Rendering of New Fire Station #2 City of Denton, Texas · 2016-11-22 · Note: All figures presented2 are in millions of dollars. FY 2015-16 FY 2015-16 ANNUAL ANNUAL FY 2015-16 DESCRIPTION

City of Denton, TexasThird Quarter Financial Report

June 2016

2015-2016

Rendering of New Fire Station #2

About This Quarterly Financial Report

This report has been prepared by the City of Denton’s Finance Department. The Quarterly Financial Report is intended to provide our users (internal and external) with information regarding the City’s financial position and economic activity. This report includes information for the quarter ending June 30, 2016. This report is presented in six sections. 1. The Executive Dashboard section contains a high level

summary of the major operating funds using graphic illustrations and key economic indicators. Narrative disclosures are also included to highlight any significant changes or fluctuations.

2. The Financial Summary section reports the performance of the

major operating funds of the City. In addition, the report provides an end of year projection and a comparison to the budget for major revenue sources and expenditure items.

3. The Revenue & Economic Analysis section provides additional

analysis regarding key revenue sources and economic indicators.

4. The Quarterly Investment Report provides a summary of the

City’s investment portfolio, interest earnings and a brief market outlook.

5. The Performance Report provides Key Performance Indicators (KPIs) for each of the goals identified in the City’s strategic plan. In addition, the progress on Key Action Steps are highlighted.

6. The G.O. Bond Program Report provides updates of each of the Bond Propositions from the 2012 and 2014 bond elections.

1

The Quarterly Financial Report is intended to provide our users with timely and relevant information. Please provide us with any comments or suggestions you may have. If you would like additional information, feel free to contact me.

Chuck Springer Director of Finance 215 East McKinney Street Denton, TX 76201 940-349-8260

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Section 1

City of Denton Quarterly Financial Report

June 2016

Executive Dashboards

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Note: All figures presented are in millions of dollars.

FY 2015-16 FY 2015-16ANNUAL ANNUAL FY 2015-16

DESCRIPTIO N BUDGET 1 PRO JECTIO N VARIANCEBeginning Fund Balance as of 09/30/15 26.20$ 27.37$ RESO URCES: Ad Valorem Taxes 40.59 40.59 0% Sales Tax 30.93 31.88 3% Franchise Fees 6.23 6.23 0% O ther Taxes 0.34 0.34 0% Service Fees 6.87 7.34 7% Fines and Fees 4.46 3.79 -15% Licenses and Permits 2.58 3.25 26% Miscellaneous Revenue 1.54 1.58 3% Transfers In 15.21 15.31 1%Total Revenues 108.75 110.31 1%Total Resources 134.95 137.68 EXPENDITURES: Personal Service 77.75 77.18 -1% Material and Supplies 2.63 2.63 0% Maintenance and Repairs 2.91 3.18 9% Insurance 1.10 1.10 0% Miscellaneous 1.12 1.12 0% O perations 13.50 14.22 5% Transfers O ut 9.04 9.84 9% Fixed Assets 0.54 0.64 19%Total Expenditures 108.59 109.91 1%Net Income (Loss) 0.16 0.40 Ending Fund Balance 26.36$ 27.77$

City of Denton, Texas General Fund Executive Dashboard

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Jan‐16

Feb‐16

Mar‐16

Apr‐16

May‐16

Jun‐16

Revenue & Expenses (in Millions)YTD Revenue YTD Expenses

Key TrendsSales Tax revenues are projected $0.95M higher than budget due to stronger collections.Fines and Fees revenues are projected $0.67M lower than budget mainly due to municipal fines.Licenses and Permits revenues are projected $0.67M higher than budget mainly due to building permits. Personal Service expenditures are projected $0.57M lower than budget due to position vacancies.Maintenance and Repairs are projected $0.27M higher than budget due to Civic Center parking lot replacement.Operations expenditures are projected $0.72M higher than budget due to unanticipated contractual and management obligations.Transfers Out expenditures are projected $0.80M higher than budget due to street, sidewalk, and traffic projects.

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1Q‐11

2Q‐11

3Q‐11

4Q‐11

1Q‐12

2Q‐12

3Q‐12

4Q‐12

1Q‐13

2Q‐13

3Q‐13

4Q‐13

1Q‐14

2Q‐14

3Q‐14

4Q‐14

1Q‐15

2Q‐15

3Q‐15

4Q‐15

1Q‐16

2Q‐16

3Q‐16

Sales Tax Monthly Average by Quarter

1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2015‐16 budget process.

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City of Denton, Texas Electric Fund Executive Dashboard

DESCRIPTIO N

FY 2015-16 ANNUAL BUDGET 1

FY 2015-16 ANNUAL

PRO JECTIO NS FY 2015-16 VARIANCE

Beginning Working Capital and Reserves as of 9/30/15 55.70$ 59.83$ RESO URCES: O perating Revenues 167.41 167.92 0% Non-operating Revenues 0.30 6.25 1983%

Total Revenues 167.71 174.17 4%Total Resources 223.41 234.00

EXPENDITURES: Purchased Power 89.81 80.81 -10% O peration and Maintenance 39.42 37.82 -4% Non-O perating Expenditures 46.53 47.19 1%Total Expenditures 175.76 165.82 -6%Net Income (Loss) (8.05) 8.35

Ending Working Capital and Reserves 47.65$ 68.18$

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Oct‐15 Nov‐15 Dec‐15 Jan‐16 Feb ‐ 16 Mar‐16 Apr‐16 May‐16 Jun‐16

Revenue & Expenses (in Millions)

YTD Revenue YTD Expense

Key Trends

Non‐operating Revenues are projected to be $5.9 Million over budget due to elimination of reserve requirements with the retirement of all Revenue Bond Debt.Purchased Power expenditures are projected to be $9.0 Million lower than budgeted due to significantly lower natural gas prices.Operations and Maintenance expenditures are projected to be $1.6 Million lower than budgeted due the timing of hiring and vacant positions, as well as the timing of contract engineering consultants. 0

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1Q 11 3Q 11 1Q 12 3Q 12 1Q 13 3Q 13 1Q 14 3Q 14 1Q 15 3Q 15 1Q16 3Q16

2011 – 2016 Historical Quarterly GWH Sales

1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2015‐16 budget process.

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DESCRIPTION BUDGET 1 PROJECTION VARIANCEBeginning Working Capital and Reserves as of 09/30/152 16.96$ 16.89$ RESOURCES: Water Sales 35.34 34.64 -2% Other Water Revenues 1.02 1.08 6% Transfers In 6.30 13.31 111% Impact Fee Revenue 4.00 4.00 0%Total Revenues 46.66 53.03 14%

Total Resources 63.62 69.92

EXPENDITURES: Personal Service 10.51 9.87 -6% Operations, Services 11.39 10.74 -6% Capital Outlay 7.96 7.88 -1% Debt Service 13.44 13.44 0% Transfers Out 3.38 3.38 0%Total Expenditures 46.68 45.31 -3%Net Income (Loss) (0.02) 7.72 Ending Working Capital and Reserves 16.94$ 24.61$

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3Q11

1Q12

3Q12

1Q13

3Q13

1Q14

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1Q15

3Q15

1Q16

3Q16

2011‐2016 Historical Quarterly Gallons Sold (in Millions)

City of Denton, Texas Water Fund Executive Dashboard

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Oct‐15 Nov‐15 Dec‐15 Jan‐16 Feb‐16 Mar‐16 Apr‐16 May‐16 Jun‐16


YTD Revenue YTD Expenses

Key Trends

Transfer In revenues are projected to be over budget due to elimination of reserve requirements totaling $7.5 million with the retirement of all Revenue Bond Debt. Operations, Services are under budget due to reduced materials & supplies and outside services expenses. 1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2015‐16 budget process.2The Beginning Working Capital balance excludes $4.6 million of Impact Fees Reserves and $1.0 million of Development Plan Line Reserves.

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DESCRIPTION BUDGET 1 PROJECTION VARIANCEBeginning Working Capital and Reserves as of 09/30/152 9.60$ 11.06$ RESOURCES: Wastewater Fees 23.43 22.46 -4% Other Wastewater Revenue 1.61 3.09 92% Drainage Fees 4.44 4.47 1% Transfer In 0.87 5.28 507% Impact Fee Revenue 2.00 2.00 0%Total Revenues 32.35 37.30 15%

Total Resources 41.95 48.36 EXPENDITURES: Personal Service 8.02 7.73 -4% Operations, Services 8.90 8.15 -8% Capital Outlay 4.39 4.42 1% Debt Service 7.65 7.64 0% Transfer Out 3.38 3.29 -3%Total Expenditures 32.34 31.23 -3%

Net Income (Loss) 0.01 6.07 Ending Working Capital

and Reserves 9.61$ 17.13$


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2011‐2016 Historical Quarterly Gallons Billed (in Millions)

City of Denton, Texas Wastewater Fund Executive Dashboard

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Key TrendsOther Wastewater Revenue exceeds budget due to land sale proceeds of $1.2 million.Transfer In revenues are projected to be over budget due to elimination of reserve requirements totaling $4.4 million with the retirement of all Revenue Bond Debt.Operations, Services are under budget due to reduced materials & supplies and outside services expenses. 1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2015‐16 budget process.2The Beginning Working Capital balance excludes $3.0 million of Impact Fees Reserves, $1.0 million of Development Plan Line Reserves and $1.0 million for Drainage Reserves.

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DESCRIPTION BUDGET PROJECTION VARIANCEREVENUES: Residential Drainage Fees 1.64$ 1.66$ 1% Nonresidential Drainage Fees 2.81 2.81 0% General Fund Transfer 0.54 0.54 0%Total Revenues 4.99 5.01 0%

EXPENDITURES: Personal Service 1.80 1.74 -3% Operations, Services 0.88 0.88 0% Capital Outlay 0.75 0.85 13% Debt Service 0.95 0.95 0% Transfer Out 0.61 0.59 -3%Total Expenditures 4.99 5.01 0%

Net Income (Loss) -$ -$


City of Denton, Texas Drainage Operations Executive Dashboard

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Key Trends

Capital Outlay is projected to be higher than budget due to an increase in projects activity.

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DESCRIPTIO N BUDGET 1 PRO JECTIO NS VARIANCEBeginning Working Capital

and Reserves as of 09/30/152 4.91$ 5.85$ RESO URCES: Collection & Disposal 29.70 29.87 1% Recycling 0.82 0.82 0% O ther Revenue 0.67 0.64 -4%Total Revenues 31.19 31.33 0%

Total Resources 36.10 37.18 EXPENDITURES: Personal Service 10.36 10.49 1% O perations, Services 9.56 9.43 -1% Capital O utlay 1.31 1.26 -4% Debt Service 7.41 7.41 0% Transfer O ut 2.55 2.55 0%Total Expenditures 31.19 31.14 0%

Net Income (Loss) - 0.19 Ending Working Capital and Reserves 4.91$ 6.04$

0600

1,2001,8002,4003,0003,6004,2004,8005,4006,0006,6007,200

2014Qtr 4

2015Qtr 1

2015Qtr 2

2015Qtr 3

2015Qtr 4

2016Qtr 1

2016Qtr 2

2016Qtr 3

Refuse Tonnage Recycling Tonnages

Residential Curbside Collection Tonnage


City of Denton, Texas Solid Waste Fund Executive Dashboard

Key TrendsLandfill fees are expected to be greater than budget due to increased collection tonnage.Other Revenue is lower than expected due to less than anticipated services for construction projects for other City funds.

02,5005,0007,500

10,00012,50015,00017,50020,00022,50025,00027,50030,00032,500

2014Qtr 4

2015Qtr 1

2015Qtr 2

2015Qtr 3

2015Qtr 4

2016Qtr 1

2016Qtr 2

2016Qtr 3

Commercial Refuse & Recycling (Front & Side Load)Cubic Yards Serviced per Week

Commercial Refuse Commercial Recycling

1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2015‐16 budget process.2The Beginning Working Capital Reserve excludes $6.93 million of Landfill Closure/Post Closure reserves.

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City of Denton, Texas Airport Fund Executive Dashboard

Key TrendsAirport Ground Lease revenue is less than expected due to the delay in the completion of the new hangar.FBO Commissions are less than expected because of low fuel prices.Gas Well Royalties are less than budget due to continuing low natural gas prices.Capital spending transfers are less than budget due to reduced construction spending.

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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016YTD

GAS WELL REVENUE(in millions of dollars by fiscal year)

- 5,000

10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000

2Q -

103Q

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4Q -

101Q

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2Q -

113Q

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4Q -

111Q

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123Q

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4Q -

121Q

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133Q

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4Q -

131Q

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2Q -

143Q

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4Q -

141Q

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2Q -

153Q

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4Q -

151Q

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2Q -

163Q

- 16

AIRPORT OPERATIONS BY QUARTER(takeoff or landing)

Note: All financial amounts presented are in millions of dollars.


DESCRIPTIO N BUDGET 1 PRO JECTIO N VARIANCEBeginning Working Capital and Reserves as of 09/30/15 3.75$ 3.40$ RESO URCES: Airport Ground Leases 0.58 0.43 -26% FBO Commissions 0.37 0.19 -49% Miscellaneous 0.05 0.08 48%Total O perating Revenues 1.00 0.70 -30%EXPENDITURES: Personal Service 0.63 0.63 0% O perations, Services 0.44 0.44 0% Transfer O ut 0.46 0.46 0%Total O perating Expenditures 1.53 1.53 0%

Net O perating Income (Loss) (0.53) (0.83) NO N-O PERATING REVENUES: Investment Income 0.03 0.03 0% Gas Well Royalties 0.93 0.50 -46%Total Non-O perating Revenues 0.96 0.53 -45%

NO N-O PERATING EXPENDITURES: Debt Service 0.48 0.48 0% Transfer O ut - Capital 0.60 0.17 -72%Total Non-O perating Expenditures 1.08 0.65 -40%Net Non-O perating Income (Loss) (0.12) (0.12)

Net Income (Loss) (0.65) (0.95)

Ending Working Capital and Reserves 3.10$ 2.45$

1Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2015‐16 budget process.

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DESCRIPTIO N BUDGET 1 PRO JECTIO N VARIANCEBeginning Fund Balance

as of 09/30/2015 1.02$ 1.39$ RESO URCES: Franchise Fees 9.97 9.97 0% Street Cuts 0.35 0.35 0% Investment Income 0.01 0.02 100% Transfers In 0.79 0.86 9%Total Revenues 11.12 11.20 1%

Total Resources 12.14 12.59

EXPENDITURES: Personal Service 2.79 2.79 0% Materials & Supplies 0.08 0.08 0% Maintenance & Repairs 7.00 7.03 0% O perations, Services 0.68 0.68 0% Transfer O ut 0.57 0.48 -16%Total Expenditures 11.12 11.06 -1%Net Income (Loss) - 0.14

Ending Fund Balance 1.02$ 1.53$

1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2015-16 budget process.

City of Denton, Texas Street Improvement Fund Executive Dashboard

Key Trends

Tons of asphalt laid decreased in the 3rd quarter as compared to FY14‐15 due to rain delays and a focus on capital projects work.


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Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16



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52

65

Qtr1 Qtr2 Qtr3

Tons of Asphalt Laid (in Thousands)

FY14-15 FY15-16

01020304050

Qtr 1 Qtr 2 Qtr 3

Lane Miles Surface Treatment

FY 14-15 FY 15-16

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FY 2015-16 FY 2015-16

GRANT ANNUAL FY 2015-16

DESCRIPTIO N AMO UNT PRO JECTIO N VARIANCE2015-16 Budget Comm Development 2.75$ 1.85$ -33% Public Safety 0.75 0.43 -43% Parks & Recreation 1.54 1.54 0% O ther 0.34 0.33 -3%Total Budget 5.38 4.15 -23%

New Awards Comm Development 0.09 0.09 0% Public Safety 0.01 0.01 0% O ther 0.23 0.23 0%Total New Awards 0.33 0.33 0%

Totals 5.71$ 4.48$ -22%

COMM DEV50%

PUBLIC SAFETY13%

PARKS & REC27%

OTHER10%

FY 2015‐16 Grants Awarded

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PUBLICSAFETY

PARKS&REC

OTHER

Awards Expenses

FY 2015‐16 Awards & Expenses (in Millions)

Key Trends

The following grants have been received in FY 2015‐16: Community Development : ESG additional award $5,522, Amy Young Program $88,000.Fire Department: 2015 SHSP: $2,352.TxDot US380 Traffic Signals Grant: $235,806

City of Denton, Texas Grants Dashboard


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Section 2


June 2016

This report is designed for internal use and does not include all the funds and accounts included in the City of Denton’s operations. The information provided is unaudited; for a complete audited report, please refer to the City of Denton Comprehensive Annual Financial Report, available through the City’s Finance Department, City Secretary’s Office, or Denton Public Libraries.

FINANCIAL SUMMARY

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City of Denton General FundSchedule of Revenues - Budget vs Projection (Unaudited)For the Period Ended June 30, 2016

PRIOR BUDGET CURRENT ANNUAL ANNUAL BUDGET VS

REVENUE DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION

Current Year - Ad Valorem 37,042,170$ 39,977,232$ 39,722,322$ 39,977,232$ 39,977,232$ 0%

Delinquent - Ad Valorem 232,578 173,898 14,994 263,482 263,482 0%

Miscellaneous Penalties & Fees 293,497 268,537 222,467 348,254 348,254 0%

Ad Valorem Taxes 37,568,245 40,419,667 39,959,783 40,588,968 40,588,968 0%

Sales Tax 22,419,040 23,197,493 23,939,870 30,925,867 31,879,000 3%

Franchise - Gas Utilities 371,376 353,980 238,793 561,852 561,852 0%

Franchise - Private Electric Utilities 72,704 43,775 91,474 162,124 162,124 0%

Franchise - Cable 93,061 393,228 317,099 638,315 638,315 0%

Franchise - Telecom 421,251 133,043 169,433 295,640 295,640 0%

Franchise - Denton Municipal Utilities 3,006,456 3,033,856 3,133,554 4,570,918 4,570,918 0%

Franchise Fees 3,964,848 3,957,882 3,950,353 6,228,849 6,228,849 0%

Other Taxes 186,826 170,264 202,550 340,528 340,528 0%

Ambulance Service Fees 1,838,754 1,920,077 2,075,597 3,168,000 3,443,000 9%

Charges to Bond Funds 167,700 - - - - 0%

Fire Department Fees 118,083 187,917 131,264 250,557 151,427 -40%

Building Inspections Fees 371,286 357,997 405,754 482,527 484,138 0%

Park Department Fees 956,273 950,580 1,090,158 1,612,826 1,612,826 0%

Planning Department Fees 323,219 590,264 1,002,330 786,969 1,078,449 37%

Reprographics Fees 256,945 345,895 266,741 461,130 461,130 0%

Miscellaneous Service Fees 86,888 79,270 90,229 105,693 105,693 0%

Service Fees 4,119,148 4,432,000 5,062,073 6,867,702 7,336,663 7%

Denton Municipal Fines 1,419,601 1,588,584 1,224,890 2,118,112 1,622,093 -23%

Parking Fines 140,155 169,657 223,505 226,208 188,010 -17%

Miscellaneous Fines and Fees 705,438 801,946 704,873 1,098,227 1,001,690 -9%

Court Administrative and Service Fees 704,897 722,065 707,540 1,022,380 981,197 -4%

Fines and Fees 2,970,091 3,282,252 2,860,808 4,464,927 3,792,990 -15%

Demolition Permits 8,665 7,266 5,605 9,690 9,690 0%

Building Permits 1,867,946 1,795,608 2,275,667 2,399,453 3,111,203 30%

Certificate of Occupancy 51,811 65,520 62,295 87,360 87,360 0%

Miscellaneous Licenses and Permits 48,472 66,411 35,933 88,539 41,884 -53%

Licenses and Permits 1,976,894 1,934,805 2,379,500 2,585,042 3,250,137 26%

Investment Income 153,600 147,405 230,352 196,541 271,541 38%

Miscellaneous Revenues 932,639 450,385 993,112 1,342,208 1,308,889 -2%

Miscellaneous Resources 1,086,239 597,790 1,223,464 1,538,749 1,580,430 3%

ROI - Denton Municipal Utilities 4,516,465 5,197,286 4,881,286 7,229,529 7,232,583 0%

Transfers 5,805,710 5,985,100 5,973,038 7,979,788 8,082,415 1%

Transfers 10,322,175 11,182,386 10,854,324 15,209,317 15,314,998 1%

Total General Fund Revenues 84,613,506$ 89,174,539$ 90,432,725$ 108,749,949$ 110,312,563$ 1%

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City of Denton

General Fund

Schedule of Expenditures - Budget vs Projection (Unaudited)

For the Period Ended June 30, 2016


Y-T-D Y-T-D Y-T-D BUDGET PROJECTION1

PROJECTION

NEIGHBORHOOD SERVICES

Building Inspections 1,553,490$ 2,179,333$ 1,855,920$ 2,905,378$ 2,905,378$ 0%

Community Improvement Services 927,931 1,370,290 1,104,527 1,826,791 1,826,791 0%

Libraries 4,068,897 4,334,223 4,126,555 5,778,146 5,829,699 1%

Parks and Recreation 7,620,732 9,184,631 8,092,700 12,244,373 12,244,373 0%

Planning 1,635,256 2,123,026 1,720,696 2,911,801 2,911,801 0%

Gas Well Review 267,825 320,879 194,271 427,777 427,777 0%

Social Services 333,861 371,916 374,421 495,812 495,812 0%

16,407,992 19,884,298 17,469,090 26,590,078 26,641,631 0%

PUBLIC SAFETY

Animal Services 983,608 1,054,269 1,025,917 1,405,491 1,405,491 0%

Fire 16,664,298 19,299,591 18,060,936 25,702,330 25,813,561 0%

Municipal Court 962,731 1,097,307 967,491 1,462,866 1,462,866 0%

Municipal Judge 271,137 329,160 260,971 438,813 438,813 0%

Police 19,153,750 21,080,609 19,549,715 28,107,958 28,107,958 0%

38,035,524 42,860,936 39,865,030 57,117,458 57,228,689 0%

TRANSPORTATION

Traffic Operations 1,179,254 1,586,642 1,282,394 2,115,224 2,455,224 16%

Transportation Operations 279,886 360,533 300,838 480,633 687,633 43%

Street Lighting 551,712 551,324 539,997 735,000 735,000 0%

2,010,852 2,498,499 2,123,229 3,330,857 3,877,857 16%

ADMINISTRATIVE & COMMUNITY SERVICES

Cable Television 220,436 242,195 217,453 322,872 322,872 0%

City Manager's Office 1,965,807 2,165,635 1,996,384 2,887,953 2,887,953 0%

Economic Development 1,690,754 2,433,977 1,776,597 3,244,853 3,244,853 0%

Facilities Management 2,559,932 2,854,826 2,559,398 3,805,911 4,070,911 7%

Finance 2,486,799 2,144,260 1,994,574 2,858,615 2,858,615 0%

Human Resources 1,007,822 1,358,830 1,241,549 1,804,474 1,804,474 0%

Internal Audit 29,205 56,258 45,934 75,000 75,000 0%

Legal Administration 1,755,323 1,698,627 1,505,965 2,264,527 2,264,527 0%

Public Communications Office 289,021 493,239 506,672 657,558 657,558 0%

Reprographics 327,907 345,609 317,236 460,745 460,745 0%

Non-Departmental 2,615,495 2,511,041 3,406,296 3,173,464 3,519,242 11%

14,948,501 16,304,497 15,568,058 21,555,972 22,166,750 3%

TOTAL EXPENDITURES 71,402,869$ 81,548,230$ 75,025,407$ 108,594,365$ 109,914,927$ 1%

1A budget amendment is planned in September 2016 to cover the anticipated expenditures in excess of the modified annual budget.

15

City of Denton

Electric Fund

Schedule of Revenues and Expenditures - Budget vs Projection (Unaudited)



DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET1

PROJECTION PROJECTION

Beginning Working Capital

and Reserves as of 9/30/15 55,704,256$ 59,828,699$

REVENUES:

Operating Revenues 111,401,449$ 113,925,220$ 113,747,696$ 167,407,861 167,917,336 0%

Non-operating Revenues 214,525 218,464 293,107 300,000 6,249,969 1983%

Total Revenues 111,615,974 114,143,684 114,040,803 167,707,861 174,167,305 4%

EXPENDITURES:

Purchased Power 64,791,056 60,271,170 63,293,391 89,808,303 80,806,036 -10%

Operation and Maintenance 21,672,037 28,749,819 23,841,945 39,421,717 37,815,106 -4%

Return on Investment Return on Investment3,232,142 3,467,901 3,456,682 5,085,712 5,094,722 0%

Franchise Fee Franchise Fee4,607,820 4,952,570 4,930,101 7,265,302 7,278,174 0%

Non-Operating Expenditures 24,109,144 28,080,372 27,020,478 34,172,853 34,826,412 2%

Total Expenditures 118,412,199 125,521,832 122,542,597 175,753,887 165,820,450 -6%

Net Income (Loss) (6,796,225)$ (11,378,148)$ (8,501,794)$ (8,046,026) 8,346,855

Ending Working Capital and Reserves 47,658,230$ 68,175,554$

1 Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2015-16 budget process.

16

City of Denton

Water Fund







and Reserves as of 09/30/151

16,960,052$ 16,893,397$

REVENUES:

Water Sales Residential 9,623,656$ 11,109,059$ 10,821,179$ 17,455,940 17,746,823 2%

Water Sales Commercial 9,337,354 11,241,752 10,883,248 16,607,584 15,891,547 -4%

Water for Resale 881,085 1,076,755 469,404 1,273,688 995,641 -22%

Other Water 655,335 566,283 837,278 927,151 987,279 6%

Transfers In 4,567,488 4,727,361 4,640,661 6,303,147 13,309,704 111%

Investment Income 50,831 70,500 57,814 94,000 92,000 -2%

Impact Fee Revenue 2,700,000 3,000,000 3,000,400 4,000,000 4,000,000 0%

Total Revenues 27,815,749 31,791,710 30,709,984 46,661,510 53,022,994 14% Use of Reserves - - - -

EXPENDITURES:

Personal Service 6,549,932 7,403,602 6,722,104 10,508,368 9,865,139 -6%

Purchased Power 946,272 1,078,280 927,384 1,593,340 1,593,000 0%

Purchase of Water 68,198 - - - - 0%

Materials and Supplies 931,165 1,136,293 1,006,221 1,758,560 1,607,895 -9%

Maintenance and Repairs 720,979 1,035,278 755,123 1,458,138 1,470,166 1%

Insurance 164,645 173,474 173,473 231,299 231,299 0%

Miscellaneous 124,054 317,200 239,918 406,667 306,951 -25%

Operations, Services 1,328,278 1,935,467 1,344,098 2,883,319 2,517,429 -13%

Capital Outlay 2,703,224 5,061,718 5,556,740 7,958,676 7,879,596 -1%

Return on Investment 696,545 803,824 794,544 1,269,253 1,246,745 -2%

Franchise Fee 995,065 1,133,262 1,135,063 1,789,442 1,757,051 -2%

Debt Service 13,428,332 10,080,827 12,939,296 13,441,102 13,443,254 0%

Transfers Out 2,405,281 2,537,744 2,534,003 3,383,659 3,383,659 0%


Net Income (Loss) (3,246,221)$ (905,259)$ (3,417,983)$ (20,313) 7,720,810

Ending Working Capital

and Reserves 16,939,739$ 24,614,207$

1 The Beginning Working Capital and Reserves excludes Fund Balance from the Impact Fee Reserve Fund of $4,587,529 and $1,000,000

of Development Plan Line Reserves.


17

City of Denton

Wastewater Fund




DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET2PROJECTION PROJECTION



9,603,331$ 11,063,297$

REVENUES:

Residential Fees 7,961,514$ 8,257,016$ 8,146,342$ 10,973,246 10,781,996 -2%

Commercial Fees 7,922,827 8,520,977 8,730,599 11,835,262 11,027,592 -7%

Effluent Irrigation Fees 64,241 41,570 75,269 74,063 75,269 2%

Wholesale Fees 447,994 419,637 462,733 548,597 574,765 5%

Other Wastewater Fees 1,091,583 1,114,718 2,574,206 1,556,366 3,017,034 94%

Drainage Fees 3,386,908 3,320,878 3,359,584 4,445,722 4,467,278 0%

Transfer In 718,379 653,231 711,981 870,975 5,283,619 507%

Interest Revenue 34,513 37,500 54,834 50,000 73,112 46%

Impact Fee Reserves 1,350,000 1,500,000 1,500,200 2,000,000 2,000,000 0%

Total Revenues 22,977,959 23,865,527 25,615,748 32,354,231 37,300,665 15%

EXPENDITURES:


Purchased Power 738,785 659,156 923,233 881,000 880,000 0%

Materials and Supplies 404,051 1,042,761 547,526 1,526,303 1,016,606 -33%

Maintenance and Repairs 767,657 998,782 839,487 1,554,119 1,476,516 -5%

Insurance 187,845 185,684 185,741 247,579 247,579 0%

Miscellaneous 44,631 52,238 42,911 52,458 48,392 -8%


Capital Outlay 2,277,346 3,289,035 2,612,465 4,385,380 4,424,398 1%

Return on Investment 587,777 641,480 630,059 874,564 891,116 2%

Franchise Fee 839,681 916,400 900,085 1,249,377 1,273,023 2%

Debt Service 6,781,447 5,737,302 7,309,528 7,649,736 7,637,411 0%

Transfers Out 2,358,932 2,538,552 2,571,304 3,384,735 3,287,861 -3%


Net Income (Loss) 1,505,536$ 412,371$ 2,276,234$ 14,046 6,073,448


and Reserves 9,617,377$ 17,136,745$

1 The Beginning Working Capital and Reserves excludes Fund Balance from the Impact Fee Reserve Fund of $2,959,984,

$1,000,000 of Development Plan Line Reserves, and $1,000,000 of Drainage Reserves.


18

City of Denton

Drainage Operations




DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET PROJECTION PROJECTION

REVENUES:

Residential Drainage Fees 1,245,720$ 1,222,702$ 1,285,657$ 1,636,150$ 1,654,342$ 1%

Nonresidential Drainage Fees 2,141,189 2,098,177 2,073,927 2,809,572 2,812,936 0%

Wastewater Resources 75,000 - - - - 0%

General Fund Transfer 384,773 405,116 375,416 540,155 540,155 0%

Total Revenues 3,846,682 3,725,995 3,735,000 4,985,877 5,007,433 0%

EXPENDITURES:


Materials and Supplies 28,391 49,952 42,965 88,096 82,775 -6%

Maintenance and Repairs 68,230 106,269 50,400 148,276 151,267 2%

Insurance 18,280 18,059 18,059 24,078 24,078 0%

Miscellaneous 14,154 13,840 12,448 16,000 16,000 0%

Operations, Services 370,858 418,046 364,842 599,960 610,009 2%

Capital Outlay 931,037 656,759 879,010 751,563 845,021 12%

Debt Service 835,261 712,604 753,422 950,138 948,458 0%

Transfer Out 422,897 455,440 462,370 607,252 588,381 -3%

Total Expenditures 3,846,682 3,725,995 3,735,000 4,985,877 5,007,433 0%

Net Income (Loss) -$ -$ -$ -$ -$

19

City of Denton

Solid Waste Fund




DESCRIPTION Y-T-D Y-T-D Y-T-D BUDGET2 PROJECTION PROJECTION



4,914,289$ 5,854,345$

REVENUES:

Garbage Fees - Residential 7,452,666$ 7,931,151$ 7,856,396$ 10,636,545 10,530,807 -1%

Garbage Fees - Commercial 9,494,468 10,543,307 10,354,198 14,242,150 14,057,306 -1%

Landfill Fees 3,127,999 3,560,755 3,761,724 4,822,055 5,285,074 10%

Recycling 587,813 608,510 643,374 818,125 816,313 0%

Construction 1,016 84,030 30,783 112,024 30,783 -73%

Site Operations 177,198 134,418 118,900 179,200 178,300 -1%

Other Revenue 219,808 283,486 404,444 377,931 419,259 11%

Interest Revenue 4,416 3,375 9,049 4,500 12,065 168%

Total Revenues 21,065,384 23,149,032 23,178,868 31,192,530 31,329,907 0%

EXPENDITURES:

Personal Service 6,545,867 7,761,784 6,839,540 10,362,605 10,488,137 1%

Materials and Supplies 179,853 346,160 420,134 514,063 482,000 -6%

Maintenance and Repairs 232,015 439,930 386,279 608,659 577,100 -5%

Insurance 117,884 145,709 145,684 194,245 194,245 0%

Miscellaneous 32,404 54,629 44,301 66,000 62,800 -5%


Capital Outlay 1,234,805 1,029,372 1,224,136 1,312,132 1,263,400 -4%

Debt Service 6,672,317 7,102,138 7,102,138 7,407,499 7,407,499 0%

Franchise Fee 1,018,108 1,155,291 1,156,428 1,540,179 1,565,564 2%

Landfill Closure 273,150 276,113 276,112 368,100 368,100 0%

Transfer Out 1,974,487 1,912,429 2,036,205 2,549,549 2,549,549 0%

Total Expenditures 22,158,132 25,143,565 23,770,592 31,190,615 31,139,634 0%

Net Income (Loss) (1,092,748)$ (1,994,533)$ (591,724)$ 1,915 190,273


and Reserves 4,916,204$ 6,044,618$

1 The Beginning Working Capital Reserve excludes $6,927,921 Landfill Closure/Post Closure Reserves.


20

City of Denton

Airport Fund







and Reserves as of 09/30/15 3,751,302$ 3,400,588$

OPERATING REVENUES:

Airport Ground Leases 305,135$ 434,309$ 339,655$ 579,000 431,677 -25%

FBO Commissions 158,576 276,037 113,966 368,000 190,670 -48%

Miscellaneous 31,316 41,256 48,498 55,000 75,854 38%

Total Operating Revenues 495,027 751,602 502,119 1,002,000 698,201 -30%

OPERATING EXPENDITURES:

Personal Service 400,750 476,073 445,562 634,675 634,675 0%

Materials and Supplies 43,194 37,028 12,203 48,705 48,705 0%

Maintenance and Repairs 49,516 57,349 56,975 77,113 77,113 0%

Insurance 16,019 16,772 16,768 22,358 22,358 0%

Miscellaneous 738 1,125 652 1,500 1,500 0%

Operations 168,544 170,359 125,052 227,111 225,111 -1%

Transfers Out - Operating 321,861 341,380 341,334 455,112 455,112 0%

Franchise Fee 24,750 45,735 25,106 60,970 60,970 0%

Total Operating Expenses 1,025,372 1,145,821 1,023,652 1,527,544 1,525,544 0%

Operating (Loss) (530,345) (394,219) (521,533) (525,544) (827,343)

NON-OPERATING REVENUES:


Gas Well Royalties 359,151 698,343 254,653 931,000 496,669 -47%

Total Non-Operating Revenues 377,866 717,096 274,373 956,000 522,220 -45%

NON-OPERATING EXPENDITURES:

Debt Service 449,133 445,978 445,978 481,356 475,790 -1%

Transfers Out - Capital 1,238,911 450,060 169,835 600,000 169,835 -72%

Total Non-Operating Expenses 1,688,044 896,038 615,813 1,081,356 645,625 -40%

Non-Operating Income (Loss) (1,310,178) (178,942) (341,440) (125,356) (123,405)

Net Income (Loss) (1,840,523)$ (573,161)$ (862,973)$ (650,900) (950,748)

Ending Working Capital 3,100,402$ 2,449,840$

1 Annual adopted budget as amended or modified. Beginning Working Capital and Reserves represents the amount which was estimated in the FY 2015-16 budget process.

21

City of Denton

Street Improvement Fund

Schedule of Expenditures - Budget vs Actual(Unaudited)





Beginning Fund Balance

as of 9/30/2015 1,019,023$ 1,388,223$

RESOURCES:

Franchise Fees 5,906,774$ 7,474,933$ 6,319,987$ 9,965,248 9,965,248 0%

Street Cuts 210,516 262,535 160,132 350,000 350,000 0%


Transfers In 406,281 592,711 796,065 790,175 864,752 9%

Miscellaneous 1,080

Total Resources 6,528,328 8,337,680 7,289,771 11,115,423 11,198,116 1%

EXPENDITURES:

Personal Service 1,716,281 2,176,185 1,739,537 2,794,903 2,794,903 0%

Materials and Supplies 35,133 61,622 81,572 82,150 82,150 0%

Maintenance and Repairs 2,573,855 5,156,227 2,397,872 6,994,545 7,027,947 0%

Insurance 41,643 37,818 37,813 50,417 50,417 0%

Miscellaneous 3,655 3,751 4,253 5,000 5,000 0%

Operations, Services 710,158 463,518 422,826 617,938 617,938 0%

Transfer Out 656,580 438,564 473,866 570,470 477,903 -16%


Net Income (Loss) 791,023$ (5)$ 2,132,032$ - 141,858

Ending Fund Balance 1,019,023$ 1,530,081$

1Annual adopted budget as amended or modified. Beginning Fund Balance represents the amount which was estimated in the FY 2015-16 budget process.

22

City of Denton

Grants

Schedule of Expenses - Budget vs Projection (Unaudited)


GRANT DESCRIPTION

EXPENDITURES

AS OF

9/30/20151CURRENT

Y-T-D

ANNUAL

BUDGET

ANNUAL

PROJECTION

BUDGET VS

PROJECTION

FY 2015-16 Budget

US Dept of HUD -

Community Development Block Grant(CDBG) 1,587,914$ 357,662$ 1,231,360$ 650,000$ 53%

US Dept of HUD -

HOME Investment Partnership Program 1,510,004 310,205 919,009 600,000 65%

Emergency Solutions Grant - 399,096 598,000 598,000 100%

Community Development 3,097,918 1,066,963 2,748,369 1,848,000 67%

TxDot Comprehensive Grant - 52,533 86,070 86,070 100%

2015 Byran Justice Assistance Grant (JAG) - 23,048 24,000 24,000 100%

2014 DFWA UASI 11,772 112,646 131,500 131,500 100%

2014-SHSP-LETPA235,800 - 55,000 - 0%

2015 UASI - - 130,000 130,000 100%

Emergency Management Performance Grant - 35,119 46,825 46,825 100%

Auto Theft Grant3 - - 267,793 - 0%

2015 Tobacco Grant - 6,900 12,000 12,000 100%

Public Safety 47,572 230,246 753,188 430,395 57%

Summer Food Grant - 9,348 200,000 200,000 100%

TxDot NW Trail Extension Grant - 26,836 1,341,617 1,341,617 100%

Parks and Recreations - 36,184 1,541,617 1,541,617 100%

Interlibrary Loan Program (ILL) - - 13,064 13,064 100%

Farmers Market Grant 14,453 16,420 50,000 50,000 100%

TxDot US380 - I35 Traffic Signals Grant - 102,211 102,211 102,211 100%

Texas Emission Reduction Plan Rebate Grant - - 112,667 112,667 100%

Texas Historical Commission2 10,370 - 10,370 - 0%

Airport Maintenance (RAMP) Grant - 13,211 50,000 50,000 100%

Other 24,823 131,842 338,312 327,942 97%

Total FY 2015-16 Budget 3,170,313 1,465,235 5,381,486 4,147,954 77%

New Awards

Amy Young Barrier Removal Program - 39,977 88,000 88,000 100%

Emergency Solutions Grant additional award 29,505 1,279 5,222 5,222 100%

Community Development 29,505 41,256 93,222 93,222 100%

2015 SHSP - - 2,352 2,352 100%

Public Safety - - 2,352 2,352 100%

TxDot US380 - Traffic Signals Grant - 79,962 235,806 235,806 100%

Other - 79,962 235,806 235,806 100%

Total New Awards 29,505 121,218 331,380 331,380 100%

TOTALS 3,199,818$ 1,586,453$ 5,712,866$ 4,479,334$ 78%

1A portion of the grants presented cover multiple years.

2The fund was spent and the grant had finished in the 4th quarter, 2015.

3This grant was turned down by the Police Department.

23

24

Section 3


June 2016

REVENUE & ECONOMIC ANALYSIS

25

Revenue & Economic Analysis Summary

The data included in this section provides information on local, state and national trends impacting the City’s financial position. The following notes are provided to facilitate this section’s readability. 1. Positive Outlook – Represents favorable conditions for the local

economy. Color code – Green.

2. Cautious Outlook – Represents changing conditions that require close monitoring. Color code – Yellow.

3. Negative Outlook – Represents unfavorable conditions for the local economy. Color code – Red.

The data included in this section have been obtained from a variety of sources. Sales tax and construction related data have been obtained from internal city departments. Economic data for the State have been obtained from the Federal Reserve Bank of Dallas and may be subject to availability. National economic data were compiled with assistance from the City’s investment advisor, First Southwest Asset Management.

26

National Economic Trends Period ending June 30, 2016 Gross Domestic Product (GDP)

The initial measure of U.S. second quarter GDP was a disappointment, increasing at just a +1.2% annualized growth rate, less than half of the median forecast. The consumer spending contribution to GDP was very solid, but business spending, government spending, residential spending (housing) and in particular, unexpectedly slow inventory accumulation were a drag on growth. On a positive note, the negative inventory contribution will likely reverse itself in future quarters as lean inventories rebuild. The first quarter of 2016 was revised downward from a +1.1% annualized pace to just +0.8%. As a result, economic growth so far in 2016 appears to have slowed significantly. The annual pace for the first six months of the year is now around +1.0%, well below the +2.1% annual growth rate during the seven-year recovery cycle and a long way from the +3.3% average since WWII.

Nonfarm Payrolls

The labor market has been wildly uneven in recent months, further complicating Fed efforts to tighten monetary policy. Nonfarm payrolls rose by just +11k in May, before surging +287k in June. The average for the second quarter was a mediocre +147k. By contrast, job growth averaged +229k per month in 2015. The unemployment rate dropped to an 8½-year low of +4.7% in May as huge numbers of American workers exited the labor force, before rising to +4.9% in June after the labor force numbers reversed. The most recent JOLT (job openings and labor turnover) survey showed a record 5.8 million job openings in April and the fewest number of unemployed workers competing for open jobs in 15 years. Although the JOLT numbers retreated in May, the number of posted openings indicated solid demand by U.S. companies. Quality of jobs continues to be an issue.

27

Housing

Housing starts rose +4.8% in June to a 1,189k annual pace, while building permits increased by +1.5% to an annual pace of 1,153k. Building permits were actually down a fraction from the previous quarter, while housing starts were up by a marginal amount. Despite mortgage lending rates again approaching record lows, the housing market may be losing some of its upward momentum. Existing home sales rose +1.1% in June to an annualized pace of 5.57 mm units. It was the fourth straight month that a post-recession high had been reached. However, a spokesman for the National Association of Realtors said that the June pace would likely be high for the year due to tight supply and rising home prices. New homes sales rose +3.5% in June to an annual rate of 592k, the highest since February 2008.

Retail Sales

Headline consumer spending rebounded nicely in the second quarter. Since consumer spending accounts for roughly 2/3rds of U.S. economic growth, the increased spending indicates improved GDP. April retail sales rose +1.2%, well above the +0.8% forecasted growth and a sharp rebound from the -0.3% drop recorded in March. The retail sales “control group,” (used to calculate GDP), increased by +0.9% in April, far exceeding the +0.4% median forecast. May sales weren’t nearly as impressive, but were still positive with a +0.2% gain. The control group rose by a solid +0.5%. June sales rose by +0.6% with the control group rising +0.5%. Annualized retail sales were up +5.9% in Q2 compared to -0.2% in Q1. Household wealth reached a record high of $88.1 trillion in the first quarter, due primarily to rising residential real estate values. Seven years ago, at the recession low point, household net worth was $55 trillion.

28

Texas Home Sales Texas home sales continue to moderate. The +4.6% second quarter year-over-year advance was down from the +7.3% revised year-over-year gain in Q1 2016. The average home price in Texas climbed +3.7% YOY to a new record high of $274,416 while available supply rose to 3.7 months as builders and home sellers took advantage of favorable spring weather to add inventory. In Denton County during the second quarter, unit home sales rose +2.3% over the same period a year ago. The average sales price in June rose by +11.7% from 12 months earlier to $336,604, while the median sales price rose +9.7% to $282,055. Both prices are new record highs for Denton County. Total listings for Denton County are currently at 2,691 units or a lean 2.2 month supply.

The paper was prepared by FirstSouthwest Asset Management, is intended for educational and informational purposes only and does not constitute legal

or investment advice, nor is it an offer or a solicitation of an offer to buy or sell any investment or other specific product. Information provided in this

paper was obtained from sources that are believed to be reliable; however, it is not guaranteed to be correct, complete, or current, and is not intended to imply or establish standards of care applicable to any attorney or advisor in any particular circumstances. The statements within constitute the views of

FirstSouthwest Asset Management as of the date of the report and may differ from the views of other divisions/departments of Hilltop Securities. In

addition, the views are subject to change without notice. This paper represents historical information only and is not an indication of future performance.

29

Fuel Prices Outlook Cautious

Description: Quarterly fuel trends for the United States and Texas.

Analysis: Fuel prices are a major commodity source in the economy. Studies have shown a positive effect on

disposable income levels when fuel prices decrease. It is estimated that for every penny decrease in the price of

fuel, $1.3 billion is available to the consumer for disposable income. Therefore, the price of fuel is likely to be a key

predictor of sales tax collections. Fuel prices showed a 19.4% increase from the prior quarter at the national level

and a 19.3% increase at the state level. Staff has rated this outlook as Cautious.

Source: U.S. Department of Energy

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

$10

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

3Q '12 1Q '13 3Q '13 1Q '14 3Q '14 1Q '15 3Q '15 1Q '16 3Q '16M

illio

ns

Do

llars

Fuel Prices

Sales Tax Texas Fuel Prices US Fuel Prices

30

Municipal Cost Index Outlook Cautious

Description: The Municipal Cost Index was developed to show the rate of inflation for the cost of goods purchased

frequently by local governments. The MCI draws on the monthly statistical data collected by the U.S. Departments

of Commerce and Labor as well as independently compiled data to project a composite cost picture for the

municipal budget officer or operating department manager. Costs of labor, materials and contract services are all

factored into the composite MCI. Major indicators of these items used for the MCI include the Consumer Price

Index, the Wholesale Price Index for Industrial Commodities (now known as the Producer Price Index) and the

construction cost indexes published by the U.S. Department of Commerce, respectively.

Analysis: The Municipal Cost Index (MCI) pulls a variety of prices for frequently purchased commodities for local

governments. The cost for labor, materials and contract services are factored for the MCI. An increase in MCI

means the overall price mix for these types of commodities will cost local governments more to do routine business.

The 3rd fiscal quarter of 2016 shows an increase of 1.9% over the prior quarter and an increase of 1.2% over the 3rd

fiscal quarter of 2015. Staff has rated this indicator as Cautious.

Note: The Municipal Cost Index is designed to show the effects of inflation on the cost of providing municipal services. State

and local government officials rely on American City & County's Municipal Cost Index to stay on top of price trends, help control

price increases for commodities, make informed government contract decisions and intelligent budget planning. Since 1978,

readers have loyally referred to the Municipal Cost Index to determine the cost of inflation and, hence, the rising cost of doing

business as a local government.

Source: American City and County Magazine

229.00

230.00

231.00

232.00

233.00

234.00

235.00

236.00

3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16

Municipal Cost Index

31

Hotel Occupancy Tax Analysis Outlook Positive

3rd Quarter FY 2015-16

Actual Y-T-D

Occupancy Tax Revenue: 612,807$ 1,664,949$

FY 2015-16 Budget 600,419$ 1,574,822$

Over (Under) Budget 12,388$ 90,127$

Hotel Occupancy Tax Budget: 2,145,064$

2,256,519$

Variance: 111,455$

Description: Tax imposed on a person who, under a lease, concession, permit, right of access, license, contract, or

agreement, pays for the use of a room that is in a hotel. A hotel includes: any building in which the public may obtain

sleeping accomodations; motels; a tourist home, house or court; lodginghouse; inn; roominghouse; or bed and

breakfast. The tax rate levied by the City is 7% of the price paid for a room. The State also levies a tax equal to 6%.

Analysis: While the use of this revenue source is restricted by state law, it is an essential revenue source for various

tourist related activities within the community and an important indicator of local economic activity. Hotel Occupancy

tax revenue through the 3rd Quarter of FY 2016 was 2.1% more than budget and 1% prior year's actual. Staff has

rated the outlook for this economic indicator as Positive.

FISCAL YEAR FORECAST

End of Year Projection:

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Hotel Occupancy Tax Collections

FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16

32

Sales and Use Tax Analysis Outlook Positive

3rd Quarter FY 2015‐16Actual Y‐T‐D

Revenue: Gross Sales Tax Municipal Operations 415,007$ 1,256,428$ General Retail & Others 8,199,728 23,600,396 Comptroller Fees (160,966) (463,108) Amount Retained (157,746) (453,845) Total Revenue 8,296,023$ $23,939,871

Expenses: Economic Incentives Denton Crossing 130,297$ 418,514$ Unicorn Lake 19,933 51,931 Rayzor Ranch 288,797 908,158 Golden Triangle ‐ ‐ Total Expenses 439,027$ 1,378,603$

Net Total 7,856,996 22,561,268

FY 2015‐16 Budget 7,073,805 21,331,996

Over(Under) Budget 783,191$ 1,229,272$

Sales Tax Budget: 30,925,867$ Year End Projection: 31,879,000

Variance to Original Budget: 953,133$

Economic Development Expenditure Budget: 2,002,842$ Year End Projection: 2,002,842

Variance to Original Budget: ‐$

Description: Tax imposed on all retail sales, leases and rentals of most goods, as well as taxable services. The total taxrate levied within the City is 8.25% (State, 6.25%; City, 1.5%; DCTA, 0.5%).

Analysis: As the second largest revenue source to the City's General Fund, sales and use taxes are essential to thedelivery of services to the community. Sales tax revenues through the 3rd quarter of FY 2016 compared to revenues fromthe prior year 3rd quarter shows a 12.76% increase, and compared to the budget it is 9.68% above. There was a one timeaudit adjustment of $238,265 included in the June sales tax allocation. Staff has rated this indicator as Positive.

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

$8.0

$9.0

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Gross Sales Tax Collections (Millions)

FY 2011‐12 Actual FY 2012‐13 Actual FY 2013‐14 Actual FY 2014‐15 Actual FY 2015‐16 Actual

33

Certificates of Occupancy Outlook Cautious

Source: City of Denton's Development Services Department.

Description: Certificates of Occupancy (CO) are permits issued in compliance with the 2009 International Building

Code (IBC) and applicable City ordinances. The IBC states, "that no building shall be used or occupied, and no change

in the existing occupancy classification of a building or structure or portion thereof shall be made, until the building

official has issued a certificate of occupancy.." Certificates of Occupancy ensure that applicable building, fire and

consumer health codes are met.

Analysis: Certificates of Occupancy are an economic indicator that provides a framework for the overall condition of

the local economy. Certificates of Occupancy decreased 8.6% from the prior quarter and decreased 28.3% from the

3rd quarter of 2015. Staff has rated the outlook for this revenue indicator as Cautious.

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

3Q'11

4Q'11

1Q'12

2Q'12

3Q'12

4Q'12

1Q'13

2Q'13

3Q'13

4Q'13

1Q'14

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

4Q'15

1Q'16

2Q'16

3Q'16

Certificates of Occupancy

34

Residential Permits Outlook Cautious

Source: City of Denton's Development Services Department.

Description: Residential Permits are issued in compliance with the 2009 International Residential Code (IRC) and

applicable City ordinances. The data presented in this analysis only include new permits issued and not

remodels/alterations.

Analysis: Residential Permits are an economic indicator that provides a framework for the overall condition of the

local economy. In particular, residential permits have a direct correlation with building inspection fees and

appraised values. Residential permits increased 23.9% from the prior quarter and decreased 31.7% from the 3rd

Quarter of 2015. Staff has rated the outlook for this revenue indicator as Cautious.

0.0

50.0

100.0

150.0

200.0

250.0

3Q'11

4Q'11

1Q'12

2Q'12

3Q'12

4Q'12

1Q'13

2Q'13

3Q'13

4Q'13

1Q'14

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

4Q'15

1Q'16

2Q'16

3Q'16

Residential Permits

35

Texas Leading Indicators Index Outlook Cautious

Source: Federal Reserve Bank of Dallas

Description: The Texas Leading Indicators Index is a single weighted summary statistic that sheds light on the future

of the state's economy. The index is designed to signal movements and changes in the state's rate of growth. The

index includes the following leading indicators: Texas Value of the Dollar, U.S. Leading Index, Real Oil Prices, Well

Permits, Initial Claims for Unemployment Insurance, Texas Stock Index, Help-Wanted Advertising, and Average

Weekly Hours Worked in Manufacturing.

Analysis: Texas Leading Indicators provide a framework for the overall condition of the local economy. Data for this

quarter shows a slow down in the state's rate of growth. The index increased 1.5% from the prior quarter and

decreased 2.4% from the 3rd quarter of 2015. Staff has rated this indicator as Cautious

100.0

105.0

110.0

115.0

120.0

125.0

130.0

135.0

140.0

3Q'06

1Q'07

3Q'07

1Q'08

3Q'08

1Q'09

3Q'09

1Q'10

3Q'10

1Q'11

3Q'11

1Q'12

3Q'12

1Q'13

3Q'13

1Q'14

3Q'14

1Q'15

3Q'15

1Q'16

3Q'16

Texas Leading Indicators Index

36

Unemployment Rate Index Outlook Positive

Description: Unemployment is defined as the number or proportion of people looking for work at the prevailing

wage who are unable to find employment.

Analysis: Unemployment is an economic indicator that provides a framework for the overall condition of the

national, state and local economies. The unemployment rate for the City of Denton is at 3.1% for the 3rd quarter.

The unemployment rates for most of the other reported sectors were either down or flat from the prior quarter,

except for the Texas. As a result of the downward trend since the high of the 1st Quarter of 2010, staff has rated the

outlook for this revenue indicator as Positive.

Note: U6 unemployment includes marginally attached workers who currently are neither working nor looking for work but

indicate that they want and are available for a job and have looked for work sometime in the recent past. Discouraged

workers, a subset of the marginally attached, have given a job-market related reason for not looking currently for a job.

Persons employed part-time for economic reasons are those who want and are available for full-time work but have had to

settle for a part-time schedule.

Source: Federal Reserve Bank of Dallas, U.S. Bureau of Labor Statistics, and Texas Workforce Commission

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

3Q '10 1Q '11 3Q '11 1Q '12 3Q '12 1Q '13 3Q '13 1Q '14 3Q '14 1Q '15 3Q '15 1Q '16 3Q '16

Unemployment Rate Index

Dallas-Plano-Irving MD Denton Texas U6 Unemployment United States

37

38

Section 4


June 2016

INVESTMENT REPORT

39

3rd Fiscal Quarter 2016 - June 30, 2016 Page 1

INVESTMENT POOL

Policy

Par Market Book Unrealized Max. Benchmark

Portfolio: Value Value Value Gain/(Loss)1

WAM WAM YTM Yield*

Investment Pool 566,462,665$ 567,791,680$ 567,050,409$ 741,271$ 298 550 0.81% 0.49%

*Twelve month moving average of a one year

U.S. T-bill yield

% of Total

Par Market Book Unrealized Portfolio Policy

Securities By Investment Type: Value Value Value Gain/(Loss)1

WAM YTM (Book Value) Max.

U.S. Treasuries 39,000,000 39,145,852 38,950,670 195,182 382 0.89% 6.87% 100.00%U.S. Federal Agencies 207,000,000 207,812,029 207,380,566 431,463 378 0.78% 36.57% 100.00%Municipal Bonds 24,060,000 24,570,794 24,465,943 104,851 479 0.97% 4.31% 15.00%Certificates of Deposit 155,000,000 155,000,000 155,000,000 - 377 1.09% 27.34% 35.00%Commercial Paper 25,000,000 24,860,340 24,850,565 9,775 216 1.03% 4.38% 5.00%Local Government Investment Pools 90,000,000 90,000,000 90,000,000 - 1 0.39% 15.87% 50.00%Demand Deposits 26,402,665 26,402,665 26,402,665 - 1 0.35% 4.66% -Total Portfolio 566,462,665$ 567,791,680$ 567,050,409$ 741,271$ 298 0.81% 100.00% -

Current 3 Months Ago 3 Month 1 Year Ago

Investment Pool Comparisons: 6/30/2016 3/31/2016 Difference 6/30/2015

Par Value 566,462,665$ 472,581,468$ 93,881,197$ 536,569,150$ Market Value 567,791,680$ 473,932,356$ 93,859,324$ 537,910,259$ Book Value 567,050,409$ 473,474,456$ 93,575,953$ 537,527,645$ Unrealized Gain(Loss) 741,271$ 457,900$ 283,371$ 382,614$ Weighted Average Maturity 298 335 (37) 345Yield to Maturity 0.81% 0.79% 0.02% 0.57%

Portfolio Composition:

U.S. Treasuries 6.87% 8.23% -1.36% 4.11%U.S. Federal Agencies 36.57% 45.30% -8.73% 45.84%Municipal Bonds 4.31% 4.45% -0.14% 6.57%Certificates of Deposit 27.34% 28.73% -1.39% 22.88%Commercial Paper 4.38% 2.10% 2.28% 2.97%

Local Government Investment Pools 15.87% 4.22% 11.65% 0.00%

Demand Deposits 4.66% 6.97% -2.31% 17.63%

Bank Collateral Review**: Institution Collateral Type Market Value Collected Balance Collateral Ratio

Wells Fargo Demand Deposits BNY Mellon U.S. Agency MBS 156,210,001$ 26,281,693$ 594.37%Comerica Bank Certificates of Deposit Federal Reserve U.S. Agency MBS 48,987,614$ 18,312,645$ 267.51%LegacyTexas Bank Certificates of Deposit*** Fed Home Loan Bank Standby LOC 43,675,000$ 42,281,875$ 103.29%Independent Bank Certificates of Deposit Fed Home Loan Bank Standby LOC 34,500,000$ 33,272,840$ 103.69%**Does not include FDIC insurance

***Formerly, ViewPoint Bank

Depository Ledger Balance Review: Institution Account Type Beginning Bal. Deposits Ending Bal.

Wells Fargo Bank Checking 20,549,482$ 175,416,963$ 26,402,665$

Compliance Statement & Review:

Assistant Director of Finance Treasury Administrator

(169,563,780)$

Director of Finance

Reviewer: Chuck Springer, CGFO Reviewer: Bryan Langley, CGFOAssistant City Manager & CFO

Withdrawals

The Quarterly Investment Report is in full compliance with the objectives, restrictions, and strategies as set forth in the City of Denton's InvestmentPolicy and the Public Funds Investment Act (Texas Government Code, Chapter 2256.023).

Reviewer: Antonio Puente, Jr., CGFO Preparer: Caroline Finley

-9.27%

4.46%

> 110%

-12.97%

Pledge Required

1.41%

> 102%

> 100%> 100%

15.87%

(47) 0.24%

-2.26%

29,881,421$ 29,522,764$

358,657$

2.76%

CITY OF DENTON : QUARTERLY INVESTMENT REPORT

1 Year Ago

Difference

29,893,515$

1Unrealized gain/(loss) is the difference between the market and book value and does not represent an actual gain or loss. Gains and losses arerealized only when a security is sold prior to maturity. Since it is the City's practice to hold investments until they mature, the temporary gains andlosses are unlikely to be realized.

40


INVESTMENT POOL

Current 3 Months Ago 3 Month 1 Year Ago 1 Year

6/30/2016 3/31/2016 Difference 6/30/2015 Difference

Par Value - U.S. Treasuries 39,000,000$ 39,000,000$ -$ 22,000,000$ 17,000,000$ Par Value - U.S. Federal Agencies 207,000,000 214,000,000 (7,000,000) 246,000,000 (39,000,000)

Par Value - Municipal Bonds 24,060,000 20,560,000 3,500,000 34,785,000 (10,725,000)

Certificates of Deposit 155,000,000 136,000,000 19,000,000 123,000,000 32,000,000

Par Value - Commercial Paper 25,000,000 10,000,000 15,000,000 16,000,000 9,000,000

Local Government Investment Pools 90,000,000 20,000,000 70,000,000 - 90,000,000

Demand Deposits 26,402,665 33,021,468 (6,618,803) 94,784,150 (68,381,485)

Total Par Value 566,462,665$ 472,581,468$ 93,881,197$ 536,569,150$ 29,893,515$

Market Value - U.S. Treasuries 39,145,852$ 39,117,890$ 27,962$ 22,119,297$ 17,026,555$ Market Value - U.S. Federal Agencies 207,812,029 214,725,312 (6,913,283) 246,707,739 (38,895,710)

Market Value - Municipal Bonds 24,570,794 21,095,421 3,475,373 35,337,432 (10,766,638)


Market Value - Commercial Paper 24,860,340 9,972,265 14,888,075 15,961,641 8,898,699


Demand Deposits 26,402,665 33,021,468 (6,618,803) 94,784,150 (68,381,485)

Total Market Value 567,791,680$ 473,932,356$ 93,859,324$ 537,910,259$ 29,881,421$

Book Value - U.S. Treasuries 38,950,670$ 38,957,762$ (7,092)$ 22,068,261$ 16,882,409$ Book Value - U.S. Federal Agencies 207,380,566 214,472,294 (7,091,728) 246,403,834 (39,023,268)

Book Value - Municipal Bonds 24,465,943 21,056,511 3,409,432 35,318,681 (10,852,738)


Book Value - Commercial Paper 24,850,565 9,966,421 14,884,144 15,952,719 8,897,846


Demand Deposits 26,402,665 33,021,468 (6,618,803) 94,784,150 (68,381,485)

Total Book Value 567,050,409$ 473,474,456$ 93,575,953$ 537,527,645$ 29,522,764$

Accrued Interest 2,447,697$ 1,953,135$ 494,562$ 1,569,501$ 878,196$

Cash Value - 570,239,377$ 475,885,491$ 94,353,886$ 539,479,760$ 30,759,617$ (Total Market Value + Accrued Interest)

Unrealized Gain/(Loss) 741,271$ 457,900$ 283,371$ 382,614$ 358,657$

Change in Fair Value since 9/30/15 - (595,135)$ (679,969)$ 84,834$ (906,881)$ 311,746$

(GASB 31)

Strategy Statement: The investment pool is an aggregation of the majority of City funds which may include tax receipts, enterprise fund revenues, fine and feerevenues, reserve funds for outstanding utility system revenue bonds, as well as some, but not necessarily all bond proceeds, grants, gifts andendowments. This portfolio is maintained to meet anticipated daily cash needs for the City's operations, capital projects and debt service. Inorder to meet these obligations and to minimize potential liquidation losses, the dollar-weighted stated average maturity of the investment poolshall not exceed 1.5 years or 550 days. The objectives of this portfolio are to: (1) ensure safety of principal by investing in only high qualitysecurities for which a strong secondary market exists; (2) ensure that anticipated cash flow needs are matched with adequate investmentliquidity; (3) limit market and credit risk through diversification; and (4) attain the best feasible yield commensurate with the objectives andrestrictions set forth in the Investment Policy by actively managing the portfolio to meet or exceed the twelve month moving average yield of aone year U.S. Treasury bill as derived from the Federal Reserve Statistical Release H.15 for constant maturities.


41


INVESTMENT POOL

Current 3 Months Ago 1 Year Ago

Summary By Security Type: 6/30/2016 3/31/2016 6/30/2015

U.S. Treasuries - Coupon 38,950,670$ 38,957,762$ 22,068,261$

U.S. Federal Agencies - Coupon 188,380,074 205,472,294 232,407,992

U.S. Federal Agencies - Callable 19,000,492 9,000,000 13,995,842

Municipal Bonds - Coupon 24,465,943 21,056,511 35,318,681

Certificates of Deposit - CDARS 62,000,000 55,000,000 65,000,000

Certificates of Deposit - Collateralized 18,000,000 23,000,000 35,000,000

Certificates of Deposit - SLOC 75,000,000 58,000,000 23,000,000

Commercial Paper - Discount 24,850,565 9,966,421 15,952,719

Local Government Investment Pools 90,000,000 20,000,000 -

Demand Deposits 26,402,665 33,021,468 94,784,150 Total Book Value 567,050,409$ 473,474,456$ 537,527,645$

Objective:


Summary By Security Type: 6/30/2016 3/31/2016 6/30/2015

U.S. Treasuries - Coupon 6.87% 8.23% 4.11%

U.S. Federal Agencies - Coupon 33.22% 43.40% 43.24%

U.S. Federal Agencies - Callable 3.35% 1.90% 2.60%

Municipal Bonds - Coupon 4.31% 4.45% 6.57%

Certificates of Deposit - CDARS 10.93% 11.62% 12.09%

Certificates of Deposit - Collateralized 3.18% 4.86% 6.51%

Certificates of Deposit - SLOC 13.23% 12.25% 4.28%

Commercial Paper - Discount 4.38% 2.10% 2.97%

Local Government Investment Pools 15.87% 4.22% 0.00%

Demand Deposits 4.66% 6.97% 17.63%

Total 100.00% 100.00% 100.00%


The portfolio is restricted to U.S. Treasuries and agency securities (maturing in less than five years); state and locally issued Texas municipal bondsrated AA or better (maturing in less than three years); insured, collateralized, or standby letter of credit backed certificates of deposit (maturing in lessthan three years); collateralized repurchase agreements (maturing in less than thirty days); commercial paper rated A-1/P-1 or better (maturing in lessthan 270 days); and local government pools & SEC registered money market mutual funds (weighted average maturity of less than 60 days).

U.S. Treasuries - Coupon6.87%

U.S. Federal Agencies -Coupon33.22%

U.S. Federal Agencies -Callable3.35%

Municipal Bonds - Coupon4.31%

Certificates of Deposit -CDARS10.93%

Certificates of Deposit -Collateralized

3.18%

Certificates of Deposit -SLOC

13.23%

Commercial Paper -Discount

4.38%Local Government Investment Pools

15.87%

Demand Deposits4.66%

Current6/30/2016

42


INVESTMENT POOL


Summary By Issuer: 6/30/2016 3/31/2016 6/30/2015

CDARS CDs 62,000,000$ 55,000,000$ 65,000,000$ COMERICA BANK CDs 18,000,000 23,000,000 35,000,000LEGACYTEXAS BANK CDs* 42,000,000 25,000,000 10,000,000 INDEPENDENT BANK CDs 33,000,000 33,000,000 13,000,000 U.S. TREASURY 38,950,670 38,957,762 22,068,261

FFCB 27,010,457 10,007,026 14,990,244

FHLB 68,054,210 76,060,489 95,033,292

FHLMC 62,317,229 68,383,428 64,090,782

FNMA 49,998,670 60,021,351 72,289,515

TEXAS A&M UNIV REV BDS 8,519,587 5,024,483 5,039,174

WILLIAMSON COUNTY, TX GEN OBG BDS 1,642,594 1,655,689 1,694,976

GARLAND, TX GENERAL OBG BONDS - - 3,090,347

LUBBOCK, TX GO REFUNDING BDS 3,306,855 3,307,912 -

UNIVERSITY OF HOUSTON, TX REV BDS 5,176,094 5,203,231 -

MCKINNEY, TX GENERAL OBG BONDS 1,220,708 1,229,777 -

TEXAS SCHOOL DIST GEN OBG BONDS** 4,600,105 4,635,419 25,494,185

JP MORGAN SECURITIES LLC 24,850,565 9,966,421 15,952,719

TEXSTAR 90,000,000 20,000,000 -

WELLS FARGO DEMAND DEPOSITS 26,402,665 33,021,468 94,784,150Total Book Value 567,050,409$ 473,474,456$ 537,527,645$

Objective:


Summary By Issuer: 6/30/2016 3/31/2016 6/30/2015

CDARS CDs 10.93% 11.62% 12.09%COMERICA BANK CDs 3.18% 4.86% 6.51%LEGACYTEXAS BANK CDs* 7.41% 5.28% 1.86%INDEPENDENT BANK CDs 5.82% 6.97% 2.42%U.S. TREASURY 6.87% 8.23% 4.11%FFCB 4.76% 2.12% 2.79%

FHLB 12.00% 16.06% 17.68%

FHLMC 10.99% 14.44% 11.92%

FNMA 8.82% 12.68% 13.45%

TEXAS A&M PERM UNIV FUND REV BDS 1.50% 1.06% 0.94%

WILLIAMSON COUNTY, TX GEN OBG BDS 0.29% 0.35% 0.32%

GARLAND, TX GENERAL OBG BONDS 0.00% 0.00% 0.57%

LUBBOCK, TX GO REFUNDING BDS 0.58% 0.70% 0.00%

UNIVERSITY OF HOUSTON, TX REV BDS 0.91% 1.10% 0.00%

MCKINNEY, TX GENERAL OBG BONDS 0.22% 0.26% 0.00%

TEXAS SCHOOL DIST GEN OBG BONDS** 0.81% 0.98% 4.74%

JP MORGAN SECURITIES LLC 4.38% 2.10% 2.97%

TEXSTAR 15.87% 4.22% 0.00%

WELLS FARGO DEMAND DEPOSITS 4.66% 6.97% 17.63%

Total 100.00% 100.00% 100.00%

*Formerly, ViewPoint Bank

**Individual issuers are listed on the

attached Portfolio Details Report


It is the policy of the City to diversify its investment portfolio by restricting investments in a single issuer/institution to no more than 35 percent of the portfolio's total book value and tothose offering repurchase agreements, collateralized CDs (including standby letters of credit), and local or state of Texas municipal securities to no greater than 15 percent. Thepurpose of this requirement is to limit market and credit risk. Commercial paper issuers are further restricted by a 5 percent total portfolio limitation. There are no issuer limitationson U.S. Treasuries or FDIC insured products except as they pertain to the overall 35% certificates of deposit restriction.

CDARS CDs, 10.93%

COMERICA BANK CDs, 3.18%

LEGACYTEXAS BANK CDs, 7.41%

INDEPENDENT BANK CDs, 5.82%

U.S. TREASURY, 6.87%

FFCB, 4.76%

FHLB, 12.00%FHLMC, 10.99%

FNMA, 8.82%

TEXAS A&M PERM UNIV FUND REV BDS, 1.50%

WILLIAMSON COUNTY, TX GEN OBG BDS, 0.29%

LUBBOCK, TX GO REFUNDING BDS, 0.58%

UNIVERSITY OF HOUSTON, TX REV BDS, 0.91%

MCKINNEY, TX GENERAL OBG BONDS, 0.22%

TEXAS SCHOOL DIST GEN OBG BONDS, 0.81%

JP MORGAN SECURITIES LLC, 4.38%

TEXSTAR, 15.87%

WF DEMAND DEPOSITS, 4.66%

Current6/30/2016

43


INVESTMENT POOL


Maturity Time Frame: 6/30/2016 3/31/2016 6/30/2015

00-03 Months 160,402,665$ 102,021,468$ 131,159,150$ 03-06 Months 55,000,000 44,000,000 50,000,000 06-12 Months 139,200,000 131,200,000 109,210,000 12-24 Months 193,860,000 186,360,000 211,200,000 24 Months & Over 18,000,000 9,000,000 35,000,000 Total Par Value 566,462,665$ 472,581,468$ 536,569,150$

Objective:


Maturity Time Frame: 6/30/2016 3/31/2016 6/30/2015

00-03 Months 28.32% 21.59% 24.45%03-06 Months 9.71% 9.31% 9.32%06-12 Months 24.57% 27.76% 20.35%12-24 Months 34.22% 39.43% 39.36%24 Months & Over 3.18% 1.91% 6.52%Total 100.00% 100.00% 100.00%


The risk of market price volatility is minimized through maturity diversification. Investment maturities are staggered to provide cash flowbased on the anticipated needs of the City. Liquidity is achieved by matching investment maturities with forecasted cash disbursementsand by investing in securities with active secondary markets. Short-term local government investment pools and money market mutualfunds help to provide daily liquidity and may be utilized as a competitive alternative to fixed income investments.

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

$450,000,000

$500,000,000

$550,000,000

$600,000,000


00-06 Months 06-12 Months 12-24 Months 24 Months & Over

44


ECONOMIC SUMMARY

Interest Rate History

Source: U.S. Federal Reserve Statistical Release (H.15)

Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13

Market Sector: Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg

Fed Funds (effective) 0.18% 0.14% 0.09% 0.08% 0.07% 0.13% 0.16% 0.14% 0.16% 0.14% 0.09% 0.08%

3-Month U.S. T-Bill 0.14% 0.10% 0.04% 0.01% 0.01% 0.08% 0.09% 0.11% 0.07% 0.09% 0.05% 0.02%

2-Year U.S. T-Note 0.62% 0.70% 0.41% 0.21% 0.26% 0.34% 0.29% 0.26% 0.26% 0.26% 0.33% 0.40%

Portfolio Benchmark* 0.32% 0.30% 0.25% 0.22% 0.18% 0.15% 0.15% 0.16% 0.18% 0.18% 0.16% 0.15%

Portfolio Yield 0.65% 0.66% 0.66% 0.62% 0.59% 0.58% 0.56% 0.55% 0.52% 0.50% 0.48% 0.49%

Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16

Market Sector: Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg Avg

Fed Funds (effective) 0.09% 0.08% 0.10% 0.09% 0.12% 0.11% 0.13% 0.14% 0.24% 0.36% 0.38%

3-Month U.S. T-Bill 0.07% 0.05% 0.04% 0.02% 0.03% 0.03% 0.02% 0.02% 0.23% 0.30% 0.27%

2-Year U.S. T-Note 0.34% 0.40% 0.45% 0.57% 0.64% 0.64% 0.69% 0.71% 0.98% 0.88% 0.73%

Portfolio Benchmark* 0.13% 0.13% 0.12% 0.12% 0.12% 0.15% 0.18% 0.24% 0.32% 0.41% 0.49%

Portfolio Yield 0.50% 0.49% 0.49% 0.51% 0.55% 0.57% 0.57% 0.65% 0.72% 0.79% 0.81%

*Twelve month moving average of a one year

U.S. T-bill yield

Fiscal Year:

2015-2016

2014-20152013-20142012-20132011-20122010-2011

QUARTERLY COMMENTARY

June 30, 2016

Source: First Southwest Asset Management Economic Summary & TexStar Monthly

Newsletter


Fiscal Year 2010-2011 Fiscal Year 2011-2012 Fiscal Year 2012-2013

The second calendar quarter was marked by both weak and strong labor reports for May and June, oil price stabilization, and theFederal Reserve (the Fed) looking increasing dovish on future rate hikes due to the mixed economic data discussed in its twomeetings. The United Kingdom's (UK) vote on June 23 to leave the European Union (EU) was a surprise and resulted in a spikeof market volatility with risk assets selling off in favor of safe havens assets which caused U.S. Treasury prices to rally across theboard and yields to fall. The Brexit vote made it increasingly unlikely that the Fed will hike U.S. short term rates in 2016. Accordingto the Bloomberg economist survey dated July 8, 2016, the median growth forecast for second quarter real GDP is 2.5%, followedby 2.2%, 2.3% and 2.1% for the next three quarters.

Fiscal Year to Date Earnings

3 Months 6 Months 9 Months 12 Months

613,879$ 568,825$ 612,750$

515,111$

1,121,491$ 1,177,337$ 1,239,869$ 1,056,309$ 1,631,563$

2,298,785$

2,216,300$

Oct - Dec Oct - Mar Oct - Jun Oct - Sep

Fiscal Year 2013-2014 Fiscal Year 2014-2015 Fiscal Year 2015-2016

621,194$

1,771,205$ 2,743,856$ 849,368$

1,228,059$ 1,874,847$ 2,695,211$ 1,680,154$ 1,703,496$ 1,862,207$

2,276,341$ 2,511,585$

0.00%

0.50%

1.00%

1.50%

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

Mar-12

Jun-12

Sep-12

Dec-12

Mar-13

Jun-13

Sep-13

Dec-13

Mar-14

Jun-14

Sep-14

Dec-14

Mar-15

Jun-15

Sep-15

Dec-15

Mar-16

Jun-16

Sep-16

Fed Funds 3-Month T-Bill 2-Year T-Note Portfolio Yield Portfolio Benchmark*

FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16

45

46

47

48

49

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Section 5


June 2016

PERFORMANCE REPORT

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The City of Denton uses a Strategic Plan as a roadmap to achieve long-term goals and objectives that capture the City’s Vision,

Mission, and Value statements. The first Strategic Plan was formally approved by the City Council in April 2011, and most recently in

June 2015, the City Council discussed adding a new goal (4.5) related to social services programs. With this change, the City Council

approved the FY 2015-16 Strategic Plan and associated performance measures on September 15, 2015.

The Strategic Plan serves as the basis for resource allocation decisions that are used in the development of the FY 2015-16 Budget.

The Strategic Plan is organized into five Key Focus Areas (KFAs) and major goals associated with each KFA are also identified below.

In addition to the above KFAs and goals, the Strategic Plan also identified a number of specific and actionable objectives for the

organization. Specific performance indicators have been developed to track the City’s progress in accomplishing the goals and

objectives identified. The performance indicators are published quarterly.

Key Focus Area 1: Organizational Excellence Goal 1.1 Manage financial resources in a responsible manner. Goal 1.2 Develop a high-performance work force. Goal 1.3 Promote effective internal and external communication. Goal 1.4 Achieve high level of customer satisfaction. Goal 1.5 Utilize technology to enhance efficiency and productivity. Goal 1.6 Collaborate with local, regional, state, and federal partners.

Key Focus Area 2: Public Infrastructure

Goal 2.1 Optimize resources to improve quality of City roadways. Goal 2.2 Seek solutions to mobility demands and enhance connectivity. Goal 2.3 Promote superior utility services and facilities. Goal 2.4 Manage drainage infrastructure. Goal 2.5 Develop Capital Improvement Program (CIP) based on community needs.

Key Focus Area 3: Economic Development

Goal 3.1 Develop targeted policies and incentives to achieve desired economic growth. Goal 3.2 Make Denton a destination for visitors. Goal 3.3 Promote a business-friendly environment. Goal 3.4 Encourage development, redevelopment, recruitment, and retention.

Key Focus Area 4: Safe, Liveable and Family Friendly Community

Goal 4.1 Enhance public safety in the community. Goal 4.2 Seek clean and healthy neighborhoods in Denton. Goal 4.3 Provide quality, diverse, and accessible neighborhood services for the community. Goal 4.4 Provide and support outstanding leisure, cultural, and educational opportunities.

Goal 4.5 Provide support to citizens in need through social service agencies and programs. Key Focus Area 5: Sustainable & Environmental Stewardship

Goal 5.1 Manage Denton’s water resources. Goal 5.2 Improve air quality and greenhouse gas management. Goal 5.3 Improve energy efficiency and conservation. Goal 5.4 Manage land use and preserve open/natural spaces. Goal 5.5 Provide alternative modes of transportation. Goal 5.6 Promote sustainable materials resource management. Goal 5.7 Encourage local food production.

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The matrix below organizes the Key Focus Areas (KFAs) by select service areas in the organization. While every

department has some level of responsibility for each KFA, the matrix is intended to only highlight the primary

departments responsible for each KFA.

SERVICE AREA KFA 1 KFA 2 KFA 3 KFA 4 KFA 5 UTILITIES Electric Water Wastewater Solid Waste INTERNAL SERVICES Technology Services Materials Management Fleet Risk NEIGHBORHOOD SERVICES Building Inspection Community Improvement Services Libraries Parks and Recreation Planning Gas Well Operations Community Development PUBLIC SAFETY Animal Services Fire Police Municipal Court TRANSPORTATION Airport Streets Traffic/Transportation ADMINISTRATIVE SERVICES City Manager’s Office Economic Development Facilities Management Finance Human Resources Internal Audit Legal Public Communications Key Focus Area 1: Organizational Excellence Key Focus Area 2: Public Infrastructure Key Focus Area 3: Economic Development Key Focus Area 4: Safe, Liveable and Family-Friendly Community Key Focus Area 5: Sustainable & Environmental Stewardship

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City of Denton, Texas Strategic Plan

Executive Summary

Key Focus Area

Number of MeasuresOn or

Above TargetNumber of Measures

Below Target

Number of MeasuresSignificantly Below Target

1) Organizational Excellence 21 2 2

2) Public Infrastructure 15 6 5

3) Economic Development 9 4 3

4) Safe, Liveable, and Family Friendly Community

24 2 7

5) Sustainable and Environmental Stewardship

12 1 1

Total 81 15 18

These measures have either reached or exceeded established goals.

The measures rated “Below Target” are within 5% of reaching established goals.

The measures rated “Significantly Below” are greater than 5% from reaching established goals.

General Overview of the 2015‐16 Strategic Plan

71%13%

16%

On or Above Target

Below Target

Significantly Below Target

* There are 5 dashboard measures where data is not yet available from departments.

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Performance Report Dashboard

Key Performance Indicators (KPIs) DepartmentFY 14‐15Actual

FY 15‐16Target

3rdQtr

FY 15‐16Year‐to‐Date

Progress Indicator

Goal 1.1 Manage financial resources in a responsible manner.

% of Invoices paid within 30 days Finance 92% 93% 91% 91%

Percentage of actual General Fund revenue as compared to budgeted revenue(1) Finance 102% 100% 101% 101%

Percentage of actual General Fund expenditures as compared to budgeted expenditures(1) Finance 99% <100% 92% 92%

Percentage rate of investment return Finance 0.51% 0.45% 0.81% 0.81%

Number of internal control or Lean Government projects implemented Internal Audit 15 12 5 10

Key Focus Area 1: Organizational Excellence

(1) Year‐to‐date and quarterly information based upon seasonal budgetary information.

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FY 15‐16Target

3rdQtr


Progress Indicator

Goal 1.2 Develop a high performance work force.

Percentage rate of employee turnover HR 10.12% <10.0% 1.84% 7.11%

Percentage of performance reviews completed within 30 days of due date HR 79% 100% 87% 84%

Number of health risk assessments performed(1) Risk Mgmt. 828 800 418 618

Percentage rate of clinic utilization based on available appointments Risk Mgmt. 92% 80% 84% 87%

Costs per $100 of payroll for workers compensation Risk Mgmt. $0.38 $0.75 $0.56 $0.77


(1) Expected during fourth quarter.

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FY 15‐16Target

3rdQtr


Progress Indicator

Goal 1.3 Promote effective internal and external communication.

Number of hits on City’s website (in millions) Pub. Comm. 1.6 1.4 0.5 1.3

Number of followers on all social media sites Pub. Comm. 109,282 100,000 134,456 134,456

YouTube audience retention DTV * 58% 58% 58%

Number of YouTube subscribers DTV * 400 515 515


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FY 15‐16Target

3rdQtr


Progress Indicator

Goal 1.4 Achieve high level of customer satisfaction

Average number of days from specifications to award for standard purchases

MaterialsMgmt. 68 70 65 67

Percentage of contracts reviewed within five days Legal 100% 100% 100% 100%

Percentage of new commercial permits reviewed within 10 days

BuildingInspections 62% 95% 68% 77%

Percentage of fleet available Fleet 97% 95% 94% 95%

Percentage of first‐contact resolution for customers

CustomerService 93% 85% 93% 93%

Average time in seconds to answer calls (in seconds)

CustomerService 91 60 26 25


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FY 15‐16Target

3rdQtr


Progress Indicator

Goal 1.5 Utilize technology to enhance efficiency and productivity.

Percentage of employees that rate IT services as good or better

TechnologyServices 99% 98% 99% 99%

Percentage of work requests completed within five days

TechnologyServices 99% 95% 99% 99%

Percentage of payment transactions completed electronically

Customer Service 56% 55% 61% 60%

Percentage of customers that receive electronic billing statements

Customer Service 12% 12% 15% 15%

Goal 1.6 Collaborate with local, regional, state, and federal partners.

Number of City personnel, elected, and appointed officials serving in a leadership roles in regional, state, and federal associations

City Manager’sOffice

45 45 45 45


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FY 15‐16Target

3rdQtr


Progress Indicator

Goal 2.1 Optimize resources to improve quality of City roadways.

Number of traffic signs serviced Traffic 2,974 2,500 270 1,390

Number of traffic signals serviced Traffic 992 1,440 278 690

Feet of lane markings replaced (1) Traffic 238,244 225,000 92,849 167,253

Square yards of asphalt roadway reconstructed(2) Streets 42,882 112,736 14,765 39,133

Square yards of asphalt roadway overlaid (2) Streets 45,574 86,956 10,244 30,567

Square yards of asphalt roadway micro‐sealed (1) Streets 72,468 114,285 201,585 201,585

Goal 2.2 Seek solutions to mobility demands and enhance connectivity.

Number of airport takeoffs/landings (1) Airport 165,454 164,000 34,146 104,198

Number of trail and bikeway network gaps removed (1) Transportation * 4 1 1


(2) Data only reflects projects that have been completed and closed.


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FY 15‐16Target

3rdQtr


Progress Indicator

Goal 2.2 Seek solutions to mobility demands and enhance connectivity.

Number of transit stops with improved pedestrian and bicycle access Transportation * 8 0 6

Number of sidewalk disconnects/gaps removed(1) Transportation * 4 1 1

Goal 2.3 Promote superior utility services and facilities

Number of work orders completed Facilities 14,519 13,500 3,464 9,760

Gallons of finished water produced (billion of gallons)(1) Water 6.36 7.088 1.463 4.178

Feet of water mains replaced)(1) Water 11,197 15,000 2,525 8,256

Number of valves exercised Water 4,421 4,750 840 2,561

Number of new water meters installed Water 837 550 159 499

Number of water meters replaced Water 3,357 2,200 838 3,138



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FY 15‐16Target

3rdQtr


Progress Indicator

Goal 2.3 Promote superior utility services and facilities

Gallons of wastewater treated through plant (billion of gallons) Wastewater 5.834 5.145 1.614 4.178

Feet of wastewater mains replaced (2) Wastewater 8,157 18,000 4,377 11,270

Feet of wastewater lines cleaned Wastewater 537,317 450,000 181,271 576,504

Number of annual grease trap inspections EnvironmentalServices 252 200 80 208

Percentage of electric system utilized (load factor) see note (1) Electric 48% 46% 47% 47%

Goal 2.4 Manage drainage infrastructure.

Lane miles of street sweeping completed Drainage 6,122 5,200 2,597 7,163

Cubic yards of material collected in street sweeping Drainage 3,035 4,000 540 2,485

Feet of concrete channel cleaned (2) Drainage 45,782 35,000 200 15,196


(1) % of electric system utilized (load factor) is based on a 12 month ending basis.(2) Expected during fourth quarter.

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FY 15‐16Target

3rdQtr


Progress Indicator

Goal 2.5 Develop Capital Improvement Program (CIP) based on community needs.

Number of projects in process CIP 969 850 1,088 1,088

Percentage of GO bonds issued (based on recommended packages presented to voters) CIP 26% 35% 40% 40%


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FY 15‐16Target

3rdQtr


Progress Indicator

Goal 3.1 Develop targeted policies and incentives to achieve desired economic growth.

Increase in residential and commercial property values Finance 8.54% 4% 8.38% 8.38%

Increase in owner‐occupied housing Community Development * 5% * * *

Increase in average value of new housing construction Finance 8% 5% 9% 8% *

Number of housing starts Economic Dev. 640 675 166 461

Goal 3.2 Make Denton a destination for visitors.

Denton hotel occupancy rate CVB 62% 59% 62% 64%

Number of redeveloped properties in downtown Denton Economic Dev. 17 6 9 18

Goal 3.3 Promote a business‐friendly environment.

Percentage of Certificates of Occupancyreviewed within 10 days

Building Inspections 98% 95% 97% 93%

Percentage of Tenant Finish Outs reviewed within 10 days



Performance Report DashboardKey Focus Area 3: Economic Development

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FY 15‐16Target

3rdQtr


Progress Indicator

Goal 3.3 Promote business‐friendly environment.

Percentage of pre‐applications reviewed and comments sent to the applicant by the published deadline

Planning 94% 90% 85% 85%

Percentage of Plats reviewed and comments sent to the applicant by the published deadline Planning 91% 90% 80% 80%

Percentage of Specific Use Permit applications reviewed and sent to the applicant by the published deadline

Planning 100% 90% 100% 75%

Percentage of Zoning Change applications reviewed and sent to the applicant by the published deadline

Planning 100% 90% 89% 87%

Increase Return on Investment (ROI) of incentives awarded Economic Dev. * 3:1 return 3:1

return 3:1 return

Total net sales tax collections related to Economic Dev. Incentives (in millions) Economic Dev. * $3.8 $0.9 $2.9


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FY 15‐16Target

3rdQtr


Progress Indicator

Goal 3.4 Encourage development, redevelopment, recruitment, and retention.

Overall positive rating of Denton’s business climate Economic Dev. * 60% * * *

Median family income Economic Dev. * $63,411 $69,014 $69,014

Number of business retention visits Economic Dev. 131 105 31 114

Percentage rate of unemployment Economic Dev. 3.3% 3.9% 3.2% 3.2%


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FY 15‐16Target

3rdQtr


Progress Indicator

Goal 4.1 Enhance Public Safety in the Community.

Number of stakeholder meetings conducted Police 357 200 84 193

Average number of minutes for patrol response time from dispatch to arrival on scene for priority 1 (emergency calls)

Police * 6:00 7:17 6:58

Average number of minutes for patrol response time from dispatch to arrival on scene fornon‐emergency calls Police * 10:00 9:21 8:22

Percentage of crime reports submitted through online self reporting system Police 18% 12% 18% 17%

Percentage of live animal release rate for all animals housed at the Denton Animal Shelter Police 87% 80% 73% 81%

Key Focus Area 4: Safe, Liveable, and Family Friendly Community

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FY 15‐16Target

3rdQtr


Progress Indicator

Goal 4.1 Enhance Public Safety in the Community.

Percentage of active structure fires responded to in five minutes or less Fire 46% 90% 49% 48%

Number of inspections completed for commercial /industrial / multi‐family structures Fire 4,066 4,700 1,095 3,163

Number of hours completed to enhance current training program to improve alignment with the requirements of the Texas Commission on Fire Protection and ISO

Fire 36,162 36,000 16,057 32,458

Number of cases processed Muni Court 30,279 33,000 8,015 23,405

Goal 4.2 Seek clean and healthy neighborhoods in the City of Denton.

Number of food establishments inspected Building Inspections 1,721 1,350 739 1,785


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FY 15‐16Target

3rdQtr


Progress Indicator

Goal 4.2 Seek clean and healthy neighborhoods in the City of Denton.

Percentage of food establishments with an 80 or better rating


Number of health (food handler) cards issued Building Inspections 2,693 2,000 178 761

Number of code compliance or follow‐up inspections

Building Inspections 6,087 3,000 519 2,260

Percentage of nuisance violations abated Community Imp. Services 100% 90% 100% 100%

Percentage of minimum building standardviolations abated

Community Imp. Services 98% 85% 90% 93%

Percentage of zoning violations abated Community Imp. Services 99% 85% 80% 91%

Number of dangerous buildings repaired or demolished

Community Imp. Services 23 30 2 3

Percentage of gas well drilling and production sites that passed semi‐annual inspections Gas Wells 100% 95% 100% 100%


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FY 15‐16Target

3rdQtr


Progress Indicator

Goal 4.3 Provide quality, diverse, and accessible neighborhood services for the community.

Increase in number of festival/ event

attendees(1)Parks/CVB 83,405 90,000 23,210 71,865

Increase in number of facilitated activities and programs at Clear Creek Natural Heritage Center(1)

Environ. Services * 20 6 17

Increase in participation at educational and recreation activities at Clear Creek Natural Heritage Center(1)

Environ. Services 600 5% 181 786



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FY 15‐16Target

3rdQtr


Progress Indicator


Acres of parks maintained per full‐time

equivalent Parks 50.1 52.4 50.1 50.1

Total number of attendees at park facilities per full‐time equivalent Parks 20,223 17,320 8,463 19,998

Acres of park per 1,000 population Parks 4.17 4.38 4.17 4.17

Satisfaction rating of “good” or “excellent” for

programming /number of ratings receivedParks 4.7/1,289 4.5/3,600 4.7/525 4.7/1,339

Percentage of programs offered that made participation requirements Parks 95% 94% 95% 95%

Total circulation, including checkouts and renewals of physical items Library 1,198,798 1,200,000 310,967 884,162

Number of Ebranch visits: webpage, website, mobile app, and catalog hits Library 794,324 800,000 861,996 2,440,353


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FY 15‐16Target

3rdQtr


Progress Indicator


Total Ebranch circulation database hits, electronic content download Library 105,110 90,000 30,797 180,910

Percentage of surveyed program attendees who reported they will use a skill they learned in their home, workplace, or studies Library * 80% 93% 94%

Number of individuals and/or households served through City‐supported programs Comm. Dev. * 3,500 1,949 8,925

Number of social service agencies funded Comm. Dev. * 18 0 19

Total funding amount from local, state, and federal grants that were leveraged

Comm. Dev. * $861,300 $397,229 $1,123,343


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Performance Report DashboardKey Focus Area 5: Sustainable & Environmental Stewardship


FY 15‐16Target

3rdQtr


Progress Indicator

Goal 5.1 Manage Denton’s water resources.

Gallons of sanitary overflow Wastewater 106,380 <100,000 10,860 14,065

Goal 5.2 Improve air quality and greenhouse gas management.

Percentage of alternative fuel used from total fuel consumed

Environmental Services 60% 57% 77% 76%

Number of alternative fuel vehicles Fleet 187 192 231 231

Goal 5.3 Improve energy efficiency and conservation

Decrease in municipal energy use annually Environmental Services

6% increase

5%decrease 0% 1% decrease

Percentage of Non‐Solar Energy Rebate funding used from base amount


Percentage of Solar Energy Rebate funding from base amount


Percentage of renewable energy used by City of Denton facilities


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Key Focus Area 5: Sustainable & Environmental Stewardship


FY 15‐16Target

3rdQtr


Progress Indicator

Goal 5.4 Manage land use and preserve open/ natural spaces.

Amount of Non‐upland Habitat Environmentally Sensitive Land removed from protection through Alternative Development Plans (2)

Environmental Services * 0 N/A N/A *

Amount of Upland Habitat Environmentally Sensitive Land removed from protection through Alternative Development Plans (2)

Environmental Services * 0 N/A N/A *

Percentage of approved Alternative Development Plans addressing water quality as a component of landscaping or parking (2)

Environmental Services * 100% N/A N/A *

Goal 5.5 Provide alternative modes of transportation.

Number of Bike and Pedestrian Action Plan components initiated Transportation 31 12 5 13

Total number of riders in millions on DCTA transit system (bus and A‐Train) (1) DCTA 2.4 2.687 0.447 1.855

Number of centerline miles of on‐street bike infrastructure such as bike lanes and sharrows (1) Transportation * 7 1.4 3.4

(1) Expected during fourth quarter.(2) No cases were approved meeting the matrix criteria.

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Key Focus Area 5: Sustainable & Environmental Stewardship


FY 15‐16Target

3rdQtr


Progress Indicator

Goal 5.5 Provide alternative modes of transportation.

Number of Active Transportation promotionalevents

Transportation * 10 9 16

Goal 5.6 Promote sustainable materials resource management.

Pounds of waste disposed per capita Solid Waste 2,021 1,852 447 1,273

Percentage of waste diverted from the landfill Solid Waste 35% 40% 34% 36%

Goal 5.7 Encourage local food production.

Total cumulative acres of community gardens Environmental Services 19 19 19 19

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Key Action StepsDuring the strategic planning process, staff identified several Key Action Steps to be completed over the coming fiscal year. The purpose of creating the Strategic Plan action steps or “tasks” is to:

• Link broad policy goals identified in the Strategic Plan with specific actions that are to be undertaken.

• Provide policy makers and employees with key milestones for assessing our performance.

• Establish accountability for completing the tasks in the coming year.

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Action Steps Department Target Date Status

Develop new city website and comprehensive branding strategy

Public Comm. September 2016 The Request for Proposals for the redevelopment of the website was released in January 2016. The website development contract was awarded to Imaginuity Interactive on April 26, 2016. The target date for the launch of the new site is November 2016.

Continue pursuing organizational efficiency and productivity improvements through the Lean, LEEP, and Innovation Program initiatives

City Mgr. Office Ongoing The 2nd LEEP class began in October 2015, and the City’s Innovation 2.0 program started this past fall. The LEAN program continues this year. Most recently coaches led a review of the Planning Division development review process.

Implement performance management recommendations from LEEP program

Human Resources April 2016 The phased in implementation of a new performancemanangement software system began in May 2016, for reviews due in July of 2016 (employees are notified 45 days in advance of the review being due). Staff began conducting training sessions in May, and has held them each month to educate employees on the features of the system. Staff has also been offering “hands on” sessions for those employees/supervisors who need help using the system. Staff will continue offering the training sessions and “hands on” sessions each month until all employees have completed a review in the system.


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Set financial goals for funding facility improvements and fleet replacements with cash in lieu of debt financing

Finance, Fleet October 2015 A proposal to begin cash funding of $250,000 of vehicle replacements was proposed in the FY 2015‐16 budget, but not adopted due to historically low interest rates. In the upcoming budget process staff will consider additional cash funding alternatives for facility improvements.


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Develop and begin implementation of a plan to address parking issues in the downtown area

Economic Dev.,Transportation

September 2016 A final or formalized plan has not yet been developed at this point, rather efforts have been made in the short‐term to add additional parking in the downtown area. Below are some specific actions completed in the past 12 months which were directed at increasing or improving parking options. Completed Hickory Grand Street Project which provided an additional 80 parking spots including back‐in parking; Demolition of the Old Tax Office at 300 East McKinney provided an additional 130 parking spots augmenting parking options for the Municipal Complex, Quakertown Park, and the east side of Downtown; Demolition of Old Central Station has provided 100 parking spots. In addition, directional signage for public parking has been implemented along with implementation of a mid‐block crosswalk from the 300 McKinney Parking Lot to the Municipal Complex. This provides pedestrian access across McKinney to additional parking options on either the north or south side of McKinney; The City has leased space at 215 West Hickory and 216 West Mulberry to relocate the Development Services Department. As a part of that lease agreement, the City will be able to provide an additional 210 parking spaces after office hours and on weekends for public use on the southeast side of downtown.


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Develop a plan to address current and future primary facility needs for the organization

Facilities January 2016 As part of the January 2016 Council Retreat, staff presented a proposal on advancing a Master Plan and Facilities Inventory Update to address current and future space needs at City Hall, City Hall East, City Hall West and the Service Center. Staff received direction to proceed, with the intent of completing the municipal facility study by end of Calendar Year 2016. A consultant is under contract to assist with the Facilities Master Plan Update. A needs assessment survey is currently being facilitated. Council presentation is targeted for fall 2016 to review draft Master Plan update.

Create a plan to remove or relocate dumpsters that are in the public right‐of‐way

Solid Waste, Community Improv. Services

July 2016 The first phase of this initiative has been implemented and staff has contacted customers having dumpsters infringing upon sidewalks to seek their voluntary removal. While, most of the customers have complied, staff will continue to seek ways to gain voluntary compliance or explore other methods to encourage their removal. Additionally staff continues to work with businesses in the Square District to develop a shared containers solutions to address dumpsters in the right‐of‐way. As part of the Hickory Street Reconstruction project, consolidated dumpsters with proper screening revetments were provided in the Williams Trade Square.


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Complete design and begin construction of wayfinding signage package for downtown

Economic Dev., Planning & Dev.

September 2016 The Wayfinding Signage Project is on schedule. On July 5 – 12 we received 100% Drafts of the Design Intent Drawings which includes the Gateway signs and the Message Schedule Document. Shortly after, the drafts were forwarded to stakeholders (internal and external) for their review. Both documents will be attachments in the upcoming RFP. The next step is begin the RFP process to select a sign company to fabricate and install the signs identified in Phase 1. Phase 1 consist of the fabrication and installation of the parking lot trailblazer signs, parking lot identifications signs, pedestrian directions signs, and kiosks within the Downtown area.


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Implement the economic development strategic

action agenda

Economic Dev. September 2016 Year 2 of the two‐year Strategic Action Agenda is being implemented. Major actions include: criteria for higher wage jobs; knowledge‐based, jobs and industry and supplier targets were developed and presented to Council as part of establishing the EconomicDevelopment Investment Fund; infrastructure improvements that benefited both development and permitting pilot projects were completed and reimbursed; monthly meetings with Finance have been implemented, which will aid in streamlining the Return on Investment (ROI) report; two Denton companies received a total of $1,030,248 in manufacturing skills training grants resulting from training visits; ED successfully participated in North Texas TechHirePartnership (NTTP) with NCTC for a $3,995,179 Department of Labor H‐1B TechHire Partnership Grant providing training and paid internship opportunities in Information Technology and Advanced Manufacturing for at least 450 individuals hired by NTTP partner companies; the Economic Development Partnership hosted a reception and tour for DFW site selectors/consultants on March 3; planning is underway to move preparation of Request for Proposal responses from the Chamber to the City; a customer relations management system has been requested for FY 16‐17 for use by both the Chamber and the City.


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Create a master plan for the redevelopment of the I35 corridor

Planning & Dev. September 2016 The Planning Division is in the process of researching Corridor Plans that other cities along I‐35 have done. Staff has collected information from seven cities which include copies of the Corridor Plans and cost associated with the preparation of those Plans. Staff has also started collected existing condition data using aerial photography and GIS and will begin conducting windshield surveys soon to gather more accurate information. Staff will use this information to determine the budget required and then begin the process of selecting a consultant to prepare a Corridor Plan for the I35 Corridor.

Continue implementation of the Comprehensive Plan

Planning & Dev. Ongoing The Planning Division in conjunction with the Technical Advisory Committee (TAC) is currently implementing the Denton Plan 2030. Staff and the TAC prepared an Action Plan Status Update in June that details actions taken and progress made toward plan implementation during the previous year. An Informal Staff Report regarding the Update was forwarded to the City Council on June 24, 2016 and on July 13, 2016 the Update was presented to the Planning and Zoning Commission. The Update is available for the general public to review by visiting DentonPlan2030.com.


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Assess and rewrite the Denton Development Code in order to become a more business‐friendly city, be consistent with the Denton 2030 Plan, and be more efficient and understandable

Planning & Dev. September 2016 Building on the assessment that Clarion has already completed, the Planning Division is currently in discussion with Clarion regarding a new scope of work to rewrite the Denton Development Code. The new scope will address all of the items listed in this action step. It is anticipated that a new contract with Clarion will be forwarded to City Council for their consideration by the end of September.

Complete an assessment of the development plan review process and begin implementation of suggested improvements

Planning & Dev. September 2016 A Lean government “kaizen” event was held in March 2016. Several improvements have already been implemented, including the addition of pre‐development meetings and establishment of project review teams. Full implementation of the revised process to include a formal completeness check, a site plan review process, and a standardized project review schedule is anticipated to be completed by August 2016.


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Implement ROW management recommendations from LEEP program

Community Improv. Services

January 2016 The right‐of‐way contracts were approved by Council and contracted right‐of‐way maintenance began in March of 2016. Sixteen roadways and 17 drainage ways are part of the Enhanced Right‐of‐Way Maintenance Program. This program maintains approximately 208 acres of public rights‐of‐way at an enhanced level throughout Denton. A few additional ‘hot spots’ were added to this list via resident complaint. The Municipal Maintenance Agreement with TXDOT was amended to provide $6,763.28 annually for maintenance on roadways previously maintained by TXDOT. The agreement was approved by Council in June 2016. In addition TXDOT also allocated $330K in Green Ribbon funding to re‐design and re‐landscape medians on US 380, US 77, FM 2181 and US 377. TXDOT has installed and is to maintain landscaping on these roadways through February 2017. Parks and Recreation will work with TXDOT on any issues that arise during the year that TXDOT is maintaining landscaping on the above‐listed medians. Union Pacific Railroad provided the City with a beautification lease to takeover maintenance on 37.5 acres in railroad right‐of‐way on Mingo Road. The lease allows for maintenance inside the 25’ railroad right‐of‐way, which includes the ongoing maintenance of several stands of native oaks. The UPRR Beautification Lease was approved by Council in February 2016.

Key Focus Area 4: Safe, Liveable & Family‐Friendly Community

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Develop a mobile library concept to deliver materials to underserved areas

Library October 2015 The Library Department began service to 7 underserved communities last October using a repurposed, underused van reassigned from the Parks Department. We visit the locations monthly using existing staff on a volunteer basis. Staff involved in the project meet quarterly to help develop the program into an impactful experience for customers and a meaningful interaction for staff. Locations visited include: Fairoaks senior housing, Primrose senior housing, Country Park apartments, The Roxtonapartments, Denton State School, Renaissance Courts apartments, and The Vintage neighborhood.

Complete reconstruction of Fire Station #2 and begin work to reconstruct stations #3 and #4

Fire July 2016 Construction for Station 2 is nearing 90% completion. Certificate of Occupancy is expected after September 1. The design phase is underway for Station 4 and the construction phase is expected to be bid in August. Construction will begin in the Fall of 2016 with 18 month build time. The architectural firm is preparing a Professional Service Agreement that will be approved by City Council for design of Station 3. The anticipated timeline for construction will begin Spring 2017.


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Assign an additional medic unit to Fire Station #7 and implement agreement withArgyle Emergency Services District

Fire January 2016 City Council has approved the first responder contract with Argyle ESD. On January 1, 2016 an additional medic unit was placed in service at Fire Station 7.

Evaluate the current dispatch system and provide recommendations on changesto improve efficiency, effectiveness, and cost

Police, Fire April 2016 In August 2015, the City began a comprehensive Public Safety Dispatch study with an expert consultant firm, Mission Critical Partners (MCP). The study will focus on five tasks: (1) analyze the City’s methods and procedures of processing emergency

calls ;(2) analyze the Communications Center staffing; (3) assess the upgrade or replacement of the Computer Aided Dispatch

(CAD) System and Fire Department Records Management Systems (RMS);

(4) assess the current voice and data system capabilities and future radio system planning;

(5) assess the Public Safety Communications and Emergency Management space needs.

Implementation of staffing and processing recommendations made in the Task 1 and 2 report are on‐going. Final reports for Task 4 and 5 have been received. Stakeholder meetings for Task 3 continue.


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Complete the development of a Municipal Setting Designation for the downtown area

Environ. Services January 2016 Completed on September 4, 2015.

Identify and prioritize Green House Gas emission reduction strategies

Environ. Services January 2016 An Air Quality Action Plan was submitted to the Committee on the Environment on August 3, 2015. The Sustainability Plan was presented on January 20, 2016 to the Committee on the Environment during which actions were updated and goals for next 1‐2 year time frame were established.

Key Focus Area 5: Safe, Sustainable & Environmental Stewardship

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Continue implementation of the bicycle mobility plan Transportation Ongoing The Bicycle and Pedestrian Coordinator and Transportation Engineer created a list of projects for the FY 15‐16 $200,000 funding allocation for implementing the Bike Plan. The list includes 7 projects that increase connectivity of existing routes and build on previous efforts, and includes work on Eagle Dr, Congress and Paisley, to name a few. Construction on Eagle Dr. started in May, Congress will start as soon as paving work is completed, and portions of a sidepath on Paisley have been completed as part of the DME and Street project in that area. All the projects will account for 5.6 new miles of on‐street bike infrastructure, which includes bike lanes, sharrows and sidepaths. In addition, work was completed on the McKinney crossing, which is a key connection for people walking and biking from downtown to Quakertown Park and TWU.


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Develop and begin implementation of a sidewalk and pedestrian mobility plan for the city with an emphasis on the downtown area

Transportation February 2016 A Recommended Sidewalk Priority Listing for the 2014 Bond Program Miscellaneous Sidewalks Program (new sidewalks) has been developed. Priority new sidewalks for the Downtown Area were identified, as instructed by the Council, and costs estimated, with the highest of those priorities incorporated into the 2014 Bond Program Sidewalk Listing, just below “ADA complaint” sidewalks. Funding for the remainder of the Downtown sidewalks will present a challenge. Additionally, the Bicycle and Pedestrian Coordinator worked with PCO to develop a public service announcement regarding pedestrian safety on the Square and properly using the crosswalks.


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Section 6


June 2016

G.O. BOND PROGRAM REPORT

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2012 GO BOND PROGRAM UPDATE

Program Description

TotalProject Cost

Bonds Issued Spent/Encumbered

Availableas of 6/30/16

Street Reconstruction $20,000,000 $16,000,000 $10,378,649 $5,621,351

Public Art for Streets $400,000 $400,000 $0 $400,000

Proposition 1 – Street & Public Art Improvements $20,400,000 $16,400,000 $10,378,649 $6,021,351

Program Description Staff Comments

Street Reconstruction Staff has completed 86 segments and is in the process of working on 4 segments of the 208 total segments.Lillian Miller from I-35E to Teasley is complete. We have completed the following projects from the 2015-20 Bond program: Darby Lane, Cooper Branch, Branch Crossing, College St., Pirtle St, Avenue A, and Denton St.

Public Art for Streets An iconic Denton Medallion is to be placed along I-35 on either side of the North Texas Blvd. Bridge. Proposal for artistic design, construction and installation is scheduled for delivery to staff September 2016.

Proposition 1 – Street & Public Art Improvements

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2014 GO BOND PROGRAM UPDATEProgram

DescriptionTotal

Project CostBonds Issued Spent/Encumbered


Street Reconstruction $24,000,000 $2,000,000 $0 $2,000,000

Misc. Traffic Signals $3,000,000 $1,000,000 $150,580 $849,420

Transportation Division Facility $1,500,000 $1,500,000 $119,650 $1,380,350

Rail Quiet Zone – McKinney to Prairie $350,000 $350,000 $0 $350,000

Bonnie Brae Secondary Arterial $9,500,000 $2,000,000 $0 $2,000,000

Misc. Sidewalks $2,000,000 $950,000 $55,398 $894,602

Hickory Creek Road – FM 2181 to Riverpass $3,000,000 $3,000,000 $0 $3,000,000

Morse Street Expansion $2,900,000 $1,250,000 $0 $1,250,000

Ruddell Extension $5,780,000 $790,000 $535,754 $254,246

Misc. Roadways $2,000,000 $500,000 $0 $500,000

Proposition 1 – Street Improvements $54,030,000 $13,340,000 $861,382 $12,478,618

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Description Staff Comments

Street Reconstruction The Eagle Drive from Carroll Blvd. to N. Texas Blvd. Eagle Drive is under construction.

Misc. Traffic Signals At 99% design for Locust and Oak/Hickory (2 intersections) and Elm and Oak/Hickory (2 intersections) will be at 100% very soon. Anticipated completion is 90 days.

Transportation Division Facility Staff and Architects are currently working on the construction documents for this facility.

Rail Quiet Zone – McKinney to Prairie Staff is currently working with UPRR, DCTA and NCTCOG on a larger project in this corridor that will include QZs/other transportation system improvements. We anticipate a preliminary action plan in 3rd Quarter FY 16 that may allow QZ bond funds to be leveraged with additional grant funds through NCTCOG.

Bonnie Brae Secondary Arterial Consultant contract scoping completed and anticipate Council consideration in September 2016. Alignment adjusted and ROW exhibits for offers generated.

Misc. Sidewalks Sidewalk projects set up and moving forward for all of FY 2014-15 funding. Some delay in implementation as additional input being received on prioritizations.

Hickory Creek Road – FM 2181 to Riverpass Soliciting consultant proposals to fast track design and construction.

Morse Street Expansion Working with consultant on proposal for design. Still anticipate inclusion of construction in Mayhill Road project – put on hold as staff/consultant focus on bidding Mayhill Road.

Ruddell Extension Consultant design at 30% complete. Working through drainage issues and UPRR coordination.

Misc. Roadways All funding committed as local match to construction of Hickory Creek Road between FM 2181 and FM 2499. Fully executed agreement for project received from TxDOT.

Proposition 1 – Street Improvements

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Program Description

TotalProject Cost



Fire Station #4 Remodel/Rebuild – Sherman Drive $5,020,000 $5,020,000 $945,318 $4,074,682

Fire Station #3 Remodel/Rebuild – McCormick $8,620,000 $2,205,000 $1,815,577 $389,423

Police Lobby Renovation $115,000 $115,000 $115,000 $0

Relocation of Communications Center & Criminal Investigations Bureau

$2,000,000 $205,000 $0 $205,000

Police Firing Range Improvements with Ten Foot Berm Addition

$485,000 $485,000 $31,750 $453,250

Public Art for Public Safety $325,000 $325,000 $0 $325,000

Proposition 2 – Public Safety $16,565,000 $8,355,000 $2,907,645 $5,447,355

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Description Staff Comments

Fire Station #4 Remodel/Rebuild – Sherman Drive Land acquisition is complete and project is currently in the design process. Expect construction to begin in November 2016.

Fire Station #3 Remodel/Rebuild – McCormick Land acquisition is complete. Design expected to start Fall 2016.

Police Lobby Renovation Construction is set to begin early October 2016.

Relocation of Communications Center & Criminal Investigations Bureau

A study commissioned by the Police and Fire Department has recommended that the Communications Center not be moved but improved in its current location. An architectural study is being explored to review the work areas for the dispatch center and criminal investigations.

Police Firing Range Improvements with Ten Foot Berm Addition

Initial ground work has started. A new entry way and gate have been installed. Grade work has been completed on the west and south end of the property. Improving the berm should start in the near future. The building is on hold due to building restrictions, options are being discussed.

Public Art for Public Safety The Firefighters Memorial design concept was approved by Council in 2016. The project is proposed to be completed by September 2017.

Proposition 2 – Public Safety

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Program Description

TotalProject Cost



Eagle Drive Drainage Improvements Phase 2 $2,098,000 $2,098,000 $152,818 $1,945,182

Hickory Street Drainage & Trunk Line System – Downtown Implementation Plan

$600,000 $600,000 $0 $600,000

Magnolia Street Drainage Phase 2 (Hinkle Project) $2,557,000 $2,557,000 $82,857 $2,474,143

Proposition 3 – Drainage & Flood Control Improvements $5,255,000 $5,255,000 $235,675 $5,019,325

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Eagle Drive Drainage Improvements Phase 2 Plan updates completed. ROW/easements fully acquired. Utility relocations associated with drainage project to be coordinated with TxDOT.

Hickory Street Drainage & Trunk Line System – Downtown Implementation Plan

Proposal received from consultant and under staff evaluation.

Magnolia Street Drainage Phase 2 (Hinkle Project) Design approximately 40% complete.

Proposition 3 – Drainage & Flood Control Improvements

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Program Description

TotalProject Cost



Playground Replacements $890,000 $150,000 $39,517 $110,483

Park Improvements (South Lakes, Lake Forest) $355,000 $55,000 $0 $55,000

Sprayground $200,000 $200,000 $0 $200,000

Water Works Park Additions – Wave Pool/Concession Stand $2,442,000 $2,442,000 $76,500 $2,365,500

Vela Soccer Complex Phase II Construction $1,333,000 $1,333,000 $0 $1,333,000

Public Art for Parks $180,000 $100,000 $67,210 $32,790

Proposition 4 – Park System Improvements $5,400,000 $4,280,000 $183,227 $4,096,773

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Playground Replacements Evers Park playground complete. Carl Young Sr. playground scheduled for replacement in conjunction with spray ground in Spring 2017.

Park Improvements (South Lakes, Lake Forest) The shelter and basketball court construction at Lake Forest & Milam Parks were complete via an endowment from a private foundation along with matching funds.

Sprayground Design concepts are being prepared for the spray ground and the restrooms. Survey for platting completed and forwarded to Architect. Conceptual designs have been shared with members of SEDNA via 4 public meetings. Anticipated completion Spring 2017.

Water Works Park Additions – Wave Pool/Concession Stand Wave Pool and concession designs are being completed. Project to bid Summer 2016, construction begins September 2016, pool and concession open Spring 2017.

Vela Soccer Complex Phase II Construction 100% plans have been submitted from Dunaway. Staff is completing the DRC process. Anticipated completion Summer 2018

Public Art for Parks The Moroles sculpture has been purchased, and is scheduled to be installed in the City Hall Courtyard September 2016.

Proposition 4 – Park System Improvements

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Documents

Rendering of New Fire Station #2 City of Denton, Texas · 2016-11-22 · Note: All figures presented2 are in millions of dollars. FY 2015-16 FY 2015-16 ANNUAL ANNUAL FY 2015-16 DESCRIPTION