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01-24-2023 (City Council) Agenda Packet Wylie City Council Regular Meeting January 24, 2023 —6:00 PM Council Chambers - 300 Country Club Road,Building#100,Wylie, Texas 75098 CITY CALL TO ORDER INVOCATION&PLEDGE OF ALLEGIANCE COMMENTS ON NON-AGENDA ITEMS Any member of the public may address Council regarding an item that is not listed on the Agenda.Members of the public must fill out a form prior to the meeting in order to speak. Council requests that comments be limited to three minutes for an individual, six minutes for a group. In addition, Council is not allowed to converse, deliberate or take action on any matter presented during citizen participation. CONSENT AGENDA All matters listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by one motion. There will not be separate discussion of these items.If discussion is desired, that item will be removed from the Consent Agenda and will be considered separately. A. Consider, and act upon, approval of the January 10, 2023 Regular City Council Meeting minutes. B, Consider,and act upon,the City of Wylie Monthly Revenue and Expenditure Report for December 31,2022. C. Consider, and place on file,the City of Wylie Monthly Investment Report for December 31, 2022. D. Consider, and place on file, the monthly Revenue and Expenditure Report for the Wylie Economic Development Corporation as of November 30, 2022. E. Consider, and place on file, the monthly Revenue and Expenditure Report for the Wylie Economic Development Corporation as of December 31, 2022. F. Consider, and act upon, approving the revised Financial Management Policies. G. Consider, and act upon,the approval of the 2023 Procurement Manual. H. Consider, and act upon, Ordinance No. 2023-04 for a change in zoning from Commercial Corridor(CC) to Commercial Corridor- Special Use Permit(CC-SUP)to allow for an auto sales use on 1.27 acres located at 2021 N. State Highway 78 (ZC 2022-15). 1. Consider, and act upon, Ordinance No. 2023-05 for a change in zoning from Downtown Historic District (DTH) to Downtown Historic District - Special Use Permit (DTH-SUP) to allow for a brewery, food truck park,and events center within the Downtown Historic District,property located at 106 N.Birmingham Street (ZC 2022-16). J. Consider, and act upon, Ordinance No. 2023-06 for a change in zoning from Downtown Historic District— Residential only to allow Commercial and/or Residential uses, located at 280 W. Brown St. within the Downtown Historic District(ZC 2022-18). Page 11 7 REGULAR AGENDA I. Hold a Public Hearing to discuss the need to continue, abolish or modify the City of Wylie Juvenile Curfew Ordinance No. 2020-22. 2. Present, and place on file,the Wylie Economic Development Corporation 2022 Annual Report. 3. Consider,and act upon, acceptance of the Annual Comprehensive Financial Report(ACFR)for FY 2021-22 following a presentation by the audit firm Weaver, LLP. 4. Consider, and act upon, the acceptance of the resignation of Tim Gilchrist and the appointment of a new board member to the City of Wylie Economic Development Corporation to fill the term of January 2023 to June 30,2023. EXECUTIVE SESSION Sec. 551.072. DELIBERATION REGARDING REAL PROPERTY; CLOSED MEETING. A governmental body may conduct a closed meeting to deliberate the purchase, exchange, lease, or value of real property if deliberation in an open meeting would have a detrimental effect on its negotiating position. ES I. Consider the sale or acquisition of properties located at Country Club/Brown and FM 544/Sanden. RECONVENE INTO OPEN SESSION Take any action as a result from Executive Session. READING OF ORDINANCES Title and caption approved by Council as required by Wylie City Charter,Article III, Section 13-D. ADJOURNMENT CERTIFICATION I certify that this Notice of Meeting was posted on January 20, 2023 at 5:00 p.m. on the outside bulletin board at Wylie City Hall, 300 Country Club Road,Building 100,Wylie,Texas,a place convenient and readily accessible to the public at all times. Stephanie Storm, City Secretary Date Notice Removed The Wylie Municipal Complex is wheelchair accessible. Sign interpretation or other special assistance for disabled attendees must be requested 48 hours in advance by contacting the City Secretary's Office at 972.516.6020.Hearing impaired devices are available from the City Secretary prior to each meeting. If during the course of the meeting covered by this notice, the City Council should determine that a closed or executive meeting or session of the City Council or a consultation with the attorney for the City should be held or is required, then such closed or executive meeting or session or consultation with attorney as authorized by the Texas Open Meetings Act,Texas Government Code§ 551.001 et. seq.,will be held by the City Council at the date, hour and place given in this notice as the City Council may conveniently meet in such closed or executive meeting Page 12 2 or session or consult with the attorney for the City concerning any and all subjects and for any and all purposes permitted by the Act, including,but not limited to,the following sanctions and purposes: Texas Government Code Section: § 551.071 —Private consultation with an attorney for the City. § 551.072—Discussing purchase, exchange,lease or value of real property. § 551.074—Discussing personnel or to hear complaints against personnel. § 551.087—Discussing certain economic development matters. § 551.073—Discussing prospective gift or donation to the City. § 551.076—Discussing deployment of security personnel or devices or security audit. Page 13 3 01/24/2023 Item A. Wylie City Council CITY OF AGENDA REPORT Department: City Secretary Account Code: Prepared By: Stephanie Storm Subject Consider, and act upon, approval of the January 10, 2023 Regular City Council Meeting minutes. Recommendation Motion to approve the Item as presented. Discussion The minutes are attached for your consideration. 4 01/24/2023 Item A. Wylie City Council Regular Meeting Minutes January 10, 2023 —6:00 PM Council Chambers - 300 Country Club Road,Building#100,Wylie, Texas 75098 CITY CALL TO ORDER Mayor Matthew Porter called the regular meeting to order at 6:00 p.m. The following City Council members were present: Councilman David R. Duke, Councilman Dave Strang, Mayor pro tern Jeff Forrester, Councilman Scott Williams, Councilman Timothy T. Wallis, and Councilman Garrett Mize. City Manager Brent Parker; Deputy City Manager Renae 011ie; Assistant Police Chief Tommy Walters; Finance Director Melissa Brown; Fire Chief Brandon Blythe; Digital Media Specialist Kristina Kelly; City Secretary Stephanie Storm; Community Services Director Jasen Haskins; Wylie Economic Development Executive Director Jason Greiner; and various support staff. INVOCATION& PLEDGE OF ALLEGIANCE Mayor pro tern Forrester led the invocation and Councilman Strang led the Pledge of Allegiance. PRESENTATIONS &RECOGNITIONS PR1. Shining the Wylie Way Students. Mayor Porter, WISD School Board President Stacie Smith, and WISD Superintendent David Vinson presented medallions to students demonstrating "Shining the Wylie Way." Every nine weeks one student from each WISD campus is chosen as the"Wylie Way Student." COMMENTS ON NON-AGENDA ITEMS Any member of the public may address Council regarding an item that is not listed on the Agenda.Members of the public must fill out a form prior to the meeting in order to speak. Council requests that comments be limited to three minutes for an individual, six minutes for a group. In addition, Council is not allowed to converse, deliberate or take action on any matter presented during citizen participation. Robert Heath addressed Council thanking staff,the EDC, and Council for all that they do. CONSENT AGENDA All matters listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by one motion. There will not be separate discussion of these items.If discussion is desired, that item will be removed from the Consent Agenda and will be considered separately. A. Consider, and act upon, approval of the December 13,2022 Regular City Council Meeting minutes. B. Consider, and act upon, the City of Wylie Monthly Revenue and Expenditure Report for November 30,2022. C. Consider, and place on file,the City of Wylie Monthly Investment Report for November 30,2022. Page I1 5 01/24/2023 Item A. D. Consider, and act upon, Ordinance No. 2023-01 amending Ordinance No. 2022-56,which established the budget for fiscal year 2022-2023; providing for repealing, savings and severability clauses; and providing for an effective date of this ordinance. E. Consider, and act upon, a Preliminary Plat for City Center,Lot 1,Block A,establishing one commercial lot on 1.169 acres,located at 791 S. State Highway 78. F. Consider, and act upon, a Final Plat of Woodbridge Crossing Addition,Lot 17R-3,Block A, being an amended plat of Lot 17R,Woodbridge Crossing Addition, establishing one commercial lot on 7.2915 acres,located at 3026 W.FM 544. G. Consider, and act upon, Ordinance No. 2023-02 regarding a change in zoning from Commercial Corridor(CC)to Planned Development-Commercial Corridor(PD-CC)to allow for commercial uses on 11.622 acres generally located on the southwest corner of State Highway 78 and Brown Street (ZC 2022-13). H. Consider, and place on file,the Animal Shelter Advisory Board report to City Council. I. Consider, and act upon, the approval for the demolition of a residential structure in accordance with Ordinance No.2022-34.Property located at 200 W.Brown St.within the Downtown Historic District. J. Consider, and act upon, the approval of the purchase of uniform clothing, footwear, and uniform services from Cintas Corporation in the estimated annual amount of$50,000.00 through an annual cooperative purchasing contract with OMNIA Partners Purchasing Cooperative, and authorizing the City Manager to execute any necessary documents. Council Action A motion was made by Mayor pro tern Forrester, seconded by Councilman Williams, to approve the Consent Agenda as presented. A vote was taken and the motion passed 7-0. REGULAR AGENDA 1. Tabled from 12-13-2022 Remove from table and consider Council Action A motion was made by Councilman Mize, seconded by Councilman Williams, to remove Item 1 from the table to consider. A vote was taken and the motion passed 7-0. Hold a Public Hearing,consider, and act upon, a change in zoning from Commercial Corridor(CC) to Commercial Corridor - Special Use Permit (PD-SUP) to allow for an auto sales use on 1.27 acres located at 2021 N. State Highway 78 (ZC 2022-15). Staff Comments Community Services Director Haskins addressed Council stating on December 13, 2022, the City Council tabled this item in order for staff to discuss with the applicant the financing side of the automotive sales use.The applicant has stated that all financing will be off-site; therefore, the SUP conditions have been updated to ensure that an alternative financial institution will not be allowed on the site. Council Comments Councilman Williams confirmed the proposed number of parking spaces meets the minimum requirements and asked if anything could be included in the Planned Development(PD)to restrict overflow parking at neighboring businesses. Haskins replied verbiage could be added; however,the properties surrounding this area have not been developed yet and added they are not a major automotive repair facility, and the City does have public nuisance Page 12 6 01/24/2023 Item A. provisions in place. Williams stated if staff feels comfortable with enforcing this potential issue without adding verbiage in the PD he is comfortable with that. Haskins replied there are laws in place that would prohibit this potential issue. Mayor pro tern Forrester stated he shared the same concern and gave an example of a minor automotive repair facility in the City that has overflow parking in neighboring businesses. Forrester asked if the staff sees a shared parking agreement in the future between surrounding businesses.Mayor Porter asked if verbiage could be added that cross-parking is prohibited in the PD. Haskins stated the applicant could request a shared parking agreement in the future and staff could prohibit the possibility in the future. Deputy City Manager 011ie added a shared parking agreement would have to come before Council to be considered, and language could be added to the PD for this particular property only (Lot 1, Block A) that states all parking has to be onsite. Councilman Wallis added future businesses may not mind overflow parking on their property if they are not utilizing it and would not want to include verbiage that would prohibit those businesses from bringing a shared parking agreement back to Council for consideration. Public Hearing Mayor Porter opened the public hearing on Item 1 at 6:31 p.m. asking anyone present wishing to address Council to come forward. Barzan Abdulhameed, the applicant, addressed Council stating he owns the entire property and it will all be one business. Mayor Porter closed the public hearing at 6:34 p.m. Council Action A motion was made by Councilman Mize, seconded by Councilman Wallis,to approve Item 1 as presented. A vote was taken and the motion passed 6-1 with Mayor pro tern Forrester voting against. 2. Hold a Public Hearing, consider, and act upon, Ordinance No. 2023-03 regarding an Amendment to the City of Wylie Zoning Ordinance,Article 5.1 Land Use Charts and Article 5.2 Listed Uses as they relate to Accessory and Temporary Uses of Donation Boxes (ZC 2022-19). Staff Comments Community Services Director Haskins addressed Council stating at the November 2022 City Council meeting a work session was held on a potential amendment to the Zoning Ordinance regarding donation boxes. Staff presented proposed amendments which Council generally agreed on and asked staff to finalize the amendments for adoption. Included in the proposed amendments is allowing one donation box per five acres on large developments. The Planning and Zoning Commission voted 5-0 to recommend approval. Council Comments Mayor Porter added the temporary permits would be good for 90 days with the potential to apply for an additional 30 days.Mayor pro tern Forrester clarified the 90 days with the 30-day extension was annual. Haskins replied that is correct. Councilman Williams confirmed there is a difference between manned and unmanned units written into the proposed Ordinance. Haskins confirmed that the Ordinance does address the two units. Public Hearing Mayor Porter opened the public hearing on Item 2 at 6:38 p.m. asking anyone present wishing to address Council to come forward. No one came forward for the public hearing. Mayor Porter closed the public hearing at 6:39 p.m. Council Action A motion was made by Councilman Strang, seconded by Councilman Mize,to approve Item 2 as presented.A vote was taken and the motion passed 7-0. Page 13 7 01/24/2023 Item A. 3. Hold a Public Hearing, consider, and act upon, a change in zoning from Downtown Historic District (DTH) to Downtown Historic District - Special Use Permit (DTH-SUP) to allow for a brewery, food truck park, and events center within the Downtown Historic District, property located at 106 N. Birmingham Street(ZC 2022-16). Staff Comments Community Services Director Haskins addressed Council stating the applicant is requesting a Special Use Permit (SUP) to allow for a brewery, food truck park, and events center use at 106 N. Birmingham Street. The SUP conditions allow the Brewery,Food Truck Park,and Events Center as uses while setting hours of operation,parking requirements, and design standards. The SUP standards eliminate the distance requirement from any existing or future schools, churches, or alcohol establishments where normally, those distance requirements are 300 feet. The applicant is requesting that no parking be required on site. There are 22 off-street parking spaces within 150 feet, 75+additional within 300 feet,and Oak Street is wide enough to allow for some on-street parking. The applicant is requesting that the company's trademark colors be allowed in the design of the building. Those colors are generally represented in the Zoning Exhibit. The Historic Review Commission discussed the zoning request at their November 17, 2022 meeting, ultimately voting 5-0 to recommend approval with conditions on the hours of operation being restricted to closing at 9 p.m. Monday through Thursday and closing at 12 a.m. on Friday through Sunday. The Planning and Zoning Commission voted 5-0 to recommend approval. Haskins reported notices were sent to 13 property owners within 200 feet as required by state law and at the time of posting one response was received in favor and one in opposition of the request.Haskins further explained that currently there are no schools, churches, or alcohol establishments within the distance requirements; however, the applicant is requesting the variance in the SUP in the event of any potential future businesses that may come in before the brewery is opened, which would then require the applicant to come back before Council for separate approval. Council Comments Mayor pro tern Forrester asked if the offsite parking takes into consideration the recent discussions regarding potential future traffic flow patterns and parking arrangements. Haskins replied staff did review it under the current conditions with the knowledge of future improvements in the area. Forrester asked for the timeline of the project. Haskins replied he was unsure but the applicant was present.Councilman Wallis asked where the food trucks would be parked, and wanted to ensure the theme and decor mesh well with the Downtown Historic District. Haskins replied the applicant will have to provide a site plan and last staff had discussed with the applicant they were thinking about allowing the food truck in a parking space in the alley,and regarding the theme and decor the HRC did request that they lower the signage to be no higher than the surrounding rooftops. Forrester asked about the comment form that was received in opposition stating that the architecture does not fit the historic downtown and asked if the HRC is satisfied with what is proposed downtown. 011ie replied that according to the definitions for the HRC, this building is non-contributing as it has no historical value to the building except that it is old. The Commission focused on what is being proposed which enhances what is currently there, and putting the proposed sign on the building gives it the"old"character. Steve Schoenekase, the applicant, addressed Council giving a history of the business originating from his great- grandfather's Glen Echo Dairy farm founded in the late 1800s in Illinois sharing the same name and logo. Schoenekase stated the original colors from the dairy farm were orange and brown so to liven it up a little the brown was changed to Bavarian blue as he is a descendant of Germany and his great-grandfather learned the craft of dairy farming in Bavaria. Schoenekase added an old historic font that will be used on the signage and the sign will be lowered and pulled out in front of the business. Schoenekase stated the intent of this business is to provide a gathering place for families and friends to hang out. Councilman Wallis asked where the parking for food trucks would be. Schoenekase replied a pad in the back of the alley will be a designated food truck parking space. Mayor Porter confirmed power would be provided for the food truck. Schoenekase replied yes it will be provided from the building so that they do not have to utilize generators. Councilman Williams asked what the round blue figures are in the exhibit. Schoenekase replied they are metal barrels that will be used to help delineate the patio space. Williams asked how many employees and patrons will be there at a given time. Schoenekase replied about four to six employees, and there will be seating for 60-80 inside and 40-60 outside.Williams stated he loved the idea but expressed concerns with the lack of parking on Birmingham Page 14 8 01/24/2023 Item A. and onsite, and asked if the applicant would be open to reducing the patio space. Schoenekase replied if they cut the patio space in half it would no longer be usable and stated some examples of other local breweries that have no onsite parking. Councilman Mize stated he was excited about the idea, and while he understands the parking concerns added there is public parking along Jackson St. as well as two additional parking lots on Jackson St., and with those, feels there should be adequate parking available and people will be willing to walk a block or two. Schoenekase stated they hope to open this summer. Public Hearing Mayor Porter opened the public hearing on Item 3 at 7:04 p.m. asking anyone present wishing to address Council to come forward. James Alexander,owner of the Blend on Ballard, stated he thought this was a great concept but expressed concerns with the food trucks hindering and hurting small businesses in downtown Wylie and added they should try to utilize the downtown food businesses. Marvin Fuller addressed Council stating he likes the concept and idea, and expressed concerns with no onsite parking and the food truck being located in the alley, and believes a lot of the concerns can be alleviated if the EDC is successful with gaining the additional parking along the railroad and maybe at that time allow food trucks. DJ Shirley addressed Council stating this would be a good addition to downtown and would bring commerce and people to downtown. Mayor Porter closed the public hearing at 7:10 p.m. Applicant Comments Debbie Schoenekase, the applicant, responded to some of the concerns stating they would not have a food truck every day as their focus would be making beer and providing an area for people to come and hang out. They would only have one to two food trucks at a time and are open to having local businesses set up tables inside the brewery to serve at. Schoenekase stated they want this to be beneficial for all of Wylie and do not want to take anything away from other businesses and will work with other businesses on their hours of operation. Council Action A motion was made by Councilman Strang, seconded by Mayor pro tern Forrester,to approve Item 3 as presented. A vote was taken and the motion passed 6-1 with Councilman Williams voting against. 4. Hold a Public Hearing,consider, and act upon,a change in zoning from Downtown Historic District— Residential only to allow Commercial and/or Residential uses,located at 280 W. Brown Street within the Downtown Historic District(ZC 2022-18). Staff Comments Community Services Director Haskins addressed Council stating per Section 6.3 of the Zoning Ordinance, the Downtown Historic (DTH) District allows for both commercial and/or residential uses in the same structure; however, some properties are restricted to residential uses only as adopted by Ordinance No. 2015-08. This request is to rezone 280 W.Brown Street from DTH-residential only to DTH-commercial and/or residential.In March 2022, the adjacent lot at 401 N.Keefer was rezoned by Ordinance No. 2022-25 to allow for commercial and/or residential uses. The Historic Review Commission and the Planning and Zoning Commission both voted 5-0 to recommend approval as presented.Notifications were mailed to 24 surrounding property owners with one response received in favor of the request. Public Hearing Mayor Porter opened the public hearing on Item 4 at 7:15 p.m. asking anyone present wishing to address Council to come forward. No one came forward for the public hearing. Page 15 9 01/24/2023 Item A. Mayor Porter closed the public hearing at 7:15 p.m. Council Action A motion was made by Mayor pro tern Forrester, seconded by Councilman Strang,to approve Item 4 as presented. A vote was taken and the motion passed 7-0. 5. Consider, and act upon, Resolution No. 2023-01(R) establishing a public newspaper of general circulation to be the"Official Newspaper"for the City of Wylie. Staff Comments City Secretary Storm addressed Council stating each year the Council has to establish an official newspaper for the City of Wylie for publication purposes, and staff included pricing for both the Wylie News and Dallas Morning News in the agenda packet for Council's consideration. Council Action A motion was made by Councilman Strang,seconded by Mayor pro tern Forrester,to approve Resolution No.2023- 01(R) establishing the Wylie News as the "Official Newspaper" of the City of Wylie. A vote was taken and the motion passed 7-0. EXECUTIVE SESSION Mayor Porter convened the Council into Executive session at 7:18 p.m. Sec. 551.072. DELIBERATION REGARDING REAL PROPERTY; CLOSED MEETING. A governmental body may conduct a closed meeting to deliberate the purchase, exchange, lease, or value of real property if deliberation in an open meeting would have a detrimental effect on its negotiating position. ES1. Consider the sale or acquisition of properties located at Ballard/Brown, Brown/Eubanks, FM 544/Cooper,FM 544/Sanden,Jackson/Oak,Regency/Steel,State Hwy 78/Alanis,State Hwy 78/Ballard, and State Hwy 78/Brown. Sec. 551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS; CLOSED MEETING. This chapter does not require a governmental body to conduct an open meeting: (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay,or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision(1). ES2. Deliberation regarding commercial or financial information that the WEDC has received from a business prospect and to discuss the offer of incentives for Projects: 2013-9a, 2017-6a,2021-2d,2021- 5a, 2021-6a, 2021-6c, 2021-8a, 2021-9a, 2021-9b, 2021-9f, 2021-11a, 2022-1b, 2022-4d, 2022-7b, 2022- 7c,2022-8b,2022-9f,2022-1.0d,2022-11a, and 2022-12a. RECONVENE INTO OPEN SESSION Take any action as a result from Executive Session. Mayor Porter reconvened the Council into Open Session at 7:51 p.m. Page 16 10 01/24/2023 Item A. Council Action A motion was made by Mayor pro tern Forrester, seconded by Councilman Strang, to authorize the Wylie EDC to enter into a Performance Agreement with Project 2021-1 la in an amount not to exceed$30,000. A vote was taken and the motion passed 7-0. READING OF ORDINANCES Title and caption approved by Council as required by Wylie City Charter,Article III, Section 13-D. City Secretary Storm read the captions to Ordinance Nos. 2023-01,2023-02, and 2023-03 into the official record. ADJOURNMENT A motion was made by Councilman Strang, seconded by Mayor pro tern Forrester, to adjourn the meeting at 7:54 p.m. A vote was taken and the motion passed 7-0. Matthew Porter,Mayor ATTEST: Stephanie Storm, City Secretary Page 17 11 01/24/2023 Item B. Wylie City Council CITY OF AGENDA REPORT Department: Finance Account Code: Prepared By: Melissa Beard Subject Consider, and act upon, the City of Wylie Monthly Revenue and Expenditure Report for December 31,2022. Recommendation Motion to accept Item as presented. Discussion The Finance Department has prepared the attached reports for the City Council as required by the City Charter. 12 01/24/2023 Item B. CITY OF WYLIE MONTHLY FINANCIAL REPORT December 31,2022 ANNUAL CURRENT YTD ACTUAL Benchmark BUDGET MONTH ACTUAL YTD ACTUAL AS A PERCENT 25.00% ACCOUNT DESCRIPTION 2022-2023 2022-2023 2022-2023 OF BUDGET GENERAL FUND REVENUE SUMMARY TAXES 37,234,844 16,054,520 17,831,998 47.89% A FRANCHISE FEES 2,802,400 411,394 411,394 14.68% B LICENSES AND PERMITS 1,442,750 94,187 224,684 15.57% C INTERGOVERNMENTAL REV. 2,429,011 30,765 309,089 12.72% D SERVICE FEES 4,338,970 353,470 700,490 16.14% E COURT FEES 339,000 20,302 58,522 17.26% F INTEREST INCOME 60,000 89,237 225,132 375.22% G MISCELLANEOUS INCOME 215,417 8,310 18,223 8.46% OTHER FINANCING SOURCES 2,563,305 2,238 2,586,770 100.92% H REVENUES 51,425,697 17,064,423 22,366,302 43.49% USE OF FUND BALANCE 0 0 0 0.00% USE OF CARRY-FORWARD FUNDS 1,711,613 NA NA NA TOTAL REVENUES 53,137,310 17,064,423 22,366,302 42.09% GENERAL FUND EXPENDITURE SUMMARY CITY COUNCIL 95,165 11,141 20,874 21.93% CITY MANAGER 1,302,321 137,720 299,826 23.02% CITY SECRETARY 391,877 31,167 64,722 16.52% CITY ATTORNEY 170,000 0 24,321 14.31% FINANCE 1,359,949 357,474 482,898 35.51% J FACILITIES 1,051,596 119,612 208,015 19.78% MUNICIPAL COURT 580,378 51,062 109,068 18.79% HUMAN RESOURCES 817,788 77,578 178,769 21.86% PURCHASING 330,531 22,031 52,803 15.98% INFORMATION TECHNOLOGY 2,300,559 127,536 711,800 30.94% K POLICE 13,371,073 1,501,773 3,217,427 24.06% FIRE 12,804,776 1,318,596 2,921,095 22.81% EMERGENCY COMMUNICATIONS 2,397,904 205,136 423,637 17.67% ANIMAL CONTROL 729,459 67,403 154,052 21.12% PLANNING 373,797 38,398 87,072 23.29% BUILDING INSPECTION 599,708 39,918 86,679 14.45% CODE ENFORCEMENT 279,004 18,327 42,371 15.19% STREETS 5,230,598 494,406 805,091 15.39% PARKS 2,792,586 283,775 534,058 19.12% LIBRARY 2,319,659 237,003 547,227 23.59% COMBINED SERVICES 4,403,459 497,815 734,827 16.69% TOTAL EXPENDITURES 53,702,187 5,637,871 11,706,632 21.80% REVENUES OVER/(UNDER)EXPENDITURES -564,877 11,426,552 10,659,670 20.29% A.Property Tax Collections for FY22-23 as of December 31,2022 are 59.21%,in comparison to FY21-22 for the same time period of 65.16%. Sales tax is on a 2 month lag and only one month has been received and it was 28.51%higher than last year. B.Franchise Fees:The majority of franchise fees are recognized in the third and fourth quarter with electric fees making up the majority. C.Licenses and Permits: New Dwelling Permits are down 80%from the same period last fiscal year,partially due to rising interest rates. D.Intergovernmental Rev: The majority of intergovernmental revenues come from WISD reimbursements and Fire Services which are billed quarterly. E.Service Fees:Trash fees are on a one month lag and only two months have been received.The remaining fees are from other seasonal fees. F.Court Fees are down 29%from December YTD.Code Fines are down 57%from the same period last fiscal year. G.Interest Rates have gone from 1%when the budget was prepared to almost 4%in December 2022.Interest was budgeted conservatively. H.Yearly transfer from Utility Fund. I.Largest Carry Forward items:$150,000 for Department Software Solution,$217,000 for advance vehicle replacements,$338,840 for ambulance,$390,000 for Stone Road Rehab. J.Colin County Appraisal fee of$244,870 was paid in December. K.Annual maintenance agreements 13 01/24/2023 Item B. CITY OF WYLIE MONTHLY FINANCIAL REPORT December 31,2022 ANNUAL CURRENT YTD ACTUAL Benchmark BUDGET MONTH ACTUAL YTD ACTUAL AS A PERCENT 25.00% ACCOUNT DESCRIPTION 2022-2023 2022-2023 2022-2023 OF BUDGET UTILITY FUND REVENUES SUMMARY SERVICE FEES 25,933,619 2,167,596 4,808,355 18.54% L INTEREST INCOME 24,000 58,932 147,357 613.99% M MISCELLANEOUS INCOME 70,000 1,635 4,801 6.86% OTHER FINANCING SOURCES 0 0 0 0.00% REVENUES 26,027,619 2,228,163 4,960,513 19.06% USE OF FUND BALANCE 0 NA 0 0 USE OF CARRY-FORWARD FUNDS 2,276,241 NA NA NA N TOTAL REVENUES 28,303,860 NA 4,960,513 17.53% UTILITY FUND EXPENDITURE SUMMARY UTILITY ADMINISTRATION 619,070 75,990 134,194 21.68% UTILITIES-WATER 4,458,970 162,004 629,901 14.13% CITY ENGINEER 1,111,681 85,210 183,214 16.48% UTILITIES-SEWER 1,333,727 84,422 181,135 13.58% UTILITY BILLING 1,250,915 94,800 308,305 24.65% COMBINED SERVICES 18,380,749 1,178,626 5,680,005 30.90% 0 TOTAL EXPENDITURES 27,155,112 1,681,052 7,116,754 26.21% REVENUES OVER/(UNDER)EXPENDITURES 1,148,748 547,112 -2,156,241 -8.68% L.Most Utility Fund Revenue is on a one month lag and only two months have been received. M.Interest Rates have gone from 1%when the budget was prepared to almost 4%in December 2022.Interest was budgeted conservatively. N.Largest Carry Forward items: Department Software Solutions$135,730,Pump Station Backup Generators$1.6M,Newport Harbor Tank Repairs$130,000 and TXDOT payment$260,172. O.Annual transfer to the General Fund of$2.56 million. Other expenses are payments to NTMWD for water minimum and sewer treatment. 14 01/24/2023 Item C. Wylie City Council CITY OF AGENDA REPORT Department: Finance Account Code: Prepared By: Melissa Beard Subject Consider, and place on file,the City of Wylie Monthly Investment Report for December 31,2022. Recommendation Motion to accept the Item as presented. Discussion The Finance Department has prepared the attached reports for the City Council as required by the City Charter. 15 01/24/2023 Item C. 2022-2023 Investment Report December 31,2022 Money Market Accounts: MMA Certificates of Deposit: CCD Treasury Bills: T-Bills Treasury Notes: T-Notes Government Agency Notes: AN Invest. Principal Type Of Interest Purchase Maturity Number Amount Security Rate Issuer Date Date -1 1 $15,646,935.33 MMA 3.9799% Texpool 12/31/2006 NA 2 $16,192,339.00 MMA 3.9681% TexStar 3/15/2011 NA $31,839,274.33 Total Weighted Average Coupon: 3.9739% Money Markets: $31,839,274.33 Weighted Average Maturity(Days): 1.00 Certificates of Deposits: $0.00 $31,839,274.33 Weighted Average Coupon 4 5000% 4.0000% 3.5000% 3 0000% 2 5000% 2.0000% 1 5000% 1 0000% 0 5000% 0 0000% Dec 2021 Jan 2022 Feb 2022 Mar 2022 Apr 2022 May 2022 June 2022 July 2022 Aug 2022 Sep 2022 Oct 2022 Nov 2022 Dec 2022 I e ig Fin nee Director/Investment Officer 16 01/24/2023 Item D. Wylie City Council CITY OF AGENDA REPORT Department: WEDC Account Code: Prepared By: Jason Greiner Subject Consider,and place on file,the monthly Revenue and Expenditure Report for the Wylie Economic Development Corporation as of November 30, 2022. Recommendation Motion to approve the Item as presented. Discussion The Wylie Economic Development Corporation (WEDC) Board of Directors approved the attached financials on December 21, 2022. 17 01/24/2023 Item D. EC NO IC November Rev/Exp Report „ VELOPI II' T Account Summary For Fiscal: 2022-2023 Period Ending: 11/30/2022 Variance Original Current Period Fiscal Favorable Percent Total Budget Total Budget Activity Activity (Unfavorable) Remaining Fund:111-WYLIE ECONOMIC DEVEL CORP Revenue Category:400-Taxes 111 .4000 40210 SALES TAX 4,124,241.00 4,124,241.00 0.00 0.00 -4,124,241.00 100.00% Category:400-Taxes Total: 4,124,241.00 4,124,241.00 0.00 0.00 -4,124,241.00 100.00% Category:460-Interest Income 111 4000 46110 ALLOCATED INTEREST EARNINGS 6,000.00 6,000.00 0.00 18,470.40 12,470.40 307.84% Category:460-Interest Income Total: 6,000.00 6,000.00 0.00 18,470.40 12,470.40 207.84% Category:480-Miscellaneous Income 111 4000 48110 RENTAL INCOME 134,220.00 134,220.00 1,900.00 1,900.00 -132,320.00 98.58% 111 4000 4843C) GAIN/(LOSS)SALE OF CAP ASSETS 3,915,685.00 3,915,685.00 0.00 0.00 -3,915,685.00 100.00% Category:480-Miscellaneous Income Total: 4,049,905.00 4,049,905.00 1,900.00 1,900.00 -4,048,005.00 99.95% Revenue Total: 8,180,146.00 8,180,146.00 1,900.00 20,370.40 -8,159,775.60 99.75% Expense Category:510-Personnel Services 111 5611-51110 SALARIES 310,346.40 310,346.40 23,419.20 36,780.53 273,565.87 88.15% 111 5611 51130 OVERTIME 0.00 0.00 208.37 541.76 -541.76 0.00% 111 5611 51140 LONGEVITY PAY 914.00 914.00 916.00 916.00 -2.00 -0.22% 111 5613 51310 TMRS 48,245.30 48,245.30 3,804.27 5,926.96 42,318.34 87.71% 111 5611 51410 HOSPITAL&LIFE INSURANCE 51,987.17 51,987.17 4,155.35 8,329.71 43,657.46 83.98% 111 5611-51420 LONG-TERM DISABILITY 1,768.97 1,768.97 52.87 52.87 1,716.10 97.01% 111 5611 51440 FICA 19,298.12 19,298.12 1,391.99 2,166.94 17,131.18 88.77% 111 5611 51450 MEDICARE 4,513.27 4,513.27 325.56 506.81 4,006.46 88.77% 111 5611 514/0 WORKERS COMP PREMIUM 854.85 854.85 0.00 970.21 -115.36 -13.49% 1)1 5611 51480 UNEMPLOYMENT COMP(TWC) 1,080.00 1,080.00 0.00 0.00 1,080.00 100.00% Category:510-Personnel Services Total: 439,008.08 439,008.08 34,273.61 56,191.79 382,816.29 87.20% Category:520-Supplies 111 5611-52010 OFFICE SUPPLIES 5,000.00 5,000.00 89.69 89.69 4,910.31 98.21% 111 5611 52040 POSTAGE&FREIGHT 300.00 300.00 0.00 0.00 300.00 100.00% 111 5611-52810 FOOD SUPPLIES 3,000.00 3,000.00 21.15 21.15 2,978.85 99.30% Category:520-Supplies Total: 8,300.00 8,300.00 110.84 110.84 8,189.16 98.66% Category:540-Materials for Maintenance 111 5611-54510 FURNITURE&FIXTURES 2,500.00 2,500.00 0.00 0.00 2,500.00 100.00% 111 5611 54810 COMPUTER HARD/SOFTWARE 7,650.00 7,650.00 0.00 0.00 7,650.00 100.00% Category:540-Materials for Maintenance Total: 10,150.00 10,150.00 0.00 0.00 10,150.00 100.00% Category:560-Contractual Services 111 5611-56030 INCENTIVES 3,209,183.00 3,209,183.00 0.00 37,069.00 3,172,114.00 98.84% 111 5611 56040 SPECIAL SERVICES 34,770.00 34,770.00 157.50 3,462.38 31,307.62 90.04% 111 5611 56041 SPECIAL SERVICES-REAL ESTATE 276,300.00 276,300.00 1,598.42 1,598.42 274,701.58 99.42% 111 5613 56042 SPECIAL SERVICES-INFRASTRUCTURE 8,375,000.00 8,375,000.00 1,394.88 1,394.88 8,373,605.12 99.98% 111 5611 56080 ADVERTISING 129,100.00 129,100.00 7,657.77 10,657.77 118,442.23 91.74% 111 5611 56090 COMMUNITY DEVELOPMENT 54,950.00 54,950.00 4,472.34 5,872.34 49,077.66 89.31% 111 5611 56110 COMMUNICATIONS 7,900.00 7,900.00 176.96 176.96 7,723.04 97.76% 111 5611 56180 RENTAL 27,000.00 27,000.00 2,250.00 2,250.00 24,750.00 91.67% 111 5611 56210 TRAVEL&TRAINING 73,000.00 73,000.00 186.65 5,483.61 67,516.39 92.49% 111 5611 56250 DUES&SUBSCRIPTIONS 57,824.00 57,824.00 11,193.88 28,405.26 29,418.74 50.88% 111 5611 56310 INSURANCE 6,303.00 6,303.00 0.00 6,146.31 156.69 2.49% 111 5611 56510 AUDIT&LEGAL SERVICES 23,000.00 23,000.00 0.00 1,210.00 21,790.00 94.74% 111 5611 56570 ENGINEERING/ARCHITECTURAL 87,500.00 87,500.00 0.00 0.00 87,500.00 100.00% 12/922022 9.03,03 AM Page 1 of 4 18 01/24/2023 Item D. Budget Report For Fiscal:2022-2023 Period Ending:11/30/2022 Variance Original Current Period Fiscal Favorable Percent Total Budget Total Budget Activity Activity (Unfavorable) Remaining 111 5611 56610 UTILITIES-ELECTRIC 2,400.00 2,400.00 211.44 461.31 1,938.69 80.78% Category:560-Contractual Services Total: 12,364,230.00 12,364,230.00 29,299.84 104,188.24 12,260,041.76 99.16% Category:570-Debt Service&Capital Replacement 111 5611 57410 PRINCIPAL PAYMENT 575,973.97 575,973.97 24,255.03 71,356.05 504,617.92 87.61% 111 5611'47419 INTEREST EXPENSE 656,023.67 656,023.67 22,684.82 78,250.27 577,773.40 88.07% Category:570-Debt Service&Capital Replacement Total: 1,231,997.64 1,231,997.64 46,939.85 149,606.32 1,082,391.32 87.86% Category:580-Capital Outlay 111 5611_58110 LAND-PURCHASE PRICE 2,090,000.00 2,090,000.00 5,000.00 5,000.00 2,085,000.00 99.76% Category:580-Capital Outlay Total: 2,090,000.00 2,090,000.00 5,000.00 5,000.00 2,085,000.00 99.76% Expense Total: 16,143,685.72 16,143,685.72 115,624.14 315,097.19 15,828,588.53 98.05% Fund:111-WYLIE ECONOMIC DEVEL CORP Surplus(Deficit): -7,963,539.72 -7,963,539.72 -113,724.14 -294,726.79 7,668,812.93 96.30% Report Surplus(Deficit): -7,963,539.72 -7,963,539.72 -113,724.14 -294,726.79 7,668,812.93 96.30% 12/GP022 9 OG 0 AM Page f,of 4 19 01/24/2023 Item D. Budget Report For Fiscal:2022-2023 Period Ending:11/30/2022 Group Summary Variance Original Current Period Fiscal Favorable Percent Categor... Total Budget Total Budget Activity Activity (Unfavorable) Remaining Fund:111-WYLIE ECONOMIC DEVEL CORP Revenue 400-Taxes 4,124,241.00 4,124,241.00 0.00 0.00 -4,124,241.00 100.00% 460-Interest Income 6,000.00 6,000.00 0.00 18,470.40 12,470.40 207.84% 480-Miscellaneous Income 4,049,905.00 4,049,905.00 1,900.00 1,900.00 -4,048,005.00 99.95% Revenue Total: 8,180,146.00 8,180,146.00 1,900.00 20,370.40 -8,159,775.60 99.75% Expense 510-Personnel Services 439,008.08 439,008.08 34,273.61 56,191.79 382,816.29 87.20% 520-Supplies 8,300.00 8,300.00 110.84 110.84 8,189.16 98.66% 540-Materials for Maintenance 10,150.00 10,150.00 0.00 0.00 10,150.00 100.00% 560-Contractual Services 12,364,230.00 12,364,230.00 29,299.84 104,188.24 12,260,041.76 99.16% 570-Debt Service&Capital Replacement 1,231,997.64 1,231,997.64 46,939.85 149,606.32 1,082,391.32 87.86% 580-Capital Outlay 2,090,000.00 2,090,000.00 5,000.00 5,000.00 2,085,000.00 99.76% Expense Total: 16,143,685.72 16,143,685.72 115,624.14 315,097.19 15,828,588.53 98.05% Fund:111-WYLIE ECONOMIC DEVEL CORP Surplus(Deficit): -7,963,539.72 -7,963,539.72 -113,724.14 -294,726.79 7,668,812.93 96.30% Report Surplus(Deficit): -7,963,539.72 -7,963,539.72 -113,724.14 -294,726.79 7,668,812.93 96.30% 3.2/9i2072 9.0G:03 AM Page 3 of 4 20 01/24/2023 Item D. Budget Report For Fiscal:2022-2023 Period Ending:11/30/2022 Fund Summary Variance Original Current Period Fiscal Favorable Fund Total Budget Total Budget Activity Activity (Unfavorable) 111-WYLIE ECONOMIC DEVEL COR -7,963,539.72 -7,963,539.72 -113,724.14 -294,726.79 7,668,812.93 Report Surplus(Deficit): -7,963,539.72 -7,963,539.72 -113,724.14 -294,726.79 7,668,812.93 1 2,qi)02 2 9 OG 03 AM Page 4 of 4 21 01/24/2023 Item D. Wylie Economic Development Corporation Statement of Net Position As of November 30, 2022 Assets Cash and cash equivalents $ 11,127,834.40 Receivables $ 40,000.00 Note 1 Inventories $ 16,271,495.53 Prepaid Items $ - Total Assets $ 27,439,329.93 Deferred Outflows of Resources Pensions $ 75,630.55 Total deferred outflows of resources $ 75,630.55 Liabilities Accounts Payable and other current liabilities $ 8,148.26 Unearned Revenue $ 1,200.00 Note 2 Non current liabilities: Due within one year $ 543,774.87 Note 3 Due in more than one year $ 15,681,473.23 Total Liabilities $ 16,234,596.36 Deferred Inflows of Resources Pensions $ (45,385.41) Total deferred inflows of resources $ (45,385.41) Net Position Net investment in capital assets $ - Unrestricted $ 11,234,978.71 Total Net Position $ 11,234,978.71 Note 1: Includes incentives in the form of forgivable loans for$40,000(LUV-ROS) Note 2: Deposits from rental property Note 3: Liabilities due within one year includes compensated absences of$32,301 22 01/24/2023 Item D. WY L I EDEVELOP Balance Sheet Account Summary As Of 11/30/2022 Account Name Balance Fund:111-WYLIE ECONOMIC DEVEL CORP Assets CLAIM ON CASH AND CASH EQUIV. 11,164,747.20 1111000-1.011.5 CASH-WEDC-INWOOD 0.00 1.1.1-1000-10135 ESCROW 0.00 111-1000-10.130 DEPOSITS 2,000.00 111.11000-10'198 OTHER-MISC CLEARING 0.00 111-1000-1.0341 TEXPOOL 0.00 111 1000.10343 LOGIC 0,00 111-1000-1.0481 INTEREST RECEIVABLE 0.00 111-10CIQ-11511 ACCTS REC-MISC 0.00 1.1-1000-1'1517 ACCTS REC-SALES TAX 0.00 11i-1000-12810 LEASE PAYMENTS RECEIVABLE 0.00 111-1000-1..2950 LOAN PROCEEDS RECEIVABLE 0.00 1.11 1000 12996 LOAN RECEIVABLE 0.00 1.11-1000-1.2997 ACCTS REC-JTM TECH 0.00 1114000-12998 ACCTS REC-FORGIVEABLE LOANS 40,000.00 111-1010141122 INVENTORY-MATERIAL/SUPPLY 0.00 1114000-141.16 INVENTORY-LAND&BUILDINGS 16,271,495.53 111-1000-14118 INVENTORY-BAYCO/SANDEN BLVD 0.00 11-1000-14310 PREPAID EXPENSES-MISC 0.00 111-1000-1,4410 DEFERRED OUTFLOWS 683,934.00 Total Assets: 28,162,176.73 28,162,176.73 Liability 111-2000-20110 FEDERAL INCOME TAX PAYABLE 0.00 111-2000-20111 MEDICARE PAYABLE 0.00 111-2000-20112 CHILD SUPPORT PAYABLE 0.00 111-2000-20113 CREDIT UNION PAYABLE 0.00 111-2000-20114 IRS LEVY PAYABLE 0.00 1.11-2000-20115 NATIONWIDE DEFERRED COMP 0.00 111-2000-201.16 HEALTH INSUR PAY-EMPLOYEE 5,972.42 111-2000-20117 TMRS PAYABLE 5,522.30 111-2000-20118 ROTH IRA PAYABLE 0.00 111-2000-20119 WORKERS COMP PAYABLE 0.00 111 2 000-2 01.20 FICA PAYABLE 0.00 111-2000-20121 TEC PAYABLE 0.00 1:11-•2000-20122 STUDENT LOAN LEVY PAYABLE 0.00 111-2000-20123 ALIMONY PAYABLE 0.00 111.2000-201.24 BANKRUPTCY PAYABLE 0.00 111-2000-20125 VALIC DEFERRED COMP 0.00 111-2000-20126 ICMA PAYABLE 0.00 111-2000-20127 EMP.LEGAL SERVICES PAYABLE 0.00 111-2000-20130 FLEXIBLE SPENDING ACCOUNT 1,624.96 111-2000-20131 EDWARD JONES DEFERRED COMP 0.00 111 2000-2013"2 EMP CARE FLITE 12.00 111-2000-20133 Unemployment Comp Payable 0.01 111.-2000-20151 ACCRUED WAGES PAYABLE 0.00 111-2000-20180 ADDIT EMPLOYEE INSUR PAY 90.02 111 2000-20199 MISC PAYROLL PAYABLE 0.00 111-2 000-20 201 AP PENDING 0.00 11.1-20_00-2021.0 ACCOUNTS PAYABLE 0.00 111-2000-20530 PROPERTY TAXES PAYABLE 0.00 111-2000-20540 NOTES PAYABLE 683,934.00 111-2000-20810 DUE TO GENERAL FUND 0.00 1 . 0.... - PGicc 1 3 3...19iAc'uJJ d:`,;8:29 ANI � 23 01/24/2023 Item D. Balance Sheet As Of 11/30/2022 Account Name Balance 111 2000-222711 DEFERRED INFLOW 0.00 2noo 22275 DEF INFLOW-LEASE PRINCIPAL 0.00 111 2000 22 Z80 DEFERRED INFLOW-LEASE INT 0.00 111 2000 22915 RENTAL DEPOSITS 1,200.00 Total Liability: 698,355.71 Equity 111 300C)34110 FUND BALANCE-RESERVED 0.00 111 3000 34000 FUND BALANCE-UNRESERV/UNDESIG 27,758,547.81 Total Beginning Equity: 27,758,547.81 Total Revenue 20,370.40 Total Expense 315,097.19 Revenues Over/Under Expenses -294,726.79 Total Equity and Current Surplus(Deficit): 27,463,821.02 Total Liabilities,Equity and Current Surplus(Deficit): 28,162,176.73 24 01/24/2023 Item D. Balance Sheet As Of 11/30/2022 Account Name Balance Fund:922-GEN LONG TERM DEBT(WEDC) Assets 9224000-10312 GOVERNMENT NOTES 0.00 922-1000-1.8110 LOAN-WEDC 0.00 922-1000-18120 LOAN-BIRMINGHAM 0.00 9 2 2-1000-18 2 1 0 AMOUNT TO BE PROVIDED 0.00 922-1000-18220 BIRMINGHAM LOAN 0.00 922-1000-19050 DEF OUTFLOW TMRS CONTRIBUTIONS 39,535.29 922-1000-190,,5i_, DEF OUTFLOW SDBF CONTRIBUTIONS 3,027.00 922-1000-19075 DEF OUTFLOW-INVESTMENT EXP -37,953.52 922-1000-19100 DEF OUTFLOW-ACT EXP/ASSUMP 71,021.78 922-1000-19125 (GAIN)/LOSS ON ASSUMPTION CHGS -44,574.41 922.1000-10126 DEF INFLOW SDBF CONTRIBUTIONS -811.00 Total Assets: 30,245.14 30,245.14 Liability 922-2.000-20310 COMPENSATED ABSENCES PAYABLE 2,264.95 922-2000-20311 COMP ABSENCES PAYABLE-CURRENT 32,300.82 922-2000-21410 ACCRUED INTEREST PAYABLE 29,863.28 922-2000-28205 WEDC LOANS/CURRENT 504,617.92 92.2--2000-28220 BIRMINGHAM LOAN 0.00 922-2000-2823C) INWOOD LOAN 0.00 922-2000-28232 ANB LOAN/EDGE 0.00 922-2000-28233 ANB LOAN/PEDDICORD WHITE 0.00 922-2000-28734 ANB LOAN/RANDACK HUGHES 0.00 922-2000-28235 ANB LOAN 0.00 922.2000-282 36 ANB CONSTRUCTION LOAN 0.00 92.2-2000-28237 ANB LOAN/WOODBRIDGE PARKWAY 0.00 9222000-28238 ANB LOAN/BUCHANAN 0.00 922-2000-28239 ANB LOAN/JONES:HOBART PAYOFF 0.00 922-2000-28240 HUGHES LOAN 0,00 92.2-2000-28242 ANB LOAN/HWY 78:5TH ST REDEV 0.00 222-2000-28245 ANB LOAN/DALLAS WHIRLPOOL 0.00 922-2000-282.46 GOVCAP LOAN/KIRBY 7,551,644.87 922-2000--28247 JARRARD LOAN 112,611.20 922-2000-28248 GOVCAP LOAN/SERIES 2022 7,817,937.04 922-2000-28250 CITY OF WYLIE LOAN 0.00 922-2000-28260 PRIME KUTS LOAN 0.00 .922-2000--28270 BOWLAND/ANDERSON LOAN 0.00 922-2000-282.80 CAPITAL ONE CAZAD LOAN 0.00 922-2 00,0-2a 290 HOBART/COMMERCE LOAN 0.00 922-2000-29150 NET PENSION LIABILITY 185,989.17 922-2000-291.51 SDBF LIABILITY 11,026.00 Total Liability: 16,248,255.25 Equity 922--300CI-34„591 FUND BALANCE-UNRESERV/UNDESIG -16,169,102.16 922-3000-35900 UNRESTRICTED NET POSITION -120,264.00 Total Beginning Equity: -16,289,366.16 Total Revenue 0.00 Total Expense -71,356.05 Revenues Over/Under Expenses 71,356.05 Total Equity and Current Surplus(Deficit): -16,218,010.11 Total Liabilities,Equity and Current Surplus(Deficit): 30,245.14 12/9/202.2 8 58:29 AM 25 01/24/2023 Item D. Wylie Economic Development Corporation SALES TAX REPORT November 30,2022 BUDGETED YEAR DIFF % DIFF MONTH FY 2019 FY 2020 FY 2021 FY 2022 21 vs.22 21 vs.22 DECEMBER $ 214,867.15 $ 226,663.94 $ 235,381.33 $ 263,577.66 $ 28,196.33 11.98% JANUARY $ 223,749.61 $ 218,520.22 $ 262,263.52 $ 326,207.92 $ 63,944.40 24.38% FEBRUARY $ 307,366.66 $ 362,129.18 $ 456,571.35 $ 417,896.79 $ (38,674.56) -8.47% MARCH $ 208,222.32 $ 228,091.34 $ 257,187.91 $ 305,605.50 $ 48,417.59 18.83% APRIL $ 182,499.53 $ 203,895.57 $ 221,881.55 $ 265,773.80 $ 43,892.25 19.78% MAY $ 274,299.18 $ 289,224.35 $ 400,371.70 $ 401,180.20 $ 808.50 0.20% JUNE $ 234,173.88 $ 239,340.35 $ 290,586.92 $ 343,371.26 $ 52,784.34 18.16% JULY $ 215,107.94 $ 296,954.00 $ 314,559.10 $ 331,432.86 $ 16,873.76 5.36% AUGUST $ 283,602.93 $ 325,104.34 $ 390,790.76 $ 429,696.16 $ 38,905.40 9.96% SEPTEMBER $ 243,048.40 $ 259,257.89 $ 307,681.15 $ 337,512.61 $ 29,831.46 9.70% OCTOBER $ 224,875.38 $ 249,357.02 $ 326,382.38 $ 346,236.36 $ 19,853.99 6.08% * NOVEMBER $ 308,324.41 $ 384,953.89 $ 411,813.32 $ 392,790.84 $ (19,022.48) -4.62% Sub-Total $ 2,920,137.37 $ 3,283,492.09 $ 3,875,470.98 $ 4,161,281.96 $ 285,810.98 9.28% Total $ 2,920,137.37 $ 3,283,492.09 $ 3,875,470.98 $ 4,161,281.96 $ 285,810.98 9.28% WEDC Sales Tax Analysis $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 2021 $200,000 ■2022 $150,000 $100,000 $50,000 $0 P *November decrease is due to an audit collections adjustment in the amount of$179,533.05. Without consideration of the adjustment,collections are still up 6.28%for the month. ***Sales Tax collections typically take 2 months to be reflected as Revenue. SlsTx receipts are then accrued back 2 months. Example:November SlsTx Revenue is actually September SlsTx and is therefore the 12th allocation in FY22. 26 01/24/2023 Item E. Wylie City Council CITY OF AGENDA REPORT Department: WEDC Account Code: Prepared By: Jason Greiner Subject Consider,and place on file,the monthly Revenue and Expenditure Report for the Wylie Economic Development Corporation as of December 31, 2022. Recommendation Motion to approve the Item as presented. Discussion The Wylie Economic Development Corporation(WEDC)Board of Directors approved the attached financials on January 18, 2023. 27 01/24/2023 Item E. E ON MIC December Rev/Exp Report DEVELOP1 ENT Account Summary For Fiscal: 2022-2023 Period Ending: 12/31/2022 Variance Original Current Period Fiscal Favorable Percent Total Budget Total Budget Activity Activity (Unfavorable) Remaining Fund:111-WYLIE ECONOMIC DEVEL CORP Revenue Category:400-Taxes 111 .4000 40210 SALES TAX 4,124,241.00 4,124,241.00 338,726.54 338,726.54 -3,785,514.46 91.79% Category:400-Taxes Total: 4,124,241.00 4,124,241.00 338,726.54 338,726.54 -3,785,514.46 91.79% Category:460-Interest Income 111 4000 46110 ALLOCATED INTEREST EARNINGS 6,000.00 6,000.00 26,102.17 66,534.84 60,534.84 1,108.91% Category:460-Interest Income Total: 6,000.00 6,000.00 26,102.17 66,534.84 60,534.84 1,008.91% Category:480-Miscellaneous Income 111 4000 48110 RENTAL INCOME 134,220.00 134,220.00 36,267.68 38,167.68 -96,052.32 71.56% 111 4000 48430 GAIN/(LOSS)SALE OF CAP ASSETS 3,915,685.00 3,915,685.00 0.00 0.00 -3,915,685.00 100.00% Category:480-Miscellaneous Income Total: 4,049,905.00 4,049,905.00 36,267.68 38,167.68 -4,011,737.32 99.06% Revenue Total: 8,180,146.00 8,180,146.00 401,096.39 443,429.06 -7,736,716.94 94.58% Expense Category:510-Personnel Services 111 5611-51110 SALARIES 310,346.40 310,346.40 35,231.74 72,012.27 238,334.13 76.80% 111 5611 51130 OVERTIME 0.00 0.00 0.00 541.76 -541.76 0.00% 111 5611 51140 LONGEVITY PAY 914.00 914.00 0.00 916.00 -2.00 -0.22% 111 5613 51310 TMRS 48,245.30 48,245.30 5,519.82 11,446.78 36,798.52 76.27% 111 5611 51410 HOSPITAL&LIFE INSURANCE 51,987.17 51,987.17 4,099.36 12,504.07 39,483.10 75.95% 111 5611-51420 LONG-TERM DISABILITY 1,768.97 1,768.97 0.00 52.87 1,716.10 97.01% 111 5611 51440 FICA 19,298.12 19,298.12 2,078.21 4,245.15 15,052.97 78.00% 111 5611 51450 MEDICARE 4,513.27 4,513.27 486.05 992.86 3,520.41 78.00% 111 5611 514/0 WORKERS COMP PREMIUM 854.85 854.85 0.00 970.21 -115.36 -13.49% 1)1 5611 51480 UNEMPLOYMENT COMP(TWC) 1,080.00 1,080.00 0.00 0.00 1,080.00 100.00% Category:510-Personnel Services Total: 439,008.08 439,008.08 47,415.18 103,681.97 335,326.11 76.38% Category:520-Supplies 111 5611-52010 OFFICE SUPPLIES 5,000.00 5,000.00 296.97 386.66 4,613.34 92.27% 111 5611 52040 POSTAGE&FREIGHT 300.00 300.00 32.90 32.90 267.10 89.03% 111 5611-52810 FOOD SUPPLIES 3,000.00 3,000.00 293.96 315.11 2,684.89 89.50% Category:520-Supplies Total: 8,300.00 8,300.00 623.83 734.67 7,565.33 91.15% Category:540-Materials for Maintenance 111 5611-54610 FURNITURE&FIXTURES 2,500.00 2,500.00 0.00 0.00 2,500.00 100.00% 111 5611 54810 COMPUTER HARD/SOFTWARE 7,650.00 7,650.00 0.00 0.00 7,650.00 100.00% Category:540-Materials for Maintenance Total: 10,150.00 10,150.00 0.00 0.00 10,150.00 100.00% Category:560-Contractual Services 111 5611-56030 INCENTIVES 3,209,183.00 3,209,183.00 0.00 37,069.00 3,172,114.00 98.84% 111 5611 56040 SPECIAL SERVICES 34,770.00 34,770.00 7,715.00 11,177.38 23,592.62 67.85% 111 5611 56041 SPECIAL SERVICES-REAL ESTATE 276,300.00 276,300.00 2,995.42 4,593.84 271,706.16 98.34% 111 5613 56042 SPECIAL SERVICES-INFRASTRUCTURE 8,375,000.00 8,375,000.00 7,886.58 9,281.46 8,365,718.54 99.89% 111 5611 56080 ADVERTISING 129,100.00 129,100.00 3,181.75 13,839.52 115,260.48 89.28% 111 5611 56090 COMMUNITY DEVELOPMENT 54,950.00 54,950.00 12,572.36 18,444.70 36,505.30 66.43% 111 5611 56110 COMMUNICATIONS 7,900.00 7,900.00 765.20 942.16 6,957.84 88.07% 111 5611 56180 RENTAL 27,000.00 27,000.00 4,500.00 6,750.00 20,250.00 75.00% 111 5611 56210 TRAVEL&TRAINING 73,000.00 73,000.00 4,136.02 9,619.63 63,380.37 86.82% 111 5611 56250 DUES&SUBSCRIPTIONS 57,824.00 57,824.00 7,126.81 35,532.07 22,291.93 38.55% 111 5611 56310 INSURANCE 6,303.00 6,303.00 0.00 6,146.31 156.69 2.49% 111 5611 56510 AUDIT&LEGAL SERVICES 23,000.00 23,000.00 3,035.00 4,245.00 18,755.00 81.54% 111 5611 56570 ENGINEERING/ARCHITECTURAL 87,500.00 87,500.00 13,420.00 13,420.00 74,080.00 84.66% 121722023 3 09 05 PM Page 1 of 4 28 01/24/2023 Item E. Budget Report For Fiscal:2022-2023 Period Ending:12/31/2022 Variance Original Current Period Fiscal Favorable Percent Total Budget Total Budget Activity Activity (Unfavorable) Remaining 111 5611 56610 UTILITIES-ELECTRIC 2,400.00 2,400.00 0.00 461.31 1,938.69 80.78% Category:560-Contractual Services Total: 12,364,230.00 12,364,230.00 67,334.14 171,522.38 12,192,707.62 98.61% Category:570-Debt Service&Capital Replacement 111 5611 57410 PRINCIPAL PAYMENT 575,973.97 575,973.97 47,423.90 141,787.10 434,186.87 75.38% 111 5611'47411, INTEREST EXPENSE 656,023.67 656,023.67 55,242.57 166,212.31 489,811.36 74.66% Category:570-Debt Service&Capital Replacement Total: 1,231,997.64 1,231,997.64 102,666.47 307,999.41 923,998.23 75.00% Category:580-Capital Outlay 111 5611_541110 LAND-PURCHASE PRICE 2,090,000.00 2,090,000.00 340,441.57 345,441.57 1,744,558.43 83.47% 111 5611'48991., CONTRA CAPITAL OUTLAY 0.00 0.00 -345,441.57 -345,441.57 345,441.57 0.00% Category:580-Capital Outlay Total: 2,090,000.00 2,090,000.00 -5,000.00 0.00 2,090,000.00 100.00% Expense Total: 16,143,685.72 16,143,685.72 213,039.62 583,938.43 15,559,747.29 96.38% Fund:111-WYLIE ECONOMIC DEVEL CORP Surplus(Deficit): -7,963,539.72 -7,963,539.72 188,056.77 -140,509.37 7,823,030.35 98.24% Report Surplus(Deficit): -7,963,539.72 -7,963,539.72 188,056.77 -140,509.37 7,823,030.35 98.24% 1,17/2023 3 03 0',pm Page 3 of 4 29 01/24/2023 Item E. Budget Report For Fiscal:2022-2023 Period Ending:12/31/2022 Group Summary Variance Original Current Period Fiscal Favorable Percent Categor... Total Budget Total Budget Activity Activity (Unfavorable) Remaining Fund:111-WYLIE ECONOMIC DEVEL CORP Revenue 400-Taxes 4,124,241.00 4,124,241.00 338,726.54 338,726.54 -3,785,514.46 91.79% 460-Interest Income 6,000.00 6,000.00 26,102.17 66,534.84 60,534.84 1,008.91% 480-Miscellaneous Income 4,049,905.00 4,049,905.00 36,267.68 38,167.68 -4,011,737.32 99.06% Revenue Total: 8,180,146.00 8,180,146.00 401,096.39 443,429.06 -7,736,716.94 94.58% Expense 510-Personnel Services 439,008.08 439,008.08 47,415.18 103,681.97 335,326.11 76.38% 520-Supplies 8,300.00 8,300.00 623.83 734.67 7,565.33 91.15% 540-Materials for Maintenance 10,150.00 10,150.00 0.00 0.00 10,150.00 100.00% 560-Contractual Services 12,364,230.00 12,364,230.00 67,334.14 171,522.38 12,192,707.62 98.61% 570-Debt Service&Capital Replacement 1,231,997.64 1,231,997.64 102,666.47 307,999.41 923,998.23 75.00% 580-Capital Outlay 2,090,000.00 2,090,000.00 -5,000.00 0.00 2,090,000.00 100.00% Expense Total: 16,143,685.72 16,143,685.72 213,039.62 583,938.43 15,559,747.29 96.38% Fund:111-WYLIE ECONOMIC DEVEL CORP Surplus(Deficit): -7,963,539.72 -7,963,539.72 188,056.77 -140,509.37 7,823,030.35 98.24% mme Report Surplus(Deficit): -7,963,539.72 -7,963,539.72 188,056.77 -140,509.37 7,823,030.35 98.24% 1/17/2023 3:03:05 PM Page 3 of 4 30 01/24/2023 Item E. Budget Report For Fiscal:2022-2023 Period Ending:12/31/2022 Fund Summary Variance Original Current Period Fiscal Favorable Fund Total Budget Total Budget Activity Activity (Unfavorable) 111-WYLIE ECONOMIC DEVEL COR -7,963,539.72 -7,963,539.72 188,056.77 -140,509.37 7,823,030.35 Report Surplus(Deficit): -7,963,539.72 -7,963,539.72 188,056.77 -140,509.37 7,823,030.35 1/17/2023 3 0'4 0',PM Page 4014 31 01/24/2023 Item E. Wylie Economic Development Corporation Statement of Net Position As of December 31, 2022 Assets Cash and cash equivalents $ 10,966,162.22 Receivables $ 40,000.00 Note 1 Inventories $ 16,616,937.10 Prepaid Items $ - Total Assets $ 27,623,099.32 Deferred Outflows of Resources Pensions $ 75,630.55 Total deferred outflows of resources $ 75,630.55 Liabilities Accounts Payable and other current liabilities $ 8,170.14 Unearned Revenue $ 1,200.00 Note 2 Non current liabilities: Due within one year $ 496,350.97 Note 3 Due in more than one year $ 15,681,473.23 Total Liabilities $ 16,187,194.34 Deferred Inflows of Resources Pensions $ (45,385.41) Total deferred inflows of resources $ (45,385.41) Net Position Net investment in capital assets $ - Unrestricted $ 11,466,150.12 Total Net Position $ 11,466,150.12 Note 1: Includes incentives in the form of forgivable loans for$40,000(LUV-ROS) Note 2: Deposits from rental property Note 3: Liabilities due within one year includes compensated absences of$32,301 32 01/24/2023 Item E. WYLIE E O lc Balance Sheet Account Summary As Of 12/31/2022 Account Name Balance Fund:111-WYLIE ECONOMIC DEVEL CORP Assets 1.2,1m,,10(0)I-10.10 CLAIM ON CASH AND CASH EQUIV. 10,964,162.22 1111000-1.0115 CASH-WEDC-INWOOD 0.00 11.1-100040135 ESCROW 0.00 111-1000-10130 DEPOSITS 2,000.00 1111;•110Q0-1€J198 OTHER-MISC CLEARING 0.00 111-1000-10341 TEXPOOL 0.00 11 1(100.10343 LOGIC 0.00 111-1000-1.0481 INTEREST RECEIVABLE 0.00 ,1,,11-1000-11)5°1,1 ACCTS REC-MISC 0.00 11.1-1000-1:151 i` ACCTS REC-SALES TAX 0.00 111-1000-1.2810 LEASE PAYMENTS RECEIVABLE 0.00 111-1000-12950 LOAN PROCEEDS RECEIVABLE 0.00 1.11 1000 12996 LOAN RECEIVABLE 0.00 1.1.1-1000-12997 ACCTS REC-JTM TECH 0.00 11.14000 12998 ACCTS REC-FORGIVEABLE LOANS 40,000.00 111-1010 141.1.2 INVENTORY-MATERIAL/SUPPLY 0.00 111-100044116 INVENTORY-LAND&BUILDINGS 16,616,937,10 111_1000-14:118 INVENTORY-BAYCO/SANDEN BLVD 0.00 1:11-1000-14310 PREPAID EXPENSES-MISC 0.00 ill 1.000-14410 DEFERRED OUTFLOWS 683,934.00 Total Assets: 28,307,033.32 28,307,033.32 Liability 111-2000-20110 FEDERAL INCOME TAX PAYABLE 0.00 111-2000-2011.1 MEDICARE PAYABLE 0.00 111-2000-20112 CHILD SUPPORT PAYABLE 0.00 111-2000-20113 CREDIT UNION PAYABLE 0.00 1:11-2000-20111 IRS LEVY PAYABLE 0.00 1.11-20011-20115 NATIONWIDE DEFERRED COMP 0.00 111-2Q00-201.16 HEALTH INSUR PAY-EMPLOYEE 5,590.11 111-2 0 0 0-2 0 1 17 TMRS PAYABLE 0.00 111.2000-20118 ROTH IRA PAYABLE 0.00 111-2000-2011.9 WORKERS COMP PAYABLE 0.00 111 2 000-2 012 0 FICA PAYABLE 0.00 111-2000-20121 TEC PAYABLE 0.00 1:11-•2000-20122 STUDENT LOAN LEVY PAYABLE 0.00 111-.2000-20123 ALIMONY PAYABLE 0.00 1:11-2000-201.24 BANKRUPTCY PAYABLE 0.00 1.11-2000-20:125 VALIC DEFERRED COMP 0.00 11.1.-2000-20126 ICMA PAYABLE 0.00 1112000-20127 EMP.LEGAL SERVICES PAYABLE 0.00 111-2000-20130 FLEXIBLE SPENDING ACCOUNT 2,437.44 111-2000-20131 EDWARD JONES DEFERRED COMP 0.00 111 2000-201.32 EMP CARE FLITE 12.00 111-2000-20133 Unemployment Comp Payable 0.01 111.-2000-20151 ACCRUED WAGES PAYABLE 0.00 111-2000-20130 ADDIT EMPLOYEE INSUR PAY 130.58 111 2000-20199 MISC PAYROLL PAYABLE 0,00 111-.2000-20201 AP PENDING 0.00 119 2009)-2021.0 ACCOUNTS PAYABLE 78,912.61 111-.2000-20530 PROPERTY TAXES PAYABLE 0.00 111-2000-20540 NOTES PAYABLE 683,934.00 1112000-20810 DUE TO GENERAL FUND 0.00 11/17/202 3 3:05:25 PM Pdge 1 uY 3 33 01/24/2023 Item E. Balance Sheet As Of 12/31/2022 Account Name Balance 111 2000-222711 DEFERRED INFLOW 0.00 2noo 22275 DEF INFLOW-LEASE PRINCIPAL 0.00 111 2000 22 Z80 DEFERRED INFLOW-LEASE INT 0.00 111 2000 22915 RENTAL DEPOSITS 1,200.00 Total Liability: 772,216.75 Equity 111 300C)34110 FUND BALANCE-RESERVED 0.00 111 3000 34000 FUND BALANCE-UNRESERV/UNDESIG 27,675,325.94 Total Beginning Equity: 27,675,325.94 Total Revenue 443,429.06 Total Expense 583,938.43 Revenues Over/Under Expenses -140,509.37 Total Equity and Current Surplus(Deficit): 27,534,816.57 Total Liabilities,Equity and Current Surplus(Deficit): 28,307,033.32 34 01/24/2023 Item E. Balance Sheet As Of 12/31/2022 Account Name Balance Fund:922-GEN LONG TERM DEBT(WEDC) Assets 922.1000-10312 GOVERNMENT NOTES 0.00 922-1000-1.8110 LOAN-WEDC 0.00 922-1000-181.20 LOAN-BIRMINGHAM 0.00 9 2 2-1000-18 2 1 0 AMOUNT TO BE PROVIDED 0.00 922-1000-18220 BIRMINGHAM LOAN 0.00 922-1000-19050 DEF OUTFLOW TMRS CONTRIBUTIONS 39,535.29 922-1000-190,,5i_, DEF OUTFLOW SDBF CONTRIBUTIONS 3,027.00 922-1000-19075 DEF OUTFLOW-INVESTMENT EXP -37,953.52 922-1000-19100 DEF OUTFLOW-ACT EXP/ASSUMP 71,021.78 922-1000-19125 (GAIN)/LOSS ON ASSUMPTION CHGS -44,574.41 922.1000-10126 DEF INFLOW SDBF CONTRIBUTIONS -811.00 Total Assets: 30,245.14 30,245.14 Liability 922-2.000-20310 COMPENSATED ABSENCES PAYABLE 2,264.95 922-2000-20311 COMP ABSENCES PAYABLE-CURRENT 32,300.82 922-2000-21410 ACCRUED INTEREST PAYABLE 29,863.28 922-2000-28205 WEDC LOANS/CURRENT 434,186.87 92.2--2000-28220 BIRMINGHAM LOAN 0.00 922-2000-2823C) INWOOD LOAN 0.00 922-2000-28232 ANB LOAN/EDGE 0.00 922-2000-28233 ANB LOAN/PEDDICORD WHITE 0.00 922-2000-28734 ANB LOAN/RANDACK HUGHES 0.00 922-2000-28235 ANB LOAN 0.00 922.2000-282 36 ANB CONSTRUCTION LOAN 0.00 922-2000-28237 ANB LOAN/WOODBRIDGE PARKWAY 0.00 9222000-28238 ANB LOAN/BUCHANAN 0.00 922-2000-28239 ANB LOAN/JONES:HOBART PAYOFF 0.00 922-2000-28240 HUGHES LOAN 0.00 92.2-2000-28242 ANB LOAN/HWY 78:5TH ST REDEV 0.00 222-2000-28245 ANB LOAN/DALLAS WHIRLPOOL 0.00 922-2000-282.46 GOVCAP LOAN/KIRBY 7,551,644.87 922-2000--28247 JARRARD LOAN 112,611.20 922-2000-28248 GOVCAP LOAN/SERIES 2022 7,817,937.04 922-2000-28250 CITY OF WYLIE LOAN 0.00 922-2000-28260 PRIME KUTS LOAN 0.00 ,9/2-2000--28270 BOWLAND/ANDERSON LOAN 0.00 922-2000-282.80 CAPITAL ONE CAZAD LOAN 0.00 922-2 00,0-2a 290 HOBART/COMMERCE LOAN 0.00 922-2000-29150 NET PENSION LIABILITY 185,989.17 922-2000-291.51 SDBF LIABILITY 11,026.00 Total Liability: 16,177 824.20 Equity 922--300CI-34„591 FUND BALANCE-UNRESERV/UNDESIG -16,169,102.16 922-3000-3590C) UNRESTRICTED NET POSITION -120,264.00 Total Beginning Equity: -16,289,366.16 Total Revenue 0.00 Total Expense -141,787.10 Revenues Over/Under Expenses 141,787.10 Total Equity and Current Surplus(Deficit): -16,147,579.06 Total Liabilities,Equity and Current Surplus(Deficit): 30,245.14 1/17/2023 3:05:25 P51 Pogo 3 vt 3 35 01/24/2023 Item E. Wylie Economic Development Corporation SALES TAX REPORT December 31, 2022 BUDGETED YEAR DIFF % DIFF MONTH FY 2020 FY 2021 FY 2022 FY 2023 22 vs.23 22 vs.23 DECEMBER $ 226,663.94 $ 235,381.33 $ 263,577.66 $ 338,726.54 $ 75,148.88 28.51% JANUARY $ 218,520.22 $ 262,263.52 $ 326,207.92 FEBRUARY $ 362,129.18 $ 456,571.35 $ 417,896.79 MARCH $ 228,091.34 $ 257,187.91 $ 305,605.50 APRIL $ 203,895.57 $ 221,881.55 $ 265,773.80 MAY $ 289,224.35 $ 400,371.70 $ 401,180.20 JUNE $ 239,340.35 $ 290,586.92 $ 343,371.26 JULY $ 296,954.00 $ 314,559.10 $ 331,432.86 AUGUST $ 325,104.34 $ 390,790.76 $ 429,696.16 SEPTEMBER $ 259,257.89 $ 307,681.15 $ 337,512.61 OCTOBER $ 249,357.02 $ 326,382.38 $ 346,236.36 NOVEMBER $ 384,953.89 $ 411,813.32 $ 392,790.84 Sub-Total $ 3,283,492.09 $ 3,875,470.98 $ 4,161,281.96 $ 338,726.54 $ 75,148.88 28.51% Total $ 3,283,492.09 $ 3,875,470.98 $ 4,161,281.96 $ 338,726.54 $ 75,148.88 28.51% E•C Sales Tax nalysis $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 2022 $200,000 2023 $150,000 $100,000 $50,000 $0 .„8 soec„ cz3, Aes \,'"?› c)e` C, ***Sales Tax collections typically take 2 months to be reflected as Revenue. SIsTx receipts are then accrued back 2 months. Example:December SlsTx Revenue is actually October SIsTx and is therefore the 1st allocation in FY23. 36 01/24/2023 Item E. Wylie Economic Development Corporation Inventory Subledger(Land) December 31,2022 Property Purchase Address Acreage Improvements Cost Basis Sub-totals Date Cooper St. McMasters 7/12/05 709 Cooper 0.4750 $ - n/a $ 202,045.00 Heath 12/28/05 706 Cooper 0.4640 $ 32,005.00 3,625 $ 186,934.22 Perry 9/13/06 707 Cooper 0.4910 $ - n/a $ 200,224.00 Bowland/Anderson 10/9/07 Cooper Dr. 0.3720 $ - n/a $ 106,418.50 Duel Products 9/7/12 704 Cooper Dr. 0.5000 $ - n/a $ 127,452.03 Randack 10/23/12 711-713 Cooper Dr. 1.0890 $ 217,500.00 8,880 $ 400,334.00 Lot 2R3 7/24/14 Cooper Dr. 0.9500 $ - n/a $ 29,056.00 $ 1,252,463.75 Regency Dr. Regency Pk. 6/4/10 25 Steel Road 0.6502 $ - n/a $ 25,170.77 Steel/Hooper 12/29/22 Lot 2R Helmberger Idustrial Park 3.6885 n/a $ 345,441.57 $ 370,612.34 Commerce Dr. Hobart Investments 11/12/13 Commerce 1.6000 $ - n/a $ 156,819.50 Hobart 1/6/14 605 Commerce 1.0650 $ 396,263.00 20,000 $ 386,380.00 Dallas Whirlpools 11/22/16 900-908 Kirby 4.7600 $ 128,925.00 9,000 $ 2,182,080.30 City of Wylie 10/22/21 802 Kirby 4.7900 $ - n/a $ 3,000,000.00 $ 5,725,279.80 Downtown Heath 3/17/14 104 N.Jackson 0.1720 $ - n/a $ 220,034.00 Udoh 2/12/14 109 Marble 0.1700 $ - n/a $ 70,330.00 Peddicord 12/12/14 100 W.Oak St 0.3481 $ 155,984.00 4,444 $ 486,032.00 City Lot 12/12/14 108/110 Jackson 0.3479 $ - n/a Jones(K&M) 9/3/15 106 N.Birmingham 0.2100 $ 42,314.00 4,125 $ 190,596.10 Pawn Shop/All The Rave 1/7/22 104 S.Ballard 0.0860 $ 5,420.00 1,885 $475,441.20 FBC Lot 6/15/16 111 N.Ballard St 0.2000 $ - n/a $ 150,964.00 FFA Village 1/7/18 102.N.Birmingham 0.1700 $ - n/a $ 99,804.00 Boyd 7/28/21 103 S.Ballard 0.0760 $ 49,231.00 Demo $ 328,792.20 Keefer 10/27/21 401 N Keefer Dr 0.4890 $ 83,084.00 Demo $ 237,951.39 Parupia 8/19/22 200 W Brown 0.0770 $ - Demo $ 159,325.57 UP Lot 9/30/22 UP Lot 0.4760 $ - 832 $ 82,126.92 $ 2,501,397.38 Alanis Dr. White Property 12/12/14 Alanis 6.6328 $ - n/a $ 420,336.00 $ 420,336.00 South Ballard Birmingham Trust 6/3/15 505-607 S.Ballard 1.1190 $ - n/a $ 409,390.00 Murphy 3/7/19 701 S.Ballard 0.2000 $ 115,724.00 1,312 $ 172,487.04 Marlow 3/31/22 305 S.Ballard 0.1865 1,008 $ 185,457.52 Braley 7/22/19 503 S.Ballard 0.2558 $ - n/a $ 177,397.96 $ 759,275.00 Squire Dr. Gallagher 3/14/18 Squire-lot 2-4 2.6720 $ 100,404.00 6,000 $ 573,844.35 $ 573,844.35 Brown&78 Turner 12/5/18 504 E.Brown 1.0220 $ - n/a $ 308,179.81 Wallace 12/18/18 502 E.Brown 0.1870 $ 24,637.00 Demo $ 204,775.00 Karan 12/28/18 300 E.Brown 2.3866 $ - n/a $ 1,250,391.20 O'Donald 1/7/19 410 E.Brown 0.1870 $ 64,421.00 Demo $ 177,043.75 Weatherford 2/12/19 303 Marble 2.1740 $ - n/a $ 757,488.00 Brothers JV 2/26/19 306&308 N.2nd Street 0.3770 $ - n/a $ 145,923.04 Pulliam 2/27/19 300 N.2nd Street 0.2570 $ 122,764.00 1,364 $ 218,472.20 Swayze 4/18/19 208 N.2nd Street 0.2580 $ - n/a $ 187,501.40 Swayze 5/9/19 204 N.2nd Street 0.2580 $ - n/a $ 187,658.20 Kreymer 10/9/19 302 N.2nd Street 0.1290 $ 72,609.00 1,386 $ 187,941.76 KCS 11/22/19 Hwy 78 Frontage 2.5363 $ - n/a $ 674,110.20 City of Wylie 5/14/20 ROW Purchase/Alleys 1.8800 $ - n/a $ 81,713.00 Collin County 5/7/20 SWC Hwy 78&Marble 0.3590 $ - n/a $ 75,964.20 Collin County 5/7/20 414 S.2nd Street(NWC Hwy 78& 1.2260 $ - n/a $ 296,152.20 TxDOT 2/21/21 SWC Hwy 78&Brown 0.2209 $ - n/a $ 78,540.00 $ 4,831,853.96 Total 48.2406 $ 1,611,285.00 63,861 $ 16,620,520.10 $ 16,064,450.24 37 01/24/2023 Item E. Wylie Economic Development Corporation PERFORMANCE AGREEMENT REPORT December 31,2022 TOTAL BUDGETED YEAR REMAINING PREVIOUS FY TOTAL INCENTIVE AFTER PAYMENTS INCENTIVE PERFORMANCE AGREEMENTS FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 CURRENT FY CSD WOODBRIDGE $ 1,100,000.00 $ 154,548.56 $ 29,377.51 $ - $ - $ - $ 29,377.51 $ 916,073.93 $ 1,100,000.00 A BALLERS ELITE-THE LAB,LLC $ 20,000.00 $ 20,000.00 $ - $ - $ - $ - $ - $ - $ 20,000.00 DW WYLIE $ 15,000.00 $ 15,000.00 $ - $ - $ - $ - $ - $ - $ 15,000.00 CBC PROPERTY HOLDINGS $ 50,000.00 $ 13,140.34 $ - $ - $ - $ - $ - $ 25,000.00 $ 38,140.34 SAVANNAH WOODBRIDGE $ 90,000.00 $ 45,000.00 $ - $ - $ - $ - $ - $ 45,000.00 $ 90,000.00 CARDINAL STRATEGIES $ 106,800.00 $ 16,933.00 $ 24,934.00 $ - $ - $ - $ 24,934.00 $ 49,433.00 $ 91,300.00 AVANTI,LLC $ 120,000.00 $ 30,000.00 $ 30,000.00 $ - $ - $ - $ 30,000.00 $ 60,000.00 $ 120,000.00 GDA INVESTMENTS $ 30,500.00 $ 20000.00 $ 10,500.00 $ - $ - $ - $ 10500.00 $ - $ 30,500.00 LUV-ROS $ 10,000.00 $ 5,000.00 $ 5,000.00 $ - $ - $ - $ 5.000 00 $ - $ 10,000.00 B AMERICAN ENTITLEMENTS I $ 33,000.00 $ 33,000.00 --- $ - $ - $ - $ - $ - $ 33,000.00 C NORTH DALLAS WYLIE LAND $ 120,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 $ - $ - $ 40,000.00 $ 60,000.00 $ 120,000.00 AXL $ 65,000.00 $ 46,500.00 $ 9,250.00 $ 9,250.00 $ - $ - $ 18,500.00 $ - $ 65,000.00 FUEL CITY $ 500,000.00 $ - $ 500,000.00 $ - $ - $ - $ 500,000.00 $ - $ 500,000.00 AMERICAN ENTITLEMENTS II $ 35,000.00 $ - $ 35,000.00 $ - $ - $ - $ 35,010.00 $ - $ 35,000.00 $ 2,295,300.00 $ 419,121.90 $ 664,061.51 $ 29,250.00 $ - $ - $ 693,311.51 $ 1,155,506.93 $ 2,232,940.34 Deferred Out Flow $ 683,934.00 A. SLSTX Reimbursement Qrtly Pmnts B. Performance Agreeement($10,000)and Forgiveable Land Grant($60,000 forgiven over 3 years).$20,000/year in 2021,2022,&2023. C. Performance Agreeement Requirements were met.Removed the future obligation from FY23. 38 01/24/2023 Item F. Wylie City Council CITY O AGENDA REPORT Department: Finance Account Code: Prepared By: Melissa Brown Subject Consider, and act upon, approving the revised Financial Management Policies. Recommendation I otion to approve the Item as presented. Discussion The purpose of the Financial Management Policies is to formalize financial guidelines for the City. They will assist City staff in planning and directing the City's financial affairs and provide a document that codifies these policies in one place. The overriding goal of the Financial Management Policies is to enable the City to achieve a long-term stable and positive financial condition while conducting its operations consistent with the Council-Manager form of government established in. the City Charter. The basis for the City's Financial Management Policies includes integrity, prudent stewardship, planning, accountability, and full disclosure. The Financial Management Policies were previously approved on September 27,2022. The revision request is in Section VII -Expenditure Control,Letter E-Purchasing. Staff is requesting to increase authorization levels for appropriations previously approved by City Council in the Operating Budget. These levels are as follows: • Division Staff up to $1,000 (previously $500) • Directors up to $3,000 (previously $1,000) • Purchasing up to $10,000 (previously $3,000) • Finance Director up to $15,000 (previously $7,500) • City Manager over $15,000 with any purchases exceeding $50,000 approved by City Council (previously over $7,500) Staff recommends approval of the Financial Management Policies. Approval of the new authorization levels will streamline the purchasing process and make purchasing items that are appropriated in the budget simpler.The goal is to improve functioning of departments and to move approved projects through the process in a more timely manner. 39 01/24/2023 Item F. FY 2022-23 Financial Management Policies Revised: January 24,2023 40 01/24/2023 Item F. I. PURPOSE STATEMENT The overriding goal of the Financial Management Policies is to enable the city to achieve a long-term stable and positive financial condition while conducting its operations consistent with the Council-Manager form of government established in the City Charter.The watchwords of the city's financial management include integrity, prudent stewardship, planning, accountability, and full disclosure. The purpose of the Financial Management Policies is to provide guidelines for the financial management staff in planning and directing the city's day-to-day financial affairs and in developing recommendations to the City Manager. The scope of the policies spans accounting, auditing,financial reporting, internal controls, operating and capital budgeting, revenue management,cash management,expenditure control and debt management. II. ACCOUNTING,AUDITING,AND FINANCIAL REPORTING A.ACCOUNTING-The city's Assistant Finance Director is responsible for establishing the chart of accounts, and for properly recording financial transactions. B. FUNDS - Self-balancing groups of accounts are used to account for city financial transactions in accordance with generally accepted accounting principles. Each fund is created for a specific purpose except for the General Fund,which is used to account for all transactions not accounted for in other funds. Funds are created and fund names are changed by City Council. C. EXTERNAL AUDITING -The city will be audited annually by outside independent auditors.The auditors must be a CPA firm of national reputation, and must demonstrate that they have the breadth and depth of staff to conduct the city's audit in accordance with generally accepted auditing standards, generally accepted government auditing standards, and contractual requirements. The auditors' report on the city's financial statements including any federal grant single audits will be completed within 120 days of the city's fiscal year end, and the auditors' management letter will be presented to the city staff within 150 days after the city's fiscal year end. An interim management letter will be issued prior to this date if any materially significant internal control weaknesses are discovered. The city staff and auditors will jointly review the management letter with the City Council within 60 days of its receipt by the staff. D. EXTERNAL AUDITORS RESPONSIBLE TO CITY COUNCIL—The external auditors are accountable to the City Council and will have access to direct communication with the City Council if the city staff is unresponsive to auditor recommendations or if the auditors consider such communication necessary to fulfill their legal and professional responsibilities. E. EXTERNAL AUDITOR ROTATION -The city will not require external auditor rotation, but will circulate requests for proposal for audit services periodically, normally at five-year intervals or less. An award of services to the same audit firm is allowable but will require rotation of the audit partner and audit manager after five consecutive years. The rest period for the audit partner will be a minimum of two years and the rest period for the audit manager will be a minimum of five years. Revised: January 24,2023 41 01/24/2023 Item F. F. EXTERNAL FINANCIAL REPORTING-The city will prepare and publish an Annual Comprehensive Financial Report (ACFR). The ACFR will be prepared in accordance with generally accepted accounting principles, and will be presented annually to the Government Finance Officers Association (GFOA) for evaluation and possibly awarding of the Certification of Achievement for Excellence in Financial Reporting. The ACFR will be published and presented to the City Council within 120 days after the end of the fiscal year. City staffing limitations may preclude such timely reporting. In such a case,the Finance Director will inform the City Manager and the City Manager will inform the City Council of the delay and the reasons therefore. III. INTERNAL CONTROLS A. WRITTEN PROCEDURES-The Finance Director is responsible for developing city-wide written guidelines on accounting, cash handling, and other financial matters which will be approved by the City Manager. The Finance Department will assist department managers as needed in tailoring these guidelines into detailed written procedures to fit each department's requirements. B. INTERNAL AUDIT - The Finance Department may conduct reviews of the departments to determine if the departments are following the written guidelines as they apply to the departments. Finance will also review the written guidelines on accounting, cash handling and other financial matters. Based on these reviews Finance will recommend internal control improvements as needed. C.DEPARTMENT MANAGERS RESPONSIBLE-Each department manager is responsible to the City Manager to ensure that good internal controls are followed throughout his or her department, that all guidelines on accounting and internal controls are implemented,and that all independent and internal auditor internal control recommendations are addressed. IV. OPERATING BUDGET A. PREPARATION - The city's "operating budget" is the city's annual financial operating plan. It consists of governmental and proprietary funds, including the general obligation Debt Service Fund, but excluding capital projects funds. The budget is prepared by the City Manager with the assistance of the Finance Department and cooperation of all city departments.The City Manager transmits the document to the City Council. The budget should be presented to the City Council no later than August 5 or a date to be determined by the City Council, and should be enacted by the City Council prior to fiscal year end. The operating budget will be submitted to the GFOA annually for evaluation and possible awarding of the Award for Distinguished Budget Presentation. B. BALANCED BUDGETS-An Operating budget will be balanced, with current revenues, exclusive of beginning resources,greater than or equal to current expenditures/expenses. C. PLANNING - The budget process will be coordinated so as to identify major policy issues for City Council. Revised: January 24,2023 42 01/24/2023 Item F. D. BUDGETED DRAWDOWN OF RESERVES - One-time purchases may be requested by the City Manager through the budget process, subject to the Fund Balance Policy in section IX of the Policies. E. REPORTING - Periodic financial reports will be prepared to enable the department managers to manage their budgets and to enable the Budget Manager to monitor and control the budget as approved by the City Council. Monthly financial reports will be presented to the City Council. Such reports will include current year revenue and expenditures. F. CONTROL-Operating Expenditure Control is addressed in Section VII of the Policies. G. PERFORMANCE MEASURES AND PRODUCTIVITY INDICATORS — Where appropriate, performance measures and productivity indicators will be used as guidelines and reviewed for efficiency and effectiveness.This information will be included in the annual budgeting process. V. CAPITAL BUDGET AND PROGRAM A. PREPARATION -The city's capital budget will include all capital projects funds and all capital resources.The budget will be prepared annually on a fiscal year basis and adopted by ordinance. The capital budget will be prepared by the City Manager with assistance from the Finance Department and involvement of all required city departments. B.CONTROL-All capital project expenditures must be appropriated in the capital budget. Finance must certify the availability of resources so an appropriation can be made before a capital project contract is presented by the City Manager to the City Council for approval. C. PROGRAM PLANNING - The capital budget will include capital improvements programs for future years. The planning time frame should normally be five years. The replacement and maintenance for capital items should also be projected for the next five years at a minimum. Future maintenance and operations will be fully costed, so that these costs can be considered in the operating budget. D. ALTERNATE RESOURCES - Where applicable, assessments, impact fees, or other user-based fees should be used to fund capital projects which have a primary benefit to certain property owners. E. DEBT FINANCING - Recognizing that debt is usually a more expensive financing method, alternative financing sources will be explored before debt is issued.When debt is issued, it will be used to acquire major assets with expected lives that equal or exceed the average life of the debt issue. The exceptions to this requirement are the traditional costs of marketing and issuing the debt,capitalized labor for design and construction of capital projects,and small component parts which are attached to major equipment purchases. F.STREET MAINTENANCE-The city recognizes that deferred street maintenance increases future capital costs by an estimated 5 to 10 times. Therefore, the City's goal is to allocate a portion of the General Fund budget each year to maintain the quality of streets. The amount will be Revised: January 24,2023 43 01/24/2023 Item F. established annually so that repairs will be made amounting to a designated percentage of the value of the streets. G.WATER/WASTEWATER MAIN REHABILITATION AND REPLACEMENT-The city recognizes that deferred water/wastewater main rehabilitation and replacement increases future costs due to loss of potable water from water mains and inflow and infiltration into wastewater mains. Therefore, to ensure that the rehabilitation and replacement program is adequately funded, the City's goal will be to dedicate an amount equal to at least 1 % of the undepreciated value of infrastructure annually to provide for a water and wastewater main repair and replacement program. H. REPORTING - Periodic financial reports will be prepared to enable the department managers to manage their capital budgets and to enable the finance department to monitor the capital budget as authorized by the City Manager. VI. REVENUE MANAGEMENT A. SIMPLICITY - The city will strive to keep the revenue system simple which will result in a decrease of compliance costs for the taxpayer or service recipient and a corresponding decrease in avoidance to pay.The city will avoid nuisance taxes,fees, or charges as revenue sources. B. CERTAINTY - An understanding of the revenue source increases the reliability of the revenue system.The city will try to understand its revenue sources,and enact consistent collection policies so that assurances can be provided that the revenue base will materialize according to budgets and plans. C.EQUITY-The city will strive to maintain equity in the revenue system structure.That is,the city will seek to minimize or eliminate all forms of subsidization between entities, funds, services, utilities and customers.However,it is recognized that public policy decisions may lead to subsidies in certain circumstances, e.g., senior citizen property tax exemptions or partial property tax abatement. D.ADMINISTRATION-The benefits of revenue will exceed the cost of producing the revenue.The cost of collection will be reviewed annually for cost effectiveness as a part of the indirect cost, and cost of services analysis. E.REVENUE ADEQUACY-The city will require that there be a balance in the revenue system.That is,the revenue base will have the characteristics of fairness and neutrality as it applies to cost of service, willingness to pay, and ability to pay. F. COST/BENEFIT OF ABATEMENT-The city will use due caution in the analysis of any tax,fee, or water and wastewater incentives that are used to encourage development.A cost/benefit (fiscal impact) analysis will be performed as a part of such analysis and presented to the appropriate entity considering using such incentive. Revised: January 24,2023 44 01/24/2023 Item F. G. DIVERSIFICATION AND STABILITY - In order to protect the government from fluctuations in revenue source due to fluctuations in the economy,and variations in weather(in the case of water and wastewater), a diversified revenue system will be maintained. H. NON-RECURRING REVENUES - One-time revenues will not be used for ongoing operations. Non-recurring revenues will be used only for non-recurring expenditures. Care will be taken not to use these revenues for budget balancing purposes. I. PROPERTY TAX REVENUES - Property shall be assessed at 100% of the fair market value as appraised by the Collin County Central Appraisal District. Reappraisal and reassessment shall be done regularly as required by State law. A 100% collection rate will serve as a minimum for tax collection. All delinquent taxes will be aggressively pursued, with delinquents greater than 150 days being turned over to the City Attorney or a private attorney, and a penalty assessed to compensate the attorney as allowed by State law, and in accordance with the attorney's contract. Annual performance criteria will be developed for the attorney regarding the collection of delinquent taxes. J. PARKS AND RECREATION 4B SALES TAX REVENUE - Parks and Recreation 4B sales tax revenue shall supplement but not supplant the funding for the Parks and Recreation System in the General Fund and the Recreation Center Department of the Parks and Recreation 4B Sales Tax Revenue Fund. K. USER-BASED FEES - For services associated with a user fee or charge, the direct and indirect costs of that service will be offset by a fee where possible.There will be an annual review of fees and charges to ensure that fees provide adequate coverage of costs and services. User charges may be classed as "full cost recovery," "partial costs recovery," and "minimal cost recovery," based upon City Council policy. L. IMPACT FEES - Impact fees will be imposed for water, wastewater, and transportation in accordance with the requirements of State law. The staff working with the particular impact fee shall prepare a semi-annual report on the capital improvement plans and fees. Additionally, the impact fees will be re-evaluated at least every three years as required by law. M. GENERAL AND ADMINISTRATIVE CHARGES - A method will be maintained whereby the General Fund can impose a charge to the enterprise funds for general and administrative services (indirect costs) performed on the enterprise funds' behalf.The calculation will be based upon the percentage of personnel time and other resources attributed to the Enterprise Fund by each department of the General Fund. The details will be documented and said information will be maintained in the Finance Department for review. N. UTILITY RATES-The city will review utility rates annually and, if necessary, adopt new rates to generate revenues required to fully cover operating expenditures, meet the legal restrictions of all applicable bond covenants, and provide for an adequate level of working capital needs. This policy does not preclude drawing down cash balances to finance current operations. However, it is best that any extra cash balance be used instead to finance capital projects. Revised: January 24,2023 45 01/24/2023 Item F. O. PARKS AND RECREATION 4B FUND BALANCE-The Parks and Recreation 4B Fund Balance shall be established to protect property tax payers from excessive volatility caused by the fluctuations in the Parks and Recreation 4B sales tax revenue. It will be funded with revenues of the Parks and Recreation 4B Fund. The city's goal will be to maintain the Fund Balance at 25% of the annual Parks and Recreation 4B sales tax budgeted revenue. P. UTILITY FUND BALANCE-The Utility Fund shall maintain a Fund Balance to protect ratepayers from excessive utility rate volatility. It may not be used for any other purpose. It will be funded with surplus revenues of the Utility Fund. The City's goal will be to maintain the Utility Fund Balance at 90 days of budgeted expenditures. Q. INTEREST INCOME - Interest earned from investment of available monies, whether pooled or not, will be distributed to the funds in accordance with the operating and capital budgets which, wherever possible, will be in accordance with the equity balance of the fund from which monies were provided to be invested. R. REVENUE MONITORING - Revenues actually received will be regularly compared to budgeted revenues and variances will be investigated. This process will be summarized in the appropriate budget report. VII. EXPENDITURE CONTROL A. APPROPRIATIONS - The level of budgetary control is the department level budget in the General Fund,and the fund level in all other funds.When budget adjustments(i.e.,amendments), among departments and/or funds are necessary these must be approved by the City Council. Budget appropriation amendments at lower levels of control shall be made in accordance with the applicable administrative procedures. B. CONTINGENCY ACCOUNT EXPENDITURES - The General Fund Contingency Account will be budgeted and approved by the City Council as a part of the budget process. The City Manager must approve all contingency account expenditures. C. VACANCY FUNDS—Savings from position vacancies will be reviewed as a part of the midyear budget amendments and savings will be either allocated to other accounts by Council approval or become unbudgeted funds to add to the ending fund balance. D. CENTRAL CONTROL - Significant vacancy (salary) and capital budgetary savings in any department will be centrally controlled by the City Manager. E. PURCHASING -All purchases shall be made in accordance with the city's purchasing policies as defined in the Purchasing Manual.Authorization levels for appropriations previously approved by the City Council in the Operating Budget are as follows: Division Staff up to $1,000, for Directors up to $3,000, for Purchasing up to $10,000.00, for Finance Director up to $15,000.00. The City Manager can authorize expenditures over$15,000.00 with any purchases exceeding $50,000.00 to be approved by the City Council. Revised: January 24,2023 46 01/24/2023 Item F. F. PROFESSIONAL SERVICES - Professional services contracts will be coordinated through the purchasing agent in compliance with statutory regulations. G. CONTRACT AUTHORITY— By statute, contracts greater than or equal to $50,000.00 must be approved by Council, after which either the Mayor or the City Manager may then sign any necessary documents. By ordinance,contracts less than$50,000.00 may be authorized and signed by the City Manager, provided there is an appropriation for such contract.Signature authority for contracts equal to or less than$10,000 has been delegated by the City Manager to the Purchasing Manager. H. PROMPT PAYMENT-All invoices will be paid within 30 days of receipt in accordance with the prompt payment requirements of State law. Procedures will be used to take advantage of all purchase discounts where considered cost effective. However, payments will also be reasonably delayed in order to maximize the city's investable cash, where such delay does not violate the agreed upon terms. I. INFORMATION TECHNOLOGY - Certain information technology acquisitions will be centrally funded from the Information Technology Division. Acquisitions from this division may include all related professional services costs for researching and/or implementing an information technology project.Annual funding for replacements and for new technology will be budgeted in the IS department with the exception of the Utility Fund. Additional funding above the base amount may be provided for major projects with available one-time sources including debt proceeds and/or grants. J. PREPAID EXPENDITURES—Final determination of expenditure coding in the General Ledger will be assigned to the Finance Department. Expenditure coding must remain consistent. Purchased items must fit the description of the line item they are being charged to. Amounts of$10,000 or more paid in advance or across budget years will be coded as prepaid items and charged to the next budget year. Department Directors are responsible for budgeting and paying these items accordingly. VIII. ASSET MANAGEMENT A. INVESTMENTS-The city's investment practices will be conducted in accordance with the City Council approved Investment Policies. B. CASH MANAGEMENT-The city's cash flow will be managed to maximize the cash available to invest. C. INVESTMENT PERFORMANCE-A monthly report on investment performance will be provided by the Finance Director to the City Manager for presentation to the City Council. D. FIXED ASSETS AND INVENTORY - These assets will be reasonably safeguarded, properly accounted for, and prudently insured. IX. FINANCIAL CONDITION AND RESERVES Revised: January 24,2023 47 01/24/2023 Item F. A. NO OPERATING DEFICITS-Current expenditures will be paid with current revenues. Deferrals, short-term loans, or one-time sources will be avoided as budget balancing techniques. Reserves will be used only for emergencies on non-recurring expenditures, except when balances can be reduced because their levels exceed guideline minimums. B. INTERFUND LOANS - Non-routine interfund loans shall be made only in emergencies where other temporary sources of working capital are not available and with the approval of the City Council.At the time an interfund loan is considered, a plan to repay it prior to fiscal year end shall also be considered. A fund will only lend money that it will not need to spend for the next 365 days. A loan may be made from a fund only if the fund has ending resources in excess of the minimum requirement for the fund. Loans will not be made from the city's enterprise funds (Water/Wastewater, etc.), except for projects related to the purpose of the fund.Total interfund loans outstanding from a fund shall not exceed 15%of the target fund balance for the fund. If any interfund loan is to be repaid from the proceeds of a future debt issue, a proper reimbursement resolution will be approved at the time the loan is authorized. C. FUND BALANCE POLICY 1. Committed Fund Balance — The City Council is the City's highest level of decision- making authority and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Council at the City's Council meeting. The resolution must either be approved or rescinded, as applicable, prior to the last day of the fiscal year for which the commitment is made. The amount subject to the constraint may be determined in the subsequent period. 2. Assigned Fund Balance — The City Council has authorized the City Manager as the official authorized to assign fund balance to a specific purpose as approved by this fund balance policy. 3. Order of Expenditure of Funds — When multiple categories of fund balance are available for expenditure, the City will start with the most restricted category and spend those funds first before moving down to the next category with available funds. 4. Minimum General Fund Unassigned Fund Balance—It is the goal of the City to achieve and maintain an unassigned fund balance in the general fund equal to 25% of expenditures. The City considers a balance of less than 20% to be cause for concern, barring unusual or deliberate circumstances. If unassigned fund balance falls below the goal or has a deficiency,the City will appropriate funds in future budgets to replenish the fund balance based on a time table deemed adequate by the City Council. 5. Minimum Utility Fund Balance — The Utility Fund shall maintain a Fund Balance to protect ratepayers from excessive utility rate volatility. It will be funded with surplus revenues of the Utility Fund. The City's goal will be to maintain the Utility Fund ending Fund Balance at 90 days of budgeted expenditures. 6. Minimum Parks and Recreation 4B Fund Balance—The Parks and Recreation 4B Fund Balance shall be established to protect property tax payers from excessive volatility Revised: January 24,2023 48 01/24/2023 Item F. caused by the fluctuations in the Parks and Recreation 4B sales tax revenue. It will be funded with revenues of the Parks and Recreation 4B Fund. The City's goal will be to maintain the Parks and Recreation 4B Fund ending Fund Balance at 25% of budgeted 4B sales tax revenues. D.RISK MANAGEMENT PROGRAM-The city will aggressively pursue every opportunity to provide for the public's and city employees' safety and to manage its risks. E. ENTERPRISE FUND SELF-SUFFICIENCY-The city's enterprise funds' resources will be sufficient to fund operating and capital expenditures.The enterprise funds will pay(where applicable)their fair share of general and administrative expenses, in-lieu-of-property taxes and/or franchise fees. If an enterprise fund is temporarily unable to pay all expenses,then the City Council may waive general and administrative expenses, in-lieu-of-property taxes and/or franchise fees until the fund is able to pay them.The City Council may pay out-of-pocket expenses that a fund is temporarily unable to pay with interfund loans,to be repaid at a future date. X. DEBT MANAGEMENT Debt Management is addressed in a separate Debt Management Policy. XI. STAFFING AND TRAINING A. ADEQUATE STAFFING - Staffing levels will be adequate for the fiscal functions of the city to function effectively. Overtime shall be used only to address temporary or seasonal demands that require excessive hours. Workload scheduling alternatives will be explored before adding staff. B.TRAINING-The city will support the continuing education efforts of all financial staff including the investment in time and materials for maintaining a current perspective concerning financial issues. Staff will be held accountable for communicating, teaching, and sharing with other staff members all information and training materials acquired from seminars,conferences,and related education efforts. XII. GRANTS FINANCIAL MANAGEMENT A. GRANT SOLICITATION - The City Manager will be informed about available grants by the departments and will have final approval over which grants are applied for.The grants should be cost beneficial and meet the city's objectives. B. RESPONSIBILITY- Departments will oversee the day to day operations of grant programs, will monitor performance and compliance,and will also keep the Finance Department and Purchasing informed of significant grant-related plans and activities. Departments will also report re- estimated annual revenues and expenses to the Finance Department as needed. Finance Department staff members will serve as liaisons with grantor financial management personnel, will prepare invoices, and will keep the books of account for all grants. All goods and services obtained through grants are subject to City purchasing policies and must be coordinated with the purchasing agent. Revised: January 24,2023 49 01/24/2023 Item F. XIII. ANNUAL REVIEW AND REPORTING A.These Policies will be reviewed administratively by the City Manager at least annually, and will be presented to the City Council by the Finance Department for confirmation of any significant changes. B.The Finance Director will report annually to the City Manager on compliance with these policies. Revised: January 24,2023 50 01/24/2023 Item G. Wylie City Council CITY OF AGENDA REPORT Department: Purchasing Account Code: 100-5154 Prepared By: Glenna Hayes Subject Consider, and act upon, the approval of the 2023 Procurement Manual. Recommendation I otion to approve Item as presented. Discussion The purpose of the Procurement Manual is to provide the City with the requisite parameters for purchasing goods and services. The policies are based on Texas statutory provisions as found in the Texas Government Code,Texas Local Government Code, Texas Insurance Code,Texas Labor Code,the City Charter,and support the Finance Policies. Updates: Chapter 4—Authority Limits/Paragraph C (Requisition Authority Limits) Changed from: $0.01 -$500.00 Division $500.01 -$1,000.00 Director $1,000.01 - $7,500.00 Purchasing&Finance Director $7,500.01 + City Manager(including all over budget) Changed to: Up to $1,000.00 Division $1,000.01 - $3,000.00 Director $3,000.01 - $10,000.00 Purchasing $10,000.01 -$15,000.00 Finance Director $15,000.01 + City Manager(including all over budget) Staff recommends the approval of the 2023 Procurement Manual as amended. The policies are intended to: • Simplify and clarify the laws governing purchasing by the City • Permit the continued development of purchasing policies and practices • Provide consistency in the purchasing practices of the City • Increase public confidence in public purchasing • Ensure the fair and equitable treatment of all persons who participate in the purchasing process • Provide increased economy and efficiency in purchasing activities by avoiding unnecessary, unwarranted, and duplicative purchases. 51 01/24/2023 Item G. CITY OF fit WYLIE PROCUREMENT MANUAL 2023 OUR MISSION To be responsible stewards of the public trust, to strive for excellence in public service and to enhance the quality of life for all. OUR PLEDGE Accept and fulfill responsibilities with integrity, professionalism and accountability • Acknowledge and value the contributions of all Build on the foundation of our predecessors • Provide consistent, cost-effective and quality service to our community • Continuously reach for the highest level of service♦ Communicate effectively with our citizens and employees • Care about the needs of others • Treat everyone with courtesy, respect and understanding ♦ Promote responsible and diversified economic growth. OUR PROCUREMENT GOALS To promote fiscal responsibility by obtaining the right product, for the right purpose, at the right time, for the right price ♦ To actively seek fair competition in the procurement process* Ethical compliance with Federal, State and local laws♦ To treat suppliers fairly and equitably • Increase public confidence in public purchasing ADOPTED BY WYLIE CITY COUNCIL:9/22/2020 Approved by Wylie City Council: 9/27/2022; 1/24/2023 52 01/24/2023 Item G. PROCUREMENT POLICY TABLE OF CONTENTS Page CHAPTER 1 PURPOSE 5 CHAPTER 2 ETHICS 6 Section A Employee Standard of Conduct Section B Employee Conflict or Substantial Interest Section C Vendor Conduct Section D Violations and Remedies Section E References CHAPTER 3 ORGANIZATIONAL RESPONSIBILITY,AUTHORITY AND ENFORCEMENT 9 Section A City Council Section B City Manager Section C Finance Director Section D Purchasing Manager Section E Directors Section F Department Staff Section G Administration of Budget CHAPTER 4 AUTHORITY LEVELS 13 Section A General Procurement Authority Section B Signature Authority Section C Requisition Approval Authority CHAPTER 5 PAYMENTS, INSURANCE, PUBLIC RECORDS 14 Section A Payments Vendors/Contractors/Payment of Subcontractors and Allowable Section B Miscellaneous Expenses Section C Criminal Penalties Section D Insurance Requirements Section E Public Records PROCUREMENT THRESHOLDS: SUPPLIES, EQUIPMENT AND NON- CHAPTER 6 PROFESSIONAL SERVICES 16 Section A Non-contract Purchases Section B Contract Purchases Section C Requisition Documentation Purchases from Cooperative Agreement or Interlocal Purchasing Section D Agreements Section E Vendor On-Line Terms/Conditions ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 2 53 01/24/2023 Item G. PROCUREMENT POLICY CHAPTER 7 METHODS OF PROCUREMENT 19 Section A Methods of Procurement Section B Exemptions Section C Competitive Sealed Bids Section D Non-Responsive/Non-Responsible Section E Identical Bids Section F Department Director or Designee Responsibilities Section G Purchasing Responsibilities Section H City Council Agenda Items CHAPTER 8 PUBLIC WORKS/CONSTRUCTION PROJECTS 22 Section A Bid Type Section B Prevailing Wage Rates Section C Bonding Requirements Section D Insurance and Indemnification Requirements CHAPTER 9 PROFESSIONAL SERVICES 23 Section A Definition of Professional Services Section B Procurement of Architectural, Engineering or Land Surveying Services Section C Pre-Qualified Various Professional and Engineering Firms Section D All Other Professional and Personnel Services CHAPTER 10 GRANTS, REBATES and SUBSIDIES 25 CHAPTER 11 CHANGE ORDERS 26 Section A Threshold for Change Orders Section B General Process Section C Approval for Change Orders Section D Contingency Fee Policy CHAPTER 12 CONSTRUCTION CONTRACTS CONTINGENCY FEE POLICY 27 Section A Policy Purpose Section B Bid Aware Procedure Section C Change Orders Section D Invoice Payment Procedure CHAPTER 13 SOLE SOURCE PURCHASES 28 Section A Single Source and Brand Name Clarification Section B Written Justification Section C Notice of Intent to Award a Sole Source Procurement CHAPTER 14 EMERGENCY PURCHASES 29 Section A Emergency Disaster Declaration Section B Emergency Purchase Process (not processed through the City's EOC) Section C Non-Emergency ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 3 54 01/24/2023 Item G. PROCUREMENT POLICY CHAPTER 15 COOPERATIVE PURCHASES 30 CHAPTER 16 PROCUREMENT CARD PROGRAMS 31 Section A General Policies Section B Violations and Remedies CHAPTER 17 GENERAL ITEMS 34 Section A Tax Exempt Certificates Section B Various Other Procurement Programs Section C Petty Cash Purchases Section D Fiscal Year Procurement Cut Off CHAPTER 18 BONDS, INSURANCE AND INDEMNIFICATION 35 Section A Bond Policy Section B Types of Bonds Section C Insurance and Indemnification Policy Section D Insuring City Assets CHAPTER 19 CONTRACTS 37 Section A Purchase Orders Section B Contracts greater than $40,000 Section C Annual/Term Contracts CHAPTER 20 CONTRACT MANAGEMENT&VENDOR PERFORMANCE 38 Section A General Responsibilities Section B Non-Performing Vendors CHAPTER 21 ASSET AND SURPLUS DISPOSAL 39 Section A Transfer of Surplus Goods within the City Section B Disposal of Goods, Salvage or Surplus Property CHAPTER 22 REQUISITIONS& PURCHASE ORDERS 40 Section A Access to Incode Section B Requisition Process Section C Purchase Orders Section D Deletion of Purchase Orders CHAPTER 23 RECEIPT OF GOODS&SERVICES 23 Section A Inspecting Goods or Services Section B Partial Deliveries Section C Defective or Damaged Merchandise FORM PROCUREMENT MANUAL—ACKNOWLEDGMENT OF RECEIPT 43 ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 4 55 01/24/2023 Item G. PROCUREMENT POLICY CHAPTER 1®Purpose The Purchasing Department will serve as the central procurement office of the City and will determine which method of procurement provides the best value for the City, adopt operational procedures consistent with sound business practices and state law which govern the procurement and management of all materials, services and construction to be procured by the City, and manage disposal of materials. The purpose of the Procurement Policy is to provide the City with the requisite parameters for purchasing goods and services. The policy is based on Texas statutory provisions as found in the Texas Government Code,Texas Local Government Code,Texas Insurance Code, and Texas Labor Code, as amended. These policies are intended to: • Simplify and clarify the laws governing purchasing by the City; • Permit the continued development of purchasing policies and practices; • Provide consistency in the purchasing practices of the City; • Increase public confidence in public purchasing; • Ensure the fair and equitable treatment of all persons who participate in the purchasing process; • Provide increased economy and efficiency in purchasing activities by avoiding unnecessary, unwarranted, and duplicative purchases Policy: It is the policy of the City to conduct procurement functions efficiently, effectively, and in full compliance with all federal and state laws, City Charter, and City administration policy and procedures. The City Council's authority to contract for all goods and services and make all sales is delegated to the City Manager as set forth in this manual and to those employees to whom the City Manager delegates that responsibility. The Purchasing Manager has been delegated by the City Manager to contract for the City in accordance with this manual. Department Directors may choose to delegate procurement responsibilities only within their full-time staff. All such personnel are required to complete mandatory training provided by the Purchasing Department and access to the City's financial system will be granted once that training is completed. Unauthorized personnel who attempt to contract in the name of the City, or personnel making unauthorized purchases outside of the scope of this manual, may be subject to disciplinary action, legal action, and personal financial liability. If a person fails to comply with the competitive bidding or competitive proposal procedures required by law, that person may be convicted of a Class B misdemeanor. This includes a situation in which a person knowingly makes or authorizes separate, sequential, or component purchases in an attempt to avoid competitive bidding requirements. General Enforcement: It shall be the responsibility of the Finance Director and Purchasing Manager to enforce all purchasing procedures. Texas Local Government Code § 252.062, 252.063 and 271.029 provide criminal penalties for officers and employees who knowingly violate state statutes. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 5 56 01/24/2023 Item G. PROCUREMENT POLICY CHAPTER 2—Ethics A special responsibility is imposed on all City officers, employees, and agents (hereafter referred to as "employees") entrusted with the allocation of City funds. In government procurement, employees are held to the highest degree of integrity required to secure best economic results, and required to comply with the procurement process. It is critical that all City employees involved in procurement and procurement-related functions remain independent, free of obligation or suspicion, and completely fair and impartial. Credibility and public confidence are vital. A shadow of doubt can be as harmful as the conduct itself and employees should make every effort to: • Avoid the intent and/or appearance of unethical or compromising practice in relationships, actions, and communications. If a situation is perceived as real, then it is in fact real in its consequences. • Avoid business relationships with personal friends and relatives. • Avoid holding business meetings with suppliers outside the office. If such a meeting is necessary, carefully choose the location so there will be no perception by others in the business community or your peers of impropriety. A. Employee Standards of Conduct City Employees will: o Promote positive vendor relations through courtesy and impartiality in all phases of the procurement process. o Actively strive to comply with City policies, federal and state laws regarding purchases from HUB (Historically Underutilized Businesses) o Handle confidential or proprietary information belonging to the City, fellow employees or vendors with care and proper consideration of ethical and legal ramifications, and governmental regulations. o Never use information gained confidentially in the performance of duties for profit. • Prohibited Conduct: City employees shall not participate in the negotiation, selection, discussion, award or administration of a contract or procurement supported by public funds if: o That individual has a substantial interest in a person or entity ( Chapter 171 of the Texas Local Government Code)that is the subject of the contract or procurement. o A conflict of interest exists. A conflict arises when a City employee, officer or agent, or any relative or potential relative thereof(family members), a partner or a person or an organization that employs or may employ in the near future any of these individuals, has a financial or other interest(directly or indirectly) in the sale to the City of any materials, supplies or services, including any proposed or existing contract, purchase, work, sale, or service to,for,with, or by the City. • Personal and Non-Profit Agency Use Prohibited: The purchase of goods,equipment or services for personal use by a City officer, employee,agent, or family members, or made by same on behalf of a non-profit agency, from City business accounts and/or contracts is prohibited. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 6 57 01/24/2023 Item G. PROCUREMENT T OLICY o Employees that are involved in contract negotiations should not purchase merchandise or services for personal use with a vendor that is currently working, seeks to work, or has worked for the City. o Employees shall NOT use the City of Wylie tax exemption forms for personal or non- profit use, nor set up accounts with a City tax exemption form in their personal name. o A City officer, employee, agent, or family member may purchase merchandise or services from a vendor doing business with the City provided that the price at which the item is purchased is the same price charged to a designated segment of the public regardless of place of employment, or all officers and employees of the City. o If a City officer, employee,agent, or family member acquires merchandise or services for the employee's personal use from a vendor doing business with the City, such merchandise or services may not be delivered to the employee or another City employee unless the acquisition is paid directly to the vendor by the employee. No personal invoices are to be mailed to an employee (or another City employee for or on behalf of the employee) at the employee's (or other employee's) place of work. Neither the vendor nor the employee may process the purchase under the City's tax exempt status. Employee is responsible for payment of applicable sales tax. • Gratuities(Gift and Entertainment): City employees shall not: o Solicit and/or accept benefits or gifts of any kind from vendors, actual or potential. o Provide special favors or privileges to anyone, either as payment or under any other circumstances. o Be in violation of any City ordinances or HR Policies regarding ethics/gifts. B. Employee Conflict or Substantial Interest In the event of a conflict of interest or substantial interest, as set forth above, the affected employee must adhere to the following procedures: • Sign a declaration of possible Conflict of Interest form; • Abstain from participating in the procurement process, which includes, but is not limited to, discussions, lobbying, rating, scoring, recommending, explaining or assisting in the design or approval of the procurement process, selection of vendors, or the award of the contract: o Where the officer, employee, agent or family member directly represents an organization or may receive an economic benefit; o Where the officer, employee, agent or family member may directly receive an economic benefit; o Where the officer, employee, agent or family member is in direct competition with a proposal or bid which would provide a direct financial benefit; Any deviation from this policy must be submitted in writing by the Director, providing departmental procedures detailing how the conflict will be managed, and approved by the Purchasing Manager and Finance Director. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 7 58 01/24/2023 Item G. PROCUREMENT POLICY C.Vendor Conduct Vendors,their officers, employees, agents, partners or sub-contractors, seeking to do business with the City or contracted to do business with the City must: • At all times be in compliance with all federal, state and local laws; • Conduct themselves ethically and refrain from any exchange of favors, money, gifts or other forms of favor with any City officers, agents, employees, employee family members or potential family members; • Maintain an accurate "Conflict of Interest Questionnaire" (Texas Ethics Commission) with the City Secretary's office; • Vendors, their officers, employees, agents, partners or sub-contractors, who are directly involved with the writing of any type of specification created for the purposes of a fair and open procurement process, may not submit an offer or response. Violation of this policy may result in the Vendor, their officers, employees, agents, partners or sub- contractors being barred from working with the City, or in the voiding of any contracts. Violations of state or federal law shall be referred to the proper authority having jurisdiction over same. D.Violations and Remedies Violations of policy may constitute misconduct, subjecting the violator to any and all penalties prescribed by federal and/or state law,the City's HR Manual, City Ordinance or City Charter; up to and including termination. Penalties, sanctions or other disciplinary actions,to the extent permitted by federal, state or local law, rules or regulations, shall be imposed for violations of the code of conduct/conflict of interest standards, by a City officer, employee or agent, or by persons, contractors or their agents,when the procurement involves state or federal programs and/or funds. Violations of state or federal law shall be referred to the proper authority having jurisdiction over same. E. Disclosure of Certain Relationships: City employees and officials must become familiar with the requirements in Texas Local Government Code Chapter 176, Disclosure of Certain Relationships with Local Government Officers; and Texas Local Government Code Chapter 171, Regulation of Conflicts of Interest of Officers of Municipalities; and the penalties provided therein. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 8 59 01/24/2023 Item G. PROCUREMENT T OLICY CHAPTER 3®Organizational Responsibility,Authority and Enforcement This chapter covers the responsibility delegated to various staff, their respective approval authority, and enforcement. A. City Council The City Council shall be responsible for: • Establishing the rules and regulations for the purchase of all goods and services by means of this manual. • Authorizing all purchases at or exceeding the competitive requirements as stated by law. • Authorizing all written contracts and agreements at or exceeding the competitive requirements as stated by law. • Considering and adopting rules for electronic receipt of bids/proposals. • By means of this manual, delegate approval authority to the City Manager for approval of alternative bidding methods to be used for the construction of a facility,as described by Chapter 2269 (Government Code) after determining it to be a better value than competitive bidding. Authority includes: • Approval of budgeted items at or greater than the competitive requirements. • Approval of budget amendments as required. • Approval of change orders at or greater than the competitive requirements. • Approval of emergency expenditures at or greater than the competitive requirements. B. City Manager The City Manager is responsible for: • Ensuring compliance by all departments with the policies and procedures outlined in this manual, and promoting and protecting governmental purchasing integrity. • By means of this manual delegate to the Purchasing Manager: o The authority to procure goods and services, authority to approve alternative bidding methods to be used for the construction of a facility, as described by chapter 2269 (government code) after determining it to be a better value than competitive bidding; and o Authority to manage disposal of materials and/or assets no longer needed, and administer the purchasing rules and regulations as established by all federal law, state law,and city charter and ordinance provisions. Authority includes: • Approval of purchases less than the competitive requirements limit. • Approval of non-budgeted items. • Execution of all contracts, agreements, change orders or necessary documents as approved and authorized by City Council (see Signature Authority). • Execution of all contracts, agreements, change orders or necessary documents where the total amount(s) are less than the current competitive requirement. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 9 60 01/24/2023 Item G. PROCUREMENT T OLICY C. Finance Director The Finance Director and/or designee provides and oversees compliance for financial components with regard to procurement activities. Authority includes: • Ensuring the proper expenditures of funds, both budgeted and unbudgeted. • Verifying the availability of funds for City Council recommendations and awards before being placed on the City Council Agenda. • Approval of all alternative financial arrangements (leases, grants, bank notes, etc.). • Approval and authorization of access for City employees to the City's financial systems • Approval of cardholder financial levels for the City procurement card program (p-card). • Assignment of project codes for procurement tracking. • Approval of the disposal of assets via donations. D. Purchasing Manager The Purchasing Manager performs or oversees compliance with all procurement requirements for goods and services as prescribed in this manual. The Purchasing Manager ensures all procurement activities are conducted with the highest level of ethical standards in a fair, open, inclusive and transparent environment, and provides suppliers a fair opportunity to compete for City business and protects public funds. The Purchasing Manager is responsible for: • Developing and administering the City's purchasing policy and procedures. • Providing guidance and assistance for all City employees regarding the purchasing process. • Managing the City's purchasing programs to include compliance with all statutory and internal policies. • Procuring goods and services budgeted at $40,000 and above in collaboration with the requesting Department; o Developing final specification documents and methods to ensure competition. o Managing the bid and evaluation processes o Facilitating recommendations for award (administrative and Council) • Determining which method of procurement provides best value for the City; including o Authority to approve alternative bidding methods to be used for the construction of a facility, as described by Chapter 2269 (Government Code) after determining it to be a better value than competitive bidding. • Preparing all documentation required for purchases requiring approval by the City Council, City Manager or appropriate staff. • Monitoring the terms and conditions of purchases. • Reviewing requisition documents and approving requisitions of$1,000 or greater. • Managing the disposal of materials and/or assets no longer needed. • Updating all procurement forms,templates, policies, and procedures. • Providing training to City employees on requisitions, credit cards and various procurement related topics. • Administering contracts and agreements for goods and services. • Maintaining purchasing files and records. • Consulting with the City Attorney for review of all procurement related issues. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 10 61 01/24/2023 Item G. PROCUREMENT T POLICY Authority includes: • Determining which method of procurement provides the best value for the City and making recommendations to the City Manager and/or the City Council, as appropriate. • Rejecting any and all bids, in concurrence with requesting department, when in the best interest of the City, and making recommendation to the City Manager and/or City Council, as appropriate. (Items over$50,000 require a formal rejection by City Council.) • Program Administrator for the City Procurement Card Program, and other City-wide procurement programs(Amazon, Office Depot, Home Depot, etc.) • Executing all Interlocal or Cooperative Purchasing Agreements as have been approved by the City Council and/or the City Manager, as appropriate. • Purchasing budgeted goods or services from cooperative or other inter-local agreements as have been approved by the City Council, City Manager, and/or other appropriate staff. • Signature Authority to execute contracts and change orders up to $10,000 • Approving requisitions of$3,000 and greater(as approved by appropriate staff). E. Directors Directors are responsible for: • Ensuring procurement policy compliance within their department and safe guarding against misappropriation of City funds. • Ensuring adequate funds are appropriated prior to the procurement process. • Submitting budget transfer requests if funds are insufficient, prior to entering a requisition or committing to the vendor. Expenditures not included in the budget must have approval of the City Manager before quotes are obtained and purchase order commitment. Evidence of the approval shall be in the form of a memo or email issued by the City Manager. • Planning the department's annual purchase requirements to allow sufficient time to complete the appropriate procurement process(quotes,bids or proposals). • Determining whether a contract exists or would be beneficial to the City for the item(s) or service(s). • Ensuring Historically Underutilized Business (HUB) participation in accordance with the provisions of Texas Local Government Code Chapter 252. • Managing and reviewing department P-Card use for compliance to policies. • Delegating authority as appropriate to prepare requisitions and specifications. • Delegation of authority to access the City's Financial systems: o Providing names of all departmental individuals authorized to enter or approve requisitions and purchase orders and ensuring the approval process is maintained within the electronic system, and o Providing any changes in delegation of such authority Authority includes: • Authorization of requisitions within the current limits set by the Finance Department. • Purchases made in accordance with the City Procurement Card Program (p-card). • Authorization of Emergency Purchases(as defined by statute). F. Department Staff Staff members are responsible for: ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 11 62 01/24/2023 Item G. PROCUREMENT POLICY • Obtaining proper training through Purchasing on procurement laws, basic procedures, insurance and shipping directions, how to issue requisitions,write specifications, participation in the City's various procurement programs, and procurement ethics. • Managing the P-Card reconciliation in accordance with this manual and current Finance procedures. • Developing the technical portion of bid specifications. • Providing"Tier 1" contract administration for various contracts in the areas of: o Overall vendor performance o On-time delivery of goods or services o Accuracy of invoicing • Ensuring that current vendor insurance certificates which meet the City's requirements are current and on file with the department before any work is started. • Providing complete documentation to Purchasing of any vendor's failure to perform as contracted. • Maintaining any associated procurement records per retention schedule. Authority includes: • Input and authorization of requisitions within the current limits set by the Finance Department. • Purchases that are made through the issuance of purchase orders in accordance with these Policies. • Purchases that are made in accordance with the City Procurement Card Program (p-card). G. Administration of Budget: All employees are responsible for the proper administration of the City's budget within the limits delegated to their positions. • Compliance: o No verbal or other obligations shall be incurred or payment made except in accordance with the adopted annual budget and these policies, and unless the City Manager or designee first certifies that there is a sufficient unencumbered balance and that sufficient funds are or will be available to cover the claim or meet the obligation when it becomes due and payable. Any authorization of payment or incurring of verbal or other obligations in violation will be void and any payment so made illegal. o Such action shall be the cause for removal of any employee who knowingly authorized or made such payment or incurred such obligations, and he shall also be liable to the City for any amount so paid. However,this prohibition shall not be construed to prevent the making or authorizing of payments or making of contracts for capital improvements to be financed wholly or partly by the issuance of bonds, time warrants, certificates of indebtedness, or certificates of obligation, or to prevent the making of any contract or lease providing for payments beyond the end of the fiscal year, provided that such action is made or approved by ordinance (Article XII,Section 10). • Variances: o Any variance in quantities or expenditure amount, beyond what was approved in the annual budget will require written approval (email) from either the City Manager or an Assistant City Manager. Such approval will be forwarded to the Purchasing Department prior to approval of requisitions. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 12 63 01/24/2023 Item G. PROCUREMENT T POLICY CHAPTER 4—Authority Levels A. General Procurement Authority: • Procurement authority may be delegated by Department Directors to department staff as deemed necessary. • Purchases may be made by either: o use of a City issued purchase order; or o use of a City issued procurement card (P-card) • Except where authorized by law, City employees do not have the authority to verbally place orders or verbally bind the City to debt. (See Emergency Purchases) B. Signature Authority: * Signature authority resides solely with: • Mayor or Mayor Pro-Tern: (City Charter/Article III/Section 5) o The mayor is authorized to sign any and all documents, agreements and contracts related to expenditures. o In the absence of the mayor, the mayor pro-tem shall have all the rights conferred upon the mayor. • City Manager (Ordinance 2008-38) o Signature authority for any and all documents, agreements and contracts related to expenditures approved in the annual operating budget up to$50,000. o Signature for any and all documents, agreements and contracts related to expenditures approved by a lawfully held City Council meeting. • Purchasing Manager(Adoption of these policies) o Signature authority for any and all documents, agreements and contracts related to expenditures approved in the annual operating budget up to$10,000. C. Requisition Approval Authority: The following approval levels shall be utilized within the City's financial system in all procurement related matters. • Temporary Delegation: If an approver will be out of the office, their approval authority may be temporarily assigned to another employee. Delegations may only be given "upward" within their management chain to another manager with existing approval authority. For audit purposes, all approvals made as a delegate must be noted in the "internal notes" box of the requisition. ("Approving on behalf of First Name Last Name") ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 13 64 01/24/2023 Item G. PROCUREMENT PC)LICY FINANCIAL SOFTWARE- REQUISITION APPROVAL LEVELS Amount Requisition Approval Authorities $1-$1000 DIVISION STAFF $1000+<$3000 DIRECTOR $3,000-$10,000 PURCHASING $10,001-$15,000 FINANCE $15,000+ CITY MGR.; ASSIST.CITY MGR *including all over-budget ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 14 65 01/24/2023 Item G. PROCUREMENT POLICY CHAPTER 5®PAY E TS, INSURANCE& PUBLIC RECORDS A. Payments,Texas: (Government Code,§2251.021 through 2251.030) A payment by a governmental entity under a contract executed on or after September 1, 1987,is overdue on the 31st day after the later of: o the date the governmental entity receives the goods under the contract; or o the date the performance of the service under the contract is completed; or o the date the governmental entity receives a correct invoice for the goods or service. • All invoices will be reviewed by the Department for receipt of goods/services, accuracy and compliance to the issued purchase order,and processed promptly. • If goods or services are incomplete City staff must document any issues/shortages and notify the vendor in writing. All deliveries should be verified upon receipt. • Payments are not made until goods and services are received and accepted. o Pre-payments for services such as professional speakers,artists,and/or performers may be authorized by the Purchasing department where the provisions are clearly defined in a mutually executed agreement. • Departments are encouraged to take advantage of prompt or early payment discounts. Notice of prompt payments should be highlighted on the invoice and clearly marked on the front of the purchase order submitted to Accounting for payment. • The approved purchase order and invoice will be forwarded to Accounting for processing. • It is the Finance Department's responsibility to monitor the prompt payment of invoices. Goods,Services and Invoice Discrepancies: Departments will ensure that all goods and services are correct and received on time. Should there be a discrepancy in the invoice it is the responsibility of the department to: • Notify the vendor immediately of any discrepancies and ask for a resolution. If the vendor is notified by phone,the department should follow-up with a written communication summarizing the phone call. • If the vendor is correct,the original payment deadline still applies. • If the discrepancy is acknowledged by the vendor: o the department must obtain either a credit memo or a corrected invoice from the vendor. o the payment period starts when the new invoice is received. • If the department is unsuccessful in resolving the issues, please notify the Purchasing Department at the earliest date possible for assistance. B. Vendors/Contractors/Payment of Subcontractors and Allowable Miscellaneous Expenses Vendor and contractors must pay subcontractor(s) or supplier(s) who provide goods/services for which payment is made within ten (10) days after receipt of payment from the City. See Chapter 17 Bonds, Insurance and Indemnification. Vendors, contractors, and/or subcontractors are eligible for reimbursement for travel expenses when covered by written contract. Reimbursements for travel will be in accordance with current IRS guidelines, per diem rates as published by the U.S.General Services Administration (GSA)for the City's zip code and County,and miscellaneous expenses are published by Purchasing. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 15 66 01/24/2023 Item G. PROCUREMENT POLICY C. Criminal penalties,Texas Local Government Code,§252.062 • A municipal officer or employee commits an offense if the officer or employee intentionally or knowingly makes or authorizes separate, sequential, or component purchases to avoid the competitive bidding requirements of Section 252.021. An offense under this subsection is a Class B misdemeanor. • A municipal officer or employee commits an offense if the officer or employee intentionally or knowingly violates Section 252.021,other than by conduct described by Subsection (a). An offense under this subsection is a Class B misdemeanor. • A municipal officer or employee commits an offense if the officer or employee intentionally or knowingly violates this chapter, other than by conduct described in Subsection (a) or (b). An offense under this subsection is a Class C misdemeanor. Removal/Ineligibility,Texas Local Government Code,§252.063 • The final conviction of a municipal officer or employee for an offense under Section 252.062 (a) or (b)results in the immediate removal from office or employment of that person. • For four years after that date of the final conviction,the removed officer or employee is ineligible: o to be a candidate for or to be appointed or elected to a public office in this state; o to be employed by the municipality with which the person served when the offense occurred;and o to receive any compensation through a contract with that municipality. D. Insurance requirements: (Texas Labor Code,§406.096) All contractors and subcontractors shall have insurance coverage(including worker's compensation as required). Proof of coverage must be provided prior to any work beginning. Certificates must be submitted to Purchasing. Minimum Required Insurance: Workers Compensation, General Liability, and Auto Liability. Other types of insurance may be required depending on the type of work or service requested. A "Public Works" Building or construction is defined as: • erecting or preparing to erect a structure, including a building, bridge, roadway, public utility facility, or related appurtenance; or • remodeling, extending, repairing, or demolishing a structure; or • otherwise, improving real property or an appurtenance to real property through similar activities. E. Public records: Vendors or a member of the public may request a copy of a Bid Tabulation that is compiled when bids are opened in accordance with Chapter 552 of the Texas Government Code. The Purchasing Department is responsible to publicly post such documents. The City will not release copies of bid submissions or bid evaluations until after the contract has been awarded in accordance with §552.104 of the Texas Government Code. Once awarded, all requests submitted under the Freedom of Information Act will be processed in accordance with all applicable ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 16 67 0112412023 Item6 PROCUREMENT POLICY laws. Department staff shall not release procurement or contact documentation (in part or in whole), and will refer any inquiries to the Purchasing Department. ISSUED:OCTOueR2O2O nev/sso: JAwuAn,ucus 01/24/2023 Item G. PROCUREMENT POLICY CHAPTER 6—PROCURE ENTT ES L S SUPPLIES, EQUIPMENT AND NON-PROFESSIONAL SERVICES The Purchasing Department will select the procurement method based upon amounts approved in the annual operating budget or as amended during the year. (Exceptions: Chapter 12 — Emergency Purchases) NOTE: It is unlawful for any City employee to split purchases to circumvent the competitive requirements. Split purchases are defined as: • Component Purchases: purchases of the component parts of an item that in normal purchasing practices would be purchased in one purchase. • Separate Purchases: Purchases made separately of items that in normal purchasing practices would be purchased in one purchase. • Sequential Purchases: Purchases made over a period of time, of items that in normal purchasing practices would be purchases in one purchase. A. Non-Contract Purchases of Supplies, Equipment or Non-Professional Services: Where no City, interlocal or cooperative contract exists. * All purchase orders must be issued to the vendor prior to the ordering, start of, or receipt of goods or services. • Purchases Less Than$3000 A onetime or cumulative purchase of supplies, equipment or non-professional services may be made with either a City issued purchasing card or by a purchase order: o Competitive quotes are recommended, but not required o Departments are responsible for securing the required insurance certificates from vendors performing work on City property. Work should not be started until a purchase order has been issued and sent to the vendor,and a copy of the insurance verified. • Purchases Between $3000 and$39,999 o A onetime purchase or cumulative purchase for supplies, equipment or non- professional services requires a minimum of three (3) written quotes to ensure competition. The quotes will include a search for HUB vendors (Historically Underutilized Businesses) located in Collin County as required in Section 252.0215 of the Texas Local Government Code). If no HUB vendors exist for the supplies,the department will obtain a minimum of three (3) quotes. o Departments are responsible for securing the required insurance certificates from vendors performing work on City property. Work should not be started until a purchase order has been issued and sent to the vendor,and a copy of the insurance verified. • Purchases of$40,000 and above o A onetime purchase or cumulative purchase for supplies, equipment or non- professional services will be processed by the Purchasing Department in conjunction with the department, to determine the most advantageous procurement process and compliance with applicable federal, state and local laws. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 18 69 01/24/2023 Item G. PROCUREMENT POLICY B. Contract Purchases All requests for annual contracts will be processed through the Purchasing Department (regardless of amount; including interlocal purchasing agreements and cooperative agreements. The appropriate threshold and process will be determined by reviewing the current and future requirements of the Department. • Annual Contracts—Cumulative Value of Less Than$3000 o Competitive written quotes are recommended, but not required o Vendor insurance certificates are required when performing work on City property. o Work should not be started until a purchase order has been issued and a copy of the insurance verified. • Annual Contracts—Cumulative Value Between$3,000 and$39,999 o Will be processed by the Purchasing Department in conjunction with the department, to determine the most advantageous procurement process and compliance with applicable federal, state and local laws. o Competitive written quotes will be solicited from an adequate number of vendors to ensure competition, including at least two (2) Historically Underutilized Businesses (HUBs) if available as required in Section 252.0215 of the Texas Local Government Code. o Purchases may be made through interlocal purchasing agreements or from cooperative purchasing organizations. o Vendor insurance certificates are required when performing work on City property. Work should not be started until a purchase order has been issued and a copy of the insurance verified. • Annual Contracts-Cumulative Value of$40,000 or Greater o Unless otherwise specified by law, annual agreements and contracts valued at $40,000 and above shall be awarded by competitive bidding, the use of interlocal purchasing agreements or cooperative purchasing groups, or reverse auction procedures pursuant to current state law, and shall be issued by the Purchasing Department. o Vendor insurance certificates are required when performing work on City property. Work should not be started until a purchase order has been issued and a copy of the insurance verified. • Software Purchases—to support responsible spending of City funds: o Departments are required to obtain quotes in accordance with the thresholds above. o While some software licenses may be proprietary, departments will obtain quotes from companies that provide a product similar in function before making a final decision. C. Requisition Documentation Departments are responsible for compiling and storing all documentation in support of purchases. This information will be linked to the requisition prior to the completion of any financial approvals. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 19 70 01/24/2023 Item G. PROCUREMENT POLICY Note: long term storage of documentation will be migrating to Laserfiche, as licenses and training are available. See Chapter"Requisitions& Purchase Orders". D. Purchases from Cooperative Agreements or Interlocal Purchasing Agreements Texas Government Code, Chapter 791, and the Texas Local Government Code, Chapter 271, authorize the use of cooperative purchasing programs, including interlocal purchasing agreements with other governmental agencies. See Chapter"Cooperative Purchases". E. Vendor On-line Terms/Conditions Vendor on-line terms and conditions, "click to accept", are treated as legal documents requiring an approved signature(per Chapter 4). Department should contact the vendor and request that the quote be sent as an attachment. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 20 71 01/24/2023 Item G. PROCUREMENT POLICY CHAPTER 7—METHODS OF PROCUREMENT A. Methods of Procurement The Purchasing Manager will determine the best method of procurement based on the purchasing threshold and the nature of the goods or services required. The methods of procurement utilized by the City include, but are not limited to: • Competitive Sealed Bids(CSB)or Competitive Sealed Bid performed by a Cooperative agency • Competitive Sealed Proposals (CSP) or Competitive Sealed proposal performed by a Cooperative agency • Request for Proposals(RFP) • Request for Statement of Qualifications(RFQ) • Request for Quotes • Alternative Construction Methods(as defined by Gov.Code 2269) B. Exemptions Exemptions from the methods of procurement listed, are identified in Section 252.022 of the Texas Local Government Code as amended. Requests for exemptions will be submitted in writing to the Purchasing Manager for final approval. C. Competitive Sealed Bids: ($40,000 and above) Purchases may be made by competitive sealed bid or proposal, and shall be referred to the City Council for award as required (See Chapter II, "Laws&Statutes Governing Purchasing"). Note: The requirement for competitive bidding may also be satisfied by purchasing through an existing contract with another government entity or through cooperative purchasing programs,such as the State of Texas, HGAC, U.S. Communities,TCPN,TIPS or TASB Buyboard. D. Non Responsive/Non Responsible: Where the bid specification is written as award to the "Lowest Responsive, Responsible Bidder", the evaluation of all bids will include the following vendor"responsibility" requirements: A. Have adequate financial resources,or the ability to obtain such resources as required; B. Be able to comply with the required or proposed delivery schedule; C. Have satisfactory record of performance; D. Have a satisfactory record of integrity and ethics; E. Otherwise qualified and eligible to receive an award F. Must have a current Certificate of Filing through the Texas Secretary of State Office at the time of bid submission (Texas Business Organization Code; Chapter 9) If the Department evaluation concludes that the lowest bid is not responsive to the bid specifications, the Department will provide a written explanation of the deficiencies. In the event the Department evaluation concludes that a bidder is not "responsible", the Department will provide a written explanation in the award recommendation which will be reviewed and acted upon by the City Council. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 21 72 01/24/2023 Item G. PROCUREMENT POLICY E. Identical Bids: If all factors, conditions, values and expenses relating to the bids are equal, then the award recommendation will be made for the "local" bidder (defined as a business presence within, 1)the City of Wylie; and 2). Collin County). • If two or more of the bidders submitting the lowest bids are residents of the city or district, or from out of state,the award recommendation shall be made by the casting of lots conducted by the Purchasing Manager with at least one witness. F. Department Director or Designee Responsibilities: • The requesting department shall notify the Purchasing Manager. Such notification will provide the following information: o Items or services desired o Budgeted amount o Request for a pre-acquisition meeting with Purchasing o If the item was not approved in the department's budget, written approval by the City Manager must be secured prior to solicitation of bids. • Once the notification has been made and the Procurement process is started, it is the Department's responsibility to: o Cease communications or requests for additional information from vendors who may submit offers in response to the bid. o Treat all City communications, documents and drafts of the bid as"confidential/not for public information". o Refer any and all calls for information to the Purchasing Department • The Department is responsible for establishing the technical portion of the bid specifications. The Purchasing Manager will assist the departments in writing clear, concise and competitive specifications, and will make a final determination as to the specification content. • The Department must be available during the bid process to attend pre-bid meetings, site visits, provide responses to bid questions, attend the bid opening, and participate on any required evaluation teams. • The Department will make a written award recommendation based upon the evaluation method stated in the bid specifications. The Department shall provide additional explanation for: o Reasons as to why the item is over-budget. o Reasons as to why the low bidder is not recommended for the award. G. Purchasing Responsibilities: • Determining the most appropriate bid distribution method. • Finalizing all bid specification documents, including dates and meetings. • Responsibility for scheduling all bid openings and for setting the time and date thereof. Bid opening dates will be scheduled to allow for proper review and analysis of all pertinent information prior to the request for placement on the Council agenda. • Placing and verifying of required public advertisements. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 22 73 01/24/2023 Item G. PROCUREMENT POLICY • Receiving of sealed bids through either physical submission or on-line submission (as allowed by law) • Oversight of all bid openings (as required by law). • All bids, with the exception of some construction bids, shall be tabulated by the Purchasing Manager with the assistance of the requesting department. Bids for construction may be tabulated by the Purchasing Manager, City Engineer or the Engineer of Record. Upon review of the submitted bids, a final bid tabulation will be certified by the Purchasing Department and posted for public information. • All original bid documents and related material must be on file in the Purchasing Department prior to award being made. H. City Council Agenda Items: All procurement related agenda items will be processed by the Purchasing Department (unless specifically authorized by the City Manager). This includes purchasing interlocal agreements, procurement awards, change orders, resolutions and/or ratifications, and other documents as required by statute. • The Purchasing Department will review the submitted documents and ensure that all information has been received and properly tabulated and generate the agenda paperwork. • The Department Director will review and approve the agenda item prepared by Purchasing. • Once approved,the Purchasing Department will submit all the necessary documents to the City's Secretary's office and request that the item be placed on the next available City Council Meeting Agenda. • A Department representative will be present at the Council meeting to address any issues regarding the vendor selection, pricing, or technical specifications. • The Purchasing Manager will be present at the Council meeting to address any issues regarding the procurement process utilized. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 23 74 01/24/2023 Item G. PROCUREMENT T POLICY CHAPTER ®PUBLIC ORKS/CONSTRUCTION PROJECTS Public Works projects are those projects that require the construction,repair,or renovation of a structure, building, street, highway, bridge, park, water and wastewater distribution facility, airport runway or taxiway, drainage project, or other improvement or addition to real property. A. Bid Type: Several bid processes are defined in Texas Government Code Chapter 2269. The Purchasing Manager will work in cooperation with the Department to determine which method will provide the best value for the City. B. Prevailing Wage Rates: Texas Government Code Chapter 2258 mandates the any Public Work contract awarded by the City include the requirement to pay prevailing wage rates. The statute requires the payment of a prevailing wage rate for laborers and mechanics and applies to both contractors and subcontractors. Wages for workers on construction projects shall not be paid less than the schedule of general prevailing rates of per diem wages as mandated. The prevailing wage rate or a link to the wage rates with the date shall be included in public works projects. Rates may be accessed at: http://www.wdol.gov/dba.aspx. C. Bonding Requirements: Bonds shall be in accordance with Texas Government Code Chapter 2253. • The bond must be executed by a corporate surety in accordance with the policies of and on forms approved City form. • The corporate surety must be licensed by the State of Texas to issue surety bonds and appear on the U.S.Treasury List of acceptable sureties. • A Power of Attorney must be included. • Bonding shall be verified by the Purchasing Manager prior to the start of any project. D. Insurance and Indemnification Requirements: • The minimum insurance required will be specified by the Purchasing Department. • For construction-related projects, all contractors and sub-contractors, including those delivering equipment or materials or performing a service shall provide workers' compensation for all employees. General contractors are responsible for ensuring that sub-contractors carry the same or higher insurance amounts as those required. • All contractors shall provide proof of coverage which meets the requirements published by the Purchasing Department. Contractors shall post required signs at job site(s) informing all workers of their right to workers' compensation coverage.Texas Labor Code §406.096 • Workers Compensation coverage is required by Texas Labor Code Texas Labor Code 406 for all Public Works contracts. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 24 75 01/24/2023 Item G. PROCUREMENT POLICY CHAPTER 9®PROFESSIONAL SERVICES The following policies are designed to assist the City's staff in the selection of individuals or firms to perform professional services. The desire is to establish fairness and consistency in the selection process while obtaining the best value (quality services at a reasonable price) for the City in accordance with applicable legal requirements. A. Definition of Professional Services: Professional services generally refer to those services performed by an individual or group of individuals where education, degrees, certification, license, and/or registration are required for qualification to perform the service. The term "professional services" includes labor and skill that is predominantly mental or intellectual, rather than physical or manual in nature. (See Texas Attorney General Opinion No. JM-940, at p. 3 (1988)). Certain professions are specifically named in the Professional Services Procurement Act (ACT), Texas Government Code Chapter 2254, Subchapter A. This includes services within the scope of the practice, as defined by state law(and amended), of: 1. Accounting 2. Architecture 3. Landscape Architecture 4. Land Surveying 5. Medicine 6. Optometry 7. Professional Engineering 8. Real Estate Appraising 9. Professional Nursing 10. Interior Design Services If a department is not sure if a service is a "professional service," the department should contact the Purchasing Manager before securing such services. B. Procurement of Architectural, Engineering, or Land Surveying Services: When procuring architectural, engineering or land surveying services, the City shall use a two-step selection process (see Texas Government Code § 2254.004). General Procedure: • First, the City shall select, through the RFQ process, the most highly qualified provider of those services on the basis of demonstrated competence and qualifications; and • Second, attempt to negotiate with that provider a contract at a fair and reasonable price. Negotiations will be facilitated by Purchasing as lead for a team of stakeholders. • If the City is unable to negotiate a satisfactory contract with the most highly qualified provider of architectural, engineering or land surveying services: o First,the City shall formally end negotiations with that provider; ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 25 76 01/24/2023 Item G. PROCUREMENT POLICY o Second, select the next most highly qualified provider; o Third, attempt to negotiate a contract with that provider at a fair and reasonable price. The City must continue this process until a contract is entered into. • A purchase order must be issued upon award of contract. C. Pre-Qualified Various Professional and Engineering Firms: The Purchasing Department maintains a list of pre-qualified professional and engineering firms. Departments are encouraged to: • Contact the Purchasing Department for guidelines, assistance and appropriate forms. • Review the list of firms for the appropriate category,and rank the firms from most qualified to least for the specific project. • Request a proposal from the firm most qualified for the project,and enter into negotiations. Note that firms must utilize the City's proposal form under this process. • If the Department is unable to complete a successful negotiation that firm is notified in writing that they are permanently set aside. The Department may repeat the process with the next most qualified pre-qualified firm. • All projects and resulting contracts which meet or exceed the competitive bid limit will require approval and award by the City Council (see Chapter 7). • If the Department does not make a final selection from the list of pre-qualified firms, a request for a new RFQ/RFP will be submitted to the Purchasing Department. • A signed contract and purchase order is required before work can begin. D. All Other Professional and Personal Service Agreements: The Department will contact the Purchasing Department to determine the most advantageous method. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 26 77 01/24/2023 Item G. PROCUREMENT POLICY CHAPTER 1 GRANTS, REBATES and SI iES Grants, rebates, and subsidies may be available to off-set the City's purchase expense or to provide other forms of assistance. Departments applying for grants, rebates or subsidies must notify the Finance and Purchasing Department prior to submission of any required paperwork. Finance Responsibilities: • Determining the source of the funds. Various sources may have different audit requirements • Determining the appropriate accounting codes to record/receive revenues. Purchasing Department Responsibilities: • Review the documents for purchasing and disposal requirements • May be restriction on sole source or brand name purchases • EDGAR (Education Department General Administrative Regulations) requirements Department is the Grant Administrator • Reporting requirements • Asset tracking • Repurposing or disposal requirements ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 27 78 01/24/2023 Item G. PROCUREMENT T OLICY CHAPTER 11—C E ORDERS A change order is the written documentation and approval process that must be performed when changes (increases or decreases) in the scope of a project are proposed after the performance of a contract has begun. Such changes may include a significant change in the quantity of work to be performed,the cost of work to be performed, or of the materials, equipment, or supplies to be furnished. A change order is usually written fora construction contract but may be necessary in other types of contracts. A. Threshold for Change Orders: A "threshold" is defined as a financial limit on the amount of expenditures which can be authorized by the City Manager on a construction project before requiring City Council approval. See Texas Local Government Code Chapters 252 and 271. • Cumulative Change Orders Greater than $50,000— If the change order is greater than $50,000 it must be approved by the City Council. • Cumulative Change Orders Less than$50,000—If the change order is less than$50,000 it may be approved by the City Manager or designee. B. General Process: • All change orders and or contract modification will be processed by the Purchasing Department and must be submitted in writing for execution by all parties. • Change orders shall not exceed 25% of the original contract amount, or decrease the original contract price by more than 25%, without consent of the contractor (except for exempt purchases as defined). • The scope of work addressed by the contract change cannot be started prior to either City Council approval or execution of the written change;with the exception of contracts complying with the "Construction Contracts Contingency Fee Policy"). • Purchase orders will be updated by the Purchasing Department. C. Approval for Change Orders: If a change order is greater than $50,000 and is extremely time sensitive and qualifies as an emergency,the City Manager may approve such a change order prior to City Council approval; however, such change order still must be processed through the Purchasing Department as soon as possible for City Council approval as a ratification. Emergency conditions are defined in Chapter 12. D. Contingency Fee Policy: The City Council may establish a contingency fund for a construction project at the time of award of a bid to be used during the course of a project. A contingency fund may be established as recommended by staff and processed by the Purchasing Department in the form of a City Council agenda item at an amount not to exceed 25% of the original bid price. SEE CHAPTER 11 — CONSTRUCTION CONTRACTS CONTINGENCY FEE POLICY. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 28 79 01/24/2023 Item G. PROCUREMENT POLICY CHAPTER 12—CONSTRUCTION CONTRACTS CONTINGENCY FEE POLICY This Purchasing Policy applies to all public works and construction bids awarded (as required by law) by the City of Wylie. A. Policy Purpose: To facilitate the timely completion of changes in plans or specifications after the performance of the contract is begun, or if it is necessary to decrease or increase the quantity of work performed or of materials, equipment or supplies to be furnished. The City may choose to include a portion (by percentage) of the maximum 25% increase ("Contingency Fee") of the original bid price in the award of the contract. B. Bid Award Procedure: • The Department director will evaluate the submitted bids, and make an award recommendation to the Purchasing Department. The award recommendation will include the name of the contractor, the portion of the work awarded, and the amount bid for the portion of work identified in the bid specification. • Based on the complexity of the scope of work, the Department director may elect to include a portion (by percentage) of the maximum 25% increase allowable by law. The dollar amount of the "Contingency Fee" will be listed separately in the memo, and included in the total award. • The Purchasing department will determine if the award of the bid requires City of Wylie Council approval based on the total (bid +"Contingency Fee"), and applicability of bond requirements. C. Change Orders: • All change orders shall be documented and submitted in writing to the Purchasing Department. • Purchasing Department will obtain the required signatures and distribute as required. • The value of each change order shall be documented and applied against any pre-awarded "Contingency Fee". • Change orders which exceed the "Contingency Fee" in part or in whole will be processed according to Section 252.048 of the Local Government Code. D. Invoice Payment Procedure: • A purchase order will be issued, keeping the original bid/contract amount separate from the "Contingency Fee" amount. • All original scope of work shall be invoiced and paid against the original contract amount. • All change orders will be invoiced against the "Contingency Fee". Gov Code: 2269 (Contracting& Delivery Procedures for Construction Projects) Gov Code: 2253 (Bonds) Local Gov Code: 252.044(Contractor's Bond) Local Gov Code: 252.048 (Change Orders) ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 29 80 01/24/2023 Item G. PROCUREMENT T OLICY CHAPTER 13®SOLE SOURCEP C SES Sole source purchases are allowed by statute (Texas Local Government Code§252.022.a.7), as a "General Exemption"to the competitive bid laws for the following specific situations: A) Items that are available from only one source because of patents, copyrights, secret processes or natural monopolies. B) Films, Manuscripts or Books C) Gas, Water and other Utility Services D) Captive replacement parts or components or equipment E) Books, papers, and other library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials. F) Management services provided by a non-profit organization to a municipal museum, park, zoo or other facility to which the organization has provided significant financial or other benefits. A. Single Source and Brand Name Clarification: Single source or brand name requirements do not automatically fall in to the sole source exemption category, specifically when other products may exist that meet the needs of the department. Final determination on the procurement process will be made by the Purchasing Manager. • Sole source purchases are not the same as a "single source". A single source usually involves restricted or assigned sales territories for authorized dealers or distributors of a manufacturer; where dealers are not allowed to cross over into another's territory. • A"brand name"requirement may or may not be a sole source purchase depending on the nature of the purchase and the method of sales or distribution. B. Written Justification: The City is responsible for obtaining and retaining documentation from the vendor that clearly states the reasons the purchase must be made on a "sole source" basis. • All sole source purchases require written justification in the form of an affidavit which must be completed by the vendor and notarized. This form is available from the Purchasing Department and must be submitted and approved by the Purchasing Manager prior to the purchase being made. C. Notice of Intent to Award a Sole Source Procurement All purchases in excess of$40,000 will be processed by the Purchasing Department and require City Council approval prior to the ordering of goods and services,or start of work. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 30 81 01/24/2023 Item G. PROCUREMENT POLICY CHAPTER 14®E ERGENCY PURCHASES Emergency Purchases are allowed by statute (Texas Local Government Code §252.022.a), as a "General Exemption"to the competitive bid laws for the following specific situations: 1) A procurement made because of a public calamity that requires the immediate appropriation of money to relieve the necessity of the municipality's residents or to preserve the property of the municipality; 2) A procurement necessary to preserve or protect the public health or safety of the municipality's residents 3) A procurement necessary because of unforeseen damage to public machinery, equipment, or other property. An emergency condition creates an immediate and serious need for materials, services, or construction that cannot be met through normal procurement methods and that seriously threatens the functioning of the City or the protection of property or the health or safety of any person. A. Emergency Disaster Declaration: In an event involving a disaster, an emergency declaration will be made by the Mayor. All purchases must be documented through proper state&federal forms and authorized by the Emergency Operations Center Resource Manager or designee. Purchasing for declared disaster situations will be handled as dictated by the Code of Federal Regulations 2CFR200, and current FEMA publication(s), or any other relevant or subsequent law or policy. B. Emergency Purchase Process: (Texas Local Government Code Chapter 252) Departments are encouraged to contact the Purchasing Manager to discuss available options, and are authorized to proceed with an emergency purchase as defined by statute. • Emergency Expenditure between$3,000 and $39,999 The Department may contact a vendor to initiate repair services, or purchase or order materials as needed. Immediately or as soon as feasible, notify Purchasing of the situation and enter the required requisition to facilitate payment noting in the PO Description Box "Emergency Purchase". • Emergency expenditure of$40,000 or Above The Department may contact a vendor to initiate repair services, or purchase or order materials as needed. Immediately orassoon asfeasible,the Department must submit a memo of explanation, including any vendor documentation, and the associated budget codes to the Purchasing Department. Purchasing will create the required agenda resolution to ratify the expense and place it on the next available City Council Meeting Agenda. C. Non-Emergency: An emergency created through a lack of planning or neglect will not be processed as an emergency. Typical examples of such neglect are: • Depletion of stock due to lack of planning. • Building or equipment needing repairs for some time,suddenly becoming an emergency overnight. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 31 82 01/24/2023 Item G. PROCUREMENT POLICY • Orders of materials for projects most of which must be planned weeks or months ahead of time, and requested just before desired use. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 32 83 01/24/2023 Item G. PROCUREMENT POLICY CHAPTER 15®COOPERATIVE PURCHASES Texas Government Code, Chapter 791, and Texas Local Government Code, Chapter 271, authorize the use of cooperative purchases through programs established with another governmental agency (piggy- backing) or an established cooperative agency. These chapters grant the City authorization to utilize contracts that have completed a bid process and been awarded where: • The bid is for the same goods and/or services; and • The bid was completed in accordance with procurement laws that would govern the City's purchase; and • An Interlocal Purchasing Agreement has been approved by both governing bodies. It is the policy of the Purchasing Department to utilize cooperative agencies and interlocal purchasing agreements where a clear and definitive benefit exists. The City must be a member of the cooperative agency which may require Council approval prior to placing an initial order. Interlocal Purchasing Agreements are normally restricted to other governmental agencies located within the Dallas/Fort Worth Metroplex. Purchasing interlocal agreements will not be executed to merely avoid the competitive bid process. Departments should contact the Purchasing Department for assistance with cooperative purchases and any reporting requirements. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 33 84 01/24/2023 Item G. PROCUREMENT POLICY CHAPTER 16®PROCURE T CARD PROGRA S The procurement card programs are a payment mechanism designed to reduce the administrative costs associated with processing small purchases generally less than $1,000. The program is not intended to avoid or bypass appropriate purchasing or payment procedures; but are intended to complement the existing purchasing processes. The procurement card program administrator is the Purchasing Manager. A. General Policies • Program Eligibility: o Must be a full time City employee o Individual must complete purchasing training prior to issuance of the card • Obtaining Procurement Cards: The request must be submitted in writing by the Department Director and sent to the Purchasing Manager. Cards and access to the City's financial system will be issued for eligible full time employees once the cardholder has: o Received the appropriate level of training from the Program Administrator; and o Signed the Cardholder Agreement for the appropriate program,confirming receipt of the card,understanding of the program,and acknowledgement that improper use of the card may result in disciplinary action up to and including termination of employment. • Cardholder Limits and Commodity Restrictions: The Program Administrator, in coordination with the Finance Director, will assign authorization levels to each card. Monthly dollar limits and commodity restrictions will be assigned to all City cards. Some restrictions will apply to the entire program, such as cash advances, alcohol, cigar/tobacco products, casinos/gambling facilities, and international travel or businesses. If a purchase is declined due to an exclusion, contact the Program Administrator. • Program Administrator Responsibilities: (Purchasing Manager) o Serving as the official City liaison with the credit card processing company o Determining appropriate merchandise category exclusions to minimize risk to the City o Maintaining the online card system o Issuing cards and related program information o Replacement of lost, stolen or compromised cards o Assisting departments with appropriate transactions which may exceed their card limits • Department Director Responsibilities: o Approving cardholder requests o Reviewing and approving monthly statements and purchase orders for adherence to policies prior to submission for payment. o End of employment- Prior to an employee's final work day,the Department Director or manager will collect any issued cards and return it to the Program Administrator for cancellation. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 34 85 01/24/2023 Item G. PROCUREMENT POLICY • Cardholder Responsibilities: While the cardholder's name is printed on the card, cards are issued to the City and will have no impact of the cardholder's personal credit. City funds are committed each time the card is used and each individual cardholder is responsible for all charges made to their card. Therefore, by participating in any card program, all cardholders are responsible for: o Compliance with the City of Wylie Credit Card Program Cardholder Agreement and User's Guide. o Cards will be assigned to individual cardholders and are issued within the parameters of a specific fund and department. o Purchases are limited to those within the cardholder's assigned budget, and may not be used to purchase goods or services outside of those the cardholder has access to within the City's financial system. o Cards should not be loaned or given to other employees. o Determining if the transaction is an acceptable use of the card, and if the total expenditure, including delivery or freight charges, is within the cardholder's spending limit o Ensuring that the card is utilized for legitimate City business only; the card is not for personal use o Ensuring that transactions are not split to circumvent the limits assigned to the card, or to circumvent other procurement policies. o Ensuring that the City is not charged sales tax; informing the merchant of the City's tax exempt status prior to placing the order. If sales tax is charged, it is the cardholder's responsibility to contact the vendor and obtain the credit. o Ensuring that transactions that are processed through PayPal (or other 3rd party payment processes) are supported with detailed documentation as to what the purchase is and what it is used for. o Resolving any disputes or billing errors directly with the merchant. Cardholders may notify the Program Administrator if the disputes cannot be resolved. o Submitting the required statement and receipts for payment processing within the required deadlines. o Immediately contacting either the Program Administrator or the bank (using the phone number on the back of the card)of a lost or stolen card, or fraudulent charges. B. Amazon Procurement Program The City participates in the Amazon Procurement Program, and accounts are assigned and managed by the Purchasing Department as the Program Administrator. Department accounts have been assigned to a specific cardholder to make purchases within the financial limits of the named cardholder. Amazon purchases made from accounts or credit cards other than those authorized by the Program Manager are prohibited. C. Violations and Remedies: Violations to the card program may result in disciplinary action, up to and including termination. At a minimum,violations to the card program will result in the following remedies: o First Offense: Written warning of the infraction will be send to the cardholder ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 35 86 01/24/2023 Item G. PROCUREMENT POLICY o Second Offense: Written warning of the infraction will be sent to the cardholder and the department director. o Third Offense: Card privileges will be suspended for 30 days, and the cardholder will surrender the card to the Program Administrator for the duration of the suspension period. o Fourth Offense: Card privileges will be suspended permanently and the cardholder will surrender the card to the Program Administrator ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 36 87 01/24/2023 Item G. PROCUREMENT POLICY CHAPTER 17®GENERAL ITE S A. Tax Exempt Certificates: Department will contact the Purchasing Department via email (purchasing(wylietexas.gov) to request tax exempt certificates. To enable Purchasing to provide the best procurement solution, the request must include: • Vendor Name,Address • Products or services to be purchased • Amount of money budgeted, and the vendor's quote (if available) • Is this a one-time purchase, or will it be repetitive Departments should allow sufficient time for the request to be completed, and forms will be emailed back to the Department unless otherwise requested. B. Various Other Procurement Programs: The Purchasing Department is responsible for setting up various other procurement programs such as: • Copiers • Office Supplies • Sam's memberships • Amazon Business Account (personal accounts may not be used for City purchases) • Home Depot Account • City issued credit cards (see Chapter 15) • Fuel Programs Department requests for access to these programs should be sent via email through the Department Director to Purchasing. Once completed,the Department staff will be notified. C. Petty Cash Purchases If the department maintains a petty cash fund, purchases are usually for items which are not maintained in stock, and are $25.00 or less in value. Departments should note that items purchased through petty cash may be more expensive due to the payment of sales tax;therefore,the use of petty cash should be limited.A City Purchasing Card should be used for most small transactions. When a vendor will allow employees to make a tax exempt purchase, the vendor may require a Tax Exemption Form. Contact the Purchasing Department or Accounts Payable for copies of this exemption certification. D. Fiscal Year Procurement Cut Off: Departments will complete all budgeted purchases no later than August 31st of each fiscal year. Only contracted recurring monthly expenses, break-fix/maintenance, or emergency requisitions will be approved. All exceptions must be pre-approved in writing by the City Manager and submitted to the Purchasing Department. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 37 88.__' 01/24/2023 Item G. PROCUREMENT POLICY CHAPTER 18®BONDS, INSURANCE INDE NIFICATION A. Bond Policy: Bidders may be required (at the statutory limit or less) to provide certain bonds for Public Works/Construction Contracts. This ensures that if the bidder attempts to withdraw after the bid is accepted, the City will not suffer loss. The City will only accept corporate sureties duly qualified and authorized. Personal sureties will not be accepted. All required bonds must be approved by the Purchasing Manager prior to contractors or vendors commencing work. The City may require bonding on other projects to mitigate risk. The City requires payment, performance, and maintenance bonding to be provided on City approved forms in accordance with statute. B. Types of Bonds: Bid Bonds—The Bid Bond minimum limit is five percent (5%) of the total amount bid and would typically apply to construction contracts. It is the City's option whether or not to require bidders to provide a Bid Bond. Certified or cashier's checks will NOT be accepted in lieu of a Bid Bond. Bid Bonds are provided on surety forms. Bid Bonds will be returned to the issuing vendor upon request. Bond must be requested within ten days of award. Payment Bonds are required for Public Works Contracts in excess of fifty thousand dollars($50,000) and must be written for one hundred percent(100%) of the total bid price. The Payment Bond is for the protection of those performing work as subcontractors or suppliers for the prime vendor/contractor. See Texas Government Code § 2253.021 Performance Bonds are required for all Public Works Contracts when the vendor's bid exceeds one hundred thousand ($100,000), and they must be written for one hundred percent (100%) of the total bid price. These bonds are solely for the protection of the City in the event of a contractor/vendor default under Contract terms and conditions. See Texas Government Code § 2253.021 Maintenance Bonds can be written for a term relevant to the project. The coverage provided by a Maintenance Bond is to guarantee against defective workmanship and materials. C. Insurance and Indemnification Policy: The Purchasing Department maintains the City's insurance requirements. Contractors performing work on City property or public right-of-way shall provide indemnification and certificates of insurance or a copy of their insurance policy(s) including a copy of the endorsements necessary to meet contract requirements, and hold harmless and defense clauses. The required language is inserted in solicitation documents by the Purchasing division or owner of the specifications. Contractual agreements must contain a provision that transfers the risk of the project from the City to the contractor. Because the contractor may not have the financial resources to handle the risks that are ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 38 89 01/24/2023 Item G. PROCUREMENT POLICY transferred in the contract, the City requires that insurance be purchased and maintained by the contractor for financial security. • Workers' Compensation Insurance — Per statute, contractors, and subcontractors hired for building and construction projects must provide Workers' Compensation Insurance for their employees regardless of the project's cost. See Texas Labor Code, §406.096. • Purchasing will verify and approve all insurance documents prior to the contract, purchase order, or commencement of work to be performed. *NOTE: These documents may vary based on the perceived exposure, and are constantly updated. City employees should not maintain copies of the insurance requirements for distribution purposes; but should obtain the most current documents from Purchasing on an as needed basis. D. Insuring City Assets: The Purchasing Department is responsible for maintaining insurance coverage for the City's assets including vehicles, mobile equipment, buildings, building contents, playgrounds, parks, water delivery structures, etc. Inventories will be reviewed and confirmed on an annual basis, to allow for adequate coverage and accurate billing. Departments are responsible for maintaining their detail inventory lists and notifying Purchasing of any deletions, additions or changes that would impact the insurance coverages. Examples would include bringing a new water storage tank on-line or removal of an old tank; upgrading of playground equipment located at a park; adding additional lights or parking lot at a park; acquiring new vehicles, heavy equipment or mobile equipment. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 39 90 01/24/2023 Item G. PROCUREMENT POLICY CHAPTER 19—CONTRACTS A contract is a written, legally binding document or obligation to do or abstain from doing an act. The contractor must perform and meet the requirements of the contract. All guidance provided to a contractor must be within the scope of the contract. A. Purchase Orders: A Purchase Order is a legal contract. Purchase orders are generated and approved before goods or services are ordered and received. This ensures purchases are approved and within budget. A Purchase Order or Contract is required when insurance and indemnification is required. See Chapter"Requisitions and Purchase Orders". B. Contracts Greater than : All purchases greater than$40,000 may require a written contract, insurance,and/or bonds. City Council approval is required at $50,000 and Legal review of the contract may be required. All contracts will be processed by Purchasing. C. Annual/Term Contracts: The City may use an annual/term fixed price contract to obtain required goods or services from a chosen vendor for a specified time period. These contracts eliminate the necessity of bidding commodities and performing HUB searches each time they are needed. Annual contracts require a bid solicitation (or use of a cooperative contract), award process, and purchase order. • Purchases of items or services that may be readily quantified (such as a fixed hourly rate or a fixed price per linear foot) will be awarded on a competitive sealed bid or competitive sealed proposal (CSP) basis and approved according to expenditure authority. • Requested items should be detailed by description and unit cost on the P.O. or an attached document, with the remarks section stating that the items are under contract to the specified vendor. Releases will then be reconciled with invoices. Note: Items or a service purchased from a source other than the vendor awarded the work is a direct violation of purchasing policy unless such purchase is an emergency purchase. If there are issues with a vendor's performance, contact the Purchasing department. (An emergency is defined in Chapter "Emergency Purchases".) ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 40 91 01/24/2023 Item G. PROCUREMENT POLICY CHAPTER 20®CONTRACTMANAGEMENT&VENDOR PERFOR ANCE A. General Responsibilities: Purchasing will be responsible for all contract documents that are issued through the Purchasing Department. These documents will include: D. Bid related documents E. Insurance certificates F. Bonds G. Any written contract H. Change Orders I. Relevant correspondence; including copies of "Notice to Proceed" documents issued by the department J. Tier 2 Contract Administration (habitual or unresolved contract issues) a. Vendor performance issues (department will be required to submit written documentation) b. Legal issues, including notice to terminate (which may include City Council action) City Staff will be responsible for: • Issuing the purchase order • Issuing a written "Notice to Proceed", and copying the assigned Purchasing staff • Tier 1 Contract Administration o Monitoring contract compliance; including meeting minutes/notes o Accurate and timely deliveries and invoicing • Submitting change orders to Purchasing for processing • Requests for payments • Inspection and Testing • Documentation or reporting as required by local, state or Federal grants • Acceptance of goods,work or services performed Vendors play a crucial role in the City's day-to-day operations. As such, maintaining communication during the vendor obligation period is important. Both City staff and the vendor should provide open communication on project status, current issues, and potential issues. B. Non-Performing Vendors: When a vendorfailsto perform according to the Agreement(Purchase Order,Annual Agreement,Contract, and/or Specification),the Department Director(or designee) and Purchasing will: • Document the issues in writing to the vendor. • Schedule a meeting to discuss the issues. • Document a mutually agreed upon resolution in writing and signed by the department and the vendor. A copy will be forwarded to the Purchasing Department for the bid file. If a vendor's performance remains non-compliant or otherwise unsatisfactory,the department will notify the Purchasing Manager who will attempt to facilitate a resolution. If Purchasing cannot resolve the issues, the Purchasing Manager and the Department Director will make a joint determination to cancel the contract per its terms and conditions. Purchasing will then work with the department to obtain a substitute vendor or issue a new solicitation in accordance with purchasing policy. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 41 92 01/24/2023 Item G. PROCUREMENT POLICY CHAPTER 21®ASSET AND LUS DISPOSAL Surplus property is property owned by the City that is no longer needed. There are multiple formats for the disposal process such as auction,trade-in, recycling,and destruction. All methods require written approval. • Departments must contact the Purchasing Manager or designee prior to the relocation or disposal of property so that accounting records are accurately maintained. This is particularly important when the item was originally purchased as a capital asset to be depreciated • Disposition forms/Capital Asset Forms are available from Finance or Purchasing. • After approval by the Purchasing Department,equipment should be stored by the department until the property can be removed for auction. A. Transfer of Surplus Goods Within The City • Equipment(vehicles,trailers, etc.) Directors may request that an item be transferred between departments. Such requests should be indicated on the Purchasing Disposal Form and sent to Purchasing requesting a transfer of all desired equipment. If the transfer of equipment is approved,the Purchasing Division shall notify Accounting for updates to the Fixed Asset List, and make other inventory, billing and insurance changes as necessary. B. Disposal of Goods,Salvage or Surplus Property The Purchasing Manager or designee shall be responsible for the disposal of City owned real property and salvage/surplus personal property(excluding property or evidence in possession of the City of Wylie Police Department which is governed by court order). Neither employees of the City, their family members nor the general public may acquire City owned property outside of one of the following methods. • Personal property that has been deemed salvage or surplus may be disposed of by one the following methods, as deemed appropriate by the Purchasing Manager: o sold at a public auction o sold by soliciting competitive bids o sold or donated to a political subdivision of this state, a state agency of this state,or an entity of the federal government o traded-in on new property of the same type during the purchasing process o Library sponsored used book sales or donations to the Friends of the Library o destroyed, if such property has a value of less than $500 • Real Property(all land, structures,firmly attached and integrated equipment) shall be disposed of in accordance with Texas Local Gov. Code 253 and 272, including: o Requirements for public notification, o Notice of intent to sell at public auction or o Notice of intent to sell by soliciting competitive bids. C. Donations Contact the Purchasing Department prior to making donations outside agencies or organizations.- ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 42 93 01/24/2023 Item G. PROCUREMENT POLICY CHAPTER 22-REQUISITIONS& PURCHASE ORDERS A.Access to Incode: For full time employees of the City of Wylie Request for access will be submitted by the Department Director to the Purchasing Manager. Upon approval, the Purchasing Manager will notify the employee to schedule a date/time to complete the mandatory Purchasing Training. When the training has been completed the Purchasing Manager shall forward the access request to the Assistant Finance Director for access to the City's financial system. B. Requisition Process: The requisition is the first step in the creation of a legal binding contract with the vendor. The resulting purchase order must contain sufficient information to allow the vendor to fulfill the order. Departments must not rely upon verbal conversations to ensure that the goods or services ordered are correct. Upon receipt of the appropriate documentation (quotes, bids, contracts, etc.), the authorized Department representative will: • Review the documentation to ensure compliance with contract requirements, shipping terms, payment terms, insurance requirements, etc. • Review Incode Vendor file to see if vendor is listed and active. Be sure to verify address (some vendors have several addresses). • If vendor name and address is not listed, contact the vendor for a W9 and complete the New Vendor forward. Forward those forms to the Purchasing Department (purchasing@wylietexas.gov). • Compile and store all supporting documentation in accordance with Chapter 6 "Procurement Thresholds". Note: Long term storage of documentation will be migrating to Laserfiche, as licenses and training are available. • Requisition information must be detailed and goods and/or services should generally be itemized. Where there is insufficient field space to include a complete description, departments should utilize the "P.O. Description" box for additional information, or reference an attached quote. • The "P.O. Description" box must also include such items as: o Dates of services or term coverage (example: June 1, 20XX—May 31, 20XX) o Contract numbers o Delivery instructions o Insurance Requirements • Complete the requisition process and print the purchase order. C. Purchase Orders: As stated in Chapter 18 (Contracts), purchase orders are legal binding documents. For the terms of the contract to be fulfilled, the purchase order must be printed and sent to the vendor (emailing is acceptable). Verbal orders are not acceptable, and in many cases may expose the City to unnecessary insurance and financial risks. D. Deletion of Purchase Orders: For deletion of a purchase order prior to any payments, the department must contact Purchasing to request the deletion. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 43 94 01/24/2023 Item G. PROCUREMENT POLICY Contact A/P for the exceptions: • Closing out of un-used funds of an existing purchase order(where payments have already been made). • Year-end closing. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 44 95 01/24/2023 Item G. PROCUREMENT POLICY CHAPTER 23®RECEIPT OF GOODS/SERVICES A. Inspecting Goods or Services: It is the responsibility of the using department to inspect all equipment and supplies and to initiate the payment process. • All deliveries should be inspected promptly, and whenever possible, in the presence of the vendor or shipper. The individual inspecting the merchandise or service performed should pay particular attention to the following: o The quantity shipped is consistent with the quantity ordered. o Note any damaged or defective merchandise on both the receipt (loading)ticket and/or the Purchase Order. o Verify that merchandise received meets the specifications defined on the purchase order specifications or annual contract agreement. Verify that the scope of services detailed on the purchase order has been performed to the department's satisfaction. • After verifying that the materials received are accurate and in good condition, or that services have been performed,the using department shall sign a copy of the Purchase Order, attach the invoice and forward to Accounts Payable within 3-5 days. B. Partial Deliveries: When partial deliveries are made,the Department shall indicate a partial delivery on the Purchase Order receiving copy, noting the items and quantities received. • Departments should attach a copy of the Purchase Order to the receiving documents, clearly mark that it is a "partial payment" and submit to Accounts Payable within 5 days of receipt of merchandise. Using departments may not hold any paperwork pending delivery of back- ordered merchandise. The department should contact Purchasing if there are any questions. • Accounting will process payment for quantities delivered. • Payment for back-ordered items will be processed after receipt of forms indicating that delivery is complete. • Upon delivery of all back-ordered merchandise, the using department should note on the receiving copy of the purchase order the items to be paid for and that the delivery is complete. C. Defective or Damaged Merchandise: When an item is defective, damaged, or does not meet specifications, the department will notified the vendor in writing within 2 days (unless otherwise noted) of discovery of the discrepancy to discuss remedies and invoices. • Any merchandise in need of return that was ordered by Purchasing will be handled by the Purchasing Division. • Returns for orders placed by the using departments will be the responsibility of the department. ISSUED:OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 45 96 PROCUREMENT POLICY ISSUED: OCTOBER 2020 REVISED: JANUARY 2023 Approved by Wylie City Council: 9/27/2022; 1/24/2023 page 46 PROCUREMENT MANUAL ACKNOWLEDGMENT OF RECEIPT The undersigned employee acknowledges that they have received the City of Wylie Purchasing Manual and that they understand the provisions therein and, in consideration of their employment or continued employment, acknowledge and agree that: 1. The policies in the manual are not contractual in nature . 2. Failure or refusal to sign this acknowledgement may result in termination of your participation in procurement activities and access to the City’s procurement financial system. 3. The City can unilaterally rescind, modify or add to the policies in the manual at any time without notice. 4. You have read and understand the policies contained in this manual, including those related to purchasing card usage (and its associated documents). 5. No rule contained herein or adopted pursuant hereto guarantees any employee of the City a right to continued employment. The City always retains the right to exercise discretion in amending these rules and in interpreting them reasonably. 6. Any agreement(s) or assurance(s) concerning the terms, conditions or duration of any individual’s employment are not binding unless they are in writing and signed by the appropriate official (City Manager). Accepted this ____ day of _______________, 20___, by: ___________________________ _____________________ Employee Name (print) Department (print) _________________________________ Signature 97 01/24/2023 Item G. Wylie City Council AGENDA REPORT Department: Planning Account Code: Prepared By: Jasen Haskins, AICP Subject Consider, and act upon, Ordinance No. 2023-04 for a change in zoning from Commercial Corridor (CC) to Commercial Corridor - Special Use Permit (CC-SUP) to allow for an auto sales use on 1.27 acres located at 2021 N. State Highway 78 (ZC 2022-15). Recommendation Motion to approve the Item as presented. Discussion Final approval of Zoning Case 2022-15 requires an Ordinance to amend the zoning accordingly in the Official Zoning map of the City; and providing a penalty clause, a repeal clause, a savings clause, a severability clause, and an effective date. The subject Ordinance allows for the rezoning. Exhibit A (Legal Description), Exhibit B (SUP Conditions), and Exhibit C (Zoning Exhibit) are included and made a part of this Ordinance. The above described property shall be used only in the manner and for the purposes provided for in the Comprehensive Zoning Ordinance of the City, as amended herein by the granting of this zoning classification. 98 01/24/2023 Item H. Ordinance No. 2023-04 Special Use Permit for Mega Tire (ZC 2022-15) Page 1 of 2 ORDINANCE NO. 2023-04 AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, AMENDING THE COMPREHENSIVE ZONING ORDINANCE OF THE CITY OF WYLIE, AS HERETOFORE AMENDED, SO AS TO CHANGE THE ZONING ON THE HEREINAFTER DESCRIBED PROPERTY, ZONING CASE NUMBER 2022-15, FROM COMMERCIAL CORRIDOR (CC) TO COMMERCIAL CORRIDOR - SPECIAL USE PERMIT (CC-SUP) TO ALLOW FOR AN AUTO SALES USE; PROVIDING FOR A PENALTY FOR THE VIOLATION OF THIS ORDINANCE; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Planning and Zoning Commission and the governing body of the City of Wylie, Texas, in compliance with the laws of the State of Texas with reference to the amendment of the Comprehensive Zoning Ordinance, have given the requisite notices by publication and otherwise, and after holding due hearings and affording a full and fair hearing to all property owners generally and to owners of the affected property, the governing body of the City is of the opinion and finds that the Comprehensive Zoning Ordinance and Map should be amended; NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1: That the Comprehensive Zoning Ordinance of the City of Wylie, Texas, be, and the same is hereby, amended by amending the Zoning Map of the City of Wylie, to give the hereinafter described property a new zoning classification of Commercial Corridor - Special Use Permit, said property being described in Exhibit A (Legal Description), hereto and made a part hereof for all purposes. SECTION 2: That all ordinances of the City in conflict with the provisions of this ordinance be, and the same are hereby, repealed and all other ordinances of the City not in conflict with the provisions of this ordinance shall remain in full force and effect. SECTION 3: That the above described property shall be used only in the manner and for the purposes provided for in the Comprehensive Zoning Ordinance of the City, as amended herein by the granting of this zoning classification as described in Exhibit B (SUP Conditions) and Exhibit C (Zoning Exhibit). SECTION 4: Any person, firm or corporation violating any of the provisions of this ordinance or the Comprehensive Zoning Ordinance, as amended hereby, commits an unlawful act and shall be subject to the general penalty provisions of Section 1.5 of the Zoning Ordinance, as the same now exists or is hereafter amended. SECTION 5: Should any paragraph, sentence, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof, other than the part so declared to be invalid, illegal or unconstitutional, and shall not affect the validity of the Comprehensive Zoning Ordinance as a whole. SECTION 6: This ordinance shall be in full force and effect from and after its adoption by the City Council and publication of its caption as the law and the City Charter provide in such cases. 99 01/24/2023 Item H. Ordinance No. 2023-04 Special Use Permit for Mega Tire (ZC 2022-15) Page 2 of 2 SECTION 7: The repeal of any ordinance, or parts thereof, by the enactment of this Ordinance, shall not be construed as abandoning any action now pending under or by virtue of such ordinance; nor shall it have the effect of discontinuing, abating, modifying or altering any penalty accruing or to accrue, nor as effecting any rights of the municipality under any section or provisions of any ordinances at the time of passage of this ordinance. DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas, this 24th day of January, 2023. ________________________________ Matthew Porter, Mayor ATTEST: __________________________ Stephanie Storm, City Secretary DATE OF PUBLICATION: February 1, 2023, in the Wylie News 100 01/24/2023 Item H. EXHIBIT A Legal Description 2021 N. State Highway 78 Wylie TX 75098 Being Block A, Lot 1 of the Wylie Auto Addition 101 01/24/2023 Item H. Wylie Auto & Tire Shop Lot 1, Block A EXHIBIT “B” Conditions For Special Use Permit I. PURPOSE: The purpose of this Special Use Permit is to allow for a limited accessory Vehicle Display, Sales, or Service Use and the continued use of a Automobile Repair, Minor use. II. GENERAL CONDITIONS: 1. The site shall be developed and uses allowed shall be in accordance with Commercial Corridor (CC) design standards, as provided in Article 4 and 5 of the City of Wylie Zoning Ordinance as adopted April 2021, except as specifically provided herein. 2. This Special Use Permit shall not affect any regulations within the Zoning Ordinance (adopted as of April 2021), except as specifically provided herein. 3. The design and development of the Wylie Auto & Tire Shop Lot 1, Block A development shall take place in general accordance with the Zoning Exhibit (Exhibit C). III. SPECIAL CONDITIONS: 1. The Automotive Repair, Minor use shall become legally conforming. 2. Vehicle Display, Sales, and Service shall be allowed, only as an accessory use to the Automobile Repair, Minor Use and shall only be allowed until the main use ceases. a. The Vehicle Display, Sales, and Service Use shall apply to new and used passenger automobiles, sport utility vehicles, and light trucks only. b. The above use shall be prohibited from providing financial services for the purchase, lease, or transfer of vehicles. Financial services, if required, shall be provided through third parties. c. Servicing of said vehicles shall be limited to those services allowed under the Automotive Repair, Minor Use. d. A maximum of 10 parking spaces for auto sales shall be allowed as depicted on Lot 1, Block A of the Zoning Exhibit (Exhibit C) 3. The overall parking for the site shall be at a ratio of 1:400 requiring a minimum of 23 parking spaces. 102 01/24/2023 Item H. 4. The Zoning Exhibit (Exhibit C) shall serve as the Site Plan for the development. Approval of the SUP shall act as site plan approval. 103 01/24/2023 Item H. 10401/24/2023 Item H. Wylie City Council AGENDA REPORT Department: Planning Account Code: Prepared By: Jasen Haskins, AICP Subject Consider, and act upon, Ordinance No. 2023-05 for a change in zoning from Downtown Historic District (DTH) to Downtown Historic District - Special Use Permit (DTH-SUP) to allow for a brewery, food truck park, and events center within the Downtown Historic District, property located at 106 N. Birmingham Street (ZC 2022-16). Recommendation Motion to approve the Item as presented. Discussion Final approval of Zoning Case 2022-16 requires an Ordinance to amend the zoning accordingly in the Official Zoning map of the City; and providing a penalty clause, a repeal clause, a savings clause, a severability clause, and an effective date. The subject Ordinance allows for the rezoning. Exhibit A (Legal Description), Exhibit B (SUP Conditions), and Exhibit C (Zoning Exhibit) are included and made a part of this Ordinance. The above described property shall be used only in the manner and for the purposes provided for in the Comprehensive Zoning Ordinance of the City, as amended herein by the granting of this zoning classification. 105 01/24/2023 Item I. Ordinance No. 2023-05 Special Use Permit for Glen Echo Brewery (ZC 2022 -16) Page 1 of 2 ORDINANCE NO. 2023-05 AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, AMENDING THE COMPREHENSIVE ZONING ORDINANCE OF THE CITY OF WYLIE, AS HERETOFORE AMENDED, SO AS TO CHANGE THE ZONING ON THE HEREINAFTER DESCRIBED PROPERTY, ZONING CASE NUMBER 2022-16, FROM DOWNTOWN HISTORIC DISTRICT (DTH) TO DOWNTOWN HISTORIC DISTRICT - SPECIAL USE PERMIT (DTH-SUP) TO ALLOW FOR A BREWERY, EVENTS CENTER, AND FOOD TRUCK PARK ; PROVIDING FOR A PENALTY FOR THE VIOLATION OF THIS ORDINANCE; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Planning and Zoning Commission and the governing body of the City of Wylie, Texas, in compliance with the laws of the State of Texas with reference to the amendment of the Comprehensive Zoning Ordinance, have given the requisite notices by publication and otherwise, and after holding due hearings and affording a full and fair hearing to all property owners generally and to owners of the affected property, the governing body of the City is of the opinion and finds that the Comprehensive Zoning Ordinance and Map should be amended; NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1: That the Comprehensive Zoning Ordinance of the City of Wylie, Texas, be, and the same is hereby, amended by amending the Zoning Map of the City of Wylie, to give the hereinafter described property a new zoning classification of Downtown Historic District - Special Use Permit, said property being described in Exhibit A (Legal Description), hereto and made a part hereof for all purposes. SECTION 2: That all ordinances of the City in conflict with the provisions of this ordinance be, and the same are hereby, repealed and all other ordinances of the City not in conflict with the provisions of this ordinance shall remain in full force and effect. SECTION 3: That the above described property shall be used only in the manner and for the purposes provided for in the Comprehensive Zoning Ordinance of the City, as amended herein by the granting of this zoning classification as described in Exhibit B (SUP Conditions) and Exhibit C (Zoning Exhibit). SECTION 4: Any person, firm or corporation violating any of the provisions of this ordinance or the Comprehensive Zoning Ordinance, as amended hereby, commits an unlawful act and shall be subject to the general penalty provisions of Section 1.5 of the Zoning Ordinance, as the same now exists or is hereafter amended. SECTION 5: Should any paragraph, sentence, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof, other than the part so declared to be invalid, illegal or unconstitutional, and shall not affect the validity of the Comprehensive Zoning Ordinance as a whole. SECTION 6: This ordinance shall be in full force and effect from and after its adoption by the City Council and publication of its caption as the law and the City Charter provide in such cases. 106 01/24/2023 Item I. Ordinance No. 2023-05 Special Use Permit for Glen Echo Brewery (ZC 2022 -16) Page 2 of 2 SECTION 7: The repeal of any ordinance, or parts thereof, by the enactment of this Ordinance, shall not be construed as abandoning any action now pending under or by virtue of such ordinance; nor shall it have the effect of discontinuing, abating, modifying or altering any penalty accruing or to accrue, nor as effecting any rights of the municipality under any section or provisions of any ordinances at the time of passage of this ordinance. DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas, this 24th day of January, 2023. ________________________________ Matthew Porter, Mayor ATTEST: __________________________ Stephanie Storm, City Secretary DATE OF PUBLICATION: February 1, 2023, in the Wylie News 107 01/24/2023 Item I. 10801/24/2023 Item I. EXHIBIT “B” Special Use Permit – Downtown Historic District (DTH) 106 N Birmingham Street ZC 2022-16 I. PURPOSE: 1. The purpose of this Special Use Permit is to allow for the Brewery, Brew Pub, Food Truck Park, and Events Center uses within the Downtown Historic District using the existing building located at 106 N Birmingham Street 2. By definition, a Brewery and Brew Pub, unless otherwise preempted by state law, is a facility for the manufacture, packaging, labeling, storage, distribution, and selling for on- and off-premises consumption of beer and malted beverages. II. GENERAL CONDITIONS: 1. This exhibit shall not affect any regulations within the Zoning Ordinance (adopted as of April 2021 and amended April 2022), except as specifically provided herein. 2. The design and development of the Brewery shall be in accordance with Section III below and the Zoning Exhibit (Exhibit B). III. SPECIAL CONDITIONS: A. Permitted Uses 1. This SUP will allow Brewery & Brew Pub as a permitted use within Downtown Historic District as follows: ●Beer and/or wine may be sold for on- and off-premises consumption in accordance with the Texas Alcohol Beverage Code, as it exists or may be amended. ●The total revenue from the sale of beer and/or wine may be up to 100% of the total revenue of the business. ●The location of the use shall not be restricted by the distances to other Beer & Wine Package Sales establishments, churches, schools, city parks, or residences, as defined in Section 5.2.F.23 or any other distance restriction to other businesses defined in the Zoning Ordinance. 109 01/24/2023 Item I. ●The manufacturing of beer and/or malt beverages will be allowed on site. The production and packaging of beer and/or malt beverages will take place inside the facility, however, the fermentation process may be allowed to take place in specially designed tanks located outside the building. If outside tanks are used in the future, they will be secured by fencing but not screened from public view as they add to the aesthetic of the Brewery. Fencing will consist of chain link or similar open-web wire mesh material secured to a metal frame and located in close proximity to the tanks. 2. The Food Truck Park Use shall be allowed on site to provide service during the defined hours of operation of the Brewery. 3. The Events Center Use shall be allowed on site. Some or all the site may be used to host a private event, celebration, ceremony, reception, corporate function, or similar activity subject to a use agreement between a private group or individual and the facility owner. 4. Hours of operation for the purpose of serving customers or events shall be limited to the following hours of operation for the sale of beer and wine as allowable by the Texas Alcoholic Beverage Commission, currently: ●8:00 AM – 9pm Monday thru Thursday ●10:00 AM – midnight on Friday-Sunday Hours of operation for the manufacture, packaging, labeling, storage, and distribution of beer and malted beverages may extend outside of these times and will be limited to activities inside the facility if occurring during non-standard hours. B. Downtown Historic District Development and Design Standards 1. Site Design Standards ●The shade cover proposed shall be constructed within 4 feet of the front property line. ●Parking for Nonresidential Uses – Onsite parking will not be required for the subject property. 2. Architectural Design Standards – 110 01/24/2023 Item I. ●The color palette for the building shall be in general compliance with the exhibits provided in Attachment C, which match the trademarked colors of the proposed Craft Brewery and add to the image and appeal of the structure. 3. Signs – The provisions of Section 6.3 of the Zoning Ordinance shall not apply to this SUP and shall be replaced with the following: ●Signs shall be constructed of materials that are not subject to deterioration as determined by the International Building Code and/or the City of Wylie Building Official. Internally illuminated signs must be constructed of non-combustible material or approved plastics. ●A single, decorative sign will be allowed to be installed on the roof, above the cornice line of the building face, similar to the exhibits contained in Attachment C. The maximum allowable area of this sign shall not exceed 100 square feet and the sign shall be limited in height to the top of the adjacent buildings. ●Additional signage, including artwork and murals, will be allowed on all building facades. Content of such artwork shall be related to the business and/or the historic nature of the City of Wylie. IV. General Development Regulations 1. Screening of mechanical equipment is not required for this existing structure. 2. Residential Style Trash receptacles will be placed behind the existing building without screening. 3. A Traffic Management Study will not be required. 4. The requirements of Section 7.7 Landscape Requirements do not apply. 111 01/24/2023 Item I. SITE PLAN106 N. BIRMINGHAM ST.9/26/22PROPERTY OWNER:WYLIE EDC250 S SH 78WYLIE, TX 75098(972) 442-7901JASON@WYLIEEDC.COMDRAWINGS PREPARED BY:STEVEN P. SCHOENEKASE, PE7289 MOSS RIDGE ROADPARKER, TX 75002(214) 649-7742SCHOENEKASE@VERIZON.NETPROPOSED SITE PLANEXISTING SITE PLANPotentialFood TruckParking11201/24/2023 Item I. BIRMINGHAM RENDERS106 N. BIRMINGHAM ST.9/26/22NW PERSPECTIVESW PERSPECTIVEPATIO PERSPECTIVEWEST ELEVATION (FRONT)PROPERTY OWNER:WYLIE EDC250 S SH 78WYLIE, TX 75098(972) 442-7901JASON@WYLIEEDC.COM11301/24/2023 Item I. Wylie City Council AGENDA REPORT Department: Planning Account Code: Prepared By: Jasen Haskins, AICP Subject Consider, and act upon, Ordinance No. 2023-06 for a change in zoning from Downtown Historic District – Residential only to allow Commercial and/or Residential uses, located at 280 W. Brown St. within the Downtown Historic District (ZC 2022- 18). Recommendation Motion to approve the Item as presented. Discussion Final approval of Zoning Case 2022-18 requires an Ordinance to amend the zoning accordingly in the Official Zoning map of the City; and providing a penalty clause, a repeal clause, a savings clause, a severability clause, and an effective date. The subject Ordinance allows for the rezoning. Exhibit A (Legal Description) is included and made a part of this Ordinance. The above described property shall be used only in the manner and for the purposes provided for in the Comprehensive Zoning Ordinance of the City, as amended herein by the granting of this zoning classification. 114 01/24/2023 Item J. Ordinance No. 2023-06 280 W. Brown Street (ZC 2022-18) Page 1 of 2 ORDINANCE NO. 2023-06 AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, AMENDING THE COMPREHENSIVE ZONING ORDINANCE OF THE CITY OF WYLIE, AS HERETOFORE AMENDED, SO AS TO CHANGE THE ZONING ON THE HEREINAFTER DESCRIBED PROPERTY, ZONING CASE NUMBER 2022-18, FROM DOWNTOWN HISTORIC DISTRICT – RESIDENTIAL ONLY TO ALLOW COMMERCIAL AND/OR RESIDENTIAL USES; PROVIDING FOR A PENALTY FOR THE VIOLATION OF THIS ORDINANCE; PROVIDING FOR THE REPEAL OF ALL ORDINANCES IN CONFLICT; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Planning and Zoning Commission and the governing body of the City of Wylie, Texas, in compliance with the laws of the State of Texas with reference to the amendment of the Comprehensive Zoning Ordinance, have given the requisite notices by publication and otherwise, and after holding due hearings and affording a full and fair hearing to all property owners generally and to owners of the affected property, the governing body of the City is of the opinion and finds that the Comprehensive Zoning Ordinance and Map should be amended; NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1: That the Comprehensive Zoning Ordinance of the City of Wylie, Texas, be, and the same is hereby, amended by amending the Zoning Map of the City of Wylie, to give the hereinafter described property a new zoning classification of Downtown Historic District, said property being described in Exhibit A (Legal Description), hereto and made a part hereof for all purposes. SECTION 2: That all ordinances of the City in conflict with the provisions of this ordinance be, and the same are hereby, repealed and all other ordinances of the City not in conflict with the provisions of this ordinance shall remain in full force and effect. SECTION 3: That the above described property shall be used only in the manner and for the purposes provided for in the Comprehensive Zoning Ordinance of the City, as amended herein by the granting of this zoning classification. SECTION 4: Any person, firm or corporation violating any of the provisions of this ordinance or the Comprehensive Zoning Ordinance, as amended hereby, commits an unlawful act and shall be subject to the general penalty provisions of Section 1.5 of the Zoning Ordinance, as the same now exists or is hereafter amended. SECTION 5: Should any paragraph, sentence, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof, other than the part so declared to be invalid, illegal or unconstitutional, and shall not affect the validity of the Comprehensive Zoning Ordinance as a whole. SECTION 6: This ordinance shall be in full force and effect from and after its adoption by the City Council and publication of its caption as the law and the City Charter provide in such cases. SECTION 7: The repeal of any ordinance, or parts thereof, by the enactment of this Ordinance, shall not be construed as abandoning any action now pending under or by virtue of such ordinance; nor 115 01/24/2023 Item J. Ordinance No. 2023-06 280 W. Brown Street (ZC 2022-18) Page 2 of 2 shall it have the effect of discontinuing, abating, modifying or altering any penalty accruing or to accrue, nor as effecting any rights of the municipality under any section or provisions of any ordinances at the time of passage of this ordinance. DULY PASSED AND APPROVED by the City Council of the City of Wylie, Texas, this 24th day of January, 2023. ________________________________ Matthew Porter, Mayor ATTEST: __________________________ Stephanie Storm, City Secretary DATE OF PUBLICATION: February 1, 2023, in the Wylie News 116 01/24/2023 Item J. 117 01/24/2023 Item J. Wylie City Council AGENDA REPORT Department: Police Account Code: Prepared By: Anthony Henderson Subject Hold a Public Hearing to discuss the need to continue, abolish or modify the City of Wylie Juvenile Curfew Ordinance No. 2020-22. Recommendation Public Hearing only, no action required. Discussion Texas Local Government Code 3a70.002 states that before the third anniversary of the date of adoption of a juvenile curfew ordinance by a general-law municipality or a home-rule municipality or an order of a county commissioners court, and every third year thereafter, the governing body of the general-law municipality or home-rule municipality or the commissioners court of the county shall: 1. Review the ordinance or order's effects on the community and on problems the ordinance or order was intended to remedy; 2. Conduct public hearings on the need to continue the ordinance or order; and 3. Abolish, continue, or modify the ordinance or order. Section 3b7.002 states: b) Failure to act in accordance with Subsections (a) (1)-(3) shall cause the ordinance or order to expire. The first of two public hearings to receive input from citizens and staff is scheduled for January 24, 2023. The second public hearing and action regarding Ordinance No. 2020-22 will be held at the February 14, 2023 City Council Meeting. This Ordinance gives officers a tool to reduce juvenile crime by specifying times and locations where unsupervised juveniles under the age of 17 can be. Statistics have shown that when unsupervised juveniles gather late at night they are at higher risk of becoming a victim of crime or becoming involved in criminal activity. Since the last ordinance review, Wylie officers have responded to seven calls in regard to curfew violations and issued 16 citations. 118 01/24/2023 Item 1. 1 ORDINANCE NO. 2020-22 AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, CONTINUING THE CITY'S JUVENILE CURFEW ORDINANCE AND MAKING FINDINGS RELATED THERETO; PROVIDING A SAVINGS/REPEALING CLAUSE, SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. WHEREAS, on February 28, 2017, the City Council of the City of Wylie, Texas ("City Council") last reviewed and continued the curfew ordinance for minors in the City of Wylie, Texas ("Wylie"), which is codified at Article III of Chapter 74 of the Wylie Code of Ordinances, Ordinance No. 2005-07, as amended ("Code of Ordinances"); and WHEREAS, the City Council has reviewed the ordinance's effects on the community and on the problems the ordinance was intended to remedy; and WHEREAS, the City Council has held two public hearings on the need to continue the ordinance; and WHEREAS, the City Council finds that the continuance of the curfew ordinance is necessary to provide for the protection of minors from each other and from other persons, for the enforcement of parental control over and responsibility for children, for the protection of the general public and for the reduction of the incidence of juvenile violence and criminal activity; and WHEREAS, the City Council finds that it is in the best interest of the citizens of Wylie to continue the curfew ordinance in accordance with Section 370.002 of the Texas Local Government Code. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: SECTION 1: Findings Incorporated. The findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. SECTION 2: Continuation of Ordinance. In accordance with Section 370.002 of the Texas Local Government Code, the City Council has reviewed the City's juvenile curfew ordinance and its effects on the community and on the problems the ordinance was intended to remedy, has conducted two public hearings and desires to continue the ordinance. Accordingly, Wylie's juvenile curfew ordinance, codified at Article III of Chapter 74 of the Wylie Code of Ordinances, is hereby continued. SECTION 3: Savings/Repealing. All provisions of any ordinance in conflict with this Ordinance are hereby repealed to the extent they are in conflict, but such repeal shall not abate any pending prosecution for violation of the repealed ordinance, nor shall the repeal prevent a prosecution from being commenced for any violation if occurring prior to the repeal of the ordinance. Any remaining portions of said ordinances shall remain in full force and effect. Ordinance No. 2020-22 Continuing Juvenile Curfew Ordinance Page 1 of 2 2976560 119 01/24/2023 Item 1. SECTION 4: Severability. Should any section, subsection, sentence, clause or phrase of this Ordinance be declared unconstitutional and/or invalid by a court of competent jurisdiction, it is expressly provided that any and all remaining portions of this Ordinance shall remain in full force and effect. The City Council declares that it would have passed this Ordinance, and each section, subsection, clause or phrase thereof, regardless of whether any one or more sections, subsections, sentences, clauses or phrases is declared unconstitutional and/or invalid. SECTION 5: Effective Date. This Ordinance shall take effect immediately upon its passage. DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS on this 25th day of February 2020. Eric Hogue, May ATTESTED TO AND CORRECTLY RECORDED BY: Stephanie Storm, City Secretary Ordinance No. 2020-22 Continuing Juvenile Curfew Ordinance Page 2 of 2 2976560 1 120 01/24/2023 Item 1. Wylie City Council AGENDA REPORT Department: WEDC Account Code: Prepared By: Jason Greiner Subject Present, and place on file, the Wylie Economic Development Corporation 2022 Annual Report. Recommendation Motion to accept the Item, and place on file, as presented. Discussion As per the WEDC Bylaws, the WEDC must present an annual report to the Wylie City Council no later than January 31 of each year. The report must include, but is not limited to, a review of all expenditures made by the Board, a review of accomplishments, and a review of other than direct economic development. Staff believes the attached Report meets the intent of the requirement of the Bylaws with the same being presented to the WEDC Board of Directors on January 23, 2023. 121 01/24/2023 Item 2. Wylie Economic Development Corporation Beginning Fund Balance Total Revenue Sales Tax Lease Income Gain/Loss –Sale of Property Loan Proceeds $2,951,908 $20,481,730 $4,161,282 $139,485 ($70,386) $16,216,000 Total Expenses Personnel Administrative Marketing Debt Service Land Incentives Environmental & Site Work Ending Cash Balance $13,034,616 $388,468 $159,003 $182,181 $5,379,321 $4,136,097 $399,122 $1,716,509 $10,747,516 Total Incentives Office, Med, & Comm Industrial Sales Tax Programs One-Time/Final Pmnt. $399,122 $163,073 $81,500 $154,549 $126,140 Total Land Holdings Improvements Cost Basis Outstanding Debt Properties Acquired in FY22 48.2406 AC 63,861 SF $16,620,961 $7,990,619 802 W Kirby, 401 N Keefer, 104 S Ballard, 305 S Ballard, 200 W Brown, and a lot formerly owned by Union Pacific at Keefer/Brown Taxable Assessed Valuation New Construction Overall Gain/Loss (5-years) Comm & Industrial New Construction Gain/Loss (5-Years) $6.2 B $191 MM $3.2 B $979 MM $7.3 MM $278 MM Woodbridge Crossing ◦Building/Land & BPP ◦Over $94 MM Sales Woodbridge Centre ◦Building/Land & BPP ◦Nearly $31 MM Sales ◦Wdbg Pkwy Extension 544 Gateway Property Hwy 78 & Brown Street Wylie Logistics Park $84 MM $540K/Year $1.88 MM/Year $47 MM $302K/Year $618K/Year $976,000 Downtown Revitalization ◦Brown & 78 Redevelopment –Infrastructure Installation ◦TxDOT Median Improvements / Decel Lane Installation ◦UP -Plan/Install Additional Parking ◦Birmingham & Jefferson –Road Extension ◦Assist with Drainage and Throughfare Designs ◦Explore the Creation of a Long-term Planning Committee 544 Gateway, Alanis, and Regency Business Park Properties ◦Market/Sell of Wylie EDC Properties ◦Water/Sewer –Infrastructure Installation ◦Atmos Gas –Extension and Installation Hwy 78 Developments ◦Partner with CP & KCS for Wylie Logistics Park Update Engineering, Install Infrastructure, & Promotion ◦TxDOT Improvements –Median Improvements / Decel Lane Installation ◦Atmos Gas -Main Line Extension and Installation ◦Anson Pkwy & Wylie East Blvd. –Infrastructure Installation Expand/Promote BRE and Workforce Programs ◦Expand Relationships with Community Resource Partners Career Fair, Hiring Event, Seminars, Roundtables (HR, CEO, Community) ◦Grow MFG Day/Month, Workforce Luncheon, Networking Event ◦Expand/Promote Entrepreneurship and Small Business Assistance Programs Expand Training Opportunities & Enrichment Programs with the Chamber Grow #SmallBusinessWeek #EconDevWeek and our Entrepreneurs Event Wylie Economic Development Corporation Thank you Wylie Economic Development Corporation FY 2022 Annual Report January 24, 2023 2 Financial Condition The Wylie Economic Development Corporation (WEDC) places a priority on financial reporting each year. The WEDC Bylaws require that each year no later than January 31, a review of all expenditures, accomplishments, and expenditures other than direct economic development be presented to Council. At the end of each fiscal year, the WEDC undergoes an annual audit of its financial practices and transactions by a third-party firm chosen by the Wylie City Council and facilitated by the City of Wylie Finance Department. While the FY 2021-2022 audit has not been made public, the WEDC has not been notified of any discrepancies or irregularities. To ensure a greater opportunity for a ‘clean’ audit, WEDC staff works closely with the City of Wylie Finance Department throughout the year so that there is a complete understanding of all WEDC activities by Finance staff and the same can be more accurately documented and communicated to the auditors. The WEDC began the fiscal year with an anticipated fund balance of $1,050,844, and the audited fund balance was later adjusted up to $2,951,908. In FY 2022, sales tax receipts were up 9.28% over FY 2021 receipts with sales tax revenue totaling $4,161,282 of available WEDC revenue. Other revenues included rental income of $139,485, $1,545 from Miscellaneous Income, a reduction of $70,386 from the gain/loss sale of asset, and allocated interest of $33,804. Also, in FY 2022, the WEDC had $16,216,000 in Bank Note Proceeds. Total FY 2022 available operating funds totaled $20,481,730. Expenditures for WEDC operations were as follows: Personnel - $388,468, Administrative costs - $159,003, Marketing & Promotion activities - $182,181, Debt Service - $5,379,321, Land Acquisition - $4,136,097, Infrastructure Improvements/Utility Relocation - $1,716,509, Direct Business Incentives - $399,122, Payment to Taxing Units - $1,291, and $672,623 in Other expenses which included: engineering, surveys, flood/drainage studies, tree removal, environmental remediation on WEDC-owned properties, maintenance of WEDC-owned properties, demolition of a commercial structure located at 103 S Ballard, and demolition of residential structures at 410 E Brown, 502 E Brown, and 401 N Keefer. Included in the above Debt Service, the Hwy 78/Brown Loan and the Whirlpool Loan (544 Gateway) were both paid off following the finalization of the Series 2021 Note. The process of securing the funds was initiated in FY 2021, as the WEDC began to evaluate various options to refinance current debt and borrow additional funds for the acquisition of key properties. After reviewing proposals, the WEDC Board chose to engage the services of Government Capital Corporation for credit review, securing the compliance package, and beginning the generation of loan documents. WEDC Resolution 2021-02(R) was approved by the WEDC Board on September 15, 2021, and City Council ratification took place on September 28, 2021. On October 5, 2021, at the beginning of FY 22, the Series 2021 Note was funded, with loan terms of 240 months at 3.48% interest rate with a 5-year call restriction. With no additional principal reductions, the total expenditures for FY 2022 were $13,034,616. 3 By year end 2021, the outstanding debt associated with land acquisition was $4,883,290 and the FY 2022 Budget identified $1,009,263 in debt service. However, that number was updated with a Budget Amendment. The amendment was needed to realize the loan proceeds from WEDC Resolution 2021-02(R) and the Series 2021 Note that was funded on October 5, 2021. Revenues and expenses were adjusted via the Budget Amendment to reflect the receipt of additional revenue within Bank Note Proceeds and subsequent expenses within Principal/Interest, Land, and Special Services. This Budget Amendment was approved by the WEDC Board on 11-17-21 and ratified by City Council on 12-14-21. In June 2022, the WEDC staff began the process of evaluating options to borrow additional funds to finance the costs of construction for improvements to City infrastructure in order to promote economic development in the City of Wylie. WEDC Resolution 2022-01(R) was approved by the WEDC Board and ratified by City Council on July 12, 2022. On July 20, 2022, the Series 2022 Note was funded, with loan terms of 240 months at 4.8% interest rate with a 5-year call restriction. The updated debt service in the amount of $5,379,321 reflects the refinanced Series 2021 Note and principal and interest from the Series 2022 Note, with the total principal reductions of $5,041,124 and interest in the amount of $338,198. It is important to note that the WEDC Board may at its option prepay the principal amount of the Series 2021 Note in whole, or in part, on any payment date on or after November 5, 2026. Additionally, the WEDC Board may at its option prepay the principal amount of the Series 2022 Note in whole, or in part, on any payment date on or after August 20, 2027. With no additional principal reductions scheduled, the remaining principal balance at year end FY 2022 was $16,058,167. As shown above, in FY 2022 the WEDC had $399,122 in direct incentive payments. Within that figure, $154,549 was paid as part of ongoing sales tax reimbursement programs, $81,500 for industrial projects, and $163,073 for office/medical/general commercial. The WEDC also forgave a loan payment of $20,000 pertaining to the LUV-ROS land purchase. Of the incentive payments made, $126,140 represented either a one-time commitment or the final payment on a multi-year agreement. The WEDC owns and manages 48.2406 acres of land with 63,861 square feet of improvements at a cost basis of $16,620,961. In evaluating land which may be acquired, the WEDC Board of Directors assesses the sites’ potential for business park development, the need for a site to be redeveloped based upon the current state of aging improvements, and/or a strategic intervention to protect the property from development which may not reflect the highest and best uses for an identified area. The remaining debt associated with real estate at year end FY 2022 was $7,990,619. The FY 2023 WEDC Budget projects $8,180,146 in total revenues. Sales tax receipts, being the primary revenue source, are budgeted at $4,124,241, sale of WEDC property at $3,915,685, and rental income of $134,220. Total Expenses are budgeted at $16,143,686, with Land Purchases at $2,090,000, Infrastructure Projects at $8,375,000, Debt Service at $1,231,998, Personnel 4 $439,008, and Incentives $3,209,183. Within the Incentives budget, there are 14 ongoing projects and $300,000 set aside for Future Projects. Any additional incentive or infrastructure project not contemplated within the Budget and later approved by Council and the WEDC Board in FY 2023 will be funded from the end of year FY 2022 unallocated revenues equaling $10,747,516. A large portion of which will be allocated to the Brown & 78 Redevelopment Project and the 544 Gateway Redevelopment. As an ongoing performance indicator, staff tracks all commercial values as a percentage of the total assessed valuation (less value attributed to tax-exempt properties). In 2022, commercial and industrial properties were valued at $979MM, or 15.79% of the total $ 6.2B assessed valuation. Over the past five years, commercial and industrial values have increased by $278.5MM (39.74%). Over the same period, total valuation has increased by $3.2B, or a 68.73% increase. High-Impact Initiatives Woodbridge Parkway Corridor In 2014, the WEDC partnered with the City of Wylie, the City of Sachse, and Collin County to extend Woodbridge Parkway from Hensley Lane and provide direct access to State Highway 78. The WEDC borrowed $976,000 to fund Woodbridge Parkway and the final principal payment was made in FY 2021. The WEDC continues to fund a Sales Tax Reimbursement Agreement with Clark Street Development (owner/developer of Woodbridge Centre). In FY 2022, $154,548 was reimbursed to Clark Street. Including the infrastructure reimbursement of $100,000, the total incentive paid from July 2013 to the end of FY 2022 was $1,070,622. The remaining performance obligation at the end of FY 2022 was $29,378 and the obligation will be paid in full in mid-2023. To date, the center is generating $25MM in taxable sales on an annual basis. 544 Gateway Project In 2016, the WEDC and City began the process of assembling approximately 12 acres for redevelopment. Fronting FM 544 just west of Highway 78, the City acquired a 4.79-acre tract through a tax foreclosure that previously had EPA Superfund status. The remaining 7.42 acres were acquired by the WEDC from 2 property owners with frontage on FM 544 and Commerce Street. To date, the following tasks have been completed: receipt of a Ready for Reuse Certificate from EPA, removal of ±2 acres from the flood plain, creation of a Municipal Setting Designation, receipt of two Certificates of Completion via the Voluntary Cleanup Program from the TCEQ, demolition of dilapidated structures, relocation/expansion of previously existing tenant to Regency Business Park, and completion of significant fill and site work. 5 In early FY 2022, WEDC paid off the remaining balance associated with the acquisition of the WEDC-owned properties with the loan proceeds from the Series 2021 Note and purchased the 4.79-acre tract, formerly owned by the City Wylie for $3,000,000. Since the project’s inception, the WEDC has acquired 12.2 acres of land at $5.7MM and paid for the remediation, demolition, dirt work, and maintenance of the property. Additionally, in June 2022, the WEDC completed the extension of the water line from the east along FM 544. This project not only enhances service to the 12-acre tract but also loops the water system to the east along Cooper Drive to Highway 78. Jackson Street The WEDC continues to market its 1-acre property at the northeast corner of Jackson & Oak for an office and/or mixed-use development. While there has been little interest in a mixed-use vision originally proposed and contemplated, the WEDC has recently made progress on the concept. Back in 2017, the WEDC closed on a 0.26-acre tract near the northwest corner of Jackson & Oak after negotiating with the property owner for over 2 years. In February 2019, the WEDC sold the lot to Rocking M, LLC to develop a 3,200 square foot office building on the lot with the project receiving a Certificate of Occupancy in January 2020. The WEDC Board believed the office project will promote further investment in the downtown area and greatly complement the redevelopment of multiple residential structures into commercial uses. To enhance future development in the downtown area, the WEDC invested in additional parking and alleyway improvements along North Ballard and Jackson Streets. These investments totaled $280,000 for alleyways extending along Jackson between Oak & Marble and North Ballard between Jefferson & Brown. The FY 2023 Budget earmarks an additional $125,000 for this use with the WEDC currently negotiating with a local property owner to convert six separate lots to commercial uses. To complement the ever-growing need for parking, the WEDC has made it a priority to identify and facilitate the construction of additional parking in the downtown area within walking distance of the proposed mixed-use project and Ballard Street shopping district. The FY 2023 Budget earmarks $250,000 for this use with the WEDC currently negotiating with Union Pacific for additional parking along the railroad tracks. State Highway 78 & Brown In December 2018, City Council authorized the WEDC to start acquiring property in the area for this major Redevelopment Project. In early 2021, the WEDC acquired the last remaining commercial tract from TxDOT, a small strip of right-of-way, close to the intersection of Hwy 78 & Brown St. In the fall of 2021, the WEDC used the loan proceeds from the Series 2021 Note to pay off the $4,067,890 remaining balance associated with the acquisition of these WEDC properties. 6 In May 2020, the WEDC entered into a Development Agreement with the NTMWD for the relocation of the 42” water line. The $1.7MM project is in the final phase and is anticipated to wrap up in early-2023. In August 2020, the WEDC entered into an agreement with McClure Partners Construction Company for the 1.74-acre lot at the corner of Hwy 78 & Brown. The pending real estate agreement is tied to the completion of the water line relocation but will act as a catalyst project for the overall 11-acre redevelopment adjacent to Historic Downtown Wylie. State Highway 78 – Wylie Logistics Park Over the years, the WEDC has experienced great success in attracting investment and primary jobs via the development of business parks. Between the development of Premier Business Park, 544 Industrial Park, and Premier Business Park South, the WEDC facilitated the development of 862,000 square feet of new construction, over 800 new/retained jobs, and nearly $100MM in taxable value - on only 70 acres. Kansas City Southern’s $64MM David L. Starling Wylie Intermodal Terminal opened in 2015 and expanded in 2018. The KCS-owned Intermodal Terminal services 12 gulf ports and one Pacific Ocean port, as well as more than 140 transload centers and 11 intermodal ramps. This terminal serves as the hub of connectivity for rail as far north as Canada and as far south as Central America. With more than 6,000 track miles, KCS is one interchange away from all major markets in North America. In late 2021, Canadian Pacific Railway announced the completion of its acquisition of Kansas City Southern. The transaction was valued at approximately $31 billion. Upon obtaining control approval from the U.S. Surface Transportation Board (STB), the two companies expect to achieve full integration over the ensuing three years, unlocking the benefits of the combination. If approved, the merger will create the first truly North American Railroad. The US-Mexico-Canada rail network will connect Wylie to 128 million consumers in Mexico as well as 38 million consumers in Canada. FY 2022 Land Acquisitions The WEDC acquired six properties in FY 2022 including 802 W Kirby, 401 N Keefer, 104 S Ballard, 305 S Ballard, 200 W Brown, and a lot formerly owned by Union Pacific at Keefer/Brown. Performance Agreements & Infrastructure Reimbursement Ballers Elite - The Lab, LLC. Ballers Elite opened their 6,776 SF newly constructed facility on Martinez Ln in December 2021. Ballers Elite invested over $700,000 on the project over a 6-month period and the Agreement outlined a maximum qualified infrastructure reimbursement of $20,000. The Economic Impact Analysis (EIA) projects that the facility will generate approximately 7 $109,429 in overall tax revenue for the City of Wylie over a ten-year period. For every $1 that the WEDC invests, this business is investing $5.47 into our community. DW Wylie, LLC. DW Wylie, LLC opened its facility in the Spring of 2022 with two tenants, Chipotle and Texas Health Breeze Urgent Care. DW remodeled an existing 5,218 SF commercial building creating approximately 3,900 square feet of medical office space and 2,456 SF of restaurant space. The Agreement outlined a maximum qualified infrastructure reimbursement of $15,000, specifically for the construction of a $13,000 gas line needed for the facility. The Economic Impact Analysis (EIA) indicates that the project will generate an estimated $853,429 in overall tax revenue for the City of Wylie over a ten-year period. For every $1 that the WEDC invests, this business is investing $56.89 in our community. New Projects for FY 2022 Fuel City. In January 2022, the WEDC entered into an Agreement with Fuel City to construct a travel center consisting of a convenience store with fuel pumps and dining containing approximately 9,340 square feet of space, a covered outdoor dining area covering 770 square feet of space, and a car wash containing approximately 6,214 square feet of space. The Agreement outlined a reimbursement incentive of $500,000 for the installation of qualified infrastructure associated with the project. The Economic Impact Analysis (EIA) indicates that this project will generate an estimated $1.9MM in overall tax revenue for the City of Wylie over the next 10 years. For every $1 that the WEDC invests, this developer is investing $3.80 in our community. American Entitlements, LLC. In September 2022, the WEDC entered into a second Performance Agreement with American Entitlements to expand its downtown location by 1,300 SF at a construction cost of at least $200,000 and adding up to 35 new employees over the 40 added in the last Performance Agreement. As with the last Performance Agreement for American Entitlements, the Agreement is tied to job creation over the base employment of forty employees and will outline an incentive of $1,000 per new FTE position, with a maximum incentive of $36,000, payable over a three-year period. The Economic Impact Analysis (EIA) indicates that the project will generate approximately $272,490 in overall tax revenue for the City of Wylie over the next 10 years. For every $1 that the WEDC invests, this business is investing $7.78 in our community. BRE, Entrepreneurship, and Community Development The WEDC continued to focus its efforts on enhancing business growth and providing wide- ranging support for existing businesses in 2022. Special programs centered around nationally recognized initiatives such as Small Business Week, Manufacturing Day, Entrepreneurs Day, and National Apprenticeship Week. Educational and professional networking programs throughout the year included topic specific programs such as the HR Alliance program, Legislative Dinner, various educational programs like the monthly Lunch & Learn series, networking events, and the continuation of a holiday gift guide to encourage and support ‘shop local’ objectives. 8 As the City of Wylie grows closer to buildout, the Business Retention and Expansion program continues to expand its offerings to enhance business success and support existing businesses in our community. In 2022, as businesses more fully came out of COVID restrictions, employers were faced with the added challenge of attracting employees back into the workforce. To assist employers trying to attract high-demand trades, the Wylie EDC led a cross functional team in developing Registered Apprenticeship Programs (RAP) through the Department of Labor (DOL) registration process. The goal with these programs is to develop a workforce talent pipeline of certified skilled labor to meet the growing demand. The RAP identifies curriculum, on-the-job training requirements, and certifications for participants as well as pairing them with employers for apprenticeship training. Three (3) programs were certified by DOL in November and 2 additional programs are expected to certify in the Spring of 2023. To facilitate the earliest possible available workforce, in 2023 we will work closely with Wylie ISD and Collin College to develop and certify Pre-Apprenticeship programs that will be available to High School students to attain certifications and begin their on-the-job apprenticeship training prior to graduation. In the spring of 2022, the Wylie EDC expanded its newly launched Small Business Week program to focus citizen attention on Wylie’s strong and growing small business sector. The #IshopWylie initiative included a full week of targeted activities designed to highlight and support small and entrepreneurial businesses in the Wylie area. The Taste of Wylie event served 1,000 citizens and raised more than $22,000 for local food banks. Working with our community business associations like the Wylie Downtown Merchants and Chamber of Commerce, a variety of educational/networking events, and shopping experiences were implemented throughout the week- long program highlighting Wylie’s small and non-profit businesses. The challenges businesses faced during the Pandemic magnified businesses’ recognition of the important role a strong online social media presence plays in business success. While businesses may recognize the importance of their online presence, many struggle with a lack of knowledge to properly implement and track the effectiveness of these ever-evolving technology platforms. To address these needs, the Wylie EDC sponsored a unique pilot program called Social Media Rescue that provided social media experts to consult with and guide three small businesses to expand and grow their social media presence and, ultimately, their business revenues. The companies selected for the Fall program were JuztJAZ Boutique, Panaderia La Esperanza, and Wylie Flower and Gift. The program was so well received by the business community, the Wylie EDC has decided to sponsor six additional businesses this next spring. Since its launch in 2018, Manufacturing Day programs have expanded from a day long program to a month long program and, in 2022, the program expanded into November in order to accommodate the demand for student tours. This year, in addition to expanding the volume of student tours, we expanded to program to incorporate opportunities for the general public. Sanden International USA hosted citizen tours showcasing their high-tech operations within these facilities and demonstrating the inclusion of robotics, automation, and precision assembly workforce 9 employed in the advanced manufacturing industry. The event reached its tour capacity within days and seemed well received by the community. In November, a program supporting start-ups and small business was launched with the Wylie EDC hosting its first Entrepreneurs Expo. This Expo focused on identifying and supporting entrepreneurs in all stages of business. Whether the entrepreneur was considering starting a business, needed to take their growing business to the next level, or just needed to connect with resources to enhance their current business operations, the Expo provided something for everyone. The Expo was a success attracting more than 50 area entrepreneurs and more than 90 inquiries for more information about future events. Small businesses are the heart and soul of a thriving business community and the Wylie EDC is dedicated to providing the support and resources they need to succeed. Wrapping up the year strong, the Wylie EDC continued its Shop Local initiatives with the return of the Discover Wylie Gift Guide to support and promote local businesses. The Guide grew to include new retailers, non-profits and service businesses in 2022. Pairing this with the highly popular ‘Wylie Grinch’ social media campaign, Wylie citizens engaged with the entertaining video clips driving additional ‘Shop Local’ awareness this holiday season. 10 2023 Goals & Objectives Downtown Revitalization and Expansion • Brown & 78 Redevelopment - Infrastructure Installation - Mid 2023 • TxDOT - Median Improvements / Decel Lane Installation - Mid 2023 • UP - Plan/Install Additional Parking - TBD • Birmingham & Jefferson – Road Extensions - TBD • Assist with the Drainage and Thoroughfare Designs - Mid 2023 • Explore the Creation of a Long-term Planning Committee - Mid 2023 544 Gateway, Alanis and Regency Business Park Properties • Market/Sell WEDC Properties • Water/Sewer – Infrastructure Installation - Mid 2023 • Atmos Gas – Extension and Installation - Mid 2023 • Flood Study – Completion of RBP analysis - Mid 2023 Hwy 78 Developments (Eubanks to Wylie East) • Partner with CP & KCS for Wylie Logistics Park o Update Engineering, Install Infrastructure, & Promotion • TxDOT Improvements – Median Improvements / Decel Lanes Installation – 2023-2024 • Atmos Gas - Main Line Extension and Installation - Mid 2023 • Anson Pkwy & Wylie East Blvd. – Infrastructure Installation - Mid 2023 Expand/Promote BRE and Workforce Programs • Expand relationships with Community Resource Partners o Career Fair / Hiring Events / Seminars o HR Roundtable / CEO Roundtable / Community Roundtable • Grow MFG Day/Month o Expand Tour Options, Locations, and Hours for the General Public o Expand the Workforce Luncheon, MFG Dinner, and Networking Event • Expand/Promote Entrepreneurship and Small Business Assistance Programs o Expand Training & Enrichment Programs with the Chamber of Commerce o Grow Small Business Week Awareness and Promote EconDev Week o Grow the Entrepreneur Event Wylie City Council AGENDA REPORT Department: Finance Account Code: Prepared By: Melissa Brown Subject Consider, and act upon, acceptance of the Annual Comprehensive Financial Report (ACFR) for FY 2021 -22 following a presentation by the audit firm Weaver, LLP. Recommendation Motion to the Item as presented. Discussion The City Charter in Article VII, Municipal Finance, Section 13: Independent Audit, requires that at the end of the fiscal yea r an independent audit be made of all accounts of the City by a certified public accountant. In compliance with the City Charter, our outside auditor, Weaver LLP has performed an audit as of September 30, 2022. The goal of the audit is to provide reasonable assurance that the financial statements of the City are free of material misstatement. This is achieved through testing of accounting controls, internal controls, and compliance. There is also testing of significant accounting balances using a combination of vouching material transactions, sampling transactions, and applying analytical procedures. Interim Fieldwork for the audit began the week of August 29th and the final fieldwork was performed November 14th through December 9th. This is the third year for the audit to be performed by Weaver after their selection to continue as the City’s independent auditors following an RFP process completed in 2020. The 2022 audit is the fifteenth year for Weaver to perform our audit. Three RFP processes have been completed in that 15-year time period. In accordance with Financial Management Policies, audit partners have been rotated and audit managers and staff have changed frequently. This year’s audit was completed with a new manager and all new staff. Staff recommends acceptance of the Annual Comprehensive Financial Report (ACFR) as presented. 122 01/24/2023 Item 3. 123 01/24/2023 Item 3. CITY OF WYLIE, TEXAS ANNUAL COMPREHENSIVE FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2022 AS PREPARED BY THE FINANCE DEPARTMENT 124 01/24/2023 Item 3. 125 01/24/2023 Item 3. Exhibit Page I.INTRODUCTORY SECTION Letter of Transmittal i GFOA Certificate of Achievement vi Organizational Chart vii Principal Officials viii II.FINANCIAL SECTION Independent Auditor’s Report 1 A.MANAGEMENT'S DISCUSSION AND ANALYSIS 5 B.BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position A-1 15 Statement of Activities A-2 16 Fund Financial Statements Governmental Fund Financial Statements Balance Sheet A-3 18 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position A-4 20 Statement of Revenues, Expenditures, and Changes in Fund Balance A-5 21 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities A-6 22 Proprietary Fund Financial Statements Statement of Net Position A-7 24 Statement of Revenues, Expenses, and Changes in Fund Net Position A-8 26 Statement of Cash Flows A-9 27 Notes to the Basic Financial Statements 29 C.REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures, and Changes in Fund Balance- Budget (GAAP Basis) and Actual- General Fund A-10 64 Notes to Budgetary Comparison Schedule 66 Schedule of Changes in Net Pension Liability and Related Ratios - TMRS A-11 68 Schedule of Pension Contributions - TMRS A-12 70 Schedule of Changes in Total OPEB Liability and Related Ratios - TMRS A-13 72 Schedule of OPEB Contributions - TMRS A-14 73 D.COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Major Governmental Funds Budgetary Comparison Schedule - General Obligation Debt Service Fund A-15 75 TABLE OF CONTENTS CITY OF WYLIE, TEXAS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 126 01/24/2023 Item 3. TABLE OF CONTENTS – CONTINUED Exhibit Page Nonmajor Governmental Funds Combining Balance Sheet B-1 78 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance B-2 80 Nonmajor Special Revenue Funds Budgetary Comparison Schedules: 4B Sales Tax Revenue Fund C-1 82 Park Acquisition and Improvement C-2 83 Fire Training Center C-3 84 Fire Development Fees C-4 85 Municipal Court Technology Fund C-5 86 Municipal Court Building Security Fund C-6 87 Hotel Tax Fund C-7 88 Federal Seizure Fund C-8 89 Judicial Efficiency Fund C-9 90 Truancy Court Fund C-10 91 Municipal Judicial Fund C-11 92 Nonmajor Debt Service Funds Budgetary Comparison Schedules: 4B Debt Service 1996 Fund D-1 93 4B Debt Service 2005 Fund D-2 94 III.STATISTICAL SECTION Table Net Position By Component 1 98 Expenses, Program Revenues, and Net (Expense)/Revenue 2 100 General Revenues and Total Change in Net Position 3 102 Fund Balances of Governmental Funds 4 104 Changes in Fund Balances of Governmental Funds 5 106 Tax Revenues by Source, Governmental Funds 6 108 Assessed Value and Estimated Actual Value of Taxable Property 7 109 Direct and Overlapping Property Tax Rates 8 110 Principal Property Tax Payers 9 111 Property Tax Levies and Collections 10 112 Direct and Overlapping Sales Tax Rate 11 113 Taxable Sales by Category 12 114 Ratios of Outstanding Debt by Type 13 116 Ratios of General Bonded Debt Outstanding 14 118 Direct and Overlapping Governmental Activities Debt 15 119 Legal Debt Margin Information 16 120 Pledged-Revenue Coverage 17 122 Demographic and Economic Statistics 18 124 Principal Employers 19 126 Full-Time Equivalent Employees by Function/Program 20 127 Operating Indicators by Function/Program 21 128 Capital Asset Statistics by Function/Program 22 130 127 01/24/2023 Item 3. INTRODUCTORY SECTION 128 01/24/2023 Item 3. 129 01/24/2023 Item 3. Our Mission… …to be responsible stewards of the public trust, to strive for excellence in public service and to enhance the quality of life for all. i 300 Country Club Rd ∙ Wylie, Texas 75098 ∙ 972-516-6000 ∙ WylieTexas.gov January 24, 2023 The Honorable Matthew Porter, Mayor Members of the City Council And the Citizens City of Wylie, Texas Financial policies of the City of Wylie require that the City’s Finance Department prepare a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Accordingly, the Annual Comprehensive Financial Report (ACFR) for the City of Wylie, Texas for the fiscal year ended September 30, 2022, is hereby issued. This report consists of management’s representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making the representations, management of the City has established a comprehensive internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute assurance, that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City’s financial records have been audited by Weaver LLP, Certified Public Accountants, as required by the City Charter. This ACFR has been prepared based upon those audited records. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended September 30, 2022 are free of material misstatement. This independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended September 30, 2022, are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditor. Profile of the City The City of Wylie is located in the south-central portion of Collin County, approximately 23 miles northeast of downtown Dallas. Incorporated in 1887, the City adopted its Home Rule Charter on January 19, 1985 and operates under a council-manager form of government. The City Council is comprised of a Mayor and six council members. All members are elected at-large on a staggered and nonpartisan basis for three-year terms. They are responsible to enact local legislation, provide policy, and annually adopt the operating budget. They appoint the City Manager, City Attorney, Judge of the Municipal Court and members of various boards and 130 01/24/2023 Item 3. ii commissions. The City Manager, under the oversight of the City Council, is responsible for the proper administration of the daily operations of the City. The City provides a full range of municipal services including general government, public safety (police, fire, and emergency communications), streets, library, parks and recreation, planning and zoning, code enforcement, animal control, and water and sewer utilities. Sanitation services are provided by the City but are privately contracted. The Wylie Economic Development Corporation (WEDC) is included in the financial statements as a discrete component unit. Its purpose is to aid, promote and further economic development within the City. The Wylie Park and Recreation Facilities Development Corporation (4B Corporation) is also combined within the financial statements of the City. Both WEDC and the 4B Corporation are primarily funded with sales tax revenues. Both corporations are discussed more fully in the notes to the financial statements. The annual budget of the City serves as the foundation for its financial plan and control. The budget is proposed by the City Manager and adopted by the City Council in accordance with policies and procedures established by the City Charter, ordinances and state law. The budget process begins early in the year with a presentation to the council of a ten-year plan that incorporates current and future capital needs and allows for planning of future debt considerations and/or planning for General Fund fund balance drawdowns for one-time expenditures. A five-year plan is also presented so that property tax rate considerations may be analyzed with revenue and expenditure projections. The last several years, it has been a goal to maintain or lower the property tax rate so that Wylie remains at a competitive level with other area cities while still providing adequate revenue to fund the needs of our steady growth. Department budgets are reviewed by the City Manager who will develop a proposed budget for presentation to the City Council. The City Council reviews the budget in subsequent work sessions and a formal budget is prepared and made available to the public for review by August 5 each year or a date to be determined by the City Council. Prior to official adoption of the budget by Council, a public hearing on the proposed budget is held to allow for public input. Of the twenty-four governmental funds the City maintains, sixteen of them are annually appropriated. These include the General Fund, twelve Special Revenue Funds and the three Debt Service Funds. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Wylie operates. Local economy Suburbs continue to experience record growth across the region. In early 2022, Collin County was named the second fastest growing county in the US. In fact, Collin County saw the largest population growth in North Texas, increasing by over 100,000 people between 2016 and 2021. In the recent census, Collin and Rockwall Counties both grew by more than 36%, and Wylie outpaced them both with growth of 38% over the last decade. The recent data also showed that the DFW Metro Area grew by 20%, adding more than 1.2 million residents during the same time period. In early 2022, the DFW housing market was setting records with skyrocketing home prices and increasing construction starts. However, interest rates climbed throughout the year and the housing market had cooled off as 2022 came to a close. In the recent report by Texas Real Estate Research Center at Texas A&M and the North Texas Real Estate Information Systems, the DFW MSA’s single family home sales fell 30% and Collin County fell by 33% by year end. Even with the decreased sales, median sales prices remained up for the year. Year over year median sales prices for the DFW MSA remained up 10% and Collin County up 12%. Overall, Collin County single family sales prices averaged $590,504 with a median sales price of $514,000, making it the most expensive County in the region. While the housing market has cooled off, residential development is still accelerating in Eastern Collin County. Lavon has 7,452 home lots that are in varying stages of development just east of Wylie, along State Hwy 78, east of State Hwy 205. Additionally, residential growth in Wylie remained steady, ending the year at 410 new residential construction permits issued. Wylie’s population outpaced the previous year, increasing to 60,876, up 3.5% from 2021. 131 01/24/2023 Item 3. iii The DFW retail market continued its growth in 2022. According to a recent CBRE commercial report, DFW delivered 3.6 million square feet of commercial space in 2022, making it the largest recorded annual absorption since 2017. Wylie’s economy followed suit, with sales tax receipts topping $16.6 million, up nearly 7.4% from the previous year. Additional economic indicators remained strong, evidenced again with growth in the local tax base. Analyzing residential and commercial growth, our total tax base increased by 14.2% over the previous year. Our taxable value this year, as provided by the Collin Central Appraisal District, Dallas Central Appraisal District, and Rockwall Central Appraisal District, was $6,529,453,023. In 2021, DFW continued its record-breaking trend for new industrial construction and leasing, and 2022 proved to be no different. According to a recent CBRE industrial report, DFW has experienced 12 straight years of significant industrial growth. Q4 2022 actually marked the 49th consecutive quarter of positive net industrial absorption, and through four quarters the DFW metro area absorbed more than 36.4 million square feet and was only bested by the absorption total from the previous year which was 39.6 million square feet of industrial space. In 2021, KCS announced a possible $31 billion merger with Canadian Pacific. The proposed merger between CP and KCS will only further the discussions surrounding the 220-acre Wylie Logistics Park. Located at the KCS David L. Starling Wylie Intermodal Terminal, the future development will include roughly 2.4 million square feet of industrial product and provide a variety of employment opportunities here in Wylie. Wylie’s growing population, strengthening retail trade area, and increasing daytime population will continue to support a strong local economy well into the future. Long-term financial planning In 2006, the City developed a Long-Range Financial Plan that evolves with each budget cycle. The plan included street and park improvements, a new city hall, library, fire station, recreation center and sidewalks. The voters of the City of Wylie authorized the City to issue $73,950,000 in General Obligation Bonds to fund this capital improvement program. The first series of General Obligation bonds were sold in late March of 2006 and the remaining bonds were sold in August of 2008. Since that time the City has refunded these bonds to obtain more favorable interest rates without extending the life of the bonds. All of these projects have come to fruition and only $5 million remains unspent, but designated to help fund the expansion of Stone Road. Certificates of Obligation in the amount of $7,175,000 were sold in FY 2017 that provided funding for new capital assets in the City’s water storage and metering systems. In 2021, the City completed a long-awaited project of replacing the old metering system with Advanced Metering Infrastructure (AMI). This project is advantageous because it addresses aging infrastructure, improves water conservation and reduces unaccounted for water. The new meters automate meter-reading processes and provide more accurate information to the Utility Billing Department. More importantly, it has empowered our residents and business owners to manage their water use and costs with real-time data via the customer portal. The system has been a success and the Utility Billing Department still receives accolades for their successful transition and their high adoption rate for the online customer portal service. Partial funding of the Public Safety Building remodel and expansion was provided by Certificates of Obligation issued in 2018 for $8,500,000. This construction project was completed in FY2020 and re-opening of the building occurred in November 2020. Police, Fire Administration and Municipal Court are now serving the public in a much-anticipated new space which also includes our Emergency Operations Center. Construction of Fire Station #4 was completed and a grand opening ceremony was held in May 2022. The new facility includes office space, vehicle stalls, storm shelter and a training area. Along with the grand opening, the department also unveiled a sculpture commissioned in remembrance of the 343 firefighters who lost their lives on 9/11. The station was partially funded with $3 million previously transferred from the General Fund fund balance that was above the required minimum fund balance policy. The remaining portion of this project was funded with Certificates of Obligation issued early 2021 in the amount of $5.3 million. During FY2021, it was determined through a work session with City Council that it would be prudent to use a portion of the unassigned fund balance in the General Fund for specific capital needs. The unassigned fund balance had been above policy requirements for several years. As a result, in FY 2022 the Library received a new book sorter and the Fire Department purchased several LifePak Heart Monitors. Additionally, $6.2 million was transferred from the General Fund to a Community Investment Fund for a new Capital Improvement Program. This program will fund remodeling of the Senior Center ($750,000), construction of two water 132 01/24/2023 Item 3. iv splashpads ($1.3 million) and construction of a dog park ($700,000). Design for the Senior Center is still in the works, but the splashpads and dog park designs are complete and approved by council. Construction will begin early Spring 2023. $600,000 was assigned to repair neighborhood sidewalks and over $500,000 in repairs have been completed so far. $500,000 was allocated to improve storm drainage facilities and a study is underway to determine areas most in need of repair. It was also determined that Wylie Fire Rescue would use $2.4 million to purchase two quint replacements, both currently on order and being custom built. At a later work session, council assigned an additional $636,000 for the purchase of a fire utility truck which has also been ordered and expected to be delivered in 2023. Upon receipt of these new vehicles, the oldest front-line large vehicle for WFR’s fleet will be 2019, with two 2013 quints in reserve. In November 2021, voters approved $50.1 million of general obligation bonds which supports three propositions. These three propositions were based on input from a 14-member Citizens Bond Committee. The City Council reviewed and discussed recommendations and voted unanimously to put forth the following propositions: Proposition A - $35,100,000 Expansion and reconstruction of McMillen Dr., Park Blvd., and S. Ballard Ave./Sachse Rd. Proposition B - $10,000,000 City-wide street and alley repair/replacement Proposition C - $5,000,000 Improvements to Wylie’s Historic Downtown District Bonds will be issued as needed when projects are ready to move forward. In February 2022, the City issued $12.1 million of General Obligation Refunding & Improvement Bonds. This issue included refunding for the 2012 PPFCO and 2012 General Obligation Refunding Bonds. Both were refunded for a lower interest rate and the life of the bonds was not extended. $5.1 million was issued to begin work on the projects voted on in the 2021 election. Relevant financial policies Financial Management Policies are reviewed by staff and adopted annually by the City Council. There were no changes made upon adoption in Fiscal Year 2022. During Fiscal Year 2020, the City Council approved the Financial Management Policies with one significant change. Previously, the City was not required to rotate external auditors, only to circulate requests for proposals upon expiration of the contract. The new policy still does not require rotation of the audit firm, but does require rotation of the audit partner and audit manager after five consecutive years. The rest period for the partner is two years and the rest period for the manager is five years. The FY 2022 audit was completed with a new audit manager and new staff. Financial Management Policies state that, “It is the goal of the City to achieve and maintain an unassigned fund balance in the general fund equal to 25% of expenditures. The City considers a balance of less than 20% to be cause for concern, barring unusual or deliberate circumstances. If unassigned fund balance falls below the goal or has a deficiency, the City will appropriate funds in future budgets to replenish the fund balance based on a time table deemed adequate by the City Council.” Texas Government Code requires the governing body of an investing entity to review its’ investment policy not less than annually. The governing body must adopt a written instrument by rule, order, ordinance or resolution stating that it has reviewed the investment policy and that the written instrument so adopted shall record any changes made to the investment policy. City Council approved by Resolution the Investment Policy with no changes this year. City Council approved, for the first time in 2020, a separate Debt Management Policy. Previously, debt management was addressed only as a section of the Financial Management Policies and did not have any specific benchmarks of measure. The new policy establishes parameters and provides guidance governing the issuance, management, continuous evaluation of and reporting on all debit obligations issued by the City Council. 133 01/24/2023 Item 3. v Major initiatives The City Council worked together to continue efforts on their previously adopted mission, vision and values that are used for strategic planning purposes. The budget for Fiscal Year 2022-23 approved by the City Council reflected a decrease in the property tax rate of $0.081418 per $100 of assessed property valuation. This rate was the no new revenue tax rate and was the eleventh consecutive year the Council has decreased the tax rate. Awards and Acknowledgements Recognition Various awards came to the City throughout the year. Wylie Parks & Recreation received the TRAPS North Region Communications Award for “A Week in 30 Seconds” which is their way of communicating weekly recap videos in bite-sized portions of information to management, City Council and patrons. They also received Tree City USA designation for the 9th year in a row, as well as Better Cities for Pets designation. The Senior Recreation Center was recognized as ICAA Top 5 Best in Wellness Community Centers in America. Wylie Fire Rescue maintained their ISO 1 ranking by the property/casualty insurance industry. They also maintained the coveted designation of “Recognized Best Practices Fire Department'' from the Texas Fire Chiefs Association. The City of Wylie water system maintained its Superior Public Water System status with TCEQ. The Rita and Truett Smith Public Library earned the “Library of Excellence Award” by the Texas Municipal Library Directors Association. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The City also received from GFOA, the Distinguished Budget Presentation Award for our 2021-22 budget document. To earn recognition, budget documents must meet program criteria and excel as a policy document, financial plan, operations guide, and communication tool. The 2022-23 budget has also been submitted for eligibility of the award. The preparation of this report could not be accomplished without the dedicated services of the entire staff of the Finance Department. We would also like to express our appreciation to all staff members who assisted and contributed to the preparation of this report. Acknowledgement is also given to representatives of Weaver, LLP, Certified Public Accountants, for their dedicated assistance in producing this report. Special acknowledgement is given to the City Manager, Mayor and the members of the City Council for their support for maintaining the highest standards of professionalism in the management of the City of Wylie finances. Respectfully submitted, 134 01/24/2023 Item 3. vi Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Wylie Texas For its Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2021 Executive Director/CEO 135 01/24/2023 Item 3. Police Animal Control Fire Human Resources Public Information Office City Secretary FY 2022 CITY OF WYLIE ORGANIZATIONAL CHART City of Wylie Citizens Mayor And City Council Parks & Recreation Corporation Advisory Boards & Commissions Purchasing Wylie Economic Development Corporation City Attorney City Manager City Engineer Emergency Comm Assistant City Manager Planning GF Parks Code Enforcement Parks & Recreation Library 4B Parks Public Art Assistant City Manager Information Technology Streets Public Works Finance Utilities Water/Sewer Facilities Building Inspections Municipal Judge Recreation Utility Billing Municipal Court vii 136 01/24/2023 Item 3. CITY OF WYLIE, TEXAS PRINCIPAL OFFICIALS September 30, 2022 City Council Matthew Porter, Mayor Jeff Forrester, Mayor Pro Tem David R. Duke, Councilmember Dave Strang, Councilmember Scott Williams, Councilmember Dr. Timothy T. Wallis, Councilmember Garrett Mize, Councilmember City Staff Brent Parker, City Manager Renae’ Ollie, Deputy City Manager Lety Yanez, Assistant City Manager Stephanie Storm, City Secretary Melissa Brown, Finance Director Jennifer Beck, Human Resources Director Anthony Henderson, Police Chief Brandon Blythe, Fire Chief Tim Porter, City Engineer Thomas Weir, Public Works Director Carmen Powlen, Parks & Recreation Director Ofilia Barrera, Library Director Jason Greiner, WEDC Director Other Appointed Officials Weaver, LLP, Auditors Abernathy, Roeder, Boyd & Hullett, PC, City Attorney Norton Rose Fulbright US LLP, Bond Counsel Hilltop Securities Inc., Financial Advisors viii 137 01/24/2023 Item 3. FINANCIAL SECTION 138 01/24/2023 Item 3. 139 01/24/2023 Item 3. Weaver and Tidwell, L.L.P. 1406 Wilson Road, Suite 100 | Conroe, Texas 77304 Main: 936.756.8127 CPAs AND ADVISORS | WEAVER.COM Independent Auditor’s Report Members of the City Council City of Wylie, Texas Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Wylie, Texas (the “City”) as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of September 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As discussed in Note 1 to the basic financial statements, during the year ended September 30, 2022, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. Our opinions are not modified with respect to this matter. Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 140 01/24/2023 Item 3. Members of the City Council City of Wylie, Texas 2 In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information and pension and other postemployment benefits information as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to this required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 141 01/24/2023 Item 3. Members of the City Council City of Wylie, Texas 3 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund statements and schedules, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Included in the Annual Comprehensive Financial Report Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections, but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 18, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards the City’s internal control over financial reporting and compliance. WEAVER AND TIDWELL, L.L.P. Conroe, Texas January 18, 2023 142 01/24/2023 Item 3. 4 143 01/24/2023 Item 3. City of Wylie, Texas Management’s Discussion and Analysis September 30, 2022 5 As management of the City of Wylie, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended September 30, 2022. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages one through five of this report. Financial Highlights • The unassigned portion of the General Fund fund balance at the end of the year was $30,411,011 or 65.20 percent of total General Fund expenditures. This includes the 25% of General Fund expenditures which is required to be held in General Fund fund balance per the City Council approved Financial Management Policies. That amount is $11,661,548. The remainder represents funds which may be used for one-time expenditures or unforeseen needs which the Council allocates for a specific purpose. The unassigned General Fund fund balance can be seen on page 18 of this report on the Balance Sheet-Governmental Funds. It is part of the total General Fund fund balances, September 30, 2022, shown on page 21 of this report on the Statement of Revenues, Expenditures, and Changes in Fund Balance. • The assets and deferred outflows of the City exceeded its liabilities and deferred inflows at the close of the fiscal year ended September 30, 2022, by $313,515,288 (net position). Of this amount, $51,329,562 (unrestricted portion of net position) may be used to meet the government’s ongoing obligations to citizens and creditors. Included in the unrestricted portion of net position are monies from all the City’s various funds which are not restricted for other purposes. • Total assets were $418,897,391 which includes capital assets and current assets such as cash, prepaids, inventory, and receivables. Total liabilities were $105,170,427 which includes long-term liabilities from debt, compensated absences, pension liabilities, and OPEB liabilities and other liabilities such as accrued interest, accounts payables, unearned deposits and accrued liabilities. The statement of net position also includes deferred outflows and inflows from pension and OPEB liabilities along with deferred losses from refunding of debt. • The City’s total net position increased by $21,992,970 primarily due to developer contributions of over $6.7 million for streets, alleys, drainage and water/sewer infrastructure. Service charges for business type activities exceeding operating costs also contributed to the net position increase as well as an increase in sales and property tax receipts. Property tax receipts increased only by the additional tax of new construction. The effects of these changes can be seen in Table 2. • The City’s governmental funds reported combined ending fund balances of $66,208,112, an increase of $9,638,308 in comparison to the previous year. The General Fund ending balance was higher than 2021 by $0.4 million, while Capital Projects Funds increased by $7.7 million. Over $7 million was transferred to capital projects funds from the General Fund’s excess fund balance. $5.1 million was issued to begin projects designated in the 2021 bond program and $5 million was spent for construction of Fire Station #4. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of Wylie’s finances. This is done in a manner similar to a private- sector business. Two statements, the Statement of Net Position and the Statement of Activities, are utilized to provide this financial overview. 144 01/24/2023 Item 3. City of Wylie, Texas Management’s Discussion and Analysis September 30, 2022 6 The Statement of Net Position presents information on all of the City’s assets and deferred outflows of resources and liabilities and deferred inflows of resources with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flow. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide statements distinguish between governmental activities and business-type activities. Governmental activities basically account for those activities supported by taxes and intergovernmental revenues. On the other hand, business-type activities are basically supported by user fees and charges. Most City services are reported in governmental activities while business-type activities are reported in the Enterprise Fund. The government-wide statements include not only the City but also a discrete component unit, the Wylie Economic Development Corporation (WEDC). Although legally separate, WEDC is financially accountable to the City. Fund financial statements. The City, like other state and local governments, utilizes fund accounting to ensure and demonstrate compliance with finance-related legal requirements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains twenty-four individual governmental funds. Information is presented separately in the Governmental Fund Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances for the General Fund and the General Obligation Debt Service Fund. All Capital Projects Funds are combined for a single, aggregated presentation. Data from the other non-major funds are also combined and reported in a single column. Individual fund data for each of the non-major governmental funds is provided in the form of combining statements elsewhere in this report. Proprietary funds. The City maintains one type of proprietary fund, an enterprise fund. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses an enterprise fund to account for its water and sewer operations. Proprietary funds financial statements provide the same type of information as the government-wide financial statements, only in more detail. 145 01/24/2023 Item 3. City of Wylie, Texas Management’s Discussion and Analysis September 30, 2022 7 Notes to the financial statements. The notes provide additional information that is essential to gain a full understanding of the data provided in the government-wide and fund financial statements Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information. Required supplementary information can be found after the notes to the financial statements. Government-Wide Financial Analysis At the end of fiscal year 2022, the City’s net position (assets and deferred outflows of resources exceeding liabilities and deferred inflows of resources) totaled $313,515,288. This analysis focuses on the net position (Table 1) and changes in net position (Table 2). Net Position. The largest portion of the City’s net position, $222,304,283, or 70.9%, reflects its investment in capital assets (land, buildings, improvements other than buildings, machinery and equipment, construction in progress), less any related debt used to acquire those assets that is still outstanding. The City uses these assets to provide services to its citizens; consequently, these assets are not available for future spending. Although the City reports its capital assets net of related debt, the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City’s net position, $39,881,443, or 12.7% represents resources that are subject to external restrictions on how they may be used. The unrestricted portion of net position which is $51,329,562 (16.4%) may be used to meet the government’s ongoing obligations to citizens and creditors. 2022 2021 2022 2021 2022 2021 Current and other assets 78,143,603$ 65,059,977$ 46,207,233$ 40,897,985$ 124,350,836$ 105,957,962$ Capital assets 227,107,436 224,816,102 67,439,119 67,406,155 294,546,555 292,222,257 Total Assets 305,251,039 289,876,079 113,646,352 108,304,140 418,897,391 398,180,219 Deferred outflows of resources 5,231,159 5,889,254 396,049 470,539 5,627,208 6,359,793 Long term liabilities 79,917,759 86,719,945 12,983,984 14,537,295 92,901,743 101,257,240 Other liabilities 10,967,982 7,521,474 1,300,702 2,225,729 12,268,684 9,747,203 Total liabilities 90,885,741 94,241,419 14,284,686 16,763,024 105,170,427 111,004,443 Deferred inflows of resources 5,381,017 1,847,270 457,867 165,981 5,838,884 2,013,251 Net Position: Net investment in capital assets 165,022,233 163,767,912 57,282,050 56,032,882 222,304,283 219,800,794 Restricted for debt service 766,308 1,051,205 - - 766,308 1,051,205 Restricted for capital projects 19,085,639 8,622,371 12,100,734 11,072,169 31,186,373 19,694,540 Restricted for economic development 6,599,921 5,121,099 - - 6,599,921 5,121,099 Restricted for tourism 753,188 549,370 - - 753,188 549,370 Restricted for other 575,653 128,974 - - 575,653 128,974 Unrestricted 21,412,498 20,435,713 29,917,064 24,740,623 51,329,562 45,176,336 Total Net Position 214,215,440$ 199,676,644$ 99,299,848$ 91,845,674$ 313,515,288$ 291,522,318$ Business-type Activities Activities Total Table 1 Condensed Statement of Net Position Governmental 146 01/24/2023 Item 3. City of Wylie, Texas Management’s Discussion and Analysis September 30, 2022 8 Changes in Net Position Governmental Activities. Governmental activities increased the City’s net position by $14,538,796 from the prior year. This was primarily due to developer contributions of streets, alleys and drainage totaling $4,836,301. There also was a slight increase in ad valorem revenue from new residential construction and an increase in sales taxes due to favorable economic conditions. Business-type Activities. Net position from business-type activities increased by $7,454,174 from the prior year. Utility revenues from the growth of our customer base are partially responsible, as well as developer contributions for water and sewer infrastructure of approximately $1.9 million. Also contributing is a current year increase of $3 million in charges for services with current year operational expenses increasing by $1.8 million from the prior year. 2022 2021 2022 2021 2022 2021 Revenues: Program revenues: Charges for services 9,137,190$ 8,125,454$ 27,371,622$ 24,400,005$ 36,508,812$ 32,525,459$ Operating grants and contributions 663,356 730,139 - - 663,356 730,139 Capital grants and contributions 7,619,607 10,810,966 3,189,643 3,317,635 10,809,250 14,128,601 General revenues: Ad valorem taxes 36,723,108 35,629,027 - - 36,723,108 35,629,027 Sales taxes 12,951,476 11,832,404 - - 12,951,476 11,832,404 Other taxes and fees 2,929,590 2,675,866 - - 2,929,590 2,675,866 Interest 307,155 31,845 195,126 62,113 502,281 93,958 Gain (loss) disposal of capital assets 2,706,165 1,109 - - 2,706,165 1,109 Miscellaneous 610,600 276,181 63,359 150,213 673,959 426,394 Total revenues 73,648,247 70,112,991 30,819,750 27,929,966 104,467,997 98,042,957 Expenses: General government 13,682,957 12,690,079 - - 13,682,957 12,690,079 Public safety 25,164,617 23,478,532 - - 25,164,617 23,478,532 Urban development 1,020,885 1,121,650 - - 1,020,885 1,121,650 Streets 10,393,464 9,133,138 - - 10,393,464 9,133,138 Community service 9,217,814 9,309,304 - - 9,217,814 9,309,304 Interest on long-term debt 2,118,360 2,235,277 - - 2,118,360 2,235,277 Water and sewer operations - - 20,876,930 19,053,908 20,876,930 19,053,908 Total expenses 61,598,097 57,967,980 20,876,930 19,053,908 82,475,027 77,021,888 Increase in net position before transfers 12,050,150 12,145,011 9,942,820 8,876,058 21,992,970 21,021,069 Transfers 2,488,646 2,416,161 (2,488,646) (2,416,161) - - Increase in net position 14,538,796 14,561,172 7,454,174 6,459,897 21,992,970 21,021,069 Net position - October 1 199,676,644 185,115,472 91,845,674 85,385,777 291,522,318 270,501,249 Net position - September 30 214,215,440$ 199,676,644$ 99,299,848$ 91,845,674$ 313,515,288$ 291,522,318$ Table 2 Changes in Net Position Governmental Business-type Activities Activities Total Government-Wide Financial Analysis Governmental funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. 147 01/24/2023 Item 3. City of Wylie, Texas Management’s Discussion and Analysis September 30, 2022 9 As of the end of the current fiscal year, the City’s governmental funds reported combined fund balances of $66,208,112. The General Fund is the main operating fund of the City. At the end of the current fiscal year, unassigned fund balance was $30,411,011. The overall fund balance of the General Fund increased by $445,495 during the current fiscal year. The reason for the increase is multi-faceted. Overall, General Fund revenues were higher due to an increased property tax base (new construction), increased sales tax revenue and an expansion of the customer base for service fees, while expenditures were also less than anticipated. The General Obligation Debt Service Fund reported a decrease of $279,289 in fund balance. This was due in part to an application of the fund balance intentionally used to reduce the I&S portion of the tax rate. The Capital Projects Fund increased $7,692,339 due primarily to bonds that were issued to begin projects designated in the 2021 Bond Program, as well as $7 million transferred from the General Fund’s excess fund balance. Additionally, $5 million was spent for construction of Fire Station #4. Other governmental funds’ combined fund balances increased $1,779,763 primarily due to increased revenue from sales tax in the 4B Sales Tax Revenue Fund. Proprietary funds. The City’s proprietary funds provide the same type of information found in the government- wide statements, but in more detail. Unrestricted net position of the Utility Fund at the end of the year was $29,917,064. This represents an increase of $5,176,441. This is largely attributable to the increases in water and sewer operating revenues. The year included a planned rate increase, which is based on a five-year water and sewer rate study. There also was an increase in the system’s customer base. This year’s operating income was $6,845,087. General Fund Budgetary Highlights. In FY2022, the General Fund expenditure budget was increased by $4,154,441 over the 2021 budget, with approximately $1.5 million funding new personnel requests. Approved positions included two detention officers, a training coordinator, a part-time mental health coordinator, a part- time quartermaster and a part-time administrative assistant for the Police Department. The Fire Department had six new firefighter positions approved. A signal technician and equipment operator were approved for the Streets Department, a maintenance technician was approved for Facilities and a senior buyer position was approved for the Purchasing Department. There were also over $1.5 million of non-personnel requests that were funded. Highlights included eight Police patrol vehicle replacements, one Fire Division Chief vehicle replacement and one replacement vehicle for Streets. Also approved were tech upgrades for the Council Chambers, an outdoor warning siren replacement, one ambulance replacement, an asphalt roller, tennis court lighting, security for the Park Maintenance facility as well as other small equipment purchases for various departments. Each year the City performs a mid-year review of the budget. If the City Manager determines that funds are available, certain amendments are proposed to the City Council for their review and approval. Expenditures were amended throughout the year with the majority occurring during mid-year reviews. These amendments increased General Fund appropriations by $474,796 or 0.94 percent. In the General Fund, the actual revenue received in comparison to the final budget was over by $1,725,001. This positive variance is most noticeable in sales tax, service fees, and licenses and permits. General Fund expenditures had a final budget-to-actual positive variance of $4,301,772 prior to other financing sources/uses. This amount is attributable to intentional savings made by all departments, incomplete or postponed projects and personnel savings due to turnover and unfilled vacancies. Capital Assets and Debt Administration Capital Assets. The City’s investment in capital assets for its governmental and business-type activities as of September 30, 2022, amounts to $ 294,546,555(net of accumulated depreciation). The investment in capital assets includes land, buildings, improvements other than buildings, right-to-use machinery and equipment, machinery and equipment, and construction in progress. The total increase in the City’s investment in capital assets for the current year was $2,185,489 . 148 01/24/2023 Item 3. City of Wylie, Texas Management’s Discussion and Analysis September 30, 2022 10 2022 2021 2022 2021 2022 2021 Land 43,091$ 41,789$ 101$ 101$ 43,192$ 41,890$ Other non-depreciable assets 1,231 1,160 - - 1,231 1,160 Buildings 53,286 47,668 2,610 2,743 55,896 50,411 Improvements 118,499 122,346 62,634 63,133 181,133 185,479 Right-to-use machinery and equipment *79 139 - - 79 139 Machinery and equipment 6,242 5,143 1,111 1,139 7,353 6,282 Construction in progress 4,679 6,710 983 290 5,662 7,000 227,107$ 224,955$ 67,439$ 67,406$ 294,546$ 292,361$ * The 2021 balance has been restated to reflect the implementation of GASB Statement No. 87, Leases Asset Table 3 Capital Assets at Year-end Net of Accumulated Depreciation (000's) Governmental Activities Business-Type Activities Total Additional information on the City’s capital assets can be found in the notes to the financial statements on pages 42-43. Debt Administration. At the end of the current fiscal year, the City of Wylie had total bonded debt outstanding of $78.1 million, all of which is backed by the full faith and credit of the City. 2022 2021 2022 2021 2022 2021 General Obligation 50,250$ 51,020$ 2,295$ 2,725$ 52,545$ 53,745$ Combination Tax & Revenue 12,520 12,980 6,395 6,715 18,915 19,695 Contractual Obligations - 980 - - - 980 Unamortized premium (discount)6,168 6,035 473 548 6,641 6,583 Total 68,938$ 71,015$ 9,163$ 9,988$ 78,101$ 81,003$ Type of Debt Table 4 Outstanding Bonded Debt at Year End (000's) Governmental Activities Business-Type Activities Total Total bonded debt of the City decreased primarily due to principal payment of debt and amortization of premiums. The City continues to maintain favorable ratings from bond rating agencies. The current General Obligation, Combination Tax and Revenue Certificates of Obligation, and Revenue Bonds ratings are as follows. Moody’s Standard Investors Service & Poor’s General obligation bonds Aa1 AA Certificates of obligation Aa1 AA Revenue bonds A1 A+ Additional information on the City’s long-term debt can be found in the notes to the financial statements on pages 44-48. 149 01/24/2023 Item 3. City of Wylie, Texas Management’s Discussion and Analysis September 30, 2022 11 Economic Factors and Next Year’s Budgets and Rates During FY2022, 402 building permits were issued and 500 building permits are projected for FY2023. Steady growth is the predominant characteristic of the City with $171,511,500 of new assessed valuation added to the tax roll from new construction for FY2023. This value brought an additional $962,429 to the budget, allowing the City to maintain service levels while decreasing the average taxpayer’s burden. As steady growth continues, the upward trend in property values remains evident. The City’s Freeze-adjusted taxable property values showed an increase of 17.2% from FY2022 to FY2023. Our growth pattern is also projected to continue into FY2023 but the City recognizes that as we get closer to build-out, redevelopment will fuel the City’s growth of tax base. As is the City’s pattern, fiscal conservatism continues to play a major role in the development of the FY2023 operating budget. In FY2023, General Fund revenues and expenditures are budgeted to increase by 3.9% and 6.1% prior to other financing sources and transfers out, respectively, over FY2022 revenues and expenditures. This will provide a 42% estimated fund balance at FY2023 year-end, which exceeds the goal of 25%. FY2023 Utility Fund revenues are budgeted to increase by 3.3% from FY2022 revenues and expenses were projected to increase by 2.2% from FY2022. The City works with an independent firm to annually review water and sewer rates. The rates needed to fund current and future operating and infrastructure needs were identified. Also included in the study were estimated future water and sewer charges from North Texas Municipal Water District as well as future capital needs. Therefore, in the Utility Fund, water and sewer rates were adjusted for the FY2023 budget year in accordance with this study. During FY2006, voters authorized the City to issue $73,950,000 in bonds. $35,325,000 was issued in 2006 with the remaining $38,625,000 issued in 2008. The issuance of these bonds was expected to cause an increase in the I & S tax rate to cover the principal and interest payments on the additional debt. However, the total tax rate went unchanged from FY2009 through FY2012. FY2013 began the trend of a tax rate reduction and 2023 was the eleventh consecutive year the Council has decreased the tax rate. The current reduction was $.081418 bringing the eleven-year rate reduction total to $.336567. The current rate of $.562333 per $100 of assessed property valuation allows Wylie to be at a competitive level with other area cities while still providing adequate revenue to fund the needs of our growth. In November of 2021, voters authorized the City to issue $50,100,000 in bonds for expansion and reconstruction of three major roads: McMillen Drive, Park Boulevard and South Ballard Avenue/Sachse Road. The propositions also included city-wide street and alley repair/replacement as well as improvements to Wylie’s Historic Downtown District. Bonds will only be issued when projects are ready to proceed to minimize the impact on the I&S tax rate. $5.1 million was issued in FY 2022 and the additional debt was absorbed in the M&O rate instead of increasing the I&S. Requests for Information This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Department, 300 Country Club Road, Wylie, Texas, 75098. 150 01/24/2023 Item 3. 12 151 01/24/2023 Item 3. 13 BASIC FINANCIAL STATEMENTS 152 01/24/2023 Item 3. 14 153 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT A-1 STATEMENT OF NET POSITION SEPTEMBER 30, 2022 The accompanying notes to the basic financial statements are an integral part of this statement. 15 Primary Government Governmental Business-type Component ASSETS Activities Activities Total Unit Cash and cash equivalents 72,836,421$ 29,012,968$ 101,849,389$ 10,747,507$ Receivables (net of allowance for uncollectibles)5,057,275 4,792,686 9,849,961 812,707 Due from primary government - - - 279,047 Inventories 179,473 300,844 480,317 16,271,496 Prepaid items - - - 2,000 Restricted assets: Cash and cash equivalents 70,434 11,435,322 11,505,756 Receivables - 665,413 665,413 - Capital assets (net of accumulated depreciation): Land 43,090,692 101,045 43,191,737 - Other non-depreciable assets 1,231,294 - 1,231,294 - Construction in progress 4,678,918 982,791 5,661,709 - Buildings 53,286,232 2,610,242 55,896,474 - Improvement other than buildings 118,498,734 62,634,703 181,133,437 - Right-to-use machinery and equipment 79,177 - 79,177 - Machinery and equipment 6,242,389 1,110,338 7,352,727 - Total assets 305,251,039 113,646,352 418,897,391 28,112,757 DEFERRED OUTFLOWS OF RESOURCES Deferred loss on refunding 1,890,149 77,610 1,967,759 - Deferred outflows - pensions 3,174,471 302,820 3,477,291 64,720 Deferred outflows - OPEB 166,539 15,619 182,158 3,028 Total deferred outflows of resources 5,231,159 396,049 5,627,208 67,748 LIABILITIES Accounts payable and other current liabilities 3,443,132 929,448 4,372,580 158,396 Accrued interest payable 370,115 42,459 412,574 29,863 Due to component unit 279,047 - 279,047 Due to other governments 90,584 - 90,584 - Liabilities payable from restricted assets - 328,795 328,795 - Unearned revenue 6,785,104 - 6,785,104 - Non current liabilities: Due within one year 8,734,838 1,274,454 10,009,292 610,540 Due in more than one year 71,182,921 11,709,530 82,892,451 15,618,762 Total liabilities 90,885,741 14,284,686 105,170,427 16,417,561 DEFERRED INFLOWS OF RESOURCES Deferred inflows - pensions 5,330,095 453,137 5,783,232 83,874 Deferred inflows - OPEB 50,922 4,730 55,652 843 Total deferred inflows of resources 5,381,017 457,867 5,838,884 84,717 NET POSITION Net investment in capital assets 165,022,233 57,282,050 222,304,283 - Restricted for: Debt service 766,308 - 766,308 - Capital projects 19,085,639 12,100,734 31,186,373 - Economic development 6,599,921 - 6,599,921 - Tourism 753,188 - 753,188 - Other 575,653 - 575,653 - Unrestricted 21,412,498 29,917,064 51,329,562 11,678,227 Total net position 214,215,440$ 99,299,848$ 313,515,288$ 11,678,227$ 154 01/24/2023 Item 3. CITY OF WYLIE, TEXAS STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2022 The accompanying notes to the basic financial statements are an integral part of this statement. 16 Program Revenues Operating Capital Charges for Grants and Grants and Function/Programs Expenses Services Contributions Contributions Primary Government Governmental activities: General government 13,682,957$ 3,376,459$ -$ -$ Public safety 25,164,617 3,505,797 194,926 4,724 Urban development 1,020,885 1,727,784 - - Streets 10,393,464 - - 2,647,422 Community service 9,217,814 527,150 468,430 4,967,461 Interest on long-term debt 2,118,360 - - - Total governmental activities 61,598,097 9,137,190 663,356 7,619,607 Business-type activities: Utility 20,876,930 27,371,622 - 3,189,643 Total business-type activities 20,876,930 27,371,622 - 3,189,643 Total primary government 82,475,027$ 36,508,812$ 663,356$ 10,809,250$ Component unit: Wylie Economic Development Corp 3,940,768$ -$ -$ -$ Total component units 3,940,768$ -$ -$ -$ General revenues: Ad valorem taxes Sales taxes Franchise taxes Unrestricted investment earnings Miscellaneous income Gain on disposal of assets Transfers Total general revenues and transfers Change in net position Net position - Beginning of year Net position - Ending 155 01/24/2023 Item 3. EXHIBIT A-2 17 Governmental Business-type Component Activities Activities Total Unit (10,306,498)$ -$ (10,306,498)$ -$ (21,459,170) - (21,459,170) - 706,899 - 706,899 - (7,746,042) - (7,746,042) - (3,254,773) - (3,254,773) - (2,118,360) - (2,118,360) - (44,177,944) - (44,177,944) - - 9,684,335 9,684,335 - - 9,684,335 9,684,335 - (44,177,944)$ 9,684,335$ (34,493,609)$ -$ -$ -$ -$ (3,940,768)$ -$ -$ -$ (3,940,768)$ 36,723,108 - 36,723,108 - 12,951,476 - 12,951,476 4,161,282 2,929,590 - 2,929,590 - 307,155 195,126 502,281 33,804 610,600 63,359 673,959 420,077 2,706,165 - 2,706,165 - 2,488,646 (2,488,646)- - 58,716,740 (2,230,161) 56,486,579 4,615,163 14,538,796 7,454,174 21,992,970 674,395 199,676,644 91,845,674 291,522,318 11,003,832 214,215,440$ 99,299,848$ 313,515,288$ 11,678,227$ Net (Expense) Revenue and Changes in Net Position 156 01/24/2023 Item 3. CITY OF WYLIE, TEXAS BALANCE SHEET-GOVERNMENTAL FUNDS SEPTEMBER 30, 2022 The accompanying notes to the basic financial statements are an integral part of this statement. 18 General Fund General Obligation Debt Service ASSETS Cash and cash equivalents 37,816,021$ 837,815$ Receivables (net of allowance for uncollectibles): Ad valorem taxes 224,385 80,335 Franchise taxes 1,042,467 - Sales taxes 1,494,861 - Accounts 492,214 - Other 697,567 2,004 Restricted cash 70,434 - Inventories, at cost 179,473 - Total assets 42,017,422$ 920,154$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES: Accounts payable 1,559,550$ -$ Other payables and accruals 1,043,936 - Due to component unit 279,047 - Due to other governments 90,584 - Unearned revenue 6,099,649 - Total liabilities 9,072,766 - DEFERRED INFLOWS OF RESOURCES: Unavailable resources 1,260,396 77,228 Total deferred inflows of resources 1,260,396 77,228 FUND BALANCES: Nonspendable Inventory 179,473 - Restricted Debt service - 842,926 Capital projects - - Economic development - - Municipal court - - Tourism - - Law enforcement 499,218 - Committed Park acquisition and improvement - - Fire training - - Fire development - - Public arts 510,191 - Assigned Law enforcement 63,842 - Streets 20,525 - Unassigned 30,411,011 - Total fund balances 31,684,260 842,926 Total liabilities, deferred inflows of resources, and fund balances 42,017,422$ 920,154$ 157 01/24/2023 Item 3. EXHIBIT A-3 19 Capital Projects Fund Non major Governmental Funds Total Governmental Funds 25,483,143$ 8,699,442$ 72,836,421$ - - 304,720 - - 1,042,467 - 739,027 2,233,888 - - 492,214 - 284,415 983,986 - - 70,434 - - 179,473 25,483,143$ 9,722,884$ 78,143,603$ 338,633$ 73,761$ 1,971,944$ 344,488 82,764 1,471,188 - - 279,047 - - 90,584 511,697 173,758 6,785,104 1,194,818 330,283 10,597,867 - - 1,337,624 - - 1,337,624 - - 179,473 - 216,269 1,059,195 24,288,325 - 24,288,325 - 6,599,921 6,599,921 - 75,606 75,606 - 753,188 753,188 - 829 500,047 - 506,161 506,161 - 274,325 274,325 - 966,302 966,302 - - 510,191 - - 63,842 - - 20,525 - - 30,411,011 24,288,325 9,392,601 66,208,112 25,483,143$ 9,722,884$ 78,143,603$ 158 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT A-4 RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION SEPTEMBER 30, 2022 The accompanying notes to the basic financial statements are an integral part of this statement. 20 Total fund balance-governmental funds balance sheet 66,208,112$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not current financial resources and therefore are not reported in the governmental funds balance sheet.227,107,436 Deferred losses on refunding are reported as deferred outflows of resources in the government-wide statement of net position.1,890,149 Revenues earned but not available within sixty days of the fiscal year-end are not recognized as revenue in the fund financial statements.1,337,624 Deferred outflows of resources $3,174,471 related to the City's net pension liability result in an increase in net position in the government-wide financial statements while deferred inflows ($5,330,095) result in a decrease in net position.(2,155,624) Deferred outflows of resources $166,539 related to the City's net OPEB liability result in an increase in net position in the government-wide financial statements while deferred inflows ($50,922) result in a decrease in net position.115,617 Interest payable on long-term debt does not require current financial resources, therefore interest payable is not reported as a liability in the governmental funds balance sheet.(370,115) Long-term liabilities, including bonds payable, are not due and payable in the current period, and therefore are not reported in the fund financial statements.(79,917,759) NET POSITION OF GOVERNMENTAL ACTIVITIES - statement of net position 214,215,440$ 159 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT A-5 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 The accompanying notes to the basic financial statements are an integral part of this statement. 21 General Fund General Obligation Debt Service Capital Projects Fund Non major Governmental Funds Total Governmental Funds REVENUES Ad valorem taxes 28,048,745$ 8,660,744$ -$ -$ 36,709,489$ Sales taxes 8,373,812 - - 4,577,664 12,951,476 Franchise fees 2,897,152 - - - 2,897,152 Licenses and permits 1,350,938 - 803,709 37,863 2,192,510 Intergovernmental 2,759,195 - 1,843,713 - 4,602,908 Service fees 4,292,868 - - 807,835 5,100,703 Court fees 315,067 - - 17,142 332,209 Development fees - - - 317,734 317,734 Interest income 174,728 6,109 91,465 34,853 307,155 Miscellaneous income 526,831 - - 29,566 556,397 Total revenues 48,739,336 8,666,853 2,738,887 5,822,657 65,967,733 EXPENDITURES Current: General government 11,645,070 - - - 11,645,070 Public safety 25,434,629 - - 100,133 25,534,762 Urban development 1,052,931 - - - 1,052,931 Streets 3,563,540 - - - 3,563,540 Community service 4,950,022 - - 3,532,206 8,482,228 Capital outlay - - 7,557,044 - 7,557,044 Debt service: Principal - 6,345,000 - 345,000 6,690,000 Interest and fiscal charges - 2,524,725 - 38,625 2,563,350 Bond issuance costs - 74,169 47,654 - 121,823 Total expenditures 46,646,192 8,943,894 7,604,698 4,015,964 67,210,748 Excess (Deficiency) of revenues under expenditures 2,093,144 (277,041) (4,865,811) 1,806,693 (1,243,015) OTHER FINANCING SOURCES (USES) Transfers in 2,518,646 - 7,003,251 386,695 9,908,592 Transfers out (7,006,321) - - (413,625) (7,419,946) Proceeds from sale of property 2,706,165 - - - 2,706,165 Issuance of long-term debt - 6,770,000 5,235,000 - 12,005,000 Payment to refunded bond escrow agent - (7,558,830)- - (7,558,830) Premium on bonds issued - 786,582 319,899 - 1,106,481 Insurance recovery 133,861 - - - 133,861 Total other financing sources (uses)(1,647,649) (2,248) 12,558,150 (26,930) 10,881,323 Net change in fund balances 445,495 (279,289) 7,692,339 1,779,763 9,638,308 Fund balances October 1, 2021 31,238,765 1,122,215 16,595,986 7,612,838 56,569,804 Fund balances September 30, 2022 31,684,260$ 842,926$ 24,288,325$ 9,392,601$ 66,208,112$ 160 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT A-6 RECONCILIATON OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2022 The accompanying notes to the basic financial statements are an integral part of this statement. 22 Net change in fund balances- total governmental funds.9,638,308$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.8,209,117 Depreciation and amortization expense on capital assets is reported in the statement of activities but does not require the use of current financial resources. Therefore, depreciation and amortization expense is not reported as expenditures in the governmental funds.(10,892,893) The repayment of the principal of long term debt consumes the current financial resources of governmental funds, but has no effect on net position. The amortization of bond premiums and deferred gain/loss on refunding of long term debt is reported in statement of activities but does not require the use of current financial resources. Therefore, the effect of the amortization of these various items are not reported in the statement of revenues, expenses, and changes in fund balance. This amount represents the net effect of the following items: o Bonds issued ($12,005,000) o Premium on bonds issued ($1,106,481) o Refunded bonds, $7,525,000 o Prinicipal payments of $6,690,000 on bonds, $76,044 on financed purchases and $59,280 on leases o Amortization of premium on bonds of $973,603 and deferred loss on refunding of ($373,550) o Current year addition to deferred loss on refunding, $33,829 1,872,725 GASB 68 requires certain expenditures to be de-expended to account for the changes in pension liabilities and deferred inflows/outflows. There was a decrease in pension liabilities of $5,001,576, an increase in deferred inflows of ($3,531,149), and a decrease in deferred outflows of ($318,492).1,151,935 GASB 75 requires certain expenditures to be de-expended to account for the changes in OPEB liabilities and deferred inflows/outflows. There was an increase in OPEB liabilities of ($69,802), an increase in deferred inflows of ($2,598), and a decrease in deferred outflows of $118.(72,289) Current year changes in accrued interest payable does not require the use of current financial resources; and therefore, are not reported as expenditures in governmental funds.(5,376) Current year changes in the long-term liability for compensated absences do not require the use of current financial resources; and therefore, are not reported as expenditures in governmental funds.(203,218) Governmental funds do not recognize assets contributed by developers. However, in the statement of activities, the fair market value of those assets is recognized as revenue, then allocated over the useful life of the assets and reported as depreciation expense.4,836,301 Certain revenues in the government-wide statement of activities that do not provide current financial resources are not reported as revenue in the governmental funds.4,186 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES - statement of activities 14,538,796$ 161 01/24/2023 Item 3. 23 162 01/24/2023 Item 3. CITY OF WYLIE, TEXAS STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2022 The accompanying notes to the basic financial statements are an integral part of this statement. 24 Enterprise Fund Utility Fund ASSETS Current assets Cash and cash equivalents 29,012,968$ Accounts receivables (net of allowances for uncollectibles)4,359,493 Other receivables 433,193 Inventories, at cost 300,844 Restricted assets Cash and cash equivalents 11,435,322 Accounts receivable 665,413 Total current assets 46,207,233 Non-current assets Capital assets: Land 101,045 Buildings 3,956,303 Waterworks system 57,206,440 Sewer system 44,307,911 Machinery and equipment 3,173,792 Construction in progress 982,791 Accumulated depreciation (42,289,163) Total capital assets (net of accumulated depreciation)67,439,119 Total non-current assets 67,439,119 Total assets 113,646,352 DEFERRED OUTFLOWS OF RESOURCES Deferred loss on refunding 77,610 Pensions 302,820 OPEB 15,619 Total deferred outflows of resources 396,049 163 01/24/2023 Item 3. EXHIBIT A-7 25 Enterprise Fund Utility Fund LIABILITIES Current liabilities: Accounts payable 603,664$ Retainage payable 16,616 Other payables and accruals 309,168 Compensated absences payable - current 215,709 General obligation bonds payable - current 415,000 Combination bonds - tax and revenue - current 330,000 Capital lease - current 313,745 Accrued interest payable 42,459 Payable from restricted assets Customer deposits 328,795 Total current liabilities 2,575,156 Non-current liabilities: General obligation bonds payable 1,880,000 Combination bonds - tax and revenue 6,538,032 Capital lease 2,388,988 Net pension liability 837,039 OPEB 65,471 Total noncurrent liabilities 11,709,530 Total liabilities 14,284,686 DEFERRED INFLOWS OF RESOURCES Pensions 453,137 OPEB 4,730 Total deferred inflows of resources 457,867 NET POSITION Net investment in capital assets 57,282,050 Restricted for construction 12,100,734 Unrestricted 29,917,064 Total net position 99,299,848$ 164 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT A-8 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION – PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 The accompanying notes to the basic financial statements are an integral part of this statement. 26 Enterprise Fund Utility Fund OPERATING REVENUES Water 13,215,167$ Sewer 13,835,736 Penalties 217,675 Water taps 56,664 Sewer taps 13,580 Reconnect fees 32,800 Total operating revenues 27,371,622 OPERATING EXPENSES Water purchases 5,508,470 Sewer treatment 6,316,039 Utility administration 705,257 Water department 2,551,685 Sewer department 954,177 Utility billing 1,001,142 Engineering 148,738 Combined services 534,539 Depreciation 2,806,488 Total operating expenses 20,526,535 Operating income 6,845,087 NON-OPERATING REVENUES (EXPENSES) Investment revenue 195,126 Miscellaneous income 63,359 Interest expense (350,395) Total non-operating revenues (expenses)(91,910) Net income before transfers and contributions 6,753,177 TRANSFERS AND CONTRIBUTIONS Capital contributions 1,909,938 Impact fees 1,279,705 Transfers out (2,488,646) Total transfers and contributions 700,997 Change in net position 7,454,174 Net position, October 1 91,845,674 Net position, September 30 99,299,848$ 165 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT A-9 STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 27 Enterprise Fund Utility Fund CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 26,801,563$ Cash payments to employees for services (2,184,776) Cash payments to other suppliers for goods and services (16,417,400) Net cash provided by operating activities 8,199,387 CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES Transfers to other funds (2,488,646) Net cash used in non-capital financing activities (2,488,646) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal and interest paid (1,468,670) Acquisition or construction of capital assets (929,514) Water and sewer impact fee revenue 1,279,705 Net cash used in capital and related financing activities (1,118,479) CASH FLOWS FROM INVESTING ACTIVITIES Interest and dividends on investments 195,126 Net cash provided by investing activities 195,126 Net decrease in cash and cash equivalents 4,787,388 Cash and cash equivalents at beginning of year 35,660,902 Cash and cash equivalents at end of year 40,448,290$ RECONCILIATION TO STATEMENT OF NET POSITION Cash and cash equivalents 29,012,968$ Restricted cash and cash equivalents 11,435,322 Total cash and cash equivalents 40,448,290$ RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income 6,845,087$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense 2,806,488 Miscellaneous income 63,359 Pension and OPEB expense (448,572) Effects of changes in assets and liabilities: Decrease (increase) in receivables (654,034) Decrease (increase) in inventories (71,543) Decrease (increase) in restricted receivables 203,717 Decrease (increase) in deferred outflows for pensions and OPEB 58,487 Increase(decrease) in deferred inflows for pensions and OPEB 291,886 Increase (decrease) in accounts payable (1,005,060) Increase (decrease) in other payables and other accruals 61,495 Increase (decrease) in compensated absences 27,461 Increase (decrease) in customer deposits 20,616 Total adjustments 1,354,300 Net cash provided by operating activities 8,199,387$ NONCASH ITEMS Developer contributions of capital assets 1,909,938$ 166 01/24/2023 Item 3. 28 167 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 29 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Wylie (the City) was incorporated in 1887. The City operates under a Council-Manager form of government as a duly incorporated home rule city as authorized under the constitution of the State of Texas, and provides the following services: public safety (police and fire), streets, water, sewer and sanitation, public improvements, culture, planning and zoning, parks and recreation, and general administrative services. The City reports in accordance with accounting principles generally accepted in the United States of America (GAAP) as established by the Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB). The accounting and reporting framework and the more significant accounting principles and practices are discussed in subsequent sections of this Note. The remainder of the notes are organized to provide concise explanations, including required disclosures of budgetary matters, assets, liabilities, fund equity, revenues, expenditures/expenses, and other information considered important to gaining a clear picture of the City’s financial activities for the fiscal year ended September 30, 2022. A. Financial Statement Presentation The basic financial statements are prepared in conformity with GASB Statement No. 34, which requires the government-wide financial statements to be prepared using the accrual basis of accounting and the economic resources measurement focus. Government-wide financial statements do not provide information by fund, but distinguish between the City’s governmental activities, business-type activities and activities of its discretely presented component unit on the statement of net position and statement of activities. Significantly, the City’s statement of net position includes both noncurrent assets and noncurrent liabilities of the City. In addition, the government-wide statement of activities reflects depreciation expenses on the City’s capital assets, including infrastructure. In addition to the government-wide financial statements, the City has prepared fund financial statements, which use the modified accrual basis of accounting and the current financial resources measurement focus for the governmental funds. The accrual basis of accounting is utilized by proprietary funds. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The City also presents Management’s Discussion and Analysis, which includes an analytical overview of the City’s financial activities. In addition, a budgetary comparison statement is presented that compares the original adopted and final amended General Fund budget with actual results. B. Financial Reporting Entity The City's basic financial statements include the accounts of all City operations. In evaluating how to define the government for financial reporting purposes, management has considered all entities for which the City is considered to be financially accountable. The City is a home rule municipality governed by an elected Mayor and six-member City Council, who appoint a City Manager. As required by GAAP, these financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The discretely presented component unit is reported in a separate column in the combined financial statements to emphasize that it is legally separate from the City. 168 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 30 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED B. Financial Reporting Entity – Continued Blended Component Unit The Wylie Park and Recreation Facilities Development Corporation (“the 4B Corporation”) is presented in the basic financial statements as a blended component unit of the City. The 4B Corporation’s board is substantively the same as the City Council. All members of the 4B Corporation other than the board are City employees. The City Manager is the Chief Executive Operating Officer of the 4B Corporation. The purpose of the 4B Corporation, which is financed with a voter-approved half-cent sales tax, is to promote economic development within the City through the construction of park and recreation facilities. The 4B Corporation has a September 30 year-end. The 4B Corporation’s financial budget, treasury, and personnel functions are totally integrated with the City’s (thus the City has operational responsibility for the 4B Corporation). All of the 4B Corporation’s financial information is presented in the basic and combining financial statements along with the notes to these financial statements. The 4B Corporation does not issue separate financial statements. Discretely Presented Component Unit The Wylie Economic Development Corporation (WEDC) is a discretely presented component unit in the combined financial statements. The governing body of the WEDC is appointed by the City Council and the WEDC’s operating budget is subject to approval of the City Council. The WEDC’s board is not substantially the same as the City Council. The purpose of the WEDC, which is financed with a voter-approved half-cent City sales tax, is to aid, promote and further the economic development within the City. The WEDC is presented as a governmental fund type and has a September 30 year-end. Under a contract with the WEDC, the financial, budget, treasury and personnel functions of the WEDC are integrated with the City. All of WEDC’s financial information is presented in the combined and combining financial statements along with the notes to these financial statements. There are no separately issued financial statements of the WEDC. C. Government-Wide and Fund Financial Statements The basic financial statements include both government-wide (based on the City as a whole) and fund financial statements. The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely on fees and charges for support. Additionally, the primary government is reported separately from the legally separate component unit for which the primary government is financially accountable. The government-wide statement of activities demonstrates the degree to which the direct expenses of a functional category (Public Safety, Urban Development, etc.) or program are offset by program revenues. Direct expenses are those that are clearly identifiable with specific function or program. Program revenues include: a) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or program, b) grants and contributions that are restricted to meeting the operational requirements of a particular function or program, or c) grants and contributions that are restricted to meeting the capital requirements of a particular function or program. Taxes and other items not properly included among program revenues are reported instead as general revenues. Internally dedicated resources are also reported as general revenues rather than as program revenues. 169 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 31 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED C. Government-Wide and Fund Financial Statements – Continued Separate fund financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The major governmental funds are the general fund, the general obligation debt service fund, and the capital projects fund. GASB Statement No. 34 sets forth minimum criteria (percentage of assets, liabilities, revenues or expenditures/expenses of either fund category for the governmental and enterprise combined) for the determination of major funds. The non-major funds are combined in a column in the fund financial statements. The non-major funds are detailed in the combining section of the financial statements. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Interfund services provided and used are not eliminated in the process of consolidation. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed. D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The government-wide and proprietary fund financial statements follow the accounting set forth by the Governmental Accounting Standards Board. Governmental fund level financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. The governmental fund financial statements follow the accounting set forth by the Governmental Accounting Standards Board. Property taxes, franchise fees, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Sales taxes collected and held by the State and merchants at year-end on behalf of the City are also recognized as revenue. All other revenue items are considered to be measurable and available only when cash is received by the government. 170 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 32 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation – Continued Fund Accounting The following major funds are used by the City: 1. Governmental Funds: Governmental Funds are those through which most governmental functions of the City are financed. The acquisition, use and balances of the City's expendable financial resources and the related liabilities (except those accounted for in proprietary funds) are accounted for through governmental funds. The measurement focus is on determination of changes in financial position, rather than on net income determination. The following is a description of the major Governmental Funds of the City: a. The General Fund is the operating fund of the City. This fund is used to account for all financial resources not accounted for in other funds. All general tax revenues and other receipts that are not restricted by law or contractual agreement to some other fund are accounted for in this fund. General operating expenditures, fixed charges and capital improvement costs that are not paid through other funds are paid from the General Fund. b. The General Obligation Debt Service Fund is used to account for the accumulation of financial resources for the payment of principal, interest and related costs on general obligation long-term debt paid from taxes levied by the City. c. The Capital Projects Fund is used to account for the acquisition or construction of capital facilities, except those being financed by proprietary funds. In addition, the City reports the following non-major governmental funds. a. 4B Sales Tax Revenue Fund accounts for sales tax monies specifically designated for promoting economic development within the City by developing, implementing, providing and financing park and recreation projects. b. Parks Acquisition and Improvement Fund accounts for the development and improvement of City parks. c. Fire Training Center Fund accounts for First Responder fees specifically designated for the construction of the Fire Training Center. d. Fire Development Fees Fund accounts for contributions specifically designated for use of the fire department. e. Municipal Court Technology Fund accounts for court fines specifically designated for improvements in court technology. f. Municipal Court Building Security Fund accounts for court fines specifically designated for additions/improvements to court security. g. Hotel Tax Fund accounts for occupancy taxes charged to hotels. 171 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 33 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED D. Measurement Focus, Basis of Accounting, and Financial Statement Presentation – Continued h. Federal Seizure Fund accounts the City’s share of forfeiture proceeds at the federal level and is restricted for law enforcement additions/improvements only. i. Judicial Efficiency Fund accounts court fines specifically restricted to improving the efficiency of the administration of justice. j. Truancy Court Fund accounts for court fines designated for the efficiency of Juvenile Court truancy cases. k. Municipal Judicial Fund accounts for fines designated for efficiency of the municipal court. l. 4B Debt Service Funds account for the accumulation of resources to be used for the payment of principal and interest on the 4B Sales Tax Revenue Bonds – Series 1996 and 2005. Governmental funds with legally adopted annual budgets include the General Fund, the General Obligation Debt Service Fund, two (2) 4B Debt Service Funds, and all special revenue funds. 2. Proprietary Funds: Proprietary Funds are accounted for using an economic resources measurement focus. The accounting objectives are a determination of net income, financial position, and changes in cash flows. All assets and liabilities associated with a proprietary fund's activities are included on its statement of net position. The proprietary funds are financed and operated in a manner similar to private business enterprise. The costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis are financed or recovered primarily through user charges. Periodic determination of revenues earned, expenses incurred, or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. The following is a description of the major proprietary fund of the City: The Utility Fund is used to account for the operations of the water distribution system, wastewater pumping stations and collection systems. The City contracts with North Texas Municipal Water District for wastewater treatment. E. Cash and Cash Equivalents The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. State statutes authorize the City to invest in (1) obligations of the United States or its agencies and instrumentalities; (2) direct obligations of the State of Texas or its agencies; (3) other obligation, the principal of and interest on which are unconditionally guaranteed or insured by the State of Texas or the United States; (4) obligations of states, agencies, counties, cities, and other political subdivisions of any state having been rated as to investment quality by a nationally recognized investment rating firm and having received a rating of not less than A or its equivalent; (5) certificates of deposit by state and national banks domiciled in this state that are (A) guaranteed or insured by the Federal Deposit Insurance Corporation, or its successor; or (B) secured by obligations that are described by (1), pledged with third party selected or approved by the City, and placed through a primary government securities dealer. 172 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 34 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED E. Cash and Cash Equivalents - Continued Investments maturing within one year of date of purchase are stated at cost or amortized cost, all other investments are stated at fair value which is based on quoted market prices. F. Inventories and Prepaid Items Inventory is valued at cost (first-in, first-out). The cost of governmental fund type inventory is recorded as an expenditure when consumed rather than when purchased. Reported inventories are equally offset by non-spendable fund balance, which indicates that they do not constitute "available, spendable resources" even though they are a component of fund balance. The City is not required to maintain a minimum level of inventory. Inventories in the Proprietary Funds consist of supplies and are recorded at the lower of cost or market. Prepaid balances represent payments made by the City for which benefits extend beyond fiscal year-end, and non-spendable fund balance is reported to signify that a portion of fund balance is not available for other subsequent expenditures. G. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e. the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by non- spendable fund balance in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. All trade receivables are shown net of an allowance for uncollectibles. Trade accounts receivable in excess of 60 days comprise the trade accounts receivable allowance for uncollectibles. H. Restricted Assets Certain proceeds of enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants or contractual agreements. Customer deposits received for water and wastewater service are, by law, considered to be restricted assets. These balances are included in the Utility Fund. Certain deposits recorded in the general fund are restricted for investigative and other purposes. I. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business- type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $15,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. 173 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 35 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED I. Capital Assets – Continued Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Capital assets of the primary government, as well as the component units, are depreciated using the straight line method over the following estimated useful lives: Assets Years Buildings 20 - 30 Improvements other than buildings 20 - 50 Machinery and equipment 5 - 20 J. Compensated Absences It is the City’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. A percentage of accrued sick leave is payable on a longevity basis at the time of termination. All vacation and sick leave is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. K. Long-term Obligations In the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method, which approximates the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Losses on refunding are deferred and amortized over the life of the new issuance or the existing debt using the effective interest method. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. L. Pensions and Other Postemployment Benefits (OPEB) For purposes of measuring the net pension liability, pension related deferred outflows and inflows of resources and pension expense, City specific information about its Fiduciary Net Position in the Texas Municipal Retirement System (TMRS) and additions to/deductions from the City’s Fiduciary Net Position have been determined on the same basis as they are reported by TMRS. For this purpose, plan contributions are recognized in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 174 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 36 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED L. Pensions and Other Postemployment Benefits (OPEB)– Continued Information regarding the City’s Total Pension Liability and Total OPEB Liability is obtained from TMRS through reports prepared for the City by TMRS consulting actuary, Gabriel Roeder Smith & Company, in compliance with Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. M. Leases The City is a lessee for noncancellable leases of property and equipment. The City recognizes a lease liability, reported with long-term debt, and a right‐to‐use lease asset (lease asset), reported with other capital assets, in the government‐wide financial statements. The City recognizes lease liabilities with an initial, individual value of $5,000 or more. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight‐line basis over the shorter of the lease term or its useful life. Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments. • The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases. • The lease term includes the noncancellable period of the lease. • Lease payments included in the measurement of the lease liability are composed of fixed payments, variable payments fixed in substance or that depend on an index or a rate, purchase option price that the City is reasonably certain to exercise, lease incentives receivable from the lessor, and any other payments that are reasonably certain of being required based on an assessment of all relevant factors. The City monitors changes in circumstances that would require a remeasurement of its leases and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. N. Deferred Outflows/Inflows of Resources In addition to assets and liabilities, the statement of financial position and/or balance sheet will sometimes report a separate section for deferred outflows and deferred inflows of resources. Deferred outflows of resources represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has the following items that qualify for reporting as deferred outflows: Deferred Loss on Refunding – these deferred outflows result from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Pensions/ OPEB – these deferred outflows result from pension/OPEB contributions after the measurement date (deferred and recognized in the following fiscal year) and/or differences between expected and actual economic experience (amortized over the average remaining 175 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 37 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED N. Deferred Outflows/Inflows of Resources - continued service lives of the members). Deferred inflows of resources represent the acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow or resources (revenue) until that time. The City reports certain deferred inflows related to pensions and OPEB on the government-wide statement of position and unavailable tax revenues at the fund level. Deferred inflows related to differences between projected and actual investment earnings are amortized over a closed 5-year period. O. Fund Equity The City has adopted the provisions of GASB Statement No. 54, Fund Balance Reporting and Government Fund Type Definitions. The objective of the statement is to enhance the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing government fund type definitions. The statement establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. Fund balance classifications, under GASB 54 are Nonspendable, Restricted, Committed, Assigned, and Unassigned. These classifications reflect not only the nature of funds, but also provide clarity to the level of restriction placed upon fund balance. Fund balance can have different levels of constraint, such as external versus internal compliance requirements. Unassigned fund balance is a residual classification within the General Fund. The General Fund should be the only fund that reports a positive unassigned balance. In all other funds, unassigned is limited to negative residual fund balance. In accordance with GASB 54, the City classifies governmental fund balances as follows: Nonspendable fund balance – includes amounts that are not in a spendable form or are required to be maintained intact. (i.e. inventories, prepaid items) Restricted fund balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers either constitutionally or through enabling legislation (i.e. debt service, capital projects, economic development, municipal court security, municipal court technology, tourism). Committed fund balance – includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority (City Council). Commitments may be changed or lifted only by the government taking the same formal action (resolution) that imposed the constraint originally. (i.e. park acquisition and improvement, recreation, fire training, fire development, public arts). Assigned fund balance – comprises amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. The City Council has authorized the City Manager as the official authorized to assign fund balance to a specific purpose as approved by the fund balance policy. Assigned fund balance includes balances for streets, renovations, project for public safety buildings, and law enforcement. Restricted funds for law enforcement must be spent before assigned monies for law enforcement may be spent. 176 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 38 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED O. Fund Equity – Continued Unassigned fund balance – is the residual classification of the general fund and includes all amounts not contained in other classifications. Unassigned amounts are technically available for any purpose. The general fund is the only fund that reports a positive unassigned fund balance. In governmental funds other than the general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned balance in that fund. Order of Expenditure of Funds – When multiple categories of fund balance are available for expenditure, the City will start with the most restricted category and spend those funds first before moving down to the next category with available funds. Minimum General Fund Unassigned Fund Balance – It is the goal of the City to achieve and maintain an unassigned fund balance in the general fund equal to 25% of expenditures. The City considers a balance of less than 20% to be cause for concern, barring unusual or deliberate circumstances. If unassigned fund balance falls below the goal or has a deficiency, the City will appropriate funds in future budgets to replenish the fund balance based on a time table deemed adequate by the City Council. Net Position – In the statement of net position, the amount of net position restricted for other consists of the following as of September 30, 2022: Municipal court 75,606$ Law enforcement 500,047 Total 575,653$ P. Adoption of New Accounting Standards During fiscal year 2022, the City adopted GASB Statement No. 87, Leases (GASB 87), which establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under GASB 87, a lessee is required to recognize a lease liability and an intangible right-to-use asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. Implementation of GASB 87 resulted in no impact to the City’s beginning fund balance/net position. Q. Subsequent Events The City has evaluated all events or transactions that occurred after September 30, 2022 up through January 18, 2023, the date the financial statements were issued. NOTE 2. CASH AND INVESTMENTS At year end, the carrying amount of the City’s deposits was $92,438,095 and the bank balance was $93,726,317. All of the bank balances were covered by Federal deposit insurance and collateralized by the pledging financial institution’s City’s safekeeping account at the Federal Reserve or held by a third party custodian. The custodian serves contractually as the City’s agent. 177 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 39 NOTE 2. CASH AND INVESTMENTS – CONTINUED Cash and investments as of September 30, 2022 consist of and are classified in the accompanying financial statements as follows: Statement of net position: Primary Government Cash and cash equivalents 101,849,389$ Restricted cash and cash equivalents 11,505,756 Total Primary Government 113,355,145 Component Unit Cash and cash equivalents 10,747,507 Total cash and investments 124,102,652$ Cash on hand 103,128$ Deposits with financial institution 92,438,095 Investments 31,561,429 Total cash and investments 124,102,652$ The table below identifies the investment types that are authorized for the City by the Public Funds Investment Act. (Government Code Chapter 2256) The table also identifies certain provisions of the City’s investment policy that address interest rate risk, credit risk, and concentration of credit risk. Maximum Maximum Authorized Maximum Percentage Investment Investment Type Maturity of Portfolio In One Issuer U.S. Treasury obligations 5 years 100%None U.S. Agency obligations 5 years 100%None Certificates of deposit 18 months 25%None Direct repurchase agreements 2 years 100%None Investment pools 90 days None None Disclosures relating to interest rate risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. In accordance with its investment policy, the City manages its exposure to declines in fair value by limiting the weighted average maturity of its portfolio to less than three years. 178 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 40 NOTE 2. CASH AND INVESTMENTS – CONTINUED Disclosures relating to interest rate risk – Continued As of September 30, 2022, the City had the following investments: Weighted Average Amount Maturity TexPool 15,509,437$ 25 Days TexStar 16,051,992 16 Days 31,561,429$ Investment Type Disclosures relating to credit risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the Public Funds Investment Act, the City’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type. Minimum Rating as Legal of Year Amount Rating End TexPool 15,509,437$ N/A AAA-m TexStar 16,051,992 N/A AAA-m 31,561,429$ Investment Type Concentration of credit risk The City’s investment policy does not allow for an investment in any one issuer (other than investment pools) that is in excess of five percent of the fair value of the City’s total investments. Custodial credit risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The Public Funds Investment Act does not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The Public Funds Investment Act requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The fair value of the pledged securities in the collateral pool must equal at least the bank balance less the FDIC insurance at all times. 179 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 41 NOTE 2. CASH AND INVESTMENTS – CONTINUED Custodial credit risk – Continued The City requires all deposits to be covered by Federal Depository Insurance Corporation (FDIC) insurance and/or collateralized by qualified securities pledged by the City’s depository in the City’s name and held by the depository’s agent. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. GASB Statement No. 72, Fair Value Measurement and Application provides a framework for measuring fair value which establishes a three-level fair value hierarchy that describes the inputs that are used to measure assets and liabilities. • Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets that a government can access at the measurement date. • Level 2 inputs are inputs—other than quoted prices included within Level 1—that are observable for an asset or liability, either directly or indirectly. • Level 3 inputs are unobservable inputs for an asset or liability. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. If a price for an identical asset or liability is not observable, a government should measure fair value using another valuation technique that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs. If the fair value of an asset or a liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement. The City has no recurring fair value measurements. As of September 30, 2022 the City deposits with financial institutions in excess of federal depository insurance limits were fully collateralized. The City is a voluntary participant in TexPool. The State Comptroller of Public Accounts exercises responsibility over TexPool. Oversight includes the ability to significantly influence operations, designation of management, and accountability for fiscal matters. Additionally, the State Comptroller has established an advisory board composed of both participants in TexPool and other persons who do not have a business relationship with TexPool. TexPool operates in a manner consistent with the SEC’s Rule2A7 of the Investment Company Act of 1940. TexPool uses amortized cost rather than the fair value to report net assets to compute share prices. Accordingly, the fair value of the position in TexPool is the same as the value of TexPool shares. There are no significant limitations or restrictions on participant withdrawals. TexStar is administered by First Southwest Asset Management, Inc. and JPMorgan Chase. Together these organizations bring to the TexStar program the powerful partnership of two leaders in financial services with a proven and noted track record in local government investment pool management. TexStar is a local government investment pool created under the Interlocal Cooperation Act specifically tailored to meet Texas state and local government investment objectives of preservation of principal, daily liquidity, and competitive yield. TexStar uses amortized costs rather than fair value to report net position to compute share prices. Accordingly, the fair value of the position in TexStar is the same as the value of TexStar shares. There are no significant limitations or restrictions on participant withdrawals. 180 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 42 NOTE 3. PROPERTY TAXES The City’s property tax is levied each October 1 on the assessed value listed as of the prior January 1 for all real and certain personal property located within the City. Appraised values are established by the Collin County Central Appraisal District at 100% of estimated market value and certified by the Appraisal Review Board. The assessed value upon which the tax year 2021 levy was based was $5,348,871,238. Taxes are due on October 1 and are delinquent after the following January 31. The City is permitted by Article XI, Section 5 of the State of Texas Constitution to levy taxes up to $2.50 per $100 of assessed valuation for general governmental services, including the payment of principal and interest on general obligation long-term debt. The combined tax rate to finance general governmental services including the payment of principal and interest on long-term debt for the year ended September 30, 2022 was $0.643751 per $100 of assessed valuation. In Texas, countywide central appraisal districts are required to assess all property within the appraisal district on the basis of 100% of its appraised value and are prohibited from applying any assessment ratios. The value of property within the appraisal district must be reviewed every five years; however, the City may, at its own expense, require annual reviews of appraised values. The City may challenge appraised values established by the appraisal district through various appeals and, if necessary, legal action. Under this legislation, the City continues to set tax rates on City property. However, if the no new revenue tax rate, excluding tax rates for bonds and other contractual obligations, adjusted for new improvements, exceeds the rate for the previous year by more than 3.5%, it triggers an automatic election to determine whether to limit the tax rate to no more than 3.5% above the tax rate of the previous year. NOTE 4. RECEIVABLES Year-end receivables balances for the City’s individual major funds and nonmajor funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Business-Type Governmental Funds General General Obligation Debt Service Non Major Governmental Funds Total Utility Receivables Property taxes 306,732$ 112,301$ -$ 419,033$ -$ Franchise taxes 1,042,467 - - 1,042,467 - Sales taxes 1,494,861 - 739,027 2,233,888 - Accounts 786,598 - - 786,598 6,200,437 Other 740,811 2,004 284,415 1,027,230 433,193 Gross receivables 4,371,469 114,305 1,023,442 5,509,216 6,633,630 Less: allowance (419,975) (31,966) - (451,941) (1,840,944) Net total receivables 3,951,494$ 82,339$ 1,023,442$ 5,057,275$ 4,792,686$ Governmental Activities The Enterprise Fund accounts receivable balance includes unbilled charges for services rendered of $2,523,358 at September 30, 2022. Receivables in the discretely presented component unit consist of $739,027 of sales taxes receivable due from the State, $40,000 in loans receivable from private businesses and $33,680 of miscellaneous receivables. If certain contractual obligations are met by some of these private businesses at a future date, a portion and/or all of the amounts owed from the private businesses may be forgiven. 181 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 43 NOTE 5. CAPITAL ASSETS Capital asset activity for the year ended September 30, 2022 was as follows: Primary Government Beginning Ending Balance Increases Decreases Transfers Balance Governmental activities: Capital assets not being depreciated/amortized: Land 41,788,808$ 1,301,884$ -$ -$ 43,090,692$ Other non-depreciable assets 1,160,294 71,000 - - 1,231,294 Construction in progress 6,710,211 5,851,039 - (7,882,332) 4,678,918 Total capital assets, not being depreciated/amortized 49,659,313 7,223,923 - (7,882,332) 49,000,904 Capital assets being depreciated/amortized: Buildings 66,025,822 - - 7,882,332 73,908,154 Improvements other than buildings 228,655,168 3,838,075 - - 232,493,243 Right-to-use asset - machinery and equipment *138,809 - - - 138,809 Machinery and equipment 17,564,875 1,983,420 - - 19,548,295 Total capital assets being depreciated/amortized 312,384,674 5,821,495 - 7,882,332 326,088,501 Less accumulated depreciation/amortization for: Buildings (18,358,326) (2,263,596) - - (20,621,922) Improvements other than buildings (106,309,242) (7,685,267) - - (113,994,509) Right-to-use asset - machinery and equipment - (59,632) - - (59,632) Machinery and equipment (12,421,508) (884,398) - - (13,305,906) Total accumulated depreciation/amortization (137,089,076) (10,892,893) - - (147,981,969) Total capital assets being depreciated/amortized, net 175,295,598 (5,071,398) - 7,882,332 178,106,532 Governmental activities capital assets, net 224,954,911$ 2,152,525$ -$ -$ 227,107,436$ * Beginning balance has been restated to reflect implementation of GASB Statement No. 87, Leases Beginning Ending Balance Increases Decreases Transfers Balance Business-type activities: Capital assets not being depreciated: Land 101,045$ -$ -$ -$ 101,045$ Construction in progress 290,139 692,652 - - 982,791 Total capital assets, not being depreciated 391,184 692,652 - - 1,083,836 Capital assets being depreciated: Buildings 3,956,303 - - - 3,956,303 Water system 56,336,589 869,851 - - 57,206,440 Sewer system 43,233,161 1,074,750 - - 44,307,911 Machinery and equipment 2,971,593 202,199 - - 3,173,792 Total capital assets being depreciated 106,497,646 2,146,800 - - 108,644,446 Less accumulated depreciation for: Buildings (1,213,350) (132,711) - - (1,346,061) Water system (18,648,558) (1,376,993) - - (20,025,551) Sewer system (17,787,994) (1,066,103) - - (18,854,097) Machinery and equipment (1,832,773) (230,681) - - (2,063,454) Total accumulated depreciation (39,482,675) (2,806,488) - - (42,289,163) Total capital assets being depreciated, net 67,014,971 (659,688) - - 66,355,283 Business-type activities capital assets, net 67,406,155$ 32,964$ -$ -$ 67,439,119$ 182 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 44 NOTE 5. CAPITAL ASSETS – CONTINUED Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General government 2,433,189$ Public safety 829,860 Streets 6,036,602 Community service 1,593,242 Total depreciation/amortization expense - governmental activities 10,892,893$ Business-type activities: Water and Sewer 2,806,488$ Construction Commitments The City has active construction projects as of September 30, 2022. The projects include construction, park improvements, and drainage improvements. Commitments for construction in progress are composed of the following: Project Funding Source Project Budget Appropriation Spent-to-date Remaining Commitment McMillen Road (A), (C), (D)26,890,000$ 2,317,793$ 24,572,207$ Stone Road Phase 3 (A), (C), (D)14,800,000 658,286 14,141,714 Park Boulevard (A), (C), (D)12,000,000 37,318 11,962,682 Eubanks Road (E), (G)2,011,000 485,784 1,525,216 Dog Park & Splash Pads (B)2,000,000 112,055 1,887,945 Brown House Improvements (I)101,000 94,093 6,907 Ballard Elevated Storage Tanks (G), (H)5,260,000 566,474 4,693,526 Pump Generators (F)1,342,000 247,896 1,094,104 Total 64,404,000$ 4,519,699$ 59,884,301$ (A) General Obligation Bonds (D) Future Bonds Issuances (G) Impact Fees (B) GFFB Community Investment (E) NTMWD Interlocal Agreement (H) Certificates of Obligation (C) County Proceeds (F) Utility Fund Revenue (I) Hotel Occupancy Tax 183 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 45 NOTE 6. TRANSFERS AND INTERFUND RECEIVABLES AND PAYABLES Transfers are used to provide funds for debt service, contributions for capital construction, cost allocations and other operational costs as determined by the City’s annual budget. Transfers between funds during the year were as follows: Transfer In Transfer Out Amount Purpose General fund Utility fund 2,488,646$ From utility fund to cover indirect costs associated with utility fund operations General fund Nonmajor governmental funds 30,000 From hotel tax fund to cover costs associated with City events Capital projects fund General fund 7,003,251 For capital projects associated withcommunity investment and infrastructure Nonmajor governmental funds General fund 3,070 From general fund to support the purchase of public safety equipment Nonmajor governmental funds Nonmajor governmental funds 383,625 To 4B debt service fund to cover annual debt service payments and park improvements Total 9,908,592$ NOTE 7. UNEARNED REVENUE/DEFERRED INFLOWS OF RESOURCES Governmental funds report deferred inflows of resources in connection with receivables for revenue that is not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned (unearned revenue). At the end of the current fiscal year, the various components of unearned revenue and deferred inflows of resources reported in the governmental funds were as follows: General Non major General Obligation Capital Governmental Fund Debt Service Projects Fund Funds Total Deferred inflows of resources: Property taxes 225,904$ 77,228$ -$ -$ 303,132$ Court fines 177,607 - - - 177,607 Franchise fees 856,885 - - - 856,885 Total 1,260,396$ 77,228$ -$ -$ 1,337,624$ Unearned revenue: Advance construction payment -$ -$ 511,697$ -$ 511,697$ Grant funding 6,099,649 - - - 6,099,649 Recreation center memberships - - - 173,758 173,758 Total 6,099,649$ -$ 511,697$ 173,758$ 6,785,104$ 184 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 46 NOTE 8. LONG-TERM DEBT General Obligation Bonds, Combination Tax and Revenue Bonds, Financed Purchases Payable and Leases The City of Wylie issues general obligation bonds and combination tax and revenue bonds and enters into financed purchase and lease agreements to provide funds for the acquisition and construction of major capital facilities and equipment. Financed purchase agreements have been entered into for equipment purchased for governmental activities and for a water meter project for business-type activities. These issues are direct obligations and pledge the full faith and credit of the City. Final Interest Business- General Obligation Bonds Maturity Rates Governmental Type $7,400,000 Series 2013 Refunding 2029 1.50 - 3.00%2,390,000 - $21,240,000 Series 2015 Refunding 2027 2.00 - 5.00%12,035,000 - $34,250,000 Series 2016 Refunding 2028 2.00 - 5.00%19,565,000 2,295,000 $4,855,000 Series 2021 Refunding 2028 3.00 - 4.00%4,255,000 - $12,005,000 Series 2022 2042 3.00 - 4.00%12,005,000 - Refunding Total General Obligation Bonds 50,250,000$ 2,295,000$ 185 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 47 NOTE 8. LONG-TERM DEBT – CONTINUED General Obligation Bonds, Combination Tax and Revenue Bonds, Financed Purchases Payable and Leases- Continued Final Interest Business- Combination Tax and Revenue Bonds Maturity Rates Governmental Type $7,175,000 Series 2017 Improvements 2025 2.00 - 4.00%-$ 6,395,000$ $8,500,000 Series 2018 Improvements 2038 1.75 - 3.375%7,340,000 - $5,310,000 Series 2021 Improvements 2041 1.50 - 4.00%5,180,000 - Total Combination Tax and Revenue Bonds 12,520,000$ 6,395,000$ During 2022, the City issued $12,005,000 of General Obligation Refunding and Improvement Bonds, Series 2022. $7,558,830 of the proceeds will be used for various capital projects in the City. $5,500,000 of the proceeds were placed in an irrevocable trust and will be used to refund $905,000 of Public Property Finance Contractual Obligations, Series 2012, and $6,620,000 of General Obligation Refunding Bonds, Series 2012. The refunding produced a debt service savings of $565,633 which resulted in an economic gain of $504,869. Financed Purchases The City reports one financed purchase outstanding for governmental activities used to acquire public safety equipment. The City entered into a financed purchase agreement on November 12, 2019 for $384,243 at an interest rate of 3.85% to acquire equipment with principal and interest payments of $85,170 due on September 15 starting in 2020 and ending in 2024. The carrying value of the assets acquired through financed purchases by governmental activities at September 30, 2022 was $349,403. Business type activities reports a $3,333,667 financed purchase agreement entered into on June 30, 2020 for the City’s meter replacement project. Principal and interest payments of $370,597 are due on March 1 starting in 2021 until 2030. The carrying amount of the assets acquired through financed purchases by business-type activities at September 30, 2022 was $3,250,382. Final Interest Business- Financed Purchases Maturity Rates Governmental Type Watchguard Law Enforcement Equipment 2024 3.85%160,983$ -$ Meter Project Replacement 2030 2.10%- 2,702,733 Total Financed Purchases 160,983$ 2,702,733$ Leases The City has entered into lease agreements as a lessee. The leases allow the right to use copiers and postage machines over the term of the leases. The City is required to make monthly payments at its incremental borrowing rate or the interest rate stated or implied within the leases. The lease rate, term and ending balance are as follows: 186 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 48 NOTE 8. LONG-TERM DEBT – CONTINUED General Obligation Bonds, Combination Tax and Revenue Bonds, Financed Purchases Payable and Leases- Continued Final Interest Liability at Ending Governmental Activities - Leases Maturity Rate(s)Commencement Balance Copiers 2024 1.58%127,675$ 71,495$ Postage machine 2025 2.04%11,134 8,034 138,809$ 79,529$ Changes in Long-term Liabilities: A summary of long-term debt transactions, including current portion, for the year ended September 30, 2022, is as follows: Amount Beginning Ending Due within Balance Additions Reductions Balance One year Governmental activities: General obligation bonds 51,020,000$ 12,005,000$ (12,775,000)$ 50,250,000$ 6,640,000$ Combination tax and revenue bonds 12,980,000 - (460,000) 12,520,000 540,000 Contractual obligations 980,000 - (980,000) - - Unamortized bond premium 6,034,648 1,106,481 (973,603) 6,167,526 - Total bonds payable 71,014,648 13,111,481 (15,188,603) 68,937,526 7,180,000 Financed purchases payable 237,027 - (76,044) 160,983 78,971 Leases *138,809 - (59,280) 79,529 60,239 Compensated absences 2,796,147 1,962,422 (1,759,204) 2,999,365 1,415,628 OPEB liability 633,573 69,809 - 703,382 - Net pension liability 12,038,550 - (5,001,576) 7,036,974 - Total governmental activities 86,858,754$ 15,143,712$ (22,084,707)$ 79,917,759$ 8,734,838$ * Beginning balance has been restated to reflect implementation of GASB Statement No. 87, Leases Amount Beginning Ending Due within Balance Additions Reductions Balance One year Business-type activities: General obligation bonds 2,725,000$ -$ (430,000)$ 2,295,000$ 415,000$ Combination tax and revenue bonds 6,715,000 - (320,000) 6,395,000 330,000 Unamortized bond premium 547,861 - (74,829) 473,032 - Total bonds payable 9,987,861 - (824,829) 9,163,032 745,000 Financed purchases payable 3,010,104 - (307,371) 2,702,733 313,745 Compensated absences 188,248 184,110 (156,649) 215,709 215,709 OPEB liability 59,122 6,349 - 65,471 - Net pension liability 1,291,960 - (454,921) 837,039 - Total business-type activities 14,537,295$ 190,459$ (1,743,770)$ 12,983,984$ 1,274,454$ 187 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 49 NOTE 8. LONG-TERM DEBT – CONTINUED Changes in Long-term Liabilities - continued The annual aggregate maturities for each long-term liability type are as follows: General Obligation Bonds Fiscal Year Ending September 30,Principal Interest Total Principal Interest Total 2023 6,640,000$ 2,256,066$ 8,896,066$ 415,000$ 104,375$ 519,375$ 2024 7,020,000 1,773,025 8,793,025 435,000 83,125 518,125 2025 7,355,000 1,444,925 8,799,925 460,000 60,750 520,750 2026 7,325,000 1,107,050 8,432,050 480,000 37,250 517,250 2027 7,680,000 755,100 8,435,100 505,000 12,625 517,625 2028 - 2032 11,140,000 889,600 12,029,600 - - - 2033 - 2037 1,430,000 358,950 1,788,950 - - - 2038 - 2042 1,660,000 127,500 1,787,500 - - - Total 50,250,000$ 8,712,216$ 58,962,216$ 2,295,000$ 298,125$ 2,593,125$ Governmental Activities Business Activities Combination Tax and Revenue Bonds Fiscal Year Ending September 30,Principal Interest Total Principal Interest Total 2023 540,000$ 372,987$ 912,987$ 330,000$ 218,319$ 548,319$ 2024 560,000 350,987 910,987 340,000 204,919 544,919 2025 585,000 328,087 913,087 350,000 191,119 541,119 2026 605,000 304,287 909,287 360,000 176,919 536,919 2027 630,000 279,587 909,587 370,000 162,319 532,319 2028 - 2032 3,525,000 1,035,961 4,560,961 2,090,000 591,189 2,681,189 2033 - 2037 4,170,000 501,372 4,671,372 2,555,000 219,562 2,774,562 2038 - 2041 1,905,000 56,175 1,961,175 - - - Total 12,520,000$ 3,229,443$ 15,749,443$ 6,395,000$ 1,764,346$ 8,159,346$ Governmental Activities Business Activities Financed Purchases Fiscal Year Ending September 30,Principal Interest Total Principal Interest Total 2023 78,971$ 6,198$ 85,169$ 313,745$ 56,853$ 370,598$ 2024 82,012 3,157 85,169 320,345 50,253 370,598 2025 - - - 327,083 43,514 370,597 2026 - - - 333,963 36,634 370,597 2027 - - - 340,988 29,609 370,597 2028 - 2030 - - - 1,066,608 45,184 1,111,792 Total 160,983$ 9,355$ 170,338$ 2,702,732$ 262,047$ 2,964,779$ Governmental Activities Business Activities Leases Fiscal Year Ending September 30,Principal Interest Total Principal Interest Total 2023 60,239$ 857$ 61,096$ -$ -$ -$ 2024 17,648 104 17,752 - - - 2025 1,642 10 1,652 - - - Total 79,529$ 971$ 80,500$ -$ -$ -$ Governmental Activities Business Activities Compensated Absences Compensated absences represent the estimated liability for employees’ accrued sick and vacation leave for which employees are entitled to be paid upon termination. The retirement of this liability is typically paid from the General Fund and Enterprise Funds based on the assignment of an employee at termination. 188 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 50 NOTE 8. LONG-TERM DEBT – CONTINUED Net Pension Liability/ OPEB liability The general fund has typically been used to liquidate governmental activities’ pension and OPEB liabilities. Discretely Presented Component Unit – Wylie Economic Development Corporation (WEDC) The following is a summary of WEDC long-term transactions for the year ended September 30, 2022: Balance Balance Due Within Description 9/30/2021 Increases Decreases 9/30/2022 One Year Loans payable 4,883,291$ 16,216,000$ (5,041,124)$ 16,058,167$ 575,974$ Compensated Absences 32,301 29,181 (26,916) 34,566 34,566 OPEB liability 11,026 856 - 11,882 - Net pension liability 185,989 - (61,302) 124,687 - Total long-term liabilities 5,112,607$ 16,246,037$ (5,129,342)$ 16,229,302$ 610,540$ WEDC Loans Payable as of September 30, 2022 are as follows: Description Balance $300,000, payable to bank, made September 2016, payable in monthly installments of $3,109, including interest at 4.50%, through final payment in December 2026. 144,081$ $8,100,000, payable to bank, made October 2021, payable in monthly installments of $46,940 through October 2041, including interest at 3.48% 7,846,538 $8,100,000, payable to bank, made August 2022, payable in monthly installments of $52,617 through July 2042, including interest at 4.80% 8,067,548 16,058,167$ Annual debt service requirements to maturity for WEDC debt is: Year Principal Interest Total 2023 575,974$ 656,024$ 1,231,998$ 2024 600,096 631,902 1,231,998 2025 625,254 606,744 1,231,998 2026 651,493 580,504 1,231,997 2027 650,457 553,559 1,204,016 2028-2032 3,632,071 2,365,757 5,997,828 2033-2037 4,462,769 1,493,709 5,956,478 2038-2042 4,860,053 474,250 5,334,303 Total 16,058,167$ 7,362,449$ 23,420,616$ 189 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 51 NOTE 9. PENSION PLAN A. Plan Description The City participates as one of 866 plans in the nontraditional, joint contributory, hybrid defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent multiple-employer retirement system for municipal employees in the State of Texas. The TMRS Act places the general administration and management of the System with a six-member Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas. TMRS’ defined benefit pension plan is a tax- qualified plan under Section 401(a) of the Internal Revenue Code. TMRS issues a publicly available comprehensive annual financial report (CAFR) that can be obtained at www.tmrs.com. All eligible employees of the City are required to participate in TMRS. B. Benefits Provided TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. At retirement, the benefit is calculated as if the sum of the employee’s contributions, with interest, and the city-financed monetary credits with interest were used to purchase an annuity. Members may choose to receive their retirement benefit in one of seven payments options. Members may also choose to receive a portion of their benefit as a Partial Lump Sum Distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the member’s deposits and interest. At the date the plan began, the City granted monetary credits for service rendered before the plan began of a theoretical amount at least equal to two times what would have been contributed by the employee, with interest, prior to establishment of the plan. Monetary credits for service since the plan began are a percent (100%, 150%, or 200%) of the employee's accumulated contributions. In addition, the City can grant, as often as annually, another type of monetary credit referred to as an updated service credit which is a theoretical amount which, when added to the employee's accumulated contributions and the monetary credits for service since the plan began, would be the total monetary credits and employee contributions accumulated with interest if the current employee contribution rate and city matching percent had always been in existence and if the employee's salary had always been the average of his salary in the last three years that are one year before the effective date. At retirement, the benefit is calculated as if the sum of the employee's accumulated contributions with interest and the employer-financed monetary credits with interest were used to purchase an annuity. Members can retire at ages 60 and above with 5 or more years of service or with 20 years of service. A member is vested after 5 years. The plan provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS and within the actuarial constraints also in the statutes. 190 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 52 NOTE 9. PENSION PLAN – CONTINUED At the December 31, 2021 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 122 Inactive employees entitled to but not yet receiving benefits 217 Active employees 352 691 C. Contributions The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the city matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of the city. Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees for the City were required to contribute 7.0% of their annual gross earnings during the fiscal year. The contribution rates for the City were 15.50% and 15.39% in calendar years 2021 and 2022, respectively. The City’s contributions to TMRS for the year ended September 30, 2022 (including $43,652 of contributions by WEDC) were $3,958,173, and were equal to the required contributions. D. Net Pension Liability The City’s Net Pension Liability (NPL) was measured as of December 31, 2021 and the Total Pension Liability (TPL) used to calculate the NPL was determined by an actuarial valuation as of that date. Actuarial Assumptions: The Total Pension Liability in the December 31, 2021 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.50% per year Overall payroll growth 3.50% to 11.50% including inflation Investment Rate of Return 6.75%, net of pension plan investment expense, including inflation Actuarial cost method Entry Age Normal Amortization Method Level percentage of payroll; closed Salary increases were based on a service-related table. Mortality rates for post-retirement were based on the 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis with scale UMP. Mortality rates for pre-retirement were based on PUB(10) mortality tables, with the Public Safety table used for males and the General Employee table used for females. The rates are projected on a fully generational basis with scale UMP. 191 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 53 NOTE 9. PENSION PLAN – CONTINUED D. Net Pension Liability - Continued Actuarial assumptions used in the December 31, 2021 valuation were developed primarily from the actuarial investigation of the experience of TMRS over the four-year period from December 31, 2014 to December 31, 2018. They were first adopted in 2019 and first used in the December 31, 2019 actuarial valuation. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. In determining their best estimate of a recommended investment return assumption under the various alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic mean (aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive). The target allocation and best estimates of arithmetic real rates of return for each major asset class in fiscal year 2022 are summarized in the following table: Long-Term Expected Real Target Rate of Return Asset Class Allocation (Arithmetic) Global Equity 30.0%5.30% Core Fixed Income 10.0%1.25% Non-Core Fixed Income 20.0%4.14% Real Return 10.0%3.85% Real Estate 10.0%4.00% Absolute Return 10.0%3.48% Private Equity 10.0%7.75% Total 100.0% Discount Rate The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rates specified in statute. Based on that assumption, the pension plan’s Fiduciary Net Position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability. Allocations The City’s net pension liability, pension expense, and deferred outflows of resources related to TMRS have been allocated between governmental activities, business-type activities, and the discretely presented component unit using a contribution-based method. 192 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 54 NOTE 9. PENSION PLAN - CONTINUED D. Net Pension Liability – Continued Total Plan Net Pension Fiduciary Pension Liability Net Position Liability (a)(b)(a) - (b) Balance at 12/31/20 92,826,424$ 79,309,925$ 13,516,499$ Changes for the year: Service Cost 4,267,960 - 4,267,960 Interest 6,315,835 - 6,315,835 Change of benefit terms - - - Difference between expected and actual experience (439,930) - (439,930) Changes of assumptions - - - Contributions - employer - 3,678,159 (3,678,159) Contributions - employee - 1,668,335 (1,668,335) Net investment income - 10,362,682 (10,362,682) Benefit payments, including refunds of employee contributions (2,784,954) (2,784,954) - Administrative expense - (47,839) 47,839 Other changes - 327 (327) Net Changes 7,358,911 12,876,710 (5,517,799) Balance at 12/31/21 100,185,335$ 92,186,635$ 7,998,700$ Increase (Decrease) Changes in the Net Pension Liability Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City, calculated using the discount rate of 6.75%, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.75%) or 1 percentage-point higher (7.75%) than the current rate: 1% Decrease 1% Increase in Discount Discount in Discount Rate (5.75%)Rate (6.75%)Rate (7.75%) City 28,862,144$ 7,874,013$ 766,572$ WEDC 457,039 124,687 12,139 Total 29,319,183$ 7,998,700$ 778,711$ Pension Plan Fiduciary Net Position Detailed information about the pension plan’s Fiduciary Net Position is available in a separately-issued TMRS financial report. That report may be obtained at www.tmrs.com. 193 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 55 NOTE 9. PENSION PLAN – CONTINUED E. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended September 30, 2022, the City recognized pension expense of $2,649,669 (including $29,437 recognized by WEDC). At September 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Deferred Deferred Deferred Deferred Outflows of Inflows of Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Resources Resources Differences between expected and actual economic experience 446,332$ 555,224$ 8,307$ 8,052$ 454,639$ 563,276$ Changes in actuarial assumptions 177,412 - 3,302 - 180,714 - Difference between projected and actual investment earnings - 5,228,008 - 75,822 - 5,303,830 Contributions subsequent to the measurement date 2,853,547 - 53,111 - 2,906,658 - Total 3,477,291$ 5,783,232$ 64,720$ 83,874$ 3,542,011$ 5,867,106$ City WEDC Total The $2,906,658 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will reduce the net pension liability during the year ending September 30, 2023. The other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Fiscal Year Ended Sept. 30:City WEDC Total 2023 (825,006)$ (11,555)$ (836,561)$ 2024 (2,027,175) (28,393) (2,055,568) 2025 (1,177,642) (16,494) (1,194,136) 2026 (1,099,025) (15,393) (1,114,418) 2027 (30,640) (430) (31,070) Total (5,159,488)$ (72,265)$ (5,231,753)$ NOTE 10. OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN A. Plan Description Texas Municipal Retirement System (“TMRS”) administers a defined benefit group-term life insurance plan known as the Supplemental Death Benefits Fund (“SDBF”). This is a voluntary program in which participating member cities may elect, by ordinance, to provide group-term life insurance coverage for their active members, including or not including retirees. Employers may terminate coverage under and discontinue participation in the SDBF by adopting an ordinance before November 1 of any year to be effective the following January 1.The City has elected to participate in the SDBF for its active members including retirees. As the SDBF covers both active and retiree participants, with no segregation of assets, the SDBF is considered to be an unfunded single-employer OPEB plan (i.e. no assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75) for City reporting. 194 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 56 NOTE 10. OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN – CONTINUED B. Benefits Provided The death benefit for active employees provides a lump-sum payment approximately equal to the employee’s annual salary (calculated based on the employee’s actual earnings, for the 12-month period preceding the month of death). The death benefit for retirees is considered an other postemployment benefit (“OPEB”) and is a fixed amount of $7,500. At the December 31, 2021 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees currently receiving benefits 70 Inactive employees entitled to but not yet receiving benefits 37 Active employees 352 459 C. Contributions The member city contributes to the SDBF at a contractually required rate as determined by an annual actuarial valuation. The rate is equal to the cost of providing one-year term life insurance. The funding policy for the SDBF program is to assure that adequate resources are available to meet all death benefit payments for the upcoming year. The intent is not to pre-fund retiree term life insurance during employees’ entire careers. Contributions are made monthly based on the covered payroll of employee members of the participating member city. The contractually required contribution rate is determined annually for each city. The rate is based on the mortality and service experience of all employees covered by the SDBF and the demographics specific to the workforce of the city. There is a one-year delay between the actuarial valuation that serves as the basis for the employer contribution rate and the calendar year when the rate goes into effect. The funding policy of this plan is to assure that adequate resources are available to meet all death benefit payments for the upcoming year. The retiree portion of contribution rates to the SDBF for the City was 0.03% and 0.04% in calendar years 2021 and 2022, respectively. The City’s contributions to the SDBF for the year ended September 30, 2022 (including $106 of contributions by WEDC) were $2,580, and were equal to the required contributions. D. Total OPEB Liability The City’s Total OPEB Liability (TOL) was measured as of December 31, 2021 and was determined by an actuarial valuation as of that date. 195 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 57 NOTE 10. OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN – CONTINUED E. Actuarial Assumptions The Total OPEB Liability in the December 31, 2021 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.50% per year Salary increases 3.50% to 11.50% including inflation Discount rate 1.84% Retiree's share of benefit-related costs $0 Administrative expenses All administrative expenses are paid through the Pension Trust and accounted for under reporting requirements of GASB Statement No. 68. Mortality rates -service retirees 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis with scale UMP. Salary increases were based on a service-related table. Mortality rates for post-retirement were based on the 2019 Municipal Retirees of Texas Mortality Tables. The rates are projected on a fully generational basis by scale UMP. Actuarial assumptions used in the December 31, 2021 valuation were developed primarily from the actuarial experience study for the period from December 31, 2014 to December 31, 2018. The discount rate used to measure the Total OPEB Liability was 1.84% and was based on the Fidelity Index’s “20-Year Municipal GO AA Index” rate as of December 31, 2021. This was a 0.16% reduction from the 2.00% discount rate used in the December 31, 2020 valuation. F. Changes in Total OPEB Liability Total OPEB Liability Balance at 12/31/2020 703,721$ Changes for the year: Service Cost 57,192 Interest on Total OPEB Liability 14,575 Difference between expected and actual experience (14,293) Changes of assumptions or other inputs 26,689 Benefit payments (7,149) Net changes 77,014 Balance at 12/31/21 780,735$ Total OPEB Liability as a Percentage of Covered Payroll 3.28% 196 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 58 NOTE 10. OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN – CONTINUED G. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, calculated using the discount rate of 1.84%, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1 percentage-point lower (0.84%) or 1 percentage-point higher (2.84%) than the current rate: 1% Decrease 1% Increase in Discount Discount in Discount Rate (0.84%)Rate (1.84%)Rate (2.84%) City 861,711$ 768,853$ 562,194$ WEDC 13,317 11,882 8,688 Total OPEB Liability 875,028$ 780,735$ 570,882$ H. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended September 30, 2022, the City recognized OPEB expense of $92,685. At September 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Deferred Deferred Deferred Deferred Outflows of Inflows of Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Resources Resources Differences between expected and actual experience -$ 37,868$ -$ 574$ -$ 38,442$ Changes in assumptions and other inputs 174,778 17,784 2,905 269 177,683 18,053 Contributions subsequent to the measurement date 7,380 - 123 - 7,503 - Total 182,158$ 55,652$ 3,028$ 843$ 185,186$ 56,495$ City WEDC Total The $7,503 reported as deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date will reduce the Total OPEB liability during the year ending September 30, 2023. The other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Fiscal Year Ended Sept. 30:City WEDC Total 2023 20,562$ 356$ 20,918$ 2024 20,562 356 20,918 2025 20,562 356 20,918 2026 16,890 292 17,182 2027 21,251 368 21,619 Thereafter 19,299 334 19,633 Total 119,126$ 2,062$ 121,188$ 197 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 59 NOTE 11. NORTH TEXAS MUNICIPAL WATER DISTRICT The North Texas Municipal Water District (the District) is a conservation and reclamation district and political subdivision of the State of Texas, created and functioning under Chapter 62, Acts of 1951, 52nd Legislature, Regular Session, as amended, originally complied as Vernon’s Article 8270-141 (the Act), pursuant to Article 16, Section 59 of the Texas Constitution. The District comprises all of the territory of its member cities, viz., Allen, Garland, Princeton, Plano, Mesquite, Wylie, Rockwall, Farmersville, McKinney, Richardson, Forney and Royse City (the “Member Cities”). The District was created for the purpose of providing a source of water supply for municipal, domestic and industrial use and for the treatment processing and transportation of such water to its Member Cities and to its other customers located in North Central Texas, all within the Dallas Standard Metropolitan Statistical Area. Under the Act, including specifically Section 27 thereof, and under the Constitution and Statutes of the State of Texas, the District has broad powers to (1) impound, control, store, preserve, treat, transmit, and use storm and flood water, the water of rivers and streams and underground water, for irrigation, power and all other useful purposes and to supply water for municipal, domestic, power, industrial and commercial uses and purposes and all other beneficial uses and purposes; and (2) collect, transport, process, treat, dispose of, and control all municipal, domestic, industrial or commercial waste whether in fluid, solid or composite state, including specifically the control, abatement or reduction of all types of pollution. The City retains no ongoing financial interest equity investments and/or responsibilities for the District other than the contractual arrangements discussed more fully herein. NOTE 12. MUDDY CREEK REGIONAL WASTEWATER SYSTEM In May 1999, the Cities of Wylie and Murphy in Collin County entered into a contract with the District to provide for the acquisition, construction, improvement, operation, and maintenance of the Regional Muddy Creek Wastewater System (System) for the purpose of providing facilities to adequately receive, transport, treat, and dispose of wastewater. The District will own the System with Wylie and Murphy as the initial participants. The District will issue approximately $20 million in bonds to construct this new facility. Budget calculations for operating costs and debt service for the System on the service commencement date is based on the following estimated flow ratio: City of Wylie – 2/3 and Murphy – 1/3. “Service Commencement Date” means the first date upon which the System is available to treat wastewater from the participants. Wylie’s long-term commitment to the System’s debt service component is approximately $13.3 million. The District will send each participant a letter detailing the annual requirement necessary to operate the System each year. The annual requirement budget will include an operation and maintenance component and a bond service component. The budgeting ratio described earlier is only valid for the first year of System operations. In subsequent years, budgets and year-end audits will be based on actual flow ratios. For example, if the flow measurements indicate that 60% of the flow is produced by Wylie and 40% by Murphy, then the next year’s operating and debt service components would be allocated using a 60/40 split. If in the future, additional participants are added, then the flow ratios will be adjusted using the above method. The contract with the District has a clause for “Credit for Payments Relating to the System.” This clause states: “Each participant shall be entitled to a credit in an amount equal to any funds advanced by such Participant with the approval of the District for land, engineering, construction or other costs related to the System and/or the financing thereof”. All credits for advance made prior to the Service Commencement Date shall bear interest from the date of such advance at a rate equal to the net effective interest rate on the initial issue of the bonds hereunder. The City of Wylie has four such credits at this time. All credits for advances made prior to the Service Commencement Date shall be amortized over a period of twenty years, with such amortization to commence on October 1 of the Fiscal Year following the Service Commencement Date. At September 30, 2005, the City recorded $3,188,849 as a restricted accounts receivable. This amount is being amortized over a twenty-year period commencing with fiscal year 2006. The amortization was $203,717 for 2022, leaving an unamortized balance of $665,413 as of September 30, 2022. 198 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 60 NOTE 13. CONTINGENT LIABILITIES Amounts received or receivable from grantor agencies are subject to audit and adjustment by such agencies. Any disallowed claims, including amounts already collected may constitute a liability of the applicable funds. The amounts, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. The City periodically is a defendant in various lawsuits. At September 30, 2022, after consultation with the City’s attorney, the City is not aware of any pending litigation. As described in Note 8 above, the general revenues of the City are contingently liable for the $2,295,000 payable in General Obligation Bonds which are currently outstanding and recorded as obligations of the Enterprise Fund. The City contracts for garbage disposal with a third party. Under the terms of the agreement the City bills and collects the residential billing and remits that amount to the contracting party. The contractor bills the commercial customers and remits a franchise fee to the City based on total revenues received from the contract. The Wylie Economic Development Corporation provides monetary incentives to companies to relocate within the City of Wylie. At September 30, 2022, these commitments totaled $683,934. NOTE 14. RISK MANAGEMENT The City is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; employee health benefits; and other claims of various natures. The City purchases commercial insurance to indemnify it in event of loss. For the past three years, settlements did not exceed coverage. NOTE 15. TAX ABATEMENTS The City enters into economic development agreements authorized under Chapter 380 of the Texas Local Government Code and Chapter 312 of the Texas Tax Code. These agreements are planning tools designed to stimulate economic activity, redevelopment, community improvement, and provide a return on investment for the community. These programs abate or rebate property and/or sales taxes and may include other incentive payments such as fee reductions or construction costs reimbursements. Economic development agreements are considered on a case by case basis by the City Council and generally contain recapture provisions which may require repayment or termination if recipients do not meet the required provisions of the economic incentives. Other Economic Agreements Chapter 380 of the Texas Local Government Code allows the City to provide grants for the purpose of promoting local economic development. These grants are based on a percentage of property and/or sales tax received by the City. For the fiscal year ending September 30, 2022, the City rebated $210,146 in sales taxes (including $154,549 rebated by WEDC). 199 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 61 NOTE 16. CONDENSED FINANCIAL INFORMATION FOR DISCRETELY PRESENTED COMPONENT UNIT Following is selected condensed financial statement information for the fund basis financial statements of the Wylie Economic Development Corporation: Balance Sheet WEDC Assets Cash and equivalents 10,747,507$ Due from primary government 279,047 Receivables 812,707 Inventory 16,271,496 Prepaids 2,000 Total Assets 28,112,757$ Liabilities Accounts payable 144,611$ Accrued liabilities 13,785 Total Liabilities 158,396 Deferred inflow of resources - unavailable revenue 279,047 Fund Balance 27,675,314 Total Liabilities and Fund Balance 28,112,757$ WEDC Revenues: Sales tax revenue 4,161,282$ Interest income 33,804 Miscellaneous income 141,030 Total Revenues 4,336,116 Expenditures: Expenditures 8,972,600 Other financing sources: Note proceeds 16,216,000 Net change in fund balance 11,579,516 Fund balance 10/1/21 16,095,798 Fund balance 9/30/22 27,675,314$ Statement of Revenues, Expenditures and Changes in Fund Balance 200 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 62 NOTE 16. CONDENSED FINANCIAL INFORMATION FOR DISCRETELY PRESENTED COMPONENT UNIT – CONTINUED Following are reconciliations between the government-wide financial statements and the fund basis financial statements for WEDC: Reconciliation of fund balance to net position: Total fund balance 27,675,314$ Deferred outflows - pensions, $72,603, and OPEB, $3,027 67,748 Deferred inflows - pensions ($44,574) and OPEB ($811)(84,717) Due from primary government is unavailable and not recognized as revenue at the fund level 279,047 Payables for compensated absences (34,566) Accrued interest payable (29,863) Payable for loan principal, net pension liability and OPEB liability (16,194,736) Net position 11,678,227$ Reconciliation of change in fund balance to change in net position: Change in fund balance 11,579,516$ Change in payables for compensated absences (2,265) Change in deferred inflow related to due from primary government 279,047 Change in accrued interest payable (20,259) Net effect of GASB 68 and 75 implementation 13,232 Issuance of debt (16,216,000) Payment of loan principal 5,041,124 Change in net position 674,395$ NOTE 17. LAND ACQUISITION The WEDC owns real property with a carrying value of $16,271,496 as of September 30, 2022. This property is recorded as inventory as it is held for resale and as an incentive to attract businesses. 201 01/24/2023 Item 3. 63 REQUIRED SUPPLEMENTARY INFORMATION 202 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT A-10 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL – GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 64 Original Final Actual Amount Variance with Final Budget - Positive (Negative) REVENUES Ad valorem taxes 28,142,536$ 28,142,536$ 28,048,745$ (93,791)$ Non-property taxes 7,609,932 7,609,932 8,373,812 763,880 Franchise fees 2,896,800 2,896,800 2,897,152 352 Licenses and permits 1,079,430 1,079,430 1,350,938 271,508 Intergovernmental 2,128,034 2,673,532 2,759,195 85,663 Services fees 4,008,588 4,008,588 4,292,868 284,280 Court fees 248,950 248,950 315,067 66,117 Interest income 25,228 25,228 174,728 149,500 Miscellaneous income 217,500 329,339 526,831 197,492 Total revenues 46,356,998 47,014,335 48,739,336 1,725,001 EXPENDITURES Current General government City council 97,257 72,263 45,989 26,274 City manager 1,219,191 1,329,836 1,252,329 77,507 City secretary 386,976 388,450 308,482 79,968 City attorney 170,000 195,000 186,818 8,182 Finance 1,282,361 1,221,631 1,159,851 61,780 Building and fleet maintenance 981,013 978,273 887,288 90,985 Municipal court 553,517 530,514 453,956 76,558 Human resources 677,753 743,111 730,098 13,013 Purchasing 295,653 284,296 221,498 62,798 Information technology 2,017,615 2,127,721 1,667,771 459,950 Combined services/general 6,433,840 4,753,920 4,730,990 22,930 Total general government 14,115,176 12,625,015 11,645,070 979,945 Public safety Police 11,544,468 12,468,653 11,978,373 490,280 Fire 11,023,796 11,770,803 11,018,199 752,604 Emergency communications 1,986,310 2,251,800 1,947,587 304,213 Animal control 603,944 559,267 490,470 68,797 Total public safety 25,158,518 27,050,523 25,434,629 1,615,894 Urban development Planning 323,024 330,908 309,124 21,784 Building inspection 591,600 588,629 520,361 68,268 Code enforcement 259,057 262,419 223,446 38,973 Total urban development 1,173,681 1,181,956 1,052,931 129,025 Streets Streets 5,116,182 5,073,738 3,563,540 1,510,198 Total streets 5,116,182 5,073,738 3,563,540 1,510,198 Budgeted Amounts 203 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT A-10 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES (CONCLUDED) IN FUND BALANCE - BUDGET (GAAP BASIS) AND ACTUAL – GENERAL FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 65 Community service Parks 2,871,985 2,838,034 2,934,174 (96,140) Library 2,037,626 2,178,698 2,015,848 162,850 Total community service 4,909,611 5,016,732 4,950,022 66,710 Total expenditures 50,473,168 50,947,964 46,646,192 4,301,772 Excess (deficiency) of revenues over expenditures (4,116,170) (3,933,629) 2,093,144 6,026,773 OTHER FINANCING SOURCES (USES) Transfers in 2,518,645 2,518,645 2,518,646 1 Transfers out - (7,006,672) (7,006,321) 351 Insurance recovery - - 133,861 133,861 Proceeds from sale of property - - 2,706,165 2,706,165 Total other financing sources (uses)2,518,645 (4,488,027) (1,647,649) 2,840,378 Net change in fund balances (1,597,525) (8,421,656) 445,495 8,867,151 Fund balances, October 1 31,238,765 31,238,765 31,238,765 - Fund balances, September 30 29,641,240$ 22,817,109$ 31,684,260$ 8,867,151$ 204 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NOTES TO BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED SEPTEMBER 30, 2022 66 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information The City follows the following procedures in establishing the budgetary date reflected in the financial statements: 1. Public hearings are conducted to obtain taxpayer comments. 2. Prior to October 1, the budget is legally enacted through passage of an ordinance. 3. The City Manager is authorized to transfer budgeted amounts between programs within a department; however, any revisions between departments, or that alter the total expenditures of any fund must be approved by the City Council. Therefore the department level is the legal level of control. 4. Budgeted amounts are as originally adopted or as amended by the City Council. During 2022, individual amendments were not material in relation to the original appropriations. All budget appropriations automatically lapse at year-end. 5. Formal budgetary integration is employed as a management control device during the year. The legally adopted budget is adopted on a basis consistent with generally accepted accounting principles. 205 01/24/2023 Item 3. 67 206 01/24/2023 Item 3. CITY OF WYLIE, TEXAS TEXAS MUNICIPAL RETIREMENT SYSTEM SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS LAST EIGHT MEASUREMENT YEARS (UNAUDITED) 68 Measurement Year Measurement Year Measurement Year 2014 2015 2016 Total pension liability: Service cost 2,556,890$ 2,884,478$ -$ Interest 3,219,187 3,586,805 3,725,815 Changes of benefit terms - - - Difference between expected and actual experience 184,163 215,566 4,180,949 Change in assumptions - (245,250) - Benefit payments, including refunds of employee contributions (745,575) (999,126) (1,085,194) Net change in total pension liability 5,214,665 5,442,473 6,821,570 Total pension liability - beginning 45,082,724 50,297,389 55,739,862 Total pension liability - ending (a)50,297,389 55,739,862 62,561,432 Plan fiduciary net position: Contributions - employer 2,058,618 2,291,479 2,630,201 Contributions - employee 1,102,273 1,149,849 1,274,657 Net investment income 2,024,176 58,730 2,858,337 Benefit payments, including refunds of employee contributions (745,575) (999,126) (1,085,194) Administrative expense (21,127) (35,762) (32,250) Other (1,737) (1,766) (1,738) Net change in plan fiduciary net position 4,416,628 2,463,404 5,644,013 Plan fiduciary net position - beginning 35,373,254 39,789,882 42,253,286 Plan fiduciary net position - ending (b)39,789,882 42,253,286 47,897,299 Net pension liability - ending (a) - (b)10,507,507$ 13,486,576$ 14,664,133$ Plan fiduciary net position as a percentage of total pension liability 79.11%75.80%76.56% Covered payroll 15,746,759$ 16,426,414$ 18,184,351$ Net pension liability as a percentage of covered payroll 66.73%82.10%80.64% Note: Only eight years of data is presented in accordance with GASB #68, paragraph 138. “The information for all period for the 10-year schedules that are required to be presented as required supplementary information may be available initially. In these cases, during the transition period, that information should be presented for as many periods as are available. The schedules should not include information that is not measured in accordance with the requirements of this statement. Additional years’ information will be displayed as it becomes available.” 207 01/24/2023 Item 3. EXHIBIT A-11 69 Measurement Year Measurement Year Measurement Year Measurement Year Measurement Year 2017 2018 2019 2020 2021 3,534,169$ 3,732,706$ 3,856,949$ 4,164,056$ 4,267,960$ 4,298,623 4,761,659 5,258,675 5,818,955 6,315,835 - - - - - 404,285 577,776 524,371 (321,331) (439,930) - - 406,608 - - (1,290,431) (1,662,660)(1,879,475) (1,919,943) (2,784,954) 6,946,646 7,409,481 8,167,128 7,741,737 7,358,911 62,561,432 69,508,078 76,917,559 85,084,687 92,826,424 69,508,078 76,917,559 85,084,687 92,826,424 100,185,335 2,978,969 3,142,231 3,287,746 3,479,670 3,678,159 1,392,972 1,470,396 1,538,384 1,627,099 1,668,335 6,646,053 (1,728,139) 9,105,849 5,384,137 10,362,682 (1,290,431) (1,662,660)(1,879,475) (1,919,943) (2,784,954) (34,403) (33,340) (51,343) (34,763) (47,839) (1,744) (1,741) (1,542) (1,356) 327 9,691,416 1,186,747 11,999,619 8,534,844 12,876,710 47,897,299 57,588,715 58,775,462 70,775,081 79,309,925 57,588,715 58,775,462 70,775,081 79,309,925 92,186,635 11,919,363$ 18,142,097$ 14,309,606$ 13,516,499$ 7,998,700$ 82.85%76.41%83.18%85.44%92.02% 19,887,590$ 21,008,953$ 21,977,303$ 23,236,919$ 23,830,037$ 59.93%86.35%65.11%58.17%33.57% 208 01/24/2023 Item 3. CITY OF WYLIE, TEXAS TEXAS MUNICIPAL RETIREMENT SYSTEM SCHEDULE OF PENSION CONTRIBUTIONS LAST EIGHT FISCAL YEARS (UNAUDITED) 70 Fiscal Year Fiscal Year Fiscal Year 2015 2016 2017 Actuarially determined contribution 2,235,994$ 2,611,189$ 2,924,821$ Contribution in relation to the actuarially determined contribution 2,235,994 2,611,189 2,924,821 Contribution deficiency (excess)-$ -$ -$ Covered payroll 16,311,322$ 18,212,187$ 19,547,995$ Contributions as a percentage of covered payroll 13.71%14.34%14.96% Note: GASB #68, paragraph 81.2.b requires that the data in this schedule be presented as of the City’s fiscal year as opposed to the time period covered by the measurement date. Note: Only eight years of data is presented in accordance with GASB #68, paragraph 138. “The information for all period for the 10-year schedules that are required to be presented as required supplementary information may be available initially. In these cases, during the transition period, that information should be presented for as many periods as are available. The schedules should not include information that is not measured in accordance with the requirements of this statement. Additional years’ information will be displayed as it becomes available.” 209 01/24/2023 Item 3. EXHIBIT A-12 71 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2018 2019 2020 2021 2022 3,144,978$ 3,283,399$ 3,359,419$ 3,596,280$ 3,958,173$ 3,144,978 3,283,399 3,359,419 3,596,280 3,958,173 -$ -$ -$ -$ -$ 20,843,290$ 21,773,201$ 22,277,304$ 23,369,269 25,796,021 15.09%15.08%15.08%15.39%15.34% 210 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT A-13 TEXAS MUNICIPAL RETIREMENT SYSTEM SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS LAST FIVE MEASUREMENT YEARS (UNAUDITED) 72 Measurement Year Measurement Year Measurement Year Measurement Year Measurement Year 2017 2018 2019 2020 2021 Total OPEB liability: Charges for the year Service cost 27,859$ 35,710$ 30,768$ 44,150$ 57,192$ Interest 13,862 14,885 16,242 15,686 14,575 Changes of benefit terms - - - - - Difference between expected and actual experience - (22,724) (15,356) (6,015) (14,293) Change in assumptions 39,365 (35,164) 96,541 102,727 26,689 Benefit payments (1,990) (2,101) (2,198) (2,324) (7,149) Net change in total OPEB liability 79,096 (9,394) 125,997 154,224 77,014 Total OPEB liability - beginning 353,798 432,894 423,500 549,497 703,721 Total OPEB liability - ending 432,894$ 423,500$ 549,497$ 703,721$ 780,735$ Covered-employee payroll 19,887,590$ 21,008,953$ 21,977,303$ 23,236,919$ 23,830,037$ Total OPEB liability as a percentage of covered-employee payroll 2.18%2.02%2.50%3.03%3.28% Note: Only five years of data is presented in accordance with GASB #75. Additional years’ information will be displayed as it becomes available. The TMRS Supplementary Death Benefit Fund (SDBF) is considered to be an unfunded OPEB plan (there are no assets accumulated in a trust that meets the criteria of GASB codification P22.101 or P52.101 to pay related benefits for the OPEB plan); therefore, no plan fiduciary net position and related ratios are reported in the above schedule. 211 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT A-14 TEXAS MUNICIPAL RETIREMENT SYSTEM SCHEDULE OF OPEB CONTRIBUTIONS LAST FIVE FISCAL YEARS (UNAUDITED) 73 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2018 2019 2020 2021 2022 Actuarially determined contribution 2,086$ 2,160$ 2,228$ 2,337$ 2,580 Contributions in relation to the actuarially determined contribution 2,086 2,160 2,228 2,337 2,580 Contribution deficiency (excess)-$ -$ -$ -$ -$ Covered-employee payroll 20,843,290$ 21,773,201$ 22,277,304$ 23,369,269$ 25,796,021 Contributions as a percentage of covered-employee payroll 0.01%0.01%0.01%0.01%0.01% Note: GASB #75, paragraph 57 requires that the data in this schedule be presented as of the City’s fiscal year as opposed to the time period covered by the measurement date. Note: Only five years of data is presented in accordance with GASB #75. Additional years’ information will be displayed as it becomes available. The TMRS Supplementary Death Benefit Fund (SDBF) is considered to be an unfunded OPEB plan (there are no assets accumulated in a trust that meets the criteria of GASB codification P22.101 or P52.101 to pay related benefits for the OPEB plan). 212 01/24/2023 Item 3. 74 COMBINING STATEMENTS AND BUDGETARY COMPARISON SCHEDULES 213 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT A-15 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) GENERAL OBLIGATION DEBT SERVICE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 75 Variance with Final Budget - Original Final Actual Positive (Negative) REVENUES Ad valorem taxes 8,696,273$ 8,696,273$ 8,660,744$ (35,529)$ Interest income 3,800 3,800 6,109 2,309 Total revenues 8,700,073 8,700,073 8,666,853 (33,220) EXPENDITURES Debt service Principal 6,345,000 6,345,000 6,345,000 - Interest and fiscal charges 2,649,212 2,649,212 2,524,725 124,487 Bond issuance costs - - 74,169 (74,169) Total debt service 8,994,212 8,994,212 8,943,894 50,318 Excess (deficiency) of revenue over (under) expenditures (294,139) (294,139) (277,041) 17,098 OTHER FINANCING SOURCES (USES) Issuance of long-term debt - - 6,770,000 6,770,000 Premium on bonds issued - - 786,582 786,582 Payment to refunded bond escrow agent - - (7,558,830) (7,558,830) Total other financing sources (uses)- - (2,248) (2,248) Net change in fund balances (294,139) (294,139) (279,289) 14,850 Fund balances, October 1 1,122,215 1,122,215 1,122,215 - Fund balances, September 30 828,076$ 828,076$ 842,926$ 14,850$ Budgeted Amounts 214 01/24/2023 Item 3. 76 NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS 4B SALES TAX REVENUE FUND Accounts for sales tax monies specifically designated for promoting economic development within the City by developing, implementing, providing and financing park and recreation projects. PARKS ACQUISITION AND IMPROVEMENT FUND Accounts for the development and improvement of City Parks. FIRE TRAINING CENTER FUND Accounts for First Responder fees specifically designated for the construction of the Fire Training Center. FIRE DEVELOPMENT FEES FUND Accounts for contributions specifically designated for use of the fire department. MUNICIPAL COURT TECHNOLOGY FUND Accounts for court fines specifically designated for additions/improvements in court technology. MUNICIPAL COURT BUILDING SECURITY FUND Accounts for court fines specifically designated for additions/improvements in court building security. HOTEL TAX FUND Accounts for occupancy taxes charged to hotels. FEDERAL SEIZURE FUND Accounts for the City’s share of forfeiture proceeds at the federal level and is restricted for law enforcement additions/improvements only. JUDICIAL EFFICIENCY FUND Accounts for court fines specifically restricted to improving the efficiency of the administration of justice. TRUANCY COURT FUND Accounts for court fines designated for the efficiency of Juvenile Court truancy cases. MUNICIPAL JUDICIAL FUND Accounts for court fines designated for the efficiency in municipal court. DEBT SERVICE FUNDS 4B DEBT SERVICE FUND 1996 Accounts for the accumulation of resources to be used for the payment of principal and interest on the 4B Sales Tax Revenue Bonds – Series 1996. 4B DEBT SERVICE FUND 2005 Accounts for the accumulation of resources to be used for the payment of principal and interest on the 4B Sales Tax Revenue Bonds – Series 2005. 215 01/24/2023 Item 3. 77 216 01/24/2023 Item 3. CITY OF WYLIE, TEXAS COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 78 SPECIAL REVENUE FUNDS 4B Sales Tax Revenue Park Acquisition and Improvement Fire Training Center Fire Development Fees Municipal Court Technology Municipal Court Building Security ASSETS Cash and cash equivalents 6,162,636$ 508,489$ 272,221$ 966,302$ 21,811$ 27,703$ Receivables: (net of allowances for uncollectibles) Other 26,134 - 2,183 - - - Sales tax 739,027 - - - - - Total assets 6,927,797$ 508,489$ 274,404$ 966,302$ 21,811$ 27,703$ LIABILITIES AND FUND BALANCES Accounts payable 73,682$ -$ 79$ -$ -$ -$ Other payables and accruals 80,436 2,328 - - - - Unearned revenue 173,758 - - - - - Total liabilities 327,876 2,328 79 - - - FUND BALANCES Restricted Debt service - - - - - - Economic development 6,599,921 - - - - - Municipal court - - - - 21,811 27,703 Tourism - - - - - - Law enforcement - - - - - - Committed Park acquisition and improvement - 506,161 - - - - Fire training - - 274,325 - - - Fire development - - - 966,302 - - Total fund balances 6,599,921 506,161 274,325 966,302 21,811 27,703 Total liabilities and fund balances 6,927,797$ 508,489$ 274,404$ 966,302$ 21,811$ 27,703$ 217 01/24/2023 Item 3. EXHIBIT B-1 79 Hotel Tax Federal Seizure Judicial Efficiency Truancy Court Municipal Judicial 4B Debt Service 1996 4B Debt Service 2005 Total Nonmajor Governmental Funds 497,090$ 829$ 7,142$ 18,608$ 342$ 186,919$ 29,350$ 8,699,442$ 256,098 - - - - - - 284,415 - - - - - - - 739,027 753,188$ 829$ 7,142$ 18,608$ 342$ 186,919$ 29,350$ 9,722,884$ -$ -$ -$ -$ -$ -$ -$ 73,761$ - - - - - - - 82,764 - - - - - - - 173,758 - - - - - - - 330,283 - - - - - 186,919 29,350 216,269 - - - - - - - 6,599,921 - - 7,142 18,608 342 - - 75,606 753,188 - - - - - 753,188 - 829 - - - - - 829 - - - - - - - 506,161 - - - - - - - 274,325 - - - - - - - 966,302 753,188 829 7,142 18,608 342 186,919 29,350 9,392,601 753,188$ 829$ 7,142$ 18,608$ 342$ 186,919$ 29,350$ 9,722,884$ DEBT SERVICE FUNDS 218 01/24/2023 Item 3. CITY OF WYLIE, TEXAS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 80 SPECIAL REVENUE FUNDS 4B Sales Tax Revenue Park Acquisition and Improvement Fire Training Center Fire Development Fees Municipal Court Technology Municipal Court Building Security REVENUES Sales taxes 4,161,282$ -$ -$ -$ -$ -$ Licenses and permits - - 37,863 - - - Intergovernmental - - - - - - Service fees 807,835 - - - - - Court fees - - - - 6,227 7,383 Development fees - 122,808 - 194,926 - - Interest income 24,612 1,786 1,112 3,976 87 112 Miscellaneous income 29,566 - - - - - Total revenues 5,023,295 124,594 38,975 198,902 6,314 7,495 EXPENDITURES Current: Public safety - - 3,024 81,900 743 4,396 Community service 3,160,848 186,752 - - - - Debt service Principal - - - - - - Interest and fiscal charges - - - - - - Total expenditures 3,160,848 186,752 3,024 81,900 743 4,396 Excess (deficiency) of revenues over (under) expenditures 1,862,447 (62,158) 35,951 117,002 5,571 3,099 Other financing sources (uses) Transfers in - - - - - - Transfers out (383,625) - - - - - Total other financing sources (uses)(383,625) - - - - - Net change in fund balances 1,478,822 (62,158) 35,951 117,002 5,571 3,099 Fund balances October 1, 2021 5,121,099 568,319 238,374 849,300 16,240 24,604 Fund balances September 30, 2022 6,599,921$ 506,161$ 274,325$ 966,302$ 21,811$ 27,703$ 219 01/24/2023 Item 3. EXHIBIT B-2 81 Hotel Tax Federal Seizure Judicial Efficiency Truancy Court Municipal Judicial 4B Debt Service 1996 4B Debt Service 2005 Total Nonmajor Governmental Funds 416,382$ -$ -$ -$ -$ -$ -$ 4,577,664$ - - - - - - - 37,863 - - - - - - - - - - - - - - - 807,835 - - 1,690 1,700 142 - - 17,142 - - - - - - - 317,734 2,042 - 29 78 1 787 231 34,853 - - - - - - - 29,566 418,424 - 1,719 1,778 143 787 231 5,822,657 - 10,070 - - - - - 100,133 184,606 - - - 3,532,206 - - - - - - 345,000 345,000 - - - - - - 38,625 38,625 184,606 10,070 - - - - 383,625 4,015,964 233,818 (10,070) 1,719 1,778 143 787 (383,394) 1,806,693 - 3,070 - - - - 383,625 386,695 (30,000) - - - - - - (413,625) (30,000) 3,070 - - - - 383,625 (26,930) 203,818 (7,000) 1,719 1,778 143 787 231 1,779,763 549,370 7,829 5,423 16,830 199 186,132 29,119 7,612,838 753,188$ 829$ 7,142$ 18,608$ 342$ 186,919$ 29,350$ 9,392,601$ DEBT SERVICE FUNDS 220 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT C-1 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) 4B SALES TAX REVENUE FUND SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 82 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Sales taxes 3,789,966$ 3,789,966$ 4,161,282$ 371,316$ Service fees 552,500 594,000 807,835 213,835 Interest income 1,700 1,700 24,612 22,912 Miscellaneous income 17,250 17,250 29,566 12,316 Total revenues 4,361,416 4,402,916 5,023,295 620,379 EXPENDITURES Current Community service 4B Parks 716,133 1,029,006 613,168 415,838 4B Brown House 477,962 481,133 200,865 280,268 4B Recreation 2,571,516 2,842,977 2,346,815 496,162 Total community service 3,765,611 4,353,116 3,160,848 1,192,268 Total expenditures 3,765,611 4,353,116 3,160,848 1,192,268 Excess (deficiency) of revenues over (under) expenditures 595,805 49,800 1,862,447 1,812,647 Other financing sources (uses) Transfers out (383,625) (383,625) (383,625) - Total other financing sources (uses)(383,625) (383,625) (383,625) - Net change in fund balances 212,180 (333,825) 1,478,822 1,812,647 Fund balances, October 1 5,121,099 5,121,099 5,121,099 - Fund balances, September 30 5,333,279$ 4,787,274$ 6,599,921$ 1,812,647$ Budgeted Amounts 221 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT C-2 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) PARK ACQUISTION AND IMPROVEMENT SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 83 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Development fees 614,500$ 614,500$ 122,808$ (491,692)$ Interest income 353 353 1,786 1,433 Total revenues 614,853 614,853 124,594 (490,259) EXPENDITURES Current Community service Park acquisition - central zone 192,419 192,419 186,752 5,667 Total expenditures 192,419 192,419 186,752 5,667 Excess (deficiency) of revenues over (under) expenditures 422,434 422,434 (62,158) (484,592) Net change in fund balances 422,434 422,434 (62,158) (484,592) Fund balances, October 1 568,319 568,319 568,319 - Fund balances, September 30 990,753$ 990,753$ 506,161$ (484,592)$ Budgeted Amounts 222 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT C-3 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) FIRE TRAINING CENTER SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 84 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Licenses and Permits 29,000$ 29,000$ 37,863$ 8,863$ Interest income 108 108 1,112 1,004 Total revenues 29,108 29,108 38,975 9,867 EXPENDITURES Current Public safety Fire training center 30,000 30,000 3,024 26,976 Total public safety 30,000 30,000 3,024 26,976 Net change in fund balances (892) (892) 35,951 36,843 Fund balances, October 1 238,374 238,374 238,374 - Fund balances, September 30 237,482$ 237,482$ 274,325$ 36,843$ Budgeted Amounts 223 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT C-4 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) FIRE DEVELOPMENT FEES SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 85 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Interest income 716$ 716$ 3,976$ 3,260$ Development fees 260,000 260,000 194,926 (65,074) Total revenues 260,716 260,716 198,902 (61,814) EXPENDITURES Current Public safety Fire development 214,267 214,267 81,900 132,367 Total public safety 214,267 214,267 81,900 132,367 Excess (deficiency) of revenues over (under) expenditures 46,449 46,449 117,002 70,553 Fund balances, October 1 849,300 849,300 849,300 - Fund balances, September 30 895,749$ 895,749$ 966,302$ 70,553$ Budgeted Amounts 224 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT C-5 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) MUNICIPAL COURT TECHNOLOGY FUND SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 86 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Court fees 5,000$ 5,000$ 6,227$ 1,227$ Interest income - - 87 87 Total revenues 5,000 5,000 6,314 1,314 EXPENDITURES Current Public safety 2,000 2,000 743 1,257 Total public safety 2,000 2,000 743 1,257 Excess (deficiency) of revenues over (under) expenditures 3,000 3,000 5,571 2,571 Net change in fund balances 3,000 3,000 5,571 2,571 Fund balances, October 1 16,240 16,240 16,240 - Fund balances, September 30 19,240$ 19,240$ 21,811$ 2,571$ Budgeted Amounts 225 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT C-6 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) MUNICIPAL COURT BUILDING SECURITY FUND SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 87 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Court fees 5,000$ 5,000$ 7,383$ 2,383$ Interest income - - 112 112 Total revenues 5,000 5,000 7,495 2,495 EXPENDITURES Current Public safety 6,250 6,250 4,396 1,854 Total public safety 6,250 6,250 4,396 1,854 Excess (deficiency) of revenues over (under) expenditures (1,250) (1,250) 3,099 4,349 Net change in fund balances (1,250) (1,250) 3,099 4,349 Fund balances, October 1 24,604 24,604 24,604 - Fund balances, September 30 23,354$ 23,354$ 27,703$ 4,349$ Budgeted Amounts 226 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT C-7 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) HOTEL TAX FUND SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMEBER 30, 2022 88 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Sales taxes 200,000$ 200,000$ 416,382$ 216,382$ Interest income 200 200 2,042 1,842 Total revenues 200,200 200,200 418,424 218,224 EXPENDITURES Current Community service 210,700 210,700 184,606 26,094 Total expenditures 210,700 210,700 184,606 26,094 Excess (deficiency) of revenues over (under) expenditures (10,500) (10,500) 233,818 244,318 Other financing uses Transfers out (30,000) (30,000) (30,000) - Total other financing uses (30,000) (30,000) (30,000) - Net change in fund balances (40,500) (40,500) 203,818 244,318 Fund balances, October 1 549,370 549,370 549,370 - Fund balances, September 30 508,870$ 508,870$ 753,188$ 244,318$ Budgeted Amounts 227 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT C-8 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) FEDERAL SEIZURE FUND SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 89 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Miscellaneous income - 3,070 - (3,070) Total revenues - 3,070 - (3,070) EXPENDITURES Current Public safety - 10,070 10,070 - Total public safety - 10,070 10,070 - Excess of revenues over expenditures - (7,000) (10,070) (3,070) Other financing uses Transfers in - - 3,070 3,070 Total other financing uses - - 3,070 3,070 Net change in fund balances - (7,000) (7,000) - Fund balances, October 1 7,829 7,829 7,829 - Fund balances, September 30 7,829$ 829$ 829$ -$ Budgeted Amounts 228 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT C-9 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) JUDICIAL EFFICIENCY FUND SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 90 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Court fees 1,000$ 1,000$ 1,690$ 690$ Interest income - - 29 29 Total revenues 1,000 1,000 1,719 719 EXPENDITURES Current Court - - - - Total court - - - - Net change in fund balances 1,000 1,000 1,719 719 Fund balances, October 1 5,423 5,423 5,423 - Fund balances, September 30 6,423$ 6,423$ 7,142$ 719$ Budgeted Amounts 229 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT C-10 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) TRUANCY COURT FUND SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 91 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Court fees 1,500$ 1,500$ 1,700$ 200$ Interest income - - 78 78 Total revenues 1,500 1,500 1,778 278 EXPENDITURES Current Court 1,000 1,000 - 1,000 Total court 1,000 1,000 - 1,000 Net change in fund balances 500 500 1,778 1,278 Fund balances, October 1 16,830 16,830 16,830 - Fund balances, September 30 17,330$ 17,330$ 18,608$ 1,278$ Budgeted Amounts 230 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT C-11 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) MUNICIPAL JUDICIAL FUND SPECIAL REVENUE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 92 Original Final Actual Variance with Final Budget Positive (Negative) REVENUES Court fees 100$ 100$ 142$ 42$ Interest income - - 1 1 Total revenues 100 100 143 43 EXPENDITURES Current Court - - - - Total court - - - - Net change in fund balances 100 100 143 43 Fund balances, October 1 199 199 199 - Fund balances, September 30 299$ 299$ 342$ 43$ Budgeted Amounts 231 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT D-1 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) 4B DEBT SERVICE 1996 FUND DEBT SERVICE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 93 Variance with Final Budget - Original Final Actual Positive (Negative) REVENUES Interest income -$ -$ 787$ 787$ Total revenues - - 787 787 EXPENDITURES Debt service Principal - - - - Interest and fiscal charges - - - - Total expenditures - - - - Net change in fund balances - - 787 787 Fund balances, October 1 186,132 186,132 186,132 - Fund balances, September 30 186,132$ 186,132$ 186,919$ 787$ Budgeted Amounts 232 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXHIBIT D-2 BUDGETARY COMPARISON SCHEDULE (GAAP BASIS) 4B DEBT SERVICE 2005 FUND DEBT SERVICE FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 94 Variance with Final Budget - Original Final Actual Positive (Negative) REVENUES Interest income -$ -$ 231$ 231$ Total revenues - - 231 231 EXPENDITURES Debt service Principal 345,000 345,000 345,000 - Interest and fiscal charges 38,625 38,625 38,625 - Total expenditures 383,625 383,625 383,625 - Excess (deficiency) of revenues over (under) expenditures (383,625) (383,625) (383,394) 231 Other financing sources Transfers in 383,625 383,625 383,625 - Total other financing sources 383,625 383,625 383,625 - Net change in fund balances - - 231 231 Fund balances, October 1 29,119 29,119 29,119 - Fund balances, September 30 29,119$ 29,119$ 29,350$ 231$ Budgeted Amounts 233 01/24/2023 Item 3. 95 234 01/24/2023 Item 3. 96 STATISTICAL SECTION 235 01/24/2023 Item 3. CITY OF WYLIE, TEXAS STATISTICAL SECTION TABLE OF CONTENTS 97 This part of the City of Wylie's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, notes disclosures, and required supplementary information says about the City's overall financial health. This information has not been audited by the independent auditor. Contents Table #s Financial Trends 1-5 These tables contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity 6-12 These tables contain information to help the reader assess the City's two most significant local revenue sources, the property and sales taxes. Debt Capacity 13-17 These tables present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Economic and Demographic Information 18-19 These tables offer economic and demographic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information 20-22 These tables contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides. Source: Unless otherwise noted, the information in these labels is derived from the comprehensive annual financial reports for the relevant year. The City implemented GASB Statement 34 in fiscal year 2003: tables pressing government-wide information include information beginning in that year. 236 01/24/2023 Item 3. CITY OF WYLIE, TEXAS NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (UNAUDITED) 98 Fiscal Year 2013 2014 2015 2016 Governmental Activities Invested in Capital Assets, Net of Related Debt 97,011,784$ 104,161,153$ 110,141,284$ 120,169,208$ Restricted 2,028,665 1,910,643 2,198,212 3,308,748 Unrestricted 19,453,739 15,353,055 12,040,540 14,016,198 Total Governmental Activities Net Assets 118,494,188 121,424,851 124,380,036 137,494,154 Business-type Activities Invested in Capital Assets, Net of Related Debt 45,467,130 46,332,004 47,855,920 48,313,914 Restricted 3,477,195 3,682,967 5,039,922 5,883,377 Unrestricted 10,939,781 10,466,437 10,249,068 10,803,417 Total Business-type Activities Net Assets 59,884,106 60,481,408 63,144,910 65,000,708 Primary Government Invested in Capital Assets, Net of Related Debt 142,478,914 150,493,157 157,997,204 168,483,122 Restricted 5,505,860 5,593,610 7,238,134 9,192,125 Unrestricted 30,393,520 25,819,492 22,289,608 24,819,615 Total Primary Government Net Assets 178,378,294 181,906,259 187,524,946 202,494,862 Note: The city began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003. This information is presented using the accrual basis of accounting. 237 01/24/2023 Item 3. TABLE 1 99 2017 2018 2019 2020 2021 2022 131,493,684$ 139,434,589$ 144,685,908$ 159,454,525$ 163,767,912$ ########### 4,145,132 4,294,426 14,718,498 12,716,750 15,473,019 27,780,709 20,176,356 21,771,662 12,893,405 12,944,197 20,435,713 21,412,498 155,815,172 165,500,677 172,297,811 185,115,472 199,676,644 214,215,440 43,143,369 51,965,084 53,636,639 55,515,141 56,032,882 57,282,050 7,125,122 8,327,382 8,265,544 9,606,719 11,072,169 12,100,734 19,043,168 13,086,407 15,637,669 20,263,917 24,740,623 29,917,064 69,311,659 73,378,873 77,539,852 85,385,777 91,845,674 99,299,848 174,637,053 191,399,673 198,322,547 214,969,666 219,800,794 222,304,283 11,270,254 12,621,808 22,984,042 22,323,469 26,545,188 39,881,443 39,219,524 34,858,069 28,531,074 33,208,114 45,176,336 51,329,562 225,126,831 238,879,550 249,837,663 270,501,249 291,522,318 313,515,288 238 01/24/2023 Item 3. CITY OF WYLIE, TEXAS EXPENSES, PROGRAM REVENUES, AND NET (EXPENSE)/REVENUE LAST TEN FISCAL YEARS (UNAUDITED) 100 2013 2014 2015 2016 Expenses Governmental Activities: General Government 5,617,973$ 4,731,511$ 8,292,990$ 9,547,712$ Public Safety 14,886,917 16,818,848 15,265,836 16,665,427 Urban development 1,143,806 1,175,311 1,040,898 1,012,093 Streets 7,080,061 8,019,706 7,649,278 6,941,858 Community service 6,861,667 7,189,773 7,326,919 7,750,815 Interest on Long-Term Debt 4,283,310 4,029,262 3,920,570 3,439,372 Total Governmental Activities Expenses 39,873,734 41,964,411 43,496,491 45,357,277 Business-type Activities Utility 11,644,534 12,600,422 12,878,510 14,250,070 Total Business-type Activities Expenses 11,644,534 12,600,422 12,878,510 14,250,070 Total Primary Government Expenses 51,518,268$ 54,564,833$ 56,375,001$ 59,607,347$ Program Revenues Governmental Activities: Charges for Services: General Government 2,304,350$ 2,452,885$ 2,650,115$ 2,805,284$ Public safety 1,375,077 1,514,932 1,519,821 1,665,370 Urban development 699,296 824,241 1,399,132 1,497,411 Community service 815,741 875,090 946,334 383,916 Operating Grants and Contributions 142,063 332,004 467,147 359,928 Capital Grants and Contributions 4,815,624 6,651,870 10,343,185 12,277,481 Total Governmental Activities Program Revenues 10,152,151 12,651,022 17,325,734 18,989,390 Business-type Activities: Charges for Services: Utility 13,571,924 13,767,869 15,473,529 15,997,794 Capital Grants and Contributions 543,678 1,052,390 2,399,575 1,496,700 Total Business-type Activities Program Revenues 14,115,602 14,820,259 17,873,104 17,494,494 Total Primary Government Programs Revenues 24,267,753 27,471,281 35,198,838 36,483,884 Net (Expense)/Revenue Governmental Activities (29,721,583)$ (29,313,389)$ (26,170,757)$ (26,367,887)$ Business-type Activities 2,471,068 2,219,837 4,994,594 3,244,424 Total Primary Government Net Expense (27,250,515) (27,093,552) (21,176,163) (23,123,463) Note: The city began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003. This information is presented using the accrual basis of accounting. 239 01/24/2023 Item 3. TABLE 2 101 2017 2018 2019 2020 2021 2022 9,460,047$ 10,540,621$ 11,634,904$ 12,134,312$ 12,690,079$ 13,682,957$ 17,893,012 20,843,027 22,175,998 23,057,208 23,478,532 25,164,617 1,179,962 1,354,808 1,346,364 1,108,956 1,121,650 1,020,885 8,044,783 8,832,924 8,912,861 9,259,873 9,133,138 10,393,464 7,709,291 9,561,750 9,530,076 9,860,490 9,309,304 9,217,814 2,752,525 2,659,653 2,688,231 2,448,009 2,235,277 2,118,360 47,039,620 53,792,783 56,288,434 57,868,848 57,967,980 61,598,097 15,334,168 17,157,737 17,635,306 18,655,149 19,053,908 20,876,930 15,334,168 17,157,737 17,635,306 18,655,149 19,053,908 20,876,930 62,373,788$ 70,950,520$ 73,923,740$ 76,523,997$ 77,021,888$ 82,475,027$ 2,887,799$ 2,924,232$ 2,919,563$ 2,968,934$ 3,133,030$ 3,376,459$ 1,682,035 1,950,380 2,084,957 2,994,404 2,807,595 3,505,797 1,589,740 1,443,985 1,486,285 1,560,468 1,807,612 1,727,784 382,566 394,997 415,862 212,406 377,217 527,150 364,935 346,444 1,115,044 388,250 730,139 663,356 15,186,815 11,809,600 6,608,297 11,902,495 10,810,966 7,619,607 22,093,890 18,869,638 14,630,008 20,026,957 19,666,559 17,420,153 18,169,571 19,431,713 20,662,507 23,047,261 24,400,005 27,371,622 3,280,520 3,646,800 2,783,419 5,590,177 3,317,635 3,189,643 21,450,091 23,078,513 23,445,926 28,637,438 27,717,640 30,561,265 43,543,981 41,948,151 38,075,934 48,664,395 47,384,199 47,981,418 (24,945,730)$ (34,923,145)$ (41,658,426)$ (37,841,891)$ (38,301,421)$ (44,177,944)$ 6,115,923 5,920,776 5,810,620 9,982,289 8,663,732 9,684,335 (18,829,807) (29,002,369) (35,847,806) (27,859,602) (29,637,689) (34,493,609) 240 01/24/2023 Item 3. CITY OF WYLIE, TEXAS GENERAL REVENUES AND TOTAL CHANGE IN NET POSITION LAST TEN FISCAL YEARS (UNAUDITED) 102 Fiscal Year 2013 2014 2015 2016 Net (Expense)/Revenue Governmental Activities (29,721,583)$ (29,313,389)$ (26,170,757)$ (26,367,887)$ Business-type Activities 2,471,068 2,219,837 4,994,594 3,244,424 Total Primary Government Net Expense (27,250,515) (27,093,552) (21,176,163) (23,123,463) Governmental Revenues and Other Changes in Net Position Governmental Activities: Taxes Property Taxes 21,280,279 22,537,796 24,620,586 26,992,416 Sales Taxes 5,635,492 5,872,316 6,663,646 7,555,687 Franchise Taxes 2,238,997 2,497,660 2,665,092 2,709,736 Unrestricted Investment Earnings 41,651 7,857 12,708 65,850 Miscellaneous Income 423,219 186,802 160,750 149,534 Gain on disposal of capital assets 8,317 49,752 339,328 96,937 Transfers (61,630) 1,709,611 1,961,899 1,911,845 Total Governmental Activities 29,566,325 32,861,794 36,424,009 39,482,005 Business-type Activities: Investment Earnings 114,480 98,049 93,293 103,521 Miscellaneous Income 156,105 174,147 336,548 419,698 Transfers 61,630 (1,709,611) (1,961,899) (1,911,845) Total Business-type Activities 332,215 (1,437,415) (1,532,058) (1,388,626) Total Primary Government 29,898,540$ 31,424,379$ 34,891,951$ 38,093,379$ Change in Net Position Governmental Activities (155,258)$ 3,548,405$ 10,253,252$ 13,114,118$ Business-type Activities 2,803,283 782,422 3,462,536 1,855,798 Total Primary Government 2,648,025$ 4,330,827$ 13,715,788$ 14,969,916$ Note: The city began to report accrual information when it implemented GASB Statement 34 in fiscal year 2003. This information is presented using the accrual basis of accounting. 241 01/24/2023 Item 3. TABLE 3 103 2017 2018 2019 2020 2021 2022 (24,945,730)$ (34,923,145)$ (41,658,426)$ (37,841,891)$ (38,301,421)$ (44,177,944)$ 6,115,923 5,920,776 5,810,620 9,982,289 8,663,732 9,684,335 (18,829,807) (29,002,369) (35,847,806) (27,859,602) (29,637,689) (34,493,609) 30,065,957 31,459,533 33,275,978 34,300,635 35,629,027 36,723,108 7,993,453 7,859,294 8,967,508 10,037,707 11,832,404 12,951,476 2,726,088 2,749,138 2,883,573 2,734,736 2,675,866 2,929,590 145,377 312,765 495,039 188,991 31,845 307,155 223,012 356,159 559,846 914,338 276,181 610,600 - - - 77,901 1,109 2,706,165 2,112,861 2,166,807 2,273,616 2,405,244 2,416,161 2,488,646 43,266,748 44,903,696 48,455,560 50,659,552 52,862,593 58,716,740 135,053 212,774 266,776 138,968 62,113 195,126 172,836 129,963 357,199 129,912 150,213 63,359 (2,112,861) (2,166,807) (2,273,616) (2,405,244) (2,416,161) (2,488,646) (1,804,972) (1,824,070) (1,649,641) (2,136,364) (2,203,835) (2,230,161) 41,461,776$ 43,079,626$ 46,805,919$ 48,523,188$ 50,658,758$ 56,486,579$ 18,321,018$ 9,980,551$ 6,797,134$ 12,817,661$ 14,561,172$ 14,538,796$ 4,310,951 4,096,706 4,160,979 7,845,925 6,459,897 7,454,174 22,631,969$ 14,077,257$ 10,958,113$ 20,663,586$ 21,021,069$ 21,992,970$ 242 01/24/2023 Item 3. CITY OF WYLIE, TEXAS FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (UNAUDITED) 104 Fiscal Year 2013 2014 2015 2016 General Fund Nonspendable 189,310$ 185,370$ 181,891$ 194,820$ Restricted 17,055 37,299 31,167 44,107 Committed 14,096 159,429 168,017 591,471 Assigned 137,409 174,173 170,213 88,788 Unassigned 11,734,825 11,737,159 13,561,725 16,272,269 Total General Fund 12,092,695$ 12,293,430$ 14,113,013$ 17,191,455$ All Other Governmental Funds Nonspendable -$ -$ -$ -$ Restricted 19,006,290 14,424,699 12,401,450 12,481,571 Committed 1,916,938 1,834,152 2,668,895 2,662,297 Unassigned - - - - Total All Other Governmental Funds 20,923,228$ 16,258,851$ 15,070,345$ 15,143,868$ 243 01/24/2023 Item 3. TABLE 4 105 2017 2018 2019 2020 2021 2022 156,872$ 173,603$ 167,898$ 168,120$ 183,212$ 179,473$ 44,107 29,381 37,921 38,037 57,849 499,218 413,504 354,354 378,727 416,297 521,710 510,191 88,788 1,381,468 2,948,194 60,732 72,991 84,367 19,077,408 16,202,153 16,509,743 21,914,768 30,403,003 30,411,011 19,780,679$ 18,140,959$ 20,042,483$ 22,597,954$ 31,238,765$ 31,684,260$ -$ -$ -$ -$ -$ -$ 15,313,781 28,176,150 29,096,638 19,993,700 23,675,046 32,777,064 2,735,089 3,083,992 2,901,614 2,341,758 1,655,993 1,746,788 - - - - - - 18,048,870$ 31,260,142$ 31,998,252$ 22,335,458$ 25,331,039$ 34,523,852$ 244 01/24/2023 Item 3. CITY OF WYLIE, TEXAS CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (UNAUDITED) 106 Fiscal Year 2013 2014 2015 2016 Revenues Ad valorem taxes 21,232,219$ 22,539,230$ 24,515,600$ 27,127,964$ Sales taxes 5,635,492 5,872,316 6,663,646 7,555,687 Franchise fees 2,324,149 2,579,004 2,595,964 2,666,356 Licenses and permits 1,012,501 1,595,468 2,465,148 1,623,398 Intergovernmental 3,315,505 3,983,797 2,307,516 4,591,241 Service fees 3,627,931 3,852,357 4,183,790 4,306,832 Court fees 284,606 288,591 413,757 536,106 Development fees - - 880,193 473,966 Interest income 41,651 7,857 12,708 65,850 Miscellaneous income 692,886 550,732 326,323 292,456 Total Revenues 38,166,940 41,269,352 44,364,645 49,239,856 Expenditures General Government 7,007,712 7,623,082 8,405,920 9,396,230 Public Safety 13,980,047 14,230,747 15,064,971 17,577,736 Urban development 1,144,217 1,170,740 1,124,212 1,109,049 Streets 1,648,373 1,848,617 1,901,138 2,190,086 Community Service 5,197,133 5,469,383 5,860,111 6,408,022 Capital Outlay 13,585,375 8,762,342 5,167,717 5,047,777 Debt Service: Principal 3,994,879 4,320,000 4,695,000 5,000,000 Interest and fiscal charges 4,358,181 4,191,706 3,707,211 3,170,926 Bond issuance costs 87,845 - 244,695 323,391 Total Expenditures 51,003,762 47,616,617 46,170,975 50,223,217 Excess of Revenues Over (Under) Expenditures (12,836,822) (6,347,265) (1,806,330) (983,361) Other Financing Sources (Uses) Transfers In 3,696,525 5,411,900 3,594,899 3,738,641 Transfers Out (3,036,229) (3,628,021) (1,633,000) (1,785,791) Issuance of long-term debt 7,400,000 - 21,240,000 30,110,000 Premium on bonds issued 374,207 - 3,128,967 5,833,412 Payment to refunded bond escrow agent (7,839,529) - (24,376,415) (36,041,783) Proceeds from financed purchase - - - - Proceeds from note - - - - Insurance recovery - - - 2,110,037 Reimbursement from other funds - - - - Sale of capital assets 8,317 99,744 482,956 170,810 Total Other Financing Sources (Uses)603,291 1,883,623 2,437,407 4,135,326 Net Change in Fund Balances (12,233,531) (4,463,642) 631,077 3,151,965 Debt Service as a Percentage of Noncapital Expenditures 22.3%22.7%21.1%18.7% 245 01/24/2023 Item 3. TABLE 5 107 2017 2018 2019 2020 2021 2022 30,062,648$ 31,521,403$ 33,215,374$ 34,314,132$ 35,624,174$ 36,709,489$ 7,993,453 7,859,294 8,967,508 10,037,707 11,832,404 12,951,476 2,686,550 2,740,472 2,845,824 2,961,998 2,696,702 2,897,152 2,187,821 2,118,115 1,766,155 1,908,981 2,008,730 2,192,510 4,668,258 1,353,146 1,400,092 2,838,041 5,191,266 4,602,908 4,416,964 4,338,603 4,698,587 4,252,796 4,880,463 5,100,703 582,418 486,980 318,245 251,030 305,022 332,209 969,365 273,022 448,375 477,776 599,978 317,734 145,377 312,765 495,039 188,991 31,845 307,155 310,104 482,294 310,171 183,002 289,114 556,397 54,022,958 51,486,094 54,465,370 57,414,454 63,459,698 65,967,733 10,677,430 10,041,180 10,236,046 10,701,921 11,253,180 11,645,070 18,190,153 19,420,235 20,609,710 21,960,879 22,995,835 25,534,762 1,270,481 1,309,980 1,266,940 1,045,043 1,085,839 1,052,931 3,070,133 3,165,925 3,148,092 3,130,606 2,926,280 3,563,540 8,359,639 7,696,489 7,716,418 8,427,509 7,756,927 8,482,228 3,493,929 674,969 2,674,900 13,950,920 4,939,120 7,557,044 5,060,000 5,350,000 5,655,000 6,055,000 6,380,000 6,690,000 3,181,314 3,003,262 3,180,134 2,895,388 2,556,000 2,563,350 - 89,500 - - 154,686 121,823 53,303,079 50,751,540 54,487,240 68,167,266 60,047,867 67,210,748 719,879 734,554 (21,870) (10,752,812) 3,411,831 (1,243,015) 3,477,861 6,372,660 4,900,804 5,802,294 3,776,186 9,908,592 (1,365,000) (4,205,853) (2,627,188) (3,397,050) (1,360,025) (7,419,946) - 8,500,000 - - 10,165,000 12,005,000 - 106,250 - - 1,008,899 1,106,481 - - - - (5,521,619) (7,558,830) 1,130,553 - - 384,243 - - 86,034 - - - - - 1,444,899 11,693 387,888 774,289 62,833 133,861 - - - - - - - 52,248 - 81,713 93,287 2,706,165 4,774,347 10,836,998 2,661,504 3,645,489 8,224,561 10,881,323 5,494,226 11,571,552 2,639,634 (7,107,323) 11,636,392 9,638,308 17.7%17.1%17.5%17.1%16.5%15.7% 246 01/24/2023 Item 3. CITY OF WYLIE, TEXAS TABLE 6 TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (UNAUDITED) 108 Fiscal Ad Valorem Sales Franchise Year Taxes Taxes Taxes Total 2013 21,232,219$ 5,635,492$ 2,324,149$ 29,191,860$ 2014 22,539,230 5,872,316 2,579,004 30,990,550 2015 24,515,600 6,663,646 2,595,964 33,775,210 2016 27,127,964 7,555,687 2,666,356 37,350,007 2017 30,062,648 7,993,453 2,686,550 40,742,651 2018 31,521,403 7,859,294 2,740,472 42,121,169 2019 33,215,374 8,967,508 2,845,824 45,028,706 2020 34,314,132 10,037,707 2,961,998 47,313,837 2021 35,624,174 11,832,404 2,696,702 50,153,280 2022 36,709,489 12,951,476 2,897,152 52,558,117 Percent Change 15,477,270$ 7,315,984$ 573,003$ 23,366,257$ 2013-2022 74.6%157.9%25.1%84.5% 247 01/24/2023 Item 3. TABLE 7 CITY OF WYLIE, TEXAS ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (UNAUDITED) 109 Less:Total Taxable Total Fiscal Residential Commercial Industrial Tax-Exempt Assessed Direct Tax Year Property Property Property Property Value Rate 2013 1,906,900,883 362,556,519 112,905,366 111,897,168 2,270,465,600 0.8889 2014 2,029,810,891 385,941,414 120,187,762 119,114,535 2,416,825,532 0.8839 2015 2,159,677,849 456,585,488 120,520,310 118,002,192 2,618,781,455 0.8789 2016 2,403,735,226 493,073,892 184,902,709 160,657,963 2,921,053,864 0.8689 2017 2,796,346,833 524,315,031 174,771,677 169,870,475 3,325,563,066 0.8489 2018 3,184,597,754 591,109,898 210,303,769 209,198,308 3,776,813,114 0.7810 2019 3,616,909,043 650,624,491 201,759,611 209,789,356 4,259,503,789 0.7258 2020 3,980,455,949 702,559,463 214,177,830 220,278,824 4,676,914,418 0.6885 2021 4,152,109,035 771,948,729 188,882,599 231,292,765 4,881,647,598 0.6720 2022 4,583,130,357 756,764,219 190,265,923 240,544,476 5,289,616,023 0.6438 Source: Central Appraisal District of Collin County web site (www.collincad.org) 248 01/24/2023 Item 3. CITY OF WYLIE, TEXAS TABLE 8 DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS (UNAUDITED) 110 General Wylie Community Collin County Total Direct & Fiscal Basic Obligation Total Independent Independent Collin Community Overlapping Year Rate Debt Service Direct Rate School District School District County College District Rates 2013 0.590620 0.298280 0.888900 1.6400 1.4950 0.2400 0.0863 4.3502 2014 0.593314 0.290586 0.883900 1.6400 1.6250 0.2375 0.0836 4.4700 2015 0.597978 0.280922 0.878900 1.6400 1.6150 0.2350 0.0820 4.4509 2016 0.611583 0.257317 0.868900 1.6400 1.6250 0.2250 0.0820 4.4409 2017 0.623399 0.225501 0.848900 1.6400 1.6250 0.2084 0.0812 4.4035 2018 0.580307 0.200693 0.781000 1.6400 1.6250 0.1922 0.0798 4.3181 2019 0.538206 0.187642 0.725848 1.6400 1.6700 0.1808 0.0812 4.2979 2020 0.516225 0.172229 0.688454 1.5384 1.5684 0.1750 0.0812 4.0514 2021 0.512180 0.159799 0.671979 1.5205 1.4862 0.1725 0.0812 3.9324 2022 0.491864 0.151887 0.643751 1.4598 1.4603 0.1681 0.0812 3.8132 (1) Source: Central appraisal District of Colling County web site (www.collincad.org). (2) Although the Community Independent School District is included in the above presentation, less than one percent of the City of Wylie lies within this taxing jurisdiction. (3) Basis for property tax rate is per $100 of taxable valuation. City Direct Rates Overlapping Rates 249 01/24/2023 Item 3. CITY OF WYLIE, TEXAS TABLE 9 PRINCIPAL PROPERTY TAX PAYERS CURRENT YEAR AND TEN YEARS AGO (UNAUDITED) 111 Percentage Percentage Taxable of Total City Taxable of Total City Assessed Taxable Assessed Taxable Taxpayer Value Rank Assessed Value Value Rank Assessed Value BVF-V Wylie LLC 53,470,016$ 1 1.01% Seventy8 & Westgate LP 49,428,591 2 0.93% LPRE Wylie LLC 48,400,911 3 0.92% Creekside South Gardens LP 44,502,244 4 0.84% Woodbridge Wylie Owner LLC 41,312,854 5 0.78% Tower Extrusion LTD 38,803,014 6 0.73% Sanden International (USA) Inc.33,983,359 7 0.64%42,516,300$ 1 1.94% Wylie Apartments LP 33,185,459 8 0.63% 2000 Country Club Road LLC 30,999,032 9 0.59% Holland Hitch of Tx Inc.26,323,276 10 0.50%12,671,384 8 0.58% Oncor Electric Delivery Company LLC 24,589,435 11 0.46%17,390,936 4 0.79% Bloomfield Homes LP 17,751,685 12 0.34% Sanden International (USA) Inc.17,459,079 13 0.33%15,000,000 5 0.68% Yes Companies Key LLC 15,040,400 14 0.28%10,810,733 10 0.49% Kroger Texas LP 14,037,000 15 0.27% Kansas City Southern Railway Co.14,036,547 16 0.27% Wal-Mart Real Estate Business TR 13,788,000 17 0.26%14,294,138 6 0.65% HTA-Wylie Medical Plaza LLC 12,787,500 18 0.24% Target Corporation 12,691,400 19 0.24%13,998,400 7 0.64% Westdale Rustic Oaks LTD 11,979,815 20 0.23%5,266,333 20 0.24% Woodbridge Dallas Associates LLC - 24,499,183 2 1.12% Woodbridge Crossing LP - 20,526,236 3 0.93% Carlisle Coating & Waterproofing Inc.10,824,044 9 0.49% Atrium Companies Inc.- 10,259,550 11 0.47% Cascades Apartments LTD - 1,000,000 12 0.05% Best Circuit Boards Inc.- 9,687,597 13 0.44% GTE Southwest Inc.- 8,807,450 14 0.40% Sooners Group LP - 8,093,126 15 0.37% Windough (DE) LP - 7,486,024 16 0.34% Wal-Mart Stores Texas LLC - 6,610,615 17 0.30% SRB Partners LLC - 5,773,585 18 0.26% Target Corporation - 5,657,753 19 0.26% Total 554,569,617$ 10.48%251,173,387$ 11.44% Source: Central Appraisal District of Collin County web site (www.collincad.org) 2022 2012 250 01/24/2023 Item 3. CITY OF WYLIE, TEXAS TABLE 10 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (UNAUDITED) 112 Fiscal Taxes Levied Collections Year Ended for the Percentage in Subsequent Percentage September 30 Fiscal Year Amount of Levy Years Amount of Levy 2013 21,102,465$ 20,919,197$ 99.13%181,943$ 21,101,140$ 99.99% 2014 22,501,648 22,192,325 98.63%222,173 22,414,498 99.61% 2015 24,313,312 24,045,424 98.90%323,627 24,369,051 100.00% 2016 26,864,127 26,549,430 98.83%403,692 26,953,122 100.00% 2017 29,991,374 29,659,723 98.89%250,376 29,910,099 99.73% 2018 31,349,629 31,134,716 99.31%230,766 31,365,482 100.00% 2019 32,977,950 32,767,801 99.36%210,149 32,977,950 100.00% 2020 34,488,548 34,183,944 99.12%6,296 34,190,240 99.14% 2021 35,349,912 35,243,082 99.70%106,830 35,349,912 100.00% 2022 36,688,809 36,487,796 99.45%71,986 36,559,782 99.65% Collected Within the Fiscal Year of the Levy Total Collections to Date 251 01/24/2023 Item 3. CITY OF WYLIE, TEXAS TABLE 11 DIRECT AND OVERLAPPING SALES TAX RATE LAST TEN FISCAL YEARS (UNAUDITED) 113 City Wylie Economic Fiscal Direct Development Collin Year Rate Corporation County 2013 1.50%0.50%0.00% 2014 1.50%0.50%0.00% 2015 1.50%0.50%0.00% 2016 1.50%0.50%0.00% 2017 1.50%0.50%0.00% 2018 1.50%0.50%0.00% 2019 1.50%0.50%0.00% 2020 1.50%0.50%0.00% 2021 1.50%0.50%0.00% 2022 1.50%0.50%0.00% Note: The City sales tax rate includes the City sales tax rate of one percent and the blended component unit rate of one-half percent 252 01/24/2023 Item 3. CITY OF WYLIE, TEXAS TAXABLE SALES BY CATEGORY LAST TEN CALENDAR YEARS (UNAUDITED) 114 2013 2014 2015 2016 Construction 350,351$ 497,754$ 479,336$ 536,173$ Manufacturing 238,297 101,808 80,028 103,575 Transportation / Communications 653,107 291,838 179,077 212,058 Wholesale Trade 117,806 100,203 166,717 168,752 Retail Trade 2,912,081 3,303,378 3,633,909 4,169,961 Other 3,145,043 3,435,545 4,228,072 4,736,506 Total 7,416,685$ 7,730,526$ 8,767,139$ 9,927,025$ Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of revenue. The tax liability includes the City sales tax rate of one percent and the blended component unit rate of one-half percent. 253 01/24/2023 Item 3. TABLE 12 115 2017 2018 2019 2020 2021 2022 452,735$ 830,425$ 1,147,234$ 1,400,203$ 1,349,292$ 1,259,862$ 96,116 119,847 119,923 149,700 163,358 351,938 212,407 318,281 349,457 307,326 326,043 349,669 361,554 644,085 677,446 824,396 787,434 912,782 4,560,251 5,513,345 6,133,235 6,873,957 8,526,051 9,268,619 4,826,441 2,825,054 3,253,254 3,578,388 4,349,705 4,502,258 10,509,504$ 10,251,037$ 11,680,549$ 13,133,970$ 15,501,883$ 16,645,128$ 254 01/24/2023 Item 3. CITY OF WYLIE, TEXAS RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS (UNAUDITED) 116 General Combination Fiscal Obligation Tax/Revenue Certificates of Year Bonds Bonds Obligation 2013 81,432,742$ 13,673,829$ - 2014 78,121,976 12,789,364 - 2015 75,375,018 11,864,899 - 2016 83,016,024 1,925,435 - 2017 78,187,253 1,233,553 - 2018 73,139,939 9,115,985 - 2019 67,281,896 8,886,207 - 2020 61,128,854 8,561,429 - 2021 55,044,633 13,479,773 - 2022 54,794,863 12,990,606 - Business-type Activities General Water Combination Fiscal Obligation Revenue Tax/Revenue Year Bonds Bonds Bonds 2013 3,021,394 - 6,032,077 2014 2,329,667 - 5,706,367 2015 1,622,945 - 5,365,657 2016 6,025,224 - 324,947 2017 5,816,174 - 7,134,237 2018 4,875,035 - 7,388,900 2019 4,184,968 - 7,327,492 2020 3,574,899 - 7,216,084 2021 3,116,788 - 6,871,073 2022 2,619,076 - 6,543,956 (1) Details regarding the City's outstanding debt can be found in the notes to the financial statements. (2) See the Demographic and Economic Statistics table for population data. General Bonded Debt 255 01/24/2023 Item 3. TABLE 13 117 General Tax Leases, Obligation Revenue Contractual Loans and Financed Bonds Bonds Obligations Obligation Purchases 3,602,546$ 410,000$ 1,507,760$ 298,867$ 152,414$ 3,588,513 280,000 1,447,896 189,938 61,324 3,539,481 145,000 1,388,031 77,660 25,336 3,223,125 - 1,323,166 - - 2,911,894 - 1,258,333 - 892,734 2,559,435 - 1,193,436 - 678,036 2,220,091 - 1,123,571 - 457,778 1,870,746 - 1,053,706 - 542,066 1,511,401 - 978,841 - 237,027 1,152,057 - - 79,529 160,983 Total Percentage Contractual Financed Primary of Personal Per Obligations Purchases Government (1)Income Capita (2) - - 110,131,629 8.16%2,533 - - 104,515,045 7.37%2,371 - - 99,404,027 6.61%2,162 - - 95,837,921 6.13%2,027 - - 97,434,178 6.08%2,039 - - 98,950,766 5.36%1,903 - - 91,482,002 4.80%1,705 - 3,333,667 87,281,452 4.71%1,582 - 3,010,014 84,249,550 4.32%1,433 - 2,702,733 81,043,803 3.64%1,331 Other Governmental Activities Debt 256 01/24/2023 Item 3. CITY OF WYLIE, TEXAS TABLE 14 RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS (UNAUDITED) 118 General Percentage Fiscal Obligation Less: Restricted Net Bonded Actual Taxable Per Year Bonds for Debt Service Debt Value of Property Capita 2012 87,195,807$ 403,355 86,792,452$ 3.95%2,062 2013 88,056,682 379,477 87,677,205 3.86%2,016 2014 84,040,156 281,183 83,758,973 3.47%1,900 2015 80,537,444 470,789 80,066,655 3.06%1,742 2016 92,264,373 675,565 91,588,808 3.14%1,937 2017 86,915,321 820,559 86,094,762 2.59%1,802 2018 80,574,410 1,095,418 79,478,992 2.10%1,585 2019 73,686,955 1,265,295 72,421,660 1.70%1,393 2020 66,574,499 1,244,524 65,329,975 1.53%1,257 2021 59,672,822 1,122,215 58,550,607 1.20%1,062 2022 58,565,996 766,308 57,799,688 1.09%949 General Bonded Debt Outstanding 257 01/24/2023 Item 3. CITY OF WYLIE, TEXAS TABLE 15 DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT (UNAUDITED) 119 (4)Estimated Estimated Share of Debt Percentage Direct and Governmental Unit (3)Outstanding Applicable Overlapping Debt Debt Repaid with Property Taxes Wylie Independent School District 397,741,699$ (1)63.07%250,855,690$ Collin County 543,645,000 (1)3.23%17,559,734 Collin County Community College District 498,565,000 (1)3.23%16,103,650 Garland Independent School District 397,888,940 (1)0.35%1,392,611 Rockwall Independent School District 574,235,801 (1)0.66%3,789,956 Rockwall County 132,010,000 (1)0.57%752,457 Subtotal, Overlapping Debt 290,454,097 City Direct Debt (2)69,178,038 Total Direct and Overlapping Debt 359,632,135 Ratio of Direct and Overlapping Bonded Debt to Taxable Assessed Valuation 6.80% Per Capita Direct and Overlapping Debt 5,908$ (1) Source: Municipal Advisory Council of Texas (2) Excludes business-type activities debt. (3) Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businessess of the City of Wylie, Texas. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borrne by the residents and businessess should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. (4) The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of the various government's taxable assessed value that is within the government's boundaries and dividing it by the total taxable assessed value. 258 01/24/2023 Item 3. CITY OF WYLIE, TEXAS LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS (UNAUDITED) 120 2013 2014 2015 2016 Debt Limit 227,046,560$ 241,682,553$ 261,878,146$ 292,105,386$ Total Net Debt Applicable to Limit 77,384,144 75,018,154 72,168,010 79,238,061 Legal Debt Margin 149,662,416 166,664,399 189,710,136 212,867,325 Total Net Debt Applicable to the Limit As a percentage of Debt Limit 34.08%31.04%27.56%27.13% Legal Debt Margin Calculation for the Current Fiscal Year Assessed Value 5,289,616,023$ Debt Limit (10%) of Assessed Value)528,961,602 Debt Applicable to Limit: General Obligation Bonds 56,556,034 Less: Amount Set Aside for Repayment of General Obligation Debt (8,508,016) Total Net Debt applicable to Limit 48,048,018 Legal Debt Margin 480,913,584$ (1) Texas state law does not prescribe a debt limit; however, by custom, a practical economic debt limit of 10% of the assessed valuation is used. By law, the general obligation debt subject to the limitation may be offset by the amount set aside for repaying general obligation bonds. 259 01/24/2023 Item 3. TABLE 16 121 2017 2018 2019 2020 2021 2022 332,556,307$ 377,681,311$ 425,950,379$ 467,691,442$ 488,164,745$ 528,961,602$ 73,997,534 67,964,648 61,661,330 55,074,262 48,583,868 48,048,018 258,558,773 309,716,663 364,289,049 412,617,180 439,580,877 480,913,584 22.25%18.00%14.48%11.78%9.95%9.08% 260 01/24/2023 Item 3. CITY OF WYLIE, TEXAS TABLE 17 PLEDGED-REVENUE COVERAGE LAST TEN FISCAL YEARS (UNAUDITED) 122 Utility Less:Net Fiscal Service Operating Available Year Charges (1)Expenses (2)Revenue Principal Interest Total Coverage 2013 13,108,252$ 9,609,828$ 3,498,424$ 330,000$ 248,975$ 578,975$ 6.04 2014 13,767,869 10,395,146 3,372,723 345,000 235,475 580,475 5.81 2015 15,473,529 10,531,564 4,941,965 355,000 221,475 576,475 8.57 2016 15,997,794 11,849,326 4,148,468 370,000 211,638 581,638 7.13 2017 18,169,571 12,832,323 5,337,248 - 285,282 285,282 18.71 2018 19,431,713 14,434,320 4,997,393 50,000 240,019 290,019 17.23 2019 20,662,507 14,895,221 5,767,286 100,000 238,519 338,519 17.04 2020 23,047,261 15,809,435 7,237,826 310,000 234,419 544,419 13.29 2021 24,400,005 16,110,604 8,289,401 320,000 228,119 548,119 15.12 2022 27,371,622 17,720,047 9,651,575 330,000 218,319 548,319 17.60 (1) Includes total operating revenue of the Utility Enterprise Fund (2) Includes operating expenses of the Utility Enterprise Fund, less depreciation expense. (3) Debt service requirements includes principal and interest payments on revenue bonds. Water Revenue Bonds Debt Service (3) 261 01/24/2023 Item 3. 123 262 01/24/2023 Item 3. CITY OF WYLIE, TEXAS DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS (UNAUDITED) 124 2013 2014 2015 2016 Population (1)43,484 44,089 45,970 47,776 Personal Income (in thousands of dollars)1,349,874$ 1,417,550$ 1,504,632$ 1,579,381$ Per Capita Personal Income 31,043$ 32,152$ 32,731$ 33,058$ Median Age 31.7 31.7 31.7 31.7 Education Level in Years of Schooling (2) Less than high school graduate 16.1%16.1%16.1%16.1% High school graduate (or equivalent)23.5%23.5%23.5%23.5% Some college/associate's degree 28.5%28.5%28.5%28.5% Bachelor's degree 24.5%24.5%24.5%24.5% Masters, professional, or doctorate 6.7%6.7%6.7%6.7% School Enrollment 13,305 13,673 14,557 15,023 Unemployment (3)5.8%4.6%4.1%3.2% (1) Population estimate from City of Wylie website. (2) Education statistics for 2013-2020 per the 2010 U.S. Census; for 2021-2022 per the 2020 U.S. Census for population 25 years of age and older. (3) Unemployment rates from the Texas Workforce Commission website (www.twc.state.tx.us). 263 01/24/2023 Item 3. TABLE 18 125 2017 2018 2019 2020 2021 2022 50,152 52,003 53,653 55,156 59,028 60,876 1,682,796$ 1,845,898$ 1,823,484$ 1,855,062$ 1,959,848$ 2,226,053$ 33,554$ 35,496$ 33,987$ 33,633$ 33,202$ 36,567$ 31.7 33.2 33.3 33.4 33.6 33.5 16.1%16.1%16.1%16.1%7.8%7.8% 23.5%23.5%23.5%23.5%21.8%21.8% 28.5%28.5%28.5%28.5%34.1%34.1% 24.5%24.5%24.5%24.5%25.8%25.8% 6.7%6.7%6.7%6.7%10.5%10.5% 15,709 16,466 17,164 17,392 18,159 18,703 3.4%3.2%2.9%6.7%6.20%2.70% 264 01/24/2023 Item 3. CITY OF WYLIE, TEXAS TABLE 19 PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO (UNAUDITED) 126 Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment Wylie ISD 3,000 1 22.84%1,757 1 21.66% North Texas Municipal Water Dist 840 2 6.39%550 3 6.78% Extruders / Tower Extrusion 550 3 4.19%- - 0.00% City of Wylie 436 4 3.32%311 5 3.83% Wal-Mart 397 5 3.02%320 4 3.94% Sanden Intl. (USA), Inc.300 6 2.28%885 2 10.91% Avanti Windows & Doors 275 7 2.09%- - 0.00% Kroger 252 8 1.92%255 6 3.14% Home Depot 240 9 1.83%- - 0.00% Target 225 10 1.71%223 8 2.75% Total 6,515 49.59%4,301 53.02% Source: Wylie Economic Development Corporation 2022 2013 265 01/24/2023 Item 3. CITY OF WYLIE, TEXAS TABLE 20 FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS (UNAUDITED) 127 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Function/Program General Government Management Services 13 13 14 14 15 16 18 18 18 20 Finance 9 9 9 9 9 9 9 9 9 8 Planning 5 5 5 6 6 6 5 3 3 3 Building 8 6 6 6 6 6 6 6 6 6 Other 7 7 6 7 8 9 9 14 14 15 Police Officers 48 49 55 63 63 63 66 70 70 70 Civilians 7 8 8 8 9 11 11 12 17 21 Fire Firefighters and Officers 47 45 45 49 52 52 53 57 62 68 Civilians 3 3 3 3 3 3 3 4 4 4 Animal Control 5 6 7 7 7 8 8 8 8 8 Dispatch 11 10 11 12 13 13 14 14 15 16 Streets 11 11 13 16 17 18 18 19 20 21 Other Public Works Engineering 3 3 3 3 3 3 - - - 6 Other 11 11 11 11 11 11 14 14 15 11 Parks and Recreation 38 43 44 48 49 51 51 57 57 62 Library 21 22 24 24 25 27 27 27 27 27 Water 15 15 15 15 19 19 19 16 16 16 Wastewater 6 6 6 6 6 7 9 11 12 12 EDC 2 2 2 3 3 3 3 3 3 4 Total 262 274 287 310 322 335 343 362 377 400 Source: City of Wylie annual budget book Full-Time Equivalent Employees as of Year End 266 01/24/2023 Item 3. CITY OF WYLIE, TEXAS OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS (UNAUDITED) 128 2013 2014 2015 2016 Function/Program General Government Building Permits Issued 279 298 484 433 Building Permits Value (thousands) (1)71,009$ 113,783$ 106,488$ 107,516$ Police Physical Arrests 1,354 794 973 1,385 Violations Issued 2,473 2,435 2,691 4,188 Warrants Issued 874 808 919 701 Fire Emergency Responses 3,456 3,527 4,168 4,311 Fires Extinguished 84 49 62 89 Inspections 1,251 2,380 1,980 2,039 Other Public Works Street Resurfacing (miles)3 3 2 4 Potholes Repaired 5 28 18 43 Parks and Recreation Athletic Field Permits Issued 216 113 28 28 Pavilion/Gazebo Permits Issued 173 167 151 202 Recreation Facility Attendance 266,834 267,066 286,357 328,495 Baseball/Softball Fields 24 24 26 26 Soccer/Football Fields 20 20 20 21 Library Volumes in Collection 94,868 99,744 103,544 109,392 Water New Connections 248 125 1,240 1,219 Water Main Breaks 18 7 3 4 Average Daily Consumption (gallons)4,005,371 3,106,694 3,625,151 3,719,076 Source: City Departments (1) Legislature passed a law that prohibits asking for value on permit application. * Covid related reduction in services 267 01/24/2023 Item 3. TABLE 21 129 2017 2018 2019 2020 2021 2022 667 617 443 500 577 402 201,540$ 155,666$ 242,535$ N/A N/A N/A 1,026 1,333 815 666 710 799 4,228 2,812 2,117 1,791 2,065 1,724 1,492 870 642 250 159 790 4,478 4,755 4,879 4,840 5,708 5,726 168 72 85 107 109 157 2,150 2,724 2,478 3,242 2,948 2,319 5 3 3 0.25 0.9 2 44 81 138 183 283 403 63 41 37 28 62 116 153 165 153 75 163 142 367,665 462,309 509,083 249,028*285,110*330,187 26 26 26 26 26 26 21 21 21 21 21 21 114,715 140,905 151,864 156,824 166,059 167,444 678 139 165 252 268 321 - 1 7 6 6 5 3,543,448 4,881,666 3,980,000 3,791,394 3,882,015 3,463,902 268 01/24/2023 Item 3. CITY OF WYLIE, TEXAS TABLE 22 CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS (UNAUDITED) 130 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Function/Program Police Stations 1 1 1 1 1 1 1 1 1 1 Fire Stations 3 3 3 3 3 3 3 3 3 4 Other Public Works Streets (miles)194 194 200 205 212 243 250 250 272 250 Alleys (miles)41 41 42 42 42 42 42 42 26 33 Traffic Signals 14 17 21 24 25 26 26 26 27 27 Parks and Recreation Acreage 668 877 886 886 916 910 910 910 910 910 Playgrounds 14 14 15 17 18 18 19 19 19 23 Recreation Facilities 2 3 4 4 4 4 4 4 4 4 Water Water Mains (miles)157 157 157 158 161 161 185 225 198 188 Fire Hydrants 1,554 1,608 1,690 1,707 1,789 1,818 1,857 1,921 2,289 1,938 Number of service connections 11,946 12,894 14,134 15,353 16,031 16,171 17,103 17,499 17,470 17,643 Wastewater Sanitary Sewers (miles)173 173 178 183 188 204 228 228 230 219 Education Wylie ISD Campuses in Wylie 19 19 19 20 20 20 20 20 20 20 Source: City Departments 269 01/24/2023 Item 3. Weaver and Tidwell, L.L.P. 1406 Wilson Road, Suite 100 | Conroe, Texas 77304 Main: 936.756.8127 CPAs AND ADVISORS | WEAVER.COM Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Honorable Mayor and Members of the City Council City of Wylie, Texas We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of City of Wylie, Texas (the City), as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated January 18, 2023. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 270 01/24/2023 Item 3. Honorable Mayor and Members of the City Council City of Wylie 2 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. WEAVER AND TIDWELL, L.L.P. Conroe, Texas January 18, 2023 271 01/24/2023 Item 3. City of Wylie City Council Meeting January 24, 2023 272 01/24/2023 Item 3. Overview Introduction Audit Process Audit Results Required Communications Financial Highlights Discussion 2 273 01/24/2023 Item 3. Weaver National Firm, Local Touch At Weaver, there are no “one-size-fits-all” solutions. We combine leading technical knowledge with specific industry experience to provide highly customized services tailored to each client’s needs. Best of the Best Firms (2020) 274 01/24/2023 Item 3. 6 Engagement Leadership John DeBurro, CPA Partner, Assurance Services 20+ years of public accounting experience Dedicated to serving public sector clients GFOA Special Review Committee Member 15 years of public accounting and public sector experience Dedicated to serving public sector clients Available Throughout the Year to Discuss Issues Elisa Gilbertson, CPA Senior Manager, Assurance Services 275 01/24/2023 Item 3. Audit Process Audit Process 276 01/24/2023 Item 3. | 6 Engagement Timeline Continuous Communication Initial Audit Planning Interim Fieldwork Sept 19 -23 Final Fieldwork Nov 14–Dec 16 Audit Opinion Issued January 18 Council Meeting January 24 Discuss Developments/ Issues 277 01/24/2023 Item 3. Audit Process •The audit was performed in accordance with Generally Accepted Auditing Standards (GAAS), and Generally Accepted Government Auditing Standards (GAGAS). •The audit process was a risk-based approach in which we identified potential areas of risk that could lead to material misstatement of the financial statements. We tailored our audit programs and resources to specifically address areas of risk, such as: •Revenue recognition and related receivables •Capital projects, purchasing and compliance with bidding procedures •Payables, accrued liabilities, and expenditures •Cash and Investments •Long-Term Debt •Control testing over purchases and payroll | 7 278 01/24/2023 Item 3. Audit Process •Walkthroughs of accounting controls over significant transaction cycles: A.Cash Disbursements and Purchases B.Payroll Disbursements (including TMRS data) C.Municipal Court Receipts D.Utility Billing Receipts E.Other receipts including Parks and Recreation F.Budget and Financial Close Process •Tests of compliance with the Public Funds Investment Act •Control testing over cash disbursements and payroll | 8 Interim fieldwork and risk assessment were performed in September 2022. Procedures included: 279 01/24/2023 Item 3. Audit Process Testing account balances and current year activity using a combination of: analytics, vouching of material transactions, and sampling Evaluating estimates for reasonableness Assistance with preparation of the annual comprehensive financial report (ACFR) Determination that no Single Audit was required in 2022. | 9 Final fieldwork-performed in November and December 2022 -Procedures included: 280 01/24/2023 Item 3. Audit Results 281 01/24/2023 Item 3. 11 Auditor Results •We issued the Independent Auditor’s Report on the financial statements –Unmodified Opinion •We issued the Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards –No material weaknesses noted 282 01/24/2023 Item 3. 12 Auditor Communications for the year ended September 30, 2022 283 01/24/2023 Item 3. 13 Required Communications to Those in Charge of Governance Communication Results Generally accepted auditing standards The financial statements are the responsibility of the City. Our audit was designed to provide for reasonable rather than absolute assurance that the financial statements are free of material misstatement. Our responsibility is to express an opinion about whether the financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. The audit of the fiscal year 2022 financial statements is complete and we have issued an unmodified opinion. 284 01/24/2023 Item 3. 14 Required Communications to Those in Charge of Governance Communication Results Generally accepted government auditing standards In addition to the GAAS responsibilities, we are required to issue a written report on our consideration of internal controls and identify significant deficiencies, including material weaknesses, if any. Our reports do not provide assurance on internal controls. We design our audit to provide reasonable assurance of detecting material misstatements resulting from noncompliance with provisions of contracts or grant agreements that have a direct or material effect on the financial statements. We issue a written report on the results of these procedures; however, our report does not express an opinion on compliance. No findings noted. 285 01/24/2023 Item 3. Required Communications to Those in Charge of Governance Communication Results Unusual transactions and the adoption of new accounting principles The significant accounting policies used by the City are described in Note 1 to the financial statements. Pronouncements implemented in 2022 included GASB Statement No. 87. The implementation of GASB Statement No. 87 established right-to-use lease assets and lease liabilities (Lessee) to the City’s financial statements. Also adopted was SAS 134, which changed the look and layout of the opinion letter. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. | 15 286 01/24/2023 Item 3. Required Communications to Those in Charge of Governance Communication Results Fraud and illegal acts No material errors, irregularities, or illegal acts were noted. Material weakness in internal control No material weaknesses noted. Other information contained in documents containing audited financial statements We provided an “in relation to opinion” on supplementary information accompanying the financial statements. We performed limited procedures on the required supplementary information. We did not provide any assurance on this information. The Introductory and Statistical sections were both unaudited. Management judgments and accounting estimates Management’s estimates of net pension and OPEB liabilities, allowance for uncollectible receivables, and estimated useful lives for capital assets were evaluated and determined to be reasonable in relation to the financial statements as a whole. | 16 287 01/24/2023 Item 3. Required Communications to Those in Charge of Governance Communication Results Difficulties encountered No difficulties or disagreements arose during the course of our audit. Management representations We requested certain representations from management that were included in the management representation letter. Management consultations We are not aware of management consulting with other accountants for a second opinion. Auditor independence No independence issues noted. Audit adjustments Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management.There were no passed adjustments noted during the audit. We made no material audit adjustments as a result of our audit procedures. | 17 288 01/24/2023 Item 3. 18 Financial Highlights 289 01/24/2023 Item 3. 19 Financial Highlights Comparison of Revenues by Source Governmental Funds Revenues for the FY 2022 totaled $65.9 million, a $2.5 million or 4.0% increase. This increase is attributed primarily to a $1.12 million increase in sales taxes and a $1.09 million increase in ad valorem taxes. 56% 20% 4% 3%7%8%2% FY 2022 Revenues Ad valorem taxes Sales taxes Franchise fees Licenses and permits Intergovernmental Service fees Other income 56% 19% 4% 3%8%8%2% FY 2021 Revenues Ad valorem taxes Sales taxes Franchise fees Licenses and permits Intergovernmental Service fees Other income 290 01/24/2023 Item 3. 20 Financial Highlights Comparison of Governmental Funds Revenues by Source (3-year comparison in millions of dollars) $36.7 $12.9 $2.9 $2.2 $4.6 $5.1 $1.5 $35.6 $11.8 $2.7 $2.0 $5.2 $4.9 $1.2 $34.3 $10.0 $3.0 $1.9 $2.8 $4.3 $1.1 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 2022 2021 2020 291 01/24/2023 Item 3. 21 Financial Highlights Comparison of Governmental Expenditures by Fund (In millions of dollars) $46.7 $8.9 $7.6 $4.0 Fiscal Year 2022 General Fund Debt Service Fund Capital Projects Fund Nomajor Funds $42.4 $8.6 $5.0 $4.0 Fiscal Year 2021 General Fund Debt Service Fund Capital Projects Fund Nomajor Funds Governmental Funds Expenditures for FY2022 totaled $67.2 million, a $7.2 million or 12.0% increase. •Capital outlay expenditures increased $2.7 million. •Public safety expenditures increased $2.5 million. •Community service costs increased by $0.8 million 292 01/24/2023 Item 3. 22 Financial Highlights Comparison of Governmental Funds Expenditures * *(3-year comparison in millions of dollars) $11.6 $25.5 $1.0 $3.6 $8.5 $7.6 $9.4 $11.3 $23.0 $1.1 $2.9 $7.7 $4.9 $9.1 $10.7 $22.0 $1.0 $3.1 $8.4 $13.9 $9.1 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 General Government Public Safety Urban Development Streets Community Service Capital Outlay Debt service 2022 2021 2020 293 01/24/2023 Item 3. 23 Financial Highlights Fund Balances Governmental Funds’ Fund Balances The City’s governmental funds reported a combined ending fund balance of $66.2 million at September 30, 2022 as follows: •General Fund $31,684,260 •Debt Service 842,926 •Capital Projects 24,288,325 •Other Funds 9,392,601 $66,208,112 47.9% 1.2%36.7% 14.2%General Fund Debt Service Fund Capital Projects Fund Nonmajor Funds •Governmental funds’ fund balance increased by $9.6 million, primarily due to a $7.7 million increase in the Capital Projects Fund, the result of $12.0 million general obligation refunding and improvement bonds issued, $5.2 million of which will fund capital projects. •Unassigned fund balance in the General Fund ($30.4 million) represents 65.2% of general fund expenditures.294 01/24/2023 Item 3. General Fund Budget vs Actual | 24 $(10,000,000) $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 revenues expenditures other 46,356,998 50,473,168 2,518,645 47,014,335 50,947,964 (4,488,027) 48,739,336 46,646,192 (1,647,649) General Fund Budget and Actual original amended actual Overall, favorable budgetary variance of $8.9 million: •Revenues were over budget budget by $1.7 million. •Expenditures were $4.3 million below budget. •Other Financing Uses (net) varied from budget by $2.8 million 295 01/24/2023 Item 3. Water and Sewer Fund- Current and Prior Year | 25 Net position increased by $7.5 million over prior year •Operating revenues increased $3.0 million –primarily due to rate increases and increased consumption. •Operating expenses increased by $1.8 million –primarily due to a $560K increase in waste water treatment costs. •Transfers and contributions –a slight decrease of $200k –primarily due to a decrease in impact fees. 2022 2021 $ Change % Change Operating revenues 27,371,622$ 24,400,005$ 2,971,617$ 12% Operating expenses (20,526,535) (18,697,568) 1,828,967 10% (Net) Nonoperating revenue (expense)(91,910) (144,014) 52,104 -36% Transfers and contributions 700,997 901,474 (200,477) -22% Change in net position 7,454,174$ 6,459,897$ 994,277 15% Statement of Revenues, Expenses and Changes in Net Position- Water and Sewer Fund 296 01/24/2023 Item 3. 26 We appreciate the opportunity to work with City of Wylie and look forward to our continued relationship. 297 01/24/2023 Item 3. Contact Us John DeBurro, CPA Engagement Partner 972.448.6970 | john.deburro@weaver.com Elisa Gilbertson, CPA Audit Senior Manager 972.448.6955 | elisa.gilbertson@weaver.com Discussion 298 01/24/2023 Item 3. Wylie City Council AGENDA REPORT Department: City Secretary Account Code: Prepared By: Stephanie Storm Subject Consider, and act upon, the acceptance of the resignation of Tim Gilchrist and the appointment of a new board member to the City of Wylie Economic Development Corporation to fill the term of January 2023 to June 30, 2023. Recommendation Motion to approve Item as presented. Discussion Staff reached out to eight applicants that listed Economic Development Corporation as a preference on their application last year and met the qualifications. The following applicants replied back that they are still interested and willing to serve. Listed below is the preference that they chose for the Economic Development Corporation on their application, their name, and the board they were appointed to and currently serve on.  Preference 1 - Harold Smith – has served in a position of executive management of a company and has served in a professional capacity (appointed to Zoning Board of Adjustment)  Preference 2 – Gerald Dyson – meets all three qualifications (appointed to Parks and Recreation Board)  Preference 2 – John Straube Jr – has served in a position of executive management of a company & has served in a professional capacity (appointed to Construction Code Board) 299 01/24/2023 Item 4. 300 01/24/2023 Item 4. First Name* Last Name* Gerald Please provide your full legal first and last name. Dyson Occupation Holistic Health Practitioner, Nutritionist; Business Owner, DysonFit LLC, (DBA CrossFit Alanis), North Texas Equipment Services LLC If applicable, please list any work experience that may be beneficial to the board you are applying for. 12+ years Christian business owner, father and leader in many mentorship, fellowship and ministry positions. Address in ETJ?* Wylie Resident* Yes No How long have you been a Wylie resident? Years * Months* 2 9 Registered Voter* Yes No Yes No Currently Serving* Yes No Boards and Commission Preferences Board Preference 1: * Parks & Recreation Board Board Preference 2: Wylie Economic Development Corporation Board 2 Qualification* Serve, or have served, as a CEO, in a position of executive management, and in a professional capacity. Board Preference 3: Library Board Please indicate briefly why you would like to serve as a Boards and Commission member: * As a leader in business, family, church and community I have an obligation to my fellow citizens to offer my experience, guidance and commitment to excellence in a way that benefits our city. Panel Notes: 301 01/24/2023 Item 4. 302 01/24/2023 Item 4.