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2019_04.16 CC Packet KENNEDALE CITY COUNCIL AGENDA REGULAR MEETING | April 16, 2019 CITY HALL COUNCIL CHAMBERS, 405 MUNICIPAL DRIVE WORK SESSION at 6:30 PM | REGULAR SESSION at 7:00 PM I. CALL TO ORDER NOTE: Pursuant to Texas Government Code §551.071, the City Council reserves the right to adjourn into Executive Session at any time during the Work Session or the Regular Session to discuss posted Executive Session items or to seek legal advice from the City Attorney on any item posted on the agenda. II. WORK SESSION A. Discussion of items on the Regular Agenda III. REGULAR SESSION IV. ROLL CALL V. INVOCATION VI. UNITED STATES PLEDGE AND TEXAS PLEDGE “Honor the Texas Flag; I Pledge Allegiance to Thee, Texas, One State under God; One and Indivisible." VII. VISITOR/CITIZENS FORUM At this time, any person may address the City Council, provided that a ‘Speaker’s Re quest Form’ is submitted before the meeting begins. Speakers are allotted three (3) minutes, must limit comments to the subject indicated on the submitted form, and should address the Council as a whole, rather than individual Councilmembers or staff. No formal action or discussion may be taken at this time. Those wishing to speak about an agenda item should indicate as much on the “Speaker’s Request Form” and will be called upon to speak when the Council considers that item. VIII. REPORTS/ANNOUNCEMENTS In addition to any items listed below, the Mayor and Councilmembers may give or receive reports regarding items of community interest, including, but not limited to, recognition of officials, citizens, staff, or departments; information regarding holiday schedules; and upcoming or attended events. A. Updates from the City Council B. Updates from the City Manager C. Updates from the Mayor • Proclaiming April 2019 as Child Abuse Prevention Month and recognizing Alliance for Children for their dedication to protecting the children of Tarrant County IX. MONITORING INFORMATION A. Monthly Financials for March 2019 B. KEDC Financial Report for February 2019 C. Schedule of Investment Activity for quarter ending March 31, 2019 X. INCIDENTAL ITEMS XI. REQUIRED APPROVAL ITEMS (CONSENT) Consent items are matters that have appeared on previous agendas, require little or no deliberation, or are considered routine. If discussion is desired, any item may be removed from Consent and considered separately. A. Consider approval of the minutes from the March 19, 2019 Regular Meeting B. Receive the independent auditor's report (Comprehensive Annual Financial Report (CAFR)) for the fiscal year ended September 30, 2018 C. Consider authorizing Fire Chief James Brown to enter into a Clinical Affiliation Agreement with the School of EMS D. Consider approval Resolution 548, denying the Distribution Cost Recover Factor (“DCRF”) application by Oncor Electric Delivery LLC XII. DECISION ITEMS A. Consider approval of Ordinance 659, amending the FY2018-19 Budget XIII. EXECUTIVE SESSION Pursuant to Texas Government Code §551.071, the City Council may meet in Closed Session at any time during this meeting for the purposes of consultation with the City Attorney pertaining to any matter in which the duty of the City Attorney under the Texas Disciplinary Rules of Professional Conduct may conflict with the Open Meetings Act, including discussion of any item posted on this agenda and/or legal issues regarding the Open Meetings Act. A. Discussion with the City Attorney regarding a damage claim submitted by Erin L. Jackson (1037 Swiney Hiett Road) XIV. RECONVENE INTO OPEN SESSION, AND TAKE ACTION NECESSARY PURSUANT TO EXECUTIVE SESSION, IF NEEDED XV. ADJOURNMENT In compliance with the Americans with Disabilities Act (ADA), the City will provide for reasonable accommodations for persons attending meetings. This facility is wheelchair accessible and accessible parking spaces are available. Requests for sign interpreter services must be made forty-eight (48) hours prior to the meeting. Please contact the City Secretary at 817-985-2104 or (TTY) 1-800-735-2989. CERTIFICATION I DO HEREBY CERTIFY THAT A COPY OF THE APRIL 16, 2019 KENNEDALE CITY COUNCIL AGENDA WAS POSTED ON THE BULLETIN BOARD NEXT TO THE MAIN ENTRANCE OF CITY HALL (405 MUNICIPAL DRIVE; KENNEDALE, TX 76060), IN A PLACE CONVENIENT AND READILY ACCESSIBLE TO THE GENERAL PUBLIC AT ALL TIMES; AND THAT SAID AGENDA WAS POSTED AT LEAST SEVENTY-TWO (72) HOURS PRECEDING THE SCHEDULED TIME OF SAID MEETING, IN ACCORDANCE WITH CHAPTER 551 OF THE TEXAS GOVERNMENT CODE. _____________________________ LESLIE E. GALLOWAY, CITY SECRETARY STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL Date: April 16, 2019 Agenda Item No: WORK SESSION - A. I. Subject: Discussion of items on the Regular Agenda II. Originated by: III. Summary: At this time, the Council may choose to discuss any item on the agenda. IV. Fiscal Impact Summary: V. Legal Impact: VI. Recommendation: VII. Alternative Actions: VIII. Attachments: STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL Date: April 16, 2019 Agenda Item No: REPORTS/ANNOUNCEMENTS - A. I. Subject: Updates from the City Council II. Originated by: III. Summary: Updates and information from each of the Councilmembers, if any. IV. Fiscal Impact Summary: V. Legal Impact: VI. Recommendation: VII. Alternative Actions: VIII. Attachments: STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL Date: April 16, 2019 Agenda Item No: REPORTS/ANNOUNCEMENTS - B. I. Subject: Updates from the City Manager II. Originated by: III. Summary: Updates and information from City Manager George Campbell, if any. IV. Fiscal Impact Summary: V. Legal Impact: VI. Recommendation: VII. Alternative Actions: VIII. Attachments: STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL Date: April 16, 2019 Agenda Item No: REPORTS/ANNOUNCEMENTS - C. I. Subject: Updates from the Mayor • Proclaiming April 2019 as Child Abuse Prevention Month and recognizing Alliance for Children for their dedication to protecting the children of Tarrant County II. Originated by: III. Summary: Updates and information from Mayor Brian Johnson, if any. IV. Fiscal Impact Summary: V. Legal Impact: VI. Recommendation: VII. Alternative Actions: VIII. Attachments: 1.2019_04.16 Child Abuse Prevention Month Proclamation 2019_04.16 Child Abuse Prevention Month Proclamation.pdf Child Abuse Prevention Month STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL Date: April 16, 2019 Agenda Item No: MONITORING INFORMATION - A. I. Subject: Monthly Financials for March 2019 II. Originated by: Brady Olsen, Finance Director III. Summary: Monthly financials and sales tax update as produced by the Finance Department. IV. Fiscal Impact Summary: V. Legal Impact: VI. Recommendation: VII. Alternative Actions: VIII. Attachments: 1.Sales Tax Update- March 2019 Sales Tax Update- March 2019.pdf 2.2019_03 Monthly Financials 2019_03 Monthly Financials.pdf Year October November December January February March April May June July August September Total FY2019 93,144$ 116,039$ 118,085$ 265,081$ 136,298$ 108,098$ -$ -$ -$ -$ -$ -$ 836,745$ FY2018 103,820$ 114,506$ 86,956$ 95,425$ 163,502$ 95,017$ 123,760$ 129,363$ 108,885$ 123,268$ 118,770$ 89,090$ 1,352,361$ FY2017 88,748$ 116,156$ 81,855$ 88,956$ 105,794$ 78,644$ 87,130$ 100,121$ 80,241$ 100,943$ 49,590$ 86,549$ 1,064,725$ FY2016 93,137$ 119,137$ 97,985$ 75,878$ 116,006$ 87,589$ 79,516$ 114,543$ 83,718$ 84,586$ 87,693$ 91,377$ 1,131,165$ FY2015 71,955$ 94,438$ 82,545$ 73,782$ 107,571$ 72,312$ 81,193$ 119,350$ 128,463$ 165,756$ 146,297$ 177,697$ 1,321,359$ FY2014 65,971$ 89,600$ 94,982$ 67,373$ 97,781$ 69,685$ 79,236$ 93,957$ 77,496$ 71,927$ 86,597$ 67,978$ 962,584$ FY2013 100,850$ 93,890$ 70,338$ 60,406$ 90,009$ 62,374$ 60,955$ 96,061$ 63,409$ 67,304$ 83,919$ 78,075$ 927,591$ *Net payment after correcting an audit error.-$ Industry Amount % Change Adjusted ChangYTD FYTD General Services $22,881.01 8.29%3.87%$80,517.50 $151,544.75 Retail $22,135.41 52.80%59.41%$73,559.97 $141,978.09 Manufacturing $19,803.26 22.18%-81.38%$69,455.10 $149,726.36 Wholesale $17,354.36 16.61%53.50%$48,705.96 $103,665.62 Professional Services $15,709.61 -19.41%-3.53%$50,911.41 $101,544.50 Food $8,611.20 1.23%3.98%$26,554.07 $52,967.04 Agricultural $1,387.95 918.21%-1.82%$168,395.00 $145,172.91 Miscellaneous $228.68 14.60%-24.23%$539.03 $1,388.13 Accommodation $0.00 0.00%0.00%$0.00 $0.00 Sales Tax By Month 0 50,000 100,000 150,000 200,000 250,000 300,000 October November December January February March April May June July August September Sales Tax vs Expectation FY 2019 Five Year Average CITY OF KENNEDALE ANNUAL PROGRAM OF SERVICES March 2019 "YOU'RE HERE. YOUR HOME." FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY ACTUAL % OF CY BUDGET BUDGET REVENUES YTD ACTUAL ADOPTED MONTH YTD EARNED EARNED REMAINING GENERAL FUND 4,820,161$ 6,751,815$ 6,406,759$ 277,099$ 4,967,735$ 71.4%77.5%1,439,024$ OTHER GENERAL FUNDS 355,522$ 1,035,991$ 941,983$ 81,260$ 328,959$ 34.3%34.9%613,024$ GENERAL FUND 5,175,683$ 7,787,806$ 7,348,742$ 358,359$ 5,296,694$ 66.5%72.1%2,052,048$ -$ GENERAL DEBT SERVICE FUND 1,293,990$ 1,572,159$ 1,518,995$ 16,751$ 1,303,354$ 82.3%85.8%215,641$ -$ WATER/SEWER FUND 2,061,660$ 4,804,352$ 4,010,901$ 287,717$ 1,842,809$ 42.9%45.9%2,168,092$ STORMWATER UTILITY FUND 131,102$ 256,278$ 254,950$ 22,268$ 134,019$ 51.2%52.6%120,931$ WATER IMPACT FUND 92,923$ 165,170$ 120,450$ 281$ 16,769$ 56.3%13.9%103,681$ SEWER IMPACT FUND 49,799$ 93,162$ 32,664$ 249$ 9,825$ 53.5%30.1%22,839$ WATER/SEWER FUND 2,335,484$ 5,318,962$ 4,418,965$ 310,515$ 2,003,422$ 43.9%45.3%2,415,543$ -$ EDC4B FUND 562,766$ 991,633$ 629,752$ 59,231$ 347,600$ 56.8%55.2%282,152$ -$ CAPITAL FUND 89,223$ 186,462$ 172,535$ 8,695$ 783,446$ 47.9%454.1%(610,911)$ -$ SPECIAL REVENUE FUND 1,750$ 43,873$ 127,497$ 33$ 1,863$ 4.0%1.5%125,634$ TOTAL REVENUES 9,458,896$ 15,900,895$ 14,216,486$ 753,584$ 9,736,379$ 59.5%68.5%4,480,107$ FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY BUDGET % OF CY BUDGET BUDGET EXPENDITURES YTD ACTUAL ADOPTED MONTH YTD EXPENSED EXPENSED REMAINING GENERAL FUND 3,043,375$ 6,340,017$ 7,028,284$ 709,537$ 3,271,488$ 48.0%46.5%3,756,796$ OTHER GENERAL FUND 492,960$ 1,063,510$ 1,197,369$ 86,236$ 418,334$ 46.4%34.9%779,035$ GENERAL FUND 3,536,335$ 7,403,527$ 8,225,653$ 795,773$ 3,689,822$ 47.8%44.9%4,535,831$ GENERAL DEBT SERVICE FUND 1,167,910$ 1,420,004$ 1,511,744$ 400$ 1,259,184$ 82.2%83.3%252,560$ -$ WATER/SEWER FUND 1,990,754$ 4,370,392$ 4,659,521$ 285,795$ 1,767,633$ 45.6%37.9%2,891,888$ STORMWATER UTILITY FUND 72,802$ 188,545$ 139,764$ $ 73,147$ 38.6% WATER IMPACT FUND $ -153,573$ 152,525$ -$ $ - SEWER IMPACT FUND -$ 60,000$ 60,000$ -$ $ - WATER/SEWER FUND 2,063,556$ 4,772,510$ 5,011,810$ 285,795$ 1,840,780$ 43.2%36.7%3,171,030$ -$ EDC4B FUND 515,169$ 1,013,841$ 539,912$ 31,522$ 177,715$ 50.8%32.9%362,197$ -$ CAPITAL FUND 7,293$ 186,536$ 130,170$ 13,723$ 25,955$ 3.9%19.9%104,215$ -$ SPECIAL REVENUE FUND 9,971$ 26,919$ 11,767$ -$ 1,650$ 37.0%14.0%10,117$ 0 TOTAL EXPENDITURES 7,300,234$ 14,823,337$ 15,431,056$ 1,127,213$ 6,995,106$ 49.2%45.3%8,435,950$ REVENUE SUMMARY BY FUND EXPENDITURE SUMMARY BY FUND CITY OF KENNEDALE ANNUAL PROGRAM OF SERVICES March 2019 "YOU'RE HERE. YOUR HOME." FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY ACTUAL % OF CY BUDGET BUDGET GENERAL FUND YTD ACTUAL ADOPTED MONTH YTD EXPENSED EXPENSED REMAINING CITY MANAGER 170,155$ 363,210$ 365,464$ 40,211$ 179,486$ 46.8%49.1%185,978$ MAYOR/CITY COUNCIL 72,932$ 158,561$ 127,323$ 16,883$ 89,471$ 46.0%70.3%37,852$ CITY SECRETARY 67,361$ 130,433$ 164,073$ 11,244$ 81,744$ 51.6%49.8%82,329$ MUNICIPAL COURT 52,238$ 65,492$ 108,148$ 8,607$ 46,502$ 79.8%43.0%61,646$ HUMAN RESOURCES 74,817$ 165,966$ 104,909$ 11,568$ 44,053$ 45.1%42.0%60,856$ FINANCE 184,369$ 341,293$ 358,365$ 95,509$ 204,791$ 54.0%57.1%153,574$ POLICE 1,095,030$ 2,257,421$ 2,686,196$ 219,613$ 1,187,143$ 48.5%44.2%1,499,053$ FIRE 845,877$ 1,744,007$ 1,907,680$ 235,660$ 821,304$ 48.5%43.1%1,086,376$ COMMUNITY DEVELOPMENT 115,239$ 338,010$ 372,090$ 37,936$ 178,315$ 34.1%47.9%193,775$ SENIOR CITIZEN CENTER 23,774$ 49,877$ 54,028$ 4,289$ 22,227$ 47.7%41.1%31,801$ LIBRARY 126,485$ 311,250$ 268,259$ 27,295$ 169,032$ 40.6%63.0%99,227$ NONDEPARTMENTAL 215,097$ 414,496$ 511,749$ 721$ 247,420$ 51.9%48.3%264,329$ TOTAL EXPENDITURES 3,043,374$ 6,340,016$ 7,028,284$ 709,536$ 3,271,488$ 48.0%46.5%3,756,796$ FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY BUDGET % OF CY BUDGET BUDGET WATER/SEWER FUND YTD ACTUAL ADOPTED MONTH YTD EXPENSED EXPENSED REMAINING UTILITY BILLING 436,845$ 1,412,952$ 1,293,973$ 126,371$ 555,263$ 30.9%42.9%738,710$ WATER OPERATIONS 753,452$ 1,324,784$ 1,576,197$ 90,868$ 431,009$ 56.9%27.3%1,145,188$ DEBT 464,750$ 175,327$ 509,680$ $ 470,199$ 265.1% W&S CAPITAL 2,765$ 15,519$ 654,796$ 37,330$ 76,830$ 11.7%577,966$ NONDEPARTMENTAL 332,942$ 1,441,811$ 624,875$ 31,225$ 234,333$ 23.1%37.5%390,542$ TOTAL EXPENDITURES 1,990,754$ 4,370,393$ 4,659,521$ 285,794$ 1,767,634$ 45.6%37.9%2,891,887$ FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY BUDGET % OF CY BUDGET BUDGET STREET IMPROVEMENT FUND YTD ACTUAL ADOPTED MONTH YTD EXPENSED EXPENSED REMAINING STREETS 282,962$ 630,950$ 740,910$ 69,296$ 291,211$ 44.8%39.3%449,699$ PARKS MAINTENANCE 31,334$ 80,379$ 125,920$ 5,314$ 35,992$ 39.0%28.6%89,928$ CAPITAL $ -60,555$ 79,058$ $ $ - TOTAL EXPENDITURES 314,296$ 771,884$ 945,888$ 74,610$ 327,203$ 40.7%34.6%618,685$ FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY BUDGET % OF CY BUDGET BUDGET EDC4B FUNDS YTD ACTUAL ADOPTED MONTH YTD EXPENSED EXPENSED REMAINING ADMINISTRATION 58,435$ 142,581$ 168,360$ 16,958$ 72,877$ 41.0% DEBT SERVICE 89,870$ 325,006$ 320,432$ 10,017$ 55,236$ 27.7% TOWN SHOPPING CENTER 277,603$ 278,194$ 51,120$ 4,547$ 43,864$ 99.8% TOWNCENTER REDEVELOPMENT 89,262$ 237,866$ $ - $ 5,738$ TOTAL EXPENDITURES 515,170$ 983,647$ 539,912$ 31,522$ 177,715$ 52.4%32.9%362,197$ EXPENDITURE SUMMARY BY DEPARTMENT STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL Date: April 16, 2019 Agenda Item No: MONITORING INFORMATION - B. I. Subject: KEDC Financial Report for February 2019 II. Originated by: Brady Olsen, Finance Director III. Summary: Reports from the previous EDC meeting are attached for your reference. IV. Fiscal Impact Summary: V. Legal Impact: VI. Recommendation: VII. Alternative Actions: VIII. Attachments: 1.2019_02 Monthly Financials - EDC 2019_02 Monthly Financials - EDC.pdf 2.Sales Tax Update-EDC Feb Sales Tax Update-EDC Feb.pdf 1 CITY OF KENNEDALE ANNUAL PROGRAM OF SERVICES February 2019 "YOU'RE HERE. YOUR HOME." Budget Amendment Monthly Information 1. $45,433 Sales Tax continues strong growth; mostly in manufacturing and wholesale 2. Still in year end closing process. Adjustments made in September that may not match this month's report. Should receive audit report via email soon. 3. Per Council direction, a separate bank account has been created. Working to finalize accounting before transferring funds. 4. Fund has recovered to a respectable cash position 5. EDC director engaged in long-term planning, including relationship with Chamber, hotel status, and Red's Roadhouse. Brady Olsen Finance Director ADDITIONAL INFORMATION FUND 15- OPERATING FUND (ALL BILLS AND REVENUE RECEIVED IN THIS FUND) FUND 19- CAPITAL BOND FUND (REMAINING CAPITAL MONEY) FUND 95- RESERVE FUND FOR DEBT REQUIREMENTS ECONOMIC DEVELOPMENT CORPORATION FINANCIALS SUMMARY Rental Fees, MMD Tax and Rental Insurance are reported on the Accrual Basis of Accounting, while all other revenues and expenditures are reported on the Cash Basis. This procedure has been in effect for several years, but can be changed should the Board wish. 2 CITY OF KENNEDALE ANNUAL PROGRAM OF SERVICES February 2019 "YOU'RE HERE. YOUR HOME." EDC CASH POSITION FY18-19 CATEGORY DESCRIPTION YTD FROM PREVIOUS MONTHS REPORT: BEGINNING CASH BALANCE - FUND 15 (Operating Cash)264,226$ BEGINNING TEXPOOL BALANCE - FUND 15 (Operating Investments)-$ BEGINNING TEXPOOL BALANCE - FUND 19 (Unspent bond proceeds)-$ BEGINNING CASH BALANCE - FUND 95 (Required reserves)122,808$ BEGINNING CASH BALANCE - TOTAL 387,034$ BEGINNING AVAILABLE CASH - TOTAL 264,226 TOTAL REVENUES MINUS EXPENDITURES FOR MONTH 14,960$ * ENDING CASH BALANCE - FUND 15 (Operating Cash)256,046$ ENDING TEXPOOL BALANCE - FUND 15 (Operating Investments)-$ ENDING TEXPOOL BALANCE - FUND 19 (Unspent bond proceeds)-$ ENDING CASH BALANCE - FUND 95 (Required reserves)122,808$ ENDING CASH BALANCE - TOTAL 378,854$ UNAVAILABLE CASH - EARMARKED RESERVES FOR LEVERAGE NOTE (Required reserves)122,808$ TOTAL UNAVAILABLE CASH 122,808$ AVAILABLE CASH 256,046$ *Due to prior period adjustments, beginning cash balance plus monthly income will not always be an exact match for ending cash balance 3 CITY OF KENNEDALE ANNUAL PROGRAM OF SERVICES February 2019 "YOU'RE HERE. YOUR HOME." COMBINED EDC4B FUNDS SUMMARY FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY ACTUAL % OF CY BUDGET BUDGET CATEGORY YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING BEGINNING FUND BALANCE 313,866$ 313,866$ 134,784$ 303,248$ AD VALOREM TAXES - - 35,000 - - #DIV/0!0.0%35,000 SALES/BEVERAGE TAXES 113,639 447,132 384,598 47,780 176,221 25.4%45.8%208,377 INVESTMENT EARNINGS 1,364 5,399 65 653 3,663 25.3%5635.6%(3,598) MISCELLANEOUS INCOME 23,502 66,420 24,120 7,214 13,893 35.4%57.6%10,227 SURPLUS SALES/RENTALS 379,507 487,579 185,969 18,814 94,592 77.8%50.9%91,377 TRANSFERS - - 29,719 - - 0.0%0.0%- TOTAL REVENUES 518,011$ 1,006,531$ 659,471$ 74,462$ 288,370$ 51.5%43.7%341,382$ SUPPLIES - - 2,100 - - #DIV/0!0.0%2,100 MAINTENANCE 258,455 297,315 29,920 3,451 23,739 86.9%79.3%6,181 SUNDRY 62,610 183,614 187,460 50,312 71,497 34.1%38.1%115,963 DEBT 51,260 172,418 165,607 - 45,219 29.7%27.3%120,388 TRANSFERS 33,794 152,588 184,544 - - 22.1%0.0%184,544 CAPITAL - 177,712 - 5,738 5,738 0.0%#DIV/0!(5,738) TOTAL EXPENDITURES 406,118$ 983,646$ 569,631$ 59,501$ 146,193$ 41.3%25.7%423,438$ REVENUES OVER EXPENDITURES 111,893$ 22,885$ 89,840$ 14,960$ 142,177$ ENDING FUND BALANCE 425,759$ 336,751$ 224,624$ 445,424$ FUND BALANCE AS % OF EXP 104.8%34.2%39.4%0.0%304.7% RESERVE ($115,000) REQUIREMENT)-$ -$ 115,000$ -$ -$ RESERVE SURPLUS/(SHORTFALL)425,759$ 336,751$ 109,624$ -$ 445,424$ 4 CITY OF KENNEDALE ANNUAL PROGRAM OF SERVICES February 2019 "YOU'RE HERE. YOUR HOME." 15: EDC4B FUND FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY ACTUAL % OF CY BUDGET BUDGET CATEGORY YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING BEGINNING FUND BALANCE 164,460$ 164,460$ (15,517)$ 152,017$ AD VALOREM TAXES - - 35,000 - - #DIV/0!0.0%35,000 SALES/BEVERAGE TAXES 113,639 447,132 384,598 47,780 176,221 25.4%45.8%208,377 INVESTMENT EARNINGS 818 3,574 65 444 2,645 22.9%4069.3%(2,580) MISCELLANEOUS INCOME 23,502 66,420 24,120 7,214 13,893 35.4%57.6%10,227 SURPLUS SALES/RENTALS 379,507 487,579 185,969 18,814 94,592 77.8%50.9%91,377 TOTAL REVENUES 517,465$ 1,004,706$ 629,752$ 74,252$ 287,351$ 51.5%45.6%342,401$ SUPPLIES - - 2,100 - - #DIV/0!0.0%2,100 MAINTENANCE 258,455 297,315 29,920 3,451 23,739 86.9%79.3%6,181 SUNDRY 62,610 183,614 187,460 50,312 71,497 34.1%38.1%115,963 DEBT 51,260 172,418 165,607 - 45,219 29.7%27.3%120,388 TRANSFERS 33,794 152,588 154,825 - - 22.1%0.0%154,825 CAPITAL - 177,712 - 5,738 5,738 0.0%#DIV/0!(5,738) TOTAL EXPENDITURES 406,118$ 983,646$ 539,912$ 59,501$ 146,193$ 41.3%27.1%393,719$ REVENUES OVER EXPENDITURES 111,347$ 21,060$ 89,840$ 14,751$ 141,159$ ENDING FUND BALANCE 275,807$ 152,017$ 74,323$ 293,175$ FUND BALANCE AS % OF EXP 67.9%15.5%13.8%0.0%200.5% RESERVE (NO REQUIREMENT)-$ -$ -$ -$ -$ RESERVE SURPLUS/(SHORTFALL)275,807$ 152,017$ 74,323$ -$ 293,175$ 5 CITY OF KENNEDALE ANNUAL PROGRAM OF SERVICES February 2019 "YOU'RE HERE. YOUR HOME." 15: EDC4B FUND FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY ACTUAL % OF CY BUDGET BUDGET ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING 4002-00-00 MMD TAX-CURRENT YEAR - - 35,000 - - #DIV/0!0.0%35,000 AD VALOREM TAXES -$ -$ 35,000$ -$ -$ #DIV/0!0.0%35,000$ 4081-00-00 SALES TAX 113,639 447,132 384,598 47,780 176,221 25.4%45.8%208,377 SALES/BEVERAGE TAXES 113,639$ 447,132$ 384,598$ 47,780$ 176,221$ 25.4%45.8%208,377$ 4401-00-00 INVESTMENT INCOME 818 3,574 65 444 2,645 22.9%4069.3%(2,580) INVESTMENT EARNINGS 818$ 3,574$ 65$ 444$ 2,645$ 22.9%4069.3%(2,580)$ 4409-00-00 MISCELLANEOUS INCOME 23,502 36,624 24,120 7,214 13,893 64.2%57.6%10,227 4415-00-00 INSURANCE REIMBURSEMENTS - 14,898 - - - 0.0%0.0%- MISCELLANEOUS INCOME 23,502$ 66,420$ 24,120$ 7,214$ 13,893$ 35.4%57.6%10,227$ 4805-00-00 RENTAL FEES-SHOPPING CENTER 30,328 105,856 185,223 18,814 94,592 28.6%51.1%90,631 4806-00-00 RENTAL INSURANCE - 2,350 746 - - 0.0%0.0%746 4902-00-00 PROCEEDS-DEBT/LOAN/LEASE 349,179 349,179 - - - 100.0%#DIV/0!- 4884-00-01 SALE OF ASSETS - 30,194 - - - 0.0%#DIV/0!- SURPLUS SALES/RENTALS 379,507$ 487,579$ 185,969$ 18,814$ 94,592$ 128.6%#DIV/0!91,377$ TOTAL REVENUES 517,465$ 1,004,706$ 629,752$ 74,252$ 287,351$ 51.5%45.6%342,401$ TOTAL REVENUES (EXCLUDING INTEREST/TRANSFERS)516,647$ 1,001,132$ 629,687$ 73,808$ 284,706$ 6 CITY OF KENNEDALE ANNUAL PROGRAM OF SERVICES February 2019 "YOU'RE HERE. YOUR HOME." 15: EDC4B FUND 01: ADMINISTRATION FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY ACTUAL % OF CY BUDGET BUDGET ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING 5240-01-00 PRINTED SUPPLIES - - 2,000 - - 0.0%2,000 5260-01-00 GENERAL OFFICE SUPPLIES - - 50 - - 0.0%0.0%50 5261-01-00 POSTAGE - - 50 - - 0.0%0.0%50 SUPPLIES -$ -$ 2,100$ -$ -$ 0.0%2,100$ 5501-01-00 ADVERTISING - 35 1,200 - - 0.0%0.0%1,200 5510-01-00 ASSOC DUES/PUBLICATIONS - 4,890 5,320 - - 0.0%0.0%5,320 5525-01-00 TRAINING/SEMINARS - - 250 - - #DIV/0!0.0%250 5565-01-00 LEGAL SERVICES 4,200 20,855 13,000 170 170 20.1%1.3%12,830 5567-01-00 AUDIT SERVICES - 2,000 4,250 - - 0.0%0.0%4,250 5570-01-00 SPECIAL SERVICES 5,752 13,774 250 43 103 41.8%41.1%147 5578-01-00 TRAVEL - - 100 - - 0.0%0.0%100 5595-01-00 ADMIN CHARGE-GENERAL FUND 34,020 81,647 117,890 49,121 49,121 41.7%41.7%68,769 5615-01-00 FUNCTIONAL GRANT 5,411 19,380 24,000 - 6,526 27.9%27.2%17,474 SUNDRY 49,383$ 142,581$ 166,260$ 49,333$ 55,919$ 34.6%33.6%110,341$ CAPITAL -$ -$ -$ -$ -$ 0.0%-$ TOTAL EXPENDITURES 49,383$ 142,581$ 168,360$ 49,333$ 55,919$ 34.6%33.2%112,441$ 7 CITY OF KENNEDALE ANNUAL PROGRAM OF SERVICES February 2019 "YOU'RE HERE. YOUR HOME." 15: EDC4B FUND 01: ADMINISTRATION 03: DEBT SERVICE FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY BUDGET % OF CY BUDGET BUDGET ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING 5643-01-03 2007 $1.2M TAX BOND-INTEREST 27,378 54,831 50,735 - 25,321 49.9%49.9%25,414 5644-01-03 2007 $1.2M TAX BOND-PRINCIPAL - 60,000 60,000 - - 0.0%0.0%60,000 5645-01-03 2011 $1.7M TX LEVERAGE-INT 6,984 17,926 12,834 - 6,774 39.0%52.8%6,060 5646-01-03 2011 $1.7M TX LEVERAGE-PRI 16,897 39,661 42,038 - 13,123 42.6%31.2%28,915 DEBT 51,260$ 172,418$ 165,607$ -$ 45,219$ 29.7%27.3%120,388$ 5702-01-03 TRANSFER OUT-DEBT SERVICE FUND 33,794 152,588 154,825 - - 22.1%0.0%154,825 TRANSFER 33,794$ 152,588$ 154,825$ -$ -$ 22.1%0.0%154,825$ TOTAL EXPENDITURES 85,053$ 325,006$ 320,432$ -$ 45,219$ 26.2%14.1%275,213$ 8 CITY OF KENNEDALE ANNUAL PROGRAM OF SERVICES February 2019 "YOU'RE HERE. YOUR HOME." 15: EDC4B FUND 02: TOWN SHOPPING CENTER FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY ACTUAL % OF CY BUDGET BUDGET ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING 5403-02-00 BUILDING MAINTENANCE 258,455 297,315 29,920 3,451 23,739 86.9%79.3%6,181 MAINTENANCE 258,455$ 297,315$ 29,920$ 3,451$ 23,739$ 86.9%79.3%6,181$ 5530-02-00 ELECTRIC SERVICES 2,246 8,002 6,700 479 1,939 28.1%28.9%4,761 5545-02-00 INSURANCE-PROPERTY 8,341 8,341 8,500 - 11,139 100.0%131.0%(2,639) 5570-02-00 SPECIAL SERVICES 2,641 24,691 6,000 500 2,500 10.7%41.7%3,500 SUNDRY 13,227$ 41,033$ 21,200$ 979$ 15,578$ 32.2%73.5%5,622$ TOTAL EXPENDITURES 271,682$ 338,348$ 51,120$ 4,430$ 39,317$ 80.3%76.9%11,803$ 9 CITY OF KENNEDALE ANNUAL PROGRAM OF SERVICES February 2019 "YOU'RE HERE. YOUR HOME." 15: EDC4B FUND 03: TOWN CENTER REDEVELOPMENT FY17-18 FY17-18 FY18-19 CURRENT FY18-19 - % OF PY ACTUAL % OF CY BUDGET BUDGET ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD A USED USED REMAINING 5847-03-00 CONSTRUCTION - 177,712 - 5,738 5,738 0.0%(5,738) CAPITAL -$ 177,712$ -$ 5,738$ 5,738$ 0.0%(5,738)$ TOTAL EXPENDITURES -$ 177,712$ -$ 5,738$ 5,738$ 0.0%(5,738)$ 10 CITY OF KENNEDALE ANNUAL PROGRAM OF SERVICES February 2019 "YOU'RE HERE. YOUR HOME." 15: EDC4B FUND 04: TEXAS LEVERAGE PROGRAM FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY ACTUAL % OF CY BUDGET BUDGET ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING 5800-04-00 LAND - - - - - 0.0%- CAPITAL -$ -$ -$ -$ -$ 0.0%-$ TOTAL EXPENDITURES -$ -$ -$ -$ -$ 0.0%-$ 11 CITY OF KENNEDALE ANNUAL PROGRAM OF SERVICES February 2019 "YOU'RE HERE. YOUR HOME." 19: EDC4B CAPITAL BOND FUND FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY ACTUAL % OF CY BUDGET BUDGET CATEGORY YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING BEGINNING FUND BALANCE 29,444$ 29,444$ 29,719$ 29,904$ INVESTMENT EARNINGS 145 460 - - - 31.6%- TOTAL REVENUES 145$ 460$ -$ -$ -$ 31.6%-$ TRANSFERS - - 29,719 - - 0.0%0.0%- CAPITAL - - - - - 0.0%0.0%- TOTAL EXPENDITURES -$ -$ 29,719$ -$ -$ 0.0%0.0%-$ REVENUES OVER EXPENDITURES 145$ 460$ (29,719)$ -$ -$ ENDING FUND BALANCE 29,589$ 29,904$ 0$ 29,904$ FUND BALANCE AS % OF EXP N/A N/A N/A N/A N/A RESERVE (NO REQUIREMENT)-$ -$ -$ -$ -$ RESERVE SURPLUS/(SHORTFALL)29,589$ 29,904$ 0$ -$ 29,904$ 12 CITY OF KENNEDALE ANNUAL PROGRAM OF SERVICES February 2019 "YOU'RE HERE. YOUR HOME." 19: EDC4B CAPITAL BOND FUND FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY ACTUAL % OF CY BUDGET BUDGET ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING 4401-00-00 INVESTMENT INCOME 145 460 - - - 31.6%- INVESTMENT EARNINGS 145$ 460$ -$ -$ -$ 31.6%-$ TOTAL REVENUES 145$ 460$ -$ -$ -$ 31.6%-$ 19: EDC4B CAPITAL BOND FUND 01: TOWN CENTER REDEVELOPMENT FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY ACTUAL % OF CY BUDGET BUDGET ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING 5580-01-00 TRANSFER OUT - - - - - 0.0%0.0%- TRANSFERS -$ -$ -$ -$ -$ 0.0%0.0%-$ 5800-01-00 LAND - - - - - 0.0%0.0%- 5847-01-00 CONSTRUCTION - - - - - 0.0%0.0%- CAPITAL -$ -$ -$ -$ -$ 0.0%0.0%-$ TOTAL EXPENDITURES -$ -$ -$ -$ -$ 0.0%0.0%-$ 13 CITY OF KENNEDALE ANNUAL PROGRAM OF SERVICES February 2019 "YOU'RE HERE. YOUR HOME." 95: EDC4B RESERVE FUND FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY ACTUAL % OF CY BUDGET BUDGET CATEGORY YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING BEGINNING FUND BALANCE 119,962$ 119,962$ 120,582$ 121,327$ INVESTMENT EARNINGS 401 1,365 - 210 1,018 29.4%(1,018) TOTAL REVENUES 401$ 1,365$ -$ 210$ 1,018$ 29.4%(1,018)$ TOTAL EXPENDITURES -$ -$ -$ -$ -$ 0.0%0.0%-$ REVENUES OVER EXPENDITURES 401$ 1,365$ -$ 210$ 1,018$ ENDING FUND BALANCE 120,363$ 121,327$ 120,582$ 122,345$ FUND BALANCE AS % OF EXP N/A N/A N/A N/A N/A RESERVE ($112,606 REQUIREMENT)112,606$ 112,606$ 112,606$ 112,606$ 112,606$ RESERVE SURPLUS/(SHORTFALL)7,757$ 8,721$ 7,976$ (112,606)$ 9,739$ 14 CITY OF KENNEDALE ANNUAL PROGRAM OF SERVICES February 2019 "YOU'RE HERE. YOUR HOME." 95: EDC4B RESERVE FUND FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY BUDGET % OF CY BUDGET BUDGET ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING 4401-00-00 INVESTMENT INCOME 401 1,365 - 210 1,018 29.4%(1,018) INVESTMENT EARNINGS 401$ 1,365$ -$ 210$ 1,018$ 29.4%(1,018)$ TOTAL REVENUES 401$ 1,365$ -$ 210$ 1,018$ 29.4%(1,018)$ 95: EDC4B RESERVE FUND FY17-18 FY17-18 FY18-19 CURRENT FY18-19 % OF PY BUDGET % OF CY BUDGET BUDGET ACCOUNT ACCOUNT NAME YTD ACTUAL ADOPTED MONTH YTD USED USED REMAINING TRANSFERS -$ -$ -$ -$ -$ 0.0%0.0%-$ TOTAL EXPENDITURES -$ -$ -$ -$ -$ 0.0%0.0%-$ Year October November December January February March April May June July August September Total FY2019 31,048$ 38,680$ 39,362$ 88,360$ 45,433$ -$ -$ -$ -$ -$ -$ -$ 80,961$ FY2018 34,607$ 38,169$ 28,985$ 31,808$ 54,501$ 31,672$ 41,253$ 43,121$ 36,295$ 41,089$ 39,590$ 29,697$ 150,262$ FY2017 29,583$ 38,719$ 27,285$ 29,652$ 35,265$ 26,215$ 29,043$ 33,374$ 26,747$ 33,648$ 16,530$ 28,850$ 118,303$ FY2016 31,046$ 39,712$ 32,662$ 25,293$ 38,669$ 29,196$ 26,505$ 38,181$ 27,906$ 28,195$ 29,231$ 30,459$ 125,685$ FY2015 23,985$ 31,479$ 27,515$ 24,594$ 35,857$ 24,104$ 27,064$ 39,783$ 42,821$ 55,252$ 48,766$ 59,232$ 146,818$ FY2014 21,990$ 29,867$ 31,661$ 22,458$ 32,594$ 23,228$ 26,412$ 31,319$ 25,832$ 23,976$ 28,866$ 22,659$ 106,954$ FY2013 33,617$ 31,297$ 23,446$ 20,135$ 30,003$ 20,791$ 20,318$ 32,020$ 21,136$ 22,435$ 27,973$ 26,025$ 103,066$ *Net payment after correcting an audit error.-$ Industry Amount % Change Adjusted ChangYTD FYTD General Services $10,892.29 -3.14%-11.46%$16,550.61 $43,293.56 Retail $10,561.34 4.04%-1.91%$19,212.17 $42,886.40 Manufacturing $9,241.10 -41.97%33.11%$17,141.52 $39,947.37 Wholesale $5,597.33 -34.01%122.34%$11,733.93 $28,611.63 Professional Services $5,325.62 -5.44%57.88%$10,450.54 $28,770.42 Food $2,976.23 3.51%10.33%$5,980.96 $14,785.28 Agricultural $1,252.32 7057.11%0.00%$55,669.02 $47,928.32 Miscellaneous $52.62 1.09%48.43%$103.45 $402.33 Accommodation $0.00 0.00%0.00%$0.00 $0.00 Sales Tax By Month 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 October November December January February March April May June July August September Sales Tax vs Expectation FY 2019 Five Year Average STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL Date: April 16, 2019 Agenda Item No: MONITORING INFORMATION - C. I. Subject: Schedule of Investment Activity for quarter ending March 31, 2019 II. Originated by: Brady Olsen, Finance Director III. Summary: In accordance with Public Funds Investment Act (PFIA), the investments should be reported quarterly. This is for the second quarter for FY19 and subsequently will be presented for each quarter to Council to stay current with PFIA. IV. Fiscal Impact Summary: V. Legal Impact: VI. Recommendation: Approve VII. Alternative Actions: VIII. Attachments: 1.March 31 2019 Qtrly Investment Report March 31 2019 Qtrly Investment Report.pdf City of Kennedale, Texas SCHEDULE OF INVESTMENT ACTIVITY For The Quarter Ending March 31, 2019 SUMMARY OF INVESTMENTS FOR THE QUARTER INVESTMENT STRATEGIES INVESTMENT PORTFOLIO ALLOWABLE BREAKDOWN MONTHLY BALANCES- INVESTMENTS Investment Pool Account Name Interest Rate January 2019 February 2019 March 2019 Interest Earned Texas Daily Consolidated Cash 0.59%32,468.68$ 32,528.35$ 32,595.02$ 192.27$ TexStar Consolidated Cash 0.59%338,032.09 338,654.47 339,347.99 2,001.70 TexPool Central Deposit 0.60%8,791,630.87 7,622,867.10 7,573,940.12 47,727.34 TOTAL INVESTMENT POOLS 9,162,131.64$ 7,994,049.92$ 7,945,883.13$ 49,921.31$ MONTHLY BALANCES- WELLSFARGO Bank Account Name Interest Rate January 2019 February 2019 March 2019 Interest Earned Wellsfargo Consolidated Cash N/A 294,751.32$ 498,771.17$ 428,664.20$ Wellsfargo Payroll Clearing 0.04%-0.05%47,105.44 44,711.73 49,405.93 10.37 Wellsfargo Section 125 Flex 0.04%-0.05%- - - - Wellsfargo Health Reimbursement 0.00%- - - Wellsfargo Employee Health Benefit Trust 0.00%4.84 5.57 39,684.55 3.49 Wellsfargo Economic Development Corp 0.00%30,264.61 30,221.85 30,177.70 TOTAL WELLSFARGO 372,126.21$ 573,710.32$ 547,932.38$ 13.86$ TOTAL MONTHLY BALANCES- ALL 9,534,257.85$ 8,567,760.24$ 8,493,815.51$ 49,935.17$ TRANSACTION ACTIVITY- INVESTMENTS Balance Balance Investment Pool Account Name 12/31/2018 Deposits Withdrawls Interest 3/31/2019 Texas Daily Consolidated Cash 32,402.75$ -$ -$ 192.27$ 32,595.02$ TexStar Consolidated Cash 337,346.29 2,001.70 339,347.99 TexPool Central Deposit 7,246,407.92 3,033,650.60 (2,753,845.74) 47,727.34 7,573,940.12 TOTAL INVESTMENT POOLS 7,616,156.96$ 3,033,650.60$ (2,753,845.74)$ 49,921.31$ 7,945,883.13$ TRANSACTION ACTIVITY- WELLSFARGO Balance Balance Bank Account Name 12/31/2018 Deposits Withdrawls Interest 3/31/2019 Wellsfargo Consolidated Cash 584,632.97$ 4,272,112.80$ (4,428,081.57)$ -$ 428,664.20$ Wellsfargo Payroll Clearing 6.14 1,100,355.53 (1,050,955.74) 10.37 49,405.93 Wellsfargo Section 125 Flex 0.00 - - - 0.00 Wellsfargo Health Reimbursement - 653.00 (653.00) - - Wellsfargo Employee Health Benefit Trust 3.80 156,507.68 (116,826.93) 3.49 39,684.55 Wellsfargo Economic Development Corp 30,324.60$ 114.99 (261.89) - 30,177.70 TOTAL WELLSFARGO 614,967.51$ 5,529,744.00$ (5,596,779.13)$ 13.86$ 547,932.38$ The City's main objectives in managing the portfolio are as follows:suitability,preservation &safety of principal,liquidity,marketability,diversification,and yield. Certificates of Deposit (50%),Investment Pools (100%)*,Money Market Mutual Funds (100%)*,Repurchase Agreements (50%)*,Government Obligations (25%),US Treasury &US Agency Callables (25%),US Government Agencies &Instrumentalities (100%),and US Treasury Notes/Bills (100%) *(no more than 50% in any individual pool, fund, or repurchase agreement) CITY OF KENNEDALE, TEXAS INVESTMENT REPORT FOR QUARTER ENDING March 31, 2019 The Quarterly Investment Report provides the City's investment portfolio position as of the report period indicated above.Fund of the City are invested in accordance with the City of Kennedale Investment Policy as originally adopted on September 13, 2001 and subsequently reviewed in June of 2018 100%of the City of Kennedale's investments are owned by the Pooled Cash Fund.As of the reporting quarter,93.88%of the City's investments are in investment pools, and 6.12% are invested in money market savings accounts. CASH BREAKDOWN BY FUND January 2019 February 2019 March 2019 01- General Fund $3,740,073.90 $3,859,420.04 $3,445,865.85 02- Debt Service Fund $1,082,769.19 $145,229.01 $161,580.32 04- Capital Project Fund -$1,044.52 $30,625.10 $36,897.27 05- Capital Replacement Fund $236,674.77 $326,559.63 $321,313.55 07- Storm Drainage Utility Fund $40,461.07 $10,102.33 $32,936.60 10- Water/Sewer Fund $2,406,892.43 $1,915,553.76 $1,934,075.71 12- Court Security Fund $18,695.76 $18,945.33 $19,300.97 13-CIP Tax Note $735,543.39 $731,608.33 $719,981.27 14- Park Dedication Fund $159,518.71 $159,791.02 $160,008.78 15- Economic Development Fund $258,200.67 $256,046.04 $269,250.29 16- Court Technology Fund $8,451.28 $8,755.84 $9,198.34 17- Streets Improvement Fund $426,099.19 $439,718.89 $445,687.13 18- Juvenile Case Manager Fund $13,373.28 $11,669.24 $11,186.39 21- TIF #1 New Hope Fund $15,391.04 $14,018.40 $14,048.10 31- Police Seizure $647.57 $648.67 $649.92 32- Library Building Fund -$2,588.73 -$4,967.23 -$5,386.81 34- LEOSE Fund $1,750.62 $1,870.89 $1,874.49 41- Park Rec/Other Donation Fund $14,527.45 $16,052.35 $14,472.50 45- Roadway Impact Fee Fund $270,358.09 $270,819.61 $271,341.37 61- Water Impact Fee Fund $145,433.74 $145,682.01 $145,962.67 62- Sewer Impact Fee Fund $129,144.56 $129,365.01 $129,614.25 83- Tree Reforestation Fund $69,406.16 $69,524.64 $69,658.59 85- Unclaimed Property Fund $1,990.24 $1,990.24 $1,990.24 95- EDC Reserve Fund $122,807.83 $123,017.47 $123,254.47 TOTAL ALL FUNDS 9,894,577.69$ 8,682,046.62$ 8,334,762.26$ - 50,000.00 100,000.00 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00 January 2019 February 2019 March 2019 Other Accounts Payroll Clearing Texas Daily TexStar - 1,000,000.00 2,000,000.00 3,000,000.00 4,000,000.00 5,000,000.00 6,000,000.00 7,000,000.00 8,000,000.00 9,000,000.00 January 2019 February 2019 March 2019 Main Accounts Central Deposit Wellsfargo - 5,000.00 10,000.00 15,000.00 20,000.00 25,000.00 30,000.00 35,000.00 40,000.00 January 2019 February 2019 March 2019 Holding Accounts Section 125 Flex Employee Health Benefit Trust 0.39% 4.01% 89.49% 6.12% Distribution of Money Texas Daily TexStar TexPool Wellsfargo STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL Date: April 16, 2019 Agenda Item No: REQUIRED APPROVAL ITEMS (CONSENT) - A. I. Subject: Consider approval of the minutes from the March 19, 2019 Regular Meeting II. Originated by: Leslie E. Galloway, City Secretary & Communications Coordinator III. Summary: Please see the attached minutes for your approval. IV. Fiscal Impact Summary: V. Legal Impact: VI. Recommendation: VII. Alternative Actions: VIII. Attachments: 1.2019_03.19_Minutes_City Council Regular Meeting_DRAFT_wm 2019_03.19_Minutes_City Council Regular Meeting_DRAFT_wm.pdf Page 1 of 5 CITY COUNCIL MINUTES | MARCH 19, 2019 KENNEDALE CITY COUNCIL MINUTES REGULAR MEETING | MARCH 19, 2019 CITY HALL COUNCIL CHAMBERS, 405 MUNICIPAL DRIVE WORK SESSION - 5:30 PM | REGULAR SESSION - 7:00 PM I. CALL TO ORDER Mayor Brian Johnson called the meeting to order at 5:33 p.m. II. WORK SESSION A. Presentation of the FYE 2018 annual audit draft – Comprehensive Annual Financial Report (CAFR) Finance Director Brady Olsen introduced Kevin Kemp – a partner at the City’s auditing firm BKD – who gave an overview of the FY18 CAFR and was available to answer questions from the Council. He noted that no significant changes were expected to the financial statements before submission to the State Comptroller’s Office by the end of March, that BKD expected the City would receive the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting for the 14th year in a row, and that the audit was being presented with a clean, unmodified opinion. Following a brief discussion, there was consensus among the City Council that questions would be submitted to Olsen; and that acceptance of the FY18 CAFR (Consent Item B) would be postponed until the next Regular Meeting. B. Discussion of items on the Regular Agenda At this time, there was discussion regarding Decision Items A and B (contracts to purchase water from and to transfer the operation and maintenance of the water and wastewater utility systems to the City of Arlington). Councilmember Rhodes noted that the O&M agreement had a term of 5 years, but that the water purchase agreement was for 20 years. In response to Councilmember Gilley’s questions regarding cost savings, Finance Director Brady Olsen presented projected financials. There were then questions regarding future capital projects, pass-through (transmission) rights, staffing within City Hall, a preliminary timeline for moving to the Arlington water supply, future rates, and contract language. Mayor Johnson recessed to Executive Session at 6:25 p.m. III. REGULAR SESSION Mayor Brian Johnson called the Regular Session to order at 7:05 p.m. IV. ROLL CALL Present: Mayor Brian Johnson; Mayor Pro Tem Sandra Lee, Place 3; Rockie Gilley, Place 1; Chris Pugh, Place 2; Linda Rhodes, Place 4; Jan Joplin, Place 5; Absent: NONE Staff: City Manager George Campbell, City Secretary & Communications Coordinator Leslie E. Galloway, City Attorney DRAFT UNTIL APPROVED BY COUNCIL Page 2 of 5 CITY COUNCIL MINUTES | MARCH 19, 2019 Wayne Olson, Finance Director Brady Olsen, Police Chief Tommy Williams, Fire Chief James Brown, Director of Planning & Economic Development Melissa Dailey, Library Director Amanda King, Director of Human Resources & Administrative Services Danielle Clarke, Public Works Director Larry Hoover, Administrative Assistant Rosie Ericson, Police Captain Darrell Hull, Police Officer Tara Culpepper, Backflow Customer Service Inspector (CSI) Dennis Brown V. INVOCATION Minister Marcus Simmons of Full of Faith Bible Church offered the invocation. VI. UNITED STATES PLEDGE AND TEXAS PLEDGE VII. VISITOR AND CITIZEN FORUM  Erin Jackson, 1037 Swiney Hiett Road, requested that Council consider her request for reimbursement for the clean-up necessary after sewage backed-up into her residence. City Manager George Campbell stated that this consideration could be added to an upcoming Executive Session for consultation with the City Attorney.  Ed White, 1106 Columbia Drive, Mansfield, a flooring installer hired by Ms. Jackson, offered his support of Ms. Jackson’s request and described some of the resulting damage to her home and the work that might be required.  John Hivale, 418 Coker Valley, praised the increased transparency under the current City Council, stated his hope that it would continue, and urged the community to be involved.  Laurie Middleton Sanders, 208 W 5th Street, invited the community to the Mayor’s History Lecture, the KKB Don’t Mess With Texas Clean-Up, and the KKB Spring Planting Kick-Off. VIII. REPORTS AND ANNOUNCEMENTS A. Updates from the City Council  JAN JOPLIN, PLACE 5, stated that she enjoyed a recent vacation.  LINDA RHODES, PLACE 4, stated that she felt the Senior Citizen’s bus should have a lift, thanked Fire Chief James Brown for the AED that was being installed at the Senior Center, announced that she attended the UIB meeting, and that she attended a portable rodeo event that she would like the City to consider hosting.  MAYOR PRO TEM SANDRA LEE, PLACE 3, stated that she, Mayor Johnson, and City Manager George Campbell met with several legislators during trips to Austin and Washington D.C.  CHRIS PUGH, PLACE 2, stated that he attended the Senior Outreach where several entities were represented, noting that Mayor Johnson was spearheading an effort to have Kennedale chosen as a satellite site for a JPS health center.  ROCKIE GILLEY, PLACE 1, stated that he had met with individuals who are working to reform property taxes in Texas through the proposal of elected appraisal district representatives and property tax caps among other efforts. B. Updates from the City Manager City Manager George Campbell stated that he attended Tarrant County Days at the State Capitol and the NLC Conference in Washington D.C. with Mayor Johnson and Mayor Pro Tem Lee where they met with legislators and other local elected and appointed officials regarding proposed bills that had the potential to affect local government. He reminded the City Council of the upcoming Employee Awards Banquet on Friday, March 22. DRAFT UNTIL APPROVED BY COUNCIL Page 3 of 5 CITY COUNCIL MINUTES | MARCH 19, 2019 C. Updates from the Mayor Mayor Brian Johnson stated that he discussed the potential for a county satellite healthcare location during the Senior Outreach meeting; that he attended the Tarrant County Homeless Coalition Board meeting; that he discussed mental health issues with State Representatives Bill Zedler and Beverly Powell; that he met with Tarrant County Precinct 2 Commissioner Devan Allen; that he plans to meet with County Judge Glen Whitley; that he and Mayor Pro Tem Lee met with U.S. Congressman Ron Wright regarding truancy grants; that he attended a Tarrant Regional Transportation Coalition (TRTC) meeting where drones, national infrastructure, and at-grade railroad crossings were discussed; that he met with the Water Committee where aging infrastructure was discussed; that he and Mayor Pro Tem Lee and Burleson Mayor Ken Shetter met with One Safe Place to discuss laws regarding domestic violence involving children; and that he plans to attend several upcoming events including his role in the Theater in the Park production of ‘Seussical’ in April. Mayor Johnson then proclaimed Saturday, May 18, 2019 ‘Kids to Parks Day’. IX. MONITORING INFORMATION A. Monthly Financials – February 2019 There was no discussion at this time B. Monthly EDC Financials and Activity Report There was no discussion at this time X. INCIDENTAL ITEMS XI. REQUIRED APPROVAL ITEMS (CONSENT) A. Consider approval of the minutes from the February 19, 2019 Regular Meeting B. Discuss and consider acceptance of independent auditor's draft report (Comprehensive Annual Financial Report (CAFR)) for the fiscal year ended September 30, 2018 Item A was removed from the Consent Agenda at the request of Councilmember Gilley; Item B was removed at the request of Councilmember Joplin. Councilmember Gilley requested that the February 19, 2019 minutes reflect the reasoning behind his motion to postpone item XII.C. on that agenda (a Resolution of Support for OM Housing’s application to TDHCA), stating that the postponement was to allow time to request an Attorney General opinion as to whether cases cited in letters sent by legal representatives of OM Housing apply to a Council decision on a Resolution of Support; the lawfulness of letters delivered by a private citizen threatening action against Councilmember Joplin if she did not recuse herself; and as to whether each of these threats of legal action constitute a coercion of a public official to influence a vote under Texas Penal Code 36.03. Motion To Approve Consent Item A (minutes from the February 19, 2019 Regular Meeting), with the requested correction. Action Approve, Moved By Gilley. Seconded By Joplin. Motion passes unanimously. DRAFT UNTIL APPROVED BY COUNCIL Page 4 of 5 CITY COUNCIL MINUTES | MARCH 19, 2019 Motion To Postpone Consent Item B (acceptance of the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2018). Action Postpone, Moved By Joplin. Seconded By Mayor Pro Tem Lee. Motion passes unanimously. XII. DECISION ITEMS A. Hold a Public Hearing and consider authorizing the City Manager to enter into a contract to transfer the operation and maintenance of the Kennedale water and sewer systems to the City of Arlington Finance Director Brady Olsen stated that he was grateful for the number of residents in attendance due to the significance of these contracts, noting that the City Council had previously received most, if not all, of this information but that it was being presented again for the benefit of the public; and that the Utility and Infrastructure Board (UIB), at their March 12 meeting, voted unanimously to recommend to the Council approval of both contracts. Olsen offered an overview of the contracts including goals, added assurances, projected savings, impacts to residents and employees, substantive changes, and other significant details and considerations. Olsen, City Manager George Campbell, and City Attorney Wayne Olson were available to answer questions from Council. The following registered for the combined Public Hearing on Items A and B:  Jerod Reeves, 1519 Diamond Creek Lane, declined to speak.  John Hivale, 418 Coker Valley, asked several questions regarding monitoring of bids, projected savings, and utility rates. In response, Finance Director Brady Olsen stated that the City of Arlington would report expenses for auditing; that Arlington would cover $100,000 of unexpected costs in the first two contract years; and that the current rates would not support ongoing operations without the contract, but under this contract rates were projected to be sufficient.  Jeff Nevarez, 338 Spring Branch Lane, did not speak but registered in favor.  Chad Wandel, 614 Reeves Lane, did not speak but registered in favor. Motion To Approve authorizing the City Manager to enter into a contract to transfer the operation and maintenance of the Kennedale water and sewer systems to the City of Arlington, contingent upon the City of Arlington’s approval of both contracts. Action Approve, Moved By Pugh. Seconded By Mayor Pro Tem Lee. Councilmember Gilley stated that Kennedale rates will be significantly higher than those paid Arlington customers, adding that residents should not expect lower rates going forward, but that he believed they would receive a better product and level of service. Further discussion included the Water Fund’s current deficit budget, the timeline for establishing an interconnect and transitioning to the Arlington water supply, compared costs of purchased vs. well water, effects on City of Kennedale employees, repairs needed on the water tanks, and the costs of ending the contract with Global. The Mayor called for a vote. Motion passes 3-1-1, with Councilmember Rhodes voting against and Councilmember Gilley abstaining. DRAFT UNTIL APPROVED BY COUNCIL Page 5 of 5 CITY COUNCIL MINUTES | MARCH 19, 2019 B. Hold a Public Hearing and consider authorizing the City Manager to enter into a contract to purchase potable water from the City of Arlington Motion To Approve authorizing the City Manager to enter into a contract to purchase potable water from the City of Arlington, contingent upon the City of Arlington’s approval of both contracts. Action Approve, Moved By Pugh. Seconded By Mayor Pro Tem Lee. Motion passes unanimously. COUNCIL DID NOT CONVENE INTO CLOSED SESSION AT THIS TIME. AN EXECUTIVE SESSION WAS HELD FOLLOWING THE WORK SESSION, BUT BEFORE THE REGULAR SESSION. XIII. EXECUTIVE SESSION A. Discussion of pending legal matters regarding Ron Sturgeon vs. City of Kennedale B. Discussion with the City Attorney regarding proposed contracts to purchase potable water from the City of Arlington and to transfer the operation and maintenance of the Kennedale water and sewer systems to the City of Arlington C. Pursuant to Section 551.074 deliberation of the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee: Discussion of City Manager's Annual Evaluation XIV. RECONVENE INTO OPEN SESSION, AND TAKE ACTION NECESSARY PURSUANT TO EXECUTIVE SESSION, IF NEEDED There was neither discussion nor action at this time. XV. ADJOURNMENT Motion To Adjourn. Action Adjourn, Moved By Mayor Pro Tem Lee. Seconded By Gilley. Motion passes unanimously. Mayor Johnson adjourned the meeting at 8:35 p.m. APPROVED: ATTEST: BRIAN JOHNSON, MAYOR LESLIE E. GALLOWAY, CITY SECRETARY DRAFT UNTIL APPROVED BY COUNCIL STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL Date: April 16, 2019 Agenda Item No: REQUIRED APPROVAL ITEMS (CONSENT) - B. I. Subject: Receive the independent auditor's report (Comprehensive Annual Financial Report (CAFR)) for the fiscal year ended September 30, 2018 II. Originated by: Brady Olsen, Finance Director III. Summary: A draft of the audit was distributed to the City Council at the last Regular Meeting on Tuesday, March 19, 2019. The final version was sent to Council by Finance Director Brady Olsen via email on Thursday, April 4. The accompanying Informal Staff Report is attached, and Council will receive bound copies of the CAFR during the meeting. IV. Fiscal Impact Summary: V. Legal Impact: VI. Recommendation: Approve VII. Alternative Actions: VIII. Attachments: 1.FYE 18 Audit Staff Report FYE 18 Audit Staff Report.pdf #2019-04-04 PAGE 1 CITY OF KENNEDALE | www.cityofkennedale.com INFORMAL STAFF REPORT to the Mayor and City Council DATE: Thursday, April 04, 2019 SUBJECT: Year End Audit Update ORIGINATED BY: Brady Olsen, Finance Director The annual year-end audit for the 2017-2018 fiscal year is complete. Attached, you will find the final CAFR for the City and EDC, as well as the Management Letter. We have once again received a “clean” audit, as the auditors believe our records are a fair representation of the financial health of the city. We will be submitting the document to the Government Finance Officer Association for recognition. You should be receiving a bound copy of the City CAFR by the April meeting date. GENERAL NOTES TO KEEP IN MIND, REGARDING THE AUDIT  The term 'Governmental Funds' encompasses all non-Water/Sewer Funds;  The term 'Non-Major Governmental Funds' includes LEOSE (Law Enforcement Officers Standards and Education), Park Dedication, Capital Projects, Roadway Impact Fees, Library Building, and Capital Bond Funds;  The term 'General Fund' refers to all other funds (not just our budgetary General Fund) and includes Streets, Capital Replacements, etc.  'Water and Wastewater' includes restricted water and sewer impact fees; however, the Stormwater Fund is reported separately.  Page 12 of the CAFR provides the best overview of the current assets of the major governmental funds.  Page 14 of the CAFR provides the best overview of the operations of the major governmental funds.  Page 16 and 17 of the CAFR provide the best overview of the Water and Sewer Fund.  Page 33 and 34 of the CAFR provide the best overview of the City’s capital assets.  Page 36 of the CAFR provides the best overview of the outstanding debts of the City. BUDGETARY HIGHLIGHTS The FY 17-18 budget was adopted with tax rates and water and sewer rates recommended by staff. Any significant differences from the FY ’17-‘18 adopted budget to our projected results were discussed throughout the FY 18-19 (current year) budget process. The following chart and notes highlight the variances of audited fund balances of each of the major funds from those projected at the time the budget was adopted. #2019-04-04 PAGE 2 CITY OF KENNEDALE | www.cityofkennedale.com FY 2017-2018 Fund Balance Projected at Budget Calculated Difference General Fund $1,465,368 $1,825,917 $360,549 Debt Service $48,073 $194,137 $146,064 Capital Replacement $285,856 $296,224 $10,368 Storm Water $163,688 $113,180 -$50,508 Water & Sewer $1,452,060 $1,558,017 $105,957 EDC $121,784 $168,178 $46,394 Street $348,119 $493,146 $145,027 1. For the General Fund, revenues were generally higher than anticipated. Additionally, we expect to receive a $156,000 FEMA reimbursement this year, which is now included in the fund balance projection. 2. For the Debt Service Fund, approximately $140,000 in debt payments were re-assigned per our auditors. 3. The Storm Water Fund encumbered capitals project at the end of the year. 4. The EDC received higher than anticipated sale tax revenue. 5. The Water and Sewer Fund is now anticipated to receive partial re-payment from the TIF in the current year from previous advances for capital projects. 6. The Street Fund is now anticipated to receive partial re-payment from the TIF in the current year from previous advances for capital projects. RESPONSE TO MANAGEMENT LETTER As we discussed during the selection process for a new auditing firm, we rely on our auditors to assist in many end of year accounting entries. This was particularly true in the FY ’17-’18 year end close out as we had lost key accounting personnel. We have since filled all positions and should be in a better position moving forward, although we will likely continue to rely on assistance from our audit firm in some of the more complicated GASB entries. In regard to controls, a city staff of our size will always be challenged to maintain a full segregation of duties. We are continually looking for ways to improve, and made several key changes to our cash handling process this past year. SHOULD YOU HAVE ANY QUESTIONS REGARDING THIS REPORT, PLEASE CONTACT BRADY OLSEN AT 817-985-2110 OR BOLSEN@CITYOFKENNEDALE.COM. STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL Date: April 16, 2019 Agenda Item No: REQUIRED APPROVAL ITEMS (CONSENT) - C. I. Subject: Consider authorizing Fire Chief James Brown to enter into a Clinical Affiliation Agreement with the School of EMS II. Originated by: Fire Chief James Brown III. Summary: The Kennedale Fire Department currently has two fire fighters enrolled in a program with the School of EMS, which requires a certain number of clinical hours on an ambulance. This contract allows them to conduct that training on City of Kennedale apparatus. There is no cost to the City and the School of EMS has provided proof of liability insurance to City staff. IV. Fiscal Impact Summary: V. Legal Impact: VI. Recommendation: Approve VII. Alternative Actions: VIII. Attachments: 1.School of EMS Agreement School of EMS Agreement.docx CLINICAL AFFILIATION AGREEMENT Kennedale Fire Department And School of EMS This agreement made and entered into this (Date) 03/25/2019 by and between (Clinical Site) Kennedale Fire Department (hereinafter referred to as the “clinical site”) and the School of EMS (hereinafter referred to as “School of EMS”) and will continue until the agreement is terminated by either party. I.PURPOSE The clinical site shall provide the School of EMS students with practical experience in EMS-based patient care activities through the clinical site’s owned entities and the School of EMS shall provide the student with academic experience. II.RESPONSIBILITIES OF THE CLINICAL SITE The clinical site shall: A.Provide cooperation to ensure students of the School of EMS receive an effective clinical experience. B.Provide a suitable clinical experience situation as prescribed by the curriculum provided by the School of EMS and outlined by the National Highway Traffic Safety Administration. C.Assist with clinical teaching and supervision of agreed upon number of students of the School of EMS. D.Ensure the standards of patient care established by the clinical site remain in control of the employees. E.Reserve the right to determine the manner in which the clinical site’s owned equipment and supplies shall be used and operated. F.Provide a contact person for the School of EMS at the clinical site so as to facilitate interaction between the training program and our system. III.RESPONSIBILITIES OF THE SCHOOL OF EMS The School of EMS shall: A.Ensure that students who use the clinical site’s facilities will abide by the clinical site’s policies. B.Ensure students of the School of EMS will have professional liability insurance in the appropriate amount prior to beginning clinical experience with the clinical site. C.Ensure each student has been provided infection control training as outlined by the Department of Transportation knowledge objectives for EMS courses. D.Ensure each student has been provided HIPAA training in accordance with the Federal and State guidelines. E.Ensure each student has been cleared through a background check to include the federal inclusion/exclusion list. F.Ensure each student has passed a 10-panel drug screen. G.Ensure that documentation has been established by the School of EMS on how students are determined to be proficient in both basic and advanced skills which are expected to be utilized in the clinical internship setting. H.Provides each student a Competency Check List so that the student may present this to the clinical site’s facility they are assigned to during all internship assignments. I.Consider promptly any complaint made by the clinical site against a student in accordance with the School of EMS standards and procedures of disciplinary action. J.Shall provide preceptor training to relevant clinical site staff at the clinical location(s) or via online services. IV.HOLD HARMLESS The School of EMS agrees and is bound to hold the clinical site whole and harmless against any and all claims for damages, costs and expenses to persons or property that may arise out of or be occasioned by this contract or any activities or from any act or omission of any teacher or student involved in the School of EMS. V.RESPONSIBILITIES OF THE CLINICAL SITE AND THE SCHOOL OF EMS The clinical site and the School of EMS shall: A.Agree upon the number of students to be placed at the clinical site for clinical rotations. B.Revise and modify this contract in writing if both parties agree to the revision or modification. VI.TERMINATION This contract may be terminated by either party upon one hundred eighty (180) days written notice to the other party by registered mail, return receipt requested. The termination shall not take effect until students who are enrolled at the time such notice is given have completed the courses in which they are enrolled. VII.DISCRIMINATION The clinical site and the School of EMS shall not lawfully discriminate in their respective performance of this contract. VIII.CONTACT PERSONS The contact person and authorized designee of the School of EMS for the purposes of this agreement is: School of EMS Patrick McGhee 115 Jordan Plaza Blvd. Tyler, Texas 75704 (903) 871-1325 The contact person and authorized designee of the clinical site for the purposes of this agreement is: _______________________ _______________________ _______________________ _______________________ EXECUTED the twenty fifth (day) of March (month) 2019 (year). The clinical site and the School of EMS have executed this agreement by and through one of its duly authorized officers, thereby binding themselves, their successors and assignees and representatives for the faithful and full performance of the terms and provisions of this contract. Clinical Site School of EMS By: _____________________________By: _____________________________ Printed:_________________________Printed: Patrick McGhee Title:___________________________Title: Clinical Coordinator By: _____________________________By: _____________________________ Printed: _________________________Printed: TC Howard Title:____________________________Title: Chief Operating Officer STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL Date: April 16, 2019 Agenda Item No: REQUIRED APPROVAL ITEMS (CONSENT) - D. I. Subject: Consider approval Resolution 548, denying the Distribution Cost Recover Factor (“DCRF”) application by Oncor Electric Delivery LLC II. Originated by: George Campbell, City Manager III. Summary: On April 8, 2019, Oncor Electric Delivery Company LLC (“Oncor” or “Company”) filed an Application for Approval to Amend its Distribution Cost Recover Factor (“DCRF”) to Increase Distribution Rates with each of the Cities in their service area. In the filing, the Company asserts that it is seeking an increase in distribution revenues of $29,433,804. Resolution 548 authorizes the City to join with the Steering Committee of Cities Served by Oncor (“OCSC”) to evaluate the filing, determine whether the filing complies with law, and if lawful, to determine what further strategy, including settlement, to pursue. Purpose of the Resolution: The purpose of the Resolution is to deny the DCRF application proposed by Oncor. Explanation of “Be It Resolved” Paragraphs: 1.This section authorizes the City to participate with OCSC as a party in the Company’s DCRF filing, PUC Docket No. 49427. 2.This section authorizes the hiring of Lloyd Gosselink Rochelle and Townsend, PC and consultants to review the filing, negotiate with the Company, and make recommendations to the City regarding reasonable rates. Additionally, it authorizes OCSC to direct any necessary administrative proceedings or court litigation associated with an appeal of this application filed with the PUC. 3.This paragraph finds that the Company’s application is unreasonable and should be denied. 4.This section states that the Company’s current rates shall not be changed. 5.The Company will reimburse Cities for their reasonable rate case expenses. Legal counsel and consultants approved by OCSC will submit monthly invoices that will be forwarded to Oncor for reimbursement. 6.This section recites that the Resolution was passed at a meeting that was open to the public and that the consideration of the Resolution was properly noticed. 7.This section provides that Oncor and counsel for OCSC will be notified of the City’s action by sending a copy of the approved and signed Resolution to counsel. IV. Fiscal Impact Summary: V. Legal Impact: VI. Recommendation: Approve VII. Alternative Actions: VIII. Attachments: 1.R548 ONCOR Rate Case Denial DCRF R548 ONCOR Rate Case Denial DCRF.pdf 7630501 Page 1 of 2 R548 CITY OF KENNEDALE, TX 2019 RESOLUTION NO. 548 A RESOLUTION OF THE CITY OF KENNEDALE, TEXAS, FINDING THAT ONCOR ELECTRIC DELIVERY COMPANY LLC’S APPLICATION FOR APPROVAL TO AMEND ITS DISTRIBUTION COST RECOVERY FACTOR PURSUANT TO 16 TEX. ADMIN. CODE §25.243 TO INCREASE DISTRIBUTION RATES WITHIN THE CITY SHOULD BE DENIED; FINDING THAT THE CITY’S REASONABLE RATE CASE EXPENSES SHALL BE REIMBURSED BY THE COMPANY; FINDING THAT THE MEETING AT WHICH THIS RESOLUTION IS P ASSED IS OPEN TO THE PUBLIC AS REQUIRED BY LAW; REQUIRING NOTICE OF THIS RESOLUTION TO THE COMPANY AND LEGAL COUNSEL. WHEREAS, the City of Kennedale, Texas, (“City”) is an electric utility customer of Oncor Electric Delivery Company LLC (“Oncor” or “Company”), and a regulatory authority with an interest in the rates and charges of Oncor; and WHEREAS, the City is a member of the Steering Committee of Cities Served by Oncor (“OCSC” or “Cities”), a membership of similarly situated cities served by Oncor that have joined together to efficiently and cost effectively review and respond to electric issues affecting rates charged in Oncor’s service area; and WHEREAS, on or about April 8, 2019, Oncor filed with the City an Application for Approval to Amend its Distribution Cost Recovery Factor (“DCRF”), PUC Docket No. 49427, seeking to increase electric distribution rates by approximately $29,433,804; and WHEREAS, all electric utility customers residing in the City will be impacted by this ratemaking proceeding if it is granted; and WHEREAS, Cities are coordinating a review of Oncor’s DCRF filing with designated attorneys and consultants to resolve issues in the Company’s application; and WHEREAS, Cities’ members and attorneys recommend that members deny the DCRF. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KENNEDALE, TEXAS: Section 1. That the City is authorized to participate with OCSC in PUC Docket No. 49427. Section 2. That, subject to the right to terminate employment at any time, the City of Kennedale, Texas, hereby authorizes the hiring of the law firm of Lloyd Gosselink Rochelle & Townsend, P.C. and consultants to negotiate with the Company, make recommendations to the City regarding reasonable rates, and to direct any 7630501 Page 2 of 2 R548 CITY OF KENNEDALE, TX 2019 necessary administrative proceedings or court litigation associated with an appeal of this application filed with the PUC. Section 3. That the rates proposed by Oncor to be recovered through its DCRF charged to customers located within the City limits, are hereby found to be unreasonable and shall be denied. Section 4. That the Company shall continue to charge its existing rates to customers within the City. Section 5. That the City’s reasonable rate case expenses shall be reimbursed in full by Oncor within 30 (thirty) days of presentation of an invoice to Oncor. Section 6. That it is hereby officially found and determined that the meeting at which this Resolution is passed is open to the public as required by law and the public notice of the time, place, and purpose of said meeting was given as required. Section 7. That a copy of this Resolution shall be sent to Matthew C. Henry, 1616 Woodall Rodgers Freeway, Dallas, Texas 75202 and to Thomas Brocato, Legal Counsel to OCSC, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725. DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF KENNEDALE ON THE 16TH DAY OF APRIL, 2019. APPROVED: ______________________________ MAYOR, BRIAN JOHNSON [ C I T Y S E A L ATTEST: ______________________________ CITY SECRETARY, LESLIE E. GALLOWAY APPROVED AS TO FORM AND LEGALITY: ______________________________ CITY ATTORNEY, DREW LARKIN STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL Date: April 16, 2019 Agenda Item No: DECISION ITEMS - A. I. Subject: Consider approval of Ordinance 659, amending the FY2018-19 Budget II. Originated by: Brady Olsen, Finance Director III. Summary: During the January 15, 2019 Regular City Council Meeting, Councilmember Joplin provided a list of suggested budget amendments. The City Council requested that staff provide an analysis and response to those suggested budget changes, which was done via the attached Informal Staff Report (ISR) on Monday, February 11, 2019. Since, Councilmember Joplin has requested that an Ordinance amending the budget be placed on this agenda as an action item (seconded by Councilmember Gilley). Ordinance 659 (and "Exhibit A") outline those amendments determined by staff to be both necessary and in the best interest of taxpayers. Combined General Funds 1.The Police Department received Justice Assistance Grant (JAG) in the amount of $73,645, which will be used to replace obsolete radios. Staff recommends amending the budget to spend these proceeds. 2.Staff budgeted $100,000 for legal services; however, as of March 31, 2019, more than $75,000 has been spent. Staff recommends increasing this line item to $150,000 to accommodate projected costs during the second half of FY2018-19. Capital Projects Funds 1.In October 2018, the City Council approved the issuance of $760,000 in tax notes to fund the City's portion of a TxDOT off-system bridge replacement project and the Safe Routes to Schools sidewalk project through NCTCOG. Staff recommends amending the Capital Bond Fund to allow the City to spend the proceeds from these tax notes on such projects. 2.During the February 19, 2019 Regular Meeting, the City Council expressed interest in spending a portion of the available Park Dedication Funds to improve current parks (particularly lighting, security, and upgrades to the ballfields at Sonora Park). Staff recommends amending the budget to allow $60,000 to be spent on such projects. IV. Fiscal Impact Summary: V. Legal Impact: VI. Recommendation: Approve VII. Alternative Actions: VIII. Attachments: 1.O659_FY2018-19 Budget Amendment O659_FY2018-19 Budget Amendment and Exhibit FINAL.pdf 2.2-11-19 Informal Staff Report- Budget Amendments 2-11-19 Informal Staff Report- Budget Amendments.pdf PAGE 1 OF 3, INCLUDING “EXHIBIT A” O659 CITY OF KENNEDALE, TX 2019 ORDINANCE NO. 659 AN ORDINANCE OF THE CITY OF KENNEDALE, TEXAS, AMENDING THE FISCAL YEAR 2018-2019 ADOPTED BUDGET OF THE CITY OF KENNEDALE, TEXAS; PROVIDING FOR THE INCORPORATION OF PREMISES; FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2018 AND ENDING SEPTEMBER 30, 2019; PROVIDING A SAVINGS AND REPEALER CLAUSE; PROVIDING FOR SEVERABILITY; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Kennedale, Texas Fiscal Year 2018-2019 Budget was adopted within the time and in the manner required by State Law; and WHEREAS, the City Council of the City of Kennedale, Texas, hereby finds and determines that it is prudent to amend specific line items due to the occurrence of unforeseen situations that have impacted those line items; and WHEREAS, the City Council of the City of Kennedale, Texas, further finds that the amendments, as set forth in Exhibit “A,” will serve in the public interest and are necessary to support City operations; and WHEREAS, the City Council of the City of Kennedale, Texas, finds and determines that the change in the Fiscal Year 2018-2019 Budget for the stated municipal purpose serves best interests of the taxpayers, is necessary, and warrants action at this time, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KENNEDALE, TEXAS: SECTION 1. That the above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. SECTION 2. The City of Kennedale, Texas, Fiscal Year 2018-2019 Budget is hereby amended to fund the projects represented by the line items as stated in Exhibit “A.” This Amendment No. 1 (Exhibit “A”) to the original Adopted Budget of the City of Kennedale, Texas, for the Fiscal Year 2018-2019 shall be attached to and made part of the original Adopted Budget by the City Secretary and shall be filed in accordance with State Law. This Ordinance is hereby adopted and shall constitute the first budget amendment that has occurred since the October 1, 2018 effective date of the City’s Fiscal Year 2018- 2019 Budget. PAGE 2 OF 3, INCLUDING “EXHIBIT A” O659 CITY OF KENNEDALE, TX 2019 SECTION 3. That this Ordinance shall be cumulative of all other Ordinances of the City affecting the Fiscal Year 2018-2019 Budget 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 pr ovisions of the Ordinances of the City of Kennedale, Texas, codified or uncodified, not in conflict with the provisions of this Ordinance, shall remain in full force and effect. SECTION 4. If any section, article, paragraph, sentence, clause, phrase, or word in this Ordinance or application thereof to any person or circumstance is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of the Ordinance, and the City Council hereby declares it would have passed such remaining portions of the Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 5. The City Secretary of the City of Kennedale, Texas, is hereby directed to engross and enroll this Ordinance in the Ordinance Records of the City and to properly record this Ordinance in accordance with the City Charter. SECTION 6. This Ordinance shall take effect from and after its date of passage , in accordance with law, and it is so ordained. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF KENNEDALE, TEXAS, THIS THE 16TH DAY OF APRIL, 2019. APPROVED: ______________________________ MAYOR, BRIAN JOHNSON ATTEST: [ C I T Y S E A L ] ______________________________ CITY SECRETARY, LESLIE E. GALLOWAY CITY OF KENNEDALE | www.cityofkennedale.com INFORMAL STAFF REPORT to the Mayor and City Council DATE: Wednesday, April 10, 2019 SUBJECT: Staff Response to 1/15/19 Budget Amendment Recommendations ORIGINATED BY: Finance Director, Brady Olsen During the January 15th City Council meeting, Councilmember Joplin provided a list of suggested budget changes. The City Council requested that staff provide an analysis and response to the suggested budget changes. The staff responses that follow fall into four main categories; “Legal or Practical Limitations”, “No Effect on Budget”, “Possible, but not Recommended”, and “Policy Decision”. The staff responses will hopefully clarify some of the information presented and address the impact that the implementation of such changes will have on the 2018-19 adopted budget. Legal or Practical Limitations Transfer $176,235.01 of the roadway impact fund reserves to the TIRZ fund and then transfer that same amount from the TIRZ fund to the Street Improvement fund - Because roadway impact fee revenue can only be used to pay for projects in the Roadway Impact Fee CIP/ engineering report, such a use of Impact Fees would not be permitted legally. Currently we are not actively pursuing any impact fee CIP projects, other than the $10,000 used annually, and as necessary, for engineering related to the New Hope Road project. Increase the transfer from the park dedication fund to the street fund from $35,000 to $80,000 - Park Dedication funds should ideally only be used for park improvements. However, park maintenance expenditures are technically allowable. Since the street fund (which hosts park maintenance) has been running an operating deficit since the water and sewer franchise fee was reduced, we have been using park dedication funds to help augment the park maintenance budget. The total transfer from the park dedication fund to the street fund could not exceed $61,420, the amount we are currently spending on park maintenance. Have the EDC reimburse the water/sewer fund $171,000 for the purchase price of land at 501 S. Dick Price Rd. - If the EDC decides to return title of the land to the City, it is unlikely there would be a cash payment. Such a transfer of title would increase the water and sewer fund’s long term assets but not affect its cash reserves. Reduce the City Manager’s travel budget by $3,000 – The $8,000 currently budgeted for possible travel related expenses of the City Manager is consistent with costs incurred in the prior CITY OF KENNEDALE | www.cityofkennedale.com year and with the Manager’s employment agreement. In the event that portions of budgeted travel by the Manager do not occur savings may indeed be realized. Reduce the Library travel budget by $1,000 - Our Library director is required to attend an annual conference in order to keep certain professional designations. This year, the conference is further away than in ’17-’18, thus the increased line item. Costs for this conference have already been incurred. No Effect on Budget The TIRZ Board could elect to use its revenue from increased values this year (~$115,000) to partially reimburse the City for funding previously made by the street fund and the water and sewer fund. If the board chooses to do this, the City can then decide the fund or funds to which such monies would be credited. Any such payment would reduce the reserves of the TIRZ and increase the reserves of the fund to which the monies were credited but would not be considered revenue. This action would not require a budget amendment. The payment(s) would not reduce the $186,000 operating deficit in the street fund or the $648,000 operating deficit in the water and sewer fund. Councilmember Joplin mentioned the potential expenditure for Council Chamber improvements proposed this past September at the cost of $62,000 – Council did not approve the project and funds were not spent in 2017-18. The projected operating reserves for closing 2017-18 were therefore adjusted accordingly in the new 2018-19 budget. There is no additional impact on the current budget that can be recognized or that would affect the $523,000 operating deficit in the general fund. Councilmember Joplin also questioned why stormwater investment income decreased $36,000 from the “first” budget to the “second” budget (emphasis added) - Stormwater fee revenue decreased by $38,000 from the City Manager’s proposed budget to the adopted budget because Council indicated it would not increase the stormwater fee. Councilmember Joplin pointed out that ~$15,000 in legal fees had been paid by the City for the EDC - This was analyzed by city staff and corrected. About one half of this amount was determined to actually have been charged incorrectly. The correction increases the general fund reserves, but would not affect the $523,000 operating deficit in the general fund. CITY OF KENNEDALE | www.cityofkennedale.com Possible but Not Recommended Roadway Impact Fund - eliminate the $10,000 transfer from the roadway impact fund to the TIRZ - The transfer is for updating the engineering for the New Hope Road project. It is recommended we continue moving forward on capital projects. By moving funds to the TIRZ, we are able to better track spending in that specific geographic area. Reducing this line item would not affect the operating deficit in the general fund, street fund, or water and sewer fund. Park Dedication Fund - increase the transfer from the park dedication fund to the street fund from $35,000 to $61,420 - Park Dedication funds should ideally only be used for park improvements, but park maintenance expenditures are technically allowable. Since the street fund (which hosts park maintenance) has been running an operating deficit since the water and sewer franchise fee was reduced, we have been using park dedication funds to help augment the park maintenance budget. We do not recommend increasing the transfer, as the spirit of the fee was meant for park acquisition and improvement. Increasing the transfer above the current level would drain the park dedication fund over the next several years and hamper the city’s ability to improve and expand its current park system. Increasing the transfer to $61,420 would reduce the street fund operating deficit from $186,000 to $160,000. Stormwater Fund - remove the $30,000 budgeted to acquire land in flood plains for flooding and erosion mitigation - We have spent ~$25,000 per year the past two years for this type of flooding and/or erosion mitigation efforts. Staff recommends continuing this effort to better protect citizens from potential flooding. Reducing this line item would not affect the operating deficit in the general fund, street fund, or water and sewer fund. General Fund - reduce the City budget for demolishing unsound structures by 50%, from $20,000 to $10,000 - We have a list of approximately 20 such structures in the City, with an estimated cost for demolition of $10,000 per structure. Reducing the budget by 50% would allow us to address only one such building. Our ability to have the City perform demolition is an important tool used to motivate owners to take care of their property. Our attorney has advised us that we should avoid incenting owners to improve their properties through use of this enforcement tool if we do not, in fact, have money budgeted to actually carry through with demolition. Reducing this line item would negatively impact the City’s ability to regulate unsound structures. Doing so would reduce the general fund operating deficit from $523,000 to $513,000. Please note that for all of the suggestions in this category of “possible but not recommended”, the city will only spend the funds if needed. Any funds budgeted but unspent will accrue to the appropriate fund balances. CITY OF KENNEDALE | www.cityofkennedale.com Policy Decision Councilmember Joplin suggested using $50,000 from the park dedication fund to pay for improvements to Sonora Park. If Council believes this is the best use of the fund, we can amend the budget and move forward with the project. We would recommend receiving input from the Parks Board before proceeding. A presentation by the Park Board Chair is scheduled for Council’s work session on February 19. SHOULD YOU HAVE ANY QUESTIONS REGARDING THIS REPORT, PLEASE CONTACT CITY MANAGER GEORGE CAMPBELL AT 817-985-2102 OR GCAMPBELL@CITYOFKENNEDALE.COM. STAFF REPORT TO THE HONORABLE MAYOR AND CITY COUNCIL Date: April 16, 2019 Agenda Item No: EXECUTIVE SESSION - A. I. Subject: Discussion with the City Attorney regarding a damage claim submitted by Erin L. Jackson (1037 Swiney Hiett Road) II. Originated by: III. Summary: IV. Fiscal Impact Summary: V. Legal Impact: VI. Recommendation: VII. Alternative Actions: VIII. Attachments: