City Council Meeting Agenda Packet 12-7-2021Agenda Item # 2a Page 1
Item/Subject: Consider adoption of Ordinance 2021-40 to amend the budget for FY 21-22 and/or CIP
Project budgets.
Initiating Department/Presenter: Finance
Presenter: Steve Ritter
Recommended Motion: Move to adopt Ordinance 2021-40 to amend the budget for FY 21-22 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 Amendment was presented to the Finance Committee at their
November 16, 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 2021-40, page 2
•Exhibit A (list of budget amendments), pages 3 - 4
12/7/2021
Agenda Item: 2a
CITY COUNCIL AGENDA
Agenda Item # Page 2
ORDINANCE NO. 2021-40 AN ORDINANCE OF THE CITY OF HUNTSVILLE, TEXAS, AMENDING THE 2021-2022 ANNUAL BUDGET AND CAPITAL IMPROVEMENTS PROJECTS (CIP) BUDGETS, ORDINANCE NO. 2021-27 TO AMEND ADOPTED EXPENDITURES OF THE BUDGET; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the 2021-2022 Annual Budget and CIP Budgets were adopted by Ordinance 2021-27 on September 21, 2021;
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 2021 – 2022 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 2021 – 2022 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 2021 – 2022 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 7th day of December 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 21-22
December 7, 2021
Exhibit A
Increase:Police Grants SRF - Grant Expenses 6,380$
Increase:Police Grants SRF - Grant Expenses - reimburse Walker County 6,380$
Increase:Police Grants SRF - Grant Revenues 12,760$
Explanation:
The City was awarded a U.S. Dept. of Justice "JAG" grant on October 13, 2021 for $12,760
with one half for the City and one half to go to Walker County. The City will be purchasing
8 body cameras to be used by City police officers. The County intends to use their share of
the grant funds for purchasing various office and computer supplies. The grant end date is
September 30, 2022.
Agenda Item # 2b
Item/Subject: Consider authorizing the City Manager to enter into a two-year agreement with
Skywonder for the 4th of July Fireworks Display.
Initiating Department/Presenter: Parks & Leisure
Presenter: Penny Joiner, Parks and Leisure Director
Recommended Motion: Move to authorize the City Manager to enter into a two-year agreement with
Skywonder for the 4th of July Fireworks Display for FY 21-22 and FY 22-23 in the amount of $25,000 with
a combined total of $50,000 for both years.
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 of Huntsville Parks and Leisure Departments hosts a 4th of July Celebration annually
at Kate Barr Ross Park on Independence Day. The celebration ends with a fireworks display.
The Parks and Leisure Department went out for bids for a two-year agreement for fireworks display for
year 2022 and 2023. The annual cost for the fireworks will be $25,000 with a combined total of $50,000
for both years.
Previous Council Action. Council approved the adopted budget which included $25,000 for the
fireworks contract on September 21, 2021.
Financial Implications: ☒Item is budgeted in the amount of $ 25,000.00
Approvals: ☐City Attorney ☐Director of Finance ☒City Manager
Associated Information:
•Bid Tabulation
12/7/21 Agenda
Item: 2b
CITY COUNCIL AGENDA
Sky Wonder
Pyotechnics LLC
Description Total Bid Amount Total Bid Amount Total Bid Amount
Aerial Fireworks Display Per Year $25,000.00 $ $
Bid Tabulation
Project Name: Aerial Fireworks Display
Invitation for Bid NO. 02-22
Date: Thursday, October 27, 2021 Time: 2:00 PM Central Time
Agenda Item # 3a
Item/Subject: Receive a presentation by city staff explaining private development infrastructure
funding alternatives including but not limited to MUDs and Public Improvement Districts.
Initiating Department/Presenter: Development Services
Presenter: Kevin Byal, Director of Development Services
Recommended Motion: No action necessary - presentation only.
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: The city has been approached by several developers seeking the city’s approval of
alternative infrastructure funding mechanisms with interest in developing residential tracts. As part of
the discussion between the developers and the city, they have expressed interest in creating Municipal
Utility District’s (MUD) or Public Improvement District’s (PID) to assist with the financing the
infrastructure of the development. The goal of this presentation is to educate the Council on these
districts and to answer any questions that may arise about the creations of said districts. The item is
presented to seek direction on the Council’s preference of one type of Special Utility District over
another.
Previous Council Action: At the February 2, 2021, City Council meeting, Council approved a resolution
supporting the request for the creation of in city MUD Number 1.
Financial Implications: ☒There is no financial impact associated with this item. There is no financial impact associated with
this presentation; the financial impact of any action the Council considers will be included at the time
of consideration.
Approvals: ☐City Attorney ☐Director of Finance ☒City Manager
Associated Information:
12/7/21
Agenda Item: 3a
CITY COUNCIL AGENDA
Agenda Item # 3a
Item/Subject: Receive a presentation by city staff explaining private development infrastructure
funding alternatives.
Initiating Department/Presenter: Development Services
Presenter: Kevin Byal, Director of Development Services
Recommended Motion: No action necessary - presentation only.
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: The city has been approached by several developers seeking the city’s approval of
alternative infrastructure funding mechanisms with interest in developing residential tracts. As part of
the discussion between the developers and the city, they have expressed interest in creating Municipal
Utility District’s (MUD) or Public Improvement District’s (PID) to assist with the financing the
infrastructure of the development. The goal of this presentation is to educate the Council on these
districts and to answer any questions that may arise about the creations of said districts. The item is
presented to seek direction on the Council’s preference of one type of Special Utility District over
another.
Previous Council Action: At the February 2, 2021, City Council meeting, Council approved a resolution
supporting the request for the creation of in city MUD Number 1.
Financial Implications: ☒There is no financial impact associated with this item. There is no financial impact associated with
this presentation; the financial impact of any action the Council considers will be included at the time
of consideration.
Approvals: ☐City Attorney ☐Director of Finance ☒City Manager
Associated Information:
12/7/21
Agenda Item: 3a
CITY COUNCIL AGENDA
Private Development
Infrastructure
Funding Alternatives
Special Districts
Special
Districts
Municipal Utility District (MUD)
Public Improvement District (PID)
MUD Establishes a mechanism to finance public infrastructure to servepropertieswithinthedistrictthroughtheissuanceofgeneralobligationorrevenuebonds,or a combination thereof,the payments of which arederivedfromadvaloremtaxesagainstpropertieslocatedwithinthedistrict.
PID
Establishes a mechanism to finance improvement projects,including butnotlimitedtowater,wastewater and drainage facilities,the initial paymentofwhichmaybethroughtheissuanceofgeneralobligationorrevenuebonds,or a combination thereof,or directly from a special improvementdistrictfundestablishedbythecitywithgeneraltaxrevenues,the paymentsorrepaymentsofwhichmaybederivedfromspecialassessmentsagainstbenefitedproperties.
Method of
Creation
MUD:Through special act of the Legislature,or by order of the TexasCommissiononEnvironmentalQuality(TCEQ)upon petition by theownersofamajorityofthevalueofthelandintheproposeddistrict.AMUDmaynotbecreatedwithinthecorporatelimitsortheextraterritorialjurisdictionofamunicipalitywithoutconsentofthemunicipality.
PID:By resolution of the city council,upon petition of the owners oftaxablerealpropertythatwouldbesubjecttoanassessment.
Management
of Special
Districts
MUD:Governed by an elected board of directors.Subject to many lawsapplicabletomunicipalities,or similar,such as Open Meetings and OpenRecordsacts,Public Funds Investment Act,annual fiscal auditingrequirements,competitive bidding,etc.Elections held in compliance withTexasElectionCode.Board of directors may sue and be sued,exercise thepowerofeminentdomain,issue permits,and annex or exclude propertyfromitsboundaries.
PID:Governed by the city council,but may appoint an “advisory body”todevelopandrecommendtheimprovementplan.However,the finaldeterminationregardingadvisabilityandnatureoftheimprovements,theestimatedcosts,boundaries of the district,and the method of assessmentandapportionmentofcostsaremadebycitycouncil.
Basics of the
Financing
MUD:Developer creates the district,and advances funds to constructwater,wastewater and/or drainage facilities.Once the assessed valuation ofthedistrictreachesafeasiblelevel,the district issues general obligation orcombinationtaxandrevenuebonds,or other authorized evidences ofindebtedness,and purchases the newly constructed facilities from thedeveloper.Some limitations do exist on reimbursement,but for the mostpartifthedistrictiseconomicallyviable,the developer will recover hiscosts.Ad valorem taxes,or revenues from the water/sewer system,are usedtopaydebtserviceonthebondsorotherevidencesofindebtedness.
PID:Developer or city fronts the costs for constructing the improvements.City may issue bonds for this purpose.A special assessment is leviedagainstpropertiesthatarebenefitedfromtheimprovements,in proportiontothebenefitreceived,and proceeds from the assessments are used toreimbursethedeveloperorcity,as applicable.
Pros
MUD:Traditional scheme.Developers are familiar with the procedures,limitations,and practicalities.Places no management responsibilities oncitystaff.
PID:Scope of authorized improvements is vast;good procedures in placetomakestudieddecisionregardingfeasibilityofimprovementprojects.Much public participation provided for.Hearings require consideration ofallaspectsofproject,including basis for determining how to value benefits.PID’s have an expiration date.
Cons
MUD:Creates another layer of government,with taxing authority.MUD’shavenoexpirationdate.Leaves the city without the absolute control overcertaindevelopmentandgovernmentissues.As with the city,the districtmaynotcontractawayitslegislativeauthority,or legislative discretion,inmanyareas.Citizens are never happy with an additional assessment.
PID:Very cumbersome procedure to establish a PID,and to establishassessments.City staff are tasked with complying with all legislativerequirements.Citizens are never happy with an assessment.The assessmentcannotexceedthevalueoftheassessment.Also,even though anassessmentisasuperiorlien,a homestead cannot be foreclosed on tosatisfyanassessment.
Questions
Agenda Item #4a
Item/Subject: Consider the appointments to City of Huntsville Boards, Commissions, and Committee
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, Commisisions or Committees: Cemetery Advisory Board. The positions on these
Boards and Committees are either expired 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
12/06/2021
Agenda Item: 4a
CITY COUNCIL AGENDA
BOARDS & COMMISIONS SEATS BOARD MEMBER TERM EXPIRES
Cemetary Advisory Board 7 seats
2-year terms #1 Greg Smith 8/31/2023
#5 Vacant
#6 Vacant
#8 Vacant