9-15-2020 packet_202009110703135828
Daiquiri Beebe, Ward 1
Russell Humphrey, Ward 2
Blake Irving, Ward 3
Mayor Pro Tem Joe P. Rodriquez, Ward 4
CITY OF HUNTSVILLE, TEXAS
Andy Brauninger, Mayor
Bert Lyle, Position 1 At-Large
Dee Howard Mullins, Position 2 At-Large
Clyde D. Loll, Position 3 At-Large
Mari Montgomery, Position 4 At-Large
HUNTSVILLE CITY COUNCIL AGENDA
TUESDAY, SEPTEMBER 15, 2020
REGULAR SESSION 6:00 P.M. IN CITY COUNCIL CHAMBERS,
HUNTSVILLE CITY HALL, 1212 AVENUE M, HUNTSVILLE, TEXAS 77340
City hall will implement 6-foot social distancing for those in attendance. The City reserves the right to take temperatures of those
wanting to attend and requires attendees to wear face masks. The City reserves the right to deny access to the meeting because of
the above requirements for the safety of its citizens. For those who cannot attend because of the social distancing requirements or
for the reasons listed above, the meeting will be broadcast live on the City website at www.HuntsvilleTX.gov/Meetings or on
Facebook. The meeting will be recorded, and such recordings will be made available on the City website at www.HuntsvilleTX.gov.
Persons with disabilities who plan to attend this meeting and who 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
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.
1. PUBLIC HEARING on the Tax Year 2020 (FY 20-21) Tax Rate for the City.
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. Approve the minutes of the City Council meeting held on September 1, 2020. [Brenda Poe, City Secretary]
b. Move to adopt Resolution 2020-28 designating The Huntsville Item as the official newspaper for the City
of Huntsville through Fiscal Year 2021-2022, commencing October 1, 2020. [Brenda Poe, City Secretary]
c. Consider adoption of Ordinance 2020-45 to amend the budget for FY 19-20 and/or CIP Project budgets.
[Steve Ritter, Finance Director]
d. Consider authorizing the City Manager to approve a contract with TML MultiState Intergovernmental
Employee Benefits Pool (IEBP) for health insurance administrative fees and fully insured dental premiums.
[Julie O’Connell, Human Resources Director]
3. STATUTORY AGENDA
a. Consider approval of Ordinance 2020-43 to adopt the Fiscal Year 2020-2021 Budget. [Steve Ritter, Finance
Director]
b. Consider approval of Ordinance 2020-44 to adopt the Tax Rate and levying taxes for the City of Huntsville
for the Fiscal Year 2020-2021. [Steve Ritter, Finance Director]
c. Consider ratifying the increased property tax revenues of $298,050 reflected in the Fiscal Year 2020-2021
Budget as adopted. [Steve Ritter, Finance Director]
4. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY
a. Consider approving nominees for City boards, committees, and commissions. [Andy Brauninger, Mayor]
b. Consider amending the Schedule of Fees and Charges for the FY 2020-2021 Budget to change the multiplier
on outside city limit water rates from 1.75 to 1.50 and adopt Ordinance 2020-37. [Joe Rodriquez, Mayor
Pro Tem]
c. Consider authorizing City Manager/designee to amend the City of Huntsville Policy and Procedures
Manual- Section 7.01 to take affect starting October 1, 2020. Making June 19th an official City Holiday
and giving Veterans Day off to all Veterans employed with the City of Huntsville. [Blake Irving,
Councilmember Ward 3]
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 submitted.
6. MEDIA INQUIRIES RELATED TO MATTERS ON THE AGENDA
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.)
8. EXECUTIVE SESSION
a. City Council will convene in closed session as authorized by Texas Government Code, Chapter 551, Section
551.071 – consultation with legal counsel on a matter in which the duty of the attorney to the governmental
body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts
with chapter 551 relating to and for the purpose of attorney-client communications concerning the City of
Huntsville New Police Headquarters and Fire Station #2/Fire Administration Building Project.
b. City Council will convene in closed session as authorized by Texas Government Code, Chapter 551, Section
551.072 – deliberation regarding purchase, exchange, lease or value of real property on Martin Luther King
Drive.
c. City Council will convene in closed session as authorized by Texas Government Code, Chapter 551, Section
551.074 – personnel matters regarding the appointment, employment, evaluation, reassignment, duties,
discipline, or dismissal of a public officer or employee, concerning City Manager.
9. RECONVENE
Take action on items discussed in executive session, if needed.
ADJOURNMENT
*If, during the course of the meeting and discussion of any items covered by this notice, City Council determines that a Closed or Executive
session of the Council is required, then such closed meeting will be held as authorized by Texas Government Code, Chapter 551, Section
551.071 – consultation with counsel on legal matters; 551.072 – deliberation regarding purchase, exchange, lease or value of real property;
551.073 – deliberation regarding a prospective gift; 551.074 – personnel matters regarding the appointment, employment, evaluation,
reassignment, duties, discipline, or dismissal of a public officer or employee; 551.076 – implementation of security personnel or devices;
551.087 – deliberation regarding economic development negotiation; Sec. 551.089 - deliberation regarding security devices or security audits;
and/or other matters as authorized under the Texas Government Code. If a Closed or Executive session is held in accordance with the Texas
Government Code as set out above, the City Council will reconvene in Open Session to take action, if necessary, on the items addressed
during Executive Session.
CERTIFICATE
I, Brenda Poe, City Secretary, do hereby certify that a copy of the September 15, 2020 City Council agenda was posted on the City
Hall bulletin board, a place convenient and readily accessible to the general public at all times, and to the City’s website,
www.HuntsvilleTX.gov, in compliance with Chapter 551, Texas Government Code.
DATE OF POSTING: 9/10/2020
TIME OF POSTING: 7:15 am ____________________________
TAKEN DOWN: Brenda Poe, City Secretary
Brenda Poe
Agenda Item #1
Item/Subject: Public Hearing on the Tax Year 2020 (FY 20-21) Tax Rate for the City.
Initiating Department/Presenter: Finance
Presenter: Steve Ritter – Finance Director
Recommended Motion: No action to be taken – Public Hearing only.
Strategic Initiative: Goal #5 - Finance - Provide a sustainable, efficient and fiscally sound government
through conservative fiscal practices and resource management.
Discussion: State statutes, Sec. 26.06 of the Texas Tax Code requires cities to hold a public hearing on
the Tax Rate. At the August 4, 2020 meeting Council approved a proposed tax rate of $0.3341 as a
maximum rate that could be adopted for FY 20-21. The actual tax rate in the FY 20-21 Budget and the
rate to be adopted in this evening’s meeting is the “No-New-Revenue” rate for the City of $0.3062 per
$100 valuation. This Public Hearing will meet all requirements of the Texas Tax Code. Staff has
complied with all Tax Hearing notice postings and publishings for this evening’s Public Hearing.
Previous Council Action: No previous Council action
Financial Implications:
☒There is no financial impact associated with this item. No action to be taken by Council on this
item (Tax Rate Public Hearing).
Approvals: ☐City Attorney ☒Director of Finance ☒City Manager
9/15/2020
Agenda Item: 1
CITY COUNCIL AGENDA
MINUTES FROM THE HUNTSVILLE CITY COUNCIL REGULAR MEETING HELD ON THE 1st
DAY OF SEPTEMBER 2020, 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 regular session with the following:
COUNCILMEMBERS PRESENT: Daiquiri Beebe, Blake Irving, Russell Humphrey, Dee Howard Mullins,
Bert Lyle, Joe P. Rodriquez, Andy Brauninger, Clyde D. Loll, Mari Montgomery
COUNCILMEMBERS ABSENT: None
OFFICERS PRESENT: Brenda Poe, City Secretary; 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 Mullins gave the invocation and Mayor Brauninger led the pledges.
PROCLAMATION –
− Huntsville Texas Pride Day
− Emergency Preparedness Month.
1. 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. Approve the minutes of the City Council meeting held on August 18 and 25, 2020. [Brenda
Poe, City Secretary]
b. Consider authorizing the City Manager to execute Amendment B to the agreement with RPS
Infrastructure, Inc. for professional engineering services for IH-45 Segment 2A Utility
Relocation Design Project #18-03-01. [Y.S. “Ram” Ramachandra, City Engineer]
Mayor Pro Tem Rodriquez made a motion to approve the consent agenda; the motion was seconded by
Councilmember Loll. The motion was adopted, 9-0.
2. STATUTORY AGENDA
a. Consider authorizing the City Manager to enter into a contract with Kendig Keast Collaborative
for the update of the Huntsville Horizon Comprehensive Plan. [Kevin Byal, Director of
Development Services/Building Official]
Councilmember Beebe made a motion to authorize the City Manager to enter into a contract with Kendig
Keast Collaborative for the update of the Huntsville Horizon Comprehensive Plan in the amount of
$175,000; the motion was seconded by Mayor Pro Tem Rodriquez. The motion was adopted, 9-0.
b. Consider the award of a fiber optic line installation project to Network Cabling Services, Inc
(NCS) for the installation of conduit and fiber optic line from Smith Hill Road to the new Police
Station building on FM 2821. [Bill Wavra, IT Director, and Y.S. “Ram” Ramachandra, City
Engineer]
Councilmember Howard made a motion to award the fiber installation project to Network Cabling
Services, Inc. (NCS) in the amount of $120,601.48 for the installation of conduit and fiber from Smith
Hill Road to the new Police Station building on FM 2821; the motion was seconded by Councilmember
Beebe and Irving. The motion was adopted, 9-0.
3. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY
a. Consider approving nominees for City boards, committees, and commissions. [Andy Brauninger,
Mayor]
The Mayor moved his nominations as presented. The motion was adopted, 9-0.
Huntsville Cemetery Advisory Board –
James Patton, Joe Boaz, and Donna Coffen
Huntsville Housing Authority – Sally Dowis and
Vera Demman, Resident Commissioner
Parks and Recreation Advisory Board –
Nelson Amaya, Debra Jones, & George Perry
Planning Commission –
Woody Woods, Jr.
Board of Adjustments –
Cheryl Reader and David Zuniga
Hotel Occupancy Tax (HOT) Board –
Deanna Hightower and Heather Robbins
Main Street Advisory Board –
Sandra Gray and Cheryl Spencer
Walker County Public Safety
Communications Center - Craig Schlicher
b. Consider approving Decision Packages for the 2020-21 Budget and discussion of adoption
process. [Steve Ritter, Finance Director]
Councilmember Montgomery made a motion to approve the Decision Packages listed as items 3b (1-6)
on the City Council agenda; the motion was seconded by Councilmember Lyle. The motion was adopted,
9-0.
4. 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.
Mayor Brauninger allowed Armatus Reintegration Program Rick and Kris Pritchard to present about local
efforts to rehabilitate incarcerated veterans.
5. MEDIA INQUIRIES RELATED TO MATTERS ON THE AGENDA
None
6. 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.)
The Mayor talked about Home Sweet Huntsville, when everybody counts, everybody wins. Register to vote
by October 5th. Complete your 2020 Census online or by mail to avoid the knock on your door. Funding for
the City is based on the Census. We need you to be counted.
Councilmember Montgomery announced the City of Huntsville, Walker County, Huntsville Memorial
Hospital & the Walker County Hospital District have joined together to offer residents FREE drive-thru
COVID testing MON-FRI 4-8pm & SAT-SUN 8am-noon at 125 Medical Park Drive. Registration requested
but not required by calling 936-293-4619.
Mayor Pro Tem Rodriquez reminded citizens that the Cleaner, Greener Huntsville is back with the quarterly
free dumpsters being place on Sept. 14 at 7 a.m. and being available to the residents of the City under 4 p.m.
Saturday, Sept. 19. Please remember to follow the rules and place all trash inside the dumpster. For more
information, call 936-294-5712.
Councilmember Lyle spoke about the annual Electronics Recycling Day will take place from 9 am to noon
Saturday, Sept. 12 at the Recycling Center located at 590 Interstate 45 North. For a full list of items accepted,
please visit HuntsvilleTX.gov or find the event information on our Facebook page.
Councilmember Beebe introduced a new video to promote tourism in Huntsville. While travel has been down
due to the COVID-19 pandemic, the Economic Development Department has been working with a local
production company to reintroduce Huntsville as a travel destination. The video showcases historic
downtown, Sam Houston State University, family-friendly annual events, cultural arts and museums, and
outdoor activities. It also features the Sam Houston Wine Trail, a new tourist attraction that includes wineries
in Huntsville and Walker County. The Economic Development Department will utilize the video for online
marketing, face-to-face marketing at the Visitor's Center, and even feature clips at future Sam Houston State
athletic events as we continue to put Huntsville First.
7. EXECUTIVE SESSION
a. City Council will convene in closed session as authorized by Texas Government Code, Chapter
551, Section 551.074 – personnel matters regarding the appointment, employment, evaluation,
reassignment, duties, discipline, or dismissal of a public officer or employee, concerning City
Secretary Brenda Poe.
The Council convened into Executive Session at 7:09 p.m.
8. RECONVENE
The Council reconvened at 8:03 p.m. Councilmember Beebe made a motion to authorize the City
Secretary to hire a Deputy City Secretary and to amend the contract to receive a market adjustment on
January 1, 2021; the motion was seconded by Councilmember Irving and Lyle. The motion carried, 9-0.
ADJOURNMENT
Mayor Brauninger adjourned the meeting without objection at 8:04 pm
Brenda Poe, City Secretary
ATTEST: CITY OF HUNTSVILLE
________________________________ ________________________________
Brenda Poe, City Secretary Andy Brauninger, Mayor
Agenda Item #2b
Item/Subject: Move to adopt Resolution 2020-28 designating The Huntsville Item as the official
newspaper for the City of Huntsville through Fiscal Year 2021-2022, commencing October 1, 2020.
Initiating Department/Presenter: City Secretary
Presenter: Brenda Poe, City Secretary
Recommended Motion: Move to adopt Resolution 2020-28 designating The Huntsville Item as the
official newspaper for the City of Huntsville through Fiscal Year 2021-2022, commencing October 1,
2020.
Strategic Initiative: Goal #2 - Communications - Provide public information outreach efforts that inform
the public of City operations, accomplishments and policies and allows for citizens input on matters of
Council policy.
Discussion: Pursuant to City Charter Section 14.05 and Texas Government Code, Title 10, Subtitle B,
Chapter 2051, the City shall annually select an official newspaper to publish legal notices on its behalf.
Chapter 2051 further requires that each of the following conditions must be met by a newspaper to be
eligible to serve as an official newspaper for publishing legal notices on behalf of a governmental entity:
1) Must devote not less than 25 percent of its total column lineage to general interest items;
2) Must be published at least once per week;
3) Must be entered as second-class postal matter in the county where published; and
4) Must have been published regularly and continuously for at least 12 months before the
governmental entity or representative publishes notice.
Invitation to Bid (ITB) 07-20 was developed and issued in August 2020 for a two year (2) term, with
specifications requiring that respondents not only state their legal rate for publication, but also
affirming in writing their local newspaper’s compliance with the requirements stated above, as well as
that their legal rate quoted is their lowest published rate for classified advertising. The sole response
was provided by the Huntsville Item considered by staff for award. For the reasons stated herein, it is
staff recommendation that The Huntsville Item be designated as the City of Huntsville’s official
newspaper for Fiscal Year 2021-2022, with a legal notice publication rate of $11.75 per column inch.
This pricing is identical to that paid by the City since 2017.
Financial Implications:
☒Item is budgeted: Various departmental G/L accounts In the amount of $ 15,500
Approvals: ☐City Attorney ☒Director of Finance ☒City Manager
Associated Information:
• Resolution 2020-28
9/15/2020
Agenda Item: 2b
CITY COUNCIL AGENDA
RESOLUTION NO. 2020-28
A RESOLUTION OF THE CITY OF HUNTSVILLE, TEXAS DESIGNATING AN
OFFICIAL NEWSPAPER FOR THE CITY OF HUNTSVILLE FOR PERIOD
COMMENCING OCTOBER 1, 2020 AND CONTINUING THROUGH SEPTEMBER 30,
2022.
WHEREAS, the City Council finds that The Huntsville Item is a paper of general circulation
within the City of Huntsville; and
WHEREAS, the City Council finds that The Huntsville Item:
(1) devotes not less than 25% of its total column lineage to general interest items;
(2) is published at least once each week;
(3) is entered as 2nd class postal matter in the county where published; and
(4) has been published regularly and continuously for at least 12 months before the
governmental entity or representative publishes notice; and
WHEREAS, the City Council finds that The Huntsville Item is a publication that meets all of the
criteria legally required of an officially designated newspaper for the City of
Huntsville.
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE
CITY OF HUNTSVILLE, TEXAS:
That:
(1) The Huntsville Item is designated as the official newspaper for the City of Huntsville for
period commencing October 1, 2020 and continuing through September 30, 2022.
(2) The Mayor is authorized and directed to execute a contract with The Huntsville Item
establishing the applicable rates for publication of City notices.
(3) Until September 30, 2022, the City of Huntsville shall continue to publish in the Huntsville
Item each ordinance, notice or other matter required to be published by law.
(4) This resolution is effective immediately upon passage.
PASSED, ADOPTED, AND APPROVED this 15th day of September 2020.
APPROVED:
Andy Brauninger, Mayor
ATTEST: APPROVED AS TO FORM:
Brenda Poe, City Secretary Leonard Schneider, City Attorney
Agenda Item #2c
Item/Subject: Consider adoption of Ordinance 2020-45 to amend the budget for FY 19-20 and/or
CIP Project budgets.
Initiating Department/Presenter: Finance
Presenter: Steve Ritter, Finance Director
Recommended Motion: Move to adopt Ordinance 2020-45 to amend the budget for FY 19-20 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 is provided in the attachment, Exhibit A, to the Ordinance. The
Budget Amendment was presented to the Finance Committee at their September 15, 2020 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 2020-45, page 2
• Exhibit A (list of budget amendments), page 3
9/15/2020
Agenda Item: 2c
CITY COUNCIL AGENDA
Agenda Item #2c
ORDINANCE NO. 2020-45
AN ORDINANCE OF THE CITY OF HUNTSVILLE, TEXAS, AMENDING THE 2019-
2020 ANNUAL BUDGET AND CAPITAL IMPROVEMENTS PROJECTS (CIP)
BUDGETS, ORDINANCE NO. 2019-52 TO AMEND ADOPTED EXPENDITURES OF
THE BUDGET; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the 2019-2020 Annual Budget and CIP Budgets were adopted by Ordinance 2019-52 on
September 17, 2019;
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 2019 – 2020
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 2019 – 2020 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 2019 – 2020 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 15th day of September 2020.
THE CITY OF HUNTSVILLE, TEXAS
__________________________________
Andy Brauninger, Mayor
ATTEST: APPROVED AS TO FORM:
____________________________ _____________________________________
Brenda Poe, City Secretary Leonard Schneider, City Attorney
Agenda Item #2c
Exhibit A
Budget Amendments FY 19-20
September 15, 2020 (Fin Comm 9/15/20)
Increase: General Fund - COVID-19 TDEM CFR $338,952
Increase: General Fund - Grant Revenue $338,952
Explanation:
The City was allocated approximately $2.3M dollars of Coronavirus Relief
Fund (CRF) grant monies back in the late May to early June timeframe.
The City received $455,983 of CRF monies through the Texas Department
of Emergency Management (TDEM) in mid-June. These monies are not
considered earned until the City incurs eligible expenses. The City has
partnered with the Walker County Hospital District/Huntsville Memorial
Hospital to provide COVID-19 testing for residents of the City and
partnered with the Good Shepherd Mission to distribute Personal
Protection Equipment (PPE) to citizens of Huntsville. The first three weeks
of providing COVID-19 tests resulted in roughly 600 residents of the City
getting tested at the hospital site(s). The cost per the agreement with the
Hospital District/Hospital for each test was $250. This calculates to about
$150,000 for the first three weeks of testing. Projecting similar numbers
of testing for the 3 weeks remaining in September calculates to an
estimated cost of another $150,000. Allowing for a little buffer for
numbers of tests being a little greater in September we are requesting
$315,000 as the testing amount for this budget amendment. For providing
PPE for city residents City staff purchased masks, hand cleaner,
disinfectant, and spray bottles for a cost of $23,952. This amount added to
the $315,000 for testing equals the $338,952 amount being requested in
this Budget Amendment.
Increase: PEB Trust Fund - Payments to RHS $12,351
increase to Exp acct coming from revenues already budgeted $ -
Explanation:
The "Payments to RHS" expenditure account in the PEB Trust Fund was
budgeted at $20,000 for FY 19-20 based on history. Actual payments to
RHS for people retiring in FY 19-20 is $32,351. As such, we need an
additional $12,351 in the budgeted account. The amount budgeted for
revenue in the fund was $43,000. Actual dividends earned in the fund for
the fiscal year have been $117,792. Total value of the assets in the PEB
Trust as of the middle of September was $4,779,717. The PEB Trust was
created in 2010 to provide assets to help with retiree health insurance
costs and to help lessen the City's "Other Post-Employment Benefits"
(OPEB) liability that is included in the City's annual audited Comprehensive
Annual Financial Report (CAFR). Original funding of the PEB Trust was in
fiscal years 2011, 2012, and 2013 for a total of $2,195,000 of City monies
placed in the trust.
Agenda Item #2d
Item/Subject: Consider authorizing the City Manager to approve a contract with TML MultiState
Intergovernmental Employee Benefits Pool (IEBP) for health insurance administrative fees and fully
insured dental premiums.
Initiating Department/Presenter: Human Resources
Presenter: Julie O’Connell, Human Resources Director
Recommended Motion: Move to authorize the City Manager to approve a contract with TML
MultiState Intergovernmental Employee Benefits Pool (IEBP) for health insurance administrative fees
and fully insured dental premiums.
Strategic Initiative: Goal #6 - Finance - Provide a sustainable, efficient and fiscally sound government
through conservative fiscal practices and resource management.
Discussion: The City currently utilizes TMLIEBP (referred to as TML Health) to administer our self-
insured health insurance program. Results from an RFP for health administration were received this
past July. These results were reviewed during a workshop with the City Council in August, and TML
Health was recommended by our benefits consultant and staff as the best overall value for the City.
This is a one-year contract ending December 31, 2021 for medical/RX claims administration and a fully
insured dental plan. The rate for medical/RX claims administration is $38.62 per employee/retiree per
month, or approximately $130,000 annually (depending on the number of employees/retirees on the
plan). The premium cost to the City for the fully insured dental plan is approximately $140,000 annually.
This includes administration and paid claims. Listed below are some of the major services provided by
TML Health related to the administration of our health insurance program:
• Access to the United Healthcare provider network (52% to 55% discount on medical claims)
• Review, process and pay claims while ensuring compliance with our Plan Document, which
outlines what is covered or not covered by the plan
• Manages the prescription drug program, dental plan, and Post-65 retirement plan
• Provides health coaches and wellness programs to employees and retirees on a variety of topics
• Manages our Flexible Spending Account program (pre-tax debit card for medical expenses)
• Manages high deductible health plan and associated banking
• Provides billing services for stop loss and life insurance
• Pursues subrogation of claims (recovery of claim expenses through another party, which may
result in cost savings to our plan)
• Manages Tela-doc (tele-medicine option) agreement, claims and service
• Manages and added new agreement effective 1/1/20 with Dental Network of America which
should result in savings to the City and our employees
Previous Council Action: The City Council approved the current contract on November 19, 2019.
9/15/20
Agenda Item: 2d
CITY COUNCIL AGENDA
Agenda Item #2d
Financial Implications:
☒Item is budgeted: 302-1302-78984 In the amount of $458,657, which includes
other administrative fees, such as stop loss.
Approvals: ☐City Attorney ☐Director of Finance ☒City Manager
Item/Subject: Consider adopting Ordinance 2020-43 to adopt the Fiscal Year 2020-2021 Budget.
Initiating Department/Presenter: Finance
Presenter: Steve Ritter – Finance Director
Recommended Motion: Move to approve Ordinance 2020-43 to adopt the Fiscal Year 2020 – 2021
Budget with all policies, fees, rates, and provisions as referenced therein.
Strategic Initiative: Goal #6 - Finance - Provide a sustainable, efficient and fiscally sound government
through conservative fiscal practices and resource management.
Discussion: This Fiscal Year 2020 – 2021 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 14th,
a presentation to Council on July 7th, communication with the Finance Committee on Fiscal and
Budgetary Policies, and a Public Hearing on the Budget on September 14th. Also, Decision Packages
were presented for approval and approved at the September 1, 2020 meeting. This budget has been
prepared using a Property Tax Rate of $0.3062.
Previous Council Action: None
Financial Implications:
☒Item is budgeted: Fiscal Year 2020 – 2021 Budgets for all City Funds
Approvals: ☐City Attorney ☒Director of Finance ☒City Manager
Associated Information:
• Ordinance 2020-43
• Required State Truth in Taxation statement
• Exhibit A – FY 20- 21 Fund Revenues, Expenditures, and Projected Balances
• Exhibit A1 – FY 20-21 CIP Projects
• Exhibit B - FY 20-21 Fiscal and Budgetary Policies
• Exhibit C - FY 20-21 Investment and Banking Policies
• Exhibit D - FY 20-21 Fee Schedule
• Exhibit E - Tax Rate Calculation Worksheet (required by SB 2)
9/15/2020
Agenda Item: 3a
CITY COUNCIL AGENDA
ORDINANCE NO. 2020-43
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, 2020, THROUGH SEPTEMBER
30, 2021; 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 2020-2021 [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 2020
- 2021 budget [Texas Local Government Code § 102.0065]; and
WHEREAS the budget for the year October 1, 2020, through September 30, 2021, 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, 2020,
through September 30, 2021.
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 2020-2021 in the Capital Improvements budget portion of
the 2020-2021 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 2020-2021 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 15th day of September 2020.
THE CITY OF HUNTSVILLE, TEXAS
Andy Brauninger, Mayor
ATTEST: APPROVED AS TO FORM:
Brenda Poe, City Secretary Leonard Schneider, City Attorney
City of Huntsville, Texas
Annual Operating Budget for Fiscal Year 2020-2021
This budget will raise more total revenue from property taxes than last
year’s budget by $298,050 (4.48%), and of that amount $254,704
(3.83%) is property tax revenue to be raised from new property added
to the tax roll this year.
Record vote on adopting the FY 20-21 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
Clyde D. Loll Position 3 at Large
Mari Montgomery Position 4 at Large
Property Tax Rate Information:
Fiscal Yr 20-21
Fiscal Yr 19-20
Tax Rate adopted $0.3062 $0.3148
No-New-Revenue Tax Rate $0.3062 $0.3048
No-New-Revenue M&O Tax Rate $0.2319 $0.2419
Debt Rate $0.0663 $0.0629
Voter-Approval Tax Rate $0.3342 $0.3308
City Debt Obligations secured by property taxes $46,520,000
Notice as required under Texas Local Government Code, Sec. 102.005 (b)
This budget will raise more total property taxes than last year’s
budget by $298,050 (4.48%), and of that amount $254,704
(3.83%) is tax revenue to be raised from new property added to
the tax roll this year.
Exhibit ACity of HuntsvilleFund Revenues, Expenditures and Projected BalancesFY 2020 - 2021FY 2020-2021Fund Fund NameEstimated 09/30/20 Unallocated ReserveRevenuesAdminReimb InTrans InTotalRevenueExpendituresAdminReimb OutTrans OutTransferto Cap ExpOne Time EquityTotal ExpEstimated 09/30/21 Unallocated ReserveFund Name101 General Fund 11,783,000 19,463,791 5,126,128 1,431,099 26,021,018 24,083,993 1,077,025 860,000 26,021,018 1,065,725 27,086,743 10,717,275Debt Service116 Debt Service Fund 220,220 1,497,550 - 1,079,250 2,576,800 2,549,342 - - - 2,549,342 - 2,549,342 247,678Enterprise220 Utility Fund8,283,500 30,098,545 45,982 - 30,144,527 18,051,408 4,360,437 2,221,625 4,764,264 29,397,734 1,094,538 30,492,2727,935,755224 Solid Waste Fund 2,386,400 6,141,066 - - 6,141,066 4,443,219 759,673 624,992 5,827,884 220,324 6,048,208 2,479,258Internal Service302 Medical Insurance Fund 2,609,934 4,111,910 - 4,111,910 4,428,276 - - - 4,428,276 4,428,276 2,293,568306 Capital Equipment Fund 4,858,518 10,000 - 968,566 978,566 1,955,633 - - - 1,955,633 1,955,633 3,881,451309 Computer Equip. Replacement Fund 489,165 1,000 - 252,406 253,406 309,920 - - - 309,920 309,920 432,651Special Revenue601 Court Security SRF 58,202 27,00027,000 - - 26,110 - 26,110 26,110 59,092602 Court Technology SRF 101,484 35,750 - - 35,750 47,000 -- - 47,000 47,000 90,234609 Airport SRF31,379 137,250 - - 137,250 133,150 - - - 133,150 133,150 35,479610 Library SRF94,476 9,900 - - 9,900 - - - - - - - 104,376611 Police Seizure & Forfeiture SRF 169,066 1,000 - 1,000 96,076 - - - 96,076 - 96,076 73,990612 PD School Resource Officer SRF 171,428 595,002 - 152,000 747,002 724,243 - 19,331 - 743,574 10,007 753,581 164,849613 PD Fed Equitable Sharing Fds SRF 79,275 175 - - 175 60,035 - - - 60,035 60,035 19,415614 Police Grants SRF 31,755- 31,755619 LEOSE SRF30,630 200200 26,00026,000 26,000 4,830625 Huntsville Beautification/KHB 18,912 100 - - 100 - - - - -- - 19,012630 TIRZ #1 Fund40,882 286,850 - - 286,850 286,700 - - - 286,700 - 286,700 41,032665 Hotel/Motel Tax - Statue Contrib 69,328 2,500 - - 2,500 800 - - - 800 - 800 71,028Grants6101 Library Grants SRF 5,353 - - - - -- - - -- - 5,353Hotel/Motel Tax618 Arts & Visitor Center SRF 93,146 89,100 - 94,954 184,054 189,581 - - - 189,581 1,640 191,221 85,979663 H/M Tax- Tourism & Visitors Cntr 673,295 546,500 -546,500 553,276 51,999 7,193 - 612,468 17,884 630,352 589,443Endowment402 PEB Trust - Medical Fund 4,115,869 50,000 - - 50,000 20,000 - - 20,000 - 20,000 4,145,869418 Library Endowment Fund 118,415 400 - - 400 - - - - - - - 118,815461 Oakwood Cemetery Endowment Fund 385,153 2,000 - - 2,000 - - 2,000 - 2,000 2,000 385,153036,918,785 63,107,589 5,172,110 3,978,275 72,257,974 57,958,652 5,172,109 3,978,276 5,624,264 72,733,301 2,410,118 75,143,4198/26/2020
Exhibit A1 FY 2020-2021
Utility CIP Amount Funding Sources
Automated Water Meter Replacement $ 125,000 Utility Fund
Economic Development Participation - Water $ 50,000 Utility Fund
Water line Relocation for IH-45 Segment 2B Widening $ 100,000 Utility Fund
Wastewater line Relocation for IH-45 Segment 2B Widening $ 100,000 Utility Fund
Economic Development Participation - Wastewater $ 50,000 Utility Fund
Sanitary Sewwer Replacements $ 780,000 Utility Fund
N.B. Davidson Wastewater Treatment replacement design $ 879,264 Utility Fund
Furniture, Fixtures and Equipment for City Hall & Service Ctr $ 770,000 Utility Fund
Robinson Way / 25th Street W/L Rehabilitation - Approx. 2400 LF $ 360,000 Utility Fund
Cline Street (FM1374 to Old Hou Road) - Replace 6" - Approx 2800 LF $ 520,000 Utility Fund
Ave I to 17th/Ave I Intersection - Replace / Relocate 8" waterline to 12"- Approx 2400 LF $ 500,000 Utility Fund
Hayman (Cline to Powell) - Replace 6" waterline - Approx 1200 LF $ 180,000 Utility Fund
12" WL Replacement Between Ave D and SH 30 East - Approx 700 LF $ 150,000 Utility Fund
Hazel Avenue Waterline Replacement - Approx 1000 LF $ 200,000 Utility Fund
TOTAL - Utility Fund CIP 4,764,264$
General - CIP Amount Funding Sources
Skate Park 75,000$ General Fund
Lighting Along the Trail - Eastham Thomason Park 75,000$ General Fund
Airport CIP - Taxiway A Mid-Segment 200,000$ General Fund
Miscellaneous Sidewalk Improvements 50,000$ General Fund
Furniture, Fixtures and Equipment for City Hall & Service Ctr 460,000$ General Fund
Total General CIP $ 860,000
Total Sources Summary Amount
Utility Fund Contributions 4,764,264$
General Fund Contributions 860,000$
20-21 Total Sources of Funds 5,624,264$
City of Huntsville
FY 2020-2021 Capital Funding Additions and Sources
Exhibit B FY 20-21
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 20-21
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 20-21
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 20-21
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 20-21
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.
Exhibit B FY 20-21
6
D. BALANCED BUDGET. The budget shall be balanced using a combination of current
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, 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
Exhibit B FY 20-21
7
used to support on-going operating expenditures. This reserve is defined as unreserved
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 20-21
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 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 20-21
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 20-21
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 20-21
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 20-21
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 20-21
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 20-21
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 20-21
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 20-21
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 20-21
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 coverages;
D. Oversight of budget and finances
Exhibit C FY 20-21
CITY OF HUNTSVILLE, TEXAS
INVESTMENT & BANKING
POLICIES
10/1/2017
(Exhibit C) (FY 20-21)
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
Exhibit C FY 20-21
1
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. The City will
comply 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 Finance Director, designated as Investment Officer 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 Officer 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.
(Exhibit C) (FY 20-21)
2
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 shall attend investment training that includes education in
investment controls, security risks, strategy risks, market risks, diversification of investment
portfolio and general compliance with state law. 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.
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
(Exhibit C) (FY 20-21)
3
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 20-21)
4
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 Officer, 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 20-21)
5
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, 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
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.
(Exhibit C) (FY 20-21)
6
XV. INTERNAL CONTROL/COMPLIANCE AUDIT
A system of internal controls shall be established. As part of the City’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
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
(Exhibit C) (FY 20-21)
7
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.
The following are not authorized investments under this section:
a. obligations whose payment represents the coupon payments on the
outstanding principal balance of the underlying mortgage-backed security
collateral and pays no principal;
b. obligations whose payment represents the principal stream of cash flow
from the underlying mortgage-backed security collateral and bears no
interest;
c. collateralized mortgage obligations that have a stated final maturity date
greater than 10 years; and
d. 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, a savings bank or credit
union that are:
a. guaranteed or insured by the Federal Deposit Insurance Corporation, the
National Credit Union Share Insurance Fund, 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
Investment Act (PFIA).
B. Authorized investments requiring prior approval of the Finance Committee:
1. Banker’s Acceptances
A bankers acceptance is an authorized investment if the banker’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.
2. 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
(Exhibit C) (FY 20-21)
8
secured by an irrevocable letter of credit issued by a bank organized and existing
under the laws of the United States or any state.
3. 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
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.
(Exhibit C) (FY 20-21)
9
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;
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;
(Exhibit C) (FY 20-21)
10
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;
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:
(Exhibit C) (FY 20-21)
11
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:
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.
(Exhibit C) (FY 20-21)
12
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. 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:
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.
(Exhibit C) (FY 20-21)
13
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.
(Exhibit C) (FY 20-21)
14
Part III ⎯ Investment Policy - City of Huntsville
Post-Employment Benefit Plan
(aka “City of Huntsville PEB Trust”)
(Exhibit C) (FY 20-21)
15
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.
(Exhibit C) (FY 20-21)
16
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.
(Exhibit C) (FY 20-21)
17
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.
(Exhibit C) (FY 20-21)
18
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 20-21)
19
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 20-21)
20
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.
(Exhibit C) (FY 20-21)
21
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.
(Exhibit C) (FY 20-21)
22
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, 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.
Exhibit C FY 20-
21
23
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.
(Exhibit C) (FY 20-21)
24
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: _____________________________________
(Exhibit C) (FY 20-21)
25
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
(Exhibit C) (FY 20-21)
26
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.
(Exhibit C) (FY 20-21)
27
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 D)
29
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 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.
[Exhibit D]
30
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.
[Exhibit D]
31
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 D]
32
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 D]
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 D]
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 D]
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
Tony Sekaly
Coastal Securities
920 Memorial City Way, 11th Floor
Houston, TX 77024
ZSB@coastalsecurities.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
First 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
A.J. Capital
24915 Baywick Drive
Spring, TX 77389
Ajcap@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
Exhibit D FY 20-21 Fee Schedule
Exhibit D
Processing Fee on all debit/credit card transactions 2.5%Ordinance
Airport Ground Lease 15¢ per square foot, per year Ordinance
Alcohol Beverages Licenses and Permits (City Fee Only)Variable: Refer to Texas Administrative Code State
Copies of Public Information
Variable dependent on document or material type,
as set by the Texas Administrative Code, plus an
additional 25%.Ordinance
Certificate of Compliances Ordinance
City Limits $35
ETJ $35
Flood Plain $50 Ordinance
Minor Plats (includes amending & replats)$200 Ordinance
Preliminary Plat $300 Ordinance
Final Plats (includes amending & replats)$300 Ordinance
Filing Fees Actual Cost Past Practice
District Map Amendment $300 Ordinance
Request for Compliance/Zoning Verification Letters $35 each plus any copy expenses Ordinance
Variance/Appeal request $300 Ordinance
Conditional Use Permit $300 Ordinance
Subdivision Modification/Waiver $300 Ordinance
Street Name Change $350 Ordinance
GIS/MicroStation Map Past Practice
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)Ordinance
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
Fiscal Year 2020 - 2021
All Municipal Services
Airport
City Secretary
Development Services
1
Exhibit D FY 20-21 Fee Schedule
Plan Checking Fee Ordinance
Less than $35,000 valuation No Fee
$35,000 valuation or more One-half of building permit fee
Building Permits (Commercial)Ordinance
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 Ordinance
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 Ordinance
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 Ordinance
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 20-21 Fee Schedule
Fire Suppression System Permits Ordinance
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 Ordinance
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 Ordinance
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 Ordinance
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 Ordinance
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 Ordinance
Electrical $40
Placement $75
Plumbing $40
Plumbing Connection with Gas $42
Mechanical $45
Plumbing Permits Ordinance
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 20-21 Fee Schedule
4
Exhibit D FY 20-21 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 Ordinance
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
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)Ordinance
Re-Inspection Fee $35 Ordinance
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 Ordinance
Temporary Sign Permits -Non Profits Only $25 Ordinance
Public Improvement Permits 3% of valuation of public improvements Ordinance
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 Ordinance
On Site Sewage Facility $200 TCEQ Recommendation
Moving $100
Demolition $35
Driveway Approach $35
Vendor/Peddler Permits
$50 - valid 90 days in 1 location (separate permit
required for each location)
5
Exhibit D FY 20-21 Fee Schedule
Contractor Registration Fees Ordinance
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 Ordinance
Food Service Establishment Annual Health Permits Based on # of employees Ordinance
1-3 Employees $150
4+ employees $250
Late Permit Fee 1/2 of permit fee
Food Service Establishments Pre-Opening Fee $60 Ordinance
Food Service Establishments Re-Inspection Fee $300 Ordinance
Itinerant Restaurant Permits (1-3 days)$25 per Event Ordinance
Non-Profit Organizations, Annual Health Permits $60 Ordinance
Mobile Food Units Annual Health Permits $250 Ordinance
Late Permit Fee 1/2 of permit fee
Daycare Facilities Annual Health Permits $150 Ordinance
Late Permit Fee 1/2 of permit fee
Culverts/Driveways Installations by City Actual Cost Past Practice
Mobile Food Vendor Permit - Annual $200 (Separate permit required for each location)Ordinance
Mobile Food Vendor Permit - Temporary
$50 (Valid 90 days - separate permit required for
each location)Ordinance
Shared Mobility Device Permits
$200 Application Fee + $3.00 per Shareable
Mobility Device Ordinance
6
Exhibit D FY 20-21 Fee Schedule
Softball/Baseball Field Advisory Board Review
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 night
Tournaments $100 a day per field
Soccer Field Advisory Board Review
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
Martin Luther King, Jr Center Advisory Board Review
Rental Fee $150 per day
Security Deposit $100
Park Rental
Park Permit $150 Advisory Board Review
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
Admission Advisory Board Review
Adults Age 12 and Up $4.00
Children Age 3 to 11 $2.50
Children Age 2 or less No Charge
Season Pass Advisory Board Review
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 Advisory Board Review
Water Aerobics $55 per session/$75 annually/$25 quarterly Advisory Board Review
Lap Swimming Fees Advisory Board Review
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)Advisory Board Review
Program Fees Varies Partial Cost Recovery
Day Care Fees $2.50 per child
Cemetery Space Ordinance
Plot $1,000
Filing Fee Actual Cost
Landscape Repair Fee after Exhumations $250
Recreation Services
Aquatic Center
Cemetery Operations
7
Exhibit D FY 20-21 Fee Schedule
Fines - Daily Advisory Board Review
Fines - Over due
Books 10¢
Magazines 10¢
DVDs $1
Audiobook $1
Music 10¢
Maximums $10
Interlibrary Loans (daily fine)$1
Interlibrary Loans Maximums $30
Copies & Prints Advisory Board Review
Black and white 15¢ per page
Color 75¢ per page
Sales (donated items)Past Practice
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 Advisory Board Review
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
Room Rentals - Payment due at booking Advisory Board Review
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
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
Library Services
Tourism & Cultural Services
8
Exhibit D FY 20-21 Fee Schedule
Rental of China (See also "Security Fee")$25
Rental of Tablecloths $25
9
Exhibit D FY 20-21 Fee Schedule
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
10
Exhibit D FY 20-21 Fee Schedule
Sexually Oriented Business Permits Ordinance
Original Application $400
Renewal Application $200
Wrecker Permits $25/yr. per holder + $55/yr. per tow truck Ordinance
Taxi/Chauffer $100/yr. per taxi Ordinance
Accident Report $6 $11 online ($5 provider fee)Ordinance
Fingerprinting Fee $10 per person Past Practice
Posted Hourly Parking Fee -$1.00 per hr. / Max $5.00 Ordinance
Residential Alarm Fees Ordinance
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 Ordinance
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 Ordinance
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 Ordinance
$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 $150 Ordinance
Debris Removal $25 Ordinance
Waiting, per hour after the first hour $25 Ordinance
Storage for vehicles 25' in length and under per day $20 Ordinance
Storage for vehicles > 25' in length, per day $35 Ordinance
Notification $50 Ordinance
Preservation $20 Ordinance
Copies of Open Records
Variable dependent on document or material type,
as set by the Texas Administrative Code, plus an
additional 25%.Ordinance
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
11
Exhibit D FY 20-21 Fee Schedule
Fire Department Cost Recovery - (Non-County Residents)Ordinance
Motor Vehicle Incidents
Level 1- Basic Incident with hazardous materials assessment and scene
stabilization $494 Ordinance
Level 2- includes level 1 plus clean-up of fluids $562 Ordinance
Level 3- Vehicle Fire $687 Ordinance
Add-ons:
Extrication $1,483 Ordinance
Landing Zone $454 Ordinance
Hazmat
Level 1- Basic response:
Engine response, first responder assignment, perimeter establishment,
evacuations, set-up and command $796 Ordinance
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 Ordinance
Level 3- Advanced Response:
Level 1 and 2 plus recovery and identification of materials, disposal and
environmental clean-up.$6,707 Ordinance
Special Rescues -High Angle, Water Rescues, other Specialized Rescue
Itemized billing:
Per hour per response vehicle +$455 Ordinance
Per hour per rescue person $57 Ordinance
For incidents that require extended time on scene response will be itemized
Engine $455 per hour Ordinance
Truck $568 per hour Ordinance
Miscellaneous Equipment $341 per hour Ordinance
12
Exhibit D FY 20-21 Fee Schedule
Single Family Residential Ordinance
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 $4.94 per thousand gallons
Between 7,001 and 13,000 gallons $5.43 per thousand gallons
Over 13,000 gallons $6.18 per thousand gallons
Jointly Metered Residential/Multi-Family Ordinance
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 $4.94 per thousand gallons
Over 7,001 gallons $6.18 per thousand gallons
Multi-Family
Over 3,000 gallons $6.18 per thousand gallons
Commercial Metered Ordinance
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 $6.18 per thousand gallons
Institutional Users Ordinance
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 $6.67 per thousand gallons
Irrigation Ordinance
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
13
Exhibit D FY 20-21 Fee Schedule
Residential
Between 3,000 and 7,000 gallons $4.94 per thousand gallons
Between 7,001 and 13,000 gallons $5.43 per thousand gallons
Over 13,000 gallons $6.18 per thousand gallons
Jointly Metered Residential
Between 3,000 and 7,000 gallons $4.94 per thousand gallons
Over 7,001 gallons $6.18 per thousand gallons
Multi-Family
Over 3,000 gallons $6.18 per thousand gallons
Commercial
Over 3,000 gallons $6.18 per thousand gallons
Institutional
Over 3,000 gallons $6.67 per thousand gallons
Fire Hydrant Meters Past Practice
First 3,000 gallons $165 per month
Over 3,000 gallons $6.59 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 1.75
shall be applied to the cost components listed above.
Single Family/Jointly Metered Residential Ordinance
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 Ordinance
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
Sewer Service Call (normal business hours, found to be on customer side)
0-3 False Alarms
4-5 False Alarms
Wastewater Services
14
Exhibit D FY 20-21 Fee Schedule
Per Month Fee
Residential Collection
Single Family Households-Inside City Limits $22.70 Ordinance
Additional Collection Cart $12.10
Heavy Trash Collection per Call $30.00
Business Minimum Inside City Limits Collection $23.88 Ordinance
Additional Collection Cart $12.10
Per Month Fee per Unit
Multi-Family Residential Collection Ordinance
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 Ordinance
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 Ordinance
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 Ordinance
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 Ordinance
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 Ordinance
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 Ordinance
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 Ordinance
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
15
Exhibit D FY 20-21 Fee Schedule
Per Pickup Fee
Unscheduled/Extra Pickups - ONSITE $75.83 Ordinance
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 Ordinance
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 Ordinance
Per Month Fee Plus Tonnage Fee of $72.15 per ton
Open Top Roll-off - Inside City Limits
1 Collection per week $453.67 Ordinance
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 Ordinance
Call In $256.54
Stand-by $256.54
Trip Fee Plus Tonnage Fee of $72.15 per ton
Compacting Roll-off
Scheduled $173.49 Ordinance
Unscheduled $216.88
Extra Pickups $121.67
Roll-off Inactivity Fee $256.54 Ordinance
Per Trip Based on Compactor Type
Repositioning $144.43 Ordinance
Set Fees and Deposits
$162.23 Ordinance
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 Ordinance
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 Ordinance
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
16
Exhibit D FY 20-21 Fee Schedule
Per Month Fee
4 Yard Dumpster
1 Collection per week $112.58 Ordinance
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 Ordinance
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 Ordinance
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 Ordinance
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 Ordinance
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 Ordinance
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 Ordinance
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 Ordinance
Call In $305.37
Stand-by $305.37
Disposal Fees at Scale House
Basic Fee - Inside City Limit $66.72 per ton Ordinance
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 Past Practice
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
17
Exhibit D FY 20-21 Fee Schedule
Meter Accuracy Test
$75 per meter or actual cost if cost of making test
exceeds $75 Ordinance
Replacement of Water Meter, Lock, or Head $50 per occurrence Ordinance
Tamper Fee (Water Meter)$75.00 per Occurrence Past Practice
Negligent damage to meter or any associated to electronic device Replacement Cost Ordinance
Customer request for meter on/off for repairs $20 Past Practice
Tamper Fee (Fire Hydrant)$150.00 per Occurrence
Portal Service $1 per Meter
Water Tapping Charge Ordinance
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 Ordinance
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 Past Practice
Service Fee (new and transferred service)$20 Ordinance
Service Fee (Restricted Access Fee)$20
Service Fee (sprinkler on or off)$20 Ordinance
Same Day Service Fee for Suspended Account $50.00 Ordinance
Requests for same day service for suspended account may be taken between
After Hours - after 5pm $75
Residential Security Deposit Ordinance
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 Past Practice
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 .
18
Exhibit D FY 20-21 Fee Schedule
Commercial Security Deposit
2 x the average estimated monthly utility service
charge Ordinance
Construction/Contractor Roll-offs (new accounts)$1,500
Solid Waste Disposal Deposit $500 Past Practice
Fire Hydrant Meter Deposit $500 Past Practice
Penalty for Late Payment 10% of amount of utility service charge Ordinance
Account Suspension Fee $25 Ordinance
Returned Check Fee $35 Ordinance
Surcharges for Industrial Wastewater Discharges $1.61 per thousand gallons of wastewater Ordinance
Meter Box Lid Replacement Small -$10 Large -$15 Past Practice
Meter Box Replacement Past Practice
Small box / lid combo $25
Large box /lid combo $40
Use of City Equipment At Cost/ Current FEMA Rate Past Practice
Use of City Labor Actual Rate Past Practice
Tanker Truck Fill (up to 8,000 gallons)$75.00 Past Practice
Tanker Truck Fill over 8,000 gallons $ 75 + $6.59 per thousand gallons over 8,000
19
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TNT-856 06-20/6
2020 Tax Rate Calculation Worksheet
No-New-Revenue Tax Rate
Huntsville City
1212 Ave. M, Huntsville, TX, 77340
936-291-5486
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. 2019 total taxable value. Enter the amount of 2019 taxable value on the 2019
tax roll today. Include any adjustments since last year's certification; exclude
Tax Code Section 25.25{d) one-fourth and one-third over-appraisal corrections
from these adjustments. Exclude any property value subject to an appeal under
Chapter 42 as of July 25 (will add undisputed value in Line 6). This total
includes 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. 2019 tax ceilings. Counties, Cities and Junior College Districts. Enter 2019
total taxable value of homesteads with tax ceilings. These include the
homesteads of homeowners age 65 or older or disabled. Other units enter "0" If
your taxing units adopted the tax ceiling provision in 2019 or prior year for
homeowners age 65 or older or disabled, use this step.2
3. Preliminary 2019 adjusted taxable value. Subtract line 2 from line 1.
4. 2019 total adopted tax rate.
5. 2019 taxable value lost because court appeals of ARB decisions reduced
2019 appraised value.
A. Original2019 ARB values: $64,101,700
B. 2019 values resulting from final court
decisions: -$63,141,811
C. 2019 value loss. Subtract B from A. 3
6. 2019 taxable value subject to an appeal under Chapter 42, as of July 25.
A. 2019 ARB certified value: $359,481,636
B. 2019 dispuated value: -$17,512,705
C. 2019 undisputed value. Subtract B from A.4
7. 2019 Chapter 42 related adjusted values. Add line 5 and line 6.
8. 2019 taxable value, adjusted for actual and potential court-ordered
adjustments.
Add line 3 and line 7.
1 Tex. Tax Code§ 26.012(14)
2 Tex. Tax Code§ 26.012(14)
$1,820,005,311
$320,150,828
$1,499,854,483
$0.314800/$100
$959,889
$341,968,931
$342,928,820
$1,842,783,303
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7/29/2020
3 Tex. Tax Code§ 26.012(13)
4 Tex. Tax Code§ 26.012(13)
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2020 Tax Rate Calculation Worksheet
Huntsville City
No-New-Revenue Tax Rate (continued)
9. 2019 taxable value of property in territory the taxing unit deannexed after
January 1, 2019. Enter the 2019 value of property in deannexed territory.5
10. 2019 taxable value lost because property first qualified for an exemption
in 2020. 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 2020 does not create a new exemption or reduce taxable value.
A. Absolute exemptions. Use 2019 market value: $813,700
B. Partial exemptions. 2020 exemption amount or
2020 percentage exemption times 2019 value: + $1,668,948
C. Value loss. Add A and B.6
11. 2019 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 2020. Use only those properties
that first qualified in 2020; do not use properties that qualified in 2019.
A. 2019 market value: $0
B. 2020 productivity or special appraised value: -$0
C. Value loss. Subtract B from A.?
12. Total adjustments for lost value. Add lines 9, 10C and 11C.
13. Adjusted 2019 taxable value. Subtract line 12 from line 8.
14. Adjusted 2019 total levy. Multiply line 4 by line 13 and divide by $100.
15. Taxes refunded for years preceding tax year 2019. Enter the amount of
taxes refunded by the taxing unit for tax years preceding tax year 2019. 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 2019.
This line applies only to tax years preceding tax year 2019.8
16. Taxes in tax increment financing (TIF) for tax year 2019. 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 2020 captured appraised value in Line 18D, enter
"0".9
17. Adjusted 20191evy 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)
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$0
$2,482,648
$0
$2,482,648
$1,840,300,655
$5,793,266
$11,032
$156,665
$5,647,633
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2020 Tax Rate Calculation Worksheet
Huntsville City
No-New-Revenue Tax Rate (continued)
18. Total 2020 taxable value on the 2020 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: $2,246,518,972
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 2020
captured appraised value of property taxable by a
taxing unit in a tax increment financing zone for
which the 2020 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 -$50,203,827
E. Total 2020 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. 2020 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.14
B. 2020 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)
$97,547,233
+ $0
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$2,196,315,145
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2020 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. 2020 tax ceilings. Counties, cities and junior colleges enter 2020 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 2019 or a prior year for
homeowners age 65 or older or disabled, use this step.16
21. 2020 total taxable value. Add lines 18E and 19C. Subtract line 20.17
22. Total 2020 taxable value of properties in territory annexed after January
1, 2019. Include both real and personal property. Enter the 2020 value of
property in territory annexed.18
23. Total 2020 taxable value of new improvements and new personal property
located in new improvements. New means the item was not on the appraisal
roll in 2019. 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, 2019
and be located in a new improvement. New improvements do include property
on which a tax abatement agreement has expired for 2020.19
24. Total adjustments to the 2020 taxable value. Add lines 22 and 23.
25. Adjusted 2020 taxable value. Subtract line 24 from line 21.
26. 2020 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 2020 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)
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$97,547,233
$338,440,946
$1,955,421,432
$28,331,377
$83,182,216
$111,513,593
$1,843,907,839
$0.3062/$100
$/$100
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Voter-Approval Tax Rate
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2020 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. 2019 M&O tax rate. Enter the 2019 M&O tax rate. $0.2519/$100
29. 2019 taxable value, adjusted for actual and potential court-ordered
adjustments. Enter the amount in line 8 of the No-New-Revenue Tax Rate
Worksheet. $1,842,783,303
30. Total2019 M&O levy. Multiply line 28 by line 29 and divide by $100. $4,641,971
31. Adjusted 2019 levy for calculating NNR M&O taxes. Add line 31 E to line 30.
A. 2019 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 2019, 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. $3,154,832
B. M&O taxes refunded for years preceding tax
year 2019: 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 2019.
This line applies only to tax years preceding tax
year 2019. + $7,335
C. 2019 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 2019 captured appraised value in Line
180, enter 0. -$156,665
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2020 Tax Rate Calculation Worksheet
Huntsville City
Voter-Approval Tax Rate (continued)
31. D. 2019 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. 2019 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. $3,005,502
32. Adjusted 2020 taxable value.
Enter the amount in line 25 of the No-New-Revenue Tax Rate Worksheet.
33. 2020 NNR M&O rate. (unadjusted)
Divide line 31 by line 32 and multiply by $100.
34. Rate adjustment for state criminal justice mandate. 23
Enter the rate calculated in C. If not applicable, enter 0.
A. 2020 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. $0
B. 2019 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. $0
C. Subtract B from A and divide by line 32 and
multiply by $100. $0/$100
22 [Reserved for expansion]
23 Tex. Tax Code§ 26.044
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$7,647,473
$1,843,907,839
$0.4147/$100
$0/$100
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2020 Tax Rate Calculation Worksheet
Huntsville City
Voter-Approval Tax Rate (continued)
35. Rate adjustment for indigent health care
expenditures. 24 Enter the rate calculated in C. If not
applicable, enter 0.
A. 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.
B. 2019 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, 2018 and ending on June 30, 2019, less
any state assistance received for the same
purpose.
C. Subtract B from A and divide by line 32 and
$0
$0
multiply by $100. $0/$100
36. Rate adjustment for county indigent defense
compensation.25 Enter the lessor of C and D. If not
applicable, enter 0.
A. 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.
B. 2019 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,
2018 and ending on June 30, 2019, 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.
24 Tex. Tax Code§ 26.0442
25 Tex. Tax Code § 26.0442
$0
$0
$0/$100
$0/$100
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$0/$100
$0/$100
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2020 Tax Rate Calculation Worksheet
Huntsville City
Voter-Approval Tax Rate (continued)
37. Rate adjustment for county hospital expenditures.26
Enter the lessor of C and D, if applicable. If not
applicable, enter 0.
A. 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
B. 2019 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,
2018 and ending on June 30, 2019. $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
38. Adjusted 2020 NNR M&O rate.
Add lines 33, 34, 35, 36, and 37.
39. 2020 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-1)
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$0/$100
$0.4147/$100
$0.4292/$100
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2020 Tax Rate Calculation Worksheet
Huntsville City
Voter-Approval Tax Rate (concluded)
40. Total 2020 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. $3,045,544
B: Subtract unencumbered fund amount used to
reduce total debt. -$186,500
C: Subtract certified amount spent from sales tax to
reduce debt (enter zero if none). -$0
D: Subtract amount paid from other resources. -$1,560,671
E: Adjusted debt. Subtract B, C and D from A.
41. Certified 2019 excess debt collections. Enter the amount certified by the
collector. 28
42. Adjusted 2020 debt. Subtract line 41 from line 40E.
43. 2020 anticipated collection rate. If the anticipated rate
in A is lower than actual rates in B, CorD, enter the
lowest rate from B, Cor 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%. 29
A. Enter the 2020 anticipated collection rate
certified by the collector.30 100.0000%
B. Enter the 2019 actual collection rate. 98.7000%
C. Enter the 2018 actual collection rate. 99.0200%
D. Enter the 2017 actual collection rate. 98.5000%
44. 2020 debt adjusted for collections. Divide line 42 by line 43.
45. 2020 total taxable value. Enter the amount on line 21 of the No-New-
Revenue Tax Rate Worksheet.
46. 2020 debt rate. Divide line 44 by line 45 and multiply by $100.
47. 2020 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 2020 county voter-approval tax rate.
28 Tex. Tax Code§ 26.012(10) and 16.04(b)
29 Tex. Tax Code § 26.04(h),(h-1) and (h-2)
30 Tex. Tax Code§ 26.04(b)
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$1,298,373
$0
$1,298,373
100.0000%
$1 ,298,373
$1 ,955,421,432
$0.0663/$1 00
$0.4955/$1 00
$/$100
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2020 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 2019 or
May 2020, 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 2019, 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 2019 or in May 2020.
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 2019. Enter the
$0
sales tax revenue for the previous four quarters. Do not multiply by .95. $3,154,832
51. 2020 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. 2020 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. 2020 NNR tax rate, adjusted for sales tax.
Taxing units that adopted the sales tax in November 2019 or in May 2020.
Subtract line 52 from line 53. Skip to line 55 if you adopted the additional
sales tax before November 2019.
55. 2020 voter-approval tax rate, unadjusted for sales tax.36 Enter the rate from
line 47 or 48, as applicable, of the Voter-Approval Tax Rate Worksheet.
56. 2020 voter-approval tax rate, adjusted for sales tax. Subtract line 52 from
line 55.
31 [Reserved for expansion]
32 Tex. Tax Code§ 26.04 l (d)
33 Tex. Tax Code § 26.041 (i)
34 Tex. Tax Code§ 26.041 (d)
$1 ,955,421,432
$0.1613/$100
$0.3062/$1 00
$0.3062/$1 00
$0.4955/$1 00
$0.3342/$1 00
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35 Tex. Tax Code§ 26.04(c)
36 Tex . Tax Code§ 26.04(c)
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2020 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 Environmental Quality
(TCEQ). Enter the amount certified in the determination letter from TCE0.37
The taxing unit shall provide its tax assessor-collector with a copy of the letter. 38
58. 2020 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. 2020 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
$1,955,421,432
$0/$100
$0.3342/$1 00
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2020 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 2020, the difference between the adopted tax rate and
voter-approval rate is considered zero, therefore the unused increment rate for
2020 is zero. 40
This section should only be completed by a taxing unit that does not meet the
definition of a special taxing unit. 41
61. 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 2020, enter zero.
62. 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 2020, enter zero.
63. 2017 unused increment rate. Subtract the 2017 actual tax rate and the 2017
unused increment rate from the 2017 voter-approval tax rate. If the number is
less than zero, enter zero. If the year is prior to 2020, enter zero.
64. 2020 unused increment rate. Add lines 61, 62, and 63.
65. 2020 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)(l)
$0/$100
$0/$100
$0/$100
$0/$100
$0.3342/$100
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De Minimis Rate
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2020 Tax Rate Calculation Worksheet
Huntsville City
The de minimis rate is the rate equal to the sum of the no-new-revenue
maintenance and operations rate, the rate that will raise $500,000, and the current
debt rate for a taxing unit. 42
This section should only be completed by a taxing unit that is a municipality of
less than 30,000 or a taxing unit that does not meet the definition of a special
taxing unit. 43
66. Adjusted 2020 NNR M&O tax rate. Enter the rate from line 38 of the Voter-
Approval Tax Rate Worksheet.
67. 2020 total taxable value. Enter the amount from line 21 of the No-New-
Revenue Tax Rate Worksheet.
68. Rate necessary to impose $500,000 in taxes. Divide $500,000 by line 67 and
multiply by $100.
69. 2020 debt rate. Enter the rate from line 46 of the Voter-Approval Tax Rate
Worksheet.
70. De minimis rate. Add lines 66,68, and 69.
42 Tex. Tax Code§ 26.012(8-a)
43 Tex. Tax Code§ 26.063(a)(l)
$0.4147/$100
$1,955,421,432
$0.0255/$100
$0.0663/$100
$0.5065/$1 00
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Total Tax Rate
Indicate the applicable total tax rates as calculated above.
No-New-Revenue tax rate. As applicable, enter the 2020 NNR tax rate from: line 26,
line 27 (counties), or line 54 (adjusted for sales tax).
Voter-approval tax rate. As applicable, enter the 2020 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.
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$0.3062/$1 00
$0.3342/$1 00
$0.5065/$1 00
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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
51~Y£'( (Yl. 'i6-rcc:-re'
Taxing Umt Representative
44 Tex. Tax Code§ 26.04(c)
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2020 Notice of No-New-Revenue Tax Rate
Worksheet for Calculation of Tax Increase/Decrease
Entity Name: Huntsville City
1.2019 taxable value, adjusted for court-ordered reductions.
Enter line 8 of the No-New-Revenue Tax Rate Worksheet.
2.2019 total tax rate.
Enter line 4 of the No-New-Revenue Tax Rate Worksheet.
3. Taxes refunded for years preceding tax year 2019.
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.
5.2020 total taxable value. Enter Line 21 of
the No-New-Revenue Tax Rate Worksheet.
6.2020 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.
7.2020 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.
9.2020 total taxes if a tax rate equal to the no-new-revenue tax rate is adopted.
Sum of line 7 for all funds.
lO.Tax Increase (Decrease).
Subtract Line 8 from Line 9.
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Date: 07/29/2020
$1,842,783,303
0.314800
$11,032
$5,812,114
$1,955,421,432
0.306200
$5 ,987,500
$5,812,114
$5,987,500
$175,386
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Huntsville City
Tax Rate Recap for 2020 Tax Rates
Tax Levy
This is calculated
using the Total Additional Tax Levy Additional Tax Levy
Tax Rate Per Adjusted Taxable Compared to last Compared to no-
Description of Rate $100 y:ear's tax leyy: of new-revenue tax rate Value (line 25) of the 4,721,542 leyy: of 5,646,046 No-New-Revenue
Tax Rate Worksheet
Last Year's Tax Rate 0.314800 $5,804,622 $1,083,080 $158,576
No-New-Revenue Tax Rate 0.306200 $5,646,046 $924,504 $0
Notice & Hearing Limit* 0.306200 $5,646,046 $924,504 $0
Voter-Approval Tax Rate 0.334200 $6,162,340 $1,440,798 $516,294
Proposed Tax Rate 0.000000 $0 $-4,721,542 $-5,646,046
No-New-Revenue Tax Rate Increase in Cents per $100
0.00 0.306200 5,646,046 924,504 0
0.50 0.311200 5,738,241 1,016,699 92,195
1.00 0.316200 5,830,437 1,108,895 184,391
1.50 0.321200 5,922,632 1,201,090 276,586
2.00 0.326200 6,014,827 1,293,285 368,782
2.50 0.33 1200 6,107,023 1,385,481 460,977
3.00 0.336200 6,199,218 1,477,676 553,172
3.50 0.341200 6,291,414 1,569,872 645,368
4.00 0.346200 6,383,609 1,662,067 737,563
4.50 0.351200 6,475,804 1,754,262 829,759
5.00 0.356200 6,568,000 1,846,458 921,954
5.50 0.361200 6,660,195 1,938,653 1,014,149
6.00 0.366200 6,752,391 2,030,849 1,106,345
6.50 0.371200 6,844,586 2,123,044 1,198,540
7.00 0.376200 6,936,781 2,215,239 1,290,735
7.50 0.381200 7,028,977 2,307,435 1,382,931
8.00 0.386200 7,121,172 2,399,630 1,475,126
8.50 0.391200 7,213,367 2,491,826 1,567,322
9.00 0.396200 7,305,563 2,584,021 1,659,517
9.50 0.401200 7,397,758 2,676,216 1,751,712
10.00 0.406200 7,489,954 2,768,412 1,843,908
10.50 0.411200 7,582,149 2,860,607 1,936,103
11.00 0.4 16200 7,674,344 2,952,803 2,028,299
11.50 0.421200 7,766,540 3,044,998 2,120,494
12.00 0.426200 7,858,735 3,137,193 2,212,689
12.50 0.431200 7,950,931 3,229,389 2,304,885
13.00 0.436200 8,043,126 3,321,584 2,397,080
13.50 0.441200 8,135,321 3,413,779 2,489,276
14.00 0.446200 8,227,517 3,505,975 2,581,471
14.50 0.451200 8,319,712 3,598,170 2,673,666
• *Notice & Hearing Limit Rate: This is the highest tax rate that may be adopted without notices and a
public hearing. It is the lower of the voter-approval tax rate or the no-new-revenue tax rate.
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Tax Levy:
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This is calculated by taking the adjusted taxable value (line 25 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
Last Year: Tax Rate Worksheet), 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
This Year: No-New-Revenue Tax 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.
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TNT-856 04-20/16
2020 Notice of Tax Rates in Huntsville City
Property Tax Rates in Huntsville City. This notice concerns the 2020 property tax rates for
Huntsville City. This notice provides information about two tax rates. The no-new-revenue tax rate
would Impose the same amount of taxes as last year if you compare properties taxed in both years.
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:
Last year's adjusted taxes
(after subtracting taxes on lost property)
This year's adjusted taxable value
(after subtracting value of new property)
=This year's no-new-revenue tax rate
+This year's adjustments to the no-new-revenue
tax rate
=This year's adjusted no-new-revenue tax rate
$5,647,633
$1,843,907,839
0.306200/$100
$0 /$100
0.306200/$100
This is the maximum rate the taxing unit can propose unless it publishes a notice and holds a
hearing.
This year's voter-approval tax rate:
Last year's adjusted operating taxes
(after adjusting as required by law)
This year's adjusted taxable value
(after subtracting value of new property)
=This year's voter-approval operating tax rate
x(l.035 or 1.08, as applicable)= this
year's maximum operating rate
+This year's debt rate
+The unused increment rate, if applicable
=This year's total voter-approval tax rate
$7,647,473
$1,843,907,839
0.414 700/$100
0.429200/$100
0.066300/$100
0. 000000/$100
0.3342/$100
This is the maximum rate the taxing unit can adopt without an election for voter approval.
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 a corresponding debt
obligation.
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Type of Fund
General Fund
Debt Service Fund
2020 Debt Service:
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Balance
$15,464,289
$1,447,571
The taxing unit plans to pay the following amounts for long-term debts that are secured by property taxes. These amounts will be paid from property tax revenues (or
additional sales tax revenues, if applicable).
Description of Debt
$Capital Projects
Principal or
Contract
Payment to
be Paid from
Property
Taxes
$1,528,281
Total required for 2020 debt service
Interest to be
Paid from
Property
Taxes
$1,517,263
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 2020
Other
Amounts to
be Paid
$0
+ Amount added in anticipation that the unit will collect only 100.000000% of
its taxes in 2020
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: DeP.UtY. Chief AP.P.raiser
Date prepared: JulY. 29, 2020
You can inspect a copy of the full calculations on the taxing unit's website at:
huntsvilletx.gov.
www.truth-in-taxation.com/PrintForms.aspx
Total
Payment
$3,045,544
$3,045,544
$186,500
$1,560,671
$0
$1,298,373
$0
$1,298,373
22/22
Agenda Item #3b
Item/Subject: Consider approval of Ordinance 2020-44 adopting the Tax Rate and levying taxes for
the City of Huntsville for the Fiscal Year 2020-2021.
Initiating Department/Presenter: Finance
Presenter: Steve Ritter – Finance Director
Recommended Motion: Move to adopt Ordinance 2020-44 adopting the Tax Rate and levying taxes
for the City of Huntsville for the Fiscal Year 2020-2021.
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 $0.3062 per $100 valuation was
used. The City provided notices concerning a proposed rate of $0.3341 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 20-21 Budget where $5,227,000 of Property Tax
Revenue was budgeted for in General Fund and $1,472,550 of Property Tax Revenue was budgeted
for in Debt Service Fund.
Approvals: ☐City Attorney ☒Director of Finance ☒City Manager
Associated Information:
• Ordinance 2020-44 - page 2
9/15/2020
Agenda Item: 3b
CITY COUNCIL AGENDA
Agenda Item #3b
ORDINANCE NO. 2020-44
AN ORDINANCE ADOPTING THE TAX RATE AND LEVYING TAXES FOR THE CITY OF
HUNTSVILLE FOR THE 2020-2021 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 2020-2021 fiscal year ending
September 30, 2021, an ad valorem tax of NO AND 30.62/100 ($0.3062) DOLLARS for each ONE
HUNDRED ($100.00) DOLLARS of assessed value of property located within the city limits of Huntsville,
Texas on January 1, 2020, 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 $0.2399
Debt Service for Payment of General Obligations Indebtedness $0.0663
$0.3062
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 15th day of September 2020.
THE CITY OF HUNTSVILLE, TEXAS
Andy Brauninger, Mayor
ATTEST:
Brenda Poe, City Secretary
APPROVED AS TO FORM:
Leonard Schneider, City Attorney
Agenda Item #3c
Item/Subject: Consider ratifying the increased property tax revenues of $298,050 reflected in the
Fiscal Year 2020-2021 Budget as adopted.
Initiating Department/Presenter: Finance
Presenter: Steve Ritter, Finance Director
Recommended Motion: Move to ratify the increased property tax revenues of $298,050 reflected in
the Fiscal Year 2020-2021 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 $0.3062/$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
9/15/2020
Agenda Item: 3c
CITY COUNCIL AGENDA
Agenda Item #4a
Item/Subject: Consider approving nominees for City boards, committees, and commissions.
Initiating Department/Presenter: City Council
Presenter: Mayor Andy Brauninger
Recommended Motion: Mayor moves his nominations 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:
Huntsville Arts Commission –
Ann Hodges and
Una Grace Nash
Board of Adjustments –
Cheryl Reader, Place 2, and
Donald Kopnicky, Alternate A
Previous Council Action: None.
Financial Implications:
☒There is no financial impact associated with this item.
Approvals: ☐City Attorney ☐Director of Finance ☐City Manager
9/15/20
Agenda Item: 4a
CITY COUNCIL AGENDA
Request Type:Volunteer for a Board or
Commission
Request Location:
Request ID Number:6188
Date Submitted:8/28/2020
Date Closed:(open)
Date Printed:8/28/2020 11:35:54 AM
Submitter Information:Ann Hodges
241 Hickory Dr
Huntsville, TX 77320
Phone: 9362954669
Email: cashodges@att.net
Priority:Normal
Assigned To:Poe, Brenda
Date/Person Comments
8/28/2020 11:29:18 AM
(anonymous)
Your Request ID Number is 6188.
Select Board(s) and/or Commission(s)
If selected by the Huntsville City Council, on which board/commissions would
you be willing to serve? Huntsville Arts Commission
Your Information
Name Ann Hodges
Street Number and Name 241 Hickory Dr
Address Line 2
City Huntsville
State TX
Zip Code 77320
Phone Number 9362954669
Email Address cashodges@att.net
Preferred Contact Method email
Employment and Residency Background Information
Employer N/A
Occupation N/A
How long have you been a resident of Huntsville? 50+ years
Are you a qualified voter of the City of Huntsville? Yes
Additional Background Information
Please upload a brief resume, including education, past employment, and any
special background or qualifications you have for serving on this
board/commission. No file was uploaded
Please state why you wish to serve the City of Huntsville as a member of a
board, commission or committee. I have supported the Wynne Home since the
beginning. I believe that the mission of the Wynne Home and the Arts
Commission are important assets to the city. It offers the opportunity for adults and
children to be a part of and to learn and develop their art abilities. I believe the
Arts are important and I enjoy being able to promote these skills.
Do you currently serve on a City of Huntsville board, commission or
committee? Yes
If yes, which board(s), commission(s) or committee(s)? Arts Commission
How long? (Include approximate start and end dates) 20+ years
Do you have any relatives who work for the City of Huntsville? No
If so, who?
Do you receive any direct compensation or gain from the City of Huntsville?
No
If so, what type?
This application will remain active for ninety (90) days, unless you are
appointed to a board or commission. You must reapply if you would like to be
reappointed at the end of a term or to be considered for another board or
commission.
Request Type:Volunteer for a Board or
Commission
Request Location:
Request ID Number:6179
Date Submitted:8/26/2020
Date Closed:(open)
Date Printed:8/26/2020 3:58:57 PM
Submitter Information:Cheryl Reader
1610 Green Briar Dr
36 Elkins Lk
Huntsville, TX 77340
Phone: 9366612012
Email:
Reader.cheryl@yahoo.com
Priority:Normal
Assigned To:Poe, Brenda
Date/Person Comments
8/26/2020 3:22:20 PM
(anonymous)
Your Request ID Number is 6179.
Select Board(s) and/or Commission(s)
If selected by the Huntsville City Council, on which board/commissions would
you be willing to serve? Board of Adjustments & Appeals,Parks & Recreation
Advisory Board
Your Information
Name Cheryl Reader
Street Number and Name 1610
Green Briar Dr
Address Line 2 36 Elkins Lk
City Huntsville
State TX
Zip Code 77340
Phone Number 9366612012
Email Address Reader.cheryl@yahoo.com
Preferred Contact Method email
Employment and Residency Background Information
Employer Windham School District
Occupation DBA
How long have you been a resident of Huntsville? 57 yrs
Are you a qualified voter of the City of Huntsville? Yes
Additional Background Information
Please upload a brief resume, including education, past employment, and any
special background or qualifications you have for serving on this
board/commission. No file was uploaded
Please state why you wish to serve the City of Huntsville as a member of a
board, commission or committee. I have enjoyed my experience with the Board
of Adjustments and would like to continue as a participating member. I believe
citizens should make personal effort to ensure the quality of our community.
Do you currently serve on a City of Huntsville board, commission or
committee? Yes
If yes, which board(s), commission(s) or committee(s)? Board of Adjustments
How long? (Include approximate start and end dates) 1/2019
Do you have any relatives who work for the City of Huntsville? No
If so, who?
Do you receive any direct compensation or gain from the City of Huntsville?
No
If so, what type?
This application will remain active for ninety (90) days, unless you are
appointed to a board or commission. You must reapply if you would like to be
reappointed at the end of a term or to be considered for another board or
commission.
Request Type:Volunteer for a Board or
Commission
Request Location:
Request ID Number:6150
Date Submitted:8/12/2020
Date Closed:(open)
Date Printed:8/12/2020 10:03:08 AM
Submitter Information:donald r Kopnicky
3713 summer lane
Huntsville, TX 77340
Phone: 17132132556
Email:
donaldkopnicky@yahoo.com
Priority:Normal
Assigned To:Poe, Brenda
Date/Person Comments
8/12/2020 10:02:04 AM
(anonymous)
Your Request ID Number is 6150.
Select Board(s) and/or Commission(s)
If selected by the Huntsville City Council, on which board/commissions would
you be willing to serve? Huntsville Housing Authority,Historic Preservation
Commission,Main Street Advisory Board,Other,Planning Commission,Zoning
Board of Adjustments
Your Information
Name donald r Kopnicky
Street Number and Name 3713
summer lane
Address Line 2
City Huntsville
State TX
Zip Code 77340
Phone Number 17132132556
Email Address donaldkopnicky@yahoo.com
Preferred Contact Method email
Employment and Residency Background Information
Employer self employed
Occupation mental health counselor
How long have you been a resident of Huntsville? 8 years
Are you a qualified voter of the City of Huntsville? Yes
Additional Background Information
Please upload a brief resume, including education, past employment, and any
special background or qualifications you have for serving on this
board/commission. aug30BH.pdf
Please state why you wish to serve the City of Huntsville as a member of a
board, commission or committee. i have the time; and i want to help if i can
Do you currently serve on a City of Huntsville board, commission or
committee? No
If yes, which board(s), commission(s) or committee(s)?
How long? (Include approximate start and end dates)
Do you have any relatives who work for the City of Huntsville? No
If so, who?
Do you receive any direct compensation or gain from the City of Huntsville?
No
If so, what type?
This application will remain active for ninety (90) days, unless you are
appointed to a board or commission. You must reapply if you would like to be
reappointed at the end of a term or to be considered for another board or
commission.
Agenda Item #4b
Item/Subject: Consider amending the Schedule of Fees and Charges for the FY 2020-2021 Budget to
change the multiplier on outside city limit water rates from 1.75 to 1.50 and adopt Ordinance 2020-37.
Initiating Department/Presenter: City Council
Presenter: Joe Rodriquez, Mayor Pro Tem, Ward 4
Recommended Motion: Move to approve amending the Schedule of Fees and Charges for the FY 2020-
2021 Budget to change the multiplier on outside city limit water rates from 1.75 to 1.50 and adopt
Ordinance 2020-37.
Strategic Initiative: Goal #6 - Finance - Provide a sustainable, efficient and fiscally sound government
through conservative fiscal practices and resource management.
Discussion: The multiplier for outside city water customers was increased to 1.75 from 1.25 with
adoption of the Budget for FY 2019-2020. This increase was a 40 percent increase to rates on the
outside city water customers. This 1.75 multiplier was maintained in the FY 2020-2021 Budget. The
multiplier of 1.25 before being increased to 1.75 in the 19-20 Budget had been at this level since at least
FY 11-12 and probably a decade before that.
Previous Council Action: Council adopted the original FY 20-21 budget and the Schedule of Fees and
Charges with the “multiplier” for outside the city limits customers at their September 15, 2020 meeting
earlier this evening.
Financial Implications:
Staff’s best estimate is that reducing the multiplier from 1.75 to 1.50 will reduce revenue to
the Utility Fund by about $40,000.
Approvals: ☐City Attorney ☒Director of Finance ☐City Manager
Associated Information:
• Ordinance 2020-37
• Mayor Pro Tem Rodriquez’ agenda item request email
9/15/20
Agenda Item: 4b
CITY COUNCIL AGENDA
Agenda Item #4b
ORDINANCE NO. 2020-37
AN ORDINANCE OF THE CITY OF HUNTSVILLE, TEXAS, AMENDING THE 2020-
2021 ANNUAL BUDGET, ORDINANCE NO. 2020-43 TO AMEND ADOPTED
“SCHEDULE OF FEES AND CHARGES” OF THE BUDGET; AND DECLARING AN
EFFECTIVE DATE.
WHEREAS, the 2020-2021 Annual Budget and CIP Budgets were adopted by Ordinance 2019-43 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 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 change the multiplier
for outside the city limits water customers included in the Schedule of Fees and Charges
from 1.75 to 1.50.
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 “multiplier” for outside the city limits customers in the
Schedule of Fees and Charges, as required by the laws of the State of Texas, requires that
this ordinance shall take effect on October 1, 2020 (the beginning of the 2020-2021 fiscal
year).
Section 6. This ordinance shall take effect immediately after its passage.
PASSED AND APPROVED on this the 15th day of September 2020.
THE CITY OF HUNTSVILLE, TEXAS
__________________________________
Andy Brauninger, Mayor
ATTEST: APPROVED AS TO FORM:
____________________________ _____________________________________
Brenda Poe, City Secretary Leonard Schneider, City Attorney
Brenda Poe <bpoe@huntsvilletx.gov>
Agenda Item
Joe Rodriquez <jrodriquez@huntsvilletx.gov>Thu, Sep 3, 2020 at 4:27 PM
To: Brenda Poe <bpoe@huntsvilletx.gov>, Julie O'Connell <joconnell@huntsvilletx.gov>, Kevin Lunsford
<klunsford@huntsvilletx.gov>, Andy Brauninger <abrauninger@huntsvilletx.gov>
Brenda,
I would like for you to place an agenda item on the council meeting of September 15, 2020, for discussion and possible
action regarding reducing the out of city water rates from 1.75 times the city rate to 1.5 times the in-city rate. This would
be a reduction in the out-of-city water rates of 20%.
The reason I am placing this on the council agenda is because I was contacted by Mr. Larry Stephenson, 84 Brian
Meadow, Timberwilde Subdivision, Huntsville, Texas 77320, telephone 936-294-0956, who advised he was representing
others in his subdivision who were very upset about their water bills for July and August of this year. He had called the
water billing office of the city and was told that out of city water rates had been raised from 1.25 to 1.75 times the city
rate. Mr. Stephenson stated they had no idea that the rates had been changed and they were not notified of any change
before they noticed it on their water bills. I advised him that the council had changed the rates because the residents in
Timberwilde did not pay city taxes and it cost the city to maintain the water infrastructure to provide water to Timberwilde.
I also told Mr. Stephenson that the city's cost from the Trinity River Authority had increased 10-fold (I did not have the
exact figures, but those were later furnished to me by Steve Ritter and the city's costs went from 3 cents per 1000 gallons
to 29.1 cents per 1000 gallons.) Mr. Stephenson advised that residents from Timberwilde would like to speak to the
council about their increase in water rates because they believe that such a large increase in their rates was totally
unjustified. He asked me to place it on the agenda for September 15, 2019.
In looking into this matter, Steve Ritter advised that the rate had gone to 1.75 times the in-city rate in October of 2019.
Prior to the raise in the rate, the out-of-city rate had been 1.25 times the in-city rate and it had been the same since, at
least, 2011.
I did vote for the increase in the out-of-city rate in October 2019, but after thinking about it, a 40% increase in the rate
seems a bit much to me now. In speaking to Mr. Stephenson, I told him that I was not promising anything, but I would
make an effort to reduce the out-of-city rate by 20% and they would only realize a 20% increase instead of the 40%
increase to their rate.
I discussed the matter with Mr. Kulhavy, prior to his absence and he stated that he believed it could be done without
having any big effect on the budget. I also discussed it with Steve Ritter who determined that if the council approved the
reduction to 1.5 times the in-city rate, it would have about a $40,000.00 annual decrease in the city utility budget.
The matter is placed on the September 15 agenda to listen to the citizens input, for discussion by the council and if action
is to be taken, I will move to direct city staff and City Attorney Schneider to draft an ordinance (Mr. Ritter advised one
would be required) to lower the out-of-city water rates by 20% which will be for consideration at the council meeting of
October 6, 2021.
Joe Rodriquez
Agenda Item #4c
Item/Subject: Consider authorizing City Manager/designee to amend the City of Huntsville Policy and
Procedures Manual- Section 7.01 to take affect starting October 1, 2020. Making June 19th an official
City Holiday and giving Veterans Day off to all Veterans employed with the City of Huntsville.
Initiating Department/Presenter: City Council
Presenter: Blake Irving, Councilmember Ward 3
Recommended Motion: Move to authorize City Manager/designee to amend the City of Huntsville
Policy and Procedures Manual- Section 7.01 to take affect starting October 1, 2020. Making June 19th
an official City Holiday and giving Veterans Day off to all Veterans employed with the City of Huntsville.
Strategic Initiative: Goal #2 - Communications - Provide public information outreach efforts that
inform the public of City operations, accomplishments and policies and allows for citizens input on
matters of Council policy.
Discussion: With Huntsville embracing its diverse culture, and Proclamation No. 2020-28 declaring June
19th as Juneteenth Day, as a Council, Ward 3 Councilmember Irving would like to add this as an official
Holiday for City employees. This addition will bring the number of holidays from the existing 10 (ten)
days to 11 (eleven) days and keep the 3 (three) floating holidays. The City observes July 4th as American
Independence Day, and June 19th is an observance of another Independence that is specific to the State
of Texas.
Huntsville is also home to many Veterans who put their lives on the line to ensure our freedom. The
City has many programs and activities to help them continue their life of service. The City of Huntsville
being one of the strong Veteran supporters and Veteran friendly. CM Irving would like to give back to
our own Veterans employed by the City of Huntsville by providing all Veterans the day off for Veterans
Day. All Veterans will submit proper identification to receive this day off.
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:
• Holiday Salary Comparison
9/15/20
Agenda Item: 4c
CITY COUNCIL AGENDA
City Holiday Survey '20
City Name Population # of Pd Holidays/Yr Holidays Off
Copperas Cove 32,706 13
New Yrs, MLK, President's Day, Good Friday, Memorial Day,
July 4th, Labor Day, Columbus Day, Veteran's Day,
Thanksgiving (2) & Christmas (2)
Nacogdoches 33,614 10
New Yrs, MLK, Good Friday, Memorial Day, July 4th, Labor
Day, Thanksgiving (2) & Christmas (2)
LaPorte 35,371 9
New Yrs, Good Friday, Memorial Day, July 4th, Labor Day,
Thanksgiving (2) & Christmas (2)
Texarkana 37,333 12
New Yrs, MLK, Good Friday, Memorial Day, July 4th, Labor
Day, Veteran's Day, Thanksgiving (2) & Christmas (3)
Duncanville 39,487 12
New Yrs, MLK, President's Day, Good Friday, Memorial Day,
July 4th, Labor Day, Thanksgiving (2) & Christmas (2) &
Employees Birthday
Coppell 41,941 10.5
New Yrs, MLK, Memorial Day, July 4th, Labor Day,
Thanksgiving (2.5), Christmas (2) & (1) Personal Day
Wylie 49,826 9
New Yrs, Good Friday, Memorial Day, July 4th, Labor Day,
Thanksgiving (2) & Christmas (2)
Cedar Hill 48,710 11
New Yrs, MLK, Good Friday, Memorial Day, July 4th, Labor
Day, Thanksgiving (2) & Christmas (2) & (1) Floating Holiday
San Marcos 63,071 12
New Yrs, MLK, President's Day, Memorial Day, July 4th,
Labor Day, Veteran's Day, Thanksgiving (2) & Christmas (2) &
(1) Floating Holiday
Conroe 84,378 11
New Yrs, MLK, Good Friday, Memorial Day, July 4th, Labor
Day, Thanksgiving (2), Christmas (2) & (1) Floating (9/11)
Bryan 84,021 12
New Yrs, MLK, Good Friday, Memorial Day, July 4th, Labor
Day, Thanksgiving (2), Christmas (2) & (2) Floating Holidays
College Station 113,564 11
New Yrs, MLK, Good Friday, Memorial Day, July 4th, Labor
Day, Thanksgiving (2), Christmas (2) & (1) Floating Holiday
Cleburne 30,230 11
New Yrs, MLK, Good Friday, Memorial Day, July 4th, Labor
Day, Thanksgiving (2) & Christmas (2) & Employees Birthday
SHSU (Staff Holidays)College 15
New Yrs, MLK, Engergy Conservation Day, Memorial Day,
July 4th, Labor Day, Thanksgiving (2) & Christmas (7)
Walker County County 14
New Yrs, MLK, President's Day, TX Independence Day, Good
Friday, Memorial Day, July 4th, Labor Day, Columbus Day,
Veteran's Day, Thanksgiving (2) & Christmas (2)
Huntsville 41,277 13
New Yrs, MLK, Good Friday, Memorial Day, July 4th, Labor
Day, Thanksgiving (2), Christmas (2) & (3) Floating Personal
Days