The Mayor and Sachse City Council request that all cell phones be turned off or set to vibrate. Members of the audience are requested to step outside the Council Chambers to respond or to conduct a phone conversation.

BACKGROUND

TX-78 is a primary arterial roadway that bisects the City of Sachse and features a high concentration of the city's commercially developed property. As the city gets closer to buildout, the amount of undeveloped property becomes more scarce, and more expensive. Additionally, within the TX-78 corridor is Old Town, recognized as the "Heart of Sachse" and identified as a catalytic area in the adopted comprehensive plan. The City recognizes an opportunity to create a Tax Increment Reinvestment Zone (TIRZ) to guide future development in the area which reflects the city's Comprehensive Plan and zoning ordinance. Creating a new TIRZ district will promote future investment and improvements within the boundary that will lead to a more economically resilient community.   

Creation of a Tax Increment Reinvestment Zone (TIRZ) is a tool that local governments can use to pay for improvements that will draw private investment to an area. This does not create a new tax; instead, it redirects a portion of the ad valorem tax from property in the geographic area designated as a Tax Increment Reinvestment Zone (TIRZ) to pay for improvements in that zone.

Each taxing unit (e.g. city or county) that levies taxes against a property may contribute future tax revenues to pay for improvements to an area. Specifically, the taxing unit may choose to dedicate any portion of the tax revenue directly attributable to the increased property value caused by the improvements within the reinvestment zone. The additional tax revenue received from the affected properties is referred to as the tax increment. Each taxing unit determines what percentage of its tax increment, if any, it will commit to repayment of the cost of financing selected projects.

The City of Sachse currently has two active Tax Increment Reinvestment Zone (TIRZ) districts; TIRZ #1 and TIRZ #2. Each of these existing TIRZ districts is located near the President George Bush Turnpike (PGBT). TIRZ #1 was established in 2003 and is due to expire in 2028.  TIRZ #2 was established in 2018 and is due to expire in 2038.

OVERVIEW

Only a City or County may initiate a TIRZ. The governing body of a city must create a Tax Increment Reinvestment Zone (TIRZ). Once a City begins the process of establishing a tax increment financing reinvestment zone, other taxing units may consider participating in the zone.

A TIRZ project jump starts development to encourage growth and, ultimately, generate new tax revenue. The benefits of a TIRZ include:

• building needed public infrastructure in areas lacking adequate development to attract businesses;
• encouraging development, thereby increasing property values and long-term property tax collections; and
• reducing the cost of private development by providing reimbursement for eligible public improvements.

POLICY CONSIDERATIONS

Tax Increment Financing Reinvestment Zones are one of many economic development tools available to cities and counties. These zones allow cities to use increased revenues captured, because of the incremental value-added as a result of the development, to reimburse developers for making such improvements. 

RECOMMENDATION

Receive presentation from Trent Petty, with Petty & Associates, and provide feedback on the possible creation of Tax Increment Reinvestment Zone (TIRZ) #3.

Please note: These items are for discussion purposes only and no City Council action will be taken. The workshop session is for City Council and staff discussion. Citizen input is not permitted on this agenda.

The Mayor and Sachse City Council request that all cell phones be turned off or set to vibrate. Members of the audience are requested to step outside the Council Chambers to respond or to conduct a phone conversation.

Citizens who wish to speak may fill out a form or email to the City Secretary prior to the meeting.

BACKGROUND

Minutes of the August 16, 2021, combined meeting.

POLICY CONSIDERATIONS

There are no policy considerations affiliated with this item.

RECOMMENDATION

Approve the minutes of the August 16, 2021, combined meeting.

BACKGROUND

The Finance Department prepares a report each month to update the City Council regarding revenue and expenditures for the City.  Included in the report are unaudited summaries for the General Fund, Utility Fund, Debt Service Fund, Sachse Economic Development Corporation, and the Sachse Municipal Development District, as well as an analysis of year-to-date sales tax revenue.

POLICY CONSIDERATIONS

The City Charter requires that the City Manager submit a monthly report covering revenues and expenditures.

RECOMMENDATION

Accept the monthly revenue and expenditure report for the period ending July 31, 2021.

BACKGROUND

The Finance Department releases a quarterly report on the City's finances.  The report comprises two sections: budget and investments. The budget section includes revenues and expenditures for the General, Utility, Debt Service, Impact Fee, Special Revenue, Street Maintenance Tax, Health Insurance funds and two component units--Sachse EDC and Municipal Development District, as well as, a summary of capital project expenditures. The investment section provides an overview of investment activity details for the Money Market, Investment Pool, and Certificate of Deposit accounts.

It is the City’s strategy to maintain a high percentage of idle funds invested in safe, secure, and liquid investment securities and pooled investment types. This strategy is in accordance with the Public Funds Investment Act (PFIA) and City policy.

Cash on hand available for investing on June 30, 2021, was $61,784,190 in all funds. The average interest/yield on all investments was 0.43%, and investment earnings totaled $66,357.17.

General Fund revenues are just under 100% of budget and expenditures are at 79%, as of June 30, 2021. Utility Fund revenues are 71% of budget and expenditures are also at 71%.

OVERVIEW

Quarterly Budget and Investment Reports for the quarter ended June 30, 2021.

POLICY CONSIDERATIONS

The PFIA requires that the Investment Officers prepare and submit quarterly a written report of investment transactions for all funds covered by the Investment Policy.

RECOMMENDATION

Accept the Quarterly Budget and Investment Reports for the quarter ended June 30, 2021.

BACKGROUND

The City of Sachse has participated in the Household Hazardous Waste Interlocal Agreement with Dallas County since FY 2002-2003. The Interlocal Agreement allows Sachse residents to drop-off household hazardous waste materials at the Dallas County Home Chemical Collection Center facility, located at 11234 Plano Road in Dallas. Residents can drop-off household hazardous materials at this site, free of charge, by showing proof of Sachse residency.

The Interlocal Agreement permits four additional one-year renewals for a five-year total contract term authorized by Dallas County Court Order 2017-0979 and a continuation authorized by Court Order 2021-0665. The City Council to date has approved three amendments to the agreement. The first amendment in October 2018, the second amendment in October 2019, and the third amendment in September 2020.

OVERVIEW

This fourth amendment will provide for a new term from October 1, 2021, through September 30, 2022, and has no major changes. This service is also offered in addition to the two X-Treme Green events, which include household hazardous waste collection, held each year. 

POLICY CONSIDERATIONS

There are no policy considerations affiliated with this item. 

RECOMMENDATION

Approve an amendment to the Household Hazardous Waste Interlocal Agreement between Dallas County and the City of Sachse.

BACKGROUND

Since 2011, the City partnered with the City of Garland Health Department through an Interlocal Agreement with a two-year renewal option to provide services to the City. The agreement was renewed and extended for an additional two years in 2013, 2015, 2017, and 2019. It should be noted that this agreement does not suggest that the contract and relationship be altered with DCHHS for the food establishments, childcare centers, vector control, and the continuation to regulate on-site sewage facilities. This agreement would complement those services already in place with DCHHS. The City of Sachse continues to use Dallas County Health and Human Services (DCHHS) to provide all environmental health services for food establishments, childcare centers, vector control, as well as regulating on-site sewage facilities in the City of Sachse. This also includes assistance with communicable disease investigations and control for all vaccine preventable disease.

OVERVIEW

The purpose of this Professional Services Agreement is to renew the agreement with the City of Garland and the City of Sachse for Garland Health Department to be our Local Health Authority for the City of Sachse. The Garland Health Department would provide communicable disease investigations and control for all vaccine preventable disease and enteric illnesses identified within the City of Sachse for its citizens. The City of Garland Health Department will make available to the citizens of Sachse all immunizations and well child services offered to the residents of Garland at the same fees as required of Garland residents. This includes providing notifications of all occurrences of foodborne illness outbreaks, reportable communicable diseases as they pertain to food service establishments and childcare centers, and all cases of mosquito-borne illnesses that occur in the City of Sachse, to DCHHS Environmental Health Divisions.

POLICY CONSIDERATIONS

There are no policy considerations affiliated with this item.

RECOMMENDATION

Approve renewing the terms and conditions of a Professional Services Agreement, by and between the City of Sachse and the City of Garland for the City of Garland Health Department to provide immunizations, well child health care and communicable disease investigation services for the City of Sachse.

BACKGROUND

This Interlocal Agreement is renewed on an annual basis and requires City Council approval. As indicated in the Agreement, Dallas County will perform a minimum of two inspections for each food establishment and any additional follow-up inspections. The City will collect and submit to Dallas County a minimum of $150 from each food establishment and $75 for each additional follow-up inspection. Additionally, the Agreement also addresses the environmental health services associated with vector and/or mosquito control through ground applications. This agreement is effective October 1, 2021, through September 30, 2022.

OVERVIEW

This Agreement includes Food Establishment Inspections and Environmental Health Services.  Both are described below:

• Food Establishment Inspections: The City of Sachse simply acts as a collection agent for fees associated food establishment inspections. The food establishment pays the fee directly to the City of Sachse and the City then remits the money to Dallas County on an annual basis.

• Environmental Health Services: Environmental Health Services addresses Vector and/or Mosquito Control. These services only include ground application services upon written request by the City of Sachse to Dallas County. Ground application services are limited to ground spraying of pesticides by County vehicles (“adulticiding”) and application of larvacide to standing water.

POLICY CONSIDERATIONS

There are no policy considerations affiliated with this item.

RECOMMENDATION

Approve an Interlocal Agreement renewing the Food Establishment and Inspection and Environmental Health Services between Dallas County, on behalf of Dallas County Health and Human Services, and the City of Sachse.

BACKGROUND

The Master Fee Schedule is a convenient tool for citizens and customers to familiarize themselves with various charges for City services. The schedule can be updated periodically for necessary changes without amending the associated Ordinance.

OVERVIEW

The Master Fee Schedule is considered annually during the budget approval process.  Water and wastewater rates were presented and considered during the 2019 Water Rate Study discussions, performed by NewGen Strategies and Solutions. The City Council was briefed at the August 16, 2021, meeting regarding all proposed changes.

POLICY CONSIDERATIONS

There are no policy considerations affiliated with this item.

RECOMMENDATION

Approve a resolution amending the Master Fee Schedule by amending fire services, ambulance services, development services, refuse services fees and wastewater fees and providing an effective date.

BACKGROUND

Sachse, along with 171 other Mid-Texas cities served by Atmos Energy Corporation, Mid-Tex Division ("the Company"), is a member of the Atmos Cities Steering Committee ("ACSC").  In March 2018, the City Council approved a new Rate Review Mechanism ("RRM").  The RRM process allows a longer review period and includes other features favorable to the Cities.  On or about April 1, 2021, the Company filed a rate request pursuant to the RRM Tariff adopted by ACSC members. The Company claimed that its cost-of-service in a test year ending December 31, 2020, entitled it to additional system-wide revenues of $43.4 million.  Application of the standards set forth in ACSC's RRM Tariff reduced the Company's request to $40.5 million, $29.3 million of which would be applicable to ACSC members.  ACSC's consultants concluded that the system-wide deficiency under the RRM regime should be $22.34 million instead of the claimed $40.5 million.  The amount of the $22.34 million deficiency applicable to ACSC members would be $16.8 million.

The Executive Committee of ACSC recommends the negotiated settlement of $22.78 million, but with a two-month delay in the Effective Date, being December 1, 2021.  This should save the ACSC cities approximately $3.8 million.

OVERVIEW

The impact of the settlement on average residential rates is an increase of $1.28 per month, or 2.2%; the increase for average commercial usage will be $4.03, or 1.61%

POLICY CONSIDERATIONS

The governing body of a municipality has exclusive original jurisdiction over the rates, operations, and services of a gas utility within the municipality.

RECOMMENDATION

Approve a resolution approving a negotiated settlement between the Atmos Cities Steering Committee ("ACSC") and Atmos Energy Corp., Mid-Tex Division regarding the company's 2021 Rate Review Mechanism filings.

BACKGROUND

The existing debt service obligation for the City of Sachse for FY2021-2022 is $879,000 less than the previous year.  This reduction combined with an increase in taxable property values has resulted in a projected overage of approximately $1.25 million in the Debt Service Fund if the Interest & Sinking (I&S) Fund tax rate remains level.  Because all the projections for the 2021 Bond election have been based on maintaining a level debt service rate, this disparity has provided an opportunity to replace three high dollar apparatus in the Fire Department through the issuance of tax notes.  The projected cost of the three items is $1.72 million; the final amortization schedule will be set at the time of the sale of the tax notes, but it should be paid in full in three years, possibly two.  The City Manager's Proposed Budget includes lowering the Operations & Maintenance (O&M) rate by 1.9 cents, and also includes increasing the contributions to the Vehicle and Equipment Replacement Fund to include the eventual replacement of all fire apparatus.

OVERVIEW

Tax Notes are limited to a seven-year amortization and may be paid off in a shorter time.  Debt Service payment for principal and interest of the Series 2021 Tax Notes will be funded without increasing the Interest and Sinking (I&S) tax rate.

POLICY CONSIDERATIONS

According to Section 7.14 of the City Charter, the City shall have the right and power, except as prohibited by law or this Charter, to borrow money by whatever method it may deem to be in the public interest.

RECOMMENDATION

Approve an ordinance authorizing the issuance and sale of City of Sachse, Texas Limited Tax Notes, Series 2021; and approving all other matters related thereto.

BACKGROUND

Since approval of the Fiscal Year 2020-2021 Budget, several line items have been identified that require an increase to the overall spending authorized in the Budget.

OVERVIEW

General Fund

The proceeds from the sale of the old city hall property were booked to the General Fund after the end of the 2020 fiscal year, but those funds were identified for funding projects within the Capital Projects fund.  The inter-fund transfers which are required to balance the funding sources within the Capital Projects Fund have to be booked as expenditures in the General Fund--$550,000 for the Community Center, $80,000 for repairs at Fire Station 2, and the remaining $132,500 for street projects.

Due to the high volume of building permits issued this year, there has been an increase in inspections performed by a third-party provider.  The estimated shortfall for that line item is $200,000.  Year-to-date revenue for Supplemental Building Permits totals $316,000.

Special Revenue Fund

Electrical improvements to the municipal campus were needed to support the holiday lighting display in 2020--the Special Revenue Fund had residual funds from a settlement with North Texas Cities Electric that were to be used for energy efficiency improvements--$21,423.

The funding source for Commons Park at The Station was Park Development Fees; this $246,400 expenditure was not included in the original FY 2020-2021 budget.

POLICY CONSIDERATIONS

According to Section 7.09 of the City Charter, "Under conditions which may arise and which could not reasonably have been foreseen in the normal process of planning the budget, the city council may, by a majority vote of the full membership, amend or change the budget to provide for any additional expense in which the general welfare of the citizenry is involved.  These amendments shall be by ordinance, and shall become an attachment to the original budget."

RECOMMENDATION

Approve an ordinance of the City Council of Sachse, Texas ("City"), authorizing certain budget amendments pertaining to the fiscal year 2020-2021 Budget; and providing an effective date.

BACKGROUND

The City Manager's 2021-2022 Proposed Budget for citywide programs and services was presented to City Council on August 16, 2021.  Budget information was distributed for City Council review and consideration.  The proposed budget has been posted on the City website, and copies are on file with the City Secretary and at the Sachse Public Library for public inspection.

This item is to allow public input regarding proposed revenues and expenditures for fiscal year 2021-2022.  The proposed budget revenues and expenditures can be amended by the City Council prior to adoption of the budget ordinance.

POLICY CONSIDERATIONS

The budget document sets the financial and operational direction of the City for the next fiscal year.

RECOMMENDATION

Conduct a public hearing on the proposed 2021-2022 fiscal year budget.

BACKGROUND

In accordance with Section 7.15 of the City Charter, the City held a public hearing on the proposed budget of programs and services for the ensuing year on September 7, 2021.  The required "Notice of Public Hearing" was published.  In accordance with Section 7.02 of the City Charter, the City Council shall, prior to the beginning of the next fiscal year, adopt the budget by a favorable majority of the full membership of the City Council.  Final adoption of the budget by the City shall constitute the official appropriations as proposed by the City Manager for the fiscal year beginning October 1, 2021, and ending September 30, 2022.  Additionally, the General Fund budget of programs and services shall constitute the basis of the official levy of the property tax as the amount of tax to be assessed and collected for the corresponding tax year.

POLICY CONSIDERATIONS

This document sets the financial and operational direction of the City for the next year. 

The proposed tax rate is $0.700734 per $100 assessed value.  The proposed 21-22 Budgeted Expenditures are as follows:

The total amount includes $8,429,364 in inter-fund transfers.

RECOMMENDATION

Approve an ordinance approving and adopting the budget for the fiscal year beginning October 1, 2021, and ending September 30, 2022.

BACKGROUND

The proposed rate is not greater than the no-new-revenue tax rate.  This means that the City of Sachse is not proposing to increase property taxes for the 2021 tax year.

The tax rate consists of two components, the Debt Service (I&S) rate of $0.194207 which is unchanged from the previous year; and, the Maintenance & Operation (M&O) rate of $0.506527, which is $0.019266 lower than the previous year. 

POLICY CONSIDERATIONS

There are no policy considerations affiliated this item.

RECOMMENDATION

Approve an ordinance levying ad valorem taxes for the year 2021 (Fiscal Year 2021-2022) at a rate of $.700734 per one hundred dollars ($100) assessed valuation on all taxable property within the corporate limits of the City of Sachse as of January 1, 2021, to provide revenue for the payment of current expenses; providing for an interest and sinking fund for all outstanding debts of the City of Sachse; providing for due and delinquent dates together with penalties and interest; providing a severability clause; providing a repealing clause; and providing an effective date.

BACKGROUND

The Garland Independent School District (GISD) has changed school release time to ten minutes later than in previous years. This has resulted in the necessity to modify the school zone activation length on Ben Davis Road, relative to Armstrong Elementary.

OVERVIEW

Currently, exact school zone activation times are specified within the code of ordinances. The ordinance is being modified to remove the exact time annotations, which will allow for adjustment of school zone activation timing as necessary to accommodate GISD or Wylie Independent School District (WISD) scheduling changes or changes in traffic or pedestrian patterns. 

POLICY CONSIDERATIONS

There are no policy considerations affiliated with this item.

RECOMMENDATION

Staff recommends approval of the amended ordinance provisions. 

BACKGROUND

At the last City Council meeting, staff presented the Public Safety Quarantine Policy, affiliated with HB 2073 and in accordance with Chapter 180.008 of the Local Government Code. Upon conclusion of the item, Council requested that staff return with a Quarantine Leave policy that applies to all City of Sachse employees.

POLICY CONSIDERATIONS

This revised Quarantine Leave policy applies to all City of Sachse employees. It encompasses the requirements for a paid quarantine leave policy for public safety and meets the intent of HB 2073 and the requirements of Chapter 180.008. 

RECOMMENDATION

Staff recommends accepting the City of Sachse Quarantine Leave Policy, as presented.