ORD 2011-46 - FY 11-12 Annual Budget Budget Approval 09-12-2011ORDINANCE NO. 2011 -46
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, 2011, THROUGH SEPTEMBER
30, 2012; 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;
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 2011 -2012 [Texas Local Government Code § 102.006];
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 §
102.103(a)];
WHEREAS
WHEREAS
WHEREAS
WHEREAS
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 § 102.103(b)];
on August 28th, the City Secretary published notice in the City's official newspaper of a
public hearing relating to the budget, which include one publication not earlier than the
30th day or later than the tenth day before the date of the hearing [Texas Local
Government Code § 102.0065];
on September 12`h, the City Council of the City of Huntsville held a public hearing
relating to the budget;
the budget for the year October 1, 2011, through September 30, 2012, 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
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, 2011, through September 30, 2012.
The appropriation for the ensuing fiscal year for operating expenses, debt service and
capital outlay budgets shall be fixed and determined as shown (see Exhibit A).
New projects described for fiscal year 2011 -2012 in the Capital Improvements budget
portion of the 2011 -2012 budget are approved at the cost level indicated, subject to the
availability of funding of project costs (see Exhibit Al).
City Council approves an increase in the monthly payment for a full -time employee to
the City's Medical Insurance Internal Service Fund from the current $600.00 per month
to $630.00 per month ($7,560.00), per budgeted position.
City Council approves a reduction in the budgeted TMRS rate from 18.55% to 14.5%
and a payment to TMRS of the savings difference from actual to budget to be applied
toward the City's unfunded liability.
City Council approves a transfer of an amount equal to three and one half (3.5 %) percent
of the gross revenues received during Fiscal Year 2011 -2012 from all water, wastewater,
and solid waste customers, as a transfer to the Street Special Revenue Fund to
compensate the City for the use of streets and rights -of -way by the Water, Wastewater,
and Solid Waste Funds.
City Council hereby has reviewed and approves the Fiscal and Budgetary Policies (See
Exhibit B).
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 (see Exhibits D).
SECTION 9: City Council approves fees, rates, charges and their associated revenue, which is
incorporated into the budget. Council authorizes the City Manager to make such
adjustments in fees, rates and charges from time to time as are in the City Manager's
discretion reasonable and necessary based upon facts then existing, including the
implementation of new fees, rates and charges or elimination of current ones; provided,
however, that a change of more than 25% or the implementation or elimination of any
fee, rate or charge shall be reported to the next regular Finance Committee meeting (see
Exhibit C).
Exhibit C authorizes water rate increases as noted for volumetric rates and an increase in
solid waste rates of $2.10 for residential.
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 2:
SECTION 3:
SECTION 4:
SECTION 5:
SECTION 6:
SECTION 7:
SECTION 8:
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 12th day of ber 2011.
ATTEST:
oodward, C - Sec e
APO i D T a FORM:
neider, City • ttorney
NTSVILLE, TEXAS
J. Turner, Mayor
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 12th day of September 2011.
THE CITY OF HUNTSVILLE, TEXAS
J. Turner, Mayor
ATTEST:
r
t_ Lee Woodward, City Secretary
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City of Jfuntsvide
FY 11 -12 Capital Funding Additions and Sources
Exhibit Al
Project Additions
11 -12 Amount
Funding Sources I
Library Generator
90,000
Hwy 75 South Indistrial Park
Airport Runway Lighting - Engineering & Construction
34,000
Airport - Engineering & Design
30,000
General Capital Projects - Fund 815
154,000
General Fund 101 I
Essex Dr.
442,000
Spur 59 Improvements
100,000
Hwy 75 South Indistrial Park
Future ROW Acquisitions
200,000
General Fund 101 I
Magnolia Way Street Renovations
319,000
General CIP 815
Streets Capital Projects - Fund 800
1,061,000
General Fund 101
Ave J North (SH -21)
65,000
Lake Road South (75S- Smither Dr.)
120,000
Hwy 75 South Indistrial Park
Sidewalks Capital Projects - Fund 814
185,000
General Fund 101 I
Airport Runway Lighting - Engineering & Construction
306,000
Airport - Engineering & Design
270,000
Hwy 75 South Indistrial Park
General Capital Projects - Fund 815
576,000
Grant Funds I
Hwy 75 South 24" Radial CDBG
353,000
Water Capital Projects - Fund 701
353,000
Grant Funds
Service Center Fuel Tanks
199,000
Kate Barr Ross 270' Field
250,000
Hwy 75 South Indistrial Park
General Capital Projects - Fund 815
79,000
General Fund 101
General Capital Projects - Fund 815
370,000
General CIP 815
New Water Well
600,000
Pleasant Street
41,000
Hwy 75 South Indistrial Park
100,000
Palm Street Water Plant Office Renovations
75,000
Hwy 75 South 24" Radial CDBG
50,000
Automated Meters Program
100,000
Archer Street 6" Replacement
27,000
Water Capital Projects - Fund 701
993,000
Water 220 I
TRA Plant Upgrades
2,800,000
Water Capital Projects - Fund 701
2,800,000
Water 220 /Bond I
Y: \finance \Budget Folder- Secured \Budget 11 -12 \Budget Pages \New Capital Additions and Funding Sources 11- 12.xlsx 9/8/2011
Project Additions
1 11 -12 Amount 1 Funding Sources
Old Colony Road V
425,000
General
Old Colony Road VI
450,000
48,000
Avenue Q Area Sewer Rehabilitation
101,000
Solid Waste
Avenue M /22nd St. Sewer Renovations
30,000
Wastewater 221
BOT/TDCJ Area Interceptor
86,000
Grants
Wastewater Capital Projects - Fund 702
1,092,000
Wastewater 221
Town Creek Watershed Study Phase II
60,000
General
Tanyard Creek Watershed Study
60,000
48,000
Town Creek Drainage
2,000,000
Solid Waste
Wastewater Capital Projects (Drainage) - Fund 701
120,000
Wastewater 221
Wastewater Capital Projects (Drainage) - Fund 702
2,000,000
Grants
Transfer Station Tipping Floor
300,000
Solid Waste Capital Projects - Fund 703
300,000
City Software
GF Contributions
General
32,000
Water
48,000
Wastewater
48,000
Solid Waste
32,000
Imaging
Solid Waste Contribution
Court Security
15,000
General Fund
100,000
IS Computer CIP - Fund 842
275,000
11 -12 Total Uses of Funds
10,358,000
Solid Waste 224 1
General Fund 101
Water 220
Wastewater 221
Solid Waste 224
Court Technology 602
General Fund 101
Total Sources Summary
GF Contributions
$ 550,000
GF Contributions - Streets
$ 1,061,000
Water Contributions
$ 1,041,000
Water Contributions /Bond
$ 2,800,000
WW Contributions
$ 1,260,000
Solid Waste Contribution
$ 332,000
Court Technology
$ 15,000
General CIP
$ 370,000
Grant Funds
$ 2,929,000
Total
$ 10,358,000
Y: \finance \Budget Folder- Secured \Budget 11 -12 \Budget Pages \New Capital Additions and Funding Sources 11- 12.xlsx 9/8/2011
CHANGES MADE TO THE BUDGET AS OF SEPTEMBER 12, 2011
• TRAVEL AND TRAINING BUDGET (55080) REDUCED BY $59,736 AND FUTURE APPROPRIATIONS
INCREASED BY THE SAME AMOUNT
• MEMBERSHIPS /SUBSCRIPTIONS (55090) REDUCED BY $13,087 AND INCREASED PURCHASED
SERVICES /CONTRACTS (55070) BY $8,488 AND INCREASED ATTORNEY FEES /COURT COSTS
(55060) BY $4,599
• BUILDING INSPECTOR ($79,320) AND OFFICE OF COMMUNITY DEVELOPMENT (BENEFITS) WILL
BE REDUCED AND FUTURE APPROPRIATIONS TO BE INCREASED; REPLACEMENT FUNDS WILL BE
REDUCED ($20,000)
Proposed Travel and Training Budget
FY 2011 -12
Division Fund /Division 10 -11 11 -12 Adj 11 -12 Adl,
Budget Budget Budget
CITY COUNCIL 101 -112 7,125 10,000 (2,875) 7,125
OFFICE OF CITY MANAGER 101 -113 1,969 10,625 (8,656) 1,969
OFFICE OF CITY SECRETARY 101 -114 7,125 7,495 (370) 7,125
OFFICE OF CITY JUDGE 101 -117 375 655 (280) 375
HUMAN RESOURCES 101 -150 3,922 3,236 0 3,236
RISK & SAFETY MANAGEMENT 101 -151 1,875 2,850 (975) 1,875
FINANCE 101 -210 14,137 13,380 0 13,380
MUNICIPAL COURT 101 -231 3,649 4,130 (481) 3,649
PURCHASING 101 -234 3,281 2,100 0 2,100
PUBLIC UTILITIES ADMIN 101 -320 4,763 6,181 (1,418) 4,763
GARAGE OPERATIONS 101 -389 600 10,872 (5,175) 5,697
COMMUNITY SERVICES ADMIN 101 -420 2,835 3,330 (495) 2,835
RECREATION 101 -421 3,688 5,760 (2,072) 3,688
PARKS MAINTENANCE 101 -422 5,496 5,471 0 5,471
AQUATIC CENTER 101 -424 1,782 2,140 (358) 1,782
BUILDING SERVICES 101 -444 2,490 3,320 (830) 2,490
POLICE 101 -551 29,130 33,226 (1,725) 31,501
FIRE 101 -552 17,250 30,600 (11,750) 18,850
INFORMATION TECHNOLOGY 101 -640 10,125 10,100 0 10,100
GIS 101 -642 7,680 7,286 0 7,286
LIBRARY SERVICES 101 -647 1,160 2,434 (1,274) 1,160
PUBLICWORKSADMIN 101 -700 9,709 16,145 (4,200) 11,945
CUSTOMER SERVICE - SERVICE CENTER 101 -715 3,046 3,136 (90) 3,046
PLANNING 101 -716 4,129 4,172 (43) 4,129
ENGINEERING 101 -717 5,325 5,275 0 5,275
OFFICE OF COMMUNITY DEVELOPMENT 101 -718 0 10,000 (4,200) 5,800
SURVEYING 101 -719 4,470 4,590 (120) 4,470
CENTRAL INSPECTION 101 -724 5,512 7,350 (1,838) 5,512
HEALTH 101 -725 3,087 3,150 (788) 2,362
MAIN STREET 101 -839 2,250 2,500 (250) 2,250
GIFT SHOP @ VISITOR CENTER 101 -883 0 750 0 750
UTILITY BILLING 220 -212 2,250 2,550 (300) 2,250
WATER PRODUCTION 220 -361 1,496 1,100 0 1,100
WATER DISTRIBUTION 220 -362 3,487 3,365 0 3,365
METER READING 220 -368 371 275 0 275
CONSTRUCTION CREW 220 -396 1,762 2,350 (550) 1,800
WASTEWATER COLLECTION 221 -363 4,852 6,495 (1,643) 4,852
AJ BROWN WWTP 221 -364 990 1,705 (715) 990
NB DAVIDSON WWTP 221 -365 742 1,155 (413) 742
ROBINSON CREEK WWTP 221 -366 619 1,430 (811) 619
ENVIRONMENTAL SERVICES 221 -367 3,944 3,914 0 3,914
COMMERCIAL COLLECTION 224 -373 562 540 0 540
SOLID WASTE DISPOSAL 224 -374 825 590 0 590
RESIDENTIAL COLLECTION 224 -375 562 590 0 590
STREETS 603 -323 3,532 4,710 (1,000) 3,710
DRAINAGE MAINTENANCE 603 -384 750 1,000 (250) 750
SCHOOL RESOURCE OFFICERS 612 -555 5,696 6,711 (1,015) 5,696
VISITOR & ARTS CENTER SRF 618 -840 1,312 1,550 (238) 1,312
TOURISM 663 -881 5,662 8,200 (2,538) 5,662
$ 207,399 $ 280,489 $ (59,736) $ 220,753
9/7/2011
Proposed Memberships /Subscriptions Budget
FY 2011 -12
Division Fund /Division 10 -11 11 -12 AJ 11 -12 Adi
Budget Budget Budget
CITY COUNCIL 101 -112 10,776 9,991 0 9,991
OFFICE OF CITY MANAGER 101 -113 1,552 1,552 0 1,552
OFFICE OF CITY SECRETARY 101 -114 1,000 830 0 830
OFFICE OF CITY JUDGE 101 -117 50 50 0 50
HUMAN RESOURCES 101 -150 1,048 909 0 909
RISK & SAFETY MANAGEMENT 101 -151 1,387 1,660 0 1,660
FINANCE 101 -210 4,285 3,785 0 3,785
MUNICIPAL COURT 101 -231 346 346 0 346
PURCHASING 101 -234 1,119 1,454 0 1,454
PUBLIC UTILITIES ADMIN 101 -320 2,515 2,515 0 2,515
GARAGE OPERATIONS 101 -389 0 1,488 (1,488) 0
COMMUNITY SERVICES ADMIN 101 -420 720 1,080 0 1,080
RECREATION 101 -421 427 1,070 0 1,070
PARKS MAINTENANCE 101 -422 425 345 0 345
AQUATIC CENTER 101 -424 100 200 0 200
POLICE 101 -551 495 1,240 0 1,240
FIRE 101 -552 1,850 1,850 0 1,850
INFORMATION TECHNOLOGY 101 -640 500 500 0 500
GIS 101 -642 640 490 0 490
LIBRARY SERVICES 101 -647 14,601 15,196 0 15,196
PUBLIC WORKS ADMIN 101 -700 2,676 3,497 0 3,497
CUSTOMER SERVICE - SERVICE CENTER 101 -715 185 185 0 185
PLANNING 101 -716 1,317 1,437 0 1,437
ENGINEERING 101 -717 784 784 0 784
OFFICE OF COMMUNITY DEVELOPMENT 101 -718 0 7,000 (7,000) 0
SURVEYING 101 -719 1,322 1,322 0 1,322
CENTRAL INSPECTION 101 -724 1,065 1,015 0 1,015
HEALTH 101 -725 430 430 0 430
MAIN STREET 101 -839 774 774 0 774
WATER PRODUCTION 220 -361 180 490 0 490
WATER DISTRIBUTION 220 -362 1,144 1,144 0 1,144
METER READING 220 -368 240 240 0 240
CONSTRUCTION CREW 220 -396 749 749 0 749
WASTEWATER COLLECTION 221 -363 929 882 0 882
AJ BROWN WWTP 221 -364 240 120 0 120
NB DAVIDSON WWTP 221 -365 240 60 0 60
ROBINSON CREEK WWTP 221 -366 180 180 0 180
ENVIRONMENTAL SERVICES 221 -367 853 853 0 853
COMMERCIAL COLLECTION 224 -373 475 475 0 475
SOLID WASTE DISPOSAL 224 -374 300 300 0 300
RECYCLING 224 -377 375 375 0 375
STREETS 603 -323 335 335 0 335
DRAINAGE MAINTENANCE 603 -384 60 60 0 60
VISITOR & ARTS CENTER SRF 618 -840 515 620 0 620
TOURISM 663 -881 3,500 7,194 (4,599) 2,595
Total $ 62,704 $ 77,072 ($13,087) $63,985
9/7/2011
Exhibit B FY1112
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 principals 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:
Street Municipal Court Special Revenues
Library Special Revenues Airport Special Revenues
Police Special Revenues Hotel/Motel Tax & Arts
Exhibit B FY 11 12
Proprietary Funds:
Enterprise Funds:
Water
Solid Waste
Internal Service Funds:
Medical Insurance
Equipment Replacement
Permanent Funds:
Library Endowment
Oakwood Cemetery Endowment
Wastewater
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 Tong -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. Encumbrance Accounting. The City shall utilize encumbrance accounting for its
Governmental fund types, 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.
Exhibit B FY 11 12
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. In the base budget, the City Manager may elect
to include decision package items, or replacement items with a cost of up to
$5,000, and may include in the base budget scheduled replacements in the
Equipment Replacement Fund.
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 filed with the City Secretary when it is
submitted to the City Council.
2. Modified Incremental Approach. The operating budget for the prior year shall
serve as the starting point for budget estimates. Increases or decreases shall be
detailed in supporting documents. Detail supporting sheets shall be prepared for
each object series.
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
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
3
Exhibit B FY 11 12
least two notices will be given and a public hearing 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:
Fund - General Fund
Department - Public Safety
Division - Police
Object - Salaries, Other Pay and Benefits
Line Item - Regular Salaries
Exhibit B FY 11 12
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. Line Item. A detail budget supporting requested allocations shall be presented to
City Council for review.
4. 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.
5. 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.
6. 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.
7. Self Sufficient Enterprise Funds. Enterprise operations, Water, Wastewater, Solid
Waste, Golf Course Operations, and Oakwood Cemetery Operations, are intended to
be self- sufficient.
8. 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.
9. 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.
10. 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.
Any unencumbered appropriations at year -end may be appropriated by the
governing body in the subsequent year. The original budget is amended to include
the re- appropriations. Capital projects budgets do not lapse at year -end.
11. Performance Indicators and Productivity Indicators. The annual budget, where
possible, will utilize performance measures and productivity indicators. ICMA
benchmarking will be used to the extent possible.
D. BALANCED BUDGET. The budget shall be balanced using a combination of current
revenues and available funds [defined in Section III(a)]. Current year operating
expenses shall be funded with current year generated revenues. Proprietary Funds with
outstanding revenue bonds shall not rely on funds available from the prior year to
balance the operating budget. No budget shall be adopted unless the total of estimated
revenues, income, and funds available is equal to or in excess of such budget.
5
Exhibit B FY 11 12
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. A
quarterly budget review shall be presented to City Council in sufficient detail to allow
decision - making.
F. CONTROL. Operating Expenditure Control is addressed in Section V of these Policies.
G. CONTINGENT APPROPRIATION. The General Fund, Water Fund, Wastewater Fund,
and Solid Waste Fund shall 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 V, B 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. The City shall pay the cost of employee
coverage, and the dependent coverage may be purchased at the employee's cost.
Changes in benefits shall be at the recommendation of the Trustees of the Employee
Medical Plan.
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, and the City's match will be established at a rate that will not exceed
15.54 %. Retaining the annual repeating updated service credits will be a priority in
the funding. The difference between the TMRS rate and the 15.54% budget shall be
deposited to the benefit of the employees in a supplemental retirement plan. Any
budgeted funds not spent 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.
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 funds excluding Special
Revenue Funds, Internal Service Funds, and Capital Projects Funds shall be maintained
at a minimum amount of 16.67% of the annual budget (excluding transfers to capital
projects) for each fund unless specifically identified in this section. Unallocated reserves
shall not be used to support on -going operating expenditures. This reserve is defined as
Exhibit B FY 11 12
unreserved current assets Tess 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 one time non - operating expenditures, the funds must be specifically
appropriated by the City Council.
D. 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, with the exception of the Hotel /Motel Tax and Arts Special
Revenue Fund. The Hotel /Motel Tax and Arts Special Revenue Fund reserves shall be
at least 10% of the annual tourism and Visitors Center Operations budget or at a level
approved by City Council. Adequate reserves are essential due to the cyclical nature of
this revenue source.
E. CAPITAL PROJECT FUNDS. Monies in the Capital Projects Funds shall be expended
in accordance with an approved budget. There is no reserve requirement. Interest
income will be used to offset construction costs or interest expense on the debt issue.
F. 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.
G. GENERAL OBLIGATION DEBT SERVICE FUND AND INTEREST ACCOUNTS.
Reserves in the General Obligation Debt Service Fund and Water and Wastewater
Funds 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.
H. DEBT COVERAGE RATIOS. Debt Coverage Ratios shall be maintained as specified by
the bond covenants.
I. MEDICAL INSURANCE FUND RESERVE. A reserve shall be established in the City's
Health Insurance Fund to avoid potential shortages. Such reserve shall be used for no
purpose other than for financing losses under the insurance program. Excess reserves
shall be used to reduce premiums charges; an insufficient reserve shall be increased by
adjustments to the premium. The reserve shall be approximately 25 % of anticipated un-
reimbursed claims for the budget year.
Exhibit B FY 11 12
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 revenue are collected according to budgets and plans.
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 in the Police Division 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. A ninety -six percent (96 %) collection rate shall serve each year
as a goal for tax collections and the budgeted revenue projection. Property tax rates
shall be maintained at a rate adequate to fund an acceptable service level. Based upon
taxable values, rates will 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.
Exhibit B FY 11 12
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. This
policy does not preclude drawing down cash balances to finance current operations if
legal requirements of the bond covenants are met.
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 and reported to the City Council quarterly.
J. REVENUE PROJECTIONS. The City shall project revenues for a five -year period and
will update this projection annually. 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. Personnel allocations may not be changed without the approval of City
Council.
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. CENTRAL CONTROL. Unspent funds in salary (except temporary, part-time, or
overtime accounts) and capital allocation object codes may not be spent for any purpose
other than their specifically intended purpose without prior authorization of City Council.
Salary amendments must be reported to council.
D. CITY MANAGER'S AUTHORITY TO AMEND BUDGET.
1. Reserve for Future Allocation. The City Manager may authorize transfers of
Exhibit B FY 11 12
$25,000 or less from the budgeted Reserve for Future Allocation without prior City
Council approval. The amount will be reported to the Council as an informational
item. The cumulative total of transfers approved by the City Manager, without prior
Council approval, may not exceed 25% of the budgeted Reserve for Future
Allocation.
2. Transfer Between Line Items. The City Manager may, without prior City Council
approval, authorize transfers between budget line items within a fund and may
authorize increases of $3,000 or less with the exception that:
a) Regular personnel allocations may not be changed, except increases in
temporary, part-time, or overtime accounts
b) Salary and benefit saving, including those due to vacancies may not be
transferred from the object code;
c) The expenditure is not budgeted;
d) The city administration proposes to award the bid to other than the low bidder
meeting specifications;
c) Savings from City Council - approved capital purchases may not be spent for
other than their intended purpose; and
d) Additions to the Fleet and additional computer equipment may not be purchased
from equipment replacement funds.
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. Change orders approved by
the City Manager shall be presented to Council at their next regularly scheduled
meeting.
4. Reports to Council. Transfers from the reserve for future allocation or transfers
between divisions authorized by the City Manager shall be reported to City Council
on a quarterly basis for review by the City Council as part of the regular quarterly
budget review.
E. 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 will be increased to
$50,000. Separate and sequential purchases of $50,000 and more require city council
approval. Purchases from $25,000 to $50,000 shall be reported quarterly to city council
as informational items. The following shows a summary of approval requirements for
purchases.
Exhibit B FY 11 12
APPROVAL REQUIREMENTS FOR PURCHASES
Dollar Figure
Supervisor
Or Director
Designee
Department
Director
Purchasing
Agent
City
Manager
City
Council
Less than $1,000
✓
$1,000 to less than
$3,000
(Quotation Form)
✓
✓
$3,000 to $8,000
✓
✓
✓
$8,000 to less than
$50,000 (Purchase
Order)
✓
✓
✓
✓
$50,000 or more
✓
✓
✓
✓
✓ Denotes signature approval
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.
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.
Exhibit B FY 11 12
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.
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. Debt shall be
used only to acquire major assets. 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. Capital project status
reports shall be presented to the City Council at least quarterly.
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
• efficiency improvement
• policy area projects
• project's expected useful life
• availability of state /federal
grants
• prior commitments
• maintenance projects
• project provides a new service
• extent of usage
• effect of project on operation and
maintenance costs
• elimination of hazards
VIII. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING
A. ACCOUNTING. The Finance Director is responsible for establishing the Chart of
Accounts and for recording financial transactions.
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
12
Exhibit B FY 11 12
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 Officer's 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.
IX. INVESTMENTS AND CASH MANAGEMENT
A. DEPOSITORY BANK. A Depository Bank shall be selected by the City Council for a
two -year period. 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.
13
Exhibit B FY 11 12
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.
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 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
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 a 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
Exhibit B FY 11 12
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 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.
Exhibit B FY 11 12
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
$ 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
Exhibit B FY 11 12
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 Toss, 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. Overseeing of the City's Medical Insurance Health Plan;
D. Retirement Policy review;
E. Employee Benefit Policy review; and
F. Review of liability insurance coverages.
Exhibit C
City of Huntsville
Schedule of Fees and Charges
Fiscal Year 2011 -2012
Office of City Secretary
Alcohol Beverages Licenses and Permits (City Fee Only)
Beer Retailer's Off Premise License 160
Beer Retailer's On Premise License 1150
Wne and Beer Retailer's Off Premise Permit $60
Local Distributor's License 175
Beverage Cartage Permit 120
Caterer's Permit $500
Local Distributor's Permit $100
Mixed Beverage Permit (at 3rd Renewal) $750
Package Store Permit 1500
Package Store Tasting Permit $25.00
Wne Only Package Store Permit 175.00
General Class B Wholesaler's Permit 1300
Late Hours Permit $150
Copies of Public Information
Certificate of Compliances
City Limits
ETJ
State
Variable: Refer to Texas Administrative Code State
$25
$25
Public Works
Ordinance
Minor Plats (includes amending & replete) 1100 Ordinance
Preliminary Plat $150 Ordinance
Final Plats (includes amending & replete) 1150 Ordinance
Filing Fees Actual Cost Past Practice
Zoning -Board of Adjustment 1250 Ordinance
Conditional Use Permit 1150 Ordinance
Variance Request for plat 1150 Ordinance
GIS/Mlcrestation Map Past Practice
Letter Size(8.5" x 11 ") 11
Legal (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 ") 110
FY 11 12
Exhibit C
City of Huntsville
Schedule of Fees and Charges
Fiscal Year 2011 -2012
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 & Commercial)
Less than $1,000
$1,001 10 $50,000
$50,001 to $100,000
$100,001 to $500,000
Over $500,001
Plan Checking Fee
Less than $70,000 valuation
Over $70,000 valuation
Electrical Permits
Fee for issuing each permit
Roughing in work
Minimum Fee
First Four Circuits
All Above Four Circuits
Replacement of Service Entrance Equipment
60 amp or less, includes meter loop
61 to 100 amp, includes meter loop
101 to 200 amp, includes meter loop
201 to 400 amp, includes meter loop
401 to 600 amp, includes meter loop
Over 600 amp, includes meter loop
Motor Generation
First 2 motors below 1 HP each
Additional motors below 1 HP
First 2 motors 1 to 5 HP each
Additional motors 1 to 5 HP
First 2 motors 6 to 10 HP each
Additional motors 610 10 HP
First 2 motors 11 to 24 HP each
Additional motors 11 to 24 HP
First 2 motors over 25 HP each
Additional motors over 25 HP
Based on Valuation
$25 inspection fee
$25 for the first $1,000 + $5 per each additional $1,000
$260 for first $50,000 + $4 per each additional $1,000
$460 for first $100,000 + $3 per each additional $1,000
$1,660 for first $500,000 + $2 per each additional $1,000
No Fee
One -half of building permit fee
$25
$10
$8
$1 each
$6
$8
$10
$12
$14
$20
$3
$1 each
$6
$3 each
$8
$4 each
$10
$5 each
$14
$7 each
Ordinance
Ordinance
Ordinance
FY1112
Exhibit C
City of Huntsville
Schedule of Fees and Charges
Fiscal Year 2011 -2012
Miscellaneous Fees
Electric Welders
Electric Range
Motion Picture Projector
Circuit for Sign and Outline Lighting
Temporary Service
Minimum Fee for Repairs and Alteration
Additional Motor
Electric Dryer
Mobile Home Connection
Air Conditioner
A/C Disconnect
Irrigation Permits
Fee for issuing each permit
1 to 5 sprinkler heads
Over 5 sprinkler heads
Fire Standpipe /Line & Sprinkler Permits
Fee for issuing each permit
1 to 5 sprinkler heads
Over 5 sprinkler heads
Fire Alarm
Less than $1,000
51,001 to 550,000
$50,001 to $100,000
$100,001 to $500,000
Over 5500,001
Fire Suppression System
Less than $1,000
51,001 to 550,000
550,001 to $100,000
$100,001 to 5500,000
Over $500,001
Plumbing Permits
Fee for issuing each permit
Plumbing fixture or trap or set of fixtures of one trap
House Sewer
House Sewer having to be repaired
Cesspool
Septic Tank, Seepage Pit, or Drain Field
Water Heater and /or Vent
Gas Piping System of 1 to 5 Outlets
Gas Piping System of 6 or more Outlets
Water Piping Installation for Water Treating Equipment
Vacuum Breakers, Backflow Prevention Devices
1 to 5
Over 5
Mobile Home Connection
Mobile Home Connection with Gas
Mechanical Permits
Fee for issuing each permit
Heating, Ventilating Duct, Air Conditioner, Refrigeration
Repairs, Alterations, Additions to an Existing System
Over $500 valuation
Re- Inspection Fee
Sign Permits
Temporary Sign Permits (by Non - Profits)
Public Improvement Permits
$5
$5 each
$5 each
$5 each
$10
$5
$4 each
$5 each
$5
$5
$5
$25
$2
$.20 each
$25
$2
$.50 each
Based on evaluation
$25 Inspection fee
$25 for the first $1,000 + $5 per each additional 51,000
$260 for first 550,000 + $4 per each additional $1,000
$460 for first $100,000 + 53 per each additional 51,000
$1,660 for first 8500,000 + 52 per each additional 51,000
Based on evaluation
525 Inspection fee
$25 for the first $1,000 + $5 per each additional $1,000
$260 for first 550,000 + $4 per each additional $1,000
$460 for first $100,000 + 83 per each additional 51,000
$1,660 for first 5500,000 + $2 per each additional $1,000
$25
$2.50 each
$5 each
$5 each
$5 each
$10 each
$2.50 each
$5
$1 per outlet
$5
$2.50
1.50 each
$5
57
$25
$10 for first $1,000 valuation + $2 per each additional $1,000
$5 + $2 per each $1,000 valuation
$30
25Q /sq ft. (minimum 55) + $1 /1inear ft. of sign height + $25 /permit
No Charge (Limit of 2 Per Year)
3% of valuation of public improvements
Ordinance
Ordinance
Ordinance
Ordinance
Ordinance
Ordinance
FY1112
Exhibit C
City of Huntsville
Schedule of Fees and Charges
Fiscal Year 2011 -2012
Grading and Excavation Plan Checking Fee
Less than 5,000 cubic yards
5,000 to 10,000 cubic yards
10,001 to 100,000 cubic yards
100,001 to 200,000 cubic yards
Over 200,001 cubic yards
Grading and Excavation Permits
Less than 50 cubic yards
51 to 100 cubic yards
101 to 1,000 cubic yards
1,00110 10,000 cubic yards
10,001 to 100,000 cubic yards
Over 100,001 cubic yards
Other Permits
On Site Sewage Facility
Moving
Demolition
Vendor /Peddler Permits
Contractor Registration Fees
Builder Residential & Commercial
Master Electrician
Residential Wireman Electrician
Journeyman Electrician
Electrical Sign- Master
City Sign Contractor
HVAC
Irrigator
Electrical Contractor
Fire Alarm, Fire Sprinkler, & Fire Extinguisher
Master Plumber
Journeyman Plumber
Tradesman Plumber
Journeyman Sign Electricians
Residential Appliance Installers
Swimming Pool /Spa Annual Permits
Food Service Establishment Annual Permit
1 -3 Employees
4+ employees
Late Permit Fee
No Fee
$20
$20 for first 10,000 CY + $10 per each additional 10,000 CY
$110 for first 100,000 CY + $6 per each additional 10,000 CY
$170 for first 200,000 CY + $3 per each additional 10,000 CY
$10
$15
$15 for first 100 CY + $7 per each additional 100 CY
$78 for first 1,000 CY + $6 per each additional 1,000 CY
$132 for first 1,000 CY + $27 per each additional 1,000 CY
$375 for first 10,000 CY + $15 per each additional 1,000 CY
$200
$100
$25
$50 - valid 12 months in 1 location (separate permit required for each loaction)
Ordinance
Ordinance
Ordinance
Recommended by TCEQ
$60
$60
$12
$12
$60
$50
$60
$60
No Fee
$60
No Fee
No Fee
No Fee
$12 - contingent upon building code adoption
$12 - contingent upon building code adoption
$100
Based on # of employees
$150
$250
1/2 of permit fee
Ordinance
Ordinance
Ordinance
FY 11 12
Exhibit C
City of Huntsville
Schedule of Fees and Charges
Fiscal Year 2011 -2012
Food Service Establishments Pre - Opening Fee $60 Ordinance
Food Service Establishments Re- Inspection Fee $55 Ordinance
Itinerant Restaurant Permit (1 -3 days) No Fee
Non - Profit Organizations, Annual Permit $60 Ordinance
Mobile Food Units Annual Permits $250 Ordinance
Food Handler ID Card $5 Ordinance
Duplicate Food Handler Cards $2 Ordinance
Daycare Facilities Annual Permit $150 Ordinance
Late Permit Fee 1/2 of permit fee
Culverts /Driveways Installations Actual Cost Past Practice
FY1112
Exhibit C
City of Huntsville
Schedule of Fees and Charges
Fiscal Year 2011 -2012
Recreation Services
Softball /Baseball Field
Youth Leagues 55 per person
Aduft Leagues 510 per person
Day Rental, Private Use $20
Night Rental, Private Use $35
Soccer Field
Youth Leagues $5 per person
Adult Leagues $10 per person
Day Rental, Private Use 520
Night Rental, Private Use 535
Martin Luther King, Jr Center
Rental Fee $150 per day
Security Deposit 5100
Park Rental
Park Permit 5150
Deposit $100
Cancellation (6 -15 Business Days Prior) 1/2 of Deposit returned
Cancellation (Within 5 Business Days) No Deposit returned
Aquatic Center
Admission
Adults Age 12 and Up $2
Children Age 6 to 11 51.50
Children Age 5 or less No Charge
a
Season Pass
Adults Age 12 and Up $40
Children Age 6 to 11 530
Family $100 for first four members + 520 per each additional member
Swimming Lessons 535 per course
Water Aerobics 535 per session Advisory Board Review
Pool Rental- Private $75 per hour (maximum 2 hours) Advisory Board Review
Program Fees Varies Partial Cost Recovery
Advisory Board Review
Advisory Board Review
Advisory Board Review
Advisory Board Review
Advisory Board Review
Advisory Board Review
Advisory Board Review
Cemetery Operations
Cemetery Space
Plot $1,000
Filing Fee Actual Cost
Landscape Repair Fee after Exhumations 5250
Ordinance
FY 1112
Exhibit C
City of Huntsville
Schedule of Fees and Charges
Fiscal Year 2011 -2012
Aleffr Library Services
Fines
Overdue Books, magazines, music cds 10¢ per day
Overdue Audio books and videos $1 per day
t Iglu The maximum fine for any item is 510; customers with more than 55 in fines will not be allowed to borrow materials.
Advisory Board Review
Copies Advisory Board Review
Printer, copier and microform machine 15¢ per page
Sales
Donated Videos
Donated Audio books
Donated Hardback books
Donated Paperback books
Donated Children's hardback books
Donated Children's paperback
Walker County Stories
Blank Diskettes
Blank CDs
$1 each
$1 each
$1 each
25¢ each
50¢ each
25¢ each
$5 per CD
$1 each
$1 each
Replacement Costs
Library Card $1
Lost or damaged books, audio books, videos, etc. Cost (higher of what we paid or cost today) +$10
Lost or damaged Audio book CD or Cassette (not full set) Cost (higher of what we paid or cost today) +$10
Pocket $1
Barcodes /item $1
Security Patch $1
Book jacket $1
Spine label $1
Rental Fees
Rental of Microfilm from Family History Library
Rental of Microfiche from the Family History Library
$5.50 per rental or renewal
$15.00 per rental or renewal
Past Practice
Advisory Board Review
FY 11 12
Exhibd C
City of Huntsville
Schedule of Fees and Charges
Fiscal Year 2011 -2012
Tourism & Cultural Services
Historical Driving Tour
The Heritage Home Tour
Rental of Brown Wynne Gallery
Non- Profit
Private
Rental of Meeting Room
Non - Profit
Private
$3 per person - 830.00 minimum
$6 per person - $60.00 minimum
845 per hour -2 hr minimum
$50 per hour - 2 hr minimum
$35 per hour -2 hr minimum
$40 per hour - 2 hr minimum
Rental of Porch and Grounds
Non - Profit 8400 Total Up to 8 hrs
Private $500 Total Up to 8 hrs
Rental of Wynne House and Grounds
Non - Profit $800 Total Up to 8 hrs
Private 81,000 Total Up to 8 hrs
Rental of Wynne House
Non - Profit $400 Total Up to 4 hrs
Private 8500 Total Up to 4 hrs
Security Deposits
regular business hours
Outside regular business hours
No deposit required
50% of fee
Security Fee (Refundable)
40+ persons and outside regular business hours $150
Wynne Home China $100
Rental of China (See also "Security Fee ") $25
Beverages
Coffee (8 - 12 cups) 85
Coffee (30 cups) 815
Tea (8 - 12 cups) $5
Tea (30 cups) $15
Water (12 oz bottle) $1 per bottle
Rental of Audio Visual (not currently available)
Television set and video player 815
Projector and screen $15
Flip Chan pads $10
Floor lectern /Easel/Microphone No Charge
Advisory Board Review
Advisory Board Review
Advisory Board Review
Advisory Board Review
Advisory Board Review
Advisory Board Review
Advisory Board Review
Advisory Board Review
Advisory Board Review
Advisory Board Review
Program Fees Varies Partial Cost Recovery
FY1112
FY 11 12
Exhibit C
City of Huntsville
Schedule of Fees and Charges
Fiscal Year 2011 -2012
Public Safety
Sexually Oriented Business Permit
Original Application
Renewal Application
5400
5200
Wrecker Permit $25Iyr per holder + $55/yr per tow truck
TaxilChauffer $100 /yr per taxi
Accident Report 53 57 online (54 provider fee)
Offense Report 51 per page
Fingerprinting Fee 510 per person
Alarm Fees
0-5 False Alarms
6 -10 False Alarms
Over 10 False Alarms
No Charge
510 each
$30 each
Ordinance
Ordinance
Ordinance
Ordinance
Ordinance
Past Practice
Ordinance
Tow Thick Companies Fee Allowed to be Charged by Tow Truck Company' Not Collected by City'
All Police Directed Tows 5125.00 Ordinance
Debris Removal 525.00 Ordinance
Waiting, per hour after the first hour 525.00 Ordinance
Storage for vehicles 25 in length and under per day 520.00 Ordinance
Storage for vehicles > 25 in length, per day $35.00 Ordinance
Notification 550.00 Ordinance
Preservation 520.00 Ordinance
Exhibit C
City of Huntsville
Schedule of Fees and Charges
Fiscal Year 2011 -2012
Water Services
Single Family Residential Ordinance
First 3,000 gallons
75 inch meter
1 inch meter
1.5 inch meter
2 inch meter
3 inch meter
4 inch meter
6 inch meter
8 inch meter
Between 3,000 and 7,000 gallons
Between 7,001 and 13,000 gallons
Over 13,000 gallons
$13 per month
$19 per month
$25 per month
$41.50 per month
$163 per month
$208 per month
$312 per month
$433 per month
$3.04 per thousand gallons
$3.34 per thousand gallons
$3.80 per thousand gallons
Jointly Metered Residential /Multi- Family Ordinance
First 3,000 gallons
75 inch meter
1 inch meter
1.5 inch meter
2 inch meter
3 inch meter
4 inch meter
6 inch meter
8 inch meter
jointly Metered Residential
Between 3,000 and 7,000 gallons
Over 7,001 gallons
$13 per month
$19 per month
$25 per month
$41.50 per month
$163 per month
$208 per month
$312 per month
$433 per month
$3.04 per thousand gallons
$3.80 per thousand gallons
Multi- Family
Over 3,000 gallons $3.80 per thousand gallons
Commercial Metered Ordinance
First 3,000 gallons
.75 inch meter
1 inch meter
1.5 inch meter
2 inch meter
3 inch meter
4 inch meter
6 inch meter
8 inch meter
$15 per month
$21 per month
$27 per month
$43.50 per month
$165 per month
$210 per month
$315 per month
$435 per month
Over 3,000 gallons $3.80 per thousand gallons
FY1112
Exhibit C
City of Huntsville
Schedule of Fees and Charges
Fiscal Year 2011 -2012
Institutional Users Ordinance
First 3,000 gallons
.75 inch meter
1 inch meter
1.5 inch meter
2 inch meter
3 inch meter
4 inch meter
6 inch meter
8 inch meter
Over 3,000 gallons
$15 per month
$21 per month
$27 per month
$43.50 per month
$165 per month
$210 per month
$315 per month
$435 per month
$4.10 per thousand gallons
Fire Hydrant Meters Past Practice
First 3,000 gallons
Over 3,000 gallons
$165 per month
$4.10 per thousand gallons
Note: Water rates for customers outside the city limits are calculated in the same manner as rates for customers within Ole city limits; however, a multiplier of 1.25
shall be applied to the cost components listed above.
Single Family /Jointly Metered Residential
First 2,000 gallons
Over 2,000 gallons
Wastewater Services
$13 per month
$4.87 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 fo the nearest 100 gallons. Customers
moving onto an existing, or newly constructed, single family residential unit shall be billed for sewer at eighty percent (8096) of current monthly consumption up
to a maximum monthly amount for 10,000 gallons until the winter month history is established.
Commercial/Institutional Users
First 2,000 gallons $15 per month
Over 2,000 gallons $4.87 per thousand gallons
Note; 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 (538.38), 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 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 $0.06 per gallon
Note' A pilot study was conducted in order to determine the feasibility of a hauled septic waste receiving station from
October 1, 2007 to January 1, 2008. The fee was approved February 5, 2008 to be reviewed in the budget process.
Ordinance
Ordinance
FY1112
Exhibit C
City of Huntsville
Schedule of Fees and Charges
Fiscal Year 2011 -2012
Solid Waste Services
Single Family Residential Collection
Additional Collection Cart
Business Minimum Inside City Limits Collection
Additional Collection Cart
Multi - Family Residential Collection
Individually Metered Units With Dumpster
Individually Metered Units Without Dumpster
Jointly Metered Units Without Dumpster
Jointly Metered Units With Dumpster
Commercial Collection
2 Yard Dumpster
1 Collection per week
2 Collections per week
3 Collections per week
4 Collections per week
5 Collections per week
Unscheduled /Extra Pickups - ONSITE
Unscheduled /Extra Pickups - Start from Transfer
Station
4 Yard Dumpster
1 Collection per week
2 Collections per week
3 Collections per week
4 Collections per week
5 Collections per week
Unscheduled/Extra Pickups - ONSITE
Unscheduled/Extra Pickups - Start from Transfer
Station
6 Yard Dumpster
1 Collection per week
2 Collections per week
3 Collections per week
4 Collections per week
5 Collections per week
Unscheduled /Extra Pickups ONSITE
Unscheduled /Extra Pickups
Station
Start from Transfer
8 Yard Dumpster
1 Collection per week
2 Collections per week
3 Collections per week
4 Collections per week
5 Collections per week
Unscheduled/Extra Pickups - ONSITE
Unscheduled /Extra Pickups - Start from Transfer
Station
Excessive Wear and Tear of Dumpsters
Dumpster Cleaning
Dumpster Cleaning and Painting
Dumpster Cleaning and Painting when Burned
Dumpster emptied due to placement of large item
Open Top Roll -off
1 Collection per week
2 Collections per week
3 Collections per week
4 Collections per week
5 Collections per week
Extra Pickups'
Call In'
Stand -by'
Compacting Roll -off
Scheduled
Unscheduled'
Extra Pickups'
$20 per month
$12.10 per month
$22.38 per month
$12.10 per month
$16.62 per month per unit
$20 per month per unit
$20 per month per unit
By size of container and number of pickups (see below)
By size of container and number of pickups (see below)
$68.75 per month
$115.53 per month
$162.31 per month
$209.09 per month
$55.88 per month
$31.89 each
$42.53 each
$87.43 per month
$152.91 per month
$218.38 per month
$283.85 per month
$349.32 per month
$44.64 each
$59.52 (added fuel costs, distance, labor, & disposal fees)
$106.12 per month
$190.28 per month
$274.44 per month
$358.60 per month
$442.76 per month
$57.38 each
$76.51 (added fuel costs, distance, labor, & disposal fees)
$124.81 per month
$227.66 per month
$330.50 per month
$433.35 per month
$536.20 per month
$70.12 each
$93.50 (added fuel costs, distance, labor, & disposal fees)
$85
$125
$272
no flat fee, charges as unscheduled pickup from transfer station
according to dumpster size
$381.35 fixed cost + $60.65 per ton disposal
$644.19 fixed cost + $60.65 per ton disposal
$907.03 fixed cost + $60.65 per ton disposal
$1,169.87 fixed cost + $60.65 per ton disposal
$1,432.71 fixed cost + $60.65 per ton disposal
$100.41 fixed cost + $60.65 per ton disposal
$215.63 fixed cost + $60.65 per ton disposal
$215.63 fixed cost + $60.65 per ton disposal
$160.42 fixed cost + $60 65 per ton disposal
$200.53 fixed cost + $60.65 per ton disposal
$112.50 fixed cost + $60.65 per ton disposal
Ordinance
Ordinance
Ordinance
Ordinance
FY 1112
Exhibit C FY 11 12
City of Huntsville
Schedule of Fees and Charges
Fiscal Year 2011 -2012
Repositioning $133.54 per collection
New Roll -off Container Set -up $150 each
Note: 1. Extra pick -up: Charge for servicing a roll -off one extra time. This charge applies to customers on a regular schedule and to customers who are on a call in schedule. For customers
on a call -in schedule, the extra pickup charge will only be applied to the second and subsequent collections during a month. 2. Call -in: This charge is for customers who do not have regularly
scheduled service, but do request service during the month. This charge only applies to the first collection during a month. Following collection charges will be based on the extra pickup rate.
3. Stand -by: This charge is for customers who do not have regularly scheduled service, and do not request service during a month. 4. Unscheduled: This charge is for customers who do not
have regularly scheduled service, and do not request service during a month.
Note: Solid Waste 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
1.25 shall be applied to the cost components listed above.
FEES for Outside City Limits - Dumpsters & Roll -offs
Commercial Collection By size of container and number of pickups (see below)
2 Yard Dumpster
1 Collection per week $85.93 per month
2 Collections per week $144.42 per month
3 Collections per week $202.90 per month
4 Collections per week $261.38 per month
5 Collections per week $319.86 per month
Unscheduled/Extra Pickups - ONSITE $39.85 each
Unscheduled/Extra Pickups - Start from Transfer Static $53.15 each
4 Yard Dumpster
1 Collection per week $109.30 per month
2 Collections per week $191.14 per month
3 Collections per week $272.98 per month
4 Collections per week $354.82 per month
5 Collections per week $436.66 per month
Unscheduled /Extra Pickups - ONSITE $50.69 each
Unscheduled/Extra Pickups - Start from Transfer Static $67.61 each
Exhibit C
City of Huntsville
Schedule of Fees and Charges
Fiscal Year 2011 -2012
6 Yard Dumpster
1 Collection per week $132.65 per month
2 Collections per week $237.85 per month
3 Collections per week $343.05 per month
4 Collections per week $448.25 per month
5 Collections per week $553.44 per month
Unscheduled/Extra Pickups - ONSITE $61.52 each
Unscheduled /Extra Pickups - Start from Transfer Static $80.06 each
8 Yard Dumpster
1 Collection per week $156.01 per month
2 Collections per week $284.57 per month
3 Collections per week $413.13 per month
4 Collections per week $541.68 per month
5 Collections per week $670.24 per month
Unscheduled/Extra Pickups - ONSITE $72.35 each
Unscheduled/Extra Pickups - Start from Transfer Static $96.51 each
Open Top Roll -off
1 Collection per week
2 Collections per week
3 Collections per week
4 Collections per week
5 Collections per week
Extra Pickups'
Call In2
Stand -bye
Disposal Fees
Basic Fee
Minimum Fee
White Goods /Large Furniture
Tires, Small (i.e. car or pickup truck)
Tires, Large (i.e. semi - truck)
Large dead animal (i.e. cow, horse)
Small dead animal (i.e. dog, cat)
Trees, stumps, limbs
$524.36 fixed cost + $75.81 per ton disposal
$885.76 fixed cost + $75.81 per ton disposal
$1247.17 fixed cost + $75.81 per ton disposal
$1608.57 fixed cost + $75.81 per ton disposal
$1790.89 fixed cost + $75.81 per ton disposal
$138.06 fixed cost + $75.81 per ton disposal
$296.48 fixed cost + $75.81 per ton disposal
$296.48 fixed cost + $75.81 per ton disposal
$60.65 per ton
$5.00
$60.65 per ton ($5.00 minimum)
$2.50 per tire
$14.00 per tire
$60.65 per ton (plus $10.00 handling charge)
$5.00 per animal
$60.65 per ton
As Other Utility - Related Fees
Meter Accuracy Test
Replacement of Water Meter, Lock, or Head
Water Tapping Charge
Ordinance
Ordinance
Ordinance
$75 per meter or actual cost if cost of making test exceeds $75 Ordinance
$50 per occurrence Ordinance
Ordinance
Completed by City Crews
.75 inch water tap $1,000
1 inch water tap $1,100
All water taps larger than 1" and/or special water connections completed by City crews shall be made at actual cost.
Completed by Another Entity
.75 inch water tap
1 inch water tap
2 inch water tap
Sewer Tapping Charge
$50
$100
$400
Minimum Fee for Location of Stub or any Connection $200
4 inch sewer tap $1,000
4 inch sewer tap - extended (road bore) Actual cost
All other sewer taps and /or special sewer connections completed by City crews shall be made at actual cost.
Service Fee (new and transferred service)
Service Fee (Restricted Access Fee)
Service Fee (sprinkler on or off)
Same Day Service (work orders to 4pm)
After Hours - after 5pm
Residential Security Deposit
Water
Wastewater
$20
$20
$20
$25
$50
$40
$40
Ordinance
Ordinance
Ordinance
Ordinance
Ordinance
FY1112
Exhibit C
City of Huntsville
Schedule of Fees and Charges
Fiscal Year 2011 -2012
Solid Waste $40
Solid Waste Additional Collection Cart $50
Solid Waste Cart Replacement Fee $50
Commercial Security Deposit 2 x the average estimated monthly utility service charge Ordinance
Construction /Contractor Roll-offs (new accounts) $1,500
Fire Hydrant Meter Deposit $500 Past Practice
Penalty for Late Payment 10% of amount of utility service charge Ordinance
Reinstatement Fee $25 Ordinance
Retumed Check Fee $25 Ordinance
Surcharges for Industrial Wastewater Discharges $1.61 per thousand gallons of wastewater Ordinance
Septic Disposal Fee 6it per gallon Ordinance
Meter Box Lid Replacement $10 Past Practice
Meter Box Replacement Past Practice
Small $25
Large $35
Use of City Equipment $25 per hour Past Practice
Use of City Labor $25 per hour Past Practice
Meter Re -read Due to Meter Restriction $15 Past Practice
Service Call Fee $15 Past Practice
FY 11 12
(Exhibit D)
City of Huntsville Post Employment
Benefit
Plan
INVESTMENT POLICY
STATEMENT
(Exhibit D)
Table of Contents
Section 1 — INTRODUCTION
Section 2 — PURPOSE
Section 3 — INVESTMENT POLICY AND SELECTION
SECTION 4 — INVESTMENT GUIDELINES FOR ASSET MANAGEMENT
Section 5 — INVESTMENT OPTIONS
Section 7 — PERFORMANCE EVALUATION
Section 8 — DEFINITIONS
2
(Exhibit D)
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.
3
(Exhibit D)
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.
4
(Exhibit D)
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.
5
(Exhibit D)
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
6
(Exhibit D)
The Finance Committee recognizes that the trust's long -term
investment performance will be greatly affected by the mix of the asset
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:
Fixed Income Assets:
Large cap
Mid cap
Small cap
International
Cash/Money Market Assets
Total
RANGE
MINIMUM MAXIMUM TARGET
20% 30% 25%
33%
3%
3%
43% 38%
13% 8%
13% 8%
16% 26% 21%
0%
5%
0%
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
7
(Exhibit D)
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.
8
(Exhibit D)
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.
9
(Exhibit D)
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
the options, the growth of the program, and any strategic planning
concerning demographics will also be conducted periodically.The
Finance Committee will receive a report on investment performance
quarterly. Investment performance and results will be presented
annually to the Council.
10
(Exhibit D)
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.
11
(Exhibit D)
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:
12
(Exhibit D)
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 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
The Barclays Capital High
The High Yield Bond Option
Large
Capitalization
Value Style
High Yield Bond Fund is to
Yield Bond Index is the
will be compared to a
Large
Capitalization
Growth Style
seek high current income,
assuming greater risks
including: Credit Risk, Default
benchmark.
universe of High Yield Bond
mutual funds.
Risk, Interest Rate Risk,
Liquidity Risk, Economic Risk,
and Company Risk.
C. Equity Options - Domestic
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.
13
(Exhibit D)
Asset Class
Objective
Benchmark
Universe
Mid Capitalization
Value Style
The investment objective of the
Mid Capitalization Value
Option is to provide Tong -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.
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.
14
(Exhibit D)
D. Equity Options — Non U.S.
Asset Class
Objective
Benchmark
Universe
International
The investment objective of the
The Morgan Stanley /Capital
The investment option
Stock
International Stock Option is to
provide long -term growth of
International (MSCI) Europe,
Australia and Far East
selected will be compared to a
universe of International
capital primarily using
securities of companies located
outside of the United States.
(EAFE) Stock Index is the
benchmark. The investment
option will be compared to the
return and the risk of the
benchmark.
Stock mutual funds.
Emerging Markets
The investment objective of the
The Morgan Stanley /Capital
The investment option
Stock
Emerging Markets Stock
International (MSCI)
selected will be compared to a
Option is to provide long -term
Emerging Markets Stock
universe of Emerging Market
growth of capital primarily
using securities of companies
located in emerging countries.
Index is the benchmark. The
investment option will be
compared to the return and the
risk of the benchmark.
Stock mutual funds.
15
(Exhibit D)
CITY OF HUNTSVILLE, TEXAS
INVESTMENT & BANKING
POLICIES
9/8/2011
[Exhibit D]
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 1
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 -5
XIII. Collateralization 5
XIV. Safekeeping and Custody 5
XV. Internal Control /Compliance Audit 5
XVI. Authorized Financial Dealers and Institutions 5
XVII. Authorized Investments 6 -9
XVIII. Investment Pools 9 -11
XIX. Reporting 11
XX. Policy Adoption 11
PART II - BANKING SERVICES POLICY
I. Establishment of Banking Depository 11 -12
II. Collateralization Requirements/Safekeeping and Custody 13 -14
Glossary 15 -19
Appendix I - State Law List of Authorized Investments
1
[Exhibit D]
CITY OF HUNTSVILLE
INVESTMENT AND BANKING POLICIES
PART I - INVESTMENT POLICY
I. PURPOSE OF POLICY
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. It is the intent of the City
to be in compliance 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. These policies do not, however, govern funds that are managed
under separate investment programs such as retirement funds, pension funds, deferred
compensation funds and certain private donations, that are maintained as required by federal and
state law, other local policies, or donor stipulations.
III. DESIGNATION OF INVESTMENT OFFICERS
The authority to manage the City of Huntsville investment program is derived from State
Statute, the City Charter, and these investment policies. Management responsibility for the
investment program is hereby delegated to the City Manager and Finance Director, designated as
Investment Officers for the City of Huntsville, who shall establish written procedures for the
operation of the investment program consistent with this investment policy and shall be
responsible for the operation of the investment program consistent with this investment policy.
The Director of Finance, under general supervision of the City Manager, shall direct the cash
management program of the City. (See City Charter Art. XI). The City Manager and/or
Director of Finance may deposit, withdraw, invest, transfer, and manage City funds. The
Investment Officers shall report to the Finance Committee of City Council. The Finance
Committee, appointed by the Mayor, shall be responsible for monitoring, reviewing and making
recommendations regarding the City's investment program to the City Council.
The Director of Finance may authorize persons to engage in investment transactions and approve
wire transfers used in the process of investing.
IV. INVESTMENT TRAINING
The Finance Director and City Manager shall attend investment training on an annual basis that
includes education in investment controls, security risks, strategy risks, market risks and general
compliance with state law. Not less than once in a two -year period, the investment officers shall
receive not less than 10 hours of instruction relating to investment responsibilities.
2
[Exhibit D]
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 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
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.
3
[Exhibit D]
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.
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.
4
[Exhibit D]
X. DIVERSIFICATION
The City of Huntsville will diversify its investments by security type and institution. With the
exception of U.S. Treasury securities and authorized pools, no more than 50% of the total
investment portfolio will be invested in a single security type or with a single financial
institution. Diversification will also include terms of maturity as well as instrument type and
issue. Investments shall not exceed more than 20% of the capitalization of the financial
institution other than the main depository. Bond proceeds may be invested in a single security or
investment which exceeds the City=s diversification limits if the Investment Officers, with
concurrence of the Finance Committee, determine that such an investment is necessary to
comply with Federal arbitrage restriction or to facilitate arbitrage record keeping and calculation.
XI. MAXIMUM MATURITIES
In order to stabilize yield for budgeting purposes, the City shall maintain a portion of its
investments in obligations with maturities greater than one year. No investment shall be made
with a maturity greater than five years without express authority of the Finance Committee of
the City Council. In determining the amount of investment longer than one year, cash flow and
unallocated reserve funds will be evaluated. The maximum dollar- weighted average maturity
allowed based on the stated maturity date for the portfolio shall not exceed 2 years.
XII. PURCHASE PROCEDURES
A. 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 competitive bids are solicited.
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.
XIII. COLLATERALIZATION
Collateralization will be required on two types of investments: certificates of deposit and
repurchase (and reverse) agreements. In order 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. Collateral substitution is allowed.
5
[Exhibit D]
XIV. SAFEKEEPING AND CUSTODY
All security transactions, including collateral for repurchase agreements entered into by the City
of Huntsville shall be conducted on a delivery vs. payment (DVP) basis. Securities shall be held
by a third party custodian. Safekeeping receipts shall be required.
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 provide a written instrument certifying that they have received
and reviewed the City ' s Investment Policy and acknowledge 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. 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:
6
[Exhibit D]
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
recognized investment rating firm not less than A or its equivalent.
e. The following are not authorized investments under this section:
1) obligations whose payment represents the coupon payments on
the outstanding principal balance of the underlying mortgage -
backed security collateral and pays no principal;
2) obligations whose payment represents the principal stream of
cash flow from the underlying mortgage- backed security
collateral and bears no interest;
3) collateralized mortgage obligations that have a stated final
maturity date greater than 10 years; and
4) collateralized mortgage obligations the interest rate of which is
determined by an index that adjusts opposite to the changes in a
market index.
2. Certificates of Deposit:
Certificates of deposit issued by state and national banks or a savings bank
domiciled in Texas that are:
a. guaranteed or insured by the Federal Deposit Insurance Corporation, or
comparable insurance entities or their successors; or
b. secured in any other manner and amount provided by law for deposits of
the City.
B. Authorized investments requiring prior approval of the Finance Committee:
1. Collateralized Mortgage Obligations (CMO =s) directly issued by a federal
agency or instrumentality of the United States, the underlying security for which
is guaranteed by an agency or instrumentality of the United States. The stated
maturity date cannot be greater than 10 years and the interest rate cannot be
determined by an index that adjusts opposite to the changes in a market index.
2. Repurchase Agreements
"Repurchase agreement" means a simultaneous agreement to buy, hold for a
specified time, and sell back at a future date obligations described by Texas
Government Code section 2256.009(a)(1), 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 security
repurchase agreement. The primary dealer and the City of Huntsville must sign
[Exhibit D]
a Master Repurchase Agreement which details acceptable types of collateral; the
standard for collateral custody and control; the collateral valuation and initial
margin, accrued interest, a requirement of marking to market, and margin call;
the method of transmitting security income; and, the condition for agreement
termination and acceptable methods for delivery of securities and collateral.
A fully collateralized repurchase agreement is an authorized investment if the
repurchase agreement has a defined termination date, is secured by obligations
described by Texas Government Code section 2256.009(a)(1), and, requires the
securities being purchased by the City to be pledged to the City, held in the
City=s name, and deposited at the time the investment is made with the City or
with a third party selected and approved by the City, and is placed through a
primary government securities dealer, as defined by the Federal Reserve, or a
financial institution doing business in Texas.
Notwithstanding any other law, the term of any reverse security repurchase
agreement may not exceed 90 days after the date the reverse security repurchase
agreement is delivered.
Money received by the City under the terms of a reverse security repurchase
agreement shall be used to acquire additional authorized investments, but the
term of the authorized investments acquired must mature not later than the
expiration date stated in the reverse security repurchase agreement.
3. Banker's Acceptances
A bankers acceptance is an authorized investment if the bankers= 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.
4. 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
Tess than A -1 or P -1 or an equivalent rating by at least two nationally recognized
credit rating agencies or one nationally recognized credit rating agency and is
fully secured by an irrevocable letter of credit issued by a bank organized and
existing under the laws of the United States or any state.
5. 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
8
[Exhibit D]
Act of 1940 (15 U.S.C. Section 80a -1 et seq.); (3) has a dollar - weighted
average stated maturity of 90 days or fewer; and (4) includes in its
investment objectives the maintenance of a stable net asset value of $1
for each share.
b. In addition to a no -load money market mutual fund pe rmitted 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;
3) is invested exclusively in obligations approved by this
subchapter;
4) is continuously rated as to investment quality by at least one
nationally recognized investment rating firm of not less than
AAA or its equivalent; and
5) conforms to the requirements set forth in Texas Government
Code sections 2256.016(b) and (c) relating to the eligibility of
investment pools to receive and invest funds of investing entities.
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.
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:
9
[Exhibit D]
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 safekeep 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;
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:
10
[Exhibit D]
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
Not less than quarterly, the Finance Director shall prepare and submit to the City Council a
written report of investment transactions for the preceding reporting period. The report shall
describe in detail the inv estment position of the City on the date of the report, and state
compliance of the investment portfolio, as it relates to the investment strategy and investment
policies. The report shall contain a summary statement prepared in compliance with generally
accepted accounting principles of each pools fund group that states the beginning market value
for the reporting period, additions and changes to the market value during the period, the ending
market value for the period, a comparison to the benchmark bond equivalent yield or United
States Treasury obligation of comparable maturity and fully accrued interest for the reporting
period. The report shall state the book value, market value, and maturity date of each separately
invested asset as of the beginning and end of the reporting period by the type of security and
fund type invested. The fund for which each individual investment was acquired shall be
reported. The report shall be presented to the Council and shall be jointly signed by the Finance
Director and City Manager within 21 days after the end of the period. On a monthly basis, the
Finance Director shall provide to the City Council, in summary form, a report showing by fund,
total cash, monies in investment pools and securities by type and maturity date, and a summary
of interest earnings.
11
[Exhibit D]
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
The City Council shall approve a financial institution /institutions to act as a depository bank for a two
year period.
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.
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.
12
[Exhibit D]
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 collateral shall equal at least 102% of the cash value of a
repurchase agreement. Otherwise, market value of the investment securities used as
collateral should be at least 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.
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
13
[Exhibit D]
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.
14
[Exhibit D]
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
15
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.
DELIVERY VERSUS PAYMENT: There are
two methods of delivery of securities: delivery
versus payment and delivery versus receipt.
[Exhibit D]
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.
16
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.
[Exhibit D]
FINANCIAL INSTITUTIONS: As used in
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 "passthroughs" 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
17
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.
[Exhibit D]
PORTFOLIO: Collection of securities held by
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 Tess 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
18
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.
(Exhibit D]
SECURITIES & EXCHANGE
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
19
adjustment spread over the period from the date
of purchase to the date of maturity of the bond.
[Exhibit D]
This page intentionally left blank
PUBLISHER'S AFFIDAVIT OF PUBLICATION
THE STATE OF TEXAS, County of Walker
I, Amy Lee, of the aforesaid County and State, do solemnly swear that I am
publisher of The Huntsville Item, a daily newspaper of general circulation
which has been continuously and regularly published at Huntsville, Walker
County, Texas, and is a legal newspaper and the attached notice was published
in said newspaper.
City of Huntsville 2 consecutive/subsquent dates previous
to the return day therof to wit:
On 15 -Sep 2011 On
18 -Sep 2011
On
2011 On 2011
On
2011 On 2011
Subscribed and sworn to this 19th
(Seal)
Publisher
day of Sept 2011
Notary Public, Walker County, Texas
NINA HANSEN
My Commission Expires
January 27, 2013
Print
Subject: Budget & tax rate
From: Lee Woodward (LWoodward@huntsvilletx.gov)
To:
Cc:
nina2hansen@yahoo.com;
KEdwards@huntsvilletx.gov; WDuke@huntsvilletx.gov; LOBrien@huntsvilletx.gov;
Date: Tuesday, September 13, 2011 7:48 AM
Page 1 of 2
Good morning! Please let me know when the below can be run, twice in the next ten days. Please also
email me pricing. Thank you! Lee
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, 2011, THROUGH SEPTEMBER
30, 2012; 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.
Approved by the City Council on September 12, 2011 - Lee Woodward, City Secretarx
AN ORDINANCE ADOPTING THE TAX RATE (OF $0.3915) AND LEVYING TAXES FOR
THE CITY OF HUNTSVILLE FOR THE 2011-2012 FISCAL YEAR UPON ALL TAXABLE
PROPERTY LOCATED WITHIN AND SUBJECT TO TAXATION IN THE CITY; AND
PROVIDING FOR THE EFFECTIVE DATE HEREOF. Approved by the City Council on September
12, 2011 — Lee Woodward, City Secretary
The material in this e-mail is intended only for the use of the individual to whom it is addressed and may contain information
that is confidential, privileged, and exempt from disclosure under applicable law. If you are not the intended recipient, be
advised that the unauthorized review, use, disclosure, duplication, distribution, or the taking of any action in reliance on this
information is strictly prohibited. If you have received this e-mail in error, please notify the sender by return email and destroy
all electronic and paper copies of the original message and any attachments immediately. Please note that neither City of
Huntsville nor the sender accepts any responsibility for viruses and it is your responsibility to scan attachments (if any). Thank
you.
http://us.mg201.mail.yahoo.com/neo/launch?.partner=sbc&.rand=btgrv3256k0ry 9/13/2011
THURSDAY, SEPTEMBER 15, 2011
TCARE LOST AND FOUND LEGALS LEGALS
Found Small Black/tan
You Terrier, Somebodies
ng For baby 936-581-5327
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Notice: •
Tony Doughtie, as owner of AMT Storage,
located at 4010 Sam Houston Ave, Huntsville,
Texas 77340 will sell the contents (personal
miscellaneous property) of the following storage
unit to satisfy its landlord's lien, Unit #50 -Sherry
Peterson.
The sale will be held at 10:00 am on Saturday,
September 24, 2011 at 4010 Sam Houston
Avenue, Huntsville, Texas. The entire contents
of each storage unit will be sold to the highest
bidder for cash.
9-15, 9-23
LEGALS LEGALS
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, 2011, THROUGH SEPTEMBER
30, 2012; 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.
Approved by the City Council on September 12,
2011 — Lee Woodward, City Secretary
AN ORDINANCE ADOPTING THE TAX RATE
(OF $0.3915) AND LEVYING TAXES FOR THE
CITY OF HUNTSVILLE FOR THE 2011-2012
FISCAL YEAR UPON ALL TAXABLE
PROPERTY LOCATED WITHIN AND
SUBJECT TO TAXATION IN THE CITY; AND
PROVIDING FOR THE EFFECTIVE DATE
HEREOF. Approved by the City Council on
September 12, 2011 — Lee Woodward, City
Secretary
9-15, 9-18
PUBLISHER'S AFFIDAVIT OF PUBLICATION
THE STATE OF TEXAS, County of Walker
I, Amy Lee, of the aforesaid County and State, do solemnly swear that I am
publisher of The Huntsville Item, a daily newspaper of general circulation
which has been continuously and regularly published at Huntsville, Walker
County, Texas, and is a legal newspaper and the attached notice was published
in said newspaper.
City of Huntsville
1 consecutive/subsquent dates previous
to the return day therof to wit:
On 31 -Aug 2011 On
On
2011 On
2011 On
Subscribed and sworn to this 31st
(Seal)
day of
August
2011
2011
2011
Publisher
2011
NINA HANSEN
My Commission Expires
January 27, 2013
Print
Page 1 of 1
Subject: FW: NOTICE OF PUBLIC HEARING ON THE CITY OF HUNTSVILLE PROPOSED FISCAL YEAR 2011.docx
From:
Lee Woodward (LWoodward@huntsvilletx.gov)
To:
Cc:
Date:
nina2hansen@yahoo.com;
KEdwards@huntsvilletx.gov; WDuke@huntsvilletx.gov; MJoyner@huntsvilletx.gov; WBaine@huntsvilletx.gov;
Tuesday, August 30, 2011 8:08 AM
Good morning, Ms. -Nina —
Attached is the legal notice e discussed on the phone. I will give you a call by 1:30 today to confirm.
Thanks,
Kristin
From: Winston Duke
Sent: Monday, August 29, 2011 7:25 PM
To: Kristin Edwards; Lee Woodward
Subject: NOTICE OF PUBLIC HEARING ON THE CITY OF HUNTSVILLE PROPOSED FISCAL YEAR 2011.docx
Slight change, corrected copy.
wd
The material in this e-mail is intended only for the use of the individual to whom it is addressed and may contain information
that is confidential, privileged, and exempt from disclosure under applicable law. If you are not the intended recipient, be
advised that the unauthorized review, use, disclosure, duplication, distribution, or the taking of any action in reliance on this
information is strictly prohibited. If you have received this e-mail in error, please notify the sender by return email and destroy
all electronic and paper copies of the original message and any attachments immediately. Please note that neither City of
Huntsville nor the sender accepts any responsibility for viruses and it is your responsibility to scan attachments (if any). Thank
you.
http://us.mg201.mail.yahoo. com/neo/launch?.partner=sbc&.rand=4mr3kr3rrdgvq 8/3 0/2011
NOTICE OF PUBLIC HEARING ON THE CITY OF HUNTSVILLE PROPOSED FISCAL YEAR 2011-2012 BUDGET
A public hearing on the proposed budget for the City of Huntsville fiscal year beginning October 1, 2011
through September 30, 2012 will be held on September 12, at 6 P.M. in the Council Chambers at City
Hall, 1212 Ave M, Huntsville, Texas 77340. The budget is not proposed to raise property taxes over that
of that adopted for the 2010-11 fiscal year ending September 30, 2011; the levy from new property is
estimated at $129,000.
The proposed budget may be examined weekdays from 8:00 AM to 5:00 PM at the Huntsville Public
Library, and at City Hall at the Offices of the City Secretary or City Manager, and on the city's web site:
www.huntsvilletx.gov.
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RENTALS
$525/mo Duplex
2/1/1 cp,
w/d hook ups
913 Prentice Ln #A
$495/Mo 1/1, D-5
Sycamore Village III
$425/Mo 1/1
208 University Ave #5
$600/Mo 2/1
water pd.
2018 L 1/2 unit #10
$950/Mo Unique
3/1.5
912 University Ave
Heart of Texas
936-291-7777
$99 Student Move -in
Right at Campus
1,2 & 3 bedrooms and
Townhomes. No pet
deposit, No
application fee.
All bills paid most
units
$500 TDCJ Special
936-291-2100
www.richmondl and2.
com *OAC
1 BDRM apt for rent
clean, very nice, safe
environment, close to
town, w/d $500/mth +
deposit, includes all
utilities, cable & inter-
net 936-662-9784 -
2/1 Country Cottage
Small and charming
covered deck, horse
stalls available
$650/mo includes '
water
936.435-1541
1/1 Real Log Cabin
Very quiet area, close
to town $475/mo
936-435-1541
Large 2/2 House
Open floor plan, wood
floors, carport, fenced
yard $850/mo
includes water
936-435-1541
2/1 DUPLEX, in town
up stairs, W/D &
dishwasher.CA/CH
$550/mo $450/dep.
water paid.
295-4827 or 581-1883
2/1, NEAR Riverside
$450/dep $450/mo
All Appliances
936-662-7530
3 BDRM MH $400/mo
OR 2bdrm MH $350
$250/Dep Trinity
No Pets 936-377-2375
3/2 Covered porch
FP, All appli., fenced
back yard $650/mo +
dep 936-662-6258
3/2 Duplex $625
RENTALS
Beautiful 2/2
8 miles from SHSU.
on 17 acres Room for
horses. $700/mo
936-661-2210 or
936-577-2304
BOLD
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For low cost
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Call: 936-295-5407
Monday - Friday
8:OOam- 5:OOpm
Country Efficiencies
w/ porch, No pets
AFFORDABLE
295-4401 662-6340
COUNTRY LIVING
close to town
Share house & horse
pasture. Fenced yard
overlooks lake.
Private quiet setting
Will be avail after Sept
1st $400/mo. Call
for appt 936-295-0912
or 936-355-3524
CUTE TO THE MAX!
Two yr old 3/1.5
On large lot, fenced
yard, Extra storage
Energy efficient
CA/CH, w/d hook up,
5 ceiling fans $945/mo
Background check req
936-661-9706
HIDDEN VALLEY
Mobile Horne Park.
Now Leasing small
and LARGE 2 bdrs
Rent starts at
$375/mo. plus utilities
Call Cathy at
Hidden Valley
936-436-1010
CLASSIFIED
RENTALS
3/3/2 Fireplace,
Atrium, Fenced back
yard $850
2/1 carport $500
fenced backyard.
carport w/ storage,
w/d connections
2/1 fenced back
yard, fireplace
$450
Restricted, Security
Kevin -Agent
936-891-5200
HOMES FOR RENT
*HOUSES*
FOR RENT
$300-$1800/mo.
Call 295-5767
2/1 HOUSE $595
No pets. In town on
Hwy 190 east
936-295-2500
2/1 IN TOWN
No inside pets
Wood floors $650/mo
936-438-8893
2/1 on Private
property outside city
limits $450/mo
936-581-3051
APARTMENTS FOR REM'
Special 1st Month
Free. Most bills paid
2bdrm, pool $650/mo
936-661-5551
CommetrialBusinessSpace
228 HWY 75 North
+/- 4400 sq ft building
0.5 mile from
Walgreens Lots of
parking 294-7479
OFFICE / RETAIL
920sq ft Great loca-
tion
on Sam Houston
936-661-3666 Agent
MANUFACTUREDHOMES
rnP Darr
1/1 QUIET COUNTRY
SETTING
$325/dep, $325/mo
713-503-2289
2/1 Mobile Home
for rent In Country
936-291-3368 or
903-238-4711
2/1 Private in Country
w/d, stove, frige,
window units
936-295-0780
713-299-1199
2/2 MOBILE HOME
2/1,1-2 PERSON W/D $425/monthly ,Midway
Hookup, Fans, 1 yr. Area, Quiet Park 936 -
lease, No Pets/Child 344-6503:
$550/mth 295-3690
3/2 BRICK HOME
Avail October 1st
$1275/mo
Shown by appt only
936-295-9420 for
more information
3/2 MADISONVILLE
Shown by
appointment only
936-348-6141
3/2/2 BRICK
Clay Circle $850/mo
Laminate & ceramic
tile 936-581.0349
HUGE 2,3,4
Bdrm Duplexes
Starting at $695
Pets Ok, FP, W/D
conn, stove, frig.
866-617-6225
CloseToSam.com
REMODELED: 3/2
covered front/ back
porch, cent a/h,
dishwasher/storag5
shed $750.00 ref.
(936) 661-3805
APARTMENTS FOR RENT
3 BDRM Mobile
Home
Refurbished, carport,
sidewalks, very clean
$525 w/ water
936-293-6255
3/1.5 MH
$600/Mo.
$300/dep
New ca/ch & .
appliances
large front porch
Plenty of shade trees
Avail Now
Rex Realty
295-2090
3/2 $625/mo $400/dep
garbage included
No pets, --credit check
936-295-8904
3/2 MH on 1 ac. Hwy
75 N 5 mi from town
$650/mo + dep
936-577-6419
3/2 MOBILE HOME
with Lg Porches, and
yards, pasture for
horses. College
students welcome!
$650 936-295-31.85
NO APPLICATION
FEE.
2 and 3 bdrms
LEGALS
If you are the owner
of a black street bike
VIN
lawpfnOh52c030991
Contact936-291-0954
THE HUNTSVILLE ITEM 5B
LEGALS LEGALS
NOTICE OF PUBLIC HEARING ON THE CITY
OF HUNTSVILLE PROPOSED FISCAL YEAR
2011-2012 BUDGET
A public hearing on the proposed budget for the
City of Huntsville fiscal year beginning October
1, 2011 through September 30, 2012 will be
held on September 12, at 6 P.M. in the Council
Chambers at City Hall, 1212 Ave M, Huntsville,
Texas 77340. The proposed budget is not
proposed to raise property taxes over that of
that adopted for the 2010-11 fiscal year ending
September 30, 2011.
The proposed budget may be examined
weekdays from 8:00 AM to 5:00 PM at the
Huntsville Public Library, and at City Hall at the
Offices of the City Secretary or City Manager,
and on the city's web site:
www.huntsvilletx.gov.
8-31
LEGALS LEGALS
PUBLIC HEARING
On Monday, September 12, 2011 at 9:00 a.m.
in the morning,Commissioner's Court of Walker
County, Texas will hold a public hearing to
consider the replat of Lot 46, Section 1, Ranch
Acres Subdivision. The hearing will be held in
the Commissioner's courtroom at the Walker
County Courthouse, located at 1100 University
Avenue.
You are hereby notified in accordance with
Chapter 212 of the Texas Local Government
Code that the County plans to take action on
this replat. The written documents may be
examined and written comments will be
accepted during normal business hours in the
office of the Planning and Development
Department located at 1313 University
Avenue.
8-28, 8-31
to
TI I E I`T`EM
for great ewe today!
Retail
Retail
Vine Ripe Vegetables
Flash Frozen peas, beans, okra, fruit
& more!
O'Reilly Parking Lot on 11th Street
September 1st & 2nd
8:OOam-5:OOpm
and September 3rd 8:OOam - Noon