City of Sanger Texas

MINUTES: CITY COUNCIL MEETINGSeptember 15, 2014

PRESENT: Mayor Thomas Muir, Councilman Russell Martin, Councilman Gary Bilyeuand Councilman Scott Stephens

ABSENT: Councilman Billy Ezell and Councilman Allen Chick

OTHERSPRESENT: Mike Brice City Manager, Tami Taber City Secretary, Meghann Piercy, Joe

Iliff Development Services Director, Leonard Dodson and Steve Palmer

1. Call Meeting to Order, Invocation, Pledge of Allegiance.

Mayor Muir called the meeting to order at 7:00 p.m. Councilman Martin led theInvocation followed by Councilman Bilyeu leading the Pledge of Allegiance.

2. Citizens Input:(Citizens are allowed 3 minutes to speak. The City Council is unable to respond or to discuss any issuesbrought up during this section).

Idaleene Schue Fuqua, 1400 E. University in Denton, spoke and advised that inOctober she will turn 91. She also wanted to make it clear again that it is her intentionthat the picture that is hung in the Council chambers belongs to the City of Sanger.

CONSENT AGENDA

3. a) Approval of Minutes: September 2, 2014 - City Councilb) Disbursementsc) Approve Interlocal Cooperation Agreement for Shared Governance Communications

and Dispatch Services System Between Denton County and the City of Sanger

Councilman Stephens made a motion to approve. Seconded by Councilman Martin.Motion carried unanimously.

4. Consider any Items Removed From Consent Agenda.

REGULAR AGENDA

5. Consider, Discuss and Possibly Approve Ordinance #09-11-14 - Approve BudgetAmendments for Fiscal Year 2013/2014.

The amendment was made due to grants and flood damage revenues received.

Councilman Martin made a motion to approve. Seconded by Councilman Bilyeu.Motion carried unanimously.

6. Consider, Discuss and Possibly Approve Ordinance #09-12-14 - Adopting the BudgetProviding for the Appropriation of Funds for Operating and Capital Expenditures byFund for the Fiscal Year Beginning October 1, 2014 and Ending September 30, 2015and Providing for the Intra and Inter Department Fund Transfers.

Councilman Martin made a motion to approve. Seconded by Councilman Stephens.Motion carried unanimously.

7. Consider, Discuss and Possibly Approve Ordinance #09-13-14- Levying a Tax Rate forthe General Government for the Fiscal Year 2014-2015 at a Rate of $0.679500 per $100Assessed Valuation.

Councilman Bilyeu mentioned that the City had not had an increase in the past threeyears.

Councilman Bilyeu made a motion to approve. Seconded by Councilman Martin.Motion carried unanimously.

8. Consider, Discuss and Possibly Approve Ordinance #09-14-14 - Approving the 2014Tax Roll.

Councilman Martin made a motion to approve. Seconded by Councilman Stephens.Motion carried unanimously.

9. Consider, Discuss and Possibly Approve Ordinance #09-15-14 - Specific Use Permit fora Quick Service Food and Beverage Shop on Property Zoned I-1 Industrial, Located at203 East Chapman Drive.

Mayor Muir opened the Public Hearing at 7:20 p.m.

Leonard Dodson, 212 Hillcrest, stated that he has been a resident of Sanger for thepast 15 years. He has built a BBQ trailer with a smoker (mobile food truck). Thistruck will have a walk up window to serve customers.

Joe Iliff spoke and advised that the Planning and Zoning Commission previouslyapproved this with 8 conditions listed in the ordinance.

Mayor Muir closed the Public Hearing at 7:23 p.m.

Councilman Bilyeu made a motion to approve. Seconded by Councilman Stephens.Motion carried unanimously.

10. Consider, Discuss and Possibly Approve Ordinance #09-16-14 - Specific Use Permit fora Quick Service Food and Beverage Shop on Property Zoned B-2 Business, Located at551 N. Stemmons Street.

Mayor Muir opened the Public Hearing at 7:38 p.m.

Steve Palmer, 120 Summer in Pottsboro, spoke on behalf of a Domino's Pizza. He isrequesting a convenience window located on the south side for online orders.

Joe Iliff spoke, the traffic flow through the driveway would be reversed on the driver'sleft side instead of their right. Incoming traffic would be on the far side of the drivefrom the building.

The Planning and Zoning Commission voted to deny this request.

Mayor Muir closed the Public Hearing at 7:40 p.m.

Councilman Stephens made a motion to approve. Seconded by Councilman Martin.Motion carried unanimously.

11. INFORMATION ITEMS:

a) All American Dog Report - August 2014

12. Adjourn.

Mayor Muir adjourned the meeting at 8:02 p.m.

CITY OF SANGER, TEXAS

August 31, 2014

General Fund Budget Variances

Overall, the General Fund is right on target for both revenues and expenditures. 92% of the fiscal year has passed and we have collected

99% of budgeted revenues and spent 91% of budgeted expenditures. The City has collected 98% of property taxes, 93% of sales taxes, 98%

of franchise fees, 111% of fire and ambulance revenues, 87% of fines and forfeitures, and 93% of solid waste revenues. Only 71% of license

and permits have been collected due to the diminishing availability of available lots. Collections for other revenues is 108% due to damage

reimbursements of $83,000 for the ice storm last December and the Library flood in March. All department expenditures except Parks &

Recreation are within 5% of the expected level of expenditures. Parks & Recreation had fewer seasonal employees than expected.

Contingency reserves in the general fund totaled $762,674 as of August 31st. When the $225,000 transfer from the Enterprise fund is made

at the end of the year, contingency reserves will be $987,669. We expect to end the year with revenues exceeding expenditures by enough

of a margin to increase contingency reserves to the full million dollar goal.

Enterprise Fund Budget Variances

Overall, the Enterprise Fund is right on target for both revenues and expenditures. The Water Department has collected 84% of their budget

revenues and spent 82% of their budgeted expenditures. The Wastewater Department has collected 88% of their budgeted revenues and

spent 82% of their budgeted expenditures. The Electric Department has collected 88% of their budgeted revenues and spent 93% of their

budgeted expenditures. Transmission costs in the electric department have increased substantially and the increase represents 3% of the

total Electric budget.

Contingency reserves in the enterprise fund totaled $847,198 as of August 31st. We expect to end the year with revenues exceeding

expenditures by enough of a margin to increase contingency reserves to the full million dollar goal.

REVENUE - GENERAL FUND

YTD

ACTUAL BUDGET

OVER BUDGET

(UNDER) BUDGET

Taxes 2,378,177 2,438,500 (60,323) Property 100.00% 1,671,380

Franchise Fees 564,914 574,600 (9,686) All other 100.00% 2,637,420

Licenses & Permits 77,421 108,400 (30,979) -

Fire & Ambulance 508,846 460,000 48,846 4,308,800

Fines & Forfeitures 143,920 164,500 (20,580) -

Other 251,494 161,500 89,994 4,308,800

Solid Waste 638,404 685,000 (46,596)

TOTAL REVENUE 4,563,176 4,592,500 (29,324) 94%

ACTUAL % OF BUDGETED REVENUE 99%

EXPECTED % OF BUDGETED REVENUE 94%

EXPENDITURES - GENERAL FUND

YTD

ACTUAL BUDGET

(OVER) BUDGET

UNDER BUDGET

Administration 387,452 452,208 64,756

Police & Animal Control 1,294,359 1,387,651 93,292

Fire & Ambulance 866,622 948,652 82,030

Municipal Court 187,402 213,384 25,982

Development Services 213,782 223,448 9,666

Streets 410,821 426,544 15,723

Parks & Recreation 434,069 575,383 141,314

Library 275,066 296,983 21,917

Solid Waste 572,374 600,000 27,626

TOTAL EXPENDITURES 4,641,947 5,124,253 482,306

REVENUE OVER (UNDER)

EXPENDITURES (78,771) (531,753) 452,982

OTHER FINANCING SOURCES (USES)

Transfer for PILOT 74,250 81,000 (6,750)

Transfer from Equip Rep Fund 40,000 40,000 -

Transfer from 4A 15,200 15,200 -

Transfer from 4B 15,200 15,200 -

Transfer from Debt Service 107,000 107,000 -

Transfer from Enterprise Fund 225,000 (225,000)

Use of Fund Balance (50,000) (50,000) -

TOTAL OTHER SOURCES (USES) 201,650 433,400 (231,750)

CHANGE IN FUND BALANCE 122,879 (98,353) 221,232

FUND BALANCE - BOY 899,429 1,087,145 (187,716)

FUND BALANCE - EOY 1,022,308 988,792 33,516

ACTUAL % OF BUDGETED EXPENDITURES 91%

EXPECTED % OF BUDGETED EXPENDITURES 91%


August 31, 2014

GENERAL FUND REVENUE & EXPENDITURES

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

Taxes Franchise Fees License & Permits Fire & Ambulance Fines & Forfeitures Other Solid Waste

98% 98% 71% 111% 87% 156% 93%

GENERAL FUND REVENUE BUDGET AND ACTUAL

Actual

Budget

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

Administration Police & AnimalControl

Fire &Ambulance

Municipal Court DevelopmentServices

Streets Parks &Recreation

Library Solid Waste

86% 93% 91% 88% 96% 96% 75% 93% 95%

GENERAL FUND EXPENDITURES BUDGET AND ACTUAL

Actual

Budget

REVENUE - ENTERPRISE FUND

YTD

ACTUAL BUDGET

OVER BUDGET

(UNDER) BUDGET

Water 1,234,071 1,465,000 (230,929)

Wastewater 1,052,775 1,201,000 (148,225)

Tap Fees 173,700 225,000 (51,300)

Electric 7,101,675 8,100,000 (998,325)

Interest 11,146 18,000 (6,854)

Miscellaneous 21,804 51,000 (29,196)

TOTAL REVENUE 9,595,171 11,060,000 (1,464,829)

ACTUAL % OF BUDGETED REVENUE 87%

EXPECTED % OF BUDGETED REVENUE 89%

EXPENDITURES - ENTERPRISE FUND

YTD

ACTUAL BUDGET

(OVER) BUDGET

UNDER BUDGET

Administration 888,714 1,013,849 125,135

Water 902,458 1,105,529 203,071

Wastewater 451,741 552,577 100,836

Electric 5,946,977 6,406,472 459,495

Debt Service 1,066,012 1,068,038 2,026

TOTAL EXPENDITURES 9,255,902 10,146,465 890,563

REVENUE OVER (UNDER)

EXPENDITURES 339,269 913,535 (574,266)

OTHER FINANCING SOURCES (USES)

Transfer to General Fund (225,000) 225,000

Transfer to General Fund - PILOT (74,250) (81,000) 6,750

Transfer to WW CIP (110,092) (120,000) 9,908

Transfers to Storm Recovery Fund (143,000) (150,000) 7,000

TOTAL OTHER SOURCES (USES) (327,342) (576,000) 248,658

CHANGE IN FUND BALANCE 11,927 337,535 (325,608)

FUND BALANCE- BOY 6,141,720 5,698,242 443,478

FUND BALANCE - EOY 6,153,647 6,035,777 117,870

ACTUAL % OF BUDGETED EXPENDITURES 91%

EXPECTED % OF BUDGETED EXPENDITURES 89%


August 31, 2014

ENTERPRISE FUND REVENUE & EXPENDITURES

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

Water* Wastewater Tap Fees Electric Interest Miscellaneous

84% 88% 77% 88% 62% 43%

ENTERPRISE FUND REVENUE BUDGET AND ACTUAL

ACTUAL

BUDGET

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Administration Water Wastewater Electric Debt Service

88% 82% 82% 93% 100%

ENTERPRISE FUND EXPENDITURES BUDGET AND ACTUAL

Actual

Budget

GENERAL

FUND

ENTERPRISE

FUND

DEBT

SERVICE

FUND

CAPITAL

PROJECTS

FUND TOTAL

Unrestricted:

Cash for Operations 421,272$ 1,398,741$ -$ -$ 1,820,013$

Contingency Reserves for Operations 762,764 847,198 1,609,962

Capital Projects:

General Capital Projects 461,244 461,244

Enterprise Capital Projects 2,409,343 4,100,478 6,509,821

Restricted:

Debt service 828,197 159,784 987,981

Water Deposits 351,903 351,903

Equipment Replacement 129,265 97,429 226,694

Hotel Occupancy Tax 22,183 22,183

Keep Sanger Beautiful (KSB) 5,508 5,508

Library 72,179 72,179

Court Security 6,631 6,631

Court Technology 474 474

Donations 11,008 594 11,602

TOTAL CASH AND INVESTMENTS 1,431,284$ 5,933,405$ 159,784$ 4,561,722$ 12,086,195$

37% is dedicated to Capital Projects

8% is dedicated to Debt Service

Cash available for operations is $1.8 million or

15% of total cash and investments.

General Fund unrestricted cash and investments

is $1.184 million. This amount provides 2.77

months of working capital.

Enterprise Fund unrestricted cash and

investments is $2.246 million. This amount

provides 2.66 months of working capital.

Contengency reserves for operations is $1.6

million or 13% of total cash and investments.

Of the $12.381 million in Total Cash:


CASH AND INVESTMENTS

August 31, 2014

Cash for Operations 16%

Contingency Reserves for Operations

14%

General Capital Projects

4%

Enterprise Capital Projects

53%

Debt service 8%

Water Deposits 3%

Equipment Replacement

2%

Name Acct. # Maturity Yield* Prior Month Current Month Restricted

Pooled Cash 001-00-1000 0.05% 477,610$ 332,388$

Employee Benefits Fund 110-00-1000 0.20% 89,753 88,884

OPERATING ACCOUNTS 567,363$ 421,272$

GF Contingency Reserve MM 2487969 001-00-1031 0.20% 352,369$ 352,429$

GF Contingency Reserve CD Prosperity 001-00-1039 04/26/2015 0.35% 205,034 205,034

GF Contingency Reserve CD 642606 001-00-1043 07/13/2015 0.20% 205,266 205,301

CONTINGENCY RESERVE 762,669$ 762,764$

GF Equipment Replacement MM 2376237 001-00-1032 0.20% 64,511$ 66,947$ Y

GF Equipment Replacement CD 719706 001-00-1033 07/06/2015 0.40% 62,297 62,318 Y

EQUIPMENT REPLACEMENT RESERVES 126,808$ 129,265$

Hotel Occupancy Tax 050-00-1000 20,130$ 22,183$ Y

Beautification Board - KSB 432-00-1000 5,461 5,508 Y

Library Restricted for Building Expansion 442-00-1000 21,403 21,804 Y

Library Building Expansion CD 702994 442-00-1035 01/22/2015 0.40% 50,358 50,375 Y

Court Security Restricted Fund 470-00-1000 6,481 6,631 Y

Court Technology Restricted Fund 471-00-1000 2,520 474 Y

Police Donations 620-00-1000 5,364 4,547 Y

Fire Donations 624-00-1000 2,775 2,775 Y

Banner Account for Parks 632-00-1000 2,536 2,536 Y

Library Donations 642-00-1000 1,125 1,150 Y

OTHER 118,153$ 117,983$

TOTAL CASH AND INVESTMENTS 1,574,993$ 1,431,284$

TOTAL UNRESTRICTED 1,330,032$ 1,184,036$

General Fund

August 31, 2014

Name Acct. # Maturity Yield Prior Month Current Month Restricted

Pooled Cash 008-00-1010 0.05% 1,511,311$ 1,398,741$

OPERATING ACCOUNTS 1,511,311$ 1,398,741$

Pooled Cash 008-00-1010 0.05% 50,349$ 51,903$ Y

Water Deposit CD 2375850 008-00-1041 01/03/2015 0.40% 300,000 300,000 Y

WATER DEPOSIT REFUND ACCOUNT 350,349$ 351,903$

Sewer Capital Improvements MM-10% Rev 008-00-1020 0.20% 414,326$ 343,360$ Y

Sewer Capital Reserve MM 2380226 Tap Fees 008-00-1038 0.20% 622,814 625,920 Y

Sewer Capital Reserve CD 642584 Tap Fees 008-00-1044 10/23/2014 0.15% 279,358 279,393 Y

SEWER CAPITAL RESERVE - TAP FEES 1,316,498$ 1,248,673$

Water Capital Reserve MM 2376156 008-00-1037 0.20% 1,158,223$ 1,160,670$ Y

WATER CAPITAL RESERVE - TAP FEES 1,158,223$ 1,160,670$

Combined EF Debt Service MM 2376113 008-00-1039 0.20% 843,506 828,197 Y

BOND FUND RESERVES 843,506$ 828,197$

EF Contingency Reserve MM 2809753 008-00-1012 0.20% 142,109$ 142,134$

EF Contingency Reserve CD 737860 008-00-1014 02/14/2015 0.40% 307,483 307,588

EF Reserve CD 642541 008-00-1040 03/25/2015 0.25% 103,134 103,147

EF Storm Recovery MM- 2% Electric Rev 008-00-1033 0.20% 281,281 294,329 Y

CONTINGENCY RESERVES 834,007$ 847,198$

EF Equipment Replacement MM 2376202 008-00-1034 0.20% 97,055$ 97,429$ Y

One Plus Pooled Cash 008-00-2605 0.05% 587 594 Y

OTHER 97,642$ 98,023$


TOTAL UNRESTRICTED 2,345,318$ 2,245,939$

Enterprise Fund

August 31, 2014


Pooled Cash 003-00-1000 0.05% 334,153$ 103,113$ Y

DSF Money Market 2376105 003-00-1010 0.20% 56,661 56,671 Y

TOTAL RESTRICTED 390,814$ 159,784$


Pooled Cash 004-00-1000 0.05% (1,554)$ 461,224$ Y

General CIP Money Market 2674823 004-00-1013 0.05% 553,187 20 Y

TOTAL RESTRICTED 551,633$ 461,244$


Pooled Cash 840-00-1000 0.05% 29,426$ 151,111$ Y

General CIP Money Market 2674823 840-00-1013 0.05% 3,949,120 3,949,367 Y

TOTAL RESTRICTED 3,978,546$ 4,100,478$

Cash and Investments

ENTERPRISE CAPITAL PROJECTS FUND

GENERAL CAPITAL PROJECTS FUND

August 31, 2014

DEBT SERVICE FUND


Pooled Cash 41-00-1000 0.05% 46,087$ 59,198$ Y

Cash NOW 900020693 Prosperity 41-00-1010 0.00% 512,458 536,898 Y

4A MM 902551273 Prosperity 41-00-1012 0.20% 468,769 465,853 Y

Sanger TX Ind Corp CD 486639 41-00-1013 10/02/2014 0.20% 93,733 93,749 Y



Pooled Cash 42-00-1000 0.05% 14,918$ 14,918$ Y

Cash MM 2379694 42-00-1010 0.05% 495,342 524,909 Y

4B CD 653500 42-00-1013 04/03/2015 0.40% 21,416 21,423 Y

4B CD 659924 42-00-1014 05/12/2015 0.40% 21,176 21,183 Y

4B CD 664243 42-00-1015 06/05/2015 0.40% 21,264 21,272 Y

4B CD 673277 42-00-1016 07/09/2015 0.40% 21,215 21,222 Y

4B CD 686115 42-00-1017 08/14/2014 0.40% 21,165 21,172 Y

4B CD 689521 42-00-1018 09/11/2014 0.40% 21,084 21,091 Y

4B CD 694371 42-00-1019 10/14/2014 0.40% 21,151 21,158 Y

4B CD 697230 42-00-1020 11/17/2014 0.40% 21,268 21,275 Y

4B CD 699934 42-00-1021 12/18/2014 0.40% 21,190 21,197 Y

4B CD 702285 42-00-1022 01/13/2015 0.40% 21,003 21,011 Y

4B CD 706078 42-00-1023 02/19/2015 0.40% 20,913 20,920 Y

4B CD 720097 42-00-1024 08/09/2014 0.40% 20,682 20,689 Y

4B CD 720119 42-00-1025 03/09/2015 0.40% 20,705 20,712 Y

TOTAL CASH AND INVESTMENTS 784,492$ 814,152$

August 31, 2014

Balance

4A FUND

August 31, 2014

4B FUND



Ethics Disclosure and Conflicts of Interest

a.

b.

Mike Brice has a relationship with First United Bank that consists solely of a personal checking and

savings account and a home mortgage.

Cheryl Davenport has no business relationships with any organizations offering to engage in an

investment transaction with the City.

Cheryl Davenport Mike Brice

Finance Director City Manager

the officer has a business relationship with a business organization offering to engage in

an investment transaction with the City (as defined in 2256.005 (i) (1-3); or

the officer is related within the second degree by affinity or consanguinity, as determined

under Chapter 573 of the Texas Government Code, to an individual seeking to transact

investment business with the entity. PFIA 2256.005 (i).

Cheryl Davenport Mike Brice


INVESTMENT REPORT

August 31, 2014

The Monthly Investment Report is in full compliance with the objectives, restrictions, and strategies as set

forth in the City of Sanger's Investment Policy and Texas Government Code 2256.023, the Public Funds

Investment Act (PFIA).

The City only invests in Money Market accounts and Certificates of Deposit. Interest is paid monthly on all

accounts. Therefore, book value and market value are the same and the City does not have accrued

interest on its investments.

In accordance with the PFIA, investment officers are required to file a disclosure statement with the Texas

Ethics Commission and the governing body if:

City of Sanger Texas

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