Minutes TC 08/24/2009 - Special SessionSPECAL TOWN COUNCIL MEETING FOR THE
TOWN OF TROPHY CLUB
LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS
Monday, August 24, 2009 at 5:00 P.M.
STATE OF TEXAS §
COUNTY OF DENTON §
The Town Council of the Town of Trophy Club, Texas, met in a Special Session on Monday, August 24,
2009. The meeting was held within the boundaries of the Town and was open to the public.
TOWN COUNCIL MEMBERS PRESENT:
Connie White
Glenn Strother
Philip Sterling
Susan Edstrom
Kath leen Wilson
Bill Rose
Mayor
Mayor Pro Tem arrived at 5:40 P.M.
Council Member
Council Member
Council Member
Council Member
STAFF AND GUEST(S) PRESENT:
Brandon Emmons Town Manager
Stephen Seidel Assistant Town Manager
Lisa Hennek Town Secretary
Patricia Adams Town Attorney
Kathy DuBose Finance Director
Scott Kniffen Police Chief
Danny Thomas Fire Chief
Mayor White called the Council to order and announced a quorum at 5:05 P.M.
Mayor White announced that Mayor Pro Tem Strother would be late.
1. 09-331-T Budget Discussion (5:00 -7:00 P.M.)
Town Manager Emmons and Finance Director Kathy DuBose explained the operational changes over the
past ten years.
Town Manager Emmons stated that the proposed document met Council's three top priorities; a balanced
budget, the same level of service and no tax increase. '
Council considered the following changes and contingencies to the proposed s document was created:
MUD funding for the position of Record's Manager Officer (RMO) position (The MUDs are considering
funding the Receptionist/Administrative Assistant at 100% to offset the 50% for the RMO)
Employee Insurance Rates -expected at a 7% increase (Final numbers will be available after Open
Enrollment which will be conducted on Wednesday, August 26, 2009)
MUD Water Rates for medians and parks might impact the final numbers as well
In reference to the above, Staff will provide concrete numbers at Council's September 14, 2009 meeting.
The Council discussed the budget by individual departments.
August 24, 2009 Town Council Minutes 1
Council took a brief recess and reconvened at 7:10P.M.
The Invocation was offered by Police Chief Kniffen.
The Pledges were led by Fire Chief Thomas.
Citizen Presentations:
This is an opportunity for citizens to address the Council on any matter whether or not it is posted on the
agenda. The Council is not permitted to take action on or discuss any presentations made to the Council
at this time concerning an item not listed on the agenda. The Council will hear presentations on specific
agenda items prior to the Council addressing those items. You may speak up to three (3) minutes or the
time limit determined by the Mayor or presiding officer. To speak during this item you must complete the
Speaker's form that includes the topic(s) of your statement. Topics of presentation should be limited to
matters over which the Council has authority.
Bob Radder, 1 Lee Court -Requested the Council adopt a slight tax increase setting the cap at $0.47.
CONSENT AGENDA
All matters listed as Consent Agenda are considered to be routine by the Town Council and will be
enacted by one motion. There wiff not be a separate discussion of these items. If discussion is desired,
that item wiff be removed from the consent agenda and wiff be considered separately.
2. 09-288-T Consider and take appropriate action regarding an Ordinance amending Chapter 13-
Zoning, Article V-Supplementary District Regulations, Section S.03-Accessory Structures and
Uses of the Code of Ordinances, including without limitation, the adoption of new regulations
affecting accessory structures (ADM-09-003)
The Public Hearing for Item 2 was held on August 17, 2009 and one correction was noted. Staff has
revised the Ordinance and this Item is ready for approval.
Motion made by Edstrom, seconded by Rose to approve an Ordinance amending Chapter 13-Zoning,
Article V-Supplementary District Regulations, Section 5.03-Accessory Structures and Uses of the Code of
Ordinances, including without limitation, the adoption of new regulations affecting accessory structures
(ADM-09-003)
Motion passed unanimously without further discussion.
PUBLIC HEARING
Public Hearing Opened at 7:14 P.M.
3. 09-332-T Town Council to conduct 1st Public Hearing regarding the budget and proposed tax
rate increase for fiscal year October 1, 2009 to September 30, 2010 and Mayor to announce the
date, time and place of the vote on the tax rate.
Mayor White read the following into the record:
On September 28,2009, the Town Council will hold a Public Meeting to adopt a 2009 tax rate that will
exceed the lower of the rollback rate or the effective tax rate. As required by law, a second Public
Hearing on a tax increase will be held on September 14, 2009 at 7:00 P.M.
August 24, 2009 Town Council Minutes 2
No citizens addressed the Council.
Public Hearing Closed at 7:15 P.M.
REGULAR SESSION
4. 09-313-T Consider and take appropriate action regarding an Ordinance reordering numbers and
letters in the Town Charter as a result of Charter amendments adopted at the May, 2009 election.
This item was discussed at Council's August 3, 2009 meeting. At that meeting, two examples were
provided for Council's review; Example 1 was a clean copy without red line and Example 2 was a redline
document using strike through and bold to show changes. Council requested that another example be
provided clarifying the Editor's notes.
At Council's August 17, 2009 meeting all three examples were presented to Council for consideration.
Consensus from Council was to bring back the final Ordinance (Example 3) to the August 24, 2009
Special Session.
Council member Rose corrected the following in an email dated Friday, August 21, 2009:
Reviewing example three for consistency: in all uses "Editor's Note" and "See Editor's Note X below"
should either be underlined or not underlined. "Editor's Note2:" needs a space between Note and 2.
Council would like the Editor's Note underlined.
Motion made by Rose, seconded by Wilson to approve an Ordinance reordering numbers and letters in
the Town Charter as a result of Charter amendments adopted at the May, 2009 election using Example 3,
using "Editor's Note" and "See Editor's Note".
Motion passed unanimously without further discussion.
5. 09-320-T Receive infonnation from staff regarding the potential issuance of park bonds in the
event of a successful November 2009 election, the costs of issuance, impact on operations and
maintenance, impact on operations and maintenance tax rate, and interaction with PIO projects;
provide direction to staff regarding same.
Mayor White read the following as was provided in the Council packet:
At the August 17, 2009 meeting, the Town Council unanimously approved an ordinance calling a capital
projects bond election for November 3, 2009. The attached presentation from the meeting incorporated
several items including proposed projects and estimated construction costs, as well as an estimate of
associated operations and maintenance costs of bringing the projects on-line when completed.
Several steps are necessary between the time of a successful bond election and actually "breaking
ground" on a project. One of the initial steps is that of preparing for a bond issuance (selling of bonds).
In order for a municipality to sell bonds, we must go through a bond rating process, extensive review by
bond counsel of required legal documents, secure approval from the Attorney General of the State of
Texas, and secure insurance (if desired). Part of this process includes the preparation of an "Official
Statement" by the Town's financial advisor. This document provides historical, demographic, and
financial information. Much of the financial information comes from the audited annual financial report for
the most current fiscal year. The audit for the 2008-2009 fiscal year should be completed in February,
2010, which should allow us to go through the bond rating process in March, 2010. Once our legal
documents are prepared and reviewed, we receive our bond rating, and the Attorney General's approval,
we can move forward with the issuance of bonds.
August 24, 2009 Town Council Minutes 3
Key to the process is identifying whether projects will be bid as whole or phased, and if the approved
bonds will be sold as one issue or over two or more years. Typically, project(s) that are intended to be
completed within 18 to 24 months are included in the original bond issue. How we determine to move
forward with the projects and bond issue(s) will have an impact on our bond issuance costs. Those costs
include bond counsel legal review, financial advisory services, Attorney General's fee, bond rating fees,
and the first year's paying agent fees. Until recently, issuers were not able to pay issuance costs related
to a bond offering from proceeds unless the bond election proposition included such language and voters
approved. A recent Attorney General's opinion now allows for an issuer to sell bonds at a premium and
pay issuance costs from the premium. To insure that bonds are sold at the necessary premium, the
Financial Advisor includes the needed amount in the underwriting requirements. The underwriter then
prices incorporating the added premium. This process causes the bond interest percentage to adjust
upward. In essence, rather than issuing additional debt, the issuance costs are paid through a higher
interest rate.
Another key issue we will face is the operations and maintenance impact on our ad valorem tax rate.
While the state allows a governing body to increase the debt service component of the tax rate to the
level necessary to repay bonded debt, there is an annual limit of 8% on the increase in the operations and
maintenance (O&M) component before the Town would be subject to a potential rollback election. The
O&M costs associated with the bond projects and the estimated time line of bringing those projects "on-
line" could cause our O&M tax rate component to exceed the 8% rollback tax rate. In order to ensure that
we do not exceed the rollback rate, Council may consider delaying projects or increasing the tax rate over
two years in anticipation of the substantial O&M costs.
Larry Lentzner, 303 Ridge View Lane -Thanked the Council for their support calling the November
Election.
Informational only, no action.
6. 09-321-T Consider and take appropriate action regarding a Resolution, accepting a Service and
Assessment Plan for authorized services (Emergency Services) for the Town Of Trophy Club
Public Improvement District No.1 (The Highlands at Trophy Club); setting a new date for a public
hearing; authorizing the publication of notice; enacting other related provisions; and providing an
effective date.
Action required by the Council: Review of the Service and Assessment Plan and passage of the
Resolution accepting the Service and Assessment Plan for Emergency Services and ordering the notices
and public hearing for September 28, 2009.
Town Manager Emmons explained two different divisions of the Public Improvement District. One
assessment offsets the fire rate since the PID residents are not included in the MUDs and the other
assessment retires the debt issued for the Public Improvements.
Motion made by Edstrom, seconded by Strother to approve a Resolution, accepting a Service and
Assessment Plan for authorized services (Emergency Services) for the Town of Trophy Club Public
Improvement District No. (The Highlands at Trophy Club); setting a new date for a public hearing;
authorizing the publication of notice; enacting other related provisions.
Town Manager Emmons noted that the reference to TCMUD 2 in the Draft Service Plan has been
removed.
Motion amended by Edstrom, seconded by Strother to approve with the correction as explained by Town
Manager Emmons.
Motion passed unanimously without further discussion.
August 24, 2009 Town Council Minutes 4
7. 09·323·T Consider and take appropriate action regarding an Ordinance of the Town Council of
the Town Of Trophy Club accepting and approving an update of the Service and Assessment Plan
and Updated Assessment Roll for Town of Trophy Club Public Improvement District No.1 (The
Highlands at Trophy Club); adopting findings and other related provisions; and providing an
effective date.
This ordinance covers the annual update required for assessments on the PID bonds. The annual update
required for assessments on emergency services is completed separately.
Lila Marsh and Julie Partain with Vinson & Elkins, LLP confirmed that this item does not require a public
hearing, so the only action for Council is to approve the Ordinance. The Service and Assessment Plan
for Emergency Services is scheduled for the September 28, 2009 Council meeting. The updated Service
and Assessment Plan is placed on this Agenda only for Council's review and discussion.
Motion made by Edstrom, seconded by Wilson to approve an Ordinance of the Town Council of the
Town Of Trophy Club accepting and approving an update of the Service and Assessment Plan and
Updated Assessment Roll for Town of Trophy Club Public Improvement District No.1 (The Highlands at
Trophy Club); adopting findings and other related provisions.
Motion passed unanimously without any discussion.
ADJOURN
Motion to adjourn made by Sterling, seconded by Wilson to adjourn. Meeting adjourned at 7:46 P.M.
Lisa Hennek, Town Secreta
Town of Trophy Club, Texas
August 24, 2009 Town Council Minutes
C6nnie White, Mayor
Town of Trophy Club, Texas
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