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Agenda Packet 07/12/2023 Special SessionTown of Trophy Club Special Meeting Agenda Packet Town Council 1 Trophy Wood Drive Trophy Club, Texas 76262 July 12, 2023 7:00 PM Council Chambers CALL TO ORDER AND ANNOUNCE A QUORUM ­ Led by Mayor Jeannette Tiffany COMMUNITY FOCUS INVOCATION   PLEDGES led by Council Pledge of Allegiance to the American Flag. Pledge of Allegiance to the Texas Flag. PUBLIC COMMENTS This is an opportunity for citizens to address the Council on any matter. The Council is not permitted to take discuss or take action on any presentations made to the Council. Presentations are limited to matters over which the Council has authority. Speakers have up to four (4) minutes or the time limit determined by the Presiding Officer. Each speaker must have submitted their request to speak by completing the Speaker’s Form or you may also email mayorandcouncil@trophyclub.org ANNOUNCEMENTS AND REPORTS 1.Andrie Krahl, Manager of Public Affairs for Atmos Energy, to present a check to the Fire Department. INDIVIDUAL ITEMS 2.Discuss, take appropriate action, and provide direction on the MUD Fire Station transfer of function, or not, to the Town of Trophy Club. 3.Consider and approve amending the Fiscal Year 2022­2023 (FY23) Budget of the Town of Trophy Club, Texas; providing for an amendment to correct funds related to the property tax and other revenue funds. 4.Consider and approve the amending of the tax rate on the Fiscal Year 2022­2023 (FY23) Budget of the Town of Trophy Club, Texas; providing for a correction to the tax rate calculated on the budget to 0.434799. 5.Give direction regarding PID annexation into the MUD. EXECUTIVE SESSION 6.Pursuant to the following designated section of the Texas Governmental Code, annotated, Chapter 551 (Texas Open Meetings Act), the Town will recess into executive session to discuss the following: a)Section 551.071 Consultation with Attorney RECONVENE INTO REGULAR SESSION ADJOURN The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meeting Act, LGC.551.071 CERTIFICATION I certify that the above notice was posted on the bulletin board at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas, on Friday, July 7, 2023, by 5:00 p.m. in accordance with Chapter 551, Texas Government Code. __________________________________ Maggie McCormick­Krukowski Records Analyst If you plan to attend this public meeting and have a disability that requires special needs, please contact the Town Secretary’s Office at 682­237­2900, 48 hours in advance, and reasonable accommodations will be made to assist you. 1 Town of Trophy ClubSpecial Meeting Agenda PacketTown Council 1 Trophy Wood DriveTrophy Club, Texas 76262July 12, 2023 7:00 PM Council ChambersCALL TO ORDER AND ANNOUNCE A QUORUM ­ Led by Mayor Jeannette TiffanyCOMMUNITY FOCUSINVOCATION  PLEDGES led by CouncilPledge of Allegiance to the American Flag.Pledge of Allegiance to the Texas Flag.PUBLIC COMMENTSThis is an opportunity for citizens to address the Council on any matter. The Councilis not permitted to take discuss or take action on any presentations made to theCouncil. Presentations are limited to matters over which the Council has authority.Speakers have up to four (4) minutes or the time limit determined by the PresidingOfficer. Each speaker must have submitted their request to speak by completingthe Speaker’s Form or you may also email mayorandcouncil@trophyclub.orgANNOUNCEMENTS AND REPORTS1.Andrie Krahl, Manager of Public Affairs for Atmos Energy, to present a check to theFire Department. INDIVIDUAL ITEMS 2.Discuss, take appropriate action, and provide direction on the MUD Fire Station transfer of function, or not, to the Town of Trophy Club. 3.Consider and approve amending the Fiscal Year 2022­2023 (FY23) Budget of the Town of Trophy Club, Texas; providing for an amendment to correct funds related to the property tax and other revenue funds. 4.Consider and approve the amending of the tax rate on the Fiscal Year 2022­2023 (FY23) Budget of the Town of Trophy Club, Texas; providing for a correction to the tax rate calculated on the budget to 0.434799. 5.Give direction regarding PID annexation into the MUD. EXECUTIVE SESSION 6.Pursuant to the following designated section of the Texas Governmental Code, annotated, Chapter 551 (Texas Open Meetings Act), the Town will recess into executive session to discuss the following: a)Section 551.071 Consultation with Attorney RECONVENE INTO REGULAR SESSION ADJOURN The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meeting Act, LGC.551.071 CERTIFICATION I certify that the above notice was posted on the bulletin board at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas, on Friday, July 7, 2023, by 5:00 p.m. in accordance with Chapter 551, Texas Government Code. __________________________________ Maggie McCormick­Krukowski Records Analyst If you plan to attend this public meeting and have a disability that requires special needs, please contact the Town Secretary’s Office at 682­237­2900, 48 hours in advance, and reasonable accommodations will be made to assist you. 2 Page 1 of 2 To: Mayor and Town Council From: Patrick Arata, Town Manager CC: Tamara Smith, Assistant to the Town Manager Re: MUD Fire Station Transfer of Function Agenda Item: Discuss, take appropriate action, and provide direction on the MUD Fire Station transfer of function, or not, to the Town of Trophy Club. Strategic Link: Administrative & Financial-Exercise fiscal discipline in all Town operations. Background and Explanation: The Town of Trophy Club has a long-standing history of collaborating with the Trophy Club Municipal Utility District (MUD) Number 1 in providing Fire and Emergency Medical Services to the Towns citizens. The services are split, the MUD operating the Fire Services and the Town operating the Emergency Medical Services. As we prepare for the next fiscal year, we are proposing three options that will help provide the best service to the citizens of Trophy Club. Option Number 1: The Town will prepare to take on the full-service needs of the citizens by transferring the functions of the MUD Fire Services to the Town. The Town would take operational control. The Town would take on full financial responsibility. Option Number 2: We would renew a new Interlocal Cooperation Agreement (ILA) with the MUD that would provide the MUD management oversight of Fire Services and the Town management oversight of the Emergency Medical Services. The financial responsibilities would be split 50/50 between the MUD and Town. Option Number 3: The Town will do nothing, and the operations will revert to the original 2016 ILA. The Town will prepare the budget for Fire Protection Services and present that budget to the Town Council and District for approval at a joint meeting. The MUD would fund 50% of all costs of personnel 3 Page 2 of 2 providing Fire Services, 100% all costs of services and supplies associated with Fire Services, 100% of all debt obligations, and 100% of all Capital Replacement Costs. The Town will fund all costs associated with Fire Services that are not part of the approved budget by utilizing an annual assessment of the PID and full control, or other revenues identified at the sole discretion of the Town, and oversight over the management of personnel. Financial Considerations: Option #1 would consider transferring the full function of the Fire and Emergency Medical Services to the Town. The Town will take full financial responsibility. Option #2 would consider a joint 50/50 share of all financial and operational oversight of both the MUD and the Town. Option #3 would consider reverting to the 2016 ILA, creating a split cost and oversight of the MUD and Town. Legal Review: We have contracted with Taylor Olson Adkins Sralla Elam (TOASE) Legal Firm who is reviewing all options and ILA’s. Board/Commission/ or Committee Recommendation: Not applicable Staff Recommendation: Not applicable Attachments: Not applicable Town Council Approval: Mayor Jeanette Tiffany or designee 4 AMENDED AND RESTATED INTERLOCAL COOPERATION AGREEMENT FOR ADMINISTRATION OF FIRE PROTECTION SERVICES THIS AGREEMENT is made and entered into as of the Effective Date, by and between Trophy Club Municipal Utility District No. 1, a district created pursuant to Section 59, Article XVI, Texas Constitution and the Texas Water Code, Chapter 54 hereinafter referred to as "District", and the Town of Trophy Club, a home rule municipal corporation, hereinafter referred to as "Town". W I T N E S S E T H: WHEREAS, District is a duly organized political subdivision of the State of Texas engaged in the administration of fire protection and related services for the benefit of those persons residing, traveling within, or being physically located within the boundaries of District, which boundaries include, without limitation, portions of the incorporated and unincorporated limits of the Town of Trophy Club, Texas; and WHEREAS, the District and the Town are parties to that certain Interlocal Cooperation Agreement for Administration of Fire Protection Services” dated September 19, 2016 (the “Prior ILA”) setting forth certain agreements of the parties relating to Fire- Fighting Activities, Fire Protection Services, and Fire Functions (as hereinafter defined) to residents of the District and the Town, including to residents of the Trophy Club Public Improvement District No. 1 (hereinafter also referred to as “PID”); WHEREAS, the provision of Fire Functions is a governmental function that serves the public health and welfare, promotes efficiency and effectiveness of local governments, and is of mutual concern to the contracting parties; and WHEREAS, District is individually authorized to perform Fire Functions pursuant to Section 49.351 of the Texas Water Code, and the Town is individually authorized to perform Fire Functions pursuant to its police powers and the parties desire to enter into this Agreement regarding the performance of Fire Functions; and WHEREAS, the lnterlocal Cooperation Act, Texas Government Code, Chapter 791, et seq., as amended (the "Act") provides authority for governmental entities of the State of Texas to enter into interlocal agreements with each other regarding governmental functions and services as set forth in the Act; and WHEREAS, Town and District have determined it necessary and appropriate to enter into a new agreement for the operation of Fire Protection Services superseding the Prior ILA for Fire Protection Services. NOW, THEREFORE, District and Town, for and in consideration of the recitals set forth above and terms and conditions below, agree as follows: 5 Page 1 of 12 I. Incorporation I Term 1.1 Incorporation of Recitals. The foregoing recitals are agreed upon and incorporated herein as a part of this Agreement. 1.2 Term. This Agreement shall become effective upon the Effective Date and shall remain in effect until September 30, 20242023. The Prior ILA shall terminate for all purposes as of the Effective Date. II. Definitions 2.1 As used herein, the words and phrases hereinafter set forth shall have the meanings as follows: A.“Effective Date” shall mean October 1, 20232021. B."Eligible Persons" shall mean those persons residing, traveling within, or being physically located within the corporate boundaries of the Town of Trophy Club, Texas and/or District, including without limitation both incorporated and unincorporated areas, and shall also include those persons residing, traveling within, or being physically located within the corporate boundaries of another political subdivision of the State of Texas with whom Town and/or District have a mutual aid agreement to provide fire protection services and those persons located within the fire district as designated by Denton County and accepted by Town and/or District. C.“Emergency Medical Services” shall mean any and all of the customary and usual activities of trained paramedics providing emergency health care services, D."Fire-fighting Activities", "Fire Protection Services", or "Fire Functions" shall mean any and all of the customary and usual activities of a fire department, including fire suppression, fire prevention, training, safety education, maintenance, communications, photography, and administration. E.“Maximum Annual Payment Amount” means the maximum total payment that may be made by District to Town each year to pay District’s proportionate share of contribute funding to for the cost of Fire Functions in accordance with this Agreement. The Maximum Annual Payment Amount shall be the amount of revenues available to the District from the levy of a fire tax without triggering the Voter Approval Tax Rate. The District shall not be contractually obligated to levy, or collect, a tax to pay the Maximum Annual Payment Amount to Town in any year; however the District shall be contractually obligated to fund its proportionate share of the cost of Fire Functions in accordance with this Agreement, and in all cases, the maximum annual payment obligation of District to Town under this Agreement shall be limited to the final budget amount approved by the Board of Directors of the District. 6 Page 2 of 12 F.“Voter Approval Tax Rate” shall have the meaning set forth in Section 49.23602(a)(4) of the Texas Water Code. III. Budget and Funding 3.1 Budget and Funding Matters: A.Budget Preparation: The parties agree to the following schedule of events for purposes of preparation of an annual budget for funding Fire Functions: i. Town shall prepare a preliminary draft budget for Fire Protection Services and furnish that draft budget to the District on or before June 1 of each year. The draft budget shall specify all projected revenues and expenses relating to Fire Functions for the annual period and shall separately identify the expenses for which District is responsible for payment in accordance with the funding provisions of this Agreement. ii. District shall provide initial comments and requested modifications to the preliminary draft budget to the Town on or before June 30 of each year. iii. After receipt of June preliminary appraised value information from Denton and Tarrant County, but no later than June 30th of each year, District will provide to Town a preliminary estimate of the Maximum Annual Payment Amount. iv. Within seven (7) days after receipt of certified appraised value information from Denton and Tarrant County, District will provide to Town the Maximum Annual Payment Amount. To the extent District is aware of any obligations or circumstances that would prevent District from funding the Maximum Annual Payment Amount, District shall furnish such information and the best estimate of available funding to be incorporated into the preliminary draft budget for Fire Functions. v. Representatives of Town and District shall cooperate in good faith to revise and finalize a preliminary draft budget for Fire Functions for subsequent consideration by the governing bodies of Town and District. vi. The governing bodies of Town and District may, but shall not be obligated to, meet before August 1 of each year (or such other date approved by the parties) to discuss the preliminary budget. vii. Each party shall adopt a fiscal year budget in accordance with their respective statutory obligations, but the adopted budget for Fire Functions may not allocate to District an annual payment obligation that exceeds the Maximum Annual Payment Amount as furnished by District to Town based on final certified appraised values in District or any lesser amount available for funding as 7 Page 3 of 12 communicated by District to Town, or that includes any costs for which Town is responsible for payment under this Agreement. B. Funding Obligations: District and Town shall share the funding of costs associated with Fire Protection Services provided to Eligible Persons as defined herein, pursuant to the approved Budget and in accordance with the terms of this Agreement; and, under no circumstance shall the District’s share of funding costs during any fiscal year exceed the Maximum Annual Payment Amount or the budgeted expenses approved by the District. Such funding shall be accomplished in accordance with the following terms and conditions: 1) District shall continue to pay all debt service for debt previously incurred by District for Fire Functions for as long as the debt remains outstanding. 2) District shall fund up to 50% of all budgeted and actual costs of personnel providing Fire Protection Services provided to Eligible Persons as defined herein. 3) Town shall fund the remaining percentage of all budgeted costs of personnel providing Fire Protection Services provided to Eligible Persons as defined herein. 4) District shall fund up to 100% of budgeted and actual costs of services and supplies associated with Fire Protection Services and supplies. 5) In recognition that Fire Protection Services shall be provided to persons and properties located within the Town but not within District, the Town shall levy and collect an annual assessment on and collect from the owners of real property and taxable improvements thereon located within the Town but not within District in accordance with the Public Improvement District Act, Chapter 372 of the Texas Local Government Code, as amended. Such assessment shall be adopted by Town Council through the approval of the Annual Service and Assessment Plan for Authorized Services for the Trophy Club Public Improvement District No. 1. If the beneficial assessment determined in the SAP (Service and Assessment Plan) is an amount less than the revenues that would be generated based on the fire tax rate of District, Town shall fund the difference through other revenues identified in Town’s sole discretion. 6) Town shall pay for all costs associated with Fire Functions that are not part of the approved budget, unless the District pre-approves the expenditure. By way of example, if Town approves salary increases or purchases equipment for Fire Functions (without District approval) outside of the approved budget, Town shall be solely responsible for funding such costs. 7) The District agrees in good faith to communicate to the Town the intent to use fire reserve funds not part of the approved budget that would reduce the fire reserve fund balance below thirty (30) percent. 8) The District agrees to communicate the intent to create new debt related to Fire 8 Page 4 of 12 Services allowing the Town the option to fund the expenditure prior to the debt being issued. C. Payment: Payments from the District for the purpose of Fire Protection Services shall be paid to the Town on a monthly basis. The monthly payments shall constitute the entirety of the approved budget for District’s payment divided by twelve (12) months, minus total PID assessment fee for Fire Protection services, beginning on October 1 and concluding on September 30 of each fiscal year of the term of this Agreement. Payments will become past due fifteen (15) business days after the established due date. The sole source of revenues for payment of the District’s funding obligations under this Agreement shall be the District’s fire tax. Under no circumstances shall the District be obligated to pay an amount to Town during a fiscal year that exceeds the Maximum Annual Payment Amount or the amount of the budget for Fire Functions approved by Board of Directors of District. 3.2 Audit, Revenues and Expenses: A. Annual Audit and Revenues. Town shall conduct an annual audit by an independent auditor that identifies the actual fiscal year expenses and revenues for Fire Functions. The audit for each year shall be furnished to District on or prior to May 1 of the subsequent year. By May 1 of each year, Town shall also identify and furnish to District a listing of all revenues related to Fire Functions (whether or not budgeted) for the prior year. B. Expense Detail. Town shall furnish to District evidence of all expenses and costs relating to Fire Functions funded by District (in whole or in part) within 15 days after receipt of a request from District. C. Reconciliation Payment. (i) Overpayment. Any overpayment by District for a fiscal year period shall be reimbursed by Town within 30 days after receipt of a written invoice for payment from District. Overpayments may arise because the Town’s expenses for Fire Functions are less than budgeted, actual revenues are greater than budgeted, ineligible costs are allocated to District, or for other reasons. (ii) Underpayment. Any underpayment by District for its share of expenses as identified in this Agreement and the adopted budget shall be reimbursed to Town within thirty (30) days after receipt of a written invoice for payment from Town. Underpayments may arise because Town’s expenses for Fire Functions are more than budgeted, actual revenues are less than budgeted, District fails to pay its share of increased costs of budgeted items for which District is obligated to pay under this Agreement, or for other reasons. NOTE: OR Overpayment by Town???? 9 Page 5 of 12 IV. Operational Obligations and Rights of the Parties 4.1 District Obligations and Rights: District and Town shall perform all of their respective duties and obligations as herein stated and shall devote sufficient time and attention to the execution of such duties in full compliance with the terms and conditions of this Agreement. 4.2 Town Obligations and Rights: A.Upon the effective date of this Agreement, Town shall be responsible for providing Fire Protection Services to Eligible Persons, including but not limited to assuming full responsibility for the operational control and management of Fire Protection Services. The Town's responsibilities hereunder shall include, without limitation, the control, and management of all personnel as more specifically set forth in Section VII and all policy and personnel matters related to and arising out of providing Fire Protection Services and the obligations specifically assumed hereunder. B. Town, acting through its Town Manager or designees, shall oversee the daily operations of Fire Protection Services. C. The officers and employees of Town shall perform all duties and responsibilities necessary to render Fire Protection Services to all Eligible Persons. D. It shall be the responsibility and duty of Town, its officers and employees, within the sole discretion of such officers and employees, to determine priorities in the dispatching and use of such equipment and personnel to perform Fire Functions under this Agreement. E. Town shall have the authority to enter into mutual aid agreements on behalf of District and Town to provide Fire Protection Services as deemed appropriate by Town. The term of such agreements shall run concurrently with the term of this Agreement and shall terminate upon termination of this Agreement. F. Town shall perform all of its duties and obligations as herein stated and shall devote sufficient time and attention to the execution of such duties provided on behalf of District in full compliance with the terms and conditions of this Agreement and shall provide immediate and direct supervision of employees, agents, contractors, sub- contractors and/or laborers, if any, in the furtherance of the purposes, terms and conditions of this agreement for the mutual benefit of Town and District. G. District may hire Fire Auditors of their choice to review physical Fire Department assets and operator practices on an annual basis for benefit of District and Town; audit may 10 Page 6 of 12 occur during the month of April. (See Attachment “B”). All auditors fees for such audits (excluding fiscal year financing audits) will be paid by the District. H.The Town shall provide the District timely notice of any accident, damage, dangerous or defective condition relating to District assets under this agreement. V. Assets 5.1 Ownership. Prior to the commencement of this aAgreement, all assets owned or directly purchased by District utilized for Fire Protection Services shall remain the property of District. This Agreement does not affect right, title or interest to such property. All assets owned or directly purchased by Town utilized for Fire Protection Services shall remain the property of the Town. This Agreement does not affect right, title, or interest to such property. 5.2 Ownership Upon Termination. Upon termination of this Agreement, each party shall retain ownership of assets purchased with its respective funds unless both Town and District elect to negotiate terms to transfer ownership to the other party. VI. Employee Supervision and Organization 6.1 Control and Oversight. Town shall have control and oversight over Fire Protection Services and control and oversight over Emergency Medical Services. Town shall have exclusive authority to establish Standard Operating Procedures for Fire/EMS Protection Services. (hereinafter collectively, “SOPs"). 6.2 Benefits and Human Resources Services. In accordance with Town personnel policies, Town shall provide benefits and human resources services to all eligible employees providing Fire Protection Services. DISTRICT shall provide funding as set forth in Subsection 3.1(B). The Parties understand and agree that on and after the effective date of this Agreement, all employees providing Fire Protection Services shall be Town employees and shall be solely subject to Town personnel policies and SOPs. VII. Consideration The parties agree that sufficient consideration for this Agreement exists and is found in the payments made pursuant to Section III of this Agreement and in the cross promises set forth above and other good and valuable consideration. District's agreement to fund Fire Functions as provided in Section III above in exchange for Town's agreement to oversee and manage Fire Functions for Eligible Persons as provided in Section IV above, shall serve as sufficient consideration under this Agreement. Each party hereto paying 11 Page 7 of 12 for the performance of governmental functions or services shall make such payments from current revenues legally available to the paying party. Each party further agrees that it is fairly compensated for the services or functions performed under the terms of this Agreement. VIII. Negligence of Parties/Insurance 8.1 Town Negligence/Insurance. Town shall be responsible for its sole negligence. Town agrees to and accepts full responsibility for the acts, negligence, and/or omissions of all Town's officers, employees, and agents acting under its direction. Town shall provide liability insurance to cover the acts and omissions of Town, its officers, employees, and agents performing obligations under this agreement, including but not limited to all personnel providing Fire Protection Services. Town shall maintain general liability insurance to cover Town owned or leased assets. 8.2 District Negligence/Insurance.District shall be responsible for its sole negligence. District agrees to and accepts full responsibility for the acts, negligence, and/or omissions of all District's officers, employees, and agents acting under its direction. District shall maintain general liability insurance to cover District owned or leased assets. District shall provide liability insurance to cover the acts and omissions of District, its officers, employees, and agents performing obligations under this Agreement. 8.3 Texas Government Code Section 791.006. The assignment of liability under this Section is made pursuant to Section 791.006 of the Texas Government Code, as amended, and the assignment of liability under this Section is intended to be different than liability otherwise assigned under Section 791.006(a) of the Texas Government Code. IX. Immunity The fact that Town and District accept certain responsibilities relating to the rendering of Fire Protection Services under this Agreement as part of their responsibility for providing protection for the public health makes it imperative that the performance of these vital services be recognized as a governmental function and that the doctrine of governmental immunity shall be, and it is hereby, invoked to the extent possible under the law. Neither Town nor District waives any immunity or defense that would otherwise be available to it against claims arising from the exercise of governmental powers and functions. X. Default I Termination In the event that either party hereto breaches any term or condition of this Agreement, 12 Page 8 of 12 this Agreement may be terminated by the aggrieved party if such default is not cured within a period of one hundred eighty (180) days after receipt of written notice of default by the party allegedly in breach of its obligations hereunder. At the option of the aggrieved party, if such default is not cured within the one hundred eighty (180) day period, this Agreement shall immediately terminate without further notice, unless an extension is mutually agreed and approved by both Town and District. XI. Entire Agreement This Agreement represents the entire and integrated agreement between Town and District and supersedes all prior negotiations, representations, and/or agreements, either written or oral, including the Prior ILA. This Agreement may be amended only by written instrument signed by both parties. XII. Venue The laws of the State of Texas shall govern this Agreement and each of its terms and provisions, including but not limited to the rights and duties of the parties hereto, and exclusive venue shall be in Denton County, Texas. XIII. Severability In the event that any portion of this Agreement shall be found to be contrary to law, it is the intent of the parties hereto that the remaining portions shall remain valid and in full force and effect to the extent possible. XIV. Non-Waiver All rights, remedies, and privileges permitted or available to either party under this Agreement or at law or equity shall be cumulative and not alternative, and election of any such right, remedy, or privilege shall not constitute a waiver or exclusive election of rights, remedies or privileges with respect to any other permitted or available right, remedy or privilege. Additionally, one instance of forbearance by either party in the enforcement of any such right, remedy or privilege against the other party, shall not constitute a waiver of such right, remedy or privilege by the forbearing party. A default by either party under this Agreement shall not result in a forfeiture of any rights, remedies, or privileges under this Agreement by such defaulting party. 13 Page 9 of 12 XV. ANNUAL DISTRICT FINANCIAL AUDIT Town shall provide any documents requested by auditors of District no later than November 30 of each year. [The remainder of this page intentionally left blank.] 14 Page 10 of 12 Signature Authority The undersigned officer and/or agents of the parties hereto are the properly authorized officials and have the necessary authority to execute this agreement on behalf of the parties hereto and each party hereby certifies to the other that any necessary resolutions extending such authority have been duly passed and are now in full force and effect. EXECUTED in duplicate originals. The effective date of this Agreement shall be ____________, 20232021. TOWN OF TROPHY CLUB, TEXAS By: Name: Title:Mayor Date: ATTEST: By: Name: Title:Town Secretary / RMO TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 By: Name: Title:President Date: ATTEST: By: Name: Title:Secretary/Treasurer 15 Page 11 of 12 ACKNOWLEDGEMENTS STATE OF TEXAS § § COUNTY OF DENTON § COUNTY OF TARRANT § This instrument was acknowledged before me on the _____ day of _______________, 20232021 by ____________________, Mayor of the TOWN OF TROPHY CLUB, TEXAS, a home rule municipal corporation, on behalf of such corporation Notary Public in and for the State of Texas STATE OF TEXAS § § COUNTY OF DENTON § COUNTY OF TARRANT § This instrument was acknowledged before me on the _____ day of _______________, 20232021 by _________________, President of the TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1, a conservation and reclamation district of the State of Texas, on behalf of said district. Notary Public in and for the State of Texas 16 Page 1 of 2 To: Mayor and Town Council From: Patrick Arata, Town Manager CC: Tamara Smith, Assistant to the Town Manager Re: Budget Amendment Correction FY 2022-2023 Agenda Item: Consider and approve amending the Fiscal Year 2022-2023 (FY23) Budget of the Town of Trophy club, Texas; providing for an amendment to correct funds related to the property tax and other revenue funds. Strategic Link: Administrative & Financial-Exercise fiscal discipline in all Town operations. Background and Explanation: As we aim to provide accurate information to our citizens and be transparent in the process, we would like to bring to your attention a discrepancy in the current Fiscal Year 2022-2023 budget. Being good stewards of the Town of Trophy Club's dollars, we have found that in the prior year, the budget presented to Council was calculated using an inaccurate tax rate. Through due diligence, we have identified that the Tax Ordinance for Fiscal Year 2022-2023 was set at .434799, but the budget was prepared at a tax rate of .435000. We have contacted Denton County Tax Assessor Collectors and looked at the ramifications of this discrepancy. They have assured us that the Truth and Taxation form, newspaper publication, and property tax bills all provide the accurate number of .434799. We are here to serve the community in the utmost honest and accurate way. We understand that the citizens will have questions, and we will answer them to the best of our abilities. Going forward, we will provide a new naming convention for documents sent to Council on the budget and tax rate. We will work closely with the Finance Subcommittee to stay accountable and continue our duties to serve the community honestly and accurately. Financial Considerations: The Interest and Sinking (I&S) portion of the tax rate would decrease by $27,427, which would equate to $6,000 for a tax rate error and $21,427 for a typographical error. 17 Page 2 of 2 Legal Review: We have contracted with Taylor Olson Adkins Sralla Elam (TOASE) Legal Firm, who has corroborated that the correction is sufficient. The Denton County Tax Assessor-Collector has assured us that all tax documents are accurate and correct and that this was only a budget document error. Board/Commission/ or Committee Recommendation: Not applicable Staff Recommendation: Not applicable Attachments: Not applicable Town Council Approval: Mayor Jeannette Tiffany or designee 18 Page 1 of 2 To: Mayor and Town Council From: Patrick Arata, Town Manager CC: Tamara Smith, Assistant to the Town Manager Re: Tax Rate Amendment on FY 2022-2023 Budget Document Agenda Item: Consider and approve the amending of the tax rate on the Fiscal Year 2022-2023 (FY23) Budget of the Town of Trophy Club, Texas; providing for a correction to the tax rate calculated on the budget to 0.434799. Strategic Link: Administrative & Financial-Exercise fiscal discipline in all Town operations. Background and Explanation: As we aim to provide accurate information to our citizens and be transparent in the process, we would like to bring to your attention a discrepancy in the current Fiscal Year 2022-2023 budget. Being good stewards of the Town of Trophy Club's dollars, we have found that in the prior year, the budget presented to Council was calculated using an inaccurate tax rate. Through due diligence, we have identified that the Tax Ordinance for Fiscal Year 2022-2023 was set at .434799, but the budget was prepared at a tax rate of .435000. We have contacted Denton County Tax Assessor Collectors and looked at the ramifications of this discrepancy. They have assured us that the Truth and Taxation form, newspaper publication, and property tax bills all provide the accurate number of .434799. We are here to serve the community in the utmost honest and accurate way. We understand that the citizens will have questions, and we will answer them to the best of our abilities. Going forward, we will provide a new naming convention for documents sent to Council on the budget and tax rate. We will work closely with the Finance Subcommittee to stay accountable and continue our duties to serve the community honestly and accurately. Financial Considerations: The Interest and Sinking (I&S) portion of the tax rate would decrease by $27,427, which would equate to $6,000 for a tax rate error and $21,427 for a typographical error. 19 Page 2 of 2 Legal Review: We have contracted with Taylor Olson Adkins Sralla Elam (TOASE) Legal Firm, who has corroborated that the correction is sufficient. The Denton County Tax Assessor-Collector has assured us that all tax documents are accurate and correct and that this was only a budget document error. Board/Commission/ or Committee Recommendation: Not applicable Staff Recommendation: Not applicable Attachments: Not applicable Town Council Approval: Mayor Jeannette Tiffany or designee 20 Page 1 of 2 To: Mayor and Town Council From: Patrick Arata, Town Manager CC: Tamara Smith, Assistant to the Town Manager Re: PID Annexation Agenda Item: Give direction regarding PID annexation into the MUD. Strategic Link: Administrative & Financial-Exercise fiscal discipline in all Town operations. Background and Explanation: The Town of Trophy Club funds costs associated with Fire Protection Services by utilizing an annual assessment of real property and improvements located within the Town’s Public Improvement District. The Public Improvement District Act, Chapter 372 of the Texas Local Government Code, states that such assessment shall be adopted by Town Council through the approval of the Annual Service and Assessment Plan for Authorized Services for the Trophy Club Public Improvement District. Annexation of the PID would take the territory of the Town of Trophy Club and incorporate it into the Municipal Utility District No. 1 (MUD). Thereby removing the PID assessment, providing the entities within the PID the opportunity to be taxed instead of assessed, and allowing those entities the opportunity to vote on the publicly elected five-member Board of the MUD. Financial Considerations: The PID Assessment would no longer be collected. Legal Review: We have contracted with Taylor Olson Adkins Sralla Elam (TOASE) Legal Firm, who is reviewing the annexation option. Board/Commission/ or Committee Recommendation: Not applicable 21 Page 2 of 2 Staff Recommendation: Not applicable Attachments: Not applicable Town Council Approval: Mayor Jeannette Tiffany or designee 22