The URL can be used to link to this page

Home My WebLink AboutCC 1995-04-10 Agendas N@)RTH RICH LAND HILLS April 7 I 1995 of the City Secretary ITEM ADDED TO THE APRIL 10, 1995 CITY COUNCIL AGENDA: *18a. PU 95-30 Professional Services Contract for Construction Materials Engineering and Testing for City Hall Project //:.;];~- - . . . Ii (/:>t2i721êla' ~ Assistant City Secretary POSTED Lj-1-q5 Date Ç).ao pm. Time _"_ City Secretary By C? -NßÁ:~ ~-,_..~---_.- )1 N.E. Loop 820 P.O. Box 820609 to Jrth Fiichland Hills, Texas 76182-0609 USA ,-5502 FAX (817) 581-5516 CITY OF NORTH RICH LAND HILLS PRE-COUNCIL AGENDA APRIL 10,1995 - 6:30 P.M. For the Meeting conducted at the North Richland Hills City Hall Council Chambers, 7301 Northeast Loop 820. NUMBER ITEM ACTION TAKEN 1. IR 95-50 Covers for Recycling Bins ( 5 Minutes) 2. GN 95-49 Revised Policies for Municipal Cable Television (Agenda Item No. 10) (10 Minutes) 3. GN 95-52 Repealing Ordinance No. 794, Regulating the Discharge of Firearms - Ordinance No. 2045 (Agenda Item No. 13) (5 Minutes) 4. GN 95-55 Teen Court Coordinator - Clerical Supervisor (Agenda Item No. 16) (5 Minutes) 5. PW 95-18 Award of Bid for Restoration of Old Utility Shop Building (Agenda Item No. 21) (5 Minutes) 6. Other Items Page 2 NUMBER ITEM ACTION TAKEN 7. *Executive Session ( 5 Minutes) - The Council may enter into closed executive session to discuss the following: A. Consultation with attorney under Gov. Code §551.071 : Consider Watauga vs. NRH Consider Seymour vs. NRH I 8 I Adjournment - 7:20 p.m. I I *Closed due to subject matter as provided by the Open Meetings Law. If any action is contemplated, it will be taken in open session. CITY OF NORTH RICHLAND HILLS CITY COUNCIL AGENDA APRIL 10,1995 - For the Regular Meeting conducted at the North Richland Hills City Hall Council Chambers, 7301 Northeast Loop 820, at 7:30 p.m. The below listed items are placed on the Agenda for discussion and/or action. 1. Items marked with an * are on the consent agenda and will be voted on in one motion unless a Council Member asks for separate discussion. 2. The Council reserves the right to retire into executive session concerning any of the items listed on this Agenda, whenever it is considered necessary and legally justified under the Open Meetings Act. 3. Persons with disabilities who plan to attend this meeting and who may need assistance should contact the City Secretary's office at 581-5502 two working days prior to the meeting so that appropriate arrangements can be made. NUMBER ITEM ACTION TAKEN 1. Call to Order 2. Invocation 3. Pledge of Allegiance 4. Minutes of the Regular Meeting March 27, 1995 5. Presentations by Boards & Commissions Beautification Commission Minutes Page 2 NUMBER ITEM ACTION TAKEN 6. Presentation of Proclamations - Mayor Brown 1. National Organ and Tissue Donor Awareness week 2. Appreciation to Citicable 3. National Public Safety Telecommunications Week 7. Removal of Item(s) from the Consent Agenda 8. Consent Agenda Item(s) indicated by Asterisk (9, 10, 13, 14, 15, 16, 17, 18,19,20,21) *9. PZ 95-05 Request of Glen Good to Rezone Tract A, Block 25, Holiday North Addition, from R-7-MF Multi-Family Residential to a Planned Development for an Assisted Living Center (Located in the 7800 Block of North Richland Boulevard) - Ordinance No. 2043 (Postponed at the March 27, 1995 Council Meeting) *10. GN 95-49 Revised Policies for Municipal Cable Television 11. GN 95-50 Consideration of Action on all Matters Pertaining to the Aware and Sale of $6,000,000 in General Obligation Bonds - Ordinance No. 2046 Page 3 NUMBER ITEM ACTION TAKEN 12. GN 95-51 Consideration of Action on all Matters Pertaining to the Award and Sale of $2,000,000 in Sales Tax Revenue Bonds for Park and Recreation Purposes - Resolution No. 95-19 *13. GN 95-52 Repealing Ordinance NO.794, Regulating the Discharge of Firearms - Ordinance No. 2045 *14. GN 95-53 Authorized Investment Officers - Resolution No. 95-21 *15. GN 95-54 Ratification of Action Taken in Executive Session March 27, 1995 on Seymour vs. NRH *16. GN 95-55 Teen Court Coordinator - Clerical Supervisor *17. PU 95-28 Award Bid for Library Lighting Modifications *18. PU 95-29 Award Bid for Tractor/Backhoe *19. PW 95-16 Award of Engineering Services for Holiday Heights Elementary School Traffic Safety Improvements Page 4 NUMBER ITEM ACTION TAKEN *20. PW 95-17 Approve State of Texas Standard Utility Agreement for Interstate Highway 820 Interchange Project, Phase II - Resolution No. 95-20 *21. PW 95-18 Award of Bid for Restoration of Old Utility Shop Building 22. Citizens Presentation 23. Adjournment POSTED ¿J-1-C/S Date /0: .3& a. ./fl. Time ------.,.,. City Secretary By,g N~ -- .-.-..--,.--.---...... INFORMAL REPORT TO MAYOR AND CITY COUNCIL N IR 95-51 O. .~ ~ Date: T Subject: April 10, 1995 Amundson Road This week I visited with Dale Hill of E-Systems Employee Trust. I proposed to him a joint project between our City and his group. He has agreed to participate in the extension of Amundson from Cardinal Lane to the new Watauga Road. We will start now to coordinate with TxDOT for this intersection. We will bring you an action item for funding soon. Please call if you have any questions. Respectfully submitted, C'At!f&~ City Manager CAS:ph '~- ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 95-50 '- ~ Date: T Subject: April 3, 1995 Covers for Recycling Bins At the March 27 Council meeting, a representative showed Council members a cover that could be used for recycling bins which VIIOuld keep recyclable materials from being scattered, help control odors, and allow more materials to be included in the bins. Council requested that staff review this and prepare recommendations. Several civic and community groups, such as the Beautification Committee, the Boy Scouts, the Friends of the Library, senior citizen's organizations, and others, VIIOuld likely be interested in taking on a project of selling these recycle bin covers. In order to get a wide distribution of these, it would seem that some type of service organization going door to door VIIOuld be the most effective way to distribute such products. It is therefore our suggestion that we make this information available to several service groups for a fund raising project and that the individual groups be responsible for the distribution and collection of their Q\M1 sales. It is further our recommendation that the City not get into the retail sale of these recycle bin covers, nor become the sales outlet and money collector for another organization. However, should Council decide that the City should sell these, then it VIIOuld be our recommendation that we sell them and let any profits off of sales go to the General Fund. RECOMMENDATION: It is recommended that recycle bin covers be sold by non-profit service organizations, and that these organizations be responsible for their own distribution and collections rather than the sale by the City. CS/po ISSUED BYTHE CITY MANAGER NORTH RICHLAND HILLS, TEXAS MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, HELD IN THE CITY HALL, 7301 NORTHEAST LOOP 820 - MARCH 27, 1995 - 7:30 P.M. 1. CALL TO ORDER Mayor Brown called the meeting to order March 27, 1995 at 7:30 p.m. ROLL CALL Present: Tommy Brown Mark Wood Lyle E. Welch Mack Garvin Jo Ann Johnson Ray Oujesky Byron Sibbet Linda Spurlock Mayor Mayor Pro Tern Councilman Councilman Councilwoman Councilman Councilman Councilwoman Staff: C.A. Sanford Randy Shiflet Larry Cunningham Jeanette Rewis Rex McEntire City Manager Assistant City Manager Assistant City Manager City Secretary Attorney 2. INVOCATION Councilman Oujesky gave the invocation. 3. PLEDGE OF ALLEGIANCE 4. MINUTES OF THE REGULAR MEETING FEBRUARY 27, 1995 APPROVED March 27, 1995 Page 2 Mayor Pro Tern Wood moved, seconded by Councilwoman Johnson, to approve the minutes of the February 27, 1995 meeting. Motion carried 7-0. 5. MINUTES OF THE EMERGENCY MEETING MARCH 9, 1995 APPROVED Councilman Oujesky moved, seconded by Mayor Pro Tern Wood, to approve the minutes of the March 9, 1995 Emergency City Council Meeting. Motion carried 7-0. 6. MINUTES OF THE SPECIAL MEETING MARCH 9, 1995 APPROVED Councilman Oujesky moved, seconded by Mayor Pro Tern Wood, to approve the minutes of the March 9, 1995 Special City Council Meeting. Motion carried 7-0. 7. PRESENTATIONS BY BOARDS & COMMISSIONS A. BEAUTIFICATION COMMISSION B. PARKS AND RECREATION BOARD No action needed. Ms. Jane Dunkelberg, Beautification Commission Member, advised of the Bag-a-Thon Saturday, April 1. 8. REMOVAL OF ITEM(S) FROM THE CONSENT AGENDA None. March 27,1995 Page 3 9. CONSENT AGENDA ITEM(S) INDICATED BY ASTERISK (15,17,18,19,20,21,23,24,26,27,28,29,30, 31,32,33,34,35,36,37,38,39,40,41,42,43) APPROVED Councilman Oujesky moved, seconded by Councilwoman Spurlock, to approve the Consent Agenda. Motion carried 6-0; Mayor Pro Tern Wood abstaining due to conflict of interest on Items 15 and 18. 10. PZ 94-22 PUBLIC HEARING TO CONSIDER THE REQUEST OF LYNN AND DORIS WARREN TO REZONE TRACT 1 D, CONDRA SURVEY, ABSTRACT 310, FROM AG AGRICULTURE TO R-2 SINGLE FAMILY RESIDENTIAL - ORDINANCE NO. 2039 (LOCATED AT 7408 BURSEY ROAD) APPROVED Mayor Brown opened the Public Hearing and called for anyone wishing to speak in favor to come forward. Mayor Brown called for anyone wishing to speak in opposition to come forward. There being no one wishing to speak Mayor Brown closed the Public Hearing. Mayor Pro Tern Wood moved, seconded by Councilman Oujesky, to approve Ordinance No. 2039. Motion carried 7-0. 11. PZ 95-01 PUBLIC HEARING TO CONSIDER THE REQUEST OF OK SOD FOR A SPECIAL USE PERMIT FOR A GARDEN CENTER AND TRUCK RENTAL ON LOT 18C, BLOCK 18, CLEARVIEW ADDITION- ORDINANCE NO. 2040 (LOCATED AT 5100 DAVIS BOULEVARD) APPROVED March 27, 1995 Page 4 Mayor Brown opened the Public Hearing and called for anyone wishing to speak in favor of the request to come forward. Mr. Kevin Keck, owner, appeared before the Council and spoke in favor of the request. Mayor Brown called for anyone wishing to speak in opposition to the request to come forward. There being no one else wishing to speak Mayor Brown closed the Public Hearing. Councilman Garvin moved, seconded by Councilwoman Spurlock, to approve Ordinance No. 2040 with the stipulation the permit be reissued in 18 months and a site barring fence installed around the trailer and back yard. Motion carried 7-0. 12. PZ 95-03 PUBLIC HEARING TO CONSIDER THE REQUEST OF THOMAS DUER TO REZONE LOT 2, BLOCK 25, CLEARVIEW ADDITION, FROM PLANNED DEVELOPMENT NO. 11 TO C-2 COMMERCIAL- ORDINANCE NO. 2041 (LOCATED AT 7905 GRAPEVINE HIGHWAY) APPROVED Mayor Pro Tern Wood abstained from discussion and voting because of conflict of interest. Mayor Brown opened the Public Hearing and called for anyone wishing to speak in favor of the request to come forward. Dr. Tom Duer, owner, spoke in favor of the request. Mayor Brown called for anyone wishing to speak in opposition to come forward. There being no one else wishing to speak Mayor Brown closed the Public Hearing. Councilman Sibbet moved, seconded by Councilman Garvin, to approve Ordinance No. 2041. Motion carried 6-0; Mayor Pro Tern Wood abstaining. March 27, 1995 Page 5 13. PZ 95-04 PUBLIC HEARING TO CONSIDER THE REQUEST OF QUADRANGLE DEVELOPMENT TO REZONE A PORTION OF TRACT A, BLOCK 7, CENTURY OAKS ADDITION FROM C-1 COMMERCIAL TO R-3 SINGLE FAMILY RESIDENTIAL - ORDINANCE NO. 2042 (LOCATED IN THE 7800 BLOCK OF STARNES ROAD) APPROVED Mayor Brown opened the Public Hearing and called for anyone wishing to speak in favor of the request to come forward. Mr. Walter Elliott, representing the owners, appeared before the Council and spoke in favor of the request. Mayor Brown called for anyone wishing to speak in opposition to the request to come forward. There being no one else wishing to speak Mayor Brown closed the Public Hearing. Councilwoman Johnson moved, seconded by Councilman Garvin, to approve Ordinance No. 2042 with the stipulation the assessment on Starnes Road and Smithfield Road be paid before issuance of building permits. Motion carried 7-0. 14. PZ 95-05 PUBLIC HEARING TO CONSIDER THE REQUEST OF GLEN GOOD TO REZONE TRACT A, BLOCK 25, HOLIDAY NORTH ADDITION FROM R-7-MF MULTI-FAMILY RESIDENTIAL TO A PLANNED DEVELOPMENT FOR AN ASSISTED LIVING CENTER - ORDINANCE NO. 2043 (LOCATED IN THE 7800 BLOCK OF NORTH RICHLAND BOULEVARD) POSTPONED Mayor Pro Tern Wood abstained from discussion and voting because of conflict of interest. Mayor Brown opened the Public Hearing and called for anyone wishing to speak in favor to come forward. Mr. Glen Good, applicant, appeared and spoke in favor of the request. March 27, 1995 Page 6 Mayor Brown called for anyone wishing to speak in opposition to come forward. There being no one else wishing to speak Mayor Brown closed the Public Hearing. Councilwoman Johnson moved, seconded by Councilman Oujesky, to postpone Ordinance No. 2043 until the April 1 0, 1995 meeting. Motion carried 6-0; Mayor Pro Tern Wood abstaining. *15. PS 95-03 REQUEST OF MAY DEPARTMENT STORE COMPANY FOR REPLA T OF LOT 3, BLOCK C, CALLOWAY FARM ADDITION (LOCATED IN THE 7600 BLOCK OF GRAPEVINE HIGHWAY) APPROVED 16. PS 95-04 REQUEST OF DORIS AND LYNN WARREN FOR FINAL PLAT OF OAKRIDGE ESTATES (LOCATED IN THE 7408 BURSEY ROAD) APPROVED Mayor Pro Tern Wood moved, seconded by Councilman Oujesky, to approve PS 95-04. Motion carried 7-0. *17. PS 95-05 REQUEST OF B.H. & L. JOINT VENTURE FOR AMENDED PLAT OF FOREST GLENN ADDITION (LOCATED IN THE 8200 BLOCK OF NORTH TARRANT PARKWAY) APPROVED *18. PS 95-07 REQUEST OF REBEL PROPERTIES FOR FINAL PLAT OF EDEN ADDITION, THIRD FlUNG (LOCATED IN THE 8600 BLOCK OF HIGHTOWER DRIVE) APPROVED *19. GN 95-42 REQUEST FOR EXTENSION OF PERMIT FOR USE OF GREEN VALLEY RACE TRACK APPROVED March 27, 1995 Page 7 *20. GN 95-43 APPROVE CORRECTED WARRANTY DEED FOR LAND TRADE BETWEEN CITY OF NORTH RICHLAND HILLS AND J.B. JOHNSTON AFFECTING IRON HORSE GOLF COURSE - RESOLUTION NO. 95-17 APPROVED *21. GN 95-44 INTERLOCAL AGREEMENT FOR NORTHEAST TARRANT COUNTY STREET CRIMES UNIT- RESOLUTION NO. 95-18 APPROVED 22. GN 95-45 APPOINTMENT TO BOARD OF ADJUSTMENT APPROVED Councilman Garvin moved, seconded by Councilman Sibbet, to appoint Mr. Jimmy Bellomy to Place 2 on the Board of Adjustment. Motion carried 7-0. *23. GN 95-46 ALTERNATIVE FUELS PROGRAM - RESOLUTION NO. 95-16 APPROVED *24. GN 95-47 CONVERSION TO TELEMETRIC WATER METERS APPROVED 25. GN 95-48 NAMING NEW ROAD AT MALL RODGER LINE DRIVE - ORDINANCE NO. 2044 APPROVED Councilwoman Johnson moved, seconded by Councilman Sibbet, to approve Ordinance No. 2044. Motion carried 7-0. *26. PU 95-12 AWARD BID FOR TANDEM TRUCKS APPROVED *27. PU 95-13 AWARD BID FOR RADIOS APPROVED *28. PU 95-14 AWARD BID FOR AERATOR AND MOWERS APPROVED *29. PU 95-15 AWARD BID FOR MISCELLANEOUS WATER LINE REPLACEMENT MATERIALS APPROVED *30. PU 95-16 AWARD CONTRACT FOR TELEPHONE SYSTEM FOR NRHzO APPROVED *31. PU 95-17 AWARD BID FOR COMPUTER EQUIPMENT APPROVED *32. PU 95-18 AWARD BID FOR PRINTERS APPROVED March 27, 1995 Page 8 *33. PU 95-19 AWARD BID FOR LOUNGERS, TABLES AND CHAIRS APPROVED *34. PU 95-20 AWARD BID FOR PICNIC TABLES APPROVED *35. PU 95-21 AWARD BID FOR KITCHEN EQUIPMENT APPROVED -'"'"_._-~-- ._-~ -"'----,_._..,,"~.._,,_.,--~--~-------~"-"----- March 27, 1995 Page 9 *36. PU 95-22 AWARD BID FOR TRASH RECEPTACLES APPROVED *37. PU 95-23 AWARD BID FOR OFFICE FURNITURE APPROVED *38. PU 95-24 BEVERAGE VENDOR REQUEST FOR PROPOSAL - DR. PEPPERl7-UP BOTTLING COMPANY OF TEXAS APPROVED *39. PU 95-25 SOFT SERVE YOGURT VENDOR REQUEST FOR PROPOSAL - SUNBEL T DISTRIBUTORS, INC. APPROVED *40. PU 95-26 AWARD CONTRACT FOR COMPUTER SYSTEM FOR NRH20 WATER PARK APPROVED *41. PU 95-27 AWARD CONTRACT FOR SECURITY AND FIRE ALARM FOR NRH20 WATER PARK APPROVED *42. PW 95-14 RATIFY CHANGE ORDER NO.2 FOR PRECINCT LINE ROAD UTILITY ADJUSTMENTS, PHASE I APPROVED *43. PW 95-15 AWARD OF BID FOR WATAUGA ROAD UTILITY ADJUSTMENTS FROM DAVIS BOULEVARD TO PRECINCT LINE ROAD APPROVED March 27, 1995 Page 10 44. CITIZENS PRESENTATION None. 45 ADJOURNMENT Mayor Brown adjourned the meeting. Tommy Brown - Mayor ATTEST: Jeanette Rewis - City Secretary -_. --."._-_._---------~-_.._'~._-~--'~"_.._~_..".~.._~._...-,._,,- MINUTES OF THE BEAUTIFICATION COMMISSION OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, HELD IN THE PRE-COUNCIL CHAMBERS, CITY HALL, 7301 NORTHEAST LOOP 820 February 21, 1994 ATTENDANCE Present: Deloris Pultz Emily Ward Jane Dunkelberg Patsy Tucker Alice Scoma Jeanne Lueck Chairperson Vice Chairperson Commission Member Commission Member Commission Member Commission Member STAFF Tim Hightshoe Christina Lopez Parks/Public Grounds Superintendent Secretary Absent: Billie Sommermeyer Glenn Nerwin Commission Member Commission Member 1. CALL TO ORDER Ms. Pultz called the meeting to order February 21, 1995 at 7:00 p.m. 2. APPROVAL OF THE MINUTES Ms. Ward made a motion, seconded by Ms. Dunkelberg, to approve the minutes, as amended, of the January 17,1995 Beautification Commission meeting. Motion carried 5-0. 3. ARBOR DAY CELEBRATION Ms. Dunkelberg made a motion, seconded by Ms. Lueck, to hold an Arbor Day Celebration on March 7, 1995 at 10:30 a.m. at the Dan Echols Senior Adult Center to plant a Chinese Pistache tree. Mr. Hightshoe will be responsible for purchasing the tree. Motion carried 6-0. 4. VOLUNTEER APPRECIATION BANQUET Ms. Dunkelberg made a motion, seconded by Ms. Ward, to hold a Volunteer Appreciation Banquet on March 24, 1995 at 7:00 p.m. at the Dan Echols Senior Adult Center. Mailing lists for invitations and certificates should be submitted to Ms. Lopez as soon as possible. The menu will be a Picnic Theme. Motion carried 6-0. 5. GREAT TEXAS TRASH OFF AND BAG-A-THON Discussion was held concerning the Great Texas Trash Off and Bag-a-Thon. Recycling is the major theme for the Bag-a-Thon this year. Ms. Dunkelberg made a motion, seconded by Ms. Ward, to contact Laidlaw to request permission to place banners on the recycling trucks that service the North Richland Hills area to advertise the Bag-a- Thon. Mr. Hightshoe will contact Fast Signs to see if they can donate the signs. Motion carried 6-0. Ms. Lueck made a motion, seconded by Ms. Ward, to approved the following items: 1. Solicit a business to donate t-shirts for the GTTO. 2. Distribute flyers to area businesses on state highways to encourage them to participate in the GTTO. 3. Distribute a press release promotion participation in the GTTO. 4. Purchase of pens or pencils with the Commission's name imprinted to be given away to volunteers. Motion carried 6-0. Ms. Ward will decorate a box to be placed at the NRH Recreation Center for the collection of eye glasses. This box will be in place from March 24 thru April 28, 1995. Ms Dunkelberg reminded the commission to bring their old latex paint and pantyhose to the Great Texas Trash Off on April 1 , 1995. 6. 1995 SOUTHWESTERN BELL REDIRECTORY PROGRAM Ms. Ward made a motion, seconded by Ms. Tucker, that the Commission participate in the Re-Directory program again this year. The dates for the 1995 Re-Directory program is July 22 thru August 31, 1995. A dumpster site will be selected and forwarded to Laidlaw. Motion carried 6-0. 7. "URBAN WATCH MONITOR" PRESENTATION Ms. Dunkelberg presented certificates to Emily Ward and herself as "Certified Urban Watch Monitor" presented by Texas Watch. 8. STAFF REPORTS Mr. Hightshoe updated the Commission on the following items: . The Parks and Public Grounds division have been pulling plant material from around City Hall to prepare for the renovations. · The cleanup at Glenview/Dawn future park site is going well. The department received a phone call regarding some of the large trees that were cut down, Mr. Hightshoe assured the Commission that only two large trees were cut down, one was diseased and the other was unstable. Lower limbs were also cut to alleviate any safety concerns. The Commission would like to know what is planned for that area, and when design/construction will begin. · Green Valley Community Park is under construction. 9. DISCUSSION OF OTHER ITEMS/CITIZEN INPUT Ms. Dunkelberg is concerned about the illegal dumping at Fossil Creek, she has observed that asphalt has been dumped and would like to know if there is anything that can be done to prevent this. A workshop is scheduled for March 7, 1995, areas to be discussed will be the KTB Application and the Volunteer Appreciation Banquet. Ms. Dunkelberg explained how to calculate the KTB volunteer hours and in-kind service hours. Ms. Dunkelberg was contacted by KTB inquiring if the Commission would be able to help with the Annual Convention. They are looking for Commission and Boards to help with registration, provide decorations, or help in any way. The Commission feels they could possibly donate time. Ms. Dunkelberg will contact KTB. 10. ADJOURNMENT Ms. Pultz adjourned the meeting at 8:02 p.m. Dfl~(JJML¡ Chairperson ~/IA¡J/;At} -()¿!épfiil hristina Lopez Secretary ~~ 1r City of ~orth 1lichland Rills WHEREAS, one 06 ,the mo~t meal1.ing6uf M£t.6 .that one human bung c.an be.óf.:ow upon anothvr. .u., the plteuoU.6 g~6t 06 li6e; and WHEREAS, the need 601t OItganb and fuMe úM ~Ultpa.6~ the numbvr. donated eac.h yeM; and WHEREAS, U6e G~út OltgaH Vonation Cer..tvr., the Uon' ~ Eye Bank., Commul'Ú-ty T .u.,~ue Svr.ÚC.1U and the Na;Üol1C'J:. K~dney FOtU1dation 06 Texc!.6 cv:.e ~nvof..ve.d Ùt and .6Uppoltt oltgan dona.;Üon pltogltctm6 ~n TaftJLan.::: and .6U/[)touncüng c.oun.ulU 06 Noltth Texa.6; and WHEREAS, .:he above named gltOup~ Me membeJr..6 that ~uppoltt the e660w 0& the COltW..ion on OJtgan a.nd T.u.,.6ue VO!101t A¡,V<VtenlU.6 06 Noltth Texa.6; and WHEREAS, the c.alendM lfeM 1994, OItgan and .tú..~ue Itec.ove/uj ~nCJte.a.6 ed ~ub.6,tar.;t.i.aLty &ltom plteÚoU.6 yeaM. NOW, THEREFORE, I, Tommy Bltown, MayoJt 06 the C~y 06 Noltth RÙhtand H-i.fh, Texo..6 do hvr.eby pltor..1.iÚm Apftil 17- 23, 1995 a.6 "NATIONAL ORGAN ANV TISSUE VONOR AWARENESS WEEK" in the CÜy On Nouh R.tc.htand H-i.LU and Ultge all w.i.zenb, hea.l:t.h c.Me plt061U.6~ona1..6, educ.a..toltó, mecüa and public. and pJÚvate oltgalÚza.t.i.Onb c.onc.vr.ned w.i;th oltgan donation and tJtanbp.taYLto.:ûon :to jo~n U.6 ~n ~uppotr..ting tlU..6 humarovt-taJ"J.an e6601tt. ",~0;'·1.'J./~A :'*:'\- " '~~.- ~..... . ~>t.._ ..:~-~ "f ' ~___ ;". ' l'll " . " " .: ,'"'' 'i,,-..:;~).. IN WITNESS WHEREOF, I have hvr.eun.:to .6 e..t mlf hand and c.au..6 ed the .6 eal 06 :the C-i..:tlf 06 Noltth R.tc.htand H-i.ll..6 to be a66Úed tfU.6 the 10th day 06 Apftil, 1995. /. .1 (,'.' ~ hJ~ Tom.lf~aYOIt ~ City of ~orth ~chland Hills WHEREAS, Thou!.ancU 06 de.CÜc.ct:te.d public. !.a 6 e..ty .te.te.c.ommurU,c.a.tioM pe.J!ÅOfme.t da.ilfj .6vwe .the. ÚÜZe.M 06 .the. UnUe.d S.:tct:tv.. by aMweJÚng .the..iA .te.J..e.phone. c.a.U.6 60-'L polic.e., 6.úte. a.nd eJnVtge.nc.y mecüc.a1. .6VtvÙu and dMpct:tc.lúng .the. a.pp-'LO plLÚt.te. a.ð.6.t.6.tanc.e. a.ð quic.k.ly a.ð po.6Ûble.; and WHEREAS, The. CJU..t-i..c.ai 6un~0Y!.6 PVt60fr..me.d by p-'LO 6 U.6'¿onai public. .6 0.6 e..tlj .te.J..e.c.ommurU,c.a..ti.o M pe.J!Å 0 nne.J.. aLl, 0 '¿nC'.lude .tho.6 e. -'Le.J..ct:te.d ;~o 6Mv..bLy and c.o M Vtva.tio n 0PVULÛOM, iUghway .6a.6e..tfj and mGÚf'I~e.nanc.e. o.et.i..viliv.., Gi.Y!d many o.thVt Opvr..a.:ûOM pVttMme.d by 6edvz.ai, .6.tct:te., c.oun.:ty and mUrU,úpai govVtlwe.n.t age.núv..; and WHEREAS, P-'L06v..Ûonai public. .6 0.6 e..ty .te.te.c.ommurU,c.a.tioM pe.J!Åonne.t WMk .to -impltOve. .the. e.mVtge.nc.!{ -'LU po M e. c.a.po.bili:Uv.. 06 thu e. c.ommurU,c.a.:Uo n .6 Y.6.:te.m.6 .thJtoug h .the..iA le.adVt.6iUp and p~úpa.ticn '¿n .tJt.a.irU,ng p-'Log-'La.m.6 and o.thCJl aet.i..vLti.v.. p-'Lov.¿de.d b!f .the. MMúa;tÙn 06 Public.- sa. 6 e..:ty C ommuÛc.a.tio M 06 MúczL6 - I I'L.tVtna.tio nai; and WHEREAS, The. M.6oc.-iJLt[on 06 Public.-Saúe..ty C ommu.¡Úc.a.tio M 06 Múal.6 - I I'L.tVtrut.:t.<.o nai I nc.., an MgarU,za.tio n 06 mMe. .than 10,000 pe.ople. e.ngage.d Út .:the. dv..'¿gn, Ùu..ta..Ua...Uo nand 0 PVta.tio n 06 eJnCJlg e.nc.y -'Lv.. po 1'!.6 e. c.ommurU,c.o,..t¿o n.6 .6Y.6.:te.m6, ha.ð .6 e..t a.ð.¿de. .the. .6 e.c.o nd wee.k '¿n Ap~ to -'Le.c.ogrU,ze. public. .6a6e..ty te.te.c.o~murU,c.~or~ pe.J!Åonf!å ctYtd .thÚlt CJlU.c.1.ai -'Lole. '¿n :the. pI1.0~e.et.i..OYl. 06 U6e. and plWpVr.ttj. NOW, THEREFORE, I, Tommy BI1.cwn, Mayo-'L 06 .the. C-<-ty 06 NolLth 1Uc.h.e.and H.i..U..6, Te.XM do hVte.by p-'Loc1.cúm the. we.ek 06 Ap~ 9-15, 1995, a,ð: "NATIONAL PUBLIC SAFETV TELECOMMUNICATIONS WEEK" '¿n NolLth RÙhi.G.nd tu'1.l.6, '¿n ho nOJt. and -'Le.c.og rU,.t.i.o n 0 ú OWl pubUc. .61J.6e.ty tele.c.ommur"¿c.a.tioM pe.J!ÅonneX and the. v-i...:ta.[ C.On.tJt..¿bu.;t.¿OM .they make. to ;the .6a6e..ty and wetl-be-<-ng o~ OWl cLti..z e.M . IN WITNESS WHEREOF, I have. hVte.u.nto .6 e..t my hand and c.a.u.6e.d .the .6e.ai ·06 the. C.¿;ty 06 NolLth P.Ùh.e.aY'.d Hil..t6 , to be. a66'¿xe.d .t~ .the 10th day 06 ApJt.i1., 199 CITY OF NORTH RICHLAND HILLS Department: Planning and Inspections ~ Council Meeting Date: 4/10/95 ~bject: Request of Glen Good to rezone Tract A, Block 25, Agenda Number: PZ 95-05 Holiday North Addition, from R-7-MF Multi-Family Residential to a Planned Development for an Assisted Living Center. (Located in the 7800 block of North Richland Boulevard) Ordinance No. 2043 This item was postponed by the City Council at the March 27, 1995 meeting. Mr. Glen Good has submitted an application for a Planned Development district on property located at the northwest corner of Ross Road and North Richland Boulevard. He intends to construct an Assisted Living Center on the site. The property is currently zoned R-7-MF Multi-Family Residential. Since an Assisted Living Center is an uncommon type of land use activity, the developer is requesting a Planned Development designation to allow the use. The proposed Assisted Living Center is a single story brick structure housing 80 beds. The proposed building is shaped in the form of an "H", and a courtyard area is provided in between each wing. The following are other items associated with this request: 1. The applicant has submitted a site plan of the property (see attached site plan). The site plan shows all items as required by the Zoning Ordinance with the exception of sign elevations and locations. The property is approximately 4.7 acres in size. The Assisted Living Center will occupy a 129,000 square foot building site on the property. '- 2. Access to this property will be from North Richland Boulevard and Ross Road. The'applicant proposes one driveway on North Richland Boulevard and two driveway locations'on Ross Road. All driveways Will be designed and constructed in accordance with Public Works design criteria. 3. There are 41 parking spaces provided on the property. The Ordinance requires 40 spaces (1.5 spaces for each 3 beds). 4. The Landscaping Regulations require that 15% of the lot, or its equivalent, be maintained as a landscaped area. The applicant proposes to provide 46% of the building site area as a landscaped area. This area will be provided with an underground sprinkler system: Finance Review Source of Funds: Acct. Number Bonds (GO/Rev.) Sufficient Funds Available 1peratlng Budget - Other . ;"'" ß- '. .-.. .... ., "~dL-¡;:~ ß'&1 ~ Depart Head Signature CITY COUNCIL ACTION ITEM . Finance Dorector Page 1 of 5. Two exterior courtyard areas will be provided between the wings of the buildings for residents of the center. The courtyards will be accessible from the building or through gates located at each end. 6. Sidewalks will be provided along Ross Road and North Richland Boulevard. A similar request was approved by the City Council on property located on Glenview Drive. However, Mr. Good determined that it was not feasible to build this product at that location. Staff will contact the owners of the property on Glenview Drive within the next few weeks to determine if they wish to seek a zoning change to return the property to its previous R-3 zoning designation. The Planning and Zoning Commission considered this item at its March 9, 1995 meeting and recommended approval. The City Council conducted a Public Hearing for this request at its March 27, 1995 meeting, and postponed action on this request until the April 1 0, 1995 meeting. RECOMMENDATION: It is recommended that the City Council consider the recommendation of the Planning and Zoning r.ommission. - -,,"- ORDINANCE NO. 2043 AN ORDINANCE BY THE CITY OF NORTH RICHLAND HILLS, TEXAS, AMENDING ORDINANCE NUMBER 1874, THE COMPREHENSIVE ZONING ORDINANCE, TO ESTABLISH PLANNED DEVELOPMENT DISTRICT NUMBER TWENTY; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Tract A, Block 25, Holiday North Addition, consisting of approximately 4.7 acres of land located at the northwest corner of North Richland Boulevard and Ross Road, is currently zoned R-7-MF Multi-Family Residential; and WHEREAS, the Planning and Zoning Commission has reviewed a proposal for an Assisted Living Center for the elderly; and WHEREAS, the Planning and Zoning Commission has recommended that the property be rezoned as a Planned Development District to provide land use compatibility with adjacent properties; and WHEREAS, after appropriate notice and public hearing, the following recommendation is submitted to the City Council of the City of North Richland Hills, Texas, by the Planning and Zoning Commission; and WHEREAS, the Planning and Zoning Commission of the City of North Richland Hills, Texas, has forwarded a recommendation to the City Council for amendment of Ordinance No. 1874 and the Official Zoning Map by establishing Planned Development District Number Twenty, by changing the said Zoning Ordinance as set forth herein; now therefore BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: 1. THAT, Planned Development District Number Twenty be hereby established in the Case Number PZ 95-05, the following described property: BEING Tract A, Block 25, Holiday North Addition, an Addition to the City of North Richland Hills, Tarrant County, Texas, according to the plat recorded in Volume 388-130, Page 56, Plat Records, Tarrant County, Texas. This property is located at the northwest corner of North Richland Boulevard and Ross Road. 2. THA T, the development regulations for Planned Development District Number Twenty shall be as follows: 1. Purpose: Planned Development District Number Twenty is intended to allow an Assisted Living Center consistent with the development regulations contained herein. 2, Permitted Uses: Assisted Living Center, not to exceed 80 elderly units, contained within a single-story structure which has residential architectural characteristics. 3. Lot Area Requirements: a, Minimum Front Building Line: 25 feet b. Minimum Side Building Line: 15 feet c. Minimum Rear Building Line: 25 feet d. Maximum Structure Height: single story structure e. Maximum Lot Coverage: 50 percent 4. Site Plan: Attached as Exhibit A. 5. Fences: A six foot sight barring fence shall be constructed and maintained along the north property line. 6. Parking: As required by Article 7, Sections 700 and 710, Parking and Loading Requirements, Ordinance 1874, as amended. 7. Accessory Buildings: As required for the C-1 district by Article 6, Sections 600 F&G, Accessory Buildings, Ordinance 1874, as amended. 8. Masonry Requirement: As required for the C-1 district by Article 6, Section 600 B, Masonry Requirements, Ordinance 1874, as amended. 9. Landscaping Requirement: As required for the C-1 district by Article 9, Section 900, Landscaping Standards, Ordinance 1874, as amended. 10. Signs: As allowed for the in the R-7-MF Multi-Family Residential district by Article 8, Sign Regulations, Ordinance 1874, as amended. 11. Refuse Facilities: All refuse containers shall be screened from view of all adjacent properties and public streets. 3. THAT, the Official Zoning Map be redrawn to incorporate this zoning district boundary amendment and the herein described ordinance number be affixed to the property described herein. 4. THAT, all the regulations contained in the Zoning Ordinance Number 1874, as amended, which are not in conflict with the terms of this Planned Development District Number Twenty, shall remain in effect regarding this property. 5. SEVERABILITY CLAUSE. That it is hereby declared to be the intention of the City Council that the section, paragraphs, sentences, clauses and phrases of this ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared invalid or unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such invalidity or unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs or sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such invalid or unconstitutional phrase, clause, sentence, paragraph or section. 6. SAVINGS CLAUSE. That Ordinance Number 1874, the Comprehensive Zoning Ordinance of the City of North Richland Hills, Texas, as amended, shall remain in full force and effect, save and except as amended by this ordinance. 7. EFFECTIVE DATE. This ordinance shall be in full force from and after its passage. Ordinance No. 2043 Page 2 APPROVED BY THE PLANNING AND ZONING COMMISSION THIS 9th DAY OF MARCH, 1995. ~ø~ Secretary, Planning and Zoning éommission ~~)?:(J.~ Chairman, Planning and Zoning CommisSìón PASSED AND APPROVED BY THE CITY COUNCIL THIS 10th DAY OF APRIL, 1995. Mayor, City of North Richland Hills, Texas ATTEST: City Secretary City of North Richland Hills, Texas APPROVED AS TO FORM AND LEGALITY: Attorney for the City Ordinance No, 2043 Page 3 PZ Minutes - Page 2 March 9, 1995 Mr. Bowen stated the request does fit the description and purpos the R-3 zoning district. Mr. Bowen made the motion to approve PZ 95-04. Spicer. The motion carried 4-0. 3. PZ 95-03 Public Hearing to consider the request of Thoma Clearview Addition, from Planned Developm located at 7905 Grapevine Highway. er for to rezone Lot 2, Block 25, o. 11 to C-2 Commercial. This property is Vice-Chairman Barfield opened the come forward at this time. ic Hearing and called for those wishing to speak to Dr. Thomas Duer, 7312 Lo nderry Drive, came forward to speak. He stated his property is surrounded by comm I property. He stated when he constructed his vet clinic in 1981 the ordinance did not w that use and he had to seek a Planned Development. He stated the PO zoning onl ows for a vet clinic, and he would like to get the zoning changed to a district compati 0 what is surrounding him. Dr. Duer stated his type of business does not require the tr volume and intensity as a retail or commercial use. no one else wishing to speak, Vice-Chairman Barfield closed the Public . Spicer made the motion to approve PZ 95-03. The motion was seconded by Mr. Baxter. 4. PZ 95-05 Public Hearing to consider the request of Glen Good to rezone Tract A, Block 25, Holiday North Addition, from R-7-MF Multi-Family Residential to a Planned Development for an Assisted Living Center. This property is located in the 7800 block of North Richland Boulevard. Mr. Husband stated the request for a Planned Development is for an Assisted Living Center. He stated this use is not allowed in an R-7-MF district. He stated the Commission might consider rezoning the entire tract to a PO to prevent a portion of the lot from becoming non- conforming in relation to the multi-family regulations. Mr. Husband stated the developer would be able to amend his site plan as part of the PO if he does develop the remainder of the lot. Vice-Chairman Barfield asked what the difference between a planned development and a traditional zoning district is. Mr. Husband stated a Planned Development is a zoning district unto itself. He stated it allows more flexibility in the types of uses and development requirements, but restricts development of the property to that specified in the approving ordinance. Vice-Chairman Barfield opened the Public Hearing and called for those wishing to speak to come forward at this time. Mr. Glen Good, 4424 Misty Meadow, Fort Worth, came forward to speak. He stated he is the owner and operator of this project. He stated they have a similar facility in Arlington. Mr. Good stated the facility is a 24-hour care facility licensed by the state. He stated an assisted living center is a step below a nursing care facility and one step above a retirement center. He stated the residents are ambulatory. Mr. Good stated some of the residents need assistance with cooking, dressing, medication, and hygiene. He stated they offer transportation services and have activities on site. He stated the residents pay their own way. He stated the state inspects the facility twice each year. Mr. Good stated the project will cost about $3.5 million. He stated the facility will be affordable to those on social security or other pension funds. He stated they may accept some Medicaid patients. PZ Minutes - Page 3 March 9, 1995 Mr. Baxter asked if the residents are free to come and go from the facility. Mr. Good stated yes. He stated most of them stay in the facility but are encouraged to take part in social activities outside the facility. Vice-Chairman Barfield asked if any of the residents have cars. Mr. Good stated most do not. There being no one else wishing to speak, Vice-Chairman Barfield closed the Public Hearing. Mr. Bowen asked if Mr. Good was willing to rezone the entire tract to the Planned Development. Mr. Good stated yes. Mr. Baxter stated the proposed use is less intense than an apartment complex. Mr. Baxter made the motion to approve PZ 95-05. The motion was seconded by Ms. Spicer. The motion carried 4-0. STAFF REPORT None. CITIZEN COMMENTS None. , 0JOURNMENT There being no further business, the meeting was adjourned. David Barfield, Vice-Chairman Planning and Zoning Commission Victor Baxter, Secretary Planning and Zoning Commission Zoning Case Review Fact Sheet Case No. PZ 95-05 Hearing Dates: PZ 3/9/95 -' CC 3/27/95 REQUEST: R-7-MF to a Planned Development for an Assisted Living Center APPLICANT: Glen J. Good, Fort Worth TX PROPERTY OWNER: Alan Hamm & J.B. Sandlin, NRH TX SIZE AND LOCATION: Approximately 4.7 acres located at the northwest corner of Ross Road and North Richland Boulevard. SITE CHARACTERISTICS: Vacant property. PROPOSED USE: Assisted Living Center ALLOWED USE: same ADJACENT ZONING/LAND USES North R-7-MF: existing apartment complex (Cypress Gardens) South R-2: existing single family residences (Holiday North subdivision) East C-1: existing bank building (Liberty Bank) West LR: existing day care center DRAINAGE According to Flood Insurance Rate Maps, this property does not lie within a 1 DO-year or 500- year flood plain. THOROUGHFARE PLAN Primary access to this property is from North Richland Boulevard, classified as a C2U Minor Collector. Access is also available from Ross Road, an R2U Residential roadway. LAND USE MASTER PLAN The Comprehensive Land Use Master Plan calls for multi-family and open space development in this area. This request is consistent with the Plan. ZONING HISTORY This property was originally zoned 1 F-9 Single Family in 1967. Within the next five years, the zoning was changed to Local Retail and back to 1 F-9 as the surrounding area developed. In 1976, a zoning change on the property to MF Multi-Family was approved. This MF zoning district designation was changed to R-7-MF in 1984 when the Zoning Ordinance and map were revised. ~C~ .~ ?O ~4C~ ~~·OO '~"''1''I''..o;r.<'';'I.'" _......r:..CD>. .14~. ... ... <' . _~..... ~.,...... Q~"'<)o Ollt of Ho!1/1 .."11nd roll. 7:101 ..,.. ~~p ~o NOI1~ rtç¡leI1~ HI"', TX 111· .., . ~I$ APPLtOAl"ION FOA A PLANNED DEvelOPMENT /1'1- Ir..,....~.. RT 1. APPLlCANr tNFOAMATION I<h'~ ~11p~II'Q."t· ~ è1" ~1?A '- 1',1- RTN~F<. ~'~.Þ rUc.r; INC,· GI t.. f.H .;: 6 &'¿?/) S1fHl*",," øf ~t /.gfftt· 442~ M/$7,'" A1E:AÞOVV I Cly I $j,JI.lllp Cc<H 01.ppJl~.,." I .g.nr. Fo¡q N~/{m 7brl'f~ 7{¡;/~~ PART 2. PROPERTY OWNER INFORMATION . m::7t!I9~ IIAIH4I"'¡' Q) /lilt, 3". ß. $¡:Þ/u'IAJ strNf .dr#Ht «tfØÞ"rtI 0!tMr. SOl;'$" 04 ) IS Ið L v~. 5"131 Åh~r¡,l CJt¡ I S",. I lip Cod. 01 PfOP'rly OWl".': M.4'TIt IlJIl.A,/f; iI'LLí No"'~ AlIM;h t.l1,r Of .~If !rom P'O~ r./lpll4rrtIMomW Of ~p8Wrt I.~I: '3¥~ é~~ PARr 3. DESCRIPTION OF REQUeST ~ CiJIf""lòftl/)Q c~.j'~/(:tI: p~ IJH Of 11'1. ~ R - 7 - fJr As $1 S rê:Þ '-IV/Ne;· C;~";/ýiE:" 'Oe /h, MtVI't « !II. PfOþdu4 "'1N1y .1Id .,-,y H(t~vliI dWacttfill~ ,.¡.t.4 to 1M 14. of et. fttopft1,. gQ Cè;17 ~S~(~72!:Þ L.J VLN~C/:;'7V~ T?Þ<..:1 A ßLòG\~ 2S µ()LlP~'J N~ . ~ . ski p¡.fI \It/licf/ ç:çr,~rm. WIT" /lit f.¡"m'l1f' .hCWfl "^ /11. o.ck or /hil .þp/icttiot'l: S~, plM ðtl.cMó? ;I' c. ð ,.., E:; , CXJ YH c:::J ~,",' PART 4. FOR OFFiCe USE ONL V "" of PlaMlng VI<J lCIIIlfJg CØhlnlluið.1 Publle kUling: TU.t PaJ~' DYM tlw p,i:n Dy.. AI....In."t. PøJd1 Dy. A.,. 01 City Council f'r,¡f:1D4 I-IH"/)Q: P~d Dr::!"" ~f(J: y., .. _~di«ll 0/ ÁPPle¥V: o Nó DI AUucn "~,~t "nlll::''''' -...--...0...- .._~.. ~ IImftll o Nð CJ Nð c:J N6 0..., NUfrtNl: pz. '15 ~o5 'HI $300.00 ""'If .¡¡p6tMI/Qn wlllllOt /If tehf4ulttl b' þublJo ~ I¡f¡tltM Ippbllðll".. ~ ¡~~I;ì~/1 .:: \ t-!"~ ~~ q- --- - ,\ ~ ~" j - " ~'·I ~ ~ ~ .::- ~ - l; - ~ ~ I~ c. ~ ~ Q n ~ .. __ ::-t '" ø 'C : - ~- õ " ¡: - ..... : " - "\ SUSAN LEE LN." ~ ~ \ . I ~ "I - \! = _ "- . õ õ I, ~- : '~ is;j . ~" ~ .. .~?"1~~~~1_' _ ¡; \ "oJ ~ ; CI ..., ... ~ ~ ~ _ ~"i~.. ~ õ : \ " .1~~0~ ~ ~ ~ ..,.. _.~ ---.J ~ - ,-I: .J:., V')o " o ~ ~ 10 ~" ; ~ 'ó ~ 'J -\ ¡,., "... ~ : \ ~. 8.;: ;¡ ~ :: ~ .. ë \ \ I ::: v: ~ ~ I cro :: / ::: \! - -\ .¡ r-- L "' \ - ~ I" ! 'i" ": õ \~ .. I ' " \~ ~ A'T "0 ""'I! : : : V-- ~ -; ;~O!'õO¡:\, \' /, n, \, i: ~ ¡-~-HTn : 1: 0 :T:~· i ì \ - ~ : \ "~~ W::o\ì::)~ ~ ~ ~ I ~.> ,~. 'AN~ ¡ \\ ~ - \ :~ !: I õ;~ I.. ,I..I~ I~ I ~" J.~ ~~ '\ ¡ \, \" r:. I I I I ~ \ ;It! ; I ¡ ~ ¡ , \< . " I tn.:J: ".~!' I ~ '\ ~ ~i ~ \\ ¡:¡ ·1-1· I· I õ I õ I ' ~ "\' ff(- h6~¥1~~~ ~0:2 . C1~ ~'~EQ .~~~~ ~ I - 'Jo.N ~\ " - -A. .. ~:~ """"""i ¡ - __ ~ ?-,1' ~ Aj-j~ ~ ~_~Q ,~~~ ~ :.~.iÕ~J"~I"I~~;~" ; ~, ,~:~ \\-J~~II-~'~ ¡ - £..fCAlìD C7;T. ~ ~ - ~ 0... ~\:;." j ~ C1 r.~ ' - -- ID A- .. ¡ ~ ¡: : ¡;;; 'J lí~ -,"V' I'! <J' ~ I I ,';¡.. ~ .:;. -0 \" - ~ ::: ~ ;¡ ; ;; :: ~ ;'i 0 C1 (') L" 00: _1_ I <J' I, I , . r--" -/:!¡;/-;;?~~ N .. ~ ../ ~ ·T~ ,,- :t "r' I r--:--i -"ð I :; \,00 ...':::1 '" ~"- ... ~ ~ -1-1-1-1- -" ~ :~, :" ~ '." ~. ~ ~u ~ ~~ ì ~~ ;" :~' ~.. =. ~ ::: : .. ~~.. . ~ \ , '" c..... \II:: ;... _ I ->' ~ r--:- ~ ,00 '--::' ~ _ _ S~ ~:; UoHltALO CT. -; ~ _~~ ;;'7~¡ .... ,./ \ ~ 1"""1 \ ¡; ; - :: ... õ ~ ; ~ . 1-0 ~ - ~ '1""..... Or _ 0 ./ ~ .. ~ \ " ~ .. ¡; I : \ ¡: , ;; I ~~;; ¡; I ~ ~ " = :;: ~ .J--- " ~ " \ 0" ." ... \.. ';;:) " - ~ " . - ~ ::; :; VII. 000 ~ " - .. := ~ Yo"",,, ... \ 0.... " ~ z" .... 0° ~ 0 1".0 I ""r"'... \.- : ....:a. .. > I ~ ~ ~r-:- ~ 1:/: ~I-'- ~ , '10 100NVI ~. r-- -1-1- - -1- -~ Q,' - " ~ . ~ 'D -=-- ~ -I: . I... ..1- e~ - !I~: " I u" ;It! " I .. ~ , ~ "T1 .....,. - ;æQ ~ '" 1¡ r- ;It! ~ - - :: ~ L.--:::::; - - . I :ï :l =l -::I , I ;:-¡ ~ ---.. . : ;;; ".0 HAlO""':'! I \ . .. :: - " : .. ~ ¡; " ; ~ ~ .. ;; ~ ... - ~ .. \ .. ~ " '\ 00 ~ , 0 :: .. ~ ::: ~ ~ ~ - ~. ~ :: :: ~ .. .. :: .. ~ Q ~ " ~ ~ ë : ~ : : - ¡: ;; ; ::: ~ 0; - C'I ' .. ~ ; .. <;a :; .. ~ . ~ ;¡ " .. :: ~ " ... ~ t ~ " --.......J.. " / _ . '/:: \ - í:: ~ .. l:f .. :: ~¡----. ~ - ~ I---- " I 1- " ~... \ f--:-I... ~ ~;;¡ .... ~ CI' ">J ~ ----J õ; ;; \ c _v~ '" :::: is ] ~ .--:~/ ~ ~ :I:~ ~ :: ~ v 'i:::;;; 0' ~ Õ ~ ,"". ~ r, n~ ~ ... Q "o~ _ I, : ~ ~ ,. '\ '\'\\ ... I:r:~ .. . .. .~ - L:;' ~ ~ -' ~: \ ~~ -;- . , % ~.. \ Õ ~ O~~ ~~ Q o,.~ <Þ: cc.!--;:~ I.;» õ r- - ~ -:--rc - \ ¡; ~ ¡; :: <ë~~ .- ;; ; . ~: ~ - J ~ . ~ .. ':: ;; õ .. ~ ~ : ; :; \ : ~ \ : - ~ \ ¡;; : " ~ ';: t-;:. "'<) : ;. <ß"r; " ~ ; ~:.. ~ ::.. ,.... ~ \ .. ; ... \ "\."", N'ISnS ~\; .~'\~" - ~ - ¡; " - r--- ~ .._ .,1"" ~ "'--- n ~I ... ~ v '. ~ë; ~~~: Þ=>!'.::> - .. .. , I .. f--- -, It:; .. ~ ~ : lë ~ <') ::: " " \. ) "'- .. '"' '" ~ '" "" .. J "'""'" - , ~ ÐI CD lD I\) W I\) A 7 \\ y \\ ~~. ~ -"2..~ Ï\ l> Q) -<r r ~~ ;E. 38 " S c 5900 01-1 , :rJ 01 ' :t>~ n c.. "JJ \\t\ I.J)O :...l ~G) "'J> -\ f\.) \\\ Holiday North Addition BI7 Lot 1 Lot 2 Lot 3 Lot 4 Lot 5 BI25 Lot 1 BI 26 Lot A BI27 Lot 1 Lot 2 Lot 3 Lot 4 Lot 23 Lot 24 BI 28 Lot 1 Lot 2 Lot 14 Lot 1 5 BI 29 Lot 11 Lot 12 Tract A College Circle Shopping Center BI 1 Lot 1 College Hills Addition BI8A List of Property Owners Notified Case No. PZ 95-05 Glen Good James Herman Michael McRoberts John Lettner Virginia White Nedwin Ward James Richard Hamilton Hamm & Sandlin/Liberty Bank Vernon Metz Roland Perez James Edmondson Stephen Soltis Shirley Kennemer Ross Cessna Jack Crawford Larry Conway Curtis Pettie Richard Herrman Jesse Harnandez Charles Peacox Hamm & Sandlin Hamm & Sandlin College Circle Property #7784 ......-' 7700 North Richland Boulevard 76180-6412 6103 Rampart Street #2070 Houston 77081 9114 Thompson Lane Louisville KY 40258-1049 7712 North Richland Boulevard 76180-6412 5913 Crestwood Circle West 76180-6412 274 Larry Lane, Duncanville 75137-4020 5137 Davis Boulevard 76180-6873 7800 North Richland Boulevard 76180-6414 7804 North Richland Boulevard 76180-6414 5917 Steeplewood Drive 76180-6451 5913 Steeplewood Drive 76180-6451 7805 Crestwood Court North 76180-6428 7801 Crestwood Court North 76180-6428 5912 Steeplewood Drive 76180-6450 5908 Steeplewood Drive 76180-6450 5911 Crestwood Circle East 76180-6431 5915 Crestwood Circle East 76180-6431 5910 Crestwood Circle East 76180-6430 5914 Crestwood Circle East 76180-6430 5137 Davis Boulevard 76180-6873 5133 Davis Boulevard 76180-6873 3807 Wilshire Blvd #230 Los Angeles CA 90010 .... __________..______1... .__ øl...u.ð,nl rw.·ut--4' ..... .,.. .ftP4:1'f":Q1'k1a1oM~ ..""".... Yri S!:>3UQIIV ':Jt,I 's1ßA v , NOSJOvr ~ ¡ , 6 t ! 3 ------_.._-----_._---------------,~ avo!:! sso!:! -a¡ ~''''''''¡¡QIS ,to ~ :INn'dO<Sd ~ ... w W LL W II: « ::> o I/) 8 o 0; ¡:,¡ 111 / _ì Il' I) I>' o II: W !Z w o C ;;:; > ::J o w ... I/) ¡¡¡ I/) « II: o LL « w II: « o w I/) o a. o II: a. \U () \J L L « II' 'L t~ ,- ri 0{ / < Z ~I 1 ~rn l~ i [~ :1 ;" 1-" th ,.' ~f) ILl ,0 Xi- iii - " -, 111 I) ¡: ,,- :'I a¡ / NI~ ¡.n,o,L'; .Þ't' ¿~'''')Q.LV\II4.t, /~~..,...... .-----..-.,// I / 1 / 1 / ~ 1 I , I / :. I I ~ I / =1 / Ii / I I 1 I 1 I I I I I I I I I I I I I I I 1 I I I I I I I ' I I I I I I I I I I I I I I I I I I I I 1 I 1 I -~~~=-= .::: ::. .::: ::: :1 ::: - , I I I I I I -~-- CJ) LU f- a z ':>NI '3:>Vld 0009 !:!o~ H3.LN3~ ÐNI^1l 03J.SISSV o " ¡¡¡ f) 111 nl ... I>' II' Il '0 -0 o{f) :VIII 0{1} > LO -I>' :J,o. mill 11m ILI.I 1>', o{o{ :' ~ 000 II. 0{ 0111 g% "'00 11\ 'I' 0'- , I_-.{ /. III 51>' > 0{ -(III ,. f)' III 1.0 () 1'-" J)~:~ ,n ~ ~n o{ol>' ,n IL 111 ~I(.)J ttff'/ ~ -{~r ~j f.)~)d) gl:g r 0{ i O{" ,t :Sl~~~ 2 « ...J ~ ü5 · z ...-. ~º ..... ~ ~ « ~ · > ~ W ...J W , ~I- ~~ L~ , i z ~) < 0 ~ ~ ~ « " - > " W *' ...J ... W ... IÜ -, (/) 0( « II W ,0 l 2 \ « ...J ~ \ ü5 z 0 I ~ « I > · \ , W ...J W ;¡:' l- e¡; 0 Z Z 0 ~ ~ « > w " ...J '" w Iii ;¡: uï I- ::J _J 0( 0 II (/) ,0 ~ 0( V -, -I III ~ I>' u~ 111 a: 111 f) ) ,0 w <: 01) f- Q Z W N () 00- '" C) \J « 0 Z ,n :> ;¡ :J I~ / ;:¡ I>' 0{ O. '" " III f) '" m o <\ í) ~ '; () i~ ~~ 0. ~. >-~ m II 0{ ':'1 ~ô ~,C T ... I>' ,n r'. ô~ ~ ~~ )- llU ~ 8~ ~ ffi6 :1. 1-III:i~ t¡ ~n\!;,u!:J ~~~~~ :::\'(\!)()\O Õ:r.ZftI\I) \0:'; z~ () P9~~: jl~I~~ ; ~,- Of)~ ~~Mi~r~ ~?- ~(~& ~~ô'~~ (.) {) 1)/'0 ülr~ ~~ ~:~) ~~fi ~ tt \')111;' 11111. 6~ (1 ~ ~~<,f):¡; ~ ~ U1 ~ ~ :. ~ U~~~~1'1 ~~~91>'~ o \fI1- «I!..- or- 2« i 't1 V') \r ~ '~Q Q~J.S~? "a¡~-,....ç..l z « -1 a. W I- - CJ) () ~ II <)~ Ii G z 0'- 0{ ,- 7- ï ., "l f- :( f) '" f) ,~ > z ~ oj ::; i 0 Il >: '" 0{ m 00 ., f) J Z '{ UJ of I')} a; n. > '" r ,0 ?1\1 0.1 }. .1\ " 10 ~I D' .', '" ) ,n .1\ ., "'I>' of .., " 0111 ~' '" ;;- 1- _I I>' I>' 7;'; " I. ~[ ~ D' ~I'" >- () :;;~ ,1\ to "' IL II' > '" >I'L > / "' .1 ffil,~ 0< ~ ° "'1,,0{ J. ~I~ '" ~7 ffill>'~ -' ,of I ,~ ro '" >-1>:· 11\1 ~ 31m J' ¡¡jl~ æ='¡ ....;} -' ~¡6 <i 2 II.!¡;' ~Ir-t ," CITY OF NORTH RICHLAND HILLS . epartment: Finance .\..-.. ~ Council Meeting Date: 4/10/95 Agenda Number: GN 95-49 Subject: Revised Policies for Municipal Cable Television The CitiCable Board has been reviewing the Municipal Cable Television Policies for several months and on March 20, 1995 they approved a new set of policies for the North Richland Hills Cable Television System. Enclosed are copies of the revised policies. The underlined, italicized portions in the attachment are the additions or revisions to the previous policies. Also attached is a comparison of the current and revised policies by sedion which we hope will assist Council in easily reviewing the recommended changes. Most of the revisions by the Cable Board relate to simply "housekeeping" and updating language. Some of them relate to clarifying procedures as far as programming and other operations of the cable system. In preparing the policies, the Board also considered and reviewed similar policies of other cities. Fees and other charges for services perfonned by CitiCable are not included in the Municipal Policies, but they are currently being reviewed. These will be brought to Council after the Cable Board and City staff have thoroughly evaluated costs and formulated recommendations for rates. RECOMMENDATION: ""CitiCable Board and City staff recommend approval of the Municipal Cable Television Poljcies dated March, 1995. Finance Review Source of Funds: Bonds (GO/Rev.) -- Operating Budget ~-' '~ artment H ad gnature ' . CITY COUNCIL ACTION ITEM Acct. Number Sufficient Funds Available . Finance Director - Paae 1 of _._,-~~--_.~,~-_.,~-"...__...._-._._~.~-'------_.__.._~._.... MUNICIPAL CABLE TELEVISION POLICIES City of North Richland Hills, Texas March 1995 TABLE OF CONTENTS 1.0 INTRODUCTION 2.0 ORGANIZATION 3,0 PURPOSE AND SCOPE OF CITICABLE NRH PROGRAMMING 4.0 PROGRAMMING GOALS FOR CITICABLE NRH 5.0 DEFINITIONS 5.1 Cablecast 5.2 Citicable NRH 5.3 Citicable NRH Designated Channel 5.4 Community Agency 5.5 Community Producer 5.6 Community Programming 5.7 General Audience 6.0 GENERAL POLICIES 6.1 Cooperation with Other Telecommunications Agencies/Borrowing of Media 6.2 Programming/Services Ascertainment 6.3 Access to Facilities 6.4 Free-Lance Volunteer Personnel 6.5 Cablecast Hours 7.0 PROGRAMMING POLICIES 7.1 Program Development and Scheduling 7.2 Program Content TABLE OF CONTENTS (Con't.) 7.3 Approval of Programming 7.4 Program Rights/Copyright Accrual 7.5 Citicable NRH Programming Services 7.6 Program Selection Criteria 7.7 Editing Policies 7.8 Retention of Videotapes 7.9 Program Logs 7.10 Political Programming 7.11 Program Sponsorship 7.12 Complaint Procedure/Process of Appeal 8.0 PRODUCTION POLICIES 8.1 Use of EquipmenUFacilities 8.2 Scheduling 8.3 Fees for Services 9.0 VOLUNTEER POLICIES 9.1 Training for Citicable Volunteer 9.2 Volunteer Expenses 9.3 Volunteer Registration 10.0 GRANTS AND SPECIAL PROJECTS POLICIES 10.1 Grant-Funded and Sponsor-Supported Programming 10.2 Acceptance of Major Monetary Gifts 10.3 Special Projects ii '~--">--'~'--~~-'->"--'-~--"-'-~'---"--~---~'--"~ POLICIES FOR MUNICIPAL CABLE TELEVISION CITY OF NORTH RICHLAND HILLS, TEXAS 1.0 INTRODUCTION As a condition for use of public property and rights-of-way, Sammons Cable Communications provides the City of North Richland Hills with control and use of a portion of the transmission capacity of the local cable network. The City, in turn, has chosen to use its dedicated channel to provide programming designed to meet the needs of North Richland Hills. The City of North Richland Hills' municipal cable television channel (Designated channel) is administered by an Assistant City Manager in the City Manager's Office, as authorized by the North Richland Hills City Council. Under the guidance of the North Richland Hills City Council and a Cable Television Board, the City Manager's Office and Citicable staff have the following functions: (1) to monitor the operation of the entire cable television system, (2) to review and process citizen needs and address franchise concerns as necessary to insure compliance with the provisions of the City's cable television franchise agreement as ordinances, and (3) to create local programming for the municipal cable channel, (4) to provide videotaping and video support as needed by City departments, (5) to provide videotaping and video support upon request by community organizations and (6) to supplement the Citicable budget through non- competitive revenue-generating video services. 2.0 ORGANIZATION The City of North Richland Hills' Municipal Cable Channel is known as "North Richland Hills Citicable" (dba Citicable NRH). Citicable NRH is a division of the City Manager's Office and is administered by an Assistant City Manager. Planning and implementation of Citicable programming is provided by the Citicable Coordinator and Staff, with direction from the North Richland Hills Cable Television Board. The Citicable division of the City Manager's Office is funded through the City's general fund budget. A five percent (5%) franchise fee is collected from the gross revenues of the cable operator and deposited in the City's general fund to be distributed through North Richland Hill's annual budgeting process. The seven-member Cable Television Board appointed by the City Council serves as the lay advisory board to the Council on matters relating to cable television in the City of North Richland Hills. The Cable Television Board is charged with coordinating the development and implementation of 1 _"~__~~.,>~______.,_~_~h'_'.'·_____"__··_·_~u...~ policies and procedures for Citicable NRH, conducting an annual performance evaluation of cable service, and keeping the City Council advised of issues relative to the North Richland Hills cable franchise. 3.0 PURPOSES AND SCOPE OF CITICABLE NRH PROGRAMMING Citicable NRH produces community television programming focusing on the educational, cultural, civic, and recreational needs and interests of the Greater North Richland Hills community. Programs cannot promote a specific product or business, contain partisan political material, solicit funds for commercial purposes, or support a specific religious viewpoint. Questions regarding policy should be referred to the Cable Television Board. Public access programming is provided through the cable operator at its public access studio. Some examples of the types of programs which meet the programming criteria for Citicable NRH are: A. Interviews, documentaries, performances, and workshops sponsored by City departments or in cooperation with civic, cultural, and educational organizations. B. Educational, how-to, public service, and recreational programs. C. Non-partisan City political issues, news, and interviews. D. Local election coverage. E. Personnel openings in the City of North Richland Hills. F. Coverage of community functions. G. Programs of general interest to the public produced or sponsored by Citicable NRH. Each original program must conclude with a statement indicating it was produced by Citicable NRH. The City of North Richland Hills is the sole copyright owner of all tapes and programs produced by Citicable NRH. 2 4.0 PROGRAMMING GOALS FOR CITICABLE NRH · To assure the best allocation of the limited and valuable resources of Citicable NRH for the benefit of the City of North Richland Hills and its cable television subscribers. · To create a community television channel for the purposes of disseminating community, educational and governmental information and events to the citizens of North Richland Hills. · To coordinate production of programming in cooperation with the City's community, governmental and educational agencies. · To produce quality programming that will inform, educate, entertain, and enlighten the citizens of North Richland Hills and keep them abreast of events and issues in the City. · To foster community spirit and identity by utilizing local television programming as a vehicle for sharing the skills, talents, and knowledge of North Richland Hills' citizens. · To operate Citicable NRH designated channel in a professional manner, adhering to the highest standards of journalistic, artistic and technical quality. · To keep abreast of telecommunications technologies in order to consistently improve services to the people of North Richland Hills. 5.0 DEFINITIONS 5.1 Cablecast: The transmission of video productions via cable to home television viewers who subscribe to cable television. 5.2 Citicable NRH: The City of North Richland Hills office which has production responsibility for municipal and community cable television programming and oversight, under the direction of the City Manager's Office. 5.3 Citicable NRH Designated Channel: The channel designated for community programming use and operated by the City of North Richland Hills; a division of the City Manager's Office. 5.4 Community Agency: Any Greater North Richland Hills educational, governmental, or civic organization or institution which coordinates or produces programming for possible cablecast on Citicable NRH designated channel. 3 5.5 Community Producer: Any person who produces community programs for possible cablecast on Citicable NRH designated channel with the assistance of Citicable NRH staff. 5.6 Community Programming: Any programming produced under the auspices of the Citicable NRH focusing on subject matter of interest and relevance to the North Richland Hills community. 5.7 General Audience: The collective viewership of North Richland Hills' residents, composed of the general public who subscribe to cable television. 6.0 GENERAL POLICIES 6.1 Cooperation with Other Agencies/Borrowing of Media: Citicable NRH will cooperate with other media, municipalities and agencies to promote the development of local information/programming exchange. Reciprocal service agreements (such as exchange of videotapes) with local educational, broadcast, cable, and other production entities will be encouraged and developed in order to maximize the use of local resources. Copies of video tapes of unrestricted programs may be borrowed by community organizations and institutions, in accordance with the Policies. Borrowing must be scheduled five days in advance. Citicable NRH will also cooperate with other governmental entities in the Dallas/Fort Worth Metroplex to promote and establish interconnection of area cable systems as this becomes economically feasible. 6.2 Programming/Services Assessment: The City of North Richland Hills periodically conduct viewer surveys for use in planning programming and services to reflect the changing needs of the community. 6.3 Free-Lance Volunteer Personnel: Citicable NRH from time to time will use the services of free-lance technicians and talent in ,the production of community programming. Such services will be scheduled on a volunteer basis as needed by Citicable NRH administrative staff. 6.4 Cablecast Hours: Hours of operation and the transmission times for community television programming are as determined by the City of North Richland Hills. 4 7.0 PROGRAMMING POLICIES 7.1 Program Development and Scheduling: Citicable NRH is authorized to coordinate program development and scheduling on the designated channel. Community programming is a cooperative endeavor among local educational, governmental, civic and community organizations and individuals. Staff will assist in the development of program proposals which fall within the stated purposes of Citicable NRH and within the limitations of facilities and personnel. The Cable Television Board recognizes that although numerous worthwhile activities and events occur in the community, the primary goal is to produce programs which can be cablecast on Citicable NRH and assist City Departments. While every effort will be made to comply with special programming requests, the needs of the City and the Citicable NRH will take precedence. 7.2 Program Content: The primary focus of the Citicable NRH is the creation of quality programming to benefit the citizens of North Richland Hills. Programming produced for Citicable NRH will promote community identity, pride and creativity. Consistent with the stated Purposes and Scope of Citicable NRH Programming, local programming will reflect the needs and interest of the North Richland Hills community. Representative Citicable NRH programming includes: A. Live City Council and Planning and Zoning Commission Meetings. B. Special programming for children and adults. C. Local performing arts. D. Local news and.community interest programs. E. Local sporting events. Citicable NRH operates under the authority of Federal and State law, including the Cable Communications Policy Act of 1984, the Cable Television Consumer Protection and Competition Act of 1992, any changes to those two Acts and the Federal Communications Commission's rules pertaining to cable television programming. All such guidelines will be adhered to in the 5 approval of programs for cablecasting. Accordingly, the following representative programming restrictions apply: A. Programs containing obscene, offensive or defamatory material will not be cablecast on Citicable NRH. Citicable NRH recognizes that programs with artistic, civic, or social value may contain content or language considered objectionable to some viewers. Community standards of good taste will be adhered to at all times. B. Programs of copyrighted materials will not be cablecast without proper copyright authorizations. Agencies and departments submitting programs for cablecast are responsible for obtaining all necessary copyright clearance and shall hold Citicable NRH harmless in any case of copyright infringement. C. Programs which have the primary purpose to promote commercial/profit-making service products, trade or business, will not be cablecast on Citicable NRH. D. Discussion of partisan issues not adhering to the FCC's equal time guidelines will not be cablecast on Citicable NRH. 7.3 Approval of Programming: The Citicable NRH Coordinator will approve the scripts and prospective guests of all programs according to the guidelines set forth in this document (See Section 7.2 Programming Content). Ideas for new programs must have prior approval of the Cable Television Board. Citicable NRH reserves the right to exercise editorial discretion with regard to programming, according to the Citicable NRH operating policies. (Exception: Public meetings will not be edited or subject to editorial comment.) 7.4 Programs Rights/Copyright Accrual: The master videotape of all programming produced using Citicable NRH equipment and/or personnel shall be the property of Citicable NRH for use as the Citicable NRH administrative staff shall deem appropriate (e.g., submission in award competitions). Copyright of the tapes shall belong to the City of North Richland Hills. Copyright for creative properties (i.e. original scripts, music, artwork) shall accrue to the owner/creator of said property... 6 Agreements between the Citicable NRH and creator/owners will contain the following assurances: A. Owner/creator shall grant Citicable NRH copyright clearance for the use of the property in a non-commercial manner. B. Programs will only be reproduced at cost, upon request, for parties involved in the program (cast, producer, sponsor, etc.). C. Programs will not be sold or distributed in whole or in part without the written consent of the City of North Richland Hills and the copyright holder. D. Copies of programs produced by Citicable NRH may be obtained with the provision of a blank tape and payment of per tape dubbing charge as determined by the City. Blank tapes must be %" (VHS) format. Funds collected from copying videotapes will be deposited to the Citicable NRH revenue account. 7.5 Citicable NRH Programming Services: Citicable NRH may select and cablecast programming generated by community agencies, independent community producers and other production entities, as well as programming produced internally by Citicable NRH. Only that programming which is consistent with the overall Citicable NRH policy may be cablecast or produced in cooperation with Citicable NRH. Per the Franchise Ordinance, the cable operator is responsible for public access programming. Citicable NRH will not cablecast programming which falls under the cable operator's jurisdiction. The programming services provided by Citicable NRH are as follows: A. Public meetings: All public meetings of City policy-making boards and commissions may be cablecast on Citicable NRH as authorized by the City Council. The live cablecasting of such meetings will be coordinated in advance with the board or commission's representative. No videotapes of these meetings are produced. B. Programming from Community Agencies/ Individuals: Any community agency or individual may submit program proposals or requests for cablecast of programs which they feel appropriate for Citicable NRH. These may be locally produced, coordinated with Citicable NRH or may be obtained 7 from other sources. Only those tapes which are consistent with the operating policies of Citicable NRH may be cablecast. C. Community Bulletin Board: Information for character- generated announcements on the Community Bulletin Board should keep with the intent of Citicable NRH policies, and must be submitted in a "cablecast-ready" format with complete information as to date, place, time, etc. All events announced must be open to the public and non-commercial in nature. D. Public Service Announcements (PSAs): Citicable NRH will accept and cablecast prepared PSAs according to the program selection criteria. Production of PSAs using Citicable NRH facilities must be coordinated with Citicable NRH Coordinator at least one month in advance of the cablecast date. E. Technical Assistance: Citicable NRH staff may provide technical assistance which includes (but is not limited to) pre- production planning, script writing, videotaping, and post- production work. Generally, programming types include multi- camera studio productions, single-camera field productions and multi-camera mobile van productions. 7.6 Program Selection Criteria: Any externally-produced videotapes submitted for cablecasting will be previewed and approved by the Citicable NRH staff. The following criteria will apply to all programming considered for cablecasting: A. Technical Quality: Video and audio quality must be of acceptable levels as determined by the Citicable NRH Coordinator. B. Relevance of Subject Matter, Content or Appeal: Program subject matter must relevant to the needs and interests of the Greater North Richland Hills community. C. Absence of Advocacy: Partisan or controversial issues must adhere to equal time guidelines. Every effort must be made to present all points of view. D. Absence of Defamatory Material: Subject matter which slanders or libels individuals or organizations will not be presented for cablecast. 8 E. Absence of Obscene or Offensive Material: Programs that have potentially offensive material are subject to any or all of the following regulations: 1. A program disclaimer at the beginning of the program such as "This program contains material or subject matter which may not be suitable viewing for children". 2. Cablecast of the program when children are least likely to be viewing. 3. Citicable NRH reserves the right to edit out portions of the tape which are particularly offensive by accepted community standards or norms. 7.7 Editing Policies: The following policies will apply to editing of Citicable NRH programs: A. Public Meetings: Public meetings cablecast shall not be edited or subjected to editorial comment. Meeting coverage shall be from gavel to gavel. Editing of technical difficulties is permitted. B. Programming from Community Agencies/Producers: Any programming prepared by or provided by a community agency or individual producer may be modified or edited as appropriate and as dictated by scheduling and availability of Citicable NRH personnel. C. Community Bulletin Board: Announcements programmed on Community Bulletin Board may be edited to provide clarity and to provide compatibility with the necessary format. D. Public Service Announcement (PSAs): PSAs may be edited to provide clarity or to adhere to accepted time standards. E. Liability for Error: Should human error result in the cablecast of incorrect information over Citicable NRH, the City of North Richland Hills or its employees and agents shall not be liable for the inaccuracy of the information. 7.8 Retention of Videotapes: The following policy shall apply with respect to retention of videotapes: A. Citicable NRH Produced Programming: Citicable NRH programming may be retained for repeat cablecasting or 9 Citicable archives at the discretion of the Municipal Cable Coordinator. Other tapes will be erased and reused as needed. B. Programming from Other Sources: Programming accepted for cablecast from other sources may be retained for repeat cablecasting at the discretion of the Citicable Coordinator. Upon prior request, videotapes will be returned to the owner/producer after final cablecast. Tapes which are not returned will be re-used by Citicable NRH for the production of other programming. C. Public Service Announcements (PSAs): PSAs will be retained and cablecast on Citicable NRH as long as the subject matter is timely. Upon prior request, videotapes will be returned to owner/producer after final cablecast. Tapes not returned will be reused by Citicable NRH for production of other programming. 7.9 Program Logs: A log may be kept of all programming cablecast during any day upon request. Log information may include program title, air time, length of program, etc. 7.10 Political Programming: Legal candidates or their representatives are not permitted to make partisan political statements on Citicable NRH except as part of a forum, a meeting of candidates or programs meeting equal time guidelines. All Citicable NRH coverage of governmental affairs will be of the public affairs or documentary-style format. 7.11 Program Sponsorship: The Cable Television Board encourages sponsorship of Citicable NRH programs. Any program sponsored (in full or in part) by a commercial, civic, or private entity will carry a brief sponsorship statement such as "this program is made possible through a grant from ." Video footage may include a logo, name, address and telephone number and a brief description of the sponsor organization. This information will be cablecast at appropriate times during the sponsored programs. 7.12 Complaint Procedure/Process of Appeal: Complaints regarding cable operations in North Richland Hills may be submitted to the 10 appropriate Assistant City Manager or his/her staff delegate verbally or in writing. Complaints requiring further action must be filed in writing and signed by the complainant. A. The Assistant City Manager or his/her staff delegate will act upon the complaint within a maximum of ten (10) working days. B. Further appeal is then directed to the Cable Television Board. The complaint will be reviewed and acted upon at the next scheduled board meeting. C. Final appeal within municipal jurisdiction will be directed to the City Council and/or the City Attorney. A decision at this level of appeal will be determined as soon as possible, 8.0 PRODUCTION POLICIES 8.1 Use of Equipment/Facilities: Citicable NRH facilities and equipment may only be used by the Citicable NRH staff and volunteers to produce and edit approved programs for the City of North Richland Hills for revenue-generated purposes. Citicable NRH equipment, facilities and staff are available to help the City departments of North Richland Hills produce videotapes for training videos or to videotape specific situations or events for later usage. (Examples would be on-location coverage to be shown at a City Council Meeting or taping of a marathon to be incorporated into a North Richland Hills sports show.) The future usage of the videotaped program or segment will be an important consideration in deciding whether to videotape an event. Community organizations and commercial entities may contract for the use of Citicable NRH equipment, facilities, and staff upon availability (Note: Staff must be present for the use of all Citicable NRH equipment.) 8.2 Scheduling: All requests for Citicable NRH services are evaluated with the criteria of the Programming PoHcies Section 7.1. Community organizations and commercial entities must schedule use of Citicable facilities or time with Citicable staff at least two weeks prior to need. Likewise, City Departmental training films and coverage of events must be scheduled at least two weeks in advance with the Citicable Coordinator, using a "Citicable Production Request Form". 11 City Departmental programming produced for the Citicable NRH designated channel generally fall into, but are not limited to, one of the following categories: A. Live or tape-delayed cablecasts of public meetings, governmental conferences or forums which take place in either the Pre-Council Room, City Council Chambers, or Recreatio'n Center and usually requiring multi-camera production. B. Tape-delayed single-camera mobile van coverage of a local government or community-oriented event, meeting, or forum which takes place outside City facilities but has adequate van access, lighting, and electrical resources. C. Tape-delayed single-camera coverage of a local government, City departmental or community-oriented event which requires some post-production work. D. Interview format programs of governmental employees and/or governmental, civic, or community officials videotaped in a studio format. E. Scripted, narrated programs explaining an issue or activity requiring editing. 8.3 Fees for Services: Community organizations and commercial entities will be billed for any charges (based on the prevailing per- hour costs). Community and commercial producers will be billed for any labor, equipment, supplies or materials which are over and above what exists or is necessary for a particular job or project. 9.0 VOLUNTEER POLICIES 9.1 Training for Citicabte Volunteers: All Citicable NRH volunteers must meet the following criteria: A. Successfully complete Citicable NRH training as a prerequisite to hands-on equipment use. B. Use editing facilities only after proficiency in use of the equipment is demonstrated and upon approval of the Cable Coordinator. Citicable staff will supervise all editing sessions. C. Use equipment only for Citicable NRH productions. 12 D. Use of the mobile production van is restricted to authorized Citicable NRH staff. Only those staff on the City's vehicle insurance list may drive the mobile van, 9.2 Volunteer Expenses: Volunteers may deduct mileage and other personal expenses incurred while assisting in Citicable NRH productions from their personal income tax, according to IRS guidelines. 9.3 Volunteer Registration: Before a volunteer begins work for Citicable NRH, he or she must complete an application form with name, address, phone and other requested information. Applications are filed with the Citicable NRH Coordinator. 10.0 Grant and Special Proiects Policies 10.1 Grant-funded and Sponsor-supported Programming: Citicable N RH is authorized to research and develop funding support for special programming. All grant proposals must be forwarded through the Cable Television Board for City Council approval. The Cable Television Board will review and approve all sponsor- supported projects which require continuing sponsorship. 10.2 Acceptance of Major Monetary Gifts: Major monetary gifts to Citicable NRH may be accepted by the City Council upon recommendation of the Cable Television Board. Major gifts funds will be deposited to the Citicable NRH revenue account when there are no conditions attached. Other monetary payments to Citicable NRH will be accepted in exchange for technical assistance or production services. All other gifts must be reviewed by the City Manager before acceptance or rejection. 10.3 Special Projects: Community agencies or Citicable NRH program producers may coordinate the production of special projects which require limited financial support. Special projects must be approved by the Cable Television Board according to specific guidelines. Special projects must be consistent with Citicable NRH policies and will be subject to the limitations of Citicable NRH facilities and personnel. 13 CITY OF NORTH RICHLAND HILLS .. epartment: Finance ~ Council Meeting Date: 4/10/95 "- Subject: Consideration of Action on <;111 M::¡ttt=m::t Agenda Number: -Í3N 95-50 Pertaining to the Award and Sale of $6,000,000 in General Obligation Bonds - Ordinance #2046 Bids will be received on Monday, April 10, 1995 for the sale of $6,000,000 in General Obligation Bonds for projects described and approved by City Council at their October 10,1994 and November 14, 1994 City Council meetings. Rating conferences with Standard and Poor's and Moody's were held recently. We received our ratings from both Moody's Investors, and Standard & Poor's, and they have maintained our ratings of A and A+ respectively. Bids on the General Obligation Bonds will be evaluated by First Southwest Company and the Director of Finance and will be submitted to City Council at the regular meeting on April 1 O. Upon acceptance of the best bid it will be necessary for City Council to award the bids and to approve the ordinance as prepared by our bond counsel, Fulbright and Jaworski. The enclosed ordinance is for your consideration to be passed on Monday, April 10. This ordinance also authorizes all the other necessary actions such as paying agent/registrar agreements. In this Bond issue, we have planned to structure our debt repayment schedule toward an equal principal annual payment rather than an equal payment schedule. By doing this, the City can save considerable ,-.....1terest expense over the life of the bonds. We have structured a modified equal principal plan to allow us to stay within the projected tax rate and begin this approach. Based on projected interest rates, we estimate a 20 year savings in interest expense of $818,500. The actual savings can be slightly more or less depending on our bids. We believe this method of debt repayment will have significant advantages in the long term. Recommendation It is recommended that the City Council take the following action: 1. Accept the best bid for the $6,000,000 in General Obligation Bonds as evaluated and recommended by First Southwest Company. 2. Adopt Ordinance No. 2046 authorizing the issuance of General Obligation Bonds, Series 1995, and approving Bank One Texas, NA, Fort Worth as Paying/Agent Registrar. Finance Review _ Source of Funds: Bonds (GO/Rev.) .,- Operating Budget Other ~~:;e CITY COUNCIL ACTION ITEM - . Finance Director - - Paoe 1 of _____ ORDINANCE NO. 2046 AN ORDINANCE authorizing the issuance of "CITY OF___NORTH RICHLAND HILLS, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1995"; specifying the terms and features of said bonds; levying a continuing direct annual ad valorem tax for the payment of said bonds; and resolving other matters incident and related to the issuance, sale, payment and delivery of said bonds, including the approval and execution of a Paying Agent/Registrar Agreement and the approval and distribution of an Official Statement pertaining thereto; and providing an effective date. WHEREAS, the City Council further finds and determines that $6,000,000 in principal amount of general obligation bonds approved and authorized to be issued at elections held on September 10, 1985 and September 27, 1994 should be issued and sold at this time; a summary of the general obligation bonds authorized at said elections, the principal amount authorized, amounts heretofore issued and being issued pursuant to this ordinance and amounts remaining to be issued subsequent hereto being as follows: Total Amounts Amounts Date of Amount Heretofore Being Unissued Election Purpose Authorized Issued Issued Balance 9-10-85 Drainage $16,870,000 $12,870,000 $ 1, 100,000 $ 2,900,000 9-27-94 Streets 20,000,000 -0- 3,225,000 16,775,000 9-27-94 Drainage 1,865,000 -0- -0- 1,865,000 9-27-94 Public Safety 1,675,000 -0- 1,675,000 -0- AND WHEREAS, the City Council hereby reserves and retains the right to issue the balance of unissued bonds approved at said elections in one or more installments when, in the judgment of the Council, funds are needed to accomplish the purposes for which such bonds were voted; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: SECTION 1: Authorization - Desiqnation- Principal Amount- Purpose. GeneraY obligation bonds of the City shall be and are hereby authorized to be issued in the aggregate principal amount of $6,000,000, to be designated and bear the title "CITY OF NORTH RICHLAND HILLS, TEXAS, GENERAL OBLIGATION BONDS, SERIES 1995" (hereinafter referred to as the "Bonds"), for permanent public improvements and public purposes, to wit: $1,100,000 for flood control/storm sewer improvements, $3,225,000 for street 0240119 improvements, including traffic signalization, drainage incidental thereto and the acquisition of land and right-of-way therefor and $1,675,000 for public safety facilities and equipment (Fire and Police), in _accordance with authority.conferred at the aforesaid elections and in conformity with the Constitution and laws of the state of Texas. SECTION 2: Fullv Reqistered Obligations - Bond Date _ Authorized Denominations-Stated Maturities-Interest Rates. The Bonds shall be issued as fully registered obligations only, shall be dated April 1, 1995 (the "Bond Date"), shall be in denominations of $5,000 or any integral multiple (within a Stated Maturity) thereof, and shall become due and payable on February 15 in each of the years and in principal amounts (the "Stated Maturities") and bear interest at the rate (s) per annum in accordance with the following schedule: Year of Principal Interest Stated Maturity Amount Rate(s) 1997 $150,000 % - 1998 150,000 % - 1999 300,000 % - 2000 300,000 % - 2001 300,000 % - 2002 300,000 % - 2003 300,000 % - 2004 300,000 % - 2005 300,000 % - 2006 360,000 % - 2007 360,000 % - 2008 360,000 % - 2009 360,000 % - 2010 360,000 % - 2011 360,000 % - 2012 360,000 % - 2013 360,000 % - 2014 360,000 % - 2015 360,000 % The Bonds shall bear interest on the unpaid principal amounts from the Bond Date at the rate(s) per annum shown above in this Section (calculated on the basis of a 360-day year of twelve 30-day ,,,months) . . .---Interest - on the Bonds shall be payable on February 15 and August 15 in each year, commencing February 15, 1996. SECTION 3: Terms of Pavment-Pavinq Aqent/Reqistrar. The principal of, premium, if any, and the interest on the Bonds, due and payable by reason of maturity, redemption or otherwise, shall 0240119 -2- be payable only to the registered owners or holders of the Bonds (hereinafter called the "Holders") appearing on the registration and transfer books (the "Security Register") maintained by the Paying Agent/Registrar and the payment. thereof shall be in any coin or currency of the United states of America, which at the time of payment is legal tender for the payment of public and private debts, and shall be without exchange or collection charges to the Holders. The selection and appointment of Bank One, Texas, N.A., Fort Worth, Texas to serve as Paying Agent/Registrar for the Bonds is hereby approved and confirmed. Books and records relating to the registration, payment, exchange and transfer of the Bonds (the "Security Register") shall at all times be kept and maintained on behalf of the City by the Paying Agent/Registrar, all as provided herein, in accordance with the terms and provisions of a "Paying Agent/Registrar Agreement", substantially in the form attached hereto as Exhibit A and such reasonable rules and regulations as the Paying Agent/Registrar and the City may prescribe. The Mayor and City Secretary of the City are hereby authorized to execute and deliver such Agreement in connection with the delivery of the Bonds. The City covenants to maintain and provide a Paying Agent/Registrar at all times until the Bonds are paid and discharged, and any successor Paying Agent/Registrar shall be a bank, trust company, financial institution or other entity qualified and authorized to serve in such capacity and perform the duties and services of Paying Agent/Registrar. Upon any change in the Paying Agent/Registrar for the Bonds, the City agrees to promptly cause a written notice thereof to be sent to each Holder by united states Mail, first class postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. Principal of and premium, if any, on the Bonds shall be payable at the Stated Maturities or the redemption thereof, only upon presentation and surrender of the Bonds to the Paying Agent/Registrar at its principal office. Interest on the Bonds shall be paid to the Holders whose name appears in the Security Register at the close of business on the Record Date (the last business day of the month next preceding each interest payment date) and shall be paid by the Paying Agent/Registrar (i) by check sent United states Mail, first class postage prepaid, to the address of the Holder recorded in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested by,and at the risk and expense of, the Holder. If the date for the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the City where the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when banking 02<W1l9 -3- "'''~~'-~'~~'.>-"''>'''-'' '---'-~--------- institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. In the event of a nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be e~tabli~hed by the Paying Agent/ Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. SECTION 4: Redemption. (a) Optional Redemption. The Bonds having Stated Maturities on and after February 15, 2006, shall be subject to redemption prior to maturity, at the option of the City, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on February 15, 2005 or on any date thereafter at the redemption price of par plus accrued interest to the date of redemption. (b) Exercise of Redemption option. At least forty-five (45) days prior to a redemption date for the Bonds (unless a shorter notification period shall be satisfactory to the Paying Agent/Registrar), the City shall notify the Paying Agent/Registrar of the decision to redeem Bonds, the principal amount of each Stated Maturity to be redeemed, and the date of redemption therefor. The decision of the City to exercise the right to redeem Bonds shall be entered in the minutes of the governing body of the city. (c) Selection of Bonds for Redemption. If less than all Outstanding Bonds of the same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/Registrar shall treat such Bonds as representing the number of Bonds Outstanding which is obtained by dividing the principal amount of such Bonds by $5,000 and shall select the Bonds, or principal amount thereof, to be redeemed within such Stated Maturity by lot. (d) Notice of Redemption. Not less than thirty (30) days prior to a redemption date for the Bonds, a notice of redemption shall be sent by united States Mail, first class postage prepaid, in the name of the City and at the City's expense, to each Holder of a Bond to be redeemed in whole or in part at the address of the Holder appearing on the Security Register at the close of business 0240119 -4- on the business day next preceding the notice, and any notice of redemption conclusi vely presumed to have been duly whether received by the Holder. date of mailing such so mailed shall be given irrespective of All notices of redemption shall (i) specify the date of redemption for the Bonds, (ii) identify the Bonds to be redeemed and, in the case of a portion of the principal amount to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state that the Bonds, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption date specified, and the interest thereon, or on the portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the redemption date, and (v) specify that payment of the redemption price for the Bonds, or the principal amount thereof to be redeemed, shall be made at the principal office of the Paying Agent/Registrar only upon presentation and surrender thereof by the Holder. If a Bond is subject by its terms to prior redemption, and has been called for redemption, and notice of redemption thereof has been duly given as hereinabove provided, such Bond (or the principal amount thereof to be redeemed) shall become due and payable and interest thereon shall cease to accrue from and after the redemption date therefor; provided moneys sufficient for the payment of such Bond (or of the principal amount thereof to be redeemed) at the then applicable redemption price are held for the purpose of such payment by the Paying Agent/Registrar. SECTION 5: Reqistration - Transfer - Exchanqe of Bonds- Predecessor Bonds. The Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the name and address of each and every owner of the Bonds issued under and pursuant to the provisions of this Ordinance, or if appropriate, the nominee thereof. Any Bond may be transferred or exchanged for Bonds of other authorized denominations by the Holder, in person or by his duly authorized agent, upon surrender of such Bond to the Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer or request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. Upon surrender of any Bond for transfer at the principal office of the Paying Agent/Registrar, the Paying Agent/Registrar shall register and deliver, in the name of the designated transferee or transferees, one or more new Bonds of authorized denominations and having the same Stated Maturity and of a like aggregate principal amount as the Bond or Bonds surrendered for transfer. 0240119 -5- At the option of the Holder, Bonds may be exchanged for other Bonds of authorized denominations and having the same stated Maturity, bearing the same rate of interest and of like aggregate principal amount .. as the .Bonds surrendered. for, exchange, upon surrender of the Bonds to be exchanged at the principal office of the Paying Agent/Registrar. Whenever any Bonds are surrendered for exchange, the Paying Agent/Registrar shall register and deliver new Bonds to the Holder requesting the exchange. All Bonds issued in any transfer or exchange of Bonds shall be delivered to the Holders at the principal office of the Paying Agent/Registrar or sent by United states Mail, first class, postage prepaid to the Holders, and, upon the registration and delivery thereof, the same shall be the valid obligations of the City, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the Bonds surrendered in such transfer or exchange. All transfers or exchanges of Bonds pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange of any tax or other governmental charges required to be paid with respect to such transfer or exchange. Bonds cancelled by reason of an exchange or transfer pursuant to the provisions hereof are hereby defined to be "Predecessor Bonds," evidencing all or a portion, as the case may be, of the same obligation to pay evidenced by the new Bond or Bonds registered and delivered in the exchange or transfer therefor. Additionally, the term "Predecessor Bonds" shall include any mutilated, lost, destroyed, or stolen Bond for which a replacement Bond has been issued, registered, and delivered in lieu thereof pursuant to the provisions of Section 11 hereof and such new replacement Bond shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Bond. Neither the City nor the Paying Agent/Registrar shall be required to issue or transfer to an assignee of a Holder any Bond called for redemption, in whole or in part, within 45 days of the date fixed for the redemption of such Bond; provided, however, such limitation on transferability shall not be applicable to an exchange by the Holder of the unredeemed balance of a Bond called for redemption in part. SECTION 6: Book-Entrv Onl v Transfers and Transactions. Notwithstanding the provisions contained in Sections 3, 4 and 5 hereof relating to the payment, and transfer/exchange of the Bonds, the City hereby approves and authorizes the use of "Book-Entry Only" securities clearance, settlement and transfer 0240119 -6- system provided by The Depository Trust Company (DTC) , a limited purpose trust company organized under the laws of the state of New York, in accordance with the requirements and procedures identif ied in the Letter of Representation, by and between the City, the Paying Agent/Registrar and DTC (the "Depository Agreement") relating to the Bonds. Pursuant to the Depository Agreement and the rules of DTC, the Bonds shall be deposited with DTC who shall hold said Bonds for its participants (the "DTC Participants"). While the Bonds are held by DTC under the Depository Agreement, the Holder of the Bonds on the Security Register for all purposes, including payment and notices, shall be Cede & Co., as nominee of DTC, notwithstanding the ownership of each actual purchaser or owner of each Bond (the "Beneficial Owners") being recorded in the records of DTC and DTC Participants. In the event DTC determines to discontinue serving as securities depository for the Bonds or otherwise ceases to provide book-entry clearance and settlement of securities transactions in general or the city determines that DTC is incapable of properly discharging its duties as securities depository for the Bonds, the City covenants and agrees with the Holders of the Bonds to cause Bonds to be printed in definitive form and provide for the Bond certificates to be issued and delivered to DTC Participants and Beneficial Owners, as the case may be. Thereafter, the Bonds in definitive form shall be assigned, transferred and exchanged on the Security Register maintained by the Paying Agent/Registrar and payment of such Bonds shall be made in accordance with the provisions of Sections 3, 4 and 5 hereof. SECTION 7: Execution - Reqistration. The Bonds shall be executed on behalf of the City by the Mayor under its seal reproduced or impressed thereon and countersigned by the City Secretary. The signature of said officers on the Bonds may be manual or facsimile. Bonds bearing the manual or facsimile signatures of individuals who are or were the proper officers of the City on the Bond Date shall be deemed to be duly executed on behalf of the City, notwithstanding that such individuals or either of them shall cease to hold such offices at the time of delivery of the Bonds to the initial purchaser(s) and with respect to Bonds delivered in subsequent exchanges and transfers, all as authorized and provided in the Bond Procedures Act of 1981, as amended. No Bond shall be entitled to any right or benefit under this Ordinance, or be valid or obligatory for any purpose, unless there appears on such Bond either a certificate of registration substantially in the form provided in Section 9C, manually executed by the Comptroller of Public Accounts of the State of 02-40119 -7- Texas, or his duly authorized agent, or a certificate of registration substantially in the form provided in Section 9D, manually executed by an authorized officer, employee or representative - of the - Paying Agent/Registrar, and. either such certificate duly signed upon any Bond shall be conclusive evidence, and the only evidence, that such Bond has been duly certified, registered, and delivered. SECTION 8: Initial Bond(s). The Bonds herein authorized shall be initially issued either (i) as a single fully registered bond in the total principal amount of $6,000,000 with principal installments to become due and payable as provided in Section 2 hereof and numbered T-1, or (ii) as nineteen (19) fully registered bonds, being one bond for each year of maturity in the applicable principal amount and denomination and to be numbered consecutively from T-1 and upward (hereinafter called the "Initial Bond(s)") and, in either case, the Initial Bond(s) shall be registered in the name of the initial purchaser(s) or the designee thereof. The Initial Bond(s) shall be the Bonds submitted to the Office of the Attorney General of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the initial purchaser (s). Any time after the delivery of the Initial Bond(s), the Paying Agent/Registrar, pursuant to written instructions from the initial purchaser(s), or the designee thereof, shall cancel the Initial Bond(s) delivered hereunder and exchange therefor definitive Bonds of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the initial purchaser(s), or the designee thereof, and such other information and documentation as the Paying Agent/Registrar may reasonably require. SECTION 9: Forms. A. Forms Generally, The Bonds, the Registration Certificate of the Comptroller of Public Accounts of the state of Texas, the Registration Certificate of Paying Agent/Registrar, and the form of Assignment to be printed on each of the Bonds, shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identification (including identifying numbers and letters of. the Cornrnittee, on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including insurance legends in the event the Bonds, or any maturities thereof, are purchased with insurance and any reproduction of an opinion of counsel) thereon as may, consistently herewith, be established by the city or determined by the officers executing such Bonds as evidenced by their execution. 0240119 -8- Any portion of the text of any Bonds may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Bond. The definitive Bonds and the Initial Bond(s) shall be printed, lithographed, or engraved, typewritten, photocopied or otherwise reproduced in any other similar manner, all as determined by the officers executing such Bonds as evidenced by their execution thereof. Form of Definitive Bond. B. REGISTERED NO. REGISTERED $ UNITED STATES OF AMERICA STATE OF TEXAS CITY OF NORTH RICHLAND HILLS, TEXAS GENERAL OBLIGATION BOND, SERIES 1995 Bond Date: April 1, 1995 Interest Rate: Stated Maturity: CUSIP NO: Registered Owner: Principal Amount: DOLLARS The City of North Richland Hills (hereinafter referred to as the "City"), a body corporate and political subdivision in the County of Tarrant, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, on the Stated Maturity date specified above the Principal Amount hereinabove stated (or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the unpaid principal amount hereof from the Bond Date at the per annum rate of interest specified above computed on the basis of a 360-day year of twelve 30-day months; such interest being payable on February, 15 and August 15 in each year, commencing February 15, 1996. Principal of this Bond is payable at its Stated Maturity or redemption to the registered owner hereof, upon presentation and surrender, at the principal office of the Paying Agent/Registrar executing the registration certificate appearing hereon, or its successor. Interest is payable to the registered owner of this Bond (or one or more Predecessor Bonds, as defined in the 02<10 119 -9- Ordinance hereinafter referenced) whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day. of_ the'dmonth . next. preceding each interest. payment date, and interest shall be paid by the Paying Agent/Registrar by check sent United states Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. All payments of principal of, premium, if any, and interest on this Bond shall be without exchange or collection charges to the owner hereof and in any coin or currency of the united states of America which at the time of payment is legal tender for the payment of public and private debts. This Bond is one of the series specified in its title issued in the aggregate principal amount of $6,000,000 (herein referred to as the "Bonds") for permanent public improvements and public purposes, to wit: $1,100,000 for flood control/storm sewer improvements, $3,225,000 for street improvements, including traffic signalization, drainage incidental thereto and the acquisition of land and right-of-way therefor and $1,675,000 for public safety facilities and equipment (Fire and Police), under and in strict conformity with the Constitution and laws of the State of Texas and pursuant to an Ordinance adopted by the City Council of the City (herein referred to as the "Ordinance"). The Bonds maturing on and after February 15, 2006, may be redeemed prior to their stated Maturities, at the option of the city, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a stated Maturity by lot by the Paying Agent/Registrar), on February 15, 2005, or on any date thereafter, at the redemption price of par, together with accrued interest to the date of redemption and upon 30 days prior written notice being sent by United states Mail, first class postage prepaid, to the registered owners of the Bonds to be redeemed, and subj ect to the terms and provisions relating thereto contained in the Ordinance. If this Bond (or any portion of the principal sum hereof) shall have been duly called for redemption and notice of such redemption duly given, then upon such redemption date this Bond (or the portion of the principal sum hereof to be redeemed) shall become due and payable, and interest thereon shall cease to accrue from and after the redemption date therefor, provided moneys for the payment of the redemption price and the interest on the principal amount to be redeemed to the date of redemption are held for the purpose of such payment by the Paying Agent/Registrar. In the event of a partial redemption of the principal amount of this Bond, payment of the redemption price of such principal 0240119 -10- amount shall be made to the registered owner only upon presentation and surrender of this Bond to the Paying Agent/Registrar at its principal office, and there shall be issued to the registered owner hereof, .without charge, a new Bond or Bonds of like maturity and interest rate in any authorized denominations provided by the Ordinance for the then unredeemed balance of the principal sum hereof. If this Bond is selected for redemption, in whole or in part, the City and the Paying Agent/Registrar shall not be required to transfer this Bond to an assignee of the registered owner within 45 days of the redemption date therefor; provided, however, such limitation on transferability shall not be applicable to an exchange by the registered owner of the unredeemed balance hereof in the event of its redemption in part. The Bonds are payable from the proceeds of an ad valorem tax levied, within the limitations prescribed by law, upon all taxable property in the city. Reference is hereby made to the Ordinance, a copy of which is on file in the principal office of the Paying Agent/Registrar, and to all of the provisions of which the owner or holder of this Bond by the acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the tax levied for the payment of the Bonds; the terms and conditions relating to the transfer or exchange of this Bond; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the Holders; the rights, duties, and obligations of the City and the Paying Agent/Registrar; the terms and provisions upon which this Bond may be discharged at or prior to its maturity or redemption, and deemed to be no longer outstanding thereunder; and for other terms and provisions contained therein. Capitalized terms used herein have the meanings assigned in the Ordinance. This Bond, subject to certain limitations contained in the Ordinance, may be transferred on the Security Register only upon its presentation and surrender at the principal office of the paying Agent/Registrar, with the Assignment hereon duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized agent. When a transfer on the Security Register occurs, one or more new fully registered Bonds of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued by the Paying Agent/Registrar to the designated transferee or transferees. The City and the Paying Agent/Registrar, and any agent of either, shall treat the registered owner whose name appears on the Security Register (i) on the Record Date as the owner entitled to payment of interest hereon, (ii) on the date of surrender of this 02«0119 -11- Bond as the owner entitled to payment of principal hereof at its stated Maturity or its redemption, in whole or in part, and (iii) on any other date as the owner for all other purposes, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. In the event of nonpayment of interest on a scheduled payment date and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by united States Mail, first class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. It is hereby certified, recited, represented and declared that the City is a body corporate and political subdivision duly organized and legally existing under and by virtue of the Constitution and laws of the State of Texas; that the issuance of the Bonds is duly authorized by law; that all acts, conditions and things required to exist and be done precedent to and in the issuance of the Bonds to render the same lawful and valid obligations of the city have been properly done, have happened and have been performed in regular and due time, form and manner as required by the Constitution and laws of the State of Texas, and the Ordinance; that the Bonds do not exceed any Constitutional or statutory limitation; and that due provision has been made for the payment of the principal of and interest on the Bonds by the levy of a tax as aforestated. In case any provision in this Bond shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. The terms and provisions of this Bond and. the Ordinance shall be construed in accordance with and shall be governed by the laws of the State of Texas. IN WITNESS WHEREOF, the City Council of the City has caused this Bond to be duly executed under the official seal of the City as of the Bond Date. CITY OF NORTH RICHLAND HILLS, TEXAS COUNTERSIGNED: Mayor City Secretary (SEAL) 0240119 -12- C. *Form of Reqistration certificate of Comptroller of Public Accounts to appear on Initial Bond(s) only. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER OF PUBLIC ACCOUNTS ( ( ( ( REGISTER NO. THE STATE OF TEXAS I HEREBY CERTIFY that this Bond has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal of office this Comptroller of Public Accounts of the State of Texas (SEAL) D. Form of certificate of Payinq Aqent/Reqistrar to appear on Definitive Bonds onlY. REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR This Bond has been duly issued and registered under the provisions of the within-mentioned Ordinance; the bond or bonds of the above entitled and designated series originally delivered having been approved by the Attorney General of the State of Texas and registered by the comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar. BANK ONE, TEXAS, N.A., Fort Worth, Texas, as Paying Agent/Registrar Registration Date~ By Authorized Signature *NOTE TO PRINTER: Do Not Print on Definitive Bonds 0240119 -13- E. Form of Assiqnment. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee:) .... ................. ........ ...................... .... .......................... (social security or other identifying number: . . . . . . . . . . . . . ................) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints ........... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. DATED: .... ..... ...... ... .... ................. ........... . . . . . . . . . . . . . . . . . . . . . . . . . . NOTICE: The signature on this assignment must correspond with the name of the registered owner as it appears on the face of the within Bond in every particular. Signature guaranteed: F. The Initial Bond(s) shall be in the form set forth in paraqraph B of this section. except that the form of the sinqle fullY reqistered Initial Bond shall be modified as follows: (i) immediately under the name of the bond the headings "Interest Rate " and "Stated Maturity " shall both be omitted. (ii) Paragraph one shall read as follows: Registered Owner: Principal Amount: Dollars The city of North Richland Hills (hereinafter referred to as the "city"), a body corporate and municipal corporation in the county of Tarrant, state of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, the Principal Amount hereinabove stated on February. 15__ineach ,.of the years and in principal installments in accordance with the following schedule: YEAR OF PRINCIPAL MATURITY INSTALLMENTS (Information to be inserted from schedule in section 2 hereof). INTEREST RATE 0'240119 -14- (or so much principal thereof as shall not have been prepaid prior to maturity) and to pay interest on the unpaid Principal Amount hereof from the Bond Date at the per annum rates of interest specified above-computed on the-basis of a 360-day yearc of-twelve 30-day months; such interest being payable on February 15 and August 15 in each year, commencing February 15, 1996. Principal installments of this Bond are payable in the year of maturity to the registered owner hereof, upon its presentation and surrender, at the principal office of Bank One, Texas, N.A., Fort Worth, Texas (the "Paying Agent/Registrar"). Interest is payable to the registered owner of this Bond whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date, and interest shall be paid by the Paying Agent/Registrar by check sent united States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. All payments of principal of, premium, if any, and interest on this Bond shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. SECTION 10: Levv of Taxes. To provide for the payment of the "Debt Service Requirements" of the Bonds, being (i) the interest on the Bonds and (ii) a sinking fund for their redemption at maturity or a sinking fund of 2% (whichever amount is the greater), there is hereby levied, and there shall be annually assessed and collected in due time, form, and manner, a tax on all taxable property in the City, within the limitations prescribed by law, and such tax hereby levied on each one hundred dollars' valuation of taxable property in the City for the Debt Service Requirements of the Bonds shall be at a rate from year to year as will be ample and sufficient to provide funds each year to pay the principal of and interest on said Bonds while Outstanding; full allowance being made for delinquencies and costs of collection; separate books and records relating to the receipt and disbursement of taxes levied, assessed and collected for and on account of the Bonds shall be kept and maintained by the City at all times while the Bonds are Outstanding, and the taxes collected for the payment of the Debt Service Requirements on the Bonds shall be deposited to the credit of a "Special 1995 Bond Account" (the "Interest and Sinking Fund") maintained on the records of the City and deposited in a special fund maintained at an official depository of the City's funds; and such tax hereby levied, and to be assessed and collected annually, is hereby pledged to the payment of the Bonds. 0240119 -15- Proper officers of the City are hereby authorized and directed to cause to be transferred to the Paying Agent/ Registrar for the Bonds, from funds on deposit in the Interest and Sinking Fund, amounts sufficient to-fully pay and discharge promptly each installment of interest and principal of the Bonds as the same accrues or matures or comes due by reason of redemption prior to maturity; such transfers of funds to be made in such manner as will cause collected funds to be deposited with the Paying Agent/Registrar on or before each principal and interest payment date for the Bonds. SECTION 11: Mutilated-Destroved-Lost and Stolen Bonds. In case any Bond shall be mutilated, or destroyed, lost or stolen, the Paying Agent/Registrar may execute and deliver a replacement Bond of like form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Bond, or in lieu of and in substitution for such destroyed, lost or stolen Bond, only upon the approval of the City and after (i) the filing by the Holder thereof with the Paying Agent/Registrar of evidence satisfactory to the Paying Agent/Registrar of the destruction, loss or theft of such Bond, and of the authenticity of the ownership thereof and (ii) the furnishing to the Paying Agent/Registrar of indemnification in an amount satisfactory to hold the City and the Paying Agent/Registrar harmless. All expenses and charges associated with such indemnity and with the preparation, execution and delivery of a replacement Bond shall be borne by the Holder of the Bond mutilated, or destroyed, lost or stolen. Every replacement Bond issued pursuant to this Section shall be a valid and binding obligation, and shall be entitled to all the benefits of this Ordinance equally and ratably with all other Outstanding Bonds; notwithstanding the enforceability of payment by anyone of the destroyed, lost, or stolen Bonds. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement and payment of mutilated, destroyed, lost or stolen Bonds. SECTION 12: satisfaction of Obligation of city. If the City shall payor cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest,on.theBonds, at the times and in the manner stipulated in this Ordinance, then the pledge of taxes levied under this Ordinance and all covenants, agreements, and other obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and satisfied. 0240119 -16- Bonds or any principal amount(s) thereof shall be deemed to have been paid within the meaning and with the effect expressed above in this section when (i) money sufficient to pay in full such Bonds or the principal amount(s) thereof at maturity or to the redemption date therefor, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar, or an authorized escrow agent, or (ii) Government Securities shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Securities have been certified by an independent accounting firm to mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any moneys deposited therewith, if any, to pay when due the principal of and interest on such Bonds, or the principal amount(s) thereof, on and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or waived or if irrevocable arrangements therefor acceptable to the Paying Agent/Registrar have been made) the redemption date thereof. The City covenants that no deposit of moneys or Government Securities will be made under this section and no use made of any such deposit which would cause the Bonds to be treated as "arbitrage bonds" within the meaning of Section 103 (c) of the Internal Revenue Code of 1954, as amended, or regulations adopted pursuant thereto. Any moneys so deposited with the~Paying Agent/ Registrar, or an authorized escrow agent, and all income from Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow agent, pursuant to this section which is not required for the payment of the Bonds, or any principal amount(s) thereof, or interest thereon with respect to which such moneys have been so deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of and interest on the Bonds and remaining unclaimed for a period of four (4) years after the Stated Maturity, or applicable redemption date, of the Bonds such moneys were deposited and are held in trust to pay shall upon the request of the City be remitted to the city against a written receipt therefor. Notwithstanding the above and foregoing, any remittance of funds from the Paying Agent/Registrar to the City shall be subject to any applicable unclaimed property laws of the State of Texas. The term "Government Securities", as used herein, means direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the united States of America, which are non-callable prior to the respective Stated Maturities of the Bonds and may be united States Treasury 0240119 -17- Obligations such as the state and Local Government Series and may be in book-entry form. SECTION 13: -Ordinance. a Contract - -Amendments - Outstandinq Bonds. This Ordinance shall constitute a contract with the Holders from time to time, be binding on the City, and shall not be amended or repealed by the City so long as any Bond remains Outstanding except as permitted in this section. The City may, without the consent of or notice to any Holders, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the consent of Holders holding a majority in aggregate principal amount of the Bonds then Outstanding affected thereby, amend, add to, or rescind any of the provisions of this Ordinance; provided that, without the consent of all Holders of Outstanding Bonds, no such amendment, addition, or rescission shall (1) extend the time or times of payment of the principal of, premium, if any, and interest on the Bonds, reduce the principal amount thereof, the redemption price therefor, or the rate of interest thereon, or in any other way modify the terms of payment of the principal of, premium, if any, or interest on the Bonds, (2) give any preference to any Bond over any other Bond, or (3) reduce the aggregate principal amount of Bonds required to be held by Holders for consent to any such amendment, addition, or rescission. The term "Outstanding" when used in this Ordinance with respect to Bonds means, as of the date of determination, all Bonds theretofore issued and delivered under this Ordinance, except: (1) those Bonds cancelled Agent/Registrar or delivered Agent/Registrar for cancellation; by to the the Paying Paying (2) those Bonds deemed to be duly paid by the City in accordance with the provisions of Section 12 hereof; and (3) those mutilated, destroyed, lost, or stolen Bonds which have been replaced with Bonds registered and delivered in lieu thereof as provided in section 11 hereof. SECTION 14: Covenants to Maintain Tax-Exempt Status. (a) Definitions. When used in this Section, the following terms shall have the following meanings: 0240119 -18- "Closing Date" means the date on which the Bonds are first authenticated and delivered to the initial purchasers against payment therefor. "Code" means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. "Computation Date" has the meaning set forth in section 1.148-1(b) of the Regulations. "Gross Proceeds" means any proceeds as defined in section 1.148-1(b) of the Regulations, and any replacement proceeds as defined in section 1.148-1 (c) of the Regulations, of the Bonds. "Investment" has the meaning set forth in section 1.148-1(b) of the Regulations. "Nonpurpose Investment" means any investment property, as defined in section 148(b) of the Code, in which Gross Proceeds of the Bonds are invested and which is not acquired to carry out the governmental purposes of the Bonds. "Rebate Amount" has the meaning set forth in section 1.148-1(b) of the Regulations. "Regulations" means any proposed, temporary, or final Income Tax Regulations issued pursuant to sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue Code of 1954, which are applicable to the Bonds. Any reference to any specific Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced. "Yield" of (1) any Investment has the meaning set forth in section 1.148-5 of the Regulations; and (2) the Bonds has the meaning set forth in section 1.148-4 of the Regulations. (b) Not to Cause Interest to Become Taxable. The city shall not use, permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respecti vely , would cause the interest on any Bond to become includable in the gross income, as defined in section 61 of the Code, of the owner thereof for federal income tax purposes. 0240119 -19- without limiting the generality of the foregoing, unless and until the City receives a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Bond, the city shall comply with each of the specific covenants in this section. (c) No Private Use or Private Payments. Except as permitted by section 141 of the Code and the Regulations and rulings thereunder, the city shall at all times prior to the last Stated Maturity of Bonds: (1) exclusively own, operate and possess all property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Bonds (including property financed with Gross Proceeds of the Refunded Obligations), and not use or permit the use of such Gross Proceeds (including all contractual arrangements with terms different than those applicable to the general public) or any property acquired, constructed or improved with such Gross Proceeds in any activity carried on by any person or entity (including the united states or any agency, department and instrumentality thereof) other than a state or local government, unless such use is solely as a member of the general public; and (2) not directly or indirectly impose or accept any charge or other payment by any person or entity who is treated as using Gross Proceeds of the Bonds or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds (including property financed with Gross Proceeds of the Refunded Obligations), other than taxes of general application within the city or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. (d) No Private Loan. Except to the extent permitted by section 141 of the Code and the Regulations and rulings thereunder, the city shall not use Gross Proceeds of the Bonds to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be "loaned" to a person or entity if: (1) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes; 0240119 -20- (2) capacity in or service from such property is committed to such person or entity under a take-or-pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any property-acquired, constructed or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. (e) Not to Invest at Hiqher Yield. Except to the extent permitted by section 148 of the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the final Stated Maturity of the Bonds directly or indirectly invest Gross Proceeds in any Investment (or use Gross Proceeds to replace money so invested), if as a result of such investment the Yield from the Closing Date of all Investments acquired with Gross Proceeds (or with money replaced thereby), whether then held or previously disposed of, exceeds the Yield of the Bonds. (f) Not Federallv Guaranteed. Except to the extent permitted by section 149(b) of the Code and the Regulations and rulings thereunder, the City shall not take or omit to take any action which would cause the Bonds to be federally guaranteed within the meaning of section 149(b) of the Code and the Regulations and rulings thereunder. (g) Information Report. The City shall timely file the information required by section 149 (e) of the Code with the Secretary of the Treasury on Form 8038-G or such other form and in such place as the Secretary may prescribe. (h) Rebate of Arbitrage Profits. otherwise provided in section 148(f) Regulations and rulings thereunder: Except to the extent of the Code and the (1) The City shall account for all Gross Proceeds (including all receipts, expenditures and investments thereof) on its books of account separately and apart from all other funds (and receipts, expenditures and investments thereof) and shall retain all records of accounting for at least six years after the day on which the last outstanding Bond is discharged. However, to the extent permitted by law, the City may commingle Gross Proceeds of the Bonds with other money of the city, -.provided ..that the city separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired therewith. (2) Not less frequently than each Computation Date, the City shall calculate the Rebate Amount in accordance with rules set forth in section 148(f) of the 0240119 -21- Code and the Regulations and rulings thereunder. The city shall maintain such calculations with its official transcript of proceedings relating to the issuance of the Bonds until six years after the-final Computation Date. (3) As additional consideration for the purchase of the Bonds by the Purchasers and the loan of the money represented thereby and in order to induce such purchase by measures designed to insure the excludability of the interest thereon from the gross income of the owners thereof for federal income tax purposes, the City shall pay to the united states out of the Interest and Sinking Fund or its general fund, as permitted by applicable Texas statute, regulation or opinion of the Attorney General of the State of Texas, the amount that when added to the future value of previous rebate payments made for the Bonds equals (i) in the case of a Final Computation Date as defined in Section 1.148-3(e) (2) of the Regulations, one hundred percent (100%) of the Rebate Amount on such date; and (ii) in the case of any other Computation Date, ninety percent (90%) of the Rebate Amount on such date. In all cases, the rebate payments shall be made at the times, in the installments, to the place and in the manner as is or may be required by section 148(f) of the Code and the Regulations and rulings thereunder, and shall be accompanied by Form 8038-T or such other forms and information as is or may be required by section 148(f) of the Code and the Regulations and rulings thereunder. (4) The City shall exercise reasonable diligence to assure that no errors are made in the calculations and payments required by paragraphs (2) and (3), and if an error is made, to discover and promptly correct such error within a reasonable amount of time thereafter (and in all events within one hundred eighty (180) days after discovery of the error), including payment to the united States of any additional Rebate Amount owed to it, interest thereon, and any penalty imposed under section 1.148-3(h) of the Regulations. (i) Not to Divert Arbitraqe Profits. Except to the extent permitted by section.. 148 of the Code and the Regulations and rulings thereunder, the city shall not, at any time prior to the earlier of the Stated Maturity or final payment of the Bonds, enter into any transaction that reduces the amount required to be paid to the United States pursuant to Subsection H of this section because such transaction results in a smaller profit or a larger loss than would have resulted if the transaction had been at arm's 0240119 -22- length and had the Yield of the Bonds not been relevant to either party. (j) Elections. The City hereby directs and authorizes the Mayor, City Manager, or Assistant City Manager, individually or jointly, to make elections permitted or required pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate in connection with the Bonds, in the certificate as to Tax Exemption or similar or other appropriate certificate, form or document. SECTION 15: Qualified Tax Exempt Obliqations. In accordance with the provisions of paragraph (3) of subsection (b) of section 265 of the Code, the City hereby designates the Bonds to be "qualified tax exempt obligations" in that the Bonds are not "private activity bonds" as defined in the Code and the reasonably anticipated amount of "qualified tax exempt obligations" to be issued by the City (including all subordinate entities of the city) for the calendar year 1995 will not exceed $10,000,000. SECTION 16: Sale of the Bonds. Pursuant to a public sale for the Bonds, the bid submitted by (herein referred to as the "Purchasers") is declared to be the best bid received producing the lowest net effective interest cost to the City, and the sale of the Bonds to said Purchasers at the price of par and accrued interest to the date of delivery, plus a premium of $ ,is hereby approved and confirmed. Delivery of the Bonds to the Purchasers shall occur as soon as possible upon payment being made therefor in accordance with the terms of sale. SECTION 17: Control and CustodY of Bonds. The Mayor of the city shall be and is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the state of Texas, including the printing and supply of definitive Bonds, and shall take and have charge and control of the Ini tial ~ond (s) pending the approval thereof by the Attorney General, the registration thereof by the Comptroller of Public Accounts and the delivery thereof to the Purchasers. Furthermore, the Mayor, City Secretary, city Manager, and Assistant City Manager, anyone or more of said officials, are hereby authorized and directed to furnish and execute such documents and.certifications relating to the city and the issuance of the Bonds, including certifications as to facts, estimates, circumstances and reasonable expectations pertaining to the use, expenditure, and investment of the proceeds of the Bonds, as may be necessary for the approval of the Attorney General, the registration by the Comptroller of Public Accounts and the delivery of the Bonds to the Purchasers, and, together with the 02-40119 -23- city's financial advisor, bond counsel and the Paying Agent/Registrar, make the necessary arrangements for the delivery of the Initial Bond(s) to the Purchasers and the initial exchange thereof for definitive Bonds. SECTION 18: Official Statement. The Official Statement prepared in the initial offering and sale of the Bonds by the ci ty, together with all addendas, supplements, and amendments thereto issued on behalf of the City, is hereby approved as to form and content, and the City Council hereby finds that the information and data contained in said Official Statement pertaining to the City and its financial affairs is true and correct in all material respects and no material facts have been omi tted therefrom which are necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. The use of such Official Statement in the reoffering of the Bonds by the Purchasers is hereby approved and authorized. SECTION 19: Proceeds of Sale. The proceeds of sale of the Bonds, excluding the accrued interest and premium, if any, received from the Purchasers, shall be deposited in a construction fund maintained at the city's depository bank. Pending expenditure for authorized projects and purposes, such proceeds of sale may be invested in authorized investments and any investment earnings realized shall be expended for such authorized projects and purposes or deposited in the Interest and Sinking Fund as shall be determined by the City Council. Accrued interest and premium, if any, received from the Purchasers as well as all surplus proceeds of sale of the Bonds, including investment earnings, remaining after completion of all authorized projects or purposes shall be deposited to the credit of the Interest and Sinking Fund. SECTION 20: Notices to Holders-Waiver. Wherever this Ordinance provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by united States Mail, first class postage prepaid, to the address of each Holder appearing in the Security Register at the close of business on the business day next preceding the mailing of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Bonds. Where this Ordinance provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice. 0240119 -24- waivers of notice by Holders shall be filed Agent/Registrar, but such filing shall not precedent to the validity of any action taken such waiver. with the Paying be a condition in reliance upon SECTION 21: Cancellation. All Bonds surrendered for payment, redemption, transfer, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly cancelled by it and, if surrendered to the city, shall be delivered to the Paying Agent/Registrar and, if not already cancelled, shall be promptly cancelled by the Paying Agent/Registrar. The city may at any time deliver to the Paying Agent/Registrar for cancellation any Bonds previously certified or registered and delivered which the City may have acquired in any manner whatsoever, and all Bonds so delivered shall be promptly cancelled by the Paying Agent/Registrar. All cancelled Bonds held by the Paying Agent/Registrar shall be returned to the City. SECTION 22: Market Opinion. The Purchasers' obligation to accept delivery of the Bonds is subject to being furnished a final opinion of Fulbright & Jaworski, L.L.P., Dallas, Texas, approving the Bonds as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for the Bonds. An executed counterpart of said opinion shall accompany the global certificates deposited with The Depository Trust Company or a reproduction thereof shall be printed on the definitive Bonds in the event the book entry only system shall be discontinued. SECTION 23: CUSIP Numbers. CUSIP numbers may be printed or typed on the definitive Bonds. It is expressly provided, however, that the presence or absence of CUSIP numbers on the definitive Bonds shall be of no significance or effect as regards the legality thereof and neither the city nor attorneys approving the Bonds as to legality are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Bonds. SECTION 24: Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is intended or shall be construed to confer upon any person other than the City, the Paying Agent/Registrar and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being intended to be and being for the sole and exclusive benefit of the city, the Paying Agent/Registrar and the Holders. SECTION 25: Inconsistent Provisions. All ordinances, orders or resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of 0240119 -25- this Ordinance shall be and remain controlling as to the matters contained herein. SECTION 26: - Governinq Law. This Ordinance shall be construed and enforced in accordance with the laws of the state of Texas and the United States of America. SECTION 27: Effect of Headings. herein are for convenience only and construction hereof. The Section headings shall not affect the SECTION 28: Construction of Terms. If appropriate in the context of this Ordinance, words of the singular number shall be considered to include the plural, words of the plural number shall be considered to include the singular, and words of the masculine, feminine or neuter gender shall be considered to include the other genders. SECTION 29: Severabilitv. If any provision of this Ordinance or the application thereof to any circumstance shall be held to be invalid, the remainder of this Ordinance and the application thereof to other circumstances shall nevertheless be valid, and the city Council hereby declares that this Ordinance would have been enacted without such invalid provision. SECTION 30: Public Meeting. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by V.T.C.A., Government Code, Chapter 551, as amended. SECTION 31: Effective Date. This Ordinance shall be in full force and effect from and after its passage on the date shown below and it is so ordained. PASSED AND ADOPTED, this April 10, 1995. CITY OF NORTH RICHLAND HILLS, TEXAS Mayor ATTEST: City Secretary APPROVED AS TO LEGALITY: (City Seal) City Attorney 02M>1l9 -26- EXHIBIT A PAYING AGENT/REGISTRAR AGREEMENT THIS AGREEMENT entered into as of April 10, 1995· (this "Agreement"), by and between the City of North Richland Hills, Texas (the "I ssuer"), and Bank One Texas, N. A., Fort Worth, Texas, a banking association duly organized and existing under the laws of the united States of America, (the "Bank"). RECITALS WHEREAS, the Issuer has duly authorized and provided for the issuance of its "city of North Richland Hills, Texas, General Obligation Bonds, Series 1995" (the "Securities") in the aggregate principal amount of $6,000,000, which Securities are scheduled to be delivered to the initial purchasers on or about May 16, 1995; and WHEREAS, the Issuer has selected the Bank to serve as Paying Agent/Registrar in connection with the payment of the principal of, premium, if any, and interest on said Securities and with respect to the registration, transfer and exchange thereof by the registered owners thereof; and WHEREAS, the Bank has agreed to serve in such capacities for and on behalf of the Issuer and has full power and authority to perform and serve as Paying Agent/Registrar for the Securities; NOW, THEREFORE, it is mutually agreed as follows: ARTICLE ONE APPOINTMENT OF BANK AS PAYING AGENT AND REGISTRAR Section 1.01. Appointment. The Issuer hereby appoints the Bank to serve as Paying Agent with respect to the Securities, and, as Paying Agent for the Securities, the Bank shall be responsible for paying on behalf of the Issuer the principal, premium (if any), and interest on the Securities as the same become due and payable to the registered owners thereof; all in accordance with this Agreement and the "Bond Resolution" (hereinafter defined). The Issuer hereby appoints the Bank as Registrar with respect to the Securities and, as Registrar for the Securities, the Bank shall keep and maintain for and on behalf of the Issuer books and records as to the ownership of said Securities and with respect to the transfer and exchange thereof as provided herein and in the "Bond Resolution". The Bank hereby accepts its appointment, and agrees to serve as the Paying Agent and Registrar for the Securities. 0240230 section 1.02. Compensation. As compensation for the Bank's services as Paying Agent/Registrar, the Issuer hereby agrees to pay the Bank the fees and amounts set forth in Annex A attached hereto for the first year of this Agreement and thereafter the fees and amounts set forth in the Bank's current fee schedule then in effect for services as Paying Agent/Registrar for municipalities, which shall be supplied to the Issuer on or before 90 days prior to the close of the Fiscal Year of the Issuer, and shall be effective upon the first day of the following Fiscal Year. In addition, the Issuer agrees to reimburse the Bank upon its request for all reasonable expenses, disbursements and advances incurred or made by the Bank in accordance with any of the provisions hereof (including the reasonable compensation and the expenses and disbursements of its agents and counsel) . ARTICLE TWO DEFINITIONS section 2.01. Definitions. For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires: "Acceleration Date" on any Security means the date on and after which the principal or any or all installments of interest, or both, are due and payable on any Security which has become accelerated pursuant to the terms of the Security. "Bank Office" means the designated office of the Bank as indicated on page 11 hereof. The Bank will notify the Issuer in writing of any change in location of the Bank Office. "Bond Resolution" means the resolution, order, or ordinance of the governing body of the Issuer pursuant to which the Securities are issued, certified by the Secretary or any other officer of the Issuer and delivered to the Bank. "Fiscal Year" means the fiscal year of the Issuer, ending September 30th. "Holder" and "Security Holder" each means the Person in whose name a Security is registered in the Security Register. "Issuer Request" and "Issuer Order" means a written request or order signed in the name of the Issuer by the Mayor, City Manager, Assistant City Manager or City 0240230 -2- EXHIB\1 A Secretary, anyone or more of said officials, and delivered to the Bank. "Legal Holiday" means a day on which the Bank is required or authorized to be closed. "Person" means any individual, corporation, partnership, joint venture, association, joint stock company, trust, unincorporated organization or government or any agency or political subdivision of a government. "Predecessor Securities" of any particular Security means every previous Security evidencing all or a portion of the same obligation as that evidenced by such particular Security (and, for the purposes of this definition, any mutilated, lost, destroyed, or stolen Security for which a replacement Security has been registered and delivered in lieu thereof pursuant to Section 4.06 hereof and the Resolution). "Redemption Date" when used with respect to any Security to be redeemed means the date fixed for such redemption pursuant to the terms of the Bond Resolution. "Responsible Officer" when used with respect to the Bank means the Chairman or Vice-Chairman of the Board of Directors, the Chairman or Vice-Chairman of the Executive Committee of the Board of Directors, the President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, the Cashier, any Assistant Cashier, any Trust Officer or Assistant Trust Officer, or any other officer of the Bank customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject. "Security Register" means a register maintained by the Bank on behalf of the Issuer providing for the registration and transfers of Securities. "stated Maturity" means the date specified in the Bond Resolution the principal of a Security is scheduled to be due and payable. Section 2.02. Other Definitions. The terms "Bank," "Issuer," and "Securities (Security)" have the meanings assigned to them in the recital paragraphs of this Agreement. 02<W230 -3- EXHIBIT A The term "Paying Agent/Registrar" refers to the Bank in the performance of the duties and functions of this Agreement. ARTICLE THREE PAYING AGENT Section 3.01. Duties of pavinq Aqent. As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the principal of each Security at its Stated Maturity, Redemption Date, or Acceleration Date, to the Holder upon surrender of the Security to the Bank at the Bank Office. As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the interest on each Security when due, by computing the amount of interest to be paid each Holder and making payment thereof to the Holders of the Securities (or their Predecessor Securities) on the Record Date (as defined in the Resolution). All payments of principal and/or interest on the Securities to the registered owners shall be accomplished (1) by the issuance of checks, payable to the registered owners, drawn on the fiduciary account provided in Section 5.05 hereof, sent by United states mail, first class, postage prepaid, to the address appearing on the Security Register or (2) by such other method, acceptable to the Bank, requested in writing by the Holder at the Holder's risk and expense. Section 3.02. Payment Dates. The Issuer hereby instructs the Bank to pay the principal of and interest on the Securities at the dates specified in the Bond Resolution. ARTICLE FOUR REGISTRAR Section 4.01. Securitv Reqister - Transfers and Exchanges. The Bank agrees to keep and maintain for and on behalf of the Issuer at the Bank Office books and records (herein sometimes referred to as the "Security Register") for recording the names and addresses of the Holders of the Securities, the transfer, exchange and replacement of the Securities and the payment of the principal of and interest on the Securities to the Holders and containing such other information as may be reasonably required by the Issuer . .. and. - subject. _to such. reasonable regulations as the Issuer and Bank may prescribe. All transfers, exchanges and replacement of Securities shall be noted in the Security Register. Every Security surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, the signature on which has been guaranteed by an officer 0240230 -4- EXHIBIT A of a federal or state bank or a member of the National Association of Securities Dealers, in form satisfactory to the Bank, duly executed by the Holder thereof or his agent duly authorized in writing. The Bank may request any supporting documentation it feels necessary to effect a re-registration, transfer or exchange of the Securities. To the extent possible and under reasonable circumstances, the Bank agrees that, in relation to an exchange or transfer of Securities, the exchange or transfer by the Holders thereof will be completed and new Securities delivered to the Holder or the assignee of the Holder in not more than three (3) business days after the receipt of the Securities to be cancelled in an exchange or transfer and the written instrument of transfer or request for exchange duly executed by the Holder, or his duly authorized agent, in form and manner satisfactory to the Paying Agent/Registrar. Section 4.02. Certificates. The Issuer shall provide an adequate inventory of printed Securities to facilitate transfers or exchanges thereof. The Bank covenants that the inventory of printed Securities will be kept in safekeeping pending their use and reasonable care will be exercised by the Bank in maintaining such Securities in safekeeping, which shall be not less than the care maintained by the Bank for debt securities of other governments or corporations for which it serves as registrar, or that is maintained for its own securities. - Section 4.03. Form of Security Reqister. The Bank, as Registrar, will maintain the Security Register relating to the registration, payment, transfer and exchange of the Securities in accordance with the Bank's general practices and procedures in effect from time to time. The Bank shall not be obligated to maintain such Security Register in any form other than those which the Bank has currently available and currently utilizes at the time. The Security Register may be maintained in written form or in any other form capable of being converted into written form within a reasonable time. Section 4.04. List of Security Holders. The Bank will provide the Issuer at any time requested by the Issuer, upon payment of the required fee, a copy of the information contained in the Security Register. The Issuer may also inspect the information contained in the Security Register at any time the Bank is customarily open for business, provided that reasonable 0240230 -5- fiXHISIT A time is allowed the Bank to provide an up-to-date listing or to convert the information into written form. The Bank will. not release or disclose the. contents of the Security Register to any person other than to, or at the written request of, an authorized officer or employee of the Issuer, except upon receipt of a court order or as otherwise required by law. Upon receipt of a court order and prior to the release or disclosure of the contents of the Security Register, the Bank will notify the Issuer so that the Issuer may contest the court order or such release or disclosure of the contents of the Security Register. Section 4.05. Return of Cancelled Certificates. The Bank will, at such reasonable intervals as it determines, cancel and destroy, pursuant to the Securities and Exchange Act of 1934, all Securities in lieu of which or in exchange for which other Securities have been issued, or which have been paid. Section 4.06. Mutilated. Destroved. Lost or Stolen Securi- ties. The Issuer hereby instructs the Bank, subject to the provisions of Section 11 of the Bond Resolution, to deliver and issue Securities in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities as long as the same does not result in an over issuance. In case any Security shall be mutilated, or destroyed, lost or stolen, the Bank may execute and deliver a replacement Security of like form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Security, or in lieu of and in substitution for such destroyed lost or stolen Security, only upon the approval of the Issuer and after (i) the filing by the Holder thereof with the Bank of evidence satisfactory to the Bank of the destruction, loss or theft of such Security, and of the authenticity of the ownership thereof and (ii) the furnishing to the Bank of indemnification in an amount satisfactory to hold the Issuer and the Bank harmless. All expenses and charges associated with such indemnity and with the preparation, execution and delivery of a replacement Security shall be borne by the Holder of the Security mutilated, or destroyed, lost or stolen. Section 4.07. Transaction Information to Issuer. The Bank will, within a reasonable time after receipt of written request from the Issuer, furnish the Issuer information as to the Securities it has paid pursuant to Section 3.01, Securities it has deli vered upon the transfer or exchange of any Securities pursuant to Section 4.01, and Securities it has delivered in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities pursuant to Section 4.06. 0240230 -6- EXHIBIT A ARTICLE FIVE THE BANK Section 5.01.- Duties of Bank. The Bank undertakes to perform the duties set forth herein and agrees to use reasonable care in the performance thereof. Section 5.02. Reliance on Documents, Etc. may conclusively rely, as to the truth of the correctness of the opinions expressed therein, on opinions furnished to the Bank. (a) The Bank statements and certificates or (b) The Bank shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Bank was negligent in ascertaining the pertinent facts. (c) No provisions of this Agreement shall require the Bank to expend or risk its own funds or otherwise incur any financial liability for performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity satisfactory to it against such risks or liability is not assured to it. (d) The Bank may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties. Without limiting the generality of the foregoing statement, the Bank need not examine the ownership of any Securities, but is protected in acting upon receipt of Securities containing an endorsement or instruction of transfer or power of transfer which appears on its face to be signed by the Holder or an agent of the Holder. The Bank shall not be bound to make any investigation into the facts or matters stated in a resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or document supplied by Issuer. (e) The Bank may consult with counsel, and the written advice of such counselor any opinion of counsel shall be full and complete authorization and protection with respect to any action taken, suffered, or omitted by it hereunder in good faith and in reliance thereon. (f) The Bank may exercise any of the powers hereunder and perform any duties hereunder either directly or by or through agents or attorneys of the Bank. 02<10230 -7- ~XHIBIT A section 5.03. Recitals of Issuer. The recitals contained herein with respect to the Issuer and in the Securities shall be taken as the statements of the Issuer, and the Bank assumes no responsibility for their correctness. The Bank shall in no event be liable to the Issuer, any Holder or Holders of any Security, or any other Person for any amount due on any Security from its own funds. section 5.04. May Hold Securities. The Bank, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with the Issuer with the same rights it would have if it were not the Paying Agent/Registrar, or any other agent. section 5.05. Moneys Held by Bank - Fiduciary Account/ Collateralization. A fiduciary account shall at all times be kept and maintained by the Bank for the receipt, safekeeping and disbursement of moneys received from the Issuer hereunder for the payment of the Securities, and money deposited to the credit of such account until paid to the Holders of the Securities shall be continuously collateralized by securities or obligations which qualify and are eligible under both the laws of the State of Texas and the laws of the united States of America to secure and be pledged as collateral for fiduciary accounts to the extent such money is not insured by the Federal Deposit Insurance Corporation. Payments made from such fiduciary account shall be made by check drawn on such fiduciary account unless the owner of such Securities shall, at its own expense and risk, request such other medium of payment. The Bank shall be under no liability for interest on any money received by it hereunder. Subj ect to the applicable unclaimed property laws of the State of Texas, any money deposited with the Bank for the payment of the principal, premium (if any), or interest on any Security and remaining unclaimed for four years after final maturity of the Security has become due and payable will be paid by the Bank to the Issuer, and the Holder of such Security shall thereafter look only to the Issuer for payment thereof, and all liability of the Bank with respect to such moneys shall thereupon cease. Section 5.06. Indemnification. To the extent permitted by law, the Issuer agrees to indemnify the Bank for, and hold it harmless against, any loss, liability, or expense incurred without negligence or bad faith on its part, arising out of or in connection with its acceptance or administration of its duties hereunder, including the cost and expense against any claim or 02<{0230 -8- EXH\B\T A liability in connection with the exercise or performance of any of its powers or duties under this Agreement. Section 5.07. Interpleader. The Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim, demand, or controversy over its person as well as funds on deposit, in either a Federal or state District Court located in the State and County where either the Bank Office or the administrative offices of the Issuer is located, and agree that service of process by certified or registered mail, return receipt requested, to the address referred to in section 6.03 of this Agreement shall constitute adequate service. The Issuer and the Bank further agree that the Bank has the right to file a Bill of Interpleader in any court of competent jurisdiction to determine the rights of any Person claiming any interest herein. section 5.08. DTC Services. It is hereby represented and warranted that, in the event the Securities are otherwise qualified and accepted for "Depository Trust Company" services or equivalent depository trust services by other organizations, the Bank has the capability and, to the extent within its control, will comply with the "Operational Arrangements", effective August 1, 1987, which establishes requirements for securities to be eligible for such type depository trust services, including, but not limited to, requirements for the timeliness of payments and funds availability, transfer turnaround time, and notification of redemptions and calls. ARTICLE SIX MISCELLANEOUS PROVISIONS section 6.01. Amendment. This Agreement may be amended only by an agreement in writing signed by both of the parties hereto. section 6.02. Assiqnment. This Agreement may not be assigned by either party without the prior written consent of the other. Section 6.03. Notices. Any request, demand, authorization, direction, notice, consent, waiver, or other document provided or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed or delivered to the Issuer or the Bank, respectively, - at -.the ... addresses. shown on page 11. section 6.04. Effect of Headinqs. The Article and section headings herein are for convenience only and shall not affect the construction hereof. 02-40230 -9- EXHIBIT A Section 6.05. Successors and Assiqns. All covenants and agreements herein by the Issuer shall bind its successors and assigns, whether so expressed or not. Section 6.06. Severability. In case any provision herein shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Section 6.07. Benefits of Aqreement. Nothing herein, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, any benefit or any legal or equitable right, remedy, or claim hereunder. Section 6.08. Entire Aqreement. This Agreement and the Bond Resolution constitute the entire agreement between the parties hereto relative to the Bank acting as Paying Agent/Registrar and if any conflict exists between this Agreement and the Bond Resolution, the Bond Resolution shall govern. Section 6.09. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute one and the same Agreement. Section 6.10. Termination. This Agreement will terminate (i) on the date of final payment of the principal of and interest on the Securities to the Holders thereof or (ii) may be earlier terminated by either party upon sixty (60) days written notice; provided, however, an early termination of this Agreement by either party shall not be effective until (a) a successor Paying Agent/Registrar has been appointed by the Issuer and such appointment accepted and (b) notice given to the Holders of the Securities of the appointment of a successor Paying Agent/Registrar. Furthermore, the Bank and Issuer mutually agree that the effective date of an early termination of this Agreement shall not occur at any time which would disrupt, delay or otherwise adversely affect the payment of the Securities. The resigning Paying Agent/Registrar may petition any court of competent jurisdiction for the appointment of a successor Paying Agent/Registrar if an instrument of acceptance by a successor Paying Agent/Registrar has not been delivered to the resigning. Paying-Agent/Registrar within sixty (60) days after the giving of such notice of resignation. Upon an early termination of this Agreement, the Bank agrees to promptly transfer and deliver the Security Register (or a copy thereof), together with other pertinent books and records relating 0240230 -10- ~[~H\ß\1 A to the Securities, to the successor Paying Agent/Registrar designated and appointed by the Issuer. The provisions of Section 1. 02 and of Article Five shall survive and remain in full force and effect following the termination of this Agreement. Section 6.11. Governinq Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Texas. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. BANK ONE, TEXAS, N.A., Fort Worth, Texas [SEAL] BY Title: Attest: Title: Address: 500 Throckmorton Suite 704-West Complex Fort Worth, Texas 76102 CITY OF NORTH RICHLAND HILLS, TEXAS BY Mayor (CITY SEAL) Attest: Address: P. O. Box 820609 North Richland Hills, Texas 76180 City Secretary 0240230 ~XHI8IT A -11- CITY OF NORTH RICHLAND ffiLLS, TEXAS (Tarrant County) $6,000,000 GENERAL OBLIGATION BONDS, SERIES 1995 Sealed Bids Due Monday, April 10, 1995, at 4:00 PM, CDT r I J i - Amarillo NORTH RICHLAND HILLS ~ -Dallas Fort Worth * Austin . San Antonio OFFICIAL STATEMENT NEW ISSUE - Book-Entry-Only Dated March 28, 1995 In the opinion of Bond Counsel, interest on the Bonds will be excludable fÌ'om gross income for federal income tax purposes under existing law, subject to the matters described under "Tax Exemption" herein, including the alternative minimum tax on corporations. Dated: April 1, 1995 THE CITY WILL DESIGNATE THE BONDS AS "QUALIFIED TAX-EXEMPT OBLIGATIONS" FOR FINANCIAL INSTITUTIONS $6,000,000 CITY OF NORTH RICHLAND HILLS, TEXAS (Tarrant County) GENERAL OBLIGATION BONDS, SERIES 1995 Due: February 15, as shown below Interest on the $6,000,000 City of North Richland Hills, Texas General Obligation Bonds, Series 1995 (the "Bonds") will accrue fÌ'om the dated date as shown above and will be payable February 15 and August 15 of each year, commencing February 15, 1996, and will be calculated on the basis of a 360-day year of twelve 30-day months. The definitive Bonds will be initially registered and delivered only to Cede & Co., the nominee of The Depository Trust Company ("DTC") pursuant to the Book- Entry-Only System described herein. Beneficial ownership of the Bonds may be acquired in denominations of $5,000 or integral multiples thereof. No physical delivery of the Bonds will be made to the owners thereof. Principal of, premium, if any, and interest on the Bonds will be payable by the Paying Agent/Registrar to Cede & Co., which will make distribution of the amounts so paid to the beneficial owners of the Bonds. See "Bond Information - Book-Entry-Only System" herein. These Bonds were authorized at elections held on various dates, and are direct and voted general obligations of the City of North Richland Hills, Texas (the "City"), payable fÌ'om an ad valorem tax levied, within the limits prescribed by law, on all taxable property located within the City, as provided in the ordinance authorizing the Bonds (the "Ordinance") (see "Bond Information - Authority for Issuance"). The initial Paying Agent/Registrar shall be Bank One, Texas N .A., Fort Worth, Texas (see "Bond Information - Paying Agent/Registrar"). Proceeds fÌ'om the sale of the Bonds will be used for street improvements and construction, drainage improvements, public safety facilities and improvements, and costs associated with the issuance of the Bonds. Amount $150,000 150,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 360,000 MATURITY SCHEDULE Maturity 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Price or Rate Yield Price or Rate Yield Amount $360,000 360,000 360,000 360,000 360,000 360,000 360,000 360,000 360,000 Maturity 2007 2008 2009 2010 2011 2012 2013 2014 2015 The City reserves the right, at its option, to redeem Bonds having stated maturities on and after February 15, 2006, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2005, or any date thereafter, at the par value thereof plus accrued interest to the date fixed for redemption (see "Bond Information - Redemption of Bonds"). The presently outstanding tax supported debt of the City is rated "A" by Moody's Investors Service, Inc. ("Moody's") and "A +" by Standard & Poor's Rating Group, a division of McGraw-Hill ("S&P"). The City also has eight issues outstanding which are rated "Aaa" by Moody's and "AAA" by S&P through insurance by various commercial insurance companies. Requests for ratings for the Bonds have been made to both rating services (see "Other Information - Ratings"). The Bonds are offered for delivery when, as and if issued and received by the purchaser(s) and subject to the approving opinion of the Attorney General of the State of Texas and of Fulbright & Jaworski L.L.P., Bond Counsel, Dallas, Texas. The opinion of Bond Counsel will be printed on or attached to the Bonds (see Appendix C, "Form of Bond Counsel's Opinion"). It is expected that the Bonds will be tendered for delivery to the initial purchaser(s) through The Depository Trust Company. Delivery: Anticipated on or about May 16, 1995 SELECTED DATA FROM THE OFFICIAL STATEMENT This data page was prepared to present the purchasers of the Bonds information concerning the Bonds, the revenues pledged to payment of the Bonds, the description of the revenue base and other pertinent data, all as more fully described herein, and is subject in all respects to the more complete information and definitions contained or incorporated in this Official Statement. The offering of the Bonds to potential investors is made only by means of this entire Official Statement, No person is authorized to detach this data page from this Official Statement or to otherwise use it without the entire Official Statement. The Issuer ... . . . . . . . .. The City is a political subdivision located in Tarrant County, operating as a home-rule city under the authority of Article XI, Section 5 of the Texas Constitution, and pursuant to the general laws of the State of Texas and a charter approved by the voters in 1964 and last amended in August of 1992. The City operates under the Council-Manager form of government where the mayor and seven councilmembers are elected for staggered two-year terms. The Council formulates operating policy for the City while the City Manager is the chief administrative officer. The Bonds . . . , . . . . . . . . Qualified Tax-Exempt Obligations . . . . . . . Security for the Bonds .... Optional Redemption ..,.. Tax Exemption ..,...... Use of Bond Proceeds . . , . . Information regarding the City, including certain fmancial information, is set forth in Appendix A and the Financial Statements. The City is approximately 18.29 square miles in area. The Bonds are being issued in the principal amount of $6,000,000 pursuant to the general laws of the State of Texas, particularly Article 1175, V ATCS, and an Ordinance passed by the City Council of the City (see "Bond Information - Authority for Issuance"). The City will designate the Bonds as "Qualified Tax-Exempt Obligations" for financial institutions (see "Other Information - Qualified Tax-Exempt Obligations for Financial Institutions") . The Bonds constitute direct and voted obligations of the City payable from a continuing ad valorem tax levied on all taxable property within the City in an amount sufficient to provide for payment of principal of and interest on all ad valorem tax debt, within the limits prescribed by law (see "Bond Information - Security for Bonds"), The City reserves the right, at its option, to redeem Bonds having stated maturities on and after February IS, 2006, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February IS, 2005, or any date thereafter, at the par value thereof plus accrued interest to the date fixed for redemption (see "Bond Information -Redemption of Bonds"). In the opinion of Bond Counsel, the interest on the Bonds will be excludable from gross income for federal income tax purposes under existing law, subject to the matters described under "Other Infonnation - Tax Exemption" herein, including the alternative minimum tax on corporations, Proceeds from the sale of the Bonds will be used for street improvements and construction, drainage improvements, public safety facilities and improvements, and costs associated with the issuance of the Bonds, Payment Record ...,..., The City has never defaulted, 4 Selected Issuer Indices Ratio Funded Fiscal Per Capita Per Capita Tax Debt to Year Estimated Taxable Taxable Funded Funded Taxable % of Ended City Assessed Assessed Tax Tax Assessed Total Tax 9-30 Population (I) Valuation Valuation Debt Debt Valuation Collections 1991 46,655 $1,441,022,870 $30,886 $35,005,399 $750 2.43% 101.89% 1992 47,650 1,472,769,802 30,908 39,041,826 819 2.65% 99.84% 1993 48,300 1,444,772,574 29,912 41,865,141 867 2.90% 99.96% 1994 49,631 1,430,354,738 28,820 39,505,979 796 2.76% 100.07% 1995 50,376(2) 1,507,026,159 29,916 42,135,141(3) 836 2.80% 82.17%(4) (1) Estimates of North Central Texas Council of Governments. (2) Estimate of City Planning Department. (3) Projected, includes the General Obligation Bonds, does not include the Sales Tax Revenue Bonds being offered simultaneously with the General Obligation Bonds. (4) Collections for part year only, through February 1, 1995, 5 BOND INFORMATION Authority for Issuance The Bonds were authorized at elections held on various dates, and passed by a majority of the participating voters. The City is authorized to incur debt in accordance with the general laws of the State of Texas, includes Article 1175, VATCS, and as authorized in the City Charter adopted by voters in 1964 and last amended in August of 1992. Security for Bonds All taxable property within the City is subject to a continuing direct annual ad valorem tax levied by the City sufficient to provide for the payment of principal of and interest on all obligations payable in whole or in part from ad valorem taxes, which tax must be levied within limits prescribed by law, The City operates under a home-rule charter as authorized by Article XI, Section 5 of the Constitution of the State of Texas which limits the maximum ad valorem tax rate to $2.50 per $100 assessed valuation for all City purposes. However, the Home Rule Charter of the City restricts the maximum tax rate to $1.50 per $100 Taxable Assessed Valuation for all City purposes. Redemption of Bonds The City reserves the right, at its option, to redeem Bonds having stated maturities on and after February 15, 2006, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2005, or any date thereafter, at the par value thereof plus accrued interest to the date fixed for redemption. If less than all of the Bonds are to be redeemed and if less than all of a maturity is to be redeem~, the Paying Agent/Registrar shall detennine by lot the Bonds, or portions thereof, within such maturity to be redeemed. If a Bond (or any portion of the principal sum thereot) shall have been called for redemption and notice of such redemption shall have been given, such Bond (or the principal amount thereof to be redeemed) shall become due and payable on such redemption date and interest thereon shall cease to accrue from and after the redemption date provided funds for the payment of the redemption price and accrued interest thereon are held by the Paying Agent/Registrar on the redemption date. Not less than 30 days prior to a redemption date for the Bonds, the City shall cause a notice of redemption to be sent by United States mail, first class, postage prepaid, to each registered owner of a Bond to be redeemed, in whole or in part, at the address ofthe registered owner appearing on the registration books of the Paying Agent/Registrar at the close of business on the business day next preceding the date of mailing such notice. Any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the bondholder. Book-Entry-Only System The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee). One fully- registered certificate will be issued for each maturity of the Bonds in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning ofthe New York Banking Law, a member ofthe Federal Reserve System, a "clearing corporation" within the meaning of the New York Unifonn Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds securities that its participants ("Direct Participants") deposit with DTC. DTC also facilitates the settlement among Participants of securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book-entry changes in Participants' accounts, thereby eliminating the need for physical movement of securities certificates. Direct Participants include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the American Stock Exchange, Inc., and the National Association of Securities Dealers, Inc, Access to the DTC system is also available to others such as securities brokers and dealers, banks, and trust companies that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). The Rules applicable to DTC and its Participants are on file with the Securities and Exchange Commission. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confinnation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interest in the Bonds are to be accomplished by entries made on the books of 6 Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except in the event that use of the book-entry system for the Bonds is discontinued. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co. The deposit of Bonds with DTC and their registration in the name of Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which mayor may not be the Beneficial Owners. The Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Redemption notices shall be sent to Cede & Co. If less than all of the Bonds within an issue are being redeemed, DTC's practice is to detennine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co, will consent or vote with respect to the Bonds. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co. 's consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Principal and interest payments on the Bonds will be made to DTC. DTC's practice is to credit Direct Participants' accounts on payable date in accordance with their respective holdings shown on DTC's records unless DTC has reason to believe that it will not receive payment on payable date. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer fonn or registered in "street name," and will be the responsibility of such Participant and not of DTC, the Paying Agent/Registrar or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal and interest to DTC is the responsibility of the City, disbursement of such payments to Direct Participants shall be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving reasonable notice to the City. Under such circumstances, in the event that a successor securities depository is not obtained, Bonds are required to be printed and delivered. The City may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository). In that event, Bonds will be printed and delivered. Use of Certain Tenns in Other Sections of this Official Statement. In reading this Official Statement it should be understood that while the Bonds are in the Book-Entry-Only System, references in other sections of this Official Statement to registered owners should be read to include the person for which the Participant acquires an interest in the Bonds, but (i) all rights of ownership must be exercised through DTC and the Book-Entry-Only System, and (ii) except as described above, notices that are to be given to registered owners under the Ordinance will be given only to DTC. Infonnation concerning DTC and the Book-Entry-Only System has been obtained from DTC and is not guaranteed as to accuracy or completeness by, and is not to be construed as a representation by the City or the Purchasers. Paying Agent/Registrar The initial Paying Agent/Registrar is Bank One, Texas N .A., Fort Worth, Texas. In the Ordinance, the City retains the right to replace the Paying Agent/Registrar. The City covenants to maintain and provide a Paying Agent/Registrar at all times while the Bonds are outstanding and any successor Paying Agent/Registrar shall be a commercial bank or trust company organized under the laws of the State of Texas or other entity duly qualified and legally authorized to serve as and perfonn the duties and services of Paying Agent/Registrar for the Bonds. Upon any change in the Paying Agent/Registrar for the Bonds, the City agrees to promptly cause a written notice thereof to be sent to each registered owner of the Bonds by United States mail, first class, postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. 7 Transfer, Exchange and Registration In the event the Book-Entry-Only System should be discontinued, the Bonds may be transferred and exchanged on the registration books of the Paying Agent/Registrar only upon presentation and surrender thereof to the Paying Agent/Registrar and such transfer or exchange shall be without expense or service charge to the registered owner, except for any tax or other governmental charges required to be paid with respect to such registration, exchange and transfer. A Bond may be assigned by the execution of an assignment fonn on the Bond or by other instrument of transfer and assignment acceptable to the Paying Agent/Registrar. A new Bond or Bonds will be delivered by the Paying Agent/Registrar, in lieu of the Bond being transferred or exchanged, at the principal office of the Paying Agent/Registrar, or sent by United States mail, first class, postage prepaid, to the new registered owner or his designee. To the extent possible, new Bonds issued in an exchange or transfer of Bonds will be delivered to the registered owner or assignee of the registered owner in not more than three business days after the receipt of the Bonds to be cancelled, and the written instrument of transfer or request for exchange duly executed by the registered owner or his duly authorized agent, in fonn satisfactory to the Paying Agent/Registrar. New Bonds registered and delivered in an exchange or transfer shall be in any integral multiple of $5,000 for anyone maturity and for a like aggregate principal amount as the Bond or Bonds surrendered for exchange or transfer. See "Book-Entry-Only System" herein for a description of the system to be utilized initially in regard to ownership and transferability of the Bonds. Limitation on Transfer of Bonds Called for Redemption Neither the City nor the Paying Agent/Registrar shall be required to transfer or exchange any Bond called for redemption, in whole or in part, within 45 days of the date fixed for redemption; provided, however, such limitation of transfer shall not be applicable to an exchange by the registered owner of the uncalled balance of a Bond. Record Date for Interest Payment The record date ("Record Date") for the interest payable on any interest payment date means the close of business on the last business day of the preceding month. In the event of a non-payment of interest on a scheduled payment date, and for 30 days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest ("Special Payment Date", which shall be 15 days after the Special Record Date) shall be sent at least five business days prior to the Special Record Date by United States mail, first class postage prepaid, to the address of each Holder of a Bond appearing on the registration books of the Paying Agent/Registrar at the close of business on the last business day next preceding the date of mailing of such notice. Use of Bond Proceeds Proceeds from the sale of the Bonds will be used for street improvements and construction, drainage improvements, public safety facilities and improvements, and costs associated with the issuance of the Bonds. Sources and Uses of Funds The construction program will be funded approximately as follows: Sources: Proceeds from Sale of Bond Accrued Interest Total Sources of Funds $ 6,000,000.00 39.000,00 $ 6,039,000,00 Uses: Cost of Street Construction and Improvements Cost of Drainage Improvements Cost of Public Safety Improvements Deposit to Debt Service Fund Total Uses of Funds $ 3,225,000.00 1,100,000.00 1,675,000.00 39,000.00 $ 6,039,000.00 8 TAX INFORMATION Ad Valorem Tax Law The appraisal of property within the City is the responsibility of the Tarrant Appraisal District ( the "Appraisal District"). Excluding agricultural and open-space land, which may be taxed on the basis of productive capacity, the Appraisal District is required under the Property Tax Code to appraise all property within the Appraisal District on the basis of 100 % of its market value and is prohibited from applying any assessment ratios. The value placed upon property within the Appraisal District is subject to review by an Appraisal Review Board, consisting of three members appointed by the Board of Directors of the Appraisal District. The Appraisal District is required to review the value of property within the Appraisal District at least every three years. The City may require annual review at its own expense, and is entitled to challenge the detennination of appraised value of property within the City by petition filed with the Appraisal Review Board. Reference is made to the VTCA, Property Tax Code, for identification of property subject to taxation; property exempt or which may be exempted from taxation, if claimed; the appraisal of property for ad valorem taxation purposes; and the procedures and limitations applicable to the levy and collection of ad valorem taxes. Article VIII of the State Constitution ("Article VIII") and State law provide for certain exemptions from property taxes, the valuation of agricultural and open-space lands at productivity value, and the exemption of certain personal property from ad valorem taxation. Under Section I-b, Article VIII, and State law, the governing body of a political subdivision, at its option, may grant: (1) An exemption of not less than $3,000 of the market value of the residence homestead of persons 65 years of age or older and the disabled from all ad valorem taxes thereafter levied by the political subdivision; (2) An exemption of up to 20% of the market value of residence homesteads; minimum exemption $5,000. State law and Section 2, Article VIII, mandate an additional property tax exemption for disabled veterans or the surviving spouse or children of a deceased veteran who died while on active duty in the anned forces; the exemption applies to either real or personal property with the amount of assessed valuation exempted ranging from $1,500 to a maximum of $3,000. Article VIII provides that eligible owners of both agricultural land (Section I-d) and open-space land (Section I-d-l), including open-space land devoted to farm or ranch purposes or open-space land devoted to timber production, may elect to have such property appraised for property taxation on the basis of its productive capacity. The same land may not be qualified under both Section I-d and I-d-1. Nonbusiness personal property, such as automobiles or light trucks, are exempt from ad valorem taxation unless the governing body of a political subdivision elects to tax this property. Boats, aircraft and recreational vehicles owned as nonbusiness property are exempt from ad valorem taxation. Article VIII, Section I-j of the Texas Constitution provides for "freeport property" to be exempted from ad valorem taxation. Freeport property is defined as goods detained in Texas for 175 days or less for the purpose of assembly, storage, manufacturing, processing or fabrication. The exemption became effective for the 1990-91 fiscal year and thereafter unless action to tax such property has been taken prior to April 1, 1990. Decisions to continue to tax may be reversed in the future; decisions to exempt freeport property are not subject to reversal. The City took action to tax freeport property as of February 27, 1995. Tax Abatements In 1989, the City Council adopted a resolution setting guidelines and criteria for granting abatements in reinvestment zones created within the City. These guidelines specifically note that incentives are limited to companies which create new wealth and do not adversely affect existing businesses operating within the City. Since 1989, the City has abated taxes for only two companies: (1) The Council voted to abate taxes on 50% of $3,176,871 in new construction by Aegan/Life Investors Insurance for 10 years beginning in 1989, Aegan/Life Investors Insurance is a new corporate citizen with 650 employees. (2) The Council voted in 1992 to abate for 5 years 100% of the taxes on more than $1.5 million in improvements to two facilities by Tecnol Medical Products, lnc" an existing corporate citizen with 850 employees. The abatement covers the period from 1993 (payable in January, 1994) through 1997 (payable in January, 1998), a period designated by Tecnol. The abatement agreement does not include personal property or land and improvements. Total abatement assessed value for Fiscal Year 1995 is $6,619,456. 9 r---·· I The Tax Law as it applies to the City: The City grants an exemption to the market value of the residence homestead of persons 65 years of age or older or disabled of $29,000. The City has granted an additional exemption of 15% of the market value of residence homesteads. The City does not tax nonbusiness personal property and contracts with Tarrant County Tax Office to collect its ad valorem taxes. Valuation, Exemptions and Debt Obligations 1994/95 Market Valuation Established by Tarrant Appraisal District $ 1,627,991,218 $120,446,934 697,500 6,336,675 50,729,908 4,492,096 227,300 6.619.456 189.549.869 $ 1,438,441,349 68.584.810 $ 1,507,026,159 $ 36,015,141 120,000 525,548 6.000.000 $ 42,660,689 $ 4,870,000 120,000 4.990.000 $ 37,670,689 $ 925,099 Less Exemptions/Reductions at 100% Market Value: Residence Homestead Disabled Veterans Agricultural Land Use Over 65 Disabled Persons Indigent Housing Abatement Value Loss Adjusted Taxable Assessed Valuation Add Minimum Value of Contested Properties 1993/94 Taxable Assessed Valuation City Funded Debt Payable From Ad Valorem Taxes (as of 2-28-95) (I) General Obligation Bonds Contract Revenue Bonds Capital Leases - General Obligation Notes Payable (2) The General Obligation Bonds Less: Self-Supporting Debt Tax and Golf Course Revenue Refunding Bonds Trinity River Authority Revenue Bonds Net Funded Debt Payable From Ad Valorem Taxes Interest and Sinking Fund (as of 2-1-95) Ratio Net Funded Debt to Taxable Assessed Valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.50% 1995 Estimated Population - 50,376 (3) Per Capita Taxable Assessed Valuation - $29,916 Per Net Capita Funded Debt - $748 (1) The above statement of indebtedness does not include $2,000,000 Park and Recreation Facilities Development Corporation Sales Tax Revenue Bonds, being sold simultaneously with the Bonds, and $11 ,185,000 Park and Recreation Facilities Development Corporation Sales Tax Revenue Bonds, presently outstanding, which are payable solely from the receipts of a 1/2 of 1 % local sales and use tax, and $13,963,615 WatelWorks and Sewer System Revenue Bonds, which are payable solely from the net revenues of the System, as defined in the bond ordinance authorizing the bonds. (2) The Capital Leases have been declared funded debts of the City and are included in the Debt Service Fund Tax Levy. (3) Estimate of City Planning Department. 10 ;... "" o ~ .... ~ u ;... .0 '" = .S .... ~ =' -; ~ "ä! '" ~ '" < Q,j :is ~ )< = ¡... 'õ3 ~¡:: ~~~~~~ o;;~$~~¡:::: \Ò\ÒC'ÏMO\Ò V'¡ - ~~~~~~~~ ~~~~:::õ:;8 o 0000008 - M 0\ 0\ - V'¡OOMOO-IQt--~Mt--M8M O\MOO-MOO- MMIQ 0 VV'¡V-V'¡-V __MV'¡OO c~66"""~N6"":-~60\'~v ;:3Mt--t--o\MMM-OIQV'¡OOV'¡ OVOO\t--V'¡V'¡O\MIQMt-- t-- S\Ó....:-....:-g....:-o\'......~~>rÎ· V'¡ <;:~~ ~~~M~~ ~ o M .... 0) .D S 2 0) tI') "'2 " c UJ .... 0; ~ II) 'õ3 ~¡:: ~~~~~~ ~MOOf"1....-1N MOO-OOV'¡O': OÒV'¡ C'ÏC'Ï0 10 V'¡ - ~~~~~~ ["--.00\,0....-1.....-1.....-4 r--r:-r--: "'"""'.....-4 0 o 00 00 0;; uv '" 0\ ¡¡~ .... .£ 0) ;:3 0;; :> "'2 '" "i~ o;;:;~~~~~~V'¡~&J8~ OVIQV'¡MMO\-~V'¡V'¡MOO .....,¡660\'0\'\Ó~..,¡..................0\'00 §~~~~~S~~;;:~g~~ ~N"'¡>rÎ>rÎOO''''¡NOÔ'''':-~' 10 <ò!:O\MV ~-M::!;- - II) ~~~~~~ .....-4....-fM\OM"'I:t Mt-:M-VOO $V'¡C'ÏC'Ï0~ ~~~~~~~ IQV'¡O\O-Mo\ t--r-M--OM 0""';00 000 « 0) :ö 0; >< 0; ~It) 0\ 0\ - ~3 ~¡:: ~~~$~~~~~~o;;~8 _Mv__Or-OOOV'¡MV- cN..,¡O\,O\,\ÓO\,N......N....:-....:-..,¡IQ ;:3~~:8~~~~~$~\;õf;)8 ~....:-0\'0·~r-·............6..,¡0\'-· It) .....V'¡o\VM o\-MV- ...... O. M- II) ~gc?;:!: Mr- It) No\' M OM r- .....-4", C""I", ....... MOO V _10 V 10._ V II) ~~ ~~ o o - - M 010 M V'¡ ~~ V'¡ 0\ r- M 0\'0\' - 00 10. - I 00 9¡.:2 V It) M o M V II) :8~&¡~ .....-4 00 ...... ....-I M' 0\' 10 10 OvMM "1."1.0\0 It) 0\ OCr- VOOvO t'", ...... 1.1') II) ... '" '" 2 c 8 .9 Q.. rI'J rI'J ~ ~ ~.~ S '" " _ '" iUCC ~ ;... § a ~ ~ .9 ::> 'ë ~ > :5 0;; "¿) '" o;S ",8 ¡~o;;~ e.g.€ o~~ ~~ o;;~]iU .£iUiU ~ ..!. .'!J C - § S g¡ ] ~ i:' ~ ~ g iU ~ SOD'3 ~o.c ~ 0" 0-5 0 iU §Q..;:3 u~¿t]~ æu~¿o~~~~~ ~~.'!Jj~o;; ~o;;o;;o;;o;;~~S~"'2 .~ ·2 3 ~ ~ 1~ ~ t § § § § -: 13 ~ .a rn ~ ~ 0;::: ~ ¡;; iU .¡:: C '" ~ '" ~ >. '" UJ 0; '" M 0; s... 0; ~ iU ~ iU t: .; .... ~ 1ï! ]]~eÊsg¡~Q..Q..Q..Q..&~~~< ~~><~8]]~~~~£~~z~ iiiiiii~~~~~~3~~~ ~~~~~~~~~~~~~¡::~~~ II) 11 - 0\ o~ ....M æ ~ iU.D =' S "';;£ ~ "'2t1') '2 ~ c:>.c c:>.UJ « .... iU i'3 ~>- >< ~ 'õ3 ~¡:: ~~~~~~ ~~~õë!~~ M\ÒMV'¡Or-: It) - ~~~~~~ ~&:;gg~8~ ~oòooo - ~I~ ~8 08 - (;;~~~~:2~~~0\0 OOV-MOOMOOV'¡V~ c ......6......g6....:-..,¡v·v·~ ;:3:::~~It)~(;;~;:!:~~ ~N6..,¡N......\Ó>rÎ\ÓOÔ..,¡ <:2:::1t)0\ ~-M~ 10100 oo-t-- M.V'¡ 00 -OOM r-vM 00. 00 0 -0- ~~~ V'¡ - MOO MOO ~M O\t-- O\t-- . It) - II) II) ~ ~""8 oS. ~¡::~ ~~~~~ O\r-lt)vM IQ_OOt--M \ò"¡-ior-: - ~~~~~~~~ ~$:8~:::õ:28 0""';OÒ00008 - 0;; u tE~ 0\ - ~~~~~;;!;o;;:::¡::::~ò!:8~ IQMMMMMOOIt)It)Mr-V'¡M C ......o\'g~......OÔ>rÎ-·\Ó~N~1t) go;;~O\~~~~~\;õ~o;;oo~ S80\,....:-O\,NN..,¡\Ó....:-..........:- M «O\~V'¡r--~-M::!; - ~~8 ~f"100 ~:2$ r-O\r- ~~~ IQ.-v II) II) '" = .9 .'!J '" õ.. ~.,g '" S ~ S·~ iU ~ .S à à ~ ·e 5 0;; S UJ "¿) ~ 's 8"¡¡j '" .~ 0;; ~ e -3 O u.., u..o; ;;:; c:>. =' 0;; '" iU . ¡:: .£ ~ ",....S]=iUS"'~ iU 2Ik1ð~~~~s~~J~~lg ð~~t]~¡;;æ~8~¿õ~~i~ . "'j~o;;~o;;o;;o;;o;;o;;~:> S"'2 ~ ~ .š 'U'] .~ t § § § § § - "'2 ~ '" iU 0) ¡;; ~ ~ ~ ¡;; ~ 5 ~ ~ ~ ~'2 ~ ~ ]] ~ ~ S §~Q..Q..ææ,:; ~~~< ~ ~ :> < u.. u. ¡;; ~ ~ ~ ~ ;:e ò: < ~ ~ ......:....:...-4"".......:_..__ bÐbJ)bÐbÐbJ)_] ¡,j ø$ ~~~~~~~~~~~~~¡::~~ Valuation and Funded Debt History Ratio Funded Fiscal Taxable Funded Debt Debt to Year Taxable Assessed Outstanding Taxable Funded Ended Estimated Assessed Valuation at End Assessed Debt 9-30 Population (I) Valuation Per Capita of Year Valuation Per Capita 1990 45,895 $ 1,465,672,375 $31,935 $ 33,916,810 2.31% $739 1991 46,655 1,441,022,870 30,886 35,005,399 2.43% 750 1992 47,650 1,472,769,802 30,908 39,041,826 2.65% 819 1993 48,300 1,444,772,574 29,912 41,865,141 2.90% 867 1994 49,631 1,430,354,738 28,820 39,505,979 2.76% 796 1995 50,376(2) 1,507,026,159 29,916 42,135,141(3) 2.80% 836 (1) Estimates of North Central Texas Council of Governments. (2) Estimate of City Planning Department. (3) Projected, includes the General Obligation Bonds, does not include the Sales Tax Revenue Bonds being offered simultaneously with the General Obligation Bonds. Tax Rate, Levy and CollfCtion History Fiscal Year Ended 9-30 1990 1991 1992 1993 1994 1995 Distribution Tax Rate $ 0.50493 0.50493 0.52354 0.52354 0.57000 0.57000 General Fund $ 0.24604 0.26297 0.26957 0.25225 0.28229 0.29193 Interest and Sinking Fund $0,25889 0.24196 0,25397 0.27129 0.28771 0,27807 Tax Levy $ 7,400,619 7,276,156 7,710,538 7,563,962 8,153,022 8,609,229 % Current Collections 96,37% 98.79% 98.37% 98.91 % 98.69% 81.73%(1) % Total Collections 98,61 % 101.89% 99,84% 99,96% 100.07% 82. 17 %,1) (1) Collections for part year only, through February 1, 1995. Property within the City is assessed as of January 1 of each year (except for business inventory which may, at the option of the taxpayer, be assessed as of September 1); taxes become due October 1 of the same year, and become delinquent on February 1 of the following year. Split payments are not permitted, Discounts are not allowed. Taxpayers 65 years old or older are permitted by State law to pay taxes on homesteads in four installments with the first due on February 1 of each year and the fmal installment due on August 1. Charges for penalty and interest on the unpaid balance of delinquent taxes are made as follows: Month Penalty Interest Total Fcbruary 6% 1% 7% March 7% 2% 9% April 8% 3% 11 % May 9% 4% 13% June 10% 5% 15% July 12% 6% 18% After July, penalty remains at 12 %, and interest increases at the rate of 1 % each month. In addition, if an account is delinquent in July, a 15% attorney's collection fee is added to the total tax penalty and interest charge, Under certain circumstances, taxes which become delinquent on the homestead of a taxpayer 65 years old or older incur a penalty of 8% per annum with no additional penalties or interest assessed. In general, property subject to the City's lien may be sold, in whole or in parcels, pursuant to court order to collect the amounts due the City and all other taxing entities. Federal law does not allow for the collection of penalty and interest against an estate in bankruptcy. Federal bankruptcy law provides that an automatic stay of action by creditors and other entities, including governmental units, goes into effect with the filing of any petition in bankruptcy, The automatic stay prevents governmental units from foreclosing on property and prevents liens for post-petition taxes from attaching to property and obtaining secured creditor status unless, in either case, an order lifting the stay is obtained from the bankruptcy court. In many cases post-petition taxes are paid as an administrative expense ofthe estate in bankruptcy or by order of the bankruptcy court. 12 The Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), enacted on August 9, 1989, contains certain provisions which affect the time for protesting property valuations, the fixing of tax liens and the collection of penalties and interest on delinquent taxes on real property owned by the FDIC and the RTC. Under FIRREA, real property held by the FDIC or RTC is still subject to ad valorem taxation, but (i) no real property of the FDIC or RTC is subject to foreclosure or sale without the consent of the FDIC or RTC and no involuntary lien will attach to such property, (ü) the FDIC or RTC is not liable for any penalties or filles, including those arising from the failure to pay any real property tax when due and (iii) notwithstanding the failure of a person to challenge an appraisal in accordance with State law, such value will be determined as of the period for which such tax is imposed. Ten Largest Taxpayers Name of Taxpayers J. M. B. Income Properties (Fonnerly North Hills Mall) Hospital Corporation of America Tecnol, Inc, Texas Utilities Electric Primary Properties, Inc. H&M Food Company Camco Development Company E-Systems, Inc. Pool Trust Home Depot, Inc. Hudiburg Trust Tax Rate Limitation Nature of Property Shopping mall Hospital Medical supplies Electric Utility Department stores Food processor Real estate development Land and apartments Commercial Retailer Automobile dealership 1994/95 Taxable Assessed Valuation $ 23,880,632 18,059,275 17,903,054 16,809,677 14,430,662 13,863,561 11,023,761 9,979,969 9,793,238 9.302.354 $145.046.183 % of Total Taxable Assessed Valuation 1.37% 1.03% 1.03% 0.96% 0.83% 0.79% 0.63% 0.57% 0.56% 0.53% 8.30% All taxable property within the City is subject to the assessment, levy and collection by the City of a continuing, direct annual ad valorem tax sufficient to provide for the payment of principal of and interest on all ad valorem tax debt within the limits prescribed by law. Article XI, Section 5 of the Texas Constitution is applicable to the City, and limits its maximum ad valorem tax rate to $2.50 per $100 Taxable Assessed Valuation for all City purposes. However, the Home Rule Charter of the City limits the maximum tax rate to $1.50 per $100 Taxable Assessed Valuation for all City purposes. By each September 1 or as soon thereafter as practicable, the City Council adopts a tax rate per $100 taxable value for the current year. The tax rate consists of two components: (1) a rate for funding of maintenance and operation expenditures, and (2) a rate for debt service. Under the VTCA Property Tax Code: The City must annually calculate and publicize its "effective tax rate" and "rollback tax rate". The City Council may not adopt a tax rate that exceeds the lower of the rollback tax rate or 103% of the effective tax rate until it has held a public hearing on the proposed increase following notice to the taxpayers and otherwise complied with the Property Tax Code. If the adopted tax rate exceeds the rollback tax rate the qualified voters of the City by petition may require that an election be held to detennine whether or not to reduce the tax rate adopted for the current year to the rollback tax rate. "Effective tax rate" means the rate that will produce last year's total tax levy (adjusted) from this year's total taxable values (adjusted). "Adjusted" means lost values are not included in the calculation of last year's taxes and new values are not included in this year's taxable values. "Rollback tax rate" means the rate that will produce last year's maintenance and operation tax levy (adjusted) from this year's values (adjusted) multiplied by 1.08 plus a rate that will produce this year's debt service from this year's values (unadjusted) divided by the anticipated tax collection rate. The Property Tax Code provides that certain cities and counties in the State may submit a proposition to the voters to authorize an additional one-half cent sales tax on retail sales of taxable items. If the additional tax is levied, the effective tax rate and the rollback tax rate calculations are required to be offset by the revenue that will be generated by the sales tax in the current year. The City does not collect the additional one-half cent sales tax. Reference is made to the Property Tax Code for definitive requirements for the levy and collection of ad valorem taxes and the calculation of the various defined tax rates. 13 DEBT INFORMATION õ3 "0 '$. ~ ~ '$. ~ '- P- o 0 0 0 V) -.:t -.:t ...... 0 0 '03 .~ N 0\ 0\ N 0 ~ ,§ +-' vi ..0 0-; 0 V) 0 0 p::: M ~ 00 0\ 0 p.. ...... ~ -.:t 00 N 0 -.:t M V) M ...... r- ...... V) ...... ~ N 0\ ...... 0 0 00 00 -.:t M N V) 0 00 -.:t 0\ -.:t ...... 0\ V) M V) ~ -.:t ...... 00 0 0 V) "0 ~ V) ~ ~ -.:t 0, ~ -.:t, M 0\, ...... 0\, ~, 'n. 0 ~ 0 r-, 0\, ...... r-, -.:t § M' -.:t' r-' 00' ...... 0' N ~' V) ~' ...... V) V) 0\ .,¡ 0\' r-' ...... 0\ V)' ...... 00' 00 V) r- V) 0 t<') 0 00 0 r- r- oo r- ...... N N 00 M N 0\ r- 0\ .... ¡..... N r-, r- M, 00 r- r- ~ ~ V) V) 0\, 0\, M, V) 0 0\, N, r- M M M, Ö V)' V) V)' V) -.:t' -.:t' -.:t' .,¡ -.:t' .,¡ -.:t' t<') t<') M N' N' V) r- f7"! f7"! r- V) V) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 r- ...... N r- V) V) V) V) V) V) V) 0 0 0 0 0 0 0 0 0 0 ~ 3 -.:t, ...... M, r- "\. r-, "\. r- N r-, t<') 0\ 'n. ...... r- M 0\, V) ...... r-, ~, V) V) V) 0 ...... N N' M' M N' 00 V) N' 00' v1 ...... 00' V)' ...... ...... 0 N M N ~ -.:t N 0 00 ~ -.:t 00 V) M ...... 00 ~ -.:t ...... 0\ r- r- ¡..... V) V) V) ~ ~ ~ ~ V) V) V) V) V) V) V) -.:t -.:t -.:t -.:t M M V) 0' ...... f7"! f7"! rJ) N r- V) In 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 r- -g ...... ~ '-" -.:t, N r- V) V) V) V) V) V) V) 0 0 0 0 0 0 0 0 0 0 ~, 0 +-' ...... M, r- "\. r-, N r-, N r-, M 0\ 'n. ...... r- M, 0\, V) ...... r-, p:¡ rJ) V) V) V) 0' ...... ...... N' N M' t<') N 00' V) N' 00' V) ...... 00' V) ...... ...... 0 N r- 0 .... V) 00 r- ~ -.:t N 0 00 ~ -.:t N 0\ r- V) N 0 00 V) M ...... V) ¡:: 0 M t<') t<') t<') M M N N N N ...... ...... ...... ...... -.:t' :E f7"! f7"! 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ¡:¡ õ3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0, 0 0 0 0, 0 0 0 0 0 0 0 0 0 0 0 ,8 .S< 0 0' 0' 0' 0' 0' 0' 0' 0' 0' 0' 0' 0' 0 0' 0' 0' 0' 1;; 0' 0 0 u V) 0 0 0 0 0 0 0 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 0 ~ ,§ V) ...... M M M M M M t<') M M M t<') t<') M M M M t<') 0 ...... ~' ~ p.. f7"! f7"! '- 0 rJ) ~ r- M r- 0 -.:t t<') ...... V) M r- ...... V) ...... ~ N 0\ ...... ...... 0 rJ) 00 N ...... -.:t 0 V) M 0\ -.:t 0\ ~ 0\ V) M V) ~ -.:t ...... 00 0\ 0 0 V) N V) 0, M M r- 0 "\. 00 ...... M, N 0 0\ 0\ r-, 00 -.:t, r- {j ~ õ3 M' 0\' N' M 0 d: 0 .,¡ M N' 00' t<') ~' -.:t' ...... 0' ...... 0\' ...... ~' +-' 00 N -.:t t<') -.:t 00 00 00 N ...... N 0 ...... 00 ...... -.:t N 00 ...... N ~ P- O ¡..... N "\. "\. 00 ...... 0 0 0 0, 0 0, -.:t, -.:t, r- 0 v), 'n. r- M 00 p.. .... v1 V) V) .,¡ -.:t' -.:t' -.:t' -.:t' -.:t .,¡ -.:t M M N' N' i rJ) <8 0 f7"! f7"! Õ '$. --- 0 ...... Z V) '-" +-' ¡::: ~ -ß N V) M 0 0\ 00 V) r- N ...... 0\ 0\ r- -.:t N ~ N 0\ ...... 0 .8 1;; 0\ 0\ M ~ N -.:t 00 V) ...... V) M N ...... ...... -.:t ~ t! ...... 00 ...... 1;; ¡:::¡ +-' -.:t 00 -.:t 0\, 0\ r- ~ 00, r- oo V) 00 00 r- t<') 0\ 00 -.:t 00 rJ) .~ "0 CO 0 00' 0\' d: V) 00' r-' -.D V) N' -.D 00' 0\' ~' r-' -.D 0' ~' -.:t' ~' 0' 0 ,S .... N r- -.:t ~ 0\ 0\ 00 ~ M 00 N ...... r- M N 0 ...... M -.:t ß 1;; 0 "0 :E N 0\, 00, ~, -.:t, r-, ~, 'n. -.:t, "\. ...... N 'n. r- N ...... ...... "3 B N' ...... N' N' V) õ3 u N õ3 f7"! f7"! .... rJ) 0 U +-' <5 ¡::: rJ) '" 0 "0 ... Ö ¡::: = ~ -.:t N 0 r- ...... ~ 00 -.:t M N N 00 -.:t ...... 0\ 0 0 0 0 ...... 0 0 E õ3 0\ M 00 00 r- 0 -.:t t<') M -.:t N ~ M N 0 0 0 0 0 00 rJ) p:¡ 0 M o^ 0 M, ~, o^ N V) 0 ~, 'n. -.:t M ~ 0 o^ 0, 0, 0\, OJ ~ .S< v1 O\^ r-^ 00' o^ ~^ d: ~' v)' o^ j¡ 0 I. M ...... ...... -.:t 0\ M V) V) V) V) .s 'S ¡:j V) -.:t 0\ ~ -.:t 0\ 0\ ...... 0\ N 0\ 00 M -.:t 00 -.:t 0 V) 0 00 0, "\. t<')^ ...... ~ N M 'n. V) r- oo, ...... "\. "\. N, M^ -.:t^ r- M ~ õ3 ¡::: 0" ï::: N N^ N^ N' N' 0\' .';:: 0 ~ p.. M M M t<') N N ¡::t:: M ~ 0 f7"! f7"! 1;; ~ u .... u rJ) +-' 'E 0 rJ) -g ~ ~ õ3 CO Ü 0 CIJ a = 0 V) ~ r- oo 0\ 0 ...... N t<') -.:t V) ~ r- oo 0\ 0 ...... N M -.:t V) :E ... u ~ M 0\ 0\ 0\ 0\ 0\ 0 0 0 0 0 0 0 0 0 0 ...... ...... ...... ...... ...... ..s rJ) 0 -. 0\ 0\ 0\ 0\ 0\ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ..c ~ >< Jj 0\ ~ ...... ...... ...... ...... N N N N N N N N N N N N N N N N --- Œ ~ ...... '-" 14 D.C .51 Co Co .! "" <II ~ o ... = '" 'C = = = 1 ::I '" .¡!¡ = ;;;¡ .... ::I = 1 .~ "" .ß ::I < 'C = = ~ ;.< = E-o 51 <II "" .s = > 'C < 51 = .:: <II :E = .... = =- .... .c <II Q 1 'C = ::I ¡.. D.C = 's.. Co .! t ~ o 'C = = -g "" s i = ~ ~ E-o i~ .i~ 1;¡ . j! ::I'C -¡ .¡!¡ > S 1.... '" D.C ~ .51 ~~ "0"3.... 4> = 0 .~ ~ ~ 0'8 < £;;;¡.... =....-5 <ÆO CI).... .5 ~ '" c....... . C. ~o:I"O .- í: Q U 0 > o §§§§O§ ~~~gg g ....."'\000'" 0 I ... .. ... .. C'lr--\O'" 0 C'I'" M {oI't .~ C\ 00 8 8 -.t C'I ~.oo..... C'lM c¡- \0. ~ -.t. . r-: r-- ~g~~~~~ .... \0. M. 00 r--. r--. 00 -gor--C\ "'.....C'I = '" M C'I u..<{oI't "3 :ël *- *- *- *- *- *- "¡;j 0:18"'.....\0\0\0 §*-~ .~-;r--:r--:r--: .'(;; 8 ~ ..... M M M LIJ <..... Õ\200r--0 ~õ88~8 -"3.... ó",'glÔ;i"" s"O-5~8v~M~ ~ §Or--·........¡,..;-IÔIÔ u.. M\Or--"'-.tr-- ..... {oI't '" 8~8¡;;$"'" ~~00""'8.....-.t:2 ~~~~V;")~~~ ..... ~..... 000 C\\OMC'loor-- "'C'lOO.....\OO ~O\f1'1""""t\O.....-I 1::0 \is r-: c; IÔ r-: -.t' ~ ~ ] ._ C'I r-- 00 '" C\ '" ~ ~ r¡ "¡;j o. 00. "l C'I. \0. -:. g::o:I~~bCS~~g~ ..... ¡... < > "l -.t. -.t. r--. C\. c\. ~ ('f').....-I"""'¡ "'"'" "'"'" -.tv-.t {oI't õ õ .¡:: I::'¡:: '(;; .g 1;;.~ Q o is '(;; .~ 0 ~~'õQ .~ ~ '§ æ .2 õ 0 ~ ...."O~.2 '3u ~ I:: 'C 0 '6. t> E-o~.gi ~] g:¡8.-g~~~ ..c; 0 ~ I:: I:: I:: t:"OI)=== o..E"00oo ~~..Euu~ o .;; ] ~ ~ ~ .q] q:¡ ~ ~ ~ Ug:¡~E-o¡"'E-o r-- \0 00 r-: ..... ..... 00 r-- (oI't .ß ° "3 "0 I:: = u.. CI) .5 c. c. 0:1 ;:: o > o "0 I:: 0:1 ~ is '3 o E-o *- 00 ..... ".; I:: .S "¡;j = -; > "3 '" '" o '" ..( o :ë 0:1 ~ ~ 09 .ß ° "3 "0 I:: = u.. CI) .5 c. c. .! ... o > o "0 I:: 0:1 .~ o .... o .S ~ 15 ..... '" "l ..... (oI't ~ '" = ~ ~ = .§ '" ] ..2 .... o CI) I:: .¡:¡ .c '" -g o g:¡ o = e ~ ~ ~ ] 0:1 (/) o £ o "0 = Õ .5 .ß ° "3 "0 I:: = u.. CI) .5 c. c. .! !) > o S '6. 0:1 U ... Æ .... o I:: '" o o "0 "0 I:: 0:1 . CI) .....c: '" ~ .q.5 .s g.~ 0:1 U c..... ",.~..c: c. e- I:: '" -Š"5~8.~1 .5 > LIJ = = § ..c: 0 .b (1.1...., .<:::"3~o"O'" ~ .... ~ '" I:: 0 ",0:10"00:10 .!:! ..§ ¡... '3 oJ £ ;::"'....0>23 8..00';¡2~ e-g~l::o:Ir;:: c.<III::0"3~ c .... = ~ .... og88..~~ .2 :0 ~ 0 .9 S "0"" Oc <II '" o O.~"O "0 ;E .c'C>co!-< Cl)o"O <11£ . .5 8 < ê 0 "0 ¡(o-ooO S Š ~·~.5.5 o ",'õ 0:1 '" Ë r¡ .~ '8 Ë ~ ~ £ ..c: =.s I:: OJ .... ¡... ::s .5 2 ~ .DrñO..c:-;.D "3~£gl::'O .- ::s ~ rIJ ......s_ C ].~~~ = ",-g"30:g~ o 8,..c: ~ <II..c: ~ ~ ~ ::! "3 .~ °.Do=~ 5 'U 8.! .~ .... .....co c.o 0 .£ .... -? 8 > .... <II 0 't; 0 0:1 C >gS(o..cg "00:11).......8 <II 5ø::o 0:1 0:1 'õ1.¡:¡_....80 .... 09 ~~~£ :3 U'J ._ § ~ U'J ~ Ëf'~ 8 ~ -g ......"E$: = os rIJ 0 ~ 0 ~ Go) .~ ~ ~ t:: '" £ '.g ~ '" 2 ~"3 0 .9 ~... ~t.:= C).~ Û 8· ï:::-5:g o .5 .5 ~ 'õ ~ £.... .... 0 .... <11"3,:::.5 '" o 51 .5 e t! 'C ~"O S"O 00 g C C C '" 090:108..'''' 'S .... 0 0 e ~ 0'<::: c"o ° <II ';; U .g.5 Ë·.g £-Š~'O]~ 5....t:1::t:.D . o.s '" = = ~ 'C .5 ;g u.. .: .g8~ö~ .2 = 0'- U () "O~..)::U'6.~>' 01)~08='<::: .D-gìS.£o~u ~.- 0 . 0'- 0 .- 0 Q) þ S ~ oS ~ ~ >.- ..... c.,.. S",oU.9C1)O "'0"00"'5.... S:e = -5 ~:!:i i .¡:: 0 ~ 0 = "0 .s.D",o9gg' > CI)"O CI) CI) ... "3 o .5 c 5 5 ","0 ..c:¡(o·· 8c ';::S.D.$2e<E o-;1.'íe",CI)CI) '" 0 .. '" <II e,5 e;g8'C§C.~ .a 0 e = .- 0 <II :.ac.og~~;:: e~-;¡;¡t:..c~ ~o>o.s~o LIJ ~ -g £.5 8 'õ ..: -5 "0 CI) C '£ ~ = '" <..!. Q) '" r¡ "0 = ] o '" "0 C '" 0"0 g:¡ I:: C 0 og:¡ "= c:: g¡ .s ~~ 0:.:= ëß ~ë o ::! 4> 0 £0 '" 0 o£ "0.... = 0 õ 0 .5 0 . c "3 ~ '8 .~ .~ 0 ¿:£ ~:€ ::..~ r Interest and Sinking Fund Budget Projection Estimated General Obligation Debt Service Requirements, Fiscal Year Ending 9-30-95 . . . . . . . . . . . . . . Interest and Sinking Fund, 9-30-94 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1994/95 Interest and Sinking Fund Tax Levy @ 98% Collection . . , . . . . . . . . . . . , . Estimated Interest Income ...........................,.....,..... Budgeted Transfers ..,...,............,....,.................. $ 2,103,386 4,115,946 100,000 571.831 Estimated Balance, 9-30-95 .,...........................,....,.........,..... Computation of Self-Supporting Debt Waterworks and Sewer Svstem Net Revenues available from Waterworks and Sewer System, Fiscal Year 9-30-94 . . . . . . . . . . . . . . . . . Less: Revenue Bond Requirements, 1995 Fiscal Year. . . . . . . . . . . . . . . . . . , . . . . . . , . . . . . . . . Balance Available for other purposes .............................,.............. System General Obligation Bond Requirements, 1995 Fiscal Year . . . . . . . . . . . . . . . . . . . . . . . . . . . Balance ......,...............,...........,............,..."......... Percentage of System General Obligation Bonds Self-Supporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . Golf Course Center Net Revenue available from Golf Course Center, Fiscal Year 9-30-95 . . . . . . . . . . . . . . . . . . . . . . . . Golf Course Center General Obligation Requirements, 1995 Fiscal Year . . . . . . . . . . . . . , . . . . . . . . . Balance .............,..............................................,. Percentage of Golf Course Center General Obligation Bonds Self-Supporting . . . . . . . . . . . . . . . . . . . . Authorized General Obligation Bonds Purpose Drainage Improvements Street Improvements Drainage Improvements Public Safety Facilities Date Authorized 9-10-85 9-27-94 9-27-94 9-27-94 Amount Authorized $ 16,870,000 20,000,000 1,865,000 1.675.000 $ 40,410,000 Amount Heretofore Issued $ 12,870,000 -0- -0- -0- $ 12,870,000 Amount Being Issued $ 1,100,000 3,225,000 -0- 1.675.000 $ 6,000,000 Unissued Balance $ 2,900,000 16,775,000 1,865,000 -0- $ 21,540,000 Anticipated Issuance of General Obligation Debt The City does not anticipate the issuance of additional general obligation debt within the next 12-month period. Funded Debt Limitation ....,.- $4,835,671 6.891.163 $2,055,492 $3,807,508 2.080.585 $1,726,923 27.500 $1,699,423 100.00% $ 514,862 324.820 $ 190,042 100.00% No direct funded debt limitation is imposed on the City under current State law or the City's Home Rule Charter. Article XI, Section 5 of the Texas Constitution is applicable to the City, and limits its maximum ad valorem tax rate to $2.50 per $100 assessed valuation for all City purposes. The Home Rule Charter of the City restricts the maximum tax rate to $1.50 per $100 Taxable Assessed Valuation for all City purposes. 16 Pension Fund The City provides pension benefits for all of its full-time employees (except firefighters) through a nontraditional, joint contributory, defined contribution plan in the state-wide Texas Municipal Retirement System (TMRS) an agent multiple-employer public employee retirement system. Plan members can retire at ages 60 and above with 10 or more years of service or with 25 or more years of service regardless of age, The plan also provides death and disability benefits. A member is vested after 10 years, but must leave accumulated contributions in the plan, The contribution rate for the employees is 7%, and the City matching percent is currently 2 to 1. Under the state law governing TMRS, the City contribution rate is annually determined by the actuary. Currently, the unfunded actuarial liability is being amortized over the 25-year period which began January, 1994. The City's total payroll in fiscal year 1994 was $12,641,287, and the City's contributions were based on a payroll of $11,037,223. Both the City and the covered employees made the required contributions, amounting to $1,260,399 (9.80% of covered payroll for the months in calendar year 1993, 8.04% normal cost plus 1.76% to amortize the unfunded actuarial liability , and 10.20% for the months in calendar year 1994, 8.34% normal cost plus 1.86% to amortize the unfunded actuarial liability) for the City and $872,671 (7%) for the employees. The City adopted changes in the plan since the previous actuarial valuation, which had the effect of increasing the City's contribution rate for 1994 by 0.05% of payroll. Pension Benefit Obligation Annuitants currently receiving benefits Terminated employees Current employees: Accumulated employee contributions including allocated invested earnings Employer-financed vested Employer-fmanced nonvested Total $ 789,351 1,194,049 7,556,930 11,585,459 3.196.198 $ 24.321.987 Net assets available for benefits, at book value $ 17,588,764 Unfunded pension benefit obligation $ 6,733,223 The book value of assets is amortized cost for bonds and original cost for short-term securities and stocks. The actuarial assumptions used to compute the actuarially determined City contribution rate are the same as those used to compute the pension benefit obligation, The numbers above reflect the adoption of changes in the plan since the previous actuarial valuation, which had the effect of increasing the pension benefit obligation by $102,071. See "Appendix B - Pension Plans" for a complete description of the Pension Fund, Self Insurance The Self-Insurance (Internal Service) Fund incurred an accumulated deficit of $166,070 at September 30, 1994 due to unexpected major medical claims. It is management's intent to cure this deficit through increased changes to the user funds and possible increasing employee dependent coverage rates. Golf Course Management The City has a contract with a managemem company for operations of the city-owned public golf course. The contract expires January, 1998; however, the City has the option of canceling the contract anytime after January, 1996. In addition to monthly management fees, a contingent management fee is owed if the golf course revenues exceed a certain amount that varies from year to year. The accumulated deficit of $1,162,837 reported by the Golf Course Fund is primarily a result of replanting expenses ($322,769 in 1990), loss on in-substance defeasance of golf course obligations ($217,646 in 1991) and interest expense in excess of operating income for 1990, 1991, 1992, and 1994. In addition, the accumulated deficit is partially a result of depreciation not being recovered. The total depreciation to date is $986,182. This makes up the largest portion of the accumulated deficit. It is management's intent to cure this accumulated deficit through increased operating income in future periods. 17 Lease-Purchases The City has entered into lease-purchase arrangements for a mobile data tenninal, golf course lawn mowers, an automatic fingerprint identification system and various equipment purchases. The lease/Durchases have been declared funded debts of the Citv and are included in the Debt Service Fund tax It>vv. Payments for the various leases are as follows: Fiscal Year Principal Interest Total 1994-1995 $ 85,094 $ 34,935 $ 120,029 1995-1996 54,332 ' 30,182 84,514 1996-1997 58,080 26,434 84,514 1997-1998 62,087 22,427 84,514 1998-1999 66,371 18,143 84,514 1999-2000 70,950 13,564 84,514 2000-2001 75,845 8,669 84,514 2001-2002 81,077 3,437 84,514 2002-2003 7.002 39 7.041 $ 560,838 $ 157,830 $ 718.668 18 FINANCIAL INFORMATION General Fund Revenues and Expenditure History For Fiscal Year Ended September 30. Revenues 1994 1993 1992 1991 1990 Taxes, Penalties & Interest $ 12,720,580 $ 11,376,696 $ 10,871,599 $ 10,223,923 $ 9,756,367 Licenses and Permits 887,968 989,404 731,539 641,699 721,583 Intergovernmental -0- 19,536 23,139 -0- 128,788 Charges for Services 2,428,672 2,090,580 1,882,492 1,742,173 1,408,615 Interest Income 166,853 186,458 198,877 331 ,562 474,985 Fines and Forfeitures 775,510 617,867 534,405 365,636 368,744 Miscellaneous 166.558 244.180 137.358 159.799 67 .570 Total Revenues $ 17.146.141 $ 15.474.721 $ 14.379.409 $ 13.464.792 $ 12.926.652 Expenditures General Government $ 4,288,662 $ 4,085,564 $ 3,573,394 $ 3,673,539 $ 3,199,379 Public Safety 8,390,486 7,754,569 7,438,826 7,238,252 6,660,842 Public Works 1,623,534 1,466,640 1,385,243 1,368,737 1 ,291 ,599 Culture and Recreation 2.044.490 1.910.659 1.714.542 1.620.440 1.422.490 Total Expenditures $16.347.172 $ 15.217.432 $ 14.112.005 $ 13.900.968 $ 12.574.310 Excess (deficiency) of Revenues over Expenditures $ 798,969 $ 257,289 $ 267,404 $ (436,176) $ 352,342 Net Transfers In (Out) (986,405) 21,627 83,283 177,620 80,068 Fund Balance - October 1 3,612,219 2,781,035 2,430,348 2,688,904 2,256,494 Adjustments from Prior Year (1) -0- 552.268 -0- -0- -0- Fund Balance - September 30 $ 3.424.783 $ 3.612.219 $ 2.781.035 $ 2.430.348 $ 2.688.904 (1) The September 30, 1992 General Fund balance was increased for a correction in the accrual for sales tax revenue. Municipal Sales Tax History The City has adopted the Municipal Sales and Use Tax Act, V ATCS, Tax Code, Chapter 321, which grants the City the power to impose and levy a 1 % Local Sales and Use Tax within the City; the proceeds are credited to the General Fund and are not pledged to the payment of any indebtedness of the City. Collections and enforcements are effected through the offices of the Comptroller of Public Accounts, State of Texas, who remits the proceeds of the tax, after deduction of a 2 % service fee, to the City monthly. Revenue from this source, for the years shown, has been: Fiscal Year Ended 9-30 1990 1991 1992 1993 1994 1995(2) Per Capita (1) $189.99 90.20 94.50 103.29 115.83 119.79 % of Ad Valorem Tax Levy 55.81 % 57.83% 58.40% 65.96 % 70.51 % 70,09% Equivalent of Ad Valorem Tax Rate $0.2817 0.2920 0.3058 0.3453 0.4019 0.3995 Total Collected $4,130,101 4,208,330 4,503,122 4,988,925 5,748,869 6,033,961 (1) Based on estimated population for all years. (2) Projected, based on Fiscal Year 1995 Budget. 19 Financial Administration The fmancial administration of the City is vested in the Department of Finance. The Department of Finance operates under the direction of the Director of Finance, who is appointed by the City Manager. Required activities of the Department of Finance are control, custody and disbursement of City funds and assessment and collection of taxes. Other activities of the department include data processing, utility billing and collections, annual budget preparation and interim and annual financial reports. Financial Policies Basis of Accounting, . . The City's accounting records of the governmental fund revenues and expenditures are recognized on the modified accrual basis. Revenues are recognized in the accounting period in which they are available and measurable. Expenditures are recognized in the accounting period in which the fund liability occurred, if measurable, except for unmatured interest on generallong-tenn debt and on special assessment indebtedness secured by interest-bearing special assessment levies, longevity and certain other employees' benefits are recognized when due. Proprietary Fund revenues and expenses are recognized on the accrual basis. Revenues are recognized in the accounting period in which they are earned and become measurable. Expenses are recognized in the accounting period incurred. Fiduciary Fund revenues and expenses or expenditures are recognized on the modified accrual basis. Transfers are recognized in the accounting period in which the interfund receivable and payable arise (see "Excerpts from The City of North Richland Hills, Texas Annual Financial Report for the Year Ended September 30, 1993"). General Fund Balance. . . The City's policy is to maintain surplus and unencumbered funds equal to 12% to 15% of the next fiscal year's operating budget. Debt Service Fund Balance. . . The City's policy is to maintain surplus funds equal to a minimum of three (3) months of debt service in the Debt Service Fund. City policy is to pay "first dollar" tax collections into the Debt Service Fund until the levy for debt service has been collected. The City budgets on a 97.5% collections ratio and the 2.5% non-collectible factor is accounted for in the General Fund, Use of Bond Proceeds, Grants, etc. . . . The City's policy is to use bond proceeds, grants, revenue sharing or other non-recurring revenues for capital expenditures only, Such revenues are never to be used to fund City operations. Budgetary Procedures . . , The City Charter establishes the fiscal year as the twelve-month period beginning October 1. The departments submit to the City Manager a budget of estimated expenditures for the ensuing fiscal year by the middle of March, The City Manager subsequently submits a budget of estimated expenditures and revenues to the City Council by August 15. The City Council shall hold a public hearing on the budget after giving at least 10 days notice of the hearing in the official newspaper of the City, The Council shall then make any changes in the budget as it deems advisable and shall adopt a budget prior to October 1. If the Council fails to adopt a budget then the budget proposed by the City Manager shall deem to have been adopted. During the fiscal year, strict budgetary control is maintained by various methods, including the review of departmental appropriation balances with purchase requisitions prior to their release to vendors. Departmental appropriations that have not been expended lapse at the end of the fiscal year. Therefore, funds that were budgeted and not used by the departments during the fiscal year are not available for their use unless appropriated in the ensuing fiscal year's budget. Fund Investments. . . The City's investment policy parallels state law which governs investment of public funds. The City currently utilizes the State of Texas Investment Pool for the bulk of its investments. The Pool investments are restricted to direct obligations of the U.S. Government and its agencies. 20 INVESTMENTS The City invests its investible funds in investments authorized by Texas law in accordance with investment policies approved by the City Council of the City. Both state law and the City's investment policies are subject to change. Legal Investments. . . Under current Texas law, the City is authorized to invest in (1) obligations of the United States or its instrumentalities, (2) direct obligations of the State of Texas or its agencies, (3) collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the United States, (4) other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the State of Texas or the United States or its instrumentalities, (5) obligations of states, agencies, counties, cities, and other political subdivisions of any state that are rated A or higher by a nationally recognized investment rating agency, (6) certificates of deposit that are guaranteed or insured by the Federal Deposit Insurance Corporation or are secured as to principal by obligations described in the preceding clauses or in any other manner and amount provided by law for City deposits, (7) fully collateralized repurchase agreements that have a defmed tennination date, are fully secured by obligations described in clause (1), and are placed through primary government securities dealer or a bank domiciled in the State of Texas, (8) a bankers' acceptances with the remaining tenn of 270 days or less, if the short-tenn obligations of the accepting bank or its parent are rated at least A-lor P-l or the equivalent by at least one nationally recognized credit rating agency, (9) commercial paper that is rated at least A-lor P-l or the equivalent by either (a) two nationally recognized credit rating agencies or (b) one nationally recognized credit rating agency if the paper is fully secured by an irrevocable letter of credit issued by a U ,5, or state bank, (10) no-load money market mutual funds registered with the Securities and Exchange Commission that have a dollar weighted average portfolio maturity of 90 days or less, and include in their investment objectives the maintenance of a stable net asset value of $1 for each share, (11) bonds issued, assumed, or guaranteed by the State of Israel, and (12) a qualified common trust fund or comparable investment device that is owned or administered by a Texas-domiciled bank and consists exclusively of obligations described above. The City may invest in such obligations directly or through government investment pools that invest solely in such obligations. Investment Policies. . . Under Texas law, the City is required to invest its funds under written investment policies that primarily emphasize safety of principal and liquidity and that address investment diversification, yield, maturity, and the quality and capability of investment management, and all City funds must be invested in investments that protect principal, are consistent with the operating requirements of the City, and yield the highest possible rate of return. Under Texas law, City investments must be made "with judgement and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived." No person may invest City funds without express written authority from the City Council or chief executive officer of the City. The investments shall be consistent with state and local law and shall be made in accord with the following objectives: · Security of investments and City funds is the primary objective; · Preservation of capital and protection of principal; · Maintenance of sufficient liquidity to meet operating needs; · Maximization of return of the portfolio; · Diversification of investments to avoid unreasonable or avoidable risks. It is the policy of the City to purchase only obligations of the United States Government and its agencies, fully collateralized direct repurchase agreements secured by obligations of the U.S. Government and its agencies, and certificates of deposit in fmancial institutions meeting the City's standards for creditworthiness. Market risk shall be minimized by diversification of investment types. The following limits, by instrument, are established for the City's total portfolio: · · · · · · Repurchase Agreements ....,............................................ Certificates of Deposit ,.....................,........................... U.S. Treasury Notes/Bond/Bills ............................................. U.S. Agencies ........................,............................... Commercial Paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . Prime Domestic Banker's Acceptances ......................................... 40% 40% 100% 50% 10% 10% To allow efficient and effective placement of proceeds from bond sales, the limit on repurchase agreements may be exceeded for a maximum of five days following the receipt of bond proceeds. 21 Current Investments. . . As of 3-15-95, the City's investible funds were invested in the folIowing categories of investments, and the average remaining term of such investments was _ [months/years): Tyve of Investment Security Discount Notes T-Bills Certificate of Deposit TexPool Maturity Date 4-3-95 - 6-8-95 (I) 5-4-95 3-28-95 7.94 Days (2) Maturity Value $ 3,025,000 1,000,000 99,000 29.521.800 $33,645,800 % of Portfolio 8.99% 2.97% 0.29% 87,75% 100.00% (1) Shows maturity date range for three Government Agency Notes. (2) Weighted average maturity. As of such date, the market value of such investments (as determined by the City by reference to published quotations, dealer bids, and comparable information) was approximately _% of their book value, No funds of the City are invested in derivative securities, Le., securities whose rate of return is detennined by reference to some other instrument, index, or commodity. 22 OTHER INFORMATION Ratings The presently outstanding tax supported debt of the City is rated "A" by Moody's and "A +" by S&P. The City also has eight issues outstanding which are rated "Aaa" by Moody's and "AAA" by S&P through insurance by various commercial insurance companies, Applications for contract ratings on this issue have been made to Moody's and S&P. An explanation of the significance of such ratings may be obtained from the company furnishing the rating. The ratings reflect only the respective views of such organizations and the City makes no representation as to the appropriateness of the ratings. There is no assurance that such ratings will continue for any given period of time or that they will not be revised downward or withdrawn entirely by either or both of such rating companies, if in the judgment of either or both companies, circumstances so warrant. Any such downward revision or withdrawal of such ratings, or either of them, may have an adverse effect on the market price of the Bonds. Tax Exemption The delivery of the Bonds is subject to the opinion of Bond Counsel to the effect that interest on the Bonds for federal income tax purposes (1) will be excludable from gross income, as defmed in section 61 of the Internal Revenue Code of 1986, as amended to the date of such opinion (the "Code"), pursuant to section 103 of the Code and existing regulations, published rulings, and court decisions, and (2) will not be included in computing the alternative minimum taxable income of the owners thereof who are individuals or, except as hereinafter described, corporations. The statute, regulations, rulings, and court decisions on which such opinion is based are subject to change. Interest on all tax-exempt obligations, including the Bonds, owned by a corporation will be included in such corporation's adjusted current earnings for tax years beginning after 1989, for purposes of calculating the alternative minimum taxable income of such corporation, other than an S corporation, a qualified mutual fund, a real estate investment trust (REIT), or a real estate mortgage investment conduit (REMIC). A corporation's alternative minimum taxable income is the basis on which the alternative minimum tax imposed by the Tax Reform Act of 1986 and the environmental tax imposed by the Superfund Revenue Act of 1986 will be computed. In rendering the foregoing opinions, Bond Counsel will rely upon representations and certifications of the City made in a certificate dated the date of delivery of the Bonds pertaining to the use, expenditure, and investment of the proceeds ofthe Bonds and will assume continuing compliance by the City with the provisions of the Ordinance subsequent to the issuance of the Bonds. The Ordinance contains covenants by the City with respect to, among other matters, the use of the proceeds of the Bonds and the facilities financed therewith by persons other than state or local governmental units, the manner in which the proceeds of the Bonds are to be invested, the periodic calculation and payment to the United States Treasury of arbitrage "profits" from the investment of the proceeds, and the reporting of certain infonnation to the United States Treasury. Failure to comply with any of these covenants would cause interest on the Bonds to be includable in the gross income of the owners thereof from date of the issuance of the Bonds. Except as described above, Bond Counsel expresses no other opinion with respect to any other federal, state or local tax consequences under present law, or proposed legislation, resulting from the receipt or accrual of interest on, or the acquisition or disposition of, the Bonds, Prospective purchasers of the Bonds should be aware that the ownership of tax-exempt obligations such as the Bonds may result in collateral federal tax consequences to, among others, financial institutions, life insurance companies, property and casualty insurance companies, certain foreign corporations doing business in the United States, S corporations with subchapter C earnings and profits, individual recipients of Social Security or Railroad Retirement benefits, and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry, or who have paid or incurred certain expenses allocable to, tax-exempt obligations. Prospective purchasers should consult their own tax advisors as to the applicability of these consequences to their particular circumstances. Qualified Tax-Exempt Obligations for Financial Institutions Section 265 of the Code provides, in general, that interest expense to acquire or carry tax-exempt obligations is not deductible from the gross income of the owner of such obligations. In addition, section 265 of the Code completely disallows any deduction for interest expense which is incurred by "fmancial institutions" described in such section and is allocable, as computed in such section, to tax-exempt interest on obligations acquired after August 7, 1986. Section 265(b) of the Code provides an exception to this rule for interest expense allocable to tax-exempt obligations (other than private activity bonds) which are designated by an issuer, such as the City, as "qualified tax-exempt obligations." An issuer may designate obligations as "qualified tax-exempt obligations" only if the amount of the issue of which they are a part, when added to the amount of all other tax-exempt obligations (other than private activity bonds) issued or reasonably anticipated to be issued by the issuer during the same calendar year, does not exceed $10,000,000. 23 The City has designated the Bonds as "qualified tax-exempt obligations" and certified its expectation that the above-described $10,000,000 ceiling will not be exceeded. Accordingly, it is anticipated that [mancial institutions which purchase the Bonds will not be subject to the one-hundred percent (100%) disallowance of interest expense allocable to interest on the Bonds under Section 265(b) of the Code. However, twenty percent (20%) of the interest expense incurred by a financial institution which is allocable to the interest on the Bonds will not be deductible pursuant to section 291 of the Code. Tax Accounting Treatment or Discount and Premium on Certain Bonds The initial public offering price of certain Bonds (the "Discount Bonds") may be less than the amount payable on such Bonds at maturity. An amount equal to the difference between the initial public offering price of a Discount Bond (assuming that a ~ubstantial amount of the Discount Bonds of that maturity are sold to the public at such price) and the amount payable at maturity constitutes original issue discount to the initial purchaser of such Discount Bond. A portion of such original issue discount allocable to the holding period of such Discount Bond by the initial purchaser will, upon the disposition of such Discount Bond (including by reason of its payment at maturity), be treated as interest excludable from gross income, rather than as taxable gain, for federal income tax purposes, on the same tenns and conditions as those for other interest on the Bonds described above under "Tax Exemption." Such interest is considered to be accrued actuarially in accordance with the constant interest method over the life of a Discount Bond, taking into account the semiannual compounding of accrued interest, at the yield to maturity on such Discount Bond and generally will be allocated to an original purchaser in a different amount from the amount of the payment denominated as interest actually received by the original purchaser during the tax year. However, such interest may be required to be taken into account in detennining the alternative minimum taxable income of a corporation, for purposes of calculating a corporation's alternative minimum tax and the environmental tax imposed by Sections 55 and 59A, respectively, of the Code, and the amount of the branch profits tax applicable to certain foreign corporations doing business in the United States, even though there will not be a corresponding cash payment. In addition, the accrual of such interest may result in certain other collateral federal income tax consequences to, among others, financial institutions, life insurance companies, property and casualty insurance companies, S corporations with "subchapter C" earnings and profits, individual recipients of Social Security or Railroad Retirement benefits, and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry, or who have paid or incurred certain expenses allocable to, tax-exempt obligations. Moreover, in the event of the redemption, sale or other taxable disposition of a Discount Bond by the initial owner prior to maturity, the amount realized by such owner in excess of the basis of such Discount Bond in the hands of such owner (adjusted upward by the portion of the original issue discount allocable to the period for which such Discount Bond was held) is includable in gross income. Owners of Discount Bonds should consult with their own tax advisors with respect to the detennination of accrued original issue discount on Discount Bonds for federal income tax purposes and with respect to the state and local tax consequences of owning and disposing of Discount Bonds. It is possible that, under applicable provisions governing determination of state and local income taxes, accrued interest on Discount Bonds may be deemed to be received in the year of accrual even though there will not be a corresponding cash payment. The initial public offering price of certain Bonds (the "Premium Bonds") may be greater than the amount payable on such Bonds at maturity. An amount equal to the difference between the initial public offering price of a Premium Bond (assuming that a substantial amount of the Premium Bonds of that maturity are sold to the public at such price) and the amount payable at maturity constitutes premium to the initial purchaser of such Premium Bonds. The basis for federal income tax purposes of a Premium Bond in the hands of such initial purchaser must be reduced each year by the amortizable bond premium, although no federal income tax deduction is allowed as a result of such reduction in basis for amortizable bond premium. Such reduction in basis will increase the amount of any gain (or decrease the amount of any loss) to be recognized for federal income tax purposes upon a sale or other taxable disposition of a Premium Bond. The amount of premium which is amortizable each year by an initial purchaser is detennined by using such purchaser's yield to maturity. Purchasers of the Premium Bonds should consult with their own tax advisors with respect to the determination of amortizable bond premium on Premium Bonds for federal income tax purposes and with respect to the state and local tax consequences of owning and disposing of Premium Bonds, Litigation It is the opinion of the City Attorney and City Staff that there is no pending litigation against the City that would have a material adverse financial impact upon the City or its operations. 24 Registration and Qualification of Bonds for Sale The sale of the Bonds has not been registered under the Federal Securities Act of 1933, as amended, in reliance upon the exemption provided thereunder by Section 3(a)(2); and the Bonds have not been qualified under the Securities Act of Texas in reliance upon various exemptions contained therein; nor have the Bonds been qualified under the securities acts of any jurisdiction. The City assumes no responsibility for qualification of the Bonds under the securities laws of any jurisdiction in which the Bonds may be sold, assigned, pledged, hypothecated or otherwise transferred. This disclaimer of responsibility for qualification for sale or other disposition of the Bonds shall not be construed as an interpretation of any kind with regard to the availability of any exemption from securities registration provisions. Legal Investments and Eligibility to Secure Public Funds in Texas Section 9 of the Bond Procedures Act provides that the Bonds "shall constitute negotiable instruments, and are investment securities governed by Chapter 8, Texas Unifonn Commercial Code, notwithstanding any provisions of law or court decision to the contrary, and are legal and authorized investments for banks, savings banks, trust companies, building and loan associations, savings and loan associations, insurance companies, fiduciaries, and trustees, and for the sinking fund of cities, towns, villages, school districts, and other political subdivisions or public agencies of the State of Texas". The Bonds are eligible to secure deposits of any public funds of the state, its agencies and political subdivisions, and are legal security for those deposits to the extent of their market value. For agencies and political subdivisions in Texas which have adopted investment policies and guidelines in accordance with the Public Punds Investment Act (V.T,C.A., Government Code, Chapter 2256), the Bonds may have to be assigned a rating of "A" or its equivalent as to investment quality by a national rating agency before such obligations are eligible investments for sinking funds and other public funds. No review by the City has been made of the laws in other states to detennine whether the Bonds are legal investments for various institutions in those states. Legal Matters The City will furnish a complete transcript of proceedings had incident to the authorization and issuance of the Bonds, including the unqualified approving legal opinion of the Attorney General of Texas approving the Initial Bonds and to the effect that the Bonds are valid and legally binding obligations of the City, and based upon examination of such transcript of proceedings, the approving legal opinion of Bond Counsel, to like effect and to the effect that the interest on the Bonds will be excludable from gross income for federal income tax purposes under Section 103(a) of the Code, subject to the matters described under "Tax Exemption" herein, including the alternative minimum tax on corporations. The customary closing papers, including a certificate to the effect that no litigation of any nature has been filed or is then pending to restrain the issuance and delivery of the Bonds, or which would affect the provision made for their payment or security, or in any manner questioning the validity of said Bonds will also be furnished. Bond Counsel was not requested to participate, and did not take part, in the preparation of the Notice of Sale and Bidding Instructions, the Official Bid Ponn and the Official Statement, and such finn has not assumed any responsibility with respect thereto or undertaken independently to verify any of the infonnation contained therein, except that, in its capacity as Bond Counsel, such finn has reviewed the infonnation describing the Bonds in the Official Statement to verify that such description confonns to the provisions ofthe Ordinance. The legal fee to be paid Bond Counsel for services rendered in connection with the issuance of the Bonds is contingent on the sale and delivery of the Bonds. The legal opinion will accompany the Bonds deposited with DTC or will be printed on the Bonds in the event of the discontinuance of the Book-Entry- Only System. Authenticity of Financial Data and Other Information The financial data and other infonnation contained herein have been obtained from the City's records, audited fmancial statements and other sources which are believed to be reliable. There is no guarantee that any of the assumptions or estimates contained herein will be realized. All of the summaries of the statutes, documents and resolutions contained in this Official Statement are made subject to all of the provisions of such statutes, documents and resolutions. These summaries do not purport to be complete statements of such provisions and reference is made to such documents for further infonnation. Reference is made to original documents in all respects. Financial Advisor First Southwest Company is employed as Pinancial Advisor to the City in connection with the issuance of the Bonds. The Pinancial Advisor's fee for services rendered with respect to the sale of the Bonds is contingent upon the issuance and delivery of the Bonds. Pirst Southwest Company may submit a bid for the Bonds, either independently or as a member of a syndicate organized to submit a bid for the Bonds. Pirst Southwest Company, in its capacity as Financial Advisor, has relied on the opinion of Bond Counsel and has not verified and does not assume any responsibility for the infonnation, covenants and representations contained in any of the legal documents with respect to the federal income tax status of the Bonds, or the possible impact of any present, pending or future actions taken by any legislative or judicial bodies. 25 Certification of the Official Statement At the time of payment for and delivery of the Bonds, the Purchaser will be furnished a certificate, executed by proper officers, acting in their official capacity, to the effect that to the best of their knowledge and belief: (a) the descriptions and statements of or pertaining to the City contained in its Official Statement, and any addenda, supplement or amendment thereto, on the date of such Official Statement, on the date of sale of said Bonds and the acceptance of the best bid therefor, and on the date of the delivery, were and are true and correct in all material respects; (b) insofar as the City and its affairs, including its financial affairs, are concerned, such Official Statement did not and does not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (c) insofar as the descriptions and statements, including financial data, of or pertaining to entities, other than the City, and their activities contained in such Official Statement are concerned, such statements and data have been obtained from sources which the City believes to be reliable and the City has no reason to believe that they are untrue in any material respect; and (d) there has been no material adverse change in the fmancial condition of the City since the date of the last audited fmancial statements of the City. The Ordinance authorizing the issuance of the Bonds will also approve the fonn and content of this Official Statement, and any addenda, supplement or amendment thereto, and authorize its further use in the reoffering of the Bonds by the Purchaser. TOMMY BROWN Mayor City of North Richland Hills, Texas ATTEST: JEANETTE REWIS‹City Secretary 26 APPENDIX A GENERAL INFORMATION REGARDING THE CITY THIS PAGE LEFT BLANK INTENTIONALLY Location and History The City of North Richland Hills is located in northeast Tarrant County, encompassing approximately 18.29 square miles with 428 employees. The City is approximately 10 miles northeast of downtown Fort Worth and 25 miles northwest of downtown Dallas. It is a part of the mid-cities area of North Central Texas (the "Metroplex"), which includes the Cities of Dallas and Fort Worth with a total population exceeding 4 million. The City was incorporated in 1953 under the general laws of the State of Texas and the current charter was approved by the voters in 1964 and last amended in August of 1992, The City is a home rule city and operates under the Council/Manager fonn of government. The Council is composed of a mayor and seven councilmembers elected at large. All City residents vote for all seven places. The members are elected for two-year staggered tenns and elections are held annually in May. Policy-making and oversight functions are the responsibility of, and are vested in, the City Council. The City Council is required by the charter to appoint a City Manager to serve as the chief administrative and executive officer of the City. The duties of the City Manager include the appointment of City department heads and the daily conduct of City affairs. Population The City has grown steadily since the mid-1950's when it was a small bedroom community. The population of the City has increased approximately 50% since 1982. Population history is as follows: Year Population Source Year Population Source 1953 500 (1) 1986 40,650 (3) 1960 8,662 (2) 1987 42,050 (3) 1970 16,514 (2) 1988 44,900 (3) 1980 30,592 (2) 1989 45,700 (3) 1981 31,250 (3) 1990 45,895 (4) 1982 31,850 (3) 1991 46,655 (3) 1983 33,100 (3) 1992 47,650 (3) 1984 35,550 (3) 1993 48,300 (3) 1985 36,500 (3) 1994 49,631 (1) 1995 50,386 (1) (1) City Staff Estimate. (2) U.S. Census Bureau. (3) North Central Texas Council of Governments. (4) Revised U.S. Census Bureau total. (5) City Planning Department estimate. The City has established itself as an innovative leader among Texas municipalities. A steadily growing economy, complete municipal services and prime location deliver the high quality of living expected by the residential and business communities. With an estimated current population of 50,000, more than triple the population of 1970. North Richland Hills is the third largest city in Tarrant County. The citizens of the City, with a median age of 31.5, enjoy the small town atmosphere while sharing the many amenities of the Fort WorthlDallas Metroplex. Economics The City's location in the middle of the Fort Worth/Dallas Metroplex provides access to approximately 4 million people - the sixth largest market in the United States. North Richland Hills' proximity to the D/FW International Airport allows local businesses to capitalize on trade opportunities gained through the North American Free Trade Agreement (NAFTA). The approximate economic base of the City at this time is manufacturing (23%), wholesale and retail trade (25%), professional and related services (15%), and various other services (37%). The City's labor distribution by type includes individuals skilled in technical, sales and administrative functions (39%), management (26%), crafts (15%), operators and fabrications (13%), and services (7%), A-I Recent indicators illustrate the City's healthy economic environment: The local unemployment rate has remained more than 2 points below state figures (2.15) and almost 2 points below national levels (1.99) since January 1993, And over the same period, North Richland Hills has stayed almost 1 1/2 points below the Fort Worth/Arlington Metropolitan Statistical Area unemployment rate (1.46). The City has enjoyed annual increases in sales tax revenue since the early 1980's and is on pace to exceed fiscal year 1994-95 totals by over 18% (18.58% through January). The City recorded construction of more than 470,000 square feet of new retail, office, restaurant, and manufacturing space in 1994, valued at $15.8 million. North Richland Hills also saw absorption and/or renovation of more than 440,000 square feet of existing commercial space with an estimated value of $8.4 million in 1994. 1994 tax appraisals show a 30.75 % increase in new construction values from fiscal year 1993 ($47,757,227) to fiscal year 1994 ($62,442,127). And 1994 appraisals for all existing construction yield an 5,08% increase in net taxable values. Other factors contributing to the City's prosperity include: 1) A location near the center of nine (9) of the ten largest business centers in Tarrant County. 2) Close proximity to new or expanding employers like Motorola's Global Paging Division (5 miles), Alliance Airport (9 miles), Burlingon Northern's Corporate Headquarters (8 miles), Bell Helicopter (4 miles), Siecor Corporation (8 miles), AST Research (8 miles), and Haggar Manufacturing (6 miles). 3) The growth of existing manufacturers such as Tecnol Medical Products, H&M Food Systems, Sealy Mattress Manufacturing, Bates Container, and Arabesque Fragrance Manufacturing. 4) Tecnol Medical Products, the City's largest employer, acquired two competitors and purchased 62 acres surrounding its 12-acre campus in 1993. Its management team also contracted with an architectural finn to prepare Tecnol 2000, a five-year plan for expansion of the company's North Richland Hills headquarters. With approximately 30% of the City remaining undeveloped, North Richland Hills offers numerous opportunities for commercial, industrial and residential growth. Residential platting activity continues to be strong, especially in the northern areas of the City and near the Iron Horse Golf Course. One of two courses with adjacent residential lots, Iron Horse is achieving critical and financial success - having attracted more than 47,000 rounds of golf in 1994. Municipal Services With active involvement by the Mayor, a seven member City Council and 14 citizen boards, commissions and committees, the City is assured proper and effective representation. Low crime statistics are maintained by a police force consisting of 67 police officers. The City has four professionally staffed fire stations. Fully equipped to handle most emergencies, the City utilizes its own mobile intensive care ambulance system, staffed with highly trained paramedics. Quality of Life Amenities are plentiful in the City. Three privately owned and fully operational hospitals offer City residents excellent health care. The City has a full service central library housing 90,000 volumes with a circulation of 365,000. With over 379 acres of park land, the City offers such facilities as playgrounds, picnic areas, recreation center, a championship golf course, lighted tennis courts, football fields, softball and baseball fields, basketball courts, volleyball courts and two senior citizen centers. Families in the City are served by churches throughout the area representing all denominations. A-2 t I i Education Education for the citizens ofthe City is provided by the Birdville Independent School District (the "District") which encompasses an area of approximately 40 square miles. The District conducts programs for K-12 and is fully accredited by the Southern Association of Colleges and the Texas Education Agency and operates on a middle school structure, i.e. Pre-kindergarten-5, 6-8, 9-12. Physical facilities include: 2 high schools 1 alternative high school 7 junior high schools 20 elementary schools Coliseum Administration Building Stadium Transportation Complex Computer Service Center Annex/materials Center All of the school buildings owned by the District are air conditioned. Approximately 48% of the teachers in the District hold advanced degrees. The District employs approximately 2,335 total staff as follows: Certified Professionals Others Teacher salaries in the District are as follows: Degree Level Baccalaureate Masters Minimum Salary $24,596 $25,621 Selected historical enrollment figures in the District are as follows: Year 1980 1981 1982 1983 1984 1985 1986 1987 Enrollment 15,499 15,376 15,182 15,478 15,490 15,588 16,059 17,039 Year 1988 1989 1990 1991 1992 1993 1994 Source: Birdville Independent School District. 1,450 885 Maximum Salary $37,270 $40,067 Enrollment 17,200 17,529 18,505 19,100 19,358 18,929 19,039 Education beyond the high school level is readily available. The Northeast campus ofthe Tarrant County Junior College District is located partially within the City limits. Additionally, within a radius of 40 miles, there are a number of colleges and universities including Southern Methodist University, Texas Christian University, the University of North Texas and the University of Texas in Arlington. Transportation The City has prime positioning for easy access to major local, regional and national markets. Being just 7.5 miles from the Dallas/Fort Worth International Airport and 9 miles from the newly constructed Alliance Airport, the City is located in the hub of business activity and is an integral part of the rapidly growing Northeast Tarrant County Area. The City is strategically positioned on or near five major Interstate Highways. Using Interstate Loop 820, easy access is gained to Interstate 35 (north to Oklahoma and south to Austin, San Antonio and Laredo), Interstate 45 (north to Tulsa and south to Houston), Interstate 20 (west to Midland and EI Paso and east to Tyler and Shreveport), and Interstate 30 (east to Texarkana, Little Rock and Memphis). The accessibility factor also includes five rail lines in the Fort Worth area, one of which - St. Louis Southwestern - is located in the City. Age of Population (I) Median Income Per Household .............,............................... $ 43,094 Median Age of Population .... . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . , . . . . . .. 31.5 (1) Based on Bureau of Census, Department of Commerce. A - 3 Effective Buying Income Statistics $ 1,038,840,000 City Effective Buying Income (I) ..,....,................,............,.... 42,712 $ Median Household Effective Buying Income . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . % of Households by EBI Grouping: $10,000 - $19,999 9.7% $20,000 - $34,999 19.4% $35,000 - $49,999 20.8% $50,000 and Over 45.7% (1) Sales and Marketing Management, August 30, 1994. Labor Market Prorde (I) Avera2e Annual 1994 1993 1992 1991 1990 North Richland Hills Employed 28,449 27,498 26,314 23,084 23,375 Unemployed 1,273 1,412 1,426 1,406 1,318 Percent of Unemployed 4.3% 4.9% 5.1% 5.7% 5.3% Fort Worth/ Arlington Statistical Area Employed 764,130 738,612 694,100 684,700 693,400 Unemployed 45,546 50,728 49,100 47,600 44,800 Percent of Unemployed 5,6% 6.4% 6.6% 6.5% 6.1 % Tarrant County Employed 665,766 645,708 606,755 610,699 615,811 Unemployed 39,593 43,915 44,107 43,033 34,353 Percent of Unemployed 5.6% 6.4% 6,8% 6.6% 5.3% State of Texas Employed 8,785,200 8,507,600 8,112,000 7,986,800 7,941,300 Unemployed 604,700 641,800 650,400 575,200 583,100 Percent of Unemployed 6.4% 7.0% 7.4% 6.7% 6.8% (1) Texas Employment Commission, Austin, Texas. In 1993, the Commission changed its methodology in calculating employment figures. The figures are computed based on a statewide workforce with the local population shown as a percentage of statewide percentage. The new methodology is based on the 1990 census and has not yet been recalculated prior to 1990. Major Employers in the City Emplover Tecnol Medical Products, Inc. Birdville Independent School District Life Investors Insurance Co. HCA North Hills Medical Center City of North Richland Hills Wal-Mart H&M Food Systems, Inc. Foley's Department Stores Bates Container Corporation Hudiburg Chevrolet Home Depot Garden Ridge Sealy Mattress Manufacturing Company Burlington Northern Railroad Sack 'n Save Warehouse Food Store Product Disposable Medical and Hospital Supplies School District Insurance Medical Care Municipality Retail Sales Food Processor Department Store Corrugated Containers Automobile Dealership Hardware/Repair Retail Sales Pottery, Crafts and Housewares Mattresses Railroad Grocery Store Estimated Number of Emplovees (I) 976 803 (2) 700 480 468 400 350 246 195 190 180 150 150 110 105 (1) Top Employers of Northeast Tarrant County - North East Chamber of Commerce. (2) Total employees of Birdville Independent School District are 2,335; 803 are employed in North Richland Hills. A - 4 Building Permit Information Construction Commercial Residential Fiscal Number Number Total Total Year of Units Value of Units Value Units Value 1989 108 $ 6,620,001 418 $ 26,367,412 526 $ 32,987,413 1990 93 16,521,262 407 40,114,085 500 56,635,347 1991 102 9,146,301 542 14,718,718 644 23,865,019 1992 14 13,326,554 281 29,803,814 295 43,130,368 1993 21 13,579,157 420 48,727,412 441 62,306,569 1994 110 21,895,675 434 50,319,939 544 72,215,614 Source: City Records. Drainage Utility Fee The City has recently adopted a drainage utility district in accordance with the Municipal Drainage Act (the" Act") passed by the State legislature in 1989. The Act allows cities to declare municipal drainage to be a public utility, to charge fees for use and maintenance of the drainage system and to pennit drainage fees to be charged monthly on the water and sewer bi1Js. Non-payment of drainage fees may lead to a suspension of water service. The City contracted with Knowlton-English-Flowers, Inc. for the study and implementation of the drainage system and the structure. The City received the study in March, 1991 and the ordinance initiating the system and setting fees was adopted on September 23, 1991. The fee structure was developed using a $3.00 Equivalent Residential Unit ("ERU") per month. The District's Utility Fee ("DUF") is based on the individual parcel's contribution to the overall City runoff and thereby, that parcel's "use of the drainage facilities". Fees applicable to all residential platted properties other than multifamily are based on the zoning of the property and are set out below: Zoning R1 R2 R3 R-4-SD R-5-D R-6-T R-8 Runoff Coefficient $0.51 0.54 0.55 0.59 0.59 0.63 0.62 Fee Per Lot $3.42 2.58 2.22 1.14 1.14 0.96 1.44 All other lots, tracts and parcels of land with the City shall be charged monthly on the basis of the acreage and the use of the property. Fees on other than residential property are shown below: Land Use School, Church and Institutional Multifamily Offices Commercial Industrial Runoff Coefficient $0.62 0.66 0.78 0.80 0.81 Fee per Acre $11. 94 12.71 15.03 15.41 15.60 It is the intent of the City Council to use a portion of this revenue for debt service on drainage bonds issued in 1992. Excess revenue will be used for maintenance and for future drainage projects. A - 5 WATERWORKS AND SEWER SYSTEM Waterworks System The City acquired an existing Waterworks and Sewer System from the Tarrant County Water Supply Corporation in September, 1971. The properties acquired consisted of complete water and sewer facilities located in the City and the Town of Watauga (the "Town"), which adjoins the City to the west. The Town granted a franchise to the City to operate a water and sewer system in the Town for a period of 35 years, with the option to purchase that portion of the system within its boundaries at any time at a price (as certified by a registered Professional Engineer employed by the City, which is not less than the then appraised value of the portion being sold. Watauga and the City are presently discussing the possibility of the sale of part of the System to Watauga. The City has contracted with the City of Fort Worth whereby the City of Fort Worth has committed to deliver 10,400,000 gallons of treated water daily through a connection on the western edge of the City and 10,300,000 gallons of treated water through a connection on the southern edge of the City at a cost of $1.45 per 1,000 gallons. Additionally, reserve capacity and peak hour demand is provided by 5 wells, 3 in the Paluxy sand and 2 deeper wells in the Trinity sand. On a non-continuous basis, these wells are capable of 1,300,000 gallons daily. Storage capacity is provided by five elevated storage tanks with a total capacity of 6,500,000 gallons and five ground storage tanks with a total capacity of 11 ,080,000 gallons, The City has a total daily delivery capacity of 20,700,000 gallons per day through the two connections to the Fort Worth system, and has approval from Fort Worth to take an additional 8,000,000 gallons daily through a delivery facility on the southwestern edge of the City. The City has entered into a long tenn contract with the Trinity River Authority of Texas ("TRA "), whereby TRA would provide treated water through a point of delivery on the eastern edge of the City. TRA supplies water for the neighboring cities of Bedford and Euless and has now extended its system to provide water for the City, Colleyville and Grapevine. The City is supplied through a 16" tap on a 24" transmission main which will primarily serve the eastern and northern sections of the City. The tap will supply 5,000,000 gallons daily. The City is presently taking an average of 2,200,000 gallons per day from this TRA connection. TRA sold bonds in August, 1980, to finance the extension of the system. The City will pay monthly to TRA an amount sufficient to defray its percentage of the debt service and other cost of operations from net revenues of the City's Waterworks and Sewer System. Such payments constitute operating and maintenance expenses of the City's Waterworks and Sewer System. The City also has 7 Paluxy Sand wells that are used exclusively for the golf course irrigation system. Management of the golf course is invoiced monthly for water usage based on the City's cost of water, wells and operating expense. Water Usage Year Ending 9-30 1989 1990 1991 1992 1993 1994 Total Gallons Pumped 2,842,389,194 3,163,489,873 2,804,098,000 2,721,877,000 3,503,994,000 2,487,349,000 Average Daily Use 7,787,368 8,667,096 7,682,460 7,435,682 9,599,984 6,820,134 Peak Daily Usage 15,843,000 16,868,000 18,911,000 13,906,000 22,170,000 13,451,000 A-6 Ten Largest Water Customers for period ending 1-31-95 Customer H & M Food System North Hills Medical Center La Casita Mobile Homes Philip W. Twente JMB Income Properties Central Pacific Housing Ming & King Investments Appian Way Apartments Furr's Cafeteria Northridge Village Apartments Type of Property Food Processor Hospital and Professional Offices Mobile Home Park Apartments Shopping Mall Apartments Apartments Apartments Restaurant Apartments Source: City Utility Department records. Impact Fees Gallons 92,805,931 66,476,929 18,102,348 9,288,021 9,083,562 6,730,953 6,521,588 6,032,620 6,362,638 6.489.050 227,893,640 The City approved the collection of water and wastewater impact fees in June of 1990. % of Gallons 3.73% 2.67% 0.73% 0.37% 0.36% 0.27% 0,26% 0.24% 0,26% 0.26% Average Monthly Water Bill $ 31,655.69 6,746.06 6,696,64 3,707.70 3,042.02 2,703.19 2,601.80 2,227.66 2,125.95 2.069.17 63,575.88 The fees are charges imposed by the City for new development to generate funding, or recovering advances, for capital improvements or facility expansion costs by the City necessitated by or attributable to the new development. The fee structure is based on water service connection size. Monthly Water Rates (Effective February 1, 1994) 1. Billing policy where only one user or building is tied to the same meter: A. The monthly bill will be computed as follows. The minimum bill taken from Schedule A plus a volume charge of $2.45 per 100 cubic feet on monthly volume greater than the minimum volume from Schedule A. 2, Billing policy where more than one user or building is tied onto the same meter: It shall be the policy of the City to bill each home, homes, duplex, triplex, offices or any other building where more than one user is tied on the same meter at the rate of $9.00 per unit per month minimum for the first 267 cubic feet of water used, plus a volume charge calculated from Schedule A. 3. Billing for apartment complexes and trailer parks: A, $9.00 per month for each apartment or trailer for the first 267 cubic feet of water used plus a volume charge calculated from Schedule A. B. Apartment house or trailer park owner shall furnish a certified statement of occupancy prior to the 10th of each month. Failure to file occupancy statement will result in billing for 100% occupancy. Schedule A (Volume Used in Cubic Feet) Meter Size (inches) 3/4" ~ ..l..1L£.. ..1.1.LL --L- -L- 4" 6" and 8" Minimum Bill $ 9.00 $ 12,60 $ 17.11 $ 36.01 $ 46.82 $ 86.43 $ 144.06 $ 369.29 Volume Charge: $0.00 Minimum Bill for the first: 267 345 460 937 1,300 2,400 4,000 10,000 $2.45 for all above: 267 345 460 937 1,300 2,400 4,000 10,000 A -7 Sewer System The City owns and operates a complete sewage collection system within the corporate limits of the City and Watauga. The City has executed long-tenn contracts with the City of Fort Worth and the TRA to transport City's total effluent. Beginning in the year 1969, TRA issued bonds in the cumulative amount of $880,000 to construct, acquire or otherwise provide facilities necessary to transport and treat the effluent. Pursuant to contracts with the TRA, City is obligated to make annual payments to TRA in amounts sufficient to pay, when due, the total principal and interest on TRA's Bonds issued for these purposes, administrative and other operation and maintenance expenses chargeable to said bonds. All such annual payments have been declared operation and maintenance expenses of the Water and Sewer System, and are so accounted for in City's annual statements of income and expense. There is a principal amount of $120,000 of these Bonds outstanding as of 9-30-94. Sewer Rates (Effective February 1, 1994) 1. A monthly service charge shall be paid by all customers in the amount of $7.22. 2. A monthly volume charge shall also be charged to all customers in the amount of $1.17 per 100 cubic feet of water used, or wastewater produced, as more specifically set forth hereinafter. The monthly volume charge for residential customers will be based on the individual customer's average monthly water use during the previous winter quarter months of December, January and February; but in no event shall the volume used to compute this monthly charge exceed 2,500 cubic feet. The volumes used to compute these charges are based on the amount of water used by the residential customer as measured by a meter. Where no previous winter quarter average is available from the records, the volume to be used for this monthly volume charge shall be estimated, such estimated volume not to exceed 2,500 cubic feet per customer. 3. The monthly charges to commercial and industrial customers will be based on total water use for each month as measured by appropriate meters, with the provision that if a customer can show, to the satisfaction of the Director of Utilities, that a significant portion of the metered water usage does not enter the sanitary sewer system, the customer will be charged for only that volume entering the sewers, as detennined by a method approved by the Director of Utilities. 4. All Industrial Users: To be served on system only by specific contract approved by Council for the particular Industrial Sewage or Waste involved. 5. In the event a commercial customer is introducing sewage into the sewage system that creates unusual conditions or problems such as excessive oils, greases, or chemicals, the Director of Public Works shall advise the customer of his options, A. To correct at his own expense the conditions causing the excess. B. To pay a monthly rate to be determined by the Director of Utilities to the City equal to the expense of maintained and/or treating the excessive waste. 6. Billing policy where more than one user or building is tied onto the same water meter: It shall be the policy of North Richland Hills to bill each home, homes, duplex, triplex, offices, or any other buildings where more than one user is tied onto the same water meter at $7.22 per month for each customer unit for sewer, plus a monthly volume charge of $1.17 per 100 cubic feet of water used by the building. The monthly volume charge to be calculated as noted in paragraph (2)8 above with the exception that there shall be no volume limit as is the case for residential customers. 7. Billing for apartment complexes and trailer parks: A. $10.00 per month service charge plus $7.22 per month per apartment or trailer plus a monthly volume charge of $1.17 per 100 cubic feet of water used by the apartment complex or park. B. Apartment or trailer park owner shall furnish a certified statement of occupancy prior to the first of each month. Failure to file occupancy statement will result in billing for 100% occupancy. A - 8 Deposits Calculation of the Deposit. . . The required deposit will be based on historical average consumption using not less than 12 consecutive months of data, computed using the current North Richland Hills water and wastewater rates. The required deposit will be 1.5 times the average bill. If no recent historical data is available the deposit will be taken from Schedule B. All residential customers will use Schedule B. Schedule B (Water and Sewer Deposits) (Effective July I, 1988) Customer Type Water Sewer Total Residential: All Sizes: $ 37.00 $ 18.00 $ 55.00 Commercial: 3/4" - 1 1/4" $ 55.00 $ 36.00 $ 91.00 1 1/2" - 4" 350.00 180.00 530.00 6" - 8" 4,300.00 2,710.00 7,010.00 Multi-family: All Sizes/Per Unit $ 20.00 $ 19.00 $ 39.00 Rates established above for billings on or after February 3, 1994, include all current charges by the City's suppliers of purchased water and wastewater treatment. Any future changes in the City's cost of water purchased and wastewater treatment from the City's suppliers will be passed through to the City's customers. The changes will be maintained as a separate item by the Utility Billing Department and will be made available to utility customers upon request. Only changes in the cost of water purchases and sewer treatment will be passed through, Litigation Involving a Portion of the Waterworks and Sewer System As noted above, the City acquired an existing waterworks and sewer system from the Tarrant County Water Supply Corporation in 1971 which served the residents of North Richland Hills and the City of Watauga. In granting a franchise in 1971 to North Richland Hills to operate water and sewer facilities in the City of Watauga, an option to purchase that portion of the properties in Watauga was retained by the City of Watauga. Watauga has represented that the option to purchase was exercised in 1994, but no agreement has been reached between the parties on identifying the properties of the system to be sold or the purchase price for such properties. As a result of the dispute between the parties over the properties to be transferred and the purchase price therefor, the City of Watauga has filed suite against the City of North Richland Hills. the customers served by the properties in dispute is estimated to be 22%, more or less, of the total customers currently served by the entire system owned and operated by the City of North Richland Hills. The litigation is in the early discovery stage and is pending before the 236th Judicial District Court of Tarrant County, Texas under Cause No. 236-155408-94 styled City of Watauga. Texas vs. City of North Richland Hills. Texas. A - 9 Waterworks and Sewer System Operating Statement Operatine: Revenues Water and Sewer Service Sales Water and Sewer Connections Sewer Transportation Service Charges Inspection Fees Assessment Revenue Investment Income Total Revenues Operatine: Expenses Contractual Services Personal Services Repairs and Maintenance Supplies Franchise Fees Payments in Lieu of Taxes Administration Fees Total Operating Expenses Net Available for Debt Service Water Connections City of North Richland Hills City of Watauga Total Sewer Connections City of North Richland Hills City of Watauga Total Fund Balances Interest and Sinking Fund, 2-1-95 Fiscal Year Ended September. 1994 1993 1992 1991 1990 $ 17,214,168 $ 16,057,047 $ 14,047,924 $ 14,047,924 $ 13,549,958 443,208 377 ,247 577 ,493 577 ,493 93,365 15,881 13,931 14,443 14,443 13,210 281,635 321,824 318,712 318,712 293,393 43,910 29,709 43,592 43,592 31,876 25,005 29,917 43,624 -0- -0- 270.151 348.933 532.041 541.381 824.939 $ 18.293.958 $ 17.178.608 $ 15.577.829 $ 17.398.234 $ 14.806.741 $ 8,737,227 $ 8,359,887 $ 7,095,389 $ 7,095,389 $ 6,736,689 2,357,810 2,264,327 2,238,750 2,238,750 2,061,841 816,149 663,289 538,842 538,842 482,941 653,166 671,951 710,667 710,667 605,552 396,997 339,136 303,697 303,697 308,844 229,950 216,886 206,625 206,625 176,654 1.025.000 1.025.000 1.025.000 1.282.846 990.000 $ 14.216.299 $ 13.540.476 $ 12.118.970 $ 13.507.268 $ 11.362.521 $ 4.077.659 $ 3.638.132 $ 3.458.859 $ 3.891.058 $ 3.444.220 16,858 16,540 16,152 15,880 15,624 7.328 7.256 7.156 7.009 6.919 24,186 23,796 23,308 22,889 22,543 15,897 15,597 15,085 14,768 14,420 6.180 6.090 6.114 6.009 6.004 22,077 21,687 21,199 20,777 20,424 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,559,528 Reserve Fund, 2-1-95 .... .. .. ..... . .... ..... ... ........,... ..... ..... ....... $1,829,030 24,000 Coverages Trinity River Authority Reserve Fund, 2-1-95 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Average Annual Principal and Interest Requirements, 1995-2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Coverage by 9-30-94 Net Available for Debt Service. . , . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . $1,689,542 2.55 Times Maximum Annual Principal and Interest Requirements, 2003 . , . . . . . . , . . . . . . . . . . . . , . , . . . . . . . Coverage by 9-30-94 Net Available for Debt Service, , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,151,173 2.01 Times A - 10 APPENDIX B EXCERPTS FROM THE CITY OF NORTH RICHLAND HILLS, TEXAS ANNUAL FINANCIAL REPORT For the Year Ended September 30, 1994 The infonnation contained in this Appendix consists of excerpts from the City of North Richland Hills, Texas Annual Financial Report for the Year Ended September 30, 1994, and is not intended to be a complete statement of the City's [mancial condition. Reference is made to the complete Report for further infonnation. KPMG· Peat Marwick LLP 2500 City Center Tower II 301 Commerce Street Fort Worth. TX 76102 INDEPENDENT AUDITORS' REPORT The Honorable Members of City Council City of North Richland Hills, Texas: We have audited the accompanying general purpose financial statements of the City of North Richland Hills, Texas, as of and for the year ended September 30, 1994, as listed in the accompanying table of contents. These general purpose financial statements are the responsibility of the City of North Richland Hills, Texas' management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and peñorm the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose fmancial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of North Richland Hills, Texas, as of September 30, 1994, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in confonnity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund and account group financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of North Richland Hills, Texas. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. The supplemental information as listed under the statistical section in the table of contents has been summarized from the City's records and was not subjected to the auditing procedures that were applied to the general purpose financial statements. Accordingly, we express no opinion on such information. \<-~~~ ~~,~"-\..J.-? December 22, 1994 1 Member Firm of Klynveld Peat Marwlck Goerdeler (This page left blank intentionally) 2 CITY OF NORTH RICHLAND IDLLS, TEXAS Combined Balance Sheet - All Fund Types and Account Groups September 30, 1994 with comparative totals for September 30, 1993 Assets and Other Debits General Fund Deposits and investments, at cost (note 2) $ 2,587,407 Investments, at market (notes 2 and 12) Receivables (net, where applicable, of allowances for estimated uncollectible amounts of $235,135): Accounts Taxes (note 3) 1,392,211 Accrued interest Special assessments (note 4) Other 110, 849 Prepaid expenses Due from other funds (note 14) 21 , 612 Inventories, at cost Restricted assets: Deposits and investments, at cost (note 2) Property, plant and equipment (net, where applicable, of accumulated depreciation) (note 5) Other assets (net where applicable, of accumulated amortization) Advances to other funds (note 14) Amount available in debt service fund Amount to be provided for retirement of general long-term debt Total assets and other debits 400,268 Governmental Fund Types Special Debt Revenue Service Funds Funds 7,802,771 Capital Projects Fund 2,134,572 10,318,023 148,266 575,645 38 254,750 95,414 691 , 917 $ 4,512,347 8,526,720 2,134,572 11,360,104 3 Exhibit 1 Fiduciary Propriety Fund Types Fund Type Internal Enterprise Service Agency Funds Funds EYlli! Account Groups General General Fixed Long-term Assets I>ebt Totals (Memorandum Only) 1994 l2.23. 45,456,959 25,508,498 2,143,721 1,915,978 634,232 1,979,954 2,143,721 2,602,466 29,723 3,035,205 2,688,873 1,967,856 1, 788, 648 95,452 92,013 ()91,917 1, 117, 538 110, 849 172,225 202,000 31,800 233,800 152,697 11, 759 33,371 48,313 291,376 47,397 338,773 359,953 7,968,609 7,968,609 8,556,024 , 52,966,672 1,223,066 79,324,045 . 133~ 513,783 124,227,911 276,424 276~424 271,021 492,775 893,043 911,472 2,103,386 2,103,386 1, 102,403 47,117,121 47,117,121 46, 898 , 996 ¡ 65,446,313 3,311,940 2,143,721 79,324,045 49,220,507 225,980,269 215,812,563 (Continued) 4 CITY OF NORTH RICHLAND HILLS, TEXAS Combined Balance Sheet - All Fund Types and Account Groups, Continued Governmental Fund Types Special Debt Capital General Revenue Service Projects Liabilities EYm! Funds ~ EYlli! Bank overdraft $ 35,811 182,419 Accounts payable 181,830 425,834 390,016 Accrued liabilities (notes 1(1), 7 and 11) 682,525 12,661 Retainage payable 29,055 Deposits and other liabilities 64,043 9,304 31, 186 409,511 Due to other funds (note 14) Payable from restricted assets: Accrued interest payable Current portion of revenue bonds and contractual obligation payable (note 7) Accounts payable Retainage payable Customers'deposits Developers' deposits Golf course obligations (note 7) Discount on golf course obligations General obligation bonds payable (note 7) Sales tax revenue bonds (note 7) Certificates of obligation (note 7) Notes payable (note 7) Contractual obligation payable (note 7) Arbitrage rebate (note 7) Revenue bonds payable (note 7) Discount on revenue bonds payable Deferred revenue (notes 3 and 4) 159, 166 848,290 Deferred compensation payable (note 12) Advances from other funds (note 14) Total liabilities 1. 087 , 564 483,610 31. 186 1,859,291 5 Exhibit 1. Continued Fiduciary Propriety Fund Types Fund Type Account Groups Internal General General Totals Enterprise Service Agency Fixed Long-term (Memorandum Only) Funds Funds Fund Assets :lli:b! 1994 1993 109,688 42,462 370,380 1,458, 105 1,513,323 76, 169 2,587,172 1,930,222 251, 492 546,598 525,548 2,018,824 1,623,965 29,055 142,736 26,405 540,449 520,892 33,371 33,371 48, 313 101, 152 101,152 99,919 142,083 142,083 99,583 32,890 32,890 297 81,870 1,258,032 1,258,032 1,192,849 8,037 8,037 16,305 4,870,000 4,870,000 4,870,000 (78,400) (78,400) (83,012) 35,099,119 35,099, 119 37,271,567 11,185,000 11,185,000 7,500,000 1,850,000 1,850,000 2,085,000 560,840 560,840 684,321 145,000 145,000 47, 182 15,228,475 15,228,475 16, 132,749 (208,527) (208,527) (222,920) 1, 007, 456 1,223,566 2,143,721 2,143,721 1,915,978 893,043 893,043 911, 472 24,326,064 665,229 2,143,721 49,220,507 79,817,172 79,550,959 (Continued) 6 CITY OF NORTH RICHLAND HILLS, TEXAS Combined Balance Sheet - All Fund Types and Account Groups, Continued Governmental Fund Types Special Debt Capital General Revenue Service Projects Equity and Other Credits Fund Funds Funds Fund Contributed capital (note 10) $ Investment in general fixed assets Retained earnings: Reserved, principally for revenue bond principal and interest Unreserved Fund balances: Reserved for encumbrances 199,963 6,955,407 1,909,625 Reserved for debt service 2, 103,386 Reserved for advances to other funds 400,268 Unreserved: Designated for capital improvements 471,334 7,591,188 Unreserved - undesignated 2,824,552 616,369 Total retained earnings/ fund balances 3,424,783 8,043, 110 2, 103,386 9,500,813 Total equity and other credits 3,424,783 8,043, 110 2, 103,386 9,500,813 Commitments and contingent liabilities (notes 5, 6, 7, 9, and 11) Total liabilities, equity and other credits $ 4,512,347 8,526,720 2, 134,572 11,360, 104 See accompanying notes to general purpose financial statements. 7 Exhibit 1. Continued Fiduciary Propriety Fund Types Fund Type Account Groups Internal General General Totals Enterprise Service Agency Fixed Long-term (Memorandum Only) Funds Funds Fund Assets Debt 1994 1993 22,450,090 1, 391 , 462 23,841,552 22,896,552 79,324,045 79,324,045 72,104,324 2,510,236 2,510,236 2,506,743 16,159,923 1,255,249 17,415,172 16,763,220 9,064,995 1,622,843 2, 103,386 1, 102,403 400,268 423,678 8,062,522 15,146,476 3,440,921 3,695,365 18,670,159 1,255,249 42,997,500 41,260,728 41,120,249 2,646,711 79,324,045 146,163,097 136,261,604 65,446,313 3,311,940 2,143,721 79,324,045 49,220,507 225,980,269 215,812,563 8 - CITY OF NORTH RICHLAND HILLS, TEXAS Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types Year ended September 30, 1994 with comparative totals for year ended September 30, 1993 Revenues: Taxes (notes 1(0) and 3) Licenses and permits Charges for services (note 1(0)) Fines Contributions Special assessments (note 4) Interest income Intergovernmental Drainage fees Miscellaneous Total revenues Expenditures: Current: General government Public safety Culture and recreation Public works Parks and recreation Capital outlay (note 1(0)) Debt service: Retirement of generallong-tenn debt (note 7) Interest and fiscal agent charges Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Proceeds from bonds (note 7) Proceeds from note payable (note 7) Operating transfers in Operating transfers out Total other financing sources (uses) - net Excess (deficiency) of revenues and other sources over expenditures and other uses Fund balances at beginning of year, as previously reported Restatement (note l(p)) Fund balances at beginning of year, as restated Fund balances at end of year General Fund $ 12,720,580 887,968 2,428,672 775,510 166,853 166,558 17, 146, 141 4,288,662 8,390,486 2,044,490 1,623,534 16,347,172 798,969 209,574 (1, 195,979) (986,405) (187,436) 3,612,219 3,612,219 $ 3,424,783 See accompanying notes to general purpose financial statements. 9 Special Revenue Funds 3,065,036 145,835 263,674 659,955 475,400 4,609,900 209,698 416,008 406, 730 2,755,704 3, 788, 140 821,760 3,895,000 52,751 (2,359, 181) 1,588,570 2,410, 330 5,632,780 5,632,780 8,043, 110 ~ J Exhibit 2 Debt Capital Totals Service Projects (Memorandum Only) Funds Fund 1994 1993 4,023,029 19,808,645 17,282,145 887,968 939,404 2,428,672 2,090,580 775,510 617,867 145,835 136,698 249,976 249,976 902,531 41, 723 482,098 954,348 849,945 19,536 659,955 570,096 641, 958 394,228 4,064,752 732,074 26,552,867 23,803,030 4,288,662 4,085,564 8,600,184 8,468,941 2,460,498 2,202,671 1,623,534 1,466, 640 406,730 190,978 4,656,371 7,412,075 10,288,701 3,062,513 3,062,513 2,236,367 2,755,501 2,755,501 2,543,527 5,818,014 4,656,371 30,609,697 31, 483,389 (1, 753, 262) (3,924,297) (4,056,830) (7,680,359) 3,895,000 12,550,000 615,000 2,754,245 1,781,747 4,798,317 1,214,473 (3,555,160) (968,874) 2,754,245 1, 781, 747 5, 138, 157 13,410,599 1,000,983 (2,142,550) 1, 081, 327 5,730,240 1, 102,403 11,643,363 21,990,765 15,708,257 552,268 1, 102,403 11, 643, 363 21,990,765 16,260,525 2, 103,386 9,500,813 23,072,092 21,990,765 10 CITY OF NORTH RICHLAND HILLS, TEXAS Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General, Special Revenue and Debt Service Fund Types Year ended September 30, 1994 General Fund Revenues: Taxes Licenses and permits Charges for services Fines Contributions Interest income Intergovernmental Miscellaneous Total revenues Expenditures: Current: General government Public safety Culture and recreation Public works Parks and recreation Debt service: Retirement of general long-term debt Interest and fiscal agent charges Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Operating transfers in Operating transfers out Total other financing sources - net Excess (deficiency) of revenues and other sources over expenditures and other uses Fund balances at beginning of year Fund balances at end of year Bud~et $ 12,328,415 882,841 2,364,607 775,205 150,000 164,840 16,665.908 4,276,828 8,569,779 2, 112,838 1,637,265 16.596,710 69, 198 240,000 (1.256,000) (1. 016. 000) $ (946,802) See accompanying notes to general purpose financial statements. 11 Actual 12,720,580 887,968 2,428,672 775,510 166,853 166.558 17. 146, 141 4,288,662 8,390,486 2,044,490 1,623.534 16,347.172 798,969 209,574 (1, 195,979) (986.405) (187,436) 3.612,219 $ 3,424,783 Variance - Favorable (Unfavorable) 392, 165 5, 127 64,065 305 16,853 1,718 480,233 (11 , 834 ) 179, 293 68,348 13,731 249.538 729,771 (30,426) 60,021 29.595 759,366 Exhibit 3 Special Revenue Funds Variance- Actual Favorable Budget (note Hd)) (Unfavorable) Debt Service Funds Budeet Variance - Favorable Actual (Unfavorable) 200,000 191,353 (8,647) 4,023,029 4,023,029 163,406 8,900 145,835 6,223 (17,571) (2,677) 100,000 41,723 (58,277) 372,306 343,411 (28,895) 4,123,029 4,064,752 (58,277) 477,421 416,008 61,413 3,014,967 3,062,513 (47,546) 2,774,624 2,755,501 19, 123 477,421 416,008 61, 413 5,789,591 5,818,014 (28,423) (105, 115) (72,597) 32,518 (1, 666, 562) (1,753,262) (86,700) 1,704,055 2,754,245 1 , 050, 190 1,704,055 2,754,245 1, 050, 190 (105, 115) (72,597) 32,518 37,493 1,000,983 963,490 285,414 1, 102,403 212,817 2, 103,386 12 CITY OF NORTH RICHLAND HILLS, TEXAS Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types Year ended September 30, 1994 with comparative totals for year ended September 30, 1993 Internal Enterprise Service Funds Funds Operating revenues: Water and sewer service $ 17,214,168 Water and sewer connections 443,208 Sewer transportation 15,881 Service charges 281 , 635 Inspection fees 43,910 Golf course fees and charges 2,008,893 Assessment revenue 25,005 Insurance premiums (notes 1 (0) and 11) 2,513,116 Maintenance services (note 1(0» 1,990,874 Total operating revenues 20,032,700 4,503,990 Operating expenses: Contractual services (note 9) 8,737,227 424,975 Personal services 2,357,810 762,663 Cost of golf course sales and services 1 , 267, 261 Repairs and maintenance 816, 149 149,836 Supplies 653, 166 293,326 Depreciation 1,415,079 161,342 Franchise fees (note 1(0» 396,997 Payments in lieu of taxes (note 1(0» 229,950 Administration fees (note 1 (0) and 11) 1 , 251, 770 Claims (note 11) 2,598,909 Total operating expenses 17,125,409 4,391,051 Operating income 2,907,291 112,939 Nonoperating revenues (expenses): Interest income (note 14) 277,762 72,757 Interest expense and fiscal agent charges (note 14) (1,493,089) Gain (loss) on disposal of fixed assets (l0,173) 31, 115 Total nonoperating revenues (expenses) - net (l, 225, 500) 103,872 Income before operating transfers 1 , 681, 791 216,811 Operating transfers out (l, 133,731) ( 109, 426) Net income 548,060 107,385 Retained earnings at beginning of year 18,122,099 1,147,864 Retained earnings at end of year $ 18,670,159 1,255,249 See accompanying notes to general purpose financial statements. 13 Totals (Memorandum Only) 1994 1993 17,214,168 443,208 15,881 281,635 43,910 2,008,893 25,005 2,513, 116 1,990,874 24,536,690 16,057,047 377,247 13, 931 321,824 29, 709 2,024,857 29,917 2,285,671 1, 920, 961 23,061, 164 9,162,202 3,120,473 1,267,261 965,985 946,492 1,576,421 396,997 229,950 1 , 251, 770 2,598,909 21, 516,460 3,020,230 8,780,241 3,005,903 1,144,482 835,652 981,710 1,499,507 339, 136 216,886 1,272,416 2,690,983 20,766,916 2,294,248 350,519 (1,493,089) 20,942 (1, 121, 628 ) 1,898,602 (1,243, 157) 655,445 19,269,963 19,925,408 429,505 (1,492,681 ) 62,929 (1,000,247) 1, 294, 001 (245,599) 1,048,402 18,221,561 19,269,963 Exhibit 4 14 ... ... CITY OF NORTH RICHLAND IDLLS, TEXAS Combined Statement of Cash Flows - All Proprietary Fund Types Year ended September 30, 1994 with comparative totals for year ended September 30, 1993 Internal Totals Enterprise Service (Memorandum Only) Funds Funds 1994 1993 Operating income $ 2,907,291 112,939 3,020,230 2,294,248 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 1,415,079 161,342 1,576,421 1,499,507 Amortization 16,011 16,011 29,380 Change in assets and liabilities: Increase in accounts receivable (43,466) (29,218) (72,684) (401,273) Decrease (increase) in inventories 25,294 (4,114) 21,180 (32,989) Increase in prepaid expenses (49,303) (49,303) (698) Increase in other assets (16,802) (16,802) Increase (decrease) in accounts payable 153,272 (3,450) 149,822 230,084 (Decrease) increase in accrued liabilities (4,076) 31,364 27,288 200,980 Increase in other current liabilities 21 , 499 21,499 (81,278) Increase in customers' deposits 65, 183 65, 183 63, 128 Total adjustments 1,582,691 155,924 1, 738, 615 1, 506, 841 Net cash provided by operating activities 4,489,982 268,863 4,758,845 3,801,089 Cash flows from noncapital financing activities: Increase (decrease) in bank overdraft (777,381) 42,462 (734,919) (210, 481 ) Operating transfers to other funds (1, 133,731) (109,426) (1,243, 157) (245,599) Net cash used for noncapital financing activities (1,911,112) (66,964) (1,978,076) (456,080) (Continued) 15 CITY OF NORTH RICHLAND HILLS, TEXAS Exhibit 5. Continued Combined Statement of Cash Flows - All Proprietary Fund Types, Continued Enterprise Funds Internal Service Funds Totals (Memorandum Only) 1994 1993 Cash flows from capital and related financing activities: Acquisition and construction of capital assets $ (2,285,324) (488,575) (2,773,899) (3,616,554) Payments made on construc- tion contracts applicable to retain age and/or refunding of developers' deposits Principal paid on amounts due to and advances from other funds Principal paid on revenue obligations and note payable Proceeds on contractual obligations Interest paid on revenue and golf course obligations and note payable Receipts from collections of amounts due from other funds and advances to other funds Proceeds from sale of capital assets Net cash used for capital and related financing activities Cash flows from investing activities - Interest on investments Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (8,268) (8,268) (508) (33,371) (33,371) (30,687) (1,205,970) (1,205,970) (1, 132,294) 180,000 180,000 (1,255,247) (1,255,247) (1,335,535 ) 11, 760 11, 760 10,721 37,050 54,359 91, 409 104,861 (4,559,370) (434,216) (4,993,586) (5,999,996) 277,762 72,757 350,519 472,430 (1, 702, 738) (159,560) (1, 862, 298) (2,182,557) 10,305,579 2, 139,514 12,445,093 14,627,650 $ 8,602,841 1,979,954 10,582,795 12,445,093 (Continued) 16 Exhibit 5. Continued CITY OF NORTH RlCHLAND HILLS, TEXAS Combined Statement of Cash Flows - All Proprietary Fund Types, Continued Noncash capital and related financin~ activities: During 1994 and 1993, the Water and Sewer Fund capitalized interest in the amounts of $76,010 and $132,590, respectively. During 1994 and 1993, bond discount amortization on revenue bonds totalled $312,619 ($298,226 imputed interest on zero coupon bonds and $14,393 amortization of discount on bonds) and $291,499 ($277,106 imputed interest on zero coupon bonds and $14,393 amortization of discount on bonds), respectively. During 1994 and 1993, developers contributed utility plant assets in the amount of $945,000 and $1,177 ,658 respectively. During 1994 and 1993, the Water and Sewer Fund obtained utility plant assets in the amount of $81,870 and $35,299, respectively, by recording retain age applicable to construction contracts. See accompanying notes to general purpose financial statements. 17 ¡ ij. ~ t' ì 1: i f f L I- ~····.:L:t:~:';;~{'LL\.tÚ':":t· ;~:¡(";@;;~':¡j:§j;~~,_o_. CITY OF NORTH RICHLAND HILLS, TEXAS Notes to General Purpose Financial Statements September 30, 1994 (1) Summary of Si~nificant Accountin~ Policies The City of North Richland Hills Home Rule Charter was adopted by the voters at an election held on November 3, 1964. The City operates under a Council-Manager fonn of government. The accounting policies of the City of North Richland Hills, Texas confonn to generally accepted accounting principles as applicable to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the more significant of such policies: (a) Reporting Entity As required by generally accepted accounting principles, these financial statements present the primary government and its component units, entities for which the government is considered to be financially accountable. The blended component unit, although a legally separate entity, is, in substance, part of the primary government's operations and so data from this unit is combined with data of the primary government. The blended component unit has a September 30 year end. Blended Component Unit - The Parks and Recreation Facilities Development Corporation Fund (PRD) serves all the citizens of the City and is used to account for the accumulation and use of resources to build and improve City parks. The PRD is reported as a special revenue fund. Complete financial statements for the individual component unit may be obtained at the City's offices. (b) Basis of Presentation - Fund Accountin~ The accounts of the City are organized on the basis of funds or account groups, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts which comprise its assets, liabilities, retained earnings/fund balance, revenues and expenses/expenditures. The various funds are grouped by type in the general purpose financial statements. Account groups are financial reporting devices designed to provide accountability for certain assets and liabilities that are not recorded in funds. The following fund types and account groups are used by the City: GOVERNMENT AL FUND TYPES Governmental Funds are those through which most governmental functions of the City are financed. The acquisition, use, and balances of the City's expendable financial resources and the related liabilities (except those accounted for in the proprietary fund types) are accounted for through governmental funds. The measurement focus is upon detennination of changes in financial position, rather than upon net income detennination. The following are the City's governmental fund types: (Continued) 18 ..,.......- CITY OF NORTH RICHLAND HILLS, TEXAS Notes to General Purpose Financial Statements GOVERNMENTAL FUND TYPES. Continued General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments) that are legally restricted to expenditures for specified purposes. Debt Service Funds - The Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term and sales tax revenue debt principal, interest, and related costs. Capital Projects Fund - The Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by the proprietary fund types). Financing is provided primarily by the sale of general obligation bonds. Certain projects are partially financed by special assessments. PROPRIETARY FUND TYPES Proprietary funds are used to account for activities that are similar to those often found in the private sector. The measurement focus is upon determination of net income and capital maintenance. Following are the City's proprietary fund types: Entex:prise Funds - Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Internal Service Funds - Internal Service Funds are used to account for goods or services provided by one department to other departments of the City on a cost reimbursement basis. FIDUCIARY FUND TYPE Agency Fund - Fiduciary funds are used to account for assets held by the City in a trustee capacity or as an agent. Agency funds are custodial in nature and do not involve measurement of results of operations. (Continued) 19 CITY OF NORTH RICHLAND IDLLS, TEXAS Notes to General Purpose Financial Statements ACCOUNT GROUPS Account groups are used to establish accounting control and accountability for the City's general fixed assets and general long-term debt. The following are the City's account groups: General Fixed Assets Account Group - This account group is established to account for all fixed assets of the City, other than those accounted for in proprietary funds. General Long-Term Debt Account Group - This account group is established to account for all long-term debt of the City except that accounted for in proprietary funds. (c) Basis of Accounting The modified accrual basis of accounting is followed by governmental funds and the agency fund. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual, i.e., both measurable and available to finance expenditures of the fiscal period. "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenues not considered available are recorded as deferred revenue. Expenditures are recorded when the related fund liability is incurred except for (1) interest on general long-term obligations, which is recorded when due or when amounts have been accumulated in the Debt Service Fund for payments to be made early in the following year, and (2) a portion of accrued vacation leave (note 1(1)), which is recorded in the general long- term debt account group. Property tax, sales tax, drainage fees and special assessment revenues are recognized under the susceptible to accrual concept. Franchise taxes, licenses and permits, charges for services (excluding administration fees), fines, contributions, and miscellaneous revenues are recorded as revenues when received in cash because they are generally not measurable until actually received. Interest income, intergovernmental revenue (Le. illegal alien detention fees) and administration fees are recorded as earned since they are measurable and available. The accrual basis of accounting is utilized by the proprietary funds. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. (d) Budgetary Data The City Council follows these procedures in establishing budgetary data reflected in the general purpose financial statements: (1) Prior to September 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. (Continued) 20 - CITY OF NORTH RICHLAND HILLS, TEXAS Notes to General Purpose Financial Statements (d) Bud~etary Data. Continued (2) Public hearings are conducted to obtain taxpayer comments. (3) Prior to September 30, the budget is legally enacted through passage of an ordinance. (4) The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council. (5) Fonnal budgetary integration is employed as a management control device during the year for the General Fund, Special Revenue Funds (excluding the Special Investigation Fund, Drainage Utility Fund, and the Parks and Recreation Facilities Development Fund) and Debt Service Fund. Budgetary control is maintained at the fund level. (6) Legally adopted budgets for the General, Special Revenue, and Debt Service Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budgeted amounts are as originally adopted and amended by the City Council or as transferred between departments by the City Manager. During the year, several supplementary appropriations of approximately $250,000 and revised revenue estimates were necessary. Appropriations lapse at year end. (7) No annual budget was adopted for three Special Revenue Funds (Special Investigation Fund, Drainage Utility Fund and Parks and Recreation Facilities Development Fund) for the year ended September 30, 1994 as shown below: Special Revenue (Actual) Excess (deficiency) of revenues and other sources over expenditures and other uses: Budgeted funds (budgetary basis) Nonbudgeted funds Total (GAAP basis) $ (72,597) 2,482.927 $ 2,410,330 (8) Budgetary data for the Capital Projects Fund, Drainage Utility Fund, and the Parks and Recreation Facilities Development Fund has not been presented in the accompanying general purpose financial statements as such funds are budgeted over the life of the respective project and not on an annual basis. Accordingly, formal budgetary integration of the Capital Projects Fund, Drainage Utility Fund, and the Parks and Recreation Facilities Development Fund is not employed and comparison of actual results of operations to budgetary data for such funds are not presented. (9) Budgetary data for proprietary funds has not been presented since the reporting on such budgets is not legally required. (Continued) 21 CITY OF NORTH RICHLAND HILLS, TEXAS Notes to General Purpose Financial Statements (e) Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of funds are recorded in order to reserve that portion of the applicable fund balance, is employed in the governmental funds. Encumbrances are reported as reservations of fund balances because they do not constitute expenditures or liabilities. (f) Deposits and Investments Deposits consist of cash (principally interest bearing accounts) and a certificate of deposit. Investments consist of (1) investments in a public funds investment pool which are recorded at cost (note 2) and (2) Deferred Compensation Agency Fund investments in mutual funds which are recorded at market value. For purposes of the statement of cash flows, the Proprietary Funds consider all highly liquid (i.e., maturity date of three months or less from the date of purchase) deposits and investments (including restricted assets) to be cash equivalents. (g) Inventories Inventories of proprietary funds are valued at cost (first-in, first-out method). (h) Property. Plant and Equipment - Proprietary Funds Property, plant and equipment owned by proprietary funds is stated at cost or estimated fair market value at the date contributed. Depreciation has been provided on a straight-line basis over the estimated useful lives of the assets. The estimated useful lives are as follows: Building and improvements 30 years Land improvements 50 years Utility plant in service 38-50 years Machinery and equipment 3-10 years Net interest expense of $76,010 related to assets constructed by Enterprise Funds during the year ended September 30, 1994 was capitalized. (i) General Fixed Assets General fixed assets are recorded as capital outlay expenditures in the General Fund, Capital Projects Fund, or Special Revenue Funds, and capitalized at cost in the General Fixed Assets Account Group. In the case of gifts or contributions, such assets are recorded in the General Fixed Assets Account Group at estimated fair market value at the time received. 22 (Continued) CITY OF NORTH RICHLAND HILLS, TEXAS Notes to General Purpose Financial Statements General fixed assets contributed by developers or other contractors consisting of certain improvements other than buildings, including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems, have not been capitalized. Such assets nonnally are immovable and of value only to the City; therefore, the purpose of stewardship for these items is satisfied without recording these assets. Infrastructure constructed by the City has been capitalized at cost in the General Fixed Assets Account Group. No depreciation has been provided on general fixed assets, and no interest has been capitalized. G) Other Assets - Entel1'rise Funds Other assets consist primarily of expenses incurred in connection with the issuance of certain outstanding revenue bonds and golf course obligations. Such charges are amortized on a straight-line basis over the lives of the respective bonds or obligations. (k) Advances to Other Funds - General Fund Noncurrent portions of long-tenn interfund loans receivable are reported as advances and are equally offset by a fund balance reserve account which indicates that they do not constitute expendable available financial resources and therefore are not available for appropriation. (I) Vacation and Sick Pay City employees are granted vacation and sick pay in varying amounts. In the event of termination, an employee is reimbursed for all accumulated unused vacation. No reimbursement is made for accumulated unused sick leave upon termination of employment. Vacation pay is accrued as vested and included in accrued liabilities in the accompanying combined balance sheet. Sick pay is recorded when taken. Accrued vacation pay that is expected to be liquidated with expendable available financial resources is reported as an expenditure and a fund liability of the governmental fund that will pay it. Amounts of accrued vacation pay that are not expected to be liquidated with expendable available financial resources are reported in the generallong-tenn debt account group. No expenditure is reported for these amounts. Accrued vacation pay of proprietary funds is recorded as an expense and liability of those funds as the benefits accrue to employees. Accrued vacation pay at September 30, 1994 consisted of the following: General Fund General Long-tenn Debt Account Group Water and Sewer (Enterprise) Fund Support Services (Internal Service) Fund $ 111, 338 525,548 108,448 27, 810 $ 773, 144 (Continued) 23 ,... CITY OF NORTH RICHLAND HILLS, TEXAS Notes to General Purpose Financial Statements (m) Restricted Assets Certain proceeds of Enterprise Fund bonds, as well as certain resources set aside for their repayment, are classified as restricted assets because their use is limited by applicable bond covenants. Retained earnings have been reserved for the excess of restricted assets over related liabilities to the extent such restricted assets were accumulated from revenues (i.e., in some cases, restricted assets were obtained in total or in part from bond proceeds). (n) Un billed Char~es Unbilled utility service charges of the Water and Sewer (Enterprise) Fund are estimated and recorded as receivables, net of estimated uncollectibles. (0) Transactions between Funds Quasi-external transactions are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions, except quasi-external transactions and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers and are included in the results of operations of both governmental and proprietary funds. The General Fund charges the Water and Sewer (Enterprise) Fund a franchise fee ($315,888 in 1994) and a payment in lieu of tax (i.e., property tax) ($166,440 in 1994). Such charges are recorded as tax revenues by the General Fund and operating expenses by the Water and Sewer (Enterprise) Fund. The General Fund charges the Water and Sewer (Enterprise) Fund, Capital Projects Fund, and the Parks and Recreation Facilities Development Fund (Special Revenue Fund) an administration fee for certain general and administrative services provided to such funds. Such charges are recorded as charges for services revenue by the General Fund ($1,585,000 in 1994), operating expense by the Water and Sewer (Enterprise) Fund ($1,025,000 in 1994), capital outlay expenditure by the Capital Projects Fund ($210,000 in 1994), and parks and recreation expenditure by the Parks and Recreation Facilities Development Corporation Fund ($350,000 in 1994). The Internal Service Funds record charges to other funds for services rendered as operating revenues (see note 11). The respective funds record the related charges as operating expenses or expenditures, as appropriate. 24 (Continued) CITY OF NORTH RICHLAND HILLS, TEXAS Notes to General Purpose Financial Statements (p) Restatement of Fund Balance The September 30, 1992 General Fund fund balance has been restated by $552,268 as the City changed its method of recognizing sales tax revenue. (q) Fund Equity Designated fund balances represent tentative plans for capital improvements as determined by the City Council for future use of financial resources. (r) Fund Deficit The Self-Insurance (Internal Service) Fund incurred an accumulated deficit of $166,070 at September 30, 1994 due to unexpected major medical claims. It is management's intent to cure this deficit through increased charges to the user funds and possible increasing employee dependent coverage rates. The accumulated deficit of $1,162,837 reported by the Golf Course Fund is primarily a result of replanting expenses ($322,769 in 1990), loss on in-substance defeasance of golf course obligations ($217,646 in 1991) and interest expense in excess of operating income for 1990, 1991, 1992, and 1994. It is management's intent to cure this accumulated deficit through increased operating income in future periods. (s) Comparative Data Comparative data for the prior year have been presented in the accompanying general purpose financial statements in order to provide an understanding of changes in the City's financial position and operations. However, complete comparative data (i.e., presentation of prior year totals by fund type in each of the statements) have not been presented since their inclusion would make the statements unduly complex and difficult to read. Certain amounts presented in the prior year have been reclassified to conform to the 1994 presentation. (t) Total Columns Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. (Continued) 25 CITY OF NORTH RICHLAND HILLS, TEXAS Notes to General Purpose Financial Statements (2) Deposits and Investments Substantially all operating deposits and investments are maintained in pooled deposits and investment accounts or are held by a third party administrator (i.e., deferred compensation plan - note 12). Interest income relating to pooled deposits and investments is allocated to the individual funds monthly based on each fund's pro- rata share of total pooled deposits and investments. Legal provisions generally permit the City to invest in certificates of deposit, repurchase agreements, public funds investment pools, direct obligations of the United States of America or its subdivisions and state and local government securities. During the year ended September 30, 1994, the City did not own any types of securities other than those permitted by statute. During 1994, the City invested in Texas Local Government Investment Pool (TexPool) and certificates of deposit TexPool, a public funds investment pool created by the Treasurer of the State of Texas acting by and through the Texas Treasury Safekeeping Trust Company, is empowered to invest funds and act as custodian of investments purchased with local investment funds. Authorized investments of TexPool include obligations of the United States of America or its agencies, direct obligations of the State of Texas or its agencies, certificates of deposit and repurchase agreements. At September 30, 1994, the carrying value of the City's investments in TexPool was $33,356,366 and the market value was approximately $32,909,000. As of November 30, 1994, the City's total unrealized loss was approximately $631,000, an increase of approximately $184,000 from September 30, 1994. The City does not anticipate any realized losses on this investment due to the State of Texas backing this investment pool. A summary of the City's deposits and investments at September 30, 1994 follows: Canyin& Amount Cash and certificate of deposit $ 69,202 Investments: Public funds investment pool Investment in deferred compensation mutual fund (note 12) at market value Total investments 33,356,366 2,143,721 35,500,087 $ 35,569,289 $ 25,456,959 2,143,721 27,600,680 7,968,609 $ 35,569,289 Unrestricted: Deposits and investments, at cost Investments, at market Total unrestricted Restricted deposits and investments, at cost (Continued) 26 CITY OF NORTH RICHLAND HILLS, TEXAS Notes to General Purpose Financial Statements At September 30, 1994, the carrying amount of the City's cash and certificate of deposit was $69,202 (exclusive of the bank overdraft of $370,380) and the bank balance was $523,323. The bank balance was entirely covered by Federal depository insurance or by collateral held by the City's agent pledged in the City's name which is considered a category 1 under the provisions GASB No. 3 except $8,310 which was uninsured or uncollateralized which is considered a category 3 under the provisions of GASB No.3. Investments in TexPool are not categorized because they are not evidenced by securities that exist in physical or book entry form. (3) Property Tax The City's property tax is levied each October 1 on the assessed value listed as of the prior January 1 for all real property and certain personal property located in the City. Tax liens attach as of February 1. The assessed value, net of exemptions, upon which the fiscal 1994 levy was based was $1,430,354,738. Property taxes are limited by the Texas Constitution to $2.50 per $100 of assessed valuation and by City Charter to $1.50 per $100 valuation. The combined tax rate to finance general governmental service and debt service for the year ended September 30, 1994 was $.57 per $100 of assessed valuation. Taxes are due on receipt of the tax bill. Current tax collections for the year ended September 30, 1994 were 98.69% of the tax levy. Property taxes receivable at September 30, 1994 were $281,434. Property taxes levied for 1994 have been recorded as receivables, net of estimated uncollectibles. The net receivables collected during 1994 and those considered "available" at September 30, 1994 (i.e., property taxes collected within 60 days of year end) have been recognized as revenues in 1994. Prior year levies were recorded using these same principles. The remaining receivables have been reflected as deferred revenue ($159,166 at September 30, 1994). The appraisal of property within the City is the responsibility of a county-wide Appraisal District as required by legislation passed by the Texas Legislature. The Appraisal District is required under such legislation to assess all property within the Appraisal District on the basis of 100% of its appraised value and is prohibited from applying any assessment ratios. The value of property within the Appraisal District must be reviewed every three years; however, the City may, at its own expense, require annual reviews of appraised values. The City may challenge appraised values established by the Appraisal District through various appeals and, if necessary, legal action. (4) Special Assessments Certain street and drainage construction projects are financed partially by special assessments. Such projects are recorded in the Capital Projects Fund because they benefit the entire community and are financed primarily by general obligation bond proceeds. Special assessments are levied against properties deemed to be specifically benefited by the improvements. Costs of the projects are estimated and property owners are charged a proportionate share. 27 (Continued) CITY OF NORTH RICHLAND HILLS, TEXAS Notes to General Purpose Financial Statements Special assessments are recorded on the levy date and recognized as revenue when they become measurable and available (i.e., estimated to be collected within one year). Assessments which are not "available" at September 30, 1994 of $545,916 have been reflected as deferred revenue in the Capital Projects Fund. (5) Fixed Assets A summary of changes in general fixed assets follows: Balance Balance September 30, Completed September 30, 1m Additions Retirements Construction 1994 Land $ 6,951,001 215,728 7,166,729 Buildings and improvements 11,095,668 23,847 11,119,515 Improvements other than buildings 40,123,841 14,913 4,011,655 44,150,409 Machinery and equipment 7,476,578 790,760 218,413 8,048,925 Construction in progress 6,457,236 6,392,886 (4,011, 655) 8,838,467 $ 72,104,324 7,438, 134 218,413 79,324,045 Construction in progress at September 30, 1994 is composed of the following: Expended to September 30, 1994 Committed 8,838,467 8,834,023 Project Authorization Street, drainage and park improvements $ 17,672,490 The "project authorization" and "committed" figures above are based on open contracts at September 30, 1994. No future financing is anticipated to complete the above projects. A summary of proprietary fund property, plant and equipment at September 30, 1994 follows: Land Land improvements Building and improvements Utility plant in service Machinery and equipment Construction in progress Enterprise Funds $ 2, 107,464 2,845,853 3,238, 132 53,294,040 1,784,624 3,152,906 66,423,019 (13,456,347) $ 52,966,672 Less accumulated depreciation 28 Internal Service Funds 385,957 1,449,825 1,835,782 (612,716) 1,223,066 (Continued) CITY OF NORTH RICHLAND HILLS, TEXAS Notes to General Purpose Financial Statements At September 30, 1994 the City was committed under utility construction contracts for approximately $2,600,000. (6) Operatin~ Leases The City is committed under various leases for golf course equipment. These leases are considered for accounting purposes to be operating leases. Lease expense for the year ended September 30, 1994 amounted to approximately $71,000. Future minimum lease payments for these leases are as follows: 1995 1996 1997 $ 62,907 59,209 52,811 $ 174,927 (7) Lon~-term Debt The following is a summary of long-term debt transactions of the City for the year ended September 30, 1994 (in thousands of dollars): Amortization of discount on capital September 30, appreciation September 30, 1m. Additions ~ ~ Retirements ~ General Long-term Debt Account Group: General Obligation $ 37,272 Bonds 312 (2,485) 35,099 Sales Tax Revenue Bonds 7,500 3,895 (210) 11, 185 Certificates of Obligation 2,085 (235) 1,850 Accrued Vacation Pay (note 1(1)) 424 101 525 General Obligation 673 Notes Payable (112) 561 Arbitrage Rebate (note 15) --11 - - ill) - - - - - - General Long- $ 48,001 term Debt Total 3,895 312 54 (3,042 ) 49,220 Enterprise Funds: 16,232 Revenue Bonds 298 (1,195) 15,335 Golf Course Obligations 4,870 4,870 Golf Course Note Payable and Contractual Obligation -.---1.l ~ - -1!! ) ~ - Enterprise Funds $ 21,113 Total 180 298 (1,206) 20,385 - (Continued) 29 CITY OF NORTH RICHLAND HILLS, TEXAS Notes to General Purpose Financial Statements Long-term debt at September 30, 1994 consisted of the following: General Obligation Bonds: $13,120,000 Series 1985 Refunding and Improvement Serial Bonds, $ 1,250,000 due February 15, 1995; interest at 7.90% to 8.00% $3,720,000 Series 1985 Refunding and Improvement Capital Appreciation Bonds discounted at 8.90% to 9.25%, due in annual installments of $620,000 beginning February 15,2000 through February 15, 2005; net of unamortized discount of $1,877,408 $6,000,000 Series 1986 Serial Bonds due in annual installments of $215,000 to $230,000 through February 15, 1996; interest at 7.4% to 7.5% $8,000,000 Series 1987 Serial Bonds due in annual installments of $285,000 to $330,000 through February 15, 1997; interest at 7.0% to 10.0% $5,000,000 Series 1989 Serial Bonds due in annual installments of $165,000 to $230,000 through February 15, 1999; interest at 9.35% to 10.0% $2,735,000 Series 1991 Serial Bonds due in annual installments of $90,000 to $225,000 through February 15,2011; interest at 6.0% to 9.0% $17,450,000 Series 1992 Refunding Serial Bonds due in annual installments of $400,000 to $1,800,000 through February 15,2005; interest at 4.65% to 6.30% $5,440,000 Series 1992 Refunding Capital Appreciation Bonds discounted at 6.8% to 6.9%, due in annual installments of $465,000 to $1,865,000 beginning February 15,2006 through February 15,2009; net of unamortized discount of $3,083,473 $4,400,000 Series B 1992-A Serial Bonds due in annual installments of $140,000 to $385,000 through February 15,2012; interest at 4.65% to 6.75% $3,865,000 Series 1993 Serial Bonds due in annual installments of $120,000 to $305,000 through February 15,2013; interest at 4.25% to 7.25% 30 $ 1,250,000 1,842,592 445,000 920,000 990,000 2,580,000 16,695,000 2,356,527 4,265,000 3,755,000 $ 35,099,119 (Continued) CITY OF NORTH RICHLAND HILLS, TEXAS Notes to General Purpose Financial Statements Sales Tax Revenue Bonds: $7,500,000 Series 1992 Sales Tax Revenue Bonds due in annual installments of $225,000 to $630,000 through September 1,2012; interest at 5.75% to 8.60% $3,895,000 Series 1994 Sales Tax Revenue Bonds due in annual installments of $80,000 to $330,000 beginning September 1, 1995 through September 1,2013; interest at 5.30% to 8.30% $ 7,290,000 3,895,000 $ 11,185,000 Certificates of Obligation: $900,000 Series 1992 Revenue Certificates of Obligation due in annual installments of $25,000 to $80,000 through February 15,2012; interest at 4.65% to 6.75% $ 875,000 $1,185,000 Series 1993 Revenue Certificates of Obligation due in annual installments of $225,000 to $265,000 through February 15, 1998; interest at 3.5% to 4.50% 975,000 $ 1,850,000 General Obligation Notes Payable: $297,000 note payable, secured by drug seizure monies, due December 1994; interest at 7.28% $ 34,268 $615,000 note payable, secured by future ad valorem tax revenues, due on monthly installments of $7,043, including interest at 6.69%, through October, 2002 526,572 560,840 $ Revenue Bonds: $8,025,000 Series 1989 Waterworks and Sewer System Improvement and Refunding Revenue Bonds due in annual installments of $605,000 to $915,000 through September 1,2001; interest at 7.125% to 7.375% $4,070,000 Series 1989 Waterworks and Sewer System Improvement and Refunding Capital Appreciation Bonds discounted at 7.60% to 7.75%, due in annual installments of $395,000 to $985,000 beginning September 1,2002 through September 1,2008; net of unamortized discount of $2,154,162 $ 5,245,000 3"- CITY OF NORTH RICHLAND IDLLS, TEXAS Notes to General Purpose Financial Statements Sales Tax Revenue Bonds: $7,500,000 Series 1992 Sales Tax Revenue Bonds due in annual installments of $225,000 to $630,000 through September 1,2012; interest at 5.75% to 8.60% $3,895,000 Series 1994 Sales Tax Revenue Bonds due in annual installments of $80,000 to $330,000 beginning September 1, 1995 through September 1,2013; interest at 5.30% to 8.30% Certificates of Obligation: $900,000 Series 1992 Revenue Certificates of Obligation due in annual installments of $25,000 to $80,000 through February 15,2012; interest at 4.65% to 6.75% $1,185,000 Series 1993 Revenue Certificates of Obligation due in annual installments of $225,000 to $265,000 through February 15, 1998; interest at 3.5% to 4.50% General Obligation Notes Payable: $297,000 note payable, secured by drug seizure monies, due December 1994; interest at 7.28% $615,000 note payable, secured by future ad valorem tax revenues, due on monthly installments of $7,043, including interest at 6.69%, through October, 2002 Revenue Bonds: $8,025,000 Series 1989 Waterworks and Sewer System Improvement and Refunding Revenue Bonds due in annual installments of $605,000 to $915,000 through September 1,2001; interest at 7.125% to 7.375% $4,070,000 Series 1989 Waterworks and Sewer System Improvement and Refunding Capital Appreciation Bonds discounted at 7.60% to 7.75%, due in annual installments of $395,000 to $985,000 beginning September 1,2002 through September 1,2008; net of unamortized discount of $2, 154,162 31 $ 7,290,000 3,895,000 $ 11,185,000 $ 875,000 975,000 $ 1,850,000 $ 34,268 $ 526,572 560,840 $ 5,245,000 1,915,838 (Continued) CITY OF NORTH RICHLAND HILLS, TEXAS Notes to General Purpose Financial Statements $3,500,000 Series 1989-A Waterworks and Sewer System Refunding Revenue Bonds due in annual installments of $260,000 to $400,000 through September 1,2001; interest at 7.125% to 7.375% $1,730,000 Series 1989-A Waterworks and Sewer System Refunding Capital Appreciation Bonds discounted at 7.60% to 7.75%, due in annual installments of $165,000 to $425,000 beginning September 1,2002 through September 1,2008; net of unamortized discount of $913,928 $5,715,000 Series 1989-B Waterworks and Sewer System Refunding Revenue Bonds due in annual installments of $420,000 to $620,000 through September 1,2001; interest at 6.75% to 6.90% $3,020,000 Series 1989-B Waterworks and Sewer System Refunding Capital Appreciation Bonds discounted at 7.10% to 7.20%, due in annual installments of $270,000 to $665,000 beginning September 1,2002 through September 1,2008; net of unamortized discount of $1,536,352 Golf Course Obligations: $4,870,000 Series 1991 Tax and Golf Course Revenue Refunding Bonds due in annual installments of $185,000 to $470,000 beginning September 1,1996 through September 1,2011; interest at 5.90% to 7.00% Golf Course Contractual Obligation: $180,000 Series 1994 Contractual Obligation due in annual installments of $35,000 to $40,000 beginning February 15, 1995 through February 15, 1999; interest at 4.75% to 6.70% 32 2,280,000 816,072 3,595,000 1,483,648 $ 15,335,558 $ 4,870,000 $ 180,000 (Continued) CITY OF NORTH RICHLAND IDLLS, TEXAS Notes to General Purpose Financial Statements The future annual requirements to amortize all debt outstanding as of September 30, 1994, follows: General Golf Year Sales Certificate Obligation Golf Course ending General Tax of Notes Course Contractual September 30 Oblj¡ration Revenue Obli~ation ~ Revenue Obli~ations Obli~ation lliill 1995 $ 4,474,586 1,069.237 334.686 120,029 2,080,585 324,820 44.399 8,448.342 1996 4,313,531 1,066,665 339,489 84,514 2,075,605 509,820 42,054 8.431.678 1997 4,266,024 1,055.220 344.780 84,514 2.073.283 508,905 39,722 8.372.448 1998 3.851,852 1,057,070 348,901 84.514 2,079,208 507,205 37,731 7,966.481 1999 3,415,551 1,045,940 82,726 84.514 2,076.805 509,700 40.950 7.256.186 2000-2004 17,214,101 5,099,149 414,365 260.585 9,636,983 2,542,370 35.167.553 2005-2009 12,867,472 5,082,535 415,132 3,631, 130 2,546,875 24,543.144 2010-2013 2,915.161 3.417.182 248,366 - 1.011 950 - 7,592 659 53,318.278 18,892,998 2.528,445 718.670 23,653,599 8,461,645 204,856 107,778.491 Less applicable interest 18,219.159 7.707998 678,445 ill.8JQ 8,318.041 3,591.645 ~ 38 697 974 $ 35,099,119 1l,I85,OOO 1,850,000 560.840 15,335,558 4,870.000 180.000 69,080,517 Authorized unissued debt at September 30, 1994 consisted of general obligation bonds designated as follows: Street improvements Drainage Public Safety Facilities $ 20,000, 000 5,865,000 1, 675, 000 $ 27,540,000 The ordinances authorizing the issuance of Waterworks and Sewer System Revenue Bonds created the Interest and Sinking Fund and Reserve Fund. The gross revenues of the waterworks and sewer system, after deduction of reasonable expenses of operations and maintenance, are pledged to such funds in amounts equal to the total annual principal and interest requirements of the bonds and amounts required to maintain the Reserve Fund. At September 30, 1994, the City was in compliance with these requirements. In prior years, the City defeased certain general obligation bonds, revenue bonds and golf course obligations by placing the proceeds of the new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the City's financial statements. At September 30, 1994. $33,565,000 of bonds and obligations outstanding are considered defeased. (Continued) 33 -,.- CITY OF NORTH RICHLAND HILLS, TEXAS Notes to General Purpose Financial Statements (8) Employees' Retirement System (a) Plan Description The City provides pension benefits for all of its full-time employees through a nontraditional, joint contributory, defined contribution plan in the state-wide Texas Municipal Retirement System (TMRS), one of over 636 administered by TMRS, an agent multiple-employer public employee retirement system. It is the opinion of the TMRS management that plans in TMRS are substantially defined contribution plans, but they have elected to provide additional voluntary disclosure to help foster a better understanding of some of the nontraditional characteristics of the plan. Benefits depend upon the sum of the employee's contributions to the plan, with interest, and the City-financed monetary credits, with interest. At the date the plan began, the City granted monetary credits for service rendered before the plan began of a theoretical amount equal to two times what would have been contributed by the employee, with interest, prior to establishment of the plan. Monetary credits for service since the plan began are a percent (200%) of the employee's accumulated contributions. In addition, the City can grant as often as annually another type of monetary credit referred to as an updated service credit which is a theoretical amount which, when added to the employee's accumulated contributions and the monetary credits for service since the plan began, would be the total monetary credits and employee contributions accumulated with interest if the current employee contribution rate and City matching percent had always been in existence and if the employee's salary had always been the average of his salary in the last three years. At retirement, the benefit is calculated as if the sum of the employee's accumulated contri butions with interest and the employer-financed monetary credits with interest were used to purchase an annuity. Members can retire at ages 60 and above with 10 or more years of service or with 25 years of service regardless of age. The plan also provides death and disability benefits. A member is vested after 10 years, but he must leave his accumulated contributions in the plan. If a member withdraws his own money, he is not entitled to the employer-financed monetary credits, even if he was vested. The plan provisions are adopted by the City Council, within the options available in the state statutes governing TMRS and within the actuarial constraints also in the statutes. (b) Contributions The contribution rate for employees is 7%, and the City matching percent is currently 2 to 1. Under the state law governing TMRS, the City contribution rate is annually determined by the actuary. Part of the City contribution rate (the normal cost) is to fund the currently accruing monetary credits, with the other part (the prior service contribution rate) calculated as the level percent of payroll needed to amortize the unfunded actuarial liability over the remainder of the plan's 25-year amortization period. When the City periodically adopts updated service credits and increases in annuities in effect, the increased unfunded actuarial liability is to be amortized over a new 25-year period. Currently, the unfunded actuarial liability is being amortized over the 25-year period which began January, 1994. The unit credit actuarial cost method is used for determining the City contribution rate. Contributions are made (Continued) 34 CITY OF NORTH RICHLAND HILLS, TEXAS Notes to General Purpose Financial Statements monthly by both employees and the City. Since the City needs to know its contribution rate in advance to budget for it, there is a one-year lag between the actuarial valuation that is the basis for the rate and the calendar year when the rate goes into effect. The City's total payroll in fiscal year 1994 was $12,641,287, and the City's contributions were based on a covered payroll of $11,037,223. Both the City and the covered employees made the required contributions, amounting to $1,260,399 (9.80% of covered payroll for the months in calendar year 1993, 8.04% normal cost plus 1.76% to amortize the unfunded actuarial liability and 10.20% for the months in calendar year 1994,8.34% normal cost plus 1.86% to amortize the unfunded actuarial liability) for the City and $873,671 (7%) for the employees. The required contribution represents $1,033,527 of normal cost and $226,872 to amortize the unfunded actuarial liability . The City adopted changes in the plan since the previous actuarial valuation, which had the effect of increasing the City's contribution rate for 1994 by .05% of covered payroll. (c) Fundin~ Status and Pro~ress Even though the substance of the City's plan is not to provide a defined benefit in any form, some additional disclosure is appropriate due to the nontraditional nature of the defined contribution plan which had an initial unfunded pension benefit obligation due to the monetary credits granted by the City for services rendered before the plan began and which can have additions to the unfunded pension benefit obligation through the periodic adoption of increases in benefit credits and benefits. Statement No.5 of the Governmental Accounting Standards Board (GASB 5) defines pension benefit obligation as a standardized disclosure measure of the actuarial present value of pension benefits, adjusted for the effects of projected salary increases, estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the funding status of public employee pension plans, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among public employee pension plans. The City's pension benefit obligation shown below is similar in nature to the standardized disclosure measure required by GASB 5 for defined benefit plans except that there is no need to project salary increases since the benefit credits earned for service to date are not dependent upon future salaries. The calculations were made as part of the annual actuarial valuation as of December 31, 1993. Because of the money-purchase nature of the plan, the interest rate assumption, currently 8.5% per year, does not have as much impact on the results as it does for a defined benefit plan. Market value of assets is not determined for each city's plan, but the market value of assets for TMRS as a whole was 118% of book value as of December 31, 1993. (Continued) 35 CITY OF NORTH RICHLAND HILLS, TEXAS Notes to General Purpose Financial Statements Pension Benefit Obli~ation Annuitants currently receiving benefits Terminated employees Current employees: Accumulated employee contributions, including allocated invested earnings Employer-financed vested Employer-financed non vested Total pension benefit obligation Net Assets Available for Benefits. at Book Value $ 789,351 1,194,049 7,556,930 11,585,459 3, 196, 198 24,321,987 Unfunded Pension Benefit Obli~ation 17,588,764 $ 6,733,223 The book value of assets is amortized cost for bonds and original cost for short-tenn securities and stocks. The actuarial assumptions used to compute the actuarially determined City contribution rate are the same as those used to compute the pension benefit obligation. The amounts above reflect the adoption of changes in the plan since the previous actuarial valuation, which had the effect of increasing the pension benefit obligation by $102,071. (d) Trend Information Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Additional trend information relating to the City may be found in the required supplementary infonnation in the City's Comprehensive Annual Financial Report. Trend information for the City based upon actuarial computations for the years ended December 31, 1993, 1992 and 1991 is as follows: 1991 1992 1993 Available plan assets as a percentage of the pension benefit obligation Unfunded pension benefit obligation as a percentage of annual covered payroll 77% 79% 72% 32% 36% 61% Employer contribution as a percentage of annual covered payroll 10% 11% 11% - - The City's contributions to the plan were in accordance with actuarially determined requirements for 1991 through 1993. Ten-year trend information for TMRS as a whole may be found in the TMRS annual financial report. (Continued) 36 r: CITY OF NORTH RICHLAND HILLS, TEXAS Notes to General Purpose Financial Statements (9) Water and Sewer Contracts The City has several individual contracts with the City of Fort Worth (Fort Worth) and the Trinity River Authority of Texas (TRA) for the purchase of treated water and for the transportation, treatment and disposal of sanitary sewage and other waste. The initial terms of the contracts range from twenty-one to forty-eight years and expire at various dates from 1997 through 2023. While the provisions of each of the contracts vary, each contract basically requires the City to pay varying amounts based on the costs associated with water purchased and sewage transported and/or treated and disposed of. The cost includes the City's proportionate share of Fort Worth's and TRA's operating and maintenance expenses, related debt service costs plus certain other miscellaneous charges. Purchases of treated water and charges for the transportation, treatment and disposal of sewage and other wastes during 1994 amounted to approximately $5,173,000 and $2,760,000, respectively. (10) Contributed Capital The following is a summary of changes 10 contributed capital for the year ended September 30, 1994: Balance at beginning of year Contributions from developers Balance at end of year Enterprise Funds $ 21,505,090 945.000 $ 22,450,090 Internal Service Funds 1,391,462 1 ,391 ,462 (11) Commitments and Contingencies The City has participated in a number of State and Federally assisted grant programs. These programs are subject to financial and compliance audits by the grantors or their representatives, the purpose of which is to insure compliance with conditions precedent to the granting of funds. City management believes that any liability for reimbursement which may arise as the result of these audits would not materially affect the City's financial position. 37 (Continued) The City is defendant in several lawsuits, primarily for worker's compensation and general liability claims. City management believes that any ultimate liability on these suits will not materially affect the City's financial position. The City is self-insured for substantially all claims except for fire coverage on buildings and contents and life insurance coverage. Under its current stop loss policy, the City pays medical claims up to $100,000 per individual per year and/or $2,044,000 per year in the aggregate. The Self-Insurance (Internal Service) Fund covers medical expenses, worker's compensation, automobile liability and general liability claims. The Self-Insurance Fund charges the other funds premiums to cover such claims (note 1(0)). The Self-Insurance Fund's accrued liabilities at September 30, 1994 include an estimate of the eventual loss on claims arising prior to year end, including claims incurred but not yet reported. CITY OF NORTH RICHLAND HILLS, TEXAS Notes to General Purpose Financial Statements The City has a contract with a management company for operations of the city-owned public golf course. The contract expires January 1998, however, the City has the option of canceling the contract anytime after January 1996. In addition to monthly management fees, a contingent management fee is owed if the golf course revenues exceed a certain amount that varies from year to year. Contingent management fees incurred for 1994 were approximately $55,000. Total management fees for operations were approximately $135,000 for the year ended September 30, 1994. (12) Deferred Compensation Plan The City offers its employees a deferred compensation plan which falls under Internal Revenue Code Section 457. Virtually all employees are eligible to participate in the plan. The deferred compensation plan allows the deferral of individual Federal income taxes until funds are withdrawn. Funds may be withdrawn at termination, retirement, death or unforeseeable emergency. Employees may contribute a maximum of 33.33% of salary or $7,500, whichever is less. All amounts deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are legally the property of the City (until paid or made available to the participants), subject only to the claims of the City's general creditors. Participant's rights under the plan are equal to those of the general creditor's of the City in an amount equal to the fair value of the deferred amount for each participant. The City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. Plan assets have been invested in a mutual fund (note 2). (13) Segment Information - Enteq>rise Funds The City maintains two enterprise funds which are intended to be self-supporting through user fees charged for services rendered. The Water and Sewer Fund provides water and sewer services to residents of the City and certain nonresidents. The Golf Course Fund accounts for the operations of the City's public golf course. Financial segment information as of and for the year ended September 30, 1994 is as follows: Water Golf and Sewer Course Total Operating revenues $ 18,023,807 2,008,893 20,032,700 Depreciation expense 1,131,061 284,018 1,415,079 Operating income 2,676,447 230,844 2,907,291 Operating transfers out (1, 133,731) (1,133,731 ) Net income (loss) 700,311 (152,251) 548,060 Capital contributions 945,000 945,000 Property, plant and equipment: Additions 3,098,805 289,399 3,388,204 Retirements 178,927 96,588 275,515 Working capital (deficit) 818,327 (188,690) 629,637 Total assets 58,465,302 6,981,011 65,446,313 Bonds/obligations payable 15,335,558 5,050,000 20,385,558 Retained earnings (accumulated deficit) 19,832,996 (1,162,837) 18,670,159 Total fund equity 40,400,714 719,535 41,120,249 (Continued) 38 CITY OF NORTH RICHLAND HILLS, TEXAS Notes to General Purpose Financial Statements (14) Interfund Balances At September 30, 1994, interfund balances consisted of the following: Due from Due to Advances to Advances from other funds other funds other funds other funds Enterprise Funds: Water and Sewer Fund $ 11,759 492,775 Golf Course Fund 33,371 893,043 General Fund 21.612 400.268 $ 33,371 33,371 893,043 893,043 Due to and due from other funds are the short term portion of the advances to and advances from other funds. Interest on interfund advances approximated $48,000 for 1994. Such interest is included in interest income and interest expense in the accompanying general purpose financial statements. Interest is charged on interfund advances at variable rates that approximate the City's yields on certificates of deposit and investments (4% in 1994). (15) Excess of Expenditures Over Appropriations For the year ended September 30, 1994, expenditures exceeded appropriations in the Sales Tax Revenue Debt Service Fund by $60,190. 39 APPENDIX C FORM OF BOND COUNSEL'S OPINION THIS PAGE LEFT BLANK INTENTIONALLY FULBRIGHT & ~AWORSKI L. L. P. TELEPHONE: 214/855-8000 FACSIMILE: 214/855-8200 A REGISTERED LIMITED LIABILITY PARTNERSHIP 2200 Ross AVENUE SUITE 2800 DALLAS, TEXAS 75201 HOUSTON WASHINGTON. D.C. AUSTIN SAN ANTON 10 DALLAS NEW YORK LOS ANGELES LONDON ZURICH HONG KONG WRITER'S DIRECT DIAL NUMBER: 214/855-8013 IN REGARD to the authorization and issuance of the "City of North Richland Hills, Texas, General Obligation Bonds, Series 1995" (the "Bonds"), dated April 1, 1995 (the "Bond Date"), in the principal amount of $6,000,000, we have examined into the legality and validity of the issuance thereof by the City of North Richland Hills, Texas (the "City"), which Bonds are issuable in fully registered form only, in denominations of $5,000 or any integral multiple thereof (within a maturity), have stated maturities of February 15, 1997 through February 15, 2015, unless redeemed prior to maturity in accordance with the terms stated on the Bonds, and bear interest on the unpaid principal amount from the Bond Date at the rates per annum stated in the ordinance authorizing the issuance of the Bonds (the "Ordinance"), such interest being payable on February 15 and August 15 in each year, commencing February 15, 1996, to the registered owners thereof shown on the registration books of the Paying AgentlRegistrar on the Record Date (stated on the face of the Bonds). WE HAVE SERVED AS BOND COUNSEL for the City solely to pass upon the legality and validity of the issuance of the Bonds under the Constitution and laws of the State of Texas, and with respect to the exclusion of the interest on the Bonds from gross income for federal income tax purposes and none other. We have not been requested to investigate or verify, and have not independently investigated or verified, any records, data or other material relating to the financial condition or capabilities of the City. Our examinations into the legality and validity of the Bonds included a review of the applicable and pertinent provisions of the Constitution and laws of the State of Texas, a transcript of certified proceedings of the City relating to the authorization and issuance of the Bonds, including the Ordinance, customary certifications and opinions of officials of the City and other pertinent showings, and an examination of the Bond executed and delivered initially by the City, which we found to be in due form and properly executed. BASED ON OUR EXAMINATIONS, IT IS OUR OPINION that, under applicable law of the United States of America and the State of Texas now in force and effect that: 1. The Bonds have been duly authorized by the City, and the Bonds issued in compliance with the provisions of the Ordinance are valid, legally binding and enforceable obligations of the City, payable fróm the proceeds of an ad valorem tax levied, within the limitations prescribed by law, upon all taxable property in the City, except to the extent that the 0237732 Page 2 of Legal Opinion of Fulbright & Jaworski L.L.P. Re: $6,000,000 "City of North Richland tIills, Texas, General Obligation Bonds, Series 1995", dated April 1, 1995 enforceability thereof may be affected by bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting creditors' rights or the exercise of judicial discretion in accordance with general principles of equity; and 2. Assuming continuing compliance after the date hereof by the City with the provisions of the Ordinance and in reliance upon representations and certifications of the City made in a certificate of even date herewith pertaining to the use, expenditure, and investment of the proceeds of the Bonds, interest on the Bonds for federal income tax purposes (1) will be excludable from gross income, as defined in section 61 of the Internal Revenue Code of 1986, as amended to the date hereof (the "Code"), of the owners thereof pursuant to section 103 of such Code, existing regulations, published rulings, and court decisions thereunder, and (2) will not be included in computing the alternative minimum taxable income of individuals or, except as hereinafter described, corporations. Interest on all tax-exempt obligations, such as the Bonds, owned by a corporation will be included in such corporation's adjusted current earnings for tax years beginning after 1989 for purposes of calculating the alternative minimum taxable income of such corporations, other than an S corporation, a qualified mutual fund, a real estate mortgage investment conduit (REMIC), or a real estate investment trust (REIT). A corporation's alternative minimum taxable income is the basis on which the alternative minimum tax imposed by section 55 of the Code and the environmental tax imposed by section 59A of the Code will be computed. WE EXPRESS NO OPINION with respect to any other federal, state, or local tax consequences under present law or any proposed legislation resulting from the receipt or accrual of interest on, or the acquisition or disposition of, the Bonds. Ownership of tax-exempt obligations such as the Bonds may result in collateral federal tax consequences to, among others, financial institutions, property and casualty insurance companies, life insurance companies, certain foreign corporations doing business in the United States, S corporations with subchapter C earnings and profits, individual recipients of Social Security or Railroad Retirement Benefits, and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry, or who have paid or incurred certain expenses allocable to, tax-exempt obligations. EHE:dfc 0237732 THIS PAGE LEFT BLANK INTENTIONALLY NOTICE OF SALE AND BIDDING INSTRUCTIONS ON $6,000,000 CITY OF NORTH RICHLAND HILLS, TEXAS (Tarrant County) GENERAL OBLIGATION BONDS, SERIES 1995 Sealed Bids Due Monday, April 10, 1995, at 4:00 PM, COT THE CITY WILL DESIGNATE THE BONDS AS "OUALIFIED TAX-EXEMPT OBLIGATIONS" FOR FINANCIAL INSTITUTIONS. THE SALE Bonds OlTered for Sale at Competitive Bidding The City of North Richland Hills, Texas (the "City") is offering for sale its $6,000,000 General Obligation Bonds, Series 1995 (the "Bonds"). Address of Bids Sealed bids, plainly marked "Bid for Bonds", should be addressed to "Mayor and City Council, City of North Richland Hills, Texas", and delivered to the office of the Assistant City Manager at the City Hall, 7301 N. E. Loop 820, North Richland Hills, Texas, prior to 4:00 PM, COT, on the date of the bid opening. All bids must be submitted on the Official Bid Fonn, without alteration or interlineation. Place and Time of Bid Opening The bids for the Bonds will be publicly opened and read in the offices of the Assistant City Manager of Finance at 4:00 PM, COT, Monday, April 10, 1995. Award of the Bonds The City Council will take action to award the Bonds (or reject all bids) at a meeting scheduled to convene at 7:30 PM, COT, on the date of the bid opening, and adopt an ordinance authorizing the Bonds and approving the Official Statement (the "Ordinance"). THE BONDS Description The Bonds will be dated April 1, 1995 (the "Bond Date"), and interest will be due on February 15, 1996, and each August 15 and February 15 thereafter until the earlier of maturity or prior redemption. The Bonds will be issued only in fully registered fonn in any integral multiple of $5,000 for anyone maturity. The Bonds will mature on February 15 in each year as follows: MATURITY SCHEDULE Principal Principal Principal Year Amount Year Amount Year Amount 1997 $150,000 2003 $300,000 2010 $360,000 1998 150,000 2004 300,000 2011 360,000 1999 300,000 2005 300,000 2012 360,000 2000 300,000 2006 360,000 2013 360,000 2001 300,000 2007 360,000 2014 360,000 2002 300,000 2008 360,000 2015 360,000 2009 360,000 - i - ~_._~-,._~-- _._-_._~_..-. Book-Entry-Only System The City intends to utilize the Book-Entry-Only System of The Depository Trust Company ("DTC"). See "Bond Infonnation _ Book-Entry-Only System" in the Official Statement. Redemption The City reserves the right, at its option, to redeem Bonds having stated maturities on and after February 15, 2006, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2005, or any date thereafter, at the par value thereof plus accrued interest to the date fixed for redemption. Paying Agent/Registrar The initial Paying Agent/Registrar shall be. Bank One, Texas N.A., Fort Worth, Texas (see "Bond Infonnation - Paying Agent/Registrar" in the Official Statement). Source of Payment The Bonds are direct and voted general obligations of the City of North Richland Hills, Texas, payable out of the receipts from an ad valorem tax levied, within the limits prescribed by law, on all taxable property located within the City, as provided in the Ordinance. Further details regarding the Bonds are set forth in the Official Statement. CONDITIONS OF THE SALE Type of Bids and Interest Rates The Bonds will be sold in one block on an "All or None" basis, and at a price of not less than their par value plus accrued interest from the date of the Bonds to the date of delivery of the Bonds. Bidders are invited to name the rate(s) of interest to be borne by the Bonds, provided that each rate bid must be in a multiple of 1/8 of 1 % or 1/20 of 1 % and the net effective interest rate must not exceed 15 %. The highest rate bid may not exceed the lowest rate bid by more than 2 % in rate. No limitation is imposed upon bidders as to the number of rates or changes which may be used. All Bonds of one maturity must bear one and the same rate. No bids involving supplemental interest rates will be considered. Each bidder shall state in the bid the total interest cost in dollars and the effective interest rate detennined thereby (calculated in the manner prescribed by Article 717k-2, VATCS), which shall be considered infonnative only and not as a part of the bid. Basis for Award For the purpose of awarding the sale of the Bonds, the interest cost of each bid will be computed by detennining, at the rate or rates specified therein, the total dollar cost of all interest on the Bonds from the Bond Date to their respective maturities, using the table of Bond Years herein, and deducting therefrom the premium bid, if any (the "Net Interest Cost Calculation"). Subject to the City's right to reject any or all bids and to waive any irregularities except time of filing, the Bonds will be awarded to the bidder or syndicate account manager whose name first appears on the Official Bid Fonn (the "Purchaser") whose bid, based on the Net Interest Cost Calculation, produces the lowest net effective interest cost to the City. Good Faith Deposit A Good Faith Deposit, payable to the "City of North Richland Hills, Texas", in the amount of $120,000.00, is required. Such Good Faith Deposit shall be a bank cashier's check or certified check, which is to be retained uncashed by the City pending the Purchaser's compliance with the tenns of the bid and the Notice of Sale and Bidding Instructions, The Good Faith Deposit may accompany the Official Bid Fonn or it may be submitted separately. If submitted separately, it shall be made available to the City prior to the opening of the bids, and shall be accompanied by instructions from the bank on which drawn which authorize its use as a Good Faith Deposit by the Purchaser who shall be named in such instructions, The Good Faith Deposit of the Purchaser will be returned to the Purchaser upon payment for the Bonds. No interest will be allowed on the Good Faith Deposit. In the event the Purchaser should fail or refuse to take up and pay for the Bonds in aècordance with the bid, then said check shall be cashed and accepted by the City as full and complete liquidated damages. The checks accompanying bids other than the winning bid will be returned immediately after the bids are opened, and an award of the Bonds has been made, - 11 - DELIVERY OF THE BONDS AND ACCOMPANYING DOCUMENTS CUSIP Numbers It is anticipated that CUSIP identification numbers will appear on the Bonds, but neither the failure to print or type such number on any Bond nor any error with respect thereto shall constitute cause for a failure or refusal by the Purchaser to accept delivery of and pay for the Bonds in accordance with the tenns of this Notice of Sale and Bidding Instructions and the tenns of the Official Bid Fonn. All expenses in relation to the printing or typing of CUSIP numbers on the Bonds shall be paid by the City; provided, however, that the CUSIP Service Bureau charge for the assignment of the numbers shall be the responsibility of and shall be paid for by the Purchaser. Delivery of Bond Initial Delivery will be accomplished by the issuance of one Initial Bond (also called the "Bond" or "Bonds"), either in typed or printed fonn, in the aggregate principal amount of $6,000,000, payable in stated installments to the Purchaser, signed by the Mayor and City Secretary, approved by the Attorney General, and registered and manuaIly signed by the Comptroller of Public Accounts. Upon delivery of the Initial Bond, it shall be immediately cancelled and one definitive Bond for each maturity will be registered and delivered only to Cede & Co. and deposited with DTC in connection with DTC's Book-Bntry-Only System. Initial Delivery will be at the principal office of the Paying Agent/Registrar. Payment for the Bonds must be made in immediately available funds for unconditional credit to the City, or as otherwise directed by the City. The Purchaser will be given six business days' notice of the time fixed for delivery of the Bonds. It is anticipated that delivery of the Bond(s) can be made on or about May 16, 1995, and it is understood and agreed that the Purchaser will accept delivery and make payment for the Bonds by 10:00 AM, CDT, on May 16, 1995, or thereafter on the date the Bond is tendered for delivery, up to and including May 30, 1995. If for any reason the City is unable to make delivery on or before May 30, 1995, the City shaIl immediately contact the Purchaser and offer to allow the Purchaser to extend its offer for an additional thirty days. If the Purchaser does not elect to extend its offer within six days thereafter, then its Good Faith Deposit will be returned, and both the City and the Purchaser shall be relieved of any further obligation. In no event shall the City be liable for any damages by reason of its failure to deliver the Bonds, provided such failure is due to circumstances beyond the City's reasonable control. Conditions to Delivery The obligation of the Purchaser to take up and pay for the Bonds is subject to the Purchaser's receipt of (a) the legal opinion of Fulbright & Jaworski L.L.P., DaIlas, Texas, Bond Counsel for the City ("Bond Counsel"), (b) the no-litigation certificate, and (c) the certification as to the Official Statement, all as further described in the Official Statement. In order to provide the City with infonnation required to enable it to comply with certain conditions of the Internal Revenue Code of 1986 relating to the exemption of interest on the Bonds from the gross income of their owners, the Purchaser will be required to complete, execute, and deliver to the City (on or before the 6th business day prior to the delivery of the Bonds) a certification as to their "issue price" substantially in the fonn and to the effect attached hereto or accompanying this Notice of Sale and Bidding Instructions. In the event the successful bidder will not reoffer the Bonds for sale, such certificate may be modified in a manner approved by the City, In no event will the City fail to deliver the Bonds as a result of the Initial Purchaser's inability to sell a substantial amount of the Bonds at a particular price prior to delivery. Each bidder, by submitting its bid, agrees to complete, execute, and deliver such a certificate by the date of delivery of the Bonds, if its bid is accepted by the City. It will be the responsibility of the Purchaser to institute such syndicate reporting requirements to make such investigation, or otherwise to ascertain the facts necessary to enable it to make such certification with reasonable certainty. Any questions concerning such certification should be directed to Bond Counsel. Legal Opinions The Bonds are offered when, as and if issued, subject to the approval of the Attorney General of the State of Texas. Delivery of and payment for the Bonds is subject to the receipt by the Purchaser of opinions of Bond Counsel, to the effect that the Bonds are valid and binding obligations of the City and that the interest on the Bonds will be excludable from gross income for federal income tax purposes under existing law, subject to the matters described under "Other Infonnation - Tax Exemption" in the Official Statement, including the alternative minimum tax on corporations. CertulCation of Omcial Statement At the time of payment for and Initial Delivery of the Bonds, the City will execute and deliver to the Purchaser a certificate in the fonn set forth in the Official Statement. - ill - Change in Tax Exempt Status At any time before the Bonds are tendered for delivery, the Purchaser may withdraw its bid if the interest received by private holders on bonds of the same type and character shall be declared to be taxable income under present federal income tax laws, either by ruling of the Internal Revenue Service or by a decision of any Federal court, or shall be declared taxable or be required to be taken into account in computing any federal income taxes, by the tenns of any federal income tax law enacted subsequent to the date of this Notice of Sale and Bidd\ng Instructions. GENERAL Financial Advisor First Southwest Company is employed as Financial Advisor to the City in connection with the issuance of the Bonds. The Financial Advisor's fee for services rendered with respect to the sale of the Bonds is contingent upon the issuance and delivery of the Bonds. First Southwest Company may submit a bid for the Bonds, either independently or as a member of a syndicate organized to submit a bid for the Bonds. First Southwest Company, in its capacity as Financial Advisor, has relied on the opinion of Bond Counsel and has not verified and does not assume any responsibility for the infonnation, covenants and representations contained in any of the legal documents with respect to the federal income tax status of the Bonds, or the possible impact of any present, pending or future actions taken by any legislative or judicial bodies. Blue Sky Laws By submission of its bid, the Purchaser represents that the sale of the Bonds in states other than Texas will be made only pursuant to exemptions from registration or, where necessary, the Purchaser will register the Bonds in accordance with the securities law of the states in which the Bonds are offered or sold. The City agrees to cooperate with the Purchaser, at the Purchaser's written request and expense, in registering the Bonds or obtaining an exemption from registration in any state where such action is necessary, provided, however, that the City shall not be obligated to execute a general or special consent to service of process in any such jurisdiction. Not an Offer to Sell This Notice of Sale and Bidding Instructions does not alone constitute an offer to sell the Bonds, but is merely notice of the sale of the Bonds. The offer to sell the Bonds is being made by means of the Notice of Sale and Bidding Instructions, the Official Bid Fonn and the Official Statement. Prospective purchasers are urged to carefully examine the Official Statement to detennine the investment quality of the Bonds, Issuance of Additional Debt The City does not anticipate the issuance of additional debt within the next twelve month period. Ratings The presently outstanding tax supported debt of the City is rated" A" by Moody's Investors Service, Inc. ("Moody's") and" A +" by Standard & Poor's Ratings Group, a division of McGraw-Hill ("S&P"). The City also has eight issues outstanding which are rated "Aaa" by Moody's and "AAA" by S&P through insurance by various commercial insurance companies. Applications for contract ratings on this issue have been made to both Moody's and S&P. The results of their detenninations will be provided as soon as possible. Municipal Bond Insurance In the event the Bonds are qualified for municipal bond insurance, and the Purchaser desires to purchase such insurance, the cost therefor will be oaid bv the Purchaser. Any fees to be paid to the rating agencies as a result of said insurance will be oaid bv the City. It will be the responsibility of the Purchaser to disclose the existence of insurance, its tenns and the effect thereof with respect to the reoffering of the Bonds. - iv - "J!\I! The Official Statement and Compliance with SEC Rule 15c2-12 The City has prepared the accompanying Official Statement and, for the limited purpose of complying with SEC Rule 15c2-12, deems such Official Statement to be final as of its date within the meaning of such Rule for the purpose of review prior to bidding. Representations made and to be made by the City concerning the absence of material misstatements and omissions in the Official Statement are addressed elsewhere in this Notice of Sale and Bidding Instructions and in the Official Statement. The City will furnish to the Purchaser, or Purchasers, acting through a designated senior representative, in accordance with instructions received from the Purchaser(s), within seven (7) business days from the sale date an aggregate of 150 copies of the Official Statement including a like number of copies of any Supplement(s) reflecting interest rates and other tenns relating to the initial reoffering of the Bonds. The cost of a reprinted Official Statement, if the Purchaser(s) shall so elect, and the cost of any Official Statement in excess of the number specified shall be prepared and distributed at the cost of the Purchaser(s). The Purchaser(s) shall be responsible for providing in writing the initial reoffering prices and other tenns, if any, to the Financial Advisor by the close of the next business day after the award. Except as noted above, the City assumes no responsibility or obligation for the distribution or delivery of any copies of the Official Statement in connection with the offering or reoffering of the subject securities. Additional Copies of Notice, Bid Form and Statement A limited number of additional copies of this Notice of Sale and Bidding Instructions, the Official Bid Fonn and the Official Statement, as available over and above the nonnal mailing, may be obtained at the offices of First Southwest Company, Investment Bankers, 1700 Pacific Avenue, Suite 500, Dallas, Texas 75201, Financial Advisor to the City. On the date of the sale, the City Council will, in the Ordinance authorizing the issuance of the Bonds, confinn its approval of the fonn and content ofthe Official Statement, and any addenda, supplement or amendment thereto, and authorize its use in the reoffering of the Bonds by the Purchaser. TOMMY BROWN Mayor City of North Richland Hills, Texas ATTEST: JEANETTE REWIS City Secretary March 28, 1995 - v - BOND YEARS Bonds Accumulated Bonds Maturing Amount Bond Years Bond Years Maturing 1997 $ 150,000 280.833 280.833 1997 1998 150,000 430.833 711. 666 1998 1999 300,000 1,161.667 1,873.333 1999 2000 300,000 1,461.667 3,335.000 2000 2001 300,000 1,761.667 5,096.667 2001 2002 300,000 2,061.667 7,158.334 2002 2003 300,000 2,361.667 9,520.001 2003 2004 300,000 2,661. 667 12,181.668 2004 2005 300,000 2,961.667 15,143.335 2005 2006 360,000 3,914.000 19,057.335 2006 2007 360,000 4,274.000 23,331.335 2007 2008 360,000 4,634.000 27,965.335 2008 2009 360,000 4,994.000 32,959.335 2009 2010 360,000 5,354.000 38,313.335 2010 2011 360,000 5,714.000 44,027.335 2011 2012 360,000 6,074.000 50,101. 335 2012 2013 360,000 6,434.000 56,535.335 2013 2014 360,000 6,794.000 63,329.335 2014 2015 360,000 7,154.000 70,483.335 2015 Average Maturity ---------------------------------11.747 Years OFFICIAL BID FORM Honorable Mayor and City Council City of North Richland Hills, Texas April 10, 1995 Members of the City Council: Reference is made to your Official Statement and Notice of Sale and Bidding Instructions, dated March 28, 1995 of $6,000,000 CITY OF NORTH RICHLAND HILLS, TEXAS GENERAL OBLIGATION BONDS, SERIES 1995, both of which constitute a part hereof. For your legally issued Bonds, as described in said Notice of Sale and Bidding Instructions and Official Statement, we will pay you par and accrued interest from date of issue to date of delivery to us, plus a cash premium of $ for Bonds maturing and bearing interest as follows: Principal Interest Principal Interest Principal Interest Maturity Amount Rate Maturity Amount Rate Maturity Amount Rate 2-15-1997 $ 150,000 % 2-15-2003 $ 300,000 % 2-15-2010 $ 360,000 % 2-15-1998 150,000 % 2-15-2004 300,000 % 2-15-2011 360,000 % 2-15-1999 300,000 % 2-15-2005 300,000 % 2-15-2012 360,000 % 2-15-2000 300,000 % 2-15-2006 360,000 % 2-15-2013 360,000 % 2-15-2001 300.000 % 2-15-2007 360,000 % 2-15-2014 360,000 % 2-15-2002 300,000 % 2-15-2008 360,000 % 2-15-2015 360,000 % 2-15-2009 360,000 % % Our calculation (which is not a part of this bid) of the interest cost from the above is: Total Interest Cost $ Less Premium NET INTEREST COST $ EFFECTIVE INTEREST RATE % We are having the Bonds of the following maturities at a premium of $ paid to the rating agencies as a result of said insurance will be paid by the Citv. insured by , said premimn to be paid by the Purchaser. Any fees to be The Initial Bond shall be registered in the name of , which will, upon payment for the Bonds, be cancelled by the Paying AgentlRegistrar. The Bonds will then be registered in the name of Cede & Co, (DTC's partnership nominee), under the Book-Entry- Only System, A bank cashier's check or certified check of the Bank, , in the amount of $120,000,00, which represents our Good Faith Deposit (is attached hereto) or (has been made available to you prior to the opening of this bid), and is submitted in accordance with the terms as set forth in the Official Statement and Notice of Sale and Bidding Instructions. We agree to accept delivery of the Bonds utilizing the Book-Entry-Only System through DTC and make payment for the Initial Bond in immediately available funds in the Corporate Trust Division, Bank One, Texas N,A., Fort Worth, Texas, not later than 10:00 AM, COT, on May 16, 1995, or thereafter on the date the Bonds are tendered for delivery, pursuant to the tenns set forth in the Notice of Sale and Bidding Instructions, The undersigned agrees to complete, execute, and deliver to the City, at least six business days prior to delivery of the Bonds, a certificate relating to the "issue price" of the Bonds in the form and to the effect accompanying the Notice of Sale and Bidding Instructions, with such changes thereto as may be acceptable to the City. We agree to provide in writing the initial reoffering prices and other terms, if any, to the Financial Advisor by the close of the next business day after the award. Respectfully submitted, By Authorized Representative ACCEPTANCE CLAUSE The above and foregoing bid is hereby in all things accepted by the City of North Richland Hills, Texas, subject to and in accordance with the Notice of Sale and Bidding Instructions, this the 10th day of April, 1995, ATTEST: Mayor City of North Richland Hills, Texas City Secretary ISSUE PRICE CERTIFICATE The undersigned hereby certifies with respect to the sale of CITY OF NORTH RICHLAND HILLS, TEXAS GENERAL OBLIGATION BONDS, SERIES 1995 (the "Bonds"), issued in aggregate principal amount of $6,000,000, as follows: 1, The undersigned is the underwriter or the manager of the syndicate of underwriters which has purchased the Bonds from the City of North Richland Hills, Texas (the "Issuer") at competitive sale, 2, The undersigned and/or one or more other members of the underwriting syndicate, if any, have made a bona fide offering to the public of the Bonds of each maturity at the respective prices set forth below. 3, The initial offering price (expressed as a percentage of principal amount or yield and exclusive of accrued interest) for the Bonds of each maturity at which a substantial amount of the Bonds of such maturity was sold to the public is as set forth below: Principal Offering Principal Offering Amount Year of Price Amount Year of Price Maturing Maturity (%/Yield) Maturing Maturity (%/Yield) $ 150,000 1997 % $ 360,000 2007 % 150,000 1998 % 360,000 2008 % 300,000 1999 % 360,000 2009 % 300,000 2000 % 360,000 2010 % 300,000 2001 % 360,000 2011 % 300,000 2002 % 360,000 2012 % 300,000 2003 % 360,000 2013 % 300,000 2004 % 360,000 2014 % 300,000 2005 % 360,000 2015 % 360,000 2006 % 4, The term "public," as used herein, means persons other than bondhouses, brokers, dealers, and similar persons or organizations acting in the capacity of underwriters or wholesalers. 5, The offering prices described above reflect current market prices at the time of such sales. 6, The undersigned and/or one or more other members of the underwriting syndicate, as the case may be, (have)(have not) purchased bond insurance for the Bonds, The bond insurance, if any, has been purchased from (the "Insurer") for a premium cost of $ (net of any nonguarantee cost, e,g" rating agency fees), The amount of such cost is set forth in the Insurer's commitment and is separately stated from all other fees or charges payable to the Insurer, The premium does not exceed a reasonable charge for the transfer of credit risk taking into account payments charged by guarantors in comparable transactions (including transactions in which a guarantor has no involvement other than as a guarantor), The present value of the debt service savings expected to be realized as a result of such insurance, discounted at a rate equal to the yield on the Bonds which results after recovery of the insurance premium, exceeds the present value of the bond insurance premium, 7, The undersigned understands that the statements made herein will be relied upon by the Issuer in its effort to comply with the conditions imposed by the Internal Revenue Code of 1986, as amended, on the excludability of interest on the Bonds from the gross income of their owners, EXECUTED and DELIVERED this day of , 19_ (Name of Underwriter or Manager) By (Title) Prepared by: d=FIRST nTIHW5I' COMPANY TABULATION OF BIDS RECEIVED AT SALE OF $6,000,000 CITY OF NORTH RICHLAND HILLS, TEXAS (Tarrant County) GENERAL OBLIGATION BONDS, SERIES 1995 SELLING MONDAY, APRIL 10,1995, AT 4:00 PM, CDT TOTAL NET EFFECTIVE INTERFSf LESS INTEREST INTEREST ACCOUNT MANAGER COST PREMIUM COST RATE : Raymond James Assoc. :;3,989,610.83 5.660361% NationsBanc Capital Mkts. ~3,990,918.75 5.660878% First Southwest Co. 3,994,741.17 5.667639% Griffin Kubik, Stephens & Thompson 4,000,483.50 5.6757% Kemper Securities S4,004,318.00 5.68122% , Paine Webber Þ4,059,778.33 5.759913% Merrill Lynch 4,078,612.83 5.7866% Prudential Securities 4,109,254.17 5.8301% f'- f'- f'- Con~ ~ ~ ~ ~ 0 ~ >- >- >- ~~~ 0 M ~ ;:J~_ ...... ~ ~>..J 0 0\ -< N N N ...... ...... Con ~~ ~ ~~ ~ ~ ...... o>-~ 00 II") II") \0 ø:I;:J_ ~ E-< ~ ~ ~ Con E-<~~ 0 ~ ~ N ~~~ N M II") M ~ 0 M II") - II") M I.Ci ~ M M ...... 0\ 0\ q- t:) I I 0 0 ...... ~ ...... ...... ...... ~ I I , II") II") N Con Q) '; ~ ::I '; ~ 5 1¡:) z ~ ~ 5 0 E-<~ 0 0 ~ ~~ ~ - E-< ~ ~ 00 ~ < Q)'i ::s E-< E-<~ 5: E-< ~ ~ S~M f'- 0 ::::: - - .... .... ~ :I: :I: .... 0\ :I: Z SO\ - ~ "0 .... ...... ~ ~ ã¿f'- ..J - - Q) - < -5M -5 S·t:: -5...... ~~ .... Q) Q) .... 0\ Con ~~Con ~O\ ..J '€ » ~ ...... 'Ê á'S Con = '€ á'S < o "",.52 u 0·... o .... § z 1¡:) zQ)~ z 1¡:) ~ 00 <+-0 Con <+-0 Q).... <+-0 Con o ~ oCon:ë o ~ E-< f'- f'- Con .~'8 þ~o .~'8 - .... <+-0 :I: u 0 u 0 u 0 ~ §~~ ø:I §.§ §.§ ~..... .,.¡~~ II")~ ~ :a~ 00 1¡:).... MOO 00 .... ...........t: t- .... zi~ ~ ~ Q) ti~ ~~U ~ I i ~ .¡;;.. (JI "Bond Buyer's" Index of10 Municipal Bonds BuIs Valuadon of Par Bonds The most important guide as to what the Municipal Bond Market bas done in one time period versus another is the "Bond Buyer's" 20 Bond Index. Published on Thursday of each week, it is the accepted guide of the Municipal Bond Industry to detennine trends and movements of interest rates in the marlœ" To compute the index each week a poll is taken of several large investment banking houses on the 20 year price (expressed in tenns of an interest rate) of the outstanding bonds of certain municipalities. Week 198' 1986 1987 1988 1989 1990 1991 1992 1993 1994 199' January 1 9,87 8,33 6,8' 7.83 7,44 7,03 7.09 6.'2 6.17 '.34 6.66 2 9.60 8.04 6.70 7.83 7.40 7.03 7.1' 6.40 6,19 Bl 6.53 3 9.'1 8.10 6,6' 7,61 7.29 7.14 7.10 6.56 6,16 5.29 6.44 4 9.21 8.05 6.'4 7.'1 7.27 7.19 7.06 6.59 6,10 5.28 6.49 5 9.37 7.86 6.56 7.00 6.65 February 1 9.52 7.73 6.57 7.49 7.29 7.24 6.86 6,71 6.04 5.2' 6.40 2 9.64 7.62 6.67 7.40 7.38 7.20 6.81 6.74 5.97 5.36 6.18 3 9.71 7.44 6.62 7.55 7.54 7.16 6.97 6,75 5.85 5.42 6.18 4 9.71 6,98 6,59 7,52 7.55 7,27 7,01 6.74 HO '.58 6.11 5 March 1 9.75 6,88 6.54 7.47 7.56 7,25 7,06 6,71 5.47 H4 6.08 2 9.76 6.89 6.61 7.67 7.52 7.25 7.06 6.76 5.58 5,88 6.18 3 9.82 7,34 6.68 7.75 7,'2 7,32 7,13 6,79 5.71 5.84 6.06 4 9.7' 7.21 6,79 7,89 7.72 7.31 7.14 6.77 5.78 5,92 6.09 5 7,90 7.64 7.33 6,07 6.07 April 1 9,63 7,15 6,93 7,80 7.56 7,33 7,06 6.73 5.86 6.34 6,03 2 9.39 7,25 7,27 7,81 7,54 7,31 7,02 6.66 5.84 6.22 3 9,25 7,16 7,90 7,87 7,44 7,39 6.98 6.60 5.70 6.19 4 9,39 7,22 7,82 7,77 7,40 7,51 7,01 6,68 5.67 6.16 5 7,85 6.69 5.75 May 1 9.37 7,33 7.86 7,84 7.36 7.54 6.95 6.64 5.71 6.18 2 9.11 7,36 7.82 7,85 7,36 7,39 6.93 6,54 5.69 6.32 3 8,86 7.53 8.31 7.97 7.18 7.29 6.94 6.51 5.77 6,14 4 8.91 7.78 8.03 7.96 7.11 7.26 6.98 6.58 5.73 6.13 5 8.81 7.70 7.26 6,97 June 1 8,60 7.97 7.97 7,87 7,15 7.21 7,06 6,57 5.67 6.09 2 8.66 8.08 7.83 7.78 6.95 7.20 7,19 6.52 5.68 5,96 3 8.69 7.82 7.63 7.73 6.88 7.28 7.15 6.46 5.61 6,04 4 8,80 7,59 7.72 7,77 7,08 7.27 7.13 6.42 5.57 6,16 5 7.74. 7.02 6,28 July 1 8,82 7.51 7,81 7,75 7,00 7.24 7.10 6,38 5,55 6,27 2 8,81 7.45 7.67 7.77 6.92 7.21 7.07 6.17 5.55 6,22 3 8.73 7.45 7.66 7.77 6,95 7.17 7,04 6,16 5.50 6.22 4 8,87 7,60 7,72 7,76 6,95 7,15 7,00 6,05 5,61 6.22 5 7,54 7,73 5,89 5.65 August 1 9,01 7,53 7,86 7,69 6,86 7.08 6,99 6,06 5.61 6.16 2 9.02 7.33 7,79 7,83 7,02 7,22 6,94 6,05 5.45 6,25 3 9.12 7.06 7.81 7.85 7,09 7,26 6,88 6,21 5.40 6.22 4 9.18 6,93 7.80 7.80 7,15 7.56 6,86 6,31 5.35 6.21 5 9.09 7,16 7.47 6,85 September I 9.07 7.00 8,05 7,76 7,15 7.41 6,86 6,24 5,35 6,16 2 9,26 7.15 8.38 7.67 7.16 7.35 6,81 6,16 5,24 6.18 3 9.35 7.14 8.32 7,59 7,33 7.41 6,78 6,27 5,27 6,24 4 9.38 7,15 8.30 7.62 7.40 7,53 6,73 6,33 5.30 6,37 5 7,64 5.30 6.43 .&;ìI. October 1 9.33 7.19 8.53 7.53 7,27 7.48 6,64 6,27 5,30 6.50 2 9.2' 7.06 8,66 7,52 7,19 7,56 6,66 6,29 5.20 6,44 3 9.12 7.08 9,17 7.45 7,19 7.48 6,67 6.34 5,20 6.49 4 8.95 7,11 8,72 7,36 7,22 7.43 6.73 6,53 5.31 6.64 5 8,76 6,94 8.43 6,69 6,62 November 1 8,68 6.94 7.90 7.33 7,24 7,29 6,71 6,51 5.45 6,83 2 8,60 6,92 8.03 7.44 7,20 7,24 6,69 6.38 5.46 6,96 3 8.37 6.78 7,91 7,50 7,12 7.15 6.75 6.28 5.46 7.06 4 8,51 6.74 7,96 7,58 7,08 7,13 6,78 6.26 5.49 7.03 5 7.04 7,08 December 1 8.54 6,77 7.90 7.66 7,00 7,06 6,80 6,28 5.46 6,90 2 8.42 6,94 8,10 7.68 6.99 7,05 6,71 6,22 5,33 6,88 3 8,38 6.92 8.01 7,66 6.96 7.11 6.66 6.25 5.36 6.77 4 8,36 6,83 7.95 7.57 6.97 7,14 6,58 6,19 5.34 6.70 01 5 7.86 7,50 6,17 5.28 6.71 ~ Moody's Municipal Daily Rating Recap DAILY RATING RECAP Report Date: April 5, 1995 ------------------------------------------------------------------------------ NORTH RICHlAND HIllS, TEXAS General Obligation Bonds, Series 1995 MOODY'S RATING: A SALE: $6,000,000 DATE OF SALE: April 10 TYPE: Competitive SECURITY: General obligation, limited tax. USE OF PROCEEDS: Street, drainage, and public safety improvements. lAST RATING CHANGE: January 1981: Baal to A ------------------------------ CREDIT COHMENT ------------------------------- The upper medium grade security assigned to these bonds reflects the following credit characterisitcs: Sizable and Diverse Economic Base Exhibits Growth The city continues to benefit economically from its location between Dallas and Fort Worth. The local economic base, which exhibited over 5% growth in Fiscal 1995, the first increase in three years, is comprised of a mix of wholesale and retail trade, manufacturing and professional and related services. Other favorable economic indicators include healthy growth in sales taxes and building permits. The city's advantageous location has also fostered considerable residential development and contriubted to the rapid population growth. Residents display above average wealth levels with city unemployment rates consistently below the state and nation. Healthy General Fund Balance levels Enhances Financial Flexibility Favorable financial operations are reflected in a trend of ample reserves; the city targets to maintain 12-15% of expenditures in the General Fund balance. Fiscal 1995 fund balance is expected to increase slightly from current levels. Property taxes represent the largest revenue source and are supported by good tax collections. In order to maintain property tax levies, tax rates were increased in years of declines in taxable resources. Sales taxes also represent a key operating revenue and are supported by healthy growth. Debt service has a large claim on expenditures accounting for approximately one- quarter of total expenditures. Above Average Debt levels to Continue The high debt burden of 7.3% reflects frequent debt issuance by the city. Togther with the current offering, the city is also issuing $2 million sales tax revenue bonds. The remaining $21.5 million authorization designated for streets and drainage is expected in annual installments over the next five years. Bond payout is above average. ANALYSTS: Orlie Prince (212) 553-7733 Dennis Porcaro (214) 220-4347 (Ja ------------------------------------------------------------------------------ ~ CITY OF NORTH RICHLAND HILLS )epartment: Finance ~ Council Meeting Date: April 10, 1995 "-..-- Subject: Consideration of Action on all Matters Pertaining to the Award Agenda Number' GN 95-51,. and Sale of $2,000,000 In Sales Tax Revenue BonClS . for Park and Recreation Purposes - Resolution #95-19 The Park and Recreation Facilities Development Corporation Board of Directors will meet prior to the City Council meeting April 1 0, 1995 and will receive bids for the sale of $2,000,000 in Sales Tax Revenue Bonds for Parks and Recreational purposes. The Corporation Board will be taking action not only to award the bid for the sale of the bonds, but also to. approve the necessary documents to authorize the issuance, approve the paying agent/registrar, and the FinancinglUse Agreement. It is necessary for the City Council to ratify the actions of the Park and Recreation Facilities Corporation Board and to pass a resolution approving the Corporation's issuance of such bonds and execution of the Financing/Use Agreement. Mr. David Medanich of First Southwest Company and our Bond Counsel, Mr. Ed Esquivel of Fulbright and Jaworski will be present to discuss these matters and actions necessary to be taken by Council. On March 16 and 17 representatives from City of North Richland Hills met with bond rating agencies, Moody's, and Standard and Poor's, to discuss the projects, economy, and financing plan for the projects. Standard and Poor's has upgraded our Sales Tax Revenue bond rating from A- to A. We are very pleased about this. Moody's has notified us that they are retaining their A rating for these bonds. Both of these ratings are favorable, and it is especially noteworthy about the upgrade by Standard and Poor's. - We have also planned to change our principal repayment to an equal principal basis as mentioned with the G.O. bonds. By doing this we anticipate interest savings of $245,700 over the 20 years Of the Sales Tax Revenue Bonds, 1995 Series. . RECOMMENDATION: It is recommended that the City Council ratify the actions of the Park and Recreation Facilities Corporation Board in conjunction with the sale of Sales Tax Revenue Bonds, Series 1995, approve Resolution 95-19, and approve the Financing/Use Agreement. Finance Review Source of Funds: Bonds (GO/Rev.) --- Operating Budget ~ . , epartment' ea . ~atur. CITY COUNCIL ACTION ITEM - , FInance Ooreclor - Pace 1 of RESOLUTION NO. 95-19 A RESOLUTION by the city council of the City of North Richland Hills, Texas, relating to the "North Richland Hills Park and Recreation Facilities Development Corporation Sales Tax Revenue Bonds, Series 1995"; approving (i) the resolution of the Corporation authorizing the issuance of such Bonds and (ii) the execution, on behalf of the City, of the Financing/Use Agreement relating to such financing by the Corporation; resolving other matters incident and related to the issuance, sale and delivery of such Bonds; and providing an effective date. WHEREAS, North Richland Hills Park and Recreation Facilities Development Corporation (the "Issuer") was created by the City of North Richland Hills, Texas (the "City"), pursuant to the provisions of section 4B of the Development Corporation Act of 1979, Article 5190.6, Vernon's Texas civil Statutes, as amended (the "Act"); and WHEREAS. the Issuer is empowered, on behalf of the City, to issue bonds for the purpose of providing parks and park facilities, ball parks, open space improvements, and other facilities permitted by section 4B of the Act; and WHEREAS, the Board of Directors of the Issuer has determined that $2,000,000 in principal amount of Bonds should be sold and issued at this time to finance the costs of park and recreational projects, including (i) construction of Family Aquatic Park, (ii) construction of a tennis center /mul tiple athletic complex and appurtenant recreation facilities, (iii) design and construction of hike and bike trails and (iv) general improvements to city, community and neighborhood parks, including the purchase of land (the "Projects"); and WHEREAS, the Issuer and the City have found that each of the Projects to be required or suitable for the use for sports, entertainment and public park purposes; and WHEREAS, section 25(f) of the Act requires the City Council of the City approve the resolution of the Issuer providing for the issuance of the Bonds no more than sixty (60) days prior to the delivery of the Bonds; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: O2402M section 1: The Resolution authorizing the issuance of $2,000,000 "North Richland Hills Park and Recreation Facilities Development Corporation Sales Tax Revenue Bonds, Series 1995", to be adopted by the Issuer (the "Issuer Resolution") on April 10, 1995, as presented and submitted to the City Council, is hereby approved in all respects. The Bonds are being issued to finance the construction of the Projects, which will be located within the City of North Richland Hills, and the City agrees that upon receipt of the proceeds of sale of the Bonds from the Issuer, the City will construct the Projects and thereafter be fully responsible for the upkeep, maintenance and use of the Projects. Section 2: The approvals herein given are in accordance with section 25(f) of the Act and section 6 of Article IV of the Bylaws of the Corporation, and the Bonds shall never be construed an indebtedness or pledge of the City, or the State of Texas (the "state"), within the meaning of any constitutional or statutory provision, and the owner of the Bonds shall never be paid in whole or in part out of any funds raised or to be raised by taxation (other than sales tax proceeds as authorized pursuant to Section 4B of the Act) or any other revenues of the Issuer, the City, or the State, except those revenues assigned and pledged by the Issuer, Resolution. Section 3: The City hereby agrees to promptly collect and remit to the Issuer the Gross Sales Tax Revenues (as defined in the Issuer Resolution) in accordance with the terms of the Issuer Resolution and the Act to provide for the prompt payment of the Bonds, and to assist and cooperate with the Issuer in the enforcement and collection of sales and use taxes imposed on behalf of the Issuer. section 4: The Financing/Use Agreement by and between the City and the Issuer in relation to the Projects, attached hereto as Exhibit A and incorporated by reference as a part of this resolution for all purposes, with respect to the duties, responsibilities and obligations of the City and Issuer during the time the Bonds are outstanding, is hereby approved as to form and substance, and the Mayor and the ci ty Secretary are hereby authorized to execute and deliver such agreement for and on behalf of the City and as the act and deed of this City Council. Furthermore, the Mayor and the ci ty Secretary and the other officers of the City are hereby authorized, jointly and severally, to execute and deliver such endorsements, instruments, certif icates, documents, or papers necessary and advisable to carry out the intent and purposes of this Resolution. section 5: The City hereby acknowledges and recognizes that the Bonds are being issued as tax exempt obligations under and pursuant to section 103(a) of the Code (as defined below) and the proceeds of sale of such Bonds are to be deposited with the City fOllowing their receipt by the Issuer and the City shall have full control and responsibility with respect to the construction of the 024023.5 -2- Projects and tLe investment and disbursement of the proceeds of sale of the Bonds. Therefore, as a result of the foregoing, the City hereby makes the following representations and warranties to the Issuer: (a) Definitions. When used in this Section, the following terms have the following meanings: "Closing Date" means the date on which the Bonds are first authenticated and delivered to the initial purchasers against payment therefor. "Code" means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. "Computation Date" has the meaning set forth in Section 1.148-1(b) of the Regulations. "Gross Proceeds" means any proceeds as defined in Section 1.148-1(b) of the Regulations, and any replacement proceeds as defined in section 1.148-1 (c) of the Regulations, of the Bonds. "Investment" has the meaning set forth in section 1.148-1(b) of the Regulations. "Nonpurpose Investment" means any investment property, as defined in section 148(b) of the Code, in which Gross Proceeds of the Bonds are invested and which is not acquired to carry out the governmental purposes of the Bonds. "Rebate Amount" has the meaning set forth in Section 1.148-1(b) of the Regulations. "Regulations" means any proposed, temporary, or final Income Tax Regulations issued pursuant to Sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue Code of 1954, which are applicable to the Bonds. Any reference to any specific Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced. "Yield" of (1) any Investment has the meaning set forth in Section 1.148-5 of the Regulations and (2) the Bonds has the meaning set forth in Section 1.148-4 of the Regulations. (b) Not to Cause Interest to Become Taxable. The city shall not use, permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or O24023ð -3- improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any Bond to become includable in the gross income, as defined in section 61 of the Code, of the owner thereof for federal income tax purposes. without limiting the generality of the foregoing, unless and until the City receives a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Bond, the City shall comply with each of the specific covenants in this section. (c) No Private Use or Private Payments. Except as permitted by section 141 of the Code and the Regulations and rulings thereunder, the City shall at all times prior to the last Stated Maturity of Bonds: (1) exclusively own, operate and possess all property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Bonds, and not use or permit the use of such Gross Proceeds (including all contractual arrangements with terms different than those applicable to the general public) or any property acquired, constructed or improved with such Gross Proceeds in any activity carried on by any person or entity (including the united states or any agency, department and instrumentality thereof) other than a state or local government, unless such use is solely as a member of the general public; and (2) not directly or indirectly impose or accept any charge or other payment by any person or entity who is treated as using Gross Proceeds of the Bonds or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds, other than taxes of general application within the City or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. (d) No Private Loan. Except to the extent permitted by section 141 of the Code and the Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Bonds to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be "loaned" to a person or entity if: (1) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes; (2) capacity in or service from such property is committed to such person or entity under a take-or-pay, output or similar contract O2402M -4- or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any property acquired, constructed or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. (e) Not to Invest at Hiqher Yield. Except to the extent permi tted by section 148 of the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the final Stated Maturity of the Bonds directly or indirectly invest Gross Proceeds in any Investment (or use Gross Proceeds to replace money so invested), if as a result of such investment the Yield from the Closing Date of all Investments acquired with Gross Proceeds (or with money replaced thereby), whether then held or previously disposed of, exceeds the Yield of the Bonds. (f) Not Federallv Guaranteed. Except to the extent permitted by section 149(b) of the Code and the Regulations and rulings thereunder, the city shall not take or omit to take any action which would cause the Bonds to be federally guaranteed within the meaning of section 149(b) of the Code and the Regulations and rulings thereunder. (g) Payment of Rebatable Arbitraqe. Except to the extent otherwise provided in section 148(f) of the Code and the Regulations and rulings thereunder: (1) The City shall account for all Gross Proceeds (including all receipts, expenditures and investments thereof) on its books of account separately and apart from all other funds (and receipts, expenditures and investments thereof) and shall retain all records of accounting for at least six years after the day on which the last outstanding Bond is discharged. However, to the extent permitted by law, the city may commingle Gross Proceeds of the Bonds with other money of the City, provided that the City separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired therewith. (2) Not less frequently than each Computation Date, the City shall calculate the Rebate Amount in accordance with rules set forth in section 148(f) of the Code and the Regulations and rulings thereunder. The city shall maintain such calculations with its official transcript of proceedings relating to the issuance of the Bonds until six years after the final computation Date. (3) As additional consideration for the purchase of the Bonds by the Purchasers and the loan of the money represented thereby and in order to induce such purchase by measures designed to insure the excludability of the O2402M -5- interest thereon from the gross income of the owners thereof for federal income tax purposes, the City shall remit to the Issuer for payment to the united states the amount described in paragraph (3) above and the amount described in paragraph (4) below, at the times, in the manner and accompanied by such forms or other information as is or may be required by Section 148(f) of the Code and the Regulations and rulings thereunder. (4) The City shall exercise reasonable diligence to assure that no errors are made in the calculations and payments required by paragraph (2), and if an error is made, to discover and promptly correct such error within a reasonable amount of time thereafter (and in all events within one hundred eighty (180) days after discovery of the error), including the amount remitted to the Issuer for payment to the united states of any additional Rebate Amount owed to it, interest thereon, and any penalty imposed under section 1.148-3(h) of the Regulations. section 6: It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by V.T.C.A., Government Code, Chapter 551, as amended. section 7: This Resolution shall be in force and effect from and after its passage on the date shown below. PASSED AND ADOPTED, this April 10, 1995. CITY OF NORTH RICHLAND HILLS, TEXAS Mayor ATTEST: City Secretary (city Seal) O2402M -6- EXHIBIT /1 FINANCING/USE AGREEMENT This Financing/Use Agreement (this "Agreement') is made to be effective as of the 10th day of April, 1995, by and between the Ci ty of North Richland Hills, Texas, a duly incorporated and existing municipal corporation and political subdivision of the state of Texas (the "city") and the North Richland Hills Park and Recreation Facilities Development Corporation, a non-profit industrial development corporation organized and existing under the laws of the state of Texas, including Vernon's Ann. ci v . st., Section 4B of Article 5190.6, (the "Corporation") R E C I TAL S WHEREAS, the Corporation on behalf of the City is to finance park and recreational projects, including (i) construction of Family Aquatic Park, (ii) construction of a tennis center/multiple athletic complex and appurtenant recreation facilities, (iii) design and construction of hike and bike trails and (iv) general improvements to city, community and neighborhood parks, including- the purchase of land (the "Projects"); and WHEREAS, such financing contemplates the issuance and sale of the Corporation's tax exempt bonds in the principal amount of $2,000,000, and the proceeds of sale are to be used by the City to design and construct the Projects; and WHEREAS, the City will have full responsibility for the design and construction of the Projects and the Corporation shall have no duties or responsibilities with respect to the Projects other than to provide for the financing of its costs; AGREEMENT 1. Financinq of proiects: For and in consideration of the City's covenants and agreements herein contained and subject to the terms contained herein, the Corporation hereby agrees to issue and sale a series cf obligations to be known as "North Richland Hills Park and Recreation Facilities Development Corporation Sales Tax Revenue Bonds, Series 1995", hereinafter called the "Bonds", and deposit the proceeds of sale of the Bonds to a construction fund or account to be designated by the City, and the City hereby agrees and covenants that all proceeds of sale deposited to the credit of such construction account shall be used solely to pay the costs of the Projects. 2. Use of Proiects. Until all the Bonds have been fully paid, discharged and retired, the up~eep and maintenance of the Projects will be the responsibility of the City and the Corporation shall have no responsibility with respect to the operation, upkeep and maintenance of the Projects. 02<10224 3. Collection and Transfer of Proceeds of Sales Tax. The ci ty agrees, in cooperation with the Corporation, to take such actions as are required to cause the "Gross Sales Tax Revenues" (as such term is defined in the resolution authorizing the issuance of the Bonds) received from the Comptroller of Public Accounts of the State of Texas for and on behalf of the Corporation to be transferred and deposited immediately upon receipt by the City to the credit of the banking or monetary fund maintained at the depository designated by the Corporation and known on the books and records of the Corporation as the "Pledged Revenue Fund". 4. Recoqni tion of Tax Exempt Financing. The City hereby acknowledges and recognizes that the Bonds are being issued as "state or local bonds" under and pursuant to section 103(a) of the Internal Revenue Code of 1986, as amended, and the City hereby covenants and agrees with respect to the use of proceeds of sale of the Bonds and the use of the Projects as follows: (a) Definitions. When used in this Section, the following terms have the following meanings: "Closing Date" means the date on which the Bonds are first authenticated and delivered to the initial purchasers against payment therefor. "Cod€" means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. "Computation Date" has the meaning set forth in Section 1.148-1(b) of the Regulations. "Gross Proceeds" means any proceeds as defined in Section 1.148-1 (b) of the Regulations, and any replacement proceeds as defined in Section 1.148-1(c) of the Regulations, of the Bonds. "Investment" has the meaning set forth in Section 1.148-1(b) of the Regulations. "Nonpurpose Investment" means any investment property, as defined in section 148(b) of the Code, in which Gross Proceeds of the Bonds are invested and which is not acquired to carry out the governmental purposes of the Bonds. "Rebate Amount" has the meaning set forth in Section 1.148-1(b) of the Regulations. "Regulations" means any proposed, temporary, or final Income Tax Regulations issued pursuant to Sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue Code of 1954, which are applicable to 0240224 -2- rfXH1Rrr ~ the Bonds. Any reference to any specific Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced. "Yield" of (1) any Investment has the meaning set forth in Section 1.148-5 of the Regulations and (2) the Bonds has the meaning set forth in Section 1.148-4 of the Regulations. (b) Not to Cause Interest to Become Taxable. The City shall not use, permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any Bond to become includable in the gross income, as defined in section 61 of the Code, of the owner thereof for federal income tax purposes. Wi thout limiting the generality of the foregoing, unless and until the City receives a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Bond, the city shall comply with each of the specific covenants in this Section. (c) No Private Use or Private Payments. Except as permitted by section 141 of the Code and the Regulations and rulings thereunder, the City shall at all times prior to the last Stated Maturity of Bonds: (1) exclusively own, operate and possess all property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Bonds, and not use or permit the use of such Gross Proceeds (including all contractual arrangements with terms different than those applicable to the general public) or any property acquired, constructed or improved with such Gross Proceeds in any activity carried on by any person or entity (including the United States or any agency, department and instrumentali ty thereof) other than a state or local government, unless such use is solely as a member of the general public; and (2) not directly or indirectly impose or accept any charge or other payment by any person or entity who is treated as using Gross Proceeds of the Bonds or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds, other than taxes of general application within the City or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. 0240224 ErnlBIT A ... ·,····_--~___~~h..,__~~__" (d) No Private Loan. Except to the extent permitted by section 141 of the Code and the Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Bonds to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be "loaned" to a person or entity if: (1) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes; (2) capacity in or service from such property is committed to such person or entity under a take-or-pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any property acquired, constructed or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. (e) Not to Invest at Hiqher Yield. Except to the extent permitted by section 148 of the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the final Stated Maturity of the Bonds directly or indirectly invest Gross Proceeds in any Investment (or use Gross Proceeds to replace money so invested), if as a result of such investment the Yield from the Closing Date of all Investments acquired with Gross Proceeds (or with money replaced thereby), whether then held or previously disposed of, exceeds the Yield of the Bonds. (f) Not Federallv Guaranteed. Except to the extent permitted by section 149 (b) of the Code and the Regulations and rulings thereunder, the City shall not take or omit to take any action which would cause the Bonds to be federally guaranteed within the meaning of section 149 (b) of the Code and the Regulations and rulings thereunder. (g) Payment of Rebatable Arbitraqe. Except to the extent otherwise provided in section 148(f) of the Code and the Regulations and rulings thereunder: (1) The City shall account for all Gross Proceeds (including all receipts, expenditures and investments thereof) on its books of account separately and apart from all other funds (and receipts, expenditures and investments thereof) and shall retain all records of accounting for at least six years after the day on which the last outstanding Bond is discharged. However, to the extent permitted by law, the City may commingle Gross Proceeds of the Bonds with other money of the City, provided that the City separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired therewith. (2) Not less frequently than each Computation Date, the city shall calculate the Rebate Amount in accordance 0240224 -4- EXHIBI T 11 _·'.·.~'..O·._~'_...'~_~___'¥.'~~"_"_'"'______~__~___._.._,.____~____ with rules set forth in section 148(f) of the Code and the Regulations and rulings thereunder. The City shall maintain such calculations with its official transcript of proceedings relating to the issuance of the Bonds until six years after the final Computation Date. (3) As additional consideration for the purchase of the Bonds by the Purchasers and the use of the money represented thereby and in order to induce such purchase by measures designed to insure the excludability of the interest thereon from the gross income of the owners thereof for federal income tax purposes, the City shall remit to the Corporation for payment to the united states the amount described in paragraph (g) (2) above and the amount described in paragraph (g) (4) below, at the times, in the manner and accompanied by such forms or other information as is or may be required by Section 148(f) of the Code and the Regulations and rulings thereunder. (4) The City shall exercise reasonable diligence to assure that no errors are made in the calculations and payments required by paragraph (g) (2), and if an error is made, to discover and promptly correct such error within a reasonable amount of time thereafter (and in all events within one hundred eighty (180) days after discovery of the error), including the amount remitted to the Corporation for payment to the united States of any additional Rebate Amount owed to it, interest thereon, and any penalty imposed under Section 1.148-3(h) of the Regulations. 5. Modifications. This Agreement shall not be changed orally, and no executory agreement shall be effective to waive, change, modify or discharge this Agreement in whole or in part unless such executory agreement is in writing and is signed by the parties against whom enforcement of any waiver, change, modification or discharge is sought. 6. Entire Aqreement. This Agreement, including the Exhibits, contains the entire agreement between the parties pertaining to the subject matter hereof and fully supersedes all prior agreements and understandings between the parties pertaining to such subject matter. 7. Counterparts. This Agreement may be executed in several counterparts, and all such executed counterparts shall constitute the same agreement. It shall be necessary to account for only one such counterpart in proving this Agreement. 8. Severabili tv. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall nonetheless remain in full force and effect. .I -5- EXHIBIT A 02-40224 -".~----~--_..__...."~._..~"._--~.,----_.~.._._~_.~------...---~.~ 9. Applicable Law. This Agreement shall in all respects be governed by, and construed in accordance with, the substantive federal laws of the United states and the laws of the state of Texas. 10. Captions. The section headings appearing in this Agreement are for convenience of reference only and are not intended, to any extent and for any purpose, to limit or define the text of any section or any subsection hereof. IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of the date and year first above written. NORTH RICHLAND HILLS PARK AND RECREATION FACILITIES DEVELOPMENT CORPORATION ATTEST: President Secretary (Corporation Seal) CITY OF NORTH RICHLAND HILLS, TEXAS ATTEST: Mayor City Secretary (City Seal) 02<10224 .06 ., .' - ~'-1'T)11 \ CITY OF NORTH RICHLAND HILLS Agenda Number: 4/10/95 GN 95-52 Department: Legal Repealing Ordinance NO.794, Regulating the Discharge of Firearms - Ordinance No. 2045 Council Meeting Date: Subject: We have some applicants who wish to install a "paintball" course on some land in back of Mountasia. ( Ordinance No. 2045 would exempt supervised paintball courses on three acres of land or more from the operation of the firearms and firecracker ordinance. Recommendation: It is recommended that City Council approve Ordinance No. 2045. \ '- Finance Review Source of Funds: Acet. Number Bonds (GO/Rev.) Sufficient Funds Available ---- Operating Budget _ ~ ~h .- /J/ . 1J1Y~d /' fÆ.- _ _ Department Hell9 S-ignature ( n - n C~Manager C"Y COUNCIL ACTION "EM FllIMce Director Page 1 of ORDINANCE NO. 2045 AN ORDINANCE REPEALING ORDINANCE NO. 794; REGULATING DISCHARGE OF FIREARMS AND/OR FIREWORKS WITHIN THE CITY LIMITS OF NORTH RICHLAND HILLS, TEXAS; PROVIDING FOR A FINE NOT IN EXCESS OF $200.00 FOR VIOLATION AND PROVIDING FOR AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, that: 1. Hereafter, it shall be unlawful, except when specifically authorized by the Chief of Police for any person to discharge any gun, pistol, or firearm of any kind, or any firecrackers, torpedoes, or any other fireworks within the city limits of North Richland Hills, Texas. Peace officers acting in the line of duty are exempt from the provisions of this section regulating the discharge of firearms. Also exempt is the firing of C02 or other compressed gas tank rifles or pistols on supervised "paintball" courses occupying at least three acres of land. The term firearm shall be interpreted to include all shotguns, pistols, rifles, B-B guns, air rifles, pump-action guns, gas cartridge guns, and pellet guns. 2. Any person, firm, or corporation violating or failing to comply with any provisions of this ordinance shall be fined not more than two hundred ($200.00) dollars for each offense. 3. Ordinance No. 794 is repealed and replaced by this ordinance. PASSED AND APPROVED this 10th day of April, 1995. APPROVED: Tommy Brown - Mayor ATTEST: Jeanette Rewis - City Secretary APPROVED AS TO FORM AND LEGALITY: Rex McEntire'" Attorney for the City CITY OF NORTH RICHLAND HILLS Department: Finance Council Meeting Date: 4/10/95 Subject: Authorized Investment Officers Kesolutlon NO. 95-21 Agenda Number: GN 95-53 As a result of City staff changes, a resolution is required amending the list of authorized personnel for conducting investment transactions with authorized securities dealers and banking institutions. The following positions are suggested to be included on the list of authorized individuals: Director of Finance Accounting Manager Accountant Utility Services Manager Larry J. Cunningham Jackie Theriot Bret Starr Victor Jones The proposed resolution authorizes the Mayor to execute the form which designates these individuals. Recommendation: ....,. It is recommended that Resolution No. 95-21 be approved. Finance Review Finance Director Source of Funds: Bonds (GO/Rev.) ',_ Operating Budget _ Other V .. cr~ cf~ Department Head . ature CnYCOUNC~ACTION"EM Page 1 of Resolution No. 95-21 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, THAT: 1. The following officers of the City of North Richland Hills, Texas are hereby authorized to execute all investment transactions of the City with all securities dealers and banking institutions approved by the City's Investment Committee in accordance with the City's investment policy. 1. Larry J. Cunningham Director of Finance Signature 2. Jackie Theriot Accounting Manager Signature 3. Bret Starr Accountant Signature 4. Victor Jones, Jr. Utility Services Manager Signature PASSED AND APPROVED this 10th day of April, 1995 APPROVED: Mayor ATTEST: City Secretary APPROVED AS TO LEGALITY: Attorney for the City CITY OF NORTH RICHLAND HILLS Subject: Agenda Number: 4/10/95 GN 95-54 Department: Legal Ratification of Action Taken in Executive Session March 2/, 199b on seymour vs. NKH Council Meeting Date: At the March 27, 1995 Executive Session Council authorized the Attorney for the City to settle the Seymour vs. NRH lawsuit. Recommendation: Council ratify action. Source of Funds: Sands (GO/Rev.) 'Jperating Budget _ _Other ct. Number Sufficient Funds Available Finance DIr.c:tol D Page 1 of RESOLUTION NO. 95-22 WHEREAS, on March 27, 1995, in Executive Session the City Council authorized an offer of settlement of the case of Dorothy Seymour vs. City of North Richland Hills; and WHEREAS, such offer has been made. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, that: 1. The offer shown on Exhibit "A", authorized at the Executive Session on March 27, 1995, is hereby ratified. PASSED AND APPROVED this 10th day of April, 1995. APPROVED: Tommy Brown, Mayor ATTEST: Jeanette Rewis, City Secretary APPROVED AS TO FORM AND LEGALITY: Rex McEntire, Attorney for the City Authorization for Offer: Automobile collision: September 13, 1994; Davis Boulevard and Emerald Hills Drive Claimant: Dorothy Seymour Department: Police Expenses: Proposed offer: $ 6,147.00 235,000.00 $241,147.00 Approved at regular meeting (Executive session) on March 27, 1995. signed March 27, 1995. ~'7~ Mayo CITY OF NORTH RICHLAND HILLS Department: Municipal Court Council Meeting Date: 4-10-95 Subject: Teen Court Coordinator - Clerical Supervisor Agenda Number: GN 95-55 Presently the Teen Court Coordinator is a part-time contractual position. This was approved by the City Council shortly after the Teen Court was established. The coordinator has been hired by the City Council and reported directly to the Teen Court Board. The current coordinator has resigned. After reviewing the duties of this position along with the additional needs of the Court, the Court Administrator is recommending changes in the Teen Court Coordinator position. He is recommending that a new position I classification of "Teen Court Coordinator - Clerical Supervisor" be authorized for the Court. This position would replace the contractual Teer:- Court coordinator plus one part-time employee in the Court. The position can be funded within existing budget by combining the contractual funds and the part-time funds. .'--. The City Manager is recommending that this position be supervised by and report to the Court Administrator. This change will allow Teen Court needs to be evaluated along with other court needs through normal channels. This will also allow proper evaluation to determine if and when a full-time position is needed exclusively for Teen Court. The Court Administrator met with the Teen Court Board and we have taken that boards concerns into consideration concerning the educational requirements and salary range proposed for this position. Funding is available within the current budget for the remainder of this fiscal year and will be budgeted appropriately for next fiscal year. In accordance with the pay plan the job description has been reviewed and recommended that it be approved in "Pay Grade 16". Recommendation: It is recommended that the City Council authorize the "Teen Court Coordinator - Clerical Supervisor" position as described to replace the contractual "Teen Court Coordinator". Finance Review ( Acct. Number Sufficient Funds Available ature ~ c% ~ CITY COUNCIL ACTION ITEM Page 1 of Source of Funds: Bonds (GO/Rev.) "- ¿Operating Budget _ Other Fln..,ce DnClor CITY OF NORTH RICHLAND HILLS ~. Department: Finance / Library Council Meeting Date: 4/10/95 Subject: Award Bid for Library Li¡htin¡ Modifications Agenda Number: PU 95-28 In the 1994/95 approved budget Council appropriated funds for Library lighting modifications. Formal bids were solicited for this project and the results are outlined below. Groves Electrical Service B~I~~ -:...:.......~~!J.::..;:J~¡M Tom S. Stephens Inc. of Ft. Worth $37,400 Staff met with the low bidder, Groves Electrical Service, to discuss the project, and they are confident this project can be done for the amount quoted. The bid submitted by Groves Electrical Service met all the specifications and general requirements of the bid. Recommendation: It is recommended City Council award the bid for the Library lighting modifications to Groves Electrical Service in the amount of$27,870. Finance Review Signature CITY COUNCIL ACTION "EM 01-00-00-6000 Source of Funds: Bonds (GO/Rev.) Operating Budget X Other FIM/lOI DlteClOl Page 1 of CITY OF NORTH RICHLAND HILLS Department: Finance / Management SeIVÍces Council Meeting Date: 4/10/95 Subject: Award Bid for Tractor/Backhoe Agenda Number: PU 95-29 In the 1994/95 approved budget Council appropriated funds for the purchase of one tractor/ loaderlbackhoe. Formal bids were solicited and the results are outlined below. BIDDER TOTAL BRAND/MODEL Clemons Tractor Company $49,494 Ford 575 D Case Power and Equipment :f.~:§~W\~1F ~»..:~~.~'::~ Case 580 L Mega Equipment Company $61,305 John Deere 310 D The Ford tractor quoted by Clemons does not meet the specifications in three areas: rear tire size, less break-out force and axle design. The tractor quoted by Case Power and Equipment meets all the specifications and requirements of the bid. "-- Recommendation: It is recommended City Council award the bid for the tractorlloaderlbackhoe to Case Power and Equipment in the amount of49,814. Finance Review 06-01-03-6600 Source of Funds: Bonds (GO/Rev.) Operating Budget -X. '-Y~~ - Î ÙiP, De ~ent Head Signature CnYCOUNC~ACTION"EM Finance Director Page 1 of CITY 0 F NORTH RICHLAND HILLS '-- Department: Administration Council Meeting Date: 4/10/95 Subject: Professional Services Contract For Construction Agenda Number: PU 95-30 MatenalS t:.nglneerlng and 1 estlng for City Hall project The Staff has received a proposal from Rone Engineers to provide independent testing during all phases of the City Hall expansion project. The fees for testing services are based upon the actual amount of technical time and laboratory testing utilized for the project and performed on a unit price basis. Rone has prepared an estimate based on quantities and tests that will be required for the project. The estimated total of services is $9,980.50 and covers all necessary testing in the following areas: Pier Inspection/Building Slab/Fence Earthwork Slab on Grade/Deck/Grade Beams Concrete Paving Utility Backfill Inspection Masonry Steel Inspection This independent testing is necessary to ensure that all engineering requirements and minimum standards are met by the contractor. Recommendation: It is recommended that the City Council approve the contract with Rone Engineers for the construction materials engineering and testing for the City Hall expansion and authorize the City Manager to enter into this agreement. Finance Review Source of Funds: Acct. Number 13-70-94-6000 Bonds (GO/Rev.) Suffic' nt Funds Available ')perating Budget -X.. '-.-. _ ùther ~ ~rt~ L CITY COUNCIL ACTION ITEM F1n8llce Director Page 1 of CITY OF NORTH RICHLAND HILLS '~ Jepartment: Public Works Awara ot t:nglneerlng ~ervlces tor HOllaay Helgnts S~bject: Elementary School Traffic Safety Improvements Council Meeting Date: Agenda Number: 4/10/95 P'\<l 95-16 The City/BISD Agreement on Traffic Safety for streets adjacent to the Holiday Heights Elementary School (PW 94-26) outlined specific improvements to be made during the summer of 1994 and 1995. Last summer a parking lot was constructed at the northwest corner of the school property and the existing head-in parking lot adjacent to Lola Drive was restriped as a temporary drop-off lane. This summer permanent drop-off lanes will be constructed along the south side of Lola Drive and along the west side of Susan Lee Lane. An additional parking lot will also be constructed adjacent to Cloyce Court immediately south of the parking lot constructed last summer. The proposed improvements are shown on the attached map. Design for the improvements proposed for this summer will need to begin within the next few weeks. This will allow the improvements to be constructed during the summer months when the school is closed. City and BISD staff have received and reviewed an engineering proposal in the amount of $9,020 from Mr. George Belcheff, P.E., to design the two drop-off lanes and parking lot. Also, the City and BISD staff have agreed to utilize Steve Miller to provide the additional surveying data at a cost of $1,320. Steve Miller is the surveyor utilized last year to provide preliminary field data for the initial study on what traffic improvements were needed. BISD has agreed to reimburse the City based on the terms of the City/BISD Agreement (see attachment). Below is a summary of the costs associated with the design of these improvements. The summary also indicates the amount to be paid by the City and BISD. . "',' """..",.- ..... "".. ,-'. .Susah·Le~·...ç~l1e·...· (:·.þloYêê.·Þ9Ùrt·; ..... Dr9P..qff'..~¡¡O~.i: .::e~~irlg·L()~.<: >····Lola Drive .... Drop-Off Lane ~ City of NRH Engineering Surveying BISD Engineering Surveying $839.88 122.90 $ 1,731.90 253.45 -0- $839.88 122.91 $5,608.34 820.74 -0- FundinQ Source: From: Unspecified Street CIP Fund Balance $10,340 To: Holiday Heights Elementary School Improvements - Engineering $10,340 $ 2,571.78 376.36 $ 6,448.22 943.64 $10,340.00 Recommendation: Staff recommends Council approve the proposal from Mr. George Belcheff, P.E., in the amount of $9,020, approve the proposal from Mr. Steve Miller, surveyor, in the amount of $1,320 and the transfer of funds as indicated above. Finance Review Source of Funds: Bonds (GO/Rev.) )peratin Budget_ "'-Othe Acct. Number Suffi ient Funds Available ure CITY COUNCIL ACTION ITEM FIMnce O¡"Clor Page 1 of ··~~_~'~<~"'"'·'_"__~"_~w_.__~___...~.,.,.~<,^.,_"..~~..._,._~___~._._,~_.,> JUL 14 '94 13:35 P.2 N®RTH .I Ç}-i LAN 0 H ILL S .,. July 13, 1994 I QS of tho CIty Manager MEMO '~O: Allen Morrow Aasoc~ate Superintendent for Finance - ,BISD FROM: Rodger N. Line City Manager SUD~ECT: Parking anQ Traffic lmprOV6~ente Around nol~dðY Heighta Elementary The follow1ng is a summary of the ågreement reached at our me8t!ng on July 13, 1994. The moeting was attended by BlSD president, Calvin Whi~e, Ae80ciate superintendent Allen Morrow, Mayor Tommy l3rown, Public Works qirector G~eg Dickens, Mike Curtis, Staff En9in~er and me. P'inanoing ~he City ånd 5ISD will share equally in the cost of the two pe.:rk!nq lote to be built. ill the nOI·thwClst co:rner ot the school property. The City will pay 100' of the ¢oøt of ~he traffic lane improvemen~8 to be constructed e.loß9 Lola Drive. B!SÐ will pay 100' of the cost of the traffic lane and parking improvements alonq Susan Lee Lane. The City and aISD will share equally in the $6,445 in surveying ~nd deaiqn coets that have been incurred to date. Schedulina The City will. proceed to attempt to get t.he northernmost parking lot in the nortbweet corner of the property construoted immediately, provided a contractor can be found who commits tQ completing the lot by August 17, 1994, weather permittin9' 'Ta01 N.!:. Loop A?O P.O. Bl'x a:2010e North nlohland Hili., Texab 70182.0ðOQ USA (1)1'7) MH~GO~ FAX (817) I5G1.ßt\16 -_._---~---~--.,,-.,.._"-----~ JUL 14 '94 1'3':'§6w' ~ 'r . .. ... - - . . P.3 Paqe ''I'wO The City will also cttempt to find G c:ont~actor who will commit to conetructing th~ driving lAne improvements along Lola Drive by Au~ust 17, 1994. If the drlvinq lane improvements alon~ Lola can not be done by August 17, 1994, the City will contract tor ~his work to be done between school s~~e9ters in the summer of 1995. The City will hanóle ADd pay ~he cost of striping tho oxiatin9 head-in parking to serve ~8 driving lanes during thé 1994-95 sohool year. ßISD will con~truct· the driving lane and parking improvements alon9 Suscn Lee Larle botween Bomeøterø in the summer of 1995. The southmost parking lot in the nOt·thweet corner of tho school property will be constructed between 8emestore in the summer of 199s. If you agree that the ~bove represents the understanding reached at the rneet1n91 emt1 if BISD concurs, that this plan is 4cceptable, please have the appropriate BISD otficiol lJign in tho Bpa~e indic~tcd. below. ~efl~ Roåqer N. Line City ManageX' Holiday. Heights. RNL/gp * The enactment of this agreement will not impede of the citizens of North Richland Hills by the Medical Services Qersonnel· n9_r .lVj.1l j.~ lmp..ede SIRDVI~LE INDE~ENDENT 'SCÖOO~ DIST~I~T the protection of lives and property City's Fire, Police and Emergency the education process of the students at Holiday Heights. H;~ - 13yt T it 1 e I , Associate Superjnte'ndent of 'Fina"f"p cc: All who attended. _u .._..__...._'__~..__.~__.~"_______.~ _ ,."~~.._ . _...~__e..__..~_"..._'__..~.>__~____.~~~___~~.._. E D M · SERVICES March 20, 1995 GEORGE BaCHEFF liì, P.E. 1430 VirginÏ8 Pleoe Ft. Wolth. Texas 76107.2488 Greg Dickens, P.E. Director of Public Works City of North Richland Hills P.O. Box 820609 North Richland Hills, TX 76182..0609 Re: BISO Holiday Heights Elementary Parking Improvements EDMS Project No. 95009.p2 Dear Greg; As we discussed, the following is a proposal to provide engineering services to the City of North Richland Hills in cooperation with the Birdvìlle lSD, concerning modificatiol'iS and additions to three parking lots at Holiday Heights Elementary. It is proposed to provide the following Basic Services, Part A, Design Phase, concerning the three parking lots: A. 1 . visit with you to review project needs and direction, and meet with you as needed A.2. coordinate tha work with BISD A.3. utilize available information that may minimize time spent on the work A.4, arrange for a topographic survey to complete the work previously performed by Steve Miller Land Surveying, who will contract directly with the city A.S. prepare a base' geometric plan of each parking lot to be modified or added A.S, prepare a grading plan for each parking lot, preliminary and final A. 7. prepare a jointing plan for each parking lot, preliminary and final A.S, prepare a stripping plan for each parking lot, preliminary and final A9. incorporate reasonable review comments into preliminary and final submittals A. 1 O. provide appropriate details and notes utilizing city standards as available A.11. prepare abbreviated preliminary and final specifications and bid documents utilizing city standards as best possible A.12. provide a detailed opinion of probable total project cost for each lot 2:0 3Ð'id 338 I 1\è!3S ~¡cr3 305 T8UL T8 0l:51 5S6tiRZ/E8 Greg Dickens, P.E. Page 2, 3120/95 It is proposed to provide the folJowing B8$ic Services, Part B, Construction Phase, conceming the three parking lots: B.1. providQ contract document and plan ìnterpretation during the construction process as needed In order to perform our work as efficiently 8S possible, you will nQed to provide: a. CAD .dwg or .dxf file for AutoCAD v.12 of prior conceptual design by others b. timely availability for periodic consultation c. copies of existing city standards and specifications d. completion of topographic surveying AutoCAD .dwg or .dxf file and ascii point listing As compensation for our services, you agree to pay to EDM Services the following: 1. For Basic Services Part A, at hourly rates. estimated not to exceed $8,380. without prior written authorization. 2. For Basic Services Part B, at hourly rates, estimated not to exceed $640, without prior written authorization. 3, Addìtional Services, if required are payable at the hourly rates as shown on Attachment -A". You will be invoiced monthly based on the actual time spent for each part of the project plus reasonable reimbursable expenses, if incurred. It is estimated that the total project time will be controlled by other project participants, with des¡red construction start in late May. 1995. Our work will begin promptly upon your authorization. Thank you for the opportunity to serve you and the City of North Richland Hills. Please call if you have any questions concerning this proposal. ~ George Belcheff III, P.E. If you are in agreement with this proposal, please indicate so by signing below and returning one copy. Accepted: Title: Date: EI2 39'i7d 53::J rr\~=s "JŒ3 ;".136 r.9'::'_l1:R ~?:~T Q;~T/~7/~~ ÞVI ":!1:)\;1d ATTACHMENT "A" EDMS Hourlv Billino Rates as of January 1. 1995 Principal Engineer Engineer Technician Draftsman Clerical Reimbursable Expenses out-of-town travel, submittal reproductions, long distance telephone, facsimile transmissions, couriers, other out-of-pocket costs Sub-Consultants surveyor, analytical testing lab. soils sampling lab, geotechnical investigations. etc. Mileage S3JI^~3S WŒ3 30S T82U. T8 $75.00 $60.00 $45.00 $35.00 $20.00 Cost + 15% Cost + 10% SO. 30 gz:gr 96ET/0Z!EG STEVE MILLER LAND SURVEYING 1240 Southridge Court · Suite 102 · Hurst, Texas 76053 - 4306 (817) 282 - 7860 Metro (817) 268 . 1654 FAX (call first) (817) 268 - 1654 March 21. 1995 Mr. Mike Curtis c.r.p. Coordinator City of North Richland Hills 7301 NE Loop 820 North Richland Hills. TX 76180 Re: Holiday Heights Elementary School Dear Mr. Curtis: George Belcheff of E.D.M. Services has requested I send you this proposal to provide a topographic survey on the north. east, and west sides of the school. I have met with George at the site and we have discussed his needs. This survey can be completed at a charge of $ 1320.00. In June 1994. I did an improvement survey on about the same area for Barton-Aschman Associates, Inc. This new survey will show new improvements. grades, and be d~~wn at a different scale. Please call if you have any questions. Sincer.ely. k cnJl Steve Miller SM/ds cc: George Belcheff . . '. CITY OF NORTH RICHLAND HILLS Department: Public Works Council Meeting Date: Approve State of Texas Standard Utility Agreement Subject: for Interstate Highway 820 Interchange Project. Phase II - Agenda Number: Resolution No. 95-20 4/10/95 PH 95-17 The Texas Department of Transportation is requiring the City to execute the following three documents for each phase of the IH 820 Interchange Project in order to relocate our public water and sanitary sewer lines and receive reimbursement for all engineering and construction that qualifies. 1. Standard Utility Agreement 2. Statement (Covering Contract Work) 3. Utility Joint Use Agreement The documents simply outline the guidelines under which the City and State will operate during construction, reimbursement, and future maintenance. Recommendation: It is recommended the Council approve Resolution No. 95-20. Finance Review Source of Funds: Bonds (GO/Rev.) , Operating Budget _." , Oth . rz, Acct. Number Sufficient Funds Available cU~ ent Head Signature City Manager CITY COUNCIL ACTION ITEM Fln...ce DIreClOl Page 1 of RESOLUTION NO. 95-20 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, that: 1. The Mayor is hereby authorized to execute the Standard Utility Agreement No. U-7741, Statement (Covering Contract Work) and the Utility Joint Use Agreement with the Texas Department of Transportation for the Interstate Highway 820 Interchange Project, Phase II. PASSED AND APPROVED this the 10th day of April, 1995. APPROVED: Mayor ATTEST: Jeanette Rewis, City Secretary APPROVED AS TO FORM AND LEGALITY: Rex McEntire, Attorney for the City AFR-04-95 TUE 14:59 KNOWLTON-ENGLISH-FLOWERS FAX NO. 8173544389 p, 02 Texas Déþartntent of Transportation J:'.c>m:I D.lS-3S PQ8~ 1 6f 3 Rev. 12191 STANDARD UTILITY AGRERMENT Federal-aid .Interstate Agreement No. U-7741 County Tarrant ROW Account No. 9002-8-18 Federal Project No. I R82D -4 ( 208) 4 54 CSJ No. 0008-14-065 Highway No. I.H.820 Contract No. This Agreement by and between the Stat~ of Texas, açting by and rhrough the Texas Transponation Com- missioo, hereinafter called the State, and the C1ty of North Richland Hills· , hereinafter called the Owner, acting by and rhrough its duly authorized representative, sMll be tiffective on the date of approval and executiQn by and on behalf of the State. WHEREAS, the State bas deemed it necessary to make certain highway :improvements on the Interstate System as designated by th~ State and approved by me Federal Highway Administration generally de- scribed as follows: County Tarrant Highway r .H. 820 located from S.H. 26, F.M. 1938. and S.H. 121 ~ ;~ WHEREAS, the State will participate in the costs of adjusting, removmg or relocating certain facilities to the extent as may be ¢ligiblc for State part.i.cipatioll w1(lcr Article 6674w-4, YA.C.S.. and which COStS are eligible for Federal participation; and WHEREAS. the State will request Federal participation in payment of the costs incurred in the adjust- ing, removing or relocating of Owner's facilities under the provisions of Federal-Aid Highway Program Manual 6-6-3-1, issued by the United States Department of Transportation' s Federal Highway Administration On September 6, 1985, and amendments thereto; and WHEREAS, execution by the State will constitute approval for the Federal Highway Administration under authority of Parag.raph 11 of FHPM 6-6-3-1; and , WHEREAS. this proposed highway 1mprovement will necessitate the adjustment, removal or relocation of certain facilities of Owner as indicated in the following statement of work: Relocate potable water and sanitary sewer system faciTities in preparation for highway reconstruction. Gener~lly this work include5 approximately 2.200 linear feet of water line and appurtenðnces and 5,100 linear feet of sanitary sewer system improvements. and such work is shown in more detail in Ownerts preliminary plans, specifications and cost estimates which are attached hereto and made a part hereof, and which are prepared in the form and manner required by FHPM 6-6-3-1, and amendments thereto; and WHEREAS, the State desires to implement the adjustment, removal or relocation of Owner's facilities by entering into an agreement with said Owner as soon as possible; APR-04-95 rUE 15:00 KNOWLTON-ENGL I SH-FLOWERS FAX NO. 8173544389 p, 03 Tcxo.$ Dçp...mncnt of rnu15p<.>r1<alion Fonn D.l~·35 Page 2 of 3 RI:'(. 12191 NOW, THEREFORE, BE IT AGREED, the State will pay to the Owner the costs incurred in ad- justing, removing or relocating Owner's facilities up to the amount said costs may be eligible for State participation and wlúch costs are eligl"ble for Federal cos't panicipation. , The Owner has determined that the method to be used in developing the adjustrnent, removal or relocation costs shall be as specified for the method checked and described hereinafter: o (l) Acmal direct and related indirect costs accumulated in accordance with a work order a.ccount~ ing procedure prescribed by the applicable Federal or State regulatory botly. [X] (2) Actual direct and related inditect costs accumulated in accordance with an established account- ing procedure developed by the Owner and approved by the State. D (3) An agreed lump sum of .$ cost attached hereto. , as supported by the analysis of estimated- If costs are developed under procedure (1) or (2) as hereinbefore specified, the State will, upon satis- factory completion of the adjustment, removal or relocation and upon receipt of a final billing prepared in the fonn and manner prescribed by FHPM 6-6-3-1, and amendments thereto, make payment in the amount of ninety (90) percent of the eligible costs as shown in the final billing prior to the required audit and after such audit shall make fmal payment in an amount so that the total payments will equal the amount found eligible for State reÎtnbur3¢mcnt by the final audit. When requested, the State will make .ùltC.nl1~di<:ttc ¡roi-Y- ments at not less than monthly intervals to Owner when properly billed and such payments will not ex- ceed eighty (80) percent of the eligible cost as shown in each such billing. Intermediate payments shall not be construed as final payment for any items included in the intennediate payment. If costs are developed under procedure (3) as hereinbefore specified, the State will, upon satisfactory completion of the adjustment, removal or relocation and upon receipt of a billing prepared in acceptable fonn and manner, make payment to Owner in the agreed amount. Upon execution of this agreemem by both parties hereto, the State will, by written notice, authorize the Owner to proceed with the necessary adjustment, removal or ~location, and the Owner agrees to prose- cute such work diligently to completion in such manner a.4ï will not result in avoidable interference or delay in either the State'¡:: highway cQnstruction or in the said wode. Such authorization to proceed shall consti- tute a conunitment on the part of the State that the utility adjustment, removal or .relocation has been in- cluded in an approved program as an item of right of way acquisition or construction, that a PIOject agree~ ment which includes the. work will be executed, and that the utility adjustment, removal or relocation will be required by the final approved project agreement and plans. Form D-15-48, enclosed with Owner's preliminary estimates attached to this agreement, is approved as complying with Paragraph 9 ofFHPM 6-6-3-1 and Owner .is aUÜlOl'ueù, but not requi.æd, to (;ontra<.."t such work. The pre.liminary estimate will indicate the extent to which work is to be performed under each contract. Other work shall be contracted by Owner only with approval of the State in accordaLlce with FHPM 6-6-3-1. The Owner will Catty out said adjustment, removal or relocation, aCCUlatcly record the costs, and retain such records in accordance with applicable rules, regulations and procedures and all other prov isions of FHPM 6-6-3-1. and thð costs paid by the Stat~pur5uant to this agreement shall be fuU compensation to Owner for all costs mcuITed by Owner in making such adjustment, removal or relocation. Bills for work hereunder should be subnútted to the State not later than ninety (90) days after completion of the worle. In the event it is detennined that a substantial change from the statement of work containerl in tbis agree- ment is required, reimbursement therefor shall be limited to costs covered by a modification of tlùs agree- ment or a written change or extra work order approved by the State. APR-04-95 rUE 15:00 KNOWLTON-ENGLISH-FLOWERS FAX NO, 8173544388 P. 04 T-:1l¡U lJepanment of Tr¡¡nspottatíon Form D-1S.35 Pnge 3 of 3 R~v. 12/91 It is expressly under~tood that this agreement i~ ~ubject to cancellation by the State at any time up to the date that work under tlús agxeement has been authorized and that :iuch cancellatiun will not create any lia- bility on the part of the State. The Owner by execution of thi; agreement does not waive any of the dghls which Owner may legally have within the limits of the:: law. IN WITNESS WHEREOF, the parties hereto have affixed their signatures. Owner: CHy of North Richland Hills ,Utility ND.mC EXECUTION RECOMMENDED: By; Autho~d Sisnll.tuI'C DislIict Engineer. Texas Departmenl of Transportalion Title; Mayor Date: April 10, 1995 THE STATE OF TEXAS Certified as being executed for the purpose and effect of activating aodIor cmying out the cllrlers. established policies or we&: ptogtams heretofore approved and authorized by the Te:us Transportation Commission. By: Director of Right nf Way Te:u3 Dc:p:1t1JUCftt of TranspoIt<ltÎ.oo Date: APR-04-95 TUE 15:00 KNOWLTON-ENGLI SH-FLOWERS FAX NO. 8i73544389 P, 05 T~xas Department of Trnnsportat¡on Form D·15-48 Page 1 of 2 Rev. 12191 STATEMENT (Covering Contract Work as Appears m Preliminary Estimate) AAreement No. U-7741 County Tarrant ROW Account No. 9002-08-18 Feder~Project~o. IR820-4(208)454 CSJ No. 0008-14-065 Highway No. I . H. 820 I. Tommy Brown J a duly authorized and quilified representativc of the City of North Richla"d Hills ,hereinaft~rreferredtoasOwner,amfu11yaware of the facts and make the following statements in respect to work which will or may be done on a contract basis as appe.ars in the preliminary estimate to wlúch this statement is attached: T. It is more economical and/or expedient for Owner to contract this adjlli;trnent because: X II. Owner is not adequately staffed or equipped lO perfonn the necessary work on this project with its own forces to the extent as indicated on the preliminary estimate. Procedure to be Used in Contracting Work X A. Solicitation for bids is to be accomplished thrOUgh open advertising and contract is to be awarded to the lowest qualified bidder who submits a tn'oposal in confomùty with the requirements and specifications for the work to be pertormed. B. &>licitation forbids is to be accomplbhed by circuJarizing to a list of pre qualified oontracto~ or known qualified contractOl'S and such contract is to be a.warded to the lowest qualified bidder who submits a proposal in conformity with the requirements and specifications for the work: to be performed. Such presently known contractors are listed below: 1. 2. 3. 4. 5. APR-04-95 rUE 15:01 KNOWLTON-ENGLISH-FLOWERS FAX NO, 8173544388 P. 06 Texas Department of Tnnsportation Ponn t>·1.5-48 Page 2 of2 Rev, J2jQ1 C. The work is to be pe.tfonned under an existing continuing contract under which certain work 1S regu1ar1y perfonned for Owner and under which the lowest available costs are developed. (If amy part of the contract work: is to be done under an existing continuing contract, give derailed information by attachment hereto.) D. The utility proposes to contract outside the foregoing requirements and therefore ev:idence in snpport of its proposal is attached to the preliminary estimate in order to obtain the concurrence of the State and the Federal Highway Administration Division Engineer, where applicable, prior to taking action thereon (approval of the agreement shall be considered as approval of such proposal). Signature Meyor Tide Apri1 10) 1995 Date APR-04-95 TUE 15:01 KNOWLTON-ENGLISH-FLOWERS FAX NO, 8173544389 P.07 ","' T~IUI Dopmrtment of Tnn$pO~íon Form D-l'-8OA Page 1 of 2 Rev. 12191 Utility Joint Use Agreement (Controlled Access Highway) Agreement No. U·7741 COUNTY OF Ta rrant t } } County Tarrant Federal Project No. 1 R820-4( 20e) 454 CSJ No. 0008-14-065 ROW Account No. 9002..08-1e Highway No.1. H. 820 ~ Interchan~e w;S.H. 26, F.M. 1938 and .H. 121 THE STATE OF TEXAS WHEREAS, the State of Texas, hereinaftel: called lhe State, acting by iU1d through the Texas Depan- ment of Transportation, proposes to make certain highway improvements on that section of the above- indicated highway; and WHEREAS,the City of North Richland Hllls ,herein. after called the Owner. proposes to retain. locate or relocate certain of its facilities and retain title to any prope.ny rights it may have on, along or across, and within or over such limits of the highway right of way as indicted on the plans art3.ched to StanØard Utility Ajtreement as executed by Owner on the 10 th , day of Ap nl , 19 ~ , or on location sketches attachod hereto except as provided hereinbelow; NOW. THEREFORE. it is hereby mutually agreed that joint usage for both highway and utility purposes will be made of the area within the highway right of way limitS as such area is defmed and to the extent indicat~d on the aforementioned plans or sketches. Where Owner by reason of ownership of an easement 01' fee tiúe or orlwrwi~ under law has the right to alter, modify or add (0 facilities presently located within the area above described or constIuct additional facilities therein, such right is hereby retained, provided. however, if existing facilities are to be altered or modified or new faciIities constructed within said area the Owner agrees to notify the Texas Department of Transportation prior thereto, to furnish necessary sketches showing location, type of constroction and methods to be used for protection of traffic, and if. in the opinion of the Te:xas Department of Transportation, such alteration, modification or new construction will injure the highway or endangð1' the traveling public using said highway, the Texas Department of Transportation &hall have the right, after receipt of such notice, to prescribe such regulations as necessary for the protection of the highway facility and the traveling public usmg said highway; provided further, however, that such regulations shall not extend to the requiring of the placement of intended overhead lines underground or the routing of any lines outside of the area of joint usage above described. . Owner hereby agrees that access for servicing its facilities nonnally will be:: limited to accc:ss via: (a) frontage roads where provided, (b) nearby or adjacent public roads and Streets or (c) trails along or near the highway right of way lines, connecting oIÙY to an mtersecting road; from any one or all of which entry may be made to the outer portion of the. highway right of way. Where supports, manholes or other ap. purtenance~ of the Owner's facilities are located in medians or interchange areas, access to them from the through-traffic roadways or ramps will be permitted but only by pemrits issued by the State to the Owner setting forth the conditions for policing and other controls to protect highway users. If an emergency situation occurs and the usual means of access for service operations as herein provided will not pennit the immediate 3.ction required by the Owner in making emergency repairs as required for the safety and welfare of the public, the Owner shall have a temporary right of access to and from the throu.gh- traffic roadways and ramp as ~cessary to accomplish the required emergency repairs. APR-04-95 rUE 15:01 KNOWLTON-ENGLISH-FLOWERS FAX NO. 8173544389 P. 08 Texas Depat1lnent of Transportation Fonn D.15.80A PAge 2 of2 a...... 12191 Participation in actual costs incurred by the Owner for any future adjustment, removal or relocation of utility facilities required by highway construction &hall be in accordtmce with and to the extent possible under applicable laws of the State of Texas. Except as expressly provided herein, (1) the Owner's rights of access to the through-traffic roadways anNor ramps shall be subject to the same rules and regulations as apply to the general public, and (2) the Owner and the State, by execution of this agreement, do not waive or reI inquisb. any right wbich they may have under the law or Constitution, SUUe or Federal. In the event the Owner faUs to comply with the requirements as set out herein, the State may take such action as it deem.~ appropriate to compel compliance. IN WITNESS WHEREOF, the parties hereto have affixed their signatures. Owner: City of North Richland Hills Utility Name EXECUI10N RECOMMENDED: By: Authorized Signature DÎ$tric:t Engineer. Texas Department of Transportatioo Title; Mayor Date: Apd 1 10. 1995 THE STATE OF TEXAS Certified as beinS exeœted for the purpose and effect of activating and/or carrying out the oIden. established policies or walk programs heretofore approved and authorized by the Texas Traosportation Commis..'iioo. By: DifcçtQC of Ri.shC of W"y Tons Departm.eDt of Transpot1ati.on Date: CITY OF NORTH RICHLAND HILLS "-- Department: Public Works Council Meeting Date: 4/10/95 Subject: Award of Bid for Restoration of Old Utility Shop Building Agenda Number: PW 95-18 The Public Works Department Construction Division operates from the Service Center. Covered storage is not available for their equipment at this location. Overnight covered storage would help in keeping the equipment warm so it can start easier. The old utility shop located between Roberta and Davis Blvd. at the end of Janetta Dr. could provide storage and cover for machinery. This building is in need of repair. The metal roof needs to be replaced with a wood decking and composition shingles. The combination block and metal building is in need of a complete paint job. The following is a summary of the lowest proposals we received to accomplish the work. DECKING AND COMPOSITION SHINGLES: 1. PSN Roofing $4,431.00 2. Homecrafters Construction $5,600.00 3. Ameratex Construction $10,541.82 COMPLETE POWER WASH & PAINT EXTERIOR OF BUILDING (1 coat primer, 2 coats paint): 1. Homecrafters Construction $2,392.00 2. Custom Craftsmen $2,875.00 3. Ameratex Construction $3,044.40 4. RMI Corps $3,540.00 ) Public Works staff would like to serve as the general contractor and coordinate the restoration work. We feel this definitely will allow us to get the work done at a more reasonable cost and expedite the whole process. Funds to pay for this work could come from the project savings in Unspecified Utility CIP Fund Balance. FundinQ Source: Funds can be appropriated from Unspecified Utility Fund Balance. Total budget for the project would be as shown below. From: Unspecified Utility Fund Balanèe To: Roof Reconstruction Power Wash & Painting $6,823.00 $4,431.00 $2,392.00 Recommendation: Staff recommends Council award the bid for reconstructing the roof to PSN Roofing in the amount of $4,431.00 and award the bid for power wash and painting the building to Homecrafters Construction in the amount of $2,392.00, and the transfer of funds as indicated above. Finance Review Finance Director Page 1 of