630)$ (1,090,547)$ 28,917$ 261,763$
Weighted Average Maturity 382 359 23 339
Yield to Maturity 1.25% 1.16% 0.09% 0.90%
Portfolio Composition:
U.S. Treasuries 7.64% 6.96% 0.68% 5.36%
U.S. Federal Agencies 49.86% 44.61% 5.25% 39.91%
Municipal Bonds 3.23% 4.11% -0.88% 6.55%
Certificates of Deposit 21.34% 18.74% 2.60% 30.02%
Commercial Paper 5.63% 8.97% -3.34% 4.62%
Local Government Investment Pools 8.47% 16.39% -7.92% 12.91%
Insured Cash Sweep Savings Deposits 3.53% 0.00% 3.53% 0.00%
Demand Deposits 0.30% 0.22% 0.08% 0.63%
Bank Collateral Review**: Institution Collateral Type Market Value Collected Balance Collateral Ratio
Wells Fargo Demand Deposits BNY Mellon U.S. Agency MBS 35,611,658$ 1,805,586$ 1972.30%
LegacyTexas Bank Certificates of Deposit*** Fed Home Loan Bank Standby LOC 65,220,000$ 62,765,771$ 103.91%
Independent Bank Certificates of Deposit Fed Home Loan Bank Standby LOC 32,600,000$ 30,542,667$ 106.74%
**Does not include FDIC insurance
***Formerly, ViewPoint Bank
Depository Ledger Balance Review: Institution Account Type Beginning Bal. Deposits Ending Bal.
Wells Fargo Bank Checking 3,164,674$ 98,160,345$ 2,133,899$
Compliance Statement & Review:
Assistant Director of Finance Treasury Administrator
(99,191,120)$
Director of Finance
Reviewer: Chuck Springer, CGFO Reviewer: Bryan Langley, CGFO
Deputy City Manager/COO
ANTONIO PUENTE, JR.CAROLINE FINLEY
CHUCK SPRINGER BRYAN LANGLEY
Withdrawals
The Quarterly Investment Report is in full compliance with the objectives, restrictions, and strategies as set forth in the City of Denton's Investment
Policy and the Public Funds Investment Act (Texas Government Code, Chapter 2256.023).
Reviewer: Antonio Puente, Jr., CGFO Preparer: Caroline Finley
9.95%
-8.68%
-0.33%
Pledge Required
1.01%
> 102%
> 100%
> 100%
-4.44%
3.53%
43
0.35%
-3.32%
166,606,813$
167,930,206$
(1,323,393)$
2.28%
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
1 Year Ago
Difference
168,458,803$
1Unrealized gain/(loss) is the difference between the market and book value and does not represent an actual gain or loss. Gains and losses are
realized only when a security is sold prior to maturity. Since it is the City's practice to hold investments until they mature, the temporary gains and
losses are unlikely to be realized.
4th Fiscal Quarter 2017 - September 30, 2017 Page 2
INVESTMENT POOL
Current 3 Months Ago 3 Month 1 Year Ago 1 Year
9/30/2017 6/30/2017 Difference 9/30/2016 Difference
Par Value - U.S. Treasuries 54,000,000$ 54,000,000$ -$ 29,000,000$ 25,000,000$
Par Value - U.S. Federal Agencies 352,756,000 347,000,000 5,756,000 215,000,000 137,756,000
Par Value - Municipal Bonds 22,800,000 31,860,000 (9,060,000) 35,060,000 (12,260,000)
Certificates of Deposit 151,000,000 145,756,500 5,243,500 162,000,000 (11,000,000)
Par Value - Commercial Paper 40,000,000 70,000,000 (30,000,000) 25,000,000 15,000,000
Local Government Investment Pools 59,924,172 127,524,172 (67,600,000) 69,700,000 (9,775,828)
Insured Cash Sweep Savings Deposits 25,000,000 - 25,000,000 - 25,000,000
Demand Deposits 2,133,899 1,712,328 421,571 3,395,268 (1,261,369)
Total Par Value 707,614,071$ 777,853,000$ (70,238,929)$ 539,155,268$ 168,458,803$
Market Value - U.S. Treasuries 54,005,424$ 54,066,642$ (61,218)$ 29,070,259$ 24,935,165$
Market Value - U.S. Federal Agencies 351,938,910 346,204,860 5,734,050 215,494,931 136,443,979
Market Value - Municipal Bonds 22,733,295 31,808,347 (9,075,052) 35,382,959 (12,649,664)
Certificates of Deposit 151,000,000 145,756,500 5,243,500 162,000,000 (11,000,000)
Market Value - Commercial Paper 39,846,205 69,769,419 (29,923,214) 24,931,675 14,914,530
Local Government Investment Pools 59,924,172 127,524,172 (67,600,000) 69,700,000 (9,775,828)
Insured Cash Sweep Savings Deposits 25,000,000 - 25,000,000 - 25,000,000
Demand Deposits 2,133,899 1,712,328 421,571 3,395,268 (1,261,369)
Total Market Value 706,581,905$ 776,842,268$ (70,260,363)$ 539,975,092$ 166,606,813$
Book Value - U.S. Treasuries 54,062,054$ 54,135,449$ (73,395)$ 28,951,676$ 25,110,378$
Book Value - U.S. Federal Agencies 352,831,583 347,074,851 5,756,732 215,376,940 137,454,643
Book Value - Municipal Bonds 22,841,978 31,945,426 (9,103,448) 35,375,374 (12,533,396)
Certificates of Deposit 151,000,000 145,756,500 5,243,500 162,000,000 (11,000,000)
Book Value - Commercial Paper 39,849,849 69,784,089 (29,934,240) 24,914,071 14,935,778
Local Government Investment Pools 59,924,172 127,524,172 (67,600,000) 69,700,000 (9,775,828)
Insured Cash Sweep Savings Deposits 25,000,000 - 25,000,000 - 25,000,000
Demand Deposits 2,133,899 1,712,328 421,571 3,395,268 (1,261,369)
Total Book Value 707,643,535$ 777,932,815$ (70,289,280)$ 539,713,329$ 167,930,206$
Accrued Interest 3,052,951$ 3,368,342$ (315,391)$ 2,505,147$ 547,804$
Cash Value -709,634,856$ 780,210,610$ (70,575,754)$ 542,480,239$ 167,154,617$
(Total Market Value + Accrued Interest)
Unrealized Gain/(Loss)(1,061,630)$ (1,090,547)$ 28,917$ 261,763$ (1,323,393)$
Change in Fair Value since 9/30/16 -(1,586,781)$ (1,624,078)$ 37,297$ (1,257,756)$ (329,025)$
(GASB 31)
Strategy Statement:The investment pool is an aggregation of the majority of City funds which may include tax receipts, enterprise fund revenues, fine and fee
income, as well as some, but not necessarily all bond proceeds, grants, gifts and endowments. This portfolio is maintained to meet
anticipated daily cash needs for the City's operations, capital projects and debt service. In order to meet these obligations and to minimize
potential liquidation losses, the dollar-weighted stated average maturity of the investment pool shall not exceed 1.5 years or 550 days. The
objectives of this portfolio are to: (1) ensure safety of principal by investing in only high quality securities for which a strong secondary market
exists; (2) ensure that anticipated cash flow needs are matched with adequate investment liquidity; (3) limit market and credit risk through
diversification; and (4) attain the best feasible yield, commensurate with the objectives and restrictions set forth in the Investment Policy, by
actively managing the portfolio to meet or exceed the twelve month moving average yield of a one year U.S. Treasury bill as derived from the
Federal Reserve Statistical Release H.15 for constant maturities.
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
4th Fiscal Quarter 2017 - September 30, 2017 Page 3
INVESTMENT POOL
Current 3 Months Ago 1 Year Ago
Summary By Security Type: 9/30/2017 6/30/2017 9/30/2016
U.S. Treasuries - Coupon 54,062,054$ 54,135,449$ 28,951,676$
U.S. Federal Agencies - Coupon 322,073,977 326,075,506 200,377,114
U.S. Federal Agencies - Callable 30,757,606 20,999,345 14,999,826
Municipal Bonds - Coupon 22,841,978 31,945,426 35,375,374
Certificates of Deposit - CDARS 59,000,000 38,756,500 58,000,000
Certificates of Deposit - Collateralized - - 9,000,000
Certificates of Deposit - SLOC 92,000,000 107,000,000 95,000,000
Commercial Paper - Discount 39,849,849 69,784,089 24,914,071
Local Government Investment Pools 59,924,172 127,524,172 69,700,000
Insured Cash Sweep Savings Deposits 25,000,000 - -
Demand Deposits 2,133,899 1,712,328 3,395,268
Total Book Value 707,643,535$ 777,932,815$ 539,713,329$
Objective:
Current 3 Months Ago 1 Year Ago
Summary By Security Type: 9/30/2017 6/30/2017 9/30/2016
U.S. Treasuries - Coupon 7.64% 6.96% 5.36%
U.S. Federal Agencies - Coupon 45.51% 41.92% 37.13%
U.S. Federal Agencies - Callable 4.35% 2.70% 2.78%
Municipal Bonds - Coupon 3.23% 4.11% 6.55%
Certificates of Deposit - CDARS 8.34% 4.98% 10.75%
Certificates of Deposit - Collateralized 0.00% 0.00% 1.67%
Certificates of Deposit - SLOC 13.00% 13.75% 17.60%
Commercial Paper - Discount 5.63% 8.97% 4.62%
Local Government Investment Pools 8.47% 16.39% 12.91%
Insured Cash Sweep Savings Deposits 3.53% 0.00% 0.00%
Demand Deposits 0.30% 0.22% 0.63%
Total 100.00% 100.00% 100.00%
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
The portfolio is restricted to U.S. Treasuries and agency securities (maturing in less than five years); state and locally issued Texas municipal bonds
rated AA or better (maturing in less than three years); insured, collateralized, or standby letter of credit backed certificates of deposit (maturinginless
than three years); collateralized repurchase agreements (maturing in less than thirty days); commercial paper rated A-1/P-1 or better (maturing in less
than 270 days); and local government pools & SEC registered government money market mutual funds (weighted average maturity of less than 60
days).
U.S. Treasuries -
Coupon
7.64%
U.S. Federal Agencies -
Coupon
45.51%
U.S. Federal Agencies -
Callable
4.35%
Municipal Bonds -
Coupon
3.23%
Certificates of
Deposit - CDARS
8.34%
Certificates of
Deposit - SLOC
13.00%Commercial Paper -
Discount
5.63%
Local Government
Investment Pools
8.47%
Insured Cash Sweep
Savings Deposits
3.53%
Demand Deposits
0.30%
Current
9/30/2017
4th Fiscal Quarter 2017 - September 30, 2017 Page 4
INVESTMENT POOL
Current 3 Months Ago 1 Year Ago
Summary By Issuer: 9/30/2017 6/30/2017 9/30/2016
CDARS CDs 59,000,000$ 38,756,500$ 58,000,000$
COMERICA BANK CDs - - 9,000,000
LEGACYTEXAS BANK CDs* 62,000,000 77,000,000 62,000,000
INDEPENDENT BANK CDs 30,000,000 30,000,000 33,000,000
U.S. TREASURY 54,062,054 54,135,449 28,951,676
FFCB 84,030,979 78,026,414 36,994,683
FHLB 130,125,419 145,072,491 73,036,503
FHLMC 52,934,154 43,052,167 53,248,546
FNMA 85,741,031 80,923,779 52,097,208
DALLAS, TX WTR & SWR REV BDS 10,000,000 10,000,000 10,000,000
TEXAS A&M UNIV REV BDS 4,500,000 9,500,000 9,514,690
WILLIAMSON COUNTY, TX GEN OBG BDS - - 1,629,498
LUBBOCK, TX GO REFUNDING BDS 3,301,573 3,302,629 3,305,799
UNIVERSITY OF HOUSTON, TX REV BDS 5,040,405 5,067,543 5,148,956
MCKINNEY, TX GENERAL OBG BONDS - 1,184,434 1,211,640
TEXAS SCHOOL DIST GEN OBG BONDS - 2,890,820 4,564,791
JP MORGAN SECURITIES LLC 24,870,611 14,893,352 24,914,071
TOYOTA MOTOR CREDIT CORP 4,990,263 16,966,273 -
GE CAPITAL TREASURY LLC - 17,977,050 -
NESTLE FINANCE INTL LTD 9,988,975 14,950,275 -
AMERICAN HONDA FINANCE - 4,997,139 -
TEXSTAR 59,924,172 127,524,172 69,700,000
INSURED CASH SWEEP SAVINGS 25,000,000 - -
WELLS FARGO DEMAND DEPOSITS 2,133,899 1,712,328 3,395,268
Total Book Value 707,643,535$ 777,932,815$ 539,713,329$
Objective:
Current 3 Months Ago 1 Year Ago
Summary By Issuer: 9/30/2017 6/30/2017 9/30/2016
CDARS CDs 8.34% 4.98% 10.75%
COMERICA BANK CDs 0.00% 0.00% 1.67%
LEGACYTEXAS BANK CDs* 8.76% 9.90% 11.49%
INDEPENDENT BANK CDs 4.24% 3.86% 6.11%
U.S. TREASURY 7.64% 6.96% 5.36%
FFCB 11.87% 10.03% 6.85%
FHLB 18.39% 18.65% 13.53%
FHLMC 7.48% 5.54% 9.87%
FNMA 12.12% 10.40% 9.65%
DALLAS, TX WTR & SWR REV BDS 1.41% 1.29% 1.85%
TEXAS A&M UNIV REV BDS 0.64% 1.22% 1.76%
WILLIAMSON COUNTY, TX GEN OBG BDS 0.00% 0.00% 0.30%
LUBBOCK, TX GO REFUNDING BDS 0.47% 0.42% 0.61%
UNIVERSITY OF HOUSTON, TX REV BDS 0.71% 0.65% 0.96%
MCKINNEY, TX GENERAL OBG BONDS 0.00% 0.15% 0.23%
TEXAS SCHOOL DIST GEN OBG BONDS 0.00% 0.37% 0.85%
JP MORGAN SECURITIES LLC 3.51% 1.92% 4.62%
TOYOTA MOTOR CREDIT CORP 0.71% 2.18% 0.00%
GE CAPITAL TREASURY LLC 0.00% 2.31% 0.00%
NESTLE FINANCE INTL LTD 1.41% 1.92% 0.00%
AMERICAN HONDA FINANCE 0.00% 0.64% 0.00%
TEXSTAR 8.47% 16.39% 12.91%
INSURED CASH SWEEP SAVINGS 3.53% 0.00% 0.00%
WELLS FARGO DEMAND DEPOSITS 0.30% 0.22% 0.63%
Total 100.00% 100.00% 100.00%
*Formerly, ViewPoint Bank
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
It is the policy of the City to diversify its investment portfolio by restricting investments in a single issuer/institution to no more than 35 percent of the portfolio's total book value and to those offering
repurchase agreements, collateralized CDs (including standby letters of credit), and local or state of Texas municipal securities to no greater than 15 percent. The purpose of this requirement is to limit
market and credit risk. Commercial paper issuers are further restricted by a 5 percent total portfolio limitation. There are no issuer limitations on U.S. Treasuries or FDIC insured products except as they
pertain to the overall 35% certificates of deposit and 15% savings deposit restrictions. Some investment types may be further limited.
CDARS CDs, 8.34%
LEGACYTEXAS BANK CDs, 8.76%
INDEPENDENT BANK CDs, 4.24%
U.S. TREASURY, 7.64%
FFCB, 11.87%
FHLB, 18.39%
FHLMC, 7.48%
FNMA, 12.12%
DALLAS, TX WTR & SWR REV BDS,
1.41%
TEXAS A&M UNIV REV BDS, 0.64%
LUBBOCK, TX GO REFUNDING
BDS, 0.47%
UNIVERSITY OF HOUSTON, TX REV
BDS, 0.71%
JP MORGAN SECURITIES LLC,
3.51%
TOYOTA MOTOR CREDIT CORP,
0.71%
NESTLE FINANCE INTL LTD, 1.41%
TEXSTAR, 8.47%
INSURED CASH SWEEP SAVINGS,
3.53%
WF DEMAND DEPOSITS, 0.30%
Current
9/30/2017
4th Fiscal Quarter 2017 - September 30, 2017 Page 5
INVESTMENT POOL
Current 3 Months Ago 1 Year Ago
Maturity Time Frame: 9/30/2017 6/30/2017 9/30/2016
00-03 Months 136,058,071$ 226,053,000$ 123,095,268$
03-06 Months 115,300,000 44,000,000 96,200,000
06-12 Months 137,500,000 174,800,000 81,060,000
12-24 Months 200,000,000 223,000,000 190,800,000
24 Months & Over 118,756,000 110,000,000 48,000,000
Total Par Value 707,614,071$ 777,853,000$ 539,155,268$
Objective:
Current 3 Months Ago 1 Year Ago
Maturity Time Frame: 9/30/2017 6/30/2017 9/30/2016
00-03 Months 19.23% 29.06% 22.83%
03-06 Months 16.30% 5.66% 17.84%
06-12 Months 19.43% 22.47% 15.03%
12-24 Months 28.26% 28.67% 35.39%
24 Months & Over 16.78% 14.14% 8.91%
Total 100.00% 100.00% 100.00%
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
The risk of market price volatility is minimized through maturity diversification. Investment maturities are staggered to provide cash flows
based on the anticipated needs of the City. Liquidity is achieved by matching investment maturities with forecasted cash disbursements
and by investing in securities with active secondary markets. Short-term local government investment pools and government money
market mutual funds help to provide daily liquidity and may be utilized as a competitive alternative to other fixed income investments.
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
$400,000,000
$450,000,000
$500,000,000
$550,000,000
$600,000,000
$650,000,000
$700,000,000
$750,000,000
$800,000,000
$850,000,000
Current 3 Months Ago 1 Year Ago
00-06 Months 06-12 Months 12-24 Months 24 Months & Over
4th Fiscal Quarter 2017 - September 30, 2017 Page 6
ECONOMIC SUMMARY
Interest Rate History
Source: U.S. Federal Reserve Statistical
Release (H.15)
Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14
Market Sector:Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg
Fed Funds (effective) 0.07% 0.13% 0.16% 0.14% 0.16% 0.14% 0.09% 0.08% 0.09% 0.08% 0.10%0.09%
3-Month U.S. T-Bill 0.01% 0.08% 0.09% 0.11% 0.07% 0.09% 0.05% 0.02% 0.07% 0.05% 0.04%0.02%
2-Year U.S. T-Note 0.26% 0.34% 0.29% 0.26% 0.26% 0.26% 0.33% 0.40% 0.34% 0.40% 0.45%0.57%
Portfolio Benchmark* 0.18% 0.15% 0.15% 0.16% 0.18% 0.18% 0.16% 0.15% 0.13% 0.13% 0.12%0.12%
Portfolio Yield 0.59% 0.58% 0.56% 0.55% 0.52% 0.50% 0.48% 0.49% 0.50% 0.49% 0.49%0.51%
Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17
Market Sector:Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg
Fed Funds (effective) 0.12% 0.11% 0.13% 0.14% 0.24% 0.36% 0.38% 0.40% 0.54% 0.79% 1.04%1.15%
3-Month U.S. T-Bill 0.03% 0.03% 0.02% 0.02% 0.23% 0.30% 0.27% 0.29% 0.51% 0.75% 1.00%1.05%
2-Year U.S. T-Note 0.64% 0.64% 0.69% 0.71% 0.98% 0.88% 0.73% 0.77% 1.20% 1.31% 1.34%1.38%
Portfolio Benchmark* 0.12% 0.15% 0.18% 0.24% 0.32% 0.41% 0.49% 0.54% 0.61% 0.69% 0.83%1.00%
Portfolio Yield 0.55% 0.57% 0.57% 0.65% 0.72% 0.79% 0.81% 0.90% 0.95% 1.07% 1.16%1.25%
*Twelve month moving average of a one year
U.S. T-bill yield
Fiscal Year:
2016-2017
2015-2016
2014-2015
2013-2014
2012-2013
2011-2012
QUARTERLY COMMENTARY
September 30, 2017
Source: First Southwest Asset Management
Economic Summary & TexSTAR Monthly
Newsletter
CITY OF DENTON : QUARTERLY INVESTMENT REPORT
Fiscal Year 2011-2012 Fiscal Year 2012-2013 Fiscal Year 2013-2014
The third calendar quarter was marked by increased tensions with North Korea, a plethora of costly natural disasters, and
festering fiscal policy uncertainty. As anticipated, there was no annoucned rate hike from the Septermber Federal Open Market
Committee (FOMC) meeting; however, FED Chair Yellen reterated the probability of a 25 basis point increase in the overnight
funds rate in December with the possibility of three more in 2018. Committee members also revealed a late October start date for
reduction of its $4.5 trillion bond portfollio. After the meeting, interest rates increased sharply across the curve while stocks
remained resilient. According to the Bloomberg economist survey dated October 10, 2017 the median growth forecast for third
quarter real GDP is 2.1%, followed by 2.3%, 2.6% and 2.4% for the next three quarters.
Fiscal Year to Date Earnings
3 Months 6 Months 9 Months 12 Months
613,879$
568,825$
612,750$
1,121,491$
1,177,337$
1,239,869$
2,298,785$
1,175,753$ 6,999,226$
1,680,154$
Oct - Dec Oct - Mar Oct - Jun Oct - Sep
Fiscal Year 2014-2015 Fiscal Year 2015-2016 Fiscal Year 2016-2017
2,276,341$
2,511,585$
2,743,856$ 3,961,971$
2,695,211$
849,368$
621,194$
1,771,205$
2,763,136$ 4,734,315$
1,874,847$ 1,228,059$
1,703,496$
1,862,207$
0.00%
0.50%
1.00%
1.50%
Dec-
11
Mar-
12
Jun-
12
Sep-
12
Dec-
12
Mar-
13
Jun-
13
Sep-
13
Dec-
13
Mar-
14
Jun-
14
Sep-
14
Dec-
14
Mar-
15
Jun-
15
Sep-
15
Dec-
15
Mar-
16
Jun-
16
Sep-
16
Dec-
16
Mar-
17
Jun-
17
Sep-
17
Fed Funds 3-Month T-Bill 2-Year T-Note Portfolio Yield Portfolio Benchmark*
FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17
Footbridge through Quakertown Park
Section 5
City of Denton
Quarterly Financial Report
September 2017
PERFORMANCE REPORT
Strategic Plan
The City of Denton uses a Strategic Plan as a roadmap to achieve long-term goals and objectives that
capture the City’s Vision, Mission, and Value statements. The first Strategic Plan was formally
approved by the City Council in April 2011, and it has been updated periodically since that time. Over
the past year, the City has partnered with the Bloomberg What Works Cities initiative to refine our
strategic outcomes and identify measurable ways to mark our progress. The City Council approved
the FY 2016-17 Strategic Plan and associated performance measures on September 20, 2016.
The Strategic Plan serves as the basis for resource allocation decisions that are used in the
development of the FY 2016-17 Budget. The Strategic Plan is organized into five Key Focus Areas
(KFAs) and major goals associated with each KFA are also identified below.
Key Focus Area 1: Organizational Excellence
Goal 1.1 Manage financial resources in a responsible manner.
Goal 1.2 Develop a high-performance work force.
Goal 1.3 Promote effective internal and external communication.
Goal 1.4 Achieve high level of customer satisfaction.
Goal 1.5 Utilize technology to enhance efficiency and productivity.
Goal 1.6 Collaborate with local, regional, state, and federal partners.
Key Focus Area 2: Public Infrastructure
Goal 2.1 Optimize resources to improve quality of City roadways.
Goal 2.2 Seek solutions to mobility demands and enhance connectivity.
Goal 2.3 Promote superior utility services and facilities.
Goal 2.4 Manage drainage infrastructure.
Goal 2.5 Develop Capital Improvement Program (CIP) based on community needs.
Key Focus Area 3: Economic Development
Goal 3.1 Develop targeted policies and incentives to achieve desired economic growth.
Goal 3.2 Make Denton a destination for visitors.
Goal 3.3 Promote a business-friendly environment.
Goal 3.4 Encourage development, redevelopment, recruitment, and retention.
Key Focus Area 4: Safe Liveable and Family Friendly Community
Goal 4.1 Enhance public safety in the community.
Goal 4.2 Seek clean and healthy neighborhoods in Denton.
Goal 4.3 Provide quality, diverse, and accessible neighborhood services for the community.
Goal 4.4 Provide and support outstanding leisure, cultural, and educational opportunities.
Goal 4.5 Provide support to citizens in need through social service agencies and programs.
Key Focus Area 5: Sustainable & Environmental Stewardship
Goal 5.1 Manage Denton’s water resources.
Goal 5.2 Improve air quality and greenhouse gas management.
Goal 5.3 Improve energy efficiency and conservation.
Goal 5.4 Manage land use and preserve open/natural spaces.
Goal 5.5 Provide alternative modes of transportation.
Goal 5.6 Promote sustainable materials resource management.
Goal 5.7 Encourage local food production.
Strategic Plan
The matrix below organizes the Key Focus Areas (KFAs) by select service areas in the organization.
While every department has some level of responsibility for each KFA, the matrix is intended to only
highlight the primary departments responsible for each KFA.
SERVICE AREA KFA 1 KFA 2 KFA 3 KFA 4 KFA 5
UTILITIES
Electric 9
Water 9 9 9 9
Wastewater 9 9
Solid Waste 9
INTERNAL SERVICES
Technology Services 9
Materials Management 9
Fleet 9 9
Risk 9
NEIGHBORHOOD SERVICES
Building Inspection 9 9 9
Community Improvement Services 9
Libraries 9
Parks and Recreation 9
Planning 9 9 9
Gas Well Operations 9
Community Development 9
PUBLIC SAFETY
Animal Services 9
Fire 9
Police 9
Municipal Court 9
TRANSPORTATION
Airport 9
Streets 9
Traffic/Transportation 9 9
ADMINISTRATIVE SERVICES
City Manager’s Office 9
Economic Development 9
Facilities Management 9
Finance 9 9
Human Resources 9
Internal Audit 9
Legal 9
Public Communications 9
Key Focus Area 1: Organizational Excellence
Key Focus Area 2: Public Infrastructure
Key Focus Area 3: Economic Development
Key Focus Area 4: Safe, Liveable and Family-Friendly Community
Key Focus Area 5: Sustainable & Environmental Stewardship
STRATEGIC PLAN PERFORMANCE REPORT 2016-17 CCity of Denton, Texas A visual representation of performance measures can be found on the City of Denton website: http://data.cityofdenton.com/showcase/strategic-measures
SSTRATEGIC PLAN PERFORMANCE REPORT 2016-17KEY FOCUS AREADEPARTMENT KEY PERFORMANCE INDICATORS TARGET4TH QTRPERCENTAGE OF FIRST CONTACT RESOLUTION FOR CUSTOMERS85% 91.0%AVERAGE TIME IN SECONDS TO ANSWER CALLS60 28PERCENTAGE OF PAYMENT TRANSACTIONS COMPLETED ELECTRONICALLY59% 64.1%NUMBER OF GRANICUS VIEWS OF LIVE AND ON-DEMAND VIDEOS18,000 19,727NUMBER OF YOUTUBE SUBSCRIBERS400 759PERCENTAGE OF ACTUAL GENERAL FUND REVENUE COMPARED TO BUDGETED REVENUE100% 103.7%PERCENTAGE OF ACTUAL GENERAL FUND EXPENDITURES AS COMPARED TO BUDGETED EXPENDITURES<100% 97.0%PERCENTAGE OF RATE OF INVESTMENT RETURN0.75% 1.25%PERCENTAGE RATE OF EMPLOYEE TURNOVER<10% 3.47%PERCENTAGE OF PERFORMANCE REVIEWS COMPLETED WITHIN 30 DAYS OF DUE DATE100% 95%INTERNAL AUDITNUMBER OF INTERNAL CONTROL OR LEAN GOVERNMENT PROJECTS IMPLEMENTED12 4PERCENTAGE OF CITIZENS RATING THE CITY WEBSITE AS A MAJOR SOURCE OF INFORMATION65% 60%NUMBER OF FOLLOWERS ON ALL SOCIAL MEDIA SITES100,000 170,542ENGINEERINGNUMBER OF ARTERIAL AND COLLECTOR INTERSECTIONS IMPROVED TO ADDRESS CAPACITY AND SAFETY11TRAFFICNUMBER OF SIGNALIZED INTERSECTIONS RETIMED69 14SQUARE YARDS OF ASPHALT ROADWAY RECONSTRUCTED60,000 58,642SQUARE YARDS OF ASPHALT ROADWAY OVERLAID36,943 107,713SQUARE YARDS OF ASPHALT ROADWAY MICRO-SEALED191,188 267,517TECH SERVICESPERCENTAGE OF CITY SERVED BY BROADBAND80% 87.9%KFA 2: PUBLIC INFRASTRUCTURE STREETSKFA 1: ORGANIZATIONAL EXCELLENCECUSTOMER SERVICEDTVFINANCEHUMAN RESOURCESPUBLIC COMMUNICATIONS
SSTRATEGIC PLAN PERFORMANCE REPORT 2016-17KEY FOCUS AREADEPARTMENT KEY PERFORMANCE INDICATORS TARGET4TH QTRPERCENTAGE OF CERTIFICATES OF OCCUPANCY REVIEWED WITHIN 10 DAYS95% 100%PERCENTAGE OF NEW COMMERCIAL PERMITS REVIEWED WITH 10 DAYS95% 95%PERCENTAGE OF TENANT FINISH OUTS REVIEWED WITHIN 10 DAYS95% 98.6%PERCENTAGE OF JOBS IN DENTON PAYING EQUAL TO OR GREATER THAN $75,00010.75% 14.4%MEDIAN FAMILY INCOME$63,411 $68,169PERCENTAGE RATE OF UNEMPLOYMENT<3.9% 3.2%PERCENTAGE OF JOBS IN DENTON PAYING EQUAL TO OR GREATER THAN $25,00068.5% 77.2%INCREASE IN RETURN ON INVESTMENT OF INCENTIVES AWARDED300% 400%NUMBER OF REDEVELOPED PROPERTIES IN DOWNTOWN DENTON618TOTAL NET SALES TAX COLLECTIONS RELATED TO ECONOMIC DEVELOPMENT INCENTIVES$3,800,000$3,595,187NUMBER OF BUSINESS RETENTION VISITS105 103FINANCEINCREASE IN COMMERCIAL AND INDUSTRIAL PROPERTY VALUES3% 15.7%PERCENTAGE OF SITE PLAN SUBMITTALS/RESUBMITTALS REVIEWED WITHIN 12 BUSINESS DAYS90% 87%PERCENTAGE OF SUBDIVISION PLAT SUBMITTALS/RESUBMITTALS REVIEWED WITHIN 12 BUSINESS DAYS90% 92%PERCENTAGE OF ZONING VERIFICATION LETTERS PROCESSED WITHIN 10 BUSINESS DAYS95% 100%PERCENTAGE OF ZONING BOARD OF ADJUSTMENTS VARIANCES PROCESSED WITHIN 60 DAYS90% 100%PERCENTAGE OF ZONING/REZONING APPLICATIONS PROCESSED WITHIN 60 DAYS90% 100%PERCENTAGE OF SPECIAL USE PERMITS PROCESSED WITHIN 60 DAYS90% 100%PERCENTAGE OF SUBDIVISION PLATS (APPROVED BY THE PLANNING AND ZONING COMMISSION) PROCESSED WITHIN 60 DAYS90% 92%PERCENTAGE OF SUBDIVISION PLATS (APPROVED ADMINISTRATIVELY) PROCESSED WITHIN 45 DAYS90% 91%KFA 3: ECONOMIC DEVELOPMENTPLANNINGECONOMIC DEVELOPMENTBUILDING INSPECTIONS
SSTRATEGIC PLAN PERFORMANCE REPORT 2016-17KEY FOCUS AREADEPARTMENT KEY PERFORMANCE INDICATORS TARGET4TH QTRNUMBER OF SMALL AREA PLANS INITIATED EACH CALENDAR YEAR22NUMBER OF CORRIDOR PLANS INITIATED EACH CALENDAR YEAR21NUMBER OF NEIGHBORHOOD PROJECT MATCHING GRANT APPLICATIONS PROCESSED EACH FISCAL YEAR53NUMBER OF NEIGHBORHOOD MICRO GRANT APPLICATIONS PROCESSED EACH FISCAL YEAR64NUMBER OF PEOPLE SERVED BY PUBLIC IMPROVEMENTS9,733 5,000NUMBER OF HOUSEHOLDS SERVED IN HOUSING PROGRAMS60 37NUMBER OF INDIVIDUALS AND/OR HOUSEHOLDS SERVED THROUGH CITY-SUPPORTED PROGRAMS15,000 13,810TOTAL FUNDING AMOUNT FROM LOCAL, STATE, AND FEDERAL GRANTS THAT WAS LEVERAGED$1,500,000$1,083,834NUMBER OF AFFORDABLE HOUSING UNITS DEVELOPED10NUMBER OF AFFORDABLE HOUSING UNITS MAINTAINED26 26PERCENTAGE OF NUISANCE VIOLATIONS ABATED90% 100%PERCENTAGE OF MINIMUM BUILDING STANDARD VIOLATIONS ABATED85% 100%PERCENTAGE OF ZONING VIOLATIONS ABATED85% 97%NUMBER OF DANGEROURS BUILDINGS REPAIRED OR DEMOLISHED30 28INCREASE IN OWNER-OCCUPIED HOUSING5% 0%PERCENT OF ACTIVE STRUCTURE FIRES RESPONDED TO IN FIVE MINUTES OR LESS (NFPA 1710 STANDARD IS 90 PERCENT OR LESS THAN FOUR MINUTES)50% 50.9%NUMBER OF INSPECTIONS COMPLETED FOR COMMERCIAL/INDUSTRIAL/MULTI-FAMILY STRUCTURES4,700 3,988NUMBER OF HOURS COMPLETED TO ENHANCE TRAINING PROGRAM TO IMPROVE ALIGNMENT WITH TEXAS COMMISSION ON FIRE PROTECTION AND ISO36,000 55,280GAS WELLSPERCENTAGE OF GAS WELL DRILLING AND PRODUCTION SITES INSPECTED100% 100%KFA 3: ECONOMIC DEVELOPMENTPLANNINGKFA 4: SAFE, LIVEABLE, AND FAMILY-FRIENDLY COMMUNITYCOMMUNITY DEVELOPMENTFIRE
SSTRATEGIC PLAN PERFORMANCE REPORT 2016-17KEY FOCUS AREADEPARTMENT KEY PERFORMANCE INDICATORS TARGET4TH QTRTOTAL CIRCULATION OF PHYSICAL ITEMS1,000,000 1,183,208NUMBER OF TIMES DATABASE SOFTWARE ACCESSED BY CUSTOMERS16,000 16,589TOTAL E-BRANCH CIRCULATION INCLUDING E-BOOKS E-MAGAZINES AND STREAMING CONTENT100,000 112,154LIBRARY CUSTOMERS WHO REPORT INCREASED AWARENESS OF LIBRARY OFFERINGS THROUGH OUTREACH CHANNELS: DPL2GO, EMBEDDED LIBRARY ASSIGNMENTS, AND COMMUNITY EVENTS25% 45%TOTAL MILES OF PEDESTRIAN TRAILS30 1.03NUMBER OF TREES PLANTED720 422ACRES OF PARKS PER 1,000 POPULATION18.61 18.65SATISFACTION RATING OF "GOOD" OR "EXCELLENT" FOR PROGRAMMING/NUMBER OF RATINGS RECEIVED4.5/3,600 4.7/5,336PERCENTAGE OF PROGRAMS OFFERED THAT MADE PARTICIPATION REQUIREMENTS94% 87%NUMBER OF STAKEHOLDER MEETINGS CONDUCTED200 260AVERAGE TIME IN MINUTES FOR PATROL RESPONSE FROM DISPATCH TO ARRIVAL ON SCENE FOR PRIORITY 1 (EMERGENCY) CALLS<6:00 7:49AVERAGE TIME IN MINUTES FOR PATROL RESPONSE FROM DISPATCH TO ARRIVAL ON SCENE FOR NON-EMERGENCY CALLS<10:00 12:28DECREASE IN MUNICIPAL ENERGY USAGE5% 7.8%PERCENT OF NON-SOLAR ENERGY REBATE FUNDING USED FROM BASE AMOUNT100% 100%PERCENT OF SOLAR ENERGY REBATE FUNDING USED FROM BASE AMOUNT100% 100%PERCENTAGE OF RENEWABLE ENERGY USED IN MUNICIPAL FACILITIES (1)70% 78%POUNDS OF WASTE DISPOSED PER CAPITA1,900 1,752PERCENTAGE OF WASTE DIVERTED FROM THE LANDFILL40% 26%NUMBER OF ACTIVE TRANSPORTATION SAFETY AND EDUCATION ACTIVITIES, EVENTS, AND INITIATIVES12 12NUMBER OF ACTIVE TRANSPORTATION PROMOTIONAL EVENTS10 10CENTERLINE MILES OF ON-STREET BIKE INFRASTRUCTURE, SUCH AS BIKE LANES 78.0NUMBER OF TRAIL AND BIKEWAY NETWORK GAPS REMOVED41NUMBER OF SIDEWALK DISCONNECTS/GAPS REMOVED44NUMBER OF TRANSIT STOPS WITH IMPROVED PEDESTRIAN AND BICYCLE ACCESS813(1) Measure clarified from the approved 2016-17 Strategic Plan.KFA 5: SUSTAINABLE AND EVIRONMENTAL STEWARDSHIPENVIRONMENTAL SERVICESSOLID WASTETRANSPORTATIONPARKSPOLICEKFA 4: SAFE, LIVEABLE, AND FAMILY-FRIENDLY COMMUNITYLIBRARY
City of Denton, Texas Strategic Plan Performance Report DashboardKeyActionStepsDuringthestrategicplanningprocess,staffidentifiedseveralKeyActionStepstobecompletedoverthecomingfiscalyear.ThepurposeofcreatingtheStrategicPlanactionstepsor“tasks”isto:•LinkbroadpolicygoalsidentifiedintheStrategicPlanwithspecificactionsthataretobeundertaken.•Providepolicymakersandemployeeswithkeymilestonesforassessingourperformance.•Establishaccountabilityforcompletingthetasksinthecomingyear.
City of Denton, Texas Strategic Plan Performance Report DashboardActionStepsDepartment TargetDate StatusImplementinterimCustomerRelationshipManager(CRM)moduleandotherfeedbackmechanismsforcitizensCityMgr.Office January2017 Thenewcityofdenton.comincludesaformtoreportanissueandageneralcontactpageforthepublic.TheserequestscometotheCMOandareroutedtoappropriatecitystaff.AcrossͲdepartmentalstaffteamstartedworkinJuly2017toexploreCRMoptionswiththegoalofbringingforwardarecommendationtotheCommitteeonCitizenEngagementorCityCouncilinlatefall2017.KeyFocusArea1:OrganizationalExcellence
City of Denton, Texas Strategic Plan Performance Report DashboardActionStepsDepartment TargetDate StatusCreateadigitalroadmapforprovidingservicestothecommunityTechnologyService September2017Wecompletedthesecondphasewhichincludesinterviewingkeystakeholderstoassistwiththedigitalroadmapdefinition. Wearescheduledtocompletethethirdphasewhichincludesasurveyforbothinternalstaffandresidents. TheinitialdraftofthedigitalroadmapwillbeavailableinNovemberorDecemberof2017.HoldregularperformancemanagementmeetingswithdepartmentsandexecutiveteamCityMgr.Office January2017 TheCityManager’sOfficehaslaunchedanewperformancemeasurementplatform throughtheinternalSharepoint siteinJuly2017tofacilitatecollectionandreportingonaquarterlybasisfromeachdepartment.Managementwillbeginholdingperformancemeetingseachquarterwithrotatingdepartments.Thefirstmeetingisscheduled forNov2017.KeyFocusArea1:OrganizationalExcellence
City of Denton, Texas Strategic Plan Performance Report DashboardActionStepsDepartment TargetDate StatusConductcitizenandbusinesssurveysandexploreoptionsforsolicitinginputfromvariousstakeholdersCityMgr.Office July2017 The2017CitizenSurveywassenttoasampleofresidentsandavailabletoallresidentsonlineinMay2017.Wereceived over1,300surveyresponses.TheresultswerepresentedtotheCommitteeonCitizenEngagementinAugust2017andsharedwiththeCity Council.Thebusinesssurveyisplannedtobeconductedinspring2018.Conduct“StateoftheCity”meetingwithcitizensandcreateCitizen’sAcademyCityMgr.Office March2017 Approximately150residentsattendtheStateoftheCityeventheldonMarch30,2017.TheCitizen’sAcademywasheldover5sessionsinJuneand July2017with12residentsparticipating.ThenextStateoftheCityeventisscheduledonJanuary18,2018.Enhanceopendataplatformandrelatedinitiatives TechnologyService January2017 ThenewopendataportalwaslaunchedinAugust2016.ThisStep hasbeencompleted.Staffhascontinuedtoworkwiththevendortoimprovetheplatform.UtilizetheLean,LEEP,PerformanceManagement,andEmployeeInnovationprogramstogenerateefficiencyandproductivityenhancementsCityMgr.Office Ongoing TheCityrecentlycompletedits2ndLEEPclassandsecondyearoftheinnovationprogramwithpositiveoutcomes. TheCityalsocontinuestousetheLeanprogramtoanalyzeandimproveprocessesthroughouttheCity.KeyFocusArea1:OrganizationalExcellence
City of Denton, Texas Strategic Plan Performance Report DashboardActionStepsDepartment TargetDate StatusCompletePhase1oftheIntelligentTransportationSystemCommunicationNetworkPlanTraffic December 2017 Weareontrackwiththetargetdateandcurrentlyat80%completewithdesignplansforPhase1fibernetworkconstruction.Transition10percentoffranchisefeerevenuetotheStreetImprovementFundFinance September2017 Thesecondyearofthis10yeartransitionwasadoptedFY2017Ͳ18budget.TheCity’sfiveͲyearGeneralFundforecastcallsforanadditional10percenttransfer($622,000annually)ofremainingfranchisefeestotheStreetImprovementFund.TransitionthefundingofstreetreconstructionactivitiesfrombondfundingtorevenuefundingforthesmallerstreetprojectsFinance Ongoing Thisactionstepisdependentontheannualtransitionof10percentoffranchisefeestotheStreetImprovementFund(prioractionstep).ThisincreaseinStreetMaintenancefundingwillallowforagreaterportionofstreetreconstructiontobefundedwithcashversusbondfunding.Thelongtermgoaloverthe10yearsistomoveamajorityofstreetreconstructiontocashfundingandsignificantlyreducetheneedforbondfunding.KeyFocusArea2:PublicInfrastructure
City of Denton, Texas Strategic Plan Performance Report DashboardActionStepsDepartment TargetDate StatusDevelopRightsͲofͲWay(ROW)Managementplan EngineeringandTechnologyServiceSeptember2017 AspartofthepreparationfortheimplementationofSenateBill1004andthenewTex.LocalGov’tCodeChapter284EngineeringandthecommitteeofCityDepartmentsprocessedseveralrecommendationsforadoption.Acompiledlistofbestpracticemeasureswerepresentedforapprovalandadoptionbyordinance.ThecommitteeachievedordinancesandapprovalfortheSmallCell/DASDesignManual,FeesrelatedtotheimplementationofChapter284,TEX.LOCALGOV’TCODE,andaPOLECOLLOCATIONATTACHMENTLICENSEAGREEMENT.TheROWmanagementprocessasawholeisongoingpendingtheevaluationandadjustmentsrelatedtoimplementingtheordinancesrelatedtoSenateBill1004.KeyFocusArea2:PublicInfrastructure
City of Denton, Texas Strategic Plan Performance Report DashboardActionStepsDepartment TargetDate StatusInstallfiberconduitaspartofmajortransportationprojectsalongarterialstreetsEngineering Ongoing TheprojectentailsinstallationoftheCity’sITS,Phase1($1.6millionNCTCOGITSGrant)fiberinfrastructure. EngineeringandTrafficOperationsStaffhasengagedtheservicesofBinkleyandBarfield consultingEngineerstopreparedesignplansfortheCity’sITSPhase1.Weareontrackwiththetargetdateandcurrentlyat80%completewithdesignplansforPhase1fibernetworkconstruction.ConduithasalreadybeeninstalledalongUS380andDCTAtracks.Currentlyworkingwithpurchasingdepartmenttoidentifyexistingfiberinstallationcontracts(withDME)forexpeditiouslyhiringacontractortobeginconstruction.StaffisalsoworkingwithTxDOT tohaveconduitinstalledintheirUSͲ377andFM2181roadwaywideningprojects,tobebidin2017.StaffisalsoworkingwithcontractorsonCityprojects(MayhillRoadandBonnieBraeRoad)toincludeinstallationofFiberalongthesemajorcorridors.KeyFocusArea2:PublicInfrastructure
City of Denton, Texas Strategic Plan Performance Report DashboardActionStepsDepartment TargetDate StatusDevelopincentivesandpoliciesthatattracthighͲwageemployerstoDentonEconomic Dev. September2017 TheEconomicDevelopmentDepartmenthasrevisedtheincentiveapplicationandis presentingdraftincentivepolicyamendmentstoCitymanagementinOctober2017.DevelopfundingmethodologyandstrategyforEconomicDevelopmentIncentiveFundEconomic Dev. September2017 TheEconomicDevelopmentIncentive FundwasestablishedinAugust2016.Itisfundedbyrevenuesfrommixedbeveragetaxesatarateof$150,000eachbudgetyear.Thecriteriaforeligibilitytoreceiveagrantfromthefundweredefinedintheadoptedordinance.ThestrategyistousethefundtopursuetargetedindustriesasdefinedbyCouncil,highͲinvestmentprojects,andprojectsthatinvolvehighͲwageand/orknowledgeͲbasedjobs.ContinuetoimplementworkforcedevelopmentprogramsEconomic Dev. September2017 SincetheEconomicDevelopmentDepartment doesnotitself“implement”workforcedevelopmentprograms,thisactionstepisbetterphrasedas“continuetocollaborateontheimplementationofworkforcedevelopmentprograms.”EDhastakentheleadroleinformingtheDentonWorkforceDevelopmentConsortiumamong DISD,NCTC,TWU,andNorthCentralTexasWorkforceSolutions.Thegrouphasmettwicein2017andwillhaveathirdmeetinginNovember2017.KeyFocusArea3:EconomicDevelopment
City of Denton, Texas Strategic Plan Performance Report DashboardActionStepsDepartment TargetDate StatusImplementimprovementstodevelopmentreviewprocessPlanning October2016•The Departmenthaseliminatedthesiteplanpermitandtherequirementforconstructiondrawingsforpreliminarysiteplanreview.Inaddition,aredͲlinedplanreleasehasbeenimplementedreducingresubmittals.•Asingleprojectmanagerwillbeassignedwitheachsubmittaltostreamlinecommunicationtotheapplicantwithin48hoursofsubmission.•Applicantswillnolongerneedtolistmaterialspecificationsonplans.TheDesignCriteriaManualcontainsthespecifications.•Acomprehensivesurveyhasbeensentto27municipalitiestocomparebusinessoperations.ResultsareexpectedbytheendofDecember2017.•StakeholdermeetingstocommunicateinitialchangeswillbeconductedinNovember2017.RewriteDentonDevelopmentCode Planning December2017 ClarionAssociateswithDevelopmentServicesreportedanddeliveredtheDentonDevelopmentCode(DDC)rewritetothecommunity.CityCouncil approvedanamendmenttothescopeofservicesforthecompletereͲwriteoftheDDCinNovember2017.ItisanticipatedthattheprojectwillbecompleteinMay2018.KeyFocusArea3:EconomicDevelopment
City of Denton, Texas Strategic Plan Performance Report DashboardActionStepsDepartment TargetDate StatusImplementrecommendationsfromstudyoncurrentdispatchsystemtoimproveefficiency,effectiveness,andcostPolice&Fire December2016•HiredaCommunicationsManagerandAssistantManager.•ThePoliceandFireChiefsandtheTechnologyServicesDirectorserveonthePublicSafetyAnsweringPoint(PSAP)Board.•SpecificationsforPoliceRMSandCADcomplete.DevelopmentofRFP’sforsystemacquisitionunderway.•TheBoardcontinuestomeetwiththearchitecttoworkontheplansfortheremodelofthedispatchcenter.DeployadditionalmedicunitinSoutheastDentonFire January2017•MedicUnit8wentintoserviceonJanuary1st.•ThetenantfinishoutofTemporaryStation8ontheDentonMedicalCitycampusiscomplete.ConductanalysistoidentifyhotspotsthatdrivepoliceresponseandconsiderresourceallocationtofocusonpreventioninthoseareasPolice December2016 Completedtheanalysisofproblemareasineachofthe5policedistrictsinDecemberof2016.Wecontinuetomonitorcriminalactivityineachdistrictandmakeresourceallocationadjustmentsbasedonthisactivity.KeyFocusArea4:Safe,Liveable &FamilyͲFriendlyCommunity
City of Denton, Texas Strategic Plan Performance Report DashboardActionStepsDepartment TargetDate StatusCollaboratewithCommunityImprovementServicestobuildrelationshipswithneighborhoodorganizationsPolice October2016 PersonnelfromPoliceandCommunityImprovementcontinuetoworktogethertoaddressproblemareas.Workedtogethertoalleviateissuesrelatedtocriminaltrespassingandlitteringatseveraltemporarycampsiteswithinthecity.ContinueimplementationandevaluationoftheenhancedrightͲofͲwaymaintenanceprogramCommunityImprovementServicesDecember 2016 ProjecthasbeenimplementedandevaluationofenhancedrightͲofͲwaymaintenanceprogramcontinues.CreateaninventoryandconductananalysisofCityͲownedormaintainedvacantlotsandbuildingsCommunityImprovementServices/EngineeringFebruary2017 Received afulllistofcityͲownedproperties(889)fromRealEstateinSeptember.Thelistisbeingreviewedforduplicationsandincompleteinformation(i.e.lackofaddresses).Thelistwillthenbesenttootherdepartmentstoclaimmaintenanceresponsibilityforindividualproperties.DevelopaprogramtoleveragevolunteerservicetomakecosmeticimprovementstohomesinDentonneighborhoodsCommunityImprovementServicesMay2017 Habitathadsomeorganizationalshifts.MetwithnewlyͲassignedstaffliaison forthe‘BrushwithKindness’program toprovidebackgroundinformationandagreementstoͲdate.Also,meetingwiththePeopleHelpingPeopleProgram(CityofDallas)tolookattheirfunding/sponsorshipmechanisms.KeyFocusArea4:Safe,Liveable &FamilyͲFriendlyCommunity
City of Denton, Texas Strategic Plan Performance Report DashboardActionStepsDepartment TargetDate StatusExpandDPL2GOMobileLibrarytodevelopstrategicrelationshipswithunderservedgroupsandneighborhoodsLibrary September2017 Librarystaffmemberscoordinated18DPL2Goeventsandmadecontactwith259communitymembersinthe4thquarter.DPL2Gooutreachservicesarefocusedonservingtraditionallyunderservedcommunitiesandgroups.Librarystaffworkswithlocalorganizations,multiͲfamilyhousingmanagersandowners,schools,nursinghomesandstatecarefacilities,communitygroups,localbusinessesandotherCitydepartmentstodeliverengaging,educational,andinformativeprogramsandbuildrelationshipswithcommunitymembersthroughoutDenton.SupporttheUnitedWayHomelessnessCoordinatorandtheDentonCountyHomelessnessLeadershipTeamtoimplementrecommendationsfromtheMayor’sTaskForceforHousingtheHomelessCommunity Development Ongoing ThisprogramisjointlyfundedwiththeUnitedWayofDentonCounty.TheCity’scontributiontotals$40,000plushumanresourcesthatincludeCitystaff,MayorandaCouncilmemberthatserveontheDentonCountyHomelessLeadershipTeam.KeyFocusArea4:Safe,Liveable&FamilyͲFriendlyCommunity
City of Denton, Texas Strategic Plan Performance Report DashboardActionStepsDepartment TargetDate StatusDedicateCityresourcesthatcommunityorganizationsandprogramsworkingwiththehomelesscanleverageforgreaterimpactCommunity Development Ongoing Citystaff,theMayorandCouncilmemberserveontheDentonCountyHomelessLeadershipTeam.CitystaffparticipatesintheDentonCountyHomelessCoalition.TheCityofDenton(COD)leveragesmultiplefundingsourcestheCitythendistributestoorganizationsandprogramsworkingwiththehomeless.4Q–Jul.1,2017Sep.30,2017$120,078.39inCODgeneralfunds*$29,629.25inCDBG,federalfunds*1271unduplicatedclients*assistedintheseprograms*includepreviouslyunreported$and#from1Q, 2Q,3QEncourageCityparticipationincoalitionsandcommunityorganizationsthataddresscommunitysocialissues,suchastheDentonCountyBehavioralHealthTeamandtheHomelessnessLeadershipTeamCommunity Development Ongoing Citystaff,theMayorandCityCouncilmembersserveonthefollowingCommunityOrganizations:DentonCountyBehavioralHealthLeadershipTeam(BHLT),DentonCountyHomelessLeadershipTeam(HLT).Inaddition,communitydevelopment(CD)staffserveasexͲofficiototheHLTandonBHLTandHLTworkgroups.CDstaffholdpositionsontheDentonCountyHomelessCoalition,DentonCountyHungerCoalition,EarlyChildhoodCoalition,CommunityHealthCouncil,UWCommunityNeedsAssessment,DentonCountyVeteransCoalition,andHealthyCommunitiesCoalition.KeyFocusArea4:Safe,Liveable&FamilyͲFriendlyCommunity
City of Denton, Texas Strategic Plan Performance Report DashboardActionStepsDepartment TargetDate StatusAdvancerenewablepowerportfolio DME Ongoing TheCityhasengagedEnterpriseRiskConsultantstodeveloparesourceplanforDMEthatwillincluderecommendationsregardingadditionalpurchasesofrenewablepowerandaplantoachievethe70%ormorerenewablegoal.TheCityhadissuedanRFPadditionalrenewableenergyinQ3andisnowreviewingresponses.StaffexpectstobringbackrecommendationsbasedontheRFPandresourceplaninlate2017/early2018.Expandcommercialrecyclingprogram Solid Waste Ongoing In2016,thenumberofrecyclingcontainerssetforcommercialcustomersincreasedfrom334to440.Fifty two (52)multiͲfamilyresidentialcustomersaddedrecyclingcontainersthisyear,increasing therecyclingparticipationrateto39%ofthemultiͲfamilydevelopments.KeyFocusArea5:Safe,Sustainable&EnvironmentalStewardship
City of Denton, Texas Strategic Plan Performance Report DashboardActionStepsDepartment TargetDate StatusContinueimplementationofBikePlan Transportation Ongoing Mostprojectsscheduledfor2016Ͳ2017werecompleted.Afewremainingprojectswillbedesignedbyanoutsideconsultant.MockingbirdLanebikeaccommodationdesignwasaddedtotheprojectandwillbeinstalledbythecity’sstripingcontract.WayfindingsignsfromTWUtoDDTCshouldbeinstalledbytheendofthecalendaryear.EightmilesofonͲstreetbikeinfrastructure werecompletedthisyear.KeyFocusArea5:Safe,Sustainable&EnvironmentalStewardship
South Lakes Park
Section 6
City of Denton
Quarterly Financial Report
September 2017
G.O. BOND PROGRAM
REPORT
2012 GO BOND PROGRAM UPDATEProgram DescriptionTotalProject CostBonds Issued Spent/EncumberedAvailableas of 9/30/17Street Reconstruction $20,000,000 $20,000,000 $11,766,992 $8,233,008Public Art for Streets $400,000 $400,000 $134,892 $265,108Proposition 1 – Street & Public Art Improvements $20,400,000 $20,400,000 $11,901,884 $8,498,116Program Description Staff CommentsStreet Reconstruction Staff has completed 118 of 208 total segments from the 2012 bond program. However, the amount reflected on this report represents 87 segments from the 2012 bond program and 16 segments from the 2014 bond program that have been funded with 2012 Bond Election bonds. The remaining 31 segments have been funded by other sources, including unspent GO bonds related to the 2005 bond program. We have also completed the following 2012 Bond Program streets: Bolivar (8 segments) and Crestmeadow (4 segments).Public Art for Streets The two UNT medallions have been installed at the North Texas Blvd. Bridge. The two City of Denton medallions are pending installation. Proposition 1 – Street & Public Art Improvements
2014 GO BOND PROGRAM UPDATEProgram DescriptionTotalProject CostBonds Issued Spent/EncumberedAvailableas of 9/30/17Street Reconstruction $24,000,000 $2,500,000 $1,816,737 $683,263Misc. Traffic Signals $3,000,000 $3,000,000 $716,844 $2,283,156Transportation Division Facility $1,500,000 $1,500,000 $120,933 $1,379,067Rail Quiet Zone – McKinney to Prairie $350,000 $350,000 $0 $350,000Bonnie Brae Secondary Arterial $9,500,000 $2,000,000 $1,565,304 $434,696Misc. Sidewalks $2,000,000 $1,650,000 $401,833 $1,248,167Hickory Creek Road – FM 2181 to Riverpass $3,000,000 $3,000,000 $0 $3,000,000Morse Street Expansion $2,900,000 $2,900,000 $0 $2,900,000Ruddell Extension $5,780,000 $790,000 $575,829 $214,171Misc. Roadways $2,000,000 $600,000 $1,340 $598,660Proposition 1 – Street Improvements $54,030,000 $18,290,000 $5,198,820 $13,091,180
2014 GO BOND PROGRAM UPDATEProgram Description Staff CommentsStreet Reconstruction Staff has completed 53 of 195 total segments from the 2014 bond program. Lillian Miller representing 9 segments, Eagle Drive representing 12 segments, with an additional 15 street segments were funded from the $2 million reflected as issued from the 2014 Bond Election. We have also completed the following residential streets from the 2014 Bond program: Ranch Estates (11 segments) and Coronado Drive (2 segments). Misc. Traffic Signals Locust at Oak traffic signal will be complete December 1, 2017. Construction scheduled to start January 2018 for Locust at Hickory, Elm at Oak, and Elm at Hickory. Transportation Division Facility Design plans are complete. Outcome of this facility is pending city-wide building needs assessment.Rail Quiet Zone – McKinney to Prairie Staff has retained the services of CTC, Inc. for conducting the diagnostic review of the 4 railroad crossings within the City and prepare/submit forms and applications to Federal Railroad Administration and Union Pacific. Consultant is working on initial coordination and will be updating the schedule shortly.Bonnie Brae Secondary Arterial Also referred to as Bonnie Brae North (Phases 4-6 of the overall Bonnie Brae project). Consultant contracts have been approved by City Council for Phases 4 and 5. Phase 5 being on Jan. 7, 2017. Phase 4 is at 40% design complete. Phase 5 is at 60% design. ROW Agent contract being pursued. ROW documents including parcel exhibits and legal descriptions are complete. Phase 6 does not have a design contract currently.Misc. Sidewalks Sidewalk projects complete or nearly complete:1. Bell Ave. Sidewalk (McKinney to Mingo) $120,000 – Construction 100% complete.2. Hickory St. Sidewalk at Exposition $35,000 – Construction completed. 3. Loop 288 Sidewalk at Denton Crossing $25,000 – Construction complete. 4. Paisley Sidewalk (Mack to Summer Oaks) $28,000 – Construction complete.5. Mack Dr. Sidewalk $25,000 – Construction complete. 6. Oakland St. Sidewalk $45,000 – Awaiting DME relocation. Design complete. 7. Windsor Sidewalk $100,000 – Construction 90% completeProjects on the Sidewalk List have been ranked. Projects to move forward with available funding to design and construction have been identified from the ranked list of projects. Those projects will be designed by outside consultant, expected to be under contract starting in January 2018.Proposition 1 – Street Improvements
2014 GO BOND PROGRAM UPDATEProgram Description Staff CommentsHickory Creek Road – FM 2181 to Riverpass Consultant design contract executed. Design underway. Contract amendment processed in July. Construction plans are 90% complete. Real Estate Group working on obtaining temporary construction easements. Morse Street Expansion Design contract will be negotiated and executed once selections are made from the new Professional Engineering Services RFQ solicitation.Ruddell Extension Consultant design at 60% complete. Working through drainage issues and UPRR coordination. Next steps for railroad coordination include providing an Exhibit A for the UPRR showing the proposed railroad crossing configuration and entering into a Preliminary Engineering Agreement with them. Misc. Roadways Hickory Creek Road between FM 2181 and FM 2499 $600,000 (this funding is the sum total of all bonds sold for this item to date plus the reimbursement ordinance amount) – Local match for RTR project. Fully executed agreement for project received from TXDOT. No design contract currently. Will be issued once selections are made from the new Professional Engineering Services RFQ solicitation.Proposition 1 – Street Improvements
2014 GO BOND PROGRAM UPDATEProgram DescriptionTotalProject CostBonds Issued Spent/EncumberedAvailableas of 9/30/17Fire Station #4 Remodel/Rebuild – Sherman Drive $5,020,000 $6,120,000 $6,411,895 ($291,895)Fire Station #3 Remodel/Rebuild – McCormick $8,620,000 $7,348,000 $2,494,432 $4,853,568Police Lobby Renovation $115,000 $115,000 $115,000 $0Relocation of Communications Center & Criminal Investigations Bureau$2,000,000 $2,000,000 $190,358 $1,809,642Police Firing Range Improvements with Ten Foot Berm Addition$485,000 $485,000 $168,274 $316,726Public Art for Public Safety $325,000 $325,000 $359,458 ($34,458)Fire Training Facility $0 $172,000 $198,260 ($26,260)Proposition 2 – Public Safety $16,565,000 $16,565,000 $9,937,677 $6,627,323
2014 GO BOND PROGRAM UPDATEProgram Description Staff CommentsFire Station #4 Remodel/Rebuild – Sherman Drive Construction phase is underway. Project is currently on scheduled and expect substantial completion July 2018.Fire Station #3 Remodel/Rebuild – McCormick Development design is complete and expect a presentation to City Council in December 2017. Construction documents expected to be completed in March 2018.Police Lobby Renovation Projects has been completed.Relocation of Communications Center & Criminal Investigations BureauThese two projects are progressing. They have been merged into one project for bids. Bid documents to Purchasing in mid-December.Police Firing Range Improvements with Ten Foot Berm AdditionWaiting on legal aspects of the donated property along Western Blvd. to be completed. Once the transfer of property is complete, the building project will move forward.Public Art for Public Safety The Firefighters Memorial is complete and a public dedication occurred on September 11, 2017.Fire Training Facility Construction began April 2017 and expect completion March 2018. Currently the first floor of a six floor training tower is nearing completion.Proposition 2 – Public Safety
2014 GO BOND PROGRAM UPDATEProgram DescriptionTotalProject CostBonds Issued Spent/EncumberedAvailableas of 9/30/17Eagle Drive Drainage Improvements Phase 2 $2,098,000 $2,098,000 $246,735 $1,851,265Hickory Street Drainage & Trunk Line System – Downtown Implementation Plan$600,000 $600,000 $89,966 $510,034Magnolia Street Drainage Phase 2 (Hinkle Project) $2,557,000 $2,557,000 $253,007 $2,303,993Proposition 3 – Drainage & Flood Control Improvements $5,255,000 $5,255,000 $589,708 $4,665,292
2014 GO BOND PROGRAM UPDATEProgram Description Staff CommentsEagle Drive Drainage Improvements Phase 2 Plan updates completed. ROW/easement acquisition in progress, 75% complete. TxDOT permit submitted and approved. Currently processing an amendment to the engineering design contract to include design of the reconstruction of Eagle Drive from Carroll Boulevard to Elm Street. Hickory Street Drainage & Trunk Line System – Downtown Implementation PlanEngineering design contract approved and executed in March 2017. Survey and subsurface utility engineering has been completed. Preliminary design has been completed and submitted for review. City of Denton is currently reviewing the preliminary design plans. Magnolia Street Drainage Phase 2 (Hinkle Project) Engineering design contract approved and executed in March 2017. Amendment No. 1 for the design contract was processed in August of 2017. Amendment number 1 added design for the reconstruction of Hinkle Drive and Windsor Drive to the project. Preliminary 75% design is complete as of August 2017 for the project including all the paving and drainage improvements. Additional geotechnical investigations are currently being added to the project in order to structurally design parts of the drainage system. Also, an easement is being acquired for placement of a water vault. Final design will continue as soon as the geotechnical results are in. Construction is currently anticipated to begin in July of 2018.Proposition 3 – Drainage & Flood Control Improvements
2014 GO BOND PROGRAM UPDATEProgram DescriptionTotalProject CostBonds Issued Spent/EncumberedAvailableas of 9/30/17Playground Replacements $890,000 $150,000 $39,517 $110,483Park Improvements (South Lakes, Lake Forest) $355,000 $55,000 $800 $54,200Sprayground $200,000 $200,000 $200,000 $0Water Works Park Additions – Wave Pool/Concession Stand $2,442,000 $2,442,000 $2,546,557 ($104,557)Vela Soccer Complex Phase II Construction $1,333,000 $1,333,000 $0 $1,333,000Public Art for Parks $180,000 $100,000 $100,000 $0Proposition 4 – Park System Improvements $5,400,000 $4,280,000 $2,898,211 $1,381,789
2014 GO BOND PROGRAM UPDATEProgram Description Staff CommentsPlayground Replacements Evers Park playground completed. Staff is working the additional cost proposals for the remaining six playground replacements. Funding for Denia, Fred Moore, and Milam Parks has been advanced. Acquisition options are currently being explored with purchase and installation projected in the third quarter of FY 17-18.Park Improvements (South Lakes, Lake Forest) The shelter and basketball court construction at Lake Forest & Milam Parks were completed via an endowment from a private foundation along with matching funds.Sprayground The splash pad at Carl Young Park has been completed. Additional funding of approximately $16,000 from Park Development funds was used to supplement the original budget. Ribbon cutting will be scheduled Spring 2018. Water Works Park Additions – Wave Pool/Concession Stand Substantially complete – working on two punch list items (erosion control and a water leak).Vela Soccer Complex Phase II Construction 12/1/17 starting permit application and construction documents sent to Purchasing to start the bid process. Estimate at Completion dollar amount is the construction cost ONLY. Additional funding will be needed for other expenditures.Public Art for Parks The Moroles sculpture was installed in the City Hall Courtyard September 2016. Council approval of the purchase of James Surls sculpture on May 23, 2017. Installation was completed in October 2017 at the Civic Center. Proposition 4 – Park System Improvements