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HomeMy WebLinkAboutCC 2016-02-22 Agendas alk r 4 RZ H NORTH RICHLAND HILLS CITY OF NORTH RICHLAND HILLS CITY COUNCIL AGENDA 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TX 76180 MONDAY, FEBRUARY 22, 2016 WORK SESSION: 5:30 PM Held in the City Council Work Room CALL TO ORDER 1. Discuss items from regular City Council meeting. 2. Welcome and introduction - public official, public employee or citizen. 3. Presentation of Police Department 2015 Annual Report. 4. Presentation of 2015 Racial Profiling Report. 5. Presentation of Fire Department 2015 Annual Report. 6. Discuss possible revisions to residential construction standards contained within Chapter 118 of the City Code (Zoning Ordinance). EXECUTIVE SESSION The City Council may enter into closed Executive Session as authorized by Chapter 551, Texas Government Code. Executive Session may be held at the end of the Regular Session or at any time during the meeting that a need arises for the City Council to seek advice from the city attorney (551.071) as to the posted subject matter of this City Council meeting. 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. 1. Section 551.071: Consultation with City Attorney to seek advice about pending or threatened litigation or a settlement offer - 1) Cause No. 348-283603-16; and 2) State of Texas - Loop 820 expansion and associated right of way. 2. Section 551.072: Deliberate the purchase, exchange, lease or value of real property - 1) West of Davis Boulevard at Northeast Pkwy, 2) SE Corner Rufe Snow & Loop 820 and 3) NW Corner Rufe Snow & Glenview. Monday February 22, 2016 City Council Agenda Page 1 of 4 REGULAR MEETING: Immediately following executive session (but no earlier than 7:00 p.m.) Held in the City Hall Council Chambers A. CALL TO ORDER A.1 INVOCATION - COUNCIL MEMBER LOMBARD A.2 PLEDGE - COUNCIL MEMBER LOMBARD A.3 SPECIAL PRESENTATION(S) AND RECOGNITION(S) A.3.1 Recognition of North Richland Hills Police Department A.3.2 Recognition of North Richland Hills Library presented by Curren McLane, TMLDA Member and Director of the Azle Public Library 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. A.5 REMOVAL OF ITEM(S) FROM CONSENT AGENDA B. CONSIDER APPROVAL OF CONSENT AGENDA ITEMS B.1 Approve minutes of the February 8, 2016 regular City Council meeting. B.2 Reschedule the May 23 City Council meeting to May 16, 2016. B.3 Authorize the City Manager to enter in to a mutual aid agreement with the participating agencies of the North Central Texas Public Works Emergency Response Team (PWERT). B.4 Approve Resolution No. 2016-010, a Municipal Setting Designation (MSD) Application to the Lennox Ind. B.5 Consider authorizing city manager to execute a 36-month copier services lease agreement with Ricoh USA in an amount of$65,889.12 per year C. PUBLIC HEARINGS C.1 RP 2015-10 Public hearing and consideration of a request from Winkelmann & Associates for a Replat of North Tarrant Marketplace Addition on 27.131 acres located in the 9100 block of North Tarrant Parkway. CONTINUED FROM THE FEBRUARY 8, 2016 CITY COUNCIL MEETING. C.2 ZC 2015-24, Ordinance 3395, Public Hearing and consideration of a request from Dunaway Associates, LP for a revision to Planned Development 36 (PD-36) located in the 9000-9100 blocks of North Tarrant Parkway including adjacent parcels on Davis Boulevard and Precinct Line Road. C.3 SUP 2015-08, Ordinance 3396, Public Hearing and consideration of a request from USA Shade & Fabric Structures for a variance to the masonry requirement for proposed shade structures at 7769 Boulevard 26. Monday February 22, 2016 City Council Agenda Page 2 of 4 CA Consider Resolution No. 2016-011, Public Hearing and consideration of the 42nd Year Community Development Block Grant Program. D. PLANNING AND DEVELOPMENT E. PUBLIC WORKS E.1 Consider Resolution No. 2016-008, eminent domain for a drainage easement, located west of Steeple Ridge, and authorize the City Manager to execute a City / Developer Agreement with Safeway Consulting to recover the costs associated with all eminent domain proceedings for the drainage easement. F. GENERAL ITEMS F.1 Receive Fiscal Year 2015 Audited Financial Report. F.2 Consider Ordinance No. 3393, authorizing the issuance Of "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2016" in an amount not to exceed $6,000,000; providing for the payment of such obligations by the levy of an ad valorem tax upon all taxable property within the City and a limited pledge of the net revenues of the City's waterworks and sewer system; and resolving other matters incident and relating to the issuance, payment, security and delivery of such obligations, including delegating certain matters to an authorized City official within certain specified parameters. F.3 Consider Ordinance No. 3394, authorizing the issuance Of "City of North Richland Hills, Texas, General Obligation Refunding Bonds, Series 2016" in an amount not to exceed $3,130,000 to achieve debt service savings for the City; levying a continuing direct annual ad valorem tax for the payment of such Bonds; and resolving other matters incident and related to the issuance, sale, payment and delivery of such Bonds, including delegating certain matters to an authorized City official within certain specified parameters. G. EXECUTIVE SESSION ITEMS - CITY COUNCIL MAY TAKE ACTION ON ANY ITEM DISCUSSED IN EXECUTIVE SESSION LISTED ON WORK SESSION AGENDA H. INFORMATION AND REPORTS - COUNCIL MEMBER BARTH H.1 Announcements. I. ADJOURNMENT Monday February 22, 2016 City Council Agenda Page 3 of 4 CERTIFICATION I do hereby certify that the above notice of meeting of the North Richland Hills City Council was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on February 19, 2016 at 3:00 PM. City Secretary This facility is wheelchair accessible and accessible parking spaces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at 817-427-6060 for further information. Monday February 22, 2016 City Council Agenda Page 4 of 4 D lqmk 1W Rib "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Discuss items from regular City Council meeting. Presenter: Alicia Richardson, City Secretary Summary: The purpose of this item is to allow City Council the opportunity to discuss any item on the regular agenda. General Description: The purpose of this standing item is to allow City Council the opportunity to inquire about items that are posted for discussion and deliberation on the regular City Council agenda. City Council is encouraged to ask staff questions to clarify and/or provide additional information on items posted on the regular or consent agenda. City Council may also elect to move items from the regular agenda to the consent agenda upon receiving clarification from staff on posted regular agenda items. Packet Pg. 5 D lqmk 1w Rib "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Welcome and introduction - public official, public employee or citizen. Presenter: Mark Hindman, City Manager Summary: Introduction of public official, public employee or citizen in attendance at the meeting. General Description: The purpose of this item is to provide City staff or City Council the opportunity to recognize and introduce a public official, public employee or citizen in attendance at the meeting. Packet Pg. 6 D "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Presentation of Police Department 2015 Annual Report. Presenter: Summary: The North Richland Hills Police Department Annual Report for 2015 provides a snapshot of the Police Department's activity during the calendar year. It shows a variety of activity measurements indicating the effort of the dedicated Police Department employees. Chief Perdue will provide some highlights from the report and the work that occurred in the past year. General Description: While there was a slight increase in UCR Part I offenses in 2015 compared to 2014, comparative data over the past ten years indicates the 2015 numbers are in line with the overall trend. However, significant decreases were seen in burglaries and aggravated assaults. Although an overall 13% increase was experienced in Part 11 offenses when compared to the previous year, the 37% increase in narcotics offenses translates to increased enforcement. During 2015, we continued to improve both our efficiency and effectiveness in serving our community. We strengthened partnerships with community members and continued to improve the delivery of shared services. Our commitment to excellence in all police services was demonstrated through several key actions and recognitions we received during 2015. Our programs and accomplishments are detailed within the attached report. Packet Pg. 7 3.a Ln CL Ln rr/ pOP•^wwr�.l ��� :�j�pr�Yri�+i�dh7�NAJY9M4llJlJ"Ixs;NJnl Ifs rrr a m� °0°1f 100i01 �I1�IIIIIII���I�IIIII�II��II�III����II�IIIIIIIIIIIIII�IIII�IIIIIIIIIIIIIIIIIIPYI�� � �°��� Allllh�il �otlu 6U Packet Pg. 8 u Our Philosophy III III � II VIII We are committed to maintaining high ethical standards by conducting ourselves with integrity, compassion and accountability. m We, both as individuals and as an organization, strive to be leaders in ND g our profession and in the community we serve. Effective II IIII ° leadership will model the way, enable others to act and inspire a shared vision. '' We endorse the principles embodied in our Constitution. We respect and protect p p t. the rights of all citizens, and we endeavor to ensure the safety, security and protection of life and property. Integrity is central to the values we embrace and establishes the foundation for community trust. t. We are accountable to each other and to the citizens we serve; and we expect ethical, legal and moral behavior in all aspects of our lives. We strive to maintain the highest quality of life for all that reside within and visit our community. Our values guide our work and decisions, help us contribute to the quality of life and promote a positive work experience. We are dedicated to preserving the goals and values that make North Richland Hills the "City of Choice." 2015 Annual Report 3.a / u 1 is 2015 was a difficult time in law enforcement as events across the country pushed our profession to the forefront of an ongoing debate about the proper role of the Police in a free society. More than ever, we received a huge outpouring of encouragement from our citizens. I receive emails, phone calls and letters each day to say thank you for a particular act of kindness or just to show appreciation for the job we do. We talk a lot about service to our community, and I am thankful for the professionalism, compassion, empathy and personal integrity the men and women of this department bring to their job every day. This annual report highlights their exceptional work and �II;IIIIIII I�I'l will give you an overview of some of the milestones we achieved. 0 a True community policing relies on building partnerships with those the police serve so as to better identify problems and to develop and evaluate an effective response. Working in this partnership, we introduced several new programs in 2015. 0 The UNIDOS Program is designed to act as a resource center for Spanish speaking residents and to Ln provide assistance in areas of importance to them. This outreach program offers a two-way communication between the Police Department and the Hispanic community and promotes trust between the Police and those we serve. 4) 0 Chaplains working in specialized industries are not a new concept. In fact, police,fire, and military chaplains have lived and worked among those dedicated to sacrificial public service for ages. Several years ago we recognized the need for an active, organized chaplaincy program. In August 2015,the 4) Police Department saw its long-awaited, highly anticipated Chaplaincy Program become a reality . further strengthening our ability to serve.The program's purpose is to provide counseling, spiritual CL guidance, and other emotional support to all members of the Department and their families and, when requested,to interact with members of the public during a response to critical or traumatic CO incidents. Ln 0 Today's social media has become an invaluable tool for police departments around the country.There are many benefits of having a department-monitored social media presence. It can keep the general public in the loop day in and day out, it can be used as part of a public information strategy, and it helps to humanize the officers. Facebook and Twitter are new channels of communication that allow us to demonstrate what the department is doing and highlight efforts that may be routinely overlooked by traditional media outlets. We eagerly await moving into our new facility in early 2016. The new North Richland Hills City Hall complex CL includes a new police building to replace our existing one that no longer meets our needs. We are grateful to our citizens for their support of this facility and believe it will create a positive reflection for our City. 4) I am very proud of the members of our department and for all they do to serve our community.They embody the very best of what the law enforcement profession represents and continue to be committed to the principles and values contained in our Department's Vision and Mission statement. It remains my honor to represent them and the work they perform. � I Jimmy Perdue Chief of Police Packet Pg. 10 3.a j ar w Ln /' .ii / //✓ 1 i i�//'v /� % fir', /. ✓! CD Cm Captain "I`rtOrwtlirtall C Irt alter OR*Florm,10 �0 CL Hiring Red Lill Camara CO g tl i It M00114 R"10019 I rrr Mlt t management Floal 1 of pmpody&squipownt Cm Alt Ca,MIMW*' a�OO,*f Todd p Iapk llladparm lltal ri"�mltlltdtt " 4glt0tX warlrttttlt at � wrwt gra galmm lon joci l gltl ,Crlrme Pre""No" MAriaw � SWAT,honor GusnA tl"mlum ,Summer Camp 4"00(W N�Irtlra l�r 10 Unit,PWs C CL eosallov Guards loam dug sera � � Ow ;, urNaarpmtr 1 4i a Nr�„ r ndy 04"toy dpi Laul Hill � cttaaalt tlam�rtt //� Packet Pg. 11 O HI F SE L - Ln CL Co Ln CD CM CL r � I E Packet Pg. 12 Police Administration 0 PO CE The Operations Bureau, under the command of Assistant , Chief Mike Young, is staffed by two captains, four lieutenants, i f 12 sergeants, 78 police officers, and 25 civilian personnel. This y bureau is responsible for coordinating the activities of the Uni- formed Services and Criminal Investigations Divisions. , /// The Uniformed Services Division consists of two Sections—the PatrolI Section and the Traffic Section —and five specialty units: Bicycle Patrol , Honor Guard, K-9, Public Service Officers, and Special Weapons and Tactical Team (SWAT). This division is responsible for controlling and preventing crime through regular patrols, responding to calls for service, apprehending offenders, enforcing criminal and traffic laws, conducting preliminary investigations while working with citizens in a preventive approach to problems within the community. The Traffic Section is tasked with enforcement of the traffic laws throughout the city, including city ordinances regulating traffic and parking violations. This section conducts follow-up investigations on hit and run cases, works special city events, and also re- sponds to traffic complaints in congested areas, dangerous locations and as called upon by citizens within the community. Assigned to the Traffic Section are 17 school crossing guards who work all the crossing guard posts throughout the city. A new program with the Traffic Section in 2011, the Commercial Vehicle Enforcement (CVE) Program is k charged with keeping our roadways safe for all motorists by monitoring and inspecting the commercial vehicles that utilize these same roadways for transporting goods and services. The CVE Program focuses directly on traffic safety issues that have the great- est potential to harm our citizens by hazardous spills, traffic fatalities, and the degrada- tion ' ���Uwwwww of city infrastructure. wwww wwww Public Service Officers are civilian employees in the police department who complete tasks that do not require the services of a police officer. The programs purpose is to create greater efficiency and effectiveness of the department's police officers, allowing them more time to address neighbor- hood concerns and overall police services to the community. Public Service � � y{I'NNV'9WMVwOD!M'1�0 6A?uV v D " D a„"/r/1//1���IA ” Officers work closely with citizens and the beat officers helping to address , ��y»�1<< ' problems within the community. The contemporary concept in policing— referred to as Beat Management— extends the commitment by our police officers to best serve our community while also forming a partnership with our citizens. District assignments create a familiarity between the beat officer and the community served. The officers are encouraged to stop by and interact with students in schools on their districts, meet residents, attend homeowner's associations meetings, and attend neighbor-hood watch meetings. Dedicated Patrol Beat Assignments create more familiarity for the officers with the unique qualities that exist through- out the individual neighborhoods. liiiiilm El, k> ,naw i wk.°N,uiaau„�M�„ YY / V ry _ 1' /%% �i n � I Packet . , fl In the Criminal Investigations Division, Detectives receive �J general training in all aspects of criminal investigation as well as specialized training in areas that are specific to each ,;j/ detective. As a component of Beat Management, the general assignment detectives serve as district liaisons for all beat officers. The Crimes Against Persons Section investigates causes of all violent crimes r,+I wWWWWWw l U assauult, family violence and juvenile crimes. Specialized �r:1 investigation of activities involve juvenile offenders and crimes against children.The Property Crimes Section investigates property-related offenses including auto theft, burglary and theft. Detectives perform follow-up investigations such as recovery of stolen property and arrest of fugitives. The detectives in the Financial Crimes Unit focus specialized resources in the following areas: fraud investigations, credit card abuse, organized crime k ......ww.w.w ........... investigations, embezzlement and asset forfeiture. The two specialized units within the Division are the Crime Scene Search Unit and the Special Investigations Unit. The Crime Scene Search Unit collects and processes evidence from NRH crime scenes including murder, criminal mischief, burglary, robbery, forgery and assaults. This unit also supervises the multi-agency Automated Fingerprint Identification System (AFIS). j i� The Special Investigations Unit investigates narcotic offenses in North Richland Hills as well as working closely with Federal and State agencies in an attempt to reduce the flow of narcotics into our community. Additionally,, specific multi-agency task force assignments extending beyond local ......... ....... jurisdiction promote cooperative and coordinated drug enforcement efforts drawing from the expertise of state and local law enforcement. Crime Analysis is a law enforcement function involving systematic analysis for identifying and analyzing patterns and trends in crime. Information on patterns can help law enforcement agencies deploy resources in a more effective manner and assist detectives in identifying and apprehending suspects. INVESTIGATIONS 111 /� . 0 0 O 4,000 Q 3,000 1114 � % //r. � 1111 Assigned i IIIIIIIII Cases Cleared I 2,000 1,000 1 2012 2013 1 1 Y%m wwwwww . 1 Ill��l���lll ll�lllq III The Management Services Bureau is under the and of Assistant Chief Rick Scott. This Bureau is responsible for coordinating the activities of the Administrative Services Division and the Technical Services Division. In addition to the assistant chief, the bureau is staffed by err Nil one captain, two sergeants, seven police officers, one civilian division coordinator and 64 full-time civilian personnel The Administrative Services Division oversees ` lil �lalll�l media relations, hiring, the Training Section, and the Community Services Section. School Resource Officers are charged with the security and primary law enforcement responsibilities in the area schools. The management of awarded state and federal grants is also a responsibility of this division. Charitable outlets and grant funding sources are sought after to build new service programs and supplement police resources not otherwise available to the department. Crime prevention and community relations are the top priorities of the Community Services Section. This section also provides community outreach, partnership, and interaction through the administration of programs such as: 0 Crime Victim Liaison Assistance 0 Volunteers in Police Service 0 Youth Summer Camp 0 Heroes and Helpers 0 Citizen's Police Academy 0 Citizen's Police Academy Association Alumni 0 Neighborhood CrimeWatch 0 Crime-Free Multi Housing The North Richland Hills Police Department launched a new program in 2015 — the UNIDOS Program. This is a community outreachr o�a�" ��11 program geared toward improving the quality of life for Spanish- speaking residents. The intent of the UNIDOS Program is to act as a resource center for Spanish-speaking residents and present ,��- 1 information and provide assistance in areas of importance to the i �J Hispanic community. The Spanish-speaking community is invited to `/� attend informational meetings that are conducted entirely in Spanish. .w The Crime Victim's Liaison Program is tasked with public awareness of domestic violence issues focusing on an aggressive public campaign to educate our communities on domestic violence issues and the impact on families. The Crime Victim's Liaison teaches informative and awareness sessions to the partner cities' Citizen Police Academies and attends public safety forums and community events whenever possible, speaking to women about domestic violence issues and the resources available to them. By providing awareness and safety plan information, iwwwwww ��� wwwd �....... ! we hope to reduce the occurrences of domestic violence within our communities. The Training Section coordinates and delivers advanced, continued training opportunities and professional development of all department personnel. Efforts to conduct personnel development include annual weapons qualifications, a 40 hour in-service class, maintaining all licenses required or issued by the State of Texas, and roll-call training. Under the direction of the Training Section, the departmental fitness program is managed by a fitness program leader and instructed by four voluntary law enforcement fitness specialists. 2015 Annual Report I Packet . , Oversight of the police fleet and related equipment in coordination with the city's Equipment Services as well as l management of the Red Light Camera Program are responsibilities of the Technical Services Division. Within this Division, the following four sections provide the necessary civilian support functions that are �l vital to the successful day-to-day operation of the police department. J( The Communications Section is the public's link to police, fire, ambulance, and City emergency and non-emergency services.The primary responsibility of the Communications Section is to provide citizens with the best possible response to their request for information or the need for public safety services — police, fire, ambulance, and emergency equipment.This section provides accurate statistical information for administrative use, along with working closely and effectively with all personnel in the police, fire and city departments, as well as outside agencies. t, The Detention Services Section provides the detention, control and care of all prisoners in the jail facility. ,w..... Prisoners are booked in accordance with accepted procedures and held until aappropriate terms of release are satisfied. An average of 19 new prisoners are booked in daily in the detention facility, and over 27,000 prisoner meals are served annually. This section is also responsible for proper recording and testing of suspected DWI �OPP violators through the department's State Certified Intoxilyzer Program. . r After years of preparation, an agreement between the cities of - ..............-............ ........ North Richland Hills, Watauga, Haltom City and Richland Hills toJw share these two services became fully implemented in 2012. The Communications and .; Detention Facility Shared Services Program has improved efficiency and cooperation between the cities and has saved taxpayers' money. This long-desired operation was achieved by eliminating unnecessary redundancies and compressing excess capacity in physical facilities and personnel.The City of North Richland Hills serves as the host agency for these shared services. w is The Property Management Section orders and manages the inventory n, and issuance of all police equipment department-wide. The section provides the storage, safekeeping and disposal of all evidence and found or confiscated property taken in by police personnel. All property is coded, logged in and stored until its legal release, auction or destruction.This Section maintains all the records critical to the proper handling of p p g ;w . evidence along with documents required for the ultimate disposal of all property under its care, custody and control. The Records Section serves as the record liaison for the public, the State and the FBI. This section is responsible for: ♦ Processing and retaining all police department records ♦ Managing the automated records reporting system ♦ Maintaining the record scanning program for archived record retrieval °i�` ♦ Responding to open records requests, and H; ♦ Providing citizen assistance via telephone or in person. 2015 Annual Report Packet . , 3.a • - The Bicycle Patrol Unit is an'additional facet of the department's proactive approach to faw enforcement and and service to the community.These �,� officers are heavily involved in community policing fl pr O S4atis4ical Data Ln CD CL Co Ln CD CL 1TTTTTTTT!! MEMOS; O O maim �mmmmmmmmmmmmmm�4�:�`s � � r����' i lili�l�f�l�il�ii � � I VIII Il llal�llllllllllllllllllllllllllll _ III �uuuuuuuuiiii �I��IIIIIIIIIIIIIIII�IIIIIIIIIIIIIIII� �I IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Ln cm CL co Ln cm CL 18,697 0 2195 11!11 205 Mnuel Ropor! 0 O Statistical Data '"y" "s"' ��� ii'� Illlllll 111711 IIIII�I I �II( Il�ll�l I� *Census Year 0. 2007 ,ao. 2009 IIIIII' ��mm��iuuui% CM CID 0 CL 0 3.a 0 Ln • — 111 • —— • • — .• •—• — — • — • — •. — • — • — — T- ,,,,, rrmu�,,FC�iri�/IC/ad!ir�rr�riroi j C. co Ln CD q �lr Ce9 CL l�` o I %J i f a I�VI way' N I IJu r r r i /%l% f1111111,r Packet Pg. 22 3.a BACKING THE BLUE As a demonstration of solidarity among Texas taw enforcement and to mourn the loss of Harris County Sheriff Deputy Darren Goforth, Governor Greg Abbott issued a statewide catt on September 4. 2015, to stand with taw enforcement in Texas, asking that communities across Texas support the Back the Btue cause for unity and remember the essential rote that taw enforcement ptays in keeping Texas safe and strong. pus p / / I / d / / Ln cm RMOMOMOMOMN �S 1 / / 0 CL CO Ln CM CL r ✓.%/�„!J%/fir%//�//a���s»>ti�,;.,ii%iiiiiilll�%l/r/iJl1 �r,'c ,r „;,�,,;� � I �j/// /, //� / a. '�� � �ryry M1OV�di� ��lll��llll�l�l i I it LA D Packet Pg. 23 3.a North Richland Hills City Hall 4301 City Point Drive MA 1-12103.11 1 1 - . 0 Nr�&�'S al r w ✓i rrj o // 21 i Ln ✓>/ � ,v, ���� r��� /� 'i l�D)>�Dl�'a� uuo �✓'I/l;!/fJ%r r//�li /, I, C'e9 MR WK �r �� �� � q �s ���%j� �i Sri �� ✓ �%/� w�� l� ���� a r � 2 Rendering 2013 Apri12014 CL CO Ln CM or CM ✓ y iii w i%G � l � N N r✓ s � CL D- r ✓ / �i ran t I ��r tai NJ'ii ecember 2015 Packet Pg. 24 D lqmk� 1W Rib "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Presentation of 2015 Racial Profiling Report. Presenter: Jimmy Perdue, Director of Public Safety Summary: The Police Department hired Alex del Carmen, PH.D., of Del Carmen Consulting to analyze racial profiling data collected by the Police Department during calendar year 2015. Dr. del Carmen concluded that the North Richland Hills Police Department has complied with the Texas Racial Profiling Law (SB1074). General Description: The 77th Regular Session of the Texas Legislature passed Senate Bill 1074, an Act relating to the prevention of racial profiling by certain peace officers. This law specifically prohibited racial profiling by peace officers in Texas. This law also added, among other things, requirements for the training of peace officers. In addition, this law added Section 2.132 to the Texas Code of Criminal Procedure. This statute requires police departments to adopt a policy on racial profiling, which we have done. The North Richland Hills Police Department provided the required training to all its members before the statutory deadline of September 1, 2003. Most Patrol Section officers received this training before January 1, 2002 when key portions of the statute took effect. The Police Department continues to train new officers. The required policy on racial profiling must include a report to the governing body of each county or municipality served by the agency. The annual report must contain, "information relating to traffic stops in which a citation is issued and to arrests resulting from those traffic stops, including information relating to: a) the race or ethnicity of the individual detained; and b) whether a search was conducted and, if so, whether the person detained consented to the search." If the Police Department did not have video-recording equipment in all patrol cars and audio-recording devices for motorcycle officers, the required data collection and analysis would be much more extensive. It was reported to Dr. del Carmen by the Police Department that during calendar year 2015, one racial profiling complaint was received and it was deemed as unfounded by an internal investigation. The analysis of the 14-year traffic-related contact data suggested that the North Richland Hills Police Department has been, for the most part, consistent in the racial/ethnic composition of motorists it comes in contact with during a given year. The consistency of contacts for the past 14 years is in place despite the fact the city demographics may have changed, thus, increasing the number of subjects likely to come in contact with the police. Packet Pg. 25 4.a Comparison of Fourteen-Year Traffic and Motor Vehicle-Related Contact Information (111102---12131 115) Race/Ethnicity* Motor Vehicle-Related Contacts (in percentages) (10) (11) (12) (13) (14) (15) Caucasian 82 75 74 76 75 78 African 5 9 10 10 11 10 Hispanic 9 12 12 11 11 8 Asian 2 2 3 3 2 2 Native American .1 .2 .2 .2 .3 4 Middle Eastern .09 .8 1 .9 1 8 Other .4 0 .3 0 0 0 Total 100** 100 100 100 100 100 *Race/Ethnicity is defined by Texas Senate Bill 1074 as being of a "particular descent, including Caucasian, African, Hispanic, Asian, Native American and Middle 4) Eastern". Figure has been rounded. CD Comparison of Fourteen-Year Traffic and Motor Vehicle-Related Search Information (111102---12131 115) a. Race/Ethnicity* Motor Vehicle-Related Searches (in percentages) (10) (11) (12) (13) (14) (15) Caucasian 74 74 60 67 61 71 cm African 15 12 17 16 16 15 cm Hispanic 11 11 21 16 20 12 Asian .4 2 1 .9 3 1 Native American .2 0 0 0 0 6 0 Middle Eastern 0 .5 .3 .3 .6 0 Other 0 0 0 0 0 0 Total 100** 1 100** 1 100 100 100 100 *Race/Ethnicity is defined by Texas Senate Bill 1074 as being of a "particular descent, including Caucasian, African, Hispanic, Asian, Native American and Middle CL Eastern". Figure has been rounded. Comparison of Fourteen-Year Traffic and Motor Vehicle-Related Arrest Information (111102---12131 115) Race/Ethnicity* Motor Vehicle-Related Arrests (in percentages) E (10) (11) (12) (13) (14) (15) Caucasian 73 78 57 63 59 65 African 15 12 15 18 16 12 Hispanic 11 8 27 17 22 22 Asian .4 1 1 1 3 .8 Native American .1 .2 0 0 0 .2 Middle Eastern 0 .2 .3 0 0 0 Other 0 0 0 0 0 0 Total 100** 1 100** 1 100 100 100 100 *Race/Ethnicity is defined by Texas Senate Bill 1074 as being of a "particular descent, including Caucasian, African, Hispanic, Asian, Native American and Middle Eastern". **Figure has been rounded. Packet Pg. 26 D lqmk 1W Rib "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Presentation of Fire Department 2015 Annual Report. Presenter: Stan Tinney, Fire Chief Summary: The Fire Department FY14-15 annual report will be presented by Fire Chief Stan Tinney. It includes a brief summary of response statistics, personnel and accomplishments. General Description: The Fire Department FY 14-15 annual report is attached. Packet Pg. 27 5.a Narth Richland Hills Fir& Rescue ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................. 20.15 Year in Review Stan Tinney, Fire Chief North Richland Hills Fire-Rescue is very fortunate to have the finest men and women in the fire service serving our community. We are equally fortunate to serve a great community supported by outstanding city management and elected officials. Our department is able to provide the highest level of service possible because of the support and investment the community provides. 0 North Richland Hills Fire-Rescue serve those who live, work, and travel through our city from four fire stations, which are all staffed 24 hours a day by professionally trained firefighters and paramedics. Although the department continues to evolve with the needs of the community, the North Richland Hills Fire Department of today remains Ln committed to helping people and protecting our first-class city. CM Our Mission Answering the call to strengthen our community's quality of life through dedicated service, courageous members, strong leadership and honoring tradition. LL co Ln ��� uuuugiip, � a® i 3 Courage * Compassion * Leadership * Dedication * Honor Page 1 Packet Pg. 28 5.a Calls for Service: In 2015 total calls for service increased 5.96%. Since 2010 the average annual increase has been 5.94%. • Total Calls 7,622, an increase of 5.96%. • EMS calls increase by 5.17% and totaled 5,311 calls. • Structure fire calls have decreased slightly for the second straight year. • Fire Alarms, Service Calls, Good Intent and Special Operation calls increased again in 2015 at a rate of 10.35% 9000 Calls for Service 1 8000 .. .. .. .. .. .. e2015 .. 7014 7193 7000 6528 .... 6000 5740 Ln 5000 4000 3000 2000 1000 LL 0 ems 2010 2011 2012 2013 2014 2015 a Response Time Response times are broken into three categories; call processing (from the initial contact with the call taker until the call is dispatched), turnout(from the time crews are notified of the call until the unit starts moving), travel (drive time to the incident). These categories are totaled ,,n to give the overall response time. All categories remained virtually unchanged in 2015 with a cm total response time average of 6:09. Mutual Aid Trends Mutual aid is defined as given or received. When NRH units respond to a mutual aid city the aid is identified as "Given", when mutual aid units respond to our city it is identified as < "Received". We continue to see an increase in both providing mutual aid to others and receiving mutual aid. Courage * Compassion * Leadership * Dedication * Honor Page 2 Packet Pg. 29 5.a Given Aid %change Received Aid %change 2012 2013 2014 2015 2012 2013 2014 2015 Keller 26 39 27 36 33.33% 4 7 9 9 0.00% Richland Hills 55 130 107 199 85.98% 10 59 52 79 51.92% Watauga 56 158 160 317 98.13% 13 27 40 50 25.00% Haltom City 8 41 54 41 -24.07% 2 32 21 25 19.05% Hurst 35 38 33 61 84.85% 9 23 20 48 140.00% Colleyville 3 10 3 6 100.00% 3 3 3 9 200.00% Other 0 8 3 11 266.67% 4 1 1 15 1400.00% 183 424 387 671 73.39% 45 152 146 235 60.96% North Richland Hills proudly assist all of our neighbors who request assistance. In 2015 aid given to others increase by 73% (284 calls) and aid NRH received from others increase 61% (89 Ln calls). 8.8% of our overall calls for service are to provide mutual aid to our neighbors. Q CM Response Analysis Station response reporting indicates call volume in that station district. Station 5 (fire admire station)was reactivated in December and the single month chart below indicates the initial impact of station 5. 2 3000 CIO Response by District 2500 2000 111111111112012 1500 1111111111112013 Ln n 111112014 1000 CM 1/m/nozi 1111111111112015 500 E 0 Station 1 Staiton 2 Station 3 Station 4 Station 5 Courage * Compassion * Leadership * Dedication * Honor Page 3 Packet Pg. 30 5.a 250 Nov-Dec comparison after opening station 5 200 150 November 100 December 50 ,- 0 LI p Station 1 Staiton 2 Station 3 Station 4 Station 5 Ln Staffing will increase to three personnel in March 2016 and the use of the cross-staffed cm medic at station five will begin as soon as CAD is capable of recommending these units. Training Training is conducted by our internal Training Division, contract classes with Tarrant 0 County Community College (TCC) and a variety of other classes. We provide continuing 2 education for both fire and EMS training. Advanced EMS skills are taught and certifications `L maintained. NRHFD continues to exceed the minimum number of recertification training hours 4M for both fire and EMS. North Richland Hills, Haltom City, Watauga and Richland Hills began training all company officers and above in a new incident command system called Blue Card in 2014. NRH completed all officers in the training program in early 2015. This system provides a consistent 2 method of establishing command and communicating on the fire ground. This has improved communication and efficiency on incident scenes. We are seeing more departments use this system and expect it to eventually be the standard for North Tarrant. Ln oo cm NEFDA NRHFD continues to be an active member in NEFDA. NRH members have served as, and continue to serve as Secretary/Treasurer for the organization. Chief Tinney serves on the board, Battalion Chief Goggans is the coordinator of the bomb squad, Battalion Chief Brown is the hazmat coordinator and Battalion Chief Rainwater assists with the management of the technical rescue team. Overall we have 47 members of our department active in a NEFDA special operations team. Fire Marshal The Fire Marshal Division has conducted 690 fire inspections, investigated 18 fires and responded to 118 fire alarm activation problems. 80% of the 377 plan reviews conducted were completed within 10-days. Annual inspections have been conducted on all gas wells and regular noise monitoring is conducted as needed. Courage * Compassion * Leadership * Dedication * Honor Page 4 Packet Pg. 31 5.a Equipment Purchase A LUCAS device has been placed on all three front-line ambulances. This device is used to perform compressions on patients in cardiac arrest. In the short time the devices have been in service we have seen great results. Community Health Paramedicine The Community Health Paramedicine pilot program concluded in 2015. The results of the pilot verified the need to continue an ongoing program to monitor citizens who, for a variety of reasons, need to use the emergency medical system on a regular basis. As we start to implement a permanent approach to dealing with these needs in our community we will continue to identify these citizens by crew referrals and monitoring patients who use the system three times or more in a three month period. We have found the majority of these situations can be 0 improved by using local resources, minor assistance, education and minor medical care. Personnel We had four additions to the team in 2015 due to vacancies created by retirements and < Ln resignations. Three members retired and two resigned to take positions in Denton, one resigned to take a position in Arlington and two resigned for the private sector. We ended the year with cm four vacancies which were filled in early January. E 2015 Retirees • Captain David Rawson began his career with the North Richland Hills FD on April 14, 1980. Dave rose through the ranks and was promoted to the position of Captain in `L January of 1995. Captain Rawson's certifications include Advanced Firefighter, Fire co Inspector Basic, Fire Service Instructor II, Fire Officer II, Hazardous Material Technician, and an Emergency Medical Technician. Captain Rawson retired after 35 years of service. > 2 E • Assistant Fire Chief Marcum began his career with the North Richland Hills Fire Department in October of 1985. Chief Marcum promoted to the position of Emergency , Management Coordinator in October 1988. Kirk was promoted to Assistant Chief/Fire Ln Prevention in March 2001, serving as the City's Fire Marshal, and in 2012, Chief cm Marcum transferred to his final position as the Assistant Chief of Operations. Chief Marcum's certifications include Master Firefighter, Advanced Inspector, Advanced Arson Investigator, Fire Officer II and Fire Service Instructor. Chief Marcum was certified as a Peace Officer in January 1993 and holds a Master Peace Officer certification. Chief Marcum retired from service after serving 30 years. • Driver/Engineer Kent Carter was hired by the North Richland Hills Fire Department on August 3, 1987 as a Firefighter/EMT. In August, 1999, Kent was promoted to Driver Engineer. Driver/Engineer Carter's certifications include Driver Operator—Pumper, Advanced Firefighter, Basic Inspector and Fire Service Instructor L Driver Engineer Carter retired after 28 years of service. Courage * Compassion * Leadership * Dedication * Honor Page 5 Packet Pg. 32 5.a Promoted in 2015 • Assistant Fire Chief Kenneth Rawson began his career with the North Richland Hills Fire Department as a Firefighter/Paramedic on October 12, 1988. He served in the Prevention Division as an Inspector/Investigator from August 2007 until he was promoted to Driver Engineer in December 2009. Kenneth returned to the Operations Division and was promoted to Captain on April 2012. Kenneth was promoted to the rank of Assistant Chief on November 6, 2015 and serves as the Assistant Chief of Administrations. He holds Texas Commission on Fire Protection certifications as a Master Fighter, Master Arson Investigator, Master Fire Inspector, Fire Service Instructor II, Driver/Operator-Pumper, Fire Incident Safety Officer, Fire Service Officer IV, Basic Wildland Firefighter and Hazardous Materials Technician. He holds Texas Commission 0 on Law Enforcement certifications as a Master Peace Officer, Instructor Proficiency and Firearms Instructor Proficiency. • Captain David Birdsong began his career with the North Richland Hills Fire Department Ln as a firefighter on June 11, 2007. He was promoted to Driver Engineer on April 17, T_ 2012, and most recently promoted to the rank of Captain on July 1, 2015. Captain cm Birdsong is assigned to the Operations Division. David holds certifications as a Paramedic, Driver/Operator—Pumper, Intermediate Firefighter, Hazardous Materials Technician, Basic Inspector, Fire Incident Safety Officer, Fire Service Instructor I, Fire Officer II and Hazardous Materials Incident Commander. • Driver/Engineer Brian Martin began his career with the North Richland Hills Fire Department as a Firefighter/Paramedic in January 2006. He was promoted to Driver co Engineer on July 2, 2015 and is assigned to the Operations Division. Brian holds certifications as a Driver/Operator—Pumper, Advanced Firefighter, Fire Service Instructor I and Hazardous Materials Technician. °' E Hired in 2015 Ln • Matthew Browne was hired in July 2015 as a Firefighter/Paramedic. Matthew oo previously worked as a Paramedic for Medical Center of McKinney. He also worked as a cm Part-time Firefighter/EMT for Benbrook Fire Department. E • Jed Boyd was hired in October 2015 as a Firefighter/Paramedic. Jed holds an Associate's Degree from Weatherford College. He previously worked as a Firefighter/ < Paramedic for the Decatur Fire Department. • Matthew Dieter was hired in October 2015 as a Fire Cadet. Matt promoted to Firefighter /Paramedic in December 2015. Matthew holds an Associate's Degree from South Plains College. He previously worked as a Paramedic for University Medical Center EMS. • Jason Davis was hired in November 2015 as a Firefighter/Paramedic. Jason attended Sinclair Community College. He previously worked as a Firefighter/Paramedic for Azle Fire Department. Courage * Compassion * Leadership * Dedication * Honor Page 6 Packet Pg. 33 D lqmk 1W Rib "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Discuss possible revisions to residential construction standards contained within Chapter 118 of the City Code (Zoning Ordinance). Presenter: Clayton Comstock, Planning Manager Summary: This discussion item was originally on the January 25, 2016 City Council agenda and was postponed. Staff has been presented with a unique building material that demonstrates some of the same application characteristics of masonry material but not the same visual characteristics. Staff would like to take this opportunity to seek the Planning and Zoning Commission and City Council's continued guidance on the definition of "masonry" as it specifically relates to residential construction in North Richland Hills. General Description: A residential homebuilder in North Richland Hills requested permission to apply a manufactured stone veneer of the "WoodStone Series" by Q.9.!E'onad _.St"or� _If y„iro"dL�(� ��, (visit and explore their website by clicking on the link) to over 15% of a home's facade. The product—which staff will have a sample of at the meeting—is heavier and thicker than a conventional cementitious siding (i.e. Hardieplank® lap siding) that you would see in Hometown. The City has allowed similar products in the past to be applied to residential and commercial structures; but never has a product that looked like wood plank siding but acted like masonry per NRH's definitions been proposed. Packet Pg. 34 D "ArRok., NORTH KIC;HLAND HILLS The manufactured stone veneer material has a wood plank appearance but is applied in a craftsman-like manner, meeting the installation standards for masonry in NRH. Staff is proposing three options for interpreting this and similar materials in North Richland Hills: Option A This is not masonry and should be limited to 15% of a home's fagade. A revision to the definition of "masonry" may be required to further define it as material that has the appearance of brick or stone. Such action would categorize this specific material as "accent" material similar to metal, wood siding, stucco, EIFS or other non-defined materials. Option B This is masonry, but should be limited to a certain percentage of a home's fagade. The product may not be visually offensive and may offer a new and unique look to homes; but a home fully clad in this material may not be in keeping with the spirit and intent of the masonry requirement. In this case, a new material category may be established that allows up to 30% (example) of certain building materials. This would be similar to the recent change to non- residential construction materials, where masonry materials were further categorized into "Group A" and "Group B" materials. For reference, below is the table that was approved by City Council for non-residential construction. Sec. 118-693(a) Required masonry percentage. The minimum required percentage of masonry on the exterior wall surface of all structures located on property zoned for nonresidential uses, as viewed from each elevation, shall be 85 percent and in accordance with the schedule contained in the following Table 6-2. The area of door and window openings shall not be included in the calculation of this requirement. WON- r�r rr r r rr r /i Cfgflt / �O ru�� r.� fiVs. t� Brick Masonry Natural Stone o 0 0 0 Group A Cultured Stone 70% 100/0 20/0 100/o Ceramic Block Alternative Masonry Material Stucco Masonry Group B El FS 0% 30% 0% 50% Concrete Masonry Unit Cementitious fiberboard Accent Metal 0% 15% 0% 15% Wood Tile Packet Pg. 35 D "ArRok., NORTH KIC;HLAND HILLS Option C This is masonry. Homeowners and homebuilders should be allowed to use it on the exterior of their entire house. In this case, an ordinance change may not be necessary and staff will implement the Planning and Zoning Commission and City Council's direction to interpret the material as masonry. Attached to this agenda item for review and reference are the existing Residential Construction standards provided by Article V, Division 4, Subdivision 11 of the Zoning Ordinance. PLANNING & ZONING COMMISSION: The Planning & Zoning Commission discussed this item at their January 21, 2016 Work Session. The general preference given to staff was for Option B. Packet Pg. 36 6.a Subdivision II. - Residential Construction Sec. 118-671.- Required masonry percentage. U) (a) Generally. The minimum required percentage of masonry on the exterior wall surface of all 0 residential primary structures, as viewed from each elevation, shall be in accordance with the 0 schedule contained in Table 6-1. (b) Exemption. An exemption to the masonry requirement shall apply to existing residential structures, including all permanent structures, which do not meet the masonry requirement. Any enlargement of an existing residential structure, including all permanent structures, shall provide an amount of masonry which matches the adjacent surfaces of the existing structure. 2 fff - - 111111 II ilia III � • Cdr � r�"� 1 11 1 f. 11�",� r 11/ 1/; ��' �f r;,� Primary Structu .......................F res 85% 85% 85% 85% ° 8 5/ 85% 85% 100% 75%1 85 0 ........................ ................ ...............................­­­........................ Accessory Buildings .....................­­­..................................­­­.............. NA NA NA NA NA NA NA NA NA NA Under 200 s.f. Accessory Buildings z z NA NA 85% 85% 85% 85% 85% 85% 85% 75%1 200 s.f. or more r_ 2 1 As established by the approved site plan. z Accessory buildings greater than 500 s.f. require Special Use Permit approval in AG and R-1-S districts and may be subject to masonry requirements. CO 0 (c) Masonry calculation (residential). Minimum masonry percentage requirements shall include a ° combination of brick, ceramic block, stone, or other masonry materials installed in a craftsman like manner that are a minimum of one inch thick and imbedded in a cementitious reinforced substrate. (d) Alternative materials. Up to 15 percent of the wall surface no closer than eight feet from the adjacent a, grade level can use non-wood or alternative materials such as siding, reinforced cement board, stucco and other comparable masonry systems approved by the building official. Wood based products for siding materials including eaves, sofits, and chimneys are prohibited except as allowed by a special use permit for unusual construction. Residential masonry materials and alternate materials do not include concrete block, concrete tilt wall or EIFS systems. °E Sec. 118-672.- Exterior wall surface defined. o For the purpose of this subdivision, the exterior wall surface shall be defined as the entire exposed exterior wall surface for each elevation. Packet Pg. 37 6.a Sec. 118-673.- Unusual construction. 0 Other types of residential construction including but not limited to geodesic domes, log homes, A- frame construction, may be allowed only after issuance of a special use provision (refer to division 6, article 11 of this chapter). 0 0 Sec. 118-674. - Roof pitch ratio. U) Any structure constructed for the purpose of residential use must have a roof with a pitch ratio of at 0 least four verticals to 12 horizontals (4:12). U) 2 0 U) r_ 0 C) a� 0 2 a Co 0 2 a CD E r_ 0 Packet Pg. 38 D CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Section 551.071: Consultation with City Attorney to seek advice about pending or threatened litigation or a settlement offer - 1) Cause No. 348-283603-16; and 2) State of Texas - Loop 820 expansion and associated right of way. Presenter: George Staples, City Attorney Packet Pg. 39 D CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Section 551.072: Deliberate the purchase, exchange, lease or value of real property - 1) West of Davis Boulevard at Northeast Pkwy, 2) SE Corner Rufe Snow & Loop 820 and 3) NW Corner Rufe Snow & Glenview Presenter: Craig Hulse, Director of Economic Development Packet Pg.40 A.3.1 "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Recognition of North Richland Hills Police Department Presenter: Jimmy Perdue, Director of Public Safety Summary: The North Richland Hills Police Department first attained "recognized" status in December 2011 and held the distinction of being the 48th agency in the state to reach that benchmark set by the Texas Police Chiefs Association Law Enforcement Recognition Program. Four years later, the Police Department demonstrated compliance in 166 standards, and on January 26, 2016 was again awarded recognized status in this exemplary class with now over 117 other Texas agencies. General Description: Begun in 2007, the recognition program evaluates a Police Department's compliance with 166 best business practices for Texas law enforcement. The program is a voluntary process where police agencies in Texas prove their compliance with law enforcement's current best practices. The best practices were carefully developed by Texas law enforcement professionals to assist agencies in the efficient and effective delivery of service and the protection of individual's rights. These best practices cover all aspects of law enforcement operations including use of force, protection of citizen rights, pursuits, property and evidence management, and patrol and investigative operations. While being "Recognized" does not mean an agency will not make a mistake, it does ensure that the agency has carefully thought about these critical issues, has developed policy and procedures to address them and has systems in place to identify and correct problems. When the North Richland Hills Police Department achieved the title "Recognized" in 2011, it meant that the agency met or exceeded all of the identified best practices for Texas law enforcement agencies. The "Recognized" status is awarded for a four-year period. During the four year period, the agency must submit an annual report and show continuing compliance with several performance related standards. These are reviewed as they are received and compliance verified. During the last year of the period, the agency must prepare updated documentation on all best practices and another on-site review is conducted. The Recognition Committee must then vote again to approve "Recognized" status for the next four years. On January 26, 2016, the North Richland Hills Police Department was awarded "Recognized" status through the year 2020. The recognition program assures the Council, city management and the citizens we serve that their Police Department embodies the very best of what the law enforcement profession represents. Recommendation: Packet Pg.41 A.3.2 lqmk 1W Rib "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Recognition of North Richland Hills Library presented by Curren McLane, TMLDA Member and Director of the Azle Public Library Presenter: Cecilia Barham, Director of Library Services Summary: The NRH Library has earned the Texas Municipal Library Director's (TMLDA) Excellence in Library Services Award for 2015. Each year, TMLDA confers awards for outstanding contributions by public libraries. The NRH Library has been selected as one of the 2015 winners who represent the top 7% of public libraries. General Description: The NRH Library completed a comprehensive application process that included services represented in ten different categories, including: Summer Reading Club Programs, Services to Underserved Populations, Enhanced Services, Marketing Campaigns, Literacy Support, Cultural and Educational Programming, Collaboration and Library Presence. The Library was selected as a winner for the 2015 award by a committee of their Library peers from across the state. Recommendation: Packet Pg.42 B.1 lqmk 1W Rib "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Approve minutes of the February 8, 2016 regular City Council meeting. Presenter: Alicia Richardson, City Secretary Summary: The minutes are listed on the consent agenda and approved by majority vote of Council at the City Council meetings. General Description: The City Secretary's Office prepares action minutes for each City Council meeting. The minutes for the previous meeting are placed on the consent agenda for review and approval by the City Council, which contributes to a time efficient meeting. Upon approval of the minutes, an electronic copy will be uploaded to the City's website. Recommendation: Approve minutes of the February 8, 2016 regular City Council meeting. Packet Pg.43 B.1.a 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 FEBRUARY 8, 2016 E WORK SESSION The City Council of the City of North Richland Hills, Texas met in work session on the Stn day of February 2016 at 5:30 p.m. in the City Council Workroom prior to the 7:00 p.m. regular Council meeting. c� Present: Oscar Trevino Mayor David Whitson Mayor Pro Tern cm Tito Rodriguez Council, Place 1 Rita Wright Oujesky Council, Place 2 Tom Lombard Council, Place 3 Tim Barth Council, Place 4 Scott Turnage Council, Place 6 Tim Welch Council, Place 7 0 Staff Members: Mark Hindman City Manager Paulette Hartman Assistant City Manager Karen Bostic Assistant City Manager Jimmy Perdue Director of Public Safety Mike Curtis Managing Director Vickie Loftice Managing Director Alicia Richardson City Secretary eo co Cara L. White City Attorney Monica Solko Assistant City Secretary co Craig Hulse Director of Economic Development cm Stan Tinney Fire Chief Kent Austin Director of Finance cm Kenneth Rawson Assistant Fire Chief U) Kyle Mcafee Assistant Fire Chief Mary Peters Public Information Officer Clayton Comstock Planning Manager Frank Perez Water Park General Manager Marrk Collier Management Assistant Boe Blankenship Public Works Superintendent c� Call to Order Mayor Trevino called the meeting to order at 5:30 p.m. February 8, 2016 City Council Meeting Minutes Page 1 of 8 Packet Pg.44 B.1.a 1. Discuss items from Regular City Council meeting. Council had no questions for staff. 2. Welcome and introduction - public official, public employee or citizen. E City Manager Mark Hindman introduced Cara White with Taylor Olsen Adkins Sralla E Elam (TOASE) law firm. Ms. White will be at the City Council meetings during the interim while staff finalizes the process for city attorney services. c� 3. Discuss NRH2O Family Water Park branding and design efforts. c� Managing Director Vickie Loftice introduced Christopher Arnold with Forrec, LTD. who cm was in attendance to present the proposed branding and design for the NRH2O family co water park. Mr. Arnold provided Council with the background, discussion, research, and the steps taken to date to capture the essence of the waterpark. He also shared the firm's approach to incorporate and build on the current characters of the waterpark. The proposed branding and design also includes new characters for the waterpark, which U) included Professor Frogstein's son, Doctor Unfun's niece and nephew, and a couple of new animals to keep with theme. Mr. Arnold showed Council the proposed logo for the waterpark. He shared with Council the plan to enhance the entry way, wave pool area and entrances to rides. He provided Council with illustrations of the proposed cabanas to be located in the existing sand volleyball court. Council concurred with the proposed branding, design, and logo. eo co In response to Council's question, Ms. Loftice informed Council that staff would be able co to fund most of the branding and design recommendations with the exception of the cm wave pool, which will budgeted for a future project. She commented that the way- finding signs and entrances would be completed this year and the cabanas would be cm scheduled for the following year. Staff is projecting a return on investment for the U) cabanas in three years at a 45% occupancy rate. The new logo will be implemented with the redesign of the NRH2O website. 4. Discuss rescheduling the May 23, 2016 City Council meeting. 0 c� City Secretary Alicia Richardson informed Council the statutory time to canvass the election results falls between the regular scheduled Council meetings in the month of May. The Election Code states that a governing body may not canvass the election results earlier than the third day after the election and no later than the eleventh day after the election. Staff is recommending that Council consider rescheduling the May 23 meeting to May 16. By rescheduling the meeting, the Council can conduct city business, canvass the election results, and administer the oaths of office to the newly elected officials. February 8, 2016 City Council Meeting Minutes Page 2 of 8 Packet Pg.45 B.1.a Council directed staff to reschedule the meeting. Ms. Richardson informed Council that staff would bring forward an item to formally reschedule the meeting. EXECUTIVE SESSION E Mayor Trevino announced at 6:04 p.m. that the Council would adjourn into Executive E Session as authorized by Chapter 551, Texas Government Code, specifically Section 551.071: Consultation with City Attorney to seek advice about pending or threatened litigation or a settlement offer - Cause No. 348-283603-16; 551.072: Deliberate the c� purchase, exchange, lease or value of real property - 1) Iron Horse Blvd at Browning Drive, 2) SE Corner Rufe Snow & Loop 820 and 3) NW Corner Rufe Snow & Glenview, and 551.074: Personnel matters to deliberate the employment, evaluation, and duties of cm public employees - City Attorney. Executive Session began at 6:05 p.m. and concluded at 6:58 p.m. Mayor Trevino announced at 6:58 p.m. that Council would convene to the regular City Council meeting. REGULAR COUNCIL MEETING U) E A. CALL TO ORDER 0 Mayor Trevino called the meeting to order February 8, 2016 at 7:05 p.m. ROLL CALL eo co Present: Oscar Trevino Mayor co David Whitson Mayor Pro Tern cm Tito Rodriguez Council, Place 1 Rita Wright Oujesky Council, Place 2 cm Tom Lombard Council, Place 3 U) Tim Barth Council, Place 4 Scott Turnage Council, Place 6 Tim Welch Council, Place 7 Staff Members: Mark Hindman City Manager Paulette Hartman Assistant City Manager Karen Bostic Assistant City Manager Alicia Richardson City Secretary Monica Solko Assistant City Secretary Cara L. White City Attorney February 8, 2016 City Council Meeting Minutes Page 3 of 8 Packet Pg.46 B.1.a A.1 INVOCATION Council member Barth gave the invocation. A.2 PLEDGE E Council member Barth led the pledge of allegiance to the United States and Texas E flags. A.3 SPECIAL PRESENTATION(S) AND RECOGNITION(S) There were no items for this category. cm AA CITIZENS PRESENTATION Mr. Tolbert Jenkins, 8001 Limerick Lane, shared with Council that he has a lot to bring to their attention. He commented that he was involved in a collision on the 7000 block of Davis Boulevard. He also commented on the schools, water, officers, solar panels and sidewalks. 0 U) A.5 REMOVAL OF ITEM(S) FROM CONSENT AGENDA No items were removed from the consent agenda. 0 B. CONSIDER APPROVAL OF CONSENT AGENDA ITEMS APPROVED eo co B.1 APPROVE MINUTES OF THE JANUARY 25, 2016 REGULAR CITY COUNCIL MEETINGS. co cm B.2 AUTHORIZE RESOLUTION NO. 2016-006, CALLING THE MAY 7, 2016 CITY to COUNCIL ELECTION, AUTHORIZING A JOINT ELECTION AGREEMENT WITH OTHER TARRANT COUNTY POLITICAL SUBDIVISIONS AND cm CONTRACT FOR ELECTION SERVICES WITH TARRANT COUNTY. B.3 AUTHORIZE THE CITY MANAGER TO EXECUTE AN INTERLOCAL AGREEMENT BETWEEN TARRANT COUNTY AND THE CITY FOR ROAD CONSTRUCTION WORK ON REDONDO STREET AND EDEN ROAD. 0 B.4 AUTHORIZE ORDINANCE NO. 3392, ABANDONMENT OF A PUBLIC WATER LINE EASEMENT LOCATED WITHIN THE AEGON OFFICE PARK ADDITION. B.5 AUTHORIZE THE CITY MANAGER TO EXECUTE A CONTRACT WITH ALL POINTS PIONEER FOR SERVICES TO RELOCATE CITY HALL IN AN AMOUNT NOT TO EXCEED $82,308.50. COUNCIL MEMBER LOMBARD MOVED TO APPROVE THE CONSENT AGENDA. COUNCIL MEMBER TURNAGE SECONDED THE MOTION. February 8, 2016 City Council Meeting Minutes Page 4 of 8 Packet Pg.47 B.1.a MOTION TO APPROVE CARRIED 7-0. C. PUBLIC HEARINGS C.1 RP 2015-10 PUBLIC HEARING AND CONSIDERATION OF A REQUEST FROM WINKELMANN & ASSOCIATES FOR A REPLAT OF NORTH TARRANT MARKETPLACE ADDITION ON 27.131 ACRES LOCATED IN THE E 9100 BLOCK OF NORTH TARRANT PARKWAY. PUBLIC HEARING OPENED AND CONTINUED TO FEBRUARY 22, 2016 c� Mayor Trevino opened the public hearing. Mayor Trevino informed Council the applicant requested that this item be moved to the February 22, 2016 City Council meeting. He confirmed that the applicant was not present before taking action on the item. COUNCIL MEMBER LOMBARD MOVED TO CONTINUE THE PUBLIC HEARING TO THE FEBRUARY 22, 2016 CITY COUNCIL MEETING. MAYOR PRO TEM WHITSON SECONDED THE MOTION. MOTION TO CONTINUE CARRIED 7-0. 0 U) D. PLANNING AND DEVELOPMENT There were no items for this category. 0 E. PUBLIC WORKS There were no items for this category. eo co F. GENERAL ITEMS co cm F.1 CONSIDER RESOLUTION 2016-009, AUTHORIZING TEXAS COALITION FOR AFFORDABLE POWER (TCAP) TO NEGOTIATE AN ELECTRIC SUPPLY cm AGREEMENT FOR FIVE (5) YEARS EFFECTIVE JANUARY 1, 2018 AND TO U) ACT AS AN AGENT ON BEHALF OF THE CITY APPROVED Assistant City Manager Karen Bostic presented item for Council. The City of North Richland Hills, together with approximately 170 political subdivisions, makes up the 0 Texas Coalition for Affordable Power (TCAP). As a member of TCAP, the benefit to purchase power on the open market allows the consortium to get lower electric rates. The resolution authorizes TCAP to negotiate electric services for a five year period at a fixed price, full requirements at a price not to exceed 4.1 cents per kWh for the north and west zones or 4.25 cents per kWh for the south and Houston zones. The resolution provides for three authorized persons—Mark Hindman, Karen Bostic, or Jay Doegey, respectively—to execute the electric supply agreement. Ms. Bostic informed Council the resolution provides three options—(1) fixed price for all consumption regardless of February 8, 2016 City Council Meeting Minutes Page 5 of 8 Packet Pg.48 B.1.a time of day; (2) fixes a price for the peak usage period and then turns to the spot market for all off-peak usage; and (3) a combination of a block of power to cover the base load with daytime peak consumption being partly covered by a fixed price for solar power with all other consumption supplied by the spot market. Staff is recommending option 1. E COUNCIL MEMBER WRIGHT OUJESKY MOVED TO APPROVE RESOLUTION NO. 2016-009, SELECTING OPTION 1 AND AUTHORIZING TEXAS COALITION FOR AFFORDABLE POWER (TCAP) TO NEGOTIATE AN ELECTRIC SUPPLY AGREEMENT FOR FIVE (5) YEARS EFFECTIVE JANUARY 1, 2018 AND TO ACT AS AN AGENT ON BEHALF OF THE CITY. COUNCIL MEMBER RODRIGUEZ SECONDED THE MOTION. C) MOTION TO APPROVE CARRIED 7-0. cm G. EXECUTIVE SESSION ITEMS - CITY COUNCIL MAY TAKE ACTION ON ANY ITEM DISCUSSED IN EXECUTIVE SESSION LISTED ON THE WORK SESSION AGENDA Mayor Trevino announced that Council would take action on two items as the result of 0 discussion in Executive Session. U) SECTION 551.072: DELIBERATE THE PURCHASE, EXCHANGE, LEASE OR VALUE OF REAL PROPERTY - IRON HORSE BLVD AT BROWNING DRIVE APPROVED 0 Director of Economic Development Craig Hulse presented item for Council. A future rail station known as Iron Horse station will be located on the corner of Iron Horse Boulevard and Boulder Drive, just behind Sam's Club and one block north of Loop 820. oo On July 27, 2015, Skeeter and Bucky L.P. (property owner), The T, and the city co collaborated on a station design that required the purchase and swap of property to cm accommodate the area needed for the rail station. A minor alteration is needed for the station that requires the additional purchase of land from Skeeter & Bucky L.P. for the southwest corner of the park and ride lot and station platform. The request for Council's cm consideration is to purchase 3,658 square feet for $17,376 and the cost for professional fees for planning and surveying at $7,147 for a total cost of $24,523. Staff is recommending that Council authorize the city manager to execute an earnest money contract with Skeeter & Bucky L.P. for the purchase of 3,658 square feet of property located on the Tabitha Akers Survey, Abstract No. 19, North Richland Hills, TX. c� Council had no questions for staff. COUNCIL MEMBER SCOTT TURNAGE MOVE TO AUTHORIZE THE CITY MANAGER TO EXECUTE AN EARNEST MONEY CONTRACT WITH SKEETER & BUCKY L.P. FOR THE PURCHASE OF 3,658 SQUARE FEET OF PROPERTY LOCATED ON THE TABITHA AKERS SURVEY ABSTRACT NO. 19, NORTH RICHLAND HILLS, TX. MAYOR PRO TEM WHITSON SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7-0. February 8, 2016 City Council Meeting Minutes Page 6 of 8 Packet Pg.49 B.1.a SECTION 551.072: DELIBERATE THE PURCHASE, EXCHANGE, LEASE OR VALUE OF REAL PROPERTY— NW CORNER RUFE SNOW & GLENVIEW APPROVED CD E Director of Economic Development Craig Hulse presented item for Council. The request for Council's consideration is to purchase Tract 7A, William W. Wallace Survey, E Abstract 1606, North Richland Hills, TX. Council had no questions for staff. COUNCIL MEMBER WRIGHT OUJESKY MOVED TO AUTHORIZE THE CITY MANAGER TO EXECUTE AN EARNEST MONEY CONTRACT WITH M.S. WOOD INC. FOR THE PURCHASE OF TRACT 7A, WILLIAM W. WALLACE SURVEY ABSTRACT 1606, NORTH RICHLAND HILLS, TX. COUNCIL MEMBER WELCH SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7-0. H. INFORMATION AND REPORTS U) H.1 ANNOUNCEMENTS Council member Lombard made the following announcements. 0 The NRH Community Emergency Response Team will be training new members this spring. The 11-week training will be held on Wednesday evenings from March 23 through June 1. You can apply online and get more information on the city's website or eo co by calling Emergency Management Coordinator Bill Owens at 817-427-6935. co cm Applications are being accepted for the Residential Energy Efficiency Program. This program, funded by Atmos Energy, helps eligible residents reduce their energy costs through free weatherization of their home. An application is available online or by cm contacting Debbie York at 817-427-6651. During the month of February, the NRH Animal Adoption & Rescue Center is reducing the adoption fee for cats to $60.00. Normally $100.00, the adoption fee includes spay or neutering, microchip, vaccinations, heartworm testing and city registration tag. Each cat adopted in February will also take home a bag of food, treats and coupons to local pet supply stores. Kudos Korner — Rick Roberts and Debbie Heizer in Neighborhood Services — A representative from the High Point Estates HOA emailed appreciation to Rick and Debbie for helping to resolve an issue with lighting at adjacent businesses. The HOA had previously contacted the business with no response. After Rick and Debbie contacted the businesses, appropriate adjustments to the lighting were made. The February 8, 2016 City Council Meeting Minutes Page 7 of 8 Packet Pg. 50 B.1.a residents noticed great improvement and were thankful for the prompt and professional response. I. ADJOURNMENT E Mayor Trevino adjourned the meeting at 7:25 p.m. a� Oscar Trevino, Mayor ATTEST: cm Alicia Richardson, City Secretary 0 U) E 0 eo co co cm cm U) a� 0 c� February 8, 2016 City Council Meeting Minutes Page 8 of 8 Packet Pg. 51 B.2 lqmk 1W Rib "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Reschedule the May 23 City Council meeting to May 16, 2016. Presenter: Alicia Richardson, City Secretary Summary: The City Council is being asked to reschedule the May 23 City Council meeting to May 16, 2016. The rescheduled date will allow Council to canvass the election results, administer oaths of office to the newly elected officials and conduct city business. General Description: The regular scheduled City Council meetings in May do not align with the dates stipulated by the Election Code to canvass the results of the May 7, 2016 General Election. On February 8, 2016, staff presented an item during work session to gain direction from Council with regard to rescheduling the May 26 meeting or calling for a special meeting to canvass the election results and administer the oaths of office to newly elected officials. Council directed staff to reschedule the May 26 City Council meeting to May 16, 2016. This item is placed on the agenda to formally reschedule the meeting and notify the public of the change in the meeting date. Recommendation: To reschedule the May 26 Council meeting to May 16, 2016. Packet Pg. 52 B.3 "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Authorize the City Manager to enter in to a mutual aid agreement with the participating agencies of the North Central Texas Public Works Emergency Response Team (PWERT). Presenter: Billy Owens, Emergency Management Coordinator Summary: This is a mutual aid agreement to join the Public Works Emergency Response Team (PWERT). PWERT is a group that helps to provide public works resources to agencies during emergencies or disasters. During the holiday tornadoes in 2015 the participating agencies of PWERT provided 499 personnel shifts and more than 600 pieces of equipment. General Description: PWERT requires a signed mutual aid agreement to become a participating jurisdiction. North Richland Hills would become the 40th member of PWERT in DFW by signing this agreement. There is no cost associated with joining this group and response is not mandatory when called upon. PWERT aims to reduce the workload of impacted jurisdictions by finding requested resources, deploying assets, staging equipment, coordinating assignments, and maintaining documentation. No responding agency will be reimbursed for the first 36 hours of operation. Responding agencies will also be responsible for providing a supervisor for their staff and all food, water, and support needed to perform their duties while responding. Recommendation: Authorize the City Manager to enter in to a mutual aid agreement with the participating agencies of the North Central Texas Public Works Emergency Response Team (PWERT). Packet Pg. 53 B.3.a NORTH CENTRAL TEXAS PUBLIC WORKS MUTUAL AID AGREEMENT This mutual aid agreement ("Agreement") is entered into by, between, and among the North Central Texas Participating Local Governments and/or Public/Political Sub-Divisions located wholly or partially within the State of Texas acting by and through their duly authorized officials. The undersigned Participating Local Governments and any and/or Public/Political Sub-Divisions of the State of Texas adopting this agreement upon a formal order of their respective governing bodies as provided therein may be referred to in this Agreement individually as "Party" and collectively as "Parties." By signing this document, and sending it to the Public Works Emergency Response Team, at an address maintained by the NCTCOG, the agency has indicated that it consents to be a party to this emergency mutual aid agreement, and acknowledges that it is not necessary to receive copies of the agreement from other agencies that are party to such agreement. RECITALS WHEREAS,the Parties recognize the vulnerability of the people and communities located within U) r_ local governments and public subdivisions to damage, injury, and loss of life and property resulting in emergencies, disasters or civil emergencies and recognize that such incidents may present equipment and personnel requirements beyond the capacity of each individual (governmental entity) (Party); and WHEREAS, the governing officials of the Parties desire to secure for each Party the benefits of Mutual Aid for the protection of life and property in the event of an emergency, disaster or civil emergency or public works emergency; and U) WHEREAS,the Parties that wish to make suitable arrangements to provide Mutual Aid are so authorized, and make this Agreement pursuant to all governmental power inherent in home rule and 2 other municipalities and all statutory authority, including, but not limited to, the Interlocal Cooperaton Act Chapter 791 of the Texas Government Code); the Texas Disaster Act of 1975 as amended Chapter a. 418 of the Texas Government Code including the Texas Statewide Mutual Aid System of the Emergency Management Chapter, set out in Subchapter E-1 of Texas Government Code, Section 418.111 et seq, co and any amendments to that authority or other authority that may be set out in the constitution of laws of the State of Texas; i WHEREAS, it is understood that the creation of this Agreement and the Texas Statewide Mutual Aid System (SB11) under Chapter 418 E-1 does not replace or supersede existing mutual aid agreements or interfere with the ability of municipalities to enter into written mutual aid agreements in the future. It is understood that if a written agreement is entered into by governmental entities or municipalities requesting resources, then the terms of that agreement control the rights and responsibilities of the participating parties to the extent the agreement provides terms that differ from the Texas Statewide Mutual Aid System. WHEREAS, it is expressly understood that any mutual aid extended under this Agreement and the operational plan adopted pursuant thereto, is furnished in accordance with the 'Texas Disaster Act" and other applicable provision of law and except as otherwise provided by law, that the responsible local official in whose jurisdiction an incident requiring Mutual Aid has occurred shall remain in charge at such incident including the direction of such personnel and equipment provided him/her through the operation of such Mutual Aid Plans; 1 Packet Pg. 54 B.3.a NORTH CENTRAL TEXAS PUBLIC WORKS MUTUAL AID AGREEMENT NOW,THEREFORE, the Parties agree as follows: Section 1: Incorporation:The above whereas provisions and statements are incorporated as if written word for word below. Section 2: Purpose: This Agreement is hereby established to provide planning and operating procedures whereby public works related Agencies may request aid and assistance in the form of personnel, equipment, materials and/or other associated services from other public works related agencies. This agreement allows for better coordination of efforts, identifies available resources and helps ensure that timely aid can be provided. Section 3: Definitions A. "Agency" means any municipal public works agency, township road district, county highway departments, or any Public/Political sub-division that performs a public works function that U) abides by the provisions as found in this Agreement. B. "Administrative Agency" means the entity designated by the Parties to be responsible for maintaining the documents associated with this Agreement including distributing Point of Contact and Resource Inventory information. C. "Assisting Party" or"Responding Party" means the agency or organization which has received a request to furnish aid and assistance from another Party and has agreed to provide the same. D. "Civil Emergency" means an unforeseen combination of circumstances or the resulting U) consequences thereof within the geographic limits of a given jurisdiction that calls for immediate action or for which there is an urgent need for assistance or relief to protect the general citizenry. 2 E. "Disaster" means the occurrence or imminent threat of widespread or severe damage, injury, or loss of life or property resulting from any natural or manmade cause, including but not limited a. to fire, flood, earthquake,wind, storm, wave action,winter storm, biological or health hazards, dam or levee break, drought, explosion, riot„ acts of terrorism and other public calamity co requiring emergency action or requiring homeland security activity(as that term is defined in Chapter 421 of the Texas Government Code entitled Homeland Security)that is or likely to be, beyond the control of the services personnel equipment and facilities of a Party that requires i assistance under this Agreement, but must be coordinated through the appropriate local accredited/certified Emergency Management Agency coordinator. F. "Emergency" means any occurrence or threat thereof,whether natural or caused by man, in war or in peace,which results in substantial injury or harm to the population, or substantial damage to or loss of property. G. "Homeland security activity means any activity related to the prevention or discovery of, response to, or recovery from a terrorist attack, natural or man-made disaster, hostile military or paramilitary action, or extraordinary law enforcement emergency. H. "Mutual Aid" means providing resources such as personnel, equipment, services and supplies. These resources support typical public works missions or tasks such as: removal of debris, restoration of water/wastewater operations, flood control, infrastructure system repairs, standby power, and damage assessment. 2 Packet Pg. 55 B.3.a NORTH CENTRAL TEXAS PUBLIC WORKS MUTUAL AID AGREEMENT I. "National Incident Management System (NIMS)" means a Presidential directive that provides a consistent nationwide approach that allows federal, state, local and tribal governments as well as private sector and nongovernmental organizations to work together to manage incidents and disasters of all kinds. J. "Operational Period" shall mean a period of time beginning at the time of the request for Mutual Aid and lasting no longer than thirty six(36) hours. Typically assistance would be given in Twelve (12) hour shifts for operational efficiencies. It is the intention of this mutual aid to be for assistance in the initial response to the emergency and not part of the long term recovery. If assistance is requested beyond the initial 36 hours, then the requesting agency must work with the responding agency directly and put in place a mutual agreeable contract and payment for services rendered. It is also understood that any agency responding under this mutual aid agreement will not receive any reimbursement for their mutual aid assistance up to the first 36 hours, even if the event becomes a declared emergency by the President. After the first 36 hours repayment shall be provided. It is also understood that any agency for any reason may U) decline to assist or recall their mutual aid at any time. K. "Point of Contact" means a person and/or an agency's department/office serving as the coordinator or focal point of information dealing with public works emergency response activities. L. "Public Works Emergency Response Team" (PWERT) means a working group of Public Works Officials representing their agencies;whose mission is to develop and maintain a region wide network of public works' related agencies. This teams' principal purpose is to provide mutual U) aid response and recovery assistance, to each other,when confronted with natural or man- made emergencies or disasters. This Group is designated as the Administrative Agency to manage this Agreement. 2 M. "Requesting Party" means the agency or organization receiving aid and assistance from a Assisting Party. a. N. Public/Political Sub-Division means a basic level of independent local government or quasi- co government authorized by Section 52 of the Texas Constitution that typically have a specific or limited purpose including Dallas Fort Worth International Airport,Toll Authorities, independent school districts, water or wastewater districts and improvement and economic development districts and exist separately from general purpose local governments such as county, city or i townships. Section 4:Term This Agreement shall become effective as to each Party on date of adoption as indicated on the signature page for each Party and shall continue in force and remaining binding on each and every Party for twelve (12) months from the effective date. This Agreement shall renew automatically for a period of one year upon the completion of the initial term and each subsequent term unless such time as the governing body of a Party terminates its participation in this Agreement pursuant to Section 4 of this Agreement. Termination of participation in this Agreement by a Party or Parties shall not affect the continued operation of this Agreement between and among the remaining Parties 3 Packet Pg. 56 B.3.a NORTH CENTRAL TEXAS PUBLIC WORKS MUTUAL AID AGREEMENT Section 5:Termination Any Party may at any time by resolution or notice given to all the other Parties decline to participate in the provision of Public Works Mutual Aid. The Governing Body of a Party shall, by Resolution, give notice of termination of participation in this Agreement and submit a copy of such resolution to the Administrative Agency and all other Parties. Such termination shall become effective thirty (30) days after filing of such notice. The termination by one or more of the Parties of its participation in this Agreement shall not affect the operation of this Agreement as between the other Parties hereto. Section 6: Responsibility of Parties Provision of Aid: Each Party recognizes that it may be requested to provide aid and assistance at a time when it is necessary to provide similar aid and assistance to the Party's own constituents. This Agreement shall not be construed to impose any unconditional obligation on any Party to U) provide aid and assistance. A Party may choose not to render aid and assistance at any time for any reason, or to recall aid that has been deployed at anytime. Section 7: Request for Assistance: The request for assistance will: A. Be made only with a Declaration of a state of Local Civil Emergency or Declaration of Disaster by a Requesting Party pursuant to Section 418.108,Texas Government Code or U) after a proclamation of a State of Emergency under Section 433.001,Texas Government Code, B. Be made only without a Declaration of a state of Local Civil Emergency or Declaration of 2 Disaster if the requesting agency expects to use the resource(s)for less than one operational period or if the declaration of emergency is expected to be issued during the a. first operational period. C. Be made by the highest ranking authority of Requesting Party available at the time of need, co D. Be made to the highest ranking authority of the Responding Party available at the time of need, and E. Specify to the greatest extent possible the nature of the problem requiring assistance and i the resources requested. Section 8: Procedures for Requests and Provision of Mutual Aid: See Attachment 1 Section 9: Cost Limitation A Requesting Party shall not be required to reimburse a Responding Party for costs incurred during the first Operational Period as defined in Section 2 of this Agreement. A Requesting Party shall be required to reimburse a Responding Party for costs incurred after the first Operational Period. 4 Packet Pg. 57 B.3.a NORTH CENTRAL TEXAS PUBLIC WORKS MUTUAL AID AGREEMENT Section 10: Expending Funds: A Responding Party that performs services or furnishes aid pursuant to this Agreement shall do so with their own current funds. No Party shall have any liability for the failure to expend funds to provide aid hereunder. Section 11: Insurance A. Worker's Compensation Coverage: Each Party shall be responsible for its own actions and those of its employees and is responsible for complying with the Texas Workers' Compensation Act. B. Automobile Liability Coverage: Each Party shall be responsible for its own actions and is responsible for complying with the Texas motor vehicle financial responsibility laws. C. To the extent permitted by law and without waiving sovereign immunity, each Party shall be U) responsible for any and all claims, demands, suits, actions, damages, and causes of action related to or arising out of or in any way connected with its own actions and the actions of its personnel in providing Mutual Aid assistance rendered or performed pursuant to the terms and conditions of this Agreement. Each party agrees to obtain general liability and public official's liability insurance, if applicable, or maintain a comparable self-insurance program. U) Section 12: Miscellaneous 0 A. Entirety: This Agreement contains all commitments and agreements of the Parties with 2 respect to the Mutual Aid to be rendered hereunder during or in connection with an Emergency, Disaster and/or Civil Emergency. No other oral or written commitments of the a. Parties with respect to mutual aid under this Agreement shall have any force or effect if not contained herein, except as provided in Section 12E below. co B. Other Mutual Aid Agreements: This Agreement is not intended to replace or conflict with - local mutual aid agreements for other emergency response needs such as fire and police or for the other purposes i C. Severability: If a provision contained in this Agreement is held invalid for any reason, the invalidity does not affect other provision of the Agreement that can be given effect without the invalid provision, and to this end the provisions of the Agreement are severable. D. Validity and Enforceability: If any current or future legal limitations affect the validity or enforceability of a provision of this Agreement, then the legal limitations are made as part of the Agreement and shall operate to amend this Agreement to the minimum extent necessary to bring this Agreement into conformity with the requirement of the limitations, and so modified, this Agreement shall continue in full force and affect. E. Amendment: This Agreement may be amended only by the mutual written consent of the Parties. F. Governing Law and Venue: The Laws of the State of Texas shall govern this Agreement. In the event of an Emergency or Disaster physically occurring with the geographical limits of only one county that is a Party hereto, venue shall lie in the county in which the Emergency or Disaster occurred. In the event an Emergency or Disaster physically occurring in more 5 Packet Pg. 58 B.3.a NORTH CENTRAL TEXAS PUBLIC WORKS MUTUAL AID AGREEMENT than one county that is a Party thereto,venue shall be determined in accordance with the Texas Rules of Civil Procedure. G. Signatories: The PWERT shall be the official repository of original pages of the Parties to this Agreement and will maintain an up-to-date list of those Parties. Each Party will retain a copy of their own originally signed document with an additional individual signature page from their Agency to be filed with the PWERT under this Agreement. PWERT will maintain contact information from all of the parties and provide for a means of communication whenever there is a need to call for mutual aid. This agreement may be signed in multiple copies, and it is only necessary for the agencies to notify the PWERT and keep them informed of the contact information. U) r_ 0 a U) H. PWERT—the Administrative Agency, managing this agreement, provides for one membership seat for each participating agency and one alternate seat. The primary seat should be held by a Public Works Official or designee. The alternate seat should held by a member of the jurisdiction of the Emergency Management Division or designee. The jurisdiction is not required to fill the seats, but, it is strongly recommended, in order to U) receive information and training for emergency response. 0 2 CL co EXECUTED this day of , 20_ Texas (Local Jurisdiction) By: Printed Name: Title: 6 Packet Pg. 59 B.3.a Attachment 1 PROCEDURES TO USE FOR THE NORTH CENTRAL TEXAS PUBLIC WORKS MUTUAL AID AGREEMENT Here are the suggested steps for your agency to follow when using the Agreement. Generally if the Emergency Operations Center for your city is activated follow the incident command system and associated communications operations plan to request resources 1. Requesting Agency Steps to Follow: A. Assess the situation and determine the resources needed. B. Fill out the REQUESTING AGENCY Checklist (Form 1). C. Locate agencies included in the agreement OR Contact the Public Works Emergency Response Team (PWERT) standby point of contact for assistance to complete the remaining steps. D. Call one or more agencies that may have the resources you need. E. Fill out a REQUESTING AGENCY MUTUAL AID INFORMATION Form (Form 2). F. Send copy of the form to the RESPONDING AGENCY as soon as possible. U) 2. Responding Agency Steps to Follow: A. Make sure you can fulfill the request before providing an answer. Notes: 1) obtain required local authority to deploy the resources 2) providing assistance is voluntary and an agency is not required to ' fulfill the request if you determine the resources are critical to your operational needs. E B. Analyze the risk level of the request. W C. Complete the RESPONDING AGENCY Checklist (Form 3)with the information given by the REQUESTING AGENCY. D. Brief your employees and prepare the equipment. E. Complete the Employee & Equipment Information Form (Form 4). Provide copies to your CL responding staff and to the REQUESTING AGENCY. F. Dispatch staff to the REQUESTING AGENCY for assistance. co 3. Supervision and Control: The responding personnel, equipment and other resources will be under the operational control of the Requesting Agency. These response operations shall be NIMS compliant i as well as organized and functioning within an Incident Command System (ICS), Unified Control System (UCS). Direct supervision and control of responding agency's resources shall remain with their designated supervisor(s). The designated supervisor(s) shall: maintain personnel time records, material records and a log of equipment hours and report work progress to the Requesting Agency. The E Responding agency's personnel and other resources remain subject to recall by the Responding Agency's authority at any time, subject to reasonable notice to the Requesting Agency. 4. Food, Housing and Self Sufficiency: Unless specifically instructed otherwise,the Responding agency will have the ability to be self-sufficient as practicable from the time of arrival to their designated staging area location to the time of their arrival back at the responding agency's home department. However, the requesting agency may need to provide resources for tasks extending normal supplies. For example, if the required tasks require significant mobile activities and fuel, the Requesting agency should be prepared to augment their gas/diesel supplies. 1 Packet Pg. 60 B.3.a Attachment 1 PROCEDURES TO USE FOR THE NORTH CENTRAL TEXAS PUBLIC WORKS MUTUAL AID AGREEMENT 5. Communications: Unless specifically instructed otherwise,the Requesting Agency shall have the responsibility for coordinating communications between the personnel of the Responding Agency and the Requesting Agency. Responding Agency should be prepared to furnish their own internal communications equipment sufficient to only maintain communications among their respective operating units. U) r_ 0 a U) U) 0 2 CL co 0 2 Packet Pg. 61 B.3.b PWERT Member Cities (02-05-2016) Jun��aiGtian Allen -City of Anna -City of Arlington -City of Carrollton -City of Cedar Hill -City of Celina -City of Colleyville -City of Decatur-City of Denton -City of Desoto -City of U) Duncanville-City of a Euless, City of Farmers Branch -City of Ferris, City of Fort Worth, City of Grand Prairie-City of Haltom -City of U) Hutchins -City of Kaufman -County Lancaster-City of Little Elm -City of CL McKinney-City of Mesquite-City of co Midlothian -City of U) Murphy-City of Plano-City of Princeton, City of Red Oak-City of Richardson -City of Richland Hills -City of Rockwall -City of CL Rowlett-City of Sachse-City of E Tarrant County Terrell -City of University Park Weatherford -City of Westworth -City of Packet Pg. 62 B.4 "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Approve Resolution No. 2016-010, a Municipal Setting Designation (MSD) Application to the Lennox Ind. Presenter: Mike Curtis, Managing Director Summary: Council is being requested to approve a resolution supporting the application to Texas Commission on Environmental Quality (TCEQ) for a Municipal Setting Designation (MSD) on the property located at 4900 Airport Freeway, Fort Worth, Texas. General Description: This agenda item is to approve Resolution No. 2016-010 supporting an application of Lennox Industries, Inc. to the Texas Commission on Environmental Quality (TCEQ) for the property located at 4900 Airport Freeway, Fort Worth, Texas. In 2003, the 78th Texas Legislature passed a Municipal Setting Designations (MSD) law that relates to potable groundwater and the requirements for removing contaminants from groundwater. The law authorized the TCEQ to receive, process and then certify MSD applications for properties within contaminated groundwater. The goal of this law is to reduce corrective action requirements and associated costs for clean-up of contaminated groundwater that are not used as a potable water supply and are not likely to be used in the future. Lennox Industries, Inc. (Applicant) in trying to obtain TCEQ approval for an MSD for property located at 4900 Airport Freeway, Fort Worth, Texas. The City Fort Worth passed an Ordinance prohibiting the use of groundwater for potable purposes at the designated properties. The application will need to include resolutions from cities located within a 5-mile radius of the MSD property indicating support. The City has the choice to either support or not support the MSD application. Staff has reviewed the technical aspects of the application. Staff would recommend support of the resolution for the following reasons. 1. Based on the on-site groundwater investigation, the on-site shallow groundwater flow direction is towards the southeast, away from North Richland Hills. In addition, the depth of on-site shallow groundwater encountered at the property is from approximately 30 feet below the ground surface. The NRH water wells are Packet Pg. 63 B.4 lqmk 1W Rib "ArRok., NORTH KIC;HLAND HILLS located approximately 4 miles northwest of the subject property with well depths of ranging from 665 to 1,485 feet. 2. Considering that the city's water well is located up-gradient to the subject property as well as the depth of the NRH wells, the potential impact of the chemicals detected in the on-site shallow groundwater in the NRH water wells is highly unlikely. 3. The contaminated groundwater is shallow and appears to be separated from another underlying body of deeper groundwater by a confining layer of rock. Therefore it does not threaten the deeper aquifers. Representatives for the applicant will be present at the Council Meeting to address any questions Council may have. Recommendation: To Approve Resolution No. 2016-010. Packet Pg. 64 B.4 "ArRok., NORTH KIC;HLAND HILLS RESOLUTION NO. 2016-010 A RESOLUTION IN SUPPORT OF THE APPLICATION TO THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY FOR A MUNICIPAL SETTING DESIGNATION OF LENNOX INDUSTRIES INC. LOCATED AT 4900 AIRPORT FREEWAY, FORT WORTH, TEXAS. WHEREAS, on November 17, 2015 the City Council of the City of Fort Worth, Texas, approved Ordinance number 21974-11-2015, prohibiting the use of designated groundwater for beneath the site for potable purposes as well as irrigation at 4900 Airport Freeway, Fort Worth, Texas (the "Site"); and WHEREAS, the City Council of the City of Fort Worth, Texas, made a finding that it is in the best interest of the public and the city to facilitate the efforts of Lennox Industries, Inc. ("Applicant"), to secure a municipal setting designation with the Texas Commission on Environmental Quality (TCEQ) for said Site; and WHEREAS, Applicants have filed an application with the TCEQ for certification of a municipal setting designation for the Site pursuant to Texas Health and Safety Code, Chapter 361, Subchapter W, and have provided notice of such application to the City of North Richland Hills; and WHEREAS, Texas Health and Safety Code, § 361.8065 provides that an application to the TCEQ for a municipal setting designation will not be certified unless the application is supported by a resolution adopted by certain entities, including the city council of each municipality that owns or operates a groundwater supply well located not more than five miles from the property for which the designation is sought; and WHEREAS, the City of North Richland Hills owns or operates groundwater supply wells located not more than five miles from the boundary of said Site; and WHEREAS, Applicants have continuing obligations to satisfy applicable statutory and regulatory provisions concerning groundwater contamination investigation and response actions at the Site; and WHEREAS, the certification of a Municipal Setting Designation for the Site is in the best interests of the community; NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS THAT: SECTION 1. The preambles to this Resolution are hereby adopted in their entirety and incorporated herein as though set forth in full herein. Packet Pg. 65 B.4 lqmk 1w Rib "ArRok., NORTH KIC;HLAND HILLS SECTION 2. The City of North Richland Hills supports Applicant's application to the Texas Commission on Environmental Quality for a Municipal Setting Designation of the Site. SECTION 3. This Resolution shall be effective from and after its passage. PASSED AND APPROVED this the 22th day of February, 2016. CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor ATTEST: Alicia Richardson, City Secretary APPROVED AS TO FORM AND LEGALITY: City Attorney APPROVED AS TO CONTENT: Mike Curtis, Managing Director Packet Pg. 66 B.4.a ORDINANCE NO.21974-11-2015 0 AN ORDINANCE AMENDING THE CODE OF THE CITY OF FORT WORTH (1986), AS AMENDED, BY THE AMENDMENT OF CHAP'T'ER 2 12.5, "ENVIRONMENTAL PROTECTION AND COMPLIANCE," ARTICLE IV "GROUNDWATER AND SURFACE WATER QUALITY," BY AMENDING APPENDIX f°A" "MUNICIPAL SETTING co DESIGNATION SITES IN FORT WORTH," BY THE ADDITION OF SECTION 25 DESIGNATING CFW-MSD-0025, PROVIDING FOR THE PROHIBITION OF THE USE OF GROUNDWATER FOR POTABLE AND IRRIGATION PURPOSES IN CFW-MSD-0025; PROVIDING THAT THIS ORDINANCE IS CUMULATIVE; PROVIDING A SEVERAI3ILITY � CLAUSE; PROVIDING A FINE OF UP TO $2,000.00 FOR EACH OFFENSE IN VIOLATION OF THE ORDINANCE; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR PUBLICATION IN THE OFFICIAL NEWSPAPER OF THE CITY; AND PROVIDING AN co EFFECTIVE DATE, a2 a WHEREAS, Lennox Industries, Inc. (Applicant) has filed an application for support of a resolution seeking a Municipal Setting Designation (MSD) for the site known as 4900 Airport Freeway, Fort Worth, Texas,the metes and bounds description being attached hereto as Exhibit "A"(Site); and cm d WHEREAS, notice to all interested parties has been provided in accordance with all applicable o law and a public hearing has been held on the matter on November 10,2015; and WHEREAS, upon passage of a supporting resolution by the City Council, Applicant intends to file a separate application with the Executive Director of the Texas Commission on Environmental Quality(TCEQ)for certification of an MSD for the Site pursuant to Texas Health co co and Safety Code, Chapter 361, Subchapter W; and WHEREAS, Applicant has continuing obligations to satisfy applicable statutory and regulatory provisions concerning groundwater contamination investigation and response actions at the Site; and LL i Ln cm WHEREAS, the City Council of the City of Fort Worth is of the opinion that it is in the best interest of the public to support Applicant's application to the Texas Commission on Environmental Quality for a Municipal Setting Designation for the Site;and Ordinance No.21974-11-2015 Page 1 of 9 Packet Pg. 67 0 WHEREAS, in order for the TCEQ to certify the Site the city must prohibit the potable use of .2 groundwater from beneath the Site; and .2 WHERE AS, a public drinking water supply system exists that supplies or is capable of 0 co supplying drinking water to the Site,and property-within one-half mile of the Site; and .2 WHEREAS, where public drinking water is available, the potable use of groundwater in U) designated areas should be prohibited to protect public health and welfare when the quality of the groundwater presents an actual or otential threat to human health; p S co NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF TEE CITY OF FORT .2 WORTH,TEXAS,AS FOLLOWS: SECTION 1, C? Chapter 12.5 "Environmental Protection and Compliance," Article IV, "Groundwater and Surface Water Quality," Appendix A, "Municipal Setting Designation Sites in Fort Worth," of the Code of the City of Fort C14 6 z r_ Worth(1986) as amended, is hereby amended by the addition of Section 25 to read as follows: .2 0 U) APPENDIX A—MUNICIPAL SETTING DESIGNATION SITES IN FORT WORTH > 0 24. CFW-MSD-0025 (a) CFW-MSD-0025 is defined and designated as follows: co co Being a tract of land situated in the City of Fort Worth, Tarrant Count y, Texas and being more particularly described by metes and bounds description (Exhibit A) and map of CFW-MSD—0025(Exhibit B). (b) 1"he designated groundwater beneath CFW-MSD-0025 is a shallow,perched aquifer from grade to a depth of approximately 20 feet below grade surface, and is underlain by 0 3: confining limestone, sandstone, and clay formations that serve as a regional aquitard that U_ prevents the vertical migrations of the chemicals of concern to underlying potable Ln aquifers. The chemicals of concern identified in groundwater beneath the site exceeding Q cm ap-plicable Tier 1 Texas Risk Reduction Program (TRRP) Residential Protection Concentration Levels (PCLs) include vinyl chloride, 1,1-dichloroethene,trichloroethane, cis-1,2-dichloroethene,tetrachloroethene, 1,1,2-and trichloroethene. C14 E Ordinance No.21974-11-2015 Page 2 of 9 F Packet Pg. 68 0 (c) The use of the designated groundwater in CFW-MSD-0025 for potable and irrigation .2 purposes is hereby prohibited. This prohibition is necessary because the contaminant M concentrations exceed potable water standards, .2 (d) The City will provide advance written notice to the Texas Commission on Environmental Quality, as much as is practicable,prior to enacting an ordinance repealing or amending co this section. .2 SECTION 2. 2M U) 4) This ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth,Texas 0 CD S (1986), as amended, except where the provisions of this ordinance are in direct conflict with the provisions of such 0 co ordinances and such Code, in which event conflicting provisions of such ordinances and such Code are hereby .2 repealed. SECTION 3. C? to It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses, and T- CD cm phrases of this ordinance are severable, and, if any phrase, clause,sentence,paragraph, or section of this ordinance 6 z .2 shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such 0 U) unconstitutionality shall not affect any of the remaining phrases, clauses,sentences,paragraphs,and sections of this ordinance,since the same would have been enacted by the City Council without the incorporation in this ordinance 0 of any such unconstitutional phrase,clause, sentence,paragraph,or section. co co SECTION 4. Any person, firm, or corporation who violates, disobeys, omits, neglects, or refuses to comply with or who 0 resists the enforcement of any of the provisions of this ordinance shall be fined not more than two thousand 3: U- Ln dollars ($2,000.00) for each offense. Each day that a violation is permitted to exist shall constitute a separate CD CM offense. C14 E Ordinance No.21974-11-2015 Page 3 of 9 Packet Pg. 69 0 SECTION 5. .2 All rights and remedies of the City of Fort Worth, Texas, are expressly saved as to any and all violations of the .2 provisions of the ordinances amended in Section 1, which have accrued at the time of the effective date of this co ordinance and, as to such accrued violations and all pending litigation,both civil and criminal,whether pending in r_ .2 court or not,under such ordinances,same shall not be affected by this ordinance but may be prosecuted until final 2M disposition by the courts. U) SECTION 6. S The City See-rotary of the City of Fort Worth, Texas is hereby directed to publish the caption summarizing the co M .2- purpose of this ordinance and the penalty for violating this ordinance for two (2) days in the official newspaper .2 of the City of Fart Worth,Texas, as authorized by V.T.C.A.Local Government Code Subsection 52.013 M C? SECTION 7. CM 6 Z 'Phis ordinance shall be in full force and effect after its passage and publication as required by law, and it is so r_ .2 ordained. 0 U) 0 APPROVED AS TO FORM AND LEGALITY: co co SARAH FULLENWIDER,CITY ATTORNEY ARTHURN.BASHOR AAY ER ASSISTANT ASSISTANT CfFY MT CITY S ORNEY TARP 0 3: U_ Ln ADOPTED.November 17.2015, Q CM EFFECTrVE: CM E Ordinance No.21974-11-2015 Page 4 of 9 Packet Pg. 70 0 Exhibit A .2 4900 Airport Freeway .2 Metes and Bounds 24.7 Acre Tract co Lots 1 and 2,Block 1 Lennox Industries Addition .2 An Addition to the City of Fort Worth,Tarrant County,TX 2M U) 0 BEING all of Lot 1 and Lot 2, Block 1, Lennox Industries Addition, an addition to the City of Fort Worth, 0 CD Tarrant County, Texas as shown on plat recorded in Volume 388-1 15,Page 68,Plat Records, Tarrant County, S Texas and conveyed to 4900 Airport Freeway, Ltd, aTexas Limited Partnership by instrument re corded in 0 Volume 1 1871, Page 472, Deed Records, Tarrant County, Texas and being more particularly described as co follows: .2 a BEGINNING at a 5/8-inch iron rod set .'m the West line of the Haltom Road right-of-way (a variable width public right-of-way), for the Northeast comer of said Block 1 and the Southeast comer of Lot I-A, Block 2, Mamie Enos Addition, an addition to the City of Fort Worth, Tarrant County,Texas as shown on plat recorded in Volume 398-K,Page 359,Deed Records,Tarrant County,Texas; C? THENCE S 00'23'54" E (call S 00°25'41" E),with the East line of said Lot I and the West line of said Haltom C14 Road right-of-way, a distance of 113,82 feet(call 113,58 feet)to a 5/8-inch iron rod set for the Northeast corner 6 r of said Block z of the Etsie Street right-of-way(a 50-foot public right-of-way) for the East most Southeast come r_ 0 0 U) THENCE S 82`54'58" W (call 8 82°43'45" W), with the North line of said Etsie Street right-of-way and the North most South line of said Block 1, a distance of 141.36 feet(call 141.02 feet)to a 5/8-inch iron rod set for the Northwest corner of said Etsie Street right-of-way; 0 a a THENCE West line S 00002'16" W(call S 00-06107" E), with the West most East line of said Block 1 and the < of said Etsic Street right-of-way, a distance of 50.72 feet (call 50.33 feet) to a 518-inch iron rod set for the I- co Southwest corner of said Etsic Street right-of-way; co THENCE N 82-52'08" E (call N 82°43'45" E), with the South line of said Etsie Street right-of-way, a distance of 1.60 feet to a 5/8-inch iron rod found,for the Northwest comer of Lot 8, Block 2, Baker-Thomasson E Addition, an addition to the City of Fort Worth, Tarrant County, Tex as as shown on plat recorded in Volume 388-L,Page 56,Plat Records,Tarrant County,Texas, 0 3: THENCE 8 00-02'16"W(call S 00106'07" E), with the common line of said Block 1 and said Lot 8 and Lot 9, U_ said Block 2, said Baker-Thomason Addition, a distance of 164.99 feet(call 165.92 feet)to a 5/8-inch iron rod Ln -found in the Northwesterly line of the Trinity Railway Express right-of-way as conveyed to the City of Fort Q cm Worth and the City of Dallas by instrument recorded in Volume 7726, Page 1848, Deed Records, Tarrant County,Texas, for the South most Southeast comer of said Block I and the Southwest comer of said Lot 9; THENCE S 62°35'5:1" W,with the common line of said Block 1 and said Trinity Railway Express cm right-of-way, a.distance of 1,638.99 feet to a 3/8-inch iron rod found; E Ordinance No.21974-11-2015 Page 5 of 9 Packet Pg. 71 0 THENCE N 01044'4611 E (call N 01015149" W), continuing with the common line of said Block 1 and said .2 Trinity Railway Express right-of-way, a distance of 28.39 feet(call 28.11 feet)to a 3/8-inch iron rod found; .2 a THENCE S 62°45'15" W(call 62!35'53" W), continuing with the common line of said Block I and said Trinity a Railway Express right-of-way, a distance of 35,00 feet to a 3/8-inch iron rod found in the Northwesterly line of said Trinity Railway Express right-of-way, for the West most Southwest comer of said Block I and the Southeast comer of Lot 17,Block 9, Oakview, an addition to the City of Fort Worth, Tarrant County,Texas as shown on plat recorded in Volume 388-H,Page 259,Plat Records,Tarrant County,Texas; .0 M THENCE N 280126'59" W (call N 28'16'02" W), with the common line of said Block 1 and said Lot 17, a r_ 2M distance of 322,23 feet (call 321.80 feet)to a 3/8-inch iron rod found in the Southeasterly line of the Marsalis U) 0 Street right-of-way (a 60-foot public right-of-way),for the West most Northwest comer of said Block 1 and the 0 CD Northeast comer of said.Lot 17; E THENCE N 61'47'26" E (call 61'43'58" E), with the common line of said Block I and said Marsalis Street co right-of-way, a distance of 264.53 feet (call 263,70 feet) to a 3/8-inch iron rod found at the intersection of the Southwesterly line of said Marsalis Street right-of-way and the East line of the Maxine Street right-of-way (a .2 50-foot public right-of-way)for an angle point in said Block 1; THENCE N 000 15114" W(call N 00'15'49" W),with the common line of said Block I and said Maxine Street eet right-of-way, at 21.637 feet,pass a 5/8-inch iron rod set for the Southwes t comer of said Lot 2, said Block 1, at 482.77 feet,pass a 5/8-inch iron rod set for the Northwest comer of said Lot 2,said Block 1, in all a distance of cm 555.54 feet (call 555.97 feet) to a railroad spike found in the East line of said Maxine Street right-of-way and public right-of-way), for the Northwest 0 the Southeasterly line of State Highway 121 right-of-way (a 330-foot z r_ comer of said Block 1 .2 THENCE N 591)52"32" E (call 59-51'03" E), with the common line of said Block 1 and said State Highway 0 U) 121,a distance of 159.93 feet to a 5/8-inch iron rod set; 0 THENCE N 89051'26" E (call EAST), continuing with the commo n line of said Block I and said State Highway 121 right-of-way, a distance of 11.27 feet; THENCE N 00°16'57" W, continuing with the common line of said Block 1 and said State Highway 121 right- co of-way,a distance of 6.50 feet to a 5/8-inch iron Tod set; co THENCE N 59-52'32" F(call N 59'5 1'03"E),continuing with the common line of said Block 1 and said State Highway 121 right-of-way,a distance of 71.22 feet(call 71.17 feet)to a 5/8-inch iron rod set; THENCE EAST, continuing with the common line of said Block 1 and said State Highway 121 right-of-way, a 0 3: distance of 6.27 feet to a 5/8-inch iron rod set; U- Ln THENCE NORTH, continuing with the common line of said Block 1 and said State Highway 121 right-of- Q cm way,a distance of 3,62 feet to a 5/8-inch iron rod set; THENCE N 59052'32" E(call N 59051103" E),continuing with the common line of said Block 1 and said State Highway 121 right-of-way, a distance of 246.22 feet to a railroad spike found; C14 .;j THENCE N 89049'57" E, continuing with the common line of said Block 1 and said State Highway 121 right- of-way,a distance of 10.00 feet to a 5/8-iron rod set in the South line of the Wheeler Street right-of-way(a 5 0- E Ordinance No.21974-11-2015 Page 6 of 9 Packet Pg. 72 0 foot public right-of-way), for the North most Northeast coiner of said Block I and the Northwest comer of Lot .2 12, Block 2, Mamie Enos Addition, an addition to the City of Fort Worth, Tarrant County, Texas as shown on plat recorded in Volume 1935,Page 505,Deed Records,Tarrant County,Texas; .2 THENCE S 00-1.5'10" E (call S 00'16'57" E), departing the South line of said Wheeler Street right-of-way, with the common line of said Block I and said Lot 12, a distance of 127.60 feet to a 5/8-inch iron rod set for a co re-entrant comer of said Block I and the Southwest comer of said Lot 12; C� .2 (c M THENCE N 8905144 all N 89-49157" E) with the common line of said Block 1 and said Block 2, a BEGINNING and containing 24.700 acres of land,more or less, distance of 1,105,27 feet to the POINT OF 2M U) S U) .2 C? C14 6 z r_ .2 0 U) 0 co co 0 3: U- Ln Q C14 C14 E Ordinance No.21974-11-2015 0 Page 7 of 9 Packet Pg. 73 0 0 .2 C0 .2 2M U) CD S C0 .2 Exhibit B 4900 Airport Freeway Q i 24,7 Acre Tract Cm 6 z r_ .2 0 U) cs cs Co Co 0 3: U- Ln CD Cm C14 E Ordinance No.2197411-2015 Page 8 of 9 Packet Pg. 74 0 .2 A4,* 17 OL X,-, z z 0 KEARBY-Fu .J I i I be 0 --CRE; CH i—CREECH V) IMBP 0 LOWER BIRDVILL/E RINGOALE--`0 Z-1 2 W C0 RUS-ry DELL--m 9 . a I 4r E 7. --CARL— .2 Haltom-City 0 CARNATION— BE.RNICE-J Z! 2 7--ERIS- -CATALPA /M. E M CNUTT- MCNUTT- CD X CL z p i ---r-o"-PARRI H 0 Uj z 0 j C0 z >__ ELLIOTT•REEDER r� acs WHEELER ea Uj z A -FOX- .9 FAIN MAURICE, C14 z .2 0 U) KINGS > Fort Worth IJNG OAKS CONWAY// co _01 —GODDARD 00 ('3ILMORJ 4) CHEN 0 --f4TH UOHLG o 0,25 0.5 SITE Ln MAP ran mob C14 PROPOSED Lennox Municipal Setting Designation Proposed Lennox MSD QRTWOIRTHO dololivi 4900 Airport Freeway LIWIN11 Fort Worth C.14 %AU1UW1VV11*4U.Alwq-11-2015 Page 9 of 9 E Packet Pg. 75 0 .2 z 0—KEARBY-W 0 .2 .J rn S2 2 0 z to—CREECH--CREECH- W z Z S RlNGDAI.E__'---'_0 0 uVVEMBIRDVILLE cl) 'DELL--- W L u 2 z N (a z S2 EAR 0 Itp it .2 M y -RUSTY 10 IV, I z C 0 5- Halt . ­+-CARNATIOW 0 0 uj 2 ]z U) ;I �—BERNICE I .�=-ERMIS- )-CATALPA- U 0 CNUT-T—Z- -MCNUT-T- 0 co PARRISH-1 PARRI H —- vo 9. 2 1 Lu W 0 0 2 z 1 . .... ELI UOT-T-REEDER—', ea 33 m WHEELER Z c FOX- C14 ..FAIL: 0 .��rG. o � z .2 0 U) > 0 KINGS Foittftrill 00 00 KING OAKS �CON WAY t. 0 GOD RD 0 -70. OA z uj 0 U- w� e Ln Ln L HENA N Q cm .;j :W 0 0.25 SITE Proposed Lennox MSD P7 C14 Miles MAP FstW*dh E PROPOSED Proposed Lennox MSO Lennox Municipal Setting Designation jaminsmat L j Fo rt Wo rth 4900 Airport Freeway Packet Pg. 76 B.4.a 0 City of Fort Worth, Texas Mayor and Council communication III_ CCJUNOIL A TI�?If Approved on 11/17'/20't5 Cird9n iriia NP.2197'4.11-IZp15 t 'Rea o�utton { No. 4540-'1'120'15. I11��1�11 ��11■IW YY IIIWIIY DATE: Tuesday, November 17, 2015 REFERENCE NO.: G-18611 LOG NAME. 23MSD 4900 AIRPORT FREEWAY SUBJECT. Conduct a Public Nearing,Adopt Resolution Supporting the Application of Lennox Industries, Inc.,for a co Municipal Setting Designation for the Property Located at 4900 Airport Freeway, Fort Worth,Texas, to the Texas Commission on Environmental Quality and Adopt Ordinance Prohibiting the Potable Use of .2 Designated Groundwater from Beneath the Site (COUNCIL DISTRICT 4) E RECOMMENDATION: It is recommended that the City Council: 1. Conduct a public hearing on the application of Lennox Industries, Inc,, for approval of a Municipal cm Setting Designation for the property located at 4900 Airport Freeway, Fort Worth Texas, a 24.7 acre tract o more fully described in the metes and bounds description Included with the attached resolution, to allow the public the opportunity to give testimony; 2. Adopt the attached resolution supporting the applicant's application to the Texas Commission on U) Environmental Quality for a Municipal Setting Designation for the site; and 3. Adopt the attached ordinance prohibiting the potable use of designated groundwater from beneath the site. co DISCUSSION: co On September 15, 2015, Lennox Industries, Inc., filed an application with the City seeking support of a Municipal Setting Designation (MSD) for a 24,7 acre site located at 4900 Airport Freeway, Fort Worth, Texas. The site is currently zoned K heavy industrial. Staff from the Planning and Development, Transportation and Public Works, Code Compliance and Water departments reviewed the application for potential impacts to City interests. No significant concerns were Identified. Notice was Issued, as required by ordinance and a public meeting was held at the Riverside LL Community Center on October 27, 2015. Ln The groundwater that is sought to be restricted is shallow, perched groundwater that occurs at depth down cm to about 20 feet and is underlain by a confining layer of approximately 300 feet in thickness. The affected shallow groundwater is not a designated, recognized major or minor aquifer. The chemicals of concern detected in the designated groundwater include 1,1-dichloroethene, cis-1,2-didichloroethene, tetrachloroethene, 1,1,2-trichloroethane, trichloroethene and vinyl chloride. cm The Fort Werth Water Department provides water service to all existing residential and commercial/industrial properties within the City of Fort Worth city limits, within half a mile of the MSD boundary. All undeveloped properties (within City limits)within half a mile of the site are eligible to receive Packet Pg. 77 0 water service from the Fort Worth Water Department, in accordance with the Texas Water Service .2 Certificate of Convenience and Necessity (CCN) No. 12311 and City policy for the installation of .2 community services. In 2003, a state law became effective creating the concept of a MSD. The purpose of a MSD is to certify properties in order to limit the scope of or eliminate the need for investigation of or response actions co addressing contaminant Impacts to groundwater that has been restricted from use as potable water by municipal ordinance. A person, typically a developer, must apply to the TCEQ for certification of their .2 property as a MSD. If granted,they will not be required to clean up designated groundwater on their site to drinking water standards, although other cleanup standards such as inhalation and contact must still be met. The application will not be approved by the TCEQ if the municipality where the site is located does °M not give formal approval. That approval must be by means of a City Council resolution supporting the application and an ordinance prohibiting potable use of groundwater in the MSD(potable water is water used for irrigating crops intended for human consumption, drinking, showering, bathing or cooking E purposes). co In January 2005, the City Council adopted an ordinance creating a procedure for persons applying to the TCEQ for a MSD to get support of that application from the City Council. The procedure includes filing an .2 application with the City, Staff review of the application for potential impacts to City Interests, a public meeting held for the purpose of providing information on the application to the affected community and a public hearing. C? The site Is located In COUNCIL DISTRICT 4, Mapsco 64P. cm FISCAL INFORMATION I CERTIFICATION: 6 z The Financial Management Services Director certifies that this action will have no material effect on City r_ funds. .2 0 FUND IDENTIFIER Fl Ds): U) TO un Department ccoun Project rogra ctivity Budget Reference# > 0 ID t I Year I (Chartfield 2) FROM Fund Department ctivilty Budget Reference # co 1� I co �JDM Year I...............(Chartfield 2) CERTIFICATIONS: Submitted for C! Manager's Office by: Fernando Costa (6122) E- Originating Department Head: Brandon Bennett (6345) 0 3: Additional Information Contact: Clarence Read (6107) U-I Ln Q cm cm E Packet Pg. 78 0 RESOLUTION NO. 2016-006-11 .2 RESOLUTION OF THE CITY OF HALTOM CITY, TEXAS IN SUPPORT .2 OF THE APPLICATION OF LENNOX INDUSTRIES, INC. TO THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY FOR A MUNICIPAL < SETTING DESIGNATION FOR 4900 AIRPORT FREEWAY, FORT S WORTH, TEXAS; AND PROVIDING AN EFFECTIVE DATE. co C .2 WHEREAS, Lennox Industries, Inc. ("Applicant") is pursuing a Municipal Setting Designation with the City of Fort Worth and the Texas Commission on Environmental 2M Quality ("TCEQ") for the site known as 4900 Airport Freeway, Fort Worth, Texas ("Site"), U) a map of same being attached hereto ("Site Map"); and WHEREAS, the City of Fort Worth passed Ordinance No. 21974-11-2015, prohibiting the use of designated groundwater beneath the Site for potable purposes as well as for irrigation; and co 7z WHEREAS, upon passage of this supporting resolution by the City Council of Haltom City, Applicant intends to file an application with the TCEQ for certification of a .2 Municipal Setting Designation for the Site pursuant to Texas Health and Safety Code, Chapter 361 , Subchapter W; and WHEREAS,Applicant has continuing obligations to satisfy applicable statutory and regulatory provisions concerning groundwater contamination investigation and response actions at the Site; and cm WHEREAS, the City Council has determined that the certification of a Municipal 6 Setting Designation for the Site is in the best interests of the community. z .2 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF 0 HALTOM CITY, TEXAS: U) Section 1. 0 That Haltom City supports Applicant's application to the TCEQ for a Municipal Setting Designation for the Site described in the Site Map. co Section 2. co -Phis Resolution shall become effective from and after its adoption. E Sth day of January, 2016. Adopted this 2 0 12 It W44�p, Ln Ln APRROVED BY: David Averitt, Mayor 0. ..... cm cm CA ATTESTED BY: SFAL 1 AWCamacho, City Secretary cm ex Packet Pg. 79 B.4.a 0 0 a 2 CO 2 U) CO Site Map �' a 2 0 U) Co Co Ln CD Cm Cm Packet Pg. 80 B.4.a 0 'Wit. _ 4w > aw r :,�� ••F t5" _. fir. t �, Y,� 4 rk.' we Y �Bi Haltom City �.; 0 U) i IV �" in16. N1 °� m. w. U) 19�mwL?Mlia � �^dl,�ll�Mip98wce;.MM4�.kMkAR Igixa.vRS9�k�A���4e`c.E� ti� Q 0 0 Fart Worth co U) r : 3 � C2 ?A i am ft MMUMME PROPOSED Lennox Municipal Setting Designation FORT WORTH, CM 4900 Airport Freeway CM Packet Pg. 81 B.4.b 112 MILE MUNICIPAL SETTING DESIGNATION(MSD) SITE MAP m„uuu C0 u 1/2 Mile P ii i Haltom City ii i i i i u i Y ii i i i u i i i i i ii i i i k k- r_ 0 0 U) I � 0 Fort Worth VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV C0 CL C0 C0 µ Target Property(TP) Former Lennox Industries TCEQ 1200 Maxine Street N Fort Worth, Texas wQQ�E 76117 �7 S 0' 600' 1200' 1800' SCALE:1'=1200' �S arch www.geo-search.com-phone:888-396-0042-fax:512-472-9967 JOB#:91230 - 10/21/2014 Packet Pg. 82 B.4.b WATER UTILITY DATABASE(WUD) SITE MAP h co IUD North_Richland Mills � IIIIIIIIIIIIIIIII'I �+� ��� �� ' Saginaw (0 3 ,Fiursfi art Richland-Hills Haltom City �0 z n Ippl� U) Fort Worth � �����IIIIIIIIIIIIIIIIIII i >�o����iii� �����!� iVVIIIIVVIIIIl011Vl111�91��tl ��� iuwumiii �i olgmo 111 Co Co co CL on C0 �� Arlington 1111P d µ Target Property(TP) Former Lennox Industries millllllm. WUD 1200 Maxine Street N Fort Worth, Texas WQN➢E 76117 S 0' 4250' 8500' 12750' SCALE:V'==8500' �S arch www.geo-search.com-phone:888-396-0042-fax:512-472-9967 JOB#:91229 — 10/21/2014 Packet Pg. 83 B.4.b 5 MILE MUNICIPAL SETTING DESIGNATION(MSD) SITE MAP co 5 NH/ 148 =®2 1136 0144 �" ,� 0150 y 6126 P `) I 151 .U) Haltom City" � North Richland-,ills �� SaglgaW Iw1 iz�6] N4 c 74 �" .145 0130 92 co l 112 X42 V . 38 40 097 a p II 11 2 53 29 // r� iHH� INIII35 3 4T 32 Ricihland Hill$ � t j// 136 133 65 39 9 i'51 57- 96 X106 61 ®46 23 4 X21 425, 27 54 96 y IIC�I miiiii 36 4119 4i®J-F ul 34 3i ®i] 116 d 20 9] �� fll��ll�IIIIIIIIIIIIIIII 9 60 ®60 I �IIII�III 3 12 qq 113'l IIIIIiiiii �'�62 .0435 '�10 N ®5 014 I W II V I� V �11IIIII 81 i' III(IIIIIII�����������W��ti .515111 IIIIIIIIIIIIIIII qr_ 10600 `v III ( 14 fi lell� r�2 ��� III ���� q V ®3 t) 9 14] III 26 � X22 153 f I� r ��11i32 t i I r d Ill l d�:p,52 69 66 � i1u I�I III I...ul� 0 T6 ]0 � 50 UIIIIII i 8681 ]569 156 II III rollpyWol lh l'� �IIp IIII��N49 01 X44 149 119 g5 ee ie]3 � ummm uIItI0111VIIVIl0111V11�1t��^ 1 � �1ze • 93 82 (IIII 109 X115 00 00 125 ���'105 103 41111 p � 121 1i9 99 6T 94 ��II s 131 ff�111 co 9h4 129 98 r'�123 22 CL 0] I 1 1120 1111 /�rli'�gton co co 91 r X142 Target Property(TIP) Former Lennox Industries TCEQ 1200 Maxine Street N u SSDRD Fort Worth, Texas 44 TWDB 76117 W E C3 ulllllllm. WUD S 0' 4250' 8500' 12750' SCALE:V'==8500' �S Se arc www.geo-search.com-phone:888-396-0042-fax:512-472-9967 JOB#:91228 — 10/23/2014 Packet Pg. 84 B.5 lqmk 1W Rib "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Consider authorizing city manager to execute a 36-month copier services lease agreement with Ricoh USA in an amount of $65,889.12 per year Presenter: Jimmy Perdue, Director of Public Safety Summary: City Council is being asked to authorize the City Manager to execute a 36-month lease agreement with Ricoh USA for copier services in the amount of $65,889.12 per year. General Description: On December 19, 2016, the City of North Richland Hills issued Request for Proposal #16-011 to establish a vendor to provide copier services for designated locations throughout the City of North Richland Hills. A total of 10 responses were received. The City's steering committee evaluated the responses and identified four vendors to be invited to participate in a proposal presentation to be held on January 29, 2016. Based on qualifications, experience, management, service and maintenance, supplies support and pricing, Ricoh USA was selected as the preferred vendor. Ricoh USA holds a Cooperative Purchasing Contract with the State of Texas Department of Information Resources (DIR). The lease pricing proposal was provided under DIR contract number DIR-TSO-3041. This streamlined cooperative purchasing program, that is available for state and local government entities in Texas, establishes competitively-bid contracts for technology products and services in compliance with applicable procurement laws of the State of Texas. By participating in the DIR cooperative, the City meets all State competitive bidding requirements. The lease will cover all the copiers throughout the City with the exception of one at NRH2O which does not expire until July 2017. Lease payments for the remainder of FY 15/16 will be shared by each department and is included in the City's operating budget for each department and fund. Future lease payments will be shared by each department and will be included in the recommended operating budget for each department and fund for FY 16/17 and FY 17/18. The total amount of the lease is $5,490.76 per month or $65,889.12 per year for a total of $197,667.36. The lease covers all service, toner, and staples. There is also a per page cost of .005 for monochrome and .045 for color. The City will be receiving a rebate from the manufacture in the amount of $72,300.00 for being a new Ricoh customer. Packet Pg. 85 B.5 lqmk 1W Rib "ArRok., NORTH KIC;HLAND HILLS This is a one-time payment that will be made within 90 days of the execution of the lease. Recommendation: To authorize the City Manager to execute a 36-month lease agreement with Ricoh USA for copier services in the amount of $65,889.12 per year. Packet Pg. 86 C.1 lqmk 1W Rib "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: RP 2015-10 Public hearing and consideration of a request from Winkelmann & Associates for a Replat of North Tarrant Marketplace Addition on 27.131 acres located in the 9100 block of North Tarrant Parkway. CONTINUED FROM THE FEBRUARY 8, 2016 CITY COUNCIL MEETING. Presenter: Clayton Husband, Principal Planner Summary: Winkelmann & Associates is requesting approval of a replat of North Tarrant Marketplace Addition. The property is located at the south side of North Tarrant Parkway between Davis Boulevard and Precinct Line Road. The plat is administratively complete and meets the requirements of the subdivision regulations. General Description: The original plat for North Tarrant Marketplace Addition was approved in April 2014 to accommodate the Kroger Marketplace development. Subsequent revisions to the plat have also been approved to further adjust lot lines and easements. This proposed replat will address the following: ■ Add three new lots at the southwest corner of the property for the construction of a new retail building, a fitness center, and a private open space lot for landscaping and tree preservation. • Add several easements for the construction of new water, sanitary sewer, and drainage infrastructure on the site. • Abandon several unneeded utility easements. The modifications to the plat are intended to facilitate the orderly development of the remaining property. The required construction of drainage facilities on Lot 14 requires the execution of the attached watercourse maintenance agreement. The agreement requires the owner to mow and maintain the property, remove debris in the watercourse area, and address any siltation or erosion that may occur. In addition, the attached easement abandonment will be executed following the dedication of the new easement and construction of the sanitary sewer line. COMPREHENSIVE PLAN: The Comprehensive Plan classifies this area as "Retail." This designation is intended to permit a variety of retail trade, personal and business services establishments, and offices. Packet Pg. 87 C.1 "ArRok., NORTH KIC;HLAND HILLS THOROUGHFARE PLAN: The property has frontage on North Tarrant Parkway and Precinct Line Road. North Tarrant Parkway is classified as a Principal Arterial (P6D), which is a six-lane divided roadway. Precinct Line Road is designated as a P7U seven- lane undivided Principal Arterial. Right-of-way dedication is not required on this replat for either roadway. CURRENT ZONING: The property is zoned NR-PD No. 69, with a base district of C-1 Commercial. The planned development was approved by City Council on June 24, 2013, for the construction of the Kroger Marketplace and associated development. The zoning includes a development plan that serves as a guide for all development on the property. The replat is consistent with the development plan. SURROUNDING ZONING / LAND USE: North: NR-PD No. 361 Retail West: C-1 Commercial I Retail South: R-1 Single-Family Residential and AG Agricultural I Low Density Residential East: located in Colleyville (office development) PLAT STATUS: The property is currently platted as Lots 4, 5, 7, 8, and 9, Block 1, North Tarrant Marketplace Addition. A portion of the site is also unplatted. The proposed replat would include Lots 4R, 5R, 7R, 8R, 9R, 12, 13, and 14, Block 1. PLANNING & ZONING COMMISSION: The Planning & Zoning Commission considered this item at their January 21, 2016 meeting and voted 7-0 to recommend approval of the replat. CITY COUNCIL: At the request of the applicant, City Council opened and continued the public hearing and postponed action on this item at their February 8 City Council meeting. Recommendation: To approve RP 2015-10, subject to the execution of the watercourse maintenance agreement and the contingent abandonment of the sanitary sewer easement. Packet Pg. 88 (0 pgWZ dM : z0 A deW mNav opgWZ dM :IU9WW)BPV 2 d a. 2 � ^6E %�»»§ acy I – ( � �LSE1Z 3��OS�11a10 S N I I � � r W TT/ � zw (� w � Y Q U N w° o U Q_ Q cnu �z� ,50„ E W oOf Q =moo m ¢ W (v �o � `"Q-\ 2E O 2' ¢ U O J C) 2-i I N J O cG U Uw Q w W u�o JUQ cwi�� �}I U (D = ciiW° V OZ°v ¢U .n o �� owe =m< W < �� N=om 00 M ¢2E o z \\ M w�, r 0 0 owl WI �¢ I � N L6 U J =< IL — — L2 J w� F J m J J H W 2E = C7 a m W v J O m w n O U �CO w o ¢ U U O Z I � s � I WUI < 2E W� wN 2' I I U w � W N W� <2E�o ' U I I < U II Qw° II ��U �� II � U w I � � J (nom M W w W I w� _ TW °° U 0 + x W K H I w� M0 H � m `V � - ° U ¢ U N Z N Z Z Z U H H Luuuµ{{{{ w D (<) m Z J w Q N z w Q d W W ¢ W W IO W H W W W> K =U Z m 0¢ 0} z °U �U Q IW N K Q J N W � LLl N W N (Uj 2 2 >N I K W Q H Q W U LL¢j N p N H U } Z Z S rn �Uj Q�m NS# Km sQ Lm N ¢w zz� �z z ° G1e / N �–85G 1°$9 L'v a v J ry 9 5 1 G^6—_ w -8 v G°j s_Z_i—�.91 b9~E ZS 6So00 Sv z U U � °m Wo � 68 3 ,86 > J 2E o N £Zl w m Q z¢ w W U a U z W > c W�owaW w 25 Q w (�¢ m co Q o J co \ E 0 \ \ \ a ( 2 - \ 3 § a -J - / 7 G f B 7 2 = [ = f c * § co S = ° $ § E £ E ® = o = o E c CU e § = o _ Co E \ x k E Co 2 \ / ( 2 / E / ® � E ® E � = t = o E 2 .- _ = e 7 = f / 2# * - f .E ) U) = 2 6 E e c iE 0 E / \ a § S § E .E § § § / $ co \ \ o « _ = E \ « £ _ 7 \ \ .2 ® § 7 0 co o o ._ _ c _ 5 q . \ \ k a 2 a 2e = @e ) =co ae 2 / / \ \ 9 = # ° 0 k \ \ e e = = E _ co a e e = e t oco _ e U 2 / J § \ \ / \ / E0 c 2 ° Co § B ° ) \ \ % 7 \ ) 7 .E = c= e / ( .E S co g e = = a / p � g o = . q f \ R E / \ \ § . / E 7 / 3 7 & \ _ = E C Co e m e \ S E' b o / L ® n b _ , ) 0 Co Co - O ± 7 * _ $ 3 E£ _ 2 = _ Co � w 0)-0 4) § \ § 'S 2 / \ tea ° '� R L � u = � - m k 2 Z e e % « m Co § o � 2 \ . E = 777 I \v L � § ua > = = E e a .. c E _ co § ° k e � '= o .c o Co § E m '/ 2 = _ / 2 ® _ \ = de 2 c E e . § m 2 m \ 7 Co c \ � \ / & § f S § / \ m \ / / 2 = � _ = Q Z e = a) = .g U) Co N o « = o q q M = E $ / \ E § m $ 7 a) � \ 0 \ \ / \ % q ® \ \ C.1.c CONTINGENT ABANDONMENT OF EASEMENT GRANTOR: City of North Richland Hills, Tarrant County, Texas Grantor, contingent on the platting of the property underlying the easement described herein and platting of a new sanitary sewer easement to replace the easement herein abandoned, and construction by the owner of the property of sanitary sewer in such new easement hereby abandons the following described easement: Ln oo cm EASEMENT ABANDONED: A 4,320 square foot sanitary sewer easement located in the T CL Peck Survey, Abstract No. 1209 North Richland Hills, Tarrant County, Texas, described in cm Exhibits A and B hereto. Grantor,having no further need therefor after such platting and construction, hereby abandons and releases the easements described above and on such Exhibits effective upon U) approval of a plat of the property as described above. w 4- 0 CITY OF NORTH RICHLAND HILLS r_ 0 By: Mark Hindman, City Manager ACKNOWLEDGMENT STATE OF TEXAS § 0 § Ln COUNTY OF TARRANT § oo cm 0. This instrument was acknowledged before me on this date by Mark Hindman, City Manager of the City of North Richland Hills, a Texas municipality, who acknowledged to me that he executed same for the purposes and consideration, and in the capacity therein expressed, as the act and deed of such municipality. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of February, 2016. Notary Public in and for The State of Texas Packet Pg. 92 EXHIBIT A C.1.c N' FORTH'TARRA,NT E MARKETPLACE ADDITION CC##D21'4082521 BLOCK 1 .ACCESS,.DRAINAGE,SANITARY S SEINER,AND WATER EASEMENT- CC#D214062821 0' 30, 6o, f Scale 1 ,_6°. . 0a LO.T 9R Ln 77 POINT OF 10'UTILITY EASEMENT POINT CC#0214062521 LLJ r .. iV 15'SANITARY SEWER EASEMENT CC#0198275314 N "VOLUME 13532„PAGE 94 -fir LO GS G? 4) DRAINAGE EASEMENT U7 CC#0201115137 VOLUME 14901,PAGE 327 0 N88048"1 a"E 84.04' SANITARY SEWER EASEMENT C00199212928 VOLUME 13971,FADE 626 589 008°08"W in Lu ILL Jiii, 20.51'_ O 45°4 ' POINT OF U BEGINNING <t CD E r_ A-S 116 NOR e0 PKWY-PRECVVNCT LIVE, I- P SANITAAREYASNDgNM Nr IV8an56'1S"dy 3 ORTH TARRAr CC##D214047012 0.099"I'll 3a.�3 ' MARKETPLACE Ln (4,320 SQ.FT.) S01°11'50"E ADDITION r D 140 C 625 CL 10.24' LOCK 1 cm 15"SANITARY SEWER OT EASEMENT CC 021462521 10'UTILITY EASEMENT CC#D214062521 --fl ! Winkelmann rW & SEWER ABANDONMENT Associates, Inc. OF F ��* Y � 0.000 ACRES CONSULTING CIVIL ENGINEERS ". SURVEYORS off.& ,�''�-m °� �a �+ SHEET 97so Iruut r PLAZA n9rve,swam 325 197x}490-7090 a W t �°J' r3 I .� DALLAS,TEXAS 75230 (972)400-7099 FAX d 'yi F E rym .%gM tl Np 8g oe. Y - - FGmP�eg a f'q5 a,NC.1U'alari 04N Epir�592-:�,_a� .. �.,E I. �, NEWS QUEST PROPERTIES COPYRIGHT eO�2715 lMimkeanrarin�.gsso�ciaxte.,Iroa. .... .... ; M / Scale: 3 8807 W. SAM HOUSTON PARKWAY OF $ el Date. 1230.15 �. SUITE 200 D22.File:. 59411.OA-ESMr-ABAN-EXHIBJT �. °''n, a"° a P�aeclNe.: 59411©a HOUSTON, TEXAS 77040 �:tissalllleArsuRVEVIe=xr,IbIi5I59a11.aa-ESr�I-r-ABraN-exrllBl-�m�q Packet Pg. 93 CA.c EXHIBIT B SEWER ABANDONMENT DESCRIPTION STATE OF TEXAS § COUNTY OF TARRANT§ BEING a tract of land situated in the THOMAS PECK Survey, Abstract No. 1209, City of NORTH RICHLAND HILLS, TARRANT, County, Texas and being a portion of a tract of land as described in deed to A-S 116 North Tarrant Pkwy-Precinct Line L.P., by deed recorded in County Clerk's file No. D214047012, Official Public Records, Tarrant County, Texas, and being more particularly described as follows-, COMMENCING at the Northeast corner of said tract, and said point also being on the Westerly Line of Lot 7R, Block 1, of North Tarrant Marketplace Addition, an addition to the City of North Richland Hills, Tarrant County, Texas, according to the 7 i plat thereof as recorded in County Clerk's Instrument No. D214062521, Plat Records, Tarrant County, Texas, C14 CL THENCE South 00 deg 51 min, 52 sec East(Basis of Bearing), along the Easterly Line of said tract, a distance of 221.60 feet to a point,- C14 Q CD THENCE South 88 deg 08 min 08 sec West, departing the Easterly Line of said tract, and over and across said tract, a distance of 20.51 feet to the POINT OF BEGINNING; E THENCE continuing over and across said tract the following: 4) U) M W South 01 deg 11 min 50 sec East, a distance of 15.24 feet to a point for corner-, 4- 0 North 80 deg 55 min 15 sec West, a distance of 330.87 feet to a point for cornier-, E r_ North 88 deg 48 min 10 sec East, a distance of 84.04 feet to a point for corner, 0 THENCE South 80 deg 55 min 15 sec East, over and across said tract, a distance of 245.45 feet to the POINT OF BEGINNING; CONTAINING within these metes and bounds 0.099 acres or 4,320 square feet of land, more or less. S 0 Bearings shown hereon are based upon an on-the-ground Survey performed in the field on the 26th day of August, 2012, utilizing the City of North Richland Hills Geodetic Control Stations "GPS-28" and "GPS-30", along the west line of Li Block 1, North Tarrant Market Place Addition having a bearing of South 00 deg 51 min 52 sec East (plat- S00'51'52"E), recorded in County Clerk's Instrument No. D214062521, Plat Records, Tarrant County, Texas. CM CL E Winkelmann 0 F 'r SEWER ABANDONMENT & Associates, Inc. 0.099 ACRES CONSULTING CIVIL ENGINEERS 0 SURVEYORS SHEET 6750 HI PLAZA DIFINT.SUITE 325 9AI % (4,320 SQ. FT.) LLOPEST (972)490-7090 VI ; DALLAS.TEXAS 75230 (11 4W-IM FAX I I kF T-5 Engineous Rq,g,afion No 89 F­R. No.1008N00 E-i­12-31-15 NEWQUEST PROPERTIES Ca 'Rii r 2DI5 Wokelmann A­o,L,s P- Scaore; NIA % S OF 1 8807 W. SAM HOUSTON PARK T Date: WAY 123015 Dw,q.File: 59411 OA-ESMT-ARAN-EXHBIT N., SUITE 200 2 Project No.: 59411.OA HOUSTON, TEXAS 77040 1 G�594slltiOA�SURVEYtiExhibtts�59411.OA-ESM"I"-ABAN-EXHII IT.Owq Packet Pg. 94 .. ..............­­_­.................... DETENTION/RETENTION STORAGE FACILITY MAINTENANCE AGREEMENT KNOW ALL MEN BY THESE PRESENTS THAT: WHEREAS, by plat denoted as North, Tarrant Marketplace Additiion; Block 1, Lots 1-.111 (hereinafter referred to as "North Tarrant Marketplace") within the City of North Ln T- Richland' Hills, Tarrant County, Texas, A-S, 116 North Tarrant Pkwy-Precinct Line, Q cm L.P. was permitted to develop the site described thereon in accordance with such plat; CL and cm WHEREAS, such North: Tarrant Marketplace Addition required construction on the property of a facility to provide a storm water detention/retention facility (hereinafter referred to as "Detention/Retention Facility") for the development of North Tarrant Marketplace Addition to minimize potential flooding of downstream property; North Tarrant Marketplace Addition and WHEREAS, the City is willing to permit A-S 1116 North Tarrant Pkwy-Precinct Line, L.P. to construct a Detention/Retention Facility in accordance with plans approved by the City, provided that A-S 116 North Tarrant Pkwy-Plrecinct Line, L.P. agrees to maintain such Detention/Retention Facility. 0 Z NOW, THEREFORE, A-S 116 North Tarrant Pkwy-Precinct Line, L.P. at its sole cost and expense agrees to the following: E 1. Adhere to the requirements of the City Code, specifically Chapter 102: "Floods andl Storm,water Management", Article III: "Stormwater Management". 2. Construct the Detention/Retention Facility in accordance with plans sealed by a licensed professional engineer registered in, the State of Texas and specifications approved by the City. 3. Construct the landscaping in accordance with the Landscapingi Plan and included Ln as Exhibit "A". cm a. 4. Mlaintain the Detention/Retention Facility in a prudent manner to minimize soil 0� erosion and loss of capacity due to sedimentation. E 5. Be responsible for the following: a. Keep grass and vegetation mowed and maintained in the Detention/Retention Facility and all areas around the Detention/Retention Facility controlled by A- S, 116 North 'Tarrant Pkwy-Precinct Line, L.P. based on the following schedule: Page lof4 PW75DRMA (Revised 4102120,07) 1 Packet Pg. 95 i., once every three (3) weeks between March 1st - April 10th and between October 1 st- November 15th. ii. once every other week during the growing season between April 10th ,October 1st. b. The upkeep and replacement of all landscaping. Ln T- C. Operation and maintenance of any aeration systems (including power cost Q cm and replacement cost). CL cm d. Trash and debris removal once a week or after a storm event, whichever is more often. e. Operation and maintenance of decorative lighting around' the basin, if included. f. Any necessary dredging or silt removal from the basin and/or inlet and outlet structures. g. Repair and replacement of decorative fencing., h. Any "'specialty" 0' items not covered by any other party. z i. All necessary grading to insure that detention basins drain completely. E 6. Should A-$ 116 North, Tarrant Pkwy-Precinct Line, L.P., or the then current owner of the property described herein, fail to remedy any inadequacy in its maintenance of the Detention/Retention Facility within twenty (20) days of receipt E of written, notice from the City, the City may, but shall not be obligated:, to provide 0 such maintenance that it shall reasonably deem necessary and all costs thereof shall be reimbursed to the City by A-S 116 North Tarrant Pkwy-Precinct Line, L.P., or the then current owner of the property described herein, upon written demand therefor, If A-S 116 North Tarrant Pkwy-P,recinct Line, L.P., or the Ln then current owner of the property described herein, fails to so reimburse the City within ten (10) days of such written demand, the City shall have a lien against cm North Tarrant Marketplace Addition for such amount. By acceptance of this Agreement, the City agrees to execute a certificate (addressed to the party requesting same) within ten (10) days of written request therefore, stating E whether or not any amounts are due and owing from A-S 116 North Tarrant Pkwy-Precinct Line, L.P., or the then current owner of the property described herein, pursuant to this Agreement. 7. The agreements made herein shall be binding upon, the A-S 116 North Tarrant Pkwy-Precinct Line, L.R.'s successors and assigns and shall be a covenant running with the land'. Page 2 of 4 PVV75DRMA (Revised 410212007) 1 Packet Pg. 96 8. ThJs agreement shall not be amended, changed or modified without the written consent of the City of North Richland Hulls, Executed this the day of 'I1%44,� 201& 7 By: Ln CN Printed Name: vv.i, S CL Title: AA cm Q STATE OF TEXAS COUNTY OF HARRIS BEFORE ME, the undersigned authority in and for Harris County, Texas, on this 2 day personally appeared known to me to be the person 1� 0 whose name is subscribed to the foregoing instrument, and acknowledged to me that z he/she executed the same for the purposes and consideration therein expressed. E GIVEN UNDER MY HAND AND SEAL OF OFFICE, on this theme day of 0 c"o Notary Public in and for the State of Texas Type or Print Notary's Name Ln My Commission Expires: cm cm NANCEE OSI r,wafy Fumc,siale of T, 0 My corwimissorl Exi� Apffl 17, 20117 Page 3 of 4 PW75DRMA (Revised 410212007) 1 Packet Pg. 97 Ln CI4 CL CI4 Q Exhibiit "A" Detention/Retention Facility Landscaping Plan 0 z 0 0 Ln T- oo Cm Page 4 of 4 PW75DRMA (Revised 410 212007) 1 Packet Pg. 98 v uQi a v F K - `- LL Z W ID w 7Lo LLID-SLDVII WD o. r— - O Z — O Y kN jO UIO-UM I U13 E.W RO A r ow pJ.PREC�T LIN��- — z Li IpVARIABLEWIDTHRIGHT-OF-N , maJ 233.33' a m S 02°16'50"E 25 BUILDING LINE `�il� o oQY cl JI I m` M zs 158.35' - 3Nn mvaisev�oldouvool aiv��lxoaaav n w - °r.c v x I,i r, w o N — — I � � — — — — S01°11'50"E — - - _ — � ZaF J 276.77 1 S0�°11'�50rE o zz� °�� CD o e <s --COOO= o e vw m- v, I N 00 W � L6 a"a ss II I U) zT� I I I J IL--� L2 — —_ < II II we �I - - - - - � - - F I _ >>>>>> y>,>x'=o ~I I >6 zn I> I `` `III a� > >>a a e s >>>\,X W} w� e� dI0 l Z j:i o m -- I 12 L FWON 1zam >w Z I % _ p AIM � o w } c� ° L 884L�Z4 L404$ 88'�BZ 3.04��0�09 9L �- �9Lk9fl � � — I.ol ell 1 I w NI J z VIII I Iy7 11 b, W I I� Lii 04LL LOIJ w m i l l I I I y ool MX"I M.oaatsloN - I r 291.90' Hu H v � - c m o — — \.% - M.I <� m � — - -� cM1 B=1EE Ob 88Z 1 — a 2 ors m rl \ \y = `E m �E iE W Q K L > K� F L C W¢F w 2 o W_ _ 2i K M O-_ F a- Z w �z F I U< F Z- O W. 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Z. - �rn3_0 C"a_7 c . o=5 E r Q_w o m f_So m,;_a-r7 x� ° °m o. r ry n - o ° a ¢ mz "o o m - - °a_ ry E x a u C73 ox w -2.5 - _>E n o 2 vz ?i _ m _ o m°�o> -o 3 O_ L - O = _ o° _ �w o 5 r >F? 0 cz ° °_� n m� n z i_ 3 7 r� „ m m r o _m Excerpt from the minutes of the January 21, 2016 Planning and Zoning Commission meeting D.2 RP 2015-10 Consideration of a request from Winkelmann & Associates for a Replat of North Tarrant Marketplace Addition on 27.131 acres located in the 9100 block of North Tarrant Parkway. Ln APPROVED cm Clayton Husband came forward to discuss the Replat cm Michael Clark, 6750 Hillcrest Plaza # 325, Dallas TX 75230, representing New Crest Properties and the developing of LA Fitness, came forward to present the application. MARK HAYNES MOVED TO APPROVE RP 2015-10. MIKE BENTON SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7-0. U) 2 0 0 CL 0 L- 4- X Packet Pg. 101 CAA ,a o. North Tarrant Pkwy CL XXXXX I El CL F-F\ FRI mm w m a� J C3 Packet Pg. 102 C.2 "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: ZC 2015-24, Ordinance 3395, Public Hearing and consideration of a request from Dunaway Associates, LP for a revision to Planned Development 36 (PD-36) located in the 9000-9100 blocks of North Tarrant Parkway including adjacent parcels on Davis Boulevard and Precinct Line Road. Presenter: Clayton Comstock, Planning Manager Summary: Slim Chickens proposes to construct a new restaurant on the north side of North Tarrant Parkway between Davis Boulevard and Precinct Line Road. The business is an Arkansas-based fast casual restaurant with several Texas locations. The restaurant has an existing location on North Tarrant Parkway in Fort Worth, approximately five miles west of the site under consideration. Construction recently started on a site on Precinct Line Road just south of Airport Freeway. Additional information about Slim Chickens is online at www.slimchickens.com. General Description: A complete site plan package is attached. Planned improvements to the 1.25-acre site include a 4,086 square-foot building, covered outdoor dining area, and parking and landscaped areas. The business operation also provides drive-through service. Access to the site is from an existing driveway on North Tarrant Parkway that is shared with Walgreens and from the Wal-Mart parking lot. The property is zoned as Planned Development 36 (PD-36), which was approved in March 2001. One of the conditions in PD-36 is that all site plans for other development in the district must be reviewed and approved by the Planning and Zoning Commission and City Council. These site plans are processed as an amendment to PD-36 and follow the standard zoning amendment process. There have been five amendments approved since the adoption of the zoning. The most recent amendment was in 2008 for the site plan for Jack in the Box located at 8416 Davis Boulevard. The application for an amendment to PD-36 provides an opportunity to address modifications to specific development standards for the site. These modifications are described in more detail below. All other development standards have been satisfied. Refuse container gate Packet Pg. 103 C.2 "ArRok., NORTH KIC;HLAND HILLS The applicant is requesting that the refuse container enclosure include the gates faced with a synthetic wood product. The zoning standards require the enclosure gates to be a minimum 20 gauge metal material. This proposal reflects the recommendation of the Planning & Zoning Commission to change from a rough-sawn cedar gate to the synthetic wood. Recent zoning requests approved the use of a on the gates manufactured by Trexo, which is constructed from 95% recycled materials. That product was approved for the Andy's Frozen Custard and RaceTrac zoning cases. Landscaping There is a number of existing water, sanitary sewer, and drainage easements that affect the property, including several that cover the front of the lot adjacent to the North Tarrant Parkway right-of-way. Two adjustments to the site plan are proposed. 1. The easements along the front of the lot limit the ability to plant the required street trees on North Tarrant Parkway. The applicant proposes to relocate the five required trees along North Tarrant Parkway to the landscaped area on the western property line. The DRC originally suggested that additional ornamental trees be planted in the right-of-way to provide landscaping in the front of the property. After evaluating the location of the ornamental trees and discussing the design with the City Engineer and Parks department, it was determined that the City would prefer to maintain the ability to design the landscape within the right-of-way in the future. In lieu of planting the six crape myrtles as shown, the applicant has agreed to increase the size of the five required trees from three caliper-inches to four caliper-inches. 2. Due to other easements on the property that restrict the planting of trees, the parking spaces on the east side of the lot do not meet the standard of being located within 100 feet of a large tree. The DRC recommends a deviation from this standard as part of the zoning approval of the site plan. COMPREHENSIVE PLAN: This area is designated on the Comprehensive Land Use Plan as "Retail." This designation is intended to permit a variety of retail trade, personal and business services establishments, and offices. CURRENT ZONING: The property is currently zoned Planned Development (PD-36), which has a C-1 Commercial base zoning district. The purpose of this planned development is to provide for a retail/grocery center (Wal-Mart) and pad sites for future development. The original zoning was approved in 2001. It has been amended five times to accommodate development of two retail centers, a gasoline facility, a bank (Woodforest National Bank), and a quick service restaurant (Jack in the Box). PROPOSED ZONING: The applicant is requesting an amendment to PD-36 in order to adopt the site plan for a new fast casual restaurant. SURROUNDING ZONING ( LAND USE: Packet Pg. 104 C.2 "ArRok., NORTH KIC;HLAND HILLS North: C-1 Commercial Retail West: C-1 Commercial Retail South: C-1 Commercial Retail East: C-1 Commercial Retail PLAT STATUS: The property is currently platted as Lot 4, Block 1, Wal-Mart NRH Addition. PLANNING & ZONING COMMISSION: The Planning & Zoning Commission held a public hearing and considered this item at their February 4, 2016 meeting and voted 5-0 to recommend approval subject to the dumpster enclosure gate being made of a synthetic wood material. Recommendation: To approve Ordinance 3395, subject to DRC certification of the final site plan. Packet Pg. 105 m cc o N r U � PMa u i-1 P u i 3 as d ww, iVmuuioppuuuuowquuuuuwuuuumoipuu IL uuuuuwuuuuuoipuuuuuopuu .wu�oipmm�,wy�wuiV,�°i!I piu,, y Y V IL A a c� c� 0 z 8s O r l II r r ✓Y" � � t„ 7"��i ����� ¢�It �rtr � wli' � i rr trvl � t �J. I r ci 9 IN lowo ✓ � j / /i ' r Co rrry /.-, ,l, 61 � � � ,fI�F ) S� 'ry'//�i%/�% ��,,, , I- ( l'",�r�lilfVllJA� �!,wiir, r,. ��Y ( " � ,➢Y' ;� /��1,,,,�,�.. .� •may ,al� J� ff Ir( I ( �� ��f 1 X� e � fl1 f ���rw/� A �% /0 �r q� x (t t dt m rG'titi Y PIG!1M1 tl�r i ti„”ji!I ® 4 t ti I 'urt^-.�t it 11Cit7���11 �u �t I 4 t Ir i� I rb i Ilm u,. p 1 r North Tarrant Pkw. unti � 1 J , Packet Pg. 107 L � C.2.c `CHL,g d NOTICE OF PUBLIC HEARINGS CITY OF NORTH RICHLAND HILLS .. :: PLANNING AND ZONING COMMISSION TExPS AND CITY COUNCIL Case Number: ZC 2015-24 Applicant: Dunaway Associates, LP Location: 9000 - 9100 blocks of North Tarrant Parkway Ln oo including adjacent parcels on Davis Blvd and Precinct Line Rd N co You are receiving this notice because you are a property owner of record within 200 feet of the property shown on the attached map. Purpose of Public Hearing: 0 A Public Hearing is being held to consider a request from Dunaway Associates, LP for a revision to Planned Development 36 (PD-36) located in the 9000-9100 blocks of North Tarrant Parkway including adjacent parcels on Davis Boulevard and Precinct Line Road. Public Hearing Schedule: cm Public Hearing Dates: PLANNING AND ZONING COMMISSION Ln 7:00 PM THURSDAY, FEBRUARY 4, 2016 cm to CITY COUNCIL 7:00 PM MONDAY, FEBRUARY 22, 2016 Both Meeting Locations: CITY COUNCIL CHAMBERS 7301 N. E. LOOP 820 NORTH RICHLAND HILLS, TEXAS If you have any questions or wish to submit a petition or letter concerning the above request, please contact: Planning Department - City of North Richland Hills 7301 Northeast Loop 820 North Richland Hills, Texas 76180 Phone (817) 427-6300 Fax (817) 427-6303 Packet Pg. 108 C.2.d 8955 TARRANT LLC WAL-MART REAL ESTATE BUS TRUST SINGH SOHAN ETAL Attention: REAL ESTATE TAX DEPT- Attention: % RE PROERTY TAX MS 0555 Attention: MANJIT& HERMINDER SIN STORE#052114-S PO BOX 8050 103 BELMONT PLACE CIR PO BOX 1159 BENTONVILLE AR 72712-8055 SOUTHLAKE TX 76092-5123 DEERFIELD IL 60015 WOODFOREST NATIONAL BANK CHAVEZ BROTHERS INC GRAHAM WES M SR Attention: %WM L TOWNSEND 12817 WHISPER WILLOWS DR GRAHAM LELANIA 1330 LAKE ROBBINS DR STE 100 HASLET TX 76052 26509 HAWTHORNE RD SPRING TX 77380-3267 CARL JUNCTION MO 64834-8415 MURPHY OIL USA INC WACHOVIA BANK NA PROVIDENT CAPITAL LLC 200 E PEACH ST Attention: MACA 0109-101 1820 BONANZA ST STE 200 EL DORADO AR 71730-5836 333 MARKET 10TH FL ST WALNUT CREEK CA 94596-4376 SAN FRANCISCO CA 94105 Ln JPMORGAN CHASE BANK 0 CITY OF COLLEYVILLE Attention:ATTN MGR REAL EST BLUE STONE REAL ESTATE GROUP a. COMMUNITY DEVELOPMENT BUSINESS SER 1999 BRYAN ST STE 900 100 MAIN STREET 575 WASHINGTON FL 4TH BLVD DALLAS TX 75201-3140 COLLEYVILLE, TEXAS 76034 JERSEY CITY NJ 07310-1616 BRINKER TEXAS LP NOORNEEL LLC SUMMIT COMMUNITY BANK NA Attention:ATTN TAX DEPT 704 GATESHEAD CT PO BOX 16509 SOUTHLAKE TX 76092 6820 LYNDON B JOHNSON FWY FORT WORTH TX 76162-0509 DALLAS TX 75240-6511 I- SS DAVIS INVESTMENT LLC ETAL GEMBA COLLEYVILLE LLC BOMAC SIGNATEL INV LLC 300 STOCKTON DR 2400 BROADWAY ST PO BOX 96011 SOUTHLAKE TX 76092-2226 BEAUMONT TX 77702-1904 SOUTHLAKE TX 76092 2 Ln BOMAC DAVIS INVESTMENTS LLC FORT WORTH COMMUNITY CREDIT UN INLAND WESTERN N RICHLAND H D PO BOX 96011 PO BOX 210848 PO BOX 9273 SOUTHLAKE TX 76092-0111 BEDFORD TX 76095-7848 OAK BROOK IL 60522-9273 0 A-S 116 NORTH TARRANT PKWY- KROGER TEXAS LP ea TARGET CORPORATION Attention: PRECINCT LINE LP Attention:ATTN REAL ESTATE DEPT PO BOX 9456 MI NNEAPOLIS MN 55440-9456 8827 W SAM HOUSTON 200 PKWY N 1331 E AIRPORT FWY MI HOUSTON TX 77040 IRVING TX 75062-4818 Keller Independent School District Attn: Hudson Huff 350 Keller Parkway Keller, TX 76244 Packet Pg. 109 C.2.e ORDINANCE NO. 3395 ZONING CASE ZC 2015-24 AN ORDINANCE REVISING THE COMPREHENSIVE ZONING ORDINANCE AND THE ZONING MAP OF THE PLANNED DEVELOPMENT 36 OF THE CITY OF NORTH RICHLAND HILLS, TEXAS FOR THE PURPOSE OF APPROVING A SITE PLAN FOR LOTS 1A, 113, 2, 3, 4, 5, 6R AND 7R, BLOCK 1, WAL-MART ADDITION, LOCATED IN THE 9000-9100 BLOCKS OF NORTH TARRANT PARKWAY, INCLUDING ADJACENT PARCELS ON DAVIS BOULEVARD AND PRECINCT LINE ROAD; ESTABLISHING A PENALTY; PROVIDING FOR PUBLICATION; AND PROVIDING AN EFFECTIVE DATE. cm Ln WHEREAS, notice of a hearing before the Planning and Zoning Commission was sent cm to real property owners within 200 feet of the property herein described at 0 least 10 days before such hearing; and, co co WHEREAS, notice of a public hearing before the City Council was published in a newspaper of general circulation in the City at least 15 days before such Ln hearing; and, WHEREAS, public hearings to zone the property herein described were held before both the Planning and Zoning Commission and the City Council, and the as Planning and Zoning Commission has heretofore made a recommendation concerning the zone change; and, cm Ln WHEREAS, the City Council is of the opinion that the zone change herein effectuated cm furthers the purpose of zoning as set forth in the Comprehensive Zoning 0 Ordinance and is in the best interest of the citizens of the City of North Richland Hills; E NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: Section 1: THAT the Comprehensive Plan, the Comprehensive Zoning Ordinance and the zoning map of Planned Development 36 of the City of North Richland Hills are hereby revised for the purpose of approving a revised site plan attached hereto as Exhibit A, for Lots 1A, 1 B, 27 37 47 57 6R, and 7R, Block 1, Wal-Mart Addition in the City of North Richland Hills, Tarrant County, Texas, located in the 9000-9100 blocks of North Tarrant Parkway, including adjacent parcels on Davis Boulevard and Precinct Line Road for the purposes of new construction on Lot 4. Ordinance No. 3395 Page 1 of 2 Packet Pg. 110 C.2.e Section 2: The use of the property described above shall be subject to the restrictions, terms and conditions set forth in the site plan attached as Exhibit A. Unless otherwise provided in Exhibit A and to the extent not modified in the site plan, the Property shall be governed by all applicable regulations and all other applicable ordinances of the City of North Richland Hills. Section 3: Any person, firm or corporation violating any provision of the Comprehensive Zoning Ordinance as amended hereby shall be deemed guilty of a misdemeanor and upon final conviction thereof fined in an amount not to exceed Two Thousand Dollars ($2,000.00). Each day any such violation shall be allowed to continue shall constitute a separate violation and punishable hereunder. cm Ln Section 4: The City Secretary is hereby authorized and directed to cause the cm publication of the descriptive caption and penalty clauses of this ordinance 0 as an alternative method of publication provided by law. co co Section 5: This ordinance shall be in full force and effect immediately after passage. Ln AND IT IS SO ORDAINED. PASSED AND APPROVED on the day of 2016. CITY OF NORTH RICHLAND HILLS cm Ln cm By: c) Oscar Trevino, Mayor ATTEST: Alicia Richardson, City Secretary APPROVED AS TO FORM AND LEGALITY: Attorney Ordinance No. 3395 Page 2 of 2 Packet Pg. 111 C.2.e APPROVED AS TO CONTENT: Department Head Ln to Ln S Ln to Ordinance No. 3395 Page 3 of 2 Packet Pg. 112 L O X Q O O X Q O pQHQ z Z O Z O (n Z Q z c) w 0 z w � � z ��o= � Q o U o w o Q o J J w U _j Q X Q O D O Q D Q w J J m J m Q m J II M:II M II M II II r / a p./a aa�a. a.�a. /a Ja�,�aa Vll w ° Q C-D � � � 'LL, — Q W CD C) 'g Cn � UZ J f 19.9to 3„19 ,BZ ,BOOS 7 �W z .low o W NW L-QZ' �► v'o c i LLJ �• � ,r ot 1 Z0: Jam', W .6 .6 .6 W� .0� J 4 �� co cy LU Z� W U U\ >3 Y Q 3 m C.5 O O i' Z .. 0. 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LO � O i wl Z#to (� N L.L Z J 0U Q Z ON � Q 0 ED 0 wUU LU m � Q C) ofU U§� m f I f I ' a 0 sm m -1U Q D0U Ulm � � O w Z z m > Z I' O 0 O O I' o � 0 z o = 00 cn Z/(6 L S-,£ O O C.2.g C.1 ZC 2015-24 Public Hearing and consideration of a request from Dunaway Associates, LP for a revision to Planned Development 36 (PD-36) located in the 9000-9100 blocks of North Tarrant Parkway including adjacent parcels on Davis Boulevard and Precinct Line Road. Clayton Husband made staff's presentation on the zoning change request for a Slim Chickens fast casual restaurant. Chris Biggers, Dunaway Associates, 550 Bailey, Fort Worth, asked if the Commission had any questions with the site plan and introduced Tim Kraftson with Slim Chickens. cm Ln Tim Kraftson, 5528 North Tarrant Parkway, Fort Worth, introduced the Slim Chickens cm restaurant concept to the Commission. 0 co Chairman Shiflet asked if Mr. Kraftson managed the existing restaurant in Fort Worth, if co this would be a franchise location and if the NRH location would be run similar to Fort Worth. E Mr. Kraftson responded in the affirmative to all parts. E Chairman Shiflet asked about Mr. Kraftson's thoughts on the dumpster enclosure screening. OX CL Mr. Kraftson indicated that corporate is moving away from the rough-sawn cedar wood planks and going with the composite material anyway, so he accepted the proposal for cm a composite material on the dumpster enclosure gates. cm Chairman Shiflet opened the public hearing at 7:14 p.m. 0 I- William Jacobs, 8309 Thornhaven Court, filled out a card did but not wish to speak. No position was indicated on the card. X Chairman Shiflet closed the public hearing at 7:15 p.m. BILL SCHOPPER MOVED TO APPROVE ZC 2015-24 WITH THE PROVISION THAT A COMPOSITE MATERIAL BE USED ON THE DUMPSTER ENCLOSURE. MIKE BENTON SECONDED THE MOTION. MOTION TO APPROVE CARRIED 5-0. Packet Pg. 119 C.3 "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: SUP 2015-08, Ordinance 3396, Public Hearing and consideration of a request from USA Shade & Fabric Structures for a variance to the masonry requirement for proposed shade structures at 7769 Boulevard 26. Presenter: Clayton Husband, Principal Planner Summary: On behalf of Autonation Fort Worth Motors, USA Shade & Fabric Structures is requesting a Special Use Permit (SUP) to authorize a waiver to the masonry requirement for new auto shade structures to be constructed at the Autonation Chevrolet dealership. The 16.064-acre property is located at the northwest intersection of Boulevard 26, Davis Boulevard, and NE Loop 820. General Description: Section 118-713 of the Zoning Ordinance establishes standards for permanent and temporary auto shade covers. Permanent shade covers are permanently attached to the ground with a rigid framework and flexible membrane canopy that covers an area of 500 square feet or more. The shade covers are allowed to be constructed in the front, side, or rear yards of the property, provided they do not obstruct emergency vehicle access. The covers must be a solid subdued color and may not contain any advertising sign or logos. The applicant proposes to construct 11 permanent auto shade covers on the property. Eight of the shade covers would be located between the building and adjacent streets, and three covers would be built in the interior and rear of the site. The total covered area would be 85,394 square feet and provide coverage for 470 vehicles. The canopy would be constructed in a dark blue color. A site plan showing the proposed location and size of the shade covers is attached. Since the shade covers are considered structures, the standards for exterior materials will apply. This requires that the columns for the shade covers be constructed with a masonry material such as brick or stone. The applicant has applied for an SUP to authorize a waiver of this requirement, as permitted by the Zoning Ordinance. The new construction of the shade structures also causes the landscaping and buffering standards to apply to the entire site. The standards are based on the Freeway Corridor Overlay District. The improvements required by the code include landscape setbacks on Packet Pg. 120 C.3 "ArRok., NORTH KIC;HLAND HILLS all street frontages, a 15-foot wide buffer yard and 8-foot tall screening wall on the common property line with the adjacent single-family residential properties, and certain hardscape elements that include Leuders Limestone material. While it is not part of the SUP application, the Development Review Committee is reviewing a landscape plan for the site. The existing property is non-conforming to the landscaping standards, and the applicant is proposing an alternative landscape plan that will be considered by the Landscape Review Board in the near future. The site has been used as an auto dealership since at least 1968. Section 118-203 of the Zoning Ordinance provides that special use permits may establish reasonable conditions of approval on the operation and location of the use to reduce its effect on adjacent or surrounding properties. The following are the proposed conditions of approval for this SUP application. 1. Site plan. The auto shade structures must be installed in accordance with the site plan. 2. Compliance with development standards. Construction of the auto shade covers must comply with Section 118-713 of the Zoning Ordinance, except as amended below: a. A waiver of the exterior materials standard is authorized for the columns of the auto shade structures. 3. Landscaping. The landscaping for the site, as approved by the Landscape Review Board, must be installed within 90 days of approval of the final inspection of the auto shade structures. COMPREHENSIVE PLAN: This area is designated on the Comprehensive Land Use Plan as Commercial. This designation is intended to permit a variety of commercial uses including automobile-related services, retail trade, and business service establishments with outside storage, display, and sales. CURRENT ZONING: The property is currently zoned C-2 Commercial. This district is intended to provide for the development of retail and general business uses primarily to serve the community and region. Uses include a wide variety of business activities and may involve limited outside storage, service, or display. This district should not be located near low and medium density residential development and should be used as a buffer between retail and industrial uses. The C-2 commercial district is also appropriate along business corridors as indicated on the comprehensive plan. SURROUNDING ZONING ( LAND USE: North: C-2 Commercial Commercial South: C-2 Commercial Commercial East: C-1 Commercial and PD Planned Development I Retail West: PD Planned Development I Commercial Packet Pg. 121 C.3 lqmk 1W Rib "ArRok., NORTH KIC;HLAND HILLS PLAT STATUS: The property is currently platted as Lot 4A, Block 1, Hudiburg Addition. PLANNING & ZONING COMMISSION: The Planning & Zoning Commission is scheduled to hold a public hearing and consider this item at their February 18, 2016 meeting. Staff will brief City Council on the Commission's recommendation at the City Council meeting. Recommendation: To approve Ordinance 3396, subject to the stated conditions. Packet Pg. 122 C.3.a CO Ln cm CL m N 0 co co J e a� co Ln CD cm CL o co NE Loop 820 Packet Pg. 123 / rrj API�" .,� r � '� /// !�!• r l ,�\r ", I�o / II fill Ln CMCD �f CL CO i y �1 i co CL if' Como/r a�rm�ir/y Ln / CD CL CO SIGH / o 4r. � ° � uJIV ICI ui u �y �✓.r � �,Pdi//irii / �% '' ri' �//r�" (,���I�rA�a' ��� �J���� 14m�r Packet Pg. 124 C.3.c `CHL,g d NOTICE OF PUBLIC HEARINGS CITY OF NORTH RICHLAND HILLS .. :: PLANNING AND ZONING COMMISSION TExPS AND CITY COUNCIL Case Number: SUP 2015-08 Applicant: USA Shade & Fabric Structures Ln Location: 7769 Boulevard 26 cm You are receiving this notice because you are a property owner of record within 200 co feet of the property shown on the attached map. co Purpose of Public Hearing: A Public Hearing is being held to consider of a request from USA Shade & Fabric Structures for a variance to the masonry requirement for proposed shade structures at 7769 Boulevard 26. Public Hearing Schedule: Public Hearing Dates: PLANNING AND ZONING COMMISSION 7:00 PM THURSDAY, FEBRUARY 18, 2016 co CITY COUNCIL Ln 7:00 PM MONDAY, FEBRUARY 22, 2016 cm Both Meeting Locations: CITY COUNCIL CHAMBERS co 7301 N. E. LOOP 820 NORTH RICHLAND HILLS, TEXAS If you have any questions or wish to submit a petition or letter concerning the above request, please contact: Planning Department - City of North Richland Hills 7301 Northeast Loop 820 North Richland Hills, Texas 76180 Phone (817) 427-6300 Fax (817) 427-6303 Packet Pg. 125 C.3.d AUTONATION FORT WORTH TWOHUGGS LLC H&H PEARSON-HUGGINS LP MOTORS PO BOX 92519 PO BOX 982002 200 SW 1 ST FL 14 AVE SOUTHLAKE TX 76092-0519 NRH TX 76182-8002 FORT LAUDERDALE FL 33301-2074 BRAKE ALICE M BRACKETT JOHNNY BOCKMAN ROBERT HENRY 1925 FAIRFAX AVE BRACKETT PEARLENE 4804 NANCY LN LAS CRUCES NM 88001-1512 4800 NANCY LN NRH TX 76180 FORT WORTH TX 76180-6888 GARVIN BILLY RAY MARTINEZ CHARLIE S JR BASSAR MALISSA L 5908 QUAILS PATH 1501 FAIRMOUNT AVE 4816 NANCY LN COLLEYVILLE TX 76034-7514 FORT WORTH TX 76104-4235 NRH TX 76180-6888 Ln CL C0 DAVIDSON KEITH GULIK ERIC JASON WILKERSON DWAYNE P 4820 NANCY LN 4824 NANCY LN 4901 NANCY LN FORT WORTH TX 76180-6888 NRH TX 76180-6888 FORT WORTH TX 76180-6855 POSTMA RICHARD WELCH JOHN L ALGOM LLC POSTMA LINDA WELCH DEBRA L 4360 WESTERN CENTER BLVD 1F >` 4905 NANCY LN 4909 NANCY LN FORT WORTH TX 76137 FORT WORTH TX 76180-6855 FORT WORTH TX 76180-6855 I- LILLY MARGUERITE B DE SOTO HARVEY FRANCIS WRIGHT CHARLES 4917 NANCY LN 7505 BRIDGES AVE 4900 NANCY LN NRH TX 76180-6855 FORT WORTH TX 76118-5913 NRH TX 76180-6854 2 Co BOWERS AARON M PULLIAM LEEMON L FURROW JASON Ln BOWERS BRITNEY 7101 MARILYN LN FURROW KELLIE 6248 FRANK CHRISTIAN RD FORT WORTH TX 76180-7961 PO BOX 486 CL AZLE TX 76020-7303 KRUM TX 76249-0486 C0 GARCIA HECTOR CORTEZ ELIZABETH PRETIUM MTG ACQUISITION TRL GARCIA LAURA 7704 CLENIS LN 15480 LAGUNA CANYON RD 100 4916 NANCY LN NRH TX 76180-6854 NRH TX 76180-6868 IRVINE CA 92618 GREEN JAMES EST II PHOMSOUVANH PHONEVILAY WORTHEY SHAWN M GREEN AMY 7716 CLENIS LN WORTHEY DAVID W 7712 CLENIS LN NRH TX 76180-6868 10040 JACKSON RD NRH TX 76180-6868 KRUM TX 76249-6639 ACE INTERESTS CORP SALINAS AGUSTIN MAPLEWOOD BAPTIST CHURCH 8004 MAIN ST SALINAS M DE JESUS 7708 MAPLEWOOD AVE NRH TX 76182-4005 5000 NANCY LN FORT WORTH TX 76180-6858 NRH TX 76180-6889 Packet Pg. 126 C.3.d PUBLIC STORAGE INC MEGMA LLC 7901 BLVD 26 LLC Attention:ATTN DEPT PT-TX 27222 22 WOODLAND CT NORTH RICHLAND HILLS CITY OF PO BOX 25025 MANSFIELD TX 76063-6033 22 LELANDS PATH GLENDALE CA 91221-5025 EDGARTOWN MA 02539 RICHLAND-DAVIS LLC 1401 BROAD ST CLIFTON NJ 07013-4236 Ln CL C0 0 I- t 0 4- 0 2 Co Ln CL C0 Packet Pg. 127 C.3.e ORDINANCE NO. 3396 SUP 2015-08 AN ORDINANCE OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, AMENDING THE COMPREHENSIVE PLAN AND THE COMPREHENSIVE ZONING ORDINANCE BY APPROVING A SPECIAL USE PERMIT TO AUTHORIZE A WAIVER TO THE MASONRY REQUIREMENT FOR AUTO SHADE STRUCTURES TO BE INSTALLED ON A 16.064 ACRE PROPERTY LOCATED AT 7769 BOULEVARD 26; ESTABLISHING A PENALTY; PROVIDING FOR PUBLICATION AND PROVIDING AN EFFECTIVE DATE. WHEREAS, notice of a hearing before the Planning and Zoning Commission was sent co to real property owners within 200 feet of the property herein described at Ln least 10 days before such hearing; and, cm a. WHEREAS, notice of a public hearing before the City Council was published in a co newspaper of general circulation in the City at least 15 days before such hearing- and, co WHEREAS, public hearings to consider the request herein described were held before both the Planning and Zoning Commission and the City Council, and the Planning and Zoning Commission has heretofore made a recommendation concerning the request; and, WHEREAS, the City Council is of the opinion that granting the request herein furthers the purpose of zoning as set forth in the Comprehensive Zoning co Ordinance and is in the best interest of the citizens of the City of North Ln Richland Hills; cm NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY co OF NORTH RICHLAND HILLS, TEXAS: Section 1: THAT the Comprehensive Zoning Ordinance is hereby amended by approving a special use permit to authorize a waiver of the masonry requirement for auto shade structures to be installed on Hudiburg Addition, Block 1, Lot 4A, North Richland Hills, Tarrant County, Texas, commonly referred to as 7769 Boulevard 26. Section 2: The City Council finds that the information submitted by the applicant pursuant to the requirements of the Zoning Ordinance is sufficient to approve the Specific Use Permit in accordance with the requirements hereof, subject to the following conditions: 1. Site Plan. The auto shade structures must be installed in accordance with the site plan attached hereto as Exhibit A. Ordinance 3396 Page 1 of 3 Packet Pg. 128 C.3.e 2. Compliance with Development Standards. Construction of the auto shade covers must comply with Section 117-713 of the Zoning Ordinance, except as amended below: a. A waiver of the exterior materials standard is authorized for the columns of the auto shade structures. 3. Landscaping. The landscaping for the site, as approved by the Landscaping Review Board, must be installed within 90 days of approval of the final inspection of the auto shade structures. Section 3: That the official map of the City of North Richland Hills is amended and co the Planning Manager is directed to revise the official zoning map to Ln reflect the approved special use permit, as set forth above. cm a. Section 4: The use of the property described above shall be subject to all applicable co regulations contained in the Building and Land Use Regulations and all other applicable and pertinent ordinances of the City of North Richland co Hills. Section 5: Any person, firm or corporation violating any provision of the Comprehensive Zoning Ordinance and the zoning map of the City of North Richland Hills as amended hereby shall be deemed guilty of a misdemeanor and upon final conviction thereof fined in an amount not to as exceed Two Thousand Dollars ($2,000.00). Each day any such violation shall be allowed to continue shall constitute a separate violation and co punishable hereunder. Ln cm Section 6: The City Secretary is hereby authorized and directed to cause the publication of the descriptive caption and penalty clause of this ordinance co two times. Section 7: This ordinance shall be in full force and effect immediately after passage. AND IT IS SO ORDAINED. PASSED AND APPROVED on the day of 2016. CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor Ordinance 3396 Page 2 of 3 Packet Pg. 129 C.3.e ATTEST: Alicia Richardson, City Secretary Approved as to form and legality: Attorney Ln APPROVED AS TO CONTENT: cm co co Department Head S co Ln cm co Ordinance 3396 Page 3 of 3 Packet Pg. 130 i � a z w LU ¢ z z z J w LL w I Z LL LU J CL 9 ti O = pp V Cn ..0-.V0 �E ..0-.OZ u w L) o i I �� z U I z Z z c o Lli W cn IL J I � O z Jw z U a2-- = w LL c� l Gz Z-w ¢ Z V C7 LL. = U w 1 U Cl) Z f � z - M _ z i I w�l.�l fif \ \� \ u_ LL cn C.4 "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Consider Resolution No. 2016-011, Public Hearing and consideration of the 42nd Year Community Development Block Grant Program. Presenter: Caroline Waggoner, City Engineer Summary: The United States Department of Housing and Urban Development (HUD) requires that a public hearing be held so that the City can receive comments and input from citizens regarding the 42nd Year Community Development Block Grant program project. Following the public hearing it is necessary for City Council to take action regarding the project to include in the 42nd Year Community Development Block Grant (CDBG) program. Tarrant County and the City of North Richland Hills have entered into a joint agreement whereby Tarrant County is given the authority to administer the program. General Description: In 1996, HUD designated the City of North Richland Hills as a metropolitan city to receive direct entitlement of Community Development Block Grant (CDBG) funds. On June 24, 1996 the City Council accepted the direct entitlement designation and entered into an agreement with Tarrant County for the administration of the City's CDBG program. As a result of the direct entitlement designation, the City is awarded an annual grant on a formula basis to help provide a wide range of community development activities. CDBG funds are used in the revitalization of neighborhoods, economic development, and to provide public facilities and services for low to moderate income persons. Eligible CDBG projects include construction or rehabilitation of homes, basic infrastructure development such as water/sewer facilities, streets and other programs that target designated areas or persons. The programs/projects selected by the City must fall in the geographic target area identified by the most recent census (2010 Census) as being in an area with low to moderate income persons. Each program year, the City must prepare and submit a CDBG program outlining the use of these funds in accordance with HUD guidelines. Staff was informed that the City of North Richland Hills' was awarded a project allocation of $394,508.50 for the 42nd Year CDBG program. This money will be used for the replacement of 1,850 linear feet of 18" sewer pipe located along Harmonson Road, between Dawn Drive and Lochridge Court. This portion of the sewer line is being proposed as the City's 42nd Year CDBG Packet Pg. 132 C.4 lqmk IM Rib "ArRok., NORTH KIC;HLAND HILLS Project because the line is experiencing significant inflow and infiltration issues and is badly deteriorated. Because of the size of the sanitary sewer main, City utility funds will be needed to augment the available CDBG grant funds. HUD requires that a public hearing be held so that the City can receive comments and input from citizens regarding the 42nd Year CDBG program project. Recommendation: To approve Resolution No. 2016-011. Packet Pg. 133 C.4.a RESOLUTION NO. 2016-011 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS APPROVING THE PROJECT FOR THE 42ND 0. ANNUAL COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of North Richland Hills will receive Community Development Block Grant (CDBG) funds for the 42nd CDBG program year and WHEREAS, the City of North Richland Hills is desirous to receive CDBG funds to improve the quality of life in the identified target area of the City. a NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: 0 c� SECTION 1. THAT City's requested CDBG program project for the 42nd funding year is as follows: cm Project $394,508.50 Replace 1,850 linear feet of sewer line on Harmonson Road, between Dawn Drive and Lochridge Court. PASSED AND APPROVED this the 22nd day of February, 2016. E CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor ATTEST: 0 c� Alicia Richardson, City Secretary co APPROVED AS TO FORM AND LEGALITY: cm City Attorney 0 APPROVED AS TO CONTENT: U) Mike Curtis, Managing Director Packet Pg. 134 C.4.a 0 L- a C) a 2 CL 0 Co CD to CD CM C) r_ 0 0 U) Packet Pg. 135 E.1 "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Consider Resolution No. 2016-008, eminent domain for a drainage easement, located west of Steeple Ridge, and authorize the City Manager to execute a City / Developer Agreement with Safeway Consulting to recover the costs associated with all eminent domain proceedings for the drainage easement. Presenter: Caroline Waggoner, City Engineer Summary: Approve a City / Developer Agreement with Safeway Consulting and accompanying Resolution authorizing the City to acquire a Drainage Easement for public use. General Description: When the Steeple Ridge subdivision was developed in the early 1990's, the property was designed to accept the fully developed runoff from the undeveloped property to the west. This undeveloped property includes most of the land to the east of Shady Grove and Clay Hibbons, as well as some of the property west of Clay Hibbons in the City of Keller. The subdivision was designed to accept this runoff at the far northwest corner of Steeple Ridge. In the years since Steeple Ridge was built, the "undeveloped" property has remained largely unchanged. Several of the properties have since platted as one- or two-lot residential tracts. In 2015 a developer acquired a number of properties in this area and began planning for a multi-lot residential subdivision. During the purchase of the properties it came to light that there is a small tract of land that has been inadvertently left out of conveyance transactions for decades, but which has been assumed to have been part of an adjacent tract. The developer's title company has not been successful in determining current ownership of this property, but an easement is needed across the property in order to install the ultimate storm drainage improvements. The acquisition of this easement not only provides a pathway for the developed runoff, but will greatly improve the drainage conditions in Steeple Ridge in the current pre-developed scenario. Recommendation: Approve Resolution No. 2016-008 and authorize the City Manager to execute a Ctiy Developer Agreement for the acquisition of a drainage easement. Packet Pg. 136 RESOLUTION NO. 2016-008 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, DECLARING THE NECESSITY TO ACQUIRE TITLE TO LAND DESCRIBED HEREIN, AND AUTHORIZING THE ACQUISITION OF PROPERTY 0 RIGHTS LOCATED IN THE THOMAS PECK SURVEY NECESSARY FOR A DRAINAGE EASEMENT; AND , AUTHORIZING THE CITY ATTORNEY OR DESIGNEE TO INSTITUTE CONDEMNATION PROCEEDINGS TO ACQUIRE THE PROPERTY IF PURCHASE NEGOTIATIONS ARE NOT SUCCESSFUL. 0 WHEREAS, the City Council of the City of North Richland Hills, Texas ("City Council'), has determined that the an easement under, on and through the property described in Exhibit A hereto, is appropriate for use by the City of North Richland Hills for a public drainage project (the "Drainage Project") including right of way therefor and associated public uses and that there exists a public necessity to acquire the property herein described, for the 0 Drainage Project; and WHEREAS, the City Council desires to acquire the property described in Exhibits A and B hereto for the aforementioned public uses because such property is cm necessary for completion of the planned and approved Drainage Project in the City of North Richland Hills, Texas; and WHEREAS, the City Council desires that the attorneys for the City of North Richland Hills, at the expense of the City of North Richland Hills take all necessary steps to acquire the needed property interests, including but not limited to the retention of appraisers, engineers and other consultants and experts, and that such attorneys, or designee, negotiate the purchase of the property interests and, if unsuccessful in purchasing the needed co to property interests, to institute condemnation proceedings to acquire the co property described in Exhibit A hereto; NOW THEREFORE: co BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, THAT: cm r_ Section 1: All of the above premises are hereby found to be true and correct legislative and factual findings of the City Council of the City of North Richland Hills, Texas, and they are hereby approved and incorporated into the body of this resolution as if copied in their entirety. Section 2: The City Council hereby finds and determines that a public purpose and necessity exists for the City of North Richland Hills to acquire the property described in Exhibits A and B hereto for a public use, to wit a public drainage improvement project along with necessary construction Packet Pg. 137 easement, all as part of the Drainage Project, and to acquire the necessary property rights in such described property from the owner of such property, Owner Unknown, and the lienholder(s). Section 3: The North Richland Hills City Attorney, or designee, is authorized and directed to negotiate for and to acquire the required property rights for the City of 0 North Richland Hills, and to acquire said rights in compliance with law. Moreover, the North Richland Hills City Attorney, or designee, is , specifically authorized and directed to do each and every act necessary to acquire the needed property rights including, but not limited to, the authority to negotiate, give notices, make written offers to purchase, prepare contracts, to retain and designate a qualified appraiser of the property interests to be acquired, as well as any other experts or consultants that deemed necessary for the acquisition process and, if necessary, to institute proceedings in eminent domain. E Section 4: The North Richland Hills City Attorney is authorized and directed to do 0 each and every act and deed hereinabove specified or authorized by reference, subject to the availability of funds appropriated by the City Council for such purpose. Further, the North Richland Hills City Attorney cm or designee is specifically authorized to establish the just compensation for the acquisition of the described property. Additionally, if the North Richland Hills City Attorney or designee determines that an agreement as to damages or compensation cannot be reached, then the North Richland Hills City Attorney or designee is hereby authorized and directed to file or cause to be filed, against the owner(s) and interested parties of the needed property interests, proceedings in eminent domain to acquire the above-stated interests in the property co described in Exhibits A and B hereto. to co PASSED AND APPROVED this the 22nd day of February 2016. co cm CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor ATTEST: Alicia Richardson, City Secretary Packet Pg. 138 APPROVED AS TO FORM AND LEGALITY: George A. Staples, City Attorney 0 U) m APPROVED AS TO CONTENT: S Mike Curtis, Managing Director 0 S m 0 0 cm 6 r_ 0 0 a� 0 co to co co cm c� r_ 0 0 Packet Pg. 139 00 . ........... JI 16/1 IM, CO 12, mr, "ov, g g, V i, A F (D CL (n vot —1 0 0 (D 0 0 CL CL qA,� CL (D C: C) CITY OF NORTH RICHLAND HILLS E 0 U) M CITY-DEVELOPER AGREEMENT E STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS COUNTY OF TARRANT § 0 E M THAT Safeway Consulting and Contracting, LLC, a limited liability company, (herein E "Developer")with offices at 1521 Wagonwheel Trail, Keller, TX 76248 acting herein by and through its owner, Ashraf Shehata and the City of North Richland Hills, Tarrant County, Texas 0 (hereinafter"City"), enter into the following contract: 0 In consideration of the mutual covenants herein contained and for the purpose of providing drainage improvements connecting Developer's property to the City's storm drain system the Developer and the City hereto agree: cm 6 1. City agrees to acquire a public drainage easement through the property of unknown r_ ownership as described in Exhibits A and B hereto. 0 2. Developer agrees to reimburse the City all its cost of acquiring such easement, including the cost of City's attorney fees, court costs and appraisal fees incurred in acquiring such easements by use of City's power of eminent domain. r_ 0 3. Developer further agrees to construct a public storm drain system to City's specifications �? through the drainage easement, continuing north to connect to the existing storm drain co co system stubbed out at the northwest corner of the Steeple Ridge subdivision. 4. Upon completion of construction of such storm drain system, City agrees to accept responsibility for maintaining such storm drain as public storm drain. 0 M This Agreement was approved in its entirety at the meeting of the City Council of the City of North Richland Hills on the day of 2016, by a majority vote of the Council. Safeway Consulting and Contracting, LLC By: Ashraf Shehata, Owner t� Packet Pg. 141 0 U) M CITY OF NORTH RICHLAND HILLS a By: Mark Hindman, City Manager 0 E cc ATTEST: Alicia Richardson, City Secretary 0 APPROVED AS TO FORM AND LEGALITY: cm 6 r_ George A. Staples, Attorney 2 0 APPROVED AS TO CONTENT: U) r_ 0 Department Head �? co to co 0 U) M E t� Packet Pg. 142 1u9uIw9 '900-9I,0Z '0N uoijinjoseN aap ueo a 999l,) 9 pue V spq!V3 1u9 a s a6au'aa :juqwwejjv M r r W a1 a 0 a. 51 I I CAROLINE CT BARRETT-ANDREWS ADDITION 15.01' D210232526 S89°32'39"E P.R.T.C.T. w REMAINDER OF ° 15 FOOT WIDE ,Nn LOT 1 TRACT 1, DRAINAGE EASEMENT of 50 VOL.2399,PG.454 ACQUISITION - C.E.LE MASTER 779 SQ.FT.+/- CO M .. N c I BLOCK 2 y Z �I � 15.00' 0OB� S89°38'52"'W I' SAFEWAY CONSULTING& CONTRACTING LLC INST.NO.D215213528 I G�t,PQ,�� D.R.T.C.T. (TRACT TWO) Scale 1" = 50' 49 BLOCK 1 THOO(u>utlAS PECK LOT --------------- v 4.1°1715 uV----------------N O O Z Y2"IRF POC — — — — ERF°°;l 19 tea° °ev I BLOCK 2 O EDWARD K. KHAL I I �\ °`%e °°°`5951°°° EXHIBIT "B�� I �15A °°ESo4 15 FOOT DRAINAGE EASEMENT suR� SITUATED IN THE THOMAS PECK, SURVEY c�-A 0 Q 18 S i gned: ABSTRACT NO.1210 CITY OF NORTH RICHLAND HILLS Date: 1- 2a — / 6 TARRANT COUNTY, TEXAS DRAWN BY: A.N.A. CONSULTANTS, L.L.C. DATE: 01-25-16 DGN NO : 150250 DE 1 5000 Thompson Terrace CONSULTANTS,L.L.C. Colleyville,Texas 76034 APPROVED BY: EK I g I�gip �� Office: (817)335-9900 "''� Fax: (817)335-9955 REVISED: 000i�—o F.R.NO. 10090800 SHT.N0.: 1 OF 1 1u u' `900° LO '0 uo'I foss a p' uoo : 999L) 9 pue V spqW3 WOUJOSB3 Oftuleja :ju I II r r w DOE#_0000;Parcel# DE-I SHADY GROVE a SHADY GROVE RD. DRAINAGE EASEMENT ACQUISITION Y NORTH RICHLAND HILLS, TEXAS. DE-1 THOMAS PECK SURVEY,A-1210 a EXHIBIT "A" REAL PROPERTY DESCRIPTION OF A 15 FOOT DRAINAGE EASEMENT BEING A PARCEL OF LAND SITUATED IN THOMAS PECK SURVEY, ABSTRACT NUMBER 1210, CITY OF NORTH RICHLAND HILLS, TARRANT COUNTY, TEXAS, BEING A PORTION OF THAT RAMAINDER TRACT OF LAND DESCRIBED AS TRACT 1, BY DEED TO C.E. LE MASTER, AS RECORDED IN VOLUME 2399, PAGE 454, DEED RECORDS, TARRANT COUNTY, TEXAS, AND BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: COMMENCING AT A 1/2 INCH IRON ROD FOUND FOR THE SOUTHWEST CORNER OF LOT 49, BLOCK 2, STEEPLE RIDGE, AN ADDITION TO THE CITY OF NORTH RICHLAND HILLS, AS RECORDED IN CABINET A, SLIDE 1368, PLAT RECORDS, TARRANT COUNTY, TEXAS, AND THE NORTHWEST CORNER OF LOT 18, BLOCK 2, STEEPLE RIDGE ADDITION AS RECORDED IN CABINET A, SLIDE 591, OF SAID PLAT RECORDS, IN THE EAST LINE OF THAT TRACT OF LAND DESCRIBED IN DEED TO SAFEWAY CONSULTING & CONTRACTING LLC, AS RECORDED IN INSTRUMENT NUMBER D215213528, DEED RECORDS, TARRANT COUNTY, TEXAS; THENCE NORTH 00 DEGREES 20 MINUTES 49 SECONDS WEST, 169.74 FEET WITH THE WEST LINE OF SAID BLOCK 2, TO THE NORTHEAST CORNER OF SAID SAFEWAY CONSULTING & CONTRACTING LLC, TRACT AND THE SOUTHEAST CORNER OF SAID REMAINDER TRACT AND THE POINT OF BEGINNING; THENCE SOUTH 89 DEGREES 38 MINUTES 52 SECONDS WEST, 15.00 FEET WITH THE NORTH LINE OF SAID SAFEWAY CONSULTING & CONTRACTING TRACT; THENCE NORTH 01 DEGREES 03 MINUTES 08 SECONDS WEST, 52.01 FEET TO THE SOUTH MOST NORTHERLY LINE OF LOT 1, BLOCK 1, BARRETT-ANDREWS ADDITION AS RECORDED IN INSTRUMENT NUMBER D210232526, OF SAID PLAT RECORDS; THENCE SOUTH 89 DEGREES 32 MINUTES 39 SECONDS EAST, 15.01 FEET TO THE WEST LINE OF SAID BLOCK 2; THENCE SOUTH 01 DEGREES 03 MINUTES 08 SECONDS EAST, 51.80 FEET TO THE POINT OF BEGINNING AND CONTAINING 779 SQUARE FEET OR 0.018 OF AN ACRE OF LAND MORE OR LESS. Note: Surveyed on the ground September 2015. Note: Bearings are relative to True North obtained from Global Positioning Satellite System (GPS) Observations, North American Datum 1983 (NAD ' 83) , Texas State Plane Coordinate System, North Central Zone. �P= c r E, 5 F ........................ EDWARD K.KHALIL ... 5951 *Faess o?^04 9ti0SUR�Ey A.N.A. Consultants,L.L.C. Page I of 1 5000 Thompson Terrace Colleyville,TX 76034 REVISION: 10-27-14 F.1 lqmk 1W Rib "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Receive Fiscal Year 2015 Audited Financial Report. Presenter: Kent Austin, Finance Director Summary: The results of the fiscal year (FY) 2015 Comprehensive Annual Financial Report (CAFR) for the City will be presented by Director of Finance Kent Austin. A representative of the independent audit firm of BKD, LLP will present the audit opinion. General Description: A copy of the Comprehensive Annual Financial Report (CAFR) is attached. The auditor's opinion (see Independent Auditor's Report, page 1 of the CAFR) is an unqualified opinion or "clean" opinion again this year. This means that they have found the Financial Statements of the City of North Richland Hills to fairly represent the city's financial position. The CAFR reflects that operating funds ended the year with positive cash balances. Overall, the City of North Richland Hills' results of operations during the 2015 fiscal year, as well as the financial position at year-end, reflect a sound fiscal condition. This is in fulfillment of Council Goal 4: Financial Stability. An electronic copy of the CAFR will be made available on the City's website. Individuals may also request a copy on a compact disc from the Finance Department and hard copies will be available at the North Richland Hills City Hall and Library. Recommendation: Receive 2015 Fiscal Year Audited Financial Report as presented. Packet Pg. 145 � ib+I III F.1.a i r i Ih I 1 / t Ln CD CM f u f 4- 2 m U) 2 CL Co Co Ln 1 l l i 1 i i �r �ar �t WWOWW 4— NOW � i 1 Packet Pg. 146 About The Cover Our new facility at 7301 Iron Horse Boulevard is now open. It's at the corner of Iron Horse Boulevard and Dick Fisher Drive North, one block south of Mid Cities Boulevard. Accommodating up to 145 animals, the new 10,300-square-foot center replaces our old, over crowded facility at 7200 B Dick Fisher Dr. S. The new Animal Adoption & Rescue Center was designed by Quorum Architects with a focus on adopting pets, providing a healthier shelter environment, and creating an efficient working environment for shelter employees. Modern Contractors constructed the new facility. eotwA l9ejigned 6* 33ado acid Jejeawh DepaK nwW ed*a[ N"&J>Lwkkmd .fib, J exao eotwm J PaoW Jwm tap: Jfdtea Cawde3cf a[ ` � d ................ ✓VJM an4ncd Sheetem eoude,6cf of eanwutnicatimm DepaWmvd J appiej J ictwce Cawd,6tf of ggL!j!AeAtW...........fY � d�„ ; T � F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30,2015 0 City Officials a� Oscar Trevino Mayor David Whitson Place 5 Mayor Pro Tem Ln cm Tito Rodriguez Rita Wright Oujesky Place 1 Place 2 Tom Lombard Dr. Tim Barth Place 3 Place 4 2 0 Scott Turnage Tim Welch Place 6 Place 7 U) 2 Mark Hindman CL City Manager Karen Bostic Assistant City Manager Paulette Hartman Ln Assistant City Manager cm Jimmy Perdue Director of Public Safety x Mike Curtis T Managing Director for Development Services Kent Austin Director of Finance 2 4- Prepared by: Finance Department C) Packet Pg. 148 F.1.a NC-ORTH IUCHLAND H I L L S City of Choice 0 ACKNOWLEDGEMENTS S The Comprehensive Annual Financial Report was prepared by the Department of Finance Office of Accounting: Karen Bostic Ln Assistant City Manager cm Kent Austin, CPFO Director Financial Reporting Staff: U- 4- 0 Laury Fiorello, CGFM, Assistant Director Phyllis O'Neal, Finance Assistant Amanda Brown, Accountant II Huibi Wang, Accountant I Tina Marsden, Accounting Technician Stephanie Hasse, Accounting Technician Lisandra Leal, Accounting Technician co Special appreciation is given to: to Ln cm Budget and Research Department U) Mark Mills, Director Jennipher Castellanos, Senior Budget Analyst Christopher Smith, Budget Analyst Human Resources Department Patrick Hillis, Director Cameron Rowland, Assistant Director 2 James Edwards, Human Resources Analyst Ellen Cooper, Benefits Coordinator Jenny Bransford, Payroll Specialist Nancy Holcomb, Generalist Employment And to all the departments and personnel throughout the City whose extra effort to E contribute timely financial data for their departments made this report possible. Packet Pg. 149 F.1.a City of North Richland Hills, Texas Comprehensive Annual Financial Report For Fiscal Year Ended September 30, 2015 Page(s) a� Title Page I Table of Contents III -V INTRODUCTORY SECTION Letter of Transmittal IX-XII I Ln GFOA Certificate of Achievement XIV cm Organization Chart XV List of Principal Officials XVI FINANCIAL SECTION 4- Independent Auditor's Report 1 -3 Management Discussion and Analysis 4 - 14 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements: Statement of Net Position 17 Statement of Activities 19 Fund Financial Statements: Ln Balance Sheet- Governmental Funds 20-23 cm Reconciliation of the Balance Sheet of Governmental Funds U) to the Statement of Net Position 25 Statement of Revenues, Expenditures, and Changes in Fund Balance - 12 Governmental Funds 26 -27 T Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of Governmental Funds to the Statement of Activities 29 Statement of Net Position - Proprietary Funds 30- 31 2 Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds 32 Statement of Cash Flows- Proprietary Funds 33 Statement of Net Position - Fiduciary Funds 34 Cj Statement of Revenues, Expenses, and Changes in Net Position - Fiduciary Funds 35 Notes to Basic Financial Statements 37 -71 Packet Pg. 150 F.1.a City of North Richland Hills, Texas Table of Contents Page(s) REQUIRED SUPPPLEMENTARY INFORMATION: a� Texas Municipal Retirement System Plan - Schedule of Changes in Net Pension Liability and Related Ratios 75 Texas Municipal Retirement System Plan - Schedule of Contributions 76 North Richland Hills Other Post Employment Benefits Schedule of Funding Progress 77 Schedule of Revenues, Expenditures, and Changes in Fund Balance Ln - Budget(Non-GAAP Basis) and Actual cm General Fund 78 Notes to Required Supplementary Information 79 -80 OTHER SUPPLEMENTARY INFORMATION: Non-major Governmental Funds: a® 4- Combining Balance Sheet 82 -83 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance 84 -85 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget(Non-GAAP Basis) and Actual General Debt Service Fund 86 Parks and Recreation Development Corporation Fund 87 Gas Development Fund 88 Promotional Fund 89 Donations Fund 90 Special Investigations Fund 91 Drainage Utility Fund 92 Ln Crime Control District Fund 93 cm Traffic Safety Fund 94 U) Internal Service Funds: Combining Statement of Net Position 97 12 Combining Statement of Revenues, Expenses, and Changes T in Net Position 98 Combining Statement of Cash Flows 99 Notes to Other Supplementary Information 100 - 106 Proprietary Funds Other Supplementary Information Schedule of Revenues, Expenses, and Changes in Net Position - Budget(Non-GAAP Basis) and Actual Utility Fund 108- 109 Aquatic Park 110 Golf 111 Facilities and Construction 112 Fleet Services 113 Self Insurance Fund 114 Information Technology 115 IV Packet Pg. 151 F.1.a City of North Richland Hills, Texas Table of Contents Page(s) 0 STATISTICAL SECTION a� Government-Wide Information: Net Position by Component Table 1 118- 119 Changes in Net Position Table 2 120 - 123 Fund Information: Ln Fund Balance -Governmental Funds Table 3 125 cm Changes in Fund Balance -Governmental Funds Table 4 126 - 127 Appraised and Taxable Value of Property Table 5 128- 129 Property Tax Rates- Direct and Overlapping Governments Table 6 130 - 13. Principal Taxpayers Table 7 133 Property Tax Levies and Collections Table 8 134 - 135 Ratios of Outstanding Debt by Type Table 9 136 - 137 Computation of Direct and Overlapping Debt Table 10 138 Computation of Legal Debt Margin Table 11 139 Pledged Revenue Coverage Table 12 141 Demographic Statistics Table 13 142 - 143 Principal Employers Table 14 145 CL Full-time Equivalent Municipal Employees by Function/Program Table 15 146- 147 Operating Indicators by Function/Program Table 16 148- 149 Capital Asset Statistics by Function/Program Table 17 150 - 151 Ln cm C) U) M X 4- 0 C) v Packet Pg. 152 0 a� S Ln CD 2A 4- 0 r_ 0 m r_ 4) U) 2 CL to Ln CD C) U) m x 4- 0 C) This page intentionally left blank. vi Packet Pg. 153 F.1.a 0 Introductory Section S Ln 4- 0 r_ U) 2 CL Ln CD CM U) m x 4- 0 Vil Packet Pg. 154 0 a� S Ln CD 2A 4- 0 r_ 0 m r_ 4) U) 2 CL to Ln CD C) U) m x 4- 0 C) This page intentionally left blank. viii Packet Pg. 155 F.1.a "RH T i�r C I T Y OF C H O I C E Department of Finance February 12, 2016 0 To the Honorable Mayor, City Council Members, City Manager, and Residents of the City of North Richland Hills, Texas: E We hereby issue the comprehensive annual financial report of the City of North Richland Hills,Texas (the"City") LL for the fiscal year ended September 30. 2015. This report consists of City management's representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in Ln the report. To provide a reasonable basis for making these representations, management of the City has cm established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with generally accepted accounting principles ("GAAP"). Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from iz material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City's financial statements have been audited by BKD, LLP, independent auditors. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended September 30, 2015, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements;assessing the accounting a. principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for CID rendering unmodified opinions that the City's financial statements for the fiscal year ended September 30,2015, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. Ln C) The independent audit of the financial statements of the City was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit cm engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special X emphasis on internal controls and legal requirements involving the administration of federal awards. These U) reports are available in the City's separately issued Single Audit Report. GAAP require that management provide a narrative introduction,overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis ("MD&A"). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's MD&A can be found 2 immediately following the report of the independent auditors. 4- 0 C) P.O. Box 820609 . North Richland Hills, Texas . 76182-0609 7301 Northeast Loop 820 . Finance . 817-427-6166 . Fax 817-427-6151 ix Packet Pg. 156 F.1.a Profile of North Richland Hills The City, incorporated in 1953, is a growing community located in the heart of the Dallas/Fort Worth Metroplex. The City's estimated population is 66,300 for 2015. The City is also home to over 1,200 commercial and industrial businesses. The third largest city in Tarrant County, North Richland Hills is only 10 minutes from downtown Fort Worth and 25 minutes from downtown Dallas. Interstate Loop 820 and Texas 121/183(Airport Freeway)traverse the City, providing freeway access to five additional interstates and numerous US and state highways. The City is also conveniently located 10 minutes from Dallas/Fort Worth International Airport and 15 minutes from Alliance Airport. D/FW International Airport has over 2,000 flights daily with non-stop service to all major North American cities and many overseas destinations. The Alliance development facilitates the transport of merchandise through both the airport and the Burlington Northern/Santa Fe Intermodal Facility. North Richland Hills operates under a charter adopted in 1964 which provides for a Council-Manager form of government. The Mayor and seven Council members are elected at large. The City Council is responsible for all Ln matters of policy as well as for levying taxes, securing revenues, authorizing expenditures of City funds, and cm incurring City debts. The City Manager is directly responsible to the City Council. An organizational chart follows to show the various levels of responsibility. The City provides a full range of services. These services include police and fire protection; municipal court operations;the construction and maintenance of streets and infrastructure;parks,library,and recreational activities 2 including tennis center operations; neighborhood services activities; planning and inspections;and the operations of a water and wastewater system,a golf course,and a public waterpark. A private contractor,through a franchise agreement, provides solid waste collection and disposal services for the City. The annual budget serves as the foundation for the City's financial planning and control. The City maintains budgetary controls to ensure compliance with provisions in the annual budget adopted by the City Council. Annual operating budgets are adopted for the General Fund, certain Special Revenue Funds, Debt Service Funds, CL Enterprise Funds, and Internal Service Funds. Project-length financial plans are adopted for the Capital Project Funds. The level of budgetary control(that is,the level at which expenditures/expenses cannot legally exceed the appropriated amount) is established at the fund level. Detail control is accomplished by maintaining appropriations,encumbrances,and expended balances byline item within each operating department,within each operating fund. All annual appropriations lapse at the end of the fiscal year. Budgetary data for proprietary funds has not been presented since reporting on such budgets is not legally required. 0 Ln Prior to September 1,the City Manager submits to the City Council a proposed operating budget for the fiscal year cm commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted to obtain taxpayer comments. Prior to September 30,the budget is X legally enacted through passage of an ordinance. The appropriated budget is prepared by fund,department,and U) division. The City Manager is authorized to transfer budgeted amounts between departments within any fund. Encumbrance accounting is employed in governmental funds. Encumbrances(e.g., purchase orders, contracts) outstanding at year end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be re-appropriated and honored during the subsequent year. Transfers of appropriations between funds require the approval of the City Council. Budget-to-actual comparisons are provided in the report for each individual governmental fund for which an appropriated annual budget has been adopted. For the General Fund, comparisons begin on page 76 in the required supplementary information segment of the financial statements. The comparisons for other governmental funds with appropriated annual Cj budgets are presented in the other supplementary information of this report. x Packet Pg. 157 F.1.a Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates. Local economy—North Richland Hills("NRH")continues to grow as all major economic indicators are trending in the right direction. The City remains geographically positioned as the main link between bustling downtown Fort Worth and affluent Northeast Tarrant County. Adjacent to the high socioeconomic level cities of Colleyville, Keller and Southlake;the City of NRH remains not only the largest City in Northeast Tarrant County with 66,300 people, but it is poised to eclipse 85,000 people within the next two decades. According to the U.S. Census Bureau, the City has grown by 8% in total population, adding over 5,000 residents since 2010. This growth rate exceeds the county rate which includes the high growth areas of North Fort Worth, the City of Keller, City of Southlake and the City of Mansfield. Ln cm This past year also witnessed continued growth in taxable sales, taxable property values and new home starts. Compared to the previous fiscal year,taxable sales grew by 5.8%, a$50 million increase.This figure is expected to increase in FY 2016/17 as two recently opened grocery anchored commercial developments are surrounded by new retail and restaurant businesses. Taxable property value grew for the 5th straight year, this time over$143 million, eclipsing $4.2 billion in net taxable value. Finally, the City continues steady residential growth, adding A LL another 150 new single family homes with an average value over$350,000 while approving 200 more lots,keeping the funnel full with 500 shovel ready lots. Like last year, this residential growth was only exceeded by the City of Keller and City of Southlake in Northeast Tarrant County. The City maintains a diverse mix of 1,200 brick and mortar businesses with 14 primary employers representing 5,000 full time jobs within the healthcare,aerospace and supply chain sectors. Notably in 2015 the City welcomed two additional primary employers; Southwest ADI, a 50 employee supply chain headquarters occupying a vacant CL 125,000 square foot facility,and Digital Alchemy,a 75 employee full-service software company occupying 24,000 square feet of Class B office space. Both businesses relocated from nearby Fort Worth. In total, the City added CO roughly 50 net additional businesses over the recent year. North Richland Hills continues to experience quality commercial development and revitalization thanks to high standards and the ability to adapt and reinvent itself. New commercial growth continues around two grocery Ln anchored shopping centers, while commercial redevelopment progresses along Northeast Loop 820 as over 13 acres, representing 20%of the City's highway frontage, is now either for sale or undergoing redevelopment. cm U) M 2016 is projected to be anotherstrong yeargiven the aforementioned economic update,and the City is setting the stage for two separate commuter rail stops in the year 2018. The station sites are surrounded by 160 acres of unimproved property forecasted to develop over the next 10 years. Long-term financial planning— In 2012, NRH voters authorized the construction of a new municipal facilities building and location.The election authorized$40 million in general obligation debt for the project. The new facility will be the center of a new economic environment in the oldest part of the city. Located in a former retail mall site, 2 the plans provide for mixed use where commercial and multiple family housing stimulate the revitalization of the area. Projected completion of the new facility is estimated to be January 2016. 0 In February 2003,the voters authorized the development of 22 street projects(arterial,collector,and residential), two drainage projects,and four municipal facilities projects with the passage of four propositions in the 2003 Bond Election. The authorized election package totaled$37,210,000 for the aforementioned projects. The City Council and management believe development of these projects is needed to improve infrastructure and provide essential services to its citizens. xi Packet Pg. 158 F.1.a At least annually, management reviews and updates long-range financial plans for the general operations of the City as well as the proprietary activities. Forecasts are prepared using conservative growth estimates for major sources of revenue. Maintaining this conservative approach,coupled with an aggressive debt repayment policy, has assisted the City in retaining a favorable bond rating since 1997. Analysis is continuously updated to reflect new bond issues and the repayment thereof, as well as updates to estimates based on new developments, historical trends, changes in applicable legal requirements, and Council and management priorities. The plans for the internal service funds include the accumulation of resources for meeting both current and future needs. For example,facilities and fleet support services as well as information services collect user fees to meet current maintenance needs as well as to meet future capital replacement needs. LL Similarly, the City's policy with regard to self-insurance premiums has been to collect sufficient amounts to cover current health and dental claims as well as additions to reserves for future claims. In fiscal years 2002 and 2003 the Self Insurance(Internal Service)Fund reserves of$3.1 million were depleted due primarily to spiraling inflation in the health care industry and unforeseeable extraordinary health claims. In fiscal year 2004, City Council Ln adopted a strategy to rebuild reserves over a six-year period beginning in fiscal year 2005. Savings from changes cm in the health care plan,transfers from existing cash reserves in the General Fund and Water and Sewer Fund,and employee premiums are being used and continue to re-establish the reserves. Similar plans for the build-up of reserves exist for the City's enterprise operations. Funds are set aside to meet future capital replacement needs such as infrastructure replacement and capital asset acquisitions. This approach LL has allowed the City's water and sewer operation to meet the majority of its capital replacement needs with the issuance of minimal debt. NRH2O, the City's waterpark, has funded some new attractions and infrastructure improvements by utilizing cash reserves accumulated from operations. Cash management policies and practices–The City's current bank depository contract with JP Morgan Chase Bank, N.A., began on October 1,2014 and will be in effect through October 1,2017. Cash temporarily idle during the year was invested in four public funds investment pools, certificates of deposit, agency securities, and U.S. Treasury Notes. The maturities of the investments range from overnightto three years. The average yield for overnight investments for fiscal year 2015 was a somnambulant 0.09%, and the weighted average maturity("WAM")was 30 days. The LL average yield on all other investments for fiscal year 2015 (yield at cost)was 0.80% compared to 0.59%for the prior year. The portfolio's weighted average maturity for all other investments at the end of the fiscal yearwas 595 0 Ln days, which represents an 83 day increase over last year's WAM of 512 days. cm At fiscal year-end, approximately 40.7%of the portfolio was invested beyond one year, 11.5%was invested for one year or less, and the remaining 47.8%was invested in the overnight market. The City continues to use the > services of PFM Asset Management, LLC as an investment advisor and overseer of the portfolio,which began on U) October 1, 2009. Risk management — The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;errors and omissions;and natural disasters. While the City has historically retained a portion of these risks, coverage exists for: general, employment practice, law enforcement, and errors and omissions 2 liability; excess workers' compensation; property damage; commercial crime coverage; and employee life insurance. The Self-Insurance Fund is responsible for workers' compensation, health, automobile liability, and general liability insurance. The City maintains a stop loss third party insurance policy with respect to health claims. This policy covers City medical claims in excess of$175,000 per individual per year, and/or$7,133,360 in the aggregate for a 12-month period beginning on January 1, 2015. Self-Insurance Fund claims are funded by charges to other funds and employee, retiree, and dependent premiums. Additional information on the City's risk management activity can be found in the notes to the basic financial statements. Pension and otherpost-emplovment benefits—The City participates in the Texas Municipal Retirement System ("TMRS"), an agency authorized by the State of Texas. Employees of the City contribute a fixed percentage of xii Packet Pg. 159 F.1.a their gross pay (currently 7%). TMRS participants are immediately vested in those funds they contribute plus allocated interest. Participants are vested in employer contributions after five years of credited participation. If participants withdraw from TMRS prior to five years of credited participation,they may withdraw from TMRS those funds they contributed plus interest earnings.The City also provides postretirement health and dental care benefits for certain retirees and their dependents. As of the current fiscal year,there were 149 retired employees receiving these benefits. Additional information on the City's pension arrangements and post employment benefits can be found in the notes to the basic financial statements. Awards—The Government Finance Officers Association of the United States and Canada ("GFOA")awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Comprehensive Annual Financial Report for the fiscal year ended September 30, 2014. The Certificate of Achievement is a prestigious national LL award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded the Certificate of Achievement, a governmental unit must publish an easily readable and Ln efficiently organized comprehensive annual financial report whose contents conform to program standards. Such cm comprehensive annual financial reports must satisfy both GAAP and applicable legal requirements. The Certificate of Achievement is valid for a period of one year only. The City has received a Certificate of Achievement for the last thirty-two consecutive years. Staff believes the current Comprehensive Annual Financial Report continues to conform to the Certificate of Achievement Program requirements and it will be submitted to the LL GFOA for review. r_ The City also received an award in 2015 for the 2014-2015 operating budget. The Distinguished Budget Presentation award was granted to the City for the 25th consecutive year by the GFOA. U) Acknowledgments—Timely preparation of this Comprehensive Annual Financial Report was made possible by the dedicated service of the Finance Department staff and our independent auditors. We would like to express a. sincere appreciation to those who contributed to the process. In closing, the continued leadership and support of the Mayor, City Council, and City Manager in planning and conducting the financial operation of the City is sincerely appreciated. LL Respectfully submitted, Cn Ln cm U) Karen Bostic Kent R. Austin Assistant City Manager Director of Finance 4- 0 C) X111 Packet Pg. 160 pappnV 9LOZ jeek IBOSIJ 10 U0'IBIU9S9Jd a C990 MJV3 9LO SBx91. SIM PUBIWIN N jo Aj!3 aju :) jj r r r LL a1 a d a Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of North Richland Hills Texas For its Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2014 Executive Director/CEO xiv F.1.a ORGANIZATION CHART Citizens LEGEND *-Appointed By City Council Mayor& i Contracted 4) I Council ®®®®®®®®®®®®I a� C Co Municipal Court Judge City Secretary City Attorney Boards&Commissions a® * * City Manager * Economic Assistant to the Development City Manager Ln cm Managing � Assistant Assistant Director of Director of City Manager City Manager Public Safety Development Services+ Finance Neighborhood Services Police Public Works: Co • Accounting + Consumer Health + Police + Streets • Purchasing + Code Compliance + Detention + Traffic • Utility Customer Svc. + Dispatch U) i Budget Animal Services Fire Engineering CL • Budget Development • Animal Services + Fire Department • Engineering to • Internal Audit * Emergency Mgmt. • Tax(Tarrant County) Information Technology Public Information Functional Responsibility Utilities (, • Computers/Network * Public Information + City Hall Project + Water Ln T- • Telephone * Citicable + AARC Facility Construction + Sewer • Technology m M X Municipal Court Building Inspections Facility/Const.Mgmt. • Municipal Court • Building Inspection • Building Services • Teen Court • Rental Inspection + Construction Mgmt. • Permits Human Resources Planning&Zoning L Fleet Services • Employment • Planning + Equipment Services • Risk Management • Zoning + Fire Equip.Maint. • Civil Service 0 ®®®_____Solid Waste ®®i Parks&Recreation Functional Responsibility � I®®®®®®®®®® 4) + Parks&Recreation + Water Utilities—Fort Worth/TR Functional Responsibility • Richland Tennis Center • Tarrant Regional Transp.Coaliti g' • NRH2O • Regional Transportation Counci • Franchises + Development Review CommlttE • Legislative Analysis + Rail Initiatives • Minerals/Gas Library Golf Course I I XV Eff Packet Pg. 162 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS List of Principal Officials September 30, 2015 0 MAYOR OSCAR TREVINO MAYOR PRO TEM, COUNCIL MEMBER, PLACE 5 DAVID WHITSON COUNCIL MEMBER, PLACE 1 TITO RODRIGUEZ COUNCIL MEMBER, PLACE 2 RITA WRIGHT OUJESKY COUNCIL MEMBER, PLACE 3 TOM LOMBARD COUNCIL MEMBER, PLACE 4 DR. TIM BARTH COUNCIL MEMBER, PLACE 6 SCOTT TURNAGE COUNCIL MEMBER, PLACE 7 TIM WELCH Ln cm City Manager Mark Hindman Assistant City Manager Karen Bostic Assistant City Manager Paulette Hartman Director of Public Safety Jimmy Perdue Managing Director of Development Services Mike Curtis 2 Managing Director of Community Services Vickie Loftice City Secretary Alicia Richardson City Attorney George Staples Director of Human Resources Patrick Hillis Director of Finance Kent Austin Director of Budget and Research Mark Mills U) Director of Economic Development Craig Hulse CL Planning Manager Clayton Comstock Public Information Officer Mary Peters co Director of Information Technology Kyle Spooner Municipal Court Administrator Debbie Durko Director of Neighborhood Services Stefanie Martinez Library Director Cecilia Hurt Barham C3 Fleet Services Superintendent Tim Doyle Ln Fire Chief Stan Tinney cm Director of Facilities &Construction Chris Amarante U) M x 4- 0 C) xvi Packet Pg. 163 F.1.a 0 Financial Section S Ln 4- 0 r_ U) 2 CL Ln CD CM U) m x 4- 0 Packet Pg. 164 0 a� S Ln CD 2A 4- 0 r_ 0 m r_ 4) U) 2 CL to Ln CD C) U) m x 4- 0 C) This page intentionally left blank. Packet Pg. 165 BKDLL. 14�1 [����m (I11��Dan�T�7�4��1 CPAs&Advisors kxp7z)0,�C)67yybkd.roirn Independent Auditor's Report The Honorable Mayor and Members of the City Council � City of North Richland Hills, Texas Ln North Richland 1{illo Texas , cm Report on the Financial Statements ~- We have audited the accompanying financial statements of the governmental activities, dhobooin000'bpo ��LL activities, each major fondonddhooggrogo1oronnoinbngfbndinfoonodonofdhoCi[yofNodb8ioblond �� Hills, Texas (the City) 000f and for the year ended September 30, 20|5, and the related notes tothe financial statements,xhiob collectively comprise the City's basic financial statements listed inthe table ' of contents. Management's Rmspomxi6ilJty/orthe Financial�/A� ememtx 2 CL .. Management is responsible for the preparation and fair presentation of these financial statements in wm co accordance with accounting principles generally accepted in the United Sto1oo of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair LL presentation of financial statements that are free from material misstatement,whether due to fraud or < error. 0 Ln � Auditor's Responsibility cm Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require dho1vronlonondporfoondh000dhtoobtobnr0000nobl00000rou000boo1xhodhor the financial statements are free from material misstatement. An audit involves performing procedures toobtoinoodhovidon000bouddhoomoontoonddioolosurooin �� � the Gnouoiolototoo�ont . The procedures oolodeddepend onthe auditor's judgment, including the 000000nnontofthe doko ofnno1odolnniooto1onnont of the financial ok;onnonio x��odhordoo �o fraud or — , � �� In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing on opinion on the oDeodvon000 of the ond[y`o internal control. Accordingly,we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates nnodo by management, as well as evaluating the overall presentation of the financial oto1onnonto. Pg. 166 ~~ ~ F.1.a The Honorable Mayor and Members of the City Council City of North Richland Hills, Texas Page 2 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions a� In our opinion, the financial statements referred to above present fairly,in all material respects, the 0 respective financial position of the governmental activities, the business-type activities, each major fund, LL and the aggregate remaining fund information of the City as of September 30, 2015, and the respective changes in financial position and, and where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Ln Emphasis of Matter cm As discussed in Note IV to the financial statements,in 2015, the City changed its method of accounting for pensions with the adoption of Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions an amendment of GASB Statement No. 27, as 2 amended. Our opinions are not modified with respect to this matter. - r_ Other Matters Required Supplementary Information U) 2 CL Accounting principles generally accepted in the United States of America require that the management's discussion and analysis,budgetary and pension/other postemployment benefit information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not part of the basic financial statements,is required by the Governmental Accounting Standards Board, LL who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to Ln the required supplementary information in accordance with auditing standards generally accepted in the United States of America,which consisted of inquiries of management about the methods of preparing the cm information and comparing the information for consistency with management's responses to our M inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively ,- comprise the City's basic financial statements. The accompanying supplementary information including the combining fund statements and budget to actual schedules, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the 0 underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures,including comparing and reconciling such information directly to the d underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. 2 Packet Pg. 167 F.1.a The Honorable Mayor and Members of the City Council City of North Richland Hills, Texas Page 3 Other Information 0 Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying information in the introductory and statistical sections listed in the table of contents is presented for purposes of additional analysis and is not r_ a required part of the basic financial statements. Such information has not been subjected to the auditing M procedures applied in the audit of the basic financial statements, and accordingly,we do not express an LL opinion or provide any assurance on it. Ln c.(., Dallas, Texas February 12, 2016 2 4- 0 r_ U) 2 CL Ln to U) M X 4- 0 to 3 Packet Pg. 168 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2015 The City of North Richland Hills, Texas (the "City") Management's Discussion and Analysis ("MD&A") is designed to (a) assist the reader in focusing on significant financial issues, (b) provide an overview of the City's financial activity, (c) identify changes in the City's financial position (its ability to address the next and subsequent years' challenges), (d) identify any material deviations from the financial plan (the approved budget), and (e) identify individual fund issues or concerns. MD&A is designed to focus on the current year's activities, resulting changes, and currently known facts, and TO should be read in conjunction with the City's financial statements (beginning on page 17). Financial Highlights • The assets and deferred outflows of the City exceeded its liabilities and deferred inflows at the close of the fiscal year ended September 30, 2015 by over $309.1 million (net position). Of this amount, approximately $47.8 million (unrestricted net position) may be used to meet the government's ongoing obligations to Ln citizens and creditors. cm • The City's total net position decreased by $2.4 million due to operations in fiscal year 2015. An additional I decrease in net position of$13.4 million was due to the adoption of GASB Statement No. 68. Details of this decrease may be found beginning on page 14. 0 2 • As of September 30, 2015, the City's governmental funds reported combined fund balances of$76,216,651, which represents a decrease of$23,998,585 in comparison to the prior fiscal year's ending balance. Of this amount, $22,317,473 may be attributed to General Capital Project expenditures, especially the new city hall facility. • Approximately 38.1% of total governmental fund balance, or $29,055,047, is available for appropriation at the City's discretion (assigned and unassigned fund balance). CL • The City's objective regarding General Fund fund balance is to maintain a minimum unassigned fund co balance to operate the City for a period of 60 days or 15% of the following year's appropriated budgeted expenditures. This objective was met at year end. • At the end of the current fiscal year, unassigned fund balance for the General Fund was $9,457,571 or Ln 23.8% of General Fund actual expenditures for 2015. cm • The City's total debt increased by approximately $13,846,781 (includes premiums) during the current fiscal year. This increase represents issuance of $32,825,000 in general obligation bonds and certificate of X obligations, net of scheduled principal payments and debt refundings. U) Overview of the Financial Statements MD&A is intended to introduce the reader to the City's basic financial statements. The City's basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial 2 statements, and 3) notes to the financial statements. The report also contains other required supplementary information in addition to the basic financial statements. Government-wide financial statements - The government-wide financial statements are designed to provide Cj readers with a broad overview of the City's finances in a manner similar to private-sector business. The Statement of Net Position presents information on all of the City's assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial condition of the City is improving or deteriorating. The Statement of Activities presents information showing how the City's net position changed during the fiscal year. All of the current year's revenues and expenses are taken into account regardless of when cash is 4 Packet Pg. 169 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2015 received or paid. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, unused vacation leave). Both the Statement of Net Position and the Statement of Activities are prepared using the accrual basis of accounting as opposed to the modified accrual basis used in governmental funds. In the Statement of Net Position and the Statement of Activities, the City's operations are separated into two types of activities: a� • Governmental activities- Most of the City's basic services are reported here, including the activities of public safety, culture and recreation, public works, and general government. Property taxes, sales taxes, and franchise fees finance most of these activities. • Business-type activities— For this type of activity, the City charges a fee to customers to cover all or most of the cost of services provided including the recovery of costs of capital assets used in the delivery of such Ln services. The City's water and sewer, golf course, and aquatic park activities are reported here. cm The government-wide financial statements can be found on pages 17 — 19 of the comprehensive annual financial report. Fund financial statements - A fund is a grouping of related accounts that is used to maintain control over L resources that have been segregated for specific activities or objectives. Fund financial statements provide detailed information about the most significant funds, not the City as a whole. Some funds are required to be established by state law, bond covenants, or Council ordinance. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. U) • Governmental funds - The majority of the City's basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances available for appropriation at year- end. These funds are reported using an accounting method identified as the modified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted to cash. co Statements of governmental funds provide a detailed short-term view of the City's general government operations and the basic services it provides. Governmental fund information helps the reader determine LL whether there are more or fewer financial resources available for appropriation in the near future to finance City programs. By comparing information presented for governmental funds with similar information 0 Ln presented for governmental activities in the government-wide financial statements, readers may better understand the long-term impact of the government's near-term financing decisions. The relationship or differences between governmental activities (reported in the Statement of Net Position and the Statement of cc Activities)and governmental funds are detailed in a reconciliation following the fund financial statements. X The City maintains six major individual governmental funds. Information is presented separately in the Governmental Funds Balance Sheet and in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances for these funds (pages 20 - 29). The General Fund, General Debt Service Fund, General Capital Projects Fund, Parks and Recreation Development Fund, Gas Development, and Tax Increment Finance District No. 2 are the major governmental funds of the City. Data from the other non- 2 major governmental funds are combined into a single, aggregated presentation in the governmental statements. • Proprietary funds -The objective of proprietary funds is to charge customers, both internal and external, for Cj services provided an amount sufficient to cover virtually all costs associated with providing the services including recovery of amounts required to replace assets used in the delivery of such services. These services are generally reported in proprietary funds. Proprietary funds are reported in the same manner that all activities are reported in the Statement of Net Position and the Statement of Activities. In fact, the City's enterprise funds (a component of proprietary funds) are almost identical to the business-type activities that are reported in the government-wide statements, but provide more detail and additional information, such as the statement of cash flows. The internal service funds (the other component of proprietary funds) are utilized to report activities that provide supplies and services for the City's other programs and activities, such as the City's facilities maintenance and construction services, fleet management, employee and 5 Packet Pg. 170 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2015 property insurance coverage, and telephone and computer services. Because these services benefit both governmental and business-type functions, they have been included in both the governmental and business-type activities in the government-wide financial statements. 0 The City maintains three enterprise funds. The City uses enterprise funds to account for its provision of water and wastewater services, golf course operations, and water park activities. The City has two major proprietary funds: Utility and Aquatic Park. Golf course is considered a non-major fund. Financial statements for the enterprise funds can be found on pages 30-33 of the report. Notes to the financial statements - The notes to the financial statements provide additional information that is essential for a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 37- 70 of this report. Government-Wide Financial Analysis Ln The government-wide financial analysis highlights the information contained in the Statement of Net Position cm and Statement of Activities. The City's combined net position was $309,140,200 as of September 30, 2015. Analyzing the net position of governmental and business-type activities separately, governmental activities total net position was $230,441,367 and business-type activities total net position was $78,698,833. This analysis focuses on the net position and changes in program and general revenues and significant expenses of the City's governmental and business-type activities. 0 Statement of Net Position - The largest portion of the City's net position (82.07%) reflects its net investment in capital assets (e.g., land, buildings, machinery and equipment) less any related debt used to acquire those assets that is still outstanding. The City uses capital assets to provide services to citizens; consequently, capital assets are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these obligations. The following table presents CL the condensed government-wide statement of net position as of September 30, 2015 and 2014. Current and other assets include restricted deposit and investment balances. Schedule of Assets,Liabilities,and Net Position Amounts shown in thousands($000's) As of September 30,2015 Ln cm Governmental Activities Business-Type Activities Total 2015 2014 2015 2014 2015 2014 Currentand other assets $100,964 $ 122,693 $ 35,911 $ 39,376 $136,875 $ 162,069 Capital assets,net 308,281 264,349 69,242 70,978 377,523 335,327 Total Assets 409,245 387,042 105,153 110,354 514,398 497,396 2 Total deferred outflows of resources 5,800 267 701 22 6,501 289 Long-term liabilities 153,843 132,973 21,850 19,343 175,693 152,316 Other liabilities 29,230 13,788 5,102 6,415 34,333 20,203 Z Total liabilities 183,073 146,761 26,953 25,758 210,026 172,519 0 Total deferred inflows of C3 resources 1,530 206 203 40 1,733 246 Net Position: 4) Net investments in capital assets 196,388 196,927 57,336 58,376 253,724 255,303 Restricted 3,451 4,116 4,154 3,788 7,605 7,904 Unrestricted 30,602 39,299 17,209 22,414 47,811 61,713 Total net position $230,441 $ 240,342 $ 78,699 $ 84,578 $309,140 $ 324,920 6 Packet Pg. 171 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2015 Statement of Activities - Governmental activities and the restatement of beginning net position decreased the City of North Richland Hills' net position by $9,900,688 in fiscal year 2015, and business-type activities decreased net position by$5,879,628. The following table presents the condensed government-wide statement of activities for the years ended September 30, 2015 and 2014. Changes in Net Position Amounts shown in thousands(000's) Year Ended September 30,2015 Governmental Activities Business-Type Activities Total 2015 2014 2015 2014 2015 2014 Revenues: Program revenues: Charges for services $ 13,207 $ 13,414 $ 36,400 $ 36,818 $ 49,607 $ 50,232 Operating grants and contributions 2,966 2,826 - 85 2,966 2,911 Ln Capital grants and contributions 479 2,676 - 479 2,676 General revenues: Property tax 26,099 24,903 26,099 24,903 Sales tax 18,572 18,008 18,572 18,008 Nixed beverage 138 130 138 130 Franchise taxes 4,502 4,333 4,502 4,333 Occupancy taxes 233 207 - - 233 207 A LL Unrestricted investment earnings 514 320 120 20 634 340 Miscellaneous 188 142 35 300 223 442 Total revenue 66,898 661959 36,555 37,223 103,453 104,182 Expenses: General government 11,394 11,226 - - 11,394 11,226 Public safety 31,516 31,035 31,516 31,035 U) Culture and recreation 12,542 11,931 12,542 11,931 Public works 8,959 8,962 8,959 8,962 CIL Interest and other fees 4,488 3,916 - - 4,488 3,916 Utility - - 30,229 28,067 30,229 28,067 Aquatic park 4,354 4,543 4,354 4,543 Golf course - - 2,394 2,433 2,394 2,433 Total expenses 68,899 67,070 36,977 35,043 105,876 102,113 U_ Increase(decrease)in net position before transfers (2,001) (111) (422) 2,180 (2,423) 2,069 Ln Transfers between governmental and cm Business-Type 3,974 4,162 (3,974) (4,162) - - U) Net Increase(decrease)in net position 1,973 4,051 (4,396) (1,982) (2,423) 2,069 M Net position-beg.Bal. 240,342 236,291 84,578 86,560 324,920 322,851 12 Adjustment to beginning net position, U) accounting standard implementation (11,874) - (1,483) - (13,356) - Net position-end of year $ 230,441 $ 240,342 $ 78,699 $ 84,578 $ 309,141 $ 324,920 Governmental activities - Overall assets for Governmental Activities increased $22.2 million or 5.7% in 2015 a, over 2014. This increase can be traced to the capital asset activity. Capital assets increased $43,931,767 (the majority in construction in progress) in 2015. This activity was related to capital improvement projects, especially the construction of the new $70 million dollar city hall municipal facility expected to be completed early in 2016. C) Debt issued increased liability totals by 10.3% or approximately $11.9 million over 2014 balances. Final certificates of obligation totaling $18.6 million were issued for funding of the new city hall facility construction. E The other major increase in long-term liabilities results from the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions. The goal of the Statement is to report explicitly the government's net pension liability (in prior years the amount was included in the Notes section but not on the face of the financial statements). This change removes last year's governmental activities Net Pension Obligation of $3,446,602 (business-type activities $788,349) and restates beginning net position. This 7 Packet Pg. 172 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2015 restatement adds a Net Pension Liability as of September 30, 2014. During fiscal year 2015, Net Pension Liability decreased $287,708 for a total $21,341,887. More information is provided in Note IV.D. Governmental activities increased the City of North Richland Hills' net position by approximately$1.97 million in 0 fiscal year 2015, before recognition of the restatement of beginning net position. The City had an increase in tax 4) revenues of$1.963 million during 2015. Property and Sales tax revenues incurred the biggest gains of this total with increases of $1,196,000 and $564,000 respectively. Property taxes rose due to a 5.6% increase in the taxable base, with one-third of the increase resulting from new construction and two-thirds from existing value changes. Sales taxes grew 3.1% due to continued economic recovery, especially from the major interstate corridor construction that caused sales tax revenues to level off in prior years. Charges for services decreased $207,000 or approximately 1.5%. This decrease results primarily from a drop in ambulance billing revenue, from$2.48 million in 2014 to $2.176 million in 2015. Ln Operating Grants and Contributions saw an increase of$140,000 in 2015 versus 2014 activity. This increase is cm a result of continued sharing of services with other contiguous municipalities surrounding the City. The sharpest change was to Capital Grants and Contributions, which decreased by$2,197,000. This decrease was expected due to completion of major grant capital projects from prior years. In 2016 the City expects another influx of capital grant activity. Streets infrastructure grants and parks and recreation capital development grants are the primary sources of these funds. 2 4- The Governmental activities saw a total increase in expenses totaling $1,829,000 or approximately 2.7% above 2014 levels. This change appears as an increase across all activity divisions except Public Works. Culture and recreation rose due to higher activity volume at the NRH Centre. Two non-fund specific expenses, OPEB and depreciation, recognized only in the government wide statements, grew during 2015. Like last year, OPEB costs 0 continue to rise, increasing the liability by$998,612, or 10.22%. Depreciation expense rose $112,923,just 1.3%. CL Debt service interest and fiscal charge expense increased by approximately 14.61% or$572,000. This increase was expected by City Council and Management. In late 2014 the City issued the final phase of a total $70 co million in new debt for construction of the new municipal city hall facility. The City has projected continued increases in interest and fiscal service charges in the next years until principal repayments begin. The other changes creating an increase in overall governmental activities are fund level. Refer to the fund level financial analysis section for further details. 0 Ln Expenses and Program Revenues+_.w.Gao1JeN"11t't"1ental Activities w.w.w.w.w.w.w.w.w.w U) $(000.x) $3,5,000 $'30,000 w.w. .........w. w.w. w.w.w.. $25,000 $20,000 0 1 ,00 t ........... ....„.......m.......m........m.... ....... >1 $10,00 $ ,00 $t General Public'Safety Culture& Public Works interest&a Government Recreation Other Fees Expenses : ,Revenues 8 Packet Pg. 173 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2015 ...................................................................................................................................................................................................................................................................................................................................................................................................................................... General Revenues by Source - Governmental Activities 0 Unrestricted Occupancy Taxes- Investment Earnings 0,46% 1.02% � �Miscellaneous Franchise Taxes—, 0.37% 8.96% ... Mixed i3everaes 0.27% Ln a� Sales Tax 2 36.97% .® Property Taxes 51.95% . wwa:: U) CL CO iq t CO Business-type activities— Business-type activities resulted in a decrease to the City's total net position of$4.397 0 million in 2015. Overall the Utility operations (before general revenues and transfers to governmental activities) resulted in a decrease of$423,000. Transfers out of the Utility Fund into General Fund totaling $3.729 million, for PILOT fees, indirect fees, and administrative fees, further reduced BTA net position. Finally, the impact of the GASB 68 restatement reduced beginning net position $1.483 million. The overall decrease for Business-type > activities related to Utility fund share is $4.223 million,which is inclusive of transfers out totaling $3,954,888. Aquatic park and Golf course both had net decreases in net position (before general revenues and transfers to governmental activities)of($100,391) and ($54,189), respectively. The Aquatic park and Golf course operations are funded by consumers who patronize the facilities of both of r these programs. The Aquatic Park saw a decrease in net position because attendance to the park was down for the second consecutive year. Calendar 2015 was the wettest year on record in north Texas, and the prodigious rainfall drove attendance down. The City expects attendance to rebound in 2016, when a new tower slide attraction will come online. Similarly, the golf course was negatively affected by the number of rain days in 2015, but the City is optimistic about 2016. Although much of the decrease in net position is directly related to net transfers out of business-type activities to E governmental activities for shared costs, Utility Fund activities also experienced higher costs and lower revenues thanks to the wet weather. On the whole, the weather demonstrated how sensitive business-type activities are to climate impacts. 9 Packet Pg. 174 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2015 Expenses and Program (Revenues- Business-Type Activities $(000.$) 0 $3,5,000 ... �IIIDI�I�IUU�ul�ll............................................................................................................................................................................................................................................................... $30,000 $75,000 $70,000 $15,000 $10,000 .' IUUUUU)IIUIU)IIIUUIIIUUU $5,000 Utility Aquatic Park Golf 2 uuuuu(Expenses Revenues 0 r_ 0 Revenues by Source . Business-type Activities �ad�� I IIIII�I�IIII @Iii I lu�� IIII Illu�lu IIII fld��s����uiu��o,�, e y uuuu uuuuu uuuuu uuuuu a uuuuuu uu uuuuu uuu uuuuuuuuuu uuGuueu VVUU u_ C) Services-Utility Ln 0.7% U) M X Grit Course 6.5% ua AgMcWerk IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII I I 10 Packet Pg. 175 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2015 Fund Level Financial Analysis Governmental Funds. The focus of the City of North Richland Hills' governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, the unassigned fund balance may serve as a useful measure of a government's net resources available for discretionary use as they represent the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the City's Council itself, or the designated individual delegated the authority to assign resources for use for particular purposes (Council Designated). At September 30, 2015, the City's governmental funds reported combined fund balances of $76,216,651, a decrease of($23,998,585) in comparison with prior year. Unassigned fund balance $9,050,762 is available for spending at the government's discretion. The remainder of the fund balance is either nonspendable, restricted, Ln committed, or assigned to indicate that it is 1) not in spendable form ($374,468), 2) legally required to be cm maintained intact or to be used for a particular purpose ($45,221,456), 3) committed for particular purposes ($1,565,680), or 5) assigned for particular purposes ($20,004,285). The general fund is the chief operating fund of the City. For 2015, the general fund unassigned fund balance was $9,457,571. Total general fund balance decreased $2,512,770 for 2015. Unassigned fund balance represents approximately, 23.8% of total general fund expenditures, while total fund balance represents 28.5% of that same amount. The general fund balance decrease was due to the transfer of$1,200,000 for a light rail station project to the General Capital Projects Fund. Also, $2,000,000 that had been assigned for municipal facilities was released and consumed by operations. The General Capital Projects fund decreased governmental fund balance by approximately $22.3 million. The City did issue an additional $22,215,000 in new bonds that remained partially unused at year end. Of the fund's CL $54.6 million in expenditures, the City Hall project consumed $50.6 million. Additionally, the fund received transfers in from various funds for the light rail station and street improvements totaling $5,958,511. These funds were received from other funds who allocated prior years fund balance toward the construction project, thus reducing the amount of debt to be issued. The expenditures to offset these transfers are expected in 2016. General Debt Service fund saw a decrease to fund balance of $599,273. The decrease is associated with Ln planned usage of debt service reserves to offset principal and interest payments for 2015. The debt service fund had accumulated $1.8 million in fund balance at the end of 2014. City Council and City Management planned the draw down to offset transfers out of regular operations for debt service requirements. X Parks and Recreation Development Corporation increased governmental fund balance by $965,091. Of the 12 2 increase, $450,999 came from Rec Centre increased activity- FE The Gas Development fund contributed an increase to governmental fund balance totaling $607,693. Expenditures totaled only$57,693 for a capital project. Proprietary Funds. The proprietary funds provide the same type of information found in the government-wide financial statements. 0 General Fund Budgetary Highlights C) Original budget compared to final budget. During the fiscal year, there were sufficient reasons to revise original estimated revenues and original appropriations. Revenue amendments resulted in a total decrease of revenue projections by $140,341, and appropriations were decreased by $140,341 also. Specific decreases to revenue projections for charges for services (down $1,573,956), miscellaneous revenue ($78,750), licenses and permits ($67,356), and property taxes ($60,035) were made. The sharp drop in charges for services resulted from a change in the third-party ambulance billing service provider and a change from booking gross revenue and allowance for doubtful accounts to net revenue. Other appropriations were increased by $1,300,000. This 11 Packet Pg. 176 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2015 increase directly relates to a transfer out of $1,300,000. The City increased this appropriation of expense to accommodate usage of fund balance for a new rail station. Appropriations were amended to increase one time transfers of restricted reserves to construction projects (i.e. rail station) for major facility construction and street maintenance. Non-departmental expenditures were reduced $1,398,537 to offset the ambulance billing change mentioned above. Adjustments to other departments were minimal. a� Final budget compared to actual results. The most significant negative differences between estimated revenues and estimated appropriations to actual were as follows: LL Estimated Actual Revenue source Revenues Revenues Difference < Mixed beverage taxes 140,000 138,100 (1,900) Ln Intergovernmental 4,598,468 4,556,214 (42,254) cm Estimated Actual Expenditures Appropriations Expenses Difference Planning and Inspections 1,027,221 1,030,914 (3,693) Police 12,585,338 12,644,381 (59,043) 4- 0 Revenue sources saw negative variances in two categories, both small-mixed beverage taxes ($1,900 or 1.36%) and intergovernmental ($42,254 or 0.92%). The intergovernmental change is comparable to the prior year, when revenue had a 1% decrease or ($45,132) variance. As with last year, this decrease in actual revenues is related to shared services revenue for the NRH Police Department combined dispatch and jail U) center. CL Capital Asset and Debt Administration Capital assets - At the end of fiscal year 2015, the City had $377.5 million (net of accumulated depreciation) invested in a broad range of capital assets including, but not limited to, police and fire equipment, buildings, park facilities, roads, bridges, aquatic park facilities, golf course assets, and the water and sewer system. The following table provides capital asset balances net of accumulated depreciation for each major category for both Ln governmental and business-type activities for the fiscal years ending September 30, 2015 and 2014. cm Capital Assets U) (net of Accumulated Depreciation) Amounts shown in thousands (000's) Governmental Activities Business-Type Activities Total Total 2015 2014 2015 2014 2015 2014 Land &land imp. $ 80,844 $ 82,376 $ 2,579 $ 2,579 $ 83,423 $ 84,955 2 Works of art 310 310 - - 310 310 Buildings &imp. 42,560 41,032 1,866 4,405 44,426 45,437 Other imp. 98,293 98,562 11,631 10,345 109,924 108,907 Utility plant - - 50,312 49,225 50,312 49,225 0 Machinery&equip. 7,548 8,245 1,314 2,703 8,862 10,948 Assets held for resale 3,837 61 - - 3,837 61 Const.in progress 74,889 33,763 1,540 1,721 76,429 35,484 Total capital assets $308,281 $264,349 $69,242 $70,978 $ 377,523 $335,327 12 Packet Pg. 177 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2015 This year's major additions included: Description Amount Various Park Improvements $4,401,192 Various Water/Sewer Repl and Improvements 2,810,364 4) Building (new Animal Shelter) 4,364,245 Various Land Acquisitions 1,231,523 Various Vehicles 992,922 Computer,Machinery,and Equipment 630,212 LL Various Street Improvements 35,695 Capitalized Interest 13,097 Construction commitments and other limitations affecting availability of fund resources: Ln The City prepares an annual Capital Improvement Projects budget that assigns specific funds and resources for use to only these projects. Until appropriations are removed these resources are unavailable for general operations or new capital projects. The City currently has committed resources (displayed as Noncurrent Assets—cash equivalents in the 2 LL Statement of Net Position)totaling $53,089,551 for both the Governmental and Business-type activities. r_ These resources will be used to purchase major equipment, construct new buildings, and add new infrastructure such as water and sewer lines and streets. More information on capital assets can be found in footnote III.C. in the Footnotes to the financial statements. CL Debt-At September 30, 2015 and 2014, the City had the following debt outstanding: Outstanding Debt Amounts shown in thousands (000's) LL C) Governmental Activities Business-Type Activities Total Ln 2015 2014 2015 2014 2015 2014 U) General obligation bonds $ 77,893 $ 79,927 $ 1,812 $ 1,693 $ 79,705 $ 81,620 Certificates of obligation 50,105 36,050 13,670 15,280 63,775 51,330 Sales tax revenue bonds - 105 - - - 105 T Capital lease - - 163 244 163 244 Totals $127,998 $116,082 $ 15,645 $ 17,217 $143,643 $133,299 In fiscal year 2015, the City issued $32,825,000 in new debt. The presently outstanding general obligation debt of the City is rated "AA2" by Moody's and "AA+" by S&P. The City also has issues outstanding which are rated "Aaa" by Moody's and "AAA" by S&P through credit enhancement in the form of municipal bond insurance policies. As a home rule city, the City is not limited by law in the amount of debt it may issue. The City's Charter provides E that general property taxes are limited to $1.50 per $100 of assessed valuation for general governmental services including the payment of principal and interest on general obligation debt. The City's property tax rate is $0.61 per $100 assessed valuation. The current ratio of tax-supported debt to assessed value of all taxable property is 2.63%. Additional detailed information on long-term debt activity is disclosed in the notes (III-E)to the financial statements. 13 Packet Pg. 178 CITY OF NORTH RICHLAND HILLS, TEXAS Management's Discussion and Analysis September 30, 2015 Pensions and Retiree Health Care Pensions and retiree health care continue to receive negative media attention as governments around the nation struggle to fund these commitments. The City is committed to providing programs in these areas that are fair to both employees and taxpayers and that can be sustained over the long term. Effective for fiscal year 2015, Governmental Accounting Standards Board (GASB) Statement No. 68, "Accounting and Financial Reporting for Pensions, an amendment of GASB 27", created specific reporting requirements for pensions that are different than that used for funding purposes. Both valuations are important as the reporting valuation provides a rigorous standard measure that can be used to compare the City's pension liabilities to other governments from around the nation. The funding valuation is important as the actuarial methods used including strategies for repaying any unfunded actuarial accrued liabilities combined with the City's history of making those contributions provides insights regarding the City's commitment to and the effectiveness of its funding strategy. Information contained in the financial statements themselves including the Ln first schedule of Required Supplementary Information (RSI), Schedule of Changes in Net Pension Liability and Related Ratios, is based on the reporting valuation. The second schedule in the RSI, Schedule of Contributions, is based on the funding valuation. On a reporting basis, the City's financial statements reflect a Net Pension Liability as of September 30, 2015 of $21,341,887, which is 67% of the City's annual covered payroll of$31,952,469. 2 Retiree health care's actuarially accrued liability has been calculated in accordance with GASB Statement No. 45, "Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions", to be $52,473,590 as of September 30, 2015, an increase of$4,241,661 from the previous valuation. Economic Factors and Next Year's Budgets and Rates 2 The two largest revenue sources for the General Fund are property tax revenues and sales tax receipts. After CL working through a struggling economy, the City of North Richland Hills is finally experiencing a stabilizing economy. Given this rise, the budget process has predicted a steady growth in property values and sales tax retail base. For budget year 2015-2016, sales tax receipts are anticipated to be 2% higher than the 2014-2015 budget year. Property tax values are anticipated to continue rising due to steady new construction growth plus LL the stabilization of property values. The City of North Richland Hills expects a 3%growth in property values. Ln C) The fiscal year 2015-2016 budget maintains the property tax rate of$0.61/$100. For fiscal year 2015-2016 the tax rate distribution (per$100 assessed value)for the City is as follows: U) M Tax Rate X Tax Rate Distribution Schedule Distribution U) General Fund - Maintenance & Operations $ 13,820,165 Debt Service Fund - Interest and Sinking 8,840,000 Total distribution of tax proceeds $ 22,660,165 By policy, the City maintains an unassigned General fund balance of 15% of budgeted expenditures. The use of available fund balance for one-time expenditures eliminates the financial impact of such purchases on future budgets. C) Requests for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of North Richland Hills, Director of Finance, P.O. Box 820609, North Richland Hills, Texas 76182-0609. 14 Packet Pg. 179 F.1.a 0 a� S Ln 2 4- 0 r_ 0 BASIC FINANCIAL STATEMENTS to CO Ln cm x 4- 0 15 Packet Pg. 180 0 a� S Ln CD 2A 4- 0 r_ 0 m r_ 4) U) CL to Ln CD C) U) m x 4- 0 C) This page intentionally left blank. 16 Packet Pg. 181 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Statement of Net Position September 30,2015 Primary Government Governmental Business-Type Activities Activities Total Assets CURRENT ASSETS Cash and cash equivalents $ 9,137,940 $ 2,204,919 $ 11,342,859 4) Investments 21,243,924 9,813,414 31,057,338 Receivables,net of allowances: Accounts 1,115,077 4,619,370 5,734,447 dJ Property taxes 175,103 - 175,103 Other taxes 3,686,509 - 3,686,509 Interest receivable 137,444 20,103 157,547 Special assessments 80,202 - 80,202 Intergovernmental 808,729 701,546 1,510,275 Other 289,643 - 289,643 Prepaids 491,881 42,363 534,244 :3 Inventories,at cost 211,680 303,519 515,199 Internal balances (6,892,522) 6,892,522 Total current assets 30,485,610 24,597,756 55,083,366 NONCURRENT ASSETS Cash and cash equivalents 44,493,808 8,595,743 53,089,551 Investments 25,984,491 2,717,532 28,702,023 Capital assets-net: Land and nondepreciable land improvements 80,844,371 2,579,137 83,423,508 Buildings and improvements 64,010,970 4,405,053 68,416,023 A Improvements other than buildings 191,775,616 24,549,099 216,324,715 Utility plant - 105,457,128 105,457,128 Machinery and equipment 23,096,662 4,417,458 27,514,120 Artwork and historical treasures 310,208 - 310,208 Assets held for sale 3,836,877 - 3,836,877 Construction in progress 74,887,743 1,540,134 76,427,877 Accumulated depreciation (130,481,740) (73,706,034) (204,187,774) 4) Total capital assets-net 308,280,707 69,241,975 377,522,682 U) Total noncurrent assets 378,759,006 80,555,250 459,314,256 CL Total assets 409,244,616 105,153,006 514,397,622 Deferred Outflows of Resources Deferred loss on refunding 651,014 58,981 709,995 Pension contributions 3,494,480 436,395 3,930,875 Difference in projected and actual earnings on pension assets 1,654,322 205,930 1,860,252 Total deferred outflows of resources 5,799,816 701,306 6,501,122 Liabilities CURRENT LIABILITIES C) Accounts payable and accrued liabilities 9,228,704 3,331,566 12,560,270 Ln Deposits and other liabilities 5,276,992 126,993 5,403,985 Retainage payable 2,409,230 - 2,409,230 Compensated absences 446,601 52,263 498,864 U) Unearned revenue 119,732 77,412 197,144 X Accrued interest payable 561,742 65,304 627,046 4) Bonds payable 10,971,021 1,371,082 12,342,103 Capital lease payable - 77,502 77,502 U) Intergovernmental payables 216,385 - 216,385 Total current liabilities 29,230,407 5,102,122 34,332,529 NONCURRENT LIABILITIES Customers'deposits - 2,570,866 2,570,866 Bonds payable 122,488,178 14,310,803 136,798,981 Capital lease payable - 85,602 85,602 2 Compensated absences 2,832,623 328,037 3,160,660 Intergovernmental payables - 969,286 969,286 Other post employment benefits obligation 9,549,471 1,216,566 10,766,037 Net pension liability 18,972,656 2,369,231 21,341,887 Total noncurrent liabilities 153,842,928 21,850,391 175,693,319 Total liabilities 183,073,335 26,952,513 210,025,848 C) Deferred Inflows of Resources Deferred gain on refunding 180,389 35,000 215,389 Difference in expected and actual experience 1,349,341 167,966 1,517,307 Total deferred inflows of resources 1,529,730 202,966 1,732,696 Net Position Net investment in capital assets 196,388,094 57,335,778 253,723,872 Restricted for: Debt service 3,451,280 - 3,451,280 Impact fees restricted for construction - 4,153,891 4,153,891 Unrestricted 30,601,993 17,209,164 47,811,157 Total net position $ 230,441,367 $ 78,698,833 $ 309,140,200 The notes to the financial statements are an integral part of this statement. 17 Packet Pg. 182 0 a� S Ln CD 2A 4- 0 r_ 0 m r_ 4) U) CL to Ln CD C) U) m x 4- 0 C) This page intentionally left blank. 18 Packet Pg. 183 F.1.a (`�O F O�(h Lf) �F N LC) N N O m m O LO V(D N V O O r LO N (D (D N O LO C') O O O O C`) r V r O (fl V O ( V O O O O � N LB h � (fl � � O h N C N N (D V N (D N N r V O N N N M M O (`') O (D V O O LO V V O N V O ll') r N O r (`') O (`') (`') N O N N Lo (D V �p N O N (fl V N ll') N O Lo � 0 N N N V V O (`') ll') .N y0 LL') LO V N N (fl N T O N V (`') Cl) d `-'N `-'LL') LL') N LL) `-'CN,) O Z .0 y) U3 U3 U3 aa'i d.8 T Lf) 0 N N Co N CN 0 LO Lf) (fl (`') Co a) N O LL) LL) N LC) N O LL) N r N oc U � rnrnrn � � «Qo wc�rnv_ m � w 'p N �N (D N r r O LO (`') O (D N N LO N O Lo r- r- M r- 0) [1- N O O o 00 r a) m N (`�O O (h (h N N O m m N m N O LLB I�N O r LO N (D (D (D ( 0 0 0 0 (D N N V r LO (D N (D a) ya (D V O CO V O O N LO (`') r O N O O O (D (`') (`') Q C N N N (fl V N (fl (fl O oi q7 00 (`) O N (`) N X LO V V O Co V V O r N O M I- I- I- (D V W N O N (fl V N N O LLB LLB N LL') O N O (h N V lqi L- C > LL) LL) Co V ( V O CO O ' N LZ N O ¢ 2 a r W a) a) 'C N 0 V N p F LLB i Q O T O U U u3 u3 0 .o o O _ . > ' 9 20 �S Zc 00 vLO 00 00 m w ° a E Q ¢ E as � � —i a) > a7 7 r O) O (D (D C O- 2 O a) Y V r V (fl (fl E o O O C > '� O O O �'6 O a) o U u3 u3 E .y :N S; s T Co p N W d a) N a) n'E O N 'C LL a) O N N N (`') N O Qj O C N >i Q > .� C Oa) C LL a7 MO > O N N O C Eb'6 p n Lr vvri (o �Ln o)� > a) -o Fu a) O O (D O N m R O O a) N a s 1 a) Q L N N � 7 O o N O N N N (`) (`) (D 0 0 0 V L6(`') (`') r (`') N V N (`') V Co N O- a) N C •^w C C i.+ Co Ln t (n a) a) x U U C 7 a) O ¢ OO U xa (q � li0 C N ms U a as u3 u3 D EE C14 CD Z Z Z U) h � LL) V (2 LO LO N N O O 0 (D O N (`) LL N N N O N V V r— (D (`O') LL) L O V N (`') () O N (gy(pp Q � N V N O V N (D Lo 4 x (`') (D (`') (`') O W W Cu 2 N Cu 1) N N N p 2 2 E r U U C W N a) a) > h n o a) m n o > o a) w o a 0 t C U t � N � N E E m o O m E �S ZT � O C Y C >O Q Co N O N C T d > o Co Co °>� U' C �' a7 O Z C N 0 E oc� aUa LL a` (- Packet Pg. 184 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Balance Sheet Governmental Funds September 30, 2015 0 General Capital General Debt Parks and Recreation General Fund Projects Service Development Assets a� Cash and cash equivalents $ 3,994,559 $ $ $ 853,695 Investments 9,294,060 2,127,417 LL Receivables,net of allowance _ Accounts 999,574 Property taxes 175,103 - Other taxes receivable 2,015,088 803,713 CM Interest receivable 5,392 66,878 390 1,164 Special assessments receivable - 80,202 - - Intergovernmental receivables 40,067 621,186 95,686 Other receivables 193,451 9,576 31,934 2 LL Due from other funds 147,760 - - - Prepaid items 120,951 1,945 4,976 5,583 Inventories,at cost 74,558 - - 15,611 Advances to other funds 145,764 - U) Restricted: CL Cash and cash equivalents 34,087,620 425,001 Investments - 12,471,910 752,853 - Total assets $ 17,206,327 $ 47,339,317 $ 1,183,220 $ 3,934,803 Liabilities Accounts payable $ 982,281 $ 5,405,560 $ - $ 45,184 Ln Retainage payable - 2,409,230 - CM Accrued liabilities 848,164 5,123 93,225 U) Intergovernmental payables - - - Deposits and other liabilities 3,044,001 726,058 27,500 U) Advances from other funds - - - Unearned revenue 58,549 - 60,284 Total liabilities 4,932,995 8,545,971 226,193 Deferred Inflows of Resources 2 Unavailable revenue-ambulance fees 802,771 - 4- Unavailable revenue-property taxes 175,103 Unavailable revenue-grants - - Unavailable revenue-assessments - 149,789 Total deferred inflows of resources 977,874 149,789 20 Packet Pg. 185 F.1.a 0 Tax Increment Other Gas Development Finance District#2 Governmental Total Governmental a� $ 859,158 $ $ 1,131,683 $ 6,839,095 1,912,250 2,534,783 15,868,510 91,022 1,090,596 - 175,103 Ln - 867,708 3,686,509 CM 1,038 3,769 2,657 81,288 - - - 80,202 - 51,790 808,729 46,984 7,698 289,643 - - - 147,760 5,080 138,535 - 90,169 145,764 2 CL 4,364,941 3,929,937 42,807,499 - 6,890,205 2,454,729 22,569,697 co $ 2,819,430 $ 11,258,915 $ 11,077,087 $ 94,819,099 $ $ - $ 169,962 $ 6,602,987 Ln - 2,409,230 CM 125,894 1,072,406 U) 216,385 216,385 X - 98 3,797,657 U) 3,226,239 3,226,239 - - 118,833 3,226,239 512,339 17,443,737 - - 802,771 4- - 175,103 31,048 31,048 - 149,789 31,048 1,158,711 (Continued) �> 21 Packet Pg. 186 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Balance Sheet Governmental Funds September 30, 2015 0 General Capital General Debt Parks and Recreation General Fund Projects Service Development Fund Balance Nonspendable: Inventories 74,558 - - 15,611 LL Prepaids 120,951 1,945 4,976 5,583 _ Advances 145,764 - - - Restricted: Ln Municipal court technology&security 551,593 Franchise peg fees 11,929 - Record preservation fee 4,000 Parks and recreation development - 1,943,056 Crime control district - - LL Debt service 1,178,244 Grants - Promotional&economic development Public safety Capital projects(bond funded) 2 , , , Committed: Donations - - Drainage utility Assigned: LL Savings incentive program 250,360 Ln Retirement stabilization 250,000 - cm Recreation centre - - 1,323,690 U) Capital projects - 17,274,931 - Purchases on order 428,732 - 309,554 U) Unassigned 9,457,571 - - - Total fund balance(deficit) 11,295,458 38,643,557 1,183,220 3,708,610 Total liabilities,deferred inflows and fund balance $ 17,206,327 $ 47,339,317 $ 1,183,220 $ 3,934,803 2 4- The notes to the financial statements are an integral part of this statement. C) 22 Packet Pg. 187 F.1.a 0 Tax Increment Other Gas Development Finance District#2 Governmental Total Governmental a� S - 90,169 5,080 138,535 _ - 145,764 Ln 551,593 CM 11,929 4,000 - 1,943,056 1,576,555 1,576,555 - 2,273,036 3,451,280 65,501 65,501 1,375,767 1,375,767 - 951,328 951,328 11,258,915 2,553,735 35,290,447 CL 595,802 595,802 Co 969,878 969,878 - 250,360 Ln 250,000 CM 1,323,690 U) - 17,274,931 X 167,018 905,304 (406,809) - 9,050,762 (406,809) 11,258,915 10,533,700 76,216,651 $ 2,819,430 $ 11,258,915 $ 11,077,087 $ 94,819,099 2 4- 0 C) 23 Packet Pg. 188 0 a� S Ln CD 2A 4- 0 r_ 0 m r_ 4) U) CL to Ln CD C) U) m x 4- 0 C) This page intentionally left blank. 24 Packet Pg. 189 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position GOVERNMENTALFUNDS September 30, 2015 0 Total fund balances--governmental funds $ 76,216,651 a� Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities resources (excluding internal service capital assets) are not financial resources and, therefore, are not reported as net position in governmental funds. 304,341,105 Ln cm Certain litigation liabilities are not due and payable in the current period and, therefore, are not reported as liabilities in the funds. (1,465,000) Certain receivables are not available to pay current-period expenditures and, therefore, are reported as unavailable revenue in the funds. 1,200,753 0 Internal service funds are used by the City's management for building and vehicle support services, self insurance, and information services. The assets and liabilities of the internal service funds, net of amounts included in business type activities, are included with governmental activities in the Statement of Net Position but are not included at the fund level. 9,342,280 CL Long-term liabilities and related deferred inflows and outflows, including bonds payable, accrued interest payable, compensated absences, other post employment benefits, and net pension liability, are not due and payable in the current period and, therefore, are not reported as liabilities in the funds. (159,194,422) Ln cm Total net position--governmental activities $ 230,441,367 U) X The notes to the financial statements are an integral part of this statement. See note II A for additional information on reconciliation calculations. 4- 0 C) 25 Packet Pg. 190 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Statement of Revenues, Expenditures,and Changes in Fund Balance Governmental Funds Year Ended September 30,2015 Parks and General Capital General Debt Recreation General Fund Projects Service Development REVENUES Taxes $ 27,866,270 $ $ 8,840,000 $ 4,648,841 License and permits 1,520,086 - - Charges for services 2,180,587 6,020 2,849,205 Gas utility leases and royalties - - - LL Fines 2,222,995 Civil citations - Contributions 1,575 - 36,035 Special assessments - 12,095 - Investment income(loss) 120,671 168,879 14,598 19,896 Intergovernmental 2,126,982 847,854 82,853 410,690 Forfeitures - - - - Miscellaneous 126,766 16,665 119,818 Total revenues 36,165,932 1,034,848 8,954,116 8,084,485 U) EXPENDITURES 4- General government 9,008,730 300 - - Public safety 24,058,146 - - Culture and recreation 3,569,492 5,703,671 Public works 2,991,803 U) Capital outlay: CL General government 13,856 50,661,589 Public safety 31,330 23,856 - Culture and recreation 2,450 413,423 709,081 Public works - 3,548,899 - - Debt service: LL Principal retirement - 7,407,643 0 Ln Interest and fiscal charges - - 3,788,499 - Total expenditures 39,675,807 54,648,067 11,196,142 6,412,752 U) Excess(deficiency)of revenues M over expenditures (3,509,875) (53,613,219) (2,242,026) 1,671,733 OTHER FINANCING SOURCES(USES) Issuance of debt 22,215,000 - - Issuance of refunding of debt - 5,648,056 Premium on issuance of debt 3,003,059 262,887 Payment to refunded bond escrow agent - - (5,648,056) 2 Proceeds from sale of assets 11,422 119,283 - 4,771 Transfers in 4,316,850 5,958,511 1,379,866 564,481 0 Transfers out (3,331,167) (107) - (1,275,894) Total other financing sources(uses) 997,105 31,295,746 11642,753 (706,642) Net change in fund balance(deficit) (2,512,770) (22,317,473) (599,273) 965,091 Fund balance-beginning of year 13,808,228 60,961,030 1,782,493 2,743,519 Fund balance(deficit)-end of the year $ 11,295,458 $ 38,643,557 $ 1,183,220 $ 3,708,610 The notes to the financial statements are an integral part of this statement. 26 Packet Pg. 191 F.1.a Gas Tax Increment Other Total Development Finance District#2 Governmental Governmental $ $ $ 8,186,058 $ 49,541,169 - 1,520,086 8,200 860,836 5,904,848 664,788 - 664,788 S U- - - 2,222,995 1,226,567 1,226,567 240,362 277,972 - - 12,095 Ln 12,398 65,671 35,556 437,669 - - 836,869 4,305,248 67,598 67,598 - - 2 263,251 685,386 65,671 11,453,848 66,444,286 U- 4- 290,206 9,299,236 0 r_ 5,992,237 30,050,383 2 261,539 9,534,702 33,019 3,024,822 U) 2 CL 57,693 - 50,733,138 - 358,426 413,612 00 9,627 1,134,581 788 3,549,687 LL 2,591,733 9,999,376 Ln - 718,411 4,506,910 57,693 10,255,986 122,246,447 C14 U) M X 627,693 65,671 1,197,862 (55,802,161) - - - 22,215,000 4,768,520 10,416,576 - 3,265,946 (4,768,520) (10,416,576) 2 1,081 136,557 117,743 12,337,451 0 (20,000) (1,524,210) (6,151,378) (20,000) - (1,405,386) 31,803,576 607,693 65,671 (207,524) (23,998,585) (1,014,502) 11,193,244 10,741,224 100,215,236 $ (406,809) $ 11,258,915 $ 10,533,700 $ 76,216,651 27 Packet Pg. 192 0 a� S Ln CD 2A 4- 0 r_ 0 m r_ 4) U) CL to Ln CD C) U) m x 4- 0 C) This page intentionally left blank. 28 Packet Pg. 193 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of Governmental Funds to the Statement of Activities Year Ended September 30, 2015 0 Net change in fund balance--total governmental funds $ (23,998,585) a� Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays Ln exceeded depreciation in the current period. 44,093,189 cm The net effect of various transactions involving capital assets (i.e. sales, trade-ins, and donations)is to decrease net position. 13,286 2 Certain deferred inflows of resources were earned in prior year but not yet available for fund level activity. This decrease is due to the deferred inflows becoming available in current year. (337,604) Certain long-term liabilities are accrued at the government-wide level but not at the fund level. The current year change in those liabilities is reported as expense in U) the statement of activities. Expenses recorded for accrual of interest and CL amortization expense are included in this category. (678,228) Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long- term liabilities in the statement of net position. This is the difference between repayments Ln and proceeds received. (15,562,095) cm Internal service funds are used by management to charge the costs of certain activities, such as insurance and fleet maintenance, to individual funds. The net revenue 2 (expense)of certain internal service funds is reported with governmental activities (exclusive U) of capital assets and debt). (1,556,984) Change in net position of governmental activities $ 1,972,979 4- The notes to the financial statements are an integral part of this statement. See note II B for additional information on reconciliation calculations. 29 Packet Pg. 194 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Statement of Net Position PROPRIETARY FUNDS September 30,2015 Governmental Enterprise Funds Activities- Utility Aquatic Park Golf Total Enterprise Internal Service ASSETS Current Cash and cash equivalents $ 1,038,719 $ 817,063 $ 349,137 $ 2,204,919 $ 2,298,845 Investments 8,163,218 1,327,841 322,355 9,813,414 5,375,414 Accounts receivable,net of allowance: LL Billed 1,835,634 - - 1,835,634 - Unbilled 2,481,600 - - 2,481,600 Other 29,420 254,388 18,328 302,136 24,481 Interest receivable 16,913 2,868 322 20,103 14,114 Ln Intergovernmental receivable 701,546 - - 701,546 - Prepaid items 22,368 5,818 14,177 42,363 353,346 Due from other funds 34,208 - - 34,208 - Inventories,atcost 212,203 21,930 69,386 303,519 121,511 Total current assets 14,535,829 2,429,908 773,705 17,739,442 8,187,711 0 2A Noncurrent LL 4- Restricted assets Cash and cash equivalents 8,422,547 - 173,196 8,595,743 1,686,309 Investments 2,467,233 250,299 - 2,717,532 3,414,794 Total restricted cash and cash equivalents 10,889,780 250,299 173,196 11,313,275 5,101,103 Advances to other funds 3,396,102 - - 3,396,102 U) Capital assets,at cost CL Land 75,366 745,771 1,758,000 2,579,137 - Building and improvements 1,136,327 2,465,964 802,762 4,405,053 135,455 Other improvements - 19,258,512 5,290,587 24,549,099 1,041,947 Utility plant in service 105,457,128 - - 105,457,128 - Machinery andequipment 2,014,935 808,109 1,594,414 4,417,458 9,522,083 < Construction in progress 1,379,618 160,516 - 1,540,134 Accumulated depreciation (57,306,757) (10,487,070) (5,912,207) (73,706,034) (6,759,883 Net capital assets 52,756,617 12,951,802 3,533,556 69,241,975 3,939,602 Total noncurrent assets 67,042,499 13,202,101 3,706,752 83,951,352 9,040,705 Total assets 81,578,328 15,632,009 4,480,457 101,690,794 17,228,416 U) DEFERRED OUTFLOWS OF RESOURCES Deferred loss on refunding 6,642 47,939 4,400 58,981 - Pension contributions 373,862 62,533 - 436,395 295,677 ig Pension differences-earnings 179,142 26,788 - 205,930 134,683 Total deferred outflows of resources 559,646 137,260 4,400 701,306 430,360 02 LIABILITIES Current Accounts payable and accrued expenses 3,146,744 64,589 120,233 3,331,566 1,553,310 Other current liabilities 93,112 5,409 28,472 126,993 14,335 Compensated absences 40,964 11,299 - 52,263 35,729 Unearned revenue - 12,300 65,112 77,412 900 Due to other funds - - 181,968 181,968 - Accrued interest payable 37,066 25,355 2,883 65,304 Bonds payable 780,000 501,082 90,000 1,371,082 Capital lease payable - - 77,502 77,502 - Total current liabilities 4,097,886 620,034 566,170 5,284,090 1,604,274 30 Packet Pg. 195 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Statement of Net Position PROPRIETARY FUNDS September 30,2015 Governmental Enterprise Funds Activities- Utility Aquatic Park Golf Total Enterprise Internal Service Noncurrent Customer deposits 2,570,866 - - 2,570,866 Bonds payable 8,927,083 4,769,357 614,363 14,310,803 TO a� Capital lease payable - - 85,602 85,602 Compensated absences 258,225 69,812 - 328,037 223,282 LL Intergovernmental payables 969,286 - - 969,286 - Advances from other funds - - 315,627 315,627 Other post employment benefits obligation 1,049,378 167,188 - 1,216,566 814,777 Net pension liability 2,030,152 339,079 - 2,369,231 1,604,503 Ln Total noncurrent liabilities 15,804,990 5,345,436 1,015,592 22,166,018 21642,562 Total liabilities 19,902,876 5,965,470 1,581,762 27,450,108 4,246,836 DEFERRED INFLOWS OF RESOURCES Deferred gain on refunding - 35,000 - 35,000 - Pensions-expected/actual 146,117 21,849 167,966 109,853 2A Total deferred inflows of resources 146,117 56,849 - 202,966 109,853 L®LL 4— NET POSITION Net investment in capital assets 46,730,864 7,668,947 2,935,967 57,335,778 3,947,451 Impact fees restricted for construction 4,153,891 - - 4,153,891 - Unrestricted(deficit) 11,204,226 2,078,003 (32,872) 13,249,357 9,354,636 Total net position $ 62,088,981 $ 9,746,950 $ 2,903,095 $ 74,739,026 $ 13,302,087 CL Reconciliation to business-type activities: Some amounts reported for business-type activities in the Statement of Net Position are different because certain internal balances are included with business-type activities 3,959,807 Net Position of business-type activities $ 78,698,833 The notes to the financial statements are an integral part of this statement. LL Ln CM C) M M X 4— 0 C) 31 Packet Pg. 196 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Statement of Revenues, Expenses,and Changes in Net Position PROPRIETARY FUNDS Year Ended September 30,2015 Governmental Enterprise Funds Activities- Utility Aquatic Park Golf Total Enterprise Internal Service OPERATING REVENUES Charges for services: Water and sewer service $ 28,742,666 $ $ $ 28,742,666 $ Service charges 920,165 920,165 T3 Inspection fees 101,472 101,472 Golf course fees and charges - 2,333,795 2,333,795 S Aquatic park admissions and services - 4,190,688 - 4,190,688 - Other intergovernmental 60,439 - 60,439 14,902 a Risk management - - 9,753,876 Facilities and fleet management 6,169,249 Information systems management - - - - 2,674,154 Ln Miscellaneous revenues 2,098 47,046 1,428 50,572 567,830 Total operating revenues 29,826,840 4,237,734 2,335,223 36,399,797 19,180,011 N OPERATING EXPENSES Claims - - - - 9,520,100 Contractual services 1,752,357 996,547 2,748,904 1,881,599 Water purchases 10,279,601 - 10,279,601 - A Wastewater treatment services 4,880,490 - 4,880,490 - LL Personnel services 5,104,575 1,637,891 - 6,742,466 3,621,763 - Golf course sales and service - - 1,963,074 1,963,074 - C: Repairs and maintenance 4,252,177 145,604 - 4,397,781 1,627,342 Supplies 305,403 604,551 - 909,954 1,121,505 Depreciation 3,355,476 773,895 411,449 4,540,820 882,949 4) Total operating expenses 29,930,079 4,158,488 2,374,523 36,463,090 18,655,258 i Operating income (loss) (103,239) 79,246 (39,300) (63,293) 524,753 CIL NONOPERATING REVENUES(EXPENSES) Investment income 104,248 13,550 1,770 119,568 78,951 Interest and fiscal charges (298,686) (196,164) (19,609) (514,459) - Other income(expense) 19,546 - 2,950 22,496 - Gain on disposal of assets 9,579 2,977 - 12,556 51,564 LL Total nonoperating revenues(expenses) (165,313) (179,637) (14,889) (359,839) 130,515 d3 Income(loss)before transfers (268,552) (100,391) (54,189) (423,132) 655,268 Ln TRANSFERS Q Transfers in 323,425 U) Transfers out (3,954,888) (228,519) (4,183,407) (2,326,091) X Total transfers-net (3,954,888) (228,519) (4,183,407) (2,002,666) Change in net position (4,223,440) (328,910) (54,189) (4,606,539) (1,347,398) Net position-beginning of year(as previously reported) 67,583,155 10,287,801 2,957,284 80,828,240 15,653,132 Adjustment to beginning net position, accounting standard implementation (1,270,734) (211,941) - (1,482,675) (1,003,647) Net position-beginning of year(as restated) 66,312,421 10,075,860 2,957,284 79,345,565 14,649,485 Net position-end of year $ 62,088,981 $ 9,746,950 $ 2,903,095 $ 74,739,026 $ 13,302,087 2 p� Reconciliation of Change in Net Position-Business-type Activities: Change in net position of enterprise funds (4,606,539) Some amounts reported for business-type activities in the Statement of Activities are different because the net revenue of certain internal revenue service funds is reported with business-type Cj activities 209,586 Change in net position of business-type activities $ (4,396,953) The notes to the financial statements are an integral part of this statement. 32 Packet Pg. 197 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Statement of Cash Flows PROPRIETARY FUNDS Year Ended September 30,2015 Governmental Enterprise Funds Activities- Internal Utility Aquatic Park Golf Totals Service Cash flows from operating activities: Receipts from customers $ 29,899,662 $ 4,193,513 $ 2,319,817 $ 36,412,992 $ - Receipts from interfund services provided - - - - 18,597,279 Other operating revenue(expense) (82,190) 49,840 (4,860) (37,210) 606,451 eY1 Payments to suppliers (20,743,938) (1,796,868) (1,992,968) (24,533,774) (13,828,908) Payments to employees (3,844,656) (1,409,773) - (5,254,429) (3,571,056) Net cash provided by operating activities 5,228,878 1,036,712 321,989 6,587,579 1,803,766 S U- Cash flows from noncapital financing activities: Transfers from other funds - - - - 323,425 Transfers to other funds (3,954,888) (228,519) - (4,183,407) (2,326,091) Advances to other funds (147,760) (147,760) Net cash provided by(used for)noncapital and Ln related financing activities (3,954,888) (228,519) (147,760) (4,331,167) (2,002,666) CM Cash flows from capital and related financing activities: Insurance recovery proceeds 19,546 2,950 22,496 Proceeds from capital debt - - - Acquisition and construction of capital assets (2,534,463) (160,517) (17,323) (2,712,303) (708,240) Principal paid on capital debt (782,263) (534,705) (177,481) (1,494,449) LA Interest paid on capital debt (1,568,373) (453,652) (23,554) (2,045,579) - - Proceeds from sale of capital assets 9,579 2,977 12,556 51,564 0 Net cash used for capital and related financing activities (4,855,974) (1,145,897) (215,408) (6,217,279) (656,676) Cash flows from investing activities: 4) Purchase of investments (4,837,996) (492,095) (238,022) (5,568,113) (4,423,580) U) Proceeds from the sale of investments 6,146,766 886,464 89,262 7,122,492 4,632,390 CIL Interest and dividends received 106,581 13,597 1,807 121,985 79,802 Net cash provided by investing activities 1,415,351 407,966 (146,953) 1,676,364 288,612 Net increase(decrease)in cash and cash equivalents (2,166,633) 70,262 (188,132) (2,284,503) (566,964) .� Cash and cash equivalents beginning of year 11,627,899 997,100 710,465 13,335,464 4,552,118 � Cash and cash equivalents end of year $ 9,461,266 $ 1,067,362 $ 522,333 $ 11,050,961 $ 3,985,154 Reconciliation of operating income(loss)to net cash Ln provided by operating activities: CM Operating income(loss) $ (103,239) $ 79,246 $ (39,300) $ (63,293) $ 524,753 U) Adjustments to reconcile operating income(loss)to net X cash provided by operating activities: 9 Depreciation expense 3,355,476 773,895 411,449 4,540,820 882,949 T Other expense - - - - (3,351) (Increase)decrease in accounts receivable 135,359 2,825 (13,978) 124,206 22,819 (Increase)decrease in intergovernmental receivables (221,655) - (221,655) - (Increase)decrease in inventories 85,956 (724) (3,947) 81,285 4,932 E (Increase)decrease in prepaid items (3,249) (3,451) 3,720 (2,980) 31,803 Increase(decrease)in accounts payable 446,013 (68,995) (67,896) 309,122 288,254 Z Increase(decrease)in customer deposits payable 117,093 - 117,093 - - Increase(decrease)in compensating absences (55,996) 8,932 (47,064) 8,902 Increase(decrease)in other post employment benefits 95,567 14,780 110,347 73,998 Increase(decrease)in intergovernmental payable (40,165) - - (40,165) - Increase(decrease)in other liabilities 93,112 1,000 28,472 122,584 Increase(decrease)in net pension liability 1,220,348 204,406 - 1,424,754 (37,881) Increase(decrease)in unearned revenues - 2,794 (6,288) (3,494) 900 g3 Increase(decrease)in accrued liabilities 104,258 22,004 9,757 136,019 5,688 Total adjustments 5,332,117 957,466 361,289 6,650,872 1,279,013 Net cash provided by operating activities $ 5,228,878 $ 1,036,712 $ 321,989 $ 6,587,579 $ 1,803,766 Noncash from capital and related financing activities: Capitalized interest 13,109 - - 13,109 - The notes to the financial statements are an integral part of this statement. 33 Packet Pg. 198 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Statement of Net Position FIDUCIARY FUNDS September 30, 2015 OPEB Trust ASSETS Investments, at fair value Mutual funds $ 1,316,394 Total assets 1,316,394 NET POSITION Restricted for other post employment benefits 1,316,394 Total net position $ 1,316,394 Ln The notes to the financial statements are an integral part of this statement. cm 2 0 r_ U) 2 CL Ln cm C) U) M x 4- 0 C) 34 Packet Pg. 199 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Statement of Changes in Fiduciary Net Position FIDUCIARY FUNDS For the Year Ended September 30, 2015 0 OPEB Trust ADDITIONS 20 Contributions: Employer $ 1,688,391 Investment earnings (loss) (6,306) Total additions 1,682,085 DEDUCTIONS Benefit payments 1,588,391 Ln Investment expense 7,063 cm Total deductions 1,595,454 Change in net position 86,631 Net position - beginning 1,229,763 Net position -ending $ 1,316,394 0 r_ The notes to the financial statements are an integral part of this statement. U) 2 CL Ln cm C) U) M X 4- 0 C) 35 Packet Pg. 200 0 a� S Ln CD 2A 4- 0 r_ 0 m r_ 4) U) CL to Ln CD C) U) m x 4- 0 C) This page intentionally left blank. 36 Packet Pg. 201 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Notes to Basic Financial Statements September 30, 2015 Page Note I Summary of Significant Accounting Policies A. Reporting entity 39 B. Government-wide and fund financial statements 39 C. Measurement focus, basis of accounting, and financial statement presentation 40 D. Assets, liabilities, deferred outflows/inflows of resources and net position or fund balance Deposits and investments 41 Receivables and payables 42 Inventories and prepaid items 42 Ln Restricted assets 43 cm Capital assets 43 Compensated absences 44 Long-term obligations 44 Deferred outflow/inflows of resources 44 Fund Balance 45 2 0 Note II Reconciliation of Government-Wide and Governmental Fund Financial Statements 46 A. Balance sheet reconciliation 46 B. Statement of revenues, expenditures, and changes in fund balance reconciliation 48 CL Note III Detailed Notes on All Funds 49 A. Deposits and investments 49 Deposits 49 Investments 50 Interest rate risk 51 Custodial credit risk 51 Ln Credit risk 52 OPEB Trust Fund Investments 52 cm Interest rate risk 52 U) Custodial credit risk 52 Credit risk 52 12 2 B. Receivables 53 Unearned revenue 53 C. Capital assets 54 Construction commitments 55 D. Interfund receivables, payables, and transfers 55 2 Governmental 57 Proprietary 58 E. Long-term debt 58 General obligation bonds 58 Certificates of obligation 59 Capital leases 59 Refunding of Debt 60 Changes in long-term liabilities 60 37 Packet Pg. 202 F.1.a Note IV Other Information 61 A. Risk management 61 B. Contingent liabilities 61 C. Postemployment benefits 61 Deferred Compensation Plan 61 Retiree Healthcare Plan 62 D. Employee retirement systems and pension plans 64 Plan description 64 Benefits Provided 64 Contribution 65 Net Pension Liability 65 Discount Rate 66 Changes in Net Pension Liability 67 Pension Plan Fiduciary Net Position 67 Pension Expense and Deferred Outflows of Resources and Ln Deferred Inflows of Resources Related to Pensions 67 CM E. New financial reporting requirements 68 F. Implementation of future GASB Statements 69 2 0 r_ U) 2 CL Ln CM C) U) M X 4- 0 C) 38 Packet Pg. 203 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of North Richland Hills, Texas (the "City") Home Rule Charter was adopted by the voters at an election held on November 3, 1964. The City operates under a Council-Manager form of government. The City provides a full range of services including police and fire protection; municipal court operations; the construction and maintenance of streets and infrastructure; parks, library, and recreational activities including tennis center operations; neighborhood services activities; planning and inspections; and the operations of a water and wastewater system, a golf course, and a public water park. A private contractor, through a franchise agreement, provides solid waste collection and disposal services for the City. The accounting policies of the City conform to accounting principles generally accepted in the United States of America ("GAAP") as applicable to governmental units. The Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for establishing governmental accounting and financial Ln reporting principles. The more significant accounting policies of the City are described below. cm A. Reporting Entity As required by GAAP, these basic financial statements present the primary government and its component units, entities for which the government is considered to be financially accountable. The blended component units, although legally separate entities, are, in substance, part of the primary government's operations. As such, data from these units is combined with data of the primary government. Discretely presented component units are entities that are legally separate from the City, but for which the City is financially accountable or whose relationships with the City are such that exclusion would be misleading or incomplete. U) Blended Component Units - The North Richland Hills Parks and Recreation Facilities Development CL Corporation ("PRD") is used to account for the accumulation of resources to build and improve City parks and recreational facilities and fund economic development activities. The North Richland Hills Crime Control and Prevention District ("CCD") is used to account for the accumulation and use of half- cent sales tax proceeds dedicated for crime reduction programs. The PRD and CCD are reported as special revenue funds of the primary government. The Boards of Directors of both component units are substantially the same as the City Council. Ln Tax Increment Financing District No. 1 ("TIF #1") was created to fund drainage improvements that would alleviate flooding problems, reduce property damage associated with the flooding, and stimulate cm development within the zone of TIF #1. In 2008, TIF #1 was expanded to provide funding for intersection improvements and the burial of utility lines to enhance economic revitalization in the 4) area. Tax Increment Financing District #2 ("TIF #2") was created to provide funding for public U) improvements that would benefit the participants in and citizens of TIF #2. These TIF's meet the criteria for blending as the City Council and TIF Boards are substantially the same. In addition, although other entities are involved in the TIF, the primary financial benefit or burden relationship is between the City and the TIF's, and management of the City has day-to-day operational responsibility for the activities of the TI F. 2 B. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its blended component units. For the most part, the effect of interfund activity has been eliminated from these statements. However, interfund services provided and used are not eliminated in the consolidation process. Governmental activities, which normally are supported by taxes and a, intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on user fees and charges for support. 39 Packet Pg. 204 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment; and grants and contributions that are designated to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. a� Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Ln The government-wide financial statements are reported using the economic resources measurement cm focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in 7Z the year for which they are levied. Grants and similar items are recognized as revenue as soon as all U) eligibility requirements imposed by the provider have been met. iz 0 Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is Ln received by the City. cm The City reports the following major governmental funds: The General Fund is the City's primary operating fund. It accounts for all financial resources traditionally associated with governments which are not required to be accounted for in another fund. Major functions financed by the General Fund include general government, public safety, culture and recreation, and public works. Financing is provided from taxes (primarily property, sales, and franchise), licenses and permits, fines, and investment income. The General Capital Projects Fund is used to account for financial resources used for the acquisition and construction of major street, drainage, and municipal facilities capital assets. 0 The General Debt Service Fund accounts for the accumulation of resources for the payment of principal, interest, and related charges on long-term general obligation debt of governmental funds. Financing is provided primarily by a specific annual property tax levy. The Parks and Recreation Facilities Development Fund accounts for the accumulation and use of resources to build and improve City parks and recreation facilities as well as economic development projects. 40 Packet Pg. 205 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 The Gas Development Fund accounts for the accumulation and expenditures of resources from gas drilling and exploration on City owned property. The Tax Increment Financing District #2 provides funding for public improvements that would benefit the participants in and citizens of TIF#2 as well as others in the Metroplex area. The City reports the following proprietary funds: a� The Utility Fund (a major fund) accounts for the distribution of water, transportation of wastewater, and solid waste removal services provided to the residents of the City. All activities necessary to provide such services are accounted for in the fund, including, but not limited to, administration, operations, maintenance, financing and debt service, and billing and collections. The Aquatic Park Fund (a major fund) accounts for the operation of NRH2O, the City's public water Ln park. All activities necessary to operate the park are accounted for in the fund, including, but not limited to, administration, park operations, park maintenance, and financing and debt service. CM The Golf Course Fund accounts for the operations of Iron Horse Golf Course, the City's public golf course. All activities necessary to operate the course are accounted for in the fund, including, but not limited to, administration, operations, course maintenance, and financing and debt service. The Golf Course in the only non-major proprietary fund. LL 4- 0 Internal Service Funds account for building maintenance services, fleet management, computer and telephone service, as well as insurance coverage provided to other departments of the City, on a cost reimbursement basis. The City also reports one fiduciary fund. The OPEB Trust Fund accounts for the activities of the long term funding of the City's other post employment benefits provided. These funds are contributed by the CL City on an annual basis to help offset future costs and outflows for post employment benefits to payments. co Amounts reported as program revenues include 1) charges to customers or applicants for goods, LL services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general Ln revenues rather than as program revenues. Likewise, general revenues include all taxes. CM Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in X connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds and of the internal service funds are charges to customers for sales and T services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on ig capital assets. All revenues and expenses not meeting the definition are reported as non-operating M revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. C) D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position or Fund Balance Deposits and investments Deposits consist of cash and cash equivalents. Substantially all operating deposits and investments are maintained in pooled deposits and investment accounts. Interest income relating to pooled 41 Packet Pg. 206 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 deposits and investments is allocated monthly to the participating individual funds based on each fund's pro-rata share of total pooled deposits and investments. Investments consist of(1) investments in public fund investment pools, (2) short-term investments that mature in 12 months or less from the time of purchase and (3) investments that mature in greater than 12 months from the time of purchase. Other than investment pools, most of the City's investments are long-term (i.e., at the time of purchase, the maturity equals or exceeds one year) and, accordingly, the investments are carried at fair value in accordance with GASB Statement No. 31, "Accounting and Financial Reporting for Certain Investments and for External Investment Pools." Legal provisions generally permit the City to invest in certificates of deposit, repurchase agreements, public funds investment pools, direct obligations of the United States of America or its subdivisions, and Ln state and local government securities. During the year ended September 30, 2015, the City did not own any types of securities other than those permitted by statute. CM For the purposes of presenting the statement of cash flows for Proprietary Funds, cash and cash equivalents are defined as cash and the funds' investment in the City's pooled accounts which provide cash-equivalent liquidity (Note III). Receivables and payables r_ Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans)or"advances to/from other funds" (i.e., the non-current portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Advances between funds, as reported in the fund financial statements, are offset by a fund balance co reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. All trade and property tax receivables are shown net of an allowance for uncollectibles. Ln The City's property tax is levied each October 1 on the assessed value listed as of the prior January 1 CM for all real property and certain personal property located in the City. Tax liens attach as of February 1. Taxes are due upon receipt of the tax bill. X Property taxes are limited by the Texas Constitution to $2.50 per $100 of assessed valuation and by T City Charter to $1.50 per $100 assessed valuation. The combined tax rate to finance general governmental service and debt service for the year ended September 30, 2015 was $.61 per $100 of assessed valuation. Inventories and prepaid items All inventories are valued at cost using the first-in/first-out ("FIFO") method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Inventories are offset by a fund balance reserve account in applicable governmental funds to indicate C3 the inventory values are not available for appropriation and are not expendable financial resources. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. 42 Packet Pg. 207 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 Restricted assets Certain resources set aside for the repayment of outstanding City debt are classified as restricted assets on the balance sheet because their use is limited. The "debt service reserve funds" are used to segregate resources accumulated for outstanding debt. The "construction funds" account includes, but is not limited to, unspent bond proceeds that are limited as to use for financing the acquisition or construction of capital assets. a� In the Utility Fund, impact fees are a restriction imposed by the City's governing body for the purpose of collection of funds from developers for specific utility infrastructure improvement projects. State of Texas Statutes grant this authority to the City Council which upon their approval is valid for a five year period. Every five years, the impact fee plan expires and a new program must be developed and submitted to Council for approval. Ln Also designated in the Utility Fund are customer deposits. This restriction is contractually supported. The City is not allowed to use the funds unless it is to refund back to the customer for good standing CM account history or that they default upon the terms of the agreement. Assets have also been restricted by management for the following: 2 The Crime Control and Prevention District (Special Revenue) Fund contains assets restricted for transition. The "transition" term is used to identify funds that are covered by Texas Sales Tax laws and has been restricted to offset future unforeseen circumstances (i.e. dissolution of the fund due to citizens vote to end operations of the district). If indeed the half-cent sales tax funding CCD activities is discontinued, the restricted assets will be used to fund those activities until an alternate funding source can be identified (i.e., during the transition period). 2 The Information Technology (Internal Service) Fund contains assets used for future system improvements. The intended purpose is to fund major computer system software and hardware system to replacements and upgrades. co The Facilities and Construction Services and Fleet Services (Internal Service) Funds contain assets used for building and equipment maintenance and replacement. The building reserve is used to accumulate funds for the implementation of the multi-year plan. Equipment reserve is used to 0 Ln accumulate funds for the replacement of vehicles and heavy equipment. CM The Self-Insurance (Internal Service) Fund contains assets used for future insurance claims. Funds will be accumulated until needed to cover these costs of excessive claims or until management has X determined sufficient funds have been accumulated to cover future claims. Future claims of the Self-Insurance Internal Service Fund are funds set aside and obligated for medical, dental, prescription, or other risk payables that could arise in future fiscal periods. This fund has a very proactive approach to plan for future claims and ensure that funding is available to pay ig when and if the need occurs. Capital assets 4- 0 Capital assets, including property, plant, equipment, and infrastructure assets (e.g., roads, bridges, drainage facilities, parks and related improvements, and similar items), are reported in the applicable C3 governmental or business-type activities columns in the government-wide financial statements and in the proprietary fund level financial statements. Capital assets are defined by the City as assets with an initial, individual cost of at least $5,000 and an estimated useful life in excess of one year. Assets purchased or constructed are recorded at historical cost when available or estimated historical cost if actual cost is unavailable. Donated capital assets are recorded at estimated fair value at the date of donation. 43 Packet Pg. 208 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Capital assets of the primary government are capitalized at the following thresholds and are depreciated using the straight-line method over the following estimated useful lives: Capitalization Asset Category Useful Life Threshold Land $ 100,000 Buildings and improvements 30 years 100,000 Other improvements 30 years 100,000 Water, sewer system and other infrastructure 33 years 100,000 Ln Furniture and fixtures, and certain cm machinery and equipment 10 years 5,000 Firetrucks and ambulances 20 years 25,000 Other machinery and equipment including vehicles 3-6 years 5,000-25,000 2 4- 0 *Range is due to different machinery and equipment having different levels of capitalization thresholds within fiscal policy Compensated absences U) 2 City employees are granted vacation leave in varying amounts depending on length of service. Sick CL leave is also granted to employees after six months of service. In the event of termination after one or more years of service, an employee is paid for all accumulated unused vacation. No reimbursement is tom' co made for unused accumulated sick leave upon termination of employment, except upon retirement. Upon retirement, an employee may convert up to six weeks of accrued sick leave to vacation. Sick pay is recorded when taken. All vacation pay is accrued as vested and included in accrued liabilities in the LL government-wide and proprietary fund financial statements. Accrued vacation pay, including converted C3 sick leave, that is expected to be liquidated within one year, is reported as a short-term liability. The Ln remainder of the liability is reflected as long-term. cm U) Historically the General Fund has liquidated the majority of compensating absences liability. Long-term obligations U) In the government-wide financial statements and proprietary funds financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund statement of net position. Bond premiums and discounts and losses on bond refundings are deferred and amortized over the life of the related debt using the 2 straight-line method which approximates the interest method. 4- 0 In the fund financial statements, governmental funds recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums Cj received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position and/or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, 44 Packet Pg. 209 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has the following items that qualify for reporting in this category. 0 • Deferred charges on refundings —A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. • Pension contributions after measurement date — These contributions are deferred and recognized in the following fiscal year. • Difference in projected and actual earnings on pension assets — This difference is deferred and amortized over a closed five year period. Ln In addition to liabilities, the statement of financial position and/or balance sheet will sometimes report a cm separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has the following deferred inflows: the difference in expected and actual pension experience is deferred and recognized over the estimated average remaining lives of all members determined as of the measurement date, 2 and deferred gain on refundings. Fund level statements have deferred inflows from the following sources: Ambulance $802,771, property taxes $175,103, grants $31,048 and assessments $149,789. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Fund balance U) Fund balances are reported within one of the fund balance categories list below. 1. Nonspendable, such as fund balances associated with inventories, prepaids, long-term loans and co notes receivable, and property held for resale (unless the proceeds are restricted, committed, or assigned), 2. Restricted fund balance category includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation, Ln 3. Committed fund balance classification includes amounts that can be used only for the specific cm purposes determined by a formal action of the City's Council (the city's highest level of authority), U) 4. Assigned fund balance classification are intended to be identified and authorized for specific purposes by the City's authorized representative by the Council (City Manager) and for other 12 purposes that cannot be classified as restricted or committed, T 5. Unassigned fund balance is the residual classification for the government's general fund and includes all spendable amounts not contained in the other classifications. Committed Fund Balance Policy Fund balances are committed by the City Council under specific resolutions or ordinances which were adopted to restrict the utilization of special revenue sources. The resolutions or ordinances adopted by Council can only be amended or rescinded by an equivalent Council action via resolution or ordinance. C) Fund balance reporting as a result of resolutions and ordinances passed by City Council: • General Donations or contributions to the City that do not have specific goals designated by the donor are committed by council resolution to keep the original general intent for which they were received. • Drainage Utility Fees are to be utilized for the infrastructure or debt service for such infrastructure. 45 Packet Pg. 210 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 Assigned Fund Balance Policy The City's Assigned Fund Balance is under the direction of the City Manager, (as authorized by the City Council). • Savings incentive program represent funds assigned to encourage departments to implement cost savings measures whereby any savings would be accumulated for use at a later date, • Retirement stabilization are funds for anticipated future increases in TMRS funding requirements, • Capital projects are proceeds assigned by management through budget appropriations to fund special capital projects not funded through bond proceeds, • Recreation Centre assignment is net operations for the program for future infrastructure maintenance and operational needs, • Encumbrances are purchases procured in the current fiscal year, but will not be delivered or < services accomplished until the next fiscal year. This assignment of prior year encumbrances Ln insures resources are available to complete the purchases. cm Fund Balance Flow Assumptions Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to 2 calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government's policy to consider restricted fund balance depleted before using any of the components of unrestricted fund balance. Further when the components of unrestricted fund balance can be used for the same purposes, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. Minimum Fund Balance co At the end of each fiscal year, the General Fund should maintain a minimum unassigned fund balance that is no less than 15% of the subsequent year's General Fund Appropriated Expenditure budget. This target amount has been established in order to provide a reasonable level of assurance that the City's day-to-day operations will be able to continue even if circumstances occur where revenues are e' insufficient to cover expenditures. Ln cm II. RECONCILIATION OF GOVERNMENT-WIDE AND GOVERNMENTAL FUND FINANCIAL STATEMENTS U) M X A. Explanation of certain differences between the governmental fund balance sheet and the government- 2 wide statement of net position. U) The governmental fund balance sheet includes a reconciliation between fund balance — total governmental funds and net position — governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that "capital assets used in governmental activities (excluding internal service capital assets) are not financial resources and, therefore, are not reported as assets in governmental funds." The details of the $304,341,105 difference are as follows: Capital assets, net of depreciation (internal service funds excluded) $ 229,453,362 Construction in progress (internal service funds excluded) 74,887,743 Net adjustment to increase fund balance-total governmental funds to arrive at net position -governmental activities $ 304,341,105 46 Packet Pg. 211 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 The second element of that reconciliation explains that "certain litigation liabilities are not due and payable in the current period" are included with governmental activities in the Statement of Net Position but are not included at the fund level." The details of the ($1,465,000)difference are as follows: 0 Litigation payable $ (1,465,000) Net adjustment to increase fund balance -total governmental funds to arrive at net position -governmental activities $ (1,465,000) a� E Another element of that reconciliation explains that"certain receivables are not available to pay current- period expenditures and, therefore, are deferred in the funds." The details of the $1,200,753 difference are as follows: Interest earned but not available within 60 days for Governmental Ln Activities $ 42,042 cm Unavailable revenue 1,158,711 Net adjustment to increase fund balance -total governmental funds to arrive at net position -governmental activities $ 1,200,753 2 4- 0 The fourth element of that reconciliation explains that "the assets and liabilities of the internal service funds are included with governmental activities in the Statement of Net Position but are not included at the fund level." The details of the $9,342,280 difference are as follows: Net position, internal service funds combined $ 13,302,087 Amount allocated to business-type activities (3,959,807) CL Net adjustment to increase fund balance-total governmental funds cam, to arrive at net position -governmental activities $ 9,342,280 co The last element of that reconciliation explains that "long-term liabilities (excluding internal service funds), including bonds payable and related deferred inflows and outflows of resources are not due and Ln payable in the current period and, therefore, are not reported in the funds." The details of the cm $(159,194,422)difference are as follows: U) M X Bonds payable-short-term $ (10,971,021) 2 Bonds payable- long-term (122,488,178) T Deferred gain on refunding (180,389) Deferred loss on refunding 651,014 Accrued interest payable (561,742) Compensated absences (3,020,213) 2 Other post employment benefits obligation (8,734,694) Net pension liability (17,368,153) Deferred difference in projected and actual earnings on pension assets 1,519,639 Deferred pension contributions 3,198,803 Cj Deferred difference in expected and actual experience (1,239,488) Net adjustment to reduce fund balance-total governmental funds to arrive at net position -governmental activities $ (159,194,422) 47 Packet Pg. 212 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and changes in fund balance and the government-wide statement of activities. The governmental fund statement of revenues, expenditures, and changes in fund balance includes reconciliation between net changes in fund balance — total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that "governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense." The details of this $44,093,189 difference are as follows: Capital outlay -assets acquisitions $ 52,798,645 Depreciation expense (8,705,456) Ln Net adjustment to increase net changes in fund balances - CM total governmental funds to arrive at changes in net position of governmental activities $ 44,093,189 2 The next element of that reconciliation explains that "the net effects of various transactions involving capital assets (i.e. sales, trade-ins, and donations) is to decrease net position." The details of this $13,286)difference are as follows: Asset retirements and impairments $ 13,286 Net adjustment to decrease net changes in fund balance - total governmental funds to arrive at changes in net position of governmental activities $ 13,286 The next element of that reconciliation explains that"certain deferred inflows of resources were earned in prior year." The details of this $(337,604)difference are as follows: C) Investment income not available for current financial resources $ (2,556) Ln Revenue that is earned but not received (335,048) CM Net adjustment to decrease net changes in fund balance- total governmental funds to arrive at changes in net position X of governmental activities $ (337,604) U) The next element of that reconciliation explains that "certain long-term liabilities are accrued at the government-wide level but not at the fund level." The details of this $(678,228) difference are as follows: (Excludes Internal Service Funds) Changes in: Accrued interest/interest expense $ 98,975 _ Other post employment benefits (814,268) Net pension liability 427,423 Compensated absences (390,358) E Net adjustment to decrease net changes in fund balance - total governmental funds to arrive at changes in net position of governmental activities $ (678,228) 48 Packet Pg. 213 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 Another element of that reconciliation states that "bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. This is the difference between repayments and proceeds received." The details of this $(15,562,095) difference are as follows: (Excludes Internal Service Funds) Debt issued or incurred: General obligation bonds $ (250,000) Refunding of bonds (10,416,576) Certificates of obligation bonds (21,965,000) Principal repayments: General obligation bonds 9,894,376 Ln General Obligation bonds - refunding 10,416,576 Sales tax revenue bonds 105,000 cm Premium on bond sale (3,265,946) Current year amortization of bond premium, discount, deferred inflows and outflows (gain and loss) (80,525) Net adjustment to decrease net changes in fund balances - 2 total governmental funds to arrive at changes in net position of governmental activities $ (15,562,095) Another element of that reconciliation states that"the net revenue (expense)of internal service funds is reported with governmental activities." The details of the $(1,556,984)difference are as follows: Change in net position - internal service funds combined $ (1,347,398) Income (Expenses) reflected in business-type activities (209,586) Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net position of governmental activities $ (1,556,984) Ln cm III. DETAILED NOTES ON ALL FUNDS X A. Deposits and investments Deposits - The City maintains an entity wide cash and investment pool that is available for use by all funds. Each fund's portion of the pool is displayed on the statement of net position as "Cash, Cash Equivalents and Investments". The investment policy of the City is governed by State statute and a Council adopted City Investment Policy. Major controls stipulated in the Investment Policy include: depository limitations require Federal Deposit Insurance Corporation ("FDIC") insurance or full 100 percent collateralization; depositories are limited to Texas banking institutions; all collateral for repurchase agreements and deposits held by independent third party trustees; all settlement is delivery versus payment; all authorized investments are defined; and diversification guidelines are set as are maximum maturity and maximum weighted average maturity. State statutes require all time and demand deposits to be fully insured or collateralized. At September 30, 2015 the carrying amount of the City's demand deposits were $9,573,037. Accounts with under $250,000 balance of either an interest bearing account or non-interest bearing account are covered by 49 Packet Pg. 214 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 FDIC deposit insurance. The total cash held in demand deposits has been fully collaterized and meets statutes' requirements. As of September 30, 2015, the City's investment pool portfolio (excluding bank deposits) are held by the City's custodian in the City's name under written agreements. The City's custodian is JP Morgan Chase. All security investments are reported at fair value priced by an independent source. The City generally holds all investments to maturity. E The City's investment pool, excluding fiduciary funds, held the following cash, cash equivalents, and investments as of September 30, 2015: Total Ln Cash on hand (petty cash, cashier tills) $ 10,582 Demand Deposit Accounts 9,573,036 cm Investment Pools 54,848,792 US Treasury Notes 40,785,223 U.S. Agencies and Government Sponsored Agencies 18,974,138 Total deposits and investments $ 124,191,771 2 0 r_ Investments - Weighted average maturity ("WAM") of the portfolio by investment type categories reflected in the following table is stated in days. Investment type acronyms displayed in the following table are defined as follows: FHLB — Federal Home Loan Bank, FHLMC — Federal Home Loan Mortgage Corporation, FMDN — Federal National Mortgage Discounted Notes, FNMA — Federal National Mortgage Association, and USTR — U.S. Treasury Notes. The rating agency acronym is defined as follows: S&P — Standard and Poor's Ratings Services, a division of the McGraw-Hill Companies, Inc. Additional information about the rating agency or the significance of the ratings co provided may be obtained from the agency's web site. Legal provisions generally permit the City to invest in certificates of deposit, repurchase agreements, public funds investment pools, direct obligations of the United States of America or its subdivisions, and 0 Ln state and local government securities. Because the City is responsible for the investment portfolio of its blended component units, the City's investment practices and policies disclosed herein apply equally cm to its component units. During the year ended September 30, 2015, the City did not own any types of securities other than those permitted by statute. X The pools in which the City is currently participating seek to maintain a stable $1 net asset value per U) share or unit. Accordingly, the fair value of the City's position in these pools is substantially the same as the market value of the shares in each of the pools. TexPool falls under the purview of the Texas Comptroller of Public Accounts ("Comptroller") who is responsible for oversight of TexPool operations. LOGIC and TexSTAR have established a governing board at least partially comprised of pool participants. TexasTERM is directed by an Advisory Board of experienced local government officials, finance directors and treasurers and is managed by a team of industry leaders that are focused on providing professional investment services to investors. Duties of the governing boards include oversight responsibility. The Comptroller and the governing boards exercise oversight of the pools' activities via daily, weekly, and monthly reporting requirements. Additionally, per the requirements of the Public Funds Investment Act ("PFIA"), all pools will maintain an AAA or equivalent rating from at least one nationally recognized rating agency. The PFIA also requires an annual examination of the financial statements of the pools by an independent certified public accounting firm. 50 Packet Pg. 215 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 The table below states investments at fair value: Rating Investment Type WAM Rating Agency Total Investment pools: _ TexPool 51 AAAm S&P $ 18,151,103 LOGIC 59 AAAm S&P 1,732,154 E TexSTAR 50 AAAm S&P 1,548,863 Texas Term 47 AAAm S&P 33,416,672 Total pools $ 54,848,792 USTR 655 AA+ S&P 40,785,223 Ln Total U.S.Treasuries $ 40,785,223 CM U.S.Agencies and Government Sponsored Entities: FHLB 56 AA+ S&P $ 4,049,393 _ FHLMC 43 AA+ S&P 6,872,498 FMDN 207 AA+ S&P 1,968,224 A LL FNMA 61 AA+ S&P 6,084,023 Total U.S.Agencies &Government Sponsored Entities $ 18,974,138 Total Portfolio $ 114,608,153 U) 2 Interest Rate Risk— Interest rate risk is the potential for a decline in market value due to rising interest rates. In accordance with its formally-adopted investment policy, the City manages its exposure to declines in fair market value by limiting the portfolio's weighted average maturity to a maximum of 730 co days. The City also employs an investment maturity laddering structure to stagger investment maturities at various monthly rungs on the ladder. This laddering structure provides the City with the LL ability to reinvest the proceeds from the maturities in higher-yielding securities given the proceeds are not required to meet immediate cash flow needs. 0 Ln Custodial Credit Risk— Custodial credit risk is the risk that a government will not be able to recover (a) CM deposits if the depository financial institution fails or (b) the value of investment or collateral securities that are in the possession of an outside party if the counterparty to the investment or deposit transaction fails. To minimize such risk, the City requires collateralization of most deposits in excess of coverage, utilizes the delivery vs. payment method for investment purchases, and contracts with a third-party safekeeping agent. Per the terms of its depository agreement, for bank deposits in excess of the coverage provided by the FDIC, the City requires the depository bank to pledge to the City securities (collateral) equal to the a? following percentages, as applicable, to the largest balances the City maintains in the Bank. U.S. Other Maturity of Collateral Treasuries Securities 1 year or less 101% 102% 1 year to 5 years 102% 105% Over 5 years 103% 110% The percentages as shown reflect the requirement based on market value of the pledged securities. The City's depository bank also acts as its safekeeping agent per the terms of the depository contract. City policy dictates that all securities rendered for payment will be sent delivery vs. payment meaning 51 Packet Pg. 216 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 that the funds required for purchase of a security will not be released until the safekeeping agent has received the security purchased in the City's name. No broker holds City funds. The City does not purchase securities from its depository bank or any subsidiary banks of the same bank holding company. Credit Risk— The Credit Risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. In order to minimize credit risk, the City limits investments to those rated as to investment quality of not less than "A" or its equivalent by a nationally recognized rating firm. Diversification of the portfolio is also employed to manage credit risk. The investment policy limits the percentage of the portfolio that may be invested in any specific type of security. Ratings for the City's investments and the percentage of the total portfolio of each investment type held at the end of year can be found on the first table in this section. OPEB Trust Fund Investments - The City has contracted with Public Agency Retirement Services Ln (PARS) for trust administration and Union Bank serves as the trustee for all investments of the OPEB Trust Fund. The OPEB Plan does not have a formal policy for custodial credit risk. As of September cm 30, 2015 all investments are registered in the name of the OPEB Plan's custodian established through a master trust custodial agreement. The OPEB Trust Fund investments are carried at fair value of $1,316,394 as of September 30, 2015. The Trust's funds are invested in a mutual fund that is invested in equity, money market and fixed income mutual funds. The investment strategy of the OPEB Trust 2 Fund is to provide current income with capital appreciation. The credit rating and weighted average maturity is not available for the pool. Interest Rate Risk— Interest rate risk is the potential for a decline in market value due to rising interest rates. In accordance with its formally-adopted investment policy, the Trust committee has chosen to use moderate risk levels. Exposure to market fluctuations can occur, and the investment strategy is U) reviewed annually to insure that exposure to these market fluctuations is appropriate. CL Custodial Credit Risk— Custodial credit risk is the risk that a government will not be able to recover (a) deposits if the depository financial institution fails or (b) the value of investment or collateral securities co that are in the possession of an outside party if the counterparty to the investment or deposit transaction fails. The Trust is not covered by any collaterization agreement or FDIC insurance. LL Credit Risk— The Credit Risk is the risk that an issuer or other counterparty to an investment will not Cn Ln fulfill its obligations. The risk tolerance chosen by the Trust is moderate. The mutual fund investment is not rated. cm U) M X Investment Type Total Mutual Fund: Highmark Moderate $ 1,316,394 Total mutual fund $ 1,316,394 Total Portfolio $ 1,316,394 C) 52 Packet Pg. 217 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 B. Receivables Governmental and Business-type funds' receivables as of year-end for the City's major funds and non- major in the aggregate, net of the applicable allowances for uncollectible accounts, are as follows: a Governmental Funds: 4) Parks and Recreation General Development Non-major Total LL Accounts $ 1,242,123 $ - $ 93,361 $ 1,335,484 Propertytaxes 739,504 - - 739,504 Other taxes 2,015,088 803,713 867,708 3,686,509 Total $ 3,996,715 $ 803,713 $ 961,069 $ 5,761,497 Ln Allowance (806,950) - (2,339) (809,289) CM Total (net of allowance) $ 3,189,765 $ 803,713 $ 958,730 $ 4,952,208 Proprietary Funds: 0 Aquatic Internal L Utility Park Golf Total Service Accounts $ 4,495,763 $ 254,388 $ 18,773 $ 4,768,924 $ 24,481 Total $ 4,495,763 $ 254,388 $ 18,773 $ 4,768,924 $ 24,481 Allowance (149,109) - (445) (149,554) - Total (net of allowance) $ 4,346,654 $ 254,388 $ 18,328 $ 4,619,370 $ 24,481 U) CL Unearned Revenue CO At the end of the current fiscal year, the various components of unearned revenue reported in the LL governmental funds were as follows: Unearned Ln General Fund: CM Escrow deposits $ 18,993 U) M LEOSE Public Safety proceeds 39,556 Sub-total $ 58,549 12 2 Parks and Recreation Development Corporation: Centre and event deposits for future services $ 60,284 Sub-total $ 60,284 Total governmental funds $ 118,833 M Business-type activities for unearned revenue is: Advanced Payments,Gift Certificates,Store Credit $ 77,412 Total unearned revenue for enterprise funds $ 77,412 53 Packet Pg. 218 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 C. Capital assets Capital asset activity for the year ended September 30, 2015 was as follows: 0 Primary Government Beginning Ending 4) Governmental activities: Balance Increases Decreases Transfers Balance Capital assets,nondepreciable Land $ 82,376,461 $ $ 2,763,614 $ 1,231,524 $ 80,844,371 Works of art 310,208 - - 310,208 Assets held for sale 60,562 3,822,265 45,950 - 3,836,877 LL Construction in progress 33,763,400 51,718,983 50,070 (10,544,570) 74,887,743 Total nondepreciable 116,510,631 55,541,248 2,859,634 (9,313,046) 159,879,199 Capital assets,depreciable: Ln Buildings 60,705,375 - 1,058,650 4,364,245 64,010,970 Other improvements 186,824,121 587,508 72,900 4,436,887 191,775,616 Machinery and equipment 24,386,438 492,154 2,293,844 511,914 23,096,662 Total depreciable 271,915,934 1,079,662 3,425,394 9,313,046 278,883,248 Less accumulated depreciation for: A LL Buildings (19,528,166) (1,940,550) (17,644) (21,451,072) Other improvements (88,249,617) (5,238,338) (5,523) (93,482,432) Machinery and equipment (16,299,842) (1,526,568) (2,278,174) (15,548,236) Total accumulated depreciation (124,077,625) (8,705,456) (2,301,341) (130,481,740) U) Total depreciable-net 147,838,309 (7,625,794) 1,124,053 9,313,046 148,401,508 CL Governmental activities-net $ 264,348,940 $ 47,915,454 $ 3,983,687 $ - $308,280,707 cue Primary Government Beginning Ending LL Business-type activities: Balance Increases Decreases Transfers Balance Capital assets,nondepreciable Ln Land $ 2,579,137 $ - $ $ - $ 2,579,137 Construction in progress 1,721,307 2,814,575 (2,995,748) 1,540,134 U) Total nondepreciable 4,300,444 2,814,575 (2,995,748) 4,119,271 Capital assets,depreciable: U) Buildings 4,405,053 - 4,405,053 Utility Plant 102,651,465 - 17,799 2,823,462 105,457,128 Other improvements 24,549,098 1 - - 24,549,099 Machinery and equipment 4,372,935 7,602 135,365 172,286 4,417,458 Total depreciable 135,978,551 7,603 153,164 2,995,748 138,828,738 2 Less accumulated depreciation for: Buildings (2,391,493) (147,578) (2,539,071) Utility Plant (51,995,326) (3,151,729) (2,427) (55,144,628) Cj Other improvements (12,094,201) (824,215) (12,918,416) Machinery and equipment (2,819,560) (419,725) (135,366) (3,103,919) Total accumulated depreciation (69,300,580) (4,543,247) (137,793) (73,706,034) Total depreciable-net 66,677,971 (4,535,644) 15,371 2,995,748 65,122,704 Business-type activities-net $ 70,978,415 $ (1,721,069) $ 15,371 $ - $ 69,241,975 54 Packet Pg. 219 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $1,312,552 Public safety 690,290 Culture and recreation 2,119,651 Public works 4,582,963 Total depreciation expense- governmental activities $ 8,705,456 LL Business-type activities: Water and sewer $3,357,903 Golf course 411,449 Ln Aquatic park 773,895 CM Total depreciation expense- business-type activities $ 4,543,247 M 0 2A Construction commitments & Other Significant Commitments LL 4- 0 The City has active construction projects as of September 30, 2015. The projects include street construction, widening, and streetscaping; as well as construction of drainage facilities, parks and park improvements, and municipal facilities. At year-end the City's commitments with contractors were as follows: U) 2 Expended to CL Project September 30, cam, Authorization 2015 Committed co Streets, drainage, public safety, park improvements, municipal facilities, LL equipment, and utility improvements $ 180,352,693 $120,798,563 $59,554,130 Ln CM D. Interfund receivables, payables, and transfers U) M X At September 30, 2015, interfund balances consisted of the following: Due to and due from other funds are the short-term portion of the advances to and advances from other funds. The Golf Course Fund is currently repaying two interfund loans to the General Fund and the Utility Fund. The original General Fund loans were $886,564 (which is an interest free loan) and is scheduled for full repayment in 2017. The original Utility Fund loan was $536,000. The current 2 estimated pay-off is fiscal year 2019. Due to/due from balances for governmental and proprietary funds are as follows: Governmental activities: Cj Receivable Fund Payable Fund Total General Fund Golf Fund $ 147,760 Total $ 147,760 55 Packet Pg. 220 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 Business-type activities: Receivable Fund Payable Fund Total Utility Fund Golf Fund 34,208 Total $ 34,208 Total for all funds $ 181,968 E Advances to other funds activity are expected to be reimbursed during a longer period of one year. The General Fund and the Utility Fund have advanced funds to Golf Fund for various equipment and machinery purchases. The Utility Fund advanced funds to Gas Development fund to purchase Ln property that is held for resale. 2015 advances to other funds ending balances were as follows: CM Governmental activities: Receivable Fund Payable Fund Total General Fund Golf fund $ 145,764 Total $ 145,764 0 r_ Business-type activities: Receivable Fund Payable Fund Total Utility Fund Gas Development $ 3,226,239 Golf Fund 169,863 Total 3,396,102 Total for all funds $ 3,541,866 Ln CM U) M X 4- 0 C) 56 Packet Pg. 221 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 Transfers In/Out amounts for Governmental and Proprietary Funds are as follows: Transfer in: General Parks and Internal General Capital General Debt Recreation Other Service Fund Projects Service Development Governmental Funds Total Transfer out: a� Governmental: General Fund $ $2,744,119 $ - $ 487,101 $ 1,522 $ 98,425 $ 3,331,167 E General Capital Projects 107 - - - 107 LL Parks and Recreation Development Fund 410,189 407,948 341,536 116,221 1,275,894 Gas Development Fund - 20,000 - - 20,000 < Other Governmental 24,871 933,500 565,839 1,524,210 Ln Subtotal governmental C14 funds $ 435,060 $4,105,567 $ 907,482 $ 487,101 $ 117,743 $ 98,425 $ 6,151,378 Proprietary: Utility Fund $3,729,888 $ $ $ - $ $225,000 $ 3,954,888 Aquatic Park 151,139 77,380 - 228,519 2 LL Golf - - - Subtotal enterprise funds 3,881,027 77,380 225,000 4,183,407 Internal Service Funds 763 1,852,944 472,384 - 2,326,091 U) Grand total $4,316,850 $5,958,511 $ 1,379,866 $ 564,481 $ 117,743 $323,425 $12,660,876 2 CL M Governmental In 2015, General Fund received $410,189 from Parks and Recreation Development Corporation for LL indirect cost fee. The Other Governmental transfers of $24,871 were from Donations and Crime Control District ($20,000 and $4,870 respectfully). These transfers were for cost sharing of Ln expenditures in the current year. Utility Fund transferred $3,729,888. This transfer is for payment for CM administration fees, payment in lieu of tax, and franchise fees. Aquatic Park paid for indirect and U) administration fees in the total sum of$115,139. General Capital projects received $2,744,199 from General Fund. These transfers were for permanent U) street and sidewalk, and facility construction projects. Parks and Recreation Development transferred $407,948 for new park facilities and infrastructure. Gas Development and Other Governmental funds transferred $20,000 and $933,500. These transfers represent funding for a land purchase and facilities construction. Internal Services transferred in $1,852,944. This transfer was to purchase machinery and equipment for Fleet Services and update facilities. General Debt Service receives transfers from self-supporting debt repayment sources each year. Parks and Recreation Development Corporation, Other Governmental, and Internal Service funds transferred $341,536, $565,838, and $472,384 respectively for their portion of debt service paid in Cj 2015. The other transfer of$107 was for bond proceeds left over from project savings and transferred into General Debt Service. Parks and Recreation Development Corporation received a baseline level transfer in from General Fund for the Recreation Centre operations. The transfer amount for 2015 was $487,101. Aquatic Park transfer of $77,380 is an annual transfer to help offset operational costs incurred by the fund for the water park operations. 57 Packet Pg. 222 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 Other Governmental funds received a reimbursement of expenses from General Fund in the amount totaling $1,522. Parks and Recreational Development Funds transferred the annual 4B sales tax proceeds to the Economic Development Fund in the amount of$116,221. 0 Proprietary Internal service funds received additional funding to help offset non-capital project related costs above normal operations. These transfers were respectively $98,425 (General Fund), and $225,000 (Utility Fund). E. Long-term debt General Obligation Bonds The City issues general obligation bonds to provide funds for the acquisition and construction of major Ln capital assets such as streets, drainage structures, and municipal facilities, as well as for the purpose CM of refunding a portion of its outstanding debt. General obligation bonds have been issued for governmental activities (new animal adoption and rescue facility)during the year ended September 30, 2015. The debt issued was $10,835,000 and premium received of $1,048,856. General obligation bonds are direct obligations and pledge the full faith and credit of the government. These bonds generally are issued as 20-year serial bonds with equal amounts of principal maturing each year. 0 General obligation bonds currently outstanding are as follows: Interest Principal Purpose Rates Amount U) 2 Governmental activities 2.00 -5.50% $77,892,728 CL Business-type activities 2.00 -4.00% 1,812,272 $79,705,000 Annual debt service requirements to maturity for general obligations bonds are as follows: e' Ln CM Year Ending Governmental Activities Business-type Activities September 30, Principal Interest Principal Interest X 2016 $ 6,341,021 $ 2,519,602 $ 316,082 $ 65,467 U) 2017 6,307,841 2,322,511 362,159 53,294 2018 6,067,841 2,102,791 327,159 38,268 2019 5,648,918 1,909,215 171,082 27,803 2020 5,432,841 1,733,469 122,159 22,738 2 2021-2025 23,256,369 6,123,472 468,631 47,161 2026-2030 17,430,000 2,752,014 45,000 900 2031-2035 7,407,897 424,641 - - $ 77,892,728 $ 19,887,715 $ 1,812,272 $ 255,631 58 Packet Pg. 223 F.1.a Certificates of Obligation The City also issues certificates of obligation ("CO's") to finance the acquisition and construction of capital assets including certain capital improvement projects, municipal facilities, and machinery and equipment. Certificates of Obligation bonds have been issued for 2015. The debt issued was $21,990,000 principal and premium received of $3,242,887. The bonds are generally issued for 20- year serial bonds with equal amounts of principal maturing each year. Certificates of Obligation bonds currently outstanding are as follows: Interest Principal LL Purpose Rates Amount Governmental activities 1.25 -5.00% $50,105,000 Business-type activities 1.25 -5.00% 13,670,000 Ln $63,775,000 Annual debt service requirements to maturity for certificates of obligation of the primary government are _ as follows: 2 LL Year Ending Governmental Activities Business-type Activities September 30, Principal Interest Principal Interest r_ 2016 $ 4,630,000 $ 1,821,659 $ 1,055,000 $ 435,249 2017 4,100,000 1,702,689 995,000 406,572 2018 4,080,000 1,593,977 995,000 378,482 2019 3,555,000 1,478,075 965,000 349,897 CL 2020 3,420,000 1,356,361 965,000 320,992 2021-2025 14,840,000 5,002,528 4,415,000 1,162,179 `' 2026-2030 10,315,000 2,243,160 3,515,000 415,728 2031-2034 5,165,000 486,195 765,000 29,891 LL $ 50,105,000 $ 15,684,644 $ 13,670,000 $ 3,498,990 Ln cm Capital Leases U) M x Golf Fund entered into a lease agreement as lessee for the financing the acquisition of golf cart 12 equipment originally valued at $387,845. The equipment has a four year estimated useful life with a U) remaining net book value of$48,481. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of future minimum lease payments as of the inception date. The future minimum lease obligations and the net present value of these minimum lease payments were as follows: 4- 0 Year Ending Business-type September 30, Activities Cj 2016 81,799 2017 92,400 Total Minimum Lease Payments 174,199 Less: Amount representing interest (11,095) $ 163,104 59 Packet Pg. 224 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 Refunding of Debt On December 2, 2014, the City issued $10.835 million in General Obligation Bonds with an average interest rate of 3.863% to partial refund $10.945 million of outstanding 2005 and 2006 General Obligation and Certificate of Obligations with an average interest rate of 4.578%. The net proceeds of $11,474,387 (includes premium of $1,025,798) million were used to purchase U.S. government securities. Those securities were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments on the bonds. As a result, the bonds are considered to be defeased and the liability for those bonds has been removed from the government-wide statement of net position. The refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of ($572,633). This difference, reported in the accompanying financial statements as an increase from deferred loss on refunding, is being charged to operations through the year 2025. An economic gain was incurred (difference between the present values of the old and new debt service Ln payments)of$905,150. cm Changes in long-term liabilities Long-term liability activity for the year ended September 30, 2015, is reflected in the following tables. Beginning Due Within 2 Balance Additions Reductions Ending Balance One Year r_ Governmental Activities: Bonds Payable General Obligation Bonds $ 79,927,104 $ 9,855,000 $11,889,376 $ 77,892,728 $ 6,341,021 Certificates of Obligation 36,050,000 21,990,000 7,935,000 50,105,000 4,630,000 Sales Tax Revenue Bonds 105,000 - 105,000 - - a. Deferred loss on refunding (266,749) (520,764) (136,499) (651,014) Deferred gain on refunding 205,909 - 25,520 180,389 Premium on Bond Issues 1,602,493 4,195,858 328,667 5,469,684 Discounton Bond Issues (17,778) - (9,565) (8,213) Compensated Absences 2,879,964 1,106,241 706,981 3,279,224 446,601 < Other Post Employment Benefits 8,661,205 888,266 - 9,549,471 Net Pension Liability 19,228,515 - 255,859 18,972,656 - Total Governmental Activities $ 148,375,663 $37,514,601 $21,100,339 $ 164,789,925 $11,417,622 U) M X Business-Type Activities: Bonds Payable General Obligation Bonds $ 1,692,896 $ 980,000 $ 860,624 $ 1,812,272 $ 316,082 Certificates of Obligation 15,280,000 - 1,610,000 13,670,000 1,055,000 Capital Lease 244,533 81,429 163,104 77,502 Deferred loss on refunding (22,444) (56,385) (19,848) (58,981) 2 Deferred gain on refunding 39,828 - 4,828 35,000 Premium on Bond Issues 158,337 95,885 21,559 232,663 Discounton Bond Issues (36,328) - (3,278) (33,050) - Compensated Absences 427,364 85,032 132,096 380,300 52,263 d3 Other Post Employment Benefits 1,106,219 110,347 - 1,216,566 - Net Pension Liability 2,401,080 - 31,849 2,369,231 - TotalBusiness-TypeActivities $ 21,291,485 $ 1,214,879 $ 2,719,259 $ 19,787,105 $ 1,500,847 60 Packet Pg. 225 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 IV. OTHER INFORMATION A. Risk management The government is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. While the City has historically retained a portion of these risks, coverage exists for: general, employment practice, law enforcement, and errors and omissions liability; excess workers' compensation; property damage; commercial crime coverage; and employee life insurance. Premiums are paid into the self-insurance internal service fund by all other participating funds and are available to pay claims, claim reserves, and administrative costs of the program. Liabilities of the fund are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for health and dental as well as Ln workers' compensation claims that have been incurred but not reported ("IBNR"). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, cm such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay-outs), and other economic and social factors. An excess coverage medical insurance 7z policy covers individual claims in excess of $175,000 and/or $7,133,360 in the aggregate for a 12- 2 month period beginning on January 1, 2015. Changes in the balances of claims liabilities during the past two years are as follows: r_ 2015 2014 Unpaid claims, beginning of year $ 989,811 $ 1,046,723 U) Incurred claims (including IBNR) 9,742,674 9,046,171 CL 2 Claim expense (9,520,100) (9,103,083) Unpaid claims, end of year $ 1,212,385 $ 989,811 B. Contingent liabilities Ln C) The City has participated in a number of State and Federal assistance grant programs. Amounts received or receivable under these programs are subject to audit and adjustment by grantor agencies, cm principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be disallowed X by the grantor cannot be determined at this time, although the City expects such amounts, if any, to be 2 immaterial. The City is a defendant in certain lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City's counsel the resolution of these matters will not have a material adverse effect on the financial condition of the City. The City's total liability for these lawsuits is 2 $1,450,000. 4- C. Postemployment Benefits Deferred Compensation Plan The City offers its employees a deferred compensation plan (the "Plan") created in accordance with Internal Revenue Code Section 457. The Plan is administered by Public Employees Benefit Services Corporation. In 1998, the City implemented the requirements of GASB No. 32, Accounting and Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans. In accordance with this statement and tax law, the City has amended its trust agreements which establish that all assets and income of the trust are for the exclusive benefit of eligible employees and their beneficiaries. Due 61 Packet Pg. 226 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 to the implementation of these changes, the City does not have any fiduciary responsibility or administrative duties relating to the deferred compensation plan other than remitting employees' contributions to the trustees. Accordingly, the City has not presented the assets and liabilities of the Plan in these basic financial statements. Retiree Healthcare Plan Plan Description. The City provides postretirement health and dental care benefits for retirees and their dependents. The City does not have a separate audited generally accepted accounting principles financial report for the retiree health plan. The benefits vary depending upon a retiree's years of service. Retirees fall into three categories: full retirement, early retirement, and combined service retirement. The full retirement retiree pays 100% of the current premiums for health and dental care coverage for themselves and covered dependents. Ln Early retirement and combined service retirement employees pay premiums for health and dental care coverage for themselves and covered dependents at 150% and 175%, respectively, of the current cm premium. The City's regular health and dental care benefit providers underwrite the retirees' policies. Retirees may not convert the benefit into an in-lieu payment to secure coverage under independent plans. 7Z 2 Membership Non-vested active members 403 Fully-vested active members 85 Retirees and beneficiaries currently receiving benefits 149 637 U) The City of North Richland Hills Retired Employees Healthcare Plan (NRHREHP) is a single-employer defined benefit healthcare plan and is self administered through an internal oversight committee (appointed by the City Manager through conveyed authority from City Council). NRHREHP provides medical, prescription, and dental insurance benefits to eligible retirees and their spouses. City council co is the authoritative body granting health care benefits for both active and retired employees. Funding Policy. The contribution requirements of plan members and the state are established and may be amended by the City Council members. The required contribution is based on projected pay-as-you- 0 Ln go financing requirements, with an additional amount to prefund. cm For fiscal year 2015, the City contributed a total of$1,688,391 to the plan for current premiums. Of the $1,688,391, $100,000 was contributed to the OPEB Trust and $1,588,391 was for and health insurance X premium activity. U) It is anticipated that governmental fund General Fund will liquidate the majority other post employment benefits liabilities. Annual OPEB Cost and Net OPEB Obligation. The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer required contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation to NRHREHP: 62 Packet Pg. 227 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 2013 2014 2015 Annual required contribution $ 2,991,041 $ 3,177,342 $ 3,290,774 Interest on net OPEB obligation 263,782 340,422 439,535 Adjustment to annual required contribution (209,284) (270,092) (1,043,305) Annual OPEB cost(expense) 3,045,539 3,247,672 2,687,004 Contributions made (1,278,708) (1,108,890) (1,688,391) Increase(Decrease)in net OPEB obligation 1,766,831 2,138,782 998,613 Net OPEB obligation-beginning of year 5,861,812 7,628,642 9,767,424 Net OPEB obligation-end of year $ 7,628,642 $ 9,767,424 $ 10,766,037 Ln The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the cm net OPEB obligation for 2013 through 2015: Percentage Fiscal Annual of Annual 2 LL Year OPEB OPEB Cost Net OPEB Ended Cost Contributed Obligation 9/30/2013 $ 3,045,539 41.99% $ 7,628,642 M 9/30/2014 $ 3,247,672 34.14% $ 9,767,424 9/30/2015 $ 3,381,581 70.47% $ 10,766,037 CL Funded Status and Funding Progress. As of September 30, 2015, the most recent actuarial valuation date, the plan was 2.62% percent funded. The actuarial accrued liability for benefits was $52,473,590, co and the actuarial value of assets was $1,341,699, resulting in an unfunded actuarial accrued liability (UAAL) of$51,131,892. The covered payroll (annual payroll of active employees covered by the plan) was $32,831,592 and the ratio of the UAAL to the covered payroll was 155.7%. Ln C) Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include cm assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are X subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary U) information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the September 30, 2015, actuarial valuation, the entry age actuarial cost method was used. The actuarial assumptions included a 4.5 percent investment rate of return (net of administrative expenses), which is a the interest rate of the expected long-term investment returns on plan assets and on the employer's own investments calculated based on the funded level of the plan at the valuation date, and 63 Packet Pg. 228 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 an annual healthcare cost trend rate of 10.00% initially, reduced by decrements to an ultimate rate of 5.00% after ten years. The UAAL is being amortized as a level percentage of projected payroll on a closed basis. Each component of the calculation is being amortized over a thirty year period since inception. The healthcare cost trend rate for the plan used 9.5% for 2015 ending with 4.5% rate for 2023 and beyond. a� D. Employee retirement system and pension plan Plan Description The City of North Richland Hills participates as one of 860 plans in the nontraditional,joint contributory, hybrid defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). Ln TMRS is an agency created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent multiple-employer retirement cm system for municipal employees in the State of Texas. The TMRS Act places the general administration and management of the System with a six-member Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS's defined benefit pension plan is a tax-qualified plan under Section 401 (a) of the Internal Revenue Code. TMRS issue a publically available comprehensive a® annual financial report (CAFR)that can be obtained at www.tmrs.org. r_ All eligible employees of the city are required to participate in TMRS. Benefits Provided U) 2 TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the CL governing body of the City, within the options available in the state statutes governing TMRS. to co At retirement, the benefit is calculated as if the sum of the employee's contributions, with interest, and the city-financed monetary credits with interest were used to purchase an annuity. Members may choose to receive their retirement benefit in one of seven payments options. Members may also choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to Ln 12, 24, or 36 monthly payments, which cannot exceed 75%of member's deposits and interest. cm Benefits depend upon the sum of the employees' contributions to the plan, with interest, and the City-financed monetary credits, with interest. At the date the plan began, the City granted monetary X credits for service rendered before the plan began of a theoretical amount equal to two times what would have been contributed by the employee, with interest, prior to establishment of the plan. T Monetary credits for service since the plan began are a percent (100%, 150% and 200%) of the employee's accumulated contributions. In addition, the City can grant, as often as annually, another type of monetary credit referred to as an updated service credit. An updated service credit is a ig theoretical amount which, when added to the employee's accumulated contributions and the monetary credits for service since the plan began, would be the total monetary credits and employee contributions accumulated with interest if the current employee contribution rate and City matching percent had always been in existence and if the employee's salary had always been the average of his salary in the last three years that are one year before the effective date. At retirement, the benefit is calculated as if the sum of the employee's accumulated contributions with interest and the employer-financed monetary credits with interest were used to purchase an annuity. Members can retire at ages 60 and above with 5 or more years of service or with 20 years of service regardless of age. A member is vested after 5 years. The plan provisions are adopted by the City Council, within the options available in the state statutes governing TMRS and within the actuarial constraints also in the statutes. 64 Packet Pg. 229 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 As the December 31, 2014 valuation and measurement date, the following employees were covered by the benefit terms: 0 Inactive employees or beneficiaries currently receiving benefits 282 Inactive employees entitled to but not yet receiving benefits 231 Active employees 542 1,055 Contributions Ln The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the city matching percentages are either 100%, 150%, or 200%, both as adopted by the governing cm body of the city. Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. 2 4- Employees for the City were required to contribute 7% of their annual gross earnings during the fiscal year. The contribution rates for the City were 17.64% and 16.79% in calendar years 2014 and 2015, respectively. The city's contributions to TMRS for the year ended September 30, 2015, were $5,528,987, and were equal to the required contributions. U) Net Pension Liability CL The City's net pension liability (NPL) was measured as of December 31, 2014, and the total pension to liability (TPL) used to calculate the net pension liability was determined by an actuarial valuation as of co that date. Actuarial assumptions: Ln to The total pension liability in the December 31, 2014 actuarial valuation was determined using the following actuarial assumptions: cm U) M Inflation 3.0% per year X Overall payroll growth 3.0% per year T FE Investment Rate of Return 7.0%, net of pension plan investment expense, including inflation Salary increases were based on a service-related table. Mortality rates for active members, retirees, and beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Table, with male rates multiplied by 109% and female rates multiplied by 103%. The rates are projected on a fully generational basis by scale BB to account for future mortality improvements. For disabled annuitants, the gender-distinct RP2000 Disabled Retiree Mortality Table is used, with slight adjustments. C) Actuarial assumptions used in the December 31, 2014, valuation were based on the results of actuarial experience studies. The experience study in TMRS was for the period January 1, 2006 through December 31, 2009, first used in the December 31, 2010 valuation. Healthy post-retirement mortality rates and annuity purchase rates were updated based on a Mortality Experience Investigation Study covering 2009 through 2011, and dated December 31, 2013. These assumptions were first used in the December 31, 2013 valuation, along with a change to the Entry Age Normal (EAN) actuarial cost 65 Packet Pg. 230 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 method. Assumptions are reviewed annually. No additional changes were made for the 2014 valuation. The long-term expected rate of return on pension plan investments is 7.0%. The pension plan's policy in regard to the allocation of invested assets is established and may be amended by the TMRS Board of Trustees. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term and long-term funding needs of TMRS. The long-term expected rate of return on pension plan investment was determined using a building- block method in which best estimate ranges of expend future real rates of return (expected returns, net of pension plan investment expense and inflation are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The Ln target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: CM Asset Class Target Long-Term Expected Real Allocation Rate of Return (Arithmetic) Domestic Equity 17.5% 4.80% 2 International Equity 17.5% 6.05% Core Fixed Income 30.0% 1.50% Non-Core Fixed Income 10.0% 3.50% Real Return 5.0% 1.75% Real Estate 10.0% 5.25% CL Absolute Return 5.0% 4.25% Private Equity 5.0% 8.50% Total 100.0% Ln C) Discount Rate CM The discount rate used to measure the total pension liability was 7.0%. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made X at the rates specified in statute. Based on that assumption, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 4- 0 C) 66 Packet Pg. 231 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 Changes in Net Pension Liability Net Pension Total Pension Plan Fiduciary Liability Liability(a) Net Position(b) (a)-(b) Balance at Septem ber 30,2014 $ 203,427,285 $ 181,797,690 $21,629,595 Changes for the year: ea Service costs 5,572,383 - 5,572,383 E Interest 14,176,755 14,176,755 Difference between expected and actual experience (1,880,743) - (1,880,743) Contributions-employer 5,636,415 (5,636,415) Contributions-employee 2,236,673 (2,236,673) Ln Netinvestment income 10,400,524 (10,400,524) Benefits payments,including refunds of employee contributions (7,376,810) (7,376,810) - M Administrative expense (108,580) 108,580 Other changes - (8,929) 8,929 2A Net Changes 10,491,585 10,779,293 (287,708) Balance at September 30,2015 $ 213,918,870 $ 192,576,983 $21,341,887 0 M Sensitivity of the net pension liability to changes in the discount rate. U) 2 The following presents the net pension liability of the City, calculated using the discount rate of 7.0%., °. as well as what the City's net pension liability would be if it were calculate using a discount rate that is 1-percentage-point lower(6.0%)or 1-percentage higher(8.0%)than the current rate: 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate (6.0%) (7.0%) (8.0%) 0 Ln City's Net pension liability(asset) 53,509,591 21,341,887 (4,908,752) cm U) M X Pension Plan Fiduciary Net Position Detailed information about the pension plan's Fiduciary Net Position is available in a separately-issued TMRS financial report. That report may be obtained on the internet at www.tmrs.com Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to 2 Pensions For the year ended September 30, 2015, the city recognized pension expense of$5,005,761. At September 30, 2015, the city reported deferred outflows of resources and deferred inflows of Cj resources related to pension from the following sources: 67 Packet Pg. 232 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 Deferred Outflows Deferred Inflows of Resources of Resources Difference between projected and actual investment earnings 1,860,252 - Differences between expected and actual experience - 1,517,307 Contributions subsequentto the measurement date 3,930,875 - Total $ 5,791,127 $ 1,517,307 Ln $3,930,875 reported as deferred outflow of resources related to pension resulting from contributions CM subsequent to the measurement date will be recognized as a reduction of the net pension liability for the year ending September 30, 2016. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: 2 Year ended December 31: LL 4- 2015 $ 101,627 2016 101,627 2017 101,627 2018 101,627 2019 (63,563) $ 342,945 CL Subsequent event: LL Pursuant to TMRS policy of conducting experience studies every four years, the TMRS Board at their July 31, 2015 meeting determined that they would be changing certain actuarial assumptions including 0 Ln reducing the long term expected rate of return from the current 7% to 6.75% and changing the inflation assumption from 3% to 2.5%. Reduction of expected investment return and related discount rate will CM increase projected pension liabilities. Reducing the inflation assumption reduces liabilities as future annuity levels and future cost of living adjustments are not projected to be a large as originally projected. X While the actual impact on the City's valuation for December 31, 2015 is not known the City does expect U) some downward pressure on its funded status and upward pressure on its 2017 actuarially determined contribution (ADC) due to this change. Accordingly, the City has included in its approved fiscal year 2016 budget to continue to fund pension contributions above the required ADC which will help smooth impacts of any increases in the required ADC for fiscal year 2017. E. New Financial Reporting Requirements 4- The GASB has issued the following statement which became effective for fiscal year 2015. Statement No. 68, "Accounting and Financial Reporting for Pensions-an amendment of GASB Statement No. 27." — This statement changes the focus of pension accounting for employers from whether they are responsibly funding their plan over time to a point-in-time liability that is reflected in the employer's financial statements for any actuarially unfunded portion of pension benefits earned to date. 68 Packet Pg. 233 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 The implementation of Statement No. 68 resulted in the restatement of beginning net position for the elimination of the previously reported net pension obligation, the recording of the beginning net pension liability and the beginning deferred outflow for contributions made after the measurement date. 0 Government-wide Statement of Activities Governmental Business-type Activities Activities Net position at September 30, 2014, as previously reported $ 240,342,055 $ 84,578,461 Reversal of net pension obligation as of September 30, 2014 3,764,832 $ 470,118 Ln Recording of net pension liability as of September 30, 2014 (19,228,514) (2,401,081) Deferral for pension contributions made after the measurement date 3,590,015 448,288 U) Net position at September 30, 2014 as restated $ 228,468,388 $ 83,095,786 The adoption of GASB Statement No. 68 had the same impact on the proprietary fund financial statements as the business-type activities at the government-wide level. CL F. Implementation of future GASB Statements The Governmental Accounting Standards Board ("GASB") has issued the following new statements to be implemented in future years. LL Statement No. 72:Fair Value Measurement and Application Ln GASB Statement No. 72: Fair Value Measurement and Application was issued in February 2015. This cm Statement addresses accounting and financial reporting issues related to fair value measurements. The definition of fair value is the price that would be received to sell and asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This Statement U) provides guidance for determining a fair value measurement for financial reporting purposes. This Statement also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements. This standard becomes effective for the City in fiscal year 2016. ig Statement No. 73: Accounting and Financial Reporting for Pensions and Related Assets that 0 are not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of iE GASB Statement 67 and 68. 4- 0 GASB Statement No. 73: Accounting for Financial Reporting for Pension and Related Assets that are not within the Scope of GASB 68, and Amendments to Certain Provisions of GASB 67 and 68 was C3 issued in June 2015. The objective of this Statement is to improve the usefulness of information about pensions included in the general purpose external financial reports of state and local governments for making decisions and assessing accountability. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for all postemployment benefits with regard to providing decision-useful information, supporting assessments of accountability and interperiod equity, and creating additional transparency. This Statement is effective for the City's fiscal year 2017. 69 Packet Pg. 234 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 Statement No.74: Financial Reporting for Postemployment Benefit Plans other than Pension Plans GASB Statement No. 74: Financial Reporting for Postemployment Benefit Plans other than Pension Plans was issued June 2015. The objective of this Statement is to improve the usefulness of information about postemployment benefits other than pensions (other postemployment benefits or OPEB) included in the general purpose external financial reports of state and local governmental OPEB plans for making decisions and assessing accountability. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for all postemployment benefits (pensions and OPEB) with regard to providing decision-useful LL information, supporting assessments of accountability and interperiod equity, and creating additional transparency. This standard becomes effective for the City in fiscal year 2017. Statement No.75:Accounting and Financial Reporting for Postemployment Benefits Other than Ln Pensions. cm GASB Statement No. 75: Accounting and Financial Reporting for Postemployment Benefits Other than Pensions was issued June 2015. The primary objective of this Statement if to improve accounting and financial reporting by state and local governments for postemployment benefits other than pensions (other postemployment benefits or OPEB). It also improves information provided by state and local governmental employers about financial support for OPEB that is provided by other entities. This LL Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for all postemployment benefits (pensions and OPEB) with regard to providing decision-useful information, supporting assessments of accountability and interperiod equity, and creating additional transparency. This standard become effective for the City in fiscal year 2018. U) Statement No.76: The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. GASB Statement No. 76: The Hierarchy of Generally Accepted Accounting Principles for State and co Local Governments was issued in June 2015. The objective of this Statement is to identify — in the context of the current governmental financial reporting environment — the hierarchy of generally accepted accounting principles (GAAP). The "GAAP hierarchy" consists of the sources of accounting principles used to prepare financial statements of state and local governmental entities in conformity Ln with GAAP and the framework for selecting those principles. This Statement reduces the GAAP hierarchy to two categories of authoritative GAAP and addresses the use of authoritative and cm non authoritative literature in the event that the accounting treatment for a transaction or other event is not specified within a source of authoritative GAAP. This standard become effective for the City in 9 fiscal year 2016. U) Statement No.77: Tax Abatement Disclosures GASB Statement No. 77: Tax Abatement Disclosures issued in August 2015. This Statement improves financial reporting by giving users of financial statement essential information that is not consistently or 2 comprehensively reported to the public at present. Disclosure of information about the nature and magnitude of tax abatements will make these transactions more transparent to financial statement users. As a result, users will be better equipped to understand (1) how tax abatements affect a government's future ability to raise resources and meet its financial obligations and (2)the impact those abatements have on a government's financial position and economic condition. This standard becomes effective for the City in fiscal year 2016. Statement No.78:Pensions provided through certain Multiple-employer Defined Benefit Pension Plans GASB Statement No. 78: Pensions provided through certain Multiple-employer Defined Benefit Pension Plans was issued in November December 2015. This statement amends the scope and 70 Packet Pg. 235 F.1.a CITY OF NORTH RICHLAND HILLS Notes to Basic Financial Statements September 30, 2015 applicability of Statement No. 68 to exclude pensions provided to employees of state or local governmental employers through a cost-sharing multiple-employer defined benefit pension plan that (1) is not a state or local governmental pension plan, (2) is used to provide defined benefit pensions both to employees of state or local governmental employers and to employees of employers that are not state or local governmental employers, and (3) has no predominant state or local governmental employer (either individually or collectively with other state or local governmental employers that provide pensions through the pension plan). This Statement establishes requirements for recognition and measurement of pension expense, expenditures, and liabilities; note disclosures; and required supplementary information for pensions that have the characteristics described above. This standard becomes effective for the City in fiscal year 2016. Statement No.79: Certain External Investment Pools and Pool Participants GASB Statement No. 79: Certain External Investment Pools and Pool Participants was issued in Ln December 2015. This Statement addresses accounting and financial reporting for certain external investment pools and pool participants. Specifically it establishes criteria for an external investment CM pool to qualify for making the election to measure all of its investments at amortized cost for financial reporting purposes. This Statement also establishes additional note disclosure requirements for qualifying external investment pools that measure all of their investments at amortized cost for financial reporting purposes and for governments that participate in those pools. This standard becomes A LL effective for the City in fiscal year 2016. 0 The City has not yet determined the effect on the City's financial statements or disclosures upon implementation of these new accounting standards. * * ** * * U) 2 CL LL Ln CM C) U) M X 4- 0 C) 71 Packet Pg. 236 0 a� S Ln CD 2A 4- 0 r_ 0 m r_ 4) U) CL to Ln CD C) U) m x 4- 0 C) This page intentionally left blank. 72 Packet Pg. 237 F.1.a 0 a� S Ln CD 2 4- 0 r_ 0 REQUIRED SUPPLEMENTARY INFORMATION 0 to CO Ln oo cm 0 m x 4- 0 73 Packet Pg. 238 0 a� S Ln CD 2A 4- 0 r_ 0 m r_ 4) U) CL to Ln CD C) U) m x 4- 0 C) This page intentionally left blank. 74 Packet Pg. 239 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Required Supplementary Information Texas Municipal Retirement System Plan Schedule of Changes in Net Pension Liability and Related Ratios 0 Measurement Year 2014 20 a� Total pension liability Service cost $ 5,572,383 Interest (on the total pension liability) 14,176,755 Difference between expected and actual Ln experience (1,880,743) cm Benefit payments, including refunds of employee contributions (7,376,810) Net Change in Total Pension Liability 10,491,585 Total Pension Liability -Beginning 203,427,285 Total Pension Liability -Ending (a) $ 213,918,870 0 r_ Plan Fiduciary Net Position Contributions-employer $ 5,636,415 Contributions-employee 2,236,673 Net investment income 10,400,524 Benefit payments, including refunds of employee contributions (7,376,810) Administrative expense (108,580) Other (8,929) Ln Net Change in Plan Fiduciary Net Position 10,779,293 cm Plan Fiduciary Net Position - Beginning 181,797,690 U) Plan Fiduciary Net Position - Ending (b) $ 192,576,983 Net Pension Liability- Ending (a) -(b) $ 21,341,887 Plan Fiduciary Net Position as a Percentage of Total Pension Liability 90.02% a, Covered Employee Payroll $ 31,952,469 Net Pension Liability as a Percentage of Covered Employee Payroll 66.79% 75 Packet Pg. 240 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Required Supplementary Information Texas Municipal Retirement System Plan Schedule of Contributions 0 2015 Actuarially determined contribution $ 5,528,987 Contributions in relation to the actuarially determined contribution $ 5,528,987 Contribution deficiency(excess) $ - Ln Covered employee payroll $ 32,471,592 cm Contributions as a percentage of covered employee payroll 17.03% Notes: 2 4- 0 Valuation Date: Actuarially determined contribution rates are calculated as of December 31 and become effective in January 13 months later. Methods and Assumptions Used to Determine Contribution Rate: Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Payroll, Closed Remaining Amortization Period 23 years Ln Asset Valuation Method 10 Year Smoothed Market; 15%soft corridor cm Inflation 3.00% U) Salary Increases 3.50% to 12.00% including inflation Investment Rate of Return 7.00% Retirement Age Experience-based table of rates that are specific to the City's plan of benefits. Last updated for the 2010 valuation pursuant to an experience study of the period 2005 -2009. Mortality RP2000 Combined Mortality Table with Blue Collar Adjustment a, with male rates multiplied by 109% and female rates multi- plied by 103% and projected on a fully generational basis with scale BB. C) Other Information: There were not benefit changes during the year. 76 Packet Pg. 241 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Required Supplementary Information North Richland Hills Other Post Employment Benefits Schedule of Funding Progress 0 Unfunded a� Valuation Actuarial Dated Actuarial Actuarial Accrued Annual UAAL September Value of Accrued Liablity Covered as %of 30, Assets Liability (AAL) (UAAL) Fund Ratio Payroll Payroll 2010 $ 518,660 $38,868,426 $38,349,766 1.00% $30,952,000 123.90% Ln 2011 $ 595,415 $42,098,543 $41,450,154 2.00% $30,514,794 135.80% CM 2012 $ 779,748 $44,173,440 $43,393,624 2.00% $31,735,386 136.70% 2013 $ 1,032,303 $46,317,371 $45,285,068 2.28% $31,030,924 145.90% 2014 $ 1,181,007 $48,231,929 $47,050,922 2.51% $32,272,161 145.80% 2015 $ 1,341,699 $52,473,590 $51,131,892 2.62% $32,831,592 155.70% 0 r_ U) 2 CL Ln CM C) U) M x 4- 0 77 Packet Pg. 242 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Required Supplementary Information(unaudited) Schedule of Revenues, Expenditures,and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual GENERALFUND For the Year Ended September 30,2015 Budgeted Amounts Variance with Final Budget Positive Original Final Actual (Negative) REVENUES Taxes: Property taxes(penalties&interest included) $ 14,446,942 $ 14,386,907 $ 14,406,514 $ 19,607 City sales taxes 9,096,914 9,233,855 9,297,668 63,813 Mixed beverage taxes 127,500 140,000 138,100 (1,900) LL Franchise taxes 5,059,327 5,172,497 5,264,471 91,974 Sub-total Taxes 28,730,683 28,933,259 29,106,753 173,494 Fines and forfeitures 2,229,005 2,188,442 2,222,995 34,553 Licenses and permits 1,898,484 1,831,128 1,852,920 21,792 Ln Charges for services 3,642,389 2,068,433 2,183,975 115,542 Intergovernmental 4,485,995 4,598,468 4,556,214 (42,254) Miscellaneous 2,683,835 2,605,085 2,634,492 29,407 Sub-total Non-Tax Revenues 14,939,708 13,291,556 13,450,596 159,040 Other Appropriations: Court Technology Funds - 3,250 3,250 - A LL Utility Assistance Program 10,000 1,906 1,906 PEG Fees 5,500 5,500 5,500 Record Preservation Fees - 8,000 8,000 Previous year encumbrances 102,079 102,079 General Fund Reserves - 1,200,000 1,200,000 Sub-Total Appropriations 15,500 1,320,735 1,320,735 - TOTAL REVENUES 43,685,891 43,545,550 43,878,084 332,534 CL EXPENDITURES City Council 127,943 127,943 116,848 11,095 City Manager 605,171 605,398 595,828 9,570 Communications 352,637 352,815 339,844 12,971 LL City Secretary 474,311 482,311 426,363 55,948 Legal 303,928 303,928 265,100 38,828 Ln Human Resources 124,029 124,064 122,253 1,811 Finance 675,320 634,513 625,357 9,156 U) Budget&Research 411,875 397,361 359,536 37,825 Municipal Court 1,377,246 1,380,063 1,335,981 44,082 12 Planning and Inspections 1,026,913 1,027,221 1,030,914 (3,693) T Economic Development 322,689 322,689 310,638 12,051 Library 2,073,313 2,075,100 2,033,512 41,588 Neighborhood Services 1,737,317 1,721,977 1,644,081 77,896 Public Works 4,157,896 4,170,338 3,989,119 181,219 Parks&Recreation 2,061,510 2,059,805 2,024,804 35,001 Police 12,540,705 12,585,338 12,644,381 (59,043) 4- Emergency Management 928,502 852,626 828,451 24,175 Fire 10,714,679 10,777,550 10,664,645 112,905 Building Services 737,070 737,070 737,070 - Non-Departmental 2,312,412 913,875 767,629 146,246 Sub-Total Departments 43,065,466 41,651,985 40,862,354 789,631 Reserves&Other Expenditures Reserves 543,040 465,680 477,167 (11,487) Transfers out 77,385 1,377,385 1,377,385 - Economic development incentives - 50,500 28,000 22,500 Sub-Total Reserves and Other 620,425 1,893,565 1,882,552 11,013 TOTAL EXPENDITURES 43,685,891 43,545,550 42,744,906 800,644 Net Increase $ - $ - $ 1,133,178 $ 1,133,178 The notes to the required supplemental information are an integral part of this schedule. 78 Packet Pg. 243 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Notes to Required Supplementary Information September 30,2015 A. Budgetary Information Annual budgets are adopted on a modified cash basis for the following : General, General Debt Service, Promotional, Donations, Special Investigation, Drainage Utility, Parks and Recreation Development, Crime Control District, Gas Development, Traffic Safety, Utility,Aquatic Park, Golf, Facilities and Construction, Fleet Services, Self Insurance, and Information Systems. The General Capital Projects Fund and Grants Fund adopt project-length budgets. All annual appropriations lapse at fiscal year end. Prior to September 1, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following °e' October 1. The operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted to obtain taxpayer comments. Prior to September 30,the budget is legally enacted through passage of an ordinance. The appropriated budget is prepared by fund, department, and division. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however,any revisions that alter the total expenditures of any fund must be approved by the City Council. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations)is the fund level. During the year the City budget appropriations were increased by$3,593,754. Ln Revision Increase Legally Adopted Fund Original Final (Decrease) Explanation General Fund $ 43,685,891 $ 43,545,550 $ (140,341) The fund decreased in budget appropriations primarily to various expense reductions that include ambulance receivable bad debt expense, radio system reimbursements, record °® preservation fees,and various other smaller adjustments. r_ General Debt Service $ 11,095,008 $ 11,095,006 $ (2) During the fiscal year, minor adjustments were made to revise budget to include actual, instead of estimated, principal and interest payments. U) Parks and Recreation $ 8,022,142 $ 8,176,372 $ 154,230 The fund is ending is positive operation position and therefore, CL a budget increase to transfer the increase to reserves for future operations or capital needs. to Gas Development $ - $ 20,000 $ 20,000 The fund increased transfers out budget to fund a capital project. LL Donations $ 170,174 $ 276,360 $ 106,186 The increase was due to transfer out of donations received for the construction of a new Animal Control facility($78,500). The Ln rest of the increase was to fund new donation programs. Special Investigations $ 295,500 $ 326,142 $ 30,642 Prior year encumbrances totaling $30,642 rolled into FY 14/15 accounting for this increase. Drainage Utility Fund $ 600,838 $ 1,405,210 $ 804,372 $800,000 of this increase was directly related to a new transfer out to fund a capital project fund. Crime Control District $ 4,867,167 $ 4,887,881 $ 20,714 This increase was to add funding for two additional crime prevention programs. Traffic Safety $ 886,830 $ 1,029,582 $ 142,752 Of the $142,752 increase, $99,786 is attributed to anticipated 02 larger payment to the State for the photo enforcement program. 4— O Utility $ 31,279,714 $ 31,038,542 $ (241,172) The fund overall saw a decrease in costs for such things as water purchases and wastewater treatment. This net decrease is a result of multiple budget line changes for supplies and services. as Aquatic Park $ 4,668,899 $ 5,011,788 $ 342,889 The appropriation increase was due to funding a new capital improvement project for the waterpark. Facilities and $ 2,809,117 $ 3,020,607 $ 211,490 Over half of this increase is due to purchasing of new facilities Construction equipment (New City Hall). The remaining differences are for various damage costs to buildings and Emergency Operations Center updates. 79 Packet Pg. 244 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Notes to Required Supplementary Information September 30,2015 Fleet Services $ 3,828,466 $ 4,167,198 $ 338,732 Of the$338,732 increase, $300,000 is due to a new transfer of funds to facilitate Capital Improvement Programs. Self Insurance $ 10,995,233 $ 11,413,954 $ 418,721 Increase is all due to rising health claims trend. O Information $ 3,061,149 $ 4,445,690 $ 1,384,541 Of this amount, $1,228,944 was new transfers to fund Capital Technology Improvement Projects. The remaining balance increase was minor line item increases for daily operational needs. Total $ 126,266,128 $ 129,859,882 $ 3,593,754 B. General Fund Budget-to-Actual Reconciliation An explanation of the differences between budgetary inflows and outflows and revenues and expenditures determined in accordance with generally accepted accounting principles follows: Ln Net increase(decrease)to budgetary unreserved undesignated fund balance $ 1,133,178 The City budgets"appropriations from fund balance"as a resource/inflow but in GAAP statements it is not a revenue or inflow source for current year revenue recognition (3,320,735) The City budgets specific"Reserves"expenditures as a outflow but in GAAP statements it is not an L expenditure: Peg Franchise Fees Reserves and Record Preservation Fees. 11,929 Increase(decrease)in investment fair value changes and interest unavailable are not considered a resource/inflow (16,501) ro- for budgetary recognition Increase(decrease)in intergovernmental shared services revenue are not considered a resource/inflow for budgetary recognition because payment for services will be received in subsequent fiscal year. (10,330) CL Increase(decrease)in miscellaneous revenue are not considered a resource/inflow for budgetary recognition because payment for services will be received in subsequent fiscal year. (3,001) to Sources/Inflows for advances given to other funds are not recognized as revenues in GAAP statements;only recognized as reduction of an asset on balance sheet and not a transfer in (147,720) LL C3 Outflows of sources for prepaid expenditures for budgetary purposes are immediately Ln recognized as an outflow upon remittance of payment in budgetary basis. GAAP statements delay expenditure recognition until the period of coverage. 22,029 U) M Outflows for expenditures for budgetary basis is recognized in actual period in which resources were X used to expend the payment. Accounts receivable bad debt is not recognized as an outflow of resources in the budgetary statement and only recognized as reduction of resources in GAAP statements. (202,342) M Special funded projects are appropriated through long range capital improvement budget in which segregated and specific funding is appropriated outside of the operating budget 20,723 Total"Net Change in Fund Balance"from the Statement of Revenues, Expenditures,and e' Changes in Balances-Governmental Fund--General Fund $ (2,512,770) 4— O C3 80 Packet Pg. 245 F.1.a NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS The Promotional Fund accounts for the operations and expenditures for which hotel/motel occupancy taxes are used. Occupancy tax revenues are primarily to attract tourist and new businesses to the City. The Donations Fund holds funds contributed (donated)to the City for special projects earmarked by requests or nonrecurring expenditures. It primarily collects and holds funds that are voluntarily given by the citizens via adding $1.50 to their water utility billing which is then distributed to support the activities of the library and neighborhood services departments. LL The Special Investigations Fund is mandated by state statute to account for various legal seizure and forfeiture deposits and expenditures. 4) The Drainage Utility Fund accounts for the establishment of drainage facilities within the municipal boundaries of the City and the subsequent billing and collection of fees so established. Ln The Crime Control and Prevention District Fund accounts for the accumulation and use of half-cent sales tax proceeds dedicated for crime prevention and reduction programs. 4) The Grants Fund is a centralized fund accounting for all private, local, state, and federal grant proceeds. 2 The Economic Development Fund accounts for the accumulation and expenditure of resources designed to °®LL stimulate the local economy through development and redevelopment. r_ The Traffic Safety Fund accounts for funds collected from various red-light traffic safety cameras. These resources assist with funding of various traffic safety projects. Tax Increment Financing District#1 is to fund drainage improvements that would alleviate flooding problems, U) reduce property damage associated with the flooding, and stimulate development for the benefit of citizens CL within TIF#1. DEBT SERVICE FUND LL The Tax Increment Financing Districts (TIF's) Debt Service Fund is used to accumulate monies for the Ln payment of principal, interest, and related charges on the debts of Districts No. 1 and No.2. The Sales Tax Revenue Debt Service Fund is used to accumulate monies for the payment of principal, U) interest, and related charges on sales tax revenue bonds. 4- 0 81 Packet Pg. 246 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Combining Balance Sheet Non-major Governmental Funds September 30,2015 Special Special Crime Control Promotional Donations Investigations Drainage Utility District Assets Cash and cash equivalents $ 146,147 $ 179,090 $ 220,798 $ 274,975 $ Investments 328,677 418,332 489,944 603,553 Receivables,net of allowance Accounts - 91,022 Other taxes receivable 62,528 - - - 805,180 LL Interest receivable 180 233 252 328 174 as Intergovernmental receivables - - - - 6,300 Other receivables - 220 7,478 - Prepaid items 779 - - 2,584 Ln Restricted: - Cash and cash equivalents 580,129 Investments - - - - 465,712 Total assets $ 538,311 $ 597,875 $ 718,472 $ 969,878 $ 1,860,079 Liabilities U) Accounts payable - 2,064 116,680 1,323 LL Accrued liabilities 2,887 - - 118,098 Intergovernmental payables - - - 0 Deposits and other liabilities - 9 89 - Totalliabilities 2,887 2,073 116,769 119,421 Deferred Inflows of Resources U) Unavailable revenue-grants $ $ $ $ $ 6,300 CL Total deferred inflows of resources 6,300 Fund Balance Nonspendables: Prepaids 779 2,584 Restricted: LL Crime control district 1,576,555 Debt service Grants Promotional&economic development 528,645 U) Public safety - 595,904 Capital projects(bond funded) - ll 4) Committed: M Donations 595,802 Drainage utility - - - 969,878 Assigned: Purchases on order 6,000 5,799 - 155,219 e' Total fund balance 535,424 595,802 601,703 969,878 1,734,358 Total liabilities,deferred inflows 4- and fund balance $ 538,311 $ 597,875 $ 718,472 $ 969,878 $ 1,860,079 C3 82 Packet Pg. 247 F.1.a Revenue Debt Service Economic Tax Increment Tax Increment Sales Tax Total Non-major Grants Development Traffic Safety Finance District#1 Finance Districts Revenue Bond Governmental $ 14,725 $ 99,819 $ 196,129 $ $ $ $ 1,131,683 29,995 234,031 430,251 2,534,783 a� 91,022 - - - 867,708 39 321 233 39 760 98 2,657 as 45,490 - - - - - 51,790 - - 7,698 625 1,092 5,080 Ln 161,340 2,481,985 626,691 79,792 3,929,937 - 351,611 - 71,711 1,386,417 179,278 2,454,729 $ 90,874 $ 847,122 $ 626,613 $ 2,553,735 $ 2,014,960 $ 259,168 $ 11,077,087 2A 49,895 169,962 4,909 125,894 216,385 216,385 - 98 271,189 512,339 U) $ 24,748 $ $ $ $ $ 31,048 CL 24,748 31,048 M 625 1,092 5,080 LL - - - 1,576,555 - 2,013,868 259,168 2,273,036 Ln 65,501 - - - 65,501 - 847,122 - 1,375,767 U) - 355,424 951,328 - 2,553,735 2,553,735 - 595,802 969,878 - - - - - - 167,018 as 66,126 847,122 355,424 2,553,735 2,014,960 259,168 10,533,700 4- $ 90,874 $ 847,122 $ 626,613 $ 2,553,735 $ 2,014,960 $ 259,168 $ 11,077,087 C3 83 Packet Pg. 248 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Combining Statement of Revenues, Expenditures,and Changes in Fund Balance Non-major Governmental Funds Year Ended September 30,2015 Special Special Crime Control Promotional Donations Investigations Drainage Utility District REVENUES Taxes $ 232,793 $ $ $ - $ 4,720,531 Charges for services - 860,836 - Civil citations - Contributions - 240,362 - - Investmentincome(loss) 3,069 4,086 3,907 3,317 2,882 Intergovernmental - - 191,538 - 174,244 Forfeitures - 67,598 - Miscellaneous - 2 - - - Total revenues 235,862 244,450 263,043 864,153 4,897,657 Ln EXPENDITURES General government 98,484 26,386 - 538 - Public safety - 22,720 98,162 - 4,689,769 Culture and recreation 88,746 98,028 - - - Public works - - 33,019 U) Capital outlay: ILL Public safety - - 233,219 25,576 Culture and recreation 1,800 7,827 - - 0 Public works - - Debt service: Principal retirement Interest and fiscal charges CL Total expenditures 189,030 154,961 331,381 33,557 4,715,345 Excess(deficiency)of revenues over expenditures 46,832 89,489 (68,338) 830,596 182,312 OTHER FINANCING SOURCES(USES) Issuance of refunding of debt ILL Payment to refunded bond escrow agent Proceeds from sale of assets - 1,081 Ln Transferin 1,443 79 Transfers out (78,500) - (1,365,840) (4,870) U) Total other financing sources(uses) - (77,057) 1,160 (1,365,840) (4,870) Net change in fund balance 46,832 12,432 (67,178) (535,244) 177,442 1= Fund balance-beginning of year 488,592 583,370 668,881 1,505,122 1,556,916 T Fund balance-end of the year $ 535,424 $ 595,802 $ 601,703 $ 969,878 $ 1,734,358 4- 0 C3 84 Packet Pg. 249 F.1.a Revenue Debt Service Economic Tax Increment Tax Increment Sales Tax Revenue Total Non-major Grants Development Traffic Safety Finance District#1 Finance Districts Bonds Governmental $ $ $ $ $ 3,232,734 $ $ 8,186,058 - 860,836 1,226,567 1,226,567 - - 240,362 317 (2,197) 3,667 2,625 11,830 2,053 35,556 471,087 - - - - 836,869 as - 67,598 2 471,404 (2,197) 1,230,234 2,625 3,244,564 2,053 11,453,848 Ln 164,798 - 290,206 155,871 1,025,715 5,992,237 74,765 - 261,539 - 33,019 2A 73,758 25,873 358,426 - - - 9,627 0 788 788 2,486,733 105,000 2,591,733 U) - - - 712,651 5,760 718,411 CL 469,192 788 1,051,588 - 3,199,384 110,760 10,255,986 M 2,212 (2,985) 178,646 2,625 45,180 (108,707) 1,197,862 - - - 4,768,520 4,768,520 (4,768,520) (4,768,520) - 1,081 Ln T_ 116,221 117,743 (75,000) (1,524,210) U) - 41,221 - - - (1,405,386) 2,212 38,236 178,646 2,625 45,180 (108,707) (207,524) 63,914 808,886 176,778 2,551,110 1,969,780 367,875 10,741,224 $ 66,126 $ 847,122 $ 355,424 $ 2,553,735 $ 2,014,960 $ 259,168 $ 10,533,700 4- 0 C3 85 Packet Pg. 250 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual GENERAL DEBT SERVICE FUND Year Ended September 30, 2015 Variance with Final Budget- Positive Original Final Actual (Negative) 4) REVENUES _ Taxes: Property taxes(penalties& interest included) $ 8,840,000 $ 8,840,000 $ 8,840,000 $ - Sub-total ad valorem taxes 8,840,000 8,840,000 8,840,000 - Transfers in: Drainage utility 565,838 565,838 565,838 - Parks& recreation facilities development corp. 341,536 341,536 341,536 - Ln Fleet services fund 447,714 447,714 447,714 - Facilities services fund 24,670 24,670 24,670 - Gas development fund - - - - Sub-total transfers in 1,379,758 1,379,758 1,379,758 - Other: 2 LL Bond issuance premium 137,324 137,324 262,887 125,563 Refunding Proceeds - - 5,648,056 5,648,056 Interest income 7,000 12,029 15,685 3,656 City of Watauga, cip participation 82,853 82,853 82,853 - U) Miscellaneous Revenues - - 108 108 Appropriation of fund balance 648,073 648,073 648,073 - Sub-total other 875,250 880,279 6,657,662 5,777,383 Total revenues 11,095,008 11,100,037 16,877,420 5,777,383 EXPENDITURES LL Existing bonds&co's 10,854,508 10,854,506 10,923,172 (68,666) < Issuance costs/paying agent fees 240,500 240,500 258,140 (17,640) Ln Bond defeasance/refunding - - 5,648,056 (5,648,056) Total expenditures 11,095,008 11,095,006 16,829,368 (5,734,362) Net Increase $ - $ 5,031 $ 48,052 $ 43,021 X Notes to other supplementary information are an integral part of this schedule. 4- 0 86 Packet Pg. 251 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Schedule of Revenues, Expenditures,and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual PARKS AND RECREATION DEVELOPMENT CORPORATION FUND Year Ended September 30,2015 Variance with Final Budget- Positive Original Final Actual (Negative) REVENUES Sales tax $ 4,547,801 $ 4,616,928 $ 4,648,841 $ 31,913 Interest income 7,700 13,700 21,367 7,667 a' Youth assn.maintenance fees 54,500 57,000 47,444 (9,556) Tennis center revenue 386,850 348,498 329,384 (19,114) L Transfer in from aquatic park fund 77,379 77,379 77,379 Park impact fees 25,000 70,864 60,635 (10,229) Other income 1,500 19,664 46,351 26,687 NRH Centre Ln Memberships/drop-in passes 1,386,900 1,410,000 1,425,002 15,002 Fitness 368,000 371,005 385,800 14,795 CJ14 Recreation/sports 259,610 263,664 234,463 (29,201) Grand hall rental 165,000 174,105 184,919 10,814 >_ Catering&event fees 17,000 17,000 15,215 (1,785) Aquatic programs 180,600 189,000 218,325 29,325 A Pool rental 5,400 5,400 4,061 (1,339) 4- Gym rental 3,100 3,100 1,991 (1,109) r_ Concessions/merchandise 25,000 28,838 30,919 2,081 Special events 10,000 10,000 8,374 (1,626) Other 13,700 13,125 22,967 9,842 General fund 487,102 487,102 487,102 - U) Total revenues 8,022,142 8,176,372 8,250,539 74,167 CL EXPENDITURES cis Operating Park facilities development administration 709,231 711,278 710,339 939 Parks&public grounds 2,006,358 2,002,685 1,883,460 119,225 LL Tennis center operations 628,662 628,036 550,900 77,136 C3 Sub-total operating 3,344,251 3,341,999 3,144,699 197,300 Ln NRH Centre Center management 676,291 678,291 659,089 19,202 U) Fitness 344,197 346,297 367,092 (20,795) X Building operations 200,096 200,096 197,357 2,739 I® Aquatic 525,536 525,536 524,000 1,536 Recreation sports 342,678 342,678 279,766 62,912 Event center 250,109 250,109 231,986 18,123 Building services 320,000 320,000 320,000 - Sub-total NRH Centre 2,658,907 2,663,007 2,579,290 83,717 2 Other&Reserves Debt service-CO's 341,536 341,536 341,536 - Indirect costs 405,318 417,943 410,189 7,754 Non-department 37,383 39,635 40,319 (684) d3 Transfer to capital projects - 221,278 407,949 (186,671) Reserve for capital 858,592 726,219 726,219 - Reserve for economic development 113,653 115,423 116,221 (798) Reserve for NRH Centre 262,502 309,332 450,999 (141,667) Total other&reserves 2,018,984 2,171,366 2,493,432 (322,066) Total expenditures 8,022,142 8,176,372 8,217,421 (41,049) Net I ncrease $ - $ - $ 33,118 $ 33,118 Notes to other supplementary information are an integral part of this schedule. 87 Packet Pg. 252 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual GAS DEVELOPMENT FUND Year Ended September 30, 2015 Variance with Final Budget- Positive Original Final Actual (Negative) 4) REVENUES _ Bonuses General fund purposes $ - $ - $ 5,040 $ 5,040 Sub-total bonuses - - 5,040 5,040 LL Royalties/overrides General fund purposes 1,080,000 680,000 664,788 (15,212) Sub-total royalties/overrides 1,080,000 680,000 664,788 (15,212) Ln Other Right of way usage fees $ - $ 3,160 $ 3,160 - Interest income 16,300 16,300 14,230 (2,070) Sub-total other 16,300 19,460 17,390 (2,070) Total revenues 1,096,300 699,460 687,218 (12,242) A EXPENDITURES Operating Transfer to capital projects - 20,000 20,000 - Total expenditures - 20,000 20,000 - Net Increase (decrease) $ 1,096,300 $ 679,460 $ 667,218 $ (12,242) CL Notes to other supplementary information are an integral part of this schedule. LL Ln C) X 4- 0 88 Packet Pg. 253 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual PROMOTIONAL FUND Year Ended September 30, 2015 Variance with Final Budget- Positive Original Final Actual (Negative) 4) REVENUES Occupancy tax proceeds $ 215,000 $ 219,473 $ 232,793 $ 13,320 Interest revenue 1,400 2,544 3,436 892 Total revenues 216,400 222,017 236,229 14,212 LL EXPENDITURES Economic development 112,196 106,196 98,085 8,111 :3 Culture& leisure 103,989 103,989 90,546 13,443 Ln Non-departmental 215 6,215 215 6,000 Total expenditures 216,400 216,400 188,846 27,554 Net Increase $ - $ 5,617 $ 47,383 $ 41,766 2 Notes to other supplementary information are an integral part of this schedule. 4- 0 r_ U) 2 CL Ln C) U) M X 4- 0 89 Packet Pg. 254 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual DONATIONS FUND Year Ended September 30, 2015 Variance with Final Budget- Positive Original Final Actual (Negative) 4) REVENUES _ Contributions NRH water bills $ 57,737 $ 57,182 $ 59,251 $ 21069 Sub-total contributions 57,737 57,182 59,251 2,069 LL Donations _ Spay/neuter 15,000 13,808 18,206 4,398 :3 Shelter fund 46,500 49,650 48,958 (692) Ln Duncan 15,000 15,250 15,250 - Santa cops 4,000 5,800 5,000 (800) Sub-total donations 80,500 84,508 87,414 2,906 Proceeds Library book sales 8,500 9,540 9,547 7 0 LL Sub-total proceeds 8,500 9,540 9,547 7 Other Interest revenue 2,500 3,486 4,672 11186 M Other income 46,200 80,834 85,595 4,761 Appropriation of fund balance: U) Neighborhood services - 58,500 58,500 - Library 38,365 19,546 19,546 - Parks and Recreation 43,700 40,908 40,908 - Police 3,600 1,100 1,100 - Sub-total other 134,365 204,374 210,321 5,947 LL Total revenues 281,102 355,604 366,533 10,929 0 EXPENDITURES Ln Library-book collections 58,865 58,865 48,682 10,183 Neighborhood services Animal services 25,310 31,446 31,626 (180) Keep nrh beautiful 14,999 34,999 29,555 5,444 Municipal court-teen court 1,000 7,000 7,000 - Parks special events and arts 60,000 60,000 34,987 25,013 Police department 10,000 25,550 22,720 21830 Transfer to capital projects - 58,500 58,500 - Total expenditures 170,174 276,360 233,070 43,290 Net Increase $ 110,928 $ 79,244 $ 133,463 $ 54,219 Notes to other supplementary information are an integral part of this schedule. 90 Packet Pg. 255 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual SPECIAL INVESTIGATIONS FUND Year Ended September 30,2015 Variance with Final Budget- Positive Original Final Actual (Negative) REVENUES Forfeited funds $ 135,250 $ 129,019 $ 67,598 $ (61,421) AFIS reimbursements 13,500 12,759 12,759 - 911 telecom 116,000 116,068 178,779 62,711 LL Interest income 2,100 3,357 4,563 1,206 Other income - - 78 78 Appropriations of fund balance 28,650 68,296 68,296 - Total revenues 295,500 329,499 332,073 2,574 Ln EXPENDITURES CM Federal forfeited funds 110,000 134,889 61,178 73,711 State forfeited funds 55,000 55,000 31,016 23,984 Local forfeited funds 1,000 1,500 1,000 500 AFIS maintenance&equipment 13,500 18,685 18,357 328 2 LL 911 telecom 61,000 61,058 61,058 - Reserve for city hall project: 911 telecom 55,000 55,010 55,010 - Total expenditures 295,500 326,142 227,619 98,523 Net Increase $ - $ 3,357 $ 104,454 $ 101,097 CL Notes to other supplementary information are an integral part of this schedule. LL Ln CM C) U) M X 4- 0 C) 91 Packet Pg. 256 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual DRAINAGE UTILITY FUND Year Ended September 30, 2015 Variance with Final Budget- Positive Original Final Actual (Negative) REVENUES Drainage fees $ 860,000 $ 871,386 $ 860,836 $ (10,550) Interest income 3,900 4,345 5,948 1,603 Appropriations of fund balance - 800,000 800,000 - LL Total revenues 863,900 1,675,731 1,666,784 (8,947) EXPENDITURES Debt service (transfers out) 565,838 565,838 565,838 - Ln Other expenditures 35,000 839,372 833,557 5,815 CM Total expenditures 600,838 1,405,210 1,399,395 5,815 Net Increase $ 263,062 $ 270,521 $ 267,389 $ (3,132) Notes to other supplementary information are an integral part of this schedule. 2 4- 0 r_ M U) 2 CL Ln CM C) U) M X 4- 0 92 Packet Pg. 257 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual CRIME CONTROL DISTRICT Year Ended September 30, 2015 Variance with Final Budget- Positive Original Final Actual (Negative) REVENUES _ Sales tax $ 4,547,801 $ 4,598,460 $ 4,624,993 $ 26,533 Franchise tax 81,000 95,538 95,538 - Interest income 2,200 2,200 2,140 (60) SRO Reimbursement(BISD) 174,244 174,244 174,244 - Previous year encumbrances 61,922 17,439 17,439 - Total revenues 4,867,167 4,887,881 4,914,354 26,473 Ln EXPENDITURES Operating Administrative services 747,467 744,787 710,799 33,988 Investigations 471,496 470,035 418,933 51,102 Uniform patrol 2,844,326 2,838,032 2,749,387 88,645 LL Technical services 521,810 522,104 528,698 (61594) Property Evidence 147,338 150,160 156,317 (6,157) Sub-total operating 4,732,437 4,725,118 4,564,134 160,984 Other& Reserves Partner agency funding 57,205 65,294 61,146 41148 Other 77,525 84,844 77,525 7,319 Indirect costs - 12,625 4,871 7,754 Total other&reserves 134,730 162,763 143,542 19,221 Total expenditures 4,867,167 4,887,881 4,707,676 180,205 Net Increase (Decrease) $ - $ - $ 206,678 $ 206,678 Ln C) Notes to other supplementary information are an integral part of this schedule. U) M X 4- 0 93 Packet Pg. 258 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenditures, and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual TRAFFIC SAFETY FUND Year Ended September 30, 2015 Variance with Final Budget- Positive Original Final Actual (Negative) 4) REVENUES _ Gross fine revenue $ 939,175 $ 1,147,321 $ 1,226,567 $ 79,246 Interest income 900 2,249 3,384 11135 LL Sub-total 940,075 1,149,570 1,229,951 80,381 EXPENDITURES Contractor Payments 612,000 612,000 601,821 10,179 Program Administration 188,906 194,350 191,977 2,373 Ln Payment to State 70,700 170,486 216,385 (45,899) CM Traffic Enforcement - 37,522 26,373 11,149 Pedestrian Safety 15,224 15,224 15,033 191 Total expenditures 886,830 1,029,582 1,051,589 (22,007) mo Net increase $ 53,245 $ 119,988 $ 178,362 $ 102,388 � 4- 0 r_ Notes to other supplementary information are an integral part of this schedule. U) 2 CL Ln C) U) M X M 4- 0 94 Packet Pg. 259 0 a� S Ln CD 2A 4- 0 r_ 0 m r_ 4) U) CL to Ln CD C) U) m x 4- 0 C) This page intentionally left blank. 95 Packet Pg. 260 F.1.a 0 Ln a� INTERNAL SERVICE FUNDS CM Facility and Construction Services Fund — To account for building maintenance and repair services provided to numerous departments located at various sites throughout the City. Facility and Construction Services Fund operations are financed by charges to user departments. 2 Fleet Services Fund — To account for the maintenance, repair service, and replacement of vehicles and equipment provided to numerous departments responsible for the operation of City vehicles and equipment. Fleet Services Fund operations are financed by charges to user departments. Self-Insurance Fund —To account for the payment of substantially all claims except for fire insurance coverage and employee life insurance coverage. Self-Insurance Fund operations are financed by charges to user departments and employee contributions. 0. Information Services Fund — To account for the acquisition, maintenance, and support of computer and telephone hardware and software. Information Services Fund operations are financed by charges to user departments. toLn CM U) M X 4- 0 to 96 Packet Pg. 261 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Combining Statement of Net Position INTERNAL SERVICE September 30,2015 Facilities and Construction Information Total Internal Services Fleet Services Self Insurance Technology Service ASSETS Current a� Cash and cash equivalents $ 581,706 $ 530,805 $ 734,522 $ 451,812 $ 2,298,845 Investments 1,398,353 1,547,669 1,311,843 1,117,549 5,375,414 LL Accounts receivable, net of allowance: Other 498 14,960 9,023 24,481 Interest receivable 2,273 2,468 7,520 1,853 14,114 Prepaid items 3,690 193,952 155,704 353,346 Ln Inventories,at cost 35,796 85,715 121,511 Total current assets 2,022,316 2,181,617 2,247,837 1,735,941 8,187,711 Noncurrent Restricted assets: Cash and cash equivalents 3,377 98,796 1,538,662 45,474 1,686,309 2 LL Investments 3,414,794 3,414,794 Capital assets,at cost: r_ Building and improvements 135,455 135,455 Other improvemen 439,178 602,769 1,041,947 Machinery and equipment - 6,983,844 17,312 2,520,927 9,522,083 Accumulated depreciation (354,088) (4,325,751) (17,312) (2,062,732) (6,759,883) CL Net capital assets 220,545 2,658,093 - 1,060,964 3,939,602 Total noncurrent assets 223,922 2,756,889 4,953,456 1,106,438 9,040,705 Total assets 2,246,238 4,938,506 7,201,293 2,842,379 17,228,416 DEFERRED OUTFLOWS OF RESOURCES Pension contributions 74,289 86,734 47,744 86,910 295,677 LL Pension actuarial losses 38,321 36,089 18,603 41,670 134,683 Ln Total deferred outflows of resources 112,610 122,823 66,347 128,580 430,360 LIABILITIES U) Current X Accounts payable and accrued expenses 133,515 81,712 1,289,292 48,791 1,553,310 Other current liabilities 277 40 14,018 14,335 Compensated absences 8,039 7,554 6,942 13,194 35,729 Unearned revenue 900 - 900 Total current liabilities 142,731 89,306 1,310,252 61,985 1,604,274 Noncurrent 2 Compensated absences 47,358 48,566 45,573 81,785 223,282 Other post employment benefits obligation 210,940 237,342 120,778 245,717 814,777 Net pension liability 403,825 470,136 258,598 471,944 1,604,503 _ Total noncurrent liabilities 662,123 756,044 424,949 799,446 2,642,562 Total liabilities 804,854 845,350 1,735,201 861,431 4,246,836 DEFERRED INFLOWS OF RESOURCES Excess pension investment earnings 31,256 29,436 15,173 33,988 109,853 Total deferred outflows of resources 31,256 29,436 15,173 33,988 109,853 NET POSITION Net investment in capital assets 220,545 2,665,942 1,060,964 3,947,451 Unrestricted 1,302,193 1,520,601 5,517,266 1,014,576 9,354,636 Total net position $ 1,522,738 $ 4,186,543 $ 5,517,266 $ 2,075,540 $ 13,302,087 97 Packet Pg. 262 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Combining Statement of Revenues, Expenses,and Changes in Net Position INTERNAL SERVICE Year Ended September 30,2015 Facilities and Information Total Internal Construction Fleet Services Self Insurance Technology Service OPERATING REVENUES Other intergovernmental $ $ $ - $ 14,902 $ 14,902 Internal service revenues Risk management 9,753,876 9,753,876 Facilities and fleet management 2,655,133 3,514,116 - - 6,169,249 Information systems management - - - 2,674,154 2,674,154 Miscellaneous revenues 101,392 30,488 281,063 154,887 567,830 Total operating revenues 2,756,525 3,544,604 10,034,939 2,843,943 19,180,011 Ln OPERATING EXPENSES Q Claims - - 9,520,100 - 9,520,100 Contractual services 919,463 93,330 538,099 330,707 1,881,599 Personnel services 1,077,757 933,252 505,801 1,104,953 3,621,763 Repairs and maintenance 329,831 188,266 4,359 1,104,886 1,627,342 A LL Supplies 61,981 890,352 2,629 166,543 1,121,505 - Depreciation 42,010 614,816 - 226,123 882,949 Total operating expenses 2,431,042 2,720,016 10,570,988 2,933,212 18,655,258 °2 Operating income(loss) 325,483 824,588 (536,049) (89,269) 524,753 NONOPERATING REVENUES(EXPENSES) U) Investment income 12,457 13,732 45,326 7,436 78,951 CL Gain on disposal of assets 530 48,699 - 2,335 51,564 Total nonoperating revenues(expenses) 12,987 62,431 45,326 9,771 130,515 Income(loss)before transfers 338,470 887,019 (490,723) (79,498) 655,268 TRANSFERS LL Transfers in - 71,040 252,385 323,425 Transfers out (319,433) (777,714) (1,228,944) (2,326,091) Ln Total transfers-net (319,433) (706,674) (976,559) (2,002,666) Change in net position 19,037 180,345 (490,723) (1,056,057) (1,347,398) u) Net position-beginning of year(as previously reported) 1,756,724 4,299,955 6,169,450 3,427,003 15,653,132 X Adjustment to beginning net position,accounting 12 U) standard implementation (253,023) (293,757) (161,461) (295,406) (1,003,647) Net position-beginning of year(as restated) 1,503,701 4,006,198 6,007,989 3,131,597 14,649,485 Net position-end of year $ 1,522,738 $ 4,186,543 $ 5,517,266 $ 2,075,540 $ 13,302,087 4- 0 C3 98 Packet Pg. 263 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Combining Statement of Cash Flows INTERNAL SERVICE FUNDS Year Ended September 30,2015 Facilities and Construction Information Services Fleet Services Self Insurance Technology Totals Cash flows from operating activities: Receipts from interfund services provided $ 2,655,133 $ 3,514,116 $ 9,753,876 $ 2,674,154 $ 18,597,279 Other operating revenue 111,323 33,843 281,063 180,222 606,451 a� Payments to suppliers (1,280,302) (1,156,900) (9,788,804) (1,602,902) (13,828,908) Payments to employees (1,062,558) (958,759) (483,136) (1,066,603) (3,571,056) Net cash provided by(used for)operating activities 423,596 1,432,300 (237,001) 184,871 1,803,766 Cash flows from noncapital financing activities: Transfers from other funds 71,040 252,385 323,425 Ln Transfers to other funds (319,433) (777,714) (1,228,944) (2,326,091) Net cash provided by(used for)noncapital and CM related financing activities (319,433) (706,674) (976,559) (2,002,666) Cash flows from capital and related financing activities: Acquisition and construction of capital assets (21,865) (686,375) - (708,240) Proceeds from sale of capital assets 530 48,699 2,335 51,564 4- Net cash provided by(used for)capital and related financing activities (21,335) (637,676) 2,335 (656,676) Cash flows from investing activities: Purchase of Investments (788,985) (865,160) (2,423,448) (345,987) (4,423,580) Proceeds from the sale of investments 646,380 723,330 2,443,932 818,748 4,632,390 U) Interest and dividends received 12,298 13,851 45,504 8,149 79,802 CL Net cash provided by investing activities (130,307) (127,979) 65,988 480,910 288,612 Net increase(decrease)in cash and cash equivalents (47,479) (40,029) (171,013) (308,443) (566,964) Cash and cash equivalents beginning of year 632,562 669,630 2,444,197 805,729 4,552,118 Cash and cash equivalents end of year $ 585,083 $ 629,601 $ 2,273,184 $ 497,286 $ 3,985,154 Ln C3 Reconciliation of operating income(loss)to net cash CM provided by(used for)operating activities: U) M Operating income(loss) $ 325,483 $ 824,588 $ (536,049) $ (89,269) $ 524,753 X Adjustments to reconcile operating income(loss)to net U) cash provided by(used for)operating activities: Depreciation expense 42,010 614,816 226,123 882,949 Other expense - - (3,351) - (3,351) (Increase)decrease in accounts receivable 9,031 3,355 10,433 22,819 (Increase)decrease in inventories 913 4,019 - - 4,932 (Increase)decrease in prepaid items 678 - 21,121 10,004 31,803 4- Increase(decrease)in compensating absences 4,103 (34,667) 16,469 22,997 8,902 Increase(decrease)in other post employment benefits 20,372 20,073 10,286 23,267 73,998 Increase(decrease)in net pension liability (10,779) (10,150) (5,232) (11,720) (37,881) Increase(decrease)in unearned revenues 900 - - 900 Increase(decrease)in accounts payable 29,382 11,029 258,613 (10,770) 288,254 g' Increase(decrease)in accrued liabilities 1,503 (763) 1,142 3,806 5,688 Total adjustments 98,113 607,712 299,048 274,140 1,279,013 Net cash provided by(used for)operating activities $ 423,596 $ 1,432,300 $ (237,001) $ 184,871 $ 1,803,766 99 Packet Pg. 264 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Notes to Other Supplementary Information September 30,2015 A. General Debt Service Fund Budget-to-Actual Reconciliation An explanation of the differences between budgetary inflows and outflows and revenues and expenditures determined in accordance with generally accepted accounting principles follows: Net increase(decrease)to budgetary unreserved undesignated fund balance $ 48,052 O The City budgets"Appropriations of Fund Balances"revenues as a inflow of resources but for GAAP purposes these inflows were recognized in prior periods. (648,073) Outflows of sources for prepaid expenditures for budgetary purposes are immediately recognized as an outflow upon remittance of payment in budgetary basis. GAAP statements delay LL expenditure recognition until the period of coverage. 748 Total"Net Change in Fund Balance"from the Statement of Revenues, Expenditures,and Changes in Fund Balance-Governmental Fund--General Debt Service $ (599,273) Ln B. Parks and Recreation Development Corporation Budget-to-Actual Reconciliation An explanation of the differences between budgetary inflows and outflows and revenues and expenditures determined in accordance with generally accepted accounting principles follows: Net increase(decrease)to budgetary unreserved undesignated fund balance $ 33,118 U) The City budgets specific"Reserves"expenditures as a outflow but in GAAP statements it is not an iz expenditure: Net Operations from Parks Maintenance,Tennis Center,and Recreation Centre for future capital or operational needs 1,177,218 Increase(decrease)in intergovernmental shared services revenue are not considered a resource/inflow for budgetary recognition because payment for services will be received in subsequent fiscal year. 406,850 U) Increase(decrease)in miscellaneous revenue are not considered a resource/inflow for budgetary recognition because payment for services will be received in subsequent fiscal year. (2,180) Outflows of sources for prepaid expenditures for budgetary purposes are immediately recognized as an outflow upon remittance of payment in budgetary basis. GAAP statements delay expenditure recognition until the period of coverage. 171 LL Special funded projects expenditures are appropriated through long range capital improvement budget (650,086) in which segregated and specific funding is appropriated outside of the operating budget Ln Total"Net Change in Fund Balance"from the Statement of Revenues, Expenditures,and Changes in Fund Balance-Governmental Fund--Parks and Recreation Development Corporation $ 965,091 X C. Gas Development Fund Budget-to-Actual Reconciliation 4) U) An explanation of the differences between budgetary inflows and outflows and revenues and expenditures determined in accordance with generally accepted accounting principles follows: Net increase(decrease)to budgetary unreserved undesignated fund balance $ 667,218 ig 0 Increase(decrease)in investment fair value changes and interest unavailable are not considered a resource/inflow for budgetary recognition (1,832) 4— Special funded projects inflows/resources are appropriated through long range capital improvement budget O in which segregated and specific funding is appropriated outside of the operating budget (57,693) C3 Total"Net Change in Fund Balance"from the Combining Statement of Revenues, Expenditures,and Changes in Fund Balance-Governmental Funds--Gas Development Fund $ 607,693 as 100 Packet Pg. 265 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Notes to Other Supplementary Information September 30,2015 D. Promotional Fund Budget-to-Actual Reconciliation An explanation of the differences between budgetary inflows and outflows and revenues and expenditures determined in accordance with generally accepted accounting principles follows: Net increase(decrease)to budgetary unreserved undesignated fund balance $ 47,383 O Increase(decrease)in investment fair value changes and interest unavailable are not considered a resource/inflow for budgetary recognition (367) Outflows of sources for prepaid expenditures for budgetary purposes are immediately recognized as an outflow upon remittance of payment in budgetary basis. GAAP statements delay expenditure recognition until the period of coverage. (184) LL Total"Net Change in Fund Balance"from the Combining Statement of Revenues, Expenditures,and Changes in Fund Balance-Non-Major Governmental Funds--Promotional Fund $ 46,832 Ln E. Donations Fund Budget-to-Actual Reconciliation An explanation of the differences between budgetary inflows and outflows and revenues and expenditures determined in accordance with generally accepted accounting principles follows: Net increase(decrease)to budgetary unreserved undesignated fund balance $ 133,463 U) The City budgets"appropriations from fund balance"as a resource/inflow but in GAAP iz statements it is not a revenue or inflow source for current year revenue recognition (120,054) r_ Increase(decrease)in investment fair value changes and interest unavailable are not considered a resource/inflow for budgetary recognition (586) Outflows of sources for prepaid expenditures for budgetary purposes are immediately U) recognized as an outflow upon remittance of payment in budgetary basis. GAAP statements delay expenditure recognition until the period of coverage. (391) Total"Net Change in Fund Balance"from the Combining Statement of Revenues, Expenditures,and Changes in Fund Balance-Non-Major Governmental Funds--Donations Fund $ 12,432 F. Special Investigation Fund Budget-to-Actual Reconciliation LL C3 An explanation of the differences between budgetary inflows and outflows and revenues and expenditures determined in accordance with generally Ln accepted accounting principles follows: Net increase(decrease)to budgetary unreserved undesignated fund balance $ 104,454 U) M X The City budgets"appropriations from fund balance"as a resource/inflow but in GAAP statements it is not a revenue or inflow source for current year revenue recognition (68,296) ua The City budgets specific"Reserves"expenditures as a outflow but in GAAP statements it is not an expenditure: 911 Telecom;Automated Fingerprint ID System; Reserves 55,010 Increase(decrease)in investment fair value changes and interest unavailable are not considered a resource/inflow for budgetary recognition (656) Increase(decrease)in miscellaneous revenue are not considered a resource/inflow for budgetary recognition because payment for services will be received in subsequent fiscal year. 1,081 Outflows of sources for prepaid expenditures for budgetary purposes are immediately recognized as an outflow upon remittance of payment in budgetary basis. GAAP statements delay expenditure recognition until the period of coverage. (122) Special funded projects expenditures are appropriated through long range capital improvement budget (158,649) in which segregated and specific funding is appropriated outside of the operating budget Total"Net Change in Fund Balance"from the Combining Statement of Revenues, Expenditures,and Changes in Fund Balance-Non-Major Governmental Funds--Special Investigation Fund $ (67,178) 101 Packet Pg. 266 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Notes to Other Supplementary Information September 30,2015 G. Drainage Utility Fund Budget-to-Actual Reconciliation An explanation of the differences between budgetary inflows and outflows and revenues and expenditures determined in accordance with generally ,m accepted accounting principles follows: O a Net increase(decrease)to budgetary unreserved undesignated fund balance $ 267,389 as The City budgets"appropriations from fund balance"as a resource/inflow but in GAAP statements it is not a revenue or inflow source for current year revenue recognition (800,000) OC M Increase(decrease)in investment fair value changes and interest unavailable are not considered a resource/inflow (2,633) LL for budgetary recognition Total"Net Change in Fund Balance"from the Combining Statement of Revenues, Expenditures,and Changes in Fund Balance-Non-Major Governmental Funds--Drainage Utility Fund $ (535,244) Ln H. Crime Control District Fund Budget-to-Actual Reconciliation An explanation of the differences between budgetary inflows and outflows and revenues and expenditures determined in accordance with generally accepted accounting principles follows: Net increase(decrease)to budgetary unreserved undesignated fund balance $ 206,678 U) The City budgets"appropriations from fund balance"(prior year encumbrance)as a resource/inflow but in GAAP iz statements it is not a revenue or inflow source for current year revenue recognition (17,439) O r_ Increase(decrease)in investment fair value changes and interest unavailable are not considered a resource/inflow for budgetary recognition 743 Outflows of sources for prepaid expenditures for budgetary purposes are immediately U) recognized as an outflow upon remittance of payment in budgetary basis. GAAP statements delay expenditure recognition until the period of coverage. (7,669) The City budgets specific"Reserves"expenditures as a outflow but in GAAP statements it is not an expenditure: Investigations (4,871) Total"Net Change in Fund Balance"from the Combining Statement of Revenues, Expenditures,and LL Changes in Fund Balance-Non-Major Governmental Funds--Crime Control District Fund $ 177,442 < Ln I. Traffic Safety Fund Budget-to-Actual Reconciliation An explanation of the differences between budgetary inflows and outflows and revenues and expenditures determined in accordance with generally accepted accounting principles follows: X Net increase(decrease)to budgetary unreserved undesignated fund balance $ 178,362 ua Increase(decrease)in investment fair value changes and interest unavailable are not considered a resource/inflow for budgetary recognition 284 Total"Net Change in Fund Balance"from the Combining Statement of Revenues, Expenditures,and Changes in Fund Balance-Non-Major Governmental Funds--Traffic Safety Fund $ 178,646 J. Utility Fund Budget-to-Actual Reconciliation - An explanation of the differences between budgetary inflows and outflows and revenues and expenses determined in accordance with generally accepted accounting principles follows: Net increase(decrease)to budgetary net position $ (817,599) Depreciation expense is a"GAAP"recognized expense and does not represent an actual outflow of resources in the budgetary appropriations. (3,355,476) Certain expenses representing long term liability and the related expense recognition in"GAAP"is not recognized as an actual outflow until resources are disbursed for the activity: Other Post Employment Benefits, Net Pension Liability,and Compensating Balances. 15,060 102 Packet Pg. 267 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Notes to Other Supplementary Information September 30,2015 Increase(decrease)in investment fair value changes are not considered a resource/inflow for budgetary recognition 9,634 Gain(loss)on disposal of assets represents"GAAP"non-cash transactions and are not reported in the budgetary basis schedule. 8,600 O Outflows of resources for prepaid expenses for budgetary purposes are immediately recognized as an outflow upon remittance of payment in budgetary basis. GAAP statements delay expense recognition until the period of coverage. (502,094) OC M Outflows of resources for capital expenses for budgetary purposes are immediately recognized as an outflow upon remittance of payment for budgetary purposes. GAAP Statements delay expense recognization until LL the period of coverage through assessing depreciation. 2,654,060 Outflows of resources that represent debt service payments and related amortized costs for budgetary purposes are recognized as expense in budget basis statements 781,267 Ln Inflows of resources that represent accrued revenue and not cash receipts are not recognized as revenues in the budget basis statements. 381,316 Special funded projects are appropriated through long range capital improvement budget _ in which segregated and specific funding is appropriated outside of the operating budget (3,398,208) U) Total"Net Change in Net Position from the Statement of Revenues, Expenses,and iz Changes in Net Position--Proprietary Funds--Utility Fund $ (4,223,440) r_ K. Aquatic Park Fund Budget-to-Actual Reconciliation An explanation of the differences between budgetary inflows and outflows and revenues and expenses determined in accordance with generally accepted accounting principles follows: U) 2 Net increase(decrease)to budgetary net position $ (62,973) The City budgets"appropriations from fund balance"as a resource/inflow but in GAAP statements it is not a revenue or inflow source for current year revenue recognition (575,000) Depreciation expense is a"GAAP"recognized expense and does not represent an actual outflow LL of resources in the budgetary appropriations. (773,895) Ln Certain expenses representing long term liability and the related expense recognition in"GAAP"is not recognized as an actual outflow until resources are disbursed for the activity: Other Post Employment Benefits, Net Pension Liability,and Compensating Balances. (16,177) X Increase(decrease)in investment fair value changes are not considered a resource/inflow 4) for budgetary recognition 211 U) Outflows of resources for prepaid expenses for budgetary purposes are immediately recognized as an outflow upon remittance of payment in budgetary basis. GAAP statements delay expense recognition until the period of coverage. 3,418 Outflows of resources that represent debt service principal payments for budgetary purposes are recognized as expense in budget basis statements 580,588 4— Special funded projects are appropriated through long range capital improvement budget O in which segregated and specific funding is appropriated outside of the operating budget 514,918 C3 Total"Net Change in Net Position from the Statement of Revenues, Expenses,and Changes in Net Position--Proprietary Funds--Aquatic Park $ (328,910) a) 103 Packet Pg. 268 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Notes to Other Supplementary Information September 30,2015 L. Golf Fund Budget-to-Actual Reconciliation An explanation of the differences between budgetary inflows and outflows and revenues and expenses determined in accordance with generally accepted accounting principles follows: O a Net increase(decrease)to budgetary net position $ 28,626 as Depreciation expense is a"GAAP"recognized expense and does not represent an actual outflow of resources in the budgetary appropriations. (411,449) OC M Outflows for advances given to other funds are not recognized as expense in LL GAAP statements;only recognized as reduction of an liability on statement of net position and not a transfer out (147,760) The City budgets specific"Reserves"Expenses as a outflow but in GAAP statements it is not an expense: Reserve for Capital 5,385 Ln Increase(decrease)in investment fair value changes are not considered a resource/inflow CM for budgetary recognition 518 Outflows of resources representing expenses of prior year adjustment are recognized for budgetary _ purposes as reduction in reserves prior transferred. This amount represents audit adjustments that effect a prior period and prior budgetary period. 75,065 ua iz Outflows of resources that represent debt service principal payments for budgetary purposes are recognized as expense in budget basis statements 395,426 O Total"Net Change in Net Position from the Statement of Revenues, Expenses,and Changes in Net Position--Proprietary Funds--Golf Fund $ (54,189) U) M. Facilities and Construction Fund Budget-to-Actual Reconciliation 2 CL An explanation of the differences between budgetary inflows and outflows and revenues and expenses determined in accordance with generally M to accepted accounting principles follows: Net increase(decrease)to budgetary net position $ 278,691 LL Depreciation expense is a"GAAP"recognized expense and does not represent an actual outflow of resources in the budgetary appropriations. (42,010) Ln Certain expenses representing long term liability and the related expense recognition in"GAAP"is not recognized CM as an actual outflow until resources are disbursed for the activity: Other Post Employment Benefits, Net Pension Liability,and Compensating Balances. (13,696) Outflows of resources for prepaid expenses for budgetary purposes are immediately U) recognized as an outflow upon remittance of payment in budgetary basis. GAAP statements delay expense recognition until the period of coverage. 22,685 Increase(decrease)in investment fair value changes are not considered a resource/inflow for budgetary recognition. (1,838) iE The City budgets"appropriations from fund balance"as a resource/inflow but in GAAP statements it is not a revenue or inflow source for current year revenue recognition. (240,485) The City budgets specific"Reserves"Expenses as a outflow but in GAAP statements it is not an expense: Reserve for Capital. 20,327 Special funded projects are appropriated through long range capital improvement budget in which segregated and specific funding is appropriated outside of the operating budget. (4,637) Total"Net Change in Net Position from the Combining Statement of Revenues, Expenses,and Changes in Net Position--Internal Service Funds--Facilities and Construction Fund $ 19,037 104 Packet Pg. 269 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Notes to Other Supplementary Information September 30,2015 N. Fleet Services Fund Budget-to-Actual Reconciliation An explanation of the differences between budgetary inflows and outflows and revenues and expenses determined in accordance with generally accepted accounting principles follows: Net increase(decrease)to budgetary net position $ 583,769 O Depreciation expense is a"GAAP"recognized expense and does not represent an actual outflow of resources in the budgetary appropriations. (614,816) r_ Certain expenses representing long term liability and the related expense recognition in"GAAP"is not recognized as an actual outflow until resources are disbursed for the activity: Other Post Employment Benefits, Net P LL ension Liability,and Compensating Balances. 24,745 Increase(decrease)in investment fair value changes are not considered a resource/inflow for budgetary recognition (3,073) Ln Gain(loss)on disposal of assets represents"GAAP"non-cash transactions and are not reported in the budgetary basis schedule (6,515) The City budgets"appropriations from fund balance"as a resource/inflow but in GAAP statements it is not a revenue or inflow source for current year revenue recognition (542,264) The City budgets specific"Reserves"Expenses as a outflow but in GAAP statements it is not an ua expense: Reserve for Capital 49,173 LL 4— O Resources obtained for special funded projects are appropriated through long range capital improvement budget in which separate from the operating budget 689,374 Outflows of resources for prepaid expenses for budgetary purposes are immediately recognized as an outflow upon remittance of payment in budgetary basis. GAAP statements delay expense recognition until the period of coverage (48) CL Total"Net Change in Net Position from the Combining Statement of Revenues, Expenses,and Changes in Net Position--Internal Service Funds--Fleet Fund $ 180,345 O. Self Insurance Fund Budget-to-Actual Reconciliation .� LL An explanation of the differences between budgetary inflows and outflows and revenues and expenses determined in accordance with generally accepted accounting principles follows: Ln T_ Net increase(decrease)to budgetary net position $ (339,392) U) Certain expenses representing long term liability and the related expense recognition in"GAAP"is not recognized as an actual outflow until resources are disbursed for the activity: Other Post Employment Benefits, Net 4) Pension Liability,and Compensating Balances. (21,522) U) Increase(decrease)in investment fair value changes are not considered a resource/inflow for budgetary recognition (8,688) The City budgets"appropriations from fund balance"as a resource/inflow but in GAAP statements it is not a revenue or inflow source for current year revenue recognition (100,000) °® Outflows of resources for prepaid expenses for budgetary purposes are immediately recognized as an outflow upon remittance of payment in budgetary basis. GAAP statements delay O expense recognition until the period of coverage (21,121) C3 Total"Net Change in Net Position from the Combining Statement of Revenues, Expenses,and Changes in Net Position--Internal Service Funds--Self Insurance Fund $ (490,723) a) 105 Packet Pg. 270 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Notes to Other Supplementary Information September 30,2015 P. Information Systems Fund Budget-to-Actual Reconciliation An explanation of the differences between budgetary inflows and outflows and revenues and Expenses determined in accordance with generally accepted accounting principles follows: Net increase(decrease)to budgetary net position $ 559,881 O Depreciation expense is a"GAAP"recognized expense and does not represent an actual outflow of resources in the budgetary appropriations. (226,123) r_ Certain expenses representing long term liability and the related expense recognition in"GAAP"is not recognized as an actual outflow until resources are disbursed for the activity: Other Post Employment Benefits, Net Pension Liability,and Compensating Balances. (34,544) LL Increase(decrease)in investment fair value changes are not considered a resource/inflow for budgetary recognition (4,619) Ln Gain(loss)on disposal of assets represents"GAAP"non-cash transactions and are not reported in the budgetary basis schedule (612) Outflows of resources for prepaid expenses for budgetary purposes are immediately recognized as an outflow upon remittance of payment in budgetary basis. GAAP statements delay _ expense recognition until the period of coverage (9,813) U) The City budgets"appropriations from fund balance"as a resource/inflow but in GAAP iz statements it is not a revenue or inflow source for current year revenue recognition (1,339,373) r_ Outflows of resources for prepaid Expenses for budgetary purposes are immediately recognized as an outflow upon remittance of payment in budgetary basis. GAAP statements delay expense recognition until the period of coverage (854) U) Total"Net Change in Net Position from the Combining Statement of Revenues, Expenses,and Changes in Net Position--Internal Service Funds--Information Systems Fund _L___(1,056,057) a. M to LL Ln C3 U) M X U) 4— O C3 106 Packet Pg. 271 F.1.a 0 a� S Ln 2 4- 0 r_ 0 PROPRIETARY FUNDS OTHER SUPPLEMENTARY INFORMATION to Ln x 4- 0 107 Packet Pg. 272 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Schedule of Revenues, Expenses,and Changes in Net Position-Budget(Non-GAAP Basis)and Actual UTILITY FUND Year Ended September 30,2015 Variance with Final Budget- Positive Original Final Actual (Negative) REVENUES Water sales and charges Water sales $ 20,099,458 $ 18,474,864 $ 18,490,684 $ 15,820 S Water taps 34,412 34,412 28,715 (5,697) LL Water inspection fees 11,000 33,213 33,770 557 Sub-total 20,144,870 18,542,489 18,553,169 10,680 Sewer sales and charges Ln Sewer sales 10,320,773 10,350,856 9,838,360 (512,496) Sewer taps 9,683 9,683 9,825 142 � Sewer inspection fees 9,000 27,161 27,161 - Sub-total 10,339,456 10,387,700 9,875,346 (512,354) Miscellaneous 2A Interest income 52,700 71,878 94,614 22,736 LL 4- Service charges 102,300 86,613 88,952 2,339 0 Late charges 484,359 431,752 432,123 371 0 Miscellaneous 18,000 43,148 43,618 470 Joint use reimbursement-Watauga 108,817 108,817 60,439 (48,378) Subdivision meter revenue 29,212 44,145 43,380 (765) Sub-total 795,388 786,353 763,126 (23,227) .. Appropriation of fund balance Previous year encumbrances 1,322,000 1,322,000 Sub-total - 1,322,000 1,322,000 .� LL Total revenues $ 31,279,714 $ 31,038,542 $ 30,513,641 $ (524,901) EXPENSES Ln Operating Administration $ 307,720 $ 307,153 $ 296,621 $ 10,532 U) Development 856,769 838,505 791,669 46,836 X Right of way maintenance 200,000 155,000 149,327 5,673 12 U) Sub-total 1,364,489 1,300,658 1,237,617 63,041 Water Services Water operations 4,652,964 4,383,887 4,199,796 184,091 Purchase of water FTW 5,018,705 4,281,717 4,726,223 (444,506) 2 Purchase of water TRA 5,000,000 4,630,568 5,059,788 (429,220) 0� Z Sub-total 14,671,669 13,296,172 13,985,807 (689,635) - Sewer Services Sewer operations 1,386,320 1,383,487 1,285,498 97,989 Sewer treatment FTW 1,420,242 1,423,100 1,307,619 115,481 Sewer treatment TRA 3,572,771 3,602,954 3,602,954 - Sub-total 6,379,333 6,409,541 6,196,071 213,470 108 Packet Pg. 273 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Schedule of Revenues, Expenses,and Changes in Net Position-Budget(Non-GAAP Basis)and Actual UTILITY FUND Year Ended September 30,2015 Variance with Final Budget- Positive Original Final Actual (Negative) Finance/Utility Collections Meter reading 471,501 474,993 464,214 10,779 Utility billing/customer service 843,335 840,635 809,496 31,139 LL Utility collection services 288,922 288,386 282,857 5,529 Accounting services 395,312 374,161 361,333 12,828 Budget&research 209,292 209,470 206,950 2,520 Sub-total 2,208,362 2,187,645 2,124,850 62,795 Ln Building services 1,598,063 1,598,063 1,598,063 Non-departmental 342,323 282,737 219,211 63,526 Sub-total Departments $ 26,564,239 $ 25,074,816 $ 25,361,619 $ (286,803) >_ OTHER&RESERVES 0 Debt service $ 1,091,530 $ 1,091,530 $ 1,091,823 $ (293) 2 LL Franchise fee 912,607 852,104 857,706 (5,602) 0 Indirect costs 2,090,315 2,090,315 2,090,315 r_ 0 Payment in lieu of taxes 382,777 382,777 382,777 Transfer from utility cip reserve to information U) services fund 175,000 175,000 175,000 2 CL Contribution to equipment services 50,000 50,000 50,000 Reserve for capital 13,246 1,322,000 1,322,000 to to 00 Total other&reserves $ 4,715,475 $ 5,963,726 $ 5,969,621 $ (5,895) Total expenses $ 31,279,714 $ 31,038,542 $ 31,331,240 $ (292,698) LL Balance $ - $ - $ (817,599) $ (817,599) Notes to other supplementary information are an integral part of this schedule. U) M X 4- 0 C3 109 Packet Pg. 274 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenses, and Changes in Net Position-Budget(Non-GAAP Basis)and Actual AQUATIC PARK Year Ended September 30, 2015 Variance with Final Budget- Positive Original Final Actual (Negative) REVENUES Operating Admissions $ 3,442,500 $ 3,234,779 $ 3,109,013 $ (125,766) Food and beverage 897,600 856,669 805,873 (50,796) Merchandise 147,900 133,728 127,737 (5,991) Rentals 156,099 153,458 148,066 (5,392) Aquatic classes/special events - 7,881 3,823 (4,058) Ln Sub-total 4,644,099 4,386,515 4,194,512 (192,003) Other revenues Interest income 7,600 9,866 13,337 31471 Other 17,200 40,407 46,200 5,793 Sub-total 24,800 50,273 59,537 9,264 LL Sub-total revenues 4,668,899 4,436,788 4,254,049 (182,739) Appropriation of fund balance Appropriation of fund balance - 575,000 575,000 - Sub-total - 575,000 575,000 - Total revenues $ 4,668,899 $ 5,011,788 $ 4,829,049 $ (182,739) EXPENSES CL Operating General services&utilities $ 887,078 $ 824,577 $ 790,280 $ 34,297 Public grounds/aquatics/maintenance 1,224,468 1,161,611 1,155,830 5,781 Business&office administration 573,321 585,840 558,520 27,320 LL Gift shop/concessions 569,660 550,598 535,119 15,479 0 Ln Sales/special events/admissions 272,212 259,865 230,591 29,274 Sub-total 3,526,739 3,382,491 3,270,340 112,151 U) OTHER&RESERVES Debt service $ 771,316 $ 771,316 $ 776,753 $ (51437) Indirect costs 151,139 151,139 151,139 - Transfer out-PARD 77,379 77,379 77,379 - Reserve for: - Infrastructure& major repairs 102,051 589,188 575,000 14,188 Non-departmental 40,275 40,275 41,411 (1,136) Total other&reserves $ 1,142,160 $ 1,629,297 $ 1,621,682 $ 7,615 Total expenses $ 4,668,899 $ 5,011,788 $ 4,892,022 $ 119,766 Balance $ - $ - $ (62,973) $ (62,973) C) Notes to other supplementary information are an integral part of this schedule. 110 Packet Pg. 275 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenses, and Changes in Net Position-Budget(Non-GAAP Basis)and Actual Golf Year Ended September 30, 2015 Variance with Final Budget- Positive Original Final Actual (Negative) REVENUES Green fees $ 957,518 $ 914,877 $ 870,480 $ (44,397) Pro shop 375,856 377,056 388,861 11,805 Driving range 80,500 80,500 92,330 11,830 LL Carts 391,436 391,436 370,048 (21,388) Food &beverage 589,027 630,468 660,051 29,583 General &administrative - - 405 405 Ln Other revenues 1,000 1,000 41,355 40,355 Total revenues 2,395,337 2,395,337 2,423,530 28,193 EXPENSES Operating Pro shop $ 165,718 $ 165,718 $ 158,563 $ 71155 A LL Pro shop: cost of goods sold 143,140 143,140 138,415 41725 Driving range 13,000 13,000 8,562 41438 Golf carts 231,999 231,999 230,040 11959 Course maintenance 601,500 601,500 542,122 59,378 Food &beverage 250,211 250,211 263,935 (13,724) U) Food &beverage: cost of goods sold 191,434 191,434 197,226 (5,792) CL Sales& membership 50,501 50,501 54,682 (4,181) General &administrative 239,771 239,771 264,863 (25,092) Clubhouse 115,883 115,883 126,275 (10,392) Management fees 119,535 119,535 137,560 (18,025) Sub-total 2,122,692 2,122,692 2,122,243 449 Ln OTHER&RESERVES Debt service $ 119,500 $ 119,500 $ 119,516 $ (16) Payment to interdepartmental loans: Water Fund 37,232 - - - General fund 110,528 147,760 147,760 - Reserve for Equipment/CIP 5,385 5,385 5,385 - Total other&reserves $ 272,645 $ 272,645 $ 272,661 $ (16) Total expenses $ 2,395,337 $ 2,395,337 $ 2,394,904 $ 433 2 Balance $ - $ - $ 28,626 $ 28,626 4- 0 Notes to other supplementary information are an integral part of this schedule. C) 111 Packet Pg. 276 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenses, and Changes in Net Position-Budget(Non-GAAP Basis)and Actual Facilities and Construction Year Ended September 30, 2015 Variance with Final Budget- Positive Original Final Actual (Negative) REVENUES Charges for service Transfer from: General fund $ 737,070 $ 737,070 $ 737,070 $ - LL Parks development fund 320,000 320,000 320,000 - 4) Utility Fund 1,598,063 1,598,063 1,598,063 - Sub-total 2,655,133 2,655,133 2,655,133 - Other revenues CM Interest income 5,700 10,473 14,295 31822 Rent from rental properties 78,000 78,000 76,804 (1,196) Other income 13,500 41,289 25,118 (16,171) Sub-total 97,200 129,762 116,217 (13,545) Sub-total revenues 2,752,333 2,784,895 2,771,350 (13,545) LL Appropriation of fund balance Building services fund reserves 56,784 240,485 240,485 - Sub-total 56,784 240,485 240,485 - r Total revenues $ 2,809,117 $ 3,025,380 $ 3,011,835 $ (13,545) 4) EXPENSES CL General services $ 322,247 $ 322,247 $ 324,362 $ (2,115) Building services 2,077,121 2,288,600 2,025,558 263,042 Rental property program 56,910 56,910 30,385 26,525 Transfer to capital budget 294,000 294,000 294,000 - LL Sub-total 2,750,278 2,961,757 2,674,305 287,452 0 Ln OTHER&RESERVES Debt service $ 24,670 $ 24,670 $ 24,670 $ CM- U) Other 13,079 13,090 13,079 11 Reserve for rental property 21,090 21,090 21,090 12 Total other&reserves $ 58,839 $ 58,850 $ 58,839 $ 11 M Total expenses $ 2,809,117 $ 3,020,607 $ 2,733,144 $ 287,463 Balance $ - $ 4,773 $ 278,691 $ 273,918 Notes to other supplementary information are an integral part of this schedule. 4- 0 112 Packet Pg. 277 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenses, and Changes in Net Position-Budget(Non-GAAP Basis)and Actual Fleet Services Year Ended September 30, 2015 Variance with Final Budget- Positive Original Final Actual (Negative) REVENUES Charges for service Transfer from: General fund $ 1,190,157 $ 1,190,157 $ 1,190,157 $ - LL Utility fund 1,751,354 1,751,354 1,751,354 - Utility CIP/utility customers 256,945 256,945 256,945 - Crime control district 151,692 151,692 151,692 - Parks development fund 128,117 128,117 128,117 - CM Otherfunds 35,851 35,851 35,851 - Sub-total 3,514,116 3,514,116 3,514,116 - Other revenues Interest income 6,900 12,651 16,805 4,154 0 Sale of city property 20,000 30,161 29,606 (555) LL Other income 12,000 57,092 56,096 (996) r_ Transfer from general fund 21,040 21,040 21,040 - Transfer from utility fund 50,000 50,000 50,000 - Sub-total 109,940 170,944 173,547 2,603 4) Sub-total revenues 3,624,056 3,685,060 3,687,663 2,603 CL Appropriation of fund balance Equipment service fund reserves 204,410 542,264 542,264 - Sub-total 204,410 542,264 542,264 - Total revenues $ 3,828,466 $ 4,227,324 $ 4,229,927 $ 2,603 LL EXPENSES 0 General services $ 350,931 $ 351,401 $ 297,282 $ 54,119 Ln Equipment services operations 1,735,876 1,735,950 1,481,835 254,115 CM Fire fleet maintenance 279,972 281,133 252,134 28,999 U) M Equipment purchases 342,915 346,353 300,096 46,257 g Fire vehicles/equipment 60,437 62,645 36,638 26,007 U) Police vehicles/equipment 548,115 550,323 438,780 111,543 Sub-total 3,318,246 3,327,805 2,806,765 521,040 OTHER&RESERVES Debt service $ 447,714 $ 447,714 $ 447,714 $ - 2 Other 12,506 342,506 342,506 - 4- Equipment services reserves 50,000 49,173 49,173 - Total other&reserves $ 510,220 $ 839,393 $ 839,393 $ - Total expenses $ 3,828,466 $ 4,167,198 $ 3,646,158 $ 521,040 Balance $ - $ 60,126 $ 583,769 $ 523,643 Notes to other supplementary information are an integral part of this schedule. 113 Packet Pg. 278 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Schedule of Revenues, Expenses, and Changes in Net Position-Budget(Non-GAAP Basis)and Actual Self Insurance Fund Year Ended September 30, 2015 Variance with Final Budget- Positive Original Final Actual (Negative) 4) REVENUES _ Allocations Health/medical $ 9,131,504 $ 9,131,504 $ 9,234,574 $ 103,070 Worker's compensation 500,390 500,390 500,390 - LL Administration allocation 568,619 568,619 568,619 - Other insurance 574,920 574,920 576,360 1,440 :3 Sub-total 10,775,433 10,775,433 10,879,943 104,510 Ln Other revenues CM Interest income 24,000 40,732 54,014 13,282 Other income 95,800 280,987 281,064 77 Expenditure reimbursement - 422,054 462,324 40,270 Sub-total 119,800 743,773 797,402 53,629 2 Sub-total revenues 10,895,233 11,519,206 11,677,345 158,139 LL Appropriation of fund balance Self insurance fund reserves 100,000 100,000 100,000 - Sub-total 100,000 100,000 100,000 - Total revenues $ 10,995,233 $ 11,619,206 $ 11,777,345 $ 158,139 U) EXPENSES CL Health/medical $ 9,154,738 $ 9,570,518 $ 10,096,330 $ (525,812) Worker's compensation 591,441 596,441 840,925 (244,484) Personnel expenses 458,270 462,091 449,136 12,955 Other insurance 479,920 479,920 397,704 82,216 LL Reserve for insurance claims 20,064 - - - C� Other expenses 95,800 109,984 145,906 (35,922) Life insurance premium 95,000 95,000 86,736 81264 U) Sub-total $ 10,895,233 $ 11,313,954 $ 12,016,737 $ (702,783) OTHER&RESERVES 9 Transfer to retiree health care fund $ 100,000 $ 100,000 $ 100,000 $ - T Total other&reserves $ 100,000 $ 100,000 $ 100,000 $ - Total expenses $ 10,995,233 $ 11,413,954 $ 12,116,737 $ (702,783) Balance $ - $ 205,252 $ (339,392) $ (544,644) Notes to other supplementary information are an integral part of this schedule. 0 114 Packet Pg. 279 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Schedule of Revenues, Expenses, and Changes in Net Position-Budget(Non-GAAP Basis)and Actual Information Technology Year Ended September 30,2015 Variance with Final Budget- Positive Original Final Actual (Negative) REVENUES Telecommunications a� Transfer from: General fund $ 294,255 $ 325,876 $ 321,798 $ (4,078) LL Park Fund 32,227 32,387 32,387 - Crime control district 26,592 26,592 26,592 - Utility fund 79,490 81,048 81,168 120 Other funds 52,763 58,297 58,297 - Ln Sub-total 485,327 524,200 520,242 (3,958) Computers: Transfer from: General fund $ 932,796 $ 932,796 $ 932,796 $ - Park Fund 102,370 102,370 102,370 - 2 Crime control district 171,086 171,086 171,086 - 4- Utility fund 666,505 666,505 666,505 - Other funds 281,155 281,155 281,155 - Sub-total 2,153,912 2,153,912 2,153,912 - Other revenues Interest income 6,700 9,047 12,055 3,008 Transmitter lease 145,012 145,012 136,940 (8,072) CL Other income 18,410 22,358 35,796 13,438 cue Transfer from general fund 76,788 76,788 77,385 597 Transfer from utility fund 175,000 175,000 175,000 - Sub-total 421,910 428,205 437,176 8,971 LL Sub-total revenues 3,061,149 31106,317 3,111,330 5,013 Appropriation of fund balance Ln Appropriation of information systems reserves - 1,339,373 1,339,373 - Sub-total - 1,339,373 1,339,373 - Total revenues $ 3,061,149 $ 4,445,690 $ 4,450,703 $ 5,013 EXPENSES General services $ 247,632 $ 247,632 $ 245,714 $ 1,918 Major computer systems 321,634 419,053 298,297 120,756 Microcomputer systems 719,091 720,341 605,516 114,825 Telecommunications 343,260 382,133 354,386 27,747 Data network 655,183 657,493 588,592 68,901 GIS System 186,096 186,096 178,592 7,504 Public safety 468,209 477,659 382,167 95,492 Sub-total 2,941,105 3,090,407 2,653,264 437,143 Cj OTHER&RESERVES Other 8,614 8,614 8,614 - Reserve for system improvements 111,430 1,346,669 1,228,944 117,725 Total other&reserves $ 120,044 $ 1,355,283 $ 1,237,558 $ 117,725 Total expenses $ 3,061,149 $ 4,445,690 $ 3,890,822 $ 554,868 Balance $ - $ - $ 559,881 $ 559,881 Notes to other supplementary information are an integral part of this schedule. 115 Packet Pg. 280 0 a� S Ln CD 2A 4- 0 r_ 0 m r_ 4) U) CL to Ln CD C) U) m x 4- 0 C) This page intentionally left blank. 116 Packet Pg. 281 F.1.a 0 Statistical Section S Financial Trends Ln These schedules contain trend information to help the reader understand how the government's cm financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the government's most significant local P LL revenue source, the property tax. r_ Debt Capacity These schedules present information to help the reader assess the affordability of the government's current level of outstanding debt and the government's ability to issue additional debt in the future. CL Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. LL Operating Information Ln These schedules contain service and infrastructure data to help the reader understand how the cm information in the government's financial report relates to the services the government provides and the activities it performs. X 4- 0 to 117 Packet Pg. 282 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Net Position by Component (unaudited) Fiscal 2015 (1) 2014 2013 2012 Governmental Activities Net Investment in Capital Assets $ 196,388,094 $ 196,926,762 $ 205,397,867 $ 205,162,006 Restricted 3,451,280 4,115,704 4,634,803 4,253,430 Unrestricted 30,601,993 39,299,589 26,228,262 23,572,411 Total net assets 230,441,367 240,342,055 236,260,932 232,987,847 LL Business-type Activities Net Investment in Capital Assets 57,335,778 58,375,965 62,044,064 62,615,382 Ln Restricted 4,153,891 3,788,127 3,762,460 2,710,553 Unrestricted 17,209,164 22,414,369 20,753,387 22,957,383 CM Total net assets 78,698,833 84,578,461 86,559,911 88,283,318 Primary Government Net Investment in Capital Assets 253,723,872 255,302,727 267,441,931 267,777,388 LL Restricted 7,605,171 7,903,831 8,397,263 6,963,983 Unrestricted 47,811,157 61,713,958 46,981,649 46,529,794 Total net assets $ 309,140,200 $ 324,920,516 $ 322,820,843 $ 321,271,165 U) 2 CL (1)Amounts for 2015 were restated as per GASB 68 LL Ln CM C) U) M x 4- 0 C) 118 Packet Pg. 283 F.1.a Table 1 Year 2011 2010 2009 2008 2007 2006 $ 178,349,544 $ 164,973,337 $ 142,066,447 $ 129,533,935 $ 128,290,273 $ 127,692,821 ea 3,368,190 3,715,127 4,693,345 3,984,364 3,270,409 2,973,821 37,099,102 35,253,260 52,082,125 54,146,336 44,787,548 36,986,785 218,816,836 203,941,724 198,841,917 187,664,635 176,348,230 167,653,427 65,810,811 61,160,189 62,354,993 60,828,610 65,485,796 62,776,005 Ln 2,600,187 2,610,287 3,018,779 2,709,713 2,937,027 2,712,360 CD 21,455,781 21,724,799 25,309,106 29,018,350 24,779,076 27,457,208 89,866,779 85,495,275 90,682,878 92,556,673 93,201,899 92,945,573 244,160,355 226,134,526 204,421,440 190,362,545 193,776,069 190,468,826 - 5,968,377 6,325,414 7,712,124 6,694,077 6,207,436 5,686,181 58,554,883 56,978,925 77,391,231 83,164,686 69,566,624 64,443,993 $ 308,683,615 $ 289,438,865 $ 289,524,795 $ 280,221,308 $ 269,550,129 $ 260,599,000 U) 2 CL to Ln C) T- U) m x 4- 0 C) 119 Packet Pg. 284 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Changes in Net Position (unaudited) Fiscal Year 2015 2014 2013 2012 2011 Expenses Governmental activities: General government $ 11,393,967 $ 11,226,130 $ 10,656,322 $ 10,399,845 $ 9,886,731 Public safety 31,515,975 31,035,115 30,611,650 28,881,714 28,512,136 Culture and recreation 12,542,034 11,931,205 11,633,882 11,679,786 9,352,354 Public works 8,958,913 8,962,500 8,398,711 7,794,339 7,679,001 LL Interest and other fees 4,488,461 3,915,632 3,673,780 3,453,283 2,108,277 Total governmental activities 68,899,350 67,070,582 64,974,345 62,208,967 57,538,499 Business-type activities: Ln Utility 30,228,765 28,066,386 27,623,220 26,642,141 27,981,025 Golf course 4,354,652 2,433,004 2,566,632 2,429,973 2,227,315 CM Aquatic park 2,394,132 4,542,966 4,749,688 4,753,949 4,507,561 Interest and other fees - - - - - Total business-type activities 36,977,549 35,042,356 34,939,540 33,826,063 34,715,901 2 Total primary government 105,876,899 102,112,938 99,913,885 96,035,030 92,254,400 LL 4- Program Revenues r_ Governmental activities: Charges for services General government 5,145,175 5,521,811 5,497,050 5,490,245 5,466,876 4) Public safety 3,894,194 3,655,306 4,204,508 3,426,008 2,668,111 Culture and recreation 3,104,181 3,100,292 3,001,249 2,381,024 858,241 Public works 1,063,766 1,136,920 937,102 932,819 857,809 Operating grants and contributions 2,966,484 2,826,280 2,545,158 1,833,138 879,524 Capital grants and contributions 478,587 2,676,372 2,938,951 7,401,996 17,644,326 Total governmental activities 16,652,387 18,916,981 19,124,018 21,465,230 28,374,887 LL Business-type activities: Cn Ln Charges for services CM Utility 29,826,840 30,483,178 30,160,950 28,445,746 28,921,168 U) Golf course 4,237,734 2,314,514 2,371,010 2,443,865 2,324,118 Aquatic park 2,335,223 4,019,970 4,377,388 4,548,828 4,587,899 12 Operating grants and contributions - 84,842 138,831 80,660 - Capital grants and contributions - - 7,291 50,744 4,643,096 Total business-type activities 36,399,797 36,902,504 37,055,470 35,569,843 40,476,281 Total primary government 53,052,184 55,819,485 56,179,488 57,035,073 68,851,168 Net(Expense) Revenue Governmental activities (52,246,963) (48,153,601) (45,850,327) (40,743,737) (29,163,612) 4- Business-type activities (577,752) 1,860,148 2,115,930 1,743,780 5,760,380 Total primary government $ (52,824,715) $ (46,293,453) $ (43,734,397) $ (38,999,957) $ (23,403,232) C) 120 Packet Pg. 285 F.1.a Table 2 2010 2009 2008 2007 2006 0 $ 14,653,747 $ 16,355,871 $ 9,379,422 $ 8,461,142 $ 9,269,861 26,172,292 27,772,668 25,791,827 23,265,259 22,022,696 9,468,346 10,718,579 7,973,359 7,327,532 7,611,710 8,388,531 2,126,721 5,748,315 7,799,706 8,169,282 1,761,128 2,269,541 2,302,096 2,561,837 2,546,791 60,444,044 59,243,380 51,195,019 49,415,476 49,620,340 Ln 27,313,424 25,121,565 27,329,181 23,154,259 22,929,665 CD 2,236,113 2,217,868 2,302,670 2,247,272 2,239,404 CIN 4,188,892 4,105,695 3,774,757 3,433,492 3,343,073 - - 433,588 - - 33,738,429 31,445,128 33,840,196 28,835,023 28,512,142 2A 94,182,473 90,688,508 85,035,215 78,250,499 78,132,482 4- 0 r_ 8,619,557 4,547,658 9,333,482 6,505,029 6,881,843 0 2,918,356 4,922,180 2,995,693 1,718,460 1,314,329 909,267 1,446,132 2,517,122 1,124,777 1,212,343 a CL . 839,309 1,896,764 2,355,161 1,179,302 174,166 to 964,914 1,142,243 353,816 1,028,853 1,153,543 6,806,586 11,341,668 304,514 410,297 2,910,568 21,057,989 25,296,645 17,859,788 11,966,718 13,646,792 Ln C) T- 24,324,685 25,060,898 26,349,559 21,630,336 25,858,511 U) 2,264,256 2,509,577 2,571,409 2,298,065 1,775,963 x 4,090,087 3,858,389 3,943,288 3,916,691 3,894,274 - - - - 66,466 271,624 - - 599,983 1,288,734 30,950,652 31,428,864 32,864,256 28,445,075 32,883,948 52,008,641 56,725,509 50,724,044 40,411,793 46,530,740 (39,386,055) (33,946,735) (33,335,231) (37,448,758) (35,973,548) 4- (2,787,777) (16,264) (975,940) (389,948) 4,371,806 $ (42,173,832) $ (33,962,999) $ (34,311,171) $ (37,838,706) $ (31,601,742) C) continued 121 Packet Pg. 286 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Table 2 Changes in Net Position (unaudited) Fiscal Year 2015 2014 2013 2012 2011 General Revenues and Other Changes in Net Position Governmental activities: Taxes Property $ 26,099,238 $ 24,903,041 $ 24,126,068 $ 22,222,620 $ 19,339,750 Sales 18,571,502 18,007,872 17,359,807 16,974,086 16,645,412 Mixed beverage 138,100 129,512 117,223 101,724 128,007 Franchise 4,502,303 4,332,756 4,166,579 4,269,229 4,329,500 Occupancy 232,793 206,930 221,003 210,324 238,410 Unrestricted investment earnings 514,062 320,460 258,705 300,928 495,386 Ln Special items - - - - - Miscellaneous 188,123 142,074 205,445 288,093 1,271,555 Transfers 3,973,821 4,162,160 3,674,512 3,384,630 1,590,704 Total governmental activities 54,219,942 52,204,805 50,129,342 47,751,634 44,038,724 5 2 LL Business-type activities: Unrestricted investment earnings 119,568 20,007 80,950 50,479 171,125 Miscellaneous 35,052 300,555 5,380 6,909 30,703 Transfers (3,973,821) (4,162,160) (3,674,512) (3,384,630) (1,590,704) Total business-type activities (3,819,201) (3,841,598) (3,588,182) (3,327,242) (1,388,876) Total primary government 50,400,741 48,363,207 46,541,160 44,424,392 42,649,848 CL Changes in Net Position Governmental activities 1,972,979 4,051,204 4,279,015 7,007,897 14,875,112 Business-type activities (4,396,953) (1,981,450) (1,472,252) (1,583,462) 4,371,504 Total primary government $ (2,423,974) $ 2,069,754 $ 2,806,763 $ 5,424,435 $ 19,246,616 LL Ln C) U) M X 4- 0 C) 122 Packet Pg. 287 F.1.a Table 2 2010 2009 2008 2007 2006 0 a� $ 19,909,976 $ 20,605,670 $ 19,248,707 $ 18,663,482 $ 18,134,230 16,428,281 16,058,728 17,445,806 16,865,282 15,934,374 118,253 117,757 161,783 129,860 123,355 3,956,663 3,802,559 4,604,523 4,450,441 3,855,169 240,387 152,220 260,319 284,099 199,850 588,866 1,611,632 2,245,479 2,757,208 2,047,583 Ln - - 196,320 1,499,140 - 553,412 188,512 477,026 651,376 2,341,327 2,690,024 2,586,937 569,227 712,782 873,867 44,485,862 45,124,015 45,209,190 46,013,670 43,509,755 2A 4- 236,674 740,393 878,795 1,330,781 945,873 53,524 (10,986) 8,962 - - (2,690,024) (2,586,937) (557,044) (712,782) (873,867) (2,399,826) (1,857,530) 330,713 617,999 72,006 U) 42,086,036 43,266,485 45,539,903 46,631,669 43,581,761 CL to 5,099,807 11,177,280 11,873,959 8,564,912 7,536,207 (5,187,603) (1,873,794) (645,227) 228,051 4,443,812 $ (87,796) $ 9,303,486 $ 11,228,732 $ 8,792,963 $ 11,980,019 LL Ln C) T- U) m x 4- 0 C) 123 Packet Pg. 288 0 a� S Ln CD 2A 4- 0 r_ 0 m r_ 4) U) CL to Ln CD C) U) m x 4- 0 C) This page intentionally left blank. 124 Packet Pg. 289 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Table 3 Fund Balance-Governmental Funds (unaudited) Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2015 2014 2013 2012 2011 General Fund Nonspendables $ 341,273 $ 450,459 $ 669,275 $ 707,569 $ 926,707 0 Restricted 567,522 476,163 1,123,587 868,715 653,526 Committed - - - - - LL Assigned 929,092 3,811,011 3,963,333 3,759,566 1,848,329 0 Unassigned 9,457,571 9,070,595 9,186,072 8,992,908 9,838,310 Total General Fund $ 11,295,458 $ 13,808,228 $ 14,942,267 $ 14,328,758 $ 13,266,872 Ln CM All Other Governmental Funds Nonspendables $ 33,195 $ 50,288 $ 27,002 $ 47,202 $ 30,308 Restricted 44,653,934 74,611,779 63,631,314 60,696,117 30,997,610 2 Committed 1,565,680 1,070,103 4,161,319 3,622,301 6,221,018 LL 4- Assigned 19,075,193 10,674,838 17,280,746 16,333,423 6,480,459 r_ Unassigned (406,809) - - - - Total all other governmental funds $ 64,921,193 $ 86,407,008 $ 85,100,381 $ 80,699,043 $ 43,729,395 Total all governmental funds $ 76,216,651 $ 100,215,236 $ 100,042,648 $ 95,027,801 $ 56,996,267 CL Notes: GASB 54 Fund Balance reporting was implemented in 2011. LL Ln CM C) U) M x 4- 0 125 Packet Pg. 290 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Changes in Fund Balance-Governmental Funds Last Ten Fiscal Years Fiscal 2015 2014 2013 2012 2011 Revenues Taxes $ 49,541,169 $ 47,625,477 $ 45,990,682 $ 43,777,983 $ 40,681,079 a� Licenses and permits 1,520,086 1,632,278 1,764,004 1,543,875 1,375,742 Charges for services 5,904,848 6,681,429 6,800,050 6,715,031 6,076,625 S !L Gas utility leases and royalties 664,788 1,187,340 Fines 2,222,995 1,990,953 2,424,064 2,421,696 2,665,135 Civil citations 1,226,567 990,714 923,282 778,393 674,745 Contributions 277,972 199,825 140,385 176,740 187,813 d Ln Special assessments 12,095 - 10,116 200 8,748 cm Investment income 437,668 319,622 177,178 415,326 383,453 Intergovernmental 4,305,248 5,072,166 4,467,635 5,732,323 9,070,672 Forfeitures 67,598 107,275 323,285 138,604 183,295 Developer contributions - 600,000 Miscellaneous 263,251 388,858 1,318,985 1,363,579 445,214 A !L Total revenues 66,444,285 66,795,937 64,339,666 63,063,750 61,752,521 - Expenditures 0 General government 9,299,236 10,155,142 10,673,511 10,829,793 10,311,297 M Public safety 30,050,383 29,022,814 28,317,163 26,959,990 25,934,692 Culture and recreation 9,534,702 9,231,503 9,290,204 9,163,107 7,453,931 4) Public works 3,024,822 2,924,516 3,563,149 3,601,659 2,416,186 2 Capital outlay 55,831,018 30,729,875 10,208,747 15,945,071 15,475,441 CL Debt service Principal retirement 9,999,376 8,578,960 8,523,434 8,846,947 8,187,696 Interest and fiscal charges 4,506,910 3,924,385 3,659,348 3,092,172 2,194,444 Total expenditures 122,246,447 94,567,195 74,235,556 78,438,739 71,973,687 Excess(deficiency)of revenues LL over expenditures (55,802,162) (27,771,258) (9,895,890) (15,374,989) (10,221,166) Other Financing Ln T- Sources(Uses) I cm ssuance of debt 22,215,000 24,360,000 9,845,000 26,224,251 7,315,000 U) Premium on issuance of debt 3,265,946 310,000 300,486 546,164 358,270 M X Proceeds from refunding of debt 10,416,576 3,936,985 - 3,699,388 2 Payment to refunded bond escrow agent (10,416,576) (3,936,985) (3,809,076) U) Insurance recovery proceeds - - - - - Proceeds from sale of assets 136,558 19,500 799,045 3,145,280 806,479 Payment in lieu of taxes - - - - Transfers in 12,337,451 16,597,422 7,782,662 8,705,604 5,659,688 Transfers out (6,151,378) (13,343,076) (3,816,456) (4,842,779) (4,304,576) Total other financing sources(uses) 31,803,577 27,943,846 14,910,737 33,668,832 9,834,861 4- Net change in fund balances $ (23,998,585) $ 172,588 $ 5,014,847 $ 18,293,843 $ (386,305) C3 Debt service as a percentage of noncapital expenditures 21.8% 19.6% 19.0% 19.1% 18.4% 126 Packet Pg. 291 F.1.a Table 4 Year 2010 2009 2008 2007 2006 $ 40,842,538 $ 40,736,934 $ 41,721,138 $ 40,393,165 $ 39,296,101 a� 1,148,594 988,020 1,705,703 1,526,636 2,251,292 7,588,891 6,562,241 6,461,012 6,335,104 6,354,199 S LL 2,631,813 2,677,901 2,394,920 2,064,187 2,130,968 726,274 999,584 825,191 - - 192,501 160,194 196,320 170,326 177,273 d T- - 276,475 154,125 28,225 8,348 CD CD 538,193 1,250,127 1,678,921 2,258,877 1,719,493 3,188,918 2,477,191 1,200,491 1,267,839 1,730,684 232,054 146,830 142,874 74,448 86,752 1,876,282 517,492 6,634,802 939,241 1,431,192 A !L 58,966,058 56,792,989 63,115,497 55,058,048 55,186,302 - r_ 10,435,250 9,459,393 9,054,489 8,607,293 9,329,442 24,697,961 25,262,159 26,051,508 23,414,877 22,049,690 7,344,261 8,545,815 7,241,596 6,684,263 6,431,291 2,518,081 2,478,800 2,663,001 2,522,751 2,468,819 2 14,301,095 10,506,569 5,137,596 3,742,378 4,909,101 CL 7,115,319 5,699,394 6,188,393 6,697,217 6,462,905 to 2,161,325 2,048,696 2,225,585 2,281,930 2,349,160 68,573,292 64,000,826 58,562,168 53,950,709 54,000,408 0� LL (9,607,234) (7,207,837) 4,553,329 1,107,339 1,185,894 Ln T- 9,186,475 8,503,525 4,465,000 2,185,000 3,625,000 U) 42,075 242 - - - m x - - 51085,000 8,245,000 9 (5,075,787) (8,100,166) U) - - - 282,000 34,678 188,512 16,353 9,864 - - 355,004 - - 8,158,092 9,274,945 5,918,639 5,812,148 4,436,800 (7,540,830) (7,759,444) (5,899,649) (5,990,349) (5,710,150) 9,880,490 10,207,780 4,855,347 2,307,876 2,496,484 4- 0 $ 273,256 $ 2,999,943 $ 9,408,676 $ 3,415,215 $ 3,682,378 C3 17.1% 14.5% 15.7% 17.9% 18.0% 127 Packet Pg. 292 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Appraised and Taxable Value of Property Last Ten Fiscal Years (unaudited) 0 Appraised Appraised Appraised Appraised T3 Fiscal Residential Commercial Industrial Other a, Year Property Property Property Property(1) 2006 2,208,222,079 693,344,286 23,766,206 396,694,369 _ 2007 2,322,672,063 706,800,208 24,219,035 432,473,733 2008 2,454,968,837 732,299,884 25,008,737 482,924,193 Ln 2009 2,527,941,808 723,655,894 24,685,405 603,634,230 cm 2010 2,536,677,612 755,382,876 24,238,120 588,109,765 2011 2,599,141,890 719,345,087 23,749,165 837,360,868 2012 2,611,659,424 686,273,536 24,818,749 940,103,263 2013 2,655,417,917 720,473,286 24,346,385 923,522,505 - 2014 2,723,398,788 734,575,403 25,428,750 982,712,831 2015 2,909,249,656 711,989,346 27,110,792 1,039,493,570 Source: Tarrant Appraisal District Certified Tax Roll, July 25, City budget(2007-2015) Tarrant Appraisal District September Report, City budget(2006) CL (1) This category includes properties under protest with the appraisal review board and M properties classified as incomplete by Tarrant Appraisal District at the time NRH City Council approves the Tax Rolls for the budget year. The net taxable values are those approved by City Council by resolution. Ln cm C) U) M X 4- 0 C) 128 Packet Pg. 293 F.1.a Table 5 0 Less: Personal Tax-Exempt Net Taxable Total Direct a, Property Property Value Tax Rate S 361,559,520 388,297,207 3,295,289,253 0.57000 _ 342,337,515 421,361,355 3,407,141,199 0.57000 318,594,946 438,489,302 3,575,307,295 0.57000 Ln 331,545,812 451,978,018 3,759,485,131 0.57000 CM 311,291,262 465,272,083 3,750,427,552 0.57000 302,449,010 879,728,308 3,602,317,712 0.57000 302,955,622 947,626,573 3,618,184,021 0.57000 312,039,668 903,068,001 3,732,731,760 0.61000 _ 311,311,919 936,363,242 3,841,064,449 0.61000 324,807,300 956,622,434 4,056,028,230 0.61000 U) 2 CL Ln CM C) U) M X 4- 0 C) 129 Packet Pg. 294 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Property Tax Rates- Direct and Overlapping Governments (per$100 assessed value) (unaudited) 0 City of North Richland Hills a� Fiscal General Debt service Year fund (2) fund (2) Total (2) E 2006 0.34432 0.22568 0.57000 2007 0.34695 0.22305 0.57000 Ln 2008 0.34241 0.22759 0.57000 cm 2009 0.33875 0.23125 0.57000 2010 0.35412 0.21588 0.57000 2011 0.37022 0.19978 0.57000 2 2012 0.35642 0.21358 0.57000 0 2013 0.35108 0.25892 0.61000 2014 0.34904 0.26096 0.61000 2015 0.35058 0.25942 0.61000 Sources: (1)Tarrant County. (2)City records. Ln cm C) U) M X 4- 0 C) 130 Packet Pg. 295 F.1.a Table 6 0 Birdville a� Junior school college (1) district(1) Hospital (1) County (1) Total 0.13938 1.61700 0.23540 0.27250 2.83428 0.13938 1.56500 0.23540 0.27150 2.78128 Ln 0.13938 1.40500 0.23040 0.26650 2.61128 CD Cm 0.13796 1.41000 0.22790 0.26400 2.60986 0.13767 1.40500 0.22790 0.26400 2.60457 0.13764 1.42500 0.22790 0.26400 2.62454 2p 0.14897 1.43500 0.22790 0.26400 2.64587 0 0.14897 1.43500 0.22790 0.26400 2.68587 0.14950 1.43500 0.22790 0.26400 2.68640 0.14950 1.43500 0.22790 0.26400 2.68640 2 CL Ln CD Cm C) U) m x 4- 0 C) 131 Packet Pg. 296 0 a� S Ln CD 2A 4- 0 r_ 0 m r_ 4) U) CL to Ln CD C) U) m x 4- 0 C) This page intentionally left blank. 132 Packet Pg. 297 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Table 7 Principal Taxpayers (unaudited) Year Ended September 30,2015 Percentage of 2014 assessed total assessed Taxpayer Type of business valuation* valuation Wal-Mart Retail $ 73,341,839 1.81% Columbia N Hills Hosp Sub Healthcare Provider 44,597,029 1.10% BGPC Equestrian Real Estate 37,200,000 0.92% LL Ap Wp N Richland Hills Reit Multi Family 33,700,000 0.83% _ AP Wp Green Reit LLC Multi Family 30,200,000 0.74% Oncor Electric Delivery Co. Utility Service Provider 29,194,168 0.72% Ln Company One, LLC Real Estate 27,241,320 0.67% cm Chesapeake Operating(Wi) Gas Utility 24,186,140 0.60% AR-Hightower LP Etal Multi Family 22,900,000 0.56% Five Star Ford Automotive Dealership 20,237,945 0.50% $ 342,798,441 8.45% A U_ 4- 0 r_ Year Ended September 30,2006 Percentage of 2005 assessed total assessed Taxpayer Type of business valuation* valuation CL Wal-Mart Retail $ 61,707,951 1.87% M Hospital Corporation of America Healthcare Provider 42,993,046 1.30% Home Depot, Inc. Retail 39,445,434 1.20% Western RIM Investors LP Real Estate 38,603,766 1.17% LL Food Brands America, Inc. Manufacturer 32,703,951 0.99% Kimberly-Clark/Tecnol, Inc. Manufacturer 29,105,365 0.88% Ln T_ Alliance Park Portfolio, LLC Real Estate 26,678,670 0.81% cm TXU Electric Delivery Utility Service Provider 25,278,815 0.77% X Meadows NRH Associates LP Real Estate 23,074,357 0.70% 2 Five Star Ford/Pack Properties Automotive Dealership 23,020,761 0.69% ua $ 342,612,116 10.39% *Source:Tarrant Appraisal District. 4- 0 C3 133 Packet Pg. 298 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Property Tax Levies and Collections Last Ten Fiscal Years (unaudited) Collected within the Fiscal Year of the Levy Collections Fiscal Total Percent of in Subsequent Year tax levy Amount levy Years .5 2006 18,783,149 18,461,867 98.29% $ 299,027 2007 19,420,705 19,133,840 98.52% $ 262,947 2008 20,379,252 19,980,714 98.04% $ 371,277 Ln 2009 21,429,065 21,268,426 99.25% $ 123,798 Cm 2010 21,377,437 21,115,928 98.78% $ 214,032 2011 20,533,211 20,281,233 98.77% $ 201,579 2012 20,623,649 20,370,425 98.77% $ 195,763 2 2013 22,769,664 22,175,814 97.39% $ 498,732 4- 2014 23,430,493 22,797,806 97.30% $ 460,351 2015 24,373,536 23,954,022 98.28% $ 244,411 Ln Cm C) U) m X 4- 0 C) 134 Packet Pg. 299 F.1.a Table 8 0 Total Collections to Date Percent of Amount Levy S 18,760,894 99.88% 19,396,787 99.88% 20,351,992 99.87% Ln 21,392,224 99.83% CD Cm 21,329,960 99.78% 20,482,813 99.75% 20,566,188 99.72% 2p 22,674,545 99.58% 4- 23,258,157 99.26% 24,198,433 99.28% U) 2 CL Ln CD Cm C) U) m x 4- 0 C) 135 Packet Pg. 300 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Ratios of Outstanding Debt by Type Last Ten Fiscal Years (unaudited) (dollars in thousands, except per capita) General Bonded Debt Fiscal Estimated Net Taxable General Certificates of Loans a Year population(1) value(2) obligation bonds obligation payable 4) 2006 63,521 3,295,289 38,024 11,048 - a� 2007 64,050 3,407,141 37,821 7,842 - 2008 65,750 3,575,307 37,823 7,041 - LL 2009 66,100 3,759,485 39,810 7,229 1,550 4) 2010 66,400 3,750,428 41,725 8,255 1,625 :3 2011 63,420 3,602,318 41,000 9,575 1,242 Ln 2012 63,420 3,618,184 64,269 33,330 840 2013 63,420 3,732,732 68,945 30,910 311 2014 65,690 3,841,064 79,927 36,050 - 2015 66,300 4,056,028 77,893 50,105 - 2 4- 0 Business-Type Activities Fiscal Water&sewer General Certificates of Contractual Capital Year revenue bonds obligation bonds obligation obligations leases 2006 - 4,255 4,589 - - U) 2007 - 3,537 4,866 - - a. 2008 - 2,790 6,865 - - 2009 - 2,350 11,254 - - 2010 - 1,890 11,285 - - 2011 - 1,405 12,610 - - < 2012 - 2,210 16,415 - 388 Ln 2013 - 1,760 15,300 - 317 U) 2014 - 1,693 15,280 - 245 X 2015 - 1,812 13,670 - 163 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. (1) See Table 13 for additional population statistics. (2) See Table 5 for additional information on net taxable value. (3) Includes general bonded debt, other governmental activities debt, and business-type activities debt. M 4- 0 136 Packet Pg. 301 F.1.a Table 9 Other gov't Total Percentage General Bonded Activities Debt general of Debt per Sales tax a bonded debt Net Taxable value capita(1) revenue bonds 4) 49,072 1.49% 773 6,270 a� 45,663 1.34% 713 5,410 44,864 1.25% 682 4,520 48,589 1.29% 735 3,600 _ 51,605 1.38% 777 2,640 51,817 1.44% 817 1,645 Ln 98,439 2.72% 1,552 615 CM 100,166 2.68% 1,579 210 115,977 3.02% 1,766 105 127,998 3.16% 1,931 - 4- 0 Total Total (3) Total Percentage business-type primary bonded debt of per capita activities government per capita(1) income(1) 8,844 64,186 1,010 3.30% U) 8,403 59,476 929 2.94% 9,655 59,038 898 2.87% 13,604 65,793 995 3.31% 13,175 67,420 1,015 3.40% 14,015 67,477 1,064 3.37% < 19,013 118,067 1,862 5.97% Ln 17,377 117,753 1,857 5.79% CM U) 17,218 133,300 2,029 6.39% 15,645 143,643 2,167 6.82% 4- 0 137 Packet Pg. 302 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Table 10 Computation of Direct and Overlapping Debt September 30, 2015 (unaudited) Percentage Amount Net bonded applicable to applicable to debt City of North City of North Jurisdiction outstanding Richland Hills (2) Richland Hills City of North Richland Hills $ 99,919,027 (1) 100.00% $ 99,919,027 Birdville Independent School District 256,386,620 46.88% 120,194,047 Hurst-Euless-Bedford Ln cm Independent School District 274,883,170 0.06% 164,930 Keller Independent School District 771,227,959 3.86% 29,769,399 Tarrant County 361,420,000 3.00% 10,842,600 T 4- Tarrant County Hospital District 23,440,000 2.99% 700,856 Total overlapping debt 161,671,832 Total direct and overlapping debt $ 261,590,859 Source: First Southwest and respective entities' records. (1) Less-self-supporting debt C) (2) First Southwest-"Expenditures of the various taxing entities within the territory of the City are paid Ln out of ad valorem taxes levied by such entities on properties within the City. Such entities are independent cm of the City and may incur borrowings to finance their expenditures. This statement of direct and estimated overlapping ad valorem tax debt("Tax Debt")was developed from information contained in "Texas Municipal X Reports" published by the Municipal Advisory Council of Texas. Except for the amounts relating to the City, 2 the City has not independently verified the accuracy or completeness of such information, and no person should rely upon such information as being accurate or complete. Furthermore, certain of the entities listed may have issued additional Tax Debt since the date hereof, and such entities may have programs requiring the ig issuance of substantial amounts of additional Tax Debt, the amount of which cannot be determined." 4- 0 C) 138 Packet Pg. 303 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Table 11 Computation of Legal Debt Margin Last Ten Fiscal Years (unaudited) Total Net Debt Applicable to the Fiscal Net Taxable Total Debt Legal Debt Limit as a Percentage Year Value Debt Limit Service Margin of the Debt Limit 0 r_ 2006 3,295,289,253 49,429,339 7,674,512 41,754,827 15.53% M 2007 3,407,141,199 51,107,118 7,841,064 43,266,054 15.34% LL 2008 3,575,307,295 53,629,609 7,232,025 46,397,584 13.49% 2009 3,759,485,131 56,392,277 6,716,239 49,676,038 11.91% 2010 3,750,427,552 56,256,413 8,149,644 48,106,769 14.49% 2011 3,602,317,712 54,034,766 9,263,791 44,770,975 17.14% Ln 2012 3,618,184,021 54,272,760 7,567,382 46,705,378 13.94% cm 2013 3,732,731,760 55,990,976 8,768,411 47,222,565 15.66% 2014 3,841,064,449 57,615,967 9,565,203 48,050,764 16.60% 2015 4,056,028,230 60,840,423 11,196,142 49,644,281 18.40% 2 4- 0 r_ U) 2 CL Ln C3 U) M X 4- 0 C3 139 Packet Pg. 304 0 a� S Ln CD 2A 4- 0 r_ 0 m r_ 4) U) CL to Ln CD C) U) m x 4- 0 C) This page intentionally left blank. 140 Packet Pg. 305 F.1.a m C14 M '�T W LO (D ('? 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CO a) C Z, Co ° O >+ axi > -0 c m O c .Q C N k > > ° U o ° ° C O 0 _ m Z) 10 L O ao O O N ('7 "T LO Z) O) -O U V O O O O O C D 6 N x U) O O O C) O O O O O O ° O ° iy > N N N N N N N N N N E N z U H Co W Packet Pg. 306 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Demographic Statistics Last Ten Fiscal Years (unaudited) 0 Fiscal Estimated Median Per capita Year population (2) income (6) income (6) 2006 63,521 66,215 30,641 2007 64,050 67,951 31,558 2008 65,750 69,669 31,278 2009 66,100 67,850 30,084 Ln 2010 66,400 68,082 29,882 cm 2011 63,420 (8) 63,594 31,615 2012 63,420 78,911 31,175 2 2013 63,420 82,051 32,079 4- 2014 65,690 81,100 31,766 2015 66,300 66,475 32,176 U) Sources: 2 CL (1) Birdville Independent School District (2) North Central Texas Council of Governments and City estimates (3) Texas Employment Commission (4) Haltom Richland Chamber of Commerce (2006-2007) (5) Includes North Richland Hills students only (6) ESRI Business Information Solutions, Inc C� Ln (7) Reported as a percentage of residents with a high school diploma or greater (8) Population was adjusted based on census. cm U) M X 4- 0 142 Packet Pg. 307 F.1.a Table 13 0 School Median Education enrollment Unemployment age (6) level (6) (7) (1) (5) rate (3) 35.8 90% (4) 10,827 4.1 35.9 90% (4) 10,724 3.8 35.6 91% 10,972 4.7 35.6 91% 11,179 5.5 Ln CD 35.6 91% 11,431 6.9 Cm 38 91% 11,615 7.3 38.2 91% 10,843 6.3 2A 38.4 91% 10,883 5.5 4- 38.5 95% 10,795 4.9 38.6 92% 11,452 3.3 U) 2 CL Ln CD Cm C) U) M x 4- 0 143 Packet Pg. 308 0 a� S Ln CD 2A 4- 0 r_ 0 m r_ 4) U) CL to Ln CD C) U) m x 4- 0 C) This page intentionally left blank. 144 Packet Pg. 309 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Table 14 Principal Employers (unaudited) Year Ended September 30, 2015 Percentage of total City Employer Employees3 Rank employment* Santander Consumer USA, Inc. 1,650 1 4.49% Birdville ISD' 858 2 2.33% Wal-Mart Supercenters 792 3 2.16% Ln North Hills Hospital 785 4 2.14% cm City of North Richland Hills 541 5 1.47% Tarrant County College - NE Campus2 474 6 1.29% HealthMarkets 452 7 1.23% 2 Tyson Prepared Foods 380 8 1.03% a® 4- 0 Con-Way Freight, Inc. 290 9 0.79% Silverleaf Resorts 278 10 0.76% 6,500 17.69% U) 2 CL Year Ended September 30, 2006 Percentage of total City Employer Employees Rank employment* e' Ln UICI -The Insurance Center 1,290 1 5.15% cm Birdville ISD 1,128 2 4.50% Triad Financial Corporation 800 3 3.20% 12 North Hills Hospital 753 4 3.01% FE City of North Richland Hills 510 5 2.04% TCC - NE Campus 475 6 1.90% Tyson Prepared Foods 416 7 1.66% Wal-Mart Supercenter 370 8 1.48% Wal-Mart Supercenter 330 9 1.32% CTS Con-Way Transportation 286 10 1.14% C) 6,358 25.40% Number denotes employees working in schools in the City of NRH 2 Split with Hurst 3 Actual number of employees employed at time of reporting * Source: City records 145 Packet Pg. 310 F.1.a CITY OF NORTH RICHLAND HILLS, TEXAS Full-time Equivalent Municipal Employees by Function/Program Last Ten Fiscal Years (unaudited) 0 Fiscal Year 2015 2014 2013 2012 2011 2010 20 General government Administration 5.00 4.70 4.70 4.70 4.70 3.70 E Public information 4.00 4.00 4.00 4.00 4.00 5.00 Judicial 15.00 15.00 15.00 15.00 15.00 15.50 Finance 23.00 23.00 22.00 23.00 23.00 23.00 Ln Nondepartmental 1.00 1.00 1.00 1.00 1.00 1.00 cm Human resources 1.00 1.00 1.00 1.00 1.00 1.00 Planning and inspections 10.30 10.30 10.30 8.30 8.30 9.30 Neighborhood services 19.73 18.75 18.75 18.75 18.75 18.75 Budget and research 3.00 3.00 3.00 3.00 3.00 3.00 2 Public relations 3.50 3.75 3.75 3.75 3.75 6.75 r_ Total general government 85.53 84.50 83.50 82.50 82.50 87.00 Public safety Police 191.88 189.88 187.88 186.88 (1) 165.20 164.22 CL Fire 91.00 91.00 91.00 90.00 88.00 91.00 Total public safety 282.88 280.88 278.88 276.88 253.20 255.22 Culture and recreation Parks and recreation 162.10 162.70 160.25 (2) 145.55 121.53 118.76 C) Library 27.11 27.11 27.11 27.11 28.58 28.16 Ln Economic development 3.00 3.00 4.00 3.00 3.00 3.00 cm Total culture and recreation 192.21 192.81 191.36 175.66 153.11 149.92 x Public works 78.18 78.18 79.68 77.68 77.68 78.68 U) Internal services Building services 15.63 15.73 15.23 16.23 16.23 16.36 Equipment services 13.00 13.00 13.00 13.00 13.00 13.50 a? Self-insurance 5.00 5.10 5.10 5.10 5.10 5.10 Information services 12.00 12.00 12.00 11.00 11.00 11.00 Total internal services 45.63 45.83 45.33 45.33 45.33 45.96 C) Total full-time equivalents 684.43 682.20 678.75 658.05 611.82 616.77 Source: City operating budget (1)Consolidated services with Haltom City, City of Richland Hills and City of Watauga for Communication & Detention Centers (2) Increase due to new staff members for the Recreation Center 146 Packet Pg. 311 F.1.a Table 15 0 2009 2008 2007 2006 a� 4.75 5.25 5.25 5.25 5.00 5.00 5.00 5.00 15.50 16.50 14.00 14.00 23.50 23.50 23.50 24.50 Ln 1.00 1.00 1.00 1.00 CD CM 1.00 1.00 1.00 1.00 11.30 11.30 12.30 11.30 19.75 18.75 18.75 18.66 3.00 3.00 3.00 3.00 - 6.75 6.75 7.19 7.19 r_ 91.55 92.05 90.99 90.90 165.22 164.65 159.65 159.65 CL 91.00 91.00 92.00 92.00 256.22 255.65 251.65 251.65 to 118.90 120.22 120.30 114.94 C) 28.16 28.16 23.33 23.33 Ln CD 3.00 3.00 3.00 3.00 CN 150.06 151.38 146.63 141.27 x 79.68 80.18 79.18 76.18 U) 16.36 15.86 14.23 14.23 11.65 11.65 11.65 11.65 6.00 6.00 6.00 6.00 12.00 12.00 12.00 12.00 46.01 45.51 43.88 43.88 C) 623.52 624.77 612.33 603.88 147 Packet Pg. 312 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Operating Indicators by Function/Program Last Ten Fiscal Years (unaudited) Fiscal Year O a 2015 2014 2013 2012 0 General government _ Planning and Inspections Construction Commercial units 65 35 25 91 (13) Commercial value $ 11,481,833 $ 14,309,733 $ 15,498,935 $ 7,533,480 (13) Residential units 122 321 189 168 Residential value $ 36,838,614 $ 27,754,692 $ 46,472,244 $ 42,138,527 Ln Public safety Police Law violations(1) 3,144 3,014 3,215 3,463 Part one offenses 1,868 1,644 1,960 1,791 Traffic violations 21,305 17,052 22,215 22,155 _ Calls for service 112,313 107,393 114,269 115,644 Case clearance% 28% 23% 58% 26% 2 Fire Total responses 7,475 7,276 7,189 7,064 0 Fire responses 2,221 2,412 2,275 2,235 r_ EMS responses 5,254 4,864 4,914 4,829 2 %responses<5 minutes 74% 70% 58% 70% Total inspections 1,232 1,201 768 (14) - (12) Culture and recreation U) Parks and recreation CL i Water park admissions 227,525 219,077 242,490 272,336 Golf rounds played 43,250 45,339 48,229 50,524 Library Number of volumes 214,867 202,103 204,302 206,840 Annual circulation 939,022 854,452 771,994 947,883 Annual loans per capita 14.16 13.01 12.17 14.95 U_ Public works Water Ln Avg daily consumption(3) 1,165,254 1,219,696 1,278,326 1,306,524 Peak daily consumption(3) 2,582,620 2,441,043 2,624,198 2,938,102 14 Streets Street overlay-miles 4 4 1 4 X Concrete pavement repair-sq.ft. 3,113 6,258 6,488 5,322 Pothole repair-sq.ft. 4,467 2,677 2,152 4,577 Street cut-sq.ft. 153,559 163,910 86,160 (15) 176,844 Sign fabrication 1,179 850 973 852 .� Source: City records g' (1)Excludes traffic violations. (2)Course closed from July 1st to September 15th,2006 for renovations. (3)Cubic feet. (4)Method of calculation was changed by Police Department. (5)Overlay was moved into the 2008-2009 Budget Year because Public Works was assessing program options. (6)Library closed from March 20th to April 19th,2008 in order to move to new location. C3 (7)Loan period changed from 2 weeks to 3 weeks. (8)FY 2009-2010 calculated on a Fiscal Year basis and additional call types now being tracked. 4) (9)Reported from the National Incident-Based Reporting System annual report. (10)Decline in response time is due to in-town traffic increasing because of the Hwy 820 expansion causing a longer drive time. g' (11)Reinspections are down due to corrected violations. (12)Inspection numbers unavailable for the year due to changes in the computer record management system and procedures. (13)Remodels included in error. (14)Conversion to new computer record management system incomplete therefore Company Inspections are unavailable. (15)Decrease due to the installation of the Fibre Crete this year. 148 Packet Pg. 313 F.1.a Table 16 0 a 2011 2010 2009 2008 2007 2006 OS a� S 24 47 41 51 56 40 $ 3,489,824 $ 4,578,000 $ 3,790,657 $ 7,907,730 $ 15,083,593 $ 53,708,815 122 66 55 116 235 382 $ 27,218,868 $ 14,289,559 $ 13,295,377 $ 31,498,499 $ 54,190,911 $ 79,332,989 Ln T- 3,574 (9) 4,071 4,270 4,289 3,403 4,694 2,075 (9) 3,452 3,190 3,458 3,216 3,318 4) 20,733 24,747 25,111 28,899 20,010 22,124 _ 137,243 137,645 (8) 123,877 124,212 103,137 107,096 (4) 42% 40% 41% 41% 36% 37% A 6,850 6,555 6,551 6,929 6,749 5,770 0 1,762 1,371 1,617 1,843 1,651 1,633 r_ 5,088 5,184 4,934 5,086 5,098 4,137 0 51% (10) 73% 73% 72% 72% 73% 2,005 (11) 2,169 2,308 2,412 2,007 2,033 U) 2 CL 270,845 242,554 231,379 233,654 248,205 260,869 51,264 47,594 54,373 56,192 48,838 39,603 (2) to 200,982 196,042 192,044 180,737 177,270 179,366 840,667 828,889 764,195 606,639 (6)(7) 660,627 697,013 13.26 12.48 11.56 9.23 (6) 10.31 10.97 U- Ln C3 T- 1,521,220 1,205,104 1,213,697 1,317,622 1,178,439 1,397,254 CD 3,091,043 2,627,674 2,751,337 2,963,770 2,449,372 2,701,738 U) m 6 4 5 2 (5) 8 9 x 9,372 16,163 12,655 4,404 (5) 14,694 9,485 3,974 6,786 4,303 5,499 (5) 10,480 8,738 162,577 193,400 162,446 121,809 (5) 156,141 179,703 935 953 1,119 1,455 2,040 1,795 .� 4- 0 C3 149 Packet Pg. 314 F.1.a CITY OF NORTH RICHLAND HILLS,TEXAS Capital Asset Statistics by Function/Program Last Ten Fiscal Years (unaudited) 0 a Fiscal Year 4) 2015 2014 2013 2012 Public safety Police Stations 1 1 1 1 Fire LL Stations 4 4 4 4 Fire hydrants 2,219 2,202 2,162 2,127 Culture and recreation Ln Parks and recreation Parks 33 33 33 33 CM Park acreage 734 734 709 709 Playgrounds 22 22 20 20 Trails-miles 30 30 21 21 _ Golf courses 1 1 1 1 Recreations centers 1 1 1 1 2 LL Athletic fields 53 53 53 53 Senior centers 1 1 1 1 (8) Library Libraries 1 1 1 1 Public works Water mains-miles 367 356 355 351 Water connections 21,329 21,141 20,936 20,792 CL Wastewater lines-miles 252 (9) 293 292 290 Wastewater connections 19,919 19,761 19,603 19,469 Storm drain-miles 139 139 139 139 Streets-miles 238 238 238 238 Street lights 2,545 2,545 2,545 2,545 LL Source: City records Cn Ln (1)Subtracted Thomas Acres(BISD property no longer maintaining) CM (2)Oncor performed a city-wide audit of streetlights in 2006. Subsequent years'counts are based on Oncor billings. U) (3)Acquisition of easements for Little Bear Creek trail. (4)Department implemented a complete inventory system in 2009 that will provide more accurate counts. (5)Indicates active accounts. Source: NRH Utility Customer Service Department. (6)Adjusted to include Stormy Plaza completed in 2010. (7)Added Randy Moresi Trail in 2011. (8)New Senior Center in NRH Centre combined/closed Dan Echols and Bursey Road Senior Citizen Centers (9)Department's system inventory report was calculated by outside source. 4- 0 C) 150 Packet Pg. 315 F.1.a Table 17 0 2011 2010 2009 2008 2007 2006 20 a� 1 1 1 1 1 1 4 4 4 4 4 4 2,125 2,139 2,100 (4) 2,119 2,077 1,900 Ln T- 33 (6) 32 32 32 32 31 CD 709 (6) 708 708 (3) 706 706 (1) 741 20 20 20 20 20 21 21 (7) 20 20 20 20 15 _ 1 1 1 1 1 1 1 1 1 1 1 1 A 53 53 53 53 53 (1) 59 2 2 2 2 2 2 r_ 1 1 1 1 1 1 U) 346 356 341 (4) 356 354 342 20,522 20,420 20,302 20,282 20,516 19,784 CL 288 288 285 (4) 245 244 234 19,240 19,141 19,068 (5) 19,053 19,350 18,618 to 139 139 139 138 137 135 238 237 235 234 232 227 2,540 2,531 2,525 2,518 2,513 2,431 (2) Ln C) T— U) m x 4— 0 C) 151 Packet Pg. 316 F.2 "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Consider Ordinance No. 3393, authorizing the issuance Of "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2016" in an amount not to exceed $6,000,000; providing for the payment of such obligations by the levy of an ad valorem tax upon all taxable property within the City and a limited pledge of the net revenues of the City's waterworks and sewer system; and resolving other matters incident and relating to the issuance, payment, security and delivery of such obligations, including delegating certain matters to an authorized City official within certain specified parameters. Presenter: Kent Austin, Finance Director Summary: Discussion and request for authorization to issue Certificates of Obligation. General Description: On January 11, 2016, the City Council authorized the City Secretary to publish a notice in a newspaper of general circulation of the intent of the city to issue Certificates of Obligation. Notices were published in accordance with State law. The sale of up to $6,000,000 of Certificates of Obligation (C.O.$) will be considered at the February 22 City Council meeting. The C.O.s will be used to finance the following projects: $2,600,000 NRH2O slide tower structure replacement $2,600,000 Total aquatic park $240,000 Ambulance replacement, unit 958 $375,000 Gradall excavator replacement, unit 6627 $295,000 Street sweeper replacement, unit 6627 $910,000 Total equipment $150,000 Project UT 1601 Franklin Court sewer addition and Gifford connection $420,000 Project UT 1603 Miscellaneous water/sewer main replacements $125,000 Project UT 1604 Sanitary sewer line replacements (Crabtree and Onyx N.) $420,000 Project UT 1605 Small water main replacements $1,115,000 Total water/sewer projects Packet Pg. 317 F.2 "ArRok., NORTH KIC;HLAND HILLS $1,000,000 Preventive street maintenance $1,000,000 Total street projects $5.625,000 Grand total This will be a negotiated sale instead of a competitive bid. For this negotiation, the City is working with BOSC, Inc., as Senior Managing Underwriter and R.W. Baird as co- managing underwriter for the marketing of the bonds. The firms were chosen based on predetermined criteria from the City's policy on negotiated sales, including, but not limited to, their ranking in prior NRH competitive bond sales. Negotiated interest rates will be determined on Monday, February 22, and will be presented to Council for approval at the Council meeting. The proposed ordinance presented here authorizes the City's "Pricing Officer" to act on behalf of the City within the following parameters- (i) The aggregate original principal amount of the Certificates shall not exceed $6,000,000; (ii) The maximum true interest cost for the Certificates shall not exceed 3.50%; and (iii) The maximum maturity date of the Certificates shall not exceed February 15, 2036. The city received Certificates of Obligation ratings from both Moody's Investors Service and Standard and Poor's. Moody's has reaffirmed the City's credit rating of Aa2. Standard and Poor's has reaffirmed the City's credit rating of AA+. The City Council will be requested to approve the ordinance prepared by our bond counsel, Norton, Rose, Fulbright. The ordinance is enclosed for your consideration. This ordinance also authorizes all other necessary actions such as paying agent/registrar agreements. Recommendation: Authorize the issuance of the "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2016" on the terms reviewed at this meeting and adopt Ordinance No. 3393 authorizing such certificates. Packet Pg. 318 F.3 lqmk 1W Rib "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Consider Ordinance No. 3394, authorizing the issuance Of "City of North Richland Hills, Texas, General Obligation Refunding Bonds, Series 2016" in an amount not to exceed $3,130,000 to achieve debt service savings for the City; levying a continuing direct annual ad valorem tax for the payment of such Bonds; and resolving other matters incident and related to the issuance, sale, payment and delivery of such Bonds, including delegating certain matters to an authorized City official within certain specified parameters. Presenter: Kent Austin, Finance Director Summary: Discussion and request for authorization to issue general obligation (G.0) bonds, and consider the refunding of outstanding general obligation bonds. General Description: City Council is being asked to consider a general obligation refunding bond sale totaling approximately $3,130,000. A negotiated sale is scheduled for Monday, February 22, 2016. The sale will include the refunding of previously issued City of North Richland Hills bonds from 2007 and 2008. Current market conditions in the form of lower interest rates are favorable to refund (refinance) previously issued bonds. The lower interest rates will save interest expense over several years. As mentioned with the Certificates of Obligation agenda item, this will be a negotiated sale instead of a competitive bid. The reason for this is the refunding of previously issued bonds. For this negotiation, we will be working with BOSC, Inc., serving as senior underwriters for the marketing of the bonds. BOSC was chosen based on predetermined criteria from the City's policy on negotiated sales, including, but not limited to, their ranking in prior NRH competitive bond sales. R.W. Baird will serve as co-managing underwriter. Negotiated Interest rates will be determined on Monday, February 22 and will be presented to Council for approval at the City Council meeting. Also as mentioned with the Certificates of Obligation agenda item, the ordinance proposed here authorizes the City pricing officer to act on behalf of the City in selling and delivering the Bonds and carrying out related matters within the following parameters: Packet Pg. 319 F.3 lqmk 1W Rib "ArRok., NORTH KIC;HLAND HILLS (i) The aggregate original principal amount of the Bonds shall not exceed $3,130,000; (ii) The refunding must produce a net present value debt service savings of at least 3%, net of any City contribution; (iii)The maximum true interest cost for the Bonds shall not exceed 2.75%. and (iv)The maximum maturity date of the Bonds shall not exceed February 15, 2028. Rating conferences with Standard & Poor's and Moody's were recently held. The City received General Obligation Bond ratings from both firms. Moody's reaffirmed the City's AA2 rating, and Standard & Poor's reaffirmed the City's AA+ rating. The Paying Agent/Registrar Agreement, the Purchase Contract, and the Special Escrow Agreement will be presented to City Council at the regular meeting on the 22nd. Recommendation: Authorize the issuance of the "City of North Richland Hills, Texas, General Obligation Refunding Bonds, Series 2016," on the terms reviewed at this meeting and adopt Ordinance No. 3394 authorizing such bonds and the redemption of the obligations being refunded. Packet Pg. 320 F.3.a ORDINANCE NO. 3394 AN ORDINANCE authorizing the issuance of "CITY OF NORTH cm RICHLAND HILLS, TEXAS, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2016"; levying a continuing direct annual ad valorem tax for the payment of said Bonds; resolving other matters incident and o related to the issuance, sale, payment and delivery of said Bonds; establishing procedures for the sale and delivery of said Bonds; and delegating matters relating to the sale and issuance of said Bonds to an authorized City official. WHEREAS, the City of North Richland Hills, Texas (the "City") currently has outstanding obligations of the City of the following issues or series (hereinafter together called the "Refunded Obligations"): 2M (1) "City of North Richland Hills, Texas General Obligation Refunding and Improvement Bonds, Series 2007," dated April 15, 2007; (2) "City of North Richland Hills, Texas Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2007," dated April 15, 2007; and (3) "City of North Richland Hills, Texas Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2008," dated April 15, 2008; and co co WHEREAS, pursuant to the provisions of Texas Government Code, Chapter 1207, as amended ("Chapter 1207"), the City Council of the City (the "Council") is authorized to issue refunding bonds and deposit the proceeds of sale directly with any place of payment for the Refunded Obligations, or other authorized depository, and such deposit, when made in accordance with Chapter 1207 and the ordinances authorizing the issuance of the Refunded Obligations, shall constitute the making of firm banking and financial arrangements for the discharge and final payment of the Refunded Obligations; and cm WHEREAS, the City shall by this Ordinance, in accordance with the provisions of Texas Government Code, Section 1207.007, as amended, delegate to a Pricing Officer (hereinafter designated) the authority to determine the principal amount and certain other specified terms of U) the Bonds to be issued, negotiate the terms of sale thereof and select the specific maturities, in whole or in part, of the Refunded Obligations to be refunded; and WHEREAS, the Council hereby finds and determines that it is a public purpose and in 2 the best interests of the City to refund the Refunded Obligations in order to achieve a present value debt service savings, with such savings, among other information and terms, to be included in a pricing certificate (the "Pricing Certificate") to be executed by the Pricing Officer, all in accordance with the provisions of Texas Government Code, Section 1207.007, as amended; now, therefore 27005561.3/11600460 Packet Pg. 321 F.3.a BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: SECTION 1. Authorization - Series Designation - Principal Amount - Purpose - Bond Date. General obligation refunding bonds of the City shall be and are hereby authorized to be co issued in the maximum aggregate principal amount hereinafter set forth to be designated and bear the title "CITY OF NORTH RICHLAND HILLS, TEXAS, GENERAL OBLIGATION REFUNDING BONDS, SERIES 2016", or such other designation as specified in the Pricing Certificate (herein referred to as the "Bonds"), for the purpose of providing funds for the discharge and final payment of certain obligations of the City (described in the preamble hereof and finally identified in the Pricing Certificate and referred to herein as the "Refunded Obligations") and to pay the costs and expenses of issuance, in accordance with the authority conferred by and in conformity with the Constitution and laws of the State of Texas, including Chapter 1207. The Bonds shall be dated (the "Bond Date") as provided in the Pricing Certificate. SECTION 2. Fully Registered Obligations - Terms. The Bonds shall be issued as fully registered obligations, without coupons, and (other than the Initial Bonds referenced in Section 8 hereof) shall be in denominations of $5,000 or any integral multiple (within a Stated Maturity) thereof, shall be lettered "R" and numbered consecutively from one (1) upward and principal shall become due and payable on a date certain in each of the years (the "Stated Maturities") and in amounts and bear interest at the rate(s) per annum in accordance with the details of the Bonds as set forth in the Pricing Certificate. U) The Bonds shall bear interest on the unpaid principal amounts from the date specified in the Pricing Certificate at the rate(s) per annum shown in the Pricing Certificate (calculated on co co the basis of a 360-day year consisting of twelve 30-day months). Interest on the Bonds shall be payable in each year, on the dates, and commencing on the date, set forth in the Pricing Certificate. SECTION 3. Delegation of Authority to Pricing Officer. (a) As authorized by Texas Government Code, Section 1207.007, as amended, the City Manager or the Director of Finance of the City (either, the "Pricing Officer") is hereby authorized to act on behalf of the City in selling and delivering the Bonds and carrying out the other procedures specified in this Ordinance, including selection of the specific maturities or series, in whole or in part, of the Refunded Obligations to be refunded, determining the aggregate principal amount of the Bonds, the date cm of the Bonds, any additional or different designation or title by which the Bonds shall be known, the price at which the Bonds will be sold, the manner of sale (negotiated, privately placed or competitively bid), the years in which the Bonds will mature, the principal amount to mature in each of such years, the rate of interest to be borne by each such maturity, the date from which interest on each series of the Bonds will accrue, the interest payment dates, the record date, the price and terms upon and at which the Bonds shall be subject to redemption prior to maturity at the option of the City, as well as any mandatory sinking fund redemption provisions, determination of the use of a book-entry-only securities clearance, settlement and transfer 2 system, the designation of a paying agent/registrar, the designation of an escrow agent, if applicable, satisfying the requirements of Chapter 1207, the terms of any bond insurance applicable to the Bonds, including any modification of the continuing disclosure undertaking contained in Section 31 hereof as may be required by the purchasers of the Bonds in connection with any amendments to Rule 15c2-12, and all other matters relating to the issuance, sale and delivery of the Bonds, all of which shall be specified in the Pricing Certificate, provided that: 27005561.3/11600460 2 Packet Pg. 322 F.3.a (i) the aggregate original principal amount of the Bonds shall not exceed $3,130,000; cm (ii) the refunding must produce a net present value debt service 2 savings of at least 3%, net of any City contribution; co (iii) the maximum true interest cost for the Bonds shall not exceed 2.75%; (iv) the maximum maturity date of the Bonds shall not exceed E February 15, 2028. 4- The execution of the Pricing Certificate shall evidence the sale date of the Bonds by the City to the Purchasers (hereinafter defined). 2M If the Pricing Officer determines that bond insurance results in a net reduction of the City's interest costs associated with the Bonds, then the Pricing Officer is authorized, in connection with effecting the sale of the Bonds, to make the selection of the municipal bond insurance company for the Bonds (the "Insurer") and to obtain from the Insurer a municipal bond insurance policy or policies in support of the Bonds. The Pricing Officer shall have the authority to determine the provisions of the commitment for any such policy and to execute any documents to effect the issuance of said policy by the Insurer. (b) In establishing the aggregate principal amount of the Bonds, the Pricing Officer shall establish an amount for the Bonds not exceeding the amount authorized in subsection (a)(i) above, which shall be sufficient in amount to provide for the purposes for which the Bonds co co are authorized and to pay costs of issuing the Bonds. The delegation made hereby shall expire if not exercised by the Pricing Officer within 180 days of the date hereof. The Bonds shall be sold to the purchaser(s)/underwriter(s) named in the Pricing Certificate (the "Purchasers"), at such price and with and subject to such terms as set forth in the Pricing Certificate and the Purchase Contract (hereinafter defined), and may be sold by negotiated or competitive sale or by private placement. The Pricing Officer is hereby delegated the authority to designate the Purchasers, which delegation shall be evidenced by the execution of the Pricing Certificate. SECTION 4. Terms of Payment - Paying Agent/Registrar. The principal of, premium, if any, and the interest on the Bonds, due and payable by reason of maturity, redemption or cm otherwise, shall be payable only to the registered owners or holders of the Bonds (hereinafter called the "Holders") appearing on the registration and transfer books maintained by the Paying Agent/Registrar (as defined below), and the payment thereof shall be in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of U) public and private debts, and shall be without exchange or collection charges to the Holders. The selection and appointment of the paying agent/registrar for the Bonds (the "Paying Agent/Registrar") shall be as provided in the Pricing Certificate. Books and records relating to 2 the registration, payment, exchange and transfer of the Bonds (the "Security Register") shall at all times be kept and maintained on behalf of the City by the Paying Agent/Registrar, all as provided herein, in accordance with the terms and provisions of a "Paying Agent/Registrar Agreement," substantially in the form attached hereto as Exhibit A and such reasonable rules and regulations as the Paying Agent/Registrar and the City may prescribe. The Pricing Officer is hereby authorized to execute and deliver such Paying Agent/Registrar Agreement in connection with the delivery of the Bonds. The City covenants to maintain and provide a Paying 27005561.3/11600460 3 Packet Pg. 323 F.3.a Agent/Registrar at all times until the Bonds are paid and discharged, and any successor Paying Agent/Registrar shall be a commercial bank, trust company, financial institution, or other entity qualified and authorized to serve in such capacity and perform the duties and services of Paying cm Agent/Registrar. Upon any change in the Paying Agent/Registrar for the Bonds, the City agrees 2 ° to promptly cause a written notice thereof to be sent to each Holder by United States Mail, first co class postage prepaid, which notice shall also give the address of the new Paying Agent/Registrar. 0 The Bonds shall be payable at their Stated Maturities or upon their earlier redemption, only upon the presentation and surrender of the Bonds to the Paying Agent/Registrar at its designated offices provided in the Pricing Certificate (the "Designated Payment/Transfer Office"); provided, however, while a Bond is registered to Cede & Co., the payment thereof upon a partial redemption of the principal amount thereof may be accomplished without presentation and surrender of such Bond. Interest on a Bond shall be paid by the Paying Agent/Registrar to the Holders whose names appears in the Security Register at the close of business on the Record Date (which shall be set forth in the Pricing Certificate) and such interest payments shall be made (i) by check sent United States Mail, first class postage prepaid, to the address of the Holder recorded in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder. If the date for the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the Designated Payment/Transfer Office of the Paying Agent/Registrar is located are authorized by law or executive order to be closed, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to be closed; and payment on such date shall have the same force and effect as if made on the original date payment was due. co co In the event of a non-payment of interest on one or more maturities of the Bonds on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such past due interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder of the Bonds appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. cm SECTION 5. Registration - Transfer - Exchange of Bonds - Predecessor Bonds. The Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the name and address of each and every Holder of the Bonds issued under and pursuant to the provisions of this Ordinance, or if appropriate, the nominee thereof. Any Bond may be transferred or exchanged for Bonds of like maturity and amount and in authorized denominations upon the Security Register by the Holder, in person or by his duly authorized agent, upon surrender of such Bond to the Paying Agent/Registrar at its Designated Payment/Transfer Office for 2 cancellation, accompanied by a written instrument of transfer or request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. Upon surrender for assignment or transfer of any Bond (other than the Initial Bonds authorized in Section 8 hereof) for transfer at the Designated Payment/Transfer Office of the Paying Agent/Registrar, one or more new Bonds, executed on behalf of and furnished by the 27005561.3/11600460 4 Packet Pg. 324 F.3.a City, shall be registered and issued to the assignee or transferee of the previous Holder; such Bonds to be of authorized denominations, of like Stated Maturity and of a like aggregate principal amount as the Bond or Bonds surrendered for transfer. cm U) 2 At the option of the Holder, Bonds (other than the Initial Bonds authorized in Section 8 co hereof) may be exchanged for other Bonds of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Bonds surrendered for exchange, upon surrender of the Bonds to be exchanged at the Designated Payment/Transfer Office of the Paying Agent/Registrar. Whenever any Bonds are surrendered for exchange, the Paying Agent/Registrar shall register and deliver new Bonds, executed on behalf of and furnished by the City, to the Holder requesting the exchange. 4- All Bonds issued upon any such transfer or exchange of Bonds shall be delivered to the Holders at the Designated Payment/Transfer Office of the Paying Agent/Registrar or sent by United States Mail, first class postage prepaid, to the Holders, and, upon the registration and delivery thereof, the same shall be the valid obligations of the City, evidencing the same obligation to pay and entitled to the same benefits under this Ordinance, as the Bonds surrendered in such transfer or exchange. All transfers or exchanges of Bonds pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange of any tax or other governmental charges required to be paid with respect to such transfer or exchange. U) Bonds canceled by reason of an exchange or transfer pursuant to the provisions hereof co a. co are hereby defined to be "Predecessor Bonds," evidencing all or a portion, as the case may be, of the same obligation to pay evidenced by the new Bond or Bonds registered and delivered in the exchange or transfer therefor. Additionally, the term "Predecessor Bonds" shall include any mutilated, lost, destroyed, or stolen Bond for which a replacement Bond has been issued, registered, and delivered in lieu thereof pursuant to the provisions of Section 11 hereof, and such new replacement Bond shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Bond. Neither the City nor the Paying Agent/Registrar shall be required to transfer or exchange any Bond called for redemption, in whole or in part, within forty-five (45) days of the date fixed cm for the redemption of such Bond; provided, however, such limitation on transferability shall not be applicable to an exchange by the Holder of the unredeemed balance of a Bond called for redemption in part. SECTION 6. Book-Entry-Only Transfers and Transactions. Notwithstanding the provisions contained in the applicable sections hereof relating to the payment and transfer/exchange of the Bonds, the City hereby approves and authorizes the use of "Book- Entry-Only" securities clearance, settlement, and transfer system provided by The Depository 2 Trust Company, a limited purpose trust company organized under the laws of the State of New York ("DTC"), in accordance with the requirements and procedures identified in the current DTC Operational Arrangements memorandum, as amended, the Blanket Issuer Letter of Representations, by and between the City and DTC, and the Letter of Representations from the Paying Agent/Registrar to DTC (collectively, the "Depository Agreement") relating to the Bonds. 27005561.3/11600460 5 Packet Pg. 325 F.3.a In the event the Pricing Officer elects to utilize DTC's "Book-Entry-Only" System, which election shall be made by the Pricing Officer in the Pricing Certificate, pursuant to the Depository Agreement and the rules of DTC, the Bonds shall be deposited with DTC and who cm shall hold said Bonds for its participants (the "DTC Participants"). While the Bonds are held by 2 I- DTC under the Depository Agreement, the Holder of the Bonds on the Security Register for all 0 purposes, including payment and notices, shall be Cede & Co., as nominee of DTC, notwithstanding the ownership of each actual purchaser or owner of each Bond (the "Beneficial Owners") being recorded in the records of DTC and DTC Participants. In the event DTC determines to discontinue serving as securities depository for the E Bonds or otherwise ceases to provide book-entry clearance and settlement of securities transactions in general or the City determines that DTC is incapable of properly discharging its duties as securities depository for the Bonds, the City covenants and agrees with the Holders of the Bonds to cause Bonds to be printed in definitive form and provide for the Bond certificates to be issued and delivered to DTC Participants and Beneficial Owners, as the case may be. Thereafter, the Bonds in definitive form shall be assigned, transferred and exchanged on the Security Register maintained by the Paying Agent/Registrar and payment of such Bonds shall be made in accordance with the provisions of Sections 3, 4 and 5 hereof. SECTION 7. Execution - Registration. The Bonds shall be executed on behalf of the City by the Mayor or the Mayor Pro Tern under the City's seal reproduced or impressed thereon and attested by the City Secretary or Assistant City Secretary. The signature of said officials on the Bonds may be manual or facsimile. Bonds bearing the manual or facsimile signatures of individuals who are or were the proper officials of the City on the date of the adoption of this U) Ordinance shall be deemed to be duly executed on behalf of the City, notwithstanding that such individuals or either of them shall cease to hold such offices at the time of delivery of the Bonds co co to the initial purchaser(s) and with respect to Bonds delivered in subsequent exchanges and transfers, all as authorized and provided in Texas Government Code, Chapter 1201, as amended. No Bond shall be entitled to any right or benefit under this Ordinance, or be valid or obligatory for any purpose, unless there appears on such Bond either a certificate of registration substantially in the form provided in Section 9(c), manually executed by the Comptroller of Public Accounts of the State of Texas, or his or her duly authorized agent, or a certificate of registration substantially in the form provided in Section 9(d), manually executed by an authorized officer, employee or representative of the Paying Agent/Registrar, and either such cm certificate duly signed upon any Bond shall be conclusive evidence, and the only evidence, that such Bond has been duly certified, registered, and delivered. SECTION 8. Initial Bonds. The Bonds herein authorized shall be initially issued as fully T registered Bonds as specified in the Pricing Certificate, being a single, fully registered Bond in the aggregate principal amount noted and principal installments to become due and payable as provided in the Pricing Certificate and numbered T-1 (hereinafter called the "Initial Bond") and the Initial Bond shall be registered in the name of the initial purchaser(s) or the designee 2 thereof. The Initial Bond shall be the Bond submitted to the Office of the Attorney General of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the initial purchaser(s). Any time after the delivery of the Initial Bond, the Paying Agent/Registrar, pursuant to written instructions from the initial purchaser(s), or the designee thereof, shall cancel the Initial Bond delivered hereunder and exchange therefor definitive Bonds of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates for transfer and delivery to the Holders named at 27005561.3/11600460 6 Packet Pg. 326 F.3.a the addresses identified therefor; all pursuant to and in accordance with such written to instructions from the initial purchaser(s), or the designee thereof, and such other information and documentation as the Paying Agent/Registrar may reasonably require. cm U) 2 SECTION 9. Forms. co (a) Forms Generally. The Bonds, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Registration Certificate of Paying Agent/Registrar, and the form of Assignment to be printed on each of the Bonds, shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and, with the Bonds to be completed and modified with the information set forth in the Pricing Certificate, may have such letters, numbers, or other marks of identification (including identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including insurance legends on insured Bonds and any reproduction of an opinion of counsel) thereon as may, consistently herewith, be ' established by the City or determined by the Pricing Officer. The Pricing Certificate shall set forth the final and controlling forms and terms of the Bonds. Any portion of the text of any Bonds may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Bond. The definitive Bonds and the Initial Bond shall be printed, lithographed, engraved, typewritten, photocopied or otherwise reproduced in any other similar manner, all as determined by the officers executing such Bonds as evidenced by their execution thereof. (b) Form of Definitive Bonds. co co REGISTERED PRINCIPAL AMOUNT NO. R- $ UNITED STATES OF AMERICA STATE OF TEXAS CITY OF NORTH RICHLAND HILLS, TEXAS GENERAL OBLIGATION REFUNDING BOND SERIES 2016 cm Bond Date: Interest Rate: Stated Maturity: CUSIP No.: February 15, 2016 % 20_ Registered Owner: Principal Amount: DOLLARS The City of North Richland Hills (hereinafter referred to as the "City"), a body corporate 2 and political subdivision in the County of Tarrant, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the Registered Owner named above, or the registered assigns thereof, on the Stated Maturity date specified above the Principal Amount hereinabove stated [(or so much thereof as shall not have been paid upon prior redemption)], and to pay interest on the unpaid principal amount hereof from the interest E payment date next preceding the "Registration Date" of this Bond appearing below (unless this Bond bears a "Registration Date" as of an interest payment date, in which case it shall bear 27005561.3/11600460 7 Packet Pg. 327 F.3.a interest from such date, or unless the "Registration Date" of this Bond is prior to the initial interest payment date in which case it shall bear interest from the date of delivery to initial purchasers) at the per annum rate of interest specified above computed on the basis of a 360 cm day year of twelve 30 day months; such interest being payable on August 15 and February 15 in 2 ° each year, commencing August 15, 2016, until maturity [or prior redemption]. Principal of this co Bond is payable at its Stated Maturity [or upon its prior redemption] to the registered owner hereof, upon presentation and surrender, at the designated offices of the Paying Agent/Registrar executing the registration certificate appearing hereon, initially in or, with respect to a successor Paying Agent/Registrar, at the designated offices of such successor (the "Designated Payment/Transfer Office")[; provided, however, while this Bond is registered to Cede & Co., the payment of principal upon a partial redemption of the principal amount hereof may be accomplished without presentation and surrender of this Bond]. Interest is payable to the registered owner of this Bond (or one or more Predecessor Bonds, as defined in the Ordinance hereinafter referenced) whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date, and interest shall be paid by the Paying Agent/Registrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. If the date for the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the Designated Payment/Transfer Office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. All co co payments of principal of, premium, if any, and interest on this Bond shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. This Bond is one of the series specified in its title issued in the aggregate principal amount of $ (herein referred to as the "Bonds") for the purpose of providing funds for the discharge and final payment of certain outstanding obligations of the City and to to pay the costs and expenses of issuance, under and in strict conformity with the Constitution and laws of the State of Texas, including Texas Government Code, Chapter 1207, as amended, and cm LL pursuant to an Ordinance adopted by the City Council of the City (herein referred to as the "Ordinance"). [The Bonds maturing on the dates hereinafter identified (the "Term Bonds") are subject to mandatory redemption prior to maturity with funds on deposit in the Interest and Sinking Fund established and maintained for the payment thereof in the Ordinance, and shall be redeemed in part prior to maturity at the price of par and accrued interest thereon to the date of redemption, and without premium, on the dates and in the principal amounts as follows: 2 Term Bonds due 20_ Term Bonds due 20_ Redemption Date Principal Amount Redemption Date Principal Amount 120 20 , 20_ 120 Stated maturity. 27005561.3/11600460 8 Packet Pg. 328 F.3.a The particular Term Bonds of a Stated Maturity to be redeemed on each redemption date shall be chosen by lot by the Paying Agent/Registrar; provided, however, that the principal amount of Term Bonds for a Stated Maturity required to be redeemed on a mandatory cm redemption date may be reduced, at the option of the City, by the principal amount of Term 2 a Bonds of like Stated Maturity which, at least fifty (50) days prior to a mandatory redemption co date, (1) shall have been acquired by the City at a price not exceeding the principal amount of such Term Bonds plus accrued interest to the date of purchase thereof, and delivered to the Paying Agent/Registrar for cancellation or (2) shall have been redeemed pursuant to the optional redemption provisions appearing below and not theretofore credited against a mandatory redemption requirement.] 4- [The Bonds shall not be subject to redemption prior to maturity. The Bonds maturing on and after 20_, may be redeemed prior to their Stated Maturities, at the option of the City, in whole or in part in principal amounts of$5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on , 20_, or on any date thereafter, at the redemption price of par, together with accrued interest to the date of redemption. At least thirty (30) days prior to the date fixed for any redemption of Bonds, the City shall cause a written notice of such redemption to be sent by United States Mail, first class postage prepaid, to the registered owners of each Bond to be redeemed, in whole or in part, at the address shown on the Security Register and subject to the terms and provisions relating thereto contained in the Ordinance. If a Bond (or any portion of its principal sum) shall have been duly called for redemption and notice of such redemption duly given, then upon such redemption U) date such Bond (or the portion of its principal sum to be redeemed) shall become due and payable, and interest thereon shall cease to accrue from and after the redemption date therefor; co co provided moneys for the payment of the redemption price and the interest on the principal amount to be redeemed to the date of redemption are held for the purpose of such payment by the Paying Agent/Registrar. In the event a portion of the principal amount of a Bond is to be redeemed and the registered owner is someone other than Cede & Co., payment of the redemption price of such principal amount shall be made to the registered owner only upon presentation and surrender of as such Bond to the Designated Payment/Transfer Office of the Paying Agent/Registrar, and a new Bond or Bonds of like maturity and interest rate in any authorized denominations provided by the Ordinance for the then unredeemed balance of the principal sum thereof will be issued to cm the registered owner, without charge. If a Bond is selected for redemption, in whole or in part, the City and the Paying Agent/Registrar shall not be required to transfer such Bond to an assignee of the registered owner within forty-five (45) days of the redemption date therefor; provided, however, such limitation on transferability shall not be applicable to an exchange by U) the registered owner of the unredeemed balance of a Bond redeemed in part. With respect to any optional redemption of the Bonds, unless moneys sufficient to pay the principal of and premium, if any, and interest on the Bonds to be redeemed shall have been received by the Paying Agent/Registrar prior to the giving of such notice of redemption, such 2 notice may state that said redemption is conditional upon the receipt of such moneys by the Paying Agent/Registrar on or prior to the date fixed for such redemption, or upon the satisfaction of any prerequisites set forth in such notice of redemption; and, if sufficient moneys are not received, such notice shall be of no force and effect, the City shall not redeem such Bonds and the Paying Agent/Registrar shall give notice, in the manner in which the notice of redemption was given, to the effect that the Bonds have not been redeemed.] 27005561.3/11600460 9 Packet Pg. 329 F.3.a The Bonds are payable from the proceeds of an ad valorem tax levied, within the limitations prescribed by law, upon all taxable property in the City. Reference is hereby made to the Ordinance, a copy of which is on file in the Designated Payment/Transfer Office of the cm Paying Agent/Registrar, and to all of the provisions of which the owner or holder of this Bond by 2 ° the acceptance hereof hereby assents, for definitions of terms; the description of and the nature co and extent of the tax levied for the payment of the Bonds; the terms and conditions relating to the transfer or exchange of this Bond; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the Holders; the rights, duties, and obligations of the City and the Paying Agent/Registrar; the terms and provisions upon which this Bond may be discharged at or prior to its maturity [or redemption], and deemed to be no longer Outstanding thereunder; and for other terms and provisions contained therein. Capitalized terms used herein and not otherwise defined have the meanings assigned in the Ordinance. This Bond, subject to certain limitations contained in the Ordinance, may be transferred on the Security Register only upon its presentation and surrender at the Designated Payment/Transfer Office of the Paying Agent/Registrar, with the Assignment hereon duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized agent. When a transfer on the Security Register occurs, one or more new fully registered Bonds of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued by the Paying Agent/Registrar to the designated transferee or transferees. The City and the Paying Agent/Registrar, and any agent of either, shall treat the registered owner whose name appears on the Security Register (i) on the Record Date as the owner entitled to payment of interest hereon, (ii) on the date of surrender of this Bond as the co owner entitled to payment of principal at the Stated Maturity[, or its redemption, in whole or in co part], and (iii) on any other date as the owner for all other purposes, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. In the event of nonpayment of interest on a Bond on a scheduled payment date and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each registered owner of a Bond appearing on the Security Register at the close of business on the last business day next cm preceding the date of mailing of such notice. It is hereby certified, recited, represented, and declared that the City is a body corporate and political subdivision duly organized and legally existing under and by virtue of the U) Constitution and laws of the State of Texas; that the issuance of the Bonds is duly authorized by law; that all acts, conditions, and things required to exist and be done precedent to and in the issuance of the Bonds to render the same lawful and valid obligations of the City have been properly done, have happened, and have been performed in regular and due time, form, and manner as required by the Constitution and laws of the State of Texas, and the Ordinance; that the Bonds do not exceed any Constitutional or statutory limitation; and that due provision has been made for the payment of the principal of and interest on the Bonds by the levy of a tax as aforestated. In case any provision in this Bond shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. The terms and provisions of this Bond and the Ordinance shall be construed in accordance with and shall be governed by the laws of the State of Texas. 27005561.3/11600460 10 Packet Pg. 330 F.3.a IN WITNESS WHEREOF, the City Council of the City has caused this Bond to be duly executed under the official seal of the City. cm CITY OF NORTH RICHLAND HILLS, TEXAS co 0 ATTEST: [Mayor][Mayor Pro Tem] 4- City Secretary (City Seal) , (c) Form of Registration Certificate of Comptroller of Public Accounts to appear on Initial Bond only. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS U) OFFICE OF THE COMPTROLLER OF PUBLIC ACCOUNTS ( REGISTER NO. co co THE STATE OF TEXAS 1 HEREBY CERTIFY that this Bond has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. S WITNESS my signature and seal of office this as Comptroller of Public Accounts cm of the State of Texas (Seal) (d) Form of Certificate of Paving Agent/Registrar to appear on Definitive Bonds only. REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR This Bond has been duly issued and registered in the name of the Registered Owner shown above under the provisions of the within-mentioned Ordinance; the bond or bonds of the above entitled and designated series originally delivered having been approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas, as shown by the records of the Paying Agent/Registrar. 27005561.3/11600460 11 Packet Pg. 331 F.3.a The designated office of the Paying Agent/Registrar in is the Designated Payment/Transfer Office for this Bond. cm U) ° 2 as Paying Agent/Registrar co Registration Date: 4- By: Authorized Signature (e) Form of Assignment. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee): (Social Security or other identifying number: the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of co substitution in the premises. co DATED: NOTICE: The signature on this assignment Signature guaranteed: must correspond with the name of the registered owner as it appears on the face of the within Bond in every particular. (f) The Initial Bond shall be in the form set forth therefor in subsection (b) of this Section, except the headinq and paragraph one shall be amended to read as follows: cm NO. T-1 $ UNITED STATES OF AMERICA STATE OF TEXAS CITY OF NORTH RICHLAND HILLS, TEXAS GENERAL OBLIGATION REFUNDING BOND SERIES 2016 Bond Date: 120 Registered Owner: Principal Amount: DOLLARS 27005561.3/11600460 12 Packet Pg. 332 F.3.a The City of North Richland Hills (hereinafter referred to as the "City"), a body corporate and political subdivision in the County of Tarrant, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the registered owner named cm above, or the registered assigns thereof, the Principal Amount hereinabove stated on 2 a in the years and in principal amounts in accordance with the following co schedule: STATED PRINCIPAL INTEREST MATURITY AMOUNT RATE(S) (Information to be inserted from Pricing Certificate) 4- [(without right of prior redemption)][(or so much principal thereof as shall not have been 0 redeemed prior to maturity)] and to pay interest on the unpaid principal installments hereof from the at the per annum rates of interest specified above computed on the basis of a 360-day year of twelve 30-day months; such interest being payable on 20_, and ' each and thereafter, until maturity [or prior redemption]. Principal installments of this Bond are payable in the year of maturity [or on a redemption date] to the registered owner hereof by (the "Paying Agent/Registrar"), upon presentation and surrender at its designated offices, initially in or, with respect to a successor paying agent/registrar, at the designated office of such successor (the "Designated Payment/Transfer Office"). Interest is payable to the registered owner of this Bond whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date," which is the day of the month next preceding each interest payment date, and interest shall be paid by the Paying Agent/Registrar by check sent United States Mail, first class co postage prepaid, to the address of the registered owner recorded in the Security Register or by co such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. All payments of principal of, premium, if any, and interest on this Bond shall be without exchange or collection charges to the registered owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. If the date for the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the city where the Designated Payment/Transfer Office of the Paying Agent/Registrar is located are authorized by law or executive order to be closed, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal cm holiday, or day on which banking institutions are authorized to be closed; and payment on such date shall have the same force and effect as if made on the original date payment was due. SECTION 10. Levy of Taxes. To provide for the payment of the "Debt Service Requirements" of the Bonds, being (i) the interest on the Bonds and (ii) a sinking fund for their redemption at maturity or a sinking fund of 2% (whichever amount is the greater) there is hereby levied, and there shall be annually assessed and collected in due time, form, and manner, a tax on all taxable property in the City, within the limitations prescribed by law, sufficient to pay such Debt Service Requirements on the Bonds as the same becomes due and payable; and such tax hereby levied on each one hundred dollars' valuation of taxable property in the City for the payment of the Debt Service Requirements of the Bonds shall be at a rate from year to year as will be ample and sufficient to provide funds each year to pay the principal of and interest on the Bonds while Outstanding; full allowance being made for delinquencies and costs of collection; the taxes levied, assessed, and collected for and on account of the Bonds shall be accounted for separate and apart from all other funds of the City and shall be deposited in the "SPECIAL 27005561.3/11600460 13 Packet Pg. 333 F.3.a 2016 BOND ACCOUNT", or such other fund designation as specified in the Pricing Certificate to (the "Interest and Sinking Fund") to be maintained at an official depository of the City's funds; and such tax hereby levied, and to be assessed and collected annually, is hereby pledged to the cm payment of the Bonds. 2 a PROVIDED, however, with regard to an payment to become due on the Bonds prior to co g Y p Y p the tax delinquency date next following the annual assessment of taxes levied which next follows the Bond Date, if any, sufficient current funds will be available and are hereby appropriated to make such payments; and the Mayor, Mayor Pro Tem, City Manager, Director of Finance and City Secretary of the City, individually or jointly, are hereby authorized and directed to transfer and deposit in the Interest and Sinking Fund such current funds which, together with the accrued interest received from the initial purchasers, will be sufficient to pay the payments due on the Bonds prior to the tax delinquency date next following the annual assessment of taxes levied which next follows the Bond Date. 2M The Mayor, Mayor Pro Tem, City Manager, Assistant City Manager, Director of Finance, City Secretary and Assistant City Secretary of the City, individually or jointly, are hereby authorized and directed to cause to be transferred to the Paying Agent/Registrar for the Bonds, from funds on deposit in the Interest and Sinking Fund, amounts sufficient to fully pay and discharge promptly each installment of interest and principal of the Bonds as the same accrues or matures or comes due by reason of redemption prior to maturity; such transfers of funds to be made in such manner as will cause collected funds to be deposited with the Paying Agent/Registrar on or before each principal and interest payment date for the Bonds. U) SECTION 11. Mutilated - Destroyed - Lost and Stolen Bonds. In case any Bond shall be mutilated, or destroyed, lost, or stolen, the Paying Agent/Registrar may execute and deliver a co co replacement Bond of like form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Bond; and with respect to a lost, destroyed, or stolen Bond, a replacement Bond may be issued only upon the approval of the City and after (i) the filing by the Holder with the Paying Agent/Registrar of evidence satisfactory to the Paying Agent/Registrar of the destruction, loss, or theft of such Bond, and of the authenticity of the ownership thereof and (ii) the furnishing to the Paying Agent/Registrar of indemnification in an amount satisfactory to hold the City and the Paying Agent/Registrar harmless. All expenses and charges associated with such indemnity and with to the preparation, execution and delivery of a replacement Bond shall be borne by the Holder of the Bond mutilated, or destroyed, lost, or stolen. cm Every replacement Bond issued pursuant to this Section shall be a valid and binding obligation of the City, and shall be entitled to all the benefits of this Ordinance equally and ratably with all other Outstanding Bonds; notwithstanding the enforceability of payment by anyone of the destroyed, lost, or stolen Bonds. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement and payment of mutilated, destroyed, 2 lost, or stolen Bonds. SECTION 12. Satisfaction of Obligation of City. If the City shall pay or cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on the Bonds, at the times and in the manner stipulated in this Ordinance and the Pricing Certificate, then the pledge of taxes levied under this Ordinance and all covenants, agreements, 27005561.3/11600460 14 Packet Pg. 334 F.3.a and other obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and satisfied. cm Bonds or any principal amount(s) thereof shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money sufficient to pay in CO full such Bonds or the principal amount(s) thereof at maturity or to the redemption date therefor, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar, or an authorized escrow agent, or (ii) Government Securities shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Securities have been certified by an independent accounting firm to mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any moneys deposited therewith, if any, to pay when due the principal of and interest on such Bonds, or the principal amount(s) thereof, on and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or waived or if irrevocable arrangements therefor acceptable to the Paying Agent/Registrar have been made) the redemption date thereof. The City covenants that no deposit of moneys or Government Securities will be made under this Section and no use made of any such deposit which would cause the Bonds to be treated as "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, or regulations adopted pursuant thereto. Any moneys so deposited with the Paying Agent/Registrar, or an authorized escrow agent, and all income from Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow agent, pursuant to this Section which is not required for the payment of U) the Bonds, or any principal amount(s) thereof, or interest thereon with respect to which such moneys have been so deposited shall be remitted to the City or deposited as directed by the CO CO City. Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of and interest on the Bonds and remaining unclaimed for a period of three (3) years after the Stated Maturity, or applicable redemption date, of the Bonds such moneys were deposited and are held in trust to pay shall upon the request of the City be remitted to the City against a written receipt therefor. Notwithstanding the above and foregoing, any remittance of funds from the Paying Agent/Registrar to the City shall be subject to any applicable unclaimed property laws of the State of Texas. Unless otherwise specified in the Pricing Certificate, the term "Government Securities" shall mean (i) direct noncallable obligations of the United States of America, including cm obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, (ii) noncallable obligations of an agency or instrumentality of the United States of America, including obligations unconditionally guaranteed or insured by the agency or instrumentality and, on the date of their acquisition or purchase by the City, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent, (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that, on the date of their acquisition or purchase by the City, are rated as to investment quality by a nationally recognized investment 2 rating firm not less than AAA or its equivalent and (iv) any other then authorized securities or obligations that may be used to defease obligations such as the Bonds under the then applicable laws of the State of Texas. The City reserves the right, subject to satisfying the requirements of (i) and (ii) above, to substitute other Government Securities for the Government Securities originally deposited, to 27005561.3/11600460 15 Packet Pg. 335 F.3.a reinvest the uninvested moneys on deposit for such defeasance and to withdraw for the benefit of the City moneys in excess of the amount required for such defeasance. CM Upon such deposit as described above, such Bonds shall no longer be regarded to be 2 outstanding or unpaid. Provided, however, the City has reserved the option, to be exercised at co the time of the defeasance of the Bonds, to call for redemption, at an earlier date, those Bonds which have been defeased to their maturity date, if the City: (i) in the proceedings providing for the firm banking and financial arrangements, expressly reserves the right to call the Bonds for redemption; (ii) gives notice of the reservation of that right to the Holders of the Bonds immediately following the making of the firm banking and financial arrangements; and (iii) directs that notice of the reservation be included in any redemption notices that it authorizes. 4- SECTION 13. Ordinance a Contract - Amendments - Outstanding Bonds. This Ordinance, together with the Pricing Certificate, shall constitute a contract with the Holders of from time to time, be binding on the City, and shall not be amended or repealed by the City so long as any Bond remains Outstanding except as permitted in this Section and in Section 31 hereof. The City may, without the consent of or notice to any Holders, from time to time and at any time, amend this Ordinance or any provision in the Pricing Certificate in any manner not detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the consent of Holders who own a majority of the aggregate of the principal amount of Bonds then Outstanding, amend, add to, or rescind any of the provisions of this Ordinance or any provision in the Pricing Certificate; provided that, without the consent of all Holders of Outstanding Bonds, no such amendment, addition, or rescission shall (1) extend the time or times of payment of the principal of and U) interest on the Bonds, reduce the principal amount thereof, the redemption price, or the rate of interest thereon, or in any other way modify the terms of payment of the principal of or interest co co on the applicable series of Bonds, (2) give any preference to any Bond over any other Bond, or (3) reduce the aggregate principal amount of Bonds required to be held by Holders for consent to any such amendment, addition, or rescission. The term "Outstanding" when used in this Ordinance with respect to Bonds means, as of the date of determination, all Bonds theretofore issued and delivered under this Ordinance, except: (1) those Bonds cancelled by the Paying Agent/Registrar or delivered to the Paying Agent/Registrar for cancellation; CM LL (2) those Bonds deemed to be duly paid by the City in accordance with the provisions of Section 12 hereof; and M (3) those mutilated, destroyed, lost, or stolen Bonds which have been replaced with Bonds registered and delivered in lieu thereof as provided in Section 11 hereof. SECTION 14. Covenants to Maintain Tax-Exempt Status. (a) Definitions. When used in this Section, the following terms have the following meanings: "Closing Date" means the date on which the Bonds are first authenticated and delivered to the initial purchasers against payment therefor. 27005561.3/11600460 16 Packet Pg. 336 F.3.a "Code" means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. "Computation Date" has the meaning set forth in Section 1.148-1(b) of the 2 Regulations. co "Gross Proceeds" means any proceeds as defined in Section 1.148-1(b) of the Regulations, and any replacement proceeds as defined in Section 1.148- 1(c) of the Regulations, of the Bonds. "Investment' has the meaning set forth in Section 1.148-1(b) of the Regulations. "Nonpurpose Investment' means any investment property, as defined in Section 148(b) of the Code, in which Gross Proceeds of the Bonds are invested and which is not acquired to carry out the governmental purposes of the Bonds. "Rebate Amount' has the meaning set forth in Section 1.148-1(b) of the Regulations. "Regulations" means any proposed, temporary, or final Income Tax Regulations issued pursuant to Sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue Code of 1954, which are applicable to the Bonds. Any reference to any specific Regulation shall also mean, as U) appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced. co co "Yield' of(1) any Investment has the meaning set forth in Section 1.148-5 of the Regulations and (2) the Bonds has the meaning set forth in Section 1.148- 4 of the Regulations. (b) Not to Cause Interest to Become Taxable. The City shall not use, permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition, as construction, or improvement of which is to be financed (or refinanced) directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any Bond to become includable in the gross income, as defined in Section 61 of the Code, of cm the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the City receives a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Bond, the City 0 shall comply with each of the specific covenants in this Section. (c) No Private Use or Private Payments. Except as permitted by Section 141 of the Code and the Regulations and rulings thereunder, the City shall at all times prior to the last 2 Stated Maturity of Bonds: (i) exclusively own, operate, and possess all property the acquisition, construction, or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Bonds (including property financed with Gross Proceeds of the Refunded Obligations), and not use or permit the use of such Gross Proceeds (including all contractual arrangements with terms different 27005561.3/11600460 17 Packet Pg. 337 F.3.a than those applicable to the general public) or any property acquired, constructed, or improved with such Gross Proceeds in any activity carried on by any person or entity (including the United States or any agency, department, and cm instrumentality thereof) other than a state or local government, unless such use 2 a is solely as a member of the general public; and co (ii) not directly or indirectly impose or accept any charge or other payment by any person or entity who is treated as using Gross Proceeds of the Bonds or any property the acquisition, construction, or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds (including property financed with Gross Proceeds of the Refunded Obligations), other than taxes of general application within the City or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. (d) No Private Loan. Except to the extent permitted by Section 141 of the Code and the Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Bonds to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be "loaned" to a person or entity if: (1) property acquired, constructed, or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes; (2) capacity in or service from such property is committed to such person or entity under a take-or-pay, output, or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any property acquired, U) constructed, or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. co co (e) Not to Invest at Higher Yield. Except to the extent permitted by Section 148 of the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the final Stated Maturity of the Bonds directly or indirectly invest Gross Proceeds in any Investment (or use Gross Proceeds to replace money so invested), if as a result of such investment the Yield from the Closing Date of all Investments acquired with Gross Proceeds (or with money replaced thereby), whether then held or previously disposed of, exceeds the Yield of the Bonds. (f) Not Federally Guaranteed. Except to the extent permitted by Section 149(b) of the Code and the Regulations and rulings thereunder, the City shall not take or omit to take any cm action which would cause the Bonds to be federally guaranteed within the meaning of Section 149(b) of the Code and the Regulations and rulings thereunder. (g) Information Report. The City shall timely file the information required by Section T 149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other form and in such place as the Secretary may prescribe. (h) Rebate of Arbitrage Profits. Except to the extent otherwise provided in Section 148(f) of the Code and the Regulations and rulings thereunder: (i) The City shall account for all Gross Proceeds (including all receipts, expenditures and investments thereof) on its books of account separately and apart from all other funds (and receipts, expenditures and investments thereof) and shall retain all records of accounting for at least six (6) years after the day on which the last outstanding Bond is discharged. However, 27005561.3/11600460 18 Packet Pg. 338 F.3.a to the extent permitted by law, the City may commingle Gross Proceeds of the Bonds with other money of the City, provided that the City separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired cm therewith. COa (ii) Not less frequently than each Computation Date, the City shall calculate the Rebate Amount in accordance with rules set forth in Section 148(f) of the Code and the Regulations and rulings thereunder. The City shall maintain such calculations with its official transcript of proceedings relating to the issuance of the Bonds until six years after the final Computation Date. (iii) As additional consideration for the purchase of the Bonds by the Purchasers and the loan of the money represented thereby and in order to induce such purchase by measures designed to insure the excludability of the interest thereon from the gross income of the Holders thereof for federal income tax purposes, the City shall pay to the United States out of the Interest and Sinking Fund or its general fund, as permitted by applicable Texas statute, regulation, or opinion of the Attorney General of the State of Texas, the amount that when added to the future value of previous rebate payments made for the Bonds equals (i) in the case of a Final Computation Date as defined in Section 1.148-3(e)(2) of the Regulations, one hundred percent (100%) of the Rebate Amount on such date; and (ii) in the case of any other Computation Date, ninety percent (90%) of the Rebate Amount on such date. In all cases, the rebate payments shall be made at the times, in the installments, to the place, and in the U) manner as is or may be required by Section 148(f) of the Code and the Regulations and rulings thereunder, and shall be accompanied by Form 8038-T CO CO or such other forms and information as is or may be required by Section 148(f) of the Code and the Regulations and rulings thereunder. (iv) The City shall exercise reasonable diligence to assure that no errors are made in the calculations and payments required by paragraphs (2) and (3), and if an error is made, to discover and promptly correct such error within a reasonable amount of time thereafter (and in all events within one hundred eighty (180) days after discovery of the error), including payment to the United States of any additional Rebate Amount owed to it, interest thereon, and any penalty imposed under Section 1.148-3(h) of the Regulations. cm (i) Not to Divert Arbitrage Profits. Except to the extent permitted by Section 148 of the Code and the Regulations and rulings thereunder, the City shall not, at any time prior to the earlier of the Stated Maturity or final payment of the Bonds, enter into any transaction that reduces the amount required to be paid to the United States pursuant to subsection (h) of this Section because such transaction results in a smaller profit or a larger loss than would have resulted if the transaction had been at arm's length and had the Yield of the Bonds not been relevant to either party. 2 Q) Elections. The City hereby directs and authorizes the Mayor, Mayor Pro Tem, the City Manager, Assistant City Manager, Director of Finance and City Secretary of the City, individually or jointly, to make elections permitted or required pursuant to the provisions of the Code or the Regulations, as one or more of such persons deems necessary or appropriate in connection with the Bonds, in the Certificate as to Tax Exemption, or similar or other appropriate certificate, form, or document. 27005561.3/11600460 19 Packet Pg. 339 F.3.a (k) Bonds Not Hedge Bonds. At the time the original obligations refunded by the Bonds were issued, the City reasonably expected to spend at least 85% of the spendable proceeds of such obligations within three years after such obligations were issued and (2) not cm more than 50% of the proceeds of the original obligations refunded by the Bonds were invested 2 L_ in Nonpurpose Investments having a substantially guaranteed Yield for a period of 4 years or 0 more. (1) Qualified Advance Refunding. The Bonds are issued to refund the Refunded Obligations and the Bonds will be issued more than 90 days before the redemption of the Refunded Obligations. The City represents as follows: 4- (i) The Bonds are the first advance refunding of the Refunded Obligations within the meaning of Section 149(d)(3) of the Code. (ii) The Refunded Obligations are being called for redemption, and will be redeemed not later than the earliest date on which such obligations may be redeemed and on which the City will realize present value debt service savings (determined without regard to administrative expenses) on the issue. (iii) The initial temporary period under Section 148(c) of the Code will end: (i) with respect to the proceeds of the Bonds not later than 30 days after the date of issue of such Bonds; and (ii) with respect to proceeds of the Refunded Obligations on the Closing Date if not ended prior thereto. U) (iv) On and after the date of issue of the Bonds, no proceeds of the Refunded Obligations will be invested in Nonpurpose Investments having a Yield co co in excess of the Yield on such Refunded Obligations. (v) The Bonds are being issued for the purposes stated in the preamble of this Ordinance. There is a present value savings associated with the refunding. In the issuance of the Bonds the City has neither: (i) overburdened the tax-exempt bond market by issuing more bonds, issuing bonds earlier or allowing bonds to remain outstanding longer than reasonably necessary to accomplish the governmental purposes for which the Bonds were issued; (ii) employed on "abusive arbitrage device" within the meaning of Section 1.148-10(a) of the Regulations; nor (iii) employed a "device" to obtain a material cm financial advantage based on arbitrage, within the meaning of Section 149(d)(4) of the Code, apart from savings attributable to lower interest rates and reduced debt service payments in early years. M SECTION 15. Sale of Bonds - Official Statement. The Bonds authorized by this Ordinance are to be sold by the City to the Purchasers in accordance with a bond purchase agreement in the event of a negotiated sale, letter agreement to purchase in the event of a private placement, or the successful bid form in the event of a competitive sale, as applicable (the "Purchase Contract"), the terms and provisions of which Purchase Contract are to be determined by the Pricing Officer in accordance with Section 3 hereof. The Pricing Officer is hereby authorized and directed to execute the Purchase Contract for and on behalf of the City, as the act and deed of this Council, and to make a determination as to whether the terms are in the City's best interests, which determination shall be final. 27005561.3/11600460 20 Packet Pg. 340 F.3.a With regard to such terms and provisions of the Purchase Contract, the Pricing Officer is hereby authorized to come to an agreement with the Purchasers on the following, among other matters: cm U) 2 1. The details of the purchase and sale of the Bonds; co 2. The details of any public offering of the Bonds by the Purchasers, if any; 3. The details of any Official Statement or similar disclosure document (and, if appropriate, any Preliminary Official Statement) relating to the Bonds and the City's Rule 15c2-12 compliance, if applicable; E 4. A security deposit for the Bonds, if any; 5. The representations and warranties of the City to the Purchasers; 6. The details of the delivery of, and payment for, the Bonds; 2M 7. The Purchasers' obligations under the Purchase Contract; 8. The certain conditions to the obligations of the City under the Purchase Contract; 9. Termination of the Purchase Contract; 10. Particular covenants of the City; 11. The survival of representations made in the Purchase Contract; 12. The payment of any expenses relating to the Purchase Contract; 13. Notices; and co 14. Any and all such other details that are found by the Pricing Officer to be co necessary and advisable for the purchase and sale of the Bonds. The Mayor or Mayor Pro Tem, City Manager, Assistant City Manager, Director of Finance and City Secretary of the City are further authorized and directed to deliver for and on behalf of the City copies of a Preliminary Official Statement and Official Statement prepared in connection with the offering of the Bonds by the Purchasers, in final form as may be required by the Purchasers, and such final Official Statement as delivered by said officials shall constitute the Official Statement authorized for distribution and use by the Purchasers. SECTION 16. Escrow Agreement. An "Escrow Agreement" or "Special Escrow cm Agreement" (either, the "Escrow Agreement") by and between the City and an authorized escrow agent (the "Escrow Agent"), if any such agreement is required in connection with the issuance of the Bonds, shall be attached to and approved in the Pricing Certificate. Such Escrow Agreement is hereby authorized to be finalized and executed by the Pricing Officer for U) and on behalf of the City and as the act and deed of this Council; and such Escrow Agreement as executed by said Pricing Officer shall be deemed approved by this Council and constitute the Escrow Agreement herein approved. With regard to the finalization of certain terms and provisions of any Escrow Agreement, a Pricing Officer is hereby authorized to come to an 2 agreement with the Escrow Agent on the following details, among other matters: 1. The identification of the Refunded Obligations; 2. The creation and funding of the Escrow Fund or Funds; and 3. The Escrow Agent's compensation, administration of the Escrow Fund or Funds, and the settlement of any paying agents' charges relating to the Refunded Obligations. 27005561.3/11600460 21 Packet Pg. 341 F.3.a Furthermore, appropriate officials of the City in cooperation with the Escrow Agent are hereby authorized and directed to make the necessary arrangements for the purchase of the escrowed securities referenced in the Escrow Agreement, if any, and the delivery thereof to the cm Escrow Agent on the day of delivery of the Bonds to the Purchasers for deposit to the credit of 2 a the "CITY OF NORTH RICHLAND HILLS, TEXAS, GENERAL OBLIGATION REFUNDING co BONDS, SERIES 2016 ESCROW FUND" (referred to herein as the "Escrow Fund"), or such other designation as specified in the Pricing Certificate; all as contemplated and provided in Chapter 1207, the Ordinance, the Pricing Certificate and the Escrow Agreement. On or immediately prior to the date of the delivery of the Bonds to the Purchasers, the E Pricing Officer, or other authorized City official listed in Section 33 hereof, shall also cause to be deposited (and is hereby authorized to cause to be deposited) with the Escrow Agent from moneys on deposit in the debt service fund(s) maintained for the payment of the Refunded Obligations an amount which, together with the proceeds of sale of the Bonds, and the investment earnings thereon, will be sufficient to pay in full the Refunded Obligations (or the amount of accrued interest due thereon) scheduled to mature and authorized to be redeemed on the earliest date established in the Pricing Certificate for the redemption of any of the Refunded Obligations (or the earliest date of payment, to be made from moneys in the Escrow Fund(s), as established in the Pricing Certificate, of the amount of accrued interest due thereon). SECTION 17. Refunded Obligations. (a) In order to provide for the refunding, discharge, and retirement of the Refunded Obligations as selected by the Pricing Officer, the Refunded Obligations, identified, described, and in the amounts set forth in the Pricing U) Certificate, are called for redemption on the first date such Refunded Obligations are subject to redemption or such other date specified by the Pricing Officer in the Pricing Certificate at the co co price of par plus accrued interest to the redemption date, and notice of such redemption shall be given in accordance with the applicable provisions of the ordinance adopted by this Council, which authorized the issuance of the Refunded Obligations. The Pricing Officer is hereby authorized and directed to issue or cause to be issued a Notice of Redemption for the Refunded Obligations in substantially the form set forth as an Exhibit to the Pricing Certificate, to the paying agent/registrar for Refunded Obligations, in accordance with the redemption provisions applicable to the Refunded Obligations. (b) The paying agent/registrar for Refunded Obligations is hereby directed to provide the appropriate notice of redemption as required by the ordinance authorizing the issuance of cm the Refunded Obligations and is hereby directed to make appropriate arrangements so that the Refunded Obligations may be redeemed on the redemption date specified in the Pricing Certificate. (c) The source of funds for payment of the principal of and interest on the Refunded Obligations on their respective maturity or redemption dates shall be from the funds deposited with the Escrow Agent, pursuant to the Escrow Agreement, if any, or with the paying agent/registrar for the Refunded Obligations pursuant the provisions of Chapter 1207, this 2 Ordinance and the Pricing Certificate finalized by the Pricing Officer. SECTION 18. Control and Custody of Bonds. The Mayor or Mayor Pro Tern of the City shall be and is hereby authorized to take and have charge of all necessary ordinances, resolutions, orders and records, including the definitive Bonds and the Initial Bonds, pending the investigation and approval of the Initial Bonds by the Attorney General of the State of Texas, 27005561.3/11600460 22 Packet Pg. 342 F.3.a and the registration of the Initial Bonds to the Comptroller of Public Accounts and the delivery thereof to the Purchasers. cm SECTION 19. Proceeds of Sale. Immediately following the delivery of the Bonds, the proceeds of sale (less those proceeds of sale designated to pay costs of issuance and any co accrued interest received from the Purchasers of the Bonds or additional proceeds being deposited to the Interest and Sinking Fund) shall be deposited with the Escrow Agent for application and disbursement in accordance with the provisions of the Escrow Agreement or deposited with the paying agent/registrar for the Refunded Obligations for the payment and redemption of the Refunded Obligations. The proceeds of sale of the Bonds not so deposited with the Escrow Agent (or the paying agent/registrar for the Refunded Obligations) for the refunding of the Refunded Obligations shall be disbursed for payment of costs of issuance, or deposited in the Interest and Sinking Fund for the Bonds, all in accordance with written instructions from the City or its financial advisor. Such proceeds of sale may be invested in authorized investments and any investment earnings realized may be (with respect to the accrued interest received from the Purchasers) deposited in the Interest and Sinking Fund as shall be determined by this Council. Additionally, the Pricing Officer shall determine the amount of any City contribution to the refunding from moneys on deposit in the interest and sinking fund maintained for the payment of the Refunded Obligations. SECTION 20. Notices to Holders - Waiver. Wherever this Ordinance or the Pricing Certificate provides for notice to Holders of any event, such notice shall be sufficiently given U) (unless otherwise herein expressly provided) if in writing and sent by United States Mail, first class postage prepaid, to the address of each Holder appearing in the Security Register at the co co close of business on the business day next preceding the mailing of such notice. In any case in which notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Bonds. Where this Ordinance or the Pricing Certificate provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice. Waivers of notice by to Holders shall be filed with the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. cm SECTION 21. Cancellation. All Bonds surrendered for payment, redemption, transfer, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly cancelled by it and, if surrendered to the City, shall be delivered to the Paying Agent/Registrar and, if not already cancelled, shall be promptly cancelled by the Paying Agent/Registrar. The City may at any time deliver to the Paying Agent/Registrar for cancellation any Bonds previously certified or registered and delivered which the City may have acquired in any manner whatsoever, and all Bonds so delivered shall be promptly cancelled by the Paying 2 Agent/Registrar. All cancelled Bonds held by the Paying Agent/Registrar shall be returned to the City. 0 SECTION 22. Bond Counsel Opinion. The obligation of the Purchasers to accept delivery of the Bonds is subject to being furnished a final opinion of Norton Rose Fulbright US LLP, Attorneys, Dallas, Texas, approving the Bonds as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for the Bonds. A true and correct 27005561.3/11600460 23 Packet Pg. 343 F.3.a reproduction of said opinion is hereby authorized to be printed on the Bonds, or an executed to counterpart thereof is hereby authorized to be either printed on definitive printed obligations or deposited with DTC along with the global certificates for the implementation and use of the CM Book-Entry-Only System used in the settlement and transfer of the Bonds. 2 a SECTION 23. CUSIP Numbers. CUSIP numbers may be printed or typed on the co p Yp definitive Bonds. It is expressly provided, however, that the presence or absence of CUSIP numbers on the definitive Bonds shall be of no significance or effect as regards the legality thereof, and neither the City nor attorneys approving the Bonds as to legality are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Bonds. SECTION 24. Benefits of Ordinance. Nothing in this Ordinance or the Pricing Certificate, expressed or implied, is intended or shall be construed to confer upon any person other than the City, the Paying Agent/Registrar and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Ordinance or any provision hereof or the Pricing Certificate, this Ordinance and all of its provisions and the Pricing Certificate being intended to be and being for the sole and exclusive benefit of the City, the Paying Agent/Registrar, and the Holders. SECTION 25. Inconsistent Provisions. All ordinances or resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance or the Pricing Certificate are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters contained herein. U) SECTION 26. Governing Law. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. co co SECTION 27. Effect of Headings. The Section headings herein are for convenience of reference only and shall not affect the construction hereof. SECTION 28. Construction of Terms. If appropriate in the context of this Ordinance, words of the singular number shall be considered to include the plural, words of the plural number shall be considered to include the singular, and words of the masculine, feminine, or neuter gender shall be considered to include the other genders. SECTION 29. Severability. If any provision of this Ordinance or the Pricing Certificate CM or the application thereof to any circumstance shall be held to be invalid, the remainder of this Ordinance and the Pricing Certificate and the application thereof to other circumstances shall nevertheless be valid, and this Council hereby declares that this Ordinance would have been enacted without such invalid provision. U) SECTION 30. Incorporation of Findings and Determinations. The findings and determinations of this Council contained in the preamble hereof are hereby incorporated by reference and made a part of this Ordinance for all purposes as if the same were restated in full 2 in this Section. SECTION 31. Continuing Disclosure Undertaking. This Section shall apply unless the Pricing Officer determines in the Pricing Certificate that an undertaking is not required pursuant to the Rule (defined below). 27005561.3/11600460 24 Packet Pg. 344 F.3.a (a) Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: cm WSRB" means the Municipal Securities Rulemaking Board. 2 a "Rule" means SEC Rule 15c2-12, as amended from time to time or co officially interpreted by the SEC. 0 "SEC" means the United States Securities and Exchange Commission. E (b) Annual Reports. The City will provide certain updated financial information and operating data to the MSRB on an annual basis in an electronic format that is prescribed by the MSRB and available via EMMA. The information to be updated includes all quantitative financial information and operating data with respect to the City of the general type included in Tables numbered 1 through 5 and 7 through 14 and in APPENDIX B of the Official Statement approved by the Pricing Certificate. The City will update and provide the information in Tables 1 through 5 and 7 through 14 within six months after the end of each fiscal year ending in and after 2016. The City will additionally provide audited financial statements when and if available, and in any event, within 12 months after the end of each fiscal year ending in or after 2016. If the audit of such financial statements is not complete within 12 months after any such fiscal year end, then the City will file unaudited financial statements within such 12 month period and audited financial statements for the applicable fiscal year, when and if the audit report on such statements become available. U) If the City changes its fiscal year, it will notify the MSRB of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required co co to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document available to the public on the MSRB's Internet Web site or filed with the SEC. S (c) Notice of Certain Events. The City shall provide notice of any of the following events with respect to the Bonds to the MSRB in a timely manner and not more than 10 business days after occurrence of the event: cm 1. Principal and interest payment delinquencies; 2. Non-payment related defaults, if material; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; U) 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions, the issuance by the Internal Revenue Service of 2 proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB), or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; 7. Modifications to rights of holders of the Bonds, if material; 8. Bond calls, if material, and tender offers; 9. Defeasances; 27005561.3/11600460 25 Packet Pg. 345 F.3.a 10. Release, substitution, or sale of property securing repayment of the Bonds, if material; 11. Rating changes; CM 12. Bankruptcy, insolvency, receivership, or similar event of the City, which 2 a shall occur as described below; CO 13. The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of its assets, other than in the ordinary course of business, the entry into of a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and 14. Appointment of a successor or additional trustee or the change of name of a trustee, if material. For these purposes, any event described in the immediately preceding subsection (c)12 is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. The City shall notify the MSRB, in a timely manner, of any failure by the City to provide CO Be CO financial information or operating data in accordance with subsection (b) of this Section by the time required by such Section. (d) Filings with the MSRB. All financial information, operating data, financial statements, notices and other documents provided to the MSRB in accordance with this Section shall be provided in an electronic format prescribed by the MSRB and shall be accompanied by identifying information as prescribed by the MSRB. (e) Limitations, Disclaimers and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section while, but only while, the City CM remains an "obligated person" with respect to the Bonds within the meaning of the Rule, except that the City in any event will give the notice required by subsection (c) hereof of any Bond calls and defeasance that cause the City to be no longer such an "obligated person." M The provisions of this Section are for the sole benefit of the Holders and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and 2 notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. 27005561.3/11600460 26 Packet Pg. 346 F.3.a UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, C14 U) WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, co IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. 0 ca No default by the City in observing or performing its obligations under this Section shall constitute a breach of or default under this Ordinance for purposes of any other provision of this Ordinance. 4- Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. Notwithstanding anything to the contrary in this Ordinance, the provisions of this Section may be amended by the City from time to time to adapt to changed circumstances resulting from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (2) either (a) the Holders of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the Outstanding U) Bonds consent to such amendment or (b) a person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair co co the interests of the Holders and beneficial owners of the Bonds. The provisions of this Section may also be amended from time to time or repealed by the City if the SEC amends or repeals the applicable provisions of the Rule or a court of final jurisdiction determines that such provisions are invalid, but only if and to the extent that reservation of the City's right to do so would not prevent an underwriter of the initial public offering of the Bonds from lawfully purchasing or selling Bonds in such offering. If the City so amends the provisions of this Section, it shall include with any amended financial information or operating data next provided pursuant to subsection (b) of this Section an explanation, in narrative form, of the reasons for to the amendment and of the impact of any change in the type of financial information or operating data so provided. cm SECTION 32. Municipal Bond Insurance. The Bonds may be sold with the principal of and interest thereon being insured by a municipal bond insurance provider authorized to transact business in the State of Texas. The Pricing Officer is hereby authorized to make the selection of municipal bond insurance (if any) for the Bonds and make the determination of the provisions of any commitment therefor. SECTION 33. Further Procedures. Any one or more of the Mayor, Mayor Pro Tem, City 2 Manager, Assistant City Manager, Director of Finance, City Secretary and Assistant City Secretary are hereby expressly authorized, empowered and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowledge and deliver in the name and on behalf of the City all agreements, instruments, certificates or other documents, whether mentioned herein or not, as may be necessary or desirable in order to carry out the terms and provisions of this Ordinance and the issuance of the Bonds. In addition, prior to the initial delivery of the Bonds, the Mayor, Mayor Pro Tem, City Manager, Assistant City Manager, 27005561.3/11600460 27 Packet Pg. 347 F.3.a Director of Finance, or Bond Counsel to the City are each hereby authorized and directed to to approve any changes or corrections to this Ordinance or to any of the documents authorized and approved by this Ordinance, including the Pricing Certificate: (i) in order to cure any CM ambiguity, formal defect or omission in this Ordinance or such other document; or (ii) as 2 a requested by the Attorney General of the State of Texas or his representative to obtain the co approval of the Bonds by the Attorney General and if such officer or counsel determines that such changes are consistent with the intent and purpose of this Ordinance, which determination shall be final. In the event that any officer of the City whose signature shall appear on any document shall cease to be such officer before the delivery of such document, such signature nevertheless shall be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. SECTION 34. Public Meeting. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by Texas Government Code, Chapter 551, as amended. SECTION 35. Effective Date. In accordance with the provisions of Texas Government Code, Section 1201.028, as amended, this Ordinance shall be in force and effect from and after its passage on the date shown below and it is so ordained. U) [The remainder of this page intentionally left blank.] co co S CM LL M 0 27005561.3/11600460 28 Packet Pg. 348 F.3.a PASSED AND ADOPTED, this February 22, 2016. CITY OF NORTH RICHLAND HILLS, TEXAS a co 0 Mayor ATTEST: 4- 2m City Secretary (City Seal) U) co co APPROVED AS TO LEGALITY: S City Attorney APPROVED AS TO CONTENT: cm Director of Finance 0 27005561.3/11600460 S-1 Packet Pg. 349 F.3.a EXHIBIT A CD PAYING AGENT/REGISTRAR AGREEMENT U) a 2 Co 0 Co 4- 2m m U) Co Co to CD 0 27005561.3/11600460 A-1 Packet Pg. 350 H.1 "ArRok., NORTH KIC;HLAND HILLS CITY COUNCIL MEMORANDUM From: The Office of the City Manager Date: February 22, 2016 Subject: Announcements. Presenter: Mary Peters, Public Information Officer Summary: At each Council meeting a member of the governing body announces upcoming events in the City and recognizes an employee that exemplifies the City's core values. General Description: Announcements - Volunteers from AARP are assisting residents with their tax returns each Monday and Thursday through April 18th at the NRH Public Library. This free service is available to taxpayers of all ages. To make an appointment or get more information, please call the Library at 817-427-6814. Registration is underway for for adult spring softball, kickball, basketball and volleyball leagues. Get complete details online or at the NRH Centre. New York Times Bestselling Author Joanne Fluke will be returning to the North Richlalnd Hills Library on February 24th for the official launch of her latest book Wedding Cake Murder. She will speak beginning at 1:00 p.m., followed by a book signing. Visit the library's website or call 817-427-6800 for more information. Kudos Korner - Every Council Meeting, we spotlight our employees for the great things they do. Tonight we recognize: The City Council, City Management and Parks Department —A resident sent an email stating how thrilled she was with the city's trail system. Her family had recently moved back to NRH and discovered the extensive trails. She wanted to thank the city for investing in the bike trails and the parks staff for working so diligently to keep them beautifully maintained. Recommendation: N/A Packet Pg. 351