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02.24.2025 TC Agenda Packet TOWN OF TROPHY CLUB MEETING AGENDA TOWN COUNCIL 1 Trophy Wood Drive Trophy Club, Texas 76262 This agenda was amended by adding an item under Section 2 February 24, 2025 6:00 PM Council Chambers CALL WORK SESSION TO ORDER AND ANNOUNCE A QUORUM WORK SESSION ITEM 1. Presentation and discussion of land-use, infrastructure, and site layout options developed for the Small Area Plan project. (Tamara Smith, Assistant to the Town Manager) ADJOURN WORK SESSION CALL REGULAR MEETING TO ORDER (immediately following Work Session or 7:00 p.m., whichever is later) INVOCATION led by Rev. Bill Eason, Fellowship United Methodist Church PLEDGES led by Council Member Pledge of Allegiance to the American Flag Pledge of Allegiance to the Texas Flag COMMUNITY SPOTLIGHT 2. Working for You... Trophy Club a) Strategic Plan FY 2025-2030 Update b) Update from Town Council Members c) Update from Town Manager (Brandon Wright, Town Manager) d) Quick Civic Tip (Dean Roggia, Town Attorney) CONSENT AGENDA This part of the agenda consists of non-controversial, or "housekeeping" items required by law. Items may be removed from Consent by any council member by making such request prior to a motion and vote. Page 1 of 280 3. Consider approval of the February 10, 2025, Town Council work session and regular meeting minutes. (Tammy Dixon, Town Secretary) 4. Consider a resolution repealing Resolution 2025-02; adopting updated Town Council Rules of Procedure; providing for amendments to Section 9, "Boards and Commissions," subsection 9.1. c., "Application Review/Appointments." (Tammy Dixon, Town Secretary) 5. Consider authorizing the Town Manager to negotiate and execute an agreement with Labor Finders for a ten-month temporary staffing contract amount not to exceed $48,000 for staffing services. (Denise Deprato, Director of Human Resources) 6. Consider authorizing the Town Manager to negotiate and execute a purchase and service agreement with PYROTEX, Inc. in the amount of $27,000 for the Fourth of July fireworks show. (Chase Ellis, Director of Parks & Recreation) INDIVIDUAL ITEMS 7. Case SUP-25-001 (Hampton Inn by Hilton Trophy Club) Conduct a public hearing and consider an ordinance approving a specific use permit request by Titan Beverage LLC on behalf of the owner Hydra Hotels LLC (Hampton Inn by Hilton Trophy Club) for alcohol beverage sales for a TABC BG Permit (for on premises or off premises consumption) approximately 250-feet north of SH 114, located at 525 Plaza Dr., Trophy Club, Tarrant County, Texas. (Matt Cox, Director of Community Development) i. Conduct Public Hearing ii. Consider Ordinance Approval 8. Consider accepting the Annual Comprehensive Financial Report for the Town of Trophy Club Fiscal Year 2024. (April Duvall, Director of Finance) 9. Consider proposed options for the Community Pool Renovation Design and Construction Management project. (Chase Ellis, Director of Parks & Recreation) ADJOURN The Town Council may convene into executive session to discuss posted items as allowed by Texas Government Code Sections 551.071 through 551.076 and Section 551.087. Page 2 of 280 CERTIFICATION I do hereby certify that the Notice of Meeting was posted on the bulletin board at the Town Hall for the Town of Trophy Club, Texas, in a place convenient and readily accessible to the general public at all times on the following date and time: February 20, 2025, at 9:45 a.m., and said Notice of Meeting was also posted concurrently on the Town’s website in accordance with Texas Government Code Ch. 551 at least 72 hours prior to the scheduled time of said meeting. /s/ Tammy Dixon Tammy Dixon, Town Secretary 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. Page 3 of 280 TOWN COUNCIL COMMUNICATION MEETING DATE: February 24, 2025 FROM: Tamara Smith, MSL, Assistant to the Town Manager AGENDA ITEM: Presentation and discussion of land-use, infrastructure, and site layout options developed for the Small Area Plan project. (Tamara Smith, Assistant to the Town Manager) BACKGROUND/SUMMARY: In 2024, the Town Council approved six business goals for Fiscal Year 2025. Under the Support Business Focus Area, one objective was to redevelop and create successful business areas fostering a unique sense of place. The initiative for this objective is to continue the redevelopment strategies and themes along the SH114 corridor and other key commercial areas. To address this Council business goal, the town issued a Request for Proposals (RFP) on March 25, 2024, seeking a comprehensive small area plan for properties adjacent to State Highway 114 Frontage Road and Trophy Wood Drive. The aim is to redefine the property layout with a focus on various priorities, including enhancing economic resilience, fostering service-based employment, improving overall quality of life, promoting sustainability, enhancing pedestrian safety and walkability, facilitating future development, and addressing area parking needs. The proposal submission period closed on April 15, 2024. Following a thorough review of bid packets by three EDC members and four staff members, it was determined that The John R. McAdams Company, Inc. ("McAdams") emerged as the top contender among the submissions. In May 2024, both the EDC and Town Council approved a professional services contract with McAdams to lead the small area plan process. The project officially kicked off on July 8, 2024. McAdams divided the process into five phases: Explore, Evaluate, Envision, Enact, and Execute. The Explore phase included the project program, the kick-off meeting, and stakeholder feedback. During this phase, the Town and McAdams conducted interviews with nine businesses in the small area plan to gather insights on their concerns and positive aspects of the area. The Evaluate phase involved inventory, analysis, and a market study of the area, conducted with the help of their third-party consultant, Catalyst. We are currently in the Envision phase. In November 2024, the town and McAdams started the Envision phase, which conducted a community-wide online survey to gather feedback from residents. The goal was to collect valuable insights from as many residents as possible by providing an accessible online platform, particularly for those unable to attend the open house but still wishing to share their input. The survey was promoted through Town-wide communications to maximize visibility and Page 4 of 280 encourage participation. Over a four-week period, 595 responses were received, yielding a 4.15% response rate, which is within the preferred range. The Town is currently in the second half of the Envision phase. McAdams presented to the EDC Board on February 13th, offering an opportunity for feedback on two variations of plan scenarios. Tonight, McAdams will present to the Town Council, and any additional feedback will be incorporated into the plans. BOARD REVIEW/CITIZEN FEEDBACK: The EDC has a subcommittee that meets bi-weekly with McAdams and provides monthly updates to the full EDC Board on progress. The subcommittee offered feedback to McAdams during the January 28th meeting, as well as with the EDC Board on February 13th. The scenarios presented tonight reflect the input from the EDC. Key components from the EDC include: expanding building space to meet market demand, maintaining the current alignment of Trophy Wood Drive for the residents on the east side of Trophy Club, providing an entrance to T.W. King via a cut-through on the east side of Town Hall, and showing the community what is existing versus what will be redeveloped. FISCAL IMPACT: The total amount for the Small Area Plan is $89,437, which will be expended from the Economic Development Corporation Fund. Expenditures to date total $43,681.75, with a remaining balance on the Purchase Order of $43,681.75. LEGAL REVIEW: N/A ATTACHMENTS: 1. Presentation ACTIONS/OPTIONS: This agenda item is being presented for discussion and feedback purposes only. No action will be taken by the Town Council during the work shop. Page 5 of 280 Small Area PlanTown of Trophy Club Page 6 of 280 Project Timeline Planning Process 2 •2024- 03-15 Request for Proposal Posted •2024-04-15 Submitted Official Proposal •2024-05 -20 Executed Contract •2024-07-07 – Kick Off Meeting •2024-09-09 – Meeting with Stakeholders •2024-11-05– Online Survey Went Live •2024-11- 18 – Open House 20252024•2025- 01-14 Reviewed Survey Feedback •2025-01-14 Presented Concept Plan Scenarios •2025- 02-13 Economic Development Corporation Meeting •2025 – 02- 24 Town Council Work Session Page 7 of 280 Outreach Approach Community Engagement 3 Stakeholder Meeting When: September 2024 Where:: Town Hall Who: Property Owners Within The Small Area Online Survey Meeting Open House Meeting When: November 2024 Where: Online Where: Town Hall When: November 2024 Who: Open to Residents in Trophy Club Who: Open to Residents in Trophy Club How: One on One How: Monkey Survey How: In Person Page 8 of 280 Stakeholder Meeting 4 8 Stakeholders •Thoughtful and Integrated •Improve Circulation + Connectivity • Entertainment Space •Ideal Location + Access •Small Businesses Stakeholder Feedback Page 9 of 280 5 Online Survey 595 Responses Online Survey Feedback •Thoughtful and Integrated •Prioritize Market Demand •Ideal Location + Access •Improve Circulation + Connectivity •Community Gathering Spaces •Dining + Outdoor Seating Page 10 of 280 Open House 23 Attendees Open House Feedback •Improve Circulation + Connectivity •Strong Hospitality + Dining •Ideal Location •Community Gathering Spaces •Support 55+ Housing Page 11 of 280 7 Approach Project Phases Explore Envision Enact Execute Evaluate Page 12 of 280 8 Concept 1 11 1 7 6 5 4 8 2 3 G.2 10 9 1213 14.1 14.2 1516 17 18 G.4 G.3 G.1 11 Page 13 of 280 9 Concept 1 Land Use Building Summary Civic Space +/- 24,116 SF Urban Flats +/- 145 Units Assisted living +/- 105 Units Restaurant/ Retail/ Office +/- 71,472 SF Medical +/- 336,507 SF Hotel +/- 328 Rooms Age Restricted Living +/- 348 Units Ground Floor Retail/ Restaurant +/- 32,271 SF 1 7 5 4 8 2 3 10 9 1213 14.1 14.21516 17 18 G.4 G.3 11 6 G.1 G.2 Page 14 of 280 10 Concept 1 Mobility Network 6’ Sidewalks 12’ Multi Use Trails Page 15 of 280 11 Concept 1 Mobility Street Section Page 16 of 280 12 Concept 2 G.15 6 27 3.1 3.2 4 G.2 8 12 11 9 1 10 13 15.3 15.215.1 1416 17.1 17.21819 20 21 G.3 Page 17 of 280 13 Concept 2 Land Use Building Summary Civic Space +/- 24,116 SF Urban Flats +/- 137 Units Assisted living +/- 152 Units Restaurant/Retail +/- 86,308 SF Medical +/- 336,507 SF Hotel +/- 328 Rooms Office/ Retail +/-89,297 SF Age Restricted Living +/- 286 Units Ground Floor Retail/ Restaurant +/- 26,778 SF 6 27 3.1 3.24 8 12 11 9 1 10 13 15.3 15.215.1 1416 17.117.2 1819 20 21 5 Page 18 of 280 14 Concept 2 Mobility Network Golf Cart 12’ Multi Use Trails 6’ Sidewalks Page 19 of 280 15 Concept 2 Mobility Street Section Page 20 of 280 16 Envision Page 21 of 280 Questions Page 22 of 280 18 Old Option 1 Page 23 of 280 19 Old Option 2 Page 24 of 280 20 Market Demand •202,000 SF Of Inventory •Three Primary Centers •5.9% Vacancy Rate Or 12,000 SF •Annual Demand 14,800 SF Existing Today Page 25 of 280 TOWN COUNCIL COMMUNICATION MEETING DATE: February 24, 2025 FROM: Tammy Dixon, Town Secretary AGENDA ITEM: Consider approval of the February 10, 2025, Town Council work session and regular meeting minutes. (Tammy Dixon, Town Secretary) BACKGROUND/SUMMARY: The Town Council held a work session and regular meeting on February 10, 2025. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: N/A LEGAL REVIEW: N/A ATTACHMENTS: 1. 02.10.2025 draft minutes ACTIONS/OPTIONS: Move to approve the February 10, 2025 Town Council work session and regular meeting minutes. Page 26 of 280 Town of Trophy Club Town Council Meeting Minutes February 10, 2025, 6:00 p.m., Work Session and Regular Meeting 1 Trophy Wood Drive, Trophy Club, Texas 76262 CALL WORK SESSION TO ORDER Mayor Tiffany called the work session to order at 6:01 p.m. COUNCIL MEMBERS PRESENT Jeannette Tiffany, Mayor Steve Flynn, Mayor Pro Tem Jeff Beach, Council Member Place 2 Dennis Sheridan, Council Member Place 3 Rhylan Rowe, Council Member Place 4 COUNCIL MEMBERS ABSENT Stacey Bauer, Council Member Place 1 Council Member Place 5 (Vacant) STAFF MEMBERS PRESENT Brandon Wright, Town Manager Tammy Dixon, Town Secretary Dean Roggia, Town Attorney Jason Wise, Fire Chief Patrick Arata, Chief of Police April Duvall, Director of Finance Chase Ellis, Director of Parks and Recreation Jill Lind, Director of Communications and Marketing Matt Cox, Director of Community Development Denise Deprato, Director of Human Resources Tamara Smith, Assistant to the Town Manager WORK SESSION ITEM 1. Discussion regarding the Town Council Appointments Committee. (Brandon Wright, Town Manager & Tammy Dixon, Town Secretary) The Town Council Members discussed highlighted improvements made over the past two years, including a structured interview process, organized materials, and the inclusion of department directors in interviews. Council members emphasized the importance of maintaining a structured approach while enhancing transparency and accessibility. They agreed that all council members should have access to applications and that a standardized report should summarize subcommittee recommendations. Additionally, the Council supported holding a dedicated workshop to review subcommittee recommendations before board appointments are made at a regular meeting. While alternative options, such as Page 27 of 280 Town Council Meeting Minutes – January 13, 2025 Page 2 eliminating interviews in favor of a scoring system, were considered, the Council agreed that interviews provide valuable insight into applicants' interests and qualifications. The Town Council directed that the Town Council Rules of Procedure be updated to reflect the following recommendations: • Maintain the subcommittee process while granting flexibility to invite department directors/liaisons, board representatives, or other stakeholders to participate in interviews as non-voting participants. • Ensure all applications are accessible to the full Council, with any comments or feedback directed to the Town Manager. • Develop a standardized summary report for the subcommittee to complete, providing consistent documentation of recommendations outlining the rationale for candidate selections. • Hold a dedicated workshop for board appointments, allowing the subcommittee to present its recommendations and facilitate a thorough discussion before final appointments. ADJOURN WORK SESSION Mayor Tiffany adjourned the work session at 6:39 p.m. CALL REGULAR MEETING TO ORDER Mayor Tiffany called the regular meeting to order at 7:00 p.m. INVOCATION Pastor Barry Clingan, The Church at Trophy Lakes, delivered the invocation. PLEDGES Mayor Pro Tem Flynn led the Pledge of Allegiance to the American and Texas Flags. PUBLIC COMMENTS There were none. Page 28 of 280 Town Council Meeting Minutes – January 13, 2025 Page 3 COMMUNITY SPOTLIGHT 2. Recognition of Former Council Member LuAnne Oldham The Mayor and Town Council recognized outgoing Council Member LuAnne Oldham for her dedicated service to the community, including her leadership on both the Town Council and Planning & Zoning Commission. Council members praised her attention to detail, adaptability, and commitment to public service. She was presented with a plaque and other mementos in appreciation of her contributions. The volunteers from the Activity Center group also expressed gratitude for her unwavering support in their efforts. Outgoing Council Member LuAnne Oldham expressed her pride in the Town of Trophy Club and gratitude for the collaboration among council members, staff, and leadership in setting the town on a strong path forward. She reflected on her journey from an engaged citizen to a council member, emphasizing the importance of stepping up to create change. LuAnne commended the dedication and hard work of everyone involved in town governance and thanked them for their commitment to making a difference. 3. Proclamation - Random Acts of Kindness Month Mayor Tiffany introduced Sarah Millhorn, Student Leadership Teacher and Council Advisor at Byron Nelson High School. Student Body President McKenna Campbell, Ainsley Doyle, and Violet Holzworth presented an overview of the Acts of Kindness initiative and thanked the Town for its support. Mayor Tiffany commended their efforts, read a proclamation recognizing Random Acts of Kindness Month, and presented it to Ms. Millhorn and the Student Council members. 4. Working for You... Trophy Club a) Update from Town Council Members Council Member Sheridan announced that he recently attended a meeting regarding the TxDOT study on the U.S. Highway 377 Texas Corridor and reported that most improvements in Roanoke are complete, while the expansion from Roanoke is in the engineering and design phase but remains unfunded. He emphasized the importance of community input in the process, encouraged residents to stay informed about potential changes, and invited them to contact him with any questions. Mayor Tiffany welcomed Aaron Sather and his father, Brad Sather, to the meeting. Aaron shared his interest in understanding how a town operates and getting involved in local government. Mayor Tiffany encouraged his engagement, introduced him to town leadership, and invited him to attend future meetings to continue learning about municipal governance. Page 29 of 280 Town Council Meeting Minutes – January 13, 2025 Page 4 b) Update from Town Manager Town Manager Wright provided several updates, beginning with the pickleball court groundbreaking ceremony scheduled for February 14, 2025, at 10:00 AM at Harmony Park. The project includes the addition of six pickleball courts, with existing basketball courts being relocated. He also announced upcoming boards and commissions meetings, all held at 6:00 PM at Town Hall: • February 12 – Crime Control and Prevention District (CCPD) Meeting • February 13 – Economic Development Corporation (EDC) Meeting • February 17 – Parks and Recreation Board Meeting • February 20 – Zoning Board of Adjustments (ZBA) Meeting Lastly, he invited residents to attend Breakfast with Tiffany at Tom Thumb Starbucks on February 17 at 9:00 AM, providing an opportunity to engage with the Mayor and discuss town matters. c) Quick Civic Tip (Dean Roggia, Town Attorney) Town Attorney Roggia provided an overview of the Texas Open Meetings Act exception 551.074, which allows the governing body to enter a closed session to discuss personnel matters, including the appointment, employment, evaluation, reassignment, discipline, or dismissal of a public officer or employee. He clarified that while the full list of topics is often included in meeting notices, it does not mean all will be discussed. He also explained the legal definition of a public officer, which includes individuals given authority to exercise governmental power, such as members of the Building Standards Commission, distinguishing them from advisory bodies that do not have decision -making authority. CONSENT AGENDA 5. Consider approval of the January 13, 2025, Town Council regular meeting minutes; January 23, 2025, and January 24, 2025, Town Council Retreat meeting minutes. (Tammy Dixon, Town Secretary) 6. Consider a resolution appointing Greg Fox to the Economic Development Corporation Board. (Tammy Dixon, Town Secretary) The caption of the resolution reads as follows: RESOLUTION NO. 2025-03 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, PROVIDING FOR THE APPOINTMENT OF A MEMBER TO SERVE ON THE ECONOMIC DEVELOPMENT CORPORATION; DESIGNATING TERMS OF SERVICE; AND PROVIDING AN EFFECTIVE DATE. Page 30 of 280 Town Council Meeting Minutes – January 13, 2025 Page 5 7. Consider authorizing the Town Manager to negotiate and execute a mowing contract with TLC Landscapes for a total annual amount not to exceed $35,000 with four 1-year renewal options with up to 5% annual increases. (Matt Cox, Director of Community Development) 8. Consider an ordinance amending subsection (i), Annual Capital Improvement and Maintenance Charge, of Section A1.014, Water and Wastewater Fees for Public Improvement District No.1, within Appendix A, Fee Schedule, of the Trophy Club Code of Ordinances, to adopt a monthly surcharge for PID residents. (April Duvall, Director of Finance) The caption of the ordinance reads as follows: ORDINANCE NO. 2025-07 AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS AMENDING SUBSECTION (i), "ANNUAL CAPITAL IMPROVEMENTS AND MAINTENANCE CHARGE," OF SECTION A1.014, "WATER AND WASTEWATER FEES FOR PUBLIC IMPROVEMENT DISTRICT NO. 1," WITHIN APPENDIX A, "FEE SCHEDULE," OF THE CODE OF ORDINANCES, TOWN OF TROPHY CLUB, TEXAS, T O ADOPT A MONTHLY SURCHARGE APPLICABLE TO CONNECTIONS IN THE TROPHY CLUB PUBLIC IMPROVEMENT DISTRICT NO. 1 IN ORDER TO PAY THE PID PORTION OF MUD1 OPERATIONS AND MAINTENANCE BUDGET AND DEBT FOR CALENDAR YEAR 2025; PROVIDING A SAVINGS AND REPEALER CLAUSE; P ROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; PROVIDING 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. 9. Consider accepting the Third Quarter Investment Report for Fiscal Year 2024. (April Duvall, Director of Finance) 10. Consider accepting the Fourth Quarter Investment Report for Fiscal Year 2024. (April Duvall, Director of Finance) Council Member Sheridan moved to approve Consent Items 5-10. Council Member Beach seconded the motion. VOTE ON MOTION AYES: Beach, Flynn, Sheridan, Tiffany, Rowe NAYES: None ABSENT: Bauer VOTE: 5-0-1 INDIVIDUAL ITEMS 11. Consider accepting the Trophy Club Police Department's 2024 Racial Profiling Report. (Patrick Arata, Police Chief) Page 31 of 280 Town Council Meeting Minutes – January 13, 2025 Page 6 Chief Arata gave a presentation on the 2024 Racial Profiling Report and answered questions from the Town Council. Councilmember Rowe moved to accept the Trophy Club Police Department’s 2024 Racial Profiling Report. Mayor Pro Tem Flynn seconded the motion. VOTE ON MOTION AYES: Beach, Flynn, Sheridan, Tiffany, Rowe NAYES: None ABSENT: Bauer VOTE: 5-0-1 12. Consider designating one Council Member to serve on the Town Council Appointments Committee tasked with making recommendations to the full Council regarding appointments to all Boards, Commissions, and Corporations. (Tammy Dixon, Town Secretary). Mayor Tiffany nominated Stacey Bauer to serve on the Town Council Appointments Committee. Council Member Beach seconded the motion. VOTE ON MOTION AYES: Beach, Flynn, Sheridan, Tiffany, Rowe NAYES: None ABSENT: Bauer VOTE: 5-0-1 ADJOUNMENT Mayor Tiffany adjourned the Town Council meeting at 7:39 p.m. ____________________________ Jeannette Tiffany, Mayor Attest: _______________________________ Tammy Dixon, Town Secretary Page 32 of 280 TOWN COUNCIL COMMUNICATION MEETING DATE: February 24, 2025 FROM: Tammy Dixon, Town Secretary AGENDA ITEM: Consider a resolution repealing Resolution 2025-02; adopting updated Town Council Rules of Procedure; providing for amendments to Section 9, "Boards and Commissions," subsection 9.1. c., "Application Review/Appointments." (Tammy Dixon, Town Secretary) BACKGROUND/SUMMARY: The purpose of this agenda item is to approve a resolution repealing Resolution 2025-02 and adopting an updated Town Council Rules of Procedure, incorporating amendments to the Appointments Committee as discussed during the February 10, 2025, Town Council Workshop. The Town Council directed the following updates to the Rules of Procedure: • Subcommittee Process: Maintain the subcommittee interview structure while allowing flexibility to invite department directors, board representatives, or other stakeholders to participate as non-voting participants. • Application Access: Ensure all Council Members have access to board and commission applications, with comments and feedback directed to the Town Manager. • Standardized Summary Report: Implement a standardized report for subcommittee recommendations, providing consistent documentation of candidate selections and rationale. • Dedicated Workshop for Appointments: Establish a dedicated workshop for board appointments, allowing the subcommittee to present its recommendations and facilitate discussion before final appointments at a regular meeting. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: There is no financial impact associated with this agenda item. LEGAL REVIEW: Town Attorney, Dean Roggia, has reviewed the resolution as to form and legality. ATTACHMENTS: 1. Resolution 2. Redline Changes Page 33 of 280 ACTIONS/OPTIONS: Staff recommends that the Town Council move to approve the resolution repealing Resolution 2025-02; adopting updated Town Council Rules of Procedure; providing for amendments to Section 9, "Boards and Commissions," subsection 9.1. c., "Application Review/Appointments." Page 34 of 280 TOWN OF TROPHY CLUB, TEXAS RESOLUTION NO. 2025-XX A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, REPEALING RESOLUTION 2025-02; ADOPTING UPDATED TOWN COUNCIL RULES OF PROCEDURE; PROVIDING FOR AMENDMENTS TO SECTION 9, “BOARDS AND COMMISSIONS,” SUBSECTION 9.1.C, “APPLICATION REVIEW/ APPOINTMENTS”; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town of Trophy Club is a home rule municipality acting under its charter adopted by the electorate pursuant to Article XI, Section 5, of the Texas Constitution and Chapter 9 of the Texas Local Government Code; and WHEREAS, Section 3.11 of the Town Charter grants the Town Council the authority to determine its own rules of procedure; and WHEREAS, the Town Council previously adopted Resolution 2025-02, establishing the Town Council Rules of Procedure; and WHEREAS, the Town Council has determined that amendments to Section 9, “Boards and Commissions,” Subsection 9.1(c), “Application Review/Appointments” of the Town Council Rules of Procedure are necessary to improve efficiency, transparency, and governance; and WHEREAS, the Town Council desires to repeal Resolution No. 2025-02 in its entirety and adopt revised Town Council Rules of Procedure as set forth in Exhibit A attached hereto; NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, THAT: Section 1. The facts and recitals set forth in the preamble of this Resolution are hereby found to be true and correct. Section 2. Resolution 2025-02 is hereby repealed in its entirety, and all previously adopted Town Council Rules of Procedure in conflict with Exhibit A are hereby repealed to the extent of such conflict. Page 35 of 280 RESOLUTION 2025-XX PAGE 2 Section 3. The Town Council hereby adopts the revised Town Council Rules of Procedure, attached hereto as Exhibit A. These updated Town Council Rules of Procedure shall govern the conduct of Town Council meetings and related proceedings, incorporating amendments to Section 9.1(c) to enhance the appointment process for boards and commissions. Section 4. This Resolution shall take effect from and after its date of passage in accordance with law. PASSED and APPROVED by the Town Council of the Town of Trophy Club, Texas, on this 24th day of February 2025. ___________________________ Jeannette Tiffany, Mayor ATTEST: _______________________________ Tammy Dixon, Town Secretary APPROVED AS TO FORM: _______________________________ Dean Roggia, Town Attorney Page 36 of 280 RESOLUTION 2025-XX PAGE 3 EXHIBIT A TOWN OF TROPHY CLUB TOWN COUNCIL RULES OF PROCEDURE Page 37 of 280 TOWN COUNCIL RULES OF PROCEDURE Approved by Resolution 2025-XX February 24, 2025 Page 38 of 280 Page 39 of 280 TABLE OF CONTENTS 1. AUTHORITY 1.1 CHARTER ................................................................................................................... 1 1.2 COUNCIL MEMBER ELECTION/APPOINTMENTS ......................................... 1 1.3 MAYOR TO ACT AS COUNCIL CEREMONIAL REPRESENTATIVE ........... 1 1.4 COUNCIL MEMBER PARTICIPATION IN COMMUNITY ACTIVITIES ...... 2 2. COUNCIL MEETINGS 2.1 REGULAR MEETINGS .......................................................................................... 2 2.2 SPECIAL MEETINGS AND EMERGENCY MEETINGS .................................. 2 2.3 EXECUTIVE SESSIONS ......................................................................................... 2 2.4 NOTICE OF MEETINGS ........................................................................................ 3 2.5 QUORUM .................................................................................................................. 3 2.6 VIDEO CONFERENCE PATICIPATION ............................................................ 3 2.7 PRESIDING OFFICER ............................................................................................ 5 2.8 APPOINTED OFFICIALS ...................................................................................... 6 2.9 ATTENDANCE BY THE PUBLIC ......................................................................... 6 2.10 MINUTES .................................................................................................................. 6 2.11 ESTABLISHING THE TOWN COUNCIL MEETING AGENDA ..................... 6 3. ORDER OF BUSINESS 3.1 GENERAL ORDER ................................................................................................. 7 3.2 ORDINANCES AND RESOLUTIONS .................................................................. 7 3.3 NUMBERING AND INDEXING OF AGENDA ITEMS ...................................... 7 3.4 PUBLIC RECOGNITION/COMMUNITY SPOTLIGHT .................................... 7 3.5 ITEMS OF COMMUNITY INTEREST/COUNCIL COMMUNICATIONS .... 8 3.6 CONSENT AGENDA ............................................................................................... 8 4. RULES OF CONDUCT 4.1 GENERAL PROCEDURE ....................................................................................... 8 4.2 PARLIAMENTARY PROCEDURES .................................................................... 8 4.3 DAIS SEATING ........................................................................................................ 8 4.4 AUTHORITY OF PRESIDING OFFICER ........................................................... 8 4.5 PRESIDING OFFICER TO FACILITATE COUNCIL MEETINGS ................ 9 4.6 COUNCIL DELIBERATION AND ORDER OF SPEAKERS ............................ 9 4.7 LIMIT DELIBERATIONS TO ITEM AT HAND ................................................. 9 4.8 OBTAINING THE FLOOR ..................................................................................... 9 4.9 MOTIONS ................................................................................................................. 9 4.10 PROCEDURES FOR AGENDA ITEM DISCUSSIONS/MOTIONS .................... 9 4.11 VOTING .................................................................................................................. 12 4.12 NON-OBSERVANCE OF RULE .......................................................................... 13 5. PUBLIC HEARINGS 5.1 GENERAL PROCEDURE ..................................................................................... 13 5.2 CONTINUANCE OF HEARINGS ....................................................................... 14 Page 40 of 280 5.3 PUBLIC COMMENT AT HEARINGS ................................................................ 14 5.4 COMMUNICATIONS AND PETITIONS ........................................................... 15 6. ADDRESSING THE TOWN COUNCIL 6.1 STAFF PRESENTATIONS .................................................................................... 15 6.2 ORAL PRESENTATIONS BY MEMBERS OF THE PUBLIC ......................... 15 6.3 PUBLIC COMMENTS AGENDA ITEM .............................................................. 15 6.4 RIGHT TO SPEAK ........................................................................................................... 16 6.5 PUBLIC MEETING APPEARANCE CARDS ..................................................... 16 6.6 REPETITIOUS COMMENTS ............................................................................... 16 6.7 WAIVER OF RULES ............................................................................................. 17 6.8 NON-EXCLUSIVE RULES ................................................................................... 17 7. COUNCIL MEMBER TRAINING AND PROFESSIONAL DEVELOPMENT 7.1 TOWN COUNCIL ORIENTATION ................................................................... 17 7.2 TOWN COUNCIL TRAVEL, TRAINING, MEMBERSHIPS, AND CLOTHING ALLOCATION POLICY ............................................................... 17 8. TOWN COUNCIL STAFF RELATIONS AND ADMINISTRATIVE SUPPORT 8.1 COMMUNICATION WITH STAFF .................................................................... 18 8.2 AGENDA QUESTIONS ......................................................................................... 18 8.3 PROBLEM RESOLUTION ................................................................................... 19 8.4 STAFF CONDUCT ................................................................................................. 19 8.5 MAIL ................................................................................................................................... 19 8.6 TOWN COUNCIL CORRESPONDENCE .......................................................... 20 8.7 CLERICAL SUPPORT .......................................................................................... 20 8.8 TOWN COUNCIL EVENT COORDINATION .................................................. 20 8.9 REQUESTS FOR RESEARCH OR INFORMATION ....................................... 21 8.10 TOWN COUNCIL NOTIFICATION OF SIGNIFICANT INCIDENTS .......... 21 9. BOARDS AND COMMISSIONS 9.1 BOARD AND COMMISSION APPOINTMENTS/REMOVALS ..................... 21 9.2 BOARD, COMMITTEE, AND COMMISSION TRAINING ............................. 23 9.3 CREATION OF AD HOC COMMITTEE/TASK FORCE ................................ 23 10. PROCEDURES ADMINISTRATION 10.1 BIENNIAL REVIEW OF TOWN COUNCIL RULES OF PROCEDURE ....... 24 10.2 ADHERENCE TO PROCEDURES ....................................................................... 24 10.3 TOWN ATTORNEY AS PROCEDURE ADVISOR ........................................... 24 10.4 APPLICABILITY OF RULES OF PROCEDURE .............................................. 24 Page 41 of 280 1 1. AUTHORITY 1.1 CHARTER The Town of Trophy Club Charter, Article III; Section 3.11 provides that the Town Council shall determine its own rules of procedure. These Rules of Procedure shall be in effect upon adoption by the Town Council and until such time as amended, suspended, or new rules are adopted by the Town Council. 1.2 COUNCIL MEMBER ELECTION/APPOINTMENTS a. Election of Mayor Pro Tem Pursuant to Article III, Section 3.07 of the Town Charter, the Town Council shall elect one of its members to serve as Mayor Pro Tem at its first meeting after election of council members. Upon election, the Mayor Pro Tem shall perform all the duties of the Mayor in the absence or disability of the Mayor. b. Council Committees At the first Town Council meeting in June, the Mayor may present recommendations for the members of the following Council Subcommittees and open the floor for additional nominations, all subject to the approval of the Town Council. Town Council Members may propose changes or make their own nominations for the following Council Subcommittees. Appointment of members to all committees of the Town, inclusive of Council Subcommittees, is exclusively vested in the Council. • Appointments Committee • Budget Oversight Committee • Municipal Utility District No. 1 Coordination Committee 1.3 MAYOR TO ACT AS COUNCIL CEREMONIAL REPRESENTATIVE Pursuant to the Town Charter Article III; Section 3.06, the Mayor has been delegated the responsibility to act as the Town Council’s representative for all ceremonial purposes. In the Mayor’s absence or disability, the Mayor Pro Tem assumes this responsibility. In both the Mayor’s and Mayor Pro Tem’s absence or disability, the Mayor will request another Council Member to assume this responsibility. If the Mayor is unable to request another Council Member to assume this responsibility, the Town Council may select a Council Member to assume this responsibility by a majority vote of the Town Council. Page 42 of 280 2 1.4 COUNCIL MEMBER PARTICIPATION IN COMMUNITY ACTIVITIES From time to time, the Mayor or Council Members may choose to participate in community activities, committees, events and task forces. When the Mayor or a Council Member participates in these types of activities, he/she is assumed to be acting as a member of the general public rather than acting on behalf of the Town Council. Acting or participating on behalf of the Town Council is limited to those instances when the Town Council has formally designated the Mayor or Council Member as its representative for the matter. As specified in Section 1.3, the Mayor is delegated to serve as the Town Council’s representative for ceremonial purposes. 2. COUNCIL MEETINGS 2.1 REGULAR MEETINGS Consistent with Charter Section 3.09, the Council shall hold at least two (2) regular meetings a month for at least seven (7) months and a minimum of one meeting during each of the other five (5) months at a time to be fixed by Council for such regular meetings. Council may hold as many other meetings as may be necessary for the transaction of the business of the Town. All regular meetings shall be held at Town Hall or at such other places within town limits as will permit the attendance of the general public. All meetings will be held in accordance with open meeting laws of the State of Texas. 2.2 SPECIAL MEETINGS AND EMERGENCY MEETINGS Consistent with Charter Section 3.10, special meetings may be called at any time by the Mayor or by three (3) members of the Town Council. The Town Secretary shall post notice thereof as provided by State law. In case of emergency or urgent public necessity, which shall be expressed in the notice of the meeting, an emergency meeting may be called by the Mayor or by three (3) members of the Town Council, and it shall be sufficient if the notice is posted one (1) hour before the meeting is convened, or as may be required by the Texas Open Meetings Act. Diligent effort to notify all Council Members shall be made prior to the emergency meeting. (Texas Gov’t Code, Sec. 551.045) 2.3 EXECUTIVE SESSIONS The Town Council may meet in Executive Session during any workshop, regular, or special meeting, or anytime otherwise authorized by State law, to consider or hear any matter which is authorized by State law to be heard or considered in Executive Session. a. The specific section of the Texas Open Meetings Act authorized for the executive session and the subject matter for consideration shall be announced by the Presiding Officer or announced by the Town Secretary as instructed by the Presiding Officer, in an open meeting before such session is held. Page 43 of 280 3 b. Council Members may not reveal the nature of discussion from a closed session unless required by State law, required by a court of competent jurisdiction, or unless made in connection with any investigation or proceeding regarding whether there has been a violation of the Town Code of Ethics and Conduct. Except as provided above, disclosure of the discussion from a closed session is a violation of the Town Code of Ethics and Conduct. (Code of Ordnances, Section 1.05.004 (3)) 2.4 NOTICE OF MEETINGS Notice of meetings and the agenda for all Town Council meetings shall be posted by the Town Secretary on the Town’s official bulletin board and website pursuant to the requirements of the Texas Open Meetings Act. 2.5 QUORUM Charter Section 3.12 states a majority of the Council shall constitute a quorum to do business. Except as otherwise specifically provided in the Charter or as provided by law, four (4) members of Council shall constitute a quorum for the purpose of transaction of business and no action of the Council shall be valid or binding unless adopted by the affirmative vote of four (4) or more members of the Council, or as required by State law or the Town’s Charter. 2.6 VIDEO CONFERENCE PARTICIPATION Council Members may participate in Town Council meetings via videoconference in accordance with Section 551.127 of the Texas Open Meetings Act. The following conditions shall apply: a. Quorum and Participation Limits A quorum of the Town Council must be physically present at the meeting location posted on the agenda. No more than two (2) Council Members may participate in a single meeting via videoconference, granted on a first-come, first-served basis. The Presiding Officer must be physically present where the quorum of the meeting is located. Remote participation shall be limited to open or closed meetings held at Town Hall where sufficient technology is available to conduct remote participation in accordance with State law. b. Notification Requirements Council Members wishing to attend via videoconference must notify the Town Secretary no later than noon on the Wednesday prior to the meeting; or as soon as practical. Page 44 of 280 4 • The following statement will be placed on all Council Agendas when videoconference is authorized: “Pursuant to Texas Government Code Section 551.127, one or more members of the Town Council may participate in this meeting by videoconference call. A quorum of the Town Council will be present at the physical location of the meeting.” In case of a personal emergency, Council Members may request videoconference participation by notifying the Mayor and Town Manager no later than 5:00 p.m. on the business day prior to the meeting. c. Technology and Public Access The technology used must ensure two-way audio and video communication, enabling all participants to be audible and visible to each other and to the public during open sessions of the meeting. Members participating remotely are responsible for ensuring they have the necessary equipment and a stable internet connection to establish and maintain their participation throughout the meeting. If a remote participant becomes inaudible or invisible to those at the physical meeting location, they will be considered absent for the portion of the meeting during which the connection is lost. The Town Council meeting will proceed as scheduled and will not be paused or adjourned due to technical or technology issues affecting the participation of remotely attending Council Members. d. Videoconference Etiquette During videoconference attendance, the Council Member’s face must be clearly visible, and audio must be clear while speaking. e. Executive Session Confidentiality For executive sessions or closed meetings, Council Members participating remotely must take appropriate measures to ensure that audio and video communications are inaccessible to unauthorized persons to preserve confidentiality and attorney-client privilege. f. Frequency of Remote Participation Remote participation is not intended to be a regular occurrence for Council Members. Council Members are strongly encouraged to attend all Town Council meetings in person. A Council Member desiring to attend more than two (2) meetings remotely in any calendar year must request approval for remote participation from the full Town Council. A Council Member requesting Town Council approval to attend three (3) or more Page 45 of 280 5 Town Council meetings remotely in any calendar year must provide “good cause” justification for the request. Below are examples of “good cause” justifications, which are intended to be more than mere inconvenience or preference for attending remotely. • Examples of “good cause” are: • Sudden illness or hospitalization, • Conflict related to employment, and • Conflict related to planned travel. g. Eligibility for Remote Attendance: The Town Manager may request permission from the Presiding Officer for a staff member to attend remotely when that member’s presence is critical to a purpose at the meeting. Consistent with the regulations and practices outlined in this Section 2.6, members of the Planning & Zoning Commission, Economic Development Corporation Board, Crime Control & Prevention District Board, Zoning Board of Adjustment, and Building Standards Commission may participate remotely in their respective meetings. Remote participation is not allowed for members of all other boards and commissions. 2.7 PRESIDING OFFICER a. Designation Consistent with Charter Section 3.06, the Mayor shall preside at all meetings of the Council. The Mayor may participate in the discussion of all matters coming before the Council and shall have a vote on all matters before the Council. In the absence or disability of the Mayor, the Mayor Pro-Tem shall preside. In the absence or disability of both the Mayor and the Mayor Pro-Tem, the Town Council shall elect a presiding officer. b. Call to Order The meetings of the Town Council shall be called to order by the Presiding Officer. In the absence of both the Mayor and the Mayor Pro-Tem, the meeting shall be called to order by the Town Secretary. c. Preservation of Order The Presiding Officer shall have the authority to preserve order at all Town Council meetings, to enforce the rules of the Town Council, and to determine the order of business under the rules of the Council. Page 46 of 280 6 2.8 APPOINTED OFFICIALS The Town Manager shall attend all meetings of the Town Council unless excused by the Mayor or Town Council and shall have the right to participate in all discussions. The Town Attorney shall attend all meetings of the Town Council unless excused by the Mayor or Town Council, and shall, upon request, give opinion, either written or oral, on questions of law. The Town Attorney shall also serve as the Town Council’s parliamentarian. The Town Secretary shall attend all meetings of the Town Council unless excused by the Mayor or Town Council and shall keep the official minutes and perform such other duties as may be requested by the Town Council. 2.9 ATTENDANCE BY THE PUBLIC All meetings of the Town Council shall be open to the public in accordance with the terms of provisions of the Texas Open Meetings Act, except for the Executive Session or closed meetings as allowed by State law. Citizens and other visitors attending Town Council meetings shall observe the same rules of propriety, decorum, and good conduct applicable to members of the Town Council. 2.10 MINUTES At a minimum, the minutes shall include the members present, state the subject of each deliberation, and indicate each vote, decision, or other action taken. The minutes shall also indicate how each member voted on each matter. (Texas Gov’t Code, Sec. 551.021) a. Town Council Approval of Minutes Minutes of meetings are generally submitted to the Town Council for approval at the next regularly scheduled meeting. The Mayor and Council Members present shall be required to vote on the approval of the minutes, even if absent at the meeting for which the minutes pertain. 2.11 ESTABLISHING THE TOWN COUNCIL MEETING AGENDA The Town Manager shall establish a preliminary Town Council meeting agenda based on the policy direction of the Mayor and Town Council and specific items of business that require action by the Town Council. The Town Manager shall review the preliminary agenda with the Mayor prior to finalizing the final meeting agenda. The Town Secretary shall prepare the final meeting agenda, which shall be publicly posted in accordance with the Texas Open Meetings Act. Any item requested by two (2) Council Members, or by the Mayor, or by the Town Manager shall be placed on the agenda by the Town Secretary. (Town Charter, Section 3.11 (b)) Page 47 of 280 7 The Town Manager may discuss with the requesting Council Member the delay of the agenda item. In consultation with the Town Manager and/or Mayor, the request will be placed on an agenda as soon as possible. Such a determination will be communicated to the requesting Council Member. 3. ORDER OF BUSINESS 3.1 GENERAL ORDER Town Council meetings will be generally conducted in the following order, unless otherwise specified or removed. An Executive Session may be held at any time during a work session, regular, or special called meeting consistent with applicable State law. WORK SESSION AGENDA CALL TO ORDER AND ANNOUNCE A QUORUM PUBLIC COMMENTS WORK SESSION ITEMS ADJOURN WORK SESSION REGULAR MEETING AGENDA CALL TO ORDER AND ANNOUNCE A QUORUM INVOCATION PLEDGE OF ALLEGIANCE PUBLIC COMMENTS COMMUNITY SPOTLIGHT CONSENT AGENDA INDIVIDUAL ITEMS (includes Public Hearings, if any) EXECUTIVE SESSION (as needed) ADJOURNMENT 3.2 ORDINANCES AND RESOLUTIONS All ordinances and resolutions shall be reviewed and approved as to form and legality by the Town Attorney prior to being placed on an agenda for consideration. 3.3 NUMBERING AND INDEXING OF AGENDA ITEMS All items of any nature shall be numbered consecutively for purposes of consideration on the agenda. Upon passage, the Town Secretary shall separately index all ordinances and resolutions. 3.4 PUBLIC RECOGNITION/COMMUNITY SPOTLIGHT All special presentations and announcements will be calendared and coordinated through the Town Secretary and Mayor. A period of time, typically not to exceed five (5) minutes, will be provided for each recognition. Page 48 of 280 8 3.5 ITEMS OF COMMUNITY INTEREST / COUNCIL COMMUNICATIONS Members of the Town Council have the opportunity to briefly comment and notify others of items of community interests pursuant to Texas Gov’t Code Sec. 551.0415, which may include expressions of thanks, congratulations or condolences; holiday schedule information; an honorary or salutary recognition of a public official, public employee, or other citizen; information about a Town-organized or sponsored event or other social, ceremonial, or community event; announcements involving an imminent threat to the public health and safety of the citizens that has arisen after the posting of the agenda. 3.6 CONSENT AGENDA The Consent Agenda shall contain routine, non-controversial items that require Town Council action but need little or no further Town Council deliberation. Agenda items may be removed from the Consent Agenda at the request of the Mayor, a Council Member, or Town Manager and will be considered after approval of the remainder of the Consent Agenda. The requested item removed from the Consent Agenda will then be considered for a separate vote of the Town Council. 4. RULES OF CONDUCT 4.1 GENERAL PROCEDURE These Rules of Procedure and the following rules of conduct in this Section 4, consistent with the Town Charter and any applicable Town ordinance, statute or other legal requirement, shall govern the proceedings of the Town Council. The Town Council Rules of Procedure shall be interpreted and read harmoniously with the Town Charter and any applicable Town ordinance, statute or other legal requirement. The Town Charter and any applicable Town ordinance, statute or other legal requirement shall control in the event of a conflict with the Town Council Rules of Procedure. 4.2 PARLIAMENTARY PROCEDURES Robert’s Rules of Order Newly Revised, as amended by the Council, shall generally guide the proceedings of the Town Council. 4.3 DAIS SEATING The Mayor shall be seated at the center of the dais, with the Mayor Pro Tem seated immediately to the Mayor’s right. The remaining Council Members will be seated by Place number, one through six from left to right, as viewed from the audience. 4.4 AUTHORITY OF THE PRESIDING OFFICER Subject to appeal to the full Town Council, the Presiding Officer shall have the authority Page 49 of 280 9 to prevent the misuse of motions, the abuse of any privilege, or the obstruction of the business of the Town Council by ruling any such matter out of order. In so ruling, the Presiding Officer shall be courteous and fair and should presume that the moving party is acting in good faith. Any member of the Town Council may move to require enforcement of the rules, and the affirmative vote of a majority of the Town Council shall require the Presiding Officer to act. 4.5 PRESIDING OFFICER TO FACILITATE COUNCIL MEETINGS In the role of facilitator, the Presiding Officer will assist the Town Council in focusing on agenda discussions and deliberations. 4.6 COUNCIL DELIBERATION AND ORDER OF SPEAKERS The Presiding Officer has been delegated the responsibility to control the debate and the order of speakers. Speakers will generally be called upon in the order of the request to speak. With the concurrence of the Presiding Officer, a Council Member holding the floor may address a question to another Council Member and that Council Member may respond while the floor is still held by the Council Member asking the question. A Council Member may opt not to answer a question while another Council Member has the floor. 4.7 LIMIT DELIBERATIONS TO ITEM AT HAND Council Members will limit their comments to the subject matter, time, or motion being currently considered by the Town Council. 4.8 OBTAINING THE FLOOR Any member of the Town Council wishing to speak must first obtain the floor by being recognized by the Presiding Officer. The Presiding Officer must recognize any Council Member who seeks the floor when appropriately entitled to do so. 4.9 MOTIONS Motions may be made by any member of the Town Council, including the Presiding Officer, provided that before the Presiding Officer offers a motion, the opportunity for making a motion should be offered to other members of the Town Council. Any member of the Town Council, other than the person offering the motion, may second a motion. 4.10 PROCEDURES FOR AGENDA ITEM DISCUSSIONS/MOTIONS The following is the general procedure for agenda item discussions and making motions: a. The Presiding Officer or, if requested, the Town Secretary reads the agenda item. b. Staff presents its report to the Town Council. Page 50 of 280 10 c. The applicant or vendor, if applicable, may give a presentation and answer questions from the Town Council. d. Members of the public are provided the opportunity to ask questions or make comments germane to the agenda item. Individuals will be requested to state their name and address for the record. e. The Town Council deliberates on the issue, which may include asking questions of staff and, if applicable, the applicant or vendor. The Town Council may also respond to related questions posed by the public, applicant, or vendor, or may direct staff to respond. f. Following deliberation, the Presiding Officer calls for a motion. Once the motion is made and seconded, the Council may engage in further discussion. g. At the Presiding Officer’s discretion, additional public comment germane to the agenda item may be invited after a motion has been made. h. Once discussion is complete, the Presiding Officer calls for a vote. No further discussion will be allowed unless Council Members wish to explain their vote. Council Members may word motions in any common manner provided such motions and intended action are clear. The Presiding Officer may confirm that each of the Council Members understand the motion prior to calling for a vote on the motion. When a motion is on the floor and an amendment is offered, the amendment should be acted upon prior to acting on the main motion. No motion of a subject different from that under consideration shall be admitted as an amendment. A motion to amend an amendment shall be in order, but one to amend an amendment to an amendment shall not be in order. Action shall be taken on the amended amendment prior to any other action to further amend the original motion. The following are examples of possible motions: MOTION TO APPROVE OR DENY A motion to approve or deny is a proposal to take a specific action. The maker of the motion may state, “I make a motion to approve/deny Agenda Item #” or may state the recommended motion (under state law, certain motions require specific language in which case staff will provide the specific motion in the packet that the specific language must be used), or such person may state the agenda caption although it is not necessary. A failed vote to approve shall result in the agenda item being denied. Page 51 of 280 11 MOTION TO APPROVE WITH AMENDMENTS A motion to approve a specific action may include amendments recommended by a board, Town Attorney, another Council Member, or staff. The maker of the motion may state, “I make a motion to approve Agenda Item # with the following amendment(s)…” or state recommended motion or the agenda caption with the amendment included. MOTION FOR RECONSIDERATION A motion for reconsideration indicates a Council Member wants the Town Council to reconsider a prior action of the Town Council and if successful, for the Town Council to consider taking different action. A motion to reconsider may be made at the same meeting or at the next succeeding meeting following the relevant Town Council action, provided the reconsideration request complies with the requirements of the Texas Open Meetings Act and applicable law. If the motion to reconsider a prior action is not made at the same meeting, such motion and the related agenda item must be posted on the agenda for the meeting at which the motion is to be reconsidered. The maker of the motion may state: “I make a motion to reconsider Agenda Item #” or may state the full agenda caption. If that motion fails, then the matter is finally concluded. If the motion to reconsider passes, then a motion is in order for the different action. A motion for reconsideration may only be made by a Council Member who voted with the majority of the Town Council on the action proposed to be reconsidered by the Town Council. Any member of the Town Council may second a motion for reconsideration. MOTION TO ADJOURN If the Town Council has reached the end of the agenda, no motion is required. The Presiding Officer can declare the meeting adjourned. A motion to adjourn may also be made during the meeting. The maker of the motion may state, “I make a motion to adjourn the meeting.” The motion requires a second and is not debatable. If the motion passes by majority vote, the meeting is adjourned. WITHDRAWAL OF MOTION A withdrawal of a motion indicates a motion may be withdrawn or modified by the Council Member who originally made the motion at any time prior to its passage. If a motion is withdrawn, the Council Member who originally made the motion, or another Council Member, may then make a motion requiring to be seconded by another Council Member. MOTION TO CONTINUE A PUBLIC HEARING The Town Council may continue a public hearing to a date time certain unless State law provides otherwise. The maker of the motion may state, “I make a motion to continue the public hearing to xxx date at xxx time”. This motion will prevent the Town from incurring the cost of re- advertising or publishing notice of the public hearing in the newspaper. Page 52 of 280 12 MOTION TO REFER OR POSTPONE/TABLE The Town Council may desire to continue discussion of an agenda item at a future meeting, may require the Town staff to provide further information, or require the matter to be reconsidered by an applicable board or commission. In such event the Town Council may postpone or table consideration of the agenda item to a date time certain or subsequent Council Meeting (or for example until such time as Town staff can provide the requested information) or refer the matter back to the applicable board or commission to reconsider the agenda item. 4.11 VOTING Abstention a. Pursuant to Section 3.20 of the Town Charter, if a Council Member abstains because of a legal conflict of interest, such member is not counted as present for quorum purposes and is not deemed to be “voting” for purposes of determining whether there has been a “majority vote of those voting and present.” b. When the Mayor or a Council Member abstains because of a legal conflict of interest, the Mayor or such Council Member must file an affidavit with the Town Secretary stating the nature and extent of the conflict before the agenda item is announced by the Mayor. The Mayor or Town Secretary shall briefly state, on the record, the nature of the conflict of the Council Member. State law requires the inclusion of this information in the public record. A Council Member with a legal conflict of interest shall excuse themselves from the dais for that portion of the Council meeting and may return once the Council has completed action on the agenda item. Tie Votes A tie vote results in a lost motion. In such an instance, any member of the Town Council may offer a motion for further action. Per Section 3.12 of the Town Charter, except as otherwise specifically provided by the Charter or by law, no action of the Council shall be valid or binding unless adopted by the affirmative vote of four (4) or more members of the Council, or as otherwise required by State law or the Charter. Charter or Statute Voting Requirements Per the Town Charter, actions taken by the Town Council require the affirmative vote of four (4) or more Council Members to be valid and binding, unless State law specifies differently. Provided below are items that require more than four (4) affirmative votes or more than a simple majority of Council Members. Items listed herein are not intended to be an exhaustive list; the Town Attorney shall provide notice to the Town Council when the Council is taking action on such an item. Page 53 of 280 13 a. Charter Amendment – Two-thirds Vote An Ordinance submitting a proposed Charter amendment must be adopted by a two- thirds vote of the entire Town Council, except when an amendment is otherwise requested by petition pursuant to Texas Local Gov’t Code Sec. 9.004. (Texas Local Gov’t Code, Sec. 9.002(a), Texas constitution Article XI, Section 5) b. Protested Changes in Zoning Ordinance – Three-fourths Vote If a proposed change to a zoning regulation or boundary is protested by owners of twenty percent or more of the area of the lots or land included in such proposed change, or of the area of the lots or land immediately adjoining the area covered by the proposed change and extending 200 feet there from in accordance with Texas Local Gov’t Code Ch. 211, as amended, the affirmative vote of at least three-fourths of the entire Town Council is required for the proposed change to take effect. (Texas Local Gov’t Code, Sec. 211.006(d)) An affirmative vote of at least three-fourths of the entire Town Council is required to overrule a recommendation of the Planning and Zoning Commission that a proposed amendment, supplement, or change to a zoning be denied. (Town Ordinance, Sec. 14.02.403 (b)(3)) If a Council Member has abstained because of a legal conflict of interest and filed the required affidavit, the number of the members of full Town Council counted present and voting is reduced by the number of such conflicted Council Members. c. Canvassing an Election - Two (2) members of the Town Council constitute a quorum for purposes of canvassing an election. (Texas Election Code Sec. 67.004) 4.12 NON-OBSERVANCE OF RULE Rules adopted to expedite and facilitate the transaction of the business of the Town Council in an orderly fashion shall be deemed to be procedural only, and the failure to strictly observe any such rules shall not affect the jurisdiction of, or invalidate any action taken by, the Town Council. 5. PUBLIC HEARINGS 5.1 GENERAL PROCEDURE A public hearing will be conducted separately from Town Council consideration of related ordinances, resolutions, or other motions. The public hearing will allow for staff presentations, applicant input, and public comments. Following a public hearing, the Town Council will have separate consideration of the related agenda item (i.e. consideration of the ordinance or resolution), when applicable, following the procedures outlined under Section 4.10. The following are general guidelines to conduct the public hearing. Page 54 of 280 14 a. The Presiding Officer opens the Public Hearing. b. Staff presents its report. c. The applicant or appellant has the opportunity to present comments, testimony, or arguments. The applicant or appellant shall have a total of fifteen (15) minutes for a presentation when recognized by the Presiding Officer. d. Members of the public are provided the opportunity to make comments germane to the public hearing as outlined in Section 5.3. e. The Presiding Officer closes the Public Hearing. 5.2 CONTINUANCE OF HEARINGS Any Public Hearing being held by the Town Council may by motion, be continued to a subsequent meeting date and time certain. 5.3 PUBLIC COMMENT AT HEARINGS When a matter for Public Hearing comes before the Town Council, the Presiding Officer shall inquire if there is anyone present who wishes to speak or present evidence regarding the matter. A Public Hearing, no matter what the subject matter, is not a question-and-answer period. Speakers must address their comments to the Town Council. Council Members should not address members of the public during a Public Hearing. a. Public Member Request to Speak Any person desiring to speak at a Public Hearing scheduled on the agenda is requested to complete a Public Meeting Appearance Card prior to the matter being reached and present it to the Town Secretary. Upon being recognized by the Presiding Officer, the person may speak or present evidence relevant to the matter being heard. No person may speak without first being recognized by the Presiding Officer. Each speaker, other than the applicant or appellant, is limited to three (3) minutes, although the Presiding Officer or a majority vote of the Town Council may adjust the time limit. b. Materials for Public Record In Person: Individuals interested in the matter being heard by the Town Council may submit written or graphic evidence and remarks in person at the meeting. All evidence presented will be retained by the Town Secretary’s Office as part of the record of the hearing, in accordance with State law. Electronically: Individuals may also submit written or graphic evidence and remarks electronically by sending the materials to townsec@trophyclub.org. Page 55 of 280 15 Submissions must clearly identify the Town Council meeting date and agenda item to which they pertain. Electronic materials must be submitted at least twenty- four (24) hours prior to the scheduled start time of the Town Council meeting. 5.4 COMMUNICATIONS AND PETITIONS Written communications and petitions, appropriately submitted as described herein, concerning the subject matter of the hearing will be noted, read aloud, or summarized by the Presiding Officer or Town Secretary. A reading in full, limited to the same time limit imposed on all other public comments regarding that agenda item, shall take place if requested by any Council Member. 6. ADDRESSING THE TOWN COUNCIL 6.1 STAFF PRESENTATIONS Staff presentations will be concise and will provide factual background information on the item as well as a recommendation, when appropriate, for the Town Council. 6.2 ORAL PRESENTATIONS BY MEMBERS OF THE PUBLIC The following procedures will guide oral presentations by members of the public at Town Council meetings: a. Prior to the meeting or during the meeting prior to a matter being reached, persons wishing to address the Town Council are requested to complete a Public Meeting Appearance Card and present it to the Town Secretary. b. When called upon, individuals are requested to come to the podium and state their name and address for the record. If speaking for an organization or other group, individuals are requested to identify the group represented. c. Public comments should be directed to the entire governing body pursuant to Texas Gov’t Code Sec. 551.007. 6.3 PUBLIC COMMENTS AGENDA ITEM The Public Comments portion of the Town Council meeting is set aside for members of the public to address the Town Council on any item of business being considered on the agenda, or any item that is not formally scheduled on the agenda, listed on the Consent Agenda, or scheduled as a Public Hearing. Members of the public are requested to complete a Public Meeting Appearance Card prior to the commencement of the meeting and present it to the Town Secretary. a. Timing Public comments are generally permitted at the beginning of the regular Town Page 56 of 280 16 Council meeting, as specified on the agenda. Presentations shall be limited to three (3) minutes each, although the Presiding Officer or a majority vote of the Town Council may adjust the time limit. A person may not “give their time” to another person making comments. b. No Council Deliberations In compliance with the Texas Open Meetings Act, the Town Council may not deliberate or vote on any matter raised during the public comments section of the agenda, except for the purpose of determining whether such matter should be placed on a future Town Council agenda. The Presiding Officer, however, may request the Town Manager, or his designee, to provide additional information on a matter of general interest to the full Town Council, the public at large, or to the citizen making the comment. 6.4 RIGHT TO SPEAK Texas Gov’t Code Sec. 551.007 requires the Town Council to allow a citizen to address the Town Council prior to the Town Council’s consideration of an item listed on the meeting agenda. The Town Charter provides that citizens of the Town shall have reasonable opportunity to be heard at any meeting. A person who wants to speak and address the Town Council regarding an item listed on the agenda to be considered by the Town Council are requested to complete a Public Meeting Appearance Card prior to the commencement of the meeting and present it to the Town Secretary. The citizen may either speak during the Public Comments portion of the meeting or when the item is reached on the agenda after being recognized by the Presiding Officer. 6.5 PUBLIC MEETING APPEARANCE CARDS Public Meeting Appearance Cards may be used by members of the public who do not wish to or cannot verbally address the Town Council during a meeting. A person may indicate such person’s comments and support or opposition for an agenda item on a Public Meeting Appearance Card. During the Public Hearing regarding the item or prior to taking action on an item on the agenda, the Presiding Officer will indicate that the Town Council has received written comments from (name of persons) in support of the item, project, or issue and from (name of persons) in opposition. The minutes will reflect the Town Council’s receipt of written comments in support or opposition of the item, project, or issue. 6.6 REPETITIOUS COMMENTS a. Speakers are discouraged from presenting the same or substantially the same items or arguments to the Council repeatedly for each item or be repetitious in presenting their oral comments. Nothing in the foregoing sentence precludes submission of comments to the Town Council in writing, for such action or non-action as the Council, in its discretion, may deem appropriate. b. In order to expedite matters and to avoid repetitious presentations, the designation Page 57 of 280 17 of a spokesperson is encouraged. Whenever any group of individuals wishes to address the Town Council on the same subject matter, those individuals are encouraged to designate a spokesperson to address the Town Council. 6.7 WAIVER OF RULES Any of the foregoing rules may be waived or suspended by a majority vote of the Council Members present when it is deemed appropriate, based upon the particular facts and circumstances involved. 6.8 NON-EXCLUSIVE RULES The rules set forth are not exclusive and do not limit the inherent power and general legal authority of the Town Council, or of its Presiding Officer, to govern the conduct of Town Council meetings as may be considered appropriate from time to time, or in particular circumstances, for purposes of orderly and effective conduct of the affairs of the Town. 7. COUNCIL MEMBER TRAINING AND PROFESSIONAL DEVELOPMENT 7.1 TOWN COUNCIL ORIENTATION The Town Manager will, in a timely manner, provide appropriate orientation services for new Council Members. Such services shall include, but not be limited to, the following: • Availability of Texas Municipal League conferences and seminars; • An individual meeting with new Council Members informing them about Town facilities and procedures; and • Printed documents and resource materials necessary to the performance of the office of Council Member. 7.2 TOWN COUNCIL TRAVEL, TRAINING, MEMBERSHIPS, AND CLOTHING ALLOCATION POLICY The annual allocation to the Mayor and Council Members (referred to collectively in these Town Council Rules of Procedure as the “Town Council”) for travel, training, memberships, and clothing will be established in the approved budget. That budget will be allocated fourteen and three-tenths percent (14.3%) for each Council Member to utilize as necessary for Town-related purposes for the purchase of travel, training, memberships, and clothing (herein referred to collectively as “Eligible Expenses”). All Eligible Expenses will be reimbursed or paid from this allocation up to each members’ individual budget allocations. Unused allocation will not roll forward to a future budget year. All Town financial policies related to training, travel, and purchases shall apply to the Town Council. The use of Eligible Expense allocations for the Town Council will be maintained, monitored, and tracked by the Town Secretary. A member may contribute from their allocation to another member by submitting an allocation transfer request to the Town Secretary who will Page 58 of 280 18 update the available allocations for each member accordingly. Town funds may only be used for Town-related purposes. For training and/or travel, members are required to submit a justification, which shall be reviewed and approved by the Town Manager. If a training/travel request is denied by the Town Manager, the member may appeal the decision to the Mayor. The Mayor’s decision shall be final. If the Mayor’s training/travel request is denied by the Town Manager, the appeal shall be made to the Mayor Pro Tem. Training opportunities include conferences hosted locally or in other cities/states and online educational seminars where the topic is applicable to the functions of Town government. Travel and training funds will not be used for credit classes at a college, university, or other institution designed to provide post-secondary degrees or training. The Town Council is encouraged to select training events from the following providers: • Texas Municipal League • National League of Cities • North Central Texas Council of Governments Additional travel expenditures for members chosen to represent the Town Council related to attending a special event or otherwise representing the Town shall be made only after having been placed on the agenda of a Town Council Meeting and acted upon by a favorable majority vote. 8. TOWN COUNCIL STAFF RELATIONS AND ADMINISTRATIVE SUPPORT 8.1 COMMUNICATION WITH STAFF The Town Council should contact Town employees through the Town Manager. Council Members should refrain from giving orders or direction to any subordinate of the Town Manager, either publicly or privately. Work assignments and policy direction should come from the Town Council and not from individual Council Members. Nothing herein shall be construed to limit the power of the Town Council to directly communicate (in writing or verbally), with those officers and employees directly appointed by the Town Council (Town Manager, Town Secretary, Town Attorney, and Municipal Court Judge). 8.2 AGENDA QUESTIONS a. Questions arising from Council Members after receiving the agenda should be presented to the Town Manager for staff consideration prior to the Town Council meeting. If additional information is requested, the information will be distributed to all Council Members. b. Any request for additional information shall be provided to the entire Town Council as expeditiously as possible prior to any meeting to ensure appropriate review. Page 59 of 280 19 c. The Town Manager shall designate appropriate staff to address each agenda item and shall see that it is adequately prepared and presented to the Town Council. 8.3 PROBLEM RESOLTION If the Town Manager’s or staff’s time is being dominated or misdirected by a Council Member or in any conflict arising between staff and Town Council, the Town Manager shall: a. Visit with the Council Member and discuss the problem and/or impact on Town Manager’s or staff’s time; b. If unresolved, ask the Mayor to facilitate a resolution to the issue; c. If still unresolved, ask the Mayor to present the concerns to the Town Council; d. If the unresolved issue is with the Mayor, ask the Mayor Pro Tem to facilitate a resolution to the issue; and e. If still unresolved, ask the Mayor Pro Tem to present the concerns to the Town Council. 8.4 STAFF CONDUCT The Town Manager is responsible for the professional and ethical behavior of the Town staff. All staff members shall show each other, Town Council, and the public, respect and courtesy at all times. 8.5 MAIL All general mail will be opened, and date stamped and distributed to individual Council Members as identified herein. a. Letters Addressed to the Mayor and Town Council All letters addressed to the Mayor and Town Council requiring a response from staff will be copied to all Council Members with a note as to which staff person will be preparing a response for either the Mayor’s or Town Manager’s signature. A copy of the response, along with the original letter, will be provided to each Council Member. Letters addressed to the Mayor and Town Council that do not require a response but provide information on Town Council agenda items or like matters are copied to the full Town Council. b. Letters Addressed to Individual Council Members All letters addressed to individual Council Members requiring a response from staff are copied to all Council Members with a note as to which staff person will be preparing a response for either the identified Council Member’s or Town Manager’s signature. Copies of the responses, along with the original letters, are Page 60 of 280 20 provided to the full Town Council. Letters addressed to individual Council Members that do not require a response from staff but provide information on Town Council matters are copied to the full Town Council. Cards and other Council Member mail marked “personal” will not be opened and will not be copied to the full Town Council. These personal items will be placed in the Council Member’s mail slot at Town Hall. 8.6 TOWN COUNCIL CORRESPONDENCE All Council Member correspondence prepared with Town resources (letterhead, typing, staff support, postage, etc.) will reflect the position of the full Town Council, not individual Council Member’s positions. Personal Correspondence: Town Council Members will be provided individual stationery and envelopes to use for official communications reflecting their individual position as a Council Member. 8.7 CLERICAL SUPPORT The Town Secretary’s Office will coordinate the typing of Town-related correspondence requested by individual Council Members. All correspondence typed for Council Members will be on Town letterhead and will reflect the position of the full Town Council and will be copied to the full Town Council. 8.8 TOWN COUNCIL EVENT COORDINATION a. Event Coordination The Town Secretary’s Office will be responsible for coordinating Town Council attendance at public events, functions, and meetings. This includes: • Receiving notifications from Council Members regarding their attendance at upcoming events or functions. • Collecting event details such as location, time, and purpose, as well as tracking potential Council attendance. b. Council Member Notifications Council Members are encouraged to notify the Town Secretary’s Office as soon as possible if they plan to attend any public event or function. This notification will allow the Town Secretary’s Office to assess whether a quorum may be present and Page 61 of 280 21 ensure that Council attendance at public events/meetings complies with all legal requirements. 8.9 REQUESTS FOR RESEARCH OR INFORMATION The Mayor and Council Members may request information or research from the Town staff on a given topic through the Town Manager who will make all members of Council aware of the special request, as it may be of interest to them as well. Accordingly, the Town Manager will provide the results of the request to all members of Council. In the event the Town Manager believes he cannot respond in a timely manner or that the request will require extensive staff time and resources, the Town Manager may present the request to the full Town Council prior to proceeding. If approved, the Town Manager and the Town Council will coordinate a reasonable and responsible timeframe in which to expect the results without unduly interfering with other activities of higher priority. 8.10 TOWN COUNCIL NOTIFICATION OF SIGNIFICANT INCIDENTS In conjunction with the Town’s public safety departments and the Public and Media Relations Director, the Town Manager’s Office will coordinate the notification to the Town Council of major crime, fire or other disasters or incidents. 9. BOARDS AND COMMISSIONS 9.1 BOARD AND COMMISSION APPOINTMENTS/REMOVALS The Town Council Appointments Committee is established to interview applicants and make recommendations to the full Council regarding appointments to all Boards during the annual appointment process and during the year in the event of mid-year vacancies. The Committee will also review and make recommendations for any removals from the Town’s Boards and Commissions as deemed necessary. a. Recruitment The annual recruitment period for Board positions with expiring terms and known vacancies will begin in June, and applications will be accepted through July, or as otherwise directed by the Town Council. In June of each year, the Town Secretary will: • Advertise that the Town is accepting applications for individuals to be considered for appointment to Boards. The notice will specify the vacancies for all Boards and provide details regarding the application procedure and the deadline for receipt of applications. Advertisements will be posted on the Town’s website, marquees, weekly newsletter, through all Town- managed social media platforms, and on posters placed in the lobby of Town Hall. Page 62 of 280 22 • Notify incumbent Board members with expiring terms that their term is approaching. If the member is eligible and wishes to seek another term, they must reapply in the same manner as other applicants. b. Applicant Requirements Applicants for all “Town Boards” which includes, but is not limited to, Commissions, Corporations, Councils (excluding the Town Council), and/or Committee, must meet the following criteria prior to their appointment: • Be United States Citizens. • Be registered voters. • Be residents of the Town for at least six (6) months. • Town elected officials and persons appointed to fill vacancies on any elected Town governmental body may not serve on a Town Board in accordance with the Town Charter. • Consent to and meet the requirements of a background check. • Have not been removed from a previous board or commission. • While applicable technical or educational expertise related to the business of Town Boards is not required, it may be considered by the Appointments Committee and Town Council during the appointment process. c. Application Review/Appointments The Appointments Committee interviews applicants and makes recommendations to the full Council regarding appointments to all Boards and Commissions. The Committee has the flexibility to invite department directors/liaisons, board representatives, or other stakeholders to participate in interviews as non -voting participants. Interviews are typically conducted in July and August, with appointments made in September and terms beginning on October 1. The Committee also considers applicants during the year in the event of mid-year vacancies. The Council stives to provide opportunities for as many interested residents as possible to serve on Town Boards. However, if the number of open seats exceeds the number of qualified applicants, the Council may allow a person to serve on more than one Board. Town Council may act to replace a current member who is serving on more than one Board prior to the end the member’s term, provided there is an adequate number of qualified applicants. Page 63 of 280 23 All applications will be made available to the entire Town Council in the Town Secretary’s Office. During the interview process, Council Members must avoid violations of the Texas Open Meetings Act by directing any comments or feedback on an application to the Town Manager, not to the Appointments Committee. At the conclusion of the interview process, the Committee shall prepare a standardized report outlining its recommended slate of nominees and the justification for each Board appointment. The report shall be submitted to the Town Council for discussion at a dedicated work session prior to consideration at a regular meeting. The regular meeting should be held preferably in September, but not later than the first meeting in October. d. Removal At the request of the Town Manager, Town Secretary, Board/Commission Chair, or any two (2) members of the Town Council, the Committee will review any circumstances such as misconduct, absenteeism, or ineligibility of a Town Board member. The Committee will thoroughly investigate the situation considering all facts, evidence, and viewpoints. If after careful deliberation, a majority of the Committee votes in favor of removal, a formal written report recommending removal will be submitted to the Town Council, with a copy of the report sent to the Town Board member and the applicable Town Board chair. If the Town Board member, does not certify in writing the Town Board member’s resignation from the Town Board, the Town Council will review and consider the recommendation in a scheduled meeting, allowing the Board member to respond, and then vote on the final decision. 9.2 BOARD, COMMITTEE, AND COMMISSION TRAINING a. Members of any Town Board shall complete Town-sponsored open government training within ninety (90) days of their appointment to a Town Board. Such training may be completed either by attending a live training session offered by the Town, or by watching a video provided by the Town. b. The training required by this section is in addition to any training a member of a Town Board may be required to complete pursuant to Texas Gov’t Code Chapters 551 or 552, or other applicable law. c. Failure of a Town Board member to complete the training required by this section, within the time frame prescribed by this section, may be considered grounds for removal. 9.3 CREATION OF AD HOC COMMITTEE/TASK FORCE a. The Town Council may create an Ad Hoc Committee/Task Force to assist the Town Page 64 of 280 24 Council in its business. b. The Ad Hoc Committee/Task Force shall be established by a Town Council resolution or ordinance for a specific purpose that expires upon the completion of its assigned task(s) or according to a specified deadline. c. Any existing ad-hoc committee or any other subgroup not created or required by resolution or ordinance shall cease to exist upon adoption of this policy. 10. PROCEDURES ADMINISTRATION 10.1 BIENNIAL REVIEW OF TOWN COUNCIL RULES OF PROCEDURE The Town Council will review and revise, if deemed necessary, the Town Council Rules of Procedure as needed, and at a minimum, every two (2) years. 10.2 ADHERENCE TO PROCEDURES During Town Council discussions, deliberations and proceedings, the Presiding Officer has been delegated the primary responsibility to ensure that the Town Council, staff and members of the public adhere to the Council’s adopted Rules of Procedure. 10.3 TOWN ATTORNEY AS PROCEDURE ADVISOR The Town Attorney assists the Mayor and Town Council as a resource and as an advisor for interpreting the Town Council’s adopted Rules of Procedure. 10.4 APPLICABILITY OF RULES OF PROCEDURE The Town Council Rules of Procedure shall also apply to the Town Council when sitting as other appointed entities or agencies. The role of Mayor and Mayor Pro Tem shall be interchangeable with the Chair and Vice Chair, or President and Vice President when sitting as another entity. Page 65 of 280 9. BOARDS AND COMMISSIONS 9.1 BOARD AND COMMISSION APPOINTMENTS/REMOVALS The Town Council Appointments Committee is established to interview applicants and make recommendations to the full Council regarding appointments to all Boards during the annual appointment process and during the year in the event of mid-year vacancies. The Committee will also review and make recommendations for any removals from the Town’s Boards and Commissions as deemed necessary. a. Recruitment The annual recruitment period for Board positions with expiring terms and known vacancies will begin in June, and applications will be accepted through July, or as otherwise directed by the Town Council. In June of each year, the Town Secretary will: • Advertise that the Town is accepting applications for individuals to be considered for appointment to Boards. The notice will specify the vacancies for all Boards and provide details regarding the application procedure and the deadline for receipt of applications. Advertisements will be posted on the Town’s website, marquees, weekly newsletter, through all Town- managed social media platforms, and on posters placed in the lobby of Town Hall. • Notify incumbent Board members with expiring terms that their term is approaching. If the member is eligible and wishes to seek another term, they must reapply in the same manner as other applicants. b. Applicant Requirements Applicants for all “Town Boards” which includes, but is not limited to, Commissions, Corporations, Councils (excluding the Town Council), and/or Committee, must meet the following criteria prior to their appointment: • Be United States Citizens. • Be registered voters. • Be residents of the Town for at least six (6) months. • Town elected officials and persons appointed to fill vacancies on any elected Town governmental body may not serve on a Town Board in accordance with the Town Charter. Page 66 of 280 • Consent to and meet the requirements of a background check. • Have not been removed from a previous board or commission. • While applicable technical or educational expertise related to the business of Town Boards is not required, it may be considered by the Appointments Committee and Town Council during the appointment process. c. Application Review/Appointments The Appointments Committee interviews applicants and makes recommendations to the full Council regarding appointments to all Boards and Commissions. The Committee has the flexibility to invite department directors/liaisons, board representatives, or other stakeholders to participate in interviews as non -voting participants. Interviews are typically conducted in July and August, with appointments made in September and terms beginning on October 1. The Committee also considers applicants during the year in the event of mid-year vacancies. The Council stives to provide opportunities for as many interested residents as possible to serve on Town Boards. However, if the number of open seats exceeds the number of qualified applicants, the Council may allow a person to serve on more than one Board. Town Council may act to replace a current member who is serving on more than one Board prior to the end the member’s term, provided there is an adequate number of qualified applicants. All applications will be made available to the entire Town Council in the Town Secretary’s Office. During the interview process, Council Members must avoid violations of the Texas Open Meetings Act by directing any comments or feedback on an application to the Town Manager, not to the Appointments Committee. At the conclusion of the interview process, the Committee shall prepare a standardized report outlining with its recommended slate of nominees and the justification for each Board appointment. The report shall be submitted to the Town Council for discussion at a dedicated work session prior to and consideration, at a regular meeting. The regular meeting should be held preferably in September, but not later than the first meeting in October. d. Removal At the request of the Town Manager, Town Secretary, Board/Commission Chair, or any two (2) members of the Town Council, the Committee will review any circumstances such as misconduct, absenteeism, or ineligibility of a Town Board member. The Committee will thoroughly investigate the situation considering all facts, evidence, and viewpoints. If after careful deliberation, a majority of the Committee votes in favor of removal, a formal written report recommending Page 67 of 280 removal will be submitted to the Town Council, with a copy of the report sent to the Town Board member and the applicable Town Board chair. If the Town Board member, does not certify in writing the Town Board member’s resignation from the Town Board, the Town Council will review and consider the recommendation in a scheduled meeting, allowing the Board member to respond, and then vote on the final decision. 9.2 BOARD, COMMITTEE, AND COMMISSION TRAINING a. Members of any Town Board shall complete Town-sponsored open government training within ninety (90) days of their appointment to a Town Board. Such training may be completed either by attending a live training session offered by the Town, or by watching a video provided by the Town. b. The training required by this section is in addition to any training a member of a Town Board may be required to complete pursuant to Texas Gov’t Code Chapters 551 or 552, or other applicable law. c. Failure of a Town Board member to complete the training required by this section, within the time frame prescribed by this section, may be considered grounds for removal. 9.3 CREATION OF AD HOC COMMITTEE/TASK FORCE a. The Town Council may create an Ad Hoc Committee/Task Force to assist the Town Council in its business. b. The Ad Hoc Committee/Task Force shall be established by a Town Council resolution or ordinance for a specific purpose that expires upon the completion of its assigned task(s) or according to a specified deadline. c. Any existing ad-hoc committee or any other subgroup not created or required by resolution or ordinance shall cease to exist upon adoption of this policy. Page 68 of 280 TOWN COUNCIL COMMUNICATION MEETING DATE: February 24, 2025 FROM: Denise Deprato, Director of Human Resources AGENDA ITEM: Consider authorizing the Town Manager to negotiate and execute an agreement with Labor Finders for a ten-month temporary staffing contract amount not to exceed $48,000 for staffing services. (Denise Deprato, Director of Human Resources) BACKGROUND/SUMMARY: The Town of Trophy Club currently faces a critical staffing gap within the Streets Division due to an extended leave of absence of a full-time employee. This leave is anticipated to last beyond the end of the fiscal year, creating the need for temporary support to ensure continued service delivery and efficiency in the department. To address this staffing need, the Town proposes partnering with Labor Finders, a reputable staffing agency selected after reaching out to five agencies and interviewing three. Labor Finders was chosen for their extensive network of pre-screened, reliable candidates and their proven ability to quickly fill specialized roles. Their flexible staffing solutions will allow the Town to meet its immediate staffing needs while ensuring the continued smooth operation of the Streets Division during the extended leave period. The proposed partnership with Labor Finders will provide temporary staffing for the Streets Maintenance Worker position, with a budget not to exceed $48,000, which includes a service fee of up to 40% of labor costs. This collaboration will enable the Town to meet staffing requirements through January 2025, minimizing disruptions and ensuring the efficient delivery of essential services in the Streets Division. By partnering with Labor Finders, the Town will ensure that its Streets Maintenance Division remains adequately staffed, allowing for the continued upkeep of the Town’s infrastructure and meeting the needs of its residents, businesses, and visitors. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: The ten-month agreement, with a not-to-exceed amount of $48,000, will be funded through personnel savings from the extended leave of absence. The current funds are allocated in the personnel budget within the Street Maintenance Fund (40%), General Fund (40%), and Strom Drainage Fund (20%) and will be reallocated to the professional services account line items within those respective funds. Page 69 of 280 LEGAL REVIEW: N/A ATTACHMENTS: 1. Agreement ACTIONS/OPTIONS: Staff recommends that the Town Council move to authorize the Town Manager to negotiate and execute an agreement with Labor Finders for a ten-month temporary staffing contract amount of not to exceed $48,000 for staffing services. Page 70 of 280 PROJECT NAME: Staffing Services DEPARTMENT: Human Resources Page 1 of 10 Town of Trophy Club CONTRACTOR SERVICES AGREEMENT THIS AGREEMENT is made as of February 2025 (“Effective Date”), by and between the Town of Trophy Club, a Texas home rule municipal corporation (“TOWN”), and Labor Finders with offices located at 6723 Baker Blvd., Richland Hills, Texas 76118, (817) 838-3900 (“CONTRACTOR”). For and in consideration of the mutual promises, terms, and conditions of this Agreement, TOWN and CONTRACTOR agree as follows: 1.Services. CONTRACTOR shall provide to TOWN the temporary staffing and employment placement services in the time, place and manner as set forth in Exhibit A, which is attached hereto and incorporated herein. 2.Time of Performance. CONTRACTOR shall provide services outlined in Section 1 above from the Effective Date of this Agreement through January 31, 2025. 3.Payment. The total not-to-exceed amount of this Agreement is $48,000. CONTRACTOR shall be paid for the performance of services at the hourly rate, daily rate, flat fee, lump sum or other as set forth in Exhibit B as applicable, which is attached hereto and incorporated herein. i. CONTRACTOR shall not be compensated for services outside the scope of services specified in this Agreement, or in excess of the amount set forth above without prior written approval of the TOWN. ii. Invoices shall be submitted as specified in Exhibit B, attached hereto and incorporated herein. iii. TOWN shall remit payment on invoice within thirty (30) days of receipt in accordance with the Texas Prompt Payment Act, Texas Gov’t Code Ch. 2251. iv. Invoices not paid within sixty (60) days of receipt shall accrue a late fee of 1% for each subsequent 30-day period during which the invoice remains unpaid. 4.Representatives. a. The TOWN Representative for this Agreement is: Denise Deprato, Director of Human Resources 1 Trophy Wood Drive Trophy Club, Texas 76262 Page 71 of 280 PROJECT NAME: Staffing Services DEPARTMENT: Human Resources Page 2 of 10 (682) 237-2985 hr@trophyclub.org All CONTRACTOR questions pertaining to this Agreement shall be referred to the TOWN Representative or the Representative’s designee. b. The CONTRACTOR Representative for this Agreement is: Jon Stolee, Branch Manager 6723 Baker Blvd. Richland Hills, Texas 76118 (469) 978-3583 All TOWN questions pertaining to this Agreement shall be referred to the CONTRACTOR Representative. All correspondence to CONTRACTOR shall be addressed to the address set forth in this Agreement. Unless otherwise provided in this Agreement, all correspondence to the TOWN shall be addressed to the TOWN Representative. 5.Facilities and Equipment. Except as set forth below, CONTRACTOR shall, at its sole cost and expense, furnish all facilities and equipment that may be required for CONTRACTOR to perform services pursuant to this Agreement. TOWN shall furnish to CONTRACTOR only the facilities and equipment listed below. a. TOWN shall furnish the following facilities or equipment for temporary workers hired by the TOWN pursuant to this Agreement. - Personal Protective Equipment - Uniform Apparel (excluding steel toe boots) - All vehicles and equipment required to complete work projects 6.Insurance Requirements. During the entire term of this Agreement, CONTRACTOR shall maintain the insurance coverage described in this Section. a. Full compensation for all premiums that CONTRACTOR is required to pay for the insurance coverage described herein shall be included in the compensation specified for the Services provided by CONTRACTOR under this Agreement. No additional compensation will be provided for CONTRACTOR’s insurance premiums. Any available insurance proceeds in excess of the specified minimum limits and coverages shall be available to the TOWN, as named additional insured under the CONTRACTOR’s policy. b. It is understood and agreed by the CONTRACTOR that its liability to the TOWN shall not in any way be limited to or affected by the amount of insurance coverage required or carried by the CONTRACTOR in connection with this Agreement. i. Minimum Scope & Limits of Insurance Coverage Page 72 of 280 PROJECT NAME: Staffing Services DEPARTMENT: Human Resources Page 3 of 10 (1)Commercial General Liability Insurance providing coverage at least as broad as ISO CGL Form 00 01 on an occurrence basis for bodily injury, including death, of one or more persons, property damage, and personal injury, arising out of activities performed by or on behalf of CONTRACTOR, its sub-consultants, and subcontractors, products and completed operations of CONTRACTOR, its sub- consultants, and subcontractors, and premises owned, leased, or used by CONTRACTOR, its sub-consultants, and subcontractors, with limits of not less than one million dollars ($1,000,000) per occurrence. The policy shall provide contractual liability and products and completed operations coverage for the term of the policy. (2)Automobile Liability Insurance providing coverage at least as broad as ISO Form CA 00 01 for bodily injury, including death, of one or more persons, property damage, and personal injury, with limits of not less than one million dollars ($1,000,000) per accident. The policy shall provide coverage for owned, non- owned, and/or hired autos as appropriate to the operations of the CONTRACTOR. (a) TOWN shall provide automobile liability coverage for Town-owned automobiles and mobile equipment utilized by CONTRACTOR employees in the performance of TOWN operations. (b)No automobile liability insurance shall be required if CONTRACTOR completes the following certification: “I certify that a motor vehicle will not be used in the performance of any work or services under this agreement.” _______ (CONTRACTOR initials) (3)Workers’ Compensation Insurance with statutory limits, and Employers’ Liability Insurance with limits of not less than one million dollars ($1,000,000). The Workers’ Compensation policy shall include a waiver of subrogation in favor of the TOWN. (4)Professional Liability Insurance providing coverage on a claims made basis for errors, omissions, or malpractice with limits of not less than one million ($1,000,000) dollars. If required, such coverage must be continued for at least one (1) year following the completion of all Services and Additional Services under this Agreement. The retroactive date must be prior to the date this Agreement is approved or any Services are performed. ii. Additional Insured Coverage (1)Commercial General Liability Insurance: The TOWN, its officials, employees, and volunteers shall be covered by policy terms or endorsement as additional insureds as respects general liability arising out of: activities performed by or on behalf of CONTRACTOR, its sub-consultants, and subcontractors; products and completed Page 73 of 280 PROJECT NAME: Staffing Services DEPARTMENT: Human Resources Page 4 of 10 operations of CONTRACTOR, its sub-consultants, and subcontractors; and premises owned, leased, or used by CONTRACTOR, its sub-consultants, and subcontractors. (2)Automobile Liability Insurance: The TOWN, its officials, employees, and volunteers shall be covered by policy terms or endorsement as additional insureds as respects automobile liability. iii. Other Insurance Provisions (1)The policies are to contain, or be endorsed to contain, the following provisions: (a) Except for professional liability, CONTRACTOR’s insurance coverage, including excess insurance, shall be primary insurance as respects TOWN, its officials, employees, and volunteers. Any insurance or self-insurance maintained by TOWN, its officials, employees, or volunteers shall be in excess of CONTRACTOR’s insurance and shall not contribute with it. (b)Any failure to comply with reporting provisions of the policies shall not affect coverage provided to TOWN, its officials, employees, or volunteers. (c) Coverage shall state that CONTRACTOR’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. (d)TOWN will be provided with thirty (30) days written notice of cancellation or material change in the policy language or terms. c. Acceptability of Insurance i. Insurance shall be placed with insurers with a Bests’ rating of not less than A:VI. Self- insured retentions, policy terms or other variations that do not comply with the requirements of this Section 6 must be declared to and approved by the TOWN in writing prior to execution of this Agreement. d. Verification of Coverage i. CONTRACTOR shall furnish TOWN with certificates and required endorsements evidencing the insurance required. The certificates and endorsements shall be forwarded to the TOWN representative named in Section 4. Copies of policies shall be delivered to the TOWN on demand. Certificates of insurance shall be signed by an authorized representative of the insurance carrier. ii. For all insurance policy renewals during the term of this Agreement, CONTRACTOR shall send insurance certificates reflecting the policy renewals directly to the TOWN Representative. Page 74 of 280 PROJECT NAME: Staffing Services DEPARTMENT: Human Resources Page 5 of 10 iii. The TOWN may withdraw its offer of contract or cancel this Agreement if the certificates of insurance and endorsements required have not been provided prior to execution of this Agreement. The TOWN may withhold payments to CONTRACTOR or cancel the Agreement if the insurance is canceled or CONTRACTOR otherwise ceases to be insured as required herein. e. Subcontractors i. CONTRACTOR shall require and verify that all sub-consultants and subcontractors maintain insurance coverage that meets the minimum scope and limits of insurance coverage specified in Subsection A, above. 7.Termination of Services. The TOWN may terminate or suspend the CONTRACTOR’s services under this Agreement at any time upon paying all sums due the CONTRACTOR for work to time of termination and after giving the CONTRACTOR seven (7) calendar days prior written notice by certified mail, stating the reason for such termination or suspension. Upon delivery of such notice by the TOWN, the CONTRACTOR shall discontinue all services in connection with the performance of the Agreement and shall proceed to cancel promptly all existing orders and contracts insofar as such orders or contracts are chargeable to the Agreement. As soon as practicable after receipt of notice of termination, the CONTRACTOR shall submit a statement, showing in detail, the services performed under this Agreement less such payments on account of the charges as have been previously made. In the event of termination or abandonment of the CONTRACTOR’s services under this Agreement, payment shall be made to the CONTRACTOR for all services performed to the date of same. 8.Conflict of Interest Requirements. Under the Texas Local Government Code Chapter 176, CONTRACTOR shall complete all required Conflicts of Interest documents. 9.Entire Agreement. This document represents the entire agreement between these parties. This Agreement does not allow the delivery of any goods or services outside the scope of services described in this document. The Town is not liable for the costs of any good or service delivered outside the scope of services in this Agreement. The Vendor is not required to provide any services outside the scope of services. 10.Jurisdiction and Venue. Any and all disputes, including but not limited to contract, tort, equitable, and/or statutory claims, between or among the parties to the Agreement, or their affiliates, shall be governed by the laws of the State of Texas, without regard to conflicts of law or any provisions of the UCC, and all legal disputes shall be brought and maintained exclusively in a state or federal court located in Denton County, Texas. 11.Savings Clause/Severability. Should any portion of this agreement be deemed unenforceable, the remainder of the agreement stays intact and enforceable. 12.Texas Verifications. CONTRACTOR verifies that: (1) It does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association, as defined in Texas Government Code § 2274.001, and that it will not during the term of the Page 75 of 280 PROJECT NAME: Staffing Services DEPARTMENT: Human Resources Page 6 of 10 contract discriminate against a firearm entity or firearm trade association; (2) It does not “boycott Israel” as that term is defined in Texas Government Code Ch. 2271 and § 808.001 and it will not boycott Israel during the term of this Agreement; (3) It does not “boycott energy companies,” as those terms are defined in Texas Government Code §§ 809.001 and 2274.001, and it will not boycott energy companies during the term of the Agreement; (4) It does not engage in scrutinized business operations with Sudan, Iran, or designated foreign terrorist organization as defined in Texas Government Code, Chapter 2270; and (5) It is not owned by or the majority of its stock or other ownership interest is held or controlled by i) individuals who are citizens of China, Iran, North Korea, Russia, or a designated country as defined by Texas Government Code § 2275.0101; or ii) a company or other entity, including a governmental entity, that is owned or controlled by citizens of or is directly controlled by the government of China, Iran, North Korea, Russia, or a designated country; nor is it headquartered in China, Iran, North Korea, Russia, or a designated country. 13.Gift to Public Servant. The TOWN may terminate the Agreement immediately if the CONTRACTOR has offered, or agreed to confer any benefit upon a TOWN employee or official that the TOWN employee or official is prohibited by law from accepting. 14.Texas Public Information Act. Notwithstanding any other provision to the contrary in the Agreement, all information, documents, and communications relating to the Agreement may be subject to the Texas Public Information Act (“Act”) and any opinion of the Texas Attorney General or a court of competent jurisdiction relating to the Act. 15.Governmental Functions/Immunities. The parties hereby acknowledge and agree that the TOWN is entering into this Agreement pursuant to its governmental functions and that nothing contained in this Agreement shall be construed as constituting a waiver of the TOWN’s governmental immunity from suit or liability, or right to a trial by jury, which are expressly reserved to the fullest extent allowed by law. Notwithstanding anything to the contrary in the Agreement, the parties hereby acknowledge and agree that to the extent the Agreement is subject to the provisions of Subchapter I of Chapter 271, Texas Local Gov’t Code, as amended, the TOWN’s immunity from suit is waived only as set forth in Subchapter I of Chapter 271, Texas Local Gov’t Code. Further, the parties agree that the Agreement is made subject to all applicable provisions of the Texas Civil Practice and Remedies Code, including, but not limited to all defenses, limitations, and exceptions to the limited waiver of immunity from liability provided in Chapter 101 and Chapter 75. 16.Ethics Disclosure. To the extent required by law, the CONTRACTOR represents that it has completed a Texas Ethics Commission (the “TEC”) form 1295 (“Form 1295”) generated by the TEC’s electronic filing application in accordance with the provisions of Texas Gov’t Code Ch. 2252.908 and the rules promulgated by the TEC. The parties agree that, with the exception of the information identifying the TOWN and the contract identification number, the TOWN is not responsible for the information contained in the Form 1295. The information contained in the Form 1295 has been provided solely by the CONTRACTOR and the TOWN has not verified such information. Page 76 of 280 PROJECT NAME: Staffing Services DEPARTMENT: Human Resources Page 7 of 10 17.No Joint Venture/Partnership. It is understood that nothing in this Agreement shall be construed to result in the formation of a joint venture or partnership between the parties. CONTRACTOR is an independent contractor and is not an employee of the TOWN. 18. Amendment/Assignment. This Agreement may be amended only by an instrument in writing signed by both parties, and shall not be assigned without the express written approval of the TOWN. 19.Waiver of Attorney’s Fees. The parties expressly covenant and agree that in the event of any litigation arising between the parties relating to the Agreement, each party shall be solely responsible for payment of its attorneys and that in no event shall either party be responsible for the other party’s attorneys’ fees regardless of the outcome of the litigation. 20.Captions. The captions to the various clauses of the Agreement are for informational purposes only and shall not alter the substance of the terms and conditions of the Agreement. 21.Authority. The person signing this Agreement for CONTRACTOR represents and warrants that he or she has accessed and read all contract documents and is fully authorized to sign this Agreement on behalf of CONTRACTOR and to bind CONTRACTOR to the performance of Agreement’s obligations. Executed to be effective as of the day and year first above stated. TOWN OF Trophy Club ___________________________________ Brandon Wright Town Manager URE Consulting Group ___________________________________ Jon Stolee Branch Manager Page 77 of 280 PROJECT NAME: Staffing Services DEPARTMENT: Human Resources Page 7 of 10 EXHIBIT A SCOPE OF SERVICE CONTRACTOR shall provide Staffing Services as described herein. 1. TOWN shall provide CONTRACTOR a work order when temporary staffing services are requested and include the following: •Classification •Pay Range •Number of employees needed •Work Schedule •Duration of assignment •Department and Supervisor 2. CONTRACTOR shall provide skilled and qualified individuals to perform a variety of job duties as outlined in the Town Classification Specifications, including but not limited to positions such as Crossing Guard, Parks Maintenance Worker, Streets Maintenance Worker, and Streets Superintendent. 3. CONTRACTOR is responsible for ensuring that all employees provided meet the qualifications, experience, and conduct standards set by the TOWN, as well as complying with all relevant regulations and laws governing staffing services. 4. CONTRACTOR shall conduct a thorough background check and drug screening for each candidate before placement. The background check and drug screening shall not be more than 30 days old include, but not be limited to: •Employment Verification •Name and Social Security Number Verification •Sex Offender Registry Check •Driver’s License Verification 5. Upon request by the TOWN, CONTRACTOR shall provide candidates for interviews. The CONTRACTOR will ensure that only individuals who meet the required qualifications are presented to the TOWN for consideration. 6. TOWN shall pre-approve the work schedule and any overtime requests. 7. CONTRACTOR shall ensure that all placed employees complete a weekly timesheet. The TOWN’s direct supervisor shall review and sign the timesheet at the end of each day or week to approve the hours worked. 8. Employee Removal and Replacement: In the event that TOWN determines that an employee provided by the CONTRACTOR is not suitable for the assigned duties, CONTRACTOR shall Page 78 of 280 PROJECT NAME: Staffing Services DEPARTMENT: Human Resources Page 8 of 10 immediately remove the employee from the TOWN contract and operations. CONTRACTOR shall provide a suitable replacement employee as quickly as possible to ensure continuity of operations. 9. CONTRACTOR shall pay employees placed with the Town promptly, in accordance with the CONTRACTOR's pay policy, and in full compliance with all applicable local, state, and federal laws. 10.CONTRACTOR shall provide benefits and remit payroll taxes for employees in accordance with all applicable local, state, and federal laws. 11.TOWN shall comply with all applicable laws and ordinances relating to health and safety, and agrees and undertakes to provide any safety equipment, clothing or devices necessary or required by law for any work to be performed or used by TOWN’s employees in the performance of similar work. 12.TOWN shall not entrust CONTRACTOR employees with unattended premises, cash, and checks, negotiable or other valuable without the prior written permission from CONTRACTOR. CONTRACTOR shall not be responsible for claims made under its Fidelity Bond unless such claims are reported in writing to CONTRACTOR and to the local police by the TOWN within fourteen (14) days after notice of loss. Page 79 of 280 PROJECT NAME: Staffing Services DEPARTMENT: Human Resources Page 9 of 10 EXHIBIT B FEE SCHEDULE 1.Employee Hourly Rate: Placed employees shall be paid an hourly rate within the pay range as set forth by the Town Council and agreed upon by the TOWN in writing prior to the employee starting work. 2.Administrative Fee: The CONTRACTOR shall receive an administrative fee of 40% of the total employee pay for all hours worked by the employee. 3.Offer of Employment by Town: Should the TOWN decide to offer employment to one of the CONTRACTOR’s temporary workers, the TOWN is required first to make a request to the CONTRACTOR at least twenty (20) working days prior to the employee being added to the TOWN’s payroll. Upon an employee working ninety (90) working days or 720 hours, the TOWN may make an offer of employment to the employee at no additional charge to the TOWN. 4.Transition to Town Employment: If the TOWN elects to make an offer of employment and the CONTRACTOR’s employee is placed as a TOWN employee, the TOWN shall pay the CONTRACTOR the remaining balance for hours worked and the administrative fee corresponding to the hours worked up until the offer of employment is made. Page 80 of 280 TOWN COUNCIL COMMUNICATION MEETING DATE: February 24, 2025 FROM: Chase Ellis, Director of Parks & Recreation AGENDA ITEM: Consider authorizing the Town Manager to negotiate and execute a purchase and service agreement with PYROTEX, Inc. in the amount of $27,000 for the Fourth of July fireworks show. (Chase Ellis, Director of Parks & Recreation) BACKGROUND/SUMMARY: The annual 4th of July Celebration is one of Trophy Club’s most anticipated community events, bringing residents and visitors together for an evening of festivities, entertainment, and patriotic celebration. A key highlight of the event is the grand fireworks display, which serves as the finale to the evening’s activities. To ensure a high-quality and safe fireworks show, the Parks & Recreation Department has coordinated with a reputable fireworks vendor to provide a 20-minute professional display. The purchase agreement covers all necessary services, including the procurement, setup, and execution of the show in compliance with safety regulations and permitting requirements. The Town received three responses from fireworks companies, with one of the companies responding that they are unable to meet the Town's request. The quote of $27,000 is the lowest cost of the responding vendors for this service. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: The cost for the 2025 4th of July fireworks show is $27,000. This amount is budgeted for in the FY 2025 Budget in the Hotel Occupancy Tax Fund. LEGAL REVIEW: Town Attorney, Dean Roggia, has reviewed the contract as to form and legality. ATTACHMENTS: 1. Vendor Quotes ACTIONS/OPTIONS: Staff recommends that the Town Council move to authorize the Town Manager to negotiate and execute a purchase and service agreement with PYROTEX, Inc. in the amount of $27,000 for the Fourth of July fireworks show. Page 81 of 280 Page 82 of 280 Page 83 of 280 Page 84 of 280 Page 85 of 280 Page 86 of 280 Page 87 of 280 Page 88 of 280 Page 89 of 280 Page 90 of 280 TOWN COUNCIL COMMUNICATION MEETING DATE: February 24, 2025 FROM: Matt Cox, Director of Community Development AGENDA ITEM: Case SUP-25-001 (Hampton Inn by Hilton Trophy Club) Conduct a public hearing and consider an ordinance approving a specific use permit request by Titan Beverage LLC on behalf of the owner Hydra Hotels LLC (Hampton Inn by Hilton Trophy Club) for alcohol beverage sales for a TABC BG Permit (for on premises or off premises consumption) approximately 250-feet north of SH 114, located at 525 Plaza Dr., Trophy Club, Tarrant County, Texas. (Matt Cox, Director of Community Development) i. Conduct Public Hearing ii. Consider Ordinance Approval BACKGROUND/SUMMARY: Titan Beverage LLC on behalf of the owner Hydra Hotels LLC Hampton Inn by Hilton Trophy Club) is requesting approval of a specific use permit (SUP) for alcoholic beverage sales for on premises or off premises consumption use according to Section 14.02.252 of the Town' s Code of Ordinances. The property's zoning of Planned Development District 25 (PD-25) does not restrict the sales of alcoholic beverages beyond the regulations of the Town Code and State Law. Titan Beverage LLC is applying for a SUP to obtain a mixed beverage restaurant permit (BG) and a mixed beverage late hours permit (LH) that will allow the sale and consumption of wine, beer, and liquor on the premises and during late hours (12 midnight - 2 AM). The Town Code Page 91 of 280 does not restrict hours of operation beyond TABC's regulations. Section 14.02.252(b) of the Code of Ordinance states that no alcoholic beverages may be sold within 300 feet of a church, public school or private school, or public hospital. Subsection (g) describes the methods of measurement as front door to front door and along the street from property line when measuring for churches and public hospitals, and in a direct line from the nearest property line to property line when measuring to public schools and private schools. Hampton Inn by Hilton Trophy Club complies with Town and State requirements, as the closest church (Lake Cities Church of Christ) is approximately 4,000 feet away, and the closest public or private school (Walnut Grove Elementary School) is approximately 5,808 feet away. The nearby Baylor Scott & White Medical Center - Trophy Club is a private hospital, so there are no separation requirements. Parking needs have been addressed by the required on-site parking spaces. The Chief of Police has reviewed this application, as required by Code, and has no objections. A notice of public hearing was distributed as required by State Law. To date, staff has not received any inquiries. BOARD REVIEW/CITIZEN FEEDBACK: The Planning & Zoning Commission considered the specific use permit at their February 6, 2025 meeting and voted unanimously (4-0) to recommend approval of the request to the Town Council. FISCAL IMPACT: There is no financial impact associated with this agenda item. LEGAL REVIEW: Town Attorney, Dean Roggia, has reviewed the ordinance as to form and legality. ATTACHMENTS: 1. Ordinance 2. Hampton Inn Map Location 3. Specific Use Permit Application ACTIONS/OPTIONS: Staff recommends that the Town Council conduct the public hearing and move to approve the ordinance approving a specific use permit request by Titan Beverage LLC on behalf of the owner Hydra Hotels LLC (Hampton Inn by Hilton Trophy Club) for alcohol beverage sales for a TABC BG Permit (for on premises or off premises consumption) approximately 250-feet north of SH 114, located at 525 Plaza Dr., Trophy Club, Tarrant County, Texas. Page 92 of 280 TOWN OF TROPHY CLUB, TEXAS ORDINANCE NO. 2025-XX AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS APPROVING A SPECIFIC USE PERMIT FOR ALCOHOLIC BEVERAGE SALES FOR ON-PREMISES OR OFF-PREMISES CONSUMPTION, LOCATED AT 525 PLAZA DRIVE WITHIN PD PLANNED DEVELOPMENT NO. 25; PROVIDING FOR INCORPORATION OF PREMISES; PROVIDING APPLICABLE REGULATIONS, DISCONTINUATION, & REVOCATION; PROVIDING A SAVINGS AND REPEALER CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY NOT TO EXCEED THE SUM OF TWO THOUSAND DOLLARS ($2,000.00) 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, the applicant seeks to sell alcoholic beverages, including beer and wine, for on-premises or off-premises consumption in conjunction with the hotel, restaurant, and bar uses operated by Hampton Inn by Hilton Trophy Club, located at 525 Plaza Drive, within Planned Development 25; and WHEREAS, all legal requirements and conditions were complied with, and after public notices were given in compliance with State law and public hearings were conducted, and after considering the information submitted at those public hearings and all other relevant information and materials, the Planning & Zoning Commission of the Town has recommended to the Town Council the adoption of this Ordinance; and WHEREAS, after due deliberations and consideration of the recommendation of the Planning & Zoning Commission and the information and other materials received at the public hearing, the Town Council has concluded that the adoption of this Ordinance is in the best interests of the Town of Trophy Club, Texas and of the public health, safety, and welfare. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: SECTION 1. INCORPORATION OF PREMISES The above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. Page 93 of 280 ORDINANCE NO.2025-XX PAGE 2 SECTION 2. APPLICABLE REGULATIONS, DISCONTINUATION, & REVOCATION In all respects the Land shall be subject to the applicable regulations contained in the Comprehensive Zoning Ordinance and all other applicable and pertinent ordinances and regulations of the Town, including without limitation regulations governing PD Planned Development No. 25 and all amendments thereto. The Specific Use Permit granted by this Ordinance shall control in cases of conflict between this Ordinance and/or PD Planned Development No. 25 and/or the Comprehensive Zoning Ordinance. The Specific Use Permit granted hereby shall discontinue if the use for which this Specific Use Permit is granted ceases to be operated at the permitted location for a minimum period of six (6) continuous months. Further, this Specific Use Permit shall be subject to revocation in accordance with the Town of Trophy Club Code of Ordinances. SECTION 3. SAVINGS AND REPEALER This Ordinance shall be cumulative of all other ordinances of the Town affecting the regulation of land and zoning and shall not repeal any of the provisions of those ordinances except in those instances where the 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 action or 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 The sections, paragraphs, sentences, phrases, clauses and words of this Ordinance are severable, and if any section, paragraph, sentence, phrase, clause or word in this Ordinance or application thereof to any person or circumstance is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance, and the Town Council hereby declares that it would have passed such remaining portions of this Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 5. 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 hereof shall be fined, upon conviction, in an amount not less than One Dollar ($1.00) nor more than Two Thousand Page 94 of 280 ORDINANCE NO.2025-XX PAGE 3 Dollars ($2,000.00), and a separate offense shall be deemed committed each day during or on which a violation occurs or continues. The penalty provided by this section shall be cumulative of all other penalties allowed by law, including without limitation, civil remedies available for enforcement of this Ordinance. SECTION 6. 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 3.16 of the Town’s Charter. SECTION 7. EFFECTIVE DATE This Ordinance shall become effective from and after its date of adoption and publication as provided by law, and it is so ordained. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this 24th day of February 2025. Jeannette Tiffany, Mayor ATTEST: Tammy Dixon, Town Secretary APPROVED AS TO FORM: Dean Roggia, Town Attorney Page 95 of 280 Page 96 of 280 Page 97 of 280 TOWN COUNCIL COMMUNICATION MEETING DATE: February 24, 2025 FROM: April Duvall, Director of Finance AGENDA ITEM: Consider accepting the Annual Comprehensive Financial Report for the Town of Trophy Club Fiscal Year 2024. (April Duvall, Director of Finance) BACKGROUND/SUMMARY: The Town of Trophy Club's financial records have been prepared and audited by FORVIS, LLP, Certified Public Accountants, as required by the Town Charter. The Town's financial performance for FY 2024 is presented in the attached Annual Financial Report based on the audited records. The goal of the independent audit is to provide reasonable assurance that the financial statements of the Town are presented fairly, in all material respects, for the fiscal year ended September 30, 2024. This independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used, and significant estimates made by management, and evaluating the overall financial statement presentation. Below are highlights from the FY 2024 Annual Comprehensive Financial Report: 1. The Town's auditor, FORVIS, LLP, has issued an unmodified opinion on the Town's financial records, indicating that the Town's financial records are fairly represented in all material aspects for the fiscal year ending September 30, 2024. 2. The Town meets and surpasses all minimum reserve levels required by the Financial Reserves Policy approved in April 2024. 3. General Unassigned Fund Balance (the most important measure of the Town’s financial health and safety net) increased by $2,395,350 to $12,376,571 in FY 2024 compared to FY 2023. This amount represents 81.7% of General Fund expenditures. The Town’s Financial Reserves Policy sets a range for unassigned fund balance between 30% and 50% of operating expenditures, with a target rate of 45%. Reserves at the end of FY 2024 are approximately $4.8 million higher than the top end of that range. Consistent with the Town’s Financial Reserves Policy, staff will develop a list of one-time uses for Council consideration to reduce excess reserves. 4. Fund balances across all Governmental Funds (funds that are primarily funded through taxes used for general government purposes) increased by $3,852,921, primarily driven by increases in the General Fund, Hotel Occupancy Fund, Park Land Dedication Fund, and Tax Increment Reinvestment Zone #1 Fund. 5. The Town’s Financial Reserves Policy requires that current assets in Governmental Funds exceed current liabilities. At the end of FY 2024, the Town surpasses this requirement with current assets at $52.6 million against current liabilities of $4.7 million. Page 98 of 280 6. The Town’s Financial Reserves Policy requires unrestricted cash and short-term investments of at least 100% of current liabilities in Governmental Funds. The FY 2024 Annual Comprehensive Financial Report surpasses this requirement with $30.5 million in cash and cash equivalents against current liabilities of $4.7 million (654%). 7. The Town’s Financial Reserves Policy requires current assets of at least 75% of current liabilities for Business-Type Funds (Storm Drainage & Trophy Club Park). At the end of FY 2024, the Town surpasses this requirement with current assets at $2.3 million against current liabilities of $23,183 (1,002%). 8. The Town’s Financial Reserves Policy requires unrestricted cash and short-term investments of at least 50% of current liabilities in Business-Type Funds. The FY 2024 Annual Comprehensive Financial Report surpasses this requirement with $2.3 million in cash and cash equivalents against current liabilities of $23,183 (985%). 9. Overall cash and cash equivalents in Business-Type Funds increased from $1,994,279 to $2,284,095. The Town of Trophy Club's financial position remains strong with additional financial improvement achieved during FY 2024. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the Town’s financial statements for the fiscal year ended September 30, 2024 are fairly presented in conformity with Generally Accepted Accounting Principles. An unmodified opinion is a type of auditor's opinion that indicates that the financial statements are prepared according to accounting standards in all material respects. LEGAL REVIEW: N/A ATTACHMENTS: 1. FY 2024 Annual Comprehensive Financial Report 2. Auditor Report to Council & Management ACTIONS/OPTIONS: Staff recommends that the Town Council move to accept the Annual Comprehensive Financial Report for the Town of Trophy Club Fiscal Year 2024. Page 99 of 280 Page 100 of 280 Page 101 of 280 Town of Trophy Club, Texas Annual Comprehensive Financial Report For the Fiscal Year Ended September 30, 2024 Prepared by Town of Trophy Club Finance Department Page 102 of 280 Page 103 of 280 Town of Trophy Club, Texas September 30, 2024 Contents Introductory Section (Unaudited) Letter of Transmittal ...........................i-v Organizational Chart ..........................vii Elected Officials and Administrative Officers ...................ix GFOA Certificate of Achievement .......................xi Financial Section Independent Auditor’s Report ......................1 Management’s Discussion and Analysis ..................4 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position .......................13 Statement of Activities ........................15 Fund Financial Statements Balance Sheet – Governmental Funds ...................17 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ..19 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .20 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of the Governmental Funds to the Statement of Activities .........22 Statement of Net Position – Proprietary Funds ................23 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds ....24 Statement of Cash Flows – Proprietary Funds ................25 Notes to Financial Statements .....................28 Page 104 of 280 Town of Trophy Club, Texas September 30, 2024 Required Supplementary Information (Unaudited) Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund ............................68 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – PID No. 1 Fund ...........................69 Schedule of Changes in the Town’s Net Pension Liability/(Asset) and Related Ratios - Texas Municipal Retirement System .....................70 Schedule of Employer Contributions –Texas Municipal Retirement System .........72 Schedule of Changes in the Town’s Total OPEB Liability and Related Ratios – Texas Municipal Retirement System – Supplemental Death Benefits Fund .........74 Schedule of Changes in the Town’s Total OPEB Liability and Related Ratios – Retiree Health Care Plan ........................75 Combining and Individual Fund Financial Statements and Schedules (Unaudited) Nonmajor Governmental Funds Combining Balance Sheet – Nonmajor Governmental Funds .............80 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds.........................82 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Hotel Occupancy Tax ........................84 Street Maintenance Sales Tax .....................85 Court Technology .........................86 Court Security ..........................87 Recreation Programs ........................88 Park Land Dedication ........................89 Tax Increment Reinvestment Zone No. 1 ..................90 Crime Control and Prevention District ...................91 Page 105 of 280 Town of Trophy Club, Texas September 30, 2024 Discretely Presented Component Unit Balance Sheet – Trophy Club Economic Development Corporation ...........94 Reconciliation of the Balance Sheet Fund to the Statement of Net Position – Trophy Club Economic Development Corporation .......................95 Statement of Revenues, Expenditures, and Changes in Fund Balance – Trophy Club Economic Development Corporation .......................96 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of the Governmental Fund to the Statement of Activities – Trophy Club Economic Development Corporation ...............................97 Statistical Section (Unaudited) Financial Trends Net Position by Component ........................102 Changes in Net Position .........................104 Fund Balances of Governmental Funds ....................108 Changes in Fund Balances of Governmental Funds ................110 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property ............112 Direct and Overlapping Property Tax Rates ...................113 Principal Property Taxpayers .......................115 Property Tax Levies and Collections .....................116 Debt Capacity Ratios of Outstanding Debt by Type .....................117 Ratios of Net General Bonded Debt Outstanding .................118 Direct and Overlapping Governmental Activities Debt ................119 Pledged-Revenue Coverage .......................120 Demographic and Economic Information Demographic and Economic Statistics ....................121 Principal Employers ..........................122 Operating Information Full-Time Equivalent Town Government Employees by Function/Program .........124 Operating Indicators by Function/Program ...................125 Page 106 of 280 Page 107 of 280 Introductory Section (Unaudited) Page 108 of 280 Page 109 of 280 i February 18, 2025 To the Honorable Mayor, Members of the Town Council, and Citizens of the Town of Trophy Club, Texas The Finance Department of the Town of Trophy Club has prepared a comprehensive set of financial statements in strict compliance with Generally Accepted Accounting Principles (GAAP). These statements have been rigorously audited by an independent firm of certified public accountants, following the standards of Generally Accepted Auditing Standards (GAAS). We are pleased to present the Annual Comprehensive Financial Report (ACFR) for the Town of Trophy Club, Texas, for the fiscal year ended September 30, 2024. This report reflects the Town’s management representations regarding its financial position and activities. Management assumes full responsibility for the accuracy, completeness, and integrity of all information presented within this document. To support these representations, the Town’s management has established a comprehensive internal control framework. This framework is designed to both safeguard the Town’s assets against loss, theft, or misuse and ensure the accurate and reliable preparation of the Town’s financial statements in compliance with Generally Accepted Accounting Principles (GAAP). It is important to acknowledge that while internal controls are essential, they are intended to provide reasonable, rather than absolute, assurance regarding the prevention and detection of material misstatements. The Town’s internal control framework strives to achieve this balance, ensuring that the financial statements are free from material misstatement to the extent possible. Management affirms that, to the best of our knowledge and belief, this financial report is complete, accurate, and reliable in all material respects. In accordance with the Town Charter, the Town’s financial records have been meticulously prepared by the finance department and audited by Forvis Mazars, LLP, Certified Public Accountants. This Annual Comprehensive Financial Report (ACFR) is based on the results of that audit. The primary purpose of the independent audit is to provide reasonable assurance that the Town’s financial statements accurately and fairly represent, in all material respects, the financial position and activities for the fiscal year ended September 30, 2024. The independent audit included a thorough examination, on a sample basis, of evidence supporting the amounts and disclosures in the financial statements. Additionally, it involved an evaluation of the accounting principles used, significant estimates made by management, and the overall presentation of the financial statements. Upon completion of this rigorous process, the independent auditor issued unmodified opinions, affirming that the Town's financial statements for the fiscal year ended September 30, 2024, are presented in conformity with Generally Accepted Accounting Principles (GAAP). The independent auditor's report is included as the first component of the financial sections of this report. In compliance with GAAP, management is required to provide a narrative introduction, overview, and analysis of the financial statements, referred to as the Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. For ease of reference, the Town’s MD&A immediately follows the independent auditor’s report in this document. Page 110 of 280 ii Profile of the Town Founded in 1985 as Texas’ first master-planned community, the Town of Trophy Club is located in North Central Texas and has emerged as a significant hub of growth both within the state and nationally. Spanning just over 4 square miles, the Town serves a thriving population of approximately 13,666 residents. With the authority to levy property taxes on real estate within its jurisdiction, Trophy Club is characterized by a robust median household income of $193,026 and a median home value of $724,500. Since 2004, Trophy Club has operated as a Home Rule municipality under the council-manager form of government. Charter amendments ratified on May 11, 2013, affirm the Town Council’s role as the primary policy-making and legislative body, comprising the Mayor and six Council Members. The Council’s responsibilities include adopting ordinances, approving budgets, appointing boards and committees, and selecting key Town officials such as the Town Manager, Town Secretary, Municipal Judge, and Town Attorney. The Council functions on a non-partisan basis. In alignment with charter amendments adopted on May 9, 2009, Council members are elected at-large by place and serve three-year terms or until their successors are elected and qualified. Each member represents a designated Place (e.g., Place 1, Place 2, etc.). Furthermore, the Charter limits the Mayor and Council Members to a maximum of six consecutive years in full elected terms. The Town Manager is charged with implementing the policies and ordinances established by the Town Council, managing daily governmental operations, and appointing department heads to oversee the Town’s various departments. Trophy Club provides a full range of municipal services, including general government operations, public safety, street maintenance, parks and recreation, planning and zoning, code enforcement, and drainage utilities. Water and wastewater services are managed separately by Trophy Club Municipal Utility District #1, ensuring essential infrastructure support for the community. Local Economy Trophy Club is widely recognized for its rapid growth, a hallmark that has earned recognition from both the Dallas Business Journal and the Fort Worth Builders Association. Strategically situated between DFW International Airport and Alliance Airport, Trophy Club’s location offers unparalleled convenience for businesses, residents, and commuters traveling to Dallas, Denton, Las Colinas, and Fort Worth. Despite its proximity to major metropolitan areas, the Town maintains a charming small-town atmosphere, nestled in a picturesque setting. Trophy Club is celebrated for its exceptional quality of life, supported by outstanding educational institutions, recreational amenities, and two premier 18-hole golf courses, including the only course designed by the legendary Ben Hogan. The broader North Texas region thrives with a diverse economy anchored by research institutions, logistics, oil and gas, manufacturing, and industrial sectors, all supported by a robust professional services base. This economic diversity contributes to a relatively stable unemployment rate. As of September 2024, the Dallas/Fort Worth area’s unemployment rate stood at 3.9%, compared to the national average of 4.2%, according to the Bureau of Labor Statistics. Approximately half of the local workforce is engaged in management, professional, and related occupations, further reflecting the region’s economic vitality. Trophy Club has taken deliberate and strategic steps to position itself for a prosperous future within the dynamic DFW and Alliance corridor. Over the past decade, the Town has issued more than 452 building permits for high-end residential homes, underscoring its commitment to growth and development. In fiscal year 2024 alone, the Town approved 14 new residential building permits valued at $13,926,026.03. Additionally, there were 12 commercial projects completed with a total valuation of $2,778,654, along with 17 residential remodel and update projects valued at $624,500. The Town’s tax base has consistently strengthened, surpassing $3.1 billion in net taxable value in 2024. This solid foundation is further bolstered by a thriving business environment along the Highway 114 corridor. Trophy Club continues to benefit from businesses establishing a presence within its borders and professionals relocating to the area, contributing to the local workforce and economy. Page 111 of 280 iii Long-Term Financial Planning As part of its commitment to sound financial stewardship and strategic long-term planning, the Town has undertaken significant initiatives to optimize its debt structure and invest in critical infrastructure. In December 2015, the Town refunded the Trophy Club Public Improvement District #1 (PID) bonds, resulting in over $16.4 million in savings for PID residents over the life of the debt. Similarly, in August 2020, the Town refunded $3,550,000 in Certificates of Obligation Bonds, achieving $500,000 in savings over the remaining 10-year term. In FY 2023, the Town issued $7 million in debt to address long-term needs in key areas, including streets, parks, and drainage. This strategic investment reflects the Town’s proactive approach to maintaining and enhancing essential infrastructure to support current and future residents. Building on these efforts, the Town has prioritized the revamp of its Capital Improvement Plan (CIP) in FY 2024. This comprehensive update will serve as a roadmap for future infrastructure projects, ensuring that resources are allocated effectively to meet the Town’s evolving needs and sustain its high quality of life. Along with the CIP, the Town Council approved a Debt Financing Plan & Tax Rate Goal policy that anticipates future debt borrowing to address capital needs through FY 2040, all achievable within a maximum tax rate to support debt service of $0.105. Budgeting Process The Town of Trophy Club utilizes a program-based budgeting process to ensure fiscal responsibility and efficient allocation of resources. Each budget unit includes expenditures associated with services and supplies as outlined in the prior year’s budget. Personnel-related expenditures are calculated and compiled by the Finance Department. Any funding requests for new programs or expenditures beyond the base budget must be submitted as separate supplemental requests for evaluation. Capital expenditures are prioritized based on a comprehensive replacement schedule, assessed needs, and available resources, ensuring that the Town’s assets are maintained and enhanced in a sustainable manner. Revenue Projection The process of projecting revenue for the upcoming fiscal year begins early in the current fiscal year. Departments responsible for generating revenues, in collaboration with the Finance Department, develop these projections. The estimates are based on consultations with state and local agencies, trend analyses, anticipated changes in the local and regional economy, and discussions with staff members directly involved in the revenue streams. While revenue projections are initially prepared early in the budget process, they remain fluid and are refined throughout departmental budget development, with adjustments made as new information becomes available. Proposed Budget Analysis/Compilation The Finance Department compiles a preliminary departmental budget to present to the Budget Team, which includes the Town Manager and the Director of Finance. During budget discussions, department directors are required to justify and provide clarity on their budgetary needs. With revenue projections and baseline funding requirements as guiding factors, budget adjustments are made based on necessity and priority. A total recommended funding level is determined and aligned with available financial resources to ensure fiscal balance and operational efficiency. Proposed Budget Development The Town Manager prepares and submits the annual budget to the Town Secretary for the upcoming fiscal year. The proposed budget is designed to ensure that, for each fund, operating revenues and resources are at least equal to or exceed operating expenditures. The Town Manager’s budget message provides an overview of funding requirements, significant program changes, and alternative funding solutions, serving as a strategic guide for decision-making. Page 112 of 280 iv Town Council Budget Study From May through budget adoption, the Town Council conducts an in-depth review of each fund, along with supplementary materials, capital replacement schedules, and the five-year Capital Improvement Program. This process allows Council Members to evaluate budget items thoroughly and provide guidance on priorities before the final submission of the proposed budget. Capital Program As required by Section 9.08 of the Town Charter, the Town Manager prepares and submits a five-year Capital Improvement Plan (CIP) to the Council annually, no later than August 1. This program is reviewed, updated, and extended each year to reflect pending capital improvements, ongoing projects, and planned acquisitions, ensuring alignment with the Town’s long-term goals and priorities. Public Hearing/Budget Adoption Public hearings on the proposed budget and, if applicable, the tax rate are held in August and September, allowing citizens to provide formal input. Additionally, residents may attend Town Council budget work sessions from May through the adoption of the budget. Following deliberations and the public hearing(s), the Town Council adopts the budget and sets a tax rate to support approved funding levels in September. In accordance with the Town Charter, if no action is taken by the Town Council before the fi scal year-end on September 30, the prior years budget continues on a month-to-month basis until a new budget is adopted. Compilation of Adopted Budget/Budget Maintenance The adopted budget is compiled and published early in the new fiscal year, with an amended proposed budget made available for public inspection in October. Ledger accounts are prepared for the new fiscal year prior to October 1. Budget maintenance is an ongoing process carried out by both divisions/departments and the Finance Department. Expenditure reviews are conducted monthly by Finance staff to ensure spending controls. During the budget process, departments provide current-year revenue and expenditure estimates to support accurate planning. Finally, program goals, objectives, and performance measures are assessed during budget implementation to evaluate the effectiveness of activities and determine appropriate funding levels for future years. Relevant Financial Policies The Town’s Investment Policy, created by staff, was developed to comply with Chapter 2256 of the Government Code, known as the Public Funds Investment Act. This Act requires the Town of Trophy Club to adopt a written investment policy governing the management of its funds. The policy outlines the methods, procedures, and practices necessary to ensure the effective and prudent fiscal management of the Town’s resources. In recognition of its quality, the Town’s Investment Policy was awarded the Government Treasurers’ of Texas Certificate of Distinction for Investment Policy in June 2011. In April 2024, the Town Council adopted a Financial Reserves Policy, establishing new fund balance categories in alignment with Governmental Accounting Standards Board (GASB) Statement No. 54. This policy also set a minimum unassigned fund balance goal for the General Fund at 45% of annual operating expenditures, providing a strong foundation for fiscal stability. Additionally, in September 2016, the Town implemented updated purchasing policies as well as revised travel and training policies, ensuring alignment with best practices and the Town’s operational needs. Page 113 of 280 v Major Initiatives The Town Council remains dedicated to its strategic planning process, which serves as the cornerstone for identifying and achieving long-term goals and objectives. Each year, the Council convenes in strategic planning retreats to review, refine, and align its priorities with the evolving needs of the community. In FY 2024, the Town launched its new Strategic Plan for 2025–2030, a comprehensive framework designed to advance key priorities over the next five years. This plan emphasizes enhancing community development, ensuring financial sustainability, and improving the delivery of high-quality services. The Strategic Plan is fully integrated into the Town’s Business Plan and Department Work Plans, which are utilized in budget planning, resource allocation, and the implementation of services and programs. As part of its efforts to support local businesses and foster economic growth, the Town, in partnership with the Economic Development Corporation (EDC), introduced the Thrive Business Grant program. This initiative offers targeted funding to local businesses, promoting innovation, resilience, and economic vitality within the community. In addition, the Town has prioritized future growth and land use planning through the creation of a Small Area Plan for the 114 corridor. This plan will serve as a detailed roadmap for development along this key economic and transportation corridor, focusing on strategic land use, infrastructure enhancements, and opportunities for economic development. By balancing thoughtful planning with community needs, the Small Area Plan aims to ensure sustainable growth while preserving the Town’s unique character and quality of life. Awards and Acknowledgements The Government Finance Officers Association (GFOA) of the United States and Canada awarded the Town of Trophy Club the Certificate of Achievement for Excellence in Financial Reporting for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended September 30, 2023. This marks the 14th consecutive year the Town has received this prestigious recognition. To earn this award, a government must publish an ACFR that is both easily readable and efficiently organized while meeting generally accepted accounting principles (GAAP) and all applicable legal requirements. The Certificate of Achievement is valid for one year, and we believe our current ACFR continues to meet the program’s high standards. We have submitted it to the GFOA for review to determine its eligibility for another certificate. The preparation of this report is a testament to the unwavering dedication of the Finance Department staff. We extend our deepest gratitude to the entire team for their diligence and expertise. We also wish to thank the representatives of Forvis Mazars LLP, Certified Public Accountants, for their invaluable support and professional guidance. Finally, we offer special recognition to the Mayor and Town Council members for their steadfast commitment to excellence in financial stewardship. Their leadership and unwavering support have been essential in maintaining the highest standards of professionalism in the management of the Town’s finances and the successful completion of this report. Respectively submitted, Brandon Wright April Duvall Town Manager Director of Finance Page 114 of 280 Page 115 of 280 vii Page 116 of 280 Page 117 of 280 ix Page 118 of 280 Page 119 of 280 xi Page 120 of 280 Page 121 of 280 Financial Section Page 122 of 280 Page 123 of 280 Forvis Mazars, LLP is an independent member of Forvis Mazars Global Limited Independent Auditor’s Report The Honorable Mayor and Members of the Town Council Town of Trophy Club, Texas Trophy Club, Texas Opinions We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Town of Trophy Club, Texas (Town), as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Town as of September 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of our report. We are required to be independent of the Town, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a Page 124 of 280 The Honorable Mayor and Members of the Town Council Town of Trophy Club, Texas 2 substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparisons, pension, and other postemployment benefit information be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s basic financial statements. The combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Page 125 of 280 The Honorable Mayor and Members of the Town Council Town of Trophy Club, Texas 3 Other Information Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Dallas, Texas February 18, 2025 Page 126 of 280 Page 127 of 280 Town of Trophy Club, Texas Management’s Discussion and Analysis (Unaudited) Year Ended September 30, 2024 4 As management of the Town of Trophy Club, Texas (Town), we offer readers of the Town’s financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended September 30, 2024. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages i-v of this report. Financial Highlights The assets and deferred outflows of resources of the Town exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $69,360,557 (net position). The unrestricted net position, which represents the amounts available to meet the Town’s ongoing obligations to citizens and creditors, was $28,158,082.The Town’s total net position increased $2,834,579 primarily because of increases in property tax valuations and increased investment earnings.At the close of the current fiscal year, the Town’s governmental funds reported combined fund balances of $32,879,923, an increase of $3,852,921 in comparison with the prior year. Of this amount, $12,376,571, or 38%, is available for spending at the government’s discretion (unassigned fund balance). The increase in combined fund balance is primarily due to increased property tax valuations and increased investment earnings. At the end of the current fiscal year, unrestricted fund balance for the general fund was $12,376,571, or approximately 82% of total general fund expenditures.At the close of the current fiscal year, the Town’s enterprise funds reported combined net position balances of $4,082,865, an increase of $422,631 in comparison with the prior year. The increase is due primarily to operations and to transfers in from the governmental funds for debt service payments. Overview of the Financial Statements The discussion and analysis provided here are intended to serve as an introduction to the Town’s basic financial statements. The Town’s basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) the notes to financial statements. This report also includes supplementary information intended to furnish additional detail to support the basic financial statements themselves. Government-Wide Statements The government-wide financial statements are designed to provide readers with a broad overview of the Town’s finances, in a manner similar to a private-sector business. Two statements, the Statement of Net Position and the Statement of Activities, are utilized to provide this financial overview. The statement of net position presents information on all of the Town’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources. The difference between the four is reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating. Other non-financial factors, such as the Town’s property tax base and the condition of the Town’s infrastructure, need to be considered in order to assess the overall health of the Town. Page 128 of 280 Town of Trophy Club, Texas Management’s Discussion and Analysis (Unaudited) Year Ended September 30, 2024 5 The statement of activities presents information showing how the Town’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the Town that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Town include general government, police, emergency medical services, community development, parks and recreation, streets, court, council, and administration. Normally, these operations are financed by property taxes, sales taxes, and franchise fees. The business-type activities of the Town include Trophy Club Park and Storm Drainage Utility operations. The government-wide financial statements include not only the Town itself (known as the primary government), but also the legally separate component unit, Economic Development Corporation, which the Town is financially accountable. Financial information for the component unit is reported separately from the financial information presented for the primary government itself. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Town can be divided into two categories: governmental funds and proprietary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in assessing a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Town maintains thirteen individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, the debt service fund, the capital projects fund, and the PID No. 1, which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in a separate section of the report. The Town adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with this budget. Page 129 of 280 Town of Trophy Club, Texas Management’s Discussion and Analysis (Unaudited) Year Ended September 30, 2024 6 Proprietary Funds The Town’s proprietary funds are all enterprise funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Town uses an enterprise fund to account for its Trophy Club Park and Storm Drainage Utility operations. All activities associated with providing such services are accounted for in these funds, including salaries and benefits, supplies and materials, repairs and maintenance, utilities, and other operating expenses. The Town’s intent is that costs of providing the services to the general public on a continuing basis is financed through user charges in a manner similar to a private enterprise. Proprietary financial statements provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for Trophy Club Park and Storm Drainage Utility. The Storm Drainage Utility is considered to be a major fund of the Town. Component Unit The Town maintains the accounting and financial statements for one discretely presented component unit, the Economic Development Corporation, which is displayed separately on the government-wide financial statements. Notes to Financial Statements The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government-wide and fund financial statements. Other Information In addition to the basic financial statements, MD&A, and accompanying notes, this report also presents certain Required Supplementary Information (RSI). The required RSI includes a budgetary comparison schedule for the general fund and Public Improvement District No. 1 fund. In addition, it includes information concerning the Town’s progress in funding its obligations to provide pension and OPEB benefits to its employees. Required supplementary information can be found immediately after the notes to the financial statements. The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the required supplementary information on pensions and OPEB. Government-wide Overall Financial Analysis As noted earlier, net position over time may serve as a useful indicator of a government’s financial position. In the case of the Town, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $69,360,557, at the close of the most recent fiscal year. Page 130 of 280 Town of Trophy Club, Texas Management’s Discussion and Analysis (Unaudited) Year Ended September 30, 2024 7 Statement of Net Position: The following table reflects the condensed Statement of Net Position. Governmental Activities Business-type Activities Totals FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 Current and other assets $ 52,606,227 $ 51,194,650 $ 2,324,511 $ 2,030,858 $ 54,930,738 $ 53,225,508 Capital and lease assets, net 61,110,085 63,709,700 1,781,537 1,853,641 62,891,622 65,563,341 Total assets 113,716,312 114,904,350 4,106,048 3,884,499 117,822,360 118,788,849 Deferred outflows of resources 3,424,636 4,249,963 - - 3,424,636 4,249,963 Other liabilities 4,665,060 4,755,975 23,183 48,797 4,688,243 4,804,772 Long-term liabilities 46,812,277 51,094,293 - 175,468 46,812,277 51,269,761 Total liabilities 51,477,337 55,850,268 23,183 224,265 51,500,520 56,074,533 Deferred inflows of resources 385,919 438,301 - - 385,919 438,301 Net investment in capital assets 30,100,766 28,947,808 1,781,537 1,678,173 31,882,303 30,625,981 Restricted 9,320,172 8,185,798 - - 9,320,172 8,185,798 Unrestricted 25,856,754 25,732,138 2,301,328 1,982,061 28,158,082 27,714,199 Total net position $ 65,277,692 $ 62,865,744 $ 4,082,865 $ 3,660,234 $ 69,360,557 $ 66,525,978 Current and other assets increased by $1.7 million from the prior year due primarily to increased cash and investment activity. Long-term liabilities, which consist of bonds, compensated absences, net pension liability, and other postemployment benefit obligations, decreased by $4.5 million from the previous year for governmental and business-type activities combined. The decrease is primarily due to the scheduled debt service payments. A portion of the Town’s net position, $31,882,303, reflects its investment in capital assets (e.g., land, buildings, machinery, equipment, vehicles, lease assets, and infrastructure), net of accumulated depreciation and amortization and less any related outstanding debt that was used to acquire those assets. The Town uses these capital and lease assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future spending. Although the Town’s investment in capital assets is reported net of related debt, it should be noted that the resources used to repay this debt must be provided from other sources, since the capital and lease assets themselves cannot be used to liquidate these liabilities. An additional portion of the Town’s net position, $9,320,172 represents resources that are subject to external restrictions on how they may be used. As of the end of the current year, the Town’s unrestricted net position was a balance of $28,158,082. The Town’s overall net position increased $2,834,579, from the prior fiscal year. The reasons for this overall increase are discussed in the following sections for governmental activities and business-type activities. Page 131 of 280 Town of Trophy Club, Texas Management’s Discussion and Analysis (Unaudited) Year Ended September 30, 2024 8 Statement of Activities: The following table provides a summary of the Town’s changes in net position. Governmental Activities Business-type Activities Totals FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 Revenues: Program revenues: Charges for services $ 4,255,088 $ 3,821,273 $ 614,423 $ 705,922 $ 4,869,511 $ 4,527,195 Operating grants and contributions 159,362 92,029 - 31,750 159,362 123,779 Total program revenues 4,414,450 3,913,302 614,423 737,672 5,028,873 4,650,974 General revenues: Property taxes 11,858,764 11,180,838 - - 11,858,764 11,180,838 Sales and mixed beverage taxes 2,630,932 2,358,255 - - 2,630,932 2,358,255 Franchise and local taxes 1,029,212 1,016,222 - - 1,029,212 1,016,222 Occupancy tax 885,378 822,484 - - 885,378 822,484 Other revenues 721,499 313,150 150 - 721,649 313,150 Investment Income 2,095,412 1,289,627 85,289 64,244 2,180,701 1,353,871 Total general revenues 19,221,197 16,980,576 85,439 64,244 19,306,636 17,044,820 Total revenues 23,635,647 20,893,878 699,862 801,916 24,335,509 21,695,794 Expenses: General government 632,029 899,894 - - 632,029 899,894 Manager's office 486,130 782,210 - - 486,130 782,210 Town secretary 212,947 - - - 212,947 - Mayor & council 7,662 - - - 7,662 - Human resources 357,993 278,174 - - 357,993 278,174 Finance 617,969 518,064 - - 617,969 518,064 Information services 598,600 673,596 - - 598,600 673,596 Legal 138,548 159,807 - - 138,548 159,807 Municipal court 250,929 92,313 - - 250,929 92,313 Police 4,316,645 3,820,517 - - 4,316,645 3,820,517 Fire 1,901,264 1,657,640 - - 1,901,264 1,657,640 Emergency medical services 1,769,995 1,598,261 - - 1,769,995 1,598,261 Facilities management 1,501,274 1,425,387 - - 1,501,274 1,425,387 Parks and recreation 3,132,835 3,093,727 - - 3,132,835 3,093,727 Community development 606,080 552,382 - - 606,080 552,382 Tourism 382,094 653,518 - - 382,094 653,518 Public works 2,762,037 2,358,623 - - 2,762,037 2,358,623 Interest and fiscal charges on long-term debt 1,406,043 1,371,710 - - 1,406,043 1,371,710 Storm Drainage Utility - - 284,437 176,590 284,437 176,590 Trophy Club Park - - 135,419 127,025 135,419 127,025 Total expenses 21,081,074 19,935,823 419,856 303,615 21,500,930 20,239,438 Increase in net position before transfers 2,554,573 958,055 280,006 498,301 2,834,579 1,456,356 Transfers (142,625)(156,342) 142,625 156,342 - - Change in net position 2,411,948 801,713 422,631 654,643 2,834,579 1,456,356 Net Position, Beginning 62,865,744 62,064,031 3,660,234 3,005,591 66,525,978 65,069,622 Net Position, Ending $ 65,277,692 $ 62,865,744 $ 4,082,865 $ 3,660,234 $ 69,360,557 $ 66,525,978 Page 132 of 280 Town of Trophy Club, Texas Management’s Discussion and Analysis (Unaudited) Year Ended September 30, 2024 9 Governmental Activities For the year ended September 30, 2024, revenues from governmental activities totaled $23.6 million. Property tax, grants and contributions, special assessments and sales tax are the Town’s largest general revenue sources. Overall revenue increased $2.7 million or 13% from the prior year. Property taxes remain the largest source of revenue at $11.9 million in the current fiscal year. The rate charged to property tax owners has remained consistent, however, the assessed valuation has risen from approximately $2.8 billion in 2023 to $3.1 billion in the current year. Investment income increased by $806 thousand or 62% due to the impact of the market and realization of higher interest rates. All other revenue sources remained relatively stable when compared to the previous year. For the year ended September 30, 2024, expenses for governmental activities totaled $21.1 million. This represents an increase of $1.1 million or 5.7% from the prior year. The Town’s largest expense category is public safety (police, fire, and emergency medical services), which totaled $8.0 million at year-end and increased $911 thousand from prior year due primarily to workers compensation adjustments, salary increases, and overtime. General Government decreased by $268 thousand primarily due to decreased salary expenses. Manager’s Office decreased by $296 thousand primarily due to realignment of departments through the breakout of Town Secretary and Mayor & Council categories, which was previously reported with Manager's Office. All other expenses remained relatively consistent when compared to the previous year. Business-type Activities Business-type activities are shown comparing operating costs to revenues generated by related services. For the year ended September 30, 2024, charges for services by business-type activities totaled $614 thousand and represents a decrease of $91 thousand from prior. This is mostly due to decreased park activity. Total business-type activity expenses remained relatively consistent when compared to the previous year. The Storm Drainage Utility increased expenses by $108 thousand for various small equipment purchases and salary increases. The Trophy Club Park increased their expenses by $8 thousand primarily due to salary increases. Financial Analysis of the Town’s Funds As noted earlier, fund accounting is used to demonstrate and ensure compliance with finance-related legal requirements. Governmental Funds – The focus of the Town’s governmental funds is to provide information of near- term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of the Town’s net resources available for discretionary use as it represents the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the Town itself, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the Town’s Council. Page 133 of 280 Town of Trophy Club, Texas Management’s Discussion and Analysis (Unaudited) Year Ended September 30, 2024 10 At September 30, 2024, the Town’s governmental funds reported combined fund balances of $32.9 million, an increase of $3.9 million, in comparison with the prior year. Approximately 38% of this amount, $12.4 million, constitutes unassigned fund balance, which is available for spending at the Town’s discretion. The remainder of the fund balance is either nonspendable, restricted, or committed to indicate that it is: 1) not in spendable form $443 thousand; 2) restricted for particular purposes $20.0 million; or 3) committed for a particular purpose $29 thousand. Analysis of Individual Funds The general fund is the chief operating fund of the Town. At the end of the current fiscal year, unassigned fund balance of the general fund was approximately $12.4 million, while total fund balance increased to $12.8 million. As a measure of the general fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total general fund expenditures. Unassigned fund balance represents 82% of total general fund expenditures, while total fund balance represents 85 % of that same amount. The fund balance of the Town’s general fund increased by $2.4 million during the current fiscal year. This increase is due to higher property valuations, the impact of the market and realization of higher interest rates and sales tax revenue coming in higher than anticipated. The debt service fund had an ending fund balance of $251 thousand at September 30, 2024, an increase of $45 thousand when compared to the previous year. This increase is due to higher property valuations, the impact of the market and realization of higher interest rates. During the year, the fund recorded total principal and interest payments of $2.7 million and property tax revenue of $2.8 million. The fund also recorded $178 thousand in transfers to other funds related to debt service payments. The capital projects fund had an ending fund balance of $10.7 million. The capital projects fund increased by $90 thousand when compared to the previous year. The increase was due to increased investment income. The PID No. 1 fund reflected an ending fund balance of $4.2 million. The fund balance increased $120 thousand, which is a result of special assessments and investment income exceeding debt service expenditures. Proprietary Funds – The Town’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Net position in the Town’s major proprietary fund, the Storm Drainage Utility fund, totaled $3.5 million, an increase of $390 thousand from prior year. Unrestricted net position at the close of the fiscal year for the Town’s storm drainage utility fund amounted to $1.9 million. Total net investment in capital assets was $1.6 million. Page 134 of 280 Town of Trophy Club, Texas Management’s Discussion and Analysis (Unaudited) Year Ended September 30, 2024 11 General Fund Budgetary Highlights Total budgeted revenues of $14,658,938 were less than actual revenues of $17,641,901 resulting in a revenue variance of $2,982,963. The variance was primarily the result of greater than estimated revenues from sales tax, intergovernmental revenues, and charges for services. Sales tax was over budget as the economy continues to recover from the pandemic. Intergovernmental revenue increased $682,064, primarily due increases in both the fire assessments related to the Public Improvement District and transfers from the Municipal Utility District. Charges for services were more than estimated due to the inclusion of sanitation charges received during the year, previously netted with expenses. Total budgeted expenditures of $17,444,903 were more than actual expenditures of $15,143,222, resulting in a expenditure variance of $2,301,681. The variance in total expenditures primarily related to facilities management and capital outlay expenditures for unbudgeted expenditures related to emergency repairs/replacement. Additionally, the manager's office department budgeted for capital projects that ultimately did not occur in the current fiscal year. Capital and Lease Assets As of the end of the year, the Town’s governmental activities funds had invested $61,110,085 in a variety of capital and lease assets and infrastructure, net of accumulated depreciation and amortization. The Town’s business-type activities funds had invested $1,781,537 in a variety of capital assets and infrastructure, net of accumulated depreciation. This investment in capital assets includes land, buildings, vehicles, machinery and equipment, storm drainage system, and infrastructure. Governmental Activities Business-type Activities Totals FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 Land $ 10,487,119 $ 10,487,119 $ - $ - $ 10,487,119 $ 10,487,119 Construction in progress 2,197,624 2,197,624 - - 2,197,624 2,197,624 Buildings 7,693,922 8,080,711 - - 7,693,922 8,080,711 Improvements other than buildings 29,093,899 30,882,200 161,194 172,480 29,255,093 31,054,680 Machinery and equipment 798,046 712,808 63,554 73,289 861,600 786,097 Vehicles 1,034,858 1,108,397 - - 1,034,858 1,108,397 Water system 2,985,821 3,161,697 - - 2,985,821 3,161,697 Infrastructure 6,758,902 6,982,134 1,556,789 1,607,872 8,315,691 8,590,006 Lease Assets - Equipment 59,894 97,010 - - 59,894 97,010 Totals $ 61,110,085 $ 63,709,700 $ 1,781,537 $ 1,853,641 $ 62,891,622 $ 65,563,341 Major capital asset events during the current year include the following: Purchase of new vehicles for police.Improvements related to the Inverness Drive drainage system Purchase of new equipment for various departments across the Town More detailed information about the Town’s capital and lease assets is presented in the Note 4 to the financial statements. Page 135 of 280 Town of Trophy Club, Texas Management’s Discussion and Analysis (Unaudited) Year Ended September 30, 2024 12 Long-Term Debt The Town’s outstanding general obligation bonds, certificate of obligation bonds, and special assessment bonds, net of all premiums and discounts decreased by $3.9 million for governmental activities and decreased by $175 thousand for business-type activities, from the prior year. Governmental Activities Business-type Activities Totals FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 General obligation bonds $ 5,165,000 $ 5,890,000 $ - $ - $ 5,165,000 $ 5,890,000 Certificates of obligation 16,800,000 18,040,000 - 175,000 16,800,000 18,215,000 Special assessment bonds 18,227,000 19,776,000 - - 18,227,000 19,776,000 Premiums on bonds 3,093,541 3,423,086 - 468 3,093,541 3,423,554 Leases payable 49,294 85,745 - - 49,294 85,745 Totals $ 43,334,835 $ 47,214,831 $ - $ 175,468 $ 43,334,835 $ 47,390,299 More detailed information about the Town’s long-term liabilities is presented in Note 5 to the financial statements. Economic Factors and Next Year’s Budget and Rates The Town of Trophy Club’s land use remains predominantly residential, comprising approximately 90% of the area, with a smaller commercial component making up about 10%. Both residential and commercial development within the Town is largely built out. In fiscal year 2024, the Town issued 14 residential construction permits and one new commercial permit. Looking ahead, staff estimates future development will be limited, with projections of 30–50 additional residential permits and 3–4 large commercial permits. The Town’s fiscal year 2025 budget reflects an increase in total property tax revenue of $904,831, or 8.7%, compared to the fiscal year 2024 budget. Of this amount, $44,835 is attributed to new property added to the tax roll. Key budgeted capital expenditures for fiscal year 2025 include: Replacement of fleet vehicles Inverness storm drainage improvements Bobcat traffic improvements Dedicated pickleball courts at Harmony Park Phase II of the pool remodel project General Fund revenues for fiscal year 2025 are budgeted to increase by 12.80% over estimated revenues for fiscal year 2024, while expenditures are projected to rise by 14.30% over fiscal year 2024 estimates. Despite these changes, the fiscal year 2025 budget maintains the ad valorem tax rate at $0.415469 per $100 of assessed value, ensuring stability for taxpayers while supporting the Town’s strategic initiatives and operational needs. Contacting the Town’s Financial Management This financial report is designed to provide a general overview of the Town’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Town of Trophy Club Director of Finance, 1 Trophy Wood Drive, Trophy Club, Texas, 76262. This information can also be accessed on the Town of Trophy Club’s website at www.trophyclub.org. Page 136 of 280 Page 137 of 280 Basic Financial Statements Page 138 of 280 Page 139 of 280 See Notes to Financial Statements 13 Town of Trophy Club, Texas Statement of Net Position September 30, 2024 Primary Government Component Unit Governmental Activities Business-Type Activities Total Economic Development Corporation Assets and Deferred Outflows of Resources Assets Cash and cash equivalents $30,499,346 $2,284,095 $32,783,441 $2,190,353 Investments 6,158,244 -6,158,244 - Taxes receivable, net 566,207 -566,207 129,550 Special assessments receivable 15,080,873 -15,080,873 - Receivables, net 74,826 38,536 113,362 - Due from other governments 7,505 -7,505 - Due from primary government ---35,105 Notes receivable ---149,250 Prepaid and other assets 2,950 1,880 4,830 - Lease receivable 216,276 -216,276 - Capital assets not being depreciated 12,684,743 -12,684,743 2,538,765 Capital and lease assets, net of accumulated depreciation/amortization 48,425,342 1,781,537 50,206,879 236,642 Total assets 113,716,312 4,106,048 117,822,360 5,279,665 Deferred Outflows of Resources Pension related 1,756,778 -1,756,778 - OPEB related 38,612 -38,612 - Deferred charge on refunding 1,629,246 -1,629,246 - Total deferred outflows of resources 3,424,636 -3,424,636 - Total assets and deferred outflows of resources $117,140,948 $4,106,048 $121,246,996 $5,279,665 Page 140 of 280 See Notes to Financial Statements 14 Town of Trophy Club, Texas Statement of Net Position September 30, 2024 Primary Government Component Unit Governmental Activities Business-Type Activities Total Economic Development Corporation Liabilities, Deferred Inflows of Resources and Net Position Liabilities Accounts payable $926,916 $21,872 $948,788 $8,221 Accrued liabilities 316,565 1,311 317,876 - Unearned revenue 3,088,232 -3,088,232 - Due to component unit 35,105 -35,105 - Accrued interest payable - bonds 298,242 -298,242 5,700 Noncurrent liabilities: Due within one year: Bonds payable 3,912,000 -3,912,000 125,000 Leases payable 37,299 -37,299 - Compensated absences 366,899 -366,899 - Due in more than one year: Bonds payable 39,373,541 -39,373,541 1,580,456 Leases payable 11,995 -11,995 - Compensated absences 40,767 -40,767 - Total OPEB liability 307,271 -307,271 - Net pension liability 2,762,505 -2,762,505 - Total liabilities 51,477,337 23,183 51,500,520 1,719,377 Deferred Inflows of Resources Pension related 55,764 -55,764 - OPEB related 133,677 -133,677 - Lease related 196,478 -196,478 - Total deferred inflows of resources 385,919 -385,919 - Net Position Net investment in capital assets 30,100,766 1,781,537 31,882,303 1,069,951 Restricted: Municipal court 84,077 -84,077 - Debt service 4,454,115 -4,454,115 97,127 Economic development ---2,393,210 Public safety 322,571 -322,571 - Street maintenance 508,672 -508,672 - Tourism 3,317,903 -3,317,903 - Parks 632,834 -632,834 - Unrestricted 25,856,754 2,301,328 28,158,082 - Total net position 65,277,692 4,082,865 69,360,557 3,560,288 Total liabilities, deferred inflows of resources and net position $117,140,948 $4,106,048 $121,246,996 $5,279,665 Page 141 of 280 See Notes to Financial Statements 15 Town of Trophy Club, Texas Statement of Activities Year Ended September 30, 2024 Program Revenues Component Units Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Primary Government Governmental activities: General government $632,029 $321,820 $-$- Manager's office 486,130 --- Town secretary 212,947 --- Mayor & council 7,662 --- Human resources 357,993 --- Finance 617,969 --- Information services 598,600 --- Legal 138,548 --- Municipal court 250,929 349,697 -- Police 4,316,645 161,706 12,700 - Fire 1,901,264 1,747,461 146,662 - Emergency medical services 1,769,995 162,587 -- Facilities management 1,501,274 --- Parks and recreation 3,132,835 355,367 -- Community development 606,080 10,250 -- Tourism 382,094 --- Sanitation -1,141,025 -- Public works 2,762,037 5,175 -- Interest and fiscal charges 1,406,043 --- Total governmental activities 21,081,074 4,255,088 159,362 - Business-type Activities: Storm Drainage Utility 284,437 432,307 -- Trophy Club Park 135,419 182,116 -- Total business-type activities 419,856 614,423 -- Total primary government $21,500,930 $4,869,511 $159,362 $- Component Unit Economic Development Corporation 167,937 --- Total component unit $167,937 $-$-$- General Revenues Taxes: Property taxes Sales and mixed beverage taxes Franchise and local taxes Occupancy taxes Other revenues Investment income Transfers Total general revenues and transfers Change in net position Net position, beginning of year Net position, end of year Page 142 of 280 See Notes to Financial Statements 16 Net (Expense) Revenue and Changes in Net Position Primary Government Component Unit Governmental Activities Business-type Activities Total Economic Development Corporation $(310,209)$-$(310,209)$- (486,130)-(486,130)- (212,947)-(212,947)- (7,662)-(7,662)- (357,993)-(357,993)- (617,969)-(617,969)- (598,600)-(598,600)- (138,548)-(138,548)- 98,768 -98,768 - (4,142,239)-(4,142,239)- (7,141)-(7,141)- (1,607,408)-(1,607,408)- (1,501,274)-(1,501,274)- (2,777,468)-(2,777,468)- (595,830)-(595,830)- (382,094)-(382,094)- 1,141,025 -1,141,025 - (2,756,862)-(2,756,862)- (1,406,043)-(1,406,043)- (16,666,624)-(16,666,624)- -147,870 147,870 - -46,697 46,697 - -194,567 194,567 - $(16,666,624)$194,567 $(16,472,057)$- (167,937) $(167,937) 11,858,764 -11,858,764 - 2,630,932 -2,630,932 865,900 1,029,212 -1,029,212 - 885,378 -885,378 - 721,499 150 721,649 - 2,095,412 85,289 2,180,701 88,512 (142,625)142,625 -- 19,078,572 228,064 19,306,636 954,412 2,411,948 422,631 2,834,579 786,475 62,865,744 3,660,234 66,525,978 2,773,813 $65,277,692 $4,082,865 $69,360,557 $3,560,288 Page 143 of 280 See Notes to Financial Statements 17 Town of Trophy Club, Texas Balance Sheet Governmental Funds September 30, 2024 General Debt Service Capital Projects PID No 1 Assets Cash and cash equivalents $16,138,061 $251,146 $4,656,683 $4,256,245 Investments --6,158,244 - Taxes receivable, net 334,795 13,809 -- Special assessment receivable ---15,080,873 Accounts receivable, net 74,826 --- Leases receivable 216,276 --- Due from other governments 7,505 --- Prepaid and other assets 2,950 --- Advances from other funds 439,779 --- Total assets $17,214,192 $264,955 $10,814,927 $19,337,118 Liabilities, Deferred Inflows of Resources and Fund Balances Liabilities Accounts payable $724,344 $-$118,657 $- Accrued liabilities 305,812 --- Unearned revenue 3,088,232 --- Due to component unit 11,700 --- Advances to other funds ---53,276 Total liabilities 4,130,088 -118,657 53,276 Deferred Inflows of Resources Unavailable revenue - property taxes 43,009 13,809 -- Unavailable revenue - special assessments ---15,080,873 Unavailable revenue - property liens 25,317 --- Leases related 196,478 --- Total deferred inflows of resources 264,804 13,809 -15,080,873 Fund Balances Nonspendable: Prepaid items 2,950 --- Long-term interfund advances 439,779 --- Restricted for: Debt service -251,146 -4,202,969 Capital projects --10,696,270 - Municipal court ---- Public safety ---- Street maintenance ---- Tourism ---- Parks ---- Committed for: Recreation programs ---- Unassigned 12,376,571 --- Total fund balances 12,819,300 251,146 10,696,270 4,202,969 Total liabilities, deferred inflows of resources and fund balances $17,214,192 $264,955 $10,814,927 $19,337,118 Page 144 of 280 See Notes to Financial Statements 18 Nonmajor Governmental Funds Total Governmental Funds $5,197,211 $30,499,346 -6,158,244 217,603 566,207 -15,080,873 -74,826 -216,276 -7,505 -2,950 -439,779 $5,414,814 $53,046,006 $83,915 $926,916 10,753 316,565 -3,088,232 23,405 35,105 386,503 439,779 504,576 4,806,597 -56,818 -15,080,873 -25,317 -196,478 -15,359,486 -2,950 -439,779 -4,454,115 15,295 10,711,565 84,077 84,077 322,571 322,571 508,672 508,672 3,317,903 3,317,903 632,834 632,834 28,886 28,886 -12,376,571 4,910,238 32,879,923 $5,414,814 $53,046,006 Page 145 of 280 Town of Trophy Club, Texas Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position September 30, 2024 See Notes to Financial Statements 19 Amounts reported for governmental activities in the statement of net position are different because: Total fund balance per balance sheet $ 32,879,923 Capital and lease assets used in governmental activities are not current financial resources and therefore are not reported in the governmental funds. 61,110,085 Other long-term assets less related uncollectibles are not available to pay for current period expenditures and therefore are reported as unavailable revenues in the governmental funds. 15,163,008 Accrued interest payable on long-term debt does not require current financial resources and therefore is not reported as a liability in the balance sheet of governmental funds.(298,242) Long-term liabilities, including bonds payable, leases payable, net pension liability, and total OPEB liability (and the related deferred inflows and deferred outflows) are not due and payable in the current period and therefore are not reported as liabilities, deferred outflows or deferred inflows in the governmental funds. Long-term liabilities consist of: General obligation bonds payable $(5,165,000) Certificate of obligation bonds payable (16,800,000) Special Assessment Bonds (18,227,000) Deferred charge on refunding 1,629,246 Unamortized premiums on bonds (3,093,541) Leases payable (49,294) Net pension liability (2,762,505) Total other postemployment benefit (OPEB) liability (307,271) Deferred outflows of resources – pension 1,756,778 Deferred outflows of resources – OPEB 38,612 Deferred inflows of resources – pension (55,764) Deferred inflows of resources – OPEB (133,677) Accrued compensated absences (407,666) (43,577,082) Net position of governmental activities $ 65,277,692 Page 146 of 280 See Notes to Financial Statements 20 Town of Trophy Club, Texas Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended September 30, 2024 General Debt Service Capital Projects PID No 1 Revenues Property tax $9,004,625 $2,846,453 $-$- Sales and mixed beverage taxes 1,788,866 --- Franchise and local taxes 1,029,212 --- Occupancy tax ---- Special assessments ---2,275,465 License and permits 356,502 --- Intergovernmental 1,877,504 --- Charges for services 1,653,680 --- Fines and fees 479,580 --- Lease revenue 105,010 --- Interest revenue - leases 15,712 --- Investment income 976,294 81,141 595,834 257,429 Other revenue 354,916 5,227 -- Total revenues 17,641,901 2,932,821 595,834 2,532,894 Expenditures Current: General government 121,571 -20,125 93,153 Manager's office 473,438 --- Town secretary 208,835 --- Mayor & council 7,662 --- Human resources 351,267 --- Finance 608,058 --- Information services 572,452 --- Legal 138,548 --- Municipal court 248,929 --- Police 3,913,375 --- Fire 1,834,130 --- Emergency medical services 1,646,247 --- Facilities management 1,501,274 --- Parks and recreation 2,421,524 --- Community development 510,709 --- Tourism ---- Public works 328,921 --- Debt service: Principal 6,002 1,965,000 -1,549,000 Interest and fiscal charges 1,696 745,304 -770,852 Capital Outlay 248,584 -486,044 - Total expenditures 15,143,222 2,710,304 506,169 2,413,005 Excess (Deficiency) of Revenues Over (Under) Expenditures 2,498,679 222,517 89,665 119,889 Other Financing Sources (Uses) Transfers in 151,500 --- Transfers out (255,487)(177,625)-- Sale of general capital assets 8,274 --- Total other financing sources (uses)(95,713)(177,625)-- Net Change in Fund Balances 2,402,966 44,892 89,665 119,889 Fund Balances, Beginning of Year 10,416,334 206,254 10,606,605 4,083,080 Fund Balances, End of Year $12,819,300 $251,146 $10,696,270 $4,202,969 Page 147 of 280 See Notes to Financial Statements 21 Nonmajor Governmental Funds Total Governmental Funds $-$11,851,078 842,066 2,630,932 -1,029,212 885,378 885,378 -2,275,465 -356,502 12,700 1,890,204 8,101 1,661,781 26,383 505,963 -105,010 -15,712 184,714 2,095,412 243,721 603,864 2,203,063 25,906,513 -234,849 -473,438 -208,835 -7,662 -351,267 -608,058 -572,452 -138,548 2,000 250,929 138,177 4,051,552 -1,834,130 -1,646,247 -1,501,274 390 2,421,914 67,735 578,444 376,841 376,841 288,375 617,296 30,449 3,550,451 731 1,518,583 241,843 976,471 1,146,541 21,919,241 1,056,522 3,987,272 255,487 406,987 (116,500)(549,612) -8,274 138,987 (134,351) 1,195,509 3,852,921 3,714,729 29,027,002 $4,910,238 $32,879,923 Page 148 of 280 Town of Trophy Club, Texas Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended September 30, 2024 See Notes to Financial Statements 22 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balance - total governmental funds $ 3,852,921 Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation and amortization expense. This is the amount by which capital outlay exceeds depreciation and amortization in the current period. Capital outlay expenditures $ 976,471 Depreciation and amortization expense (3,563,625) (2,587,154) The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to decrease net position. Loss on sale of assets (12,461) Certain revenues in the government-wide statement of activities that do/(do not) provide current financial resources and (are)/are not reported as revenues in the governmental funds. This amount is the net change in deferred inflows of resources.(2,266,678) The issuance of long-term debt (e.g. bond proceeds) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. Amortization of bond premium 329,545 Principal amount of debt paid to bondholders and lessors 3,550,451 Net change in accrued interest payable 83 Amortization of deferred charge on refunding (217,088) 3,662,991 Some expenditures reported in the statement of revenues, expenditures, and changes in fund balances do/(do not) require the use of current financial resources but (are)/are not reported as expenses in the statement of activities. This adjustment is to reflect the net change in accrued compensated absences.(80,501) Current year OPEB expenditures are reported on the fiscal year basis in the governmental statement of revenues, expenditures and changes in fund balance and as actuarially determined in the government-wide statement of activities. These differences are reflected in total OPEB liability and related deferred outflows and inflows of resources balances.(2,151) Current year pension expenditures are reported on the fiscal year basis in the governmental statement of revenues, expenditures and changes in fund balance and as actuarially determined in the government-wide statement of activities. These differences are reflected in net pension liability and related deferred outflows and inflows of resources balances.(155,019) Change in net position of governmental activities $ 2,411,948 Page 149 of 280 See Notes to Financial Statements 23 Town of Trophy Club, Texas Statement of Net Position Proprietary Funds September 30, 2024 Nonmajor Fund Storm Drainage Utility Trophy Club Park Total Assets Current assets Cash and cash equivalents $1,891,667 $392,428 $2,284,095 Accounts receivable, net 38,536 -38,536 Prepaid items -1,880 1,880 Total current assets 1,930,203 394,308 2,324,511 Noncurrent assets Capital assets: Net depreciable capital assets 1,556,789 224,748 1,781,537 Total noncurrent assets 1,556,789 224,748 1,781,537 Total assets 3,486,992 619,056 4,106,048 Liabilities Current liabilities Accounts payable 20,880 992 21,872 Accrued liabilities 1,273 38 1,311 Total liabilities 22,153 1,030 23,183 Net Position Net investment in capital assets 1,556,789 224,748 1,781,537 Unrestricted 1,908,050 393,278 2,301,328 Total net position $3,464,839 $618,026 $4,082,865 Page 150 of 280 See Notes to Financial Statements 24 Town of Trophy Club, Texas Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds Year Ended September 30, 2024 Nonmajor Fund Storm Drainage Utility Trophy Club Park Total Operating Revenues Charges for services $432,307 $182,266 $614,573 Total operating revenues 432,307 182,266 614,573 Operating Expenses Salaries and benefits 63,793 46,892 110,685 Supplies and materials -1,218 1,218 Repairs and maintenance 8,350 8,892 17,242 Utilities 5,545 5,657 11,202 Contractual services 154,337 51,739 206,076 Depreciation 51,083 21,021 72,104 Total operating expenses 283,108 135,419 418,527 Operating Income 149,199 46,847 196,046 Nonoperating Revenues (Expenses) Investment income 84,344 945 85,289 Interest expense (1,329)-(1,329) Total nonoperating revenues (expenses)83,015 945 83,960 Income Before Transfers 232,214 47,792 280,006 Transfers in 177,625 -177,625 Transfers out (20,000)(15,000)(35,000) Change in Net Position 389,839 32,792 422,631 Net Position, Beginning of Year 3,075,000 585,234 3,660,234 Net Position, End of Year $3,464,839 $618,026 $4,082,865 Page 151 of 280 Town of Trophy Club, Texas Statement of Cash Flows Proprietary Funds Year Ended September 30, 2024 See Notes to Financial Statements 25 Business-type Activities Nonmajor Fund Storm Drainage Trophy Utility Club Park Total Cash Flows from Operating Activities Receipts from customers and users $ 429,874 $ 182,266 $ 612,140 Payments to suppliers and service providers (175,716)(87,914)(263,630) Payments to employees for salaries and benefits (62,130)(46,854)(108,984) Net cash provided by operating activities 192,028 47,498 239,526 Cash Flows from Noncapital Financing Activities Transfers to other funds (20,000)(15,000)(35,000) Transfers from other funds 177,625 - 177,625 Net cash provided by (used for) noncapital financing activities 157,625 (15,000) 142,625 Cash Flows from Capital and Related Financing Activities Interest paid on capital debt (2,624) - (2,624) Principal paid on capital debt (175,000) - (175,000) Net cash used for capital and related financing activities (177,624) - (177,624) Cash Flows from Investing Activities Interest on investments 84,344 945 85,289 Net cash provided by investing activities 84,344 945 85,289 Net Increase in Cash and Cash Equivalents 256,373 33,443 289,816 Cash and Cash Equivalents, Beginning 1,635,294 358,985 1,994,279 Cash and Cash Equivalents, Ending $ 1,891,667 $ 392,428 $ 2,284,095 Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating income $ 149,199 $ 46,847 $ 196,046 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation expense 51,083 21,021 72,104 Changes in operating assets and liabilities: (Increase) Decrease in: Accounts receivable (2,433) - (2,433) Prepaid items - (1,404)(1,404) Increase (Decrease) in: Accounts payable (7,484)(19,004)(26,488) Accrued liabilities 1,663 38 1,701 Net cash provided by operating activities $ 192,028 $ 47,498 $ 239,526 Page 152 of 280 Notes to Financial Statements Page 153 of 280 Page 154 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 28 Note 1.Summary of Significant Accounting Policies The Town of Trophy Club (Town) is a “home rule town” incorporated in 1985. The Town operates under a Council-Manager form of government and provides the following services as authorized by its charter: public safety (police and emergency medical services), parks, public works (public improvements, streets, planning, and zoning), and general administrative services. The financial statements of the Town have been prepared in conformity with accounting principles generally accepted in the United States of America, as applied to government units (hereinafter referred to as generally accepted accounting principles (GAAP)). The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The Town’s significant accounting policies are described below. Description of Government-Wide Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. The Town currently has no fiduciary activities. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external customers for support. Likewise, the primary government is reported separately from a legally separate component unit for which the primary government is financially accountable. Financial Reporting Entity The Town of Trophy Club is a municipal corporation governed by an elected mayor and a six- member council. The accompanying financial statements present the government and its component units, entities for which the government is considered financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government’s operations. Thus, blended component units are appropriately presented as funds of the primary government. The discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is both legally and substantively separate from the primary government. Public Improvement District (PID) No. 1 On May 7, 2007, the Trophy Club Town Council approved Resolution 2007-08 authorizing and providing for the creation of a Public Improvement District. Trophy Club PID No.1 consists of approximately 609.68 acres within the corporate limits of the Town of Trophy Club. This District was created in accordance with Chapter 372 of the Texas Local Government Code. The PID issued refunding bonds in December 2015, with the approval of Town Council. The Town Council must review and update the service plan annually for the purpose of determining the annual budget for the PID No. 1. In addition, the PID No. 1 exclusively or almost exclusively benefits the primary government. The PID No. 1 is reported as a major special revenue fund and does not issue separate financial statements. Page 155 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 29 Tax Increment Reinvestment Zone No. 1 (TIRZ No. 1) The Tax Increment Reinvestment Zone No. 1 is governed by a board appointed by the Town’s Council. The Town can impose its will on the TIRZ No. 1 and affect the day-to-day operations of the TIRZ No. 1 by removing appointed board members at will. The TIRZ No. 1 is funded by revenues generated through tax increment financing. Total debt outstanding is to be paid entirely with resources of the Town. Therefore, per GASB 14 paragraph 32, the primary government has an obligation to provide support to the TIRZ No. 1 (a financial burden). The TIRZ No. 1 is reported as a nonmajor special revenue fund and does not issue separate financial statements. Crime Control and Prevention District The Crime Control and Prevention District (CCPD) was formed under Chapter 363 of the Texas Local Government Code, the Crime Control and Prevention Act. The CCPD is organized exclusively to act on behalf of the Town to finance crime control within the Town. The CCPD is governed by a seven member board appointed by the Town Council. The annual budget and issuance of debt must be approved by the Town Council. The CCPD provides services entirely, or almost entirely to the primary government. The CCPD is reported as a nonmajor special revenue fund and does not issue separate financial statements. Discretely Presented Component Unit Economic Development Corporation The Economic Development Corporation (EDC) serves all citizens of the Town and is governed by a board appointed by the Town’s elected council. The Town can impose its will on the EDC and affect the day-to-day operations of the EDC by removing appointed board members at will. The scope of public service of the EDC benefits the Town and its citizens and is operated within the geographic boundaries of the Town. Since the EDC’s governing body is not substantively the same as the governing body of the primary government, does not provide services entirely, or almost entirely to the primary government, nor does it maintain debt of any type that are repaid using Town resources, it has been reported as a discretely presented component unit. Separate financial statements for the EDC component unit are not prepared. Basis of Presentation – Government-Wide Financial Statements While separate government-wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds, while business-type activities incorporate data from the Town’s enterprise funds. Separate financial statements are provided for governmental funds and proprietary funds. As discussed earlier, the Town has one discretely presented component unit. It is shown in a separate column in the government-wide financial statements. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments in lieu of taxes where the amounts are reasonably equivalent in value to the interfund services provided, and other charges between various other functions of the Town. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Page 156 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 30 Basis of Presentation – Fund Financial Statements The fund financial statements provide information about the Town’s funds, including its blended component units. Separate statements for each fund category—governmental and proprietary are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements. The Town reports the following major governmental funds: General Fund – The General Fund is the main operating fund of the Town. This fund is used to account for all financial resources not accounted for in other funds. All general tax revenues and other receipts that are not restricted by law or contractual agreement to some other funds are accounted for in this fund. General operating expenditures, fixed charges and capital improvement costs that are not paid through other funds are paid from the General Fund. Debt Service Fund – The Debt Service Fund is used to account for the accumulation of financial resources for the payment of principal, interest and related costs on long-term debt paid primarily from taxes levied by the Town. The fund balance of the Debt Service Fund is restricted to signify the amounts that are restricted exclusively for debt service expenditures. Capital Projects Fund – The Capital Projects Fund is used to account for funds received and expended for acquisition and construction of infrastructure and other capital assets. Public Improvement District (PID) No. 1 – This fund accounts for bond proceeds, assessments and related debt associated with the issuance of bonds issued by the Town for the Public Improvement District. The Town reports the following major enterprise fund: Storm Drainage Utility Fund – The storm drainage utility fund accounts for the storm drainage utility fee designated for the maintenance of the Town’s storm drainage system. During the course of operations, the Town has activity between funds for various purposes. Any residual balances outstanding at year end are reported as due from/to other funds and advances to/from other funds. Further, certain activity occurs during the year involving transfers of resources between funds reported at gross amounts as transfers in/out. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the funds included in governmental activities (i.e., the governmental funds) are eliminated so that only the net amount is included as internal balances in the governmental activities column. Similarly, balances between the funds included in business-type activities (i.e., the enterprise funds) are eliminated so that only the net amount is included as internal balances in the business-type activities column. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column. Similarly, balances between the funds included in business-type activities are eliminated so that only the net amount is included as transfers in the business-type activities column. Page 157 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 31 Measurement Focus and Basis of Accounting The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of recognition in the financial statements of various kinds of transactions or events. The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when they have been earned and they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service principal and interest expenditures on general long-term debt, including lease liabilities, as well as expenditures related to compensated absences, and claims and judgments, and postemployment benefits are recognized later based on specific accounting rules applicable to each, generally when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and financing through leases are reported as other financing sources. Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source (within 1 year of year-end). All other revenue items are considered to be measurable and available only when cash is received by the Town. Budgetary Information Budgetary Basis of Accounting Annual budgets are adopted on a basis consistent with Generally Accepted Accounting Principles (GAAP) for the general, PID No. 1, hotel occupancy tax, street maintenance sales tax, court technology, court security, recreation programs, park land dedication, crime control and prevention district, and TIRZ No. 1 funds. The capital projects fund is appropriated on a project-length basis. The grants fund does not have appropriated budgets since other means control the use of these resources (e.g., grant awards) and sometimes span a period of more than one fiscal year. The original budget is adopted by the Town Council prior to the beginning of the year. The legal level of control as defined by the Town Charter is the fund level. No funds can be transferred or added which affect the total fund expenditures without Town Council approval. Page 158 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 32 Appropriations in all budgeted funds lapse at the end of the fiscal year even if they have related encumbrances. Encumbrances are commitments related to unperformed (executory) contracts for goods or services (i.e., purchase orders, contracts, and commitments). Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. While all appropriations and encumbrances technically lapse at year end, valid outstanding encumbrances (those for which performance under the executory contract is expected in the next year) are reappropriated and become part of the subsequent year’s budget pursuant to state regulations, and the encumbrances are automatically reestablished in the next year. Deposits and Investments The Town’s cash and cash equivalents includes cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. Because the Town, at its option, can withdraw funds within a twenty-four hour period from TexPool and Texas Class, these investments are considered to be cash equivalents. State statutes authorize the Town to invest in: (1) obligations of the United States or its agencies and instrumentalities; (2) direct obligations of the State of Texas or its agencies; (3) other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the State of Texas or the United States; (4) obligations of states, agencies, counties, cities, and other political subdivisions of any state having been rated as to investment quality by a nationally recognized investment rating firm and having received a rating of not less than A or its equivalent; (5) certificates of deposit by state and national banks domiciled in this state that are: (A) guaranteed or insured by the Federal Deposit Insurance Corporation, or its successor; or, (B) secured by obligations that are described by (1) – (4); or, (6) fully collateralized direct repurchase agreements having a defined termination date, secured by obligations described by (1), pledged with third party selected or approved by the Town, and placed through a primary government securities dealer. The Town’s investments are governed by the same state statutes. All investments are recorded at fair value based on quoted market prices or amortized cost. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties. Receivables and Interfund Transactions Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the year are referred to as either “interfund receivables/payables” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds” in the fund financial statements. If the transactions are between the primary government and its component unit, these receivables and payables are classified as “due to/from component unit/primary government.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds are offset by a nonspendable fund balance account in the applicable governmental fund to indicate they are not available for appropriation and are not expendable available financial resources. All trade receivables are shown net of any allowance for uncollectible amounts. Page 159 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 33 Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. Capital and Lease Assets Capital and lease assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities column in the government-wide financial statements. Capital and lease assets are defined by the Town as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. As the Town constructs or acquires capital assets each period, they are capitalized and reported at historical cost. The reported value excludes normal maintenance and repairs, which are amounts spent in relation to capital assets that do not increase the asset’s capacity or efficiency or increase its estimated useful life. Donated capital assets are recorded at acquisition value at the date of donation. Acquisition value is the price that would be paid to acquire an asset with equivalent service potential on the date of the donation. Land and construction in progress are not depreciated. The other property, plant, equipment, and infrastructure of the Town are depreciated/amortized using the straight-line method over the following estimated useful lives or lease term, whichever is shorter: Buildings 30 Years Improvements other than buildings 10-30 Years Improvements other than buildings (streets)30 Years Machinery and equipment 7-15 Years Vehicles 5-10 Years Water system 25 Years Infrastructure (storm drainage system)40 Years Page 160 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 34 Lease Receivable The Town is a lessor of its multiple water towers and recognizes a related lease receivable and a deferred inflow of resources. At the commencement of a lease, the Town initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. The Town monitors changes in circumstances that would require a remeasurement of its leases and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position includes a separate section for deferred outflows of resources. Deferred outflows of resources represent a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Town has three items that qualify for reporting in this category. The three items are the deferred charge on refunding reported in the government-wide statement of net position, and deferred amounts related to pension and OPEB. The deferred charge on refunding resulted from the difference between the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The deferred amounts related to pension and OPEB relate to contributions after the measurement date, changes in actuarial assumptions, the difference in expected and actual economic experience, and difference between projected and actual investment earnings. In addition to liabilities, the statement of financial position includes a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Town has four items that qualify for reporting in this category. Unavailable revenue is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from: property taxes, special assessments, and property liens. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. In the government-wide financial statements the Town reports deferred amounts related to pension relating to the changes in actuarial assumptions and difference in expected and actual economic experience. In both the government-wide financial statements and governmental funds financial statements, the Town reports deferred amounts related to leases which is comprised of the initial value of the lease receivable systematically reduced and recognized as lease revenue over the term of the lease. Unearned Revenue Governmental funds report a liability, unearned revenue, in connection with resources that have been received, but not yet earned, which consists primarily of grant dollars received in advance of incurring eligible expenditures. Page 161 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 35 Long-Term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities statement of net position. Long-term debt for governmental funds is not reported as liabilities in the fund financial statements until due. The debt proceeds are reported as other financing sources, net of the applicable premium or discount and payments of principal and interest reported as expenditures. In the governmental fund types, issuance costs, even if withheld from the actual net proceeds received, are reported as debt service expenditures. Long-term debt and other obligations, financed by proprietary funds, are reported as liabilities in the appropriate funds. For proprietary fund types, bond premiums and discounts are deferred and amortized over the life of the bonds, if material. Bonds payable are reported net of the applicable bond premium or discount. Issuance costs are expensed when incurred. Lease Liability The Town is a lessee for noncancellable leases. The Town recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the financial statements. The Town recognizes lease liabilities with an initial, individual value of $5,000 or more. At the commencement of a lease, the Town initially measures the lease liability at the present value of payments expected to be made during the lease term. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life or the lease term, whichever is shorter. The Town monitors changes in circumstances that would require a remeasurement of its leases and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the Fiduciary Net Position of the Texas Municipal Retirement System (TMRS) and additions to/deductions from TMRS’s Fiduciary Net Position have been determined on the same basis as they are reported by TMRS. For this purpose, plan contributions are recognized in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Other Postemployment Benefits (OPEB) The Town has two single-employer defined benefit other postemployment benefit (OPEB) plans (Plans). For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB and OPEB expense have been determined on the same basis as they are reported by the Plans. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Net Position For government-wide reporting as well as in proprietary funds, the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources is called net position. Net position is comprised of three components: net investment in capital assets, restricted, and unrestricted. Page 162 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 36 Net investment in capital assets consists of capital and lease assets, net of accumulated depreciation and amortization and reduced by outstanding balances of bonds, notes, leases, and other debt that are attributable to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are included in this component of net position. Restricted net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Assets are reported as restricted when constraints are placed on asset use either by external parties or by law through constitutional provision or enabling legislation.Unrestricted net position is the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that does not meet the definition of the two preceding categories. Sometimes the Town will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is Town’s policy to consider restricted net position to have been depleted before unrestricted net position is applied. Fund Balance In governmental fund types, the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources is called “fund balance.” The Town’s governmental funds report the following categories of fund balance, based on the nature of any limitations requiring the use of resources for specific purposes. Nonspendable fund balance represents amounts that are either not in a spendable form or are legally or contractually required to remain intact.Restricted fund balance includes amounts that can be spent only for the specific purposes stipulated by external resource providers such as grantors or enabling federal, state, or local legislation. Restrictions may be changed or lifted only with the consent of the resource providers. Committed fund balance represents amounts that can be used only for the specific purposes determined by of the adoption of an ordinance committing fund balance for a specified purpose by the Town’s Council prior to the end of the fiscal year. Once adopted, the limitation imposed by the ordinance remains in place until the resources have been spent for the specified purpose or the Council adopts another ordinance to remove or revise the limitation.Assigned fund balance represents amounts that are intended to be used by the Town for specific purposes but do not meet the criteria to be classified as committed. The Council has by resolution authorized the finance director and town manager to assign fund balance. The Council may also assign fund balance, as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment.Unassigned fund balance represents the residual amount for the general fund that is not contained in the other classifications. The general fund is the only fund that reports a positive unassigned fund balance. Additionally, any deficit fund balance within the other governmental fund types is reported as unassigned. As previously mentioned, sometimes the Town will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the Town’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be Page 163 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 37 used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. Minimum Fund Balance Policy The Council has adopted a financial policy to maintain a level of unassigned fund balance in the general fund. The target level is set at six months of general fund annual expenditures (approximately 45%). This amount is intended to provide a fiscal stability when economic downturns and other unexpected events occur. If fund balance falls below the minimum target level because it has been used, essentially as a "revenue" source, as dictated by current circumstances, the policy provides for actions to replenish the amount to the minimum target level. Program Revenues Amounts reported as program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions (including special assessments) that are restricted to meeting the operational or capital requirements of a particular function or segment. All taxes, including those dedicated for specific purposes, and other internally dedicated resources are reported as general revenues rather than as program revenues. Property Taxes Property taxes are levied by October 1 on the assessed value listed as of the prior January 1 for all real and business personal property in conformity with Subtitle E, Texas Property Tax Code. Taxes are due on receipt of the tax bill and are delinquent if not paid before February 1 of the year following the year in which imposed. Under state law, property taxes levied on real property constitute a lien on the real property which cannot be forgiven without specific approval of the State Legislature. The lien expires at the end of twenty years. Taxes levied on personal property can be deemed uncollectible by the Town. Property taxes at the fund level are recorded as receivables and unavailable revenues at the time the taxes are assessed. Revenues are recognized as the related ad valorem taxes are collected. Additional amounts estimated to be collectible in time to be a resource for payment of obligations incurred during the fiscal year and therefore susceptible to accrual in accordance with Generally Accepted Accounting Principles have been recognized as revenue. Accumulated Vacation, Compensated Time, and Sick Leave It is the Town’s policy to permit employees to accumulate earned, but unused vacation pay benefits. No liability is reported for unpaid accumulated sick leave. All vacation pay is accrued when incurred in the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they are expected to be liquidated with expendable available financial resources, for example, as a result of employee resignations and retirements. Proprietary Funds Operating and Nonoperating Revenues and Expenses Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the storm drainage utility fund is charges to customers for sales and services. The principal operating revenues of the trophy club park fund is charges to customers for access to the park. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Page 164 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 38 Estimates The preparation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. Excess of Expenditures over Appropriations For the year ended September 30, 2024, the Public Improvement District No. 1 exceeded appropriations by $67,156 due to higher administrative expense than originally estimated. Future Financial Reporting Requirements GASB Statement No. 101, Compensated Absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. The requirements of this Statement will take effect for the Town’s fiscal year 2025. Management has not yet determined the impact of this Statement on its financial statements. GASB Statement No. 102, Certain Risk Disclosures. The objective of this statement is to provide users of governmental financial statements with essential information about risks related to a government's vulnerabilities due to certain concentrations or constraints. The requirements of this Statement will take effect for the Town’s fiscal year 2025. Management has not yet determined the impact of this Statement on its financial statements. GASB Statement No. 103, Financial Reporting Model Improvements. The objective of this Statement is to improve the financial reporting model by standardizing the presentation for various matters within governmental financial statements. The purpose is to eliminate diversity practice and improve comparability. The requirements of this Statement will take effect for the Town's fiscal year 2026. Management has not yet determined the impact of this Statement on its financial statements. GASB Statement No. 104, Disclosure of Certain Capital Assets. The objective of this Statement is to improve disclosures related to certain types of capital assets. The purpose is to provide users of government financial statements with essential information about certain types of capital assets. The requirements of this Statement will take effect for the Town's fiscal year 2026. Management has not yet determined the impact of this Statement on its financial statements. Page 165 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 39 Note 2.Cash and Investments The Town utilizes a pooled cash and investment concept for all its funds, to maximize its investment program. Investment income from this internal pooling is allocated to the respective funds based upon the sources of funds invested. Deposits At September 30, 2024, the carrying amount of the Town’s demand deposits, including its component unit, totaled $18,111,802 and the bank balance was $17,906,500. Cash on hand for the Town was $300 and the carrying amount and bank balance of cash for the Public Improvement District No. 1 was $4,256,245. Custodial Credit Risk In the case of deposits, this is the risk that, in the event of a bank’s failure, the Town’s deposits may not be returned to it. Pursuant to provisions of both the Texas Public Funds Investment Act and the Public Funds Investment Policy of the Town, deposits of the Town that exceed the federal depository insurance coverage levels are materially collateralized with securities held by a third party custodian in the Town’s name. Investments, other than investments that are obligations of the U.S. government, its agencies, and instrumentalities, are insured or registered in the Town’s name and held by a third party custodian. Investments The Town’s investment policies are governed by state statutes. The Town’s investment policies further limit state statutes such that eligible investments include the following: 1.Obligations, including letters of credit, of the United States, its agencies, and instrumentalities, including the Federal Home Loan Banks. 2.Direct obligations of the State of Texas, its agencies and instrumentalities or obligations of agencies, counties, cities, and other political subdivisions of this State rated as to investment quality by a nationally recognized investment rating firm of not less than "A" or its equivalent. 3.Other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, the State of Texas or the United States or their respective agencies and instrumentalities, including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States. 4.Certificates of Deposit and other forms of deposit issued by a depository institution that has its main office or a branch office in Texas. The certificate of deposit must be guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor or secured by obligations in a manner and amount as provided by law. In addition, deposits obtained through a depository institution that has its main office or a branch office in Texas and that contractually agrees to place the funds in federally insured depository institutions in accordance with the conditions prescribed in Section 2256. 01 0(b) of the Public Funds Investment Act are authorized investments. Additionally, funds invested by the Town through a broker that has a main office or branch office in Texas and is selected from a list approved by the Town as required by section 2656.025 of the Public Funds Investment Act or a depository institution that has a main office or branch office in Texas and is selected by the Town are authorized investments if the following conditions are met: a.the broker or depository institution selected by the Town as specified above arranges for the deposit of the funds in certificates of deposit in one or more federally insured depository institutions, wherever located, for the account of the Town; Page 166 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 40 b.the full amount of the principal and accrued interest of each of the certificates of deposit is insured by the United States or an instrumentality of the United States; and c.the Town appoints a depository bank, or a clearing broker registered with the Securities and Exchange Commission Rule 15c-3 (17CFR, Section 240 15c3-3) as custodian for the Town with respect to the certificates of deposit issued for account to the Town. 5.Fully collateralized direct repurchase agreements with a defined termination date secured by obligations of the United States or its agencies and instrumentalities. These shall be pledged to the Town of Trophy Club, held in an account in the Town of Trophy Club’s name, and deposited at the time the investment is made with the Town of Trophy Club or with a third-party selected and approved by the Town of Trophy Club. Repurchase agreements must be purchased through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in Texas. A Master Repurchase Agreement, or similar agreement, must be signed by the bank/dealer prior to investment in a repurchase agreement. All repurchase agreement transactions will be on a delivery versus payment basis. Securities received for repurchase agreements must have a market value greater than or equal to 102 percent at the time funds are disbursed. (This section pertains to Sweep Accounts and/or Bond Proceeds) 6.No-Load Money Market Mutual funds that: 1) are registered and regulated by the Securities and Exchange Commission and provide a prospectus and other information required by the Securities and Exchange Act of 1934 (15 U.S.C. Section 78a) or the Investment Company Act of 1940 (15 U.S.C. Section 80a-1), and 2) seek to maintain a stable net asset value of $1.0000 per share. 7.Local government investment pools, which: 1) meet the requirements of Chapter 2256.016 of the Public Funds Investment Act, 2) are rated no lower than AAA or an equivalent rating by at least one nationally recognized rating service, and 3) are authorized by resolution or ordinance by the Town Council. In addition, a local government investment pool created to function as a money market mutual fund must mark its portfolio to the market daily and, to the extent reasonably possible, stabilize at a $1.0000 net asset value. Investment Pools TexPool was established as a trust company with the Treasurer of the State of Texas as trustee, segregated from all other trustees, investments, and activities of the trust company. The State Comptroller of Public Accounts exercises oversight responsibility over TexPool. Oversight includes the ability to significantly influence operations, designation of management, and accountability for fiscal matters. Additionally, the State Comptroller has established an advisory board composed of both participants in TexPool and other persons who do not have a business relationship with TexPool. The advisory board members review the investment policy and management fee structure. Finally, Standard & Poor’s rate TexPool AAAm. As a requirement to maintain the rating, weekly portfolio information must be submitted to Standard & Poor’s, as well as to the office of the Comptroller of Public Accounts for review. At September 30, 2024, the fair value of the position in TexPool approximates fair value of the shares. There were no limitations or restrictions on withdrawals. Texas CLASS is a local government investment pool emphasizing safety, liquidity, convenience, and competitive yield. Since 1996, Texas CLASS has provided Texas public entities a safe and competitive investment alternative. Texas CLASS invests only in securities allowed by the Texas Public Funds Investment Act. The pool is governed by a board of trustees, elected annually by its participants. Texas CLASS is rated ‘AAAm’ by Standard and Poor’s Ratings Services. The ‘AAAm’ principal stability fund rating is the highest assigned to principal stability government investment pools and is a direct reflection of Texas CLASS’s outstanding credit quality and management. At September 30, 2024, the fair value of the position in Texas CLASS approximates fair value of the shares. There were no limitations or restrictions on withdrawals. Page 167 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 41 Interest Rate Risk Interest rate risk is the risk that changes in the market interest rates will adversely affect the fair value of an investment. In accordance with its investment policy, the Town manages its exposure to declines in fair values by limiting the maximum maturity length of investments to three years. As of September 30, 2024, the Town had the following investments: Investment Investment Maturities Maturities (in Years) (in Years) Less Than 1 More Than 1 Investment Type Fair Value Year Year Texas CLASS $ 3,587,294 $ 3,587,294 $ - TexPool 9,018,153 9,018,153 - Non-negotiable CDs 6,158,244 - 6,158,244 Total $ 18,763,691 $ 12,605,447 $ 6,158,244 Credit Risk The Town’s investment policy limits investments to obligations of the United States, State of Texas, or their agencies and instrumentalities with an investment quality rating of not less than “A” or its equivalent, by a nationally recognized investment rating firm. Other obligations must be unconditionally guaranteed (either express or implied) by the full faith and credit of the United States Government or the issuing U.S. agency and investment pools with an investment quality not less than AAA or AAAm, or equivalent, by at least one nationally recognized rating service. Concentration of Credit Risk The concentration of credit risk is the risk of loss that may be caused by the Town’s investment in a single issuer. The Town’s investment policy states that the investment portfolio shall be diversified so that potential losses on individual issuers will be minimized. At September 30, 2024, the Town’s investments are 67% in investment pools and 33% in non-negotiable CDs. Fair Value of Investments The Town measures and records its investments using, as appropriately, fair value measurement guidelines established by generally accepted accounting principles (GAAP). These guidelines recognize a three-tiered fair value hierarchy as follows: Level 1 Quoted prices for identical investments in active markets; Level 2 Observable inputs other than those in Level 1; and Level 3 Unobservable inputs. Page 168 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 42 Debt and equity securities classified as Level 1 are valued using prices quoted in active markets for those securities. Debt and equity securities classified in Level 2 are valued using the following approaches: debt securities are normally valued based on price data obtained from observed transactions and market price quotations from broker dealers and/or pricing vendors; equity securities are valued using fair value per share for each fund. Certificates of deposit classified in level 2 are valued using broker quotes that utilize observable market inputs. Securities classified as Level 3 have limited trade information, these securities are priced or using the last trade price or estimated using recent trade prices. At September 30, 2024, the Town had no investments in the fair value hierarchy. Certain investments that are measured using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts included below approximate net asset value for the applicable external investment pool balances. Additionally, the Town has investments in governmental pools and nonnegotiable CDs as listed below, which are recorded at amortized cost, and excluded from the fair value hierarchy. At September 30, 2024, the Town had the following investments: Investments measured at net asset value Texas CLASS $ 3,587,294 Investments measured at amortized cost Non-negotiable CDs 6,158,244 TexPool 9,018,153 Total investments $ 18,763,691 Page 169 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 43 Note 3.Receivables Below is the detail of receivables for the Town’s major and nonmajor funds, including the applicable allowances for doubtful accounts: Storm Debt PID Nonmajor Drainage General Service No. 1 Governmental Utility Total Receivables Property taxes $ 43,009 $ 13,809 $ - $ - $ - $ 56,818 Sales Tax 254,632 - - 126,058 - 380,690 Franchise taxes 37,154 - - - - 37,154 Hotel occupancy - - - 102,045 - 102,045 Special assessments - - 15,080,873 - - 15,080,873 Due from other governments 7,505 - - - - 7,505 Municipal court 28,047 - - - - 28,047 EMS 176,108 - - - - 176,108 Storm drainage - - - - 38,536 38,536 Leases 216,276 - - - - 216,276 Other 21,295 - - - - 21,295 Gross receivables 784,026 13,809 15,080,873 228,103 38,536 16,145,347 Less: allowance for doubtful accounts (150,624) - - (10,500) - (161,124) Net receivables $ 633,402 $ 13,809 $ 15,080,873 $ 217,603 $ 38,536 $ 15,984,223 Based on the payment schedule for special assessment receivables, approximately $12,713,000 of the amount reported in the PID No. 1 fund is not expected to be collected within the next year. Leases Receivable The Town leases several water towers to third parties, terms of which expire in various years through 2027. The Town recognized approximately $105,000 in lease revenue and $16,000 in interest revenue during the current fiscal year related to the leases. As of September 30, 2024, the Town’s receivable for lease payments was $216,276. Also, the Town has a deferred inflow of resources associated with this lease that will be recognized as revenue over the lease term. As of September 30, 2024, the balance of the deferred inflow of resources was $196,478. Page 170 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 44 Note 4.Capital and Lease Assets Capital and lease assets activity for the year ended September 30, 2024, was as follows: Beginning Sales/ Ending Balance Additions Disposals Transfers Balance Governmental Activities Capital assets, not being depreciated: Land $ 10,487,119 $ - $ - $ - $ 10,487,119 Construction in progress 2,197,624 - - 2,197,624 Total capital assets, not being depreciated 12,684,743 - - - 12,684,743 Capital and lease assets, being depreciated/amortized: Buildings 10,659,919 - - - 10,659,919 Improvements other than buildings 66,011,957 373,948 (12,461) 66,373,444 Machinery and equipment 2,966,834 298,727 (140,092) - 3,125,469 Vehicles 2,385,573 163,796 (94,633) - 2,454,736 Water system 5,362,005 - - - 5,362,005 Lease asset - equipment 151,007 - - 151,007 Infrastructure 14,332,062 140,000 - - 14,472,062 Total capital and lease assets, being depreciated/amortized 101,869,357 976,471 (247,186) - 102,598,642 Less accumulated depreciation/amortization for: Buildings 2,579,208 386,789 - - 2,965,997 Improvements other than buildings 35,129,757 2,149,788 - - 37,279,545 Machinery and equipment 2,254,026 213,489 (140,092) - 2,327,423 Vehicles 1,277,176 237,335 (94,633) - 1,419,878 Water system 2,200,308 175,876 - - 2,376,184 Lease asset - equipment 53,997 37,116 - 91,113 Infrastructure 7,349,928 363,232 - - 7,713,160 Total accumulated depreciation/amortization 50,844,400 3,563,625 (234,725) - 54,173,300 Total capital and lease assets, being depreciated/amortized 51,024,957 (2,587,154)(12,461) - 48,425,342 Governmental activities capital and lease assets, net $ 63,709,700 $(2,587,154) $(12,461) $ - $ 61,110,085 Beginning Sales/ Ending Balance Additions Disposals Transfers Balance Business-Type activities: Capital assets, being depreciated: Improvements other than Buildings $ 158,887 $ - $ - $ - $ 158,887 Machinery and equipment 97,592 - - - 97,592 Improvements 33,365 - - - 33,365 Infrastructure 2,039,766 - - - 2,039,766 Total capital assets, being depreciated 2,329,610 - - - 2,329,610 Less accumulated depreciation for: Improvements other than Buildings 8,930 7,950 - - 16,880 Machinery and equipment 24,303 9,735 - - 34,038 Improvements 10,842 3,336 - - 14,178 Infrastructure 431,894 51,083 - - 482,977 Total accumulated depreciation 475,969 72,104 - - 548,073 Total capital assets, being depreciated, net 1,853,641 (72,104) - - 1,781,537 Business-type activities capital assets, net $ 1,853,641 $(72,104) $ - $ - $ 1,781,537 Page 171 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 45 Depreciation and amortization expense was charged to the functions/programs of the primary government as follows: Governmental Activities General government $ 394,188 Emergency medical services 87,503 Information systems 26,148 Police 180,007 Fire 30,889 Parks and recreation 683,874 Community development 20,244 Public works 2,140,772 Total governmental activities depreciation/amortization expense $ 3,563,625 Business-type Activities Trophy Club Park $ 21,021 Storm Drainage Utility 51,083 Total business-type activities $ 72,104 Note 5.Long-term Liabilities The following is a summary of changes in the Town’s total long-term liabilities for the year ended September 30, 2024. Beginning Ending Due Within Balance Additions Retirements Balance One Year Governmental Activities General Obligation Bonds $ 5,890,000 $ - $ 725,000 $ 5,165,000 $ 740,000 Certificates of Obligation 18,040,000 - 1,240,000 16,800,000 1,545,000 Special Assessment Bonds 19,776,000 - 1,549,000 18,227,000 1,627,000 Bond Premiums 3,423,086 - 329,545 3,093,541 - Total bonds payable 47,129,086 - 3,843,545 43,285,541 3,912,000 Leases payable 85,745 - 36,451 49,294 37,299 Compensated absences 327,165 396,146 315,645 407,666 366,899 Total governmental activities $ 47,541,996 $ 396,146 $ 4,195,641 $ 43,742,501 $ 4,316,198 Business-Type Activities: Certificates of Obligation $ 175,000 $ - $ 175,000 $ - $ - Bond Premiums 468 - 468 - - Total bonds payable 175,468 - 175,468 - - Total business-type activities $ 175,468 $ - $ 175,468 $ - $ - Page 172 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 46 The Town intends to retire all of its governmental activities general long-term liabilities, plus accrued interest, from property taxes and other current revenues from the debt service fund as has been done in prior years. The special assessment bonds are expected to be liquidated from the PID No. 1 fund. The general fund has typically been used to liquate the liability for compensated absences for governmental activities. The proprietary fund type long-term debt will be repaid, plus accrued interest, from operating revenues of the respective fund. General Obligation Bonds The Town issues general obligation bonds and certificates of obligations to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business-type activities. General obligation bonds are direct obligations and pledge the full faith and credit of the Town. General obligation bonds and certificates of obligation outstanding at September 30, 2024, are as follows: Interest Original Outstanding at Governmental Activities Rate (%)Final Maturity Borrowing Year-End General Obligation Bonds: General Obligation Refunding Series 2015 2.18 2025 $ 2,030,000 $ 245,000 General Obligation Series 2016 2.00-3.00 2036 5,245,000 3,370,000 General Obligation Refunding Series 2020 1.16 2030 3,550,000 1,550,000 $ 5,165,000 Certificate of Obligations: Certificates of Obligation Series 2013 2.50-3.25 2028 1,300,000 470,000 Certificates of Obligation Series 2014 2.00-4.00 2034 2,500,000 1,435,000 Certificates of Obligation Series 2016 2.00-4.00 2036 4,210,000 2,820,000 Certificates of Obligation Series 2017 2.50-3.00 2037 4,445,000 2,685,000 Certificates of Obligation Series 2021 2.00-4.00 2041 4,305,000 3,030,000 Certificates of Obligation Series 2023 4.00-5.00 2043 6,925,000 6,360,000 $ 16,800,000 Page 173 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 47 Special Assessment Bonds The Town also issued special assessment debt in 2015 to provide funds for improvements within Trophy Club PID No. 1 area. These bonds will be repaid from special assessments levied on the property owners benefiting from this construction. Those amounts, including interest, are 100% pledged to pay the scheduled principal and interest payments on the special assessment bonds. The Town is not obligated to pay the bonds from any funds raised from taxation or from any other revenues available to the Town. Interest Original Outstanding at Governmental Activities Rate (%)Final Maturity Borrowing Year-End Special Assessment: Special Assessment Revenue Refunding-Series 2015 2.00-4.00 2033 $ 26,154,979 $ 18,227,000 $ 18,227,000 The debt service requirements for the Town’s bonds are as follows: Governmental Activities Year Ended Total September 30 Principal Interest Requirements 2025 $ 3,912,000 $ 1,347,982 $ 5,259,982 2026 3,218,000 1,225,121 4,443,121 2027 3,343,000 1,128,935 4,471,935 2028 3,477,000 1,027,618 4,504,618 2029 1,495,000 920,958 2,415,958 2030-2034 18,172,000 2,606,068 20,778,068 2035-2039 4,540,000 681,375 5,221,375 2040-2043 2,035,000 140,350 2,175,350 Total $ 40,192,000 $ 9,078,407 $ 49,270,407 Page 174 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 48 Leases Payable The Town has agreements as lessee for equipment and copiers, the terms of which expire in various years through 2027. The following is a schedule by year of payments under the leases as of September 30, 2024: Year Ending September 30,Principal Interest Total 2025 $ 37,299 $ 1,579 $ 38,878 2026 7,010 688 7,698 2027 4,985 147 5,132 Total $ 49,294 $ 2,414 $ 51,708 Note 6.Interfund Transactions Due to/from component unit The composition of amounts due to/from component unit as of September 30, 2024, is as follows: Receivable Payable Amount Component Unit General Fund $ 11,700 Nonmajor Governmental Fund 23,405 $ 35,105 The outstanding balances between funds result mainly from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. Advances from/to other funds: Receivable Fund Payable Fund Amount General Fund PID No. 1 $ 53,276 General Fund Nonmajor Governmental Fund 386,503 $ 439,779 Page 175 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 49 The amount payable to the general fund from the nonmajor governmental fund relates to a working capital loan made to a nonmajor governmental fund. None of the balance is scheduled to be collected in the subsequent year. The amount payable to the general fund from the Public Improvement District No. 1 fund relates to expenditures paid for by the general fund during prior years. The balance is expected to be paid in future years as the Public Improvement District No. 1 fund increases revenues. Interfund transfers The composition of interfund transfers for the year ended September 30, 2024, is as follows: Transfer In Nonmajor Storm Governmental Drainage Transfer Out:General Funds Utility Fund Total General Fund $ - $ 255,487 $ - $ 255,487 Debt Service Fund - - 177,625 177,625 Nonmajor Governmental Funds 116,500 - - 116,500 Storm Drainage Utility Fund 20,000 - - 20,000 Nonmajor Enterprise Fund 15,000 - - 15,000 Total $ 151,500 $ 255,487 $ 177,625 $ 584,612 Transfers were primarily used to support debt service, capital expenditures, and to transfer funds to the general fund for budgeted administrative costs. Note 7.Risk Management The Town is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; business interruption; errors and omissions; injuries to employees; employee health benefits; and other claims of various natures. The Town participates in the Texas Municipal League Intergovernmental Risk Pool (Pool) which provides protection for risks of loss. Premiums are paid to the Pool that retains the risk of loss beyond the Town’s policy deductibles. Any losses reported but unsettled or incurred and not reported, are believed to be insignificant to the Town’s basic financial statements. For the last three years, there have been no significant reductions of insurance coverage or insurance settlements in excess of insurance coverage. Note 8.Contingencies Federal Grant Programs The Town participates in various federal grant programs, the principal of which are subject to program compliance audits pursuant to the Single Audit Act as amended. Accordingly, the Town’s compliance with applicable grant requirements will be established at a future date. The amount of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although the Town anticipates such amounts, if any, will be immaterial. Page 176 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 50 Note 9.Defined Benefit Pension Plan Plan Description The Town participates as one of over 900 plans in the defined benefit cash-balance pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is a statewide public retirement plan created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent multiple-employer retirement system for employees of Texas participating cities. The TMRS Act places the general administration and management of TMRS with a six-member, Governor-appointed Board of Trustees; however, TMRS is not fiscally dependent on the State of Texas. TMRS issues a publicly available Annual Comprehensive Financial Report (ACFR) that can be obtained at tmrs.com. All eligible employees of the Town are required to participate in TMRS. Benefits Provided TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the Town, within the options available in the state statutes governing TMRS. At retirement, the Member’s benefit is calculated based on the sum of the Member’s contributions, with interest, and the Town-financed monetary credits with interest. The retiring Member may select one of seven monthly benefit payment options. Members may also choose to receive a portion of their benefit as a lump sum distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the total Member contributions and interest. The plan provisions are adopted by the governing body of the Town, within the options available in the state statutes governing TMRS and within the actuarial constraints also in the statutes. Plan provisions for the Town were as follows: Member Deposit Rate 7% Town Matching Ratio 2 to 1 Updated Service Credit 100% Transfers Annuity Increases to Retirees 30% CPI-U since retirement date Vesting 5 years Service Retirement Eligibilities 5 years/age 60, 20 years/any age Employees Covered by Benefit Terms At the December 31, 2023, valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 63 Inactive employees entitled to but not yet receiving benefits 118 Active employees 72 253 Contributions Member contribution rates in TMRS are either 5%, 6%, or 7% of the Member’s total compensation, and the Town matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of the Town. Under the state law governing TMRS, the contribution rate for each Town is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The Town’s contribution rate is based on the liabilities Page 177 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 51 created from the benefit plan options selected by the Town and any changes in benefits or actual experience over time. Employees for the Town were required to contribute 7% of their annual compensation during the fiscal year. The contribution rates for the Town were 12.68% and 12.90% in calendar years 2023 and 2024, respectively. The Town’s contributions to TMRS for the year ended September 30, 2024, were $930,909 and were equal to the required contributions. Net Pension Liability The Town’s Net Pension Liability was measured as of December 31, 2023, and the Total Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. The Total Pension Liability in the December 31, 2023, actuarial valuation was determined using the following actuarial assumptions: Inflation 2.50% per year Overall payroll growth 2.55% per year, adjusted down for population declines, if any Investment rate of return 6.75% net of pension plan investment expense, including inflation Salary increases are based on a service-related table. Mortality rates for active members are based on the PUB(10) mortality tables with 110% the Public Safety table used for males and 100% of the General Employee table used for females. Mortality rates for healthy retirees and beneficiaries are based on the Gender-distinct 2019 Municipal Retirees for Texas mortality tables. Male rates are multiplied by 103% and female rates are multiplied by 105%. The rates for actives, healthy retirees and beneficiaries are projected on a fully generational basis by the most recent Scale MP-2021 to account for future mortality improvements. For disabled annuitants, the same mortality tables for healthy retirees are used with a 4-year set-forward for males a 3-year set-forward for females. In addition a 3.5% and 3.0% minimum mortality rate is applied, for males and females, respectively, to reflect the impairment for younger members who become disabled. The rates are projected on a fully generational basis by the most recent Scale MP-2021 to account for future mortality improvements subject to the 3% floor. The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS over the four-year period from December 31, 2018 to December 31, 2022. The assumptions were adopted in 2023 and first used in the December 31, 2023, actuarial valuation. The post-retirement mortality assumption for Annuity Purchase Rates (APRs) is based on the Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income to satisfy the short-term and long-term funding needs of TMRS. Page 178 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 52 The long-term expected rate of return on pension plan investments was determined by best estimate ranges of expected returns for each major asset class. The long-term expected rate of return is determined by weighting the expected return for each major asset class by the respective target asset allocation percentage. The target allocation and best estimates of the expected return for each major asset class in fiscal year 2024 are summarized in the following table: Long-Term Expected Target Real Rate of Return Asset Class Allocation (Arithmetic) Global Equity 35.00%6.70% Core Fixed Income 6.00%4.70% Non-Core Fixed Income 20.00%8.00% Other Public and Private Markets 12.00%8.00% Real Estate 12.00%7.60% Hedge Funds 5.00%6.40% Private Equity 10.00%11.60% Total 100.00% Discount Rate The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that Member and employer contributions will be made at the rates specified in statute. Based on that assumption, the pension plan’s Fiduciary Net Position was projected to be available to make all projected future benefit payments of current active and inactive Members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability. Page 179 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 53 Changes in Net Pension Liability (Asset) Net Pension Total Pension Plan Fiduciary Liability / Liability (a)Net Position (b)(Asset) (a) - (b) Balance, Beginning of Year $ 27,144,382 $ 23,879,770 $ 3,264,612 Changes for the year: Service cost 1,138,934 - 1,138,934 Interest (on the Total Pension Liability) 1,838,912 - 1,838,912 Difference between expected and actual experience 637,486 - 637,486 Changes in assumptions (91,511) - (91,511) Contributions - member - 454,276 (454,276) Contributions - employer - 822,888 (822,888) Net investment income - 2,766,470 (2,766,470) Benefit payments, including refunds of member contributions (941,420)(941,420) - Administrative expense - (17,583) 17,583 Other - (123) 123 Net Changes 2,582,401 3,084,508 (502,107) Balance, End of Year $ 29,726,783 $ 26,964,278 $ 2,762,505 Sensitivity of the Net Position Liability (Asset) to Changes in the Discount Rate The following presents the net pension liability (asset) of the Town, calculated using the discount rate of 6.75%, as well as what the Town’s net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (5.75%) or 1-percentage-point higher (7.75%) than the current rate: 1% Decrease in 1% Increase in Discount Rate (5.75%)Discount Rate (6.75%)Discount Rate (7.75%) Net pension liability (asset) $ 7,210,652 $ 2,762,505 $(854,081) Pension Plan Fiduciary Net Position Detailed information about the pension plan’s Fiduciary Net Position is available in the Schedule of Changes in Fiduciary Net Position, by Participating City/Town. That report may be obtained at tmrs.com. Page 180 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 54 Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: For the year ended September 30, 2024, the Town recognized pension expense of $1,085,929. At September 30, 2024, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Difference between projected and actual investment earnings $ 627,920 $ - Difference of assumption changes or inputs - 55,764 Difference in expected and actual economic experience 396,254 - Contributions subsequent to the measurement date 732,604 - $ 1,756,778 $ 55,764 $732,604 reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date will be recognized as a reduction of the Net Pension Liability for the year ending 2025. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Net Deferred Outflows of Year Ended September 30,Resources 2025 $ 391,592 2026 324,347 2027 483,388 2028 (230,917) $ 968,410 Allocation of Pension Items The Town allocates pension items to the governmental activities on the basis of employee payroll funding. The net pension liability/(asset) is liquidated by the General Fund, Street Maintenance Sales Tax Fund, and Hotel Occupancy Tax Fund. Page 181 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 55 Note 10.Other Postemployment Benefits (OPEB) A summary of the total OPEB liability, deferred outflows of resources, deferred inflows of resources, and OPEB expense of each plan is shown below. Detailed discussion of each plan will follow in this note. Deferred Deferred Total OPEB Outflows Inflows Liability of Resources of Resources OPEB Expense Governmental Activities Supplemental Death Benefits Plan $ 255,612 $ 35,366 $ 103,676 $ 7,312 Retiree Health Care Plan 51,659 3,246 30,001 633 Total governmental activities $ 307,271 $ 38,612 $ 133,677 $ 7,945 Texas Municipal Retirement System Supplemental Death Benefits Fund Plan Description Texas Municipal Retirement System (TMRS) administers an optional death benefit plan, the Supplemental Death Benefits Fund (SDBF), which operates like a group-term life insurance plan. This is a voluntary program in which participating member cities may elect, by ordinance, to provide supplemental death benefits for their active Members with optional coverage for their retirees. The Town has elected to participate in the SDBF for its active members, including retirees. As the SDBF covers both active and retiree participants with no segregation of assets, the SDBF is considered to be an unfunded single-employer OPEB plan (i.e., no assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75). Benefits Provided The death benefit for active Members provides a lump-sum payment approximately equal to the Member’s annual salary (calculated based on the Member’s actual earnings for the 12-month period preceding the month of death). The death benefit for retirees is considered another postemployment benefit (OPEB) and is a fixed amount of $7,500. Employees Covered by Benefit Terms At the December 31, 2023, valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees currently receiving benefits 37 Inactive employees entitled to but not yet receiving benefits 31 Active employees 72 140 Page 182 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 56 Contributions The Town contributes to the SDBF at a contractually required rate as determined by an annual actuarial valuation. The rate is based on the mortality and service experience of all employees covered by the SDBF and the demographics specific to the workforce of the Town. The funding policy for the SDBF program is to assure that adequate resources are available to meet all death benefit payments for the upcoming year. As such, contributions fund the covered active Member and retiree deaths on a pay-as-you-go basis. Due to the SDBF being considered an unfunded OPEB plan, benefit payments are treated as being equal to the Town’s yearly contributions for retirees. The retiree portion of the contribution rates for the Town to the SDBF were 0.08% and 0.08% for calendar year 2023 and 2024, respectively. The Town’s contributions to the SDBF for the year ended September 30, 2024, were $5,192, and were equal to the required contributions. Total OPEB Liability The Town’s Total OPEB Liability was measured as of December 31, 2023, and the Total OPEB Liability was determined by an actuarial valuation as of that date. Actuarial assumptions: The Total OPEB Liability in the December 31, 2023, actuarial valuation was determined using the following actuarial assumptions: Inflation 2.50% per year Salary increases 3.60% to 11.85% including inflation Discount rate 3.77% (4.05% in prior year) Retirees' share of benefit- related costs $ 0 All administrative expenses are paid through the Town’s Pension Trust and accounted for under reporting requirements of GASB Statement No. 68. Salary increases were based on a service-related table. Mortality rates for active members, retirees, and beneficiaries were based the gender-distinct 2019 Municipal Retirees of Texas mortality tables. Male rates are multiplied by 103% and female rates are multiplied by 105%. The rates are projected on a fully generational basis by the most recent Scale MP-2021 (with immediate convergence). Mortality rates for disabled annuitants were based on the mortality tables for with a 4 year set-forward for males and a 3 year set-forward for females. In addition, a 3.5% and 3% minimum mortality rate will be applied to reflect the impairment for younger members who become disabled for males and females, respectively. The rates are projected on a fully generational basis by Scale MP-2021 (with immediate convergence) to account for future mortality improvements subject to the floor. The actuarial assumptions used in the December 31, 2023, valuation was based on the results of an actuarial experience study for the period ending December 31, 2022. Because the Supplemental Death Benefits Fund is considered an unfunded trust under GASB Statement No. 75, the relevant discount rate for calculating the Total OPEB Liability is based on the Fidelity Index’s “20-Year Municipal GO AA Index” rate as of the measurement date. Page 183 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 57 Changes in the Total OPEB Liability: Total OPEB Liability Balance, Beginning of Year $ 235,202 Changes for the year Service cost 12,979 Interest on Total OPEB Liability 9,683 Differences between expected and actual experience (10,491) Changes of assumptions 13,431 Benefit payments (5,192) Net changes 20,410 Balance, End of Year $ 255,612 Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the Town, calculated using the discount rate of 3.77%, as well as what the Town’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.77%) or 1-percentage- point higher (4.77%) than the current rate: 1% Decrease in 1% Increase in Discount Rate (2.77%)Discount Rate (3.77%)Discount Rate (4.77%) Total OPEB liability $ 310,516 $ 255,612 $ 213,617 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended September 30, 2024, the Town recognized OPEB expense of $7,312. At September 30, 2024, the Town reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Difference in expected and actual experience $ 1,856 $ 23,729 Changes in assumptions 28,967 79,947 Contributions made subsequent to measurement date 4,543 - $ 35,366 $ 103,676 Page 184 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 58 The Town reported $4,543 as deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date that will be recognized as a reduction of the Total OPEB Liability for the year ending September 30, 2025. Other amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Net Deferred Outflows of Year Ended September 30,Resources 2025 $(17,895) 2026 (27,211) 2027 (28,079) 2028 332 $(72,853) Retiree Health Care Plan Plan Description The Town offers retired employees and their dependents the option to retain health, dental, and vision insurance coverage under the Town’s insurance carrier until the age 65 through a single employer defined benefit plan. The Town does not make a direct contribution for retiree medical coverage. The retirees participate in the same plan as active employees. This effect on cost is considered to be an implicit rate subsidy. To be eligible for retiree health plan benefits, retired employees must be at least age 55 and have 10 years of service with the Town. The plan does not issue a separate report. Benefit provisions for retirees are not mandated by any form of employment agreement and the continued provision of these benefits is based entirely on the discretion of the Town Council. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB 75. Benefits Provided Retiree medical coverage levels for retirees are the same plans and benefits for all active employees in accordance with the terms and conditions of the Town’s current health plan. Premiums for the retiree health plans are 195% of the current contribution rate for active employees. The plans themselves are the same as well with regard to benefits and structure with no differentiation. The contributions and coverage continue until the retiree reaches age 65. Employees Covered by Benefit Terms At September 30, 2024, the following employees were covered by the benefit terms: Inactive employees currently receiving benefits - Active employees 68 68 Page 185 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 59 Total OPEB Liability The Town’s Total OPEB Liability was measured as of September 30, 2024, and the Total OPEB Liability was determined by an actuarial valuation as of September 30, 2024. Actuarial Assumptions: The Total OPEB Liability in the September 30, 2024, actuarial valuation was determined using the following actuarial assumptions: Inflation 2.5% per year Salary increases 3.50%, including inflation Discount rate 4.06% (4.77% in prior year) Retirees' share of benefit- related costs Retiree pays a 195% of the active employee monthly contribution rate for medical/ dental/vision coverage Health-care cost trend rates Level 4.50% Mortality rates were based on RPH-2014 Total Table with Projection MP-2021. Because the Retiree Health Care Plan is considered an unfunded trust under GASB Statement No. 75, the relevant discount rate for calculating the Total OPEB Liability is based on the S&P Municipal Bond 20-Year High Grade Rate index as of the measurement date. Changes in the Total OPEB Liability: Total OPEB Liability Balance, Beginning of Year $ 52,483 Changes for the year Service cost 4,185 Interest on Total OPEB Liability 2,703 Differences between expected and actual experience (11,470) Changes of assumptions 3,758 Net changes (824) Balance, End of Year $ 51,659 Rate Sensitivity of the Total OPEB Liability The following presents the total OPEB liability of the Town, calculated using the discount rate of 4.06%, as well as what the Town’s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (3.06%) or 1-percentage- point higher (5.06%) than the current rate: 1% Decrease in 1% Increase in Discount Rate Discount Rate Discount Rate (3.06%)(4.06%)(5.06%) Total OPEB liability $ 57,473 $ 51,659 $ 46,451 Page 186 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 60 The following presents the total OPEB liability of the Town, calculated using the healthcare cost trend rate of 4.5%, as well as what the Town’s total OPEB liability would be if it were calculated using a trend rate that is 1-percentage-point lower (3.5%) or 1-percentage- point higher (4.5%) than the current rate: 1% Decrease in Healthcare 1% Increase in Trend Rate Trend Rate Trend Rate (3.50%)(4.50%)(5.50%) Total OPEB liability $ 45,016 $ 51,659 $ 59,493 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended September 30, 2024, the Town recognized OPEB expense of $633. At September 30, 2024, the Town reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Difference in expected and actual experience $ - $ 19,639 Changes in assumptions 3,246 10,362 $ 3,246 $ 30,001 Amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Net Deferred Inflows of Year Ended September 30,Resources 2025 $(6,253) 2026 (6,253) 2027 (6,112) 2028 (5,276) 2029 (1,469) Thereafter (1,392) $(26,755) Allocation of OPEB Items The Town allocates OPEB items to the governmental activities on the basis of employee payroll funding. The total OPEB liability is liquidated by the General Fund, Street Maintenance Sales Tax Fund, and Hotel Occupancy Tax Fund. Page 187 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 61 Note 11.Deferred Compensation Plan The Town has established a single-employer defined contribution, deferred compensation plan (457 Plan) in accordance with Internal Revenue Code, Section 457(b). The 457 Plan is available to all full-time employees of the Town. The 457 Plan is administered by ICMA Retirement Corporation doing business as Mission Square Retirement. Benefit provisions are contained in the plan document and were established and can be amended by action of the Town Council. All 457 Plan assets and income are held in trust for the exclusive benefit of participants and their beneficiaries; therefore, it is not reported in the financial statements of the Town. The 457 Plan permits employees to defer a portion of their salaries until future years. The benefits of the 457 Plan are not available to employees until termination, retirement, or unforeseeable emergency. Benefits are available to employee’s beneficiaries in case of death. The Town does not contribute to the 457 Plan. Note 12.Tax Abatements The Town enters into tax abatement agreements with local businesses under Chapter 380 of the Texas Local Government Code. The Town has the authority under both Article III, Section 52-a of the Texas Constitution and Chapter 380 to make public funds available for the purposes of promoting local economic development and stimulating business and commercial activity with the Town. The Town offers individual incentive packages to attract new business to the Town. Abatements may be granted by Town Council resolution to companies or developers agreeing to relocate to the Town or to establish a new business in the Town. As part of the agreements, the Town agrees to refund a portion of incremental Local Sales and Use Tax, Type B Sales and Use Tax, and/or Property Taxes after confirmation of payment. The agreements entered into by the Town include clawback provisions should the recipient of the tax abatement fail to fully meet its commitments, such as annual sales levels or appraised values of real and personal property located on the project site. As a part of these agreements, the Town may also provide Developers financial assistance for Developer’s expenditures made towards the Project. In addition to tax abatements, the Town occasionally makes additional commitments in its economic development incentive agreements. The following additional commitments have been made: The Town agreed to provide a loan of $200,000 to fund certain permanent improvements to a building related to a qualified project during fiscal year 2021. The loan was to be paid back with interest of 2% calculated annually within four years of the date the Certificate of Occupancy is issued. During fiscal year 2022, the payee closed operations and was in default of the agreement. The Town is currently developing a revised repayment plan with expectations of full collectability of the original outstanding amount. The current loan amount is the note receivable balance in the Economic Development Corporation. Page 188 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 62 For the fiscal year ended September 30, 2024, the Town has two open tax abatement agreements and abated the following amounts under these agreements: Amount of Taxes Abated During the Open Agreements - Type of Tax Abatement Fiscal Year Town of Trophy Club Property tax $ 27,786 Sales tax 68,600 $ 96,386 Note 13.Economic Development Corporation The Economic Development Corporation (EDC) is financed with a voter approved half-cent Town sales tax, to aid, promote and further the economic development within the Town. Cash and Investments Cash and cash equivalents for the EDC as of September 30, 2024, consist of and are classified in the accompanying financial statements as follows: Cash and cash equivalents $ 2,190,353 Total cash and cash equivalents $ 2,190,353 Investments Because the Town provides investment services for the EDC, the Town adheres to its investment policy and all state statutes when investing available cash for the Town. The EDC’s investments balances at September 30, 2024, were $1,846,635 (included in cash and cash equivalents for financial statement purposes) and were held in TexPool. Page 189 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 63 Note Receivable In connection with an economic development incentive agreement, as noted previously, EDC agreed to provide a loan of $200,000 to fund certain permanent improvements to a building related to a qualified project during fiscal year 2021. The loan was to be paid back with interest of 2% calculated annually within four years of the date the Certificate of Occupancy is issued. During fiscal year 2022, the payee closed operations and was in default of the agreement. The Town is currently developing a revised repayment plan with expectations of full collectability of the original outstanding amount. Scheduled note receivable payments as of year-end are as follows: Future Minimum Note Receivable Year Ended September 30,Amounts 2025 $ 62,500 2026 37,500 2027 49,250 Total $ 149,250 Capital Assets Capital asset activity for the year ended September 30, 2024, is as follows: Beginning Ending Balance Additions Deletions Balance Component Unit Activities Capital assets, not being depreciated: Land $ 2,538,765 $ - $ - $ 2,538,765 Total capital assets, not being depreciated 2,538,765 - - 2,538,765 Capital assets, being depreciated: Infrastructure 367,960 - - 367,960 Total capital assets, being depreciated 367,960 - - 367,960 Less accumulated depreciation for: Infrastructure 106,625 24,693 - 131,318 Total accumulated depreciation 106,625 24,693 - 131,318 Total capital assets, being depreciated, net 261,335 (24,693) - 236,642 Total capital assets $ 2,800,100 $(24,693) $ - $ 2,775,407 Depreciation expense charged to the EDC component unit was $24,693. Page 190 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 64 Long-term Debt A summary of long-term debt transactions, including current portion, for the year ended September 30, 2024, is as follows: Beginning Ending Due Within Balance Additions Retirements Balance One Year Component Unit Activities Sales Tax Revenue Bonds $ 1,840,000 $ - $ 120,000 $ 1,720,000 $ 125,000 Bond Discounts (15,877) - (1,333)(14,544) - Total bonds payable 1,824,123 - 118,667 1,705,456 125,000 Total component unit activities $ 1,824,123 $ - $ 118,667 $ 1,705,456 $ 125,000 Sales Tax Revenue Bonds EDC issued sales tax revenue bonds to provide funds for purchasing land within the Town to be used to promote new or expanded business enterprises including for entertainment, convention, tourist, sports and exhibition facilities, amphitheaters, concert halls, parks, open space, restaurants, retail, parking facilities, public safety facilities and related roads, street and water and sewer facilities and improvements. Sales tax revenue bonds outstanding at September 30, 2024, are as follows: Interest Original Outstanding at Component Unit Activities Rate (%)Final Maturity Borrowing Year-End Sales Tax Revenue Bonds, Taxable Series 2015 1.00-4.75 2035 $ 2,690,000 $ 1,720,000 $ 2,690,000 $ 1,720,000 The debt service requirements for the sales tax revenue bonds are as follows: Component Unit Activities Total Year Ended September 30,Principal Interest Requirements 2025 $ 125,000 $ 77,463 $ 202,463 2026 130,000 72,213 202,213 2027 135,000 66,688 201,688 2028 140,000 60,950 200,950 2029 150,000 55,000 205,000 2030-2034 845,000 169,513 1,014,513 2035 195,000 9,263 204,263 Total $ 1,720,000 $ 511,090 $ 2,231,090 Page 191 of 280 Town of Trophy Club, Texas Notes to the Financial Statements September 30, 2024 65 The following is a summary of pledged revenues of EDC for the year ended September 30, 2024: Percentage Period Current Portion Revenue Year Debt of Pledged Remaining Will Not Be Total Pledged Service Revenue Principal and Available For Revenue Pledged Revenue Requirements Stream Interest Other Purposes .5% sales and use tax $ 865,900 $ 203,644 23.5% $ 2,231,090 Until 2035 Page 192 of 280 Required Supplementary Information (Unaudited) Page 193 of 280 Page 194 of 280 Town of Trophy Club, Texas Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - General Fund Year Ended September 30, 2024 68 Original Final Variance with Budget Budget Actual Final Budget Revenues Property taxes $ 8,953,445 $ 8,953,445 $ 9,004,625 $ 51,180 Sales and mixed beverage taxes 1,595,000 1,595,000 1,788,866 193,866 Franchise and local taxes 917,500 917,500 1,029,212 111,712 License and permits 255,000 323,000 356,502 33,502 Intergovernmental 1,195,440 1,195,440 1,877,504 682,064 Charges for services 909,154 909,154 1,653,680 744,526 Fines and forfeitures 318,476 318,476 479,580 161,104 Lease revenue 65,000 65,000 105,010 40,010 Interest revenue - leases - - 15,712 15,712 Investment income 160,000 160,000 976,294 816,294 Other revenue 96,000 221,923 354,916 132,993 Total revenues 14,465,015 14,658,938 17,641,901 2,982,963 Expenditures Current General government 217,575 217,575 121,571 (96,004) Manager's office 2,799,873 2,795,873 473,438 (2,322,435) Town secretary 262,275 250,275 208,835 (41,440) Mayor & council - 16,000 7,662 (8,338) Human resources 487,281 487,281 351,267 (136,014) Finance 591,265 591,265 608,058 16,793 Information services 991,297 991,297 572,452 (418,845) Legal 225,430 225,430 138,548 (86,882) Municipal court 109,240 109,240 248,929 139,689 Police 3,870,180 3,952,841 3,913,375 (39,466) Fire 1,767,663 1,868,420 1,834,130 (34,290) Emergency medical services 1,746,885 1,755,354 1,646,247 (109,107) Facilities management 308,724 308,724 1,501,274 1,192,550 Parks and recreation 2,887,223 2,930,537 2,421,524 (509,013) Community development 520,571 639,300 510,709 (128,591) Sanitation 305,491 305,491 328,921 23,430 Debt service Principal - - 6,002 6,002 Interest - - 1,696 1,696 Capital outlay - - 248,584 248,584 Total expenditures 17,090,973 17,444,903 15,143,222 (2,301,681) Excess of Revenues Over Expenditures (2,625,958)(2,785,965) 2,498,679 5,284,644 Other Financing Sources (Uses) Transfers in 201,500 201,500 151,500 50,000 Transfers out - - (255,487) 255,487 Sale of general capital assets - - 8,274 (8,274) Total other financing sources (uses) 201,500 201,500 (95,713) 297,213 Net Change in Fund Balances $(2,424,458) $(2,584,465) 2,402,966 $ 5,581,857 Fund Balances, Beginning 10,416,334 Fund Balances, Ending $ 12,819,300 Page 195 of 280 Town of Trophy Club, Texas Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual - Public Improvement District No. 1 Year Ended September 30, 2024 69 Original and Variance with Final Budget Actual Final Budget Revenues Special assessments $ 2,296,418 $ 2,275,465 $(20,953) Investment income - 257,429 257,429 Miscellaneous 49,431 - (49,431) Total revenues 2,345,849 2,532,894 187,045 Expenditures General government 49,231 93,153 43,922 Debt Service: Principal 1,549,000 1,549,000 - Interest and fiscal charges 747,618 770,852 23,234 Total expenditures 2,345,849 2,413,005 (67,156) Net Change in Fund Balances $ - 119,889 $ 119,889 Fund Balances, Beginning 4,083,080 Fund Balances, Ending $ 4,202,969 Page 196 of 280 Town of Trophy Club, Texas Schedule of Changes in the Town's Net Pension Liability / (Asset) and Related Ratios - Texas Municipal Retirement System 70 Measurement Date December 31, 2014 2015 2016 2017 Total Pension Liability Service cost $ 809,057 $ 804,453 $ 795,448 $ 789,530 Interest (on the Total Pension Liability) 970,682 1,053,745 1,113,555 1,173,728 Changes of benefit terms (1,544,038) - - - Difference between expected and actual experience (49,303)(237,279)(471,044)(62,418) Change in assumptions - 368,895 - - Benefit payments, including refunds of employee contributions (450,100)(632,921)(450,496)(636,604) Net Change in Total Pension Liability (263,702) 1,356,893 987,463 1,264,236 Total Pension Liability - Beginning 15,231,441 14,967,739 16,324,632 17,312,095 Total Pension Liability - Ending 14,967,739 16,324,632 17,312,095 18,576,331 Plan Fiduciary Net Position Contributions - employer 660,364 658,543 593,840 606,585 Contributions - employee 316,613 340,458 329,281 323,389 Net investment income 681,774 19,357 912,155 2,061,434 Benefit payments, including refunds of employee contributions (450,100)(632,921)(450,496)(636,604) Administrative expense (7,117)(11,788)(10,296)(10,676) Other (585)(582)(555)(541) Net Change in Plan Fiduciary Net Position 1,200,949 373,067 1,373,929 2,343,587 Plan Fiduciary Net Position - Beginning 11,915,329 13,116,278 13,489,345 14,863,274 Plan Fiduciary Net Position - Ending 13,116,278 13,489,345 14,863,274 17,206,861 Net Pension Liability / (Asset) - Ending $ 1,851,461 $ 2,835,287 $ 2,448,821 $ 1,369,470 Plan Fiduciary Net Position as a Percentage of Total Pension Liability 87.63%82.63%85.85%92.63% Covered Payroll $ 4,523,041 $ 4,863,685 $ 4,704,011 $ 4,619,838 Net Pension Liability / (Asset) as a Percentage of Covered Payroll 40.93%58.30%52.06%29.64% Other Information: For the 2015 valuation, inflation used was 2.5%, investment rate of return and discount rate used was 6.75% and actuarial studies were updated through December 31, 2014. For the 2019 valuation, actuarial studies were updated through December 31, 2018. For the 2023 valuation, actuarial studies were updated through December 31, 2022. Page 197 of 280 71 2018 2019 2020 2021 2022 2023 $ 863,553 $ 980,663 $ 1,044,859 $ 1,059,781 $ 1,068,025 $ 1,138,934 1,263,163 1,354,175 1,466,317 1,572,070 1,707,812 1,838,912 - - - - - - (258,925)(3,497)(142,491) 191,092 26,108 637,486 - (802) - - - (91,511) (589,161)(566,895)(835,638)(783,233)(848,925)(941,420) 1,278,630 1,763,644 1,533,047 2,039,710 1,953,020 2,582,401 18,576,331 19,854,961 21,618,605 23,151,652 25,191,362 27,144,382 19,854,961 21,618,605 23,151,652 25,191,362 27,144,382 29,726,783 633,832 710,975 760,116 808,487 758,653 822,888 347,155 384,574 406,480 420,786 422,144 454,276 (515,889) 2,642,216 1,537,272 2,883,176 (1,856,921) 2,766,470 (589,161)(566,895)(835,638)(783,233)(848,925)(941,420) (9,961)(14,914)(9,935)(13,322)(16,045)(17,583) (520)(448)(388) 91 19,147 (123) (134,544) 3,155,508 1,857,907 3,315,985 (1,521,947) 3,084,508 17,206,861 17,072,317 20,227,825 22,085,732 25,401,717 23,879,770 17,072,317 20,227,825 22,085,732 25,401,717 23,879,770 26,964,278 $ 2,782,644 $ 1,390,780 $ 1,065,920 $(210,355) $ 3,264,612 $ 2,762,505 85.99%93.57%95.40%100.84%87.97%90.71% $ 4,954,406 $ 5,493,911 $ 5,722,119 $ 6,011,235 $ 6,030,633 $ 6,489,651 56.17%25.31%18.63%-3.50%54.13%42.57% Page 198 of 280 Town of Trophy Club, Texas Schedule of Contributions Texas Municipal Retirement System 72 Fiscal Year Ended September 30, 2015 2016 2017 2018 Actuarially determined contribution $ 642,631 $ 627,419 $ 598,176 $ 638,736 Contribution in relation of the actuarially determined contribution 642,631 627,419 598,176 638,736 Contribution deficiency (excess) $ - $ - $ - $ - Covered payroll $ 4,617,652 $ 4,822,763 $ 4,559,463 $ 4,911,902 Contributions as a percentage of covered payroll 13.92%13.01%13.12%13.00% Notes to Required Supplementary Information - TMRS Notes to Schedule of Contributions Valuation Date: Notes Actuarially determined contribution rates are calculated as of December 31 and become effective in January 13 months later. Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Payroll, Closed Remaining Amortization Period 22 years (longest amortization ladder) Asset Valuation Method 10 Year smoothed fair value; 12% soft corridor Inflation 2.50% Salary Increases 3.60% to 11.85%, including inflation Investment Rate of Return 6.75% Retirement Age Experience-based table of rates that are specific to the Town's plan of benefits. Last updated for the 2023 valuation pursuant to an experience study of the period ending 2022 Mortality Post-retirement: 2019 Municipal Retirees of Texas Mortality Tables. Male rates are multiplied by 103% and female rates are multiplied by 105% The rates are projected on a fully generational basis by the most recent Scale MP-2021 (with immediate convergence). Pre-retirement: PUB(10) mortality tables, with the 110% of the Public Safety table used for males and the 100% of the General Employee table used for females. The rates are projected on a fully generational basis by the most recent Scale MP-2021 (with immediate convergence). Other Information: Notes There were no benefit changes during the year. Page 199 of 280 73 2019 2020 2021 2022 2023 2024 $ 736,208 $ 728,124 $ 810,363 $ 793,562 $ 808,561 $ 930,909 736,208 728,124 810,363 793,562 808,561 930,909 $ - $ - $ - $ - $ - $ - $ 5,640,011 $ 5,524,768 $ 5,985,416 $ 6,195,743 $ 6,387,617 $ 7,072,426 13.05%13.18%13.54%12.81%12.66%13.16% Page 200 of 280 Town of Trophy Club, Texas Schedule of Changes in the Town's Total OPEB Liability and Related Ratios Texas Municipal Retirement System Supplemental Death Benefits Fund 74 Measurement Date December 31, 2017 2018 2019 2020 2021 2022 2023 Total OPEB Liability Service cost $ 10,164 $ 12,386 $ 15,383 $ 21,744 $ 27,652 $ 26,535 $ 12,979 Interest (on the Total OPEB Liability) 6,033 6,400 7,252 7,204 6,517 6,863 9,683 Difference between expected and actual experience - (887)(4,443)(12,515) 4,559 (21,220)(10,491) Change in assumptions 17,400 (16,237) 46,233 46,896 12,575 (134,894) 13,431 Benefit payments (924)(991)(1,099)(1,144)(3,607)(3,618)(5,192) Net Change in Total OPEB Liability 32,673 671 63,326 62,185 47,696 (126,334) 20,410 Total OPEB Liability - Beginning 154,985 187,658 188,329 251,655 313,840 361,536 235,202 Total OPEB Liability - Ending $ 187,658 $ 188,329 $ 251,655 $ 313,840 $ 361,536 $ 235,202 $ 255,612 Covered Employee Payroll $ 4,619,838 $ 4,954,406 $ 5,493,911 $ 5,722,119 $ 6,011,235 $ 6,030,633 $ 6,489,651 Total OPEB Liability as a Percentage of Covered-Employee Payroll 4.06%3.80%4.58%5.48%6.01%3.90%3.94% Notes to Schedule: Changes of Benefit Terms:None Changes of Assumptions:1) Changes of assumptions and other inputs reflect the effects of changes in the discount rate each period. The following are the discount rates used in each period: 2016 3.78% 2017 3.00% 2018 4.10% 2019 2.75% 2020 2.00% 2021 1.84% 2022 4.05% 2023 3.77% No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB 75 to pay related benefits. This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, the Town will present information for only those years for which information is available. Page 201 of 280 Town of Trophy Club, Texas Schedule of Changes in the Town's Total OPEB Liability and Related Ratios Retiree Health Care Plan 75 Measurement Date September 30, 2018 2019 2020 2021 2022 2023 2024 Total OPEB Liability Service cost $ 5,179 $ 5,389 $ 5,389 $ 6,570 $ 6,570 $ 4,185 $ 4,185 Interest (on the Total OPEB Liability) 2,019 2,101 2,624 1,489 1,670 2,389 2,703 Difference between expected and actual experience - - (1,194) - (16,109) - (11,470) Change in assumptions - - (6,481) - (13,868) - 3,758 Net Change in Total OPEB Liability 7,198 7,490 338 8,059 (21,737) 6,574 (824) Total OPEB Liability - Beginning 44,561 51,759 59,249 59,587 67,646 45,909 52,483 Total OPEB Liability - Ending $ 51,759 $ 59,249 $ 59,587 $ 67,646 $ 45,909 $ 52,483 $ 51,659 Covered Employee Payroll $ 4,911,902 $ 5,493,911 $ 5,524,768 $ 5,985,416 $ 6,195,743 $ 6,387,617 $ 5,853,817 Total OPEB Liability as a Percentage of Covered-Employee Payroll 1.05%1.08%1.08%1.13%0.74%0.82%0.88% Notes to Schedule: Changes of Benefit Terms:None Changes of Assumptions:1) Changes of assumptions and other inputs reflect the effects of changes in the discount rate each period. The following are the discount rates used in each period: 2017 4.06% 2018 4.06% 2019 2.25% 2020 2.25% 2021 2.25% 2022 4.77% 2023 4.77% 2024 4.06% No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB 75 to pay related benefits. This schedule is presented to illustrate the requirement to show information for 10 years. However, until a full 10-year trend is compiled, the Town will present information for only those years for which information is available. Page 202 of 280 Combining and Individual Fund Financial Statements and Schedules (Unaudited) Page 203 of 280 Page 204 of 280 Nonmajor Governmental Funds Special Revenue Funds Hotel Occupancy Tax Fund – This fund is used to account for local hotel and motel occupancy tax receipts, as well as expenses (events). Street Maintenance Sales Tax Fund – Accounts for sales taxes specifically restricted for street improvements. Court Technology Fund – Accounts for court fees specifically restricted for court technology expenses. Court Security Fund – Accounts for court fees specifically restricted for court security expenses. Recreation Programs Fund – Accounts for revenues and expenditures associated with recreational programs. Park Land Dedication Fund – This fund is used to account for park revenues received by and expended by the Town. Grant Fund –This fund is used to account for certain grant monies received by and expended by the Town. Tax Increment Reinvestment Zone No. 1 – Accounts for revenues to be used in the reinvestment zone. Crime Control and Prevention District – Accounts for the funds received from a one-half one percent sales tax, which can be utilized for public safety. Page 205 of 280 Page 206 of 280 80 Town of Trophy Club, Texas Combining Balance Sheet Nonmajor Governmental Funds September 30, 2024 Hotel Occupancy Tax Street Maintenance Sales Tax Court Technology Court Security Recreation Programs Assets Cash and cash equivalents $3,235,580 $481,257 $7,533 $76,544 $29,276 Taxes receivable, net 91,545 62,541 --- Total assets $3,327,125 $543,798 $7,533 $76,544 $29,276 Liabilities and Fund Balances Liabilities Accounts payable $2,452 $7,738 $-$-$390 Accrued liabilities 6,770 3,983 --- Due to component unit -23,405 --- Advances to other funds ----- Total liabilities 9,222 35,126 --390 Fund Balances Restricted: Capital projects ----- Municipal court --7,533 76,544 - Public safety ----- Street maintenance -508,672 --- Tourism 3,317,903 ---- Parks ----- Committed: Recreation programs ----28,886 Total fund balances 3,317,903 508,672 7,533 76,544 28,886 Total liabilities and fund balances $3,327,125 $543,798 $7,533 $76,544 $29,276 Page 207 of 280 81 Park Land Dedication Grant Tax Increment Reinvestment Zone No. 1 Crime Control and Prevention District Total Nonmajor Governmental Funds $632,834 $9,886 $468,532 $255,769 $5,197,211 ---63,517 217,603 $632,834 $9,886 $468,532 $319,286 $5,414,814 $-$-$66,734 $6,601 $83,915 ----10,753 ----23,405 --386,503 -386,503 --453,237 6,601 504,576 --15,295 -15,295 ----84,077 -9,886 -312,685 322,571 ----508,672 ----3,317,903 632,834 ---632,834 ----28,886 632,834 9,886 15,295 312,685 4,910,238 $632,834 $9,886 $468,532 $319,286 $5,414,814 Page 208 of 280 82 Town of Trophy Club, Texas Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Year Ended September 30, 2024 Hotel Occupancy Tax Street Maintenance Sales Tax Court Technology Court Security Recreation Programs Revenues Sales and mixed beverage taxes $-$418,021 $-$-$- Occupancy tax 885,378 ---- Intergovernmental ----- Charges for services ----8,101 Fines and fees --67 26,316 - Investment income 159,312 1,036 --- Other revenue 22,716 ---- Total revenues 1,067,406 419,057 67 26,316 8,101 Expenditures Current: Municipal court ---2,000 - Police ----- Parks and recreation ----390 Community development ----- Tourism 376,841 ---- Public works -288,375 --- Debt Service: Principal ----- Interest and fiscal charges ----- Capital Outlay -28,999 --- Total expenditures 376,841 317,374 -2,000 390 Excess (Deficiency) of Revenues Over (Under) Expenditures 690,565 101,683 67 24,316 7,711 Other Financing Sources (Uses) Transfers in ----- Transfers out (95,000)(20,000)-(1,500)- Total other financing sources (uses)(95,000)(20,000)-(1,500)- Net Change in Fund Balances 595,565 81,683 67 22,816 7,711 Fund Balances (Deficit), Beginning of Year 2,722,338 426,989 7,466 53,728 21,175 Fund Balances, End of Year $3,317,903 $508,672 $7,533 $76,544 $28,886 Page 209 of 280 83 Park Land Dedication Grant Tax Increment Reinvestment Zone No. 1 Crime Control and Prevention District Total Nonmajor Governmental Funds $-$-$-$424,045 $842,066 ----885,378 ---12,700 12,700 ----8,101 ----26,383 23,796 --570 184,714 201,103 -19,902 -243,721 224,899 -19,902 437,315 2,203,063 ----2,000 ---138,177 138,177 ----390 --67,735 -67,735 ----376,841 ----288,375 ---30,449 30,449 ---731 731 ---212,844 241,843 --67,735 382,201 1,146,541 224,899 -(47,833)55,114 1,056,522 --255,487 -255,487 ----(116,500) --255,487 -138,987 224,899 -207,654 55,114 1,195,509 407,935 9,886 (192,359)257,571 3,714,729 $632,834 $9,886 $15,295 $312,685 $4,910,238 Page 210 of 280 Town of Trophy Club, Texas Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Hotel Occupancy Tax Fund Year Ended September 30, 2024 84 Hotel Original and Occupancy Variance with Final Budget Tax Final Budget Revenues Taxes $ 600,000 $ 885,378 $ 285,378 Investment income 5,000 159,312 154,312 Other revenue 7,500 22,716 15,216 Total revenues 612,500 1,067,406 454,906 Expenditures Tourism 378,309 376,841 (1,468) Capital outlay 100,000 - (100,000) Total expenditures 478,309 376,841 (101,468) Excess of Revenues Over Expenditures 134,191 690,565 353,438 Other Financing Sources (Uses) Transfers out (95,000)(95,000) - Total other financing sources (uses)(95,000)(95,000) - Net Change in Fund Balance $ 39,191 595,565 $ 353,438 Fund Balance, Beginning 2,722,338 Fund Balance, Ending $ 3,317,903 Page 211 of 280 Town of Trophy Club, Texas Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Street Maintenance Tax Fund Year Ended September 30, 2024 85 Street Original and Maintenance Variance with Final Budget Sales Tax Final Budget Revenues Taxes $ 350,000 $ 418,021 $ 68,021 Investment income 1,500 1,036 (464) Total revenues 351,500 419,057 67,557 Expenditures Public works 345,318 288,375 (56,943) Capital outlay - 28,999 28,999 Total expenditures 345,318 317,374 (27,944) Excess of Revenues Over Expenditures 6,182 101,683 (95,501) Other Financing Sources (Uses) Transfers out (20,000)(20,000) - Total other financing sources (uses)(20,000)(20,000) - Net Change in Fund Balance $(13,818) 81,683 $(95,501) Fund Balance, Beginning 426,989 Fund Balance, Ending $ 508,672 Page 212 of 280 Town of Trophy Club, Texas Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Court Technology Fund Year Ended September 30, 2024 86 Original and Court Variance with Final Budget Technology Final Budget Revenues Fines and Fees $ 1,000 $ 67 $(933) Total revenues 1,000 67 (933) Expenditures Court 2,755 - (2,755) Total expenditures 2,755 - (2,755) Net Change in Fund Balance $(1,755) 67 $ 1,822 Fund Balance, Beginning 7,466 Fund Balance, Ending $ 7,533 Page 213 of 280 Town of Trophy Club, Texas Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Court Security Fund Year Ended September 30, 2024 87 Original and Court Variance with Final Budget Security Final Budget Revenues Fines and fees $ 5,000 $ 26,316 $ 21,316 Total revenues 5,000 26,316 21,316 Expenditures Court 2,500 2,000 (500) Total expenditures 2,500 2,000 (500) Excess of Revenues Over Expenditures 2,500 24,316 (21,816) Other Financing Sources (Uses) Transfers out (1,500)(1,500) - Total other financing sources (uses)(1,500)(1,500) - Net Change in Fund Balance $ 1,000 22,816 $ 21,816 Fund Balance, Beginning 53,728 Fund Balance, Ending $ 76,544 Page 214 of 280 Town of Trophy Club, Texas Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Recreation Programs Fund Year Ended September 30, 2024 88 Original and Recreation Variance with Final Budget Programs Final Budget Revenues Charges for services $ 6,000 $ 8,101 $ 2,101 Total revenues 6,000 8,101 2,101 Expenditures Parks and recreation 6,000 390 (5,610) Total expenditures 6,000 390 (5,610) Net Change in Fund Balance $ - 7,711 $ 7,711 Fund Balance, Beginning 21,175 Fund Balance, Ending $ 28,886 Page 215 of 280 Town of Trophy Club, Texas Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Park Land Dedication Fund Year Ended September 30, 2024 89 Original and Park Land Variance with Final Budget Dedication Final Budget Revenues Investment income $ 1,750 $ 23,796 $ 22,046 Other revenue - 201,103 201,103 Total revenues 1,750 224,899 223,149 Expenditures Capital outlay 97,000 - (97,000) Total expenditures 97,000 - (97,000) Net Change in Fund Balance $(95,250) 224,899 $ 320,149 Fund Balance, Beginning 407,935 Fund Balance, Ending $ 632,834 Page 216 of 280 Town of Trophy Club, Texas Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Tax Increment Reinvestment Zone No. 1 Fund Year Ended September 30, 2024 90 Tax Increment Original and Reinvestment Variance with Final Budget Zone No. 1 Final Budget Revenues Taxes $ 161,083 $ - $(161,083) Other revenue - 19,902 19,902 Total revenues 161,083 19,902 (141,181) Expenditures Community development 59,379 67,735 8,356 Total expenditures 59,379 67,735 8,356 Excess (Deficiency) of Revenues Over (Under) Expenditures 101,704 (47,833) 149,537 Other Financing Sources (Uses) Transfers in - 255,487 255,487 Total other financing sources (uses) - 255,487 255,487 Net Change in Fund Balance $ 101,704 207,654 $ 105,950 Fund Balance/(Deficit), Beginning (192,359) Fund Balance/(Deficit), Ending $ 15,295 Page 217 of 280 Town of Trophy Club, Texas Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Crime Control and Prevention District Fund Year Ended September 30, 2024 91 Crime Control Original and and Variance with Final Budget Prevention District Final Budget Revenues Taxes $ 350,000 $ 424,045 $ 74,045 Intergovernmental - 12,700 12,700 Investment income 1,000 570 (430) Total revenues 351,000 437,315 86,315 Expenditures Police 449,436 138,177 (311,259) Debt Service - Principal - 30,449 30,449 Debt Service - Interest and Fiscal Charges - 731 731 Capital outlay - 212,844 212,844 Total expenditures 449,436 382,201 (67,235) Net Change in Fund Balance $(98,436) $ 55,114 $ 153,550 Fund Balance, Beginning 257,571 Fund Balance, Ending $ 312,685 Page 218 of 280 Discretely Presented Component Unit Economic Development Corporation – to aid, promote and further economic development within the Town. Page 219 of 280 Page 220 of 280 Town of Trophy Club, Texas Balance Sheet Component Unit September 30, 2024 94 Economic Development Corporation Assets Cash and cash equivalents $ 2,190,353 Taxes receivable, net 129,550 Due from primary government 35,105 Notes receivable 149,250 Total assets 2,504,258 Liabilities Accounts payable 8,221 Total liabilities 8,221 Fund Balance Restricted: Debt service 227,827 Economic development 2,268,210 Total fund balance 2,496,037 Total liabilities and fund balance $ 2,504,258 Page 221 of 280 Town of Trophy Club, Texas Reconciliation of the Balance Sheet to the Statement of Net Position Economic Development Corporation September 30, 2024 95 Amounts reported in the statement of net position are different because: Total fund balance $ 2,496,037 Capital assets, net of accumulated depreciation, are not financial resources and, therefore, are not reported in the fund financial statements. 2,775,407 Interest payable on long-term debt does not require current financial resources, therefore interest payable is not reported as a liability in the fund financial statements.(5,700) Long-term liabilities, including bonds payable and related discount, are not due and payable in the current period and, therefore are not reported in the fund financial statements.(1,705,456) Total Net Position $ 3,560,288 Page 222 of 280 Town of Trophy Club, Texas Statement of Revenues, Expenditures and Changes in Fund Balance Component Unit Year Ended September 30, 2024 96 Economic Development Corporation Revenues Sales and mixed beverage taxes $ 865,900 Investment income 88,512 Total revenues 954,412 Expenditures Current: Economic Development 59,022 Debt Service: Principal 120,000 Interest and fiscal charges 83,644 Total expenditures 262,666 Change in Fund Balance 691,746 Fund Balance, Beginning of Year 1,804,291 Fund Balance, End of Year $ 2,496,037 Page 223 of 280 Town of Trophy Club, Texas Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance to the Statement of Activities Economic Development Corporation Year Ended September 30, 2024 97 Amounts reported in the statement of activities are different because: Net change in fund balances $ 691,746 The fund reports capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount of deprecation expense recorded in the current period. (24,693) The repayment of the principal of long-term debt consumes the current financial resources of the fund, but has no effect on net position. 120,000 Some expenses reported in the statement of activities do/(do not) require the use of current financial resources and, therefore, (are)/are not reported as expenditures in the fund. Amortization of bond discount (1,333) Current year changes in accrued interest on long-term debt 755 Change in net position of governmental activities $ 786,475 Page 224 of 280 Statistical Section Page 225 of 280 Page 226 of 280 Statistical Section (Unaudited) This part of the Town’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Town’s overall financial health. Contents Pages Financial Trends ..........................102-111 These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time. Revenue Capacity .........................112-116 These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax. Debt Capacity ...........................117-120 These schedules present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. Demographic and Economic Information ..................121-123 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place. Operating Information ........................124-125 These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. Page 227 of 280 Page 228 of 280 Town of Trophy Club, Texas Net Position by Component Last Ten Fiscal Years (Unaudited) (accrual basis of accounting) 102 Fiscal Year 2015* 2016 2017 2018** Governmental Activities Net investment in capital assets $ 27,620,857 $ 26,940,643 $ 27,125,337 $ 51,825,867 Restricted 4,035,428 4,433,649 4,676,837 5,478,991 Unrestricted 2,279,194 1,995,960 3,414,190 3,594,662 Total governmental activities $ 33,935,479 $ 33,370,252 $ 35,216,364 $ 60,899,520 Business-type Activities Net investment in capital assets $ 513,930 $ 680,146 $ 776,097 $ 877,048 Unrestricted 163,047 171,755 350,752 633,294 Total business-type activities $ 676,977 $ 851,901 $ 1,126,849 $ 1,510,342 Primary Government Net investment in capital assets $ 28,134,787 $ 27,620,789 $ 27,901,434 $ 52,702,915 Restricted 4,035,428 4,433,649 4,676,837 5,478,991 Unrestricted 2,442,241 2,167,715 3,764,942 4,227,956 Total primary government $ 34,612,456 $ 34,222,153 $ 36,343,213 $ 62,409,862 *The Town implemented GASB Statement No. 68 for the year ended September 30, 2015. ** The Town implemented GASB Statement No. 75 for the year ended September 30, 2018. Page 229 of 280 Table 1 103 2019 2020 2021 2022 2023 2024 $ 52,718,444 $ 51,061,357 $ 27,008,067 $ 28,391,158 $ 28,947,808 $ 30,100,766 6,112,682 6,821,486 29,052,071 27,278,448 8,185,798 9,320,172 4,107,003 5,321,576 5,265,710 6,394,425 25,732,138 25,856,754 $ 62,938,129 $ 63,204,419 $ 61,325,848 $ 62,064,031 $ 62,865,744 $ 65,277,692 $ 982,997 $ 1,121,475 $ 1,240,768 $ 1,497,757 $ 1,678,173 $ 1,781,537 741,325 706,200 1,077,789 1,507,834 1,982,061 2,301,328 $ 1,724,322 $ 1,827,675 $ 2,318,557 $ 3,005,591 $ 3,660,234 $ 4,082,865 $ 53,701,441 $ 52,182,832 $ 28,248,835 $ 29,888,915 $ 30,625,981 $ 31,882,303 6,112,682 6,821,486 29,052,071 27,278,448 8,185,798 9,320,172 4,848,328 6,027,776 6,343,499 7,902,259 27,714,199 28,158,082 $ 64,662,451 $ 65,032,094 $ 63,644,405 $ 65,069,622 $ 66,525,978 $ 69,360,557 Page 230 of 280 Town of Trophy Club, Texas Changes in Net Position Last Ten Fiscal Years (Unaudited) (accrual basis of accounting) 104 Fiscal Year 2015* 2016 2017 2018** Expenses Governmental activities General government $ 1,955,949 $ 2,728,642 $ 2,533,298 $ 3,398,500 Manager's office - - - - Town secretary - - - - Mayor & council - - - - Human resources - - - - Finance - - - - Information services - - - - Legal - - - - Court - - - - Public safety 2,306,609 3,540,703 4,607,380 4,429,744 Facilities management - - - - Streets - - - - Sanitation - - - - PID activities 2,736,000 2,122,901 48,520 2,850 Parks and recreation 2,253,982 2,652,384 2,761,053 2,644,329 Pools - - - - Community development 436,090 640,404 738,659 695,637 Public works (Streets and infrastructure) 1,716,531 1,878,119 1,728,809 1,671,692 Water and sewer 319,054 319,054 - - Storm drainage 234,339 234,287 - - Interest on long-term debt 469,923 496,019 2,365,059 2,771,762 Total governmental activities expenses 12,428,477 14,612,513 14,782,778 15,614,514 Business-type activities Storm Drainage 205,331 174,499 120,295 129,722 Trophy Club Park 123,445 109,325 116,477 93,677 Total business-type activities expenses 328,776 283,824 236,772 223,399 Total primary government expenses $ 12,757,253 $ 14,896,337 $ 15,019,550 $ 15,837,913 Program Revenues Governmental activities Charges for services General government $ - $ - $ - $ - Court - - - - Police - - - - Fire - - - - Emergency medical services - - - - Parks and recreation - - - - Community Development 702,578 605,558 - - Sanitation - - - - Public works - - - - Other 2,669,738 2,593,969 3,705,774 3,982,406 Operating grants and contributions 550,495 141,071 581,633 443,752 Capital grants and contributions 1,254,997 - - - Total governmental activities program revenues 5,177,808 3,340,598 4,287,407 4,426,158 Business-type activities Charges for services Storm Drainage 484,874 466,934 596,520 592,322 Trophy Club Park - - - - Operating grants and contributions - 61,106 - 94,521 Capital grants and contributions - - - - Total business-type activities program revenues 484,874 528,040 596,520 686,843 Total primary government program revenues $ 5,662,682 $ 3,868,638 $ 4,883,927 $ 5,113,001 *The Town implemented GASB Statement No. 68 for the year ended September 30, 2015. ** The Town Implemented GASB Statement No. 75 for the year ended September 30, 2018. Page 231 of 280 Table 2 105 2019 2020 2021 2022 2023 2024 $ 3,650,893 $ 3,561,521 $ 1,381,483 $ 663,394 $ 899,894 $ 632,029 - - 936,032 567,704 782,210 486,130 - - - - - 212,947 - - - - - 7,662 - - 280,147 205,246 278,174 357,993 - - 512,144 549,792 518,064 617,969 - - 647,888 543,189 673,596 598,600 - - 118,756 189,141 159,807 138,548 - - 49,837 258,489 92,313 250,929 5,109,461 5,139,151 5,616,921 6,008,021 7,076,418 7,987,904 - - 448,538 1,455,292 1,425,387 1,501,274 - - 317,005 396,974 653,518 382,094 - - 1,057,653 - - - 26,875 50,152 - - - - 2,871,283 2,593,588 2,674,646 2,864,327 3,093,727 3,132,835 - - - - - - 717,215 563,312 639,321 471,539 552,382 606,080 2,371,290 2,052,018 2,308,861 2,315,082 2,358,623 2,762,037 - - - - - - - - - - - - 2,663,286 1,639,671 1,535,312 1,278,873 1,371,710 1,406,043 17,410,303 15,599,413 18,524,544 17,767,063 19,935,823 21,081,074 131,370 93,912 126,163 144,131 176,590 284,437 122,186 229,670 125,692 169,456 127,025 135,419 253,556 323,582 251,855 313,587 303,615 419,856 $ 17,663,859 $ 15,922,995 $ 18,776,399 $ 18,080,650 $ 20,239,438 $ 21,500,930 $ - $ - $ 286,695 $ 321,725 $ 269,132 $ 321,820 - - 110,550 380,427 219,645 349,697 - - 123,942 101,556 142,470 161,706 - - 1,344,545 1,444,477 1,492,123 1,747,461 - - 95,775 130,805 193,982 162,587 - - 301,668 342,996 397,773 355,367 - - 1,775 6,340 5,805 10,250 - - 1,058,213 1,059,841 1,091,668 1,141,025 - - 9,670 7,485 8,675 5,175 3,266,108 1,797,916 - - - - 1,392,787 2,056,622 37,851 173,599 92,029 159,362 2,127,040 - 150,000 - - - 6,785,935 3,854,538 3,520,684 3,969,251 3,913,302 4,414,450 539,295 430,303 435,798 435,559 437,219 432,307 - 188,708 185,981 289,336 268,703 182,116 - - 4,170 125,468 31,750 - 3,360 68,146 - - - - 542,655 687,157 625,949 850,363 737,672 614,423 $ 7,328,590 $ 4,541,695 $ 4,146,633 $ 4,819,614 $ 4,650,974 $ 5,028,873 Page 232 of 280 Town of Trophy Club, Texas Changes in Net Position (Continued) Last Ten Fiscal Years (Unaudited) (accrual basis of accounting) 106 Fiscal Year 2015* 2016 2017 2018** Net (Expense) Revenue Governmental activities $(7,250,669) $(11,271,915) $(10,495,371) $(11,188,356) Business-type activities 156,098 244,216 359,748 463,444 Total primary government net (expense) revenue $(7,094,571) $(11,027,699) $(10,135,623) $(10,724,912) General Revenues And Other Changes In Net Position Governmental activities Taxes Property taxes $ 7,447,069 $ 7,714,564 $ 8,269,141 $ 8,412,231 Sales and mixed beverage taxes 1,104,298 1,217,693 1,306,243 1,150,073 Other taxes 1,027,407 1,255,995 1,376,352 1,486,952 Investment income 11,331 65,709 146,015 259,220 Miscellaneous revenues 100,202 382,521 908,540 197,567 Special items - - - - Gain on disposal of assets - - - - Transfers 35,350 70,206 86,887 87,209 Total governmental activities 9,725,657 10,706,688 12,093,178 11,593,252 Business-type activities Investment income 143 914 2,087 7,258 Special items - - - - Transfers 35,350 70,206 86,887 87,209 Total business-type activities 35,493 71,120 88,974 94,467 Total primary government $ 9,761,150 $ 10,777,808 $ 12,182,152 $ 11,687,719 Change In Net Position Governmental activities $ 2,474,988 $(565,227) $ 1,597,807 $ 404,896 Business-type activities 191,591 315,336 448,722 557,911 Total primary government change in net position $ 2,666,579 $(249,891) $ 2,046,529 $ 962,807 *The Town implemented GASB Statement No. 68 for the year ended September 30, 2015. **The Town implemented GASB Statement No. 75 for the year ended September 30, 2018. Page 233 of 280 Table 2 107 2019 2020 2021 2022 2023 2024 $(10,624,368) $(11,744,875) $(15,003,860) $(13,797,812) $(16,022,521) $(16,666,624) 289,099 363,575 374,094 536,776 434,057 194,567 $(10,335,269) $(11,381,300) $(14,629,766) $(13,261,036) $(15,588,464) $(16,472,057) $ 8,974,426 $ 9,347,776 $ 9,940,633 $ 10,255,223 $ 11,180,838 $ 11,858,764 1,271,864 1,445,994 2,035,404 2,290,748 2,358,255 2,630,932 1,581,721 1,238,302 1,261,872 1,689,864 1,838,706 1,914,590 512,922 183,858 72,940 244,451 1,289,627 2,095,412 235,107 414,384 62,904 197,903 313,150 721,499 - 882,082 - - - - - - - - - - 86,937 262,933 (116,463)(142,194)(156,342)(142,625) 12,662,977 13,775,329 13,257,290 14,535,995 16,824,234 19,078,572 11,818 2,711 325 8,264 64,244 85,289 - - - - - 150 86,937 262,933 116,463 142,194 156,342 142,625 98,755 265,644 116,788 150,458 220,586 228,064 $ 12,761,732 $ 14,040,973 $ 13,374,078 $ 14,686,453 $ 17,044,820 $ 19,306,636 $ 2,038,609 $ 2,030,454 $(1,746,570) $ 738,183 $ 801,713 $ 2,411,948 387,854 629,219 490,882 687,234 654,643 422,631 $ 2,426,463 $ 2,659,673 $(1,255,688) $ 1,425,417 $ 1,456,356 $ 2,834,579 Page 234 of 280 Town of Trophy Club, Texas Fund Balances of Governmental Funds Last Ten Fiscal Years (Unaudited) (modified accrual basis of accounting) 108 Fiscal Year 2015 2016 2017 2018 General Fund Nonspendable $ 1,816 $ 54,397 $ 91,278 $ 430,977 Committed 228,138 - - - Assigned 200,000 189,475 183,858 182,718 Unassigned 3,261,235 3,950,290 4,335,983 4,826,823 Total general fund $ 3,691,189 $ 4,194,162 $ 4,611,119 $ 5,440,518 All Other Governmental Funds Restricted: Debt Service $ 118,542 $ 143,174 $ 309,043 $ 262,277 Capital Projects 1,694,546 8,764,936 6,285,515 5,764,419 Municipal court 43,422 39,668 37,819 37,155 Public Safety 134,265 210,189 71,259 9,886 Street Maintenance 65,306 - 92,856 29,337 Tourism 475,748 564,363 399,883 790,686 Parks - - - 467,425 PID No. 1 4,229,068 3,869,425 3,832,851 3,882,225 Town Anniversary 3,497 - - - Committed: Recreation programs 3,395 2,269 7,307 3,655 Unassigned 6,327 5,017 - - Total all other governmental funds $ 6,774,116 $ 13,599,041 $ 11,036,533 $ 11,247,065 Page 235 of 280 Table 3 109 2019 2020 2021 2022 2023 2024 $ 389,687 $ 389,112 $ 727,449 $ 427,772 $ 435,113 $ 442,729 - - - - - - 177,130 169,592 - - - - 5,256,436 6,988,719 6,876,307 7,916,625 9,981,221 12,376,571 $ 5,823,253 $ 7,547,423 $ 7,603,756 $ 8,344,397 $ 10,416,334 $ 12,819,300 $ 473,670 $ 706,640 $ 4,357,220 $ 4,078,885 $ 4,289,334 $ 4,454,115 3,568,072 1,984,646 6,199,646 4,952,458 10,606,605 10,711,565 30,036 32,838 36,824 44,638 61,194 84,077 9,886 9,886 284,013 290,366 267,457 322,571 92,457 184,556 302,901 436,702 426,989 508,672 1,313,981 1,530,643 1,726,744 2,275,553 2,722,338 3,317,903 220,464 385,727 536,001 350,554 407,935 632,834 3,972,188 3,971,196 - - - - - - - - - - 3,028 5,062 7,710 21,550 21,175 28,886 - - (327,716)(226,168)(192,359) - $ 9,683,782 $ 8,811,194 $ 13,123,343 $ 12,224,538 $ 18,610,668 $ 20,060,623 Page 236 of 280 Town of Trophy Club, Texas Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Unaudited) (modified accrual basis of accounting) 110 Fiscal Year 2015 2016 2017 2018 Revenues Taxes Ad valorem taxes $ 7,469,912 $ 7,724,244 $ 8,132,670 $ 8,600,999 Sales and mixed beverage taxes 1,104,298 1,217,694 1,306,243 1,150,073 Franchise taxes 811,052 953,622 888,863 867,446 Occupancy 264,708 302,374 487,489 619,506 Special assessments 1,917,636 1,986,516 2,129,321 2,166,167 Licenses, permits & fees 697,378 598,586 333,780 614,931 Intergovernmental 326,195 26,237 581,633 608,910 Charges for services 293,011 310,735 820,530 767,237 Fines & Fees 580,648 362,409 355,504 497,078 Lease revenue - - - - Interest revenue - leases - - - - Investment Income 11,330 65,708 146,015 259,213 Grant revenue 147,691 7,942 - - Miscellaneous 100,202 407,418 158,540 715,535 Total revenues 13,724,061 13,963,485 15,340,588 16,867,095 Expenditures Current General government 2,273,447 2,349,120 2,191,140 2,404,704 Manager's office - - - - Town secretary - - - - Mayor & council - - - - Human resources - - - - Finance - - - - Information services - - - - Legal - - - - Court - - - - PID activities 314,344 81,793 44,984 2,850 Public safety 2,896,632 3,187,064 4,117,992 4,441,873 Facilities management - - - - Streets - - - - Sanitation - - - - Public works 516,035 566,927 179,448 340,910 Community development 479,477 576,508 582,259 449,178 Pool - - - - Culture & recreation 1,799,204 1,892,065 1,991,571 2,708,827 Debt service Principal 1,438,000 2,153,974 1,567,004 1,675,350 Interest and fiscal changes 2,546,971 3,396,480 2,630,171 2,796,835 Capital outlay 3,466,307 3,395,509 9,146,919 1,239,065 Total expenditures 15,730,417 17,599,440 22,451,488 16,059,592 Excess (Deficiency) of Revenues Over Expenditures (2,006,356)(3,635,955)(7,110,900) 807,503 Other Financing Sources (Uses) Proceeds from lease obligation - - - 264,732 Proceeds from contractual obligations - 4,210,000 - - Sale of general capital assets - - - - Insurance recoveries - - - - Proceeds from bonds 2,030,000 31,399,979 4,445,000 - Premium on bonds - 5,020,788 128,317 - Payment to refunded bond escrow agent 2,026,710 29,734,500 - - Lease financing - - - - Transfers in 63,350 493,947 993,250 298,457 Transfers out 28,000 423,741 906,363 63,817 Total other financing sources (uses) 4,148,060 71,282,955 6,472,930 627,006 Net Change in Fund Balances $ 2,141,704 $ 67,647,000 $(637,970) $ 1,434,509 Debt Service as a Percentage of Noncapital Expenditures 32.49%39.08%31.55%30.18% Page 237 of 280 Table 4 111 2019 2020 2021 2022 2023 2024 $ 8,967,795 $ 9,359,847 $ 9,941,321 $ 10,262,914 $ 11,207,851 $ 11,851,078 1,271,864 1,445,994 2,035,404 2,290,748 2,358,255 2,630,932 911,738 850,543 869,212 908,033 1,016,222 1,029,212 669,983 387,759 392,660 781,831 822,484 885,378 2,176,400 2,187,165 2,195,144 2,263,090 2,267,110 2,275,465 499,302 479,513 284,500 280,222 253,027 356,502 724,333 2,056,622 1,365,324 1,601,656 1,567,063 1,890,204 769,962 296,947 1,431,343 1,484,550 1,524,037 1,661,781 312,267 132,877 337,123 618,956 432,505 505,963 - - - 83,834 107,834 105,010 - - - 24,288 20,188 15,712 512,922 183,858 72,940 244,451 1,289,627 2,095,412 - - - - - - 402,894 386,615 212,904 66,440 216,732 603,864 17,219,460 17,767,740 19,137,875 20,911,013 23,082,935 25,906,513 3,164,364 2,584,454 973,869 270,272 383,218 234,849 - - 973,427 620,172 758,661 473,438 - - - - - 208,835 - - - - - 7,662 - - 287,521 216,058 268,107 351,267 - - 528,002 583,304 504,727 608,058 - - 595,432 492,761 641,317 572,452 - - 118,756 189,141 159,807 138,548 - - 51,347 258,489 92,313 250,929 26,875 50,152 - - - - 4,872,242 4,977,216 5,616,394 6,162,615 6,547,801 7,531,929 - - 450,853 1,460,399 1,425,314 1,501,274 - - 319,943 402,212 644,687 376,841 - - 1,057,653 - - - 414,938 388,419 204,633 207,684 231,437 617,296 568,239 491,941 654,107 490,655 524,674 578,444 - - - - - - 2,250,599 2,380,448 1,922,721 2,138,251 2,308,047 2,421,914 1,723,652 3,081,206 3,408,000 3,582,199 3,397,255 3,550,451 2,811,664 1,614,385 1,452,214 1,396,045 1,479,107 1,518,583 2,860,040 1,735,016 508,748 2,647,445 2,325,253 976,471 18,692,613 17,303,237 19,123,620 21,117,702 21,691,725 21,919,241 (1,473,153) 464,503 14,255 (206,689) 1,391,210 3,987,272 - - - - - - - - - - - - - 32,213 - 60,142 54,208 8,274 - 27,769 - - - - - 3,550,000 4,305,000 - 6,925,000 - - - 297,691 - 257,608 - - 3,485,838 - - - - - - - 90,577 26,383 - 89,937 264,433 686,235 266,609 246,754 406,987 3,000 1,500 (802,698)(408,803)(403,096)(549,612) 92,937 7,361,753 4,486,228 8,525 7,106,857 (134,351) $(1,380,216) $ 7,826,256 $ 4,500,483 $(198,164) $ 8,498,067 $ 3,852,921 28.65%30.16%26.11%26.95%25.18%24.20% Page 238 of 280 Town of Trophy Club, Texas Table 5 Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (Unaudited) 112 Estimated Market Value Less:Total Taxable Total Direct Fiscal Real Non Real Tax Exempt Assessed Tax Year Property Property Property Value Rate 2015 $ 1,426,754,517 $ 20,304,259 $ 64,382,412 $ 1,382,676,364 $ 0.49000 2016 1,618,577,881 28,301,916 68,622,814 1,578,256,983 0.48400 2017 1,816,191,857 29,805,970 73,301,474 1,772,696,353 0.47300 2018 1,986,456,291 32,335,529 83,492,349 1,935,299,471 0.45144 2019 2,146,374,412 34,488,137 79,947,523 2,100,915,026 0.44644 2020 2,245,060,094 34,337,805 173,637,626 2,105,760,273 0.44644 2021 2,571,479,079 41,659,656 210,421,213 2,402,717,522 0.44644 2022 2,732,597,188 30,337,600 213,411,764 2,549,523,024 0.44500 2023 3,069,209,272 29,159,280 220,375,646 2,877,992,906 0.41547 2024 3,275,722,564 32,074,104 230,181,814 3,077,614,854 0.41547 Source: Denton & Tarrant County Central Appraisal District Certified Roll Note: Total Taxable Assessed Value is not adjusted for tax ceilings. Page 239 of 280 Town of Trophy Club, Texas Direct and Overlapping Property Tax Rates (Per $100 of Assessed Value) Last Ten Fiscal Years (Unaudited) 113 Town of Trophy Club Overlapping Rates Debt Trophy Trophy Fiscal Operating Service Total Town Northwest Club Club Denton Year Mileage Mileage Mileage ISD MUD #1 MUD #2 County 2015 $ 0.380000 $ 0.110000 $ 0.490000 $ 1.452500 $ 0.133390 $ - $ 0.272200 2016 0.374000 0.110000 0.484000 1.452500 0.131140 - 0.262000 2017 0.363000 0.110000 0.473000 1.452500 0.127220 - 0.248409 2018 0.341442 0.110000 0.451442 1.490000 0.120210 - 0.237181 2019 0.336442 0.110000 0.446442 1.490000 0.116180 - 0.225574 2020 0.336442 0.110000 0.446442 1.420000 0.112730 - 0.225278 2021 0.336442 0.110000 0.446442 1.420000 0.105880 - 0.224985 2022 0.335000 0.099799 0.434799 1.292000 0.091340 - 0.233086 2023 0.315670 0.099799 0.415469 1.274600 0.063810 - 0.189485 2024 0.315670 0.099799 0.415469 1.087900 0.062500 - 0.187869 Source: Denton & Tarrant County Appraisal Districts Page 240 of 280 Table 6 114 Overlapping Rates Total Trophy Tarrant Tarrant Total Total Total Direct & Club Tarrant County County MUD #1 MUD #2 PID #1 ESD Overlapping PID #1 ESD County College Hospital Mileage Mileage Mileage Rates $ 0.077270 $ 0.264000 $ 0.149500 $ 0.227897 $ 2.948860 N/A $ 2.401970 $ 3.066757 0.072220 0.264000 0.149500 0.227897 2.925360 N/A 2.380720 3.043257 0.074450 0.254000 0.144730 0.227897 2.884309 N/A 2.358359 3.002206 0.068700 0.244000 0.140060 0.224429 2.861593 N/A 2.357323 2.976022 0.067190 0.234000 0.136070 0.224429 2.825456 N/A 2.339206 2.939885 0.067380 0.234000 0.130170 0.224429 2.204450 N/A 2.269100 2.860429 0.064760 0.229000 0.130170 0.224429 2.197307 N/A 2.266187 2.845666 0.064180 0.224000 0.130170 0.229000 2.051225 N/A 2.123864 2.698575 0.056250 0.194500 0.112170 0.194500 1.943364 N/A 2.035603 2.500784 0.051360 0.187500 0.112280 0.182500 1.753738 N/A 1.842397 2.287378 Page 241 of 280 Town of Trophy Club, Texas Principal Property Taxpayers Current Year and Ten Years Ago (Unaudited) Table 7 115 2024 2015 Percentage of Percentage of Taxable Total Taxable Taxable Total Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value NAP Trophy Club LP $ 67,769,295 1 2.35% $ - n/a -% Armore Trophy Club LLC 19,400,000 2 0.67% 8,950,000 3 0.74% TC Town Center 1 LP 18,724,300 3 0.65% - n/a -% Trophy Club 18 LLC 18,391,053 4 0.64% - n/a -% KAGR Trophy Club 2800 LLC 17,400,000 5 0.60% - n/a -% Trophy Lodging LTD 9,500,000 6 0.33% - n/a -% Quasar Hotels LLC 9,060,000 7 0.31% - n/a -% 4663 Okeechobee Blvd. & Palm Beach Holdings 8,812,000 8 0.31% 5,352,159 7 0.44% Hydra Hotels LLC 8,519,000 9 0.30% 6,520,997 4 0.54% Armore II - Quorum LLC 8,500,000 10 0.30% - n/a -% Clubcorp Golf Tex LP P/S - n/a -% 5,080,864 8 0.42% Cnl Retmt CRSI Trophy Cl Tx LP - n/a -% 18,000,000 1 1.48% Trophy Club 12 LLC - n/a -% 14,481,513 2 1.19% Trophy Club Medical Center LP - n/a -% 5,563,287 5 0.46% First Texas Homes INC - n/a -% 5,009,276 9 0.41% Lennar Homes of Texas Land & Construction LTD - n/a -% 5,497,526 6 0.45% Trophy Club Equities - n/a -% 4,250,000 10 0.35% Totals $ 186,075,648 6.46% $ 78,705,622 6.48% Source: Denton and Tarrant County Central Appraisal District Page 242 of 280 Town of Trophy Club, Texas Property Tax Levies and Collections Last Ten Fiscal Years (Unaudited) Table 8 116 Collected within the Collections Total Tax Fiscal Year of the Levy in Total Collections to Date Fiscal Levy for Percentage Subsequent Percentage Year Fiscal Year Amount of Levy Years Amount of Levy 2015 $ 6,665,433 $ 6,642,558 99.66% $ 14,249 $ 6,656,807 99.87% 2016 7,477,394 7,456,542 99.72% 13,166 7,469,708 99.90% 2017 8,188,616 8,153,915 99.58% 10,781 8,164,696 99.71% 2018 8,627,946 8,614,737 99.85% 2,511 8,617,248 99.88% 2019 9,027,118 8,992,174 99.61% 35,723 9,027,897 100.01% 2020 9,504,473 9,400,652 98.91% 22,868 9,423,520 99.15% 2021 9,835,286 9,785,993 99.50% 26,729 9,812,722 99.77% 2022 10,263,591 10,247,041 99.84%(8,278) 10,238,763 99.76% 2023 11,139,198 11,121,834 99.84% 14,267 11,136,101 99.97% 2024 11,879,516 11,863,572 99.87% - 11,863,572 99.87% Source: Denton County Tax Assessor Collector Page 243 of 280 Town of Trophy Club, Texas Ratios of Outstanding Debt by Type Last Ten Fiscal Years (Unaudited) Table 9 117 Governmental Activities Business-Type Activities General Certificates Special Certificates Total Percentage Fiscal Obligation of Assessment of Primary of Personal Per Year Bonds Obligation Bonds Premium Leases Obligation Premium Government Income (1)Capita 2015 $ 8,344,695 $ 4,029,431 $ 26,481,000 $ - $ - $ 1,454,619 $ - $ 40,309,745 7.62% 3,348 2016 12,375,000 7,961,000 25,710,479 4,916,763 - 1,275,000 30,200 52,268,442 9.35% 4,200 2017 11,450,000 12,068,000 25,406,475 4,754,458 - 1,130,000 25,779 54,834,712 9.26% 4,234 2018 10,640,000 11,415,000 25,285,577 4,457,420 173,280 980,000 21,358 52,972,635 8.06% 3,828 2019 9,805,000 10,637,000 25,260,000 4,160,382 88,205 825,000 16,939 50,792,526 7.94% 4,106 2020 9,005,000 9,789,000 23,985,000 3,872,927 - 670,000 12,522 47,334,449 6.98% 3,802 2021 7,500,000 13,206,000 22,800,000 3,798,808 - - 8,504 47,313,312 7.04% 3,557 2022 6,595,000 12,298,000 21,245,000 3,482,143 99,617 345,000 4,486 44,069,246 6.10% 3,206 2023 5,890,000 18,040,000 19,776,000 3,423,086 85,745 175,000 468 47,390,299 5.60% 3,423 2024 5,165,000 16,800,000 18,227,000 3,093,541 49,294 - - 43,334,835 4.62% 2,941 (1) Personal Income and population found on Table 15 of the Statistical Section Page 244 of 280 Town of Trophy Club, Texas Table 10 Ratios of Net General Bonded Debt Outstanding Last Ten Fiscal Years (Unaudited) 118 Percentage of General Special Actual Taxable Fiscal Obligation Certificates of Assessment Value of Per Year Bonds Obligation Bonds Property (1)Capita (2) 2015 $ 8,344,695 $ 4,029,431 $ - 0.89% $ 1,028 2016 12,375,000 7,961,000 25,710,479 1.29% 1,634 2017 11,450,000 12,068,000 25,406,475 1.33% 1,890 2018 10,640,000 11,415,000 25,285,577 1.14% 1,594 2019 9,805,000 10,637,000 25,260,000 0.97% 1,653 2020 9,005,000 9,789,000 23,985,000 0.89% 1,509 2021 7,500,000 13,206,000 22,800,000 0.86% 1,557 2022 6,595,000 12,298,000 21,245,000 0.74% 1,375 2023 5,890,000 18,040,000 19,776,000 0.83% 1,729 2024 5,165,000 16,800,000 18,227,000 0.71% 1,607 (1) Property values are from Table 5 . (2) Populations are from Table 12. Page 245 of 280 Town of Trophy Club, Texas Direct and Overlapping Governmental Activities Debt As of September 30, 2024 (Unaudited) Table 11 119 Estimated Estimated Share of Debt Principal Percentage Overlapping Governmental Unit Outstanding Applicable Debt Debt repaid with property taxes: Denton County $ 673,670,000 1.62% $ 10,940,917 Northwest Independent School District 2,280,247,569 7.70276% 175,641,993 Tarrant County 345,130,000 0.01% 19,696 Tarrant County College District 569,915,000 0.07% 398,941 Tarrant County Hospital District 440,020,000 0.01% 25,111 Trophy Club MUD #1 4,290,000 0.56% 23,902 Subtotal, overlapping debt 4,313,272,569 187,050,560 Town of Trophy Club, direct debt 43,285,541 100.00% 43,285,541 Total direct and overlapping debt principal $ 4,356,558,110 $ 230,336,101 Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the Town of Trophy Club. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. Source: Most recent Texas Municipal Reports (TMR) published by the Municipal Advisory Council of Texas. Page 246 of 280 Town of Trophy Club, Texas Pledged Revenue Coverage Last Ten Fiscal Years (Unaudited) Table 12 120 Special Assessment Bonds Special Fiscal Assessment Annual Times Year Collections Requirement (1)Coverage 2020 $ 2,187,165 $ 2,180,573 1.00 2021 2,195,144 2,220,073 0.99 2022 2,263,090 2,249,922 1.01 2023 2,267,110 2,283,923 0.99 2024 2,275,465 2,319,852 0.98 Note: (1) Includes Principal and Interest Special assessment bonds pledged-revenue coverage presented starting with fiscal year 2020. Page 247 of 280 Town of Trophy Club, Texas Demographic and Economic Statistics Last Ten Fiscal Years (Unaudited) Table 13 121 Total Median Total Estimated Households Household Personal Unemployment Year Population (1)(1)Income (2)Income Rate (3) 2015 12,040 4,153 $ 127,391 $ 529,054,823 3.88% 2016 12,446 4,342 128,750 559,032,500 3.66 2017 12,950 4,435 133,457 591,881,795 3.38 2018 13,838 4,723 139,156 657,233,788 3.40 2019 12,369 4,490 142,483 639,748,670 3.10 2020 12,451 4,600 147,477 678,394,200 3.10 2021 13,301 4,555 147,477 671,757,735 6.60 2022 13,745 4,234 170,679 722,654,886 3.80 2023 13,843 4,625 183,125 846,953,125 5.60 2024 13,666 4,864 193,026 938,878,464 3.90 Sources: (1) Estimated population using residential water connections (2) United States Census Bureau (3) Federal Bank of St. Louis Economic Research; Denton and Tarrant Counties' data averaged 2018. Page 248 of 280 Town of Trophy Club, Texas Principal Employers Current Year and Ten Years Ago (Unaudited) 122 2024 Percentage of Total Town Employer Employees Employment Northwest Independent School District 415 5.92% Baylor Medical Center at Trophy Club 230 2.92% Trophy Club Country Club 205 3.28% Tom Thumb 202 2.88% Town of Trophy Club* 108 1.54% HG Sply Co. 100 1.43% Hutchins 85 1.21% Fellowship United Methodist Church 39 0.56% Premier Academy - Trophy Club 35 0.50% The Church at Trophy Lakes 30 0.43% Total 1,449 20.67% (*) Includes Full Time, Part Time, and Seasonal Page 249 of 280 Table 14 123 2015 Percentage of Total Town Employer Employees Employment Northwest Independent School District 472 31.47% Baylor Medical Center at Trophy Club 215 14.33% Trophy Club Country Club 220 14.67% Town of Trophy Club 198 13.20% Tom Thumb 75 5.00% Bread Winners Cafe 72 4.80% Cristina's Mexican Restaurant 55 3.67% Fellowship United Methodist Church 43 2.87% Premier Academy - Trophy Club 39 2.60% Trophy Lake Academy 30 2.00% Total 1,419 94.61% Page 250 of 280 Town of Trophy Club, Texas Full-time Equivalent Town Government Employees By Function/Program Last Ten Fiscal Years (Unaudited) Table 15 124 Function 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General Government and Administration 13 14 13 14 14 13 12 12 14 12 Public Safety 32 33 33 34 41 41 38 42 43 46 Streets 4 4 4 2 3 3 3 3 3 3 Parks and Recreation 17 17 16 17 14 14 16 14 17 19 Community Development 6 6 6 6 5 4 4 3 4 4 Total 72 74 72 73 77 75 73 74 81 84 Source: Departmental records Page 251 of 280 Town of Trophy Club, Texas Operating Indicators by Function/Program Last Ten Fiscal Years (Unaudited) Table 16 125 Function 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Public Safety Police Number of stations 1 1 1 2 2 1 1 1 1 1 Number of police personnel 25 25 26 26 24 25 23 26 26 27 Number of arrests 125 145 148 130 275 157 158 47 141 144 Number of traffic stops 2,912 3,635 2,922 4,262 5,397 3,106 3,206 2,987 5,312 7,033 Fire Number of stations 1 1 1 1 1 1 1 1 1 1 Number of fire personnel 15 16 17 18 17 17 18 19 19 18 Number of calls answered 868 898 868 858 871 965 981 1,061 944 953 Developmental Miles of streets 43 43 43 43 52 52 52 52 52 52 Parks/Recreational Changes Parks 6 6 6 6 6 6 6 6 6 6 Park acreage 1,039 1,039 1,039 1,039 1,039 1,039 1,039 1,039 1,039 929 Source: Departmental records Page 252 of 280 Page 253 of 280 Forvis Mazars Report to the Town Council and Management Town of Trophy Club, Texas Results of the 2024 Financial Statement Audit, Including Required Communications September 30, 2024 Required Communications Regarding Our Audit Strategy & Approach (AU-C 260) Overview & Responsibilities Matter Discussion Scope of Our Audit This report covers audit results related to your financial statements and supplementary information: As of and for the year ended September 30, 2024. Conducted in accordance with our contract dated August 19, 2024. Our Responsibilities Forvis Mazars is responsible for forming and expressing opinions about whether the financial statements that have been prepared by management, with the oversight of those charged with governance, are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Audit Scope & Inherent Limitations to Reasonable Assurance An audit performed in accordance with auditing standards generally accepted in the United States of America (GAAS) is designed to obtain reasonable, rather than absolute, assurance about the financial statements. The scope of our audit tests was established in relation to the financial statements taken as a whole and did not include a detailed audit of all transactions. Extent of Our Communication In addition to areas of interest and noting prior communications made during other phases of the engagement, this report includes communications required in accordance with GAAS that are relevant to the responsibilities of those charged with governance in overseeing the financial reporting process, including audit approach, results, and internal control. The standards do not require the auditor to design procedures for the purpose of identifying other matters to be communicated with those charged with governance. Independence The engagement team, others in our firm, as appropriate, and our firm, have complied with all relevant ethical requirements regarding independence. Your Responsibilities Our audit does not relieve management or those charged with governance of your responsibilities. Your responsibilities and ours are further referenced in our contract. Town of Trophy Club, Texas 1 February 18, 2025 Page 254 of 280 Matter Discussion Distribution Restriction This communication is intended solely for the information and use of the following and is not intended to be, and should not be, used by anyone other than these specified parties: Town Council and Management Others within the Town Other Information Accompanying the Audited Financial Statements The audited financial statements are presented along with management’s annual comprehensive financial report (ACFR). Management, or those charged with governance, is responsible for preparing the ACFR. We were not engaged to audit the introductory and statistical information contained in the annual comprehensive financial report (ACFR), and as a result, our opinions do not provide assurance as to the completeness and accuracy of the information contained therein. As part of our procedures, we read the entire report to determine if financial information discussed in sections outside the financial statements materially contradicts the audited financial statements. If we identify any such matters, we bring them to management’s attention and review subsequent revisions. Auditor Objectives Related to Other Information Our objectives related to the other information accompanying the audited financial statements were to: Consider whether a material inconsistency exists between the other information and the financial statements Remain alert for indications that: A material inconsistency exists between the other information and the auditor’s knowledge obtained in the audit, or A material misstatement of fact exists or the other information is otherwise misleading Respond appropriately when we identify that such material inconsistencies appear to exist or when we otherwise become aware that other information appears to be materially misstated. Potential responsive actions would include requesting management to correct the identified inconsistency Include the appropriate communication in our auditor’s report, disclosing the procedures performed on the Other Information, as well as the results obtained No material inconsistencies were noted in our review of the other information. Qualitative Aspects of Significant Accounting Policies & Practices Significant Accounting Policies Significant accounting policies are described in Note 1 of the audited financial statements. Unusual Policies or Methods No matters are reportable Town of Trophy Club, Texas 2 February 18, 2025 Page 255 of 280 Alternative Accounting Treatments No matters are reportable Management Judgments & Accounting Estimates Accounting estimates are an integral part of financial statement preparation by management, based on its judgments. Significant areas of such estimates for which we are prepared to discuss management’s estimation process and our procedures for testing the reasonableness of those estimates include: Allowance for uncollectible accounts receivable Net pension liability and related deferred inflows and outflows of resources Total other postemployment benefit liability (OPEB) and related deferred inflows and outflows of resources Key estimates related to leases - lease discount rate, lease term, and lease payments Financial Statement Disclosures The following areas involve particularly sensitive financial statement disclosures for which we are prepared to discuss the issues involved and related judgments made in formulating those disclosures: Revenue recognition Net pension liability Total OPEB liability Tax abatement disclosures Leases Our Judgment About the Quality of the Town’s Accounting Principles No matters are reportable Adjustments Identified by Audit During the course of any audit, an auditor may propose adjustments to financial statement amounts. Management evaluates our proposals and records those adjustments that, in its judgment, are required to prevent the financial statements from being materially misstated. A misstatement is a difference between the amount, classification, presentation, or disclosure of a reported financial statement item and that which is required for the item to be presented fairly in accordance with the applicable financial reporting framework. Proposed & Recorded Adjustments Auditor-proposed and management-recorded entries include the following: Adjustments to record various due to/due from balances Reclassification between wages payable and cash at year-end Entries related to GASB 68, 75, and 87 - outsourced to Forvis Mazars Entries to convert from modified accrual to full accrual basis of accounting - outsourced to Forvis Mazars Various reclassification entries for reporting purposes - outsourced to Forvis Mazars Town of Trophy Club, Texas 3 February 18, 2025 Page 256 of 280 Uncorrected Misstatements Current-Period Uncorrected Misstatements No current-period uncorrected misstatements Other Required Communication Other Material Communication Listed below is a material communication between management and us related to the audit: Management representation letter (see Attachments) Town of Trophy Club, Texas 4 February 18, 2025 Page 257 of 280 Required Communications Regarding Internal Control (AU-C 265) Consideration of Internal Control Over Financial Reporting In planning and performing our audit of the financial statements of the Town as of and for the year ended September 30, 2024, in accordance with GAAS, we considered the Entity’s internal control over financial reporting (internal control). This consideration served as a basis for designing audit procedures that are appropriate in the circumstance for the purpose of expressing our opinions on the financial statements. However, this consideration was not for the purpose of expressing an opinion on the effectiveness of the Entity’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Entity’s internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraphs and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit, we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Categorizing Deficiencies by Severity Deficiency A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. Significant Deficiency A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Material Weakness A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that material misstatements of the Entity’s financial statements will not be prevented or detected and corrected on a timely basis. Identified Deficiencies We identified certain deficiencies in internal control that we consider to be deficiencies. Deficiencies Segregation of Duties: Management is responsible for establishing and maintaining effective internal controls to safeguard the Town's assets. During internal control analysis, we noted instances where individuals had access, recording and monitoring capabilities within the cash outflow (including payroll) and cash inflow transaction cycles. Although this concentration of responsibilities may be efficient, it could lead to possible errors or irregularities. Management should evaluate the cost versus the benefits of further segregating these duties by hiring additional personnel or shifting certain accounting duties to other current employees to assist in implementing additional monitoring or other compensating controls. We observed matters that we consider to be deficiencies that we communicated to management orally. Town of Trophy Club, Texas 5 February 18, 2025 Page 258 of 280 Other Matters We also observed other matters and offer these comments and suggestions with respect to matters which came to our attention during the course of the audit of the financial statements. We can discuss these matters further at your convenience and may provide implementation assistance for changes or improvements. GASB Statement No. 101, Compensated Absences (GASB 101). This statement updates the recognition and measurement guidance for compensated absences under a unified model. It defines compensated absences and requires that liabilities be recognized in financial statements prepared using the economic resources measurement focus for leave that has not been used and leave that has been used but not yet paid or settled. A liability for compensated absences should be accounted for and reported on a basis consistent with governmental fund accounting principles for financial statements prepared using the current financial resources measurement focus. This statement amends the existing requirement to disclose the gross increases and decreases in a liability for compensated absences to allow governments to disclose only the net change in the liability (as long as they identify it as a net change). In addition, governments are no longer required to disclose which governmental funds typically have been used to liquidate the liability for compensated absences. GASB 101 is effective for the Town’s fiscal year ended September 30, 2025. GASB Statement No. 102, Certain Risk Disclosures (GASB 102). Governmental Accounting Standards Board (GASB) Statement 102, Certain Risk Disclosures, requires governments to disclose information about certain concentrations or constraints that could affect services provided or the ability to meet obligations as they come due. Governments should start planning for compliance by identifying potential constraints and concentrations, assessing risks related to these factors, developing processes to evaluate and monitor disclosure criteria, and preparing to gather and present the required information in financial statement notes. GASB 102 is effective for the Town’s fiscal year ended September 30, 2025. GASB Statement No. 103, Financial Reporting Model Improvements (GASB 103). Governmental Accounting Standards Board (GASB) Statement No. 103, Financial Reporting Model Improvements (GASB 103), improves the financial reporting model by standardizing the presentation for various matters within governmental financial statements. The purpose is to eliminate diversity in practice and improve comparability. Impacted areas include management’s discussion and analysis, unusual or infrequent items, the definitions and presentation of operating and nonoperating revenues and expenses in enterprise funds, presentation of major component units, presentation of budgetary comparison information, and financial trends information within the statistical section of separately issued financial reports. GASB 103 is effective for the Town’s fiscal year ended September 30, 2026, and all reporting periods thereafter. Earlier application is encouraged. Changes are required to be made retroactively to the earliest period presented. GASB Statement No. 104, Disclosure of Certain Capital Assets (GASB 104). Governmental Accounting Standards Board (GASB) Statement No. 104, Disclosure of Certain Capital Assets, (GASB 104), requires certain types of capital assets to be disclosed separately in the capital assets note disclosures. GASB 104 requires lease assets recognized in accordance with Statement No. 87, Leases, intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, subscription assets recognized in accordance with Statement No. 96, Subscription-Based Information Technology Arrangements, and intangible assets other than those three types to be disclosed separately by major class. In addition, GASB 104 requires additional disclosures for capital assets held for sale. GASB 104 is effective for the Town’s fiscal year ended September 30, 2026, and all reporting periods thereafter. Earlier application is encouraged. The requirements of this Statement should be applied retroactively to all periods presented in the basic financial statements, if practicable. Town of Trophy Club, Texas 6 February 18, 2025 Page 259 of 280 OMB Issues Updated Uniform Guidance. In April 2024, the Office of Management and Budget (OMB) issued revisions to the OMB Guidance for Grants and Agreements, which is now called the OMB Guidance for Federal Financial Assistance. The revisions impact several parts of the guidance and are intended to improve federal financial assistance management, transparency, and oversight through more accessible and easily understandable guidance. Several key thresholds have been revised for the first time in over a decade, including raising the threshold for a single audit from expenditures of $750,000 to $1,000,000. The type A program threshold for entities expending awards from $1 million to $34 million is also raised from $750,000 to $1,000,000. In addition, the revision updates the cost accounting standards and disclosure statement to remove the requirement to submit a DS-2 disclosure statement in support of an indirect rate. The effective date for the final guidance, including the increase in the single audit threshold, is October 1, 2024. Town of Trophy Club, Texas 7 February 18, 2025 Page 260 of 280 Attachment Management Representation Letter (Attachment A) As a material communication with management, included herein is a copy of the representation letter provided by management at the conclusion of our engagement. Town of Trophy Club, Texas 8 February 18, 2025 Page 261 of 280 Attachment A Management Representation Letter Town of Trophy Club, Texas February 18, 2025 Page 262 of 280 Page 263 of 280 Page 264 of 280 Page 265 of 280 Page 266 of 280 Page 267 of 280 Page 268 of 280 Page 269 of 280 Page 270 of 280 Page 271 of 280 TOWN COUNCIL COMMUNICATION MEETING DATE: February 24, 2025 FROM: Chase Ellis, Director of Parks & Recreation AGENDA ITEM: Consider proposed options for the Community Pool Renovation Design and Construction Management project. (Chase Ellis, Director of Parks & Recreation) BACKGROUND/SUMMARY: On November 8, 2022, the Town Council approved a renovation project for the community pool facility, structured into a two-phase build-out. The approved motion stated, "to approve the agreement with Halff & Associates for the Community Pool Capital Improvement Project not to exceed four (4) million dollars." The motion passed unanimously. Phase 1 Completion Phase 1, completed following the 2023 swim season, involved substantial upgrades to the facility. These improvements included: • Replacement of filtration systems and pump room equipment. • Restroom renovations. • Enhancements to the concession and office areas. • Painting of splash pad amenities. Reevaluation of Project Approach After Phase 1, the Parks & Recreation Director and Town Manager conducted a review of the current contract and the completed work. It was determined that terminating the agreement with Halff & Associates and initiating a new request for qualifications (RFQ) process would better serve the Town. This decision aimed to prioritize transparency, ensure comprehensive project design, and incorporate extensive community input for the additional amenities planned in Phase 2. Transition to Parkhill and Community Engagement Following the RFQ process, Parkhill was selected and presented to the Council to lead the engagement and preliminary design for Phase 2. In August, Parkhill conducted a series of public engagement events at the community pool to gather input from residents regarding desired future amenities. Additionally, an online survey was distributed for those unable to attend in person, generating over 100 community responses. Progress and Preliminary Designs Using the feedback collected from public engagement and the survey, Parkhill collaborated Page 272 of 280 with Town staff to develop three schematic design options with preliminary cost estimates. These designs are under review and will guide the planning and construction of additional amenities for the community pool, ensuring alignment with community preferences and budget considerations. The options were presented to the Parks & Recreation Board at their December meeting, and the Board requested that one of the presented options be refined based on additional board feedback as well as the desire for that option to be presented within the project budget amount. The updated options were presented to the Parks & Recreation Board at their February 17, 2025 Board Meeting, and the Board voted to provide a recommendation to present to the Town Council. Next Steps The next steps include finalizing the design selection, refining cost estimates, and presenting a comprehensive proposal to the Town Council for approval before Phase 2 construction begins. The focus remains on delivering a modernized and community-driven pool facility that meets the Town’s recreational needs. BOARD REVIEW/CITIZEN FEEDBACK: At their February 17, 2025 Parks & Recreation Board Meeting, the Board recommended (6-1) Option 3 with the potential inclusion for a double slide. Parkhill and staff will are working to create a two-slide option that can be supported by the current budget. FISCAL IMPACT: Phase 2 of the Community Pool Renovation Project has a budget of $2.4 million, which is appropriated in the FY 2025 Budget in the Capital Improvement Projects Fund. LEGAL REVIEW: N/A ATTACHMENTS: 1. Community Pool Improvement Concepts | Site Plans 2. Community Pool Improvement Concepts | Probable Cost Summaries ACTIONS/OPTIONS: This agenda item will include a presentation of the Parks & Recreation Board recommendation. Staff recommends that the Town Council consider the recommendation and provide direction to staff regarding improvements to the Community Pool facility. Page 273 of 280 01.20.2025 Trophy Club, Texas Conceptual Plan TROPHY CLUB CONCEPT PLAN OPTIONS Page 274 of 280 01.20.2025 Trophy Club, Texas Conceptual Plan Trophy Club Community Pool Conceptual Plan Option ‘A’ KEY NOTES 01 - EX. POOL HOUSE 02 - EX. PUMP HOUSE 03 - EX. PUMP HOUSE W/ NEW ROOF 04 - EX. FABRIC SHADE STRUCTURE 05 - EX. COMPETITION POOL 06 - 20’ X 20’ GROUP SHADE AREA 07 - 12’ X 12’ CABANA 08 - LOUNGE AREA / SUNDECK 09 - BODY SLIDE - SINGLE 10 - PLAY STRUCTURE 11 - BENCH SEATING 12 - FABRIC SHADE STRUCTURE 13 - ZERO-DEPTH POOL ENTRY 14 - OPEN LAWN 15 - RAISED PLANTER 16 - XERIC PLANTER BEDS 01 02 03 04 05 06 07 08 0809 10 11 12 13 14 16 15 15 16 0 20’40’60’ Page 275 of 280 01.20.2025 Trophy Club, Texas Conceptual Plan Trophy Club Community Pool Conceptual Plan Option ‘B’ KEY NOTES 01 - EX. POOL HOUSE 02 - EX. PUMP HOUSE 03 - EX. PUMP HOUSE W/ NEW ROOF 04 - EX. FABRIC SHADE STRUCTURE 05 - EX. COMPETITION POOL 06 - EX. UMBRELLA SHADE STRUCTURE 07 - 12’ X 12’ CABANA 08 - LOUNGE AREA / SUNDECK 09 - BODY SLIDE - DOUBLE 10 - PLAY STRUCTURE 11 - BENCH SEATING 12 - TABLE & CHAIRS W/ UMBRELLA 13 - FABRIC SHADE STRUCTURE 14 - ZERO-DEPTH POOL ENTRY 15 - OPEN LAWN 16 - XERIC PLANTER BEDS 01 02 03 04 05 06 07 07 08 09 10 1112 13 14 16 16 15 0 20’40’60’ Page 276 of 280 01.20.2025 Trophy Club, Texas Conceptual Plan Trophy Club Community Pool Conceptual Plan Option ‘C’ KEY NOTES 01 - EX. POOL HOUSE 02 - EX. PUMP HOUSE 03 - EX. PUMP HOUSE W/ NEW ROOF 04 - EX. COMPETITION POOL 05 - 25’ X 25’ GROUP SHADE AREAS 06 - 20’ X 20’ GROUP SHADE AREAS 07 - 12’ X 12’ CABANA 08 - LOUNGE AREA / SUNDECK 09 - BODY SLIDE - SINGLE 10 - PLAY STRUCTURE 11 - BENCH SEATING 12 - TABLE & CHAIRS W/ UMBRELLA 13 - FABRIC SHADE STRUCTURE 14 - ZERO DEPTH POOL ENTRY 15 - OPEN LAWN 16 - XERIC PLANTER BEDS 01 02 03 1504 05 06 06 16 16 16 07 07 08 08 09 10 11 12 13 05 14 0 20’40’60’ Page 277 of 280 OPINION OF PROBABLE CONSTRUCTION COST - Concept A Trophy Club Community Pool Renovations Town of Trophy Club January 2025 No.Item Quantity Unit Unit Price Amount A.General Items Clearing /Grubbing/Demo 1.0 LS 50,000.00$ 50,000.00$ Erosion Control 1 LS 15,000.00$ 15,000.00$ Tree Protection - LS -$ -$ Subtotal 65,000.00$ B.Earthwork Earthwork 1 LS 50,000.00$ 50,000.00$ Strip, Stockpile & Replace Topsoil - CY 25.00$ -$ Unclassified Cut - CY 12.50$ -$ Unclassified Fill - CY 12.50$ -$ Import - CY 45.00$ -$ Subtotal 50,000.00$ C.Site Paving 5" Thk. Concrete Pedestrian Paving on Compacted Subgrade 4,500 SF 12.50$ 56,250.00$ Decomposed Granite Surfacing SF 5.00$ -$ Concrete Mow Edge 25 LF 25.00$ 625.00$ Accessible Ramps EA 1,000.00$ -$ Subtotal 56,875.00$ D.Pool Renovations Pool Expansion 603 SF 900.00$ 542,700.00$ Slide 1 LS 312,000.00$ 312,000.00$ Slide Foundation 1 LS 46,800.00$ 46,800.00$ Slide Suction Outlet 2 EA 20,000.00$ 40,000.00$ Slide Buried Piping 230 LF 250.00$ 57,500.00$ Slide Exposed Piping 60 LF 65.00$ 3,900.00$ Play Structure 1 LS 204,000.00$ 204,000.00$ Reuse Existing Feature Pump - --$ -$ Refinish Pool 2,130 SF 40.00$ 85,200.00$ Subtotal 1,292,100.00$ E.General Site Amenities 12'x12' Fabric Shade Structure 10 EA 15,000.00$ 150,000.00$ 20'x20' Fabric Shade Structure 3 EA 40,000.00$ 120,000.00$ Landscape Planter Wall 400 SFF 50.00$ 20,000.00$ Poolside Lounge Chair 17 EA 5,000.00$ 85,000.00$ Subtotal 375,000.00$ F.General Landscape Shade Trees (4-inch caliper)6 EA 1,000.00$ 6,000.00$ Ornamental Trees 10 EA 650.00$ 6,500.00$ Planter Bed 6,745 SF 15.00$ 101,175.00$ Turfgrass - Solid Sod 4,000 SF 0.75$ 3,000.00$ Irrigation System Allowance 14,600 SF 2.00$ 29,200.00$ Subtotal 145,875.00$ Subtotal 1,984,850.00$ 9% Inflation (6 mo)178,637.00$ Contingency 396,513.00$ Total 2,560,000.00$ No.Item Quantity Unit Unit Price Amount AA.Pumphouse Enclosure Cover Existing North Pump House 1 LS 200,000.00$ 200,000.00$ Enclose Tank at Existing North Pump House 1 LS 100,000.00$ 100,000.00$ Subtotal 300,000.00$ 9% Inflation (6 mo)27,000.00$ Contingency 58,000.00$ Total 385,000.00$ 42997.24 1 Page 278 of 280 OPINION OF PROBABLE CONSTRUCTION COST - Concept B Trophy Club Community Pool Renovations Town of Trophy Club January 2025 No.Item Quantity Unit Unit Price Amount A.General Items Clearing /Grubbing/Demo 1.0 LS 50,000.00$ 50,000.00$ Erosion Control 1 LS 15,000.00$ 15,000.00$ Tree Protection - LS -$ -$ Subtotal 65,000.00$ B.Earthwork Earthwork 1 LS 50,000.00$ 50,000.00$ Strip, Stockpile & Replace Topsoil - CY 25.00$ -$ Unclassified Cut - CY 12.50$ -$ Unclassified Fill - CY 12.50$ -$ Import - CY 45.00$ -$ Subtotal 50,000.00$ C.Site Paving 5" Thk. Concrete Pedestrian Paving on Compacted Subgrade 5,800 SF 12.50$ 72,500.00$ Decomposed Granite Surfacing SF 5.00$ -$ Concrete Mow Edge 20 LF 25.00$ 500.00$ Accessible Ramps EA 1,000.00$ -$ Subtotal 73,000.00$ D.Pool Renovations Pool Expansion 287 SF 900.00$ 258,300.00$ Slide 1 LS 524,500.00$ 524,500.00$ Slide Foundation 1 LS 104,900.00$ 104,900.00$ Slide Suction Outlet 1 EA 20,000.00$ 20,000.00$ Slide Buried Piping 60 LF 250.00$ 15,000.00$ Slide Exposed Piping 30 LF 65.00$ 1,950.00$ Timing System 1 LS 90,000.00$ 90,000.00$ Play Structure 1 LS 136,000.00$ 136,000.00$ Reuse Existing Feature Pump - EA -$ -$ Refurbish Feature Pump #2 1 EA 3,000.00$ 3,000.00$ Refinish Pool 1,814 SF 40.00$ 72,560.00$ Subtotal 1,226,210.00$ E.General Site Amenities 12'x12' Shade Structure 6 EA 15,000.00$ 90,000.00$ 20' Diameter Shade Structure Relocation 3 EA 7,500.00$ 22,500.00$ Landscape Planter Wall - SFF 50.00$ -$ Picnic Tables with Shade 8 EA 10,000.00$ 80,000.00$ Poolside Lounge Chair 16 EA 5,000.00$ 80,000.00$ Subtotal 272,500.00$ F.General Landscape Shade Trees (4-inch caliper)5 EA 1,000.00$ 5,000.00$ Ornamental Trees 10 EA 650.00$ 6,500.00$ Planter Bed 7,860 SF 15.00$ 117,900.00$ Turfgrass - Solid Sod 8,200 SF 0.75$ 6,150.00$ Irrigation System Allowance 16,060 SF 2.00$ 32,120.00$ Subtotal 167,670.00$ Subtotal 1,854,380.00$ 9% Inflation (6 mo)166,895.00$ Contingency 368,725.00$ Total 2,390,000.00$ No.Item Quantity Unit Unit Price Amount AA.Pumphouse Enclosure Cover Existing North Pump House 1 LS 200,000.00$ 200,000.00$ Enclose Tank at Existing North Pump House 1 LS 100,000.00$ 100,000.00$ Subtotal 300,000.00$ 9% Inflation (6 mo)27,000.00$ Contingency 58,000.00$ Total 385,000.00$ 42997.24 1 Page 279 of 280 OPINION OF PROBABLE CONSTRUCTION COST - Concept C Trophy Club Community Pool Renovations Town of Trophy Club January 2025 No.Item Quantity Unit Unit Price Amount A.General Items Clearing /Grubbing/Demo 1.0 LS 50,000.00$ 50,000.00$ Erosion Control 1 LS 15,000.00$ 15,000.00$ Tree Protection - LS -$ -$ Subtotal 65,000.00$ B.Earthwork Earthwork 1 LS 50,000.00$ 50,000.00$ Strip, Stockpile & Replace Topsoil - CY 25.00$ -$ Unclassified Cut - CY 12.50$ -$ Unclassified Fill - CY 12.50$ -$ Import - CY 45.00$ -$ Subtotal 50,000.00$ C.Site Paving 5" Thk. Concrete Pedestrian Paving on Compacted Subgrade 5,770 SF 12.50$ 72,125.00$ Decomposed Granite Surfacing - SF 5.00$ -$ Concrete Mow Edge 7 LF 25.00$ 175.00$ Accessible Ramps - EA 1,000.00$ -$ Subtotal 72,300.00$ D.Pool Renovations Pool Expansion 287 SF 900.00$ 258,300.00$ Slide 1 EA 420,000.00$ 420,000.00$ Slide Foundation 1 EA 84,000.00$ 84,000.00$ Slide Pump 1 EA 20,000.00$ 20,000.00$ Slide Suction Outlet 1 EA 20,000.00$ 20,000.00$ Slide Buried Piping 60 LF 250.00$ 15,000.00$ Slide Exposed Piping 30 LF 65.00$ 1,950.00$ Play Struture 1 EA 136,000.00$ 136,000.00$ Water Table 1 EA 33,000.00$ 33,000.00$ Spray Features 2 EA 18,700.00$ 37,400.00$ Reuse Existing Feature Pump - EA -$ -$ Refurbish Feature Pump #2 1 EA 3,000.00$ 3,000.00$ Refinish Pool 1,814 SF 40.00$ 72,560.00$ Subtotal 1,101,210.00$ E.General Site Amenities 12'x12' Shade Structure 8 EA 15,000.00$ 120,000.00$ 25'x25' Shade Structure 2 EA 50,000.00$ 100,000.00$ 20' Diameter Shade Structure Relocation 3 EA 7,500.00$ 22,500.00$ Landscape Planter Wall 280 SFF 50.00$ 14,000.00$ Picnic Tables with Shade 6 EA 10,000.00$ 60,000.00$ Poolside Lounge Chair 19 EA 5,000.00$ 95,000.00$ Subtotal 411,500.00$ F.General Landscape Shade Trees (4-inch caliper)8 EA 1,000.00$ 8,000.00$ Ornamental Trees 9 EA 650.00$ 5,850.00$ Planter Bed 11,260 SF 15.00$ 168,900.00$ Turfgrass - Solid Sod 2,840 SF 0.75$ 2,130.00$ Irrigation System Allowance 14,100 SF 2.00$ 28,200.00$ Subtotal 213,080.00$ Subtotal 1,913,090.00$ 9% Inflation (6 mo)172,179.00$ Contingency 384,731.00$ Total 2,470,000.00$ No.Item Quantity Unit Unit Price Amount AA.Pumphouse Enclosure Cover Existing North Pump House 1 LS 200,000.00$ 200,000.00$ Enclose Tank at Existing North Pump House 1 LS 100,000.00$ 100,000.00$ Subtotal 300,000.00$ 9% Inflation (6 mo)27,000.00$ Contingency 58,000.00$ Total 385,000.00$ 42997.24 1 Page 280 of 280