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HomeMy WebLinkAboutCC 2008-02-25 AgendasCITY OF NORTH RICHLAND HILLS CITY COUNCIL WORK SESSION AGENDA NORTH RICHLAND HILLS CITY HALL PRE - COUNCIL CHAMBERS 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TEXAS Monday, February 25, 2008 5:45 P.M. A.1 Discuss Items from Regular City Council Meeting A.2 IR 2008 -026 Presentation by North Texas Tollway Authority Regarding Agreement to Allow TollTags to be issued in North Richland Hills (10 Minutes) A.3 IR 2008 -027 Report on Transition to Duncan Disposal (5 minutes) A.4 IR 2008 -028 Review Development Plan for the Grand Ave Park Plaza (15 Minutes) A.5 IR 2008 -029 North Richland Hills Police Department Annual Report (10 Minutes) A.6 IR 2008 -033 Update on Completion of City Council Goals and Action Items (15 minutes) B.0 EXECUTIVE SESSION - The City Council may enter into closed Executive Session to discuss the following as authorized by Chapter 551, Texas Government Code B.1 Executive Session: Deliberation Regarding Economic Development Negotiations as Authorized by Section 551.087 - South Boulevard 26 C.0 Adjournment C;Prtifirntion I do hereby certify that the above notice of meeting of the North Richland Hills City Council was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on February 22, 2008 at G�. City Secretary This facility is wheelchair accessible and accessible parking spaces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at 817 - 427 -6060 for further information. The City Council may confer privately with its attorney to seek legal advice on any matter listed on the agenda or on any matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551, Texas Government Code. February 25, 2008 — Council Agenda Page 1 of 4 CITY OF NORTH RICHLAND HILLS CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBERS 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TEXAS Monday, February 25, 2008 7:00 P.M. Copies of the full City Council agenda information packet are accessible prior to every regularly scheduled Monday Council meeting according to the following locations and schedule: ❑ Library on the Friday prior to the meeting (available electronically) ❑ City Hall on the day of the meeting (hard copy available) Additionally, the agenda packet is available for download from the City's web site at www.nrhtx.com after 5:00 p.m. on the Friday prior to every regularly scheduled Council meeting. ---------------------------------------------------------------------------------------------------------------------- - - - - -- A.0 Call to Order - Mayor Trevino A.1 Invocation - Councilman Sapp A.2 Pledge - Councilman Sapp A.3 Special Presentation(s) and Recognition(s) A.4 IR 2008 -030 Special Presentation - Certificate of Achievement for Excellence in Financial Reporting for the Comprehensive Financial Report ending September 30, 2006 A.5 Citizens Presentation An opportunity for citizens to address the City Council on matters which are not scheduled for consideration by the City Council or another City Board or Commission at a later date. In order to address the Council, please complete a Public Meeting Appearance Card and present it to the City Secretary prior to the start of the Council meeting. The Texas Open Meetings Act prohibits deliberation by the Council of any subject which is not on the posted agenda, therefore the Council will not be able to discuss or take action on items brought up during the citizens presentation. A.6 Removal of Item(s) from Consent Agenda February 25, 2008 — Council Agenda Page 2 of 4 B.0 CONSIDER APPROVAL OF CONSENT AGENDA ITEMS All consent agenda items listed below are considered to be routine items deemed to require little or no deliberation by the City Council and will be voted on in one motion. There will be no separate discussion of these items unless a Council Member so requests, in which event the item will be removed from the Consent Agenda and considered. B.1 Approval of Minutes of February 11, 2008 City Council Meeting B.2 GN 2008 -014 Reschedule the March 10 Council Meeting to March 17 and the May 26 Council Meeting to May 27 C.0 PUBLIC HEARINGS C.1 GN 2008 -017 Conduct a Public Hearing for the 34th Year Community Development Block Grant Program C.2 GN 2008 -018 Approve 34th Year (2008/2009) Community Development Block Grant Program - Resolution No. 2008 -012 (This item is not a public hearing but related to Item C.1) D.0 PLANNING AND DEVELOPMENT Items to follow do not require a public hearing. No items for this category. E.0 PUBLIC WORKS E.1 PW 2008 -006 Approve No Parking Anytime Zones along Bridge Street, Ice House Drive, and Hawk Avenue - Ordinance No. 2982 F.0 GENERAL ITEMS F.1 GN 2008 -015 Approve Agreement with North Texas Tollway Authority (NTTA) to Allow the City of North Richland Hills to Issue Tolltags - Resolution No. 2008 -011 F.2 GN 2008 -016 Presentation of Fiscal Year 2007 Audited Financial Report F.3 PU 2008 -007 Award RFP 08 -008 to DryTec Roof Consultants in the Amount of $52,320 for the Roof Consulting Services G.0 EXECUTIVE SESSION ITEMS G.1 Action on Any Item Discussed in Executive Session Listed on Work Session Agenda February 25, 2008 — Council Agenda Page 3 of 4 H.0 INFORMATION AND REPORTS H.1 Announcements - Councilman Barth H.2 Adjournment All items on the agenda are for discussion and /or action. Certification I do hereby certify that the above notice of meeting of the North Richland Hills City Council was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on February 22, 2008 at 0�1 6�K- W&&-er� City Secretary This facility is wheelchair accessible and accessible parking spaces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at 817 - 427 -6060 for further information. The City Council may confer privately with its attorney to seek legal advice on any matter listed on the agenda or on any matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551, Texas Government Code. February 25, 2008 — Council Agenda Page 4 of 4 CITY OF NORTH RICHLAND HILLS CITY COUNCIL WORK SESSION AGENDA NORTH RICHLAND HILLS CITY HALL PRE - COUNCIL CHAMBERS 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TEXAS Monday, February 25, 2008 5:45 P. M. A.1 Discuss Items from Regular City Council Meeting A.2 IR 2008 -026 Presentation by North Texas Tollway Authority Regarding Agreement to Allow TollTags to be issued in North Richland Hills (10 Minutes) A.3 IR 2008 -027 Report on Transition to Duncan,Disposal (5 minutes) A.4 IR 2008 -028 Review Development Plan for the Grand Ave Park Plaza (15 Minutes) A.5 IR 2008 -029 North Richland Hills Police Department Annual Report (10 Minutes) A.6 IR 2008 -033 Update on Completion of City Council Goals and Action Items (15 minutes) B.0 EXECUTIVE SESSION - The City Council may enter into closed Executive Session to discuss the following as authorized by Chapter 551, Texas Government Code B.1 Executive Session: Deliberation Regarding Economic Development Negotiations as Authorized by Section 551.087 - South Boulevard 26 C.0 Adjournment C:ertifinatinn I do hereby certify that the above notice of meeting of the North Richland Hills City Council was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on February 22, 2008. City Secretary This facility is wheelchair accessible and accessible parking spaces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at 817 -427 -6060 for further information. The City Council may confer privately with its attorney to seek legal advice on any matter listed on the agenda or on any matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551, Texas Government Code. CITY OF NORTH RICHLAND HILLS CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBERS 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TEXAS Monday, February 25, 2008 7:00 P.M. Copies of the full City Council agenda information packet are accessible prior to every regularly scheduled Monday Council meeting according to the following locations and schedule: ❑ Library on the Friday prior to the meeting (available electronically) ❑ City Hall on the day of the meeting (hard copy available) Additionally, the agenda packet is available for download from the City's web site at www.nrhtx.com after 5:00 p.m. on the Friday prior to every regularly scheduled Council meeting. A.0 Call to Order - Mayor Trevino A.1 Invocation - Councilman Sapp A.2 Pledge - Councilman Sapp A.3 Special Presentation(s) and Recognition(s) A.4 IR 2008 -030 Special Presentation - Certificate of Achievement for Excellence in Financial Reporting for the Comprehensive Financial Report ending September 30, 2006 A.5 Citizens Presentation An opportunity for citizens to address the City Council on matters which are not scheduled for consideration by the City Council or another City Board or Commission at a later date. In order to address the Council, please complete a Public Meeting Appearance Card and present it to the City Secretary prior to the start of the Council meeting. The Texas Open Meetings Act prohibits deliberation by the Council of any subject which is not on the posted agenda, therefore the Council will not be able to discuss or take action on items brought up during the citizens presentation. A.6 Removal of Item(s) from Consent Agenda B.0 CONSIDER APPROVAL OF CONSENT AGENDA ITEMS All consent agenda items listed below are considered to be routine items deemed to require little or no deliberation by the City Council and Will be voted on in one motion. There Will be no separate discussion of these items unless a Council Member so requests, in Which event the item will be removed from the Consent Agenda and considered. B.1 Approval of Minutes of February 11, 2008 City Council Meeting B.2 GN 2008 -014 Reschedule the March 10 Council Meeting to March 17 and the May 26 Council Meeting to May 27 C.0 PUBLIC HEARINGS C.1 GN 2008 -017 Conduct a Public Hearing for the 34th Year Community Development Block Grant Program C.2 GN 2008 -018 Approve 34th Year (200812009) Community Development Block Grant Program - Resolution No. 2008 -012 (This item is not a public hearing but related to Item C.1) D.0 PLANNING AND DEVELOPMENT Items to follow do not require a public hearing. No items for this category. E.0 PUBLIC WORKS E.1 PW 2008 -006 Approve No Parking Anytime Zones along Bridge Street, Ice House Drive, and Hawk Avenue - Ordinance No. 2982 F.0 GENERAL ITEMS F. 1 GN 2008-015 Approve Agreement with North Texas Tollway Authority (NTTA) to Allow the City of North Richland Hills to Issue ToIItags - Resolution No. 2008 -011 F.2 GN 2008 -016 Presentation of Fiscal Year 2007 Audited Financial Report F.3 PU 2008 -007 Award RFP 08 -008 to DryTec Roof Consultants in the Amount of $52,320 for the Roof Consulting Services G.0 EXECUTIVE SESSION ITEMS G.1 Action on Any Item Discussed in Executive Session Listed on Work Session Agenda H.0 INFORMATION AND REPORTS H. 1 Announcements - Councilman Barth H.2 Adjournment All items on the agenda are for discussion and /or action. Certification I do hereby certify that the above notice of meeting of the North Richland Hills City Council was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on February 22, 2008. City Secretary This facility is wheelchair accessible and accessible parking spaces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at 817 -427 -6060 for further information. The City Council may confer privately with its attorney to seek legal advice on any matter listed on the agenda or on any matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551, Texas Government Code. City of North Richland Hills City Council Work Session Meeting Agenda North Richland Hills City Hall Pre-Council Chambers 7301 Northeast Loop 820 North Richland Hills, TX 76180 Monday, February 25, 2008 5:45 P.M. A.1 Discuss Items from C,ity, Council M eeti ng A.2 I 2008-026 Presentation by, North Texas Tollway Authority Re -gardMg Ag ree me nt to Allow To I IT.ag.s to be issued in North Richland Hij.Is (10 Minutes), A.3 I R 2008-027 Re ort on Transition to Duncan Disposal ( 5 minute A.4 I 2008-028 Review Development Plan for the Grand Ave Park Plaza ( 5 M inute A.5 I R 2008-029 North Richland Hills Police Department Annual Report (10 Minutes), A.6 IR. 2008-033 U date on.Completion of City Council Goals and Action Iterns (1 minute B.0 EXECUTIVE SESSION - The Cily Council may enter into closed Executive LN Session to discuss the following as authorized by Cha,pter 551, Texas, Government Code B.1 -Executive Session: Deliberation R.egard.ing Economic Development Negotiations as Authorized by Section 551.087 - South Boulevard 26 C.0 Adjournment CITY of INFORMAL REPORT TO MAYOR AND CITE' COUNCIL No. I 200 -026 A Date: February 25, 2008 Subject: Presentation by North Texas Tollway Authority Regarding Agreement to Allow TollTags to be issued in North Richland Hills The North Texas Tollway Authority (NTTA) operates several toll facilities throughout the Metroplex including George Bush Turnpike, Dallas North Tollway, Addison Airport Toll Tunnel and Mountain Creek Lake Toll Bridge. To provide convenience for the traveling public the NTTA issues TollTags which are electronic transponders that are mounted on vehicle windshields to allow vehicles to pass through toll plazas without stopping. Citizens and the traveling public can acquire TollTags at several locations and on the Internet by initially charging $40 through a credit card. This allows day to day use of area tollways. The Tolliag can also be used for parking and access to DFW Airport and other tollways throughout Texas. The North Texas Tollway Authority is seeking to establish third party vendor programs to provide convenience for the traveling public. Several cities in Dallas and Collin County have become third party vendors and have set up kiosks for issuing TollTags. Neesh Sharma the Marketing Coordinator with NTTA will be giving a presentation at the City Council work session and regular agenda to answer questions regarding establishment of an agreement with the City of North Richland Hills to issue TollTags. Becoming a ToIITag vendor will provide convenience to our local citizens that travel and work throughout the region. Encouraging local citizens to purchase TollTags can also have a direct funding impact on our community because the North Texas Tollway Authority releases funds for general transportation improvements based the percentage of ToIITag users within each county. This agreement with NTTA is a nonexclusive distribution agreement allowing the City of North Richland Hills to issue TollTags. All transactions are done electronically over the internet. Citizens will enter appropriate information including the description of the automobile, driver's license number and credit card information on a designated computer in the Utility Billing Office. City staff will be responsible for verifying the information through an internet link and then issue the ToIITag. If this agreement is approved, Staff anticipates that a training and setup date could occur with NTTA within a couple of weeks of approval of the agreement. ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS � Neesh Sharma the Marketing Coordinator for NTTA will be available for answering questions about the proposed agreement at the City Council work session and in the regular Council meeting. Respectfully Submitted, John Pitstick Planning & Development Director INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 2008 -027 , A s..' :'41 Date: February 25, 2008 Subject: Report on Transition to Duncan Disposal Overall the transition from Allied Waste Services to Duncan Disposal is going fairly smoothly. We wanted to take this means to advise Council of the status. Residential Service Service Days/Times - Although both Duncan and the City used various methods of notifying residents of the change in residential trash and recycling days, many residents were unaware of their new collection days. The first week the City, as well as Duncan, experienced a significant number of calls from residents confused about their collection days. In most cases, Duncan made return trips to neighborhoods to collect those residences that had missed their collection on their scheduled day. Additionally, many residents are adjusting to different collection times at their homes. With Allied they may have been toward the end of a route which allowed them time to get their trash and recycling out later in the day. With Duncan some residents are now at the beginning of the route and have been caught off guard with the earlier collection times. Again, Duncan is working with those residents and returning to collect their trash and recycling in those situations. It appears that most residents are adjusting to their collection days, but there are still instances of residents not getting their trash and recycling to curb prior to Duncan's trucks arriving in their neighborhoods. These are for the most part isolated instances. In the next week or so, Duncan will discontinue returning to these residences and place notification tags at these locations reminding the residents that their materials need to be placed at the curb for collection by 7:00 a. m. Recycling Bins — Another issue generating calls to Duncan's offices is lost, stolen or the failure of residents to initially receive their recycling bin. Duncan has responded by delivering bins to those residents calling with these types of complaints. Backdoor Customers — During the first week, there was a misunderstanding regarding the placement of trash at about a dozen residences that were designated as backdoor customers. We believe all of these issues have been resolved. Wind — Duncan received numerous calls from residents regarding missing trash cans and lids. Duncan employees are trained to not dispose of cans or lids without a work order being issued. As is usually the case when there are high winds, there will be a loss of lids and cans that are unavoidable, due to the winds. ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS � Commercial Service Duncan experienced some missed collections the first week, and fewer calls the second week, but it appears as though they are settling in on the commercial sector. For the most part, Allied has removed a large number of their roll -off (temporary) containers within the City. This process will continue as those containers fill up and are removed by Allied. Duncan will inform the City on any locations where unauthorized haulers are supplying services. Some commercial customers are calling to revise their service level due to the fact that some of these businesses reduced their service level at the onset of the contract in an attempt to realize cost savings. Some of the businesses are discovering that they in fact need the higher level of service, which results in greater expense. For cardboard recycling bins, Duncan initially underestimated the number of front load cardboard recycling bins needed and experienced a two week delay in getting the containers in place. All containers should be in place by the time of the Council meeting on Monday. The shortage of containers was mainly due to the fact the City does not bill these customers so an accurate count was difficult. &TCa.0fi r Duncan has been experiencing some technical issues with their website. Their corporate offices recently relocated the emergency backup servers from Florida to Las Vegas. During this transition some vulnerability in security protocols was discovered. As a result, the online complaint form has been disabled but should be restored by the end of this week. City staff is temporarily sending complaints via direct emails to two managers in Duncan's customer service department. They in turn then log the complaint into the customer service system. Equipment Duncan will continue to operate the next several weeks with equipment borrowed from other operating entities to service the residential customers. They are on schedule to take delivery of 10 new residential vehicles in mid - March. They are operating two new commercial vehicles for the commercial sector and anticipate the delivery of a third vehicle that will be working part time on the NRH contract to compliment the two full time routes. Additionally, they anticipate the delivery of two new roll -off vehicles by mid to late March for NRH. They are currently using existing fleet vehicles for services in NRH due to the fact that this is the slow time of year for this sector of their business and the vehicles are available. I hope this information is helpful to you. We will cover this and any additional updates at Monday's work session. Respectfully Submitted, Karen Bostic Managing Director INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 2008 -028 R A Date: February 26, 2008 f Subject: Review Development Plan for the Grand Ave Park Plaza u 4 The Parka and Recreation Department is planning for the development of the Grand Ave Park Plaza located on property recently dedicated to the City by Arcadia Realty. The park is located in HomeTown at the intersection of Hawk Street and Grand Ave. A Master Development Plan has been prepared by staff and will be presented at the Council work session. The project involves the design and construction of an urban park located between The Venue at HomeTown and the Public Library. The development plan includes a central pedestrian plaza with seating, landscaped areas, shade trees, a reading area with seat walls and public art. The plan also provides for open lawn space with sidewalks, landscaping and shade trees. The Park and Recreation Board reviewed the proposed development plan at their February 4, 2008 meeting. After the presentation and thorough discussion of the plan, the Park Board demonstrated their support of the plan. Upon concurrence of the Council, staff will work with our consultant, la terra studio, to complete the construction documents and detailed plans and specifications to solicit bids for the construction of the park. A Professional Services agreement with the artist for the public art commission will be presented to Council at a future City Council meeting. Staff is seeking input from Mayor and Council regarding the proposed development plan for the Grand Ave Park Plaza. Respectfully Submitted, Vickie Loftice Director of Parks and Recreation ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS � Ta 1 SMA .... ........ r. ) 401 ......... ... 4 . . ........ SO Av IV WhA Wulf ME, Ulf' goal I tZ .3f �n,� . . . . . . . . . . . . yF lot ..... . . ..... ................................ ........... ............ .......... .......... wh ................. .... ........ r. ) 401 ......... ... 4 . . ........ SO Av IV WhA Wulf ME, Ulf' goal I tZ .3f �n,� . . . . . . . . . . . . yF lot ..... . . ..... ................................ ........... ............ .......... .......... JAM; .... ........ r. ) 401 ......... ... 4 . . ........ SO Av IV WhA Wulf ME, Ulf' goal I tZ .3f �n,� . . . . . . . . . . . . yF lot ..... . . ..... ................................ INFORMAL REPORT TO MAYOR AND CITY COUNCIL. No. 2008 -029 A Date: February s. ; ., y 25, 2008 ,t Subject: North Richland Hills Police Department Annual Report I am pleased to present the North Richland Hills Police Department Annual Report for 2007. This Annual Report provides a snapshot of the Police Department's activity during calendar 2007. It shows a variety of activity measurements indicating the effort of the dedicated Police Department employees. We have modified the format of the report in hopes that you will utilize it throughout the year as we continue to cultivate our community /police relationship. We experienced a decrease in both overall crime and Part I offenses during 2007 when compared to the previous year. These numbers are reported in traditional Uniform Crime reporting (UCR) format. However, one of our major accomplishments was the conversion to the new National Incident based Reporting System (NIBRS). This system collects data from 82 different types of offenses as compared to the eight captured in UCR. Utilizing NIBRS will allow us to obtain a better overall picture of the offenses that are occurring as well as many of the underlying symptoms and associated clues. During 2007 we embarked on some exciting and innovative programs designed to improve both our efficiency and effectiveness in searing our community. One of the most significant was the creation of our Volunteers in Policing (VIP) program. Part of this attitude of service included an expansion of our Beat Management philosophy. We also continued with this outreach by hosting a series of community meetings for each district. Other programs and accomplishments are detailed within the report. You and our community can be proud of our police department. Thanks to each member of the City Council for your continuing support. Respectfully Submitted, Jimmy Perdue Chief of Police ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS � 2007 was another exciting year in our journey of "Building Our Future... Together." This was the theme of our annual wards banquet and reflects our overall mission of working in a partnership with our citizens to maintain a safe and peaceful community. The men and women of the Forth Richland Hills Police Department believe in this philosophy and are pleased to present this report of the activities that we accomplished towards this goal. We have 4 x: modified the format of the report and hope that you will utilize it throughout the year as we continue to cultivate our r community /police relationship. The development of this relationship would not be possible without clear direction provided through excellent leadership. Mayor Oscar Trevino and the members of the North Richland Hills City Council have made the safety and '- security of our community a top priority in their agenda. Their firm and lastin commitment to the values of building a citizen partnership have allowed us to quickly promote our philosophy and ac�ieve early successes with our programs They have provided us with a solid foundation upon which to build t0 the future. Our thanks go to them and City Manager Larry Cunningham for their unwavering support and commitment to us. We experienced a decrease in both overall crime and Part I offenses during 2007 when compared to the � � previous year. These numbers are reported in traditional Uniform Crime Reporting (UCR) format. However, one of our k major accomplishments during the ear was the conversion to the new National incident Based Reporting System (NIBRS). This system collects data from 32 different types of offenses as compared to the eight captured in UCR. Utilizing NIBRS will allow us to obtain a better overall picture of the offenses that are occurring as well as many of the underlying symptoms and associated clues. Police Departments across the country are slowly converting to this FBI recommended system. ;moving to NIBRS, places us on the leading edge of law enforcement in the nation. However, since a significant number of departments have not yet changed we must convert the numbers to UCR for an accurate comparison with similar communities. During 2007 we embarked on some exciting and innovative programs designed to improve both our efficiency and effectiveness in serving our communi .Cane of the most significant was the creation of our Volunteers in Policing (VIP) program. This formal program was a natural extension for t7e countless volunteers that have served our Department for many years. It exemplifies the cooperative spirit that exists between the Police Department and the community we serve. Part of this attitude of service included an expansion of our Beat Management philosophy. As the officers have become familiar with their beat, we have begun to address individual concerns and problems within them. The inclusion of our traffic officers and property crime detectives into the program ensures the citizens are receiving a full compliment of our services in their neighborhoods. We continued with this outreach by hosting a series of community meetings for each district. These meetings are designed to highlight our message of a comp- nunity /police partnership. The many accomplishments of this past year has only emphasized how fortunate I feel to be the Chief of the North Richland Hills Police Department. I remained comforted by the spirit of cooperation and willingness to serve that is so evident throughout the department. The community is ve fortunate to have the caliber of individuals that serve in the police department everyday. They remain committed to our vision and work tireless V to accomplish our goals. Thanks go to each of them for their support of me and the mission of our agency. I l-lope that I will always make you as proud of me as I am of each of you. It is my honor to serve you and this entire community as we build our future together. z � E 2 z W MERITORIOUS SERVICE SWARD SWELIMMMMM Records Technician Ron Alexander Dispatcher Laura Hines Detective Kevin Brown Detective Shayne Ko' 2 Detective Ton? Bulger Records Technician Theresa Sy Officer Filipe Carmichael '2 Investigator Cartie, White Sergeant Aratt Glee Investigator Ed Wright Officer David Drake Investigator Gideon Yeh Officer Me WGuire nicer e riaget Harem orricer iwatt j c so Officer Bryan Bohanon Lieutenant Russ Jre Officer Filipe Carmichael Dispatcher Carissa Katekara Volunteer Ogena Collins Dispatcher Kin? Killion Sergeant Bret Dinkins Dispatcher Laura Getman Dispatcher Kristine Doshi Officer Wayne MEachran Officer David Drake Officer Me WGuire Communications Mnager Debbie Eskew Dispatcher Karen MI/en Officer Duane Ford Dispatcher Di n Skaggs Officer Brian Doer Dispatcher Jnnffer Veber Officer Tim Hennessy Officer illy Worsham CH1 EPS UNIT AWARD TRAFFIC SECTION Officer Brian Brown Officer James George Officer Filipe Carmichael Officer Rodney Mc Craw Assistant Chief Andy Kancel-commands. the Operations Bureau. The Operations Bureau consists of two divisions - the Uniformed Services Division and the Criminal Investigations Division. - The Uniformed Services Division is staffed by a captain, four lieutenants, eight sergeants, 48 patrol officers, one traffic sergeant and eight traffic officers. This division consists of two Sections - the Patrol Section and the Traffic Section. There are also three voluntary specialty units - the Special Weapons and Tactical Unit, the Honor Guard Unit, and the Bicycle Patrol Unit. The Patrol Section is organized into three Patrol Shifts Days, Evenings and Midnights. Each of the three shifts is led by a Lieutenant. The primary responsibility, of the PatrolSection is the maintenance of law and order through timely response to calls for service, preliminary investigation of criminal offenses, and apprehension of persons committing felony or n-usdemeanor crimes. Since August 2006, patrol officers have been assigned to permanent beats, and serve that beat for their six-month shift assignment. Officers in Patrol experience a shift cha fige twice a year - in Februaryand in August. Permanent beat -assignments have created more familiarity between the beat officer and the community. The, officers are encouraged to stop by and interact with students in schools on their beats; attend the D.A.R.E. graduations at schools on their beats; meet residents, attend homeowner's associations meeti ngs,.and attend neighborhood watch meetings on their assigned beats. This contemporary concept in policig° -- referred to as Beat Management - was launched as a viable means for the officers to. work in partnership with individual citizens and community groups to identify . neighborhood issues and seek viable solutions. Th6 Criminal Investigations Division (C ID) is responsible for investigating case 5'of all maior offenses. CID is or anized. into three sections. Detectives in the Property Crimes Section investigate property-related offenses ;includin g*.. auto theft, burglary, fraud and all other thefts. These: Detectives are assigned to beats, and they perform follow-up investigations regarding property and recovery of stolen property in their geographical Area. Crime Analysis: studies crime patterns and trends affecting the community. This information is used todevelop:strategies to address any emerging or ongoing crime patterns. Average Clearance Percentages - Part lCrimes . . ........ A A 76L 2007 Fmw"&a=Oi�� ltk-t) 2005 00101 013/0 10% 201,10 49.0% 144.3% 44.5% 45-5% 634% 146.3% W/o 40'/Jo W/o 60% 70% ■ NRH Violett Crimes 0 NRH Property Crimes 0 National Violent C4i 13 National Property Crimes 2003 2004 2005 2006 ZUU:f Priority 1 Priority 2 Prior The Crimes Against Persons Section conduct investigations ins ecialized areas such as violent crimes, juvenile crimes and cyber crime. Investigators V.,11 'x"'T assignedto the Crime Scene Search Unit collect and process all evidence fr ©m North Richland Hills crime scenes; provide assistance to neighboring agencies when requested and supervise: the multi agency Automated. Fingerprint Identification System (AFIS The Narcotics;Section mainly.-investigates offenses concerning, criminal:niarcotic trafficking. Investigators work narcotic offenses in North Richland Hills: as well . ..... as wor king closetv with JT6d era *d a nd State ag agencies in an attempt uce the to red flow of narcotics into our community. Crime Analysis: studies crime patterns and trends affecting the community. This information is used todevelop:strategies to address any emerging or ongoing crime patterns. Average Clearance Percentages - Part lCrimes . . ........ A A 76L 2007 Fmw"&a=Oi�� ltk-t) 2005 00101 013/0 10% 201,10 49.0% 144.3% 44.5% 45-5% 634% 146.3% W/o 40'/Jo W/o 60% 70% ■ NRH Violett Crimes 0 NRH Property Crimes 0 National Violent C4i 13 National Property Crimes 2003 2004 2005 2006 ZUU:f Priority 1 Priority 2 Prior The Traffic Section is tasked with enforcement of the traffic laws throughout the city, including city ordinances regulating traffic along with parking violations. This section conducts follow -up investigations on hit and run cases, coordinates and works special city events, and also responds to traffic complaints in congested areas, dangerous locations: and as called upon by citizens within the community. There are 12 School Crossing Guards that are assigned to the Traffic Section, and these part-time employees work all the crossing guard posts throughout the city to keep children safe going to and from school. In 2007, the North Richland Hills Police department participated in a number of programs intended to prevent accidents and make the streets. safer. These programs include the "dick It or Ticket" Program and the Selective Traffic Enforcement Program (STEP) which provides for extra DWI enforcement hours during selected time periods.. .:::........:. .::.::::....: The .Automated Red Light Enforcement Camera program began on April 30, 2007 with the installation of a camera at the southbound approach of the intersection of R.ufe Snow Dr. and Mid- -- Cities Blvd. The program included an initial 30- daywarning period during which time warning letters were issued and no fines were incurred. After the warning period expired, the City began issuing Notice of Violations requiring violators to pay the $75 civil penalty. The system is based on the issuance of a civil fine to the registered owner of the vehicle. There are no criminal penalties and any enforcement action does not impact an individual's drivees license. Annually, more than 3 million intersection crashes occur across the country, resulting in over 9,000 ate fat ' al�ties. Each year more than .l of all reported crashes and 22% of all injury crashes occur in an intersection. The purpose of this program is to increase traffic safety in the City of North Richland 14ills. At the end of 2007, there were red light enforcement cameras operational at eight intersections throughout the city. PHOTO ENFORCED MMI F ;; y' 2k: , k Assistant Chief Richard Kitchen commands the Management Services Bureau and is responsible for the Department's fiscal management and control. The activities of the Administrative Services D ivision and the Technical Services Division are coordinated through the Management Services Bureau. The Administrative Services Division is staffed by a captain, three sergeants, eight .11ilil officers and one records technician, The Division is organized into three Sections. Additionally, the Administrative Services Division is responsible for the management of awarded state and federal grants. =' "he. Professional Standards Section is responsible: fo�rlbe c pletio�n of _' back r ©und investigate ©ns° aid pre- empl+ment t: esting ©n all applicants for fl�e.Folice Department. Pr ©fesi ©nattanciards addresses "internalcntarol and cQm Ixance issues l '_ in e ti n ':alt atiQns of scoridu t h . Department em to _;.. s:; News release. ari media re :tYOn are:Iso;co� ©ir nafe throng. ; p:. . this Sectoan iixne redo tin nd ominunif relatubns are the trip priories of he fir es �t�tony --I ntit'udioiiinf the hi hi txccessful:L� - tl .,.ley:. ..... :.....° . 7 n: The Technical Services Division is staffed by a captain, two managers, three The Detention Services Section istesponsible for the safe supervisors, 10 records technicians, three property technicians, 14 dispatchers, 11 detention, control and'care f all prisoners within the j H 0 jai detention officers, and five public service officers. The Division is organized into four facility..All Detention Officers receive training, in jail sections. regulations, departmental regulations and jail standard The Property and Evidence Section is responsible for: •the procurement and management of the inventory and issuance of all police equipment; *the maintenance and accountability for the Department's vehicle fleet; #the storage, safekeeping and the ultimate disposal of all property/evidence recovered during a criminal investigation; and •the coordination and supervisory oversight of building security and facilities management. 29,000 11000 0 . . ...... ....... ............ I 1 11111.1 . ..... ... 2004 2005 2006 2007 == ONIales OFemales OTOTALARRESTS El Males' © Females 0 TOTAL DUENTIONS operating procedures to ensure . that the prisoner's. constitutional rights are not violated. This section is also responsible for proper recordinR and, testi su ted . . . . . . . . . . . n of Spec 9 DWI violators throu h the Department-'s State Certified !K". 9 Intoxil y zer Program. Additionally,,all Detention Officers. have been certified in the use of the Taser less-lethal 'per weapon. An average of 13.66 prisoners are housed day,' tst and the average stay per prisoner is 1 day, 1 hour, and 15 es an average of 15,50 n ihutes. Facility staff s6ry 0 prisoner', meals each year. ........................ . . ...... ....... ............ I 1 11111.1 . ..... ... 2004 2005 2006 2007 == ONIales OFemales OTOTALARRESTS El Males' © Females 0 TOTAL DUENTIONS a 0 a a N K a`\. a M a a 0 a C a ,fi`:`, a:. M a a C8 :w M N ,C\ M A M n: 0 a az K M M a\. W a 0 a>s M2 a x a a UEtfii2'idifiehfit7F'Itk s a 9 a v a ii' . 0 M t: w a E R K a.: 0 ie >. 9 :. \ a N a R a ff Qi ax Yir M E ?': a il> Ev ` tie rs niim riic Eior by s "t "e u t s r k o `t ice ire �ffi ,.�i an ° i t M �: a: at ti c : : .., .... ,, s kV. N C4rnrrs"catiQn5St-etion i5 to�p!ovide it nst th pos4blee\res p ans ea a.tacr: ont t xtr„tk�6 c -, k.. `?i ... i .:, a .:. .. ads r <... ass .a .... ` av: a, a Noma ':a,\� n a � :� e Rum a� a n E fz: m m 0 >�Dlllrit'ui'u�a�3iC1�ri� �s'►�1'i.LEe�:4 bicmiip �`.lf` l e-fije m a N, e e fr�e t�rtb��la� , e oti f f C-1 it r �h aU' 3iYf �i\ eqq i 1 n. . Vim.. ep Jet 44a agencies., a qVp4ej to, eclucatedonswers ; ae st array o& xff r .. «.t tr \ 'ate• S Q. m M a C t, hi l+d Pen cif *Ire com munity. -% a: a a a 0 0 a a a a x a M 0 a a a Type of 4,159 4,187 4,687 6,260 0 Assist Units 35,322 33,853 30,812 26,738 % of: Offense 2006 2007 Dec/Inc .. .. . .. ... Change. . . .... Homicide 0 2 2 200%. Theft 1,677 1,617 -60 -4% Burglary 499 ...... . ......... 418 ......................... . -81 . ........ . -16 ......... . ..... ..........:.........I ....... . . . . .... Auto Theft . .... 184 . 179 -5 -3%: gra' vat - ed '128 . . .. .. ..... 212 84 ..... ..... ........ 66% Assault ..... ....... . . ..... . ..... . ............... . .. ......... .. . ....... -- .... .......... . Robbery 41 39 -2 Rape 18 -- ------------------------------------ 24 -- - 6 33%. TOTAL 2�547 21491 -56 . . ... ......... . . . ... ............ . ........... .... . . ... . I ......... Eh 0 All Units 50,893 481,608 48,260 44,286 ---------- M Other Field Activity 4,159 4,187 4,687 6,260 0 Assist Units 35,322 33,853 30,812 26,738 E3 Traffic Stops 31$762 32,632 28,564 25$853 0 Total Activity 122,136 119,2801'12,323 '103,1 37 ............ . .. ..... .................... .. - 2004 Wof Th tit - of North Richland dills in partnership with the Tarrant C © €T`ataara €pan ISUM"fingCommunRy. created the Building Connections - Building tYam t snit y IPC2) program. This joint effort is aimed at reducing the occurrence of child abuse and neglect by reaching out to the community when we identify families in need. This program is lased upon research that indicates parents who neglect and abuse their children are socially= isolated from formal and informal support systems. BC2 has two integrated components that seek to de- isolate families at risl�- of abusing or neglecting their children. In coordination with T € --''t- and the BC-2 project, the North Richland l -lily Police Department implemented the CitVs first Family Resource Coordinator (FRC-) in 2006. 'The FRC receives referrals from the Police Department, School District and CPS S reeners of families that are at risk of neglecting ` and /or abusing their children but do not _yet meet the level necessitating statutority mandated CPS or other legal intervention. The FRC works directly with police officers and 'other emergencv services personnel so than we can act swiftIV as soon as a need is identified. The FRC makes home visits and begins connecting parents and children to a ravage of natural community resources. Since joining us in ;amid -2006, our FRC has received referrals to help over 650 families, By faciltating this program, the FRC and the North Richland Hills Police Department have another means to proactively intervene in the li=es _:. attended by more than 1,500 residents, the North Richland dills Police and Fi re Departments hostel the first annual Public Safety= Expo on (--)c tober 6, 7007. As a public service to the community, this informative event included police displays, safety and identification programs. Exhibitions LIV the Police Department included SWAT demonstrations, rappelling, and police motorcvc le drills. The exl�o provided a safe and fun environment for citizens and children to learn altllt their l'aliceeaartnuent. of "at-risk" families before anv injurious conduit is committed. We value all life. � � � r . ' �!tI From the youngest to the oldest, this is our community. . "' wA gk 'e�: E' .y: k'.' Y,xk;,z' :i xr: \ a*xs�?# e §' •\fix.: � & :° ria ' s o .h �. ci. o .f�ar:�h �..,:'� .� '��.es eari:. � �. k.,. � esa. � , .:. k� , a.. kkY. a.\ 2`xc � I'i � :� >;�a erne $_ l -dills t�fficeof E er' den n Richland �_: " K k ' e a t nt� xr :emu. < n1.a xxo .... ..., #h::`. ia: ,. +, ., S:E ..» ,,. km. \` "r" 0 :� , iii .. �:'i .£ .. Y2xk 'xkt ar: ia�r :,;i Arlo � of lit >+r�id >` , 'a::�s�;to m x rn �e s e .. "1'he rnis�sic;��t:of.hs:�i�s�t ri sG, b `r%a i� tiir1 ri rte "t : s a, preparednessq mitigation, response and:recover �: =for:ZiI krr k': � ;h »: Vii; r_ zzzk .... .. ::: >: _;r' tr � s._ hazards: Tins n sstQ ' s''a cti �;:::l she 1>Li }k} 9q.. ". `ti cl+vse .. akc + n k . � r �o�rcna ion wt th mutual aid acne rs Tar r an t �o� »t he.,. iea r ton n 6 "a . "rc�. in�'�l�e r t Mate` Ce as� °and felera�I a r� es l i, Mt.. `n t...ar `n r �� r> na x;k . >r z > ::f '. x':ea h r 4nd . ,.k, pxpgra;rrt a:> ... .. .._ >.. .. .. +bX Rkx Qkx ?}v kkz: ikkr a , f.. five include.. `h�oals 4 �tl�is of \: k., b� ate" , \1c �,+\ .�k�. .. ... �` iii` \'1� sk, `k>} a.. .,. ..v ,.. , `k+ ,�'Ser�rin ;5"the'..-Gity s : rirrtar uli;aisort��for em° end n�aria ment eme enc v sa. x... kz. ... :_. :? x:.a: .:. , >. ,;o .;.. :.:. t.< ` .i„ t�iz t and born land°+securit4 issuar Hss e�; e' � zzr lz, R car :i , . ... W .'k'ka ... W 'z4:" ... _, 3 L ♦: a�ns:::. eciti'i � 1'a�n�n ' '' ra n and =Horr�elar€:d=� _? « �Cw�ordina�n�Erriergencyi�I�ana�eme t d � p �' x ,., 3 .tier�t.tc�ris irtl'15 ». 4 > and er�e�r eri P sk ei?: z\',i >. $i' ez? .... ._. z ? ?} £z.`• ' >i 3" sx 3i}} }?t} .., �3., �:. ,... :u.,. ...r ... .._ ,., .. .... ,.. .>:. >i .., .. .,> .... .,� kx ♦ + <k a >x k,. ,gin �..,. and-disaster � lann ' } it' anon ' :.Assisting aII�Cit�r�ex�tn�entskkith��emer�n�r mitigation" ! P �' + i> W, ikzr p?? y�i=. a e ' .' 3s <d 5? » oxi . >_ ».<. .... .... .: . ... . .. .. .. >... .... V} .rIy� �t a, r;: t. } e > E. E:. *din' h eir .t � erg. e�' ,> �.., + . «,...,. ana Errs ....:............. �,.......... ... i.. N ..- M 1i ..., r'"' .a'nt 1119 Ko: - erne u :f.::, st 6- :o ::c a, sa` a .� z k ti r ac t : e �: � � �aF. S.: � .. � '.' .... �i. k a a �Cf .4 x�� i; 3i >: i.:.. xF` M >.» 1 e'. I .c t° o �Xi . „.l 1 "" r. t..f'`.. a rt ' u �� ei�t' used:` . i'. � :.�`d+ r,� r , kk. ki r, \ n. e.l ,Q, ''..? .. }xs' ,.. :;f.�SV..oavwG"Yi.>u..::w- .. One important training program offered by the tJffice of Emergency Management Homeland �.:.. Securit is the Community Emergency Response Team (CEIM program. Th is program trams R people to be better . to respond prepared F'o nd to disasters and Y ' other emergency situations: CER T Ys a group of 'heap to L-�e able to function as firsttes on ers Burin a volunteers. trained s e�c rl P P � ` fire lice and EMS units arrive on the scene which could disaster until professional ! .f P� ran a fr ©m° a few minutes to a hours. CEPT training consists of a roxt atel 44 l; � PP �` h ours of class r oom and hands-on ex erence; This � r am P romotes a partnership between emergency service providers .....�,,.... and the community they serge. Emergency responders are the instructors for CERT . trainin Upon completion of trainin x." g I?o . P � C ER.T members are then worked into the emergency response �R a matrix of the Cr 't of North .Richland Hills. When emer ncies , V happen, CER.T members can give critical support to first P responders rovide`imimediate assistance to Victims and P organize spontaneous volunteers at a disaster site. CER.T members can also help with non-emergency projects that help improve the safety of the community. If a disaster o r emergency strikes o Richland Hills.and overwhelms or delays emergency North resonders CERT members will be activated" b the EOC. CE T members Will. a l p ! � IMP � their skills to. help save and sustain lives until help arrives. P P t s: 1971-1974 I naml 1975-1978 1978-1982 1983-1994 1995 - present . . ........ 14, X. k .4 . . ........ I ....... 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' .. >f,.,~ ~ ;s, ~. `fir ` ~: , o. .., 'v. .:..ems. .. ; .. ... .. ":. r .:. ,. < : r. ~: ... ... .. ; :::4 %~ a ~. .. ... .K. . .:.::. .. .::.::.........:'.: ::.::., :.::.; ,; ;.:.: ~. ,: :::. ~''' ...::, v.,.~::,:::::.::. .::::.... ... ..... ;.>::::....v:.:;; . ...~: ::::::3:i;;. ,~~ .:. ....:::.: . ;;y': ,~ <:Eze: ~„ ~. 5;'t: :'~. ,. 3"o-} :::k:.: r... ::6 :::k~:: ~;. y~..::.:;1'~ ;;v . y .~., Il'~FC~RfAL REPC-RT TC~ I~IA~'~R Al'JD CITE C€~tJI~JCIL No. IR ~oo~o ~; s .. °: E.~~ Date: February 2~, ~oo~ ~4,.:~w ~; ;, ' .:,, Subject: Update on Completion of City Council foals and fiction Items City Council updated its goals and objectives at a workshop in ~lovember ooh. The Council's eight goals include: • duality Community Development and Revitalisation • Efficient and Effective Transportation system • Safety and Security • Financial Stability • preserve Positive City 1 mage • A Sense of Communifiy • Targeted Economic Development • Local and Regions 1 Leadership objectives were created from the goals as means to achieve those goals. In the winter and spring of ~~o?, staff reviewed the Council goals and objectives and created action items to meet those goals and objectives. Staff created gg action items. Each action item was created because staff believed that if the City completed those tasks it would be meeting the goals set by Council. The action items were reviewed with Council in April ~oU?. of those 99 action items: • 5~ items are ongoing, or projects staff continually works on. Such items include reviewing ordinances to improve planning standards, conducting exercises to reduce turn out time at fire stations and researching the market to determine business opportunities. • 24 items are complete. Those items include identifying possible locations for rail sites, updating fund plans and completing the Parks Master Plan. • ~ 7 items are in progress, or projects where significant work has been done, but the project is not yet complete. I n progress items include identifying alternative traffic routes for the widening of Loop 82~, completing emergency training for specific employees and construction of the new library. ISSUED BY THE CITY MANAGER NGRTH RICHLAND HILLS, TEXAS ~ • 6 items are not complete, or projects that have little or no progress made to them. Some of these projects include ones that have been reconsidered as action items. Items that are not complete include general grant training, creation of a Citizens' Academy and construction of an amphitheatre. A list of all goals, objectives and status of action items is included on the following pages. Council will continue to be updated quarterly on the progress of the action items. Respectfully Submitted, Elizabeth Reining Assistant to the City Manager v 0 ~ ' ~~ ~~/ jy ~ _. ~S L ~C Qa ~ Q1 4? ~ ~ '~ '~ L « ~ Fx ~ N ~ O ~ N ~ O ~ N ~ ~ ~ ~ p ~- U) L +~ O ~ y- ~ ~ U O C~ ~~ ~~ .a O C .~ m dj ~ p :-. ,F, U G Rf .. _ ~ C N ~ ~ ~ O ~ Q} N ~ ~ Q ~ '~ t+ ~ C ~? ~ f!J l0 C ~ ~ ~ w ~ C ~ :- ~ to Rf ~ C N y ~ C ~ .~ Qf ~~ ~ ~ ~~ aro o~ rn a~ c~ ro ~~ ~ ~33 ~' ~a~ cR E=~ f+ ~ ~ `1 :7 ~ ~ {SS ~ O N ((S ~ ~ ~ ~ C1 ~ ~ .C 47 L ~ C Rf Q ~ Q' y., $ Cam} ~ ~ +~ ~y ~ .r ~.-. C] Cat N ~ v ~ ~ ~~ ~ E ~v c ~ ~ C (;I V N ~ ~ .fl ~ ~ ~ ~ 41 O ~ - ~ ~ ~ ~ Rf ~ ~ ~ t C - ~ t ~ ~ ~~ 3 el0 m O ~ ~ RI N ~ O Q - ~ ~ ~ ~ > C ~ ~ C ~ ~ .~• ~ ~ ~ O ~ ~ ~ C 3 t3 N tU ~ ~ t!! ~. 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U QI C ~ .fll r-. ~ °- °' ~ ~ ~ ~~ E ~~ I' ~ ~ ~ ~ _- ~~~~ m a~. x ~ v N G1 ~ ~. ~ ~ ~ ~ Cl~ ~ ~ U CO O ~~ -' ~ ~ LLI f ~ ~ 4 L ' ~ ~ ~ "' ~ ~ GLL ~ V `~ C N ~ ~ =~ ~ ~ ~ ~ ~ ~ ~ ,~ p ~' lp 4D ~ p t ~ y ~ 4= ~ ~ U N } U f4 ~ ~ 7 CV C O QI ~ C ~ C~ ~~ p ~ ~ ~ cd C of cz ~ w ~ .~. ~ „ vs ~ .a c T3 LL ~ ~ ~ ~ E ~ ~ o as ~ d1 O ~ ~ ~, a ~_, ~«- o~-~ ~ o ~ v,~ ~U N ~ _ ~ Q1 ' C LL O O 7~ ~ D ~- 4 ~ ~ ~ ~ c~lF ~ ~ ~ ~ m <C ~ ~ U ~ ~ ~ O Q ~ ~ ~ 7 ~~ •~ ~ ~ ~ r ~ O ~ L C t!1 ~~ . c ri '~ c~ m ~ ~ ~ ~ u> 0 ~c ,., N ~ . c !11 'a (t}} ~ d3 to .W C ~ O '~' Q __ ~ ~ ~ ~ "~ ~ ~ O ,pp oQu.o ~ p ~ f0 N ~ ~ ~ ~ ¢ '~ E ~ Q. ~ ~- ~ C Q ~ m ~ o c ~ o ~ ~~ ~ ~ . 9~? ~. ~ ~ ~ ~. ~ ~ ~ ~ _ ~ ~ ~ ~ ~ O K3 ~. ~ Q a ~ ~ ~ ~ Y -L ~ ~ ~ ~ a~ ~ ~ 0 N ~ ~ G a ~ +~ C ~ Q o ~ o N ~ ~c n U o U ~ ~~ ~ c~ t0 a °' ~o N N N C d 1~ O`3 a .~ E U R C _~ E LD O a~ N a 0 U w ~7 {A 4 O C ,O N ~ tl}~ 7 4 ~ a ~ v _ ~ ~ a ~ ~ c ~ .~ ~~ O N~.r' tG > 41 LL ~~r ~ ~ as c ~ ~ ~~ 6 C~ ~ "~ LL .a~~ ~ y a o ~ N v d a a~ as ~ c N O C ~ .~ N Q `? U 3 ~ N C ~ N ~ O ~.- ~' ~ ~v ~ to C .~ N ~ ~ U Ill Q O ~~~ ca ~ o U ~ L} ~ ~ ~ ct ~ ~ o ~ ~ ~ W G ~ Q U ~ i a [.3 c a 0 c a~ t4 tl~ u. w c ~ U ,~ C N U ~ o ~ U ~ N ~ L ~ O L U ~ ~~ 0 ;moo ~ ~ N ~~ai m _~ U.. N a Q 7 ~~Q ^~ ~ L W ~' Q ~ ~ t"n o ~i ~ ~ ~ d '~ ~ G3 f2 C a U O ~ U ~w ~_ ~ E ~ a ~~ N ~~ Y U O l~9 ~ V ~ ~~ ~ ~ U ~ tlJ C ~ O ~ ~~ ~ c~ ~ .V ~ C -V ~ O ~ ~ ~'=' ~ C C~3 C ~ ~ ~ tU W ~ ~ ~ +/1 0. ~' ~J ~ ~ ~ ~ C L ° ~ a ~ ~ • - ~~ W 6" ~ ~j { ! ~ ~ ~~ ~ ~ w ~ aE. ~ ~ w N ~ ~ ~ N d a~ a ao Q v N O N N ~. Q~ .~ i i C ~ ,~ I~ .r ~ ~ N Q ~ ~ _ C7 a N ~ 'v ~ 'p O ~ C ~ ~ ~ ~ ~ N .j N ~ ~ Q ~ ~ O. U .~ C . -C , .r ~ ~ ~ ~ ~ ~~ c ~~ ~ _ o ~ C ` ~ ~ ~ ~ ~ N „3 ~1 ~ ~ N '~ ~ ~ "" C ~ ~ ~ ~ r=' d ~ C~ a~ ~ _ C Q ~ ~ .~!+ ~ ~ ~ C ~ ~ !X. ~ O ~ ~U = ~ ~ rU r7 47 ~ ~ ~~ ~ ~ 7 l cv ~ ~ N 'O ai ~ ~ C = #.' ~~ ~ N .u ~ ~ ~q!: ~. N C ~ ~ C ~ ~ ~ ~ .C Q ~ C U a } ~» ~ I u. ca o w ° ~ c1) r~ c.~ ~ cn I- t L a 0 : ~ as a ~ ~ a~ ~ ~ ~' ~ m U ~' v ~ o a ~ ~ ~ w c ~ ~ ~ U ~ ~' ~' W co .Q ,~ _ ~ ~ o ~ ~ ~, ~ a 'U ~ ~ ~a~ ~'~ ~ x ~ $ m ~ EE ~ ~ c- ~~ c ~ °o~ ~~ v, ~ °~~ ~ ~~ '° jai {O 'c ~ C4 C W C4 d1 N C ~ ~ c ~ O fli C ' te- ~ G ~ G C ~ a .. t~ ~1 ~ a> N ~- ~ m u3 ~ ~ :~ ~ C ° '~ U as ~ ..r ,~ ~ as :_. ,r ~'= o `~~ ~ Q ° a U U[~ii U~ •` Vi .. c4 ~.. 3 u d0 I I ~ ~ I 4 U ~ ~ a ~ ' ~ r~ r ~' ~ = N a} ~ Q} r..~ of ~ ~ c ~ ~ ~ ~ ~ ~ 4? ~ E ~ ~ U' U N 0 N c~ a aD a 0 N 4 N N 0. N O .~ V ~ ~ .E sx .~ o _a ~ ~ X41 t o ~~ ~C ~ Ch ~ O dr p ~ ~ G ~ o o c~ ~ p, ,~ Q> U ~ p L ~ ~ tit d C ~} {O Q O V W 7. ~ +-. uJ ~ ~, C ~ td C ~ ~ ~ to GO ~ O ~ ~ ~ O V) ~ a ~ C C C C ~. ~ ~ ~} ~ ~ O ~ ~ t/S N C ~ U ~- c 'v ~ ~ ~-° W~`L a~~i `a~- ~'m~ td~ v ~ r1 ~ LPL v o ~ di am d! L ~ ~ ~ .....c aa~ ~ p ~ ~ C ril ~ ~ C ~ "' ~ ~ ~ ~ ' ~ ~ ~ ~ ;~ ~ E ~ a~ C ~ ~~ c o ~ ~ ~ ~ o ~ .~ ~ ~ ~ O ~ C C ~ ~ ~ C O ~ ~ ~ L ~ y 7 ~ ~ O U 'C ~ ~ ~ ~ C ~ T' u , ~ ' Q U ~ ~ ~ fA u~ .` N ~ ~ ~ `~ Q1 .a Q ~ Q1 ~ L 'O '~ ~ c ~ ~ ~ ~ 3 o c ~` ~ ° uv ~ ~ s c .~ ~} a di ~ ~ O a ~ ? ~ of 3 ~ ~ ~ ~ $ ,~ O ~ ~ ~ ~ ~ sn~ ~ ~'~'~ ~ca~ ?off . o .,v,~~ n~i3~~~~ 0 m~c~ . ~~L ~ya~'c`~a~~ G O v3'- °7 ~ N ~I ~' ~ ~ ~ ~ ~ ~ ~ C ~Y ' ~ ~ ~~ a ~ ~o Q? 'a C1 ~ ..+ 'o ~ a Cl ~ ~ {~ ~ Q ~ Q O CJ N ~ ~ C O 1_ t~ C ~ ~ ~ ~ C O Q7 U ~ Ur Q ~ ~ ~ Y o ~ ~ ~ ~ ;. w ~ .Q ~ = co cn v, E ~ a U Z t `~,~ '- ~ fA ~ ~ L. ~' a1 ~ .ar ~ ~ E c ~ d} ~ _ ~ ~ D C m `~ O ~ C E a ~c v v~ c~ E a ~~ ~ ~' ~ ~~ ~a ~Q- ~o cE C ~, .o~ ~ 3 ~~'-' ` l0 '~ tT c 'ta ~ l~ +~ a ~ G_ rn~ O 7 a ~ o ~ ~ .r ~ ~ '~ ~ a t~. C ~ d ,.. C ~ ~ C ,~, 'n ~ c~ Q1 ~ ~ ~ ,~, ~ +~' N ~ r» ~ C ~ _ ~ ~ ^ 4 ~ ~ O ~ Qy - ~ rn ~ ~' ~ -~ C~ d} ~ t N N Cr C ~ ~ +~ C ~ ~ C ~ : ~ ~ ~ W~ U W i ~,V V v > Rs i9 uy ,~ L ~ ~ C7 a rn ~ ~ ~ m c u ~ x ~ ~ ~ c a ~ a~ ~ ~ ~ ` ~ C N ~ m E ~ Qty ~ c ~ ~ ~ ~ ~ ~ ~ ~ti ~ O {S! ~ ~ t~ ~ y Z 3 V ~ ~ . C ~ ~ fn ~ d1 0. f~ N l~ r w- Q 41 CU O 0 0 a f ~ y. ~ '~ ~ t ... as p ~+ ~ ~ ~ ~ c rn ~ -~ o ~ r~ -C ~ :~ ~ °' E ~ v ~ ~ vj rn c c c ~o coax ~ V7 c c~ c a~ °'~•E~19v ~ ~~ o O _ E ... o ~ ~ •~ ctf ~ E ~ ~ ~ ~pp ~ ~ U N~ ~ ~ ~ P .c ~ UJ ~" ~ ~' ~ ~ ~ O Q ,~ ~ C C ~ U ~ (G ~ ~ ~ Q. ~ C ~ ~ 41 ~ a C „~ ~ tl~l ~ ~7 .~.. ~ .N Q? ..-~ Q1 ~ {p E 0 ~ N ~ .~~ ~ t ~ --~ VY ~ J . C Q y ~ + a ~ ~ c~ N ~ ~ ~ ~1 O > ~ c ~ v d ~ ~ Q. ~ (~ ~ U cv c ~_ ~ ~ ~ vi o~w .~ i _ y g = Q O ~ , d ~ a ,~ O c ~ a A, A 1 W ~ ~ N ~~ ~ ~ ~ } 7 ~ G O ~ ~ ~ G ~ a ~~~ ~oQa ~ 7 Q ~ ~ N ~m mE~vi ' ' N l~ ~- ~ ~_ N ,_ y, a~~~~rnE~a~ _U C Q ~~c~ t~ ~.p ~ C p = ~- ~ V7 ~ o~~ ~ C ~'N ~ C ~ O Q ~ ~ ~ ~~ ~~ O ~L C ~ ~ ~_ Q ~ ~ ?, ~ ~~ ~ a. ~ O Y ~ ~ N O ~ ~ ~ U _ fd ~ Z7 ~ W O. ~ ~ i~ C ' ~ ~ L ~~ tl5 "O t0 4? ~•. U ~ ~ ~ d7 ~ pry E ~ y ~ Q ~4Y N ~ ~ a :.. ~ N Q C _~ Y i~ ~_ G7 ~ ~ ~ •~ .N ~ ~ C l~ E A N ~ ~ ~ r~ '~ ~o C o N d} ~ t~ o cv ~ 3 $ ~~ a ~ N ~ CL ~ n ~~, ~ E ~ ~ n w ~3 ova t'n ~ rA ~ r 3 ~ cn c~ 0 w ~ ~ v;~ E a~ E w V Q O U U U l ~ I C S'JO C _ ~ ~ L Q U -- ~ N ~"~ ti ~ = c4 +4+ c v O U ~ ~ N~ ~ ~ - cd oai~ tea' ~ U c ~~ ~ ~ ~ Q} N G. ~ .~?+~ ~ ~ ~ V ~ L ~ ti.. rna ~ ~ ~ ~ ~ O c ~ c vi av to ~ fly ~ ~ E t L "' ~ C a ~~.~ a~i ~ ~ ~ ~ ~ ~ ~~ y. ~ Oyd c~~ oa ~ ~ as ~ ~ ~ .x w «' o ~ n ~ ~ ~ O Q ~ ~ Q ~e ~ ti C . } O o {n ~ ~ 43 Q ~ ~ ~ N ~ ~ '~ O ~ a1 ~ ~ C •~ ~ r~.r ~= y Q d C~ 0 ~~ D d7 O ~~ t ~ ~ ~ U~ ffc~U 3 U ~ a. EU ate. ~ ~ ~ ~ ~' ~. ~ a o ° ' ~ ~ ~ ~ ~ s~ H N ~ ~ ~ t~ ~ ~ C7 a ~ ~ ~ a .U y d N U ~ ~ ~ ~ ~ ~ ~ ~ 7 ~ ~ ~ ~ Q o~ ~= ~" ~ ~ ~ ~ o w _~ M 0 T~T {V 0. ao a 0 N N ° ~O U °- ~ `' N ~ ~ ~ ~ ~ tiZ o~ ~ ¢ ~~ a7 a~i ~ ~ ~ y~l~- ~ y ~ a~ ~ ~ ~' ~ ~ ~ ~ 4: N o ~N _ ~ 3 ca ~ o m ~ t ~ ` o 6 ~ ~ ~ ~ p c ~ ~ ° Q ~ '~ C ' • ~ ~ ~ '~ r c~ ~ ~ ~ ~ ~ ~~y . ~ c ~ ~~ a ~~~ __ ~ jV1 AE y t~y'C ~~ ~ ~~ ~ ~ ~ ~ ~'~ ~ = c ~ I ~ ~ ~ ~ o.N ~ ~ E~~ > > C 7 {} .p ~Z~~~~~ v b q ~rn ~ ~ O to ~~~ ~ ~ ~ j x ~as~~~~a ~ E • .o ~ ~ '~ ~ o •~ ~, ~ ~ o ~ J ~ ~ ~ ~ ~ ~ .N ~ w ,~ a ~ p ~ p ~ ~m o ~_ ~rnQ ~'t:s-o ~ ~ ~ ~ ~ ~ c ~ a.~ ~ ~ ~~ c t ~~ U~ ~ ~ v~ ~ ~~~ ~ rn d Oa td ~ ~ OC U •~ a ~ Q C7 , ~ V d0 E m old ~ ~ ~ cn eI~ : ~ ,c~ ~I o a c' ~ rn ~ ~ Q Q t~ , ~ • o c ~' 'o ~~ •Q . W ~= c ~ ~ I~ Q O U U ~ ~ ~ N N ~ ~ v ~ ~ ~ s= a> ~ ~ y ~ N N ~ ° a~ C~ °' ~ O ~ ~ ~ a ~ ~ ~ ~ L._~ m U ~] ~~ '~ ~ Q ~ ~ ~ ~ N ~ d O q~,l ~ ~ ~C O m C ~ ~ C w ` ° ti-- ~ vJ ~ 'C ~ O +~ ~ '" 7 C E E ~ ~ E ~ wo - ~~ ~ ~ o ~ >, ~~ ~,~ ~ ~ rn ~ ~ ~ ~ ~ ~ ~? ~ 41 {4 ~` • ~ ~ t0 ~ ~ O ~ f!f a. ~ n ° ~ ,~ ~ ~ ~ U ~ ~ •~ C o 'U ~~~ v' on ~ Y3 y ~ ~ ~~ ~ a ~a ~~._ ~ a v, ~ "- ~~ a~ ~~ ~o ~ • ~ ~ ~ ~ ~ C cc ~ C ~ ~ ~ r C ~ N ~ ~ O ~ a} U 47 ~ ~ ..+ ~ 4 ~ ~ ~ _ ~ ~ ~ ~ 3 ~ ~ ~ ~ Ql _ C of y G ~ ~ ~.. 'F- ~ I ~ w. a ~ ~ U ~ O ~ d1 V 4 t7 O ~ ~ ~ +~ ~ ~ O ~ ti C3 C C C) c~ ~ ~O _ ~ ~ (,) sz ~ cti N U V ~ D i1 c lA ~ .F., ~ ~ ~ ~ =' L? ~ ~ b ~ ~ ~ N .C ~ ~ ~. N ~ ~ ~ ~ ~ ._ ~ ~ I L ` = ~ ` l• .O ~ ~ m '~ :] 47 C C C ~ ~ ~ ~ ~ ~ ~ ~ C ~ L ~ Q N a~ a ao 1 1 N 0. ~? r~ V .~ a V C~ ~~ ~ I` U.. .j' ~a ~~ °.r' 0 m ~ ~ Q ~_ ~ CU t ~~ y .~ C a m m L a ~ ~~ ~~ o~ ~o ~~a m y ~ C ~ ~ X Q ~ J }~ N ~ is O L ~ ~ t Ea ~ ~H'~ fop a ~ ~ ~ a d ~~'c m ~ a~ - ca ~~~ ~~~ w fi ~ Q J O ~ t [p ~ ~ ~ ,` ~ ~QI s ~~ ?' y~~ ~c ~ ~3 y ,~ ~ U ~ V ~ ~ ~ rte., ~ O ~ ~ ~ V 'n tlo N Q ~ N O C Q ~ U3 ~ •~ ~ a 0 U ~ ~ Ctl ~ ~ d. ~ '~ c a ,c ~~ v ~ ~ ~~ C ~ .~ .~ a U ~ ~ Q7 Q 0 U E $' ~ U~ Q "" ~ ~ ~_ ~ ~ ~} N oL ~n~ ~~~ ~ ~, o ~ ~ ~ g o U ~ ~ ~ .r ~ N ~ i ~ ~ ~ ~ ~~ ~ ~ a 0 o ro a `-° ~~ C ~~ N J r .~ ~ (n t~ N Q. 0 U N O O N ti Cl G U C a V _~ i~ ~ ~ Nr ~ [9 C ~ ~ .~ a~ ~ ~~ ar ~ ~ ~ ~ ~ ~~~ ~ ~ ~ .~1 ~ C ~ ~ ~ _t~ ~C ` ~ C V ~ ~ ~.~~ ~~ ~ ~ N ~ ~ ~ c Q fr! 0 ar a 0 0 cv Q N CV _ O t= o ~n ~ N = o cfl ~_ o ~ ~ ~ = pt2 ~ p.~ = 0? ~~=Z7 ~"~ Q1 ~ O ~ ~ .,.. to v .~ N .~ a`~ ~ m ~ ,4; y ~ ,~ ~ ~ ~ :~ ~ ~ U ~ v, ~ ~ ~ f~ ~ ~ U O m -C ~ ~ O ~ ~ ';q Z7 p t0 p ~ U ~ m ~ O p ~ ~ D U ~ .~ Qy ~ Q ti Z7 ~ ~- ~ = ~ vY O ~ ~rn o ~ as ca a~ ~ ~ ~, c ar ~ ~ . ,_ ~ t = lO p Vi ~ ~ Q _ v p ~ O C ~ V ~ ~ ~ iJ ;~ N ~ ¢ O N Z iA ~ ~ ~ s] ~ ~ Q N ~~.+ Q ~ N ~ O. Uf ~ ~ '~ iA t4 ~ ~ € ~ ~ U Vi h cg c c r v ~ ~ ~ d ~ Y ~ ~ yr Q ~ 2 O ~r ~ ^ a ti ~ ~ C3 a ~~ O ~ p n~ ~ ~ ~ ~ E ~' ~ a~ ~ E rn a~ {~ o a ~ 'o 'o C3 0 a E ~ ~~ ~ ~ c w ~ U ~ a O Z O ~ U Vl ~ ~ ~ ~I ~ E ~ o~~~ ~ ~ ~~ i~ L ~ ~ ~ c ~ ~ ~ ~ ~ O ~ ~ .~ p ~ ~~ .~G ~ ~ ~ ~ ~ 'rQ'. ~ v ~ ~ ~ ~ ~ ~ ~ ~ W ~ ~ ~ V ~~ Y G ¢.r C~ Q ~ S C~ pp ~ p a7 ... N .~„ ~~ O V N ~ 4j 4y N N N Q ~~ ~s ~ v ~ a~x ~ ~ ~ o m E~~ w a n~i _ ~ ~ r.+ ~ O' f/] C Ql C!i "_~ ~ E L 41 CpY O_ ~ ~ = p ~ _y OD E C ` ~ ~ p ~ ~ D ~ a U ~ ~ U ~ ~ ~ W ~ Q U C3 a ca., ~ a a L3 a`. n. E ~ .~ a c ~ ~ Q. ov e.~ O ~; ~ ~ ~ ~ u.~ ~ V _ ~ ~ _ ~ ~ ~~ ~ C N ++ ~I ,~ ~ ~ ~ ~ ~: ~ ¢ ~ U 7 3 r ~ {d l9 a~ ~,' ~ tD d Qj {], C~ .~ ~ ~~ (~ C70 U ~a u`i$ N P a~ ~v eo 0 N N N N y ~ C ~.. y = ~ y ~ S ~ z ~ ~ ~ w C O ~ (~ ~ G . N (~ Qy _ ~ ~ ~ G C _ ~ N ~ N ~ '~ ~ `~ O a0 s f1 fl.a ~ r ~ C_1 ~ ~ ~ ~~ N O ~L17 q!~~ ~ U ~ ~~ ~ ~ ~ o ... ~ ~ a ~~~ ~ 1~ ~, oUa ~ ~ 'di~cn~ ~ ar ~ ~ Q ~ ~ ~ ~ d? ~ ~ ~ C ~ ~ ~ ! ~_ ~ ~ LL t ~ N y ~ ~ ~ UY Q O Q Y ~ {~ ~ 'L T r N .~ 'Q V '~ ~ O ~ ~' ~ ~ ~ (GU 16 ~. w. ~ ~ .b ~ N ~ •~ d ~ ~} QO Ck C O Q ~ Y ~ ~ to .sc O N C w O ~ O ~ ~ ON'y ~ [!J o ~ ~ ~ Z ~ tra .y G ~N GO m ~ ~ ° N 'm ~ ~' ~ ~ O ~ ~ r ~ ~ = C ~~ a> w c~ ~ nor N ~ yo-~~ ~ ~ N N ~ c~ia~ o~ ~ N !,L U ~ ?r ~ U 0.N N LL ~ ICS C[1 N .Q (~ r !- .1J J CL O. v, ~ C C ~ ~ C~ ,U 'Q 'a U -v ' d ,..: ~' lii Z c' tJ c ~ O Z ~ Q o U o U ~ N I= N 0 ~ (A ~ ~ N ;.., O ~ ~ to Cj CS m __ Iti ~ ~ ~ G ~ ~_ ~ S? U N N c eZ ~ C ~ ,~ ` ~ ~ V Z - o ~ ~ ~ O ~- ~ G pCo O D1 C E ~ as ~ ~ ,~ ~ ~ ~ o ~ _ o,. ~ }. c o y: ~ ~ O ~ J ~ O ~ ~' '~ O ~ ~ :. C ~ o ~>E ~: CU cn ao~ ? ~ ~ ~ m ~;~ ~ ~ ~ ~ ~ ~ ~ ~ ~ C ~ c~ O R ~ ~ a ~ .G; ~7 u~ ~ c O ~ c` 0. ~ fA ~ ~ V} ~ ~ N c ai ~. ' G : ' ~ L ~ ~ o dJ ~ ~ 'fl O G Cr ~ ' ' `~ . _ p_ L~ a. ~ f ~. ~ Q m ~ Q O ~ ~ ~ any} ~ ~ ~''~ ~ y ~ ~ ~~ 41 7 C s ~ ~~ ~ ~ ~ ~' a} _ ~= O ~' y ~~ ~ o o~ Q1 ~ U c c~ a ~ d d ~ U Q c Q y -~ C7 0 t, Qo V Q] E O ~ G ~~ ~ f!J •LLI ~ O ~ Q cw0 U V m m c~ U ~ rn (n c U ~ ~ ~ ~ ~+ ~ ~ ~ ~ .^ y s~ c ~ ._ ~ ~ ~ ~ N C~ a ° ~ ~° CS U O ~ d QI ~ a ~~ , ~ ~ Q ~ 0.~ N D N rn s~ 0. op Q 0 N O N {V ~ -~ _ ~ O O~ c ~ N C V C ~ ~ ~ ,_ ~ .~ ~ E ~ ~ ~ v E ~ .~ ~ ~ D? N [O ~ ~ tl) .~. ~~D U ~ op ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ c ~ ~ ~ E o ~ N ~ $ ~ ~~ ~ ~~ E~~ ~ ~ c ~ ~ ~ v_c ~ ~ ~~ti ~Ea~'i r3o 3~a>~c ~~ ~~ E ~ ~ •. ~ ~ DoE c ~~ ~ v~ to ~ ~ ~ ~~;~'~~ ~ ~ ~ cd ~.~ G o;• ~ c~ ~ "~ , p Uw ~ ~ C 7 ~ 0 ~ U = Qf ~ ~ ~ ~ C E ~ ~ d H ~ U ~ ~ ~ 4? Q ~ m ~ ~ U H '~ VJ t _} C O _~~ d ~ ~ ~ C ~1 CI ~ U n w U O O t7 O O C3 c m vs cn ~ d ~ m u~i ~ c ,~ c ~ ~ Q ~ ;~ ~ ~ ~ 0 ~ ~ L y., ~ ~ ~ n ~~ U~F ate' o~~o F ~ a~ UEu, `~'~ cQ~~ ~ O ~ ~ ~ ~ ~ ,C C 41 a. 14 ~~ ? ~S C ~ ~ ~ m ~ pq ~ ~ ~ U ~ dy q) ~ ~ ~~ ~ ~ Q ~ q) ~~ ~ 'C ~[ i ~ ~ W Y •~• L• ~ E ~ ~ L .C~ ~I Y OV i i i _ ~ ~ ~ G ~ ~ '~ L ~ ~ N Q r~ ~ ~ ~ = ~~ ~ c ~ ~~ a} ~ ~ c a E O~ 4 ~ ~ p nf ~ O v 0. a ~..~ C ~ ~ ~ o ~' aci '~ ~ ~ ~ ~ E ~ ~ `~ ~ ~ + ~ ~ • ~ o 7 ~ v ~ ? ~ 0? dti ~ ~ ~ V ~ ~~` U ~ N ~ .O ~ L ti O (Q ~ ~+ C U1 p ~ ~ u1 w ~ :r L~ O ~ ~ ,~ ~ ~ ~ ~ ~ 4-- 0 R ~ ~ ~ ~ , ° ~ rn 1 a C ( p V ~ } rE it ~, ~+ stn ~ o ~ o ~ ~ ttf d ~ C°.7 ~ E .X ~ E C d ~ cv 7 d 0 N N G C 0. L v ~ ~ N _ ~ ~ (j} L_ ~ rt'r ~ i ~ ~ C Q C ~ [~ Z O p es ~ N ~ p O ~ ~ G> .~ ~ ,,, ca 'o ~ fl, ~ ~ N ~ ~ ~ ~ a.~ ~ ~ ~ ~ y ~ ~ ~ C ~ ~ ? C ~ ~ d N ~ ~ . C1 ~ ~ ,U ~ ~ ~ ~ 'N ~ C N ~ ~ ~ ~ L ~ ' ~ - ~ C ~ t - ~ S l~ a ~ ~ O ~ N Q ~1 a1 ~ c y ~ 1 +- N ~ ~' ~ ~ ,~ ~ ~ ~ m ~ ~ . ~ N ny y ~ ro .~ ~? ~ ~ ~ ~ ~ ~ ~ j ~ w C ~...~ ~ c~ ~ p oo U ~ d O ~ yp r ~ ~.~ o ~ ur O us c~ E p o U 3 c`n ~ c 0 a ~ c c ~' ~ ~ ' U i ~ ~ • -~ 7 ~~ 'a CY Cy 'o ~ o ~1 , , W ~ O O O O ~ Imo- j~ L ~ ~ c ~ ~' ~ ~ U O O N ^ ~ O C (G ~ ~ ~ W C' C ~ C; U ~ aL-+ C C O ~ O~ C_~ a ~ ~ C d ~ o 0 ~ m N ~~yy 7 }} Q 7 C C ~ - d C9 `~ ` N ~ ~ ,~ ~ r a o C7 ~f? ~ M l , ~ ~ C. Q ;~ u ~n ~ ~ -Q;i ~ s; C ~ ~ _~ ~ ,~ C? ~ ~. ~U cN~ G .~$ N ~ ~ ~ ~ y. Q ~~ :~- !- ~¢ u N on cn ~. ~: a ~ 4 ~_, o s~ ' c~(j ~ ' .~~ ~~ ~ C~ a~ o~~o ~~ Q' C N ' NC .,a 03 G L ~ ~~ Q C C1 ~ ~ J a ~ U .S F- (0 (7 C c: p '~ C c a ~; ~ ~ 1 C1 - ~ ~~ ~ o ~'• s~v ~? ~ m spa n ~r~ ~~ ~ q t.» t~~a ~ia~~ au,~ O O C W ~ ~ L i1Qy L Y LY O ~ ~. ~ ~ '- ~ N ~ ~ ~ to ,~ U7 O ~ ~, Q1 R ~ L ~~ e ~ H ~ N 'O to ~~ U N O O ~ 4 t~ V j ~ C C N r ly ~ ~ . J v N N O V~ ~ ~L ~ 1? f0 ~~ N d U 03 flY ~ US c7 d) ~ L Q} O. ~ ~ 01 J ~ ~ ~ N ~ ~ v C1 ~ h ~ ~ ~~ c6 ~ ~ ~ ~ ~ N ~ +r ~ C '' 4 ~ U C] C p d1 _ Cn ~ ,O c4 N N p C7 C c ~ 0 C uy ~ ~ <p ~ CY ~ ~ ~ "a .V } c ~ ~ O` s d .~ ~I1 N ~ N d ~~ G71 w a CITY CF NORTH RICHLAND HILL Department: City Secretary Council Meeting Date: 2-25-2~D8 Presented by: Agenda No. B.0 Subject: EXECUTIVE SESSICJN -The City Council may enter into closed Executive Session to discuss the following as authorized by Chapter 55~, Texas Government Code CITY ~F NORTH RICHLANQ HILLS Department: City Secretary Council Meeting Date: 2-25-2008 Presented by: Agenda No. B. ~ Subject: Executive Session: Deliberation Regarding Economic Development Negotiations as Autho rized by Section 55 ~ .087 -South Boulevard 25 clry of N~RT!-! RlCHL~4ND hllLLS Department: City Secretary Presented by: Council Meeting Date: 2-25-2008 Agenda No. C.o Subject: Adjournment City of North Richland Hills City Council Regular Meeting Agenda North Richland Hills City Hall Council Chambers 730 Northeast Loop 820 North Richland Hills, TX 7~~80 Monday, February 25, 208 7:D0 P.M. A.0 Call to order _ Ma or Trevino A.1 I avocation -~ Cour~cilmar~ Sa ;~ A.2 Pled, e _ Cour~cilr~nar~ Sa ;~ A.3 ecial Presentation ~s ar~d Reno r~ition s A.4 IR 2~~8-~;~~ ecial Preser~tatior~~ _ t~~ertificate of Acl~~iever~~ent for excellence ire Fir~ar~ciay+^^~.~1 R.e ;~ortin , for tl~~e Cor~~~ rel~~er~sive Fir~aacia.l Re ort er~dir~ Se teml;~er ~~ 2~~ ~w/ A.5 Citizens Presentation An opportunity for citizens to address the City Council on matters which are not scheduled for consideration by the City Council or another City Board or Commission at a later date. In order to address the Council, please complete a Public Meeting Appearance Card and present it to the City Secretary prior to the start of the Council meeting. The Texas open Meetings Act prohibits deliberation by the Council of any subject which is not on the posted agenda, therefore the Council will not be able to discuss or take action on items brought up during the citizens presentation. A.~ Rer~r~oval of Iter~~ s fror~n Consent A encJa B.~ CC~NSIG~(~R APPRC~~'AL F CCrI~JSF"rrlT ACFN~JC~A ITFMS All consent agenda items listed below are considered to be routine items deemed to require little or no deliberation by the City Council and will be voted on in one motion. There will be no separate discussion of these items unless a Council Member so requests, in which event the item will be removed from the Consent Agenda and considered. B. ~ A .~rc~vsl of Minutes of Febr~.tar .l ~ 2~~8 Cit Council Meetir~ B.2 Cf~J 2~~8_~ ~ 4 R esched~.tle tl~~e M a rcl~~ ~ ~ Council M eetinc, to March ~ a n~i the Ma 2 t~~or..~ncil Meetir~ to Ms. 2r C.o PUBLIC HC~.AR.INS C.~ CN 2CJ~~-~~ r tw;or'~dr..rct a. Fr..rblic Hearir'~ for tf'~e ~4t1'~ Fear t:on'~r~'~unit C~e~relo vent ~loc~: ~r"art Fro r~r~n C.2 ICJ 2~C~~-C~~ ~ ;~ ro~re 4th `y`ear" 2~~~1'2~~~=~~ tw~or~'~r~nur~it C~errelo .~r~'~e~r~t Elock. Cr"art Fro rar~n _ fesoiution No. 2~C~-C~~ TI'~is item is not s .public hesrir'~ br..rt related to Iter~n C. ~ Q.0 FL~f~Jf~JIN ~I~JC~ f~E~'ELC-F'1E1'~JT Items to follow do not require a public hearing. No items for this category. E.0 FUE~LIC wC~f~l E. ~ Fw 2~~~-~~~~ ~ :~r"ore No Far"I~ir~ ~n tir~~e pones alor~ E~ridc, e qtr"eet Ice Hc~~..rse I~rir~e ar'~d Hawl ,~ver'~ue - Crr"ciinsnce No. 2~~2 F.~ CEN~JEE~~L I""r"EI~I F. ~ N 2~~_~•I ~a :~ rove ~ reer~'~ent with f~Jor~l'~ Te~:~ss Tollwa author"it I~JTT~ to ~Ilow tl'~e Cit of f~Jortl'~ ~ichls.nd Hills to Issue Tollts. s _ fesolution Pilo. 2~C~~-(~~ `I F.2 N 2~~~'-`1E~:~ Frese~r'~tstior'~ of Fiscs.l Year" 2~~~ ~r..rdited Fir'~ar'~cisl fie orb F.3 F~ 2~~~~~~~ war"d IFF ~~'-~~~ to r Tec Roof Cons~.rltar'~ts in tl'~e ~r~nour'~t of a ~2 ~2~ for the F~oof c_~or'~sultNn~, ervaces G.~ E:E~w~~JTI~'E EIC-N`~J ITEM G. ~ fiction on ,~r'~ Iter~~ discussed in Eecr..rti~e essior'~ Listed or'~ worN~ ~essior~ Vic:, e r~da. H.~ II'~lFC~I~~TI+f~J ~f~l~ r~EF.T H.~ ~r~nour'~cer~'~ents _ Cour'~ciir~an earth H.2 ~d~ourr'~r~ner~t c1rY of N~RTN R1ChIL~4ND H1LLS Department: City Secretary Presented by: Council Meeting Date: 2-25-ZOD8 Agenda No. A.o Subject: Call to order -Mayor Trevino clrY of NORTH RlCHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 2-25-2~~8 Agenda No. A. ~ Subject: Invocation -Councilman Sapp CITY 4F lVC~R TH RICHLAND hI1LLS Department: City Secretary Presented by: Council Meeting Date: 2-25-2~a8 Agenda No. A.2 Subject: Pledge -Councilman Sapp ~s}uoi~iu~oaa~ pue ~s}uoi~~uasaad ~~iaad~ :~afgns 8~y ~oN ~epua~d 800Z-~Z-Z :a~~a ~ui~aa~ ~iauno~ :~(q pa~uasaa~ ~ ~aaaa~ ~i~ :~uau~~~daQ S771H ~Nb'?N~IbI hf.L~l~fV ~o.~lr~ Department: Finance Presented by: Larry Koonce Council Meeting Date: 2-25-208 Agenda No. A.4 Subject: IR 208-D30 Special Presentation -Certificate of Achievement for Excellence in Financial Reporting for the Comprehensive Financial Report ending September 3~, 2~~5 lfi~FORI~!lA. REPORT TO 1~1lA~'OR Al'~C~ CITE' COIJNGII. Flo. IR 208-030 ;f f1 ~.. r ;, ,f .. ~,' ,ts' af:..~.,... .,t t, ,o ;~ date: February 2~, 203 Subject: Special presentation ~- Certificate of Achievement fior Excellence in Financial Reporting for the Comprehensive Financial Report ending ~epternber 30, ~oo~ The Government Finance Officers Association ~GFOA} awarded a Certificate ofi Achievement fior Excellence in Financial Reporting to the City fior its Comprehensive Financial Report fior the fiiscal year ending September 30, 2og~. The Certifiicate ofi Achievement is a prestigious national award recagni~ing conformance with the highest standards for preparation ofi state and local government fiinancia! reports. The Certificate of Achievement is valid for a period ofi one year only. The City has been warded a Gsrtlficate c-f ~chle~rement far the last ~~ cansecutlve dears. The GFOA ~oo~ report ofi results ofi the program indicates that ~f the ne~rl~ 9,~~~ rnunlcipalltles In the Mate t~f Texas ~~~ ~r ~~°1~ recel~red the ward. Cif the nearly ~~, ~a~ c lue s l n th a ll r~ lied Mates, 1, 7~~ ~r ~°,~~ received the ward. The Certificate ofi Achievement for Excellence in Financial Reporting program was established by the Government Finance Officers Association ~GFOA} in 1g~~. The GFOA instituted the program to encourage all government units to prepare and publish an easily readable and understandable comprehensive annual financial report ~GAFR} covering all funds and financial transactions ofi the government during the fiscal year. The GFOA believes that governments have a special responsibility to provide the public with a fair presentation of their financial affairs. CAFR's go beyond the requirements of generally accepted accounting principles ~GAAP} to provide the many users of government financial statements with a wide variety of information useful in evaluating the financial condition of a government. The Certificate Program provides participants with extensive technical reference materials to improve their financial reporting techniques. Suggestions and comments from reviewers also help staff to improve the document. Another great benefit of the Certificate of Achievement program is that it provides a detailed vehicle by which bond rating analysts, market analysts, investors, potential investors and others may assess the relative attractiveness of our City's bonds compared to alternative investment opportunities. Users of the City financial statements look for this award and regard it as the "Good Housekeeping Seal of Approval" for governmental financial reporting. Council will notice a facsimile of the 2000 certificate on page 9 of the 2007 GAFR in your packet. ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS Fred Werner, Director of Finance with the City of Grapevine and past President of the Government Finance ~fFicers Association of Texas, will be at the Council meeting to present the Certificate of Achievement award to the City. Although no action is needed by Council, we do commend the Accounting staff for their professional efforts that have made it possible for the City to again receive this prestigious award. This is truly a team effort by City Council, Management, and staff and meets Council Goal 4: Financially Responsible City Government. Respectfully submitted, Larry Koonce Director of Finance ciry of IV4RTH RlCHLAND H1LLS Department: City Secretary Council Meeting Date: 2-~5-208 Presented by: Agenda No. A.5 Subject: Citizens Presentation An opportunity for citizens to address the City Council on matters which are not scheduled for consideration by the City Council or another City Board or Commission at a later date. I n order to address the Council, please complete a Public Meeting Appearance Card and present it to the City Secretary prior to the start of the Council meeting. The Texas open Meetings Act prohibits deliberation by the Council of any subject which is not on the posted agenda, therefore the Council will not be able to discuss or take action on items brought up during the citizens presentation. clry o1= N~RThI RICHLAND H1LLS Department: City Secretary Presented by: Council Meeting Date: 2-25-2~~8 Agenda No. A.6 Subject: Removal of Items} from Consent Agenda c/ry aF NORTH J41CHL.4ND HILLS Department: City Secretary Council Meeting Date: 2-25-208 Presented by: Agenda No. B.0 Subject: CONSIDER APPROVAL CAF CONSENT AGENDA ITEMS All consent agenda items listed below are considered to be routine items deemed to require little or no deliberation by the City Council and will be voted on in one motion. There will be no separate discussion of these items unless a Council Member so requests, in which event the item will be removed from the Consent Agenda and considered. ~lry o1= N~RTN R1ChIL,4ND H1LLS Department: City Secretary Council Meeting Date: 2-25-2~~8 Presented by: Agenda No. B.~ Subject: Approval of M inutes of February ~ ~ , 2~~8 City Council Meeting Recommendation: To approve the minutes of the February ~ ~, 208 City Council Meeting. MINUTES GF THE WGRK SESSIGN AND REGULAR MEETING GF THE CITY CGUNCIL 4F THE CITY aF NORTH RICHLAND HILLS, TEXAS, HELD IN THE CITY HALL, 730'1 NGRTHEAST LGGP 820 - FEBRURARY 1'I, 2008 WGRK SESSIGN The City Council of the City of North Richland Hills, Texas met in Work session on the ~ stn day of February, 2008 at 5:45 p. m. in the Council Work Room prior to the 7:00 p.m. regular Council meeting. Present: Oscar Trevino Mayor Suzy Compton Mayor Pro Tem, Council Place 3 John Lewis Council, Place ~ Ken Sapp Council, Place 2 Tim Barth Council, Place 4 David Whitson Council, Place 5 Scott Turnage Council, Place ~ Staff Members: Larry J. Cunningham City Manager Ogden Bo Bass Assistant City Manager Jared Miller Assistant City Manager Karen Bostic Managing Director Patricia Hutson City Secretary Monica Solko Assistant City Secretary George Staples City Attorney Mary Peters Public Information Officer Elizabeth Reining Assistant to City Manager John Pitstick Director of Planning & Development Larry Koonce Finance Director Mike Curtis Public Works Director Thad Chambers Economic Development Director Patrick Hillis Human Resources Director Jimmy Perdue Police Chief Kirk Marcum Assistant Chief Fire Marshal Eric Wilhite Chief Planner Jamie Brockway Purchasing Manager Sean Hughes Emergency Management Coordinator Absent: Tim Welch Council, Place 7 Call to C)rcier Mayor Trevino called the work session to order at 5:45 p.m. A. ~ Discuss Items from Regular City Council Meeting There were no items discussed. A.2 I R 2008-0~ 3 Discuss 2008 Federal Legislative Positions Ms. Bostic presented a PowerPoint presentation highlighting the City's 2008 Federal Legislative Positions. As in previous years, four guiding principles were used to determine positions on city-related issues expected to come forward during the next legislative session. Ms. Bostic explained the four guiding principles -local control; predictable and sufficient level of revenue to provide for NRH citizen; opposition to unfundated mandates; quality of life. Ms. Bostic briefly discussed each of the highest priorities and the City's position: • Internet Sales Tax - City supports preserving point-of-origin sourcing for intrastate sales and point of-destination sourcing for interstate sales; opposes any changes to sales tax sourcing laws; supports the application of sales taxes on applicable products and services purchased over the internet. • Transportation Funding -City supports federal legislation that provides full funding for federal transportation programs; supports collaboration with local elected officials on the reauthorization of the surface transportation infrastructure program. • Telecommunications & Information Technology -City urges Congress to exempt Texas from any cablelvideo franchise legislation or FCC order; supports any Congressional proposal or FCC order that recognized Texas has adopted a uniform statewide franchising system and does not preempt the Texas law; opposes any legislation that will restrict the ability to manage our rights-of-way or that allows rights-of--way users access without appropriate compensation to the city; opposes any legislation that would allow the position of PEG channels at the same quality broadcast as other channels and would not require the service to be offered to all residents. • Community Development Block Grant -supports the continuation of the CDBG program at current andlor increased levels, as this program has been and will continue to be important in funding revitalization efforts within the community; opposes any budget proposals that seek to combine, eliminate or reduce community development programs that have continually proven to be effective in redeveloping deteriorating areas of cities across the country. • Homeland Security -City urges Congress and the Federal Government to provide more guidance as to specific rotes and responsibilities between levels of government when responding to natural disasters and threats; supports an increase in direct federal funding to local governments for preparedness and response training, threat assessment, communication systems, public health systems and critical infrastructure protection. • Public Safety & Collective Bargaining -opposes federal legislation which singles out a class of municipal employees to be provided special bargaining rights, and pre-empty investigative and disciplinary procedures that are already in place under civil service systems and the "Meet and Confer" laws of Texas. • Immigration Reform -supports comprehensive immigration reform legislation that addresses border security and interior enforcement at the federal level of government; opposes any proposal that would mandate municipal enforcement of federal immigration laws. Ms. Bostic advised of suggested revised wording to Immigration Reform. Council was provided with a copy of the suggested revision. Council was also provided with a second revision to the wording, which was basically the same as the suggested revision, but simplified one of the statements. After the Council briefly discussed their preferences to the wording, the consensus of the Council was to go with the second revision. The second revision deleted the following language in the third paragraph - "The City of North Richland Hills strongly concurs and also supports, along with the NLC, streamlined and acceptable guest worker programs that enable businesses to hire foreign workers in order to meet economic demands. In recent years municipalities have become the main service providers to immigrant families. The federal government should assist local governments to provide healthcare, education and social services to these new workers." The deleted language was replaced with the following language `The City of North Richland Hills strongly concurs and supports comprehensive immigration reform to allow companies to meet labor shortages with legal access to foreign workers through an acceptable guest worker program. In addition, since control of immigration practices is the responsibility of the Federal government, local governments should not have to bear the cost of enforcing federal immigration laws." A.3 IR 2008-020 Red Light Camera Program Update Chief Perdue updated the Council on the Automated Traffic Signal Enforcement Program approved by Council in November 200G. All of the seven intersections with nine approaches approved for the program are operational with the exception of the westbound Access Road of 820 at Rufe Snow. Chief Perdue reviewed with Council the number of violations and crash data for the intersections through December 2007. The first intersection was installed in May 2007 and first violations were issued in June 2007 after a 30-day warning period. Council was advised of calibration issues at some of the intersections and that no violations were issued during that time. of the violations issued, there have been 23 hearings before the hearing officer with all 23 found liable; one violation has been appealed to the City Court and is waiting a trial date. Chief Perdue reviewed the revenues and expenses through December 2007. Chief Perdue advised that the City continues to receive questions that the yellow lights have been adjusted at the intersections. Chief Perdue advised that the City has not changed any of the lights and continues to follow the rules set aside by the Texas Manual of Uniform Traffic Control Devices. There were no questions from the Council. A.4 IR 2008-02~ Emer ency Management-- Weather Update Sean Hughes, Emergency Management Coordinator, presented a PowerPoint presentation providing an update on the City's emergency management preparedness, prevention and response effort`s. The 2007 disaster season was recapped and Council was advised that all eligible disaster recovery projects have been submitted to FEMA and are awaiting approval and funding. The projects will be initiated after funding has been completed and received. Some of the projects include replacement of many of the sand bunkers on the golf course, replacement of a section of sanitary sewer, replacement of a maintenance vehicle on the golf course and reimbursement for debris removal on the golf course. Council was advised that Code RED refresher training was held on January ~5 with ~4 Staff members participating from the Police, Fire and City Manager's office. A Severe Weather Training Class held at Richland High School on January 22 was attended by over 75 citizen volunteers of Community Emergency Response Team (CERT}, Radio Amateur Civil Emergency Service (RACES), Citizens Fire Academy CFA} and Citizens Police Academy CPA}. The City's Emergency operations Plan was revised and updated. The plan was submitted to the State of Texas and on January 25, 2008 was approved at the advanced level. The City is continuing to train and meet the National Incident Management System ~NIMS} requirements. The Emergency operations Center Command and General Staff are currently completing the ICS 300 and 400 segments of the NIMS requirements. The seventh CERT class with 2~ members recently completed training, bringing the number of North Richland Hills CERT members trained to over X70. The City is involved regionally as a member of the Regional Emergency Planning Advisory Council ~REPAC}, Tarrant County ~TCEM} and Regional REM} involvement. The Emergency Management I Homeland Security Division participated in regional development of shelters in North Richland Hills. The City has two standing self-sustaining shelters with one shelter designated with ability to shelter pets. The City continues to maintain the readiness of ten outdoor emergency warning sirens. ~ Additionally, one new siren, located at Tarrant County College NE, was added to the system and is tied to the Hurst and North Richland Hills system. There were no questions from the Council. A.5 I R 2008-022 Standard of Care for Treatment of a Heart Attack Fire Lieutenant Kyle McAfee, EMS officer, and Dr. Roy Yamada, Emergency Medical Doctor for the Fire Department presented the item to Council. Council was advised that the national standard of care for treatment of a heart attack is for the patient to receive treatment within 90 minutes of the time the patient enters the hospital door. Several years ago, Dr. Yamada identified the need to decrease the 90-minute time. Dr. Yamada believed that the paramedics in the field were positioned to make a sizeable contribution in the treatment of patients suffering heart attacks. In May 2007, North Hills Hospital acknowledged the paramedics ability to correctly diagnose a heart attack and made the assumption that treatment time could be decreased considerably if the paramedics in the field were able to bypass the emergency room physicians and activate the Cath lab prior to the patient arriving at the hospital. This early diagnosis and phone call has reduced the door to treatment time for the patient to 48 minutes. The attainment of the 48 minute treatment time exceeds the national standard for 78% of patients to receive catherization within 90 minutes. There were no questions from the Council. A.5 IR 2008-024 2007 Economic Development Review Thad Chambers, Economic Development Director, presented a PowerPoint presentation, updating the Council on economic development activities. New home starts and residential permits are down from previous years, while new businesses exceeded the previous three years with commercial permit values down. The City has seen an increase in taxable sales. Mr. Chambers advised of retail development activities, North Hills Hospital expansion, office development and new business activities. The City continues to work with and support the Chamber, Quad Cities and Corridor 28 Association. Qver 200 guests attended the 2007 Business Appreciation Luncheon. Eighty-eight businesses that had been in the City for over 20 years were honored at the luncheon. B.0 EXECUTIVE SESSIQN -The City Council may enter into closed Executive Session to discuss the following as authorized by Chapter 55~, Texas Government Code Mayor Trevino announced at 5:34 p.m. that the Council would adjourn to Executive Session pursuant to the provisions of Section 55~.07~, Texas Government Code the City Council will meet in closed session to seek the advice of its attorney about pending or threatened litigation: Robert Coffman. C.0 Ad,~ournment Mayor Trevino announced at 5:37 p. m. that the Council would adjourn to the regular Council meeting. REGULAR CGUNCIL MEETING A.0 CALL TG ORDER Mayor Trevino called the meeting to order February 1 ~, 2008 at 7:00 p.m. RG LL CALL Present: Oscar Trevino Suzy Compton John Lewis Ken Sapp Tim Barth David Whitson Scott Turnage Staff: Larry J. Cunningham Ogden Bo Bass Patricia Hutson Monica Solko George Staples Absent: Tim Welch Mayor Mayor Pro Tem, Council Place 3 Council, Place ~ Council, Place 2 Council, Place 4 Council, Place 5 Council, Place ~ City Manager Assistant City Manager City Secretary Assistant City Secretary Attorney Council, Place 7 A.'I I NVC~~;ATIC~N Councilman Turnage gave the invocation. A.2 PLEDGE taF ALLEGIANCE Councilman Turnage led the pledge of allegiance. A.3 SPECIAL PRESENTATIaN~S~ AND RECGGNITIGN~S~ ANNUAL BUNNY & BEAR DRIVE PRESENTED BY HALEY VVHATLEY Ms. Haley Whatley presented the Council with a memento from her 8th Annual Bunny & Bear Drive benefiting Cook Children's Medical Center in Fort Worth. Ms. Whatley will also be recognized in Washington DC as one of the Texas Top Two Youth Volunteers selected in the ~ 3th Annual National Awards Program. A.4 CITIZENS PRESENTATIGN None. A.5 REMOVAL OF ITEM{S} FROM THE CONSENT AGENDA None. B.4 APPROVAL GF CONSENT AGENDA ITEMS APPROVED B.1 APPRGVAL OF MINUTES OF JANUARY 28, 2448 CITY CGUNCIL MEETING B.2 RP 2447-13 CONSIDERATION CF A REQUEST FROM MARCUS BLAGG AND T.J. STANKIEWICZ T4 APPROVE A REPEAT GF LCT 1, BLOCK 1, INTO LOT 1 R-1 & 1 R-2, BLOCK 1, CULP ADDITION LOCATED AT 6744A DAVIS BLVD - 4.548 ACRES}. Cvu'NGIi~ItiN~N Tu'RNAGE IVEQ TQ ARPRQ~IE THE: CtJNSENT AGENQA. CQUN'CLLMAN WH'ITS~!N ~ECC~N'QEQ THE MC?Tl'QN.. MQTLt~N TQ APPRQVE CARRIED ~-4. PUBLIC HEARINGS C.1 ZC 2447-13 CASE HAS BEEN WITHDRAWN BY APPLICANT: REQUEST FROM KEITH HAMILTON TO WITHDRAW ZONING CHANGE REQUEST FROM "RI-PD" RESIDENTIAL INFILL PLANNED DEVELOPMENT AND "NS" NEIGHBORHOOD SERVICES TO "NR-PD" NON RESIDENTIAL PLANNED DEVELOPMENT LOCATED IN THE 8944 BLOCK OF MID CITIES BLVD - 5.855 ACRES} - ORDINANCE NO. 2973 . WITHDRAWN Mayor Trevino advised that the public hearing was continued from the January 14, 2448 City Council Meeting and that the applicants had withdrawn the request. Mayor Trevino closed the public hearing and advised that no action was required. C.2 ZC 2447-14 CASE HAS BEEN WITHDRAWN BY APPLICANT. REQUEST FROM KEITH HAMILTON TO WITHDRAW ZONING CHANGE REQUEST FROM "RI-PD" RESIDENTIAL INFILL PLANNED DEVELOPMENT TO "R-2" SINGLE FAMILY RESIDENTIAL LOCATED ON THE 8744 BLOCK OF MARTIN DRIVE - 4.148 ACRES}. -ORDINANCE NO. 2974 WITHDRAWN Mayor Trevino advised that the public hearing was continued from the January 14, 2008 City Council Meeting and that the applicants had withdrawn the request. Mayor Trevino closed the public hearing and advised that no action was required. PLANNING & DEVELOPMENT D.1 No items for this category. PUBLIC VII~RKS E.1 PW 2008-004 APPRGVE TEXAS DEPARTMENT CF TRANSPGRTATIGN ~TXDCT~ UPDATED AGREEMENT FGR THE MAINTENANCE aF TRAFFIC SIGNAL LIGHTS CN STATE HIGHWAY RIGHT-CF-WAYS - RESC?LUTIGN NG. 2008-009 APPROVED Mike Curtis, Public Works Director presented the item. The Texas Department of Transportation tTxD~T} is notifying cities that an "updated" maintenance agreement for traffic signal lights on state controlled roadways must be executed. The updated agreement includes the same responsibilities for the City and the State, but now identifies new locations where traffic signal lights have been installed since the previous agreement. All cities in the State, with a population of 50,000 or more, are required to execute the same agreement for maintaining traffic signal lights on State controlled roadways. Traffic signal lights on controlled access freeways (Loop 820 Frontage Road} within the City will continue to be maintained by the State. Gv~uNGILMAIN SAPP Mt~1fEQ Tt) APPROVE RESC~LtJTIQN N'o, 2:008'-009, MAYOR PRQ TEM GC~IUPTC?N SECG~NQE13 TH'E I~llt~!TiQMN'.. M~!TIC~N TGl APPROVE CARRIED 8-(~'.. E.2 PW 2008-005 APPRGVE SUBGRDINATICN AGREEMENT FGR THE 1998 GITYIDEVELC~PER AGREEMENT WITH BILLY AND ERNESTINE GRAHAM - RESCLUTION NC. 2008-010 APPROVED Mike Curtis, Public Works Director presented the item. The City of North Richland Hills executed a CitylDeveloper Agreement with Billy J. Graham and Ernestine Graham in 1998 pertaining to Hightower Drive street improvements and Calloway Branch channel improvements. The channel improvements were constructed several years ago and Mr. Graham paid the city as outlined in the agreement. The street improvements were also completed several years ago; however, the agreement did not require payment to the City of North Richland Hills until the property was sold. In 2008, approximately 55 acres were sold and the City received $G5,520.28 and approved a partial release of the lien held against the property for the street improvements. A portion of the property still remains unsold and the city still maintains a lien against this portion of the property. Since the execution of the 1998 City/Developer Agreement mineral rights have been leased from the Grahams. The 1998 agreement did not specifically address how mineral rights would be considered if such a lease occurred. The Subordination Agreement would spell out the rights of the City and the property owner as they pertain to mineral rights. The agreement would clearly indicate that the property owner has all rights to minerals as it pertains to their Lease Agreement. The City would not have any rights to the minerals under the property which it currently has a lien against. City staff is recommending that the Subordination Agreement be executed. CC~u'N~ILMAN LEUUI~ MQVED TQ! APPROVE RESC~LUTI~N' NQ, 2008-O'10, CQIJNCILl1'IAIN BARTH'. SECO`N:DED THE. M~')11'QN, M~?TIC7~N TQ APPROVE CARRIED ~-0'.. GENERAL ITEMS F.1 GN 2008-0'I'I CALLING MAY '10, 2008 CITY COUNCIL ELECTION AND AUTHORIZING A JOINT ELECTION AGREEMENT WITH OTHER TARRANT COUNTY POLITICAL SUBDIVISIONS AND CONTRACT FOR ELECTION SERVICES WITH TARRANT COUNTY -RESOLUTION NO. 2008-088 APPROVED Ms. Patricia Hutson, City Secretary, presented the item. The Resolution orders the City's General Election for May 1D, 2008 for a Mayor and Council Places 2, 4, and 6 for finro-year terms of office, establishes voting locations, provides for the appointment of election officials, provides for early voting and election day procedures and authorizes the City Secretary to execute a contract with Tarrant County for election services. Tarrant County has requested those governing bodies holding a May election to enter into a joint election agreement and contract with the County for election services. The election will be held jointly with other Tarrant County cities and schools with Tarrant County administering the election. CC~!UNCILMAN' WHIT~~!N MQVED TO! APPROVE' GN 2:00$-Q"1'I'; RES~LUT1CiN htt~, 2:00-088, CC~UNICILMAN TURNAGE SECC~NDEa TH'E NK~T1'C!N, Mo~noM TQ APPROVE CARRIED 6-0,. F. 2 PU 2008-006 AUTHORIZE THE PURCHASE AND INSTALLATION OF REPLACEMENT MOBILE DATA COMPUTERS FOR FIRE APPARATUS FROM PORTABLE COMPUTER SYSTEMS, INC. IN THE AMOUNT OF $142,608 APPROVED Larry Koonce, Finance Director presented the item. In the 2007120D8 capital budget, Council approved $54,859 for the purchase and installation of 2~ Mobile Data Computers ~MDC} for the Fire Department in their apparatus to communicate with the Tiburon computer aided dispatch and records management system. MDCs also allow dispatch to communicate with public safety units, relaying incident and other relevant information. They are the primary communication link for the fire unit. The MDCs integrate with our communication system to record departure and arrival times, unit status and location information. The purchase of this equipment will fulfill the City's plan to replace all public safety MDCs in the Police and Fire Departments. Currently, the Fire Department apparatuses utilize ~ 2 year old equipment. The units have become increasingly unreliable and not repairable. The City solicited and received bids from 3 vendors that participate in and are approved by the State of Texas Department of Information Resource ~DIR} cooperative purchasing program. The bids are as follows: MDC Units Portable Computer Systems $~ ~ 3,257.09 C DW G $ ~ 22, ~ 23.00 System 3x/4xx $ ~ ~ 9, 591.85 Installation Total Cast 29,35 .90 ~ 42,G08.00 23,805.09 ~ 45,929.Q0 Unavailable Recommendation is to award the bid for the Purchase and Installation of Replacement Mobile Data Computers for Fire Apparatus to Portable Computer Systems, Inc. in the Amount of $142,~D8. Ci?UNCI~MA~I EARTH Mt~VEa Ta APPRaVE PU 2008-C~0~. C~I~NCILMAIV! H~TSaN SECC?N'DED THE 1~11o'llohl. MoT~o~ TQ APPROVE CARRIED 6-0'. F. 3 GN 2008-012 APPROVE 2008 FEDERAL LEGISLATIVE POSITIONS APPROVED Karen Bostic, Managing Director presented the item. As in previous years, four guiding principles were used to determine positions on city-related issues: The four auidina princiales used to develoathe proaram are: • Support for local control; • I nsuring a predictable and sufficient level of revenue to manage local affairs; • apposition of unfunded mandates; • Support of legislation that increases the quality of life for citizens of North Richland Hills. The City's positions on various issues fall into the following categories: Protecting Local Programs, Powers and Revenues • Internet Sales Tax • Telecommunications & Information Technology • Community Development Block Grant Protecting the Homeland • Homeland Security • Public Safety & Collective Bargaining Unfunded Mandates • Transportation • Immigration Reform IWtI~IYC~R PRQ TEM' ~C?IVP'TDN !D TC~ APPRQV"E GN 2~~8-Q!''I ~' THE 2001$ FEDERAL LEGISLATIVE Pt~S1T1QNa. ~DUNGLLIVI~N WHITSC~N ~E'CD!NDED THE ItiEla'11D1'~L. MOT1'DN TD APPROVE CARRIED ~-0'. F.4 GN 2008-0'I 3 APPRGVE ATMGS ENERGY, CGRP., MID-TEX DIVISIGN SETTLEMENT AGREEMENT AND NEW TARIFFS - GRDINANCE NG. 2980 ^~pRnr~n ~n September 20, 2~~7, Atmos Energy Mid-Tex Division filed a Statement of Intent to Increase Rates within the City of North Richland Hills. The Statement of Intent indicated that the company was seeking a $52 million rate increase. Suspension of the effective date gave the City, along with other members of the Atmos Cities Steering Committee, time to analyze the schedules and evidence offered by Atmos to support its request to increase rates. The suspension was approved by Council at the October 8, 2007 City Council meeting. A contested case proceeding before the Railroad Commission on Atmos' current application will take several months and cost ratepayers millions of dollars in rate case expenses and would not likely produce a request more favorable than that to be produced by the settlement. The ACSC Executive Committee recommends that ACSC members take action to approve the Settlement Agreement. This Settlement Agreement achieves several desirable outcomes, including: • Reverses rate design decisions that unfairly impact residential ratepayers. • Does away with piecemeal ratemaking problems inherent to the GRIP surcharge process. • Eliminates exposure to potential court reversal of the multi-million dollar Poly-~ Pipe disallowance ~Atmos' issue on appeal in Docket No. 9400}. • Avoids uncertainty and potential negative consequences of Railroad Commission rate review din the two most recent rate cases affecting Atmos Mid-Tex customers, the Commission has reversed rate reductions recommended by its own hearings examiners in favor of rate increases}. • Implements an expedited rate review process that includes the cities and allows review of all aspects of Atmos' cost of service. • Requires Atmos to reimburse ACSC for mare than $500,000 paid to litigate GRIP surcharge cases. • Protects ACSC members and their citizens from the remote possibility that a litigated outcome or settlement with other parties produces a result more favorable than the ordinance passed by ACSC members by including a Most Favored Nations provision in the Settlement Agreement. The approval of the Settlement Agreement and Tariffs with ordinance No. 2980 will increase the average residential customer by .37%, or 20¢ per month, the average commercial customer by ~ . ~ 8°/° or $3.48 per month, and the average industrial customer by .12% or $3.58 per month. COUNCILMAN TuRNAGE MQ1rEt3 TC~ APPROVE GN 20Q~-I~''13; Q'RDI~IANCE hLC~. 2'x&''0.. COU'NCiLMAN! B~ARTH SECONDED THE MOTION',. MOTLON TO APPROVE CARRIEQ ~'-4.. F. 5 ACTION GN ANY ITEM DISCUSSED IN EXECUTIVE SESSIGN LISTED GN ~IIIGRK SESSIGN AGENDA No action needed. G. "I I N FG R MATT C N AND R E PG RTS Mayor Pro Tem Compton made the following announcements. The North Richland Hills Fire Department is offering classes each month in CPR and the use of Automated External Defibrillators. Upcoming classes are scheduled from ~ to 5 p.m. on February 5th and 0 to ~0 p. m. on March 4th. The cost is $25 per person. For more information, please call 8 ~ 7-427-8900. The City of North Richland Hills invites local businesses to compete and have fun in the Companies in Action program presented by HealthMarkets. Activities begin with a dodgeball tournament on February 1~th. For registration information, please contact the Parks & Recreation Department at 817-427-8G~~. Early voting for the March 4th Republican and Democratic Primary Elections will be held February 19th through 29th. In North Richland Hills early voting will take place at the NRH Recreation Center, G720 NE Loop 820. Early voting will also take place at several other locations in Tarrant County. For voting times, locations and more information, visit www.tarrantcounty.comlevote or call 817-831-VOTE. Kudos Korner - officer Rick Dena, Police Department. A call was received from a long- time resident expressing gratitude for the caring, resourceful and compassionate way officer Dena responded to a 911 call from a neighbor. As a resident since 1979, the caller said he has always had the utmost respect, regard and admiration for the NRHPD and officer Dena is a fine example of an outstanding organization. G.2 ADJOURNMENT Mayor Trevino adjourned the meeting at 7:31 p.m. ascar Trevino -Mayor ATTEST: Patricia Hutson, City Secretary clry of NORTH RlCHLAND H1LLS Department: City Secretary Presented by: Patricia H utso n Council Meeting Date: 2-25-2008 Agenda No. B.2 Subject: GN 2008-0~ 4 Reschedule the March ~ 0 Council Meeting to March ~ 7 and the May 20 Council Meeting to May 27 There Will not be a quorum of City Council members in the City for the March ~0, 2008 City Council meeting. The consensus of the City Council at the January 28 Council Work Session was to reschedule the meeting to March ~ 7, 2008. Additionally, the May 2G City Council meeting falls on the Memorial Day Holiday. The consensus of the City Council at the January 28 Council Work Session was to reschedule the meeting to May 27. Recommendation: Approve GN 2008-0~4 to reschedule the March ~0, 2008 City Council meeting to March ~7, 2008 and the May 28 City Council meeting to May 27, 2008. clry of NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 2-25-2~D8 Agenda No. C.~ Subject: PUBLIC HEARINGS clry of NORTH R1ChILAND hllLLS Department: City Manager's office Presented by: Elizabeth Reining Council Meeting Date: 2-25-2008 Agenda No. C. ~ Subject: GN 2008-0~7 Conduct a Public Hearing for the 34th Year Community Development Block Grant Program In X996 the United States Department of Housing and Urban Development THUD} designated the City as a metropolitan city to receive direct entitlement of Community Development Block Grant CDBG} funds. Gn June 24, 199G the City Council accepted the direct entitlement designation and entered into an agreement with Tarrant County for the administration of the City's CDBG program. As a result of this designation, the City is awarded an annual grant on a formula basis to help provide a wide range of community development activities. CDBG funds are used in the revitalization of neighborhoods, economic development, and to provide public facilities and services for low to moderate income persons. Eligible CDBG projects include construction or rehabilitation of homes, basic infrastructure development such as waterlsewer facilities, streets, and other programs that target designated areas or persons. The programs/projects selected by the City must fall in the geographic target area identified by the most recent census as being an area with low to moderate income persons. Each program year, the City must prepare and submit a CDBG program outlining the use of these funds in accordance with HUD guidelines. Staff has prepared a program for the 34th CDBG program year that proposes to use the 34th Year CDBG funds as fo I I ows: • $88,556.08 for the design and reconstruction of a portion of the 3700 block of Charles Street approximately 475 feet from midblock of Marie and Jannie Streets to C~nxy Drive North}. This portion of street is being proposed as the City's 34th Year CDBG Project because the street is one of the lowest rated streets in the CDBG target area. This is the second year the City is applying for funds for the 3700 block of Charles Street. The City applied for funds in the 33rd Year CDBG for approximately 320 feet of Charles Street from Derrell Street to Marie Street. The City is still awaiting the County to begin that project. • $45,000 to be allocated and used for the rehabilitation of residential homes located within the target area identified by the most recent census as being of low to moderate income. As Tarrant County CDBG staff is completely responsible for administering this home rehabilitation effort, the location and number of the housing rehabilitation projects will be determined by Tarrant County at a later time. It is anticipated that roughly two to five homes will be affected depending on the scope and scale of needed improvements. These projects assume the City will receive the same funding amount as it did in the 33~d CDBG year. HUD requires that a public hearing be held so that the City can receive comments and input from citizens regarding the proposed 34th year (2~o8/2Da9} CDBG program project. NETS funding was included in the notice for the public hearing but will not be discussed because the project application is being reconsidered. Recommendation: To conduct the public hearing and receive public comments regarding the 34th Year CDBG program. Location Map for 3th CDBG Project clr~ aF NORTH RICHLAND HILLS Department: City Manager's office Presented by: Elizabeth Reining Council Meeting Date: 2-25-2008 Agenda No. C.2 Subject: GN 2008-018 Approve 34th Year (200812009) Community Development Block Grant Program -Resolution No. 2008-012 (This item is not a public hearing but related to Item C.1} Following the public hearing it is necessary for the Council to take action regarding the projects} to include in the 34th Year Community Development Block Grant (CDBG} program. Tarrant County and the City of North Richland Hills have entered into a joint administrative agreement whereby Tarrant County is given the authority to administer the program. As such, a 20% administration fee will be paid to Tarrant County for this purpose (approximately $46,711.22}. The proposed projects are as follows: • $188,556.08 for the design and reconstruction of a portion of the 3700 block of Charles Street (approximately 475 feet of an existing 31 feet wide back to back residential street}. • $45,000 for the rehabilitation of residential homes located within the target area designated by the latest census as being of low to moderate income. This amount of funding will aid in the rehabilitation of roughly two to five homes depending on the scope and scale of needed improvements. This rehabilitation effort is completely administered by Tarrant County CDBG staff. A description of the project has been provided for the Council's information. Additionally, the following resolution transmits the City's proposed 34th Year CDBG program. Recommendation: Approve Resolution No. 2008-012 NF~H RES~LUT~aN N~. ~aa~~-~~ ~"U"`HEREA~, the City of North Richland Hills mill receive direct entitlement of Community Development Block Grant ~CDBG~ funds for the ~~ ~~~~~I~oo~} CDBG program year; and '`HEREAS~, the schedule belo~r represents the City's requested program for the ~4~" (~~~8I20~~~} CDBG program year; and Prc~ ect E~timate~ Co-et Reconstruction of Charles Street ~1~~,a~~.0~3 From Marie St. to onyx Dr. N. Housing Rehabilitation projects ~ 4~,~~~.~o h1Q111t, THEREFC~-RE, ESE IT RES~L'~'EG- BY THE CITY Ct~Uh1CIL ~F THE CITY ~3F NORTH RICHLANC~ HILLS, TEAS; SECTION 9. THAT the schedule above represents the Ci~'s CDBG program for the 3A~~~' funding year, ~~~~~~~~~, PASSED AND APPI~~VED this the ~~th day of February, ~~~~. By: ATTEST: Patricia Hutson, City Secretary CITY CAF NGRTH RICHLAND HILLS Oscar Trevino, Mayor APPRGVED AS TO FGRM AND LEGALITY: George A. Staples, City Attorney Location Map for 34th Year CDBG Project CITY ~F NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 2-25-2~~8 Agenda No. D.o Subject: PLANNING AND DEVELOPMENT Items to follow do not require a public hearing. No items for this category. CITY ~F IVC)RTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 2-25-2008 Agenda No. E.0 Subject: PUBLIC WORKS clrY of NORTH RlCHLAND HILLS Department: Budget Council Meeting Date: 2-25-2098 Presented by: Mike Curtis Agenda No. E. ~ Subject: PW 2008-008 Approve No Parking Anytime Zones along Bridge Street, Ice House Drive, and Hawk Avenue - ordinance No. 2982 The Public Works and Police Departments have received several complaints from motorists and residents concerning parking problems on Bridge Street, Ice House Drive, and Hawk Avenue. Visitors to the NYTEX Complex located at 885 Ice House Drive are parking and leaving their vehicles unattended on Bridge Street, Ice House Drive, and Hawk Avenue. This parking creates potential traffic hazards, traffic congestion, and limits the sight visibility of motorists at various intersections. Staff has also received complaints about people who park and leave their vehicles unattended near Walker Elementary School. Parking around the school site during arrival and dismissal times can create one lane of through traffic. This causes congestion and creates potential problems for emergency response vehicles. In order to keep designated traffic lanes open, reduce congestion, and keep sight visibility open at intersections, staff is recommending that "No Parking Anytime" zones be installed as follows: ^ Both sides of Bridge Street from Ice House Drive to Lake Way. This will not include the head-in parking adjacent to the frontage of Walker Creek Elementary sparking will still be allowed in the marked parking stalls at the school). ^ Ice House Drive and Bridge Street intersection. No Parking Anytime on the south side of Ice House Drive, 50 feet east and west of Bridge Street intersection. ^ Ice House Drive and Hawk Avenue intersection. No Parking Anytime on the south side of Ice House Drive, 50 feet west of Hawk Avenue intersection. ^ Hawk Avenue and Cardinal Lane intersection. No Parking Anytime on the west side of Hawk Avenue, 50 feet north and south of Cardinal Lane intersection. ^ Hawk Avenue and Ice House Drive Intersection. No Parking Anytime on the west side of Hawk Avenue, 50 feet north and south of Ice House Drive intersection. ^ Hawk Avenue and the private driveway for BISD. No Parking Anytime on the east side of Hawk Avenue, 50 feet north and south of the BISD driveway intersection. These "No Parking Anytime" zones will keep two through traffic lanes moving and provide adequate sight visibility for motorists traveling these routes. Recommendation: To approve ordinance No. 2982. Location Map for No Parking along Bridge Street, Ice House Drive and Hawk Avenue Ordinance No. 2982 AN ORDINANCE AMENDING CHAPTER 54 OF THE NORTH RICHLLAND HILLS CODE OF ORDINANCES AND PROHIBITING PARKING ON PORTIONS OF BRIDGE, ICE HOUSE AND HAWK STREETS; ESTABLISHING A PENALTY; PROVIDING FOR PUBLICATION; AND ESTABLISHING AN EFFECTIVE DATE. 1i1'~'HERE~4~, it has been determined by City staff that parking at the location hereinafter described creates unaccepfiable traffic hazards; I~I~~'', TMEREFC~RE, BE IT C~I~C~~I1~lED E~1~ THE CITY C~UI~ICIL CAF THE CITY ~F I~1#~RTH I~ICHLAI~C~ HILL, TEX~~. ~ECTIC~-IU ~; THAT Section 54-~~~(a} of the North Richland Hills Code of C-rdinances is hereby amended by adding thereto new Subsections (~~}, (fig}, (40}, (41 } and (42} which shall read as follows: "SEC. ~~-~~~ t~ntreet P'arl~Ing P'rahlb~Ite~. (a} The parking of and vehicle at the following location is prohibited: (~~} Bridge Street from Ice House Drive to Lake Way except for marked head in parking slots adjacent to the frontage of Walker Creek Elementary School (39} South side of Bridge Street between a point 5o feet East of Ice House Drive and a point 5~ feet West of Ice House Drive. (40} South side of Ice House Drive from a point 5o feet East of Hawk Avenue to a point 50 feet west of Hawk Avenue. (4~} West side of Hawk Avenue from a point 50 feet North of Cardinal Lane to a point 50 feet South of Cardinal Lane. (42} West side of Hawk Avenue from a point 5o feet North of Ice House Drive and a point 5~ feet South of Ice House Drive. (43} East side of Hawk Avenue from a point 5o feet North of the BISD driveway and a point 5o feet South of the same driveway." SECTION 2: Any person, firm or corporation violating Section 54-1G~~a}~37} of the North Richland Hills Code of Qrdinances shall be deemed guilty of a misdemeanor and upon final conviction thereof fined in an amount not to exceed Two Hundred Dollars ~$200.0~}. Each day any such violation shall be allowed to continue shall constitute a separate violation and punishable hereunder. SECTION 3: The City Secretary is hereby authorized and directed to cause the publication of the descriptive caption and penalty clauses of this ordinance as an alternative method of publication provided by law. SECTION 4: This ordinance shall be in full force and effect immediately upon passage. AND IT IS SO ORDAINED. PASSED AND APPROVED this 25th day of February, 2008. By: CITY OF NORTH RICHLAND HILLS Oscar Trevino, Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: George A. Staples, City Attorney APPROVED AS TO CONTENT: Mike Curtis, P.E., Public V1lorks Director clry of NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 2-25-208 Agenda No. F.0 Subject: GENERAL ITEMS clry of NaR71-1 RICNLAND hIILLS Department: Planning and Development Council Meeting Date: 2-25-2008 Presented by: Neesh Sharma, North Texas Tollway Authority Agenda No. F. ~ Subject: GN 2008-0~5 Approve Agreement with North Texas Tollway Authority NTTA} to Allow the City of North Richland Hills to Issue Tolltags -Resolution No. 2008-~~ ~ The North Texas Tollway Authority NTTA} operates several toll facilities throughout the Metroplex including George Bush Turnpike, Dallas North Tollway, Addison Airport Toll Tunnel and Mountain Creek Lake Toll Bridge. To provide convenience for the traveling public the NTTA issues ToIlTags which are electronic transponders that are mounted on vehicle windshields to allow vehicles to pass through toll plazas without stopping. Citizens and the traveling public can acquire ToIlTags at several locations and on the internet by initially charging $40 through a credit card. once acquired, the citizen can take advantage of the drive time saving aspect of day to day use of area tollways and those throughout the State. The ToIITag can also be used for parking and access to DFW Airport. The North Texas Tollway Authority is continuing to build tollways and seeking to establish third party vendor programs to provide convenience for the traveling public. Several cities in Dallas and Collin County have become third party vendors and have set up kiosks for issuing ToIlTags. North Richland Hills would be the second third party vendor in Tarrant County following Benbrook. Becoming a ToIITag vendor will also provide convenience to our local citizens that travel and work throughout the region. Encouraging local citizens to purchase ToIlTags can also have a direct funding impact on our community because the North Texas Tollway Authority releases funds for general transportation improvements based the percentage of ToIITag users from each county. This agreement with NTTA is a nonexclusive distribution agreement allowing the City of North Richland Hills to issue ToIlTags. The City is required to display ToIITag advertising and will receive $5 for each tag issued. This agreement is for a ~ 0 year period with a 30 day termination clause. The City will receive ToIlTags in blocks of 50 and must pay $25 for any unaccounted ToIITag. All transactions are done electronically over the internet. Citizens will enter appropriate information including the description of the automobile, driver's license number and credit card information on a designated computer in the Utility Billing Gffice. City staff will be responsible for verifying the information through an internet link and issue the ToIITag. Staff anticipates that a training and setup date could occur with NTTA within a couple of weeks of approval of the agreement. A computer and appropriate advertising will be set up in the Utility Billing Gffice and eventually amulti-purpose kiosk would be available to the public. Mr. Neesh Sharma, the Marketing Coordinator for NTTA, will be giving a power point presentation and answering questions about the agreement at the City Council work session and in the regular Council meeting. Recommendation: Approve Resolution 2008-0~ ~ authorizing the City Manager to sign an agreement with the North Texas Tollway Authority for issuing ToIlTags in North Richland Hills. RESOLUTION NO. 2008-011 WHEREAS, the City Council desires to authorise the City l~lanager to execute an agreement befir~een the City and the North Texas Toll+ay Authority for the purposes of issuing Toli#ags to local citizens and the traveling public; N~ THEREFC-l~E 8E IT I~ES~LVEt~ BY THE CITY Ct~UN~IL ~F TWE CITY GF Nt~I~TH RIHLAND HILLS, TEAS: SECTION 1. That the City l~lanager of the City of North Richland Nips is authorized to execute a nonexclusive distribution agreement with the North Texas Toliv~ay Authority. PASSED AND APPR~VEC+ this the ~~th day of February, X008. CITY GF 1UGRTH I~I~NLANC~ HILLS E3y. ATTEST: ------ Patricia Hutson, City Secretary ~~~ar Trevino, Mayor APPRGVED AS TO FGRM AND LEGALITY: George A. Staples, City Attorney APPRGVED AS TG CGNTENT: John Pitstick, Planning & Development Director NON EXCLUSIVE DISTRIBUTION AGREEMENT TABLE OF CONTENTS Page 1. GRANT ............................................................................................................................. Z. TERM ............................................................................................................................... . 3. DUTIES OF CITY OF NORTH RICHLAND HILLS ................................................. 3.1 Development of the Business ............................................................................... 3.2 Compliance with Issuing Procedures ................................................................. 3.3 Advertising ............................................................................................................ 3.4 Reports .................................................................................................................. 3.5 Service ................................................................................................................... 3.6 Licensing .............................................................................................................. 4 3.7 Payment for Lost Tags ......................................................................................... 4. DUTIES OF THE AUTHORITY ................................................................................... 4.1 Advice and Promotional and Technical Materials ........................................... 5 4.2 Materials and Tags .............................................................................................. 4.3 Payment to City of North Richland Hills ............................................................. 5. TRADEMARKS ............................................................................................................... 6. PAYMENTS ..................................................................................................................... 7. RELATIONSHIP OF THE PARTIES ........................................................................... 8. CONFIDENTIAL INFORMATION .............................................................................. 9. INSPECTIONS ................................................................................................................ 10. aVVNERSHIP AND TRANSFER REQUIREMENTS ................................................. 10.1 Transfer by the Authority ................................................................................... 7 10.2 Transfer by City of North Richland Hills .......................................................... 10.3 Effect of Consent to Transfer .............................................................................. 11. TERMINATION .............................................................................................................. 11.1 Default ................................................................................................................... 11.2 Non-Default .......................................................................................................... 7 12. RIGHTS AND OBLIGATIONS UPON TERMINATION OF THE LICENSE ......................................................................................................................... . 12.1 Payment of Amounts Owed ................................................................................. 12.2 Compliance ........................................................................................................... 7 12.3 Continuing pbligations ....................................................................................... 12.4 Return of Tags ...................................................................................................... 13. MISCEI,I,ANEpUS ........................................................................................................ 13.1 Severability ........................................................................................................... 13.2 No Waiver ............................................................................................................. 13.3 Cumulative Remedies .......................................................................................... 13.4 Applicable Law ..................................................................................................... S 13.5 Entire Agreement ................................................................................................. 13.6 No other Beneficiaries ........................................................................................ 9 13.7 Canstruction ......................................................................................................... 13.9 Caunterparts ........................................................................................................ 13.9 Notices ................................................................................................................... 9 13.10 Sovereign Immunity ..................................................................... 7 NONEXCLUSIVE DISTRIBUTIaN AGREEMENT THIS NONEXCLUSIVE DISTRIBUTION AGREEMENT this "Agreement"} made and entered into this 25th day of February 2~~8, between NORTH TEXAS TOLLWAY AUTHORITY, a regional tollway authority and political subdivision of the State of Texas the "Authority"} and CITY OF NORTH RICHLAND HILLS, ~"City of North Richland Hills"}. RECITALS: The Authority operates an electronic toll collection system the "System"} on its turnpike projects pursuant to a license agreement With Transcore Corporation ~"Transcore"}. In accordance with that license and other agreements, the Authority issues Tolltag~ transponders collectively, "Tags" or individually, a "Tag"} to the traveling public for use in connection with the System. The parties have agreed that City of North Richland Hills shall have the nonexclusive right to issue Tags upon the terms set forth herein. Now, therefore, in consideration of the mutual promises made herein, the receipt and sufficiency of which are hereby acknowledged, the Authority and City of North Richland Hills agree as follows: GRANT. Subject to the terms of this Agreement, the Authority grants to City of North Richland Hills the nonexclusive right to offer and issue Tags to its customers at the locations listed on Exhibit A attached hereto and incorporated herein. The Authority reserves the unrestricted right to grant other entities the right to offer and issue Tags on terms and conditions the Authority deems appropriate in any location, area or market. 2. TERM. The initial term of this Agreement shall be ten ~~ o} years, commencing on the date first written above and terminating at Midnight on February 25, 2~ ~ 8. This Agreement will automatically renew for two ~2} additional three ~3) year terms}, upon the same terms and conditions unless either party notifies the other, in writing, its intention not to renew this Agreement at least ninety X90} days prior to the expiration of the existing term. 3. DUTIES OF CITY OF NORTH RICHLAND HILLS. 3. ~ Development of the Business. City of North Richland Hills shall utilize reasonable efforts to promote, advertise, market and issue Tags. 3.2 Compliance with Issuing Procedures. In connection with the issuance of each Tag, City of North Richland Hills shall comply with the provisions set forth in this Agreement, including those contained in the form of "Procedures for Issuing Tags" attached hereto as Exhibit B the "Procedures"}. Without limiting the provisions of the Procedures, City of North Richland Hills shall furnish Tag applications to customers requesting same. City of North Richland Hills shall accept and review completed Tag applications and verify that ~a}all required information has been provided in a complete and legible manner by the applicant, fib} the applicant holds a current driver's license and (c} the applicant has a valid credit card of a type accepted by the Authority and that the card is in the name of the applicant. City of North Richland Hills shall assign a Tag number to the applicant from City of North Richland Hills available inventory, said Tag numbers to be assigned in numerical sequence beginning with the lowest available number. City of North Richland Hills then shall transmit by facsimile the completed application to the Authority's Tag Store at the location designated in Section 13.9 below. Gity of North Richland Hills shall issue and deliver a Tag only after fix} the Tag Store transmits back to City of North Richland Hills the applicable account information and ~y} City of North Richland Hills verifies the applicant's driver's license against the completed application. City of North Richland Hills then shall provide the Tag owner's kit to the applicant and shall instruct the applicant to read and follow the instructions contained therein. To the extent of any conflict between this Section 3.2 and the Procedures, the Procedures shall control. The Authority reserves the right to amend, supplement or supersede the Procedures at any time and, thereafter, City of North Richland Hills shall, within a reasonable time after receiving written notice of the same, comply with said amended, supplemented or superseding Procedures. If the City of North Richland Hills so chooses, a computer process available to the public in the designated location shall supplant the above facsimile process and the Authority will train City of North Richland Hills personnel in conducting such a process. 3.3 Advertising. Any advertising or marketing of Tags by City of North Richland Hills shall be in strict compliance with the Procedures, and all costs and expenses attributable thereto shall be the responsibility of City of North Richland Hills. 3.4 Re orts. City of North Richland Hills shall maintain books and records of the issuance of Tags. City of North Richland Hills shall provide the Authority with weekly reports, in substantially the same form as set forth in Exhibit "C", attached hereto and incorporated herein for all purposes, reflecting such sales and other related information as the Authority may require, including weekly spread sheets from each store location indicating all Tags furnished by the Authority, all Tags issued, all Tags in inventory, and any lost or unaccounted for Tags. Such reports shall be submitted to the Authority at the address set forth in Section 13.1 ~ no later than the 1 nth day of the month for the preceding month's operations. 3.5 Service. City of North Richland Hills shall maintain high standards of service to all customers who purchase Tags and refrain from offering or issuing any Tags under circumstances that would reflect negatively on the Authority, the Tags or the System. 3.6 Licensing. City of North Richland Hills shall comply with all applicable federal, state and local laws, rules and regulations and timely obtain all licenses, certificates or permits, if any, required for the offer and sale of Tags. 3.7 Payment for Last Tags. City of North Richland Hills shall pay the Authority $25.80 for each lost or unaccounted for Tag as provided in Section 4.2 below. 4. DUTIES ~F THE AUTHORITY. 4. ~ Advice and Pramatianal and Technical Materials. The Authority may, from time to time, provide City of North Richland Hills advice with respect to the promotion of Tags, as well as educational training updates at no cost to City of North Richland Hills, which City of North Richland Hills may use and/or follow in its sole discretion. The Authority may also make available reasonable quantities of brochures, and instructional and point of purchase materials as the Authority, in its sole judgment, deems appropriate. 4.2 Materials and Tays. The Authority shall, at its expense, make available to City of North Richland Hills the Tag applications and the Tag owner's kits. The Authority shall provide Tags to City of North Richland Hills in boxes of 240 Tags. Upon receipt of Tags by City of North Richland Hills, City of North Richland Hills assumes responsibility for them unless and until said Tags are properly issued to customers or returned to the Authority in accordance with this Agreement. City of North Richland Hills shall pay the Authority $25.00 for each Tag that is lost or unaccounted for after receipt thereof by City of North Richland Hills, and before issuance to any customer, said payment to be made by the ~ 0th day of the month next following the month in which City of North Richland Hills knew that the Tag was lost or unaccounted for. City of North Richland Hills shall promptly notify and pay the Authority with respect to all lost or unaccounted for Tags. To facilitate timely delivery of Tags, each store location shall contact the Tag Store and order additional Tags when said store has 20 or fewer Tags. Within five ~5} business days following the termination of this Agreement, City of North Richland Hills shall return all un-issued Tags to the Authority, and all unreturned and un-issued Tags shall be conclusively deemed lost or unaccounted for, thereby unconditionally obligating City of North Richland Hills for the $25.00 per Tag payment described above. 4.3 Payment to City of Narth Richland Hills. The Authority shall pay to City of North Richland Hills $5.00 for each Tag account opened by City of North Richland Hills in compliance with this Agreement and the Procedures. The payment shall be made on the ~0t" day of each month for the accounts opened in the preceding month by a single check to City of North Richland Hills, provided that City of North Richland Hills provides supporting information indicating the number of accounts opened by each store, as identified by store number. Within five ~5} business days following the termination of this Agreement, the Authority shall be unconditionally obligated to pay City of North Richland Hills all outstanding amounts for accounts opened as provided herein. 5. TRADEMARKS. City of North Richland Hills acknowledges and agrees that Transcore and/or one of its affiliates is the owner of the trademark "ToIITag~" the "Trademark"}. City of North Richland Hills shall display and otherwise utilize the trademark in compliance with the Procedures. Without limiting the foregoing, City of North Richland Hills shall display in good taste and a dignified manner the Trademark for the sole purpose of informing customers that City of North Richland Hills issues Tags; provided, however, that City of North Richland Hills shall discontinue the display or use of the Trademark or change the manner in which the Trademark is displayed or used when requested, in writing, to do so by the Authority. City of North Richland Hills shall not disparage the Trademark. ~. PAYMENTS. City of North Richland Hills shall make a reasonable effort to provide the Authority with a monthly request for payment and supporting information for all amounts owing pursuant to Section 4.3 not later than the ~ 5th day of each month. City of North Richland Hills's failure to provide the information as provided in this Section shall not excuse the Authority's obligation to tender the payment described in Section 4.3. The Authority shall be obligated to diligently process any and all requests for payment made by City of North Richland Hills, in accordance with this Section, which are not received by the 5th day of each month. Under no circumstances shall the Authority remit payment to City of North Richland Hills for requested amounts after the both day of the next succeeding month. 7. RELATIt~NSHIP QF THE PARTIES. The parties acknowledge and agree that this Agreement does not create a fiduciary relationship between City of North Richland Hills and the Authority, that the relationship between City of North Richland Hills and the Authority is that of an independent contractor, and that nothing in this Agreement is intended to make either party a general or special agent, joint venture partner, franchiser, franchisee or employee of the other for any purpose whatsoever. City of North Richland Hills agrees to conspicuously identify itself in all dealings with customers, business personnel and others as an independent contractor distributing Tags pursuant to a nonexclusive agreement with the Authority. 8. CQNFIDENTIAL INFQRMATIQN. The Authority possesses, either by license or otherwise, certain unique confidential and proprietary information and trade secrets consisting of information, records, data, processes, methods, techniques, products and knowledge owned, developed, compiled or acquired by the Authority. City of North Richland Hills acknowledges that the Authority is the exclusive owner of such information. City of North Richland Hills shall use such information only in connection with the offer and issuance of Tags under this Agreement and shall maintain the absolute confidentiality of such information during and after the term of this Agreement. Without limiting the foregoing, City of North Richland Hills shall protect the confidentiality of all Tag records, account information, credit card information and other data and shall not disclose such records, information or data to any party other than authorized personnel of the Authority, unless disclosure of the information is required by law, statute o r co u rt o rd a r. 9. INSPECTIQNS. To determine whether City of North Richland Hills is complying with this Agreement, the Authority shall have the right, at any reasonable time after providing three ~3} business days advance written notice to City of North Richland Hills, to inspect and copy any books, records and documents of City of North Richland Hills relating to the issuance of Tags. 1~. OWNERSHIP AND TRANSFER REQUIREMENTS. 10.1 Transfer by the Authority. This Agreement is fully transferable by the Authority and shall inure to the benefit of any person or entity to whom it is transferred, or to any other legal successor to the Authority's interest in this Agreement. 10.2 Transfer by City of North Richland Hills. City of North Richland Hills understands and acknowledges that the rights and duties created by this Agreement are personal to City of North Richland Hills and that the Authority has entered into this Agreement in reliance on City of North Richland Hills character, skill, aptitude, attitude, business ability and financial capacity. Accordingly, this Agreement may not be transferred without the Authority's prior written approval. Any transfer that is made without the Authority's prior written approval shall constitute a breach of this Agreement and shall convey no interest. 1~.3 Effect of Consent to Transfer. Any transfer of this Agreement as provided in this Section shall not constitute a waiver of any claims either party may have against the other, nor shall it be deemed a waiver of either party's right to demand exact compliance with any of the terms or conditions of this Agreement by any transferee. 11. TERMINATION. 11.1 Default. This Agreement shall terminate if a party fails to correct its noncompliance with any provision of this Agreement within five ~5} business days after receipt of written notice of said noncompliance from the other party. 11.2 Non-Default This Agreement shall terminate upon thirty ~3a} days prior written notice by either party to the other party of its intent to terminate this Agreement for any reason. 12. RIGHTS AND OBLIGATIONS UPON TERMINATION OF THE LICENSE. 12.1 Payment of Amounts Owed. The Authority and City of North Richland Hills each agree to pay within ten X10} business days after the effective date of termination of this Agreement all amounts owed to the other party that are then unpaid. 12.2 Compliance. City of North Richland Hills agrees that immediately upon the termination of this Agreement, City of North Richland Hills shall: ~a} Cease to directly or indirectly at any time identify Gity of North Richland Hills or any business with which City of North Richland Hills is associated as being authorized to issue Tags; fib} not use the Trademark or any colorable imitation of the Trademark in any manner or for any purpose, or use for any purpose any other commercial symbol that suggests or indicates an association or continuing contractual relationship with the Authority, except as required by law, statute or court order; and ~c} Not interfere with the new or ongoing issuance of Tags elsewhere. X2.3 Continuing__abligations. All obligations of this Agreement which expressly or by their nature survive the expiration, termination or transfer of this Agreement shall continue in full force and effect after and notwithstanding its expiration, termination or transfer until such are satisfied in full or by their nature expire. X2.4 Return of Tags. Upon termination of this Agreement for any reason, City of North Richland Hills shall, within a reasonable time, return to the Authority, at the location designated in Section ~ 3.9 below, all materials provided by the Authority relating to Tags. ~3. MISCELLANEOUS. ~3.~ SeverabilitY. Each provision of this Agreement is deemed to be severable and independent of any other provisions. If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. ~ 3.2 No Waiver. If, at any time, either party does not exercise a right or power available to that party under this Agreement, or as allowed by law, or does not insist on the other party's strict compliance with the terms of this Agreement, or if there develops a custom or practice which is at variance with the terms of this Agreement, neither party shall be deemed to have waived any right to demand exact compliance with any of the terms of this Agreement at a later time upon written notice to the other. Similarly, either party's waiver of any particular breach or series of breaches under this Agreement, shall not affect either party's right to enforcement with respect to any later breach. It shall also not be deemed to be a waiver of any breach of this Agreement for either party to accept payments which are due to it under this Agreement. X3.3 Cumulative Remedies. The rights and remedies specifically granted by this Agreement to either party shall not be deemed to prohibit either party from exercising any other right or remedy provided under this Agreement or permitted by law or equity. X3.4 Applicable Law. THIS AGREEMENT SHALL BE INTERPRETED AND CONSTRUED UNDER TEXAS LAW AND EXCLUSIVE VENUE SHALL LIE IN COLLIN C4U NTY, TEXAS. ~3.~ Entire Agreement. This Agreement, including introduction, the Procedures and all other exhibits to it, constitutes the entire agreement between City of North Richland Hills and the Authority, and there are no other oral or written understandings or agreements between City of North Richland Hills and the Authority concerning the subject matter of this Agreement. Except as expressly provided otherwise in this Agreement, this Agreement may be modified only by written agreement signed by both City of North Richland Hills and the Authority. ~ 3.6 No ether Beneficiaries. The Authority shall not, because of this Agreement, be liable to any person or legal entity who is nat a party to this Agreement, and no other party shall have any rights because of this Agreement. X3.7 Construction. All headings of the various Articles and Sections of this Agreement are for convenience only and do not affect the meaning or construction of any provision. All references in this Agreement to masculine, neuter or singular usage shall be construed to include the masculine, feminine, neuter or plural usages wherever applicable. The language of this Agreement will in all cases be construed in accordance with its fair meaning and not strictly for or against the Authority or City of North Richland Hills. X3.8 Counterparts. This Agreement may be executed in counterparts, each of which will be an original and all of which will constitute but one and the same instrument. X3.9 Notices. Any and all notices required or permitted under this Agreement shall be in writing and shall be personally delivered or mailed by expedited delivery service or certified or registered mail, return receipt requested, first class postage prepaid, or sent by prepaid facsimile provided that the sender confirms the facsimile by sending an original confirmation copy thereof by certified or registered mail or expedited delivery service within three days after transmission thereof) to the respective parties at the following addresses unless and until a different address has been designated by written notice to the other parties: Notices to the Authority: Notices to City of North Richland Hills: North Texas Tollway Authority P.~. Box 2G9729 Plano, Texas 7502G Attn: Executive Director City of North Richland Hills Attn: City Manager 739 NE Loop 829 North Richland Hills, TX 7~~89 Any notice shall be deemed to have been given at the time of personal delivery or, in the case of expedited delivery service, upon receipt or, in the case of registered or certified mail, three days after the date and time of mailing and any notice given hereunder by facsimile shall be deemed to have been given upon receipt thereof. 13.0 Sovereign Immunity. The parties agree that City of North Richland Hills has not waived its sovereign immunity by entering into and performing the obligations set forth in this Agreement. The parties now execute and deliver this Agreement as of the date first written above. THE CITY ~F NQRTH RICHLAND HILLS NORTH TEXAS TOLLINAY AUTHORITY By: Name: Title: ~y: _ Name: Title: EXHIBIT A LGCATICNS ISSUING TAGS City of North Richland Hills Utility Billing Office 730'1 N E Loop 820 Morth Richland Hills, TX 76'180 EXHIBIT B PRGCEDURES FGR ISSUING TAGS NTTA will provide a web link specifically for your location (this should be saved under your "favorlteS"). URL: htt~~.ll~~t~.r~_.n.tt...arc~f~~llk~~,~cl~~~c~1r~~~~_%rr_r~n.~.~..~t~.r~t~.~_p~ An NTTA representative will come out to your location to train employees on the process of issuing ToIlTags. '14. PROCEDURES FAR ISSUING TAGS • Customer must fill out the application and gives it to the employee. • Employee will go onto the Internet site and sign in (each employee will be given a user name and password from the NTTA IT Department}. • Employee must verify the Driver License and Credit Card information. • Employee will enter the information below. o Name o Address o Phone Number o Email Address cif provided) • Employee must ask the customer "how patron heard about ToIITag program". • Employee will choose the appropriate option and click save. • Next screen employee will enter the Credit Card information and billing address. • Click Save. • Next screen enter the vehicle information below for each vehicle listed. o License Plate Number o Year 67318: 53839: DALLpS:758082.~ o Color o Make and Model o DNT Number Located on the ToIITag} • Make sure appropriate ToIITag is entered for each vehicle. • Clicks save. • Click view transaction. • Next screen will show all of the information. • Click Check fut. • Print the next screen and give it to the customer along with the ToIITag inside the metallic bag} and Starter Kit. EXHIBIT C June 30, 2005 Effective June 30, 2005 the following procedure needs to be followed when issuing a ToIITag: • I n the case that an application is filled out by a customer, the completed application needs to be locked in a secure location. once per month an NTTA representative will be coming out to each branch to pick up the completed applications. This is a security procedure that will protect the customer as well as your branch. If you have any questions, please call Support Services at 214-224-2124 or Neesh Sharma at 214-461-2053. Thank you, North Texas Tollway Authority '~ ~ ~ ~ ai ~ ~ ~~ ~ ~ ~~ ~ ~ ~ ~, ~~w a :~ ~` .~ ~ ~ ~ ~. „ ~~ j ~! ~ w 1 ;« ~~ ?« 1 ^~ ~~ ~ ~ ~ ~ `~` 1 w° ix :: ~~ 1 ,yrrfliYM~iifYiYfwl ~~ ~ ::'~° « lx :: .~~..a.' f ~, . S i ~ ~ ~ ~ ••• tirw~s~r~rrr~s ~ia~~rr~4 •~rs l ~ ~ SJaftP9Y*~ r.tytli~ ~ ~, .~ ~~ >: ~; ~ ~: ~ ~u~~l~ iR ''SSfff~ljjj,,,' .. -. G WY Clry aF NC3RTH RlCHLAND HILLS Department: Finance Council Meeting Date: 2-25-2008 Presented by: Larry Koonce Agenda No. F.2 Subject: CN 2008-~~ 6 Presentation of Fiscal Year 20x7 Audited Financial Report The results of the fiscal year ~FY} 2007 Annual Financial Report for the City will be jointly presented by Director of Finance, Larry Koonce and a representative of the independent audit firm of Pattillo, Brown & Hill. Larry Koonce will review the year-end results and fund balance data for the various Funds General, Enterprise, etc.} as well as other financial impacts. Pattillo, Brown & Hill will present the audit opinion and be available to respond to questions regarding the report. The auditor's opinion is an unqualified opinion or "clean" opinion again this year. This means that they have found the Financial Statements of the City of North Richland Hills to present fairly our financial position. Included in the Council packet is a copy of the financial report and attached to the cover sheet is a summary of the various City Funds showing the results of the changes in balances from 2006 to 2007. As of September 30, 2007, the General Fund undesignated balance was $8,307,638, a $91,449 increase over FY 2006. In fiscal year 2007, in addition to the $8.3 million undesignated balance, $2,522,920 of the General Fund balance continues to be designated for economic development. In FY 2007, $250,360 continues to be designated for the savings incentive program to reward departments and employees for innovative approaches to business solutions approved by Council. Also in FY 2007, $347,400 of the General Fund balance was again designated for the long range replacement of Insurance Fund reserves approved by Council. Fund balance in the amount of $1,050,000 was designated for 820 facility planning. Fund balance in the amount of $700,000 was designated for rail station development. New in fiscal year 2007 is a designation for retirement stabilization in the amount of $250,000. This will help us in future years to soften the impact of TMRS increases. Also new in 2007 fiscal year is a designation for utility billing assistance in the amount of $53,739 as part of the TXU settlement. City Council's goal is to have at least 60 days of operations in undesignated reserve. The ending $8.3 million undesignated balance represents 82 days of fiscal year 2008 General Fund budgeted operating expenditures. The Donations Fund ended the year with a balance of $564,144, an increase of $91,935. The Parks and Recreation Facilities Development Fund made $801,150 in budgeted capital expenditures for Parks in fiscal year 2007. This fund ended the year with a $4.5 million balance, an increase of $400,000. The Crime Control District Fund ended fiscal year 2007 with a $1.6 million transition fund balance compared to the $1.3 million revised budget estimate. The Insurance Fund finished the year with $3,518,411 in cash. This was an increase of $1,948,237. This is the result of a good claims year and may be an indication that wellness awareness is helping. The Golf Course Fund had a net decrease in cash of x$234,259} in fiscal year 2997. The drawdown in cash balances can be attributed mainly to debt service payments in the amount of $553, 000 i n fisca I year 2997. The Equipment Services Fund had an increase in cash of $142,458 in fiscal year 2007. Insurance recovery proceeds from storm damage totaled $249,855. The City replaced $244,551 of equipment in fiscal year 2007. Cash reserves for the replacement of City equipment in total was $2,478,745 at year end. The Building Services Fund had a balance of $2,754,384. Aver $1.8 million was spent for facility up-keep and maintenance in fiscal year 2007. This includes all personnel, supplies and maintenance, and capital facility improvements. The Information Services Fund spent nearly $2.5 million for computer and telecommunication services in fiscal year 2007. This includes all personnel, supplies and maintenance, and equipment replacement. The Information Services Fund ended the year with $2.9 million in cash reserves for computer and telecommunications replacement. The Water and Sewer Fund realized an increase in cash balances of $831,484 for the year. This is the result of increases in water and sewer impact fees in fiscal year 2007. This increase in cash will be used for pay-as-you-go capital improvements that had been planned to be financed with Certificates of obligation ~Ca's} in 2008. The Water and Sewer fund used cash in the amount of $1,558,518 for system improvements, equipment and debt service during the year. The Aquatic Park Fund had a net increase in cash of $441,397. This increase included uses of cash in the amount of over $450,000 for debt service payments. The Aquatic Park Fund ended the year with just over $3.9 million in cash. All operating funds ended the year with positive cash balances. overall, the City of North Richland Hills' results of operations during the 2007 fiscal year, as well as the financial position at year-end reflect a sound fiscal condition. This is in fulfillment of Council Goal 4: Financially Responsible City Government. Recommendation: To accept GN 2008-01G the 2007 fiscal year Audited Financial Report as presented. FUND BALANCE SUMMARY FOR FISCAL YEAR 2007 AUDITED AUDITED INCREASE! BALANCE AS OF BALANCE AS OF (DECREASE) FUND 09/30/0fi 09/30/07 FY 2007 General Fund (UnreservedlUndesignated} $ 8,216,189 $ 8,307,638 $ 91,449 General Fund Designated for Economic Development $ 3,000,000 $ 2,522,920 $ (477,080} General Fund Designated for Savings Incentive $ 250,360 $ 250,360 $ - Program General Fund Designated for Insurance Restoration $ 457,200 $ 347,400 $ (109,800} Plan General Fund Designated for 820 Facility Planning $ 500,000 $ 1,050,000 $ 550,000 General Fund Designated for Rail Station Project $ 400,000 $ 700,000 $ 300,000 General Fund Designated for Retirement Stabilization $ - $ 250,000 $ 250,000 (TMRS) General Fund Designated for utility Billing Assistance $ - $ 53,739 $ 53,739 (TXU Settlement) General Debt Service Fund $ 2,088,332 $ 2,383,141 $ 294,809 Utility Fund Operating and Restricted Cash $ 18,820,765 $ 19,652,249 $ 831,484 Golf Course Fund (Operating & Restricted Cash} $ 487,889 $ 253,630 $ {234,259} Aquatic Park Fund (Operating & Restricted Cash} $ 3,461,915 $ 3,903,312 $ 441,397 Building Support Services Fund Regular $ 1,854,286 $ 1,797,101 $ (57,185) Building Support Services Insurance Recovery $ - $ 967,283 $ 967,283 Proceeds (Summer 2007 Storm Damage} Equipment Support Services Fund Regular $ 2,336,286 $ 2,228,889 $ (107,397} Equipment Support Services Fund insurance Recovery $ - $ 249,856 $ 249,856 Proceeds (Summer 2007 Storm Damage} Settlnsurance Fund $ 1,570,174 $ 3,518,411 $ 1,948,237 Information Services Fund {Operating & Restricted $ 2,491,420 $ 2,922,776 $ 431,356 Cash Reserved for Improvements) Promotional Fund $ 189,621 $ 288,213 $ 98,592 Donations Fund $ 472,209 $ 564,144 $ 91,935 Special Investigation Fund $ 461,888 $ 464,174 $ 2,286 Drainage Utility Fund $ 442,755 $ 575,618 $ 132,863 Permanent Street Maintenance Fund $ 4,962 $ 725,920 $ 720,958 Sidewalk Maintenance Fund $ 7,852 $ 58,759 $ 50,907 Gas Development Fund $ 755,433 $ 545,057 $ (210,376} Traffic Safety Fund (New in FY 2007} $ - $ 1,815 $ 1,815 Park & Recreation Facilities Development Fund $ 4,108,628 $ 4,526,487 $ 417,859 Economic Development Fund (Fund Balance} $ 716,288 $ 1,225,466 $ 509,178 Crime Control & Prevention District Fund (Fund $ 1,932,202 $ 1,643,100 $ (289,102} Balance) N.+ew NR3~i r~t~biic d$rary~ t~~raring e~t38 T~. Besr s YET TO COMS CITY OF NORTH RICHLAND HILLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENQED SEPTEMBER 30, 2007 T. Oscar Trevino, Jr. Mayor Suzy Compton Place 3 Mayor Pra Tem John Lewis Place 1 Dr. Tim Barth Place 4 Scott Turnage Place 6 Larry J. Cunningham City Manager Jared Miller Assistant City Manager Ogden "Ba" Bass III Assistant City Manager Karen Bostic Managing Director Larry Koonce Director of Finance Ken Sapp Place 2 David Whitson Place ~ Tim Welch Place 7 Prepared by: Finance Department N ~~H This page intentionally 1e~ blank. City of North Richland Hills, Texas Comprehensive Annual Financial Report For Fiscal Year Ended September 30, 2007 Pa e s Title Page I Table of Contents III - V INTRaDUCTORY SECTI~IN Letter of Transmittal 3 - 7 GFOA Certificate of Achievement 9 Organizational Chart 10 List of Principal Officials 11 FINANCIAL SECTIGN Independent Auditors' Report 15 -16 Management Discussion and Analysis 17 - 28 BASIC FINANCIAL STATEMENTS Government,uvide Financial Statements: Statement of Net Assets 32 - 33 Statement of Activities 34 - 35 Fund Financial Statements: Balance Sheet -Governmental Funds 3fi - 37 Reconciliation of the Balance Sheet of Governmental Funds to the Statements of Net Assets 39 Statement of Revenues, Expenditures, and Charges in Fund Balances - Governmental Funds 40 - 41 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 43 Statement of Net Assets -Proprietary Funds 44 - 47 Statement of Revenues, Expenses, and Changes in Net Assets -- Proprietary Funds 48 - 49 Statement of Cash Flows -Proprietary Funds 50 - 51 Notes to Basic financial Statements 53 - 84 City of North Richland Hills, Texas Table of Contents Required Supplementary Information: Pa e s Schedule of Funding Progress -- Texas Municipal Retirement System 87 Schedule of Revenues, Expenditures, and Changes in Fund Balance -- Budget and Actual General Fund 88 - 89 Crime Control and Prevention District 90 tither Supplementary Information: Non-major Governmental Funds: Combining Balance Sheets 92 - 93 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 94 - 95 Budget to Actual Comparisons -- Governmental Funds: Schedule of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual: Promotional Fund 9G Donations Fund 97 Drainage Utility Fund 98 General Debt Service Fund 99 Sales Tax Revenue Debt Service Fund 100 Internal Service Funds: Combining Statement of Net Assets 102 - 103 Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets 104 - 105 Combining Statement of Cash Flows 10fi - 107 Non-Major Discretely Presented Component Units: Combining Statement of Net Assets 111 Combining Statement of Activities 112 IV City of North Richland Hills, Texas Table of Contents STATISTICAL SECTIGN UNAUDITED) Pa e s Government Wide Information: Net Assets by Component Table 1 115 Changes in Net Assets Table 2 116 - 117 Fund Information: Fund Balances - Govemmental Funds Table 3 118 Changes in Fund Balances -Governmental Funds Table 4 120 - 121 Assessed and Actual Value of Taxable Property Table 5 122 Property Tax Rates -Direct and Overlapping Gavemments Table 6 123 Principal Taxpayers Table 7 124 Property Tax Levies and Collections Table 8 125 Ratios of Outstanding Debt by Type Table 9 126 Computation of Direct and Overlapping Debt Table 10 127 Computation of Legal Debt Margin Table 11 128 Pledged Revenue Coverage Table 12 129 Demographic Statistics Table 13 130 Principal Employers Table 14 131 Full-time Equivalent Municipal Employees by FunctionlProgram Table 15 132 - 133 Operating Indicators by FunctianlPragram Table 16 134 - 135 Capital Asset Statistics by FunctianlProgram Table 17 136 -137 v N ~~H This page intentiona!!y 1ef~ blank. Introductory Section lei ~H This page in~en~ionally 1ef~ blank. Finance CITY ~F N4RTH RICHLAND HILLS February 21, 2008 To the Honorable Mayor, Members of City Council, City Manager, and Citizens of the City of North Richland Hills, Texas: State law requires that all local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America ("GAAP"} and audited in accordance with auditing standards generally accepted in the United States of America by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the City of North Richland Hills, Texas (the "City"} far the fiscal year ended September 30, 2007. This report consists of City management's representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in the report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the Cites comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City's financial statements have been audited by Pattillo, Brown, & Hill, LLP, a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City far the fiscal year ended September 30, 2007, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City's financial statements far the fiscal year ended September 30, 2007, are fairly presented in conformity with GAAP. The independent auditors' report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the City was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City's separately issued Single Audit Report. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the farm of Management's Discussion and Analysis ("MD&A"}. This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The Cites MQ&A can be found immediately following the report ofthe independent auditors. P.O. Box 820609 • North Richland Hills, Texas • 76182-0609 7301 Northeast Loop 820 • Finance • 817-427-6166 • Fax 817-427-6151 Profile of North Richland Hills The City, incorporated in 19x3, is a growing community located in the heart of the Dallas/Fart Worth Metraplex. The City's estimated population is 64,Ob0 for 2007. The City is also home to aver 1,200 commercial and industrial businesses. The third largest city in Tarrant County, North Richland Hills is only 10 minutes from downtown Fort Worth and 2b minutes from downtown Dallas. Interstate Laop 820 and Texas 121/183 (Airport Freeway)traverse the City, providing freeway access to five additional interstates and numerous US and state highways. The City is also conveniently located 10 minutes from DallaslFart Worth Intemational Airport and 15 minutes from Alliance Airport. D/FW Intemational Airport has aver 2,000 flights daily with non-stop service to all major North American cities and many overseas destinations. The Alliance development facilitates the transport of merchandisethrough both the airport and the Burlington Northern/Santa Fe Intermadal Facility. North Richland Hills operates under a charter adapted in 19G4 which provides far aCouncil-Manager farm of government. The Mayor and seven Council members are elected at large. The City Council is responsible far all matters of policy and is also the authority far levying taxes, securing revenues, authorizing expenditures of City funds, and incurring City debts. The City Manager is directly responsible to the City Council. An organizational chart follows to show the various levels of responsibility. The City provides a full range of services. These services include police and fire protection; municipal court operations; the construction and maintenance of streets and infiastructure; parks, library, and recreational activities including tennis center operations; neighborhood services activities; planning and inspections; andthe operations of a water and wastewater system, a golf course, and a public waterpark. A private contractor, through a franchise agreement, provides solid waste collection and disposal services for the City. The annual budget serves as the foundation for the Cites financial planning and cantral. The City maintains budgetary controls to ensure compliance with provisions in the annual budget adopted bythe CityCouncil. Annual operating budgets are adopted far the General Fund, certain Special Revenue Funds, Debt Service Funds, Enterprise Funds, and Internal Service Funds. Project-length financial plans are adapted far the Capital Project Funds. The level of budgetary control (that is, the level at which expenditures/expensesconnot legally exceed the appropriated amount} is established at the fund level. Detail cantral is accomplished by maintaining apprapriatians,encurnbrances, and expended balances by line item within each operating department, within each operating fund. All annual appropriations lapse at the end of the fiscal year. Budgetary data for proprietaryfunds has not been presented since reporting on such budgets is not legally required. Priorto September 1, the City Managersubmits to the City Council a proposed operating budgetfarthe fiscal year commencing the fallowing October 1. The operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted to obtain taxpayer comments. Prior to September 30, the budget is legally enacted through passage of an ordinance. The appropriated budget is prepared byfund, department, and division. The City Manager is authorized to transfer budgeted amounts between departments within any fund. Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts} outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be re-appropriated and honored during the subsequent year. Transfers of appropriations between funds require the approval ofthe City Council. Budget-ta-actual comparisons are provided in the reportfar each individual governmental fundforwhich an appropriated annual budget has been adopted. For the general fund and the crime cantral and prevention district fund, comparisons begin an page 88 in the required supplementary information segment of the financial statements. The comparisons far other gavemmental funds with appropriated annual budgets are presented in the gavemmental fund subsection of this report, which starts on page 9fi. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates. Localeconomy-The nationwide housing crisis and credit crunch have impacted the City of North Richland Hills in relatively predictable ways. New home starts, and the corresponding residential permit values, fell significantly from 2006 to 2007. Additionally, commercial permit values were dawn fiom 2006 as well. Unlike the national economythough, NRH has not seen a decrease in existing home values and sits in the middle of the Fart WorthlDallas economy. A diverse mixture of business services, retail outlets, industrial centers, and various manufacturing facilities contribute to the stability in the property tax base. Major industries with headquarters or divisions located within the Cites boundaries include a corrugated box manufacturer, an insurance company, several major superstores, and numerous financial institutions. 2007 saw 125 new businesses locate in the city, which was an increase of 26 over 2006 and resulted in a net gain of 9 businesses. More important than the number of businesses added was the amount of previously vacant space thatwas occupied. Ross for Less, Burlington Coat Factory, Lane Star Baby& Kids, NYTEX Sports Centre, Fitz Manufacturing, Lets Talk.com and Gateway Church combined to take 493,000 square feet of space. Other businesses like Harbor Freight Tools, McAlister's Deli and Leapin' Lizards also came into the market to fill up vacancies. The addition of retail businesses, as well as strong performance bythe City's existing retail giants, led to a $46,000,000 increase in taxable sales over 2006. In 2007, North Hills Hospital completed their $33,000,000 expansion and completed their new Heart Center. The hospital neared completion of their Outpatient Surgery Center in the recently completed Medical Office Building adjacent to their main facilities. When their Senior Center is completed in 2008, the hospital will occupy approximately 49,000 square feet of the total 80,000 square foot MOB. Growth at the hospital has led to an increased demand for professional and medical office buildings, including Pavilion Par1c. This ofhce cammunitywill consist of 11 separate office buildings. Three buildings are complete, two are under construction and demand remains high for the remaining lots. 2007 saw the opening of The Venue at Hometown. Demand has been so strong far the residential units that a companion building is being proposed next to the site. One restaurant is now open, and two mare are under construction. Demand for the office component of the project is expected to increase as the other components flourish. As predicted in 2006, the demolition ofthe former mall has created revitalization along Boulevard 26 with many new businesses opening. This trend is expected to continue for the coming year. Longterm financial planning - In February 2003, the voters authorized the development of twenty-two street projects (arterial, collector, and residential), two drainage projects, and four municipal facilities projects with the passage of four propositions in the 2003 Bond Election. The authorized election package totaled $37,210,000 for the aforementioned projects. The City Council and management believe development ofthese projects is needed to improve infrastructure and provide essential services to its citizens. The projects are expected to continue through the year 2010. At least annually, management reviews and updates long-range financial plans for the general operations of the City as well as the proprietary activities. Forecasts are prepared using conservative growth estimates for major sources of revenue. Maintaining this conservative approach, coupled with an aggressive debt repayment policy, have assisted in the City maintaining a favorable bond rating since 1997. Analysis is continuously updated to reflect newbond issues and the repayment thereof, as well as updates to estimates based an newdevelopments, historical trends, changes in applicable legal requirements, and Council and management priorities. The plans for the internal service funds include the accumulation of resources far meeting both current and future needs. Far example, building and equipment support services as well as information services collect userfeesto meet current maintenance needs as well as to meet future capital replacement needs. Similarly, the Cites policy with regard toself-insurance premiums has been to collect sufficient amounts to cover current health and dental claims as well as additions to reserves for future claims. However, in the current environment of double-digit percentage increases in health care costs, this task has become a challenge. The drawdown of reserves over the last several years prompted the City Council to adopt a strategy for rebuilding insurance reserves over asix-year period that began in fiscal year 2005. In an effort to reduce draws on reserves, a restructured health plan for employees and dependents was implemented in calendar year 2004. Employees may choose from three plan levels which determine costs to be assumed by the employee. Additional plan changes were enacted for calendar years 2006 and 2007. Self-insurance operations are funded by charges to other funds and premiums from employees who choose higher levels of coverage for themselves, retiree coverage, and dependent coverage. Similar plans forthebuild-up of reserves exist for the City's enterprise operations. Funds are set aside to meet future capital replacement needs such as infrastructure replacement and capital asset acquisitions. This approach has allowed the City's water and sewer operation to meet the majority of its capital replacement needs with the issuance of minimal debt. Additionally, the fiscal year 2007-2008 Water and Sewer Fund operating budget includes base rate changes for water and sewer service which includes an amount for the building of reserves. N RHzO, the City's waterpark, has funded $2 million in new attractions and infastructure improvements by utilizing cash reserves accumulated fi-am operations. Cash management policies and practices -The Cites current bank depository contract with Bank of America expires on September 30, 2009. Cash temporarily idle during the year was invested in four public funds investment pools and Agency securities. The maturities of the investments range fi-om ovemight to almost two years with the average maturity of nine to twelve months. The average yield on investments forfiscal year 2007 was 5.06°~ compared vuith 4.19°~ forthe prior year. The portfolio's weighted average maturity (`1NAM"} at the end of the fiscal year was 213 days which represents an 11 day increase from last year's WAM of 202 days on September 30, 2006. At fiscal year end, approximately 24°/0 of the portfolio was invested beyond one year, 25% was invested for one year or less, while the remaining 51 °~ was invested in the ovemight market. Risk management -The City is exposed to various risks of lass related to torts; theft af, damage to, and destruction of assets; errors and omissions; and natural disasters. While the City has historically retained a portion of these risks, coverage exists for: general, employment practice, law enforcement, and errors and omissions liability; excess workers' compensation; property damage; commercial crime coverage; and employee life insurance. The Self-Insurance Fund is responsible far workers' compensation, health, automobile liability, and general liabilityinsurance. The Citymaintains a stop lossthird party insurance palicywith respectto health claims. This policy covers City medical claims in excess of $175,000 per individual per year, andlor $4,666,518 in the aggregate fora 12-month period beginning on January 1, 2007. Self-Insurance Fund claims are funded by charges to otherfunds and employee, retiree, and dependent premiums. Additional information on the City's risk management activity can be found in the notes to the basic financial statements. Pension and otherpost-employment benef~s-The City participates in the Texas Municipal Retirement System ("TMRS"}, an agency authorized by the State of Texas. Employees of the City contribute a fixed percentage of their grass pay (currently 7°r6}. TMRS participants are immediately vested in those funds they contribute plus allocated interest. Participants are vested in employer contributions after five years of credited participation. If participants withdrawfrom TMRS prior to five years of credited participation, they maywithdrawfrom TMRS those funds they contributed plus interest earnings. The City also provides postretirement health and dental care benefits for certain retirees and their dependents. As of the currentfiscal year, there were 93 retired employees receiving these benefits. Currently, GAAP do not require governments to report a liability in the financial statements in connection with an employer's obligation to provide these benefits. However, with the implementation of GASB Statement No. 45 "accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions" in fiscal year 2009, the City will begin reporting this information as required. Additional information on the City's pension arrangements and past employment benefits can be found in the notes to the basic financial statements. Awards-The Government Finance Officers Association ofthe United States and Canada ("GFOA"} awarded a Certificate ofAchievement for Excellence in Financial Reporting to the City for its Comprehensive Annual Financial Report far the fiscal year ended September 30, 200fi. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards forpreparation of state and local gavernmentfinancial reports. In order to be awarded the Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report whose contents conform to program standards. Such comprehensive annual financial reports must satisfy both GAAP and applicable legal requirements. The Certificate of Achievement is valid for a period of one year only. The City has received a Certificate of Achievement for the last twenty-four consecutive years. Staff believes the current Comprehensive Annual Financial Report continues to conform to the Certificate of Achievement Program requirements and it will be submitted to the GFOA for review. The City also received an award in 2007 for the 200fi-2007 operating budget. The Distinguished Budget Presentation award was granted to the City for the seventeenth consecutive year by the GFOA. Acknowledgments -Timely preparation of this Comprehensive Annual Financial Report was made possible by the dedicated service of the Finance Department staff and our independent auditors. We would like to express sincere appreciation to those who contributed to the process. In closing, the continued leadership and support of the Mayor, City Council, and City Manager in planning and conducting the financial operation of the City is sincerely appreciated. Respectfully submitted, Larry Koonce Director of Finance F~ r. Laury Fiorella Assistant Director of Finance N ~r~H This page intentionally left blank. ~e~tlfic~.te o Ac~ai~vemen~ for ~~cce'~ en~e in Flnancla_ I~.e~~or~in,~ ~'r~~~~~t~~ t City of Dort=~ Ric~~.anc. Hies __. ~.~.~ ~~r its C;~~~apre~~~~~e .r'~nr~c~~~1 Fi~~~~~~~~:~~~~rt ~~~~~`~~r 3~, ~~~ .~ ~'~~.~~~:~~~ vf'~~lucvcrx~~~~t fir ~;~celiei~c~ iii t~~~ai:vial ~.~pr~rti.r~~ is pr~~ni~~1 Y ~~ Cr~~~ra~n~~t ~it~ar~~~ ~t~e~rs ~~~~c~~ia~in~ r,f tl~~ ~l~~it~~ St~t~~ and ~'a~j~~a try r ~~~~-~~:~~~~~~ ~3~~itx ~~xt~ ~~~~a1i~ ~~~~~l~ycc c~~ti~°z~~~~t ~}~~t~~~ s~ho~c ~~~n~r~l~~r~~l~r~ annual ~ttn~n~ial r~~r~rt~ ~f";t~~'R:~} ~chi~~~ tl~~ iii~~~t st~~r~~~~~cls ix~ ,~~~~r~~r~~~s~t ~~c~~~r~t~i~~ ~~~~~ t~~z~ ~~ ~ °;+' :~~~~~~~i~~ I~ir~~,~~ City of North Richland Hills CITIZENS Mayor & City Council 'Municipal __ *Boards ~. Caurt Judge Cammisions Secr tart' City Manager Attorney Community Services Development Services ~ ~ Admi ni strati velFi scat Services ~ J Police Department Recreation Utilities Services - Services -- Streets -- Animal Services -- Engineering Consumer Health Code Enforcement ~ Emer enc g y NRH20 Plannin & g ment Develo Support Services - Finance - p Building Services Accounting Management Development Review __ Equipment -- Purchasing Coordinator Services Utility Services Library Economic - Development - Budget - __-_-_~ ~ Utility Franchises Internal Audit J Tax _ Golf Course i _______ L__ I I r"' Solid 1Naste Organizational Contract ~ _ Analysis KEY =Appointed by Council ~Cantracted Functianal I Services Services -------- 10 CITY OF NORTH RICHLAND HILLS, TEXAS List of Principal Officials September 30, 2007 MAYOR T. OSCAR TREVINO J R. COUNCIL MEMBER, PLACE 1 JOHN LEWIS COUNCIL MEMBER, PLACE 2 KEN SAPP MAYOR PROTEM, COUNCIL MEMBER, PLACE 3 SUZY COMPTON COUNCIL MEMBER, PLACE 4 DR. TIM EARTH COUNCIL MEMBER, PLACE fi DAVID WHITSON COUNCIL MEMBER, PLACE fi SCOTT TURNAGE COUNCIL MEMBER, PLACE 7 TIM WELCH City Manager Lang J. Cunningham Assistant City Manager Ogden "Bo" Bass III Assistant City Manager Jared Miller Managing Director Karen Bostic City Secretary Patricia Hutson City Attorney George Staples Human Resources Director Patrick Hillis Director of Finance Larry Koonce Assistant Director of Finance Laury Fiorello Budget Director Mark Mills Director of Economic Development Thad Chambers Director of Planning and Development John Pitstick Public Information Officer Mary Peters Director of Information Services Kyle Spooner Municipal Court Administrator Debbie Durko Director of Neighborhood Services JoAnn Stout Director of Public Works Mike Curtis Library Director Steve Brown Director of Parks and Recreation Vickie Laftice Support Services Director Thomas Powell Police Chief Jimmy Perdue Fire Chief Andy Jones 11 N ~H This page in~en~ionally 1efl~ blank. 12 Financial Section lei ~H 13 This page intentionally 1ef~ blank. 14 Patillo, Brown & Hill Independent Auditors' Report CITY OF NORTH RICHLAND HILLS, TEXAS MANAGEMENT'S DISCUSSIGN AND ANALYSIS SEPTEMBER 30, 2007 The City of North Richland Hills, Texas (the "City"} Management's Discussion and Analysis ("MD&A"} is designed to (a} assist the reader in focusing on significant financial issues, (b} provide an overview of the City's financial activity, (c} identify changes in the City's financial position (its ability to address the next and subsequent years' challenges}, (d} identify any material deviations from the financial plan (the approved budget}, and (e} identify individual fund issues ar concerns. MD&A is designed to focus on the current year's activities, resulting changes, and currently known facts, and should be read in conjunction with the Letter of Transmittal (beginning an page VII} and the City's financial statements (beginning on page 32). Also, unless otherwise indicated, all discussion and amounts presented herein are based upon the activity of the primary government only. Financial Highlights • The assets of the City exceeded its liabilities at the close of the fiscal year ending September 30, 2007, by over $269 million (net assets}. Of this amount, almost $69 million (unrestricted net assets} may be used to meet the government's ongoing obligations to citizens and creditors. • The City's total net assets increased by $8,951,130 in fiscal year 2007. Additional details of this increase may be found beginning on page 34. • As of September 30, 2007, the City's governmental funds reported combined fund balances of $45,258,245 which represents an increase of $3,773,062 in comparison to the prior fiscal year's ending balance. This increase is primarily attributable to the issuance of debt for financing of capital project expenditures. • Approximately 23°~ of total governmental fund balance, or $11,441,259, is available for appropriation at the government's discretion (unreserved, undesignated fund balance). • The City's objective regarding General fund balance is to maintain a sufFcient fund balance to operate the City for a period of 60 days or 15% of the following year's budgeted expenditures. This objective was met at year end. • At the end of the current fiscal year, unreserved, undesignated fund balance for the General Fund was $8,307,638, or 26°r6 of General Fund actual expenditures for 2007. • The City's total debt (including component units) decreased by approximately $4.3 million during the current fiscal year. New general obligation bands and a refunding of general obligation bonds in the amounts of $1,600,000 and $5,085,000, respectively, were issued in fiscal year 2007. 17 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis Overview of the Financial Statements MD&A is intended to introduce the reader to the Cites basic financial statements. The City's basic financial statements are comprised of three components: 1 } government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. The report also contains other required supplementary information in addition to the basic financial statements. Government-wide financial statements -The government-wide financial statements are designed to provide readers with a broad overview of the City's finances in a manner similar to private- sectarbusiness. The Statement of Net Assets presents information an all of the Cites assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving ar deteriorating. The Statement of Activities presents information showing haw the City's net assets changed during the fiscal year. All of the current year's revenues and expenses are taken into account regardless of when cash is received ar paid. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, unused vacation leave}. Both the Statement of Net Assets and the Statement of Activities are prepared using the accrual basis of accounting as opposed to the modified accrual basis used in prior reporting models and in gavemmental funds. In the Statement of Net Assets and the Statement of Activities, the City's operations are separated into two types of activities: • Governmental activities -Mast of the City's basic services are reported here, including the activities of police, fire, municipal court, neighborhood services, library, parks and recreation, tennis center operations, planning and inspections, public works, and general administration. Property taxes, sales taxes, and franchise fees finance most of these activities. • Business-type activities -For this type of activity, the City charges a fee to customers to cover all or most of the cast of services provided including the recovery of costs of capital assets used in the delivery of such services. The City's water and sewer, golf course, and aquatic park activities are reported here. The government-wide financial statements can be found an pages 32 - 35 of the comprehensive annual financial report. Fund financial statements - A fund is a grouping of related accounts that is used to maintain control aver resources that have been segregated far specific activities or objectives. Fund financial statements provide detailed information about the mast significant funds, not the City as a whole. Some funds are required to be established by state law ar bond covenants. However, management establishes many other funds to help control and manage resources for particular purposes or to show that legal responsibilities far using certain taxes, grants, and other money are being met. All of the funds of the City can be divided into two categories: gavemmental funds and proprietary funds. 18 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis Governmenta/ funds -The majority of the City's basic services are reported in governmental funds, which focus an haw money flaws into and out of those funds and the balances available far appropriation at year-end. These funds are reported using an accounting method identified as the modified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted to cash. Statements of governmental funds provide a detailed chart-term view of the Cites general government operations and the basic services it provides. Governmental fund information helps the reader determine whether there are mare ar fewer financial resources available for appropriation in the near future to finance City programs. By comparing information presented for govemmental funds with similar information presented for govemmental activities in the government-wide financial statements, readers may better understand the long-term impact of the gavemment's near-term financing decisions. The relationship ar differences between govemmental activities (reported in the Statement of Net Assets and the Statement of Activities} and governmental funds are detailed in a reconciliation fallowing the fund financial statements. The City maintains six major individual govemmental funds. Information is presented separately in the Governmental Funds Balance Sheet and in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances for these funds (pages 36 - 43}. The General Fund, Parks and Recreation Facilities Development Fund, Crime Control and Prevention District Fund, General Debt Service Fund, General Capital Projects Fund, and the Streets 1994 Election Fund, are the major governmental funds of the Gity. Data from the other fifteen govemmental funds are combined into a single, aggregated presentation in the governmental statements. Individual fund data far each of these non- major governmental funds is provided in the form of combining statements elsewhere in this report (pages 92 - 95}. Proprietary funds -The objective of proprietary funds is to charge customers, both internal and external, for services provided an amount sufficient to cover virtually all casts associated with providing the services including recovery of amounts required to replace assets used in the delivery of such services. These services are generally reported in proprietary funds. Proprietary funds are reported in the same manner that all activities are reported in the Statement of Net Assets and the Statement of Activities. In fact, the City's enterprise funds (a component of proprietary funds} are almost identical to the business-type activities that are reported in the government-wide statements, but provide more detail and additional information, such as the statement of cash flaws. The internal service funds (the other component of proprietary funds} are utilized to report activities that provide supplies and services for the City's other programs and activities, such as the Cites building maintenance services, fleet management, employee and property insurance coverage, and telephone and computer services. Because these services benefit bath governmental and business-type functions, they have been included in both the govemmental and business-type activities in the government-wide financial statements. The City maintains three enterprise funds. The City uses enterprise funds to account for its provision of water and wastewater services, golf course operations, and water park activities. The City considers all enterprise funds to be major funds. Financial statements far the enterprise funds can be found on pages 44 - 51 of the report. 19 CITY OF NORTH RICHLAND HILLS, TEAS Management's Discussion and Analysis Notes to the financial statements -The Hates to the financial statements provide additional information that is essential far a full understanding of the data provided in the government-wide and fund financial statements. The Hates to the financial statements can be found on pages 53 84 of this report. Government-Wide Financial Analysis The government-wide financial analysis highlights the information contained in the Statement of Net Assets and Statement of Activities. The Gity's combined net assets were $269,650,130 as of September 30, 2007. Analyzing the net assets of govemmental and business-type activities separately, govemmental activities net assets equal $176,348,231 and business-type activities net assets total $93,201,899. This analysis focuses an the net assets and changes in general revenues and significant expenses of the Gity's governmental and business-type activities. Statement of Net assets -The largest portion of the City's net assets (73°~) reflects its investment in capital assets (e.g., land, buildings, machinery and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses capital assets to provide services to citizens; consequently, capital assets are Hat available far future spending. Although the City's investment in capital assets is reported net of related debt, it should be Hated the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these obligations. The following table presents the condensed government-wide statement of net assets as of September 30, 2007 and 2006. Current assets include restricted deposit and investment balances. Other assets represent bond issuance casts. Condensed Statement of Net Assets Amounts shown in thousands (000's} Governmental Activities Business-Type Activities 2007 2006 2007 2006 2007 2006 Totals Totals Current assets $ 56,330 $ 49,524 33,165 32,981 89,495 82,505 Other assets 384 310 109 102 493 412 Capital assets, net of depreciation 177,743 179,465 72,225 72,643 249,968 252,108 Total assets 234,457 229,299 105,499 105,726 339,956 335,025 Long-term liabilities 11,765 49,931 4,828 7,824 16,593 57,755 Other liabilities 46,343 11,715 7,469 4,956 53,812 16,671 Total liabilities 58,108 61,646 12,297 12,?80 ?0,405 74,426 Net assets: Invested in capital assets, net of related debt 127,276 127,692 63,950 62,776 191,226 190,468 Restricted 3,270 2,974 2,891 2,713 6,161 5,687 Unrestricted 45,802 36,987 26,360 27,457 72,162 64,444 Total net assets $ 176,348 $ 167,653 93,201 92,946 269,549 260,599 S~a~ement of Activities -Governmental activities increased the City of North Richland Hills' net assets by $8,694,802 in fiscal year 2007, while business-type activities increased net assets by 20 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis $25fi,32fi. The following table presents the condensed government-wide statement of activities for the years ended September 30, 2007 and 200fi. Changes in Net Assets Amounts shown in thousands (000's) Governmental Activities Business-Type Activities 2007 2006 2007 2006 2007 2006 Total Total Revenues: Program revenues: Charges for services $ 10,528 $ 9,583 27,845 31,529 38,373 41,112 Operating grants and contributions 1,029 1,154 - 66 1,029 1,220 Capital grants and contributions 410 2,911 600 1,289 1,010 4,200 General revcnues: Property tax 18,663 18,134 - - 18,663 18,134 Sales tax 16,865 15,934 - - 16,865 15,934 Mixed beverage 130 123 - - 130 123 Franchise taxes 4,450 3,855 - - 4,450 3,855 Occupancy taxes 284 200 - - 284 200 Unrestricted investment earnings 2,757 2,048 1,331 946 4,088 2,994 Miscellaneous 2,281 2,341 28 - 2,309 2,341 Total revenue 57,397 56,283 29,804 33,830 87,201 90,113 Expenses: General government 8,461 9,270 - - 8,461 9,270 Public safety 23,265 22,023 - - 23,265 22,023 Culture and recreation 7,328 7,612 - - 7,328 7,612 Public works 7,800 8,169 - - 7,800 8,169 Interest and other fees 2,562 2,547 - - 2,562 2,547 Waster and sewer - - 23,154 22,930 23,154 22,930 Golf course - - 2,247 2,239 2,247 2,239 Aquatic park - - 3,434 3,343 3,434 3,43 Total expenses 49,416 49,621 28,835 28,512 78,251 78,133 Increase in net assets before special items and transfers 7,982 6,662 969 5,318 8,951 11,980 Transfers bctween governmental and business-type activities 713 874 713 (874) - - Increase in net assets 8,695 7,536 256 4,444 8,951 1180 Net assets at the beginning of the year 167,653 100,780 92,945 88,502 260,598 189,282 Prior periadadj. - 59,337 - - - 59,337 Restated net assets - beginningbalance 167,653 160,117 92,945 88,502 260,598 248,619 Net assets at the end of the year $ 176,348 $ 167,653 93,201 92,946 269,549 260,599 Govemmenta! acfrv~ies - Governmental activities increased the City of North Richland Hills' net assets by $8,fi94,804 in fiscal year 2007. An increase in tax sources provided a 27°~ increase to the City's overall net asset increase. Tax revenues saw an increase of $2.3 million in 2007. The 21 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis City realized proceeds of $1.5 million (or approximately 17°~} of the net asset increase for governmental activities in a receipt of funds far insurance recovery activity. These proceeds will be appropriated in 2008 to repair property fi-om the 2007 weather events. Charges for services realized a modest growth of only 10°r6 ar approximately $945,000 increase over 2006 revenues. Expense for govemmental activity remained level with 2006 totals. Expenses decreased fi-om 2006 by $205,000. The leveling of expenses has afForded the gains in revenue to increase net assets for the governmental activities. Operating grants and contributions decreased by over $2.6 million from fiscal year 2006 to 2007. Developer participation contributions declined by $1.9 million in 2007 compared to 2006. The slow down of the economic conditions of the new housing market correlates to this decline. Also, the City has reached over 88% build-out for new development. The contributions from developers are nearing maximum capacity. Both sales and occupancy taxes realized increases ($931,000 and $84,000, respectively) from fiscal year 2006 to 2007. The growth in occupancy taxes represents a 42% increase aver the 2006 revenues. Sales taxes are entirely dependent upon the local economy. As such, the 6°~O increase experienced in this revenue stream reflects a gradual return of consumer confidence and an upswing in local spending. However, the City is expecting a flat change in sales tax revenues far 2008. The final quarter of 2007 saw a decrease in the federal funds rates with an effort to prevent an economic recession. Consumer confidence could result in a decrease in spending thus resulting in a decrease in the sales tax revenues. The Federal Reserve Board ("Fed") maintained the 2006 federal funds rate (5.25°r6 for the majority of 2007 thus affording the City to increase investment income over prior year by $1.09 million. The upward trend in the investment income revenue source is expected to tum around in 2008. During the first quarter of the City's fiscal year the "Fed" lowered rates twice resulting in a decrease of rates by 50 basis paints. The City expects further decreases in rates from the "Fed" to help mitigate progression toward an economic recession. The most significant governmental expense occurred in the public safety program ("PS"), which incurred expenses of $23,154,259. This figure represents an increase from the prior fiscal year expenses of over $1.1 million. Approximately 82% of the PS costs is related to police and fire protection personnel salaries and related benefits. These costs are estimated at $19,169,150 which represents an increase of $1.1 million from the prior fiscal year. Continued implementation of the compensation and classification study recommendations, changes to insurance premiums, and an increase in the retirement contribution rate are primarily responsible for the increase in personnel-related costs. The remainder of the increase is attributable to the numerous entries, such as compensated absences, depreciation, and the internal service fund allocation, required to prepare the govemment-wide financial statements. Other significant governmental expenses far 2007 include general government ("GG"}, which incur-ed $8,461,142 in expenses, of which an estimated $4.4 million (excluding internal service employees) represents personnel and related charges. Personnel and related benefit expense far general government rose by almost $276,464. Again, continued implementation of the compensation and classification study recommendations, changes to insurance premiums, and an increase in the retirement contribution rate are primarily responsible for the increase in personnel-related costs. General govemment expenses decreased by $808,719 (respectively, 9°~}. The Internal Service Fund increased governmental activities assets by $3.2 million (or approximately 37°~6) of the overall $8.2 net asset increase. Of this increase, 50% ($1.6 million} is attributable to the ongoing plan to reestablish the Self Insurance Fund. Equipment Services and Building Services Funds had a net increase of $1.1 million. This increase is from a reimbursement far property damage from the 2007 bad weather events. These proceeds are appropriated in the 2008 budget to repair various property and equipment. 22 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis Culture and recreation program expenses decreased by approximately 4°r6 from fiscal year 2006 to 2007. The public works activities of the City incurred $7,799,706 in expenses, of which over one-half is attributable to program-applicable depreciation expense. Governmental activities interest expense and other fees increased by 1 °~, or approximately $15,046, from fiscal year 2006 to fiscal year 2007. Business-type activ~ies -Business-type activities had a minor contribution to the City's total net assets. 2007 increase was $256,326, or approximately 1 °~, of the overall $8.9 million increase. Several factors can explain this pattern. • Water and Sewer Fund realized a $5.2 million decrease in utility charges. 2007 had a `fret" summer season which correlates to the decreased revenue. • Water and Sewer Fund maintained the 2006 expense level of 2006 for 2007. Realizing only a $123,729 increase in operating expense levels. • Investment income increased by 41 %, or respectively $384,903. This increase correlates to governmental activities reasons due to higher interest rates for the majority of the year. • Aquatic Park had leveled revenues compared from 2006 to 2007. The Park realized only an $83,000 increase in admission sales. This even level was anticipated due to a mild and wet summer. • Golf Course realized a gain in 2007 of $192,182. This increase is due to a transfer in from the Gas Development Fund from the mineral right lease proceeds of the City far club house renovations. Fund Level Financial Analysis The General Fund added $893,971 to fund balance far the year ended September 30, 2007 bringing the total fund balance to $14,315,364. Ofi this, almost $833,307 is reserved far encumbrances and inventories. Another $5.1 million is designated for economic development, savings incentive, special projects, and restoration of insurance reserves. The unreserved, undesignated balance is $8,307,638 which represents a little aver 22°r6 of the current fiscal year's expenditures. The General Fund property tax revenues realized an increase from the prior year of $529,251 due to an increase in taxable values and an increase in the operations and maintenance allocation. There was no change in the total property tax rate of $.57 which has been in effect since fiscal year 1994. Sales taxes increased by 6% due to new business openings and an improvement in the local economy. Franchise fees realized an increase of over $595,000 primarily as a result of increased rates for gas and utility fees and an electric settlement of $194,000. Ambulance fees grew due to a higher volume of transports and an increase in the average transport charges. Municipal court fines and fees decreased by approximately 4°r6 from 2006 to 2007. Investment earnings increased by close to $225,732 from 2006 to 2007. The Parks and Recreation Facilities Development Fund made $801,150 in budgeted capital expenditures far Parks in fiscal year 2007. This fund ended the year with a $4.5 million balance, an increase of $400,000. The Crime Control District Fund ended fiscal year 2007 with a $1.6 million transition fund balance compared to the $1.3 million revised budget estimate. The two major capital projects funds, General Capital Projects ("GCP") and Streets 1994 Election, ended the year with an increase of fund balance of $1,109,355 and a decrease in fund balance of 23 CITY OF NORTH RICHLAND HILLS, TEAS llrlanagement's Discussion and Analysis ($595,898}, respectively. The issuance of new debt ($585,000} is primarily responsible far the growth of fund balance in GCP. Transfers in fi-am various funds to facilitate capital projects totaled $830,387. Project expenditures funded from existing cash balances, rather than from new debt issuance, and transfers out are responsible far the decrease in fund balance far Street 1994 Election. Two of the three Enterprise Funds realized increases to their net assets far the year ending September 30, 2007. Aquatic Park had an increase of $663,232. The fund had consistent admissions revenues and maintained their expenses at 2006 levels. The Golf Course Fund had a transfer in from the Gas Development Fund far $120,200 in 2007. This transfer was the main reason far Golfs $192,182 addition to net assets. Water and Sewer Fund realized a net lass of $1.04 million. This lass is attributable to a `~nret" spring and summer season. The North Richland Hills area had severe flooding that made the City eligible far Federal Emergency Management Assistance. Utility function is highly sensitive to weather conditions and this fund's negative activity is in correlation to 2007 severe weather conditions and `~r+ret" season decreased water rate sales. General Fund Budgetary Highlights The City revised its General Fund budget during the course of the year. The revisions resulted in a final expenditure budget approximately $777,395 more than adopted. Following is a summary of notable adjustments to the 2006-2007 adopted budget (figures are approximated): • City attorney litigation services was revised down almost $210,000 • $403,264 increase for previous year encumbrances for goods and services ordered in 2005- 2006, but received in 2006-2007 • $448,721 increase for one-time, non-recurring costs originally requested by departments for 2007-2008, but funded in 2006-2007 The ending General Fund balance of $14,315,364 continues to meet the City's policy of maintaining a balance of at least 15°~ of expenditures. The policy was established to protect the City from unforeseen emergencies and to place the City in a mare favorable financial position overall . General Fund Revised Budget to Actual Comparison Notable variances occurred in the General Fund revised budget to actual comparison as follows: • Penalty and interest on delinquent taxes exceeded the revised budget by 18°~ resulting from the ongoing commitment to collections. • Franchise fees reflected a favorable variance of $152,980 which is primarily due to increases in gas and water and sewer payments. Rates for both of these utilities increased in fiscal year 2006. • General Fund had positive net expenditure budget variances totaling approximately $1.6 million. The General Fund activities with positive variances include: General Government ($737,431); Public Safety ($282,125), Culture and Recreation ($271,599}, and Public Works ($268,039}. General Fund savings is partly caused by encumbrances of current year activities which will be carried to 2008-2009 budget and expensed in the new budget period. 24 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis The total of prior year encumbrances to be expensed in 2008-2009 totals $894,226 (or approximately 43°Io of net amount under budget}. • Public Safety had expenditures $282,125 under revised budget. This function savings is due to encumbrances that are reserved in 200fi-2007 and expensed in the 2007-2008 budget period. • Culture and recreation revised budget exceeded actual expenditures by $271,599. This variance is related to savings in salaries ($77,405}, mowing services (12,734}, electricity ($fi1,121), and encumbrances of $35,517 that will be expensed in the 2008 year. • Public Works expenditures were under the revised budget by $2fi8,039. Savings are tied to electricity charges under budget by $132,203, $48,378 in salary savings, and $fi8,141 far encumbrances to be expensed in 2008. • Income from investments showed a favorable variance of approximately $206,912 primarily as a result of higher than anticipated market rates. Capital Asset and Debt Administration Cap~al assets - At the end of fiscal year 2007, the City had $249,9fi8,483 (net of depreciation) invested in a broad range of capital assets including, but not limited to, police and fire equipment, buildings, park facilities, roads, bridges, aquatic park facilities, golf course assets, and the water and sewer system. The following table provides capital asset balances net of depreciation far each major category for both governmental and business-type activities for the fiscal years ending September 30, 2007 and 200fi. Capital Assets Net of Depreciation Amounts shown in thousands (000's} Governmental Activities Business-Type Activities 2007 2006 2007 2006 2007 2006 Total Total Land ~ land imp. $ 67,760 $ 67,658 2,527 2,527 70,287 70,185 Wanks of art 72 72 - - 72 72 Buildings &. imp. 12,034 12,703 2,198 1,275 14,232 13,978 Other imp. 75,160 77,878 12,798 13,025 87,958 90,903 Utility plant - - 50,881 52,569 50,881 52,569 Machinery &. equip. 5,150 5,028 624 667 5,774 5,695 Const in progress 17,566 16,126 3,198 2,580 20,764 18,706 Total capital assets $ 177,742 $ 179,465 72,226 72,643 249,968 252,108 25 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis This year's additions include: Description Amount 2-ea. Chevy Dump Trucks $ 57,680 Small Water Main Replacement 275,000 Electric Meter Replacement 204,432 Pump Station Modifications 60,576 Golf Course Reconstruction 99,102 NRH~O Group Pavilions 699,555 NRH~O Catering Building 300,840 NRH2O Facility Improvements 45,957 2 ea. Plymovent Systems -Fire Dept. 77,479 3-ea. Chevy Tahoe -Police Dept. 104,127 3-ea. Chevy Impala -Police Dept. 73,062 LED Retrofit Incandescent Traffic Lamps 147,043 Davis Blvd. Signalization ST0502 98,054 Traffic Signal Light Comm. System 374,350 Frazer Ambulance 187,554 Tymco Street Sweeper 145,407 Chevy Tandem Dump Truck 67,378 ADIC Scalar with 2 LT02 SCSI Drives 43,048 Optiplex 745 Pentiums (50 ea.) 62,020 Dr. Pillow Park (land) 333,927 Norich Park (NPI Phase II) 466,890 ACE Neighborhood Park 339,025 Lot 1, Block 34 Richland Terrace 102,376 Debt - At September 30, 2007 and 200fi, the City had the following debt outstanding: Outstanding Debt Amounts shown in thousands (000's) Governmental Activities Business-Type Activities 2007 2006 2007 2006 2007 2006 Totals Totals General obligation bonds $ 37,821 $ 38,024 3,537 4,255 41,358 42„279 Certificates of obligation 7,842 11,048 4,866 4,589 12,708 15,637 Sales tax revernue bonds 5,410 6,270 - - 5,410 6,270 Capital lease - - - - - - Totals $ 51,073 $ 55,342 8,403 8,844 59,476 64,186 In fiscal year 2007, the City issued refunding and new debt. The presently outstanding general obligation debt of the City is rated "Aa3" by Moods and "AA-" by S&P. The City also has issues outstanding which are rated "Aaa" by Moody's and "AAA" by S&P through credit enhancement in the form of municipal bond insurance policies. 26 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis As a home rule city, the City is not limited by law in the amount of debt it may issue. The City's Charter provides that general property taxes are limited to $1.50 per $100 of assessed valuation far general gavemmental services including the payment of principal and interest an general obligation debt. The City has maintained a property tax rate of $0.57 per $100 assessed valuation far twelve consecutive years. The current ratio of tax-supported debt to assessed value of all taxable property is 1.34°~. Additional detailed information an long-term debt activity is disclosed in the Hates (IV-E} to the financial statements. Rrsk -The City is exposed to various risks of lass related to tarts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. While the City has historically retained a portion of these risks, coverage exists far: general, employment practice, law enforcement, and errors and omissions liability; excess workers' compensation; property damage; commercial crime coverage; and employee life insurance. The Self-Insurance Fund is responsible for workers' compensation, health, automobile liability, and general liability insurance. The City maintains a stop loss third party insurance policy with respect to health claims. This policy covers city medical claims in excess of $175,000 per individual, and/or $4,666,518 in the aggregate fora 12-month period beginning an January 1, 2007. Self-Insurance fund claims are funded by charges to other funds and premiums from employees and retirees far self and dependent coverage. Economic Factors and Next Year's Budgets and Rates The two largest revenue sources for the General Fund are property tax revenues and sales tax receipts. Because of the volatile nature of the sales tax revenue source and the recent departure of major retailers, the City has been conservative in sales tax projections for fiscal year 2007- 2008. For budget year 2007-2008, sales tax receipts are anticipated to increase slightly compared to budget. When compared to the prior year actual receipts, sales taxes are also anticipated to increase slightly. The fiscal year 2007-2008 budget incorporates na increase in the property tax rate. Far fiscal year 2007-2008 the tax rate distribution far the City is as follows: Tax Rate Distribution Schedule: C~neral Fund -Maintenance & Cfperations °.~o of Total Tax Rate Tax Rate Distribution 60.50% $ 0.342406 Debt Service Fund 39.50% 0.227594 Total distribution of tax rate 100.00°I° $ 0.570000 By policy, the City maintains an unreserved General fund balance of 15°~ of budgeted expenditures. The use of available fund balance far one-time expenditures eliminates the financial impact of such purchases on future budgets. The fiscal year 2007-2008 Water and Sewer Fund operating budget includes base and volume rate changes for water service. In addition, sewer base and pass-through rates will increase in April 2008. No pass-through rate increases for water service were implemented in fiscal year 2007-2008. 27 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis Requests for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests far additional financial information should be addressed to the City of North Richland Hills, Director of Finance, P.O. Bax 820609, North Richland Hills, Texas 76182-0609. 28 BASIC FINANCIAL STATEMENTS 29 This page intentionally left blank. 30 N ~H phis page intentionally left blank. CITY ~F NDRTH RICHLAND HILLS, TEXAS Statement of Net Assets September 3 0, 2007 Primary Government Governmental Business-Type Component Activities Activities Total Units Assets Current assets: Deposits and investments $ 30,722,366 7,005,793 37,728,159 6,062,852 Receivables, net of allowances: Accounts 625,001 3,684,122 4,309,123 - Propertytaxes 577,935 - 577,935 53,275 Other taxes 3,161,179 - 3,161,179 - Interest receivable 513,364 176,749 690,113 - Special assessments 230,015 230,015 - Intergovernmental 1,572,407 82,947 1,655,354 - Court fines and fees 427,345 - 427,345 - Other 141,542 141,542 - Prepaids 30,288 17,097 47,385 - Inventories, at cost 255,875 437,220 693,095 - Internal balances X4,958,042) 4,958,042 - - Restricted deposits and investments 23,031,037 16,803,398 39,834,435 5,467,918 Total current assets 56,330,312 33,165,368 89,495,680 11,584,045 Noncurrent assets: Capital assets -net: Land and nondepreciable land improvements 67,760,222 2,526,638 70,286,860 - Buildings and improvements 12,034,105 2,197,992 14,232,097 - Impravements otherthan buildings 75,160,331 12,798,091 87,958,422 - Utility plant - 50,880,558 50,880,558 - Equipment 5,150,433 623,898 5,774,331 - Artwork and historical treasures 72,491 - 72,491 - Construction in progress 17,565,844 3,197,880 20,763,724 6,370,185 Total capital assets -net 177,743,426 72,225,057 249,968,483 6,370,185 Other assets 383,112 109,075 492,187 78,239 Total noncurrent assets 178,126,538 72,334,132 250,460,670 6,448,424 Total assets $ 234,456,850 105,499,500 339,956,350 18,032,469 The notes to the financial statements are an integral part afthis stat ement. (continued) 32 CITY i]F NQRTH RICHLAND HILLS, TEXAS Statement of Jet Assets September 30, 2007 Primary Gavemment Governmental Business-Type Component Activities Activities Total Units Liabilities Payable from current assets: Accounts payable and accrued liabilities $ 4,601,027 1,755,980 6,357,007 1,047,015 Deposits and other liabilities 23,059 4,048 27,107 - Compensated absences 537,210 191,873 729,083 - Uneamed revenue 79,622 30,504 110,126 - Total payable from unrestricted assets 5,240,918 1,982,405 7,223,323 1,047,015 Payable from restricted assets: Accrued interest payable 341,154 54,973 396,127 52,815 Current portion of bonded indebtedness 6,153,939 1,208,476 7,362,415 537,640 Contracts and retainage payable 28,994 - 28,994 - Customers' deposits - 1,573,699 1,573,699 - Developers' deposits - 9,024 9,024 - Total payable from restricted assets 6,524,087 2,846,172 9,370,259 590,455 Total current liabilities 11,765,005 4,828,577 16,593,582 1,637,470 Lang-term liabilities: General obligation bonds payable 33,036,206 2,661,532 35,697,738 296,787 Certificates afabligation 6,756,738 4,405,115 11,161,853 9,220,811 Sales tax revenue bands 4,520,000 - 4,520,000 - Compensated absences 1,864,804 402,377 2,267,181 - Accrued arbitrage liability 165,867 - 165,867 - Total long-temp liabilities 46,343,615 7,469,024 53,812,639 9,517,598 Total liabilities 58,108,620 12,297,601 70,406,221 11,155,068 Net assets Invested in capital assets, net of related debt 128,290,273 65,485,796 193,776,069 6,370,185 Restricted for: Debt service 3,270,409 831 ,053 4,101 ,462 261,980 Grants - - - - Impact fees - 2,105,974 2,105,974 - Unrestricted 44,787,548 24,779,076 69,566,624 245,236 Total net assets $ 176,348,230 93,201,899 269,550,129 6,877,401 The notes to the financial statements are an integral part of this statement. 33 CITY CF NORTH RICHLAND HILLS, TEXAS Statement of Activities Year Ended September 30, 2007 Program Revenues Gperating Capital Primary Government Charges Grants and Grants and Functions/Programs Expenses for Services Contributions Contributions Governmental activities: General government $ 8,461,142 6,505,029 279,097 - Public safety 23,265,259 1,718,460 453,655 150,966 Culture and recreation 7, 327, 532 1,124, 777 296,101 - Public works 7,799, 706 1,179, 302 - 259,331 Interest and other fees 2,561,837 - - - Total govern mental activities 49,415, 476 10, 527, 568 1, 028, 853 410, 297 Business-type activities: Ulfater and sewer 23,154, 259 21, 630, 336 599, 983 Golf course 2,247,272 2,298,065 Aquatic park 3,433,492 3,916,691 Total business-type activities 28,835,023 27,845,092 - 599,983 Total primary government $ 78,250,499 38,372,660 1,028,853 1,010,280 Component units: Tax increment financing districts {TIFF #1 & #2 $ 516, 921 ~ axes: Property taxes Sales taxes Mixed beverage taxes Franchise taxes occupancy taxes Unrestricted investment earnings Miscellaneous Special item: Insurance Recovery Proceeds Transfers between governmental and business-type activities Total general revenue and transfers Change in net assets Net assets beginning of year Net assets -end of year The notes to the financial statements are an integral part of this statement. 34 Net {Expense} Revenue and Ghanaes in Net Assets Primary Government Governmental Business-type Activities Activities Total {1,677,016} {20, 942,178} (5, 906, 654} {6,361,073} (2,561,837} {37,448, 758} {1,677,016} {20,942,178} {5,906,654} {6,361,073} {2,561,837} {37,448,758} { 923, 940} { 92 3, 940} 50, 793 50, 793 483,199 483,199 (389,948) (389,948) (37,448, 758} (389, 948) {37, 838, 706} Component Units - {516,921 } $ 18,663,482 - 18,663,482 1,971,712 16, 865, 282 - 16, 865, 282 - 129,860 - 129,860 - 4, 450,441 - 4,450,441 - 284, 099 - 284, 099 - 2, 757, 208 1, 330, 781 4, 087, 989 704, 394 781, 267 28, 275 809, 542 - 1, 499,140 - 1, 49 9,140 - 712,782 {712,782} - - 46,143, 561 646, 274 46, 789, 835 2, 676,106 8, 694, 803 256, 326 8, 951,129 2,159,185 167, 653,427 92,945, 573 260, 599, 000 4, 718, 216 $ 176,348, 230 93, 201, 899 269, 550,129 6, 877,401 35 CITY OF NORTH RICHLAND HILLS, TEXAS Balance Sheet Governmental Funds September 30, 2007 Assets Deposits and investments Receivables (net of allowance for uncollectibles~: Accounts receivable Property taxes receivable Other taxes receivable Interest receivable Special assessments receivable Intergovernmental receivable Other receivables Due from other funds Prepaid expenditures Inventories, at cast Advances to other funds Restricted assets: Construction funds -deposits and investments Transition funds -deposits and investments Total assets Liabilities and Fund Balance Liabilities: Accounts payable and accrued liabilities Intergovernmental Payables Deposits and other liabilities Contracts and retainage payable Deferred revenue Total liabilities Fund balance: Reserved for encumbrances Reserved for inventories Reserved for debt service Reserved for advances to other funds Reserved for capital improvements Unreserved, designated for transition Unreserved, designated for economic development Unreserved, designated for savings incentive program Unreserved, designated for retirement stabilization Unreserved, designated far utility billing assistance Unreserved, designated for 820 facilities project Unreserved, designated for rail station project Unreserved, designated for insurance restoration plan Unreserved, undesignated for: General fund Special revenue funds Total fund balance Total liabilities and fund balance Parks and Crime Recreation Control and Facilities Prevention General Development District $ 13,271,691 1,430,440 - 409,233 29,977 - 577,935 - - 1,665,563 746,282 683,912 115,837 - - - 1,540,954 - 51,542 - - 29,394 894 - 139,081 13,852 - - 1,478,295 - - - 1,064 ,611 $ 16,260,276 5,240,694 1,748,523 $ 1,189,515 135,314 105,423 408,395 573,269 - - 5,624 - 347,002 - - 1,944,912 714,207 105,423 694,226 122,614 80,157 139,081 13,852 - - 4,390,021 - - - 1,562,943 2,522,920 - - 250,360 - - 250,000 - - 53,739 - - 1,050,000 - - 700,000 - - 347,400 - - 8,307,638 - - 14,315,364 4,526,487 1,643,100 $ 16,260,276 5,240,694 1,748,523 The notes to the financial statements are an integral part of this statement. 36 General Streets General Capital 1994 Debt Service Projects Election 2,395,985 7,728,523 4,437,661 - - 65,481 24,300 251,109 2,873 - 230,015 - - 36,761 - - 36,761 - 0th er Tota I 10,136,881 39,401,181 110,143 614,834 - 577,935 65,422 3,161,179 26,472 420,591 - 230,015 31,453 1,572,407 - 51,542 - 36,761 - 30,288 - 152,933 - 36,761 _ _ _ - 1,478,295 _ _ _ _ 1,064,611 2,420,285 $,283,169 4,506,015 10,370,371 4$,829,333 37,144 49,108 48,965 105,759 1,671,228 _ _ _ _ 981,664 - 9,355 - $,080 23,059 _ _ - 28,994 28,994 - 435,735 65,480 17,926 866,143 37,144 494,198 114,445 160,759 3,571,088 - 1,457,130 2,120 723,865 3,0$0,112 _ _ _ _ 152,933 2,383,141 - - 874,424 3,257,565 - 36,761 - - 36,761 - 6,295,080 4,389,450 5,477,702 20,552,253 _ _ _ - 1,562,943 _ _ _ - 2,522,920 _ _ _ - 250,360 _ _ - - 250,000 _ _ _ - 53,739 _ _ - - 1,050,000 _ _ _ - 700,000 _ _ _ - 347,400 _ _ - - 8,307,638 _ _ - 3,133,621 3,133,621 2,3$3,141 7,78$,971 4,391,570 10,209,612 45,258,245 2,420,285 8,283,169 4,506,015 10,370,371 48,829,333 37 N ~r~H This page intentionally lei blank. 3$ CITY ~F NORTH RICHLAND HILLS, TEXAS Balance Sheet Reconciliation Gavemmental Funds September 30, 2007 Total fund balances~overnmental funds Amounts reported for governmental activities in the statement of net assets (pages 18 and 19) are different because: Capital and other assets used in govemmental activities are not financial resources and, therefore, are not reported as assets in govemmental funds. Certain receivables are not available to pay current-period expenditures and, therefore, are deferred in the funds. Internal service funds are used by the City's management for building and vehicle support services, self insurance, and information services. The assets and liabilities of the internal service funds are included with govemmental activities in the Statement of Net Assets but are not included at the fund level. Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported as liabilities in the funds. Total net assets-governmental activities The notes to the financial statements are an integral part afthis statement. See note II A for additional information an reconciliation calculations. 45,258,245 174,24,971 ~ ,213,86fi 8,504,842 (52,843,493) $ 176,348,23'1 39 CITY QF NQRTH RICHLAND HILLS, TEXAS Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds Year Ended September 30, 2007 Parks and Crime Recreation Control and Facilities Prevention General General Development District Debt Service Revenues: Taxes $ 25,061,447 4,284,040 4,013,162 6,750,417 Licenses and permits 1,526,636 - - - Charges for services 5,203,037 - - - Fines 2,064,187 - - - Contributions - - - - Special assessments - - - - Investment income 800,412 148,881 87,156 146,223 Intergovernmental 175,015 190,692 - 19,785 Drainage fees - - - - Tennis center - 312,697 - - Forfeitures - - - - Miscellaneous 235,372 157,198 - - Total revenues 35,066,106 5,093,508 4,100,318 6,916,425 Expenditures: Current General government 7,926,663 - - - Publicsafety 18,150,397 - 4,504,420 - Culture and recreation 3,965,685 2,426,805 - - Publicworks 2,472,808 - - - Capital outlay General government - - - - Publiesafety - - - - Culture and recreation - 801,150 - - Public works - - - - Debt service Retirement of general long-term debt - - - 5,837,217 Interest and fiscal agent charges - - - 2,003,847 Total expenditures 32,515,553 3,227,955 4,504,420 7,841,064 Excess (deficiency) of revenues over expenditures 2,550,553 1,865,553 ~404,102~ (924,639) C7ther financing sources fuses Issuance of debt - - - - Issuance of refunding bonds - - - 5,085,000 Insurance recovery - - - - Payment to escrow agent - - - (5,075,787) Proceeds from sales of assets - - - - Payment in lieu of taxes 357,847 - - - Transfers in 438,670 - 200,000 1,210,235 Transfers out (2,453,099) (1 ,447,694 (85,000 - Total other financing sources (uses) -net (1,656,582) (1 ,447,694) 1 15,000 1,219,448 I~et change in fund balance 893,971 417,859 (289,102 294,809 Fund balance -beginning of year 13,421,393 4,108,628 1,932,202 2,088,332 Fund balance -end of year $ 14,315,364 4,526,487 1,643,100 2,383,141 The notes to the financial statements are an integral part of this statement 40 General Streets Capital 1994 other Total Projects Election Governmental Governmental - - 284,099 40,393,165 - - - 1,526,636 - - - 5,203,037 - - - 2,064,187 - - 170,326 170,326 28,225 - - 28,225 390,590 273,408 412,207 2,258,877 - $4,316 79$,031 1,267,839 - - 819,370 $19,370 - - - 312,697 - - 74,448 74,448 317,500 - 229,171 939,241 736,315 357,724 2,787,652 55,05$,x4$ 438,853 - 241,777 8,607,293 - - 760,060 23,414,877 - - 291,773 6,684,263 - - 49,943 2,522,751 180,905 - - 180,905 10$,778 - 693,056 801,834 20,620 - - 821,770 194,582 673,019 1,070,268 1,937,869 - - 860,000 6,697,217 - - 278,083 2,281,930 943,738 673,019 4,244,960 53,950,709 (207,423) {315,295 (1,457,308) 1,107,339 585,OOa - 1,600,000 2,185,000 - - - 5,085,000 282,000 - - 282,000 - - - (5,075,787) 8,966 - 898 9,864 - - - 357,847 830,387 - 3,132,856 5,812,148 (389,575 (28(7,603) (1,334,378) (5,990,349 1,316,778 (280,603) 3,399,376 2,665,723 1,109,355 (595,89$ 1,942,068 3,773,062 6,679,616 4,9$7,468 8,267,544 41,485,183 7,788,971 4,391,570 10,209,612 45,258,245 41 N ~H This page intentiona!!y !e~ blank. 42 CITY CF NORTH RICH LAND HILLS, TEXAS Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Net Activities Year Ended September 30, 2007 Net change in fund balances--total govemmental funds $ 3,773,862 Amounts reported for governmental activities in the statement of activities {pages 20 and 21} are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated usefial lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. {2,416,250} Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 9,227 Certain long-term liabilities are accrued at the government-wide level but not at the fund level. The current year change in those liabilities is reported as expense in the statement of activities. Expenses recorded for accrual of interest and amortization expense are included in this category. {589,698} Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long- term liabilities in the statement of net assets. This is the difference between repayments and proceeds received. 4,630,269 Internal service funds are used by management to charge the costs of certain activities, such as insurance and fleet maintenance, to individual funds. The net revenue {expense} of certain internal service fiands is reported with governmental activities. 3,288,194 Change in net assets of govemmental activities The notes to the financial statements are an integral part of this statement. See note II B for additional information on reconciliation calculations. $ 8,694,8D4 43 CITY c]F NDRTH RICHLAND HILLS, TEXAS Statement of het Assets Proprietary Funds September 30, 2007 Assets Current assets: Deposits and investments Accounts receivable: Billed Unbilled other Total accounts receivable Less allowance for uncollectible amounts Net accounts receivable Interest receivable Intergovernmental receivable Prepaid expenses Due from other funds Inventories, at cost Restricted assets: Construction funds -deposits and investments Insurance recovery funds -deposits and investments Debt service reserve funds -deposits and investments Interest and sinking fund reserves -deposits and investments Impact fees -deposits and investments Customer deposits funds -deposits and investments Rate stabilization funds -deposits and investments Future construction funds -deposits and investments Infrastructure funds -deposits and investments Future claims funds -deposits and investments Other funds -deposits and investments Total current assets Noncurrent assets: Capital assets, at cost: Land Buildings and improvements Other improvements Utility plant in service fvlachinery and equipment Total property, plant, and equipment, at cost Less: Accumulated depreciation Net capital assets Construction in progress Net capital assets and construction in progress Other assets, net of accumulated amortization Advances to other funds Total noncurrent assets Total assets Business-Type Activities -Enterprise Funds V'tifater and Golf Aquatic Sewer Course Park $ 6,729,603 217,450 58,740 1,946,337 - - 1,509,671 - - 13,553 174,795 107,505 3,469,561 174,795 107,505 (67,739) - - 3,401,822 174,795 107,505 148,834 - 27,915 82,947 - - 8,212 8,267 618 24,378 - - 358,142 68,426 10,652 5,051,271 6,671 60,541 - - 366,615 464,437 - - 2,105,974 1,573,699 - - 1,200,000 - - 2,527,265 - 569,509 - - 2,197,907 - - 650,000 - 29,509 - 23,676,584 505,118 4,050,002 22,867 1,758,000 745,771 1,136,327 671,300 1,818,815 - 5,216,593 14,075,104 84,715,115 - - 698,523 1,440,420 402,632 86,572,832 9,086,313 17,042,322 (34,730,908) (4,100,430) 44,842,952} 51,841,924 4,985,883 12,199,370 2,039,499 131,462 1,026,919 53,881 ,423 5,117,345 13,226,289 38,512 9,129 61,434 290,911 - - 54,210,846 5,126,474 13,287,723 $ 77,887,430 5,631,592 17,337,725 The notes to the financial statements are an integral part of this statement. 44 Total Internal Enterprise Service 7,005,793 791,602 1,946,337 - 1,509,671 - 295,853 10,168 3,751,861 10,16$ (67,739) - 3,684,122 10,168 176,749 92,773 82,947 - 17,097 - 24,378 - 437,220 102,942 5,118,483 805,298 - 1,217,140 366,615 - 464,437 - 2,105,974 - 1,573,699 - 1,200,000 - 3,096,774 5,696,002 2,197,907 - 650,000 3,389,274 29,509 28,231,704 12,105,199 2,526,638 - 3,626,442 272,293 19,291,697 - 84,715,115 - 2,541 ,575 7,083,833 112,701,467 7,356,126 (43,674,290} (4,841 ,401 ~ 69,027,177 2,514,725 3,197,880 1,013,730 7~ ~~~ n~~ ~ ~~Q n ~~ 109,075 - 290,911 - 72,625,043 3,528,455 100,856,747 15,633,654 (continued) 45 CITY ~F NgRTH RICHLAND HILLS, TEXAS Statement of Net Assets Proprietary Funds September 30, 2007 Liabilities Current liabilities (payable from current assets): Accounts payable Accrued liabilities Other current liabilities Compensated absences Deferred revenue Due to other funds Total payable from current assets Current liabilities (payable from restricted assets): Accrued interest payable Current portion of revenue bonds, general obligation bonds and certificates of obligation Contracts and retainage payable Customer deposits Developer deposits Total payable from restricted assets Total current liabilities Lonq-term liabilities: General obligation bands payable (net of current portion and lass on refunding of $192,$66) General obligation bands (net of current portion and lass on refunding of $23,537) General obligation bonds payable (net of current portion and loss an refunding of $33,500) Certificates of obligation payable (net of current portion) Compensated absences Advances from other funds Total long-term liabilities Total liabilities Net Assets Net assets: Invested in capital assets, net of related debt Restricted for impact fees Restricted for debt service Unrestricted Total net assets Business-Type Activities -Enterprise Funds Water and Golf Aquatic Sewer Course Park $ 1,45$,847 128,548 21,553 123,025 - 24,007 - - 4,048 75,699 106,451 9,723 - 30,504 - - 61,139 - 1,657,571 326,642 59,331 5,638 12,258 37,077 418,408 460,530 329,538 1,573,699 - - 9,024 - - 2,006,769 472,7$8 366,615 3,664,340 799,430 425,946 1$7,161 - - - 1,616,917 - - - 857,454 514,532 160,328 3,730,255 220,034 147,870 34,473 ~~~ ~~~ ~L I, r L l L,L:JL,r or ~F,OLL, I C5L 4,586,067 3,052,217 5,04$,128 52,761,322 2,597,196 9,166,496 2,105,974 - - - - 366,615 18,434,067 - 3,068,948 $ 73,301,363 2,579,375 12,289,597 Reconciliation to business-type activities: Some amounts reported for business-type activities in the Statement of Net Assets are different because certain internal balances are included with business-type activities. Net assets of business-type activities The notes to the financial statements are an integral part of this statement. 46 Total Enterprise Internal Service 1,608,948 499,758 147,032 1,597,690 4,048 - 191,873 - 30,504 - ~, ~ ~ 54,973 - 1,208,476 - 1,573,699 - 9,024 - 2,846,172 - 4,889,716 2,097,448 187,161 - 1,616,917 - 857,454 4,405,115 - 402,377 - 327,672 - 7,796,696 - 12,686,412 2,097,448 64,525,014 3,528,455 2,105,974 - 366,615 - 21,503,015 10,007,751 $8,170,335 13,536,206 ~ n~ ~ man $ 93,201,899 47 CITY OF NORTH RICHLAND HILLS, TEXAS Statement of Revenues, Expenses, and Changes in Fund Net Assets Proprietary Funds Year Ended September 30, 2007 Gperating revenues: Water and sewer service Water and sewer connections Service charges Inspection fees Assessment revenue Golf course fees and charges Aquatic park admissions Recreation equipment rental Food, beverage, and gifts Sponsorships Other intergovernmental Internal service revenues Miscellaneous revenues Total operating revenues Gperatinp expenses: Claims Contractual services Personal services Cost of golf course sales and service Repairs and maintenance Supplies Qepreciation Franchise fees Administration fees Total operating expenses Operating income (loss} Nanoperating revenues (expenses Investment income Interest expense and fiscal agent charges Insurance recovery proceeds " other income (expense} Gain (loss) on disposal of capital assets Total nonoperating revenues (expenses} -net Income (lass} before contributions and transfers Contributions and transfers: Non-cash contributions Payments in lieu of taxes Transfers in Transfers out Total contributions and transfers -net Net income Net assets- beginning of year Net assets- end of year Business^Type Activities -Enterprise Funds Water and Golf Aquatic Sewer Course Park $ 18,818,231 - - 649,830 - - 774,923 - - 19,392 - - 311 - - - 2,298,065 - - - 3,157,511 - - 59,461 - - 644,771 - - 34,250 1,367,659 - - - - 20,698 21,630,336 2,298,065 3,916,691 12,071,305 - 784,391 4,349,076 - 1 ,276,984 - 1,698,643 - 2,273,075 - 96,762 162,976 - 484,199 2,625,491 324,030 528,589 594,207 - - 1,414,807 87,996 102,297 23,490,937 2,110,669 3,273,222 (1,860,601 } 187,396 643,469 1,141,969 6,779 180,033 (105,015} (136,603} (160,270} 15,865 12,410 - 1 ,052,819 (1 15,414} 19,763 (807,782} 71 ,982 663,232 599,983 - - (357,847) - - 22,759 120,200 - (497,894} - - (232,999} 120,200 - (1,040,7E31} 192,182 663,232 74,342,144 2,387,193 11 ,626,365 $ 73,301,363 2,579,375 12,289,597 Reconciliation of Change in NetAssets -Business-Type Activities: Net income Some amounts reported for business-type activities in the Statement of Activities are different because the net revenue of certain internal service funds is reported with business-type activities Change in net assets of business-type activities The notes to the financial statements are an integral part of this statement. 4$ Total Enterprise Internal Service 18,818,231 - 649,830 - 774,923 - 19,382 - 311 - 2,298,065 - 3,157,511 - 59 ,4 61 - 644,771 - 34,250 - 1,367,659 - - 13,182,428 20,698 126,636 27,845,092 13,309,064 - 4,945,272 12,855,696 918,270 5,626,060 2,962,526 1,698,643 - 2,369,837 1,224,608 647,175 760,861 3,478,110 515,828 594,207 - 1,605,100 634,093 28,874,828 11 ,961 ,458 (1,029,736) 1 ,347,606 1,330,781 498,331 (401 ,888) - - 1 ,217,140 - 25,174 28,275 45,967 957,168 1 ,786,612 (72,568) 3,134,218 599,983 - (357,847) - 142,959 956,800 (497,894) (361,131) (112,799) 595,669 (185,367) 3,729,887 88,355,702 88,170,335 $ (185,367) 441 ,693 $ 256,326 9,806,319 13,536,206 49 CITY CF NORTH RICHLAND HILLS, TEXAS Statement of Cash Flaws Proprietary Funds Year Ended September 30, 2007 Business-Type Activities -Enterprise Funds Water and Aquatic Cash flows from operating activities: Receipts from customers Receipts from interfund services provided Other operating revenue (expense} Payments to suppliers Payments to employees Payments for internal services Net cash provided by operating activities Cash flows from noncapital financing activities: Transfers from other funds Transfers to other funds Interfund lawn receipts and payments -net Net cash used far noncapital and related financing activities Cash flows from capital and related financing activities: Insurance recovery proceeds Grant proceeds Proceeds from capital debt Acquisition and construction of capital assets Principal paid on capital debt Interest paid on capital debt Proceeds from sale of capital assets Net cash used for capital and related financing activities Cash flows from investing activities: Interest and dividends received Net cash provided by investing activities Net increase (decrease} in cash and cash equivalents Cash and cash equivalent beginning of year Cash and cash equivalent end of year Reconciliation of operating income to net cash provided by (used for) operating activities: Operating income (loss} Adjustments to reconcile operating income to net cash provided by (used for} operating activities: Depreciation expense Other (expense} income (Increase} decrease in accounts receivable (Increase} decrease in inventories (Increase} decrease in prepaid items Increase (decrease} in customer deposits Increase (decrease} in accounts payable Increase (decrease} in accrued liabilities Total adjustments Net cash provided ~f operating activities $ 21,449,816 2,264,356 3,905,992 1,583,202 - - (14,525,07$} (1,183,167} (1,487,010} (4,332,945} (656,411} (1,271,782) (2,366,861} - (102,297} 1,808,134 424,778 1,044,903 20,779 120,200 - (497,894} 1,980 - 24,378 (88,517} - (452,737} 33,663 - - - 700,000 (1,265,954} (160,318} (1,026,672} (300,963} (413,026} (287,702) (101,701} (140,545} (163,158} 17,865 12,410 - (1,650,753} (701,479} (777,532} 1,126,840 8,779 174,028 1,126,840 8,779 174,028 831,484 (234,259} 441,399 18,820,765 487,889 3,461,913 $ 19,652,249 253,630 3,903,312 $ (2,218,448} 187,396 643,469 2,625,491 324,030 528,589 215,543 - - 1,091,832 (33,709} (10,699} (79,679} (14,782} (3,042} 190,366 (1,785} (618} 95,307 - (95,318} (83,912} (109,649} (16,960} 47,540 (3,149} 4,026,582 237,382 401,432 $ 1,808,134 424,778 1,044,901 Noncash financing activities: Contributions of developer-dedicated capital assets $ 599,983 - The notes to the financial statements are an integral part of this statement. 50 Total Enterprise Internal Service 27,620,164 - 1,583,202 13,553,222 (17,195,255) (7,403,123 (6,261,138) (2,514,037} (2,469,158 (1,155,976) 3,277,$15 2,480,086 140,979 956,800 (495,914 (361,132) (64,139} - (419,074) 595,668 - 1,217,139 - 25,174 700,000 - (2,452,944) (1,279,113) (1,001,691 ~ - (405,404) - 30, 275 52, 974 1,309,647 465,253 1,309,647 465,253 1,038,624 3,557,180 22,770,567 8,252,136 23,809,191 11,809,316 (1,387,583) 1,347,606 3,478,110 515,828 215,543 - 1,047,424 239,962 (97,503) (7,572) 187,963 - 95,307 - (288,879) 304,788 27,431 79,474 4,665,396 1,132,4$0 3,277,813 2,480,086 599, 983 - 51 NCH TJhis page intentionally 1efl~ blank. 52 CITY ~F NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements September 30, 2007 Page Note I Summary of Significant Accounting Policies 55 A. Reporting entity 55 B. Government-wide and fund financial statements 56 C. Measurement focus and basis of accounting 56 D. Assets, liabilities, and net assets or equity 69 Deposits and investments 69 Receivables and payables 59 Inventories and prepaid items 60 Restricted assets 61 Capital assets 61 Compensated absences 62 Lang-term obligations 63 Fund Equity 63 Note II Reconciliation of Government-Ulfide and Fund Financial Statements 64 A. Balance sheet reconciliation 64 B. Statement of revenues, expenditures, and changes in fund balance reconciliation 65 Nate III Ste wardship, Compliance, and Accountability 67 A. Budgetary information 67 B. Excess of expenditures over appropriations 67 Note IV Detailed Notes on All Funds 68 A. Deposits and investments 68 Interest rate risk 69 Custodial credit risk 69 Credit risk 70 B. Receivables 7~ C. Capital assets 72 D. Interfund receivables, payables, and transfers 74 E. Lang-term debt 75 General obligation bonds 75 Certificates of obligation 76 Revenue bonds 7fi Operating lease 78 Changes in long-term liabilities 78 Bond refunding 79 Defeased debt outstanding 79 53 CITY OF NORTH RICHLAND HILLS, TEiCAS Notes to Basic Financial Statements September 30, 2007 Page Nate V Other Information 7g A. Risk management 7g B. Contingent liabilities 80 C. Conduit debt obligations 8~ D. Other post-employment benefits 81 E. Employee retirement systems and pension plans 81 Plan description 8~ Contribution 82 F. Operations of component units 83 G. Implementation of GASB Statements 84 Recently implemented 84 Future implementation 84 54 CITY ~F NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of North Richland Hills, Texas (the "City"} Home Rule Charter was adapted by the voters at an election held on November 3, 1964. The City operates under aCouncil-Manager form of government. The City provides a full range of services including police and fire protection; municipal court operations; the construction and maintenance of streets and infrastructure; parks, library, and recreational activities including tennis center operations; neighborhood services activities; planning and inspections; and the operations of a water and wastewater system, a golf course, and a public waterpark. A private contractor, through a franchise agreement, provides solid waste collection and disposal services for the City. The accounting policies of the City conform to accounting principles generally accepted in the United States of America ("GAAP"} as applicable to governmental units. The Govemmental Accounting Standards Board ("GASB"} is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant accounting policies of the City are described below. A. Reporting Entity As required by GAAP, these basic financial statements present the primary government and its component units, entities for which the government is considered to be financially accountable. The blended component units, although legally separate entities, are, in substance, part of the primary government's operations. As such, data from these units is combined with data of the primary government. Discretely presented component units are entities that are legally separate from the City, but for which the City is financially accountable ar whose relationships with the City are such that exclusion would be misleading or incomplete. Discretely presented component units of the City are presented in a separate column in the combined financial statements to emphasize they are legally separate from the primary government. The component units have September 30 year-ends. Blended Component Un~s -The North Richland Hills Parks and Recreation Facilities Development Corporation ("PRD"} is used to account forthe accumulation of resources to build and improve City parks and recreational facilities and fund economic development activities. The North Richland Hills Crime Control and Prevention District ("CCD"} is used to account for the accumulation and use of half-cent sales tax proceeds dedicated for crime reduction programs. The PRD and CCD are reported as special revenue funds of the primary government. The Boards of Directors of both component units are substantively the same as the City Council. Complete financial statements for the individual component units maybe obtained at the City's offices. Discretely Presented Component Units -Tax Increment Financing District No. 1 ("TIF #1 "} was created to fund drainage improvements that would alleviate flooding problems, reduce property damage associated with the flooding, and stimulate development within the District. Tax Increment Financing District No.2 ("TIF #2") was created to provide funding for public improvements that would benefit the participants in and citizens of the District as well as others in the Metraplex area. Planned public improvements totaling $65.2 million include construction of a conference center, a recreation center, a library, and infiastructure improvements. These TIFs meet the criteria far being classified as discrete component units as the City appoints a voting majority of the organizations' governing bodies and is able to impose its will an the organizations, and because the organizations are fiscally dependent an the primary government. Complete financial statements far the individual component units maybe obtained at the City's offices. 55 CITY ~F NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements B. Government-Wide and Fund Financial Statements The govemment-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets} report information on all of the nonfiduciary activities of the primary government and its component units. Far the mast part, the effect of interfund activity has been eliminated from these statements. However, interfund services provided and used are not eliminated in the consolidation process. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately fi-om business-type activities, which rely to a significant extent an user fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary govemment is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment; and grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flaws. Property taxes are recognized as revenues in the year far which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the govemment considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the govemment. ~s CITY OF NQRTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements The government reports the following major governmental funds: The General Fund is the City's primary operating fund. It accounts for all financial resources traditionally associated with governments which are not required to be accounted for in another fund. Major functions financed by the General Fund include general government, public safety, culture and recreation, and public works. Financing is provided from taxes (primarily property, sales, and franchise), licenses and permits, fines, and investment income. The Parks and Recreation Facilities Development special revenue fund accounts for the accumulation and use of resources to build and improve City parks and recreation facilities as well as economic development projects. Financing is provided primarily from sales taxes and intergovernmental revenues. The Crime Control and Prevention District special revenue fund accounts for the accumulation and use of half-cent sales tax proceeds dedicated for crime prevention and reduction programs. Financing is provided primarily from sales taxes and investment income. The General Debt Service fund accounts for the accumulation of resources for the payment of principal, interest, and related charges on long-term general obligation debt of governmental funds. Financing is provided primarily by a specific annual property tax levy. The General Capital Projects fund is used to account for financial resources used for the acquisition or construction of major street and drainage capital assets and municipal facilities. Financing is provided from the sale of general obligation bands, certificates of obligation, operating funds, and special assessments. The Streets 1994 Election capital projects fund is used to account far the financial resources used for the acquisition or construction of major street capital assets. Financing is provided primarily from the sale of general obligation bonds as authorized by the voters in the 1994 band election. The government reports the fallowing major proprietary funds: The Water and Sewer enterprise fund accounts for the distribution of water, transportation of wastewater, and solid waste removal services provided to the residents of the City. All activities necessary to provide such services are accounted for in the fund, including, but not limited to, administration, operations, maintenance, financing and debt service, and billing and collections. The Golf Course enterprise fund accounts far the operations of Iron Horse Golf Course, the Cites public golf course. All activities necessary to operate the course are accounted for in the fund, including, but not limited to, administration, operations, course maintenance, and financing and debt service. The Aquatic Park fund accounts for the operation of NRH2O, the Cites public waterpark. All activities necessary to operate the park are accounted far in the fund, including, but not limited to, administration, park operations, park maintenance, and financing and debt service. 57 CITY ~F NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements Additionally, the govemment reports the following funds: Several additional special revenue funds are used to account for specific revenue sources as well as the specialized operations funded therewith. The Sales Tax Revenue Debt Service fund is used to accumulate monies for the payment of principal, interest, and related charges on sales tax revenue bonds. A multitude of capital projects funds are used to account far the financial resources to be used far the acquisition or construction of major capital assets, such as streets, drainage facilities, and municipal facilities. Financing is provided primarily by the sale of general obligation bonds as authorized by the voters in either the ~ 994 or 2003 bond elections. Internal service funds account far building maintenance services, fleet management, computer and telephone service, as well as insurance coverage provided to other departments of the City, on a cost reimbursement basis. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards da not conflict with or contradict guidance of the Governmental Accounting Standards Board. Gavemments also have the option of following subsequent private- sector guidance for the business-type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance. As a general rule, the effect of interfund activity has been eliminated from the govemment-wide financial statements. However, interfund services provided and used are not eliminated in the consolidation process. Amounts reported as program revenues include 1} charges to customers or applicants for goods, services, or privileges provided, 2} operating grants and contributions, and 3} capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result fi-am providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds and of the internal service funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds and intemal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting the definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. 5$ CITY OF NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements D. Assets, Liabilities, and Net Assets or Equity Deposits and investments Deposits consist of cash and cash equivalents. Substantially all operating deposits and investments are maintained in pooled deposits and investment accounts. Interest income relating to pooled deposits and investments is allocated monthly to the participating individual funds based on each fund's pro-rata share of total pooled deposits and investments. Investments consist of (1 }investments in public fund investment pools, (2} short-term investments that mature in 12 months ar less from the time of purchase and (3) investments that mature in greater than 12 months from the time of purchase. Other than investment pools, mast of the City's investments are long-term (i.e., at the time of purchase, the maturity equals or exceeds one year) and, accordingly, the investments are carried at fair value in accordance with GASB Statement No. 31, "Accounting and Financial Reporting for Certain Investments and for External Investment Pools." 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, 2007, the City did not own any types of securities other than those permitted by statute. Far the purposes of presenting the statement of cash flows for Proprietary Funds, cash and cash equivalents are defined as demand deposits and pooled deposits and investments (Note IV}. Receivables and payables Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due talfrom other funds" ~i.e., the current portion of inter-fi.~nd loans} ar "advances tolFrom other funds" (i.e., the non-current portion of interiund loans}. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available far appropriation and are not expendable available financial resources. All trade and property tax receivables are shown net of an allowance for uncollectibles. Trade accounts receivable in excess of 90 to 180 days comprise the trade accounts receivable allowance for uncollectibles. The property tax receivable allowance is equal to property taxes outstanding far mare than four fiscal years (the current fiscal year plus three prior years). As such, property taxes levied prior to fiscal year 2003 which remain outstanding at year end comprise the allowance balance of September 30, 2007. 5~ CITY ~F NORTH RICHLAND HILLS, TE7CAS Notes to Basic Financial Statements The City's properly tax is levied each October ~ on the assessed value listed as of the prior January 1 far all real property and certain personal property located in the City. Tax liens attach as of February 1. Taxes are due upon receipt of the tax bill. 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 assessed valuation. The combined tax rate to finance general governmental service and debt service far the year ended September 30, 2007 was $.57 per $100 of assessed valuation. Inventories and prepaid items All inventories are valued at cost using the first-in/first-out ("FIFO") method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Inventories are offset by a fund balance reserve account in applicable governmental funds to indicate the inventory values are not available for appropriation and are not expendable available financial resources. Certain payments to vendors reflect casts applicable to future accounting periods and are recorded as prepaid items in bath government-wide and fund financial statements. Restricted assets Certain resources set aside far the repayment of outstanding City debt are classified as restricted assets on the balance sheet because their use is limited. The "debt service reserve funds - depasits and investments" and "interest and sinking fund reserves -deposits and investments" accounts are used to segregate resources accumulated far the current portion of outstanding debt. The "construction funds -deposits and investments" account includes, but is not limited to, unspent bond proceeds that are limited as to use for financing the acquisition ar construction of capital assets. Net assets have been reserved far 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 ar in part from bond proceeds). Assets have also been restricted by management far the following: The Crime Cantral and Prevention District (Special Revenue} Fund contains assets restricted for transition. In the event that the half-cent sales tax funding CCD activities is discontinued, the restricted assets will be used to fund thane activities until an alternate funding source can be identified (i.e., during the transition period). The Water and Sewer (Enterprise) Fund and the Aquatic Park (Enterprise} Fund both contain assets restricted far future construction and infrastructure maintenance. The purpose is to designate funds for future capital projects and to reduce the amount of future bond issues for capital projects. The Water and Sewer Enterprise} Fund also contains assets restricted far rate stabilization. The restriction is intended to lessen the impact of increases in contractual services from the Trinity River Authority and the City of Fart Worth far water and wastewater services. 6d CITY ~F NORTH RICHLANQ HILLS, TEXAS Notes to Basic Financial Statements The Aquatic Park (Enterprise} Fund and the Self-Insurance (Internal Service} Fund both contain assets restricted for future insurance claims. Funds will be accumulated until needed to cover the costs of excessive claims or until management has determined sufficient funds have been accumulated to cover future claims. The Information Services (Intemal Service} Fund contains assets restricted for future system improvements. The intended purpose is to fund major computer system software and hardware system replacements and upgrades. The Building and Equipment Support Services (Intemal Service} Funds contain assets restricted far building and equipment maintenance and replacement. The building restriction is used to accumulate funds for the implementation of the multi-year plan. Equipment restrictions are used to accumulate funds far the replacement of vehicles and heavy equipment. Capital assets Capital assets, including property, plant, equipment, and infrastructure assets (e.g., roads, bridges, drainage facilities, parks and related improvements, and similar items}, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements and in the proprietary fund level financial statements. Capital assets are defined by the government as assets with an initial, individual cast of at least $5,000 and an estimated useful life in excess of one year. Assets purchased or constructed are recorded at historical cost when available ar estimated historical cost if actual cast is unavailable. Donated capital assets are recorded at estimated fair market value at the date of donation. The casts of normal maintenance and repairs that do not add to the value of the asset ar materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. The total interest expense incurred by the City during the current fiscal year was $3,281,924. Of this amount, $110,190 was capitalized as part of the cost of a variety of capital assets under construction in the Cites enterprise funds. Recording of infrastructure assets acquired prior to the 2003 fiscal year in which the City implemented GASB Statement Na. 34 is complete. Streets, drainage facilities, and park and recreational facilities have been recorded to the extent the capitalization requirements instated in fiscal year 2003 were met. The final valuation and recording of right-of--way was completed in fiscal year 200fi. 61 CITY ~F NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements Capital assets of the primary govemment are capitalized at the fallowing thresholds and are depreciated using the straight-line method over the following estimated useful lives: Capitalization Asset Category Useful Life Threshold Buildings and improvements 30 years $ 100,000 Other improvements 30 years 100,000 111later and sewer system 33 years 100,000 Capitalized interest 33 years 5,000 Start-up casts, furniture and fixtures, and certain machinery and equipment 10 years 5,000 Firetrucks and ambulances 20 years 25,000 Other machinery and equipment including vehicles 3-6 years 5,000-25,000 Assets purchased ar constructed with Federal ar State grant funds various 5,000 Compensated absences City employees are granted vacation leave in varying amounts depending an length of service. Sick leave is also granted to employees after six months of service. In the event of termination after one ar mare years of service, an employee is paid far all accumulated unused vacation. Na reimbursement is made far unused accumulated sick leave upon termination of employment, except upon retirement. Upon retirement, an employee may convert up to six weeks of accrued sick leave to vacation. Sick pay is recorded when taken. All vacation pay is accrued as vested and included in accrued liabilities in the govemment-wide and proprietary fund financial statements. Accrued vacation pay, including converted sick leave, that is expected to be liquidated within one year, is reported as a short-term liability. The remainder of the liability is reflected as long-term. Compensated absences are reported in governmental funds only if they h av e m atu red . Accrued vacation pay and potential sick leave conversion reported on the government-wide financial statements at September 30, 2007 consisted of the fallowing: Accrued Vacation Governmental activities Short-term beginning balance Fiscal year increase in short-term Fiscal year decrease in short-term Short-term ending balance $ 340,195 34,789 {1,008} 373,976 Long-term beginning balance Fiscal year increase in long-term Fiscal year decrease in long-term Long-term ending balance Total governmental activities 1,206,155 123,330 {3,570} 1,325,915 1,699,891 Potential Sick Leave Conversion $ 148,172 26,202 {11,141} 163,233 504,003 56,915 {22,028} 538,890 702,123 62 CITY OF NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements Accrued Potential Sick Vacation Leave Conversion Business-type activities Short-term beginning balance Fiscal year increase in short-term Fiscal year decrease in short-term Short-term ending balance Long-term beginning balance Fiscal year increase in Tong-term Fiscal year decrease in long-term Long-term ending balance Total business-type activities Total short-term {amount due within one year} Total long-term {amount due within one year} Long-term obligations $ ~ 30,956 $ ~ 5,071 28,466 ~ 7,386 {6} ~ 59,416 305,441 30,234 {21} 335,654 495,070 32,457 73,911 {7,188} 66,723 99,180 $ 533,392 $ 1,661,569 $ 195,690 $ 605,613 In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable gavemmental activities, business-type activities, ar proprietary fund type statement of net assets. Band premiums and discounts, issuance costs, and lasses an band refundings are deferred and amortized aver the life of the related debt using the straight-line method which approximates the interest method. Bands payable are reported net of the applicable unamortized loss on refunding. In the fund financial statements, gavemmental fund types recognize band premiums and discounts, as well as band issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts an debt issuances are reported as other financing uses. Issuance casts, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Fund equity In the fund financial statements, gavemmental amounts that are not available for appropriation specific purpose. Designations of fund balance subject to change. funds report reservations of fund balance for ar are legally restricted by outside parties for a represent tentative management plans that are The General Fund equity contains designations for economic development ("ED"}, savings incentive program, special projects, and insurance restoration plan. Council and management have established an ED cash reserve to participate in approved economic development activities throughout the City. The savings incentive program was established to encourage departments to identify and implement cost saving measures whereby savings would be accumulated far authorized use at a later date. Retirement stabilization is designated far anticipated increases in TMRS funding requirements. The designation far utility billing assistance is a result of a TXU settlement to be used to help water and sewer customers who are able to prove need of 63 CITY ~F NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements assistance in paying their bills. The designation for special projects was established for rail station development and 820 facility planning. The insurance restoration plan is discussed in detail later in this section. The Crime Control and Prevention District (Special Revenue} Fund equity contains a designation for transition. Assets have been restricted in an amount equal to the designation. In the event that the half-cent sales tax funding CCD activities is discontinued at the conclusion of the current referendum in 201 ~ , appropriations from the designation and the associated assets will be used to fund those activities until an alternate funding source can be identified (i.e., during the transition period}. In fiscal years 2002 and 2003 the Self Insurance (Internal Service} Fund reserves of $3.1 million were depleted due primarily to spiraling inflation in the health care industry and unforeseeable extraordinary health claims. In fiscal year 2004, City Council adopted a strategy to rebuild reserves over asix-year period beginning in fiscal year 200b. Savings from changes in the health care plan, transfers from existing cash reserves in the General Fund and Water and Sewer Fund, and employee premiums are being used to re-establish the reserves. An estimated $1.6 million in reserves, representing 20°~ of anticipated 2010 claims, were expected as a result of the adapted strategy. Far fiscal year 2007, the fund recorded a net increase in cash and cash equivalents of $1,948,237 to end the year at a balance of $3,b18,411. II. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A. Explanation of certain differences between the governmental fund balance sheet and the government-wide statement of net assets The governmental fund balance sheet includes a reconciliation between fund balance -total governmental funds and net assets -governmental activities as reported in the government-wide statement of net assets. One element of that reconciliation explains that "capital and other assets used in governmental activities are not financial resources and, therefore, are not reported as assets in the governmental funds." The details of the $174,214,971 difference are as follows: Capital assets, net of depreciation $ 157,fiG2,8b7 Construction in progress 16, 5 5 2,114 Net adjustment to increase fund balance -total governmental funds to arrive at net assets -governmental activities $ 1?4,214,971 Another element of that reconciliation explains that "certain receivables are not available to pay current-period expenditures and, therefore, are deferred in the funds." The details of the $1,213,8fi6 difference are as follows: 1Vlunicipal court receivables $ 427,345 Deferred revenue 786,521 Net adjustment to increase fund balance -total governmental funds to arrive at net assets -governmental activities $ 1,213,866 64 CITY ~F NORTH RICHLAND HILL, TEAS Notes to Basic Financial Statements The third element of that reconciliation explains that "the assets and liabilities of the intemal service funds are included with govemmental activities in the statement of net assets but are not included at the fund level." The details of the $8,504,842 difference are as follows: Net assets, internal ser~rice funds combined $ 13,536,206 Amount allocated tobusiness-type activities (5,031,564) Net adjustment to increase fund balance -total governmental funds to arrive at net assets -governmental activities $ 8,504,642 The last element of that reconciliation explains that "long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds." The details of the $53,843,493 difference are as follows: B Bonds payable -short-term $ (6,153,939} Bonds payable -long-term (44,312,944) Accrued interest payable (341,154} Arbitrage liability (165,867} Bond issuance casts 383,112 Compensated absences (2,252,701) Net adjustment to reduce fund balance -total governmental funds to arrive at net assets -governmental activities $ (52,843,493} Explanation of certain differences between the govemmental fund statement of revenues, expenditures, and changes in fund balances and the govemment-wide statement of activities The govemmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances -total govemmental funds and changes in net assets of governmental activities as reported in the govemment-wide statement of activities. One element of that reconciliation explains that "governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated aver their estimated useful lives and reported as depreciation expense." The details of this $2,478,199 difference are as follows: Capital outlay -asset acquisitions $ 336,041 Capital outlay -project expense 3,109,849 Loss on the disposal of assets (61,949) Depreciation expense (5,862,140) Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities $ (2,478,199) The second element of that reconciliation explains that "revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds." The details of this $71,176 difference are as follows: 65 CITY ~F NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements Miscellaneous revenues Net adjustment to increase net changes in fund balances - totalgovernmental funds to arrive at changes in net assets of governmental activities 71,176 $ 71,176 The next element of that reconciliation explains that "certain long-term liabilities are accrued at the government-wide level but not at the fund level." The details of this $b89,698 difference are as follows: Accrued interestlinterest expense $ (279,907) Compensated absences (309,791) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities $ (~gg,648) Another element of that reconciliation states that "bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. This is the difference between repayments and proceeds received." The details of this $4,b03,004 difference are as follows: Debt issued or incurred: Issuance of general obligation refunding bonds $ (5,085,000) Issuance of general obligation improvement bonds (1,600,000) Issuance of certificates of obligation (585,000) Principal repayments: General obligation bonds $ 4,666,637 Certificates of obligation 1,170,580 Sales tax revenue bonds 860,000 Payment to escrow agent for refunding 5,203,052 Net adjustment to increase net changes in fund balance -total governmental funds to arrive at changes in net assets of governmental activities $ 4,630,269 66 CITY ~F NORTH RICHLAND HILLS, TEAS Notes to Basic Financial Statements Another element of that reconciliation states that "the net revenue (expense} of intemal service funds is reported with gavemmental activities." The details of the $3,288,194 difference are as foil aws: Change in net assets- intemal service funds combined $ 3,729,888 Expenses reflected in business-type activities (441,694} Net adjustment to increase net changes in fund balances - total gavemmental funds to arrive at changes in net assets ofgovemmental activities $ 3,288,194 III. STEUVARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary information Annual budgets are adapted on a basis consistent with generally accepted accounting principles far all governmental funds except the Special Investigation, the Parks and Recreation Facilities Development, the Grant, Traffic Safety, Gas Development, and the Economic Development special revenue funds. The capital projects funds adopt project-length budgets. All annual appropriations lapse at fiscal year end. Prior to September 1, the City Manager submits to the City Council a prapased operating budget far the fiscal year commencing the fallowing October 1. The operating budget includes prapased expenditures and the means of financing them. Public hearings are conducted to obtain taxpayer comments. Prior to September 30, the budget is legally enacted through passage of an ordinance. The appropriated budget is prepared by fund, department, and division. 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. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the fund level. During the year, several supplementary appropriations totaling approximately $1.7 million were necessary, due to additional apprapriatians to the expenditure budgets of the fallowing funds: General, Park and Recreation Development, Special Investigation, Crime Control, Gas Development, Traffic Safety, and Aquatic Park. Supplemental apprapriatians were due to payments of prior year encumbrances, increases in the cost of doing business during the fiscal year and additional capital outlay necessary to provide the program of services. Fund balances as well as additional estimated revenues were allocated to cover additional budgeted expenses. Encumbrance accounting is employed in gavemmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be re-appropriated and honored during the subsequent year. B. Excess of expenditures over appropriations For the year ended September 30, 2007, expenditures exceeded apprapriatians in the Drainage Utility Special Revenue Fund by $1,771 which was funded with cash on hand. 67 CITY ~F NGIRTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements IV. DETAILED NOTES ON ALL FUNDS A. Deposits and investments As of September 30, 2007, the City's portfolio contained the following investments: °r6 of Rating Investment Type Fair Value Portfolio WAM Rating Agency Primary Government Overnight pawls: TexPaol $ 1 fi,497,40fi 19.85°~ 34 AAAm S&P LOGIC 1,773,157 2.13°r6 34 AAAm S&P TexSTAR 10,775,790 12.9fi% 20 AAAm S&P MBIA Class 9,988,97fi 12.02°r6 41 AAAIVI + Fitch Total overnight $ 39,035,329 4fi.9fi°~6 U.S. Issues: FH LB 28,052,812 33.75% 113 Aaa Moods FHLMC 13,022,720 15.fifi°~ 52 Aaa Maod~s FFCB 3,019,fi88 3.fi3°~ 18 Aaa Maod~s Total U.S. Issues $ 44,095,220 53.04°~ Total partfalia $ 83,130,549 100.00°~ 213 Component Units Overnight pawl: TexPaol $ fi,Ofi2,512 100.00°~6 34 AAAm S&P Weighted average maturity (`°WAM") of the partfalia by investment type categories reflected in the previous table is stated in days. Far the investment pawls, the Reset WAM is presented. Investment type acronyms displayed in the previous table are defined as follows: FHLB -Federal Home Loan Bank, FHLMC -Federal Hame Loan Mortgage Corporation, and FFCB -Federal Farm Credit Bank. The rating agency acronyms are defined as follows: S&P -Standard and Paar's Ratings Services, a division of the McGraw-Hill Companies, Inc.; Maody's - Moad~'s Investor Service, Inc.; and, Fitch -Fitch Ratings. Additional information about the rating agencies ar the significance of the ratings provided may be obtained from each agency's web site. 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. Because the City is responsible far the investment portfolio of its component units, the City's investment practices and policies disclosed herein apply equally to its component units. During the year ended September 30, 2007, the City did not awn any types of securities other than those permitted by statute. The City's investment pools are 2a7-like pools. A 2a7-like pool is one which is not registered with the Securities and Exchange Commission ("SEC"} as an investment company, but nevertheless has a policy that it will, and does, operate in a manner consistent with the SEC's Rule 2a7 of the Investment Company Act of 1940. This type of pool uses amortized investment costs rather than market values to compute participant share values. Furthermore, the pools in which the City is currently participating seek to maintain a stable $1 net asset value per share ar unit. Accordingly, the fair value of the City's position in these pools is substantially the same as the market value of the shares in each of the pools. 6$ CITY ~]F NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements TexPaol falls under the purview of the Texas Comptroller of Public Accounts ("Comptroller"} who is responsible far oversight of TexPool operations. Each of the other pools has established a governing board at least partially comprised of pool participants. Duties of the governing boards include oversight responsibility. The Comptroller and the governing boards exercise oversight of the pools' activities via daily, weeldy, and monthly reporting requirements. Additionally, per the requirements of the Public Funds Investment Act ("PFIA"}, all portfolios will maintain an AAA or equivalent rating from at least one nationally recognized rating agency. The PFIA also requires an annual examination of the financial statements of the pools by an independent certified public accounting firm. In connection with the financial audit, a compliance audit of management controls on investments and adherence to the Investment Policies is also required. Interest Rate Risk -Interest rate risk is the potential far a decline in market value due to rising interest rates. In accordance with its formally-adapted investment policy, the City manages its exposure to declines in fair market value by limiting the portfolio's weighted average maturity to a maximum of 3fi5 days. The City also employs an investment maturity laddering structure to stagger investment maturities at various monthly rungs on the ladder. Doing so, in a rising interest rate market, provides the City with the ability to reinvest the proceeds from the maturities in higher- yielding securities given the proceeds are not required to meet immediate cash flow needs. The City's current investments mature in 24 months or less. The following details the maturity schedule for the City's investments as of September 30, 2007. Maturity °lo of Maturity Schedule ~ Value Total Overnight $ 4,097,841 S1% 1 day to 3 months 3,000,000 3°fo 3 to 6 months 8,000,000 9°fo 6 to 9 months 2,000,000 2% 9 to 12 months 9,000,000 11% 12 to 15 months 6,000,000 7% 1 S to 18 months 6,000,000 7°f° 18 to 24 months 10,000,000 Total 89, 097, 841 11 °~o 100% Custodial Credrl Risk -The risk that a government will not be able to recover (a) deposits if the depository financial institution fails or (b} the value of investment or collateral securities that are in the possession of an outside party if the counterparty to the investment or deposit transaction fails. To minimize such risk, the City requires collateralizatian of deposits in excess of Federal Deposits Insurance Corporation ("FDIC"} coverage, utilizes the delivery vs. payment method for investment purchases, and contracts with athird-party safekeeping agent. 69 CITY ~F NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements Per the terms of its depository agreement, for bank deposits in excess of the coverage provided by the FDIC, the City requires the depository bank to pledge to the City securities (collateral} equal to the following percentages, as applicable, to the largest balances the City maintains in the Bank. U.S. Other 1Vlazurity of Collateral Treasuries Securities 1 year or less 101% 102°l0 1 year to 5 years 102°l0 105% Over 5 years 103°l0 110°l0 The percentages as shown reflect the requirement based on market value of the pledged securities. The City actively monitors and manages collateral levels for all deposits. On September 30, 2007, the Cites bank balances were insured or fully collateralized. The City's depository bank also acts as its safekeeping agent per the terms of the depository contract. City policy dictates that all securities rendered far payment will be sent delivery vs. payment meaning that the funds required for purchase of a security will not be released until the safekeeping agent has received the security purchased in the City's name. No broker holds City funds. The City does not purchase securities from its depository bank or any subsidiary banks of the same bank holding company. Credo Risk -Risk that an issuer or other counterparty to an investment will not fulfill its obligations. In order to minimize credit risk, the City limits investments to those rated as to investment quality of not less than "A" or its equivalent by a nationally recognized rating firm. Diversification of the portfolio is also employed to manage credit risk. The investment policy limits the percentage of the portfolio that may be invested in any specific type of security. Ratings for the City's investments and the percentage of the total portfolio of each investment type held at the end of year can be found an the first table in this section. ~a CITY ~F NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements B. Receivables Governmental funds receivables as of year end far the City's major funds and nonmajar in the aggregate, including the applicable allowances far uncallectible accounts, are as follows: Governmental Park &, Crime General General Street Fiords Rec Fac Control Debt Capital 1994 General Dev District Service Projects Election Nonmaj or and Other Total Funds Governmental Receivables: Accounts $ 626,156 29,977 - - - 65,481 110,143 831,757 Property taxes 777,075 - - - - - - 777,075 Other taxes 1,665,563 746,282 683,912 - - - 65,422 3,161,179 Interest receivable 115,837 - - 24,300 251,109 2,873 26,472 420,591 Special assessments - - - - 230,015 - - 230,015 Intergov't - 1,540,954 - - - - 31,453 1,571,407 Other 51,542 - - - - - - 51,542 Gross receivables 3,236,173 2,317,213 683,912 24,300 481,124 68,354 233,490 ?,044,566 Less: allowance for uncollectibles (416,063) - - - - - - (416,063) Net total receivables $ 2,820,110 2,317,213 683,912 24,300 481,124 68,354 233,490 6,628,503 Proprietary Water Funds and Golf Aquatic Internal Total Total Sewer Course Park Service Proprietary Receivables Receivables: Accounts $ 3,456,008 - - 3,456,008 4,287,765 Property taxes - - - - 777,075 Other taxes - - - - 3,161,179 Interest receivable 148,834 - 27,915 92,771 269,520 690,111 Special assessments - - - - 230,015 Intergov't 82,947 - - 82,947 1,655,354 Other 13,553 174,795 107,505 1_ 306,021 357,563 Gross receivables 3,701,342 174,795 135,420 102,939 4,114,496 11,159,062 Less: allowance for - uncollectibles (67,739) - - - (67,739) (483,802) Net total receivables $ 3,&33,603 174,795 135,420 102,939 4,046,757 10,675,260 71 CITY OF NORTH RICHLAND HILLS, TEAS Notes to Basic Financial Statements Deferred Revenue Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Govemmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows: Unavailable Unearned Delinquent property taxes receivable (General Fund) $ 410,361 $ - Recreation membershipslfees (General Fund) - 16,263 Special assessments (General Capital Projects Fund} 356,113 - Grant proceeds (Grant Fund} - 17,926 Accounts (developer} receivable (Streets 1994 Election Fund} 20,047 4b,433 Total deferred/unearned revenue for governmental funds $ 786,521 $ 79,622 C. Capital assets Capital asset activity for the year ended September 30, 2007 was as follows: Primary Governm~t Beginning Ending Governmental activities: Balance Increases Decreases Balance Capital assets, nondepreciable Land $ 67,657,845 102,378 - 67,760,223 Works of art 72,491 - - 72,491 Construction in progress 16,125,608 3,515,537 2,075,302 17,565,843 Total nondepreciable 83,855,944 3,617,915 2,075,302 85,398,557 Capital assets, depreciable: Buildings 24,409,065 20,620 - 24,429,685 C)ther improvements 130,270,766 1,799,690 - 132,070,456 Machinery and equipment 19,580,995 1,359,574 863,263 20,077,306 Total depreciable 174,260,826 3,179,884 863,263 176,577,447 Less accumulated depreciation for: Buildings (11,705,845) {689,736) - (12,395,581} ether improvements {52,392,466 {4,517,657} - {56,910,123} Machinery and equipment 14,553,112 1,186,336 812,578 14,926,870 Total accumulated depreciation 78,651,423 6,393,729 812,578 85,857,730 Total depreciable -net 95,609,403 {3,213,845) 1,675,841 90,719,717 Governmental activities -net ~ 179,465,347 404,070 3,751,143 176,118,274 72 CITY ~F NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements Primary Government Business-type activities: Capital assets, nondepreciable Land Construction in progress Total nondepreciable Capital assets, depreciable: Buildings Utility Plant Other improvements Machinery and equipment Total depreciable Less accumulated depreciation for: Buildings Utility Plant Other improvements Machinery and equipment Total accumulated depreciation Total depreciable -net Business-type activities -net Beginning Ending Balance Increases Decreases Balance $ 2,526,639 - - 2,526,639 2,580,395 2,518,883 1,901,398 3,197,880 5,107,034 2,518,883 1,901,398 5,724,519 2,626,046 1,000,395 - 3,626,441 83,597,415 1,202,074 84,374 84,715,115 19,098,534 193,163 - 19,291,697 2,466,086 181,278 105,787 2,541,575 107,788,081 2,5 76,908 190,161 110,174,828 {1,350,595} {77,855} - {1,428,450} {31,028,552} {2,806,005} - {33,834,557} {6,073,751} {419,855} - {6,493,606} {1,798,962} (118,715} - (1,917,677} (40,251,860} (3,422,430} - (43,674,290} 67,536,221 {845,522} 190,161 66,500,538 $ 72,643,255 1,673,361 2,091,559 72,225,057 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government Public safety Culture and recreation Public works Internal services Total depreciation expense -governmental activities Business-type activities: Water and sewer Golf course Aquatic park Total depreciation expense -business-type activities $ 399,411 381,767 1,005,975 4,090,748 515,828 $ b,393,729 $ 2, 569,811 3 24,03 0 528,589 $ 3,422,430 l3 CITY QF NQRTH RICHLANQ HILLS, TEXAS Notes to Basic Financial Statements Construction commitments The City has active construction projects as of September 30, 2007. The projects include street construction, widening, and streetscaping; as well as construction of drainage facilities, parks and park improvements, and municipal facilities. At year-end the City's commitments with contractors were as follows: Expended to Project September 30, Authorisation 2007 Committed Streets, crainagey public safety and park improvements $ 13,637,164 6,129,731 7,507,433 D. Interfund receivables, payables, and transfers At September 30, 2007, interfund balances consisted of the fallowing: Due Fram Due to Advances to Advances from Other Funds Other Funds Other Funds Other Funds Water and sewer fund $ 24,378 - 290,911 - Golf course fund - 61,139 - 327,672 General CI P fund 36,761 - 36, 761 - 61,139 61,139 327, 672 327, 672 Due to and due from other funds are the short-term portion of the advances to and advances from other funds. The Golf Course Fund is currently repaying two interfund loans to the General Capital Projects Fund and the Utility Fund. The GCP loan in the amount of $183,805 with an interest rate of 3.00°r6 is scheduled for repayment through 2009. The Utility Fund loan amount was a little aver $536,000 with an interest rate of 8.50°~. The loan is currently being repaid based an water consumption. The current estimated pay-off is fiscal year 2016. The Golf Course loan from the General Fund was fully repaid in fiscal year 2006. Interfund transfers Transfers in General General Subtotal /1/,~jor Governmental General Debt Service Cap Proj Major Gott Transfers out General $ - - 215,819 215,819 Parks and recreation facilities development - 191,918 - 191,918 Streets 1994 election - - 257,844 257,844 Nonmajor governmental - - 206,992 206,992 Water and sewer 236,294 - 236,294 Internal service - 311,131 - 311,131 Total tranfers in $ 236,294 503,049 680,655 1,419,998 74 CITY aF NORTH RICHLANQ HILLS, TEXAS Notes to Basic Financial Statements Transfers in Nonmajor Internal Major Subtotal Total Ofh~erFunds governmental service Business Type tither Transfers Out Transfers out General 1,877,080 360,200 - 215,819 2,453,099 Parks and recreation facilities development 1,255,776 - - 191,918 1,447,694 Crime control and prevention district - 85,000 - - 85,000 General capital projects 165,961 200,000 - - 365,961 Streets - 1994 Election - - 22,759 257,844 280,603 Nonmajor governmental 1,007,186 - 120,200 206,992 1,334,378 Water and sewer - 261,600 - 236,294 497,894 Internal service - 50,000 - 311,131 361,131 Total tranfers in 4,306,003 956,800 142,959 1,419,998 6,825,760 General fund had various appropriations to transfer funding to other activities and operations. $252,400 was transferred to General Capital Projects Fund for 2007 capital projects. The fund continued the support to the City's Self Insurance fund by transferring $109,800. This transfer was to satisfy a fiscal plan to reestablish the total net assets reserves of the internal service activity. $100,000 was transferred to Information Systems Fund to facilitate a new PBX system. $477,080 was transferred to use for Economic Development. $1,100,000 was transferred to Pemanent Street Maintenance fund for future improvements. Sidewalk Fund received a transfer of $50,000 far utilization for future projects. Parks and Recreations Facilities Development fund appropriated and transferred $117,693 far Economic Development activity. Transfers were made for the fund's portion of debt service payments: $191,918 to General Debt Service Fund and $1,138,083 to Sale Tax Revenue Bond Debt Service Fund. Drainage Utility Fund transferred its portion of debt service, $707,186, to General Debt Service Fund. Gas Development appropriated and transferred funding to General Fund $100,000, Permanent Street Maintenance Fund $200,000, and Golf Fund $120,200. E Long-term debt General Obligation Bands The City issues general obligation bonds to provide funds for the acquisition and construction of major capital assets such as streets, drainage structures, and municipal facilities, as well as far the purpose of refunding a portion of its outstanding debt. General obligation bonds have been issued far both governmental and business-type activities. During the year, $1,600,000 in new general obligation bonds were issued and $5,085,000 in refunding general obligation bonds were issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. These bonds generally are issued as 20-year serial bands with equal amounts of principal maturing each year. General obligation bands currently outstanding are as follows: Interest Purpose rates Amount Governmental activities -improvement 3.00 - 6.50% $ 19,292,938 Governmental activities -refunding 3.00 - 5.50% 18,528,076 Business-type activities -refunding 3.00 - 5.13% 3,536,926 Component units -refunding 3.50 - 4.00% 305,000 Total: $ 41,662,940 75 CITY ~F NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements Annual debt service requirements to maturity for general obligations bonds are as follows: Year Ending Governmental Activities September 30, Principal Interest 2008 4,178,359 1,573,615 2009 3 ,497 , 655 1, 359,744 2010 3,105,000 1,186,918 2011 3,115,000 1,058,843 2012 3,130,000 932,875 2013-2017 12,435,000 3,041,557 2018-2022 6,890,000 964,824 2023-2027 1,470,000 107,285 $ 37,821,014 10,225,661 Business-type Activities Component Units Principal Interest Principal Interest 747,188 128,924 0 11,500 439,738 105,276 0 11,500 460,000 85,407 0 11,500 485,000 64,310 5,000 11,413 210,000 49,688 45,000 10,538 1,040,000 132,773 215,000 28,451 155,000 3,100 40,000 800 0 0 0 0 3,536,926 569,478 305,000 85,702 Certificates of Obligation The City also issues certificates of obligation ("CO's") to finance the acquisition and construction of capital assets including certain capital improvement projects, municipal facilities, and machinery and equipment. In fiscal year 2aa7, the City issued new CO's in the amount of $1,285,aaa. Interest rates on the outstanding CO's range from 3.a0°~ to 5.13°~. Annual debt service requirements to maturity for certificates of obligation of the primary government and component units are as follows: Year Ending Governmental Activities September 30, Principal Interest 2008 1,085,580 339,158 2009 1,030,580 283,355 2010 1,030,580 237,265 2011 1,030,580 190,993 2012 805, 000 149, 223 2013-2017 2,255,000 328,978 2018E-2022 325,000 104,036 2023- 2027 280, 000 29, 875 $ 7,842, 320 1,662, 883 Business-t ype Activities Component Units Principal Interest Principal Interest 461,780 206,728 537,640 421,357 431,780 178,692 537,640 400,001 431,780 161,236 542,640 378,595 426,780 143,782 547,640 356,896 245,000 129,507 505,000 333,340 1,245,000 490,306 2,580,000 1,321,729 1,115,000 237,945 2,655,000 759,836 505,000 44,566 1,850,000 176,544 4,862,120 1,592,762 9,755,560 4,148,298 RP_UP_nllP_ hnn['~~ Activity of the Park and Recreation Facilities Development Corporation is reflected in the financial statements of the City as a blended component unit. The corporation issues sales tax revenue bonds to finance new parks and recreation facilities as well as renovations and updates to existing parks and recreation facilities. Cun-ently, the corporation has $5,41 a,aa0 in revenue bonds outstanding. Interest rates on outstanding sales tax revenue bands range from 4.13°~ to 5.25°.6. Sales tax revenues are accumulated for the repayment of these revenue bands. The debt and associated resources for repayment are included in the City's governmental activities. Revenue bond debt service requirements to maturity are as follows: 76 CITY ~F NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements Year Ending September 3a, 2aa8 2aa9 201 a 2x11 2x12-2x15 Operating lease Governmental Activities Principal Interest 89a,aaa 241,x13 92a,aaa 2a4,3aa 96o,oaa 165,2ao 995,aaa 123,2aa 1,645,aaa 125,751 5,41a,aaa 859,464 Operating lease payments for the golf course are as follows: Year Ending Business-ty pe Activities September 3a, Principal Interest 2aa8 51,335 1x,425 2aa9 44,798 6,669 $ 96,133 17,x94 ~~ CITY ~F NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements Changes in long-term liabilities Long-term liability activity far the year ended September 30, 2007, is reflected in the following tables. Additions include capital appreciation bond principal accretion of $1 a8,~ Bb for 2007. Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: Bonds payable: General obligation bands $ 38,024,485 6,843,165 7,046,636 37,821,014 4,178,359 Certificates of obligation 11,047,899 585,000 3,790,579 7,842,320 1,085,580 Sales tax revenue bonds 6,270,000 - 860,000 5,410,000 890,000 Deferred loss on refunding {517,217) (203,052) (58,352) {661,916 - Premium on bond issues 23,034 53,728 3,140 73,622 - Discount an bond issues 419,497) - {1,345) {18,153 - Arbitrage liability 37,850 128,017 - 165,867 - Compensated absences 2,198,525 241,236 37,747 2,402,014 537,210 Governmental activities long-term liabilities $ 57,065,079 $ 7,648,095 $ 11,678,405 $ 53,034,768 $ 6,691,149 Business-type activities: Bonds payable: Water & sewer obligations $ 950,000 345,000 685,000 610,000 345,000 Deferred loss on refunding {192,866) - {112,629) {80,237 - Premium on bond issues 3,257 - 284 2,973 - Discount on bond issues {675 - {100 {575) - Net W&S obligations 759,716 345,000 572,555 532,161 345,000 Golf course obligations 2,405,289 397,188 770,551 2,031,926 397,188 Deferred loss on refunding (23,537) - {5,617) {17,921 - Premium on bond issues 489 - 42 447 - Discount on bond issues {410 - {63~ {347) - Net golf obligations 2,381,831 397,188 764,914 2,014,105 397,188 Aquatic obligations 900,000 5,000 10,000 895,000 5,000 Deferred loss an refunding {33,500) - {2,913) {30,587 - Premium on bond issues - - - - - Discount on bond issues (2,146 - {187 {1,959) - f~et aquatic obligations 864,354 5,000 6,900 862,454 5,000 Water & sewer certificates 661,348 73,408 146,816 587,940 73,408 Golf course certificates 286,752 38,212 101,424 223,540 63,212 Aquatic park certificates 3,640,804 1,025,160 615,324 4,050,640 325,160 Premium on certificates 421 4,471 121 4,771 - Certificates payable 4,589,325 1,141,251 863,685 4,866,891 461,780 Golf course operating lease 144,948 - 48,815 96,133 51,335 Compensated absences 525,379 80,229 11,358 594,250 191,873 Total business-type long- termliabilities $ 9,265,553 1,968,668 2,268,228 8,965,993 1,452,176 78 CITY ~F NORTH RICHLAND HILLS, TEAS Notes to Basic Financial Statements Beginning Ending Due Vvithin Balance Additions Reductions Balance One Year Component units: Bands payable: General obligation $ 305,000 - - 305,000 - Deferredloss on refunding (8,271) - (719) (7,552) - Discount on bond issues (723) - ~63~ (660 - ~Jet TIF obligations 296,006 - (782) 296,788 - Certificates of obligation 10,288,199 - 532,639 9,755,560 537,640 Premium an certificates 3,048 - 156 2,892 - NetTIF certificates 10,291,247 - 532,795 9,758,452 537,640 Total TIF obligations $ 10,587,253 - 532,013 10,055,241 537,640 The government-wide statement of activities includes $1,208,968 of the long-term liabilities due within one year far business-type activities in "liabilities payable from restricted assets." Bond refunding In April of fiscal year 2007, the City executed a current refunding in the amount of $6,085,000 that refunded certain general obligation bonds and certificates of obligation. The bands and certificates were refunded with a single issue of $6,685,000 General Obligation Refunding and Improvement Bands, Series 2007. The proceeds of the refunding bands provided resources to purchase U. S. government securities that were placed in an irrevocable trust far the purpose of generating resources far all future debt service payments of the refunded debt. As a result, the refunded bands are considered to be defeased and the liability was removed from the City's financial records in fiscal year 2007. The refunding was undertaken to reduce total debt service payments aver the next sixteen years by approximately $208,545 and _ to obtain an economic gain of $151,956. Defeased Debt Outstandi At September 30, 2007, certain outstanding debt of the city is considered to be defeased. The following table details such outstanding defeased debt: Defeased Debt Type of Obligation Outstanding General obligation bonds $ 2,975,000 Certificates of obligation 7,490,000 $ 10,465,000 V. OTHER INFORMATION A. Risk management The government is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. While the City has historically retained a portion of these risks, coverage exists far: general, employment practice, law enforcement, and errors and omissions liability; excess workers' compensation; property damage; commercial crime coverage; and employee life insurance. Premiums are paid into the self- insurance internal service fund by all other participating funds and are available to pay claims, claim reserves, and administrative costs of the program. As of September 30, 2007, the interfund 79 CITY ~F NORTH RICHLAND HILLS, TE~CAS Notes to Basic Financial Statements premiums did not exceed expenses. However, total operating revenues which include dependent premiums did exceed expenses. Liabilities of the fund are reported when it is probable that a loss has occurred and the amount of the lass can be reasonably estimated. Liabilities include an amount for health and dental as well as workers' compensation claims that have been incurred but not reported ("IBNR"}. The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs}, and other economic and social factors. An excess coverage medical insurance policy covers individual claims in excess of $175,000 andlor $4,6fi6,518 in the aggregate fora 12-month period beginning an January 1, 2007. The amount of insurance claim settlements did not exceed the Gity's insurance coverage far the past three fiscal years. Ghanges in the balances of claims liabilities during the past two years are as follows: B. Unpaid claims, beginning of year Incurred claims (including IBNR) Claim expense Unpaid claims, end of year Contingent liabilities 2 d0 7 20 06 $ 1,308,432 $ 1,185,432 5,000,025 5,835,231 (4,845,272) (5,712,231 ) $ 1,372,185 $ 1,308,432 2oa5 $ 1 ,04 5 ,410 5,432,459 (5,292,437) $ 1 ,185,432 The City has participated in a number of State and Federal assistance grant programs. Amounts received ar receivable under these programs are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot be determined at this time, although the Gity expects such amounts, if any, to be immaterial. The Gity is a defendant in four lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City's counsel the resolution of these matters will not have a material adverse effect on the financial condition of the Gity. G Conduit debt obligations The City has issued Health Facilities Development Bonds to provide financial assistance to private-sector entities to promote and develop new, expanded ar improved health facilities to assist the maintenance of public health and welfare. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. The City is not obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of September 30, 2007, there was one issue of Health Facilities Development Bonds outstanding. The aggregate principal amount payable for the issue dated 1994 could not be determined; however, the original issue amount totaled $5,700,000. Additionally, from time to time, the City has issued Industrial Development Bonds to provide financial assistance to private-sector entities far the acquisition and construction of industrial and commercial facilities to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon 80 CITY ~F NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements repayment of the bands, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. The City is not obligated in any manner for repayment of the bonds. Accordingly the bands are not reported as liabilities in the accompanying financial statements. As of September 30, 2007, there were two issues of Industrial Development Bands outstanding. The aggregate principal amount payable for the issues dated ~ 983 and 1985 could not be determined; however, the original issue amounts totaled $7,125,000. D. Other post-employment benefits The City provides postretirement health and dental care benefits for retirees and their dependents. The benefits vary depending upon a retiree's years of service. Retirees fall into three categories: full retirement, early retirement, and combined service retirement. The full retirement retiree pays 100°r6 of the current premiums for health and dental care coverage far themselves and covered dependents. Early retirement and combined service retirement employees pay premiums for health and dental care coverage for themselves and covered dependents at 150°r6 and 175°~, respectively, of the current premium. The Cites regular health and dental care benefit providers underwrite the retirees' policies. Retirees may not convert the benefit into an in-lieu payment to secure coverage under independent plans. As of year end, there were 85 full retirement, 11 early retirement, and 3 combined service retirement retirees receiving pastretirement health and dental care benefits. The City offers its employees a deferred compensation plan (the "Plan"} created in accordance with Internal Revenue Cade Section 457. The Plan is administered by Public Employees Benefit Services Corporation. In 1998, the City implemented the requirements of GASB No. 32, Recounting and Reporting for Intema/Revenue Gode Section 457 Deferred Compensation Plans. In accordance with this statement and tax law, the City has amended its trust agreements which establish that all assets and income of the trust are for the exclusive benefit of eligible employees and their beneficiaries. Due to the implementation of these changes, the City does not have any fiduciary responsibility or administrative duties relating to the deferred compensation plan other than remitting employees' contributions to the trustees. Accordingly, the City has not presented the assets and liabilities of the Plan in these basic financial statements. E. Employee retirement systems and pension plans Plan Description The City provides pension benefits for all of its full-time employees through a nontraditional, joint contributory, hybrid defined benefit plan in the state-wide Texas Municipal Retirement System ("TMRS"}, one of 821 administered by TMRS, an agent multiple-employer public employee retirement system. TMRS issues apublicly-available annual financial report that may be obtained by writing to TMRS, P.O. Box 149153, Austin, Texas 78714-9153. Benefits depend upon the sum of the employees' 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 far service since the plan began are a percent (100°~, 150°~ and 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. An updated service credit is a theoretical amount which, when added to the employee's accumulated contributions and the monetary credits far 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 81 CITY OF NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements salary had always been the average of his salary in the last three years that are ane year before the effective date. At retirement, the benefit is calculated as if the sum of the employee's accumulated contributions 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 5 or mare years of service ar with 20 years of service regardless of age. The plan also provides death and disability benefits. A member is vested after 5 years. 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. Contribution The contribution rate far employees is 7°.6, and the City's matching percent is currently 2 to 1, bath as adapted by the City Council. Under the state law governing TMRS, the actuary annually determines the City contribution rate. The rate consists of the normal cast contribution rate and the prior service contribution rate, bath of which are calculated to be a level percent of payroll fi-am year to year. The normal cast contribution rate finances the currently accruing monetary credits due to the City matching percent, which are the obligation of the City as of an employee's retirement date, not at the time the employee's contributions are made. The normal cost contribution rate is the actuarially determined percent of payroll necessary to satisfy the obligation of the City to each employee at the time his retirement becomes effective. The prior service contribution rate amortizes the unfunded actuarial liability aver the remainder of the plan's 25-year amortization period. When the City periodically adapts updated service credits and increases in annuities in effect, the increased unfunded actuarial liability is to be amortized over a new 25-year period. The unit credit actuarial cost method is used far determining the City contribution rate. Contributions are made monthly by both employees and the City. Since the City needs to knave its contribution rate in advance to budget far it, there is a ane-year delay between the actuarial valuation that is the basis for the rate and the calendar year when the rate goes into effect. The City's contributions to the plan were $3,587,475, $3,391,214, and $3,248,733, for the years ended September 30, 2007, 2006, and 2005, respectively, in accordance with actuarially determined requirements. Contributions by the City were 13.41°~ for the months in calendar year 2007 and 13.20°~ for the months in calendar year 2006. The total covered payroll in the current fiscal year was $26,865,404. The annual actuarial valuation is performed to determine the adequacy of current contribution rates, to describe the current financial condition of the Plan and to analyze changes in the Plan's condition. Significant assumptions used in preparation of that valuation are as follows: Valuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Actuarial assumptions: Investment rate of return Project salary increases December 31, 2006 Unit Credit Level Percent of Payroll 25 years -open period Amortized Cost 7%* None December 31, 2005 Unit Credit Level Percent of Payroll 25 years -open period Amortized Cast 7%* None *includes inflation at 0°/o and cost of living adjustments at 3.5°/0. s2 CITY OF NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements Annual pension cost and percentage of pension cost contributed are as follows: Net Pension Annual Percentage Obligation at Year Ended Pension Cost Contributed Year End September 30, 2007 $ 3,587,475 100°r6 September 30, 2006 3,391,214 100°~ September 30, 2005 3,248,733 100°r6 Operations of Component Units In fiscal year 1998, the City created the Richland Plaza Tax Increment Financing District (TIF #1). The following schedule represents the portion of the Certificates of Obligation, Series 1998 allocated to TIF #1. The anginal issue for the amount allocated to TIF #1 was $850,000. A portion of the outstanding 1998 certificates were refunded in fiscal year 2006 with general obligation bands. The TIF #1 portion of the refunded debt was $295,684 and its portion of the refunding debt was $310,000. All TIF District funds are deposited in TexPool until needed for payments. The repayment terms of the 2005 General Obligation Refunding Bonds and the 1998 Certificates of Obligation are as follows: Year Ending General Obligation Certificates of Obligation September 30, Principal Interest Principal Interest Total 2008 - 11,500 42, 640 7,233 61,373 2009 - 11,500 42, 640 5,127 59,267 2010 - 11,500 42, 640 3,091 57,231 2011 5, 000 11,413 42, 640 1,034 60,087 2012-2016 220, 000 36,587 - - 256,587 2017-2018 80, 000 3,200 - - 83,200 $ 305, 000 85,700 $ 170, 560 16,485 577,745 During the 1999 fiscal year, the City, along with Tarrant County, Tarrant County College and Tarrant County Hospital District created the Town Center Tax Increment Reinvestment Zone (TIF #2}. In 2003, $1,450,000 of Certificates of Obligation, Series 2003 were issued far costs associated with land acquisition and design of the new library to be located within the boundaries of TIF #2. In fiscal year 2006, the City issued $8,750,000 of Certificates of Obligation far construction of the library. All TIF District funds are deposited in TexPool until needed for payments. The repayment terms of the 2006 and 2003 Certificates of Obligation are as follows: Year Ending September 30 2008 2009 2010 2011 2012-2016 2017-2021 2022-2026 Principal Interest Total 495, 000 495, 000 5oo,oao 505, 000 2,565, 000 2,635, 000 2, 390, 000 414,124 394, 874 375, 504 355, 862 1,433, 659 877, ao8 280, 781 909,124 889,874 875,504 860,862 3, 998,659 3, 512,oa8 2, 670,781 $ 9, 585, 000 4,131,812 83 13, 716,812 CITY ~F NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements G. Implementation of GASB Statements Recently implemented The City has adapted the provisions of the Governmental Accounting Standards Board ("GASB") Statements No. 42, "Accounting and Financial Reporting for Impaim7ent of Capita! Assets and for Insurance Recoveries," No. 44, "Economic Condition Reporting: The Statistical Section," No. 4fi "Net Assets Restricted by Enabling Legislation, "and N o. 47 "`Accounting for Termination Benefits" for the year ended September 30, 2007. Future implementation The City has not completed the process of evaluating the impact that will result from adopting GASB Statements No. 45 "Accounting and Financial Reporting by Employers for Postemployment Benefits tither Than Pensions," No. 48 "Sales and Pledges of Receivables and Future Revenues and Intro-Entity Transfers of Assets and Future Revenues," and No. 49 "`Accounting and Financial Reporting for Pollution Remediation (7bligations." Therefore, the City is unable to disclose the impact adopting those statements will have an its financial position and results of operations when such statements are adapted. ****** 84 ~8 N~I1b~W~I~~NI A~Ibf1N~W~~ddf1S ^~~IIf1~3~~1 This page intentionally 1ef~ blank. ~s CITY CF NORTH RICHLAND HILLS, TE7CAS Required Supplementary Information Texas Municipal Retirement System Plan Schedule of Funding Progress Unfunded Valuation Actuarial Actuarial Actuarial Accrued Annual UAAL Dated Value of Accrued Liability Fund Covered as ~'° of C~ecember 31, Assets Liability {UAAL~ Ratio Payroll Payroll 1996 $ 28,677,587 36,673,447 7,995,860 78.209'° 15,6$8,450 50.979'° 1997 33,436,1$0 42,414,782 8,978,602 78.83°rU 15,495,574 57.94°~6 1998 37,098,279 45,495,046 8,396,767 $1.54% 16,626,374 50.509'° 1999 41,272,641 50,371,740 9,099,099 81.94°~ 17,610,468 51.67°k~ 2000 47,123,567 56,704,362 9,580,795 83.10°Y° 19,398,779 49.399'0 2001 53,084,647 63,056,333 9,971,686 $4.199'° 20,841,759 47.849'° 2002 58,119,949 69,337,935 11,217,986 83.82°~6 22,372,019 50.14°,~ 2003 64,726,698 79,113,589 14,386,891 8'1.$19'° 24;485,409 58.769'° 2004 69,410,855 81,993,021 12,582,166 84.65°~ 23,787,759 52.89°~ 2005 72,129,416 80,165,248 14,035,832 83.719'° 24,586,641 57.099'° 2006 75,748,895 90,985,317 15,236,422 83.259'° 25,328,096 60.29'° dote: Most public retirement plans use a funded ratio benchmark of 809'° as an indicator of plan health. Because public plan sponsors (cities) are not subject to corporate takeover or sale and are much less likely to discon tinue operations than private employers, 100°~ funding of the plan results in overpayment since not all current plan participants will retire from the city. The financing objective for each TMRS plan is to finance long-term benefit promises through contributions that remain approximately level from year to year as a percent of the city's payroll. The city's contribution rate consists of the normal cost contribution rate and the prior service contribution rate, both of which are calculated to be a level percent of payroll from year to year. The normal cast contribution rate finances the monetary credits as they accrue, while the prior service contribution rate amortizes the unfunded {or overfunded actuarial liability {assets over a 25-year amortization period. To test haw well the financing objective is being achieved, an actuarial valuation is made each year to determine the city's contribution rate for the calendaryear beginning one year afterthe valuation date. Another important test is made every five years to evaluate the actuarial assumptions used to calculate eac h ciry's contribution rate. If the contributions to each plan are level in concept and soundly executed, each plan will pay all promised benefits when duo--the ultimate test of financial soundness. Testing for level contribution rates is the long-term test. Additional information about the City's plan and contributions can be found on pages 69-70 in the Hates to the Basic Financial Statements. For Calendar Year 2007 2006 2005 2004 2003 City's annual contribution stated as a percentage of covered payroll 13.63°h, 13.209'° 13.429'° 12.81 °~ 12.559'° dote Source: TMRS Comprehensive Annual Report for the Year Ending December 31, 2006, Actuarial Section and City records. 87 CITY CF NORTH RICHLAND HILLS, TEXAS Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balance -Budget and Actual General Fund Year Ended September 30, 2007 Variance with Final Budget- Original Final positive Budget Budget Actual (negative } Revenues: Taxes: Property taxes $ 11,776,886 11,776,8$6 1 1,765,015 (11,871 } Penalties and interest on delinquent taxes 110,000 125,000 148,051 23,051 City sales taxes 7,799,447 8,335,519 8,568,080 232,561 Mixed beverage taxes 110,000 125,000 129,860 4,860 Franchise taxes 4,315,745 4,297,461 4,450,441 152,980 Total taxes 24,112,078 24,659,866 25,061,447 401,581 Licenses and permits: Building inspection 750,000 750,000 789,607 39,6Q7 Paving inspection 60,000 20,000 14,207 (5,793} Electrical and plumbing inspection 150,000 140,000 144,762 4,762 other 517,050 516,550 578,060 61,510 Total licenses and permits 1,477,050 1,426,550 1,526,636 100,086 Charges for services: Administration fees 3,080,460 3,080,460 3,080,460 - Planning and Zoning fees 32,000 34,000 36,325 2,325 Recreational activity fees 520,300 548,421 573,018 24,597 Ambulance fees 1,262,680 1,249,985 1,280,842 30,857 Auto impoundment fees 15,000 15,000 14,466 (534} Other fees 208,200 222,900 217,926 X4,974} Total charges for services 5,118,640 5,150,766 5,203,037 52,271 Fines: Municipal Court 1,6$0,500 1,746,496 1,720,312 (26,184} Warrant and arrest fees 270,000 280,000 262,01 1 (17,989} Library 64,000 75,Q00 81,864 6,864 Total fines 2,014,500 2,101 ,496 2,064,187 (37,309} Intergovernmental revenue 180,047 194,552 175,015 (19,537} Investment income 480,000 593,500 800,412 206,912 Miscellaneous 211,691 180,221 235,372 55,151 Total revenues 33,594,006 34,306,951 35,066,106 759,155 The budget is refloated an a GAAP basis. (continued} 88 CITY GF NGRTH RICHLAND HILLS, TEXAS Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balance -Budget and Actual General Fund Year Ended September 30, 2007 Expenditures: General government: Legal (City Attorney) Legislative City Council) Administration (City Manager Public information (City Secretary Judicial (Municipal Court) Finance Nondepartmental Human resources Building maintenance Planning and inspections f'~Jeighbort~ood services Budget and research Public relations Total general government Public safety: Police Fire Total public safety Culture and recreation: Parks, recreation, and library Public works: Administration, traffic control and street repair and maintenance Total expenditures Excess (deficiency of revenues over expenditures Other financing sources (uses): Payments in lieu of taxes Transfers in Transfers out Total other financing sources (uses) -net Jet change in fund balance Fund balance -beginning of year Fund balance -end of year The budget is reflected an a GAAP basis. Variance with Final Budget- Original Final positive Budget Budget Actual (negative} 529,132 320,000 216,937 103,063 135,252 1 12,832 97,703 15,129 521 ,123 544,508 544,508 - 455,137 460,778 414,502 46,276 1,056,030 1,083,827 1,039,861 43,966 787,291 779,550 716,064 63,486 1,702,625 1 ,219,247 1,318,142 (98,895) 117,189 117,930 128,885 (10,955) 460,656 460,656 460,656 - 975,924 986,645 919,240 67,405 1,530,900 1,653,626 1,292,467 361,159 343,573 344,708 323,183 21,525 476,200 579,787 454,515 125,272 9,091,032 8,664,094 7,926,663 737,431 9,263,427 9,654,211 9,533,256 120,955 8,393,570 8,778,311 8,617,141 161,170 17,656,997 18,432,522 18,150,397 282,125 4,151,428 4,237,284 3,965,685 271,599 2,701,579 2,740,847 2,472,808 268,039 33,601,036 34,074,747 32,515,553 1,559,194 (7,030 232,2x4 2,550,553 2,318,349 360,000 423,750 357,847 X65,903) 532,000 532,700 438,670 (94,030} (968,800) (1,789,680) (2,453,099 (663,419) (76,800) (833,230) (1,656,582} (823,352 $ (83,830) (601,026) 893,971 1,494,997 13,421,393 $ 14,315,364 89 CITY ~F Nl7RTH RICHLAND HILLS, TEXAS Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Crime Control and Prevention District Year Ended September 30, 2007 Revenues: Sales tax revenue Investment income Intergovernmental revenue Miscellaneous Total revenues Expenditures: Public safety Deficiency of revenues over expenditures ether financing sources and uses: Transfers in Transfers out Total other financing sources an d u ses {net} Net change in fund balance Fund balance - beginning ofyear Fund balance - end of year The budget is reflected on a GAAP basis. Variance with Final Budget- Criginal Final positive Budget Budget Actual (negative} $ 3, 746, 758 3, 904, 897 4, a 13,162 108, 265 94, 000 94, 000 87,156 {6, 844} 3, 840, 75 8 3, 99 8, 8 97 4,100, 318 101, 421 4,623,240 4,651,195 4,504,420 146,775 {782,482} {652,298} {404,102} 248,196 - - 20a, 000 2aa, aaa {25, Ooo} {25, aa0} {85, aaa} {60, 000} {25, 000} {25, 000} 115, 000 140, 000 $ {807, 482} {677, 298} {289,102} 388,196 1, 932, 202 $ 1, 643,100 9d NCN-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Promotional Fund - to account far the operations and expenditures far which hotellmotel occupancy taxes are used. Occupancy tax revenues are used primarily to attract tourists and new businesses to the City. Donations Fund - to account far the operations far which voluntary contributions by citizens are used. Contributions are used primarily to support library activities, animal control, and special events/public art. Special Investigation Fund - to account far the accumulation and use of resources from the forfeiture of contraband and certain other specialized police activities. Drainage Utility Fund - to account for the establishment of drainage facilities within the municipal boundaries of the City and the subsequent billing and collection of fees so established. Grant Fund - to account for certain grant programs of the City. Economic Development Fund - to account far the accumulation and expenditure of resources designed to stimulate the local economy, development, and redevelopment. Traffic Safety Fund - to account for sources that will assist in various traffic safety areas. Gas Drilling and Exploration Fund - to accou nt for the accumulation and expenditure of resources from gas drilling and exploration an City-awned property. DEBT SERVICE FUND Sales Tax Revenue Debt Service Fund - to accumulate monies for the payment of interest and principal on sales tax revenue bands. Financing is provided by sales tax revenue. CAPITAL PROJECTS FUNDS Drainage 1994 Election - to account for financial resources to be used for the acquisition or construction of major drainage capital assets. Financing is provided primarily by the sale of general obligation bonds as authorized by the voters in the 1994 Bond Election. Public Safety 1994 Election - to account for financial resources to be used for the acquisition ar construction of major public safety capital assets. Financing is provided primarily by the sale of general obligation bands as authorized by the voters in the 1994 Bond Election. Permanent Street hllaintenance - to account for financial resources to be used for the maintenance _ of city streets. Financing is provided primarily by transfers from the General Fund. Sidewalk hriaintenance - to account for the financial resources to be used for the maintenance of city sidewalks. Financing is provided primarily by transfers from the General Fund. Streets 2003 Election - to account for financial resources to be used far the acquisition or construction of street capital assets. Financing is provided primarily by the sale of general obligation bonds as authorized by the voters in the 2003 Bond Election. Drainage 2003 Election - to account for financial resources to be used for the acquisition or construction of ma~ar drainage capital assets. Financing is provided primarily by the sale of general obligation bonds as authorized by the voters in the 2003 Bond Election. Public Safety 2003 Election - to account for financial resources to be used far the acquisition ar construction of major public safety capital assets. 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C N ~y ~` w fdl r O N fJ) ~ Vl 7 (!I C ~ Q7 d 7 C ca v= ~ ~ ~ Cfi iS N w > ~' U7 A ~' fY5 O ~ U7 ~ °O d ll1 ~~ f6 Q1 ~ 41 C n N C d .L. l6 .C OY 'a ff) ~ ~ ~ ~ ~' N Q O a j C ~ ~ }' ~ ` w ~ d 7 N C N 1 d ~ ~ N fCf d 7 CD d ~-~ N fD 07 41 Q ~ ~ N N ~ ~ Ci d ~ C ~ ~ C d N f6 67 Ul CY7 Cfl ffJ " C N ` 41 m ~° g E o dr m m _ 7 °- '~ ty ~ m a~ n~ ~D c ~ ~ y c v e.s a ` ' ~ a N ~ ~ a`~ ~`-' ~ .s, a ca ~ a~ a~ ~a x a c rl ~ s :~ i] t] us _ ~ a LLJ c d 7 ~~ 'a ~ 7~ a~ I- C ~ t,1 C C ~ ~ v a`i a`r ° cu ~ ~ 4i c 'I"rr ~ ~ '~ ~ is "_ ~, ~ c c o Z s1 ~ a `s a .vr h- ~ ,_, d n a ~c3ca ~ ~ao~~ a~ ~ C7 CL CJ CL ~ lZ ~ y ~ ~ Xc~ c~ o a`~ a rn ~ ~ f- a a to ~'f-~ _~ ~ w o ~' ,~ 9~ CITY ~F NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Promotional Fund Year Ended September 30, 2007 Revenues: occupancy tax revenue Investment income Miscellaneous income Total revenues Expenditures: Culture and recreation Total expenditures Net change in fund balance Fund balance - beginning of year Fund balance - end of year The budget is reflected on a GAAP basis. Variance with Final Bu dget- 4rigin al Final positive Budget Budget Actual (negative} $ 174, 900 230, 000 284, 099 54, 099 5, 215 5, 920 10,427 4, 607 50 50 - {50) 180,165 235, 970 294, 626 58, 556 216, 262 216, 814 196, 934 20, 880 216, 262 216, 814 195, 934 20, 880 $ (36, 097} 19,166 98, 592 79,436 189,x21 $ 288,213 96 CITY ~F NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance -Budget and Actual Donations Fund Year Ended September 30, 2007 c:ontrinution s Investment income Miscellaneous income Total revenues Expenditures: General government Culture and recreation Total expenditures Excess revenues over expenditures Net change in fund balance Fund balance - beginning of year Fund balance - end ofyear The budget is reflected on a GAAP basis. Variance with Final Budget- Griginal Final positive Budget Budget Actual (negative} $ 170, 500 176, 250 ~ 70, 326 (5, 924} 18,425 21,650 30,122 8,472 57, 500 11, 550 3, 219 (8, 331) 246,425 209,450 203,667 (5,783) 80,867 55,867 23,437 32,430 85, 750 94,105 88, 295 5, 810 166, 617 149, 972 111, 732 38, 240 79,808 59,478 91,935 32,457 $ 79,808 59,478 91,935 32,457 472, 209 $ 564,144 97 CITY QF NQRTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance -Budget and Actual Drainage Utility Fund Year Ended September 30, 2007 uramage fees Investment income Total revenues Expenditures: General government Excess of revenues over expenditures Other financing sources (uses Transfers out Net change in fund balance Fund balance -beginning of year Fund balance -end of year The budget is reflected on a GAAP basis. Variance with Final Budget- ariginal Final positive Budget Budget Actual (negative) $ 795,000 806,450 819,370 12,920 10,215 15,295 22,450 7,155 805,215 821,745 841,820 20,075 - - 1,771 (1,771) 805,215 821,745 840,049 18,304 (707,186) (707,186) (707,186) - $ 98,029 114,559 132,863 18,304 442,755 $ 575,618 98 CITY GF N4RTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance -Budget and Actual General Debt Service Fund Year Ended September 30, 2007 Variance with Final Budget- ~riginal Final positive Budget Budget Actual (negative) Revenues: Property tax revenue $ 6,750,417 6,750,417 6,750,417 - Investment income 50,000 92,951 146,223 53,272 Intergovernmental revenue 19,785 19,785 19,785 - Total revenues 6,820,202 6,863,153 6,916,425 53,272 Expenditures: Debt service: Retirement of general long-term debt 5,928,018 5,928,018 5,837,217 90,801 Interest and fiscal agent charges 1,993,193 1,988,311 2,003,847 (15,536) Total expenditures 7,921,211 7,916,329 7,841,064 75,265 Deficiency of revenues over expenditures (1,101,009) (1,053,176) (924,639) 128,537 ether financing sources: Issuance of refunding bonds - - 5,085,000 5,085,000 Payment to escrow agent - - (5,075,787) 5,075,787 Transfers in 1,210,234 1,210,234 1,210,235 1 Total other financing sources (uses) -net 1,210,234 1,210,234 1,219,448 10,160,788 Net change in fund balance $ 109,225 157,058 294,809 137,751 Fund balance -beginning of year 2,088,332 Fund balance -end of year $ 2,383,141 The budget is reflected on a GAAP basis. 99 CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance -Budget and Actual Sales Tax Revenue Debt Service Fund Year Ended September 30, 2007 Expenditures: Retirement of general long-term debt Interest and fiscal agent charges Total expenditures Deficiency of revenues over expenditures ether financing sources: Transfers in Net change in fund balance Fund balance - beginning of year Fund balance - end of year The budget is reflected on a GAAP basis. Variance with Final Budget- Original Final positive Budget Budget Actual (negative} $ 860, 000 860, 000 860, 000 - 278, 083 278, 083 278, 083 - 1,138,083 1,138,083 1,138,083 - (1,138,083} (1,138,083} (1,138,083} - 1,138,083 1,138,083 1,138, 083 - $ - - 874, 424 $ 874, 424 100 INTERNAL SERVICE FUNDS Building Support Services Fund - To account for building maintenance and repair services provided to numerous departments located at various sites throughout the city. Building Support Services Fund operations are financed by charges to user departments. Equipment Support Services Fund - Ta account for the maintenance, repair service, and replacement of vehicles and equipment provided to numerous departments responsible for the operation of city vehicles and equipment. Equipment Support Services Fund operations are financed by charges to user departments. Self-Insurance Fund - To account far the payment of substantially all claims except for fire insurance coverage and employee life insurance coverage. Self-Insurance Fund operations are financed by charges to user departments and employee contributions. Information Services Fund - To account far the acquisition, maintenance, and support of computer and telephone hardware and software. Information Services Fund operations are financed by charges to user departments. 101 CITY ~F NORTH RICHLAND HILLS, TE~CAS Combining Statement of Net Assets Internal Service Funds September 30, 2007 Building Equipment Support Support Services Services Assets Current assets: Deposits and investments $ 286,646 141,562 Insurance deposits - - Accounts receivable, other - - Interest receivable 18,485 19,656 Inventories, at cost 6,339 96,603 Restricted assets: Construction funds -deposits and investments 276,104 - Future improvements -deposits and investments 1,234,350 2,212,327 Insurance recovery funds -deposits and investments 967,284 249,856 Reserve for future claims -deposits and investments - - Total current assets 2,789,208 2,720,004 Noncurrent assets: Capital assets, at cost: Building and improvements Machinery and equipment Total capital assets being depreciated, at cost Less: accumulated depreciation Net capital assets being depreciated Construction in progress Total noncurrent assets Total assets Current liabilities: Liabilities Hccounts payable Accrued liabilities Contracts and retainage payable Total current liabilities Invested in capital assets Unrestricted Total net assets The notes to the financial statements are an integral part ofthis statement. Net Assets 272, 293 - 145,200 5,078,687 417,493 5, 078, 687 ~ 142, 629} ~3, 618, 578) 274, 864 1,460,109 244, 651 - 519, 515 1,460,109 ~ ~nQ ~~~ ~ ~ sin a ~ ~ 232,821 52,842 53,825 88,722 LVV,V~FV IMF I,JV'~F 519, 515 2,502,563 1,460,109 2,578,440 $ 3,022,078 4,038,549 102 Total Self Information Internal IM f"~1 IY'~1 M1AA. CA.K JIAA./~ CAN/IAA. 129,137 144,257 701, 602 9o,oao - 9o,aoo 5,842 4,326 10,167 34,100 20,531 92,773 - - 102,942 - 529,194 805, 298 - 2,249,325 5,696,002 - - 1, 217,140 3,389,274 - 3,389,274 3,648,353 2,947,633 12,105,198 - - 272, 293 17,312 1,842,634 7,083,833 17,312 1,842,634 7,356,126 X17,312) (1,062,882) (4,841,401) - 779,752 2,514,725 - 769,079 1,013,730 - 1,548,831 3,528,455 129,137 84,958 499,758 1,395,844 59,299 1,597,690 - 1,548,831 3,528,455 2,123,372 2,803,376 10,007,751 2,123,372 4,352,207 13,536,206 103 CITY CF NORTH RICHLAND HILLS, TEXAS Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets Internal Service Funds Year Ended September 30, 2007 Building Equipment Support Support Self Operating revenues: Insurance premiums Maintenance services Computer services Telephone services Other Total operating revenues Operating expenses: Claims Contractual services Personal services Repairs and maintenance Supplies Administration fees Depreciation Total operating expenses Operating income {loss} Non operating revenues {expenses, Investment income Insurance recovery proceeds Other income {expense} Gainl{loss} on disposal of assets Total nonoperating revenues {expenses} -net Income {loss) before transfers Transfers: Transfers in Transfers out Total transfers- net Change in Net Assets Net assets - beginning of year Net assets - end of year $ - - 7, 527, 908 ~ ,456, 561 2, 054, 900 - 1,456, 561 2, 054, 900 7, 527, 908 4, 945, 272 651,601 79,839 - 713, 559 797, 322 581, 244 285, 330 238, 092 - 52, 835 663, 465 12,193 - - 634, 093 {269,190} {81,847} 1,355,106 99, 571 117, 768 148, 399 967, 284 249, 856 - - 25,174 - - 43,799 - 1, 066, 855 436, 597 148, 399 797, 665 354, 750 1, 503, 505 200, 000 125, 000 146, 400 (40,704} {270,427} {50,000} 159,296 {145,427} 96,400 956, 961 209, 323 1, 599, 905 2, 065,117 3, 829, 226 523, 467 $ 3, 022, 078 4, 038, 549 2,123, 372 The notes to the financial statements are an integral part of this statement. 1014 Total Information Internal - 7,527,9a8 - 3,511,461 1,780,878 1,780,878 362,181 362,181 a .,~ ~~~ a ~~ ~~~ 4, 945, 272 186, 830 918, 270 870,401 2, 962, 526 701,186 1,224,608 32, 368 760, 861 - a~~ ~~~ 634, 093 ~a~ o.~o 1, 926,158 11, 961,458 343, 537 1, 347, 606 132,593 498,331 - 1, 217,140 - 25,174 2,168 45, 967 134,761 1,786,612 478, 298 3,134, 218 485,400 956, 800 - (361,131} 485,400 595, 669 963, 698 3, 729, 887 3,388,509 9,806,319 4, 352, 207 13, 536, 206 1 d5 CITY OF NORTH RICHLAND HILLS, TEXAS Combining Statements of Cash Flaws Internal Service Funds Year Ended September 30, 2007 Building Support Services Cash flows from operating activities: Receipts from interFund services provided 1,456,561 Payments to suppliers (784,968} Payments to employees (545,521 } Payments for internal services (192,402} Net cash provided by (used for) operating activities (66,330} Cash flows from noncapital financing activities: Transfers from other funds 200,000 Transfers to other funds (40,704} Net cash provided by (used far} noncapital and related financing activities 159,296 Cash flows from capital and related financing activities: Insurance recovery proceeds 967,283 Grant proceeds - Acquisition and construction of capital assets (244,651) Proceeds from sale of capital assets - Netcash provided by (used far} capital and related financing activities 722,632 Cash flows from investing activities: Interest and dividends received 94,531 Net cash provided by investing activities 94,531 Net increase (decrease} in cash and cash equivalents 910,128 Cash and cash equivalent beginning of year 1,854,256 Cash and cash equivalent end of year $ 2,764,384 Reconciliation of operating income (loss) to net cash provided by (used ford operating activities: Operating income (loss) $ (269,190) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation expense 22,426 (Increase) decrease in accounts receivable 90 (Increase} decrease in inventories 2,964 Increase (decrease} in accounts payable 170,217 Increase (decrease) in accrued liabilities 7,163 Total adjustments 202,860 Net cash provided by (used for) operating activities $ (66,330) The Hates to the financial statements are an integral part of this statement. 106 Equipment Support Information Services Self Insurance Services Totals 2,054,900 7,772,066 2,269,695 13,553,222 (925,996} (4,833,789} (858,370} (7,403,123) (858,857} (581,244} (728,415) (2,514,037) (187,495} (634,093} (141,986) (1,155,976) 282,552 1,722,940 540,924 2,480,086 125,000 146,400 485,400 956,800 (270,428} (50,000} - (361,132} (145,428} 96,400 485,400 595,668 249,856 - - 1,217,139 25,174 - - 25,174 (308,358} - (726,104} (1,279,113) 50,806 - 2,168 52,974 17,478 - (723,936} 16,174 112,857 128,897 128,968 465,253 112,857 128,897 128,968 465,253 267,459 1,948,237 431,356 3,557,180 2,336,286 1,570,174 2,491,420 8,252,136 2,603,745 3,518,411 2,922,776 11,809,316 (81,847) 1,355,106 343,537 1,347,606 358,029 - 135,373 515,828 - 244,158 (4,286} 239,962 (10,536} - - (7,572} 13,955 59,923 60,693 304,788 2,951 63,753 5,607 79,474 364,399 367,834 197,387 1,132,480 282,552 1,722,940 540,924 2,480,086 107 N ~~H This page intentiona!!y lei b/ank. 1 d8 DISCREETLY PRESENTED COMPONENT UNITS 109 N ~~H 7~iis page intentionally left blank. 110 CITY ~F NORTH RICHLAND HILLS, TEXAS Combining Statement of Net Assets Nonmajor Discretely Presented Camponent Units September 30, 2007 TI F #1 TI F #2 Totals Assets Current assets: Deposits and investments Property taxes receivable Restricted assets: Construction fiands -deposits and investments Total current assets Noncurrent assets: Capital assets, at cost: Construction in progress tither assets Total noncurrent assets Total assets $ 73 ~ , 804 5, 331, 048 6, 062, 852 - 53, 275 53, 275 - 5, 467, 918 5,467, 918 731, 804 10, 852, 241 11, 584,045 - 6, 370,185 6, 370,185 - 78,239 78,239 - 6,448,424 6,448, 424 731, 804 17, 300, 665 18, 032,469 Liabilities Current liabilities: Accounts payable Accrued interest payable Current portion of bonded indebtedness Total current liabilities Long-term liabilities: General obligation bonds {net of current portion an d I oss of $8, 220 } Certificates of obligation Total long-term liabilities Total liabilities Net Assets - 1,047,015 1,047,015 2,478 50, 337 52, 815 42, 640 495, 000 537, 640 45,118 1, 592, 352 1, 637, 470 296, 787 - 296, 787 127, 919 9, 092,892 9,220, 811 424, 706 9, 092, 892 9, 517, 598 469, 824 10, 685, 244 11,155, 068 Net assets: Invested in capital assets, net of related debt - Restricted for debt service 261,980 - 261,980 Unrestricted - 6, 615,421 6,615,421 Total net assets {liabilities} $ 261,980 6,615,421 6,877,401 The notes to the financial statements are an integral part of this statement. 111 CITY ~F NORTH RICHLAND HILLS, TEXAS Combining Statement of Activities Nonmajor Discretely Presented Component Units Year Ended September 30, 2007 Net (Expense} Revenue and Changes in Net Assets Expenses TIF #1 TIF #~ Totals TIF #1 $ 21,427 (21,427} - (21,427} TIF #2 495,494 - (495,494} (495,494} Total component unit activities 516,921 (21,427} (495,494} (516,921 } General revenues: Property tax 216,838 1,754,874 1,971,712 Interest 30,185 674,209 704,394 Total general revenues 247,023 2,429,083 2,676,106 Change in Net Assets 225,596 1,933,589 2,159,185 Net assets -beginning of year 36,384 4,681,832 4,718,216 Net assets - end of year $ 261,980 6,615,421 6,877,401 The notes to the financial statements a re an integral part of this statement. 112 STATISTICAL ~ECTI~N 113 This page intentionally 1ef~ blank. 114 GovemmerRal Act~v~ties Invested in capital assets net of related debt $ Restricted Unrestricted Total net assets business-type Activities Invested in capital assets net of related debt Restricted Unrestricted Total net assets Primary GovernmenP Invested in capital assets net of related debt Restric~d U nrestric~d Total net assets CITY OF NORTH RICHLAND HILLS, TEXAS Table 1 filet assets by Component (unaudited) Fiscal Year 2007 2006 2005 2004 2003 128,290,273 127,692,821 70,181,539 63,351,627 58,568,310 3,270,409 2,973,821 2,759,099 2,954,135 2,658,468 44,787,548 36,986,785 27,839,936 27,644,041 27,303,419 176,348,230 167,653,427 100,780,574 93,950,003 66,730,197 65,485,796 62,776,005 63,610,252 65,122,142 64,023,232 2,937,027 2,712,360 2,267,668 1,241,081 2,450,610 24,779,076 27,457,208 22,623,641 20,443,728 19,036,895 93,201,699 92,945,573 86,501,761 86,606,951 85,510,737 193,776,069 190,466,826 133,791,791 128,473,969 122,591,542 6,207,436 5,666,161 5,026,767 4,195,216 5,309,078 69,566,624 64,443,993 50,463,777 48,067,769 46,340,314 269,550,129 260,599,000 189,282,335 180,756,954 174,240,934 ~lo~s: Fiscal year 2003 was the implementation year of GASB #34 for the City. Figures from fiscal years prior to 2003 are unavailable for inclusion in the tables. Right-of-way land was added to the financial statements in fiscal year 2006. 115 CITY CF NORTH RICHLAND HILLS, TEXAS Table 2 Changes in Net Assets (unaudited) Fiscal Year 2007 2006 2005 2004 2003 Expenses Governmental activities: General government $ 8,461,142 9,269,861 8,288,137 9,755,719 9,292,156 Public safety 23,265,259 22,022,696 20,693,721 20,460,665 21,078,401 Culture and recreation 7,327,532 7,611,710 7,355,182 7,436,113 7,102,491 Publicw©rks 7,799,706 8,169,282 7,597,475 6,755,207 6,917,896 Interest and other fees 2,561,837 2,546,791 2,860,149 3,157,963 3,853,040 Total governmental activities 49,415,476 49,620,340 46,794,664 47,565,667 48,243,984 Business-type activities: Water and sewer 23,154,259 22,929,665 21 ,492,504 20,707,959 20,415,859 Golf course 2,247,272 2,239,404 2,254,198 2,257,534 2,353,454 aquatic park 3,433,492 3,343,073 3,251,524 3,178,835 3,121,298 Total business-type activities 28,835,023 28,512,142 26,998,226 26,144,328 25,890,611 Total primary government 78,250,499 78,132,482 73,792,890 73,709,995 74,134,595 Program Revenues Governmental activities: Charges for services General government 6,505,029 6,881,843 5,672,569 5,548,912 5,221,263 Public safety 1 ,718,460 1,314,329 1,154,807 1,031,326 1,062,295 Culture and recreation 1 ,124,777 1,212,343 1,214,590 1,091,618 1,363,337 Public works 1 ,179,302 174,166 61,063 100,192 475,788 Operating grants and contributions 1 ,028,853 1,153,543 1,539,736 612,519 865,108 Capital grants and contributions 410,297 2,910,568 4,367,529 6,404,966 2,087,935 Total governmental activities 11 ,966,718 13,646,792 14,010,294 14,789,533 11,075,726 Business-type activities: Charges for services Water and sewer 21 ,630,336 25,858,511 22,237,742 20,861,262 20,945,508 Golf course 2,298,065 1,775,963 2,287,494 2,154,714 2,356,941 Aquatic park 3,916,691 3,894,274 3,421,301 2,831,743 2,892,843 Operating grants and contributions - 66,466 46,847 344,296 64,334 Capital grants and contributions 599,983 1,288,734 1,603,834 2,128,214 1,303,870 Total business-type activities 28,445,075 32,883,948 29,597,218 28,320,229 27,563,496 Total primary government 40,411,793 46,530,740 43,607,512 43,109,762 38,639,222 Net (Expense) Revenue Governmental activities (37,448,758 (35,973,548 (32,784,370) (32,776,134) (37,168,258) Business-type activities (389,948) 4,371,806 2,598,992 2,175,901 1,672,885 Total primary government (37,838,706) (31,601,742 (30,185,378 (30,600,233) (35,495,373) 116 CITY QF NORTH RICHLAND HILLS, TEXAS Changes in Net Assets (unaudited General Revenues and Cther Changes in Net Assets Governmental activities: Taxes Property taxes Sales taxes Mixed beverage taxes Franchise taxes Occupancy taxes Unrestricted investment earnings Special items Miscellaneous Transfers Total governmental activities Business-type activities: Unrestricted investment earnings Special items Transfers Total business-type activities Total primary government Changes in Net Assets Governmental activities Business-type activities Total primary government Table 2 Fiscal Year 2007 2006 2005 2004 2003 18,663,482 18,134,230 17,458,279 16,871,892 16,203,986 16,865,282 15,934,374 15,230,354 16,477,474 15,925,727 129,86a 123,355 115,143 107,164 114,122 4,450,441 3,855,169 3,541,130 3,592,682 3,684,706 284,x99 199,$50 191,84$ 172,197 195,408 2,757,208 2,047,583 1,0$8,547 652,153 996,235 1,499,140 - - ~1,585,000~ (1,560,898) 651,376 2,341,327 688,555 602,568 682,272 712,782 873,867 1,301,085 1,104,810 1,444,569 46,013,670 43,509,755 39,614,941 37,995,940 37,686,127 1 ,330,781 945,873 396,9x3 225,123 260,056 - - - - (679,966) (712,782) (873,867) (1,301,085 (1,104,810) (1,444,569) 617,999 72,006 (904,182 (879,687) (1,864,479) 46,631,669 43,581,761 38,710,759 37,116,253 35,821,648 8,564,912 7,536,207 6,830,571 5,219,806 517,869 228,051 4,443,812 1,694,810 1,296,214 (191,594) 8,792,963 11,980,019 8,525,3$1 6,516,020 326,275 Notes: Fiscal year 2003 vYras the implementation year of GASB #34 for th e City. Figures from fiscal years prior to 2003 are unavailable for inclusion in the tables. 117 ~ r rn ca o m v r ~ rN- rn ~ ~ ~ cav ~ (~D C~4 CrV I ~ cl N CO ~ ~ fD O"~ (D a r rn r r' V lf7 Q7 N P7 ~f7 CV ao ,- rn ~ a tra oa cv cfl cr n c*7 rn rn as cv r- cv cW co m -- c~i v chi tci n m N m o° ~ m v v ~ cv r m ~ rn r cv r o r ao o rn ~ in rn m ~t m o v a~ c*7 ~r v ra cn C o ti m cri o cv m g a°JO v m ~ ~ N o N r m rn ao ct m ~n cW m rn r un cv_ ~ ~ r~ V tri r rn g N LL7 CO v v a 6"1 C'r N lC] a f'~ N CO 07 a r r ~ .- ~ Cr7 ~, ~ ~ ~ r r ~ ~' S ~ T f11 p V N 07 r O ~-- a o lC) m N C 7 r rn a a ,~ ~ ~ ~ ~ W W ~ F- ~ fJ1 LL J~ J r o r rn o cv .- ~ _ ~ ~ co uy ao c_o cti m cti m co cv m N m c7 O~ ~ g o m m ct a ~ rn ° a 2 ~ ~ ~ v o ~ c c~ ~ r_ ~ g~~~ y ~o ~, ~ r N C'7 ~ _ ~ ~ U_ ~ ~ ~ ~ _ ~ ,~ ~~ o 0 0 ~ ~ I m J O co a ~ a ~ v Z ~] ~ cv r rn o _ ter r W ~ $ ~ o N ~ V ~I 0 3 N a s ~ ~ } (L ~ ,~ ~ F U o rn rn ~ n a rn m r _ rn ~ c7 r~ c~i ri csi ~; v ~r rn u~ cs~ ~ cv_ ~ o_ oa N cv m cs7 c~ rv a~ m rn ,. o I I rn ~ ti m ~ o °r° ~ ~ Qr) N N h ~ CmD p tt7 m ct cV r a N N C'7 C*] N V 0.7 LV II r r . V ~7 I I O l[7 CO ~ o m ~ r~ CO LO u~ m ~~~ s ~ ~ m r`~ ~ ~ ra v cv ~ o .- c~ m ~ ~ ~ ~ ~ ~ m ~ a ~ c c ~ '~ ~ ~ OJ ~ N ~ ~ i ~--. ~ Q ~ ,~ +--~ QJ ~ L ~ Q~ Q~ +~ Q a ~ ~~ (y C ~ _ W~y O O C ~ > ~ L Q ~ L L ,~ ~ ~ ~ j N ~ ~ N ~ Q ~ ~ ~ H a ~ ~ Ul ^ U at ~ ~ -_ Y ~ (.~ Q 11$ l~I ~H This page intentionally lets blank. 119 CITY OF NORTH RICHLAND HILLS, TEXAS Table 4 Changes in Fund Balances- Governmental Funds Last Ten F fis cal Years Fiscal Year 2007 2006 2005 2004 Revenues Taxes ~ 4x,393,165 39,296,101 37,565,652 38,099,241 Licenses and permits 1,526,636 2,251, 292 1, 473, 542 1, 421,831 Charges far services 5,203,037 5,237,388 5,109,802 4,849,344 Fines 2,064,187 2,13x, 968 1, 787, 547 1, 775,899 Contributions 17x,326 177,273 178,937 176,962 Special assessments 28,225 8,348 514 - Investment income 2,258,877 1,719,493 922,870 569,532 Intergovernmental 1,267,839 1,73x,684 1,792,392 3,139,929 Drainage fees 819,370 806,414 795,475 793,415 Tennis center 312,697 310,397 28x,505 289,375 Forfeitures 74,448 86,752 70,117 47,x68 Miscellaneous 939,241 1,431,192 1,070,874 46x,77x Total revenues 55,058,048 55,186,3x2 51,048,227 51,623,366 Expenditures General government 8,607,293 9,329,442 8,553,540 8,968,934 Public safety 23,414,877 22,x49,69x 21,289,538 20,618,988 Culture and recreation 6,684,263 6,431,291 6,331,728 6,266,762 Public works 2,522,751 2,468,819 2,536,838 2,278,247 Capital outlay 3,742,378 4,909,1x1 9,404,434 12,577,507 Debt service Principal 6,697,217 6,462,905 6,695,455 6,278,x05 Interest 2,281,930 2,349,160 2,665,828 2,770,875 Total expenditures 53,950,709 54,Oaa,408 57,477,361 59,759,318 Excess of revenues aver (under) expenditures 1,107,339 1,185,894 (6,429,134} (8,135,952) Other F financing Sources (Uses) Proceedsfrom borrowing 2,185,000 3,625,Oxx - 4,935,000 Proceedsfrom refunding 5,085,000 8,245,x00 - 3,815,a0a Payments to escrow agent (5,075,787} (8,100,166) - (3,694,386} Insurance recovery proceeds 282,a0a - - - Proceedsfram sale of assets 9,864 - - - Transfersin 5,812,148 4,436,8aa 3,749,968 4,442,310 Transfers out (5,990,349} (5,710,150) (3,794,426) (4,858,894} tVet component unit transfers - - - - Total other financing sources (uses} 2,3x7,876 2,496,484 (44,458} 4,639,030 tWet change in fund balances 3,415,215 3,682,378 (6,473,592) (3,496,922} Debt service as a percentage of noncapital expenditures 17.996 18.096 19.596 19.2% 120 Tffile 4 2003 2002 2001 2000 1999 1998 36,455,642 35,866,286 34,848,255 32,935,292 30,834,340 28,598,223 1, 432,955 1,268,203 1,293,114 1, 391, 263 1,163,821 1,182,582 4,817,750 4,639,573 4,292,940 4,559,674 3,738,739 3,5D0,687 1, 582,165 1,821,922 1,864,181 1, 550, 554 1, 493,626 1,280,520 177,162 137,791 124,299 103,756 108,834 94,990 57,169 99,D24 35,428 8,691 3D3,796 8D,668 822,474 1,477,290 2,491,631 2,396,457 1,924,921 1,662,245 1,D44,102 550,253 1,020,699 1,076,730 852,393 1,272,647 771,43D 767,958 723,256 765,153 737,083 659,658 328,110 305,159 268,081 231,065 207,101 173,020 33,874 106,358 35,346 39,121 135,657 16,742 777,753 1,224,113 188,847 161,695 397,702 307,217 48,300,586 48,263,930 47,186,017 45,225,451 41,898,D15 38,829,199 8,323,987 8,260,838 7,091,278 6,705,976 6,022,845 5,311,964 20,543,273 19,912,79D 17,822,650 17,162,067 14,892,523 14,789,361 5,988,300 5,633,847 5,331,237 4,847,691 4,548,879 4,279,994 3,270,197 7,012,492 1,953,501 2,005,802 1,960,968 1,851,416 8,315,345 849,446 8,181,310 5,865,897 9,361,714 7,898,712 5,826,894 5,718,661 5,295,296 4,365,834 4,234,860 4,272,434 3,126,375 2,923,604 3,610,800 3,752,752 3,287,364 3,304,377 55,394,371 50,311, 678 49,286, 072 44, 706, 019 44, 309,151 41,708,258 (7,093,785) (2,047,748) (2,099,995) 519,432 (2,411,13fi) (2,879,059) 2,750,000 7,250,000 4,235,DDD 5,D35,D00 5,470,000 6,113,000 - 10,255,000 8,624,000 - - 4,995,000 - (10,394,890} (8,330,537} - - (4,995,ODa) 6,878,744 7,554,672 6,179,405 4,817,815 4,986,216 4,999,931 (5,002,772) (6,369,969} (4,965,513} (4,464,628) (4,231,516} (4,429,061} - - - - (758,351} - 4,625,972 8,294,813 5,742,355 5,388,247 5,466,349 6,683,870 (2,467,813} 6,247,D65 3,642,360 5,907,679 3,055,213 3,8D4,811 19.096 17.596 21.796 20.996 21.596 22.496 121 ~ , 0 0 0 0 0 0 0 0 0 0 ~ ~ •, y a~ °o °o °o o° °o °o °o °o °o °o ~_ t~ r~ ti ti ti ti ti r- r~ r~ F ~ ~ 0 0 0 0 0 0 0 0 0 0 i~ o H F- (~ I` N 1'~ OD ~f! M 00 M G7 r CO O ~ ti G7 O N O d7 ~ OD Cfl (D ~D rA ~ et O N ~ ~ 1~ ~!7 ~ ~ N d"1 OD I~ O ~ t~ 01 O tf! d7 Cfl ~ M CO (Q 00 e} ~~ ~ d7 O ~ N ~7 Cfl N N ~ ~ ~ ~~ M M r- CQ O M CO ~ ~ d7 CQ ~ M ~ M M ~f1 d7 1~ O f.! OD C'7 ~- M ~!7 OD O ~ N ~ Z r- ~ N N N N M M M M i„ r O ~ O O ~i7 I~ M OD h~ ~f! ~ O N 1~ ~ ~f! M ~ I~ O ~!'7 ~ ~f! O (D 4fl O ~ Cfl tL~ N M VJ ~ ~ r M I~ M ~ OD ~i7 00 ~fJ ~ CQ ~ lf9 Cfl M M 1`~ d7 ~ Cfl ~ W n. M ~ M 'd' M O M N N M J~~ ~ O r r M 00 ~ N 1~ 00 ~ ~ N N M M M M M M M *~ r M 1~ M 1`~ d7 Cfl O O 4C7 M (Q ~ CQ d"7 CQ M M N r- ~ 00 00 M i` r- O ~ 1~ ~!7 ~!7 Cfl N O M OD C7 r 1~ d7 1~ O~ O O ~ ~ ~ O (D N 4t7 M i O CJ L OD OD CQ O 1~ OD OD I~ ~ N N - a s ~!7 N CQ N d7 N M M ~ M M M er M et M C4 M ~ M W ~ i a I- g- 0 N J a (L1 d' O M a7 ~ r~ t~ v~ M J = p y N iL4 ~ 0- ~ 1~ M M ~ ~ CQ 1` OD N (` ~ 1~ ~ O OD O I` c.0 M M I~ G ~ ~ H L i ' ~ ~ OD CQ C~ 1~ OD M ~ O Cfl CQ O M M 00 ~ 47 M 1~ Z ~ ~_ ~^ ~ ~ i ~ ~ ~ r ~ ~ O M ~ M N CQ Cfl ~ Q J ~ N d V = Q Q~ Q. a ~ N OD ~ d7 O ~ ~ r M r N C7 O r' ti CO d7 N M _ ~ y 'a Q N N M M M M M M M ~ 3 ~ C ~ ~ ~ ~ ~ _ ~ .,,, O O N ' O " ~ ~ M 1~ OD M N Cfl O OD t0 L!! `~ ~ J ~ ~ ~ N I~ lS~ 87 d7 d7 ~f! N N O ~ 00 Z y (/~ '~ ~ ti to C4 O N ~ ~ O G7 ~ ~ LL a ~(4 ~l~ y~ p, N CO (D M r et 1~ M N GD ~ (Q N ~ r M to 1~ r N ~ r ~ ~.... O. ~ ~ OL M ~ d' N ~ N r M 1~ M ~ M O M ~ N M N ~ N 7+ N ~ Q ~ C a ~~ t i ~; ~ N '~ ~+ ~ (") ~ ~ O N ~ ~ O ~ ~ ~ M t D 1 ~ 61 p ~ V ~'' , O M 67 OD ~ ~ lf~ r ~_ ~ O N ~ ~ Q i M ~ C~ ~ 7 OD ti) ~ CC~ OO F14- N ~ O p ~ i' I~ 4f! 1~ O I~ N O N ~ OD CO r 1` M O tD M ~7 c.0 O 'Q ~ „ o d ~ ~ M M ~ ~n ~n c~ cfl to c~ r- ~ ~ ~ ~ ~ Q a~ U ~ N V V ~ 00 O ~f1 O Cfl O ~! J M ~ M I~ M OD N ~ d7 1` M (Q y y ~ ~ _ N_ C~ ~ W (Q N ~ i~ ~ N O 1~ ~ lL"J N ~t7 M t,{) CQ N N N ti t~ ll1 ~ n, d7 ~ 00 Cfl N (D 6l M N CD VJ y L O N ~!7 t~ N C4 d7 O ~!7 00 N ~~ l4 A L N N M ~ cfl OD O ~ N M L Q Q r r ~- r r r N N N N e~ C ~ ff} ~ ~ L L LL 1~ lei i V~ OD d7 O O O O r- O N O M O ~ O ~f! O Cfl O I` O V VJ } d7 Q9 O O O O O O O O y ~ ~ N N N N N N N N ,., ~ 122 N t~ N N N 1~ 1~ OD OD OD OD 00 r OD OD O O N N N N N O O ti O O ~ ~ ~ ~ r y CO Cfl ~ I~ I~ OD OD OD OD ~ 'O N N N N N N N N N N M ~ ~ d"7 d7 O O O O O ~ OD OD 00 1~ 1~ O O O O ~!'~ `~ ~ t~U ~ ti ti ti ~ 1~ 1~ I~ ~+ N N N N N N N N N N ~ O O O O O O O O O O O C~ I~ I~ t` Imo- t~ O O O O O ,.., O O O O O ~ ~ ~ ~ d' r ~ ~ ~ `f' mot' N 4t7 4t7 ~!! ~!! '~' M M M M M M M M M M ~ N N N N N N N N N N ++ O O O O O O O O O O ~Q H O 2 _y C cN C N ~ X ~ W ~ I- ~ p) N ~ ,,~ .Q N J Q ~ _ ~ > Z Q ~ ~ _ ~ vi ~ C3 ~ ~ c~v ~ N O ~ = L O "`--' ~ ~ r i ~ L rt~+ Q ~ x ~" (0 _~ ~ ~ ~ N Q O i a O O O O O O O O O O ~~ N, ~ O N O d7 O O O O ~O O~ O O M W CQ ~ r ~- r tQ '~ O V O O O O Lf~ C~ Cfl (D C¢ ~!7 ~~ ~L r r r r r r r r r r m H N r ~- r r OD OD O O O I~ t} ~ ~ ~ M M M M M r 1~ CQ CQ CO CQ O d7 67 G7 d7 i~ tf~ O O O O M M M M M O ~ p r r r r r r r r r ~C ~ O O O O O O O O O O ~ ~_ ~ O V O O O O O O O O O O `~ tt7 ~f! In l!7 l7 ~!7 tfJ L!! 4C! 4i~ ~ O O O O O O O O O O `O r H 00 07 I~ M C~ Cfl ~ N (D O Ri V _ V ~L ~ O ~ ~ M M ~ ~ M N N ~ N N N N N N N N N N y= 0 0 0 0 0 0 0 0 0 0 ~ ~ ~ ~ ~ w o d Z ]O Cfl O N sf r- ~f! Cfl M N ~i7 ~ r r- N Cfl M M 4!7 1'~ M O ,~ CO ~f7 st ~ ~f7 d7 G7 r ~ Cfl O r N M M N N M ~ ~ M M M M M M M M M M C '~ O O O O O O O O O O ~ _ L OD d7 O ~ N M ~ t!7 (D 1~ V ~ 07 d7 O O O O O O O O H} d7 d7 O O O O O O O O ~ r r N N N N N N N N V y 0 0 0 V .... C N C ~ ~ ~ Q. N .a ~ ~ O ... N V C = N ~~ L L (L~ m~ /~/~~ r W V r N M ...r .... ~..~ N V L O 123 CITY ~F NORTH RICHLAND HILLS, TE7CAS Principal Taxpayers {unaudited} Year Ended September 3D, 2887 288fi assessed Taxpayer Type of business valuation* Wal-Mart Retail $ 62,207,772 Hospital Corporation of America Healthcare Provider 39,768,078 Western RIM Investors LP Real Estate 38,363,174 Home Depot Retail 29,669,667 Mega Life & Health Insurance Co. Insurance 27,666,466 Alliance Park Portfolio Real Estate 26, 641,142 TXU Electric Delivery Utility Service Provider 26,338,766 Delaware aak River LLC Property Developer 23,968,000 Five Star FordlPack Properties Automotive Dealership 23,180,386 Kimberly Clark~Tecnol, Inc. Manufacturer 20,901,376 318, 383, 716 Year Ended September 3U, 1998 1997 assessed Taxpayer Type of business valuation* Richland Center, Inc. Property Developer $ 26,022,209 Texas Utilities Electric Co. Utility Service Provider 18,488,767 Meadows NRH Associates LP Real Estate 17,000,000 Kimberly ClarklTecnol, Inc. Manufacturer 16,206,693 CAMC~ Development Property Developer 16,676,004 North Hills Mall Associates Real Estate 16,600,000 E-Systems, Inc. Pool Trust ~ Vacant land/apartments 13,843,222 Mega Life & Health Insurance Co. Insurance 9,948,144 H & M Food Food Manufacturer 9,646,138 Primary Properties Corporation Real Estate 9,617,242 160, 946,409 * Source: Tarrant Appraisal District. Table 7 Percentage of total assessed valuation 1.83°r6 1.17°~ 1.13°r6 0.87°~ 0.81 °~ 0.78% 0.77°~ 0.70°~6 0.68°~ 0.61 °~6 9.34°~ Percentage of total assessed valuation 1.36°~ 1.01°~ 0.93°~6 0.88°~ 0.86°~ 0.86°~ 0.76°r6 a.64°~ 0.63°~ 0.62°r6 8.23°~6 124 t~ H H ~ O ~ ~ J_ ~ = U ~ ~~~~-. ~ ~ U ~ J N N 2 ~ ~ ~ ~ J ~ ~ H ~ ~ ...• s~ ~~'+ J QL LL p L ~_ ~ ~..~ C y C }r d' I` I` Q O ~ M Ca ~t N r.+ ~ 00 1~ OD CA W W I` I` CQ ~!7 ~ i J ~ ~ 6Q3 ~ ~ ~ OQ7 QQ'i ~ ~ C ~ ~ ~ N C C ++ ~ CMD N QM1 ti ~ N ti ~ ~ ~ _ W Ca ~ QJ OD CQ Q ~ (~_ OD ~ C Q M Q ~7 Q O r Cd ~ M V ~ M N ~ N r M M r r M ~ ~ r r ~ 1` O r C10 1` r O r N M ~ td I` I` W ~i r r r r r r r r r r ~"~ H = IN 4f7 ~ ~ ~ ti ~ ti N I ~ ~ N ~i ~ N I` N ~i 00 C ~ _ _ ;~ ~ ~ Q~'3 O ~ ti ~ M I` M 4Nf') H t~ r N M N N N r N ~ ~ ~" ~ ~ ~.? ~ ._ . C ~ ~ OQO, O Q r dQ' r ~ N 4Nf") a> > ~ ~ ao ao 0o t` ao ao ao ao ao w ~ J~ ~7 Q Q Q Q Q Q Q Q Q C ~ 0. ~~ ~~ ~ T3 ~ r Cfl M Q O Q O C~ I` O ~ ~ Q ~ N r (Q ~ M O ~D ~ ,~, M M 4[7 ~ ~i OD ~t ~i W 00 y~ C ~ ~f7 N N N 00 O Q3 r M Q C? C M ~ Q3 O ~ ti 00 Ca ~ r (~ , y ~ O r r M ~ Q to I` 00 Q ~ ~ r r r r r r r r r r N N Q} O N ~.f~ N N ~ O }ti (O M CQ ~ N 4f7 O (~ r ti ~ ~ ~ ~ ~ Q ~ ~ ti 4f7 OD N (Q X '~ j'- r ~ ti O r Q7 I` ~ ~ O r N M ~ C~ 1` I` W Q ++ r r r r r r r r r r (~ ~ pD Q Q r N M d' I.f) Q ti C? Q3 Q O O O O O O O O N~ Q Q O N O `O O O N O LL 125 ~ o un o o u~ o o u~ o o ~ a ~° ~° ~ ~° ~° o Q ~° 4! ~ ~ +~ ai ~ m N ~T f~- f'~ lC7 m rn h^- .- rn m m m m m o cv ~ v CD m u7 ST cD o7 m m o ~7' ~ m o~ v cv ~ m a~ ~ u~ m as ~ } O ~ ~ _ 0 0 0 o rn m r~ ti cv ~n , ~ ~ C ~. rv ~ ~ ~i un v ~- m m c~v i ~ ~ 0! ~ N i t } 1~ C ~ ~. V ~ ~ N ~ a c •c L 4[71 O] m m cr •- m ~ m m a.+ •"~ .- CD N ~ .- u7 ~ o O ti ,,~ m m co [a m m cv .- I` ~- .~ ~ N cv [s7 m r- u7 .- f~ •- C~ Q7 67 67 67 07 07 07 m 1`~ f~ Q~ ~ CC CC m m m CV C"J O o 6] •r... ~ r - - - - - - N yam,, a~+ ~ 'Q ~ ~ .-- ~ ~ ~ ~ ~ a ~ f-- ~ V V o 4! ~ Q ~ a~~` ~ ~ ~ ~ ~ ~ ~ a~~` ~ o CO h•- LO 67 CD O ~L7 (D 47 y ~ ~f CO tD o CV m ua O Ql `t +-~ rn ~ C.D C7 (£7 CD u7 co QJ m a~ ias f ~' co r~ ~n ~ c~ , rn ~ m ~ ccy ~ d- - m - ,,,.~ ~ i r~ r~ rn ~ m o m rn ~ m r- m ca co co ~n m u~ t rn o cW c~ rv cv c u r ~ ~ ~ ti h~ h- f`~ h- f~• 1`~ I~•- CS7 CD u7 V o N ~ ~ QI O ~ ~ Q ~ O a ~ m ~ m m O 4I"l O l27 cr ~ N m QI ti ~f7 t~ r- ~t ~- Cv [D Sr c~ ,~ rn v c-~ cs~ rn rn m ~ ' ~ m ~. ~~ o ti o N N~ v •- ` _ Q7 CV I~ Cd CD Cf7 I`~ V C o (£7 ~ y~ ~ f~ C.D m m N O d7 f~ m f f~ '~ r ~f7 '~ Lfl V' ~ 4[7 ~ f~ ~ ~f7 ~ Lf7 ~ O X17 67 V U7 Sf ~ ~ ~ ~ a+ S7' m ~ o rn O d7 m m N ~ ~ .--- N ~ } F- N ~ F ~ ~ ~ ~ •tfl 1~ ~ ~ N ¢ x ° ° 1 1 1 1 1 1 l I I I I °~o W~, rn N cv N ~n ~ m ~ N~~ ~ ~ ~, ~~ ~~ J ~ ~ Z ~ U a~i 2 ~ m ~ ~ ~ a~ Z ~ ~ -a ~ U ~ (f1 i J Vl -p +' ~ ~ .fl ~ ~ ~ o ~ ~ ~ ~ ~ ~ ~ ~ I I I I I I I I I ~ ~ ~ ~ n a~ ~ in ~ ~7 V c~ csa! m c~ u~ m v o ao ~~, ~ ~ a~ ~ ~ ~ _ ~ ~ C ' F- O fir ~ v ~ ~ i ~ ~ O J p ._ a.+ ai ~p U ~ Z° m a p U o cLS ~ ~ m ~ a U . ~ ~' ~ r _ ~ v -_ ~ w ~ c V N cr rn m 4n r~ m r-- m cr ~- r N u~ c~ o m ~~ m a~ r- o ' ur ~ c~ c~ o r- u~ o rn m rti rv } ,F r- v ~ m v c~ cfl ~ m cv 0 ~ rn m o un m ~ ~ ~ c~ u~ m rn m v: ~ r- a m ~, o u7 i cr I ~ S] p ~~ ~fi v- V v V cf C`V ct 6] m Q7 m O v ~I7 c~-~ OJ m N m V N C Q o 47 ~[] ~f m m ~f7 ~ LC) ~ V ~ o "~ c a c a- ~ s ~ m ~• V m ~ N 'ate ~, ~. + +"~--. ~ all y~ ~ O • ~ "C3 .~ y U ~ ~ °' `~ o c . ~ ~ N ° ~ > m w ~ ~ c a a m ~ co m u~ o ~.n rn m y rn rn m ~ m a rn N ~ ~ ~^ ~ ~ u~ ~~~ c~ ~ oa m un u m co m cv r~ co un rn u-~ ~t ~ ~ ^ n~i m ~ c n i c~ o m ct m o c~ n c ~ ~t i ~a m a m ~ ~; x c ' ~ ~ cmo m cm*a CO ama a `~ cmra rn o ~ ~ cr v cr v v m r ~r ~ ~ .~-, ~ x y m a~ ~ c~ ~ m a r- N ~ ~- a- c ..~ .v, ~ ~ ~ w ~~ ~i } r- ~ N rv cv c~ m m m c ~ ~ p U' m a o c ~ '~'' a o Z _ •- c u~ c o o l ro . ~ o m ~~ ~~ ~ ~n ~ r~ ~ ~ j ~ o C..1 ~ - ~ I I I I °m~° ° Q ~ o a ~`~ ~ a- a c oc }; ~ o o 0 o m O] r- N o m o L7 m CD .- N o lY7 ~ o ~ ~ ~ ri m m cv rv ~ o c~ ~_+ d ~ k ~ ~ O m 47 m o LL7 ~f CO l~l ~ CD ~fS o ~ QI ~ ~ +-' '•~ .'_' C ' - ~ „ N L[7 ~t ~I7 m ~ r-- Lfl m U7 C77 4Cl m C£Ji ~ LO m CQ 5t Cf7 L ~ ~ CS) O ~ ^ ~ ~ '~ N Q ~ W o ~ fd } ~ o ~ m ~ ~ ~ ~ ~ O (t] ~ C ~ ~ ~ ~ ~ UJ N a) - ~ 9 ~ f/1 (Cl i~ (~ ~ ~ L ~ m rn o r- cti m mot- u-~ co r- ~ ~ ~ m rn o •- c~ m ~ ~ car r- ~ ~~~ ~ ~ V ro vi ~ an rn rn rn o o 0 0 0 0 0 0 0 0 0 0 0 0 o 0 V ~~ a~ rn o 0 0 0 0 0 0 0 m m o 0 0 0 0 0 0 0 ~•~ N c Y' ~ .- CV N N CV N [V C`V C`V ~ ~ •-- •-- CV N N C'-V CV N iV CV ~ 126 a -- z.J~'..~ CITY ~F NORTH RICHLAND HILLS, TEXAS Table 1U Computation of Direct and overlapping Debt September 30, 2007 (unaudited) Percentage Amount applicable to applicable to Total funded City of North City of North Jurisdiction debt Richland Hills Richland Hills City of North Richland Hills $ 59,472,380 100.00°~ $ 59,472,380 Birdville Independent School District 251,475,320 44.54°~ 112,007,108 Hurst-Euless- Bedford Independent School District 217,605,395 0.11°~ 239,366 Keller Independent School District 612,851,660 4.84°~ 29,662,020 Tarrant County 264,920,000 3.26°~fi 8,636,392 Tarrant County Hospital District 30,330,000 3.26°~ 988,758 Tarrant County College District 49,005,000 3.26°r6 1,597,563 Total overlapping debt 153,131,207 Total direct and overlapping debt $ 212,603,587 Source: Respective entities' records. ~2l CITY ~F NORTH RICHLAND HILLS, TEXAS Table '11 Computation of Legal Debt Margin September 30, 2007 (unaudited) Article XI, Section 5 of the State of Texas Constitution states in part: "...na tax for any purpose shall ever be IawFul for any one year, which shall exceed two and one-half percent of the taxable property of such city." As a home rule city, the City of North Richland Hills is not limited by law in the amount of debt it may issue. The City's Charter provides that general property taxes are limited to $1.50 per $100 of assessed valuation for general governmental services including the payment of principal and interest an general obligation bonds. The tax rate for fiscal 2007 was established at $.57 per $100 of assessed valuation based on 100°~ of appraised value. 128 N r Ci3 OD N OD Cp COk 1` r ~ M ~ 00 M M W O Cn Imo- ~f7 ~ CO ~ r r N r N r r r r r ~ ~ C O 0 0 ~ ~ O 00 4f) M ~ O 00 00 CD CD M r CQ O r I,('y O ~ ~ ~ r M b' ~ ~-' M I'~ O ~ N N N 'd' ~ r r r r r r r r r r r r r r r y C ~ r m ~ ~ N ~ i .. .. ~ ~ O GO O 1` CA ~ ~3 O M M V OND ~ t0D M r ~ ~ r ~ C7 ~ y ~ y ~i O ca _ 00 _ C17 0f3 r O0 N 00 ~ ~ ~ Imo,- ~ ~ ti ~ ~ M ~ M N x ~ ~ ~ I- ~ y Q ~ ~ ~ ~ X W ~ O O O O O O O O O O ~"" a~ o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CJ~ ~ ~ ~ o ~s i ~i ~i ~i ~i o ~ci ~n o J ~ ~ '~ ~ ~ ~ ~' ~' ti ti ~ N o _ c a c o a 0 a o 2 > ~ ~ ~ .c ~ a Z ~ ~ _ ~ N ~ ~ LL ~ , ~ ~ ~ ~ ~ ~ ~ ' ~ ~ ~ ~ r ~ 1` ~ M ti ~7 ~ O ~ ~ r ~O O r ~ O 0 ~ a ~,, _ C ~ _ _ _ 0 0_ N ~ N N ~ J C y .~ y ~j R~ CQ r (Q M I` Q) 1~- OD CO ~ I` '~' O M r GQ N M ~ tt N 4f) M I` ~7 ~ ~ ~? . ~ ~ ~ I` Cd OD Z ~ i~ ~ N r N N N N N r r r LL y ~ ~ Q ~ Z ~ ~ _ ~ ~ i •, y r C~ ~f7 O Cii ~ O CQ N 4f7 t~f y ~ ~ ~ d~' M M 0OD N ~ 0OD ~ 000 a „ F ~ _ L~ ~ O ~ ~ O N C37 r COk M N t~ ~ I` 00 t` O M r r ~ N ~ ~ ~ r N r r r r N N N N to Vf ~ J W M ~ ~ ~ 0 M O ~ 0 0 N M X y 00 O r (D W M CA I~ 1` N ~ ~ Q ~ ~ ~ N 'mot' 1 ~- C ~ 4f) ~ G0 y~ O O N M r O r OD N y ~ M M tt ~ ~}' '~ ~ M 'mot ~ ~ ~ ~ ~ V~ O O O r N M ~ ~f7 CQ 1` y~ QCA'~ ~j O O O O O O O O r r N N N N N N N N 129 r O O N (~ N ~ ~? ~ ~ ~_ U ~ .~+ . C C ~ N ~ ~ .N ~ O U ~ '~ C Rf N a-+ L N .F+ ~_ •~ ~ ~ U U ~ C r N ~..r r..r M ,~ ~ ~ a> a> ~ ~~ ~ A 'd' f- o~ o r7 rn ti ti ~ o ~ ~ 00 L N y., C3? N COY c~'-) c+`) N ~- C'r5 I`~ cf ~ CO m m O~ o~ (O lC) ti N N ~ y .~. c~ r- oc7 ~ ~ Ln CG CO 03 -~ O ~~ O d Q5 O O O O O O O V ~ r ~ "". C N 00 O~ 00 CJC1 CC1 C O ~ ...r ,,p ~p ~ a c~- c7~ 0 0 ~ ~ r s-- ~ ~- ~- Q"J O ~ O Q5 'O W m ..... m .1 ..-~. m ._.. r~ ..... c~ .~ r- ._.. r- .1 r~ ~. ti .~ ti ,... N Q X W ~ ~- ~ y ~ acs u~ ~,t ~t ~n c+7 t~ oo cn (A a~i ~ c~i m m m cri m ~t ~ ~t m cry cri Sri ~ ~n m ~n cYi ~n m ~ J ~ a,1 "'~ ~ L U `N ~ ~ O ^ ~+--' _ ~ l ~ Z ~ O Q cn ~ °' ~' v . `n ~ _ ~ ~ ~ E ° V ~ ~ ~ ~ .-, ;~ 0 o 0 0 o o r- vo r-- 00 cc~ ~ m rn ~- co ~- ~ oo ~ ~ a ~ a~ ~ F- , ~ oa a~ cn r~ r~ cc> m ca i cfl .n = ~ a ~ ~~ ~- ~- ~- r- ~ ~ ~ N ~ N oo N rn N a N o c~'7 C~ ~ O ~ V ~ ~ ~ J L V N vOi ~ ~ .~ L ~ ~ Cfl Q _ O ~ a--~ ~.. 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NE Campus 475 fi 1.37°~ Silverleaf Resorts 414 7 1.19°Jo Tyson Prepared Food 410 8 1.18°~ Wal-Mart Supercenter 3fi1 9 1.04°~ Wal-Mart Supercenter 352 10 1.01 °r6 fi,790 19.51 Year Ended September 30, '1998 Percentage of total City Employer Employees Rank employment Kimberly Clark/Tecnol Division 810 1 4.71 MEGA Life & Health Insurance Center 790 2 4.59°~ North Hills Hospital fi40 3 3.72°~ TCJC - N E Campus fi18 4 3,59°~ Birdville ISD 810 5 3 55% City of North Richland Hills 521 fi 3.03% Walker Building Corporation 321 7 1.87°r6 Wal-Mart 257 8 1.49°~ H & M Food Systems, Inc. 235 9 1.37°~ Foley's Department Stores 230 10 1.34°~ 5, 032 29.27°r6 ~ Number denotes employees working in schools in the City of NRH ~ Split with Hurst * Source: City records 131 CITY OF NGRTH RICHLANQ HILLS, TEXAS Table 15 Full-time Equivalent Municipal Employees by Function/Program Last Ten Fiscal Years (unaudited) General government Administration 5.25 5.25 5.25 5.25 Legal - - - _ Public information 5.00 5.00 5.00 5.00 Judicial 14.00 14.00 14.00 14.00 Finance 23.50 24.50 ~ 24.50 24.50 Nondepartmental 1.00 1 .00 1 .00 1.00 Human resources 1.00 1 .00 1 .00 1.00 Planning and inspections 12.30 1 1.30 11 .30 1 1.50 Neighborhood services 18.75 18.66 18.66 18.66 Budget and research 3.00 3.00 3.00 3.00 Public relations 7.19 7.19 7.19 7.19 Total general government 90.99 90.90 90.90 91.10 Public safety Police 159.65 159.65 159.39 161.39 Fire 92.00 92.00 92.00 87.00 Total public safety 251.65 251 .65 251 .39 248.39 Culture and recreation Parks and recreation 120.30 114.94 1 15.10 116.10 Library 23.33 23.33 23.33 23'.33 Economic development 3.00 3.00 3.00 3.00 Total culture and recreation 146.63 141 .27 141 .43 142.43 Public works 79.18 76.18 76.18 79.98 Internal services Building services 14.23 14.23 14.23 14.23 Equipment services 1 1.65 1 1.65 11 .65 1 1.65 Self-insurance 6.00 6.00 6.00 6.00 Information services 12.00 12.00 12.00 12.00 Total internal services 43.88 43.88 43.88 43.88 Total full-time equivalents 612.33 603.88 603.78 605.78 Source: City operating budget 132 Table 15 2003 2002 2001 2000 1999 1998 5.75 5.75 5.23 5.00 6.00 5.00 - - 1.00 1.00 1.00 2.00 5.00 5.00 5.00 5.00 5.00 5.00 14.00 14.00 15.00 14.00 13.50 13.50 24.50 24.50 24.50 25.00 25.00 29.75 1.00 1.00 1 .DO 1.00 1.00 1 .00 1.00 1.00 1 .00 0.90 0.70 0.44 15.50 16.5 0 16.50 16.00 14.0 0 11 .50 14.66 14.6 6 14.50 13.43 13.4 3 11 .44 3.00 3.00 3.00 3.00 3.00 - 7.19 7.19 7.00 6.99 6.99 5.25 91.60 92.60 93.73 _ _ .91.32 ______89.62 _ 84 .BB 1F1 '~Q 1F1 ~Q 1Rn RA 1rd'~R 1dQ'~R 1dR ~Q 248.39 248.39 244.39 238.38 233.38 230.39 116.19 114.29 1 14.29 110.80 105.85 102.71 23.33 23.33 23.33 22.93 22.43 20.68 3.00 2.00 2.50 3.00 3.00 3.00 142.52 139.62 140.12 136.73 131.28 126.39 80.48 80.48 79.48 76.15 76.49 87.49 14.23 14.23 14.23 14.13 14.13 13.63 11.65 11.65 11.65 11.50 11.5D 10.00 6.00 6.00 6.00 6.58 6.53 5.49 lnnn lnnn ~:~nn 1:~nn ~1~n a75 607.87 605.97 602.60 587.79 574.43 568.02 133 CITY OF NORTH RICHLAND HILLS, TEXAS Operating Indicators by FunctianlProgram F i scal Year 2007 2006 2005 2004 General government Planning and Inspections Canstructian Commercial units 56 40 29 47 Cammercialvalue 15,D63,593 53,706,815 14,139,519 21,210,050 Residential units 235 382 dZ0 310 Residential value 54,190,911 79,332,989 77,631,113 53,937,035 Public safety Police Lawvialatians {2} 3,403 4,694 4,767 3,764 Part one offenses 3,216 3,31 B 2,911 3,312 Traffic violations 20,010 22,124 22,810 21,317 Calls far service 103,137 107,096 {~ 114,058 116,677 Case clearance % 3696 37% 37% 37% Fire Total respanses 6,749 5,770 5,570 6,992 Fire respanses 1,651 1,633 1,438 1,696 EMS respanses 5,D96 4,137 4,132 5,296 %respanses < 5 minutes 72% 7396 73% 72% Total inspections 2,D07 2,033 1,946 1,020 Culture and recreation Parks and recreation Water park admissions 248, 205 260,669 250,682 213,285 ~~ Golf rounds played 48,838 39,603 50,187 52,176 Library Number of volumes 177, 270 179,366 176,719 170,849 Annual circulation 660,627 697,013 696,954 723,206 Annual loans per capita 1D.31 10.97 11.30 11.97 Public works Water (4) Avg daily consumption 1,178,439 1,397,254 1,264,837 1,131,712 Peakdaiycansumption (4) 2,449,372 2,701,738 2,767,834 2,400,668 Streets Street overlay -miles 8 9 11 8 Concrete pavement repair- sq. ft. 14,694 9,465 5,474 1,779 Pothole repair- sq. ft. 10,480 8,736 12,969 15,282 Street cut- sq. ft. 156,141 179,703 151,706 231,462 Sign fabrication 2,040 1,795 1,556 2,389 Source: City records (1) Unavailable data is reflected as "-" an the report. (2} Excludes traffic violations {3) Course closed framJuy 1st to September 15th, 2006 for renovations. {4) Cubic feet {5) Method of calculationwas changed by Police department Table 16 134 Table 16 2003 2002 2001 2000 7989 1998 59 43 46 66 21 134 14,309,787 34,989,928 18,124,797 54,733,881 29,047,456 80,576,845 292 277 348 351 299 345 47,548,847 40,133,683 53,605,960 45,817,144 47,601,097 35,665,625 4,141 4,214 4,710 6,191 6,278 5,999 3,363 3,461 3,014 3,043 3,023 2,987 26,729 26,638 20,405 28,455 21,210 20,157 118, 4 27 118, 992 115, 946 115, 6 35 109, 663 109, 333 3996 38% 3996 36% 3896 37% 6,824 5,665 5,505 5,124 4,392 4,280 1,682 1,672 1,843 1,981 1,626 1,464 5,142 3,993 3,662 3,143 2,766 2,816 74% 7496 75% 7496 - - 1,169 521 331 76 - - 228,992 286,655 250,406 260,500 239,420 243,007 50,366 50,663 44,000 53,906 52,184 47,786 162,020 148,238 135,756 119,956 115,084 107,633 731,499 671,955 521,989 43D,420 384,694 404,569 8.47 11.46 9.08 7.62 7.01 7.66 1,190,464 1,165,894 1,205,488 1,237,752 1,373,302 1,465,237 2,976,738 2,576,385 2,927,130 3,025,134 3,348,262 3,658,422 8 6 6 7 11 4 4,471 2,142 1,201 - - - 11,322 12,632 27,934 17,206 13,23D 11,230 210,232 166,131 144,182 126,405 207,919 137,440 3,331 1,280 2,376 2,019 1,136 1,603 135 CITY CF NORTH RICHLAND HILLS, TEXAS Capital Asset Statistics ey FunctionlProgram Last Ten Fiscal Years (unaudited ~ Table 17 Fiscal Year 2007 2006 2005 2004 Public safety Police Stations 1 Fire Stations 4 Fire hydrants 2,077 Culture and recreation Parks and recreation Parks 32 Par~Cacreage 706 (1~ Playgrounds 20 Trails -miles 20 Golf Courses 1 Recreations centers 1 Athletic fields 53 (1) Senior centers 2 Library Libraries 1 Public works Water mains -miles 354 Water connections 20,516 Wastewater lines -miles 244 Wastewater connections 19,350 Storm drain -miles 137 Streets -miles 232 Street lights 3,580 Source: City records (1) Subtracted Thomas Acres (BISD property NRH na longer maintaining 1 1 1 4 4 4 1,900 1,850 1,840 31 27 25 741 720 720 17 17 15 15 12 11 1 1 1 1 1 1 59 58 57 2 2 2 1 1 1 342 341 341 19,784 19,356 18,977 234 233 233 18,618 18,257 17,898 135 133 133 227 225 221 3,515 3,155 3,100 136 Table 17 2003 2002 2001 2000 1999 1998 1 1 1 1 1 1 4 4 4 4 4 4 1,830 1,775 1,700 1,677 1,649 1,400 24 18 18 18 16 15 701 675 675 667 667 667 16 12 13 13 11 10 7 6 6 6 4 4 1 1 1 1 1 1 1 1 1 1 1 1 57 47 47 47 42 37 2 2 2 2 2 2 1 1 1 1 1 1 334 325 319 315 291 300 18,611 18,329 T8,091 18,048 18,220 18,15$ 229 224 219 233 233 200 17,588 17,020 16,654 17,15$ 16,42.6 16,764 131 129 129 127 126 125 214 212 211 208 207 206 3,045 2,100 2,070 2,030 2,030 2,005 137 CITY ~F N~RTN RICHL,4ND hI1LLS Department: Finance Presented by: TPoweIIlLKoonce Council Meeting Date: 2-25-2008 Agenda No. F.3 Subject: PU 2008-007 Award RFP 08-008 to DryTec Roof Consultants in the Amount of $52,320 for the Roof Consulting Services The approved Building Support Services Capital Improvement Project includes funding for the repairs of existing roof structures at three t3} City facilities including Bursey Road Senior Center, Support Services and the Public Works Storage located at the Service Center. Most of these facilities have some type of roofing deficiency that needs repairing to extend the life of the roof and prevent water leaks that would result in higher repair cost. This project will also consist of replacing the existing roof structures at three ~3} City facilities including City Hall Complex and Fire Stations 2 and 3 due to damage sustained during the April 2007 hail storm. The Roof Consulting Services are to include the evaluation of the roofs identified in the proposal, preparation of documents and specifications as well as construction management throughout the project. Notice of the Intent to Bid was advertised in local newspapers, as required by State Statute and pasted on the City Website. Eight ~8} vendors were contacted and requested to participate in this process. Bid specifications were viewed on the City Website by thirteen ~~3) additional vendors. Five ~5} Competitive Sealed Proposals were received from the following firms: Conley Group DryTec Consultants Harper Browner Mcl ntare & Associates PSM Consulting A committee consisting of Chris Amarante, Construction Manager, David Pendley, Building official and Ken Raney, Project Manager evaluated the submitted proposals. The evaluation committee requested interviews with three ~3) of the five ~5) firms. The skills and process for the evaluation of the roofs, document and specification preparations and the level of related experience was equally demonstrated by the three finalists. PSM Consultants' lack of identified team members for on-site management and being located in Austin quickly placed them in third place. After the interviews the firvo remaining firms were asked to revisit the scope of work, review their approach to each phase and submit a Best and Final offer. After evaluating the Best and Final C!ffers from Mclntare & Associates and DryTec Consultants, staff was able to identify best value and project results would be through DryTec Consultants with the clearly defined construction management information they provided. Mclntare & Associates' proposal demonstrated a base cost for a specific number of inspections but the total hours were not identified. Staff determined there could be additional project expense due to probable additional inspections or meetings that would increase their base proposal cost. DryTec is actually the low bid because of the `not to exceed' clause in their proposal. They quantified the total inspections in days and total hours. Mclrrtare & Associates subm~ted a lower proposal but had identified additional costs of $50o for each inspection or meeting in excess of the proposed fifty three X53} days with no total hours quantified. DryTec Consultants provided clear scope information for preparation of specifications and construction management of each phase of the roofing project in their original proposal and again in their Best and Final Qffer. By providing the total number of days and hours for site management, a not to exceed clause, the committee could easily understand where the costs savings were apparent. DryTec Consultants' references were checked and each one highly recommended the company as a firm that goes the extra mile to ensure the integrity of their reputation and they would each continue to use the firm in the future. Recommendation: Award RFP D8-~o8 to DryTec Roof Consultants in an amount not to exceed $52,320, plus reimbursables, for Roof Consulting Services c1rY of NORTH RICHLAND H1LLS Department: City Secretary Presented by: Council Meeting Date: 2-25-20D8 Agenda No. G.0 Subject: EXECUTIVE SESSION ITEMS clry of NORTH RICHLAND H1LLS Department: City Secretary Council Meeting Date: 2-25-208 Presented by: Agenda No. G. ~ Subject: Action on Any Item Discussed in Executive Session Listed on Work Session Agenda CITY oI= N~RThI RICHLAND hI1LLS Department: City Secretary Presented by: Council Meeting Date: 2-25-2~~8 Agenda No. H.~ Subject: INFC~RMATI~N AND REPORTS clry of NORTH RlCHLAND HILLS Department: Communications Presented by: Councilman Tim Barth Council Meeting Date: 2-25-2008 Agenda No. H.1 Subject: Announcements -Councilman Barth Announcements The March 10th City Council -Meeting has been rescheduled to Monday, March 17th. The meeting will begin at the regular time of 7:00 p.m. Hop on out and join us on for North Richland Hills' 19th Annual Easter in the Park celebration. This event is scheduled from 10:00 a.m. to noon on Saturday, March 15, at Green Valley Park, 7701 Smithfield Road. For more details, contact the Recreation Center at 817-427-G500. As a convenience to residents, the City is now issuing garage sale permits online. Residents may also view a list of upcoming garage sales on the City's web site. To take advantage of these new services log onto www.nrh~c.com and go to the Online Services tab on the left side of the home page. A garage sale permit costs only $5. Kudos Korner Every Council IUleeting, we spotlight our employees for ifhe great things they do. Fire Department A resident sent a letter of appreciation for the Fire Department's quick response to a grass fire in her neighborhood. She said the Department's actions resulted in 3 homes being saved. She also praised the firefighters for being professional, courteous and caring, and said they should be recognized as heroes. clry o~ NORTH RlCHLAND H1LLS Department: City Secretary Presented by: Council Meeting Date: 2-25-2aD8 Agenda No. H.2 Subject: Adjournment