City Council Meeting Agenda Packet 9-21-2021CITY OF HUNTSVILLE, TEXAS Andy Brauninger, Mayor Daiquiri Beebe, Ward 1 Russell Humphrey, Ward 2 Blake Irving, Ward 3 Mayor Pro Tern Joe P. Rodriquez, Ward 4
Bert Lyle, Position 1 At-Large Dee Howard Mullins, Position 2 At-Large Vicki McKenzie, Position 3 At-Large Pat Graham, Position 4 At-Large
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HUNTSVILLE CITY COUNCIL AGENDA TUESDAY, SEPTEMBER 21, 2021
REGULAR SESSION 6:00 P.M. -City Council Chambers
Huntsville City Hall, 1212 Avenue M, Huntsville, Texas, 77340
Persons with disabilities who plan to attend this meeting and may need auxiliary aids or services are requested to contact the City Secretary's office (936.291.5413) two working days prior to the meeting for appropriate arrangements.
MAIN SESSION [6:00 P.M.] CALL TO ORDER and INVOCATION AND PLEDGES -U.S. Flag a11d Texas Flag: Honor the Texas Flag. I pledge allegiance to thee, Texas, one state, under God, one, and indivisible.
1.PROCLAMATIONS & PRESENTATIONSa.Proclamation -Constitution Weekb.Proclamation -Trinity River Food Bank2.PUBLIC HEARINGa.Ordinance 2021-28 adopting the Tax Rate and levying taxes for the City of Huntsville for theFiscal Year 2021-2022. [Steve Ritter, Finance Director]3.CONSENT AGENDAThe presiding officer will call for public comments before action is taken on these items. (Approvalof Consent Agenda authorizes the City Manager to implement each item in accordance with,sla.ffrecommendations. An item may be removedji-om the Consent Agenda and added to the StatutoryAgenda for full discussion by request of a member of Council.)a.Consider approving the minutes of the regular City Council meeting held on September 7,2021. [Kristy Doll, City Secretary]b.Consider authorizing the City Manager to award mowing and trimming services contract forstreet rights of way, airport, transfer station, and additional acreage. [Brent Sherrod, P.E.,Director of Public Works]c.Second Reading -Consider adopting Ordinance 2021-25 amending the Huntsville Code ofOrdinances, specifically Chapter 12, Buildings and Building Regulations. [Kevin Byal,Director of Development Services/Building Official]d.Second Reading -Consider adopting Ordinance 2021-26 amending the Huntsville Code ofOrdinances, specifically Chapter 20, Fire Prevention and Protection. [Greg Mathis, Fire Chief]1
4.STATUTORY AGENDAa.Consider passage of Ordinance 2021-27 to adopt the Fiscal Year 2021-2022 Budget. [SteveRitter, Finance Director]b.Consider approval of Ordinance 2021-28 adopting the Tax Rate and levying taxes for the Cityof Huntsville for the Fiscal Year 2021-2022. [Steve Ritter, Finance Director]c.Consider ratifying the increased property tax revenues of $504,750 reflected in the Fiscal Year2021-2022 Budget as adopted. [Steve Ritter, Finance Director]5.CITY COUNCIL/MAYOR/CITY MANAGERa.First Reading -Consideration and discussion of Ordinance No. 2021-29 to deny EntergyTexas Inc. application in total to amend its Distribution Cost Recovery Factor ("DCRF") filedon August 30, 2021. (Leonard Schneider, City Attorney]b.Second Reading -Consider a request from Huntsville Memorial Hospital for American RescuePlan Act (ARP) funds to provide additional nursing staff in response to COVID-19. [ AronKulhavy, City Manager]c.Consider adoption of Ordinance 2021-30 to amend the budget for FY 20-21 and/or CIP Projectbudgets. [Steve Ritter, Finance Director]d.Consider the appointments to City of Huntsville Boards and Committees for expired terms orvacant board positions. [Andy Brauninger, Mayor)e.Second Reading-Consider adoption of Ordinance 2021-24 amending the City of HuntsvilleDevelopment Code Article 7 "Landscape and Buffers", Article 15 "Terminology andDefinitions", adding "Residential Planting Requirements", Tree Preservation Standards andmaking other provisions and declaring an effective date. [Kevin Byal, Director of DevelopmentServices/Building Official]6.REQUESTS FOR CITIZEN PARTICIPATION(An opportunity for citizens to be heard on any topic and for the City Council to participate in thediscussion. No action will be taken.)7.MEDIA INQUIRIES RELATED TO MATTERS ON THE AGENDA8.ITEMS OF COMMUNITY INTEREST(Hear announcements concerning items of community interest from the Mayor, Councilmembers,and City staff for which no action will be discussed or taken.)9.EXECUTIVE SESSIONa.City Council will convene in closed session as authorized by Texas Government Code,Chapter 551, Section 551.071 to receive legal advice on the ESD# 3 proposed annexation.ADJOURNMENT *If during the course of the meeting and discussion of any items covered by this notice, City Councildetermines that a Closed or Executive session of the Council is required, then such closed meeting willbe held as authorized by Texas Government Code, Chapter 551, Section 551.071 -consultation withcounsel on legal matters; 551.072 -deliberation regarding purchase, exchange, lease or value of realproperty; 551.073 -deliberation regarding a prospective gift; 551.074 -personnel matters regardingthe appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a publicofficer or employee; 551.076 -implementation of security personnel or devices; 551.087 -deliberation regarding economic development negotiation; Sec. 551.089 -deliberation regarding2
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MINUTES FROM THE HUNTSVILLE CITY COUNCIL REGULAR MEETING HELD ON THE 7th DAY OF SEPTEMBER 2021, IN THE CITY HALL, LOCATED AT 1212 AVENUE M, IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS, AT 6:00 P.M.
The Council met in a workshop and regular session with the following: COUNCILMEMBERS PRESENT: Daiquiri Beebe, Russell Humphrey, Dee Howard Mullins, Joe P. Rodriquez, Andy Brauninger, Pat Graham, Vickie McKenzie, Bert Lyle, and Blake Irving
COUNCILMEMBERS ABSENT:
OFFICERS PRESENT: Aron Kulhavy, City Manager; Kristy Doll, City Secretary; and Leonard Schneider, City Attorney
MAIN SESSION [6:00 P.M.]
CALL TO ORDER – Mayor Brauninger called the meeting to order at 6:00 p.m.
INVOCATION AND PLEDGES U.S. Flag and Texas Flag: Honor the Texas Flag. I pledge allegiance to thee, Texas, one state, under God, one, and indivisible.
Councilmember McKenzie gave the invocation, and Mayor Brauninger led the pledges.
1.PUBLIC HEARINGa.Consider adoption of the City of Huntsville’s Comprehensive Plan Update 2040 to be the
city’s updated comprehensive plan to follow as a guide for future growth and development.[Armon Irones, City Planner]
Mayor Brauninger opened the public hearing at 6:01 p.m. City Planner Armon Irones andMeredith Dang, a representative of Kendig Keast Collaborative, provided an overview
presentation of the 2040 comprehensive plan. Robert McCafferty and Christopher McCafferty
gave public comments regarding the comprehensive plan. Mayor Brauninger closed the publichearing at 6:26 p.m.
b.Consider amending the Huntsville Code of Ordinances, specifically Chapter 12, Buildings
and Building amending Chapter 20, Fire Prevention And Protection. [Kevin Byal, Directorof Development Services/Building Official and Greg Mathis; Fire Chief]
Mayor Brauninger opened the public hearing at 6:27 p.m. Director of Development Service/Building Official Kevin Byal and Fire Chief Greg Mathis presented the code amendments to
Chapter 12 and Chapter 20 of the Huntsville Municipal Codes for Building Codes and Fire
Codes. Christopher McCafferty gave a public comment regarding the building codes. MayorBrauninger closed the public hearing at 6:50 p.m.
c. Consider FY 21-22 proposed Budget. [Steve Ritter, Director of Finance]
Mayor Brauninger opened the public hearing at 6:50 p.m. No citizen comments were made in
support or opposition of the proposed FY21-22 budget. Mayor Brauninger closed the publichearing at 6:53 p.m.
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2. CONSENT AGENDA Public Comments will be called for by the presiding officer before action is taken on these items. (Approval of Consent Agenda authorizes the City Manager to implement each item in accordance with staff recommendations. An item may be removed from the Consent Agenda and added to the Statutory Agenda for full discussion by request of a member of Council.) a. Consider approving the minutes of the regular City Council meeting held on August 17, 2021. [Kristy Doll, City Secretary]
Councilmember Beebe made a motion to approve the consent agenda; the motion was seconded by Councilmember Rodriquez. The motion was adopted, 9-0. 3. STATUTORY AGENDA a. Consider adoption of Resolution 2021-14 the City of Huntsville’s Comprehensive Plan Update 2040 to be the city’s updated comprehensive plan to follow as a guide for future
growth and development. [Armon Irones, City Planner] Councilmember Beebe made a motion to approve the Comprehensive Plan; the motion was seconded by Councilmember Mullins.
Director of Development Services Kevin Byal requested clarification on the motion before the vote. He asked to clarify if the Council was approving the Comprehensive Plan prepared by the consultant or with the Planning Commission’s recommendations. The Mayor responded that he thought the Planning Commission’s recommendations were part of the Comprehensive Plan, and
the motion was to approve the Comprehensive Plan as presented.
The motion was adopted, 9-0. b. First Reading - Consider adopting Ordinance 2021-25 amending the Huntsville Code of Ordinances, specifically Chapter 12, Buildings and Building Regulations. [Kevin Byal, Director of Development Services/Building Official] First reading, no action necessary.
c. First Reading - Consider adopting Ordinance 2021-26 amending the Huntsville Code of Ordinances, specifically Chapter 20, Fire Prevention And Protection. [Greg Mathis; Fire Chief]
First reading, no action necessary. d. Second Reading - Consider adoption of Ordinance 2021-24 amending the City of Huntsville Development Code Article 7 “Landscape and Buffers”, Article 15 “Terminology and
Definitions”, adding “Residential Planting Requirements”, Tree Preservation Standards and making other provisions and declaring an effective date. [Kevin Byal, Director of Development Services/Building Official] Councilmember Beebe made a motion to adopt Ordinance 2021-24 amending the City of
Huntsville Development Code Article 7 “ Landscape and Buffers”, Article 15 “Terminology and
Definitions”, adding “Residential Planting Requirements”, Tree Preservation Standards and
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making other provisions and declaring an effective date.; the motion was seconded by Mayor
Brauninger. Citizen comments were heard from Carrie Watson, Cheryl Spencer, Scott Horning and Christopher McCafferty in regards to the Tree Preservation Ordinance.
Councilmember Irving made a motion to postpone item 3d until a later date, the motion was seconded by Councilmember McKenzie. Councilmembers Graham, Humphrey, Irving, Mullins, McKenzie, Rodriquez, and Lyle voted for postponement of the tree ordinance and Councilmember Beebe, and Mayor Brauninger voted against the postponement. The motion was
adopted, 7-2.
4. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY a. First Reading - Consider a request from Huntsville Memorial Hospital for American Rescue Plan Act (ARP) funds to provide additional nursing staff in response to COVID-19. [Aron Kulhavy, City Manager] First reading, no action necessary.
b. First Reading - Consider authorizing the City Manager to execute the necessary documents for the purchase of approximately 2.75 acres from the Walker County Hospital District located near the intersection of 12th Street and Avenue O for the City Hall expansion project. [Aron Kulhavy, City Manager]
Council took a five-minute recess at 8:04 p.m. Councilmember Humphrey made a motion to waive the second reading and approve the purchase of approximately 2.75 acres from the Walker County Hospital District located near the
intersection of 12th Street and Avenue O for the City Hall expansion project; the motion was
seconded by Councilmember Lyle motion adopted. The motion was adopted, 9-0. c. Consider Decision Packages for the 2021-22 Budget [Steve Ritter, Director of Finance, and Aron Kulhavy, City Manager]
A request was received to pull the additional skate park modules for $15,000 from decision package # 5, and it will not be considered separately. Councilmember McKenzie made a motion to approve the Decision Packages listed as items 4c
(1)-(5) on the City Council agenda; the motion was seconded by Councilmember Graham. The
motion was adopted, 9-0. Councilmember Irving made a motion to amend Item 4c for decision package 4 to not hire an Economic Development Specialist and instead use the salary and benefits of the Economic
Development Specialist to hire an additional firefighter; the motion was seconded by
Councilmember McKenzie. Councilmembers Graham, Lyle, Mullins, McKenzie, Beebe, Irving, and Humphrey voted for the amended motion. Council member Rodriquez and Mayor Brauninger voted against the amended motion. The motion was adopted, 7-2.
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Councilmember Beebe recused herself due to conflict of interest and left the Council Chambers
at 8:48 p.m. Councilmember Humphrey made the motion to include the skate park modules in the decision package; the motion was seconded by Councilmember Graham. Councilmember Lyle, Graham,
Humphrey, Rodriquez, Irving, McKenzie, and Mayor Brauninger voted for the motion.
Councilmember Mullins voted against the motion. The motion was adopted, 7-1. d. Consider motion to postpone approval of the fiscal year 2021–2022 Budget to the
September 21, 2021, City Council meeting [Steve Ritter, Director of Finance] Councilmember McKenzie made a motion to postpone approval of the fiscal year 2021 - 2022 Budget to the September 21, 2021, Council meeting; the motion was seconded by Councilmember Mullins. The motion was adopted, 9-0.
e. Consider authorizing the city manager to find solutions to address the speeding by traffic calming devices and limit the destruction of city roads by limiting travel for class 6 trucks or higher in the New Addition area [Blake Irving, City Councilmember]
Councilmember Irving made a motion to authorize the City Manager to look at traffic calming
measures to address the speeding and limiting the direction in which trucks bigger than a class 6 can travel. In the New Addition Area (Old Colony Rd & Geneva Rd) East of SH 19N and North of US HWY 190 E.; the motion was seconded by Councilmember Humphrey. The motion was adopted, 9-0
5. REQUESTS FOR CITIZEN PARTICIPATION An opportunity for citizens to be heard on any topic and for the City Council to participate in the
discussion. No action will be taken. None 6. MEDIA INQUIRIES RELATED TO MATTERS ON THE AGENDA None 7. ITEMS OF COMMUNITY INTEREST (Hear announcements concerning items of community interest from the Mayor, Councilmembers, and City staff, for which no action will be discussed or taken.)
Mayor Brauninger announced that the Farmers Market has a new location on 12th Street and Ave M. Councilmember Irving announced that Main Street is hosting a “Touch-a-Truck” event from 10am-1pm on Saturday, September 25.
Councilmember Lyle spoked about the Harvest Celebration from 5-7pm on Saturday, September 25 at the Wynne Home. Councilmember Beebe announced the 47th Annual Fair on the Square will be on October 2nd.
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Mayor Brauninger announced the HEARTS Veterans Museum of Texas 4th Annual Muster Festival will be held Saturday, September 11 from 10 am - 4 pm. 8. EXECUTIVE SESSION a. City Council will convene in closed session as authorized by Texas Government Code, Chapter 551, Section 551.071 to receive legal advice on the ESD# 3 proposed annexation. b. City Council will convene in closed session as authorized by Texas Government Code, Chapter 551, Section 551.071 to receive legal advice on Jason January v City of Huntsville, Texas, No. 4:21cv303 Southern District of Texas. The Council convened into Executive Session at 9:02 p.m. 9. RECONVENE The Council reconvened in open session at 9:51 p.m.
ADJOURNMENT
Mayor Brauninger adjourned the meeting without objection at 9:52 p.m. ATTEST: CITY OF HUNTSVILLE ________________________________ ________________________________ Kristy Doll, City Secretary Andy Brauninger, Mayor
Agenda Item # 3b
Item/Subject: Consider authorizing the City Manager to award mowing and trimming services
contract for street rights of way, airport, transfer station and additional acreage.
Initiating Department/Presenter: Public Works
Presenter: Brent Sherrod, P.E., Director of Public Works
Recommended Motion: Move to authorize the City Manager to award mowing and trimming services
contract for rights of way and the Airport to Wayne Pool, LLC and for the transfer station and additional
acreage to Double Eagle Erosion Solutions.
Strategic Initiative: Goal #1 - City Appearance - Provide policies, amenities, and events that enhance
the City’s already beautiful and historic natural environment.
Discussion: The City contracts mowing and trimming service on a routine schedule. The areas owned
by the City for which mowing and trimming services are used are referred to as: Veterans Memorial
Boulevard, Col. Etheridge, Financial Plaza, Smither Drive, Woodward Drive, Robinson Creek Parkway,
The City of Huntsville Transfer Station, and The Bruce Brothers Regional Airport. The City has also
requested a cost per acre to mow areas currently unassigned to a maintenance schedule. This service
includes mowing, trimming, litter pickup, and the use of herbicide where applicable.
Over the years the areas which involve outside services has experienced growth. These areas will
exceed $50,000 this fiscal year and require a solicitation with formal Council adoption. A sealed
proposal was conducted with two responses received with a two-year term. The proposal requested
that each responder outline their qualifications and experience, along with the cost for services.
City staff is recommending awarding the mowing of Veterans Memorial, Colonial Etheridge, Financial
Plaza, Smither Dr, Woodward Dr, Robinson Creek Pkwy, and Bruce Brothers Airport to Wayne Pool, LLC
of Huntsville. Staff recommends awarding the City of Huntsville Transfer Station mowing and additional
acreage mowing contract to Double Eagle Erosion Solutions from Spring Texas.
Previous Council Action: Council awarded the contract to Wayne Pool, LLC on 10/1/2019.
Financial Implications:
9/21/2021
Agenda Item: 3b
CITY COUNCIL AGENDA
Agenda Item # 3b
☐There is no financial impact associated with this item. ☒Item is budgeted: Airport $24,000, Street $41,800, and Solid Waste $12,150 budgets
In the amount of $77,950 (amount in the budget accounts)
☐Item is not budgeted:
☐Item is estimated to generate additional revenue:
Approvals: ☐City Attorney ☐Director of Finance ☒City Manager
Associated Information:
• Bid Tabulation Sheet
Wayne Pool, LLC
Description – Right of Way to be Mowed and Trimmed Unit Price per mowing and
trimming
Estimated # of hours to
complete the area
1. Veterans Memorial Parkway, Colonel Ethridge, Financial Plaza,
Smither Dr, Woodward Dr, Robinson Creek
Parkway
$ 4,150.00 30 Hrs.
2. Partial mowing of Veterans, Financial, Colonel Ethridge, Woodward Dr. and Smither Dr to include all the medians and six feet behind the
curb/sidewalk.
*Wildflower protection mowing
$ 3,150.00 20 Hrs.
3. Airport Mowing $ 2,980.00 20 Hrs.
4. Transfer Station Mowing $ 1,600.00 20 Hrs.
5. Additional Mowing per Acre $37.00 Per Acre
Double Eagle Erosion Solutions
Description – Right of Way to be Mowed and Trimmed Unit Price per mowing and trimming Estimated # of hours to complete the area
1. Veterans Memorial Parkway, Colonel Ethridge, Financial Plaza,
Smither Dr, Woodward Dr, Robinson Creek
Parkway
No Bid -
2. Partial mowing of Veterans, Financial, Colonel Ethridge, Woodward
Dr. and Smither Dr to include all the medians and six feet behind the
curb/sidewalk.
*Wildflower protection mowing
No Bid -
3. Airport Mowing $ 2,950.00 16 Hrs.
4. Transfer Station Mowing $ 750.00 8 Hrs.
5. Additional Mowing per Acre $29.50 Per Acre
Bid Tabulation
Project Name: Mowing and Trimming Services
Invitation for Bid NO. 21-18
Date: Monday, August 30, 2021 Time: 2:00 PM Central Time
6. Additional Services Offered: Mowing with bating mowers, slope mowing, weedeating, pruning, erosion repairs, silt removal of drainage
channels, drainage pipe repairs/replacements, channel and asset assessments, turf establishments, fertilization, overseeding.
6. Additional Services Offered: Hauling, backhoe/excavator work, skid steer and tractor work, fencing of all kinds, welding, ROW Mowing
Agenda Item # 3c
Item/Subject: Consider adopting Ordinance 2021-25 amending the Huntsville Code of Ordinances,
specifically Chapter 12, Buildings and Building Regulations.
Initiating Department/Presenter: Development Services
Presenter: Kevin Byal, Director of Development Services/Building Official
Recommended Motion: Motion to approve Ordinance 2021-25 amending the Huntsville Code of
Ordinances, specifically Chapter 12, Buildings and Building Regulations adopting the 2021 International
Codes as reflected in exhibit A.
Strategic Initiative: Goal #7 - Public Safety - Provide safety and security for all citizens.
Discussion: Construction codes are key to keeping occupants of the buildings in our community safe.
Updated building codes are the most effective, least expensive way to protect public health and safety
as well as providing for the safety of our first responder during catastrophic events.
Attempting to guide development and building safety with dated codes presents challenges for both
building designers and contractors alike since newly developed materials and construction methods
that are now available in the industry are not recognized by older code edition. With the adoption of
the 2021 International Codes, the provisions contained within will facilitate the design and construction
of new buildings in our city by recognizing the advancements that are not available in previous editions.
In addition, keeping with current codes is necessary to maintain or reduce the City’s ISO ratings, to
minimize insurance costs for the citizens.
At present, the code editions that prescribes the way buildings are to be constructed and maintained
in Huntsville is the 2015 edition of the International Codes, published by the International Code Council
(ICC). This ordinance proposes to adopt the 2021 edition of the International Codes and updates the
following;
▪International Building Code▪International Fire Code
▪International Fuel Gas Code
▪International Mechanical Code
▪International Plumbing Code
▪International Property Maintenance Code
▪International Residential Code
▪International Swimming Pool & Spa Code
▪International Existing Building Code (New)
In the revised Building Code, all provisions that previously addressed existing buildings have been
removed and placed into the International Existing Building Code. It is necessary to include this code in
the adoption as it will continue to provide flexibility necessary when repairing or remodeling existing
buildings and recognizes conditions of previous code editions.
9/21/2021
Agenda Item: 3c
CITY COUNCIL AGENDA
Agenda Item # 3c
At this time staff is not proposing the adoption of the 2021 International Energy Conservation Code as
our research indicates that by doing so would increase the cost of new construction in meeting the
elevated requirements.
On August 18, 2021, the Board of Adjustments and Appeals met and held a public hearing. Staff gave
the Board a presentation outlining the proposal to recommend the adoption of the 2021 edition of the
International Codes. One person from the public requested to speak. The Board concluded the meeting
with the vote reflecting 3 to 1 in support of advancing a positive recommendation to City Council for
adoption of the 2021 International Codes and a unanimous vote to support amendments that will proved for permits for driveways, parking lots and operating safety certificate.
In addition to the adoption of the 2021 International Codes, several amendments to our local ordinance
are required that address revised numbering of various code sections for consistency, deletion of
outdated and obsolete requirements and redundant or repeated code provisions that are found
elsewhere in the code.
Previous Council Action:
• March 6, 2012, the City Council adopted the 2009 edition of the International Codes.
• September 20, 2016, the Council adopted the Energy Efficiency provisions of the 2015
International Residential Code
• December 21, 2017, Council adopted the 2015 edition of the International Codes.
• September 7, 2021, Council held a public hearing for the purpose of gaining public input on the
ordinance and considered the first reading of the ordinance.
Financial Implications: There is no financial impact associated with this item.
Approvals: ☐City Attorney ☐Director of Finance ☒City Manager
Associated Information:
• Ordinance 2021-25
• Exhibit A
ORDINANCE NO. 2021-25
AN ORDINANCE AMENDING THE CITY OF HUNTSVILLE, TEXAS CODE OF ORDINANCES, SPECIFICALLY CHAPTER 12 “BUILDINGS AND BUILDING REGULATIONS”; MAKING OTHER PROVISIONS AND FINDINGS THERETO; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the Huntsville Code of Ordinances, Chapter 12 “BUILDING AND BUILDING REGULATIONS” provides for the regulation of residential and commercial buildings for the health, safety and public welfare of the City’s residents:
WHEREAS, the City of Huntsville, as a home rule city may regulate this activity pursuant to its broad powers of self-government; and
WHEREAS, City Council finds it necessary to amend its existing regulations of these activities to protect the health and public safety; now therefore
WHEREAS, the City Council of the City of Huntsville, Texas now wishes to amend Chapter 12 to help promote the health, safety and welfare of its residents;
WHEREAS, notice of the agenda for this meeting, was given in accordance with law by posting the same at the place reserved and designated for notices of public meetings and public activities
and prior to the adoption of this ordinance.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, that:
SECTION 1: The facts and matters set forth in the preamble of this Ordinance are found to be
true and correct and are hereby adopted, ratified, and confirmed.
SECTION 2: Huntsville Code of Ordinances Chapter 12 “BUILDINGS AND BUILDING
REGULATIONS”, Article II, Sections 12-19, 12-20, 12-22, 12-23, 12-24, 12-25, 12-26, 12-27 are
amended and a new section 12-30 is added as shown on the attached Exhibit “A”.
SECTION 3: All ordinances or parts of Ordinances that are in conflict or inconsistent with the
provisions of this Ordinance shall be, and the same are hereby, repealed and all other ordinances of the City not in conflict with the provisions of this Ordinance shall remain in full force and effect. SECTION 4: Should any paragraph, sentence, clause, phrase or section of this Ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of
this Ordinance as a whole or any part or provision thereof, other than the part so declared to be
invalid, illegal or unconstitutional.
SECTION 5: This Ordinance, being a penal ordinance, becomes effective ten (10) days after its date
of passage by the City Council, as provided by Article 4.14 of the Charter of the City of Huntsville, Texas. PASSED AND APPROVED on this the __________th day of ________________ 2021. THE CITY OF HUNTSVILLE
___________________________________ Andy Brauninger, Mayor ATTEST: APPROVED AS TO FORM:
___________________________ __________________________________ Kristy Doll, City Secretary Leonard Schneider, City Attorney
Exhibit A
Chapter 12 - BUILDINGS AND BUILDING REGULATIONS[1]
ARTICLE I. - IN GENERAL
Secs. 12-1—12-18. - Reserved.
ARTICLE II. - BUILDING CODES
Sec. 12-19. - Codes adopted by reference.
(a) The book entitled "International Building Code, 2015 2021 Edition," a copy of which, authenticated by the signatures of the mayor and city secretary, and made a public record by this section, is on file in the city secretary's office, is hereby adopted as the building code of the city as fully as if copied at length in this article, and the provisions thereof shall be controlling in the construction of all buildings and other structures within the corporate limits of the city.
(b) The book entitled "International Property Maintenance Code, 2015 2021 Edition," a copy of which, authenticated by the signatures of the mayor and city secretary, and made a public record by this section, is on file in the city secretary's office, is hereby adopted as the housing code of the city as fully as if copied at length in this article, and the provisions thereof shall establish the minimum standards for occupancy of buildings.
(d) The book entitled "International Mechanical Code, 2015 2021Edition," a copy of which, authenticated by the signatures of the mayor and city secretary, and made a public record by this section, is on file in the city secretary's office, is hereby adopted as the mechanical code of the city as fully as if copied at length in this article, and the provisions thereof shall establish the minimum standards for the design,
construction or installation, repair or alterations of mechanical systems.
(e) The book entitled "International Plumbing Code, 2015 2021Edition," a copy of which, authenticated
by the signatures of the mayor and city secretary, and made a public record by this section, is on file in the city secretary's office, is hereby adopted as the plumbing code of the city as fully as if it was copied at length in this article, and the provisions thereof shall establish the minimum standards for plumbing work in the city.
(f) The book entitled "International Fuel Gas Code, 2015 2021 Edition," a copy of which, authenticated by the signatures of the mayor and city secretary, and made a public record by this section, is on file in the city secretary's office, is adopted as the fuel gas code of the city as fully as if it was copied at length in this article, and the provisions thereof shall establish the minimum standards for the design, construction, installation, repair or alteration of gas piping systems and gas appliances.
(g) The book entitled "International Residential Code, 2015 2021 Edition," a copy of which, authenticated by the signatures of the mayor and city secretary, and made a public record by this section, is on file in the city secretary's office, is hereby adopted as the residential code of the city as fully as if it was copied at length in this article, and the provisions thereof shall establish the minimum standards for residential work in the city.
(h) The book entitled "International Swimming Pool and Spa Code, 2015 2021 Edition." a copy of which, authenticated by the signatures of the mayor and city secretary, and made a public record by this section, is on file in the city secretary's office, is hereby adopted as the swimming pool and spa code of the city as fully as if it was copied at length in this article, and the provisions thereof shall establish the minimum standards for commercial swimming pools and spas in the city.
(I) The book entitled "International Existing Building Code, 2021 Edition." a copy of which, authenticated by the signatures of the mayor and city secretary, and made a public record by this section, is on file
in the city secretary's office, is hereby adopted as the existing building code of the city as fully as if it was copied at length in this article, and the provisions thereof shall establish the minimum standards for the repair, alteration, change of occupancy, addition to and relocation of existing buildings in the city.
(Code 1961, § 9.02.01; Ord. No. 81-31, § 1, 7-7-1981; Ord. No. 82-25, § 1, 11-2-1982; Ord. No. 86-19, § 1, 7-15-1986; Ord. No. 87-39, § 1, 12-8-1987; Ord. No. 87-40, § 1, 12-8-1987; Ord. No.
91-16, § 1, 8-6-1991; Ord. No. 97-35, 11-25-1997; Ord. No. 2002-08, 3-5-2002; Ord. No. 2006-02, 1-3-2006; Ord. No. 2011-50, § 2, 8-16-2011; Ord. No. 2012-18, § 2, 3-6-2012; Ord. No. 2017-43, § 2(Exh. A), 11-21-2017; Ord. No. 2018-03, § 2(Exh. A), 11-21-2017; Ord. No. 2018-07, § 2(Exh. A), 11-21-2017)
Sec. 12-20. - Amendments to International Building Code.
(2) Section 3409.1 is hereby amended to read:
3409.1—Historic Buildings. The provisions of the International Building Code (other than chapter 34) relating to the alteration, repair, enlargement, restoration, relocation or moving of buildings or structures shall not be mandatory for existing buildings or structures identified and classified as Recorded Texas Historic Landmarks, National Historic Landmarks, or buildings entered into the National Register of Historic Places, or qualified as such by the building official. It is further provided, however, that:
a. Such buildings or structures are judged by the city building official to be safe;
b. The owner submits complete architectural and engineering plans and specifications bearing the seal of a registered professional engineer or architect; and
c. The owner complies with the requirements of article III of this chapter.
(4) Section 105 is hereby amended to read:
105.1—Application for permit.
105.1 Required. Any owner or authorized agent who intends to construct, enlarge, alter, repair, move, demolish, change commercial tenant or change the occupancy of a building or structure, or to erect, install, enlarge, alter, repair, remove, convert, or replace any electrical, gas, mechanical or plumbing system, or to erect or construct a sign of any description, or to install or alter fire extinguishing systems, or to move, change, or construct an access to or from any public street from a driveway including repair, removal or installation of curbs or culverts, the installation of which is regulated by this or other codes, or to cause any such work to be done, shall first make application to the building official and obtain the required permit.
105.2 delete (5), (6), (8), (10), - add to (2). However, all new and existing fences shall be maintained.
(5) Section 107 is hereby amended in part to read:
107.2.5 6 Site plan. The construction documents submitted with the application for permit shall be accompanied by a site plan showing to scale the size and location of new construction and existing structures on the site, distance from lot lines, the established street grades, proposed finished grades, all existing and proposed easements, storm sewers, natural drains, waterlines, sewer lines, location of water and sewer connections, landscaping and parking; and it shall be drawn in accordance with an accurate boundary line survey. In the case of demolition, the site plan shall show construction to be demolished and the location and size of existing structures and construction that are to remain on the site or plot. The building official is authorized to waive or modify the requirement for a site plan when the application for permit is for alteration or repair or when otherwise warranted.
Appendix B is amended to read:
B101.2101.3—Membership of board. Each member shall be appointed to a two-year term of office. Members are appointed by the Mayor with approval of the City Council.
B101.2.2101.3.1—Qualifications. There is hereby established a board to be called the board of adjustments and appeals, which shall consist of five members. Such board shall be composed of three persons with technical background in building design or construction or experience in the building trades industry, and two other citizens. The mayor (chief appointing authority) shall appoint board members with the approval of the city council.
B101.3.3101.5.3—Postponed hearing. Three members of the board shall constitute a quorum. In varying the application of any provision of this code or in modifying an order of the building official, affirmative votes of the majority present, but not less than three affirmative votes, shall be required. A board member shall not act in a case in which he has a personal interest.
(Code 1961, § 9.02.02; Ord. No. 94-13, 5-10-1994; Ord. No. 97-35, 11-25-1997; Ord. No. 2000-19, 9-26-2000; Ord. No. 2002-08, 3-5-2002; Ord. No. 2006-02, 1-3-2006; Ord. No. 2006-22, § 9.02.02(109.3.05), 10-3-2006; Ord. No. 2011-50, § 3, 8-16-2011; Ord. No. 2017-43, § 2(Exh. A), 11-21-2017; Ord. No. 2019-50 , § 2(Exh. A), 9-17-2019)
Sec. 12-22. - Amendments to International Swimming Pool and Spa Code.
The International Swimming Pool and Spa Code is amended as follows:
(1) Section 105 108 is amended as follows:
105.6.2108.2 Fee schedule. Permittees shall be as established by ordinance from time to time.
105.6.3108.6 Fee Refunds. The code official shall not authorize the refunding of any fee paid
except upon written application filed by the original permittee not later than 180 days after the date of fee payment. No refund will be authorized once work has commenced under the permit.
(2) Section 106 110 is amended by the addition of a new paragraph 106.20 which shall read as follows:
106.20110.17—Final inspection: operating permit required. All swimming pool installations must be completed. The pool shall be completely filled with water and in operation before requesting a final inspection.
(3) Section 107 113 Violations is amended to read as follows:
107.4113.4 Violation penalties. Any person who violates a provision of this code or fails to comply with any of the requirements thereof or who erects, constructs, alters, repairs or occupies a building or structure in violation of the approved construction documents or directive of the building official, or of a permit or certificate issued under the provisions of this code, shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine not exceeding $2,000.00.
(4) Section 108 111 is amended as follows:
Section 108 111 Means of Appeal. Any person shall have the right to appeal a decision of the code official to the board of adjustments and appeals in accordance with the provisions defined by the International Building Code section 113, the International Building Code Appendix G B and as amended therein Section 12-20(6) of this code.
(Code 1961, § 9.02.05; Ord. No. 92-05, 3-31-1992; Ord. No. 97-35, 11-25-1997; Ord. No. 2000-19, 9-26-2000; Ord. No. 2002-08, 3-5-2002; Ord. No. 2006-02, 1-3-2006; Ord. No. 2011-50, § 3,
8-16-2011; Ord. No. 2017-43, § 2(Exh. A), 11-21-2017; Ord. No. 2018-07, § 2(Exh. A), 11-21-
2017)
Sec. 12-23. - Amendments to International Mechanical Code.
The International Mechanical Code is amended as follows:
(1) Section 101.2.1.1. Add section 101.2.1.1 which shall read:
The following appendices are intended for enforcement and are made a part of this code and the city's adopting ordinance for all intends and purposes:
Appendix A—Combustion Air Openings and Chimney Connector Pass-Throughs;
(3) Section 106 109 is amended as follows:
106.5.2109.2 Fee schedule. Permit fees shall be established by ordinance from time to time.
106.5.3109.6 Fee Refunds. The code official shall not authorize the refunding of any fee paid except upon written application filed by the original permittee not later than 180 days after the date of fee payment. No refund will be authorized once work has commenced under the permit.
(4) Section 108.3115.3. Delete section 108.3115.3.
(5) Section 108.4115.4. is amended as follows:
108.4115.4 Violation penalties. Any person who violates a provision of this code or fails to comply with any of the requirements thereof or who erects, constructs, alters, repairs or occupies a building or structure in violation of the approved construction documents or directive of the building official, or of a permit or certificate issued under the provisions of this code, shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine not exceeding $2,000.00.
(6) Section 109114. Amend section 109114, Appeals, to read:
Section 109 114 Means of Appeal. Any person shall have the right to appeal a decision of the code official to the board of adjustments and appeals in accordance with the provisions defined by the International Building Code section 113, the International Building Code Appendix G B and as amended therein Section 12-20 (6) of this code.
(Code 1961, § 9.02.06; Ord. No. 97-35, 11-25-1997; Ord. No. 2002-08, 3-5-2002; Ord. No. 2005-21, 9-20-2005; Ord. No. 2006-02, 1-3-2006; Ord. No. 2007-02, § 3, 2-6-2007; Ord. No.
2011-50, § 3, 8-16-2011; Ord. No. 2018-03, § 2(Exh. A), 11-21-2017)
Sec. 12-24. - Amendments to International Plumbing Code.
The International Plumbing Code is amended as follows:
(1) Section 101.2 is amended by adding:
The appendices included in the Code are intended for enforcement and are made a part of this code and the city's adopting ordinance for all intents and purposes:
Appendix FC—Structural Safety
Appendix G—Vacuum Drainage System
(4) Section 106 109 is amended as follows:
106.6.2109.2 Fee schedule. Permit fees shall be as established by ordinance from time to time.
106.6.3109.5 Fee Refunds. The code official shall not authorize the refunding of any fee paid except upon written application filed by the original permittee not later than 180 days after the date of fee payment. No refund will be authorized once work has commenced under the permit.
(5) Section 108.4115.4. is amended as follows:
108.4115.4 Violation penalties. Any person who violates a provision of this code or fails to comply with any of the requirements thereof or who erects, constructs, alters, repairs or occupies a building or structure in violation of the approved construction documents or directive of the building official, or of a permit or certificate issued under the provisions of this code, shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine not exceeding $2,000.00.
(6) Section 109 114 is amended as follows:
Section 109 114 Means of Appeal. Any person shall have the right to appeal a decision of the code official to the board of adjustments and appeals in accordance with the provisions defined by the International Building Code section 113, the International Building Code Appendix G B and as amended therein Section 12-20 (6) of this code.
(Code 1961, § 9.02.07; Ord. No. 97-35, 11-25-1997; Ord. No. 2002-08, 3-5-2002; Ord. No. 2005-21, 9-20-2005; Ord. No. 2006-02, 1-3-2006; Ord. No. 2007-02, § 4, 2-6-2007; Ord. No. 2011-50, § 3, 8-16-2011; Ord. No. 2018-03, § 2(Exh. A), 11-21-2017; Ord. No. 2019-50 , § 2(Exh. A), 9-17-2019)
Sec. 12-25. - Amendments to International Fuel Gas Code.
(4) Section 106 109 is amended as follows:
106.6.2109.2 Fee schedule. Permit fees shall be as established by ordinance from time to
time.
106.6.3109.6 Fee Refunds. The code official shall not authorize the refunding of any fee paid except upon written application filed by the original permittee not later than 180 days after the date of fee payment. No refund will be authorized once work has commenced under the permit.
(5) Section 108.4115.4. is amended as follows:
108.4115.4 Violation penalties. Any person who violates a provision of this code or fails to comply with any of the requirements thereof or who erects, constructs, alters, repairs or occupies a building or structure in violation of the approved construction documents or directive of the building official, or of a permit or certificate issued under the provisions of this code, shall
be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine not exceeding $2.000.00.
(6) Section 109 113 is amended as follows:
Section 109 113 Means of Appeal. Any person shall have the right to appeal a decision of the code official to the board of adjustments and appeals in accordance with the provisions defined by the International Building Code section 113, the International Building Code Appendix G B and as amended therein Section 12-20 (6) of this code.
(Code 1961, § 9.02.08; Ord. No. 97-35, 11-25-1997; Ord. No. 2002-08, 3-5-2002; Ord. No. 2006-02, 1-3-2006; Ord. No. 2011-50, § 3, 8-16-2011; Ord. No. 2018-03, § 2(Exh. A), 11-21-
2017; Ord. No. 2019-50 , § 2(Exh. A), 9-17-2019)
Sec. 12-26. - Amendments to International Residential Code.
(1) R102.5. Appendices: The following appendices are intended for enforcement and are made a part of this Code and the city's adopting ordinance for all intents and purposes:
Appendix AAA—Sizing and Capacities of Gas Piping
Appendix BAB—Sizing of Venting Systems Serving Appliances Equipped with Draft Hoods, Category I Appliances, and Appliances Listed for Use and Type B Vents
Appendix CAC—Exit Terminals of Mechanical Draft and Direct-Vent Venting Systems
Appendix JAJ—Existing Buildings and Structures
Appendix G—Swimming Pools, Spas and Hot Tubs
(2) R103.1. The division of central inspections is hereby created and the official in charge thereof shall be known as the building official.
(3) R103.2. Delete R103.2.
(4) R105.2. (1) is amended to addas follows:
R105.2 (1) Add “Regardless of size, accessory structures require a development permit.“
R105.2 (5) is deleted.
(5) R109.1.505. Required site surveys. Prior to inspections involving footings, foundations, concrete slabs or any item requiring under-floor inspection the building official shall require a site survey prepared by a registered professional land surveyor showing the location of placed forms to be inspected.
(7) P2602.1. Delete "if available" in the first sentence and add when public water and sewer is within 300 feet of the property.The first and second paragraphs are amended to read “The water-distribution system of any building or premises where plumbing fixtures are installed shall be connected to a public water supply. Where a public water-supply system is not available within 300 feet of the property boundary, or connection to the supply is not feasible, an individual water supply shall be provided. Individual water supplies shall be constructed and installed in accordance with the applicable state and local laws. Where such laws do not address the requirements set forth in NGWA-01, individual water supplies shall comply with NGWA-01 for those requirement s not addressed by state and local laws.
Sanitary drainage piping from plumbing fixtures in buildings and sanitary drainage piping systems from premises shall be connected to a public sewer. Where a public sewer is not available within 300 feet of the property boundary, the sanitary drainage piping and systems shall be connected to a private sewage disposal system in compliance with state or local requirements. Where state or local requirements do not exist for private sewage disposal systems, the sanitary drainage piping and systems shall be connected to an approved private sewage disposal system that is in accordance with the International Private Sewage Disposal Code.”
(Code 1961, § 9.02.09; Ord. No. 2002-08, 3-5-2002; Ord. No. 2004-08, 3-23-2004; Ord. No.
2006-02, 1-3-2006; Ord. No. 2006-23, § R109.1.05, 10-3-2006; Ord. No. 2011-50, § 3, 8-16-
2011; Ord. No. 2016-43, § 2(Exh. A), 9-20-16; Ord. No. 2017-43, § 2(Exh. A), 11-21-2017; Ord.
No. 2019-50 , § 2(Exh. A), 9-17-2019)
Sec. 12-27. - Amendments to International Property Maintenance Code.
The International Property Maintenance Code shall be amended as follows:
(3) Section 103.5.104 Delete Section 103.5104.
(4) Section 106.4109.4 amended to read:
106.4109.4 Violation penalties. Any person who violates a provision of this code or fails to comply with any of the requirements thereof or who erects, constructs, alters, repairs or occupies a building or structure in violation of the approved construction documents or directive of the building official, or of a permit or certificate issued under the provisions of this code, shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine not exceeding $2,000.00.
(5) Section 107.1111.4 amended to read:
Section 107.1111.4. Last sentence should read: Whenever the code official determines that there has been a violation of this code or has grounds to believe that a violation has occurred, notice shall be given in the manner prescribed Notices for condemnation procedures shall comply with in Section 12-61 62 of the Code of Ordinances.
(6) Section 111.4.1 and 111.4.2. Delete Sections 111.4.1 and 111.4.2.
(67) Section 110.1113.1 is amended to read:
110.1113.1. When a building is to be demolished, it shall be done so in accordance with Section 12-61 66 of the Huntsville Code of Ordinances.
(78) Section 111 107 Means of Appeal amended to read:
Section 107 Means of Appeal. Any person shall have the right to appeal a decision of the
code official to the board of adjustments and appeals in accordance with the provisions defined by the International Building Code section 113, the International Building Code Appendix G B
and as amended therein Section 12-20 (6) of this code. 111.1 Application for appeal. Any person directly affected by a decision of the code official or a notice or order issued under this code shall have the right to appeal to the Board of Adjustments and Appeals, provided that a written application for appeal is filed within 15 days after the day the decision, notice or order was served. An application for appeal shall be based on a claim that the true intent of this code or the rules legally adopted thereunder have been incorrectly interpreted.
(9) Section 108. Delete 108.
(8) Section 111.2 through 111.8. Delete 111.2 through 111.8.
(910) Section 302.4. Add 10 inches to jurisdiction height.
Section 302.2. Grading and drainage. All premises, including driveway approaches and associated appurtenances shall be graded and maintained to prevent the erosion of soil and to prevent the accumulation of stagnant water thereon, or within any structure located thereon.
Exception: Approved retention areas and reservoirs.
Section 302.3 Sidewalks and driveways. All sidewalks, walkways, stairs, driveways, driveway approaches and associated appurtenances, parking spaces and similar areas shall be kept in a proper state of repair, and maintained free from hazardous conditions.
(1011) Section 302.10. Add Section 302.10.
(1112) Add Section 302.11. Section 302.11 Tire Storage and Disposal.
(Code 1961, § 9.02.11; Ord. No. 2002-08, 3-5-2002; Ord. No. 2006-25, § 9.02.11, 10-6-2006; Ord. No. 2011-50, § 3, 8-16-2011; Ord. No. 2015-24, § 2(Exh. A), 7-7-2015; Ord. No. 2017-43,
§ 2(Exh. A), 11-21-2017; Ord. No. 2019-02 , § 2(Exh. A), 11-20-2018)
Sec. 12-30. - Amendments to International Existing Building Code.
(1) Section 103. Section 103 is deleted.
(2) Section 108 is amended as follows:
108.2 Schedule of permit fees. Permit fees shall be as established by ordinance from time to time.
108.5 Refunds. The code official shall not authorize the refunding of any fee paid except upon written application filed by the original permittee not later than 180 days after the date of fee payment. No refund will be authorized once work has commenced under the permit.
(3) Section 112. Amend section 112, Appeals, to read:
Section 112 Means of Appeal. Any person shall have the right to appeal a decision of the code official to the board of adjustments and appeals in accordance with the provisions defined by the International Building Code section 113, the International Building Code Appendix B and as amended therein Section 12-20 (6) of this code.
(4) Section 113.3. Delete section 113.3.
(5) Section 113.4. is amended as follows:
113.4 Violation penalties. Any person who violates a provision of this code or fails to comply with any of the requirements thereof or who erects, constructs, alters, repairs or occupies a building or structure in violation of the approved construction documents or directive of the building official, or of a permit or certificate issued under the provisions of this code, shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine not exceeding $2,000.00.
(6) Section 115.3 amended to read:
Section 115.3. Whenever the code official determines that there has been a violation of this code or has grounds to believe that a violation has occurred, notice shall be given in the manner prescribed in Section 12-62 of the Code of Ordinances.
(7) Section 117.1 is amended to read:
117.1. When a building is to be demolished, it shall be done so in accordance with Section 12-66 of the Huntsville Code of Ordinances.
(8) Section 202. Amend section 202, Definitions, to change or add the following definitions:
Code Official: The city's building official.
Secs. 12-3012-31—12-59. - Reserved.
Agenda Item # 3d
Item/Subject: Consider adopting Ordinance 2021-26 amending the Huntsville Code of Ordinances,
specifically Chapter 20, Fire Prevention and Protection
Initiating Department/Presenter: Public Safety
Presenter: Greg Mathis, Fire Chief
Recommended Motion: Motion to approve Ordinance 2021-26 amending the Huntsville Code of
Ordinances, specifically Chapter 20, Fire Prevention and Protection as reflected in exhibit A.
Strategic Initiative: Goal #7 - Public Safety - Provide safety and security for all citizens.
Discussion: The International Fire Code is part of the group of International Codes considered for
adoption. The City of Huntsville Code of Ordinances Chapter 20 is titled Fire Prevention and Protection.
The requested Ordinance adoption and amendments to Chapter 20 are an effort to clean up,
reorganize, and add clarification to the duties and abilities of the Fire Department. Language has been
added that includes the Building Official in areas of the Ordinance where not previously included such
as enforcement and right of entry. This will aide us as we continue to work closely together as a code
enforcement organization. Currently in Chapter 20 there is an amendment that addresses fire
apparatus access roads and the way they are painted and marked. The Ordinance is a bit unclear on the
use of signage, so I have added language to clarify that for our customers. The Huntsville Fire
Department has issued residential burning permits for many years. These permits are designed for the
homeowner to clean up and dispose of yard debris by burning. These residential permits inform the
resident of the requirements and steps to follow to burn safely, are free of charge and available on the
City Website. The State of Texas regulates commercial burning operations as reflected in Title 30 of the
Texas Administrative Code section 106.496. I have proposed that individuals wanting to conduct a
commercial burning operation go to the same website and fill out some basic information on the state
burning permit. This no fee permit will have several functions. It will give the customer an opportunity
to review and be informed of the State guidelines for commercial trench burning operations. This
permit will also be available to the fire department as needed and we will retain the ability to perform
site inspections as necessary. This process will help commercial trench burning operators to be informed, conduct operation safely and help to eliminate some of the public impact of these types of
operations.
On August 18, 2021, the Board of Adjustments and Appeals met and held a public hearing. Staff gave
the Board a presentation outlining the proposal to recommend the adoption of the 2021 edition of the
International Codes which includes the Fire Code. A unanimous vote was received in support of the
amendments and revisions to Chapter 20 of the City of Huntsville Code of Ordinances.
9/21/2021
Agenda Item: 3d
CITY COUNCIL AGENDA
Agenda Item # 3d
Previous Council Action:
• December 21, 2017, Council adopted the 2015 edition of the International Codes and amended
Chapter 20 of the Code of Ordinances to reflect accurately.
Financial Implications: There is no financial impact associated with this item.
Approvals: ☐City Attorney ☐Director of Finance ☒City Manager
Associated Information:
• Ordinance 2021-26
• Exhibit A
ORDINANCE NO. 2021-26 AN ORDINANCE AMENDING THE CITY OF HUNTSVILLE, TEXAS CODE OF ORDINANCES, SPECIFICALLY CHAPTER 20 “FIRE PREVENTION AND PROTECTION”; PROVIDING FOR A PENALTY; MAKING OTHER PROVISIONS AND FINDINGS THERETO; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, the Huntsville Code of Ordinances, Chapter 20 “FIRE PREVENTION AND PROTECTION” provides for regulations for fire prevention and protection for residential and commercial buildings for the health, safety and public welfare of the City’s residents: WHEREAS, the City of Huntsville, as a home rule city may regulate this activity pursuant to its broad powers of self-government; and WHEREAS, City Council finds it necessary to amend its existing regulations of these activities
to protect the health and public safety; now therefore
WHEREAS, the City Council of the City of Huntsville, Texas now wishes to amend Chapter 20 to help promote the health, safety and welfare of its residents. WHEREAS, notice of the agenda for this meeting, was given in accordance with law by
posting the same at the place reserved and designated for notices of public meetings and public activities and prior to the adoption of this ordinance. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE,
TEXAS, that:
SECTION 1: The facts and matters set forth in the preamble of this Ordinance are found to be true and correct and are hereby adopted, ratified, and confirmed. SECTION 2: Huntsville Code of Ordinances Chapter 20 “FIRE PREVENTION AND
PROTECTION” is hereby amended by amending Sections 20-1 and 20-2 and amending re-numbering 20-3 of Article 1 “General” as shown in the Exhibit “A” attached hereto and adopted for all purposes.
SECTION 3: Huntsville Code of Ordinances Chapter 20 “FIRE PREVENTION AND
PROTECTION” is hereby amended by deleting Sections 20-29 and 20-30 and/or amending and re-numbering sections 20-27, 20-28, 20-31, 20-32 and 20-33 of Article II “Fire Marshal” as shown in the Exhibit “A” attached hereto and adopted for all purposes. SECTION 4: Huntsville Code of Ordinances Chapter 20 “FIRE PREVENTION AND
PROTECTION” is hereby amended by deleting Section 20-58 and amending sections 20-55, 20-57 and adding sections 20-58 thru 20-63, of Article III “Enforcement” as shown in the Exhibit “A” attached hereto and adopted for all purposes.
SECTION 5: All ordinances or parts of Ordinances that are in conflict or inconsistent with the provisions of this Ordinance shall be, and the same are hereby, repealed and all other ordinances of the City not in conflict with the provisions of this Ordinance shall remain in
full force and effect.
SECTION 6: Should any paragraph, sentence, clause, phrase or section of this Ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this Ordinance as a whole or any part or provision thereof, other than the part so declared to be invalid, illegal or unconstitutional.
SECTION 7: This Ordinance, being a penal ordinance, becomes effective ten (10) days after its date of passage by the City Council, as provided by Article 4.14 of the Charter of the City of Huntsville, Texas.
First Reading Date: __________________ PASSED AND APPROVED on the Second Reading on this the ____th day of ____________2021. THE CITY OF HUNTSVILLE ___________________________________ Andy Brauninger, Mayor ATTEST: APPROVED AS TO FORM: ___________________________ ___________________________ Kristy Doll, City Secretary Leonard Schneider, City Attorney
EXHIBIT A Chapter 20 - FIRE PREVENTION AND PROTECTION ARTICLE I. - IN GENERAL Sec. 20-1. - International Fire Code—Adopted. The book entitled , "International Fire Code, 2015 Edition 2021 Edition a copy of which, authenticated by the signatures of the mayor and the city secretary, and is on file in the city secretary's office with signatures, is hereby adopted as the fire prevention code of the city as fully as if copied at length in this chapter, and the provisions thereof shall be controlling in the storage, use or handling of hazardous materials, substances or devices, and in the repair, equipment, use,
occupancy, and maintenance of every existing building or structure within the city.
Sec. 20-2. - Same—Amendments. The following provisions of the International Fire Code are adopted, amended, or modified for purposes of administration of the Code in the city:
(1) Section 108 is changed in its entirety to read: In order to have an appeal to any order, decision or determinations made by the Fire Official, the appeal request shall be heard by the board of adjustments and appeals in accordance with the provisions defined by the International Building Code section 113, the International Building Code Appendix G and as amended therein Section 12-20(6) of the code of ordinances. Section 103.1 shall have Huntsville Fire Department inserted as the Code Compliance agency
(2) Sections 103.1 through 103.3, Administration, are deleted. Section 111 is changed in
its entirety to read: In order to have an appeal to any order, decision or determinations made by the Fire Official, the appeal request shall be heard by the board of adjustments and appeals in accordance with the provisions defined by the International Building Code section 113, the
International Building Code Appendix B and as amended therein Section 12-20(6) of the code of ordinances.
(3) Section 307.6 is added to read:
307.6 Open flame cooking devices shall be prohibited on balconies of multiple-family dwellings and single-family rental dwellings of two or more stories in height and shall be prohibited within ten feet of the building of multiple-family dwellings or
single-family rental dwellings regardless of number of stories in height.
Section 308.1.4 is added to read:
308.1.4 Open flame cooking devices shall be prohibited on balconies of multiple-family dwellings and single-family rental dwellings of two or more stories in height and shall be prohibited within ten feet of the building of multiple-family dwellings or single-family rental dwellings regardless of number of stories in height.
(4) Section 503.3 is hereby amended to read:
503.3 Marking. Where required by the fire code official, approved signs installed in accordance with "appendix D" of this code or permanent striping painted on the curb or
edge of the paved access shall be provided for fire apparatus access roads to identify such roads or prohibit the obstruction thereof. Signs or striping shall be maintained in a clean and legible condition at all times and be replaced or repaired when necessary to provide adequate visibility. Signs shall have the words, ‘NO PARKING - FIRE LANE – TOW AWAY” and spaced every 40 feet. This spacing may be adjusted with the approval of the fire code official. Striping shall consist of a minimum six inch (6") wide red background stripe applied the full length on each side of the fire access road and shall be marked at each end and at least every 20 feet with minimum four inch (4") high white letters stating, "NO PARKING - FIRE LANE - TOW AWAY."
(5) Appendix D, Fire Apparatus Access Roads, is adopted.
(6) Section 105 is deleted.Section 603.5.2 Application and use of relocatable power taps delete exemption 1 and 2
(7) Section 113 is deleted.
Sec. 20-3 moved to Article III and re-numbered 20-58
Secs. 20-3—20-24. - Reserved.
ARTICLE II. - FIRE MARSHAL
Secs. 20-27, 20-28 moved to Article III and re-numbered 20-59 and 20-60
Sec. 20-29. - Authority to summon witnesses and order production of documents.
The fire marshal shall have the power to summon witnesses before him to testify in relation to any fire or other matter which is, by the provisions of this article, a
subject of inquiry and investigation, and may require the production of any paper, book or document deemed pertinent thereto.
Sec. 20-30. - Investigations may be private; sequestering witnesses.
All investigations held by or under the direction of the fire marshal may, in his discretion, be private and persons other than those required to be present may be excluded from the place where such investigation is held. Witnesses may be kept separate and apart from each other and not allowed to communicate with each other until they have been examined.
Secs. 20-31, 20-32, and 20-33 moved to Article III and re-numbered 20-61, 20-62 and 20-63
Secs. 20-27—20-54. - Reserved.
ARTICLE III. - ENFORCEMENT Sec. 20-55. - Inspection of mercantile, manufacturing, and public buildings. It shall be the duty of the fire marshal to enter upon and make, or to cause to be entered upon and made, annually or more often a thorough examination of all business mercantile, manufacturing and public buildings, together with the premises belonging thereto. The city
building official and fire marshal shall be responsible for the enforcement of the fire code of the city in each instance where such code calls for action by the fire marshal, fire chief in the adopting ordinance for such fire code.
It shall be the duty of the Fire Chief/Fire Marshal or designee to enter upon and make, or to cause to be entered upon and made, annually or more often a thorough examination of all
business mercantile, manufacturing, and public buildings, together with the premises belonging thereto. The Fire Chief/ Fire Marshal and the City Building Official shall be responsible for the enforcement of the fire code of the city in each instance where such code calls for action by the
Fire Chief/ Fire Marshal.
Sec. 20-57. - Right of entry. The city building official and fire marshal, each separately, shall have the authority, at all times of day or night, when necessary in the performance of the duties imposed upon him by the provisions of this chapter, to enter upon and examine any building or premises where any fire has occurred and other building or premises adjoining or near the same, which authority shall be
exercised only with reason and good discretion.
The city Fire Chief/Fire Marshal and or the Building Official, each separately, shall have the authority, at all times of day or night, when necessary in the performance of the duties imposed
upon him by the provisions of this chapter, to enter upon and examine any building or premises where any fire or other emergency has occurred and other building or premises adjoining or near the same to establish the safety of the building and its occupants. This authority shall be exercised
only with reason and good discretion.If access is denied or removed, an administrative search warrant may be requested through the court and or legal processes. The search warrant should be justified by a showing of reasonable governmental interest, and supported by a statute, ordinance, or regulation. If a valid public interest justifies the intrusion, then a valid and reasonable probable cause has been demonstrated.
Sec. 20-58. Warrants. For the purpose of search warrants issued under Vernon's Ann. C.C.P. art. 18.05, the city
building official shall be the code enforcement officer for the city.
Sec. 20-3 20-58 - Outdoor burning; when permit required; duties of Fire Chief/Fire
Marshal; fees; penalty for violation.
(a) It shall hereafter be unlawful for any person to burn any unprocessed natural vegetation within the corporate limits of the city unless such person first obtains a residential burning permit from the Fire Chief/Fire Marshal. Such unprocessed natural material shall include limbs, brush, and grass clippings and shall not include materials such as and including garbage, dead animals, asphalt, petroleum products, paints, plastics, paper, cardboard, treated lumber, construction/demolition debris or any product that emits toxic emissions, dense smoke or obnoxious odors. Even if a burn permit is issued for burning, no burning will be allowed within the city limits during any period in which a determination has been made by the County Judge that burning within the county poses an imminent safety risk or threatens the health and welfare of the citizens or by the Fire Chief/ Fire Marshal that burning within the city poses an imminent safety risk or threatens the health and welfare of the citizens
of the city (commonly referred to as a "burn ban"). Any burn permit for burning shall be suspended during any period in which a burn ban is in effect, and it shall be unlawful for any person to burn any unprocessed natural vegetation within the corporate limits of the city
during any period in which a burn ban is in effect.
(2) Burning on property as part of a land clearing operation will be done by trench burning under the conditions set out in Title 30 Texas Administrative Code § 106.496, as
amended from time to time. The term "land clearing operation" means the uprooting, cutting, or clearing of vegetation in connection with conversion for the construction of buildings, rights-of-way, residential, commercial, or industrial development, or the clearing of vegetation to enhance property value, access or production. The TECQ permit for trench burning is located on the Fire Department website and must be completed prior to the burning operation. The burn site is then subject to the guidelines stated in the permit and is also subject to inspection by the Fire Chief/Fire Marshal or designee. The Fire Chief/ Fire Marshal or designee may direct the burn operation be terminated if the conditions of the permit are not followed or a hazardous or nuisance condition is being created.
(4) It shall be unlawful for any person to burn combustible material in a manner inconsistent or contrary to the conditions and regulations contained in the permit.
(c) Any person violating the terms of this chapter shall, upon conviction, be deemed guilty of a class C misdemeanor and, upon conviction, shall be punished as provided in section 1-11.
Sec. 20-27. 20-59- Investigation of fires. The Fire Chief/ Fire Marshal or designee shall investigate the cause, origin and circumstances of every fire occurring within the city by which property is destroyed or damaged and shall especially make investigation as to whether such fire was the result of carelessness or design. Such investigation shall commence within 24 hours, not including Sunday, of the
occurrence of such fire as soon as reasonable possible after the occurrence of such fire. If access is denied or removed, an administrative search warrant may be requested through the court and
or legal processes. The search warrant should be justified by a showing of reasonable governmental interest, and supported by a statute, ordinance, or regulation. If a valid public interest justifies the intrusion, then a valid and reasonable probable cause has been
demonstrated. The Fire Chief/ Fire Marshal or designee may also during any fire investigation, may be responsible for locating, collecting, identifying, storing, examining, and arranging for the testing of physical evidence. The fire investigator should be familiar with the recommended and
accepted methods of processing such physical evidence.
(Code 1961, § 12.02.03; Ord. of 10-5-1915, § 2)
Ordinance No. ________ Fire Prevention and Protection Page 7
Sec. 20-28.20-60 - Taking of testimony in investigation of fire. The Fire Chief/Fire Marshal or designee shall have the power to summon witnesses before
him to testify in relation to any fire or other matter which is, by the provisions of this article, a subject of inquiry and investigation and may require the production of any paper, book or document deemed pertinent thereto.. The Fire Chief/Fire Marshal, or designee when in his opinion further investigation of a fire is necessary, shall take or cause to be taken the testimony, on oath, of all persons supposed to be cognizant of any facts or to have means of knowledge in relation to the matter under investigation, and shall cause the same to be reduced to writing. According to NFPA 921, the Fire Chief/Fire Marshal or designee, is hereby authorized to advise the person being questioned of his or her Miranda rights. Those questioned may also be advised if the questioning is being conducted in a custodial environment which may or may not be on the
fire scene, depending on the circumstances.
Sec. 20-31 20-61. - Offenses by witnesses summoned by Fire Chief/ Fire Marshal
Any witness who refuses to be sworn or who refuses to appear and testify, or who disobeys any lawful order of the Fire Chief/Fire Marshal, or who fails and refuses to produce any book, paper or document touching any matter under examination, or who is guilty of any contemptuous
conduct during any of the proceedings of the Fire Chief/Fire Marshal during any investigation or inquiry, after being summoned to give testimony in relation to any matter under investigation, shall be deemed guilty of a misdemeanor and it shall be the duty of the Fire Chief/Fire Marshal to cause
all such offenders to be prosecuted.
Sec. 20-32. 20-62.- Duty when evidence sufficient to charge person with crime in connection with fire. If, after an investigation of a fire as provided for in this article, the Fire Chief/Fire Marshal is of the opinion that there is evidence sufficient to charge any person with the crime of arson, or with an attempt to commit the crime of arson, or of conspiracy to defraud, or criminal conduct in connection with such fire, he shall cause such person to be lawfully arrested and charged with
such offense, or either of them, and shall furnish to the proper prosecuting attorney all such evidence, together with the names of the witnesses and all information obtained by him, including a copy of all pertinent and material testimony taken in the case.
Sec. 20-33 20-63. - Record of fires to be kept. The Fire Marshal shall keep a record of all fires occurring within the city by which property is
destroyed or damaged, together with all facts, statistics, and circumstances, including the origin of the fire and the amount of the loss, which may be determined by the investigation required by this article.
Secs. 20-64—20-80. - Reserved.
Item/Subject: Consider passage of Ordinance 2021-27 to adopt the Fiscal Year 2021-2022 Budget.
Record/rollcall vote required
Initiating Department/Presenter: Finance
Presenter: Steve Ritter – Finance Director
Recommended Motion: Move to pass Ordinance 2021-27 to adopt the Fiscal Year 2021 – 2022 Budget
with all policies, fees, rates, and provisions as referenced therein. Record/rollcall vote required
Strategic Initiative: Goal #6 - Finance - Provide a sustainable, efficient and fiscally sound government
through conservative fiscal practices and resource management.
Discussion: This Fiscal Year 2021 – 2022 Budget is presented to Council for approval after six months
of preparation by staff, the City Manager’s recommended budget provided to Council on August 13th,
a presentation to Council on July 20th, communication with the Finance Committee on Fiscal and
Budgetary Policies, and a Public Hearing on the Budget on September 7th. Also, Decision Packages
were presented for approval and approved at the September 7, 2021 meeting. This budget has been
prepared using a Property Tax Rate of $0.3075.
Previous Council Action: None
Financial Implications: ☐There is no financial impact associated with this item. ☒Item is budgeted: Fiscal Year 2021 – 2022 Budgets for all City Funds
Approvals: ☐City Attorney ☒Director of Finance ☐City Manager
Associated Information:
• Ordinance 2021-27 - pgs. 2 – 3
• Required State Truth in Taxation statement - pg. 4
• Exhibit A – FY 21- 22 Fund Revenues, Expenditures, and Projected Balances - pg. 5
• Exhibit A1 – FY 21-22 CIP Projects - pg. 6
• Exhibit B - FY 21-22 Fiscal and Budgetary Policies - pages 7 through 23
• Exhibit C - FY 21-22 Investment and Banking Policies - pages 24 through 59
• Exhibit D - FY 21-22 Fee Schedule - pages 60 through 77
• Exhibit E - Tax Rate Calculation Worksheet (required by SB-2) – pages 78 through 95
9/21/2021
Agenda Item: 4a
CITY COUNCIL AGENDA
ORDINANCE NO. 2021-27
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, FINDING THAT ALL THINGS REQUISITE AND NECESSARY HAVE BEEN DONE IN PREPARATION AND PRESENTMENT OF AN ANNUAL BUDGET; APPROVING AND ADOPTING THE OPERATING AND CAPITAL IMPROVEMENTS BUDGET FOR THE CITY OF HUNTSVILLE, TEXAS, FOR THE PERIOD OCTOBER 1, 2021, THROUGH SEPTEMBER 30, 2022; RATIFYING AND APPROVING FISCAL AND BUDGETARY POLICIES; RATIFYING AND APPROVING THE INVESTMENT AND BANKING POLICIES; RATIFYING AND APPROVING VARIOUS FEES, RATES AND CHARGES; AND PROVIDING FOR AN EFFECTIVE DATE HEREOF.
WHEREAS more than thirty days before the end of the City’s fiscal year and more than thirty days before the adoption of this ordinance, the City Manager of the City Huntsville, Texas, submitted a proposed budget for the ensuing fiscal year according to Section 11.05 of the Charter of the City of Huntsville, Texas, and Texas Local Government Code Section 102.005; and
WHEREAS the City Manager filed a copy of the proposed budget with the City Secretary and the budget was available for public inspection at least fifteen days before the budget hearing and tax levy for the fiscal year 2021-2022 [Texas Local Government Code § 102.006]; and WHEREAS the itemized budget shows a comparison of expenditures between the proposed budget and the actual expenditures for the same or similar purposes for the preceding year and the estimated amount of money carried for each [Texas Local Government Code § 102.003(a)]; and WHEREAS the budget contains financial information of the municipality that shows the outstanding
obligations of the City, the available funds on hand to the credit of each fund, the funds received from all sources during the preceding year; the funds available from all sources during the ensuing year; the estimated revenue available to cover the proposed budget; and the estimated tax rate required to cover the proposed budget [Texas Local Government Code § 102.003(b)];
and WHEREAS notification has been provided to the public concerning the public hearing for the fiscal year 2021 - 2022 budget [Texas Local Government Code § 102.0065]; and WHEREAS the budget for the year October 1, 2021, through September 30, 2022, has been presented to the City Council, and the City Council has held a public hearing with all notice as required by law, and all comments and objections have been considered; and WHEREAS the fees, rates and charges set out herein are reasonable and necessary and are established and set in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, that:
SECTION 1: City Council adopts the budget for the City of Huntsville, Texas, now before the City Council for consideration and attached, as the budget for the City for the period of October 1, 2021, through September 30, 2022.
SECTION 2: The appropriation for the ensuing fiscal year for operating expenses, debt service and capital outlay budgets shall be fixed and determined as shown in Exhibit A and by reference to the Fund Summaries with account classification totals in the City Secretary’s office.
SECTION 3: New projects described for fiscal year 2021-2022 in the Capital Improvements budget portion of the 2021-2022 budget are approved at the cost level indicated, subject to the availability of funding of project costs (Exhibit A1).
SECTION 4: City Council approves the monthly payment for an eligible employee to the City’s Medical Insurance Internal Service Fund of $850.00 per month ($10,200.00 annually), per employee electing coverage.
SECTION 5: City Council approves a budgeted TMRS rate established according to TMRS rates for the benefit levels elected by the City.
SECTION 6: City Council approves a transfer of an amount equal to four (4.0%) percent of the gross revenues received during Fiscal Year 2021-2022 from all water, wastewater, and solid waste customers,
as a transfer to the General Fund to compensate the City for the use of streets and rights-of-way by the Water, Wastewater, and Solid Waste Funds.
SECTION 7: City Council hereby has reviewed and approves the Fiscal and Budgetary, and Purchasing Policies (Exhibit B).
SECTION 8: City Council approves fees, rates, charges and their associated revenue, which is incorporated into the budget; Exhibit D.
Exhibit D authorizes water rate increases as noted for volumetric rates.
SECTION 9: City Council has reviewed and approves the investment policies, strategies, and the Investment and Banking Policies and Investment Policy Statement for the Post-Employment Benefit Plan (Exhibit C).
SECTION 10: The City Secretary is directed to maintain a copy of the adopted budget, to file a copy of it with the City Library and the County Clerk, and to publish a notice saying the budget is available for
public inspection [Texas Local Government Code §§ 102.008 and 102.009(d)].
SECTION 11: Council may amend this budget from time to time as provided by law for the purposes of authorizing emergency expenditures or for municipal purposes, provided, however, no obligation shall be incurred or any expenditure made except in conformity with the budget [Texas Local Government Code §§ 102.009-102.011; Huntsville City Charter §§ 11.06-11.07].
SECTION 12: The City Manager may, within the policies adopted within this budget, authorize transfers
between budget line items; City Council may transfer any unencumbered appropriated balance or portion of it from one office, department, or agency to another at any time, or any appropriation balance from one expenditure account to another within a single office, department, or agency of the City [Huntsville City Charter §11.06.].
SECTION 13: City Council expressly repeals all previous budget ordinances and appropriations if in conflict with the provisions of this ordinance. If a court of competent jurisdiction declares any part,
portion, or section of this ordinance invalid, inoperative, or void for any reason, such decision, opinion, or judgment shall in no way affect the remaining portions, parts, or sections, or parts of a section of this ordinance, which provisions shall be, remain, and continue to be in full force and effect.
SECTION 14: This ordinance shall take effect immediately after its passage.
PASSED AND APPROVED on this, the 21st day of September 2021.
THE CITY OF HUNTSVILLE, TEXAS
Andy Brauninger, Mayor ATTEST: APPROVED AS TO FORM: Kristy Doll, City Secretary Leonard Schneider, City Attorney
City of Huntsville, Texas
Annual Operating Budget for Fiscal Year 2021-2022
This budget will raise more total revenue from property taxes than last
year’s budget by $504,750 (7.36%), and of that amount $216,110
(3.15%) is property tax revenue to be raised from new property added
to the tax roll this year. Record vote on adopting the FY 21-22 Budget: Councilmember Name Position Vote (Yes/No) Andy Brauninger Mayor Daiquiri Beebe Ward 1 Russell Humphrey Ward 2 Blake Irving Ward 3 Joe P. Rodriquez Ward 4 Bert Lyle Position 1 at Large Dee Howard Mullins Position 2 at Large Vicki McKenzie Position 3 at Large Pat Graham Position 4 at Large Property Tax Rate Information: Fiscal Yr 21-22 Fiscal Yr 20-21 Tax Rate adopted $0.3075 $0.3062 No-New-Revenue Tax Rate $0.2975 $0.3062 No-New-Revenue M&O Tax Rate $0.2382 $0.2319 Debt Rate $0.0593 $0.0663 Voter-Approval Tax Rate $0.3392 $0.3342 City Debt Obligations secured by property taxes $44,620,000
Exhibit ACity of HuntsvilleFund Revenues, Expenditures and Projected BalancesFY 2021 - 2022FY 2021-2022FundFund NameEstimated 09/30/21 Unallocated ReserveRevenuesAdminReimb InTrans InTotalRevenueExpendituresAdminReimb OutTrans OutTransferto Cap ExpOne Time EquityTotal ExpEstimated 09/30/22 Unallocated ReserveFund Name101 General Fund10,258,000 21,342,530 5,870,558 1,461,622 28,674,710 26,838,8771,360,833 475,000 28,674,710 1,375,943 30,050,653 8,882,057Debt Service116 Debt Service Fund330,280 1,472,600- 951,550 2,424,150 2,393,113--- 2,393,113- 2,393,113 361,317Enterprise220 Utility Fund7,808,000 28,489,775 48,358- 28,538,133 17,536,512 4,977,688 2,229,063 3,794,870 28,538,133 342,647 28,880,780 7,465,353224 Solid Waste Fund2,650,000 6,550,500-- 6,550,500 4,819,471 873,894 853,2376,546,602 321,621 6,868,223 2,332,277Internal Service302 Medical Insurance Fund3,410,000 4,179,804-4,179,804 4,343,837--- 4,343,8374,343,837 3,245,967306 Capital Equipment Fund4,214,037- 1,545,157 1,545,157 1,162,750--- 1,162,7501,162,750 4,596,444309 Computer Equip. Replacement Fund438,919-- 282,106 282,106 459,333--- 459,333459,333 261,692Special Revenue601 Court Security SRF59,800 22,00022,000-- 26,617- 26,61726,617 55,183602 Court Technology SRF93,100 22,000-- 22,000 61,079--- 61,07961,079 54,021609 Airport SRF63,500 43,250- 39,900 83,150 83,150--- 83,15083,150 63,500610 Library SRF142,755 5,700-- 5,700 41,545--- 41,545- 41,545 106,910611 Police Seizure & Forfeiture SRF243,005--- 241,900--- 241,900- 241,900 1,105612 PD School Resource Officer SRF169,300 615,432- 147,709 763,141 728,921- 30,747- 759,668 9,622 769,290 163,151613 PD Fed Equitable Sharing Fds SRF79,300---- 73,139--- 73,13973,139 6,161614 Police Grants SRF24,030- 24,030619 LEOSE SRF30,750-- 26,00026,00026,000 4,750625 Huntsville Beautification/KHB19,000----------- 19,000630 TIRZ #1 Fund41,100 172,200-- 172,200------ 213,300665 Hotel/Motel Tax - Statue Contrib69,500----------- 69,500Hotel/Motel Tax618 Arts & Visitor Center SRF121,400 108,052- 85,954 194,006 194,006--- 194,006 33,689 227,695 87,711663 H/M Tax- Tourism & Visitors Cntr 668,800 646,105-646,105 567,270 67,334 11,501- 646,105 23,686 669,791 645,114Endowment402 PEB Trust - Medical Fund5,581,800 50,000-- 50,000 20,000-- 20,000- 20,000 5,611,800418 Library Endowment Fund118,959----------- 118,959461 Oakwood Cemetery Endowment Fund390,320 2,000-- 2,000-- 2,000- 2,0002,000 390,320-037,025,655 63,721,948 5,918,916 4,513,998 74,154,862 59,590,903 5,918,916 4,513,998 4,269,870 74,293,687 2,107,208 76,400,895
Exhibit A1 FY 2021-2022
Utility CIP Amount Funding Sources
Miscellaneous Waterline Replacements (Birmingham - (Ave J to Ave H), University - (7th St.
to Thomason), Thomason (FM 247 to University Ave) $ 700,000 Utility Fund
14th Street ( I to G) Replace 8" + Ave I (12th to 14th) Replace 10" $ 400,000 Utility Fund
Water production / Pipe Storage $ 250,000 Utility Fund
1502 Sam Hou Ave to 1412 Sam Hou Ave - Wastewater Line $ 114,870 Utility Fund
608 Sam Hou Ave to 505 Ave M - Wastewater Line $ 75,000 Utility Fund
16th St (Sam Hou Ave to Ave M) - Wastewater Line $ 100,000 Utility Fund
1726 Ave Q to 1711 Ave R (MH 1936 to MH 1939) - Wastewater Line $ 75,000 Utility Fund
Sowell/gospel Hill Intersection to 98 Smith Hill - Wastewater Line $ 300,000 Utility Fund
1798 Smith Hill to Roosevelt/Mary Int - Wastewater Line $ 260,000 Utility Fund
14th & Ave I - Realign and Upsize Wall Unit Sewer - Wastewater Line $ 120,000 Utility Fund
500 to 546 Normal Park Dr (Behind townhomes) - Wastewater Line $ 100,000 Utility Fund
Wastewater Masterplan & Model Updates $ 150,000 Utility Fund
Debt Service on Utility Fund Revenue Bonds $ 1,000,000 Utility Fund
18" Storm Sewer Replace on 17th (Ave M to Sam Hou) - Drainage $ 100,000 Utility Fund
Open Ditch lining improvements - Drainage $ 50,000 Utility Fund
TOTAL - Utility Fund CIP 3,794,870$
General - CIP Amount Funding Sources
Bleacher Cover KBR Field #10 & 11 60,000$ General Fund
New Sports Complex Feasibility Study 100,000$ General Fund
Eastham Thomason Park Improvemnets 40,000$ General Fund
Miscellaneous Sidewalk Improvements 50,000$ General Fund
Furniture, Fixtures and Equipment for MLK Community Center 100,000$ General Fund
Update Development District Map 125,000$ General Fund
Total General CIP $ 475,000
Total Sources Summary Amount
Utility Fund Contributions 3,794,870$
General Fund Contributions 475,000$
21-22 Total Sources of Funds 4,269,870$
City of Huntsville
FY 2021-2022 Capital Funding Additions and Sources
Exhibit B FY 21-22
1
Fiscal and Budgetary Policies I. STATEMENT OF PURPOSE The purpose of the Fiscal and Budgetary Policies is to identify and present an overview of policies dictated by state law, the City Charter, City ordinances, and administrative policies. The aim of these policies is to achieve long-term stability and a positive financial condition. These policies provide guidelines to the administration and finance staff in planning and
directing the City's day-to-day financial affairs and in developing financial recommendations to the City Council. These policies set forth the basic framework for the overall fiscal management of the City. Operating independently of changing circumstances and conditions,
these policies assist in the decision-making process. These policies provide guidelines for evaluating both current activities and proposals for future programs.
These policies represent long-standing principles, traditions and practices which have guided the City in the past and have helped maintain financial stability. An important aspect of the policies is the application of budget and fiscal policies in the context of a long-term financial
approach. The scope of these policies span accounting, auditing, financial reporting, internal controls, operating and capital budgeting, revenue management, cash and investment management, expenditure control, asset management and debt management. The City Council and/or Finance Committee annually review and approve the Fiscal and Budgetary Policies as part of the budget process. II. BASIS OF ACCOUNTING
A. Accounting in Accordance With GAAP. The City's finances shall be accounted for in accordance with generally accepted accounting principles as established by the
Governmental Accounting Standards Board. 1. Organization of Accounts. The accounts of the City shall be organized and operated on the basis of funds. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions 2. Fund Structure. The City of Huntsville uses the following fund groups: Governmental Funds
General Fund General Obligation Debt Service Fund Capital Projects Funds
Special Revenue Funds: Municipal Court Special Revenues Library Special Revenues Airport Special Revenues Police Special Revenues Hotel/Motel Tax & Arts
Exhibit B FY 21-22
2
Proprietary Funds: Enterprise Funds:
Utility Fund (Water & Wastewater operations) Solid Waste Internal Service Funds: Medical Insurance Equipment Replacement
Computer Replacement Permanent Funds: Library Endowment Oakwood Cemetery Endowment
Trust Funds: Retiree PEB Trust –Medical Scholarship Fund Employee Assistance Fund 3. Governmental Fund Types. Governmental funds are used to account for the government's general government activities and include the General, Special Revenue, General Obligation Debt Service and Capital Project funds. Governmental fund types shall use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are “measurable and available”). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon
enough thereafter to pay liabilities of the current period. Expenditures are recognized when the related fund liability is incurred, if measurable, except for principal and interest on general long-term debt, which are recorded when due, and compensated
absences, which are recorded when payable from currently available financial resources. 4. Proprietary Fund Types. Proprietary fund types are used to account for the City’s business type activities (e.g., activities that receive a significant portion of their funding through user charges). The City has two types of proprietary funds: Enterprise Funds and Internal Service Funds. The City's Proprietary fund types are accounted for on a flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Enterprise funds receive their revenues primarily through user charges for service. Internal Service funds receive their revenues primarily from the other funds of the City.
5. Permanent Funds. The Library Endowment Fund and Oakwood Cemetery Endowment Fund are used to account for endowments received by the City. Money available for expenditures in these funds are the accumulated interest earnings.
6. Trust Funds. The PEB Trust for retirees is used to account for funds designated for use for retiree Health Insurance costs if needed. Monies in this Fund help to lessen the City’s Unfunded Accrued Actuarial Liability (UAAL) that is the result of the City
providing a health insurance benefit to certain retirees. The Employee Assistance Fund is funded by contributions from City employees and monies are used to assist employees encountering catastrophic illness (examples – cancer, vehicle accidents,
etc.) medical costs. The Scholarship Fund is also funded by contributions from
Exhibit B FY 21-22
3
employee. The monies are used to provide scholarships to graduating seniors of employees who will be continuing their education at a university, junior/community
college, or a technical school. 7. Encumbrance Accounting. The City shall utilize encumbrance accounting under
which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation. III. OPERATING BUDGET A. BUDGET PROCESS. 1. Proposed Budget. Section 11.05 of the City Charter requires that the City Manager submit to the City Council a proposed budget at least 30 days prior to the end of the fiscal year that presents a complete financial plan for the ensuing year. Public hearings shall be held in the manner prescribed by the laws of the State of Texas relating to budgets in cities and towns. The Charter requires that no budget be adopted or appropriations made unless the total of estimated revenues, income and funds available shall be equal to or in excess of such budget or appropriations. Past practice has been to present a draft budget to City Council at least six weeks prior to fiscal year end. a. The budget shall include four basic segments for review and evaluation: (1) personnel costs, (2) base budget (same level of service) for operations and maintenance costs, (3) decision packages for capital and other (non-capital) project costs, and (4) revenues.
b. The budget review process shall include City Council participation in the development of each of the four segments of the proposed budget.
c. The budget process will allow the opportunity for the City Council to address policy and fiscal issues.
d. A copy of the proposed budget shall be posted on the City’s website when it is submitted to the City Council. 2. Modified Incremental Approach. The operating budget less prior year supplemental requests, shall serve as the starting point for budget estimates. 3. Adoption. Upon the presentation of a proposed budget document to the City Council, the City Council shall call and publicize a public hearing. The City Council shall subsequently adopt by Ordinance such budget, as it may have been amended, as the City's Annual Budget, effective for the fiscal year beginning October 1.
As required by Section 11.05 of the Charter, if the City Council takes no action to adopt a budget on or prior to September 27th, the budget as submitted by the City Manager,
is deemed to have been finally adopted by the City Council.
4. Government Finance Officers Association. The annual budget shall be submitted
Exhibit B FY 21-22
4
to the Government Finance Officers Association (GFOA) for evaluation and consideration for the Distinguished Budget Presentation Award.
5. Truth in Taxation. Budget development procedures will be in conformance with State law, outlined in the Truth in Taxation process. In the event of a tax increase, at least
two notices will be given and public hearings held. B. PLANNING. Budgeting is an essential element of the financial planning, control, and evaluation process of municipal government. The budget planning process is for a five year period recognizing that budgets are influenced by decisions made in prior year budgets and that decisions made in the current year budgets serve a precursor to future budget requirements. The City shall recognize both short-term needs and objectives in relation to the long-term goals of the City. C. PREPARATION. The operating budget is the City’s annual financial operating plan. The budget includes all of the operating departments of the City, the debt service fund, all capital projects funds, internal service funds, and all special revenue funds of the City. An annual budget shall be prepared for all funds of the City, with the exception that capital projects will be budgeted on a project length basis, rather than an annual basis.
1. Basis of Budget. Operating budgets are adopted on a basis consistent with generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board, with exceptions, including that depreciation is not included in the budget, capital purchases are budgeted in the year of purchase, unmatured interest on long-term debt is recognized when due, and debt principal is budgeted in the year it is to be paid. a. Governmental Fund Types are budgeted on a modified accrual basis, with exceptions as noted above. Revenues are included in the budget in the year they are expected to become measurable and available. Expenditures are included in
the budget when they are measurable, a liability is incurred, and the liability will be liquidated with resources included in the budget.
b. Capital project budgets are project length budgets and are budgeted on a modified accrual basis.
c. Proprietary fund types are budgeted generally on an accrual basis with exceptions as noted above. Revenues are budgeted in the year they are expected to be earned and expenses are budgeted in the year the liability is expected to be incurred. The emphasis is on cash transactions in lieu of non-cash transactions, such as depreciation. The focus is on the net change in working capital. 2. Legal Level of Control. The budget shall be adopted at the “legal level of control,” which is, by Division, within individual funds. The level at which management, without prior council approval, loses the ability to reapply budgeted resources from one use to another is known as the budgets’ “legal level of control.” The City has a number of levels of detail in the operating budgets - the fund, the department, the division, the
object and the line item. Example:
Exhibit B FY 21-22
5
Fund - General Fund Department - Public Safety Division - Police Object - Salaries, Other Pay and Benefits Line Item - Regular Salaries
In the above example, the legal level of control is the budget total for the Police Division. Department Heads may not exceed budget allocations at the object code level in controllable account without City Manager approval. 3. Identify Available Funds. The budget shall be sufficiently detailed to identify all available funds. The format will include estimated beginning funds, sources of funds, uses of funds, and estimated remaining funds at budget year-end. An actual prior year, estimated current year and proposed budget shall be presented.
4. Interfund Transfers/Charges. A summary showing transfers and charges between funds will be provided during the budget process to explain the "double counting" of revenues and expenditures.
5. Periodic Reports. In compliance with Section 11.02(e) of the Charter, the City will maintain a budgetary control system to ensure adherence to the budget and will prepare periodic reports comparing actual revenues, expenditures and encumbrances with budgeted amounts.
6. Self Sufficient Enterprise Funds. Enterprise operations, Utility Fund, Solid Waste, are intended to be self-sufficient.
7. Administrative Cost Reimbursement. Enterprise fund budgets shall include a reimbursement to the General Fund to pay a proportionate share of administrative costs. Documentation to support the transfer shall be presented to City Council during the budget process.
8. Charges to Other Funds by Internal Service Funds. Charges by internal service funds to user divisions and funds shall be documented as part of the budget process.
9. Appropriations Lapse. Pursuant with Section 11.06 of the Charter, annual appropriations lapse at year end. Items purchased through the formal purchase order system (i.e., the encumbered portions), and not received by fiscal year end, are presented to City Council for re-appropriation in the subsequent fiscal year. To be eligible for automatic re-appropriation in a subsequent year, the goods or services must have been ordered in good faith and appropriated in the year encumbered.. The original budget is amended to include the re-appropriations. Capital projects budgets do not lapse at year-end. 10. Performance Indicators and Productivity Indicators. The annual budget, where possible, will utilize performance measures and productivity indicators. D. BALANCED BUDGET. The budget shall be balanced using a combination of current
Exhibit B FY 21-22
6
revenues and available funds. Current year operating expenses shall be funded with current year generated revenues. No budget shall be adopted unless the total of
estimated revenues, income, and funds available is equal to or in excess of such budget. E. REPORTING. Periodic financial reports shall be prepared to enable the Department Heads to manage their budgets and to enable monitoring and control of the budget. F. CONTROL. Operating Expenditure Control is addressed in Section V of these Policies. G. CONTINGENT APPROPRIATION. The General Fund, Water Fund, Wastewater Fund, Utility Fund and Solid Waste Fund may have an adequate contingent appropriation. This contingent appropriation, titled "Reserve for Future Allocation", shall be disbursed only by transfer to another departmental appropriation. Transfers from this item shall be controlled as outlined in Section VI, D of these policies. H. EMPLOYEE BENEFITS. The City budget process shall include a review of employee benefits. 1. Medical Insurance Fund - The Finance Committee shall review rates to be charged for employee and dependent coverage. 2. Retirement Plan - The City is a member of the Texas Municipal Retirement System (TMRS). Employees working at least 1,000 hours per year shall contribute 7% to the TMRS plan. The City’s match will be established according to TMRS rates for the benefit levels elected by the City. Any budgeted funds not spent can be deposited with TMRS to reduce the City’s unfunded liability with Council’s approval or will revert back to the unallocated monies in the appropriate fund. 3. Workers Compensation Insurance - The City shall participate in the Texas Municipal League (TML) Workers Compensation Risk Pool. Rates for required coverage will be established by the Pool, adjusted for experience on an annual basis. Refunds that may be granted through the pool will be prorated between the City funds. Unspent monies will revert back to the appropriate fund. 4. Social Security/Medicare - The City does not pay Social Security for employees. Medicare is paid for employees hired after March 31, 1986 or for those employees otherwise having access through the City. 5. Recommendations for adjustments to the pay and classification system will be made annually in order to maintain external parity and internal equity. Recommendations will be built into the proposed basic budget. IV. RESERVES/UNALLOCATED FUNDS A. OPERATING RESERVES/FUND BALANCES. The City shall maintain unallocated reserves in operating funds to pay expenditures caused by unforeseen emergencies or for shortfalls caused by revenue declines, and to eliminate any short-term borrowing for cash flow purposes. Generally, unallocated reserves for all operating funds excluding, Internal Service Funds, Capital Projects, and Special Revenue Funds shall be maintained at a minimum amount of 25% of the annual budget (less transfers to capital projects) for each fund unless specifically identified in this section. Unallocated reserves shall not be used to support on-going operating expenditures. This reserve is defined as unreserved
Exhibit B FY 21-22
7
current assets less inventory and on-going receivables (ex. utility billing, sales tax) minus current liabilities payable from these assets. B. FUND BALANCES USED FOR CAPITAL EXPENDITURES. Reserves shall be used for one time capital expenditures only if: 1. there are surplus balances remaining after all reserve and fund allocations are made; or 2. the City has made a rational analysis with justifying evidence that it has an adequate level of short and long-term resources. C. SPECIFIC APPROPRIATION BY CITY COUNCIL. If fund balances are used to support one time capital and onetime non-operating expenditures, the funds must be specifically appropriated by the City Council. D. CITY MANAGER’S AUTHORITY TO ASSIGN FUND BALANCE/UNALLOCATED RESERVES. At times, the City may be in various planning stages of projects. Each project will
undoubtedly have its own funding considerations and challenges. As a means of
planning for projects and ensuring (when necessary and appropriate) the availability of
Unallocated Reserves to pay for projects, the City Manager is hereby authorized to place
certain Unallocated Reserves in each of the City’s funds in “Assigned” status. The
definition of the term Assigned is as follows: Assigned Unallocated Reserves includes
amounts that are constrained by the City’s intent to be used for a specific purpose but
are neither restricted nor committed (as defined by GASB 54). When Unallocated
Reserves are placed in the “Assigned” status, they are to be noted and reduced as part
of the balance of Unallocated Reserves as calculated in the Fiscal and Budgetary
Policies , Section IV, A. The City Manager may assign Unallocated Reserves under the
following circumstances if the amount exceeds $50,000:
1. Matching funds for grants applied for with approval from the City Council.
2. When the City Manager is presented with documentation illustrating an adopted
Capital Improvement Project is expected to be in excess of budgeted funds.
3. When the City Manager has documented reason to believe that claims will
exceed budgeted revenues in the City’s Medical Insurance Fund.
4. When the City is engaged in litigation for which there is not expected to be third
party insurance coverage.
5. For Economic Development Incentive Agreements and/or Developers
Agreements approved by Council.
6. When the City Manager has documented reason to believe an amendment to the
budget will be necessary for which Unallocated Reserves will be the most likely
source of funds.
7. When the Council has approved a project and directed staff to proceed and the
next sequential step in the project (feasibility study, programming, rate study,
conceptual design, full design or construction) has not yet been identified for
funding.
Exhibit B FY 21-22
8
The City Manager and/or his designee shall update the Assigned Unallocated Reserve
three times annually as follows:
1. As soon as practical after the Council has adopted the Budget.
2. As soon as practical after the Comprehensive Annual Financial Report is
complete.
3. In conjunction with the annual budget adoption.
The updates described above will be reviewed, discussed and adopted by the Council
Finance Committee.
E. SPECIAL REVENUE FUNDS. Monies in the Special Revenue Funds shall be expended for their intended purposes, in accordance with an approved budget. There is no reserve requirement. F. CAPITAL PROJECT FUNDS. Monies in the Capital Projects Funds shall be expended in accordance with an approved budget. There is no reserve requirement. G. INTERNAL SERVICE FUNDS. Working capital in equipment replacement funds will vary to meet annual fluctuations in expenditures. Monies in the Internal Service Funds shall be expended for their intended purpose in conformance with the approved budget and approved replacement schedules. Additions to the Fleet or additional computer equipment will not be funded from replacement funds without council approval.
H. GENERAL OBLIGATION DEBT SERVICE FUND AND INTEREST ACCOUNTS. Reserves in the General Obligation Debt Service Fund and Water and Wastewater Funds Utility Fund’s Interest and Sinking accounts shall be maintained as required by
outstanding bond indentures. Reduction of reserves for debt shall be done only with City Council approval after Council has conferred with the City's financial advisor to insure there is no violation of bond covenants.
I. DEBT COVERAGE RATIOS. Debt Coverage Ratios shall be maintained as specified by the bond covenants.
J. MEDICAL INSURANCE FUND RESERVE. A reserve shall be established in the City's Health Insurance Fund to avoid potential shortages. The reserve amount shall be 6 months of budgeted claims for Medical and Dental claims. Such reserve shall be used for no purpose other than for financing losses under the insurance program. K. The City shall contract for an actuarial review once every two years related to its OPEB liability for retiree medical insurance benefit, in accordance with Government Accounting Standard Board pronouncements. V. REVENUE MANAGEMENT A. CHARACTERISTICS OF THE REVENUE SYSTEM. The City strives for the following optimum characteristics in its revenue system: 1. Simplicity and Certainty. The City shall strive to keep the revenue classification system simple to promote understanding of the revenue sources. The City shall describe its revenue sources and enact consistent collection policies to provide assurances that the revenues are collected according to budgets and plans.
Exhibit B FY 21-22
9
2. Equity. The City shall make every effort to maintain equity in its revenue system structure. The City shall minimize all forms of subsidization between entities, funds, services, utilities, and customers. 3. Realistic and Conservative Estimates. Revenues are to be estimated realistically. Revenues of volatile nature shall be budgeted conservatively. 4. Centralized Reporting. Receipts will be submitted daily to the Finance Department for deposit and investment. Daily transaction reports and supporting documentation will be prepared. 5. Review of Fees and Charges. The City shall review all fees and charges annually in order to match fees and charges with the cost of providing that service. 6. Aggressive Collection Policy. The City shall follow an aggressive policy of collecting revenues. Utility services will be discontinued (i.e. turned off) for non-payment in accordance with established policies and ordinances. The attorney responsible for delinquent tax collection, through the central collection agency, shall be encouraged to collect delinquent property taxes using an established tax suit policy and sale of real and personal property to satisfy non-payment of property taxes. A warrant officer will aggressively pursue outstanding warrants, and the Court will use a collection agency to pursue delinquent fines. B. NON-RECURRING REVENUES. One-time or non-recurring revenues will not be used to finance current ongoing operations. Non-recurring revenues will be used only for one-time expenditures such as capital needs. C. PROPERTY TAX REVENUES. All real and business personal property located within the City shall be valued at 100% of the fair market value based on the appraisal supplied by the Walker County Appraisal District. Reappraisal and reassessment is as provided by the Appraisal District. Property tax rates shall be maintained at a rate adequate to fund an acceptable service level. Based upon taxable values, rates may be adjusted to fund this service level. Collection services shall be contracted out with a central collection agency, currently the Walker County Appraisal District.
D. INTEREST INCOME. Interest earned from investment of available monies, whether pooled or not, shall be distributed to the funds in accordance with the equity balance of the fund from which monies were invested.
E. USER-BASED FEES AND SERVICE CHARGES. For services associated with a user fee or charge, the direct and indirect costs of that service shall be offset wholly or partially by
a fee where possible. There shall be an annual review of fees and charges to ensure that the fees provide adequate coverage of costs of services. Full fee support for operations and debt service costs shall be required in the Proprietary Funds. Partial fee support shall be generated by charges for miscellaneous licenses and fines, sports programs, and from other parks, recreational, cultural activities, and youth programs. F. UTILITY RATES. The City shall review and adopt utility rates annually that generate revenues required to cover operating expenditures, meet the legal requirements of
applicable bond covenants, and provide for an adequate level of working capital.
Exhibit B FY 21-22
10
G. COST REIMBURSEMENTS TO THE GENERAL FUND. The General Fund shall be reimbursed by other funds for a proportionate share of administrative costs.
Documentation to support the transfer shall be presented to City Council as part of the budget process.
H. INTERGOVERNMENTAL REVENUES/GRANTS/SPECIAL REVENUES. Grant revenues and other special revenues shall be spent for the purpose(s) intended. The City shall review grant match requirements and include in the budget all grant revenues and expenditures. I. REVENUE MONITORING. Revenues actually received are to be regularly compared to budgeted revenues. J. REVENUE PROJECTIONS. Each existing and potential revenue source shall be re-examined annually.
VI. EXPENDITURE CONTROL A. APPROPRIATIONS. The responsibility for budgetary control lies with the Department
Head. Department Heads may not approve expenditures that exceed monies available at the object code level. Capital expenditures are approved by the City Council on a per project basis.
B. AMENDMENTS TO THE BUDGET. In accordance with the City Charter, the City Council may transfer any unencumbered appropriated balance or portion thereof from any office, department, or agency to another at any time. C. CITY MANAGER'S AUTHORITY TO AMEND BUDGET. 1. Reserve for Future Allocation. The City Manager may authorize transfers of $50,000 or less from the budgeted Reserve for Future Allocation. For authorizations of $25,000 or less, the City Manager will report the use of Reserve for Future Allocation as an informational item. For authorizations between $25,001 and $50,000, the City
Manager shall provide written notice to the Council of his/her intent to authorize a transfer of Reserve for Future Allocation in excess of $25,000 (but not more than $50,000), and allow seven (7) business days to pass without a request by a
Councilmember to place the proposed expenditure on a City Council meeting agenda for full City Council consideration.
2. Transfer Between Line Items. The City Manager may, without prior City Council approval, authorize transfers between budget line items within a Fund with the exception that: a) Transfers from Salary and Benefit accounts shall stay within the Salary and Benefits account classification/object code. b) Savings from City Council approved capital purchases may not be spent for other than their intended purpose; c) Additions to the Fleet and additional computer equipment may not be purchased
from equipment replacement funds
Exhibit B FY 21-22
11
3. Capital Project Budgets. The City Manager shall have the authority to transfer amounts between line items of a capital project budget and to transfer monies from a
project’s Contingency Reserve to fund change orders on the project. The City Manager, without prior Council approval, may approve a change order to a construction or engineering contract in an amount not to exceed $50,000, as long as
the cumulative total of all change orders to the project do not exceed the State allowed maximum of 25% of the original contract price. D. PURCHASING. All purchases shall be made in accordance with the Purchasing Procurement and Disposition Policies approved by the Finance Committee. Purchasing will review all bids before posting. The sealed bid requirement is $50,000 if the anticipated bid is $50,000 or greater. Purchases of $50,000 and more in any one fiscal year from any one vendor whether a single purchase or separate or sequential purchases require city council approval. Purchases of less than $50,000 from a single vendor added to purchases of less than $50,000 from another vendor creating an asset of $50,000 or more do not require Council approval. The following shows a summary of approval
requirements for purchases.
APPROVAL REQUIREMENTS FOR PURCHASES
Denotes signature approval
E. CONTRACTS. The City Manager, or Mayor as authorized by Council, shall be the signature authority on contracts above $8,000 pursuant to the approval requirement for purchases as outlines after review by the City Attorney and Finance Director.
F. PROMPT PAYMENT. All invoices approved for payment by the proper City authorities shall be paid by the Finance Department within thirty (30) calendar days of receipt, in
accordance with the provisions of state law. Proper procedures shall be established that enables the City to take advantage of all purchase discounts, except in the instance where payments can be reasonably and legally delayed in order to maximize the City's investable
cash.
Dollar Figure
Supervisor Or Director Designee
Department Director
Purchasing Agent
City Manager
City Council
Less than $1,000
$1,000 to less than $8,000 (Quotation Form and Purchase Order)
$8,000 to less than $50,000 (Purchase Order)
$50,000 or more
Exhibit B FY 21-22
12
VII. CAPITAL IMPROVEMENTS PROGRAM AND THE CAPITAL BUDGET. A. PROGRAM PLANNING. The City shall develop and maintain a multi-year plan for capital
improvements and make capital improvements in accordance with the approved plan. The Capital Improvements Program will be updated annually. The Capital Improvements Program (CIP) is a planning document and does not authorize or fund projects. The planning time frame for the capital improvements program will normally be five to ten years. B. BUDGET PREPARATION. The capital budget shall evolve from the Capital Improvements Program. Capital project expenditures must be appropriated in the capital budget. A funding source and resource availability shall be presented to the City Council at the time a project is presented for funding. The City's Capital Budget is to be prepared annually in conjunction with the operating budget on a fiscal year basis to ensure that capital and operating needs are balanced against each other. Projects approved for funding from the Capital Improvements Program will be included in the Capital Budget. C. PROJECT LENGTH BUDGET. A budget for a capital project shall be a project length budget. At the end of the fiscal year, the unspent budget of an approved capital project shall automatically carry forward to the subsequent fiscal year until the project is completed. At project end, funds shall be available for project reallocation or returned to the originating fund. D. BUDGET AMENDMENT. All budget amendments shall be in accordance with State law. City Manager authority to amend the budget is identified in Section VI - D. E. FINANCING PROGRAMS. Alternative financing sources will be explored. The term of the debt issue may not exceed the expected useful life of the asset. F. REPORTING. Periodic financial reports shall be prepared to enable the Department Heads to manage their capital budgets and to enable the Finance Department to monitor, report, and provide information about the capital budget.
G. EVALUATION CRITERIA. Capital investments shall foster goals of economic vitality, neighborhood vitality, infrastructure preservation, provide service to areas lacking service and improve services in areas with deficient services. Evaluation criteria for selecting which capital assets and projects to include for funding shall include the following:
● mandatory projects ● maintenance projects ● efficiency improvement ● project provides a new service ● policy area projects ● extent of usage ● project's expected useful life ● effect of project on operation and ● availability of state/federal maintenance costs grants ● elimination of hazards ● prior commitments VIII. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING A. ACCOUNTING. The Finance Director is responsible for establishing the Chart of Accounts and for recording financial transactions.
Exhibit B FY 21-22
13
B. AUDITING.
1. Qualifications of the Auditor. Section 11.16 of the City's Charter requires the City to be audited annually by independent accountants ("auditor"). The CPA firm must demonstrate that it has staff to conduct the City's audit in accordance with
generally accepted auditing standards and contractual requirements. The auditor must be licensed by the State of Texas. 2. Responsibility of Auditor to City Council and Finance Committee. The auditor is retained by and is accountable to the City Council. The auditor shall communicate directly with the Finance Committee as necessary to fulfill its legal and professional responsibilities. The auditor's report on the City's financial statements shall be completed within 120 days of the City's fiscal year end. 3. Selection of Auditor. The City shall request proposals for audit services at least once every three years. The City shall select the auditor by May 31, of each year.
As required in Section 11.16 of the City Charter, the Auditor is appointed by the Mayor, with approval of the Council. The Certified Public Accountant shall have no personal interest, directly or indirectly, in the financial affairs of the City or any
of its officers. 4. Contract with Auditor. The agreement between the independent auditor and the City shall be in form of a written contract. A time schedule for completion of the
audit shall be included. 5. Scope of Audit. All general purpose statements, combining statements and individual fund and account group statements and schedules shall be subject to a full scope audit. 6. Publication of Results of Audit. As required by Section 11.16 of the City Charter, notice of the completion of the audit shall be published in a newspaper and copies placed in the office of the Director of Finance and the Huntsville Public Library. A copy will also be available in the office of the City Secretary.
C. FINANCIAL REPORTING. 1. External Reporting. As a part of the audit, the auditor shall assist with preparation
of a written Comprehensive Annual Financial Report (CAFR) to be presented to the City Council. The CAFR shall be prepared in accordance with generally accepted accounting principles (GAAP) and shall be presented annually to the
Government Finance Officers Association (GFOA) for evaluation and consideration for the Certificate of Achievement for Excellence in Financial Reporting. 2. Availability of Reports. The comprehensive annual financial report shall be made available to the elected officials, bond rating agencies, creditors and citizens. 3. Internal Reporting. The Finance Department shall prepare internal financial reports, sufficient to plan, monitor, and control the City's financial affairs.
Exhibit B FY 21-22
14
IX. INVESTMENTS AND CASH MANAGEMENT
A. DEPOSITORY BANK. A Depository Bank shall be selected by the City Council for a two-year period, and may be renewed in accordance with the Public Funds Investment Act. A request for proposal shall be used as the means of selecting a Depository Bank. The
Depository Bank shall specifically outline safekeeping requirements. B. DEPOSITING OF FUNDS. The Finance Director shall promptly deposit all City funds with the Depository Bank in accordance with the provisions of the current Bank Depository Agreement and the City Council approved Investment Policies. Investments and reporting shall strictly adhere to the City Council approved Investment Policies. C. INVESTMENT POLICY. All funds shall be invested in accordance with the approved investment policy. Investment of City funds emphasizes preservation of principal. Objectives are, in order, safety, liquidity and yield. A procedures manual shall be approved by the Finance Committee.
D. MONTHLY REPORT. A monthly cash and investment report shall be prepared.
X. ASSET MANAGEMENT A. FIXED ASSETS AND INVENTORY. A fixed asset of the City is defined as a purchased
or otherwise acquired piece of equipment, vehicle, furniture, fixture, capital improvement, infrastructure addition, or addition to existing land, buildings, etc. A fixed asset’s cost or value is $5,000 or more, with an expected useful life greater than one year. Improvements and infrastructure values are $25,000 or more in cost with a useful life or extension of five years. B. MAINTENANCE OF PHYSICAL ASSETS. The City will maintain its physical assets at a level adequate to protect the City’s capital investment and minimize future maintenance and replacement costs. The budget will provide for the adequate maintenance and the orderly replacement of fixed assets.
C. OPERATIONAL PROCEDURES MANUAL. Records shall be purged that do not meet the capitalization criteria and operational procedures shall be in accordance with a fixed asset records procedure manual.
D. SAFEGUARDING OF ASSETS. The City's fixed assets will be reasonably safeguarded and properly accounted for. Responsibility for the safeguarding of the City's fixed assets
lies with the Department Head in whose department the fixed asset is assigned. E. MAINTENANCE OF RECORDS. The Finance Department shall maintain the records of the City's fixed assets including description, cost, department of responsibility, date of acquisition and depreciation where applicable. Records of land and rights-of-way shall be maintained in the Planning & Development Department. F. ANNUAL INVENTORY. An annual inventory of assets shall be performed and accounted for by each department using guidelines established by the Finance Department. Such inventory shall be performed by the Department Head or the designated agent. The Department Head shall use a detailed listing and shall be responsible for a complete
review of assigned fixed assets. A signed inventory list shall be returned to the Finance
Exhibit B FY 21-22
15
Department.
G. INFRASTRUCTURE MAINTENANCE. The City recognizes that deferred maintenance increases future capital costs. Funds shall be included in the budget each year to maintain the quality of the City’s infrastructure. Replacement schedules should be developed in
order to anticipate this inevitable ongoing and obsolescence of infrastructure. H. SCHEDULED REPLACEMENT OF ASSETS. As part of the ongoing replacement of assets, the City has established Equipment Replacement Funds. These funds charge the user funds, based on the estimated replacement cost and estimated life of the equipment. The City maintains fleet and computer replacement funds. XI. DEBT MANAGEMENT A. DEBT ISSUANCE. The City shall issue debt when the use of debt is appropriate and specifically approved by the City Council and expenditure of such monies shall be in strict
accordance with the designated purpose.
B. ISSUANCE OF LONG-TERM DEBT. The issuance of long-term debt is limited to use for capital improvements or projects that cannot be financed from current revenues or resources and future citizens will receive a benefit from the improvement. Debt may be issued for the purposes of purchasing land or rights-of-way and/or improvements to land, street improvements, or construction projects to provide for the general good. For purposes of this policy, current resources are defined as that portion of fund balance in excess of the required reserves. The payback period of the debt will be limited to the
estimated useful life of the capital projects or improvements. C. The City shall strive to schedule debt issues to take advantage of the small issuer status
designation in regard to Federal Arbitrage laws. D. PAYMENT OF DEBT. When the City utilizes long-term debt financing it will ensure that
the debt is financed soundly by realistically projecting the revenue sources that will be used to pay the debt; and financing the improvement over a period not greater than the useful life of the improvement. E. TYPES OF DEBT. 1. General Obligation Bonds (G.O.'s). General obligation bonds shall be used only to fund capital assets of the general government, and not used to fund operating needs of the City. General obligation bonds are backed by the full faith and credit of the City as well as the ad valorem tax authority of the City. The term of a bond issue shall not exceed the useful life of the asset(s) funded by the bond issue. General obligation bonds must be authorized by a vote of the citizens of the City of Huntsville. 2. Revenue Bonds (R.B.'s). Revenue bonds shall be issued as determined by City Council to provide for the capital needs of any activities where the capital requirements are necessary for continuation or expansion of a service which produces revenue and for which the asset may reasonably be expected to provide for a revenue stream to
fund the debt service requirements. The term of the obligation may not exceed the useful life of the asset(s) to be funded by the bond issue. 3. Certificates of Obligation (C.O.'s). Certificates of obligation may be used in order to
Exhibit B FY 21-22
16
fund capital assets. Debt service for C.O.'s may be either from general revenues or backed by a specific revenue stream or streams or by a combination of both. C.O.'s may be used to fund capital assets where full bond issues are not warranted as a result of the cost of the asset(s) to be funded through the instrument. Infrastructure and building needs may also be financed with Certificates of Obligation, after evaluation of financing alternatives by the City’s Financial Advisor. The term of the obligation may not exceed the useful life of the asset(s) to be funded by the proceeds of the debt issue. 4. Tax Anticipation Notes. Tax Anticipation Notes may be used to fund capital assets of the general government or to fund operating needs of the City. Tax Anticipation Notes are backed by the full faith and credit of the City as well as the ad valorem tax authority of the City. The term of a note issue shall not exceed the useful life of the asset(s) funded by the debt issued or seven years whichever is less. 5. Capital Lease. Capital leases may be used to fund capital assets with shorter lives (generally less than 10 years) for vehicles, equipment and software. The term shall not exceed the useful life of the assets. F. METHOD OF SALE. The City shall use a competitive bidding process in the sale of bonds and certificates of obligation unless some other method is specifically agreed to by City Council. G. FINANCIAL ADVISOR. The Finance Committee will recommend to the City Council a financial advisor to oversee all aspects of any bond issue. H. ANALYSIS OF FINANCING ALTERNATIVES. Staff will explore alternatives to the issuance of debt for capital acquisitions and construction projects. These alternatives will include, but not be limited to, 1) grants in aid, 2) use of reserves, 3) use of current revenues, 4) contributions from developers and others, 5) leases, and 6) impact fees. I. DISCLOSURE. Full disclosure of operations shall be made to the bond rating agencies and other users of financial information. The City staff, with the assistance of financial advisors and bond counsel, shall prepare the necessary materials for presentation to the rating agencies, and shall aid in the production of Offering Statements. J. DEBT STRUCTURING. The City will generally issue debt for a term not to exceed 20 years. The City will exceed a 20-year term only upon recommendation of the City’s Financial Advisor and in no case shall the term of the debt issue exceed the life of the asset acquired. The repayment schedule shall approximate level debt service unless operational matters dictate otherwise or if market conditions indicate a potential savings could result from modifying the level payment stream. Consideration of market factors, including tax-exempt qualification, and minimum tax alternatives will be given during the structuring of long-term debt instruments. K. FEDERAL REQUIREMENTS. The City will maintain procedures to comply with arbitrage rebate and other Federal requirements.
L. BIDDING PARAMETERS. The notice of the sale of bonds will be carefully constructed so as to ensure the best possible bid for the City, in light of the existing market conditions and other prevailing factors. Parameters to be examined include:
• Limits between lowest and highest coupons
• Coupon requirements relative to the yield curve
Exhibit B FY 21-22
17
• Method of underwriter compensation, discount or premium coupons
• Use of bond insurance • Call provisions
XII. INTERNAL CONTROLS A. WRITTEN PROCEDURES. Wherever possible, written procedures shall be established and maintained by the Finance Department for all functions involving cash handling and/or accounting throughout the City. These procedures shall embrace the general concepts of fiscal responsibility set forth in this policy statement.
B. DEPARTMENT HEAD RESPONSIBILITIES. Each Department Head is responsible to ensure that good internal controls are followed throughout the Department, that all Finance Department directives or internal controls are implemented, and that all independent
auditor internal control recommendations are addressed.
C. COMPUTER SYSTEM/DATA SECURITY. The City shall provide security of its computer system and data files through physical security and appropriate backup procedures. A
disaster recovery plan shall be developed by the Information Services Department. Computer systems shall be accessible only to authorized personnel. XIII. RISK MANAGEMENT A. RESPONSIBILITY. A risk manager is responsible for the general risk liability insurance
risk management function of the City. Recommendations for deductibles, limits of coverage, etc. shall be presented to the Finance Committee for review. B. EMPLOYEE SAFETY. The City will aggressively pursue opportunities to provide for employee safety. The goal will be to minimize the risk of loss, with an emphasis on regularly scheduled safety programs. C. SELF INSURED HEALTH INSURANCE. A detailed annual report shall be given to the Finance Committee that includes available funds, expected payouts in the plan, reinsurance costs and a rate recommendation. The presentation shall include a proposed budget for a period coinciding with the City's fiscal year. XIV. ROLE OF THE FINANCE COMMITTEE OF CITY COUNCIL The finance committee appointed by City Council upon recommendation of the Mayor
shall have responsibilities including: A. Monitoring and recommending changes to the Investment Policy; B. Managing the audit; C. Review of liability insurance coverage’s. D. Oversight of budget and finances
Exhibit C FY 201-212 CITY OF HUNTSVILLE, TEXAS
INVESTMENT & BANKING POLICIES
10/1/201710/1/2021
(Exhibit C) (FY 21024-135 -6212)
TABLE OF CONTENTS PART I - INVESTMENT POLICY I. Purpose of Policy ............................................. 1 II. Scope of Policy ............................................... 1 III. Designation of Investment Officers ............................ 1 IV. Investment Training ........................................... 2 V. Ethics and Conflict of Interest ............................... 2 VI. Objectives .................................................... 2 VII. Market Yield (Benchmark)/Market Price of Investments .......... 3 VIII. Investment Strategies ......................................... 3 IX. Prudence/Standard of Care ..................................... 4 X. Diversification ............................................... 4 XI. Maximum Maturities ............................................ 4 XII. Purchase Procedures ........................................... 4 XIII. Collateralization ............................................. 5 XIV. Safekeeping and Custody ....................................... 5 XV. Internal Control/Compliance Audit ............................. 6 XVI. Authorized Financial Dealers and Institutions ................. 6 XVII. Authorized Investments ............................. ...... 6 XVIII.Investment Pools .............................................. 9 XIX. Reporting .................................................... 10 XX. Policy Adoption .............................................. 11 PART II - BANKING SERVICES POLICY I. Establishment of Banking Depository .......................... 11 II. Collateralization Requirements/Safekeeping and Custody ....... 12 PART III - INVESTMENT POLICY - POST EMPLOYMENT BENEFIT PLAN (aka PEB Trust) I. Introduction .............................................. 15 II. Purpose ................................................... 16 III. Investment Objectives ...................................... 17 IV. Investment Guideline for Asset Management .................. 18 V. Performance Evaluation............ ......................... 21 VI. Investment Manager Selection ............................... 23 VII. Definitions ................................................ 24 Attachment A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 List of Authorized Broker/Dealers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Appendix I - State Law List of Authorized Investments
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Exhibit C FY 201-212
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CITY OF HUNTSVILLE INVESTMENT AND BANKING POLICIES PART I - INVESTMENT POLICY I. PURPOSE OF POLICY The Public Funds Investment Act (PFIA), Chapter 2256, Texas Government Code prescribes that each city is to adopt rules governing its investment practices and to define the authority of the Investment Officer. This policy is adopted by the City Council to direct and limit the financial affairs of the City of Huntsville. It is the policy of the City of Huntsville to invest public funds in a manner which will provide the maximum security of principal invested at a reasonable market rate of return, with consideration of the City’s risk constraints and cash flow needs. Receipt of a market rate of return will be secondary to the requirements for safety and liquidity. Thethe City to will be in compliancecomply with all state and local statutes, including the Texas Public Funds Investment Act. II. SCOPE OF POLICY This policy applies to all funds or financial resources available for investment by the City accounted for in the City of Huntsville, Texas Comprehensive Annual Financial Report and include the General Fund, General Obligation Debt Service Fund, Special Revenue Funds, Enterprise Funds, Permanent Funds, Internal Service Funds, the City’s self-funded Health Insurance Fund, and will include any new fund created by the City Council unless specifically exempted by City Council. All monies may be pooled into one investment account, except for those monies accounted for in accounts as deemed necessary, or as stipulated by applicable laws, bond covenants or contracts. These policies do not, however, govern funds that are managed under separate investment programs such as retirement funds, pension funds, deferred compensation funds and certain private donations, that are maintained as required by federal and state law, other local policies, or donor stipulations. III. DESIGNATION OF INVESTMENT OFFICERS The authority to manage the City of Huntsville investment program is derived from State Statute, the City Charter, and these investment policies. Management responsibility for the investment program is hereby delegated to the City Manager and Finance Director, designated as Investment Officers for the City of Huntsville, who shall establish written procedures for the operation of the investment program consistent with this investment policy and shall be responsible for the operation of the investment program consistent with this investment policy. The Director of Finance, under general supervision of the City Manager, shall direct the cash management program of the City. (See City Charter Art. XI). The City Manager and/or Director of Finance may deposit, withdraw, invest, transfer, and manage City funds. The Investment Officers shall report to the Finance Committee of City Council. The Finance Committee, appointed by the Mayor, shall be responsible for monitoring, reviewing and making recommendations regarding the City’s investment program to the City Council. The Director of Finance may authorize persons to engage in investment transactions and approve wire transfers used in the process of investing.
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(Exhibit C) (FY 21024-135 -6212)
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IV. INVESTMENT TRAINING Not less than once in a two-year period that begins on the City’s first day of the fiscal year the Finance Director shall receive not less than 10 hours of instruction relating to investment responsibilities. The Finance Director and City Manager shall attend investment training on an annual basis that includes education in investment controls, security risks, strategy risks, market risks, diversification of investment portfolio and general compliance with state law. Not less than once in a two-year period, the investment officers shall receive not less than 10 hours of instruction relating to investment responsibilities.Training must be received from an independent source, approved by the entity’s governing body or investment committee, and taken within twelve months after taking office or assuming duties. V. ETHICS AND CONFLICT OF INTEREST Officers and employees involved in the investment function shall refrain from personal business activity that could conflict with proper execution of the investment program, or that could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the Finance Committee of the City Council any material financial interest in financial institutions that conduct business with the City, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City of Huntsville, particularly with regard to the time of purchases and sales. Investment officers shall comply with Texas Government Code section 2256.005(I) relating to personal business relationships with a business organization offering to engage in an investment transaction with the City of Huntsville. VI. OBJECTIVES The objectives of the City's investment policies are, in order of priority: preservation and safety of principal, liquidity and yield/return on investments. The policy must be written, address investment diversification and the quality and capability of investment management. The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow needs. A. Preservation and safety of principal shall be the foremost objective of the City's investment program. Preservation and safety of principal shall be obtained through protection of principal and safekeeping. 1. The City shall control risk of loss due to the failure of a security issuer or guarantor. Such risk shall be controlled by investing in the safest types of securities, by qualifying the financial institution with whom the City will transact, and by portfolio diversification. 2. The City shall also control risks of loss by requiring collateral for depository bank funds to be held by a financial institution separate from the depository bank. B. Liquidity shall be achieved by matching investment maturities with forecasted cash flow requirements and by investing in securities with active secondary markets. A security may be liquidated to meet unanticipated cash requirements, to redeploy cash into other investments expected to outperform current holdings, or to otherwise adjust the City's portfolio.
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Commented [RK1]: I will delete the highlighted section and replace with text in blue.
(Exhibit C) (FY 21024-135 -6212)
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C. Yield/Return on Investments. The City of Huntsville investment portfolio is designed with the objective of attaining a rate of return throughout budgetary and economic cycles commensurate with the City of Huntsville investment risk constraints and the cash flow characteristics of the portfolio. Investments, other than the overnight cash concentration account, shall be made in permitted obligations at yields equal to or greater than the bond equivalent yield on United States Treasury obligations of comparable maturity. VII. MARKET YIELD (BENCHMARK) The market yield benchmark shall be a yield equal to the bond equivalent yield on United States Treasury obligations of comparable maturity. If selling a security prior to a fixed date maturity at a gain or loss, the investment officers shall notify the Finance Committee of City Council at its next meeting. The City shall monitor the market price of investments as of the end of each month through reports provided by brokers and/or the use of a purchased service or available software. VIII. INVESTMENT STRATEGIES The City of Huntsville shall generally invest funds with the intent to hold to maturity. Investment selection shall be based on legality, appropriateness, liquidity, and risk/return considerations. Monies designed for immediate expenditure should be passively invested to allow for liquidity to pay upcoming disbursements, (payroll, debt service payments, payables, etc.), and allow for structuring the investment portfolio on a “laddered” basis. The City of Huntsville maintains portfolios that utilize four specific investment strategies designed to address the unique characteristics of the fund groups represented in the portfolios: A. Operating Funds have as their primary objective the assurance that anticipated cash flows are matched with adequate investment liquidity. The secondary objective is to create a portfolio structure that will experience minimal volatility during economic cycles. The weighted average days to maturity of these funds shall be less than 365 days and shall be calculated using the stated final maturity date for each security. B. Debt Service Funds shall have as the primary objective the assurance of investment liquidity adequate to cover the debt service obligations on the required payment date. Securities purchased shall not have a stated final maturity date that exceeds the debt service payment date. C. Debt Service Reserve Funds shall have as the primary objective the ability to generate a dependable revenue stream to the appropriate debt service fund from securities with a low degree of volatility. In addition to the bond ordinance specific to an individual bond issue, which sets out investment parameters, securities shall have a maturity of less than five years. Investments shall be limited to obligations of the United States or its agencies and instrumentalities or in approved investment pools. D. Special Projects or Special Purpose Fund portfolios will have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. These portfolios should include at least 10% in highly liquid securities to allow for flexibility and unanticipated project outlays. The stated final maturity dates of securities held should not exceed the estimated project completion date. A singular repurchase agreement may be utilized if disbursements are allowed in the amount necessary to satisfy any expenditure request. This investment structure is commonly referred to as a flexible repurchase agreement.
(Exhibit C) (FY 21024-135 -6212)
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IX. PRUDENCE/STANDARD OF CARE Investments shall be made with the judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person’s own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. In determining whether the City’s investment officers have exercised prudence with respect to an investment decision, the determination shall be made taking into consideration, the investment of all funds, or funds under the City’s control, over which they have responsibility rather than a consideration as to the prudence of a single investment, and whether the investment decision is consistent with this investment policy. X. DIVERSIFICATION The City of Huntsville will diversify its investments by security type and institution. With the exception of U.S. Treasury securities and authorized pools, no more than 50% of the total investment portfolio will be invested in a single security type or with a single financial institution. Diversification will also include terms of maturity as well as instrument type and issue. Investments shall not exceed more than 20% of the capitalization of the financial institution other than the main depository. Bond proceeds may be invested in a single security or investment which exceeds the City=’’s diversification limits if the Investment Officers, with concurrence of the Finance Committee, determine that such an investment is necessary to comply with Federal arbitrage restriction or to facilitate arbitrage record keeping and calculation. XI. MAXIMUM MATURITIES In order to stabilize yield for budgeting purposes, the City shall maintain a portion of its investments in obligations with maturities greater than one year. No investment shall be made with a maturity greater than five years without express authority of the Finance Committee of the City Council. In determining the amount of investment longer than one year, cash flow and unallocated reserve funds will be evaluated. The maximum dollar-weighted average maturity allowed based on the stated maturity date for the portfolio shall not exceed 2 years. XII. PURCHASE PROCEDURES The City may, without further bidding, utilize any program established through the Texas Inter- local Cooperation Act that invests in funds authorized by the Public Funds Investment Act; or purchase certificates of deposit or other approved securities through its primary depository bank. When possible, other investments should be made after 3 competitive bids are solicited (excluding transactions with money market mutual funds, local government investment pools and when issued securities, which are deemed to be made at prevailing market rates.). Competitive bids may be solicited orally, in writing, electronically, or in any combination of these methods. An offer worksheet shall be kept for each bid transaction showing the name of dealer/bank contacted, amount of principal to be invested, yield quoted, type of investment, fund designation, maturity date, issue date, length of time invested, and cusip number. Purchase of a security shall not be made at a price that exceeds the existing market value of the security. The delivery shall be made under normal and recognized practices in the securities and banking industries, including the book entry procedure of the Federal Reserve Bank. The deposit shall be held in the name of the City of Huntsville and shall be evidenced by a trust receipt of the bank with which the securities are deposited.
(Exhibit C) (FY 21024-135 -6212)
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XIII. COLLATERALIZATION The Public Funds Collateral Act requires the City to have complete collateralization of all investments and deposits at the depository banking institution. It will be required for all uninsured collected balances, plus accrued interest, if any,on two types of investments: certificates of deposit in excess of FDIC coverage. To anticipate market changes and provide a level of security for all funds, the collateralization level will be at least 102% of the market value of principal and accrued interest. The City chooses to limit collateral to obligations of the United States or its agencies and instrumentalities, and direct obligations of the State of Texas or its agencies and instrumentalities. Collateral will always be held by an independent third party with whom the entity has a current custodial agreement. XIV. SAFEKEEPING AND CUSTODY All security transactions entered into by the City of Huntsville shall be conducted on a delivery vs. payment (DVP) basis, with the exception of investment pool funds and mutual funds, and delivered by either book entry or physical delivery. A Federal Reserve Member financial institution designated as the City’s safekeeping and custodian bank shall hold these securities in a third-party safekeeping account. The City may designate more than one custodian bank. . The City’s custodial or safekeeping institution cannot be a counterpart (broker or dealer) to the purchase or sale of these securities. The City shall execute a written Safekeeping Agreement with each bank prior to utilizing the custodian’s safekeeping services. The Safekeeping Agreement must provide that the safekeeping bank will immediately record the receipt of purchased or pledged securities on its books and promptly issue and deliver a signed safekeeping receipt showing the receipt and the identification of the security as well as the City’s interest. A) The Investment Officer or his designee shall maintain a list of designated custodian banks and a copy of the Safekeeping Agreement executed with each custodian bank. B) The Investment Officer must approve release of securities, in writing, prior to their removal from the custodian account. An electronic copy shall be sufficient if the custodian orally confirms receipt of the transmission and an exact copy of the document is retained at the City. C) All securities shall be confirmed in the name of the City of Huntsville and delivered to an approved custodial bank or carried at a Federal Reserve Bank in the name of the City of Huntsville. The custodian shall not otherwise deposit purchased or pledged securities. In addition, the custodian bank will furnish to the City a copy of the delivery advice received by the custodian bank from the Federal Reserve Bank. D) The correspondent or safekeeping bank shall issue a safekeeping receipt to the City evidencing securities are held in the City’s name. E) The original safekeeping receipt for each transaction shall be forwarded to the Investment Officer or his designee. F) At least quarterly, the Investment Officer or their designee, shall verify that all securities owned by the City or pledged to the City are held in safekeeping in the City’s custodial bank
(Exhibit C) (FY 21024-135 -6212)
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with proper documentation. At least annually, the City’s Investment Program, including the records of custodians and depositories, shall be subject to a compliance audit of management controls on investments and adherence to these investment policies reviewed by an independent Certified Public Accountant selected by the City Council. XV. INTERNAL CONTROL/COMPLIANCE AUDIT
A system of internal controls shall be established. As part of the Cityy=’s annual audit, an
independent auditor shall review internal controls, investment practices, investment performance, quarterly reports prepared by the investment officers and the result of the review shall be reported to the Finance Committee of the City Council. A compliance audit of management control on investments and adherence to investment policies is to be included. XVI. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The City Council shall approve at least three broker/dealers upon recommendation of the Finance Committee for use by the designated investment officers. The broker/dealers may include primary dealers and regional dealers that qualify under Securities and Exchange Commission Rule 15C3-1 (uniform net capital rule). The selection process shall include a proposal process with potential broker/dealers providing a completed broker/dealer questionnaire, certification of having read the City of Huntsville investment policy, proof of National Association of Security Dealers certification and proof of state registration. The selected broker/dealers must acknowledge in writing that the business organization has implemented reasonable procedures and control in an effort to preclude investment transactions conducted between the entity and the organization that are not authorized by the City=’s Investment Policy, except to the extent that this authorization is dependent on an
analysis of the makeup of the entity’s entire portfolio or requires an interpretation of subjective investment standards. An investment officer may not buy any securities from a firm that has not filed this instrument. An annual review of the financial condition and registrations of qualified bidders is to be conducted by the City Manager or Finance Director and a current audited financial statement is required to be on file for each broker/dealer that conducts transactions with the City. The Finance Committee shall review, revise and adopt a list of qualified brokers that are authorized to engage in investment transactions with the City. XVII. AUTHORIZED INVESTMENTS The City of Huntsville may invest only in the safest type of securities and in accordance with Texas state law (Appendix I). There are two general categories of authorized investments for the City of Huntsville: (1) investments which the designated investment officers may invest without prior approval from the Finance Committee; and, (2) investments that require prior Finance Committee approval. A. Authorized investments that do not require prior approval of Finance Committee: 1. Obligations of, or Guaranteed by, Governmental Entities: a. obligations of the United States or its agencies and instrumentalities; b. direct obligations of the State of Texas or its agencies and instrumentalities; c. other obligations, the principal and interest of which are unconditionally
Commented [SR2]: Need procedure documented – part of Rachel’s responsibilities quarterly – s/b on her calendar
Commented [RK3R2]: Would the Statement of Holdings report with a listing of securities and their current market values suffice? This is sent to us every month.
Commented [RK4R2]:
Commented [SR5]: Need to add “, in writing,” between these 2 words
Commented [SR6]: This part of this sentence does not seem to go with the previous part. What is “this authorization” referring to?
Commented [RK7R6]: I’ll show you the wording in PFIA’s section 2256.005 (k-1)
(Exhibit C) (FY 21024-135 -6212)
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guaranteed or insured by, or backed by the full faith and credit of, this state or the United States or their respective agencies and [its] instrumentalities; d. obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized investment rating firm not less than A or its equivalent. e. bonds issued, assumed, or guaranteed by the State of Israel; and f. interest-bearing banking deposits that are guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor. e. The following are not authorized investments under this section: a.1) obligations whose payment represents the coupon payments on the
outstanding principal balance of the underlying mortgage-backed security
security
ccollateral and pays no principal;
2b). obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest; c3). collateralized mortgage obligations that have a stated final maturity date greater than 10 years; and 4d). collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. 2. Certificates of Deposit: Certificates of deposit issued by state and national banks, or a savings bank or credit union domiciled in Texas that are: a. guaranteed or insured by the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund, or comparable insurance entities or their successors; or b. secured in any other manner and amount provided by law for deposits of the City. c. secured through an authorized broker in accordance with the Public Funds IInvestment Act (PFIA). B. Authorized investments requiring prior approval of the Finance Committee: 31. Banker’s Acceptances A bankers acceptance is an authorized investment if the bankers=’s acceptance:
(a) has a stated maturity of 270 days or fewer from the date of its issuance; (b) will be, in accordance with its terms, liquidated in full at maturity; (c) is eligible for collateral for borrowing from a Federal Reserve Bank; and (d) is accepted by a bank organized and existing under the laws of the United States or any state, if the short-term obligations of the bank, or of a bank holding company of which the bank is the largest subsidiary, are rated not less than A-1 or P-1 or an equivalent rating by at least one nationally recognized credit rating agency.
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(Exhibit C) (FY 21024-135 -6212)
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42. Commercial Paper Commercial paper is an authorized investment if the commercial paper has a stated maturity of 270 days or fewer from the date of its issuance and is rated not less than A-1 or P-1 or an equivalent rating by at least two nationally recognized credit rating agencies or one nationally recognized credit rating agency and is fully secured by an irrevocable letter of credit issued by a bank organized and existing under the laws of the United States or any state. . 53. Mutual Funds A. A no-load money market mutual fund is an authorized investment if: (1) the mutual fund is registered with and regulated by the Securities and Exchange Commission; (2) provides the investing entity with a prospectus and other information required by the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.) or the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et seq.); and 3) complies with federal Securities and Exchange Commission Rule 2a-7 (17 C.F.R. Section 270.2a-7), promulgated under the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et seq.) ( B. In addition to a no-load money market mutual fund permitted as an authorized investment in Subsection (a), a no-load mutual fund is an authorized investment under this subchapter if the mutual fund: 1) is registered with the Securities and Exchange Commission; 2) has an average weighted maturity of less than two years; and 3) either: (a) has a duration of one year or more and is invested exclusively in obligations approved by this subchapter; or (b) has a duration of less than one year and the investment portfolio is limited to investment grade securities, excluding asset-backed securities. C. The City is not authorized by this section to: 1) invest in the aggregate more than 80 percent of its monthly average fund balance, excluding bond proceeds and reserves and other funds held for debt service, in money market mutual funds described in Subsection (a) or mutual funds described in Subsection (b), either separately or collectively; 2) invest in the aggregate more than 15 percent of its monthly average fund balance, excluding bond proceeds and reserves and other funds held for debt service, in mutual funds described in Subsection (b); 3) invest any portion of bond proceeds, reserves and funds held for debt service, in mutual funds described in Subsection (b); or 4) invest its funds or funds under its control, including bond proceeds and reserves and other funds held for debt service, in any one mutual fund described in Subsection (a) or (b) in an amount that exceeds 10 percent of the total assets of the mutual fund. C. Effect of Loss of Required Rating An investment that requires a minimum rating under this subchapter does not qualify as an
(Exhibit C) (FY 21024-135 -6212)
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authorized investment during the period the investment does not have the minimum rating. The City shall take all prudent measures that are consistent with its investment policy to liquidate an investment that does not have the minimum rating. XVIII. INVESTMENT POOLS A. The City may invest in eligible investment pools as defined by the Public Funds Investment Act, which meet criteria outlined in chapter Texas Government Code section 2256.016 and section 2256.019. The Council shall authorize participation in the pool by resolution or ordinance. B. The City must receive from the pool an offering circular or other similar disclosure instrument that contains, at a minimum, the following information: 1. a description of eligible investment securities; 2. the maximum average dollar-weighted maturity allowed, based on the stated maturity date, of the pool; 3. the maximum stated maturity date any investment security within the portfolio has; 4. a written statement of investment policy and objectives; 5. the size of the pool; 6. the names of the members of the advisory board of the pool and the dates their terms expire; 7. the custodian bank that will safe keep the pool’s assets; a description of how the securities are safeguarded (including the settlement process) and how often the securities are priced; 8. whether the intent of the pool is to maintain a net asset value of one dollar and the risk of market price fluctuation; 9. whether the only source of payment is the assets of the pool at market value or whether there is a secondary source of payment, such as insurance or guarantees, and a description of the secondary source of payment; 10. the name and address of the independent auditor of the pool and how often the program is audited; 11. the requirements to be satisfied for an entity to deposit funds in and withdraw funds from the pool including how often and what size deposits and withdrawals are allowed, and any deadlines or other operating policies required for the entity to invest funds in and withdraw funds from the pool; and; 12. the performance history of the pool, including yield, average dollar-weighted maturities, and expense ratios; 13. a description of interest calculations and how it is distributed and how gains and losses are treated;
Commented [SR8]: Seems to contradict the previous “C.”
Commented [RK9R8]: I can remove this. This was in our current policy but I do not see this language in PFIA.
(Exhibit C) (FY 21024-135 -6212)
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14. a schedule for receiving statements and portfolio listings; 15. an explanation of whether reserves, retained earnings, etc. are utilized by the pool; 16. a fee schedule, including when and how it is assessed; 17. an explanation of whether the pool is eligible and/or will it accept bond proceeds. C. To maintain eligibility to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must furnish to the investment officer or other authorized representatives of the entity: 1. investment transaction confirmations; and 2. a monthly report that contains, at a minimum, the following information: a. the types and percentage breakdown of securities in which the pool is invested; b. the current dollar-weighted average maturity, based on the stated maturity date, of the pool; c. the current percentage of the pool=’s portfolio in investments that have stated maturities of more than one year; d. the book value versus the market value of the pool=’s portfolio, using amortized cost valuation; e. the size of the pool; f. the number of participants in the pool; g. the custodian bank that is safekeeping the assets of the pool; h. a listing of daily transaction activity of the entity participating in the pool; i. the yield and expense ratio of the pool; j. the portfolio managers of the pool; and k. any changes or addenda to the offering circular. D. The City by contract may delegate to an investment pool the authority to hold legal title as custodian of investments purchased with its local funds. E. “Yield” shall be calculated in accordance with regulations governing the registration of open-end management investment companies under the Investment Company Act of 1940, as promulgated from time to time by the Federal Securities and Exchange Commission. XIX. REPORTING Within 30 days of the end of each quarter the Finance Director shall prepare and submit to the City Council a written report of investment transactions for the preceding reporting period. The report must: 1) Describe in detail the investment position of the entity on the date of the report; 2) Be prepared and signed jointly by all investments officers of the entity; 3) Contain a summary statement of each pooled fund group that states the beginning and ending market values and fully accrued interest for the reporting period; 4) State the book and market values of each separately invested asset at the end of the reporting period by the type of asset and fund type invested;
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5) State the maturity date of each separately invested asset that has a maturity date; 6) State the account or fund or pooled group fund in the local government for which each individual investment was acquired; and 7) State the compliance of the investment portfolio of the local government as is relates to: a. The investment strategy expressed in the agency’s or local government’s investment policy; and b. Relevant provisions of PFIA Sec. 2256.023 8) If the City invests in investments other than money market mutual funds, investment pools or accounts offered by its depository bank in the form of certificates of deposit, the reports prepared by the Investment Officer shall be reviewed at least annually by an independent auditor, and the result of the review shall be reported to the governing body by that auditor; and; 9) Compare to the benchmark bond equivalent yield or United States Treasury obligation of comparable maturity. XX. POLICY ADOPTION The City of Huntsville investment policy shall be adopted by ordinance of the City Council. The policy shall be reviewed annually by the Finance Committee, and any modifications made thereto must be approved by the City Council. Annually, City Council shall adopt a resolution or include in the budget ordinance information stating that it has reviewed the investment policy and investment strategies. The resolution/ordinance shall record any changes made to the investment policy or investment strategies. PART II - BANKING SERVICES POLICY I. ESTABLISHMENT OF BANKING DEPOSITORY A. The City Council shall select a bank, credit union or savings association as its primary depository for normal banking transactions. In addition, the City may designate one or more other depositories for investment transactions. B. The City's primary banking depository shall have a branch located in the City. C. Not more than four weeks and not less than one week before the City Council considers applications for its depository, the City shall publish at least once in the City's official newspaper a notice of the meeting at which applications are to be received. D. A bank, credit union or savings association desiring to be selected as the city depository must deliver its application to the City Secretary on or before the time stated in the notice. The application shall be accompanied by an affidavit disclosing conflicts of interest, if any, that apply to the selection of the depository. The City's Finance Committee may, as directed by City Council, review the applications and prepare a recommendation regarding the selection of depositories for Council. E. The City Council may, after considering the application and the recommendation, if any, of its staff and/or Finance Committee:
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1. select as city depositories one or more banks, credit unions or savings associations that offer the most favorable terms and conditions for the handling of the municipal funds; or 2. reject any or all of the applications. F. The City shall retain the right to withdraw any municipal funds deposited in a depository that are not immediately required to pay obligations of the City and invest those funds as outlined in these Investment and Banking Policies. G. The Director of Finance shall immediately deposit in the depository to the credit of the City any money received. H. Except as provided for wire transfers to other depositories or ACH transfers, the funds of the City may be paid out of a depository only on the checks of the City. I. I. Checks must be signed by the Mayor and either the City Manager or Finance Director. A facsimile signature may be used by the Mayor and/or City Manager. J. Checks must be authorized by the Mayor, City Manager, or Finance Director. K. No check shall be drawn on a special fund created to pay bonded indebtedness other than to pay principal or interest on the indebtedness, or to invest the fund as provided by these polices or law. L. All checks shall be payable by the depository at its place of business. M. The Director of Finance may, with approval of Council, pay a bond, coupon, or other indebtedness of the City at a place other than the depository if by its terms the indebtedness is payable on maturity at the other location. II. COLLATERALIZATION REQUIREMENTS/SAFEKEEPING AND CUSTODY A. All public funds held in a checking account or time deposit at a bank or other depository shall be secured by eligible security. An eligible security means: 1. a surety bond; 2. investment securities (obligations of the United States or its agencies and instrumentalities); or 3. ownership or beneficial interest (but not merely an option contract to
purchase or sell) any authorized investment. B. The market value of the investment securities used as collateral shall be at least 102% of
the value equal to the deposits of public funds increased by the amount of any accrued interest and reduced by the extent of insurance through an agency of the United States. C. Safekeeping 1. A depository for the City may deposit investment securities pledged to secure deposits of public funds with a custodian that the City has approved as a custodian and that is either:
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a. A state or national bank domiciled in the State of Texas and which has a capital stock and permanent surplus of not less than $5 million. b. The Texas Treasury Safekeeping Trust Company; or c. A Federal Reserve Bank or its branches. 2. The securities shall be held in trust by the custodian to secure the deposit of public funds of the City in the depository pledging the securities. 3. On receipt of the investment securities, the custodian shall immediately, by book entry or otherwise, identify on its books and records the pledge of the securities to the City and shall promptly issue and deliver to the Director of Finance of the City trust receipts for the securities pledged. The security evidenced by the trust receipts is subject to inspection by the City or its agents at any time. 4. A custodian holding in trust investment securities of a depository may deposit the pledged securities with a permitted institution. These securities shall be held by the permitted institution to secure funds deposited by the City in the depository pledging the securities. On receipt of the securities, the permitted institution shall immediately issue to the custodian an advice of transaction or other document evidencing the deposit of the securities. When the pledged securities held by a custodian are deposited, the permitted institution may apply book entry procedures to the securities. The records of the permitted institution shall at all times reflect the name of the custodian depositing the pledged securities. The trust receipts the custodian issues to the City shall indicate that the custodian has deposited with the permitted institution the pledged securities held in trust for the depository pledging the securities. 5. The custodian shall maintain separate, accurate, and complete records relating to the pledged investment securities and all transactions relating to the pledged investment securities. D. The Director of Finance shall inform its depositories of significant changes in the amount or activity of public funds reasonably in advance of such changes.
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SectionPart III Investment Policy - City of Formatted: Font: 22 pt
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(Exhibit C) (FY 21024-135 -6212)
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HHuntsville
Post-Employment Benefit Plan
(aka “City of Huntsville PEB Trust”)
(Exhibit C) (FY 21024-135 -6212)
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Section 1 INTRODUCTION
The City of Huntsville Post Employment Benefit Plan (the “Plan”), a retirement plan qualified under Internal Revenue Code Section 115, provides retirement benefits to eligible employees of City of Huntsville.
The assets of the Plan are held in a tax-exempt trust for the benefit of the Plans’ participants and beneficiaries. The objective of the Plan is to provide employees with a source of retirement income from accumulated contributions and investment returns.
The Pension Plan Finance Committee (the “Finance Committee”) is responsible for overseeing and monitoring the investment of the Plans’ assets. It will generally be responsible for:
A. Promulgating the Plans’ Investment Policy Statement.
B. Selecting the investment funds in which the Plans’ assets will be invested and/or the investment managers who will be responsible for investing the Plans’ assets.
C. Reviewing and making changes in the investment funds and/or investment managers for compliance with the Investment Policy Statement.
D. Making revisions to the Investment Policy Statement to reflect changing conditions within the Plans or the investment environment or to make it more effective.
The Finance Committee is authorized to retain professional investment advisory services to provide advice with respect to the investment and monitoring of the Plans’ assets under the guidance of the Finance Committee.
This Investment Policy Statement is intended to set forth the general policies that the Finance Committee will apply in selecting, monitoring and modifying the investments and/or investment managers for the Plans. While the Finance Committee intends for this Investment Policy Statement to assist the Finance Committee in satisfying its fiduciary duties and in making prudent investment decisions, no investment results or performance is, or can be, guaranteed; and no such guarantee is intended.
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Section 2 PURPOSE
This Investment Policy Statement contains guidelines regarding the investment of the assets held in trust for the Plan to assist the members of the Finance Committee in effectively selecting, monitoring and evaluating the investments and/or investment managers for the Plan.
The purposes of this Investment Policy Statement are to:
A. Set forth the investment objectives, policies and guidelines, which the Finance Committee judges to be appropriate and prudent, in consideration of the needs of the Plan.
B. Establish the criteria against which the investments and/or the investment management organizations selected by the Finance Committee are to be measured.
C. Set forth the target asset mix for the investment of the Plans’ assets.
D. Serve as a review document to guide the Finance Committee’s ongoing oversight of the investment of the Plans’ assets.
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Section 3 INVESTMENT OBJECTIVES
It is the intention of the Finance Committee to build and maintain the Plans’ trust through employer contributions that satisfy legal requirements and investment returns. The Finance Committee expects that the amount of investment income plus capital appreciation from the Plans’ trust combined with contributions to the trust will exceed the amount of pension payments. Over shorter periods, the Finance Committee understands that at times investment income plus capital appreciation plus contributions to the trust may, in total, be less than the amount of pension payments.
Because of the long-term nature of the Plans’ obligations, the Finance Committee’s intent is to consider the following goals in managing the trust:
A. Long-term (i.e., five years and more) performance objectives;
B. Maintenance of cash reserves sufficient to pay benefits under the Plan; and
C. Achievement of the highest long-term rate of return practicable without taking excessive risk that could jeopardize the Plans’ funding policy or subject the Plans’ sponsors to undue funding volatility.
The specific investment performance objective is for the trust to achieve a rate of investment return over any five-year period that both:
A. Meets or exceeds the Plans’ actuarial interest rate assumption,
B. Exceeds by 2% the rate of inflation (as measured by the Consumer Price Index for all Urban Consumers),
C. Exceeds the return of the following custom market index: 0% cash, 38% S&P 500, 8% Russell 2000 index, 8% Russell Midcap index, 21% EAFE index, and 25% Barclays Capital Aggregate Bond index.
In carrying out the foregoing policy and objectives, the trust will be invested in accordance with the guidelines set forth in Section 4.
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Section 4 INVESTMENT GUIDELINES FOR ASSET MANAGEMENT
The assets of the Plans will be invested in a manner consistent with generally accepted standards of fiduciary responsibility. The Finance Committee will act with the care, skill, prudence and diligence under the prevailing circumstances that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. The Finance Committee will discharge its duties with respect to the investment of the trust solely in the interest of the participants and beneficiaries of the Plan.
The Finance Committee will select appropriate investment alternatives using the following criteria:
A. The Finance Committee may select investment managers from one or more of the following:
1) Mutual fund management companies;
2) Banks;
3) Registered investment advisory firms; and
4) Insurance companies.
B. Each investment manager must clearly articulate for the Finance Committee the investment strategy that will be followed and document that the strategy has been successfully adhered to over time.
C. Each investment manager must be able to provide for the Finance Committee historical quarterly performance numbers calculated on a time-weighted basis and reported net of all fees.
D. Each investment manager must provide for the Finance Committee volatility measurements so that an appropriate risk/return profile can be evaluated.
E. Each investment manager must be able to provide for the Finance Committee information on its history, key personnel, fee schedules and expenses, and current investment exposure.
F. A City of Huntsville designated Investment Officer may change the Target Allocation and ranges and shall report any change to the Finance Committee
The Finance Committee recognizes that the trust’s long-term investment performance will be greatly affected by the mix of the asset
(Exhibit C) (FY 21024-135 -6212)
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classes in which it is invested; accordingly, because of the policy and objectives stated in Section 3, the trust’s asset allocation will favor equity investments.
Specifically, the Finance Committee has identified the following asset classes to be appropriate for investment by the trust. In addition, the Finance Committee has defined the following ranges to be used as parameters of investment percentages the Plans’ assets:
RANGE
MINIMUM MAXIMUM TARGET
Fixed Income Assets:
20% 30% 25%
Large cap
33% 43% 38%
Mid cap
3% 13% 8%
Small cap
3% 13% 8%
International
16% 26% 21%
Cash/Money Market Assets 0%
5%
0%
Total 100%
Managers that manage a separate account for the trust shall have full discretion over portfolio investment decisions, subject to the following guidelines and restrictions. To the extent that commingled or mutual fund vehicles are utilized, the investment policies of those vehicles are the operative documents established herein:
A. Investment managers will be delegated full discretion to exercise all voting rights including, but not limited to, voting proxies.
B. For purposes of the foregoing, real estate, and securities convertible to common stock shall be classified as equity assets; money held by an insurance company in its general account shall be classified as fixed income assets
(Exhibit C) (FY 21024-135 -6212)
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C. Each investment manager will diversify each asset class appropriately and will seek to moderate volatility and risk as is appropriate for the asset class. The investment manager will not invest in commodities, private placements, or letter stock. The investment manager will not engage in non-covered short sales or margin trading. Transactions consisting of the purchase or sale of futures or options contracts may be permitted to the extent that they are used to diversify or equitize the portfolio and not used as speculative investments. Speculative investment in these derivatives is not permitted without the previous written approval of the Finance Committee.
D. The investment manager must ensure, to the extent practicable, that all equity transactions (whether agency or principal) are executed at competitive rates and all fixed income transactions are competitively bid and must explain in writing to the Finance Committee the reasons for any unusually high transaction costs.
E. The investment manager, when practicable, will disclose to the Finance Committee any significant change in the investment manager’s personnel, organization, ownership, or asset management policy or method.
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Section 5 PERFORMANCE EVALUATION
The investment performance of the individual investments and/or investment managers will be monitored quarterly and reviewed at least annually relative to the objectives and guidelines described herein. The investment performance evaluations may include performance analyses and comparisons with the appropriate indices and investment fund universes.
The Finance Committee does not expect to respond to short-term investment developments, recognizing that the accumulation of value for eventual retirement benefit payout is generally a long-term objective and that investment competence must be measured over a complete market cycle. The Finance Committee, nevertheless, may act on interim qualitative judgments. Qualitative factors which will be reviewed on an ongoing basis include any fundamental changes in a manager’s investment philosophy, organizational structure, financial condition (including any significant changes in total assets under management), personnel and fee structure.
The Finance Committee has established as one of its investment fund and/or investment manager selection criteria that, as a general proposition, over a complete market cycle, each of the Plans’ investment funds and/or investment managers should typically rank in the upper half of the universe of all active investment funds and/or active managers in the same asset class with similar investment objectives.
Performance Review
The investment options will be reviewed at least annually. Among other things, the performance review of the investment options may include the following:
A. The measurement of investment returns.
B. A comparison of investment returns to their appropriate benchmarks.
C. A ranking of investment returns within their appropriate universes.
D. The measurement of risk.
E. An assessment of each investment’s adherence to the stated policies and objectives.
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Termination of Investment Options
Reasons for considering replacing an investment and/or investment manager may include, but are not limited to:
A. Significant under-performance relative to the appropriate benchmark.
B. Significant under-performance relative to the appropriate universe average.
C. Significant change in risk (increase or decrease).
D. Change or loss of key personnel, relative to the significance of the particular investment.
E. Significant increase or decrease in assets under management.
F. A change in business practices.
G. A change in investment style or discipline.
H. Failure to alert the Finance Committee to pertinent changes, lawsuits or regulatory violations.
I. Investing in non-approved securities.
J. Identification by the Finance Committee of a more suitable investment option.
Other Review
The Investment Policy Statement will be reviewed at least annually to determine the continued appropriateness of the Investment Policy Statement in achieving the stated purpose. However, it is not expected that the Investment Policy Statement will change frequently. In particular, short-term changes in the financial markets will not require adjustments to the Investment Policy Statement.
A review of the program concerning the diversity of options, the use of options, A review of the program concerning the diversity of options, the use of the options the growth of the program and any strategic planning concerning demographics will also be conducted periodically.
The Finance Committee will receive a report on investment performance quarterly. Investment performance and results will be presented annually to the Council.
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Exhibit C FY 201-212
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Section 6 INVESTMENT MANAGER SELECTION
The assets of the Plan are invested under the supervision of the Finance Committee. The Finance Committee has chosen to select investment managers from the following asset classes. In addition the Finance Committee has established an investment objective for each asset class and established appropriate benchmarks and universes to be used to evaluate the investment options.
The Finance Committee understands that the indexes selected have no fees associated with their returns and the universe average is net of the fees of the underlying funds. The investment options are not required to exceed their benchmarks and universes every quarter, but are used as a basis for judging the appropriateness of the investment option selected over a full market cycle.
The asset class, objective, benchmark and comparative universe are outlined in Attachment A.
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Section 7 DEFINITIONS
The following terms will have the following meanings:
Investment Manager “Investment manager” means the asset manager or managers expressly authorized and empowered to cause its portion of the trust to be invested and reinvested in its sole discretion (but governed by the provisions of this Investment Policy Statement) within the asset class or classes for which it is employed to manage.
Investment Return “Investment return” means investment income and realized and unrealized gains and losses, all net of investment fees and expenses.
Market Cycle For purposes of this Investment Policy Statement a “market cycle” will be defined as a market peak-to-trough-to-peak (or a trough-to-peak-to-trough).
Rate of Return “Rate of return” means the annual rate of investment return.
Investment Officer “Investment Officer” refers to the council or charter designated officials with the responsibility of investing City funds. Investment officers are required to meet educational requirements under the Public funds
Investment Act.
This Statement of Investment Policy approved by the City Council of the City of Huntsville.
Date: ____________________________ Approved by: _____________________________________
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(Exhibit C) (FY 21024-135 -6212)
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Attachment A
A. Fixed Income Options
Asset Class Objective Benchmark Universe
Cash/Cash Equivalents The investment objective of the Cash Option is to provide capital preservation.
The 3-Month Treasury Bill is the benchmark. N/A
Intermediate Bond The investment objective of the Bond Option is to provide income with a minor focus on
capital growth.
The Bloomberg Barclays Capital Aggregate Bond Index is the benchmark.
The Bond Option selected will be compared to a universe of Intermediate-
Term Bond mutual funds.
B. High Yield Bond Fund
Asset Class Objective Benchmark Universe
High Yield Bond The investment objective of the High Yield Bond Fund is to seek high current income, assuming greater risks including: Credit Risk, Default Risk, Interest Rate Risk, Liquidity Risk, Economic Risk, and Company Risk.
The Bloomberg Barclays Capital High Yield Bond Index is the benchmark.
The High Yield Bond Option will be compared to a universe of High Yield Bond mutual funds.
C. Equity Options - Domestic
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Asset Class Objective Benchmark Universe
Large Capitalization Blend
The investment objective of
the Stock Index option is to track the performance and risk of the Standard & Poor’s
500 index.
The S&P 500 Index is the
benchmark. The investment options will be compared to the return and the risk of the
benchmark.
The investment option
selected will be compared to a universe of Large Capitalization Blend mutual
funds.
Large Capitalization
Value Style
The investment objective of the Large Capitalization
Value Option is to provide long-term growth of capital primarily using domestic
large capitalization securities with a value oriented style of management.
The Russell 1000 Value Index is the benchmark. The
investment option selected will be compared to the return and the risk of the
benchmark.
The Large Capitalization Value Option will be
compared to a universe of Large Capitalization Value mutual funds.
Large Capitalization Growth Style
The investment objective of the Large Capitalization Growth Option is to provide
long-term growth of capital primarily using domestic large capitalization securities with a
growth oriented style of management.
The Russell 1000 Growth Index is the benchmark. The investment option will be
compared to the return and the risk of the benchmark, net of investment
management fees.
The investment option selected will be compared to a universe of Large
Capitalization Growth mutual funds, net of investment management fees.
Mid Capitalization
Value Style
The investment objective of
the Mid Capitalization Value Option is to provide long-term growth of capital primarily
using domestic mid capitalization securities with a value-oriented style of
management.
The Russell Mid-cap Value
Index is the benchmark. The investment option will be compared to the return and
the risk of the benchmark.
The investment option
selected will be compared to a universe of Mid-capitalization Value mutual
funds.
Mid Capitalization Blend Style The investment objective of the Mid Capitalization Blend
Option is to provide long-term growth of capital primarily using domestic mid
capitalization securities with a blend of value and growth oriented styles of
management.
The Russell Mid-cap Index is the benchmark. The
investment option will be compared to the return and the risk of the benchmark.
The investment option selected will be compared to
a universe of Mid Capitalization Blend mutual funds.
Mid Capitalization Growth Style The investment objective of the Mid Capitalization Growth
Option is to provide long-term growth of capital primarily using domestic mid
capitalization securities with a growth-oriented style of management.
The Russell Mid-cap Growth Index is the benchmark. The
investment option will be compared to the return and the risk of the benchmark.
The investment option selected will be compared to
a universe of Mid Capitalization Growth mutual funds.
Small Capitalization Value Style
The investment objective of the Small Capitalization Value Option is to provide long-term
growth of capital primarily using domestic small-cap securities with a value oriented
style of management.
The Russell 2000 Value Stock Index is the benchmark. The investment
option will be compared to the return and the risk of the benchmark.
The investment option selected will be compared to a universe of Small
Capitalization Value mutual funds.
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Asset Class Objective Benchmark Universe
Small Capitalization Blend Style
The investment objective of
the Small Capitalization Blend Option is to provide long-term growth of capital primarily
using domestic small-cap securities with a blend of value and growth oriented
styles of management.
The Russell 2000 Stock
Index is the benchmark. The investment option will be compared to the return and
the risk of the benchmark.
The investment option
selected will be compared to a universe of Small Capitalization Blend mutual
funds.
Small Capitalization
Growth Style
The investment objective of the Small Capitalization
Growth Option is to provide long-term growth of capital primarily using domestic
small-cap securities with a growth oriented style of management.
The Russell 2000 Growth Stock Index is the
benchmark. The investment option selected will be compared to the return and
the risk of the benchmark.
The investment option will be compared to a universe of
Small Capitalization Growth mutual funds.
Exhibit C FY 201-212
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D. Equity Options – Non U.S.
Asset Class Objective Benchmark Universe
International Stock The investment objective of the International Stock Option is to provide long-term growth of
capital primarily using securities of companies located outside of the United States.
The Morgan Stanley/Capital International (MSCI) Europe, Australia and Far East
(EAFE) Stock Index or the MSCI All Country World Index ex. US (ACWI ex US)
will be is the benchmark. The investment option will be compared to the return and the
risk of the benchmark.
The investment option selected will be compared to a universe of International
Stock mutual funds.
Emerging Markets Stock The investment objective of the Emerging Markets Stock
Option is to provide long-term growth of capital primarily using securities of companies
located in emerging countries.
The Morgan Stanley/Capital International (MSCI)
Emerging Markets Stock Index is the benchmark. The investment option will be
compared to the return and the risk of the benchmark.
The investment option selected will be compared to a
universe of Emerging Market Stock mutual funds.
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GLOSSARY ACH: Automated Clearing House. AGENCIES: Federal agency securities. ASKED: The price at which securities are offered. BANKERS’ ACCEPTANCE (BA): A draft or bill of exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) See Offer. BOND PROCEEDS: Proceeds from the sale of bonds, notes, and other obligations issued by an entity, and reserves and funds maintained by an entity for debt service purposes. BOOK VALUE: The original acquisition cost of an investment plus or minus the accrued amortization or accretion. BROKER: A broker brings buyers and sellers together for a commission. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD’s are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COLLATERALIZED MORTGAGE OBLIGATIONS (CMOs): Debt obligations collateralized by pools of mortgages. The collateral can consist of conventional whole loans or agency-backed securities such as GNMAs, FNMAs or FHLMCs. The monthly cash flow generated from the pool is transformed into a
series of securities with differing average lives and maturities. CMOs are issued by investment banks, commercial banks, the FNMA and the FHLMC. The issuer takes a higher yielding security and carves it up into different classes with lower interest rates and shorter maturities. COMMERCIAL PAPER: Commercial Paper consists of short-term note issues by large corporations. Maturity is 270 days or less. There is no explicit coupon rate and interest is figured on a discount basis in the same manner as for Treasury Bills. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual report for the City of Huntsville. It includes five combined statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section. COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond evidencing interest due on a payment date. CUSIP NUMBER: A unique nine-digit identification number permanently assigned by the Committee on Uniform Securities Identification Procedures to each publicly traded security at the time of issuance. If the security is in physical form, the CUSIP number is printed on its face. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer.
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DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued a discount and redeemed at maturity for full face value, e.g. U.S. Treasury Bills. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g. S & L=s, small business firms, students,
farmers, farm cooperatives, and exporters. FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits. FEDERAL FARM CREDIT BANKS (FFCB): The Federal Farm Credit Banks Consolidated Systemwide Bonds are obligations of the 37 Farm Credit Banks. The Farm Credit Administration which is an independent agency of the U.S. Government supervises the Farm Credit System. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Bank vis-a-vis member
commercial banks. FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC): The Federal Home Loan Mortgage Corporation, also known as Freddie Mac, is an agency of the Federal Government. The Participation Certificates (PC) issued by Freddie Mac are full faith and credit obligations of an agency of the U.S. Government. In that all loans purchased by Freddie Mac are either FHA/VA mortgages originated by members of the Federal Home Loan Bank System or other HUD-approved mortgages. FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA OR FANNIE MAE): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation=s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA=s securities are also highly liquid and are
widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of seven member Board of Governors in Washington, D.C., 12 regional banks and about 5,700 commercial banks that are members of the system. FINANCIAL INSTITUTIONS: As used in
(Exhibit C) (FY 21024-135 -6212)
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these policies also refers to Security Broker/Dealers doing business with the City. FUNDS: Public funds in the custody of a local government that the investing entity has authority to invest. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA OR GINNIE MAE): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA or FMHM mortgages. The term “pass-throughs” is often used to describe Ginnie Maes. INVESTMENT POOL: An entity created under this code to invest public funds jointly on behalf of the entities that participate in the pool and whose investment objectives in order of priority are (a) preservation and safety of principal; (b) liquidity; and (c) yield. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The current face or par value of an investment multiplied by the net selling price of the security as quoted by a recognized market pricing source quoted on the valuation date. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase-reverse repurchase agreements that establishes each party=s rights in the transactions. A master
agreement will often specify, among other things, the right of the buyer-lender to liquidate the
underlying securities in the event of default by the seller-borrower. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which securities are traded that have one year or less until their maturity. MONEY MARKET MUTUAL FUNDS: A mutual fund with investments that mature within one year. MUTUAL FUNDS: A type of investment company that pools investments from participants to purchase a portfolio and give to investors fractional ownership of the created portfolio. A mutual fund redeems investors=
shares at the net asset value of the shares. NATIONAL ASSOCIATION OF SECURITIES DEALERS (NASD): A trade association that helps regulate the performance of the over-the-counter securities market. NET ASSET VALUE (PER SHARE): The value of the securities underlying one share in the investment company. NO-LOAD MONEY MARKET MUTUAL FUND: A mutual fund that imposes no initial sales charges or fees. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer.) See Asked and Bid. OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve=s most important and most flexible monetary policy tool. PORTFOLIO: Collection of securities held by
(Exhibit C) (FY 21024-135 -6212)
33
an investor. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker-dealers, banks, and a few unregulated firms. PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state--the so-called legal list. In other states the trustee may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits. QUALIFIED REPRESENTATIVE: A person who holds a position with a business organization, who is authorized to act on behalf of the business organization, and who is one of the following: (A) for a business organization doing business that is regulated by or registered with a securities commission, a person who is registered under the rules of the National Association of Securities Dealers; (B) for a state or federal bank, a savings bank, or a state or federal credit union, a member of the loan committee for the bank or branch of the bank or a person authorized by corporate resolution to act on behalf of and bind the banking institution; or (C) for an investment pool, the person authorized by the elected official or board with authority to administer the activities of the investment pool to sign the written instrument on behalf of the
investment pool. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond the current income return. RATING AGENCY: A nationally recognized investment rating firm including Moody’s and Standard & Poor’s that assigns a rating to a debt issue. REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller”
money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money, that is, increasing bank reserves. State Statute defines repurchase agreement as a simultaneous agreement to buy, hold for a specific time, and sell back at a future date obligations described in State Statute Section 2256.009 a (1) (obligations of the United States or its agencies and instrumentalities) at a market value at the time the funds are disbursed of not less than the principal amount of the funds disbursed. The term includes a direct security repurchase agreement and a reverse repurchase agreement. REVERSE REPURCHASE AGREEMENT: See Repurchase Agreement. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank=s vaults for protection. SEC RULE 15C3-1: See Uniform Net Capital Rule. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE
(Exhibit C) (FY 21024-135 -6212)
34
COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEPARATELY INVESTED ASSET: An account or fund of a state agency or local government that is not invested in a pooled fund group. STATE AGENCY: An office, department, commission, board, or other agency that is part of any branch of state government, an institution of higher education, and any nonprofit corporation acting on behalf of any of those entities. TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than 10 years. TREASURY NOTES: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.
(Exhibit C) (FY 21024-135 -6212)
35
FY 17-18 Approved Broker/Dealer List Gilbert Ramon Cantor Fitzgerald & Company 1700 Post Oak Boulevard 2 BLVD Place, Suite 250 Houston, TX 77056 gilbert.ramon@cantor.com Zachary Brewer FTNTony Sekaly Coastal Securities 920 Memorial City Way, 11th Floor Houston, TX 77024 zach.brewerZSB@coastalsecuritiesftnfinancial.com tsekaly@bloomberg.net Chuck Landry Wells Fargo Securities, LLC 1445 Ross Ave., Suite 210 Dallas, TX 75202 Chuck.Landry@wellsfargo.com Richard “Dick” Ebert UBS Financial Services, Inc. 10001 Woodloch Forest Drive, Suite 100 The Woodlands, TX 77380 Richard.ebert@ubs.com Luke Donenfield StifelFirst Empire Securities 100 Motor Parkway, 2nd Floor Happauge, NY 11788 ldonenfeld@1empire.com Patrick Boyer Doug Boyer Duncan Williams 11458 W. Travelers Way Circle Houston, TX 77065 Patrick.boyer@duncanwilliams.com Doug.boyer@duncanwilliams.com
Anne Jenkins Cullen Asher, LLCA.J. Capital Gregory R Thompson 3224915 Baywick DriveN. St. Paul St., 31st Floor DallasSpring, TX 773895201 gthompson@cullenasher.comAjcap@earthlink.net Bank of Oklahoma BOSC, Inc. 333 West Campbell Road Suite 350 Richardson, TX 75080 jwall@bokf.com Greg Pagans Multi-Bank Securities, Inc. 2400 E. Commercial, Suite 812 Ft. Lauderdale, FL 33308 GPagans@mbssecurities.com
Vining Sparks, IBG, LP Anthony Nelson – Sr. V.P. 2107 Elliot Ave, Ste. 208 Seattle, WA 98121 anelson@viningsparks.com
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(Exhibit C) (FY 21024-135 -6212)
36
Exhibit D FY 21-22 Fee Schedule
Processing Fee on all debit/credit card transactions 2.5%
Airport Ground Lease 15¢ per square foot, per year
Alcohol Beverages Licenses and Permits (City Fee Only)Variable: Refer to Texas Administrative Code
Copies of Public Information
Variable dependent on document or material type, as set by the Texas
Administrative Code, plus an additional 25%.
Certificate of Compliances
City Limits $35
ETJ $35
Flood Plain $50
Minor Plats (includes amending & replats)$200
Preliminary Plat $300
Final Plats (includes amending & replats)$300
Filing Fees Actual Cost
District Map Amendment $300
Request for Compliance/Zoning Verification Letters $35 each plus any copy expenses
Variance/Appeal request $300
Conditional Use Permit $300
Subdivision Modification/Waiver $300
Street Name Change $350
GIS/MicroStation Map
Letter size (8.5" x 11")$1
Legal size (8.5" x 14")$1
Tabloid size (11" x 17")$2
Small (18" x 23")$5
Medium (24" up to 35")$8
Large (greater than 35")$10
Map/Plat/Plan Copy/Deed, etc. Fees (copies of existing documents)
Letter size (8.5" x 11")$0.10
Legal size (8.5" x 14")$0.10
Tabloid size (11" x 17")$0.25
Small (18" up to 23")$3
Medium (24" up to 35")$4
Large (36" & greater)$5
Building Permits (Residential)
New Residential/Addition 0 - 500 Sq. Ft / $0.75 per Sq. Ft (Minimum $35.00)
501 - 1000 Sq. Ft / $0.70 per Sq. Ft
1001 - 2000 Sq. Ft / $0.65 per Sq. Ft
Over 2000 Sq. Ft / $0.55 per Sq. Ft
Residential Renovation & Accessory
$65 for the first 250 sq. ft. / lineal ft. + $0.35 per each additional sq. ft./ lineal ft.
over 250 sq. ft./ lineal ft.
Residential All Other $35.00 Per Required Inspection
Schedule of Fees and Charges
All Municipal Services
Airport
City Secretary
Development Services
1
Exhibit D FY 21-22 Fee Schedule
Plan Checking Fee
Less than $35,000 valuation No Fee
$35,000 valuation or more One-half of building permit fee
Building Permits (Commercial)
Based on Valuation
Less than $1,000 $35 inspection fee
$1,001 to $50,000 $35 for first $1,000 + $5 per each additional $1,000
$50,001 to $100,000 $280 for the first $50,000 + $4 per each additional $1,000
$100,001 to $500,000 $480 for the first $100,000 + $3 per each additional $1,000
Over $500,001 $1,680 for the first $500,000 + $2 per each additional $1,000
Electrical Permits
Commercial project fee $60
Fee for issuing each permit
Residential dwelling & accessory permit fees:
(This includes but may not be limited to single family attached, single family
detached, duplex’s, manufactured housing, additions and accessory structures.
Based on the square footage of construction.)
Finished Square Feet
Less than 1,000 square feet $70
1,000 square feet or greater.
$70.00 for the first 1,000 square feet + $4.00 per 100 square feet or fraction thereof in
excess of 1,000 square feet.
All other fees:
(Fees shall be computed on the “total valuation of work”,
the dollar value of labor and materials
(total cost to the customer).
Valuation Of Work
Not more than $2,000.00 $50
Over $2,000.00 to $50,000.00 $50.00 for the first $2,000.00 plus $5.00 for each additional $1,000.00, or fraction thereof
Over $50,000.00 to $500,000.00 $290.00 for the first $50,000.00 plus $4.00 for each additional $1,000.00, or fraction thereof
Over $500,000.00
$2,090.00 for the first $500,000.00 plus $3.00 for each additional $1,000.00, or fraction
thereof
Fire Standpipe/Line & Sprinkler Permits
Fee for issuing each permit $50
1 to 5 sprinkler heads $2
Over 5 sprinkler heads $.50 each
Fire Line/Standpipe $100 each
Fire Alarm Permits Based on Valuation
Less than $1,000 $35 Inspection fee
$1,001 to $50,000 $35 for the first $1,000 + $5 per each additional $1,000
$50,001 to $100,000 $280 for the first $50,000 + $4 per each additional $1,000
$100,001 to $500,000 $480 for the first $100,000 + $3 per each additional $1,000
$500,001 and over $1,680 for the first $500,000 + $2 per each additional $1,000
Note: For commercial projects over $250,000, Plan Check Fee payable upon application submittal for Plan review/check
2
Exhibit D FY 21-22 Fee Schedule
Fire Suppression System Permits
Less than $1,000 $35 Inspection fee
$1,001 to $50,000 $35 for the first $1,000 + $5 per each additional $1,000
$50,001 to $100,000 $280 for the first $50,000 + $4 per each additional $1,000
$100,001 to $500,000 $480 for the first $100,000 + $3 per each additional $1,000
$500,001 and over $1,680 for the first $500,000 + $2 per each additional $1,000
Fuel Dispensing/Storage Permits
Less than $1,000 $35 fee
$1,001 to $50,000 $35 for the first $1,000 + $5 per each additional $1,000
$50,001 to $100,000 $280 for the first $50,000 + $4 per each additional $1,000
$100,001 to $500,000 $480 for the first $100,000 + $3 per each additional $1,000
$500,001 and over $1,680 for the first $500,000 + $2 per each additional $1,000
Grading and Excavation Plan Checking Fee
Less than 5,000 cubic yards No Fee
5,000 to 10,000 cubic yards $20
10,001 to 100,000 cubic yards $20 for first 10,000 CY + $10 per each additional 10,000 CY
100,001 to 200,000 cubic yards $110 for first 100,000 CY + $6 per each additional 10,000 CY
Over 200,001 cubic yards $170 for first 200,000 CY + $3 per each additional 10,000 CY
Grading and Excavation Permits
Less than 50 cubic yards $10
51 to 100 cubic yards $15
101 to 1,000 cubic yards $15 for first 100 CY + $7 per each additional 100 CY
1,001 to 10,000 cubic yards $78 for first 1,000 CY + $6 per each additional 1,000 CY
10,001 to 100,000 cubic yards $132 for first 1,000 CY + $27 per each additional 1,000 CY
Over 100,001 cubic yards $375 for first 10,000 CY + $15 per each additional 1,000 CY
Irrigation Permits
Fee for issuing each permit $50
Commercial project fee $60
1 to 5 sprinkler heads $2
Over 5 sprinkler heads $.20 each
Backflow Prevention Devices
1 to 5 $2.50
Over 5 $1.50 each
Manufactured/Mobile Home Permits
Electrical $40
Placement $75
Plumbing $40
Plumbing Connection with Gas $42
Mechanical $45
Plumbing Permits
Commercial project fee $60
Residential dwelling & accessory permit fees:
(This includes but may not be limited to single family attached, single family detached,
duplex’s, manufactured housing, additions and accessory structures. Based on the square
footage of construction.)
3
Exhibit D FY 21-22 Fee Schedule
Finished Square Feet
Less than 1,000 square feet $70
1,000 square feet or greater.
$70.00 for the first 1,000 square feet + $6.00 per 100 square feet or fraction thereof in
excess of 1,000 square feet.
Valuation Of Work
Not more than $2,000.00 $50
Over $2,000.00 to $50,000.00 $50.00 for the first $2,000.00 plus $5.00 for each additional $1,000.00, or fraction thereof
Over $50,000.00 to $500,000.00 $290.00 for the first $50,000.00 plus $4.00 for each additional $1,000.00, or fraction thereof
Over $500,000.00
$2,090.00 for the first $500,000.00 plus $3.00 for each additional $1,000.00, or fraction
thereof
Mechanical Permits
Commercial project fee $60
Residential dwelling & accessory permit fees:
(This includes but may not be limited to single family attached, single family detached,
duplex’s, manufactured housing, additions and accessory structures. Based on the square
footage of construction.)
Finished Square Feet
Less than 1,000 square feet $70
1,000 square feet or greater.
$70.00 for the first 1,000 square feet + $4.00 per 100 square feet or fraction thereof in
excess of 1,000 square feet.
All other fees:
(Fees shall be computed on the “total valuation of work”, the dollar value of labor and materials (total cost to the customer).
Valuation Of Work
Not more than $2,000.00 $50
Over $2,000.00 to $50,000.00 $50.00 for the first $2,000.00 plus $5.00 for each additional $1,000.00, or fraction thereof
Over $50,000.00 to $500,000.00 $290.00 for the first $50,000.00 plus $4.00 for each additional $1,000.00, or fraction thereof
Over $500,000.00
$2,090.00 for the first $500,000.00 plus $3.00 for each additional $1,000.00, or fraction
thereof
After Hours Inspection Fee - 4 hr. Minimum $50/hr. ($200 Minimum)
Re-Inspection Fee $35
Work performed without a permit Equal to twice the cost of the permit
Sign Permits 25¢/sq. ft. (minimum $5) + $10/linear ft. of sign height + $25/permit
Temporary Sign Permits -Non Profits Only $25
Public Improvement Permits 3% of valuation of public improvements
Utility Permits
Water Tap See Other Utility-Related Fee Section
Sewer Tap See Other Utility-Related Fee Section
Fire Line Tap See Other Utility-Related Fee Section
Other Permits
On Site Sewage Facility $200
Moving $100
Demolition $35
Driveway Approach $35
Vendor/Peddler Permits $50 - valid 90 days in 1 location (separate permit required for each location)
4
Exhibit D FY 21-22 Fee Schedule
Contractor Registration Fees
General Contractor - Residential & Commercial $60
HVAC $60
Plumbing - All License Types No Fee
Electrical - All License Types No Fee
Fire Suppression System Installers $60
Irrigator $60
Backflow Tester $60
Residential Appliance Installers $12
Swimming Pool/Spa Annual Permits $100
Food Service Establishment Annual Health Permits Based on # of employees
1-3 Employees $150
4+ employees $250
Late Permit Fee 1/2 of permit fee
Food Service Establishments Pre-Opening Fee $60
Food Service Establishments Re-Inspection Fee $300
Itinerant Restaurant Permits (1-3 days)$25 per Event
Non-Profit Organizations, Annual Health Permits $60
Mobile Food Units Annual Health Permits $250
Late Permit Fee 1/2 of permit fee
Daycare Facilities Annual Health Permits $150
Late Permit Fee 1/2 of permit fee
Culverts/Driveways Installations by City Actual Cost
Mobile Food Vendor Permit - Annual $200 (Separate permit required for each location)
Mobile Food Vendor Permit - Temporary $50 (Valid 90 days - separate permit required for each location)
Shared Mobility Device Permits $200 Application Fee + $3.00 per Shareable Mobility Device
5
Exhibit D FY 21-22 Fee Schedule
Softball/Baseball Field
Youth Leagues $5 per person
Adult Leagues $10 per person
Day Rental, Private Use (Josey Park field included)$25 per hour
Night Rental, Private Use (Josey Park field included)$25 per hour
Field Prep $25 - one time at start
Security Deposit $50 - returned after key return
Lights $25 per hour of field usage
Tournaments City Residents: $100 plus hourly Rate
Walker County Residents: $125 plus hourly rate
Non-Residents: $150 plus hourly rate
Soccer/Football Fields
Youth Leagues $5 per person
Adult Leagues $10 per person
Field prep $ 45 - one time at start
Security Deposit $50 - returned after key return
Lights $25 per night
Tournaments $100 a day per field
Field Rental, Private Use $25 per hour
Basketball Court
Day Rental, Private Use $25 per hour
Youth Leagues $5 per person
Adult Leagues $10 per person
Tournaments City Residents: $100 plus hourly Rate
Walker County Residents: $125 plus hourly rate
Non-Residents: $150 plus hourly rate
Martin Luther King, Jr Center
Rental Fee $150 per day
Security Deposit $200
Park Rental
Park Permit $150
Deposit $100
Cancellation (6-15 Business Days Prior)1/2 of Deposit returned
Cancellation (Within 5 Business Days)No Deposit returned
Zumba Admission
Per Class per Person $2
Program Fees Additional Line Item: Costs Vary
Admission
Adults Age 12 and Up $4.00
Children Age 3 to 11 $2.50
Children Age 2 or less No Charge
Day Care Fees $2.50 per child
Season Pass
Adults Age 12 and Up $50
Children Age 3 to 11 $40
Family $100 for first four members + $20 per each additional member
Swimming Lessons $45 per course
Water Aerobics $75 annually/$25 quarterly
Lap Swimming Fees
Session 1 - September, October and November $25
Session 2 - December, January and February $25
Session 3 - March, April and May $25
Sessions 1, 2 and 3 $60
Pool Rental- Private $100.00 per hour (maximum 2 hours)
Program Fees Varies
Recreation Services
Aquatic Center
6
Exhibit D FY 21-22 Fee Schedule
Cemetery Space
$1,000
Filing Fee Actual Cost
Landscape Repair Fee after Exhumations $250
Cemetery Operations
Plot
7
Exhibit D FY 21-22 Fee Schedule
Fines - Daily
Fines - Over due
Books 10¢
Magazines 10¢
DVDs $1
Audiobook $1
Music 10¢
Maximums $10
Interlibrary Loans (daily fine)$1
Interlibrary Loans Maximums $30
Board Games $1
Copies & Prints
Black and white 15¢ per page
Color 75¢ per page
Sales (donated items)
Audio Book $1
Music CD $1
Video $1
Hardback Book $1
Paperback Book 25¢ each
Children's Hardback Book 50¢ each
Children's Paperback Book 25¢ each
Walker Co. stories CDs $5
Lost or Damaged Materials
Library Card $1
Lost Materials Replacement cost plus $10 processing fee
Barcode $1
Security Patch $1
Book Jacket $1
Spine Label $1
DVD Case $1
Audio Book Case $5
Board Games (Replaceable Part)$1
Board Games (Non replaceable part)Greater of $10 or half of the cost of the item
Board Game (total replacement)Replacement cost plus $10 processing fee
Room Rentals - Payment due at booking
Deposit for all groups -Refundable if the room is left in good order $150
After-hours surcharge (all groups hourly) $30 Additional expense for holding an event outside business hours.
Audio/Visual equipment (per event)$20
Community Room or Board Room
For-profit groups outside Walker County $150 for 1st hour, $50 each subsequent hour
For-profit groups within Walker County $100 for 1st hour, $50 each subsequent hour
Other groups or individuals outside Walker County $25 per hour
Other groups or individuals within Walker County $25
Walker County non-profit No Charge
Outside Walker County non-profits $25
Outside Walker County - parties, receptions, etc.$50
After-hours Surcharge (applicable to all groups)additional $30 per hour
Deposit $150
Library Services
8
Exhibit D FY 21-22 Fee Schedule
Tours
Historical Driving Tour $3 per person - $30.00 minimum
The Heritage Home Tour $6 per person - $60.00 minimum
Rental of Wynne Home
Brown Wynne Gallery
Non-Profit $45 per hour - 2 hr. minimum
Private $50 per hour - 2 hr. minimum
Rental of Meeting Room
Non-Profit $35 per hour - 2 hr. minimum
Private $40 per hour - 2 hr. minimum
Wynne Home and Grounds
Non-Profit $800 Total Up to 8 hrs.
Private $1,000 Total Up to 8 hrs.
Wynne Home
Non-Profit $400 Total Up to 4 hrs.
Private $500 Total Up to 4 hrs.
Porch and Grounds
Non-Profit $400 Total Up to 8 hrs.
Private $500 Total Up to 8 hrs.
Kitchen Rental - Outdoor events
Non-Profit $35 per hour - 2 hr. minimum
Private $40 per hour - 2 hr. minimum
Rental of China (See also "Security Fee")$25
Rental of Tablecloths $25
Beverages
Water (12 oz bottle)$1 per bottle
Security Deposits
Regular business hours No deposit required
Outside regular business hours 50% of fee
Security Fee (Refundable)
40+ persons and outside regular business hours $150
Wynne Home China $100
Rental of Audio Visual
Projector and screen $15
Floor lectern/Easel/Microphone No Charge
William Hodges Education Building
Meeting Room
Rental Fee $100 for 1st hour + $50 each subsequent hour
Security Deposit - due upon booking $150
Use of Audio/Visual Equipment $20 per rental
Security Fee
Police security will be required in accordance with
applicable City policies and directives $35 per hour
Table Cloth Rentals $30 ea.
Stand with Sam Brick Pavers
4 x 8 paver $100
5 x 8 paver $250
6 x 12 paver $500
12 x 12 paver $1,000
16 x 16 paver $5,000
Event Fees Varies
Big Sam's Honor Club $35
Film Friendly Texas
Total or disruptive use (regular operating hours) of a City of Huntsville building, $500 per day
park, or public area that is not subject to set rental fees.
Partial, non-disruptive use of a City of Huntsville building, or park facility $250 per day
Total closure or obstruction of public street or right-of-way, including parking lots
and on-street parking. Applicants must submit an events permit request to
the Huntsville Police Department $50 per block or lot, per day
Partial closure or obstruction of public street or right-of-way, including parking
lots and on-street parking $25 per block, per day
Use of City parking lots, parking areas, and City streets (for the purpose of
parking film trailers, buses, catering trucks, and other large vehicles) $50 per block or lot, per day
Tourism & Cultural Services
9
Exhibit D FY 21-22 Fee Schedule
Sexually Oriented Business Permits
Original Application $400
Renewal Application $200
Wrecker Permits $50/yr. per holder + $60/yr. per tow truck
Taxi/Chauffer $100/yr. per taxi
Accident Report $6 $11 online ($5 provider fee)
Fingerprinting Fee $10 per person
Posted Hourly Parking Fee -$1.00 per hr. / Max $5.00
Residential Alarm Fees
0-3 False Alarms No Charge
4-5 False Alarms $25 each
6-8 False Alarms $50 each
Over 8 False Alarms $100 each
Commercial Alarm Fees
0-3 False Alarms No Charge
4-5 False Alarms $50 each
6-8 False Alarms $75 each
Over 8 False Alarms $100 each
Alarm Fees
Initial permit $10 residential/$30 commercial
Alarm Co. Failure to Provide Accurate Info $25
$50
Failure to Notify of Address Changes, etc.$50
Reinstatement Fee $100
Appeal Fee $25
Animals and Fowl
$50
Replacement of lost Dangerous Dog ID Tag $10
Tow Truck Companies Fee Allowed to be Charged by Tow Truck Company *Not Collected by City*
All Police Directed Tows $200
Debris Removal $35
Waiting, per hour after the first hour $25
Notification $50
Preservation $20
Copies of Open Records
Variable dependent on document or material type, as set by the Texas
Administrative Code, plus an additional 25%.
Public Safety
Permittee Fail to Respond to Alarm Location w/in 30 mins at Request of Police
Annual Registration Fee for Dogs Deemed as Dangerous by Animal Control Authority
10
Exhibit D FY 21-22 Fee Schedule
Fire Department Cost Recovery - (Non-County Residents)
Motor Vehicle Incidents
Level 1- Basic Incident with hazardous materials assessment and scene
stabilization $494
Level 2- includes level 1 plus clean-up of fluids $562
Level 3- Vehicle Fire $687
Add-ons:
Extrication $1,483
Landing Zone $454
Hazmat
Level 1- Basic response:
Engine response, first responder assignment, perimeter establishment,
evacuations, set-up and command $796
Level 2- Intermediate Response:
Level 1 plus Hazmat team and equipment, Level A or B suit donning, breathing
air, detection equipment, and decon $2,842
Level 3- Advanced Response:
Level 1 and 2 plus recovery and identification of materials, disposal and
environmental clean-up.$6,707
Special Rescues -High Angle, Water Rescues, other Specialized Rescue
Itemized billing:
Per hour per response vehicle +$455
Per hour per rescue person $57
For incidents that require extended time on scene response will be itemized
Engine $455 per hour
Truck $568 per hour
Miscellaneous Equipment $341 per hour
11
Exhibit D FY 21-22 Fee Schedule
Single Family Residential
First 3,000 gallons
.75 inch meter $13 per month
1 inch meter $19 per month
1.5 inch meter $25 per month
2 inch meter $41.50 per month
3 inch meter $163 per month
4 inch meter $208 per month
6 inch meter $313 per month
8 inch meter $433 per month
Between 3,000 and 7,000 gallons $5.09 per thousand gallons
Between 7,001 and 13,000 gallons $5.60 per thousand gallons
Over 13,000 gallons $6.36 per thousand gallons
Jointly Metered Residential/Multi-Family
First 3,000 gallons
.75 inch meter $13 per month
1 inch meter $19 per month
1.5 inch meter $25 per month
2 inch meter $41.50 per month
3 inch meter $163 per month
4 inch meter $208 per month
6 inch meter $313 per month
8 inch meter $433 per month
Jointly Metered Residential
Between 3,000 and 7,000 gallons $5.09 per thousand gallons
Over 7,001 gallons $6.36 per thousand gallons
Multi-Family
Over 3,000 gallons $6.36 per thousand gallons
Commercial Metered
First 3,000 gallons
.75 inch meter $15 per month
1 inch meter $21 per month
1.5 inch meter $27 per month
2 inch meter $43.50 per month
3 inch meter $165 per month
4 inch meter $210 per month
6 inch meter $315 per month
8 inch meter $435 per month
Over 3,000 gallons $6.36 per thousand gallons
Institutional Users
First 3,000 gallons
.75 inch meter $15 per month
1 inch meter $21 per month
1.5 inch meter $27 per month
2 inch meter $43.50 per month
3 inch meter $165 per month
4 inch meter $210 per month
6 inch meter $315 per month
8 inch meter $435 per month
Over 3,000 gallons $6.87 per thousand gallons
Irrigation
First 3,000 gallons
.75 inch meter $15 per month
1 inch meter $21 per month
1.5 inch meter $27 per month
2 inch meter $43.50 per month
3 inch meter $165 per month
4 inch meter $210 per month
6 inch meter $315 per month
8 inch meter $435 per month
Water Services
12
Exhibit D FY 21-22 Fee Schedule
Residential
Between 3,000 and 7,000 gallons $5.09 per thousand gallons
Between 7,001 and 13,000 gallons $5.60 per thousand gallons
Over 13,000 gallons $6.36 per thousand gallons
Jointly Metered Residential
Between 3,000 and 7,000 gallons $5.09 per thousand gallons
Over 7,001 gallons $6.36 per thousand gallons
Multi-Family
Over 3,000 gallons $6.36 per thousand gallons
Commercial
Over 3,000 gallons $6.36 per thousand gallons
Institutional
Over 3,000 gallons $6.87 per thousand gallons
Fire Hydrant Meters
First 3,000 gallons $165 per month
Over 3,000 gallons $6.87 per thousand gallons
Note: Water rates for customers outside the city limits are calculated in the
same manner as rates for customers within the city limits; however, a multiplier
of 1.50 shall be applied to the cost components listed above.
Single Family/Jointly Metered Residential
First 2,000 gallons $14.33 per month
Over 2,000 gallons $5.36 per thousand gallons
Note: Each individually metered residential dwelling unit shall be charged a monthly wastewater service charge and a volume charge based upon the
average amount of water consumed during the months of November, December, January and February of each year, rounded to the nearest 100 gallons.
Customers moving onto an existing or newly constructed, single family residential unit shall billed for sewer at eighty percent (80%) of current
monthly consumption up to a maximum monthly amount for 10,000 gallons until the winter month history is established.
Residential customers not connected to the waterworks system of the city shall be billed monthly by the city for wastewater services at a calculated
rate based on the average residential water consumption of sixty-eight hundred (6,800) gallons $40.06, or at a rate based on the average
water consumed during the months of November, December, January and February of each fiscal year from the billing records of a special water district.
Commercial/Institutional Users
First 2,000 gallons $16.54 per month
Over 2,000 gallons $5.36 per thousand gallons
Commercial customers shall be billed at a rate that is consistent with the regular wastewater charge of similar type businesses, premises or users
receiving service from the city. The utility office supervisor shall recommend for approval such service charge and conditions as deemed appropriate to
the Finance Committee of the City Council and the Finance Committee shall approve the same.
Septic Waste Disposal Fee
Septic Waste Receiving Station $0.09 per gallon
Septic Waste Hauler Permit $100 per year
No Charge
$25.00
6-7 False Alarms $50.00
8+ False Alarms $100.00
0-3 False Alarms
4-5 False Alarms
Sewer Service Call (normal business hours, found to be on customer side)
Wastewater Services
13
Exhibit D FY 21-22 Fee Schedule
Per Month Fee
Residential Collection
Single Family Households-Inside City Limits $22.70
Additional Collection Cart $12.10
Business Minimum Inside City Limits Collection $23.88
Additional Collection Cart $12.10
Per Month Fee per Unit
Multi-Family Residential Collection
Individually Metered Units With Dumpster $22.70
Individually Metered Units Without Dumpster $22.70
Jointly Metered Units Without Dumpster $22.70
Jointly Metered Units With Dumpster By size of container and number of pickups (see below)
Commercial Collection-INSIDE City Limits-Dumpsters and Roll Offs
Per Month Fee
2 Yard Dumpster
1 Collection per week $74.35
2 Collections per week $124.95
3 Collections per week $175.54
4 Collections per week $226.13
5 Collections per week $276.74
Per Pickup Fee
Unscheduled/Extra Pickups - ONSITE $34.49
Unscheduled/Extra Pickups - Start from Transfer Station $46.00
After Hours/Extra Pickups $74.35
Per Month Fee
4 Yard Dumpster
1 Collection per week $94.55
2 Collections per week $165.38
3 Collections per week $236.18
4 Collections per week $306.99
5 Collections per week $377.79
Per Pickup Fee
Unscheduled/Extra Pickups - ONSITE $48.28
Unscheduled/Extra Pickups - Start from Transfer Station $64.38
After Hours/Extra Pickups $94.46
Per Month Fee
6 Yard Dumpster
1 Collection per week $114.77
2 Collections per week $205.79
3 Collections per week $296.80
4 Collections per week $387.83
5 Collections per week $478.84
Per Pickup Fee
Unscheduled/Extra Pickups - ONSITE $62.06
Unscheduled/Extra Pickups - Start from Transfer Station $82.75
After Hours/Extra Pickups $114.77
Per Month Fee
8 Yard Dumpster
1 Collection per week $134.98
2 Collections per week $246.21
3 Collections per week $357.44
4 Collections per week $468.67
5 Collections per week $579.90
Solid Waste Services
14
Exhibit D FY 21-22 Fee Schedule
Per Pickup Fee
Unscheduled/Extra Pickups - ONSITE $75.83
Unscheduled/Extra Pickups - Start from Transfer Station $101.13
After Hours/Extra Pickups $134.98
Excessive Wear and Tear of Dumpsters
Dumpster Cleaning $91.93
Dumpster Cleaning and Painting $135.14
Dumpster Cleaning and Painting when Burned $323.59
Dumpster Cleaning, Painting and Bottom Replacement when Burned $624.03
Dumpster emptied due to placement of large item
No flat fee, charged as unscheduled pickup from transfer station according to
dumpster size
Each Lid
Replacement Lids and Bars - Stolen, Unauthorized Removal or Damage $37.85
Per Month Fee Plus Tonnage Fee of $72.15 per ton
Open Top Roll-off - Inside City Limits
1 Collection per week $453.67
2 Collections per week $766.36
3 Collections per week $1,079.05
4 Collections per week $1,391.74
5 Collections per week $1,704.43
Trip Fee Plus Tonnage Fee of $72.15 per ton
Extra Pickups $119.46
Call In $256.54
Stand-by $256.54
Trip Fee Plus Tonnage Fee of $72.15 per ton
Compacting Roll-off
Scheduled $173.49
Unscheduled $216.88
Extra Pickups $121.67
Roll-off Inactivity Fee $256.54
Per Trip Based on Compactor Type
Repositioning $144.43
Set Fees and Deposits
$162.23
Inside City Limits (To Drop Off Roll-Off) One Time Fee
$1,500.00
Commercial Collections for OUTSIDE City Limits, TDCJ, SHSU - Dumpsters & Roll-offs
Per Month Fee
Commercial Collection By size of container and number of pickups (see below)
2 Yard Dumpster
1 Collection per week $88.51
2 Collections per week $148.75
3 Collections per week $208.99
4 Collections per week $269.22
5 Collections per week $329.46
Per Pickup Fee
Unscheduled/Extra Pickups - ONSITE $41.05
Unscheduled/Extra Pickups - Start from Transfer Station $54.74
After Hours/Extra Pickup $88.51
Roll-off Container Set Fee, New Commercial and Existing Commercial Contractors,
DEPOSIT - New Commercial Contractors, Inside City Limits
15
Exhibit D FY 21-22 Fee Schedule
Per Month Fee
4 Yard Dumpster
1 Collection per week $112.58
2 Collections per week $196.87
3 Collections per week $281.17
4 Collections per week $365.46
5 Collections per week $449.76
Per Pickup Fee
Unscheduled/Extra Pickups - ONSITE $52.21
Unscheduled/Extra Pickups - Start from Transfer Station $69.64
After Hours/Extra Pickup $112.58
Per Month Fee
6 Yard Dumpster
1 Collection per week $136.63
2 Collections per week $244.99
3 Collections per week $353.34
4 Collections per week $461.70
5 Collections per week $570.04
Per Pickup Fee
Unscheduled/Extra Pickups - ONSITE $63.37
Unscheduled/Extra Pickups - Start from Transfer Station $82.46
After Hours/Extra Pickup $136.63
Per Month Fee
8 Yard Dumpster
1 Collection per week $160.69
2 Collections per week $293.11
3 Collections per week $425.52
4 Collections per week $557.93
5 Collections per week $690.35
Per Pickup Fee
Unscheduled/Extra Pickups - ONSITE $74.52
Unscheduled/Extra Pickups - Start from Transfer Station $99.41
After Hours/Extra Pickup $160.69
Per Month Fee Plus Tonnage Fee of $78.08 per ton
Open Top Roll-off
1 Collection per week $540.09
2 Collections per week $912.33
3 Collections per week $1,284.59
4 Collections per week $1,656.83
5 Collections per week $1,844.62
Per Trip Fee Plus Tonnage Fee of $78.08 per ton
Extra Pickups $142.20
Call In $305.37
Stand-by $305.37
Disposal Fees at Scale House
Basic Fee - Inside City Limit $66.72 per ton
Basic Fee - Outside City Limit, TDCJ, SHSU $83.40 per ton
Minimum Fee - Inside City Limit $10.00
Minimum Fee - Outside City Limit, TDCJ and SHSU $15.00
White Goods/Large Furniture - Inside City Limit $66.72 per ton
White Goods/Large Furniture - Outside City Limit, TDCJ and SHSU $83.40 per ton
Yard waste and limbs - Inside City Limit smaller than 4" diameter Free with City Water Bill
Trees, stumps, limbs - Inside City Limit $66.72 DIAMETER GREATER 4"
Trees, stumps, limbs - Outside City Limit, TDCJ and SHSU $83.40 per ton
Tires, Small (i.e. car or pickup truck) - Inside City Limit $4.00 Per Tire
Tires, Small (i.e. car or pickup truck) -Outside City Limit, TDCJ and SHSU $5.00 Per Tire
Tires, Large (i.e. semi-truck) - Inside City Limit $18.00 Per Tire
Tires, Large (i.e. semi-truck) - Outside City Limit, TDCJ and SHSU $21.50 Per Tire
Small dead animal (i.e. dog, cat) - Inside City Limit $5.00 each
Small dead animal (i.e. dog, cat) - Outside City Limit, TDCJ and SHSU $6.25 each
Large dead animal (i.e. cow, horse) - Inside City Limit $66.72 per ton
Large dead animal (i.e. cow, horse) - Outside City Limit, TDCJ and SHSU $83.40 per ton
16
Exhibit D FY 21-22 Fee Schedule
Meter Accuracy Test $75 per meter or actual cost if cost of making test exceeds $75
Replacement of Water Meter, Lock, or Head $50 per occurrence
Tamper Fee (Water Meter)$75.00 per Occurrence
Negligent damage to meter or any associated to electronic device Replacement Cost
Customer request for meter on/off for repairs $20
Tamper Fee (Fire Hydrant)$150.00 per Occurrence
Portal Service $1 per Meter
Water Tapping Charge
Completed by City Crews
.75 inch water tap - short side $1,100
3/4" Water tap - long side $1,450
1 inch water tap - short side $1,200
1 inch water tap - long side $1,600
2 inch water tap (same side) - short side $2,300
2 inch water tap (road bore) - long side $3,000
ETJ - E series meter additional charge $300
TxDOT Tap Fee-At-Cost Estimate
Completed by Another Entity
.75 inch water meter set only $250
1 inch water meter set only $300
2 inch water meter set only $600
Meters Not Provided by City (Inspection Fee)$250
Sewer Tapping Charge
Location of Stub -
Location of an existing Water/Sewer stub. If the existing tap cannot be located,
or is unusable the customer will pay the cost for a new tap $400 - Non-refundable
Connection Fee $200
4 inch sewer tap - short side $1,000
4 inch sewer tap - long side $1,550
4 inch sewer tap manhole in street $1,600
Taps Made by Other Entity (Inspection Fee)$250
TxDOT Tap Fee-At-Cost Estimate
Fire Line Tapping Charge
Taps Made by Other Entity (Inspection Fee)$250
Customer request for fire line meter on/off for repairs $40
Service Fee (new and transferred service)$20
Service Fee (Restricted Access Fee)$20
Service Fee (sprinkler on or off)$20
Same Day Service Fee for Suspended Account $50.00
Requests for same day service for suspended account may be taken between
After Hours - after 5pm $75
Residential Security Deposit
Water $40
Wastewater $40
Solid Waste $40
Solid Waste Per Cart $50
Solid Waste Cart Replacement Fee $50
New Construction (Residential & Commercial 3/4" to 2" meter X number of meters)$100
New Construction (Commercial - 3" to 8" meter x number of meters $500
2:00 p.m. - 4:00 p.m. the day of suspension. Same day service fee is in addition to
$25.00 Account Suspension Fee. Same day service for suspended account is
available only the day of suspension
Taps involving excavation or boring in or under TxDOT Regulated streets
or highways .
Other Utility-Related Fees
Taps involving excavation or boring in or under TxDOT Regulated streets
or highways .
17
Exhibit D FY 21-22 Fee Schedule
Commercial Security Deposit 2 x the average estimated monthly utility service charge
Construction/Contractor Roll-offs (new accounts)$1,500
Construction/Contractor Roll-offs Permit Fee (Commerical Hauler)$100/year/roll-off
Solid Waste Disposal Deposit $500
Fire Hydrant Meter Deposit $500
Penalty for Late Payment 10% of amount of utility service charge
Account Suspension Fee $25
Returned Check Fee $35
Surcharges for Industrial Wastewater Discharges $1.61 per thousand gallons of wastewater
Meter Box Lid Replacement Small -$10 Large -$15
Meter Box Replacement
Small box / lid combo $25
Large box /lid combo $40
Use of City Equipment At Cost/ Current FEMA Rate
Use of City Labor Actual Rate
Tanker Truck Fill (up to 8,000 gallons)$75.00
Tanker Truck Fill over 8,000 gallons $ 75 + $6.59 per thousand gallons over 8,000
18
TNT-856 07-20/7
2021 Tax Rate Calculation Worksheet
No-New-Revenue Tax Rate
Huntsville City
1212 Avenue M
www.huntsvilletx.gov
The NNR tax rate enables the public to evaluate the relationship between taxes for the prior year and for the current year based on a tax rate that would produce the same amount of taxes (no new taxes) if applied to the same properties that are taxed in both years. When appraisal values increase, the NNR tax rate should decrease.
The NNR tax rate for a county is the sum of the NNR tax rates calculated for each type of tax the county levies.
While uncommon, it is possible for a taxing unit to provide an exemption for only maintenance and operations taxes. In this case, the taxing unit will need to calculate the NNR tax rate separately for the maintenance and operations tax and the debt tax, then add the two components together.
1.2020 total taxable value. Enter the amount of 2020 taxable value on the 2020tax roll today. Include any adjustments since last year's certification; excludeTax Code Section 25.25(d) one-fourth and one-third over-appraisal correctionsfrom these adjustments. Exclude any property value subject to an appeal underChapter 42 as of July 25 (will add undisputed value in Line 6). This totalincludes the taxable value of homesteads with tax ceilings (will deduct in Line 2)and the captured value for tax increment financing (will deduct taxes in Line
17).1
2.2020 tax ceilings. Counties, Cities and Junior College Districts. Enter 2020total taxable value of homesteads with tax ceilings. These include thehomesteads of homeowners age 65 or older or disabled. Other units enter "O" Ifyour taxing units adopted the tax ceiling provision in 2020 or prior year for
homeowners age 65 or older or disabled, use this step.2
3.Preliminary 2020 adjusted taxable value. Subtract line 2 from line 1.
4.2020 total adopted tax rate.
5.2020 taxable value lost because court appeals of ARB decisions reduced2020 appraised value.
A.Original 2020 ARB values:$49,030,700
B.2020 values resulting from final courtdecisions:-$46,860,005
C.2020 value loss. Subtract B from A.3
6.2020 taxable value subject to an appeal under Chapter 42, as of July 25.
A.2020 ARB certified value:$233,918,325
B.2020 dispuated value:-$224,465,222
C.2020 undisputed value. Subtract B from A.4
7.2020 Chapter 42 related adjusted values. Add line 5 and line 6.
8.2020 taxable value, adjusted for actual and potential court-orderedadjustments.Add line 3 and line 7.
1 Tex. Tax Code§ 26.012(14)
2 Tex. Tax Code§ 26.012(14)
3 Tex. Tax Code§ 26.012(13)
4 Tex. Tax Code§ 26.012(13)
$2,335,399,923
$339,854,625
$1,995,545,298
$0.306200/$100
$2,170,695
$9,453,103
$11,623,798
$2,007,169;096
Exhibit E
2021 Tax Rate Calculation Worksheet
Huntsville City
No-New-Revenue Tax Rate (continued)
9. 2020 taxable value of property in territory the taxing unit deannexed after
January 1, 2020. Enter the 2020 value of property in deannexed territory. 5
10. 2020 taxable value lost because property first qualified for an exemption
in 2021. If the taxing unit increased an original exemption, use the difference
between the original exempted amount and the increased exempted amount.
Do not include value lost due to freeport, goods-in-transit, temporary disaster
exemptions. Note that lowering the amount or percentage of an existing
exemption in 2021 does not create a new exemption or reduce taxable value.
A. Absolute exemptions. Use ·2020 market value: · $1,076,460
B. Partial exemptions. 2021 exemption amount or
2021 percentage exemption times 2020 value: + $2,099,328
C. Value loss. Add A and B.6
11. 2020 taxable value lost because property first qualified for agricultural
appraisal (1-d or 1-d-1), timber appraisal, recreational/scenic appraisal or
public access airport special appraisal in 2021. Use only those properties
that first qualified in 2021; do not use properties that qualified in 2020.
A. 2020 market value: $0
B. 2021 productivity or special appraised value: -$0
C. Value loss. Subtract B from A. 7
12. Total adjustments for lost value. Add lines 9, 10C and 11C.
13. Adjusted 2020 taxable value. Subtract line 12 from line 8.
14. Adjusted 2020 total levy. Multiply line 4 by line 13 and divide by $100.
15. Taxes refunded for years preceding tax year 2020. Enter the amount of
taxes refunded by the taxing unit for tax years preceding tax year 2020. Types
of refunds include court decisions, Tax Code§ 25.25(b) and (c) corrections and
Tax Code§ 31.11 payment errors. Do not include refunds for tax year 2020.
This line applies only to tax years preceding tax year 2020.8
16. Taxes in tax increment financing (TIF) for tax year 2020. Enter the amount of
taxes paid into the tax increment fund for a reinvestment zone as agreed by the
taxing unit. If the unit has no 2021 captured appraised value in Line 180, enter
"0".9
17. Adjusted 2020 levy with refunds and TIF adjustment. Add lines 14 and 15,
subtract line 16.10
5 Tex. Tax Code § 26.012(15)
6 Tex. Tax Code § 26.012(15)
7 Tex. Tax Code § 26.012(15)
8 Tex. Tax Code § 26.012(13)
9 Tex. Tax Code § 26.03( c)
10 Tex. Tax Code§ 26.012(13)
$0
$3,175,788
$0
$3,175,788
$2,003,993,308
$6,136,227
$21,062
$154,468
$6,002,821
Exhibit E
2021 Tax Rate Calculation Worksheet
Huntsville City
No-New-Revenue Tax Rate (continued)
18. Total 2021 taxable value on the 2021 certified appraisal roll today. This
value includes only certified values or certified estimate of values and includes
the total taxable value of homesteads with tax ceilings (will deduct in line 20).
These homesteads includes homeowners age 65 or older or disabled.11
A. Certified values: $2,373,004,683
B. Counties: Include railroad rolling stock values
certified by the Comptroller's office: +$0
C. Pollution control and energy storage system
exemption: Deduct the value of property
exempted for the current tax year for the first time
as pollution control or energy storage system
property: -$0
D. Tax increment financing: Deduct the 2021
captured appraised value of property taxable by a
taxing unit in a tax increment financing zone for
which the 2021 taxes will be deposited into the tax
increment fund. Do not include any new property
value that will be included in line 23 below.12 -$56,960,177
E. Total 2021 value. Add A and B, then subtract C
and D.
19. Total value of properties under protest or not included on certified
appraisal roll.13
A. 2021 taxable value of properties under protest.
The chief appraiser certifies a list of properties still
under ARB protest. The list shows the appraisal
district's value and the taxpayer's claimed value, if
any or an estimate of the value if the taxpayer
wins. For each of the properties under protest, use
the lowest of these values. Enter the total value
under protest.14
B. 2021 value of properties not under protest or
included on certified appraisal roll. The chief
appraiser gives taxing units a list of those taxable
properties that the chief appraiser knows about
but are not included at appraisal roll certification.
These properties also are not on the list of
properties that are still under protest. On this list of
properties, the chief appraiser includes the market
value, appraised value and exemptions for the
preceding year and a reasonable estimate of the
market value, appraised value and exemptions for
the current year. Use the lower market, appraised
or taxable value (as appropriate). Enter the total
value of property not on the certified ro11.15
11 Tex. Tax Code§ 26.12, 26.04(c-2)
12 Tex. Tax Code§ 26.03(c)
13 Tex. Tax Code§ 26.01(c) and (d)
14 Tex. Tax Code§ 26.01(c)
15 Tex. Tax Code§ 26.01(d)
$141,872,830
+ $0
$2,316,044,506
Exhibit E
2021 Tax Rate Calculation Worksheet
Huntsville City
No-New-Revenue Tax Rate (concluded)
19. C. Total value under protest or not certified. Add
(cont.) A and B.
20. 2021 tax ceilings. Counties, cities and junior colleges enter 2021 total taxable
value of homesteads with tax ceilings. These include the homesteads of
homeowners age 65 or older or disabled. Other taxing units enter "0". If your
taxing units adopted the tax ceiling provision in 2020 or a prior year for
homeowners age 65 or older or disabled, use this step.16
21. 2021 total taxable value. Add lines 18E and 19C. Subtract line 20.11
22. Total 2021 taxable value of properties in territory annexed after January
1, 2020. Include both real and personal property. Enter the 2021 value of
property in territory annexed.18
23. Total 2021 taxable value of new improvements and new personal property
located in new improvements. New means the item was not on the appraisal
roll in 2020. An improvement is a building, structure, fixture or fence erected on
or affixed to land. New additions to existing improvements may be included if
the appraised value can be determined. New personal property in a new
improvement must have been brought into the taxing unit after January 1 , 2020
and be located in a new improvement. New improvements do include property
on which a tax abatement agreement has expired for 2021.19
24. Total adjustments to the 2021 taxable value. Add lines 22 and 23.
25. Adjusted 2021 taxable value. Subtract line 24 from line 21.
26. 2021 NNR tax rate. Divide line 17 by line 25 and multiply by $100.20
27. COUNTIES ONLY. Add together the NNR tax rates for each type of tax the
county levies. The total is the 2021 county NNR tax rate.21
16 Tex. Tax Code§ 26.012(6)(B)
17 Tex. Tax Code§ 26.012(6)
18 Tex. Tax Code§ 26.012(17)
19 Tex. Tax Code§ 26.012(17)
20 Tex. Tax Code§ 26.04(c)
21 Tex. Tax Code§ 26.04(d)
$141,872,830
$370,362,686
$2,087,554,650
$0
$70,279,810
$70,279,810
$2,017,274,840
$0.2975/$100
$/$100
Exhibit E
Voter-Approval Tax Rate
2021 Tax Rate Calculation Worksheet
Huntsville City
The voter-approval tax rate is the highest tax rate that a taxing unit may adopt without holding an
election to seek voter approval of the rate. The voter-approval tax rate is split into two separate rates:
1. Maintenance and Operations (M&O) Tax Rate: The M&O portion is the tax rate that is
needed to raise the same amount of taxes that the taxing unit levied in the prior year plus the
applicable percentage allowed by law. This rate accounts for such things as salaries, utilities and
day-to-day operations.
2. Debt Rate: The debt rate includes the debt service necessary to pay the taxing unit's debt
payments in the coming year. This rate accounts for principal and interest on bonds and other
debt secured by property tax revenue. · ·
The voter-approval tax rate for a county is the sum of the voter-approval tax rates calculated for each
type of tax the county levies. In most cases the voter-approval tax rate exceeds the no-new-revenue tax
rate, but occasionally decreases in a taxing unit's debt service will cause the NNR tax rate to be higher
than the voter-approval tax rate.
28. 2020 M&O tax rate. Enter the 2020 M&O tax rate. $0.2399/$100
29. 2020 taxable value, adjusted for actual and potential court-ordered
adjustments. Enter the amount in line 8 of the No-New-Revenue Tax Rate
Worksheet. $2,007,169,096
30. Total2020 M&O levy. Multiply line 28 by line 29 and divide by $100. $4,815,198
31. Adjusted 2020 levy for calculating NNR M&O taxes.
A. 2020 sales tax specifically to reduce property
taxes. For cities, counties and hospital districts,
enter the amount of additional sales tax collected
and spent on M&O expenses in 2020, if any.
Other taxing units, enter 0. Counties must exclude
any amount that was spent for economic
development grants from the amount of sales tax
spent. $3,501,700
B. M&O taxes refunded for years preceding tax
year 2020: Enter the amount of M&O taxes
refunded in the preceding year for taxes before
that year. Types of refunds include court
decisions, Tax Code Section 25.25(b) and (c)
corrections and Tax Code Section 31.11 payment
errors. Do not include refunds for tax year 2020.
This line applies only to tax years preceding tax
year2020. + $16,548
C. 2020 taxes in TIF.: Enter the amount of taxes
paid into the tax increment fund for a reinvestment
zone as agreed by the taxing unit. If the taxing
unit has no 2021 captured appraised value in Line
180, enter 0. -$154,468
Exhibit E
2021 Tax Rate Calculation Worksheet
Huntsville City
Voter-Approval Tax Rate (continued)
31. D. 2020 transferred function.: If discontinuing all of
(cont.) a department, function or activity and transferring
it to another taxing unit by written contract, enter
the amount spent by the taxing unit discontinuing
the function in the 12 months preceding the
month of this calculation. If the taxing unit did not
operate this function for this 12-month period, use
the amount spent in the last full fiscal year in
which the taxing unit operated the function. The
taxing unit discontinuing the function will subtract
this amount in E below. The taxing unit receiving
the function will add this amount in E below.
Other taxing units enter 0. +/-$0
E. 2020 M&O levy adjustments.: Add A and B,
then subtract C. For taxing unit with D, subtract if
discontinuing function and add if receiving
function. $3,363,780
F. Add line 30 to line 31E.
32. Adjusted 2021 taxable value.
Enter the amount in line 25 of the No-New-Revenue Tax Rate Worksheet.
33. 2021 NNR M&O rate. (unadjusted)
Divide line 31 by line 32 and multiply by $100.
34. Rate adjustment for state criminal justice mandate.23
A. 2021 state criminal justice mandate. Enter the
amount spent by a county in the previous 12
months providing for the maintenance and
operation cost of keeping inmates in county-paid
facilities after they have been sentenced. Do not
include any state reimbursement received by the
county for the same purpose.
B. 2020 criminal justice mandate. Enter the
amount spent by a county in the 12 months prior
to the previous 12 months providing for the
maintenance and operation cost of keeping
inmates in county-paid facilities after they have
been sentenced. Do not include any state
reimbursement received by the county for the
same purpose. Enter zero if this is the first time
the mandate applies.
C. Subtract B from A and divide by line 32 and
multiply by $100.
D. Enter the rate calculated in C. If not applicable,
enter 0.
22 [Reserved for expansion]
23 Tex. Tax Code § 26.044
$0
$0
$0/$100
$8,178,978
$2,017,27 4,840
$0.4054/$100
$0/$100
Exhibit E
2021 Tax Rate Calculation Worksheet
Huntsville City
Voter-Approval Tax Rate (continued)
35. Rate adjustment for indigent health care expenditures.24
A. 2021 indigent health care expenditures. Enter
the amount paid by a taxing unit providing for the
maintenance and operation cost of providing
indigent health care for the period beginning on
July 1, 2020 and ending on June 30, 2021, less
any state assistance received for the same
purpose.
B. 2020 indigent health care expenditures. Enter
the amount paid by a taxing unit providing for the
maintenance and operation cost of providing
indigent health care for the period beginning on
July 1, 2019 and ending on June 30, 2020, less
any state assistance received for the same
purpose.
C. Subtract B from A and divide by line 32 and
multiply by $100.
D. Enter the rate calculated in C. If not applicable,
enter 0.
36. Rate adjustment for county indigent defense compensation. 25
A. 2021 indigent defense compensation
expenditures. Enter the amount paid by a county
to provide appointed counsel for indigent
individuals for the period beginning on July 1,
2020 and ending on June 30, 2021, less any state
grants received by the county for the same
purpose.
B. 2020 indigent defense compensation
expenditures. Enter the amount paid by a county
to provide appointed counsel for indigent
individuals for the period beginning on July 1,
2019 and ending on June 30, 2020, less any state
grants received by the county for the same
purpose.
C. Subtract B from A and divide by line 32 and
multiply by $100.
D. Multiply B by 0.05 and divide by line 32 and
multiply by $100.
E. Enter the lessor of C and D. If not applicable,
enter 0.
24 Tex. Tax Code § 26.0442
25 Tex. Tax Code § 26.0442
$0
$0
$0/$100
$0
$0
$0/$100
$0/$100
$0/$100
$0/$100
Exhibit E
2021 Tax Rate Calculation Worksheet
Huntsville City
Voter-Approval Tax Rate {continued)
37. Rate adjustment for county hospital expenditures.26
A. 2021 eligible county hospital expenditures.
Enter the amount paid by the county or
municipality to maintain and operate an eligible
county hospital for the period beginning on July 1,
2020 and ending on June 30, 2021 $0
B. 2020 eligible county hospital expenditures.
Enter the amount paid by the county or
municipality to maintain and operate an eligible
county hospital for the period beginning on July 1,
2019 and ending on June 30, 2020. $0
C. Subtract B from A and divide by line 32 and
multiply by $100. $0/$100
D. Multiply B by 0.08 and divide by line 32 and
multiply by $100. $0/$100
E. Enter the lessor of C and D, if applicable. If not
applicable, enter 0.
38. Adjusted 2021 NNR M&O rate.
Add lines 33, 340, 350, 36E, and 37E.
39. 2021 voter-approval M&O rate. Enter the rate as calculated by the appropriate
scenario below.
Special Taxing Unit. If the taxing unit qualifies as
a special taxing unit, multiply line 38 by 1.08.
Other Taxing Unit. If the taxing unit does not
qualify as a special taxing unit, multiply Line 38 by
1.035
Taxing unit affected by disaster declaration. If
the taxing unit is located in an area declared as
disaster area, the governing body may direct the
person calculating the voter-approval rate to
calculate in the manner provided for a special
taxing unit. The taxing unit shall continue to
calculate the voter-approval rate in this manner
until the earlier of 1) the second year in which total
taxable value on the certified appraisal roll
exceeds the total taxable value of the tax year in
which the disaster occurred, and 2) the third tax
year after the tax year in which the disaster
occurred. If the taxing unit qualifies under this
scenario, multiply line 38 by 1.08. 27
26 Tex. Tax Code § 26.0443
27 Tex. Tax Code§ 26.04(c-l)
$0/$100
$0.4054/$100
$0.4196/$100
Exhibit E
2021 Tax Rate Calculation Worksheet
Huntsville City
Voter-Approval Tax Rate (concluded)
40. Total 2021 debt to be paid with property taxes and additional sales tax
revenue. Debt means the interest and principal that will be paid on debts
that:
(1) are paid by property taxes,
(2) are secured by property taxes,
(3) are scheduled for payment over a period longer than one year, and
(4) are not classified in the taxing unit's budget as M&O expenses.
A: Debt also includes contractual payments to other
taxing units that have incurred debts on behalf of
this taxing unit, if those debts meet the four
conditions above. Include only amounts that will be
paid from property tax revenue. Do not include
appraisal district budget payments.
Enter debt amount. $2,604,113
B: Subtract unencumbered fund amount used to
reduce total debt. -$203,000
C: Subtract certified amount spent from sales tax to
reduce debt (enter zero if none). -$0
D: Subtract amount paid from other resources. -$1 '162,550
E: Adjusted debt. Subtract B, C and D from A.
41. Certified 2020 excess debt collections. Enter the amount certified by the
collector. 28
42. Adjusted 2021 debt. Subtract line 41 from line 40E.
43. 2021 anticipated collection rate.
A. Enter the 2021 anticipated collection rate
certified by the collector. 29 100.0000%
B. Enter the 2020 actual collection rate. 101.7500%
C. Enter the 2019 actual collection rate. 98.8200%
D. Enter the 2018 actual collection rate. 99.3900%
E. If the anticipated collection rate in A is lower than
actual collection rates in B, C and D, enter the
lowest collection rate from B, C and D. If the
anticipated rate in A is higher than at least one of
the rates in the prior three years, enter the rate
from A. Note that the rate can be greater than
100%.30
44. 2021 debt adjusted for collections. Divide line 42 by line 43E.
45. 2021 total taxable value. Enter the amount on line 21 of the No-New-
Revenue Tax Rate Worksheet.
46. 2021 debt rate. Divide line 44 by line 45 and multiply by $100.
47. 2021 voter-approval tax rate. Add lines 39 and 46.
48. COUNTIES ONLY. Add together the voter-approval tax rates for each type of
tax the county levies. The total is the 2021 county voter-approval tax rate.
28 Tex. Tax Code§ 26.012(10) and 16.04(b)
29 Tex. Tax Code § 26.04(b)
30 Tex. Tax Code § 26.04(h),(h-1) and (h-2)
$1,238,563
$0
$1,238,563
100.0000%
$1,238,563
$2,087,554,650
$0.0593/$100
$0.4789/$100
$/$100
Exhibit E
2021 Tax Rate Calculation Worksheet
Huntsville City
NNR Tax Rate and Voter-Approval Tax Rate Adjustments for Additional Sales Tax to Reduce
Property Taxes
Cities, counties and hospital districts may levy a sales tax specifically to reduce property taxes. Local
voters by election must approve imposing or abolishing the additional sales tax. If approved, the taxing
unit must reduce its NNR and voter-approval tax rates to offset the expected sales tax revenue.
This section should only be completed by a county, city or hospital district that is required to adjust its
NNR tax rate and/or voter-approval tax rate because it adopted the additional sales tax.
49. Taxable Sales. For taxing units that adopted the sales tax in November 2020 or
May 2021, enter the Comptroller's estimate of taxable sales for the previous
four quarters.32 Estimates of taxable sales may be obtained through the
Comptroller's Allocation Historical Summary webpage. Taxing units that
adopted the sales tax before November 2020, skip this line.
50. Estimated sales tax revenue. Counties exclude any amount that is or will be
spent for economic development grants from the amount of estimated sales tax
revenue.33
Taxing units that adopted the sales tax in November 2020 or in May 2021.
Multiply the amount on Line 49 by the sales tax rate (.01, .005, or .0025, as
applicable) and multiply the result by .95.34
-OR-
Taxing units that adopted the sales tax before November 2020. Enter the
sales tax revenue for the previous four quarters. Do not multiply by .95.
51. 2021 total taxable value. Enter the amount from line 21 of the No-New-
Revenue Tax Rate Worksheet.
52. Sales tax adjustment rate. Divide line 50 by line 51 and multiply by $100.
53. 2021 NNR tax rate, unadjusted for sales tax. 35 Enter the rate from line 26 or
27, as applicable, on the No-New-Revenue Tax Rate Worksheet.
54. 2021 NNR tax rate, adjusted for sales tax.
Taxing units that adopted the sales tax In November 2020 or in May 2021.
Subtract line 52 from line 53. Skip to line 55 if you adopted the additional
sales tax before November 2020.
55. 2021 voter-approval tax rate, unadjusted for sales tax.36 Enter the rate from
line 4 7 or 48, as applicable, of the Voter-Approval Tax Rate Worksheet.
56. 2021 voter-approval tax rate, adjusted for sales tax. Subtract line 52 from
line 55.
31 [Reserved for expansion]
32 Tex. Tax Code§ 26.041(d)
33 Tex. Tax Code§ 26.041(i)
34 Tex. Tax Code§ 26.041(d)
35 Tex. Tax Code§ 26.04(c)
36 Tex. Tax Code § 26.04( c)
$0
$3,501,700
$2,087,554,650
$0.1677/$100
$0.2975/$100
$0.2975/$100
$0.4789/$100
$0.31121$100
Exhibit E
2021 Tax Rate Calculation Worksheet
Huntsville City
Voter-Approval Rate Adjustment for Pollution Control
A taxing unit may raise its rate for M&O funds used to pay for a facility, device or method for the
control of air, water or land pollution. This includes any land, structure, building, installation,
excavation, machinery, equipment or device that is used, constructed, acquired or installed wholly or
partly to meet or exceed pollution control requirements. The taxing unit's expenses are those necessary
to meet the requirements of a permit issued by the Texas Commission on Environmental Quality
(TCEQ). The taxing unit must provide the tax assessor with a copy of the TCEQ letter of determination
that states the portion of the cost of the installation for pollution control.
This section should only be completed by a taxing unit that uses M&O funds to pay for a facility,
device or method for the control of air, water or land pollution.
57. Certified expenses from the Texas Commission on Envirbnmental Quality
(TCEQ). Enter the amount certified in the determination letter from TCEQ.37
The taxing unit shall provide its tax assessor-collector with a copy of the letter.38
58. 2021 total taxable value. Enter the amount from line 21 of the No-New-
Revenue Tax Rate Worksheet.
59. Additional rate for pollution control. Divide line 57 by line 58 and multiply by
100.
60. 2021 voter-approval tax rate, adjusted for pollution control. Add line 59 to
one of the following lines (as applicable): line 47, line 48 (counties) or line 56
(units with the additional sales tax).
37 Tex. Tax Code§ 26.045(d)
38 Tex. Tax Code § 26.045(i)
$0
$2,087,554,650
$0/$100
$0.3112/$100
Exhibit E
2021 Tax Rate Calculation Worksheet
Huntsville City
Voter-Approval Tax Rate Adjustment for Unused Increment Rate
The unused increment rate is the rate equal to the difference between the adopted tax rate and voter-
approval tax rate before the unused increment rate for the prior three years. 39 In a year where a taxing
unit adopts a rate by applying any portion of the unused increment rate, the unused increment rate for
that year would be zero.
For each tax year before 2021, the difference between the adopted tax rate and voter-approval rate is
considered zero, therefore the unused increment rate for 2021 is zero. 40
This section should only be completed by a taxing unit that does not meet the defmition of a special
taxing unit. 41
61. 2020 unused increment rate. Subtract the 2020 actual tax rate and the 2020
unused increment rate from the 2020 voter-approval tax rate. If the number is
less than zero, enter zero. If the year is prior to 2021, enter zero.
62. 2019 unused increment rate. Subtract the 2019 actual tax rate and the 2019
unused increment rate from the 2019 voter-approval tax rate. If the number is
less than zero, enter zero. If the year is prior to 2021, enter zero.
63. 2018 unused increment rate. Subtract the 2018 actual tax rate and the 2018
unused increment rate from the 2018 voter-approval tax rate. If the number is
less than zero, enter zero. If the year is prior to 2021, enter zero.
64. 2021 unused increment rate. Add lines 61, 62, and 63.
65. 2021 voter-approval tax rate, adjusted for unused increment rate. Add line
64 to one of the following lines (as applicable): line 47, line 48 (counties), line 56
(taxing units with the additional sales tax) or line 60 (taxing units with pollution
control).
39 Tex. Tax Code § 26.013(a)
40 Tex. Tax Code§ 26.013(c)
41 Tex. Tax Code§ 26.063(a)(1)
$0.028/$100
$0/$100
$0/$100
$0.028/$100
$0.3392/$100
Exhibit E
Total Tax Rate
Indicate the applicable total tax rates as calculated above.
No-New-Revenue tax rate. As applicable, enter the 2021 NNR tax rate from: line 26,
line 27 (counties), or line 54 (adjusted for sales tax).
Voter-approval tax rate. As applicable, enter the 2021 voter-approval tax rate from: line
47, line 48 (counties), line 56 (adjusted for sales tax), line 60 (adjusted for pollution
control), or line 65 (adjusted for unused increment).
De minimis rate. If applicable, enter the de minimis rate from line 70.
$0.2975/$100
$0.3392/$100
/$100
Exhibit E
Taxing Unit Representative Name and Signature
Enter the name of the person preparing the tax rate as authorized by the governing body of the taxing
unit. By signing below, you certify that you are the designated officer or employee of the taxing unit
and have calculated the tax rates in accordance with requirements in Tax Code. 44
Print Here
5'1ACtV m. PorEt'fr
Printed Name of Taxing Unit Representative
Sign H~ IJ.J-1 ~1!1_, ~
Taxing Unit Repr sentatlve
Date
7-U-zozl
44 Tex. Tax Code§ 26.04(c)
Exhibit E
Entity Name: Huntsville City
2021 Notice of No-New-Revenue Tax Rate
Worksheet for Calculation of Tax Increase/Decrease
1.2020 taxable value, adjusted for actual and potential court-ordered adjustments.
Enter line 8 of the No-New-Revenue Tax Rate Worksheet.
2.2020 total tax rate.
Enter line 4 of the No-New-Revenue Tax Rate Worksheet.
3.Taxes refunded for years preceding tax year 2020.
Enter line 15 of the No-New-Revenue Tax Rate Worksheet.
4.Last year's levy.
Multiply Line 1 times Line 2 and divide by 100.
To the result, add Line 3.
5.2021 total taxable value. Enter Line 21 of
the No-New-Revenue Tax Rate Worksheet.
6.2021 no-new tax rate.
Enter line 26 of the No-New-Revenue Tax Rate Worksheet or Line 54
of the Additional Sales Tax Rate Worksheet.
7.2021 taxes if a tax rate equal to the no-new-revenue tax rate is adopted.
Multiply Line 5 times Line 6 and divide by 100.
8.Last year's total levy.
Sum of line 4 for all funds.
9.2021 total taxes if a tax rate equal to the no-new-revenue tax rate is adopted.
Sum of line 7 for all funds.
10.Tax Increase (Decrease).
Subtract Line 8 from Line 9.
Date: 07/28/2021
$2,007,169,096
0.306200
$21,062
$6,167,014
$2,087,554,650
0.297570
$6,211,936
$6,167,014
$6,211,936
$44,922
Exhibit E
Huntsville City
Tax Rate Recap for 2021 Tax Rates
Deaeriptlon of Rate
Last Year's Tax Rate 0.306200 $6,392,092
No-New-Revenue Tax Rate 0.297570 $6,211,936
Notice & Hearing Limit 0.297500 $6,210,475
Voter-Approval Tax Rate 0.339225 $7,081,507
Proposed Tax Rate 0.000000 $0
N N o-ew-R evenue T R t I ax ae ncrease m c t en sper $100
0.00 0.297570 6,211,936
0.50 0.302570 6,316,314
1.00 0.307570 6,420,692
!.50 0.312570 6,525,070
2.00 0.317570 6,629,447
2.50 0.322570 6,733,825
3.00 0.327570 6,838,203
3.50 0.332570 6,942,580
4.00 0.337570 7,046,958
4.50 0.342570 7,151,336
5.00 0.347570 7,255,714
5.50 0.352570 7,360,091
6.00 0.357570 7,464,469
6.50 0.362570 7,568,847
7.00 0.367570 7,673,225
7.50 0.372570 7,777,602
8.00 0.377570 7,881,980
8.50 0.382570 7,986,358
9.00 0.387570 8,090,736
9.50 0.392570 8,195,113
10.00 0.397570 8,299,491
10.50 0.402570 8,403,869
11.00 0.407570 8,508,246
11.50 0.412570 8,612,624
12.00 0.417570 8,717,002
12.50 0.422570 8,821,380
13.00 0.427570 8,925,757
13.50 0.432570 9,030,135
14.00 0.437570 9,134,513
14.50 0.442570 9,238,891
$281,733
$101,577
$100,115
$971,148
$-6,110,360
101,577
205,954
310,332
414,710
519,088
623,465
727,843
832,221
936,599
1,040,976
1,145,354
1,249,732
1,354,109
1,458,487
1,562,865
1,667,243
1,771,620
1,875,998
1,980,376
2,084,754
2,189,131
2,293,509
2,397,887
2,502,265
2,606,642
2,711,020
2,815,398
2,919,775
3,024,153
3,128,531
~~Levy Co~~~l:tq~· •-.tg ... lettof '~.6,21l•9J6
•.
$180,156
$0
$-1,461
$869,571
$-6,211,936
0
104,378
208,755
313,133
417,511
521,889
626,266
730,644
835,022
939,400
1,043,777
1,148,155
1,252,533
1,356,911
1,461,288
1,565,666
1,670,044
1,774,421
1,878,799
1,983,177
2,087,555
2,191,932
2,296,310
2,400,688
2,505,066
2,609,443
2,713,821
2,818,199
2,922,577
3,026,954
Exhibit E
Tax Levy: This is calculated by taking the adjusted taxable value (line 21 ofNo-New-Revenue Tax Rate Worksheet),
multiplying by the appropriate rate, such as the No-New-Revenue Tax Rate and dividing by 100.
For School Districts: This is calculated by taking the adjusted taxable value (line 34 of the Voter-
Approval Tax Rate Worksheet), multiplying by the appropriate rate, dividing by 100 and then adding this
year's frozen tax levy on homesteads of the elderly.
Additional Levy This is calculated by taking Last Year's taxable value (line 3 ofNo-New-Revenue Tax Rate Worksheet),
Last Year: multiplying by Last Year's tax rate (line 4 of No-New-Revenue Tax Rate Worksheet) and dividing by 100.
For School Districts: This is calculated by taking Last Year's taxable value, subtracting Last Year's
taxable value for the elderly, multiplying by Last Year's tax rate, dividing by 100 and adding Last Year's . . . . .
tax ceiling.
Additional Levy This is calculated by taking the current adjusted taxable value, multiplying by the No-New-Revenue Tax
This Year: Rate and dividing by 100.
COUNTIES
ONLY:
For School Districts: This is calculated by taking the adjusted taxable value (line 34 of the Voter-
Approval Tax Rate Worksheet), multiplying by the No-New-Revenue Tax Rate, dividing by 100 and
adding This Year's tax ceiling.
All figures in this worksheet include ALL County Funds. Tax Levy amounts are the sum of each Fund's
Taxable Value X each Fund's Tax Rate.
Exhibit E
TNT-212 08-20/18
Notice About 2021 Tax Rates
Property Tax Rates in Huntsville City. This notice concerns the 2021 property tax rates for Huntsville City. This notice
provides information about two tax rates used in adopting the current tax year's tax rate. The no-new-revenue tax rate would
Impose the same amount of taxes as last year if you compare properties taxed in both years. In most cases, the voter-
approval tax rate is the highest tax rate a taxing unit can adopt without holding an election. In each case, these rates are
calculated by dividing the total amount of taxes by the current taxable value with adjustments as required by state law. The
rates are given per $100 of property value.
This year's no-new-revenue tax rate: $0.297570/$100
This year's voter-approval tax rate: $0.3392/$100
To see the full calculations, please visit www.walkercad.org for a copy of the Tax Rate Calculation Worksheet.
Unencumbered Fund Balances:
The following estimated balances will be left in the taxing unit's accounts at the end of the fiscal year. These balances are not encumbered by corresponding debt
obligation.
TypeofFund
General Fund
Debt Service Fund
TIRZ Special Revenue Fund
Current Year Debt Service:
Balance
$11,635,631
$1,496,016
$41,052
The following amounts are for long-term debts that are secured by property taxes. These amounts will be paid from upcoming property tax revenues (or additional
sales tax revenues, if applicable).
Description of Debt
Capital Projects
Total required for 2021 debt service
Principal or
Contract
Payment to be
Paid from
Property Taxes
$1,370,221
Amount (if any) paid from funds listed in unencumbered funds
Amount (if any) paid from other resources
Excess collections last year
= Total to be paid from taxes in 2021
Interest to be
Paid from
Property Taxes
$1,233,892
Other Amounts
to be Paid
$0
+ Amount added in anticipation that the taxing unit will collect only 100.000000% of its taxes in
2021
Total Debt Levy
This notice contains a summary of the no-new-revenue and voter-approval calculations as certified by
Name of person preparing this notice: Stacey M Poteete
Position: Chief ARP-raiser
Date prepared: July 28, 2021
Total Payment
$2,604,113
$2,604,113
$203,000
$1,162,550
$0
$1,238,563
$0
$1,238,563
Exhibit E
Agenda Item # 4b Page 1
Item/Subject: Consider approval of Ordinance 2021-28 adopting the Tax Rate and levying taxes for
the City of Huntsville for the Fiscal Year 2021-2022. Record/rollcall vote required
Initiating Department/Presenter: Finance
Presenter: Steve Ritter – Finance Director
Recommended Motion: Move to adopt Ordinance 2021-28 adopting the Tax Rate and levying taxes
for the City of Huntsville for the Fiscal Year 2021-2022. This tax rate is effectively a 3.36% increase
in the tax rate. (The last sentence in the motion is required under Sec. 26.08 of the Texas Tax Code)
Record/rollcall vote required
Strategic Initiative: Goal #6 - Finance - Provide a sustainable, efficient and fiscally sound government
through conservative fiscal practices and resource management.
Discussion: In the City Manager’s Recommended Budget a tax rate of $0.3075 per $100 valuation was
used. The City provided notices concerning a proposed rate of $0.3391 as a maximum rate that could
be adopted and a public hearing on the tax rate in compliance with State statutes. A public hearing was
held earlier this evening at this City Council meeting.
Previous Council Action: None
Financial Implications:
☒There is no financial impact associated with this item. This agenda item has no financial impact but
is related to the agenda item adopting the FY 21-22 Budget where $5,750,000 of Property Tax
Revenue was budgeted for in General Fund and $1,441,600 of Property Tax Revenue was budgeted
for in Debt Service Fund.
Approvals: ☐City Attorney ☒Director of Finance ☐City Manager
Associated Information:
• Ordinance 2021-28 - page 2
9/21/2021
Agenda Item: 4b
CITY COUNCIL AGENDA
Agenda Item # 4b Page 2
ORDINANCE NO. 2021-28
AN ORDINANCE ADOPTING THE TAX RATE AND LEVYING TAXES FOR THE CITY OF HUNTSVILLE FOR THE 2021-2022 FISCAL YEAR UPON ALL TAXABLE PROPERTY LOCATED WITHIN AND SUBJECT TO TAXATION IN THE CITY; AND PROVIDING FOR THE EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, THAT: SECTION 1: There is levied and assessed and shall be collected for the 2021-2022 fiscal year ending September 30, 2022, an ad valorem tax of NO AND 30.75/100 ($0.3075) DOLLARS for each ONE HUNDRED ($100.00) DOLLARS of assessed value of property located within the city limits of Huntsville, Texas on January 1, 2021, made taxable by law, which when collected, shall be apportioned among funds and departments of the city government of the City of Huntsville for these purposes:
General Fund Operations $0.2482 Debt Service for Payment of General Obligations Indebtedness $0.0593 $0.3075
SECTION 2: All property upon which tax is levied shall be assessed on the basis of 100 percent of its appraised value [Property Tax Code § 26.02].
SECTION 3: This ordinance shall take effect from and after its passage by City Council.
PASSED AND APPROVED on this 21st day of September 2021.
THE CITY OF HUNTSVILLE, TEXAS
Andy Brauninger, Mayor ATTEST: Kristy Doll, City Secretary APPROVED AS TO FORM: Leonard Schneider, City Attorney
Agenda Item # 4c Page 1
Item/Subject: Consider ratifying the increased property tax revenues of $504,750 reflected in the
Fiscal Year 2021-2022 Budget as adopted.
Initiating Department/Presenter: Finance
Presenter: Steve Ritter – Finance Director
Recommended Motion: Move to ratify the increased property tax revenues of $504,750 reflected in
the Fiscal Year 2021-2022 Budget as adopted.
Strategic Initiative: Goal #6 - Finance - Provide a sustainable, efficient and fiscally sound government
through conservative fiscal practices and resource management.
Discussion: Section 102.007(c) of the Texas Local Government Code requires that the governing body,
in a separate vote, ratify the property tax revenue increase reflected in the adopted budget. The
requirement of the vote in this subsection is in addition to and separate from the vote to adopt the
budget or a vote to set the tax rate. The additional property tax revenue amount presumes a tax rate
set at $0.3075/$100 of assessed valuation.
Previous Council Action: None
Financial Implications:
☒There is no financial impact associated with this item.
Approvals: ☐City Attorney ☒Director of Finance ☒City Manager
9/21/2021
Agenda Item: 4c
CITY COUNCIL AGENDA
Agenda Item # 5a
Item/Subject: First Reading. Consideration and discussion of Ordinance No. 2021-29 to deny Entergy
Texas Inc. application in total to amend its Distribution Cost Recovery Factor ("DCRF”) filed on August
30, 2021.
Initiating Department/Presenter: City Attorney
Presenter: Leonard Schneider, City Attorney
Recommended Motion: No action necessary as this is a first reading with no immediate time
constraint, however, if the Council wishes to waive the two-reading requirement, the recommended
motion is “Move to waive the two-reading requirement and move to adopt Ordinance 2021-29 to deny
Entergy Texas Inc. application in total, to amend its Distribution Cost Recovery Factor ("DCRF") filed on
August 30, 2021.”
Strategic Initiative: Goal #4 - Infrastructure - Ensure the quality of the City utilities, transportation and
physical structures so that the City’s core services can be provided in an effective and efficient
manner.
Discussion: On or about August 31, 2021, Entergy Texas Inc. ("Entergy" or "Company") filed an
application to amend its Distribution Cost Recovery Factor ("DCRF") with each of the Cities in its
service area and concurrently with the Public Utility Commission of Texas ("Commission"). Cities have
60 days to pass a Rate Ordinance accepting, modifying, or rejecting a DCRF Application. Accordingly,
Cities' deadline to pass a Rate Ordinance is October 30, 2021.
The purpose of a DCRF tariff is to allow a utility to recover increased distribution investment expenses
it has incurred since its last base rate case. DCRF tariffs can be amended thereafter as the Company
continues making distribution investment between rate cases. This will be the fourth DCRF
amendment since the Company's last base rate case.
Cities have previously contested the DCRF filings and have found numerous issues and successfully
argue to the PUC Commission to disallow 4.1 million from requested revenue by Entergy. Because of
the limited timeline, the Lawton firm recommends that the Cities deny Entergy's application in total
by October 30, 2021. Attached is a proposed ordinance for the City to consider.
Previous Council Action: The is a first reading. Due to the deadline of October 30, 2021, the Council
has ample time to have a second reading.
Financial Implications: ☒There is no financial impact associated with this item.
Approvals: ☒City Attorney ☐Director of Finance ☒City Manager
9/21/2021
Agenda Item: 5a
CITY COUNCIL AGENDA
Agenda Item # 5a
Associated Information:
• Ordinance 2021-29
1
ORDINANCE NO. 2021 - 29
AN ORDINANCE BY THE CITY OF HUNTSVILLE, TEXAS (“CITY”) DENYING THE DISTRIBUTION COST RECOVERY FACTOR RATE INCREASE REQUEST OF ENTERGY TEXAS, INC. FILED ON OR ABOUT AUGUST 31,
2021; SETTING JUST AND REASONABLE RATES FOR ENTERGY TEXAS, INC. FOR SERVICE WITHIN THE MUNICIPAL LIMITS; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS
WHEREAS, on or about August 31, 2021, Entergy Texas, Inc. (“Entergy”) filed an
Application to Amend its Distribution Cost Recovery Factor (“DCRF”) with the City to increase electric rates by amending its DCRF rider pursuant to Public Utility Regulatory Act (“PURA”) Section 36.210;
WHEREAS, City has exclusive original jurisdiction over the rates, operations and
services of an electric utility within its municipal limits pursuant to PURA Section
33.001(a);
WHEREAS, the jurisdictional deadline for the City to act in this rate matter is October 30, 2021;
WHEREAS, Entergy’s existing DCRF rider is set to collect approximately $26.3
million per year;
WHEREAS, Entergy’s proposed amended Distribution Cost Recovery Factor rider would increase customer rates in the Entergy Service Area by approximately $13.9 million per year, for a total of $40.2 million per year;
WHEREAS, the City retained the Lawton Law Firm, P.C. to review the Company’s
rate request and make necessary rate recommendations to the City; and
WHEREAS, the Lawton Law Firm has recommended that the City deny the
Company’s request to amend its Distribution Cost Recovery Factor.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, THAT:
Section 1. That the statement and findings set out in the preamble to this
ordinance are hereby in all things approved and adopted.
Section 2. The City of Huntsville hereby denies Entergy’s request to amend its Distribution Cost Recovery Factor in total.
2
Section 3. The meeting at which this ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government
Code Chapter 551.
Section 4. This ordinance shall become effective from and after its passage.
PASSED AND APPROVED this _________ day of __________________, 2021.
_____________________________
ATTEST:
_______________________________
Agenda Item #5b
Item/Subject: Second Reading: Consider a request from Huntsville Memorial Hospital for American
Rescue Plan Act (ARP) funds to provide additional nursing staff in response to COVID-19.
Initiating Department/Presenter: City Manager
Presenter: Aron Kulhavy, City Manager
Recommended Motion: Move to authorize the City Manager to enter into an agreement with
Huntsville Memorial Hospital to provide additional nursing staff in response to COVID-19 using
American Rescue Plan Act (ARP) funds.
Strategic Initiative: Goal #7 - Public Safety - Provide safety and security for all citizens.
Discussion: In response to the COVID-19 pandemic, Congress passed the American Rescue Plan Act
(ARPA) to provide $350 billion for eligible state and local governments. The City has received the first
half of the monies made available under the ARPA. The City is set to receive about $10.4 million in
total, with half currently available and the second half being made available next year. Under the
guidance of the treasury, the City may use the funds to support urgent COVID-19 response efforts to
continue to decrease the spread of the virus and bring the pandemic under control.
Huntsville Memorial Hospital (HMH) has reached out to the City and Walker County to see if it would
be possible for the entities to assist HMH with funding the necessary nurses needed during the surge
of COVID-19 patients being treated in the hospital. As of September 1, 2021, HMH has 46 COVID-19
patients in the hospital and the rate of increase has been growing considerably. As HMH continues to
plan and prepare for the weeks and more likely months ahead, they are in great need of additional
nursing staff in order to continue to medically care for the people of Walker County.
HMH has requested assistance to meet the need of eight RNs to staff a secondary COVID-19 ICU space
that has been designated in the Cath Lab recovery area. Since the nurse agencies are charging them
$145/hour, the projected costs for these nurses creates a deficit or loss of about $8,000 per day in the
Intensive Care Unit environment.
HMH is asking for City and County assistance through the ARP to fund the deficit for 13 weeks. The
contracts with these agencies are at a 13-week minimum. Therefore, at $8,000 per day for 13 weeks,
HMH is requesting $728,000. This amount is to be split evenly between the City and Walker County,
with each entity's portion being $364,000. HMH would be required to provide all the necessary
documentation and accounting that the funds were spent in accordance with the ARP guidelines.
The County has not yet acted on this request but has indicated they will do so soon. The Council, if it
so chooses, may place a condition on the request that the County also approve the request for funding
before the City executes any agreement.
9/21/2021
Agenda Item: 5b
CITY COUNCIL AGENDA
Agenda Item #5b
As the amount is over $300,000, there is a two-reading requirement for this request. Funds have not
been budgeted yet for the spending of the ARP monies. A budget amendment is on the agenda after
this item for consideration.
Previous Council Action: The Council entered into an agreement with Walker County Hospital District
last year for COVID testing in the amount of $1 million using Coronavirus Relief Funds. No action has
been taken by the Council regarding the American Rescue Plan funding and this request. The Council
held a first reading on the request at the September 7th Council meeting.
Financial Implications: ☒ Item is not budgeted: A Budget Amendment in the amount of $364,000 is needed with monies
available from the City’s American Rescue Plan fund allocation.
Approvals: ☐City Attorney ☐Director of Finance ☒City Manager
Associated Information:
INTERLOCAL COOPERATION AGREEMENT FOR PAYMENT FOR COSTS ASSOCIATED WITH 2019 NOVEL CORONAVIRUS (COVID-19) TESTING
This Interlocal Cooperation Agreement is entered into, effective on the date when the last Party
executes the agreement, by and between the City of Huntsville, Texas, (hereinafter, "City"), and
the Walker City Hospital District, (hereinafter, "District").
WITNESSETH:
WHEREAS, Chapter 791 of the Texas Government Code allows local government entities to make
the most efficient use of their powers by enabling them to contract with other governmental entities
for the provision of services to the public; and
WHEREAS, the City and the District each possesses the power and authority to engage in activities
that promote health and safety, and to provide services to further those ends; and
WHEREAS, the City and the District agree that the COVID-19 virus is a health hazard and
threat to the health and safety of our community and that expanded testing at no cost to those
being tested would provide health benefits; and
WHEREAS, the parties agree that their respective contribution of funding and/or in-kind labor
and service to the project allows the burden of the cost for the improvements to be lessened on
each entity;
NOW, THEREFORE, the City and the District hereby agree as follows:
1. City will provide funding for COVID-19 virus testing to the District.
2. The cost for each test shall be $250 individually, or One Million Dollars ($1,000,000.00)
cumulative.
3. The project shall terminate on December 1, 2020, or when the $1,000,000 has been expended,
whichever occurs first. 4. City is contributing only monetarily to the project. No in-kind services are expected or
required of the City.
5. District or its designee shall arrange for all staffing, structure, equipment, and materials
necessary to perform the testing.
6. District or its designee shall arrange for advertising costs and for establishing a procedure to schedule tests.
7. The District shall invoice the City weekly for all costs for the preceding period. Invoices shall
include the number of tests for persons who live in the City limits.
8. The City shall process the invoices from the District in a timely manner.
9. No Party to this Agreement will be responsible for the acts of an employee of another Party except as may be decreed against that Party by a judgment of a court of competent jurisdiction.
It is expressly understood and agreed that by executing this Agreement no Party waives, nor
shall be deemed to have waived, any immunity or defense otherwise available to it under the
law. Each Party to this Agreement waives all claims against every other Party to this
Agreement for compensation for any loss, damage, personal injury, or death, occurring as a consequence of the performance of this Agreement, except for acts in violation of law.
10. If any one or more of the provisions of this Agreement is held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provision and the Agreement will be construed without the invalid, illegal or
unenforceable provision.
11. District and City will make payments under this agreement from current revenues. 12. Any notice given hereunder by one party to the other party shall be in writing and may be effected by personal delivery, by registered or certified mail, return receipt requested, when mailed to the proper party, in care of the official signing this Agreement or by fax transmission as agreed to by the Parties and as evidenced by a confirming return fax transmission.
If to Walker City Hospital District: Walker County Hospital District 1300 11th, Suite 515
Huntsville, Texas 77340
Phone: (936) 295-0038 If to City: Aron Kulhavy, City Manager City of Huntsville
1212 Ave M Huntsville, Texas 77340 Phone: (936) 291-5401 Fax: (936) 291-5409
13. This is the complete and entire Agreement between the Parties with respect to the matters herein and supersedes all prior negotiations, agreements, representations, and understandings, if any. This Agreement may not be modified, discharged, or changed in any respect whatsoever except by a further agreement in writing duly executed by the parties hereto. No official,
representative, agent, or employee of the City of Huntsville, has any authority to modify this Agreement, except pursuant to such express authority as may be granted by the City Council. No official, representative, agent, or employee of the District has any authority to modify this Agreement, except pursuant to such express authority as may be granted by the District.
14. The Parties agree to execute such other and further instruments and documents as are or may
become necessary or convenient to carry out the purposes of this Agreement. 15. This Agreement shall be construed under the laws of the State of Texas. Any suits relating to this Agreement will be filed in a district court of Walker County, Texas. 16. Nothing in this Agreement, express or implied, is intended to confer upon any person, other
than the Parties hereto, any benefits, rights, or remedies under or by reason of this Agreement. 17. This Agreement may be executed simultaneously in one or more counterparts, each of which shall be deemed an original and all of which together constitute one and the same instrument. 18. The initial term of this agreement shall begin on the date when executed by the last party and shall continue until the project is completed, unless sooner terminated by either Party as
provided herein. Either Party may terminate this agreement by giving the other Party written
notice of its intent to terminate at least thirty (30) days prior to the effective date of the termination. The termination of the contract shall not prevent nor eliminate either party’s
responsibility to pay any outstanding balances due for expenses incurred under the contract.
Approved on the date or dates indicated.
WALKER COUNTY HOSPITAL DISTRICT _______________________________
ATTEST: _______________________________
Secretary APPROVED AS TO FORM:
_______________________________ Attorney Executed on this the ____ day of _______________ of 2020.
CITY OF HUNTSVILLE _______________________________
Aron Kulhavy, City Manager
ATTEST:
_______________________________ Brenda Poe, City Secretary APPROVED AS TO FORM:
_______________________________ Leonard Schneider, Attorney Executed on this the ____ day of _______________ of 2020.
Agenda Item # 5c Page 1
Item/Subject: Consider adoption of Ordinance 2021-30 to amend the budget for FY 20-21 and/or CIP
Project budgets.
Initiating Department/Presenter: Finance
Presenter: Steve Ritter
Recommended Motion: Move to adopt Ordinance 2021-30 to amend the budget for FY 20-21 and/or
CIP Project budgets.
Strategic Initiative: Goal #6 - Finance - Provide a sustainable, efficient and fiscally sound government
through conservative fiscal practices and resource management.
Discussion: Detailed explanation for the Budget Amendment is provided in the attachment, Exhibit A,
to the Ordinance. The Budget Amendments were presented to the Finance Committee at their
September 7, 2021 meeting.
Previous Council Action: None.
Financial Implications:
☒ See the attached Ordinance and related Budget Amendments (Exhibit A)
Approvals: ☐City Attorney ☒Director of Finance ☐City Manager
Associated Information:
• Ordinance 2021-30, page 2
• Exhibit A (list of budget amendments), page 3
9/21/2021
Agenda Item: 5c
CITY COUNCIL AGENDA
Agenda Item # 5c Page 2
ORDINANCE NO. 2021-30 AN ORDINANCE OF THE CITY OF HUNTSVILLE, TEXAS, AMENDING THE 2020-2021 ANNUAL BUDGET AND CAPITAL IMPROVEMENTS PROJECTS (CIP) BUDGETS, ORDINANCE NO. 2020-43 TO AMEND ADOPTED EXPENDITURES OF
THE BUDGET; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the 2020-2021 Annual Budget and CIP Budgets were adopted by Ordinance 2020-43 on September 15, 2020; WHEREAS, various unforeseen circumstances affecting the City have presented themselves during the course of the fiscal year; WHEREAS, the City Council considered the circumstances independently, deliberating appropriately on the associated revenues and expenditures and the overall impact on the general financial status of the City;
WHEREAS, pursuant to the laws of the State of Texas and the City Charter of the City of Huntsville, Texas, the City Council has determined that it will be beneficial and advantageous to the citizens of the City of Huntsville to amend the annual budget for fiscal year 2020 – 2021 and the Capital Improvements Projects (CIP) budget as set forth herein; and
WHEREAS, this ordinance combines the independent Council actions into one budget amendment document;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, that:
Section 1. The findings set forth above are incorporated into the body of this ordinance. Section 2. The annual budget for fiscal year 2020 – 2021 is hereby amended to include the expenditures and revenues in Exhibit “A” and the Capital Improvements Projects budget is hereby amended to include
the expenditures described in Exhibit “A” attached hereto and made a part of this ordinance as if set out verbatim herein. Section 3. All ordinances of the City in conflict with the provisions of this ordinance are hereby repealed, and all other ordinances of the City not in conflict with the provisions of this ordinance shall remain in full
force and effect.
Section 4. Should any section, portion, sentence, clause or phrase of this ordinance be declared
unconstitutional or invalid for any reason, it shall not invalidate or impair the force or effect of any other section or portion of this ordinance. Section 5. The necessity for amending the budget for the fiscal year 2020 – 2021 and Capital Improvements Projects, as required by the laws of the State of Texas, requires that this ordinance shall take effect immediately from and after its passage, as the law in such cases provides.
Section 6. This ordinance shall take effect immediately after its passage. PASSED AND APPROVED on this the 21st day of September 2021.
THE CITY OF HUNTSVILLE, TEXAS __________________________________ Andy Brauninger, Mayor
ATTEST: APPROVED AS TO FORM: ____________________________ _____________________________________ Kristy Doll, City Secretary Leonard Schneider, City Attorney
Budget Amendments FY 20-21
City Council - September 21, 2021
Exhibit A
Increase:General Fund - Non Departmental - Capital Purchases 750,000$
use of General Fund Unallocated reserves 750,000$
Explanation:
Increase:General Fund - City Council - Purchased Services/Contracts 364,000$
Increase:General Fund - Grant Revenue (ARP monies)364,000$
Explanation:
The purchase of property from the Walker County Hospital District for parking for the
Proposition 2 City Hall renovation and expansion project will cost $750,000. The property
is adjacent to City Hall. Use of General Fund Unallocated Reserves is being proposed by
staff to cover the cost of the purchase of the property. Using $750,000 of General Fund
Unallocated Reserves would bring the projected FY 20-21 ending balance down to
approximately $9,500,000 which exceeds the 25% required balance for FY 20-21 of
approximately $6,600,000 by $2,900,000
Huntsville Memorial Hospital has requested assistance from the City in the amount of
$364,000 to assist with hiring additional nursing staff for the hospital to treat patients with
COVID. The request does meet requirements for use of ARP funds. The City anticipated
receiving approximately $9.2M of ARP funds and staff's proposed use of those funds, as
previously shared with the Finance Committee and the full Council, was for $537,000 for
lost revenue, $7,500,000 for Water and Sewer projects, $525,000 for local non-profits,
$50,000 for equipment for the City's Emergency Operations Center, and $575,000 for
Administration and contingency. Recently the City was informed that our allocation of
ARP funds is about $10.4M; $1.2M more than the original allocation amount. The
$364,000 request from the hospital can be covered by the additional $1.2M the City is to
receive.
Agenda Item # 5d
Item/Subject: Consider the appointments to City of Huntsville Boards and Commissions for expired
terms or vacant board positions.
Initiating Department/Presenter: City Council
Presenter: Mayor Andy Brauninger
Recommended Motion: Move to appoint the Board and Commission members as presented.
Strategic Initiative: Goal #5 - Resource Development - Enhance the quality of life for citizens,
businesses and visitors by leveraging the human and fiscal resources available to the community.
Discussion: Please see the attached list for appointments or reappointments to the following City of
Huntsville Boards and Committees: Main Street Program Advisory Committee, Tourism Advisory Board,
and Veterans Affairs Advisory Board. The positions on these Boards and Committees are either expiring
on August 31, 2021 or were vacant and needed to be filled.
Previous Council Action: None
Financial Implications: ☒There is no financial impact associated with this item.
Approvals: ☐City Attorney ☐Director of Finance ☐City Manager
Associated Information:
• 2021 Board Appointments
9/21/2021
Agenda Item: 5d
CITY COUNCIL AGENDA
BOARDS & COMMISIONS SEATS BOARD MEMBER TERM EXPIRES
Tourism Advisory Board
#5 Tammy Farkas 8/31/2024
#6 Rob Hipp 8/31/2024
#7 Vacant 8/31/2022
#8 Leighanne Anderson 8/31/2023
#9 Vacant 8/31/2024
Main Street Program
#9 Appoint - Sean Chaney
Vetrans Affairs
#2 Vacant 8/31/2023
#3 Reappoint - Mike Christian 8/31/2024
#6 Vacant 8/31/2022
#7 Reappoint - Robert Tucker 8/31/2023
#8 Reappoint - Bill Butler 8/31/2024
#9 Vacant 8/31/2022
#10 Reappoint - Mark Robinson 8/31/2023
#11 Vacant 8/31/2024
#13 Vacant 8/31/2023
Agenda Item # 5e
Item/Subject: Second Reading: Consider adoption of Ordinance 2021-24 amending the City of
Huntsville Development Code Article 7 “Landscape and Buffers”, Article 15 “Terminology and
Definitions”, adding “Residential Planting Requirements”, Tree Preservation Standards and making
other provisions and declaring an effective date.
Initiating Department/Presenter: Development Services
Presenter: Kevin Byal, Director of Development Services/Building Official
Recommended Motion: Move to adopt Ordinance 2021-24 amending the City of Huntsville
Development Code Article 7 “Landscape and Buffers”, Article 15 “Terminology and Definitions”, adding
“Residential Planting Requirements”, Tree Preservation Standards and making other provisions and
declaring an effective date as recommended by the Planning Commission.
Strategic Initiative: Goal #1 - City Appearance - Provide policies, amenities, and events that enhance
the City’s already beautiful and historic natural environment.
Discussion: On February 2, 2021, the City Council adopted their 2021 Strategic Plan which identified
the need for tree preservation standards that apply to both residential and commercial development.
Staff went into the creative process with the goal of crafting a tree preservation ordinance that
promotes and protects the ecological, environmental, and health aspects as well as the physical
character of the City of Huntsville and its residents, but that is also not too onerous and will not
discourage development. Planning Staff presented the ordinance before Planning Commission for the
first time on May 20, 2021. Planning Staff took the comments, corrections, and additions from the
Planning Commission and presented a revised standard on July 1, 2021. With minimum comments,
corrections, and additions from the Planning Commission, planning staff made a few more edits and
brought forth the revised version of the tree preservation standard to Planning Commission on August
5, 2021. The resulting standards are collaborative work between staff, input from the development
community and the Planning Commission and are presented to City Council for their consideration.
At the August 25, 2021, City Council meeting a public hearing was conducted to give the public the
opportunity to provide comments on the proposed tree preservation ordinance. Two citizens spoke in favor or the ordinance and no one spoke in opposition.
Councilman Irving requested that staff incorporate a tree trimming policy into the ordinance that would
address the removal of tree branches blocking streetlights and trees overhanging public streets. The
Development Code currently requires that to remove a tree in the right of way, a permit must be
approved by the City. Follow up discussion between staff noted that Public Works already has
procedures in place that address tree trimming and removal issues in the right-of-way as they arise.
Consequently, staff did not attempt to incorporate into the tree preservation ordinance a policy
addressing tree trimming or removal from public right-of-way.
Previous Council Action:
9/21/2021
Agenda Item: 5e
CITY COUNCIL AGENDA
Agenda Item # 5e
• August 17,2021, Council held a public hearing to give the public the opportunity to comment
on the ordinance. There were two speakers that that spoke in support of the Tree Preservation
Ordinance and no one that spoke in opposition of the Tree Preservation Ordinance.
• September 7, 2021, Council considered the second reading of the tree preservation ordinance.
Three citizens spoke in favor of the ordinance and one spoke in opposition. Council voted to
postpone the second reading.
Financial Implications: ☒ There is no financial impact associated with this item. Although there is
no direct fiscal impact to the City in adoption of this ordinance, there will be some added costs to
developments which will vary widely by project.
Approvals: ☒City Attorney ☐Director of Finance ☒City Manager
Associated Information:
• Tree Preservation Ordinance
• Exhibit A – Tree Preservation Standards
• Planning Commission Discussion Form
• Planning Commission Minutes May 20, 2021, July 1, 2021, and August 5, 2021
ORDINANCE NO. 2021-24 AN ORDINANCE OF THE CITY OF HUNTSVILLE AMENDING CHAPTER 24 LAND DEVELOPMENT OF THE HUNTSVILLE, TEXAS CODE OF ORDINANCES BY ADOPTING REVISIONS TO THE DEVELOPMENT CODE OF THE CITY OF
HUNTSVILLE, TEXAS; REQUIRING THE PUBLICATION OF THIS ORDINANCE; PROVIDING FOR A SEVERABILITY CLAUSE; REPEALING ORDINANCES IN CONFLICT WITH THIS ORDINANCE; PROVIDING FOR A PENALTY; MAKING OTHER PROVISIONS AND FINDINGS THERETO; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the Development Code of the City of Huntsville, Texas Article 7 “Landscaping and Buffering” establish minimum requirements for landscaping and screening for the purpose of protecting and promoting the public health, safety and general welfare; and implementing the policies and goals contained in the City of Huntsville’s Comprehensive Plan and other adopted
plans of the City: WHEREAS, the Planning Commission recommended adopting the updates to the City of Huntsville Development Code; and
WHEREAS, the City Council held a public hearing at their meeting on August 17, 2021 prior to
consideration of amending the Ordinance; and NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, that:
SECTION 1: All of the above premises are hereby found to be true and correct legislative and factual findings of the City of Huntsville, Texas, and are hereby approved and incorporated into the body of this ordinance as if copied in their entirety. SECTION 2: The Development Code of the City of Huntsville, Texas, Article 7.102.C, 7.503.A
are hereby amended; Article 7.305 is added; Article 7.900 through Article 7.1300 are added; and Article 15.200 is hereby amended by adding new definitions; all as shown on Exhibit “A” attached hereto and incorporated herein.
SECTION 3: All ordinances or parts of Ordinances that are in conflict or inconsistent with the provisions of this Ordinance shall be, and the same are hereby, repealed and all other ordinances of the City not in conflict with the provisions of this Ordinance shall remain in full force and effect.
SECTION 4: Should any paragraph, sentence, clause, phrase or section of this Ordinance be
adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of
this Ordinance as a whole or any part or provision thereof, other than the part so declared to be invalid, illegal or unconstitutional. SECTION 5: This Ordinance, being a penal ordinance shall be published in the official City
newspaper at least twice within ten (10) days of its passage and becomes effective ten (10) days after
its date of passage by the City Council, all as provided by Article 4.13 of the Charter of the City of Huntsville, Texas.
SECTION 6.
It is hereby officially found and determined that the meeting at which this Ordinance was passed was open to the public and that public notice of the time, place and purpose of said meeting was given as required by the Open Meetings Act, Chapter 551 of the Texas Government Code.
First Reading Date: __________________
PASSED AND APPROVED on the Second Reading on this the ____th day of
____________ 2021.
THE CITY OF HUNTSVILLE
___________________________________
Andy Brauninger, Mayor ATTEST: APPROVED AS TO FORM:
___________________________ __________________________________ Kristy Doll, City Secretary Leonard Schneider, City Attorney
Page 1 of 8
Exhibit A
ARTICLE 7 Landscaping and Buffers
7.102 General Exemption
7.102.C Detached houses and duplexes, except that the Residential Planting
Requirements of Article 7.305 shall be provided for; and
7.305 Residential Planting Requirements
The minimum planting requirement for new single-family dwellings, Duplexes and Townhouses is two (2) Protected Trees per residential unit, one of which must be located
in the front setback of the lot.
7.503.A Location
Buffers must be provided along the entire property line that abuts the NC district or lot occupied by a detached house. Buffers may not be located on any existing, dedicated, or reserved public or private street or right-of-way.
Removal of existing vegetative buffers adjacent to lots occupied by detached
homes is prohibited. A minimum of ten feet (10’) of existing vegetative buffer
must be retained.
7.900 Tree Preservation
7.901 Purpose
The purpose of this section is to establish rules and regulations governing the protection of trees within the City of Huntsville, to encourage the protection of native, healthy and desirable trees and to provide for the replacement and replanting of trees that are removed from developed or undeveloped property, or are necessarily removed during construction,
development, or redevelopment. This Tree Preservation Criteria may be used as credit to
comply with the Landscaping and Buffer requirements of Article 7.100
7.902 Applicability.
The terms and provisions of this section shall apply to real property as follows:
7.902.A All real property upon which any designated protected tree is located.
7.902.B All vacant and undeveloped property.
7.902.C All property to be redeveloped, including additions and alterations.
7.902.D The yard areas of all developed property, excluding owner-occupied single-
family residential property; rental properties are not excluded and are
specifically subject to the provisions of this section.
Page 2 of 8
7.902.E All easements and rights-of-way except those included in a plat approved by the City Planning Commission shall meet the terms and provisions of this
section. Protected trees located within platted rights-of-way, easements and
buildable areas need not be included in calculated replacement plans.
7.902.F City of Huntsville Officials may require the removal of nuisance trees that can have an adverse effect on other trees or structures, either on public or private properties, by requiring their removal.
7.1000 Inspections, permits and fees
7.1001.A Tree removal permit required A tree removal permit shall be required when protected trees are to be
removed from a site. No person, directly or indirectly, shall cut down, destroy, remove or move, or effectively destroy through damaging, any protected tree situated on property described above without first obtaining a tree removal permit from the city.
7.1001.B Protected tree removal permit
Permits for removal or replacement of protected trees covered herein shall be obtained by making application on a form prescribed by the city and submitted to the Development Services Department. The application shall be accompanied by a Tree Survey/Inventory showing the exact location, caliper
size, height, and common name of all protected trees to be removed. The application shall also be accompanied by a written document indicating the reasons for removal or replacement of protected trees and two copies of a Tree Survey/Inventory plan drawn to the largest practicable scale indicating the following:
1. Location of all existing or proposed structures, improvements such as streets, alleyways, etc. and site uses, properly dimensioned and referenced
to property lines, setback and yard requirements and special relationships.
2. Date, scale, north point, and vicinity map.
3. Location of existing and proposed public utility easements, public access
easements and drainage easements on the lot.
4. Location and dimensions of visibility triangles on the lot.
5. Location of all protected trees on the site to remain that are three-inch caliper or greater when measured at a point 4½ feet above the ground level. Protected trees to remain shall be designated by a circle.
6. Location of all protected trees on the site to be removed that are three-inch caliper or greater when measured at point 4½ feet above the ground level.
Protected trees to be removed shall be designated by a triangle.
7. Tree information required above shall be summarized in legend form on the plan and shall include the reason for the proposed removal.
Page 3 of 8
8. Protected tree replacement plan: The plan shall exhibit the location of protected trees proposed to be replaced and include a legend indicating the
species, caliper size and height of proposed tree replacement. Replacement
trees shall be designated by a square.
7.1002.B Tree protection plan: The plan shall describe how existing healthy protected trees proposed to be retained will be protected from damage during
construction.
7.1002.C Application review. Upon receipt of a complete application, Development Services staff shall review the applications for compliance with this section;
said review may include a field inspection of the site, and the application may be referred to such departments as deemed appropriate for review and recommendations. Following the review and inspection, the permit applications will be approved, disapproved, or approved with conditions by
Development Services staff as appropriate.
7.1100 Regulations and Restrictions
7.1101.A Protected tree removal.
No protected tree or trees shall be removed prior to issuance of a tree removal permit unless one of the following conditions exist:
1. The protected tree is located in a public utility easement, public access
easement or public street right-of-way as recorded on a plat initially
approved by the Planning Commission.
In the event that certain protected trees outside the above areas or protected trees located partially outside the easement are requested to be removed to allow the operation of equipment, the applicant shall submit a site plan which indicates the exact operation area needed.
2. The protected tree is diseased, injured, in danger of falling, interferes with utility service, creates unsafe vision clearance, or conflicts with other ordinances or regulations, the protected tree may be removed with the approval of the director of development services.
3. Except for the above, under no circumstances shall there be clear cutting of
protected trees on a property prior to the issuance of a tree removal permit.
4. The Director of Development Services may approve the removal of protected trees that interfere with the construction of a building and/or the drainage of a lot.
5. The Director of Development Services may approve of the removal of a
protected tree or trees located within a drainage easement if the removal is determined to be necessary to ensure the proper construction or maintenance of said drainage easement.
6. The following species of trees are exempt from the protection and
preservation requirements stated within this ordinance and are considered
Page 4 of 8
invasive species. Invasive trees shall not be planted nor counted towards any tree caliper credit.
• Tree of Heaven
• Mimosa, Silk Tree
• Paper Mulberry
• Chinese Parasol Tree
• Large Leaf Privets
• Chinaberry 1
• Chinese Pistache 1
• Chinese Tallow
This list may not be all inclusive and is subject to change and will be periodically
reviewed and updated if necessary, by the Planning Commission.
7. If under brushing is essential in order to conduct survey work necessary to produce a Survey/Inventory plan, the applicant shall request approval from
the Director of Development Services prior to any under brushing activities
taking place.
7.1101.B Upon issuance of a tree removal permit: a developer shall be allowed to remove protected trees located on the buildable area of the property as
identified on the approved tree survey/inventory.
7. 1101.C Protected tree replacement requirements. In the event that it is necessary to remove protected tree(s) outside the buildable area, the developer, as a condition of issuance of a protected tree removal permit, may be required to replace the protected tree(s) being removed with comparable trees somewhere
within the development. Trees removed from the Buildable Area are not
required to be replaced
7. 1101.D Replacement tree specifications: A sufficient number of trees shall be planted to equal, in caliper, the ratio of diameter of the trees removed. Said replacement trees shall be a minimum of two inches caliper and six (6) feet in
height when planted and shall be selected from the list of approved
replacement trees maintained by the Development Services Department.
7. 1101.E In order to maximize the preservation of existing trees, surveyed trees in good health that have a caliper of at least six (6) inches measured four feet – six inches (4’-6”) from the ground may provide credit towards the replacement
requirements. Each existing tree preserved between six inches (6") and twelve
inches (12") in diameter measured four feet – six inches (4’-6”) from the ground may receive replacement credits for two (2) replacement trees. Each existing tree preserved greater than twelve (12") inches in diameter measured four feet – six inches (4’-6”) from the ground may receive credit for three (3) replacement trees.
Page 5 of 8
7. 1101.F Protected trees that are removed without a permit shall be replaced at an equivalent caliper inch equaling 100 percent of those protected trees removed
from the site as estimated by the Director of Development Services.
7. 1101.G No replacement tree may be planted within a visibility triangle, a watercourse, utility easement or an existing or proposed street or alley.
7. 1101.H A replacement tree must have a minimum caliper of at least two inches when
measured at 4 to 6 inches above ground level.
7. 1101.I A replacement tree that dies must be replaced by another replacement tree that
complies with the tree removal permit.
7.1102 Tree reforestation fund: In situations in which it is not feasible to place the replacement trees on either the subject site or an alternate site, the applicant, upon approval of the Director of Development Services, may make a payment into the tree reforestation fund.
The fund amount shall be equivalent to 100 percent of the tree ratio replacement cost. For those protected trees removed without a permit, the fund amount shall be the equivalent of 100 percent of the cost to replace the same caliper of trees removed without a permit. The funds shall be used only for purchasing and planting trees on public property. The amount
of payment that is required for each replacement tree should be calculated based on the
average cost of a quality tree added to the average cost of planting a tree. No certificates of occupancy shall be issued for the site until the required payment has been made to the tree reforestation fund.
7.1200 Development Standards
7.1201 Tree protection.
7.1201.A During any construction or land development, the developer shall clearly mark all protected trees to be maintained and may be required to erect and maintain protective barriers around all such trees or groups of trees. The developer shall not allow the movement of equipment or the storage of equipment, materials,
and debris or fill to be placed within the drip line of any protected tree.
7.1201.B During the construction stage of development, the developer shall not allow the cleaning of equipment or material under the canopy of any protected tree or trees to remain. Neither shall the developer allow the disposal of any waste material such as, but not limited to, paint, oil, solvents, asphalt, concrete,
mortar, etc., under the canopy of any protected tree or trees.
7.1201.C No attachment or wires of any kind, other than those of a protective nature, shall be attached to any protected tree.
7.1201.D Exceptions.
1. In the event that any tree shall be determined to be in a hazardous or
dangerous condition so as to endanger the public health, welfare or safety, and require immediate removal without delay, authorization may be given by the Director of Development Services and the tree may then be removed without obtaining a written permit as herein required.
Page 6 of 8
2. During the period of an emergency such as a tornado, storm, flood, the requirements of this section may be waived as may be deemed necessary by
Director of Development Services.
3. Utility companies franchised by the City may remove trees which endanger public safety and welfare by interfering with utility service.
4. Properties that retain Walker County Appraisal District agricultural, timber
or wildlife exemptions are excluded from the provisions of this section.
5. The provisions of this section shall not apply to any development that has received a building permit approval prior to the effective date of this ordinance.
7.1300 Enforcement for Violations
7.1301 The City Arborist, Building Official or an authorized representative of the City shall have
the authority to place a Stop Work Order on any activity involving the removal of Protected
Tree(s) or that may otherwise endanger trees contrary to the provisions of this Subsection. The Director of Development Services may deny all Permits and Certificates of Occupancy for any site which is not in compliance with this Subsection.
7.1302 It shall be a violation of this article for any person to intentionally or knowingly remove or
destroy or allow the removal or destruction of a protected or Historic tree(s) located on any property to which this article applies, or for any person to knowingly or intentionally perform any regulated activity in manner that does not conform to the requirements of this article. Any act or omission contrary to the requirements or directives of this article, or any breach of any duty imposed by this article shall constitute a violation hereof.
7.1303 Any person, firm, company or corporation violating any provision of this article shall, upon
conviction be subject to a minimum fine of $200.00 per violation. Each and every tree removed in violation of this article will be considered a separate violation. Additionally, each and every day until the illegally removed tree has been replaced or otherwise mitigated may be considered a separate violation.
7.1304 Protected Tree Species
• Live Oak
• Pecan Tree
• Smooth Hackberry
• American Elm
• Water Oak
• Redbud
• Loblolly Pine
• Crepe Myrtle
• Catalpa
• Post Oak
Page 7 of 8
• Bois d’Arc
• Southern Red Oak
• Black Hickory
• Cherry Laurel
• Winged Elm
• Sycamore Tree
• Box Elder
• Southern Magnolia
• Cottonwood
• Mimosa
• Chinaberry
This list may not be all inclusive and is subject to change and will be periodically
reviewed and updated if necessary, by the Planning Commission.
ARTICLE 15 Terminology and Definitions
15.200 DEFINITIONS
Buildable Area
That portion of a building site on which a structure or building improvements may be erected, and including the actual structure, driveway, parking lot, pool, and other construction as shown on the site plan.
Caliper-Existing Tree(s)
Existing tree caliper shall be determined by measuring the tree width at a point 4½ feet above
ground level.
Caliper-Replacement Tree(s)
Replacement tree caliper shall be determined by measuring the tree width at a point 4 to 6 inches above ground level. This measurement is used for measuring nursery stock and is only
used for trees that are to be planted or relocated. The minimum caliper of a replacement tree
is 2 inches.
Protected Tree Replacement Plan
Is a plan that include all information necessary to demonstrate tree replacement along with
tree preservation meet the forestation requirements of this section.
Ratio of Replacement
Refers to protected trees to be replaced at a ratio of one inch for every three inches removed and historic trees are to be replaced at a ratio of two inches for every one inch removed.
Tree
Page 8 of 8
Any self-supporting woody plant species, which normally grows to an overall minimum height of 20 feet.
Tree(s) Historic
A tree(s) which has been found by the city to be of a notable historic interest because of its age, type, size or historic association and has been so designated as part of the official records of the city.
Tree(s) Nuisance
A tree(s) that is non-native invasive, diseased, invested with harmful insects, dying or dead.
Tree(s)Protected
Any self-supporting woody perennial plant which has a caliper of three inches (3”) or more when measured at a point of 4½ feet above ground level and which normally attains an overall height of at least 20 feet at maturity, usually with one main stem or trunk and many branches.
It may appear to have several stems or trunks as in several varieties of oaks and is not diseased,
dying, dead, or a nuisance tree as determined by an urban forester or International Society of
Arboriculture (ISA) certified arborist.
Tree Survey/Inventory
A survey that depicts the location, size and number of trees within the survey area. The survey shall summarize the total number of trees and the diameter inches of trees that will be removed and/or will be preserved. A Tree Survey/Inventory for treed areas that exceed one acre shall be prepared by a registered landscape architect, registered architect, registered engineer or registered surveyor.
Page 1 of 1
PLANNING COMMISSION
AGENDA ITEM DISCUSSION FORM
Prepared by: Charles A. Young, Planner
SUBJECT: City of Huntsville Tree Preservation Ordinance
MEETING DATE: August 5, 2021
TYPE OF REVIEW: Ordinance Review - Final Review
Overview On February 2, 2021, the City Council encouraged the Planning Division to develop a tree preservation ordinance for the City of Huntsville. Planning Staff took on this important task and started constructing a draft of a tree preservation ordinance. Staff went into the creative process with the goal of making a tree preservation ordinance that promotes and protects the ecological, environmental, and health aspects as well as the physical character of the City of Huntsville and its residents, but that is also not too onerous and won’t discourage development. Planning Staff presented the ordinance before Planning Commission for the first time on May 20, 2021. Planning Staff took the comments, corrections, and additions from the Planning Commission and presented a revised version at the July 1, 2021 Planning Commission Meeting. After receiving feedback from the community, planning staff made a few more minor edits and is bringing forth the second revised version of the tree preservation ordinance to the Planning Commission. The tree ordinance’s intention is to clearly identify all applicable areas within the city, the steps one must take to determine the type and number of trees on a property, the procedure for potential tree removal, replacement tree requirements, and penalties for not adhering to the tree ordinance. This document is also designed to discouraged developers from destroying trees that are protected in the Huntsville area. It is our hope that this document is our final draft, however the tree ordinance is open for review, comments, and/or corrections from the Planning Commission. STAFF RECOMMENDATION: Staff recommends the Planning Commission review and make a recommendation that the final Tree Preservation Ordinance goes before City Council for approval and adoption into the City of Huntsville’s Development Code under Article 7. ATTACHMENTS: Revised Final Tree Preservation Ordinance.
Page 1 of 2
Approved 6- 3-2021
MINUTES OF THE MEETING OF THE PLANNING COMMISSION HELD IN THE COUNCIL
CHAMBERS, AT CITY HALL, 1212 AVENUE M, HUNTSVILLE, TEXAS ON THE 20TH DAY
OF May 2021 AT 5:30 PM.
Members present: Woods; Hooten; Thompson; Lynch; Carpenter
Members absent: None
City staff present: Irones; Byal; Young; Sanchez
1. CALL TO ORDER
The meeting was called to order by Chairman Woods. [5:30 PM]
2. PLEDGE OF ALLEGIANCE
a. U.S. Flag
b. Texas Flag
3. INVOCATION
Chairman Woods led the invocation.
4. DISCUSS the Preliminary Review for the proposed City of Huntsville’s Tree Ordinance.
Chairman Woods stated his disappointment for subdivisions that have stripped trees in
order to build. Planner, Charles Young gave brief introduction of the Proposed Tree Ordinance.
The goal of this ordinance is to promote and protect the ecological, environmental and health
aspects as well as the physical character of the City. City Staff hopes to clearly identify all
applicable areas within the city, all the steps one must take to determine the type and number of
trees on a property, the procedure for potential tree removal, replacement tree requirements,
penalties for not adhering to the tree ordinance, and protected, common, and invasive species in
the Huntsville area. The goal is to present a final ordinance to Planning Commission in June
2021.
Commissioner Thompson began by asking for more clarification to whom this ordinance
is applied to. City Planner, Armon Irones clarified that is applied to single-family home
developers. Commissioner Lynch stated that it applies to personal property but not rented
property (Section C4). Commissioner Thompson asked if this will prevent residents from doing
upkeep on their homes after they have moved in already, to which Armon stated that this does not
prevent residents from up keeping their homes, rather it is for developers who wish to build
single-family dwellings.
Commissioner Lynch raised a question about parks and cemeteries. Armon confirmed
that the ordinance does not apply to parks and cemeteries, but that could be open for discussion.
Chairman Woods referenced the Mayor, who is seated in the audience, because he is
building a new home; if he wanted, the Mayor could clear cut the trees on his property to build
the home – this is something we want to prevent. He asked the Mayor about the process of
building a new home in Elkins Lake. The Mayor responded with by first needing approval by the
subdivision, then by receiving a Certificate of Compliance from the Planning Department. Vice-
Chairman Hooten asks if Staff would be willing to change the definition to any development that
undergoes a process with the City Development Services must meet the requirements of the Tree
Ordinance.
Commissioner Thompson asked for clarification in regards to enforcement after a family
has moved into their home. Per the Draft Ordinance, it states that before the home is occupied by
the home owner, they must comply with the ordinance, however after they have moved in, they
no longer have to comply with the ordinance. It is difficult to enforce the ordinance after the
owner has moved into the home already. Commissioner Lynch referenced a state law that claims
there cannot be restictions on personal property.
Chairman Woods wishes that the property owner have agency in choosing which trees
are places on their property via replacement. Armon gave a suggestion on the changing or
Planning Commission Minutes
May 20, 2021
Page 2 of 2
Approved 6-3-2021
additional verbiage to include what is being discussed. Chairman Woods reiterated what is
desired going forth: the inclusion of both residential and commercial uses, and for the City to not
be so strict on the replacement of trees. Commissioner Thompson wished for it to specified in the
ordinance, not implied.
One suggestion for smaller lots and their ability to remove trees and replace them is for
designating green space on the property and within that green space, having trees. City Staff
should clarify what “green space” is in the ordinance as well as what makes up green space. Staff
should consider working with the City Arborist.
In regards to the replacement of trees, if any developers wish to remove trees, they would
have to submit a tree survey showing every tree on the property, the species and diameter. If a
developer wishes to remove any trees, they must replace an equivalent diameter inch of the trees
originally removed. When Commissioner Thompson suggests heavier regulation, City
Development Director, Kevin Byal stated that while the City wants to protect the landscape and
environment, City Staff should not regulate too much to where it drives developers away.
The ordinance would not be applied to developers to must remove trees in roadways and
actual footprint of the house.
Vice-chairman Hooten asked who would be convicting and fining the developers, not
homeowners, if they do not comply with the ordinance. Kevin stated that they would be issued a
citation if found in violation and would have to go through the municipal court.
Commissioner Carpenter asked how long the developer would have to replace the
removed trees since the time of their removal. Kevin clarified that it is perpetual, in any given
time in the future it must be replaced with no time limit. City Staff will look at the trees listed in
the ordinance and their compatibility with the City. Chairman Woods asked if current
developments would have to comply with the new adopted ordinance. Kevin stated this is a
decision for the City Attorney.
City Staff will apply the revisions to the draft and have it as an action item by June.
5. DISCUSS & CONSIDER the minutes of May 6, 2021 meeting.
Vice-chairman Hooten moved to approve the minutes from the May 6, 2021 meeting.
Second was by Commissioner Thompson. The vote was unanimous.
7. PUBLIC COMMENTS
There were none.
8. ITEMS OF COMMUNITY INTEREST
Announcements concerning items of community interest from the Commission and City
Staff for which no action was discussed.
Armon Irones stated that Thursday, May 27, at 1:30, there will be the third and
final CPAC meeting for the Comprehensive Plan at the Huntsville Public Library
Meeting Room.
The first City Council meeting in July will host a joint workshop with the
Planning Commission to discuss the Comprehensive Plan and 4:30 PM.
Planning Commission is still in need of two members and are taking applications
from the public.
The Mayor states that City Council would like community input in choosing the
new location for City Hall.
9. ADJOURNMENT
Vice-Chairman Hooten moved to adjourn the meeting. Second was by Commissioner
Carpenter. The vote was unanimous. [6:21 PM]
Page 1 of 3
Approved 7-15-2021
MINUTES OF THE MEETING OF THE PLANNING COMMISSION HELD IN THE COUNCIL
CHAMBERS, AT CITY HALL, 1212 AVENUE M, HUNTSVILLE, TEXAS ON THE 1ST DAY OF
JULY 2021 AT 5:30 PM.
Members present: Woods; Hooten; Lynch; Carpenter; Gumm, Emmett
Members absent: Thompson
City staff present: Irones; Byal; Young
Audience present: Larry and Cherry Mock – Modification and Waivers of Subdivision Standards request
for the Replat of Mock Property Tract 2 & Sarah Green – Northgate Meadows Section
4, Block 4, Lot 13
1. CALL TO ORDER
The meeting was called to order by Chairman Woods. [5:30 PM]
2. PLEDGE OF ALLEGIANCE
a. U.S. Flag
b. Texas Flag
3. INVOCATION
Vice-Chairman Hooten led the invocation.
4. CONSIDER the Replat of Mock Property Tract 2, located in the ETJ of the City of Huntsville.
City Planner, Armon Irones gave an overview of the Minor Plat stating that is the subject
property is proposed to be single family homes. The purpose of the plat was to create Lots 2B and
2C out of Tract 2. The applicant asked for Waivers for the maximum length of the staff and the
minimum width to depth ratio. Staff recommended to approve the plat with the Modification and
Waiver of subdivision standards. Vice-Chairman Hooten asks for the reason of subdividing the
tract. The applicant, Larry Mock, stated that the reason for this was to get the property put in his
name.
Commissioner Lynch moved to approve the plat with modification waiver. Second was by
Commissioner Gumm. The vote was unanimous.
5. CONSIDER the Preliminary Plan and Modification and Waivers of Subdivision Standards for
Northgate Meadows Subdivision, Section 4, Block 4, Lot 13 located in the ETJ the City of
Huntsville.
Armon Irones gave an overview of the subject property. The applicant is asking for
Modification/Waivers of Subdivision Standards from the paving width requirements for
Hadley Creek Bend and Cyntolyn Lane. The applicant informed staff that there is not
enough room to provide the required 28’ width of paving along those roads as they each
are only 15’ wide. They are also asking for a waiver not to pave Cyntolyn Lane. City
Staff recommends the Planning Commission to approve the Modification/Waivers of
Subdivision Standards. Chairman Woods inquired if Northgate Meadows had complied
the previous Waivers that were granted and Armon Irones confirmed that they had.
Commissioner Lynch questioned if the City would be responsible for paving the road if
this area were to be annexed into the City and the Director of Development Services,
Kevin Byal confirmed that it would.
The applicant, Sarah Green, gave a detailed overview of the land. She explained the tract
is being subdivided to match the rest of the properties around it. She feels that it is in the
best interest of the property owners and the community to not pave Cyntolyn Lane and to
keep it as a gravel-mix road.
Planning Commission Minutes
July 1, 2021
Page 2 of 3
Approved 7-15-2021
Vice-Chairman Hooten moved to approve the modification waivers. Second was by
Commissioner Gumm. The vote was unanimous.
6. CONSIDER the Final Review for the proposed City of Huntsville’s Tree Ordinance.
Chairman Woods gave the new Commissioners a brief background of the want and need
for a tree ordinance in the City of Huntsville. Planner, Charles Young gave a brief introduction of
the revised Proposed Tree Ordinance. Staff took the recommendations from the Planning
Commission from the last meeting and made the necessary changes. The goal of this ordinance is
still to promote and protect the ecological, environmental and health aspects as well as the physical
character of the City. City Staff hopes to clearly identify all applicable areas within the city, all the
steps one must take to determine the type and number of trees on a property, the procedure for
potential tree removal, replacement tree requirements, penalties for not adhering to the tree
ordinance, and protected, common, and invasive species in the Huntsville area. The goal is to
present a final ordinance to City Council in August 2021.
Commissioner Lynch suggested that the pages be numbered. She also questioned the
connection of the tree diameter/caliper requirements on Page One under Planting Requirements
and Page Four Section 3a. Chairman Woods questioned the specifics of the Protected Tree category
and Commissioner Gumm questioned about not including native and desired trees in the Protected
Trees definition and suggested that they be added. All questions were answered by Kevin Byal to
the satisfaction of the commissioners. Commissioner Emmett questioned how the ordinance would
be implemented. Kevin Byal described the implementation and review process. Commissioner
Emmett expressed concern about the ordinance potentially being too onerous to developers and
commissioners discussed how the ordinance would help stop the reduction of trees and that the
City Council seemed supportive of an effort to preserve trees in Huntsville. Commissioner Gumm
questioned about the work that had to be done to determine the historic status of a tree(s). Kevin
Byal explained that the City would determine if a tree is historic or not. Commissioner Carpenter
questioned if small property owners would have to hire a tree surveyor and Kevin Byal explained
that those whose property is less than one acre will not need a tree survey. Commissioner Carpenter
questioned Page 5 and any standards for utility companies to remove trees. Kevin Byal explained
that the City doesn’t have any enforcement authority in that area.
Vice-Chairman Hooten moved to forward the tree preservation criteria to City Council for
review and adoption if appropriate with the changes and suggestions made by the Planning
Commission. Second was by Commissioner Carpenter. The vote passed 5-1. Commissioner
Emmett voted in opposition.
7. CONSIDER the minutes of the June 3, 2021 meeting.
Vice-Chairman Hooten moved to approve the minutes from the June 3rd meeting. Second
was by Commissioner Carpenter. The vote was unanimous.
7. PUBLIC COMMENTS
There were none.
8. ITEMS OF COMMUNITY INTEREST
Announcements concerning items of community interest from the Commission and City
Staff for which no action was discussed.
City Council and Planning Commission have a joint workshop for the
Comprehensive Plan Update on July 6th at 5:00 PM. at the Huntsville Library.
Planning Commission Minutes
July 1, 2021
Page 3 of 3
Approved 7-15-2021
There will be a Planning Commission meeting on July 15th.
9. ADJOURNMENT
Vice-Chairman Hooten moved to adjourn the meeting. Second was by Commissioner
Gumm. The vote was unanimous. [6:09 PM]
Page 1 of 2
Approved 8-19-2021
MINUTES OF THE MEETING OF THE PLANNING COMMISSION HELD IN THE COUNCIL
CHAMBERS, AT CITY HALL, 1212 AVENUE M, HUNTSVILLE, TEXAS ON THE 5th DAY OF
August 2021 AT 5:30 PM.
Members present: Woods; Hooten; Thompson; Lynch; Carpenter; Gumm; Emmett
City staff present: Irones; Young; Miller
Audience present: Gene Woods – 907 Lincoln Drive, Meredith - Comprehensive Plan Update, Daniel
Beamon – Rockbridge Phase 4 & Phase 5, and Charles Von Schmidt
1. CALL TO ORDER
The meeting was called to order by Chairman Woods. [5:30 PM]
2. PLEDGE OF ALLEGIANCE
a. U.S. Flag
b. Texas Flag
3. INVOCATION
Vice-Chairman Hooten led the invocation.
4. CONSIDER the Reduction of a Setback line at 907 Lincoln Drive in conjunction with a 20’ wide
Utility Easement on the property, located in the City Limits of Huntsville.
City Planner, Armon Irones gave an overview of the subject property stating that it is
proposed to be used for a manufactured home. The property owner would dedicate a 20’ Utility
Easement to the City of Huntsville in exchange for a reduced front setback of 15’ instead of 25’.
Staff recommended the approval of the reduced setback from 25’ to 15’ for 907 Lincoln Drive since
the property owner would be dedicating a 20’ wide Utility Easement to City. Commissioner Gumm
questioned if the City would be losing anything with granting the 15’ front setback and the reason
for a 25’ front setback. Mr. Irones and Chairman Woods answered Commissioner Gumm’s
questions to his satisfaction. City Surveyor, Gene Woods, introduced himself and gave more insight
and background of the property. Commissioner Emmett questioned if granting the 15’ front setback
would interfere with the 20’ Utility Easement and Mr. Woods insured that it would not. Chairman
Woods asked if the City was pleased with agreement and Commissioner Lynch asked if the city
needed the 20’ Utility Easement. Mr. Woods answered both of these questions in the affirmative.
Vice-Chairman Hooten moved to approve. Second was by Commissioner Thompson. The
vote was unanimous.
5. CONSIDER the Final Review and Recommendation to City Council for the Huntsville
Comprehensive Plan Update.
Armon Irones gave an overview of the special meeting that was held at 5:00 p.m.
subject property. It was brought to everyone’s attention that an area on Highway 30 on
the Future Land Use Map should be residential instead of commercial. It was agreed that
the Future Land Use Map should reflect what currently exist in that area.
Vice-Chairman Hooten moved to accept the Comprehensive Plan Update as corrected and
recommended that it be sent to City Council for review. Second was by Commissioner
Lynch. The vote was unanimous.
6. CONSIDER the Final Plats of Rockbridge Subdivision, Phase 4 & Phase 5, located in the City
limits of Huntsville.
Planning Commission Minutes
August 5, 2021
Page 2 of 2
Approved 8-19-2021
Armon Irones gave an overview of the subject property. The applicant submitted a
Modification/Waiver of Subdivision Standards to not provide turnarounds on dead-end
streets, those streets being Pecos Drive in Phase 4 and Blanco Drive in Phase 5. Staff
recommended approval of the final plats as submitted. Chairman Woods questioned the
number of streets affected and the design of the subject street. Commissioner Thompson
questioned if the street would be extended and why there was no cul-de-sac or turnaround.
Daniel Beamon explained that the developer does not own the neighboring property in
order to extend the street and that there is a cross street that can service as a turnaround.
Mr. Beamon also pointed out the area to the commissioners on a map.
Commissioner Lynch moved to approve the final plats as submitted. Second was by
Commissioner Thompson. The vote was unanimous.
7. CONSIDER the Final Re-Review for the proposed City of Huntsville Tree Ordinance.
Planner, Charles Young gave an overview of the proposed City of Huntsville Tree
Ordinance. Commissioner Lynch suggested that word may on Page 4 in Section 7.1101C be
changed to shall. Commissioner Lynch questioned if it was still a requirement that a tree survey be
done by a registered surveyor, architect, or landscaper for Page 2 of 8 in Section 7.101B. That
requirement was removed.
Vice-Chairman Hooten moved to accept the final re-review with the minor word change
on Page 4 in Section 7.1101C and recommended that it be sent to City Council for review.
Second was by Commissioner Gumm. The vote passed 6-1. Commissioner Emmett voted
against the motion.
8. CONSIDER the minutes of the July 15, 2021 meeting.
Vice-Chairman Hooten moved to approve the minutes from the July 15th meeting. Second
was by Commissioner Lynch. The vote was unanimous.
9. PUBLIC COMMENTS
There were none.
10. ITEMS OF COMMUNITY INTEREST
Announcements concerning items of community interest from the Commission and City
Staff for which no action was discussed.
Main Street Program will be having Concert in the Park every Thursday in August
at Rather Park from 7:00 p.m. to 9:00 p.m.
9. ADJOURNMENT
Commissioner Thompson moved to adjourn the meeting. Second was by Vice-Chairman
Hooten. The vote was unanimous. [6:09 PM]