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CITY OF DENISON

CITY COUNCIL MEETING

AGENDA

Monday, March 16, 2020

After determining that a quorum is present, the City Council of the City of Denison, Texas will

convene in a Regular Meeting on Monday, March 16, 2020 at 6:00 PM in the Council Chambers

at City Hall, 300 W. Main Street, Denison, Texas at which the following items will be considered:

1. INVOCATION, PLEDGE OF ALLEGIANCE AND TEXAS PLEDGE

2. PUBLIC COMMENTS

Comments may be provided on any action item listed on the agenda by filling out a “Request

to Speak” card and returning it to the City Clerk prior to the meeting. Speakers will be called

to the podium by name, asked to provide their full name and address for the record, and given

three (3) minutes to speak. Comments related to Public Hearings will be heard when the

specific hearing starts.

3. CONSENT AGENDA

Each of these items is recommended by the Staff and approval thereof will be strictly on the

basis of the Staff recommendations or any prior Board or Council action as the case may be

from time to time. Approval of the Consent Agenda authorizes the City Manager to implement

each item in accordance with the Staff recommendations.

Listed below are bids, purchase orders, contracts, and other items to be approved under the

Consent Agenda. This listing is provided on the Consent Agenda to allow Council Members

to discuss or withdraw an item prior to approval of the Consent Agenda. If no items are pulled,

the Consent Agenda Items below will be approved with one motion. If items are pulled for

separate discussion, they may be considered as the first items following approval of the

Consent Agenda.

A. Receive a report, hold a discussion and take action on approving the Minutes from the

regular City Council meeting held on March 2, 2020.

B. Receive a report, hold a discussion, and take action on the reappointment of Spence

Redwine and Todd Catteau as members to the Community Development Steering/Housing

Rehabilitation Committee.

C. Receive a report, hold a discussion and take action on the creation and hiring of an

additional Code Compliance Officer.

D. Receive a report, hold a discussion and take action on an ordinance repealing and restating

ordinances relating to Municipal Court Fees, codified as Chapter 2, “Administration”,

Article VIII, “Municipal Court Funds and Fees” of the Denison Code of Ordinances.

4. PUBLIC HEARINGS

A. Receive a report, hold a discussion and take action on an Ordinance repealing and restating

Chapter 18, “Public Property”, Article III “Parks and Recreation Areas”, Division I,

“Generally”, Section 18-73, “Summer Day Camp and Other Non-School Day Programs

Standards of Care.”

5. ITEMS FOR INDIVIDUAL CONSIDERATION

A. Receive a report, hold a discussion and take action on an ordinance amending Chapter 13,

“Nuisances”, Article II and Articles IV-VII “Penalties” allowing for escalating penalties

for repeat convictions.

B. Receive a report, hold a discussion and take action authorizing the City Manager to enter

into a Memorandum of Understanding (MOU) between the City of Denison and Denison

Animal Welfare Group (DAWG) for the design, construction and operation of an animal

shelter to be constructed in Denison.

C. Receive a report, hold a discussion and take action on the 2018-2019 Comprehensive

Annual Financial Report (CAFR) presented by BrooksWatson & Co.

D. Receive a report, hold a discussion, and take action on an amendment to the FY2020 budget

for Denison Development Alliance.

E. Receive a report and hold a discussion on the City of Denison's response to Coronavirus

(COVID-19) and take action if community mitigation measures are needed.

6. PROJECT UPDATES

A. Provide an update on the FY2021 budget and tax rate adoption schedule.

7. EXECUTIVE SESSION

Pursuant to Chapter 551, Texas Government Code, the Council reserves the right to convene

in Executive Session(s), from time to time as deemed necessary during this meeting to receive

legal advice from its attorney on any posted agenda item as permitted by law or to discuss the

following:

A. Consult with attorney on a matter in which the attorney's duty to the governmental body

under the Texas Disciplinary Rules of Professional Conduct conflicts with this chapter

and/or consult with attorney about pending or contemplated litigation or contemplated

settlement of the same. Section 551.071

B. Discuss the possible purchase, exchange, lease or sell of value of real property and

public discussion of such would not be in the best interests of the City's bargaining

position. Section 551.072

1. Discuss land within the downtown area for parking and development.

2. Discuss 104 E. Main Street.

C. Discuss negotiated gifts or donations to the City and public discussion at this stage would

have a detrimental effect on the City's bargaining position. Section 551.073.

D. Discuss the appointment, employment, evaluation, reassignment of duties, discipline,

or dismissal of or to hear a complaint against a public officer or employee. Section

551.074.

1. Discuss potential candidates for the Smith Foundation Advisory Board.

E. Discuss the commercial or financial information received from an existing business or

business prospect with which the City is negotiating for the location or retention of a

facility, or for incentives the City is willing to extend, or financial information submitted

by the same. Section 551.087

F. Discuss the deployment or specific occasions for implementation of security personnel or

devices. Section 551.076

G. Deliberations regarding economic development negotiations pursuant to Section 551.087

Following the closed Executive Session, the Council will reconvene in open and public session

and take any such action as may be desirable or necessary as a result of the closed deliberations.

CERTIFICATION

I do hereby certify that a copy of this Notice of Meeting was posted on the front window of City

Hall readily accessible to the general public at all times and posted on the City of Denison website

on the 13th day of March 2020, before 6:00 PM.

______________________________

Christine Wallentine, City Clerk

In compliance with the Americans With Disabilities Act, the City of Denison will provide for reasonable

accommodations for persons attending City Council meeting. To better serve you, requests should be received 48

hours prior to the meetings. Please contact the City Clerk’s Office at 903-465-2720, Ext: 2437.

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MINUTES OF

CITY COUNCIL MEETING

CITY OF DENISON

MONDAY, MARCH 2, 2020

CALL TO ORDER

Announce the presence of a quorum.

Mayor Gott called the meeting to order at 6:01 p.m. City Council Members present were Brian

Hander, Teresa Adams, Obie Greenleaf, J.C. Doty, Robert Crawley and Kristofor Spiegel. Staff

present were City Manager, Judson Rex, City Attorney, Julie Fort, City Clerk, Christine Wallentine

and Deputy City Clerk, Fanchon Stearns. Department Directors and members of the media were

also present.

1. INVOCATION, PLEDGE OF ALLEGIANCE AND TEXAS PLEDGE

Dave Pettigrew, Pastor of Denison Church of the Nazarene, gave the Invocation, which was

followed by the Pledge of Allegiance.

2. PRESENTATIONS AND PROCLAMATION

A. Texas Municipal Library Director's Achievement of Excellence Award Presentation.

Council Action

Judson Rex, City Manager, presented the Texas Municipal Library Director’s Achievement

of Excellence Award to Library Director, Greg Mitchell, and Library Staff in attendance.

Mr. Rex reported that there are 571 public libraries in the state of Texas. The Texas

Municipal Library Directors’ Association selects 53 to be recognized for excellence. So,

less than 10% get recognized and receive this award. The Denison Library has received this

award the past 6 years. Mr. Rex then called the Library Staff present who were in attendance

and presented the Achievement of Excellence Award to them. Mr. Rex went on to say that

the City is proud of the library and believe that they are exceptional. Greg Mitchell, Library

Director, provided a few comments and thanked the City Council for this recognition of the

entire library.

3. PUBLIC COMMENTS

Mayor Gott called for any public comments at this time and reminded those wanting to comment

of the guidelines established by the City Council. Mayor Gott then asked City Clerk, Chris

Wallentine, if any Request to Speak Cards were received with regard to any of the agenda items.

Ms. Wallentine confirmed there were no Request to Speak Cards returned to her prior to

reaching the public comments section. Therefore, no public comments were made.

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4. CONSENT AGENDA

A. Receive a report, hold a discussion and take action on the minutes from the regular City

Council Meeting held on February 18, 2020.

B. Receive a report, hold a discussion and take action on a resolution authorizing continued

participation with the Steering Committee of Cities served by Oncor and authorizing the

payment of seven cents per capita to the Steering Committee to fund regulatory and legal

proceedings and activities related to Oncor Electric Delivery Company, LLC.

C. Receive a report, hold a discussion and take action on the reappointment of Mark Fisher, as

a member for the Business/Professional position, and the appointment of Scott Moody, as a

new member for the General Contractor position, and Linwood Smith, as a new member for

the Member at Large position to the Building Appeals Board.

D. Receive a report, hold a discussion and take action on the reappointment of Stephanie

Phillips, Bruce Edmaiston, Chad Cruce and Sharon Braziel, as members, and the

appointment of Novardo Johnson, as a new member, to the Animal Advisory Committee.

E. Receive a report, hold a discussion and take action on an ordinance amending Chapter 4

“Animals”, Section 4-22, “Animal Services Advisory Committee” from the Denison Code

of Ordinances.

F. Receive a report, hold a discussion and take action on the appointment of Julia Craze as a

new member to the Denison Public Library Advisory Board.

Council Action

On motion by Council Member Hander, seconded by Mayor Pro Tem Adams, the City

Council unanimously approved Resolution No. 4002, ”A RESOLUTION AUTHORIZING

CONTINUED PARTICIPATION WITH THE STEERING COMMITTEE OF CITIES

SERVED BY ONCOR; AND AUTHORIZING THE PAYMENT OF SEVEN CENTS PER

CAPITA TO THE STEERING COMMITTEE TO FUND REGULATORY AND LEGAL

PROCEEDINGS AND ACTIVITIES RELATED TO ONCOR ELECTRIC DELIVERY

COMPANY, LLC”; Ordinance No. 5047, “AN ORDINANCE OF THE CITY OF

DENISON, TEXAS, AMENDING CHAPTER 4, “ANIMALS”, BY AMENDING

SECTION 4-22 “ANIMAL SERVICES ADVISORY COMMITTEE” OF THE CODE OF

ORDINANCES OF THE CITY; PROVIDING REPEALING, SEVERABILITY, AND

SAVINGS CLAUSES; PROVIDING FOR AN EFFECTIVE DATE”; and the rest of the

Consent Agenda as presented.

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5. PUBLIC HEARINGS

A. Receive a report, hold a discussion, conduct a public hearing, and take action on an

Ordinance for a Conditional Use Permit for a storage facility, Five Star Storage, located at

3621 Pottsboro Rd, Denison, TX 75020. (Case No. 2020-002CUP)

Council Action

Bill Medina, Planner, stated that the applicant was requesting a conditional use permit to

expand the existing Five Star Storage facility located at 3621 Pottsboro Road, Denison,

Texas. The current Commercial use will not be changed in any way. The applicant is

requesting to add on a 16,000 square foot open air storage facility for vehicles such as RVs

or other trucks, things of that nature. They already have something similar on site. Staff

notified all property owners within 200 feet. Mr. Medina then showed an aerial map, a

zoning map and the site plan, which was approved by the Planning and Zoning Commission

at their meeting on February 25, 2020. Staff recommends approval.

Mayor Gott then asked if there was anyone present who wished to speak to this agenda item,

to which there were none. With that, the Mayor closed the public hearing.

There was no discussion or questions from Council.

On motion by Mayor Pro Tem Adams, seconded by Council Member Greenleaf, the City

Council unanimously approved Ordinance No. 5048, “AN ORDINANCE OF THE CITY

OF DENISON, TEXAS, PROVIDING FOR SPECIFIED CHANGES IN THE OFFICIAL

ZONING MAP OF THE CITY OF DENISON, TEXAS; PROVIDING FOR A

CONDITIONAL USE PERMIT FOR WAREHOUSE (MINI)/ SELF-STORAGE IN THE

COMMERCIAL DISTRICT AND LOCATED IN THE HIGHWAY ORIENTED AND

CORRIDOR DISTRICT ON THE PROPERTY LEGALLY DESCRIBED AS LOT 1,

BLOCK 1, CROSSROADS RETAIL CENTER ADDITION, CITY OF DENISON,

TEXAS AS PER PLAT OF RECORD IN VOLUME 17, PAGE 69, DEED RECORDS OF

GRAYSON COUNTY, TEXAS, AND COMMONLY KNOWN AS 3621 W.

POTTSBORO ROAD, CITY OF DENISON, GRAYSON COUNTY, TEXAS;

PROVIDING A PENALTY CLAUSE; PROVIDING REPEALER, SEVERABILITY

AND SAVINGS CLAUSES; PROVIDING FOR PUBLICATION AND AN EFFECTIVE

DATE.”

B. Receive a report, hold a discussion, conduct a public hearing, and take action on an

Ordinance for a Conditional Use Permit for the allowance for a cabinet manufacturer, for

Texoma Woodworks, LLC, located at 1611 W Morton, Denison Texas 75020. (Case No.

2019-122CUP)

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Council Action

Bill Medina, Planner, stated that the applicant was seeking a conditional use permit in order

to operate a cabinet manufacturing and show room facility. The property is currently zoned

Commercial. This is located in the old Cole Lumber facility at 1611 W. Morton. Mr.

Medina then showed an aerial view of the site as well as the zoning map. Mr. Medina also

provided a slide of the site plan. Staff has notified all property owners within 200 feet. The

Planning and Zoning Commission recommended approval at their February 25, 2020

meeting. Staff also recommends approval.

Mayor Gott then asked if there was anyone present who wished to speak to this agenda item.

Ms. Perkins came forward and provided the following information for the record:

Name: Crystal Perkins

Address: 631 W. Munson

Denison, TX

Ms. Perkins stated that she and her husband owned Texoma Woodworks, LLC. Ms. Perkins

stated that they do not own the building but are in a lease agreement with the property owner

for use of the building. Ms. Perkins stated that they had made a number of improvements

on the building. Ms. Perkins thanked the Council for the opportunity to speak as this project

is very, very important to her family. They have put a lot of blood, sweat and tears into this

project to fulfill the vision for their family and for Denison. Ms. Perkins stated they have a

lot of communication with builders and contractors in the area that extend all the way from

Dallas into Oklahoma and believe this is a great thing for our city. Ms. Perkins went on to

say that they have a very unique idea for this building. The front half of the building will

be utilized as a retail space with existing cabinets that consumers can come in and purchase

or just get ideas and brainstorm. They will have a design center here as well so customers

can take those existing cabinets and expand upon them with the help of their design team to

help design what is best for them. Ms. Perkins said that they want people to work for them.

They have a vision for adding a lot of employees right now. She and her husband have

been residents in Denison for over 30 years and really believe in what they are doing.

Mayor Gott asked if they were going to have ready builds as well as custom cabinets? Ms.

Perkins responded that this was correct. Ms. Perkins stated that they have designed the

building in a way that there is a window into their manufacturing area so customers can

actually see the cabinets being built. Mayor Gott stated that the Council was appreciative

of all the improvements they have made to this building, which has had an impact that can’t

be measured.

Council Member Hander also thanked Ms. Perkins and said he didn’t think the building had

ever looked that good. Council Member Spiegel also added that this is a huge success story

for Code Enforcement.

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Mayor Gott then asked if there was anyone else present who wished to speak to this Agenda

item, to which there were none. With that, the Mayor closed the public hearing.


On motion by Council Member Spiegel, seconded by Council Member Greenleaf, the City


OF DENISON, TEXAS, PROVIDING FOR SPECIFIED CHANGES IN THE OFFICIAL

ZONING MAP OF THE CITY OF DENISON, TEXAS; PROVIDING FOR A

CONDITIONAL USE PERMIT FOR A CABINET OR UPHOLSTERY SHOP

(MANUFACTURING), IN THE COMMERCIAL DISTRICT AND LOCATED IN THE

MORTON STREET OVERLY DISTRICT ON THE PROPERTY LEGALLY

DESCRIBED AS LOTS 11 THROUGH 16, BLOCK 7, WEST END ADDITION TO THE

CITY OF DENISON, TEXAS AS PER PLAT OF RECORD IN VOLUME 99, PAGE 89,

DEED RECORDS, GRAYSON COUNTY, TEXAS, AND COMMONLY KNOWN AS

1611 WEST MORTON STREET, CITY OF DENISON, GRAYSON COUNTY, TEXAS;

PROVIDING A PENALTY CLAUSE; PROVIDING REPEALING, SEVERABILITY

AND SAVINGS CLAUSES; PROVIDING FOR PUBLICATION AND AN EFFECTIVE

DATE.”

6. ITEMS FOR INDIVIDUAL CONSIDERATION

A. Receive a report, hold a discussion and take action on an ordinance declaring the unopposed

candidates for election to the office of Council Member in the May 2, 2020 General Election

for Single Member District 3, Place 3, and At Large Place 5, and providing that the May 2,

2020 General Election shall not be held.

Council Action

Chris Wallentine, City Clerk, reported that on December 16, 2019, the City Clerk caused to

be posted on the front windows of City Hall at 300 W. Main Street, and published on the

City’s website, the required Notice of Deadline to File Applications for Place on the Ballot.

The filing dates and times for filing the Application for Place on the Ballot were Monday

through Friday, 8:00 a.m. to 5:00 p.m., January 15, 2020 through February 14, 2020, and the

last day for a write-in candidate to declare candidacy in the General Election was 5:00 p.m.

on February 18, 2020. On February 3, 2020, the City Council ordered and called a General

Election to be held on Saturday, May 2, 2020 for the purpose of electing Council Members

for Single Member District 3, Place 3, and At Large Place 5. J.C. Doty was the only applicant

for Single Member District 3, Place 3, and Kristofor Spiegel was the only applicant for At

Large Place 5 to file an Application for Place on the Ballot by the February 14, 2020 deadline.

On February 19, 2020, the City Clerk delivered certification of unopposed candidates to the

City Council as required by Texas Election Code Section 2.052. Pursuant to Section 2.053(b)

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of the Texas Election Code, upon receiving the certification, the City Council may, by

ordinance, declare the unopposed candidates elected to office, and dispense with the

necessity of holding the election. Staff recommends approval of the ordinance.

On motion by Council Member Greenleaf, seconded by Council Member Hander, the City


COUNCIL OF THE CITY OF DENISON, TEXAS, DECLARING THE UNOPPOSED

CANDIDATES FOR ELECTION TO THE OFFICE OF COUNCIL MEMBER IN THE

MAY 2, 2020 GENERAL ELECTION ELECTED TO OFFICE; PROVIDING THAT

SUCH CANDIDATES SHALL BE ISSUED A CERTIFICATE OF ELECTION IN THE

SAME MANNER AND AT THE SAME TIME AS A CANDIDATE ELECTED AT THE

ELECTION, AND THAT SUCH CANDIDATES MUST QUALIFY FOR OFFICE IN THE

SAME MANNER AS A CANDIDATE ELECTED AT THE ELECTION; PROVIDING

THAT THE MAY 2, 2020 GENERAL ELECTION SHALL NOT BE HELD; FINDING

AND DETERMINING THE MEETING AT WHICH THIS ORDINANCE IS PASSED TO

BE OPEN TO THE PUBLIC AS REQUIRED BY LAW; AND PROVIDING A

SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; AND PROVIDING AN

EFFECTIVE DATE.”

B. Receive a report, hold a discussion and take action on a resolution implementing changes to

the Sidewalk Repair Program.

Council Action

Carrie Jones, Assistant Public Works Director, reported that in December of 2019, staff met

with the Street Subcommittee and discussed the possibility of making some proposed

changes to the Sidewalk Repair Program. The current program has been in place longer than

FY2018, but we started setting aside money in 2018 specifically for the sidewalk repair

program out of the streets maintenance fund. This program is open to all homeowners who

have a current sidewalk that is in need of repair or replacement. The City will split this cost

50/50. We’ve been setting aside $67,000 per year and over the last 2 ½ to 3 years we’ve

only spent about $25,000 out of the $67,000 allocated annually for the 50/50 homeowner

program. We have spent money on other sidewalks where public improvements were

necessary. So, it’s not that we haven’t spent money on sidewalks, but rather we haven’t

gotten the participation that we anticipated for the 50/50 homeowner program. Staff began

to look at ways we could potentially open this up to other business owners or try to make

sure this money is being used much more efficiently then what we are currently utilizing it.

Therefore, we’ve proposed some changes that would go into effect September 1, 2020, for

FY2021 that would also open this 50/50 program up to business owners. Homeowners will

still have the opportunity of a 50/50 match through the program, but now business owners

will have this available to them as well and will be able to apply for the program for sidewalks

in front of their business. Staff also suggested that we have defined application periods.

Under our current program, a homeowner can apply and it could be six months before we

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are able to pour concrete for them. We have to have so much work for a contractor to come

out and do the work and typically we have to wait until we have so many applications in

place. So, we can’t really give a defined timeline on when that concrete is going to be poured.

By breaking the year up into two defined application periods, with the first one being

September to February, we would be able to tell homeowners or business owners that if they

applied within those months, we would be able to pour concrete in either March or April,

depending on the weather for that year. If they applied anywhere from March to August, we

would then pour in September. This would give the homeowners or business owners more

definition as to timing of any sidewalk repairs. This would also staff to have better

contractors that have the required insurance that we currently hold for the City. It was also

discussed about possibly breaking the City up into 4 zones. Zone 1 would be North of Main

Street and East of Highway 91. Zone 2 is South of Main Street and East of Tone/College.

Zone 3 is South of Hull/Crawford and West of Tone/College. Zone 4 is North of

Hull/Crawford and West of Highway 91. This way, any money that is not utilized for

homeowners or business owners, we can focus that money in those zones based on the year

and what designated zone that is to do public improvements. For example, when we met

with the Street Subcommittee in December and discussed the zones, focusing on Zone 1 for

FY2021 and focusing on Woodard between the 200 and 600 blocks. There are a lot of trip

hazards, there are no ADA ramps, etc. This helps connect to downtown too. So, these are

the types of improvements we would be looking for. Each year staff would bring that list of

public improvements to the Street Subcommittee for approval, so that we have an approved

plan each year. If we end up with leftover money, we know how many ADA ramps we need

to install and how many trip hazards we’d be able to fix. Also, with these zones, homeowners

and business owners do not have to be in that zone to apply for that year. They can be at any

location in the City. One other item that came out of the Street Subcommittee meeting was

a marketing plan for this program. We have not done the best job at marketing our current

program. In conjunction with the Community Engagement Office, we’ve come up with a

marketing plan that would begin after this meeting, if everything is approved, to start

advertising our current program to homeowners since this will be something continued into

the new year, and then in July when the quarterly newsletter comes out, we will roll out the

business program as well. We also plan to reach out to news stations to do news interviews

and also put brochures out in local businesses such as DDA, the Library, the Chamber of

Commerce, etc. These are the proposed changes to the Sidewalk Program which makes it a

little more robust then what we have now.

Council Member Hander asked if we know what the cost is for a standard sidewalk, like the

lots downtown that are approximately 50 feet wide? Ms. Jones responded that it typically

depends on the length of the property, but usually one property is about $2500, but will

depend on several factors. Council Member Hander asked if applicants could request to

replace a smaller section? Ms. Jones confirmed that they could. For instance, if there is a

small trip hazard, and the rest of the sidewalk is fine, we will just replace that one section.

Council Member Doty asked who is responsible for deciding whether or not a sidewalk needs

to be replaced or repaired? Ms. Jones responded that the Streets Department would be

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responsible for making this decision. We have an application process where we go out and

evaluate this. We have a staff member who determines this and decides if the trip hazard is

large enough to recommend replacement. Ms. Jones went on to say that at this point they

haven’t denied anyone because the sidewalks were severe enough that they needed to be

replaced. Council Member Spiegel asked if these are 36 inch or 48-inch sidewalks. Ms.

Jones stated that a lot of the residential sidewalks are 36 inches. Council Member Hander

added that he was excited about this program and for people to apply. Mayor Gott stated

that by extending this program to businesses is going to make such a difference because in

our Historic Overlay there are so many businesses that have sidewalks.

There was no further discussion or questions from Council.

On motion by Council Member Hander, seconded by Council Member Spiegel, the City

Council Unanimously approved Resolution No. 4003, “A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF DENISON, TEXAS PROVIDING A PROGRAM TO

HOMEOWNERS AND BUSINESS OWNERS FOR SIDEWALK REPLACEMENT

AND/OR REPAIR; PROVIDING FOR SEVERABILITY, SAVINGS AND REPEALING

CLAUSES; PROVIDING AN EFFECTIVE DATE; AND FINDING AND

DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS

PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW.”

C. Receive a report, hold a discussion and take action on an ordinance amending Ordinance No.

5008 by Amending Chapter 13 "Nuisances", Article VII, "Premises Maintenance" by adding

Part D "Rental Registration Program."

Council Action

Robert Lay, Code Compliance Manager, went over a little bit of the background on how we

got here. In 2019, we proposed a rental inspection and registration program. The goal has

always been to take steps to ensure quality housing in support of the City’s vision. The

objective was to create a program that allows the City to inspect rental property, encourage

compliance with basic health and safety for rental property. After a public meeting last June,

a stakeholder committee was formed that met multiple times. City staff leaned a lot from the

stakeholder committee. Some of the things to come out of this was that we have a complex

rental market where problems lie with both tenants and landlords, and these issues are split.

We saw a need for further education as to what people are responsible for. Ultimately, our

best course of action was to foster a great relationship with property owners in our efforts,

and their effort, to maintain quality housing. We came up with a total voluntary registration

program. One is where they can just register only, and the other is where they can register

their properties and have them voluntarily inspected. We also came up with a good set of

benefits to help the property owners maintain that level of housing by allowing them to save

some money on the front end and put that money back into their rental homes Our next steps,

if this is approved this evening, staff will be coming forward to request the addition of one

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Code Compliance Officer to help with this program and to continue moving the Code

Compliance initiatives forward. Another thing we got from the stakeholder committee is

what we are doing to hold everyone accountable for what is going on. So, we will be beefing

up our penalties for violations of all of Chapter 13, which includes minimum property

standards. If this ordinance is approved this evening, May 1, 2020 will be the registration

and inspection kick off date.


On motion by Mayor Pro Tem Adams, seconded by Council Member Hander, the City

Council Unanimously approved Ordinance No. 5051, “AN ORDINANCE OF THE CITY

OF DENISON, TEXAS, AMENDING ORDINANCE NO. 5008; AMENDING CHAPTER

13 “NUISANCES”, ARTICLE VII, “PREMISES MAINTENANCE” OF THE CODE OF

ORDINANCES OF THE CITY OF DENISON, BY ADDING PART D “RENTAL

REGISTRATION PROGRAM”; PROVIDING A PENALTY; PROVIDING FOR

REPEALING, SAVINGS, AND SEVERABILITY CLAUSES; AND PROVIDING FOR

PUBLICATION AND AN EFFECTIVE DATE.”

D. Receive a report, hold a discussion and award the bid to 5W Contracting, LLC for the 2020

Spring Overlay Program in the amount of $441,567 and authorize the City Manager to enter

into a contract.

Council Action

Carrie Jones, Assistant Public Works Director, stated that the City started this annual

maintenance program for our streets back in 2016 and since then we have spent

approximately $3.2 million dollars on overlays and micro paving throughout the City. This

year, we are focusing on the east side of town. Ms. Jones then showed a map of the projected

areas and a chart showing the streets and their current PCI rating. Ms. Jones explained that

the way staff choses this and brings the recommendations to the subcommittee is that we

have an evaluation process where we look at the Pavement Condition index of each of the

streets and we also look at traffic counts and any planned or already completed utility work

on a certain street. Once we have a list of usually about 30 streets, we take this to the

subcommittee and have discussions about what streets needs to be replaced, removed or

added to the list. This year, we met in December of 2019 and came up with a list of about

30 streets and then narrowed that down to 21 streets, one alley and one parking lot to be

overlaid for this Spring 2020 Overlay Program. Out of the streets chosen, the average PCI

score is 33, with the lowest being 8 and the highest being 85. This 85 was scored prior to

any utility work being done. So, it is much lower now than what it was, but we don’t have

the updated PCI score to provide. The bid was put out to contractors on January 25, 2020

and staff opened the bids on February 13, 2020. Out of the 5 bids we received, the lowest

bid was from 5W Contracting LLC out of Sulphur Springs, TX for the amount of $441,567.

Staff recommends approval of awarding this contract to 5W Contracting LLC.

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On motion by Mayor Pro Tem Adams, seconded by Council Member Greenleaf, the City

Council unanimously approved awarding the bid to 5W Contracting, LLC for the 2020

Spring Overlay Program in the amount of $441,567 and authorized the City Manager to enter

into a contract.

7. EXECUTIVE SESSION

The Council then adjourned into Executive Session at 6:35 p.m. pursuant the Chapter 551, Texas

Government Code, in accordance with the Authority:

A. Consult with attorney on a matter in which the attorney's duty to the governmental

body under the Texas Disciplinary Rules of Professional Conduct conflicts with this

chapter and/or consult with attorney about pending or contemplated litigation or

contemplated settlement of the same. Section 551.071

1. Consult with City Attorney on HB2840 and Rules of Procedure.

2. Consult with City Attorney on City Council Meeting Security Plan.

B. Discuss the possible purchase, exchange, lease or sell of value of real property and public

discussion of such would not be in the best interests of the City's bargaining position. Section

551.072



D. Discuss the appointment, employment, evaluation, reassignment of duties, discipline, or

dismissal of or to hear a complaint against a public officer or employee. Section 551.074.


business prospect with which the City is negotiating for the location or retention of a facility,

or for incentives the City is willing to extend, or financial information submitted by the same.

Section 551.087

F. Discuss the deployment or specific occasions for implementation of security personnel

or devices. Section 551.076


G. Deliberations regarding economic development negotiations pursuant to Section 551.087.

11

RECONVENE INTO REGULAR SESSION

The Council then reconvened into Regular Session at 7:18 p.m. and took the following action:

A. Consult with attorney on a matter in which the attorney's duty to the governmental

body under the Texas Disciplinary Rules of Professional Conduct conflicts with this

chapter and/or consult with attorney about pending or contemplated litigation or

contemplated settlement of the same. Section 551.071.

1. Consult with City Attorney on HB2840 and Rules of Procedure.

Council Action

Mayor Gott stated that the Council will likely be taking action on this item so would

open this topic up for Public Comment. Mayor Gott asked if there was anyone present

who would like to speak to this item to please fill out a Request to Speak Card and

return it to Ms. Wallentine, City Clerk. They would then be called upon to speak once

the City Manager completed his presentation on this topic. Two gentlemen came

forward, filled out Request to Speak Cards with what were known to be false names

and handed them to Police Chief, Mike Gudgel. The names provided were Joey Steele

(real name of Aaron Jobe) who listed an address of 666 W. Travis Street, and Peter

Krop (real name of Daniel Marin) who listed an address of 915 W. Morton Street.

(This address is a property that was approved for demolition at the February 18, 2020

City Council Meeting. This particular individual also filled out a Request to Speak

Card on this agenda item and provided the name of Curtis Ironsides at an address of

2605 Thousand Oaks Drive). Chief Gudgel asked the gentlemen to please provide

their real names and addresses for the record. Both men refused and were then

escorted out of the Council Chambers.

Judson Rex, City Manager, stated that it has been the practice of the City to accept

public comment on action items since HB2840 was passed this last legislative session.

Our rules for that public comment period have never been formalized. So, in an effort

to be transparent about accepting public comments and what that looks like, we did

go ahead and draft a document to memorialize that. Mr. Rex then highlighted portions

of the policy.

The City of Denison recognizes the importance of engaging residents in the decision-

making process. The City Council and staff engage often with residents and seek open

and transparent dialogue during events and activities hosted by the City. The City Council

and staff readily make themselves available to meet individually with residents to answer

questions and listen to concerns. Resident engagement is also available digitally through

the City’s website and social media outlets. In addition, the City Council and other boards

and commissions reserve time during public meetings to gather public comment.

Consistent with HB 2840, the Open Meetings Act, and other state laws, the City Council

12

of the City of Denison may adopt reasonable rules governing the public comment portion

of public meetings. Accordingly, the following rules shall apply to the public comment

periods for all public meetings held by the City of Denison. Mr. Rex then touched on a

few of the guidelines. First, we do ask people to fill out a public comment card with

their full legal name and address prior to the meeting and then that is delivered to the

City Clerk who gives it to the Mayor or other presiding officer of the meeting to

introduce the person. We also want to maintain basic decorum in the meetings. So,

that is outlined here. Generally, comments are only taken on action items. Sometimes

we have informational items on the Agenda, which we will not take comments on.

Individuals wishing to speak on items listed under the Public Hearings section should

fill out a comment card as well, but their testimony will be taken during the actual

public hearing for that specific agenda item. Again, most of these we’ve been

practicing, we just want to put them into writing and formally adopt them and make

the rules transparent to those who come to the meetings.


On motion by Mayor Pro Tem Adams, seconded by Council Member Hander, the

City Council unanimously approved the rules of procedure as presented by the City

Manager.


Council Action

No action taken.

B. Discuss the possible purchase, exchange, lease or sell of value of real property and public

discussion of such would not be in the best interests of the City's bargaining position.

Section 551.072



D. Discuss the appointment, employment, evaluation, reassignment of duties, discipline, or

dismissal of or to hear a complaint against a public officer or employee. Section 551.074.


business prospect with which the City is negotiating for the location or retention of a

facility, or for incentives the City is willing to extend, or financial information submitted

by the same. Section 551.087

13

F. Discuss the deployment or specific occasions for implementation of security

personnel or devices. Section 551.076

1. Consult with City Attorney on City Council Meeting Security Plan

Council Action

No action taken.

G. Deliberations regarding economic development negotiations pursuant to Section 551.087.

There being no further business to come before the Council, the meeting adjourned at 7:25 p.m.

____________________________________

JANET GOTT, Mayor

Attest:

_______________________________


City Council Meeting

Staff Report

Agenda Item

Receive a report, hold a discussion, and take action on the reappointment of Spence Redwine and Todd

Catteau as members to the Community Development Steering/Housing Rehabilitation Committee.

Staff Contact

Felecia Winfrey, Management Assistant

[email protected]

903-465-2720

Summary

Spence Redwine and Todd Catteau are requesting to be reappointed to the Community

Development Steering/Housing Rehabilitation Committee.

Staff recommends approval.

Staff Recommendation

City Staff recommends approval of the reappointments.

Recommended Motion

“I move to reappointment of Spence Redwine and Todd Catteau as members to the Community

Development Steering/Housing Rehabilitation Committee.”

Background Information and Analysis

Spence Redwine and Todd Catteau both have terms which have expired on December 31st, 2019. Each

member would serve a third and final two-year term.

Financial Considerations

None.

Prior Board or Council Action

None.

Alternatives

Not to approve the appointment and reappointments to the Community Development Steering/Housing

Rehabilitation Committee.


Staff Report

Agenda Item

Receive a report, hold a discussion and take action on the creation and hiring of an additional Code

Compliance Officer.

Staff Contact

Robert Lay, Code Compliance Manager

[email protected]

903-465-2720 ext. 2457

Summary

Code Compliance requested hiring an additional Code Compliance Officer during budget process

for FY 2020, pending adoption of rental registration program.

Money for the position was placed in a contingency fund.

Additional Code Compliance Officer is needed with adoption of the Rental ordinance and the

continued Code Compliance Neighborhood Revitalization Initiative.

Pending approval, position would be advertised as an open position to be filled immediately.


Staff recommends the approval of adding one (1) additional Code Compliance Officer.

Recommended Motion

“I move to approve the creation and hiring of one (1) additional Code Compliance Officer”


Code Compliance requested an additional officer in the budget process for FY 2020 with the adoption

of a rental registration and inspection program. Funds were set aside in a contingency fund for the

position, pending ordinance adoption. This additional officer will be needed to facilitate the rental

program and allow Code Compliance to continue initiative of neighborhood revitalization across

Denison. If approved, position would be advertised as an open position to be filled immediately.


Money for the position was placed in a contingency fund, pending adoption of a Rental Registration

Program. Nine (9) months of salary and benefits were included, approx. $47,000. If position is filled by

April 1, only six (6) months of funds would be used.

Addition of one (1) Code Compliance Officer was budgeted at $4,938 monthly, including salary and

benefits. Staff budgeted for an annual salary of $44,740, falling in the middle of the newest pay plan.

Staff anticipates the costs coming in lower.


None

Alternatives

Do not approve the additional Code Compliance Officer or table the item to a later date.


Staff Report

Agenda Item

Receive a report, hold a discussion and take action on an ordinance repealing and restating ordinances

relating to Municipal Court Fees, codified as Chapter 2, “Administration”, Article VIII, “Municipal

Court Funds and Fees” of the Denison Code of Ordinances.

Staff Contact

Chris Wallentine, City Clerk/Court Administrator

[email protected]

(903) 465-2720, Ext. 2437

Summary

In the 2019 legislative session, the legislature passed Senate Bill 346 (hereinafter “SB 346”)

resulting in the repeal and restatement of various laws applicable to the allocation, collection, and

expenditure of municipal court costs and fees.

SB 346 also requires municipal treasuries to maintain separate funds for several of the costs: (1)

Municipal Court Building Security Fund, (2) Local Truancy and Prevention Diversion Fund, (3)

Municipal Court Technology Fund, and (4) Municipal Jury Fund.

This Ordinance establishes each of these funds, defines what a conviction is for the purpose of

assessing the fees and costs, grants the Judge of the Municipal Court authority to waive the costs

and fees under certain circumstances, and prescribes date ranges for the collection of certain costs

and fees.

This ordinance provides clear descriptions of the allowable expenditure of each fund in order to

comply with the numerous statutory guidelines.


Staff recommends approval of the ordinance.

Recommended Motion

“I move to approve the ordinance repealing and restating ordinances relating to Municipal Court Fees,

codified as Chapter 2, “Administration”, Article VIII, “Municipal Court Funds and Fees” of the Denison

Code of Ordinances.”


In the 2019 legislative session, the legislature passed Senate Bill 346 (hereinafter “SB 346”) resulting in

the repeal and restatement of various laws applicable to the allocation, collection, and expenditure of

municipal court costs and fees. In addition to the changed amounts of various court costs, SB 346 also

requires municipal treasuries to maintain separate funds for several of the costs: (1) Municipal Court

Building Security Fund, (2) Local Truancy and Prevention Diversion Fund, (3) Municipal Court

Technology Fund, and (4) Municipal Jury Fund. This Ordinance establishes each of these funds, defines

what a conviction is for the purpose of assessing the fees and costs, grants the Judge of the Municipal

Court authority to waive the costs and fees under certain circumstances, and prescribes date ranges for

the collection of certain costs and fees.

In addition to the changes made by SB 346, Article 45.203 of the Code of Criminal Procedure permits

the governing body of each municipality to prescribe rules by ordinance to enforce the collection, after

due notice, of a fine not to exceed $25 for certain offenses. This Ordinance provides those rules to

enforce the collection of this fee.

After collection of each of the local fees listed above, the City is limited by statute regarding the

expenditure of each of the funds. This Ordinance requires the Municipal Court to pay all monies

collected for the fees and costs listed above to the municipal treasurer of the City to be administered by

or under the direction of Council. This ordinance provides clear descriptions of the allowable

expenditure of each fund in order to comply with the numerous statutory guidelines.


None.


Ordinance No. 4972 adopted on November 5, 2018.

Alternatives

Modify the ordinance or table the item.

COURT COSTS

Texas Municipal Courts Education Center For conviction of offenses committed on or after January 1, 2020

OFFENSE/DESCRIPTION Consolidated Fees

State Fines

Total

State Local STF LTF CSF

Municipal Ordinance

Parking N/A 14.00 N/A N/A varies* 14.00*

Pedestrian N/A 14.00 N/A N/A N/A 14.00

Other city ordinances not categorized above 62.00 14.00 N/A N/A N/A 76.00

State Law

Transportation Code, Rules of the Road (Chapters 541-600)

Parking and Pedestrian (in school crossing zone) N/A 14.00 50.00 3.00 25.00 92.00

Parking and Pedestrian (outside school crossing zone) N/A 14.00 50.00 3.00 N/A 67.00

Passing a School Bus (Section 545.066) 62.00 14.00 50.00 3.00 25.00 154.00

Other Rules of the Road offense in a school crossing zone 62.00 14.00 50.00 3.00 25.00 154.00

Other Rules of the Road offense outside a school crossing

zone 62.00

14.00

50.00

3.00

N/A

129.00

Parking and Pedestrian Offense

(not under the Rules of the Road)

N/A 14.00 N/A N/A N/A 14.00

Education Code

Parent Contributing to Nonattendance (Section 25.093)

62.00 14.00 N/A N/A 20.00 96.00

All other fine-only misdemeanors not mentioned above 62.00 14.00 N/A N/A N/A 76.00

* Parking 542.202 or Chapter 682, Transportation Code:

• $2-$5 court cost for cities with population greater than 850,000 that have adopted appropriate ordinance, regulation, or order (mandatory). • Up to $5 court cost for cities with population less than 850,000 that have adopted appropriate ordinance, regulation, or order (optional).

CONSOLIDATED FEES AND STATE FINES BREAKDOWN

Chart Title Full Name Legal Authority Applies To Apportionment

Co

nso

lid

ate

d F

ees

State

Consolidated Fee Section 133.102, Local

Government Code

All but parking and pedestrian offenses 90% State, 10% City

If timely remitted on quarterly report

Local

Local Consolidated Fee Section 134.103, Local

Government Code

Nonjailable misdemeanor offenses,

including criminal violation of a municipal

ordinance

100% City

Must be allocated into one of four specific

funds based on percentages in Section

134.103(b), Local Government Code (see

separate chart below)

The money allocated may only be used for the

purposes indicated in the individual fund and

no other purpose

Sta

te F

ines

STF State Traffic Fine Section 542.4031,

Transportation Code

Rules of the Road offenses (Chapters 541-

600, Transportation Code)

96% State, 4% City

If timely remitted on quarterly report

LTF Local Traffic Fine Section 542.403,

Transportation Code

Rules of the Road offenses (Chapters 541-

600, Transportation Code)

100% City

CSF Child Safety Fine Article 102.014, Code

of Criminal Procedure

Rules of the Road offenses occurring in a

school crossing zone; passing a school bus;

parent contributing to nonattendance; some

city ordinance parking violations

100% City

Must be deposited in municipal child safety

trust fund in municipalities with population

greater than 850,000

For others, shall first fund school crossing

guard program with excess expended for

programs designed to enhance public safety

and security

LOCAL CONSOLIDATED FEE ALLOCATION

The Local Consolidated Fee is a $14 cost collected on all nonjailable misdemeanor offenses, including criminal violation of a municipal ordinance (Section 134.103, Local

Government Code). The municipal treasurer is required to allocate the $14 to four separate funds or accounts outlined below, based on percentages in the statute, and

maintain that individual fund or account. The money in the fund or account may only be used for the purposes provided by law (Section 134.151(a), Local Government

Code).

Allocation Specific Statute Percentage Dollar Amount Allowed Uses

Lo

cal

Co

nso

lid

ate

d F

ee

Municipal Court Building Security Fund Article 102.017, Code of

Criminal Procedure

35% 4.90 May only be used for security personnel, services, and

items related to buildings that house the operation of

municipal court. A non-exhaustive list of potential uses

is included in Article 102.017(c), Code of Criminal

Procedure.

Local Truancy Prevention and Diversion Fund

Section 134.156, Local

Government Code

35.7143% 5.00 May only be used to finance the salary, benefits,

training, travel expenses, office supplies, and other

necessary expenses relating to the position of juvenile

case manager. Money may not be used to supplement

the income of an employee whose primary role is not

juvenile case manager.

Municipal Court Technology Fund

Article 102.0172, Code of

Criminal Procedure

28.5714% 4.00 May only be used to finance the purchase of or to

maintain technological enhancements for a municipal

court. A non-exhaustive list of potential uses is

included in Article 102.0172(b), Code of Criminal

Procedure.

Municipal Jury Fund

Section 134.154, Local

Government Code

0.7143% .10 May only be used by municipality to fund juror

reimbursements and otherwise finance jury services

ADDITIONAL REIMBURSEMENT FEES AND FINES

Fee or Fine Amount Legal Authority Applies To Apportionment

No

na

pp

eara

nce

Failure to Appear/Violate

Promise to Appear Fine

Not to

exceed $25

Article 45.203(c), Code

of Criminal Procedure

For an offense of failure to appear

(FTA) or violate promise to appear

(VPTA)

100% City

City must have an ordinance of the collection

of the fine after due notice

Formerly known as the “Warrant Special

Expense Fee” prior to January 2020. Is now

assessed on the offense, not on a warrant.

Jury Impanelling

Reimbursement Fee

Actual Costs

incurred for

impanelling


Criminal Procedure

A party that does not waive jury trial

and who fails to appear for the trial

100% City

Pa

ssiv

e E

nfo

rcem

ent

Omnibase Reimbursement

Fee

$10 Section 706.007(d),

Transportation Code

Failure to appear or failure to satisfy

a judgment for any fine-only offense

if the city has contracted with the

Department of Public Safety

100% City

City must have contracted with the

Department of Public Safety

Fee retained by city, out of which OmniBase

is paid

Scofflaw Reimbursement

Fee

$20 Section 702.003,

Transportation Code

A person who has an outstanding

warrant for failure to appear or failure

to satisfy the judgment on a violation

of a traffic law if the city has

contracted with Department of Motor

Vehicles or County to deny vehicle

registration

100% Department of Motor Vehicles or County

Assessor-Collector

City must have contracted with the

Department of Motor Vehicles or County

Assessor-Collector

Third Party Collections 30% of the

unpaid fines,

fees, costs,

restitution,

or forfeited

bonds


Criminal Procedure

Unpaid fines, fees, costs, restitution,

or forfeited bonds if the city has a

contract with a third party

collections agency

By contract

Pa

ym

ents

Time Payment

Reimbursement Fee

$15


Criminal Procedure

A person convicted of a misdemeanor

and pays any part of the fine, court

costs, restitution, or another

reimbursement fee on or after the

31st day after the date judgment is

entered

100% City

City must deposit into a separate account in

the city’s general revenue fund to be used for

the purpose of improving the collection of

outstanding court costs, fines, reimbursement

fees, restitution, or improving the efficiency

of administration of justice

ADDITIONAL REIMBURSEMENT FEES AND FINES

The following fees are collected upon conviction for services performed by a peace officer (Article 102.011, Code of Criminal Procedure; Section 133.104, Local

Government Code).

$5 arrest reimbursement fee for issuing a written notice to appear in court following the defendant’s violation of a traffic law, municipal ordinance, penal law, or for

making an arrest without a warrant; when service is performed by a peace officer employed by the State, 20% is sent to the State on the quarterly report.

$50 warrant reimbursement fee for executing or processing an issued arrest warrant, capias, or capias pro fine; when service is performed by a peace officer employed by

the State, 20% is sent to the State on the quarterly report; when service is performed by another agency, that agency can request the amount of the fee.

$5 for serving a subpoena.

$5 for summonsing a jury.

$35 for serving any other writ (includes summons for a defendant or a child’s parent).

Other costs: costs for peace officer’s time testifying off duty or mileage for certain transports.

ORDINANCE NO. _________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENISON,

TEXAS, REPEALING AND RESTATING ORDINANCES RELATING TO

MUNICIPAL COURT FEES, CODIFIED AS CHAPTER 2,

“ADMINISTRATION”, ARTICLE VIII, “MUNICIPAL COURT FUNDS

AND FEES” OF THE CODE OF ORDINANCES; ADOPTING A

COMPREHENSIVE REGULATION OF MUNICIPAL COURT FEES AND

COSTS; PROVIDING FOR THE ALLOCATION OF COURT COSTS;

PROVIDING FOR THE MAINTENANCE OF FUNDS AND ACCOUNTS;

PROVIDING FOR THE EXPENDITURE OF MONIES ALLOCATED TO

CERTAIN FUNDS AND ACCOUNTS; PROVIDING FOR A SAVINGS,

REPEALING AND SEVERABILITY CLAUSE; PROVIDING FOR

PUBLICATION AND PROVIDING AN EFFECTIVE DATE.

WHEREAS, the City of Denison, Texas (“City”) is a home-rule municipality pursuant to

Section 5, Article XI of the Texas Constitution and exercises powers granted by the Texas

Constitution and the City’s Charter; and

WHEREAS, the City Council of the City of Denison, Texas (the “City Council”)

established the Denison Municipal Court and provided for a Judge and Clerk of such court by

adopting Article VI “Municipal Court” of the City of Denison’s Charter; and

WHEREAS, the City previously adopted Ordinance No. 4972, codified as Chapter 2,

Article VIII, of the Code of Ordinances, to adopt the municipal court funds and fees ordinance;

and

WHEREAS, Chapter 134 of the Local Government Code establishes requirements for the

collection, remittance, deposit, allocation, and expenditure of criminal fees payable to local

governments; and

WHEREAS, Sections 134.103 of the Local Government Code establishes the local

consolidated fee and requires payment of the cost upon conviction of a nonjailable misdemeanor

offenses, including criminal violations of municipal ordinances; and

WHEREAS, Sections 134.156 and 134.154 of the Local Government Code restricts the

expenditure of monies allocated to the local truancy prevention and diversion fund and the

municipal jury fund to specific purposes; and

WHEREAS, Articles 102.017 and 102.0172 of the Code of Criminal Procedure restricts

the expenditure of monies allocated to the municipal court security fund and municipal court

technology fund to specific purposes; and

WHEREAS, Article 45.203 of the Code of Criminal Procedure permits the governing

body of each municipality to prescribe rules by ordinance to enforce the collection, after due

notice, of a fine not to exceed $25 for an offense under Section 38.10, Penal Code, or Section

543.009, Transportation Code; and

WHEREAS, having reviewed the proposed fees, the City Council finds and determines

that the proposed fees are reasonable and appropriate; and

WHEREAS, the City Council does hereby find that it is in the best interest of the City to

repeal and restate said ordinance and to adopt a comprehensive municipal court fee ordinance to

prescribe rules for the assessment, collection, and expenditure of costs and fees is in support of the

health, safety, morals and general welfare of the City.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF

DENISON THAT:

SECTION 1. INCORPORATION OF PREMISES. The above and foregoing premises are true

and correct and are incorporated herein and made a part hereof for all purposes.

SECTION 2. AMENDMENT. Ordinance 4035, codified within Chapter 2, Article VIII, and

Ordinances 4598 and 4468 are hereby repealed. Chapter 2, Article VIII of the Denison Code of

Ordinances is hereby restated entirely as follows:

CHAPTER 2 – ADMINISTRATION

ARTICLE VIII. – MUNICIPAL COURT FUNDS AND FEES

Sec. 2-266. – Generally.

(a) The clerk of the court shall collect and pay all money collected from municipal court fees

to the municipal treasurer of the City of Denison, who shall deposit the costs and fees into

separate funds. The money allocated may only be used for the purposes indicated in the

individual funds, and for no other purpose.

(b) All fees collected pursuant to this ordinance, must be administered by or under the direction

of the Council.

Sec. 2-267. – Convictions for the purpose of assessing fees.

(a) The fees regulated by this ordinance shall be assessed and collected from the defendant

upon conviction for a misdemeanor offense in the municipal court as costs of court. A

defendant is considered convicted if:

(1) A judgment, sentence, or both are imposed on the person;

(2) The person is placed on deferred disposition; or

(3) The court defers final disposition or imposition of the judgement and sentence.

Sec. 2-268. – Waiver of Fees.

(a) The Judge of the Municipal Court may waive fees established or adopted by ordinance in

cases of demonstrated financial hardship if the defendant is indigent, has insufficient

resources or income to pay the fee, or is otherwise unable to pay all or part of the underlying

fine or costs. The Judge may grant time served or alternative methods of payment, such as

payment plans or community service, to discharge the fees, when necessary to comply with

Chapter 45 of the Code of Criminal Procedure, or when the Judge determines it is in the

interest of justice.

Sec. 2-269. – Assessment and collection of the local consolidated fee.

(a) The City of Denison Municipal Court shall assess a local consolidated fee in the amount

prescribed by Section 134.103 of the Local Government Code, as it exists or may be future

amended, in addition to all other required costs, against all defendants convicted of a

misdemeanor offense that was committed on or after January 1, 2020. Each misdemeanor

conviction shall be subject to a separate assessment of the fee.

(b) The local consolidated fee shall be deposited with the treasury of the municipality and

allocated into four separate funds. The money allocated may only be used for the purposes

indicated in the individual funds, and for no other purpose.

Sec. 2-270. – Allocation of the local consolidated fee.

(a) The local consolidated fee shall be allocated as follows:

(1) 35% to the municipal court building security fund;

(2) 35.7143% to the local truancy prevention and diversion fund;

(3) 28.5714% to the municipal court technology fund; and

(4) 0.7143% to the municipal jury fund.

Sec. 2-271. – Establishment and assessment of the municipal court building security fund.

(a) There is hereby created and established a municipal court building security fund,

hereinafter known as “security fund,” pursuant to Article 102.017, as it exists or may be

amended, of the Code of Criminal Procedure.

(b) The City of Denison Municipal Court is hereby authorized and required to asses a

municipal court building security fee in the amount of three dollars ($3.00) against all

defendants convicted of a misdemeanor offense committed on or after May 7, 2011 and

before January 1, 2020.

(c) The City of Denison Municipal Court is hereby required to asses a local consolidated fee

against all defendants convicted of a misdemeanor offense committed on or after January

1, 2020 and to designate the required percentage of that fee for the security fund.

(d) Each misdemeanor conviction shall be subject to a separate assessment of the fee.

Sec. 2-272. – Designated use of the security fund.

(a) The security fund shall be used only for financing the purchase of security devices and/or

services for the building or buildings housing the Municipal Court of the City of Denison,

including, but not limited to, the following:

(1) The purchase or repair of X-ray machines and conveying systems;

(2) Handheld metal detectors;

(3) Walkthrough metal detectors;

(4) Identification cards and systems;

(5) Electronic locking and surveillance equipment;

(6) Video teleconferencing systems;

(7) Bailiffs, deputy sheriffs, deputy constables, or contract security personnel during

times when they are providing appropriate security services;

(8) Signage;

(9) Confiscated weapon inventory and tracking systems;

(10) Locks, chains, alarms, or similar security devices;

(11) The purchase or repair of bullet-proof glass;

(12) Continuing education on security issues for court personnel and security personnel;

and/or

(13) Warrant officers and related equipment.

Sec. 2-273. - Establishment and assessment of the local truancy prevention and diversion

fund.

(a) The juvenile case manager fund, previously established pursuant to Article 102.0174 of the

Code of Criminal Procedure, is hereby retitled, created, and established as the local truancy

prevention and diversion fund, hereinafter known as the “truancy fund,” pursuant to

Section 134.156, as it exists or may be amended, of the Local Government Code.

(b) The City of Denison Municipal Court is hereby authorized to asses a juvenile case manager

fee in the amount of five dollars ($5.00) against all defendants convicted of a misdemeanor

offense that occurred prior to January 1, 2020 and to deposit those funds into the truancy

fund.

(e) The City of Denison Municipal Court is hereby required to asses a local consolidated fee


1, 2020 and to designate the required percentage of that fee for the truancy fund.

(c) Each misdemeanor conviction shall be subject to a separate assessment of the fee.

Sec. 2-274. – Designated use of the local truancy fund.

(a) The truancy fund shall only be used to finance the salary, benefits, training travel expenses,

office supplies, and other necessary expenses relating to the position of a juvenile case

manager employed under Article 45.056, as it exists or may be future amended, of the Code

of Criminal Procedure.

(b) If there is money in the fund after the costs of a juvenile case manager are paid, subject to

the direction of Denison City Council and approval of the Denison Municipal Court, a

juvenile case manager may direct the remaining money to be used to implement programs

directly related to the duties of the juvenile case manager, including juvenile alcohol and

substance abuse programs, educational and leadership programs, and any other projects

designed to prevent or reduce the number of juvenile referrals to the court.

(c) Money in the fund may not be used to supplement the income of an employee whose

primary role is not that of a juvenile case manager.

Sec. 2-275. – Establishment and assessment of the municipal court technology fund.

(a) There is hereby created and established a municipal court technology fund, hereinafter

known as “technology fund,” pursuant to Article 102.0172, as it exists or may be amended,

of the Code of Criminal Procedure.

(b) The City of Denison Municipal Court is hereby authorized and required to assess a

municipal court technology fee in the amount of four dollars ($4.00) against all defendants

convicted of a misdemeanor offense that was committed on or after May 1, 2001 and prior

to January 1, 2020.

(c) The City of Denison Municipal Court is hereby required to asses a local consolidated fee


1, 2020 and to designate the required percentage of that fee for the technology fund.

(d) Each misdemeanor conviction shall be subject to a separate assessment of the fee.

Sec. 2-276. – Designated use of the technology fund.

(b) The technology fund shall be used only to finance the purchase of or to maintain

technological enhancements for the Municipal Court of the City of Denison, Texas,

including, but not limited to:

(1) Computer systems;

(2) Computer networks;

(3) Computer hardware;

(4) Computer software;

(5) Imaging systems;

(6) Electronic kiosks;

(7) Electronica ticket writers; and/or

(8) Docket management systems.

(c) The fund shall be administered by or under the direction of the City Council of the City of

Denison, Texas.

Sec. 2-277. – Establishment and assessment of the municipal court jury fund.

(a) There is hereby created and established a municipal court jury fund, hereinafter known as

“jury fund,” pursuant to Article 134.154, as it exists or may be amended, of the Local

Government Code.

(b) The City of Denison Municipal Court is hereby required to asses a local consolidated fee


1, 2020 and to designate the required percentage of that fee for the jury fund.

(c) Each misdemeanor conviction shall be subject to a separate assessment of the fee.

Sec. 2-278. – Designated use of the jury fund.

(a) The jury fund shall be used only to fund juror reimbursements and otherwise finance jury

services.

Sec. 2-279. - Establishment and assessment of the warrant special expense fee.

(a) There is hereby created a special expense fee, pursuant to Articles 45.203 of the Code of

Criminal Procedure.

(b) The City of Denison Municipal Court is hereby authorized to asses a special expense fee

in the amount of twenty-five dollars ($25.00) against all defendants who fail to appear

pursuant to Section 38.10 of the Penal Code or Section 543.009 of the Transportation Code

when a warrant for arrest is issued for the defendant who failed to appear without showing

good cause.

(c) The special expense fee may be assessed for the issuance and service of warrants occurring

after the date of which this ordinance becomes effective.

Sec. 2-280. – Designated use of warrant special expense fees.

(a) Warrant special expense fees may be deposited into the general fund and administered for

the use and benefit of the municipality.

SECTION 3. SAVINGS/REPEALING CLAUSE. All provisions of any ordinance in conflict

with this Ordinance are hereby repealed to the extend they are in conflict; but such repeal shall not

abate any pending prosecution for violation of the repealed ordinance, nor shall the repeal prevent

a prosecution from being commenced for any violation if occurring prior to the repeal of the

ordinance. Any remaining portions of said ordinances shall remain in full force and effect.

SECTION 4. SEVERABILITY. Should any section, subsection, sentence, clause, phrase of this

Ordinance be declared unconstitutional or invalid by a court of competent jurisdiction, it is

expressly provided that any and all remaining portions of this Ordinance shall remain in full force

and effect. Denison hereby declares that it would have passed this Ordinance, and each section,

subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections,

subsections, sentences, clauses and phrases be declared unconstitutional or invalid.

SECTION 5. EFFECTIVE DATE. This Ordinance shall become effective immediately upon

its adoption and its publication as required by law.

SECTION 6. OPEN MEETINGS. That it is hereby found and determined that the meeting at

which this Ordinance was passed was open to the public as required by law, and that a public

notice of the time, place, and purpose of said meeting was given, all as required by Article 551.041,

Texas Government Code.

AND IT IS SO ORDERED.

On motion by Council Member ____________, seconded by Council Member

__________________, the above and foregoing ordinance was passed and approved on this the

16th day of March, 2020 by the following vote:

Ayes:

Abstentions:

Nays:

At regular meeting March 16, 2020.

__________________________________________

JANET GOTT, MAYOR

ATTEST:

_______________________________


APPROVED AS TO FORM:

________________________________

Julie Fort, City Attorney


Staff Report

Agenda Item

Receive a report, hold a discussion and take action on an Ordinance repealing and restating Chapter 18,

“Public Property”, Article III “Parks and Recreation Areas”, Division I, “Generally”, Section 18-73,

“Summer Day Camp and Other Non-School Day Programs Standards of Care.”

Staff Contact

Kimberly Bowen, Assistant Director of Parks & Recreation

[email protected]

(903) 465-2720 ext. 2510

Summary

• The City operates recreation programs for children, including elementary age children (ages 5

through 13).

• The Standards of Care are required to be adopted annually following a public hearing, for all

programs to be operated by the City’s Department of Parks and Recreation.

• Ordinance is to establish the Standards of Care program for all recreation programs for children

that the City operates.

• Ordinance revises the part of the Code that governs the summer day camp and other non-school

day programs Standards of Care not specific to the DREAM Camp.


Staff recommends approval of the Ordinance amending the existing standards of care.

Recommended Motion

"I move to approve the Ordinance repealing and restating Chapter 18, “Public Property”, Article III

“Parks and Recreation Areas”, Division I, “Generally”, Section 18-73, “Summer Day Camp and Other

Non-School Day Programs Standards of Care."


The City operates recreation programs for children, including elementary age children (ages 5 through

13) (collectively “Programs” and each a “Program”). Section 42.041 of the Texas Human Resources

Code provides that no person may operate a child-care facility or a child-placing agency without a

license issued by the Texas Department of Family and Protective Services, but provides an exception

from that requirement in Section 42.041(b)(14) of the said Code for an elementary-age (ages 5 through

13) recreation program operated by a municipality, provided the governing body of the municipality

annually adopts standards of care by ordinance after a public hearing for such programs. The

Standards of Care are required to be adopted annually following a public hearing, for all programs to

be operated by the City’s Department of Parks and Recreation. The Director of the Department, or the

Director’s designee shall administer the programs in accordance with the Standards of Care.

The Director shall provide the Standards of Care to the parents of each Program participant (and, in the

event the Director adopts rules that are more restrictive than the Standards of Care, shall provide such

rules to the parents of each Program participant). Further, the Director, or the Director’s designee,

shall inform the parents of each Program participant that the Program is not licensed by the State of

Texas.

The Program shall not be advertised as a child-care facility. The Director is authorized to take any and

all steps, if any, as may be necessary to confirm the Program’s exemption from State law as set forth in

Section 42.041 of the Texas Human Resources Code.


No financial consideration with regards to the standards of care.


The Council approved an Ordinance for Standards of Care at the March 4, 2019 City Council meeting.

Alternatives

The alternative action would be to not approve the ordinance, modify the ordinance or table the item.

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ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENISON,

TEXAS, REPEALING AND RESTATING CHAPTER 18, “PUBLIC

PROPERTY”, ARTICLE III “PARKS AND RECREATION AREAS”,

DIVISION I, “GENERALLY”, SECTION 18-73, “SUMMER DAY CAMP

AND OTHER NON-SCHOOL DAY PROGRAMS STANDARDS OF CARE”

OF THE CITY OF DENISON CODE OF ORDINANCES IN ORDER TO

ADOPT REVISED STANDARDS OF CARE FOR YOUTH RECREATION

PROGRAMS CONDUCTED BY THE CITY FOR ELEMENTARY AGE

CHILDREN AGES 5 THROUGH 13; PROVIDING FOR COMPLIANCE

WITH STATE LAW; PROVIDING SEVERABILITY, REPEALER AND

SAVINGS CLAUSES; PROVIDING AN EFFECTIVE DATE; AND

FINDING AND DETERMINING THE MEETING AT WHICH THIS

ORDINANCE IS ADOPTED TO BE OPEN TO THE PUBLIC AS

REQUIRED BY LAW.

WHEREAS, the City of the Denison, Texas (the “City”) is a home rule municipal

corporation pursuant to article 11, section 5 of the Texas Constitution and its Home Rule Charter;

and

WHEREAS, the City operates recreation programs for children, including elementary age

children (ages 5 through 13); and

WHEREAS, Section 42.041 of the Texas Human Resources Code provides that no person

may operate a child-care facility or a child-placing agency without a license issued by the Texas

Department of Family and Protective Services, but provides an exception from that requirement

in Section 42.041(b)(14) of the said Code for an elementary-age (ages 5 through 13) recreation

program operated by a municipality, provided the governing body of the municipality annually

adopts standards of care by ordinance after a public hearing for such programs; and

WHEREAS, the City Council held a public hearing on March 16, 2020 regarding

standards of care for its recreation program for elementary age children (ages 5 through 13) in

accordance with Section 42.041(b)(14) of the Human Resources Code, and following such public

hearing, the City Council desires by this Ordinance to adopt such standards of care.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF

DENISON, THAT:

SECTION 1. Incorporation of Premises. That the above and foregoing premises are true and

correct and are incorporated herein and made a part hereof for all purposes.

SECTION 2. Adoption of Standards of Care. The standards of care set forth in Exhibit “A”

attached hereto and made a part of this Ordinance for all purposes (the “Standards of Care”) are

hereby adopted as the standards of care for all elementary age (ages 5 through 13) recreation

programs operated by the City (collectively “Programs” and each a “Program”), including, without

limitation, any summer camp program or any spring break program.

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All Programs are to be operated by the City’s Department of Parks and Recreation (“Department”).

The Director of the Department, or the Director’s designee, (individually or collectively, the

“Director”), shall administer the Programs in accordance with the Standards of Care. The Director

may adopt rules in writing relating to the operation of Programs, which rules may be more

restrictive than the Standards of Care. The Programs shall be operated in accordance with the

Standards of Care (or, in the event the Director adopts rules that are more restrictive than the

Standards of Care, in accordance with such rules).

The Director shall provide the Standards of Care to the parents of each Program participant (and,

in the event the Director adopts rules that are more restrictive than the Standards of Care, shall

provide such rules to the parents of each Program participant). Further, the Director, or the

Director’s designee, shall inform the parents of each Program participant that the Program is not

licensed by the State of Texas.

The Program shall not be advertised as a child-care facility. The Director is authorized to take any

and all steps, if any, as may be necessary to confirm the Program’s exemption from State law as

set forth in Section 42.041 of the Texas Human Resources Code.

SECTION 3: Severability. If any provision, section, subsection, sentence, clause or the

application of same to any person or set of circumstances for any reason is held to be

unconstitutional, void or invalid or for any reason unenforceable, the validity of the remaining

portions of this ordinance or the application thereby shall remain in effect, it being the intent of

the City Council of the City of Denison, Texas, in adopting this ordinance, that no portion thereof

or provision contained herein shall become inoperative or fail by any reasons of unconstitutionality

of any other portion or provision.

SECTION 4: Repealer and Savings. This Ordinance shall be cumulative of all other ordinances

of the City and shall not repeal any of the provisions of such ordinances except in those instances

where provisions of those ordinances are in direct conflict with the provisions of this Ordinance;

whether such ordinances are codified or uncodified, and all other provisions of the Ordinances of

the City of Denison, codified or uncodified, not in conflict with the provisions of this Ordinance,

shall remain in full force and effect.

SECTION 5: Publication and Effective Date. This Ordinance shall become effective from and

after its date of passage and approval.

SECTION 6: Open Meeting. That it is hereby officially found and determined that the meeting

at which this ordinance was passed was open to the public as required by law, and that public

notice of the time, place, and purpose of said meeting was given all as required by Section 551.041,

Texas Government Code.

AND IT IS SO ORDERED.

On motion by Council Member ____________, seconded by Council Member ____________, the

above and foregoing ordinance was passed and approved by the following vote:

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Ayes:

Nays:

Abstentions:

At regular meeting held on March 16, 2020.

JANET GOTT, MAYOR

ATTEST:


APPROVED AS TO FORM:

Julie Fort, City Attorney

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EXHIBIT “A”

STANDARDS OF CARE

FOR ELEMENTARY AGE (5 – 13) RECREATION PROGRAMS

Sec. 18-73. - Summer day camp and other non-school day programs standards of care.

The following standards of care have been adopted by the City Council of the City of Denison,

Texas to comply with the amendment to Section 42.041(b)(14) of the Texas Human Resources

Code.

The standards of care herein set forth are intended to be minimum standards by which the City

of Denison will operate the city's youth programs. The programs operated by the city are

recreational in nature and are not licensed by the State of Texas as certified day care programs.

The Texas Department of Family and Protective Services will issue an exemption determination

certificate to the City of Denison.

(1) Administration.

a. Definitions.

1. City means City of Denison, Texas.

2. City council means City Council of the City of Denison, Texas.

3. Department means City of Denison Parks and Recreation Department and the

Denison Public Library.

4. Youth program(s) mean City of Denison Youth Programs consisting of the

summer day camp and other non-school day programs that last one (1)

consecutive week (five (5) days) or longer.

5. Operations manual means notebook of policies, procedures, required forms,

organizational and programming information relevant to City of Denison Youth

Programs.

6. Program manual means notebook of information given to program leaders which

includes rosters, attendance sheets, lesson plans, disciplinary action forms, etc.

7. Director means City of Denison Department Director or his/her designee.

8. Program coordinator or coordinator means City of Denison staff who has been

assigned administrative responsibility for a City of Denison Youth Program.

9. Program leader means City of Denison full-time, part-time, seasonal staff,

temporary staff, contract instructor or volunteer who has been assigned

responsibility to implement the city's youth programs.

10. Program site means area or facilities where City of Denison Youth Programs

are held.

11. Participant means a youth whose parent(s) or guardian(s) have completed all

required registration procedures and are determined to be eligible for a City of

Denison Youth Program.

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12. Parent(s). This term will be used to represent one (1) or both parent(s) or

guardian(s) who have legal custody and authority to enroll their child(ren) in the

City of Denison Youth Program.

13. Program staff. Term used to describe the person or persons who have been hired

or have volunteered to work for the City of Denison and have been assigned

responsibility for managing, administering, or implementing some or all

portions of the City of Denison Youth Programs. This definition also includes

program coordinator and program leader.

14. Community center means one (1) type of facility used to host any program.

b. Organization.

1. The governing body of the youth program is the city council.

2. Implementation of the Denison Youth Programs Standards of Care is the

responsibility of the director and program staff.

3. Youth programs to which these standards of care will apply are the summer day

camp, and other non-school day programs that last one (1) consecutive week

(five (5) days) or longer.

4. Each program site will have a current copy of the standards of care available for

the public and program staff.

5. Parents of participants will be given access to a current copy of the standards of

care prior to the start of the youth program, preferably during the registration

process.

6. Criminal background checks will be conducted on prospective program staff. If

results of the criminal check indicate that an applicant has been convicted of any

of the following offenses, he or she will not be considered for employment:

i. A felony or a misdemeanor classified as an offense against a person or

family;

ii. A felony or a misdemeanor classified as public indecency;

iii. A felony or a misdemeanor violation of any law intended to control the

possession or distribution of any controlled substance;

iv. Any offense involving moral turpitude; or

v. Any offense that would potentially put the City of Denison at risk.

vi. In addition, checks of the Texas Department of Public Safety database for

the Texas Sex Offender Registration Program will be conducted on

prospective program staff. If results of the check indicate that an applicant

is a registered sex offender, he or she will not be considered for

employment.

c. Fiscal management.

1. The program will follow the written policies and procedures of fiscal

management set forth by the City of Denison.

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2. The program will have sound fiscal management and operational oversight of

the program.

3. The program will have a written budget.

4. Financial statements of the program will be reviewed regularly by the director

and adjustments will be made as needed.

(2) Staffing.

a. Program coordinator (coordinator) qualifications.

1. Coordinators are considered professional staff members of the department and

must have all program leader qualifications as outlined in subsection (2)c. of this

document.

2. Coordinators must be at least twenty-one (21) years old. Coordinators should

possess the following combination of experience and training:

i. Two (2) years of responsible community center service or recreational

programming experience.

ii. Equivalent to a bachelor's degree from an accredited college or university

with major course work in sports management, physical education,

recreation, or a related field.

3. Coordinators must pass a background investigation, including a test for illegal

substances.

4. Coordinators must have a current certification in first aid and cardiopulmonary

resuscitation (CPR). These certifications must be from a nationally recognized

certifying organization, i.e., American Heart Association or American Red

Cross.

b. Coordinator responsibilities.

1. Coordinators are responsible for administrating the youth program's daily

operations in compliance with the adopted standards of care.

2. Coordinators are responsible for recommending the hiring, supervising, and

evaluating of program leaders.

3. Coordinators are responsible for planning, implementing, and evaluating youth

programs.

c. Program leader (leader) qualifications.

1. Leaders will be full-time, part-time, seasonal, contractors and/or temporary

employees of the City of Denison or volunteers.

2. Volunteers working with participants must be age thirteen (13) or older; however,

each program site will have at least one (1) staff twenty-one (21) years or older

present at all times.

3. Leaders must have a current certification in first aid and cardiopulmonary

resuscitation (CPR). These certifications must be from a nationally recognized

certifying organization, i.e., American Heart Association or American Red

Cross.

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4. Leaders must pass a background investigation, including a test for illegal

substances.

5. Leaders must have a minimum of six-months' experience in recreation, education,

or youth programs.

6. Leaders must possess an accredited high school diploma or GED certificate from

the state in which it was acquired.

d. Leader responsibilities.

1. Leaders will be responsible for providing participants with an environment in

which they can feel safe, enjoy wholesome recreation activities, and participate

in appropriate social opportunities with their peers.

2. Leaders will be responsible to know and adhere to all city, departmental, and

youth program standards, policies and procedures that apply to youth programs.

3. Leaders must ensure that participants are released only to a parent or an

authorized person designated by the parent. If a parent wishes that their child

sign himself in or out, the parent must sign a release giving said authorization.

Any child signing themselves out cannot stay at the facility or on the premises.

4. Leaders will be responsible for supervised access to the restrooms for

participants.

5. Program staff will:

i. Consistently exhibit competency, good judgment and self-control when

working with participants.

ii. Relate to youth with courtesy, respect, tolerance, and patience.

iii. Intentionally develop individual relationships with youth, focusing on their

developmental needs and building on their unique strengths.

iv. Create a supportive, caring environment and build self-esteem in every

participant.

v. Be engaged in activities with the participants.

vi. Recognize participants for their achievements and participation.

vii. Clearly communicate behavior expectations.

viii. Apply rewards and consequences appropriately and consistently for

participant behavior.

ix. Model and reinforce positive behavior and use positive techniques to address

negative behavior by participants.

e. Training/orientation.

1. The department is responsible to provide training and orientation to youth

program staff in working with participants and for specific job responsibilities.

Coordinators will provide each leader with a program manual specific to each

youth program.

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2. Program staff must be familiar with the standards of care for youth programs as

adopted by the city council.

3. Program staff must be familiar with the youth program's policies, including

discipline, guidance, and release of participants as outlined in the program

manual.

4. Program staff will be trained in appropriate procedures to handle emergencies.

5. Program staff will be trained in areas including city, department, and youth

program policies and procedures, recreation activities organization, safety

issues, program organization, and other areas as required by assigned youth

program.

6. Program staff will be required to sign an acknowledgment that they received the

required training.

(3) Program operations.

a. Enrollment.

1. Before a child can become a youth program participant, a parent or guardian

must register their child and provide the following information:

i. Name, address, and home telephone number;

ii. Contact names and telephone numbers in case of emergency;

iii. The names and telephone numbers of people to whom the child can be

released;

iv. A statement of the child's special problems and/or needs;

v. Emergency medical authorization with doctor's name and telephone number;

vi. A signed liability waiver;

vii. A signed release to participate in water activities;

viii. Designation of need for reasonable accommodations;

ix. Signed acknowledgement of program code of conduct; and

x. Proof of date of birth.

b. Staff-participant ratio.

1. In a youth program, the standard ratio of participants to program staff is no more

than twelve (12) to one (1), based on average daily attendance. In the event a

leader is unable to report to the program site, the coordinator will assign a

replacement.

2. Ratios may be adjusted to provide adequate supervision during higher risk

activities, such as field trips, swimming, etc.

c. Special needs.

1. The program is aware of, records, and informs staff of special needs of

participants.

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2. Every reasonable accommodation will be made to address participants with

special needs.

3. Participants with special needs requiring personal assistance, i.e., feeding,

changing of clothes, and using the restroom, must provide an attendant (eighteen

(18) years of age or older) for the duration of the program. Program staff will

not provide personal assistance. The attendant will be admitted to the program

free of charge. Any additional fees must be paid by the personal attendant. With

appropriate notice, accessible vehicles will be made available for transportation

to authorized field trips.

(4) Activities.

a. The program provides a safe, healthy, and age appropriate environment for all

participants. The program provides a well-rounded variety of activities and

opportunities that support the physical, social, emotional, and cognitive growth and

development of all participants.

b. Schedule.

1. The program establishes and follows a schedule that is known to program staff,

participants, and parents.

2. The daily schedule will be available for program staff, participants, and parents.

3. The daily schedule will be flexible enough to provide adaptability but structured

enough to provide predictability for the participants.

4. Transitions will be programmed into the schedule and will be orderly, efficient,

and minimal in duration.

5. There will be a written activity plan anytime children are in care for over five

(5) hours.

6. A rest time will be provided when children are in care for over five (5) hours.

7. The program schedule will provide intentional opportunities for participants to

be meaningfully involved in program planning, implementation, data collection,

and evaluation. Participant feedback will be incorporated into the program when

possible.

8. Program staff will attempt to provide indoor and outdoor time periods to

include:

i. Alternating active and passive activities;

ii. An appropriate amount of time for all activities;

iii. Opportunity for individual, small and large group activities; and

iv. Outdoor time each day as weather permits based upon space availability

and weather conditions.

9. Participants are provided with a variety of engagement strategies, such as:

i. Individual, small group, and large group activities;

ii. Short and long-term projects;

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iii. Discovery learning;

iv. Hands-on projects;

v. Instructor-led programs;

vi. Experiential activities that promote creativity and self-expression.

c. Field trips.

1. Program staff will be attentive and considerate of the participant's safety on field

trips and during any transportation provided by the youth program.

i. During field trips, program staff will have authorization for emergency

medical care and emergency contact information for each participant.

ii. Program staff will have a written list of the participants in their group and

must check the roll frequently, specifically before departure to and from

destination.

iii. Program staff will have first aid supplies.

2. Before a participant can participate in city-sponsored activities, a field trip

release, located in the registration packet, must be completed by the parent.

3. First aid supplies will be available in all youth program field trips.

4. Participants will be oriented to expected behavior and safety rules.

5. Participants will be given identification with the location's name and phone

number to be worn at all times while on a field trip.

d. Participant pick up and drop off.

1. A completed and signed pick-up authorization form must be on file for each

participant.

2. These forms must be updated each year.

3. The original signer of the pick-up authorization form may contact the center in

person to add a new authorized person, with written notification. The original

signer may also contact the center via telephone and make changes verbally

using the safety word on the pick-up authorization form.

4. Participants must only be signed out by an authorized person listed on the pick-

up authorization form. One (1) staff person must monitor the sign in/out duties

each day.

5. Authorized persons must present picture ID to pick up a participant.

6. Authorized persons must be eighteen (18) or older unless the person is sixteen

(16) or older and a sibling of the participant.

7. Sign in/sign out sheets will be kept by the program site for at least three (3)

months after the youth program has ended.

8. Participants may be signed out by a custodial parent, unless court paperwork is

given to program staff.

9. Parents may sign a form allowing their child to walk home at the end of the

program.

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10. Participants must be picked up by the end of the assigned youth program. If a

child is picked up after the end of the program, a late fee will be assessed. If a

child has not been picked up within thirty (30) minutes after the program has

ended, the police will be called.

11. If an authorized person attempts to pick up a participant while appearing

intoxicated, staff will ask if there is another person who can pick up the

participant.

12. If any unauthorized person attempts to pick up a child, staff should:

i. Call the program coordinator.

ii. Politely inform the person that they do not have permission to release the

child to them.

iii. Ask the person to leave.

iv. Move the participant at risk to another room or area.

v. Have another program staff in the pick-up area.

vi. The coordinator should call the original authorized person to inform them

of the unauthorized pick up attempt.

vii. If necessary, program staff should call 911.

e. Discipline.

1. Program staff will execute discipline and guidance in a consistent manner based

on the best interests of participants.

2. There will be no cruel treatment or harsh punishment (physical or verbal abuse).

Examples include, but are not limited to:

i. Using physical punishment or any action administered to the body such as,

but not limited to rough handling, or forcing child(ren) to assume an

uncomfortable position.

ii. Restraining movement by tying, enclosing in a confined space, shaking, or

using exercise as punishment.

iii. Being verbally abusive, including, but not limited to, threats, belittling

remarks, humiliation, embarrassment, or frightening a child.

iv. Giving any child the authority to punish another child.

v. Placing a child out of visual/hearing range, in the dark, or in an unventilated

area.

vi. Punishing a child for a toileting accident.

vii. Taunting a child by or any other form of jeering.

viii. Giving preferential attention to any child over another child.

3. Program staff will use brief, supervised, separation (time out) from the group,

if necessary.

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4. As necessary, program staff will initiate discipline reports to the parents of

participants. Parents will be asked to sign participant discipline reports to

indicate they have been advised about specific problems or incidents.

i. A sufficient number and/or severe nature of discipline report(s), as detailed

by the disciplinary action policy in the program and operations manuals,

may result in a participant being suspended from the youth program

immediately. If a participant is suspended from the program, an authorized

person must pick up the participant within one (1) hour.

ii. Participants will be removed from the program site as soon as possible in

instances of danger to other participants or program staff. This includes, but

is not limited to, continuous disruption of the youth program, inappropriate

sexual behavior, bullying, hitting or biting other participants or program

staff and damage to any city property.

5. Participants are expected to abide by program rules that include, but are not

limited to:

i. Showing respect to all participants and program staff.

ii. Bullying of any form (cyber, physical, verbal, etc.).

iii. Refraining from using abusive or foul language.

iv. Refraining from causing bodily harm to self, other participants, or program

staff.

v. Refraining from any inappropriate touching.

vi. Bringing any toys, electronics, etc. to the youth program.

vii. Refraining from roughhousing in any manner.

viii. Using social media sites during camp hours.

ix. Refraining from taking photographs of any kind.

x. Respecting all equipment, supplies, and facilities.

xi. Cleaning up after themselves at all times.

xii. Respecting the property of other participants.

xiii. Listening to and taking direction from all program staff.

xiv. Staying within the physical boundaries of the program site at all times,

unless with a program staff or parent.

(5) Facility operations.

a. Inspection/monitoring/enforcement.

1. The coordinator of each youth program will perform a monthly inspection of

the facility to maintain compliance with the standards of care.

i. Inspection reports will be sent to the director for review and kept on record

for at least two (2) years.

ii. The director will review the report and establish deadlines and criteria for

compliance with the standards of care.

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2. The director will make visual inspections of the youth program based on the

following schedule:

i. Summer day camp sites will be inspected once during each session.

ii. The other non-school day youth programs will be inspected once during

the session.

3. Complaints regarding enforcement of the standards of care will be directed to

the coordinator. The coordinator will be responsible for taking the necessary

steps to resolve the problems. The coordinator will record complaints regarding

enforcement of the standards of care and their resolution. The director will

address serious complaints regarding enforcement of the standards of care and

the complaints and resolutions will be noted.

4. The director will make an annual report to the park board on the overall status

of the youth programs and their operation relative to compliance with the

adopted standards of care.

b. Program area.

1. The youth program's indoor space (when applicable) meets the physical, social,

emotional, and cognitive needs of participants.

2. The youth program's outdoor space (when applicable) is large enough,

appropriately equipped, and safe to allow participants to be active and

independent.

3. The youth program's space meets the needs related to planning, activities, and

storage.

4. Buildings, grounds, and equipment on the program site are regularly inspected,

cleaned, repaired, and maintained to protect participants' health.

(7) Health and safety.

a. Health.

1. Illness or injury.

i. A participant who is considered to be a health or safety concern to other

participants or program staff will not be admitted to the youth program.

ii. Illnesses and injuries will be handled in a manner to protect the health of

all participants and program staff. Participants having a temporal fever over

one hundred (100) degrees will not be allowed back into the youth program

for twenty-four (24) hours.

iii. Program staff will follow emergency procedures for injured participants

or for participants with symptoms of an acute illness.

iv. In the event of an emergency and/or serious accident, parents will be

notified immediately. If necessary, the Denison Emergency Medical

Service will transport the participant to the nearest hospital.

v. In the case of a minor accident or injury (bumps and bruises), the program

staff will administer first aid, monitor the participant, and notify the parents

at pick-up.

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vi. Parents will be notified if a child is injured in a way that necessitates

emergency care.

vii. Program staff will follow the recommendations of the Texas Department

of State Health Services concerning the admission or readmission of any

participant after a communicable disease, and a doctor's note will be

required allowing participant's readmission to the program.

viii. If a participant becomes sick while in the program, the parent or

authorized person(s) must contact staff within one (1) hour to arrange pick

up. If no contact is made within one (1) hour after initial contact by staff,

the police will be notified.

2. Program staff will administer medication subject to the following conditions:

i. Parents must complete, sign, and submit authorization to administer

medication detailing medication name(s), time(s) to be administered, and

dosage(s) for youth enrolled in program lasting more than three (3) hours.

The release will include a hold harmless clause to protect the city.

ii. Prescription medications are in the original containers labeled with the

participant's name, date, directions, and the physician's name. The

prescribing physician must provide written guidelines. Program staff will

administer the medication only as stated on the label. Program staff will not

administer medication after the expiration date.

iii. Non-prescription medications are labeled with the participant's name and

the date the medication was brought to the youth program. Non-prescription

medication must be in the original container. Program staff will administer

medication only according to label directions and with written parental

permission.

iv. Except in instances where an accommodation may be necessary under the

ADA, program staff will be limited to dispensing and administering those

medications that do not require special knowledge, skills, or training.

Medication will be properly disposed of at the end of the program.

3. Program staff will ensure medications are inaccessible to participants. If

necessary, medications will be kept in the refrigerator.

4. A medication record form will be kept by the coordinator detailing when

medication was administered.

b. Safety.

1. Program staff will supervise participants to ensure their safety.

2. Program staff will inspect program sites daily checking for sanitation and safety

concerns that might affect the health and safety of participants.

3. Program site equipment and supplies will be safe for participants use.

4. Program staff will have first aid supplies available at each program site in a

designated location, during transportation, and for the duration of any off-site

activity.

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5. The youth program will ensure that the appropriate program staff working with

participants are trained in CPR and first aid.

6. Participants will have access to clean drinking water at all times.

7. Program site air conditioners, electric fans, and heaters will be mounted out of

participant's reach or have safeguards that keep participants from being injured.

8. Program site porches and platforms more than thirty (30) inches above the

ground will be equipped with railings with the exception of performance stages.

c. Emergencies.

1. Each youth program will have an emergency operations manual that will be

reviewed with all program staff.

i. When applicable, staff will follow directives of the emergency management

office.

2. Fire.

i. In case of fire, danger of fire, explosion, or other emergency, program staff's

first priority is to evacuate the participants to a pre-designated safe area.

ii. The program site will have an annual fire inspection by the local fire

marshal, and the resulting report will detail any safety concerns observed.

The report will be forwarded to the director who will review it and enforce

the deadline and criteria for compliance.

iii. All program staff will be trained in the proper use of the fire extinguisher.

3. Tornados.

i. Tornado warning procedures will be reviewed will all program staff during

orientation.

d. Communication.

1. Each remote program site will have a cell phone designated to allow the program

site to be contacted by program staff. Each program site will have access to a

telephone for use in contacting program staff or making emergency telephone

calls. At each program site the coordinator will post the following telephone

numbers adjacent to a telephone accessible to all program staff:

i. City of Denison Emergency Medical Services.

ii. City of Denison Police Department.

iii. City of Denison Fire Department.

iv. Parks and recreation department administrative office and Denison Public

Library.

v. Telephone numbers and address for the program site itself.

vi. Telephone number of coordinator's office.

vii. Program participants' emergency contact information.

viii. Poison control.

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e. Nutrition.

1. The program will be serving food provided by the Denison ISD Summer Food

Service Program or by a similar nutritional program.

2. Special snacks may be provided during the program. Parents must note any food

allergies on participant's registration form.

f. Suspected abuse.

1. Program staff will report suspected child abuse to the Texas Department of

Family and Protective Services, in accordance with the Texas Family Code,

telephone number, 1-800-252-5400 or filing a report at

https://www.txabusehotline.org/Login/WebSite_UI/Report-anon.aspx.

2. Program staff will receive basic training related to child abuse prevention and

how to report suspected abuse.

g. Toilet facilities.

1. The program site will have toilets located and equipped so participants can use

them independently.

2. An adequate number of toilets and lavatories will be provided.

h. Sanitation.

1. The indoor program sites must have adequate light, ventilation, air conditioning

and heat.

2. The program site will have an adequate supply of water meeting the Texas

Department of State Health standards for drinking water. Water will be supplied

to the participants in a safe and sanitary manner.

3. All waste matters will be kept in a leak-proof, covered container.

4. Program staff will remove garbage from program sites daily.


Staff Report

Agenda Item

Receive a report, hold a discussion and take action on an ordinance amending Chapter 13, “Nuisances”,

Article II and Articles IV-VII “Penalties” allowing for escalating penalties for repeat convictions.

Staff Contact

Robert Lay, Code Compliance Manager

[email protected]

903-465-2720 ext. 2457

Summary

Code Compliance works thousands of Code violations annually.

Many properties commit same violation multiple times in a year.

Some property owners pay citation fees and never bring property into compliance.

Code Compliance desires all properties to come into compliance for the benefit of Denison

neighborhoods safety and attractiveness

Escalating penalties would discourage repeat violations and simply paying citation fees

Rental Registration and Inspections stakeholder committee was supportive of an ordinance for

escalating penalties.


Staff recommends approving ordinance amendment to Chapter 13, Articles II and IV-VII “Penalties”

Recommended Motion

“I move to approve the ordinance amending Chapter 13, “Nuisances”, Article II and Articles IV-VII

“Penalties” allowing for escalating penalties for repeat convictions.”


Code Compliance Officers work thousands of Code violations annually. Many violations are committed

by the same property owners or at the same properties each year and repeat those violations multiple

times in a year. In some cases, citizens simply pay the citation fees and never come into compliance with

City ordinance. The City in an effort to push for compliance, is proposing an amendment to Chapter 13,

Articles II and IV-VII escalating the fees associated with citations issued which would discourage the

repeat of same violations or simply paying fines and not bringing properties into compliance.

During the stakeholder committee meetings for Rental Registrations and Inspections, escalating penalties

was discussed. The committee was in support of adopting an ordinance addressing penalties.


None


None

Alternatives

Do not approve ordinance, table item for future consideration or make recommendations for revisions

to the ordinance.

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ORDINANCE NO. ____________

AN ORDINANCE OF THE CITY OF DENISON, TEXAS,

AMENDING CHAPTER 13 “NUISANCES”, OF THE CODE

OF ORDINANCES OF THE CITY OF DENISON, BY

AMENDING ARTICLE II, “LITTER, TRASH, WEEDS AND

OTHER NUISANCES” SECTION 13-19 “PENALTY UPON

FAILURE TO COMPLY”; BY AMENDING ARTICLE IV,

“JUNKED AND INOPERABLE VEHICLES” SECTION 13-75

“PENALTY FOR VIOLATION OF DIVISION”; BY

AMENDING ARTICLE VII, “PREMISES MAINTENANCE”

SECTION 13-144 “VIOLATION; PENALTY”; BY

AMENDING ARTICLE VII, “PREMISES MAINTENANCE”

SECTION 13-193 “VIOLATION; PENALTY”; BY ADDING

CHAPTER 13 “NUISANCES”, ARTICLE V, “NOISE”

SECTION 13-103; BY ADDING CHAPTER 13

“NUISANCES”, ARTICLE VI, “SEPTIC AND SIMILAR

WASTES” SECTION 13-128; PROVIDING FOR A

PENALTY; PROVIDING FOR REPEALING, SAVINGS,

AND SEVERABILITY CLAUSES; AND PROVIDING FOR

PUBLICATION AND AN EFFECTIVE DATE.

WHEREAS, the City of Denison, Texas (the “City”) is a Home Rule

Municipality acting under its Charter adopted by the electorate pursuant to Article

XI, Section 5 of the Texas Constitution and Chapter 9 of the Texas Local

Government Code; and

WHEREAS, the City Council of the City of Denison (the “City Council”)

adopted Chapter 13 of its Code of Ordinances, which governs buildings and

building regulations in the City; and

WHEREAS, the City Council wishes to update the version of code

regulating the minimum maintenance requirements for properties located within the

City to better align with the health and safety standards of the City.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL

OF THE CITY OF DENISON, TEXAS:

Section 1: Incorporation of Premises. The above and foregoing premises

are true and correct and are incorporated herein and made a part hereof for all

purposes.

Section 2: Amendment. Chapter 13, “Nuisances”, Article II, “Litter,

Trash, Weeds and Other Nuisances”, Section 13-19 “Penalty upon failure to

comply” is hereby amended to read entirely as follows:

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a. Any person or entity who violates or fails to comply with any provision or

requirement of this article, who continues to violate or fail to comply with same,

seven (7) days after notice is given and received as set forth in Section 13-15 shall

be deemed guilty of a misdemeanor and, upon conviction thereof, shall be fined in

a sum of no less than $150 and not to exceed $200 for the first conviction, a fine

of no less than $300 and not to exceed $450 for the second conviction, and a fine

of no less than $451 and not to exceed $2,000 for the third conviction and any

conviction thereafter.

b. In addition to imposing a criminal penalty the city may, in accordance with the

state law bring a civil action against a person violating a provision of this code.

The civil action may include, but is not limited to, a suit to recover a civil penalty

authorized by state law for each day or portion of a day during which the violation

is committed or continued.

c. The civil penalties provided for in this section, and any criminal penalties, are in

addition to any other enforcement remedies including injunctive relief that the city

may have under city ordinances and state law.

Section 3: Amendment. Chapter 13, “Nuisances”, Article IV, “Junked and

Inoperable Vehicles”, Section 13-75 “Penalty for violation of division.” is hereby

amended to read entirely as follows:

a. Any person or entity who violates a provision shall be fined in a sum of no less than

$150 and not to exceed $200 for the first conviction, a fine of no less than $300 and

not to exceed $450 for the second conviction, and a fine of no less than $451 and

not to exceed $500 for the third conviction and any conviction thereafter.

b. In addition to imposing a criminal penalty the city may, in accordance with the state

law bring a civil action against a person violating a provision of this code. The civil

action may include, but is not limited to, a suit to recover a civil penalty authorized

by state law for each day or portion of a day during which the violation is committed

or continued.




Section 4: Amendment. Chapter 13, “Nuisances”, Article V, “Noise”,

Section 13-103 “Penalty for violation of division.” is hereby created to read entirely

as follows:

a. Any person or entity who violates a provision of this Article shall be fined in a sum

of no less than $150 and not to exceed $200 for the first conviction, a fine of no

less than $300 and not to exceed $450 for the second conviction, and a fine of no

less than $451 and not to exceed $500 for the third conviction and any conviction

thereafter.



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or continued.




Section 5: Amendment. Chapter 13, “Nuisances”, Article VI, “Septic and

Similar Wastes”, Section 13-128 “Penalty for violation of division.” is hereby

amended to read entirely as follows:

a. Any person or entity, or anyone permitted to operate a waste transporter who

violates a provision of the Article, shall be fined in a sum of no less than $150 and

not to exceed $200 for the first conviction, a fine of no less than $300 and not to

exceed $450 for the second conviction, and a fine of no less than $451 and not to

exceed $2,000 for the third conviction and any conviction thereafter.





or continued.




Section 6: Amendment. Chapter 13, “Nuisances”, Article VII, “Premises

Maintenance”, Part A, “Minimum Maintenance Standards”, Section 13-144

(formerly Section 5-804) “Violation; penalty” is hereby amended to read entirely

as follows:

a. In addition to imposing a criminal penalty the city may, in accordance with the state




or continued.

b. Any person, firm, or corporation violating the provisions of this Part A, Article VII,

Chapter 13 shall be subject to a fine, upon conviction in the municipal court, in a

sum of no less than $150 and not to exceed $200 for the first conviction, a fine of

no less than $300 and not to exceed $450 for the second conviction, and a fine of

no less than $451 and not to exceed $2,000 for the third conviction and any

conviction thereafter. If the conviction relates to property zoned for nonresidential

purposes, fines for each tier of offense shall double but may not exceed $2,000.




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Section 7: Amendment. Chapter 13, “Nuisances”, Article VII, “Premises

Maintenance”, Part C, “Minimum Maintenance Standards: Interior Premises”,

Section 13-193 (formerly Section 5-853) “Violation; penalty” is hereby amended

to read entirely as follows:

a. In addition to imposing a criminal penalty the city may, in accordance with the

state law bring a civil action against a person violating a provision of this code.

The civil action may include, but is not limited to, a suit to recover a civil penalty

authorized by state law for each day or portion of a day during which the violation

is committed or continued.

b. Any person, firm, or corporation violating the provisions of this Part C, Article

VII, Chapter 13 shall be subject to a fine, upon conviction in the municipal court,

in a sum of no less than $150 and not to exceed $200 for the first conviction, a fine

of no less than $300 and not to exceed $450 for the second conviction, and a fine

of no less than $451 and not to exceed $2,000 for the third conviction and any

conviction thereafter. If the conviction relates to property zoned for nonresidential

purposes, fines for each offense tier shall double but may not exceed $2,000.




Section 8. Penalty. Any person, firm, corporation, or entity violating this

Ordinance be deemed guilty of a misdemeanor, and upon conviction thereof shall

be fined a sum not exceeding Two Thousand Dollars ($2,000.00). Each occurrence

in violation of this Ordinance shall constitute a separate and distinct offense. Each

day a violation of this Ordinance constitutes a separate offense. The penal

provisions imposed under this Ordinance shall not preclude the City of Denison

from filing suit to enjoin the violation. The City of Denison retains all legal rights

and remedies available to it pursuant to local, state, and federal law.

Section 9. Savings/Repealing Clause. All provisions of any ordinance in

conflict with this Ordinance are hereby repealed to the extent they are in conflict;

but such repeal shall not abate any pending prosecution for violation of the repealed

ordinance, nor shall the repeal prevent a prosecution from being commenced for

any violation if occurring prior to the repeal of the ordinance. Any remaining

portions of said ordinances shall remain in full force and effect.

Section 10. Severability. Should any section, subsection, sentence, clause

or phrase of this Ordinance be declared unconstitutional or invalid by a court of

competent jurisdiction, it is expressly provided that any and all remaining portions

of this Ordinance shall remain in full force and effect. Denison hereby declares that

it would have passed this Ordinance, and each section, subsection, sentence, clause

or phrase thereof irrespective of the fact that any one or more sections, subsections,

sentences clauses and phrases be declared unconstitutional or invalid.

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Section 11. Effective Date. This Ordinance shall become effective upon

its passage and publication as required by law.

DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY

OF DENISON, TEXAS, on this the ____ day of __________, 2020.

APPROVED:

___________________________

Janet Gott, Mayor

ATTEST:

___________________________



Staff Report

Agenda Item

Receive a report, hold a discussion and take action authorizing the City Manager to enter into a

Memorandum of Understanding (MOU) between the City of Denison and Denison Animal Welfare

Group (DAWG) for the design, construction and operation of an animal shelter to be constructed in

Denison.

Staff Contact

Kimberly L. Murray, CEcD, AICP

Community & Development Services Director

[email protected]

903-465-2720 ext. 2466

Summary

City shelter facility currently contracted to Morton Street Animal Hospital $144,000 annually

Animal adoptions are conducted by DAWG at former fire station located at 3307 Eisenhower

Pkwy

SGR conducted Animal Services study in 2018 and concluded a long-term facilities plan for

Animal Services in Denison needed to be undertaken

MOU outlines the goals, the roles and responsibilities of each party, and the expectations for

communications, financing, decision-making and operations/maintenance of the facility

Shelter would be constructed on 4.85 acres off West Morton Street currently owned by DAWG

and would be deeded over to the City as required for a City owned facility

Next step upon approval of MOU, includes issuing a RFP for architectural services and annual

operation and staffing budgets for the facility


Staff recommends approval authorizing the City Manager to enter into a Memorandum of

Understanding between the City and DAWG for construction of an animal shelter in Denison.

Recommended Motion

“I move to approve the Memorandum of Understanding dated March 16, 2020 between the City of

Denison and Denison Welfare Group and authorize staff to proceed with planning and design of an

animal shelter to be constructed in Denison.”


The City of Denison contracts animal shelter services to Morton Street Animal Hospital annually for

$144,000. Animal adoptions are conducted by DAWG at the city owned former Southside Fire Station

located at 3307 Eisenhower Pkwy. Over the last several years there has been some discussion on the

need for more shelter space in Denison. In 2019, the shelter took in almost 900 dogs and over 300 cats

with only eleven dog kennels and nine cat cages located outside under a common roof at the shelter.

The current facility is not suited for expansion.

In 2018, the City contracted with Strategic Government Resources (SGR) to complete a study of the

Animal Services division and animal shelter. The study concluded that current facilities were

inadequate to truly meet current and future animal service needs but had served the community well

over the years. A unique relationship with DAWG was responsible for a very successful release rate at

92%. The study voiced the need for another Officer, recommended moving forward with planning for

a new shelter, revising the current City Ordinance (Chapter 4) related to animal welfare including

tethering and dangerous dogs, and to look at proactive educational outreach.

It is important for the City take the lead in developing a plan of action for the long-term strategy of

animal care in Denison. Over the last several months, DAWG Representatives and City staff have

been meeting to discuss a possible partnership to address this issue.

This MOU agreement is built on the model of the City-Owned and Operated Field Operations and

Shelter Operations: Co-Location of 501c Humane Association (DAWG) Inside a City Structure as

outlined in the 2018 Animal Services Study.

Both parties agree a new facility is needed that combines the City shelter facilities and the adoption

portion of animal services (DAWG) within the City. In 2019, DAWG purchased the property off

Morton Street for $155,000 and rezoned the land to accommodate the use. DAWG has completed a

needs assessment and conceptual drawings and floor plans in 2018 from which to begin the design and

operational needs of the Facility.

The MOU outlines the goals, the roles and responsibilities of each party, and the expectations for

communications, financing, decision-making and operations/maintenance of the facility between the

City and DAWG. This facility would be constructed on 4.85 acres currently owned by DAWG on off

Morton Street. Land would be deeded over to the City and the facility would be owned and operated

by the City.

Pending approval of the MOU by the City Council, the next steps would be to prepare a Request for

Proposal (RFP) to hire an architectural firm qualified to design an animal shelter and develop an annual

operation and staffing budgets for the facility, and prepare contracts for deeding ownership and

operation of the facility.


The cost to construct the facility is between $3.5 - $4 million dollars. DAWG will raise $500,000 to

contribute towards construction. The City would finance and fund the remainder of the cost.


The Animal Advisory Committee met on March 5, 2020 and recommended moving the MOU forward

for the City Council’s consideration.

Alternatives

Table item to later date, make recommendations for revisions to the MOU, or do not approve the

MOU.

1 | P a g e

New Animal Shelter Facility

Memorandum of Understanding (MOU)

March 16, 2020

Between Denison Animal Welfare Group “DAWG” and the City of Denison, together the

“Parties”

This Memorandum of Understanding (MOU) sets forth the terms and conditions between

DAWG and City of Denison (the “City”) for the design, construction, and operation of a new

Animal Shelter Facility (the “Facility”) to be located on 4.85 acres off Morton Street. This MOU

is not an agreement to construct the Facility, nor a commitment of funding for the Facility, by

either Party.

Background

Currently, the City’s Animal Shelter is operated by a contracted party. DAWG operates a small

shelter facility, leased from the City, to find homes for the animals. The Animal Services Study

completed in May 2018 for the City determined that the current facilities, equipment, and

manpower allocation to this important municipal service is not sustainable into the future. In

order to move forward and effectively meet rising expectations, there should be a sense of

urgency to improve and enhance capabilities in this service area.

This agreement is built on the model of the City-Owned and Operated Field Operations and

Shelter Operations: Co-Location of 501c Humane Association (DAWG) Inside City Structure

discussed in the Animal Services Study. Both parties agree a new facility is needed that

combines the City Shelter facilities and the shelter and adoption portion of animal services

within the City (the “Facility”). In 2019, DAWG purchased the property off Morton Street for

$155,000 and rezoned the land to accommodate the use. DAWG has completed a needs

assessment and conceptual drawings and floor plans in 2018 from which to begin the design and

operational needs of the Facility.

DAWG has approached the City to ask for participation. The estimated cost of the Facility is

$3.5 +/- million including site work. To date, DAWG has invested approximately $350,000

toward this initiative. The City and DAWG have met over the last three months to discuss a

potential agreement which is outlined in this MOU.

Goals 1. Both parties wish to continue the relationship that has developed over the years.

2. DAWG has purchased a piece of property to house both the City Animal Shelter and a

shelter/adoption facility, and wishes to work with the City to design, construct, and help

operate the facility.

3. DAWG wishes to continue to offer a humane and safe environment for homeless pets and

the citizens who come to adopt them.

2 | P a g e

4. The City wishes to provide an adequate facility to meet the needs of the community for

animal services for the future and to support the success DAWG has had in influencing

Denison’s high animal release rate.

Purpose

This MOU generally outlines the goals, roles and responsibilities of each party, and the

expectations for communications, financing, decision-making and operations/maintenance of the

facility.

The above goals will be accomplished by the following assumptions and activities:

DAWG wishes to operate the adoption portion of the Facility. To that end, DAWG has

developed a plan of action to build an infrastructure that would support the adoption

operations.

DAWG wishes to continue a positive relationship with the City’s Animal Service

Officers.

DAWG understands that in order for this project to include public funding, the City must

own the Facility. Thus, in another agreement, DAWG will deed the land to the City.

The City must own the land and the Facility to be able to issue bonds for the construction

costs.

The City must oversee the design and engineering of the Facility and approve the plans

which may vary from the work DAWG completed in 2018.

The City intends to oversee the entire Facility, including operations and maintenance.

However, the City will work collaboratively with DAWG on the adoption functions and

intends to only operate the City Shelter portion of the Facility.

A contract will be executed outlining the responsibility of the Parties and total oversight,

including over animal welfare.

Parties will discuss any areas of concern and create rules of operating procedures for

smooth operations of the entire facility to create a team environment that supports the

DAWG mission and the Shelter procedures and regulations.

Next Steps of Parties

1. Approval of the MOU by DAWG and the City Council (March 16, 2020 City Council

Meeting).

2. Prepare a Request for Proposal (RFP) to hire an architectural firm qualified to design

animal shelter facilities to prepare final designs and operational and staffing budgets for

the Facility.

3. Organize a Steering Committee to provide input and feedback during design process.

4. Launch capital campaign (DAWG).

5. Develop an annual operations and capital budget, and operation and maintenance

procedures.

6. Prepare final contracts including deeding the land to the City.

3 | P a g e

Funding

While this MOU is not a commitment of funds, the following understanding has been reached:

DAWG will begin a capital campaign to raise approximately $500,000 to contribute

towards the construction of the Facility.

The City will finance and fund the remainder of the cost.

The allocation of approximately $144,000 of the City’s general funds to the current

facility will be reallocated toward the operations of the new Facility.

DAWG is committing their annual fundraising funds for their normal operating expenses

toward their operations of the adoption portion of the Facility.

The City may cover any deficit.

Duration

This MOU is at-will and may be modified by mutual consent of DAWG and the City Manager.

This MOU shall become effective upon signature by the Parties and will remain in effect until

modified or terminated by any one of the Parties by mutual consent. In the absence of mutual

agreement by the Parties this MOU shall end with the transition to formal contracts.

Contact Information

Denison Animal Welfare Group (DAWG)

Stephanie Phillips, President

3307 S Eisenhower Pkwy, Denison, TX 75020

[email protected]

(903) 361-4211

________________________ Date: _________________

Stephanie Phillips, DAWG, President

City of Denison

Judson J. Rex, City Manager

300 West Main St.

Denison, TX 75021

[email protected]

________________________ Date: _________________

Judson J. Rex, City Manager


Staff Report

Agenda Item

Receive a report, hold a discussion and take action on the 2018-2019 Comprehensive Annual Financial

Report (CAFR) presented by BrooksWatson & Co.

Staff Contact

Laurie Alsabbagh

Assistant Finance Director

[email protected]

903-465-2720 EXT 2492

Summary

The City of Denison has a contract with BrooksWatson & Co for the annual audit.

BrooksWatson & Co have issued an unmodified (“clean”) opinion on the City of Denison’s

financial statements for the year ended September 30, 2019. The independent auditor’s report

is located at the beginning of the financial section of the CAFR.

This audit is complete and the CAFR is ready for acceptance.


Staff recommends Council to receive the 2018-2019 Comprehensive Annual Financial Report as

presented by BrooksWatson & Co.

Recommended Motion

“I move that we accept the 2018-2019 Comprehensive Annual Financial Report as presented by

BrooksWatson & Co.”


Municipalities are required to have an annual audit of all funds. BrooksWatson & Co. has the contract

to perform those services for the City of Denison. In conjunction with the City of Denison Accounting

Division, a Comprehensive Annual Financial Report is prepared which provides a far greater amount

of information for the public to utilize. This report allows us to apply for the Government Finance

Officers Association Award of Excellence in Financial Reporting. We have received this award for the

last eight years and are hopeful we will receive the award this year as well.


The total cost of the auditing services is approximately $35,000.


None

Alternatives

1. Denison 2019 CAFR

2. Auditors Presentation 3-16-20

COMPREHENSIVE

ANNUAL FINANCIAL REPORT

of the

City of Denison, Texas

For the Year Ended

September 30, 2019

Prepared by

Jud Rex

City Manager

Renee’ Waggoner

Director of Finance &

Administrative Services

Laurie Alsabbagh

Assis tant Finance Director

City of Denison, TexasTABLE OF CONTENTS

September 30, 2019

INTRODUCTORY SECTION Page

Letter of Transmittal i

GFOA Certificate of Achievement vi

Organizational Chart vii

List of Principal Officials viii

FINANCIAL SECTION

Independent Auditor's Report on Financial Statements 1

Management's Discussion and Analysis 5

Basic Financial Statements:

Government-wide Financial Statements

Statement of Net Position 18

Statement of Activities 20

Fund Financial Statements:

Balance Sheet - Governmental Funds 22

25

26

27

Statement of Net Position - Proprietary Funds 28

Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds 29

Statement of Cash Flows - Proprietary Funds 30

Statement of Fiduciary Net Position - Fiduciary Fund 32

Statement of Changes in Assets and Liabilities - Fiduciary Fund 33

Notes to the Financial Statements 35

Required Supplementary Information:

Schedule of Revenues, Expenditures, and Changes in Fund Balances -

Budget (GAAP Basis) and Actual - General Fund 84

Schedule of Changes in Net Pension Liability and Related Ratios -

Texas Municipal Retirement System 86

Schedule of Employer Contributions to Pension Plan -

Texas Municipal Retirement System 88

Schedule of Changes in Net Pension Liability and Related Ratios -

Denison Firemen's Relief and Retirement Fund 90

Schedule of Employer Contributions to Pension Plan -

Denison Firemen's Relief and Retirement Fund 92

Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position

Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental

Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances

of Governmental Funds to the Statement of Activities

Other Supplementary Information:

Combining and Individual Fund Financial Statements and Schedules:

Combining Balance Sheet - Nonmajor Governmental Funds 96

102

Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual

General Bond Fund 108

Tax Increment Reinvesting Zone 109

General Interest and Sinking 110

Cemetery Pre-pay O&C 111

Street Improvement 112

Denison Public Library 113

Federal Forfeitures 114

Fire Equipment 115

Parks & Recreation 116

Law Enforcement Forfeitures 117

Special Events 118

Municipal Court Security 119

Municipal Court Technology 120

Fire Training 121

Homeland Security Grant 122

Vehicle Seizure 123

Canine 124

Police Training 125

Combining and Individual Discretely Presented Component Units

Combining Schedule of Net Position – Discretely Presented Component Units 127

Combining Schedule of Activities – Discretely Presented Component Units 128

STATISTICAL SECTION

Financial Trends:

Net Position by Component 132

Changes in Net Position 134

Tax Revenues by Source 139

Fund Balances of Governmental Funds 140

Changes in Fund Balances of Governmental Funds 142

Revenue Capacity:

Assessed Value and Estimated Actual Value of Taxable Property 144

Direct and Overlapping Property Tax Rates 147

Principal Property Taxpayers 148

Property Tax Levies and Collections 151

Combining Statement of Revenues, Expenditures and Changes in Fund Balances -

Nonmajor Governmental Funds

Debt Capacity:

Ratios of Outstanding Debt by Type 152

Ratios of General Bonded Debt Outstanding 154

Direct and Overlapping Governmental Activities Debt 155

Legal Debt Margin Information 156

Pledged-Revenue Coverage 158

Demographic and Economic Information:

Demographic and Economic Statistics 159

Principal Employers 160

Operating Information:

Full-Time Equivalent City Government Employees by Function 162

Operating Indicators by Function 164

Capital Asset Statistics by Function 166

CONTINUING DISCLOSURE SECTION (UNAUDITED)

Valuation, Exemptions and General Obligation Debt 171

Taxable Assessed Valuations by Category 172

Valuation and General Obligation Debt History 174

Tax Rate Levy and Collection History 175

Interest and Sinking Fund Budget Projection 176

Municipal Sales Tax History 177

Cash and Investments for Primary Government 178

INTRODUCTORY SECTION

i

City of Denison300 West Main Street | PO Box 347Denison, TX 75021-0347(903) 465-2720 | Fax (903) 464-4499

March 11, 2020

Honorable Mayor and City Council

City of Denison

Denison, Texas

Dear Mayor and Council Members:

The Comprehensive Annual Financial Report (“CAFR”) of the City of Denison, Texas for the year ended

September 30, 2019, is submitted herewith.

Management assumes full responsibility for the completeness and reliability of the information contained

in this report, based upon a comprehensive framework of internal control that is established for this

purpose. Since the cost of internal control should not exceed anticipated benefits, the objective is to

provide reasonable, rather than absolute, assurance that the financial statements are free of any material

misstatements.

BrooksWatson & Co. have issued an unmodified (“clean”) opinion on the City of Denison’s financial

statements for the year ended September 30, 2019. The independent auditor’s report is located in the

beginning of the financial section of the CAFR.

This letter of transmittal is designed to complement Management’s Discussion and Analysis (“MD&A”)

and should be read in conjunction with it. The City’s MD&A can be found immediately following the

independent auditors’ report and provides a narrative introduction, overview and analysis of the basic

financial statements.

GENERAL INFORMATION – CITY OF DENISON

The City of Denison is located in Grayson County just four miles from the Red River and Texas/ Oklahoma

border. The City was founded on September 23, 1872 and incorporated on March 7, 1873.

The City Council is comprised of a Mayor and six council members and is responsible for enacting

ordinances, resolutions, and regulations governing the City, as well as appointing the members of various

statutory and advisory boards, the City Manager, City Attorney, and a Municipal Judge. The City

Manager is the chief administrative officer of the government and is responsible for the enforcement of

laws and ordinances, the appointment and supervision of the executive directors, and heads of

departments, and the performance of functions within the municipal organization.

ii

ECONOMIC CONDITIONS AND OUTLOOK

Grayson County is the 34th largest of 254 counties in Texas with a population of just over 133,991. Sherman

is the county seat and largest city of Grayson county while Denison, which meets the northern border is

the next largest. Denison is home to approximately 25,118 residents in an area covering more than 29

square miles. Major industry for the area includes health care, insurance claim processing, farming,

livestock, food processing and distribution, higher education, and manufacturing.

The Sherman-Denison Metropolitan Statistical Area has been named on Forbes magazine’s list of the 100

Best Small Places for Business and Careers in the United States. Given Denison’s pro-business attitude,

the City continued to move forward in a positive direction during 2019. Denison is clearly focused on the

quality of life for all of its residents.

Business Highlights:

HeyDay Entertainment set to open in Gateway Village in November 2019.

Culver’s of Denison broke ground on Gateway Boulevard and is expected to open in late 2019.

Domino’s was the first chain restaurant to be opened in historic downtown Denison in Summer

2019.

ARStrat, LLC, an industry leading collection and bad debt resolution provider for the healthcare

industry will hold a grand opening in Fall 2019.

Panda Express opened in Summer 2019.

TRYincubator to offer downtown dining variety-coming in late 2019.

A new four-story, state of the art medical office building coming to Denison in Gateway Village.

Construction is scheduled to start in 2020.

Texoma Medical Center completed construction of a new four-story patient tower with a

neonatal intensive care unit and the ER on the first floor. Construction continues on the fifth and

sixth floors throughout 2019.

Subway set to open in the downtown area in 2020.

Urban Air Trampoline & Adventure Park will be coming to the Shops at Gateway Village in Fall

2019, with an anticipated opening in 2020.

Outdoor Powersports to move its Sherman location to Denison. The new location of the store is

expected to be located at the intersection of U.S. Highway 75 and Crawford Street and

construction is expected to begin in early 2020.

Developers of the former Hotel Denison have begun working on cleaning up the building and are

planning on announcing their plans at the DDA Economic Summit in January 2020.

Other Highlights:

Automated Residential Garbage Collection Program began on April 1, 2019. To prepare residents

for the new service, the City developed and implemented a detailed marketing and

communications plan. During the 2019 Texas Municipal League Annual Conference and

Exhibition in San Antonio, the City of Denison received the 2019 Municipal Excellence Award in

communication programs for cities under 25,000 in population for the communications outreach

of its new trash service.

iii

Summer 2019 was the City of Denison’s pilot year for a summer youth day camp for ages 5-12.

Denison DREAM camp was made possible through a partnership between the Denison Parks and

Recreation Department, Denison Public Library, and Denison Independent School District.

DREAM stands for what we hope children will take away from our program: Discovery,

Recreation, Education, Adventure, and Memories. Campers explore new activities, learn new

sports, develop friendships and learn more about their community.

The new City of Denison website went live on July 1, 2019.

Denison Fire Rescue has 10 members in paramedic school and the City entered into an agreement

with LifeNet to staff 2 MICU ambulances in an effort to help DFR respond to medical emergencies

while the 10 staff members are in paramedic school. In Fall of 2019 Grayson College created a

special Paramedic Class to fast track Denison Fire Rescue new hires through a condensed

paramedic course.

City to acquire Heritage Park in Downtown Denison from Downtown Denison Incorporated in

Fall of 2019. Acquisition of the park will allow the City to make significant improvements to

Heritage Park as part of the City’s D3: Designing Downtown Denison Project.

On October 9, 2019 a fire destroyed multiple buildings on Main Street in historic Downtown

Denison. The City created the #DenisonForward initiative that will serve as inspiration for the

rebuilding effort.

We are in our sixth year of our in-house demolition program. 18 residential demolitions occurred

in 2019.

City Hall and the Denison Arts Council continue their collaboration of providing art exhibit

opportunities within public space at the new City Hall.

PawPaw Wastewater Treatment completed installation of a new UV System. This system replaces

the previous equipment in order to provide the disinfection required by State and Federal laws

A total of 194 new housing permits were issued during 2019.

Hyde Park Apartments will be opening in 2020 and will provide 128 units.

MAJOR INITIATIVES

D3: Designing Downtown Denison-an initiative to redesign Main Street started with conceptual

plans in 2016. The project is funded through the City’s Tax Increment Reinvestment Zone which

was created in 2016. Phase One design is complete, and construction will begin in 2020. Phase

One construction is expected to take around 18 months to complete.

Katy Trail System went to bid in September 2019 and was awarded in November. A

groundbreaking is expected to take place in December 2019 with construction to begin in early

2020. This trail will follow a portion of the MKT railroad right of way to create a 12-foot-wide bike

and pedestrian trail throughout the City.

Denison’s affordable housing program continues to provide affordable homes within the City with

nearly 80 homes sold. The City has now given away all of the available lots in the program and

plans to meet with home builders to modify the program to reflect current housing market

conditions.

Denison entered into an agreement with Enterprise Fleet Program and purchased 35 vehicles in

2019. Staff met in Spring 2019 to discuss Year 2 of the program.

In 2019 the Micro Paving program completed 7 lane miles with the compilation of streets for the

Fall 2019 resurfacing program to open for bid in September.

iv

A Rental Registration and Inspection Program was proposed and presented at City Hall in June

2019. As a result, a stakeholder’s group of staff members, landlords and tenants was formed to

revise the proposed program. Updates to the program will be presented in FY2020.

West End Fire Station Remodel to begin in late 2019 and be completed in 2020.

The City continues to work with TPJ properties on the Gateway Village development for US 75/691.

A new mixed retail and restaurant space is in development with Denison Planning and Zoning

Commission approving initial plans in January of 2019.

FINANCIAL INFORMATION

Accounting Procedures and Budgetary Controls

The City’s accounting records for general government are maintained on a modified accrual basis, with

revenues being recorded when available and measurable, and expenditures being recorded when the

services or goods are received and the liabilities are incurred. Accounting records for the City’s water and

sewer utility and other proprietary activities are maintained on the accrual basis.

The budgetary process begins each year with the preparation of both current and proposed year revenue

estimates by the City’s financial management staff, and expenditure estimates by each City division.

Budgets are reviewed by the Director of Finance and Administrative Services. The City Manager makes

final decisions and submits a recommended budget to the City Council.

As part of each year’s budget development process, divisions are required to update expenditure estimates

for the current fiscal year. These estimates are reviewed by the Director of Finance and Administrative

Services, the City Manager, and the City Council concurrent with review of the proposed budget. The

level of control (the level at which expenditures may not exceed budget) is the division level. The City

Council approves all budget amendments.

General Governmental Functions

Tax Rates

All eligible property within the City is subject to assessment, levy, and collection by the City of a

continuing, direct ad valorem tax sufficient to provide for the payment of principal and interest on

outstanding bonds within the limits prescribed by law, and the payment of maintenance and operation

costs as approved by the City Council. The tax rates adopted by the City Council are shown below:

Budget Year Tax Rate Taxable Value Collections

2014-2015

2015-2016

2016-2017

2017-2018

2018-2019

$0.653377

$0.653377

$0.643377

$0.633377

$0.633377

1,107,802,263

1,181,434,177

1,325,736,786

1,429,444,394

1,573,456,675

6,930,034

7,383,839

8,183,283

8,552,059

9,354,694

v

OTHER INFORMATION

Awards

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a

Certificate of Achievement for Excellence in Financial Reporting to City of Denison for its comprehensive

annual financial report for the fiscal year ended September 30, 2018. This was the eighth consecutive year

that the government has achieved this prestigious award. In order to be awarded a Certificate of

Achievement, a government must publish an easily readable and efficiently organized comprehensive

annual financial report. This report must satisfy both generally accepted accounting principles and

applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current

comprehensive annual financial report continues to meet the Certificate of Achievement Program’s

requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

Acknowledgements

Many persons are responsible for the preparation of this report, and for the maintenance of records upon

which it is based. Appreciation is expressed to the City employees throughout the organization, especially

those employees of the Accounting Division who were instrumental in the successful completion of this

report.

Our appreciation is also extended to the Mayor and members of the City Council for providing the

resources necessary to maintain the integrity of the City’s financial affairs.

Respectfully submitted,

Judson J. Rex

CITY MANAGER

Renee’ Waggoner

DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES

City of Denison 2018/2019 Budget

Organizational Chart

Citizens of Denison

Mayor & City Council

City Attorney City Manager

Fire & Rescue

Emergency Management

Fire Rescue

Police

Communications

Police

Public Works

Demolition

Fleet & Facility Services

Refuse & Recycling

Stormwater

Streets

Water & Wastewater Utility

Community and Development Services

Building Permitting & Inspections

Code Compliance & Animal Services

Marketing & Tourism

Parks, Recreation & Cemeteries

Planning & Zoning

Public Library

Finance and Administrative Services

Accounting

Employee Services

Information Technology

Municipal Court

Office of the City Marshal

Utilities Customer Service

City Clerk

Community Engagement

Main Street

Municipal Judge

vii

Janet Gott Mayor

Teresa Adams Council Member Place 1/Mayor Pro Tem

Obie Greenleaf Council Member Place 2

J.C. Doty Council Member Place 3

Robert Crawley Council Member Place 4

Kris Spiegel Council Member Place 5

Brian Hander Council Member Place 6

Judson Rex City Manager

Renee' Waggoner Director of Finance & Administrative Services

Michael Gudgel Police Chief

Gregg Loyd Fire Chief

Christine Wallentine City Clerk

Jimmy Moon Public Works Director

City Council

City of Denison, TexasELECTED AND APPOINTED OFFICIALS

Appointed Officials

September 30, 2019

viii

FINANCIAL SECTION

1

14950 Heathrow Forest Pkwy | Suite 530 | Houston, TX 77032 | Tel: 281.907.8788 | Fax: 888.875.0587 | www.BrooksWatsonCPA.com

INDEPENDENT AUDITOR’S REPORT

To the Honorable Mayor and

Members of the City Council

City of Denison, Texas:

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business -

type activities, the discretely presented component units, each major fund, and the aggregate remaining

fund information of the City of Denison, Texas (the “City”) as of and for the year ended September 30,

2019, and the related notes to the financial statements, which collectively comprise the City’s basic

financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

The City’s management is responsible for the preparation and fair presentation of these financial

statements in accordance with accounting principles generally accepted in the United States of America;

this includes the design, implementation, and maintenance of internal control relevant to the preparation

and fair presentation of financial statements that are free from material misstatement, whether due to

fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We did not

audit the financial statements of the Denison Business and Industrial Corporation, component unit of the

City, which represents 76%, 73%, and 96%, respectively, of the assets, net position, and revenues of the

aggregate discretely presented component units. Those financial statements were audited by other

auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to the

amounts included for the Denison Business and Industrial Corporation, is based solely on the report of

the other auditors. We conducted our audit in accordance with auditing standards generally accepted in

the United States of America. Those standards require that we plan and perform the audit to obtain

reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in

the financial statements. The procedures selected depend on the auditor’s judgment, including the

assessment of the risks of material misstatement of the financial statements, whether due to fraud or

error. In making those risk assessments, the auditor considers internal control relevant to the entity’s

preparation and fair presentation of the financial statements in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness

of the entity’s internal control. Accordingly, we express no such opinion.

2

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness

of significant accounting estimates made by management, as well as evaluating the overall presentation

of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the

respective financial position of the governmental activities, the business-type activities, the discretely

presented component units, each major fund, and the aggregate remaining fund information of the City,

as of September 30, 2019, and the respective changes in financial position and, where applicable, cash

flows thereof for the year then ended in accordance with accounting principles generally accepted in the

United States of America.

Emphasis of Matter

Accounting Errors

As discussed in Note V.I to the financial statements, the City restated the beginning net position, and the

resective fund balances, within government activities, business-type activities, the general fund, general

bond fund, nonmajor governmental funds and the utility fund to properly reflect corrections of

accounting errors in the prior year. Our opinion is not modified with respect to this matter.

Component Unit Yearend

As discussed in Note I.B to the financial statements, the discretely presented component unit, Denison

Community Investment Corporation, maintains financial records ending December 31, 2018.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s

discussion, general fund budgetary comparison information, schedule of changes in net pension

liabilities and related ratios, and schedule of employer contributions to the pension plans, be presented

to supplement the basic financial statements. Such information, although not a part of the basic financial

statements, is required by the Governmental Accounting Standards Board who considers it to be an

essential part of financial reporting for placing the basic financial statements in an appropri ate

operational, economic, or historical context. We have applied certain limited procedures to 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

information and comparing the information for consistency with management’s responses to our

inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic

3

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.

Other Information

Our audit was conducted for the purpose of forming an opinion on the financial statements that

collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund

financial statements and budgetary comparison information are presented for purposes of additional

analysis and are not a required part of the basic financial statements.

This accompanying supplementary information is the responsibility of management and was derived

from and relates directly to the underlying accounting and other records used to prepare the basic

financial statements. Such information has been subjected to the auditing procedures applied in the audit

of the basic financial statements and certain additional procedures, including comparing and re conciling

such information directly to the 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 accompanying supplementary information is fairly stated, in all material respects, in relation to the

basic financial statements as a whole.

The introductory, statistical sections, and continuing disclosure section have not been subjected to the

auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not

express an opinion or provide any assurance on it.

BrooksWatson & Co., PLLC

Certified Public Accountants

Houston, Texas

March 11, 2020

City of Denison, TexasMANAGEMENT’S DISCUSSION AND ANALYSIS, Continued

September 30, 2019

5

The purpose of the Management’s Discussion and Analysis (the “MD&A”) is to give the readers an

objective and easily readable analysis of the City of Denison’s financial activities for the year ending

September 30, 2019. The analysis is based on currently known facts, decisions, or economic conditions.

It presents short and long-term analysis of the City’s activities, compares current-year results with

those of the prior year, and discusses the positive and negative aspects of that comparison. GASB

Statement No. 34 establishes the content of the minimum requirements for the MD&A. Please read the

MD&A in conjunction with the City’s financial statements, which follow this section.

The annual financial report is presented as compliant with the financial reporting model in effect

pursuant to GASB Statement No. 34. This financial reporting model requires governments to present

certain basic financial statements as well as an MD&A and certain other Required Supplementary

Information (RSI). The basic financial statements include (1) government-wide financial statements, (2)

individual fund financial statements, and (3) notes to the financial statements.

Financial Highlights

The City's total combined net position was $60,330,053 at September 30, 2019. Of this, $2,683,141

(unrestricted net position) may be used to meet the City’s ongoing obligations to its citizens and

creditors.

At the close of the current fiscal year, the City’s governmental funds reported combined fund

balances of $9,707,270, a decrease of $1,238,570. This decrease is primarily due to significant

capital expenditures during the current year.

As of the end of the year, the unassigned fund balance of the general fund was $6,251,513 or

21% of total general fund expenditures.

The City had an overall increase in net position of $190,914.

The City’s net pension liabilities totaled $14,685,575 as of year end.

Overview of Financial Statements

The discussion and analysis provided here are intended to serve as an introduction to the City’s basic

financial statements. The City’s basic financial statements consist of three components: 1)

government-wide financial statements, 2) fund financial statements, and 3) the notes to financial

statements. This report also includes supplementary information intended to furnish additional

detail to support the basic financial statements themselves.


September 30, 2019

6

Government-Wide Statements

The government-wide financial statements are designed to provide readers with a broad overview of the

City’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the City’s assets and liabilities. The difference

between the two is reported as net position. Over time, increases or decreases in net position may serve

as a useful indicator of whether the financial position of the City is improving or deteriorating. Other

non-financial factors, such as the City’s property tax base and the condition of the City’s infrastructure,

need to be considered in order to assess the overall health of the City.

The statement of activities presents information showing how the City’s net position changed during the

most recent fiscal year. All changes in net position are reported as soon as the underlying event giving

rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses

are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected

taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City that are principally

supported by taxes and intergovernmental revenues (governmental activities) from other functions that

are intended to recover all or a significant portion of their costs through user fees and charges (business-

type activities). The governmental activities of the City include general government, public safety, public

services, culture and recreation, and public works. The business-type activities of the City include

water and sewer operations.

The government-wide financial statements include not only the City itself (known as the primary

government), but also the legally separate Denison Business and Industrial Corporation, Denison

Community Investment Corporation, and the Denison Public Library Endowment Fund, for which the

City is financially accountable. Financial information for this component unit is reported separately

from the financial information presented for the primary government itself.

FUND FINANCIAL STATEMENTS

Funds may be considered as operating companies of the parent corporation, which is the City of

Denison. They are usually segregated for specific activities or objectives. The City of Denison uses

fund accounting to ensure and demonstrate compliance with finance-related legal reporting

requirements. The categories of City funds are governmental, proprietary, and fiduciary.

Governmental Funds

Governmental funds are used to account for essentially the same functions reported as governmental

activities in the government-wide financial statements. However, unlike the government-wide

financial statements, governmental fund financial statements focus on near-term inflows and outflows of


September 30, 2019

7

spendable resources, as well as on balances of spendable resources available at the end of the year. Such

information may be useful in evaluating the City’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial

statements, it is useful to compare the information presented for governmental funds with similar

information presented for governmental activities in the government-wide financial statements. By

doing so, readers may better understand the long-term impact of the government’s near-term financing

decisions. Both the governmental fund balance sheet and the governmental fund statement of

revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this

comparison between governmental funds and governmental activities.

The City of Denison maintains twenty-three individual governmental funds. Information is presented

separately in the governmental fund balance sheet and in the governmental fund statement of

revenues, expenditures, and changes in fund balances for the general fund, which is considered to be a

major fund, and the aggregate nonmajor funds.

The City of Denison adopts an annual appropriated budget for its general, general bonds, debt service,

special revenue, and utility funds. Budgetary comparison schedules have been provided to

demonstrate compliance with these budgets.

Proprietary Funds

The City maintains one type of proprietary fund. Enterprise funds are used to report the same

functions presented as business-type activities in the government-wide financial statements. The City

uses an enterprise fund to account for its water distribution, wastewater collection/treatment, and

water construction operations. The basic proprietary fund financial statements can be found in the

basic financial statements of this report.

Fiduciary Funds

Fiduciary funds are used to account for resources held for the benefit of parties outside of the

government. Fiduciary funds are not reported in the government-wide financial statements because the

resources of those funds are not available to support the City’s own programs. The accounting used for

fiduciary funds is much like that used for proprietary funds.

The City maintains two fiduciary fund. The police seizure fund is an agency fund that accounts for

assets seized by the police department in which the City holds in a custodial capacity. The sister city

fund is an agency fund that accounts for assets donated to a local nonprofit, which the City holds in a

custodial capacity.


September 30, 2019

8

Notes to Financial Statements

The notes to the financial statements provide additional information that is essential to a full

understanding of the data provided in the government-wide and fund financial statements. The notes

are the last section of the basic financial statements.

Other Information

In addition to the basic financial statements, MD&A, and accompanying notes, this report also presents

certain Required Supplementary Information (RSI). The RSI that GASB Statement No. 34 requires

includes a budgetary comparison schedule for the general fund and schedule of funding progress for

Texas Municipal Retirement System and the Firemen's Relief and Retirement fund. RSI can be found

after the basic financial statements.

The combining statements referred to earlier in connection with nonmajor governmental funds and

discretely presented component units are presented immediately following the required

supplementary information.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

As noted previously, net position may serve over time as a useful indicator of the City’s financial

position. For the City of Denison, assets exceed liabilities by $60,330,053 as of September 30, 2019, in

the primary government.

The largest portion of the City’s net position, $56,001,514, reflects its investments in capital assets (e.g.,

land, city hall, police station, streets, and drainage systems, as well as the public works facilities), less

any debt used to acquire those assets that are still outstanding. The City uses these capital assets to

provide services to citizens; consequently, these assets are not available for future spending. Although

the City’s investment in its capital assets is reported net of related debt, it should be noted that the

resources needed to repay this debt must be provided from other sources, since the assets themselves

cannot be used to liquidate these liabilities. Long-term assets for both governmental and business-type

activities increased over the prior year primarily as a result of increased investment in ongoing city

projects.

The most significant change in governmental activities resulted in a significant decrease in cash on

hand. The majority of the bond proceeds received in the prior periods were spent in the current year,

which resulted in a large decrease in current assets when compared to the prior year.

Business-type activities experienced an increase in long-term debt due to the issuance of $5,255,000 of

certificates of obligation.

Deferred outflow of resources experienced an increase due to the market fluctuation and changes in

actuarial assumptions impacting the pension.


September 30, 2019

9

Statement of Net Position:

The following table reflects the condensed Statement of Net Position:

Current and

other assets $ 12,422,046 $ 17,199,445 $ 29,621,491 $ 15,272,496 $ 13,332,052 $ 28,604,548

Long-term assets 57,359,754 47,228,294 104,588,048 57,901,426 44,913,021 102,814,447

Total Assets 69,781,800 64,427,739 134,209,539 73,173,922 58,245,073 131,418,995

4,705,911 1,068,250 5,774,161 1,358,943 333,640 1,692,583

Other liabilities 5,287,175 3,517,229 8,804,404 6,517,610 3,431,255 9,948,865

Long-term liabilities 32,354,096 37,483,800 69,837,896 27,119,302 32,691,503 59,810,805

Total Liabilities 37,641,271 41,001,029 78,642,300 33,636,912 36,122,758 69,759,670

955,370 55,977 1,011,347 2,677,593 535,176 3,212,769

Net Position:

Net investment in

capital assets 37,535,804 18,465,710 56,001,514 36,540,463 18,388,440 54,928,903

Restricted 1,645,398 - 1,645,398 773,847 - 773,847

Unrestricted (3,290,132) 5,973,273 2,683,141 904,050 3,532,339 4,436,389

Total Net Position $ 35,891,070 $ 24,438,983 $ 60,330,053 $ 38,218,360 $ 21,920,779 $ 60,139,139

Deferred Outflows of

Resources

Deferred Inflows of

Resources

Governmental

2019 2018

Governmental Business-Type

Activities Activities Total

Business-Type

Activities TotalActivities


September 30, 2019

10

Statement of Activities:

The following table provides a summary of the City’s changes in net position:

Revenues

Program revenues:

Charges for services $ 10,347,686 $ 12,783,394 $ 23,131,080 $ 10,437,774 $ 12,555,348 $ 22,993,122

Operating grants and contributions 449,370 - 449,370 819,419 - 819,419

General revenues:

Property taxes 10,049,035 - 10,049,035 8,981,119 - 8,981,119

Sales taxes 5,710,960 - 5,710,960 5,591,271 - 5,591,271

Franchise and local taxes 1,935,460 - 1,935,460 1,936,874 - 1,936,874

Investment income 216,726 285,187 501,913 163,508 108,868 272,376

Other revenues 624,662 - 624,662 616,222 - 616,222

Total Revenues 29,333,899 13,068,581 42,402,480 28,546,187 12,664,216 41,210,403

Expenses

General government 5,674,881 - 5,674,881 5,592,849 - 5,592,849

Public safety 12,903,441 - 12,903,441 11,341,795 - 11,341,795

Community services 5,776,713 - 5,776,713 4,055,461 - 4,055,461

Public works 6,804,281 - 6,804,281 6,324,708 - 6,324,708

Interest and fiscal charges 506,897 1,207,345 1,714,242 538,988 1,027,169 1,566,157

Water & sewer - 9,338,008 9,338,008 - 8,744,362 8,744,362

Total Expenses 31,666,213 10,545,353 42,211,566 27,853,801 9,771,531 37,625,332

Change in Net Position

Before Transfers (2,332,314) 2,523,228 190,914 692,386 2,892,685 3,585,071

Transfers 5,024 (5,024) - 1,539,284 (1,539,284) -

Total 5,024 (5,024) - 1,539,284 (1,539,284) -

Change in Net Position (2,327,290) 2,518,204 190,914 2,231,670 1,353,401 3,585,071

Beginning Net Position 38,218,360 21,920,779 60,139,139 35,986,690 20,567,378 56,554,068

Ending Net Position $ 35,891,070 $ 24,438,983 $ 60,330,053 $ 38,218,360 $ 21,920,779 $ 60,139,139

Primary

For the Year Ended September 30, 2019

Business-Type

Government


Total

Governmental

Activities

Governmental

Activities Activities

Total

Primary

Government Activities

Business-Type


September 30, 2019

11

Graphic presentations of selected data from the summary tables are displayed below to assist in the

analysis of the City’s activities.

For the year ended September 30, 2019, revenues from governmental activities totaled $29,333,899.

Charges for services, property tax, and sales tax are the City’s largest revenue sources. Grants and

contributions decreased by $370,049 or 45% due primarily to nonrecurring intergovernmental funds

received in the previous year. Property taxes increased by $1,067,916 or 12% due to an increase in

assessed values. Sales taxes increased $119,689 or 2% due to continued development and economic

growth in the area. Investment income increased $53,218 or 33% due to higher balances held in interest

bearing accounts during the year. All other revenues remained relatively stable when compared to the

previous year.


September 30, 2019

12

This graph shows the governmental function expenses of the City:

For the year ended September 30, 2019, expenses for governmental activities totaled $31,666,213. This

represents an increase of $3,812,412 or 14% from the prior year. The City’s largest functional expense is

public safety of $12,903,441. Public safety increased by 14%, primarily due to additional personnel costs

and added supplies costs. Community services increased by $1,721,252 or 42% primarily as a result of

added mowing and repairs and maintenance costs for parks. Public works increased by $479,573 or 8%

due to added personnel costs and higher repairs and maintenance costs. Interest and fiscal charges

decreased by $32,091 or 6% primarily due to the nonrecurring debt issuance costs of the certificates of

obligation bonds and capital lease agreements entered into in the previous year. All other expenses

remained relatively consistent with the previous year.


September 30, 2019

13

Business-type activities are shown comparing operating costs to revenues generated by related

services.

For the year ended September 30, 2019, charges for services by business-type activities totaled

$12,783,394. This is an increase of $228,046, or 2%, from the previous year. The increase is a result of

the growth in the City’s customer base and an increase in water consumption.

Total expenses increased $773,822 or 8%, primarily due to added interest expenses and repairs and

maintenance costs in the current year.

FINANCIAL ANALYSIS OF THE CITY’S FUNDS

As noted earlier, fund accounting is used to demonstrate and ensure compliance with finance-related

legal requirements.

Governmental Funds - The focus of the City’s governmental funds is to provide information of near-

term inflows, outflows and balances of spendable resources. Such information is useful in assessing

the City’s financing requirements. In particular, unreserved fund balance may serve as a useful

measure of the City’s net resources available for spending at the end of the year.

As of the end of the year the general fund reflected a total fund balance of $6,966,067. Of this, $106,594

is non-spendable inventories, $220,979 is non-spendable advances, $11,002 is committed to cemetery,

$159,596 is committed for contingency and $216,383 is committed to vehicle replacement. Unassigned

fund balance totaled $6,251,513 as of year end.

General fund balance decreased by $731,973 due to a planned budget deficit, in addition to receiving

less fine and forfeiture revenues than anticipated. Charges for services is the City’s largest revenue

source at $8,953,765, which consists of refuse, ambulance, and other service charges. Property tax

increased by $666,359 when compared to the prior year due to an increase in assessed property values.


September 30, 2019

14

Sales tax increased by $119,689 due to growth in the local economy. Public safety expenditures

increased by $652,717 due primarily to increased personnel costs and supplies expenses. General

government expenditures increased $172,566 due primarily to additional personnel costs in the current

year. Community services expenditures increased by $802,978 primarily due to additional personnel

costs as well as additional mowing and park maintenance costs.

The general bond fund reflected a total fund balance of $220,572, a decrease of $665,745 from the prior

year. The decrease is primarily a result of significant capital expenditures for the downtown design

project. In addition, total expenses exceeded intergovernmental revenue and other financing sources in

the current year.

Proprietary Funds - The City’s proprietary funds provide the same type of information found in the

government-wide financial statements, but in more detail.

GENERAL FUND BUDGETARY HIGHLIGHTS

There was a total negative budget variance of $477,743 in the general fund. This is a combination of a

negative revenue variance of $399,373, negative expenditure variance $15,002, and negative variance in

other financing sources of $63,368.

The original general fund budget surplus of $299,707 was amended during the year to a final budgeted

deficit of $254,230. Significant amendments include an increase in the fire, police and garage

departments for personnel costs and repairs and maintenance. Several other reclassifications and

amendments were also made.

CAPITAL ASSETS

As of the end of the year, the City’s governmental activities funds had invested $53,392,159 in a variety

of capital assets and infrastructure, net of accumulated depreciation. Depreciation is included with the

governmental capital assets as required by GASB Statement No. 34. The City’s business-type activities

funds had invested $47,228,294 in a variety of capital assets and infrastructure, net of accumulated

depreciation.

Major capital asset events during the current year include the following additions:

Purchase of new siren system totaling $187,542.

Purchase of four new automated sanitation trucks totaling $1,153,071.

Purchase of new sanitation equipment totaling $536,470.

Street improvements totaling $234,217.

Construction in progress related to the THF Park sports complex amounting to $889,889.

Construction in progress for the downtown design project totaling $781,178.

Construction in progress for the water and sewer line improvements totaling $1,635,027.

New vehicles and equipment for water distribution department totaling $219,561.


September 30, 2019

15

More detailed information about the City’s capital assets is presented in note IV. D to the financial

statements.

LONG-TERM DEBT

At the end of the current year, the City had total bonds, notes payable, tax notes, and capital leases

outstanding of $55,973,674. During the year, the City had payments on long-term totaling $3,968,763.

Additions to long-term debt include capital leases totaling $1,171,387 and certificates of obligation

totaling $8,255,000. More detailed information about the City’s long-term liabilities is presented in note

IV. E to the financial statements.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

The Mayor and City Council are committed to maintaining and improving the overall wellbeing of the

City of Denison and improving services provided to their public citizens. The City is budgeting for

growth in the upcoming year.

The following known factors were considered in preparing the City’s operating budget for fiscal year

2019-2020:

The fiscal year 2020 budget will raise more total property taxes than last year’s budget by

$646,553 (7.93%). Of that amount, $399,275 is tax revenue to be raised from new property

added to the tax roll.

The adopted property tax rate for fiscal year 2019-2020 has increased to $0.652034 per $00

valuation, from the prior year rate of $0.633377 per $100 valuation.

Sales tax receipts were up in fiscal year 2019, and we expect an increase in fiscal year 2020 as

well.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT

This financial report is designed to provide a general overview of the City of Denison’s finances for all

those with an interest in the City’s finances. Questions concerning this report or requests for additional

financial information should be directed to the Director of Finance & Administrative Services, 300 West

Main Street, P.O. Box 347, Denison, Texas 75021.

FINANCIAL STATEMENTS

17

Cash and cash equivalents $ 6,517,242 $ 13,658,699 $ 20,175,941 $ 2,756,883

Investments - 906,254 906,254 -

Restricted assets - cash 1,151,574 407,073 1,558,647 157,223

Restricted assets - investments - - - 740,032

Receivables, net 3,617,601 2,066,784 5,684,385 397,324

Inventory 106,594 160,635 267,229 -

Current portion of grant receivables 793,519 - 793,519 -

Notes receivable - - - 114,529

235,516 - 235,516 -

Total Current Assets 12,422,046 17,199,445 29,621,491 4,165,991

Investments - - - 482,336

Notes receivable - long-term portion - - - 550,367

Long-term grant receivables 3,967,595 - 3,967,595 -

Capital assets:

Non-depreciable 4,484,429 2,624,057 7,108,486 1,687,842

Net depreciable capital assets 48,907,730 44,604,237 93,511,967 3,077,221

Total Noncurrent Assets 57,359,754 47,228,294 104,588,048 5,797,766

Total Assets 69,781,800 64,427,739 134,209,539 9,963,757

Deferred Outflows of Resources

Pension contributions 1,195,125 257,604 1,452,729 -

Pension investment earnings 3,506,753 767,296 4,274,049 -

Pension experience vs assumption 4,033 1,284 5,317 -

Deferred charge on bond refunding - 42,066 42,066 -

4,705,911 1,068,250 5,774,161 - Total Deferred Outflows of Resources

City of Denison, TexasSTATEMENT OF NET POSITION (Page 1 of 2)

Units

Component

Primary Government

September 30, 2019

Business-Type


Governmental

Total

Assets

Interest in net position of recipient

18

Liabilities

Accounts payable and

accrued liabilities 1,040,410 426,465 1,466,875 88,883

Customer deposits - 420,714 420,714 -

Escrow payable - - - 31,701

Accrued interest payable 74,729 267,162 341,891 3,495

Compensated absences - current 1,408,387 299,649 1,708,036 7,709

Landfill post closure costs - current 30,404 - 30,404 -

Long-term liabilities due within one year 2,733,245 2,103,239 4,836,484 571,533

Total Current Liabilities 5,287,175 3,517,229 8,804,404 703,321

Noncurrent liabilities:

Net pension liability 12,757,441 1,928,134 14,685,575 -

Compensated absences - noncurrent 1,334,030 246,385 1,580,415 69,382

Landfill post closure costs - noncurrent 56,432 - 56,432 -

Due in more than one year 18,206,193 35,309,281 53,515,474 396,000

Total Noncurrent Liabilities 32,354,096 37,483,800 69,837,896 465,382

Total Liabilities 37,641,271 41,001,029 78,642,300 1,168,703

Deferred Inflows of Resources

Pension experience 955,370 55,977 1,011,347 -

Total Deferred Inflows of Resources 955,370 55,977 1,011,347 -

Net investment in capital assets 37,535,804 18,465,710 56,001,514 3,873,062

Restricted for:

Capital improvements 719,407 - 719,407 -

Debt service 630,144 - 630,144 13,257

Municipal court 19,185 - 19,185 -

Public safety 130,005 - 130,005 -

Library 146,657 - 146,657 -

Unrestricted (3,290,132) 5,973,273 2,683,141 4,908,735

Total Net Position $ 35,891,070 $ 24,438,983 $ 60,330,053 $ 8,795,054

See Notes to Financial Statements.

Units

Net Position

City of Denison, TexasSTATEMENT OF NET POSITION (Page 2 of 2)

September 30, 2019

Primary Government

Governmental Business-Type Component

Activities Activities Total

19

Primary Government

Governmental Activities

General government $ 5,674,881 $ 1,418,334 $ 449,370 $ -

Public safety 12,903,441 1,829,812 - -

Community services 5,776,713 1,688,766 - -

Public works 6,804,281 5,410,774 - -

Interest and fiscal charges 506,897 - - -

31,666,213 10,347,686 449,370 -

Business-Type Activities

Water & Sewer 10,545,353 12,783,394 - -

Total Business-Type Activities 10,545,353 12,783,394 - -

Total Primary Government $ 42,211,566 $ 23,131,080 $ 449,370 -

Component units:

Business and Industrial Corporation 1,869,478 496,391 - 20,092

Denison Public Library Endowment Fund 68,377 - 10,620 -

Denison Community Investment Corp. 23,516 - - -

$ 1,961,371 $ 496,391 $ 10,620 $ 20,092

General Revenues:

Taxes

Property taxes

Sales taxes

Franchise and local taxes

Investment income

Other revenues

Transfers

Total General Revenues and Transfers


Beginning Net Position

Ending Net Position


Charges for Grants and Grants and

Operating

Program Revenues

Capital

City of Denison, TexasSTATEMENT OF ACTIVITIES


Total Component Units

Expenses Contributions

Total Governmental Activities

Functions/Programs Services Contributions

20

$ (3,807,177) $ - $ (3,807,177) $ -

(11,073,629) - (11,073,629) -

(4,087,947) - (4,087,947) -

(1,393,507) - (1,393,507) -

(506,897) - (506,897) -

(20,869,157) - (20,869,157) -

- 2,238,041 2,238,041 -

- 2,238,041 2,238,041 -

$ (20,869,157) $ 2,238,041 $ (18,631,116) $ -

- - - (1,352,995)

- - - (57,757)

- - - (23,516)

$ - $ - $ - $ (1,434,268)

10,049,035 - 10,049,035 -

5,710,960 - 5,710,960 1,903,653

1,935,460 - 1,935,460 -

216,726 285,187 501,913 121,661

624,662 - 624,662 3,445

5,024 (5,024) - -

18,541,867 280,163 18,822,030 2,028,759

(2,327,290) 2,518,204 190,914 594,491

38,218,360 21,920,779 60,139,139 8,200,563

$ 35,891,070 $ 24,438,983 $ 60,330,053 $ 8,795,054

Component

Units

Governmental

Total

Business-Type

ActivitiesActivities

Net (Expense) Revenue and Changes in Net Position

Primary Government

21

Cash and cash equivalents $ 4,565,862 $ 153,532 $ 1,797,848 $ 6,517,242

Restricted assets - cash - 192,774 958,800 1,151,574

Receivables, net 8,221,626 - 157,089 8,378,715

Due from other funds 75,965 - - 75,965

Inventory 106,594 - - 106,594

Advances to other funds 220,979 - - 220,979

- - 235,516 235,516

$ 13,191,026 $ 346,306 $ 3,149,253 $ 16,686,585

Liabilities

Accounts payable and accrued liabilities $ 655,707 $ 125,734 $ 258,969 $ 1,040,410

Due to other funds - - 75,965 75,965

Advances from other funds - - 220,979 220,979

655,707 125,734 555,913 1,337,354


Unavailable revenue - property taxes 397,396 - 72,709 470,105

Unavailable revenue - franchise taxes 38,560 - - 38,560

Unavailable revenue - fines and forfeitures 62,771 - - 62,771

Unavailable revenue - grants 4,761,114 - - 4,761,114

Unavailable revenue - contractual services 309,411 - - 309,411

5,569,252 - 72,709 5,641,961

Governmental

FundsBond

Nonmajor Total

City of Denison, TexasBALANCE SHEET (Page 1 of 2)

GOVERNMENTAL FUNDSSeptember 30, 2019

General Governmental

Assets

Funds

Total Assets

Total Liabilities

General

Interest in net position of recipient

organization

Total Deferred Inflows of Resources

22

Nonspendable:

Inventory 106,594 - - 106,594

Advances 220,979 - - 220,979

Restricted for:

Debt service - - 630,144 630,144

Capital improvements - 220,572 498,835 719,407

Municipal court - - 19,185 19,185

Public safety - - 130,005 130,005

Community services - - 146,657 146,657

Committed to:

Parks - - 299,052 299,052

Cemetery 11,002 - - 11,002

Contingency 159,596 - - 159,596

General government - - 7,334 7,334

Capital projects - - 628,961 628,961

Vehicle replacement 216,383 - - 216,383

Assigned to:

Capital projects - - 235,516 235,516

Unassigned reported in:

General fund 6,251,513 - (75,058) 6,176,455

6,966,067 220,572 2,520,631 9,707,270

$ 13,191,026 $ 346,306 $ 3,149,253 $ 16,686,585


Total Fund Balances

Total Liabilities, Deferred Inflows of

Resources, and Fund Balances

Fund Balances

City of Denison, TexasBALANCE SHEET (Page 2 of 2)


23

Fund Balances - Total Governmental Funds $ 9,707,270

Adjustments for the Statement of Net Position:

Capital assets used in governmental activities are not current financial

resources and, therefore, not reported in the governmental funds.

Capital assets - non-depreciable 4,484,429

Capital assets - net depreciable 48,907,730

Deferred outflows of resources, represent a consumption of net position that applies

to a future period(s) and is not recognized as an outflow of resources (expenditure)

until then.

Pension contributions 1,195,125

Pension investment returns (955,370)

Pension experience vs assumptions 4,033

Pension experience 3,506,753

Other long-term assets are not available to pay for current-period

expenditures and, therefore, are deferred in the governmental funds.

Unavailable revenue items 880,847

THF grant receivable 4,761,114

Some liabilities, including bonds payable and deferred charges, are not reported as

liabilities in the governmental funds.

Accrued interest (74,729)

Compensated absences (2,742,417)

Bond premium (302,617)

Bonds, notes and other payables (20,636,821)

Landfill post-closure care costs (86,836)

Net pension liability - firefighter's pension fund (6,701,845)

Net pension liability - TMRS (6,055,596)

$ 35,891,070


Net Position of Governmental Activities

City of Denison, TexasRECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION


25

Revenues

Property tax $ 8,000,437 $ - $ 2,039,632 $ 10,040,069

Sales tax 5,710,960 - - 5,710,960

Franchise and local taxes 1,935,460 - - 1,935,460

License and permits 607,804 - - 607,804

Intergovernmental - 797,349 445,540 1,242,889

Charges for services 8,953,765 - 607,083 9,560,848

Fines and forfeitures 305,184 - 95,363 400,547

Investment income 140,681 19,481 56,564 216,726

Other revenue 231,740 - 392,922 624,662

25,886,031 816,830 3,637,104 30,339,965

Expenditures

Current:

General government 4,786,107 6,512 463,497 5,256,116

Public safety 11,205,462 - 413,288 11,618,750

Community services 4,906,720 1,020,141 541,209 6,468,070

Public works 6,122,972 - 259,188 6,382,160

Capital outlay 1,930,895 - 468,565 2,399,460

Debt Service:

Principal 740,096 715,000 1,201,399 2,656,495

Interest and fiscal charges 63,126 108,653 359,698 531,477

29,755,378 1,850,306 3,706,844 35,312,528

(3,869,347) (1,033,476) (69,740) (4,972,563)

Other Financing Sources (Uses)

Transfers in 1,913,923 367,731 670,000 2,951,654

Transfers (out) (664,049) - (441,112) (1,105,161)

Lease proceeds 1,887,500 - - 1,887,500

3,137,374 367,731 228,888 3,733,993

(731,973) (665,745) 159,148 (1,238,570)

Beginning fund balances 7,698,040 886,317 2,361,483 10,945,840

$ 6,966,067 $ 220,572 $ 2,520,631 $ 9,707,270


Total Revenues

Total Expenditures

Excess (Deficiency) of Revenues

Over (Under) Expenditures

Ending Fund Balances

General

General

Total Other Financing

Sources (Uses)

Net Change in Fund Balances

City of Denison, TexasSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

GOVERNMENTAL FUNDS


FundsBond Funds

Governmental

TotalNonmajor

Governmental

26

Amounts reported for governmental activities in the statement of activities are

different because:

Net changes in fund balances - total governmental funds $ (1,238,570)

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.

Capital outlay 3,933,865

Depreciation expense (1,787,895)

Net effect of capital asset transfers and disposals (1,894,123)

Revenues in the statement of activities that do not provide current financial

resources are not reported as revenues in the funds.

Unavailable revenues (212,547)

THF grant revenue (793,519)

Some expenses reported in the statement of activities do not require the use of current

financial resources and, therefore, are not reported as expenditures in governmental funds.

Compensated absences (155,018)

Pension expense - TMRS (690,736)

Pension expense - Firemen's pension (314,450)

Accrued interest (14,050)

The issuance of long-term debt (e.g., bonds, leases, certificates of obligation)

provides current financial resources to governmental funds, while the

repayment of the principal of long-term debt consumes the current financial

resources of governmental funds. Neither transaction, however, has any

effect on net position. Also, governmental funds report the effect of premiums,

discounts, and similar items when they are first issued; whereas, these amounts

are deferred and amortized in the statement of activities. This amount is the

net effect of these differences in the treatment of long-term debt and related items.

Amortization of premium 38,628

Issuance of debt (1,887,500)

Principal payments 2,656,497

Landfill post-closure cost 32,128

$ (2,327,290)


Change in Net Position of Governmental Activities


City of Denison, TexasRECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE

STATEMENT OF ACTIVITIES

27

Current Assets

Cash and cash equivalents $ 13,658,699

Investments 906,254

Receivables, net 2,066,784

Inventory 160,635

Restricted assets - cash 407,073

17,199,445

Noncurrent Assets

Capital assets:

Non-depreciable 2,624,057

Net depreciable capital assets 44,604,237

64,427,739

Deferred Outflows of Resources

Pension contributions 257,604

Pension investment returns 767,296

Pension experience vs assumption 1,284

Deferred charge on bond refunding 42,066

1,068,250

Current Liabilities

Accounts payable and accrued liabilities 426,465

Customer deposits 420,714

Accrued interest 267,162

Compensated absences - current 299,649

Long-term liabilities due within one year 2,103,239

3,517,229

Long-term Liabilities

Compensated absences - noncurrent 246,385

Long-term liabilities in more than one year 35,309,281

Net pension liability 1,928,134

37,483,800


Pension investment experience 55,977

55,977

Net investment in capital assets 18,465,710

Unrestricted 5,973,273

$ 24,438,983


Total Current Assets

Utility

Fund

Total Net Position

Net Position

Total Assets

Liabilities

Total Current Liabilities

Total Deferred Outflows of Resources

Total Long-term Liabilities

Total Deferred Inflows of Resources

City of Denison, TexasSTATEMENT OF NET POSITION

PROPRIETARY FUND

September 30, 2019

Assets

28

Operating Revenues

Charges for services $ 12,624,603

Other revenue 158,791

12,783,394

Operating Expenses

Personnel services 3,841,555

Supplies and materials 1,325,500

Contractual services 2,069,585

Repairs and maintenance 626,421

Depreciation 1,474,947

9,338,008

3,445,386

Nonoperating Revenues (Expenses)

Investment income 285,187

Bond issuance expense (150,777)

Interest expense (1,056,568)

(922,158)

2,523,228

Transfers (out) (1,846,493)

Capital contributions from governmental activities 1,841,469

Total Capital Contributions and Transfers (5,024)

2,518,204

21,920,779

$ 24,438,983


Fund

Ending Net Position

Total Operating Revenues

Total Operating Expenses


Operating Income

Total Nonoperating Revenues (Expenses)

Income Before Capital Contributions and Transfers

Beginning net position

City of Denison, TexasSTATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION


PROPRIETARY FUND

Utility

29

Cash Flows from Operating Activities

Receipts from customers $ 13,115,564

Payments to suppliers and service providers (4,021,506)

Payments to employees for salaries and benefits (3,911,092)

5,182,966

Cash Flows from Noncapital Financing Activities

Transfer (out) (1,846,493)

(1,846,493)

Cash Flows from Capital and Related Financing Activities

Capital purchases (1,949,976)

Capital disposals 1,225

Proceeds from bond issuance 5,685,713

Bond issuance costs (85,713)

Principal paid on debt (1,845,937)

Interest paid on debt (1,227,409)

577,903

Cash Flows from Investing Activities

Interest on investments 285,187

Purchase of investments (898,000)

Proceeds from sales and maturities of investments 291,746

(321,067)

3,593,309

Beginning cash and cash equivalents 10,472,463

$ 14,065,772


Net Cash (Used) by Noncapital Financing Activities

Net Cash Provided (Used) by Capital and Related Financing Activities

Ending Cash and Cash Equivalents

Net Cash Provided by Investing Activities

City of Denison, TexasSTATEMENT OF CASH FLOWS

PROPRIETARY FUND (Page 1 of 2)


Net Increase (Decrease) in Cash and Cash Equivalents

Net Cash Provided by Operating Activities

Fund

Utility

30

Reconciliation of Operating Income

to Net Cash Provided by Operating Activities

Operating Income $ 3,445,386

Adjustments to reconcile operating

income to net cash provided:

Depreciation 1,474,947

Changes in Operating Assets and Liabilities:

(Increase) Decrease in:

Accounts receivable 249,298

Inventory 82,872

Deferred Outflows of Resources:

Pension contributions 7,233

Pension investment returns (1,159,555)

Actual experience vs. assumption 67,519

Increase (Decrease) in:

Accounts payable and accrued liabilities (165,293)

Compensated absences (74,427)

Net pension liability 1,341,926

Deferred Inflows of Resources:

Investment experience (86,940)

$ 5,182,966

Schedule of Non-Cash Capital and Related Financing Activities

Capital assets contributed from governmental activities $ 1,841,469


Net Cash Provided by Operating Activities


Fund

Utility

STATEMENT OF CASH FLOWS

PROPRIETARY FUND (Page 2 of 2)


31

Cash and cash equivalents $ 73,752 $ 16,956 $ 90,708

73,752 16,956 90,708

Other accrued liabilities 73,752 16,956 90,708

$ 73,752 $ 16,956 $ 90,708


Total Liabilities

Assets

Total Assets

Liabilities

TotalSeizure Fund City Fund

Police

City of Denison, TexasSTATEMENT OF NET POSITION

FIDUCIARY FUNDS

September 30, 2019

Sister

32

Cash and cash equivalents $ 55,768 $ 18,002 $ (18) $ 73,752

55,768 18,002 (18) 73,752

Other accrued liabilities 55,768 18,002 (18) 73,752

$ 55,768 $ 18,002 $ (18) $ 73,752

Cash and cash equivalents $ - $ 33,373 $ (16,417) $ 16,956

- 33,373 (16,417) 16,956

Other accrued liabilities - 33,373 (16,417) 16,956

$ - $ 33,373 $ (16,417) $ 16,956


Total Assets

Liabilities

Total Liabilities

Balance Additions Deductions Balance

Assets

Sister City Fund

Beginning Ending

City of Denison, TexasSTATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUNDS


Beginning Ending

Balance Additions Deductions Balance

Police Seizure Fund

Assets

Total Assets

Liabilities

Total Liabilities

33

City of Denison, TexasNOTES TO FINANCIAL STATEMENTS

September 30, 2019

35

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The City of Denison, Texas (the “City”) is governed by an elected mayor and a six-member

council and provides the following services to the citizens of the City as authorized by its

charter: public safety (police and fire), public works and transportation, parks and recreation,

water and sewer utilities, and general administrative services.

The accounting policies of the City conform to generally accepted accounting principles (GAAP)

applicable to government units. The following is a summary of the more significant accounting

policies.

A. Description of Government-Wide 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 nonfiduciary activities of the primary

government and its component units. All fiduciary activities are reported only in the fund

financial statements. Governmental activities, which normally are supported by taxes,

intergovernmental revenues, and other nonexchange transactions, are reported separately

from business-type activities, which rely to a significant extent on fees and charges to external

customers for support. Likewise, the primary government is reported separately from certain

legally separate component units for which the primary government is financially

accountable.

B. Reporting Entity

The City is an independent political subdivision of the State of Texas governed by an elected

council and a mayor and is considered a primary government. For financial reporting

purposes, management has considered all potential component units. Component units are

legally separate organizations for which the elected officials of the primary government are

financially accountable. The decision to include a potential component unit in the reporting

entity was made by applying the criteria set forth in GAAP. The criteria used are as follows:

Financial Accountability – The primary government is deemed to be financially accountable

if it appoints a voting majority of the organization’s governing body and (1) it is able to

impose its will on that organization or (2) there is a potential for the organization to provide

specific financial benefits or impose specific financial burdens on the primary government.

Additionally, the primary government may be financially accountable if an organization is

fiscally dependent on the primary government and there is a potential for the organization

to provide specific financial benefits or impose specific financial burdens on the primary

government regardless of whether the organization has a separately elected governing

board, a governing board appointed by a higher level of government or a jointly appointed

board.

City of Denison, TexasNOTES TO FINANCIAL STATEMENTS, Continued

September 30, 2019

36

Discretely Presented Component Units

Business and Industrial Corporation of Denison

The Business and Industrial Corporation of Denison (the “BICD”) is a nonprofit corporation

established on April 1, 1996, for the economic development activities of the City. Although

legally separate from the City, BICD is governed by a Board of Directors appointed by the

City Council. BCID is a single-purpose, governmental activity funded by one-half percent

sales tax levied on taxable sales within the City of Denison. The nature and significance of

the relationship between the primary government and the corporation is such that exclusion

would cause the City’s financial statements to be misleading or incomplete. Records are

maintained on an October 1st through September 30th fiscal year. BICD issues separate

financial statements that are available from the BCID administrative offices located at 311

W. Woodard, Denison, Texas. In addition, the fiscal year 2019 financials were audited by a

separate audit firm, McClanahan & Homes.

Denison Community Investment Corporation

The Denison Community Investment Corporation (the “DCIC”) is a nonprofit corporation

established on June 17, 1988, for the economic development activities of the City. Although

legally separate from the City, DCIC is governed by a Board of Trustees appointed by the

City Council. DCIC is a single-purpose, business-type activity. The nature and significance

of the relationship between the primary government and the corporation is such that

exclusion would cause the City’s financial statements to be misleading or incomplete.

Records are maintained on a calendar year basis, ending December 31, 2018. DCIC issues

separate financial statements that are available from the DCIC administrative offices located

at 123 W. Main, Denison, Texas.

Denison Public Library Endowment Fund

The Denison Public Library Endowment Fund (the “Fund”) is a 501(c)(3) nonprofit

corporation established on January 17, 1986, for the purpose of maintaining, development,

and promoting the Denison Public Library. A Board of Trustees appointed by the City

Council governs the Fund. The nature and significance of the relationship between the

primary government and the corporation is such that exclusion would cause the City’s

financial statements to be misleading or incomplete. Records are maintained on an October

1st through September 30th fiscal year. The fund issues separate financial statements that are

available from the Fund’s administrative offices located at 300 West Gandy Street, Denison,

Texas.


September 30, 2019

37

Blended Component Unit

Mr. and Mrs. Charles H. Jones Memorial Library Trust

The Mr. and Mrs. Charles H. Jones Memorial Library Trust (the “Trust”) is a private

foundation established on October 16, 1962, for the purpose of purchasing books and

providing capital improvements for the Denison Public Library. The Denison Public Library

is the sole recipient and beneficiary of the Trust. The Trust’s accounting records are

maintained by the Landmark Bank (Trustee) located at 2820 West FM 120, Denison, Texas.

As the trust is managed by the City it has been reported as a blended component unit.

Joint Venture

Texoma Area Solid Waste Authority

Joint Ventures are legal entities or other organizations that result from a contractual

arrangement that are owned, operated, or governed by two or more participants as a

separate and specific activity subject to joint control. The participants retain either an

ongoing financial interest or an ongoing financial responsibility. The City’s only joint

venture is described as follows:

Texoma Area Solid Waste Authority (“TASWA”) was created by the City and other local

governments in Cook and Grayson counties in May 2000 to develop and operate a

municipal landfill for benefit of local governments and their constituents. The City’s Mayor

serves as one of five member of TASWA’s Board of Directors; however, the City has no

significant influence over TASWA’s administration or operation.

Jointly-Governed Entity

Greater Texoma Utility Authority

Jointly-governed entities are legal entities that are jointly controlled, but the controlling

parties do not retain an ongoing financial interest or responsibility. Greater Texoma Utility

Authority (“GTUA”) was created to assist local governments with the financing and

construction of water, sewer, and solid waste facilities. The City Council appoints three

members of GTUA’s nine-member Board of Directors; however, the City has no significant

influence over GTUA’s administration or operations.

GTUA operates the Dipping Springs Landfill under contract with the cities of Denison and

Sherman. During the year, the City paid GTUA $13,348 for landfill post-closure costs.

GTUA issues separate audited financial statements that are available from GTUA’s

administrative offices located at 5100 Airport Drive, Denison, Texas.


September 30, 2019

38

C. Basis of Presentation – Government-Wide and Fund Financial Statements

While separate government-wide and fund financial statements are presented, they are

interrelated. The governmental activities column incorporates data from governmental

funds while business-type activities incorporate data from the government’s enterprise

funds. Separate financial statements are provided for governmental funds and the

proprietary funds.

As discussed earlier, the government has three discretely presented component units which

are shown in separate columns in the government-wide financial statements.

As a general rule, the effect of interfund activity has been eliminated from the government-

wide financial statements. Exceptions to this general rule are payments where the amounts

are reasonably equivalent in value to the interfund services provided and other charges

between the various other functions of the government. Elimination of these charges would

distort the direct costs and program revenues reported for the various functions concerned.

The fund financial statements provide information about the government’s funds, including

its fiduciary funds and blended component units. Separate statements for each fund

category; governmental and proprietary are presented. The emphasis of fund financial

statements is on major governmental and enterprise funds, each displayed in a separate

column. All remaining governmental and enterprise funds are aggregated and reported as

nonmajor funds. Major individual governmental and enterprise funds are reported as

separate columns in the fund financial statements. The government reports the following

major governmental funds:

Governmental Funds

Governmental funds are those funds through which most governmental functions are

typically financed.

General Fund

The general fund is used to account for all financial transactions not properly includable

in other funds. The principal sources of revenues include local property taxes, sales and

franchise taxes, licenses and permits, fines and forfeitures, and charges for services.

Expenditures include general government, public safety, public service, culture and

recreation, and public works.

General Bond Fund

The general bond fund accounts for the acquisition and construction of the government’s

major capital facilities, other than those financed by proprietary funds.


September 30, 2019

39

Proprietary Fund Types

Proprietary funds are used to account for activities that are similar to those often found in

the private sector. All assets, liabilities, equities, revenues, expenses, and transfers relating

to the government’s business activities are accounted for through proprietary funds. The

measurement focus is on determination of net income, financial position, and cash flows.

Proprietary funds distinguish operating revenues and expenses from non-operating items.

Operating revenues include charges for services. Operating expenses include costs of

materials, contracts, personnel, and depreciation. All revenues and expenses not meeting

this definition are reported as non-operating revenues and expenses. Proprietary fund

types follow GAAP prescribed by the Governmental Accounting Standards Board (GASB).

The proprietary fund types used by the City include enterprise funds.

The government reports the following major enterprise fund:

Utility Fund

This fund is used to account for the provision of water and sewer services to the residents

of the City. Activities of the fund include administration, operations and maintenance of

the water production and distribution system, water collection and treatment systems.

The fund also accounts for the accumulation of resources for and the payment of long-

term debt. All costs are financed through charges to utility customers.

Additionally, the City reports for the following fund types:

Debt Service Fund

The City accounts for the accumulation of financial resources for the payments of

principal, interest and related costs on general long-term debt paid primarily from taxes

levied by the City. The fund balance of the debt service fund is restricted exclusively for

debt service expenditures.

Special Revenue Funds

The City accounts for resources restricted to, or designated for, specific purposes in a

special revenue fund.

Agency Funds

The police seizure fund accounts for assets seized by the police department in which the

City holds in a custodial capacity. The sister city fund accounts for assets donated to a

local nonprofit which the City holds in a custodial capacity.


September 30, 2019

40

During the course of operations the government has activity between funds for various

purposes. Any residual balances outstanding at year end are reported as due from/to other

funds and advances to/from other funds. While these balances are reported in fund financial

statements, certain eliminations are made in the preparation of the government-wide

financial statements. Balances between the funds included in governmental activities (i.e.,

the governmental and internal service funds) are eliminated so that only the net amount is

included as internal balances in the governmental activities column. Similarly, balances

between the funds included in business-type activities (i.e., the enterprise funds) are

eliminated so that only the net amount is included as internal balances in the business-type

activities column.

Further, certain activity occurs during the year involving transfers of resources between

funds. In fund financial statements these amounts are reported at gross amounts as transfers

in/out. While reported in fund financial statements, certain eliminations are made in the

preparation of the government-wide financial statements. Transfers between the funds

included in governmental activities are eliminated so that only the net amount is included

as transfers in the governmental activities column. Similarly, balances between the funds

included in business-type activities are eliminated so that only the net amount is included as

transfers in the business-type activities column.

D. Measurement Focus and Basis of Accounting

The accounting and financial reporting treatment is determined by the applicable

measurement focus and basis of accounting. Measurement focus indicates the type of

resources being measured such as current financial resources or economic resources. The basis

of accounting indicates the timing of transactions or events for recognition in the financial

statements.

The government-wide financial statements are reported using the economic resources

measurement focus and the accrual basis of accounting. 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 the year for which they are levied.

Grants and similar items are recognized as revenue as soon as all eligibility requirements

imposed by the provider have been met.

The 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 government 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


September 30, 2019

41

compensated absences, and claims and judgments, are recorded only when payment is due.

General capital asset acquisitions are reported as expenditures in governmental funds.

Issuance of long-term debt and acquisitions under capital leases are reported as other

financing sources.

Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current

fiscal period are all considered to be susceptible to accrual and so have been recognized as

revenues of the current fiscal period. Entitlements are recorded as revenues when all

eligibility requirements are met, including any time requirements, and the amount is

received during the period or within the availability period for this revenue source (within

60 days of year end). Expenditure-driven grants are recognized as revenue when the

qualifying expenditures have been incurred and all other eligibility requirements have been

met, and the amount is received during the period or within the availability period for this

revenue source (within 60 days of year end). All other revenue items are considered to be

measurable and available only when cash is received by the government.

Proprietary, pension and other postemployment benefit trust funds are reported using the

economic resources measurement focus and the accrual basis of accounting. Agency funds have no

measurement focus but utilize the accrual basis of accounting for reporting its assets and

liabilities.

E. Assets, Liabilities, Deferred Outflows/Inflows, and Fund Equity or Net Position

1. Deposits and Investments

The City’s cash and cash equivalents are considered to be cash on hand, demand deposits

and short term investments with original maturities of three months or less from the date of

acquisition. For the purpose of the statement of cash flows, the proprietary fund types

consider temporary investments with maturity of three months or less when purchased to

be cash equivalents.

In accordance with GASB Statement No. 31, Accounting and Reporting for Certain Investments

and External Investment Pools, the City reports all investments at fair value, except for

“money market investments” and “2a7-like pools.” Money market investments, which are

short-term highly liquid debt instruments that may include U.S. Treasury and agency

obligations, are reported at amortized costs. Investment positions in external investment

pools that are operated in a manner consistent with the SEC’s Rule 2a7 of the Investment

Company Act of 1940, such as TexSTAR, are reported using the pools’ share price.


September 30, 2019

42

The City has adopted a written investment policy regarding the investment of its funds as

defined in the Public Funds Investment Act, Chapter 2256, of the Texas Governmental Code.

In summary, the City is authorized to invest in the following:

Direct obligations of the U.S. Government

Fully collateralized certificates of deposit and money market accounts

Statewide investment pools

2. Fair Value

The City has applied Governmental Accounting Standards Board (“GASB”) Statement No.

72, Fair Value Measurement and Application. GASB Statement No. 72 provides guidance for

determining a fair value measurement for reporting purposes and applying fair value to

certain investments and disclosures related to all fair value measurements.

3. Receivables and Interfund Transactions

Transactions between funds that are representative of lending/borrowing arrangements

outstanding at the end of the year are referred to as either “interfund receivables/payables”

(i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-

current portion of interfund loans). All other outstanding balances between funds are

reported as “due to/from other funds” in the fund financial statements. If the transactions

are between the primary government and its component unit, these receivables and

payables are classified as “due to/from component unit/primary government.” 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 are offset by a fund balance reserve account in the applicable

governmental fund to indicate they are not available for appropriation and are not

expendable available financial resources.

All trade receivables are shown net of any allowance for uncollectible amounts.

4. Property Taxes

Property taxes are levied by October 1 on the assessed value listed as of the prior January 1

for all real and business personal property in conformity with Subtitle E, Texas Property Tax

Code. Taxes are due on receipt of the tax bill and are delinquent if not paid before February

1 of the year following the year in which imposed. Penalties are calculated after February 1

up to the date collected by the government at the rate of 6% for the first month and

increased 1% per month up to a total of 12%. Interest is calculated after February 1 at the

rate of 1% per month up to the date collected by the government. Under state law, property

taxes levied on real property constitute a lien on the real property which cannot be forgiven


September 30, 2019

43

without specific approval of the State Legislature. The lien expires at the end of twenty

years. Taxes levied on personal property can be deemed uncollectible by the City.

5. Inventories and Prepaid Items

The costs of governmental fund type inventories are recorded as expenditures when they

are utilized rather than when purchased, (i.e., the consumption method). The inventories

are reported at cost using the first-in/first-out method. Certain payments to vendors reflect

costs applicable to future accounting periods (prepaid expenditures) are recognized as

expenditures when utilized.

6. Restricted Assets

Certain proceeds of governmental and enterprise fund cash and investments are classified

as restricted assets on the statement of net position because their use is limited by applicable

bond covenants, legal restrictions, or restrictions in place by outside parties.

7. Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets (e.g.,

roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or

business-type activities columns in the government-wide financial statements. Capital

assets are defined by the government, as assets with an initial individual cost of more than

$5,000 and an estimated useful life in excess of one year. Such assets are recorded at

historical cost or estimated historical cost if purchased or constructed. Donated capital

assets, donated works of art an similar items, and capital assets received in a service

concession arrangement are recorded at acquisition value at the date of donation. Major

outlays for capital assets and improvements are capitalized as projects are constructed.

Interest costs incurred in connection with construction of enterprise fund capital assets are

capitalized when the effects of capitalization materially impact the financial statements.

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.


September 30, 2019

44

Property, plant, and equipment of the primary government, as well as the component units,

are depreciated using the straight-line method over the following estimated useful years.

Asset Description

Estimated

Useful Years

Infrastructure 10-100

Buildings 50

Building Improvements 20-40

Vehicles 5-15

Machinery & Equipment 7-20

8. Deferred Outflows/Inflows of Resources

In addition to assets, the statement of financial position will sometimes report a separate

section for deferred outflows / inflows of resources. This separate financial statement

element, 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 government only has two items that qualify for reporting in

this category. They are the deferred pension contributions which are required to convert the

fiscal year contributions to the calendar year 2019 and the deferred investment earnings

which represent investment return over/under expectation. Both are reported in the

government-wide statement of net position.

In addition to liabilities, the statement of financial position will sometimes report a 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 government records deferred inflows for the difference in expected and actual actuarial

gains and losses of the pension liability. This item is only recorded on the full accrual basis.

In addition, the government records a deferred inflow, which arises only under a modified

accrual basis of accounting that qualifies for reporting in this category. Accordingly, the

item, unavailable revenue, is reported only in the governmental funds balance sheet. The

governmental funds report unavailable revenues from property taxes, fines and forfeitures

and ambulance fees. These amounts are deferred and recognized as an inflow of resources

in the period that the amounts become available.

9. Net Position Flow Assumption

Sometimes the government will fund outlays for a particular purpose from both restricted

(e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the

amounts to report as restricted – net position and unrestricted – net position in the

government-wide statements, a flow assumption must be made about the order in which

the resources are considered to be applied.


September 30, 2019

45

It is the government’s policy to consider restricted – net position to have been depleted

before unrestricted – net position is applied.

10. 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 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 to have been 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 purpose, committed fund balance is

depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

11. Fund Balance Policies

Fund balance of governmental funds is reported in various categories based on the nature

of any limitations requiring the use of resources for specific purposes. The government itself

can establish limitations on the use of resources through either a commitment (committed

fund balance) or an assignment (assigned fund balance).

The committed fund balance classification includes amounts that can be used only for the

specific purposes determined by a formal action of the government’s highest level of

decision-making authority. The governing council is the highest level of decision-making

authority for the government that can, by adoption of an ordinance prior to the end of the

fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance

remains in place until a similar action is taken (the adoption of another ordinance) to

remove or revise the limitation.

Amounts in the assigned fund balance classification are intended to be used by the

government for specific purposes but do not meet the criteria to be classified as committed.

The governing body (council) has by resolution authorized the finance director to assign

fund balance. The council may also assign fund balance as it does when appropriating fund

balance to cover a gap between estimated revenue and appropriations in the subsequent

year’s appropriated budget. Unlike commitments, assignments generally only exist

temporarily. In other words, an additional action does not normally have to be taken for the

removal of an assignment. Conversely, as discussed above, an additional action is essential

to either remove or revise a commitment. The general fund is the only fund that reports a

positive unassigned fund balance amount. In other governmental funds it is not appropriate

to report a positive unassigned fund balance amount However, in governmental funds

other than the general fund, if expenditures incurred for specific purposes exceed the

amounts that are restricted, committed, or assigned to those purposes, it may be necessary


September 30, 2019

46

to report a negative unassigned fund balance in that fund. A summary of the City's fund

balance policy as adopted by the Council follows:

The City shall maintain an unassigned fund balance between sixty and ninety days of

general fund expenditures, and between sixty and ninety days of utility fund expenditures.

The City will also contribute 5% of sales tax receipts to a "rainy-day" fund for general fund

purposes, and 5% of utility sales to a "capital project" fund for business activity related

capital needs. The City is currently in compliance with these policies.

12. Pensions

For purposes of measuring the net pension liability, deferred outflows of resources and

deferred inflows of resources related to pensions, and pension expense, information about

the Fiduciary Net Position of the Texas Municipal Retirement System (TMRS) and the

Denison Firemen’s Relief and Retirement Fund and additions to/deductions from the

Fiduciary Net Position have been determined on the same basis as they are reported by

pension funds. For this purpose, plan contributions are recognized in the period that

compensation is reported for the employee, which is when contributions are legally due.

Benefit payments and refunds are recognized when due and payable in accordance with the

benefit terms. Investments are reported at fair value. The City uses the General Fund and

Utility Fund to liquidate pension liabilities.

13. Compensated Absences

The liability for compensated absences reported in the government-wide and proprietary

fund statements consist of unpaid, accumulated vacation and sick leave balances. The

liability has been calculated using the vesting method, in which leave amounts for both

employees who currently are eligible to receive termination payments and other employees

who are expected to become eligible in the future to receive such payments upon

termination are included. Vested or accumulated vacation leave and compensated leave of

government-wide and proprietary funds are recognized as an expense and liability of those

funds as the benefits accrue to employees.

The maximum accrual of vacation leave is 240 hours for all non-civil service employees, civil

service fire and police administration employees, and shift police civil service employees.

Fire shift civil service employees may accrue vacation leave up to a maximum of 360 hours.

All civil service police and fire personnel accrue sick leave in accordance with Local

Government Code 143. All non-civil service personnel who meet the definition of

retirement under the Texas Municipal Retirement System at time of separation will receive a

lump sum payment of accrued, but unused sick leave not to exceed 720 hours.


September 30, 2019

47

It is the City's policy to liquidate compensated absences with future revenues rather than

with currently available expendable resources. Accordingly, the City's governmental funds

recognize accrued compensated absences when it is paid.

14. Long-Term Obligations

In the government-wide financial statements, long-term debt and other long-term

obligations are reported as liabilities in the applicable governmental activities statement of

net position. The long-term debt consists primarily of bonds payable and accrued

compensated absences.

Long-term debt for governmental funds is not reported as liabilities in the fund financial

statements until due. The debt proceeds are reported as other financing sources, net of the

applicable premium or discount and payments of principal and interest reported as

expenditures. In the governmental fund types, issuance costs, even if withheld from the

actual net proceeds received, are reported as debt service expenditures. However, claims

and judgments paid from governmental funds are reported as a liability in the fund

financial statements only for the portion due and payable from expendable available

financial resources.

Long-term debt and other obligations, financed by proprietary funds, are reported as

liabilities in the appropriate funds. For proprietary fund types, bond premiums, discounts

and deferred charges are deferred and amortized over the life of the bonds using the

straight-line method. Bonds payable are reported net of the applicable bond premium or

discount.

Assets acquired under the terms of capital leases are recorded as liabilities and capitalized

in the government-wide financial statements at the present value of net minimum lease

payments at inception of the lease. In the year of acquisition, capital lease transactions are

recorded as other financing sources and as capital outlay expenditures in the general fund.

Lease payments representing both principal and interest are recorded as expenditures in the

general fund upon payment with an appropriate reduction of principal recorded in the

government-wide financial statements.

15. Estimates

The preparation of financial statements, in conformity with generally accepted accounting

principles, requires management to make estimates and assumptions that affect the reported

amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date

of the financial statements and the reported amounts of revenues and

expenditures/expenses during the reporting period. Actual results could differ from those

estimates.


September 30, 2019

48

II. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS

A. Explanation of certain differences between the governmental fund balance sheet and the

government-wide statement of net position.

The governmental fund balance sheet includes 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 long-term

liabilities, including bonds, are not due and payable in the current period and, therefore, are

not reported in the funds.

B. Explanation of certain differences between the governmental fund statement of revenues,

expenditures, and changes in fund balances and the government-wide statement of

activities.

The governmental fund statement of revenues, expenditures, and changes in fund balances

includes a reconciliation between net changes in fund balances – total governmental funds

and changes in net position of governmental states that, “the issuance of long-term debt

(e.g., bonds) provides current financial resources to governmental funds, while the

repayment of the principal of long-term debt consumes the current financial resources of

governmental funds. Also, governmental funds report the effect of premiums, discounts,

and similar items when debt is first issued, whereas these amounts are deferred and

amortized in the statement of activities.”

III. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

Annual budgets are adopted on a basis consistent with generally accepted accounting

principles (GAAP) for the general, special revenue, and utility funds. The original budget is

adopted by the City Council prior to the beginning of the year. The legal level of control as

defined by the City Charter is the division level. No funds can be transferred or added to a

budgeted item without Council approval. Appropriations lapse at the end of the year.

Several supplemental budget appropriations were made during the year.


September 30, 2019

49

As of September 30, 2019, expenditures exceeded appropriations at the legal level of

control as follows:

General fund:

General government $ 448,524

Public safety 11,513

Capital outlay 4,307

Interest and fiscal charges 22,546

Cemetery Pre-Pay O&C fund:

Transfers (out) $ 14,165

Federal Forfeitures fund:

Public safety $ 21,341

Parks and Recreation fund:

Transfers (out) $ 202,595

Law Enforcement Forfeitures fund:


Special Events fund:


Fire Training fund:


Police Training fund:

Public safety $ 95

A. Deficit Fund Equity

The community development operating fund had a deficit fund balance of $75,058,

as of September 30, 2019. This deficit will be replenished in the subsequent periods.


September 30, 2019

50

IV. DETAILED NOTES ON ALL FUNDS

A. Deposits and Investments

As of September 30, 2019, the primary government had the following investments:

Investment Type

Certificates of deposit $ 906,254 0.15

External investment pools 15,614,562 0.05

Total value $ 16,520,816

Portfolio weighted average maturity 0.06

Weighted

Average Maturity

Value (Years)

Interest rate risk In accordance with its investment policy, the City manages its exposure to

declines in fair values by limiting the weighted average of maturity not to exceed five years;

structuring the investment portfolio so that securities mature to meet cash requirements for

ongoing operations; monitoring credit ratings of portfolio position to assure compliance

with rating requirements imposed by the Public Funds Investment Act; and invest

operating funds primarily in short-term securities or similar government investment pools.

Credit risk The City’s investment policy limits investments to obligations of the United

States, State of Texas, or their agencies and instrumentalities with an investment quality

rating of not less than “A” or its equivalent, by a nationally recognized investment rating

firm. Other obligations must be unconditionally guaranteed (either express or implied) by

the full faith and credit of the United States Government or the issuing U.S. agency and

investment pools with an investment quality not less than AAA or AAA-m, or equivalent,

by at least one nationally recognized rating service.

Custodial credit risk – deposits In the case of deposits, this is the risk that in the event of a

bank failure, the City’s deposits may not be returned to it. State statutes require that all

deposits in financial institutions be insured or fully collateralized by U.S. government

obligations or its agencies and instrumentalities or direct obligations of Texas or its agencies

and instrumentalities that have a market value of not less than the principal amount of the

deposits. As of September 30, 2019, the market values of pledged securities and FDIC

exceeded bank balances.

Custodial credit risk – investments For an investment, this is the risk that, in the event of the

failure of the counterparty, the City will not be able to recover the value of its investments

or collateral securities that are in the possession of an outside party. The City’s investment

policy requires that it will seek to safekeeping securities at financial institutions, avoiding

physical possession. Further, all trades, where applicable, are executed by delivery versus


September 30, 2019

51

payment to ensure that securities are deposited in the City’s safekeeping account prior to

the release of funds.

TexSTAR

TexSTAR has been established for governmental entities pursuant to the Interlocal

Cooperation Act, Chapter 791 of the Texas Government Code, and the Public Funds

Investment Act, Chapter 2256 of the Texas Government Code and operates in a manner

consistent with the SEC's Rule 2a7 of the Investment Company Act of 1940. TexSTAR's

governing body is a five-member Board consisting of three representatives of participants

and one member designated by each of the co-administrators. The Board holds legal title to

all money, investments, and assets and has the authority to employ personnel, contract for

services, and engage in other administrative activities necessary or convenient to

accomplish the objectives of TexSTAR. Board oversight of TexSTAR is maintained through

daily, weekly, and monthly reporting requirements. TexSTAR is rated AAAm by Standard

& Poor's. The City's fair value position is stated at the value of the position upon

withdrawal. There were no limitations or restrictions on withdrawals.

B. Receivables

The following comprise receivable balances of the primary government at year end:

Property taxes $ 436,843 $ 77,813 $ - $ 514,656

Sales tax 1,009,943 - - 1,009,943

Franchise taxes 55,974 - - 55,974

Hotel taxes 74,168 - - 74,168

Fines 1,036,329 - - 1,036,329

Ambulance 773,529 - - 773,529

Accounts 1,103,254 82,603 2,066,784 3,252,641

Grant receivable 4,761,114 - - 4,761,114

Other receivables 365,999 - - 365,999

Allowance (1,395,527) (3,327) - (1,398,854)

$ 8,221,626 $ 157,089 $ 2,066,784 $ 10,445,499

General Funds

Nonmajor

Total

Governmental

Utility


September 30, 2019

52

C. Notes Receivable

The City’s discretely presented component unit, Denison Community Investment

Corporation (“DCIC”), issues note receivables to local businesses. As of December 31, 2017

(the most recently available date), the outstanding note receivable balances were as follows:

Interest

Description Rate

Greg Guymon RE 4.00% $ 22,882 $ - $ (22,882) $ - $ -

RMJ Likarish - 331 W. Woodward 4.00% - 109,049 - 109,049 9,943

Gentry - Country Java 4.00% 108,345 - (108,345) - -

Tyler Ward - Houston Street 4.00% 29,465 - (5,977) 23,488 6,220

Jay Connelly 4.00% 73,851 - (6,050) 67,801 6,828

Nitia, Inc 4.00% 88,461 - (14,605) 73,856 15,200

Steelcore 4.00% 45,666 - (9,205) 36,461 11,322

Parker - Ivahoe Ale House 5.00% 207,870 - (19,167) 188,703 30,288

Parker - Ivahoe Ale House (add'l loan) 5.00% 32,839 - (3,036) 29,803 4,797

Joyce Sturgess Loan 4.00% 9,823 - (9,823) - -

Bent Leaf 4.00% 29,360 - (4,001) 25,359 4,535

Gaytan Restaurants 4.00% 132,801 - (22,425) 110,376 25,396

Total notes receivable $ 781,363 $ 109,049 $ (225,516) $ 664,896 $ 114,529

One Year

Amounts

Beginning Ending Due within

Balance Additions Reductions Balance

All notes issued by DCIC are fully secured by either real estate property or personal

property, such as machinery and equipment which all have uniform commercial code

filings with the state.

D. Grant Receivable

On 11/16/2015, the City entered into a public/private partnership agreement to develop and

build a sports complex and related facilities, with the Texoma Health Foundation (THF).

The City agreed to contribute approximate $8 million to the project. THF is to contribute

$7,935,192 over 10 years starting in 2016. Payments are split equally in the amount of

$793,519. The payments commenced in January of 2016 and terminate in January of 2025.

The City received the third payment of $793,519 during the year, leaving a remaining

receivable balance of $4,761,114.


September 30, 2019

53

E. Capital Assets

A summary of changes in governmental activities capital assets for the year end was as

follows:

Capital assets, not being depreciated:

Land $ 3,462,608 $ - $ - $ 3,462,608

Construction in progress 18,591,030 1,500,962 (19,070,171) 1,021,821

22,053,638 1,500,962 (19,070,171) 4,484,429

Capital assets, being depreciated:

Buildings and improvements 12,682,379 73,842 16,528,086 29,284,307

Infrastructure 31,917,497 234,217 - 32,151,714

Equipment 14,692,398 2,124,844 413,951 17,231,193

59,292,274 2,432,903 16,942,037 78,667,214

Less accumulated depreciation

Buildings and improvements (4,216,143) (611,873) 3,695 (4,824,321)

Infrastructure (15,234,145) (820,123) - (16,054,268)

Equipment (8,755,312) (355,899) 230,316 (8,880,895)

Total accumulated depreciation (28,205,600) (1,787,895) 234,011 (29,759,484)

Net capital assets being depreciated 31,086,674 645,008 17,176,048 48,907,730

$ 53,140,312 $ 2,145,970 $ (1,894,123) $ 53,392,159

Beginning Decreases/ Ending

Balances Increases

Total Capital Assets

Total capital assets not being depreciated

Total capital assets being depreciated

BalancesReclassifications

Depreciation was charged to governmental functions as follows:


Public safety 542,411

Public works 678,799

Community services 393,425

$ 1,787,895Total Governmental Activities Depreciation Expense


September 30, 2019

54

A summary of changes in business-type activities capital assets for the year end was as

follows:

Capital assets, not being depreciated:

Land $ 543,719 $ - $ - $ 543,719

Construction in progress 5,877,089 1,635,027 (5,431,778) 2,080,338

Total capital assets not being depreciated 6,420,808 1,635,027 (5,431,778) 2,624,057

Capital assets, being depreciated:

Buildings and improvements 24,092,742 7,174 1,786,269 25,886,185

Infrastructure 27,972,433 - 3,778,831 31,751,264

Machinery and equipment 14,412,193 307,775 1,630,452 16,350,420

Total capital assets being depreciated 66,477,368 314,949 7,195,552 73,987,869

Less accumulated depreciation

Buildings and improvements (7,475,067) (552,761) - (8,027,828)

Infrastructure (13,654,137) (452,731) - (14,106,868)

Machinery and equipment (6,855,951) (469,455) 76,470 (7,248,936)

Total accumulated depreciation (27,985,155) (1,474,947) 76,470 (29,383,632)

Net capital assets being depreciated 38,492,213 (1,159,998) 7,272,022 44,604,237

$ 44,913,021 $ 475,029 $ 1,840,244 $ 47,228,294

Reclassifications Balances

Decreases/ EndingBeginning

Total Capital Assets

Balances Increases

Depreciation was charged to business-type activities as follows:

Water $ 926,109

Sewer 548,838

$ 1,474,947Total Business-Type Activities Depreciation Expense


September 30, 2019

55

F. Other Long-term Liabilities

Compensated absences represent the estimated liability for employees' accrued compensatory

time and vacation leave for which employees are entitled to be paid upon termination. The

following summarizes the changes in the compensated absences balances of the primary

government during the year. In general, the City uses the general and utility funds to liquidate

governmental and business-type activities compensated absences, respectively.

Governmental Activities:

Compensated Absences $ 2,587,399 $ 1,483,794 $ (1,328,776) $ 2,742,417 $ 1,408,387

Total Governmental Activities $ 2,587,399 $ 1,483,794 $ (1,328,776) $ 2,742,417 $ 1,408,387

Business-Type Activities:

Compensated Absences $ 620,461 $ 266,065 $ (340,492) $ 546,034 $ 299,649

Total Business-Type Activities $ 620,461 $ 266,065 $ (340,492) $ 546,034 $ 299,649

Amounts

Due Within

One Year

Beginning

Balance Additions Reductions

Ending

Balance

The following is a summary of changes in the City’s discretely presented component unit’s,

Denison Business and Industrial Corporation, compensated absences for the year ended

September 30, 2019.

Component Unit Activities:

Compensated Absences $ 72,396 $ 23,127 $ (18,432) $ 77,091 $ 7,709

Total Component Unit Activities $ 72,396 $ 23,127 $ (18,432) $ 77,091 $ 7,709

Amounts

Due Within

One Year

Beginning


Ending

Balance

The following is a summary of changes in the landfill post-closure costs liability of the primary

government for the year ended September 30, 2019.


Landfill post-closure costs $ 118,964 $ - $ (32,128) $ 86,836 $ 30,404

Total Governmental Activities $ 118,964 $ - $ (32,128) $ 86,836 $ 30,404

Amounts

Due Within

One Year

Beginning


Ending

Balance


September 30, 2019

56

G. Long-term Debt

The following is a summary of changes in the City’s total governmental long-term liabilities for

the year ended. In general, the City uses the debt service fund to liquidate governmental long-

term liabilities.


Bonds, notes and other

payables:

General obligation bonds $ 2,556,200 $ - $ (473,800) $ 2,082,400 $ 380,000

Certificates of obligation 14,369,982 - (1,273,599) 13,096,383 1,305,742

Tax notes 635,000 - (210,000) 425,000 210,000

Less deferred amounts:

For issuance premiums 341,245 - (38,628) 302,617 -

17,902,427 - (1,996,027) 15,906,400 1,895,742

Other liabilities:

Capital leases payable 2,455,636 1,887,500 (530,098) 3,813,038 667,503

Notes payable 1,389,000 - (169,000) 1,220,000 170,000

$ 21,747,063 $ 1,887,500 $ (2,695,125) $ 20,939,438 $ 2,733,245

Long-term liabilities due in more than one year $ 18,206,193

Business-Type Activities:

Bonds, notes and other

payables:

General obligation bonds $ 748,800 $ 3,060,000 $ (351,200) $ 3,457,600 $ 375,000

Certificates of obligation 31,090,022 5,255,000 (4,771,401) 31,573,621 1,679,258


For issuance discount (31,506) - 18,474 (13,032) -

For issuance premiums 1,455,795 801,311 (168,407) 2,088,699 -

33,263,111 9,116,311 (5,272,534) 37,106,888 2,054,258

Other liabilities:

Capital leases payable 353,968 - (48,336) 305,632 48,981

$ 33,617,079 $ 9,116,311 $ (5,320,870) $ 37,412,520 $ 2,103,239

Long-term liabilities due in more than one year $ 35,309,281

Total Business-Type Activities

Additions


Beginning

Balance

Amounts

Reductions

Ending

Balance

Due within

One Year

Long-term liabilities applicable to the City’s governmental activities are not due and payable

in the current period and accordingly, are not reported as fund liabilities in the governmental

funds. Interest on long-term debt is not accrued in governmental funds, but rather is

recognized as an expenditure when due. In addition, capital leases are secured by the

underlying asset. In the event of default, the lender may demand immediate payment or take

possession of the asset. As of September 30, 2019, the total net carrying value of the capital

lease assets for governmental activities and business-type activities were $4,833,679 and

$338,739, respectively.


September 30, 2019

57

Long-term debt at year end was comprised of the following debt issues:

General Obligation Bonds:

$3,442,800 General Obligation Refunding Bonds, Series 2013,

due in installments through 2025, interest at 2.75% $ 2,082,400 $ 657,600 $ 2,740,000

$3,060,000 General Obligation Refunding Bonds, Series 2019,

due in installments through 2028, interest at 3% to 5% - 2,800,000 2,800,000

$ 2,082,400 $ 3,457,600 $ 5,540,000

Certificates of Obligation:

$7,000,000 Comb Tax and Revenue Certificates of Obligation,

Series 2010, due in annual installments through 2029,

interest at 3% $ - $ 4,345,000 $ 4,345,000



interest at 3% - 4,135,000 4,135,000



interest at 3-4% - 5,540,000 5,540,000

$2,240,000 Comb Tax and Surplus Revenue Certificates of Obligation,


interest at 2.75% 1,700,000 - 1,700,000



interest at 1.89% 5,395,000 - 5,395,000



interest at 3-5% - 1,570,000 1,570,000

$2,855,000 Combination Tax & Limited Surplus Revenue

Certificates of Obligation, Series 2017, through 2027, interest at 2.16% 2,340,000 - 2,340,000

$2,945,000 Combination Tax & Revenue Cerificates of Obligation,

Series 2017, through 2037, interest at 3% 2,741,383 - 2,741,383

$1,000,000 Comb Tax & Limited Surplus Revenue Certificates of Obligation,

Series 2018A, due through 2028, interest at 2.89% 920,000 - 920,000

$3,925,000 Combination Tax & Revenue Cerificates of Obligation,

Series 2017, through 2037, interest at 3% - 3,653,621 3,653,621


Series 2018, due through 2038, interest at 3.12% to 5.54% - 7,075,000 7,075,000


Series 2019, due through 2039, interest at 3% to 4% - 5,255,000 5,255,000

$ 13,096,383 $ 31,573,621 $ 44,670,004

Tax Notes

$1,435,000 Tax Note, Series 2014, due in installments

through 2021, interest at 1.24% $ 425,000 $ - $ 425,000

$ 425,000 $ - $ 425,000

TotalActivities

Total Tax Notes

Total Certificates of Obligation

Business -

Governmental Type

Total General Obligation Bonds

Activities


September 30, 2019

58


Discounts and premiums $ 302,617 $ 2,075,667 $ 2,378,284

Notes Payable:

$1,550,000 Section 108 HUD loan, due in annual installments

through 2026, interest is variable 1,220,000 - 1,220,000

Capital Leases Payable:

$373,500 Capital lease payable to JP Morgan Chase, due in annual

installments of $41,746 through 2022, interest at 2.42% 119,413 - 119,413





$1,600,000 Capital lease payable to BB&T, due in annual






$135,186 Capital lease payable to Bankcorp South, due in annual


$259,366 Capital lease payable to Ricoh, due in monthly

installments of $4,323 through 2023, interest at 0% 101,585 101,585 203,170

$122,581 Capital lease payable to Ferno, due in annual

installments of $40,860 through 2020, interest at 0% 40,860 - 40,860

$210,000 Capital lease payable to BB&T, due in annual


$1,677,500 Capital lease payable to JP Morgan Chase, due in annual

installments of $194,919 through 2029, interest at 3.05% 1,677,500 - 1,677,500

$251,326 Capital lease payable to BB&T, due in annual

installments of $28,921 through 2027, interest at 2.88% - 204,047 204,047

3,813,038 305,632 4,118,670

$ 20,939,438 $ 37,412,520 $ 58,351,958

Business -

Total Capital Leases Payable

Total Debt

Total

Governmental Type



September 30, 2019

59

The annual requirements to amortize general obligation bonds outstanding at year ending

were as follows:

General Obligation Bonds

Year ending

September 30,

2020 $ 380,000 $ 65,835 $ 375,000 $ 145,578 $ 755,000 $ 211,413

2021 395,200 54,435 399,800 129,228 795,000 183,663

2022 311,600 42,579 383,400 111,734 695,000 154,313

2023 323,000 33,231 402,000 94,532 725,000 127,763

2024 330,600 23,541 419,400 76,472 750,000 100,013

2025 342,000 11,970 433,000 64,155 775,000 76,125

2026 - - 330,000 52,250 330,000 52,250

2027 - - 350,000 35,750 350,000 35,750

2028 - - 365,000 18,250 365,000 18,250

$ 2,082,400 $ 231,591 $ 3,457,600 $ 727,949 $ 5,540,000 $ 959,540


Principal Interest

TotalBusiness-Type Activities

Principal InterestPrincipal Interest

The annual requirements to amortize certificates of obligations outstanding at year ending were as

follows:

Year ending

September 30,

2020 $ 1,305,742 $ 297,988 $ 1,679,258 $ 1,196,019 $ 2,985,000 $ 1,494,007

2021 1,330,029 270,001 1,804,971 1,069,259 3,135,000 1,339,260

2022 1,364,316 241,364 1,765,684 998,875 3,130,000 1,240,239

2023 1,393,603 212,032 1,841,397 927,694 3,235,000 1,139,726

2024 1,420,746 181,263 1,929,254 848,147 3,350,000 1,029,410

2025 1,455,033 148,973 1,999,967 767,583 3,455,000 916,556

2026 1,494,320 115,789 2,085,680 688,023 3,580,000 803,812

2027 688,606 89,714 2,161,394 606,804 2,850,000 696,518

2028 390,036 74,368 2,254,964 522,110 2,645,000 596,478

2029 284,323 63,679 1,815,677 433,499 2,100,000 497,178

2030 291,467 54,717 1,338,533 373,911 1,630,000 428,628

2031 300,753 45,833 1,384,247 325,070 1,685,000 370,903

2032 312,183 36,639 1,437,817 277,459 1,750,000 314,098

2033 321,470 27,135 1,483,530 229,793 1,805,000 256,928

2034 175,757 19,676 1,529,243 181,663 1,705,000 201,339

2035 184,330 14,275 1,585,670 132,677 1,770,000 146,952

2036 188,617 8,681 1,171,383 89,572 1,360,000 98,253

2037 195,052 2,926 1,084,952 54,792 1,280,004 57,718

2038 - - 850,000 24,803 850,000 24,803

2039 - - 370,000 5,781 370,000 5,781

$ 13,096,383 $ 1,905,053 $ 31,573,621 $ 9,753,534 $ 44,670,004 $ 11,658,587

Principal Interest Principal

Governmental Activities Business-Type Activities

Principal Interest Interest

Total


September 30, 2019

60

The annual requirements to amortize tax notes outstanding at year ending were as follows:

Tax Notes

Year ending

September 30,

2020 $ 210,000 $ 3,968 $ 213,968

2021 215,000 1,333 216,333

$ 425,000 $ 5,301 $ 430,301


Principal Interest Total

The annual requirements to amortize capital leases outstanding at year ending were as follows:

Capital Leases Payable

Year ending

September 30,

2020 $ 667,503 $ 82,653 $ 48,981 5,877 $ 716,484 $ 88,530

2021 533,449 86,319 49,645 5,213 583,094 91,532

2022 547,101 72,668 50,327 4,530 597,428 77,198

2023 517,218 58,644 48,868 3,828 566,086 62,472

2024 438,292 45,244 25,816 3,105 464,108 48,349

2025 269,175 33,458 26,559 2,361 295,734 35,819

2026 230,294 25,671 27,324 1,597 257,618 27,268

2027 237,337 18,627 28,112 810 265,449 19,437

2028 183,552 11,367 - - 183,552 11,367

2029 189,117 5,769 - - 189,117 5,769

$ 3,813,038 $ 440,420 $ 305,632 $ 27,321 $ 4,118,670 $ 467,741

Principal


Principal Interest


Principal Interest

Total

Interest

The annual requirements to amortize notes payable outstanding at year ending were as

follows:

Notes Payable

Year ending

September 30,

2020 $ 170,000 $ 31,671 $ 201,671

2021 170,000 27,258 197,258

2022 171,000 22,845 193,845

2023 173,000 18,406 191,406

2024 175,000 13,915 188,915

2025 178,000 9,372 187,372

2026 183,000 4,751 187,751

$ 1,220,000 $ 128,218 $ 1,348,218




September 30, 2019

61

The following is a summary of changes in the City’s discretely presented component unit’s,

Denison Business and Industrial Corporation, long-term liabilities for the year ended

September 30, 2019.

Component Unit Activity

Notes payable $ 1,383,173 $ - $ (491,172) $ 892,001 $ 521,001

Compensated absences 157,335 28,197 (110,000) 75,532 50,532

$ 1,540,508 $ 28,197 $ (601,172) $ 967,533 $ 571,533

Long-term liabilities due in more than one year $ 396,000

Due within

One YearAdditions


Beginning

Balance

Amounts

Reductions

Ending

Balance

Notes Payable

Year ending

September 30,

2020 $ 521,001 $ 28,649 $ 549,650

2021 70,000 9,576 79,576

2022 72,000 7,553 79,553

2023 74,000 5,472 79,472

2024 76,000 3,334 79,334

2025 79,000 1,126 80,126

$ 892,001 $ 55,710 $ 398,061

Component Unit Activities


Landfill Closure and Post-closure Care Costs

The Cities of Sherman and Denison contracted with the Greater Texoma Utility Authority

(“GTUA”) for use of the Dripping Springs landfill. The City owns the permitted area but

GTUA is responsible for the operation and maintenance. This landfill was considered full at

September 30, 1993, for financial reporting purposes. State and Federal laws and regulations

require the City of Denison to place a final cover on its Dripping Springs landfill site and to

perform certain maintenance and monitoring functions at the site for up to thirty years after

closure. The City is financially obligated for a portion of these costs related to gas and ground

water monitoring. During the current year, the City paid $13,348 toward the post-closure costs.

These costs are expected to significantly decline in the near future. The City has recorded a

liability of $86,836 for the future costs, representing an estimated 4 years of remaining

monitoring, including an assumed 2.5% inflation rate.


September 30, 2019

62

H. Advanced Refunding

On April 1, 2019, the City issued $3,060,000 in general obligation refunding bonds with an

interest rate of 5%, and a premium on bond refunding of $370,598. The proceeds were used to

advance refund $3,325,000 of outstanding 2008 certificate of obligation bonds which had an

interest rate of 4.7%-5%. The net proceeds of $3,365,533 (after payment of $77,467 in issuance

costs) were deposited with an escrow agent to provide funds for the future debt service

payment on the refunded bonds. As a result, the obligations are considered defeased and the

liability for those bonds have been removed from the statement of net position.

The reacquisition price exceeded the net carrying amount of the old debt by $46,740. This

amount is being amortized over the remaining life of the refunding debt. This advance

refunding reduced its total debt service payments by $432,414 and resulted in an economic gain

(difference between the present values of the debt service payments on the old and new debt)

of $388,054.

I. Deferred Charges on Refunding

A deferred charge resulting from the issuance of the 2019 General Obligation Refunding Bonds

has been recorded as a deferred outflow of resources and is being amortized to interest

expense over the term of the refunded debt. The current year balance for business-type

activities totaled $42,066. Current year amortization for business-type activities was $4,674.

J. Interfund Transactions

Transfers between the primary government funds during the 2019 year were as follows:

Transfer Out:

Utility fund 1,641,493 - 205,000 1,846,493

General - 367,731 296,318 664,049

Nonmajor funds 272,430 - 168,682 441,112

Total $ 1,913,923 $ 367,731 $ 670,000 $ 2,951,654

Total

General

Transfer In:

General Bond Nonmajor

During the year, transfers are used to allocate administrative and overhead costs between

funds, and to reimburse funds for costs incurred on another fund’s behalf.

Further, capital was transferred from the governmental-activities to the proprietary fund in

the amount of $1,841,469.


September 30, 2019

63

The compositions of interfund balances as of year end were as follows:

Due from other funds

(Receiving Fund):

General Fund 75,965

Total $ 75,965

Advances from other funds

(Receiving Fund):

General Fund 220,979

Total $ 220,979

Nonmajor

Advances to other

funds (Payable Fund):

Nonmajor

Due to other funds

(Payable Fund):

The purpose of interfund receivables and payables is to loan cash between funds. All due

to/from balances are expected to be settled within the next year.

In fiscal year ending September 30, 2019, the general fund advanced the parks and

recreation fund $220,979 paid towards a parks grant. The parks and recreation fund will pay

back the general fund over the next three years.

K. Restricted Net Position

The City records restricted net position on amounts with externally imposed restrictions

(e.g., through debt covenants or by grantors) or restrictions imposed by law through

constitutional provisions or enabling legislation. Total restricted net position for the primary

government was $1,645,398. Of which, $19,185 is restricted by enabling legislation.

V. OTHER INFORMATION

A. 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 for which the City

participates along with over 2,800 other entities in the Texas Municipal League’s

Intergovernmental Risk Pools. The Pool purchases commercial insurance at group rates for

participants in the Pool. The City has no additional risk or responsibility to the Pool outside

of the payment of insurance premiums. The City has not significantly reduced insurance

coverage or had settlements which exceeded coverage amounts for the past three years.


September 30, 2019

64

B. Contingent Liabilities

Amounts received or receivable from granting agencies are subject to audit and adjustment

by grantor agencies, principally the federal government. Any disallowed claims, including

amounts already collected, may constitute a liability of the applicable funds. The amounts

of expenditures which may be disallowed by the grantor cannot be determined at this time

although the City expects such amounts, if any, to be immaterial.

Liabilities 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 claims that have been

incurred but not reported. Claim liabilities are calculated considering the effects of

inflation, recent claim settlement trends, including frequency and amount of payouts, and

other economic and social factors.

C. Arbitrage

The Tax Reform Act of 1986 instituted certain arbitrage consisting of complex regulations

with respect to issuance of tax-exempt bonds after August 31, 1986. Arbitrage regulations

deal with the investment of tax-exempt bond proceeds at an interest yield greater than the

interest yield paid to bondholders. Generally, all interest paid to bondholders can be

retroactively rendered taxable if applicable rebates are not reported and paid to the Internal

Revenue Service at least every five years for applicable bond issues. Accordingly, there is

the risk that if such calculations are not performed correctly, a substantial liability to the

City could result. The City does anticipate that it will have an arbitrage liability and

performs annual calculations to estimate this potential liability. The City will also engage

an arbitrage consultant to perform the calculations in accordance with Internal Revenue

Service’s rules and regulations, if indicated.

D. Defined Benefit Pension Plans

Texas Municipal Retirement System

1. Plan Description

The City of Denison, Texas participates as one of 887 plans in the nontraditional, joint

contributory, hybrid defined benefit pension plan administered by the Texas Municipal

Retirement System (TMRS). 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 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)


September 30, 2019

65

of the Internal Revenue Code. TMRS issues a publicly available comprehensive annual

financial report (CAFR) that can be obtained at www.tmrs.com.

All eligible employees of the city are required to participate in TMRS.

2. Benefits Provided

TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by

the governing body of the city, within the options available in the state statutes governing

TMRS.

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 12, 24, or 36 monthly payments, which cannot

exceed 75% of the member’s deposits and interest.

The plan provisions are adopted by the governing body of the City, within the options

available in the state statutes governing TMRS.


September 30, 2019

66

Plan provisions for the City were as follows:

Plan Year 2018 Plan Year 2017

Employee deposit rate 7% 7%

Matching ratio (city to

employee)

2 to 1 2 to 1

Years required for vesting 5 5

Service retirement eligibility

(expressed as age / years of

service)

60/5, 0/20 60/5, 0/20

Updated service credit 100% Repeating Transfers 100% Repeating Transfers

Annuity increase (to retirees) 30% of CPI 30% of CPI

Employees covered by benefit terms

At the December 31, 2018 valuation and measurement date, the following employees were

covered by the benefit terms:

Inactive employees or beneficiaries currently receiving benefits 159

Inactive employees entitled to but not yet receiving benefits 114

Active employees 228

Total 501

3. Contributions

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 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.

Employees for the City of Denison, Texas were required to contribute 7% of their annual

gross earnings during the fiscal year. The contribution rates for the City of Denison, Texas

were 12.74% and 12.17% in calendar years 2018 and 2019, respectively. The City’s

contributions to TMRS for the year ended September 30, 2019, were $1,431,847, and were

equal to the required contributions.

4. Net Pension Liability

The City’s Net Pension Liability (NPL) was measured as of December 31, 2018, and the Total

Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an

actuarial valuation as of that date.


September 30, 2019

67

Actuarial assumptions

The Total Pension Liability in the December 31, 2018 actuarial valuation was determined

using the following actuarial assumptions:

Inflation 2.5% per year

Overall payroll growth 3.0% per year

Investment Rate of Return 6.75% 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 Tables with Blue Collar Adjustment, 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 Combined Healthy Mortality Tables with Blue Collar Adjustment are used

with males rates multiplied by 109% and female rates multiplied by 103% with a 3-year set-

forward for both males and females. In addition, a 3% minimum mortality rate is applied to

reflect the impairment for younger members who become disabled. The rates are projected

on a fully generational basis by scale BB to account for future mortality improvements

subject to the 3% floor.

The actuarial assumptions were developed primarily from the actuarial investigation of the

experience of TMRS over the four year period from December 31, 2010 to December 31,

2014. They were adopted in 2015 and first used in the December 31, 2015 actuarial valuation.

The post-retirement mortality assumption for healthy annuitants and Annuity Purchase

Rate (APRs) are based on the Mortality Experience Investigation Study covering 2009

through 2011 and dated December 31, 2013. In conjunction with these changes first used in

the December 31, 2013 valuation, the System adopted the Entry Age Normal actuarial cost

method and a one-time change to the amortization policy. 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 investments was determined using a

building-block method in which best estimate ranges of expected 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. In determining their best estimate of a

recommended investment return assumption under the various alternative asset allocation

portfolios, GRS focused on the area between (1) arithmetic mean (aggressive) without an

adjustment for time (conservative) and (2) the geometric mean (conservative) with an

adjustment for time (aggressive).


September 30, 2019

68

The target allocation and best estimates of real rates of return for each major asset class in

fiscal year 2019 are summarized in the following table:

Asset Class Target Allocation Long-Term Expected Real

Rate of Return (Arithmetic)

Domestic Equity 17.5% 4.30%

International Equity 17.5% 6.10%

Core Fixed Income 10.0% 1.00%

Non-Core Fixed Income 20.0% 3.39%

Real Return 10.0% 3.78%

Real Estate 10.0% 4.44%

Absolute Return 10.0% 3.56%

Private Equity 5.0% 7.75%

Total 100.0%

Discount Rate

The discount rate used to measure the Total Pension Liability was 6.75%. The projection of

cash flows used to determine the discount rate assumed that employee and employer

contributions will be made 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.

Changes in the Net Pension Liability

Balance at 12/31/17 $ 63,996,301 $ 61,685,295 $ 2,311,006

Changes for the year:

Service cost 1,698,110 - 1,698,110

Interest 4,259,941 - 4,259,941

Difference between expected and

actual experience 15,566 - 15,566

Changes of assumptions - - -

Contributions – employer - 1,410,223 (1,410,223)

Contributions – employee - 775,143 (775,143)

Net investment income - (1,846,896) 1,846,896

Benefit payments, including

refunds of emp. contributions (3,470,248) (3,470,248) -

Administrative expense - (35,711) 35,711

Other changes - (1,866) 1,866

Net changes 2,503,369 (3,169,355) 5,672,724

Balance at 12/31/18 $ 66,499,670 $ 58,515,940 $ 7,983,730

Total Pension

Liability (a)

Plan Fiduciary

Net Position (b)

Net Pension

Liability (a) – (b)


September 30, 2019

69

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following presents the net pension liability of the City, calculated using the discount

rate of 6.75%, as well as what the City’s net pension liability would be if it were calculated

using a discount rate that is 1-percentage-point lower (5.75%) or 1-percentage-point higher

(7.75%) than the current rate:

$ 16,486,777 $ 7,983,730 $ 949,270

1% Decrease

5.75

Current Single Rate

Assumption 6.75%

1% Increase

7.75%

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.

5. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of

Resources Related to Pensions

For the year ended September 30, 2019, the city recognized pension expense for this plan of

$2,293,725.

At September 30, 2019, the City reported deferred outflows of resources and deferred

inflows of resources related to pensions from the following sources:

Differences between expected and actual

economic experience $ - $ (231,780)

Changes in actuarial assumptions 5,318 -

Difference between projected and

investment earnings 3,177,103 -

Contributions subsequent to the

measurement date 1,066,649 -

Total $ 4,249,070 $ (231,780)

Deferred Outflows

of Resources

Deferred (Inflows)

of Resources

The City reported $1,066,649 as deferred outflows of resources related to pensions resulting

from contributions subsequent to the measurement date that will be recognized as a

reduction of the net pension liability for the year ending September 30, 2020.


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70

Other amounts reported as deferred outflows and inflows of resources related to pensions

will be recognized in pension expense as follows:

Year ended December 31:

2019 $ 1,010,222

2020 324,553

2021 413,737

2022 1,202,129

2023 -

Thereafter -

$ 2,950,641

Denison Firemen’s Relief and Retirement Fund

6. Plan Description

The Board of Trustees of the Fund is the administrator of the Fund, a single-employer

defined benefit pension plan. The Fund is an independent entity for financial reporting

purposes. The City of Denison, Texas is the only contributing employer. The members of the

Fund also contribute to the Fund.

The Fund is established under the authority of the Texas Local Fire Fighters’ Retirement Act

(“TLFFRA”). The Fund is administered by a Board of Trustees which is made up of three

members elected from and by the Fund members, two representatives of the City of

Denison, Texas, and two citizen members.

The Fund covers current and former fire fighters of the City of Denison, Texas, as well as

certain beneficiaries of current and former fire fighters. The Fund is open to new entrants.

An actuarial valuation of the Fund is performed every two years.

7. Benefits Provided

Effective October 1, 2004, the City of Denison contributes 15 percent of each Fund member’s

total pay (including regular, longevity, overtime pay and pay received during a period of

sick leave or vacation, but excluding lump sum distributions for unused sick leave or

vacation). Fund members contribute to the fund at a rate of 12 percent of pay. Fund

members receive a credit for service for the period during which they pay into, and keep on

deposit in the fund, the contributions required by the Fund. Retirement, death, disability,

and termination benefits are calculated based upon a member’s average salary for the 24

consecutive months that produce the highest average.


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71

All active fire fighters of the City of Denison, Texas are members of the Denison Firemen’s

Relief and Retirement Fund.

The City contributed 100% toward the required postemployment benefit cost for current

and two preceding years.

Service Retirement Benefits

A member is eligible for service retirement benefits upon completion of 20 years of service

and attainment of age 50. A member who retires under the service retirement provisions of

the Fund will receive a monthly benefit equal to the sum of (a) and (b), below, where: (a)

Equals 2.65 percent of the member’s highest 24-month average salary, multiplied by the

member’s years of credited service not in excess of 20, and (b) Equals 3.00 percent of the

member’s highest 24-month average salary multiplied by the member’s years of credited

service in excess of 20.

The maximum service retirement benefit is $5,150 per month.

Service retirement benefits are payable for the member’s lifetime. In the event the member’s

death precedes that of his spouse, three-fourths of the member’s pension will be continued

to the member’s spouse for the spouse’s lifetime. Monthly benefits to a widowed spouse

upon remarriage will continue subject to the other terms of the Fund.

Disability Benefits

An active member who becomes disabled before the date he qualifies for service retirement

will receive a monthly disability benefit equal to 50 percent of the member’s average

monthly compensation. However, if a member is eligible for a service retirement benefit, he

will receive the service retirement benefit to which he is entitled instead of the disability

benefit. The maximum disability benefit is $5,150 per month.

If a member begins drawing disability benefits prior to age 50, but after the date he has

completed 20 years of service, monthly disability benefits will end at age 50. Starting at age

50, the member will receive the amount of monthly termination benefit, described below,

which the member has accumulated as of the date his service is terminated due to disability.

Disability benefits are payable in the same form as service retirement benefits. However,

disability benefits stop if the member recovers to the point that he no longer meets the

definition of disability under the Fund.


September 30, 2019

72

Employees covered by benefit terms

At the December 31, 2018 measurement date, the following employees were covered by the

benefit terms:

Inactive employees or beneficiaries currently receiving benefits 54

Inactive employees entitled to but not yet receiving benefits 8

Active employees 52

Total 114

8. Contributions

The contribution rate for employees is 12% of employee gross earnings, and the City

matching percentage 15%, both as adopted by the governing body of the Fund. The City’s

contributions to the fund for the year ended September 30, 2019, were $513,916, and were

equal to the required contributions.

9. Net Pension Liability

The City’s net pension liability was measured as of December 31, 2018, and the total pension

liability used to calculate the net pension liability was determined by an actuarial valuation

as of December 31, 2018.

Total pension liability $ 23,290,447

Plan fiduciary net position ___ 16,588,602

City’s net pension liability $ 6,701,845

Plan fiduciary net position as a percentage

of the total pension liability 71.22%

Actuarial Assumptions

The total pension liability in the December 31, 2017 actuarial valuation, measurement date of

December 31, 2018, was determined using the following actuarial methods and assumptions,

applied to all periods included in the measurement:

Actuarial cost method Entry Age Normal Actuarial cost method

Amortization method Open period, level percentage of pay

Asset valuation method The fair value of assets plus 20% of the

unrecognized gains & losses from each of the past

four years. The resulting value is further limited to

be no less than 80% and no greater than 110% of the

fair value of assets.


September 30, 2019

73

Discount rate 7.50% per annum, compounded annually

Compensation increases for 5.00% per year, compounded annually

Individual members

Increases in total payroll 3.50% per year, compounded annually

Marital status

a. Proportion married Males: 100%, Females: 100%

b. Difference in ages Actual age difference are used for married

members. Unmarried members are assumed to be

married at retirement, Males are assumed to be two

years older than their spouses.

Contribution rates Rates in effect are assumed to remain constant for

future years

Mortality rates RP-2000 combined healthy tables for males and

females with mortality improvement projected to

valuation date using Scale AA.

Termination rates Age Termination Rate

25 4.97%

35 2.49%

45 0.62%

55 0.00%

Disability Rates developed from 1985 Society of Actuaries

Disability Table Study using Class 1 male rates with

a 90-day elimination period. Specimen rates are:

Age Termination Rate

25 0.111%

35 0.152%

45 0.335%

55 0.858%

Assumed death benefit to children Each member is assumed to have two children. The

first child is assumed to have been born when the

member was age 25. The second child is assumed to

be two years younger. It is also assumed that

benefits will be paid when each child reaches the

age of 18.


September 30, 2019

74

Assumed contribution rates

a. Members 12.00% of compensation

b. City 15.00% of compensation

Assumed form of payment Members are assumed to receive a joint and 75%

contingent service retirement benefit, which is the

only form of service retirement benefit in the plan.

Discount Rate

The discount rate used to measure the total pension liability was 7.50 percent. The

projection of cash flows used to determine the discount rate assumed that plan member

contributions will be made at the current contribution rate and that City contributions will

be made at rates equal to the difference between actuarially determined contribution rates

and the member rate. Based on those assumptions, the pension plan’s fiduciary net position

was projected to be available to make all projected future benefit payments of current plan

members. 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.

The long-term expected rate of return on pension plan investments was determined using a

building-block method in which best-estimate ranges of expected 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. Best estimates of arithmetic real rates of return

for each major asset class included in the pension plan’s target asset allocation as of

September 30, 2019 (see the discussion of the pension plan’s investment policy) are

summarized in the following table:

Asset Class Target Allocation

Long-Term Expected Real

Rate of Return (Arithmetic)

Cash and cash equivalents 1.65% 0.0000%

Fixed Income 3.80% 0.0390%

Equities 76.34% 5.0426%

Real Estate 18.21% 1.0466%

Total 100.0%


September 30, 2019

75

Changes in the Net Pension Liability

Balance at 12/31/17 $ 22,683,336 $ 17,725,070 $ 4,958,266

Changes for the year:

Service cost 487,429 - 487,429

Interest 1,679,321 - 1,679,321

Difference between expected and

actual experience - - -

Changes of assumptions - - -

Contributions – employer - 504,819 (504,819)

Contributions – employee - 404,045 (404,045)

Net investment income - (461,618) 461,618

Benefit payments, including

refunds of emp. contributions (1,559,639) (1,559,639) -

Administrative expense - (24,075) 24,075

Other changes - - -

Net changes 607,111 (1,136,468) 1,743,579

Balance at 12/31/18 $ 23,290,447 $ 16,588,602 $ 6,701,845

Total Pension

Liability (a)

Plan Fiduciary Net

Position (b)

Net Pension

Liability (a) – (b)

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following presents the net pension liability of the City, calculated using the discount

rate of 7.50% as well as what the City’s net pension liability would be if it were to be

calculated using the discount rate that is 1-percentage point lower (6.50%) or 1-percentage

point higher (8.50%) than the current rate:

$ 9,314,446 $ 6,701,845 $ 4,503,986

1% Decrease

6.50%

Current Single Rate

Assumption 7.50%

1% Increase

8.50%

Pension Plan Fiduciary Net Position

Detailed information about the pension plan’s Fiduciary Net Position is available in a

separately-issued financial report. That report may be obtained from the finance

department of the City.

10. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of

Resources Related to Pensions

For the year ended September 30, 2019, the City recognized pension expense for this plan of

$828,071.


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76

At September 30, 2019, the City reported deferred outflows of resources and deferred

inflows of resources related to pensions from the following sources:

Difference between projected and investment earnings $ 1,096,946 $ -

Differences between expected and actual economic

experience - (779,567)

Contributions subsequent to the measurement date 386,079 -

Total $ 1,483,025 $ (779,567)

Deferred

Outflows of

Resources

Deferred

(Inflows) of

Resources

The City reported $386,079 as deferred outflows of resources related to pensions resulting

from contributions subsequent to the measurement date that will be recognized as a

reduction of the net pension liability for the year ending September 30, 2020. Other amounts

reported as deferred outflows and inflows of resources related to pensions will be

recognized in pension expense as follows:

Year ended December 31:

2019 $ 421,789

2020 (44,672)

2021 (47,713)

2022 233,044

2023 (125,355)

2024 (119,714)

2025 -

Thereafter -

$ 317,379

Net pension liability $ (7,983,730) $ (6,701,845) $ (14,685,575)

Deferred outflows of resources 4,249,070 1,483,025 5,732,095

Deferred inflows of resources (231,780) (779,567) (1,011,347)

Pension expense 2,293,725 828,071 3,121,796

Total $ (1,672,715) $ (5,170,316) $ (6,843,031)

Total

Texas Municipal

Defined Benefit Plan

Denison Fireman's

Fund

Relief and RetirementRetirement System


September 30, 2019

77

E. Deferred Compensation Plan

The City has established a deferred compensation plan (the 457 plan) in accordance with

Internal Revenue Code, Section 457. The 457 plan, available to all employees, permits them

to defer a portion of their salaries until future years. The benefits of the plan are not

available to employees until termination, retirement, or unforeseeable emergency. Benefits

are available to employee's beneficiaries in case of death.

All amounts of compensation deferred under the 457 plan, all property rights purchased

with those amounts, and all income attributable to those amounts, property, or rights are

(until paid or made available to the employee or other beneficiary) solely the property and

rights of the City (without being restricted to the provisions of benefits under the plan)

subject only to the claims of the City's general creditors. Participants' rights under the plan

are equal to those of the general creditors of the City in an amount equal to the fair market

value of the deferred account for each participant.

It is the opinion of the City that the City has no liability for investment losses under the 457

plan, but does have the duty of due care that would be required of an ordinary prudent

investor. The City believes that it is unlikely that it will use the 457 plan assets to satisfy the

claims of general creditors in the future.

The City's deferred compensation plan is administered by a private corporation under

contract with the City. Participant contributions totaled $57,185 for the year ended

September 30, 2019.

F. Commitments and Contingencies

Texoma Area Solid Waste Authority

The City has an unconditional obligation to pay its proportionate share of TASWA's bond

debt service and annual operating and maintenance expenditures. The City pays its

proportionate share of this obligation to TASWA through tipping fees. The City's budgeted

commitment to TASWA for fiscal year 20 is $950,000. Payments made by the City during the

year totaled $912,455.

Guarantee

The City has executed a guarantee to the Texas Commission on Environmental Quality

("TCEQ") on behalf of TASWA. In the event TASWA fails to perform any closure, post-

closure, or corrective actions required by TCEQ, the City shall (i) perform such closure,

post-closure, or corrective actions, (ii) pay a third party to perform such closure, post-

closure or corrective actions, or (iii) establish a fully-funded trust pursuant to Texas law to

remedy the failure at the TASWA facility.


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78

If the City expends funds under this guarantee, the City would be unconditionally entitled

to reimbursement from TASWA according to the terms of the Landfill Contract. Estimated

costs guaranteed by the City are $6,227,082 for closure and $1,950,089 for post-closure. The

landfill is estimated to be 17.2% full and has an estimated remaining useful life of 68.4 years.

These estimates are evaluated annually and are subject to change due to inflation, changes

in technology, or changes in regulation.

Greater Texoma Utility Authority

The City has entered into various contracts with the Greater Texoma Utility Authority

("Authority"), whereby the Authority provides water services to the City. As part of the

contractual agreements, the Authority issues debt for the benefit of the City, the proceeds of

which are used to finance construction of water and sewer facilities and infrastructure

within the City. Although this debt is not that of the City, the City is contractually obligated

for the repayment of principal and interest on the debt through a pledging of water

revenues.

During the year ended September 30, 2019, the City paid $273,419 to the Authority in

accordance with these contracts. Future payments under these contracts average

approximately $289,527 per year for the next 11 years.

A summary of the remaining debt service as of September 30, 2019 is as follows:

Year Ending

September 30,

2020 $ 225,720 $ 59,588 $ 285,308

2021 232,200 56,317 288,517

2022 237,600 52,407 290,007

2023 243,000 48,049 291,049

2024 249,480 43,240 292,720

2025 255,960 38,021 293,981

2026 262,440 32,411 294,851

2027 268,920 26,424 295,344

2028 275,400 20,070 295,470

2029 281,880 13,358 295,238

2030 255,960 6,348 262,308

Total $ 2,788,560 $ 396,233 $ 3,184,793



September 30, 2019

79

Construction Commitments

The City has active construction projects as of September 30, 2019. At year end, the City's

commitments with contractors are as follows:

Governmental Funds

Project Construction

Budget in Progress Remaining

Project Appropriation (Spent to Date) Commitment

Katy Trail Phase One $ 229,978 $ 100,649 $ 129,329

Flora Lane Reconstruction 184,450 140,188 44,262

Waterloo/Lang Reconstruction 246,846 - 246,846

Downtown Design 969,600 686,085 283,515

2019 Fall Overlay Program 196,619 - 196,619

West End Fire Station 756,995 - 756,995

Total Construction in Progress $ 2,584,488 $ 926,922 $ 1,657,566

Proprietary Funds

Project Construction

Budget in Progress Remaining

Project Appropriation (Spent to Date) Commitment

Theresa (Katy Trail/Railroad) Water Line $ 349,350 $ 312,264 $ 37,086

Iron Ore Interceptor 3,686,372 54,403 3,631,969

West End Fire Station 18,250 - 18,250

West Loy Lake 205,700 86,630 119,070

Environmental Services 338,743 14,578 324,165

Water Master Plan 191,200 236,112 (44,912)

Renovate Clarifier #2 23,979 13,529 10,450

Renovate Clarifier #2 174,302 - 174,302

Iron Ore Interceptor 739,900 629,981 109,919

Texoma Pump Station 829,958 450,527 379,431

Total Construction in Progress $ 6,557,754 $ 1,798,024 $ 4,759,730


September 30, 2019

80

G. Additional Water and Sewer Information

The following information is included at the request of the Texas Water Development Board

for the year under audit.

Water Accountability Report:

Gallons Pumped 1,590,020,000

Gallons Billed 1,189,566,163

The City of Denison secures its water supply and sewer services from the Greater Texoma

Utility Authority ("Authority"), a district authorized by the Texas Constitution, Article XVI,

Section 59; created by the Texas Legislature, Article 8280-141; and authorized to act by the

confirming vote of the majority of the qualified voters in each of the cities comprising the

District. The District has police, taxation and eminent domain powers and is authorized to

issue revenue and/or tax bonds upon approval by the Attorney General of the State of Texas

and functions as a political subdivision of the State of Texas independent of the City. The

District is governed by a 9-member board ("Board"). The Board has full power and

discretion to establish its budget and to set rates for the services it provides by contracts

with its member cities and customers. The Board is empowered by statute and contract, or

otherwise permitted by law, to discontinue a facility or service in order to prevent an abuse

or to enforce payment of an unpaid charge, fee or rental due to the Authority. Because of

these factors, the Authority is not included in the City's basic financial statements.

The City does not have meters on all water pumping stations to be able to accurately

measure the total number of gallons pumped. Therefore, the above numbers do not

accurately reflect the actual gallons pumped versus the total gallons billed.


September 30, 2019

81

H. Tax Abatement Disclosures

The City of Denison negotiates tax abatement agreements on an individual basis. The City

has three property tax abatement agreements with two separate entities and hotel tax

abatements with one entity as of September 30, 2019:

Abatement

Percentage of Taxes

Abated during

Type the Fiscal Year

50% $ 103,251

50% 38,609

100% 70,579

80% 29,003

Hotel 100% 227,496

Total $ 468,938

Amount of Taxes

Abated during

the Fiscal Year

Purpose

Food processing company receives tax abatements for

the acquisition and installation of personal property for

facility improvements at a preexisting facility within the

City. The estimated value of such is $30,000,000.

Hotel receives hotel tax abatements for constructing and

operating a hotel and conference center facility within

the City.

Developer received ad valorem rebate for constructing

single family structures within the City.

Property

Tax

Food processing company receives tax abatements for

constructing an additional 50,000 square feet of

manufacturing/warehouse space.

Property

Tax

Property

Tax

Hotel receives property tax abatements for constructing

and operating a hotel and conference center facility

within the City.

Property

Tax

Each agreement was negotiated under the property redevelopment and tax abatement act

codified in chapter 312 of the Texas tax code which authorizes allowing localities to abate

property taxes when the entity meets certain guidelines and criteria adopted by the

governing body. The Tax Code provides that a tax abatement agreement may provide for

the exemption of the real property in each year covered by the agreement only to the extent

its increase in value for that year exceeds its value for the year in which the agreement is

executed. Accordingly, only the increase in value may be abated. Moreover, the taxing unit

could abate from one percent (1%) to one hundred percent (100%) the property taxes paid

on the increase. A tax abatement agreement cannot exceed ten years in length.

The City has not made any commitments as part of the agreements other than to reduce

taxes. The City is not subject to any tax abatement agreements entered into by other

governmental entities. The City has chosen to disclose information about its tax abatement

agreements individually. It established a quantitative threshold of 100% percent of the total

dollar amount of taxes abated during the year.


September 30, 2019

82

I. Restatement

The City restated its beginning net position within government activities, business-type

activities, the general fund and the utility fund to properly reflect corrections of accrued

receivables and capital assets in the prior year. The below tables summarize the changes to

net position and the respective fund balances as a result of these changes.

Prior year ending net position/

fund balance as reported $ 39,501,737 $ 8,026,084 $ 1,669,842 $ 1,577,958

To correct accrued receivable (328,044) (328,044) - -

To correct compensated absences (1,014,907) - - -

To correct capital contribution (81,721) - - -

To correct retainage payable - - (783,525) 783,525

To correct capital assets 141,295 - - -

$ 38,218,360 $ 7,698,040 $ 886,317 $ 2,361,483

Restated beginning net

position/fund balance

Nonmajor

Governmental

Activities

General

BondGeneral

Prior year ending net position as reported $ 22,621,081 $ 22,621,081

To correct compensated absences (313,451) (313,451)

To correct accrued interest payable (194,101) (194,101)

To correct capital assets (192,750) (192,750)

$ 21,920,779 $ 21,920,779

Activities Fund

Restated beginning net position

Business-type Utility

J. Subsequent Events

Subsequent to September 30, 2019, there were no material events through March 11, 2020,

the date the financial statements were available to be issued.

REQUIRED SUPPLEMENTARY INFORMATION

83

Revenues

Property tax $ 7,846,030 $ 7,846,030 $ 8,000,437 $ 154,407

Sales tax 5,900,000 5,900,000 5,710,960 (189,040)

Franchise and local taxes 1,883,000 1,883,000 1,935,460 52,460

License and permits 605,000 605,000 607,804 2,804

Charges for services 9,099,954 9,099,954 8,953,765 (146,189)

Fines and forfeitures 640,000 640,000 305,184 (334,816)

Investment income 61,420 61,420 140,681 79,261

Other revenue 250,000 250,000 231,740 (18,260)

26,285,404 26,285,404 25,886,031 (399,373)

Expenditures

Current:

General government

City manager and admin. 2,054,496 1,872,366 2,354,538 (482,172)

Finance 643,095 646,643 614,713 31,930

Human resources 351,454 352,917 374,347 (21,430)

Information technology 999,783 1,063,191 957,751 105,440

Main street 218,746 219,159 313,775 (94,616)

Community engagement 182,666 183,307 170,983 12,324

Total 4,450,240 4,337,583 4,786,107 (448,524) *

Public safety

Fire 5,194,968 5,420,438 5,537,691 (117,253)

Police 5,012,520 5,098,999 5,042,585 56,414

Dispatch 673,295 674,512 625,186 49,326

Total 10,880,783 11,193,949 11,205,462 (11,513) *

Community services

Municipal court 310,116 310,116 286,616 23,500

Animal control 268,209 268,209 263,383 4,826

Cemetery 209,169 209,737 227,432 (17,695)

Code enforcement 334,172 334,642 310,838 23,804

Building inspections 555,286 555,286 498,019 57,267

Parks and recreation 2,798,153 2,807,778 2,580,758 227,020

Library 801,063 802,916 739,674 63,242

Total 5,276,168 5,288,684 4,906,720 381,964

Final Budget

Original Budget

Final

Budget Actual (Negative)

Total Revenues

Positive

City of Denison, TexasSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCE - BUDGET AND ACTUAL

GENERAL FUND (Page 1 of 2)

Variance with


84

Public works

Demolition 128,969 128,969 129,345 (376)

Garage 1,354,738 1,444,051 1,530,596 (86,545)

Streets 1,216,603 1,222,574 1,163,674 58,900

Solid waste 2,831,454 2,835,288 2,835,060 228

Planning 390,562 390,562 266,414 124,148

Building maintenance 187,795 191,452 197,883 (6,431)

Total 6,110,121 6,212,896 6,122,972 89,924

Capital outlay - 1,926,588 1,930,895 (4,307) *

Debt Service:

Principal 740,096 740,096 740,096 -

Interest and fiscal charges 40,580 40,580 63,126 (22,546) *

27,497,988 29,740,376 29,755,378 (15,002)

(1,212,584) (3,454,972) (3,869,347) (414,375)

Transfers in 2,327,396 2,550,921 1,913,923 (636,998)

Transfers (out) (815,105) (1,237,679) (664,049) 573,630

Lease proceeds - 1,887,500 1,887,500 -

1,512,291 3,200,742 3,137,374 (63,368)

Net Change in Fund Balance $ 299,707 $ (254,230) (731,973) $ (477,743)

Beginning fund balance 7,698,040

$ 6,966,067

Notes to Required Supplementary Information

* Expenditures exceeded appropriations at the legal level of control.

1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP).

Ending Fund Balance

Revenues Over (Under)

Expenditures

Total Expenditures

Total Other Financing Sources

(Uses)


Positive

Actual (Negative)



GENERAL FUND (Page 2 of 2)


Variance with

Final Budget

Original Budget

Final

Budget

85

Total pension liability

Service cost $ 1,385,094 $ 1,471,283 $ 1,570,742 $ 1,592,801

Interest 3,806,514 3,948,676 4,004,811 4,138,491

Differences between expected and actual

experience (534,097) (575,637) (190,121) (401,576)

Changes of assumptions - 1,069,012 - -

Benefit payments, including refunds of

participant contributions (2,391,085) (2,948,365) (3,136,017) (3,695,995)

Net change in total pension liability 2,266,426 2,964,969 2,249,415 1,633,721

Total pension liability - beginning 54,881,770 57,148,196 60,113,165 62,362,580

Total pension liability - ending (a) 57,148,196 60,113,165 62,362,580 63,996,301

Plan fiduciary net position

Contributions - employer $ 1,253,742 $ 1,241,360 $ 1,194,194 $ 1,307,587

Contributions - members 688,330 699,659 708,453 718,866

Net investment income 2,965,830 80,166 3,605,230 7,715,846



Administrative expenses (30,966) (48,830) (40,721) (39,994)

Other (2,546) (2,412) (2,194) (2,027)

Net change in plan fiduciary net position 2,483,305 (978,422) 2,328,945 6,004,283

Plan fiduciary net position - beginning 51,847,184 54,330,489 53,352,067 55,681,012

Plan fiduciary net position - ending (b) $ 54,330,489 $ 53,352,067 $ 55,681,012 $ 61,685,295

$ 2,817,707 $ 6,761,098 $ 6,681,568 $ 2,311,006

95.07% 88.75% 89.29% 96.39%

Covered payroll $ 9,833,286 $ 9,995,129 $ 10,120,762 $ 10,269,508

28.65% 67.64% 66.02% 22.50%

Notes to schedule:

1) This schedule is presented to illustrate the requirement to show information for ten calendar years. However,

until a full ten-year trend is compiled, only available information is shown.

City of Denison, TexasSCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS

TEXAS MUNICIPAL RETIREMENT SYSTEM

Years Ended

Fund's net pension liability as a

percentage of covered payroll

12/31/201612/31/2015

Plan fiduciary net position as a percentage

of the total pension liability

12/31/2014 12/31/2017

Fund's net pension liability - ending (a) - (b)

86

1

$ 1,698,110

4,259,941

15,566

-

(3,470,248)

2,503,369

63,996,301

66,499,670

$ 1,410,223

775,143

(1,846,896)

(3,470,248)

(35,711)

(1,866)

(3,169,355)

61,685,295

$ 58,515,940

$ 7,983,730

87.99%

$ 11,005,252

72.54%

12/31/2018

87

9/30/2015 9/30/2016 9/30/2017 9/30/2018

$ 1,256,647 $ 1,197,073 $ 1,276,138 $ 1,366,662

$ 1,256,647 $ 1,197,073 $ 1,276,138 $ 1,366,662

Contribution deficiency (excess) $ - $ - $ - $ -

Annual covered payroll $ 10,050,835 $ 10,014,944 $ 10,309,965 $ 10,729,319

12.50% 11.95% 12.38% 12.74%

NOTES TO SCHEDULE OF EMPLOYER CONTRIBUTIONS TO PENSION PLAN

Valuation Date:

Notes 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 Rates:

Actuarial Cost Method Entry Age Normal

Amortization Method Level Percentage of Payroll, Closed

Remaining Amortization Period 27 years

Asset Valuation Method 10 Year smoothed market; 15% soft corridor

Inflation 2.5%

Salary Increases 3.50% to 10.50% including inflation

Investment Rate of Return 6.75%

Retirement Age

Mortality

Other Information:

Notes There were no benefit changes during the year.

Experience-based table of rates that are specific to the City's plan of

benefits. Last updated for the 2015 valuation pursuant to an experience

study of the period 2010 - 2014

RP2000 Combined Mortality Table with Blue Collar Adjustment with

male rates multiplied by 109% and female rates multiplied by 103% and

projected on a fully generational basis with scale BB

1) This schedule is presented to illustrate the requirement to show information for ten fiscal years. However,


Contributions in relation to the

actuarially determined contribution

Employer contributions as a percentage of

covered payroll

City of Denison, TexasSCHEDULE OF EMPLOYER CONTRIBUTIONS TO PENSION PLAN

TEXAS MUNICIPAL RETIREMENT SYSTEM

Years Ended:

Actuarially determined employer

contributions

88

9/30/2019 1

$ 1,431,847

$ 1,431,847

$ -

$ 10,729,319

12.17%

89

Total pension liability

Service cost $ 519,493 $ 540,273 $ 561,884 $ 584,359

Interest 1,570,247 1,636,517 1,691,849 1,754,603

Differences between expected and

actual experience - (322,524) - (246,506)

Changes of assumptions - 249,916 - (750,691)



Net change in total pension liability 876,779 785,221 749,003 (86,451)

Total pension liability - beginning 20,358,784 21,235,563 22,020,784 22,769,787

Total pension liability - ending (a) 21,235,563 22,020,784 22,769,787 22,683,336

Plan fiduciary net position

Contributions - employer $ 487,188 $ 493,062 $ 500,182 $ 501,647

Contributions - members 389,748 398,318 400,158 401,067

Net investment income 1,368,721 (1,053,804) 1,139,415 2,568,080



Administrative expenses (21,105) (26,839) (28,393) (38,876)

Other - (2,003) - -

Net change in plan fiduciary net position 1,011,591 (1,510,227) 506,632 2,003,702

Plan fiduciary net position - beginning 15,713,372 16,724,963 15,214,736 15,721,368

Plan fiduciary net position - ending (b) $ 16,724,963 $ 15,214,736 $ 15,721,368 $ 17,725,070

Fund's net pension liability - ending (a) - (b)$ 4,510,600 $ 6,806,048 $ 7,048,419 $ 4,958,266

78.76% 69.09% 69.04% 78.14%

Covered payroll $ 3,247,920 $ 3,287,080 $ 3,334,547 $ 3,344,313

138.88% 207.05% 211.38% 148.26%

Notes to schedule:

12/31/2017

City of Denison, TexasSCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS

DENISON FIREMEN'S RELIEF AND RETIREMENT FUND

Years Ended:

1) This schedule is presented to illustrate the requirement to show information for ten calendar

years. However, until a full ten-year trend is compiled, only available information is shown.

12/31/2015

Plan fiduciary net position as a

percentage of the total pension liability

12/31/2014 12/31/2016

Fund's net position as a percentage of

covered payroll

90

1

$ 487,429

1,679,321

-

-

(1,559,639)

607,111

22,683,336

23,290,447

$ 504,819

404,045

(461,618)

(1,559,639)

(24,075)

-

(1,136,468)

17,725,070

$ 16,588,602

$ 6,701,845

71.22%

$ 3,365,460

199.14%

12/31/2018

91

9/30/2015 9/30/2016 9/30/2017 9/30/2018

$ 495,712 $ 498,662 $ 504,920 $ 500,846

$ 495,712 $ 498,662 $ 504,920 $ 500,846

Contribution deficiency (excess) $ - $ - $ - $ -

Annual covered payroll $ 3,304,750 $ 3,324,413 $ 3,366,133 $ 3,338,973

15.00% 15.00% 15.00% 15.00%

NOTES TO SCHEDULE OF EMPLOYER CONTRIBUTIONS TO PENSION PLAN

Valuation Date:

Notes Actuarially determined contribution rates are

determined by the contacted contribution rates.

Methods and Assumptions Used to Determine Contribution Rates:

Actuarial Cost Method Entry Age Normal

Amortization Method Level Percentage of Payroll, Open

Remaining Amortization Period 27.1 years

Asset Valuation Method 5 Year smoothed market; 20% market value corridor

Inflation 3.0%

Salary Increases 5% per year

Investment Rate of Return 7.75%

Retirement Age Experience-based table of rates that are specific to the City's plan

of benefits. Last updated for the 2017 valuation.

Mortality RP-2000 combined healthy tables for males

and females with mortality improvement projected

to 2024 using Scale AA.

Other Information:

Notes There were no benefit changes during the year.

1) This schedule is presented to illustrate the requirement to show information for ten fiscal years. However,


Contributions in relation to the

actuarially determined contribution

Employer contributions as a

percentage of covered payroll

City of Denison, TexasSCHEDULE OF EMPLOYER CONTRIBUTIONS TO PENSION PLAN

DENISON FIREMEN'S RELIEF AND RETIREMENT FUND

Years Ended:

Actuarially determined employer

contributions

92

9/30/2019 1

$ 513,916

$ 513,916

$ -

$ 3,426,107

15.00%

93

OTHER SUPPLEMENTARY INFORMATION

COMBINING STATEMENTS AND

INDIVIDUAL FUND SCHEDULES

95

Cash and cash equivalents $ 628,961 $ 479,731 $ 150,000

Restricted assets - cash - 148,635 -

Receivables, net - 74,487 -

Interest in net position of recipient organization - - -

$ 628,961 $ 702,853 $ 150,000

Liabilities

Accounts payable and accrued liabilities $ - $ - $ 137,985

Due to other funds - - 5,184

Advances from other funds - - -

Total Liabilities - - 143,169


Unavailable revenue - property taxes - 72,709 -

Total Deferred Inflows of Resources - 72,709 -

Fund Balances

Restricted for:

Debt service - 630,144 -

Capital projects - - -

Municipal court - - -

Public safety - - -

Community services - - -

Committed to:

Parks - - -

General government - - 6,831

Capital projects 628,961 - -

Assigned to:


Unassigned - - -

628,961 630,144 6,831

$ 628,961 $ 702,853 $ 150,000

Total Liabilities, Deferred Inflows of Resources,

and Fund Balances

Total Assets

Assets

Sinking

Total Fund Balances

City of Denison, TexasCOMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS

September 30, 2019

O&C

General

Interest &

Tax Increment Cemetery

Pre-payReinvestment

Zone

96

$ 3,044 $ - $ 515,197 $ - $ -

- 493,519 - - 146,704

- - 82,602 - -

- - - - -

$ 3,044 $ 493,519 $ 597,799 $ - $ 146,704

$ 2,541 $ 5,001 $ 77,768 $ 4,277 $ 47

- - - 70,781 -

- - 220,979 - -

2,541 5,001 298,747 75,058 47

- - - - -

- - - - -

- - - - -

- 488,518 - - -

- - - - -

- - - - -

- - - - 146,657

- - 299,052 - -

503 - - - -

- - - - -

- - - - -

- - - (75,058) -

503 488,518 299,052 (75,058) 146,657

$ 3,044 $ 493,519 $ 597,799 $ - $ 146,704

Public

Improvement

Special

Events Recreation Development Library

Denison

Street Parks & Community

97

Cash and cash equivalents $ - $ - $ -

Restricted assets - cash - 130,258 10,317

Receivables, net - - -

Interest in net position of recipient organization 235,516 - -

$ 235,516 $ 130,258 $ 10,317

Liabilities

Accounts payable and accrued liabilities $ - $ 30,650 $ -

Due to other funds - - -


Total Liabilities - 30,650 -


Unavailable revenue - property taxes - - -

Total Deferred Inflows of Resources - - -

Fund Balances

Restricted for:

Debt service - - -

Capital projects - - 10,317

Municipal court - - -

Public safety - 99,608 -


Committed to:

Parks - - -

General government - - -


Assigned to:

Capital projects 235,516 - -

Unassigned - - -

235,516 99,608 10,317

$ 235,516 $ 130,258 $ 10,317

City of Denison, TexasCOMBINING BALANCE SHEET (CONTINUED)


September 30, 2019

Mr. & Mrs.

Jones Federal Fire

Assets

Total Assets

Total Fund Balances


and Fund Balances

Memorial Trust Foreitures Equipment

98

$ - $ 686 $ - $ - $ 1,044

2,959 - 1,984 3,900 -

- - - - -

- - - - -

$ 2,959 $ 686 $ 1,984 $ 3,900 $ 1,044

$ - $ - $ - $ - $ -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

2,959 686 1,984 3,900 1,044

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

2,959 686 1,984 3,900 1,044

$ 2,959 $ 686 $ 1,984 $ 3,900 $ 1,044

Homeland

Fire

Seizures

Security Police Vehicle

Training Canine Grant Equipment

99

Cash and cash equivalents $ - $ - $ 2,374

Restricted assets - cash 20,524 - -

Receivables, net - - -

Interest in net position of recipient organization - - -

$ 20,524 $ - $ 2,374

Liabilities

Accounts payable and accrued liabilities $ 700 $ - $ -

Due to other funds - - -


Total Liabilities 700 - -


Unavailable revenue - property taxes - - -

Total Deferred Inflows of Resources - - -

Fund Balances

Restricted for:

Debt service - - -

Capital improvements - - -

Municipal court - - 2,374

Public safety 19,824 - -


Committed to:

Parks - - -



Assigned to:


Unassigned - - -

19,824 - 2,374

$ 20,524 $ - $ 2,374

City of Denison, TexasCOMBINING BALANCE SHEET (CONTINUED)


Assets

September 30, 2019

Municipal

Enforcement Police

Training

Law

Forfeitures

Court

Security

Total Fund Balances


and Fund Balances

Total Assets

100

$ 16,811 $ 1,797,848

- 958,800

- 157,089

- 235,516

$ 16,811 $ 3,149,253

$ - $ 258,969

- 75,965

- 220,979

- 555,913

- 72,709

- 72,709

- 630,144

- 498,835

16,811 19,185

- 130,005

- 146,657

- 299,052

- 7,334

- 628,961

- 235,516

- (75,058)

16,811 2,520,631

$ 16,811 $ 3,149,253

Municipal

Court

Technology Total

101

Revenues

Property tax $ 368,019 $ 1,671,613 $ -

Intergovernmental - - -

Charges for services - - 14,165

Fines and forfeitures - - -

Investment income 13,467 15,799 3,379

Other revenue - - -

381,486 1,687,412 17,544

Expenditures

Current:


Public safety - - -


Public works - - -

Capital outlay - - -

Debt Service:

Principal 80,000 952,399 -

Interest and fiscal charges 35,968 276,319 -

115,968 1,228,718 -

265,518 458,694 17,544


Transfers in - - -

Transfers (out) - (108,682) (14,165)

- (108,682) (14,165)

265,518 350,012 3,379

Beginning fund balances 363,443 280,132 3,452

$ 628,961 $ 630,144 $ 6,831


Interest &

General


Reinvestment

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES


Revenues Over (Under) Expenditures

Cemetery


Total Other Financing Sources (Uses)

Zone Sinking


Tax Increment

Pre-pay

O&C

Total Revenues

Total Expenditures

102

$ - $ - $ - $ - $ -

- - - 51,296 116,874

- - 512,059 80,859 -

- - - - -

162 5,215 11,079 - 3,261

177,119 3,900 1,500 206,978 -

177,281 9,115 524,638 339,133 120,135

191,304 - - 193,387 78,806

- - - - -

- - 518,711 - -

- 259,188 - - -

- 468,565 - - -

- - - 169,000 -

- - - 37,978 -

191,304 727,753 518,711 400,365 78,806

(14,023) (718,638) 5,927 (61,232) 41,329

- 670,000 - - -

- - (202,595) - -

- 670,000 (202,595) - -

(14,023) (48,638) (196,668) (61,232) 41,329

14,526 537,156 495,720 (13,826) 105,328

$ 503 $ 488,518 $ 299,052 $ (75,058) $ 146,657

Events

Special

Improvement Recreation Development Library

Denison

Street Parks & Community Public

103

Revenues

Property tax $ - $ - $ -

Intergovernmental - - 1,200

Charges for services - - -

Fines and forfeitures - 82,320 -

Investment income - 2,096 203

Other revenue - - -

- 84,416 1,403

Expenditures

Current:


Public safety - 46,341 -


Public works - - -


Debt Service:

Principal - - -

Interest and fiscal charges 9,433 - -

9,433 46,341 -

(9,433) 38,075 1,403


Transfers in - - -

Transfers (out) - (51,470) -

- (51,470) -

(9,433) (13,395) 1,403

Beginning fund balances 244,949 113,003 8,914

$ 235,516 $ 99,608 $ 10,317

City of Denison, TexasCOMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES (CONTINUED)



Mr. & Mrs.

Total Expenditures


Memorial Trust Foreitures Equipment

Jones Federal Fire


Total Revenues



104

$ - $ - $ - $ - $ -

12,398 - 106,000 157,772 -

- - - - -

- - - - -

76 14 364 108 21

- - - - -

12,474 14 106,364 157,880 21

- - - - -

12,440 - 104,380 164,968 -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

12,440 - 104,380 164,968 -

34 14 1,984 (7,088) 21

- - - - -

(4,200) - - - -

(4,200) - - - -

(4,166) 14 1,984 (7,088) 21

7,125 672 - 10,988 1,023

$ 2,959 $ 686 $ 1,984 $ 3,900 $ 1,044

Equipment

Homeland

Security Police Vehicle

Training Canine Grant

Seizures

Fire

105

Revenues

Property tax $ - $ - $ -

Intergovernmental - - -

Charges for services - - -

Fines and forfeitures - - 5,590

Investment income 787 45 67

Other revenue - 3,425 -

787 3,470 5,657

Expenditures

Current:


Public safety 81,689 3,470 -

Community services - - 1,741

Public works - - -


Debt Service:

Principal - - -

Interest and fiscal charges - - -

81,689 3,470 1,741

(80,902) - 3,916


Transfers in - - -

Transfers (out) - - (60,000)

- - (60,000)

(80,902) - (56,084)

Beginning fund balances 100,726 - 58,458

$ 19,824 $ - $ 2,374

Law




Security

Municipal

City of Denison, TexasCOMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES (CONTINUED)



Enforcement Police

Total Revenues

Total Expenditures


Forfeitures Training

Court

106

$ - $ 2,039,632

- 445,540

- 607,083

7,453 95,363

421 56,564

- 392,922

7,874 3,637,104

- 463,497

- 413,288

20,757 541,209

- 259,188

- 468,565

- 1,201,399

- 359,698

20,757 3,706,844

(12,883) (69,740)

- 670,000

- (441,112)

- 228,888

(12,883) 159,148

29,694 2,361,483

$ 16,811 $ 2,520,631

Municipal

Total

Court

Technology

107

Revenues

Intergovernmental $ 902,201 $ 797,349 $ (104,852)


910,201 816,830 (93,371)

Expenditures

Current:

General government 6,512 6,512 -

Community services 1,558,360 1,020,141 538,219

Debt Service:

Principal 715,000 715,000 -

Interest and fiscal charges 108,722 108,653 69

2,388,594 1,850,306 538,288

(1,478,393) (1,033,476) 444,917

Transfers in - 367,731 367,731

Transfers (out) (139,992) - 139,992

(139,992) 367,731 507,723

Net Change in Fund Balance $ (1,618,385) (665,745) $ 952,640

Beginning fund balance 886,317

$ 220,572

Notes to Supplementary Information

1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles

Total Revenues

Final Budget

Original & Final

Budget

Positive

Actual (Negative)

Total Expenditures




Ending Fund Balance

Variance with



GENERAL BOND FUND


108

Revenues

Property tax $ 388,000 $ 368,019 $ (19,981)


390,600 381,486 (9,114)

Expenditures

Debt Service:

Principal 80,000 80,000 -

Interest and fiscal charges 36,013 35,968 45

116,013 115,968 45

274,587 265,518 (9,069)

$ 274,587 265,518 $ (9,069)

Beginning fund balances 363,443

$ 628,961


1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles.

City of Denison, Texas SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES


TAX INCREMENT REINVESTMENT ZONE


Variance with

Final Budget

Original &

Final Budget

Positive

Actual (Negative)

Total Revenues

Total Expenditures




109

Revenues

Property tax $ 1,455,311 $ 1,671,613 $ 216,302


1,461,311 1,687,412 226,101

Expenditures

Debt Service:

Principal 952,399 952,399 -

Interest and fiscal charges 502,911 276,319 226,592

1,455,310 1,228,718 226,592


Transfers (out) (108,682) (108,682) -

(108,682) (108,682) -

$ (102,681) 350,012 $ 452,693


$ 630,144




Total Revenues

Total Expenditures

GENERAL INTEREST AND SINKING

Final Budget

Positive

Variance with

Original &

Final Budget Actual (Negative)






110

Revenues

Charges for services $ 10,000 $ 14,165 $ 4,165


11,000 17,544 6,544

Expenditures

Current:

General government 10,000 - 10,000

10,000 - 10,000

1,000 17,544 16,544


Transfers (out) - (14,165) (14,165) *

- (14,165) (14,165)

$ 1,000 3,379 $ 2,379


$ 6,831




Total Revenues

Total Expenditures







CEMETERY PRE-PAY O&C


Final Budget

Original &

Final Budget

Positive

Actual (Negative)

Variance with

111

Revenues

Investment income $ 1,250 $ 5,215 $ 3,965

Other revenue - 3,900 3,900

1,250 9,115 7,865

Expenditures

Public works 536,764 259,188 277,576

Capital outlay 670,000 468,565 201,435

1,206,764 727,753 479,011

(1,205,514) (718,638) 486,876


Transfers in 670,000 670,000 -

670,000 670,000 -

$ (535,514) (48,638) $ 486,876


$ 488,518







STREET IMPROVEMENT

Actual (Negative)



Variance with

Final Budget

Original &

Final Budget

Positive

Total Revenues

Total Expenditures


112

Revenues

Intergovernmental $ 128,100 $ 116,874 $ (11,226)


129,100 120,135 (8,965)

Expenditures

Current:

General government 128,600 78,806 49,794

128,600 78,806 49,794

$ 500 41,329 $ 40,829


$ 146,657



Total Revenues

Total Expenditures



Positive



DENISON PUBLIC LIBRARY

Variance with

Final Budget

Original &

Final Budget Actual (Negative)


SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES

113

Revenues

Fines and forfeitures $ 45,000 $ 82,320 $ 37,320

Investment income 2,000 2,096 96

47,000 84,416 37,416

Expenditures

Current:

Public safety 25,000 46,341 (21,341) *

25,000 46,341 (21,341)

22,000 38,075 16,075


Transfers (out) (88,915) (51,470) 37,445

(88,915) (51,470) 37,445

$ (66,915) (13,395) $ 53,520


$ 99,608





Total Revenues

Total Expenditures







FEDERAL FORFEITURES


Variance with

Final Budget

Original &

Final Budget

Positive

Actual (Negative)

114

Revenues

Intergovernmental $ - $ 1,200 $ 1,200

Investment income - 203 203

- 1,403 1,403

Expenditures

Current:

Public safety 6,000 - 6,000

6,000 - 6,000

$ (6,000) 1,403 $ 7,403


$ 10,317





Final Budget

Original &

Final Budget

Positive

Actual (Negative)

Total Revenues

Total Expenditures

Variance with




FIRE EQUIPMENT

115

Revenues

Charges for services $ 505,000 $ 512,059 $ 7,059


Other revenue - 1,500 1,500

509,000 524,638 15,638

Expenditures

Current:

Culture and recreation 782,423 518,711 263,712

782,423 518,711 263,712

(273,423) 5,927 279,350


Transfers in 56,599 - (56,599)

Transfers (out) - (202,595) (202,595) *

56,599 (202,595) (259,194)

$ (216,824) (196,668) $ 20,156


$ 299,052







Final Budget

Original &

Final Budget

Positive

Actual (Negative)

Total Revenues

Total Expenditures


Variance with




PARKS & RECREATION

116

Revenues

Fines and forfeitures $ 40,000 $ - $ (40,000)


40,000 787 (39,213)

Expenditures

Current:

Public safety 46,900 81,689 (34,789) *

46,900 81,689 (34,789)

(6,900) (80,902) (74,002)

$ (6,900) (80,902) $ (74,002)


$ 19,824






Final Budget

Original &

Final Budget

Positive

Actual (Negative)

Total Revenues

Total Expenditures


Variance with




LAW ENFORCEMENT FORFIETURES

117

Revenues

Other income $ 151,000 $ 177,119 $ 26,119


151,050 177,281 26,231

Expenditures

Current:

General government 151,000 191,304 (40,304) *

151,000 191,304 (40,304)

50 (14,023) (14,073)


Transfers (out) (50) - 50

(50) - 50

$ - (14,023) $ (14,023)


$ 503






SPECIAL EVENTS


Variance with

Final Budget

Original &

Final Budget

Positive

Actual (Negative)

Total Revenues

Total Expenditures





118

Revenues

Fines and forfeitures $ 8,500 $ 5,590 $ (2,910)

Investment income 100 67 (33)

8,600 5,657 (2,943)

Expenditures

Current:

Public service 61,500 1,741 59,759

61,500 1,741 59,759

(52,900) 3,916 56,816

$ (52,900) (56,084) $ (3,184)


$ 2,374





MUNICIPAL COURT SECURITY


Variance with

Final Budget

Original &

Final Budget

Positive

Actual (Negative)

Total Revenues

Total Expenditures




119

Revenues

Fines and forfeitures $ 9,500 $ 7,453 $ (2,047)


9,800 7,874 (1,926)

Expenditures

Current:

Public service 27,000 20,757 6,243

27,000 20,757 6,243

(17,200) (12,883) 4,317

$ (17,200) (12,883) $ 4,317


$ 16,811



Total Revenues

Total Expenditures




MUNICIPAL COURT TECHNOLOGY

Final Budget

Original &

Final Budget

Positive

Actual (Negative)



Variance with



120

Revenues

Intergovernmental $ - $ 12,398 $ 12,398


- 12,474 12,474

Expenditures

Current:

Public safety 5,000 12,440 (7,440) *

5,000 12,440 (7,440)

(5,000) 34 5,034


Transfers (out) - (4,200) (4,200)

- (4,200) (4,200)

$ (5,000) (4,166) $ 834


$ 2,959






FIRE TRAINING


Variance with

Final Budget

Original &

Final Budget

Positive

Actual (Negative)

Total Revenues

Total Expenditures





121

Revenues

Intergovernmental $ 106,000 $ 106,000 $ -


106,000 106,364 364

Expenditures

Current:

Public safety 106,000 104,380 1,620

106,000 104,380 1,620

$ - 1,984 $ 1,984

Beginning fund balances -

$ 1,984





HOMELAND SECURITY GRANT


Variance with

Final Budget

Original &

Final Budget

Positive

Actual (Negative)

Total Revenues

Total Expenditures



122

Revenues

Investment income $ 6 $ 21 $ 15

6 21 15

$ 6 21 $ 15


$ 1,044





VEHICLE SEIZURES


Variance with

Final Budget

Original &

Final Budget

Positive

Actual (Negative)

Total Revenues



123

Revenues


5 14 9

$ 5 14 $ 9

Beginning fund balances 672

$ 686





CANINE


Variance with

Final Budget

Original &

Final Budget

Positive

Actual (Negative)

Total Revenues



124

Revenues


Other revenue 3,000 3,425 425

3,015 3,470 455

Expenditures

Current:

Public safety 3,375 3,470 (95) *

3,375 3,470 (95)

(360) - 360

$ (360) - $ 360

Beginning fund balances -

$ -






Total Revenues

Total Expenditures




POLICE TRAINING


Variance with

Final Budget

Original &

Final Budget

Positive

Actual (Negative)

125

Cash and cash equivalents $ 2,294,254 $ 441,594 $ 21,035 $ 2,756,883

Restricted assets - cash 125,522 31,701 - 157,223

Retricted assets - investments - - 740,032 740,032

Receivables, net 392,677 4,647 - 397,324

Notes receivable - 114,529 - 114,529

Total Current Assets 2,812,453 592,471 761,067 4,165,991

Investments - 482,336 - 482,336

Note receivable - long-term portion - 550,367 - 550,367

Capital assets:

Non-depreciable 1,687,842 - - 1,687,842

Net depreciable capital assets 3,077,221 - - 3,077,221

Total Noncurrent Assets 4,765,063 1,032,703 - 5,797,766

Total Assets 7,577,516 1,625,174 761,067 9,963,757

Liabilities

Accounts payable and

accrued liabilities 88,883 - - 88,883

Escrow payable - 31,701 - 31,701

Accrued interest payable 3,495 - - 3,495

Compensated absences - current 7,709 - - 7,709

Debt due within one year 571,533 - - 571,533

671,620 31,701 - 703,321

Noncurrent liabilities:

Compensated absences - noncurrent 69,382 69,382

Debt due in more than one year 396,000 - - 396,000

465,382 - - 465,382

Total Liabilities 1,137,002 31,701 - 1,168,703

Net investment in capital assets 3,873,062 - - 3,873,062

Restricted

Debt service 13,257 - - 13,257

Library - - - -

Unrestricted 2,554,195 1,593,473 761,067 4,908,735

Total Net Position $ 6,440,514 $ 1,593,473 $ 761,067 $ 8,795,054

*Note: As of December 31, 2018

City of Denison, TexasCOMBINING SCHEDULE OF NET POSITION

September 30, 2019

Industrial Investment Endowment

DISCRETELY PRESENTED COMPONENT UNITS

Denison Denison Denison

Business and Community Public Library

Corporation Corporation* Fund Total

Assets

Net Position

127

Capital

Grants and

Contributions

Component Units


$ 1,869,478 $ 496,391 $ - $ 20,092

Public Library Endowment Fund 68,377 - 10,620 -

1,937,855 496,391 10,620 20,092


23,516 - - -

Total Business-Type Activities 23,516 - - -

Total Component Units $ 1,961,371 $ 496,391 $ 10,620 $ 20,092

General Revenues:

Sales taxes

Investment income

Other revenues

Total General Revenues


Beginning Net Position

Ending Net Position

*Note: For the year ended December 31, 2018

City of Denison, TexasCOMBINING SCHEDULE OF ACTIVITIES

DISCRETELY PRESENTED COMPONENT UNITS


Program Revenues

Operating

Contributions

Grants and

Business and Industrial

Community Investment


Functions/Programs Expenses Services

Charges for

128

$ (1,352,995) $ - $ - $ (1,352,995)

- - (57,757) (57,757)

(1,352,995) - (57,757) (1,410,752)

- (23,516) - (23,516)

- (23,516) - (23,516)

$ (1,352,995) $ (23,516) $ (57,757) $ (1,434,268)

1,903,653 - - 1,903,653

36,663 39,989 45,009 121,661

1,000 1,302 1,143 3,445

1,941,316 41,291 46,152 2,028,759

588,321 17,775 (11,605) 594,491

5,852,193 1,575,698 772,672 8,200,563

$ 6,440,514 $ 1,593,473 $ 761,067 $ 8,795,054

Public Library

Net (Expense) Revenue and Changes in Net Position

TotalFund

Denison

Endowment

Corporation

Denison

Industrial Investment

Denison

Business and Community

Corporation*

129

Contents Page

Financial Trends 132

Revenue Capacity 144

Debt Capacity 152

Demographic and Economic Information 159

Operating Information 162

These schedules contain service and infrastructure data to help the reader understand how the information in

the City's financial report relates to the services the City provides and the activities it performs.

STATISTICAL SECTION

This part of the City's comprehensive annual financial report presents detailed information as a

context for understanding what the information in the financial statements, note disclosures, and

required supplementary information says about the City's overall financial health.

These schedules contain trend information to help the reader understand how the City's financial performance

and well-being have changed over time.

These schedules contain information to help the reader assess the City's most significant local revenue source,

property tax.

These schedules present information to help the reader assess the affordability of the City's current levels of

outstanding debt and the City's ability to issue additional debt in the future.

These schedules offer demographic and economic indicators to help the reader understand the environment

within which the City's financial activities take place.

131

2019 2018 2017 2016

Governmental activities

Net investment in capital assets 37,535,804$ 37,495,796$ 37,132,818$ 35,036,127$

Restricted 1,645,398 773,847 501,914 481,114

Unrestricted (3,290,132) (51,283) (364,665) 1,024,406

Total governmental activities net

position 35,891,070$ 38,218,360$ 37,270,067$ 36,541,647$

Business-type activities


Restricted - - - -

Unrestricted 5,973,273 3,693,557 3,285,060 3,199,098

Total business-type activities net

position 24,438,983$ 21,920,779$ 21,267,680$ 20,889,954$

Primary government


Restricted 1,645,398 773,847 501,914 481,114

Unrestricted 2,683,141 3,642,274 2,920,395 4,223,504

Total primary government net

position 60,330,053$ 60,139,139$ 58,537,747$ 57,431,601$

Source: Audited city financials

City of Denison, Texas NET POSITION BY COMPONENT

Last Ten Fiscal Years (Unaudited)

(accrual basis of accounting)

132

2015 2014 2013 2012 2011 2010

26,366,449$ 26,183,653$ 25,489,295$ 25,010,721$ 24,679,356$ 25,022,890$

315,807 284,879 790,267 2,401,922 3,117,398 1,638,459

2,058,721 1,251,676 6,124,351 3,383,793 2,587,671 6,047,351

28,740,977$ 27,720,208$ 32,403,913$ 30,796,436$ 30,384,425$ 32,708,700$

17,614,946$ 17,361,833$ 18,066,238$ 17,566,714$ 15,655,014$ 14,311,525$

- - 308,663 1,367,649 1,004,512 1,939,777

3,399,905 3,361,574 2,691,624 2,564,301 4,367,729 3,228,748

21,014,851$ 20,723,407$ 21,066,525$ 21,498,664$ 21,027,255$ 19,480,050$

43,981,395$ 43,545,486$ 43,555,533$ 42,577,435$ 40,334,370$ 39,334,415$

315,807 284,879 1,098,930 3,769,571 4,121,910 3,578,236

5,458,626 4,613,250 8,815,975 5,948,094 6,955,400 9,276,099

49,755,828$ 48,443,615$ 53,470,438$ 52,295,100$ 51,411,680$ 52,188,750$

133

2019 2018 2017 2016

Expenses

Governmental activities:

General government 5,674,881$ 5,592,849$ 6,217,065$ 4,676,013$

Public safety 12,903,441 11,341,795 11,552,027 10,918,408

Community services 5,776,713 4,055,461 4,288,512 4,124,284

Public works 6,804,281 6,324,708 6,157,746 4,953,880

Interest on long-term debt 506,897 538,988 489,753 305,847

Total governmental activities expenses 31,666,213 27,853,801 28,705,103 24,978,432

Business-type activities:

Water and sewer 10,545,353 9,771,531 9,557,924 9,456,049

Total business-type activities expenses 10,545,353 9,771,531 9,557,924 9,456,049

Total primary government expenses 42,211,566$ 37,625,332$ 38,263,027$ 34,434,481$

Program Revenues


Charges for services:

General government 1,418,334$ 1,243,624$ 1,214,347$ 901,405$

Public safety 1,829,812 2,353,054 1,860,847 2,237,545


Public works 5,410,774 5,394,334 5,178,881 4,948,606

Operating grants and contributions 449,370 819,419 224,280 1,199,819

Capital grants and contributions - - 272,525 -

Total governmental activities program

revenues 10,797,056 11,257,193 10,155,919 10,458,350


Charges for services:

Water and sewer 12,783,394 12,555,348 11,925,469 11,035,471

Capital grants and contributions - - - -

Total business-type activities program

revenues 12,783,394 12,555,348 11,925,469 11,035,471

Total primary government program

revenues 23,580,450$ 23,812,541$ 22,081,388$ 21,493,821$


City of Denison, Texas CHANGES IN NET POSITION



134

2015 2014 2013 2012 2011 2010

4,368,406$ 4,435,657$ 4,440,637$ 3,688,863$ 4,130,277$ 5,404,081$

9,790,527 10,211,949 9,971,406 10,155,901 10,480,689 9,593,572

3,708,493 3,536,025 2,896,243 3,082,804 3,512,862 1,945,180

5,524,477 6,092,200 5,365,405 5,643,181 5,532,826 5,494,897

239,722 208,340 280,610 263,639 308,555 319,054

23,631,625 24,484,171 22,954,301 22,834,388 23,965,209 22,756,784

9,350,407 8,633,070 8,877,882 8,559,045 7,820,060 7,669,479

9,350,407 8,633,070 8,877,882 8,559,045 7,820,060 7,669,479

32,982,032$ 33,117,241$ 31,832,183$ 31,393,433$ 31,785,269$ 30,426,263$

1,038,224$ 1,288,598$ 1,557,029$ 705,004$ 434,561$ 377,481$

2,230,118 1,503,310 1,694,965 2,233,680 2,015,051 2,263,315

1,084,003 1,100,612 1,275,625 790,515 343,095 353,208

4,882,630 4,709,727 5,457,436 5,486,032 5,294,548 5,167,778

533,356 789,741 43,392 83,496 64,003 106,360

- - 505,221 673,301 671,012 894,408

9,768,331 9,391,988 10,533,668 9,972,028 8,822,270 9,162,550

10,874,750 9,890,510 9,656,556 10,160,350 10,210,515 9,524,770

- - - 189,642 - 956,200

10,874,750 9,890,510 9,656,556 10,349,992 10,210,515 10,480,970

20,643,081$ 19,282,498$ 20,190,224$ 20,322,020$ 19,032,785$ 19,643,520$

135

2019 2018 2017 2016

Net (Expenses) Revenue

Governmental activities (20,869,157)$ (16,596,608)$ (18,549,184)$ (14,520,082)$

Business-type activities 2,238,041 2,783,817 2,367,545 1,579,422

Total primary government net expense (18,631,116)$ (13,812,791)$ (16,181,639)$ (12,940,660)$

General Revenues and Other Changes

in Net Position


Taxes

Property taxes 10,049,035$ 8,861,579$ 8,507,756$ 7,669,631$

Sales taxes 5,710,960 5,591,271 5,148,801 4,717,022

Franchise and local taxes 1,935,460 1,936,874 1,788,815 1,837,245

Other revenues 624,662 735,762 859,401 625,210

Investment earnings 216,726 163,508 105,995 45,826

Gain (Loss) on sale of capital assets - - 50,000 (567,217)

Change in interest in recipient org. - - - -

Transfers 5,024 1,539,284 2,023,317 1,687,361

Total governmental activities 18,541,867 18,828,278 18,484,085 16,015,078


Miscellaneous - - -


Gain (Loss) on sale of capital assets - - - (45,943)

Transfers (5,024) (1,539,284) (2,023,317) (1,687,361)

Total business-type activities 280,163 (1,430,416) (1,989,819) (1,704,319)

Total primary government 18,822,030$ 17,397,862$ 16,494,266$ 14,310,759$


Governmental activities (2,327,290)$ 2,231,670$ (65,099)$ 1,494,996$

Business-type activities 2,518,204 1,353,401 377,726 (124,897)

Total primary government 190,914$ 3,585,071$ 312,627$ 1,370,099$

Note: City of Denison Texas first applied GASB Statement No.34 in fiscal year 2002.



City of Denison, Texas CHANGES IN NET POSITION (Continued)


136

2015 2014 2013 2012 2011 2010

(13,863,294)$ (15,092,183)$ (12,420,633)$ (12,862,360)$ (15,142,939)$ (13,594,234)$

1,524,343 1,257,440 778,674 1,790,947 2,390,455 2,811,491

(12,338,951)$ (13,834,743)$ (11,641,959)$ (11,071,413)$ (12,752,484)$ (10,782,743)$

7,170,676$ 6,793,411$ 6,422,518$ 6,316,736$ 6,075,353$ 5,670,045$

4,417,481 4,154,796 4,228,912 4,037,861 3,746,744 3,788,852

1,861,481 1,965,979 1,848,653 1,847,884 1,786,751 1,715,403

32,325 375,221 239,834 255,223 282,430 203,306

143,629 33,241 42,015 26,380 35,599 97,678

- - - - - -

- - 12,855 17,654 (10,279) 6,394

1,258,471 1,225,000 1,233,324 1,033,309 902,066 909,596

14,884,063 14,547,648 14,028,111 13,535,047 12,818,664 12,391,274

- - 3,150 - - -

25,572 13,976 19,362 44,603 58,816 94,240

- - - - - -

(1,258,471) (1,225,000) (1,233,324) (1,033,309) (902,066) (909,596)

(1,232,899) (1,211,024) (1,210,812) (988,706) (843,250) (815,356)

13,651,164$ 13,336,624$ 12,817,299$ 12,546,341$ 11,975,414$ 11,575,918$

1,020,769$ (544,535)$ 1,607,478$ 672,687$ (2,324,275)$ (1,202,960)$

291,444 46,416 (432,138) 802,241 1,547,205 1,996,135

1,312,213$ (498,119)$ 1,175,340$ 1,474,928$ (777,070)$ 793,175$

137

Bingo and

Fiscal Property Franchise Sales Hotel/Motel Mixed Beverage

Year Tax Tax Tax Tax Tax Total

2010 5,670,045$ 1,502,820$ 3,788,852$ 164,530$ 48,053$ 11,174,300$

2011 6,075,353$ 1,475,215$ 3,746,744$ 269,706$ 41,830$ 11,608,848$

2012 6,316,736$ 1,485,993$ 4,037,861$ 328,853$ 33,038$ 12,202,481$

2013 6,422,518$ 1,426,639$ 4,228,912$ 380,087$ 41,927$ 12,500,083$

2014 6,793,411$ 1,475,585$ 4,154,796$ 435,366$ 55,028$ 12,914,186$

2015 7,192,805$ 1,441,300$ 4,417,481$ 368,846$ 51,335$ 13,471,767$

2016 7,471,696$ 1,383,876$ 4,562,899$ 409,558$ 43,811$ 13,871,840$

2017 8,507,756$ 1,371,528$ 5,148,801$ 371,452$ 45,835$ 15,445,372$

2018 8,616,569$ 1,457,997$ 5,553,586$ 477,341$ 48,112$ 16,153,605$

2019 9,507,352$ 1,458,202$ 6,330,200$ 422,336$ 54,922$ 17,773,011$


City of Denison, Texas GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE


139

2019 2018 2017 2016

General Fund

Nonspendable 327,573$ 88,498$ 109,918$ 113,434$

Restricted - - - -

Committed 386,981 751,725 1,706,012 1,706,012

Assigned - - - -

Unassigned 6,251,513 6,857,817 6,187,054 5,743,218

Total general fund 6,966,067$ 7,698,040$ 8,002,984$ 7,562,664$

All Other Governmental Funds

Restricted 1,645,398$ 2,385,232$ 13,890,862$ 10,853,153$

Committed 935,347 877,138 728,932 674,417

Assigned 235,516 245,622 247,863 277,204

Unassigned (75,058) (260,195) (2,127) (21,824)

Total all other governmental funds 2,741,203$ 3,247,797$ 14,865,530$ 11,782,950$


Notes: The City implemented GASB Statement No. 54

"Fund Balance Reporting and Governmental Fund Type Definitions" in fiscal year 2011.

(modified accrual basis of accounting)


FUND BALANCES OF GOVERNMENTAL FUNDS


140

2015 2014 2013 2012 2011 2010

86,063$ 111,432$ 124,192$ 141,305$ 180,128$ 142,099$

- 26,461 16,762 648,060 748,060 778,060

1,781,095 1,358,671 1,322,492 1,741,448 1,141,236 -

- - 637,602 200,000 - 1,220,913

6,168,066 5,590,148 3,942,369 2,728,210 2,531,065 35,869,995

8,035,224$ 7,086,712$ 6,043,417$ 5,459,023$ 4,600,489$ 38,011,067$

1,848,023$ 3,365,871$ 4,629,922$ 2,401,922$ 3,117,398$ 3,076,161$

514,828 399,939 765,561 423,713 232,447 -

220,142 250,138 265,716 1,349,847 1,385,580 208,018

(16,858) (11,919) (7,567) (46,610) - 2,358,999

2,566,135$ 4,004,029$ 5,653,632$ 4,128,872$ 4,735,425$ 5,643,178$

141

2019 2018 2017 2016

Revenues

Taxes 17,686,489$ 16,324,904$ 15,470,740$ 14,225,726$

Licenses, permits, and fees 607,804 523,420 512,456 304,911

Operating contributions 797,349 25,900 224,280 406,300

Capital contributions 445,540 1,587,038 793,519 793,519

Intergovernmental - - - -

Charges for services 9,560,848 9,321,868 8,889,643 8,448,748

Fines and forfeitures 400,547 601,428 456,094 568,599


From other agencies - - - -

Other revenues 624,662 735,762 859,401 774,822

Total Revenues 30,339,965 29,283,828 27,312,128 25,568,451

Expenditures

Current:

General government 5,256,116 5,496,424 5,545,323 4,686,707

Public safety 11,618,750 10,467,072 10,597,386 10,023,933


Public works 6,382,160 5,740,187 5,751,542 5,420,051

Capital outlay 2,399,460 16,041,273 1,930,282 744,496

Debt Service:

Principal retirement 2,656,495 2,387,944 1,787,351 1,159,923

Interest and fiscal changes 531,477 580,881 534,827 311,704

Total Expenditures 35,312,528 44,688,217 32,912,462 26,499,557 Excess of Revenues Over (Under)

Expenditures (4,972,563) (15,404,389) (5,600,334) (931,106)

Other financing sources (uses)

Bond issuance - 1,000,000 7,350,000 7,475,000

Payments on refunding bonds - - - -

Net bond premium and discounts - - 117,671 -

Capital lease issuance 1,887,500 790,378 - 463,000

Proceeds from sale of capital assets - - 50,000 50,000

Unrealized gain on investments - - - -

Insurance refund - - - -

Change in interest in recipient org. - - - -

Transfers, net 1,846,493 2,019,378 1,645,934 1,687,361

Total Other Financing Sources (Uses) 3,733,993 3,809,756 9,163,605 9,675,361

Net change in fund balances (1,238,570)$ (11,594,633)$ 3,563,271$ 8,744,255$

Debt service as percentage of

noncapital expenditures 10.2% 10.4% 8.3% 6.0%


City of Denison, Texas CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS


(modified accrual basis of accounting)

142

2015 2014 2013 2012 2011 2010

13,479,894$ 12,897,439$ 12,544,400$ 12,154,825$ 11,585,461$ 11,159,232$

261,607 280,531 253,606 414,469 174,622 222,503

79,525 72,329 - 16,682 60,524 93,927

- - 125,022 124,063 234,322 159,641

453,831 717,412 267,500 100,000 - -

8,448,544 8,458,972 8,048,351 8,288,931 7,520,141 7,719,009

543,089 520,751 581,630 574,437 360,698 329,457

32,325 33,241 42,016 26,380 35,599 97,678

- - - 549,238 441,007 750,083

543,241 774,833 903,449 255,223 282,430 203,306

23,842,056 23,755,508 22,765,974 22,504,248 20,694,804 20,734,836

4,156,486 4,844,552 4,524,438 3,469,523 3,954,476 4,944,257

9,643,623 9,506,635 9,113,861 9,770,046 9,893,278 9,090,265

6,292,975 6,379,924 3,196,805 3,006,264 3,384,874 1,839,769

2,317,968 2,677,186 4,870,220 5,135,350 4,961,129 4,970,773

3,318,030 2,790,311 1,555,758 759,821 769,304 1,065,112

1,094,496 955,440 1,071,841 845,590 772,842 879,903

281,184 257,640 250,202 273,271 311,542 320,378

27,104,762 27,411,688 24,583,125 23,259,865 24,047,445 23,110,457

(3,262,706) (3,656,180) (1,817,151) (755,617) (3,352,641) (2,375,621)

- 1,435,000 5,682,800 - - -

- - (3,530,000) - - -

- - 337,469 - - -

1,600,000 582,000 400,049 123,951 302,753 410,000

- - 500,000 47,785 29,491 14,194

- - - - - -

- - - - - -

- - - - - 6,394

1,258,471 1,225,000 1,184,068 1,033,309 902,066 909,596

2,858,471 3,242,000 4,574,386 1,205,045 1,234,310 1,340,184

(404,235)$ (414,180)$ 2,757,235$ 449,428$ (2,118,331)$ (1,035,437)$

5.8% 4.9% 5.7% 5.0% 4.7% 5.4%

143

Fiscal Year Less: Total

Ended Residential Commercial Personal Productivity Loss Assessed

Sept. 30 Property Property Property & Homestead Cap Value

2010 552,621,936$ 410,587,579$ 273,770,033$ (31,488,327) 1,205,491,221$

2011 557,571,793$ 492,031,692$ 288,367,033$ (25,072,375) 1,312,898,143$

2012 530,274,934$ 507,147,343$ 273,003,942$ (22,012,839) 1,288,413,380$

2013 531,766,639$ 517,718,636$ 310,787,640$ (22,604,860) 1,337,668,055$

2014 531,789,823$ 536,927,831$ 303,858,382$ (19,543,229) 1,353,032,807$

2015 544,960,592$ 633,865,861$ 311,895,598$ (24,957,931) 1,465,764,120$

2016 568,909,108$ 684,004,866$ 334,436,044$ (26,132,144) 1,561,217,874$

2017 644,858,864$ 712,430,939$ 321,533,002$ (49,001,553) 1,629,821,252$

2018 708,301,353$ 773,117,625$ 311,424,971$ (47,844,376) 1,744,999,573$

2019 823,905,532$ 829,016,556$ 318,085,182$ (64,664,017) 1,906,343,253$

Source: Grayson County Appraisal District - Certified Grand Totals Reports As of Certification

Notes: Property is reassessed at least every three years.

Tax rates are per $100 of assessed value.

Residential: includes single family, vacant lots, acreage, farm and ranch, and minerals

Commercial: includes real property, industrial and utilities

City of Denison, Texas ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY


Real & Non Real Property

144

Total Taxable

Direct Actual Value as a

Tax Taxable Percentage of

Rate Value Assessed Value

0.594072 945,023,306$ 78.39%

0.594072 1,039,137,992$ 79.15%

0.653377 1,018,414,023$ 79.04%

0.653377 1,006,714,831$ 75.26%

0.653377 1,052,058,806$ 77.76%

0.653377 1,107,802,263$ 75.58%

0.653377 1,181,434,177$ 75.67%

0.643377 1,325,736,786$ 81.34%

0.633377 1,429,444,394$ 81.92%

0.633377 1,573,456,675$ 82.54%

145

General Denison GraysonFiscal Year Operating/ Obligation Independent County

Ended General Debt Total School Grayson JuniorSept. 30 Rate Service Direct District County College

2010 0.498544 0.095528 0.594072 1.277100 0.490900 0.183715

2011 0.514572 0.079500 0.594072 1.271200 0.490900 0.181800

2012 0.571038 0.082339 0.653377 1.468200 0.490900 0.181800

2013 0.571038 0.082339 0.653377 1.481200 0.490900 0.181800

2014 0.581121 0.072256 0.653377 1.499200 0.490900 0.181610

2015 0.569980 0.083397 0.653377 1.499200 0.490900 0.181500

2016 0.575883 0.077494 0.653377 1.499200 0.490900 0.181400

2017 0.578521 0.064856 0.643377 1.499200 0.473719 0.181300

2018 0.530791 0.102586 0.633377 1.499200 0.460366 0.181200

2019 0.521438 0.111939 0.633377 1.499200 0.441810 0.177334

Source: Grayson County Appraisal District - Tax Rates

Notes:

City Direct Rates Overlapping Rates

Overlapping rates are those of local and county governments that apply to property owners

within the City of Denison.

City of Denison, Texas DIRECT AND OVERLAPPING PROPERTY TAX RATES


147

Taxable Assessed Percentage of

Taxpayer Type of Business Value Rank Taxable Value

UHS of Texoma Inc. (Texoma Medical

Center) Medical Facility 140,000,000$ 1 7.97%

Universal Health Services Medical Facility 38,520,595 2 2.19%

Ruiz Food Products, Inc. Food Processing 35,356,794 3 2.01%

Grayson Properties LP Housing Development 22,240,055 4 1.27%

Ruiz Food Products, Inc. Food Processing 22,002,900 5 1.25%

Spectrum Brands INC Manufacturing 20,476,462 6 1.17%

Covenant Denison Holdings LLC Housing Development 18,934,873 7 1.08%

MFT Twin Oaks LLC Housing Development 13,757,842 8 0.78%

Union Pacific Railroad Co Railroad 13,603,193 9 0.77%

Oncor Electric Delivery Co LLC Electric Provider 13,199,186 10 0.75%

UHS of Texoma Inc Medical Facility - n/a n/a

Wal-Mart Stores Inc. #3521 Large Retailer - n/a n/a

Wal-Mart Stores Inc #0147 Large Retailer - n/a n/a

Caterpillar Global Mining Mining Equipment & Services - n/a n/a

Top Ten Taxpayers Total: 338,091,900$ 19.25%

City-Wide Total Taxable Value: 1,755,957,532$

Source: Grayson Central Appraisal District - Top Ten Taxpayers

City of Denison, Texas PRINCIPAL PROPERTY TAX PAYERS

Current Fiscal Year and Nine Years Ago (Unaudited)

2019

148

Taxable Assessed Percentage of

*Value Rank Taxable Value

30,251,269$ 2 2.98%

24,500,000 3 2.41%

7,885,987 8 0.78%

- n/a n/a

- n/a n/a

31,103,480 1 3.06%

- n/a n/a

- n/a n/a

20,380,030 4 2.01%

11,082,070 5 1.09%

11,035,372 6 1.09%

9,259,114 7 0.91%

6,682,047 9 0.66%

6,101,008 10 0.60%

158,280,377$ 15.60%

1,014,797,660$

2010

149

Fiscal Year Total Tax Collections in

Ended Levy for Subsequent

Sept. 30 Fiscal Year Amount % of Levy Years Amount % of Levy

2010 5,729,597$ 5,500,916$ 96.01% 204,114$ 5,705,030$ 99.57%

2011 6,068,138$ 5,888,654$ 97.04% 159,344$ 6,047,999$ 99.67%

2012 6,411,247$ 6,229,600$ 97.17% 162,079$ 6,391,680$ 99.69%

2013 6,418,152$ 6,270,222$ 97.70% 129,185$ 6,399,407$ 99.71%

2014 6,691,394$ 6,548,938$ 97.87% 117,465$ 6,666,402$ 99.63%

2015 7,055,238$ 6,927,406$ 98.19% 98,261$ 7,025,667$ 99.58%

2016 7,501,037$ 7,381,511$ 98.41% 83,915$ 7,465,426$ 99.53%

2017 8,309,353$ 8,164,388$ 98.26% 95,421$ 8,259,809$ 99.40%

2018 8,688,391$ 8,542,962$ 98.33% 71,366$ 8,614,328$ 99.15%

2019 9,520,567$ 9,349,717$ 98.21% -$ 9,349,717$ 98.21%

Source: Grayson County Tax Assessor and Collector:

Recap & Standings Report.

Tax Roll & Levy Annual Report.

City of Denison, Texas PROPERTY TAX LEVIES AND COLLECTIONS


Collected within the

Fiscal Year of the Levy Total Collections to Date

151

Certificates General

Fiscal of Obligation Capital Notes Tax Issuance

Year Obligation Bonds Lease Payable Notes Premiums

2010 -$ 7,559,628$ 834,593$ -$ -$ -$

2011 -$ 7,123,340$ 799,504$ -$ -$ -$

2012 -$ 6,659,311$ 527,865$ -$ -$ -$

2013 2,553,952$ 6,762,864$ 600,197$ -$ -$ -$

2014 2,473,620$ 5,041,618$ 970,311$ -$ 1,435,000$ -$

2015 2,373,290$ 4,481,172$ 2,264,737$ -$ 1,240,000$ -$

2016 9,747,960$ 3,905,726$ 2,376,817$ -$ 1,040,000$ -$

2017 14,707,290$ 3,209,084$ 2,004,263$ 1,550,000$ 840,000$ 379,873$

2018 14,369,982$ 2,556,200$ 2,455,635$ 1,389,000$ 635,000$ 341,245$

2019 13,096,383$ 2,082,400$ 3,813,038$ 1,220,000$ 425,000$ 302,617$

Sources: Details regarding the City's outstanding debt can be found in the notes to the financial statements.

City of Denison, Texas RATIOS OF OUTSTANDING DEBT BY TYPE



152

Certificates General Total Percentage

of Obligation Revenue Capital Issuance Issuance Primary of Personal Per

Obligation Bonds Bonds Lease Discount Premiums Government Income Capita*

12,719,126$ -$ 2,910,000$ 522,132$ -$ -$ 24,545,479$ 5% 1,011$

12,375,736$ -$ 2,140,000$ 616,115$ -$ -$ 23,054,695$ 5% 979$

18,521,074$ -$ 1,340,000$ 383,291$ -$ -$ 27,431,541$ 6% 1,204$

17,880,139$ -$ -$ 92,740$ -$ -$ 27,889,892$ 6% 1,231$

17,924,299$ 1,021,100$ -$ 17,756$ -$ -$ 28,883,705$ 6% 1,271$

23,369,865$ 1,006,391$ -$ 9,110$ -$ -$ 34,744,565$ 7% 1,517$

23,896,855$ 991,682$ -$ -$ -$ -$ 41,959,040$ 9% 1,790$

26,767,548$ 897,773$ -$ -$ (34,527)$ (31,507)$ 50,289,797$ 10% 2,126$

31,090,022$ 748,800$ -$ 353,968$ (31,506)$ 1,455,795$ 55,364,141$ 9% 2,271$

31,573,621$ 3,457,600$ -$ 305,632$ (13,032)$ 2,088,699$ 58,351,958$ 10% 2,323$


153

% of Net

Less Bonded Debt

Fiscal Estimated Assessed Gross Debt Service Net to Assessed Debt per

Year Population Value Bonded Debt Funds Bonded Debt Value Capita

2010 24,269 1,205,491,221$ 21,945,000$ 565,060$ 21,379,940$ 1.77% 881$

2011 23,539 1,312,898,143$ 20,400,000$ 400,570$ 19,999,430$ 1.52% 850$

2012 22,784 1,288,413,380$ 25,320,000$ 102,360$ 25,217,640$ 1.96% 1,107$

2013 22,665 1,337,668,055$ 25,785,000$ 248,424$ 25,536,576$ 1.91% 1,127$

2014 22,722 1,353,032,807$ 25,715,000$ 6,139$ 25,708,861$ 1.90% 1,131$

2015 22,907 1,465,764,120$ 30,285,000$ 108,000$ 30,177,000$ 2.06% 1,317$

2016 23,447 1,561,217,874$ 39,167,644$ 207,881$ 38,959,763$ 2.50% 1,662$

2017 23,654 1,629,821,252$ 46,801,568$ 224,608$ 46,576,960$ 2.86% 1,969$

2018 24,380 1,744,999,573$ 49,741,249$ 280,132$ 49,461,117$ 2.83% 2,029$

2019 25,118 1,906,343,253$ 50,937,621$ 628,365$ 50,309,256$ 2.64% 2,003$

Sources: Assessed Value obtained from the Grayson County Appraisal District

Gross Bonded Debt obtained from the Schedule of Bonds Payable and Total Bonds for Fiscal Year.

Debt Service Figures Obtained from Financial Statements.

City of Denison, Texas RATIOS OF GENERAL BONDED DEBT OUTSTANDING


Net Bonded

154

Percentage of

Debt City Share of

Governmental Subdivision Gross Bonded Applicable to Overlapping

Debt Area Debt

Denison Independent School District 75,939,560$ 73.64% 55,921,892$

Grayson County 41,185,000$ 0.00% 6,433,097$

Grayson County JCD 25,385,000$ 15.65% 3,972,753$

Pottsboro Independent School District 8,265,000$ 4.04% 333,906$

Sherman Independent School District 214,515,000$ 0.80% 1,716,120$

365,289,560$ 68,377,767$

City of Denison 20,939,438$

Total Direct and Overlapping Debt 89,317,205$

Ratio of overlapping bonded debt to

taxable assessed valuation

(valued at 100% of market value) 5.12%

Per capita overlapping bonded debt 3,556$

Source: "Texas Municipal Report" as of September 30, 2019, prepared by the Municipal Advisory Council.

a resident, and therefore responsible for repaying the debt, of each overlapping government.

total taxable assessed value.


As of September 30, 2019 (Unaudited)

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

Applicable percentages were estimated by determining the portion of the overlapping government's taxable

assessed value that is within the City of Denison's boundaries and dividing it by the overlapping government's

Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of

the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that

is borne by the residents and businesses of the City of Denison. This process recognizes that, when

considering the City of Denison's ability to issue and repay long-term debt, the entire debt burden borne by the

residents and businesses should be taken into account. However, this does not imply that every taxpayer is

(1) The percentage of overlapping debt applicable is estimated using the taxable assessed property values.

155

2010 2011 2012 2013 2014 2015

Tax Rate Limit 2.50$ 2.50$ 2.50$ 2.50$ 2.50$ 2.50$

Current Tax Rate 0.594072 0.594072 0.653377 0.653377 0.653377 0.653377

Available Tax Rate 1.90593$ 1.90593$ 1.84662$ 1.84662$ 1.84662$ 1.84662$

City of Denison, Texas LEGAL DEBT MARGIN INFORMATION


Note: There is no direct debt limitation in the City Charter or under state law.

The City operates under a Home Rule Charter (Article XI, Section 5, Texas

Constitution), that limits the maximum tax rate, for all city purposes, to $2.50 per

$100 assessed valuation. Administratively, the Attorney General of the State of

Texas will permit allocation of $1.50 of the $2.50 maximum tax rate for general

obligation debt service.

156

2016 2017 2018 2019

2.50$ 2.50$ 2.50$ 2.50$

0.653377 0.643377 0.633377 0.633377

1.84662$ 1.85662$ 1.86662$ 1.86662$

157

Fiscal Total Less: Operating Net Available Times

Year Revenues Expenses Revenue Principal Interest Coverage

2010 9,520,204$ 6,171,153$ 3,349,051$ 2,075,000$ 538,350$ 1.28

2011 10,210,515$ 6,604,232$ 3,606,283$ 1,295,000$ 555,490$ 1.95

2012 10,349,992$ 7,160,820$ 3,189,172$ 905,000$ 805,485$ 1.86

2013 9,659,707$ 7,645,062$ 2,014,645$ 775,000$ 713,910$ 1.35

2014 9,890,510$ 6,965,274$ 2,925,236$ 1,060,000$ 675,713$ 1.69

2015 10,874,750$ 7,746,416$ 3,128,334$ 976,000$ 615,713$ 1.97

2016 11,035,471$ 7,521,650$ 3,513,821$ 1,111,000$ 941,888$ 1.71

2017 11,925,469$ 7,535,900$ 4,389,569$ 1,370,000$ 796,903$ 2.03

2018 12,555,348$ 8,744,362$ 3,810,986$ 1,580,819$ 1,002,773$ 1.48

2019 12,555,811$ 7,351,257$ 5,204,554$ 1,807,250$ 1,199,012$ 1.73

Notes: a Total Revenues does not include non-operating revenues.

b Operating Expenses only, no transfers or depreciation.

c Includes Principal and Interest

Water and Sewer Revenue Bonds

Debt Service

City of Denison, Texas PLEDGED-REVENUE COVERAGE


a b c

158

Fiscal Estimated Personal Per Capita Median Grade School Unemployment

Year Population Income Income Age Enrollment Rate

(DISD figures only)

2010 24,269 486,836,140$ 20,060$ 40.2 2,127 8.60%

2011 23,539 476,782,445$ 20,255$ 39.9 2,145 8.80%

2012 22,784 480,332,288$ 21,082$ 40.5 2,111 6.70%

2013 22,665 449,152,305$ 19,817$ 40.5 2,184 7.20%

2014 22,722 507,473,148$ 22,334$ 41.8 2,215 5.70%

2015 22,907 473,716,760$ 20,680$ 41.8 2,600 4.10%

2016 23,447 492,036,702$ 20,985$ 39.5 2,555 3.60%

2017 23,654 528,288,436$ 22,334$ 41.8 2,610 3.00%

2018 24,380 614,229,720$ 25,194$ 39.5 2,675 3.50%

2019 25,118 633,802,494$ 25,233$ 39.5 2,660 2.90%

Sources:

1

2

3

4

5

Estimated based on demographic data obtained from the Denison Development Alliance.

Denison ISD Human Resources Department.

U.S. Department of Labor: http://www.bls.gov/lau/#tables (Unemployment Rates for Metropolitan

Areas> Sherman Denison Statistical Area)

City of Denison, Texas DEMOGRAPHIC AND ECONOMIC STATISTICS




2 3 4 5

159

Name of Employer Location Product

Health Care Services

El Monterey Frozen Foods

Walmart Retail

Insurance Claims Processing

Education - Public Schools

Drilling Machinery

City of Denison Government Agency

Dialogue Direct Contact Centers Customer Sales & Service

ACS Manufacturing Acoustical Equipment Enclosures

Grayson College

5016 US Hwy 75 S 2410 Texoma Drive 401 N Us Hwy 75 4636 US Hwy 75 S 1201 S Rusk

3501 FM 1417

300 W Main 2415 S Austin

1601 Commerce Blvd 6101 Grayson Dr Education - College

Kwikset Corporation Door Locks

Champion Cooler Corporation Evaporative Coolers

Total Employment Above:

Total Estimated Population:

Source: Denison Development Alliance (DDA) website.

* The City could not provide information going back 10 years. The

furthest available information was for fiscal year 2013.

Caterpillar

CIGNA

Texoma Medical Center

Ruiz Foods

Denison Independent School District

City of Denison, Texas PRINCIPAL EMPLOYERS

Current Fiscal Year and Six Years Ago (Unaudited)

160

Percentage Percentage

No. of of Total City No. of of Total City

Employees Rank Employment Employees Rank Employment

3,500 1 13.93% 1,375 1 6.07%

1,198 2 4.77% 705 3 3.11%

900 3 3.58% n/a n/a n/a

700 4 2.79% 1,212 2 5.35%

680 5 2.71% 624 4 2.75%

400 6 1.59% 460 5 2.03%

372 7 1.48% 310 7 1.37%

345 8 1.37% 408 6 1.80%

340 9 1.35% n/a n/a n/a

240 10 0.96% 230 9 1.01%

n/a n/a n/a 260 8 1.15%

n/a n/a n/a 220 10 0.97%

8,675 34.54% 5,804 25.61%

25,118 22,665

2013*2019

161

Function / Program 2010 2011 *2012 2013 2014

General government 31 30 32 35 25

Cemetery 4 4 5 5 6

Library n/a 13 8 11 17

Municipal Court 2 2 2 2 3

Police & Communications 55 55 53 41 56

Fire (& EMS) 48 49 34 40 35

Emergency Medical Services 40 41 27 33 28

Animal Control 2 2 2 2 2

Public Works 58 56 51 55 58

Parks and Recreation 21 19 13 15 15

Water and Sewer Systems 54 52 49 53 51

315 324 275 291 295

Source: Employee Services Division

* 2012 - FTE calculations for Fire & EMS employees were changed from the standard 2,080 hours per year to 2,912 hours

pursuant to the Fair Labor Standards Act 207k exemption.

2016 - Fire and Emergency Medical Service Personnel were combined under the same division.

2016 - Parks Maintenance Division moved from Public Works to Parks & Recreation.

Notes: An FTE is determined by converting the hours worked by all employees (both full-time & part-time)

under that function/program into the hours equivalent to a full-time worker. An FTE is considered to 2,080

hours (8 hr per day x 5 work days x 52 weeks) for the fiscal year.

Full-time Equivalent Employees for Fiscal Year

City of Denison, Texas FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM


162

2015 2016 2017 2018 2019

26 27 27 30 31

5 5 5 5 4

12 12 12 14 14

3 3 4 4 4

58 60 57 58 60

31 62 59 61 61

31 - - 0 0

2 2 2 2 2

51 44 44 43 43

17 28 28 32 34

55 63 58 56 58

292 306 296 305 311

Full-time Equivalent Employees for Fiscal Year

163

2010 2011 2012 2013 2014

Function/Program

Public Safety

Municipal Court

Number of cases filed 5,512 5,759 4,999 7,405 9,035

Police

Physical Arrests 1,756 1,490 1,495 2,093 2,215

Traffic Violations 1 3,509 3,755 3,173 8,662 9,053

Fire

Number of Incidents/Responses 2 3,171 5,015 4,571 4,080 3,992

Animal Control

Number of calls 3,078 3,704 3,827 3,552 2,826

Public Works

Streets maintained (miles) 171.4 171.4 171.6 172.0 172.1

Water and Wastewater

New connections 11 5 21 17 22

Annual gallons of water pumped (thousands) 1,410,194 2,018,041 1,789,752 1,336,516 1,645,984

Miles of water mains maintained 212.7 213.3 214.5 216.3 217.1

Source: City Departments

Notes: 1. FY2013 is the first year that traffic violations include warnings in addition to actual citations.

2. FY2009 is first year that fire engines were sent out with ambulance runs.

Beginning with FY2015 totals include both fire and medical responses.

Indicators are not available for the general government function

City of Denison, Texas OPERATING INDICATORS BY FUNCTIONS/PROGRAM


164

2015 2016 2017 2018 2019

5,455 5,852 5,248 3,748 3,567

1,873 1,994 1,809 1,197 848

8,978 9,595 8,101 6,752 6,672

5,150 4,931 5,413 5,557 5,386

3,224 3,612 2,609 2,537 3,208

172.6 173.2 173.2 174.7 175.3

38 92 161 177 184

1,660,087 1,641,722 1,476,599 1,687,602 1,590,020

219.1 219.1 221.2 223.5 223.9

165

2010 2011 2012 2013 2014 2015

Function/Program

Public Safety

Police

Stations 1 1 1 1 1 1

Patrol Units 10 10 10 13 12 13

Fire

Stations 3 3 3 3 3 3

Public Works

Streets (miles) 171.4 171.4 171.6 172.0 172.1 172.6

Parks and Recreation

Parks (acreage) 345.6 345.6 345.6 345.6 348.2 348.2

Number of playgrounds 13 13 13 13 14 14

Water and Wastewater

Water main (miles) 212.7 213.3 214.5 216.3 217.1 219.1

Sewer mains (miles) 192.8 192.9 193.6 198.5 198.6 200.0

Storm drainage (miles) 10.9 10.9 10.9 11.2 11.2 11.8

Source: City departments

City of Denison, Texas CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM


166

2016 2017 2018 2019

1 1 1 1

13 13 13 15

3 3 3 3

173.2 173.2 174.7 175.3

338.1 338.1 400 565.6

12 13 16 16

219.1 221.2 223.5 223.9

200.1 200.6 201.9 202.3

11.8 12.1 13.1 13.7

167

CONTINUING DISCLOSURE

(Unaudited)

169

2018 -19 Market Valuation Established by Grayson County Appraisal District 1,971,007,270$

Less:

Productivity Loss 22,460,161$

Homestead Cap 42,203,856$

Exemption DP - Disabled 6,007,694$

Exemption OV65 - Over 65 31,109,295$

Exemption DV - Disabled Veterans 13,795,532$

Exemption EX - Exempt Property 197,652,635$

Exemption FR 55,890,773$

Exemption AB 27,182,214$

Exemption PC 573,261$

Exemption PPV 53,941$

Exemption SO 368,839$ 397,298,201$

2018-19 Taxable Assessed Valuation 1,573,709,069$

General Obligation Debt Payable from Ad Valorem Taxes 42,155,000$

Less: Self-supporting Debt (Combination Tax & Revenue Certificates of Obligation) 17,157,415$

Net General Obligation Debt Payable from Ad Valorem Taxes 24,997,585$

General Obligation Interest and Sinking Fund as of September 30, 2019 628,365$

Ratio General Obligation Tax Debt to Taxable Assessed Valuation 1.59%

2019 Estimated Population 25,118

Per Capita Taxable Assessed Valuation 62,653$

Per Capita Net General Obligation Debt Payable from Ad Valorem Taxes 1,678$

Source: Grayson County Appraisal District - 2017 Certified Roll (As of Certification)

City of Denison, Texas VALUATION, EXEMPTIONS, AND GENERAL OBLIGATION DEBT

September 30, 2019 (Unaudited)

171

Category Amount % of Total Amount % of Total

Real-Residential Single-Family 857,100,275$ 43.49% 734,358,391$ 40.96%

Real-Residential Mobile Home 5,494,764$ 0.28% 6,280,213$ 0.35%

Real-Other Improvements 1,720,187$ 0.09% 1,540,512$ 0.09%

Real-Residential, Multi-Family 40,188,925$ 2.04% 35,344,836$ 1.97%

Real-Vacant Lots/Tracts 37,310,013$ 1.89% 33,165,813$ 1.85%

Real-Acreage Farm and Ranch 22,723,871$ 1.15% 22,095,042$ 1.23%

Real-Undeveloped Land 13,524,591$ 0.69% 12,479,957$ 0.70%

Real-Commercial 425,900,291$ 21.61% 381,817,579$ 21.30%

Real-Industrial 47,668,977$ 2.42% 51,460,502$ 2.87%

Real and Intangible Personal, Utilities 42,870,428$ 2.18% 39,250,234$ 2.19%

Tangible Personal, Commercial 108,174,038$ 5.49% 99,966,693$ 5.58%

Tangible Commercial, Industrial 158,207,243$ 8.03% 163,816,357$ 9.14%

Tangible Personal, Mobile Homes 449,928$ 0.02% 452,794$ 0.03%

Tangible Personal, Other 207,200,656$ 10.51% 205,980,645$ 11.49%

Real Property, Inventory 2,473,083$ 0.13% 4,834,381$ 0.27%

Total Appraised Value 1,971,007,270 100.00% 1,792,843,949 100.00%

Less: Total Exemptions/Reductions 64,664,017 47,844,376

Taxable Assessed Value 1,906,343,253$ 1,744,999,573$

Category Amount % of Total Amount % of Total

Real-Residential Single-Family 559,623,842$ 40.77% 561,472,662$ 41.28%

Real-Residential Mobile Home 3,886,979$ 0.28% 3,925,666$ 0.29%

Real-Other Improvements 1,458,822$ 0.11% 1,487,142$ 0.11%

Real-Residential, Multi-Family 29,691,769$ 2.16% 30,411,718$ 2.24%

Real-Vacant Lots/Tracts 30,121,292$ 2.19% 24,361,849$ 1.79%

Real-Acreage Farm and Ranch 15,379,772$ 1.12% 17,684,249$ 1.30%

Real-Undeveloped Land 6,625,957$ 0.48% 4,723,367$ 0.35%

Real-Commercial 305,451,398$ 22.25% 302,320,816$ 22.23%

Real-Industrial 37,498,437$ 2.73% 37,746,105$ 2.77%

Real and Intangible Personal, Utilities 44,544,120$ 3.25% 38,268,594$ 2.81%

Tangible Personal, Commercial 92,536,831$ 6.74% 93,601,112$ 6.88%

Tangible Commercial, Industrial 160,374,293$ 11.68% 173,093,377$ 12.72%

Tangible Personal, Mobile Homes 424,896$ 0.03% 451,212$ 0.03%

Tangible Personal, Other 83,953,423$ 6.12% 69,386,328$ 5.10%

Real Property, Inventory 1,004,205$ 0.07% 1,338,718$ 0.10%

Total Appraised Value 1,372,576,036 100.00% 1,360,272,915 100.00%

Less: Total Exemptions/Reductions 19,543,229 22,604,860

Taxable Assessed Value 1,353,032,807$ 1,337,668,055$

Source: Grayson County Central Appraisal District certified taxable assessed values

CITY OF DENISON, TEXASTAXABLE ASSESSED VALUATIONS BY CATEGORY


2019 2018

2014 2013

172

2015

Amount % of Total Amount % of Total Amount % of Total

667,525,220$ 39.76% 587,302,253$ 37.00% 566,235,637$ 37.98%

4,401,753$ 0.26% 4,029,401$ 0.25% 3,982,701$ 0.27%

1,466,787$ 0.09% 1,336,417$ 0.08% 1,514,841$ 0.10%

30,576,020$ 1.82% 30,076,264$ 1.89% 31,909,976$ 2.14%

33,787,863$ 2.01% 28,284,957$ 1.78% 28,829,301$ 1.93%

21,078,706$ 1.26% 21,390,265$ 1.35% 21,688,398$ 1.45%

10,539,000$ 0.63% 9,711,330$ 0.61% 8,950,434$ 0.60%

353,777,915$ 21.07% 336,482,483$ 21.20% 312,816,944$ 20.98%

53,673,514$ 3.20% 52,798,639$ 3.33% 38,837,036$ 2.61%

49,086,040$ 2.92% 48,097,814$ 3.03% 44,869,875$ 3.01%

98,977,449$ 5.90% 93,540,112$ 5.89% 94,281,026$ 6.32%

167,041,409$ 9.95% 186,369,686$ 11.74% 165,902,052$ 11.13%

429,433$ 0.03% 423,919$ 0.03% 413,726$ 0.03%

184,973,399$ 11.02% 186,363,033$ 11.74% 169,408,224$ 11.36%

1,488,297$ 0.09% 1,143,445$ 0.07% 1,081,880$ 0.07%

1,678,822,805 100.00% 1,587,350,018 100.00% 1,490,722,051 100.00%

49,001,553 26,132,144 24,957,931

1,629,821,252$ 1,561,217,874$ 1,465,764,120$

2010

Amount % of Total Amount % of Total Amount % of Total

563,161,497$ 42.98% 580,484,463$ 43.39% 578,307,175$ 46.75%

3,887,118$ 0.30% 4,182,089$ 0.31% 4,220,988$ 0.34%

1,413,979$ 0.11% 1,136,259$ 0.08% 1,098,695$ 0.09%

30,373,661$ 2.32% 33,320,301$ 2.49% 34,782,414$ 2.81%

24,651,930$ 1.88% 24,144,792$ 1.80% 23,495,072$ 1.90%

17,827,080$ 1.36% 17,678,512$ 1.32% 18,004,710$ 1.46%

6,349,730$ 0.48% 6,529,124$ 0.49% 5,493,133$ 0.44%

297,402,264$ 22.70% 296,867,989$ 22.19% 215,864,002$ 17.45%

32,967,662$ 2.52% 33,724,249$ 2.52% 35,338,300$ 2.86%

39,254,829$ 3.00% 42,258,210$ 3.16% 39,112,840$ 3.16%

109,109,301$ 8.33% 115,293,916$ 8.62% 79,185,413$ 6.40%

118,851,644$ 9.07% 125,598,081$ 9.39% 150,339,529$ 12.15%

554,685$ 0.04% 531,103$ 0.04% 856,729$ 0.07%

63,294,105$ 4.83% 54,960,029$ 4.11% 49,511,372$ 4.00%

1,326,734$ 0.10% 1,261,401$ 0.09% 1,369,176$ 0.11%

1,310,426,219 100.00% 1,337,970,518 100.00% 1,236,979,548 100.00%

22,012,839 25,072,375 31,488,327

1,288,413,380$ 1,312,898,143$ 1,205,491,221$

2011

2017 2016

2012

173

Net G.O. Ratio of Net Net

Fiscal Taxable Tax Debt G.O. Tax Debt G.O. Tax

Year Certified Assessed Outstanding to Taxable Debt

Ended Estimated Assessed Valuation at End Assessed Per

9/30 Population Valuation Per Capita of Year* Valuation Capita

2010 24,269 1,205,491,221$ 49,672$ 6,890,000$ 0.57% 284$

2011 23,539 1,312,898,143$ 55,775$ 6,455,000$ 0.49% 274$

2012 22,784 1,288,413,380$ 56,549$ 6,005,000$ 0.47% 264$

2013 22,665 1,337,668,055$ 59,019$ 6,165,000$ 0.46% 272$

2014 22,722 1,353,032,807$ 59,547$ 5,435,000$ 0.40% 239$

2015 22,907 1,465,764,120$ 63,988$ 4,925,000$ 0.34% 215$

2016 23,447 1,561,217,874$ 66,585$ 4,400,000$ 0.28% 188$

2017 23,654 1,629,821,252$ 68,903$ 3,860,000$ 0.24% 163$

2018 24,380 1,744,999,573$ 71,575$ 3,305,000$ 0.19% 136$

2019 25,118 1,906,343,253$ 75,896$ 5,540,000$ 0.29% 221$

Sources: Certified Assessed Valuation obtained from the Grayson County Appraisal District

Notes: * Does not include self-supporting debt

City of Denison, Texas VALUATION AND GENERAL OBLIGATION DEBT HISTORY


174

Interest % of

and Total Tax

Fiscal Tax General Sinking Total Current Tax % of Levy Collections

Year Rate Fund Fund Tax Levy Collections Collected to Tax Levy

2010 0.594072$ 0.498544$ 0.095528$ 5,729,597$ 5,500,916$ 96.01% 98.63%

2011 0.594072$ 0.498544$ 0.095528$ 6,068,138$ 5,888,654$ 97.04% 97.66%

2012 0.653377$ 0.571038$ 0.082339$ 6,411,247$ 6,229,600$ 97.17% 99.36%

2013 0.653377$ 0.571038$ 0.082339$ 6,418,152$ 6,270,222$ 97.70% 99.30%

2014 0.653377$ 0.581121$ 0.072256$ 6,691,394$ 6,548,938$ 97.87% 99.19%

2015 0.653377$ 0.569980$ 0.083397$ 7,055,238$ 6,927,406$ 98.19% 99.05%

2016 0.653377$ 0.575883$ 0.077494$ 7,501,037$ 7,381,511$ 98.41% 98.41%

2017 0.643377$ 0.578521$ 0.064856$ 8,309,353$ 8,164,388$ 98.26% 99.40%

2018 0.633377$ 0.530791$ 0.102586$ 8,688,391$ 8,542,962$ 98.33% 99.15%

2019 0.633377$ 0.521438$ 0.111939$ 9,520,568$ 9,349,717$ 98.21% 98.21%

Source: Grayson County Tax Assessor & Collector Recap & Standings Report

City of Denison, Texas TAX RATE LEVY AND COLLECTION HISTORY


175

Tax Supported Debt Service Requirements, Fiscal Year Ending September 30, 2019 1,333,788$

Tax Supported Other Fees & Payments 9,000$

Interest and Sinking Fund, September 30, 2019 628,365$

Budgeted Interest and Sinking Fund Tax Levy 1,342,788$

Budgeted Interest for Interest and Sinking Fund 20,000$

1,991,153$

Estimated Balance, September 30, 2020 648,365$



INTEREST AND SINKING FUND BUDGET PROJECTION

176

Equivalent

% of of

Fiscal Economic City of Total Ad Valorem Ad Valorem Per

Year Development Denison Collected Tax Levy Tax Rate Capita

2010 1,275,187$ 3,825,561$ 5,100,748$ 89.02% 0.528870$ 210$

2011 1,227,685$ 3,746,744$ 4,974,429$ 81.98% 0.486998$ 211$

2012 1,345,954$ 4,037,861$ 5,383,815$ 83.97% 0.548670$ 236$

2013 1,409,657$ 4,228,912$ 5,638,569$ 87.85% 0.574014$ 249$

2014 1,383,599$ 4,154,796$ 5,538,395$ 82.77% 0.540793$ 244$

2015 1,483,577$ 4,450,730$ 5,934,307$ 84.11% 0.549569$ 259$

2016 1,561,591$ 4,684,773$ 6,246,364$ 83.27% 0.483293$ 266$

2017 1,719,068$ 5,157,204$ 6,876,272$ 82.75% 0.532416$ 291$

2018 1,860,856$ 5,582,867$ 7,443,723$ 85.67% 0.542642$ 305$

2019 1,903,653$ 5,710,960$ 7,614,613$ 79.98% 0.506579$ 303$

City of Denison, Texas MUNICIPAL SALES TAX HISTORY


177

Cash on Hand 0.01% 2,830$

Savings and Checking Accounts 25.31% 5,741,584$

Money Market Accounts 1.90% 430,582$

Governmental Pool Accounts 68.82% 15,614,562$

Certificates of Deposit 3.96% 898,000$

100.00% 22,687,558$

Type of Investment



CASH AND INVESTMENTS FOR PRIMARY GOVERNMENT

178


Staff Report

Agenda Item

Receive a report, hold a discussion, and take action on an amendment to the FY2020 budget for

Denison Development Alliance.

Staff Contact

Tony Kaai, President, Denison Development Alliance

[email protected]

903-464-0883

Summary

City Council approved DDA’s FY2020 budget on September 3, 2019.

The proposed budget amendment increases estimated program expenses for Workforce

Development from $44,900 to $119,900, an addition of $75,000.

In cooperation with Denison ISD and Workforce Solutions Texoma, DDA will provide

matching funds to upgrade Denison ISD’s manufacturing and health occupation equipment to

the current industry standards.


Staff recommends approval of the proposed FY2020 budget amendment for Denison Development

Alliance.

Recommended Motion

“I move to approve the proposed budget amendment for Denison Development Alliance.”


The Denison City Council approved the FY2020 budget for Denison Development Alliance on

September 3, 2019. The approved budget includes $44,900 in estimated program expenses for

workforce development. The proposed budget amendment increases estimated program expenses for

workforce development to $119,900, an addition of $75,000. In cooperation with Denison ISD and

Workforce Solutions Texoma, DDA will provide matching funds to upgrade Denison ISD’s

manufacturing and health occupation equipment to the current industry standards.


The proposed budget amendment increases DDA’s budget by $75,000 to provide matching funds for

workforce development expenses.


City Council approved DDA’s budget on September 3, 2019.

DDA’s Board of Directors approved the proposed budget amendment on February 25, 2020.

Alternatives

City Council may disapprove or table the proposed budget amendment.

Approved by the Denison Development Alliance on August 27, 2019.Approved by the Denison City Council on September 3, 2019.

Amended by the Denison Development Alliance on February 25, 2020.

Estimated Revenues 2019/20204A Sales Tax Revenue 2,084,668$ Interest Income 38,197$ Lease Income (Florestone) 406,214$ Property Tax Income (Florestone) 90,005$

Total Estimated Revenues 2,619,084$

Estimated Funds Available (Carried Over) 2,188,331$

Estimated Administrative ExpensesAnnual Meeting (Summit) 7,500$ Audit/Accounting 17,265$ Automotive Allowance 11,400$ Bank Fees 50$ Computer Expenses 9,070$ Consultant Fees 75,000$ Copier/Maintenance 1,067$ Deferred Compensation Trust 25,000$ Employee Insurance 37,900$ Equipment Rental/Maintenance/Purchase 1,200$ Janitorial/Office Maintenance 1,900$ Legal Services 15,000$ Liability Insurance 8,053$ Meeting Refreshments 1,700$ Miscellaneous Expenses 1,500$ Office Furnishings 2,500$ Office Lease 15,962$ Office Supplies 5,500$ Payroll Taxes/SS 19,715$ Payroll Taxes/Medicare 4,611$ Payroll Taxes/SUTA 300$ Postage 2,200$ Professional Development 13,000$ Retirement 42,502$ Salaries 317,985$ Subscriptions/Dues 3,290$ Telephone/Communications 9,700$ Travel 3,000$ Utilities 6,900$ Workers Compensation 850$

Total Administrative Expenses 661,619$

2019/2020 BudgetDRAFT

Approved by the Denison Development Alliance on August 27, 2019.Approved by the Denison City Council on September 3, 2019.

Amended by the Denison Development Alliance on February 25, 2020.

Estimated Program Expenses 2019/2020Briefing Center Equipment/Presentations 1,000$ GIS Webtech - Retail Market Analysis 7,500$ Sites USA, Inc. 3,600$ Workforce Development 119,900$

Total Estimated Program Expenses 132,000$

Estimated Property Management ExpensesBusiness/Industrial Park Maintenance 3,000$ Florestone Building (Note) 450,050$ Florestone Insurance (Liability) 395$ Florestone Building Taxes (Property) 90,005$

Total Estimated Property Management Expenses 543,450$

Estimated One-Time Expenses/Obligated IncentivesBusiness Park Planning/Engineering 80,000$ Gas Line Extension (75/91) 79,543$ Incentives - ACS Manufacturing 60,000$ Incentives - Swagit Productions, LLC 20,000$ Incentives - Façade - Improvement Grants 225,000$ Incentives - Façade - Reclamation Grants 50,000$

Total Estimated One-Time Expenses/Obligated Incentives 514,543$

Total Estimated Marketing Expenses (Exhibit I) 192,600$

Total Estimated Expenses 2,044,212$

Estimated Funds Available for New Incentives 2,763,203$

DRAFT

The individual items presented are estimates for expenditures that will be incurred during the 2019/2020 fiscal year. These items arepresented only as a menu of potential costs anticipated. This outline is developed to be flexible, and a shift in expenditures within thisbudget can be made at the discretion of the President to meet the priority needs of the program that may arise during the year.

2019/2020 Budget

ANALYSIS OF BUDGET FOR FY 2019/2020

Estimated Revenues

4A Sales Tax – Projected income from sales tax for twelve (12) months.

Interest Income – The interest income (1.48%) has been calculated from the estimated $2,188,331 million in investments and the projected income of $2,580,887 less the projected expenses of $1,969,212.

Lease Income (Florestone) – The projected lease income from Florestone Products for twelve (12) months.

Property Tax Income (Florestone) – The projected annual property tax reimbursement from Florestone Products.

Estimated Funds Available (Carried Over) – Estimated funds available on October 1, 2019, from Checking, Money Market and Investment Accounts.

Estimated Administrative Expenses Annual Meeting/Summit – Cost of meals, equipment, supplies, refreshments, invitations, letters, online registration, advertising, etc. for 250 people to attend the annual economic development summit.

Audit/Accounting – The annual audit is $9,800, and the monthly bookkeeping services are $5,700 annually. This also includes the annual cost of annual QB software subscriptions/updates of $715, QB Payroll Tax services of $350, the Audit Inquiry Letter from our attorney for $200, and $500 for accounting supplies (checks, check envelopes, signature stamps, etc).

Automotive Allowance – The amount provided to the President and VP of Business Development.

Bank Fees – Fees charged on bank accounts for wire transfers, stop check fees, etc.

Computer Expenses – The projected cost to cover license upgrades to Windows 10 and Microsoft Office 2016, technical support, replacement and maintenance for hardware and software systems (on an annual basis). Also includes the cost to replace the Administrative Assistant’s computer and monitor.

Consultant Fees – To cover the costs of environmental firms, engineers, surveyors, appraisers, or other professional services needed to support potential property acquisitions (JM, WJ Smith) and/or property development.

Copier/Maintenance – The cost for the annual maintenance contract, toner, and staples for the copier.

Analysis of Budget for FY 2019/2020 Page 2 of 4

The individual items presented are estimates for expenditures that will be incurred during the 2019/2020 fiscal year. These items are presented only as a menu of potential costs anticipated. This outline is developed to be flexible, and a shift in expenditures within this budget can be made at the discretion of the President to meet the priority needs of the program that may arise during the year.

Deferred Compensation Trust – Deferred Compensation Plan for retention of the President.

Employee Insurance – The projected annual health insurance premiums for the VP of Operations, VP of Business Development, and the President. Also includes the cost of $592 for the President’s disability insurance.

Equipment Rental/Maintenance/Purchase – Cost of monthly fee for Stamps.com, postage labels and documents. Also includes the cost of various small equipment needed (shredders, scales, etc.).

Janitorial/Office Maintenance – Cost to clean offices, provide pest control, window cleaning, and minor repairs for plumbing, HVAC, etc.

Legal Services – Projected cost of legal services for the potential purchase of property, etc (JM, WJ Smith).

Liability Insurance – Liability insurance for office space, Industrial Park, North Pointe Business Park and the cost of a dishonesty bond for employees.

Meeting Refreshments – Coffee, sodas, snacks, etc. for guests and Board/committee meetings.

Miscellaneous Expenses – To cover any unexpected expenses that may occur during the course of the year, and will not fit in any of the budget categories.

Office Furnishings – Cost of new or replacement office furnishings, decorations, office painting and minor repairs.

Office Lease – The cost to lease 2,083 square feet of office space per our lease agreement.

Office Supplies – Copier paper, laser cartridges, and all other general supplies needed.

Payroll Taxes/Social Security/Medicare/SUTA – Cost as calculated by accountants.

Postage – Projected postage/shipping expenditures for mailing reports/questionnaires, general correspondence, promotional materials, account payables/receivables, and invitations to locally sponsored events.

Professional Development – The cost for membership fees for IEDC, TEDC, and Rotary. This cost also includes the expenses for attending the IEDC, or TEDC meetings/conferences, other training expenses (e.g. computer classes) and tuition reimbursement for college courses.

Retirement – A 14% match for the President, VP of Operations, and VP of Business Development.

Salaries – Full time staff salaries were calculated to reflect a 3% increase in the President’s salary of $147,537.29, the Vice President of Business Development’s salary of $97,870.31, and the Vice President of Operations’ salary of $58,176.90. A part-time administrative assistant is included with a salary of $14,400.00.

Subscriptions/Dues – Included but not limited to: Business Week…………………………………………………………………………………………………………………….. $90.00 Dallas Business Journal……………………………………………………………………………………………………… $120.00 Greater Texoma Association of Realtors……………………………………………………………………………. $245.00 LogMeIn Pro…………………………………………………………………………………………………………………… $1,560.00 Hightail……………………………………………………………………………………………………………………………… $300.00 North Texas Commercial Association of Realtors………………………………………………………………. $225.00 Sam’s Club…………………………………………………………………………………………………………………………. $100.00



Texas Association of Business……………………………………………………………………………………………. $350.00 Zip Form……………………………………………………………………………………………………………………………. $300.00 TOTAL $3,290.00

Telephone /Communications – The cost of three business phone lines, staff cell phones, one data package (iPad), DSL/Cable modem service, long distance, and phone system equipment and tech support/labor.

Travel – Covers all travel by staff for which mileage reimbursements are made (i.e., local travel by the VP of Operations and the Administrative Assistant and out of town travel for the President and VP of Business Development).

Utilities – Annual cost of water, sewer, trash, electricity, and gas.

Workers Compensation – Annual cost of workers compensation. Estimated Program Expenses

Briefing Center/Presentation Equipment – Cost of any specialized equipment necessary to update conference room (and portable equipment) for public meetings/presentations.

GIS Webtech (Retail Market Data) – The cost of Denison’s website based market information featuring property postings and demographic information on the trade area.

Sites USA, Inc. – Membership to online source for U.S. demographic reports, maps, charts, and retail data (current demographics and 5 year projections of nationwide demographic data, etc).

Workforce Development – DDA will:

Provide ten (10) scholarships for teachers who will intern at local industries…………………..….…..…………$5,000

Provide five (5) scholarships for Denison ISD students who are in the Advanced Manufacturing Dual Credit Program at Denison ISD and Grayson College……………….………………………………………………………..…………….$12,500

Partner with SEDCO and Grayson College in maintaining a staff person, located at Grayson College, to implement the strategic plan to develop a pipeline of middle skilled workers.…….……………….……..…. $5,000

Provide books/equipment for Denison ISD students, as needed, who are enrolled in Grayson College’s dual credit courses in advanced manufacturing and healthcare….……………………………………………………….$5,000

Cost share with Workforce Solutions Texoma and SEDCO to have a subscription to Chmura which provides current workforce data for prospects….………………………………………………………………………………..…$1,400

Partner with SEDCO and Workforce Solutions Texoma to produce two annual career fairs………………$6,000 Partner with local industries, SEDCO and Workforce Solutions Texoma in hosting quarterly luncheons for

the Advanced Manufacturing Program students and their mentors.….…………………………………………..…..$3,000 Jon Shallert Boot Camp - Cost sharing with City of Denison Main Street to send 6 Downtown Denison

retail/restaurant stakeholders, and a community representative, to attend the Community Reinvention Program – a Boot Camp for becoming a destination business—helps business owners determine what to do to stand out from the rest in their field.….……………………………………………………………………………………..…..$7,000

AMP/Health Matching Grant - DDA in cooperation with Denison ISD and Workforce Solutions Texoma will provide matching funds to upgrade Denison ISD’s manufacturing and health occupation equipment to the current standards of today’s industries…………………………………………………….………..………...............$75,000



Estimated Property Management Expenses Business/Industrial Park Maintenance – Cost for mowing/cleaning of the Industrial/Business Parks.

Florestone Building (Note) – The projected annual cost for principal and interest on the Florestone building.

Florestone Insurance (Liability) – Estimated annual cost for the building’s liability coverage.

Florestone Building Taxes (Property) – Estimated property taxes (to be reimbursed by Florestone).

Estimated One-time Expenses Business Park Planning/Engineering – The remaining items needed to prepare the North Pointe Business Park (160 acres) for development: Geotech Report $20,000; Archeological Report $15,000; Park design guidelines $15,000; Utility easement acquisition $30,000.

Gas Line Extension – Cost of the annual note payment for the installation of the 8” line from old Highway 75 along the right of way on new Highway 75 to Highway 91, then south to service the Industrial Park and Denison High School.

Incentives (Obligated) – The obligated amount of funds to be paid for incentives during the 2019/2020 budget year for ACS Manufacturing and Swagit Productions, LLC.

Façade Improvement Grants – The matching (50/50) grant program to improve the exterior (façade) appearance of buildings in the Downtown, Downtown Perimeter, and targeted Gateway areas.

Façade Reclamation Grants – Grant program to encourage the removal of façades covered with metal slipcovers on Main Street.

Estimated Funds Available for New Incentives – The projected amount of funds to be available for NEW incentives on October 1, 2019.


Staff Report

Agenda Item

Receive a report, hold a discussion and inform council of the FY2021 budget and tax rate adoption

schedule.

Staff Contact

Renee’ Waggoner, Director of Finance and Administrative Services

[email protected]

903-465-2720 EXT 2444

Summary

Staff began budget process in February

Chief Appraiser sends Preliminary Values to City in April

Budget Presentations and updates to Council April – September

City Manager begins staff review in June

Budget Workshop held in June

Chief Appraiser sends Certified Values to City in July

Proposed tax rate published; notices of hearings and hearings held in August & September

City Manager files proposed budget with City Clerk on August 7

Consider and act on adoption of FY2021 budget and tax rate for 2020


No staff recommendation-update only.

Recommended Motion

No staff recommendation-update only.


Staff began the budget process in February this year and will continue to work on budget up until the

adoption date set in September. Staff will engage Council at every step between now and the adoption.

The Chief Appraiser will provide Preliminary Values for property tax to the City in April. The City

Manager begins staff review in June, sitting down with staff, reviewing current budget and reviewing

requests for the next budget year. A Council/Staff budget workshop is scheduled for June 26, 2020.

The Chief Appraiser will provide Certified Values for property tax to the City no later than July 25,

2020. During the months of August and September, the proposed tax rate will be published and

notices of hearings will be posted and hearings will be held. On August 7, 2020 the City Manager will

file the proposed budget with the City Clerk. Changes can be made to the budget up until the day of

adoption. Council will consider and act on adoption of the FY2021 budget and 2020 tax rate on

September 8, 2020.


None.


None.

Alternatives

None. This is a presentation only.

Budget TimelineMARCH 16, 2020 COUNCIL MEETING

FY2021 Budget TimelineCouncil Budget & Tax Rate Adoption Schedule

•April Chief Appraiser to provide Preliminary Values for property tax to City

•April - September Budget Presentations/Updates to Council at Council Meetings

•June 1 City Manager begins Staff Review

•June 26 Council Budget Workshop

•July 25 Chief Appraiser to provide Certified Values for property tax to City

•August & September Proposed tax rate published; notices of hearings and budget updates

•August 7 City Manager files proposed budget with City Clerk; City Clerk posts on website

•September 8 Consider and act on adoption of FY2021 Budget and 2020 Tax Rate

city of denison city council meeting agenda€¦ · city council meeting agenda monday, march 16,...

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