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HomeMy WebLinkAboutCC 2007-08-27 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, August 27, 2007 6:00 P.M. A.1 Discuss Items from Regular City Council Meeting A.2 IR 2007 -103 HB 621 Super Freeport Tax Exemption (10 Minutes) A.3 Adjournment ('Prtifiratinn 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 August 24, 2007. 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 817427 -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, August 27, 2007 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.2 Pledge - Councilman Whitson A.3 Special Presentation(s) and Recognition(s) - Yard of the Month Awards for August 2007 presented by Councilman Sapp A.4 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.5 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 the August 3 -4, 2007 Budget Work Session B.2 Approval of Minutes of August 13, 2007 City Council Meeting B.3 PU 2007 -040 Award Proposal No. 07 -1384 for Data and Telephone Cable Installation at the New Library to Premier Communications in the amount of $35,608.36 B.4 PU 2007 -039 Authorize to Continue the Purchase of Badger Water Meters and Telemetric Devices and Price Increases From Atlas Utility Supply Company through January 31, 2008 B.5 PU 2007 -041 Award the Purchase of Video Recording and Broadcasting Equipment to Visual Interactive Dynamics in the amount of $34,890.00. C00 =11JAIMAIml CAI IMIIIt C.1 CN 2007 -068 Conduct Public Hearing on Proposed 2007 -2008 Budget C.2 CN 2007 -069 Conduct Public Hearing on Proposed Tax Rate D.0 PLANNING AND DEVELOPMENT Items to follow do not require a public hearing. No items for this category. E.0 PUBLIC WORKS No items for this category. F.1 CN 2006 -067 Denial of 2006 Interim Rate Adjustment Proposed by Atmos Energy Corporation, Mid -Tex Division - Ordinance No. 2948 F.2 G 2007 -074 2008 Selective Traffic Enforcement Program Grant (FY 2008 STEP Grant Agreement) - Resolution No. 2007 -050 F.3 PU 2007 -037 Award Bid No. 07 -1377 for Library Furnishings to BKM Total Office of Texas for $110,993.63, Business Interiors for $13,618.52, and KI for $47,265.35 for a total amount of $171,877.50. F.4 G 2007 -071 Approval of New Committee Members to the Youth Advisory Committee F.5 CN 2007 -070 Appointments to Animal Control Shelter Advisory Committee - Places 1 and 3 F.6 G 2007 -072 Appointments to the Red Light Camera Advisory Committee F.7 INFORMATION AND REPORTS - Mayor Pro Tern Compton F.8 Adjournment All items on the agenda are for discussion and/or action. ('Prtifiratinn 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 August 24, 2007. 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 817427 -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, August 27, 2007 6:00 P.M. A.1 Discuss Items from Regular City Council Meetinq A.2 IR 2007 -103 HB 621 Super Freeport Tax Exemption (10 Minutes) A.3 Adjournment CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 8 -27 -2007 Presented by: Agenda No. A.1 Subject: Discuss Items from Regular City Council Meeting INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 2007 -103 Date: August 27, 2007 Subject: HB 621 Super Freeport Tax Exemption HB 621 is a bill targeted toward the Texas warehousing industry in an effort to make these types of operations more competitive with bordering states. With our current business mix and limited availability of raw land, warehousing is not an industry being pursued by NRH. For those existing businesses potentially affected by this action, the city's location within the region and overall business climate likely far outweigh any financial benefit provided by exempting these specific goods. Should the City Council decide to take no action, or not opt -out, the conservative estimate on lost tax revenue is about $30,000 per year. Unlike abatements, or most other tax incentives, which are negotiated based upon increased investment in a community, this exemption simply removes this revenue without a measurable positive financial impact. This tax burden would then shift to other taxpayers, or an equal cut in city services may be required to compensate. To opt -out the city must hold a public hearing on the issue prior to January 1, at which time the City Council will vote. If the City Council votes to opt -out, these goods -in- transit will continue to be taxed as they are currently, and if the City Council votes to not opt -out they will be exempted from taxation. Based again upon the conservative estimate provided by TAD, not opting -out would remove in excess of $5,000,000 from the city's tax rolls. Recently at a meeting at the NCT Council of Governments offices, a large number of cities were in attendance from North Texas and at that time none of them were planning to provide the exemption. After reviewing this bill and its impacts, we do not see any benefit to the City as a whole in granting this exemption. Should conditions in the future warrant a reconsideration of this matter, City Council may review and reconsider it at that time. We look forward to discussing this matter and receiving a consensus on Monday. Respectfully Submitted, Thad Chambers Director of Economic Development ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS � Department: City Secretary Presented by: Subject: Adjournment CITY OF NORTH RICHLAND HILLS Council Meeting Date: 8 -27 -2007 Agenda No. A.3 City of North Richland Hills City Council Regular Meeting Agenda North Richland Hills City Hall Council Chambers 7301 Northeast Loop 820 North Richland Hills, TX 76180 Monday, August 27, 2007 7:00 P.M. A.0 Call to Order - Mayor Trevino A.1 Invocation - Councilman Whitson A.2 Pledge - Councilman Whitson A.3 Special Presentation(s) and Recognition(s) - Yard of the Month Awards for August 2007 presented by Councilman Sapp A.4 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.5 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 the August 3 -4, 2007 Budget Work Session B.2 Approval of Minutes of Auaust 13, 2007 Citv Council Meetina B.3 PU 2007 -040 Award Proposal No. 07 -1384 for Data and Telephone Cable Installation at the New Library to Premier Communications in the amount of $35,608.36 B.4 PU 2007 -039 Authorize to Continue the Purchase of Badger Water Meters and Telemetric Devices and Price Increases From Atlas Utility Supply Company through January 31, 2008 B.5 PU 2007 -041 Award the Purchase of Video Recording and Broadcastinq Equipment to Visual Interactive Dynamics in the amount of $34,890.00. C.0 PUBLIC HEARINGS C.1 GN 2007 -068 Conduct Public Hearing on Proposed 2007 -2008 Budget C.2 GN 2007 -069 Conduct Public Hearing on Proposed Tax Rate D.0 PLANNING AND DEVELOPMENT Items to follow do not require a public hearing. No items for this category. E.0 PUBLIC WORKS No items for this category. F.0 GENERAL ITEMS F.1 GN 2006 -067 Denial of 2006 Interim Rate Adjustment Proposed by Atmos Energy Corporation, Mid -Tex Division - Ordinance No. 2948 F.2 GN 2007 -074 2008 Selective Traffic Enforcement Program Grant (FY 2008 STEP Grant Agreement) - Resolution No. 2007 -050 F.3 PU 2007 -037 Award Bid No. 07 -1377 for Library Furnishings to BKM Total Office of Texas for $110,993.63, Business Interiors for $13,618.52, and KI for $47,265.35 for a total amount of $171,877.50. F.4 GN 2007 -071 Approval of New Committee Members to the Youth Advisory C;nmmitFPP F.5 GN 2007 -070 Appointments to Animal Control Shelter Advisory Committee - Places 1 and 3 F.6 GN 2007 -072 Appointments to the Red Light Camera Advisory Committee F.7 INFORMATION AND REPORTS - Mayor Pro Tem Compton F.8 Adjournment CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Subject: Call to Order - Mayor Trevino Council Meeting Date: 8 -27 -2007 Agenda No. A.0 NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 8 -27 -2007 Presented by: Councilman David Whitson Agenda No. A.1 Subject: Invocation - Councilman Whitson NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 8 -27 -2007 Presented by: Councilman David Whitson Agenda No. A.2 Subject: Pledge - Councilman Whitson CITY OF NORTH RICHLAND HILLS Department: Neighborhood Services Council Meeting Date: 8 -27 -2007 Presented by: Teresa Hebert/Councilman Ken Sapp Agenda No. A.3 Subject: Special Presentation(s) and Recognition(s) - Yard of the Month Awards for August 2007 presented by Councilman Sapp AREA 1 Leslie and David Altamos, 5821 North Hills Drive AREA 2 Michael & Lynette Kithas, 6733 Riviera AREA 3 Laura Ford, 6238 Skylark Circle AREA 4 John Hadaway, 5636 Cuadalaiara Drive AREA 5 Ken & Kathy Thompson, 6109 Winter Park Drive AREA 6 Dorothv Dickerson. 6545 Wakefield Road AREA 7 Jack & Barbara Terry, 8105 Kentwood Drive AREA 8 David & Erica Darling, 6882 Rolling Ridge Drive AREA 9 David & Kristie Crownover, 7425 Continental Trail Business Landscape Winner North Hills Hospital, 4401 Booth Calloway Road CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 8 -27 -2007 Presented by: Agenda No. A.4 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. 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. CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Subject: Removal of Item(s) from Consent Agenda Council Meeting Date: 8 -27 -2007 Agenda No. A.5 CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 8 -27 -2007 Presented by: Agenda No. B.0 Subject: 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. CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 8 -27 -2007 Presented by: Agenda No. B.1 Subject: Approval of Minutes of the August 3 -4, 2007 Budget Work Session Recommendation: To approve the minutes of the August 3 -4, 2007 Budget Work Session. MINUTES OF THE BUDGET WORK SESSION OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, HELD AT GARRETT CREEK RANCH CONFERENCE CENTER, 270 PRIVATE ROAD 3475, PARADISE, TEXAS — AUGUST 34, 2007 Present: City Council: Oscar Trevino Suzy Compton John Lewis Ken Sapp Tim Barth David Whitson Scott Turnage Tim Welch Mayor Mayor Pro Tem, Council Place 3 Council, Place 1 Council, Place 2 Council, Place 4 Council, Place 5 Council, Place 6 Council, Place 7 Staff: Larry J. Cunningham City Manager Ogden Bo Bass Jim Starr Karen Bostic Elizabeth Reining Patricia Hutson Larry Koonce Drew Corn Mary Edwards Patrick Hillis Mike Curtis Jennipher Castellanos Daley Lehmann Assistant City Manager Interim Assistant City Manager Managing Director Admin /Fiscal Services Assistant to City Manager City Secretary Director of Finance Director of Budget Public Information Officer Director of Human Resources Director of Public Works Public Works Management Assistant Budget Intern CALL TO ORDER Mayor Trevino called the Council Budget Work Session to order August 3, 2007 at 10:03 a.m. with all council members present. Mayor Trevino announced that the Crime Control and Prevention District Board would meet in conjunction with the City Council Budget Work Session. Mayor Trevino made opening remarks. The Mayor and each of the Council Members commented on the budget document and expressed their appreciation to Staff for the quality of the budget document and their efforts to produce a document supporting the Council's goals. Throughout the work session staff presented a PowerPoint presentation that provided an overview of the revised and proposed budgets for each fund, recommended service enhancements and highlights of the proposed 2007/2008 Capital Projects Budget. The City Manager began the presentation by highlighting the past year's accomplishments, commented on unanticipated revenues realized in 2006/2007 in sales tax, Municipal Court fines and interest rates, gave the economic outlook and advised of assumptions used to prepare the proposed budget. Council was advised that the fiscal year will end in a sound fiscal condition. Mr. Cunningham reviewed highlights of the proposed budget. The proposed budget provides for a balanced budget, maintains the same or improved level of service, a property tax rate of 57¢, provides for growth in sales taxes, Phase 3 of an increase in water and sewer rates as recommended with the Utility Rate Study and adopted by the Council in 2005, meets the goals established by the Council, provides for a competitive employee compensation plan, a few high priority service improvements, and provides for keeping costs at reasonable levels to minimize property taxes. Mayor Trevino commented that he thought it would be beneficial to show graphically the decline in the reserve balance beginning in 2001102 and how the balance had been rebuilt. Mr. Cunningham advised that a chart would be shown later in the day and that Staff can prepare a graphic. Mr. Corn gave a general overview of the General Fund Budget. Mr. Corn explained the General Fund and the departments and revenue categories included in the General Fund. A brief overview was given of the Revised 2006/2007 General Fund Revenues and Expenditures. The 2006/2007 General Fund Revenues were revised upward from the adopted level approximately 2.25% due to sales tax growth, an increase to payment in lieu of taxes, increase in fines and forfeitures and an increase in interest income. Mr. Corn discussed the revised 2006/2007 General Fund expenditures and the Pay -As- You-Go Capital Projects Reserve. Several service enhancements are proposed in the Revised 2006107 budget. Mr. Cunningham presented and discussed with Council the following proposed service enhancements: 2007 Citizen Survey, Home Fund Grant Participation, Pay -As- You -Go Improvements and "Leading the Way" Program. Mr. Curtis discussed with Council the Skid Steer Loader and improvements to Fire Station #2 driveway. Ms. Bostic discussed with Council a Pilot Municipal Wireless Network and enhancements to technology productivity. Council agreed with proceeding with a 2007 citizen survey. The 2005 survey will be used as a baseline. The follow -up survey will allow the City to measure the City's improvements and changes in residents' perceptions. Plans are to administer the survey in September and a report provided to Council in November 2007. Mr. Cunningham advised it was important to have consistency in questions in order to compare the 2007 survey to the previous survey. Councilman Barth asked to review the survey questions prior to the survey being administered. Councilman Sapp commented that he did not recall the survey containing very many open -ended questions and felt open -ended questions provided additional insight from the citizens. The Home Fund Grant Program will be administered through the Tarrant County Housing Development office and helps low income, elderly, mental lylphysically disabled, and single parents to maintain their homes. The program requires a 25% local match with a minimum match of $25,000. It is anticipated that a minimum of four homes can be repaired for an estimated match of $25,000. Councilman Sapp expressed his desire for a more aggressive program. Councilman Lewis suggested using more CDBG funds for the program. Mr. Cunningham advised that the HOME Program requires certain criteria to be met. Council concurred with the funding for the program. Fitness, Safety and Efficiency at Fire Stations — The Council concurred with the fire station enhancements. Continuing Initiatives for "Pay -As- You -Go Improvements — Council concurred with increasing the reserves in the 2006/2007 Revised Budget to fund 1) the addition of covered space to the existing Dry Storage Building at the Public Works Center, 2) a Skid Steer Loader for the Public Works Department, and 3) repair damage to Fire Station #2 driveway. Pilot Municipal Wireless Network — If the feasibility study currently underway indicates that a wireless mesh network would be cost effective, Council concurred with the implementation of a pilot network to further provide feedback regarding range, speed, reliability and what functions are worth expanding beyond a pilot program. Increase to Information Services Reserves — Council concurred with revising the budget to increase the Information Services Reserves to fund technology productivity enhancements in the proposed 2007/2008 budget. Enhancements consist of Laserfiche Workflow software for Municipal Court, Telestaff Scheduling software for Police Department, Toughbook laptops for Buildings I nspections and Streaming Video Service for the Communications Department. Council discussed the need for separate Police and Fire Telestaff Scheduling software and the additional cost. Staff will follow up with additional information and costs for the Telestaff Scheduling Software. "Leading the Way" Program — Council concurred with the implementation of a city -wide program for improving leadership and management skills. Mr. Corn presented an overview of the proposed 2007/2008 General Fund Budget. Mr. Corn discussed the history of net taxable values, changes in property value, the proposed 2007/2008 General Fund Revenues, a comparison of the adopted versus proposed General Fund Rrevenue, sales tax revenues history, the proposed 2007/2008 General Fund Expenditures, the proposed 2007108 General Fund Balance and a brief overview of the proposed 2007/2008 Service Enhancements. Mayor Trevino recessed the work session at 12:05 p.m. and called the work session back to order at 1 :10 p. m. Ms. Bostic discussed the following proposed 2007/2008 Service Enhancements with Staff responding to questions. • Show Cause Requirements — Municipal Court — Addition of a clerk and part time bailiff to address work load increases resulting from state mandates. • Document Imaging — Municipal Court — Addition of a full -time document imaging clerk to keep the imaging and scanning of documents current. • Technology Improvements — Municipal Court — Conversion of data base allowing interface with Laserfiche, Autocite and Teleworks IVR and purchase of two additional autocite units. Council questioned the number of Autocite units to traffic officers and if a previously purchase Autocite unit was considered a backup unit. Council concurred with the service enhancements discussed. Mr. Cunningham discussed the following proposed 2007/2008 Service Enhancements with Staff responding to questions: • Opening of New Library • Golf Course Equipment Replacement Councilman Sapp asked about respininglrepairing books as the collection is being moved to the new Library. Council discussed the need to continue to provide library services on the south side of the City and the commitment of previous councils to provide library services on the south side. Mayor Trevino requested that Council be provided with the minutes reflecting the commitment made by previous Councils. Council discussed the Radio Frequency Identification Device (RFID) program for the Library. The system was discussed during the Mid -Year Work Session and Council discussed revising the 2006 budget to enable the program to be implemented before the move. The Council agreed at that time that they did not support revising the 2006 Budget and requested additional information before making a decision. After discussion, Council agreed that the RFID system needed to be implemented prior to move -in. Mr. Cunningham discussed with Council the need to replace various pieces of golf course maintenance equipment. Council concurred with the City's General Fund loaning the Golf Fund the funds to replace the equipment. The Golf Course will repay the General Fund from its reserves beginning in 2012 and the City will place the maintenance equipment on a replacement schedule. Mayor Trevino asked for any additional comments or concerns from the Council on items discussed. The Council reconfirmed their consensus on all items discussed. Council reviewed and discussed the Budget Summaries. Councilman Whitson requested an explanation on the addition of lights to Tipps Cannine Hollow at Northfield Park. The Council discussed if the lights were needed and what the impact to the turf would be from the additional use. Council also discussed asking the users of the facility to pay for the lights. The consensus of the Council was for staff to communicate to the dog park users that the City will install the lights if the users will assist with the funding by raising 50 percent of the funds. Staff will also explore limiting the hours of use and closing sections of the park as needed to maintain the turf. Mayor Trevino referred to Code Enforcement's Community Cleanup program and questioned how code enforcement issues are addressed on the weekend. Staff advised that an individual works half -days each weekend and emphasis is adjusted depending on issues being addressed. Council was advised they could call Dispatch on the weekend to report violations. Council members also asked that the Police Department assist in reporting code violations and areas in need of attention by other city departments. Councilman Welch inquired as to the number of single family permits or lots being platted. Mr. Bass advised that there were 400 available lots and 248 lots with no infrastructure. Mr. Patrick Hillis, Human Resources Director, gave a brief presentation on the proposed market adjustments to the Employee Compensation Plan. Council reviewed the General Debt Service Fund. Mr. Koonce advised Council the 2007 Certified Tax Roll had been received. The effective tax rate is $.564932. Since the effective tax rate is lower than the proposed rate of $.57 a tax rate hearing will be required if Council chooses to adopt the $.57 tax rate. Mayor Trevino asked for Council consensus on the debt service, all discussions and setting the tax rate at $.57 tax. All members of the Council concurred. Mayor Trevino announced at 2:47 p.m. that he was recessing the Council Budget Work Session and calling the Crime Control and Prevention District Budget Work Session to order. After the District discussed the proposed budget, Mayor Trevino adjourned the Crime District Work Session at 3:00 p.m. and called the Council Budget Work Session back to order at 3:00 p.m. Mr. Corn gave an overview of the Park and Recreation Facilities Development Fund highlighting the revised 2006/2007 Park Fund Revenues and Expenditures and the proposed 2007/2008 Park Fund Revenues and Expenditures. Councilman Whitson commented that the six after school leaders were being removed from the budget and inquired if the program was being discontinued. Staff will follow -up with further information. Council concurred with the Park and Recreation Facilities Development Fund as presented by staff. Mr. Corn presented the budgets for the Special Revenue Funds consisting of the Promotional Fund, Donations Fund, Special Investigation Fund, Drainage Utility Fund, Gas Development Fund and Traffic Safety Fund. Proposed 2007/2008 service enhancements funded by the Gas Development Fund consist of Facade Improvement Program and Preventive Street Maintenance Program. Mr. Starr discussed the Facade Improvement Program. The program will encourage private investment in older commercial properties and projects will be overseen by an internal service committee. The program is a matching 50% grant to remove non- conforming signs, construct conforming signs and improve facades. The City will contribute $10,000 for facade improvements, $3,000 for sign replacement and $2,000 for sign removal. Estimated cost is $100,000. Mr. Corn discussed the Preventive Street Maintenance Program. The program is primarily funded in the General Fund with $100,000 to be transferred from the Gas Fund. Mr. Corn discussed the Traffic Safety Fund which was created in November 2006. Proposed service enhancements consist of funding for 3 additional motorcycles for Traffic Enforcement Enhancement and Restructuring of Police Support Services to provide for a civilian technical services supervisor. Council discussed safety concerns with the Davis Boulevard 1 Smithfield Intersection at the Post Office. Mr. Curtis explained that the Master Thoroughfare Plan has Smithfield tying in at Bridge Street and the Smithfield intersection being removed. Council continued discussion of their concerns during their discussion of the Public Works Capital Improvements Program. Councilman Sapp requested Council be provided with an update on the Traffic Safety Program. Mayor Trevino recessed the meeting at 3:40 p.m. and called the meeting back to order at 4:05 p.m. Staff presented an Analysis of the Drawdown of Reserves which reflected that the reserves were being used as intended. Mr. Corn presented the Proprietary Funds. The Enterprise Funds consisting of the Utility Fund, Aquatic Park Fund and Golf Fund were discussed with staff responding to questions from the Council. Mr. Corn discussed with Council the revised 2006/2007 Utility Fund Revenues and Expenses. The proposed 2007/2008 Utility Fund Budget and Service Enhancements were presented. The Service Enhancements for 2007/2008 consist of funds for a Waterwise Public Educatoin Program and Vibrating Compactor with Remote. The Waterwise Public Education program will teach Birdville Independent School District 5th graders about water conservation and the program will be funded with a matching grant from Tarrant Regional Water District. The City currently rents the needed compactor. The compactor is needed to meet density requirements for line trenches. Councilman Lewis questioned the reduction in salaries in Water Operations. Staff advised the reduction was the result of new hires being at a lower range then their previous incumbents and a change to the Stability Pay Policy. Mayor Trevino inquired as to the spike in performance measure for Taste and Odor Complaints in Water Operations. Staff advised that the change was a result of drought and rain conditions. Councilman Welch inquired as to the number of linear feet of 2" and 4" lines still remaining. Staff advised that there were approximately 100,000 linear feet of 2" lines and 40,000 to 50,000 linear feet of 4" lines remaining in City. The Council concurred with the Utility Fund budget as presented. Mr. Corn presented the Aquatic Park Fund and staff responded to questions from the Council. Mr. Corn highlighted the attendance history of the park and discussed the Revised 2006/2007 Aquatic Park Revenues and Expenses and the Proposed 2007/2008 Revenues and Expenses. New revenue is proposed from a coffee shop that will be located in the new Library and operated by the Aquatic Park. The program will not be subsidized by the Aquatic Fund, but if needed, from the General Fund. The Council concurred with the Aquatic Park budget as presented. Mr. Corn presented the budget for the Golf Course Fund discussing the history of rounds of golf played, the 2006/2007 Revised Golf Course Revenues and Expenditures and Proposed 2007/2008 Golf Course Revenues and Expenditures. Council concurred with the Golf Course Fund as presented. Mr. Corn presented the Internal Service Funds consisting of the Building Services Fund, Equipment Services Fund, Information Services Fund and Insurance Fund. Proposed for the Building Fund is $2,105,809 for expenses excluding the proposed service enhancement. Mr. Cunningham recapped the proposed service enhancements which were discussed earlier in the day (New Library Building Operations and Maintenance) during the General Fund portion of the budget. An increase is proposed in maintenance staff, electricity usage, equipment, supplies and services for the maintenance at the new Library. Council concurred with the Building Services Fund. Mr. Corn discussed the Revised 2006/2007 Equipment Services Revenues, the proposed 2007/2008 Expenditures and projected Fund Balance. A service enhancement is proposed to upgrade the Fuel System as mandated by Texas Commission on Environmental Quality (TCEO ). The system will replace the existing system that no longer meets TCEO requirements. Council concurred with the Equipment Services Fund. Mr. Corn discussed the proposed 2007/2008 Information Services Expenses. Proposed Technology Productive service enhancements consist of Laserfiche Workflow software for the Municipal Court, Telestaff scheduling software for the Police Department, four toughbook laptops for the Building Inspectors and Streaming Video Service. The enhancements were discussed earlier during the discussion of the General Fund. In response to an inquiry regarding the City's phone system, Staff advised that the voice mail system was scheduled for replacement next year. Mr. Corn discussed the Self- Insurance Fund highlighting the proposed 2007/2008 Expenses and the City's plan to rebuild the Fund Reserves. Council concurred with the Insurance Fund. Mayor Trevino inquired if Council had any questions and asked if they concurred with all of the Operating Budgets as presented and a tax rate of $.57. Each member of the Council reconfirmed their consensus on all Operating Budgets presented and a tax rate of $.57. Mr. Koonce advised the Council's auto reimbursement policy provides that the Finance Director is to present annually to Council the activity for the year. Mr. Koonce reported that he had verified all reimbursement forms submitted and reported that everything was within the policy guidelines. The City Council was provided with a list of reimbursements and was advised that verification is on file in the Finance Department. There were no questions from the Council. Council began a review and discussion of the Capital Projects Budget. Ms. Bostic presented and discussed with Council the following continuing Municipal Facility Projects. • Central Area NRH Library • Animal Adoption and Rescue Center Expansion Councilman Sapp asked that Council consider renaming Grand Street to Library. Ms. Bostic presented and discussed with Council the following Permanent Capital Maintenance Building Projects. ■ City Hall Carpet Replacement • City Hall Interior Painting • Records Storage Roof Replacement • Roof Repairs — for repair of roof structures not included in insurance claim. Ms. Bostic presented and discussed with Council the following proposed New Projects. ■ 820 Widening 1 City Hall Modifications ■ Concrete Repairs to Fire Station #2, 4001 Rufe Snow ■ Covered Space for Dry Materials Storage ■ Roofing Replacement 1 Repairs — replacement of roofs due to damage form April 13th hailstorm funded from insurance settlement ■ Service Center Work Area Improvements Council concurred with the 2007/2008 Municipal Facility Capital Projects. Ms. Bostic discussed the Major Equipment Capital Projects consisting of the following continuing and new projects. Continuing Projects: • Fire Engine replacement (Unit 933) • Police Mobile Video System Upgrade New Projects: • Ambulance Replacement — Medic 224 • Camera Van Replacement (Unit #551) • Cartegaph Sewer Water Software Expansion • Emergency Incident Command Vehicle Replacement • Mobile Data Computer Replacement in Fire Apparatus • Pilot Municipal Wireless network (also previously discussed during General Fund discussion) • RFID Inventory Control and Security system (also previously discussed during General Fund discussion) • Skid Steer Loader (also previously discussed during General Fund discussion) • Upgrade of Motorola Centracom Radio System In follow up to questions from the Council regarding the Cartegraph software, staff will provide additional information on the software. Council questioned why the equipment from the old existing Emergency Incident Command Vehicle could not be moved to the new vehicle. Staff will follow -up. The Council concurred with the 2007/2008 Major Equipment Capital Projects. Mayor Trevino recessed the meeting at 5:32 p.m. and called the meeting back to order at 6:27 p.m. All Council members were present as previously recorded and the following staff members present: Larry J. Cunningham, Ogden Bo Bass, Jim Starr, Karen Bostic, Elizabeth Reining, Patricia Hutson, Larry Koonce, Drew Corn, Mary Edwards, Mike Curtis and Jennipher Castellanos. Ms. Reining and Mr. Bass presented the 2007/2008 Economic Development Capital Improvements Program. Continuing projects include the Sign Removal Assistance Project and SustainablefFransit Oriented Development Project. One new project is proposed consisting of the Facade Improvement Program (also previously discussed during the Special Revenue Funds portion of the budget). Mr. Curtis presented two continuing and two new Public Works Economic Development Projects. The two continuing projects are Boulevard 26 Intersection Improvements and the Commercial Redevelopment Program. New projects are Boulevard 26 Intersection Improvements at Rodger Line Road and Rufe Snow 1 Glenview Intersection Concept Study. Council concurred with the 2007/2008 Economic Development Capital Improvements Program. Mr. Curtis presented the 2007/2008 Public Works Capital Improvements Program. Mr. Curtis reviewed accomplishments for fiscal year 2006/2007 and the street and utility projects completed in fiscal year 200612007. An update was given on each of the continuing street projects. Mr. Curtis highlighted 11 new street projects, 1 continuing drainage project, 2 new drainage projects, 11 continuing and ten new utility projects. Mayor Trevino requested an update on the restriping of Bursey Road. Mr. Curtis provided an update of the project advising that Staff is currently investigating the site visibility and other concerns that have been expressed by the citizens. The project has been delayed while staff investigates the citizen concerns. Council discussed the potential signalization project at Davis Boulevard and Bridge Street that would address the safety issue at the Smithfield 1 Davis 1 Post Office intersections. Council was advised that staff was investigating options. Councilman Lewis suggested that the Smithfield 1 Davis intersection be temporarily closed to determine the change in traffic pattern. Mayor Trevino suggested contacting the post office and requesting that they change the traffic flow to one way in and out. This item was also previously discussed during the General Fund presentation. Councilman Lewis asked Staff to investigate installing sidewalks on Precinct Line Road from the newest Thornbridge Addition to North Tarrant. Mayor Trevino recessed the meeting at 7:58 p.m. Mayor Trevino called the work session back to order on August 4, 2007 at 8:00 a.m. with all council members present as previously recorded and the following staff members present: Larry J. Cunningham, Ogden Bo Bass, Jim Starr, Karen Bostic, Elizabeth Reining, Patricia Hutson, Larry Koonce, Drew Corn, Mary Edwards, Mike Curtis, Jennipher Castellanos, and Vickie Loftice. Ms. Loftice, Director of Parks and Recreation, presented the budget for the 2007/2008 Park and Recreation Development Capital Projects briefly reviewing the history and accomplishments of the one -half cent sales tax since inception and highlighting the proposed revenues and expenditures for 2007108, completed projects, continuing projects and new projects. During discussion of the Founders and Legacy Recognition Program, Council requested that Congresswoman Granger be provided with a picture of the dedication of the park. Several Council members commented on requests they have received for additional parking at Linda Spurlock Park. Staff advised that they were not aware of any neighborhood concerns and that there was a considerable amount of parking available on the streets. After discussion, it was suggested by the Council that the on- street parking be striped to provide a more efficient use. Ms. Loftice discussed the recommendation of the Park and Recreation Board to install lighting at Tipps Canine Hollow with the users of the park being asked to pay for one - half of the costs. Ms. Loftice discussed the Central Area Recreation Center. The project design is scheduled to begin in October with an estimated completion date of October 2010. The project will receive funding from 1/2 cent sales tax and TIF #2. Proposed amenities for the facility were discussed. Council discussed the importance and their desire to receive citizen input on the design of the facility and letting the citizens know that Council heard their input. It was suggested by a member of the Council to change the name of the project from Central Recreation Center to Recreation Center. The consensus of the Council was to change the project name to the Recreation Center. Councilman Welch asked for an update of Blue Thunder Baseball's use of Cross Timbers Park. Ms. Loftice updated Council on Blue Thunder and commented that their use of the current facility may not be sustainable for them because of the facility's location and that they would be evaluating the best location. The Council concurred with the Capital Projects budget for the Park and Recreation Development Fund. Ms. Loftice presented the 2007/2008 NRH20 Waterpark Capital Projects budget reviewing the operating history of the park, the completed projects and new projects. Completed projects are Cabanas, Barrel Roll Canopy and Mat Racer. New projects are Library Coffee shop, Dispatch System for Accelerator, General Facility Improvements, Parking Lot, Picnic Area, Restrooms and Hopper Expansion and Third Phase Attraction. Mayor Trevino asked for an explanation of cabanas and rentals and feedback from people who have rented. There was discussion on the feasibility of implementing a rental fee for the picnic area. Staff will review further. Council concurred with the NRH20 Waterpark Capital Projects budget. The City Council Members reconfirmed their consensus with all budgets and funds as presented and setting the tax rate at $.57. Mayor Trevino announced at 9:06 a.m. that Council would adjourn into Executive Session as authorized by Section 551.074 of the Texas Government Code for Personnel Matters to discuss Council appointed positions Mayor Trevino called the meeting back to order at 10:28 a.m. with all Council members present as previously recorded and the following staff members present: Larry J. Cunningham, Ogden Bo Bass, Karen Bostic, Elizabeth Reining, Drew Corn, Mary Edwards and Patricia Hutson. Mr. Corn reviewed the budget calendar and dates for the upcoming public hearings. Mayor Pro Tem Compton referenced the previous suggestion by a member of council to rename Grand Street to Library and advised she was also supportive of the request. Mayor Trevino adjourned the work session at 10:39 a.m. APPROVED: Oscar Trevino — Mayor ►:raIONI Patricia Hutson — City Secretary CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 8 -27 -2007 Presented by: Agenda No. B.2 Subject: Approval of Minutes of August 13, 2007 City Council Meeting Recommendation: To approve the minutes of the August 13, 2007 City Council Meeting. MINUTES OF THE WORK SESSION AND REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, HELD IN THE CITY HALL, 7301 NORTHEAST LOOP 820 —AUGUST 13, 2007 WORK SESSION The City Council of the City of North Richland Hills, Texas met in work session on the 13th day of August, 2007 at 6:00 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, Place 3 John Lewis Council, Place 1 Ken Sapp Council, Place 2 Tim Barth Council, Place 4 David Whitson Council, Place 5 Scott Turnage Council, Place 6 Tim Welch Council, Place 7 Staff Members: Larry J. Cunningham City Manager Jim Starr Interim Assistant City Manager Ogden Bo Bass Assistant City Manager Karen Bostic Managing Director Administrative /Fiscal Services Patricia Hutson City Secretary Monica Solko Assistant City Secretary George Staples City Attorney Mary Edwards Public Information Officer Elizabeth Reining Assistant to City Manager John Pitstick Director of Planning & Development Larry Koonce Finance Director Mike Curtis Public Works Director Jimmy Perdue Chief of Police Eric Wilhite Chief Planner Drew Corn Budget Director Vickie Loftice Director of Parks and Recreation Debbie York Environmental Resources Coordinator Jamie Brockway Purchasing Manager fall to (-)rrlar Mayor Trevino called the work session to order at 6:01 p.m. Mayor Trevino recognized Brandon Lee, recipient of the "Mayor for a Day" donated by the City and purchased at a fundraiser held by the Holiday Heights Elementary School. A.1 Discuss Items from Regular City Council Meetinq There were no items discussed. A.2 IR 2007 -096 Red Light Enforcement Update Jimmy Perdue, Chief of Police, presented a PowerPoint presentation updating Council on the Automated Traffic Signal Control Red Light Camera (R LC) Program. Intersection Selection Criteria: • Number of accidents • Volume of traffic • Complaints from citizens • Officers knowledge • Visual evaluation over time period Current Operational Red Light Camera Locations: • Southbound Rufe Snow at Mid - Cities • Northbound & Southbound Rufe Snow at Dick Lewis Future Red Light Camera Locations: • Eastbound Mid - Cities at Davis • Southbound Davis at Lola • Northbound Davis at Harwood • Northbound & Southbound Davis at Maplewood • 1 -820 access road at Rufe Snow Dr. Violation Process: • Violation detected by system • Violation reviewed by Red flex • Violation reviewed by NRH Police Officer • Violation mailed to owner of vehicle — Must be mailed within 30 days — Presumption of receipt after 5 days • Upon receipt of notice of violation — Pay $75 fine by mail or credit card on -line — Log onto web site (www. photonotice.com) — Request appeal hearing Reasons for Administrative Dismissal: — Uncontrollable Factors • Obstruction (Plate /vehicle) • Extended vehicle • Weather /Nature • Yellow with Red light — Redflex Rejects • Image missing • Miscellaneous Camera Issue • Plate not in frame • Rear plate camera blurry • Rear plate flash inappropriate • Scene Image flash Inappropriate • Scene Image no flash — Police Rejects • No video • Vehicle on or passed stop line Traffic Safety Fund: • Allowed expenses from gross revenue — Purchasing, leasing and maintaining photographic equipment — Installing and operating the system including general upkeep and processing of fines • 50% of net revenue sent to State of Texas for Regional Trauma Centers • City retain portion to be used exclusively for — Automated signal enforcement — Public traffic or pedestrian safety — Intersection improvements — Traffic enforcement Public Education: Information about RLC program on City and PD web page — http:llwww.nrhtx.com Information has been included in City newsletter Press release issued each time an intersection is added There were no questions from the Council. A.3 I 2007 -097 Review of PEACE Program Debbie York, Environmental Resources Coordinator, presented a PowerPoint presentation updating Council on the PEACE Program. The PEACE program is an umbrella program that stands for Public participation, Education and, Assistance for a Cleaner Environment. The purpose of these programs is to combine similar programs and resources to provide assistance to residents when needed; to help prevent neighborhood decline; to educate citizens & businesses on code related issues; to improve the aesthetics and ultimately the quality of life in our community; and to gain community involvement. ♦ Neighborhood LOCKS Program — Workshops on code requirements — Walk through of neighborhoods ♦ Litter NOT Program — Identify constantly littered public areas — Monthly litter cleanups — Adopt -A -Spot volunteers ♦ Neighborhood Initiative Program — Projects completed — 222 — Donations received - $13,207 — Emergency Repair Program - $90,000 ♦ Community Development Block Grant — Federal Block Grant from HUD — Covers roof, foundation, plumbing, electrical and weatherization improvement projects — 1 project completed in 2007, 3 in progress and 7 on the waiting list ♦ Tarrant County HOME Funds — 25% match required on a minimum of $100,000 — Minimum of $1,000 and Maximum of $23,000 per house for repairs There were no questions from the Council. A.4 Adjournment Mayor Trevino announced at 6:39 p.m. that the Council would adjourn to the regular Council meeting. REGULAR COUNCIL MEETING A.0 CALL TO ORDER Mayor Trevino called the meeting to order August 13, 2007 at 7:00 p.m. I ;T01 O Wy=141 4 Present: Oscar Trevino Suzy Compton John Lewis Ken Sapp Tim Barth David Whitson Scott Turnage Tim Welch Staff: Larry J. Cunningham Ogden Bo Bass Jim Starr Patricia Hutson Monica Solko George Staples Mayor Mayor Pro Tem, Council Place 3 Council, Place 1 Council, Place 2 Council, Place 4 Council, Place 5 Council, Place 6 Council, Place 7 City Manager Assistant City Manager Interim Assistant City Manager City Secretary Assistant City Secretary Attorney Mayor Trevino recognized Brandon Lee, recipient of "Mayor for a Day" donated by the City and purchased at a fundraiser held by the Holiday Heights Elementary School. A.1 INVOCATION Councilman Barth gave the invocation. A.2 PLEDGE OF ALLEGIANCE Brandon Lee, Mayor for the Day led the pledge of allegiance. A.3 SPECIAL PRESENTATION(S) AND RECOGNITION(S) IR 2007 -099 DISTINGUISHED BUDGET PRESENTATION AWARD FOR FISCAL YEAR 2006/2007 Charles S. Cox, Director of Finance at the City of Farmers Branch and President of Government of Finance Association presented the Distinguished Budget Award for Fiscal Year 2006/2007 to Drew Corn, Director of Finance. A.4 CITIZENS PRESENTATION Mrs. Laverne O'Steen, 8429 Emerald Circle, advised that in regards to Lot 1, Block 4 Emerald Lakes, she had requested at previous citizens presentations that her questions be answered in writing and that she was still waiting. Mr. Bo Bass, Assistant City Manager, advised of the responses the City had provided. None. A.5 REMOVAL OF ITEM(S) FROM THE CONSENT AGENDA B.0 APPROVAL OF CONSENT AGENDA ITEMS ❑ PPRnvPn B.1 APPROVAL OF MINUTES OF JULY 23, 2007 CITY COUNCIL MEETING B.2 PU 2007 -038 INTER -LOCAL AGREEMENT WITH THE COOPERATIVE PURCHASING NETWORK — RESOLUTION NO. 2007 -049 B.3 FP 2007 -02 CONSIDERATION OF A REQUEST FROM OTIS LEE OF CIVILWORKS ENGINEERING TO APPROVE A FINAL PLAT OF LOTS 1 R, 2- 4, BLOCK 1, DJ ANDERSON ADDITION, (LOCATED IN THE 8500 BLOCK OF DAVIS BLVD - 5.049 ACRES). B.4 FP 2007 -09 CONSIDERATION OF A REQUEST FROM MARK COMIS OF ROYAL BUILDING CORPORATION TO APPROVE A FINAL PLAT OF LOTS 1 -2, BLOCK 1, CREEKSIDE ESTATES, (LOCATED ON SIMMONS ROAD AND STEWART DRIVE - 0.8768 ACRES). COUNCILMAN TURNAGE MOVED TO APPROVE THE CONSENT AGENDA. COUNCILMAN LEWD SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7 -0. PUBLIC HEARINGS CA ZC 2007 -09 PUBLIC HEARING AND CONSIDERATION OF A REQUEST FROM JOHNSON DIVERSIFIED ENTERPRISES, INC. TO APPROVE A ZONING CHANGE FROM "C -1" COMMERCIAL TO "R -PD" RESIDENTIAL - PLANNED DEVELOPMENT (LOCATED IN THE 6800 BLOCK OF HIGHTOWER DRIVE - 22.30 ACRES) - ORDINANCE NO. 2942 Mayor Trevino opened the public hearing and called for the applicant to come forward. Ben Johnson, 1712 Oakland Drive, owner of Johnson Diversified Enterprises, Inc. came forward. He presented a PowerPoint presentation and gave Council a handout highlighting the development. Eric Wilhite, Chief Planner, presented the item. The applicant, Ben Johnson of Johnson Diversified Enterprises, Inc., is requesting approval of a zoning change from "C -1" Commercial to "R -PD" Residential Planned Development. The site is 22.29 acres that is located near the south -east intersection of Rufe Snow Drive and Hightower Drive. This request represents planned development for residential that is over the ten (10) acre maximum size for a RI -PD (residential infill planned development) and therefore it is not an RI -PD. The site development proposal includes a unique lot layout and housing product in a residential community development that creates a complete living environment thru the use of streetscape and site improvements and amenities. The sites primary access will be from Hightower Drive a C4U collector with 68 feet of right of way. There will also be emergency access to the west by an emergency access easement connecting to and through the adjacent commercial properties to Rufe Snow. The Planning and Zoning Commission recommended approval with a 5 -0 vote with the following conditions: 1) Remove stucco and flat roofs be removed from the design guidelines. 2) Staggered trees with minimum 3 inch caliper on 20 feet spacing along the 30 feet buffer easement area to south. Mayor Trevino called for anyone wishing to speak in favor of the request to come forward. Rick Anthony, 6941 Driffield Circle, came forward. He expressed his concerns with flooding in his neighborhood and was hopeful that with the development of project it would solve the drainage problems. Mayor Trevino thanked Mr. Anthony for his comments and stated that drainage was not being discussed at this time. Drainage would be discussed during the platting stages of the project. Mayor Trevino asked Mike Curtis, Director of Public Works to explain the stages of process to Mr. Anthony. Mayor Trevino called for anyone wishing to speak for or against the request to come forward. There being no one wishing to speak, Mayor Trevino closed the public hearing and called for the motion. COUNCILMAN WELCH MOVED TO APPROVE ZC 2007 -09 WITH THE P&Z RECOMMENDED CONDITIONS (1. REMOVE STUCCO AND FLAT ROOFS BE REMOVED FROM THE DESIGN GUIDELINES 2. STAGGERED TREES WITH MINIMUM 3 INCH CALIPER ON 20 FEET SPACING ALONG THE 30 FEET BUFFER EASEMENT AREA TO SOUTH). COUNCILMAN SAPP SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7 -0. 1, W=124 124 11L4 "= ,_II] =021 =1K01,IT11:424 11111 ox1; Items to follow do not require a public hearing. No items for this category No items for this category 101= 111111617felN =11] GENERAL ITEMS F.1 GN 2007 -065 SETTING DATE FOR PUBLIC HEARINGS FOR 2007 -2008 CITY BUDGET, PARKS AND RECREATION FACILITIES DEVELOPMENT CORPORATION AND CRIME CONTROL AND PREVENTION DISTRICT BUDGETS APPROVED Drew Corn, Budget Director, presented the item. It is necessary for City Council to set public hearings on the proposed 2007 -2008 City Budget, proposed projects and operations of the Park and Recreation Facilities Development Corporation, and the Crime Control and Prevention District budgets. A published notice will be required for each public hearing per the City Charter and State law. Each hearing is set for August 27, 2007 beginning at 6:15 p.m. for the Park and Recreation Facilities Development Corporation, 6:30 p.m. for the Crime Control and Prevention District, and 7:00 p.m. for the City Budget. MAYOR PRO TEM COMPTON MOVED TO APPROVE GN 2007 -065 TO SET THE DATE FOR THE PUBLIC HEARINGS BEGINNING AT 6:15 P.M. FOR THE PARK AND RECREATION FACILITIES DEVELOPMENT CORPORATION, 6:30 P.M. FOR THE CRIME CONTROL AND PREVENTION DISTRICT, AND THE ANNUAL CITY BUDGET AT 7:00 P.M. ON AUGUST 27, 2007. COUNCILMAN WHITSONN SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7 -0. F.2 GN 2007 -066 SETTING DATES FOR PUBLIC HEARING ON PROPOSED TAX RATE AND RECORD VOTE ON PLACING THE TAX RATE ADOPTION OF THE SEPTEMBER 10, 2007 COUNCIL MEETING ❑ PPRC]VPn Drew Corn, Budget Director, presented the item. In follow up to the 2007 -2008 Budget Work Session, it is necessary to begin the notice and public hearing procedures to establish a tax rate for the next fiscal year in accordance with the City Charter and State law. At the Work Session, Council consensus was to set the tax rate at 57¢, which is the same tax rate as the current year. If approved, this will be the 15th consecutive year the tax rate has been 57¢. Per Senate Bill 567 of the 79th Texas Legislative Session, if a municipality imposes a tax rate that exceeds the effective tax rate, the municipality is required to have a record vote to place a proposal to adopt the tax rate on the agenda of a future meeting as an action item. The effective tax rate is 56.4932¢ which is lower than the proposed tax rate of 57¢. As a reminder, the effective tax rate is the rate that would be applied to the July 2007 property tax values that would provide the same amount of revenue as the current tax year. State law further requires that a municipality hold two public hearings if the proposed tax rate exceeds the effective tax rate. The first tax rate public hearing is proposed to be held on August 27, 2007, a regularly scheduled Council Meeting with the second public hearing proposed for a Special Council Meeting on August 30, 2007. State law requires that a tax rate be adopted no sooner than 3 days after the second public hearing and no later than 14 days after the second public hearing. It is proposed that the tax rate be adopted at the September 10, 2007 Council meeting. COUNCILMAN LEWIS MOVED TO APPROVE GN 2007 -066 THAT A RECORD VOTE BE TAKEN TO PLACE THE ADOPTION OF THE TAX RATE OFF 57¢ ON THE SEPTEMBER 10, 2007 COUNCIL AGENDA, AND SET THE FIRST PUBLIC HEARING ON THE 57¢ TAX RATE FOR MONDAY, AUGUST 27, 2007 DURING THE REGULAR 7:00 P.M. CITY COUNCIL MEETING AND SET THE SECOND PUBLIC HEARING ON THE 57¢ TAX RATE FOR THURSDAY, AUGUST 30, 2007 DURING A SPECIAL 6:00 P.M. CITY COUNCIL MEETING. COUNCILMAN TURNAGE SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7 -0. F.3 INFORMATION AND REPORTS IR 2007 -1 00 TRTC: THE FUTURE OF TRANSPORTATION —PRESENTED BY THE HONORABLE MAYOR KEN SHETTER, CITY OF BURLESON Ken Shetter, Mayor of the City of Burleson and Tarrant Regional Transportation Coalition board member, presented a PowerPoint presentation updating Council on what the Tarrant Regional Transportation Coalition (TRTC) is doing to prepare for the future transportation needs of North Texas. Presentation included a population forecast for North Texas and what the continuing boom in population means to our various transportation needs, projects that will alleviate some of the growing congestion problems, including the NE Loop 820 expansion and budgeting concerns for projects. F.4 INFORMATION AND REPORTS Councilman Turnage made the following announcements. The City of North Richland Hills will display its Artists at Work employee art exhibit August 17th through August 25th in the Recreation Center Assembly Room. For more details, please call 817- 427 -6614. The Companies in Action Volleyball Tournament will be held on Saturday, August 18th, at the NRH Recreation Center. Local businesses interested in competing in this event should call 817- 427 -6600 for more details. Richland Tennis Center is celebrating its 10th Anniversary from 1:30 p.m. to 5 p.m. on Sunday, August 26th. There will be free tennis drills, refreshments, door prizes and more. For more information, please call 817- 427 -6680. Kudos Korner - Paul Faulks, Public Works Utility Department. A phone call was received from a resident praising Paul for responding to a sewer problem so quickly. The resident said Paul was very professional and pleasing in the manner in which he resolved the problem. F.5 ADJOURNMENT Mayor Trevino adjourned the meeting at 8:34 p.m. Oscar Trevino — Mayor ►=ri11 =iii Patricia Hutson, City Secretary CITY OF NORTH RICHLAND HILLS Department: Finance Presented by: KSpooner /LKoonce Council Meeting Date: 8 -27 -2007 Agenda No. B.3 Subject: PU 2007 -040 Award Proposal No. 07 -1384 for Data and Telephone Cable Installation at the New Library to Premier Communications in the amount of $35,608.36 In the approved construction budget for the new library, funds were appropriated to provide data and telephone services to the new facility. Notice of the City's intent to accept proposals was advertised in local newspapers, as required by State statute, and posted on the City's website. Twenty -four (24) vendors were contacted and requested to participate in this proposal process. Proposal specifications were made available to seventeen (17) firms. There was a mandatory pre - proposal conference that was held and eleven (11) companies were represented at this meeting. Five (5) bids were received from the following vendors who had attended the mandatory pre - proposal conference: Avid Business Network DMI Technologies ieSmart Systems Premier Communication Ram Comm Inc. In the original request for proposals the City requested that each company submit the cost of network switching equipment, cabling and labor to provide data and telephone services to the New Library. In the evaluation of the proposals Information Services determined that none of the vendors were certified to install the proposed network switching equipment. As a result, the decision was made to recommend only the installation of cabling for the system. The network switching equipment will be bid and purchased separately in the near future. Premier Communication submitted the lowest proposal for the cable installation which includes all necessary materials, labor, supervision and warranties. Premier Communications has excellent references and is recommended by Information Services and the Purchasing Department for approval. Company Proposal Premier Communications $351608.36 ieSmart Systems $39,520.00 Ram Comm Inc $42,479.60 Avid Business Networks $45,358.38 DMI Technologies $45,534.08 Recommendation: Award Proposal No. 07 -1384 for Data and Telephone Cable Installation at the New Library to Premier Communications in the amount of $35,608.36 CITY OF NORTH RICHLAND HILLS Department: Finance Presented by: MCurits/LKoonce Council Meeting Date: 8 -27 -2007 Agenda No. B.4 Subject: PU 2007 -039 Authorize to Continue the Purchase of Badger Water Meters and Telemetric Devices and Price Increases From Atlas Utility Supply Company through January 31, 2008 Since 1992 the City of North Richland Hills has used a telemetric water meter reading system. The telemetric system consists of a transponder that is installed on the water meters. This system allows meters to be read from a van with an on -board computer. This is a very efficient and accurate method of reading meters. The City currently has a ten -year ongoing meter replacement program to ensure the accurate measurement of water flow usage. Approximately 2,000 of the 20,300 total meters and telemetric devices are replaced annually. City Council has appropriated $300,000 annually in the Utility CI P budget for the replacement of water meters and telemetric devices. Badger Meter hardware and software has been used since the inception of the telemetric program in 1992. The Badger meter and telemetric device is the only unit compatible with the Badger computer system. Badger Meter extends exclusive territories to distributors of their meters and accessories. Atlas Utility Supply is the only authorized distributor in our area. Atlas is a local company that has provided good service, met all specifications and made deliveries within the requested time. They have adequate inventory on hand to supply the City's meter requirements and a knowledgeable staff to assist with inquiries regarding meters and telemetric devices. Atlas is the sole source for purchasing the Badger water meters and telemetric devices in this area. They have submitted the attached price increase in effect through January 31, 2008 on the Orion product line (newest technology) that we began using in 2005. Atlas cites increases in the price of copper and brass as reasons for increases in pricing. The attached pricing history illustrates how the City has fiscally benefited from the change to the new technology in 2005, and kept that pricing for the past two years. Staff will renegotiate the prices in January. As the spreadsheet indicates, most of the city's purchases are 3/" (residential) meters and transponders. The increase in 3/" meter prices is 30 %, $26.50 to $34.50. The increase in 3/" transponder prices is 3 %, $112 to $115. The approximate dollar increase for all meters purchased is $25,000 or about 12 %. The approximate dollar amount to be spent between now and January 31, 2008 is $160,000. Any purchase exceeding $25,000 requires Council approval according to City Purchasing Policies. Recommendation: Authorize PU 2007 -039 to Continue the Purchase of Badger Water Meters and Telemetric Devices and Price Increases From Atlas Utility Supply Company through January 31, 2008. Badger Water Meters and Telemetric Devices 1" Meter $71.26 $74.82 1" Transponder $124.70 $130.94 1 ' /2" Meter $178.88 $ 1 87.83 1 '/2" Transponder $147.35 $154.72 2" Meter $254.80 $267.54 2" Transponder $147.35 $154.72 Total $ ORION Units Increase Requested Req uested TRACE TRACE ORION Pricing 1998 Sep -04 New Jun -07 thru thru Product thru Aug -04 Apr -07 2005 -2007 Jan -08 314" Meter $24.49 $25.71 $26.50 $34.50 314" Transponder $124.70 $130.94 $112.00 $115.00 1" Meter $71.26 $74.82 1" Transponder $124.70 $130.94 1 ' /2" Meter $178.88 $ 1 87.83 1 '/2" Transponder $147.35 $154.72 2" Meter $254.80 $267.54 2" Transponder $147.35 $154.72 $87.72 $103.50 18% 240 $3,787.20 $112.00 $115.00 3% 0 $0.00 $218.51 $261.00 19% 0 $0.00 $118.00 $121.00 3% 0 $0.00 $298.22 $367.00 23% 60 $4,1 26.80 $118.00 $121.00 3% 0 $0.00 $25,194.00 Total $ Units Increase Requested Purchased Based on Percentage Last Units Increase 12 Months Purchased 30% 1728 $13,824.00 3% 1152 $3,456.00 $87.72 $103.50 18% 240 $3,787.20 $112.00 $115.00 3% 0 $0.00 $218.51 $261.00 19% 0 $0.00 $118.00 $121.00 3% 0 $0.00 $298.22 $367.00 23% 60 $4,1 26.80 $118.00 $121.00 3% 0 $0.00 $25,194.00 QUOTATION vm.,%S L " HLITY SUPPLY CONIPANY �M CARSON,,� � KfJT Fq,)R G W(AVIJ 1,1PINA -,"'(r117-`2tl 2 12-5 1014 ial"64ada Sutil It vo) TTI C',ity of North Richland Hills Badger Meter Orion Quotation 6/15/07 - 01/31/08 QUANTITY DESCRIPTION PRICE Each 5/8" x 3,14" M-25 Badger Meter Cubic Feet with 149.50 RTR and Pit Orion Transmitter with 3' Lead. Each I " M-70 Badger Meter Cubic Feet with RTR and Pit 218.50 Orion Transntitter with 3" Lead Each 1 1/2'" M -120 Badger Meter Cubic Feet with RTR 382.00 and Pit Orion'rransmitter with 3' Lead Each 2"M-170 Badger Meter Cubic Feet with RTR and 488.00 P,it Orion Transmitter with 3" Lead Each 518" x;314" " M -25 or I " M -70 WI and Pit On on 115.00 Transmitter [Only] with YL,cad Each 1 1/2 " M-120orT' M-170 RTR and Pit Orion 121.00 Transmitter [Only] with 3" Lead ..�.--Tjmm 4545 W. Brown Deer Road Milwaukee, Wisconsin 53223 P.U. Box 245036 Milwaukee, WVism. nsin 43224-9536 (414) 355-0400 wr June 22, 2007 City of North Richland Hills Attm Candy Ray P 0 Box 820609 North Richland Hills, TX 76182-0609 Dear Ms. Ray: This letter is to advise that Atlas Utility Supply is our exclusive Utility Products Distributor for the City of North Richland Hills, TX. If you have any further questions please contact us at 800-876-3837 or bids@badgermeter.corn. Sincerely, BADGER METER, INC. ZJ V Theresa M, Szafranski Assistant Secretary tsm cc, Brad Johnson Glen Lohman CITY OF NORTH RICHLAND HILLS Department: Communications Council Meeting Date: 8 -27 -2007 Presented by: Kyle Spooner /Mary Edwards Agenda No. B.5 Subject: PU 2007 -041 Award the Purchase of Video Recording and Broadcasting Equipment to Visual Interactive Dynamics in the amount of $34,890.00. One of the key services Citicable provides to the citizens of North Richland Hills is the broadcasting of City Council Meetings and Planning & Zoning Meetings. The existing equipment that is used to record and broadcast these meetings is more than 10 years old. Over the last few years the equipment has become less reliable. The cameras often have problems focusing and we have experienced problems with the controllers and other equipment in the Citicable Control Room. Replacing the aging equipment with new technology will increase the quality and reliability of the broadcasts and will ensure the continuation of this important service to our community. A staff committee was assembled to evaluate options and find the most cost effective solution for this project. The committee included Managing Director Karen Bostic, Information Services Director Kyle Spooner, City Secretary Patricia Hutson, Purchasing Manager Jamie Brockway, Citicable Coordinator Ronnie Sisk and Public Information Officer Mary Edwards. The committee solicited formal proposals for Video Recording, Editing and Publishing, Automated Voting, Minutes, Attendance System and Video Streaming Services for the City Council Chambers. All of the proposals received came in significantly over budget and were formally rejected at the May 29, 2007 City Council Meeting. Since May, the committee has revised the scope of the project to focus on the replacement of the critical video recording and broadcasting equipment. This equipment includes: • 4 cameras to replace the existing cameras in the Council Chambers. One of these cameras is a higher resolution camera, which will significantly improve the display of the planning and zoning maps that are often shown during meetings. • An output board to allow the map camera, projector and PC to interface properly. • A controller that allows staff in the control room to remotely move the cameras (pan, tilt and zoom). • A master switch e r/control station which allows staff to preview and select what shots go "on air." This station also allows staff to add the agenda number and description to the bottom of the screen. Requests for quotes were received from four (4) of the States Catalog Information System Vendors (CISV) with the lowest being submitted by Visual Interactive Dynamics of Houston. The State's CISV program allows Cities to purchase technology items through State approved vendors. This process requires that we request quotes from at least three CIS Vendors. The committee recommends purchasing this equipment from Visual Interactive Dynamics for a total cost of $34,890.00. The current year budget includes $86,712 for equipment upgrades in the City Council Chambers. Other improvements being planned by the committee include replacing the monitors on the Council dais, adding laptop docking stations, replacing the microphones, replacing the City Secretary's recording equipment, replacing the map table, upgrading cables and wiring, and upgrading the presentation equipment. These will be provided through other bids. Recommendation: Award the Purchase of Video Recording and Broadcasting Equipment to Visual Interactive Dynamics in the amount of $34,890.00. Digital Visual Interactive Item Description Resources ❑ namics Texas Media Media Specialist 1 Sony Analog AnyCast AVVSG 500 video switcher $16,444.00 $15,600.00 $16,206.00 $15,836.00 and master control station 1 Sony Remote Control Unit RMBR300 (used to $1,200.00 $1,150.00 $1,200.00 $1,188.00 pan, tilt and zoom the cameras) 3 Sony BRC300 Cameras $10,050.00 $9,660.00 $9,927.00 $9,947.28 1 Sony BRCH700 Camera (It is a higher resolution camera which will improve the display quality for $7,495.00 $7,050.00 $7,850.00 $7,420.88 he maps and other documents) HFBK XG1 output Board (for integrating with the $1,500.00 $1,430.00 $1,600.00 $1,485.00 Projector and PC) Shipping and Handling charges nla nla $225.00 nla Total for equipmeni $36,689.00 $34,890.00 $37,008.00 $35,877.16 Delivery Time 10 days 30 days 5-7 days 30 days The current year budget includes $86,712 for equipment upgrades in the City Council Chambers. Other improvements being planned by the committee include replacing the monitors on the Council dais, adding laptop docking stations, replacing the microphones, replacing the City Secretary's recording equipment, replacing the map table, upgrading cables and wiring, and upgrading the presentation equipment. These will be provided through other bids. Recommendation: Award the Purchase of Video Recording and Broadcasting Equipment to Visual Interactive Dynamics in the amount of $34,890.00. CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Subject: PUBLIC HEARINGS Council Meeting Date: 8 -27 -2007 Agenda No. C.0 CITY OF NORTH RICHLAND HILLS Department: Budget Council Meeting Date: 8 -27 -2007 Presented by: Drew Corn Agenda No. CA Subject: CN 2007 -068 Conduct Public Hearing on Proposed 2007 -2008 Budget The budget work session to review the proposed 2007 -2008 budget was held August 3- 4, 2007. At the work session, City Council reviewed the budgets for all operating funds, capital project funds, and the budgets for the Crime Control & Prevention District and the Park & Recreation Facilities Development Corporation. Subsequent to the work session, the changes City Council requested have been included in the 2006 -2007 Revised Budget and in the 2007 -2008 Proposed Budget. The 2007 -2008 Proposed Annual Operating Budgets for all funds are as follows: General Fund $37,192,066 Debt Service Fund 8,437,973 Parks & Recreation Fund 5,599,664 Crime Control District 4,946,750 Promotional Fund 233,101 Donations Fund 141,153 Special Investigation Fund 367,221 Drainage Utility Fund 698,766 Gas Development Fund 608,888 Traffic Safety Fund 1,425,272 Utility Fund 24,242,027 Aquatic Park Fund 4,416,361 Golf Course Fund 2,456,467 The Proposed Capital Improvements Budget totals $31,643,521. The breakdown between project categories is as follows: Street & Sidewalk Projects $11,261,458 Drainage Projects 975,000 Utility Projects 4,193,205 Parks & Recreation Projects 1,759,285 Aquatic Park Projects 610,000 Municipal Facility Projects 6,843,641 Major Capital Equipment 1,663,022 Economic Development Projects 3,555,000 CIP Personnel 782,910 Since the presentation of the proposed Capital Budget on August 3rd and 4th, there have been some minor revisions. The ancillary equipment for the ambulance and incident command vehicle have been reduced $753 and $6,759, respectively, as was discussed in the FY 2007 -2008 Budget Work Session Follow -up IR. The signal, street and utility improvements at Holiday Lane and Dick Lewis Drive have increased in costs by $23,600 to include the City's portion of engineering. The project for drainage improvements at Iron Horse Golf Course will be completed by the end of fiscal year 2008 in the amount of $500,000. At the work session the project was shown to be completed over the next two fiscal years with only $75,000 expended in 2008. In addition this project will include the cost of a drainage master plan as well as the two high - priority drainage improvements but the overall project budget will remain unchanged. The notice of public hearing was published in the Star Telegram newspaper in accordance with State law and the City's Charter. The public hearing for the 2007 -2008 Annual Budget was advertised to be held during the regular 7:00 p.m. City Council meeting, August 27, 2007. The notice included the additional statement required by recent legislation that read as follows: "This budget will raise more total property taxes than last year's budget by $948,961 or 4.94 %, and of that amount $538,725 is tax revenue to be raised from new property added to the tax roll this year." The 2007 -2008 Proposed Budget is based on continuing the 57¢ tax rate for the 15th year. The proposed budget document was filed with the City Secretary and at the City Library for public viewing and was made available online at the City website www.nrhtx.com on July 30, 2007. It will be recommended for adoption at the September 10 Council meeting. At the August 3 -4, 2007 budget work session, the Crime Control District Board reviewed the proposed 2007 -2008 Crime Control & Prevention District Budget in the amount of $4,946,750. The CCD Board will conduct a public hearing on August 27, 2007, at 6:30 p.m. in the Council Chambers, and make its formal recommendation on the proposed budget. A Parks and Recreation Facilities Development Corporation Board meeting was held on August 20, 2007 at 6:00 p.m. so that the Board could review the operating and capital projects budgets for the Corporation. The Board will conduct a public hearing on these budgets at 6:15 p.m., August 27, 2007 and make its formal recommendation to Council on the proposed operating and capital budgets. Prior to the Budget hearing, Drew Corn, Budget & Research Director, will provide an overview and highlights of the proposed budgets for next year. Recommendation: To open the public hearing, receive public comments for the Proposed 2007 -2008 Budgets for both operations and capital projects, and close public hearing. No action is required at this hearing as this is held solely for the purpose of receiving comments. As stated, adoption is proposed for the September 10 Council meeting. City of North Richland Hills Proposed Operating Budget For Fiscal Year 2007 -2008 This budget will raise more total property taxes than last year's budget by $945,961 or 4.94%, and of that amount $5351725 is tax revenue to be raised from new property added to the tax roll this year. City Council T. Oscar Trevino, Mayor Suzy Compton, Mayor Pro Tern John H. Lewis Dr. Tim Barth Scott Turnage Ken Sapp David Whitson Tim Welch Larry J. Cunningham, City Manager Karen R. Bostic, Managing Director Admin,jFiscal Services Drew Corn, Budget Director Jennipher Castellanos, Public Works Management Assistant Daley Lehmann, Budget Intern Visit our website at: www.nrhtxcom August 27, 2007 Honorable Mayor and Members of the City Council City of North Richland Hills North Richland Hills, Texas As we prepare for Fiscal Year 200712008, 1 am pleased to report that we will continue to provide quality services to our citizens, customers and community partners. The City of North Richland Hills has achieved many accomplishments over the last year and the services we provide to our citizens continue to set the standard for our neighboring communities. The Citizens Survey the City conducted with the University of North Texas in 2005 showed our residents value the quality of life the City provides (90% of respondents answered the quality of life was good or excellent) and 92% of respondents would recommend the City to their friends. Money Magazine also ranked us as one of the 100 Best Places to Live in the United States in 2006. We believe that the accolades are great but we are not resting on our laurels. We believe, "the best is yet to come." The University of North Texas will be conducting a follow up survey later this year and we hope to exceed our satisfactory numbers. Money Magazine will again rank large cities in Spring 2008 and we plan on keeping our 62 ranking or bettering it. Providing quality services does not happen by itself. The beliefs and feelings of our citizens, as well as rankings from independent magazines, have culminated from planning, citizen collaboration, strong progressive elected leadership and teamwork from citizen involvement with elected and appointed officials. As we begin looking to the next fiscal year, the budget becomes the plan to assist us in achieving the goals Council has set to continue its mission of a quality and effective government. The City of North Richland Hills strives to be the City of Choice to Live, Work and Play. We are proud of these accomplishments and will continue in the coming fiscal year to provide the highest standard of service and to successfully implement the City Council Coals and Objectives with the available resources. Preparing the proposed budget for Fiscal Year 2007/2008 has been challenging. The local economy continues to improve toward FY 2000/2001 numbers, though funds will continue to be tight. The increased costs of fuel, building materials, utilities and petroleum based products have impacted the proposed budget. The State Legislature has also passed unfunded mandates and introduced the new concept of diverting funds from wholly city initiatives to state reserves. The City will see an increase in court traffic with more "show cause" cases and the State will receive 50% of the net revenue from red light cameras. Our City maintains a strong property tax base, healthy reserves, innovative leadership, strong community partnerships, healthy residential construction and excellent City services. Over the last year we have seen the reoccupation of several vacant big box retail stores. 24 Hour Fitness has opened at Rufe Snow Drive and Loop 820, with Burlington Coat Factory coming in next to it. Ross Dress for Less has opened in the former Albertsons building at North Tarrant Parkway and Davis Boulevard. Let's Talk Call Center now anchors The Hills center on South Boulevard 26. By reoccupying these vacant store fronts these retailers and commercial businesses show that they have confidence in North Richland Hills and the market the City provides. Further, we continue to execute leasing agreements for gas on city owned land which brings another type of industry to our City. The City has also become the headquarters of residential builder History Maker Homes. We have also seen North Hills Hospital complete its major expansion. And, the new library is scheduled to open in early 2008. Not too far behind will be the new recreation center that is moving forward with the design process soon. The next fiscal year will be demanding from a financial perspective and will require some revisions to our long range plans. However, as always, we are optimistic about the future, thanks mostly to the visionary leadership of our Mayor and City Council and their strategic Coals and Objectives. We are confident we can continue to provide award winning programs and excellent services as well as some service enhancements with the resources we have available. To ensure this task is complete the City will enlist the help of our community partners. Our community partners include citizens, businesses, volunteers, neighborhoods, the county, our school districts, neighboring cities as well as our loyal and dedicated employees. There are many opportunities on the horizon. By working together with our community partners, we can take advantage of these opportunities and continue to build a vibrant community. Direction: Goals and Values The North Richland Hills City Council is dedicated to making our community the City of Choice for all citizens to live, work, and play. To accomplish this mission, the Council has adopted a strategic plan for the future and reviews and updates it biannually to respond to changing needs in our community. The strategic plan provides a clear vision for the City's future. It is the roadmap that directs our City toward positive change and serves as the policy direction for City management. In November 2006, Council met to review and update its Goals. Two goals were added (Targeted Economic Development and Local and Regional Leadership) and the previous six were updated to reflect North Richland Hills and the City's place in the community. ii The Council Coals also serve as a guide for developing the City's budget. All plans and projects for the coming year have been evaluated and prioritized based on meeting those goals. This is especially important given our limited resources. The goals are listed below: 1. QUALITY COMMUNITY DEVELOPMENT & REVITALIZATION - strive to promote local economic growth, retain and attract quality businesses and support business development. 2. EFFICIENT EFFECTIVE TRANSPORTATION SYSTEM - strive to provide improved traffic flow and mass transit opportunities for our growing community. 3. SAFETY & SECURITY - strive to be the safest community in Tarrant County and to be prepared for potential natural and man -made disasters. 4. FINANCIAL STABILITY - strive to get the best value for taxpayer dollars and to ensure that we have the financial resources available to invest in community priorities. 5. PRESERVE POSITIVE CITY IMAGE — strive to maintain a positive City image and reputation for being a great community. 6. A SENSE OF COMMUNITY- strive to support programs and events that support its citizens and the community as a whole. This includes maintaining our parks and recreation programs at the current high level, maintaining the cultural arts program, expanding the public art program, completing construction of the 19 -mile hike and bike trail system, and completing and implementing the Parks Master Plan. 7. TARGETED ECONOMIC DEVELOPMENT- strive to maintain and build our vibrant and diverse economic base. 8. LOCAL AND REGIONAL LEADERSHIP- strive to continue to build relationships among other cities and parties with similar interests, sit on committees that set the direction for our region and be proactive to influence the direction of key issues. As a supplement to these Goals, the City Council established a set of core organizational values and assigned a specific meaning to each value to inspire City employees to strive toward excellence in the provision of services to our citizens. These core values are: Hi RESPECT • Treating others in a courteous, fair and equitable manner • Valuing differences: points of view, style • Honoring the organization's chain of command • Acknowledging successes and the contribution of others • Following up with feedback SERVICE • Providing services to our community and others • Solving problems • Helping the customer to understand • Sensitive to the needs and feelings of others • Taking action, providing a timely response PRODUCTIVITY • Producing results, completing projects -on time, at or under budget • Planning work activities to achieve goals • Meeting or exceeding job standards and expectations • Look for ways to be more productive while being cost effective IOhd=rN -7hr•1 • Honest communication • Being trustworthy • Following through on commitments • Acting with high professional, moral and ethical standards • Supporting the City of North Richland Hills- goals, values and decisions RESPONSIBILITY • Being knowledgeable and skilled in your job • Holding yourself and others accountable for actions and results • Being loyal and taking ownership in the City goals, values, services and departmental work program • Taking pride in your work • Willingness to take command and initiative when appropriate INNOVATION • Looking for better ways to do your job • Willingness to learn • Being open to new ideas, new approaches • Willingness to take reasonable risks • Thinking creatively and evaluating options TEAMWORK • Participating and involving others in team efforts • Listening and understanding the other's viewpoint 1V • Willingness to cooperate with others and share resources • Fulfilling defined roles and responsibilities • Work and resolve difference and disagreements Our employees have truly embraced the core values established by the Council, and the quality of work performed by our Staff is a testament to that fact. The core values campaign and employee recognition program that was developed in an effort to incorporate the core values into the daily lives of our City employees continues to be a success. The program has been in place for over five years now, and is still getting a positive response. In addition, the Human Resources Department hosted the fifth employee recognition banquet this fiscal year, and recognized Lorie Brown, of the Public Works Department, as the 2006 Employee of the Year for the City of North Richland Hills. Accomplishments: Accountability to Citizens The following is a brief list of the items the City has accomplished in FY 2006/2007 as City Council and Staff work toward the attainment of each City goal. As is evident from this list, the Council goals do in fact guide the work plan of our City as many of the City Council's priorities were achieved or implemented this past fiscal year. Quality Community Development & Revitalization 1. Demolished substandard structures at the former North Hills Mall. 2. Developed the "Let's Grow Davis" streetscape program by inviting property owners, business operators and stake holders to a meeting to discuss plans for implementing the Davis Boulevard Streetscape Improvement Project. 3. Worked with the Gas Advisory Board, City Council and drilling companies to update the Gas Drilling & Production Ordinance to take advantage of new technology in the Barnett Shale and keep high quality community aesthetic and safety standards. 4. Assisted and encouraged the development of 9 residential infill planned developments throughout the City which when fully developed will bring approximately $60 million in new residential development on previously underutilized properties. 5. Received a Sustainable Development Grant from the North Central Texas Council of Governments to assist in the development of mixed use transit oriented sites around future rail stations. 6. Updated Sign Ordinance regulations through a City Council focus group. V Efficient Effective Transportation System 1. Overlaid 16 streets, slurry sealed 36 streets and cracked sealed 32 streets. A total of 84 streets were improved with this program and increased our overall street rating from 79 to 81. 2. Coordinated traffic signal lights along Holiday Lane, Rufe Snow Drive, and Glenview Drive to reduce delay time for motorists. Synchronization allows groups of vehicles to clear a particular corridor without having to stop at multiple intersections. This reduces delays and helps with the air quality. 3. Worked with the City of Keller and the Texas Department of Transportation to begin Phase II of the North Tarrant Parkway street improvements. The project will widen 3.5 miles of roadway between Davis Boulevard and Whitley Road. The project is currently in the design phase. North Tarrant Parkway is a strategic corridor that serves local neighborhoods and commercial development. 4. Participated on the Technical Advisory Committee for the Southwest to Northeast Transportation Study by the Fort Worth Transportation Authority. The study identified the locally preferred alternative for the development of the future Cotton Belt Rail Corridor from southwest Fort Worth to the north end of DFW International Airport. 5. Studied two sites for future rail stations in North Richland Hills, along Iron Horse Boulevard and in Smithfield, and maintained the site acquisition account so the City can purchase the required property when needed. Safety and Security 1. Completed construction and began training at the fire burn training lab. The building is a facsimile of a home with a kitchen, bedroom and living area. Fires are set inside the building to prepare our firefighters for specific structure fires. The training building allows our firefighters to have real life experience in a controlled setting. 2. Established CrimeWeb, an internet program designed to allow citizens to receive information on major crimes, Homeland Security, community information, and the Police Department's monthly crime report. 3. Obtained at no cost the computer program known as "ILook" through the U.S. Department of the Treasury. ILook is a forensics program built to allow a detective to conduct forensic analysis on computers that are suspected to have been used in a crime. The computer crimes detective V1 also received special training in the use of this software to help combat computer related crimes in our community. 4. Implemented the Red Light Photo Enforcement Program at various intersections around the City to reduce the number of intersection collisions. 5. Upgraded the Tiburon Records Management System (RMS) and Computer Aided Dispatch (CAD) software programs in March 2007. This system is the primary means for the Police and Fire Department's automated dispatch and records management. Tiburon RMS tracks and updates cases as new data is entered. The CAD upgrade allows the dispatch center to track geographically calls for service and locations of available officers in real time. The CAD aids the dispatchers in responding to incidents quickly. 6. Participated in an area firefighter survivability training session in December. This exercise included a lost firefighter maze in a residential structure that took the firefighter through at least one change of air bottles. The scenario duplicated the efforts necessary to rescue a lost or trapped firefighter. Five agencies from the NEFDA group participated. The training was an excellent way for the agencies to network ideas and to standardize some techniques and equipment. Financial Stability 1. Issued General Obligation bonds and Certificates of Obligation in April 2007. The bonds are to be used to finance street, aquatic park and capital equipment replacements scheduled for FY 200612007. 2. Refinanced $5 million in previously issued bonds at a lower interest rate. This will save the City more than $200,000 in interest expense over 16 years. 3. City's bond ratings were reaffirmed. The current ratings are Moody's (Aa3) and Standard & Poor's (AA -). Ratings analysts praised well- managed finances, long -range planning, and the bond presentation materials as factors in the continued strong credit rating of the City. The City's solid ratings play a key role in the ability of the City to receive favorable interest rates on debt issuances. This rating places us in the top 2% in the State of Texas and the top 10% in the United States. 4. Established a credit card transaction processing agreement with Bank of America to decrease our cost of using the point of sale (POS) merchant Vll system at the water park and obtaining lower rates for the Utility Department. 5. Updated the bid notification system to make bid specifications accessible to potential bidders on -line as well as improve the electronic access to the purchasing staff. Following this, an additional 50 companies have signed up for automatic notification of upcoming city bids, more potential bidders have the bid requests and bids have been received from new, non - regular bidders. 6. Added new services such as an E -bill option, a delinquency call out program and a welcome brochure for new utility customers in FY 200612007. 7. Went live with the Teleworks online payment system on June 15, 2007 in Municipal Courts. The system is similar to online utility payments, allowing court defendants to pay violations online on the City website and by telephone. The service improves customer service and court efficiency. Preserve Positive City Image 1. Produced the seventh Sounds of Spring Concert Series with 7,400 people enjoying the all Texas music line up at the new site, NRH20. Sounds of Spring had the mission and goal of making the Texas music scene accessible to the public while simultaneously providing a venue for talented and aspiring musicians. The Cultural Arts Division brought in $77,500 in cash and in -kind sponsorships for the 2007 Sounds of Spring Concert Series. 2. Continued the Night of Holiday Magic in December 2006. Departments and volunteers came together to enjoy the season and offer holiday activities to the citizens of North Richland Hills. There was a tree lighting, fireworks, ice sculptures, a petting zoo, marshmallow roast and even a visit from Mr. and Mrs. Claus. About 15,000 guests enjoyed the event. 3. Planned and managed several other special events including Easter in the Park, Hoot and Howl, Companies in Action, Volunteer Appreciation Luncheon, My Part of Town Neighborhood Park Series, Autumn Night Music, TV Off, Family On and others. The Parks and Recreation Department as a whole organized and managed 71 event days in FY 200612007. 4. Created a welcome brochure that provides information on policies related to billing, garbage services, delinquency, water conservation and other viii items that may prove useful to a new customer in the Utility Customer Service Department. 5. Placed banners at our City entryways and at City Hall to promote North Richland Hills as one of the 100 Best Places to Live in America. We have also continued to promote the 100 Best Places recognition in city newsletters, on the web site and on Citicable. 6. Filmed quarterly NRH UPCIos e development accomplishments ventures coming to the City. A Sense of Community program to promote NRH's economic and update citizens on new commercial 1. Continued the Keep NRH Beautiful, Neighborhood Looks, LitterNCT and Neighborhood Initiative programs. These programs encourage pride in North Richland Hills and maintain the beauty of our City's neighborhoods. 2. Coordinated volunteers to clean up City streets, tributaries of the Trinity River and other public land as part of the Great American Cleanup and the Trinity Trash Bash. 3. Began "Companies in Action" this year with Health Markets as the title sponsor. Companies in Action, formerly known as Corporate Challenge, provides six different sporting events that are held over a nine month period beginning in February and ending in October. The new format allows company employees, spouses and board members the opportunity to participate and eases the time commitment by spreading out the events over a longer period of time. 4. Completed construction and officially dedicated Dr. Pillow Park, Ace Park, Norich Park and JoAnn Johnson Trail. 5. Hosted the Annual Fire Department Open House with approximately 2,500 visitors this year and approximately 100 volunteers and staff helping at the event. Several new displays were added this year, along with Bell Helicopter providing a Model 47 helicopter for display and the Texas Fire Museum providing five antique fire trucks. 6. Put highlights of City Council meetings on CitiCable and the City's website, this further connected citizens to their Council and informed them about happenings in the City. ix Targeted Economic Development 1. Marketed the City to brokers, developers, retailers and restaurants at the International Council of Shopping Centers Annual Convention. From the convention, the City gained interest in both available buildings and greenfield sites. 2. Worked with brokers of The Venue, Home Town's commercial component, to promote commercial /retail uses at that location. 3. Met with the owner or the owner's representative of every vacant big -box property located in the City to assess redevelopment/re-tenant options. 4. Facilitated Burlington Coat Factory location to a vacant big -box in NRH. 5. Convened regular quarterly meetings of the City's Economic Development Advisory Committee, which began updating the City's Economic Development Plan. 6. Assisted the broker of the Albertsons building in assessing the market and trends to get the property re- tenanted to Ross Dress for Less. 7. Assisted the property broker in facilitating location of Let's Talk.com, a 230 -seat call center, to The Hills, the former Richland Plaza property. 8. Worked with the property broker to bring the headquarters of History Maker Homes to the City. History Maker Homes is a regional home builder and will employ 80 persons at its headquarters in the City. Local and Regional Leadership 1. Received the Keep Texas Beautiful Award: The Environmental Resource Division and the Keep Texas Beautiful Government Award of Excellence. 2. Conducted natural gas drilling familiarization classes for Fire, Police and Public Works Departments within the City, and with the cities of Grand Prairie, Midlothian, Colleyville, and DFW Airport. 3. Provided research and direction to JPS (John Petersmith Hospital) in identifying an area for a future satellite health clinic for northeast Tarrant County. This research was provided as part of a regional committee set up by Tarrant County Commissioner Gary Fickes. 4. Provided assistance and support to the Boulevard 26 Oversight Committee in establishing the final streetscape design criteria for the x ongoing redevelopment of the Boulevard 26 Corridor involving Richland Hills and North Richland Hills. 5. Received the annual "Community Spotlight" Award from the Fort Worth Builders Association for North Richland Hills' innovative residential infill planned development ordinance and ongoing development of underutilized properties. 6. City Council members participated in several regional groups and the Mayor served in leadership roles as chair of the North Texas Council of Governments, the Regional Transportation Council and the Tarrant County Regional Transportation Council. These are just a few of the City's accomplishments over the last year. The City is fortunate to have a City Council with the vision to plan for the future, good community partners and a staff that is dedicated to meet and exceed the expectations of Council. Fund Overviews Before moving into the details of the revised and proposed budgets, we feel it is important to give an overview of the types of funds used in planning and accounting for our annual program of work so that both our City Council members and our citizens are fully informed. This should create a clearer understanding of the budget as it is reviewed. General Fund The General Fund is the principal fund of the City and is used to account for resources associated with core government services, or traditional municipal services such as public safety, streets, library services, code compliance and building inspections. This is also the largest fund in the budget. Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted to expenditures for specified purposes. Special Revenue Funds include: the Crime Control and Prevention District Fund, the Promotional Fund, the Donations Fund, the Special Investigation Fund, the Drainage Utility Fund, the Parks & Recreation Facility Development Fund, the Gas Development Fund and the new Traffic Safety Fund. Enterprise Funds Enterprise Funds account for services that are funded directly through user fees. They are financed and operated similar to a private business, in that the costs of providing goods and services are self- supporting. These funds include the Utility Fund, the Golf Course Fund and the Aquatic Park Fund. Internal Service Funds Internal Service Funds are used to account for the financing of materials and services provided by one department to other departments on a cost - reimbursement basis. Internal Service Funds are designed to clearly delineate the costs associated with these services. These funds include the Building Services Fund, the Equipment Services Fund, the Information Services Fund and the Self Insurance Fund. As part of the regular annual budget process, some areas of the FY 2006/2007 budget require revision from the originally adopted level. Projecting revenues can be difficult at times when the economy is slowly returning and construction projects' times are not always known. Expenditures can sometimes be difficult to project because they are being projected up to eighteen months before they occur. This can mean adjustments are needed to update to the most current estimates to complete the fiscal year. One of the changes you will notice between the adopted budget and revised budget is the Appropriation of Fund Balance for prior year encumbrances in the revised revenues. This is generally for purchases or contracts that were obligated in FY 200512006, as approved by Council, but actually purchased, paid for and completed in FY 200612007. The most noteworthy budget revisions are explained in the following narrative. Good news has occurred in FY 200612007. Unexpected revenues have developed and expenses are staying at or below projected levels for the year. General Fund revenues have been revised upward from the adopted level by $777,395, a 2.3% increase. This increase is the net effect of both some revenues being revised downward, as well as some being revised up. Below is a discussion of the revenue adjustments. In addition, there were appropriations for an Insurance Fund reserve payment of $109,800 and prior year encumbrances of $403,264 included in total revenues of $35,263,400. The Insurance Fund xii reserve payment was included in the FY 2006/2007 adopted budget and the amount is unchanged. The Taxes category of revenues is projected to be $611,538 higher than the adopted budget. Sales tax revenues have been increased by $536,072 due to the slow but steady recovery of retail activity. There are a number of factors contributing to growth in sales tax. The completion of street improvements on Rufe Snow Drive north of NE Loop 820 has allowed many businesses to resume regular operations as well as the addition of new businesses along the corridor. The City of North Richland Hills is also benefiting from the overall growth in the Northeast Tarrant County area. The projected increase in sales tax takes into consideration the "payback" of sales tax that resulted from a ruling by the State Comptroller's office. This ruling concerned sales tax sourcing for a furniture store located within our City. Sales taxes collected by that store will no longer be credited to the City of North Richland Hills but to a city where the distribution center is located. This change in sourcing not only impacts future revenues, but is retroactive 45 months. The Comptroller has agreed however to allow us 48 months to repay the amount. Regarding another part of our Taxes category, there was a minor decrease to Utility Fund franchise fees related to reduced revenue projections in the Utility Fund and an increase to Payment in Lieu of Taxes. In summary, the net effect of these three adjustments to the Taxes category of revenues is an increase of $611,538, or 2.5 %. The Fines and Forfeitures category of revenues has been revised upward approximately $87,000. Municipal Court Fines revenues have been increased due to an increase in the number of citations being issued. Library fines have also been increased as has warrant and arrest fees. The increase to warrant and arrest fees is the result of the "warrant roundup" that was held this past spring. Overall, the Licenses and Permits category has been revised down by $47,200, or 2.8 %, of adopted FY 200612007. A majority of revenues in this category are solely dependent on private development. Staff works diligently with the private development community to anticipate license and permit activity but delays can occur which impacts the revenue the city receives. The Charges for Service category has been revised up by $29,136 due mainly to increases in the amount of recreation fees and vital statistic fees collected. There is a slight decrease in the projection of ambulance fees to better reflect actual collections for the year. The Miscellaneous Revenue category has been revised upward almost $97,000. This adjustment is primarily due to the pleasant, but unanticipated, increase in interest rates. Other adjustments were the reduction in Council filing fees due to no opposed seats in the May election and the increase in school resource officer reimbursements from the Birdville Independent School District. xiii Appropriation of Fund Balance has increased by $403,264. The adjustment to this category is the appropriation for prior year encumbrances equal to the same amount reflected in expenditures. As described above this amount is to offset open purchase orders from the prior year for items that were ordered in the prior year but were not received and paid for until the current year. General Fund departmental expenditures have been revised downward by $27,612. Based on recent discussions with the City attorney litigation services are being revised down almost $210,000 but this decrease has been partially offset by increases in ambulance bad debt expense. Also, one time and capital purchases of approximately $71,000 that were proposed for FY 2007/2008 have been recommended to be included in the revised FY 2006/2007 budget because resources are available now to purchase the items. Included in the Reserves and Other Expenditures category, several increases to the revised budget have been proposed. First, an increase of $100,000 is recommended for Preventive Street Maintenance from the extra revenues we have received. This additional money would be to supplement the $800,000 budgeted in Public Works for the Preventive Street Maintenance Program. It could be used more as a contingency in times of significant cost increases such as we experienced this year or if we had a need to slightly increase our annual program to cover a special street need. It is not suggested to be added to the current program itself, but be set aside for urgent needs or perhaps to supplement the annual program slightly. Another change we are suggesting is to increase the reserve for 820 Facility Planning in order to have a sufficient amount of money set aside for the purchase of properties adjacent to City Hall in anticipation of the modifications and reorientation of the building once NE Loop 820 is widened. A project has also been included in the FY 2007/2008 proposed capital budget so that funds will be available at the time purchases are recommended to Council. An increase of $100,000 to the rail station development is a third change being suggested. This reserve is to be used for the purchase of land for the future rail stations in North Richland Hills. Finally, there is an increases of $403,264 included in this category for previous year encumbrances. As mentioned in the revenue portion of this letter, these are goods that had purchase orders issued in FY 2005/2006 but were not received and paid for until the current year. Again, there is an appropriation of fund balance under the revenues that offsets this budgetary increase. As a result of the ending balance being greater than had been anticipated in the adopted budget, several service enhancements are being proposed to be included in the revised budget. The proposed enhancements are one time or capital type purchases. These include the 2007 citizens' survey, matching funds for the Home Grant Program, fire station enhancements, increases to pay -as- you-go reserves and Information Services reserves as well as setting aside funds for citywide leadership training. These enhancements total $448,721 and are discussed in detail in the "The Best is Yet to Come: Planning For The Future and Addressing Priorities" section of this letter. X1V Total expenditures including all the adjustments outlined above as well as the proposed service enhancements are $35,737,346. Revised revenues over expenditures for the General Fund are $39,118. Sales tax revenues are projected to be $4,167,759, an increase above the adopted budget of $268,036. As mentioned in the discussion of the General Fund, we are experiencing a slow, steady increase in retail activity in the City which increases sales tax revenue. Tennis Center revenues have been revised downward to $293,350, a decrease of $9,200. This decrease is the result of the very wet weather we have experienced this year. Included in the revised budget are Park Impact Fees revenue estimated to be $125,000. These revenues were not included in the adopted budget because they have previously been accounted for in a capital project fund. An effort is being made to have all park related revenues and expenditures flow through the operating budget instead of being accounted for directly in the capital funds. There is an Appropriation of Fund Balance for previous year encumbrances of $6,000. All of these adjustments add up to total revenues of $4,750,109, which is $440,461 more than the adopted budget. Departmental expenditures are approximately $24,000 more than adopted, but this is due to the redistribution of the market adjustment that was included in the Other and Reserves category in the adopted budget. The Other and Reserves category increased approximately $410,000. This increase is in the reserve for capital projects and has been made possible by the increase in revenues to be collected by this fund as stated in the previous paragraph. This reserve is designated in the long range plan for future Parks capital projects. The final adjustment to revised expenditures is $6,000 for previous year encumbrances. Total revised expenditures are $4,750,109. Sales tax revenues are projected to come in above the adopted budget by $158,139 for a total of $3,904,897. This is the result of the slow, steady increase in retail activity in the City. The revenue increase has allowed us to reduce the loan from the Transition Fund. The original plan was to borrow $782,482 from the Transition Fund, but the increased revenue has meant the loan could be reduced to $624,343. The final adjustment to revenues is appropriation of fund balance of $27,955 for previous year encumbrances. There is an offsetting adjustment to expenditures. Other than the adjustment for previous year encumbrances, operating expenditures have remained at adopted budget levels. xv Hotel /motel occupancy tax revenues are expected to increase by $55,100 over the adopted budget bringing the occupancy tax proceeds to $230,000. The City's internal auditor conducted an audit of hotel/motel taxes and discovered the City was owed revenues from prior years, so revised revenues are greater than adopted solely due to the collection of past due hotel/motel taxes. Also included in revised revenues is $742 for prior year encumbrances. The additional revenue has made it possible to remove the planned use of $36,097 from fund balance. Total expenditures are projected to be $217,556. Overall revenues are projected to decrease $28,600 from adopted and includes an appropriation for previous year encumbrances of $8,355. The decrease includes amounts raised through sponsorship efforts for the Sounds of Spring concert series, through water bill contributions and donations to the Shelter Fund. The donations have come in lower than anticipated in the adopted budget. Total revised operating expenditures of $149,972 are $16,645 less than the adopted budget. The decreased expenditures are $20,000 in savings in special event costs due to the very rainy weather during the Sounds of Spring concert series. The Donations Fund is projected to end the year with a $59,478 balance of revenues over expenditures. Revised revenues have been adjusted upward by $66,483. Forfeited funds revenues are dependent on which cases go to court and whether or not a judge releases any funds to the City. This revenue fluctuates year to year. The increase in State forfeited funds was offset by a decrease in Federal forfeited funds. Radio system revenue has been increased by $42,363 due to greater participation in the radio system than previously anticipated. Interest income increased by $4,805 due to having more cash on hand than when the original projections were made. The final adjustment to revenues is an appropriation of $17,499 for previous year encumbrances. Revised expenditures remain at the adopted level excluding previous year encumbrances. Due to the revenue increase this fund will have $48,984 of revenues in excess of expenditures. XV1 Drainage fee revenues have increased by $11,450 over adopted bringing the revised drainage revenues to $806,450. Investment income has increased $5,080, which has increased due to a favorable interest rate. It is projected that this Fund will end the year with a balance of approximately $557,315. Drainage fees are used to pay the costs of debt service for drainage capital improvement projects. The Gas Development Fund has received $310,681 in revenues which is primarily bonuses and leases for natural gas development at Cross Timbers Park, Green Valley Park and the Service Center. This is an increase of $55,681 over adopted. Staff was unable to lease property north of Loop 820 on the Iron Horse golf course but was able to lease mineral rights at the Service Center. Iron Horse equipment replacement expenses of $147,250 were contingent on mineral leases at Iron Horse therefore the equipment was not purchased. However, General Fund Purpose funds were expensed to renovate the C.A. Sanford Club House in the amount of $120,200 during FY 200612007. In November 2006, City Council adopted a policy on the use of funds that are generated from red light camera enforcement and created the Traffic Safety Fund. The policy was established on how the revenues may be used. As the program matures, it is anticipated that driver behavior will change resulting in a decline in the number of violations and, thus, the amount of revenue received. Because of the nature of this revenue, it would be impractical to use these revenues for ongoing operations with the exception of activities directly related to program administration. Instead, the program revenues lend themselves to project or one -time expenses with the focus on traffic safety. In general, the policy guidelines establish two areas for using the money: 1. Operational expenses including monthly payment to the equipment provider, wages to an administrative hearing officer, overtime for police officers to review violations and other operating expenses. 2. Traffic safety equipment and programs including expendable items such as flares and traffic cones, infrastructure improvements to improve traffic safety, overtime and wages related to special traffic enforcement and awareness, computer equipment and software and training and educational programs and materials. xvii Recent State law now requires cities to share fifty percent of red light camera revenues with the State after allowable expenditures. This sharing is to take effect September 1, 2007. The City currently operates three red light cameras at two intersections. All revenue generated from these cameras and any other camera operational prior to September will be solely the City's. Revised revenues from the program are anticipated to be $105,840 and allowable expenses are $21,110. The City share of revenue, after allowable expenses, is projected to be $42,365. 2007/2008 PROPOSED BUDGET All signs indicate that Fiscal Year 2007/2008 will be very successful, both from accomplishing numerous goals of the City Council and from a financial point of view. Our team of dedicated employees will continue to focus in the coming year on building a vibrant community, providing quality services to our customers and implementing the City Council Coals of: • Quality Community Development and Revitalization • Efficient Effective Transportation System • Safety and Security • Financial Stability • Preserve Positive City Image • A Sense of Community • Targeted Economic Development • Local and Regional Leadership We expect to see residential growth continue at a steady pace in FY 2007/2008 and anticipate growth to our economic base with the revitalization of many of our older big box stores and the new commercial development of Tower Plaza at Davis Boulevard and Shady Grove Road, Smithfield Summit at Davis Boulevard and Mid - Cities Boulevard and the North Hills Hospital expansion. We will move forward with the redevelopment of Boulevard 26 and the former North Hills Mall site. We will continue to have natural gas development on public and private lands. All of this will have a positive impact on our future revenues and will help deter the increasing costs that are beyond our control. As our City's population increases, we face an understandable increase in the quantity of goods and services needed to serve that population. Like any business, the City of North Richland Hills is also experiencing increases in the cost of electricity, gasoline, building materials and other services. Many of the cost increases the City is experiencing are greater than general inflation or the XV111 consumer price index. We are making efforts to find ways to minimize the impact of these types of increases. Price per unit of gasoline is projected to increase in FY 200712008. In FY 2006/2007 the per gallon cost of gasoline was budgeted at $2.50. In FY 2007/2008 we are expecting the per gallon cost of gasoline to be $2.75, a 10% increase. However we expect to use less gasoline because the City is purchasing more fuel efficient vehicles. We expect to only use 195,000 gallons of gasoline next fiscal year compared to 207,000 gallons this year. This will be a significant measure to help us keep our costs down even with actual price increases for fuel. The City will also see an increase in prices for petroleum based projects. Tires are expected to increase from $66.66 to $71.99 a piece, an 8% increase. Engine oil will increase from $1.72 to $1.85 per quart, an 8% increase. Asphalt, needed for the Preventive Street Maintenance Program, will increase 28% from $32 per ton to $41 per ton. Electricity costs will increase due to increased per unit price and the addition of the new library. We anticipate an increase in overall electricity costs of $37,000 in FY 2007/2008 due to the added Library space. The cost of electricity per Kilowatt/hour averaged $0.12 in FY 200612007. The average in FY 2007/2008 should be $0.152 per Kilowatt/hour, a 27% increase. Other construction materials are estimated to increase as well. Copper tubing will see an increase of 51% from $10.30 per linear foot to $15.60 per linear foot. Cement is projected to increase 23 %, from $59.00 per cubic yard in FY 2006/2007 to $72.50 per cubic yard in FY 200712008. The City expects to see an increase of 9% in credit card fees in FY 2007/2008 due to increased usage. More residents are using the credit card option to pay for various city services and while the fees normally are below 1%, some cards have fees of over 4 %. The City is working to lower those high fees and the estimated cost may be reduced in the revised FY 2007/2008 budget. Another expenditure that exceeds the inflation factor that has a major impact on the City's operations is health and medical costs. These continue to increase between 8% and 10% per year, and we are projecting a 10% increase in FY 200712008, which is double the CPI. We are a labor- intensive, service orientated business, and because of this it is a major cost increase to cover our employees with health insurance. To help defer the increasing costs of doing business, all of our departments continue to look for ways to reduce costs in other areas and to improve levels of efficiency. This is an important step in our fiscal planning and will help us to maintain our financial stability and retain a 57¢ tax rate. xix As we plan our services and programs for FY 200712008, it is important to highlight some of our continuing initiatives, to summarize the revenues and expenditures for each fund and to explain new programs and initiatives that are being proposed. Highlights and Analysis In an effort to achieve the goals set by the City Council and address the issues we expect to shape the FY 2007/2008 budget year, a number of new initiatives are planned for FY 2007/2008 as well as the continuation of others from previous years. Highlights of the coming year are: 1. Continuing Support for Preventive Street Maintenance — The 17th consecutive year of major funding for street maintenance will see the continuation of funding devoted to this highly visible program. As in FY 2006/2007 the program will receive $800,000 in FY 200712008. In FY 2006/2007 $200,000 came from the Gas Development Fund and $600,000 from the General Fund. In FY 2007/2008 $700,000 will come from the General Fund and $100,000 will come from the Gas Development Fund. By FY 2008/2009 we expect that the full $800,000 to come from the General Fund. Asphalt overlay will be applied to 4.2 lane miles of public roads and slurry seal will be applied to 11.0 lane miles of public roads. We expect that our overall street rating of 81 will continue to increase with this program. 2. Equipment & Building Services Plan — These plans as originally presented to City Council in FY 1997/1998 continue to be updated to insure Council and citizens recognize needs for future equipment replacements, facility renovations and major maintenance. The plans allow the City to continue its programs of facility infrastructure maintenance and equipment replacements with no property tax increase, while monitoring the investment the City has in these valuable assets. Suggested changes are being made for Fiscal Year 2007/2008 as far as specific equipment and building upgrades, but the basic plan remains valid and is recommended to be continued as a tool to keep our equipment and buildings timely and reasonably maintained, replaced and/or improved. The 2008 plans are presented in the FY 2007/2008 Capital Improvement Projects (CI P) Budget. 3. Aquatic Park Infrastructure — The 12th consecutive year of infrastructure funding will see $325,000 added to reserves for major infrastructure replacement and /or major repair. Total accumulated reserves at the end of FY 2007/2008 are estimated to be approximately $3.4 million. 4. Support of Alliance for Children Advocacy Center — This program will receive $11,725 in FY 2007/2008 with funding from the Crime Control and Prevention xX District sales tax. This program reaches out with assistance to at -risk children in Northeast Tarrant County. 5. 9Lh Year Reserve for Capital Improvements — The FY 2007/2008 budget continues funding the reserve for capital projects to provide a pay -as- you -go approach to fund small capital projects. The total funding for this reserve is $50,000. Projects funded from this reserve allow us to avoid borrowing funds for smaller capital projects. This will bring the total amount allocated to the reserve to $3,859,261 since it was created in FY 199811999. 6. Service Enhancements for FY 2007/2008 — Several service enhancements to address Coals established by the City Council are proposed in the FY 2007/2008 proposed budget. Management and Staff identified items that met high priority needs but were funded by extraordinary and one -time revenues. These enhancements are discussed in detail later in the letter, starting on page xxxiii. The following is a summary of these recommended enhancements: Show Cause Requirements - Municipal Court Improving Efficiency Through Document Imaging - Municipal Court Technology Improvements to Increase Productivity- Municipal Court Opening our New Library Establishing Equipment Replacement Schedule -Golf Course Improving our Emergency Dispatch Service Restructuring Police Support Services Facade Improvement Program Traffic Enforcement Enhancement Waterwise Public Education Program Vibrating Compactor with Remote Fuel System Upgrade Technology Productivity Enhancements 7. Continuing to Restore Medical Claim Reserves — In July 2003, the City Council held a special work session to discuss significant challenges facing the City's self- insured health plan. Years of double -digit medical cost increases and several large catastrophic medical claims had put a strain on the City's Self Insurance Fund. At that time, a six year strategy of cost sharing and cost reduction was approved to address the City's health insurance costs. It was important for employees and the City to partner together to ensure the long -term success of the cost saving initiatives. This includes rebuilding medical claim reserves for future emergencies and to keep the plan stable. Substantial progress has been made, and in FY 2007/2008 we will continue to have improvements. X While the FY 2007/2008 proposed budget addresses many of the Coals Council has established for the City, the proposed budget strives to further enhance or modify existing services without incurring added costs. Due to limited resources this has been a challenge. Property Values & Tax Analysis Net taxable value growth is up once again. As of the July 2007 tax roll, net taxable values are approximately 4.9% greater than last July and include $94,642,358 in new construction. Excluding new construction, existing property increased in value 2.1% over July 2006. The average home value in North Richland Hills was $138,800 in July 2006. The average home value, based on the July 2007 tax roll, is $144,417. The estimated revenue to be generated from the net taxable value at a 99% collection rate is $20,170,390. The budget includes revenues to the Debt Service Fund in the amount of $6,598,877 to pay for bonds and certificates of obligation, $976,110 for public improvements in the Tax Increment Financing Districts, and $12,595,403 to the General Fund. The budget includes no changes to the current tax rate of 57¢ per $100 valuation. The effective tax rate, or the property tax rate necessary to produce the same amount of revenues as the prior year, is the effective tax rate. The effective tax rate is still under review by the Director of Finance and Tarrant County. We hope to have the information prior to the Budget Work Session. General Fund Proposed 2007/2008 The General Fund provides funding for the tax supported operations of the City. These include services traditionally thought of when referring to City operations such as Police, Fire, Streets, Library, etc. The major sources of revenue to this fund are sales taxes (representing 24% of General Fund revenues) and property taxes (representing 34% of General Fund revenues), both excluding appropriations of fund balance. In FY 200712008, total revenues in the General Fund are projected to increase over FY 2006/2007 adopted revenues by approximately $2,358,462, or 6.8 %. The major increases are: Property Taxes $ 968,517 Sales Taxes $ 989,041 Fines and Forfeitures $ 523,500 Charges for Services $ 179,265 The above revenue increases were offset by decreases in transfers from the Crime Control and Prevention District of $130,764 for salaries and the Gas Development Fund of $100,000 for the Preventive Street Maintenance Program. XM1 Property tax revenues are projected at $20,170,390 based on the current 57¢ tax rate. Of this amount, $6,200,000 is needed for general debt service and $1,000,000 is needed for debt service payments in the Tax Increment Financing Districts. General Fund sales taxes are projected at $8,788,488 (an increase of 12.7% above FY 2006/2007 adopted budget), which includes business gains as well as business losses. The revenue projections for Municipal Court fines not only take into account an increase in the number of citations, it also includes increased fine amounts for four categories: speeding, speeding in a school zone, running a red light/stop sign and failure to appear. A survey of ten local cities indicated that our City was collecting below average fine amounts in the four categories. Per State law, the Judge has discretion to set fines within our court. As of September 1, 2007 he is increasing speeding fines by $9, speeding in a school zone by $9, running a red light/stop sign by $25 and failure to appear by $25. Increasing the fines by these amounts will still place the City of North Richland Hills in the mid -range of the survey cities for fines for these violations. It is projected that the fine increases would amount to $250,000 per year. The General Fund departmental operating budget requests totaled $36,142,177 a 5.1% increase over the adopted FY 2006/2007 budget. The consumer price index (CPI) for the Dallas Fort Worth area has increased 2.7% over roughly the same time period. When the budget increases more than a common measuring stick like the CPI, we believe further explanation and examination is needed. As discussed earlier in this letter, the cost of many products the City buys in large quantities has gone up in price greater than the CPI. For example gasoline is expected to increase about $72,000. Additionally petroleum -based products such as oil, tires and materials used in street maintenance have gone up significantly as well. Electricity costs associated with General Fund departments are other costs that have risen much greater than the CPI, and are estimated to increase almost $70,000. Healthcare costs continue to rise well above the CPI with projected expenditures expected to increase 10% over the FY 2006/2007 level or about $340,000. The most significant increases to the budget are in employee salaries and benefits costs. The market adjustments made to salaries in January 2007 for all employees and again in April 2007 for public safety employees were funded in the adopted FY 2006/2007 budget only from the time of the adjustment to the end of the fiscal year, approximately six months. Going into the proposed FY 2007/2008 budget it is necessary to fund the adjustments for the full year. The impact of the public safety employee market adjustments implemented in April 2007 to the proposed budget are over $250,000, and the adjustment granted to general services employees in January 2007 impact next year about $50,000. The annual merit increase of up to 4% for eligible employees will have approximately a $500,000 impact on the proposed budget. The cost of merit increases is also impacted by prior year market adjustments because the merit increases are calculated off of the increased salaries resulting from market adjustments. Increases to salary, through merit increases or market adjustments, will xxiii proportionally increase retirement pension payments and overtime rates. Amounts budgeted for the capital projects reserve, market adjustments, allocation to the Self Insurance medical claims reserve and service enhancements bring the total proposed General Fund budget to $36,892,066 or 7% over adopted FY 200612007. The proposed budget includes merit increases for eligible employees with corresponding increases to benefits and increases to health insurance and workers compensation. The proposed market adjustment of $305,961 is budgeted to keep employee salaries competitive with the surrounding market and allow the City of North Richland Hills to recruit, hire and retain exemplary employees. The market maintenance adjustment is discussed in more detail in the "100 Best Places in the United States... Best Employees" section of this letter. Last year, $800,000 was budgeted for the Preventive Street Maintenance Program by Public Works. Gas Development Fund reserves funded $200,000 of the total with the General Fund covering the remaining $600,000. In the proposed FY 2007/2008 budget $800,000 is once again planned in the Public Works budget. However, the Gas Development Fund will contribute only $100,000 continuing the transition to fully funding the Preventive Street Maintenance Program from General Fund resources. The proposed budget includes $50,000 in Reserve for "Pay As You Go" Capital Improvements. This is $500,000 less than the funding goal of $550,000 due to budget constraints. The proposed budget also includes an $115,800 allocation to the Self Insurance Fund to continue the rebuilding of medical claims reserves in that fund as approved by Council. Funding is from the General Fund Balance and is identified as an Appropriation from Fund Balance in the revenues and in expenditures as a transfer to the Self Insurance Fund. This is an increase of $6,000 from adopted FY 2006/2007 per the approved reserve plan. Finally, the proposed budget includes $278,128 for service enhancements that will be discussed in detail in "The Best is Yet to Come: Planning For The Future and Addressing Priorities" section of this letter. In FY 200712008, the City will continue to deliver the expected high quality services as in past years. The projected revenues over expenditures for the General Fund are $63,201. Park and Recreation Facilities Development Fund Proposed 2007/2008 Sales tax revenues are projected to be $4.5 million in FY 200712008, approximately $595,000, or 15.2 %, more than the FY 2006/2007 adopted budget. This figure reflects the continued recovery of sales tax revenues from increased retail activity in the City. Tennis Center revenues are projected at $308,500, or about $6,000 more than adopted FY 200612007. Also included in XXLV revenues is $60,000 from the Aquatic Park Fund as a reimbursement for landscaping services provided by Park employees. A transfer of $400,000 from the Gas Development Fund is included in total revenues. This amount is bonus money received to date by the Gas Development Fund that has been dedicated to Parks and Recreation for capital projects. Finally, park impact fees in the amount of $125,000 are included. As mentioned in the revised section of the letter, these revenues were previously accounted for in another fund. Total revenues from all sources total $5,599,664. Total budgeted expenditures are approximately $5.6 million, including debt service of $1,322,213. Also included is the allocation of sales tax revenues to be used to enhance economic development efforts. The allocations to economic development are to be 5% of sales tax revenues or $224,712 for the FY 2007/2008 proposed budget. The Tennis Center is projecting expenditures of $542,726 to operate the facility. This budget also provides funding for park operations, administration, and for maintenance of park and recreation facilities constructed using the half -cent sales tax. Included in total expenditures is $500,000 to be used toward funding the Recreation Center Capital Project. The Recreation Center project as well as other capital projects funded through the half cent sales tax is identified in the proposed Capital Projects Budget. Revenues over expenditures for FY 2007108 are projected to be $651,805 which is designated as Reserve for Capital Projects. Crime Control and Prevention District Fund Proposed 2007/2008 Sales tax revenues are projected to be about $4.12 million in the Crime Control District for FY 200712008. This is $375,286 more than the FY 2006/2007 adopted budget. A planned loan of $766,304 from the Transition Fund is necessary to balance revenues over expenditures and will be repaid in future years with the recovery of sales tax revenues. Proposed FY 2007/2008 operating expenditures increased almost $300,000 over the FY 2006/2007 adopted budget. Similar to the General Fund, the majority of the increase can be attributed to increased healthcare costs, the full -year funding impact of the market adjustment and merit increases. Also included in total proposed expenditures of $4,946,750 is $200,000 for indirect costs to the General Fund, $803,260 for General Fund police officer salary increases and $53,994 for market adjustments needed next year to keep salaries competitive and allow us to attract and retain the best employees we can. There are also $118,427 in service enhancements included in the proposed budget and will be discussed in detail in the "The Best is Yet to Come: Planning For The Future and Addressing Priorities" section of this letter. XXV Promotional Fund Proposed 2007/2008 The Promotional Fund, which provides visitor /tourism services and economic development for the City, projects occupancy tax proceeds of $205,000, interest income in the amount of $4,460, and an Appropriation of Fund Balance of $23,641 necessary to cover costs. The City's internal auditor conducted an audit of hotel /motel taxes and discovered the City was owed revenues from prior years, so revised revenues in FY 2006/2007 are greater than proposed FY 2007/2008 solely due to the collection of past due hotel/motel taxes. This fund continues to see very little growth based on the occupancy levels at local hotels. We do not expect any improvement in this over the foreseeable future. As previously discussed with Council, until a new hotel can be developed, the recommended plan is to primarily use these funds to provide promotional and marketing opportunities. In FY 2005/2006 a plan was instituted to move 0.25 full - time equivalent salaries to the General Fund each year until all salaries are transitioned out of the Promotional Fund and into the General Fund. Total proposed expenditures for the Promotional Fund are projected at $233,101. Donations Fund Proposed 2007/2008 The Donations Fund derives most of its revenue from the voluntary $1.50 contributions made through city utility bills. The contributions are allocated to the Library (65¢ ), Humane Services (65¢ ), and special events and arts (20¢ ). It is estimated that water bill donation revenues will generate approximately $86,000 of the total projected revenues of $222,850 for FY 200712008. Total revenues are $23,575 less than FY 2006/2007 adopted. The decrease is due to the decrease in utility bill contributions and investment income. It is projected that the fund will have revenues in excess of expenditures of $81,697. Excess revenues will be allocated to the three approved categories of the Donations Fund. Special Investigation Fund Proposed 2007/2008 Revenues for this fund are derived from Federal and State forfeited funds and reimbursements from neighboring cities involved in the 800 MHz radio system and the Automated Fingerprint Identification System (AFIS) program. Total revenues are budgeted at $393,793, which is slightly less than FY 2006/2007 adopted. Proposed expenditures total $367,221 a decrease from FY 2006/2007 adopted of $29,060. The AFIS system was upgraded last year with the purchase of replacement equipment which is the primary reason for the decrease in expenditures in the FY 2007/2008 proposed budget. xXVi Drainage Utility Fund Proposed 2007/2008 This fund accounts for the monthly fees charged to residents and businesses to pay for the cost of drainage improvements throughout the City. Revenues are transferred to the Debt Service Fund to pay for principal and interest on bonds approved by voters for drainage improvements. Budgeted debt service transfers for FY 2007/2008 are $698,766. An ending balance of $676,514 is projected for this fund. Gas Development Fund Proposed 2007/2008 Gas development revenues of $200,000 are anticipated from lease revenue for ongoing gas production at Fossil Creek, Linda Spurlock, Richfield, Northfield, Cross Timbers, Green Valley and Little Bear Creek Parks. Of this lease revenue, $100,000 is for park development purposes; the remaining $100,000 is for General Fund purposes. The proposed expenditures adhere to the Council policy on uses of revenues from gas prod uctionlexploration. The expenditures are a $400,000 transfer to the Parks and Recreation Development Fund for capital improvement projects. Service enhancements for $200,000 are being proposed; a transfer of $100,000 is proposed for General Fund preventive street maintenance and funding for economic development initiatives in the amount $100,000 that is included in the Capital Projects Budget. The ending balance of the fund is projected to be $222,627 for 200712008. Traffic Safety Fund Proposed 2007/2008 Red light camera fine revenues of $1,512,000 are anticipated from eight cameras or approaches located at six intersections along Rufe Snow Drive and Davis Boulevard. After deducting proposed contractor payments and program administration expenditures of $569,482, the proposed net fine revenues are $942,518. Per State law effective September 1, 2007 these revenues after allowable expenditures must be split fifty -fifty with the State leaving $471,259 available for traffic safety activities and projects. The proposed expenditures of these revenues adhere to the Council policy on uses of revenues from automated traffic signal enforcement. The expenditures are a $285,000 transfer to the capital projects budget for the signalization of two intersections. These projects will be discussed in more detail in the FY 2007/2008 Capital Projects Budget. Service enhancements totaling $99,531 are being proposed. The service enhancements include the creation of a civilian Technical Services Supervisor to manage the Police Technical Services division as well as oversee the automated traffic signal enforcement program. The second service enhancement is the purchase of 3 additional motorcycles for traffic enforcement. Both of these enhancements are discussed in detail in the "The Best is Yet to Come: Planning For The Future and Addressing Priorities" section of this letter. The proposed FY 2007/2008 ending balance of the Traffic Safety Fund after allowable program xxvii expenditures, State share, traffic safety expenditures and service enhancements is projected to be $176,219. The Best is Yet to Come: Planning for the Future & Addressing Priorities The City continues to experience steady population growth and increased demands on services. To continue providing excellent service, several enhancements are needed in some City programs and services. These enhancements have been deemed high priority and are in line with City Council's Coals and Objectives. The proposed enhancements will assist the City and our community partners in building a vibrant community. Since the City experienced some revenue increases over what were originally anticipated, it is suggested that a few service enhancements or one time, non - recurring expanded service enhancements be paid this fiscal year, FY 200612007. This list includes both expanded efforts for FY 2006/2007 and proposed service enhancements for FY 200712008. The following descriptions provide details of the service enhancements. Revised FY 2006/2007 2007 Citizens' Survey In 2005 the City of North Richland Hills worked with the University of North Texas Survey Research Center to develop and conduct a citizen survey. The survey measured residents' attitudes and perceptions about the quality of life in North Richland Hills and services provided by the City. Overall, the survey results were very positive with 90% of survey respondents saying the quality of life in North Richland Hills is excellent or good. The survey results have helped identify which programs and services the City is providing well and which programs and services need improvements. The City of North Richland Hills will again work with the University of North Texas to conduct a citizen survey this summer. The survey will be prepared in August and administered in September, with a report to Council in November. A follow up survey allows the City to measure the City's improvements and changes in residents' perceptions. The survey will cost $11,000 to conduct and analyze. Monies will come from the General Fund. XXV111 Home Fund Grant Participation The Tarrant County Home Fund subsidizes a Community Development Block Grant in helping low income, elderly, mentally /physically disabled and single parents maintain their homes. This money helps eliminate code violations and repairs substandard housing within our city limits. The funds are available through the Department of Housing and Urban Development (HUD) and administered through Tarrant County Housing and Development. HUD requires 25% match from each city with a minimum match of $25,000. The total program cost is $100,000 with our match of $25,000 from the General Fund. We anticipate repairing a minimum of four homes. Improving Fitness, Safety and Efficiency at Fire Stations Equipment improvements are needed at each of the City's four fire stations. Each fire station needs two Bunker Gear Washer /Extractors. Bunker Gear Washer /Extractors are capable of properly cleaning up to four sets of firefighter structural firefighting protective clothing per load. These machines comply with the Texas Commission on Fire Protection requirements for the proper care and cleaning of firefighter protective clothing. The washers thoroughly clean protective clothing of chemicals and toxins to reduce exposure to the firefighter and prevent contamination of others. The eight washers will cost $13,950 total or $1,744 each. The Fire Department initiated its fitness program in 2005 to encourage physical health of all its firefighters. Climate controlled workout rooms were installed at each of the four fire stations to encourage and improve fitness levels. The workout rooms are only partially filled with equipment and elliptical machines are needed at each station to ensure every firefighter's cardio health. An elliptical machine at each fire station will provide long term savings for the City with fewer insurance claims. The elliptical machines will cost $13,996 or $3,499 each. Installing a 500 gallon diesel "ConVault" above ground storage tank at Fire Station #1, located at 8001 Shadywood Lane, will save vehicles assigned to the district from traveling outside the district to refuel. This will reduce response times when a fire apparatus is refueling. The storage tank with installation costs $15,975. All of the improvements will be funded from the General Fund and total $43,921. Continuing Initiatives for "Pay -As- You -G o" Improvements For eight years, the City has set aside monies to pay for small capital projects. These Pay -As- You -Go Reserves come from the General Fund and allow the City XMX to complete small capital projects without having to borrow funds. By increasing the Reserves in the revised budget for FY 2006/2007 by $202,400, we can pay for projects proposed in FY 200712008. In FY 200712008, $202,400 of the Reserves are recommended to be used for four needed projects. These four projects are described below and are included in the FY 2007/2008 proposed capital improvement budget. Once the $50,000 contribution is made in FY 200712008, the Pay -As- You -Go Reserves will have a balance of $954,764 to be used to fund future projects. The Public Works Department buys materials in bulk to save money. The Department then stores these materials at its Service Center located on Dick Fisher Drive. The one downside of buying material in bulk and storing it on site is finding places to store certain material that should not be exposed to the elements. This specifically refers to concrete, sandbags and thermo pavement marking materials. Adding covered space to the existing dry storage building at the Public Works Service Center is proposed to be funded with the Pay- As -You- Go Reserves, and will allow needed storage space for materials that must be kept out of the elements. The additional 1,600 square feet of roof cover will give covered space to store concrete, sandbags and thermo pavement marking materials and allow equipment currently stored outside in the elements to be stored in the storage building. The covered space will cost $30,000. Currently, the Public Works Department has trouble cleaning drainage ditches of debris with its front end loader. The loader is too large to fit into small, confined spaces. A smaller, skid steer loader would allow the different divisions of the Public Works Department to perform various functions in tight and confined spaces. The Streets Division could clear ditches with low clearance bridges. The Utility Division would be able to get the loader into residents' backyards to excavate. And, the Utility Construction Division could use the loader to move stockpiles of fill for pipe replacement. The skid steer loader is recommended for this funding and is estimated to cost $50,000. A portion of the access driveway at Fire Station #2 on Rufe Snow Drive, South of Glenview Drive is deteriorating due to its proximity to a drainage ditch to the north. The deteriorated driveway can cause damage to Fire Department vehicles and injury to visitors. Repairing the damaged half of the driveway is the third project proposed to be paid with these funds, and is estimated to cost $42,400. The City Council discussed placing a wireless network in the City for municipal departments and possible public use. Council authorized Staff to conduct a study of the feasibility of offering such a network. A wireless provider called RedMoon, Inc. was conducting a feasibility study for Richland Hills and Haltom City and offered to conduct a study for the City at no cost. After RedMoon Inc. completes the assessment of the feasibility and cost to implement a wireless network for various City departments to use, the Information Services Department will implement a pilot wireless network at a determined high traffic area, possibly Rufe Snow Drive at NE Loop 820. The pilot network will be approximately one square mile. The pilot network will not be open to the public but will be restricted to City use. Implementation of a pilot system will provide the necessary feedback regarding range, speed and reliability, as well as supply solid data regarding what applications and functions the City performs that can be mobilized. Upon successful completion of the test period, the pilot area would become the cornerstone for build out of the rest of the City's wireless mesh system. The pilot wireless network costs $80,000. "Leading the Way" Program To ensure that current as well as future City leaders are equipped with the necessary skills to be effective, it is proposed that a program titled "Leading the Way" ( Leadership /Employee /Management) Development Program for improving leadership and management skills be implemented city wide. Training for experienced leaders, new and future leaders, and all employees will be planned. Experienced leaders will learn to improve and enhance their leadership styles. New and future leaders will learn how to understand people and lead them. And, all other employees will have a communication class that teaches them about different communication styles and addressing behaviors that negatively impact productivity and customer service. The training will be given across all departments and will not be a one time training. If this training workshop proves effective and helpful it will continue in the future. The training is estimated to cost about $25,000 and monies will come from the General Fund. Proposed FY 2007/2008 Show Cause Requirements - Municipal Court There are several adjustments that need to be made in Municipal Court to better serve its customers and to address the workload increases resulting from state mandates. These needed improvements can be financed using the court fines. During the 2007 Texas State Legislature, a bill was passed to allow all cases with deferred disposition to "show cause" as to why the person did not complete their deferred disposition. This is typically a payment plan to pay fines resulting from citations and is authorized by the Judge. Currently "show cause" is only required on traffic citations. The new law makes it a requirement for all citations. Because of the new law, an additional 8,000 - 10,000 letters must be sent to defendants each year to require those defendants to appear in court. An additional court records clerk is needed to handle the increased workload in the records office and a part time bailiff is needed to assist with processing the additional 8,000 - 10,000 people that will appear before the judge. The additional clerk and part time bailiff are proposed to be hired in January 2008. Estimated costs are $45,111 for three quarters of the year and will come from the General Fund. Improving Efficiency Through Document Imaging- Municipal Court Municipal Court implemented the Laserfische document imaging system in 2005. Laserfische allows all citations and defendant files to be scanned and indexed reducing the number of paper files required and thereby reducing storage space requirements. The Court processes 25,000- 30,000 violations per year, creating 125,000 - 150,000 documents per year that must be scanned and indexed. Based on the time required to process the documents and the number of documents to be scanned, the Court needs an additional full time document imaging clerk to complete the scanning of these documents. The Court has tried to use part-time employees and overtime to keep up with this workload, but have not been able to make any significant headway. Without adding a person to concentrate solely on document imaging, the Court may need to discontinue the program because it cannot keep the imaging of records current. Document imaging is valuable because it keeps all documents in one electronic file, it reduces needed storage space and it allows the Court to run more efficiently because the Judge can view all needed documents from a laptop. The additional document imaging clerk would be hired in January 2008 and is projected to cost $31,589 in FY 200712008. The salary will be designated in the General Fund. Technology Improvements to Increase Productivity- Municipal Court The Municipal Court software system, Incode, is in an older type database called CCBAL. This older system cannot interface with Laserfische, the Autocite download of warrants or the Teleworks Interactive Voice Response system we recently implemented to allow payment of citations on line and over the telephone. Conversion of the current database to a better SQL server database would allow the Court to operate more efficiently with regard to Autocite hardware, Laserfische software and in getting information downloaded from the Incode software system for the Court and Police Department. Autocite devices are used by the Traffic Enforcement Division of the Police Department to issue citations. With the current CCBAL database we are unable to download warrants to the Autocite units. Converting the database to a SQL server will allow the download of warrants and could allow us to clear more warrants because the traffic officers issue most of the citations from the Police Department. A new server would also allow the Court's Laserfiche system to interface with Incode software. A SQL server would allow scanned documents to be included in a defendant's Incode file and clerks would not have to look in two places for information on the defendant, making the workflow more efficient and effective. The $21,000 being requested would include the cost of a new server as well as the cost to convert the existing CCBAL database to SQL. This cost would be xxxii offset with Court Technology revenues and would have no net affect on the bottom line budget. As mentioned above, traffic officers in the Police Department use hand held Autocite devices to issue citations in the field. We have successfully used these devices for a number of years. Two additional Autocite units are needed for the traffic officers. One would be used by the sergeant of the division with the other being an extra to be used when a unit goes down and has to be shipped to the manufacturer for repairs. The cost for the two devices is $11,000 and would be offset with Court Technology revenues thereby having no net affect on the bottom line budget. The purchase of the Autocite units is a service enhancement in the General Fund. Opening our New Library The new North Richland Hills Public Library will open the First Quarter of 2008 and will bring several additional costs to the City. These additional costs will include moving expenses, additional library staff (10 part time employees equaling 3.3 FTE), print management software /wireless communications (which will partially be paid for with a print management fee) and added costs for electricity, maintenance and supplies. All the service enhancements are in the General Fund. The added building maintenance is funded with monies transferred from the General Fund to the Building Services Fund. Moving costs are estimated at $55,000 and the move should take three to four weeks to complete. Books will be boxed, shelves dismantled, and the entire library will be moved to the new location where shelves are reassembled and books are placed on the shelves. The Library will be closed during the move. Patrons will be served at other libraries in the area. Increased staffing is needed to serve citizens adequately in the larger library space. The proposed part time positions will be placed in several capacities of the library. Clerks will be added to help with increased circulation, pages will shelve books, assistants will answer patron questions and technicians will monitor computer use. The total cost of the additional positions is $135,508 and employment is planned to begin in November so the new staff members can help with the move to the new location. Currently, the library staff monitors and administers public computer use at the Library. The new library will have 47 public access computers. Software is available to coordinate internet sign -ups and time limits and provide cost recovery for public printing with lower staff oversight. The software will require fewer staff members to monitor computer use. The software will cost $9,886 but $6,000 of that will be recovered in printing fees. xxxiii The new library will have over 15,000 square feet more than the current library and will spread material and staff over two floors. It would be helpful for employees to have a communication system to alert each other to emergencies and customer needs. A wireless communication system would allow employees to be contacted anywhere in the building and not be tied to a desk or station. Such a system can be acquired for $8,500 which will allow staff to have push button communication badges to communicate around the library. The new library will not only increase the amount of square footage to be cleaned, but the time needed to keep the library in its "nevi' condition will also increase. This new building will be a showplace for the City, and our goal is to keep it in showplace condition. To do so will require additional custodial staff. We are proposing to add one full time and one part time custodial position to clean and maintain the new Library. These positions would be hired in January and would cost $43,634 for three quarters of the year. Hiring them in January would allow time for them to be properly trained prior to the opening of the new library. Along with new custodial personnel, there will be increased costs for cleaning supplies, maintenance contracts such as pest control and security as well as other supplies to maintain the facility. The increase for these costs is estimated to be $17,400. In addition to the personnel, supplies and maintenance, opening the new Library will cost the City more for electricity. It is estimated that the facility will increase electric costs by approximately $37,500. Although the new facility will be more energy efficient than the existing facility, there is more space to heat, cool and light and therefore will increase costs for the City. In total it is estimated that opening the new Library will increase costs $98,534 for maintaining the building during FY 2007108. As per Council direction, we will continue to plan for the library services south of NE Loop 820 though no budgetary funds will be set aside in FY 2007/2008 for it. Establishing Equipment Replacement Schedule -Golf Course Iron Horse Golf Course has seen improved play since the greens were rehabilitated last year and the clubhouse was renovated this spring. An important element to keeping that improved play is proper maintenance of the course. Unfortunately, the golf course's maintenance vehicles and equipment are aging and are in need of major repair and replacement. The golf course needs $162,000 in FY 2007/2008 to replace various pieces of maintenance equipment ranging from gators to tractors to pesticide sprayers. It is proposed that the City's General Fund loan the Golf Fund the needed $162,000 to replace the equipment. The Golf Fund will then repay the General Fund from its reserves beginning in 2012 once its current loan payments are XNMV completed. The City is also placing the maintenance equipment on a replacement schedule so that the replacement of equipment is on a fairly even schedule year to year with no large spikes experienced in a given year. Improving our Emergency Dispatch Service The public safety communication center located in the Police Department is the nerve center for dispatching police, fire and EMS units. In addition, all 911 calls in the City are answered at this location. Based on our current personnel, it is common to have no more than two people on duty during certain shifts. This creates a situation where the dispatchers must multi -task on important duties. The addition of three dispatchers will allow our current dispatchers to leave their desks during shifts. Currently if only two dispatchers are on duty they must remain in the communication center during their shift, taking short breaks only as absolutely needed. The additional dispatchers would also be trained to answer phone calls and as time allowed could take minor reports over the phone which would reduce the amount of calls sent out to officers in the field. This creates additional time for the officers in the field to conduct proactive crime measures to help with complaints or reduce crime. The three dispatchers are proposed to begin in April and cost $78,427. Crime Control District funds will pay the additional cost of the three dispatchers. Restructuring Police Support Services Currently a sergeant in the Police Department functions as the technical services supervisor. This position supervises two civilian technicians in the property and evidence area as well as supervises a civilian quartermaster position. After much evaluation, it has been determined that it is not necessary to have a sworn police officer be the technical services supervisor. This job could be done by a civilian thereby freeing up a police officer. In addition to taking over the duties as described above, the civilian technical services supervisor could also manage the day to day operations of the red light camera program to assist in resolving issues and oversight of the program, as well as be responsible for the outfitting, or making ready, of all new police vehicles. Having the position be responsible for these areas would free up not only a sergeant, but a lieutenant and officer as well to return to regular duties as sworn officers. The total cost for this position, including salary and benefits, is $63,631. There is an opportunity to fund a portion of this position through the red light camera program since it will be responsible for oversight of the program. It is proposed that 35 %, or $23,631, be funded from the Traffic Safety Fund. The cost of this position would come out of the gross revenues received from the red light cameras, not the portion of revenues we share with the State. XXXV The remaining 65% of the Supervisor's salary is proposed to come from the Crime Control District Fund at $40,000. Facade Improvement Program The City of North Richland Hills has several mature corridors that serve as the backbone of the City's commercial economy. These corridors include Rufe Snow Drive, Davis Boulevard and Boulevard 26. While a limited number of undeveloped tracts remain along these corridors, revitalization of the aging structures in these areas will be important for the long -term financial stability of the City as it approaches build -out. To improve these mature commercial corridors, the Economic Development Department is introducing the Facade Improvement Program (FI P). FI P will encourage private investment in the single- tenant buildings and community strip centers that primarily populate these corridors by offering matching grants to property owners and managers who improve their buildings and properties in three ways. The City will pay up to 50% of the cost to remove non conforming signs, construct conforming signs and improve facades. Matching grant programs for facades and signs have been in place for many years around the country, and sufficiently funded and well administered programs have been very successful. As some of the more blighted buildings in an area start to shine with new paint, landscaping and signage, developer- investors become more comfortable investing in properties in that area. We feel the City's initial investment will spawn private investment. FIP will have maximum thresholds of City funding for each of the three types of improvements. The City will contribute $10,000 for facade improvements, $3,000 for sign replacement/improvements, and $2,000 for sign removal. We believe the City's average contribution in a matching grant for a business improvement project would be $5,000 out of $10,000 in total improvement costs. Different thresholds would be utilized for multi- tenant properties, and possibly for those that have extensive frontage along the thoroughfare. An internal committee with the oversight of the Economic Development Director would review and approve the applications. Later it would provide oversight to the projects. To be considered for the program, an owner and/or business could not have any existing violations of the City's codes or ordinances and must be current on all property taxes. The program will target visual enhancements beyond the minimums required by the City. If a business has a non - conforming sign its application will only be considered if the overall project includes the removal of that non - conforming sign. Any additional signage must be in conformance with the sign ordinance. The City expects to help 20 businesses with the proposed $100,000 funding. It is recommended the money come from the Gas Development Fund. When the xXXvi Gas Fund was created one of the beneficiaries of the Fund was economic development projects. FI P is in the Capital Improvement Projects budget. Traffic Enforcement Enhancement The Traffic Division of the Police Department is assigned eight officers and one sergeant for traffic enforcement in our City. There are currently eight motorcycles used by these officers with the sergeant using a patrol vehicle. When a motorcycle is in the shop for repairs or routine maintenance, the officers must use a patrol vehicle to perform their duties. Although using a car gets the officers on the street, motorcycles are preferred in traffic enforcement because the motorcycles allow the officers safer and easier access to our crowded roadways. The addition of three police motorcycles will allow the City's traffic officers to continue to patrol when their primary motorcycle is being repaired and allow the traffic supervisor to also have a motorcycle. The three motorcycles are estimated to cost $75,900 total and would be funded in the Traffic Safety Fund. 100 Best Places in the United States... Best Employees The City of North Richland Hills received national recognition by being named one of the "100 Best Places to Live" in the United States by Money Magazine in 2006. This accomplishment could not have been possible without the hard work, creativity and dedication of our employees. National recognition is nice, but more important is the high marks given by the citizens of North Richland Hills as reported during our last citizen satisfaction survey. To continue to achieve high levels of customer satisfaction the City must be able to recruit and retain quality employees. This year's budget provides our employees a competitive compensation and benefits package which allows the City to retain a wealth of knowledge and experience as well as the ability to locate future employees who have the same passion for quality and customer service as our current team of employees. North Richland Hills has a history of hiring and retaining skilled, educated and experienced people, and providing a quality compensation and benefits program is essential to ensuring that continues. With this in mind we believe it necessary to provide competitive compensation and benefit improvements in FY 200712008. Market Adjustment Plan for FY 2007/2008 On February 24, 2003, Council adopted a Resolution (No. 2003 -01) recognizing the need to compensate employees at a market competitive level in order to retain and attract quality individuals. As part of this Resolution, Council )0CW11 instructed Staff to conduct annual salary surveys to determine market changes. As discussed during last year's budget work session, an analysis of survey data going back to 2003 showed relatively little movement in the market from 2003 to 2005. However, survey data showed significant movement with pay ranges over the last 12 months leading up to that budget work session. To maintain the Council's goal of positioning our salary range midpoints at the market average, City Council approved the funds to provide for two adjustments to the salary ranges in FY 200612007. The first adjustment occurred in January 2007. The Public Safety Pay Plan was adjusted 5.42% and the Professional /Administrative and General Services Pay Plans were adjusted 4.51%. The second adjustment occurred in April 2007. The Public Safety Pay Plan was adjusted 4.83% and the Professional/Administrative and General Services Pay Plans were adjusted 2.55 %. To simplify the budget process, most cities adjust their pay ranges October 1 of each year. To determine additional movement with the market, the Human Resources Department will conduct its annual benchmark survey of our ten comparison cities in October 2007. At this time, the City will know what additional adjustments will be necessary to the pay plans in January 2008 to reach the goal of positioning our salary range midpoints at the market average. As in years past, survey data is coupled with the Employment Cost Index (ECI) to determine the level of adjustment necessary to move our pay range midpoints to the market average. The ECI is a component of the National Compensation Survey compiled by the U.S. Department of Labor every quarter to measure the changes in compensation costs for both public and private sector employers. Incorporating the public sector ECI into the pay plan adjustments gives a more accurate picture of how salaries have changed for all public sector employers while still considering the local competition that exists among cities to attract quality employees. Based on the most recent activity as well as discussions with other cities, we anticipate the market adjustment in January 2008 not to exceed 4% for the Public Safety Pay Plan and 3.5% for the Professional/Ad min istrative and General Services Pay Plans. Due to the differences between the two pay plans, as in the past, the implementation of the 2008 market adjustment for the Public Safety Pay Plan will be different than the Professional/Ad min istrative and General Services Pay Plans. All Public Safety employees will remain on step and their salaries will be adjusted along with the pay ranges. Professional/Administrative and General Services pay ranges will be brought to the market average with no further adjustment to employee salaries. Compression issues that may occur at the bottom of the General Services Pay Plan will be addressed on an individual basis. Only those employees who achieved an acceptable rating on their last performance evaluation are eligible to receive the market adjustment. Employees not receiving the market adjustment will have their salaries frozen and will be eligible for an increase at the time of their next merit review. xxxviii Management will continue to evaluate the City's compensation program to determine its competitiveness and fairness. As always, future adjustments will be made in accordance with market movement and financial considerations. Continuation of Merit Pay System In 1996, the City Council adopted a merit pay for performance system that reinforces the value of productivity by rewarding those employees that maintain an acceptable level of performance. Through the Merit Pay System, employees receive an annual performance evaluation, and those employees who achieve an acceptable rating are eligible to receive an increase in pay for good job performance. This system was evaluated by the Compensation and Classification Study that was completed in 2003, and it was recommended to continue the Merit Pay System as a reward for good job performance. After careful consideration and review, the adopted budget provides for the continuation of the Merit Pay System by providing for an increase in pay for all full time employees that receive an acceptable performance evaluation. Those employees that do not receive satisfactory evaluations will not be eligible for a salary increase. We believe it is important to continue the Merit Pay System so that the City continues to provide incentive and acknowledgement to employees who perform their jobs well. North Richland Hills citizens benefit by receiving good customer service and quality City services from motivated employees. Employee Health Insurance for Plan Year 2008 Through June 2007, the City's health plan is performing well with medical expenditures continuing to track under budget. With the positive claims experience over the last several years we are not recommending any plan design modifications such as increases in co -pays, deductibles, or out -of- pocket maximums for Plan Year 2008. Based on our ongoing review of our medical claims experience, next fiscal year we are projecting an overall cost increase of approximately 10 %. Employees will be expected to share in that increase in cost through an increase in monthly medical premiums. To maintain the cost - sharing ratio, we will be increasing employee premiums across the board 8% as well as continuing to follow our strategy for rebuilding reserves by adding an additional $5 to employee monthly health insurance premiums. Effective January 2008, medical premium increases will range from a high of $29 per month to a low of $8 per month depending on the plan and coverage options chosen. With the increase to the City's and the employee's contribution, in 2008 we expect to maintain our funding goal of 20% of revenue contributed through employee medical premiums and 80% of revenue contributed by the City. Although the City's claims experience has been positive over the last several years, the City will continue to proactively monitor and address health care costs through plan design changes as well as employee wellness education and prevention efforts. The balance between offering a competitive benefit and the costs associated with doing so will continue to be a challenge for both public and private employers. The changes that the City has made over the years to our health plan coupled with our increasing health and wellness education efforts clearly show the benefits of applying creative solutions to a tough problem. Financing For Fiscal Year 2007/2008 The FY 2007/2008 proposed budget is balanced and sound. Overall, the budget will result in the continuation of core functions at the same high level of service, while expanding some services to plan for the future and address priorities. The proposed FY 2007/2008 budget is based on maintaining the current 57¢ property tax rate. If approved by Council, this will be the 15th consecutive year for maintaining the current tax rate. The budget includes a 5% increase to sales tax revenues as well. The proposed budget also includes the 3rd year implementation of the Utility Rate Study. The Study, approved by Council and implemented in December 2005, included a three year phased plan. Below are the rates according to the approved plan. The rates were established to meet the revenue requirements for the system's operation and maintenance costs. Water 2006 2007 2008 Base $9.05 $9.12 $9.30 Volume $2.51 $2.58 $2.69 Sewer 2006 2007 2008 Base $7.22 $7.27 $7.27 Volume $1.17 $1.17 $1.17 In addition, the City anticipates an increase in the Fort Worth/Trinity River Authority water and sewer pass through rates in FY 200712008. Costs associated with payments to Fort Worth and TRA are not controllable by the City, and therefore are calculated separately. The development of natural gas on both private and City property will continue to provide a source of revenue in the coming year. It is anticipated that the City will receive additional bonus money as well as lease revenue. The budget also NO includes monies for the Commercial Property Enhancement Program and the Preventive Street Maintenance Program in accordance with the Policy on Uses of Revenues from Gas Exploration /Production approved by Council in 2006. Staff will continue to seek new outside revenue sources including grants and increased donations for the Library Book Fund and the Animal Adoption Rescue Center Expansion Fund. Summary and Conclusion Department Directors along with the Finance and Budget Departments and City Management Team have put a great deal of time and effort into preparing a balanced budget, maintaining a stable tax rate and implementing the City Council's Goals and Objectives. We are grateful for their dedication and teamwork. We could not have met the challenges and presented a sound budget document without their cooperation and efforts. We also appreciate our many community partners who continue to work hand in hand with the City to help us build a vibrant community. The City Council should also be commended for its leadership and vision. The Council's Goals and Objectives are the driving force that ensures the City will continue to maintain the high quality of life that our residents enjoy. It is being recommended that the City make some adjustments to the revised FY 2006/2007 budget to address some of our highest priorities and needs. These include: • 2007 Citizens Survey • Home Fund Grant Participation • Improving Fitness, Safety and Efficiency at Fire Stations • Continuing Initiatives for "Pay -As- You -G o" Improvements • "Leading the Way" Program Through careful planning and prioritizing, we have also been able to recommend the following service enhancements in the FY 2007/2008 budget: • Show Cause Requirements - Municipal Court • Improving Efficiency Through Document Imaging - Municipal Court • Technology Improvements to Increase Productivity- Municipal Court • Opening our New Library • Establishing Equipment Replacement Schedule -Golf Course • Improving our Emergency Dispatch Service • Restructuring Police Support Services • Facade Improvement Program • Traffic Enforcement Enhancement xli To provide the highest level of services to our community, it is imperative for the City to continue to retain quality employees. Therefore in the FY 2007/2008 budget the Merit Pay Program is planned to continue as established by the City Council to provide incentives and acknowledgement to employees who perform their jobs well. We also recommend a market adjustment in FY 2007/2008 to remain competitive and retain the quality employees that North Richland Hills is well known for. The Employee Medical Plan will not change, but premiums to employees will increase in accordance with our six -year strategy for cost sharing and cost reduction. In the coming year we are also projecting increases in the cost of electricity, gasoline, building materials and other products that the City must purchase. We will absorb as must of the cost increases as possible by increasing efficiency and using our building, vehicles and materials wisely. While we anticipate a 5% overall increase in spending in the General Fund for FY 200712008, our careful budgeting and planning will allow us to maintain the current 57¢ tax rate for the 15th year in row. With a City Council committed to excellence, dedicated community partners and employees with a desire to achieve their best and excel, it is little wonder why North Richland Hills continues to prosper and be the City of Choice to Live, Work and Play. Respectfully Submitted, ff Larry J. Cunningham City Manager xlii FISCAL YEAR 2007 -2008 SCHEDULE 1 - SUMMARY OF REVENUES AND EXPENDITURES GENERAL FUND =r,4 »0I11k0J *K City Council $82,833 $94,824 ADOPTED REVISED PROPOSED City Manager ACTUAL ACTUAL BUDGET BUDGET BUDGET Communications FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 REVENUES 420,087 424,995 455,137 459,830 483,277 Taxes $22,992,879 $24,578,129 $24,472,078 $25,083,616 $26,494,459 Fines & Forfeitures 1,787,359 2,065,177 2,014,500 2,101,496 2,570,000 Licenses & Permits 1,641,665 2,481,875 1,674,250 1,627,050 1,620,150 Charges for Service 2,009,019 2,178,610 2,186,970 2,216,106 2,366,235 Intergovemmental 3,280,884 3,198,934 3,380,460 3,380,460 3,139,268 Miscellaneous 569,190 900,903 757,747 854,672 787,355 Sub -Total Revenues $32,280,996 $35,403,628 $34,486,005 $35,263,400 $36,977,467 Appropriation from Fund Balance $997,250 $753,800 $109,800 $513,064 $277,800 TOTAL REVENUES $33,278,246 $36,157,428 $34,595,805 $35,776,464 $37,255,267 =r,4 »0I11k0J *K City Council $82,833 $94,824 $135,252 $135,252 $134,755 City Manager 484,804 490,731 521,123 522,088 558,180 Communications 424,237 442,549 485,200 489,543 520,693 City Secretary 420,087 424,995 455,137 459,830 483,277 Legal 462,578 337,223 529,132 320,000 350,000 Human Resources 99,902 111,860 117,189 117,930 119,940 Finance 709,500 703,261 787,291 779,550 817,447 Budget & Research 314,397 322,833 343,573 344,708 373,443 Municipal Court 1,000,643 1,050,358 1,056,030 1,073,157 1,127,054 Planning and Development 804,197 832,928 969,061 983,586 1,033,506 Economic Development 96,995 89,241 121,486 122,775 145,097 Library 1,469,798 1,411,958 1,553,635 1,572,373 1,718,986 Neighborhood Services 1,209,375 1,239,857 1,530,900 1,545,297 1,554,028 Public Works 2,727,713 2,816,188 3,501,579 3,524,020 3,633,041 Parks & Recreation 2,287,071 2,232,305 2,476,307 2,519,701 2,627,397 Police 8,512,867 8,793,276 9,263,427 9,590,900 10,037,873 Fire 7,708,798 8,138,663 8,393,570 8,661,830 9,273,059 Building Services 787,377 629,196 460,656 460,656 529,754 Adopted Market Adjustment 0 0 620,395 0 0 Non - Departmental 506,757 1,112,124 1,082,230 1,152,365 1,104,647 Sub -Total Departments $30,109,929 $31,274,370 $34,403,173 $34,375,561 $36,142,177 Reserves & Other Expenditures Reserve for Capital Improvements $200,000 $685,000 $50,000 $150,000 $50,000 Reserve for Rail Station1820 Facility 0 900,000 0 250,000 0 Proposed Market Adjustment 0 0 0 0 305,961 Legal Settlement 650,030 691,170 0 0 0 Reserve for Self Insurance Fund 347,250 303,800 109,800 109,800 115,800 Reserve for Support Services Funds 0 780,000 0 0 0 Previous Year Encumbrances 403,264 Sub -Total Reserves and Other $1,197,280 $3,359,970 $159,800 $913,064 $471,761 Proposed Service Enhancements $448,721 $578,128 TOTAL EXPENDITURES $31,307,209 $34,634,340 $34,562,973 $35,737,346 $37,192,066 BALANCE $1,971,037 $1,523,088 $32,832 $39,118 $63,201 FISCAL YEAR 2007 -2008 SCHEDULE 2 - SUMMARY OF REVENUES GENERAL FUND ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 TAXES Current Property Taxes $10,278,342 $11,140,155 $11,626,886 $11,626,886 $12,595,403 Delinquent Property Taxes 232,207 155,782 150,000 150,000 150,000 Penalty and Interest 169,005 158,295 110,000 125,000 115,000 Franchise Fees 3,541,130 3,855,170 3,694,762 3,697,164 3,516,000 Utility Fund Franchise Taxes 615,871 705,119 620,983 600,297 775,818 Sales Taxes 7,711,454 8,095,474 7,799,447 8,335,519 8,788,488 Mixed Beverages 115,143 123,355 110,000 125,000 130,000 Payment in Lieu of Taxes 329,727 344,779 360,000 423,750 423,750 Sub -Total $22,992,879 $24,578,129 $24,472,078 $25,083,616 $26,494,459 FINES AND FORFEITURES 13,772 14,178 14,000 15,500 16,000 Municipal Court Fines $1,490,014 $1,722,444 $1,680,500 $1,746,496 $2,210,000 Library Fines 63,252 67,763 64,000 75,000 80,000 Warrant & Arrest Fees 234,093 274,970 270,000 280,000 280,000 Sub -Total $1,787,359 $2,065,177 $2,014,500 $2,101,496 $2,570,000 LICENSES AND PERMITS Building Permits $778,535 $1,198,237 $750,000 $750,000 $740,000 Electrical Permits 70,059 105,253 70,000 55,000 55,000 Plumbing Permits 90,962 121,598 80,000 85,000 80,000 Mechanical Permits 52,435 87,483 55,000 70,000 65,000 Gas Drilling Permits 0 5,000 25,000 25,000 35,000 Miscellaneous Permits 69,147 79,050 66,050 70,550 65,550 Apartment Inspection Fees 69,781 77,886 83,000 83,000 83,000 Curb & Drainage Insp. Fees 46,212 160,041 60,000 20,000 20,000 Re- Inspection Fees 15,540 12,123 15,000 10,000 10,000 Business License Fees 13,772 14,178 14,000 15,500 16,000 Contractor Registration Fees 76,328 82,142 73,500 80,000 80,000 Plan Review /Application Fee 51,243 169,508 50,000 25,000 25,000 Animal License/Adoption Fees 60,139 64,127 65,500 65,000 65,000 Animal Control Impoundment 65,956 84,787 65,000 60,000 65,000 Crematorium Revenues 1,456 13,739 16,000 15,000 15,000 Auto Impoundment Fees 11,955 18,179 15,000 15,000 15,000 Food Service Permits 103,978 102,770 102,000 102,000 103,000 Food Managers School 18,014 17,317 16,000 17,500 18,000 Fire Inspection /Alarm Fees 12,821 31,854 18,800 26,900 27,000 Publicity Fees - Recreation 33,332 36,603 34,400 36,600 37,600 Sub -Total $1,641,665 $2,481,875 $1,674,250 $1,627,050 $1,620,150 FISCAL YEAR 2007 -2008 SCHEDULE 2 - SUMMARY OF REVENUES GENERAL FUND iy�IRIN=14W_101=101I R Interest Income $223,514 $573,854 ADOPTED REVISED PROPOSED Sale of City Property ACTUAL ACTUAL BUDGET BUDGET BUDGET Grant Proceeds -Crim. Justice FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 CHARGES FOR SERVICE 51,302 21,951 20,047 20,047 25,000 Park Facility Rental $5,865 $6,868 $5,800 $5,800 $6,200 Recreation Center Rental 10,859 13,394 12,000 12,600 13,000 Ambulance Fees 1,073,923 1,198,652 1,262,680 1,249,985 1,373,895 Garbage Billing 232,039 232,693 232,000 232,700 232,700 Contributions 10,000 10,000 10,000 10,000 10,000 Maps & Codes 22 0 100 0 40 Recreation Fees 381,280 418,346 387,400 410,921 422,450 Cultural Arts 7,542 6,239 7,500 1,500 7,800 Athletic Revenue 124,887 116,393 107,600 117,600 121,650 Recreation Special Events 17,288 16,933 14,890 17,000 17,500 Planning & Zoning Fees 42,522 35,246 32,000 34,000 32,000 Sale of Accident Reports 24,850 24,778 25,000 24,000 24,000 Vital Statistics 59,661 91,494 75,000 90,000 90,000 Mowing 18,265 7,574 15,000 10,000 15,000 Video Services & Sales 16 0 0 0 0 Sub -Total $2,009,019 $2,178,610 $2,186,970 $2,216,106 $2,366,235 INTERGOVERNMENTAL Indirect Costs: General CIP $155,000 $155,000 $155,000 $155,000 $155,000 Utility Fund 1,283,271 1,347,435 1,414,807 1,414,807 1,485,547 Park & Rec Facilities Dev. Corp. 253,659 261,269 274,332 274,332 288,049 Crime Control District 401,941 300,000 200,000 200,000 200,000 Aquatic Park Fund 94,588 97,426 102,297 102,297 107,412 Direct Costs: General Fund Police Salaries - CCD 1,092,425 1,037,804 934,024 934,024 803,260 Gas Development Fund 0 0 300,000 300,000 100,000 Sub -Total $3,280,884 $3,198,934 $3,380,460 $3,380,460 $3,139,268 iy�IRIN=14W_101=101I R Interest Income $223,514 $573,854 $480,000 $593,500 $478,185 Sale of City Property 9,109 2,391 0 0 0 Grant Proceeds -Crim. Justice 0 22,080 10,000 10,000 15,000 Grant Proceeds -CDBG 51,302 21,951 20,047 20,047 25,000 Overtime Reimbursements 13,257 14,728 8,000 5,000 5,000 Tax Attorney Fees 68,528 63,634 50,000 50,000 55,000 Other Income 48,397 58,661 39,700 11,620 37,170 SRO Reimbursement (BISD) 155,083 143,604 150,000 164,505 172,000 Sub -Total $569,190 $900,903 $757,747 $854,672 $787,355 I_1 > > :t•] ;I :i 1_% 1 10101 a :t•] iy� 111101 el R_10 IN -- Legal Settlement $650,000 $650,000 0 0 0 Insurance Reserve 347,250 103,800 109,800 109,800 115,800 Golf Course Equipment Loan 0 0 0 0 162,000 Previous Year Encumbrances 0 0 0 403,264 0 Sub -Total 997,250 753,800 109,800 513,064 277,800 TOTAL REVENUES $33,278,246 $36,157,428 $34,595,805 $35,776,464 $37,255,267 FISCAL YEAR 2007 -2008 SCHEDULE 3 - SUMMARY OF EXPENDITURES GENERAL FUND ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 City Council $82,833 $94,824 $135,252 $135,252 $134,755 City Manager $484,804 $490,731 $521,123 $522,088 $558,180 Communications 284,617 294,954 309,336 307,128 329,003 Public Information $179,757 $181,675 $203,140 $205,074 $214,336 Citicable 244,480 260,874 282,060 284,469 306,357 Total Communications $424,237 $442,549 $485,200 $489,543 $520,693 City Secretary City Secretary $238,716 $221,689 $257,477 $259,271 $277,722 Record Management 181,371 203,306 197,660 200,559 205,555 Total City Secretary $420,087 $424,995 $455,137 $459,830 $483,277 Legal $462,578 $337,223 $529,132 $320,000 $350,000 Human Resources $99,902 $111,860 $117,189 $117,930 $119,940 Finance Accounting & Administration $482,260 $474,088 $547,245 $537,221 $591,569 Purchasing 227,240 229,173 240,046 242,329 225,878 Total Finance $709,500 $703,261 $787,291 $779,550 $817,447 Budget & Research $1,469,798 $1,411,958 $1,553,635 $1,572,373 $1,718,986 Budget $78,602 $94,042 $96,345 $97,023 $99,873 Tax 197,043 194,928 205,207 205,373 226,038 Internal Audit 38,752 33,863 42,021 42,312 47,532 Total Budget & Research $314,397 $322,833 $343,573 $344,708 $373,443 Municipal Court Administration /Prosecution $271,064 $309,416 $275,377 $290,313 $293,102 Court Records 305,308 307,336 322,240 324,657 345,823 Warrants 284,617 294,954 309,336 307,128 329,003 Teen Court 57,073 59,516 63,651 64,427 68,781 Judicial 82,581 79,136 85,426 86,632 90,345 Total Municipal Court $1,000,643 $1,050,358 $1,056,030 $1,073,157 $1,127,054 Planning and Development Administration $0 $54,940 $74,599 $75,332 $78,453 Inspections 616,703 524,349 611,628 628,020 650,782 Planning 187,494 253,639 282,834 280,234 304,271 Total Planning and Development $804,197 $832,928 $969,061 $983,586 $1,033,506 Economic Development $96,995 $89,241 $121,486 $122,775 $145,097 Library General Services $188,535 $148,453 $200,754 $203,018 $211,384 Public Services 684,807 659,147 699,622 710,376 804,756 Technical Services 596,456 604,358 653,259 658,979 702,846 Total Library $1,469,798 $1,411,958 $1,553,635 $1,572,373 $1,718,986 FISCAL YEAR 2007 -2008 SCHEDULE 3 - SUMMARY OF EXPENDITURES GENERAL FUND ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 Neighborhood Services Neighborhood Resources $246,527 $258,313 $289,940 $292,972 $293,060 Humane Division 497,983 533,699 613,455 617,823 670,961 Consumer Health 241,796 228,321 271,485 274,222 267,686 Code Enforcement 223,069 219,524 291,020 295,280 322,321 Special Programs 0 0 65,000 65,000 0 Total Neighborhood Services $1,209,375 $1,239,857 $1,530,900 $1,545,297 $1,554,028 Public Works 111,168 107,941 132,574 133,426 143,033 General Services $138,875 $146,595 $153,471 $155,260 $163,591 Traffic Control 869,189 892,989 1,047,996 1,056,162 1,062,930 Street & Drainage 1,719,649 1,776,604 2,300,112 2,312,598 2,406,520 Total Public Works $2,727,713 $2,816,188 $3,501,579 $3,524,020 $3,633,041 Park & Recreation $268,998 $279,042 $294,266 $295,388 $318,440 General Services $99,057 $110,747 $122,165 $123,433 $145,964 Parks Maintenance 967,421 952,217 1,131,061 1,140,603 1,186,737 Recreation Services 781,213 726,515 730,240 743,294 767,166 Athletic Program Services 182,278 186,660 201,323 218,349 217,787 Senior Adult Services 145,934 148,225 158,944 160,596 166,710 Youth Outreach & Cultural 111,168 107,941 132,574 133,426 143,033 Total Park & Recreation $2,287,071 $2,232,305 $2,476,307 $2,519,701 $2,627,397 Police $268,998 $279,042 $294,266 $295,388 $318,440 General Services $416,754 $496,102 672,997 677,799 717,484 Administrative Services 610,197 625,849 545,127 549,656 750,951 Criminal Investigation 1,685,522 1,658,525 1,799,025 1,888,840 1,978,420 Uniform Patrol 3,813,076 4,005,253 4,020,762 4,231,996 4,261,997 Tactical Unit 25,275 25,671 21,095 21,095 0 Technical Services 702,253 706,308 576,369 581,306 610,137 Detention Services 369,768 364,340 387,048 390,091 408,253 Properly Evidence 123,467 120,095 347,638 349,462 373,989 Communications 766,555 791,133 893,366 900,655 936,642 Total Police $8,512,867 $8,793,276 $9,263,427 $9,590,900 $10,037,873 Fire Department General Services $268,998 $279,042 $294,266 $295,388 $318,440 Operations 5,960,877 6,360,295 6,558,821 6,790,996 7,291,912 Emergency Medical 773,182 768,003 790,477 823,346 850,122 Fire Inspections 413,434 396,930 418,633 420,313 464,612 Emergency Management 292,307 334,393 331,373 331,787 347,973 Total Fire $7,708,798 $8,138,663 $8,393,570 $8,661,830 $9,273,059 Building Services $787,377 $629,196 $460,656 $460,656 $529,754 Adopted Market Adjustment $620,395 Non - Departmental $506,757 $1,112,124 $1,082,230 $1,152,365 $1,104,647 Sub -Total Departments $30,109,929 $31,274,370 $34,403,173 $34,375,561 $36,142,177 FISCAL YEAR 2007 -2008 SCHEDULE 3 - SUMMARY OF EXPENDITURES GENERAL FUND ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 Reserves & Other Expenditures Reserve for Capital Improvements $200,000 $685,000 $50,000 $50,000 $50,000 Reserve for Street Maintenance 0 0 0 100,000 0 Reserve for Rail Station Development 0 400,000 0 100,000 0 Reserve for 820 Facility Planning 0 500,000 0 150,000 0 Proposed Market Adjustment 0 0 0 0 305,961 Legal Settlement 650,030 691,170 0 0 0 Reserve for Self Insurance Fund 347,250 303,800 109,800 109,800 115,800 Reserve for Building Services Fund 0 100,000 0 0 0 Reserve for Equipment Services Fund 0 480,000 0 0 0 Reserve for Information Services Fund 0 200,000 0 0 0 Previous Year Encumbrances 403,264 Sub -Total Reserves and Other $1,197,280 $3,359,970 $159,800 $913,064 $471,761 PROPOSED NEW PROGRAMS /SERVICES 2007 Citizens Survey $11,000 Home Fund Grant Participation $25,000 Improving Fitness, Safety and Efficiency at Fire Stations $43,921 Continuing Initiatives for "Pay -As- You -Go" Improvements: Construction Materials Dry Storage Expansion $30,000 Equipment Purchase - Skid Steer Loader $50,000 Concrete Repairs at Fire Station #2 $42,400 Pilot Vlfireless Network $80,000 Increase to IS Reserves: Technology Productivity Enhancements (see Schedule 21, page 27) $141,400 "Leading the Way" Program $25,000 Municipal Court Enhancements Show Cause Requirements (1 Full -Time Clerk, 1 Part Time Bailiff) $45,111 Improving Effi ci ency Th rou gh Document Imaging (1 Full -Time Clerk) $31,589 Technology Improvements to Increase Productivity $21,000 Additional Autocite Units (2) $11,000 Opening Our New Library: Moving Services $55,000 Additional Library Services Staffing (10 Part -Time Staff or 3.3 FTEs) $135,508 Print Management SoftwareMfireless Communications $18,386 Building Services - Cost of Service $98,534 Establishing Equipment Replacement Program at Golf Course $162,000 Sub -Total Proposed New Program stServi ces TOTAL EXPENDITURES $31,307,209 $34,634,340 $34,562,973 BALANCE $1,971,037 $1,523,088 $32,832 448,721 $35,737,346 $39,118 578,128 $37,192,066 $63,201 FISCAL YEAR 2007 -2008 SCHEDULE 4 - SUMMARY OF PROPERTY TAX REVENUE AND DISTRIBUTION NET TAXABLE VALUE: Total Appraised Value as of July 25, 2007 Less Exemptions: Disabled Veteran Over 65 Homestead Disabled Persons Less: Personal Properly Nominal Value Loss Abatement Value Loss Agricultural Value Loss Freeport Inventory Value Loss Pollution Control /Prorated Absolute Total Reduction to Values Add: Estimated Minimum ARB protested values Incomplete Property NET TAXABLE VALUE ESTIMATED PROPERTY TAX COLLECTIONS: Net Taxable Value Proposed Tax Rate per $100 Valuation Estimated Total Tax Levy at 100% Collection Less Estimated 1 % for U ncollectables Less TIF Transfer Less Debt Service Transfer TOTAL ESTIMATED PROPERTY TAX COLLECTIONS(Operations) 99% TAX RATE DISTRIBUTION SCHEDULE: General Fund - Maintenance & Operations Debt Service Fund TOTAL DISTRIBUTION OF TAX RATE DISTRIBUTION OF ESTIMATED TAX REVENUE: Transfer to Debt Service Fund General Fund - Maintenance & Operations TOTAL ESTIMATED TAX REVENUE $3,927,589,785 (3,698,142) (110,988,739) (305,040,609) (9,630,125) (167,688) 0 (8,408,895) (383,911) (171,193) ($438,489,302) 56,858,693 28,449,888 $3,574,409,064 $3,574,409,064 $0.57 $20,374,132 (203,741) (976,110) ,598,877) $12,595,403 % of Total Tax Rate Tax Rate Distribution 62.4% $0.355937 37.6% $0.214063 100% $0.57000 100% Projected Collection Collection 7,574,987 7,574,987 12, 799,145 12, 595,403 $20,374,132 $20,170,390 FISCAL YEAR 2007 -2008 SCHEDULE 5 - SUMMARY OF REVENUES AND EXPENDITURES Beginning Balance REVENUES General Debt Service Taxes TI #1 and #2 Taxes Sub -Total Ad Valorem Taxes Transfer In From: Drainage Utility Park & Rec. Facilities Dev. Corp Miscellaneous Information Services Fund Equipment Services Fund Building Services Fund Bond Refunding Proceeds Interest Income City of Watauga, C I P Participation TOTAL REVENUES EXPENDITURES GENERAL DEBT SERVICE FUND ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 $1,922,880 $1,725,795 $1,677,942 $2,088,332 $2,245,390 $6,862,025 $6,679,223 $6,750,417 $6,750,417 $6,598,877 550,780 678,548 849,195 849,195 976,110 $7,412,805 $7,357,771 $7,599,612 $7,599,612 $7,574,987 $730,767 $714,451 $707,186 $707,186 $698,766 212,196 206,486 191,919 191,919 189,911 0 0 0 0 0 0 0 0 0 0 102,648 98,353 270,426 270,426 312,893 43,607 43,808 40,703 40,703 50,327 0 8,245,000 0 0 0 50,000 130,108 50,000 92,951 50,000 19,785 19,785 19,785 19,785 19,785 $8,571,808 $16,815,762 $8,879,631 $8,922,582 $8,896,669 Existing Bonds & C.O.'s $8,209,921 $7,468,932 $7,811,729 $7,811,729 $7,176,713 TI #1 and #2 Funding 550,780 678,548 849,195 849,195 976,110 Issuance Costs /Paying Agent Fees 8,192 205,579 104,600 104,600 285,150 Bond Refunding Escrow Payment 0 8,100,166 0 0 0 TOTAL EXPENDITURES $8,768,893 $16,453,225 $8,765,524 $8,765,524 $8,437,973 I NET REVENUE ($197,085) $362,537 $114,107 $157,058 $458,696 ENDING BALANCE $1,725,795 $2,088,332 $1,792,049 $2,245,390 $2,704,086 I FISCAL YEAR 2007 -2008 SCHEDULE 6 - SUMMARY OF REVENUES AND EXPENDITURES PARK AND RECREATION FACILITIES DEVELOPMENT FUND REVENUES Sales Tax Interest Income Youth Assn. Maintenance Fees Tennis Center Revenue Transfer In from Aquatic Park Fund Transfer In from Gas Development Fund Park Impact Fees Appropriation - PY Encumbrances TOTAL REVENUES EXPENDITURES Ogeratincn Park Facilities Development Admin Parks & Public Grounds Tennis Center Operations Sub -Total Other & Reserves Debt Service - Revenue Bonds Debt Service - General Debt Service Indirect Costs Market Adjustment Non-Departmental Reserve for Economic Development Recreation Center Capital Project Reserve for Capital Projects Sub -Total Previous Year Encumbrances TOTAL EXPENDITURES BALANCE ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 $3,855,727 $4,047,737 $3,899,723 $4,167,759 $4,494,244 91,236 131,246 78,375 130,000 179,920 23,805 23,896 29,000 28,000 32,000 282,811 321,373 302,550 293,350 308,500 0 0 0 0 60,000 0 0 0 0 400,000 188,995 170,506 0 125,000 125,000 0 0 0 6,000 0 $4,442,574 $4,694,758 $4,309,648 $4,750,109 $5,599,664 $271,649 $422,057 $452,322 $456,582 $544,458 1,138,096 1,235,698 1,503,978 1,520,851 1,513,045 434,607 479,457 517,731 520,761 542,726 $1,844,352 $2,137,212 $2,474,031 $2,498,194 $2,600,229 $1,143,171 $1,002,823 $1,138,083 $1,138,083 $1,132,213 212,196 206,485 191,919 191,919 189,912 253,659 261,269 274,332 274,332 288,049 0 0 22,116 0 0 12,859 13,450 14,181 14,181 12,744 250,000 193,056 194,986 210,263 224,712 0 0 0 0 500,000 726,337 880,463 0 417,137 651,805 $2,598,222 $2,557,546 $1,835,617 $2,245,915 $2,999,435 6,000 $4,442,574 $4,694,758 $4,309,648 $4,750,109 $5,599,664 $0 $0 $0 $0 $0 August 27, 2007 Honorable Mayor and Members of the City Council Crime Control & Prevention District Board of Directors City of North Richland Hills North Richland Hills, Texas The Crime Control and Prevention District was originally approved by voters in February 1996. The District was initially established for five years. The voters approved a district Board of Directors made up of seven City Council members. A continuation referendum was held on May 5, 2001, re- authorizing the District for 10 years. Continuation of the collection of a half -cent sales tax was approved as the funding mechanism by which the City would provide improved police services to the citizens of North Richland Hills. Coals and Strategies of the District include: 1. Reduce response time to calls for service 2. Reduce occurrence of call stacking 3. Increase officer visibility 4. Enhance crime - fighting tools through new equipment and updated technology 5. Reduce gang - related activity To accomplish these goals the following resources were provided: 1. Addition of sworn and support personnel 2. Upgrading of compensation plan to retain and attract highly qualified police personnel 3. New equipment — vehicles and computers 4. Necessary training and other operating costs When the District was implemented, the District Board and the City Council indicated that future increases in operating expenses for the Police Department and any additional programs or services to that department would be paid by the Crime Control District so that improved police services would not adversely impact the property tax rate. In July 1996, the District began collecting sales tax. At that time, a Transition Reserve was established to lessen the impact in the event the continuation referendum did not pass in 2001. The City continues to fund the Transition Fund as a reserve in the event that the District is not reauthorized in 2011. The estimated accumulated Transition Reserve as of September 30, 2007 will be approximately $1,279,904. ACCOMPLISHMENTS Since July 1996, many positive results have been realized in answer to the goals established by the District. • The Department responded to 48,024 calls for service in FY 2005/2006 as compared to 43,667 calls for service in FY 199511996, a 10% increase. • Total arrests in 2006 were up by 1,403 from 1996, a 52% increase. • Total charges in 2006 were up by 3,358 from 1996, a 42% increase. • Part I Crimes have decreased 14% from 1996 to 2006. • Total traffic violations issued were up by 21% from 1996 to 2006. • During 2006, case clearance rates were 41 % for all crimes combined. • Average response times for Priority 1 calls have decreased by 3 minutes and 59 seconds from 1996 through June 30, 2007. RESOURCES ADDED TO THE POLICE DEPARTMENT TO DATE Because of the Crime Control District, the City has been able to add resources for police services since 1996 in the following areas: 1. $23.2 million to pay for salaries and benefits for 45 new police personnel, including 29 police officers, 2 detectives, 15 support personnel and 1 part time school crossing guard, and an upgraded compensation plan for all sworn police personnel. 2. Funding for a new $1.8 million Public Safety Computer System ($1.1 million funded by C.C.D.). 3. Approximately $300,000 for other capital projects such as renovations of the dispatch area and improvements to the Police Property and Evidence Project. 4. Funding in the amount of $1.6 million for 16 new vehicles for patrol and CID, 12 refurbished vehicles and 14 replacement vehicles. 5. Funding of $135,000 for radios for the fleet and portable radios for officers. 2007/2008 PROPOSED BUDGET The FY 2007/2008 Crime Control and Prevention District budget provides for the continuation of the upgraded compensation plan, supplies, training and equipment maintenance for 45 police personnel including 29 police officers, 2 detectives, 15 support staff and 1 part-time school crossing guard. Service Enhancements Two service enhancements are proposed for FY 200712008. These service enhancements will improve the City's dispatch services and restructure police support services. Improving our Emergency Dispatch Service The public safety communication center located in the Police Department is the nerve center for dispatching police, fire and EMS units. In addition, all 911 calls in the City are answered at this location. Based on our current personnel, it is common to have no more than two people on duty during certain shifts. This creates a situation where the dispatchers must multi -task on important duties. The addition of three dispatchers will allow our current dispatchers to leave their desks during shifts. Currently if only two dispatchers are on duty they must remain in the communication center during their shift, taking short breaks only as absolutely needed. The additional dispatchers would also be trained to answer phone calls and as time allowed could take minor reports over the phone which would reduce the amount of calls sent out to officers in the field. This creates additional time for the officers in the field to conduct proactive crime measures to help with complaints or reduce crime. The three dispatchers are proposed to begin in April and cost $78,427. Crime Control District funds will pay the additional cost of the three dispatchers. Restructuring Police Support Services Currently a sergeant in the Police Department functions as the technical services supervisor. This position supervises two civilian technicians in the property and evidence area as well as supervises a civilian quartermaster position. After much evaluation, it has been determined that it is not necessary to have a sworn police officer be the technical services supervisor. This job could be done by a civilian thereby freeing up a police officer. In addition to taking over the duties as described above, the civilian technical services supervisor could also manage the day to day operations of the red light camera program to assist in resolving issues and oversight of the program, as well as be responsible for the outfitting, or making ready, of all new police vehicles. Having the position be responsible for these areas would free up not only a sergeant, but a lieutenant and officer as well to return to regular duties as sworn officers. The total cost for this position, including salary and benefits, is $63,631. There is an opportunity to fund a portion of this position through the red light camera program since it will be responsible for oversight of the program. It is proposed that 35 %, or $23,631, be funded from the Traffic Safety Fund. The cost of this position would come out of the gross revenues received from the red light cameras, not the portion of revenues we share with the State. The remaining 65% of the Supervisor's salary is proposed to come from the Crime Control District Fund at $40,000. Transition Fund It is recommended that the CCD Transition Fund remain intact over the ten -year life of the District. The goal is to add to the fund so that a balance of approximately $3.4 million or two- thirds of projected operations for one year is available at the end of the ten -year referendum period. In FY 200012001, the City Council established a policy that the Transition Fund not be used to supplement on -going operations, but may be borrowed from time to time to pay for one -time purchases of capital items. Due to recovering sales tax revenues, there is a need to utilize the Transition Reserve Fund to assist with operations in FY 200712008. Because of this, we will deviate from the Transition Fund policy with the understanding the Transition Fund will be replenished as the economy improves. We believe that this reflects prudent use of these funds. Through prudent management of budget expenditures and increased sales tax revenues, the revised FY 2006/2007 CCD budget includes a decrease in the loan of $158,139. The City Council approved a loan from the Transition Fund in the adopted FY 2006/2007 budget of $782,482. The loan from the Transition Fund in the revised FY 2006/2007 budget is $624,343. The planned loan from the Transition Fund for FY 2007/2008 is a $16,178 decrease from the adopted FY 2006/2007 budget. Again, using the Transition Fund to assist with operations is an exception to the policy established by the City Council that will not be continued as the economy improves; however, deviation from this policy is necessary because of the economic recovery. As this is a loan, the Transition Fund will be replenished in the future as funds become available so the long term funding goal is not jeopardized. Lq I I LTJ I LTi l►11 :1•1 Many accomplishments have been achieved with the addition of the half -cent sales tax for the Crime Control and Prevention District. Improvements have been made in handling criminal and other police service increases. Positive impacts have been made in response times, and reductions of burglaries and auto thefts have resulted. A state of the art computer system has been acquired and installed to provide officers the ability to respond, conduct investigations and communications, and retrieve critical information in a more timely and efficient manner. A significant improvement in our compensation plan was provided through this funding that has not only helped retain quality police professionals, but also to attract quality personnel. The establishment of a Transition Fund, projected at $1,279,904 in 2007, will provide a sound financial basis in future planning. A ten -year plan has been established that includes provisions for the salary plan, and funds for vehicle replacement through the end of the referendum in 2011. The target balance of the Transition Fund at the end of the ten year referendum is approximately $3.4 million. We are optimistic that sales tax revenues will continue to rebound in the future, thus allowing us to rebuild the Transition Reserve closer to the level of our goal of two thirds of annual expenditures. We estimate sales tax numbers to be up about 5% in the coming year, and will monitor collections closely adjusting the CCD budget as appropriate. For the coming year, the following ongoing efforts to continue originally stated goals are recommended: • Comprehensive Evaluation of Crime Control District Mission, Accomplishments, Operations and Programs • Planning for Future Needs • Fleet Assessment We appreciate the opportunity that the voters have given us to continue this Crime Control and Prevention District program. You have entrusted us to be good stewards of these funds, and use them in the most cost effective manner to accomplish the Coals of the City Council. We look forward to working with you in the coming years to make this the most successful program possible. Respectfully submitted, Larry J. Cunningham City Manager FISCAL YEAR 2007 -2008 SCHEDULE 7 - SUMMARY OF REVENUES AND EXPENDITURES CRIME CONTROL AND PREVENTION DISTRICT Other & Reserves Indirect Costs $401,941 $300,000 ADOPTED REVISED PROPOSED Police Dept. Salary Increases - General ACTUAL ACTUAL BUDGET BUDGET BUDGET Child Advocacy Center FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 REVENUES 52,665 0 0 0 0 Sales Tax $3,663,173 $3,791,163 $3,746,758 $3,904,897 $4,122,044 Interest Income 60,708 108,717 94,000 94,000 58,402 Other Income 9,725 13,267 0 0 0 Appropriation - PY Encumbrances 0 0 0 27,955 0 Loan from Transition Fund 671,038 658,316 782,482 624,343 766,304 TOTAL REVENUES $4,404,645 $4,571,463 $4,623,240 $4,651,195 $4,946,750 EXPENDITURES Operating Administration $6,739 $7,222 $63,756 $63,756 $68,082 Administrative Services 416,009 539,169 476,462 476,462 522,464 Investigations 269,038 281,778 297,015 297,015 317,941 Uniform Patrol 1,502,465 1,748,630 1,902,203 1,915,925 2,041,033 Technical Services 218,153 212,949 251,949 251,949 266,295 Detention Services 234,520 294,005 318,080 318,080 337,456 Property Evidence 49,328 54,475 69,317 69,317 73,685 Communications 10,712 11,795 11,133 11,133 12,247 Transfer to Equipment Services 100,000 25,000 25,000 25,000 75,000 Sub -Total $2,806,964 $3,175,023 $3,414,915 $3,428,637 $3,714,203 Other & Reserves Indirect Costs $401,941 $300,000 $200,000 $200,000 $200,000 Police Dept. Salary Increases - General 1,092,425 1,037,804 934,024 934,024 803,260 Child Advocacy Center 16,590 16,590 16,590 16,590 11,725 Special Investigation Loan 52,665 0 0 0 0 Other 34,060 42,046 43,989 43,989 45,141 Market Adjustment 0 0 13,722 0 53,994 Sub -Total $1,597,681 $1,396,440 $1,208,325 $1,194,603 $1,114,120 Previous Year Encumbrances $27,955 Sub -Total Expenditures $4,404,645 $4,571,463 $4,623,240 $4,651,195 $4,828,323 PROPOSED NEW PROGRAMS /SERVICES Emergency Dispatch Enhancement (3 Full -Time Staff starting in April) $78,427 Restructuring Police Support Services (1 Full -Time Supervisor: 65% CCD, 35% TSF) 40,000 Sub -Total Proposed New Programs /Services $118,427 TOTAL EXPENDITURES $4,404,645 $4,571,463 $4,623,240 $4,651,195 $4,946,750 BALANCE $0 $0 $0 $0 $0 FISCAL YEAR 2007 -2008 SCHEDULE 8 - SUMMARY OF REVENUES AND EXPENDITURES PROMOTIONAL FUND REVENUES Occupancy Tax Proceeds Interest Income Other Income Appropriation of Fund Balance Appropriation - PY Encumbrances TOTAL REVENUES EXPENDITURES Economic Development Market Adjustment Non-Departmental Sub -Total Previous Year Encumbrance TOTAL EXPENDITURES IBALANCE ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 $191,848 $199,850 $174,900 $230,000 $205,000 4,174 5,891 5,215 5,920 4,460 40 40 50 0 0 27,267 0 36,097 0 23,641 0 0 0 742 0 $223,329 $205,781 $216,262 $236,662 $233,101 $223,146 $183,098 $214,930 $216,613 $232,896 0 0 1,131 0 0 183 196 201 201 205 $223,329 $183,294 $216,262 $216,814 $233,101 742 $223,329 $183,294 $216,262 $217,556 $233,101 $0 $22,487 $0 $19,106 $0 REVENUES Contributions N RH Water Bills Shelter Fund Sub Total Donations Spay /Neuter Keep N RH B - Allied Waste Teen Court Family 4th Sub Total Proceeds Critter Connection Library Book Sale Coffee Bar Proceeds Sub Total Other Interest Income Other Income Sub Total FISCAL YEAR 2007 -2008 SCHEDULE 9 - SUMMARY OF REVENUES AND EXPENDITURES DONATIONS FUND ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 $120,314 $92,351 $91,000 $88,700 $86,000 15,251 26,357 45,000 23,500 34,000 $2,528 $2,096 $2,000 $4,000 $5,000 15,000 15,000 15,000 15,000 15,000 0 0 0 0 2,000 0 0 8,500 8,500 0 77,992 37,879 91,750 71,750 76,500 $2,841 $482 $2,000 $1,000 $1,000 2,231 414 2,500 2,800 2,500 1,000 1,982 2,000 2,000 0 0 2,000 2,000 2,000 2,000 $11,582 $21,491 $18,425 $21,650 $16,300 86,841 42,206 60,000 42,300 61,050 Appropriation from Fund Balance Animal Shelter Capital Project $60,000 $0 $0 $0 $0 Previous Year Encumbrances 0 0 0 8,355 0 Sub Total TOTAL REVENUES EXPENDITURES Library - Book Collection Neighborhood Services Critter Connection Keep NRH Beautiful Animal Shelter Capital Project Municipal Court - Teen Court Parks - Special Events and Arts Sub -Total Previous Year Encumbrances TOTAL EXPENDITURES BALANCE $317,588 $202,379 $70,105 $50,116 $246,425 $217,805 $50,000 $53,355 $222,850 $40,000 11,960 4,726 7,867 7,867 7,653 16,632 13,312 15,000 15,000 15,000 60,000 0 0 0 0 0 2,000 2,000 2,000 2,000 77,992 37,879 91,750 71,750 76,500 $236,689 $108,033 $166,617 $149,972 $141,153 $8,355 $236,689 $108,033 $166,617 $158,327 $141,153 $80,899 $94,346 $79,808 $59,478 $81,697 FISCAL YEAR 2007 -2008 SCHEDULE 10 - SUMMARY OF REVENUES AND EXPENDITURES SPECIAL INVESTIGATION FUND ADOPTED REVISED ACTUAL ACTUAL BUDGET BUDGET FY 2004105 FY 2005106 FY 2006107 FY 2006107 :»►1=10 Lei =V Federal Forfeited Funds State Forfeited Funds Municipal Forfeitures MDT Reimbursements AFIS Reimbursements Radio System Reimbursements Interest Income Contribution from CCD Other Income Appropriation - PY Encumbrances Appropriation of Fund Balance TOTAL REVENUES EXPENDITURES Forfeited Funds MDT Maintenance & Equipment Radio Maintenance AFIS Maintenance & Equipment Locally Seized Funds Loan Payment Other 0 to] tt_10=V14 »0111killZI Previous Year Encumbrances BALANCE PROPOSED BUDGET FY 2007108 $19,496 $50,915 $20,000 $15,028 $20,000 49,302 33,512 20,000 47,000 20,000 1,319 2,326 1,000 1,000 1,000 13,884 21,919 0 0 0 12,157 10,641 32,668 32,669 12,128 301,340 280,647 286,000 328,363 325,000 11,418 19,010 16,000 20,805 15,665 52,665 0 0 0 0 4,191 26,793 700 400 0 17,499 0 0 19,913 0 0 $465,772 $445,763 $396,281 $462,764 $393,793 $21,631 $21,526 $32,000 $32,000 $32,000 46,804 42,886 0 0 0 297,305 286,309 325,000 325,000 325,000 9,030 9,030 38,481 38,481 9,421 2,139 0 800 800 800 52,665 0 0 0 0 0 0 0 0 0 $429,574 $359,751 $396,281 $396,281 $367,221 $17,499 $36,198 $86,012 $D $48,984 $26,572 Beginning Balance REVENUES Drainage Fees Interest Income TOTAL REVENUES EXPENDITURES Debt Service Other Expenditures TOTAL EXPENDITURES IBALANCE FISCAL YEAR 2007 -2008 $806,414 SCHEDULE 11 - SUMMARY OF REVENUES AND EXPENDITURES DRAINAGE UTILITY FUND $806,450 4,946 ADOPTED REVISED ACTUAL ACTUAL BUDGET BUDGET FY 2004105 FY 2005106 FY 2006107 FY 2006107 $271,232 $338,929 $431,096 $442,756 PROPOSED BUDGET FY 2007108 $557,315 $795,475 $806,414 $795,000 $806,450 $806,450 4,946 13,491 10,215 15,295 11,515 $800,421 $819,905 $805,215 $821,745 $817,965 $730,767 $714,151 $707,186 $707,186 $698,766 1,957 1,927 0 0 0 $732,724 $716,078 $707,186 $707,186 $698,766 $338,929 $442,756 $529,125 $557,315 $676,514 FISCAL YEAR 2007 -2008 SCHEDULE 12 - SUMMARY OF REVENUES AND EXPENDITURES GAS DEVELOPMENT FUND EXPENDITURES ADOPTED REVISED PROPOSED Transfer to General Fund Operations ACTUAL ACTUAL BUDGET BUDGET BUDGET Transfer to GF - Prevent. Street Maint. FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 Beginning Balance $0 $0 $765,084 $755,433 $616,515 REVENUES 0 0 147,250 0 0 Bonuses: 0 0 0 120,200 0 General Fund Purposes $0 $323,874 $0 $178,782 $0 Park Development Purposes 0 333,689 0 1,461 0 Economic Development Purposes 0 116,040 0 438 0 Golf Course Purposes 0 0 150,000 0 0 Leases: 0 18,170 0 29,399 8,888 General Fund Purposes 0 0 100,000 100,000 100,000 Park Development Purposes 0 0 0 0 100,000 Royalties 0 0 0 0 0 Overrides 0 0 0 0 0 Interest Income 0 0 5,000 30,000 15,000 TOTAL REVENUES $0 $773,603 $255,000 $310,681 $215,000 EXPENDITURES Transfer to General Fund Operations $0 $0 $100,000 $100,000 $0 Transfer to GF - Prevent. Street Maint. 0 0 200,000 200,000 0 Transfer to Golf Course Fund: Equipment Replacement 0 0 147,250 0 0 Club House Renovations 0 0 0 120,200 0 Transfer to Park Development Fund 0 0 0 0 400,000 Transfer to Promotional Fund 0 0 0 0 0 Transfer to Utility Fund 0 0 0 0 0 Transfer to Capital Budget 0 0 0 0 0 Other Expenditures 0 18,170 0 29,399 8,888 Sub -Total Expenditures $0 $18,170 $447,250 $449,599 $408,888 PROPOSED NEW PROGRAMS /SERVICES Fagade Improvement Program 100,000 Preventive Street Maintenance 100 000 Sub -Total Proposed New Programs /Services 200,000 TOTAL EXPENDITURES $0 $18,170 $447,250 $449,599 $608,888 BALANCE $0 $755,433 $572,834 $616,515 $222,627 FISCAL YEAR 2007 -2008 SCHEDULE 13 - SUMMARY OF REVENUES AND EXPENDITURES TRAFFIC SAFETY FUND EXPENDITURES ADOPTED REVISED PROPOSED Traffic Enforcement ACTUAL ACTUAL BUDGET BUDGET BUDGET Traffic Signal Improvements FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 Beginning Balance $0 $0 $0 $0 $42,365 REVENUES $0 $0 $D $0 $285,000 Gross Fine Revenues $0 $0 $0 $105,840 $1,512,000 Less: Allowable Expenditures Contractor Payments $0 $0 $0 ($14,610) ($525,960) Program Administration 0 0 D (6,500) (43,522) Total Allowable Expenditures $0 $0 $0 ($21,110) ($569,482) NET FINE REVENUES $0 $0 $0 $84,730 $942,518 Less: State Share (50 %) $0 $0 $0 ($42,365) ($471,259) NET FINE REVENUES TO CITY $0 $D $0 $42,365 $471,259 ADDITIONAL REVENUES Interest Income $0 $0 $0 $0 $47,126 Other Income 0 0 0 0 0 TOTAL RESOURCES $0 $0 $0 $42,365 $560,750 EXPENDITURES Traffic Enforcement $0 $0 $0 $0 $0 Traffic Signal Improvements 0 0 0 0 285,000 Miscellaneous 0 0 0 0 0 Sub -Total $0 $0 $D $0 $285,000 Sub -Total Expenditures $0 $0 $D $0 $285,000 PROPOSED NEW PROGRAMS /SERVICES Restructuring Police Support Services (1 Full -Time Supervisor: 35% TSF, 65% CCD) 23,631 Traffic Enforcement Enhancement (3 Motorcycles) 75,900 Sub -Total Proposed New Programs /Services 99,531 TOTAL EXPENDITURES $0 $0 $0 $0 $384,531 BALANCE $0 $0 $0 $42,365 $176,219 August 27, 2007 Honorable Mayor and Members of the City Council City of North Richland Hills North Richland Hills, Texas As we prepare for Fiscal Year 200712008, 1 am pleased to report that we will continue to provide quality services to our citizens, customers and community partners. The City of North Richland Hills has achieved many accomplishments over the last year and the services we provide to our citizens continue to set the standard for our neighboring communities. Through this transmittal letter, we are providing much of the same data as in the one for General Governmental Funds. However, we are separating the Proprietary Funds Budgets to hopefully make it clear to the public and Council the differences in fund sources as outlined by the Government Finance Officers Association (GFOA). Therefore this letter and the budgetary information is slightly different from the previous. The Citizens Survey the City conducted with the University of North Texas in 2005 showed our residents value the quality of life the City provides (90% of respondents answered the quality of life was good or excellent) and 92% of respondents would recommend the City to their friends. Money Magazine also ranked us as one of the 100 Best Places to Live in the United States in 2006. We believe that the accolades are great but we are not resting on our laurels. We believe, "the best is yet to come." The University of North Texas will be conducting a follow up survey later this year and we hope to exceed our satisfactory numbers. Money Magazine will again rank large cities in Spring 2008 and we plan on keeping our 62 ranking or bettering it. Providing quality services does not happen by itself. The beliefs and feelings of our citizens, as well as rankings from independent magazines, have culminated from planning, citizen collaboration, strong progressive elected leadership and teamwork from citizen involvement with elected and appointed officials. As we begin looking to the next fiscal year, the budget becomes the plan to assist us in achieving the goals Council has set to continue its mission of a quality and effective government. The City of North Richland Hills strives to be the City of Choice to Live, Work and Play. We are proud of these accomplishments and will continue in the coming fiscal year to provide the highest standard of service and to successfully implement the City Council Goals and Objectives with the available resources. Preparing the proposed budget for Fiscal Year 2007/2008 has been challenging. The local economy continues to improve toward FY 2000/2001 numbers, though funds will continue to be tight. The increased costs of fuel, building materials, utilities and petroleum based products have impacted the proposed budget. The State Legislature has also passed unfunded mandates and introduced the new concept of diverting funds from wholly city initiatives to state reserves. The City will see an increase in court traffic with more "show cause" cases and the State will receive 50% of the net revenue from red light cameras. Our City maintains a strong property tax base, healthy reserves, innovative leadership, strong community partnerships, healthy residential construction and excellent City services. Over the last year we have seen the reoccupation of several vacant big box retail stores. 24 Hour Fitness has opened at Rufe Snow Drive and Loop 820, with Burlington Coat Factory coming in next to it. Ross Dress for Less has opened in the former Albertsons building at North Tarrant Parkway and Davis Boulevard. Let's Talk Call Center now anchors The Hills center on South Boulevard 26. By reoccupying these vacant store fronts these retailers and commercial businesses show that they have confidence in North Richland Hills and the market the City provides. Further, we continue to execute leasing agreements for gas on city owned land which brings another type of industry to our City. The City has also become the headquarters of residential builder History Maker Homes. We have also seen North Hills Hospital complete its major expansion. And, the new library is scheduled to open in early 2008. Not too far behind will be the new recreation center that is moving forward with the design process soon. The next fiscal year will be demanding from a financial perspective and will require some revisions to our long range plans. However, as always, we are optimistic about the future, thanks mostly to the visionary leadership of our Mayor and City Council and their strategic Coals and Objectives. We are confident we can continue to provide award winning programs and excellent services as well as some service enhancements with the resources we have available. To ensure this task is complete the City will enlist the help of our community partners. Our community partners include citizens, businesses, volunteers, neighborhoods, the county, our school districts, neighboring cities as well as our loyal and dedicated employees. There are many opportunities on the horizon. By working together with our community partners, we can take advantage of these opportunities and continue to build a vibrant community. Direction: Goals and Values The North Richland Hills City Council is dedicated to making our community the City of Choice for all citizens to live, work, and play. To accomplish this mission, the Council has adopted a strategic plan for the future and reviews and updates it biannually to respond to changing needs in our community. The strategic plan ii provides a clear vision for the City's future. It is the roadmap that directs our City toward positive change and serves as the policy direction for City management. In November 2006, Council met to review and update its Coals. Two goals were added (Targeted Economic Development and Local and Regional Leadership) and the previous six were updated to reflect North Richland Hills and the City's place in the community. The Council Coals also serve as a guide for developing the City's budget. All plans and projects for the coming year have been evaluated and prioritized based on meeting those goals. This is especially important given our limited resources. The goals are listed below: 1. QUALITY COMMUNITY DEVELOPMENT & REVITALIZATION - strive to promote local economic growth, retain and attract quality businesses and support business development. 2. EFFICIENT EFFECTIVE TRANSPORTATION SYSTEM - strive to provide improved traffic flow and mass transit opportunities for our growing community. 3. SAFETY & SECURITY - strive to be the safest community in Tarrant County and to be prepared for potential natural and man -made disasters. 4. FINANCIAL STABILITY - strive to get the best value for taxpayer dollars and to ensure that we have the financial resources available to invest in community priorities. 5. PRESERVE POSITIVE CITY IMAGE — strive to maintain a positive City image and reputation for being a great community. 6. A SENSE OF COMMUNITY- strive to support programs and events that support its citizens and the community as a whole. This includes maintaining our parks and recreation programs at the current high level, maintaining the cultural arts program, expanding the public art program, completing construction of the 19 -mile hike and bike trail system, and completing and implementing the Parks Master Plan. 7. TARGETED ECONOMIC DEVELOPMENT- strive to maintain and build our vibrant and diverse economic base. 8. LOCAL AND REGIONAL LEADERSHIP- strive to continue to build relationships among other cities and parties with similar interests, sit on committees that set the direction for our region and be proactive to influence the direction of key issues. iii As a supplement to these Coals, the City Council established a set of core organizational values and assigned a specific meaning to each value to inspire City employees to strive toward excellence in the provision of services to our citizens. These core values are: RESPECT • Treating others in a courteous, fair and equitable manner • Valuing differences: points of view, style • Honoring the organization's chain of command • Acknowledging successes and the contribution of others • Following up with feedback SERVICE • Providing services to our community and others • Solving problems • Helping the customer to understand • Sensitive to the needs and feelings of others • Taking action, providing a timely response PRODUCTIVITY • Producing results, completing projects -on time, at or under budget • Planning work activities to achieve goals • Meeting or exceeding job standards and expectations • Look for ways to be more productive while being cost effective IOhd=rN:7hr•1 • Honest communication • Being trustworthy • Following through on commitments • Acting with high professional, moral and ethical standards • Supporting the City of North Richland Hills- goals, values and decisions RESPONSIBILITY • Being knowledgeable and skilled in your job • Holding yourself and others accountable for actions and results • Being loyal and taking ownership in the City goals, values, services and departmental work program • Taking pride in your work • Willingness to take command and initiative when appropriate INNOVATION • Looking for better ways to do your job • Willingness to learn • Being open to new ideas, new approaches 1V • Willingness to take reasonable risks • Thinking creatively and evaluating options TEAMWORK • Participating and involving others in team efforts • Listening and understanding the other's viewpoint • Willingness to cooperate with others and share resources • Fulfilling defined roles and responsibilities • Work and resolve difference and disagreements Our employees have truly embraced the core values established by the Council, and the quality of work performed by our Staff is a testament to that fact. The core values campaign and employee recognition program that was developed in an effort to incorporate the core values into the daily lives of our City employees continues to be a success. The program has been in place for over five years now, and is still getting a positive response. In addition, the Human Resources Department hosted the fifth employee recognition banquet this fiscal year, and recognized Lorie Brown, of the Public Works Department, as the 2006 Employee of the Year for the City of North Richland Hills. Accomplishments: Accountability to Citizens The following is a brief list of the items the City has accomplished in FY 2006/2007 as City Council and Staff work toward the attainment of each City goal. As is evident from this list, the Council goals do in fact guide the work plan of our City as many of the City Council's priorities were achieved or implemented this past fiscal year. Quality Community Development & Revitalization 1. Demolished substandard structures at the former North Hills Mall. 2. Developed the "Let's Grow Davis" streetscape program by inviting property owners, business operators and stake holders to a meeting to discuss plans for implementing the Davis Boulevard Streetscape Improvement Project. 3. Worked with the Gas Advisory Board, City Council and drilling companies to update the Gas Drilling & Production Ordinance to take advantage of new technology in the Barnett Shale and keep high quality community aesthetic and safety standards. 4. Assisted and encouraged the development of 9 residential infill planned developments throughout the City which when fully developed will bring V approximately $60 million in new residential development on previously underutilized properties. 5. Received a Sustainable Development Grant from the North Central Texas Council of Governments to assist in the development of mixed use transit oriented sites around future rail stations. 6. Updated Sign Ordinance regulations through a City Council focus group. Efficient Effective Transportation System 1. Overlaid 16 streets, slurry sealed 36 streets and cracked sealed 32 streets. A total of 84 streets were improved with this program and increased our overall street rating from 79 to 81. 2. Coordinated traffic signal lights along Holiday Lane, Rufe Snow Drive, and Glenview Drive to reduce delay time for motorists. Synchronization allows groups of vehicles to clear a particular corridor without having to stop at multiple intersections. This reduces delays and helps with the air quality. 3. Worked with the City of Keller and the Texas Department of Transportation to begin Phase II of the North Tarrant Parkway street improvements. The project will widen 3.5 miles of roadway between Davis Boulevard and Whitley Road. The project is currently in the design phase. North Tarrant Parkway is a strategic corridor that serves local neighborhoods and commercial development. 4. Participated on the Technical Advisory Committee for the Southwest to Northeast Transportation Study by the Fort Worth Transportation Authority. The study identified the locally preferred alternative for the development of the future Cotton Belt Rail Corridor from southwest Fort Worth to the north end of DFW International Airport. 5. Studied two sites for future rail stations in North Richland Hills, along Iron Horse Boulevard and in Smithfield, and maintained the site acquisition account so the City can purchase the required property when needed. Safety and Security 1. Completed construction and began training at the fire burn training lab. The building is a facsimile of a home with a kitchen, bedroom and living area. Fires are set inside the building to prepare our firefighters for specific structure fires. The training building allows our firefighters to have real life experience in a controlled setting. V1 2. Established CrimeWeb, an internet program designed to allow citizens to receive information on major crimes, Homeland Security, community information, and the Police Department's monthly crime report. 3. Obtained at no cost the computer program known as "ILook" through the U.S. Department of the Treasury. ILook is a forensics program built to allow a detective to conduct forensic analysis on computers that are suspected to have been used in a crime. The computer crimes detective also received special training in the use of this software to help combat computer related crimes in our community. 4. Implemented the Red Light Photo Enforcement Program at various intersections around the City to reduce the number of intersection collisions. 5. Upgraded the Tiburon Records Management System (RMS) and Computer Aided Dispatch (CAD) software programs in March 2007. This system is the primary means for the Police and Fire Department's automated dispatch and records management. Tiburon RMS tracks and updates cases as new data is entered. The CAD upgrade allows the dispatch center to track geographically calls for service and locations of available officers in real time. The CAD aids the dispatchers in responding to incidents quickly. 6. Participated in an area firefighter survivability training session in December. This exercise included a lost firefighter maze in a residential structure that took the firefighter through at least one change of air bottles. The scenario duplicated the efforts necessary to rescue a lost or trapped firefighter. Five agencies from the NEFDA group participated. The training was an excellent way for the agencies to network ideas and to standardize some techniques and equipment. Financial Stability 1. Issued General Obligation bonds and Certificates of Obligation in April 2007. The bonds are to be used to finance street, aquatic park and capital equipment replacements scheduled for FY 200612007. 2. Refinanced $5 million in previously issued bonds at a lower interest rate. This will save the City more than $200,000 in interest expense over 16 years. 3. City's bond ratings were reaffirmed. The current ratings are Moody's (Aa3) and Standard & Poor's (AA -). Ratings analysts praised well- managed Vll finances, long -range planning, and the bond presentation materials as factors in the continued strong credit rating of the City. The City's solid ratings play a key role in the ability of the City to receive favorable interest rates on debt issuances. This rating places us in the top 2% in the State of Texas and the top 10% in the United States. 4. Established a credit card transaction processing agreement with Bank of America to decrease our cost of using the point of sale (PCS) merchant system at the water park and obtaining lower rates for the Utility Department. 5. Updated the bid notification system to make bid specifications accessible to potential bidders on -line as well as improve the electronic access to the purchasing staff. Following this, an additional 50 companies have signed up for automatic notification of upcoming city bids, more potential bidders have the bid requests and bids have been received from new, non - regular bidders. 6. Added new services such as an E -bill option, a delinquency call out program and a welcome brochure for new utility customers in FY 200612007. 7. Went live with the Teleworks online payment system on June 15, 2007 in Municipal Courts. The system is similar to online utility payments, allowing court defendants to pay violations online on the City website and by telephone. The service improves customer service and court efficiency. Preserve Positive City Image 1. Produced the seventh Sounds of Spring Concert Series with 7,400 people enjoying the all Texas music line up at the new site, NRH20. Sounds of Spring had the mission and goal of making the Texas music scene accessible to the public while simultaneously providing a venue for talented and aspiring musicians. The Cultural Arts Division brought in $77,500 in cash and in -kind sponsorships for the 2007 Sounds of Spring Concert Series. 2. Continued the Night of Holiday Magic in December 2006. Departments and volunteers came together to enjoy the season and offer holiday activities to the citizens of North Richland Hills. There was a tree lighting, fireworks, ice sculptures, a petting zoo, marshmallow roast and even a visit from Mr. and Mrs. Claus. About 15,000 guests enjoyed the event. Viii 3. Planned and managed several other special events including Easter in the Park, Hoot and Howl, Companies in Action, Volunteer Appreciation Luncheon, My Part of Town Neighborhood Park Series, Autumn Night Music, TV Off, Family On and others. The Parks and Recreation Department as a whole organized and managed 71 event days in FY 200612007. 4. Created a welcome brochure that provides information on policies related to billing, garbage services, delinquency, water conservation and other items that may prove useful to a new customer in the Utility Customer Service Department. 5. Placed banners at our City entryways and at City Hall to promote North Richland Hills as one of the 100 Best Places to Live in America. We have also continued to promote the 100 Best Places recognition in city newsletters, on the web site and on Citicable. 6. Filmed quarterly NRH UpClose program to promote NRH's economic development accomplishments and update citizens on new commercial ventures coming to the City. A Sense of Community 1. Continued the Keep NRH Beautiful, Neighborhood Looks, LitterNOT and Neighborhood Initiative programs. These programs encourage pride in North Richland Hills and maintain the beauty of our City's neighborhoods. 2. Coordinated volunteers to clean up City streets, tributaries of the Trinity River and other public land as part of the Great American Cleanup and the Trinity Trash Bash. 3. Began "Companies in Action" this year with Health Markets as the title sponsor. Companies in Action, formerly known as Corporate Challenge, provides six different sporting events that are held over a nine month period beginning in February and ending in October. The new format allows company employees, spouses and board members the opportunity to participate and eases the time commitment by spreading out the events over a longer period of time. 4. Completed construction and officially dedicated Dr. Pillow Park, Ace Park, Norich Park and JoAnn Johnson Trail. 5. Hosted the Annual Fire Department Open House with approximately 2,500 visitors this year and approximately 100 volunteers and staff helping at the event. Several new displays were added this year, along with Bell Helicopter providing a Model 47 helicopter for display and the Texas Fire Museum providing five antique fire trucks. ix 6. Put highlights of City Council meetings on CitiCable and the City's website, this further connected citizens to their Council and informed them about happenings in the City. Targeted Economic Development 1. Marketed the City to brokers, developers, retailers and restaurants at the International Council of Shopping Centers Annual Convention. From the convention, the City gained interest in both available buildings and greenfield sites. 2. Worked with brokers of The Venue, Home Town's commercial component, to promote commercial /retail uses at that location. 3. Met with the owner or the owner's representative of every vacant big -box property located in the City to assess redevelopment/re-tenant options. 4. Facilitated Burlington Coat Factory location to a vacant big -box in NRH. 5. Convened regular quarterly meetings of the City's Economic Development Advisory Committee, which began updating the City's Economic Development Plan. 6. Assisted the broker of the Albertsons building in assessing the market and trends to get the property re- tenanted to Ross Dress for Less. 7. Assisted the property broker in facilitating location of Let's Talk.com, a 230 -seat call center, to The Hills, the former Richland Plaza property. 8. Worked with the property broker to bring the headquarters of History Maker Homes to the City. History Maker Homes is a regional home builder and will employ 80 persons at its headquarters in the City. Local and Regional Leadership 1. Received the Keep Texas Beautiful Award: The Environmental Resource Division and the Keep Texas Beautiful Government Award of Excellence. 2. Conducted natural gas drilling familiarization classes for Fire, Police and Public Works Departments within the City, and with the cities of Grand Prairie, Midlothian, Colleyville, and DFW Airport. x 3. Provided research and direction to JPS (John Petersmith Hospital) in identifying an area for a future satellite health clinic for northeast Tarrant County. This research was provided as part of a regional committee set up by Tarrant County Commissioner Cary Fickes. 4. Provided assistance and support to the Boulevard 26 Oversight Committee in establishing the final streetscape design criteria for the ongoing redevelopment of the Boulevard 26 Corridor involving Richland Hills and North Richland Hills. 5. Received the annual "Community Spotlight" Award from the Fort Worth Builders Association for North Richland Hills' innovative residential infill planned development ordinance and ongoing development of underutilized properties. 6. City Council members participated in several regional groups and the Mayor served in leadership roles as chair of the North Texas Council of Governments, the Regional Transportation Council and the Tarrant County Regional Transportation Council. These are just a few of the City's accomplishments over the last year. The City is fortunate to have a City Council with the vision to plan for the future, good community partners and a staff that is dedicated to meet and exceed the expectations of Council. Fund Overviews Before moving into the details of the revised and proposed budgets, we feel it is important to give an overview of the types of funds used in planning and accounting for our annual program of work so that both our City Council members and our citizens are fully informed. This should create a clearer understanding of the budget as it is reviewed. General Fund The General Fund is the principal fund of the City and is used to account for resources associated with core government services, or traditional municipal services such as public safety, streets, library services, code compliance and building inspections. This is also the largest fund in the budget. Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted to expenditures for specified purposes. Special Revenue Funds include: the Crime Control and Prevention District Fund, the Promotional Fund, the Donations Fund, the Special Investigation Fund, the Drainage Utility Fund, the Parks & Recreation Facility Development Fund, the Gas Development Fund and the new Traffic Safety Fund. Enterprise Funds Enterprise Funds account for services that are funded directly through user fees. They are financed and operated similar to a private business, in that the costs of providing goods and services are self- supporting. These funds include the Utility Fund, the Golf Course Fund and the Aquatic Park Fund. Internal Service Funds Internal Service Funds are used to account for the financing of materials and services provided by one department to other departments on a cost - reimbursement basis. Internal Service Funds are designed to clearly delineate the costs associated with these services. These funds include the Building Services Fund, the Equipment Services Fund, the Information Services Fund and the Self Insurance Fund. goii1111 As part of the regular annual budget process, some areas of the FY 2006/2007 budget require revision from the originally adopted level. Projecting revenues can be difficult at times when the economy is slowly returning and construction projects' times are not always known. Expenditures can sometimes be difficult to project because they are being projected up to eighteen months before they occur. This can mean adjustments are needed to update to the most current estimates to complete the fiscal year. One of the changes you will notice between the adopted budget and revised budget is the Appropriation of Fund Balance for prior year encumbrances in the revised revenues. This is generally for purchases or contracts that were obligated in FY 200512006, as approved by Council, but actually purchased, paid for and completed in FY 200612007. The most noteworthy budget revisions in the Proprietary Budgets are as follows: xii Utility Fund revenues for water sales have been revised downward by $814,462, or 6.0 %. The majority of this reduction is due to the decrease in water usage caused by the unseasonable rainy late spring and early summer of 2007. Sewer sales and charges have actually increased by $35,220. Sewer rates are set on winter water usage and therefore do not fluctuate significantly with the weather. The sewer revenue increase is primarily due to additional accounts. FY 2005/2006 was an unseasonably dry year and water sales were much higher than typical. The higher water sales in FY 2005/2006 created a larger than anticipated ending balance, this balance in turn generated higher than expected investment income. Due to this, revised investment income for the Utility Fund is $853,540, or $628,540 more than adopted. With the slight increase in sewer sales revenue and the increased investment income, it was not necessary to use all of the sewer rate stabilization reserve included in the adopted budget. The revised amount is $211,329, or $242,355 less than adopted. The water rate stabilization reserve was required and remained at the adopted amount of $275,000. In addition, appropriations of $36,960 in fund balance are for prior year encumbrances. Utility Fund operating expenses were decreased overall by $335,215. A majority of the decrease is due to a reduction in the purchase of treated water from the City of Fort Worth and the Trinity River Authority. The decreases in revenue were offset by the decreases in treated water expenditures and increases in investment income which resulted in a modest decrease to reserve of capital projects of $46,144. The original estimate for attendance for FY 2006/2007 was 257,342. The latest estimates anticipate reaching this figure or slightly exceeding it even with the recent wet, rainy weather. Attendance has been adversely affected by the rain in May and June but the uniform public school start date will add an additional two weeks to the Park season. Estimated year end revenues for the Park are $3,984,531 including appropriations for previous year encumbrances. This is a 1.3 %, or $54,135, increase over the adopted revenues. Revised operating expenses have been decreased by $60,707. The increase in revenues coupled with the decrease in operating expenses has allowed for additional park expansion reserves and insurance reserves over the adopted FY 2006/2007 budget. Net revenues at the Golf Course are projected to decrease by $330,660 from adopted to revised. The majority of the decrease is in food and beverage sales, green fees and merchandise. Rounds of golf are projected to decrease from xiii 55,000 rounds to 50,865 rounds due to the rainy weather in May and June; months that are typically the busiest months of play at the Golf Course. Revised operating expenses are projected to decrease approximately $167,000. The difference between the decreased revenues and decreased expenses makes it necessary to delay the annual Water Fund loan payment of $50,242, eliminate the contribution to the reserve for equipment in the amount of $113,685 and drawdown the Golf Course Fund balance by $87,839. Revised revenues are projected to be $65,482 less than adopted. This is due to an Appropriation of Fund Balance for prior year encumbrances of $20,849, an increase in interest income and a reduction in the planned appropriation of reserves. Revised expenditures are $1,956,177, a decrease of $65,482, including encumbrances from the previous year and a decrease in electricity costs. Although energy costs continue to rise, they did not increase as much as originally projected when the budget was developed last summer. Revised revenues are estimated to be $2,630,367, a 4.3% increase from adopted. The increase is attributable to the various effects the April 13, 2007 hail storm had on the City fleet. During the hail storm, the City fleet experienced almost $300,000 in damages. The City's property insurance covered $248,146 and the City's Self Insurance Fund reserves were used for the difference, the City's deductible. With some vehicles totaled, auction proceeds are projected to be $13,000 over adopted. In a separate effort, $25,000 in grant revenues was awarded to the City for the purchase of low- emission vehicles. Revised expenditures are $107,778 higher than adopted due to the previously mentioned hail damage and the needed repairs. However, part of this increase was offset by decreases in vehicle purchases due to the replacement of existing fleet with smaller but functional vehicles and lower than anticipated fuel cost and usage. Total revised revenue is projected to be $2,806,043, an increase of $472,679. This increase is due to an Appropriation of Fund Balance for prior year encumbrances. The prior year encumbrances were for computer equipment and software used in our computer systems. Revised operating expenditures increased $9,203 due to the distribution of the January market adjustment which was included in the Reserves and Other category in the adopted budget. Also included in the revised budget is an increase to Reserves for Systems X1V Improvements. This increase was made possible because of the additional contribution made by the General Fund in the revised budget. These reserves will be utilized for proposed service enhancements to be discussed in FY 2007/2008 Proposed Budget section as well as in the "The Best is Yet to Come: Planning For The Future and Addressing Priorities" section of this letter. Total revenues for this Fund are projected to be $7,717,197, an increase of approximately $120,000 due to increases in interest income and expenditure reimbursement as well as the addition of a $50,000 appropriation for the transfer to Equipment Services to pay for the insurance deductible on the vehicles damaged during the April storm. Also included is an appropriation for previous year encumbrances for $10,000. Total expenditures of $7,717,197 include health /medical costs of $6 million, workers compensation of $476,139, $435,537 for all other insurance, $456,136 in personnel expenses, $214,708 in reserves for future insurance claims, $50,000 for the insurance deductible on the damaged fleet and $10,000 for prior year encumbrances. 2007/2008 PROPOSED BUDGET All signs indicate that Fiscal Year 2007/2008 will be very successful, both from accomplishing numerous goals of the City Council and from a financial point of view. Our team of dedicated employees will continue to focus in the coming year on building a vibrant community, providing quality services to our customers and implementing the City Council Goals of: • Quality Community Development and Revitalization • Efficient Effective Transportation System • Safety and Security • Financial Stability • Preserve Positive City Image • A Sense of Community • Targeted Economic Development • Local and Regional Leadership We expect to see residential growth continue at a steady pace in FY 2007/2008 and anticipate growth to our economic base with the revitalization of many of our older big box stores and the new commercial development of Tower Plaza at Davis Boulevard and Shady Grove Road, Smithfield Summit at Davis Boulevard and Mid - Cities Boulevard and the North Hills Hospital expansion. We will move xv forward with the redevelopment of Boulevard 26 and the former North Hills Mall site. We will continue to have natural gas development on public and private lands. All of this will have a positive impact on our future revenues and will help deter the increasing costs that are beyond our control. As our City's population increases, we face an understandable increase in the quantity of goods and services needed to serve that population. Like any business, the City of North Richland Hills is also experiencing increases in the cost of electricity, gasoline, building materials and other services. Many of the cost increases the City is experiencing are greater than general inflation or the consumer price index. We are making efforts to find ways to minimize the impact of these types of increases. Price per unit of gasoline is projected to increase in FY 200712008. In FY 2006/2007 the per gallon cost of gasoline was budgeted at $2.50. In FY 2007/2008 we are expecting the per gallon cost of gasoline to be $2.75, a 10% increase. However we expect to use less gasoline because the City is purchasing more fuel efficient vehicles. We expect to only use 195,000 gallons of gasoline next fiscal year compared to 207,000 gallons this year. This will be a significant measure to help us keep our costs down even with actual price increases for fuel. The City will also see an increase in prices for petroleum based projects. Tires are expected to increase from $66.66 to $71.99 a piece, an 8% increase. Engine oil will increase from $1.72 to $1.85 per quart, an 8% increase. Asphalt, needed for the Preventive Street Maintenance Program, will increase 28% from $32 per ton to $41 per ton. Electricity costs will increase due to increased per unit price and the addition of the new library. We anticipate an increase in overall electricity costs of $37,000 in FY 2007/2008 due to the added Library space. The cost of electricity per Kilowatt/hour averaged $0.12 in FY 200612007. The average in FY 2007/2008 should be $0.152 per Kilowatt/hour, a 27% increase. Other construction materials are estimated to increase as well. Copper tubing will see an increase of 51% from $10.30 per linear foot to $15.60 per linear foot. Cement is projected to increase 23 %, from $59.00 per cubic yard in FY 2006/2007 to $72.50 per cubic yard in FY 200712008. The City expects to see an increase of 9% in credit card fees in FY 2007/2008 due to increased usage. More residents are using the credit card option to pay for various city services and while the fees normally are below 1%, some cards have fees of over 4 %. The City is working to lower those high fees and the estimated cost may be reduced in the revised FY 2007/2008 budget. XV1 Another expenditure that exceeds the inflation factor that has a major impact on the City's operations is health and medical costs. These continue to increase between 8% and 10% per year, and we are projecting a 10% increase in FY 200712008, which is double the CPI. We are a labor- intensive, service orientated business, and because of this it is a major cost increase to cover our employees with health insurance. To help defer the increasing costs of doing business, all of our departments continue to look for ways to reduce costs in other areas and to improve levels of efficiency. This is an important step in our fiscal planning and will help us to maintain our financial stability and retain a 57¢ tax rate. As we plan our services and programs for FY 200712008, it is important to highlight some of our continuing initiatives, to summarize the revenues and expenditures for each fund and to explain new programs and initiatives that are being proposed. Highlights and Analysis In an effort to achieve the goals set by the City Council and address the issues we expect to shape the FY 2007/2008 budget year, a number of new initiatives are planned for FY 2007/2008 as well as the continuation of others from previous years. Highlights of the coming year are: 1. Equipment & Building Services Plan — These plans as originally presented to City Council in FY 1997/1998 continue to be updated to insure Council and citizens recognize needs for future equipment replacements, facility renovations and major maintenance. The plans allow the City to continue its programs of facility infrastructure maintenance and equipment replacements with no property tax increase, while monitoring the investment the City has in these valuable assets. Suggested changes are being made for Fiscal Year 2007/2008 as far as specific equipment and building upgrades, but the basic plan remains valid and is recommended to be continued as a tool to keep our equipment and buildings timely and reasonably maintained, replaced and/or improved. The 2008 plans are presented in the FY 2007/2008 Capital Improvement Projects (CI P) Budget. 2. Aquatic Park Infrastructure — The 12th consecutive year of infrastructure funding will see $325,000 added to reserves for major infrastructure replacement and /or major repair. Total accumulated reserves at the end of FY 2007/2008 are estimated to be approximately $3.4 million. 3. Service Enhancements for FY 2007/2008 — Several service enhancements to address Coals established by the City Council are proposed in the FY 2007/2008 proposed budget. Management and Staff identified items that met xvii high priority needs but were funded by extraordinary and one -time revenues. These enhancements are discussed in detail later in the letter, starting on page xxxiii. The following is a summary of these recommended enhancements proposed for the Proprietary Budgets: Waterwise Public Education Program Vibrating Compactor with Remote Opening our New Library Fuel System Upgrade Technology Productivity Enhancements 4. Continuing to Restore Medical Claim Reserves — In July 2003, the City Council held a special work session to discuss significant challenges facing the City's self- insured health plan. Years of double -digit medical cost increases and several large catastrophic medical claims had put a strain on the City's Self Insurance Fund. At that time, a six year strategy of cost sharing and cost reduction was approved to address the City's health insurance costs. It was important for employees and the City to partner together to ensure the long -term success of the cost saving initiatives. This includes rebuilding medical claim reserves for future emergencies and to keep the plan stable. Substantial progress has been made, and in FY 2007/2008 we will continue to have improvements. While the FY 2007/2008 proposed budget addresses many of the Coals Council has established for the City, the proposed budget strives to further enhance or modify existing services without incurring added costs. Due to limited resources this has been a challenge. Property Values & Tax Analysis Net taxable value growth is up once again. As of the July 2007 tax roll, net taxable values are approximately 4.9% greater than last July and include $94,642,358 in new construction. Excluding new construction, existing property increased in value 2.1% over July 2006. The average home value in North Richland Hills was $138,800 in July 2006. The average home value, based on the July 2007 tax roll, is $144,417. The estimated revenue to be generated from the net taxable value at a 99% collection rate is $20,170,390. The budget includes revenues to the Debt Service Fund in the amount of $6,598,877 to pay for bonds and certificates of obligation, $976,110 for public improvements in the Tax Increment Financing Districts, and $12,595,403 to the General Fund. The budget includes no changes to the current tax rate of 57¢ per $100 valuation. The effective tax rate is still under review by the Director of Finance and Tarrant County. We hope to have the information prior to the Budget Work Session. XV111 Utility Fund Proposed 2007/2008 Water sales and charges generated from the North Richland Hills system for FY 2007/2008 are projected to be $15,232,212, an 11.4% increase from current year adopted. The increase is due in part to the rate increases recommended in the Utility Rate Study approved by Council in 2005 and also due to the increase in usage based on growth of the system. The direct costs of water purchased and sewer treated through the contracts of Fort Worth and the Trinity River Authority are also increasing and are passed through to our customers. Their projected cost increases are reflected in the proposed revenues and expenditures for FY 200712008. Sewer sales and charges are projected to be $7,744,382, an increase of $359,935 or 4.9% over current year adopted. Utility operations are greatly affected by the amount of rainfall that occurs; dry years show large increases in water sales and vice versa. Fiscal years 2004/2005 and 2006/2007 were unseasonably wet years while fiscal year 2005/2006 was near drought conditions. Water sales projections are based on a four year rolling average. By doing this high and low years are balanced against each other. Included in total Utility Fund revenues is an appropriation of $38,600 in fund balance to the Self Insurance Fund to be used toward rebuilding medical claims reserves in that fund per the approved reserve plan. Total Utility Fund revenues are projected to be $24,242,027; $1,569,511 more than the FY 2006/2007 adopted budget. Expenses are estimated at $24,242,027 which is a 6.9% increase over FY 2006/2007 adopted. Included in the budget is approximately $11,675,288 in water and sewer treatment costs charged by the City of Fort Worth and the Trinity River Authority (TRA). These costs paid to Fort Worth and the TRA represent 48% of the Utility Fund Budget. A payment to the Reserve for Capital Projects is projected to be $521,651. These reserves will fund the various water and sewer system improvements and expansions as identified in the long range utility capital improvement plan. Also included in total expenditures is a transfer of $38,600 to the Self Insurance Fund. The transfer to the Self Insurance Fund is needed to help with reestablishing the medical claims reserve and is being made per the refunding plan approved by Council. Also included in total expenditures are two service enhancements totaling $42,500 discussed in the "The Best is Yet to Come: Planning for the Future and Addressing Priorities" section of this letter. Aquatic Park Fund Proposed 2007/2008 Operating revenues of $4,278,793 at NRH20 are projected at $472,811 more than the FY 2006/2007 adopted budget. It is estimated that there will be 274,160 visitors to the park next year. After including investment income, donations and other non - operating revenues, total revenues for the Park are $4,416,361 for the proposed budget. Much like the Utility Fund, the Aquatic Park Fund must also project revenues for seasons that fluctuate from year to year. xix Projected expenditures of $4,416,361 include $2,823,256 in operating expenditures, $543,179 for debt service, $107,412 in indirect costs, and $24,992 in various other non - operating costs including insurance. The Reserves for Future Infrastructure continue to be budgeted at $375,000. The Reserve for Future Park Expansion is budgeted at $432,522. The Insurance Reserve will be increased by $50,000. Golf Course Fund Proposed 2007/2008 The Golf Course is projecting net revenues of $2,456,467, an increase of about $32,000 over the adopted FY 2006/2007 budget. Included in the revenues is a loan from the General Fund for the replacement of course maintenance equipment in the amount of $162,000. This loan will assist the Golf Course in establishing the needed equipment replacement schedule to keep our mowing and other maintenance equipment in good, reliable operating condition. It will also assist the Golf Course in repayments for this loan will not begin until 2012 at which time the existing Golf Course debt service will decrease by almost $550,000. Expenses including operating expenses, the previously mentioned equipment replacement, debt service, inter -fund loan payments and reserves total $2,456,467. Building Services Fund Proposed 2007/2008 The total proposed budget of $2,105,809 (excluding service enhancements) includes operating expenses of $2,047,602, capital expenses of $267,800, and debt service payments of $50,327. This is an increase of 4.2% from the FY 2006/2007 adopted budget. These costs are to provide maintenance and repairs to all City facilities. The ten -year plan approved by City Council in 1997 has been updated through 2007 and is included in the proposed FY 2007/2008 Capital Projects Budget. To accomplish the various capital improvements, as well as to continue building maintenance and operations, it will be necessary to appropriate $433,752 from fund balance. Internal service funds such as the Building Services Fund are specifically created for just such purposes. Customer departments throughout the City are charged for building costs but increases are generally increased by a percentage. The actual costs of building operations and improvements may fluctuate from year to year and therefore may require the accumulation of reserves to accomplish various projects as is the case in FY 200712008. Also included in the proposed budget are service enhancements related to the opening of the new library that are discussed in detail in the "The Best is Yet to Come: Planning For The Future and Addressing Priorities" section of this letter. xX Equipment Services Fund Proposed 2007/2008 Total proposed expenses of $2,875,586 (excluding service enhancements) include operations and maintenance of $1,638,207, equipment purchases of $400,124 for public safety and $349,700 for all other activities, and debt service payments of $312,893. Included in the public safety equipment purchases are 13 police vehicles. This fund provides for fleet operations and maintenance for all vehicles except the Fire Department's vehicles. The Fire Department has its own mechanic that specializes in emergency vehicles. The Equipment Service Fund also provides for equipment replacement for all City vehicles. This year it will be necessary to finance $285,019 to replace major, long lasting equipment including a $220,019 ambulance and a $65,000 utility camera van for the Public Works Department. These large pieces of equipment are included in the capital projects budget and have ten years or longer of useful life expectancy. The ten -year plan approved by City Council in 1997 has been updated for 2008 with future debt service and is included in the FY 2007/2008 Capital Projects Budget. Each department that has vehicles or equipment pays its pro -rata cost for operations and maintenance of the equipment. Revenues for the proposed budget are $2,887,086 with $2,232,891 being charges for service to customer departments, a planned $335,400 draw down of reserves for new equipment and replacement purchases and other miscellaneous revenues such as investment income, grant proceeds and auction sales. Also included in the proposed budget is a service enhancement in the amount of $11,500 for a mandated upgrade to the fuel system. This enhancement will be discussed in detail in the "The Best is Yet to Come: Planning For The Future and Addressing Priorities" section of this letter. Information Services Fund Proposed 2007/2008 The Information Services Fund pays City wide expenses associated with the operation and maintenance of major computers, microcomputers, data network, Geographical Information System, and telecommunications services. Departments pay their pro -rata share of these costs. The Information Services budget totals $2,679,901 (excluding service enhancements), which is a 14.9% increase from the fiscal year 2006/2007 adopted budget. The increase is due primarily to the scheduled replacement of 150 personal computers throughout the City which is an increase of 50 personal computers over what was replaced in FY 200612007. Also included is the replacement of the voicemail system, citywide transition to the new Microsoft operating system Vista, and other equipment and software upgrades needed to continue operating in an efficient and effective manner. To provide for the replacement of the personal computers and other systems it will be necessary to draw down reserves in the amount of $312,533 per the Information Services ten year plan. Of this amount $141,000 was set aside in FY 2006/2007 revised budget for service enhancements that will increase productivity and enhance citizen and customer access to information. These enhancements will be discussed individually in the "The Best is Yet to Come: Planning For The Future and Addressing Priorities" section of this letter. xx, Self Insurance Fund Proposed 2007/2008 The Self Insurance Fund pays for City wide expenses related to major medical coverage for employees, workers compensation coverage, property and general liability coverage, life insurance and all administrative expenses associated with this program. The Self Insurance Fund budget for FY 2007/2008 meets all expected expenses. The budget for health /medical is $632,971 more than FY 2006/2007 adopted, a 10% increase. Employees will also experience an increase in their premiums which will be discussed later in this letter. The increase in health/medical has been kept to a smaller increase than in recent years as a result of plan changes implemented in January 2005. The Insurance Fund reserves are being rebuilt per the reserve plan adopted by City Council to provide sound healthy reserves and a plan whereby the employees and the City share this cost. This year the costs are $38,600 and $154,400, respectively. Overall the proposed 2007/2008 Self Insurance Fund will see an 8.3% increase in expenditures for all insurance purposes from the FY 2006/2007 adopted budget. The Best is Yet to Come: Planning for the Future & Addressing Priorities The City continues to experience steady population growth and increased demands on services. To continue providing excellent service, several enhancements are needed in some City programs and services. These enhancements have been deemed high priority and are in line with City Council's Coals and Objectives. The proposed enhancements will assist the City and our community partners in building a vibrant community. Since the City experienced some revenue increases over what were originally anticipated, it is suggested that a few service enhancements or one time, non - recurring expanded service enhancements be paid this fiscal year, FY 200612007. This list includes both expanded efforts for FY 2006/2007 and proposed service enhancements for FY 200712008. The following descriptions provide details of the service enhancements for the Proprietary Budgets. Proposed FY 2007/2008 Waterwise Public Education Proaram In the City's Water Conservation and Emergency Water Demand Management/Drought Contigency Plan, we promised to work to provide water conservation public education courses. The Waterwise Public Education Program will teach fifth graders in BISD schools about water conservation techniques. Though we are no longer in drought conditions due to the recent rains we must continue to remember that water is a precious resource and teach xxii children, lifelong users, ways to conserve and protect this resource. Besides instruction, each of the 200 students will receive a water conservation kit that includes a low flow shower head a leak/rain gauge and aerators. The program cost to the City is $7,500 and would be paid for out of the Utility Fund. The Tarrant Regional Water District will match the City's contribution allowing us to reach an additional 200 students. Vibrating Compactor with Remote The Public Works Department currently rents a vibrating compactor for $2,500 per month. This machine applies both pressure and vibration to the ground in order to maximize compaction of the soil. A compactor is needed to meet requirements for densities in excavated trenches for water and sewer lines. On one particular project, trench failures cost the Construction Division approximately $23,000 in material and labor to repair. Purchase of this much needed piece of equipment would pay for itself in just over one year and has the potential to save the City tens of thousands of dollars. The cost of the vibrating compactor is $35,000 and would be funded from the Utility Fund. Opening our New Library Money was transferred from the General Fund to the Building Services Fund for the added maintenance requirements at the new library. The new library will not only increase the amount of square footage to be cleaned, but the time needed to keep the library in its "nevi' condition will also increase. This new building will be a showplace for the City, and our goal is to keep it in showplace condition. To do so will require additional custodial staff. We are proposing to add one full time and one part time custodial position to clean and maintain the new Library. These positions would be hired in January and would cost $43,634 for three quarters of the year. Hiring them in January would allow time for them to be properly trained prior to the opening of the new library. Along with new custodial personnel, there will be increased costs for cleaning supplies, maintenance contracts such as pest control and security as well as other supplies to maintain the facility. The increase for these costs is estimated to be $17,400. In addition to the personnel, supplies and maintenance, opening the new Library will cost the City more for electricity. It is estimated that the facility will increase electric costs by approximately $37,500. Although the new facility will be more energy efficient than the existing facility, there is more space to heat, cool and light and therefore will increase costs for the City. In total it is estimated that opening the new Library will increase costs $98,534 for maintaining the building during FY 200712008. This is the component of the new library opening that will impact the Proprietary Budget, as Building Services is in this funding area. If xxiii approved by Council, the General Fund will provide these dollars to the Building Services Fund for these library maintenance expenses. As per Council direction, we will continue to plan for the library services south of NE Loop 820 though no budgetary funds will be set aside in FY 2007/2008 for it. Fuel System Upgrade The main fueling island located at the Service Center for fueling City vehicles uses a leak detection system that was installed eleven years ago when the fuel island was new. Red Jacket, the existing system, is no longer serviced by the manufacturer and is in need of upgrading in order to meet Texas Commission on Environmental Quality (TCEO) standards. The leak detection system provides daily reports needed to reconcile tank product levels and provides weekly tank leak testing results which are required by TCEO. The current unit needs to be replaced prior to the annual Stage II Vapor Recovery and Line Leak Detection tests required by the State in March 2008. The replacement cost for the leak detection system is $11,500 and would be funded from the Equipment Services Fund. Technology Productivity Enhancements The Information Services Department, with monies transferred from the General Fund, proposes four technology productivity enhancements at a cost of $141,400. Funding is proposed from FY 2006/2007 General Fund budget revenues to pay for these in FY 2007/2008 Information Services budget. Currently, Municipal Court cannot track documents electronically until the documents are finally entered into the Laserfiche system. Along with an upgrade to a SQL server, new Laserfiche Workflow software will allow the Court to track tickets throughout the entire process. With the technology, a transaction /ticket can be tracked before filing the final documents, documents can be routed without search inglaccessing the database and predefined actions can route the appropriate documents to an individual automatically. The software will cost $25,000. The second proposed enhancement is for the Police Department. With Telestaff scheduling software, the Police Department can automate and manage its staffing needs. The software reduces scheduling conflicts and allows management to approve or disapprove staffing requests. The software also allows methods to determine overtime allocation by reviewing individuals overtime usage. Officers will also be able to remotely call in when sick or request time off via email or telephone. The software costs $53,000. XXLV The third proposed enhancement is four Toughbook Laptops for Building Inspections so they can track and monitor permits and inspections in the field. The department has seen increased activity in the past three years. With new laptops, coupled with vehicle mounts and wireless access cards, inspectors can verify permit status, inquire on a permit application, view permit history and identify responsible parties. Inspectors can also update projects from the field. Inspectors will not have to come back to the office to upload onto the HTE system and can stay in the field longer. The laptops with vehicle mounts and wireless access cards cost $36,400. The final proposed service enhancement is to enable Citicable to stream video on the internet with a Streaming Video Service. The company we contract with would host our videos on their servers so there will not be a decrease in performance by our servers as a result of large video files. With the service Citicable could stream City Council and Planning and Zoning Commission meetings live or on demand over the internet. The City could also offer its other programming on the internet. The service will cost $27,000. 100 Best Places in the United States... Best Employees The City of North Richland Hills received national recognition by being named one of the "100 Best Places to Live" in the United States by Money Magazine in 2006. This accomplishment could not have been possible without the hard work, creativity and dedication of our employees. National recognition is nice, but more important is the high marks given by the citizens of North Richland Hills as reported during our last citizen satisfaction survey. To continue to achieve high levels of customer satisfaction the City must be able to recruit and retain quality employees. This year's budget provides our employees a competitive compensation and benefits package which allows the City to retain a wealth of knowledge and experience as well as the ability to locate future employees who have the same passion for quality and customer service as our current team of employees. North Richland Hills has a history of hiring and retaining skilled, educated and experienced people, and providing a quality compensation and benefits program is essential to ensuring that continues. With this in mind we believe it necessary to provide competitive compensation and benefit improvements in FY 200712008. Market Adjustment Plan for FY 2007/2008 On February 24, 2003, Council adopted a Resolution (No. 2003 -01) recognizing the need to compensate employees at a market competitive level in order to retain and attract quality individuals. As part of this Resolution, Council instructed Staff to conduct annual salary surveys to determine market changes. As discussed during last year's budget work session, an analysis of survey data XXV going back to 2003 showed relatively little movement in the market from 2003 to 2005. However, survey data showed significant movement with pay ranges over the last 12 months leading up to that budget work session. To maintain the Council's goal of positioning our salary range midpoints at the market average, City Council approved the funds to provide for two adjustments to the salary ranges in FY 200612007. The first adjustment occurred in January 2007. The Public Safety Pay Plan was adjusted 5.42% and the Professional /Administrative and General Services Pay Plans were adjusted 4.51%. The second adjustment occurred in April 2007. The Public Safety Pay Plan was adjusted 4.83% and the Professional/Administrative and General Services Pay Plans were adjusted 2.55 %. To simplify the budget process, most cities adjust their pay ranges October 1 of each year. To determine additional movement with the market, the Human Resources Department will conduct its annual benchmark survey of our ten comparison cities in October 2007. At this time, the City will know what additional adjustments will be necessary to the pay plans in January 2008 to reach the goal of positioning our salary range midpoints at the market average. As in years past, survey data is coupled with the Employment Cost Index (ECI) to determine the level of adjustment necessary to move our pay range midpoints to the market average. The ECI is a component of the National Compensation Survey compiled by the U.S. Department of Labor every quarter to measure the changes in compensation costs for both public and private sector employers. Incorporating the public sector ECI into the pay plan adjustments gives a more accurate picture of how salaries have changed for all public sector employers while still considering the local competition that exists among cities to attract quality employees. Based on the most recent activity as well as discussions with other cities, we anticipate the market adjustment in January 2008 not to exceed 4% for the Public Safety Pay Plan and 3.5% for the Professional/Ad min istrative and General Services Pay Plans. Due to the differences between the two pay plans, as in the past, the implementation of the 2008 market adjustment for the Public Safety Pay Plan will be different than the Professional/Ad min istrative and General Services Pay Plans. All Public Safety employees will remain on step and their salaries will be adjusted along with the pay ranges. Professional/Ad min istrative and General Services pay ranges will be brought to the market average with no further adjustment to employee salaries. Compression issues that may occur at the bottom of the General Services Pay Plan will be addressed on an individual basis. Only those employees who achieved an acceptable rating on their last performance evaluation are eligible to receive the market adjustment. Employees not receiving the market adjustment will have their salaries frozen and will be eligible for an increase at the time of their next merit review. xXVi Management will continue to evaluate the City's compensation program to determine its competitiveness and fairness. As always, future adjustments will be made in accordance with market movement and financial considerations. Continuation of Merit Pay System In 1996, the City Council adopted a merit pay for performance system that reinforces the value of productivity by rewarding those employees that maintain an acceptable level of performance. Through the Merit Pay System, employees receive an annual performance evaluation, and those employees who achieve an acceptable rating are eligible to receive an increase in pay for good job performance. This system was evaluated by the Compensation and Classification Study that was completed in 2003, and it was recommended to continue the Merit Pay System as a reward for good job performance. After careful consideration and review, the adopted budget provides for the continuation of the Merit Pay System by providing for an increase in pay for all full time employees that receive an acceptable performance evaluation. Those employees that do not receive satisfactory evaluations will not be eligible for a salary increase. We believe it is important to continue the Merit Pay System so that the City continues to provide incentive and acknowledgement to employees who perform their jobs well. North Richland Hills citizens benefit by receiving good customer service and quality City services from motivated employees. Employee Health Insurance for Plan Year 2008 Through June 2007, the City's health plan is performing well with medical expenditures continuing to track under budget. With the positive claims experience over the last several years we are not recommending any plan design modifications such as increases in co -pays, deductibles, or out -of- pocket maximums for Plan Year 2008. Based on our ongoing review of our medical claims experience, next fiscal year we are projecting an overall cost increase of approximately 10 %. Employees will be expected to share in that increase in cost through an increase in monthly medical premiums. To maintain the cost - sharing ratio, we will be increasing employee premiums across the board 8% as well as continuing to follow our strategy for rebuilding reserves by adding an additional $5 to employee monthly health insurance premiums. Effective January 2008, medical premium increases will range from a high of $29 per month to a low of $8 per month depending on the plan and coverage options chosen. With the increase to the City's and the employee's contribution, in 2008 we expect to maintain our funding goal of 20% of revenue contributed through employee medical premiums and 80% of revenue contributed by the City. xxvii Although the City's claims experience has been positive over the last several years, the City will continue to proactively monitor and address health care costs through plan design changes as well as employee wellness education and prevention efforts. The balance between offering a competitive benefit and the costs associated with doing so will continue to be a challenge for both public and private employers. The changes that the City has made over the years to our health plan coupled with our increasing health and wellness education efforts clearly show the benefits of applying creative solutions to a tough problem. Financing For Fiscal Year 2007/2008 The FY 2007/2008 proposed budget is balanced and sound. Overall, the budget will result in the continuation of core functions at the same high level of service, while expanding some services to plan for the future and address priorities. The proposed FY 2007/2008 budget is based on maintaining the current 57¢ property tax rate. If approved by Council, this will be the 15th consecutive year for maintaining the current tax rate. The budget includes a 5% increase to sales tax revenues as well. The proposed budget also includes the 3rd year implementation of the Utility Rate Study. The Study, approved by Council and implemented in December 2005, included a three year phased plan. Below are the rates according to the approved plan. The rates were established to meet the revenue requirements for the system's operation and maintenance costs. Water 2006 2007 2008 Base $9.05 $9.12 $9.30 Volume $2.51 $2.58 $2.69 Sewer 2006 2007 2008 Base $7.22 $7.27 $7.27 Volume $1.17 $1.17 $1.17 In addition, the City anticipates an increase in the Fort Worth/Trinity River Authority water and sewer pass through rates in FY 200712008. Costs associated with payments to Fort Worth and TRA are not controllable by the City, and therefore are calculated separately. The development of natural gas on both private and City property will continue to provide a source of revenue in the coming year. It is anticipated that the City will receive additional bonus money as well as lease revenue. The budget also XXV111 includes monies for the Commercial Property Enhancement Program and the Preventive Street Maintenance Program in accordance with the Policy on Uses of Revenues from Gas Exploration /Production approved by Council in 2006. Staff will continue to seek new outside revenue sources including grants and increased donations for the Library Book Fund and the Animal Adoption Rescue Center Expansion Fund. Summary and Conclusion Department Directors along with the Finance and Budget Departments and City Management Team have put a great deal of time and effort into preparing a balanced budget, maintaining a stable tax rate and implementing the City Council's Goals and Objectives. We are grateful for their dedication and teamwork. We could not have met the challenges and presented a sound budget document without their cooperation and efforts. We also appreciate our many community partners who continue to work hand in hand with the City to help us build a vibrant community. The City Council should also be commended for its leadership and vision. The Council's Goals and Objectives are the driving force that ensures the City will continue to maintain the high quality of life that our residents enjoy. Through careful planning and prioritizing, we have also been able to recommend the following service enhancements in the FY 2007/2008 budget: • Waterwise Public Education Program • Vibrating Compactor with Remote • Opening our New Library • Fuel System Upgrade • Technology Productivity Enhancements To provide the highest level of services to our community, it is imperative for the City to continue to retain quality employees. Therefore in the FY 2007/2008 budget the Merit Pay Program is planned to continue as established by the City Council to provide incentives and acknowledgement to employees who perform their jobs well. We also recommend a market adjustment in FY 2007/2008 to remain competitive and retain the quality employees that North Richland Hills is well known for. The Employee Medical Plan will not change, but premiums to employees will increase in accordance with our six -year strategy for cost sharing and cost reduction. In the coming year we are also projecting increases in the cost of electricity, gasoline, building materials and other products that the City must purchase. We XMX will absorb as must of the cost increases as possible by increasing efficiency and using our building, vehicles and materials wisely. While we anticipate a 5% overall increase in spending in the General Fund for FY 200712008, our careful budgeting and planning will allow us to maintain the current 57¢ tax rate for the 15th year in row. With a City Council committed to excellence, dedicated community partners and employees with a desire to achieve their best and excel, it is little wonder why North Richland Hills continues to prosper and be the City of Choice to Live, Work and Play. Respectfully Submitted, Larry J. Cunningham City Manager FISCAL YEAR 2007 -2008 SCHEDULE 14 - SUMMARY OF REVENUES AND EXPENDITURES REVENUES Water Sales and Charges Sewer Sales and Charges Miscellaneous Sub -Total Revenues Appropriation from Fund Balance Rate Stabilization Reserve for Self Insurance Previous Year Encumbrances TOTAL REVENUES EXPENDITURES Operating Administration Public Works Development Right of Way Maintenance Utility Billing & Collections Budget & Research Accounting Services Purchase of Water /Sewer FTW Purchase of Water /Sewer TRA Building Services Non-Departmental Sub -Total Other & Reserves Debt Service Franchise Fees Indirect Costs Payment In Lieu Of Taxes Transfer from Utility C I P Reserve to Information Services Fund Contribution to Equipment Svs. Transfer to Self Insurance Fund Market Adjustment Reserve for Capital Projects Sub -Total Previous Year Encumbrances Sub -Total Expenditures UTILITY FUND ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 $13,601,134 $16,259,607 $13,677,785 $12,863,232 $15,232,212 7,313,386 7,491,334 7,384,447 7,419,667 7,744,382 704,312 868,566 845,000 11470,540 1,226,833 $21,618,832 $24,619,507 $21,907,232 $21,753,439 $24,203,427 $0 $0 $728,684 $486,329 $0 0 0 36,600 36,600 38,600 36,960 $21,618,832 $24,619,507 $22,672,516 $22,313,328 $24,242,027 $223,961 $244,586 $251,276 $251,276 $266,648 3,471,959 4,012,901 4,262,316 4,285,163 4,392,168 525,520 579,643 674,588 679,585 750,567 124,239 60,785 170,000 170,000 195,800 1,209,881 1,270,130 1,229,970 1,264,408 1,324,121 155,381 170,217 177,888 179,085 185,936 124,720 126,431 133,337 134,643 127,316 3,972,403 3,589,241 3,636,687 3,636,687 4,617,571 5,232,835 6,079,673 6,795,096 6,395,096 7,057,717 889,686 934,170 980,879 980,879 1,078,968 154,621 251,049 374,873 374,873 370,406 $16,085,206 $17,318,826 $18,686,910 $18,351,695 $20,367,218 $474,749 $616,204 $464,438 $464,438 $456,665 615,871 705,119 621,983 600,297 681,095 1,283,271 1,347,435 1,414,807 1,414,807 1,485,548 329,727 344,779 360,000 423,750 423,750 175,000 175,000 175,000 175,000 175,000 50,000 50,000 50,000 50,000 50,000 115,750 34,600 36,600 36,600 38,600 0 0 56,853 0 0 2,489,258 4,027,544 805,925 759,781 521,651 $5,533,626 $7,300,681 $3,985,606 $3,924,673 $3,832,309 $21,618,832 $24,619,507 PROPOSED NEW PROGRAMS /SERVICES Waterwise Public Education Program Vibrating Compactor with Remote 36,960 $22,672,516 $22,313,328 $24,199,527 $7,500 35,000 Sub -Total Proposed New Programs /Services TOTAL EXPENDITURES $21,618,832 $24,619,507 $22,672,516 $22,313,328 $24,242,027 BALANCE $0 $0 $0 $0 $0 FISCAL YEAR 2007 -2008 SCHEDULE 15 - SUMMARY OF REVENUES AND EXPENDITURES UTILITY FUND -WATER OPERATIONS ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 REVENUES Water Sales and Charges Water Sales $13,427,722 $16,046,613 $13,499,692 $12,687,339 $15,055,912 Water Taps 70,590 75,520 67,593 67,593 68,000 Water Inspection Fees 16,644 50,752 24,000 24,000 24,000 Service Charges 76,492 72,895 75,600 72,900 72,900 Water Wells 9,686 13,827 10,900 11,400 11,400 Sub -Total $13,601,134 $16,259,607 $13,677,785 $12,863,232 $15,232,212 Miscellaneous Interest Income $78,810 $174,112 $135,000 $512,124 $385,683 Late Charges 284,215 281,588 306,000 282,000 282,000 Joint Use Reimbursement- Watauga 34,470 43,966 54,000 91,000 44,000 Subdivision Meter Revenue 64,800 65,100 56,000 56,000 56,000 Sub -Total Appropriation from Fund Balance Rate Stabilization Reserve for Self Insurance Fund Previous Year Encumbrances Sub -Total TOTAL REVENUES EXPENDITURES Operating Administration Water Operations Purchase of Water FTW Purchase of Water TRA Development Right of Way Maintenance Sub -Total Finance /Utility Collections Meter Reading Utility Billing /Customer Service Utility Collection Services Accounting Services Budget & Research Sub -Total $462,295 $564,766 $551,000 $941,124 $767,683 $0 $0 $275,000 $275,000 $0 0 0 21,960 21,960 23,160 24,607 $0 $0 $296,960 $321,567 $23,160 $14,063,429 $16,824,373 $14,525,745 $14,125,923 $16,023,055 $134,377 $146,752 $150,766 $150,766 $159,989 2,621,911 3,064,102 3,272,006 3,288,440 3,374,995 2,865,464 2,704,284 2,607,960 2,607,960 3,487,408 3,155,508 3,645,061 3,856,671 3,456,671 3,972,371 315,312 347,786 404,753 407,751 450,340 74,543 36,471 102,000 102,000 117,480 $9,167,115 $9,944,456 $10,394,156 $10,013,588 $11,562,583 $205,945 $210,721 $214,957 $216,386 $223,166 396,087 422,273 389,203 407,500 427,663 123,896 129,085 133,822 134,758 143,644 74,832 75,859 80,002 80,786 76,390 93,229 102,130 106,733 107,451 111,562 $893,989 $940,068 $924,717 $946,881 $982,425 FISCAL YEAR 2007 -2008 SCHEDULE 15 - SUMMARY OF REVENUES AND EXPENDITURES Building Services Non-Departmental Sub -Total Other & Reserves Debt Service Franchise Fees Indirect Costs Payment In Lieu Of Taxes Transfer from Utility C I P Reserve to Information Services Fund Contribution to Building /Equip. Svs Transfer to Self Insurance Fund Market Adjustment Reserve for Capital Projects Sub -Total Previous Year Encumbrances Sub -Total Expenditures UTILITY FUND - WATER OPERATIONS ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 $533,812 $560,502 $588,527 $588,527 $647,381 $92,773 $150,629 $224,924 $224,924 $222,244 $10,687,689 $11,595,655 $12,132,324 $11,773,920 $13,414,633 $284,849 $369,722 $278,663 $278,663 $273,999 397,653 484,738 404,639 380,620 451,677 782,796 821,936 863,033 863,033 906,185 197,836 206,867 216,000 254,250 254,250 105,000 105,000 105,000 105,000 105,000 30,000 30,000 30,000 30,000 30,000 69,450 20,760 21,960 21,960 23,160 0 0 34,112 0 0 1,508,156 3,189,695 440,014 393,870 521,651 $3,375,740 $5,228,718 $2,393,421 $2,327,396 $2,565,922 $24,607 $14,063,429 $16,824,373 $14,525,745 $14,125,923 $15,980,555 PROPOSED NEW PROGRAMS /SERVICES Waterwise Public Education Program $7,500 Vibrating Compactor with Remote 35,000 Sub -Total Proposed New Programs /Services TOTAL EXPENDITURES $14,063,429 $16,824,373 $14,525,745 $14,125,923 $16,023,055 BALANCE $0 $0 $0 $D $0 FISCAL YEAR 2007 -2008 SCHEDULE 16 - SUMMARY OF REVENUES AND EXPENDITURES UTILITY FUND -SEWER OPERATIONS ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 REVENUES Sewer Sales and Charges Sewer Sales $7,219,721 $7,371,282 $7,287,149 $7,322,567 $7,647,282 Sewer Taps 24,400 23,937 22,398 24,000 24,000 Sewer Inspection Fees 14,217 44,039 23,000 23,000 23,000 Service Charges 50,995 48,597 50,400 48,600 48,600 Miscellaneous 4,053 31479 11500 1,500 1,500 Sub -Total $7,313,386 $7,491,334 $7,384,447 $7,419,667 $7,744,382 Miscellaneous Interest Income $52,540 $116,074 $90,000 $341,416 $271,150 Late Charges 189,477 187,726 204,000 188,000 188,000 Sub -Total $242,017 $303,800 $294,000 $529,416 $459,150 Annrooriation from Fund Balance Rate Stabilization $0 $0 $453,684 $211,329 $0 Reserve for Self Insurance Fund 0 0 14,640 14,640 15,440 Previous Year Encumbrances 1,106,939 884,957 1,028,727 12,353 1,130,163 Sub -Total $0 $0 $468,324 $238,322 $15,440 TOTAL REVENUES $7,555,403 $7,795,134 $8,146,771 $8,187,405 $8,218,972 EXPENDITURES Operating Administration $89,584 $97,834 $100,510 $100,510 $106,659 Sewer Operations 850,048 948,799 990,310 996,723 1,017,173 Sewer Treatment FTW 1,106,939 884,957 1,028,727 1,028,727 1,130,163 Sewer Treatment TRA 2,077,327 2,434,612 2,938,425 2,938,425 3,085,346 Development 210,208 231,857 269,835 271,834 300,227 Right of Way Maintenance 49,696 24,314 68,000 68,000 78,320 Sub -Total $4,383,802 $4,622,373 $5,395,807 $5,404,219 $5,717,888 Finance /Utility Collections Meter Reading $137,297 $140,480 $143,304 $144,258 $148,777 Utility Billing /Customer Service 264,058 281,515 259,469 271,668 285,108 Utility Collection Services 82,598 86,056 89,215 89,838 95,763 Accounting Services 49,888 50,572 53,335 53,857 50,926 Budget & Research 62,152 68,087 71,155 71,634 74,374 Sub -Total $595,993 $626,710 $616,478 $631,255 $654,948 FISCAL YEAR 2007 -2008 SCHEDULE 16 - SUMMARY OF REVENUES AND EXPENDITURES UTILITY FUND - SEWER OPERATIONS ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 Building Services $355,874 $373,668 $392,352 $392,352 $431,587 Non - Departmental $61,848 $100,420 $149,949 $149,949 $148,162 Sub -Total $5,397,517 $5,723,171 $6,554,586 $6,577,775 $6,952,585 Other & Reserves Debt Service $189,900 $246,482 $185,775 $185,775 $182,666 Franchise Fees 218,218 220,381 217,344 219,677 229,418 Indirect Costs 500,475 525,499 551,774 551,774 579,363 Payment In Lieu Of Taxes 131,891 137,912 144,000 169,500 169,500 Transfer from Utility C I P Reserve to 70,000 70,000 70,000 70,000 70,000 Information Services Fund Contribution to Building /Equip. Svs 20,000 20,000 20,000 20,000 20,000 Transfer to Self Insurance Fund 46,300 13,840 14,640 14,640 15,440 Market Adjustment 0 0 22,741 0 0 Reserve for Capital Projects 981,102 837,849 365,911 365,911 0 Sub -Total $2,157,886 $2,071,963 $1,592,185 $1,597,277 $1,266,387 Previous Year Encumbrances $12,353 TOTAL EXPENDITURES $7,555,403 $7,795,134 $8,146,771 $8,187,405 $8,218,972 BALANCE $0 $0 $0 $D $0 I FISCAL YEAR 2007 -2008 SCHEDULE 17 - SUMMARY OF REVENUES AND EXPENDITURES AQUATIC PARK FUND ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 ATTENDANCE 250,682 260,869 257,342 257,342 274,160 I:»►I=10 Lei =V Operating Admissions $1,800,783 $1,958,610 $2,004,658 $2,004,658 $2,265,904 Advanced & Group Sales 905,564 1,155,815 1,003,242 1,003,242 1,192,060 Food and Beverage 489,365 497,646 553,151 553,151 592,980 Library Concessions 0 0 0 0 48,150 Merchandise 103,116 107,527 106,021 106,021 112,611 Lockers 58,061 62,367 59,925 59,925 67,088 Aquatic Classes /Special Events 64,413 91,823 78,985 78,985 0 Sub -Total $3,421,302 $3,873,788 $3,805,982 $3,805,982 $4,278,793 Other $608,149 $656,926 $776,040 $724,872 $749,448 Interest Income $35,921 $120,518 $104,300 $156,975 $118,220 Donations 10,000 20,000 10,000 10,000 10,000 Other 20,765 22,984 10,114 9,348 9,348 Sub -Total $66,686 $163,502 $124,414 $176,323 $137,568 Previous Year Encumbrances $0 $0 $0 $2,226 $0 TOTAL REVENUES $3,487,988 $4,037,290 $3,930,396 $3,984,531 $4,416,361 Operatina General Services & Utilities $608,149 $656,926 $776,040 $724,872 $749,448 Public Grounds /Aquatics /Maint. 777,308 847,169 854,415 860,790 899,526 Business & Office Administration 391,123 368,673 417,130 437,755 446,900 Gift Shop /Concessions 375,148 384,726 430,913 404,150 427,705 Library Concessions 0 0 0 0 38,161 Sales /Special Events/Admissions 220,816 232,379 270,812 261,036 261,516 Sub -Total $2,372,544 $2,489,873 $2,749,310 $2,688,603 $2,823,256 Other & Reserves Debt Service $391,377 $401,900 $498,237 $495,366 $543,179 Infrastructure Reserve Payment 50,000 0 0 0 0 Indirect Costs 94,588 97,426 102,297 102,297 107,412 Market Adjustment 0 0 9,313 0 0 Transfer Out - PARD 0 0 0 0 60,000 Reserve For: Infrastructure & Major Repairs 325,000 325,000 325,000 375,000 375,000 Park Expansion 197,053 718,075 218,179 245,205 432,522 Insurance 50,000 0 0 50,000 50,000 Non - Departmental 7,426 5,016 28,060 28,060 24,992 Sub -Total $1,115,444 $1,547,417 $1,181,086 $1,295,928 $1,593,105 TOTAL EXPENDITURES $3,487,988 $4,037,290 $3,930,396 $3,984,531 $4,416,361 Previous Year Encumbrance $2,226 TOTAL EXPENDITURES $3,487,988 $4,037,290 $3,930,396 $3,984,531 $4,416,361 BALANCE $0 $0 $0 $0 $0 FISCAL YEAR 2007 -2008 SCHEDULE 18 - SUMMARY OF REVENUES AND EXPENDITURES GOLF COURSE FUND ADOPTED REVISED ACTUAL ACTUAL BUDGET BUDGET FY 2004105 FY 2005106 FY 2006107 FY 2006107 ROUNDS REVENUES Green Fees Pro Shop Driving Range Carts Food & Beverage Gas Development Fund Economic Development Sales Tax Revenue General Fund Loan Other Revenue Appropriation of Fund Balance TOTAL REVENUES COST OF GOODS SOLD Pro Shop Food & Beverage TOTAL COGS NET REVENUES EXPENDITURES Operating Pro Shop Driving Range Golf Carts Course Maintenance Food & Beverage General & Administrative Fixed Charges Capital Subtotal Other & Reserves Debt Service Payment to Interdepartmental Loans Water Fund General Fund Equipment Reserve for Equipment/CIP Subtotal TOTAL EXPENDITURES BALANCE PROPOSED BUDGET FY 2007108 50,187 39,604 55,000 50,865 52,000 $1,005,605 $803,089 $1,161,591 $936,759 $1,165,764 315,923 281,780 364,129 303,654 346,632 66,807 57,251 80,009 86,172 80,400 352,949 255,909 435,600 446,286 455,000 441,429 349,518 500,380 462,277 501,950 0 0 147,250 0 0 0 550,000 0 0 0 0 0 0 0 162,000 0 48,877 34,364 34,958 29,661 305,141 0 0 87,839 0 $2,487,854 $2,346,424 $2,723,323 $2,357,945 $2,741,407 $130,466 119,800 $111,258 83,032 $158,139 140,724 $115,352 148,793 $141,960 142,980 $250,266 $194,290 $298,863 $264,145 $284,940 $2,237,588 $2,152,134 $2,424,460 $2,093,800 $2,456,467 $263,670 $248,916 $335,518 $315,059 $377,220 11,007 9,729 12,000 18,970 24,800 181,606 117,305 151,506 174,204 164,643 594,024 562,514 555,309 528,613 598,240 161,575 142,806 163,441 169,756 174,237 205,285 191,983 205,915 190,004 205,352 147,600 95,596 103,920 111,520 111,520 0 52,142 147,250 0 162,000 $1,564,767 $1,420,991 $1,674,859 $1,508,126 $1,818,012 523,851 515,499 545,605 545,605 549,246 50,242 50,242 50,242 0 50,242 56,453 28,227 0 0 0 42,275 41,172 40,069 40,069 38,967 0 96,003 113,685 0 0 $672,821 $731,143 $749,601 $585,674 $638,455 $2,237,588 $2,152,134 $2,424,460 $2,093,800 $2,456,467 $0 $0 $0 $0 $0 FISCAL YEAR 2007 -2008 SCHEDULE 19 - SUMMARY OF REVENUES AND EXPENDITURES BUILDING SERVICES FUND Other ADOPTED REVISED PROPOSED Investment Income ACTUAL ACTUAL BUDGET BUDGET BUDGET Transfer from General Fund FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 REVENUES 0 0 200,000 200,000 0 Charges for Service $39,432 $162,827 $248,675 $254,095 $63,335 General Fund $787,377 $629,196 $460,656 $460,656 $529,754 Utility Fund 889,686 934,170 980,879 980,879 1,078,968 Sub -Total $1,677,063 $1,563,366 $1,441,535 $1,441,535 $1,608,722 Other Investment Income $39,432 $62,827 $48,675 $54,095 $63,335 Transfer from General Fund 0 100,000 0 0 0 Transfer from Capital Project Savings 0 0 200,000 200,000 0 Sub -Total $39,432 $162,827 $248,675 $254,095 $63,335 Appropriation from Fund Balance $151,069 $52,022 $60,952 $50,416 $58,207 Building Services Fund Reserves $0 $14,990 $331,449 $239,698 $433,752 Previous Year Encumbrances 0 0 0 20,849 0 Sub -Total $0 $14,990 $331,449 $260,547 $433,752 TOTAL REVENUES $1,716,495 $1,741,183 $2,021,659 $1,956,177 $2,105,809 EXPENDITURES Operating General Services $130,520 $152,205 $149,968 $148,203 $158,767 Building Services 1,234,906 1,402,206 1,606,739 1,553,558 1,621,035 Transfer to Capital Budget 200,000 134,750 204,000 204,000 267,800 Sub -Total $1,565,426 $1,689,161 $1,960,707 $1,905,761 $2,047,602 Other & Reserves Debt Service $43,607 $43,808 $40,703 $40,703 $50,327 Market Adjustment 0 0 10,536 0 0 Other 8,269 8,214 9,713 9,713 7,880 Reserve for Capital Projects 99,193 0 0 0 0 Sub -Total Other $151,069 $52,022 $60,952 $50,416 $58,207 Previous Year Encumbrance $20,849 Sub -Total Expenditures $1,716,495 $1,741,183 $2,021,659 $1,956,177 $2,105,809 PROPOSED NEW PROGRAMS /SERVICES New Library Building Operations and Maintenance: Maintenance Workers (1 Full -Time, 1 Part -Time both starting January) 43,634 Additional Electricity Usage 37,500 Equipment, Supplies and Services 17,400 Additional Transfer from General Fund (98,534) Sub -Total Proposed New Programs /Services TOTAL EXPENDITURES $1,716,495 $1,741,183 $2,021,659 $1,956,177 $2,105,809 BALANCE $0 $0 $0 $D $0 1 FISCAL YEAR 2007 -2008 SCHEDULE 20 - SUMMARY OF REVENUES AND EXPENDITURES EQUIPMENT SERVICES FUND TOTAL REVENUES $2,059,708 $2,549,836 $2,522,589 $2,630,367 $2,887,086 I=r,4 »0I11k0J *K Ogeratina General Services $146,090 $159,362 ADOPTED REVISED PROPOSED Equipment Services Operations ACTUAL ACTUAL BUDGET BUDGET BUDGET Equipment Purchases FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 REVENUES 0 0 322,980 322,980 400,124 Charaes for Service 0 0 D 0 0 Transfers From: $1,718,048 $1,837,324 $2,223,275 $2,329,711 $2,554,946 General Fund $748,880 $665,003 $711,553 $711,553 $782,708 Utility Fund 875,211 932,976 994,785 994,785 1,094,262 Utility C I P 1 Utility Construction 128,523 129,542 138,610 138,610 152,471 Crime Control & Prevention District 102,462 101,478 81,831 81,831 90,014 Park & Recreation Devlp. Fund 38,987 63,464 106,831 67,906 74,696 Other Funds 23,307 32,915 35,218 35,218 38,740 Sub -Total $1,917,370 $1,925,378 $2,068,828 $2,029,903 $2,232,891 Other $2,059,708 $2,549,836 $2,522,589 $2,630,367 $2,875,586 Investment Income $58,358 $85,565 $78,225 $78,225 $79,800 Sale of City Property 33,980 18,086 30,000 43,000 67,000 Other 0 40,807 0 25,000 63,600 Insurance Settlement 0 0 0 248,146 0 Transfer from General Fund 0 480,000 0 0 0 Transfer from Utility Fund 50,000 0 50,000 50,000 50,000 Transfer from CCD 0 0 25,000 25,000 75,000 Transfer from Self Insurance Fund 0 0 0 50,000 0 Sub -Total $142,338 $624,458 $183,225 $519,371 $335,400 Appropriation from Fund Balance Equipment Services Fund Reserves $0 $0 $270,536 $60,509 $318,795 Previous Year Encumbrances 0 0 0 20,584 0 Sub -Total $0 $0 $270,536 $81,093 $318,795 TOTAL REVENUES $2,059,708 $2,549,836 $2,522,589 $2,630,367 $2,887,086 I=r,4 »0I11k0J *K Ogeratina General Services $146,090 $159,362 $157,492 $155,519 $166,915 Equipment Services Operations 1,237,554 1,394,517 1,583,603 1,712,012 1,638,207 Equipment Purchases 334,404 283,445 159,200 139,200 349,700 Police Vehicles /Equipment 0 0 322,980 322,980 400,124 Fire Vehicles/Equipment 0 0 D 0 0 Sub -Total $1,718,048 $1,837,324 $2,223,275 $2,329,711 $2,554,946 Other & Reserves Debt Service $102,648 $98,355 $275,116 $270,426 $312,893 Market Adjustment 0 0 14,552 0 0 Other 8,143 8,047 9,646 9,646 7,747 Equipment Services Reserve 230,869 606,110 0 0 0 Sub -Total $341,660 $712,512 $299,314 $280,072 $320,640 Previous Year Encumbrances 20,584 Sub -Total Expenditures $2,059,708 $2,549,836 $2,522,589 $2,630,367 $2,875,586 PROPOSED NEW PROGRAMS /SERVICES Fuel System Upgrade (Mandate) $11,500 Sub -Total Proposed New Programs /Services $11,500 TOTAL EXPENDITURES $2,059,708 $2,549,836 $2,522,589 $2,630,367 $2,887,086 BALANCE $0 $0 $0 $0 $0 REVENUES Telecommunications Transfer From: General Fund Utility Fund Other Funds Sub -Total Computers Transfer From: General Fund Utility Fund Crime Control District Other Funds FISCAL YEAR 2007 -2008 SCHEDULE 21 - SUMMARY OF REVENUES AND EXPENDITURES INFORMATION SERVICES FUND ADOPTED REVISED ACTUAL ACTUAL BUDGET BUDGET FY 2004105 FY 2005106 FY 2006107 FY 2006107 PROPOSED BUDGET FY 2007108 $226,071 $237,376 $249,246 $249,246 $274,171 49,057 51,513 53,415 53,415 58,757 53,371 56,041 58,843 58,843 64,727 $328,499 $344,930 $361,504 $361,504 $397,655 $851,539 $757,862 $795,755 $795,755 $875,331 476,560 446,436 468,758 468,758 515,634 98,996 106,494 111,819 111,819 123,001 227,131 219,089 230,043 230,043 253,047 Sub -Total $1,654,226 $1,529,881 $1,606,375 $1,606,375 $1,767,013 Other Revenues Interest Income $30,300 $105,792 $106,485 $106,485 $85,100 Transmitter Lease 123,819 118,058 75,000 75,000 75,000 Other Income 65,115 70,669 9,000 9,000 9,000 Transfer From Utility Fund Reserve 175,000 175,000 175,000 175,000 175,000 Appropriation of Fund Balance 0 0 0 0 312,533 Appropriation - PY Encumbrances 0 0 0 472,679 0 Sub -Total $394,234 $469,519 $365,485 $838,164 $656,633 TOTAL REVENUES $2,376,959 $2,344,330 $2,333,364 $2,806,043 $2,821,301 EXPENDITURES Operating General Services $173,811 $183,136 $193,753 $194,938 $204,620 Major Computer Systems 329,568 324,273 301,615 302,494 302,117 Microcomputer Systems 435,607 341,406 598,723 601,030 821,664 Telecommunications 232,661 231,624 298,875 299,045 361,920 Data Network 306,883 267,797 422,202 424,315 485,548 GIS System 152,624 196,961 248,375 250,116 231,153 Public Safety 180,850 192,174 243,483 244,291 265,722 Sub -Total $1,812,004 $1,737,371 $2,307,026 $2,316,229 $2,672,744 FISCAL YEAR 2007 -2008 SCHEDULE 21 - SUMMARY OF REVENUES AND EXPENDITURES INFORMATION SERVICES FUND ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2004105 FY 2005106 FY 2006107 FY 2006107 FY 2007108 Other & Reserves Market Adjustment 0 0 16,176 0 0 Other 5,553 7,968 10,162 10,162 7,157 Reserve for Systems Improvements 559,402 598,991 0 148,373 0 Sub -Total $564,955 $606,959 $26,338 $158,535 $7,157 Previous Year Encumbrances $472,679 Sub -Total Expenditures $2,376,959 $2,344,330 $2,333,364 $2,947,443 $2,679,901 PROPOSED NEW PROGRAMS /SERVICES Transfer from General Fund Reserves ($141,400) Technology Productivity Enhancements LaserFiche Workflow Software - Court $25,000 Telestaff Scheduling Software - Police $53,000 Toughbook Laptops (4) - Building Inspections $36,400 Streaming Video Service - Communications $27,000 Sub -Total Proposed New Programs /Services ($141,400) $141,400 TOTAL EXPENDITURES $2,376,959 $2,344,330 $2,333,364 $2,806,043 $2,821,301 BALANCE $0 $0 $0 $0 $0 FISCAL YEAR 2007 -2008 SCHEDULE 22 - SUMMARY OF REVENUES AND EXPENDITURES REVENUES Allocations Health /Medical Workers' Compensation General Liability/Unemployment Properly Insurance Sub Total Other Interest Income Transfer from General Fund Transfer from Utility Fund Expenditure Reimbursement Sub Total Appropriation from Fund Balance Transfer to Equipment Services PY Encumbrances Sub Total I TOTAL REVENUES EXPENDITURES Operatina Health/Medical Workers' Compensation Other Insurance Personnel Expenses Life Insurance Premiums Sub Total I Reserves & Other Expenditures Transfer to Equipment Services Market Adjustment Tuition Reimbursement Reserve for Insurance Claims Previous Year Encumbrances Sub Total I TOTAL EXPENDITURES I BALANCE SELF INSURANCE FUND ADOPTED REVISED PROPOSED ACTUAL ACTUAL BUDGET BUDGET BUDGET FY 2004/05 FY 2005106 FY 2006107 FY 2006107 FY 2007108 $5,371,853 $6,121,107 $6,519,926 $6,519,926 $7,152,897 759,099 615,657 507,782 507,782 522,486 189,251 304,146 309,290 294,340 268,537 160,822 81,624 96,409 101,795 95,738 60,411 52,390 55,120 55,120 57,629 $6,481,025 $7,122,534 $7,433,407 $7,423,843 $8,039,658 $37,587 $73,306 $17,385 $71,215 $35,319 372,250 103,800 109,800 109,800 115,800 115,750 34,600 36,600 36,600 38,600 0 287,258 0 15,739 0 60,411 52,390 55,120 55,120 57,629 $525,587 $498,964 $163,785 $233,354 $189,719 $0 $0 $0 $50,000 $0 0 0 0 10,000 0 299,007 299,103 380,417 380,417 372,565 $0 $0 $0 $60,000 $0 60,411 52,390 55,120 55,120 57,629 $7,006,612 $7,621,498 $7,597,192 $7,717,197 $8,229,377 $5,248,255 $5,629,623 $6,040,491 $6,071,491 $6,631,637 464,717 538,504 476,139 476,139 491,398 299,007 299,103 380,417 380,417 372,565 409,933 368,573 452,149 456,136 483,148 60,411 52,390 55,120 55,120 57,629 $6,482,323 $6,888,193 $7,404,316 $7,439,303 $8,036,377 $0 $0 $0 $50,000 $0 0 0 6,690 0 0 0 0 3,186 3,186 0 524,289 733,305 183,000 214,708 193,000 10,000 $524,289 $733,305 $192,876 $277,894 $193,000 $7,006,612 $7,621,498 $7,597,192 $7,717,197 $8,229,377 $0 $0 $0 $0 $0 August 27, 2007 Honorable Mayor and Members of the City Council City of North Richland Hills North Richland Hills, Texas The proposed Capital Projects Budget for Fiscal Year 2007/2008 is submitted herein. This budget identifies major projects and items not included directly in the Annual Operating Budget. The Capital Projects Budget provides for major long -life equipment used in daily operations, funding for the construction and renovation of major facilities and infrastructure, and for multi -year planning studies. Primary sources of funding for these projects are: General Obligation Bonds, Certificates of Obligation, transfers from operating funds, Permanent Street Maintenance capital funds, Park and Recreation half -cent sales tax funds, capital reserve funds, and Federal and State grants. The proposed Capital Projects Budget for 2007/2008 totals $31,643,521. This budget contains new and continuing projects in all areas of City operations. Some projects were selected following City Council budget discussions, others were authorized by voters during past bond elections, and still others were identified by City departmental evaluation and examination of needs. Citizens voted to approve a bond package for City infrastructure /facility improvements valued at approximately $37.2 million in February 2003. Debt issuance for 2007/2008 is $7,990,200, comprising $3,478,000 in general obligation bonds and $4,512,200 in certificates of obligation. General obligation bonds and certificates of obligation will be used for continuing projects and new projects that will begin in 200712008. The general obligation bond funding for continuing and new projects is $3,478,000. These projects include North Tarrant Parkway Street Improvements (Davis to Whitley Road), Douglas Lane Street and Utility Improvements (Hightower Dr. to Starnes Rd.) and Dick Lewis and Holiday Lane Signal, Street and Utility Improvements. Certificates of obligation will be issued for $4,512,200; $942,200 of this issuance will fund part of the costs of the Douglas Lane Street and Utility Improvements and part of the Rufe Snow Street and Utility Improvements (Mid- Cities to Hightower), $500,000 will fund the Iron Horse Golf Course Drainage Improvements and $600,000 will fund projects like Admundson Elevated Tank Rehabilitation and water lines around Holiday Lane. Certificates of obligation in the amount of $185,000 will fund additional restrooms and the design of a new park attraction at NRH20 Aquatic Park. The design of the new recreation center will require $2,000,000 in certificates for 200712008. The remaining amount will replace vehicles and equipment. The City Council has recognized the importance of dedicating funds on an annual basis to enhance the City's efforts for the major repair and preventive maintenance of City streets by authorizing the creation of a Permanent Street Maintenance Fund. With over 213 miles of streets and their aging, it is important to conduct preventive maintenance that will delay more costly street reconstruction and extend the life of the current street system. The proposed 2007/2008 level of funding is $800,000. These funds will allow us to improve the overall condition of approximately 44 streets. The City Council also recognizes the importance of dedicating funds on an annual basis to improve City sidewalks. This project constructs new sidewalks in high pedestrian areas of the City. The proposed 2007/2008 level of funding for this project is $50,000, and the source of funding is previously approved allocations from the General Fund "pay -as- you -go" Capital Projects Reserve. The Reserve for Capital Projects was established by the City Council in 1998/1999 as a "pay -as- you -go" way to address smaller capital improvement needs. It has collected approximately $4.2 million since inception. The Sign Removal Assistance Program also uses these funds. Staff has updated the ten -year Equipment Replacement and Building Services Plan, which City Council approved in 199611997. The Building Services Pay -as- you -go Plan estimates almost $24 million in expenditures over the next ten years for building services operations and capital maintenance to protect our investment in City facilities. The Equipment Services Plan estimates the replacement of $16.8 million in equipment and another $26.5 million for equipment maintenance over the next ten years. Of this $67.3 million total, $59.9 million is pay -as- you -go. The City Council has shown its commitment to this community by continuing to ensure the maintenance and appearance of our City facilities. I want to thank Council for their efforts to communicate to management their priorities for the capital budget. City staff will continue to monitor the condition of all our infrastructure and facilities and make recommendations based on needs and available resources in the Annual Capital Projects Budget. Respectfully submitted, Larry J. Cunningham City Manager Summary of Project Expenditures 2007/2008 Capital Improvement Program Program Street & Sidewalk Projects Drainage Projects Utility Projects Parks & Recreation Projects Aquatic Park Projects Municipal Facility Projects Major Capital Equipment Program Economic Development Projects CIP Personnel Total CIP Project Expenditures Project Proposed Estimated Remaining Total To Date 2007/2008 2008/2009 Amount Expenditures $22,147,500 $11,261,458 $26,664,820 $28,578,900 $88,652,678 300,000 975,000 0 2,740,000 4,015,000 1,205,000 4,193,205 4,891,039 49,679,154 59,968,398 1,338,582 1,759,285 1,941,496 13,789,288 18,828,651 0 610,000 1,865,000 0 2,475,000 7,520,000 6,843,641 11,940,000 11,400,000 37,703,641 336,000 1,663,022 60,000 0 2,059,022 320,000 3,555,000 275,000 0 4,150,000 782,231 782,910 828,306 877,471 3,270,917 $33,949,313 $31,643,521 $48,465,661 $107,064,813 $221,123,307 Summary of Project Funding 2007/2008 Capital Improvement Program UTILITY PROJECTS Certificates of Obligation Funding Proposed Estimated Remaining Total Utility Operations for Capital Projects To Date 2007/2008 2008/2009 Amount Funds STREET & SIDEWALK PROJECTS 281,518 0 0 0 281,518 G.O. Bonds, Future Issuance $0 $3,478,000 $3,551,560 $17,056,000 $24,085,560 G.O. Bonds, Existing Funds 7,957,305 0 0 0 7,957,305 Certificates of Obligation, Future Issuance 0 942,200 52,800 1,715,000 2,710,000 Certificates of Obligation, Existing Funds 3,732,331 0 0 0 3,732,331 Utility Operations for Capital Projects 850,000 298,440 0 1,400,000 2,548,440 Project Savings Reserve 1,644,167 770,500 65,000 174,000 2,653,667 General Fund Reserve 800,000 850,000 0 0 1,650,000 Traffic Safety Fund Reserve 0 170,000 115,000 0 285,000 Pay -as- you -go Reserve for CIP 100,000 104,000 102,000 0 306,000 Grant Funds 23,519,475 1,199,400 12, 062, 800 3,130, 500 39,912,175 Intergovernmental 362,500 0 2,449,700 0 2,812,200 Certificates of Obligation $38,965,778 $7,812,540 $18,398,860 $23,475,500 $88,652,678 DRAINAGE PROJECTS $0 $610,000 $1,865,000 $0 $2,475,000 G.O. Bonds, Future Issuance $0 $0 $0 $2,500,000 $2,500,000 Certificates of Obligation, Future Issuance 0 500,000 0 0 500,000 G.O. Bonds, Existing Funds 240,000 0 0 0 240,000 Project Savings Reserve 345,000 430,000 0 0 775,000 Reserves $585,000 $930,000 $0 $2,500,000 $4,015,000 UTILITY PROJECTS Certificates of Obligation $0 $600,000 $4,053,844 $33,495,824 $38,149,668 Utility Operations for Capital Projects 2,485,170 1,015,000 0 0 3,500,170 Project Savings Reserve 281,518 0 0 0 281,518 Grant Funds 238,482 0 0 0 238,482 Impact Fees 94,335 1,138,700 1,102,195 14,833,330 17,168,560 EPA Surcharge 630,000 0 0 0 630,000 $3,729,505 $2,753,700 $5,156,039 $48,329,154 $59,968,398 PARKS & RECREATION PROJECTS Sales Tax- Park Development $2,396,387 $816,900 $449,135 $12,065,755 $15,728,177 Grant Funds 330,481 459,103 1,158, 082 1,152, 808 3,100,474 $2,726,868 $1,276,003 $1,607,217 $13,218,563 $18,828,651 AQUATIC PARK PROJECTS Expansion Reserve $0 $425,000 $0 $0 $425,000 Infrastructure Reserve 0 0 0 0 0 Certificates of Obligation 0 185,000 1,865,000 0 2,050,000 $0 $610,000 $1,865,000 $0 $2,475,000 MUNICIPAL FACILITY PROJECTS Permanent Building Maintenance Reserve $0 $267,800 $0 $0 $267,800 G.O. Bonds 0 0 1,550,000 0 1,550,000 Certificates of Obligation 10,200,000 2,000,000 18,800,000 0 31,000,000 Reserves 0 765,200 0 0 765,200 Other 725,914 2,794,727 600,000 0 4,120,641 $10,925,914 $5,827,727 $20,950,000 $0 $37,703,641 Summary of Project Funding 2007/2008 Capital Improvement Program Funding Proposed Estimated Remaining Total To Date 2007/2008 2008/2009 Amount Funds MAJOR CAPITAL EQUIPMENT PROGRAM Certificates of Obligation $440,000 $284,266 $0 $0 $724,266 Information Services Reserve 380,850 107,000 0 0 487,850 Other Reserves 0 593,487 0 0 593,487 Other 120,000 73,419 60,000 0 253,419 $940,850 $1,058,172 $60,000 $0 $2,059,022 ECONOMIC DEVELOPMENT CAPITAL PROJECTS General Fund Reserve $3,085,000 $0 $0 $0 $3,085,000 Sales Tax - Economic Development 450,000 200,000 275,000 0 925,000 Gas Fund Reserves 0 100,000 0 0 100,000 General Fund Pay -as- you -go Reserve 20,000 20,000 0 0 40,000 $3,555,000 $320,000 $275,000 $0 $4,150,000 CIP PERSONNEL Utility Funds for Operations $371,825 $369,480 $394,204 $421,414 $1,556,923 Project Savings Reserves 410,406 41 3,430 434,102 456,057 1,713,994 $782,231 $782,910 $828,306 $877,471 $3,270,917 TOTAL CAPITAL IMPROVEMENT PROGRAM G.O. Bonds, Future Issuance $0 $3,478,000 $5,101,560 $19,556,000 28,135,560 G.O. Bonds, Existing Funds 8,197,305 0 0 0 8,197,305 Certificates of Obligation, Future Issuance 0 4,511,466 24,771,644 35,210,824 64,493,934 Certificates of Obligation, Existing Funds 14,372,331 0 0 0 14,372,331 Sales Tax 2,846,387 1,516,900 1,324,135 12, 065, 755 17, 753,177 Utility Operations for Capital Projects 3,706,995 1,682,920 394,204 1,821,414 7,605,533 Reserves 7,066,941 5,016,417 716,102 630,057 13,429,516 Grant Funds 24,088,438 1,699,272 13,220,882 4,283,308 43,291,900 Other 1,932,749 3,466,077 3,611,895 14,833,330 23,844,051 Total Project Funding $62,211,146 $21,371,052 $49,140,422 $88,400,688 $221,123,307 Map Pg. I.O. No. Continuina Proiects Schedule 1 2007/2008 Street & Sidewalk Capital Projects Budget Summary Project Proposed Estimated Remaining To Date 2007/2008 2008/2009 Amount 1 9 Davis Blvd. Lane Expansion [TEA -21] [Tx DOT] $80,000 $480,000 $490,000 $0 2 11 Davis Blvd /Mid- Cities Blvd Intersection TEA -21 150,000 1,030,000 820,000 0 3 13 Forest Glenn Drive /Lost Maple Drive Intersection 115,000 5,000 0 0 4 15 Grand Avenue Street and Utility Improvements 315,000 30,000 0 0 5 17 Jackie Lee Glenview Drive to Dead End CDBG 0 267,528 0 0 6 19 Mark Court Street Improvements 190,000 10,000 0 0 7 21 NRH Park and Ride CMAQ 0 100,000 200,000 0 8 23 North Tarrant Pkwy. Street Imp. Davis to Whitle Rd. 1,150,000 687,500 17,462,500 2,000,000 9 25 Rita Beth Glenview Drive to Dead End CDBG 130,000 170,000 0 0 10 27 Rufe Snow Dr. Street & Utility Imp. 820 to Mid - Cities 10,844,000 2,000,000 0 0 11 29 Rufe Snow Dr. Street & Uti lity Im Karen to 820 360,000 525,950 0 0 12 31 Rufe Snow Dr. Street & Utility Imp. (Mid- Cities to Hightower) 542,500 2,057,500 6,000,000 5,127,000 13 33 Rufe Snow Dr. Bride I 820 ISTEA 6,174,000 1,000,000 0 0 14 35 Rufe Snow Dr. Landscape Phase I (Glenview to Karen) 40,000 10,000 0 0 15 37 Rufe Snow Dr. Streetsca e IH 820 to Mid Cities Blvd 500,000 100,000 0 0 16 39 iSignalization (Holiday/Chapman/Meadow) 110,000 285,000 0 0 17 1 41 ISi gn alization Mid - Cities Blvd Winter Park TEA -21 30,000 124,800 0 0 18 1 43 JSi mmons Drive Mid - Cities to New Librar 715,000 8 0,000 0 0 19 45 Smithfield Road (Bu rsey to Existing Smithfield) 102,000 102,000 102,000 0 Total Continuing Projects Preventive Maintenance Proiects Total $1,050,000 2,000,000 120,000 345,000 267,528 200,000 300,000 21,300,000 300,000 12,844,000 885,950 13,727,000 7,174,000 50,000 600,000 395,000 154,800 795,000 306,000 $21,547,500 $9,065,278 $25,074,500 $7,127,000 $62,814,278 Total Preventive Maintenance Projects New Proiects $0 47 Preventive Sidewalk Maintenance Projects (2 $0 $50,000 600,000 200,000 21 49 Preventive Street Maintenance Projects 2007 0 800,000 0 800,000 22 51 Preventive Street Maintenance Projects (2008) 0 800,000 $600,000 $1,050,000 Total Preventive Maintenance Projects New Proiects $0 $50,000 $0 $0 $50,000 600,000 200,000 21 0 Dou las Lane Hi htower Drive to Starnes Road 0 800,000 0 800,000 22 0 Holiday Lane /Dick Lewis Dr. Si nal, Street & Utility Imp. 0 800,000 $600,000 $1,050,000 $0 $0 $1,650,000 20 53 Charles Street Jerrell St. to Marie St. CDBG $0 $31,880 $127,520 $0 21 55 Dou las Lane Hi htower Drive to Starnes Road 0 342,200 202,800 1,405,000 22 57 Holiday Lane /Dick Lewis Dr. Si nal, Street & Utility Imp. 0 247,600 0 0 - 59 School Zone Beacon Installation 0 59,500 0 0 23 61 Sh ady Grove Rd. Street Im Davis to Cla - Hibbins 0 130,000 900,000 0 63 ISignal Tinninq Synchronization Update 0 0 0 24 65 Si nalization Davis Blvd. Burse Rd. 0 50,000 0 25 67 Si nalization Precinct Line Rd. Amundson Dr. 0 A85,000 65,000 0 26 69 Si nalization Precinct Line Rd. Rumfield Rd. 0 65,000 0 $159,400 1,950,000 247,600 59,500 1,030,000 80,000 135,000 150,000 150,000 Total New Projects $0 $1,146,180 $1,410,320 $1,405,000 $3,961,500 Schedule 1 2007/2008 Street & Sidewalk Capital Projects Budget Summary Map Pg. Project Proposed Estimated Remaining I.O. No. To Date 2007/2008 2008/2009 Amount Total Future Proiects 27 $0 Briley Drive Lariat Trail to Rufe Snow Drive $0 $0 $0 $500,000 28 0 Clo ce Court Northeast Loop 820 to Maplewood Ave 0 0 0 750,000 29 G.O. Bonds, Existin q Funds 1994 Pro ram Colorado Blvd. Harwood Rd to Grapevine Hwy) 0 0 0 800,000 30 0 Boulevard 26 Widening (I.H. 820 to Precinct Line) 0 0 0 2,800,000 31 1,715,000 Boulevard 26/Harwood Road Intersection 0 0 0 1,000,000 32 850,000 Hightower Drive, Section C (Smithfield to Davis) 0 0 0 1,020,000 33 65,000 Hightower Drive, Section D (Stonybrooke to Eden) 0 0 0 840,000 34 Pa -as- ou- go Reserve for Capital I provern ents Hol id ay Lane Street I pr., Al I.H. 820 to Dick Lewis 0 0 180,000 397,400 35 50,000 IH 820 South Access Improvements TxDOT 0 0 0 645,500 36 0 Mackey Drive (Briley Drive to Glenview Drive 0 0 0 620,000 37 567,528 Meadowlakes Drive Bride I.H. 820 ) [TxDOT] 0 0 0 485,000 38 12,062,800 Starnes Road Rufe Snow Drive to Crosstimbers Lane 0 0 0 600,000 39 City of Keller ITabor Street Rufe Snow Drive to Steven Street 0 0 0 400,000 40 Terry Drive Susan Lee Lane to North Richland Blvd 0 0 0 375,000 41 Trinidad Drive Rufe Snow Drive to Holiday Lane 0 0 0 1,110,000 42 Yarmouth Ave Mid - Cities Blvd to Newcastle Place 0 0 0 540,000 - Unspecified Street Projects 0 0 0 7,164,000 Total Future Projects Total Project Costs Sources of Funds $500,000 750,000 800,000 2,800,000 1,000,000 1,020,000 840,000 577,400 645,500 620,000 485,000 600,000 400,000 375,000 1,110,000 540,000 7,164,000 $0 $0 $180,000 $20,046,900 $20,226,900 $22,147,500 $11,261,458 $26,664,820 $28,578,900 $88,652,678 G.O. Bonds, Future Issuance 2003 Pro ram $0 $3,300,000 $3,371,560 $16,809,000 G.O. Bonds, Existin Funds 2003 Pro ram 3,970,000 0 0 0 G.O. Bonds, Future Issuance 1994 Pro ram 0 178,000 180,000 247,000 G.O. Bonds, Existin q Funds 1994 Pro ram 3,518,805 0 0 0 G.O. Bonds, Existing Funds (19 85 Program) 468,500 0 0 0 Certificates of Obli ation, Future Issuance 0 942,200 52,800 1,715,000 Certificates of Obli ation, Existinq Funds 3,732,331 0 0 0 Uti lity 0 perati ons for Cap ital Proj ects 850,000 298,440 0 1,400,000 Project Savin s 1,644,167 794,100 65,000 150,400 Traffic Safety Fund Reserves 0 170,000 115,000 Pa -as- ou- go Reserve for Capital I provern ents 100,000 104,000 102,000 0 Permanent Sidewalk Maintenance Fund 0 50,000 0 0 Permanent Street Maintenance Fund 800,000 800,000 0 0 ISTEA Grant Funds 13,591,107 0 0 0 CDBG Funds 567,528 159,400 0 0 TEA- 21 Fundinq 1,645,840 800,000 12,062,800 2,000,000 TxDOT Fundin 7,715,000 240,000 0 1,13"0,50 City of Keller 362,500 0 2,449,700 $23,480,560 3,970,000 605,000 3,518,805 468,500 2,710,000 3,732,331 2,548,440 2,653,667 285,000 306,000 50,000 1,600,000 13,591,107 726,928 16,508,640 9,085,500 2,812,200 Total Sources of Funds $38,965,778 $7,836,140 $18,398,860 $23,451,900 $88,652,678 Schedule 2 2007/2008 Drainage Capital Projects Budget Summary Map Pg. Project Proposed Estimated Remaining I.O. No. To Date 2007/2008 2008/2009 Amount Total Continuing Projects 0 74,500 0 0 F—T773TC—h annel Cleanin q 1 Street Draina e Im 2007 $300,000 $45,000 $0 $0 $345,000 Total Continuing Projects $300,000 $45,000 $0 $0 $345,000 New Projects 75 1 1 77 Icon l in Horse Course Drainae m m Imp. 500,000 (2008) $ 0 $430,000 500,000 $0 $ $ 0 500,000 Total New Projects $0 $930,000 $0 $0 $930,000 Future Projects 3 Mte w Estates Ch n nel ladowvi Creek g m veents so 0 0 $ $240,000 $0 2,500,000 2,500,000 Total Future Projects Total Project Costs Sources of Funds G. 0. Bonds, Future Issuance 2003 Pro ram Certificates of ON iq ati on, Future Issuance G. 0. Bonds, Existin q Funds 1994 Pro ram G. 0. Bonds, Existin q Funds 1985 Pro ram Project Savin s $0 $0 $0 $2,740,000 $2,740,000 $300,000 $975,000 $0 $2,740,000 $4,015,000 $0 $0 $0 $2,500,000 0 500,000 0 0 165,500 0 0 0 74,500 0 0 0 345,000 430,000 0 0 $2,500,000 500,000 165,500 74,500 775,000 Total Sources of Funds $585,000 $930,000 $0 $2,500,000 $4,015,000 Schedule 3 2007/2008 Utility Capital Projects Budget Summary Map Pg. I.O. No. Continuinci Proiects - 85 Big Fossil Creek Wastewater Outtall 1 87 College Hills Water Well Improvements 2 89 1 820 Utility Adj. (Interchange to Meadowlakes) 3 91 North Hills Sanitary Sewer Improvements 4 93 Rufe Snow Elevated Storage Tank Removal 5 95 1 Starnes Elevated Tank Rehabilitation - 96 Unidirectional Flushing Program - 97 Wastewater System Rehabilitation - Priority 3 [EPA] 6 99 Water Line (Amundson RoadMinter ParkJNewman) 7 101 Water Line (Boulevard 26ICardinal Lane) 8 103 Water Line (Precinct Lin e1TRA Pump Station) Total Continuing Projects New Proiects 9 105 Amundson Elevated Tank Rehabilitation 10 107 Lift Station Expansion (Boulevard 26 at Precinct Line) - 108 Small Water Main Replacement (2008) 44 109 Telemetric Water Meter Annual Maintenance (2008) 45 111 Utility Capital Projects (2008) 11 1 113 JVVater Line (Holiday Lane and College Cir.) 12 115 JVVater Line (Holiday Lane and Iron Horse Blvd.) - 117 JVVater lSewer Main Replacement (2008) 13 119 JVVater Storage Tank Site Upgrades 14 121 JVVestern Center Water Facility Expansion Total New Projects Future Sewer Proiects 41 $25,000 Line 1- 21" WW Relief Line along Loop 820 42 80,000 Line 10- 24" WW Line along Richland Plaza Dr 43 0 Line 11- 12" WW Line along Charles St 44 450,000 Line 12- 15" WW Line East along Whitfield Ct 45 200,000 Line 14- 30" WW Line along Oak Ridge Terrace 46 20,000 Line 15- 12" WW Line East of Cummings 47 0 Line 16- 12 "115" WW Line along Thornbird Rd 48 0 Line 17- 15" WW Line along Jennings Dr 49 20,000 Line 18- 12" WW Line along Diamond Loch W 50 300,000 Line 3- 30" WW Relief Line along Industrial Park Blvd 51 0 Line 4- 18" WW Line along Little Ranch Rd 52 74,500 Line 5- 27" WW Line going north from Boulevard 26 53 395,205 Line 7- 27" WW Line going south from Boulevard 26 54 15,000 Line 8- Parallel 18" WW along Simmons Rd 55 0 Line 9- 12" WW Line along Rumfield and Redwood - 0 IMiscellaneous Sewer Line Rehabilitation Project Proposed Estimated Remaining To Date 2007/2008 2008/2009 Amount $0 $25,000 $175,000 $1,000,000 80,000 20,000 0 0 350,000 50,000 450,000 150,000 100,000 200,000 0 0 20,000 130,000 0 0 60,000 1 340,000 0 0 100,000 20,000 0 0 300,000 330,000 0 0 120,000 800,000 74,500 0 60,000 395,205 64,795 0 15,000 100,000 10,000 0 Total $1,200,000 100,000 1,000,000 300,000 150,000 400,000 120,000 630,000 994,500 520,000 125,000 $1,205,000 $2,410,205 $774,295 $1,150,000 $5,539,500 $0 $90,000 $600,000 $0 $690,000 1,368,000 325,000 300,000 25,000 655,000 1,130,000 325,000 300,000 40,000 0 168,000 1,000,000 200,000 0 325,000 0 0 0 300,000 0 0 0 25,000 0 0 0 80,000 1 575,000 0 0 130,000 1,000,000 0 0 325,000 0 0 0 300,000 0 0 0 40,000 0 0 $0 $1,783,000 $3,175,000 $200,000 $5,158,000 $0 $0 $0 $107,675 $107,675 605,270 670,784 1,548,624 565,958 406,896 464,218 500,976 300,392 748,944 1,813,224 1,431,360 302,400 1,181,783 1,450,848 4,032,000 0 0 0 605,270 0 0 0 670,784 0 0 0 1,548,624 0 0 0 565,958 0 0 1 0 406,896 0 0 0 464,218 0 0 0 500,976 0 0 0 300,392 0 0 0 748,944 0 0 0 1,813,224 0 0 0 1,431,360 0 0 0 302,400 0 0 0 1,181,783 0 0 0 1,450,848 0 0 0 4,032,000 Total Future Sewer Projects $0 $0 $0 $16,131,352 $16,131,352 Schedule 3 2007/2008 Utility Capital Projects Budget Summary Map Pg. I.O. No. Future Water Proiects 15 $0 Booth Calloway 2 MG Ground Storage Tank 16 $400,000 500,000 500,000 150,000 700,000 1,460,390 5,174,400 163,772 163,772 322,560 3,360,000 318,470 255,680 1,025,993 206,379 1,150,330 2,243,828 474,768 737,251 2,016,000 2,688,000 640,147 490,896 1,662,091 739,267 2,016,000 190,440 664,272 1,524,840 500,000 700,000 Bursey 2 MG Elevated Storage Tank 17 0 College Hills 5 MG General Storage Tank _ 0 Impact Fee Update 18 0 Johnson Booster Pump Station Expansion 19 150,000 ILine 1- 24" VVL along Mid - Cities Blvd 20 0 Line 10- Add 5 MG GST at Watauga PS 21 0 Line 11- 8" VVL from Davis Blvd 22 0 Line 12- 8" VVL from existing 24" VVL in Hightower Dr 23 5,174,400 Line 13- Install 3 pressure reducing stations; Hwy 377 24 163,772 Line 14- Off site water supply improvements 25 0 Line 15- 16" VVL along N. Tarrant Pkwy 26 0 ILine 16- 16" VVL along Smithfield Rd 27 322,560 Line 17- 16" VVL Hightower south along Meadow Rd 28 0 Line 18- 12" VVL along Eagle Crest Dr 29 0 Line 19- 16" VVL from existing 16" VVL along Janetta Dr 30 0 Line 2- 30" VVL along Mid - Cities Blvd 31 255,680 Line 20- 12" VVL from Corona Dr 32 0 Line 21- 12" VVL along Glenview Dr 33 0 Line 22- Expand pumping capacity at Watauga PS - 0 Line 23- Miscellaneous Water Line Rehabilitation 34 1,150,330 Line 24- 16" VVL from Davis Blvd 35 0 Line 25- Replace existing 8" VVL along Boulevard 26 36 0 ILine 26- Replace 12" along Precinct Line Rd. 37 0 Line 27- New 12" VVL from Precinct Line Rd - 737,251 Line 28- Miscellaneous Water Line Rehabilitation 38 0 Line 8- 12" VVL across Loop 820 39 0 Line 9- 12" VVL south from Janetta Dr along Holiday Ln - 0 Miscellaneous Water Main Replacement 40 1 IShady Grove 2 MG Elevated Storage Tank 0 0 Telemetric Water Meter Annual Maintenance Total Future Water Projects Total Project Costs Sources of Funds Certificates of Obligation Utility Operations for Capital Projects Project Savings TXDOT EPA Surcharge Impact Fees Project Proposed Estimated Remaining To Date 2007/2008 2008/2009 Amount Total $0 $0 $0 $400,000 $400,000 500,000 500,000 150,000 700,000 1,460,390 5,174,400 163,772 163,772 322,560 3,360,000 318,470 255,680 1,025,993 206,379 1,150,330 2,243,828 474,768 737,251 2,016,000 2,688,000 640,147 490,896 1,662,091 739,267 2,016,000 190,440 664,272 1,524,840 500,000 700,000 0 0 0 500,000 0 0 0 500,000 0 0 0 150,000 0 0 0 700,000 0 0 0 1,460,390 0 0 0 5,174,400 0 0 163,772 0 0 0 163,772 0 0 0 0 322,560 0 0 0 3,360,000 0 0 0 318,470 0 0 0 255,680 0 0 0 1,025,993 0 0 0 206,379 0 0 0 1,150,330 0 0 0 2,243,828 0 0 0 474,768 0 0 0 737,251 0 0 0 2,016,000 0 0 0 2,688,000 0 0 0 640,147 0 0 0 490,896 0 0 0 1,662,091 0 0 0 739,267 0 0 0 2,016,000 0 0 0 190,440 0 0 0 664,272 0 0 514,200 1,010,640 0 0 0 500,000 0 0 100,000 600,000 $0 $0 $941,744 $32,197,802 $33,139,546 $1,205,000 $4,193,205 $4,891,039 $49,679,154 $59,968,398 $0 $600,000 $4,053,844 $33,495,824 $38,149,668 2,485,170 1,015,000 0 0 3,500,170 281,518 0 0 0 281,518 238,482 0 0 0 238,482 630,000 0 0 0 630,000 94,335 1,138,700 1,102,195 1 14,833,330 17,168,560 Total Sources of Funds $3,729,505 $2,753,700 $5,156,039 $48,329,154 $59,968,398 Schedule 4 2007/2008 Park and Recreation Capital Projects Budget Summary Man s ID No. Continuing Proiects 1 133 Boulevard 26 Multi -Use Trail [ISTEA] 2 135 Calloway Branch Trail Development [CMAQ] - 137 Central West Neighborhood Park 3 139 City Entry Sign (East Harwood Road) 4 141 Davis Boulevard Streetscape [TxDOT] 17 143 Founders and Legacy Recognition Program 5 145 J. B. San dlin Park Imp. (Drainage Channel) 6 147 Liberty Park Lake Phase I and II 9 7 149 Library Park Plaza 8 151 Little Bear Creek Trail Development [ISTEA] 9 153 Public Art at Library Park Plaza Total Continuing Projects New Proiects - 155 Annual Tree Planting (2008) 10 157 Lighting at Tipps Canine Hollow 11 159 Median and Entry Si n Imp. Glenview & Loop 820 - 160 Park Infrastructure Maintenance (2008) 16 161 Parks and Recreation Security and Liqhtinq Systems 17 163 1 PI avqrou nd and Bleacher Shade Structures 12 1 165 JTipps Canine Hollow Additional Parkin Total New Projects Future Proiects - $413,859 Asset Mana ement - Park Infrastructure 13 $710,183 928,000 840,268 45,000 164,400 90,000 94,210 341,200 300,000 2,400,000 150,000 Cross Timbers Park Develo ment Phase II 14 348,781 Girl's Fast Pitch Softball Com pl ex II 15 0 Little Bear Creek Community Park 16 20,000 Northfield Park Redevelopment 17 0 IStonybrooke Nei hborhood Park Total Future Projects Total Project Costs Project Proposed Estimated Remaining To Date 2007/2008 2008/2009 Amount Total $130,046 $413,859 $166,278 $0 $710,183 928,000 840,268 45,000 164,400 90,000 94,210 341,200 300,000 2,400,000 150,000 184,530 55,908 348,781 338,781 390,268 0 0 450,000 20,000 25,000 0 0 132,180 32,220 0 0 30,000 30,000 30,000 0 10,000 84,210 0 0 24,600 84,050 232,550 0 28,000 272,000 0 0 388,154 132,342 944,752 934,752 804 149,196 0 0 $1,338,582 $1,278,785 $1,722,361 $1,723,533 $6,063,261 $0 $35,000 $0 $0 $35,000 120,000 50,000 124,500 20,000 95,000 36,000 0 120,000 0 0 0 50,000 0 0 0 124,500 0 0 0 20,000 0 0 0 95,000 1 0 0 0 36,000 11 0 0 $0 $480,500 $0 $0 $480,500 $0 $0 $219,135 $365,755 $2 ,396,387 $584,890 0 $11,1052,808 0 ISTEA Grant Fu dsfor 0 2,500,000 2,500,000 0 0 $2,726,868 $1,276,003 $1,607,217 $13,218,563 $18,828,651 0 3,500,000 3,500,000 0 0 0 1,550,000 1,550,000 0 0 0 3,700,000 3,700,000 0 0 0 450,000 450,000 $0 $0 $219,135 $12,065,755 $12,284,890 $1,338,582 $1,759,285 $1,941,496 $13,789,288 $18,828,651 Sources of Funds sales Tax CIP $2 ,396,387 $816,02,65,755 $11,1052,808 $13,100,474 ISTEA Grant Fu dsfor 30,481 1,158,082 Total Sources of Funds $2,726,868 $1,276,003 $1,607,217 $13,218,563 $18,828,651 Man s ID No. New Proiects Schedule 5 2007/2008 Aquatic Park Capital Projects Budget Summary Project Proposed Estimated Remaining To Date 2007/2008 2008/2009 Amount - 172 Finish Out and Operation of Library Coffee Shop $0 $25,000 $0 $0 1 173 Mat Racer Dispatch System 0 30,000 0 0 - 174 NRH2O General Facility Improvement (2008) 0 50,000 0 0 2 175 Strategic Plan - Parking Lot 0 270,000 0 0 3 176 Strategic Plan - Picnic Area 0 50,000 0 0 4 177 Strategic Plan - Restrooms /Hopper Expansion 0 35,000 265,000 0 5 1 178 IStrategic Plan - Third Phase Attraction 0 150,000 1,600,000 0 Total New Projects Total Project Costs Sources of Funds Total $25,000 30,000 50,000 270,000 50,000 300,000 1,750,000 $0 $610,000 $1,865,000 $0 $2,475,000 $0 $610,000 $1,865,000 $0 $2,475,000 Aquatic Park Expansion Reserve $0 $425,000 $0 $0 Aquatic Park Infrastructure Reserve 0 0 0 0 Certificates of Obligation 0 185,000 1,865,000 0 $425,000 0 2,050,000 Total Sources of Funds $0 $610,000 $1,865,000 $0 $2,475,000 Man s ID No. Continuina Proiects Schedule 6 2007/2008 Municipal Facility Capital Projects Budget Summary Project Proposed Estimated Remaining To Date 2007/2008 2008/2009 Amount Total 1 1184 INPH Library F 2 1185 INPH Animal Adoption tion &Rescue Center Expansion Total Continuing Projects Permanent Buildina Maintenance Proiects A $7,350,000 $2,850,000 $0 $0 $10,200,000 170,000 240,000 2,490,000 100,000 3,000,000 $7,520,000 $3,090,000 $2,490,000 $100,000 $13,200,000 3 187 City Hall Carpet Replacement (2008) $0 $97,000 $0 $0 4 188 City Hall Interior Paintin 2008 0 53,000 0 0 5 189 Records Stora e Roof Replacement 2008 0 66,800 0 0 - 190 Roof Repairs 2008 0 51,000 0 0 Total Permanent Building Maintenance Projects New Proiects $0 $267,800 $0 $0 6 191 820 Widenin 1 City Hall Modifications $0 $650,000 $0 $0 7 192 NRH Recreation Center TIF #2 0 1,400,000 9,200,000 11,300,000 8 193 Concrete Repairs to Fire Station 92 0 42,400 0 0 9 194 Covered Space for Dry Materials Stora e 0 30,000 0 0 - 195 Roofinq Re Iacement/Re pairs 2008 0 1,320,641 0 0 10 1 196 IService Center Work Area Improvements 0 42,800 0 0 Total New Projects $97,000 53,000 66,800 51,000 An�T nnn $650,000 21,900,000 42,400 30,000 1,320,641 42,800 $0 $3,485,841 $9,200,000 $11,300,000 $23,985,841 Future Projects Emergency Operations Center $0 $0 $250,000 $0 $250,000 Total Future Projects $0 $0 $250,000 $0 $250,000 Total Project Costs Sources of Funds $7,520,000 $6,843,641 $11,940,000 $11,400,000 $37,703,641 Permanent Building Services Fund $0 $267,800 $0 $0 G.O. Bonds, Future Issuance (2003 Program) 0 0 1,550,000 0 Certificates of 0bli qati on Tax Increment Financin q District 92 10,200,000 2,000,000 18,800,000 0 Sales Tax 0 500,000 600,000 0 Building Services Reserves 0 42,800 0 0 General Fund Pay -As- You -Go Reserves 0 72,400 0 0 General Fund Desi nated Reserves 650,000 Donations Fund 535,914 0 0 0 Animal Control Fund Raising Campaign 190,000 974,086 0 0 Insurance Settlement 1,320,641 $267,800 1,550,000 31,000,000 1,100,000 42,800 72,400 650,000 535,914 1,164,086 1,320,641 Total Sources of Funds $10,925,914 $5,827,727 $20,950,000 $0 $37,703,641 3 187 City Hall Carpet Replacement (2008) $0 $97,000 $0 $0 4 188 City Hall Interior Paintin 2008 0 53,000 0 0 5 189 Records Stora e Roof Replacement 2008 0 66,800 0 0 - 190 Roof Repairs 2008 0 51,000 0 0 Total Permanent Building Maintenance Projects New Proiects $0 $267,800 $0 $0 6 191 820 Widenin 1 City Hall Modifications $0 $650,000 $0 $0 7 192 NRH Recreation Center TIF #2 0 1,400,000 9,200,000 11,300,000 8 193 Concrete Repairs to Fire Station 92 0 42,400 0 0 9 194 Covered Space for Dry Materials Stora e 0 30,000 0 0 - 195 Roofinq Re Iacement/Re pairs 2008 0 1,320,641 0 0 10 1 196 IService Center Work Area Improvements 0 42,800 0 0 Total New Projects $97,000 53,000 66,800 51,000 An�T nnn $650,000 21,900,000 42,400 30,000 1,320,641 42,800 $0 $3,485,841 $9,200,000 $11,300,000 $23,985,841 Future Projects Emergency Operations Center $0 $0 $250,000 $0 $250,000 Total Future Projects $0 $0 $250,000 $0 $250,000 Total Project Costs Sources of Funds $7,520,000 $6,843,641 $11,940,000 $11,400,000 $37,703,641 Permanent Building Services Fund $0 $267,800 $0 $0 G.O. Bonds, Future Issuance (2003 Program) 0 0 1,550,000 0 Certificates of 0bli qati on Tax Increment Financin q District 92 10,200,000 2,000,000 18,800,000 0 Sales Tax 0 500,000 600,000 0 Building Services Reserves 0 42,800 0 0 General Fund Pay -As- You -Go Reserves 0 72,400 0 0 General Fund Desi nated Reserves 650,000 Donations Fund 535,914 0 0 0 Animal Control Fund Raising Campaign 190,000 974,086 0 0 Insurance Settlement 1,320,641 $267,800 1,550,000 31,000,000 1,100,000 42,800 72,400 650,000 535,914 1,164,086 1,320,641 Total Sources of Funds $10,925,914 $5,827,727 $20,950,000 $0 $37,703,641 Total Permanent Building Maintenance Projects New Proiects $0 $267,800 $0 $0 6 191 820 Widenin 1 City Hall Modifications $0 $650,000 $0 $0 7 192 NRH Recreation Center TIF #2 0 1,400,000 9,200,000 11,300,000 8 193 Concrete Repairs to Fire Station 92 0 42,400 0 0 9 194 Covered Space for Dry Materials Stora e 0 30,000 0 0 - 195 Roofinq Re Iacement/Re pairs 2008 0 1,320,641 0 0 10 1 196 IService Center Work Area Improvements 0 42,800 0 0 Total New Projects $97,000 53,000 66,800 51,000 An�T nnn $650,000 21,900,000 42,400 30,000 1,320,641 42,800 $0 $3,485,841 $9,200,000 $11,300,000 $23,985,841 Future Projects Emergency Operations Center $0 $0 $250,000 $0 $250,000 Total Future Projects $0 $0 $250,000 $0 $250,000 Total Project Costs Sources of Funds $7,520,000 $6,843,641 $11,940,000 $11,400,000 $37,703,641 Permanent Building Services Fund $0 $267,800 $0 $0 G.O. Bonds, Future Issuance (2003 Program) 0 0 1,550,000 0 Certificates of 0bli qati on Tax Increment Financin q District 92 10,200,000 2,000,000 18,800,000 0 Sales Tax 0 500,000 600,000 0 Building Services Reserves 0 42,800 0 0 General Fund Pay -As- You -Go Reserves 0 72,400 0 0 General Fund Desi nated Reserves 650,000 Donations Fund 535,914 0 0 0 Animal Control Fund Raising Campaign 190,000 974,086 0 0 Insurance Settlement 1,320,641 $267,800 1,550,000 31,000,000 1,100,000 42,800 72,400 650,000 535,914 1,164,086 1,320,641 Total Sources of Funds $10,925,914 $5,827,727 $20,950,000 $0 $37,703,641 Total New Projects $97,000 53,000 66,800 51,000 An�T nnn $650,000 21,900,000 42,400 30,000 1,320,641 42,800 $0 $3,485,841 $9,200,000 $11,300,000 $23,985,841 Future Projects Emergency Operations Center $0 $0 $250,000 $0 $250,000 Total Future Projects $0 $0 $250,000 $0 $250,000 Total Project Costs Sources of Funds $7,520,000 $6,843,641 $11,940,000 $11,400,000 $37,703,641 Permanent Building Services Fund $0 $267,800 $0 $0 G.O. Bonds, Future Issuance (2003 Program) 0 0 1,550,000 0 Certificates of 0bli qati on Tax Increment Financin q District 92 10,200,000 2,000,000 18,800,000 0 Sales Tax 0 500,000 600,000 0 Building Services Reserves 0 42,800 0 0 General Fund Pay -As- You -Go Reserves 0 72,400 0 0 General Fund Desi nated Reserves 650,000 Donations Fund 535,914 0 0 0 Animal Control Fund Raising Campaign 190,000 974,086 0 0 Insurance Settlement 1,320,641 $267,800 1,550,000 31,000,000 1,100,000 42,800 72,400 650,000 535,914 1,164,086 1,320,641 Total Sources of Funds $10,925,914 $5,827,727 $20,950,000 $0 $37,703,641 $267,800 1,550,000 31,000,000 1,100,000 42,800 72,400 650,000 535,914 1,164,086 1,320,641 Total Sources of Funds $10,925,914 $5,827,727 $20,950,000 $0 $37,703,641 Map ID No. Continuina Proiects Schedule 7 2007/2008 Major Equipment Capital Projects Budget Summary Project Proposed Estimated Remaining To Date 2007/2008 2008/2009 Amount Total Total Continuing Projects New Proiects 0 491,865 0 0 g $491,865 336,000 456,000 $336,000 $551,865 $60,000 $0 $947,865 202 Ambulance Replacement $0 $219,266 $0 $0 204 Camera Van Replacement (Unit #551) 0 65,000 0 0 205 Cartegraph Sewer Water Software Expansion 0 110,000 0 0 206 Emergency Incident Command Vehicle Replacement 0 83,741 0 0 208 Mobile Data Computer Replacement in Fire Apparatus 0 164,850 0 0 209 Pilot Municipal Wireless Network 0 80,000 0 0 210 RFI D Inventory Control and Security System 0 231,300 0 0 211 Skid Steer Loader 0 50,000 0 0 212 Upgrade Motorola Centracom Radio System 0 107,000 0 0 Total New Projects Total Project Costs Sources of Funds $219,266 65,000 110,000 83,741 164,850 80,000 231,300 50,000 107,000 $0 $1,111,157 $0 $0 $1,111,157 $336,000 $1,663,022 $60,000 $0 $2,059,022 Certificates of Obligation $440,000 $284,266 $0 $0 Crime Control and Prevention District 120,000 60,000 60,000 0 Project Savin s 0 38,446 0 0 General Fund 0 13,419 0 0 Utility Fund Reserves 0 110,000 0 0 Equipment Reserves 0 83,741 0 0 Pay As You Go Reserves 0 361,300 0 0 Information Services Reserve 380,850 107,000 L 0 0 $724,266 240,000 38,446 13,419 110,000 83,741 361,300 487,850 Total Sources of Funds $940,850 $1,058,172 $60,000 $0 $2,059,022 200 Fire Engine Replacement (Unit - 201 rad Police Mobile Video System U rade 60,000 60,000 0 Total Continuing Projects New Proiects 0 491,865 0 0 g $491,865 336,000 456,000 $336,000 $551,865 $60,000 $0 $947,865 202 Ambulance Replacement $0 $219,266 $0 $0 204 Camera Van Replacement (Unit #551) 0 65,000 0 0 205 Cartegraph Sewer Water Software Expansion 0 110,000 0 0 206 Emergency Incident Command Vehicle Replacement 0 83,741 0 0 208 Mobile Data Computer Replacement in Fire Apparatus 0 164,850 0 0 209 Pilot Municipal Wireless Network 0 80,000 0 0 210 RFI D Inventory Control and Security System 0 231,300 0 0 211 Skid Steer Loader 0 50,000 0 0 212 Upgrade Motorola Centracom Radio System 0 107,000 0 0 Total New Projects Total Project Costs Sources of Funds $219,266 65,000 110,000 83,741 164,850 80,000 231,300 50,000 107,000 $0 $1,111,157 $0 $0 $1,111,157 $336,000 $1,663,022 $60,000 $0 $2,059,022 Certificates of Obligation $440,000 $284,266 $0 $0 Crime Control and Prevention District 120,000 60,000 60,000 0 Project Savin s 0 38,446 0 0 General Fund 0 13,419 0 0 Utility Fund Reserves 0 110,000 0 0 Equipment Reserves 0 83,741 0 0 Pay As You Go Reserves 0 361,300 0 0 Information Services Reserve 380,850 107,000 L 0 0 $724,266 240,000 38,446 13,419 110,000 83,741 361,300 487,850 Total Sources of Funds $940,850 $1,058,172 $60,000 $0 $2,059,022 202 Ambulance Replacement $0 $219,266 $0 $0 204 Camera Van Replacement (Unit #551) 0 65,000 0 0 205 Cartegraph Sewer Water Software Expansion 0 110,000 0 0 206 Emergency Incident Command Vehicle Replacement 0 83,741 0 0 208 Mobile Data Computer Replacement in Fire Apparatus 0 164,850 0 0 209 Pilot Municipal Wireless Network 0 80,000 0 0 210 RFI D Inventory Control and Security System 0 231,300 0 0 211 Skid Steer Loader 0 50,000 0 0 212 Upgrade Motorola Centracom Radio System 0 107,000 0 0 Total New Projects Total Project Costs Sources of Funds $219,266 65,000 110,000 83,741 164,850 80,000 231,300 50,000 107,000 $0 $1,111,157 $0 $0 $1,111,157 $336,000 $1,663,022 $60,000 $0 $2,059,022 Certificates of Obligation $440,000 $284,266 $0 $0 Crime Control and Prevention District 120,000 60,000 60,000 0 Project Savin s 0 38,446 0 0 General Fund 0 13,419 0 0 Utility Fund Reserves 0 110,000 0 0 Equipment Reserves 0 83,741 0 0 Pay As You Go Reserves 0 361,300 0 0 Information Services Reserve 380,850 107,000 L 0 0 $724,266 240,000 38,446 13,419 110,000 83,741 361,300 487,850 Total Sources of Funds $940,850 $1,058,172 $60,000 $0 $2,059,022 Total New Projects Total Project Costs Sources of Funds $219,266 65,000 110,000 83,741 164,850 80,000 231,300 50,000 107,000 $0 $1,111,157 $0 $0 $1,111,157 $336,000 $1,663,022 $60,000 $0 $2,059,022 Certificates of Obligation $440,000 $284,266 $0 $0 Crime Control and Prevention District 120,000 60,000 60,000 0 Project Savin s 0 38,446 0 0 General Fund 0 13,419 0 0 Utility Fund Reserves 0 110,000 0 0 Equipment Reserves 0 83,741 0 0 Pay As You Go Reserves 0 361,300 0 0 Information Services Reserve 380,850 107,000 L 0 0 $724,266 240,000 38,446 13,419 110,000 83,741 361,300 487,850 Total Sources of Funds $940,850 $1,058,172 $60,000 $0 $2,059,022 Certificates of Obligation $440,000 $284,266 $0 $0 Crime Control and Prevention District 120,000 60,000 60,000 0 Project Savin s 0 38,446 0 0 General Fund 0 13,419 0 0 Utility Fund Reserves 0 110,000 0 0 Equipment Reserves 0 83,741 0 0 Pay As You Go Reserves 0 361,300 0 0 Information Services Reserve 380,850 107,000 L 0 0 $724,266 240,000 38,446 13,419 110,000 83,741 361,300 487,850 Total Sources of Funds $940,850 $1,058,172 $60,000 $0 $2,059,022 $724,266 240,000 38,446 13,419 110,000 83,741 361,300 487,850 Total Sources of Funds $940,850 $1,058,172 $60,000 $0 $2,059,022 Maps ID No. Continuinq Proiects Schedule 8 2887/2888 Economic Development Capital Projects Budget Summary Project Proposed Estimated Remaining To Date 2007/2008 2008/2009 Amount Total 1 217 Boulevard 26 Intersection Improvements $250,000 2 219 Commercial Redevelopment Pro ram 0 - 220 Sign Removal Assistance Program 20,000 - 221 Sustainable/Transit/Redevelopment Planninq 50,000 Total Continuing Projects New Proiects $200,000 $0 $0 $0 $450,000 3,000,000 Commercial Property Enhancement Pro ram IRufe 0 4 0 Snow /Glenview Intersection Concept Study 3,000,000 20,000 0 0 40,000 35,000 0 0 85,000 $320,000 $3,255,000 $0 $0 $3,575,000 3 223 Boulevard 26 Intersection Imp. ( Rodger Line) $0 - J 225 Commercial Property Enhancement Pro ram IRufe 0 4 227 Snow /Glenview Intersection Concept Study 0 Total New Projects Total Project Costs Sources of Funds $175,000 $275,000 $0 $450,000 100,000 0 100,000 25,000 0 0 25,000 $0 $300,000 $275,000 $0 $575,000 $320,000 $3,555,000 $275,000 $0 $4,150,000 General Fund Reserves $3,085,000 Sales Tax Reserve for CIP 450,000 Gas Fund Reserves desi qn ate d for ED activities Pay -as- you -go Reserve for Capital Improvements 20,000 $0 $0 $0 $3,085,000 200,000 275,000 0 925,000 100,000 100,000 20,000 0 0 40,000 Total Sources of Funds $3,555,000 $320,000 $275,000 $0 $4,150,000 CIP Personnel General CIP Personnel Utility CIP Personnel Utility Construction Personnel Municipal Facilities Project Funding' U -ti lit Construction Project Funding' Total CIP Personnel Costs Schedule 9 2007/2008 CIP Personnel Budget Summary Revised Proposed Estimated Remaining 2006/2007 2007/2008 2008/2009 Amount Total $460,406 $513,430 $539,102 $566,057 $2,078,994 284,830 299,984 314,983 330,732 1,230,530 611,995 694,496 729,221 765,682 2,801,394 (50,000) (100,000) (105,000) (110,000) (365,000) 525,000 625,000 650,000 675,000 (2,475,000) $782,231 $782,910 $828,306 $877,471 $3,270,917 Sources of Funds Project Savings and Interest Income 1 $ 410,406 1 $413,430 $434,102 $456,057 $1,713,994 Utility Reserves and Interest Income 371,825 369,480 394,204 421,414 1,556,923 Total Sources of Funds $782,231 $782,910 $828,306 $877,471 $3,270,917 * Portions of General CIP Personnel and Utility Construction Personnel are funded from specific projects CITY OF NORTH RICHLAND HILLS Department: Budget Council Meeting Date: 8 -27 -2007 Presented by: Drew Corn Agenda No. C.2 Subject: CN 2007 -069 Conduct Public Hearing on Proposed Tax Rate Senate Bills 18 and 567 that were passed during the regular 79th Session of the Texas Legislature made several changes to the way the tax rate must be adopted. One of the changes is the requirement to hold two public hearings on the proposed property tax rate if the proposed rate exceeds the effective tax rate. Because the proposed rate of 57¢ is higher than the effective tax rate of 56.4932¢, we must hold two public hearings. This August 27 hearing is the first of the two required hearings. The second required public hearing will be held at a Special Council Meeting on Thursday, August 30, 2007 at 6:00 pm. Senate Bills 18 and 567 also have very specific requirements on how to publish notice of the public hearings. Notice of the public hearings was duly posted in the Northeast Section of the Fort Worth Star - Telegram on August 20, 2007 per state law. Senate Bills 18 and 567 also require us to phrase the notice of public hearing on the tax rate as a "tax increase" because the proposed tax rate is above the effective tax rate. The effective tax rate is basically the property tax rate necessary to produce the same amount of property tax revenues as the prior year. The tax rate is scheduled to be adopted on September 10, 2007 during the regular 7:00 pm City Council meeting. The proposed tax rate for Fiscal Year 2007 -2008 is 57¢. If adopted, this will be the 15th consecutive year the City has maintained a 57¢ tax rate. Individual taxpayers' property taxes may decrease, increase or stay the same depending on the appraised value of their property. Senior and disabled property owners who have a tax ceiling (even if their property values have increased) will pay the same amount of property tax as the previous year. The City of North Richland Hills is proud of the progress we have made while demonstrating sound financial management of our Citizen's tax dollars. Recommendation: To open the public hearing, receive public comments on the proposed 57¢ tax rate, announce September 10, 2006 as the date of the tax rate adoption, and close public hearing. No action is required at this hearing as this is held solely for the purpose of receiving comments. As stated, action on the tax rate is proposed for the September 10 Council meeting. FISCAL YEAR 2007-2008 SCHEDULE 4 - SUMMARY OF PROPERTY'TAX REVENUE AND DISTRIBUTION NET TAXABLE VALUE: Total Appralsed Value as of July 25, 2007 $3,927,589,785 Less Exemption& D is a bled V ete ran (3,698,142) Over 65 (1110,988,739) Homestead (305,0140:,609) Disabled Persons (9,163Q, 125) Less Personal Property INominal Value Loss (167,688) Abatement Value Loss 0 Agricultural Value Loss (8,408,895) Freeport Inventory Value Loss (383,911) Pol I ution Control/Piro rated Absolute (171,193) Total Reduction to Values ($438.489,3102) Add: Estimated Minimum AIRB protested values 57,756,924 Incomplete Property 28,449,888 NET TAXABLE VALUE $3,575,307,295 ESTIMATED PROPERTY TAX COLLECTIONS: Net Taxable Value $3,575,307,295 Proposed Tax Rate per $100 Va I uaflo in $0.57 Estimated Total Tax Levy at 100% Coillection $20,379,252 Less Estimated 1% for i collectibles (203,793) ILess TIF Transfer (976,110) Less Debt Service Transfer (16,603,946) TOTAL ESTIMATED PROPERTY TAX COLLECTIONS(Operations) 99% $12,595,4013 % of Total Tax Rate TAX RATE DISTRIBUTION SCHEDULE: Tax Rate Distribution General Fund - Maintenance & Operations 601% $0.342406 Debt Service Fund 410% $0,227594 'TOTAL DISTRIBUTION OF' TAX RATE 100% $0.57,0100 100% Projected DISTRIBUTION OF ESTIMATED TAX REVENUE: Collection Collection Transfer to Debt Service Fund 7,580,0156 7,5810,056 General Fund - Maintenance & Operations 12,799,196 12,595,4103 TOTAL ESTIMATED TAX REVENUE $2,01,379,252 $20,175,459 CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Subject: PLANNING AND DEVELOPMENT Items to follow do not require a public hearing. No items for this category. Council Meeting Date: 8 -27 -2007 Agenda No. D.0 Department: City Secretary Presented by: Subject: PUBLIC WORKS No items for this category. CITY OF NORTH RICHLAND HILLS Council Meeting Date: 8 -27 -2007 Agenda No. E.0 Department: City Secretary Presented by: Subject: GENERAL ITEMS CITY OF NORTH RICHLAND HILLS Council Meeting Date: 8 -27 -2007 Agenda No. F.0 CITY OF NORTH RICHLAND HILLS Department: City Manager's Office Presented by: Karen Bostic Council Meeting Date: 8 -27 -2007 Agenda No. F.1 Subject: CN 2006 -067 Denial of 2006 Interim Rate Adjustment Proposed by Atmos Energy Corporation, Mid -Tex Division - Ordinance No. 2948 Atmos Energy Corporation, Mid -Tex filed its fourth surcharge request under the Gas Reliability Infrastructure Program ( "GRIP ") statue, seeking to add additional surcharges on top of the 2003, 2004 and 2005 GRIP surcharges already approved by the Railroad Commission. Council Suspended this request at the July 9, 2007 City Council meeting. Suspension gave the City 45 days beyond the stated effective date of the filing to review information to determine if the request was valid. Based on the review of Atmos' data, denial of the filing is now being recommended. The 2006 surcharges are $0.59 /month (average residential customers), $1.47 /month (average commercial customers), and $28.74 /month for industrial customers. If this fourth surcharge were to be approved, the total amount of surcharges resulting from the GRIP statute would be $1.68 /month for residential customers, $5.16 /month for commercial customers, and $180.86 /month for industrial customers. The proposed ordinance denies the 2006 surcharge request on the grounds that it does not comply with the law and is not reasonable. A consultant for the Atmos Cities Steering Committee (ACSC) has identified approximately $3.4 million in expenses included in the 2006 GRIP surcharge request that are inconsistent with the statute and/or Railroad Commission's order in GUD 9670. For example, the Company's surcharge request is based in part on inappropriate expenses related to furniture and office fixtures. The Commission excluded furniture expenses from the Atmos Mid -Tex GRIP surcharge in GUD 9670. The Company acknowledges this and has removed some of the furniture and fixture expense from the current filing. The filing offers no explanation why any furniture or fixture expense remains part of the GRIP surcharge. In addition, the consultant has identified expenses included in this surcharge request that occurred prior to 2006, and are thus ineligible for inclusion in the 2006 GRIP surcharge. Finally, Atmos Mid -Tex has just received a rate increase of approximately $5 million and should be collecting sufficient revenues to earn its allowed return without the necessity for a surcharge to recover incremental investment. The attached ordinance denies the Atmos GRIP filing, supports statutory reform of the Texas GRIP statute, finds that the meeting in which the ordinance is passed is open to the pubic and provides for notice of this ordinance to Atmos Energy Corp., Mid -Tex Division and the city's legislative delegation. Recommendation: Approve Ordinance No. 2948 760 It-A 211 101NI]I2I=124 [y =IL4IQW*Z1.3 AN ORDINANCE OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, DENYING THE REQUEST OF ATMOS ENERGY CORP., MID -TEX DIVISION, FOR AN ANNUAL GAS RELIABILITY INFRASTRUCTURE PROGRAM (GRIP) RATE INCREASE IN THIS MUNICIPALITY, AS A PART OF THE COMPANY'S STATEWIDE GAS UTILITY DISTRIBUTION SYSTEM; SUPPORTING STATUTORY REFORM OF THE TEXAS GRIP STATUTE, FINDING THAT THE MEETING AT WHICH THIS RESOLUTION IS PASSED IS OPEN TO THE PUBLIC; AND PROVIDING FOR NOTICE OF THIS RESOLUTION TO ATMOS ENERGY CORP., MID -TEX DIVISION AND THE CITY'S LEGISLATIVE DELEGATION. WHEREAS, the City of North Richland Hills, Texas ( "City ") is a gas utility customer of Atmos Energy Corp., Mid -Tex Division ( "Atmos Mid -Tex" or "the Company "), and a regulatory authority with an interest in the rates and charges of Atmos Mid -Tex; and WHEREAS, Atmos Mid -Tex made filings with the City and the Railroad Commission of Texas ( "Railroad Commission ") on or about May 31, 2007, proposing to implement interim rate adjustments ( "GRIP rate increases "), pursuant to Texas Utilities Code § 104.301, on all customers served by Atmos Mid - Tex, effective July 30, 2007; and WHEREAS, the Gas Reliability Infrastructure Program (GRIP) statute approved in the 2003 Regular Session of the 78th Legislature changes 100 years of Texas law and allows a natural gas utility to implement annual surcharges for increases in investment without having to account for the offsetting decreases in costs or increases in revenue experienced by the utility; and WHEREAS, Texas is the only state out of the twelve states served by Atmos that has a GRIP statute that allows for piecemeal recovery for any change to invested capital; and WHEREAS, Atmos has implemented four GRIP surcharges and collected more than $20 million in GRIP surcharges from customers since the utility acquired the TXU Gas system in 2004; WHEREAS, the City supports the statutory reform of the GRIP statute to ensure fairness to ratepayers and to eliminate piecemeal recovery for any change to invested capital; and WHEREAS, Atmos Mid -Tex was recently granted a rate increase as a result of its filing in GUD No. 9670, in which the Final Order was only signed on March 29, 2007; and WHEREAS, in GUD No. 9670, it was determined that Atmos Mid -Tex had inappropriately included certain expenditures in its prior GRIP rate increases for rate years 2003, 2004, and 2005; and WHEREAS, the City, as a regulatory authority, suspended the July 30, 2007, effective date to examine this latest GRIP filing to determine its compliance with the Texas Utilities Code and Railroad Commission final order in the most recent Atmos Mid -Tex rate case; and WHEREAS, the City has joined with other cities to review the Company's filing, said coalition being known as Atmos Cities Steering Committee ( "ACSC " ); WHEREAS, the consultant hired by Steering Committee has reviewed the GRIP surcharge application and has issued a final report finding that the Company has included millions of dollars of expenses in the current GRIP surcharge that are inconsistent with the Texas Utilities Code and Railroad Commission final order in the most recent Atmos Mid -Tex rate case and not related to ensuring the safety and reliability of the system; WHEREAS, counsel for the Steering Committee, upon review of the Company's filing and the consultant's report, recommends finding that the Company's proposal is unjustified and unreasonable; and WHEREAS, ratepayers of Atmos Mid -Tex, including the City and its residents, will be adversely impacted by the proposed GRIP rate increases. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL, CITY OF NORTH RICHLAND HILLS, TEXAS: SECTION 1. That the Company's GRIP rate increase request is found to be unreasonable and inconsistent with the Texas Utilities Code and Railroad Commission final order in GUD 9670, Atmos Mid -Tex most recent rate case, and is therefore denied in all respects. SECTION 2. This Resolution shall become effective immediately from and after its passage, as the law and charter in such cases provide. SECTION 3. That the City hereby advocates statutory reform of the Texas GRIP statute to ensure fairness to ratepayers and to eliminate piecemeal recovery for any change to invested recovery. SECTION 4. That the City calls upon its state representatives and senator to support legislation in the 81St Regular Session of the Texas Legislature that would reform the Texas GRIP statute to ensure fairness for ratepayers and eliminate piecemeal recovery for any changes to invested capital. SECTION 5. That it is hereby officially found and determined that the meeting at which this Resolution is passed is open to the public as required by law and that public notice of the time, place and purpose of said meeting was given as required. SECTION 6. A copy of this Resolution, constituting final action on the Company's application, be forwarded to the following: Charles R. Yarbrough, II Atmos Energy Corporation 5420 LBJ Freeway, Suite 1800 Dallas, Texas 75240 Lloyd Gosselink, et. al. c/o Geoffrey Gay P.O. Box 1725 Austin, Texas 78767 -1725 SECTION 7. A copy of the ordinance shall be sent to the elected lawmakers representing the City's interests in the Texas House and Senate. PASSED AND APPROVED on this the 27th day of August, 2007. CITY OF NORTH RICHLAND HILLS ATTEST: Patricia Hutson, City Secretary Oscar Trevino, Mayor APPROVED AS TO FORM AND LEGALITY: George A. Staples, City Attorney it ;1 =10l►1=1llrilateIK0]24 kd=1124k6 Karen Bostic, Managing Director CITY OF NORTH RICHLAND HILLS Department: Police Department Presented by: Jimmy Perdue Council Meeting Date: 8 -27 -2007 Agenda No. F.2 Subject: CN 2007 -074 2008 Selective Traffic Enforcement Program Grant (FY 2008 STEP Grant Agreement) - Resolution No. 2007 -050 The Texas Department of Transportation (TxDCT) provides grant programs to support the mission of the Selective Traffic Enforcement Program (STEP) which is to reduce the number and severity of vehicular crashes throughout the state. The Police Department is currently participating in a STEPfWAVE grant through TxDCT which provided for extra DWI enforcement hours during selected time periods, Christmas, Spring Break, Fourth of July, and Labor Day. The Police Department also participated in the Click It or Ticket campaign during the Memorial Day week. Activity from these grants has generated 317 additional traffic safety enforcement hours, and the City of North Richland Hills has been reimbursed $15,088.74. Under the 2008 STEP Program, grant funds provide extra DWI enforcement and extra occupant protection law enforcement for the entire fiscal year 2008. The North Richland Hills Police Department has received notification from TxDCT that grant funds have been allocated under the 2008 STEP program to reimburse for overtime hours incurred while conducting enforcement. Participation in this grant will allow the Police Department to target two violations of the law that unquestionably cause our citizens injury and property damage. To receive the grant funds, the City of North Richland Hills is required to enter into a grant agreement with TxDCT. The City of North Richland Hills agrees to fund overtime for 876 additional hours targeting impaired drivers and 350 additional hours targeting occupant protection throughout the fiscal year. Based on the projected 876 additional man -hours for impaired driving enforcement, this provides a target of 146 additional arrests made for DWI in fiscal year 2008. Based on the projected 350 additional man - hours for occupant protection enforcement, this provides a target of 1,050 citations for occupant protection related offenses. The Police Department will seek reimbursement from TxDCT at the conclusion of each month for overtime and mileage costs incurred each month. The maximum amount of the grant is $59,382.24. The City's matching amount will primarily be in -kind and cover overall administrative costs for the program, vehicle costs, etc. The Grant becomes effective on the date of final signature of both parties and ends on September 30, 2008, unless terminated or otherwise modified. The attached resolution will authorize the City Manager to enter into the grant agreement with the Texas Department of Transportation. Recommendation: To approve Resolution No. 2007 -050 RESOLUTION NO. 2007 -050 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: WHEREAS, The City of North Richland Hills, Texas possesses legal authority to apply for the 2008 STEP Program Grant and make appointments for the conduct of business relative to the Grant; and WHEREAS, The City Council of North Richland Hills finds it in the best interest of the citizens of North Richland Hills to provide for additional enforcement hours targeting impaired drivers and occupant protection law enforcement October 2007 through September 2008. WHEREAS, The City Council of North Richland Hills finds that these two violations of the law unquestionably cause our citizens injury and property damage. WHEREAS, The City Council of North Richland Hills agrees to fund overtime hours to provide for this additional enforcement during fiscal year 2008, in anticipation of reimbursement from the Texas Department of Transportation as set forth in the Grant Agreement. WHEREAS, The City Council of North Richland Hills designates City Manager Larry Cunningham as the grantee's authorized official. The authorized official is given the power to apply for, accept, reject, alter or terminate the grant on behalf of the applicant agency. NOW THEREFORE BE IT RESOLVED, that the City Council of North Richland Hills approves submission of the grant for the 2008 STEP program. PASSED AND APPROVED this the 27th day of August, 2007. CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: George A. Staples, City Attorney APPROVED AS TO CONTENT: Jimmy Perdue, Chief of Police Alf Texas Department of Transportation August 9, 20,07 GONTACr; Foil Woilh Owde Traffir, Sammy 20018 Selective! Traffic Enforcement Program (STEP) Grants Chief Jimmy Perdue North Richland Hills, Police Department 7301 NE Loop 82,0 North Richland Hillls, Texas 76180 Dear Chief Perdue � Congratulations! "our agency has been awarded a 20,018 STE P-Cornp reheinsive Grant, The funding for this Grant is as follows: Federal Funds t 6�al --MEN= �inq Fu $i59,382'.24 $4' "'68 .......... The agreement between the Texas Department of TiransportaUon (TxDOT) and your City must be executed by October 1, 200,7. If you have any questions concerning the grant, please contact Kathy Neely at (817) 370-6626 or me at (817) 370-661& Sincerely, Ile Joel H. Mallard Traffic Safety Specialist An Equal Opporraniry Frinp(oyer 'ity of North Ri�.-hland STEE, ccmiprediursivr 200F. ,rF.XAS TRAFFIC SAFETY PROGRAM GRANT AGREEMENT Contract Number: 588EGF60,87 Charge Number: 9PT05TID1 PIN: 17560051942,008 Project Year: Ist TI I E STATE OF TEXAS THE COIU NT Y OF TRAVTS THIS AGREEMENT IS MADE IBY and between ffie State of Texas,, acting by and through the Texas Department of Transportation, hereinafter called the Department and the, City apt f Narth Richland I lills hereinafter called the Subgrantee, and becomes effective then fully execiated by both parties. For the purpose of this agreement, the Subgrantec is designated as a(n) Local Govemment AUTHORITY: Texas Transportation Code, Chapter 7'23„ the Traffic Safety Act of 1967, and the Highway Safety Performance Plan for the Fiscal Year 2008, ProjectTitle: STEP Comprehensive Grant Period: This Grant becomes' cffcctive on I W01/2%7 or on the date of final signature of both parties, whichever is later, and ends on 093012008 unless terminated or otherwise modified. Total Awarded: $73,631.92 Amount Eligible for Reimbursement: $59,382,24 Match Amount: $14,2491.68 Program Income $0,00 7X DOT 1 8 / 2 2, / I) () (), 7 Y If North R:.chland STEP Cmnprchc-nsive 200E TEXAS TRAFFI SAFETV PROGRAM 'GRANT AGREEIMENT The signatory of the Subgranice hereby represents and warrants that she)be is an officer of the organisation for which sheihe has executed this agreement anti that she/he has full and complete authority to enter into this agreement on behalf of the organization, THE SLJ13GRANTEE THE STATE OF TEXAS City of North Richland Ifil Is Executed for the Executive Director and �[Lcgal Name of Agency] By: [Authorized Signaturej (Name] [Tide] Date: Under the authority of Ordinance or Resolution Number (for local government): Approved for (he I exas Transportation Commission for the purpose and effect of activating andJor carrying out orders, established policies or work- programs approved and authorized by the Texas Transportation Conarnission By. [District Engineer Texas Department of Transportation] [Name I jiflej Date: By: I Resolution Nu mberl Director, Traffic Operations Division Department of Transportation (Not requ i red for local project grants under 5100,000,0110) Date: rxl)ll)lr 2 &/22/20 " , L y Of NO r t 11 R i : ) 1,� Ild STEP CDmprehengive PROGRAM ELEMENT SELECTION YEAR LONG Z DWI uwi: oriving while Intoxicated ❑ ,Speed :Spieedt Speed Enforcement a'? 02z Occupant Protection (Safety Belt L Child Safety Seatj ❑ ITC' ZT12: Intersection Traffic Control WAVE ❑ Dwi Jurisdiction 'wide (DWI enforcement effort must be focused at Locations where there is an over - representation of alcohol - related crashes and/or DWI arrests) F1 Speed Ji-irisdictiork wide (Speed should be focused on areas where there is at least a !Dot noncompliance with the posted speed G emit w ar)d/or a higher nuadwr cat speed-related Crd5hes ❑ OF JuTi;5diction wide CM V ❑ Speed, OP, CMV: Commercial Motor vehicle; 17MV: Hazardou5 Moving and FMV Violations 2008 TXDOT 3 8 iL-y of NQrLh kicJiicmd q'rF,? Conpxehensive 2,")I;)8 GENERAL INFORMATION Project Title STEP Camprehensive How many years has your organization received funding for this project? This will b our first ;year. organization Address North Riz-hland Hills Police Department 'CiCQ N E Lo �p 1320 Mailing Address (if different) Project Director Contact InfoxmationArithony Maranto TX-DQT 4 12/22/2G07 M r I h R 1 ci I STEP � w 11,00 PROPOSING AGENCY AUTHENTICATION IZ T d.he folLcwing person has authorized the submittal of this propcm.Ral. Name Laxry "ritLc city Manager Add re, Lis 7 K1 C4 L Loop 820 City C4crth Kichland hills StatL- Zip Code Phone Number 817-427-6007 Fax Number E-mail address Lcunrjingham@nrhtx. ccm TXD0T 5 8/22/2007 Lty of' SITFP CQmprehens�ve, 2008 ,I,Ep-mS, 'CONDITIONS AND RESPONSIBILITIES How often do you plan to submit Performance RePOrtS? munchly How often do you plan to submit KYR's? M,�nL It I y Terzin and CQnditioms z i Agree with. the Terms and Conditions, RaSportaibilitiea Of the Subgrantee E i Agree with the Responsibilities Of the SubGrantee Reopcn0ibilities of the Department Ell Agree with the Respon$ibilitie8 Of the Department.. 3r 22 /?W07 6 TMOT of tq-7rtj,� Rich[and STEP TexasTriaffic Safety Program GRANT AGRFEMENT GENERAL TERMS AND CONDITIONS ARTICLE I. COMPLIANCE WITH LAWS The Subgratitee shall comply with all federal, state, and local laws, statutes, codes, ordinances, r0es and regulations, and the orders and decree's of any courts or' dministrative bodies or tribunals in any matter affecting the performance of this Agreement, including, without [imitation, workers' cornpensation laws, minimun, and maximum salary and wage statute-, and regulations, nondiscrimination laws and regulations, and licensing laws and regulations. When required, the Subgrankee shall ftu-nish the Department with satisfactory proof of its compliance therewith. ARTICLE 2. STANDARD ASSURANCES The Subg=tec hereby assures and certifies that it will comply with the regulations, policies, guidclines, and requirements, including 49 CFR (Code of Federal Regulations), Par( 18; 49 CFR, Part 19 (OMB [Office of Management .and Budget] Circular A -1101) OMB Circular A-87; 0MR Circular A-102; OMB ,Circular A•21; 'OMB Circular A-122; oMB Circular A-I 33 and the'Traffic Safety Program Manual, as, they relate to the application, acceptance, and use of federal or state funds, for this project. Also, the Subgrantee assures and certifies that: A. it possesses legal authority to apply for the grant; and that a resolution, motion, or '.similar action has been duly adopted or passed as an official act of the applicant's governing body, authorizing the filing of the application, including all understandings and assurances contained therein, and directing and aulborizing the person identified as the official representative of the applicant to act in connection with the application and w provide such additional information as may be required, B , It and its subcontractors will comply with Title VI of the Civil Rights Act uf 1964 (public Law 98- 352) person shall discriminate, on the grounds of ,, as arnendied, and in accordance with that Act, no piers iuciv, cedar, 5cn,, nutional origin, age, religion, or disability. C. it will comply with rcoluirements of the provisions of the Uniform Relocation Assistance and Real Property Acquisitions Act of 11970, as arncnded; 42 uSC (United States Code) §§4601 et seq.; and United 'States Department of rransportation (USDOT) regulations, "Uniform Relocation and Real Property Acquisition for Federal and Federally Assisted Programs," 49 Cl,R, Pail 24, which provide for fair and equitable treatment of persons displaced as a result of federal and federally assisted progran1s. D, it will comply with the provisions cif the Hatch political Activity Act, which limits; the political activity of employees. (See also Article 25, Lobbying Certification.) F. it will comply with the federal Fair Labor Standards Act's minimum wage and overtime requirements for employees performing project work. to prohibit employees from using their positions for a purpose that is Of F. it s will establish '.safeguards others, gives the a?pearanct of being motivated by a desire Car Private gain for themselves 0 r particularly those with whom they have family, business, or Other ties- 200P G. it will give the Depailivent the access to and the right to examine all records, books, papers, or docurnents related to this Grant Agreement.. H. it will comply with all requirements imposed Iby the Department concerning special requirements of law, program requirements, and other administrative requirements. I. it recognises that many federal and state laws imposing environmental and resource conservation requirements may apply to this Grant Agreement. Some, but not all, of the major federal laws that 8/22/�00' <[)01 ity ref N,,.rrt.h R!(:hland STLL' Comprchcnc3 ve may affect the project Include: the National Environmental Policy Act of 1969, as arriended, 42 USC §§4321 etseq.; the Cleankir Act, as amended, 42 USC §§74,01 et!.,;eq. and sections of 29 USC; the Federal Water Poill4tiou Control Act, as amended, 33 USC §§ 1251 et seq,-, [fie Resource Conservation and Recovery Act, as amended, 42 USC §§6901 at seq.; and the Comprehensive Environmental Response, Compensation, and Liability Act, as amended, 42 TJSC §1396()l etseq. The Subgrantoc rtk,o, recto al agencies gnize5 that, the U.S. Environmental Protection Agency, USDOT, and other federal have issued, and in the future are expected to issue, regulation, guidelines, standards, orders, directives, or other requirements that may affect this Project, 7hus, it agrees to comply, and assures the compliance of each contractor and each subcontractor, with any such federal requirements as the federal government may now or in the future promulgatc, 1, it will comply with the flood insurance purchase requirements of Section 102(a) of the Flood Uisader Protection Act of 1973, 42 USC §4012a(a), Section 102(a) requires, on and after March 2, ['975, the purchase of flood insurance in communities where such insurance is available as a condition for the receipt of any federal financial assistance for construction or acquisition purposes for use in any area that has been identified by the Secretary of the Department of Housing and Urban Development as an area having special flood hazards. The phrase "federal financial assistance" includes any form of loan, grant, guaranty, insurance payment, rebate, subsidy, disaster assistance loan or grant, or any form of direct or indirect federal assistance, K. It will assist the Department in its compliame with Section 1106 of the National Historic Preservation Act of 1.966 as arnended (16 USC 47'0 et seq.), Executive Order 11593, and the Antiquifivs, Code of Texas (National R dSOUrc es Code, Chapter 1.91). L. it will comply with Chapter 573 of the Texas Government Code by ensuring that no officer., employee, or member of the Subgrintec's. governing board or the Subgrantee's subcontractors shall vote or confirm the employment of any Person related within the seciond degree of affinity or third degree by consanguinity to tiny member of the goveming body or to any other officer or employee authorized to employ orsuporviw such person. 'This prohibition shall not prohibit the employment of' a person described in Section 573.062 of the Texas Government Code. N1. it will ensure that all information collected, assembled, or maintained by the applicant relative to this project shall be available to the public during normal business hours in compliance with Chapter 552 of the 1'exkjs ciovernmetu Code, unless otherwise expressly provided by law. N, if applicable, it will comply with Chapter 551 of the Texas Government Code, which requires all regular, spc6al, or called meetings of governmental bodies to be open to the public, except as otherwise provided by law or specifically permitted in the Texas Constitution. ARTICLE 3. CONI'PENSATION A. The method of paynient for this Agreement will be based On actual costs incurred Up to and not to exceed the limits specified in ft Project Budget. The amount in-cluded in the Project Budget will be deemed to be an estimate only and a higher amount can be reimbursed, subij act to the conditions specified in paragraph B hereunder. Ifthe Project Budget specifies that costs are based on a specific rate, per-unit cost, or other method of payment, reimbursement will be biased on the specified method- B. All payments will be made in accordance with the Project Budget. The Subgrantec's expenditures may overran a budget category (1, 11, of 111) in the approved Project y ii, Budget without a grant (budget) amendment, as long as the overrun does note a total 'of fl 'e (3) percent per year of the maximum amount eligible for reimbursement (TxDOT') in the attached Project Budget for the current fiscal yui This overrun must be ofd set by an equivalent undicrrun elsewhere in the Project Budget. )0138 R / 21 l' '200 XT7OT i-.y of Nortil FtChLand s,7 F, P C n rr. p rc h r.-,,n 9 'a v e- If the overrun is five �(5) percent or less, the Subgranitc must provide written notification to tile Deparmient, through the TxDOT Electronic Grants Management System (cGrants) messaging system, prior to the Request for Reimbursement being approved. The notification Trust indicate the amount, the percent over, and the specific reason(s) for the overrun. Any uvcrrLU1 of more than five (5) percent of the amount eligible for reimbursement (TxD07) in the attached Project Budget requires an amendmient of this Grant Agreement. Tlic maximum amount eligible for reirribUTSement shall not be increased above (tie Grand Total ,rxDoT Amount in the approved Project Budget, unle&s this Grant Agreement is amended, as described in Article :5 of this Agreement. For Seloctive TrafFic. Enforcement Program (STEP) grants only: In the Project Budget, 'Subgrantees arc not allowed to use underran funds from the TxDOT amount ofi(I 00) Salaries, SUbcategories A, "Enforcement," or B, "'PI &E Activities," to exceed the TxDOT amount listed in Subcategory C, "Other." Alin, Subgrantees arc not allowed 10 use Underrun funds from the TxD10T amount of ,(100) Salaries, Subcategories A, "'Enforcement," or C, "Other," to exceed the TKDOT .amount listed in Subcategory B, " "PIXIE Activities." The TxDOT amount for Subcategory B, "PT&E Activities," or C, "Other," can only be exceeded within the 5 percent flexibility, with undarrun funds from Budget Categories IT or III. C. To be eligible for reimbursement under this Agreement, a cost MUSt be incurred in accordance with the Project Budget, within the time frame specified in the 'Grant Period of this Giant Agrcement, attributable to work covered by this Agreement, and which has been completed in a manner satisfactory and acceptable to the Department. D. Federal or TxDOT funds cannot supplant (replace) funds from any other sources. The tenn "'supplanting," refers to the use of federal or TxDOT funds to support personnel or an activity already supported by local or state funds, R'. Payment of costs ineurred under this Agraement is further governed by one of the following cost principles, as appropriate, outlined in the Federal Office of Management and Budget (OMB) Circulars! • A-2 1, Cost Principles, for institutions of Higher Education; • A-87, Cost Principles for State, Local, and Indian Tribal Governments; or, • A-122, Cost Principles for Nonprofit Organizations. F. The Subgraritee agrees to submit monthly or quarterly Requests for Reirnhurs'ement, as designated in this Grant Agreement, within thirty (30) days after the end of the billing period. 'The Request for Reimbursement and appropriate supporting documentation must be submitted through Grants. G . The Subgrantee agrees to submit the final Request for Reimbursement tindcr this Agreement within forty-five 1(45) days of the end of the grant period. 14. The Department will exercise good faith to make payments within thirty (30) days ofrelceip( of properly prepared and documcmied Requests for Reimbursement. Payments, however, are contingent upon the availability of appropriated funds. L Project agreeinerils supported with federal or Tx DOT funds are limited W the length of this Grant Period specified in this Grant Agreement. Ifthe Department determines that the project has demonstrated merit or has potential long-range benefits, the Subgrantee may apply for funding assistance beyond the initial Agreement period. Preference for funding will be given to those projects for which the Subgrantee has assumed soane cost sharing, those which propose to assume the largest percentage 0 C qUbsequent project costs, and those which have demonstrated plerfunriance that is acceptable to the Department, XDOT 9 8 122 � 2 007 ity of North Ri.r.hidnd S'PEP Comprehensive ARTICLE 4. LIMITATION OF LIABILITY payment of costs incurred hereunder is contingent upon the availability of fiinds. If at any time during this Grant Period, the Department determines that there is insufficient funding to continue the project, the Mpartment shall so noti ty, the Subgrantee, giving notice of intent to terminate this Agreement, as specified in Article I I of this Agreement. If at the end of a federal fiscal year, the Department determines that there is sufficient funding and perforniance to continue the project, the Department may so notify the Sub grant" to continue this agreement, ARTICLE 5. AMENDMENTS This Agreement may be amended prior to its expiration by mutual written consent of both parties, utilizing [Ile Gnont Agreement Amendment in eGrants. Any amendment must be executed by the parties within the Grant Period, as specified in this Grant Agreement. ARTICLE 6. ADDUFIONAL WORK AND CHANGES IN WORK If the Subgrantee is of the opinion that any assigned work is beyond the scope of this Agrccnient and constitutes additional work, the Subgranteo shall promptly noti6r the Department in writing through cGrantssysturn messaging. If the Department finds that such work does constitute additional work, the Department shall so advise the Subgrantee and a written amendment to this Agreement will be executed according to Article 5, Amendments, to provide compensation for doing this work on the same basis as the original work. If performance of the additional work will cause the maximum amount payable to be exceeded, the work will not be performed before a written grant amendment is executed. If the Subgran(oc has submitted work in accordance with the terms of this Agreement but the Department requests changes to the completed work or pans thereof which involve changes to the original scope of services or character of work under this Agreement, the Subgrantec shall inake such revisions as requested and directed by the Department. This will be considered as additional work and will be paid for as specified in this Article. If the Subgrantee submits work that does not comply with the terms of this Agreement, the Department shall instruct the Subgrantee to make Such revisions as are necessary to bring the work into compliance with this Agreement, No additional compensation shall be paid for this work. The Subgrantee shall make re,4sions to the work authorized in this Agreement, which are necessary to correct errors or omissions appearing therein, when required to do '.so by the Department. No additional compensation shall be paid for this work. The Department shall not The responsible for actions by the 15ubgrantee or any costs incurred by the Subgrantee relating to additional work not directly associated with or prim to the execution of an amendment. ARTICLE I. REPORTING AND MONITORING Not later than thirty (30) days after The lend of each reporting period, the Subgranice shall submit a performance report through e0mrits. For short-term projects, only one report submitted by the Subgrantee at the end of the project may be required. For longer projects, theSubgrantce will submit reports at least quarterly and preferably monthly, The frequency of the performance reports is cs3abhsh0d through negotiation between the Subgrantee and the program or project manager. For Selective Traffic Enforcement Programs (STEPs), performance reports must be submitted monthly, ;� 0 ()'8 The performance report will include, as a minimum: (1) a comparison of actual accomplishments to the objectives established for the period, (2) reasons why established objectives and perf6rmancc measures were not met, if appropriate, and (3) other pertinent information, including, when appropriate, an analysis and explanation of cost unideff uns, overruns, or high unit costs. X17)()T 1 1".) 8/ 2 2 / 20 G i-.y of N(arth Richl iIrld STEP Comprehensa-ve 2006 The Subgrantot shall submit the Final Performance Report through eGrants within thirty 1(30) days after completion of the grant. The Subgmntcc!shall promptly advise the Department in writing, tbmugh cGrants messaging, of events that will have a significant impact upon this Agreement, including: Problerns, delays, or adverse conditions, including a change of project director or other changes in Subgrantee personnel, that will materially affect the ability toattain objectives and performance measures, prevent the meeting of time schedules and objectives, or preclude the attainment of project objectives or performance measures by the established time periods. 'This disclosure shall be accompanied by a statement of the action taken or contemplated and any Departrwrit or federal assistance needed to wo%olve the situation. Favorable developments or events that enable meeting time schedules and objectives sooner than anticipated or achieving greater performance iineasure output than originally projected. ARTICLE 9. RECORDS The Subgrantee agrees to maintain all reports, documents, papers, accounting records, books, and other evidence pertaining to costs incurredand work performed hereunder, (hereinafter called the records), and shall make such records available at its office, for the time period authorized within the Gran( Pierimi, as specified in this Grant Agreement. The Slubgrantee further agrees to retain said records for four (4) years from the date of final payment under this Agreement, until completion of all audits, or until pending litigation has been completely and fully resolved, whichever occurs last. Duly aothorized representatives of the Department, the USDOT, the office of the Trispector General, Texas State Auditor, and the ConiptrollLr General shall have access to the records. This right of access is not limited to the four (4) year period but shall last. as long as the records are retained. ARTICLE 9. INDEMNIFICATION To the extent permitted by law, the Subgrantee, if other than a Sovctrurwrif entity, shall indemnify, bold, and save harmless the Depaftment and its officers and employees from all claims and liability due to the acts or orrdissions of the Subgmn(w, its agents, or employees. The Subgramcc also agrcc,s, to the extent pen - nitted by law, to indemnify, hold, and save harmless the Department from any and all expenses, including but not limited to attorney fee$, all court costs and awards for damages incurred by the Department in litigation or otherwise resisting such claims or liabilities as a result of any activities of the Subgrantee, its agents, or employees. FLM[ler, to the extent permitted by Law, the Subgrantee, if other than a government entity, agrees to protect, indemnify, and save haFraless the Department from and against all clauses, demands, and causes of action of every kind and character brought by any employee of the Subgrantee against the Department due to personal injuries or death to such employee resulting from any alleged negligent act, by either commission or omission on the pan of the Subgrantee. If the Subgrantet is a government entity, both parties to this Agreement agree that no party is an agent, servant, or employee of the other party and each pairty agrees it is respunsible, for its individual acts and deeds, as well as the acts and deeds of its contractors, employees, representatives, and agents. ARTICLE 10. DISPUTES AND REMEDIES This Agreement supersedes any prior oral or wn(ton agreements, If a conflict arises betwcon. this Agreement and the t'raff'ic 'Safety Program Manual, this Agreement shall govern, The Subgrantee shall be responsible for the settlement of all contractual and administrative issues arising out of procurement made by the—Subgrantze in support of Agreement work, XUL1111 11 8/22/2007 it ,it: No r1 ?,ichLand S'FF-P Compreheru:sivfu 2008 Disputes concern,ing perfarrinance or payment shall be submitted to the Depamnent, for settlement, with the Executive Director or his or her designee acting as final re&rec. ARTICLE 1111. TERMINATION This Agreeincrit shall remain in effect until the Subgrantee has satisfactorily completed all services and obligations described herein and these have been accepted by the Departrnent, =less,, • This Agreement is terminated in writing with the inutual consent of both parties; or * There is awTitten thirty (310) day notice by either party; or • The Department detennInes that the performance of the project is not in the best interest of the Department amid inforins the 'Subgrantee that the project is terminated immediately. The Departnient shall compensate the Subgtantee for only those eligible expenses incuff ed during the Grant Period specified in this Grant Agreement which are directly attributable to the completed portion of the work covered by this Agreement, provided that the work has been completed in a manner satisfactory and acceptable to the Department. The Subgrantce shall not incur nor be reimbursed for any new obligations after the effective date of termination, ARTICLE 12. INSPECTION OF WORK The Department and, when federal funds are involved. the US DOT, or any authorized represcritativc thereof, have the Fight at all reasonable times to inspect or otherwise evaluate the work performed or being performed hereunder and the premises in which it is being performed. If any inspection or evaluation is made on the premises of the Subgraracc or its subcontractor, the Subgrantee shall provide and require its subcontractor to provide all reasonable facilities and assistance for the safety and convenience of the inspectors in the performance of their duties. All inspections and evaluations shall be performed in such a manner as will not unduly delay the work. ARTICLE 13. AUDIT The Subgrantec shall comply with the requirements of the Single Audit Act or 1984, Public Law (PL) 198- 502, ensuring that the single audit report includes the coverage stipulated in 'OMB Circular A -133, "Audits of States, Lx)cai Govtrnments, and Other Non-Profit Organieutioris." The state auditor inay conduct an audit at investigation of any entity receiving funds from the site directly under this Agreement or indirectly through asubcontract under this Agreement. Acceptance of funds directly under this Agreement or indirectly through a subcontract under this Agreement acts as acceptance of the authority of theState Auditor, under the direction of the legislative audit committee, to conduct an audit or investigation in connection with those funds. ARTICLE 14. SUBCONTRACTS The Suitgraintec shall not enter into any subcontract with individuals or organizations not a part of the SUbgrantee's organization without prior written concurrence, through eGrants systern messaging, with the subcontract by the Department. Subcontracts shall contain all required provisions of this Agreement. No subcontract will relieve the Subgrantec of its responsibility under this Agreement. ARTICLE 15. GRATUITIES Texas Transportation Cormnaission policy i-nandates that employees of the Department shall not accept any benefit, gift, or favor ftern any person doing business with or who, reasonably speaking, may do business with the Department tinder this Agreement. The only exeeptions allowed are ordinary business lunches and itens that have received the advanced written approval of the Department's Executive Director. "+ 12 �/22?200'1 Ity or Nor1th Richland STEP Coniprehen8Svp. 2 0 i,; Any person doing business with orwho reasonably speaking may do business with the Department under this Agreement may not make any offer of bonefits, gifts, or favors to Department employees, except as montioned here above. Failure oil the pan of the Subgrantee to adhere to this policy may result in termination of this Agreement. ARTICLE 16. NONCOLLUSION The SUbgrantee warrants that it has not employed or retained any company or person, other than a bona d that it a% not fide employee working solely for the Subgrantec, to solicit or secure this Agreement, an hors paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration 'Contingent LPQn or resulting from the award or making of1his Agreement, Ifthe Subgrantec breaches or violates this warranty, the Department shall have the right to annul this Agreement without liability or, in its discretion, to deduct from the Agr=ment price or consideration, or otherwise recover the full amount ofskich fuc, commission, brokerage fee, contingent fee, or gift, ARTICLE 17. CONFIACT OF INTEREST The Subgrantec represents that it or its employees have no conflict of interest that would in any way interfere with its or its employees' Performance or which in any way conflicts with the interests of the Department. The SUbgrantuc shall exercise reasonable care and diligence to prevent any actions or conditions that could result in a conflict with the Department 's interests. ARTICLE I& SUBGRAXTEE'S RESOURCES The Slubgrantec certifies that it presently has adequate qualified personnel in its employment to perform the work required under this Agreement, or will be able to obtain such personnel frorn sources other than the Department. All employees of the Subgrantec shall have such knowledge and experience as will enable there to perform the duties assigned to their, Any employee, of the Subgrantcv who, in the opinion of the Lkpartintent, is incornpetont or whose conduct becomes detrimental to the work, shall immediately be removed from association with the project. Unless otherwise spocified, the Subgranice shall furnish all equipment, materials, supplies, and other resources required to perform the wort ARTICLE 19. PROICUREMF NT AND PROPERTY MANAGFMENT The Subgrantec shall establish and administer a system to procure, control, protect, preserve, use, maintain, and dispose of any property furnished to it by the Department or purchased pursuant to this Agreement in accordance with its own property management procedures, provided that the Procedure.-; We not in conflict with the Department's property management procedures or property management standards, and federal standards, as appropriate, in: • 49 CFR, Part 19, *'Uniform Administrative Requirements for Cirants and Cooperative Agreements to State and Luca] Governments;"' or 0 419 CFR, Part 19 (OMB Circular A-1 10), "Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations." ARTICLE 210, OWNERSHIP OF DOCUMENTS AND JNTFIJ,ECTUAI. PROPERTY Upon completian or termination of this Grant Agreement, whether for cause or at the convenience of the parties hercto, all finished or unfinished documents, data, stud'ies, surveys, reports, maps, drawings, modoL, photographs, etc, prepared by the Subgrantee, and equipment and supplies purchased with grant X00T 13 8/22/2007 t y a f N()rt h B-1ch I a rid STEP Comprehensive funds shall, at the option of the Department, become the property of the Depat-Imcrit All sketches, Photographs, calculations,, and other data prepared under this Agreement shall be made available, upon request, to the Department without restriction or limitation of their further use, A. Intellectual property consists of copyrights, patents, and any other form of intellectual property rights covering any data bases, software, inventions, training martuals, systems design, or other proprietary information in any form or medium, B :417 eights to Department. The Department shall own all or the rights (including copyrights, copyright EIPPlicatiorls, copyright renewals, and copyright extensions), title and interests in and toalldata, and other information developed under this contract and versions thereof unless otherwise agreed to in writing that there will be joint ownership, C. All rikhisio Subgeaniee. Classes and materials initially developed by the SUbgranice without any type of funding or resource assistance from the Department retrain the Subgrantee 's intellectual property, For these classes and materials, the Department payment is: limited to payment for attendance at classes. ARTICLE 21. SUCCESSORS AND ASSIGNS The Department and the Subgrantee each binds itsell', tits successors, executors, assigns, and administrators to the other party to this Agreement and to the successors, executors, assigns, and administrators of such other party in respect to all covenants of this Agreement. The Subgrantee shall not assign, sublet, or transfer interest and obligations in this AgreLment without written consent of the Department. through eGrants messaging. ARTICLE 22. CIVIL RICHTS C MP1,1ANCE A- Compliance with regulatiorm The Subgrantee shall comply with the regulations relative to nondiscrimination in federally assisted programs of the TJSDOT 49 CFR, Part 2]„ 23 M, Subchapter C, and 41 CFI, Parts 60-74, as they may be amended periodically (hereinafter referred to as the Regulations). The Subgrantee agrees to comply with Executive Order 11246, entitled "Equal Employment Opportunity," as amended by Executive Order 11375 and as supplemented by the U. S, Department or Labor regulations (41 CFR, Part 160), B Nondiscrimination: The Subgrantee, with regard to the work performed dwing the period of this Agreement, shall not idiscri minate on the grounds of race, color, sex, national origin, age, religion, or dfiiability in the selection and retention of subcontractors, including procurements of materials and leases of equipment. C'. Solicitations for subcontracts, including procurement of materials and equipment ' in, all solicitations either by competitive bidding or negotiation made by the Subgmntee for work to be performed under ia subcontract, including procuretinLnts, ofmataials and leases of equipment, each potential subcontractor or Supplier shall be notified by the Subgrantee Or the S0grantec's obligations under this Agreement and the regulations relative to nondiscrimination an the grounds of race, color, sex, national origin, age. religion, or disability, D. Nformation and reports: The Subgrantee !shall provide all information and reports required by the regulutiluns, or directives issued pursuant thereto, and shall permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by (he Department or the USDOT to be pertinent to ascertain compliance with such regulations or directives. Where any information required of the Subgrantee is in the exclusive possession of another who fails or refuses to furnish this information, the Subgranl= shall so ectli*r to the Department or the US DOT, whichever is appropriate, and shall set forth what efforts the Subgrantee has made to obtain the requested information- 2 r,'1(7 H XD017 L4 Q, 22/ZJ07 ity rf 140-rl.h pic.,h Land STE2 Cortaprehonsive F, Sanctions for noncompliance: In the event of the Subgrantee's noncompliance with the nondiscrimination provision of this Agreement, the Department shall impose such sanction's as it or the US DOT may determine to be appropriate. F. Incorporation of provisions; The Subgranwe shall include the provisions of'paragraphs A. through I;_ in every subvontract, including procurements of matcriak and leases of equipment, unless exempt by the regulations or directives. The Subgrantce shall take such action with respect to any subcontract or procurement as the Department may direct as a means of enforcing such provisions, including sanctions for noncompliance. flowevcr, in the event a Subgrantec becomes involved in, or is threatened with litigation with a subcontractor or supplier as a result Of such direction, the Subgrantee may request the Department to enter into litigation to protect the interests of the state, and in addition, the Subgranicc may request the ''United States to enter into such litigation to protect the interests ofthe United States. ARTICLE 23. DISADVANTAGED BUSINESS ]ENTERPRISE It is the policy Of the Dcparhnent and the USDUI'that Disadvantaged Business Enterprises, as defined in 49 CFR Part 26, shall have the opportunity to participate in the Performance of agreements financed in whole or in part with federal funds, Consequently, the Disadvantaged Business Enterprise requirements of 49 CFR Part 26, apply to this Agreement as follows: • The Subgrktntee agrees to insure that Disadvantaged Business Faterprises, as defined in 49 CFR Part 26, have the opportunity to participate in the performance of agreements and subcontracts financed in whole or in part with federal funds. In this regard, the 'Subgrantee shall make good faith efforts in accordance with 49 'CFR Part 26, to gins ure that Disadvantaged Business Enterprises have the opportunity to compete for and perforrn agreements and subcontracts, • 'Me Subgrantee and any subcontractor shall not discriminate on the basis of race, color, sex, national origin, or disability in the award and performance of agrevraents funded in whole or in part with federal funds. '-rbgiw requirements shnIt bo inicludod in any subconnaut, Failure to carry out the requirement,, set Forth above shall constitute a breach of this Agreement and, after the notification of the Department, rruay result in termination of this Agreement by the Department, or other such remedy as the Department deems appropriate. , ARTICLE 24. DEBARMENTISUSPENSION A. The Subgrantee certifies, to the best of its knowledge and belief, that it and its principals 1. Are not Presently debarred, suspended, proposed for debarment, declared ineligibie or voluntarily excluded from covered transactions by any federal department or agency; 2. Have not within a three (3) year period preceding this Agreement been convicted of had a civil judgment rendered against them for commission of fraud or .a criminal offense in connection with obtaining, attempting to obtain, or perfonuing a federal, state, or local public transaction or contract under a public transaction, violation of federal orstate antitrust statutes; or commission orlembezzlcment, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; 3. Are not presently indicted or otherwise ctirninally or civilly chargod by a federal, state, Or local governmental entity with commission of any ref the offenses enumerated in paragraph A. 1 or this Article; and 4. Have not, within a three (3) year period preceding this Agreement, had one or more fiodoral, state, or local public transactions terminated for cause or default, 2 0 C8 KDOT 15 iq )'22 /207 �ty of Nnrth Richiarjj SILP Cornp�(-hprsava B. Where the 'Sub�grantee, is unable 10 OcrtifY to any of the statcraents in this Article, Such Subgraritce shall attach an explanation to this Agreement, C. 'The Subgrantce is prohibited from making any award or permitting any award at any tier to any party which is debarred or suspended or otherwise excluded from Or ineligible for participation in federal assistance programs tinder Executive Order 12549, Debarment and Suspension, D. The SubgTantee shall require any party to a subcontract or purchase order awarded Linder this Grant Agreement to certify its eligibility to receive federal grant farads, and, when requested by the Department, to furnish a copy of the certification. ARTICLE 2& LOBBYING CERTIFICATION The Subg•antee certifies to the best of his or her knowledge and belief that: A. No fecierally appropriated funds have been paid or will be paid by or on behalf of the Subgruntee to any person for influencing or attempting to influence an officer or employee of any federal agency, a Member of Congress, an officer or employee ofCongress, or an employee of a member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement, B. I f any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any federal agency, a Member of Congress, an officer or employee of Congress. or an employee of a Member of Congress 111 connection with this federal contract, grant, loan, or cooperative agreement, the party to this Agreement shall complete and submit Standard Form - LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. C. The Subgrantee shall require that the language of this certification be included io the award documents for all subawards at all tiers (including subcontracts) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation Of fact Upon which relizzce was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.& Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $ 10,000 and not more than $ 100,000 for each such failure. ARTICLE 26. CHILD SUPPORT STATEMENT Unless the Subgrantee N a govenunental or non-profit entity, the Subgrantee certificS that it either will go to the Department's website noted below and complete the Child Support Statement or already has a Child Support Statement on rile with the Department. The Subgruntee is responsible for keeping the Child Support Statement current and on file with that office for the duration of this Agreement period, The Subgrauttoe further certifies that the Child Support Statement ion file contains the child support information for the individuals or business entities named in this grant. Under Section 231,006, Family Code, the Subgrantee certifies that the individual or business entity named in this Agreement is not ineligible to receive the specified grant or payment and acknowledges that this Agreement may be ternihiated and payment may be withheld if this certification is inaccurate. The form for the Child Support Statement is available on the Internet at-. http.I `www.dut..state-tx.us,lcsofdefa,,It h­. 210(3$ KDOT 16 8/22/2007 ity cf North P.J.r h Arid STEP C(AIn.Prehe¢ si e 2QC8 RESPONSIBILITIES OF THE 'St.lB'GRANT E: A. Carry out all performance measures established in the grant, including fulfilling the law enforcement objectives by implementing the Operational Plan contained in this Grant Agreement. B. Submit all required reports to the Department (TxDOT) fully completed with the most current information, and within the required times, as defined in article 3 and Article 7 of the General. Teens and Conditions of this Grant Agreement. This includes reporting to the Department on progress„ achievements, and problcrns in monthly Performance .Reports and attaching necessary source documentation to support all costs claimed in Requests for Reimbursement (:R:F ). ". Attend. Department- approved grant management training. D. Attend meetings according to the following,: 1. The Department will arrange for meetings with the'Subgrantee to present statues of activities and to discuss problems and the schedule for the following quarter's work. The project director or other appropriate qualified persons will be available to represent the Subgrantee at meetings requested by the Department. F,. Support grant enforcement efforts with public information and education (PI &I ) activities. 'Salaries being clammed for PI&la activities must be included in the budget. F. When applicable, all newly developed PUE materials must be submitted to the Department for written .approval„ through the TxDDT Electronic Grants Management System (cCrrants) system messaging, prior to fmal production. Refer to the 'Traffic 'Safety Program Manual regarding PI&E procedures. Q, For out of state travel expenses to be reimbursable, the 'Suibgrantee must have obtained the written approval of the Department, through cGrants system messaging, prior to the beginning of the trip. Grant approval does not .satisfy this requirement. For Department district - managed grants, the Subgrantee must have obtained written Department district approval, through cGrants system messaging, for travel and related expenses if outside of the district boundaries. H. Maintain verification that all expenses„ including wages or salaries, for which reimbursement is requested is for work exclusively related to this project. 1. Ensure that this grant will in no way supplant (replace) £finds from other sources. Supplanting, refers to the use of federal funds to support personnel or any activity already supported by local or state funds. I Ensure that u�tuc:h officer working on the STEP project will complete an officer's daily report form. The form should include at a minimum: name, date, badge or identification number, type of ,gaunt worked, grant site number, mileage ( including starting and ending mileage), hours worked, type of citation issued or arrest made, officer and supervisor signatures. KDUT 17 8/'2'2/;/0 D`) ir-Y Ot Nnrth Richiand 5M, Compr,.,LerSjVp 2008 K. Ensure that no officer above the rank of Lieutenant (or equiva.lent tjtic) will be reimbursed for enforcement duty, unless the Subgrantee received specific written authorization from the Departincrit, through eGrants system messaging, prior to incurring costs. L. Subgrantee may work additional STEP enforcement hours on holidays or special events not covered under the Operational Plan. However, additional work must he approved in writing by the Department, through eGran(s system messaging, prior to enforcement. Additional hours must be reported in the Performance Report for the time period for which the additional hours were worked. M, If an officer makes a STEP- related arrest during the shift, but does not complete the arrest before the shift is scheduled to end, the off icer can continue working under the grant to complete that arrest. N. Subgrantee s with a traffic unit will utilize traffic personnel for this grant, unless such personnel are unavailable for assignment. D. Prior to conducting speed enforcement, the Subgrantee must ,,elect and survey enforcement sites that comply with existing stale mandated!spccd limits in accordance with tbe'Texas Transportation Code, Sections 545.352 through 543.3,5'6�. P. Officers assigned to speed sites should be trained in the tise of 'radar or laser speed Mmurement devices. Q. The Subgrantee should have a safety belt use policy. If the Subgrantee does not have a safety belt use policy in place, a policy should be implemented, and a copy maintained for verification during the grant year. R. Officers working DWf enforcement must be trained in the National Highway Traffic Safety Aden hiis"tiou/Internatilonal Association of Chiefs of'Police Standardised' Field Sobriety Testing (SFST), In the case ofa first year subgrantee, the officers must be trained, or scheduled to be SFST trained, by the end of grant year. For second or subsequent year grants, all officers working DWI enforcement must be SFST trained, S. The Subgrantee should have a procedure in place for contacting and using drug recognition experts (DREs) when necessary. T. The Subgrantee is encouraged to use the DWI On-line Reporting System available through the Buckle Up Texas Web site at www-buckli uptexasxom. XDOT 14 8/22/2007 'tY (If North Richland SPED RE SPONSIBILITLES OF THE DEPARTMENT: A. Monitor the Subgm, ntee's compliance with the perfierniance obligations and fiscal requirements of this Grant Agreement using appropriate and necessary monitor-ing and inspections, including but not limited to: review of periodic reports • telephone conversations ■ cGrants systern messaging e-mails and letters quarterly review meetings • physical inspection of project records and supporting documentation, B. Provide program management and technical assistance. C. Attend appropriate meetings. D. Reimburse the Subgrantce for all eligible Costs as defined in the project budget, Requests for Reimbursement will be processed up to the maximum amount payable as indicated in the project budget. E. Perfarin an administrative review of the project at the Close of the grant period to: • Asccrtain whether or not the pmject objectives were net • Review project accomplishments (performance measures completed, targets achieved) • Docurnent any progress towards self-sufficiency • Account for any approved Program Income earned and expended • Identify exemplary performance or best practices. XbOT 19 8/22/2007 Ly Of Nox 1 11 Richjan, SVEP Compreter,E, iVe GOALS AND STRATEGI:pS Goal: To increase effective enfcrcement and adiudication of traffic safpty-related laws to reduce fatal and seriour, injury crashes, Strategies: Increase enforcement of traffic safety- relate„ 1,awn. Increase Public education and irfcrmatkon campaign�s_ Goal. To reduce the nurRber of DWL-related crashes, injurier_:, and fatalities Strategy, Increase enforcement of DWI laws. Goal; To increase OcCupant restraint use in all trUcks passenger vehic:es and Strategy. Increase enforcement of cccupation protection Laws. 21 1 agree to the above 'goals acrd strat,egies. TXDOT 2 D 8/22/2DO7 qty of 14CELh Rlch;&nd c STFP Cc7prehens LVC' 2006 BASELINE 119FORMATIow B&sel'" Definition- A number e,61-vin, as a foundation for subgx-antee., t., rxeaSUre pre -grant traffic eafnrccement activity, Provided by tile subgrax1tee in order Base-line infOrMation must be to identify local traffic enforcement related activity„ This informatior, Should With STEP grant doliax,s, exclude any a::tivitY generated 011ce the baseline is 'established, these figures w"l be "d to COmPare subsequent year's local and grant traffic enforcement activity. Note: Baseline data used must be no Older than 2001 data., Baseline Year (L2.2 months) FrOm I/l/2006 To 12/31/201016 Baseline Measure Baseline Number NJmher of L)r'v'119 While ZzItOxicated 4(DWI) arrests 357 Number of safety belt citations 157 Number of child safety seat Citations 42, 2�t'lnlber Of al0o)LOL-related crashes 24 312rVey data for the fGljowj.Uq should not be Older than Sep 01, 2606 PprcejlLage of safety belt Usage Qaseline Nurnber MDnth/year of Survey 'e9'55% 01/2007 Atta�Ch Safety Belt survey data 5777-120070EA714?TT.xj t i'xDo,r 21 8?22/20()7 STEP Ccrnpreher,sive 2008 LAW ENFORCEMENT OBJECTIVE / PERFORMANCE MEASURE ObjeCtive / Performmee Measure 1. Number and Type citations, /arrests to be issued Under STFLD N. Tncrease DDT arrests by h- 111crease 'Safety 2elt citations by c. .Increase: Child safety seat Citations by 2. PrOPOSO-. 'Total Number of Traffic RelaLed crashes a. Rednce the number of Alcojj(:rJ-Related crashes to I lricre,aj-.e Safety Belt usage a- increase the Safety nelt usage rate atnong drivers and frorLt seat passegel:S to 4. Number of Enforcemezjt Hours STEP Indicater Target Xumb4sr ]9f IGOG 5C 20 1226 .1-00 TXDOT 2 2 8/22/27107 -ity of NorLh i�iuhland STEP Comprehensive 20108 PI&E OBJECTIVE / PERFORMANCE MEASURE Objective / Perfornance measure Target Number Suppoxt Gzaft efforts with a public Information and edu(aation (PILE) program, a. Conduct. presentations 4 b. Conduct, media exposkire,s (e.q. news coniereriQes, news. releaser, and interviews) c. Cunduc�t commurkity evp-nt.i (e.g. health fairs, booths) 4 d. PrQduc!e the following number of public infoxmaLion anal educal.ion 0 materials e, Numlaer OL Public information and education materials distributed 113100 IM)OU 23 8/22/2007 tiJ E , E- 04 eye cs Aj N � U 4A r. err 11 Q W o In x 71 ........ do do , aj pry kn N C.5 en atl IV -14 0i 41 . . . ........ . .... . ..... .cy as 0 41 sa 4j .41 44 0 M 0 Vq �4 14 err 11 Q W o In x 71 ity uf Ao��th Ric.hl,-md S;TEP Comp�eh�n ,, i ve 2 13 l�:3 TRAVEL AM PER DIEM; STEP ENFORCEMENT MILEAGE - 3010 miles 125, i 1 cast per MiLe 0.008 Total $10,140AC TXr),O'T 25 8 / 2 2 / 2 Cl 7 Amount Percentagsm TXDQT Match 0, 140.48 T) 4 �—.go Total $ILO,140.40, TXr),O'T 25 8 / 2 2 / 2 Cl 7 !ity of No• �-h ?d tiaml STEP CompreheG F, vu 2006 SUPPLIES - 5100 Dercript i nn 7ickots Unit Price 110.215 Quantity Total 'Cost $262.57 TXDOT 2, b —Azwim–tl Percentages TIEDOT $0 00 0. or) Match $262,'3 1100.00 t 262.50 % TXDOT 2, b »y of »w: h Lkic h I a I'd Slr� CcDmprE-.hp.n,,3lve yw OTHER MISCELLANEOUS - 700 Name 0 0 G r De s aipt i aa di s roqja, I 7711it price $0 - C0 Quantity Total at #, 00 T 2V ��126223007 TXDC 7 AM* TxDOT ��$Illtoo, 0.00 96 --Rat C —ft o. 0 0.00 1 — T;tal—. — $0.00 T 2V ��126223007 TXDC 7 ity of Nortti R.LutiL&Eij STEP Comprehensive 2008 - I IN 011" *054VI Uri 6rl RV' bulaget Category TXDOT match "fatal Category I - Labor Costs I=Sal aries 0200)Fringa Benefits :54,9, 382. 24 $1101 Q a 0 1 0L 7 ---. 7 71 3 „..340 6 c4r , 302.'24 $13,846.78 Category I Saab -Total $59,382.24 , 46.78 $63,229.D2' Category 11 - Other 1);Lrect Costs (3100)Travel ;4100)Equipment (,900)9upplies $0.00 $0.00 .$1 (), 3 4 0, 4 0 $262.SO $L0,7.i0.40 $D.00 $262.50 (6DO Carftractual services $0.00 MO) Other Miscellaneous 50.00 $0.00 $MD Category 11 SUb-Total $0.401 $10,402.90 $ 10_1 4 2 �.9 0 Total Direct Costs $59,382.24 $14,249.68 $73,631.92 category irl lEndirect Costs (800) Indirect Coot Rate 0. ft0 summary TotaL Labor Costs $69,982.24 $31846.76 $63,2;9.02 Total Direct Costs Sri. DO $1 Or 4 1 $10,402 90 Total Indirect Costs $(0..0107 Grant Total $59,1382.241 014,2A9.681 Fund Smirces (Percent Shared 8Q.45 %: I 19.35% 1 TXD(DT 28 8/22)/2100; CITY OF NORTH RICHLAND HILLS Department: Finance Council Meeting Date: 8 -27 -2007 Presented by: Larry Koonce Agenda No. F.3 Subject: PU 2007 -037 Award Bid No. 07 -1377 for Library Furnishings to BKM Total Office of Texas for $110,993.63, Business Interiors for $13,618.52, and KI for $47,265.35 for a total amount of $171,877.50. In the 2006/2007 approved library construction budget, funds were appropriated for furniture at the new North Richland Hills Public Library. Notice of the City's intent to accept bids was advertised in local newspapers, as required by State statute, and posted on the City's website. Seventeen (17) vendors were contacted and requested to participate in this bid process. Bid specifications were mailed to fourteen (14) firms. Five (5) bids were received from the following vendors: Armstrong Office Furniture BKM Total Office of Texas Business Interiors, Inc. KI Wilson Office Interiors The bid was divided into groups and awarded to a vendor based on those groups, not in total or by individual line item. The contract is being awarded to the lowest responsible bidder who is providing the best value for the City as allowed by Texas Local Government Code §252.043 and stated in the bid document. The bid specifications requested pieces that are to be used to furnish and create different library areas using a brand name or equal requirement for all pieces. The architect, Purchasing Manager and the Finance Director recommend awarding to three (3) vendors based on the lowest and best pricing meeting specifications. The first category of items is for the purchase of thirty -four (34) of the line items including $10,700 for freight and installation. It is recommended to be awarded to BKM Total Office of Texas in the amount of $110,993.63. This grouping includes two types of system furnishings, Steelcase desk systems for use in staff workspaces and Steelcase panel systems for use as public access computer workstations. The Steelcase brand or equal was specified for the overall quality of the system and the flexibility it offers in arranging its components to adapt them to library use. BKM submitted the lowest total bid on these items. Wilson offered bids on an Allsteel panel system which has different materials, different dimensions and different installation configurations that did not meet specifications. Though Wilson's bids are lower on some isolated components, their total bid for the system is higher. Wilson also submitted bids on substitute Hon desks and chairs which did not meet specifications. The second category is recommended to be awarded to Business Interiors, Inc. in the amount of $13,618.52 for five (5) of the line items for outdoor furniture and stool, includes $1,319 freight and installation. Business Interiors was the only bidder that submitted a bid on the items as specified. Wilson submitted pricing on outdoor furniture of different design that did not meet specification, and a stool that is an unacceptable substitute for the one specified. The third category is recommended to be awarded to KI in the amount of $47,265.35 for twenty -two (22) of the line items for various tables and chairs, includes $2,200 freight and installation. The KI brand or equal was specified for its high quality, and in keeping with the high standards of design and image of the new library. The KI distributor was low bidder on 14 of the 22 items. Armstrong and Wilson submitted lower bids for 8 items and BI submitted a lower bid for the remaining 1 item. These items were either lower quality furniture and did not meet specification, or it were within a few hundred dollars and it was in the best interest of this project to limit the number of deliveries and installations to as few vendors as possible. The architect and Finance Director /Purchasing Manager further recommend that no award be made on the remaining twelve (12) items listed in Bid No. 07 -137 for Office and Lounge Furniture. These items include two (2) alternates for task chairs and two (2) alternate size packages of children's play forms. It also includes eight (8) items on which no acceptable bids were received. Brown Reynolds Watford Architects, Inc. have reviewed and evaluated the bids (see attached letter) and believe that some of the low bids were either unacceptable quality and did not meet specifications, or were not compatible with other furniture to be acquired. Recommendation: Award Bid No. 07 -1377 for Library Furnishings to BKM Total Office of Texas for $110,993.63, Business Interiors $13,618.52, and KI for $47,265.35 for a total amount of $171,877.50 BROWN REYNOLDS WATFORD ErdEW!SJ A R C H I T E C T S I N C. 3535 TRAV1557RUT SUITE 250 L11402 DALLAS, ItXAS 75204 11 4 -529 -0704 FAX WWWORWARCH.CDKI August 22, 2007 Ms. Jamie Brockway M.B.A., A.P.P, Purchasing Manager City of North Richland Hills 7301 N.E. Loop 820 North Richland HiM, Texas 76180 RECOMMENDATION FOR BID NO. 07-1377 FURNITURE CONTRACT AWARD FOR THE CITY OF NORTH RICHLAND HILLS LIBRARY Please accept our recommendation for award of furniture contracts for the North Richland Hills Library project based on bids received from Armstrong Office Furniture, BKM Total Office of Texas, Business Interiors, Inc., KI, and Wilson Office Interiors. We believe that BKM Total Office of Texas, Business Interiors, and K1 provided the best value and lowest responsible bid for the specified products, We believe that the substitutions bid by Armstrong Office Furniture and Wilson Office Interiors were not equal substitutions to the products specified. We recommend a contract is awarded to BKM Total Office of Texas in tile amount of $110,993.63, Business Interiors in the arnount of $13,618.52, and KI in the amount of $47,265.35 for a total amount of $171,877.50. Please contact us if we may provide additional assistance, CRAIG S. REYNOLDS, FAIA PRINCIPAL OFFICE FURNISHING FOR NEW PUBLIC LIBRARY BID NO. 07 -1377 Armstrong Business ITEM DESCRIPTION KI Office BKM Interiors Wilson Extended Extended Extended Extended Extended Price Price Price Price Price KI Torsion sled base, upholstered Chair seat & back; $3,161.20 $3,947.58 $3,884.16 $3,972.78 $3,842.86 wlarms; (Qty of 14) KI Torsion sled Chair base, upholstered $2,460.87 $2,544.84 $2,562.21 $2,653.56 $2,553.57 seat & back; wlarms, (Qty of 9) KI Toriion Sled Conference Base, upholstered $8,623.04 $8,983.36 $9,069.12 $9,155.20 $9,027.20 Chair seat & back wlarms, (Qty of 32) Folding 30" x 72" KI $2,277.84 $2,562.60 $2,570.04 $2,570.04 $2,458.44 Table Duralite: Qty of 12} ' Versteel Conference Performance 30" x Table 60" folding leg No Bid $2,768.64 $2,656.56 $2,910.92 $2,541.28 table, base Black; (Qty of 4 Versteel 30" x 60" Conference folding leg table; No Bid $1,384.32 $1,548.66 $1,630.34 $1,481.38 Table base Black; (Qty of 2) Break Room KI Portico 48" x48" Table FXD leg, square $1,269.60 $1,447.59 $1,432.44 $1,432.44 $1,370.22 Tbase, (Qty of 3) OFFICE FURNISHING FOR NEW PUBLIC LIBRARY BID NO. 07 -1377 Armstrong Business ITEM DESCRIPTION KI Office BKM Interiors Wilson Extended Extended Extended Extended Extended Price Price Price Price Price Impress KI621Jr37; Chair pedestal base ALTERNATE adjustable loop $7,593.82 $7,276.88 $8,775.26 $8,953.10 $8,393.84 Not awarded arms; (Qty of 26) Impress KI621Jr37; Chair pedestal base ALTERNATE adjustable loop $4,088.98 $3,918.32 $4,725.14 $4,837.28 $4,519.76 Not awarded arms, (Qty of 14) KI Soltice open arm Lounge med. lounge chair; $3,201.32 $3,183.68 $3,259.60 $3,327.64 $3,213.56 Chair wood finish: (Qty of 4) Lounge KI Soltice open arm Chair med. lounge chair $1,899.42 $1,751.34 $1,794.60 $1,894.06 $1,795.92 (Qty of 2) Lounge KI Soltice open arm Chair med. lounge chair $1,414.46 $1,509.34 $1,544.60 $1584.76 $1,477.50 (Qty of 2) Lounge KI Soltice open arm Chair med. lounge chair $1,452.72 $1,509.34 $1,544.60 $1,584.76 $1,508.96 (Qty of 2) Lounge KI Soltice open arm Chair med. lounge chair $1,510.80 $1,599.34 $1,627.26 $1,684.76 $1,556.56 (Qty of 2) Lounge KI Soltice open arm Chair med. lounge chair $2,900.48 $3,095.64 $3,168.72 $3,225.32 $3,031.08 (Qty of 4) Lounge KI Soltice open arm Chair med. lounge chair $2,369.82 $2,371.62 $2,428.14 $2,467.83 $2,322.60 (Qty of 3) Lounge KI Soltice closed arm Chair medium lounge chair $1,969.92 $1,875.00 $1,914.36 $1,977.82 $1,831.16 (Qty of 2) OFFICE FURNISHING FOR NEW PUBLIC LIBRARY BID NO. 07 -1377 Armstrong Business ITEM DESCRIPTION KI Office BKM Interiors Wilson Extended Extended Extended Extended Extended Price Price Price Price Price Lounge KI Soltice closed arm medium lounge chair $3,449.40 $3,623.72 $3,704.88 $3,769.56 $3,543.96 Chair (Qty of 4) Lounge KI Soltice closed arm Chair medium lounge chair $945.60 $943.28 $964.83 $997.05 $922.92 (Qty of 1) KI Soltice medium 2 -Seat Sofa open arm med $1,041.38 $822.77 $1,047.57 $1,085.73 $1,041.39 Loveseat (Qty of 'I Drum Table Sauder drum table 20" NO ACCEPTABLE h x 2sdia; maple edge &sides; plastic laminate No Bid $2,763.20 No Bid No Bid $1,724.00 PRODUCT WAS SUBAMTED top: [Qty of 4] Drum Table Sauder drum table NO 20" h x 24" sq; maple ACCEPTABLE edge & sides; plastic No Bid $690.80 No Bid No Bid $496.76 PRODUCT laminate top: WAS SUBNIITTED (Qty of 1) Sauder drum table Drum Table 20" h x 24" dia; NO ACCEPTABLE maple edge & No Bid $2,763.20 No Bid No Bid $1,724.00 PRODUCT Sides; plastic WAS laminate top: SUBNIITTED (Qty of 4 Sauder drum table; Drum Table 20" h x 24" dia; NO ACCEPTABLE maple edge & No Bid $3,454.00 No Bid No Bid $2,155.00 PRODUCT Sides, plastic WAS laminate top: SU13NHTTED (Qty of 5 Drum Table Sauder drum table NO 20" h x 24" dia; ACCEPTABLE maple edge & No Bid $690.80 No Bid No Bid $431.00 PRODUCT WAS sides; plastic SUBMITTED laminate of 1 OFFICE FURNISHING FOR NEW PUBLIC LIBRARY BID NO. 07 -1377 Armstrong Business ITEM DESCRIPTION KI Office BKM Interiors Wilson Extended Extended Extended Extended Extended Price Price Price Price Price Sauder drum table-, Drum Table 20" h x 24" dia; NO ACCEPTABLE maple edge & No Bid $690.80 No Bid No Bid $431.00 PRODUCT sides, plastic WAS laminate top: SUBNIITTED (Qty of 1) Patrician Network Lounge wltablet arm Chair W/Tablet 41123T -R; No Bid $6,619.26 $5,089.02 $5,366.70 $5,234.52 (right tablet arm) Arm (Qty of 6 Lounge Patrician Network Chair wltablet arm No Bid $2,790.54 $2,544.48 $2,683.35 $2,617.26 W/Tablet (left tablet arm) Arm (Qty of 3 KI Perth PG Glider; Glider frame: Natural $814.18 No Bid $900.26 $838.86 $672.33 beech, (Qty of 1) Lounge KI armless Eden; $978.36 No Bid $921.72 $929.30 $943.54 Chair Qty of 2) Study Table KI Portico 36" x $399.52 $447.78 $450.77 $450.77 $431.19 72" (Qty of 1) Study Table KI Portico 30" x $2 ' 022.24 $2,294.64 $2,281.62 $2,281.62 $2,182.50 60" (Qty of 6) Bistro Table KI Portico36" X $60212 $689.54 $679.36 $679.36 $649.86 42" (Qty of 2) Table dla, KI PQty $301.06 $344.82 $339.68 $339.68 $324.93 of 1} OFFICE FURNISHING FOR NEW PUBLIC LIBRARY BID NO. 07 -1377 Armstrong Business ITEM DESCRIPTION KI Office BKM Interiors Wilson Extended Extended Extended Extended Extended Price Price Price Price Price DM Braun, 72" Bench wood bench with No Bid No Bid No Bid $4,005.69 $3,261.00 outdoor finish (Qty of 3 DM Braun outdoor Outdoor wood chair wlarms, wloutdoor No Bid No Bid No Bid $1,803.42 $1,630.50 Chair finish (Qty of 3 DM Braun wood Outdoor table 24" sq. 22" No Bid No Bid No Bid $477.27 $298.93 Chair high, outdoor finish (Qty of 1 Children's Computer Virco ZCANT Chair chair 15" s.h., frame No Bid $846.96 No Bid No Bid $1,995.72 ALTERNATE (Qty of 12) Not awarded Adult Stack Virco ZCANT Chairs chair 15" s.h.; No Bid $988.12 No Bid No Bid $2,328.34 ALTERNATE frame (Qty of 14) Not awarded Play Forms Agati Altra Forma ALTERNATE Collection 9- piece set; multi - colors (Qty of 1 No Bid No Bid $3,308.27 $3,482.39 $3,331.11 Not awarded Set) Agati Altra Forma Play Forms Collection 13- ALTERNATE p iece set multi- No Bid No Bid $4,840.15 $5,094.89 $4,873.56 Not awarded colors (Qty 1 Set) Agati Altra Forma Collection 19- Play Forms piece set, multi- No Bid No Bid $6,760.11 $7,115.91 $6,806.79 colors 1 Set Display Bizchair. 78.5 "h x Cabinet 36 "w x 18.75 "d; No Bid $3,234.60 No Bid $2,464.94 $3,895.78 birch, (Qty of 2) OFFICE FURNISHING FOR NEW PUBLIC LIBRARY BID NO. 07 -1377 Armstrong Business ITEM DESCRIPTION KI Office BKM Interiors Wilson Extended Extended Extended Extended Extended Price Price Price Price Price Totalibra wood stool, frame Stool chromed tubular No Bid No Bid No Bid $3,548.20 $3,394.04 steel 30" high (bar height) (Qty of 4) Steelcase Answer 30 "w x 24" d x Stand -up 54 "h fabric panels; No Bid No Bid $1,280.10 $7,507.92 $4,554.48 Email Station power at base; wood top cap and trim: (Qty of 6) Steelcase Answer 30 "w x 24" d x 42"h fabric panels: Sit -Down Steelcase Vertical No Bid No Bid $24,636.16 $43,982.72 $23,507.18 Adult Station Surface Classics power at base; wood top cap and trim: (Qty of 38) Steelcase Answer 30 "w x 24" d x 42"h fabric panels: Steelcase Vertical Sit -Down Surface Classics No Bid No Bid $3,164.34 $3,223.98 $3,002.10 Adult Station power at base; wood top cap and trim (Qty of 6 Steelcase Answer 30 "w x 24" d x 24 "h Sit -Down fabric panels: Children's Steelcase Vertical No Bid No Bid $6,539.64 $11,333.28 $20,784.96 Station Surface Classics at base; wood top cap and trim (Qty of 12) OFFICE FURNISHING FOR NEW PUBLIC LIBRARY BID NO. 07 -1377 Armstrong Business ITEM DESCRIPTION KI Office BKM Interiors Wilson Extended Extended Extended Extended Extended Price Price Price Price Price Steelcase Answer Sit -Down 60 "w x 24" d x 24 "h Children's fabric panels: Double Steelcase Vertical No Bid No Bid $1,798.24 $3,136.48 $1,729.42 power at base; wood Stations top cap and trim: (Qty of 2) Turnstone Sweeper Computer Side chair, armless; No Bid No Bid $6,777.30 $7,901.96 $7,218.46 Chair 4 -leg wlcastors; (Qty of 41) Turnstone Sweeper Computer Side chair, armless; No Bid $7,852.00 $4,004.00 $3,852.68 $4,920.50 Chair 4 -leg wlcastors; (Qty of 26 Steelcase Criterion HtIW adjustable; Task Chair fixed back, sliding No Bid No Bid $7,495.80 $13,248.30 $5,440.50 ALTERNATE seat pan, (Qty of 26 Steelcase Criterion Task Chair Ht /W adjustable; fixed back; sliding No Bid No Bid $4,036.20 $7,133.70 $2,929.50 ALTERNATE seat pan; (Qty of 14 Steelcase Classic Payback 30" x 72" Freestand desk double pedestal: Work Station 2-h lateral files 2- No Bid No Bid $1,397.55 $1,979.99 $1,410.35 overhead wlopen shelves 35 7116 "h" (Qty of 1) OFFICE FURNISHING FOR NEW PUBLIC LIBRARY BID NO. 07 -1377 Armstrong Business ITEM DESCRIPTION KI Office BKM Interiors Wilson Extended Extended Extended Extended Extended Price Price Price Price Price Steelcase Classic Payback 30" x 72" desk double pedestal: 2 -h lateral files; 2- Freestand overheadwlopen No Bid No Bid $2,560.14 $3,842.70 $3,102.70 Work Station shelves 35 7116 "h" ' with tack -board bookcase with 3 shelves 36" x 48" (0ty of 2 Steelcase Classic Freestand Payback 30" x 72" Work Station desk, double No Bid No Bid $3,440.64 $5,189.97 $4,231.05 pedestal: 2 -h lateral files (Qty of 3) Steelcase Classic Payback 30" x 72" Freestand desk,double pedestal; 20" x 72" credenza No Bid No Bid $1,885.14 $2,886.34 $2,345.68 Work Station lateral file; bookcase w13 shelves 30" x 48 "; (Qty of 2 Steelcase Classic Freestanding Payback cabinet w14 No Bid No Bid $509.52 $619.09 $369.00 Cabinet adjustable shelves (Qty of 1) Steelcase Classic Payback 30" x 66" Freestand desk single pedestal No Bid No Bid $3545.52 $5,367.30 $4,664.22 Work Station on right side; 20" x ' 72" left return with 2- h lateral; (Qty of Steelcase Classic Payback 30" x 66" Freestand desk single pedestal No Bid No Bid $1,181.84 $1,789.10 $1,554.74 Work Station on left side; 20" x 72" ' left return with lateral; Qty of 2 OFFICE FURNISHING FOR NEW PUBLIC LIBRARY BID NO. 07 -1377 Armstrong Business ITEM DESCRIPTION KI Office BKM Interiors Wilson Extended Extended Extended Extended Extended Price Price Price Price Price Freestanding Classic Payback 1" Table Top thick table top No Bid No Bid $361.48 $534.56 $465.24 (Qty of 4 Freestanding TSSATBTS table Table Base bases (2 -per table) No Bid No Bid $641.20 $930.88 $1,051.84 (Qty of 8 bookcase with 3 Bookcase shelves 36" x 48" No Bid No Bid $133.19 $191.36 $141.00 (Qty of 1 36" x 72" Steelcase Turnstone Classic Workstations Payback desk with No Bid No Bid $1,569.68 $1,996.36 $1,940.78 double pedestals; laterals file right return (Qty of 2) 36" x 72" Steelcase desk with double Workstations pedestals; laterals No Bid No Bid $1,569.68 $1,996.36 $1,940.78 file right return (Qty of 2) Workstations 54" x 72" Steelcase Answer powered No Bid No Bid $514.28 $614.88 $3,220.56 Panels panel (Qty of 2) Workstations 54" x 48" Steelcase Answer powered No Bid No Bid $189.64 $231.48 No Bid Panels panels (Qty of 1) 54" x 72" Steelcase Workstations Answer non powered No Bid No Bid $773.76 $1,229.76 No Bid Panels panels Steelcase (Qty of 4 T- Junctions for the Workstations Steelcase Answer No Bid No Bid $74.22 $132.84 No Bid Panels panels 54" TS754TPJ (Qty of 2 OFFICE FURNISHING FOR NEW PUBLIC LIBRARY BID NO. 07 -1377 Freight and Installation $2,200.00 $10,700.00 $1,319.00 Total $47,265.35 11 , 3. $13,618.52 Armstrong Business ITEM DESCRIPTION KI Office BKM Interiors Wilson Extended Extended Extended Extended Extended Price Price Price Price Price Inline Junctions for Workstations the Steelcase Panels Answer panels 54" No Bid No Bid $29.80 $55.68 No Bid (Qty of 2 Freestanding Classic Payback 1 " Table Top tlnck table top No Bid No Bid $411.76 $607.28 $591.28 (Qty of 4 Freestanding TSSATBTS table Table Base bases (Qty of 8) No Bid No Bid $641.20 $930.88 $1,051.84 30" x 60" Steelcase Desk Turnstone Classic No Bid No Bid $532.78 $820.00 $2,692.00 Payback desk (Qty of 2) Freight and Installation $2,200.00 $10,700.00 $1,319.00 Total $47,265.35 11 , 3. $13,618.52 CITY OF NORTH RICHLAND HILLS Department: City Manager's Office Presented by: Elizabeth Reining Council Meeting Date: 8 -27 -2007 Agenda No. F.4 Subject: CN 2007 -071 Approval of New Committee Members to the Youth Advisory Committee As Council may recall from the June 25, 2007 regular Council meeting, the Youth Advisory Committee (YAC) had 6 members graduate in May, 2007. Sarah Shive - Birdville High School Elise Manley - Fort Worth Christian Collin Brewer - Birdville High School Taylor Burroughs - Birdville High School Keely Roberts - Birdville High School Josh Pherigo - Richland High School YAC has 5 members that are returning and automatically re- appointed to one -year terms without Council approval because they are in good standing. Justin Durko - Richland High School Bryce Orr - Richland High School Kenzie Brewer - Birdville High School Dyar Bentz - Richland High School Karen Cooper - Richland High School At the June 25, 2007 City Council meeting, Council appointed 3 new members to partially fill the 7 vacancies on the 12 member board. Hannah Bullington - Richland High School -Grade 12 Katie Thornton - Richland High School -Grade 12 Morgan Chaney - Richland High School -Grade 9 Since that meeting we have received an additional application - -Paige Burroughs of Birdville High School, who is in the 10th Grade. This new appointment is in accordance with the YAC by -laws. The YAC recommends appointment of Paige Burroughs from Birdville High School. Recommendation: Approve the Youth Advisory Committee's recommendation for a new committee member for 2007 -2008. CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Patricia Hutson Council Meeting Date: 8 -27 -2007 Agenda No . F.5 Subject: CN 2007 -070 Appointments to Animal Control Shelter Advisory Committee - Places 1 and 3 The individuals serving in Places 1 and 3 on the Animal Control Shelter Advisory Committee terms of office expired on June 30. The ordinance establishing the Committee states that the appointment to Place 1 shall be a licensed veterinarian and the appointment to Place 3 shall be an individual whose duties include the daily operation of the City's Animal Adoption Rescue Shelter. Currently serving in Place 1 is Jed Ford, DVM and serving in Place 3 is Joann Stout, Neighborhood Services Director. Both of these positions are two -year terms of office. Recommendation: To reappoint Dr. Jed Ford to Place 1 and Joann Stout to Place 3, terms expiring June 30, 2009. CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 8 -27 -2007 Presented by: Agenda No. F.6 Subject: CN 2007 -072 Appointments to the Red Light Camera Advisory Committee On July 23, 2007 Council passed Ordinance No. 2946 amending Article X of Chapter 54 of the North Richland Hills Code of Ordinances to conform to the requirements of Chapter 707 of the Texas Transportation Code as enacted by the Texas Legislature, 80th session. This change brought the City's Automatic Traffic Control Signal Program into compliance with State law. One of the changes requires the appointment of a citizen advisory committee to be known as the "Red Light Camera Advisory Committee ". In accordance with State law, Ordinance No. 2946 created the committee and provided that the committee "shall consist of eight persons serving for one year terms expiring in June of each year, and the members of which shall consist of one person appointed annually by the Mayor and one appointed annually by each member of the city council." The purpose of the committee is to advise the City Council on the installation and operation of a photographic traffic signal enforcement established under Article X of Chapter 54 of the North Richland Hills Code of Ordinances. The Mayor and Council members have submitted the following names for appointment to the Red Light Advisory Committee: Mayor Trevino Mike Witt Councilman Lewis Tito Rodriguez Councilman Sapp Scott Wood Councilman Barth Steve Koons Councilman Whitson Tom Lombard Councilman Turnage Pam Hansen Councilman Welch Mike Shingler Mayor Pro Tem Compton will provide the name of her appointment at Monday's Council meeting. Recommendation: To approve the appointments to the Red Light Advisory Committee submitted by Mayor and Council. CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 8 -27 -2007 Presented by: Mayor Pro Tern Suzy Compton Agenda No. F.7 Subject: INFORMATION AND REPORTS - Mayor Pro Tern Compton Announcements The North Richland Hills City Council will hold a special meeting at 6 p.m. on Thursday, August 30th. The purpose of this special meeting is to conduct a public hearing on the tax rate. City Hall and other City Offices will be closed on Monday, September 3rd, in observance of the Labor Day holiday. Garbage will be collected by Allied Waste Services. The City of North Richland Hills will host its 16th Annual Business Appreciation Luncheon on Friday, September 14th. The guest speaker will be Congressman Michael C. Burgess. Invitations are being mailed to local businesses. For more information, please call the Economic Development Department at 817- 427 -6090. Kudos Korner Every Council Meeting, we spotlight our employees for the great things they do. David Smith, Fire Department An e -mail was received from a resident thanking David for the excellent manner in which he instructed a CPR Class. He was very well informed and presented himself in a professional manner throughout the entire class. The resident recommends that all residents who are interested in CPR certification take part in this worthwhile class. Department: City Secretary Presented by: Subject: Adjournment CITY OF NORTH RICHLAND HILLS Council Meeting Date: 8 -27 -2007 Agenda No. F.8