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Agenda Packet TC 03/27/2018 - Joint Session
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``````````"34," ("`````````````````````` ";9<=N ```````````````````````````````` " &0'/8"``````````````````````````` Town CouncilPage 4 of 271Meeting Date: March 27, 2018 Town of Trophy Club 1 Trophy Wood Drive Trophy Club, Texas 76262 Legislation Details (With Text) File #:2018-126-T Version:1 Name: Type:Agenda Item Status:Regular Session File created:2/27/2018 In control:Town Council On agenda:3/27/2018 Final action: Title:Consider and take appropriate action regarding a Proclamation of the Town Council recognizing November 12-18, 2018, as World Antibiotic Resistance Awareness Week in Trophy Club; and providing an effective date (Mayor Sanders). Attachments:PRO 2018-04 - World Antibiotic Resistance Awareness Week.pdf HOSA Presentation II.pdf DateVer.Action ByActionResult Agenda Item No. 1: ConsiderandtakeappropriateactionregardingaProclamationoftheTownCouncilrecognizingNovember12-18,2018, as World Antibiotic Resistance Awareness Week in Trophy Club; and providing an effective date (Mayor Sanders). Town CouncilPage 5 of 271Meeting Date: March 27, 2018 TOWNOFTROPHYCLUB,TEXAS PROCLAMATIONNO.2018-04 APROCLAMATIONOFTHETOWNCOUNCILOFTHETOWNOF TROPHYCLUB,TEXAS,RECOGNIZINGNOVEMBER 12-18, 2018AS WORLDANTIBIOTICRESISTANCEAWARENESSWEEKINTROPHY CLUB;ANDPROVIDINGANEFFECTIVEDATE. WHEREAS, antibiotic resistance has become a global health dilemma reaching within the United States; and WHEREAS, at least 2 million people have been killed because of antibiotic overdose, and antibiotics abuse isthe cause of 1 out of 5 emergency department visits for Adverse Drug Events (ADE’s) and 7 of the top 10 drugs involved in ADE’s leading to emergency room visits are antibiotics; and WHEREAS, November 12ththrough November 18thhas been declared as World Antibiotic Resistance Awareness Week, by the World Health Organization (WHO), where people in Trophy Club will be informed and made aware of antibiotic resistance and how to stop it; and WHEREAS, the Town of Trophy Club seeks to promote the good health of the townspeople and by making hospitals, schools and the general public more aware there will be less deaths and overdoses in the near future; and WHEREAS, by providing Antibiotic Resistance Awareness and allowing the community to be informed on the dangerous issue regardless of social or economic status, education, gender, origin, religious belief, age, lifestyle abilities, the enlightenment of knowledge is shown in the community; and WHEREAS, theStop the Resistance campaign was created to initiate student- led and community-wide awareness that will helpfund additional research. Through this campaign, students, their families and our residents will be called to action to change theircommunity and the world. NOW,THEREFORE, IMAYORC. NICKSANDERS,INCONJUNCTIONWITH , THETOWNCOUNCILOFTHETOWNOFTROPHYCLUB,TEXAS,DOHEREBY PROCLAIM: NOVEMBER 12-18, 2018AS WORLDANTIBIOTICRESISTANCEAWARENESSWEEK PASSEDANDAPPROVED bytheTownCounciloftheTownofTrophyClub, Texas,this27thdayofMarch2018. __________________________ ____________________________ HollyFimbres,TownSecretary C.NickSanders,Mayor TownofTrophyClub,Texas TownofTrophyClub, Texas Town CouncilPage 6 of 271Meeting Date: March 27, 2018 Town of Trophy Club 1 Trophy Wood Drive Trophy Club, Texas 76262 Legislation Details (With Text) File #:2018-108-T Version:1 Name: Type:Agenda Item Status:Executive Session File created:2/26/2018 In control:Town Council On agenda:3/27/2018 Final action: Title:Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551 (Texas Open Meetings Act), the Council will convene into executive session to discuss the following: A)Section 551.087 Deliberation regarding Economic Development Negotiations under Subsection (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 and Subsection (2) to deliberate the offer of a financial or other incentive to a business prospect that the Town seeks to have locate within the territory of the Town: Potential Projects and Incentives (T. Class) Attachments: DateVer.Action ByActionResult Agenda Item No. 2: PursuanttothefollowingdesignatedsectionsoftheTexasGovernmentCode,Annotated,Chapter551(TexasOpen Meetings Act), the Council will convene into executive session to discuss the following: A)Section551.087DeliberationregardingEconomicDevelopmentNegotiationsunderSubsection(1)todiscussor deliberateregardingcommercialorfinancialinformationthatthegovernmentalbodyhasreceivedfromabusiness prospectthatthegovernmentalbodyseekstohavelocate,stay,orexpandinorneartheterritoryofthegovernmental bodyandwithwhichthegovernmentalbodyisconductingeconomicdevelopmentnegotiationsandSubsection(2)to deliberatetheofferofafinancialorotherincentivetoabusinessprospectthattheTownseekstohavelocatewithin the territory of the Town: Potential Projects and Incentives (T. Class) Town CouncilPage 14 of 271Meeting Date: March 27, 2018 Town of Trophy Club 1 Trophy Wood Drive Trophy Club, Texas 76262 Legislation Details (With Text) File #:2018-109-T Version:1 Name: Type:Agenda Item Status:Regular Session File created:2/26/2018 In control:Town Council On agenda:3/27/2018 Final action: Title:Consider and take appropriate action regarding the Executive Session (H. Fimbres). Attachments: DateVer.Action ByActionResult Agenda Item No. 3: Consider and take appropriate action regarding the Executive Session (H. Fimbres). Town CouncilPage 15 of 271Meeting Date: March 27, 2018 Town of Trophy Club 1 Trophy Wood Drive Trophy Club, Texas 76262 Legislation Details (With Text) File #:2018-110-T Version:1 Name: Type:Agenda Item Status:Regular Session File created:2/26/2018 In control:Town Council On agenda:3/27/2018 Final action: Title:Receive Town Manager Class' update and provide input regarding the following (T. Class): ·Back to Nature Event ·Staffing Attachments: DateVer.Action ByActionResult Agenda Item No. 4: Receive Town Manager Class' update and provide input regarding the following (T. Class): Back to Nature Event Staffing Town CouncilPage 16 of 271Meeting Date: March 27, 2018 Town of Trophy Club 1 Trophy Wood Drive Trophy Club, Texas 76262 Legislation Details (With Text) File #:2018-112-T Version:1 Name: Type:Agenda Item Status:Consent Agenda File created:2/26/2018 In control:Town Council On agenda:3/27/2018 Final action: Title:Consider and take appropriate action regarding the Town Council Regular Session Minutes dated February 27, 2018 (H. Fimbres). Attachments:Draft TC Regular Session Minutes February 27, 2018.pdf DateVer.Action ByActionResult Agenda Item No. 5: ConsiderandtakeappropriateactionregardingtheTownCouncilRegularSessionMinutesdatedFebruary27,2018(H. Fimbres). Town CouncilPage 17 of 271Meeting Date: March 27, 2018 TOWN OF TROPHY CLUB TOWN COUNCIL REGULAR SESSION MINUTES TUESDAY, FEBRUARY 27, 2018, 7:00 P.M. LOCATION: 1 TROPHY WOOD DRIVE, TROPHY CLUB, TEXAS COUNCIL CHAMBERS The Town Council of the Town of Trophy Club, Texas, met in a Regular Session on Tuesday, February 27, 2018. The meeting was held within the boundaries of the Town and was open to the public. TOWN COUNCIL MEMBERS PRESENT: C. Nick Sanders Mayor Rhylan Rowe Mayor Pro Tem, Place 3 Eric Jensen Council Member, Place 2 Tim Kurtz Council Member, Place 4 Greg Lamont Council Member, Place 5 Philip Shoffner Council Member, Place 6 TOWN COUNCIL MEMBERS ABSENT: Alicia L. Fleury Council Member, Place 1 STAFF PRESENT: Tom Class Town Manager Mike Pastor Information Technology Manager Mike PastorMike PastorInformation Technology Manager David Dodd Town Attorney Jonathan Phillips Director of Administrative Services Jonathan Phillips Jonathan Phillips Director of Administrative Services Holly Fimbres Town Secretary/RMO Brian TenEyck Recreation Superintendent Brian TenEyckBrian TenEyckRecreation Superintendent Patrick Arata Police Chief Tommy Uzee Director of Community Development Director of Community Development Tommy Uzee Tommy Uzee Director of Community Development Wade Carroll Fire Chief Steve Zieverink Information Technology Specialist Steve ZieverinkSteve Zieverink Information Technology SpecialistInformation Technology Specialist Tony Jaramillo Director of Parks and Recreation Director of Parks and RecreationDirector of Parks and Recreation Mayor Sanders announced the date of Tuesday, February 27, 2018, called the Town Council to order and announced the date of TuesdayFebruary February called the Town Council to order and 27, 2018 announced the date of Tuesday , , announced a quorum at 7:00 p.m. p.mp.m .. The Invocation was offered by Fire Chief Carroll. Fire Chief CarrollFire Chief Carroll offered byoffered by . The Pledges to the American Flag and Texas Flag were led by Alex Reyes with Boy Scout Troop 168. Texas FlagTexas Flagwere lwere l The Pledges to the American FlagThe Pledges to the American Flagand ed byed by and CITIZEN PRESENTATIONS CITIZEN PRESENTATIONS CITIZEN PRESENTATIONS This is an opportunity for citizens to address the Council on any matter whether or not it is posted on the agenda. This is an opportunity for citizens to address the Council on any matter whether or not itThis is an opportunity for citizens to address the Council on any matter whether or not it The Council is not permitted to take action on or discuss any presentations made to the Council at this time The Council is not permitted to take action on or discuss anyThe Council is not permitted to take action on or discuss any concerning an item not listed on the agenda. The Council will hear presentations on specific agenda items prior to concerning an item not listed on theconcerning an item not listed on theagenda. The Council will hear presentations on specific agenda items prior to agenda. The Council will hear presentations on specific agenda items prior to the Council addressing those items. You may speak up to four (4) minutes or the time limit determined by the Council addressing those items. You may speak up to Council addressing those items. You may speak up to Mayor or presiding officer. To speak during this item you must complete the Speaker's form that includes the Mayor or presiding officer. To speak during this item you mustMayor or presiding officer. To speak during this item you must topic(s) of your statement. Topics of presentation should be limited to matters over which the Council has authority. topic(s) of your statement. Topics oftopic(s) of your statement. Topics of There were no citizen presentations. There were no citizen presentations.There were no citizen presentations. ANNOUNCEMENTS AND REPORTS 1. Receive Town Manager Class' update and provide input regarding the following (T. Class): Staffing – Introduction of newly hired Recreation Superintendent, Brian TenEyck, who previously served as the Recreation Superintendent for the City of Watauga for 10 years, with a total of 16 years of service in their Parks and Recreation Department. Also, interviews were being scheduled for the two Police Captain positions. Capital Improvement Project – Notice to proceed would be provided to the contractor on March 12th for the paving and drainage improvements project of Indian Creek Drive and Phoenix Drive. Additionally, a Public Citizens meeting was scheduled for February 28th at 7:00 p.m. for the purpose of providing citizens an opportunity to inquire about the project. Town CouncilPage 18 of 271Meeting Date: March 27, 2018 Mayor Sanders announced that Steve Flynn, an unopposed candidate for election to office on the Trophy Club Municipal Utility District No. 1 Board of Directors, was in attendance. 2. Receive Town Council Liaison update; discussion of same (H. Fimbres): *Parks and Recreation Board, February 19, 2018 Council Liaison - Council Member Philip Shoffner Council Member Shoffner advised that the Parks and Recreation Board discussed reinstalling the dump bucket feature at the Splash Pad and pursuing a grant for Musco lighting at Harmony Park Fields 1, 2, and 4 (both items would be presented to Council at a future meeting). The Board also discussed creating additional adult leagues for additional adult leagues for additional adult leagues for flag football and three-on-three basketball. Additionally, the Board created a subcommittee to review the Master Additionally, the Board created a subcommittee to review the Additionally, the Board created a subcommittee to review the Plan for Trophy Club Park. CONSENT AGENDA All matters listed as Consent Agenda are considered to be routine by the Town Council and will be enacted by one All matters listed as Consent Agenda are considered to be routine by the Town CouncilAll matters listed as Consent Agenda are considered to be routine by the Town Counciland will be enacted by one and will be enacted by one motion. There will not be a separate discussion of these items. If discussion is desired, that item will be removed items. If discussion is desired, that item will be removed items. If discussion is desired, that item will be removed from the consent agenda and will be considered separately. 3. Consider and take appropriate action regarding the Town Council Regular Session Minutes dated February Consider and take appropriate action regarding the Town Council Regular Session Minutes dated February Consider and take appropriate action regarding the Town Council Regular Session Minutes dated February 13, 2018 (H. Fimbres). (Town Secretary Note: Approved as presented in the Town Council agenda packet) Town Secretary Note: Approved as presented in the Town Council agenda packetTown Secretary Note: Approved as presented in the Town Council agenda packet 4. Consider and take appropriate action regarding a Requisition Request for procurement of a 2018 Ford F550 Consider and take appropriate action regarding a Requisition Request for procurement of a 2018 Ford F550 Consider and take appropriate action regarding a Requisition Request for procurement of a 2018 Ford F550 Road Rescue Ambulance for operations in the Fire Department; and authorizing the Mayor or his designee Road Rescue Ambulance for operations in the Fire Department; and authorizing the Mayor or his designee Road Rescue Ambulance for operations in the Fire Department; and authorizing the Mayor or his designee to execute all necessary documents (W. Carroll). to execute all necessary documents (W. Carroll).to execute all necessary documents (W. Carroll). Motion: Motion made by Mayor Pro Tem Rowe, seconded by Council Member Jensen, to approve the Consent Agenda seconded by seconded by Council MemberCouncil Member RoweJensenJensen , Items 3 and 4. Motion passed unanimously 6-0-0. 6-0-0. 6-0-0. REGULAR SESSION REGULAR SESSIONSESSION 5. Consider and take appropriate action regarding accepting the Certification of Unopposed Candidates form Consider and take appropriate action regarding accepting the Certification of Unopposed Candidates form Consider and take appropriate action regarding accepting the Certification of Unopposed Candidates form and approving an Ordinance of the Town repealing Ordinance No. 2018-01, ordering and calling a Joint and approving an Ordinance of the Town repealing Ordinance No. 2018and approving an Ordinance of the Town repealing Ordinance No. 2018 General Election for the Town of Trophy Club to be held on May 5, 2018 for the purpose of electing one (1) General Election for the Town of Trophy Club to be held on May 5, 2018 for the purpose of electing one (1) General Election for the Town of Trophy Club to be held on May 5, 2018 for the purpose of electing one (1) Councilmember for Place No. 3 and one (1) Councilmember for Place No. 4 to the Town Council each for a Councilmember for Place No. 3 and one (1) CounciCouncilmember for Place No. 3 and one (1) Counci term of three (3) years; declaring unopposed candidates elected; canceling the Joint General Election; term of three (3) years; declaring unopposed candidates elected; canceling the Joint General Election; term of three (3) years; declaring unopposed candidates elected; canceling the Joint General Election; providing for ballot language; providing for issuance of Certificates of Election; and providing an effective providing for ballot language; providing for issuance of Certificates of Election; and providing aproviding for ballot language; providing for issuance of Certificates of Election; and providing a date (H. Fimbres). date (H. Fimbres).date (H. Fimbres). Town Secretary Fimbres advised that since the Town would be conducting a separate election at the same time as Town Secretary FimbTown Secretary Fimbes advised that es advised that r the cancelled election, the declared elected candidates would be listed separately on the ballot under the heading the cancelled election, the declared elected candidates the cancelled election, the declared elected candidates “Unopposed Candidates Declared Elected” but no votes would be cast in connection with the candidates. “Unopposed Candidates Declared Elected” but no votes would be cast in connection with the candidates.“Unopposed Candidates Declared Elected” but no votes would be cast in connection with the candidates. Motion: Motion made by Mayor Pro Tem Rowe, seconded by Council Member Kurtz, to accept the Certification of Unopposed Candidates form and approve Ordinance No. 2018-05, repealing Ordinance No. 2018-01, ordering and calling a Joint General Election for the Town of Trophy Club to be held on May 5, 2018 for the purpose of electing one (1) Councilmember for Place No. 3 and one (1) Councilmember for Place No. 4 to the Town Council each for a term of three (3) years; declaring unopposed candidates elected; canceling the Joint General Election; providing for ballot language; providing for issuance of Certificates of Election; and providing an effective date of February 27, 2018. Motion passed unanimously 6-0-0. Town Council Minutes February 27, 2018 Page 2 of 4 Town CouncilPage 19 of 271Meeting Date: March 27, 2018 6. Consider and take appropriate action regarding the 2018 Council Meeting Schedule (Council Member Jensen and Council Member Kurtz). Town Secretary Fimbres remarked that Staff was proposing to cancel the March 13th, July 10th, November 27th, and December 25th Council meetings. Motion: Motion made by Mayor Pro Tem Rowe, seconded by Council Member Jensen, to approve the 2018 Council Meeting Schedule as presented in the agenda packet. Motion passed unanimously 6-0-0. 7. Discussion of items for Future Agendas to include agenda items for consideration on the March 27, 2018 Discussion of items for Future Agendas to include agenda items for consideration on the March 27, 2018 Discussion of items for Future Agendas to include agenda items for consideration on the March 27, 2018 Council agenda and items from the Town Council Future Agenda Items list (H. Fimbres). Council agenda and items from the Town Council Future Agenda Items list (H. Fimbres).Council agenda and items from the Town Council Future Agenda Items list (H. Fimbres). This item allows Council to request the placement of items on upcoming agendas when the topic of discussion This item allows Council to request the placement of items on upcoming agendas when the topic of discussion This item allows Council to request the placement of items on upcoming agendas when the topic of discussion requires research and review that cannot be accomplished in the time frame between regular Council meetings. requires research and review that cannot be accomplished in the time frame between regular Council meetings. requires research and review that cannot be accomplished in the time frame between regular Council meetings. However, a Council Member may request that an item be placed on the next regularly scheduled meeting without However, a Council Member may request that an item be placed on the next regularly scheduled meeting withHowever, a Council Member may request that an item be placed on the next regularly scheduled meeting with first placing that item on the Future Agenda Items list. All requests for agenda items must comply with Charter first placing that item on the Future Agenda Items list. All requests for agenda items must comply with Charter first placing that item on the Future Agenda Items list. All requests for agenda items must comply with Charter requirements. Mayor Sanders advised that students from Byron Nelson High School would be providing a presentation and advised that students from Byron Nelson High School would be providing a presentation and advised that students from Byron Nelson High School would be providing a presentation and accepting a proclamation to support World Antibiotic Awareness Week at the beginning of the Joint Session ion to support World Antibiotic Awareness Weekion to support World Antibiotic Awareness Weekat the beginning of the Joint Session at the beginning of the Joint Session meeting on March 27, 2018. Council Member Shoffner recommended modifying the Freedom Dog Park agenda language that was scheduled to Council Member Shoffner recommended modifying the Freedom Dog Park agenda language Council Member Shoffner recommended modifying the Freedom Dog Park agenda language be presented to Council on March 27, 2018 because more than one option would be presented. because more than one option would be presented. because more than one option would be presented. Mayor Sanders requested to add the following item to the Town Council Future Agenda Items list: Receive an requested to add the following item to the Town Council Future Agenda Items list: requested to add the following item to the Town Council Future Agenda Items list: update from Town Staff regarding Entryway Monumentation and Landscaping for the Town of Trophy Club. update from Town Staff regarding Entryway Monumentationupdate from Town Staff regarding Entryway Monumentationand Landscaping for the Town of Trophy Club. Additionally, he inquired if the Council would like to add another item regarding a citizen’s inquiry to allow the Additionally, he inquired if the Council would like to add another item regarding a citizen’s inquiry to allow the Additionally, he inquired if the Council would like to add another item regarding a citizen’s inquiry to allow the ability for citizens to use the baseball fields. ability for citizens to use the baseball fields.ability for citizens to use the baseball fields. Council Member Shoffner explained that it would be more appropriate for the Organized Sports Council Council Member Shoffner Council Member Shoffner explained that it would be more appropriate for texplained that it would be more appropriate for t subcommittee to discuss the ability for citizens to use the baseball fields and have the subcommittee provide an discuss the ability for citizens to use the baseball fields the ability for citizens to use the baseball fields update to the Council at a future meeting. update to the Council at a future update to the Council at a future meetingmeeting . EXECUTIVE SESSION EXECUTIVE SESSION 8. Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551 Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551 Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551 (Texas Open Meetings Act), the Council will convene into executive session to discuss the following: (Texas Open Meetings Act), the Council will convene into executive session to discuss the following: (Texas Open Meetings Act), the Council will convene into executive session to discuss the following: A) Section 551.087 Deliberation regarding Economic Development Negotiations under Subsection (1) to Section 551.087 Deliberation regarding Economic DSection 551.087 Deliberation regarding Economic D discuss or deliberate regarding commercial or financial information that the governmental body has discuss or deliberate regarding commercial or financial information that the governmental body has 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 received from a business prospect that the governmental body seeks to have locate, stay, or expand in 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 the territory of the governmental body and with which the governmental body is conducting the territory of the governmental body and with which the governmental body is conducting economic development negotiations and Subsection (2) to deliberate the offer of a financial or other economic development negotiations and Subsection (2) to deliberate the offer of a financial or other economic development negotiations and Subsection (2) to deliberate the offer of a financial or other incentive to a business prospect that the Town seeks to have locate within the territory of the Town: Potential Projects and Incentives (T. Class) B) Section 551.071 Consultation with Attorney under Subsection (2) to consult with the Town Attorney on a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with the Texas Open Meetings Act, specifically: Breach of Contract Issues, Procedures, and Claims (D. Dodd) Town Council Minutes February 27, 2018 Page 3 of 4 Town CouncilPage 20 of 271Meeting Date: March 27, 2018 CONVENED INTO EXECUTIVE SESSION - START TIME – 7:18 P.M. RECONVENED INTO REGULAR SESSION - START TIME – 8:27 P.M. RECONVENED INTO REGULAR SESSION 9. Consider and take appropriate action regarding the Executive Session (H. Fimbres). No action was taken on this item. ADJOURN Mayor Sanders adjourned the meeting at 8:28 p.m. ___________________________________ ___________________________________ ______________________________________________________________________ Holly Fimbres, Town Secretary C. Nick Sanders, Mayor C. Nick SandersC. Nick Sanders , Mayor Town of Trophy Club, Texas Town of Trophy Club, Texas Town of Trophy Club, TexasTown of Trophy Club, Texas Town Council Minutes February 27, 2018 Page 4 of 4 Town CouncilPage 21 of 271Meeting Date: March 27, 2018 Town of Trophy Club 1 Trophy Wood Drive Trophy Club, Texas 76262 Legislation Details (With Text) File #:2018-113-T Version:1 Name: Type:Agenda Item Status:Consent Agenda File created:2/26/2018 In control:Town Council On agenda:3/27/2018 Final action: Title:Consider and take appropriate action regarding an Ordinance of the Town Council of the Town of Trophy Club, Texas, approving a tariff authorizing an annual Rate Review Mechanism (RRM) as a substitution for the annual interim rate adjustment process defined by Section 104.301 of the Texas Utilities Code, and as negotiated between Atmos Energy Corp., Mid-Tex division (Atmos Mid-Tex or Company) and the Steering Committee of Cities served by Atmos; requiring the Company to reimburse Cities’ reasonable ratemaking expenses; adopting a savings clause; determining that this Ordinance was passed in accordance with the requirements of the Open Meetings Act; declaring an effective date; and requiring delivery of this Ordinance to the Company and legal counsel for the Steering Committee (J. Phillips). Attachments:Staff Report - Atmos RRM.pdf ORD 2018-06 - Tariff Authorizing an Annual RRM.pdf DateVer.Action ByActionResult Agenda Item No. 6: ConsiderandtakeappropriateactionregardinganOrdinanceoftheTownCounciloftheTownofTrophyClub,Texas, approvingatariffauthorizinganannualRateReviewMechanism(RRM)asasubstitutionfortheannualinterimrate adjustmentprocessdefinedbySection104.301oftheTexasUtilitiesCode,andasnegotiatedbetweenAtmosEnergy Corp.,Mid-Texdivision(AtmosMid-TexorCompany)andtheSteeringCommitteeofCitiesservedbyAtmos;requiringthe CompanytoreimburseCities’reasonableratemakingexpenses;adoptingasavingsclause;determiningthatthis OrdinancewaspassedinaccordancewiththerequirementsoftheOpenMeetingsAct;declaringaneffectivedate;and requiring delivery of this Ordinance to the Company and legal counsel for the Steering Committee (J. Phillips). Town CouncilPage 22 of 271Meeting Date: March 27, 2018 To: Mayor and Town Council From:Jonathan Phillips, Director of Administrative Services CC: Thomas M. Class Sr., Town Manager Holly Fimbres, Town Secretary/RMO Re: Ordinance adopting a new Rate Review Mechanism (RRM) tariff to govern future annual rate filings by Atmos Mid-Tex. Town Council Meeting, March 27, 2018 Agenda Item: Consider and take appropriate action regarding an Ordinance of the Town Council of the Town of Trophy Club, Texas, approving a tariff authorizing an annual Rate Review Mechanism (RRM) as a substitution for the annual interim rate adjustment process defined by Section 104.301 of the Texas Utilities Code, and as negotiated between Atmos Energy Corp., Mid-Tex division (Atmos Mid-Tex or Company) and the Steering Committee of Cities served by Atmos; requiring the Company to reimburse Cities’ reasonable ratemaking expenses; adopting a savings clause; determining that this Ordinance was passed in accordance with the requirements of the Open Meetings Act; declaring an effective date; and requiring delivery of this Ordinance to the Company and legal counsel for the Steering Committee (J. Phillips). Explanation: The Town, along with 171 other Mid-Texas Cities Served by Atmos Energy Corporation, Mid-Tex Division (Atmos Mid-Tex or Company), is a member of the Steering Committee of Cities Served by Atmos (Cities). In 2007, the Cities and Atmos Mid-Tex settled a rate application filed by the Company pursuant to Section 104.301 of the Texas Utilities Code for an interim rate adjustment commonly referred to as a GRIP filing (arising out of the Gas Reliability Infrastructure Program legislation). That settlement created a substitute rate review process, referred to as Rate Review Mechanism (RRM), as a substitute for future filings under the GRIP statute. Since 2007, there have been several modifications to the original RRM Tariff. The Ordinance that resolved the Company’s application under the RRM Tariff in 2017 also terminated the existing RRM Tariff and required a renegotiation of the terms of that tariff. Negotiations have taken place over the past several months, and have resulted in a revised RRM Tariff that has been agreed to by the Company. The Cities’ Executive Committee has recommended acceptance of the revised RRM Tariff, which is attached to the Ordinance. Page 1 of 2 Town CouncilPage 23 of 271Meeting Date: March 27, 2018 Attachments: Ordinance No. 2018-06 Council Consideration: Staff seeks Council’s consideration of Ordinance No. 2018-06, adopting a new RRM tariff to govern future annual rate filings by Atmos Mid-Tex. Page 2 of 2 Town CouncilPage 24 of 271Meeting Date: March 27, 2018 TOWN OF TROPHY CLUB, TEXAS ORDINANCE NO. 2018-06 AN ORDINANCE OF THE TOWNCOUNCIL OF THE TOWNOF TROPHY CLUB, TEXAS, APPROVING A TARIFF AUTHORIZING AN ANNUAL RATE REVIEW MECHANISM (“RRM”) AS A SUBSTITUTION FOR THE ANNUALINTERIM RATE ADJUSTMENT PROCESS DEFINED BY SECTION 104.301 OF THE TEXAS UTILITIES CODE, AND ASNEGOTIATED BETWEEN ATMOS ENERGYCORP., MID-TEXDIVISION (“ATMOS MID-TEX” OR “COMPANY”) AND THE STEERING COMMITTEE OF CITIES SERVED BY ATMOS;REQUIRING THE COMPANY TO REIMBURSECITIES’ REASONABLE RATEMAKING EXPENSES;ADOPTING A SAVINGS CLAUSE; DETERMINING THAT THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE OPEN MEETINGS ACT; DECLARING AN EFFECTIVE DATE;AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND LEGAL COUNSEL FOR THE STEERING COMMITTEE. WHEREAS, the Townof Trophy Club, Texas (“Town”) is a gas utility customer of Atmos Energy Corp., Mid-TexDivision (“AtmosMid-Tex” or “Company”), and a regulatory authority with an interest in the rates and charges of AtmosMid-Tex; and WHEREAS, the Townand similarly-situated Mid-Texmunicipalities created the Steering Committee of Cities Served by Atmosto efficiently address all rate and service matters associated with delivery of natural gas; and WHEREAS, the Steering Committee formed an Executive Committee to direct legal counsel and to recommend certain specific actionsto all aligned Mid-TexCities through resolution or ordinance; and WHEREAS, pursuant to the terms of a November 2007 agreement between the Steering Committee and Atmos Mid-Texthat settled the Company’s interim rate filing under Section 104.301 of the Texas Utilities Code (a “GRIP” rate case), the Steering Committee and the Company collaboratively developed a Rate Review Mechanism (“RRM”) Tariff, ultimately authorized by the Townin 2008, that allows for an expedited rate review process as a substitute for the GRIP process; and WHEREAS, the Townhas kept some form of a RRM Tariff in place until 2017 when it adopted an ordinance approving an RRM Tariff filing settlement andspecifically callingfor termination of the existing RRM Tariff and negotiation of a replacement RRM Tariff following the Railroad Commission’s decision in a then-pending Atmos Texas Pipeline case (GUD No. 10580); and Town CouncilPage 25 of 271Meeting Date: March 27, 2018 WHEREAS, the Steering Committee’s Executive Committee has recently approved a settlement with the Company on the attached RRM Tariff thatcontains certain notable improvements, from a consumer perspective, over the prior RRM Tariff, including a reduced rate of return on equity, acceptance of certain expense adjustments made by the Railroad Commission in the Order in GUD No. 10580, and the addition of two months to the time for processing a RRM Tariff application; and WHEREAS, the RRM Tariff contemplates reimbursement of Cities’ reasonable expenses associated with RRM Tariff applications; and WHEREAS, the Steering Committee’s Executive Committee recommends that all Steering Committee member cities adopt this ordinance and the attached RRM Tariff; and WHEREAS, the attached RRM Tariff is just, reasonable and in the public interest. NOW, THEREFORE, BE IT ORDAINED BY THE TOWNCOUNCIL OF THE TOWNOF TROPHY CLUB, TEXAS: Section 1.That the findings set forth in this Ordinance are hereby in all things approved. Section 2. That the attached RRM Tariff re-establishing a form of Rate Review Mechanism is just and reasonable and in the public interest, and is hereby adopted. Section 3.That Atmos Mid-Texshall reimburse the Cities’ reasonable expenses associated with adoption of this Ordinance and the attached RRM Tariff and in processing future RRM Tariff applications filed pursuant to the attached tariff. Section 4. That to the extent any resolution or ordinance previously adopted by the Townis inconsistent with this Ordinance, it is hereby repealed. Section 5.That the meeting at which this Ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas GovernmentCode, Chapter 551. Section 6.That if any one or more sections or clauses of this Ordinance is adjudged to be unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining provisions of this Ordinance , and the remaining provisions of this Ordinance shall be interpreted as if the offending section or clause never existed. Section 7.That this Ordinance shall become effective from and after its passage. ORD 2018-06Page 2 of 3 Town CouncilPage 26 of 271Meeting Date: March 27, 2018 Section 8.That a copy of this Ordinance shall be sent to Atmos Mid-Tex, care of Chris Felan, Vice President of Rates and RegulatoryAffairs, Atmos Energy Corporation, Mid-Tex Division, 5420 LBJ Freeway, Suite 1862, Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to Mid-TexCities, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas this 27thday of March 2018. C. Nick Sanders, Mayor Town of Trophy Club, Texas \[SEAL\] ATTEST: Holly Fimbres, Town Secretary Town of Trophy Club,Texas APPROVED AS TO FORM: J. David Dodd III, Town Attorney Town of Trophy Club, Texas ORD 2018-06Page 3 of 3 Town CouncilPage 27 of 271Meeting Date: March 27, 2018 ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: RRM – Rate Review Mechanism ALL CITIES IN THE MID-TEX DIVISION AS IDENTIFIED IN EXHIBIT A TO APPLICABLE TO: THIS RATE SCHEDULE EFFECTIVE DATE:Bills Rendered on and after 04/01/2018 PAGE: 1 I. Applicability Applicable to Residential, Commercial, Industrial, and Transportation tariff customers within the city limits of cities identified in Exhibit A that receive service from the Mid-Tex Division of Atmos Energy Corporation (“Company”). This Rate Review Mechanism (“RRM”) provides for an annual adjustment to the Company’s Rate Schedules R, C, I and T (“Applicable Rate Schedules”). Rate calculations and adjustments required by this tariff shall be determined on a System-Wide cost basis. II. Definitions “Test Period” is defined as the twelve months ending December 31 of each preceding calendar year. The “Effective Date” is the date that adjustments required by this tariff are applied to customer bills. The annual Effective Date is October 1. Unless otherwise provided in this tariff the term Final Order refers to the final order issued by the Railroad Commission of Texas in GUD No. 10170 and elements of GUD No. 10580 as specified in Section III below. The term “System-Wide” means all incorporated and unincorporated areas served by the Company. “Review Period” is defined as the period from the Filing Date until the Effective Date. The “Filing Date” is as early as practicable, but no later than April 1 of each year. III. Calculation The RRM shall calculate an annual, System-Wide cost of service (“COS”) that will be used to adjust applicable rate schedules prospectively as of the Effective Date. The Company may request recovery of its total cost of service but will include schedules showing the computation of any adjustments. The annual cost of service will be calculated according to the following formula: COS = OM + DEP + RI + TAX + CD Where: OM = all reasonable and necessary operation and maintenance expenses from the Test Period adjusted for known and measurable items and prepared Town CouncilPage 28 of 271Meeting Date: March 27, 2018 ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: RRM – Rate Review Mechanism ALL CITIES IN THE MID-TEX DIVISION AS IDENTIFIED IN EXHIBIT A TO APPLICABLE TO: THIS RATE SCHEDULE EFFECTIVE DATE:Bills Rendered on and after 04/01/2018 PAGE: 2 consistent with the rate making treatments approved in the Final Order. Incentive compensation (Management Incentive Plan, Variable Pay Plan and Long Term Incentive Plan) related to Atmos’ Shared Services Unit will be applied consistent with treatment approved in GUD 10580. Additionally, O&M adjustments will be incorporated and applied as modified by a final order, not subject to appeal, issued by the Railroad Commission of Texas in subsequent rate cases involving the Atmos Mid-Tex or West Texas divisions. Known and measurable adjustments shall be limited to those changes that have occurred prior to the Filing Date. OM may be adjusted for atypical and non-recurring items. Shared Services allocation factors shall be recalculated each year based on the latest component factors used during the Test Period, but the methodology used will be that approved in the Final Order in GUD 10580. DEP = depreciation expense calculated at depreciation rates approved by the Final Order. Additionally, if depreciation rates are approved in a subsequent final order, not subject to appeal, issued by the Railroad Commission of Texas for the Mid-Tex division those rates would be applicable for subsequent RRM filings. RI = return on prudently incurred investment calculated as the Company's pretax return multiplied by rate base at Test Period end. Rate base is prepared consistent with the rate making treatments approved in the Final Order, and as in GUD 10580 as specifically related to capitalized incentive compensation (Management Incentive Plan, Variable Pay Plan and Long Term Incentive Plan) for Atmos’ Shared Services Unit. However, no post Test Period adjustments will be permitted. Additionally, adjustments will be incorporated and applied as modified by a final order, not subject to appeal, issued by the Railroad Commission of Texas in subsequent rate cases involving the Atmos Mid-Tex or West Texas divisions. Pretax return is the Company's weighted average cost of capital before income taxes. The Company's weighted average cost of capital is calculated using the methodology from the Final Order including the Company's actual capital structure and long term cost of debt as of the Test Period end (adjusted for any known and measurable changes that have occurred prior to the filing date) and the return on equity of 9.8%. However, in no event will the percentage of equity exceed 58%. Regulatory adjustments due to prior regulatory rate base adjustment disallowances will be maintained. Cash working capital will be calculated using the lead/lag days approved in the Final Order. With respect to pension and other postemployment benefits, the Company will record a regulatory asset or liability for these costs until the amounts are included in the next annual rate adjustment implemented under this tariff. Each year, the Company’s filing under this Rider RRM will clearly state the level of pension Town CouncilPage 29 of 271Meeting Date: March 27, 2018 ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: RRM – Rate Review Mechanism ALL CITIES IN THE MID-TEX DIVISION AS IDENTIFIED IN EXHIBIT A TO APPLICABLE TO: THIS RATE SCHEDULE EFFECTIVE DATE:Bills Rendered on and after 04/01/2018 PAGE: 3 and other postemployment benefits recovered in rates. TAX = income tax and taxes other than income tax from the Test Period adjusted for known and measurable changes occurring after the Test Period and before the Filing Date, and prepared consistent with the rate making treatments approved in the Final Order. Atmos Energy shall comprehensively account for, including establishing a regulatory liability to account for, any statutory change in tax expense that is applicable to months during the Test Period in the calculation to ensure recovery of tax expense under new and old income tax rates . CD = interest on customer deposits. IV. Annual Rate Adjustment The Company shall provide schedules and work papers supporting the Filing’s revenue deficiency/sufficiency calculations using the methodology accepted in the Final Order. The result shall be reflected in the proposed new rates to be established for the effective period. The Revenue Requirement will be apportioned to customer classes in the same manner that Company’s Revenue Requirement was apportioned in the Final Order. For the Residential Class, 50% of the increase may be recovered in the customer charge. However, the increase to the Residential customer charge shall not exceed $0.60 per month in the initial filing and $0.70 per month in any subsequent year. The remainder of the Residential Class increase not collected in the customer charge will be recovered in the usage charge. For all other classes, the change in rates will be apportioned between the customer charge and the usage charge, consistent with the Final Order. Test Period billing determinants shall be adjusted and normalized according to the methodology utilized in the Final Order. V. Filing The Company shall file schedules annually with the regulatory authority having original jurisdiction over the Company's rates on or before the Filing Date that support the proposed rate adjustments. The schedules shall be in the same general format as the cost of service model and relied-upon files upon which the Final Order was based. A proof of rates and a copy of current and proposed tariffs shall also be included with the filing. The filing shall be made in electronic form where practical. The Company’s filing shall conform to Minimum Filing Requirements (to be agreed upon by the parties), which will contain a minimum amount of information that will assist the regulatory authority in its review and analysis of the filing. The Company and regulatory authority will endeavor to hold a technical conference regarding the filing within twenty (20) calendar days after the Filing Date. Town CouncilPage 30 of 271Meeting Date: March 27, 2018 ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: RRM – Rate Review Mechanism ALL CITIES IN THE MID-TEX DIVISION AS IDENTIFIED IN EXHIBIT A TO APPLICABLE TO: THIS RATE SCHEDULE EFFECTIVE DATE:Bills Rendered on and after 04/01/2018 PAGE: 4 A sworn statement shall be filed by an Officer of the Company affirming that the filed schedules are in compliance with the provisions of this Rate Review Mechanism and are true and correct to the best of his/her knowledge, information, and belief. No testimony shall be filed, but a brief narrative explanation shall be provided of any changes to corporate structure, accounting methodologies, allocation of common costs, or atypical or non- recurring items included in the filing. VI. Evaluation Procedures The regulatory authority having original jurisdiction over the Company's rates shall review and render a decision on the Company's proposed rate adjustment prior to the Effective Date. The Company shall provide all supplemental information requested to ensure an opportunity for adequate review by the relevant regulatory authority. The Company shall not unilaterally impose any limits upon the provision of supplemental information and such information shall be provided within seven (7) working days of the original request. The regulatory authority may propose any adjustments it determines to be required to bring the proposed rate adjustment into compliance with the provisions of this tariff. The regulatory authority may disallow any net plant investment that is not shown to be prudently incurred. Approval by the regulatory authority of net plant investment pursuant to the provisions of this tariff shall constitute a finding that such net plant investment was prudently incurred. Such finding of prudence shall not be subject to further review in a subsequent RRM or Statement of Intent filing. During the Review Period, the Company and the regulatory authority will work collaboratively and seek agreement on the level of rate adjustments. If, at the end of the Review Period, the Company and the regulatory authority have not reached agreement, the regulatory authority shall take action to modify or deny the proposed rate adjustments. The Company shall have the right to appeal the regulatory authority's action to the Railroad Commission of Texas. Upon the filing of an appeal of the regulatory authority's order relating to an annual RRM filing with the Railroad Commission of Texas, the regulatory authority having original jurisdiction over the Company's rates shall not oppose the implementation of the Company's proposed rates subject to refund, nor will the regulatory authority advocate for the imposition of a third party surety bond by the Company. Any refund shall be limited to and determined based on the resolution of the disputed adjustment(s) in a final, non-appealable order issued in the appeal filed by the Company at the Railroad Commission of Texas. Town CouncilPage 31 of 271Meeting Date: March 27, 2018 ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: RRM – Rate Review Mechanism ALL CITIES IN THE MID-TEX DIVISION AS IDENTIFIED IN EXHIBIT A TO APPLICABLE TO: THIS RATE SCHEDULE EFFECTIVE DATE:Bills Rendered on and after 04/01/2018 PAGE: 5 In the event that the regulatory authority and Company agree to a rate adjustment(s) that is different from the adjustment(s) requested in the Company’s filing, the Company shall file compliance tariffs consistent with the agreement. No action on the part of the regulatory authority shall be required to allow the rate adjustment(s) to become effective on October 1. To the extent that the regulatory authority does not take action on the Company's RRM filing by September 30, the rates proposed in the Company's filing shall be deemed approved effective October 1. Notwithstanding the preceding sentence, a regulatory authority may choose to take affirmative action to approve a rate adjustment under this tariff. In those instances where such approval cannot reasonably occur by September 30, the rates finally approved by the regulatory authority shall be deemed effective as of October 1. To defray the cost, if any, of regulatory authorities conducting a review of the Company's annual RRM filing, the Company shall reimburse the regulatory authorities on a monthly basis for their reasonable expenses incurred upon submission of invoices for such review. Any reimbursement contemplated hereunder shall be deemed a reasonable and necessary operating expense of the Company in the year in which the reimbursement is made. A regulatory authority seeking reimbursement under this provision shall submit its request for reimbursement to the Company no later than December 1 of the year in which the RRM filing is made and the Company shall reimburse regulatory authorities in accordance with this provision on or before December 31 of the year the RRM filing is made. To the extent possible, the provisions of the Final Order shall be applied by the regulatory authority in determining whether to approve or disapprove of Company’s proposed rate adjustment. This Rider RRM does not limit the legal rights and duties of a regulatory authority. Nothing herein shall abrogate the jurisdiction of the regulatory authority to initiate a rate proceeding at any time to review whether rates charged are just and reasonable. Similarly, the Company retains its right to utilize the provisions of Texas Utilities Code, Chapter 104, Subchapter C to request a change in rates. The provisions of this Rider RRM are implemented in harmony with the Gas Utility Regulatory Act (Texas Utilities Code, Chapters 101-105). The annual rate adjustment process set forth in this tariff shall remain in effect during the pendency of any Statement of Intent rate filing. Town CouncilPage 32 of 271Meeting Date: March 27, 2018 ATMOS ENERGY CORPORATION MID-TEX DIVISION RATE SCHEDULE: RRM – Rate Review Mechanism ALL CITIES IN THE MID-TEX DIVISION AS IDENTIFIED IN EXHIBIT A TO APPLICABLE TO: THIS RATE SCHEDULE EFFECTIVE DATE:Bills Rendered on and after 04/01/2018 PAGE: 6 VII. Reconsideration, Appeal and Unresolved Items Orders issued pursuant to this mechanism are ratemaking orders and shall be subject to appeal under Sections 102.001(b) and 103.021, et seq., of the Texas Utilities Code (Vernon 2007). VIII. Notice Notice of each annual RRM filing shall be provided by including the notice, in conspicuous form, in the bill of each directly affected customer no later than forty-five (45) days after the Company makes its annual filing pursuant to this tariff. The notice to customers shall include the following information: a) a description of the proposed revision of rates and schedules; b) the effect the proposed revision of rates is expected to have on the rates applicable to each customer class and on an average bill for each affected customer; c) the service area or areas in which the proposed rates would apply; d) the date the annual RRM filing was made with the regulatory authority; and e) the Company’s address, telephone number and website where information concerning the proposed rate adjustment can be obtained. Town CouncilPage 33 of 271Meeting Date: March 27, 2018 Town of Trophy Club 1 Trophy Wood Drive Trophy Club, Texas 76262 Legislation Details (With Text) File #:2018-115-T Version:1 Name: Type:Agenda Item Status:Consent Agenda File created:2/26/2018 In control:Town Council On agenda:3/27/2018 Final action: Title:Consider and take appropriate action regarding the financial and variance report dated January 2018 (A. Karkauskas). Attachments:Jan FY18 All Fund Budget Report.pdf DateVer.Action ByActionResult Agenda Item No. 7: Consider and take appropriate action regarding the financial and variance report dated January 2018 (A. Karkauskas). Town CouncilPage 34 of 271Meeting Date: March 27, 2018 2018 27, March Date: Meeting 271 of 35 Page Council Town 2018 27, March Date: Meeting 271 of 36 Page Council Town 2018 27, March Date: Meeting 271 of 37 Page Council Town 2018 27, March Date: Meeting 271 of 38 Page Council Town 2018 27, March Date: Meeting 271 of 39 Page Council Town 2018 27, March Date: Meeting 271 of 40 Page Council Town 2018 27, March Date: Meeting 271 of 41 Page Council Town 2018 27, March Date: Meeting 271 of 42 Page Council Town 2018 27, March Date: Meeting 271 of 43 Page Council Town 2018 27, March Date: Meeting 271 of 44 Page Council Town 2018 27, March Date: Meeting 271 of 45 Page Council Town 2018 27, March Date: Meeting 271 of 46 Page Council Town 2018 27, March Date: Meeting 271 of 47 Page Council Town 2018 27, March Date: Meeting 271 of 48 Page Council Town 2018 27, March Date: Meeting 271 of 49 Page Council Town 2018 27, March Date: Meeting 271 of 50 Page Council Town 2018 27, March Date: Meeting 271 of 51 Page Council Town 2018 27, March Date: Meeting 271 of 52 Page Council Town 2018 27, March Date: Meeting 271 of 53 Page Council Town 2018 27, March Date: Meeting 271 of 54 Page Council Town 2018 27, March Date: Meeting 271 of 55 Page Council Town 2018 27, March Date: Meeting 271 of 56 Page Council Town 2018 27, March Date: Meeting 271 of 57 Page Council Town 2018 27, March Date: Meeting 271 of 58 Page Council Town 2018 27, March Date: Meeting 271 of 59 Page Council Town 2018 27, March Date: Meeting 271 of 60 Page Council Town 2018 27, March Date: Meeting 271 of 61 Page Council Town 2018 27, March Date: Meeting 271 of 62 Page Council Town 2018 27, March Date: Meeting 271 of 63 Page Council Town 2018 27, March Date: Meeting 271 of 64 Page Council Town 2018 27, March Date: Meeting 271 of 65 Page Council Town 2018 27, March Date: Meeting 271 of 66 Page Council Town 2018 27, March Date: Meeting 271 of 67 Page Council Town 2018 27, March Date: Meeting 271 of 68 Page Council Town 2018 27, March Date: Meeting 271 of 69 Page Council Town 2018 27, March Date: Meeting 271 of 70 Page Council Town 2018 27, March Date: Meeting 271 of 71 Page Council Town 2018 27, March Date: Meeting 271 of 72 Page Council Town Town of Trophy Club 1 Trophy Wood Drive Trophy Club, Texas 76262 Legislation Details (With Text) File #:2018-116-T Version:1 Name: Type:Agenda Item Status:Consent Agenda File created:2/26/2018 In control:Town Council On agenda:3/27/2018 Final action: Title:Case TUP-18-005 (TCWC Community Garage Sales) Consider and take appropriate action regarding a request from Trophy Club Women’s Club for a Temporary Use Permit by Special Privilege to allow two community garage sales in calendar year 2018 (L. Payne). Attachments:Staff Report - Community Garage Sales.pdf Exhibit A - Application.pdf Exhibit B - Letter of Intent.pdf DateVer.Action ByActionResult Agenda Item No. 8: Case TUP-18-005 (TCWC Community Garage Sales) ConsiderandtakeappropriateactionregardingarequestfromTrophyClubWomen’sClubforaTemporaryUsePermit by Special Privilege to allow two community garage sales in calendar year 2018 (L. Payne). Town CouncilPage 73 of 271Meeting Date: March 27, 2018 To: Mayor and Town Council From:Lisa Payne, Town Planner CC: Thomas M. Class Sr., Town Manager Holly Fimbres, Town Secretary/RMO Re: Case TUP-18-005 (TCWC Community Garage Sales) Town CouncilMeeting, March 27, 2018 Agenda Item: Case TUP-18-005 (TCWC Community Garage Sales) Consider and take appropriate actionregarding a request from Trophy Club Women’s Club for a Temporary Use Permit by Special Privilege to allow two community garage sales in calendar year 2018 (L. Payne). Details: The applicant, Trophy Club Women’s Club, is requesting permission to hold the first community garage sale this spring and the second community garage sale in the fall. The Town of Trophy Club Code of Ordinances classifies a community garage sale as a Temporary Use by Special Privilege and requires approval by the Town Council, after recommendation from the Planning and Zoning Commission. The Code provides the following requirements for community garage sales: Chapter 14 - Zoning Ordinance, Section 14.02.251 - Temporary Uses (d) Community Garage Sale by Special Privilege: Upon approval by the Town Council, after recommendation by the Planning and Zoning Commission, a community garage sale shall be permitted by Special Privilege to civic organizations or non-profit organizations. Such events shall not occur more than twice annually; and each event shall be one day in duration. Approval of said Special Privilege shall be a condition to prior approval of operations of the event and the proposed locations of the garage sale sites by the Town Department of Public Safety. The spring garage sale is proposed to be held on Saturday, April 28, 2018 and the fall garage sale is planned for Saturday, October 27, 2018. No alternate rain dates have been planned or suggested. The Trophy Club Women’s Club is requesting that the events be allowed to operate from 8:00 a.m. to 2:00 p.m. on the above-mentioned dates. Directional signage will be placed at Page 1 of 2 Town CouncilPage 74 of 271Meeting Date: March 27, 2018 major intersections on the day before each event and will be removed immediately following the conclusion of each event. Planning andZoning Commission Recommendation: The Commission considered this request on Thursday, March 1, 2018. A recommendation of approval was secured by a vote of 4-0-1 with Chairman Sheridan and Commissioners Beach, Blake, and Gibson voting in favor and Vice-Chairman Pipkinsabstaining due to association with the item. CouncilConsideration: Staff seeks Council’s consideration to approveCase TUP-18-005, allowing for two community garage sales, as presented. Attachments: Exhibit A – Application Exhibit B – Letter of Intent Page 2 of 2 Town CouncilPage 75 of 271Meeting Date: March 27, 2018 Town CouncilPage 76 of 271Meeting Date: March 27, 2018 Town CouncilPage 77 of 271Meeting Date: March 27, 2018 Town of Trophy Club 1 Trophy Wood Drive Trophy Club, Texas 76262 Legislation Details (With Text) File #:2018-135-T Version:1 Name: Type:Agenda Item Status:Consent Agenda File created:3/20/2018 In control:Town Council On agenda:3/27/2018 Final action: Title:Consider and take appropriate action regarding a Proclamation of the Town Council recognizing March 17, 2018, as Arbor Day in Trophy Club; and providing an effective date (T. Jaramillo). Attachments:PRO 2018-05 - Arbor Day Recognition.pdf DateVer.Action ByActionResult Agenda Item No. 9: ConsiderandtakeappropriateactionregardingaProclamationoftheTownCouncilrecognizingMarch17,2018,asArbor Day in Trophy Club; and providing an effective date (T. Jaramillo). Town CouncilPage 78 of 271Meeting Date: March 27, 2018 TOWN OF TROPHY CLUB, TEXAS PROCLAMATION NO. 2018-05 A PROCLAMATION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, RECOGNIZINGMARCH 17, 2018 AS ARBOR DAY; RECOGNIZING THAT 2018 IS THE 146THANNIVERSARYOF THE HOLIDAY OF ARBOR DAY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, in 1872, J. Sterling Morton proposed to the Nebraska Board of Agriculture that a special day be set asidefor the planting of trees; and WHEREAS, this holiday, called Arbor Day, was first observed with the planting of more than a million trees in Nebraska; and WHEREAS, 2018 is the 146thanniversary of the holiday and Arbor Day is now observed throughout the nation and the world; and WHEREAS, trees can reduce the erosion of our precious topsoil by wind and water, lowerheating and cooling costs, moderate the temperature, clean the air, produce life-giving oxygen, and provide habitat for wildlife; and WHEREAS, trees are a renewable resource givingus paper, wood for our homes, fuel for our fires, and beautify our community; and WHEREAS, trees are a source of joy and spiritual renewalwherever they are planted. NOW, THEREFORE, I, MAYOR C. NICK SANDERS, IN CONJUNCTION WITH THE TOWN COUNCIL OFTHE TOWN OF TROPHY CLUB, TEXAS, DO HEREBY PROCLAIM: MARCH17, 2018ASARBORDAY Section 1.Encouraging citizens to celebrate Arbor Day,support efforts to protect our trees and woodlands, andplant trees to promote the well-being of this and future generations. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this27th day of March2018. _______________________________ ________________________________ Holly Fimbres, Town Secretary C. Nick Sanders, Mayor Town of Trophy Club, Texas Town of Trophy Club, Texas Town CouncilPage 79 of 271Meeting Date: March 27, 2018 Town of Trophy Club 1 Trophy Wood Drive Trophy Club, Texas 76262 Legislation Details (With Text) File #:2018-136-T Version:1 Name: Type:Agenda Item Status:Consent Agenda File created:3/21/2018 In control:Town Council On agenda:3/27/2018 Final action: Title:Consider and take appropriate action regarding an Ordinance of the Town Council of the Town of Trophy Club, Texas, amending Subsections (f) and (g) of Section A1.014, Water and wastewater fees for Public Improvement District No. 1, of Appendix A, Fee Schedule, of the Town’s Code of Ordinances; and providing a penalty and effective date (T. Uzee). Attachments:Staff Report - PID Water and Wastewater Fees.pdf TCMUD No. 1 Order No. 2018-0320C - Rate Order.pdf ORD 2018-07 - PID Water and Wastewater Fees.pdf DateVer.Action ByActionResult Agenda Item No. 10: ConsiderandtakeappropriateactionregardinganOrdinanceoftheTownCounciloftheTownofTrophyClub,Texas, amendingSubsections(f)and(g)ofSectionA1.014,WaterandwastewaterfeesforPublicImprovementDistrictNo.1,of Appendix A, Fee Schedule, of the Town’s Code of Ordinances; and providing a penalty and effective date (T. Uzee). Town CouncilPage 80 of 271Meeting Date: March 27, 2018 To: Mayor and Town Council From: Tommy Uzee, Director of Community Development CC: Thomas M. Class Sr., Town Manager Holly Fimbres, Town Secretary/RMO Re: PID Water and Wastewater Fees Town Council Meeting, March 27, 2018 Agenda Item: Consider and take appropriate action regarding an Ordinance of the Town Council of the Town of Trophy Club, Texas, amending Subsections (f) and (g) of Section A1.014, Water and wastewater fees for Public Improvement District No. 1, of Appendix A, Fee Schedule, of the Town’s Code of Ordinances; and providing a penalty and effective date (T. Uzee). Explanation: The TCMUD No. 1 Board of Directors met on March 20, 2018to determine the final winter average rates; therefore the Town is adopting a Town Rate Order identical to the amended MUD Rate Order. The changes provided on the attachments provided identify a rate increase in the commercial wastewater volumetric rate for residents within the Public Improvement District. Please see the below changes that are represented in Ordinance No. 2018-07: Page 3 – Subsection f (f) Monthly residential (single-family homes) wastewater fees - effective October 1, 2017 April 1, 2018: (1)The District uses winter averaging for the purpose of calculating sewer charges on utility bills. The sewer charges are based on average water consumption for three months (December, January and February billing). The average consumption will be analyzed annually and take effect the first of April each year. (2)New customers will be assigned a default value user charge that is equal to the average winter water use for all residential customers. The winter average used for new residential customer is 7,000 gallons. Page 1 of 2 Town CouncilPage 81 of 271Meeting Date: March 27, 2018 (3)Any resident filling a pool due to maintenance or construction during the averaging months may request that the water used be subtracted from the usage of the month the water was used. A resident with a houseline water leak during the averaging months may request a reduction in the sewer usage calculation. Requests must be in writing to the General Manager and have documentation showing maintenance, construction or repairs as applicable to the issue. The General Manager or a duly authorized representative may adjust the metered water usage in determining the winter average. To assist in establishing winter averaging sewer rates, Customers are encouraged to submit requests for sewer average reductions no later than March 15th. (A) Base rate: $19.60. (B) 0–4,000 gallons: $3.18/1,000 gallons (C) 4,001–8,000 gallons: $4.51/1,000 gallons. (D) 8,001–12,000 gallons: $6.43/1,000 gallons. (E)>12,001 gallons: $9.14/1,000 gallons. Page 3 - Subsection g (g) Monthly commercial wastewater fees - effective October 1, 2017 April 1, 2018: (1)Base rate: $19.60. (2)Volumetric rate: $5.48$5.92/1,000 gallons. Commercial sewer usage is billed based on actual water usage per month. Attachments: TCMUD No. 1 Order No 2018-0320C Rate Order Ordinance 2018-07 - PID Water and Wastewater Fees Council Consideration: Staff seeks Council’s consideration to approve Ordinance No. 2018-07 as presented. Page 2 of 2 Town CouncilPage 82 of 271Meeting Date: March 27, 2018 Town CouncilPage 83 of 271Meeting Date: March 27, 2018 Town CouncilPage 84 of 271Meeting Date: March 27, 2018 Town CouncilPage 85 of 271Meeting Date: March 27, 2018 Town CouncilPage 86 of 271Meeting Date: March 27, 2018 Town CouncilPage 87 of 271Meeting Date: March 27, 2018 Town CouncilPage 88 of 271Meeting Date: March 27, 2018 Town CouncilPage 89 of 271Meeting Date: March 27, 2018 Town CouncilPage 90 of 271Meeting Date: March 27, 2018 Town CouncilPage 91 of 271Meeting Date: March 27, 2018 Town CouncilPage 92 of 271Meeting Date: March 27, 2018 Town CouncilPage 93 of 271Meeting Date: March 27, 2018 Town CouncilPage 94 of 271Meeting Date: March 27, 2018 Town CouncilPage 95 of 271Meeting Date: March 27, 2018 Town CouncilPage 96 of 271Meeting Date: March 27, 2018 Town CouncilPage 97 of 271Meeting Date: March 27, 2018 Town CouncilPage 98 of 271Meeting Date: March 27, 2018 Town CouncilPage 99 of 271Meeting Date: March 27, 2018 TOWN OF TROPHY CLUB, TEXAS ORDINANCE NO. 2018-07 AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS, AMENDING SUBSECTIONS (F), MONTHLY RESIDENTIAL WASTEWATER FEES, AND (G), MONTHLY COMMERCIAL WASTEWATER FEES, OF SECTION A1.014, WATER AND WASTEWATER FEES FOR PUBLIC IMPROVEMENT DISTRICT NO. 1, OF ARTICLE A1.000, GENERAL PROVISIONS, OF APPENDIX A,FEE SCHEDULE, OF THE TOWN OF TROPHY CLUB CODE OF ORDINANCES; PROVIDING FOR INCORPORATION OF PREMISES; PROVIDING FOR AMENDMENTS; PROVIDING FORSAVINGS AND REPEALER; PROVIDING FORSEVERABILITY; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; PROVIDING FOR A PENALTY NOT TO EXCEED THE SUM OF FIVE HUNDRED DOLLARS ($500.00) FOR EACH OFFENSE AND A SEPARATE OFFENSE SHALL BE DEEMED COMMITTED EACH DAY DURING OR ON WHICH A VIOLATION OCCURS OR CONTINUES; PROVIDING FOR PUBLICATION AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Fees imposed by the Town are adopted via Ordinance and are codified in Appendix A, Fee Schedule,of theTown of Trophy Club Code of Ordinances; and WHEREAS, Section A1.014, Water and wastewater fees for Public Improvement District No. 1,of Appendix A, Fee Schedule, contains fees for public works for the Trophy Club Public Improvement District No. 1 (hereinafter “PID”), including fees for metersutilized within the PID; and WHEREAS, the Town of Trophy Club (the “Town”) is the owner and/or operator of a water and sewer system designed to serve present and future inhabitantsof the Trophy Club Public Improvement District No. 1 (the “Town System”); and WHEREAS, under the Amended and Restated Contract for Wholesale Water Supply and Wastewater Treatment Services and Water and Wastewater Operational Services between the Town and TrophyClub Municipal Utility District No. 1 dated July 25, 2017(the “Contract”), the Trophy Club Municipal Utility District No. 1 (the “MUD”) has agreed to provide the Town with wholesale water and wastewater services and with operations services related to the Town System within theboundaries of the PID Property, as that term is defined in the Contract;and WHEREAS, Section 7.1(a) of the Contract requires that the MUD shall provide to Town any amended or revised MUD Rate Order adopted by MUD and Town shall adopt a Town Rate Order identical to the amended or revised MUD Rate Order. The Town shall adopt a Town Rate Order identical to the amended or revised MUD Rate Order provided that the Town has received receipt of the amended or revised MUD Rate Town CouncilPage 100 of 271Meeting Date: March 27, 2018 Order at least 96 hours before a regularly scheduled Council meeting. In the event that the Town receivesreceipt of the amended or revised MUD Rate Order with less than 96 hours before a regularly scheduled Council meeting then the Town shall adopt a Town Rate Order identical to the amended or revised MUD Rate Order at the second regularly scheduled Council meeting after receiving receipt of the amended or revised MUD Rate Order; and WHEREAS, Sections 3.9 and 4.10 of the Contract require the Town to adopt retail water and wastewater service rules, regulations and policies at least as stringent as the provisions of amended or revised MUD service rules, regulations or policies (the “MUD Service Rules and Policies”)within sixty (60) days of Town’s receiptof the amended or revised MUD Service Rulesand Policies; and WHEREAS, the Town received a revised MUD Rate Order, with revised MUD Service Rules and Policies, on March 21, 2018 with an effective date of April 1, 2018; and WHEREAS, the Town Council hereby finds that the amendment ofSubsections (f)and (g)of Section A1.014of Article A1.000,of Appendix A, of the Town of Trophy Club Code of Ordinances as further specified herein meets it contractual obligations pursuant to the Contract and serves the best interests of the Town. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: SECTION 1. INCORPORATION OF PREMISES That the above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. SECTION 2. AMENDMENTS 2.01 Subsections (f) and (g) of Section A1.014entitled “Water and wastewater fees for Public Improvement District No. 1” of Article A1.000, entitled “General Provisions” of Appendix A, entitled “Fee Schedule” of the Town of Trophy Club Code of Ordinances arehereby repealedand new Subsections (f) and (g)of Section A1.014 entitled “Water and Wastewater Fees for Public Improvement District No. 1” arehereby adopted and read in their entirety as follows: “APPENDIX A FEE SCHEDULE . . . ARTICLE A1.000 GENERAL PROVISIONS . . . ORD 2018-07 Page 2 of 5 Town CouncilPage 101 of 271Meeting Date: March 27, 2018 Section A1.014 Water and Wastewater Fees for Public Improvement District No. 1 . . . (f)Monthly residential (single-family homes) wastewater fees - effectiveOctober 1, 2017April 1, 2018: (1)The District uses winter averaging for the purpose of calculating sewer charges on utility bills. The sewer charges are based on average water consumption for three months (December, January and February billing). The average consumption will be analyzed annually and take effect the first of April each year. (2)New customers will be assigned a default value user charge that is equal to the average winter water use for all residential customers. The winter average used for new residential customer is 7,000 gallons. (3)Any resident filling a pool due to maintenance or construction during the averaging months may request that the water used be subtracted from the usage of the month the water was used. A resident with a houseline water leak during the averaging months mayrequest a reduction in the sewer usage calculation. Requests must be in writing to the General Manager and have documentation showing maintenance, construction or repairs as applicable to the issue. The General Manager or a duly authorized representativemay adjust the metered water usage in determining the winter average. To assist in establishing winter averaging sewer rates, Customers are encouraged to submit requests for sewer average reductions no later than March 15th. (A)Base rate: $19.60. (B) 0–4,000 gallons: $3.18/1,000 gallons (C)4,001–8,000 gallons: $4.51/1,000 gallons. (D)8,001–12,000 gallons: $6.43/1,000 gallons. (E)>12,001 gallons: $9.14/1,000 gallons. (g)Monthly commercial wastewater fees - effectiveOctober 1, 2017April 1, 2018: (1)Base rate: $19.60. (2)Volumetric rate: $5.48$5.92/1,000 gallons. Commercial sewer usage is billed based on actual water usage per month. ORD 2018-07 Page 3 of 5 Town CouncilPage 102 of 271Meeting Date: March 27, 2018 SECTION 3. SAVINGS AND REPEALER That this Ordinance shall be cumulative of all other Ordinances of the Town affecting fees and shall not repeal any of the provisions of such Ordinances except in those instances where provisions of those Ordinances are in direct conflict with the provisions of this Ordinance; whether such Ordinances are codified or uncodified, and all other provisions of the Ordinances of the Town of Trophy Club, codified or uncodified, not in conflict with the provisions of this Ordinance, shall remain in full force and effect. Notwithstanding the foregoing, any complaint, action, cause of actionor claim which prior to the effective date of this Ordinance has been initiated or has arisen under or pursuant to such repealed Ordinance(s) shall continue to be governed by the provisions of that Ordinance and for that purpose the Ordinance shall be deemed to remain and continue in full force and effect. SECTION 4. SEVERABILITY If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or application thereof to any person or circumstance, is held invalid or unconstitutionalby a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of the Ordinance, and the Town Council hereby declares it would have passed such remaining portions of the Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 5. ENGROSSMENT AND ENROLLMENT The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this Ordinance in accordance with the Town Charter. SECTION 6. PENALTY It shall be unlawful for any person to violate any provision of this Ordinance, and any person violating or failing to comply with any provision of this Ordinance shall be fined, upon conviction, not less than One Dollar ($1.00) nor more than Five Hundred Dollars ($500.00), and a separate offense shall be deemed committed upon each day during or on which a violation occurs or continues. SECTION 7. PUBLICATION The Town Secretary of the Town of Trophy Club is hereby directed to publish, the Caption, Penalty and Effective Date of this Ordinance as required by Section 52.011 of the Texas Local Government Code. ORD 2018-07 Page 4 of 5 Town CouncilPage 103 of 271Meeting Date: March 27, 2018 SECTION 8. EFFECTIVE DATE This Ordinance shall take effect on April 1, 2018in accordance with law, and it is so ordained. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this 27thday of March 2018. C. Nick Sanders, Mayor Town of Trophy Club, Texas \[SEAL\] ATTEST: Holly Fimbres, Town Secretary Town of Trophy Club, Texas APPROVED TO AS FORM: J. David Dodd III, Town Attorney Town of Trophy Club, Texas ORD 2018-07 Page 5 of 5 Town CouncilPage 104 of 271Meeting Date: March 27, 2018 Town of Trophy Club 1 Trophy Wood Drive Trophy Club, Texas 76262 Legislation Details (With Text) File #:2018-117-T Version:1 Name: Type:Agenda Item Status:Regular Session File created:2/26/2018 In control:Town Council On agenda:3/27/2018 Final action: Title:Consider and take appropriate action regarding the acceptance of the Audit for the Town of Trophy Club, Fiscal Year 2017 (A. Karkauskas and Louis Breedlove, Audit Manager with BrooksWatson & Co.). Attachments:Trophy Club Fiscal Year 2017 CAFR.pdf DateVer.Action ByActionResult Agenda Item No. 11: ConsiderandtakeappropriateactionregardingtheacceptanceoftheAuditfortheTownofTrophyClub,FiscalYear2017 (A. Karkauskas and Louis Breedlove, Audit Manager with BrooksWatson & Co.). Town CouncilPage 105 of 271Meeting Date: March 27, 2018 Comprehensive Annual Financial Report Popular Annual Financial Report- FY 2016 1 Town CouncilPage 106 of 271Meeting Date: March 27, 2018 Town CouncilPage 107 of 271Meeting Date: March 27, 2018 COMPREHENSIVE ANNUALFINANCIALREPORT ofthe TownofTrophyClub,Texas FortheYearEnded September30,2017 Preparedby ThomasM.Class,Sr. TownManager AmberKarkauskas DirectorofFinance Town CouncilPage 108 of 271Meeting Date: March 27, 2018 Town CouncilPage 109 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas TABLEOFCONTENTS September30,2017 INTRODUCTORYSECTIONPage LetterofTransmittali GFOACertificateofAchievementvi¯ OrganizationalChartvii¯ ListofElectedandAppointedOfficials FINANCIALSECTION IndependentAuditorsReport 1 ManagementsDiscussionandAnalysis 5 BasicFinancialStatements: GovernmentwideFinancialStatements StatementofNetPosition1 StatementofActivities FundFinancialStatements: BalanceSheetGovernmentalFunds2 ReconciliationoftheGovernmentalFundsBalanceSheettotheStatementofNetPosition 2 StatementofRevenues,Expenditures,andChangesinFundBalanceGovernmentalFunds 2 ReconciliationoftheStatementofRevenues,Expenditures,andChangesinFundBalancesof GovernmentalFundstotheStatementofActivities StatementofNetPositionProprietaryFund StatementofRevenues,Expenses,andChangesinNetPositionProprietaryFund StatementofCashFlowsProprietaryFund NotestotheFinancialStatements3 RequiredSupplementaryInformation: ofRevenues,Expenditures,andChangesinFundBalances Budget(GAAPBasis)andActualGeneralFund 7 ScheduleofChangesinNetPensionLiabilityandRelatedRatios TexasMunicipalRetirementSystem78 ScheduleofEmployerContributionstoPensionPlanTexasMunicipalRetirementSystem 79 ScheduleofChangesinNetPensionLiabilityandRelatedRatios OtherPostemploymentBenefits80 Town CouncilPage 110 of 271Meeting Date: March 27, 2018 CombiningandIndividualFundFinancialStatementsandSchedules: CombiningBalanceSheetNonmajorGovernmentalFunds8 CombiningStatementofRevenues,ExpendituresandChangesinFundBalancesNonmajor GovernmentalFunds ScheduleofRevenues,ExpendituresandChangesinFundBalanceBudgetandActual CourtTechnology CourtSecurity7 StreetMaintenance8 HotelOccupancyTax9 CrimeControlandPrevention0 1 RecreationPrograms DebtServiceFund2 3 CapitalProjectsFund STATISTICALSECTION FinancialTrends: NetPositionbyComponent ChangesinNetPosition FundBalancesofGovernmentalFunds ChangesinFundBalancesofGovernmentalFunds RevenueCapacity: AssessedValueandEstimatedActualValueofTaxableProperty DirectandOverlappingPropertyTaxRates PrincipalPropertyTaxpayers PropertyTaxLeviesandCollections DebtCapacity: RatiosofOutstandingDebtbyType RatiosofGeneralBondedDebtOutstanding DirectandOverlappingGovernmentalActivitiesDebt DemographicandEconomicInformation: DemographicandEconomicStatistics PrincipalEmployers OperatingInformation: FullTimeEquivalentGovernmentEmployeesbyFunction OperatingIndicatorsbyFunction Town CouncilPage 111 of 271Meeting Date: March 27, 2018 INTRODUCTORYSECTION Town CouncilPage 112 of 271Meeting Date: March 27, 2018 Town CouncilPage 113 of 271Meeting Date: March 27, 2018 Town CouncilPage 114 of 271Meeting Date: March 27, 2018 Town CouncilPage 115 of 271Meeting Date: March 27, 2018 Revenue Projection Proposed Budget Analysis/Compilation Proposed Budget Development Town Council Budget Study Capital Program Town CouncilPage 116 of 271Meeting Date: March 27, 2018 Public Hearing/Budget Adoption Compilation of Adopted Budget/Budget Maintenance Town CouncilPage 117 of 271Meeting Date: March 27, 2018 Town CouncilPage 118 of 271Meeting Date: March 27, 2018 Town CouncilPage 119 of 271Meeting Date: March 27, 2018 Town CouncilPage 120 of 271Meeting Date: March 27, 2018 Organizational Chart Citizens of Trophy Club Mayor &Town Council David DoddThomas M. Class, Sr.Holly Fimbres Town Manager Town Secretary Wade Carroll Patrick Arata Amber KarkauskasTommy UzeeJonathan PhillipsTony Jaramillo Fire Chief Police Chief Director of FinanceDirector of Director of Director of Community Administrative Parks and Recreation DevelopmentServices Fire Parks FinancePlanningHuman ResourcesPolice Emergency Medical Animal Control Recreation Accounting Information Services Services Communications School Resource Emergency Streets BudgetCode Enforcement & Special Events Management School Crossing Building InspectionsMunicipal Court Facilities Fire Prevention Payroll Guards Town CouncilPage 121 of 271Meeting Date: March 27, 2018 Town Council Nick SandersRhylan RoweAlicia FleuryEric Jensen MayorMayor Pro Tem, Place 3Place 1Place 2 Tim Kurtz Greg LamontPhilip Shoffner Place 4 Place 5Place 6 Town ManagerThomas M. Class, Sr. Town AttorneyDavid Dodd Town SecretaryHolly Fimbres Municipal JudgeHonorable Mark Chambers Management Team Director of Administrative ServicesJonathan Phillips Director of Community DevelopmentTommy Uzee Director of FinanceAmber Karkauskas Director of Parks & Recreation Tony Jaramillo Fire ChiefWade Carroll Police ChiefPatrick Arata Town CouncilPage 122 of 271Meeting Date: March 27, 2018 Town CouncilPage 123 of 271Meeting Date: March 27, 2018 FINANCIALSECTION Town CouncilPage 124 of 271Meeting Date: March 27, 2018 Town CouncilPage 125 of 271Meeting Date: March 27, 2018 INDEPENDENT 4#(3.1ȟ2REPORT TotheHonorableMayorand MembersoftheTownCouncil TownofTrophyClub,Texas: ReportontheFinancialStatements Wehaveauditedtheaccompanyingfinancialstatementsofthegovernmentalactivities,the businesstypeactivities,thediscretelypresentedcomponentunits,eachmajorfund,andthe aggregateremainingfundinformationoftheTownofTrophyClub,Texas(theȠ3µ½´ȡșȍasof andfortheyearendedSeptember30,2017,andtherelatednotestothefinancialstatements, whichcollectivelycomprisethe3µ½´ȟ¹basicfinancialstatementsaslistedinthetableof contents.Thesefinancialstatementsaretheresponsibilityofthe3µ½´ȟ¹management.Our responsibilityistoexpressopinionsonthesefinancialstatementsbasedonouraudit. ,§´§«³«´ºȟ¹ResponsibilityfortheFinancialStatements The3µ½´ȟ¹managementisresponsibleforthepreparationandfairpresentationofthese financialstatementsinaccordancewithaccountingprinciplesgenerallyacceptedintheUnited StatesofAmerica;thisincludesthedesign,implementation,andmaintenanceofinternalcontrol relevanttothepreparationandfairpresentationoffinancialstatementsthatarefreefrom materialmisstatement,whetherduetofraudorerror. »ª¯ºµ¸ȟ¹Responsibility Ourresponsibilityistoexpressopinionsonthesefinancialstatementsbasedonouraudit.We conductedourauditinaccordancewithauditingstandardsgenerallyacceptedintheUnited StatesofAmerica.Thosestandardsrequirethatweplanandperformtheaudittoobtain reasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement. Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsand disclosuresinthefinancialstatements.Theproceduresselecteddependonthe§»ª¯ºµ¸ȟ¹ judgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancial statements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditor irpresentationofthe considersinternalcontrolrelevanttothe«´º¯º¿ȟ¹preparationandfa financialstatementsinordertodesignauditproceduresthatareappropriateinthe circumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessofthe 14950 Heathrow Forest Pkwy | Suite 530 | Houston, TX 77032 | Tel: 281.907.8788 | Fax: 888.875.0587 | www.BrooksWatsonCo.com Town CouncilPage 126 of 271Meeting Date: March 27, 2018 1 «´º¯º¿ȟ¹internalcontrol.Accordingly,weexpressnosuchopinion.Anauditalsoincludes evaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofsignificant accountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthe financialstatements. Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovidea basisforourauditopinion. Opinion Inouropinionthefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects, therespectivefinancialpositionofthegovernmentalactivities,thebusinesstypeactivities,the discretelypresentedcomponentunits,eachmajorfund,andtheaggregateremainingfund informationoftheTownasofSeptember30,2017andtherespectivechangesinfinancial positionandcashflows,whereapplicable,thereoffortheyearthenendedinconformitywith accountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica. OtherMatters 1«·»¯¸«ª2»¶¶²«³«´º§¸¿(´¬µ¸³§º¯µ´ quirethatthe AccountingprinciplesgenerallyacceptedintheUnitedStatesofAmericare ³§´§«³«´ºȟ¹discussionandanalysis,thebudgetarycomparisoninformationforthegeneral fund,thescheduleofchangesinnetpensionliabilityandrelatedratios,andthescheduleof employercontributionstopensionplanbepresentedtosupplementthebasicfinancial statements.Suchinformation,althoughnotapartofthebasicfinancialstatements,isrequired bytheGovernmentalAccountingStandardsBoard,whoconsidersittobeanessentialpartof financialreportingforplacingthebasicfinancialstatementsinanappropriateoperational, economic,orhistoricalcontext.Wehaveappliedcertainlimitedprocedurestotherequired supplementaryinformationinaccordancewithauditingstandardsgenerallyacceptedinthe UnitedStatesofAmerica,whichconsistedofinquiriesofmanagementaboutthemethodsof preparingtheinformationandcomparingtheinformationforconsistencywith³§´§«³«´ºȟ¹ responsestoourinquiries,thebasicfinancialstatements,andotherknowledgeweobtained duringourauditofthebasicfinancialstatements.Wedonotexpressanopinionorprovideany assuranceontheinformationbecausethelimitedproceduresdonotprovideuswithsufficient evidencetoexpressanopinionorprovideanyassurance. .º®«¸(´¬µ¸³§º¯µ´ rmingopinionsonthefinancialstatementsthat Ourauditwasconductedforthepurposeoffo collectivelycomprisetheTownofTrophyClubbasicfinancialstatements.Thecombiningand budgetarycomparisonschedulesfortheothergovernmentalfundsarepresentedforpurposes ofadditionalanalysisandarenotarequiredpartofthebasicfinancialstatements. Town CouncilPage 127 of 271Meeting Date: March 27, 2018 2 Thesupplementaryinformationnotedaboveistheresponsibilityofmanagementandwas derivedfromandrelatesdirectlytotheunderlyingaccountingandotherrecordsusedto preparethebasicfinancialstatements.Suchinformationhasbeensubjectedtotheauditing proceduresappliedintheauditofthebasicfinancialstatementsandcertainadditional procedures,includingcomparingandreconcilingsuchinformationdirectlytotheunderlying accountingandotherrecordsusedtopreparethebasicfinancialstatementsortothebasic financialstatementsthemselves,andotheradditionalproceduresinaccordancewithauditing standardsgenerallyacceptedintheUnitedStatesofAmerica.Inouropinion,the supplementaryinformationisfairlystated,inallmaterialrespects,inrelationtothebasic financialstatementsasawhole. Theintroductorysectionandthestatisticalsectionshavenotbeensubjectedtotheauditing proceduresappliedintheauditofthebasicfinancialstatements,andaccordingly,wedonot expressanopinionorprovideanyassuranceonthem. BrooksWatson&Co.,PLLC CertifiedPublicAccountants Houston,Texas March23,2018 Town CouncilPage 128 of 271Meeting Date: March 27, 2018 3 Town CouncilPage 129 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas , - &$,$-3ȟ2DISCUSSIONANDANALYSIS September30,2017 AsmanagementoftheTownofTrophyClub,Texas(theȠ3µ½´ȡșȍweofferreadersofthe3µ½´ȟ¹ financialstatementsthisnarrativeoverviewandanalysisofthefinancialactivitiesoftheTownforthe fiscalyearendedSeptember30,2017.Weencouragereaderstoconsidertheinformationpresentedhere inconjunctionwithadditionalinformationthatwehavefurnishedinourletteroftransmittal,which canbefoundonpagesiivofthisreport. FinancialHighlights TheassetsoftheTownexceededitsliabilities(netposition)atSeptember30,2017by $36,122,879. TheTownstotalnetpositionincreasedby$1,900,726.ThemajorityoftheTownsnetpositionis investedincapitalassetsorrestrictedforspecificpurposes. TheTownsgovernmentalfundsreportedcombinedendingfundbalancesof$15,332,473at September30,2017,adecreaseof$2,450,696fromthepriorfiscalyear;thisincludesanincrease of$168,652inthegeneralfund,anincreaseof$165,869inthedebtservicefund,adecreaseof creaseof$103,448inthePIDNo.1fund,anda $2,479,421inthecapitalprojectsfund,ade decreaseof$202,348inthenonmajorgovernmentalfunds. Attheendofthefiscalyear,unassignedfundbalanceforthegeneralfundwas$4,087,678or 43%oftotalgeneralfundexpenditures. ityamountedto$2,448,821asofSeptember30,2017. The3µ½´ȟ¹netpensionliabil OverviewoftheFinancialStatements Thediscussionandanalysisprovidedhereareintendedtoserveasanintroductiontothe3µ½´ȟ¹basic financialstatements.The3µ½´ȟ¹basicfinancialstatementsconsistofthreecomponents:1) governmentwidefinancialstatements,2)fundfinancialstatements,and3)thenotestofinancial statements.Thisreportalsoincludessupplementaryinformationintendedtofurnishadditionaldetail tosupportthebasicfinancialstatementsthemselves. GovernmentWideStatements Theµ¼«¸´³«´º½¯ª«¬¯´§´©¯§²¹º§º«³«´º¹ aredesignedtoprovidereaderswithabroadoverviewofthe 3µ½´ȟ¹finances,inamannersimilartoaprivatesectorbusiness.Twostatements,theStatementofNet PositionandtheStatementofActivities,areutilizedtoprovidethisfinancialoverview. The ¹º§º«³«´ºµ¬´«º¶µ¹¯º¯µ´presentsinformationonallofthe3µ½´ȟ¹assetsandliabilities.The differencebetweenthetwoisreportedas´«º¶µ¹¯º¯µ´.Overtime,increasesordecreasesinnetposition mayserveasausefulindicatorofwhetherthefinancialpositionoftheTownisimprovingor 5 Town CouncilPage 130 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas , - &$,$-3ȟ2DISCUSSIONANDANALYSIS,Continued September30,2017 deteriorating.Othernonfinancialfactors,suchasthe3µ½´ȟ¹propertytaxbaseandtheconditionof the3µ½´ȟ¹infrastructure,needtobeconsideredinordertoassesstheoverallhealthoftheTown. The ¹º§º«³«´ºµ¬§©º¯¼¯º¯«¹ presentsinformationshowinghowthe3µ½´ȟ¹netpositionchangedduring themostrecentfiscalyear.Allchangesinnetpositionarereportedassoonastheunderlyingevent givingrisetothechangeoccurs,regardlessofthetimingofrelatedcashflows.Thus,revenuesand expensesarereportedforsomeitemsthatwillonlyresultincashflowsinfuturefiscalperiods(e.g., uncollectedtaxesandearnedbutunusedvacationleave). BothofthegovernmentwidefinancialstatementsdistinguishfunctionsoftheTownthatare principallysupportedbytaxesandintergovernmentalrevenues(µ¼«¸´³«´º§²§©º¯¼¯º¯«¹)fromother functionsthatareintendedtorecoverallorasignificantportionoftheircoststhroughuserfeesand charges(¨»¹¯´«¹¹º¿¶«§©º¯¼¯º¯«¹).ThegovernmentalactivitiesoftheTownincludegeneralgovernment, police,emergencymedicalservices,communitydevelopment,parksandrecreation,streets,court, councilandadministration.Normally,theseoperationsarefinancedbypropertytaxes,salestaxes,and rainage franchisefees.ThebusinesstypeactivitiesoftheTownincludeTrophyClubparkandstormd utilityoperations. ThegovernmentwidefinancialstatementsincludenotonlytheTownitself(knownasthe¶¸¯³§¸¿ µ¼«¸´³«´º),butalsothelegallyseparatecomponentunits,4BEconomicDevelopmentCorporationand theTaxIncrementReinvestmentZone#1,whichtheTownisfinanciallyaccountable.Financial informationforthesecomponentunitsarereportedseparatelyfromthefinancialinformation presentedfortheprimarygovernmentitself. Thegovernmentwidefinancialstatementscanbefoundonpages1823ofthisreport. FUNDFINANCIALSTATEMENTS A¬»´ªisagroupingofrelatedaccountsthatisusedtomaintaincontroloverresourcesthathavebeen segregatedforspecificactivitiesorobjectives.TheTown,likeotherstateandlocalgovernments,uses fundaccountingtoensureanddemonstratecompliancewithfinancerelatedlegalrequirements.Allof thefundsoftheTowncanbedividedintotwocategories:governmentalfundsandproprietaryfunds. GovernmentalFunds &µ¼«¸´³«´º§²¬»´ª¹ areusedtoaccountforessentiallythesamefunctionsreportedasµ¼«¸´³«´º§² §©º¯¼¯º¯«¹ inthegovernmentwidefinancialstatements.However,unlikethegovernmentwidefinancial statements,governmentalfundfinancialstatementsfocuson´«§¸º«¸³¯´¬²µ½¹§´ªµ»º¬²µ½¹µ¬¹¶«´ª§¨²« ¸«¹µ»¸©«¹,aswellason¨§²§´©«¹µ¬¹¶«´ª§¨²«¸«¹µ»¸©«¹ availableattheendofthefiscalyear.Such informationmaybeusefulinassessingaµ¼«¸´³«´ºȟ¹neartermfinancingrequirements. Becausethefocusofgovernmentalfundsisnarrowerthanthatofthegovernmentwidefinancial statements,itisusefultocomparetheinformationpresentedforµ¼«¸´³«´º§²¬»´ª¹ withsimilar informationpresentedforµ¼«¸´³«´º§² activitiesinthegovernmentwidefinancialstatements.By Town CouncilPage 131 of 271Meeting Date: March 27, 2018 6 TownofTrophyClub,Texas , - &$,$-3ȟ2DISCUSSIONANDANALYSIS,Continued September30,2017 doingso,readersmaybetterunderstandthelongtermimpactoftheµ¼«¸´³«´ºȟ¹neartermfinancing decisions.Boththegovernmentalfundbalancesheetandthegovernmentalfundstatementof revenues,expenditures,andchangesinfundbalancesprovideareconciliationtofacilitatethis comparisonbetweenµ¼«¸´³«´º§²¬»´ª¹ andµ¼«¸´³«´º§²§©º¯¼¯º¯«¹Ȍ TheTownmaintainselevenindividualgovernmentalfunds.Informationispresentedseparatelyinthe governmentalfundbalancesheetandinthegovernmentalfundstatementofrevenues,expenditures, andchangesinfundbalancesforthegeneralfund,thedebtservicefund,thecapitalprojectsfund,and thePID,whichareconsideredtobemajorfunds.Datafromtheothergovernmentalfundsare combinedintoasingle,aggregatedpresentation.Individualfunddataforeachofthesenonmajor governmentalfundsisprovidedinaseparatesectionofthereport. TheTownadoptsanannualappropriatedbudgetforitsgeneral,debtservice,capitalprojects,special revenue,TrophyClubPark,andstormdrainageutilityfunds.Inaddition,anannualappropriated budgetisadoptedforthe3µ½´ȟ¹discretelypresentedcomponentunits,4BEconomicDevelopment CorporationandtheTaxIncrementReinvestmentZone#1.AbudgetwasnotadoptedforthePID.A budgetarycomparisonstatementhasbeenprovidedforeachfundtodemonstratecompliancewith theirrespectivebudget. Thebasicgovernmentalfundfinancialstatementscanbefoundonpages2431ofthisreport. ProprietaryFunds The3µ½´ȟ¹proprietaryfundsareallenterprisefunds.$´º«¸¶¸¯¹«¬»´ª¹ areusedtoreportthesame functionspresentedas¨»¹¯´«¹¹º¿¶«§©º¯¼¯º¯«¹ inthegovernmentwidefinancialstatements.TheTown usesanenterprisefundtoaccountforitsTrophyClubparkandstormdrainageoperations.All activitiesassociatedwithprovidingsuchservicesareaccountedforinthesefunds,includingsalaries andbenefits,suppliesandmaterials,repairsandmaintenance,utilities,andotheroperatingexpenses. TheTownsintentisthatcostsofprovidingtheservicestothegeneralpubliconacontinuingbasisis financedthroughuserchargesinamannersimilartoaprivateenterprise. Proprietaryfinancialstatementsprovidethesametypeofinformationasthegovernmentwide financialstatements,onlyinmoredetail.Theproprietaryfundfinancialstatementsprovideseparate informationforTrophyClubPark,andstormdrainageutility,bothofwhichareconsideredtobemajor fundsoftheTown. Thebasicproprietaryfundfinancialstatementscanbefoundonpages3235ofthisreport. ComponentUnits TheTownmaintainstheaccountingandfinancialstatementsfortwodiscretelypresentedcomponent units.The4BEconomicDevelopmentCorporationandtheTaxIncrementReinvestmentZone#1are bothdiscretelypresentedcomponentunitsdisplayedonthegovernmentwidefinancialstatements. Town CouncilPage 132 of 271Meeting Date: March 27, 2018 7 TownofTrophyClub,Texas , - &$,$-3ȟ2DISCUSSIONANDANALYSIS,Continued September30,2017 NotestoFinancialStatements Thenotesprovideadditionalinformationthatisnecessarytoacquireafullunderstandingofthedata providedinthegovernmentwideandfundfinancialstatements. Thenotestothefinancialstatementscanbefoundonpages3773ofthisreport. OtherInformation Inadditiontothebasicfinancialstatements,MD&A,andaccompanyingnotes,thisreportalsopresents certainRequiredSupplementaryInformation(RSI).TherequiredRSIincludesabudgetarycomparison scheduleforthegeneralfund,scheduleofchangesinthenetpensionliabilityandrelatedratiosand scheduleofemployercontributionsfortheTexasMunicipalRetirementSystem.RSIcanbefoundafter thebasicfinancialstatements. GOVERNMENTWIDEFINANCIALANALYSIS Asnotedpreviously,netpositionmayserveovertimeasausefulindicatorofthe3µ½´ȟ¹financial position.FortheTownofTrophyClub,Texas,assetsexceedliabilitiesby$36,122,879asofSeptember 30,2017,intheprimarygovernment. Thelargestportionofthe3µ½´ȟ¹netposition,$27,901,434reflectsitsinvestmentsincapitalassets(e.g., land,buildings,watersystem,machineryandequipment,constructioninprogress),lessanydebtused toacquirethoseassetsthatarestilloutstanding.TheTownusesthesecapitalassetstoprovideservices tocitizens;consequently,theseassetsarenotavailableforfuturespending.Althoughthe3µ½´ȟ¹ investmentinitscapitalassetsisreportednetofrelateddebt,itshouldbenotedthattheresources neededtorepaythisdebtmustbeprovidedfromothersources,sincetheassetsthemselvescannotbe usedtoliquidatetheseliabilities. AnadditionalportionoftheTownofTrophyClub,3«¾§¹ȟ¹netpositionof$4,676,837represents resourcesthataresubjecttoexternalrestrictionsonhowtheymaybeused. Attheendofthecurrentfiscalyear,theTownofTrophyClub,Texasisabletoreportpositivebalances inallreportedcategoriesofnetpositionfortheprimarygovernment,bothforthegovernmentasa whole,aswellasforitsseparategovernmentalandbusinesstypeactivities.Thesamesituationheld trueforthepriorfiscalyear. Town CouncilPage 133 of 271Meeting Date: March 27, 2018 8 TownofTrophyClub,Texas , - &$,$-3ȟ2DISCUSSIONANDANALYSIS,Continued September30,2017 StatementofNetPosition: ThefollowingtablereflectsthecondensedStatementofNetPosition: 20172016 Governmentalpe BusinessTypeGovernmentalBusinessTy ActivitiesActivitiesTotalTotalActivitiesActivities Currentand otherassets$18,357,721$368,804$18,726,525$19,718,941$285,801$20,004,742 Capitalassets,net71,207,8341,931,87673,139,71064,987,5591,985,34666,972,905 TotalAssets 89,565,5552,300,68091,866,23584,706,5002,271,14786,977,647 DeferredOutflowsof Resources 4,574,8584,574,8585,107,4645,107,464 Currentliabilities3,946,019168,0524,114,0713,744,624114,0463,858,670 Longtermliabilities54,716,6071,005,77955,722,38652,495,6601,305,20053,800,860 TotalLiabilities 58,662,6261,173,83159,836,45756,240,2841,419,24657,659,530 DeferredInflowsof Resources 481,757481,757203,428203,428 NetPosition: Netinvestmentin capitalassets27,125,337776,09727,901,43426,940,643680,14627,620,789 Restricted4,676,8374,676,8374,433,6494,433,649 Unrestricted3,193,856350,7523,544,6081,995,960171,7552,167,715 TotalNetPosition$34,996,030$1,126,849$36,122,879$33,370,252$851,901$34,222,153 Currentandotherassetsofgovernmentalactivitieswere$18,357,721and$19,718,941asofSeptember 30,2017andSeptember30,2016,respectively.Thedecreaseof$1,361,220or7%wasprimarily attributabletotheutilizationofbondfundsfortheconstructionofTownHallComplex.Currentand 804and$285,801asofSeptember30,2017and otherassetsofbusinesstypeactivitieswere$368, September30,2016,respectively.Theincreaseof$83,003or29%wasprimarilyattributabletothe increaseinTrophyClubParkchargesforservicesascomparedtotheprioryear.Capitalassetsof governmentalactivitiesincreased$6,220,275or9%.Theincreasewasmainlyattributedtoinvestments intheTownHallComplexinthecurrentyear.Longtermliabilitiesofgovernmentalactivities increasedby$2,220,947or4%duetotheissuanceofnewdebt. Town CouncilPage 134 of 271Meeting Date: March 27, 2018 9 TownofTrophyClub,Texas , - &$,$-3ȟ2DISCUSSIONANDANALYSIS,Continued September30,2017 StatementofActivities: Thefollowingtableprovidesasummaryofthe3µ½´ȟ¹changesinnetposition: FortheYearEndedSeptember30,2017FortheYearEndedSeptember30,2016 TotalTotal GovernmentalBusinessTypePrimaryGovernmentalBusinessTypePrimary ActivitiesActivitiesGovernmentActivitiesActivitiesGovernment Revenues Programrevenues: Chargesforservices$1,576,453$596,520$2,172,973$1,213,011$466,934$1,679,945 Operatinggrants581,633581,633141,07161,106202,177 Generalrevenues: Propertytax10,331,58810,331,5889,701,0809,701,080 Salesandmixedbeveragetax1,306,2431,306,2431,217,6931,217,693 Franchiseandlocaltaxes888,863888,863953,621953,621 Occupancytaxes487,489487,489302,374302,374 Investmentincome146,0152,087148,10265,70991466,623 Otherrevenues908,540908,540382,521382,521 16,226,824598,60716,825,43113,977,080528,95414,506,034 TotalRevenues Expenses Generalgovernment2,483,2982,483,2982,728,6422,728,642 Publicsafety4,562,5354,562,5353,540,7033,540,703 PIDactivities48,52048,5201,224,0291,224,029 Parksandrecreation2,761,0532,761,0532,652,3842,652,384 Communitydevelopment738,659738,659640,404640,404 Streetsandinfrastructure1,728,8091,728,8092,431,4602,431,460 Interestonlongtermdebt2,365,0592,365,0591,394,8911,394,891 TrophyClubPark116,477116,477109,325109,325 Stormdrainage120,295120,295174,499174,499 TotalExpenses 14,687,933236,77214,924,70514,612,513283,82414,896,337 ChangeinNetPosition eoreransers,,,,,,,, BfTf 15388913618351900726(635433)245130(390303) Transfers86,887(86,887)70,206(70,206) 86,887(86,887)70,206(70,206) Total ChangeinNetPosition 1,625,778274,9481,900,726(565,227)174,924(390,303) BeginningNetPosition33,370,252851,90134,222,15333,935,479676,97734,612,456 EndingNetPosition$34,996,030$1,126,849$36,122,879$33,370,252$851,901$34,222,153 Town CouncilPage 135 of 271Meeting Date: March 27, 2018 10 TownofTrophyClub,Texas , - &$,$-3ȟ2DISCUSSIONANDANALYSIS,Continued September30,2017 Graphicpresentationsofselecteddatafromthesummarytablesaredisplayedbelowtoassistinthe analysisofthe3µ½´ȟ¹activities. FortheyearendedSeptember30,2017,revenuesfromgovernmentalactivitiestotaled$16,226,824. Propertytax,chargesforservices,andsalestaxarethe3µ½´ȟ¹largestgeneralrevenuesources.Overall revenueincreased$2,249,744or14%fromtheprioryear.Chargesforservicesincreasedby$363,442or 30%dueprimarilytothenewrevenuestreamofthePublicImprovementDistrictfireassessment. Operatinggrantscontributionsincreasedby$440,562or76%primarilyasaresultoffundsreceived fromTrophyClubMunicipalUtilityDistrictNo.1tocovernewoperatingcostspertainingtothefire department.Occupancytaxesincreasedby$185,115or38%duetonewhotelsopeningwithinthe Town.Otherrevenuesincreasedby$526,019or138%,primarilyasaresultoffeesreceivedforpark landdedication,whichisanonrecurringtransaction.Allotherrevenuesremainedrelativelystable whencomparedtothepreviousyear. Town CouncilPage 136 of 271Meeting Date: March 27, 2018 11 TownofTrophyClub,Texas , - &$,$-3ȟ2DISCUSSIONANDANALYSIS,Continued September30,2017 ThisgraphshowsthegovernmentalfunctionexpensesoftheTown: FortheyearendedSeptember30,2017,expensesforgovernmentalactivitiestotaled$14,687,933.This representsanincreaseof$75,420or1%fromtheprioryear.Theºµ½´ȟ¹largestexpensecategoryis publicsafety,whichtotaled$4,562,535atyearend.Publicsafetyincreasedby$1,021,832or29%dueto theadditionoffireoperationstotheTown,whichareoffsetbythenewfundsreceivedfromfire assessmentsandoperatingcontributionsfromtheMunicipalUtilityDistrict.PublicImprovement Districtactivitiesdecreasedby$1,175,509or96%asaresultofprioryearnonrecurringfinancing activitiesfortherefundingofbonds.Streetsandinfrastructuredecreasedby$702,651or29%asaresult ofthereductioninongoingcapitalprojects.Interestandfiscalchargesincreased$970,168or70% primarilyduetotheissuanceofnewdebtinthecurrentyear. Town CouncilPage 137 of 271Meeting Date: March 27, 2018 12 TownofTrophyClub,Texas , - &$,$-3ȟ2DISCUSSIONANDANALYSIS,Continued September30,2017 Businesstypeactivitiesareshowncomparingoperatingcoststorevenuesgeneratedbyrelated services. FortheyearendedSeptember30,2017,chargesforservicesbybusinesstypeactivitiestotaled$596,520. Thisisanincreaseof$129,586or28%fromthepreviousyear.Theincreaseisprimarilyattributedtothe increaseinparkrevenuescomparedtotheprioryear.Thiswasaresultoftheparksbeingfloodedand closedforasubstantialportionofthepreviousyear.Operatinggrantsdecreasedby$61,106due primarilytononrecurringgrantsreceivedlastyeartoaidinthenecessaryrepairsmadetotheparks. Totalbusinesstypeactivityexpensesdecreased$47,052or17%toatotalof$236,772.TrophyClubPark expensestotaled$116,477andremainedrelativelyconsistentwiththeprioryear.Stormdrainage expensestotaled$120,295anddecreasedby$54,204or31%comparedtotheprioryear.Thedecreaseis attributedtoreducedcapitalprojectsduringthefiscalyear. FINANCIALANALYSISOFTHE3.6-ȟ2FUNDS monstrateandensurecompliancewithfinancerelated Asnotedearlier,fundaccountingisusedtode legalrequirements. GovernmentalFundsThefocusofthe3µ½´ȟ¹governmentalfundsistoprovideinformationofnear terminflows,outflowsandbalancesofspendableresources.Suchinformationisusefulinassessing the3µ½´ȟ¹financingrequirements.Inparticular,unassignedfundbalancemayserveasauseful measureofthe3µ½´ȟ¹netresourcesavailableforspendingattheendoftheyear. AtSeptember30,2017,the3µ½´ȟ¹governmentalfundsreportedcombinedfundbalancesof $15,332,473,adecreaseof$2,450,696incomparisonwiththeprioryear.Approximately94%ofthis amount,$4,087,678,constitutes»´§¹¹¯´«ª¬»´ª¨§²§´©«ȍ whichisavailableforspendingatthe Town CouncilPage 138 of 271Meeting Date: March 27, 2018 13 TownofTrophyClub,Texas , - &$,$-3ȟ2DISCUSSIONANDANALYSIS,Continued September30,2017 µ¼«¸´³«´ºȟ¹discretion.Theremainderofthefundbalanceiseither´µ´¹¶«´ª§¨²«ȍ¸«¹º¸¯©º«ªµ¸ ©µ³³¯ºº«ªtoindicatethatitis1)notinspendableform$91,278or2)committedforparticularpurposes $183,858. Asoftheendoftheyearthegeneralfundreflectedatotalfundbalanceof$4,362,814.Generalfund balanceincreasedby$168,652duringthecurrentyear.Thisincreasecanbeattributedtobudgeted expendituresexceedingactualamounts. Thedebtservicefundhadanendingfundbalanceof$309,043atSeptember30,2017,anincreaseof cewasaresultof $165,869whencomparedtothepreviousyear.Theincreaseinthetotalfundbalan transfersfromotherfunds.Duringtheyear,thefundrecordedtotalprincipalandinterestpaymentsof $1,960,454andpropertytaxrevenueof$1,909,067. Thecapitalprojectsfundhadanendingfundof$6,285,515.Thecapitalprojectsfunddecreased $2,479,421whencomparedtothepreviousyear.Thedecreasewasaresultofincreasedcapitaloutlay expenditurescomparedtotheprioryear. ThePIDNo.1fundreflectedanendingfundbalanceof$3,765,977.Thefundbalancedecreased $103,448,whichisconsideredminimal. ProprietaryFundsThe3µ½´ȟ¹proprietaryfundsprovidethesametypeofinformationfoundinthe governmentwidefinancialstatements,butinmoredetail.Netpositioninthe3µ½´ȟ¹largest proprietaryfund,thestormdrainageutilityfund,totaled$1,147,018.Unrestrictednetpositionatthe closeofthefiscalyearforthe3µ½´ȟ¹utilityfundsamountedto$350,752,anincreaseof$178,997over thepreviousyear.Totalinvestmentincapitalassets,netofrelateddebtwas$776,097,andcapital assets,netofdepreciationtotaled$1,931,876. GENERALFUNDBUDGETARYHIGHLIGHTS Therewerevariousbudgetamendmentsapprovedduringtheyear.Finalbudgetedrevenuewas $1,185,421morethanoriginallybudgetedduetoexpectedintergovernmentalfundstobereceivedfrom theMUDtoreimbursetheTownfornewfiredepartmentoperations. Totalbudgetedexpendituresincreased$1,215,562comparedtotheoriginalbudget.Budget amendmentswereprimarilyduetotheaddedfiredepartmentexpenditures,aswellassomepersonnel changes.Totalbudgetedrevenuesof$10,626,710weregreaterthanrevenuesof$10,276,946,resultingin atotalnegativerevenuevarianceof$349,764.Thenegativevariancewasprimarilytheresultofless thanexpectedrevenuesfromsalestaxes,franchisetaxes,licensesandpermits,andintergovernmental revenues.Totalbudgetedexpendituresof$10,713,546weregreaterthanexpendituresof$9,450,360, swas resultinginatotalpositiveexpenditurevarianceof$1,263,186.Thevarianceintotalexpenditure primarilyduetopositivevarianceswithinallgeneralfunddepartments. Town CouncilPage 139 of 271Meeting Date: March 27, 2018 14 TownofTrophyClub,Texas , - &$,$-3ȟ2DISCUSSIONANDANALYSIS,Continued September30,2017 CAPITALASSETS Asoftheendoftheyear,the3µ½´ȟ¹governmentalactivitiesfundshadinvested$71,207,834ina varietyofcapitalassetsandwatersysteminfrastructure,netofaccumulateddepreciation.The3µ½´ȟ¹ businesstypeactivitiesfundshadinvested$1,931,876inavarietyofcapitalassetsandinfrastructure, netofaccumulateddepreciation.Thisinvestmentincapitalassetsincludesland,buildings,vehicles, machineryandequipment,stormdrainagesystem,andinfrastructure. Majorcapitalasseteventsduringthecurrentyearincludethefollowing: InvestmentsinTownHallComplextotaling$7,012,474. InvestmentsinHarmonyParkparkinglottotaling$384,778. Purchaseoffurnitureforthetownhallamountingto$311,606. Investmentsin5«º«¸§´ȟ¹Memorialandparkinglottotaling$475,979. Continuedinvestmentinstreetreconstructionamountingto$202,308 Purchaseofvariousmotorvehiclesandequipmenttotaling$391,560. Moredetailedinformationaboutthe3µ½´ȟ¹capitalassetsispresentedinnote4.Ctothefinancial statements. LONGTERMDEBT TheTownsoutstandinggeneralobligationbonds,contractualbonds,andspecialassessmentbonds, netofallpremiumsanddiscountsincreasedby$2,566,270fromtheprioryear.Thetotalbondspayable atthecloseofthefiscalyearwas$54,834,712,netofallpremiumsanddiscounts.Ofthisamount, $48,924,475(excludingunamortizedpremium/discount)comprisesofbondeddebtbackedbythefull faithandcreditoftheTown,andtheremainingrepresentsbondssecuredsolelybyselfsupporting activities. Moredetailedinformationaboutthe3µ½´ȟ¹longtermliabilitiesispresentedinnote4.Dtothe financialstatements. ECONOMICFACTORSANDNEXT8$ 1ȟ2BUDGETANDRATES TheTownisapproachingresidentialaswellascommercialandretaildevelopmentbuildout.The Townissuedfewerresidentialconstructionpermitsthaninfiscalyear2016andbudgetedfor45 residentialbuildingpermitsforfiscalyear2018.Residentialdevelopmentisexpectedtodecrease significantlybeginninginfiscalyear2019astheTownreachessubstantialbuildout. TheTownisexpectingcommercialdevelopmenttobeatcompletebuildoutoverthenextfiveyears. HGSupplyCo.isexpectedtoopenattheendofcalendaryear2018.PD30issettostartconstruction infiscalyear2018toincludeanAloftHotel,alargemultifamilycomplex,aneighborhoodof townhomes,andalargedevelopmentofretailalongSH114. Town CouncilPage 140 of 271Meeting Date: March 27, 2018 15 TownofTrophyClub,Texas , - &$,$-3ȟ2DISCUSSIONANDANALYSIS,Continued September30,2017 Infiscalyear2018,GeneralFundrevenuesarebudgetedtoincrease1.6%overfiscalyear2017 estimatedrevenueswhileexpendituresarebudgetedtoincreaseby7.9%overfiscalyear2017 estimatedexpenditures. Thefiscalyear2018budgetdecreasedtheadvaloremtaxrateto$0.451442perhundreddollarsof assessedvalue,downfrom$0.473infiscalyear2017. CONTACTINGTHE3.6-ȟ2FINANCIALMANAGEMENT Thisfinancialreportisdesignedtoprovideageneraloverviewofthe3µ½´ȟ¹financesforallthosewith aninterestintheµ¼«¸´³«´ºȟ¹finances.Questionsconcerninganyoftheinformationprovidedinthis reportorrequestsforadditionalfinancialinformationshouldbeaddressedtotheTownofTrophyClub FinanceDirector,1TrophyWoodDrive,TrophyClub,Texas,76262.Thisinformationcanalsobe accessedontheTownofTrophy"²»¨ȟ¹websiteatwww.trophyclub.org. Town CouncilPage 141 of 271Meeting Date: March 27, 2018 16 BASICFINANCIALSTATEMENTS Town CouncilPage 142 of 271Meeting Date: March 27, 2018 17 TownofTrophyClub,Texas STATEMENTOFNETPOSITION(Page1o2) f September30,2017 PrimaryGovernment GovernmentalBusinessType ActivitiesActivitiesTotal Assets Currentassets: Cashandcashequivalents$14,202,943$404,034$14,606,977 Investments2,190,7742,190,774 Taxesreceivable,net375,485375,485 Receivables,net1,032,11232,5491,064,661 Duefromothergovernments9,9389,938 Duefromcomponentunits386,503386,503 Internalbalances68,515(68,515) Prepaidandotherassets91,45173692,187 TotalCurrentAssets 18,357,721368,80418,726,525 Noncurrentassets: Capitalassets: Nondepreciable19,786,76619,786,766 Netdepreciablecapitalassets51,421,0681,931,87653,352,944 Unamortizedbondinsurance TotalNoncurrentAssets 71,207,8341,931,87673,139,710 TotalAssets 89,565,5552,300,68091,866,235 DeferredOutflowsofResources Pensioncontributions433,649433,649 Pensioninvestmentearnings598,890598,890 Pensionassumptionchanges183,985183,985 Deferredchargeonrefunding3,358,3343,358,334 TotalDeferredOutflowsofResources 4,574,8584,574,858 Town CouncilPage 143 of 271Meeting Date: March 27, 2018 18 ComponentUnits 4BTaxIncrement EconomicReinvestment CorporationZone#1 $569,290$51,392 66,071997 635,36152,389 2,538,765 10,174 2,548,939 3,184,30052,389 Town CouncilPage 144 of 271Meeting Date: March 27, 2018 19 TownofTrophyClub,Texas STATEMENTOFNETPOSITION(Page2of2) September30,2017 PrimaryGovernment Governmental BusinessType ActivitiesActivitiesTotal Liabilities Currentliabilities: Accountspayable1,302,89115,5551,318,446 Accruedliabilities399,017399,017 Duetoprimarygovernment Unearnedrevenue248,306248,306 Accruedinterestpayable223,5082,497226,005 Longtermdebtduewithinoneyear1,772,297150,0001,922,297 TotalCurrentLiabilities 3,946,019168,0524,114,071 Noncurrentliabilities: Longtermdebtdueinmorethanoneyear52,163,7461,005,77953,169,525 OPEBliability104,040104,040 Netpensionliability2,448,8212,448,821 TotalNoncurrentLiabilities 54,716,6071,005,77955,722,386 TotalLiabilities 58,662,6261,173,83159,836,457 DeferredInflowsofResources Pension(gains)losses481,757481,757 TotalDeferredInflowsofResources 481,757481,757 NetPosition Netinvestmentincapitalassets27,125,337776,09727,901,434 Restrictedfor: Municipalcourt37,81937,819 Debtservice309,043309,043 Publicsafety71,25971,259 PIDActivities3,765,9773,765,977 Streetmaintenance92,85692,856 Tourism399,883399,883 Unrestricted3,193,856350,7523,544,608 $34,996,030$1,126,849$36,122,879 TotalNetPosition SeeNotestoFinancialStatements. Town CouncilPage 145 of 271Meeting Date: March 27, 2018 20 ComponentUnits 4BTaxIncrement EconomicReinvestment CorporationZone#1 1,498 386,503 8,402 100,000 109,900386,503 2,361,126 2,361,126 2,471,026386,503 713,274(334,114) $713,274$(334,114) Town CouncilPage 146 of 271Meeting Date: March 27, 2018 21 TownofTrophyClub,Texas STATEMENTOFACTIVITIES FortheYearEndedSeptember30,2017 ProgramRevenues Operating ChargesfoGrantsand r Functions/ProgramsServicesExpensesContributions rmaryovernmen PiGt GovernmentalActivities Generalgovernmen$417,327$333,780$ t PIDActivities48,520 Emergencymedicalservices1,061,816869,677 Managersoffice602,722 Humanresources172,541 Finance462,484 Informationservices500,161 Legal200,733 Court89,069372,996 Police2,346,872 Fire1,064,778581,633 Facilitiesmanagemen127,330 t Parks2,761,053 Communitydevelopmen544,529 t Tourism194,130 Streetsandinfrastructure1,728,809 Interestonlongtermdeb2,365,059 t TotalGovernmentalActivities 14,687,9331,576,453581,633 BusinessTypeActivities TrophyClubPark116,477178,362 Stormdrainageutility120,295418,158 TotalBusinessTypeActivities 236,772596,520 TotalPrimaryGovernmen$14,924,705$2,172,973$581,633 t ComponentUnits 4BEconomicDevelopmentCorporation278,753 TaxIncrementReinvestmentZone#17,267 TotalComponentUnits$286,020$$ GeneralRevenues: Taxes Propertytaxes Salesandmixedbeveragetaxes Franchiseandlocaltaxes Occupancytax Otherrevenues Investmentincome Transfers TotalGeneralRevenuesandTransfers ChangeinNetPosition BeginningNetPosition EndingNetPosition SeeNotestoFinancialStatements. Town CouncilPage 147 of 271Meeting Date: March 27, 2018 22 Net(Expense)RevenueandChangesinNetPosition PrimaryGovernmenComponentUnits t 4BTaxIncrement GovernmentalBusinessTypeEconomicReinvestment ActivitiesActivitiesTotalCorporationZone#1 $(83,547)$$(83,547)$$ (48,520)(48,520) (192,139)(192,139) (602,722)(602,722) (172,541)(172,541) (462,484)(462,484) (500,161)(500,161) (200,733)(200,733) 283,927283,927 (2,346,872)(2,346,872) (483,145)(483,145) (127,330)(127,330) (2,761,053)(2,761,053) (544,529)(544,529) (194,130)(194,130) (1,728,809)(1,728,809) (2,365,059)(2,365,059) (12,529,847)(12,529,847) 61,88561,885 297,863297,863 359,748359,748 (12,529,847)359,748(12,170,099) (278,753) (7,267) (278,753)(7,267) 10,331,58810,331,58846,083 1,306,2431,306,243426,8626,305 888,863888,863 487,489487,489 908,540908,540 146,0152,087148,1023,918 86,887(86,887) 14,155,625(84,800)14,070,825430,78052,388 1,625,778274,9481,900,726152,02745,121 33,370,252851,90134,222,153561,247(379,235) $34,996,030$1,126,849$36,122,879$713,274$(334,114) Town CouncilPage 148 of 271Meeting Date: March 27, 2018 23 TownofTrophyClub,Texas BALANCESHEET GOVERNMENTALFUNDS September30,2017 DebtCapital GeneralServiceProjectsPIDNo.1 Assets Cashandcashequivalents$2,306,101$13,531$7,558,774$3,832,851 Investments2,190,774 Taxesreceivable,net266,545 Accountsreceivable,net1,017,55114,561 Duefromothergovernments9,938 Duefromcomponentunit386,503 Duefromotherfunds80,360299,944 Prepaidandotherassets91,278173 $6,349,050$328,036$7,558,947$3,832,851 TotalAssets Liabilities Accountspayable$340,494$749$907,649$ Accruedliabilities399,017 Duetootherfunds8,503365,783 Accruedinterest4,381 Unearnedrevenuefranchisetaxes248,306 TotalLiabilities 996,3205,1301,273,432 DeferredInflowsofResources Unavailablerevenuepropertytaxes48,26213,86366,874 Unavailablerevenuefinesandforfeitures19,282 Unavailablerevenueemergencymedicalservices107,026 Unavailablerevenueparks788,906 Unavailablerevenuepropertyliens26,440 TotalDeferredInflowsofResources 989,91613,86366,874 FundBalances Nonspendable: Prepaiditems91,278 Restrictedfor: Debtservice309,043 Municipalcourt Publicsafety Streetmaintenance Tourism Capitalprojects6,285,515 PIDActivities3,765,977 Committedfor: Police183,858 Recreationprograms Unassigned4,087,678 TotalFundBalances 4,362,814309,0436,285,5153,765,977 TotalLiabilities,DeferredInflowsof Resources,andFundBalances $6,349,050$328,036$7,558,947$3,832,851 SeeNotestoFinancialStatements. Town CouncilPage 149 of 271Meeting Date: March 27, 2018 24 NonmajorTotal GovernmentalGovernmental FundsFunds $491,686$14,202,943 2,190,774 108,940375,485 1,032,112 9,938 386,503 111,229491,533 91,451 $711,855$18,780,739 $53,999$1,302,891 399,017 48,732423,018 4,381 248,306 102,7312,377,613 128,999 19,282 107,026 788,906 26,440 1,070,653 91,278 309,043 37,81937,819 71,25971,259 92,85692,856 399,883399,883 6,285,515 3,765,977 183,858 7,3077,307 4,087,678 609,12415,332,473 $711,855$18,780,739 Town CouncilPage 150 of 271Meeting Date: March 27, 2018 25 Town CouncilPage 151 of 271Meeting Date: March 27, 2018 26 TownofTrophyClub,Texas RECONCILIATIONOFTHEBALANCESHEETTOTHESTATEMENTOFNETPOSITION GOVERNMENTALFUNDS September30,2017 FundBalancesTotalGovernmentalFunds$15,332,473 AdjustmentsfortheStatementofNetPosition: Capitalassetsusedingovernmentalactivitiesarenotcurrentfinancial resourcesand,therefore,notreportedinthegovernmentalfunds. Capitalassetsnondepreciable19,786,766 Capitalassetsnetdepreciable51,421,068 Otherlongtermassetsarenotavailabletopayforcurrentperiod expendituresand,therefore,aredeferredinthegovernmentalfunds.1,070,653 Deferredinflowsofresources,representsanacquisitionofnetpositionthatapplies toafutureperiod(s)andsowillnotberecognizedasaninflowofresources (revenues)untilthattime Pension(gains)losses(481,757) Deferredoutflowsofresources,representaconsumptionofnetpositionthatapplies toafutureperiod(s)andisnotrecognizedasanoutflowofresources(expense/ expenditures)untilthen Pensioncontributions433,649 Pensioninvestmentearnings598,890 Pensionassumptionchanges183,985 Someliabilities,includingbondspayableanddeferredcharges,arenotreportedas liabilitiesinthegovernmentalfunds. Accruedinterest(219,127) Deferredchargesonbondrefunding3,358,334 Bondpremium(4,754,458) OPEBliability(104,040) Netpensionliability(2,448,821) Noncurrentliabilitiesdueinoneyear (1,772,297) Noncurrentliabilitiesdueinmorethanoneyear(47,409,288) NetPositionofGovernmentalActivities$34,996,030 Town CouncilPage 152 of 271Meeting Date: March 27, 2018 27 TownofTrophyClub,Texas STATEMENTOFREVENUES,EXPENDITURES,ANDCHANGESINFUNDBALANCE GOVERNMENTALFUNDS FortheYearEndedSeptember30,2017 Capital Debt GeneralServiceProjectsPIDNo.1 Revenues Propertytax$6,267,051$1,909,067$$2,085,873 Salesandmixedbeveragetaxes883,612 Franchiseandlocaltaxes888,863 Occupancytax Licenseandpermits333,780 Intergovernmental581,633 Chargesforservices806,815 Finesandforfeitures349,503 Investmentincome48,5037,94083,988 Otherrevenue117,18626,521 TotalRevenues 10,276,9461,917,00783,9882,112,394 xpentures Edi urrent: C Generalgovernment133,879 PIDactivities44,984 Emergencymedicalservices979,623 Managersoffice577,140 Humanresources170,404 Finance442,798 Informationservices490,098 Legal110,140 Court81,377 Police2,092,872 Fire1,031,700 Facilitiesmanagement127,330 Parks2,458,11115,366 Communitydevelopment507,011 Tourism Streets381,756 DebtService: Principal1,263,000304,004 Interestandfiscalcharges688,7261,866,854 Administrativecharges8,728 Bondissuancecosts65,863 Capitaloutlay7,635,098 TotalExpenditures 9,450,3601,960,4547,850,2062,215,842 Excess(Deficiency)ofRevenues Over(Under)Expenditures 826,586(43,447)(7,766,218)(103,448) ternancngourcesses OhFiiS(U) Bondissuance4,445,000 Premiumonbondsissued128,317 Transfersin63,000209,316720,934 Transfers(out)(720,934)(7,454) TotalOtherFinancingSources(Uses) (657,934)209,3165,286,797 NetChangeinFundBalances 168,652165,869(2,479,421)(103,448) Beginningfundbalances4,194,162143,1748,764,9363,869,425 4,362,814309,0436,285,5153,765,977 EndingFundBalances $$$$ SeeNotestoFinancialStatements. Town CouncilPage 153 of 271Meeting Date: March 27, 2018 28 NonmajorTotal GovernmentalGovernmental FundsFunds $$10,261,991 422,6311,306,243 888,863 487,489487,489 333,780 581,633 13,715820,530 6,001355,504 5,584146,015 14,833158,540 950,25315,340,588 133,879 44,984 979,623 577,140 170,404 442,798 490,098 90,593200,733 4,85086,227 200,3972,293,269 1,031,700 127,330 8,6772,482,154 507,011 194,130 194,130 381,756 1,567,004 2,555,580 8,728 65,863 475,9798,111,077 974,62622,451,488 (24,373)(7,110,900) 4,445,000 128,317 993,250 (177,975)(906,363) (177,975)4,660,204 (202,348)(2,450,696) 811,47217,783,169 609,12415,332,473 $$ Town CouncilPage 154 of 271Meeting Date: March 27, 2018 29 Town CouncilPage 155 of 271Meeting Date: March 27, 2018 30 TownofTrophyClub,Texas RECONCILIATIONOFTHESTATEMENTOFREVENUES,EXPENDITURES, ANDCHANGESINFUNDBALANCESOFGOVERNMENTALFUNDSTOTHE STATEMENTOFACTIVITIES FortheYearEndedSeptember30,2017 Amountsreportedforgovernmentalactivitiesinthestatementofactivitiesare differentbecause: Netchangesinfundbalancestotalgovernmentalfunds$(2,450,696) Governmentalfundsreportcapitaloutlaysasexpenditures.However,inthe statementofactivitiesthecostofthoseassetsisallocatedovertheirestimated usefullivesandreportedasdepreciationexpense. Capitaloutlay9,146,919 Depreciationexpense(2,903,647) Disposalofcapitalassets(22,999) Revenuesinthestatementofactivitiesthatdonotprovidecurrentfinancial resourcesarenotreportedasrevenuesinthefunds.886,236 Someexpensesreportedinthestatementofactivitiesdonotrequiretheuseofcurrent financialresourcesand,therefore,arenotreportedasexpendituresingovernmentalfunds. Compensatedabsences(71,484) Accruedinterest197,249 Pensionexpense(201,712) Otherpostemploymentbenefits(15,640) Theissuanceoflongtermdebt(e.g.,bonds,leases,certificatesofobligation) providescurrentfinancialresourcestogovernmentalfunds,whilethe repaymentoftheprincipaloflongtermdebtconsumesthecurrentfinancial resourcesofgovernmentalfunds.Neithertransaction,however,hasany effectonnetposition.Also,governmentalfundsreporttheeffectof premiums,discounts,andsimilaritemswhentheyarefirstissued;whereas, theseamountsaredeferredandamortizedinthestatementofactivities. Thisamountistheneteffectofthesedifferencesinthetreatmentoflongterm debtandrelateditems. Issuanceoflongtermdebt(4,445,000) Premiumofdebtissuance(128,317) Amortizationofdeferredlossonrefunding(222,757) Amortizationofpremium290,622 Principalpayments1,567,004 ChangeinNetPositionofGovernmentalActivities$1,625,778 SeeNotestoFinancialStatements. Town CouncilPage 156 of 271Meeting Date: March 27, 2018 31 TownofTrophyClub,Texas STATEMENTOFNETPOSITION PROPRIETARYFUNDS September30,2017 TrophyClubStormDrainage ParkUtilityTotal Assets CurrentAssets Cashandcashequivalents$100$403,934$404,034 Receivables32,54932,549 Prepaiditems736736 TotalCurrentAssets 836436,483437,319 NoncurrentAssets Capitalassets: Netdepreciablecapitalassets17,5051,914,3711,931,876 TotalNoncurrentAssets 17,5051,914,3711,931,876 TotalAssets 18,3412,350,8542,369,195 Liabilities CurrentLiabilities Accountspayable$6,882$8,673$15,555 Debtduewithinoneyear150,000150,000 Accruedinterest2,4972,497 Duetootherfunds31,62836,88768,515 TotalCurrentLiabilities 38,510198,057236,567 NoncurrentLiabilities Debtdueinmorethanoneyear1,005,7791,005,779 TotalLiabilities 38,5101,203,8361,242,346 NetPosition Netinvestmentincapitalassets17,505758,592776,097 Unrestricted(37,674)388,426350,752 TotalNetPosition$(20,169)$1,147,018$1,126,849 SeeNotestoFinancialStatements. Town CouncilPage 157 of 271Meeting Date: March 27, 2018 32 TownofTrophyClub,Texas STATEMENTOFREVENUES,EXPENSES,ANDCHANGESINFUNDNETPOSITION PROPRIETARYFUNDS FortheYearEndedSeptember30,2017 TrophyClubStormDrainage ParkUtilityTotal OperatingRevenues Chargesforservices$178,362$418,158$596,520 TotalOperatingRevenues 178,362418,158596,520 OperatingExpenses Salariesandbenefits16,37416,374 Suppliesandmaterials18,11718,117 Repairsandmaintenance19,02419,024 Utilities9,8595,28315,142 Otheroperatingexpenses50,71636,87587,591 Depreciation2,38751,08353,470 TotalOperatingExpenses 116,47793,241209,718 OperatingIncome(Loss)61,885324,917386,802 NonoperatingRevenues(Expenses) Investmentincome12,0862,087 Interestandfiscalexpense(27,054)(27,054) TotalNonoperatingRevenues(Expenses)1(24,968)(24,967) IncomeBeforeCapitalContributionsandTransfers 61,886299,949361,835 CapitalContributionsandTransfers Transfers(out)(20,000)(66,887)(86,887) TotalCapitalContributionsandTransfers(20,000)(66,887)(86,887) ChangeinNetPosition 41,886233,062274,948 Beginningnetposition(62,055)913,956851,901 EndingNetPosition$(20,169)$1,147,018$1,126,849 SeeNotestoFinancialStatements. Town CouncilPage 158 of 271Meeting Date: March 27, 2018 33 TownofTrophyClub,Texas STATEMENTOFCASHFLOWS PROPRIETARYFUNDS(Page1of2) FortheYearEndedSeptember30,2017 TrophyClubStormDrainage ParkUtilityTotal CashFlowsfromOperatingActivities Paymentstoemployees$(16,374)$$(16,374) Paymentstosuppliers(141,989)(102,135)(244,124) Receiptsfromcustomers178,362456,212634,574 NetCashProvided(Used)byOperatingActivities 19,999354,077374,076 CashFlowsfromNoncapitalFinancingActivities Transfers(out)(20,000)(66,887)(86,887) NetCashProvided(Used)byNoncapitalFinancing (20,000)(66,887)(86,887) Activities CashFlowsfromCapitalandRelatedFinancingActivities Interestpaidoncapitaldebt(31,777)(31,777) Principalpaidoncapitaldebt(145,000)(145,000) NetCashProvided(Used)byCapitalandRelated FinancingActivities (176,777)(176,777) CashFlowsfromInvestingActivities Interestoninvestments12,0862,087 NetCashProvidedbyInvestingActivities 12,0862,087 NetIncrease(Decrease)inCashandCash Equivalents 112,499112,499 Beginningcashandcashequivalents100291,435291,535 EndingCashandCashEquivalents $100$403,934$404,034 SeeNotestoFinancialStatements. Town CouncilPage 159 of 271Meeting Date: March 27, 2018 34 TownofTrophyClub,Texas STATEMENTOFCASHFLOWS PROPRIETARYFUNDS(Page2of2) FortheYearEndedSeptember30,2017 TrophyClubStormDrainage ParkUtilityTotal ReconciliationofOperatingIncome(Loss) toNetCashProvided(Used)byOperatingActivities OperatingIncome(Loss)$61,885$324,917$386,802 Adjustmentstoreconcileoperating income(loss)tonetcashprovided(used): Depreciation2,38751,08353,470 ChangesinOperatingAssetsandLiabilities: (Increase)Decreasein: Accountsreceivable38,05438,054 Prepaid1,5981,598 Increase(Decrease)in: Accountspayable(605)(95,087)(95,692) Duetootherotherfunds(45,266)35,110(10,156) NetCashProvided(Used)byOperatingActivities $19,999$354,077$374,076 SeeNotestoFinancialStatements. Town CouncilPage 160 of 271Meeting Date: March 27, 2018 35 Town CouncilPage 161 of 271Meeting Date: March 27, 2018 36 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS September30,2017 NOTE1.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES TheTownofTrophyClub(theȠ3µ½´ȡșisaȠ®µ³«ruleºµ½´ȡincorporatedin1985.TheTown operatesunderaCouncilManagerformofgovernmentandprovidesthefollowingservicesas authorizedbyitscharter:council,publicsafety(policeandemergencymedicalservices),parks, publicworks(publicimprovements,streets,planningandzoning),andgeneraladministrative services. TheaccountingandreportingpoliciesoftheTownrelatingtothefundsincludedinthe accompanyingbasicfinancialstatementsconformtoaccountingprinciplesgenerallyacceptedin theUnitedStatesofAmericaapplicabletostateandlocalgovernments.Generallyaccepted accountingprinciplesforlocalgovernmentsincludethoseprinciplesprescribedbythe GovernmentalAccountingStandardsBoard(GASB).Themoresignificantaccountingpoliciesof theTownaredescribedbelow. A.DescriptionofGovernmentWideFinancialStatements tementof Thegovernmentwidefinancialstatements(i.e.,thestatementofnetpositionandthesta activities)reportinformationonallofthenonfiduciaryactivitiesoftheprimarygovernmentand itscomponentunits.Allfiduciaryactivitiesarereportedonlyinthefundfinancialstatements. &µ¼«¸´³«´º§²§©º¯¼¯º¯«¹,whichnormallyaresupportedbytaxes,intergovernmentalrevenues,and othernonexchangetransactions,arereportedseparatelyfrom¨»¹¯´«¹¹º¿¶«§©º¯¼¯º¯«¹,whichrelyto asignificantextentonfeesandchargestoexternalcustomersforsupport.Likewise,the¶¸¯³§¸¿ µ¼«¸´³«´ºisreportedseparatelyfromcertainlegallyseparate©µ³¶µ´«´º»´¯º¹ forwhichthe primarygovernmentisfinanciallyaccountable. B.FinancialReportingEntity TheTownofTrophyClubisamunicipalcorporationgovernedbyanelectedmayorandasix membercouncil.Theaccompanyingfinancialstatementspresentthegovernmentandits componentunits,entitiesforwhichthegovernmentisconsideredfinanciallyaccountable. Blendedcomponentunits,althoughlegallyseparateentities,are,insubstance,partofthe µ¼«¸´³«´ºȟ¹operations.Discretelypresentedcomponentunitsarereportedinseparatecolumns inthegovernmentwidefinancialstatementstoemphasizethattheyarelegallyseparatefromthe government. AsrequiredbyaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica,these financialstatementsincludetheprimarygovernmentandorganizationsforwhichtheprimary governmentisfinanciallyaccountableandotherorganizationsforwhichthenatureand significanceoftheirrelationshipwiththeprimarygovernmentaresuchthatexclusionwould causethereportingentitysfinancialstatementstobemisleadingorincomplete. 37 Town CouncilPage 162 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 Thedefinitionofthereportingentityisbasedprimarilyonthenotionoffinancialaccountability. Aprimarygovernmentisfinanciallyaccountablefortheorganizationsthatmakeupitslegal entity.Itisalsofinanciallyaccountableforlegallyseparateorganizationsifitsofficialsappointa votingmajorityofanorganizationsgoverningbodyandeitheritisabletoimposeitswillonthat organizationorthereisapotentialfortheorganizationtoprovidespecificfinancialbenefitsto,or toimposespecificfinancialburdenson,theprimarygovernment.Aprimarygovernmentmay scallydependentonit. alsobefinanciallyaccountableforgovernmentalorganizationsthatarefi Aprimarygovernmenthastheabilitytoimposeitswillonanorganizationifitcansignificantly influencetheprograms,projects,oractivitiesof,orthelevelofservicesperformedorprovided by,theorganization.Afinancialbenefitorburdenrelationshipexistsiftheprimarygovernment (a)isentitledtotheorganizationsresources;(b)islegallyobligatedorhasotherwiseassumedthe obligationtofinancethedeficitsof,orprovidefinancialsupportto,theorganization;or(c)is obligatedinsomemannerforthedebtoftheorganization. Someorganizationsareincludedascomponentunitsbecauseoftheirfiscaldependencyonthe primarygovernment.Anorganizationisfiscallydependentontheprimarygovernmentifitis unabletoadoptitsbudget,levytaxes,setratesorcharges,orissuebondeddebtwithout approvalbytheprimarygovernment. DiscretelyPresentedComponentUnits 4BEconomicDevelopmentCorporation The4BEconomicDevelopmentCorporationȘȠŷ!ȡșservesallcitizensoftheTownandis governedbyaboardappointedbythe3µ½´ȟ¹electedcouncil.TheTowncanimposeitswill onthe4Bandaffectthedaytodayoperationsofthe4Bbyremovingappointedboard membersatwill.Thescopeofpublicserviceofthe4BbenefitstheTownanditscitizensand isoperatedwithinthegeographicboundariesoftheTown. TaxIncrementInvestmentZone#1 TheTaxIncrementInvestmentZone#1ȘȠ3(19ǸŴȡșservesallcitizensoftheTownandis governedbyaboardappointedbythe3µ½´ȟ¹electedcouncil.TheTowncanimposeitswill ontheTIRZ#1andaffectthedaytodayoperationsoftheTIRZ#1byremovingappointed boardmembersatwill.ThescopeofpublicserviceoftheTIRZ#1benefitstheTownandits citizensandisoperatedwithinthegeographicboundariesoftheTown. Separatefinancialstatementsfortheindividualcomponentunitsarenotprepared. 38 Town CouncilPage 163 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 BlendedComponentUnits CrimeControlandPreventionDistrict TheCrimeControlandPreventionDistrictȘȠ""/#ȡșwasformedunderChapter363ofthe TexasLocalGovernmentCode,theCrimeControlandPreventionAct.TheCCPDis organizedexclusivelytoactonbehalfoftheTowntofinancecrimecontrolwithintheTown. TheCCPDisgovernedbyasevenmemberboardappointedbytheTownCouncil.The annualbudgetandissuanceofdebtmustbeapprovedbytheTownCouncil.SincetheCCPD providesservicesentirelytotheTown,ithasbeenreportedasablendedcomponentunit. PublicImprovementDistrict#1 TheTownofTrophyClubPublicImprovementDistrictNo.1(theȠ/(#ȡșwascreated pursuanttothePublicImprovementDistrictAssessmentAct,SubchapterAofChapter372, TexasLocalGovernmentCode,asamended(theȠ/(# ©ºȡșandaresolutionoftheTown CouncilonApril16,2007.ThePIDwasorganizedtofinancecertainpublicimprovement DistrictNo.1SpecialAssessmentRevenueBondstoassistintheacquisition,constructionand maintenanceofthepublicimprovementsprovidedforthebenefitofthepropertyinthePID. ThePIDisgovernedbytheTownCouncil,andaccordinglyhasbeenreportedasablended componentunit. C.BasisofPresentationGovernmentWideandFundFinancialStatements Whileseparategovernmentwideandfundfinancialstatementsarepresented,theyare interrelated.Thegovernmentalactivitiescolumnincorporatesdatafromgovernmentalfunds whilebusinesstypeactivitiesincorporatedatafromtheµ¼«¸´³«´ºȟ¹enterprisefunds.Separate financialstatementsareprovidedforgovernmentalfundsandtheproprietaryfunds. Asdiscussedearlier,thegovernmenthastwodiscretelypresentedcomponentunitswhichare showninseparatecolumnsinthegovernmentwidefinancialstatements. Asageneralrule,theeffectofinterfundactivityhasbeeneliminatedfromthegovernmentwide financialstatements.Exceptionstothisgeneralrulearepaymentswheretheamountsare reasonablyequivalentinvaluetotheinterfundservicesprovidedandotherchargesbetweenthe variousotherfunctionsofthegovernment.Eliminationofthesechargeswoulddistortthedirect costsandprogramrevenuesreportedforthevariousfunctionsconcerned. Thefundfinancialstatementsprovideinformationabouttheµ¼«¸´³«´ºȟ¹funds,includingits blendedcomponentunits.Separatestatementsforeachfundcategory;governmentaland proprietaryarepresented.Theemphasisoffundfinancialstatementsisonmajorgovernmental andenterprisefunds,eachdisplayedinaseparatecolumn.Allremaininggovernmentaland 39 Town CouncilPage 164 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 enterprisefundsareaggregatedandreportedasnonmajorfunds.Majorindividualgovernmental andenterprisefundsarereportedasseparatecolumnsinthefundfinancialstatements. GovernmentalFunds Governmentalfundsarethosefundsthroughwhichmostgovernmentalfunctionsaretypically financed.Thegovernmentreportsthefollowingmajorgovernmentalfunds: GeneralFund TheGeneralFundisthemainoperatingfundoftheTown.Thisfundisusedtoaccount d forallfinancialresourcesnotaccountedforinotherfunds.Allgeneraltaxrevenuesan otherreceiptsthatarenotrestrictedbylaworcontractualagreementtosomeotherfund areaccountedforinthisfund.Generaloperatingexpenditures,fixedchargesandcapital improvementcoststhatarenotpaidthroughotherfundsarepaidfromtheGeneralFund. DebtServiceFund TheDebtServiceFundisusedtoaccountfortheaccumulationoffinancialresourcesfor thepaymentofprincipal,interestandrelatedcostsonlongtermdebtpaidprimarilyfrom taxesleviedbytheTown.ThefundbalanceoftheDebtServiceFundisrestrictedto signifytheamountsthatarerestrictedexclusivelyfordebtserviceexpenditures. CapitalProjectsFund TheCapitalProjectsFundisusedtoaccountforfundsreceivedandexpendedfor acquisitionandconstructionofinfrastructureandothercapitalassets. PublicImprovementDistrict(PID)No.1 btassociatedwiththe Thisfundaccountsforbondproceeds,assessmentsandrelatedde issuanceofbondsissuedbytheTownasanagentforthePublicImprovementDistrict. ProprietaryFundTypes Proprietaryfundsareusedtoaccountforactivitiesthataresimilartothoseoftenfoundinthe privatesector.Allassets,liabilities,equities,revenues,expenses,andtransfersrelatingtothe µ¼«¸´³«´ºȟ¹businessactivitiesareaccountedforthroughproprietaryfunds.Themeasurement focusisondeterminationofnetincome,financialposition,andcashflows.Proprietaryfunds distinguishoperatingrevenuesandexpensesfromnonoperatingitems.Operatingrevenues includechargesforservices.Operatingexpensesincludecostsofmaterials,contracts,personnel, anddepreciation.Allrevenuesandexpensesnotmeetingthisdefinitionarereportedasnon 40 Town CouncilPage 165 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 operatingrevenuesandexpenses.ProprietaryfundtypesfollowGAAPprescribedbythe GovernmentalAccountingStandardsBoard(GASB)andallfinancialAccountingStandards !µ§¸ªȟ¹standardsissuedpriortoNovember30,1989.Subsequenttothisdate,theTown accountsforitsenterprisefundsaspresentedbyGASB.Theproprietaryfundtypesusedbythe Townincludeenterprisefunds. Thegovernmentreportsthefollowingmajorproprietaryfunds: TrophyClubParkFund TheTrophyClubparkfundisutilizedtoaccountforfundsreceivedandexpendedforthe maintenanceofparkland. StormDrainageFund Thestormdrainagefundaccountsforthestormdrainageutilityfeedesignatedforthe maintenanceoftheTownsstormdrainagesystem. Additionally,theTownreportsforthefollowingNonmajorgovernmentalfunds: HotelOccupancyTaxFund Thisfundisusedtoaccountforlocalhotelandmoteloccupancytaxreceipts,aswellas expenses(events). StreetMaintenanceSalesTaxFund Accountsforsalestaxesspecificallyrestrictedforstreetimprovements. CourtTechnologyFund Accountsforcourtfeesspecificallyrestrictedforcourttechnologyexpenses. CourtSecurityFund Accountsforcourtfeesspecificallyrestrictedforcourtsecurityexpenses. CrimeControlandPreventionDistrictFund Accountsforsalestaxesspecificallyrestrictedforcrimecontrolandprevention. 41 Town CouncilPage 166 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 RecreationProgramsFund Accountsforrevenuesandexpendituresassociatedwithrecreationalprograms. GrantFund ThisfundisusedtoaccountforgrantmoniesreceivedbyandexpendedbytheTown. D.MeasurementFocusandBasisofAccounting Theaccountingandfinancialreportingtreatmentisdeterminedbytheapplicablemeasurement focusandbasisofaccounting.Measurementfocusindicatesthetypeofresourcesbeingmeasured suchas©»¸¸«´º¬¯´§´©¯§²¸«¹µ»¸©«¹ or«©µ´µ³¯©¸«¹µ»¸©«¹Ȍ Thebasisofaccountingindicatesthe timingoftransactionsoreventsforrecognitioninthefinancialstatements. Thegovernmentwidefinancialstatementsarereportedusingthe«©µ´µ³¯©¸«¹µ»¸©«¹³«§¹»¸«³«´º ¬µ©»¹ andthe§©©¸»§²¨§¹¯¹µ¬§©©µ»´º¯´.Revenuesarerecordedwhenearnedandexpensesare recordedwhenaliabilityisincurred,regardlessofthetimingofrelatedcashflows.Property taxesarerecognizedasrevenuesintheyearforwhichtheyarelevied.Grantsandsimilaritems arerecognizedasrevenueassoonasalleligibilityrequirementsimposedbytheproviderhave beenmet. Thegovernmentalfundfinancialstatementsarereportedusingthe©»¸¸«´º¬¯´§´©¯§²¸«¹µ»¸©«¹ ³«§¹»¸«³«´º¬µ©»¹ andthe ³µª¯¬¯«ª§©©¸»§²¨§¹¯¹µ¬§©©µ»´º¯´.Revenuesarerecognizedassoonas ntheyare theyarebothmeasurableandavailable.Revenuesareconsideredtobeavailablewhe collectiblewithinthecurrentperiodorsoonenoughthereaftertopayliabilitiesofthecurrent period.Forthispurpose,thegovernmentconsidersrevenuestobeavailableiftheyarecollected within60daysoftheendofthecurrentfiscalperiod.Expendituresgenerallyarerecordedwhen aliabilityisincurred,asunderaccrualaccounting.However,debtserviceexpenditures,aswell asexpendituresrelatedtocompensatedabsences,andclaimsandjudgments,arerecordedonly whenpaymentisdue.Generalcapitalassetacquisitionsarereportedasexpendituresin governmentalfunds.Issuanceoflongtermdebtandacquisitionsundercapitalleasesare reportedasotherfinancingsources. Propertytaxes,salestaxes,franchisetaxes,licenses,andinterestassociatedwiththecurrentfiscal periodareallconsideredtobesusceptibletoaccrualandsohavebeenrecognizedasrevenuesof leligibilityrequirements thecurrentfiscalperiod.Entitlementsarerecordedasrevenueswhenal aremet,includinganytimerequirements,andtheamountisreceivedduringtheperiodor withintheavailabilityperiodforthisrevenuesource(within60daysofyearend).Expenditure drivengrantsarerecognizedasrevenuewhenthequalifyingexpenditureshavebeenincurred andallothereligibilityrequirementshavebeenmet,andtheamountisreceivedduringthe periodorwithintheavailabilityperiodforthisrevenuesource(within60daysofyearend).All 42 Town CouncilPage 167 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 otherrevenueitemsareconsideredtobemeasurableandavailableonlywhencashisreceivedby thegovernment. Proprietary,pensionandotherpostemploymentbenefittrustfundsarereportedusingthe «©µ´µ³¯©¸«¹µ»¸©«¹³«§¹»¸«³«´º¬µ©»¹ andthe§©©¸»§²¨§¹¯¹µ¬§©©µ»´º¯´.Agencyfundshaveno etsandliabilities. measurementfocusbututilizethe§©©¸»§²¨§¹¯¹µ¬§©©µ»´º¯´forreportingitsass E.Assets,Liabilities,DeferredOutflows/Inflows,andFundEquityorNetPosition 1.DepositsandInvestments The3µ½´ȟ¹cashandcashequivalentsincludescashonhand,demanddepositsandshortterm mthedateofacquisition.Because investmentswithoriginalmaturitiesofthreemonthsorlessfro theTown,atitsoption,canwithdrawfundswithinatwentyfourhourperiodfromTexPool, theseinvestmentsareconsideredtobecashequivalents. StatestatutesauthorizetheTowntoinvestin(1)obligationsoftheUnitedStatesoritsagencies andinstrumentalities;(2)directobligationsoftheStateofTexasoritsagencies;(3)other lofandinterestonwhichareunconditionallyguaranteedorinsuredby obligations,theprincipa theStateofTexasortheUnitedStates;(4)obligationsofstates,agencies,counties,cities,and otherpoliticalsubdivisionsofanystatehavingbeenratedastoinvestmentqualitybya nationallyrecognizedinvestmentratingfirmandhavingreceivedaratingofnotlessthanAor itsequivalent;(5)certificatesofdepositbystateandnationalbanksdomiciledinthisstatethat , are(A)guaranteedorinsuredbytheFederalDepositInsuranceCorporation,oritssuccessor;or (B)securedbyobligationsthataredescribedby(1)ɋ(4);or,(6)fullycollateralizeddirect repurchaseagreementshavingadefinedterminationdate,securedbyobligationsdescribedby (1),pledgedwiththirdpartyselectedorapprovedbytheTown,andplacedthroughaprimary governmentsecuritiesdealer.The3µ½´ȟ¹investmentsaregovernedbythesamestatestatutes. Allinvestmentsarerecordedatfairvaluebasedonquotedmarketprices.Fairvalueisthe amountatwhichafinancialinstrumentcouldbeexchangedinacurrenttransactionbetween willingparties. 2.FairValue ountingStandardsBoard AsofSeptember30,2017,theTownhasappliedGovernmentalAcc ȘȠ& 2!ȡșStatementNo.72,FairValueMeasurementandApplication.GASBStatementNo.72 providesguidancefordeterminingafairvaluemeasurementforreportingpurposesand applyingfairvaluetocertaininvestmentsanddisclosuresrelatedtoallfairvaluemeasurements. 43 Town CouncilPage 168 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 3.ReceivablesandInterfundTransactions Transactionsbetweenfundsthatarerepresentativeoflending/borrowingarrangements outstandingattheendoftheyeararereferredtoaseitherȠ¯´º«¸¬»´ª¸«©«¯¼§¨²«¹Ƀ¶§¿§¨²«¹ȡ(i.e., thecurrentportionofinterfundloans)orȠ§ª¼§´©«¹to/fromother¬»´ª¹ȡ(i.e.,thenoncurrent portionofinterfundloans).AllotheroutstandingbalancesbetweenfundsarereportedasȠª»« ncialstatements.Ifthetransactionsarebetweentheprimary to/fromother¬»´ª¹ȡinthefundfina governmentanditscomponentunit,thesereceivablesandpayablesareclassifiedasȠª»«to/from componentunit/primaryµ¼«¸´³«´ºȌȡAnyresidualbalancesoutstandingbetweenthe governmentalactivitiesandbusinesstypeactivitiesarereportedinthegovernmentwide financialstatementsasȠ¯´º«¸´§²¨§²§´©«¹Ȍȡ Advancesbetweenfundsareoffsetbyanonspendablefundbalanceaccountintheapplicable governmentalfundtoindicatetheyarenotavailableforappropriationandarenotexpendable availablefinancialresources. Alltradereceivablesareshownnetofanyallowanceforuncollectibleamounts. 4.InventoriesandPrepaidItems Thecostsofgovernmentalfundtypeinventoriesarerecordedasexpenditureswhentherelated liabilityisincurred,(i.e.,thepurchasemethod).Theinventoryiscarriedathistoricalcostusing thefirstin/firstoutmethod.Certainpaymentstovendorsreflectcostsapplicabletofuture accountingperiods(prepaidexpenditures)arerecognizedasexpenditureswhenutilized. 5.RestrictedAssets Certainproceedsofgovernmentalandenterprisefundcashandinvestmentsareclassifiedas restrictedassetsonthestatementofnetpositionbecausetheiruseislimitedbyapplicablebond eparties. covenants,legalrestrictions,orrestrictionsinplacebyoutsid 6.CapitalAssets Capitalassets,whichincludeproperty,plant,equipment,andinfrastructureassets(e.g.,roads, bridges,sidewalks,andsimilaritems)arereportedintheapplicablegovernmentalorbusiness typeactivitiescolumnsinthegovernmentwidefinancialstatements.Capitalassetsaredefined ssetswithaninitialindividualcostofmorethan$5,000andanestimated bythegovernment,asa usefullifeinexcessofoneyear.Suchassetsarerecordedathistoricalcostorestimatedhistorical costifpurchasedorconstructed.Donatedcapitalassets,donatedworksofartandsimilaritems, andcapitalassetsreceivedinaserviceconcessionarerecordedatacquisitionvalueonthedateof donation.Majoroutlaysforcapitalassetsandimprovementsarecapitalizedasprojectsare 44 Town CouncilPage 169 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 constructed.Interestcostsincurredinconnectionwithconstructionofenterprisefundcapital assetsarecapitalizedwhentheeffectsofcapitalizationmateriallyimpactthefinancialstatements. Thecostsofnormalmaintenanceandrepairsthatdonotaddtothevalueoftheassetor materiallyextend§¹¹«º¹ȟlivesarenotcapitalized. Property,plant,andequipmentoftheprimarygovernment,aswellasthecomponentunits,are depreciatedusingthestraightlinemethodoverthefollowingestimatedusefulyears. Buildings30Years Improvementsotherthanbuildings1030Years Improvementsotherthanbuildings(streets)30Years Machineryandequipment715Years Vehicles510Years m25Years Watersyste Infrastructure(stormdrainagesystem)40Years 7.DeferredOutflows/InflowsofResources Inadditiontoassets,thestatementoffinancialpositionwillsometimesreportaseparatesection fordeferredoutflows/inflowsofresources.Thisseparatefinancialstatementelement,ª«¬«¸¸«ª «¹µ»¸©«¹,representsaconsumptionofnetpositionthatappliestoafutureperiod(s) µ»º¬²µ½¹µ¬¸ andsowill´µºberecognizedasanoutflowofresources(expense/expenditure)untilthen.The governmentonlyhasthreeitemsthatqualifyforreportinginthiscategory.Oneexampleisthe deferredchargeonrefundingreportedinthegovernmentwidestatementofnetposition.A deferredchargeonrefundingresultsformthedifferenceinthecarryingvalueofrefundeddebt anditsreacquisitionprice.Thisamountisdeferredandamortizedovertheshorterofthelifeof therefundedorrefundingdebt. Inadditiontoliabilities,thestatementoffinancialpositionwillsometimesreportaseparate sectionforª«¬«¸¸«ª¯´¬²µ½¹µ¬¸«¹µ»¸©«¹.Thisseparatefinancialstatementelement,deferredinflows ofresources,representsanacquisitionofnetpositionthatappliestoafutureperiod(s)andsowill hattime.Thegovernmenthasonly notberecognizedasaninflowofresources(revenue)untilt onetypeofitem,whicharisesonlyunderamodifiedaccrualbasisofaccountingthatqualifiesfor reportinginthiscategory.Accordingly,theitem,»´§¼§¯²§¨²«¸«¼«´»«,isreportedonlyinthe governmentalfundsbalancesheet.Thegovernmentalfundsreportunavailablerevenuesfrom propertytaxes,finesandforfeituresandambulancefees.Theseamountsaredeferredand recognizedasaninflowofresourcesintheperiodthattheamountsbecomeavailable.Deferred inflowsofresourcescanalsooccuratthegovernmentwidelevelduetodifferencesbetween investmentgainsandlossesrealizedonpensioninvestmentscomparedtoassumptionused withinthepensionactuarialvaluationmodel. 45 Town CouncilPage 170 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 8.AccumulatedVacation,CompensatedTimeandSickLeave Itisthe3µ½´ȟ¹policytopermitemployeestoaccumulateearnedbutunusedvacationpay benefits.Noliabilityisreportedforunpaidaccumulatedsickleave.Allvacationpayisaccrued whenincurredinthegovernmentwidefinancialstatements.Aliabilityfortheseamountsis reportedingovernmentalfundsonlyiftheyareexpectedtobeliquidatedwithexpendable availablefinancialresources,forexample,asaresultofemployeeresignationsandretirements. 9.LongTermObligations Inthegovernmentwidefinancialstatements,longtermdebtandotherlongtermobligationsare itiesintheapplicablegovernmentalactivitiesstatementofnetposition.The reportedasliabil longtermdebtconsistsprimarilyofbondspayableandaccruedcompensatedabsences. Longtermdebtforgovernmentalfundsisnotreportedasliabilitiesinthefundfinancial statementsuntildue.Thedebtproceedsarereportedasotherfinancingsources,netofthe applicablepremiumordiscountandpaymentsofprincipalandinterestreportedasexpenditures. Inthegovernmentalfundtypes,issuancecosts,evenifwithheldfromtheactualnetproceeds received,arereportedasdebtserviceexpenditures.However,claimsandjudgmentspaidfrom ndfinancialstatementsonlyforthe governmentalfundsarereportedasaliabilityinthefu portionexpectedtobefinancedfromexpendableavailablefinancialresources. Longtermdebtandotherobligations,financedbyproprietaryfunds,arereportedasliabilitiesin theappropriatefunds.Forproprietaryfundtypes,bondpremiumsanddiscountsaredeferred thod,ifmaterial.Bonds andamortizedoverthelifeofthebondsusingtheeffectiveinterestme payablearereportednetoftheapplicablebondpremiumordiscount.Issuancecostsare expensedwhenincurred. Thenetpensionliabilityisincludedwithinlongtermdebt.Thisliabilityisvaluedusingan actuarialmodelandrepresentsthedifferencebetweentheplanfiduciarynetpositionandthenet pensionliabilityconsistentwithGASBstatementno.68.Theportionofthisliabilitypresentedas acurrentliabilityisbasedonactuariallycalculationsforestimatedfuturepaymentsofbenefits andrefundsoverthetwelvemonthsfollowingyearend. 10.Pensions nsionliability,deferredoutflowsofresourcesanddeferred Forpurposesofmeasuringthenetpe inflowsofresourcesrelatedtopensions,andpensionexpense,informationabouttheFiduciary NetPositionoftheTexasMunicipalRetirementSystem(TMRS)andadditionsto/deductions from3,12ȟ¹FiduciaryNetPositionhavebeendeterminedonthesamebasisastheyare reportedbyTMRS.Forthispurpose,plancontributionsarerecognizedintheperiodthat compensationisreportedfortheemployee,whichiswhencontributionsarelegallydue.Benefit 46 Town CouncilPage 171 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 paymentsandrefundsarerecognizedwhendueandpayableinaccordancewiththebenefit terms.Investmentsarereportedatfairvalue. 11.NetPositionFlowAssumption Sometimesthegovernmentwillfundoutlaysforaparticularpurposefrombothrestricted(e.g., ounts restrictedbondorgrantproceeds)andunrestrictedresources.Inordertocalculatetheam toreportasrestrictedɋnetpositionandunrestrictedɋnetpositioninthegovernmentwideand proprietaryfundfinancialstatements,aflowassumptionmustbemadeabouttheorderinwhich theresourcesareconsideredtobeapplied.Itistheµ¼«¸´³«´ºȟ¹policytoconsiderrestrictedɋ netpositiontohavebeendepletedbeforeunrestrictedɋnetpositionisapplied. 12.FundBalanceFlowAssumption Sometimesthegovernmentwillfundoutlaysforaparticularpurposefrombothrestrictedand unrestrictedresources(thetotalofcommitted,assigned,andunassignedfundbalance).Inorder tocalculatetheamountstoreportasrestricted,committed,assigned,andunassignedfund balanceinthegovernmentalfundfinancialstatementsaflowassumptionmustbemadeabout theorderinwhichtheresourcesareconsideredtobeapplied.Itistheµ¼«¸´³«´ºȟ¹policyto considerrestrictedfundbalancetohavebeendepletedbeforeusinganyofthecomponentsof unrestrictedfundbalance.Further,whenthecomponentsofunrestrictedfundbalancecanbe usedforthesamepurpose,committedfundbalanceisdepletedfirst,followedbyassignedfund balance.Unassignedfundbalanceisappliedlast.Thegeneralfundistheonlyfundthatreportsa positiveunassignedfundbalanceamount.Inothergovernmentalfundsitisnotappropriateto reportapositiveunassignedfundbalanceamount.However,ingovernmentalfundsotherthan thegeneralfund,ifexpendituresincurredforspecificpurposesexceedtheamountsthatare restricted,committed,orassignedtothosepurposes,itmaybenecessarytoreportanegative unassignedfundbalanceinthatfund. 13.FundBalancePolicies Fundbalanceofgovernmentalfundsisreportedinvariouscategoriesbasedonthenatureofany limitationsrequiringtheuseofresourcesforspecificpurposes.Thegovernmentitselfcan establishlimitationsontheuseofresourcesthrougheitheracommitment(committedfund balance)oranassignment(assignedfundbalance). Thecommittedfundbalanceclassificationincludesamountsthatcanbeusedonlyforthespecific purposesdeterminedbyaformalactionoftheµ¼«¸´³«´ºȟ¹highestlevelofdecisionmaking authority.Thegoverningcouncilisthehighestlevelofdecisionmakingauthorityforthe governmentthatcan,byadoptionofanordinancepriortotheendofthefiscalyear,commitfund balance.Onceadopted,thelimitationimposedbytheordinanceremainsinplaceuntilasimilar actionistaken(theadoptionofanotherordinance)toremoveorrevisethelimitation. 47 Town CouncilPage 172 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 Amountsintheassignedfundbalanceclassificationareintendedtobeusedbythegovernment forspecificpurposesbutdonotmeetthecriteriatobeclassifiedascommitted.Thegoverning body(Council)hasbyresolutionauthorizedthefinancedirectortoassignfundbalance.The councilmayalsoassignfundbalanceasitdoeswhenappropriatingfundbalancetocoveragap betweenestimatedrevenueandappropriationsinthesubsequent¿«§¸ȟ¹appropriatedbudget. Unlikecommitments,assignmentsgenerallyonlyexisttemporarily.Inotherwords,anadditional actiondoesnotnormallyhavetobetakenfortheremovalofanassignment.Conversely,as discussedabove,anadditionalactionisessentialtoeitherremoveorreviseacommitment.The generalfundistheonlyfundthatreportsapositiveunassignedfundbalanceamount. TheTownCounciladoptedafundbalancepolicyinSeptember2011whichestablishednewfund rnmentalAccounting balancecategories(asrecommendedbyStatementNo.54bytheGove StandardsBoard)andestablishedaminimumunassignedfundbalancegoal(30%ofannual operatingexpenditures). 14.Estimates Thepreparationoffinancialstatements,inconformitywithgenerallyacceptedaccounting principles,requiresmanagementtomakeestimatesandassumptionsthataffectthereported amountsofassetsandliabilitiesanddisclosureofcontingentassetsandliabilitiesatthedateof thefinancialstatementsandthereportedamountsofrevenuesandexpenditures/expensesduring thereportingperiod.Actualresultscoulddifferfromthoseestimates. F.RevenuesandExpenditures/Expenses 1.ProgramRevenues Amountsreportedasprogramrevenuesinclude1)chargestocustomersorapplicantswho purchase,use,ordirectlybenefitfromgoods,services,orprivilegesprovidedbyagivenfunction orsegmentand2)grantsandcontributions(includingspecialassessments)thatarerestrictedto meetingtheoperationalorcapitalrequirementsofaparticularfunctionorsegment.Alltaxes, includingthosededicatedforspecificpurposes,andotherinternallydedicatedresourcesare reportedasgeneralrevenuesratherthanasprogramrevenues. 2.PropertyTaxes PropertytaxesareleviedbyOctober1ontheassessedvaluelistedasofthepriorJanuary1forall realandbusinesspersonalpropertyinconformitywithSubtitleE,TexasPropertyTaxCode. TaxesaredueonreceiptofthetaxbillandaredelinquentifnotpaidbeforeFebruary1ofthe yearfollowingtheyearinwhichimposed.Understatelaw,propertytaxesleviedonreal propertyconstitutealienontherealpropertywhichcannotbeforgivenwithoutspecific 48 Town CouncilPage 173 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 approvaloftheStateLegislature.Thelienexpiresattheendoftwentyyears.Taxesleviedon personalpropertycanbedeemeduncollectiblebytheTown. Propertytaxesatthefundlevelarerecordedasreceivablesanddeferredrevenuesatthetimethe taxesareassessed.Revenuesarerecognizedastherelatedadvaloremtaxesarecollected. Additionalamountsestimatedtobecollectibleintimetobearesourceforpaymentofobligations incurredduringthefiscalyearandthereforesusceptibletoaccrualinaccordancewithGenerally AcceptedAccountingPrincipleshavebeenrecognizedasrevenue. 3.ProprietaryFundsOperatingandNonoperatingRevenuesandExpenses nuesandexpensesfrom´µ´µ¶«¸§º¯´items. Proprietaryfundsdistinguishµ¶«¸§º¯´reve Operatingrevenuesandexpensesgenerallyresultfromprovidingservicesandproducingand deliveringgoodsinconnectionwithaproprietary¬»´ªȟ¹principalongoingoperations.The principaloperatingrevenuesoftheutilityfund,golfcoursefund,andstormwaterutilityfunds arechargestocustomersforsalesandservices.Theutilityfundalsorecognizesasoperating revenuetheportionoftapfeesintendedtorecoverthecostofconnectingnewcustomerstothe system.Operatingexpensesforenterprisefundsincludethecostofsalesandservices, ts.Allrevenuesandexpensesnot administrativeexpenses,anddepreciationoncapitalasse meetingthisdefinitionarereportedasnonoperatingrevenuesandexpenses. NOTE2.RECONCILIATIONOFGOVERNMENTWIDEANDFUNDFINANCIALSTATEMENTS A.Explanationofcertaindifferencesbetweenthegovernmentalfundbalancesheetandthe governmentwidestatementofnetposition. Thegovernmentalfundbalancesheetincludesreconciliationbetween¬»´ª¨§²§´©«ºµº§² µ¼«¸´³«´º§²¬»´ª¹ and´«º¶µ¹¯º¯µ´µ¼«¸´³«´º§²§©º¯¼¯º¯«¹ asreportedinthegovernmentwide statementofnetposition.Oneelementofthatreconciliationexplainsthatlongtermliabilities, includingbonds,arenotdueandpayableinthecurrentperiodand,therefore,arenotreportedin thefunds. B.Explanationofcertaindifferencesbetweenthegovernmentalfundstatementofrevenues, expenditures,andchangesinfundbalancesandthegovernmentwidestatementofactivities. Thegovernmentalfundstatementofrevenues,expenditures,andchangesinfundbalances algovernmentalfundsand includesareconciliationbetweennetchangesinfundbalancesɋtot changesinnetpositionofgovernmentalstatesthat,Ƞº®«issuanceoflongtermdebt(e.g.,bonds) providescurrentfinancialresourcestogovernmentalfunds,whiletherepaymentofthe principaloflongtermdebtconsumesthecurrentfinancialresourcesofgovernmentalfunds. Also,governmentalfundsreporttheeffectofpremiums,discounts,andsimilaritemswhendebt isfirstissued,whereastheseamountsaredeferredandamortizedinthestatementof§©º¯¼¯º¯«¹Ȍȡ 49 Town CouncilPage 174 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 NOTE3.STEWARDSHIP,COMPLIANCE,ANDACCOUNTABILITY Annualbudgetsareadoptedonabasisconsistentwithgenerallyacceptedaccountingprinciples (GAAP)forthegeneral,courttechnology,courtsecurity,streetmaintenance,hotel/moteltax, crimecontrolandprevention,recreationprograms,debtservicefundandcapitalprojects,and wnCouncilpriortothebeginningof enterprisefunds.TheoriginalbudgetisadoptedbytheTo theyear.ThelegallevelofcontrolasdefinedbytheTownCharteristhefundlevel.Nofunds canbetransferredoraddedwhichaffectthetotalfundexpenditureswithoutTownCouncil approval.Appropriationslapseattheendoftheyear.DuringthefiscalyearendedSeptember 30,2017,finalgeneralfundbudgetedrevenuewasprojectedtobe$1,185,421morethanthe originalbudget.Finalbudgetedexpendituresincreased$1,215,562comparedtotheoriginal budget. AsofSeptember30,2017.Expendituresexceededappropriationsatthelegallevelofcontrolfor theHotelOccupancyTaxfundandtheRecreationProgramsfundintheamountsof$32,778and $677,respectively. A.RestrictedNetPosition TheTownrecordsrestrictednetpositiononamountswithexternallyimposedrestrictions(e.g., throughdebtcovenantsorbygrantors)orrestrictionsimposedbylawthroughconstitutional provisionsorenablinglegislation.Totalrestrictednetpositionfortheprimarygovernmentwas $4,676,837.Ofwhich,$37,819and$399,883,atotalof$437,702,isrestrictedbyenabling legislation. B.DeficitNetPosition TheTrophyClubParkfundhadadeficitnetpositionof$20,169asofSeptember30,2017.This deficitwillbereplenishedinthesubsequentperiod. NOTE4.DETAILEDNOTESONALLFUNDS A.DepositsandInvestments DepositsStatestatutesrequirethatalldepositsinfinancialinstitutionsbefullycollateralizedby U.S.GovernmentobligationsoritsagenciesandinstrumentalitiesordirectobligationsofTexas hantheprincipal oritsagenciesandinstrumentalitiesthathaveamarketvalueofnotlesst amountofthedeposits.TheTownscashdepositsatSeptember30,2017andduringtheyear endedSeptember30,2017wereentirelycoveredbyFDICinsuranceorbypledgedcollateralheld bytheTownsagentbankintheTownsname. 50 Town CouncilPage 175 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 Legalandcontractualprovisionsgoverningdepositsandinvestments ThePublicFundsInvestmentAct(GovernmentCodeChapter2256)containsspecificprovisions intheareasofinvestmentpractices,managementreportsandestablishmentofappropriate policies.Amongotherthings,itrequirestheTowntoadopt,implement,andpublicizean efollowingareas:(1)safetyofprincipaland investmentpolicy.Thatpolicymustaddressth liquidity,(2)portfoliodiversification,(3)allowableinvestments,(4)acceptablerisklevels,(5) expectedratesofreturn,(6)maximumallowablestatedmaturityofportfolioinvestments,(7) maximumaveragedollarweightedmaturity,allowedbasedonthestatedmaturitydateforthe portfolio,and(8)investmentstaffqualityandcapabilities. TheActalsorequirestheTowntohaveindependentauditorsperformtestproceduresrelatedto investmentpracticesasprovidedbytheAct.TheTownisinsubstantialcompliancewiththe requirementsoftheActandwithlocalpolicies. AsofSeptember30,2017,theTownhadthefollowinginvestments: CarryingAverageMaturity InvestmentTypeValue(Years) Certificatesofdeposit$2,190,7740.99 Externalinvestmentpools11,108,4900.05 Totalfairvalue$13,299,264 Portfolioweightedaveragematurity0.20 (´º«¸«¹º¸§º«¸¯¹±Ȏ Incompliancewiththe3µ½´ȟ¹InvestmentPolicy,asofSeptember30,2017,the Townminimizedtheinterestraterisk,relatedtocurrenteventsmarketturmoilintheportfolio by:limitingtheeffectivedurationofsecuritytypesnottoexceedtwoyearswiththeexceptionof securitiespurchasesrelatedtoreservefunds;structuringtheinvestmentportfoliosothat securitiesmaturedtomeetcashrequirementsforongoingoperations,therebyavoidingtheneed tosellsecuritiesonthesecondarymarketpriortomaturity;monitoringcreditratingsofportfolio positionstoassurecompliancewithratingrequirementsimposedbythePublicFunds InvestmentAct;andinvestingoperatingfundsprimarilyinshorttermsecurities,moneymarket mutualfunds,orsimilargovernmentinvestmentpools. "¸«ª¯º¸¯¹±Ȏ The3µ½´ȟ¹investmentpolicylimitsinvestmentstoobligationsoftheUnitedStates, StateofTexas,ortheiragenciesandinstrumentalitieswithaninvestmentqualityratingofnot nallyrecognizedinvestmentratingfirm.Other lessthanȠ ȡoritsequivalent,byanatio obligationsmustbeunconditionallyguaranteed(eitherexpressorimplied)bythefullfaithand creditoftheUnitedStatesGovernmentortheissuingU.S.agencyandinvestmentpoolswithan investmentqualitynotlessthanAAAorAAAm,orequivalent,byatleastonenationally recognizedratingservice.AsofSeptember30,2017,allofthe3µ½´ȟ¹purchasedinvestmentsin 51 Town CouncilPage 176 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 USAgenciesObligationswereratedAA+,AAAandAaabyStandard&Poors,Fitchand ,µµª¿ȟ¹ȍrespectively. "»¹ºµª¯§²©¸«ª¯º¸¯¹±ɋª«¶µ¹¯º¹Ȏ Inthecaseofdeposits,thisistheriskthatintheeventofabank failure,the3µ½´ȟ¹depositsmaynotbereturnedtoit.Statestatutesrequirethatalldepositsin financialinstitutionsbeinsuredorfullycollateralizedbyU.S.governmentobligationsorits dinstrumentalitiesordirectobligationsofTexasoritsagenciesandinstrumentalities agenciesan thathaveamarketvalueofnotlessthantheprincipalamountofthedeposits.AsofSeptember 30,2017,themarketvaluesofpledgedsecuritiesandFDICexceededbankbalances. "»¹ºµª¯§²©¸«ª¯º¸¯¹±ɋ¯´¼«¹º³«´º¹Ȏ Foraninvestment,thisistheriskthat,intheeventofthefailure ofthecounterparty,theTownwillnotbeabletorecoverthevalueofitsinvestmentsorcollateral securitiesthatareinthepossessionofanoutsideparty.The3µ½´ȟ¹investmentpolicyrequires thatitwillseektosafekeepingsecuritiesatfinancialinstitutions,avoidingphysicalpossession. Further,alltrades,whereapplicable,areexecutedbydeliveryversuspaymenttoensurethat securitiesaredepositedinthe3µ½´ȟ¹safekeepingaccountpriortothereleaseoffunds. TexPool TexPoolwasestablishedasatrustcompanywiththeTreasureroftheStateofTexasastrustee, segregatedfromallothertrustees,investments,andactivitiesofthetrustcompany.TheState ComptrollerofPublicAccountsexercisesoversightresponsibilityoverTexPool.Oversight includestheabilitytosignificantlyinfluenceoperations,designationofmanagement,and accountabilityforfiscalmatters.Additionally,theStateComptrollerhasestablishedanadvisory boardcomposedofbothparticipantsinTexPoolandotherpersonswhodonothaveabusiness relationshipwithTexPool.Theadvisoryboardmembersreviewtheinvestmentpolicyand managementfeestructure.Finally,Standard&/µµ¸ȟ¹rateTexPoolAAAm.Asarequirementto maintaintherating,weeklyportfolioinformationmustbesubmittedtoStandard&/µµ¸ȟ¹ȍas wellastotheofficeoftheComptrollerofPublicAccountsforreview.AtSeptember30,2017,the fairvalueofthepositioninTexPoolapproximatesfairvalueoftheshares. LOGIC LocalGovernmentInvestmentCooperativeȘȠ+.&("ȡșwasorganizedinconformitywiththe InterlocalCooperationAct,Chapter791oftheTexasGovernmentCode,andoperatesunderthe PublicFundsInvestmentAct,Chapter2256oftheTexasGovernmentCode.ThePublicFunds InvestmentActallowseligiblelocalgovernments,stateagencies,andnonprofitcorporationsof theStateofTexastojointlyinvesttheirfundsinpermittedinvestments. +.&("ȟ¹governingbodyisafivememberBoardofDirectorscomprisedofemployees,officers orelectedofficialsofparticipantGovernmentEntitiesorindividualswhodonothaveabusiness relationshipwiththeCooperativeandarequalifiedtoadviseit.Amaximumoftwoadvisory 52 Town CouncilPage 177 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 boardmembersrepresenttheCoAdministratorsoftheCooperative.AtSeptember30,2017,the fairvalueofthepositioninLOGICapproximatesfairvalueoftheshares. LoneStarInvestmentPool TheLoneStarInvestmentPoolisapublicfundsinvestmentpoolcreatedpursuanttothe InterlocalCooperationAct,TexasGovernmentCode,Chapter791,andthePublicFunds InvestmentAct,TexasGovernmentCode,Chapter2256.TheobjectiveofthePoolistomaintain thesafetyofprincipal,whileprovidingparticipatinggovernmententitieswiththehighest possiblerateofreturnforinvestedfunds.ParticipantsinthePoolownproratainterestsinthe underlyingassetsofthefundinwhichtheyparticipate.A/§¸º¯©¯¶§´ºȟ¹solesourceofpayment fromitsinvestmentinthePoolisthemarketvalueofsuchassets;althoughthePoolseeksto preservethevalueofa/§¸º¯©¯¶§´ºȟ¹investment,itispossibletolosemoneybyinvestinginthe Pool.AtSeptember30,2017,thefairvalueofthepositioninLoneStarInvestmentPool approximatesfairvalueoftheshares. TexCLASS TexasCLASSisalocalgovernmentinvestmentpoolemphasizingsafety,liquidity,convenience andcompetitiveyield.Since1996,TexasCLASShasprovidedTexaspublicentitiesasafeand competitiveinvestmentalternative.TexasCLASSinvestsonlyinsecuritiesallowedbytheTexas es,electedannuallybyits PublicFundsInvestmentAct.Thepoolisgovernedbyaboardoftruste participants.TexasCLASSisratedȞ ³ȟbyStandardand/µµ¸ȟ¹RatingsServices.The Ȟ ³ȟprincipalstabilityfundratingisthehighestassignedtoprincipalstabilitygovernment investmentpoolsandisadirectreflectionofTexas"+ 22ȟ¹outstandingcreditqualityand management.AtSeptember30,2017,thefairvalueofthepositioninTexCLASSapproximates fairvalueoftheshares. 53 Town CouncilPage 178 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 B.Receivables Thefollowingcomprisereceivablebalancesoftheprimarygovernmentatyearend: DebtNonmajorStormDrainage GeneralServiceGovernmentalUtilityTotal Propertytaxes$50,576$14,561$$$65,137 Salestax139,47865,965205,443 Franchisetaxes76,49176,491 Hoteloccupancy42,97542,975 Municipalcourt70,53970,539 EMS185,152185,152 Stormdrainage32,54932,549 Parkservices38,90638,906 ParkLandfeesettlement750,000750,000 Other102,477102,477 Allowance(129,523)(129,523) Total$1,284,096$14,561$108,940$32,549$1,440,146 Thefollowingcomprisereceivablebalancesofthecomponentunitsatyearend: 4BEconomicTIRZ Corporation#1Total Salestaxes$66,071$997$67,068 Total$66,071$997$67,068 54 Town CouncilPage 179 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 C.CapitalAssets Asummaryofchangesingovernmentalactivitiescapitalassetsfortheyearendwasas follows: BeginningRetirements/Ending BalancesAdditionsReclassificationsBalances Capitalassets,notbeingdepreciated: Land$10,446,723$16,946$$10,463,669 Constructioninprogress2,700,5298,134,265(1,511,697)9,323,097 Totalcapitalassetsnotbeingdepreciated13,147,2528,151,211(1,511,697)19,786,766 Capitalassets,beingdepreciated: Buildings1,993,44046,9292,040,369 Improvementsotherthanbuildings55,949,137281,1051,464,76757,695,009 Machineryandequipment2,065,632576,671(35,107)2,607,196 Vehicles1,178,846137,932(115,672)1,201,106 Watersystem5,362,0055,362,005 Infrastructure14,332,06214,332,062 Totalcapitalassetsbeingdepreciated80,881,122995,7081,360,91783,237,747 Lessaccumulateddepreciation Buildings785,76150,899836,660 Improvementsotherthanbuildings20,440,3521,979,12422,419,476 Machineryandequipment1,134,603212,445(15,338)1,331,710 Vehicles936,244114,221(112,443)938,022 Watersystem928,837175,1231,103,960 Infrastructure4,815,016371,8355,186,851 Totalaccumulateddepreciation29,040,8132,903,647(127,781)31,816,679 Netcapitalassetsbeingdepreciated51,840,309(1,907,939)1,488,69851,421,068 Totalcapitalassets$64,987,561$6,243,272$(22,999)$71,207,834 Depreciationexpensewaschargedtogovernmentalfunctionsasfollows: Generalgovernment$357,815 Emergencymedicalservices47,796 Informationsystems31,568 Police141,072 Fire6,884 Parksandrecreation749,575 Communitydevelopment28,733 Streets(Infrastructure)1,540,204 TotalGovernmentalActivitiesDepreciationExpense$2,903,647 55 Town CouncilPage 180 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 Asummaryofchangesinbusinesstypeactivitiescapitalassetsfortheyearendwasasfollows : BeginningRetirements/Ending BalancesAdditionsReclassificationsBalances Capitalassets,beingdepreciated: Infrastructure$2,039,766$$$2,039,766 Machineryandequipment24,11224,112 Totalcapitalassetsbeingdepreciated2,063,8782,063,878 Lessaccumulateddepreciation Infrastructure4,2192,3876,606 Machineryandequipment74,31351,083125,396 Totalaccumulateddepreciation78,53253,470132,002 Netcapitalassetsbeingdepreciated1,985,346(53,470)1,931,876 Totalcapitalassets$1,985,346$(53,470)$$1,931,876 Depreciationexpensewaschargedtobusinesstypeactivitiesasfollows: TrophyClubPark$2,387 StormDrainageUtility51,083 TotalBusinesstypeActivitiesDepreciationExpense$53,470 Also,thediscreetlypresentedcomponentunit,4BEconomicCorporation,heldlandtotaling $2,538,765asofSeptember30,2017. 56 Town CouncilPage 181 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 D.LongtermDebt TheTownperiodicallyissuesgeneralobligationbondsandcontractualobligationstoprovide fundsforgeneralgovernmentpurposes.TheTownalsoperiodicallyutilizesnotesandcapital leasestoprovidefinancingforgeneralgovernmentpurposes.Ingeneral,theTownusesthe dpension debtservicefundandgeneralfundtoliquidategovernmentallongtermliabilitiesan liabilities/OPEB,respectively.Thefollowingisasummaryofchangesinthe3µ½´ȟ¹totallong termliabilitiesfortheyearendedSeptember30,2017. Amounts BeginningEndingDueWithin BalanceAdditionsRetiredBalanceOneYear GovernmentalActivities: Bonds,notesandother payables: GeneralObligationBonds$12,375,000$$(925,000)$11,450,000$810,000 CertificatesofObligation7,961,0004,445,000(338,000)12,068,000653,000 SpecialAssessmentBonds25,710,479(304,004)25,406,47577,898 Lessdeferredamounts: Forpremiums4,916,763128,317(290,622)4,754,458 TotalBondsPayable50,963,2424,573,317(1,857,626)53,678,9331,540,898 OPEBLiability88,40015,640104,040 Netpensionliability2,835,287(386,466)2,448,821 Compensatedabsences185,626260,934(189,450)257,110231,399 TotalGovernmentalActivities$54,072,555$4,849,891$(2,433,542)$56,488,904$1,772,297 Longtermliabilitiesdueinmorethanoneyear$54,716,607 BusinessTypeActivities: CertificatesofObligation$1,275,000$$(145,000)$1,130,000$150,000 Lessdeferredamounts: Forpremiums30,200(4,421)25,779 TotalBusinessTypeActivities 1,305,200(149,421)1,155,779150,000 Longtermliabilitiesdueinmorethanoneyear$1,005,779 ComponentUnitActivities: CertificatesofObligation$2,585,000$$(100,000)$2,485,000$100,000 Lessdeferredamounts: Fordiscounts(25,206)1,332(23,874) TotalComponentUnitActivities$2,559,794$$(98,668)$2,461,126$100,000 Longtermliabilitiesdueinmorethanoneyear$2,361,126 57 Town CouncilPage 182 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 Longtermliabilitiesapplicabletothe3µ½´ȟ¹governmentalactivitiesarenotdueandpayablein thecurrentperiodandaccordingly,arenotreportedasfundliabilitiesinthegovernmental funds.Interestonlongtermdebtisnotaccruedingovernmentalfunds,butratherisrecognized asanexpenditurewhendue.TheTownintendstoretireallofitsgenerallongtermliabilities, plusaccruedinterest,frompropertytaxesandothercurrentrevenuesfromthedebtservicefund ashasbeendoneinprioryears.Theproprietaryfundtypelongtermdebtwillberepaid,plus d accruedinterest,fromoperatingrevenuesoftherespectivefund.Longtermdebtatyearen wascomprisedofthefollowingdebtissues : GovernmentalActivities: YearAverage InterestofFinalAnnualOriginalBalance DescriptionIssueMaturityRatePaymentAmount9/30/2017 GeneralObligationBonds: Improvements4.004.10%20072018296,364$$3,260,000$165,000 Improvements3.004.13%20102030250,0005,000,0003,760,000 Refunding2.004.00%20102022232,5002,790,000980,000 Refunding2.18%20152025203,0002,030,0001,640,000 Improvements2.003.00%20162036262,2505,245,0004,905,000 $11,450,000 CertificateofObligations: CombinationTaxand RevenueSeries20043.504.75%20042024$32,500$650,000$233,000 CertificatesofObligation Series20132.503.25%2013202886,6671,300,0001,085,000 CertificatesofObligation Series20142.003.75%20142034125,0002,500,0002,220,000 CertificatesofObligation Series20162.004.00%20162036210,5004,210,0004,085,000 CertificatesofObligation Series20172.503.00%20172037222,2504,445,0004,445,000 $12,068,000 58 Town CouncilPage 183 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 BusinesstypeActivities: YearAverage InterestofFinalAnnualOriginalBalance DescriptionRateIssueMaturityPaymentAmount9/30/2017 CertificatesofObligation Series20132.503.00%20132024154,545$$1,700,000$1,130,000 $1,130,000 ComponentUnitActivities: YearAverage InterestofFinalAnnualOriginalBalance DescriptionRateIssueMaturityPaymentAmount9/30/2017 CertificatesofObligation Series20151.004.75%20152035134,500$$2,690,000$2,485,000 $2,485,000 InJune,2017theTownissued$4,445,000inCertificatesofObligation.Proceedsfromthesaleof certificatesaretobeusedforthepurposeofprovidingfundsforthedesign,developmentand constructiontoextendandexpandparkingfacilitiesforTownpublicparks,includingdriveway improvementsandrelatedstormdrainageimprovements,andincludingtheacquisitionoflandto expandstreets,thoroughfares,sidewalks,bridesandotherpublicwaysoftheTown. 59 Town CouncilPage 184 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 Theannualrequirementstoamortizelongtermdebtoutstandingofgovernmentalactivitiesasof September30,2017,areasfollows: GovernmentalActivities YearEndingGeneralObligationBondsTotal September30,PrincipalInterestRequirements 2018$810,000$351,933$1,161,933 2019835,000326,3111,161,311 2020870,000302,9831,172,983 2021890,000276,2871,166,287 2022925,000246,8911,171,891 202320273,445,000851,1664,296,166 202820322,445,000355,7382,800,738 203320371,230,00084,9251,314,925 Total$11,450,000$2,796,234$14,246,234 YearEndingCertificateofObligationBondsTotal September30,PrincipalInterestRequirements 2018$653,000$390,434$1,043,434 2019778,000338,7761,116,776 2020848,000314,6831,162,683 2021563,000288,397851,397 2022588,000269,358857,358 202320273,128,0001,068,2844,196,284 202820323,005,000634,7693,639,769 203320372,505,000199,9252,704,925 Total$12,068,000$3,504,626$15,572,626 YearEndingSpecialAssessmentBondsTotal September30,PrincipalInterestRequirements 2018$77,898$2,058,884$2,136,782 201925,5772,141,2042,166,781 20201,278,000911,7812,189,781 20211,343,000886,0812,229,081 20221,403,000855,7062,258,706 202320278,202,0003,600,88011,802,880 2028203210,570,0002,077,30612,647,306 203320372,507,000126,0002,633,000 Total$25,406,475$12,657,842$38,064,317 60 Town CouncilPage 185 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 Theannualrequirementstoamortizelongtermdebtoutstandingofbusinesstypeactivitiesasof September30,2017,areasfollows: BusinessTypeActivities YearEndingTotalCertificatesofObligation September30,PrincipalInterestRequirements 2018150,000$$28,088$178,088 2019155,00024,275179,275 2020155,00020,400175,400 2021160,00016,462176,462 2022165,00012,194177,194 20232027345,00010,213355,213 Total1,130,000$$111,632$1,241,632 Theannualrequirementstoamortizelongtermdebtoutstandingofcomponentunitsasof September30,2017,areasfollows: ComponentUnitActivities YearEndingTotalCertificatesofObligation September30,PrincipalInterestRequirements 2018100,000$$100,823$200,823 2019105,00099,023204,023 2020105,00096,555201,555 2021110,00093,668203,668 2022110,00090,258200,258 20232027625,000385,1431,010,143 20282032775,000241,0501,016,050 20332037555,00053,675608,675 Total2,485,000$$1,160,193$3,645,193 Thegeneralfundhasbeenusedtoliquidatecompensatedabsencesandcapitalleaseliabilities. E.DeferredChargesonRefunding Adeferredchargeresultingfromtheissuanceofthe2010and2015generalobligationrefunding bondshasbeenrecordedasadeferredoutflowofresourcesandisbeingamortizedtointerest expenseoverthetermoftherefundeddebt.ThenetbalanceoutstandingasofSeptember30, 2017was$3,358,334.Currentyearamortizationexpensetotaled$222,757. 61 Town CouncilPage 186 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 F.InterfundTransactions AsummaryofinterfundreceivablesandpayablesbalancesatSeptember30,2017isasfollows: ReceivablefundPayablefundAmount GeneralTrophyClubPark$31,628 GeneralNonmajor48,732 DebtserviceStormDrainageUtility24,168 DebtserviceCapitalProjects275,776 NonmajorCapitalProjects90,007 NonmajorGeneral8,504 NonmajorStormDrainageUtility12,718 Total$491,533 Interfundbalancesresultedfromthetimingdifferencebetweenthedatesthat(1)interfund goodsandservicesareprovidedorreimbursableexpendituresoccur,(2)transactionsare recordedintheaccountingsystem,and(3)paymentsbetweenfundsaremade.Allbalancesare expectedtobepaidinthesubsequentyear. Transfersbetweenfundsduringtheyearareasfollows: TransferinTransferoutAmount CapitalProjectsGeneral$720,934 DebtServiceStormDrainageUtility26,887 GeneralStormDrainageUtility40,000 DebtServiceCapitalProjects7,454 GeneralTrophyClubPark20,000 DebtServiceNonmajor25,000 GeneralNonmajor3,000 DebtServiceNonmajor149,975 Total$993,250 Transferswereusedtoreclassifydebtservice,capitalexpenditures,andtotransferfundstothe generalfundforadministrativecosts. 62 Town CouncilPage 187 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 NOTE5.OTHERINFORMATION A.RiskManagement TheTownisexposedtovariousrisksoflossrelatedtotorts;theftof,damageto,anddestruction ofassets;businessinterruption;errorsandomissions;injuriestoemployees;employeehealth benefits;andotherclaimsofvariousnatures.TheTownparticipatesintheTexasMunicipal LeagueIntergovernmentalRiskPool(Pool)whichprovidesprotectionforrisksofloss. PremiumsarepaidtothePoolthatretainstheriskoflossbeyondthe3µ½´ȟ¹policydeductibles. Anylossesreportedbutunsettledorincurredandnotreported,arebelievedtobeinsignificant tothe3µ½´ȟ¹basicfinancialstatements.Forthelastthreeyears,therehavebeennosignificant reductionsofinsurancecoverageorinsurancesettlementsinexcessofinsurancecoverage. B.ContingentLiabilities TheTownisinvolvedinlawsuitswithotherpartiesfromtimetotime.Whiletheultimateresult ofthesematterscannotbepredictedwithcertainty,theTowndoesnotexpectthemtohavea materiallyadverseeffectonthebasicfinancialstatements. Amountsreceivedorreceivablefromgrantingagenciesaresubjecttoauditandadjustmentby grantoragencies,principallythefederalgovernment.Anydisallowedclaims,including amountsalreadycollected,mayconstitutealiabilityoftheapplicablefunds.Theamountsof expenditureswhichmaybedisallowedbythegrantorcannotbedeterminedatthistime althoughtheTownexpectssuchamounts,ifany,tobeimmaterial. Liabilitiesarereportedwhenitisprobablethatalosshasoccurredandtheamountoftheloss canbereasonablyestimated.Liabilitiesincludeanamountforclaimsthathavebeenincurred butnotreported.Claimliabilitiesarecalculatedconsideringtheeffectsofinflation,recentclaim settlementtrends,includingfrequencyandamountofpayouts,andothereconomicandsocial factors. C.Contingencies Amountsreceivedorreceivablefromgrantingagenciesaresubjecttoauditandadjustmentby grantoragencies,principallythefederalgovernment.Anydisallowedclaims,includingamounts alreadycollected,mayconstitutealiabilityoftheapplicablefunds.Theamountsof expenditureswhichmaybedisallowedbythegrantorcannotbedeterminedatthistime althoughtheTownexpectssuchamounts,ifany,tobeimmaterial. Liabilitiesarereportedwhenitisprobablethatalosshasoccurredandtheamountoftheloss canbereasonablyestimated.Liabilitiesincludeanamountforclaimsthathavebeenincurred butnotreported.Claimliabilitiesarecalculatedconsideringtheeffectsofinflation,recentclaim 63 Town CouncilPage 188 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 settlementtrends,includingfrequencyandamountofpayouts,andothereconomicandsocial factors. D.DefinedBenefitPensionPlans TexasMunicipalRetirementSystem PlanDescription TheTownofTrophyClub,Texasparticipatesasoneof872plansinthenontraditional,joint contributory,hybriddefinedbenefitpensionplanadministeredbytheTexasMunicipal RetirementSystem(TMRS).TMRSisanagencycreatedbytheStateofTexasandadministered inaccordancewiththeTMRSAct,SubtitleG,Title8,TexasGovernmentCode(theTMRSAct)as anagentmultipleemployerretirementsystemformunicipalemployeesintheStateofTexas. TheTMRSActplacesthegeneraladministrationandmanagementoftheSystemwithasix e, memberBoardofTrustees.AlthoughtheGovernor,withtheadviceandconsentoftheSenat appointstheBoard,TMRSisnotfiscallydependentontheStateofTexas.3,12ȟ¹defined benefitpensionplanisataxqualifiedplanunderSection401(a)oftheInternalRevenueCode. TMRSissuesapubliclyavailablecomprehensiveannualfinancialreport(CAFR)thatcanbe obtainedatwww.tmrs.com. AlleligibleemployeesoftheTownarerequiredtoparticipateinTMRS. BenefitsProvided TMRSprovidesretirement,disability,anddeathbenefits.Benefitprovisionsareadoptedbythe governingbodyoftheTown,withintheoptionsavailableinthestatestatutesgoverningTMRS. Atretirement,thebenefitiscalculatedasifthesumofthe«³¶²µ¿««ȟ¹contributions,with interest,andthetownfinancedmonetarycreditswithinterestwereusedtopurchasean annuity.Membersmaychoosetoreceivetheirretirementbenefitinoneofsevenpayments options.MembersmayalsochoosetoreceiveaportionoftheirbenefitasaPartialLumpSum Distributioninanamountequalto12,24,or36monthlypayments,whichcannotexceed75%of thememberȟ¹depositsandinterest. TheplanprovisionsareadoptedbythegoverningbodyoftheTown,withintheoptions availableinthestatestatutesgoverningTMRSandwithintheactuarialconstraintsalsointhe statutes. 64 Town CouncilPage 189 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 PlanprovisionsfortheTownwereasfollows: PlanYear2016PlanYear2015 Employeedepositrate7%7% Matchingratio(townto2to12to1 employee) Yearsrequiredforvesting55 Serviceretirementeligibility (expressedasage/yearsof60/5,0/20 60/5,0/20 service) Updatedservicecredit100%RepeatingTransfers100%RepeatingTransfers Annuityincrease(toretirees)30%ofCPIrepeating30%ofCPIrepeating TheTownalsoparticipatesinSocialSecurity. Employeescoveredbybenefitterms AttheDecember31,2016valuationandmeasurementdate,thefollowingemployeeswere coveredbythebenefitterms: Inactiveemployeesorbeneficiariescurrentlyreceivingbenefits29 Inactiveemployeesentitledtobutnotyetreceivingbenefits96 Activeemployees69 Total194 Contributions ThecontributionratesforemployeesinTMRSareeither5%,6%,or7%ofemployeegross earnings,andtheTownmatchingpercentagesareeither100%,150%,or200%,bothasadopted bythegoverningbodyoftheTown.UnderthestatelawgoverningTMRS,thecontributionrate foreachtownisdeterminedannuallybytheactuary,usingtheEntryAgeNormal(EAN) actuarialcostmethod.Theactuariallydeterminedrateistheestimatedamountnecessaryto financethecostofbenefitsearnedbyemployeesduringtheyear,withanadditionalamountto financeanyunfundedaccruedliability. xaswererequiredtocontribute7%oftheirannual EmployeesfortheTownofTrophyClub,Te grossearningsduringthefiscalyear.ThecontributionratesfortheTownofTrophyClub,Texas were12.63%and13.13%incalendaryears2016and2017,respectively.The3µ½´ȟ¹contributions 65 Town CouncilPage 190 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 toTMRSfortheyearendedSeptember30,2017,were$592,374andwereequaltotherequired contributions. NetPensionLiability The3µ½´ȟ¹NetPensionLiability(NPL)wasmeasuredasofDecember31,2016,andtheTotal PensionLiability(TPL)usedtocalculatetheNetPensionLiabilitywasdeterminedbyan actuarialvaluationasofthatdate. TheTotalPensionLiabilityintheDecember31,2016actuarialvaluationwasdeterminedusing thefollowingactuarialassumptions: Inflation2.5%peryear Overallpayrollgrowth3.5%to10.5%,includinginflation InvestmentRateofReturn6.75%,netofpensionplaninvestmentexpense,including inflation Salaryincreaseswerebasedonaservicerelatedtable.Mortalityratesforactivemembers, retirees,andbene Ķ ciarieswerebasedonthegenderdistinctRP2000CombinedHealthy MortalityTableswithBlueCollarAdjustment,withmaleratesmultipliedby109%andfemale ratesmultipliedby103%.TheratesareprojectedonafullygenerationalbasisbyscaleBBto accountforfuturemortalityimprovements.Fordisabledannuitants,thegenderdistinctRP2000 CombinedHealthyMortalityTableswithBlueCollarAdjustmentareusedwithmalesrates h multipliedby109%andfemaleratesmultipliedby103%witha3yearsetforwardforbot malesandfemales.Inaddition,a3%minimummortalityrateisappliedtore ķ ectthe impairmentforyoungermemberswhobecomedisabled.Theratesareprojectedonafully generationalbasisbyscaleBBtoaccountforfuturemortalityimprovementssubjecttothe3% ķ oor. 16,valuationwerebasedontheresultsof ActuarialassumptionsusedintheDecember31,20 actuarialexperiencestudies.TheexperiencestudyinTMRSwasfortheperiodDecember31, 2010throughDecember31,2014.Healthypostretirementmortalityratesandannuitypurchase rateswereupdatedbasedonaMortalityExperienceInvestigationStudycovering2009through 2011,anddatedDecember31,2013.Theseassumptionswere Ķ rstusedintheDecember31,2013 valuation,alongwithachangetotheEntryAgeNormal(EAN)actuarialcostmethod. Assumptionsarereviewedannually.Planassetsaremanagedonatotalreturnbasiswithan naswellastheproductionofincome,inordertosatisfythe emphasisonbothcapitalappreciatio shorttermandlongtermfundingneedsofTMRS. Thelongtermexpectedrateofreturnonpensionplaninvestmentswasdeterminedusinga buildingblockmethodinwhichbestestimaterangesofexpectedfuturerealratesofreturn (expectedreturns,netofpensionplaninvestmentexpenseandin ķ ation)aredevelopedforeach 66 Town CouncilPage 191 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 majorassetclass.Theserangesarecombinedtoproducethelongtermexpectedrateofreturn byweightingtheexpectedfuturerealratesofreturnbythetargetassetallocationpercentage andbyaddingexpectedin ķ ation.Indeterminingtheirbestestimateofarecommended investmentreturnassumptionunderthevariousalternativeassetallocationportfolios,GRS focusedontheareabetween(1)arithmeticmean(aggressive)withoutanadjustmentfortime (conservative)and(2)thegeometricmean(conservative)withanadjustmentfortime (aggressive).Thetargetallocationandbestestimatesofrealratesofreturnforeachmajorasset classin Ķ scalyear2017aresummarizedinthefollowingtable: AssetClassTargetAllocationLongTermExpectedReal RateofReturn(Arithmetic) DomesticEquity17.5%4.55% InternationalEquity17.5%6.35% CoreFixedIncome10.0%1.00% NonCoreFixedIncome20.0%4.15% RealReturn10.0%4.15% RealEstate10.0%4.75% AbsoluteReturn10.0%4.00% PrivateEquity5.0%7.75% Total100.0% DiscountRate ThediscountrateusedtomeasuretheTotalPensionLiabilitywas6.75%.Theprojectionofcash flowsusedtodeterminethediscountrateassumedthatemployeecontributionswillremainat thecurrent7.0%andemployercontributionswillbemadeattheratesspecifiedinstatute.Based onthatassumption,thepension¶²§´ȟ¹FiduciaryNetPositionwasprojectedtobeavailableto makeallprojectedfuturebenefitpaymentsofcurrentplanmembers.Therefore,thelongterm expectedrateofreturnonpensionplaninvestmentswasappliedtoallperiodsofprojected benefitpaymentstodeterminetheTotalPensionLiability. 67 Town CouncilPage 192 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 ChangesinNetPensionLiability: TotalPensionPlanFiduciaryNetNetPension Liability(a)Position(b)Liability(a)ɋ(b) Balanceat12/31/15$16,324,632$13,489,345$2,835,287 Changesfortheyear: ServiceCost795,448795,448 Interest1,113,5551,113,555 Differencebetweenexpectedand actualexperience(471,044)(471,044) Changesofassumptions Contributionsɋemployer593,840(593,840) Contributionsɋemployee329,281(329,281) Netinvestmentincome912,155(912,155) Benefitpayments,including refundsofemp.contributions(450,496)(450,496) Administrativeexpense(10,296)10,296 Otherchanges(555)555 Netchanges987,4631,373,929(386,466) Balanceat12/31/16$17,312,095$14,863,274$2,448,821 SensitivityoftheNetPositionLiabilitytoChangesintheDiscountRate ThefollowingpresentsthenetpensionliabilityoftheTown,calculatedusingthediscountrateof 6.75%,aswellaswhatthe3µ½´ȟ¹netpensionliabilitywouldbeifitwerecalculatedusinga rcentagepointlower(5.75%)or1percentagepointhigher(7.75%)than discountratethatis1pe thecurrentrate: 1%DecreaseCurrentSingleRate1%Increase 5.75%Assumption6.75%7.75% $ 5,226,559$2,448,821$212,548 PensionPlanFiduciaryNetPosition Detailedinformationaboutthepension¶²§´ȟ¹FiduciaryNetPositionisavailableinaseparately issuedTMRSfinancialreport.ThatreportmaybeobtainedontheInternetatwww.tmrs.com. PensionExpenseandDeferredOutflowsofResourcesandDeferredInflowsofResources RelatedtoPensions: FortheyearendedSeptember30,2017,theTownrecognizedapensionexpenseof$789,950.This amountisincludedaspartofexpenseswithinthefunctionalprogramactivities. 68 Town CouncilPage 193 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 AtSeptember30,2017,theTownreporteddeferredoutflowsandinflowsofresourcesrelatedto pensionsfromthefollowingsources: DeferredDeferred OutflowsofResources(Inflows)ofResources PrimaryGovernment: Differencebetweenprojectedandactual investmentearnings $598,890$ Changesinactuarialassumptions 183,985 Differencesbetweenexpectedandactual economicexperience (481,757) Contributionssubsequenttothe measurementdate 433,649 Total $1,216,524$(481,757) Deferredoutflowsofresourcesrelatedtopensionsresultingfromcontributionssubsequenttothe measurementdateof$433,649willberecognizedasareductionofthenetpensionliabilityforthe yearendingSeptember30,2018. Otheramountsreportedasdeferredoutflowsandinflowsofresourcesrelatedtopensionswillbe recognizedinpensionexpenseasfollows: YearendedDecember31: 2017$109,632 2018119,211 201972,598 2020(323) 2021 Thereafter $301,118 SupplementalDeathBenefitsFund TheTownalsoparticipatesinthecostsharingmultipleemployerdefinedbenefitgroupterm lifeinsuranceplanoperatedbytheTexasMunicipalRetirementSystem(TMRS)knownas theSupplementalDeathBenefitsFund(SDBF).TheTownelected,byordinance,toprovide grouptermlifeinsurancecoveragetobothcurrentandretiredemployees.TheTownmay terminatecoverageunderanddiscontinueparticipationintheSDBFbyadoptingan ordinancebeforeNovember1ofanyyeartobeeffectivethefollowingJanuary1. 69 Town CouncilPage 194 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 Thedeathbenefitforactiveemployeesprovidesalumpsumpaymentapproximatelyequal tothe«³¶²µ¿««ȟ¹annualsalary(calculatedbasedonthe«³¶²µ¿««ȟ¹actualearnings,forthe 12monthperiodprecedingthemonthofdeath);retiredemployeesareinsuredfor$7,500; thiscoverageisanȠµº®«¸postemployment¨«´«¬¯ºȍȡorOPEB. TheTownofferssupplementaldeathto:PlanYear2016PlanYear2015 Activeemployees(yesorno)YesYes Retirees(yesorno)YesYes TheTowncontributestotheSDBFatacontractuallyrequiredrateasdeterminedbyan annualactuarialvaluation.Therateisequaltothecostofprovidingoneyeartermlife insurance.ThefundingpolicyfortheSDBFprogramistoassurethatadequateresourcesare availabletomeetalldeathbenefitpaymentsfortheupcomingyear;theintentisnottopre fundretireetermlifeinsuranceduring«³¶²µ¿««¹ȟentirecareers. The3µ½´ȟ¹contributionstotheTMRSSDBFfortheyearsended2017,2016and2015were $912,$482and$349,respectively,whichequaledtherequiredcontributionseachyear. (RETIREE-only portion of the rate) Plan/AnnualRequiredActualContributionPercentageofARC CalendarYearContributionMadeContributed (Rate)(Rate) 20150.01%0.01%100.0% 20160.01%0.01%100.0% 20170.02%0.02%100.0% E.OtherPostEmploymentBenefits PlanDescription TheTownprovidespostemploymentmedical,dental,andvisionbenefits(OPEB)foreligible retirees,theirspousesanddependentsthroughasingleemployerplanwithBlueCross BlueShield(BCBS),whichcoversbothactiveandretiredmembers. 70 Town CouncilPage 195 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 AsofSeptember30,2017,membershipconsistedof: Retireesorbeneficiariescurrentlyreceivingbenefits Activeemployees74 Total74 Thethreeoptionalbenefitlevels,BCBSPlanMME04,MME09andMMH2,arethesamefor retireesasthoseaffordedtoactiveemployees.Regularfulltimeemployeesretiringfromthe Townhavetheoptiontocontinuemedicalinsurancecoverageuntiltheretireebecomeseligible calplan. forMedicareoriseligibletobecoveredunderanothermedi FundingPolicy ThebenefitlevelsandcontributionratesareapprovedannuallybytheTownmanagementand theTownCouncilaspartofthebudgetprocess.BytheTownnotcontributinganythingtoward roughensuringtheannual thisplaninadvance,theTownemploysapayasyougomethodth retireecontributionsareequaltothebenefitsthatarepaidonbehalfoftheretirees. ThemonthlyRetireehealthcoveragecontributionratesforofferedbenefitlevelsareasfollows: HighPlanStandardPlanHASPlan MME04MME09MMH2 SingleCoverage$488$440$330 Single+Souse$1,302$1,174$881 Single+Children$923$832$625 Single+Family$1,641$1,479$1,111 Anirrevocabletrusthasnotbeenestablished;therefore,theplanisnotaccountedforasatrust fund.Theplandoesnotissueaseparatefinancialreport. AnnualOPEBCostandNetOPEBObligation The3µ½´ȟ¹annualOPEBcostiscalculatedbasedontheannualrequiredcontributionofthe Town(ARC),anamountactuariallydeterminedinaccordancewiththeparametersofGASB45. TheARCrepresentsaleveloffundingthat,ifpaidonanongoingbasis,isprojectedtocover normalcosteachyearandtoamortizeanyunfundedactuarialliabilitiesoveraperiodnotto exceedthirtyyears. Thefollowingtableshowsthecomponentsofthe3µ½´ȟ¹annualOPEBcostfortheyear,the amountcontributedtotheplan,andchangesinthe3µ½´ȟ¹netOPEBobligation. 71 Town CouncilPage 196 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 Annualrequiredcontribution$15,320 InterestonOPEBobligation3,978 Adjustmenttoannualrequiredcontribution(3,658) AnnualOPEBcostexpense15,640 Contributionsmade ChangeinnetOPEBobligation15,640 NetOPEBObligationbeginningofyear88,400 NetOPEBObligationendofyear$104,040 The3µ½´ȟ¹annualOPEBcost,thepercentageofannualOPEBcostcontributedtotheplan,and thenetOPEBobligationfor2017andthetwoprecedingyearsareasfollows: Percentageof FiscalAnnualOPEBAnnualOPEBNetOPEBObligation CostContributed YearCostBeginningEnding 2015$15,6800.00%$57,136$72,816 2016$15,5840.00%$72,816$88,400 2017$15,6400.00%$88,400104,040 FundedStatusandFundingProgress AsofOctober1,2014,themostrecentactuarialvaluationdate,theactuarialaccruedliabilityfor benefitswas$90,490,allofwhichwasunfunded.Thecoveredpayroll(annualpayrollofactive employeescoveredbytheplan)forfiscalyear2017was$4,559,563,andtheratiooftheunfunded actuarialaccruedliabilitytothecoveredpayrollwas1.98%. Actuarialvaluationsofanongoingprograminvolveestimatesofthevalueofreportedamounts andassumptionsabouttheprobabilityofoccurrenceofeventsfarintothefuture.Examples includeassumptionsaboutfutureemployment,mortality,andthehealthcarecosttrend. AmountsdeterminedregardingthefundedstatusoftheProgramandtheannualrequired contributionsoftheemployeraresubjecttocontinualrevisionasactualresultsarecompared withpastexpectationsandnewestimatesaremadeaboutthefuture.Thescheduleoffunding ncialstatements,presentsmultiyear progress,presentedasRSIfollowingthenotestothefina trendinformationaboutwhethertheactuarialvalueofProgram,assetsisincreasingor decreasingovertimerelativetotheactuarialaccruedliabilitiesforbenefits. ActuarialMethodsandAssumptions Projectionsofbenefitsarebasedonsubstantiveplan(theplanunderstoodbytheemployerand rs)andincludethetypeofbenefitsinforceatthevaluationdateandthepatternof planmembe sharingbenefitsbetweentheTownandtheplanmembersatthatpoint.Theactuarialmethods andassumptionsusedincludetechniquesthataredesignedtoreduceshorttermvolatilityin 72 Town CouncilPage 197 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NOTESTOFINANCIALSTATEMENTS,Continued September30,2017 actuarialaccruedliabilitiesandactuarialvalueofassets,consistentwiththelongterm perspectiveofthecalculations. Intheactuarialvaluation,theprojectedunitcreditactuarialcostmethodwasused.Theactuarial assumptionsincludea4.5%investmentrateofreturn(netofadministrativeexpenses)andan annualhealthcarecosttrendrateof8.0%initially,reducedbydecrementstoanultimaterateof 4.5%after7years.Therateofinflationisassumedtobe3%. F.PUBLICUTILITYDISTRICTNO.1 OnMay7,2007,theTrophyClubTownCouncilapprovedResolution200708authorizingand providingforthecreationofaPublicImprovementDistrict.TrophyClubPublicImprovement DistrictNo.1consistsofapproximately609.68acreswithinthecorporatelimitsoftheTownof TrophyClub.ThisDistrictwascreatedinaccordancewithChapter372oftheTexasLocal GovernmentCode. OnDecember13,2007theTrophyClubTownCouncilapprovedtheissuanceandsaleof $27,500,000inbonds,knownasTrophyClubPublicImprovementNo.1SpecialAssessment RevenueBonds,Series2007.Thesebondswereauthorizedinordertofinancetheauthorized improvementsfoundintheServiceandAssessmentPlan.AnAssessmentoneachproperty ntandhasno locatedintheDistrictwillrepaythebonds.TheTownisactingonlyasanage obligationtosupportpaymentofthebonds,directlyorindirectly. TheServiceandAssessmentPlanincludedthefollowingprojects:ThoroughfareImprovements, WaterDistributionSystemImprovements,WastewaterCollectionSystemImprovements,Trails andOpenSpace,ElevatedWaterStorage,ThoroughfareLandscapingandIrrigation,Screening WallsandEntryFeatures,PublicParks,DrainageImprovements,andConstruction Administration. InDecember,2015,theTownrefundedthePublicImprovementDistrictNo.1bonds.Total interestsavingsfortheover1,400residencesinthePublicImprovementDistrictexceeded $16.4M,withanetpresentvaluesavingsofover33%oftherefundedamount. G.SUBSEQUENTEVENTS TheTownapprovedasettlementagreementonJanuary27,2018intheamountof$750,000tobe usedspecificallyforParklandDedicationfees.TheTownreceived$500,000ofthesettlement amountinFebruaryof2018,andtheremaining$250,000willbereceivedoverthenextthreeto fiveyears. TherewerenoadditionalmaterialsubsequenteventsthroughMarch23,2018,thedatethe financialstatementswereissued. 73 Town CouncilPage 198 of 271Meeting Date: March 27, 2018 Town CouncilPage 199 of 271Meeting Date: March 27, 2018 74 REQUIREDSUPPLEMENTARYINFORMATION Town CouncilPage 200 of 271Meeting Date: March 27, 2018 75 76 Town CouncilPage 201 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas STATEMENTOFREVENUES,EXPENDITURES,ANDCHANGES INFUNDBALANCEBUDGETANDACTUAL GENERALFUND FortheYearEndedSeptember30,2017 Variancewith FinalBudget OriginalFinal Positive BudgetBudgetActual(Negative) Revenues Propertytax$6,185,631$6,185,631$6,267,051$81,420 Salestax900,395900,395883,612(16,783) Franchiseandlocaltaxes986,798986,798888,863(97,935) Licenseandpermits552,200552,200333,780(218,420) Intergovernmental713,184581,633(131,551) Chargesforservices279,964752,201806,81554,614 Finesandforfeitures361,907361,907349,503(12,404) Investmentincome30,00030,00048,50318,503 Otherrevenue144,394144,394117,186(27,208) TotalRevenues 9,441,28910,626,71010,276,946(349,764) Expenditures Current: Managersoffice801,974786,974577,140209,834 Humanresources198,268198,268170,40427,864 Finance451,778466,778442,79823,980 Municipalcourt83,77583,77581,3772,398 Police2,353,4522,353,4522,092,872260,580 Fire1,129,0011,031,70097,301 Facilitiesmanagement148,671148,671127,33021,341 Emergencymedicalservices1,022,6421,109,203979,623129,580 Streets423,931423,931381,75642,175 Communitydevelopment656,220656,220507,011149,209 Parksandrecreation2,563,3662,563,3662,458,111105,255 Legal130,663130,663110,14020,523 Informationservices663,244663,244490,098173,146 TotalExpenditures 9,497,98410,713,5469,450,3601,263,186 RevenuesOver(Under) (56,695)(86,836)826,586913,422 OtherFinancingSources(Uses) Transfersin63,00063,00063,000 Transfers(out)(250,000)(750,000)(720,934)29,066 TotalOtherFinancingSources(187,000)(687,000)(657,934)29,066 243,695)$(773,836)168,652$942,488 NetChangeinFundBalance$( Beginningfundbalance4,194,162 EndingFundBalance$4,362,814 NotestoRequiredSupplementaryInformation 1.Annualbudgetsareadoptedonabasisconsistentwithgenerallyacceptedaccountingprinciples(GAAP). Town CouncilPage 202 of 271Meeting Date: March 27, 2018 77 TownofTrophyClub,Texas SCHEDULEOFCHANGESINNETPENSIONLIABILITYANDRELATEDRATIOS YearsEnded: 1 12/31/201612/31/201512/31/2014 Totalpensionliability Servicecost$795,448$804,453$809,057 Interest1,113,5551,053,745970,682 Changesinbenefitterms(1,544,038) Differencesbetweenexpectedandactual experience (471,044)(237,279)(49,303) Changesofassumptions368,895 Benefitpayments,includingrefundsof participantcontributions (450,496)(632,921)(450,100) Netchangeintotalpensionliability 987,4631,356,893(263,702) Totalpensionliabilitybeginning 16,324,63214,967,73915,231,441 Totalpensionliabilityending(a)17,312,09516,324,63214,967,739 Planfiduciarynetposition Contributionsemployer$593,840$658,543$660,364 Contributionsmembers329,281340,458316,613 Netinvestmentincome912,15519,357681,774 Benefitpayments,includingrefundsof participantcontributions (450,496)(632,921)(450,100) Administrativeexpenses(10,296)(11,788)(7,117) Other(555)(582)(585) Netchangeinplanfiduciarynetposition 1,373,929373,0671,200,949 Planfiduciarynetpositionbeginning 13,489,34513,116,27811,915,329 Planfiduciarynetpositionending(b)$14,863,274$13,489,345$13,116,278 Fundsnetpensionliabilityending(a)(b)$2,448,821$2,835,287$1,851,461 Planfiduciarynetpositionasapercentageof 85.85%82.63%87.63% $$ Coveredemployeepayroll 4,704,0114,863,685$4,523,041 Fundsnetpositionasapercentageofcovered 52.06%58.30%40.93% Notestoschedule: la 1)Thisscheduleispresentedtoillustratetherequirementtoshowinformationfortenyears.However,unti fulltenyeartrendiscompiled,onlyavailableinformationisshown. 78 Town CouncilPage 203 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas SCHEDULEOFEMPLOYERCONTRIBUTIONSTOPENSIONPLAN YearsEnded: 1 9/30/20179/30/20169/30/2015 Actuariallydeterminedemployercontributions$598,176$627,419$642,631 Contributionsinrelationtotheactuarially determinedcontribution$598,176$627,419$642,631 Contributiondeficiency(excess)$$$ Annualcoveredemployeepayroll$4,559,463$4,822,763$4,617,652 Employercontributionsasapercentage ofcoveredemployeepayroll13.12%13.01%13.92% 1)Thisscheduleispresentedtoillustratetherequirementtoshowinformationfortenyears.However,untila fulltenyeartrendiscompiled,onlyavailableinformationisshown. NOTESTOSCHEDULEOFEMPLOYERCONTRIBUTIONSTOPENSIONPLAN ValuationDate: Notes Actuariallydeterminedcontributionratesarecalculatedasof December31andbecomeeffectiveinJanuary13monthslater. MethodsandAssumptionsUsedtoDetermineContributionRates: ActuarialCostMethodEntryAgeNormal AmortizationMethodLevelPercentageofPayroll,Closed RemainingAmortizationPeriod29years AssetValuationMethod10Yearsmoothedmarket;15%softcorridor Inflation2.5% SalaryIncreases3.50%to10.5%,includinginflation InvestmentRateofReturn6.75% RetirementAge Experiencebasedtableofratesthatarespecifictothesplanof benefits.Lastupdatedforthe2015valuationpursuanttoan experiencestudyoftheperiod20102014 Mortality RP2000CombinedMortalityTablewithBlueCollarAdjustment withmaleratesmultipliedby109%andfemaleratesmultipliedby 103%andprojectedonafullygenerationalbasiswithscaleBB OtherInformation: NotesTherewerenobenefitchangesduringtheyear. 79 Town CouncilPage 204 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas SCHEDULEOFFUNDINGPROGRESS POSTEMPLOYMENTHEALTHCAREBENEFITS YearsEnded: Actuarial AccruedUAALasa ActuarialLiabilityUnfundedAnnualPercentage ActuarialValueof(AAL)AALFundedCoveredofCovered ValuationAssetsEntryAge(AAL)RatioPayrollPayroll Dateba(ba)a/bc\[(ba)/c\] 10/1/2011$$109,475$111,9960%$4,465,2442.51% 10/1/2012$$81,122$111,9960%$3,887,4772.88% 10/1/2014$$90,490$90,4900%$3,867,7852.34% 80 Town CouncilPage 205 of 271Meeting Date: March 27, 2018 COMBININGANDINDIVIDUALFUNDFINANCIAL STATEMENTSANDSCHEDULES Town CouncilPage 206 of 271Meeting Date: March 27, 2018 81 TownofTrophyClub,Texas COMBININGBALANCESHEET NONMAJORGOVERNMENTALFUNDS September30,2017 Court HotelStreetMaintenance OccupancyTax SalesTaxTechnology Assets Cashandcashequivalents$383,525$$17,950 Taxesreceivable,net42,97533,036 Duefromotherfunds111,229 TotalAssets$426,500$144,265$17,950 Liabilities Accountspayable$23,537$5,757$24 Duetootherfunds3,08045,652 TotalLiabilities 26,61751,40924 FundBalances Restrictedfor: Tourism399,883 Publicsafety Streetmaintenance92,856 Crimecontrolandprevention Court17,926 Committedfor: Recreationprograms TotalFundBalances 399,88392,85617,926 TotalLiabilities,DeferredInflowsof Resources,andFundBalances $426,500$144,265$17,950 Seenotestothefinancialstatements Town CouncilPage 207 of 271Meeting Date: March 27, 2018 82 CourtCrimeControlRecreation SecurityandPreventionProgramsGrantTotal $19,893$53,125$7,307$9,886$491,686 32,929108,940 111,229 $19,893$86,054$7,307$9,886$711,855 $$24,681$$$53,999 48,732 24,681102,731 399,883 9,8869,886 92,856 61,37361,373 19,89337,819 7,3077,307 19,89361,3737,3079,886609,124 19,893$86,054$7,307$9,886$711,855 $ Town CouncilPage 208 of 271Meeting Date: March 27, 2018 83 TownofTrophyClub,Texas COMBININGSTATEMENTOFREVENUES,EXPENDITURES, ANDCHANGESINFUNDBALANCES NONMAJORGOVERNMENTALFUNDS FortheYearEndedSeptember30,2017 HotelStreetMaintenanceCourt OccupancyTaxSalesTaxTechnology Revenues Salestaxes$$213,431$ Occupancytax487,489 Chargesforservices Finesandfees3,429 Investmentincome5,40735 Otherrevenue12,733 TotalRevenues 505,629213,4663,429 Expenditures Current: Court4,600 Police Tourism194,130 Recreation Publicworks90,593 Capitaloutlay: Tourism475,979 TotalExpenditures 670,10990,5934,600 Excess(Deficiency)ofRevenuesOver (Under)Expenditures (164,480)122,873(1,171) OtherFinancingSources(Uses) Transfers(out)(25,000) TotalOtherFinancingSources(Uses)(25,000) NetChangeinFundBalances(164,480)97,873(1,171) Beginningfundbalances564,363(5,017)19,097 EndingFundBalances$399,883$92,856$17,926 Seenotestothefinancialstatements Town CouncilPage 209 of 271Meeting Date: March 27, 2018 84 CourtCrimeControlRecreation SecurityandPreventionProgramsGrantTotal $$209,200$$$422,631 487,489 13,71513,715 2,5726,001 1425,584 2,10014,833 2,572209,34213,7152,100950,253 2504,850 200,397200,397 194,130 8,6778,677 90,593 475,979 250200,3978,677974,626 2,3228,9455,0382,100(24,373) (3,000)(149,975)(177,975) (3,000)(149,975)(177,975) (678)(141,030)5,0382,100(202,348) 20,571202,4032,2697,786811,472 $19,893$61,373$7,307$9,886$609,124 Town CouncilPage 210 of 271Meeting Date: March 27, 2018 85 TownofTrophyClub,Texas SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGES INFUNDBALANCEBUDGETANDACTUAL COURTTECHNOLOGY FortheYearEndedSeptember30,2017 Variancewith FinalBudget OriginalCourtPositive BudgetFinalBudgetTechnology(Negative) Revenues Finesandfees$4,000$4,000$3,429$(571) TotalRevenues 4,0004,0003,429(571) Expenditures Municipalcourt8,1338,1334,6003,533 TotalExpenditures 8,1338,1334,6003,533 RevenuesOver(Under) Expenditures(4,133)(4,133)(1,171)2,962 NetChangeinFundBalances$(4,133)$(4,133)(1,171)$2,962 Beginningfundbalances19,097 EndingFundBalances$17,926 NotstoSupplementaryInformation 1.Annualbudgetsareadoptedonabasisconsistentwithgenerallyacceptedaccountingprinciples(GAAP). Town CouncilPage 211 of 271Meeting Date: March 27, 2018 86 TownofTrophyClub,Texas SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGES INFUNDBALANCEBUDGETANDACTUAL COURTSECURITY FortheYearEndedSeptember30,2017 Variancewith FinalBudget OriginalCourtPositive BudgetSecurityFinalBudget(Negative) Revenues Finesandfees$3,000$3,000$2,572$(428) TotalRevenues 3,0003,0002,572(428) Expenditures Municipalcourt2,2942,2942502,044 TotalExpenditures 2,2942,2942502,044 RevenuesOverExpenditures 7067062,3221,616 OtherFinancing(Uses) Transfers(out)(3,000)(3,000)(3,000) TotalOtherFinancing(Uses)(3,000)(3,000)(3,000) NetChangeinFundBalances $(2,294)$(2,294)(678)$1,616 Beginningfundbalances20,571 EndingFundBalances$19,893 NotstoSupplementaryInformation 1.Annualbudgetsareadoptedonabasisconsistentwithgenerallyacceptedaccountingprinciples(GAAP). Town CouncilPage 212 of 271Meeting Date: March 27, 2018 87 TownofTrophyClub,Texas SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGES INFUNDBALANCEBUDGETANDACTUAL STREETMAINTENANCE FortheYearEndedSeptember30,2017 Variancewith FinalBudget OriginalStreetPositive BudgetFinalBudgetMaintenance(Negative) Revenues Taxes$223,754$223,754$213,431$(10,323) Investmentincome3535 TotalRevenues 223,754223,754213,466(10,288) Expenditures Streets176,975176,97590,59386,382 TotalExpenditures 176,975176,97590,59386,382 RevenuesOver(Under) Expenditures 46,77946,779122,87376,094 OtherFinancing(Uses) Transfers(out)(25,000)(25,000)(25,000) TotalOtherFinancing(Uses)(25,000)(25,000)(25,000) NetChangeinFundBalances$21,779$21,77997,873$76,094 Beginningfundbalances(5,017) EndingFundBalances$92,856 NotstoSupplementaryInformation 1.Annualbudgetsareadoptedonabasisconsistentwithgenerallyacceptedaccountingprinciples(GAAP). Town CouncilPage 213 of 271Meeting Date: March 27, 2018 88 TownofTrophyClub,Texas SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGES INFUNDBALANCEBUDGETANDACTUAL HOTELOCCUPANCYTAX FortheYearEndedSeptember30,2017 Variancewith FinalBudget OriginalHotelPositive BudgetFinalBudgetOccupancyTax(Negative) Revenues Taxes$443,400$443,400$487,489$44,089 Investmentincome5005005,4074,907 Miscellaneous5,0005,00012,7337,733 TotalRevenues 448,900448,900505,62956,729 Expenditures Generalgovernment136,406136,406136,406 Tourism120,925120,925194,130(73,205) Capitaloutlay380,000380,000475,979(95,979) TotalExpenditures 637,331637,331670,109(32,778)* RevenuesOverExpenditures(188,431)(188,431)(164,480)23,951 NetChangeinFundBalances$(188,431)$(188,431)(164,480)$23,951 Beginningfundbalances564,363 $399,883 EndingFundBalances NotstoSupplementaryInformation 1.Annualbudgetsareadoptedonabasisconsistentwithgenerallyacceptedaccountingprinciples(GAAP). velofcontrol. *Expendituresexceededappropriationsatthelegalle Town CouncilPage 214 of 271Meeting Date: March 27, 2018 89 TownofTrophyClub,Texas SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGES INFUNDBALANCEBUDGETANDACTUAL CRIMECONTROLANDPREVENTION FortheYearEndedSeptember30,2017 Variancewith FinalBudget OriginalCrimeControlPositive BudgetFinalBudgetandPrevention(Negative) Revenues Taxes$209,849$209,849$209,200$(649) Investmentincome10010014242 TotalRevenues 209,949209,949209,342(607) Expenditures Police201,000201,000200,397603 TotalExpenditures 201,000201,000200,397603 RevenuesOverExpenditures 8,9498,9498,945(4) OtherFinancing(Uses) Transfers(out)(149,975)(149,975)(149,975) TotalOtherFinancing(Uses)(149,975)(149,975)(149,975) NetChangeinFundBalances$(141,026)$(141,026)(141,030)$(4) Beginningfundbalances202,403 $61,373 EndingFundBalances NotstoSupplementaryInformation 1.Annualbudgetsareadoptedonabasisconsistentwithgenerallyacceptedaccountingprinciples(GAAP). Town CouncilPage 215 of 271Meeting Date: March 27, 2018 90 TownofTrophyClub,Texas SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGES INFUNDBALANCEBUDGETANDACTUAL RECREATIONPROGRAMS FortheYearEndedSeptember30,2017 Variancewith FinalBudget OriginalRecreationPositive BudgetFinalBudgetPrograms(Negative) Revenues Chargesforservices$8,000$8,000$13,715$5,715 TotalRevenues 8,0008,00013,7155,715 Expenditures Recreation8,0008,0008,677(677) TotalExpenditures 8,0008,0008,677(677)* RevenuesOverExpenditures 5,0385,038 NetChangeinFundBalances $$5,038$5,038 Beginningfundbalances2,269 EndingFundBalances$7,307 NotstoSupplementaryInformation 1.Annualbudgetsareadoptedonabasisconsistentwithgenerallyacceptedaccountingprinciples(GAAP). *Expendituresexceededappropriationsatthelegallevelofcontrol. Town CouncilPage 216 of 271Meeting Date: March 27, 2018 91 TownofTrophyClub,Texas SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGES INFUNDBALANCEBUDGETANDACTUAL DEBTSERVICEFUND FortheYearEndedSeptember30,2017 Variancewith FinalBudget OriginalDebtPositive BudgetFinalBudgetService(Negative) Revenues Taxes$1,886,194$1,886,194$1,909,067$22,873 Investmentincome2,0002,0007,9405,940 TotalRevenues 1,888,1941,888,1941,917,00728,813 Expenditures DebtService: Principal1,263,0001,263,0001,263,000 Interestandfiscalcharges696,678696,678688,7267,952 Administrativecharges7,5007,5008,728(1,228) TotalExpenditures 1,967,1781,967,1781,960,4546,724 RevenuesOver(Under) Expenditures(78,984)(78,984)(43,447)35,537 OtherFinancingSources(Uses) Transfersin201,862201,862209,3167,454 TotalOtherFinancing Sources(Uses) 201,862201,862209,3167,454 NetChangeinFundBalances$122,878$122,878165,869$42,991 Beginningfundbalances143,174 EndingFundBalances$309,043 NotstoSupplementaryInformation 1.Annualbudgetsareadoptedonabasisconsistentwithgenerallyacceptedaccountingprinciples(GAAP). Town CouncilPage 217 of 271Meeting Date: March 27, 2018 92 TownofTrophyClub,Texas SCHEDULEOFREVENUES,EXPENDITURES,ANDCHANGES INFUNDBALANCEBUDGETANDACTUAL CAPITALPROJECTSFUND FortheYearEndedSeptember30,2017 Variancewith FinalBudget OriginalCapitalPositive BudgetFinalBudgetProjects(Negative) Revenues Investmentincome$10,000$10,000$83,988$73,988 TotalRevenues 10,00010,00083,98873,988 Expenditures Generalgovernment143,803143,803133,8799,924 Parks15,366(15,366) Bondissuancecost65,86365,86365,863 Capitaloutlay9,857,9009,857,9007,635,0982,222,802 TotalExpenditures 10,067,56610,067,5667,850,2062,217,360 RevenuesOverExpenditures(10,057,566)(10,057,566)(7,766,218)2,291,348 OtherFinancingSources(Uses) Bondissuance6,680,8206,680,8204,445,000(2,235,820) Premiumonbondsissued128,317128,317128,317 Transferin720,934720,934 Transfer(out)(7,454)(7,454) TotalOtherFinancing Sources(Uses)6,809,1376,809,1375,286,797(1,522,340) NetChangeinFundBalances$(3,248,429)$(3,248,429)(2,479,421)$769,008 Beginningfundbalances8,764,936 EndingFundBalances $6,285,515 NotstoSupplementaryInformation 1.Annualbudgetsareadoptedonabasisconsistentwithgenerallyacceptedaccountingprinciples(GAAP). Town CouncilPage 218 of 271Meeting Date: March 27, 2018 93 94 Town CouncilPage 219 of 271Meeting Date: March 27, 2018 STATISTICALSECTION ThispartoftheTownofTrophyClubscomprehensiveannualfinancialreportpresentsdetailed informationasacontextforunderstandingwhattheinformationinthefinancialstatements,note disclosures,andrequiredsupplementaryinformationsaysaboutthegovernmentsoverallfinancial health. Contents Page 96 FinancialTrends 3®«¹«¹©®«ª»²«¹©µ´º§¯´º¸«´ª¯´¬µ¸³§º¯µ´ºµ®«²¶º®«¸«§ª«¸»´ª«¸¹º§´ª®µ½º®«µ¼«¸´³«´º¹¬¯´§´©¯§²¶«¸¬µ¸³§´©« §´ª½«²²¨«¯´®§¼«©®§´«ªµ¼«¸º¯³«Ȍ 109 RevenueCapacity 3®«¹«¹©®«ª»²«¹©µ´º§¯´¯´¬µ¸³§º¯µ´ºµ®«²¶º®«¸«§ª«¸§¹¹«¹¹º®«µ¼«¸´³«´º¹³µ¹º¹¯´¯¬¯©§´º²µ©§²¸«¼«´»«¹µ»¸©«ȍ º®«¶¸µ¶«¸º¿º§¾Ȍ 116 DebtCapacity 3®«¹«¹©®«ª»²«¹¶¸«¹«´º¯´¬µ¸³§º¯µ´ºµ®«²¶º®«¸«§ª«¸§¹¹«¹¹º®«§¬¬µ¸ª§¨¯²¯º¿µ¬º®«µ¼«¸´³«´º¹©»¸¸«´º²«¼«²¹µ¬ µ»º¹º§´ª¯´ª«¨º§´ªº®«µ¼«¸´³«´º¹§¨¯²¯º¿ºµ¯¹¹»«§ªª¯º¯µ´§²ª«¨º¯´º®«¬»º»¸«Ȍ 121 DemographicandEconomicInformation 3®«¹«¹©®«ª»²«¹µ¬¬«¸ª«³µ¸§¶®¯©§´ª«©µ´µ³¯©¯´ª¯©§ºµ¸¹ºµ®«²¶º®«¸«§ª«¸»´ª«¸¹º§´ªº®««´¼¯¸µ´³«´º½¯º®¯´ ½®¯©®º®«µ¼«¸´³«´º¹¬¯´§´©¯§²§©º¯¼¯º¯«¹º§±«¶²§©«Ȍ 124 OperatingInformation 3®«¹«¹©®«ª»²«¹©µ´º§¯´¹«¸¼¯©«§´ª¯´¬¸§¹º¸»©º»¸«ª§º§ºµ®«²¶º®«¸«§ª«¸»´ª«¸¹º§´ª®µ½º®«¯´¬µ¸³§º¯µ´¯´º®« µ¼«¸´³«´º¹¬¯´§´©¯§²¸«¶µ¸º¸«²§º«¹ºµº®«¹«¸¼¯©«¹º®«µ¼«¸´³«´º¶¸µ¼¯ª«¹§´ªº®«§©º¯¼¯º¯«¹¯º¶«¸¬µ¸³¹Ȍ Sources:Unlessotherwisenoted,theinformationintheseschedulesisderivedfromthe comprehensiveannualfinancialreportsfortherelevantyear. 95 Town CouncilPage 220 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas NETPOSITIONBYCOMPONENT LastTenFiscalYears(Unaudited) (accrualbasisofaccounting) 2008200920102011 Governmentalactivities Netinvestmentincapitalassets$24,467,178$33,443,249$36,491,021$47,668,302 Restricted130,70940,71639,00357,471 Unrestricted11,115,2776,197,0414,569,3442,689,482 Totalgovernmentalactivitiesnetposition$35,713,164$39,681,006$41,099,368$50,415,255 Businesstypeactivities Netinvestmentincapitalassets$$$$ Unrestricted12,541 12,541 Totalbusinesstypeactivitiesnetposition Primarygovernment Netinvestmentincapitalassets$24,467,178$33,443,249$36,491,021$47,668,302 Restricted130,70940,71639,00357,471 Unrestricted11,115,2776,197,0414,569,3442,702,023 Totalprimarygovernmentalnetposition$35,713,164$39,681,006$41,099,368$50,427,796 Source:Townauditedfinancialrecords Notes:TheTownimplementedtheGASB34modelofreportingfiscalyearendingSeptember 30,2004. TheTowndidnothavebusinesstypeactivitiespriortofiscalyear2011. TheTownimplementedGASBStatementNo.65infiscalyear2014.Theamountsforallfiscal yearspresentedhavebeenrestatedfortheeffectsofthisstandard. TheTownimplementedGASBNo.68infiscalyear2015.Theamountsforallpriorfiscal yearshavenotbeenrestatedfortheeffectsofthisstandard. 96 Town CouncilPage 221 of 271Meeting Date: March 27, 2018 201220132014201520162017 $50,050,855$54,425,735$53,586,441$27,620,857$26,940,643$27,125,337 1,191,411315,480564,4724,035,4284,433,6494,676,837 2,158,5582,896,6743,119,5312,279,1941,995,9603,193,856 $53,400,824$57,637,889$57,270,444$33,935,479$33,370,252$34,996,030 $$52,848$560,931$513,930$680,146$776,097 46,866230,592(4,845)163,047171,755350,752 $46,866$283,440$556,086$676,977$851,901$1,126,849 $50,050,855$54,478,583$54,147,372$28,134,787$27,620,789$27,901,434 1,191,411315,480564,4724,035,4284,433,6494,676,837 2,205,4243,127,2663,114,6862,442,2412,167,7153,544,608 $53,447,690$57,921,329$57,826,530$34,612,456$34,222,153$36,122,879 97 Town CouncilPage 222 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas CHANGESINNETPOSITION LastTenFiscalYears(Unaudited) (accrualbasisofaccounting) 2008200920102011 Expenses Governmentalactivities: Generalgovernment$1,475,709$1,421,942$1,717,961$2,807,237 PIDactivities Publicsafety3,041,7532,013,8222,211,1082,275,778 Streetsandinfrastructure526,6211,326,9861,335,6741,372,501 Communitydevelopment415,552298,287353,894345,804 Waterandsewer617,001 Stormdrainage Parksandrecreation1,930,1051,224,5211,596,6191,844,573 Interestonlongtermdebt2,532,457391,346391,593558,473 lgovernmentalactivitiesexpenses 9,922,1976,676,9047,606,8499,821,367 Tota Businesstypeactivities: TrophyClubPark98,935 TownStormDrainage156,461 Totalbusinesstypeactivitiesexpenses 255,396 Totalprimarygovernmentexpenses 9,922,1976,676,9047,606,84910,076,763 ProgramRevenues Governmentalactivities: Chargesforservices CommunityDevelopment713,920792,065 Waterandsewer305,580612,722 Other1,284,3241,551,633688,554669,827 Operatinggrantsandcontributions977,77455,801385,429340,748 Capitalgrantsandcontributions27,776,5103,736,920323,82210,627,098 Totalgovernmentalactivitiesprogramrevenues 30,038,6085,344,3542,417,30513,042,460 Businesstypeactivities: Chargesforservices253,034 Operatinggrantsandcontributions Totalbusinesstypeactivitiesprogramrevenues 253,034 Totalprimarygovernmentprogramrevenues $30,038,608$5,344,354$2,417,305$13,295,494 98 Town CouncilPage 223 of 271Meeting Date: March 27, 2018 201220132014201520162017 $1,984,137$1,902,621$2,113,664$1,955,949$2,728,642$2,483,298 2,736,0002,122,90148,520 2,392,7982,898,7373,125,5772,306,6093,540,7034,562,535 1,829,7992,234,1401,764,3961,716,5311,878,1191,728,809 485,614599,872620,209436,090640,404738,659 92261,106311,677319,054319,054 227,067231,370234,339234,287 1,564,6602,037,5902,555,8442,253,9822,652,3842,761,053 498,569489,337412,561469,923496,0192,365,059 8,755,66910,650,47011,135,29812,428,47714,612,51314,687,933 130,18598,718134,625123,445109,325116,477 96,488121,269103,001205,331174,499120,295 226,673219,987237,626328,776283,824236,772 8,982,34210,870,45711,372,92412,757,25314,896,33714,924,705 1,128,234968,285895,508702,578605,558 2,040 854,349793,205783,359752,102607,4531,576,453 342,894952,648423,960550,495141,071581,633 2,682,3024,793,132761,1961,254,997 5,009,8197,507,2702,864,0233,260,1721,354,0822,158,086 325,380506,205550,617484,874466,934596,520 61,106 325,380506,205550,617484,874528,040596,520 $5,335,199$8,013,475$3,414,640$3,745,046$1,882,122$2,754,606 99 Town CouncilPage 224 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas CHANGESINNETPOSITION LastTenFiscalYears(Unaudited) (accrualbasisofaccounting) 2008200920102011 Net(Expenses)Revenue Governmentalactivities20,116,411$$(1,332,550)$(5,189,544)$3,221,093 Businesstypeactivities(2,362) Totalprimarygovernmentnetexpenses$20,116,411$(1,332,550)$(5,189,544)$3,218,731 GeneralRevenues andOtherChangesinNetPosition Governmentalactivities: Taxes: Propertytaxes3,217,0513,639,1923,889,1574,480,999 Salesandmixedbeveragetaxes608,218588,362674,131631,561 Othertaxes515,205563,340537,644648,400 Intergovernmentalrevenue254,572260,507409,454 Investmentincome465,06485,80017,63415,162 Miscellaneousrevenues629,225163,192126,949333,497 Transfers(4,422,288)75,819 Totalgovernmentalactivities 1,267,0475,300,3935,654,9696,185,438 Businesstypeactivities: Investmentincome78 Specialitems Transfers(75,819) Totalbusinesstypeactivities(75,741) Totalprimarygovernment$1,267,047$5,300,393$5,654,969$6,109,697 ChangeinNetPosition Governmentalactivities$21,383,458$3,967,843$465,425$9,406,531 Businesstypeactivities(78,103) Totalprimarygovernment$21,383,458$3,967,843$465,425$9,328,428 Source:Townauditedfinancialrecords Notes:TheTownimplementedtheGASB34modelofreportingfiscalyearendingSeptember30,2004. TheTowndidnothavebusinesstypeactivitiespriortofiscalyear2011. TheTownimplementedGASBStatementNo.65infiscalyear2014.Theamountsforallfiscalyearspresentedhavebeen restatedfortheeffectsofthisstandard. TheTownimplementedGASBNo.68infiscalyear2015.Theamountsforallpriorfiscalyearshavenotbeenrestatedfor theeffectsofthisstandard. 100 Town CouncilPage 225 of 271Meeting Date: March 27, 2018 201220132014201520162017 $(3,745,850)$(3,143,200)$(8,271,275)$(9,168,305)$(13,258,431)$(12,529,847) 98,707286,218312,991156,098244,216359,748 $(3,647,143)$(2,856,982)$(7,958,284)$(9,012,207)$(13,014,215)$(12,170,099) 4,897,6155,334,1405,955,3989,364,7059,701,08010,331,588 754,105781,054965,9691,104,2981,217,6931,306,243 706,065828,3381,020,5541,027,4071,255,9951,376,352 7,9837,1934,97311,33165,709146,015 301,269379,896185,922100,202382,521908,540 64,38249,64428,60735,35070,20686,887 6,731,4197,380,2658,161,42311,643,29312,693,20414,155,625 251439142,087 26,001 (64,382)(49,644)(28,607)(35,350)(70,206)(86,887) (64,382)(49,644)(2,581)(35,207)(69,292)(84,800) $6,667,037$7,330,621$8,158,842$11,608,086$12,623,912$14,070,825 $109,852)$2,474,988$(565,227)$1,625,778 $2,985,569$4,237,065( 34,325236,574310,410120,891174,924274,948 $3,019,894$4,473,639$200,558$2,595,879$(390,303)$1,900,726 101 Town CouncilPage 226 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas FUNDBALANCESOFGOVERNMENTALFUNDS LastTenFiscalYears(Unaudited) (modifiedaccrualbasisofaccounting) 2008200920102011 GeneralFund Nonspendableforprepaids$$$$2,620 Assignedforcapitalexpenditures228,138 CommttedforPolice Unassigned2,412,034 Reserved97,35556,96857,486 Unreserved1,830,2332,010,8692,056,334 Totalgeneralfund$1,927,588$2,067,837$2,113,820$2,642,792 AllOtherGovernmentalFunds Restrictedfor: DebtService$$$$85,388 CapitalProjects 1,599,988 PIDNo.1 Tourism1,890 StreetMaintenance34,750 Townanniversary2,114 WaterServices12,788 Court PublicSafety Committedfor: Recreationprograms CommttedforRecreationPrograms Unassigned(26,477) Reservedfor: Debtservice152,25363,30583,067 Prepaiditems1,567 Encumbrances48,000 Capitalprojectsfunds3,750,2066,709,402 Unreserved,reportedin: Specialrevenuefunds18,6078,231151,970 Capitalprojectsfunds10,193,492 Totalallothergovernmentalfunds$10,364,352$3,821,742$6,994,006$1,710,441 Source:Townauditedfinancialrecords (1)TheTownimplementedtheGASB54duringfiscalyearendedSeptember30,2011. 102 Town CouncilPage 227 of 271Meeting Date: March 27, 2018 201220132014201520162017 $796$796$796$1,816$54,397$91,278 228,138228,138228,138228,138 200,000189,475183,858 2,902,1682,398,3302,816,0873,261,2353,950,2904,087,678 $3,131,102$2,627,264$3,045,021$3,691,189$4,194,162$4,362,814 $94,267$119,722$118,092$118,542$143,174$309,043 996,4252,065,7594,505,2731,694,5468,764,9366,285,515 4,229,0683,869,4253,765,977 1,32187,225283,481475,748564,363399,883 75,99946,70039,91565,30692,856 2,1142,1142,1143,497 49,96260,92746,25343,42239,66837,819 23,00793,746134,265210,18971,259 2,8123,3952,269 7,307 (257,350)(11,517)(6,333)(6,327)(5,017) $962,738$2,393,937$5,085,353$6,761,462$13,589,007$10,969,659 103 Town CouncilPage 228 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas CHANGESINFUNDBALANCESOFGOVERNMENTALFUNDS LastTenFiscalYears(Unaudited) (modifiedaccrualbasisofaccounting) 2008200920102011 Revenues Taxes Advaloremtaxes$3,219,061$3,623,124$3,890,927$4,457,829 Salesandmixedbeveragetaxes608,218588,362674,131631,561 Franchisetaxes481,459546,271519,959608,806 Occupancy25,70517,06917,68522,644 Licenses,permits&fees376,628631,895719,333798,520 Intergovernmental1,232,346235,715237,756375,749 Chargesforservices776,088794,185868,5711,140,556 Fines&Fees106,092140,553120,151167,461 Contributions27,415,0063,736,920709,251265,426 InvestmentIncome465,06485,80017,63415,162 Grantrevenue361,50450,191171,698318,954 Miscellaneous659,254178,594126,949335,796 Totalrevenues 35,726,42510,628,6798,074,0459,138,464 Expenditures Current: Generalgovernment1,458,4741,523,6041,722,2291,763,048 PIDactivities Publicsafety3,082,7971,944,6432,169,4772,237,263 Highways&streets593,444791,304568,619811,854 Communitydevelopment317,973265,162344,278189,425 Waterandsewer617,001 Culture&recreation1,296,7521,230,1931,393,7511,523,133 DebtService: Principal447,000515,000540,000803,000 Interest460,741389,921371,721551,955 Othercharges2,078,49682,24574,324 CapitalOutlay14,078,55710,394,5233,223,4785,390,630 Totalexpenditures 23,814,23417,054,35010,415,79813,961,633 Excessofrevenues over(under)expenditures 11,912,191(6,425,671)(2,341,753)(4,823,169) 104 Town CouncilPage 229 of 271Meeting Date: March 27, 2018 201220132014201520162017 $4,916,886$5,330,778$5,908,764$9,387,548$9,710,760$10,261,991 754,105781,054965,9691,104,2981,217,6941,306,243 693,722718,952772,621811,052953,622888,863 20,543108,170235,796264,708302,374487,489 1,128,234968,285904,251697,378598,586333,780 342,894888,896133,004326,19526,237581,633 670,186592,146611,781293,011310,735820,530 157,143171,579126,111580,648362,409355,504 322,5361,472 7,9837,1934,97411,33065,708146,015 1,400,252490,85061,383147,6917,942 82,057388,894485,380100,202407,418158,540 10,496,54110,448,26910,210,03413,724,06113,963,48515,340,588 1,968,2871,844,9391,947,6502,273,4472,349,1202,191,140 314,34481,79344,984 2,408,1032,905,9232,918,4842,896,6323,187,0644,117,992 2,017,5481,067,962517,964516,035566,927179,448 481,473576,306587,760479,477576,508582,259 92 1,659,6561,491,4961,853,8111,799,2041,892,0651,991,571 885,0002,294,000998,0001,438,0002,153,9741,567,004 475,266456,417398,8722,504,2352,055,6942,555,580 21,20029,36775,10042,7361,340,78674,591 1,403,691237,936885,4363,466,3073,395,5099,146,919 11,320,31610,904,34610,183,07715,730,41717,599,44022,451,488 (823,775)(456,077)26,957(2,006,356)(3,635,955)(7,110,900) 105 Town CouncilPage 230 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas CHANGESINFUNDBALANCESOFGOVERNMENTALFUNDS LastTenFiscalYears(Unaudited) (modifiedaccrualbasisofaccounting) 2008200920102011 OTHERFINANCINGSOURCES(USES) Proceedsfromcapitalleaseobligation256,83623,310 Proceedsfromcontractualobligations5,560,000 Proceedsfrombonds2,790,000 Premiumonbonds118,904 Paymenttorefundedbondescrowagent(2,825,503) Transferfromotherfunds123,280104,700276,317185,835 Transfertootherfunds(4,545,568)(104,700)(276,317)(110,016) Totalotherfinancingsources(uses)(4,165,452)23,3105,560,000159,220 NETCHANGEINFUNDBALANCES$7,746,739$(6,402,361)$3,218,247$(4,663,949) Debtserviceasapercentageofnoncapital expenditures9.32%13.59%12.68%15.81% Source:Townauditedfinancialrecords 106 Town CouncilPage 231 of 271Meeting Date: March 27, 2018 201220132014201520162017 2,500,0004,210,000 500,0001,300,000600,0002,030,00031,399,9794,445,000 33,79450,3295,020,788128,317 (2,026,710)(29,734,500) 191,878876,55355,74163,350493,947993,250 (127,496)(826,909)(27,134)(28,000)(423,741)(906,363) 564,3821,383,4383,178,93638,64010,966,4734,660,204 $(259,393)$927,361$3,205,893$(1,967,716)$7,330,518$(2,450,696) 13.72%25.79%15.02%32.14%29.64%30.99% 107 Town CouncilPage 232 of 271Meeting Date: March 27, 2018 108 Town CouncilPage 233 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas SSESSEDVALUEANDESTIMATEDACTUALVALUEOFTAXABLEPROPERT AY LastTenFiscalYears(Unaudited) EstimatedMarketValueLess:TotalTaxableTotalDirect FiscalRealNonRealTaxExemptAssessedTax YeaPropertyPropertyPropertyValueRate r 2008$728,292,523$31,439,675$30,732,229$728,999,969$0.43051 2009*802,085,46430,781,32243,426,286789,440,5000.45551 2010861,983,99328,133,83449,316,322840,801,5050.47000 2011901,333,89324,792,61652,794,045873,332,4640.51500 2012971,822,34723,862,33854,212,507941,472,1780.53000 20131,068,605,12724,460,71959,911,2041,033,154,6420.51854 20141,248,215,26525,845,17860,160,7461,213,899,6970.49930 20151,426,754,51720,304,25964,382,4121,382,676,3640.49000 20161,618,577,88128,301,91668,622,8141,578,256,9830.48400 20171,816,191,85729,805,97073,301,4741,772,696,3530.47300 rce:Denton&TarrantCountyCentralAppraisalDistrictCertifiedRoll Sou Note:TotalTaxableAssessedValueisnotadjustedfortaxceilings. *TarrantCountyinlcudedbeginninginFY2009(Taxyear2008) 109 Town CouncilPage 234 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas DIRECTANDOVERLAPPINGPROPERTYTAXRATES LastTenFiscalYears(Unaudited) TownofTrophyClubOverlappingRates Operating FiscalDebtServiceTotalTownNorthwestTrophyClubTrophyClubDenton YeaMillageMillageMillageISDMUD#1MUD#2County r 20080.3510400.0794700.4305101.3350500.2300000.2792300.235890 20090.3743100.0812000.4555101.3350000.2250000.2642300.235770 20100.3883800.0816200.4700001.3550000.2050000.2050000.249800 20110.3972200.1177800.5150001.3750000.1950000.273900 20120.4150130.1149870.5300001.3750000.1750000.277357 20130.4035430.1150000.5185431.3750000.1333900.282867 20140.3843000.1150000.4993001.4525000.1333900.284914 20150.3800000.1100000.4900001.4525000.1333900.272200 20160.3740000.1100000.4840001.4525000.1311400.262000 20170.3630000.1100000.4730001.4525000.1272200.248409 Source:Denton&TarrantCountyAppraisalDistricts (1)TheTownimplementedtheGASB34modelofreportingfiscalyearendingSeptember30,2004. 110 Town CouncilPage 235 of 271Meeting Date: March 27, 2018 OverlappingRatesTotal TarrantTarrantTotalTotalTotalDirect& TrophyClubTarrantCountyCountyMUD#1MUD#2PID#1ESDOverlapping PID#1ESDCountyCollegeHospitalMillageMillageMillageRates 2.310920$2.2806802.0809202.510680 0.2640000.1379600.2278972.734440$2.9203672.1074803.145367 0.1091400.2640000.1376700.2278972.872230$3.0185072.2655603.223507 0.1092500.2640000.1376400.2278972.987570N/A2.3909303.097687 0.1092500.2640000.1489700.2278972.994564N/A2.4065943.107474 0.1040000.2640000.1495000.2278972.942300N/A2.3954103.055197 0.0873800.2640000.1495000.2278972.985984N/A2.4390943.098881 0.0772700.2640000.1495000.2278972.948860N/A2.4019703.066757 0.0722200.2640000.1495000.2278972.925360N/A2.3807203.043257 0.0744500.2540000.1447300.2278972.884309N/A2.3583593.002206 111 Town CouncilPage 236 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas PRINCIPALPROPERTYTAXPAYERS CurrentFiscalYearandNineYearsAgo(Unaudited) 2017 Percentageof TaxableTotalTaxable AssessedAssessed Value TaxpayerValueRank (1) TrophyClub2850MedicalProperties/CenterLP11.49% $26,419,420 TrophyClub12LLC20.99% 17,500,000 ArmoreTrophyClubLLC30.64% 11,400,000 TrophyLodgingLTD40.64% 11,328,119 HydraHotelsLLC50.48% 8,477,683 TrophyClubEquitiesLLC60.47% 8,393,000 CWTrophyLLC8,382,79570.47% ShriSiddhiVinayakLLC80.43% 7,589,328 FirstTexasHomesINC90.37% 6,504,985 4663OkeechobeeBlvd.andPalmBeachHoldings100.36% 6,314,827 CNLRetirementCRSITrophyClubTXLPn/an/a RegencyCentersLPn/an/a 831TrophyLPn/an/a TrophyClubMOBPartnersLPn/an/a ClubcorpColfTEXLPP/Sn/an/a TrophyClubMedicalCentern/an/a EncanaOil&Gas(USA)n/an/a StandardPacificofTexasLPn/an/a TCPlantationsLTDP/Sn/an/a 4663OkeechobeeBLVD&PalmBeachHoldings(2002)n/an/a Totals $112,310,1576.33% Source:DentonCountyAppraisalDistrictandTarrantCountyApprisalDistrict (1)Totaltaxablevalueincludingrealandpersonalpropertyfortaxyear2016(fiscalyear2017)is$1,772,696,353 (2)Totaltaxablevalueincludingrealandpersonalpropertyfortaxyear2007(fiscalyear2008)is$728,999,969 112 Town CouncilPage 237 of 271Meeting Date: March 27, 2018 2008 Percentageof TaxableTotalTaxable AssessedAssessed Value ValueRank (2) n/an/a n/an/a n/an/a n/an/a n/an/a n/an/a n/an/a n/an/a n/an/a n/an/a 11.75% $12,747,920 9,835,12621.35% 9,269,78431.27% 8,291,95741.14% 8,018,77951.10% 6,652,88060.91% 6,566,77070.90% 5,228,39780.72% 4,645,93090.64% 3,946,859100.54% $75,204,40210.31% 113 Town CouncilPage 238 of 271Meeting Date: March 27, 2018 114 Town CouncilPage 239 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas PROPERTYTAXLEVIESANDCOLLECTIONS LastTenFiscalYears(Unaudited) Collectedwithinthe TotalTaxCollectionsin FiscalYearoftheLevyTotalCollectionstoDate foSubseuent FiscalLev yrq eofleveoflev YeaFiscalYeaAmountPercentaYearsAmountPercenta rrgygy 20083,650,949$$3,621,37699.19%28,524$$3,649,90199.97% 20093,563,2023,525,24898.93%36,7223,561,97099.97% 20103,864,0143,836,56899.29%25,3943,861,96299.95% 20114,446,9604,414,69999.27%25,7234,440,42299.85% 20124,858,1364,838,09299.59%13,7134,851,80599.87% 20135,259,7195,244,69999.71%7,7425,252,44199.86% 20145,904,5915,869,97699.41%25,6765,895,65299.85% 20156,665,4336,642,55899.66%11,2426,653,79999.83% 20167,477,3947,456,54299.72%12,0207,468,56299.88% 20178,188,6168,153,91599.58%8,153,91599.58% Source:DentonCountyTaxAssessorCollector 115 Town CouncilPage 240 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas RATIOSOFOUTSTANDINGDEBTBYTYPE LastTenFiscalYears(Unaudited) GovernmentalActivities GeneralCertificatesSpecial FiscalObligationofAssessmentCapital YearBondsObligationBondsPremiumLeases 2008$7,755,000$922,000$$$ 20097,310,000852,000 201012,400,000782,00092,240 201111,833,750709,00030,570 201211,505,149634,000 20139,464,0761,698,419 20149,085,5674,212,132 20158,344,6954,029,431 201612,375,0007,961,00025,710,4794,916,763 201711,450,00012,068,00025,406,4754,754,458 (1)PersonalIncomeandPopulationfoundonTable15ofthestatisticalsection 116 Town CouncilPage 241 of 271Meeting Date: March 27, 2018 BusinessTypeActivities CertificatesTotalPercentage ofPrimaryofPersonalPer ObligationPremiumIncome Capita Government (2) $$8,677,0003.40%$1,152 8,162,0003.28%1,074 13,274,2404.92%1,618 12,573,3203.69%1,531 12,139,1493.03%1,348 1,743,45612,905,9512.86%1,199 1,599,03814,896,7373.07%1,293 1,454,61913,828,7452.61%1,149 1,130,00030,20052,123,4429.32%4,188 3,615,00025,77957,319,7129.68%4,426 117 Town CouncilPage 242 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas RATIOOFGENERALBONDEDDEBTOUTSTANDING LastTenFiscalYears(Unaudited) Percentageof ActualTaxable GeneralSpecial Valueof ObligationCertificatesofAssessment ab FiscalYearPerCapita BondsObligationBondsProperty 2008$7,755,000$922,000$1.19%$1,152 20097,310,000852,0001.03%1,074 201012,400,000782,0001.57%1,607 201111,833,750709,0001.44%1,528 201211,505,149634,0001.29%1,348 20139,464,0761,698,4191.08%1,037 20149,085,5674,212,1321.10%1,154 20158,344,6954,029,4310.89%1,028 201612,375,0007,961,00025,710,4791.29%1,634 201711,450,00012,068,00025,406,4751.33%1,890 a Propertyvaluesarefromtable5. b Populationsarefromtable12. 118 Town CouncilPage 243 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas DIRECTANDOVERLAPPINGGOVERNMENTALACTIVITIESDEBT AsofSeptember30,2017(Unaudited) Estimated EstimatedShareof DebtPrincipalPercentageOverlapping GovernmentalUnitOutstandingApplicable Debt Debtrepaidwithpropertytaxes: DentonCounty $580,525,0002.11%$12,269,105 NorthwestIndependentSchoolDistrict 720,832,0285.36%38,616,555 TarrantCounty 318,245,0000.06%187,011 TarrantCountyHospitalDistrict 39,500,0000.06%23,212 22,550,000138,199 0.61% TrophyClubMUD#1 Subtotal,overlappingdebt $1,681,652,028$51,234,082 53,678,93353,678,933 100.00% TownofTrophyClub,directdebt $104,913,015 TotalDirectandOverlappingDebtPrincipal1,735,330,961$ Note:Overlappinggovernmentsarethosethatcoincide,atleastinpart,withthegeographicboundariesoftheTown. Thisscheduleestimatestheportionoftheoutstandingdebtofthoseoverlappinggovernmentsthatisbornebythe vernments residentsandbusinessesoftheTownofTrophyClub.Thisprocessrecognizesthat,whenconsideringthego abilitytoissueandrepaylongtermdebt,theentiredebtburdenbornebytheresidentsandbusinessesshouldbetaken intoaccount.However,thisdoesnotimplythateverytaxpayerisaresident,andtherforeresponsibleforrepayingthe debt,ofeachoverlappinggovernment. Source:MostrecentTexasMunicipalReports(TMR)publishedbytheMunicipalAdvisoryCouncilofTexas. 119 Town CouncilPage 244 of 271Meeting Date: March 27, 2018 120 Town CouncilPage 245 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas DEMOGRAPHICANDECONOMICSTATISTICS LastTenFiscalYears Median EstimatedTotalHousehold TotalPersonal Unemployment aab c YearPopulationHouseholdsIncomeIncome Rate 20087,5312,289$92,492$211,714,188 4.60 20097,6002,76392,492255,555,396 7.41 20108,2042,93092,492271,001,560 7.59 20118,2103,179107,150340,629,850 7.09 20129,0053,379118,595400,732,505 6.10 201310,7603,680122,539450,943,520 5.65 201411,5253,891124,593484,791,363 4.72 201512,0404,153127,391529,054,823 3.88 201612,4464,342128,750559,032,500 3.66 201712,9504,435133,457591,881,795 3.38 Sources:aEstimatedpopulationusingresidentialwaterconnections bUnitedStatesCensusBureau Federal Bank of St. Louis Economic Research; Denton and Tarrent Counties' data averaged for year 2008 - 2016; no c available data for Tarrant County 2017. 121 Town CouncilPage 246 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas PRINCIPALEMPLOYERS CurrentYearandFiveYearsAgo(1) 2017 Percentageof TotalTown EmployerEmployeesEmployment NorthwestIndependentSchoolDistrict47223.60% BaylorMedicalCenteratTrophyClub21511.00% TrophyClubCountryClub22010.75% 4 TownofTrophyClub 1989.90% TomThumb753.75% BreadWinnersCafe723.60% CristinasMexicanRestaurant552.75% FellowshipUnitedMethodistChurch432.15% PremierAcademyTrophyClub391.95% TrophyLakeAcademy301.50% Total 1,41970.95% (1)Employmentdataisnotavailablefor2008. (2)StaffestimatedtotalTownemploymentof1,500forfiscalyear2017 (3)StaffestimatedtotalTownemploymentof1000forfiscalyear2012 (4)IncludesFullTime,PartTime,andSeasonal 122 Town CouncilPage 247 of 271Meeting Date: March 27, 2018 2012 Percentageof TotalTown EmployerEmployeesEmployment NorthwestIndependentSchoolDistrict34132.47% BaylorMedicalCenteratTrophyClub12511.90% TrophyClubCountryClub15014.28% TomThumb908.57% TownofTrophyClub&TrophyClubMUD#1938.85% CristinasMexicanRestaurant454.28% FellowshipUnitedMethodistChurch393.71% ChurchatTrophyLake302.86% Walgreens232.19% BankofAmerica111.05% 94790.16% 123 Town CouncilPage 248 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas FULLTIMETOWNGOVERNMENTEMPLOYEESBYFUNCTION LastTenFiscalYears(Unaudited) FiscalYear Function200820092010201120122013 GeneralGovernmentand Adminstration 9910121312 PublicSafety292222222328 Streets565555 ParksandRecreation101111111616 CommunityDevelopment433356 Total575050536267 Source:Departmentalrecords 124 Town CouncilPage 249 of 271Meeting Date: March 27, 2018 FiscalYear 2014201520162017 14131413 31323334 5444 17171716 7666 74727374 125 Town CouncilPage 250 of 271Meeting Date: March 27, 2018 TownofTrophyClub,Texas OPERATINGINDICATORSBYFUNCTION LastTenFiscalYears(Unaudited) Function2008200920102011 PublicSafety Police Numberofstations1111 Numberofpolicepersonnel15151617 Numberofarrests152121125128 Numberoftrafficstops2,9393,6082,6962,821 Fire Numberofstations1111 Numberoffirepersonnel14141414 Numberofcallsanswered597689651741 Developmental Milesofstreets34363942 Cultural/RecreationalChanges Parks8887 Parkacreage1,0371,0371,0371,037 Source:Departmentalrecords 126 Town CouncilPage 251 of 271Meeting Date: March 27, 2018 201220132014201520162017 111111 151823252526 10210182125145148 2,6022,4432,0042,9123,6352,922 111111 141415151617 845945907868898868 434343434343 666666 1,0391,0391,0391,0391,0391,039 127 Town CouncilPage 252 of 271Meeting Date: March 27, 2018 Town of Trophy Club 1 Trophy Wood Drive Trophy Club, Texas 76262 Legislation Details (With Text) File #:2018-130-T Version:1 Name: Type:Agenda Item Status:Regular Session File created:3/7/2018 In control:Town Council On agenda:3/27/2018 Final action: Title:Receive an update from Town Staff and take appropriate action regarding the proposed Loop Road (T. Class). Attachments:Staff Report - Loop Road.pdf Loop Road Presentation.pdf DateVer.Action ByActionResult Agenda Item No. 12: Receive an update from Town Staff and take appropriate action regarding the proposed Loop Road (T. Class). Town CouncilPage 253 of 271Meeting Date: March 27, 2018 To: Mayor and Town Council From: Wade Carroll, Fire Chief CC: Thomas M. Class Sr., Town Manager Holly Fimbres, Town Secretary/RMO Re: Proposed Loop Road Town Council Meeting, March 27, 2018 Agenda Item: Receive an update from Town Staff and take appropriate action regarding the proposed Loop Road (T. Class). Explanation: Staff is seeking direction on potentially filing an appeal to the 2014 “Loop Road” denial letter received from the US Corps of Engineers, which was in response to the Town of Trophy Club’s previous request for an easement to construct the roadway. As discussed previously, the Corp of Engineers’ 2001 Lake Grapevine Masterplan was proposed in order to minimize the number of easements granted once Environmentally Sensitive Areas (ESAs) were established. The Corp later placed the following restrictions on easements where ESAs were established: 1. Requests would only be granted when no practical alternative exists. 2. Requests must have the least identifiable environmental and visual impact. 3. Requests must consider routing the easement to adjacent land outside the ESA when possible. Factors the Corps uses to determine a “demonstrated need” for easements in ESA’s are: 1. Whether there is adjacent private land outside the ESA that can be utilized for the easement (Trophy Club Country Club). If yes, chances are virtually none for approval according to Corps representatives. 2. Whether the proposed roadway qualifies as a regional arterial (traverses multiple jurisdictions). If no, chances are virtually none for approval according to Corps representatives. 3. Whether there is a demonstrated “public safety” need. According to Corps representatives, public safety is not a significant factor in overriding the ESA designation especially when adjacent private land exists. Page 1 of 3 Town CouncilPage 254 of 271Meeting Date: March 27, 2018 Criterion # 1: Recent discussions with the Trophy Club Country Club General Manager indicate a willingness to consider an easement on club property; however, any modification that would negatively impact the overall integrity of the course or require a change to the # 8 hole on the Whitworth course would likely not be approved. Any request for consideration would require a legal review and ultimately approval by the Senior Vice President of Club Corp. Criterion # 2: The proposed roadway would not qualify as a regional arterial as it is solely contained within the Trophy Club Town limits and therefore does not traverse multiple jurisdictions. Criterion # 3: The Town’s Police and Fire Chiefs researched, evaluated, and compiled critical information related to emergency response times and the Town’s emergency evacuation plan in an effort to establish a demonstrated “public safety need.” “High hazard” response was also evaluated, but no significant impact to the Town’s overall public safety posture was identified. Additionally, it was determined that no commercial establishments within the Town, including the MUD #1 Water Treatment Facility stores enough hazardous material to require a Tier II document listing the hazardous product and describing the hazard. It is recognized that response times are critical to the successful outcome of all emergency events. In the event of cardiac or respiratory arrest, patients have only 4 to 6 minutes for definitive care to be administered before irreversible damage is done to the brain and other organs; dramatically decreasing the chances of survivability and/or returning to relative quality of life. The response time to administer definitive care or treatment intervention is critical in all EMS related emergencies to ensure a chance for better outcomes. Quick response times are critical in fire emergencies as well. For example, in a structure fire uncontrolled burning approximately doubles in size each minute, with flash over in the room of origin occurring in approximately 10 min. Flash over is the ignition of all products of combustion (smoke) and the remaining contents in a room all at once. Once flash over occurs anyone remaining in the room will not survive and the chances of containing the fire to the room of origin significantly decreases. Police emergencies are no different in that response times are critical to successful incident resolution. Generally, a 3 to 6 minute response time for most incidents is acceptable. The standard protocol for the Town’s Police Department is to maintain a staffing level of two officers per shift; one officer assigned to each side of Town. Should it become necessary for one officer to respond outside of his/her area to the other side of Town, and depending upon the original location and destination, a response time of 9 to 13 minutes is expected. Specific response times are also dependent on the type of response (non-emergent or code (lights & siren)). Record analysis further revealed the following police-specific response times: 1. Town Hall to 2814 Trophy Club Drive: 4.9 miles, 12 minutes (non-emergent), 7 minutes (code). 2. Town Hall to 650 Indian Creek Drive: 2.6 miles, 8 minutes (non-emergent), 4 minutes (code). Page 2 of 3 Town CouncilPage 255 of 271Meeting Date: March 27, 2018 3. 652 Indian Creek Drive to 2804 Trophy Club Drive: 6.7 miles, 18 minutes (non- emergent), 11 minutes (code). Response times from the fire station to the furthest north regions of the district off of Trophy Club Drive average 6 minutes and 30 seconds, with response times to the further north regions of the district off of Indian Creek Drive virtually the same. There are few data points that can be compiled for fire units responding from one side of town to the other, but in the instances where data is available, response times averaged 12 minutes. In the Town’s current Emergency Operation Plan, evacuation routes for the Town require residents to utilize one of four exit strategies: 1.Trophy Club Drive to Bobcat Blvd., to the Marshall Creek/Highway 377 exit; 2.Trophy Club Drive to the Trophy Lake Drive/Highway 114 exit; 3.Indian Creek Drive to Trophy Wood Drive/Highway 114 service road exit or; 4.Trophy Club Drive to the Highway 114 exit (see attached map). The addition of the loop road would allow a secondary exit for residents in the event of a natural disaster, hazardous material incident, or other emergency obstructing through traffic on either Trophy Club Drive or Indian Creek Drive (see attached map). Residents could also be temporarily impacted by motor vehicle accidents obstructing the roadway or structure fires requiring a supply line connected to fire hydrants that are only on the south and east side of Indian Creek Drive. These obstructions can last up to 2 to 3 hours and would limit both resident vehicular traffic and emergency response to affected areas. Summary: Although the addition of a loop road would enhance emergency service to Town residents by potentially decreasing response times from one side of Town to the other, and increase the ability of residents to evacuate the Town in the event of a natural disaster or other emergency causing road blockage, the number of data points supporting the known decrease in response times make the reliability of the projected times very low. The low number of data points also suggests that the probability of the need for response to and from these locations is also low. However just as in the case of a natural disaster, although probability is low, the impact to Town residents and Town infrastructure could be significant should such an event occur. Attachments: Loop Road Presentation Council Consideration and Direction: Based upon previous communications with Corps representatives, the inability to demonstrate a specific public safety need, the absence of any significant hazardous material storage facilities, and the current availability of multiple evacuation routes within the Town; it would appear a successful appeal of the 2014 “Loop Road” denial letter is unlikely. Page 3 of 3 Town CouncilPage 256 of 271Meeting Date: March 27, 2018 Town of Trophy Club 1 Trophy Wood Drive Trophy Club, Texas 76262 Legislation Details (With Text) File #:2018-122-T Version:1 Name: Type:Agenda Item Status:Regular Session File created:2/26/2018 In control:Town Council On agenda:3/27/2018 Final action: Title:Discussion of items for Future Agendas to include agenda items for consideration on the April 10, 2018 Council agenda and items from the Town Council Future Agenda Items list (H. Fimbres). A)Item No. 2 - Discussion of Green Ribbon grants for the beautification along the sound wall on State Highway 114. (Sanders 3/8/2016) (1-June 14, 2016) (2-September 13, 2016) (3-December 13, 2016) (4-March 14, 2017) (5-September 12, 2017) (6-March 27, 2018) Attachments:April 10, 2018 Proposed Agenda.pdf Items for Future Agendas updated 02-28-2018.pdf DateVer.Action ByActionResult Agenda Item No. 13: DiscussionofitemsforFutureAgendastoincludeagendaitemsforconsiderationontheApril10,2018Councilagenda and items from the Town Council Future Agenda Items list (H. Fimbres). A)ItemNo.2-DiscussionofGreenRibbongrantsforthebeautificationalongthesoundwallonStateHighway114. (Sanders3/8/2016)(1-June14,2016)(2-September13,2016)(3-December13,2016)(4-March14,2017)(5- September 12, 2017) (6-March 27, 2018) Town CouncilPage 267 of 271Meeting Date: March 27, 2018 Meeting Date: April 10, 2018 Regular Session Start Time 7:00 p.m. No. Announcements & Reports Receive Town Manager Class' update regarding the following, discussion and 1Town Mgr provide input regarding same (T. Class): *Early Voting Receive Town Council Liaison update; discussion of same (H. Fimbres): 2Town Sec STAFF RESORDPROCFile IDDept No. Consent RPT Consider and take appropriate action regarding the Town Council Special Session 3Town Sec Minutes dated March 27, 2018 (H. Fimbres). Consider and take appropriate action regarding the Town Council Joint Session Town Sec 4 Minutes dated March 27, 2018 (H. Fimbres). Consider and take appropriate action regarding the financial and variance report 5Finance dated February 2018 (A. Karkauskas). ConsiderandtakeappropriateactionregardingtheSecondQuarterInvestment 6Finance Report for Fiscal Year 2018 (A. Karkauskas). Consider and take appropriate action regarding an Interlocal Joint Election Agreement between the Town of Trophy Club and Tarrant County Elections for 7Town Sec administration of the Town's May 5, 2018 Special Election (H. Fimbres). STAFF No. Regular SessionRESORDPROCFile IDDept RPT Badge pinning ceremony for newly hired Police Officers (T. Class). 8Town Mgr Standards of Care 9Parks Conduct a Public Hearing regarding an Ordinance renewing Section 1.08.001 entitled “Youth Programs Standards of Care” of Divistion1 entitled “Generally” of Article 1.08 entitled “Parks and Recreation” of Chapter 1 entitled “General A Provisions” of the Town of Trophy Club Code of Ordinances; and providing an effective date (T. Jaramillo). Consider and take appropriate action regarding an Ordinance renewing Section 1.08.001 entitled “Youth Programs Standards of Care” of Divistion1 entitled “Generally” of Article 1.08 entitled “Parks and Recreation” of Chapter 1 entitled B “General Provisions” of the Town of Trophy Club Code of Ordinances; and providing an effective date (T. Jaramillo). Consider and take appropriate action regarding access to Freedom Dog Park (T. 10Parks Jaramillo). Consider and take appropriate action regarding a grant to install lighting at 11Parks Harmony Park (T. Jaramillo). Consider and take appropriate action regarding reinstalling the Dumpin’ Buccaneer 12Parks feature at the Splash Pad (T. Jaramillo). Town CouncilPage 268 of 271Meeting Date: March 27, 2018 Meeting Date: April 10, 2018 Regular Session Start Time 7:00 p.m. Recieve an update from Town Staff and take appropriate action regarding land that: ( A) The Town owns for the possibility of residents to acquire the land; and (B) 13Parks Is maintained by the Town but not owned (T. Jaramillo). Consider and take appropriate action regarding an Ordinance amending various Sections of Appendix A, Fee Schedule, within the Town’s Code of Ordinances (T. 14Town Mgr Class). STAFF No. Upcoming Agenda & Council Future Agenda Items List UpdateRESORDPROCFile IDDept RPT Discussion of items for Future Agendas to include agenda items for consideration on the April 24, 2018 Council agenda and items from the Town Council Future 15Town Sec Agenda Items list (H. Fimbres). STAFF RESORDPROCFile IDDept No. Executive Session RPT Pursuant to the following designated sections of the Texas Government Code, 16Town Sec Annotated, Chapter 551 (Texas Open Meetings Act), the Council will convene into Section 551.074 Personnel Matters under Subsection (1) to discuss or deliberate A the appointment, evaluation and duties of a public officer or employee: Quarterly Goals and Objectives for Council Appointed Employees (Town Council) 1) Crime Control and Prevention District (H. Fimbres) 2) STAFF No. Regular SessionRESORDPROCFile IDDept RPT Consider and take appropriate action repealing Resolution 2017-39 and adopting a new Resolution, filling one (1) vacant position for the remainder of an unexpired 17Town Sec term on the Crime Control and Prevention District Board; reaffirming existing appointments; and providing an effective date (H. Fimbres). Consider and take appropriate action regarding the Executive Session (H. Fimbres). 18Town Sec Town CouncilPage 269 of 271Meeting Date: March 27, 2018 Town Council Future Agenda Items List (Updated 02/28/2018) 1. *Review negotiating with the Trophy Club Municipal Utility District No. 1 to transfer the title for the land that the Annex Building is built on and the maintenance building by the Wastewater Treatment Plant. (Lamont 11/10/2015) (1-February 9, 2016) (2-May 10, 2016) (3-August 9, 2016)(4-November 8, 2016)(5-February 14, 2017) (6-May 23, 2017) (7-May 22, 2018) *Discussion after May 2018 election 1/12/2016 – At the January 12, 2016 Council meeting, Council made TCMUD No. 1 an offer regarding the Annex Building. 5/10/2016 - Town Manager Seidel advised that Town Staff are continuing to work on this item. 8/9/2016 - Mayor Sanders advised that several items have taken precedence and that this item can remain on the list until the applicable time to deal with it. 9/19/2016 – This item was scheduled to be placed on a future Joint Meeting agenda, tentatively for January 2017, with the TCMUD No. 1 Board of Directors. 11/8/2016 – Council consensus was to leave this item on the Future Agenda Items list. 2/20/2017 – Council moved this item to be discussed during the February 25, 2017 Council Retreat. 3/28/2017 – Mayor Sanders added the maintenance building by the Wastewater Treatment Plant to this item. 5/23/2017 - Mayor Sanders advised that his intent was that the Annex Building would be utilized for Town storage after Staff relocated into the new Town Hall facility . 2. Discussion of Green Ribbon grants for the beautification along the sound wall on State Highway 114. (Sanders 3/8/2016) (1-June 14, 2016) (2-September 13, 2016) (3-December 13, 2016) (4-March 14, 2017) (5-September 12, 2017) (6-March 27, 2018) 6/14/2016 – Mayor Sanders advised that when the sound wall along State Highway 114 is installed, this item would assist with shrubbery and landscaping through a grant application. 9/13/2016 – Mayor Sanders received consensus to leave this item due to the upcoming construction of the sound wall. Town Manager Seidel advised that it could be accomplished through a tri-city partnership with Westlake and Roanoke. 12/13/2016 – Council consensus was to leave this item on the Future Agenda Items list. 3/28/2017 – Mayor Sanders advised that he wanted to pursue moving forward with this item because this grant greatly assisted with the beautification of Davis Boulevard through the Town of Westlake. 6/13/2017 – Mayor Sanders requested to delay this item for an update because the Metroport Cities Partnership was attempting to secure a Regional Green Ribbon Grant for the beautification of the State Highway 114 corridor through Westlake, Trophy Club, North Lake, and Roanoke. 9/12/2017 – Mayor Sanders advised that the next Metroport Cities Partnership meeting was scheduled for September 21, 2017 and this item was on their agenda to be discussed. 9/26/2017 – Mayor Sanders advised that Metroport Cities Partnership would be moving forward with a grant application for beautification. 12/12/2017 – Mayor Sanders advised that there was currently no new information to provide. Page 1 of 2 Town CouncilPage 270 of 271Meeting Date: March 27, 2018 3. Receive an update from Town Staff regarding Entryway Monumentation and Landscaping for the Town of Trophy Club. (Sanders 2/27/2018) (1-May 22, 2018) Page 2 of 2 Town CouncilPage 271 of 271Meeting Date: March 27, 2018