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Agenda Packet TC 04/07/2014Town Council Trophy Club Entities Meeting Agenda 100 Municipal Drive Trophy Club, Texas 76262 Svore Municipal Building Boardroom5:00 PMMonday, April 7, 2014 CALL TO ORDER AND ANNOUNCE A QUORUM WORKSHOP SESSION 1.2014-1026-T Discussion of agenda items posted for consideration on the Regular Session Council Agenda for April 7, 2014. 2.2014-1027-T Discussion of agenda items posted for consideration on the Regular Session Council Agenda for April 21, 2014. 4-21-2014 DRAFT Agenda.pdfAttachments: 3.2014-1069-T Presentation and update by Tom Batenhorst, GSBS Architects regarding joint facility planning; discussion of same. CONVENE INTO REGULAR SESSION INVOCATION PLEDGES Pledge of allegiance to the American Flag. Pledge of allegiance to the Texas Flag. EXECUTIVE SESSION Town Council Page 1 of 522 Meeting Date: Monday, April 7, 2014 April 7, 2014Town Council Meeting Agenda 4.2014-1073-T Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551, (the Texas Open Meetings Act) the Council will convene into closed executive session to discuss the following: A. Texas Government Code Section 551.071(2). “Consultation with Attorney” to consult with its attorney on a matter in which the duty of the attorney to the Governmental Body under the Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflict with the Open Meetings Act: (1) Interlocal Agreement between the Town and Trophy Club Municipal Utility District No. 1 for service to the PID B. Texas Government Code Section 551.071(2) “Consultation with Attorney” and Texas Government Code Section 551.072 “Deliberations about Real Property” to consult with its attorney on a matter in which the duty of the attorney to the Governmental Body under the Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflict with the Open Meetings Act and to discuss or deliberate the purchase, exchange, lease, or value of real property where deliberation in an open meeting would have a detrimental effect on the position of the governmental body in negotiations with a third person: (1) Joint Police and Town Hall Facility Property and related negotiations. RECONVENE INTO REGULAR SESSION 5.2014-1039-T Consider and take appropriate action regarding the Executive Session. 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. 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 will not be a separate discussion of these items. If discussion is desired, that item will be removed from the consent agenda and will be considered separately. 6.2014-980-T Consider and take appropriate action regarding the Minutes dated February 26, 2014. TC Minutes 2-26-2014.pdfAttachments: Town Council Page 2 of 522 Meeting Date: Monday, April 7, 2014 April 7, 2014Town Council Meeting Agenda 7.2014-979-T Consider and take appropriate action regarding the Minutes dated March 3, 2014. TC Minutes 3-3-2014.pdfAttachments: 8.2014-1028-T Consider and take appropriate action regarding the Minutes dated March 17, 2014. TC Minutes 3-17-2014.pdfAttachments: 9.2014-1068-T Consider and take appropriate action regarding the Minutes dated March 19, 2014. TC Minutes 3-19-2014.pdfAttachments: 10.2014-1071-T Consider and take appropriate action regarding an interlocal Joint Election Agreement between the Town and Tarrant County for administration of the May, 2014 Town election; and authorizing the Mayor or her designee to execute all necessary documents. DRAFT Tarrant County Joint Elections Contract.pdfAttachments: 11.2014-1072-T Consider and take appropriate action regarding an agreement between the Town and GVT.US, LTD (Subcontractor of Intermedix) to provide the Town with past due ambulance collections for out-of-district emergency services customers; and authorizing the Mayor or her designee to execute all necessary documents. Staff Report - Master Services Agreement for GVT Services.pdf Master Services Agreement - for GVT Services.pdf Intermedix Agreement.pdf Ambulance Receivables Analysis.pdf GVT ( Intermedix) Brochure.pdf Sample Collection Notice from GVT.pdf Attachments: 12.2014-982-T Consider and take appropriate action regarding an agreement between the Town and the City of Fort Worth establishing terms and conditions for the use of Fort Worth's Trunked Voice Radio Systems in connection with the provision of mutual aid assistance; and authorizing the Mayor or her designee to execute all necessary documents. Staff Report - Communication System Agreement.pdf Communication System Agreement.pdf Attachments: 13.2014-1078-T Consider and take appropriate action regarding an Ordinance repealing Section 6.01, "Rules of Procedure" of Article VI, "Town Council Rules of Procedure", of Chapter 1, "Administration" of the Code of Ordinances and adopting a new Chapter 1, Article VI, Section 6.01 "Rules of Procedure"; providing for the incorporation of premises, providing for an amendment; and providing an effective date. Staff Report - Town Council Rules of Procedures.pdf ORD 2014-10 Chap 1-Article VI- Sec 6 01- Rules of Procedure.pdf Exhibit A.pdf Attachments: Town Council Page 3 of 522 Meeting Date: Monday, April 7, 2014 April 7, 2014Town Council Meeting Agenda 14.2014-1018-T Consider and take appropriate action regarding the First Modification to Neighborhood 4, Isle of Turnberry, Subdivider's Agreement by and between the Town and Standard Pacific of Texas, Inc., and authorizing the Mayor or her designee to execute all necessary documents. staff report - 1st Modification to the Subdivider’s Agreement for Neighborhood 4, Isle of Turnberry.pdf 040714 First Modification - NH 4 Isle of Turnberry.pdf Subdividers Agreement - signed.pdf Attachments: PUBLIC HEARING 15.2014-1056-T Conduct a Public Hearing to consider the advisability of the creation of Reinvestment Zone Number Two, Town of Trophy Club, Texas, for tax increment financing purposes, the proposed zone being located within the boundaries of the Town on approximately 45 acres and located in the south central portion of the Town of Trophy Club near the intersection of State Highway 114 and Trophy Club Drive and other matters related to the proposed Zone. REGULAR SESSION 16.2014-1031-T Consider and take appropriate action regarding an Ordinance of the Town designating a certain contiguous geographic area in the Town as “Reinvestment Zone Number Two, Town of Trophy Club, Texas”; creating a Board of Directors for the Zone; providing effective and termination dates for the Zone; establishing a Tax Increment Fund for the Zone; containing other matters related to the Zone; and providing an effective date. Staff Report - TIRZ #2 Creation Ordinance.pdf ORD 2014-09 Creation Ordinance for TIRZ #2.pdf TIRZ #2 Boundary.pdf TIRZ #2 Public Hearing Notice.pdf TIRZ #2 Preliminary Project and Financing Plan 4-3-2014.pdf Attachments: 17.2014-1076-T Consider and take appropriate action regarding a Resolution appointing citizens to serve on the Board of Directors for the newly created Reinvestment Zone Number Two, Town of Trophy Club, Texas; appointing a member of the Board of Directors of the Reinvestment Zone Number Two to serve as a chairperson for the board and designating staggered terms of service; providing for the appointment of a Chairperson; and providing an effective date. Staff Report - TIRZ #2 Board Appointments.pdf RES 2014-08 Appointing Citizens to the TIRZ #2 Board.pdf Attachments: Town Council Page 4 of 522 Meeting Date: Monday, April 7, 2014 April 7, 2014Town Council Meeting Agenda 18.2014-1029-T Consider and take appropriate action regarding an Ordinance authorizing the issuance of Town Of Trophy Club, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2014 in the approximate aggregate principal amount of $2,500,000 for the purpose of paying contractual obligations for the purchase of land for a joint police and town hall facility, facility design costs, and various costs related thereto; levying a tax, and providing for the security for and payment of such certificates; approving the official statement; enacting other provisions relating to the subject; and declaring an effective date. Staff Report - $2 5M Certificates of Obligation Issue.pdf ORD 2014-08 $2.5M Certificates of Obligation Issue.pdf Preliminary Official Statement & Official Notice of Sale.pdf Standard & Poor's Report - Trophy Club.pdf Attachments: 19.2014-1030-T Consider and take appropriate action regarding the acceptance of the Audit for the Town of Trophy Club, Fiscal Year 2012-2013. Staff Report - Fiscal Year 2013 Audit.pdf Town of Trophy Club 2013 Government Auditing Standards Report.pdf 2013 CAFR - Final.pdf Attachments: 20.2014-1075-T Receive the Final Report of the Blue Ribbon Panel and its findings relative to the current governmental structure of the Town of Trophy Club; discuss and take appropriate action regarding same. Blue Ribbon Panel Final Report.pdfAttachments: 21.2014-1077-T Consider and take appropriate action to create a subcommittee of Council members to interview and make a recommendation to the Town Council for appointment of members to serve on the Town's Ethics Commission. Staff Report -Subcommittee of Council to Appoint Ethics Commission .pdf Stephen Flynn - Ethics Commission Application.pdf Katherine Hunter - Ethics Commission Application.pdf Roddy Metroka - Ethics Commission Application.pdf Gregory Wilson - Ethics Commission Application.pdf Attachments: 22.2014-983-T Consider and take appropriate action to designate a site for the installation of the Dinosaur Playground. staff report - Dinosaur Playground Location.pdf Dinosaur Playground Presentation.pdf Attachments: 23.2014-1035-T Town Manager Slye's update regarding the following; discussion of same. * Animal Shelter Advisory Committee - March 25, 2014 * Alliance Development Forum - March 28, 2014 * Tom Thumb Fuel Station Ribbon Cutting Ceremony - April 8, 2014 * Congressional Medal of Honor Escort - Wednesday, April 9, 2014 * Council Meeting Calendar - April/May Town Council Page 5 of 522 Meeting Date: Monday, April 7, 2014 April 7, 2014Town Council Meeting Agenda 24.2014-1036-T Mayor and Council Updates regarding training opportunities, educational sessions, and regional meetings; discussion of same. * Chamber Luncheon - April 1, 2014 * Emergency Preparedness Planning Council - April 3 * Metroport Meals on Wheels - April 4, 2014 25.2014-1037-T Items for Future Agendas. Town Council Future Agenda Items List updated 1-29-2014.pdfAttachments: ADJOURN * The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meeting Act, LGC.551.071 CERTIFICATION I certify that the above notice was posted on the front window of the Svore Municipal Building, 100 Municipal Drive, Trophy Club, Texas, on April 3, 2014 by 5:00 P.M. in accordance with Chapter 551, Texas Government Code. Tammy Ard 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 682-831-4600, 48 hours in advance, and reasonable accommodations will be made to assist you. I certify that the attached notice and agenda of items to be considered by this Board was removed by me from the front window of the Svore Municipal Building, 100 Municipal Drive, Trophy Club, Texas, on the __________ day of April, 2014. ________________________________, Title: ___________________________ Town Council Page 6 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1026-T Name: Status:Type:Agenda Item Workshop File created:In control:3/20/2014 Town Council On agenda:Final action:4/7/2014 Title:Discussion of agenda items posted for consideration on the Regular Session Council Agenda for April 7, 2014. Attachments: Action ByDate Action ResultVer. Discussion of agenda items posted for consideration on the Regular Session Council Agenda for April 7, 2014. Town Council Page 7 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1027-T Name: Status:Type:Agenda Item Workshop File created:In control:3/20/2014 Town Council On agenda:Final action:4/7/2014 Title:Discussion of agenda items posted for consideration on the Regular Session Council Agenda for April 21, 2014. Attachments:4-21-2014 DRAFT Agenda.pdf Action ByDate Action ResultVer. Discussion of agenda items posted for consideration on the Regular Session Council Agenda for April 21, 2014. Town Council Page 8 of 522 Meeting Date: Monday, April 7, 2014 Meeting Date 4/21/2014 File ID Dept Discussion of agenda items posted for consideration on the Regular Session Council Agenda for April 21, 2014.2014-1040-T Town Sec Discussion of agenda items posted for consideration on the Regular Session Council Agenda for May 5, 2014.2014-1041-T Town Sec Consider and take appropriate action regarding the Minutes dated January 24, 2014 and January 25, 2014.2014-883-T Town Sec Consider and take appropriate action regarding the Minutes dated March 24, 2014.2014-1070-T Town Sec Consider and take appropriate action regarding the Minutes dated April 7, 2014.2014-1042-T Town Sec Consider and take appropriate action regarding a Proclamation declaring Thursday, May 1st as Day of Prayer in Trophy Club. 2014-1043-T Town Sec Consider and take appropriate action regarding a proclamation declaring Saturday, April 26, 2014 as Arbor Day. Town Sec Participation agreement with Tarrant County TIRZ #1 2014-1028-T ATM Annual Award Presentation to the Police Department; and discussion of the same.2014-1044-T PD Recognition of the 2013 Citizen of the Year Nominees and announce the receipients; discussion of the same.2014-1047-T PIO Receive the Mayor's State of the Town Address; discussion of same.2014-1048-T Procurement & Travel Policy 2014-1045-T Finance Investment Policy Finance Consider and take appropriate action regarding a request for annexation by TC MUD No. 1 for water and wastewater service for Trophy Club Village Center.CD EDC 4B Resolution 2014-1074-T Town Attorney Town Council Liaison Updates; discussion of same: Scheduled by meetings Town Sec Town Manager Slye's update regarding the following; discussion of same.Town Mgr Mayor and Council Updates regarding training opportunities, educational sessions, and regional meetings; discussion of same.Town Sec Items for Future Agendas.Town Sec Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551, (the Texas Open Meetings Act) the Council will convene into closed executive session to discuss the following:2014-1049-T Town Sec A. To deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee; 1) Town Manager, Mike Slye 2) Town Attorney, Patricia Adams 3) Town Secretary, Tammy Ard Consider and take appropriate action regarding the Executive Session.2014-1050-T Town Sec Workshop Consent Regular Session Executive Session Town Council Page 9 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1069-T Name: Status:Type:Agenda Item Workshop File created:In control:3/26/2014 Town Council On agenda:Final action:4/7/2014 Title:Presentation and update by Tom Batenhorst, GSBS Architects regarding joint facility planning; discussion of same. Attachments: Action ByDate Action ResultVer. Presentation and update by Tom Batenhorst, GSBS Architects regarding joint facility planning; discussion of same. Town Council Page 10 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1073-T Name: Status:Type:Agenda Item Executive Session File created:In control:3/31/2014 Town Council On agenda:Final action:4/7/2014 Title:Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551, (the Texas Open Meetings Act) the Council will convene into closed executive session to discuss the following: A. Texas Government Code Section 551.071(2). “Consultation with Attorney” to consult with its attorney on a matter in which the duty of the attorney to the Governmental Body under the Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflict with the Open Meetings Act: (1) Interlocal Agreement between the Town and Trophy Club Municipal Utility District No. 1 for service to the PID B. Texas Government Code Section 551.071(2) “Consultation with Attorney” and Texas Government Code Section 551.072 “Deliberations about Real Property” to consult with its attorney on a matter in which the duty of the attorney to the Governmental Body under the Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflict with the Open Meetings Act and to discuss or deliberate the purchase, exchange, lease, or value of real property where deliberation in an open meeting would have a detrimental effect on the position of the governmental body in negotiations with a third person: (1) Joint Police and Town Hall Facility Property and related negotiations. Attachments: Action ByDate Action ResultVer. Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551, (the Texas Open Meetings Act) the Council will convene into closed executive session to discuss the following: A. Texas Government Code Section 551.071(2). “Consultation with Attorney” to consult with its attorney on a matter in which the duty of the attorney to the Governmental Body under the Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflict with the Open Meetings Act: (1) Interlocal Agreement between the Town and Trophy Club Municipal Utility District No. 1 for service to the PID B. Texas Government Code Section 551.071(2) “Consultation with Attorney” and Texas Government Code Section 551.072“Deliberations about Real Property” to consult with its attorney on a matter in which the duty of the attorney to the Governmental Body under the Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflict with the Open Meetings Act and to discuss or deliberate the purchase, exchange, lease, or value of real property wheredeliberation in an open meeting would have a detrimental effect on the position of the governmental body in negotiations with a third person: (1) Joint Police and Town Hall Facility Property and related negotiations. Town Council Page 11 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1039-T Name: Status:Type:Agenda Item Regular Session File created:In control:3/20/2014 Town Council On agenda:Final action:4/7/2014 Title:Consider and take appropriate action regarding the Executive Session. Attachments: Action ByDate Action ResultVer. Consider and take appropriate action regarding the Executive Session. Town Council Page 12 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-980-T Name: Status:Type:Agenda Item Consent Agenda File created:In control:3/6/2014 Town Council On agenda:Final action:3/17/2014 Title:Consider and take appropriate action regarding the Minutes dated February 26, 2014. Attachments:TC Minutes 2-26-2014.pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding the Minutes dated February 26, 2014. Town Council Page 13 of 522 Meeting Date: Monday, April 7, 2014 MINUTES FROM REGULAR SESSION TOWN COUNCIL MEETING FOR THE TOWN OF TROPHY CLUB LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS Monday, February 26, 2014 at 5:00 P.M. Svore Municipal Building Boardroom The Town Council of the Town of Trophy Club, Texas, met in a Regular Session on Monday, February 26, 2014. The meeting was held within the boundaries of the Town and was open to the public. STATE OF TEXAS § COUNTY OF DENTON § TOWN COUNCIL MEMBERS PRESENT: Connie White Mayor Jeannette Tiffany Mayor Pro Tem, Place 2 Philip Shoffner Council Member, Place 6 Greg Lamont Council Member, Place 5 Danny Mayer Council Member, Place 4 Bill Rose Council Member, Place 1 STAFF AND GUEST(S) PRESENT: Mike Slye Town Manager Stephen Seidel Assistant Town Manager Tammy Ard Town Secretary Patricia Adams Town Attorney Mayor White announced the date of Monday, February 26, 2014 called the Town Council to order and announced a quorum at 5:02p.m. CONVENE INTO REGULAR SESSION - START TIME – 5:02 P.M. The Invocation was offered by Chief Thomas. The Pledges were led by Town Manager Slye. REGULAR SESSION 1. Consider and take appropriate action regarding an Ordinance amending Ordinance 2014-02 ordering and calling a Joint General and Special Election to be held on May 10, 2014 for the purpose of electing one (1) Mayor for a three (3) year term and two (2) Council Members for Place #1 and #2 to the Town Council for a three (3) year term each; for the purpose of electing one (1) Council Member for Place #3 to the Town Council to fill the remainder of an unexpired term of office of Place #3 created by a vacancy (Term Expiring May, 2015); and for the purpose of placing a proposition on the ballot relating to the reauthorization of the local sales and use tax at the rate of one-fourth of one percent (0.25) in order to continue providing revenue for maintenance and repair of municipal streets for a specified period; providing that such amendment is being made in order to include information relative to Tarrant County election administration and polling locations and to restate the conditions of the May, 2014 election as previously adopted by Ordinance No. 2014-02; providing for canvassing of returns; providing for a runoff election as necessary; adopting provisions relative to publication and other matters necessary to conduct the election; and providing an effective date. This item amends Ordinance No. 2014-02 adopted on February 17, 2014 in order to include Tarrant County election administration and polling locations for the May 10, 2014 Joint and Special Election. Town Council Page 14 of 522 Meeting Date: Monday, April 7, 2014 Motion made by Council Member Rose, seconded by Council Member Mayer, to approve Ordinance 2014-03. Motion passed unanimously. 2. Consider and take appropriate action regarding an Ordinance of the Town Council of the Town of Trophy Club, Texas, calling a bond election to be held on May 10, 2014 within the Town for the issuance of General Obligations Bonds for a Joint Town Hall and Police Facility and renovations to existing Town facilities; making provisions for the conduct of the election and other provisions relating thereto; and providing an effective date. This item proposes placing a proposition on the May 10, 2014 Election Ballot to consider an $11.7M General Obligation bond for a joint Police/Town Hall facility and renovations to the existing Public Services Building allowing the citizens to have a voice. Mark McLiney, Senior Vice President for Southwest Securities presented three different options for issuance of General Obligation Bonds (please see attached) for a Joint Town Hall/Police Facility and answered questions regarding the same. New Issue Debt Model - $2.5M Certificates of Obligation (CO) Bonds and $11.7M General Obligation (GO) Bonds ($2.5M CO issued on March 31, 2014; $7.25M GO Bond issued June 15, 2014; and $4.45M GO Bond issued March 1, 2015) Option 1 – would not increase the current tax rate to service the proposed debt Option 2 – Level Debt Service ($0.025 tax rate increase to save $1.6 Million over the life of the bond) Option 3 – 10 year Maturity Schedules The following citizens addressed the Town Council regarding this agenda item:  Jim Hase, 315 Lakewood Drive  Susan Edstrom, 269 Oak Hill Drive  Jim Parrow, 8 Brookfield Court  Julie Folley, 2407 Lilyfield Drive  Scott Folley, 2407 Lilyfield Drive Motion made by Council Member Rose, seconded by Mayor Pro Tem Tiffany, to approve Ordinance 2014-04 calling a bond election to be held on May 10, 2014 within the Town for the issuance of General Obligations Bonds for a Joint Town Hall and Police Facility and renovations to existing Town facilities with no tax increase as shown in Option 1 as presented by Mark McLiney. Council Member Lamont motion to amend the motion requesting to separate the $11.7 million bond into two separate ballot items number 1. Police Facility for $4 million and number 2. Town Hall and renovations to existing Town facilities for $7.5 million, no second on this motion. Motion carried 4-2-0 with Council Member Mayer, Council Member Rose, Mayor Pro Tem Tiffany, and Mayor White, voting for and Council Member Shoffner and Council Member Lamont, voting against. 3. Consider and take appropriate action regarding a Resolution of the Town Council Repealing Resolution No. 2014-05 and adopting a new Resolution relating to the Giving of Notice of Intention to issue Town of Trophy Club, Texas Combination Tax and Revenue Certificates of Obligation, Series 2014 for the purpose of paying contractual obligations for the purchase of land for a joint police and town hall facility, facility design costs, and various costs related thereto; and providing an effective date. Town Council Page 15 of 522 Meeting Date: Monday, April 7, 2014 This item proposes to repeal the $9.5M of Certificates of Obligation (COs) previously passed by Council and adopt a new Notice of Intention for $2.5M in COs. The $2.5M is intended for the purchase of property for the future joint Police/Town Hall facility and move forward with the design process. Motion made by Council Member Rose, seconded by Council Member Shoffner, to approve Resolution 2014-07 giving of Notice of Intention to issue Town of Trophy Club, Texas Combination Tax and Revenue Certificates of Obligation, Series 2014. Motion passed unanimously. 4. Consider and take appropriate action to ratify notice to CPS Civil, the bidder previously awarded for the Indian Creek rehabilitation project, that the Town is rejecting its bid for that project and will not enter into a Contract at this time, and directing staff to complete the redesign on the project and rebid upon completion of the redesign. Motion made by Council Member Mayer, seconded by Council Member Rose, to approve action to ratify notice to CPS Civil, the bidder previously awarded for the Indian Creek rehabilitation project, that the Town is rejecting its bid for that project and will not enter into a Contract at this time, and directing staff to complete the redesign on the project and rebid upon completion of the redesign. Motion passed unanimously. ADJOURN Motion made by Council Member Mayer, seconded by Mayor Pro Tem Tiffany, to adjourn. Motion carried unanimously. Meeting adjourned at 7:30 p.m. ___________________________________ ___________________________________ Tammy Ard, Town Secretary Connie White, Mayor Town of Trophy Club, Texas Town of Trophy Club, Texas Town Council Page 16 of 522 Meeting Date: Monday, April 7, 2014 ." ;fown of Trophy Club, Texas Option 1 -No Tax Rate Increase $14,200,000 New Issue Debt Model February 26, 2014 $2,500,000 CO's and $11,700,000 GO's $2,500,000 CO issued on March 31, 2014; $7,250,000 GO issued June 15, 2014; and $4,450,000 GO issued March 1, 2015 (if Interest rates allow, we will delay this issue until summer of 2015 to eliminate a fiscal year 2015 payment Current Tax Rate Historical Valuations (Excludes Freeze Values) M&O I&S 0.3843 0.1150 76.97% 23.03% Tax Year 1 Fiscal Year Ending 9/30 I Taxable Values I Growth Rate Total 0.4993 1 100.00% 2005 2006 $547,376,409 2006 2007 $606,710,168 10.84% Taxable Value Growth Rate (2015·2035) 2007 2008 $677,843,955 11.72% 2015 10% 2008 2009 $705,320,233 4.05% 2016 9.0% 2009 2010 $745,081,800 5.64% 2017 5% 2010 2011 $768,852,021 3.19% 2018·2035 1% 2011 2012 $828,287,155 7.73% 2012 2013 $916,971,509 10.71% Freeze Growth 0% 2013 2014 $1,057,370,856 15.31% 2013 Revenue From Freeze Taxable Values $595,607 23.03% of freeze to Debt Service $137,182 2013 I&S Fund Balance Projection $119,722 1 Fiscal Year I 1 2 Projected I 3I 1&5 Revenue I 1 4 Plus: I 1 5 Revenue I 6 I 7 I 1 Revenue From 1 Total Revenue!1 8 Current 1&5 I 1 9 Surplus I 10 I 1 $2,500,000 CO's 1 11 $7,250,000 GO's I 12 1$4,450,000 GO's 13 Surplus Ending 9/30 Taxable Values With $0.115 rate Freeze Adjusted From CCD Street Maint. For Debt Service Debt Service (Shortfall) Series 2014 Series 2014 Series 2015 (Shortfall) at 3.75% at 4.00% at 5.00% 2014 $1,057,370,856 $1,215,976 $137,182 $67,500 $13,287 $1,433,945 $1,369,878 $64,067 $64,067 2015 $1,163,107,942 $1,337,574 $137,182 $75,000 $25,000 $1,574,756 $1,053,874 $520,882 $161,979 $376,222 $111,250 ($128,569) 2016 $1,267,787,656 $1,457,956 $137,182 $75,000 $25,000 $1,695,137 $949,054 $746,083 $182,813 $324,000 $237,500 $1,771 2017 $1,331,177,039 $1,530,854 $137,182 $50,000 $25,000 $1,743,035 $954,348 $788,687 $184,438 $332,600 $266,750 $4,900 2018 $1,344,488,810 $1,546,162 $137,182 $50,000 $25,000 $1,758,344 $962,503 $795,841 $185,875 $340,800 $264,500 $4,666 2019 $1,357,933,698 $1,561,624 $137,182 $25,000 $25,000 $1,748,805 $965,278 $783,528 $182,125 $318,600 $282,250 $553 2020 $1,371,513,035 $1,577,240 $137,182 $25,000 $25,000 $1,764,422 $966,833 $797,588 $183,375 $337,200 $274,000 $3,013 2021 $1,385,228,165 $1,593,012 $137,182 $0 $25,000 $1,755,194 $960,489 $794,705 $184,438 $330,000 $276,000 $4,268 2022 $1,399,080,447 $1,608,943 $137,182 $0 $25,000 $1,771,124 $965,667 $805,458 $185,313 $328,000 $287,750 $4,395 2023 $1,413,071,251 $1,625,032 $137,182 $0 $25,000 $1,787,214 $754,258 $1,032,956 $186,000 $561,000 $283,750 $2,206 2024 $1,427,201,964 $1,641,282 $137,182 $0 $25,000 $1,803,464 $752,088 $1,051,376 $186,500 $579,600 $284,750 $526 2025 $1,441,473,983 $1,657,695 $137,182 $0 $25,000 $1,819,877 $717,294 $1,102,582 $186,813 $637,000 $275,500 $3,270 2026 $1,455,888,723 $1,674,272 $137,182 $0 $1,811,454 $736,778 $1,074,676 $181,938 $616,600 $276,500 ($362) 2027 $1,470,447,610 $1,691,015 $137,182 $0 $1,828,196 $740,244 $1,087,952 $182,063 $621,400 $282,250 $2,240 2028 $1,485,152,086 $1,707,925 $137,182 $0 $1,845,107 $510,538 $1,334,569 $182,000 $620,400 $532,500 ($331) 2029 $1,500,003,607 $1,725,004 $137,182 $0 $1,862,186 $384,906 $1,477,280 $186,750 $638,800 $570,000 $81,730 2030 $1,515,003,643 $1,742,254 $137,182 $0 $1,879,436 $385,263 $1,494,173 $186,125 $670,800 $569,750 $67,498 2031 $1,530,153,680 $1,759,677 $137,182 $0 $1,896,858 $1,896,858 $185,313 $845,800 $568,500 $297,246 2032 $1,545,455,217 $1,777,273 $137,182 $0 $1,914,455 $1,914,455 $184,313 $848,000 $571,250 $310,893 2033 $1,560,909,769 $1,795,046 $137,182 $0 $1,932,228 $1,932,228 $183,125 $849,000 $572,750 $327,353 2034 $1,576,518,866 $1,812,997 $137,182 $0 $1,950,178 $1,950,178 $186,750 $843,800 $568,000 $351,628 2035 $1,592,284,055 $1,831,127 $137,182 $0 $1,968,308 $1,968,308 $847,600 $572,250 $548,458 Total -------­ $2,880,815 ---------­-$14,129,292 $3,668,042 $11,867,222 $7,927,750 Total P&I $23,463,014 Town Council Page 17 of 522 Meeting Date: Monday, April 7, 2014 ~. ;,Town of Trophy Club, Texas Option 2 -Level Debt Service $14,200,000 New Issue Debt Model February 26, 2014 $2,500,000 CO's and $11,700,000 GO's $2,500,000 CO issued on March 31, 2014; $7,250,000 GO issued June 15, 2014; and $4,450,000 GO issued March 1, 2015 (if interest rates aI/ow, we will deiay this issue until summer of 2015 to eiiminate a fiscal year 2015 payment Current Tax Rate Historical Valuations (Excludes Freeze Values) M&O 0.3843 73.30% Tax Year Fiscal Year Taxable Growth I&S 0.1400 26.70% 1 Ending 9/30 1 Values 1 Rate Total 0.5243 ~ 100.00% 2005 2006 $547,376,409 2006 2007 $606,710,168 10.84% Taxable Value Growth Rate (2015-2035) 2007 2008 $677,843,955 11.72% 2015 10% 2008 2009 $705,320,233 4.05% 2016 9.0% 2009 2010 $745,081,800 5.64% 2017 5% 2010 2011 $768,852,021 3.19% 2018-2035 1% 2011 2012 $828,287,155 7.73% 2012 2013 $916,971,509 10.71% Freeze Growth 0% 2013 2014 $1,057,370,856 15.31% 2013 Revenue From Freeze Taxable Values $595,607 23.03% of freeze to Debt Service $159,041 2013 I&S Fund Balance Projection $119,722 1 I 2 I 3 I 4 I 5 I 6 I 7 I 8 I 9 I 10 I 11 I 12 13 Fiscal Year 1 Projected I I&S Revenue 1 Plus: 1 Revenue.1 Revenue From 1 Total Revenue ~I Current I&S 1 Surplus 1 $2,500,000 CO's 1 $7,250,000 GO's 1$4,450,000 GO's Surplus Ending 9/30 Taxable Values With $0.115 rate Freeze Adjusted From CeD Street Maint. For Debt Service Debt Service (Shortfall) Series 2014 Series 2014 Series 2015 -<Shortfall) at 3.75% at 4.00% at 5.00% 2014 $1,057,370,856 $1,480,319 $159,041 $67,500 $13,287 $1,720,147 $1,369,878 $350,268 $64,067 2015 $1,163,107,942 $1,628,351 $159,041 $75,000 $25,000 $1,887,392 $1,053,874 $833,518 $161,979 $546,222 $111,250 $14,067 2016 $1,267,787,656 $1,774,903 $159,041 $75,000 $25,000 $2,033,943 $949,054 $1,084,889 $182,813 $522,200 $357,500 $22,377 2017 $1,331,177,039 $1,863,648 $159,041 $50,000 $25,000 $2,097,688 $954,348 $1,143,340 $184,438 $517,600 $355,750 $85,553 2018 $1,344,488,810 $1,882,284 $159,041 $50,000 $25,000 $2,116,325 $962,503 $1,153,822 $185,875 $517,800 $358,750 $91,397 2019 $1,357,933,698 $1,901,107 $159,041 $25,000 $25,000 $2,110,148 $965,278 $1,144,870 $182,125 $517,600 $356,250 $88,895 2020 $1,371,513,035 $1,920,118 $159,041 $25,000 $25,000 $2,129,159 $966,833 $1,162,326 $183,375 $517,000 $358,500 $103,451 2021 $1,385,228,165 $1,939,319 $159,041 $0 $25,000 $2,123,360 $960,489 $1,162,871 $184,438 $521,000 $355,250 $102,184 2022 $1,399,080,447 $1,958,713 $159,041 $0 $25,000 $2,142,753 $965,667 $1,177,087 $185,313 $519,400 $356,750 $115,624 2023 $1,413,071,251 $1,978,300 $159,041 $0 $25,000 $2,162,340 $754,258 $1,408,083 $186,000 $517,400 $357,750 $346,933 2024 $1,427,201,964 $1,998,083 $159,041 $0 $25,000 $2,182,123 $752,088 $1,430,036 $186,500 $520,000 $358,250 $365,286 2025 $1,441,473,983 $2,018,064 $159,041 $0 $25,000 $2,202,104 $717,294 $1,484,810 $186,813 $522,000 $358,250 $417,747 2026 $1,455,888,723 $2,038,244 $159,041 $0 $2,197,285 $736,778 $1,460,507 $181,938 $518,400 $357,750 $402,419 I2027 $1,470,447,610 $2,058,627 $159,041 $0 $2,217,667 $740,244 $1,477,423 $182,063 $519,400 $356,750 $419,211 2028 $1,485,152,086 $2,079,213 $159,041 $0 $2,238,254 $510,538 $1,727,716 $182,000 $519,800 $355,250 $670,666 2029 $1,500,003,607 $2,100,005 $159,041 $0 $2,259,046 $384,906 $1,874,139 $186,750 $519,600 $358,250 $809,539 I 2030 $1,515,003,643 $2,121,005 $159,041 $0 $2,280,046 $385,263 $1,894,783 $186,125 $518,800 $355,500 $834,358 2031 $1,530,153,680 $2,142,215 $159,041 $0 $2,301,256 $2,301,256 $185,313 $517,400 $357,250 $1,241,293 2032 $1,545,455,217 $2,163,637 $159,041 $0 $2,322,678 $2,322,678 $184,313 $520,400 $358,250 $1,259,715 2033 $1,560,909,769 $2,185,274 $159,041 $0 $2,344,314 $2,344,314 $183,125 $517,600 $353,500 $1,290,089 2034 $1,576,518,866 $2,207,126 $159,041 $0 $2,366,167 $2,366,167 $186,750 $519,200 $358,250 $1,301,967 2035 $1,592,284,055 $2,229,198 $159,041 $0 $2,388,238 $2,388,238 $520,000 $357,000 $1,511,238 Total $3,339,852 $14,129,292 $3,668,042 $10,928,822 $7,252,000 - Total P&I $21,848,864 difference between Option 1 and Option 2 $1,614,150 Town Council Page 18 of 522 Meeting Date: Monday, April 7, 2014 ;Town of Trophy Club, Texas Option 3 -10 Year Maturity Schedules •$14,200,000 New Issue Debt Model February 26, 2014 $2,500,000 CO's and $11,700,000 GO's $2,500,000 CO issued on March 31, 2014; $7,250,000 GO issued June 15, 2014; and $4,450,000 GO issued March 1, 2015 (if Interest rates aI/ow, we will delay this issue until summer of 2015 to eliminate a fiscal year 2015 payment Current Tax Rate Historical Valuations Excludes Freeze ValueSl M&O I&S 0.3843 0.1150 76.97% 23.03% Tax Year I Fiscal Year Ending 9/30 I Taxable Values I Growth Rate Total 0.4993 I 100.00% 2005 2006 $547,376,409 2006 2007 $606,710,168 10.84% Taxable Value Growth Rate (2015.2035) 2007 2008 $677,843,955 11.72% 2015 10% 2008 2009 $705,320,233 4.05% 2016 9.0% 2009 2010 $745,081,800 5.64% 2017 5% 2010 2011 $768,852,021 3.19% 2018·2035 1% 2011 2012 $828,287.155 7.73% 2012 2013 $916,971,509 10.71% Freeze Growth 0% 2013 2014 $1,057,370,856 15.31% 2013 Revenue From Freeze Taxable Values $595,607 23.03% of freeze to Debt Service $137,182 2013 I&S Fund Balance Projection $119,722 1 Fiscal Year II 2 Projected II 3 I&S Revenue II 4 Plus: I 5I Revenue I 6 I 7 JI Revenue From I Total Revenue!1 8 Current I&S II 9 Surplus I 10 I 11I$2,500,000 CO's I $7,250,000 GO's I 12 1$4,450,000 GO's 13 Surplus Endina 9/30 Taxable Values With $0.115 rate Freeze Adjusted From CCD Street Malnt. For Debt Service Debt Service (Shortfall) Series 2014 Series 2014 Series 2015 (Shortfall) at 3.75% at 4.00% at 5.00% 2014 $1,057.370,856 $1,215,976 $137,182 $67,500 $13,287 $1,433,945 $1,369,878 $64,067 $64,067 2015 $1,163,107,942 $1,337,574 $137,182 $75,000 $25,000 $1,574,756 $1,053,874 $520,882 $311,979 $906,222 $111,250 ($808,569) 2016 $1,267,787,656 $1,457.956 $137,182 $75,000 $25,000 $1,695,137 $949,054 $746,083 $307,188 $902,800 $577,500 ($1.041,404) 2017 $1,331,177,039 $1,530,854 $137.182 $50,000 $25,000 $1,743,035 $954,348 $788,687 $308,938 $902,400 $574,750 ($997,400) 2018 $1,344,488,810 $1,546,162 $137,182 $50,000 $25,000 $1,758,344 $962,503 $795,841 $310,313 $901.000 $576,250 ($991,722) 2019 $1,357,933,698 $1,561,624 $137,182 $25,000 $25,000 $1,748,805 $965,278 $783,528 $311,313 $898,600 $576,750 ($1,003,135) 2020 $1,371,513,035 $1,577,240 $137,182 $25,000 $25,000 $1,764,422 $966,833 $797,588 $311,938 $900,200 $576,250 ($990,799) 2021 $1,385,228,165 $1,593,012 $137,182 $0 $25,000 $1,755,194 $960,489 $794,705 $307,188 $900,600 $574,750 ($987,832) 2022 $1,399,080,447 $1,608,943 $137,182 $0 $25,000 $1,771,124 $965,667 $805,458 $307,250 $899,800 $577,250 ($978.842) 2023 $1,413,071,251 $1,625,032 $137,182 $0 $25,000 $1,787,214 $754,258 $1,032,956 $306,938 $897,800 $578,500 ($750,281) 2024 $1,427,201,964 $1,641,282 $137,182 $0 $25,000 $1,803,464 $752,088 $1,051,376 $311,250 $899,600 $573,500 ($732,974) 2025 $1,441,473,983 $1,657,695 $137,182 $0 $25,000 $1,819,877 $717,294 $1,102,582 $577,500 $525,082 2026 $1,455,888,723 $1,674,272 $137,182 $0 $1,811,454 $736,778 $1,074,676 $1,074,676 2027 $1,470,447,610 $1,691,015 $137,182 $0 $1,828,196 $740,244 $1,087,952 $1,087,952 2028 $1,485,152,086 $1,707,925 $137,182 $0 $1,845,107 $510,538 $1,334,569 $1,334,569 2029 $1,500,003,607 $1,725,004 $137,182 $0 $1,862,186 $384,906 $1,477,280 $1,477,280 2030 $1,515,003,643 $1,742,254 $137,182 $0 $1,879,436 $385,263 $1,494,173 $1,494,173 2031 $1,530,153,680 $1,759,677 $137,182 $0 $1,896,858 $1,896,858 $1,896,858 2032 $1.545,455,217 $1,777,273 $137,182 $0 $1,914,455 $1,914,455 $1,914,455 2033 $1,560.909.769 $1,795,046 $137,182 $0 $1,932,228 $1,932,228 $1,932,228 2034 $1.576,518,866 $1,812,997 $137,182 $0 $1,950,178 $1,950,178 $1,950,178 2035 $1,592,284.055 $1.831,127 $137.182 $0 $1,968,308 $1,968,308 $1,968,308 Total $2,880,815 $14,129,292 $3,094,292 $9,009,022 $5,874,25~ _ Total P&I $17,977,564 difference between Option 1 $5,485,450 difference between Option 2 $3,871,300 Town Council Page 19 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-979-T Name: Status:Type:Agenda Item Consent Agenda File created:In control:3/6/2014 Town Council On agenda:Final action:4/7/2014 Title:Consider and take appropriate action regarding the Minutes dated March 3, 2014. Attachments:TC Minutes 3-3-2014.pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding the Minutes dated March 3, 2014. Town Council Page 20 of 522 Meeting Date: Monday, April 7, 2014 MINUTES FROM REGULAR SESSION TOWN COUNCIL MEETING FOR THE TOWN OF TROPHY CLUB LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS Monday, March 3, 2014 at 5:00 P.M. Svore Municipal Building Boardroom The Town Council of the Town of Trophy Club, Texas, met in a Regular Session on Monday, March 3, 2014. The meeting was held within the boundaries of the Town and was open to the public. STATE OF TEXAS § COUNTY OF DENTON § TOWN COUNCIL MEMBERS PRESENT: Connie White Mayor Jeannette Tiffany Mayor Pro Tem, Place 2 Philip Shoffner Council Member, Place 6 Greg Lamont Council Member, Place 5 Danny Mayer Council Member, Place 4 Bill Rose Council Member, Place 1 STAFF AND GUEST(S) PRESENT: Mike Slye Town Manager Stephen Seidel Assistant Town Manager Tammy Ard Town Secretary Patricia Adams Town Attorney April Reiling PIO/Marketing Manager Scott Kniffen Police Chief Steven Glickman Finance Director Carolyn Huggins Community Development Director Mayor White announced the date of Monday, March 3, 2014 called the Town Council to order and announced a quorum at 5:02 p.m. WORKSHOP SESSION 1. Discussion of agenda items posted for consideration on the Regular Session Council Agenda for March 3, 2014. 2. Discussion of agenda items posted for consideration on the Regular Session Council Agenda for March 17, 2014. 3. Discussion of process and procedures for conducting Town meetings and currently adopted Rules of Procedures for Town Council Meetings. Town Attorney, Patricia Adams discussed and answered questions regarding the process and procedures for conducting town meetings. Council indicated changes they would like to have made to the Rules of Procedures for Town Council Meetings. Town Attorney Adams notified the Council that if Council completes the changes tonight the changes would be brought back on the March 17th agenda for approval. 4. Discussion regarding a proposed Home Firearms Safety Program, a course for residents, and a fee for the course. Town Council Page 21 of 522 Meeting Date: Monday, April 7, 2014 Chief Kniffen provided a brief overview of the Home Firearms Safety Program. The course outline specifies the goal of the course is, “To teach the basic knowledge and skills, and to explain the attitude necessary for safe handling and storage of guns in the home. The course would be offered quarterly, if there was sufficient interest, and would be open, initially, to residents and their children age 12 or older. In order to cover the cost of the materials and time involved, a fee of $15 per person is recommended. CONVENE INTO REGULAR SESSION - START TIME – 6:19 P.M. The Invocation was offered by Chief Kniffen. The Pledges were led by Council Member Bill Rose. EXECUTIVE SESSION 5. Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551, (the Texas Open Meetings Act) the Council will convene into closed executive session to discuss the following: A. Texas Government Code Section 551.071(2). “Consultation with Attorney” to consult with its attorney on a matter in which the duty of the attorney to the Governmental Body under the Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflict with the Open Meetings Act: Water and wastewater services for PID; CCN; alternative services for the PID; legislative processes and actions; terms of representation; terms of interlocal agreement for provision of water and wastewater services; Town assets and related matters. CONVENE INTO EXECUTIVE SESSION - START TIME – 6:21 P.M. RECONVENE INTO REGULAR SESSION - START TIME – 7:30 P.M. RECONVENE INTO REGULAR SESSION 6. Consider and take appropriate action regarding the Executive Session. No action taken on executive session agenda item #5 at this time; continued discussion of executive session agenda item #5 during executive session for agenda item #22. Mayor Pro Tem Tiffany made a public apology for a statement made at the February 26th Town Council Special Session Meeting. 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. Julie Folley, 2407 Lilyfield Drive addressed the Council regarding a comment that was made at a previous Town Council Meeting by a Council Member, appreciates the apology, and asks that this be a learning experience and move forward. 7. Consider and take appropriate action regarding a Proclamation declaring March 16-22, 2014 as Poison Prevention Week. Town Council Page 22 of 522 Meeting Date: Monday, April 7, 2014 Motion made by Council Member Rose, seconded by Council Member Mayer, to declaring March 16-22, 2014 as Poison Prevention Week. Motion passed unanimously. 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 will not be a separate discussion of these items. If discussion is desired, that item will be removed from the consent agenda and will be considered separately. 8. Consider and take appropriate action regarding the Minutes dated February 17, 2014. 9. Consider and take appropriate action regarding a contract between the Town and Linebarger Goggan Blair & Sampson, LLC to provide Professional Municipal Court Account Collection Services for the Trophy Club Municipal Court; and authorizing the Mayor or her designee to execute all necessary documents. 10. Consider and take appropriate action regarding the approval of an expenditure from the Court Technology Fund for the purchase of the SunGard to Incode Interface Court software, including the initial cost and associated yearly annual maintenance costs for each year thereafter that the software is utilized. 11. Consider and take appropriate action regarding granting a Special Privilege Request to the Trophy Club Women’s Club to hold two Community Garage Sale Events in 2014. Applicant: Heather Wick on behalf of Trophy Club Women’s Club. 12. Consider and take appropriate action regarding a revised Final Plat of Neighborhood 7, Phase 3C, of The Highlands at Trophy Club, an approximate 31.487 acre tract of land, consisting of 107 residential lots and 4 open space lots. Applicant: Peloton Land Solutions on behalf of High Trophy Development, LLC Motion made by Council Member Mayer, seconded by Council Member Lamont, to approve the Consent Agenda. Motion passed unanimously. PUBLIC HEARING 13. Public Hearing regarding a request for approval of amendments to Planned Development No. 30 (PD-30), The Shops at Trophy Club, to amend the Town's Comprehensive Zoning Ordinance and Zoning Map; and to amend Exhibit "B" entitled "Planned Development District Development Standards" by amending various provisions of Exhibit "B". Applicant: JSB Properties, LP represented by Bill Dahlstrom, Jackson Walker L.L.P. CONVENE INTO PUBLIC HEARING - START TIME – 7:50 P.M. Mike Twichell, Architect presented (attached) an overview with the changes requested at the P&Z Public Hearing and answered questions regarding PD-30 “Trophy Club Town Center” The following citizens addressed the Town Council regarding this agenda item:  Rhylan Rowe, 404 Skyline Drive  Robert Hoch, 245 Oak Hill Drive  Jim Parrow, 8 Brookfield Court  Larry Mundy, 8 Brookhollow Lane  Nick Sanders, 7 Hayes Court RECONVENE INTO REGULAR SESSION - START TIME – 8:17 P.M. Town Council Page 23 of 522 Meeting Date: Monday, April 7, 2014 REGULAR SESSION 14. Consider and take appropriate action regarding an Ordinance amending the Fiscal Year 2013-2014 Budget of the Town (Budget Amendment No. 1) making a transfer of appropriations in accordance with the Town Charter in order to fund software, equipment, and equipment maintenance purchases; and providing for an effective date. (Item previously outlined at the February 3, 2014 and February 17, 2014 Town Council meetings.) The proposed budget amendment addresses the needs presented at the February 3rd Town Council Meeting where the equipment and software needs were outlined and February 17th Town Council Meeting where the funding plan was presented. Motion made by Council Member Rose, seconded by Mayor Pro Tem Tiffany, to approve Ordinance 2014-05 executing the purchase of the less expensive maintenance cost software package and painting the slash pad. Motion passed unanimously. 15. Consider and take appropriate action regarding a request for Site Plan approval for Samuel Beck Elementary School, 401 Parkview Drive, Lot 3, Block 1, Northwest Independent School District East Campus Addition. Applicant: Rob Morse, RLK Engineering on behalf of Northwest ISD. Rob Morse, RLK Engineering, provided an overview of a revised plan to add 7.374 square feet to Samuel Beck Elementary School to include the addition of three rooms (one art and two music rooms) and a kitchen, renovation to one art room, the addition of sidewalks and twelve trees. The renovation and additions will allow for up to an additional 850 students to this campus. Motion made by Council Member Rose, seconded by Mayor Pro Tem Tiffany, to approve the Site Plan approval for Samuel Beck Elementary School, 401 Parkview Drive, Lot 3, Block 1, Northwest Independent School District East Campus Addition. Motion passed unanimously. 16. Consider and take appropriate action regarding an Ordinance of the Town Council amending Ordinance No. 2012-04 P&Z, PD Planned Development No. 30, known as The Shops at Trophy Club, amending the Town's Comprehensive Zoning Ordinance and Zoning Map, amending Exhibit "B" entitled "Planned Development District Development Standards" by amending various provisions of Exhibit "B"; providing a penalty for violations; and providing an effective date. Applicant: JSB Properties, LP represented by Bill Dahlstrom, Jackson Walker L.L.P. Proposed amendments discussed and questions answered by the applicants. Larry Hoover, 118 Berkshire, addressed the council regarding this agenda item. Motion made by Council Member Rose, seconded by Mayor Pro Tem Tiffany, to approve Ordinance 2014-06 with amendments to Exhibit “B” as recommended from P&Z with the following changes: (NOTE – page numbers reflect Exhibit “B” Draft February 25, 2014) Town Council Page 24 of 522 Meeting Date: Monday, April 7, 2014 • page 8 - AMENDED TO READ: 4. COMMUNITY FACILITIES  Auditorium, Gym  Heliport/Helipad  Municipal Admin,  Park, Playground, Playlots, Related Facilities  Parking Garage  Privately Owned & Operated Playground  Public Safety Facilities  Radio, Television, Microwave, Cellular towers attached to buildings (if camouflaged so that they are not visible to the public)  Social, Recreational, Assembly Bldgs  Tennis, Handball, Racquet Ball Clubs  Utility Facilities, Office • page 40 - AMENDED TO READ: ii. Close horizontal adjacency of different uses is permitted for ground floor adjacencies for commercial, office and residential uses as set forth herein. Residential and Commercial occupancies may be located on the same floor of the same Building, but residential uses shall not be located on the ground floor, except as otherwise permitted herein. • page 41 - AMENDED TO READ: d. The minimum are in an Urban Residential units on the first floor is 1,200 square feet. 2. a. Ground floor commercial, office and residential uses as set forth herein retail, and in a mixed- use development shall be visually oriented toward and have their primary entrance oriented toward the street or private drive frontage. • page 43 - AMENDED TO READ: a. Buildings fronting on Indian Creek Drive shall be designed to accommodate the following: i. Ground floor retail, office, commercial, Public Safety Facilities and ii. Second floor and above Urban Residential, office uses, or Public Safety Facilities. • page 45 - AMENDED TO READ: e. Balconies (not allowed in facades fronting Trophy Club Drive) projecting from the building face, framed canopies, awnings, bay windows, decorative projections, moldings, cornices, trim, and signage may project 6’-0” into 43 rights-of-way and easements. 4. b. Unless otherwise dictated by applicable codes and ordinances, non-residential and non-parking buildings shall have a minimum of 30% and a maximum of 40% of the ground floor façade, up to 10’-0” above the typical street frontage finished sidewalk level, comprised of windows, storefronts, and/or entrances. This standard shall only apply to all Type ‘A’ Drive facades and the SH 114 Frontage Road, and Trophy Club Drive facades. • page 46 - AMENDED TO READ: b. Unless otherwise dictated by applicable codes and ordinances, non-residential and non-parking buildings fronting State Highway 114 Frontage Road and Trophy Club Drive, within 400 feet of State Highway 114 frontage road, shall have a minimum of 30% and a maximum of 40% of the ground floor façade, up to 10’-0” above the typical street frontage finished sidewalk level, comprised of windows, storefronts, and/or entrances. Town Council Page 25 of 522 Meeting Date: Monday, April 7, 2014 • page 47 - AMENDED TO READ: d. Materials and finishes used for windows, storefronts, entrances, and entrance vestibules shall be at the discretion of the Property Owner and/or Tenants as long as a minimum of 85% of Type ‘A’ Drive facades are finished in masonry (brick, stone, stucco using the 3 step process, cast stone, or glass block). f. Unless otherwise dictated by applicable codes and ordinances, for each building frontage on Indian Creek Drive, secondary streets, and private and mews streets, a minimum of 30% and a maximum of 40% of the ground floor façade, up to 10’-0” above the typical street frontage finished sidewalk level, comprised on windows, storefronts, and/or entrances. • page 48 - AMENDED TO READ: g. EIFS use is limited to top cornices, top parapets and walls, second floor and above if the application is exposed from the top. The EIFS must be hail resistant or protected. • page 49 - AMENDED TO READ: In the diagram of the ‘Roof Top Equipment Screening’ shown at the top of the page change from recommended to required. • page 50 - AMENDED TO READ: 3. Building Materials: A minimum of 85% of the front facades of residential buildings and residential building facades along Type ‘A’ street or open space shall be finished in masonry (brick, stone, stucco using the 3 step process, cast stone, or glass block). • page 51 - AMENDED TO READ: 4. b. Urban Residential facades fronting on Trophy Club Drive shall not have balconies. 4. e. Urban Residential density: two hundred fifty (250) units plus a cumulative total of up to an additional 33 urban residential units are permitted on the first floors of Buildings B4, B5, and B7 provided such additional units are Retail Ready • page 52 - AMENDED TO READ: [APPLICANT’S ALTERNATIVE] Area A and B shall be simultaneously constructed; provided, however, a Certificate of Occupancy shall not be issued for a building in Area B prior to issuance of Certificates of Occupancy, which may include “shell Certificates of Occupancy”, for 26,300 SF of the building area in Area A. • page 53 - AMENDED TO READ: a) ii. The lots (and the dwelling unit primary pedestrian entry) must front on a public street(s), vehicle access drives, pedestrian circulation areas, or public landscaped areas. • page 54 - AMENDED TO READ: e) i. 1) Front setback shall be a minimum of 10 feet, dedicated to landscaping, hardscaping, and/or driveways. f) i. A minimum of 85% of the front, side and rear façade of Townhome Residential shall be finished in masonry (brick, stone, stucco using the 3 step process, cast stone, or glass block). • page 55 - AMENDED TO READ: g) Townhome Residential garage and Parking Requirements: i. Each town home shall have a minimum of a single car garage. ii. Garages must be sized to be a minimum of ten feet (10’) by eighteen feet (18’) Town Council Page 26 of 522 Meeting Date: Monday, April 7, 2014 iii. Townhome Residential garages shall be oriented to public streets or vehicle access drives. iv. Each Townhome Residential unit requires one (1) guest parking space. The total of guest parking required for clustered Townhome Residential may be accommodated in nearby public street parking or in designated off-street parking areas dispersed throughout the Townhome Residential development. • Development Legend - AMENDED TO READ: RESIDENTIAL ROOF PEAKS AND TOWER ELEMENTS OF RESIDENTIAL 85’ MAXIMUM HEIGHT TOWNHOMES 50’ MAXIMUM HEIGHT Motion carried 5-1-0 with Council Member Rose, Council Member Shoffner, Council Member Mayer, Mayor Pro Tem Tiffany and Mayor White, voting for and Council Member Lamont, voting against. 17. Town Council Liaison Updates; discussion of same. No action taken, update only. 18. Town Manager Slye's update regarding the following; discussion of same. • Election Update • Business Meet and Greet • Dino Toddler Playground • Tom Thumb Fuel Station Update • New Facility Update Town Manager Slye updated the Council and addressed questions; no action taken, update only. 19. Mayor and Council Updates regarding training opportunities, educational sessions, and regional meetings; discussion of same. • Byron Nelson High School Talent Show - February 18th • Women in Government Luncheon - February 20th • Metroport Cities Partnership - February 20th • Emergency Preparedness Planning Council - February 20th • Northeast Tarrant Transportation Summit - February 21st • Denton County FM 1171 Ground Breaking Ceremony - February 26th • Senior Housing Summit - February 26th Mayor White and Council members updated the Council and addressed questions regarding meetings attended; no action taken, update only. 20. Consider and take appropriate action regarding CFAB Initiatives. Motion made by Council Member Rose, seconded by Council Member Mayer, to move this item to the March 17, 2014 agenda. Motion passed unanimously. 21 Items for Future Agendas. This item allows Council to request the placement of items on upcoming agendas when the topic of discussion requires research and review that cannot be accomplished in the time frame between regular Council meetings. Town Council Page 27 of 522 Meeting Date: Monday, April 7, 2014 However, a Council Member may request that an item be placed on the next regularly scheduled meeting without first placing that item on the Future Agenda Items list. All requests for agenda items must comply with Charter requirements. No changes were made to the list. EXECUTIVE SESSION 22. Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551, (the Texas Open Meetings Act) the Council will convene into closed executive session to discuss the following: (A) Section 551.087 Deliberation Regarding Economic Development Negotiations to discuss or deliberate the offer of financial or other incentives to a business prospect that the Town seeks to have locate within the territory of the Town. (1) Potential Projects in the Trophy Wood Drive area CONVENE INTO EXECUTIVE SESSION - START TIME – 12:10 a.m., Tuesday, March 4, 2014 RECONVENE INTO REGULAR SESSION - START TIME – 1:40 a.m., Tuesday, March 4, 2014 RECONVENE INTO REGULAR SESSION 23. Consider and take appropriate action regarding the Executive Session. Action taken on executive session agenda item #5: Motion made by Mayor Pro Tem Tiffany, seconded by Council Member Shoffner, in order to meet the impending deadline with TCEQ I move to authorize legal counsel, Graves, Dougherty, Hearon and Moody, to file a Motion To Overturn the TCEQ order dated February 6, 2014 to approve the MUD No 1's issuance of tax and revenue bonds, and, as part of that Motion, to request that the TCEQ order the parties to mediation. If we can reach an agreement on the terms of the contract for service to the PID, we will withdraw our motion to overturn. Motion passed unanimously. No action taken on executive session agenda item #22. ADJOURN Motion made by Council Member Rose, seconded by Council Member Lamont, to adjourn. Motion carried unanimously. Meeting adjourned at 1:50 a.m., Tuesday, March 4, 2014. ___________________________________ ___________________________________ Tammy Ard, Town Secretary Connie White, Mayor Town of Trophy Club, Texas Town of Trophy Club, Texas Town Council Page 28 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1028-T Name: Status:Type:Agenda Item Consent Agenda File created:In control:3/20/2014 Town Council On agenda:Final action:4/21/2014 Title:Consider and take appropriate action regarding the Minutes dated March 17, 2014. Attachments:TC Minutes 3-17-2014.pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding the Minutes dated March 17, 2014. Town Council Page 29 of 522 Meeting Date: Monday, April 7, 2014 MINUTES FROM REGULAR SESSION TOWN COUNCIL MEETING FOR THE TOWN OF TROPHY CLUB LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS Monday, March 17, 2014 at 5:00 P.M. Svore Municipal Building Boardroom The Town Council of the Town of Trophy Club, Texas, met in a Regular Session on Monday, March 17, 2014. The meeting was held within the boundaries of the Town and was open to the public. STATE OF TEXAS § COUNTY OF DENTON § TOWN COUNCIL MEMBERS PRESENT: Connie White Mayor Jeannette Tiffany Mayor Pro Tem, Place 2 Philip Shoffner Council Member, Place 6 Greg Lamont Council Member, Place 5 Danny Mayer Council Member, Place 4 departed 6:32 p.m. Bill Rose Council Member, Place 1 TOWN COUNCIL MEMBERS ABSENT: STAFF AND GUEST(S) PRESENT: Mike Slye Town Manager Stephen Seidel Assistant Town Manager departed 8:10 p.m. Tammy Ard Town Secretary Patricia Adams Town Attorney April Reiling PIO/Marketing Manager Scott Kniffen Police Chief Danny Thomas Fire Chief Steven Glickman Finance Director Mayor White announced the date of Monday, March 17, 2014 called the Town Council to order and announced a quorum at 5:04 p.m. WORKSHOP SESSION 1. Discussion of agenda items posted for consideration on the Regular Session Council Agenda for March 17, 2014. Council Member Shoffner requested additional back up on agenda items in the agenda. For example, it would have been helpful to have back up for agenda items 3, 5 and 15 in order to be better prepared for discussion. 2. Discussion of agenda items posted for consideration on the Regular Session Council Agenda for April 7, 2014. Council Member Shoffner requested we move the agenda item regarding the Agreement with GVT (Subcontractor of Intermedix) to provide the Town with past due ambulance collections for out-of-district customers be moved from the consent agenda to the regular session in order to discuss the agreement. In addition, requested further information regarding ambulance service and mutual aid. Town Council Page 30 of 522 Meeting Date: Monday, April 7, 2014 Council Member Shoffner requested to receive agenda items upon preparation in order for Council to have additional time to review the documents rather than when agenda packets are distributed. 3. Presentation by David Rodriguez on Vision North Texas; discussion of same. Vision North Texas is a public-private-academic partnership to increase awareness about expected growth in the region. Regional growth is expected to continue, including population and employment. Congestion around Trophy Club is low to moderate, but expected to become increasingly worse, especially without corrective action to relieve traffic congestion on major roadways, such as SH 114. 4. Presentation and update by Tom Batenhorst, GSBS Architects regarding joint facility planning; discussion of same. Tom Batenhorst, GSBS architects, provided a presentation (attached) to include a few basic layouts regarding the latest ideas and designs for the proposed joint Town Hall/Police facility. Architects evaluated various buildings in the area for design ideas and construction materials that may work for the Trophy Club facility. The architect requested input and received feedback from Council and will continue to work on possible designs and layouts per Councils directive. The property where the proposed facility would be located requires rezoning and replatting. Currently, the architect is working on designing a facility that is approximately 39,000 square feet, which includes a Town Hall, Police Station and Community meeting space. Of the approximately 39,000 square feet, approximately 10,000 square feet would be shared space between the Town Hall, Police Station and community meeting rooms. Several cost benefits were presented in regards to building a joint facility with shared space which include: saves construction time, contractor and supplier savings, more efficient building savings, shared space resulting in reduced space needs and savings from consolidated professional fees. A plaza and/or civic center could be added, if desired in the future. 5. Discuss and provide direction regarding amendments to the Town Council Rules of Procedure, Chapter 1, Article 6 of the Code of Ordinances of the Town. Staff requested clarification on a few items regarding meeting rules of procedure as discussed at a previous Council meeting. CONVENE INTO EXECUTIVE SESSION - START TIME – 6:35 p.m. 6. Pursuant to Texas Government Code, Annotated, Subchapter 551, Council will convene into closed executive session as authorized by: Section 551.087 Deliberation Regarding Economic Development Negotiations to discuss or deliberate the offer of financial or other incentives to a business prospect that the Town seeks to have locate within the territory of the Town and Section 551.071 (2) "Consultation with Attorney", for Consultation with the its attorney on a matter in which the duty of the attorney to the Governmental Body under the Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflict with the Open Meetings Act (551.071 (2)). (1) Development incentives for business prospects and development and legal advice regarding potential development, potential incentives and contractual agreements, and related matters. RECONVENE INTO REGULAR SESSION - START TIME – 8:11 p.m. Town Council Page 31 of 522 Meeting Date: Monday, April 7, 2014 RECONVENE INTO REGULAR SESSION 7. Consider and take appropriate action regarding the Executive Session. No action taken. The Invocation was offered by Chief Kniffen. The Pledges were led by Council Member Bill Rose. 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. 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 will not be a separate discussion of these items. If discussion is desired, that item will be removed from the consent agenda and will be considered separately. 8. Consider and take appropriate action regarding the Minutes dated March 11, 2014. 9. Consider and take appropriate action regarding an amendment to Chapter 1, "Administration", Article VIII, "Schedule of Fees", Section 8.11, "Police Department" to add a fee for a Home Firearms Safety Program course offered by the Police Department; providing for publication; and providing an effective date. Motion made by Council Member Rose, seconded by Mayor Pro Tem Tiffany, to approve the Consent Agenda. Motion passed unanimously. REGULAR SESSION 10. Town Council Liaison Updates; discussion of same: • Citizen Financial Advisory Board – March 10th • EDC 4B – March 10th • TIRZ Board – March 12th Town Council Liaisons provided an update addressed questions; no action taken, update only. 11. Town Manager Slye's update regarding the following; discussion of same. • Election Update • Fresh Meadow • Grass/Brush Fire Town Council Page 32 of 522 Meeting Date: Monday, April 7, 2014 Chief Thomas gave a brief overview of the Corps of Engineer Brush Fire. A total of twenty (20) local fire departments responded; Eight (8) Support Service Units; and three (3) Law Enforcement Agencies. A total of 185 acres burned. Special Thanks to: Trophy Club Emergency Services Volunteers Roanoke Fire Department CFA Volunteers Marathon Construction Company Wal-Mart Reno Reds Hard-8 Chick-Fil-A Trophy Club Country Club All the citizens Town Manager Slye updated the Council and addressed questions; no action taken, update only. 12. Mayor and Council Updates regarding training opportunities, educational sessions, and regional meetings; discussion of same. • Chamber Luncheon – March 4th • Mayor’s Round Table – March 7th • Northwest Community Partners Meeting – March 12th Mayor White and Council members updated the Council and addressed questions regarding meetings attended; no action taken, update only. 13. Consider and take appropriate action regarding financial and variance report dated February 2014. Director of Finance, Steven Glickman gave an overview of the financial and variance report for February 2014. Motion made by Council Member Rose, seconded by Mayor Pro Tem Tiffany, to approve the financial and variance report for February 2014. Motion passed unanimously. 14. Items for Future Agendas. This item allows Council to request the placement of items on upcoming agendas when the topic of discussion requires research and review that cannot be accomplished in the time frame between regular Council meetings. However, a Council Member may request that an item be placed on the next regularly scheduled meeting without first placing that item on the Future Agenda Items list. All requests for agenda items must comply with Charter requirements. No changes were made to the list. 15. Consider and take appropriate action regarding a request for an extension of time to allow two temporary trailers to remain on site at The Church at Trophy Lakes, 800 Trophy Club Drive. Applicant: Jason Lee, Associate Pastor. Town Council Page 33 of 522 Meeting Date: Monday, April 7, 2014 Applicant requested to extend the time until June 15th for the temporary trailers used as classrooms to be allowed on church property. Due to weather challenges, the church construction project has been delayed and the Certificate of Occupancy has not yet been issued. Motion made by Council Member Lamont, seconded by Council Member Shoffner, to approve the request for an extension of time to allow two (2) temporary trailers to remain on site at The Church at Trophy Lakes, 800 Trophy Club Drive until June 15, 2014. Motion passed unanimously. 16. Consider and take appropriate action to contract for services to clean up and remove all vegetation and beaver dams within the channel located East of Byron Nelson High School, from Bobcat Boulevard and northward to the future termination of the pedestrian bridge; and authorizing the Town Manager to execute all necessary documents. Beavers continue to build dams in the creek impeding drainage flow, and vegetation has grown in a manner that creates standing water and attracts unwanted wildlife behind residential homes. This item allows staff to clean out the creek, which would occur in conjunction with construction of the pedestrian bridge. The project will begin where the channel intersects Bobcat Boulevard and continue northward up to the location site of the pedestrian bridge. Once this project is done it will also substantially improve the Town’s ability to maintain this area. This project will be paid for with Storm Drainage Fee dollars. Motion made by Council Member Rose, seconded by Mayor Pro Tem Tiffany, to approve authorize the contract with Lenart Development not to exceed $19,850 for services to clean up and remove all vegetation and beaver dams within the channel located East of Byron Nelson High School, from Bobcat Boulevard and northward to the future termination of the pedestrian bridge. Motion passed unanimously. 17. Consider and take appropriate action regarding CFAB Initiatives. CFAB Chairman Mike Buck, 2401 Lilyfield Drive, addressed Council and requested more projects moving forward. Mr. Buck listed a few possible project examples for CFAB, including potential public-private partnership opportunities for the town, potential contract examination, project to further expand the strategic map, proposed debt obligation issues, etc. Staff suggested that CFAB examine the economic impact of Trophy Club Park and determine if it is a viable asset for the Trophy Club community. Motion made by Council Member Lamont, seconded by Council Member Rose, to task CFAB with looking into the feasibility of Trophy Club Park. Motion passed unanimously. EXECUTIVE SESSION 18. Pursuant to the following designated sections of the Texas Local Government Code, Annotated, Chapter 551, the Council will convene into closed executive session to discuss the following: A. To deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee; Town Secretary, Tammy Ard (6 month trial period) Town Council Page 34 of 522 Meeting Date: Monday, April 7, 2014 B. Texas Government Code Section 551.071(2). “Consultation with Attorney” to consult with its attorney on a matter in which the duty of the attorney to the Governmental Body under the Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflict with the Open Meetings Act: Water and wastewater services for PID; CCN; alternative services for the PID; legislative processes and actions; terms of representation; terms of interlocal agreement for provision of water and wastewater services; Town assets and related matters. C. Texas Government Code Section 551.087 Deliberation Regarding Economic Development Negotiations to discuss or deliberate the offer of financial or other incentives to a business prospect that the Town seeks to have locate within the territory of the Town. (1) Potential Projects in the Trophy Wood Drive area CONVENE INTO EXECUTIVE SESSION - START TIME – 9:22 p.m. RECONVENE INTO REGULAR SESSION - START TIME – 10:43 p.m. RECONVENE INTO REGULAR SESSION 19. Consider and take appropriate action regarding the Executive Session. Motion made by Council Member Rose, seconded by Mayor Pro Tem Tiffany, to remove Town Secretary, Tammy Ard from probationary status. Motion passed unanimously. No action taken on other executive session items. ADJOURN Motion made by Council Member Lamont, seconded by Council Member Rose, to adjourn. Motion carried unanimously. Meeting adjourned at 10:43 p.m. ___________________________________ ___________________________________ Tammy Ard, Town Secretary Connie White, Mayor Town of Trophy Club, Texas Town of Trophy Club, Texas Town Council Page 35 of 522 Meeting Date: Monday, April 7, 2014 POLICE DEPARTMENT AND TOWN HALL TOWN OF TROPHY CLUB PRECEDENT SITE PROGRAM SCHEMA 03.17.2014 Town Council Page 36 of 522 Meeting Date: Monday, April 7, 2014 TOWN OF TROPHY CLUB TOWN HALL AND POLICE DEPARTMENT P R E C E D E N T S T U D Y DELOITTE UNIVERSITY- Gensler MATERIALS, CONNECTION TO EXTERIOR, ANGLED ROOF, SIMPLE CIRCULATION Town Council Page 37 of 522 Meeting Date: Monday, April 7, 2014 TOWN OF TROPHY CLUB TOWN HALL AND POLICE DEPARTMENT P R E C E D E N T S T U D Y FIDELITY REGIONAL CAMPUS- SWA Group Town Council Page 38 of 522 Meeting Date: Monday, April 7, 2014 TOWN OF TROPHY CLUB TOWN HALL AND POLICE DEPARTMENT P R E C E D E N T S T U D Y f o r m WHISTLER PUBLIC LIBRARY- Hughes Condon Marler Architects LOCATION: Whistler, BC, Canada SIZE: 15,000 sf LEED: Gold Town Council Page 39 of 522 Meeting Date: Monday, April 7, 2014 main circulation private public Town Council Page 40 of 522 Meeting Date: Monday, April 7, 2014 TOWN OF TROPHY CLUB TOWN HALL AND POLICE DEPARTMENT P R E C E D E N T S T U D Y THE GREATER TEXAS HEADQUARTERS- Furman and Kiel Architects f o r m LOCATION: Bryan, Texas SIZE: 9,600 sf LEED: Gold Town Council Page 41 of 522 Meeting Date: Monday, April 7, 2014 TOWN OF TROPHY CLUB TOWN HALL AND POLICE DEPARTMENT P R E C E D E N T S T U D Y CITY HALL BRONCKHORST- atelier PRO architekten LOCATION: Netherlands SIZE: 81,000 sf Highest rating for a Netherlands LEED type scale. Town Council Page 42 of 522 Meeting Date: Monday, April 7, 2014 main circulation private public Town Council Page 43 of 522 Meeting Date: Monday, April 7, 2014 TOWN OF TROPHY CLUB TOWN HALL AND POLICE DEPARTMENT P R E C E D E N T S T U D Y T y p o l o g y FORT WORTH POLYTECHNIC HEIGHTS NEIGHBORHOOD POLICE STATION- Perkins + Will and Roth Sheppard LOCATION: Fort Worth SIZE: 30,074 sf COST: $8.9 million Town Council Page 44 of 522 Meeting Date: Monday, April 7, 2014 main circulation private public Town Council Page 45 of 522 Meeting Date: Monday, April 7, 2014 TOWN OF TROPHY CLUB TOWN HALL AND POLICE DEPARTMENT P R E C E D E N T S T U D Y m a t e r i a l d e t a i l VARYING USES OF TRADITIONAL MATERIALS Town Council Page 46 of 522 Meeting Date: Monday, April 7, 2014 TOWN OF TROPHY CLUB TOWN HALL AND POLICE DEPARTMENT P R E C E D E N T S T U D Y R e g i o n a l AUSTIN CITY HALL- ANTOINE PREDOCK ARCHITECTS ALLEN CITY HALL CEDAR HILLS WYLIE MUNICIPAL COMPLEX Town Council Page 47 of 522 Meeting Date: Monday, April 7, 2014 S I T E O B S E R V A T I O N S TOWN OF TROPHY CLUB TOWN HALL AND POLICE DEPARTMENT Latitude/Longitude:33, -97 Area: 4 sq. miles Population: 8,024 Housing Units:3,072 a r e a Town Council Page 48 of 522 Meeting Date: Monday, April 7, 2014 S I T E O B S E R V A T I O N S TOWN OF TROPHY CLUB TOWN HALL AND POLICE DEPARTMENT a r e a Town Council Page 49 of 522 Meeting Date: Monday, April 7, 2014 S I T E O B S E R V A T I O N S TOWN OF TROPHY CLUB TOWN HALL AND POLICE DEPARTMENT z o n i n g Town Council Page 50 of 522 Meeting Date: Monday, April 7, 2014 S I T E O B S E R V A T I O N S TOWN OF TROPHY CLUB TOWN HALL AND POLICE DEPARTMENT z o n i n g Town Council Page 51 of 522 Meeting Date: Monday, April 7, 2014 S I T E O B S E R V A T I O N S TOWN OF TROPHY CLUB TOWN HALL AND POLICE DEPARTMENT T H O U G H T S Town Council Page 52 of 522 Meeting Date: Monday, April 7, 2014 SCHEMA TO W N O F T R O P H Y C L U B P U B L I C S A F E T Y B U I L D I N G B TO W N H A L L 12 , 6 0 0 S F UP P E R L E V E L PU B L I C S A F E T Y B E L O W 12 , 6 0 0 S F 60 ’ X 2 1 0 ’ 13 5 S T A L L S 10 S T A L L S 5 4 S T A L L S 60’ TH 2 FL O O R S 14 , 5 0 0 S F CO U N C I L 4, 4 0 0 S F FU T CC To w n C o u n c i l Pa g e 5 3 o f 5 2 2 Me e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 VI E W F R O M T H E S O U T H W E S T VI E W F R O M T H E N O R T H W E S T To w n C o u n c i l Pa g e 5 4 o f 5 2 2 Me e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 VI E W F R O M T H E S O U T H W E S T VI E W F R O M T H E N O R T H W E S T To w n C o u n c i l Pa g e 5 5 o f 5 2 2 Me e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 S C H E M A TOWN OF TROPHY CLUB TOWN HALL AND POLICE DEPARTMENT C TOWN HALL TWO FLOORS 20,000 SF POLICE DEPARTMENT 12,600 SF 60’X210’ 135 STALLS 30 SECURE STALLS 60’ COUNCIL 4,400 SF FUT CC SHARED EXERCISE Town Council Page 56 of 522 Meeting Date: Monday, April 7, 2014 VIEW FROM THE SOUTH WEST VIEW FROM THE NORTH WEST Town Council Page 57 of 522 Meeting Date: Monday, April 7, 2014 S C H E M A TOWN OF TROPHY CLUB TOWN HALL AND POLICE DEPARTMENT 0’5’10’ north Town Council Page 58 of 522 Meeting Date: Monday, April 7, 2014 S C H E M A TOWN OF TROPHY CLUB TOWN HALL AND POLICE DEPARTMENT EOC PROPERTY AND EVIDENCE COMMUNITY CLASSROOM BUILDING SUPPORTCOMMUNITY DEVELOPMENTCOMMUNITY DEVELOPMENT RECPTIONIST/ FINANCE AND COURTS PUBLIC INTERFACE VERTCIRCULATIONCOMMUNITY COUNCIL VERT CIRC BUILDING SUPPORT PATROL CID EXERCISE/ LOCKER ROOMS STORAGE ADMINISTRATION RECORDS SUPERVISED ENTRY SUPERVISED ENTRY SUPERVISED ENTRY SALLY PORT SECURE EMPLOYEE ENTRY SECURE EMPLOYEE ENTRY SECURE EMPLOYEE ENTRY SECURE ENTRY SECURE EMPLOYEE ENTRY SHARED SPACES: RESTROOM AND BREAK ROOM 0’5’10’ north Town Council Page 59 of 522 Meeting Date: Monday, April 7, 2014 S C H E M A TOWN OF TROPHY CLUB TOWN HALL AND POLICE DEPARTMENT EOC PROPERTY AND EVIDENCE COMMUNITY CLASSROOM BUILDING SUPPORTCOMMUNITY DEVELOPMENT COMMUNITY DEVELOPMENT RECPTIONIST/ FINANCE AND COURTS PUBLIC INTERFACE VERT CIRCULATION COMMUNITY COUNCIL VERT CIRC BUILDING SUPPORT PATROL CID EXERCISE/ LOCKER ROOMS STORAGE ADMINISTRATION RECORDS SUPERVISED ENTRY SUPERVISED ENTRY SUPERVISED ENTRY SALLY PORT SECURE EMPLOYEE ENTRY SECURE EMPLOYEE ENTRY SECURE EMPLOYEE ENTRY SECURE ENTRY SECURE EMPLOYEE ENTRY SHARED SPACES: RESTROOM AND BREAK ROOM 0’5’10’ north EOC PROPERTY AND EVIDENCE COMMUNITY CLASSROOM BUILDING SUPPORTCOMMUNITY DEVELOPMENTCOMMUNITY DEVELOPMENT RECPTIONIST/ FINANCE AND COURTS PUBLIC INTERFACE VERTCIRCULATIONCOMMUNITY COUNCIL VERT CIRC BUILDING SUPPORT PATROL CID EXERCISE/ LOCKER ROOMS STORAGE ADMINISTRATION RECORDS SUPERVISED ENTRY SUPERVISED ENTRY SUPERVISED ENTRY SALLY PORT SECURE EMPLOYEE ENTRY SECURE EMPLOYEE ENTRY SECURE EMPLOYEE ENTRY SECURE ENTRY SECURE EMPLOYEE ENTRY SHARED SPACES: RESTROOM AND BREAK ROOM 0’5’10’ north Town Council Page 60 of 522 Meeting Date: Monday, April 7, 2014 S C H E M A TOWN OF TROPHY CLUB TOWN HALL AND POLICE DEPARTMENT ADMINISTRATION ADMINISTRATION INFORMATION TECHNOLOGY FINANCE AND COURTS VERT CIRCULATION VERT CIRC BUILDING SUPPORT STORAGE SHARED SPACES: RESTROOM AND MEETING ROOM 0’5’10’ north GALLERY BELOW Town Council Page 61 of 522 Meeting Date: Monday, April 7, 2014 S C H E M A TOWN OF TROPHY CLUB TOWN HALL AND POLICE DEPARTMENT ADMINISTRATION ADMINISTRATION INFORMATION TECHNOLOGY FINANCE AND COURTS VERT CIRCULATION VERT CIRC BUILDING SUPPORT STORAGE SHARED SPACES: RESTROOM AND MEETING ROOM 0’5’10’ north GALLERY BELOW EOC PROPERTY AND EVIDENCE COMMUNITY CLASSROOM BUILDING SUPPORTCOMMUNITY DEVELOPMENTCOMMUNITY DEVELOPMENT RECPTIONIST/ FINANCE AND COURTS PUBLIC INTERFACE VERTCIRCULATIONCOMMUNITY COUNCIL VERT CIRC BUILDING SUPPORT PATROL CID EXERCISE/ LOCKER ROOMS STORAGE ADMINISTRATION RECORDS SUPERVISED ENTRY SUPERVISED ENTRY SUPERVISED ENTRY SALLY PORT SECURE EMPLOYEE ENTRY SECURE EMPLOYEE ENTRY SECURE EMPLOYEE ENTRY SECURE ENTRY SECURE EMPLOYEE ENTRY SHARED SPACES: RESTROOM AND BREAK ROOM 0’5’10’ north Town Council Page 62 of 522 Meeting Date: Monday, April 7, 2014 SCHEMA TO W N O F T R O P H Y C L U B T O W N H A L L A N D P O L I C E D E P A R T M E N T Po l i c e D e p a r t m e n t To w n H a l l Co u n c i l C h a m b e r s gr e e n r o o f Po l i c e D e p a r t m e n t To w n H a l l Co u n c i l C h a m b e r s gr e e n r o o f fo r m a l r h y t h m tr a d i t i o n a l r oof f orm To w n C o u n c i l Pa g e 6 3 o f 5 2 2 Me e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 SCHEMA TO W N O F T R O P H Y C L U B T O W N H A L L A N D P O L I C E D E P A R T M E N T Po l i c e D e p a r t m e n t To w n H a l l Co u n c i l C h a m b e r s ga l l e r y / c o n n e c t i o n t o g o l f c o u r s e gr e e n r o o f Po l i c e D e p a r t m e n t To w n H a l l Co u n c i l C h a m b e r s ga l l e r y / c o n n e c t i o n t o g o l f c o u r s e gr e e n r o o f em p h a s i s o n c o n n e c t i o n co n t ex t u a l f o r m To w n 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E . - A C O M B I N E D P R O J E C T B E N E F I T S F R O M S H A R E D S P A C E S . - U T I L I T Y S P A C E 8 0 0 S F - B R E A K R O O M 3 5 0 S F - E X E R C I S E R O O M 1 3 6 0 S F - V E S T I B U L E A N D L O B B Y 2 0 0 0 S F - P U B L I C T O I L E T S 6 8 0 S F - C O M M U N I T Y / T R A I N I N G R O O M S 2 9 0 0 S F - E M E R G E N C Y O P E R A T I O N S C E N T E R 1 2 7 5 S F - A C O M B I N E D P R O J E C T S A V E S P R O F E S S I O N A L F E E S . - C I V I L E N G I N E E R I N G - L E E D D E S I G N - T E S T I N G S E R V I C E S - F F & E TO W N O F T R O P H Y C L U B T O W N H A L L A N D P O L I C E D E P A R T M E N T To w n C o u n c i l Pa g e 6 7 o f 5 2 2 Me e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1068-T Name: Status:Type:Agenda Item Consent Agenda File created:In control:3/25/2014 Town Council On agenda:Final action:4/7/2014 Title:Consider and take appropriate action regarding the Minutes dated March 19, 2014. Attachments:TC Minutes 3-19-2014.pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding the Minutes dated March 19, 2014. Town Council Page 68 of 522 Meeting Date: Monday, April 7, 2014 MINUTES FROM SPECIAL SESSION JOINT MEETING TOWN OF TROPHY CLUB AND TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 BOARD OF DIRECTORS LOCATION: 500 TROPHY CLUB DRIVE, TROPHY CLUB, TEXAS Wednesday, March 19, 2014 at 4:00 P.M. TROPHY CLUB COUNTRY CLUB The Town Council of the Town of Trophy Club, Texas, and the Board of Directors of Trophy Club Municipal Utility District No. 1, of Denton & Tarrant Counties met in a Special Joint Session on Wednesday, March 19, 2014. The meeting was held within the boundaries of the Town and was open to the public. STATE OF TEXAS § COUNTY OF DENTON § COUNTY OF TARRANT § TOWN COUNCIL MEMBERS PRESENT: Connie White Mayor Jeannette Tiffany Mayor Pro Tem, Place 2 Philip Shoffner Council Member, Place 6 Greg Lamont Council Member, Place 5 Danny Mayer Council Member, Place 4 Bill Rose Council Member, Place 1 TOWN STAFF AND GUEST(S) PRESENT: Mike Slye Town Manager Tammy Ard Town Secretary Patricia Adams Town Attorney Robin Melvin Legal Counsel Mike Pastor Director of Information Technology Steve Zieverink Network Support Specialist TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 BOARD MEMBERS PRESENT: Jim Moss President Bill Armstrong Vice President Kevin Carr Secretary/Treasurer Jim Thomas Director Nick Sanders Director TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 STAFF PRESENT: Jennifer McKnight District Manager Laurie Slaght District Secretary Pam Liston District Legal Counsel Tony Corbett District Legal Counsel Mayor White announced the date of Wednesday, March 19, 2014 called the Town Council to order and announced a quorum at 4:11 p.m. CONVENE INTO JOINT SESSION - START TIME – 4:11 P.M. The Invocation was offered by Mayor Pro Tem Tiffany. The Pledges were led by Mayor Pro Tem Tiffany. Town Council Page 69 of 522 Meeting Date: Monday, April 7, 2014 1. Consider and take appropriate action regarding a potential Interlocal Agreement with the Trophy Club Municipal Utility District No. 1 to provide for water and wastewater services to customers within the Town of Trophy Club Public Improvement District, including; a. Terms of Agreement; and b. Schedule for preparation and execution of Agreement. Director Nick Sanders presented the attached presentation and assisted in facilitating the discussion for the terms of the agreement while going through the presentation. Agreement was made on all terms of the agreement and a joint meeting will be set up to execute the agreement. ADJOURN Motion made by Council Member Rose, seconded by Council Member Mayer to adjourn. Motion carried unanimously. Meeting adjourned at 5:36 p.m. ___________________________________ ___________________________________ Tammy Ard, Town Secretary Connie White, Mayor Town of Trophy Club, Texas Town of Trophy Club, Texas Town Council Page 70 of 522 Meeting Date: Monday, April 7, 2014 Things to agree upon for this meeting:  Don’t interrupt any speaker  Be recognized by Chair(s) before speaking  Stay on point, and be brief  No re-hash of past events – focus on moving forward  Treat everyone with the respect you would like to receive 1 Town Council Page 71 of 522 Meeting Date: Monday, April 7, 2014 Things we can build upon:  Everyone wants the best for all citizens and customers  Keeping MUD and PID water & sewer rates equal is primary  Achieving a win-win Agreement for all citizens of Trophy Club 2 Town Council Page 72 of 522 Meeting Date: Monday, April 7, 2014 Where we are on the agreement(s): 1.Wholesale service: MUD sells to Town and Town is utility provider to PID 2.Term of contract(s) will be analogous with bond life 3.Capital improvements paid by tax bonds (MUD) will be paid by Town through “surcharge” or “assessment” to PID residents. a. Surcharge/Assessment will be based on taxable property values b. If Surcharge – will be on monthly bills sent my MUD 4.In recognition of the PID customer’s prior payment of $2300 utility fees, the MUD’s existing debt service would be excluded from the surcharge 5.MUD will operate Town utility systems (water and wastewater) and provide the same level of service to Town customers as those within the MUD 6.MUD will allow interest earned on Utility Fee’s to offset shortage of utility fees because the reduction of number of permits due to final platting (1417 reduced to 1407 permits in PID) 7.Should annexation of the PID into the MUD occur, surcharges would be eliminated and a new contract would be required 3 Town Council Page 73 of 522 Meeting Date: Monday, April 7, 2014 Items to Finalize 1.Will there be one contract for wholesale service and operational services, or separate contracts for each? 2.If separate contracts, can it be agreed that Operations Contract must run the same term as wholesale agreement with no ability to terminate either contract “without default” by a party. 3.What will be the requirement(s) for notification to the Town of a capital improvement using revenue bonds? 4 Town Council Page 74 of 522 Meeting Date: Monday, April 7, 2014 Items to Finalize – Continued 2 4.What will be the requirement(s) for notification to the Town of a capital improvement using tax bonds? How would you like to handle future communication between Council & Board as related to Service Matters, Capital Improvements, Levels of Service and Rates? The MUD Board or MUD District Manager would make at least quarterly (or as needed) presentations to the Council regarding service matters, capital improvements, levels of service, rates and/or operations. 5.Will MUD agree to be solely responsible for all maintenance and future improvements? a. If yes, will Town agree MUD must have final decision on needed upgrades for complete system (includes MUD and Town systems)? 5 Town Council Page 75 of 522 Meeting Date: Monday, April 7, 2014 Items to Finalize – Continued 3 6.What will be the requirement(s) in the agreement for Town rate setting to ensure surcharges / assessments are in place? a. If yes, will Town agree that unless the PID is annexed into the MUD, the MUD will provide notice of increase to surcharge/assessment and Town will assess new surcharge / assessment? b. If yes, when will notification occur (start of fiscal year, at time bonds issued, etc.). 6 Town Council Page 76 of 522 Meeting Date: Monday, April 7, 2014 Schedule for Finalization and execution of Agreement . 7 Town Council Page 77 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1071-T Name: Status:Type:Agenda Item Consent Agenda File created:In control:3/28/2014 Town Council On agenda:Final action: Title:Consider and take appropriate action regarding an interlocal Joint Election Agreement between the Town and Tarrant County for administration of the May, 2014 Town election; and authorizing the Mayor or her designee to execute all necessary documents. Attachments:DRAFT Tarrant County Joint Elections Contract.pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding an interlocal Joint Election Agreement between the Town and Tarrant County for administration of the May, 2014 Town election; and authorizing the Mayor or her designee to execute all necessary documents. Town Council Page 78 of 522 Meeting Date: Monday, April 7, 2014 Page 1 of 10 THE STATE OF TEXAS COUNTY OF TARRANT JOINT ELECTION AGREEMENT AND CONTRACT FOR ELECTION SERVICES THIS CONTRACT for election services is made by and between the Tarrant County Elections Administrator and the following political subdivisions located entirely or partially inside the boundaries of Tarrant County: City of Arlington City of Bedford City of Colleyville City of Crowley City of Dalworthington Gardens Town of Edgecliff Village City of Euless City of Forest Hill City of Fort Worth City of Grand Prairie City of Grapevine City of Haltom City City of Haslet City of Hurst City of Keller City of Mansfield City of Pelican Bay City of Richland Hills City of River Oaks City of Saginaw City of Sansom Park City of Southlake Town of Trophy Club City of Watauga Town of Westover Hills Arlington ISD Azle ISD Crowley ISD Eagle Mountain-Saginaw ISD Grapevine-Colleyville ISD Keller ISD Lewisville ISD Mansfield ISD Northwest ISD Trophy Club MUD 1 This contract is made pursuant to Texas Election Code Sections 31.092 and 271.002 and Texas Education Code Section 11.0581 for a joint May 10, 2014 election to be administered by Stephen Vickers, Chief Deputy Elections Administrator Acting pursuant to Texas Government Code § 601.002, hereinafter referred to as “Elections Administrator.” RECITALS Each participating authority listed above plans to hold a general and/or special election on May 10, 2014. The County owns an electronic voting system, the Hart InterCivic eSlate/eScan Voting System (Version 6.2.1), which has been duly approved by the Secretary of State pursuant to Texas Election Code Chapter 122 as amended, and is compliant with the accessibility requirements for persons with disabilities set forth by Texas Election Code Section 61.012. The contracting political subdivisions desire to use the County’s electronic voting system and to compensate the County for such use and to share in certain other expenses connected with joint elections in accordance with the applicable provisions of Chapters 31 and 271 of the Texas Election Code, as amended. NOW THEREFORE, in consideration of the mutual covenants, agreements, and benefits to the parties, IT IS AGREED as follows: Town Council Page 79 of 522 Meeting Date: Monday, April 7, 2014 Page 2 of 10 I. ADMINISTRATION The parties agree to hold a “Joint Election” with each other in accordance with Chapter 271 of the Texas Election Code and this agreement. The Tarrant County Elections Administrator shall coordinate, supervise, and handle all aspects of administering the Joint Election as provided in this agreement. Each participating authority agrees to pay the Tarrant County Elections Administrator for equipment, supplies, services, and administrative costs as provided in this agreement. The Tarrant County Elections Administrator shall serve as the administrator for the Joint Election; however, each participating authority shall remain responsible for the decisions and actions of its officers necessary for the lawful conduct of its election. The Elections Administrator shall provide advisory services in connection with decisions to be made and actions to be taken by the officers of each participating authority as necessary. It is understood that other political subdivisions may wish to participate in the use of the County’s electronic voting system and polling places, and it is agreed that the Elections Administrator may enter into other contracts for election services for those purposes on terms and conditions generally similar to those set forth in this contract. In such cases, costs shall be pro-rated among the participants according to Section XI of this contract. At each polling location, joint participants shall share voting equipment and supplies to the extent possible. The participating parties shall share a mutual ballot in those polling places where jurisdictions overlap. However, in no instance shall a voter be permitted to receive a ballot containing an office or proposition stating a measure on which the voter is ineligible to vote. Multiple ballot styles shall be available in those shared polling places where jurisdictions do not overlap. II. LEGAL DOCUMENTS Each participating authority shall be responsible for the preparation, adoption, and publication of all required election orders, resolutions, notices, and any other pertinent documents required by the Texas Election Code and/or the participating authority’s governing body, charter, or ordinances, except that the Elections Administrator shall be responsible for the preparation and publication of all voting system testing notices that are required by the Texas Election Code. Preparation of the necessary materials for notices and the official ballot shall be the responsibility of each participating authority, including translation to languages other than English. Each participating authority shall provide a copy of their respective election orders and notices to the Tarrant County Elections Administrator. III. VOTING LOCATIONS The Elections Administrator shall select and arrange for the use of and payment for all election day voting locations. Voting locations will be, whenever possible, the usual voting location for each election precinct in elections conducted by each participating city, and shall be compliant with the accessibility requirements established by Election Code Section 43.034 and the Americans with Disabilities Act (ADA). The proposed voting locations are listed in Attachment A of this agreement. In the event that a voting location is not available or appropriate, the Elections Administrator will arrange for use of an alternate location with the approval of the affected participating authorities. The Elections Administrator shall notify the participating authorities of any changes from the locations listed in Attachment A. If polling places for the May 10, 2014 joint election are different from the polling place(s) used by a participating authority in its most recent election, the authority agrees to post a notice no later than May 9, 2014 at the entrance to any previous polling places in the jurisdiction stating that the polling location has changed and stating the political subdivision’s polling place names and addresses in effect for the May 10, 2014 election. This notice shall be written in both the English and Spanish languages. Town Council Page 80 of 522 Meeting Date: Monday, April 7, 2014 Page 3 of 10 IV. ELECTION JUDGES, CLERKS, AND OTHER ELECTION PERSONNEL Tarrant County shall be responsible for the appointment of the presiding judge and alternate judge for each polling location. The Elections Administrator shall make emergency appointments of election officials if necessary. Upon request by the Elections Administrator, each participating authority agrees to assist in recruiting polling place officials who are bilingual (fluent in both English and Spanish). In compliance with the Federal Voting Rights Act of 1965, as amended, each polling place containing more than 5% Hispanic population as determined by the 2010 Census shall have one or more election official who is fluent in both the English and Spanish languages. If a presiding judge is not bilingual, and is unable to appoint a bilingual clerk, the Elections Administrator may recommend a bilingual worker for the polling place. If the Elections Administrator is unable to recommend or recruit a bilingual worker, the participating authority or authorities served by that polling place shall be responsible for recruiting a bilingual worker for translation services at that polling place. The Elections Administrator shall notify all election judges of the eligibility requirements of Subchapter C of Chapter 32 of the Texas Election Code, and will take the necessary steps to insure that all election judges appointed for the Joint Election are eligible to serve. The Elections Administrator shall arrange for the training and compensation of all election judges and clerks. The Elections Administrator shall arrange for the date, time, and place for presiding election judges to pick up their election supplies. Each presiding election judge will be sent a letter from the Elections Administrator notifying him of his appointment, the time and location of training and distribution of election supplies, and the number of election clerks that the presiding judge may appoint. Each election judge and clerk will receive compensation at the hourly rate established by Tarrant County pursuant to Texas Election Code Section 32.091. The election judge will receive an additional sum of $25.00 for picking up the election supplies prior to election day and for returning the supplies and equipment to the central counting station after the polls close. Election judges and clerks who attend voting equipment training and/or procedures training shall be compensated at the same hourly rate that they are to be paid on election day. The Elections Administrator may employ other personnel necessary for the proper administration of the election, including such part-time help as is necessary to prepare for the election, to ensure the timely delivery of supplies during early voting and on election day, and for the efficient tabulation of ballots at the central counting station. Part-time personnel working as members of the Early Voting Ballot Board and/or central counting station on election night will be compensated at the hourly rate set by Tarrant County in accordance with Election Code Sections 87.005, 127.004, and 127.006. V. PREPARATION OF SUPPLIES AND VOTING EQUIPMENT The Elections Administrator shall arrange for all election supplies and voting equipment including, but not limited to, official ballots, sample ballots, voter registration lists, and all forms, signs, maps and other materials used by the election judges at the voting locations. The Elections Administrator shall ensure availability of tables and chairs at each polling place and shall procure rented tables and chairs for those polling places that do not have tables and/or chairs. At each polling location, joint participants shall share voting equipment and supplies to the extent possible. The participating parties shall share a mutual ballot in those precincts where jurisdictions overlap. However, in no instance shall a voter be permitted to receive a ballot containing an office or proposition stating a measure on which the voter is ineligible to vote. Multiple ballot styles shall be available in those shared polling places where jurisdictions do not overlap. The Elections Administrator shall provide the necessary voter registration information, maps, instructions, and other information needed to enable the election judges in the voting locations that have more than one ballot style to conduct a proper election. Town Council Page 81 of 522 Meeting Date: Monday, April 7, 2014 Page 4 of 10 Each participating authority shall furnish the Elections Administrator a list of candidates and/or propositions showing the order and the exact manner in which the candidate names and/or proposition(s) are to appear on the official ballot (including titles and text in each language in which the authority’s ballot is to be printed). Each participating authority shall be responsible for proofreading and approving the ballot insofar as it pertains to that authority’s candidates and/or propositions. The joint election ballots that contain ballot content for more than one joint participant because of overlapping territory shall be arranged in the following order: Independent School District, City, Water District(s), College District, and other political subdivisions. Early Voting by Personal Appearance shall be conducted exclusively on Tarrant County’s eSlate electronic voting system. On election day, voters shall have a choice between voting on the eSlate electronic voting system or by a paper ballot that is scanned at the polling place using Tarrant County’s eScan voting system. Provisional ballots cast on election day will be cast only on the eSlate electronic voting system to prevent the possibility of paper provisional ballots from being immediately counted via the eScan ballot scanner. The number of paper ballots printed for election day voting shall be, at a minimum, equal to the same election day turnout as in the last comparable election plus 25 percent of that number, with the final number of ballots ordered per polling place or precinct adjusted upward to end in a number divisible by 50. The Elections Administrator shall be responsible for the preparation, testing, and delivery of the voting equipment for the election as required by the Election Code. The Elections Administrator shall conduct criminal background checks on relevant employees upon hiring as required by Election Code Section 129.051(g). VI. EARLY VOTING The participating authorities agree to conduct joint early voting and to appoint the Election Administrator as the Early Voting Clerk in accordance with Sections 31.097 and 271.006 of the Texas Election Code. Each participating authority agrees to appoint the Elections Administrator’s permanent county employees as deputy early voting clerks. The participating authorities further agree that the Elections Administrator may appoint other deputy early voting clerks to assist in the conduct of early voting as necessary, and that these additional deputy early voting clerks shall be compensated at an hourly rate set by Tarrant County pursuant to Section 83.052 of the Texas Election Code. Deputy early voting clerks who are permanent employees of the Tarrant County Elections Administrator or any participating authority shall serve in that capacity without additional compensation. Early Voting by personal appearance will be held at the locations, dates, and times listed in Attachment “B” of this document. Any qualified voter of the Joint Election may vote early by personal appearance at any of the joint early voting locations. As Early Voting Clerk, the Elections Administrator shall receive applications for early voting ballots to be voted by mail in accordance with Chapters 31 and 86 of the Texas Election Code. Any requests for early voting ballots to be voted by mail received by the participating authorities shall be forwarded immediately by fax or courier to the Elections Administrator for processing. The Elections Administrator shall post on the county website each participating authority’s early voting report on a daily basis and a cumulative final early voting report following the close of early voting. In accordance with Section 87.121(g) of the Election Code, the daily reports showing the previous day’s early voting activity will be posted to the county website no later than 8:00 AM each business day. Town Council Page 82 of 522 Meeting Date: Monday, April 7, 2014 Page 5 of 10 VII. EARLY VOTING BALLOT BOARD AND SIGNATURE VERIFICATION COMMITTEE Tarrant County shall appoint an Early Voting Ballot Board (EVBB) to process early voting results from the Joint Election. The Presiding Judge, with the assistance of the Elections Administrator, shall appoint two or more additional members to constitute the EVBB. The Elections Administrator shall determine the number of EVBB members required to efficiently process the early voting ballots. The Elections Administrator shall determine whether a Signature Verification Committee is necessary, and if so, shall appoint the members. VIII. CENTRAL COUNTING STATION AND ELECTION RETURNS The Elections Administrator shall be responsible for establishing and operating the central and remote counting stations to receive and tabulate the voted ballots in accordance with the provisions of the Texas Election Code and of this agreement. The participating authorities hereby, in accordance with Section 127.002, 127.003, and 127.005 of the Texas Election Code, appoint the following central counting station officials: Counting Station Manager: Stephen Vickers, Chief Deputy Elections Administrator Tabulation Supervisor: Eric Leija, Tarrant County Elections Operations Manager Presiding Judge: George Keyes Alternate Judge: Emma Allen The counting station manager or his representative shall deliver timely cumulative reports of the election results as precincts report to the central and remote counting stations and are tabulated. The manager shall be responsible for releasing unofficial cumulative totals and precinct returns from the election to the joint participants, candidates, press, and general public by distribution of hard copies at the central counting station and by posting to the Tarrant County web site. To ensure the accuracy of reported election returns, results printed on the tapes produced by Tarrant County’s voting equipment will not be released to the participating authorities at the remote collection sites or by phone from individual polling locations. The Elections Administrator will prepare the unofficial canvass reports that are necessary for compliance with Election Code Section 67.004 after all precincts have been counted, and will deliver a copy of these unofficial canvass reports to each participating authority as soon as possible after all returns have been tabulated. Each participating authority shall be responsible for the official canvass of its respective election(s). The Elections Administrator will prepare the electronic precinct-by-precinct results reports for uploading to the Secretary of State as required by Section 67.017 of the Election Code. The Elections Administrator agrees to upload these reports for each participating authority unless requested otherwise. The Elections Administrator shall be responsible for conducting the post-election manual recount required by Section 127.201 of the Texas Election Code unless a waiver is granted by the Secretary of State. Notification and copies of the recount, if waiver is denied, will be provided to each participating authority and the Secretary of State’s Office. IX. PARTICIPATING AUTHORITIES WITH TERRITORY OUTSIDE TARRANT COUNTY Each participating authority with territory containing population outside Tarrant County agrees that the Elections Administrator shall administer only the Tarrant County portion of those elections. Town Council Page 83 of 522 Meeting Date: Monday, April 7, 2014 Page 6 of 10 X. RUNOFF ELECTIONS Each participating authority shall have the option of extending the terms of this agreement through its runoff election, if applicable. In the event of such runoff election, the terms of this agreement shall automatically extend unless the participating authority notifies the Elections Administrator in writing within 3 business days of the original election. Each participating authority shall reserve the right to reduce the number of early voting locations and/or election day voting locations in a runoff election. If necessary, any voting changes made by a participating authority between the original election and the runoff election shall be submitted by the authority making the change to the United States Department of Justice for the preclearance required by the Federal Voting Rights Act of 1965, as amended. Each participating authority agrees to order any runoff election(s) at its meeting for canvassing the votes from the May 10, 2014 election and to conduct its drawing for ballot positions at or immediately following such meeting in order to expedite preparations for its runoff election. Each participating authority eligible to hold runoff elections agrees that the date of the runoff election, if necessary, shall be Saturday, June 21, 2014. XI. ELECTION EXPENSES AND ALLOCATION OF COSTS The participating authorities agree to share the costs of administering the Joint Election. Allocation of costs, unless specifically stated otherwise, is mutually agreed to be shared according to a formula which is based on the average cost per election day polling place (unit cost) as determined by adding together the overall expenses and dividing the expenses equally among the total number of polling places. Costs for polling places shared by more than one participating authority shall be pro-rated equally among the participants utilizing that polling place. It is agreed that charges for election day judges and clerks and election day polling place rental fees shall be directly charged to the appropriate participating authority rather than averaging those costs among all participants. If a participating authority’s election is conducted at more than one election day polling place, there shall be no charges or fees allocated to the participating authority for the cost of election day polling places in which the authority has fewer than 50% of the total registered voters served by that polling place, except that if the number of registered voters in all of the authority’s polling places is less than the 50% threshold, the participating authority shall pay a pro-rata share of the costs associated with the polling place where it has the greatest number of registered voters. Costs for Early Voting by Personal Appearance shall be allocated based upon the actual costs associated with each early voting site. Each participating authority shall be responsible for a pro-rata portion of the actual costs associated with the early voting sites located within their jurisdiction. Participating authorities that do not have a regular (non- temporary) early voting site within their jurisdiction shall pay a pro-rata portion of the nearest regular early voting site. Costs for Early Voting by Mail shall be allocated according to the actual number of ballots mailed to each participating authority’s voters. Participating authorities having the majority of their voters in another county, and fewer than 500 registered voters in Tarrant County, and that do not have an election day polling place or early voting site within their jurisdiction shall pay a flat fee of $400 for election expenses. Each participating authority agrees to pay the Tarrant County Elections Administrator an administrative fee equal to ten percent (10%) of its total billable costs in accordance with Section 31.100(d) of the Texas Election Code. The Tarrant County Elections Administrator shall deposit all funds payable under this contract into the appropriate fund(s) within the county treasury in accordance with Election Code Section 31.100. Town Council Page 84 of 522 Meeting Date: Monday, April 7, 2014 Page 7 of 10 XII. WITHDRAWAL FROM CONTRACT DUE TO CANCELLATION OF ELECTION Any participating authority may withdraw from this agreement and the Joint Election should it cancel its election in accordance with Sections 2.051 - 2.053 of the Texas Election Code. The withdrawing authority is fully liable for any expenses incurred by the Tarrant County Elections Administrator on behalf of the authority plus an administrative fee of ten percent (10%) of such expenses. Any monies deposited with the Elections Administrator by the withdrawing authority shall be refunded, minus the aforementioned expenses and administrative fee if applicable. It is agreed that any of the joint election early voting sites that are not within the boundaries of one or more of the remaining participating authorities, with the exception of the early voting site located at the Tarrant County Elections Center, may be dropped from the joint election unless one or more of the remaining participating authorities agree to fully fund such site(s). In the event that any early voting site is eliminated under this section, an addendum to the contract shall be provided to the remaining participants within five days after notification of all intents to withdraw have been received by the Elections Administrator. XIII. RECORDS OF THE ELECTION The Elections Administrator is hereby appointed general custodian of the voted ballots and all records of the Joint Election as authorized by Section 271.010 of the Texas Election Code. Access to the election records shall be available to each participating authority as well as to the public in accordance with applicable provisions of the Texas Election Code and the Texas Public Information Act. The election records shall be stored at the offices of the Elections Administrator or at an alternate facility used for storage of county records. The Elections Administrator shall ensure that the records are maintained in an orderly manner so that the records are clearly identifiable and retrievable. Records of the election shall be retained and disposed of in accordance with the provisions of Section 66.058 of the Texas Election Code. If records of the election are involved in any pending election contest, investigation, litigation, or open records request, the Elections Administrator shall maintain the records until final resolution or until final judgment, whichever is applicable. It is the responsibility of each participating authority to bring to the attention of the Elections Administrator any notice of pending election contest, investigation, litigation or open records request which may be filed with the participating authority. XIV. RECOUNTS A recount may be obtained as provided by Title 13 of the Texas Election Code. By signing this document, the presiding officer of the contracting participating authority agrees that any recount shall take place at the offices of the Elections Administrator, and that the Elections Administrator shall serve as Recount Supervisor and the participating authority’s official or employee who performs the duties of a secretary under the Texas Election Code shall serve as Recount Coordinator. The Elections Administrator agrees to provide advisory services to each participating authority as necessary to conduct a proper recount. XV. MISCELLANEOUS PROVISIONS 1. It is understood that to the extent space is available, other districts and political subdivisions may wish to participate in the use of the County’s election equipment and voting places, and it is agreed that the Elections Administrator may contract with such other districts or political subdivisions for such purposes and that in such event there may be an adjustment of the pro-rata share to be paid to the County by the participating authorities. Town Council Page 85 of 522 Meeting Date: Monday, April 7, 2014 Page 8 of 10 2. The Elections Administrator shall file copies of this document with the Tarrant County Judge and the Tarrant County Auditor in accordance with Section 31.099 of the Texas Election Code. 3. Nothing in this contract prevents any party from taking appropriate legal action against any other party and/or other election personnel for a breach of this contract or a violation of the Texas Election Code. 4. This agreement shall be construed under and in accord with the laws of the State of Texas, and all obligations of the parties created hereunder are performable in Tarrant County, Texas. 5. In the event that one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision hereof and this agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. 6. All parties shall comply with all applicable laws, ordinances, and codes of the State of Texas, all local governments, and any other entities with local jurisdiction. 7. The waiver by any party of a breach of any provision of this agreement shall not operate as or be construed as a waiver of any subsequent breach. 8. Any amendments of this agreement shall be of no effect unless in writing and signed by all parties hereto. XVI. COST ESTIMATES AND DEPOSIT OF FUNDS The total estimated obligation for each participating authority under the terms of this agreement is listed below. Each participating authority agrees to pay the Tarrant County Elections Administrator a deposit of approximately 75% of this estimated obligation within 15 days after execution of this agreement. The exact amount of each participating authority’s obligation under the terms of this agreement shall be calculated after the May 10, 2014 election (or runoff election, if applicable), and if the amount of an authority’s total obligation exceeds the amount deposited, the authority shall pay to the Elections Administrator the balance due within 30 days after the receipt of the final invoice from the Elections Administrator. However, if the amount of the authority’s total obligation is less than the amount deposited, the Elections Administrator shall refund to the authority the excess amount paid within 30 days after the final costs are calculated. The total estimated obligation and required deposit for each participating authority under the terms of this agreement shall be as follows: Town Council Page 86 of 522 Meeting Date: Monday, April 7, 2014 Page 9 of 10 Actual # Billed # Estimated Deposit Political Subdivision Polls Polls Cost Due City of Arlington 28 14.00 $62,231 $46,700 City of Bedford 1 1.00 $13,619 $10,300 City of Colleyville 1 0.50 $5,444 $4,100 City of Crowley 1 0.50 $5,032 $3,800 City of Dalworthington Gardens 1 0.50 $4,205 $3,200 City of Edgecliff Village 1 0.50 $5,037 $3,800 City of Euless 1 1.00 $10,895 $8,200 City of Forest Hill 1 1.00 $10,273 $7,800 City of Fort Worth 120 111.00 $470,022 $352,600 City of Grand Prairie 4 2.00 $13,759 $10,400 City of Grapevine 1 0.50 $6,006 $4,600 City of Haltom City 2 2.00 $12,896 $9,700 City of Haslet 1 0.50 $4,981 $3,800 City of Hurst 1 1.00 $11,593 $8,700 City of Keller 2 1.00 $6,552 $5,000 City of Mansfield 3 1.50 $8,054 $6,100 City of Pelican Bay 1 0.50 $4,881 $3,700 City of Richland Hills 1 1.00 $9,762 $7,400 City of River Oaks 1 1.00 $6,249 $4,700 City of Saginaw 1 0.50 $4,963 $3,800 City of Sansom Park 1 1.00 $10,064 $7,600 City of Southlake 1 1.00 $11,368 $8,600 Town of Trophy Club 1 0.50 $1,339 $1,100 City of Watagua 1 1.00 $6,929 $5,200 Town of Westover Hills 1 1.00 $6,249 $4,700 Arlington ISD 32 14.50 $63,709 $47,800 Azle ISD 4 2.00 $9,352 $7,100 Crowley ISD 18 4.50 $22,470 $16,900 Eagle Mountain-Saginaw ISD 12 4.00 $18,844 $14,200 Grapevine-Colleyville ISD 6 1.00 $11,450 $8,600 Keller ISD 16 4.50 $27,824 $20,900 Lewisville ISD 1 0.00 $400 $400 Mansfield ISD 14 5.50 $27,590 $20,700 Northwest ISD 13 2.50 $18,031 $13,600 Trophy Club MUD No. 1 1 0.50 $1,339 $1,100 TOTALS 185.00 Town Council Page 87 of 522 Meeting Date: Monday, April 7, 2014 Page 10 of 10 XVII. JOINT CONTRACT ACCEPTANCE AND APPROVAL IN TESTIMONY HEREOF, this agreement has been executed on behalf of the parties hereto as follows, to-wit: (1) It has on the _______ day of _______________, 2014 been executed by the Tarrant County Elections Administrator pursuant to the Texas Election Code so authorizing; (2) It has on the _______ day of _______________, 2014 been executed on behalf of the REPLACE WITH NAME OF POLITICAL SUBDIVISION HERE pursuant to an action of the REPLACE WITH NAME OF POLITICAL SUBDIVISION HERE so authorizing; ACCEPTED AND AGREED TO BY THE TARRANT COUNTY ELECTIONS ADMINISTRATOR: APPROVED: ___________________________________________ Stephen Vickers Chief Deputy Elections Administrator Acting pursuant to Texas Government Code § 601.002 ACCEPTED AND AGREED TO BY THE REPLACE WITH NAME OF POLITICAL SUBDIVISION HERE: APPROVED: ATTEST: {DRAFT VERSION – DO NOT SIGN} {DRAFT VERSION – DO NOT SIGN} ___________________________________________ __________________________________________ REPLACE WITH NAME OF PRESIDING OFFICER, TITLE REPLACE WITH NAME, TITLE Town Council Page 88 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 1 2002, 2027, 2235, 2320, 2569 City of Arlington 3 and Arlington ISD Atherton Elementary School 2659 2101 Overbrook Drive Arlington, Texas 76014 2058, 2181, 2205 City of Arlington 5 and Arlington ISD Bailey Jr. High School 2411 Winewood Lane Arlington, Texas 76013 2383, 2541 City of Arlington 3 and Arlington ISD Bebensee Elementary School 2383 City of Arlington 3 and Mansfield ISD 5900 Inks Lake Drive Arlington, Texas 76018 2100, 2145, 2210, 2309, 2660 City of Arlington 5 and Arlington ISD Berry Elementary School 2673 1800 Joyce Street Arlington, Texas 76010 2007, 2028, 2358, 2505, 2521 City of Arlington 2 and Arlington ISD Boles Jr. High School 2358 City of Arlington 2 and Kennedale ISD 3900 Southwest Green Oaks Boulevard 2505 City of Arlington 2 and Mansfield ISD Arlington, Texas 76017 2226, 2268, 2269, 2393, 2403 City of Arlington 3 and Arlington ISD Bob Duncan Center 2513, 2658 2800 South Center Street Arlington, Texas 76014 2134, 2169, 2263, 2302, 2381 City of Arlington 5 and Arlington ISD City of Arlington Senior Center 2428, 2461, 2675 2015 Craig Hanking Drive Arlington, Texas 76010 2304, 2553 City of Arlington 2 and Arlington ISD City of Arlington South Service Center 2304, 2356, 2519, 2553 City of Arlington 2 and Mansfield ISD 1100 Southwest Green Oaks Boulevard Arlington, Texas 76017 2029, 2306, 2506 City of Arlington 2 and Arlington ISD Corey Elementary School 2029, 2506 City of Arlington 2 and Kennedale ISD 5200 Kelly Elliott Road 2029 Arlington ISD (City of Kennedale voters) Arlington, Texas 76017 2220, 2266, 2319, 2464 City of Arlington 4 and Arlington ISD Ditto Elementary School 2220, 2464 City of Arlington 4 and FWISD 3 3001 Quail Lane Arlington, Texas 76016 Town Council Page 89 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 2 2171, 2280, 2303, 2310 City of Arlington 4 and Arlington ISD Duff Elementary School 1489, 1514, 1605, 2303, 2310 City of Arlington 4 and FWISD 3 3100 Lynnwood Drive 2606 Arlington, Texas 76013 2353, 2448, 2450 City of Arlington 3 and Arlington ISD Ferguson Jr. High School 600 Southeast Green Oaks Boulevard Arlington, Texas 76018 2354, 2438, 2449, 2523 City of Arlington 3 and Arlington ISD Fitzgerald Elementary School 2449 City of Arlington 3 and Mansfield ISD 5201 Creek Valley Drive Arlington, Texas 76018 2635 City of Arlington 3 and Arlington ISD Imogene Gideon Elementary School 2031, 2613, 2635 City of Arlington 3 and Mansfield ISD 1201 Mansfield-Webb Road Arlington, Texas 76002 2174, 2229, 2267, 2318, 2401 City of Arlington 4 and Arlington ISD Gunn Jr. High School 2451 3000 South Fielder Road Arlington, Texas 76015 2557, 2645 City of Arlington 3 and Mansfield ISD Janet Brockett Elementary School 810 Dove Meadows Drive Arlington, Texas 76002 2030, 2341, 2405, 2462, 2525 City of Arlington 2 and Mansfield ISD Kenneth Davis Elementary School 2581 900 Eden Road Arlington, Texas 76001 2173, 2219, 2305, 2425, 2520 City of Arlington 4 and Arlington ISD Miller Elementary School 2556 6401 West Pleasant Ridge Road 2219, 2305, 2425, 2474 City of Arlington 4 and Kennedale ISD Arlington, Texas 76016 1211, 2173, 2600, 2609 City of Arlington 4 and FWISD 3 2225, 2274, 2402, 2467, 2536 City of Arlington 1 and Arlington ISD Nichols Jr. High School 2537, 2561, 2571, 2616 2201 Ascension Boulevard Arlington, Texas 76006 Town Council Page 90 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 3 1441, 1442, 2224, 2315, 2316 City of Arlington 1 and Arlington ISD Northeast Branch Library 1442 City of Arlington 1 and H-E-B ISD 1905 Brown Boulevard Arlington, Texas 76006 2307, 2522 City of Arlington 2 and Arlington ISD R. F. Patterson Elementary School 2262, 2522 City of Arlington 2 and Kennedale ISD 6621 Kelly Elliott Road 2307, 2357, 2522, 2535 City of Arlington 2 and Mansfield ISD Arlington, Texas 76001 2262 Kennedale ISD (Unincorporated voters) 2029, 2262 Mansfield ISD (City of Kennedale voters) 2003, 2217 City of Arlington 1 and Arlington ISD Pope Elementary School 901 Chestnut Drive Arlington, Texas 76012 1420, 2228, 2246, 2317 City of Arlington 1 and Arlington ISD Shackelford Jr. High School 1607 City of Arlington 1 and FWISD 3 2000 North Fielder Road Arlington, Texas 76012 1380, 1463, 1631, 2055, 2281 City of Arlington 1 and Arlington ISD Sherrod Elementary School 1564, 1631 City of Arlington 1 and H-E-B ISD 2626 Lincoln Drive Arlington, Texas 76006 2143, 2147, 2168 City of Arlington 5 and Arlington ISD South Davis Elementary School 2001 South Davis Drive Arlington, Texas 76013 2052, 2161 City of Arlington 5 and Arlington ISD Tarrant County Sub-Courthouse in Arlington 700 East Abram Street Arlington, Texas 76010 2026, 2148, 2190, 2655, 2656 City of Arlington 1 and Arlington ISD Webb Elementary School 2657, 2670 1200 North Cooper Street Arlington, Texas 76011 2313, 2314, 2468 City of Arlington 4 and Arlington ISD Young Jr. High School 3200 Woodside Drive Arlington, Texas 76016 Town Council Page 91 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 4 4046, 4047, 4284, 4340, 4395 City of Azle and Azle ISD B. J. Clark Annex 4047, 4065, 4242, 4284, 4340 Azle ISD (Unincorporated voters) 601 Southeast Parkway 4371, 4373, 4375, 4395, 4532 Azle, Texas 76020 4047, 4395 Azle ISD (City of Reno voters) 3037, 3156, 3157, 3183, 3200 City of Bedford and H-E-B ISD Pat May Center 3212, 3249, 3254, 3260, 3283 1849-B Central Drive 3322, 3327, 3334, 3368, 3443 Bedford, Texas 76022 3516, 3517, 3539, 3562, 3574 1009, 1337, 4230 City of Benbrook and FWISD 7 City Elections conducted in November 1021, 1111, 1206, 1208, 4480 City of Benbrook and FWISD 7 City Elections conducted in November 4630 1111, 1348 Aledo ISD (Unincorporated voters) Contracting with Parker County 1111, 1348 (Godley ISD/Unincorporated voters) Contracting with Johnson County 1339 City of Benbrook and FWISD 7 City Elections conducted in November 4222 City of Blue Mound and Eagle Mountain-Saginaw ISD Blue Mound City Hall 301 Blue Mound Road Blue Mound, Texas 76131 Not Contracting with Tarrant County 1024, 1271, 1394, 1418, 1627 City of Burleson and Burleson ISD Burleson City Hall 1431 Burleson ISD (Unincorporated voters) 141 West Renfro Street 1294 Burleson ISD (voters in the City of Crowley) Burleson, Texas 76028 1024, 1345, 1431, 1578, 1642 Burleson ISD (voters in the City of Fort Worth) 3558 City of Colleyville and Carroll ISD Bransford Elementary School 3193, 3323, 3330, 3331, 3390 City of Colleyville and Grapevine-Colleyville ISD 601 Glade Road 3421, 3510, 3562, 3663 Colleyville, Texas 76034 3330, 3510, 3539, 3562, 3669 City of Colleyville and H-E-B ISD 3193, 3331 City of Colleyville and Keller ISD 3193, 3562, 3663 City of Colleyville and Birdville ISD Town Council Page 92 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 5 1023, 1294, 1501 City of Crowley and Crowley ISD Crowley Community Center 1294 City of Crowley (Burleson ISD voters) 900 East Glendale Street 1023, 1103, 1294 Crowley ISD (Unincorporated voters) Crowley, Texas 76036 2223 City of Dalworthington Gardens and Arlington ISD Dalworthington Gardens City Hall 2600 Roosevelt Drive Dalworthington Gardens, Texas 76016 1189 Town of Edgecliff Village and Crowley ISD Edgecliff Village Community Center 1189 Town of Edgecliff Village and FWISD 6 1605 Edgecliff Road Edgecliff Village, Texas 76134 1175, 1547, 1603, 3036, 3160 City of Euless and H-E-B ISD Euless Public Library 3183, 3216, 3247, 3329, 3335 201 North Ector Drive 3336, 3389, 3391, 3446, 3511 Euless, Texas 76039 3216, 3322, 3335, 3389, 3511 City of Euless and Grapevine-Colleyville ISD 3566, 3574 1025, 1295 City of Everman and Everman ISD Everman City Hall Annex 1244, 1352 Everman ISD (Unincorporated) 213 North Race Street Everman, Texas 76140 3321 Town of Flower Mound and Lewisville ISD See City of Grapevine site 3321 Town of Flower Mound and Grapevine-Colleyville ISD 1153, 1301 City of Forest Hill, FH Library District and Everman ISD City of Forest Hill Civic and Convention 1013, 1153, 1244, 1293, 1301 City of Forest Hill, FH Library District and FWISD 4 Center, 6901 Wichita Street Forest Hill, Texas 76140 was Mahaney Community Center 4048, 4051 City of Fort Worth 2 and FWISD 1 M. G. Ellis Early Childhood School 215 Northeast 14th Street Fort Worth, Texas 76164 Town Council Page 93 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 6 4050 City of Fort Worth 2 and Lake Worth ISD Thompson Chapel United Methodist Church 4050 City of Fort Worth 2 and Eagle Mountain-Saginaw ISD 2804 Prospect Avenue 4050 City of Fort Worth 2 and FWISD 1 Fort Worth, Texas 76106 4067 City of Fort Worth 2 and FWISD 1 Rufino E. Mendoza, Sr. Elementary School 1412 Denver Avenue Fort Worth, Texas 76164 4068, 4685 City of Fort Worth 2 and Lake Worth ISD Rosen Heights Baptist Church Family 4068, 4685 City of Fort Worth 2 and FWISD 1 Life Center, 2519 Prairie Avenue 4685 City of Fort Worth 2 and Castleberry ISD Fort Worth, Texas 76164 4087, 4092 City of Fort Worth 2 and FWISD 1 Northside Family Resource Center 2011 Prospect Avenue Fort Worth, Texas 76164 4093 City of Fort Worth 2 and FWISD 9 Diamond Hill Community Center 4093 City of Fort Worth 2 and Eagle Mountain-Saginaw ISD 1701 Northeast 36th Street 4093 City of Fort Worth 2 and Lake Worth ISD Fort Worth, Texas 76106 4110, 4563 City of Fort Worth 2 and FWISD 1 Northside Community Center 1100 Northwest 18th Street Fort Worth, Texas 76164 4122, 4397, 4565, 4568, 4598 City of Fort Worth 2 and Castleberry ISD Azle Avenue Baptist Church 4688, 4689 2901 Azle Avenue 4017, 4073, 4122, 4686 City of Fort Worth 2 and Lake Worth ISD Fort Worth, Texas 76106 4017, 4122, 4138, 4487 City of Fort Worth 2 and FWISD 1 4123 City of Fort Worth 2 and FWISD 1 Decatur Avenue Baptist Church 3715 Decatur Avenue Fort Worth, Texas 76106 4121, 4125, 4512, 4687 City of Fort Worth 2 and Castleberry ISD Trinity Baptist Church 4125, 4512, 4592, 4687 City of Fort Worth 2 and FWISD 1 620 Churchill Road Fort Worth, Texas 76114 Town Council Page 94 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 7 4231 City of Fort Worth 2 and FWISD 1 Diamond Hill-Jarvis Branch Library 4245 City of Fort Worth 2 and FWISD 9 1300 Northeast 35th Street Fort Worth, Texas 76106 4222, 4452, 4499, 4591 City of Fort Worth 2 and Eagle Mountain-Saginaw ISD Northbrook Elementary School 4452 City of Fort Worth 2 and Keller ISD 2500 Cantrell Sansom Road 4452, 4591 City of Fort Worth 2 and Northwest ISD Fort Worth, Texas 76131 4232, 4551, 4650, 4666 City of Fort Worth 2 and Eagle Mountain-Saginaw ISD Northwest Branch Library 4551, 4650 City of Fort Worth 2 and Lake Worth ISD 6228 Crystal Lake Drive 4232, 4650 Eagle Mountain-Saginaw ISD (Unincorporated voters) Fort Worth, Texas 76179 1117, 4498 City of Fort Worth 3 and FWISD 6 McLean 6th Grade School 3201 South Hills Avenue Fort Worth, Texas 76109 1120, 1676 City of Fort Worth 3 and FWISD 5 JPS Health Center Viola M. Pitts/Como Lower Level, Auditorium 1 4701 Bryant Irvin Road North Fort Worth, Texas 76107 4129, 4136, 4630 City of Fort Worth 3 and FWISD 7 Agape Baptist Church 3900 Southwest Boulevard Fort Worth, Texas 76116 4163 City of Fort Worth 3 and Crowley ISD Southcliff Baptist Church Annex 4163 City of Fort Worth 3 and FWISD 6 4833 Selkirk Drive Fort Worth, Texas 76109 4179 City of Fort Worth 3 and White Settlement ISD R. D. Evans Community Center 4179 City of Fort Worth 3 and FWISD 5 3242 Lackland Road Fort Worth, Texas 76116 4182 City of Fort Worth 3 and FWISD 5 Tanglewood Elementary School 3060 Overton Park Drive West Fort Worth, Texas 76109 Town Council Page 95 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 8 4203 City of Fort Worth 3 and White Settlement ISD Western Hills United Methodist Church 1337, 4135 City of Fort Worth 3 and FWISD 7 2820 Laredo Drive 4203 City of Fort Worth 3 and FWISD 5 Fort Worth, Texas 76116 1339, 4230 City of Fort Worth 3 and FWISD 7 Bethel United Methodist Church 5000 Southwest Boulevard Fort Worth, Texas 76116 1111, 1296, 1423 City of Fort Worth 3 and FWISD 7 St. Peter’s Antiochian Orthodox Church 1296, 1423 City of Fort Worth 3 and Crowley ISD 7601 Bellaire Drive South 1111 FWISD 7 (Unincorporated voters) Fort Worth, Texas 76132 1111 Crowley ISD (Unincorporated voters) 4342 City of Fort Worth 3 and FWISD 7 Faith Lutheran Church 4551 Southwest Boulevard Fort Worth, Texas 76116 1366, 4130, 4343 City of Fort Worth 3 and Crowley ISD Arborlawn United Methodist Church 1472, 4343 City of Fort Worth 3 and FWISD 5 Annex Building, 4917 Briarhaven Road 4130 City of Fort Worth 3 and FWISD 6 Fort Worth, Texas 76109 1366 City of Fort Worth 3 and FWISD 7 was Arborlawn 5001 Briarhaven Road 4118, 4456 City of Fort Worth 3 and FWISD 7 Mary Louise Phillips Elementary School 4115, 4178, 4252 City of Fort Worth 3 and FWISD 5 3020 Bigham Boulevard 4178 City of Fort Worth 3 and White Settlement ISD Fort Worth, Texas 76116 4020, 4204, 4497 City of Fort Worth 3 and White Settlement ISD Birchman Baptist Church 4069, 4480 City of Fort Worth 3 and FWISD 7 2700 Dale Lane 4497 City of Fort Worth 3 and FWISD 5 Fort Worth, Texas 76116 4069, 4480 FWISD 7 (Unincorporated voters) 4128, 4276, 4369, 4534 City of Fort Worth 3 and White Settlement ISD Normandale Baptist Church 4276, 4369 White Settlement ISD (Unincorporated voters) 2100 Chapel Creek Boulevard Fort Worth, Texas 76108 1082, 1198, 1625 City of Fort Worth 4 and FWISD 9 Riverside Community Center 1623, 4362 City of Fort Worth 4 and Birdville ISD 3700 East Belknap Street Fort Worth, Texas 76111 Town Council Page 96 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 9 1146, 1491 City of Fort Worth 4 and FWISD 2 Eastern Hills High School 5701 Shelton Drive Fort Worth, Texas 76112 1279 City of Fort Worth 4 and FWISD 3 Atwood McDonald Elementary School 1850 Barron Lane Fort Worth, Texas 76112 1151, 1199, 1277, 1460, 1622 City of Fort Worth 4 and FWISD 2 East Regional Library 1679 6301 Bridge Street 1199, 1430, 1622 City of Fort Worth 4 and Birdville ISD Fort Worth, Texas 76112 1430 City of Fort Worth 4 and FWISD 9 3552, 3570, 3637, 3647 City of Fort Worth 4 and Keller ISD Northpark YMCA 3637 City of Fort Worth 4 and Northwest ISD 9100 North Beach Street 3552 Keller ISD (Unincorporated voters) Fort Worth, Texas 76244 4101, 4485 City of Fort Worth 4 and FWISD 9 Amon Carter-Riverside High School 3301 Yucca Avenue Fort Worth, Texas 76111 4162, 4596, 4604, 4682 City of Fort Worth 4 and FWISD 9 Riverside Applied Learning Center 4602 City of Fort Worth 4 and Birdville ISD 3600 Fossil Drive Fort Worth, Texas 76111 4374, 4528 City of Fort Worth 4 and Keller ISD Summerglen Branch Library 4205 Basswood Boulevard Fort Worth, Texas 76137 4250, 4261, 4508, 4540 City of Fort Worth 4 and Keller ISD Parkview Elementary School 4250 City of Fort Worth 4 and FWISD 9 6900 Bayberry Drive 4250, 4540 City of Fort Worth 4 and Eagle Mountain-Saginaw ISD Fort Worth, Texas 76137 4540 City of Fort Worth 4 and Northwest ISD 4234, 4588 City of Fort Worth 4 and Birdville ISD Hillwood Middle School 4234, 4588 City of Fort Worth 4 and Keller ISD 8250 Parkwood Hill Boulevard Fort Worth, Texas 76137 Town Council Page 97 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 10 1012, 1099, 1407, 1414 City of Fort Worth 5 and FWISD 3 Handley-Meadowbrook Community Center 6201 Beaty Street Fort Worth, Texas 76112 1074 City of Fort Worth 5 and FWISD 2 D. McRae Elementary School 3316 Avenue N Fort Worth, Texas 76105 1098 City of Fort Worth 5 and FWISD 2 S. S. Dillow Elementary School 4000 Avenue N Fort Worth, Texas 76105 1126, 1278 City of Fort Worth 5 and FWISD 3 First Jefferson Unitarian Universalist Church 1959 Sandy Lane Fort Worth, Texas 76112 1127 City of Fort Worth 5 and FWISD 3 Martin Luther King Community Center 5565 Truman Drive Fort Worth, Texas 76112 1106 City of Fort Worth 5 and FWISD 4 Griffin-Poly Sub-Courthouse 1132 City of Fort Worth 5 and FWISD 2 3212 Miller Avenue Fort Worth, Texas 76119 1149 City of Fort Worth 5 and FWISD 4 W. M. Green Elementary School 1184, 2600, 2601 City of Fort Worth 5 and FWISD 3 4612 David Strickland Road Fort Worth, Texas 76119 1420, 1589 City of Fort Worth 5 and Arlington ISD St. John Missionary Baptist Church 1175, 1586, 1589, 3409, 3560 City of Fort Worth 5 and H-E-B ISD 3324 House Anderson Road 3653, 3654 Euless, Texas 76040 1188 City of Fort Worth 5 and FWISD 3 Paul Laurence Dunbar High School 5700 Ramey Avenue Fort Worth, Texas 76112 1064, 1197 City of Fort Worth 5 and FWISD 3 River Trails Elementary School 1197 City of Fort Worth 5 and H-E-B ISD 8850 Elbe Trail 1197 City of Fort Worth 5 and Birdville ISD Fort Worth, Texas 76118 Town Council Page 98 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 11 1211, 1610 City of Fort Worth 5 and FWISD 3 Sunrise-McMillian Elementary School 3409 Stalcup Road Fort Worth, Texas 76119 1227, 1437, 1490, 1518, 1651 City of Fort Worth 5 and FWISD 3 Pantego Bible Church 2606 8001 Anderson Boulevard Fort Worth, Texas 76120 1270, 2419 City of Fort Worth 5 and FWISD 3 Handley United Methodist Church 2929 Forest Avenue Fort Worth, Texas 76112 1297 City of Fort Worth 5 and FWISD 3 A. M. Pate Elementary School 3800 Anglin Drive Fort Worth, Texas 76119 1311, 1489, 1514 City of Fort Worth 5 and FWISD 3 St. Matthew United Methodist Church 2414 Hitson Lane Fort Worth, Texas 76112 1346 City of Fort Worth 5 and FWISD 3 Brighter Outlook Center 1415 City of Fort Worth 5 and FWISD 2 4910 Dunbar Street Fort Worth, Texas 76105 1388, 1404, 1603, 3329, 3336 City of Fort Worth 5 and H-E-B ISD Candlewood Suites Hotel 1603 City of Fort Worth 5 and Grapevine-Colleyville ISD 4200 Reggis Court Fort Worth, Texas 76155 1022 City of Fort Worth 6 and FWISD 6 St. Matthew’s Lutheran Church 5709 Wedgwood Drive Fort Worth, Texas 76133 1024 City of Fort Worth 6 and Everman ISD Precinct One Garage 1024, 1436, 1642 City of Fort Worth 6 and Crowley ISD 800 East Rendon Crowley Road 1034, 1504 City of Fort Worth 6 and Mansfield ISD Burleson, Texas 76028 1024, 1345, 1431,1642 City of Fort Worth 6 (Burleson ISD voters) Town Council Page 99 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 12 1119, 1347, 1348, 1641 City of Fort Worth 6 and Crowley ISD Westminster Presbyterian Church 1119, 1347 City of Fort Worth 6 and FWISD 6 7001 Trail Lake Drive 1348, 1424, 1641 Crowley ISD (Unincorporated voters) Fort Worth, Texas 76133 1348 FWISD 7 (Unincorporated voters) 1142 City of Fort Worth 6 and FWISD 6 Bruce Shulkey Elementary School 5533 Whitman Avenue Fort Worth, Texas 76133 1207 City of Fort Worth 6 and FWISD 6 Southwest Sub-Courthouse 1207 City of Fort Worth 6 and Crowley ISD 6551 Granbury Road Fort Worth, Texas 76133 1238 City of Fort Worth 6 and FWISD 6 Trinity Cumberland Presbyterian Church 1459 City of Fort Worth 6 and Crowley ISD 7120 West Cleburne Road Fort Worth, Texas 76133 1241, 4070 City of Fort Worth 6 and FWISD 6 Wedgwood 6th Grade School 4070 City of Fort Worth 6 and Crowley ISD 4212 Belden Avenue Fort Worth, Texas 76132 1167 City of Fort Worth 6 and FWISD 8 Fort Worth Education Association 1257, 1004 City of Fort Worth 6 and FWISD 6 6021 Westcreek Drive Fort Worth, Texas 76133 1105, 1264 City of Fort Worth 6 and FWISD 6 Southwest Community Center 1264 City of Fort Worth 6 and Crowley ISD 6300 Welch Avenue Fort Worth, Texas 76133 1255, 1265 City of Fort Worth 6 and FWISD 6 Genesis United Methodist Church 1255, 1294, 1639 City of Fort Worth 6 and Crowley ISD 7635 South Hulen Street 1639 Crowley ISD (Unincorporated voters) Fort Worth, Texas 76133 1071, 1186, 1377 City of Fort Worth 6 and Crowley ISD Fort Worth Presbyterian Church 1071, 1377 City of Fort Worth 6 and FWISD 7 6251 Oakmont Trail 1186 Crowley ISD (Unincorporated voters) Fort Worth, Texas 76132 1186 FWISD 7 (Unincorporated voters) was Oakmont Elementary School Town Council Page 100 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 13 3043, 3152, 3567 City of Fort Worth 7 and Northwest ISD Sendera Ranch Elementary School 3567, 4694 City of Fort Worth 7 and Eagle Mountain-Saginaw ISD 1216 Diamondback Lane 3567, 4694 Eagle Mountain-Saginaw ISD (Unincorporated voters) Haslet, Texas 76052 3043, 3152, 3363, 3567, 4044 Northwest ISD (Unincorporated voters) 4371 Northwest ISD (Unincorporated and Newark voters) 3372, 3417, 3646 City of Fort Worth 7 and Keller ISD John M. Tidwell Middle School 3185, 3192, 3372, 3417, 3646 City of Fort Worth 7 and Northwest ISD 3937 Haslet-Roanoke Road 3372 Keller ISD (Unincorporated voters) Fort Worth, Texas 76262 3646 Northwest ISD (Unincorporated voters) was Kay Granger Elementary School 3422 Keller ISD (Town of Westlake voters) 3372, 3422, 3646 Northwest ISD (Town of Westlake voters) 3422, 3646 Northwest ISD (City of Roanoke voters) 3240, 3465, 3486, 3648 City of Fort Worth 7 and Keller ISD Woodland Springs Elementary School 3465, 3486 City of Fort Worth 7 and Northwest ISD 12120 Woodland Springs Drive 3465 Keller ISD (Unincorporated voters) Fort Worth, Texas 76244 4016 City of Fort Worth 7 and FWISD 5 South Hi Mount Elementary School 4350 City of Fort Worth 7 and FWISD 1 4101 Birchman Avenue Fort Worth, Texas 76107 4086, 4116 City of Fort Worth 7 and FWISD 5 North Hi Mount Elementary School 3801 West 7th Street Fort Worth, Texas 76107 4137 City of Fort Worth 7 and FWISD 5 Jo Kelly School 4243 City of Fort Worth 7 and Castleberry ISD 201 North Bailey Avenue Fort Worth, Texas 76107 4284, 4373 City of Fort Worth 7 and Azle ISD voters Lake Patrol Headquarters 4053, 4091, 4113, 4242, 4272 City of Fort Worth 7 and FWISD 5 7501 Surfside Drive 4284, 4285, 4373 Fort Worth, Texas 76135 4053 City of Fort Worth 7 and Eagle Mountain-Saginaw ISD 4091, 4113, 4285 City of Fort Worth 7 and Lake Worth ISD 4113, 4272 City of Fort Worth 7 and White Settlement ISD 4065 City of Fort Worth 3 and White Settlement ISD 4053 Eagle Mountain-Saginaw ISD (Unincorporated voters) 4091 Eagle Mountain-Saginaw ISD (City of Lake Worth voters) Town Council Page 101 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 14 4344 City of Fort Worth 7 and FWISD 5 Arlington Heights Christian Church 4629 Bryce Avenue Fort Worth, Texas 76107 was Calvary Bible Church 4044, 4045, 4375, 4429, 4454 City of Fort Worth 7 and Eagle Mountain-Saginaw ISD W. E. Boswell High School 4532 5805 Bailey-Boswell Road 4375 City of Fort Worth 7 and FWISD 5 Fort Worth, Texas 76179 4044 City of Fort Worth 7 and Northwest ISD 4045, 4375, 4429, 4532 Eagle Mountain-Saginaw ISD (Unincorporated voters) 4599, 4638 City of Fort Worth 7 and Northwest ISD Sonny and Allegra Nance Elementary School 4599, 4638 City of Fort Worth 7 and Eagle Mountain-Saginaw ISD 701 Tierra Vista Way 4599 City of Fort Worth 7 and Keller ISD Fort Worth, Texas 76131 1005, 1444 City of Fort Worth 8 and FWISD 4 Van Zandt-Guinn Elementary School 1677, 4006 City of Fort Worth 9 and FWISD 4 501 Missouri Avenue Fort Worth, Texas 76104 1008, 1544, 1550 City of Fort Worth 8 and FWISD 4 Versia L. Williams Elementary School 901 Baurline Avenue Fort Worth, Texas 76111 1010 City of Fort Worth 8 and FWISD 4 Community Christian Church Education Building, 1720 Vickery Boulevard East Fort Worth, Texas 76104 1019, 1476 City of Fort Worth 8 and FWISD 9 Andrew “Doc” Session Community Center 201 South Sylvania Avenue Fort Worth, Texas 76111 1056 City of Fort Worth 8 and FWISD 4 I. M. Terrell Elementary School 1411 I. M. Terrell Circle Fort Worth, Texas 76102 1059 City of Fort Worth 8 and FWISD 4 Antioch Missionary Baptist Church 1063 East Rosedale Street Fort Worth, Texas 76104 Town Council Page 102 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 15 1061 City of Fort Worth 8 and FWISD 9 Greenway Church 1816 Delga Street Fort Worth, Texas 76102 1066, 1236, 1617 City of Fort Worth 8 and FWISD 9 Christ Cathedral Church 1479, 1672 City of Fort Worth 8 and FWISD 2 3201 Purington Avenue Fort Worth, Texas 76103 1011, 1075 City of Fort Worth 8 and FWISD 2 Sycamore Recreation Center 2525 East Rosedale Street Fort Worth, Texas 76105 1079 City of Fort Worth 8 and FWISD 4 Pilgrim Rest Missionary Baptist Church 960 East Baltimore Avenue Fort Worth, Texas 76104 1080 City of Fort Worth 8 and FWISD 4 Greater Harvest Church of God in Christ 2900 Mitchell Boulevard Fort Worth, Texas 76105 1083 City of Fort Worth 8 and FWISD 2 Beth Eden Missionary Baptist Church 3309 Wilbarger Street Fort Worth, Texas 76119 was Oaklawn Elementary 1088 City of Fort Worth 8 and FWISD 2 Sagamore Hill Elementary School 701 South Hughes Avenue Fort Worth, Texas 76103 1078, 1089, 1619 City of Fort Worth 8 and FWISD 4 Morningside Elementary School 2601 Evans Avenue Fort Worth, Texas 76104 1090 City of Fort Worth 8 and FWISD 4 Greater Progressive Church of God in Christ 1349 East Baltimore Avenue Fort Worth, Texas 76104 Town Council Page 103 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 16 1104 City of Fort Worth 8 and FWISD 4 Bradley Center 2601 Timberline Drive Fort Worth, Texas 76119 1150, 1559 City of Fort Worth 8 and Everman ISD New Hope Fellowship 1150, 1543, 1549, 1559, 1628 City of Fort Worth 8 and FWISD 4 6410 South Freeway Fort Worth, Texas 76134 1154, 1555, 1576, 1652, 4495 City of Fort Worth 8 and FWISD 4 Carter Park Elementary School 1597 City of Fort Worth 9 and FWISD 8 1204 East Broadus Avenue 1555, 1652 City of Fort Worth 8 and Everman ISD 5 Fort Worth, Texas 76115 1170 City of Fort Worth 8 and FWISD 2 Victory Temple Worship Center 2001 Oakland Boulevard Fort Worth, Texas 76103 1251 City of Fort Worth 8 and Crowley ISD Meadowcreek Elementary School 2801 Country Creek Lane Fort Worth, Texas 76123 1244, 1291, 1301 City of Fort Worth 8 and FWISD 4 Highland Hills Community Center 1025, 1084, 1244, 1291, 1295 City of Fort Worth 8 and Everman ISD 1600 Glasgow Road 1439, 1577, 1578, 1621, 2474 Fort Worth, Texas 76134 1244, 2474 City of Fort Worth 8 and Kennedale ISD 1578 City of Fort Worth 8 (Burleson ISD voters) 1578 City of Fort Worth 8 and Crowley ISD 1084, 1439, 2474 Everman ISD (Unincorporated voters) 1244 Kennedale ISD (Unincorporated voters) 1189, 1300 City of Fort Worth 8 and Crowley ISD St. Luke Cumberland Presbyterian Church 1189 City of Fort Worth 8 and FWISD 6 1404 Sycamore School Road Fort Worth, Texas 76134 1378 City of Fort Worth 8 and Crowley ISD Hanmaum International Baptist Church 1378 City of Fort Worth 8 and Everman ISD 1420 West Everman Parkway 1378 City of Fort Worth 8 and FWISD 4 Fort Worth, Texas 76134 was Parkway Elementary School Town Council Page 104 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 17 1440, 1292 City of Fort Worth 8 and FWISD 6 Southwood Baptist Church 1440 City of Fort Worth 8 and Crowley ISD 2633 Altamesa Boulevard Fort Worth, Texas 76133 1477, 1482 City of Fort Worth 8 and FWISD 2 Glen Park Elementary School 3601 Pecos Drive Fort Worth, Texas 76119 1001, 1376, 4458 City of Fort Worth 9 and FWISD 9 Tarrant County Plaza Building 4494 City of Fort Worth 2 and FWISD 1 201 Burnett Street Fort Worth, Texas 76102 1014, 1237 City of Fort Worth 9 and FWISD 8 Greenbriar Elementary School 1605 Grady Lee Street Fort Worth, Texas 76134 1015, 1684 City of Fort Worth 9 and FWISD 1 Texas Academy of Biomedical Sciences 1094, 1674 City of Fort Worth 9 and FWISD 5 3813 Valentine Street Fort Worth, Texas 76107 was Arlington Heights Health and Rehab Center for Precincts 1094 and 1674 1062, 1455, 1457, 1608, 1611 City of Fort Worth 9 and FWISD 9 E. M. Daggett Elementary School 4077, 4096 958 Page Avenue Fort Worth, Texas 76110 1076, 1095 City of Fort Worth 9 and FWISD 5 Lily B. Clayton Elementary School 2000 Park Place Avenue Fort Worth, Texas 76110 1085 City of Fort Worth 9 and FWISD 8 Rosemont Middle School 1501 West Seminary Drive Fort Worth, Texas 76115 1108, 1298, 1408, 1434, 1633 City of Fort Worth 9 and FWISD 8 R. L. Paschal High School 1298 City of Fort Worth 9 and FWISD 6 3001 Forest Park Boulevard 1081 City of Fort Worth 3 and FWISD 6 Fort Worth, Texas 76110 was St. Stephen Presbyterian for Precinct 1081 Town Council Page 105 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 18 1109, 1416, 1473, 4503, 4573 City of Fort Worth 9 and FWISD 9 Fort Worth Harvest Baptist Church 4124 City of Fort Worth 9 and FWISD 1 620 North Chandler Drive Fort Worth, Texas 76111 1133, 1165, 1445 City of Fort Worth 9 and FWISD 8 South Hills Elementary School 3009 Bilglade Road Fort Worth, Texas 76133 1273, 1594 City of Fort Worth 9 and FWISD 8 El Buen Pastor Baptist Church 4800 Merida Avenue Fort Worth, Texas 76115 4057, 4492 City of Fort Worth 9 and FWISD 9 Trinity Terrace 4493, 4496, 4634 City of Fort Worth 9 and FWISD 1 1600 Texas Street Fort Worth, Texas 76102 4060 City of Fort Worth 9 and FWISD 9 De Zavala Elementary School 1419 College Avenue Fort Worth, Texas 76104 4097, 4475, 4478 City of Fort Worth 9 and FWISD 8 George C. Clarke Elementary School 4312 City of Fort Worth 9 and FWISD 9 3300 South Henderson Street Fort Worth, Texas 76110 1412, 4107 City of Fort Worth 9 and FWISD 8 Worth Heights Community Center 3551 New York Avenue Fort Worth, Texas 76110 4155, 4195 City of Fort Worth 9 and FWISD 8 Richard J. Wilson Elementary School 900 West Fogg Street Fort Worth, Texas 76110 4201 City of Fort Worth 9 and FWISD 9 Worth Heights Elementary School 519 East Butler Street Fort Worth, Texas 76110 4233, 4370, 4432 City of Fort Worth 9 and FWISD 9 Southside Church of Christ 2101 Hemphill Street Fort Worth, Texas 76110 Town Council Page 106 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 19 4253, 4615, 4640, 4683 City of Fort Worth 9 and FWISD 1 Charles E. Nash Elementary School 1678, 4572 City of Fort Worth 9 and FWISD 9 401 Samuels Avenue Fort Worth, Texas 76102 1481, 4256 City of Fort Worth 9 and FWISD 8 Hubbard Heights Elementary School 1351 City of Fort Worth 9 and FWISD 4 1333 West Spurgeon Street Fort Worth, Texas 76115 4288, 4587 City of Fort Worth 9 and FWISD 9 Macedonia Missionary Baptist Church Ministry Center, 2740 South Freeway Fort Worth, Texas 76104 1382, 1404, 2158, 2546, 2616 City of Grand Prairie 1 and Arlington ISD Myrtice and Curtis Larson Elementary 2680, 2681 2620 Avenue K Grand Prairie, Texas 75050 2275, 2349, 2381, 2438, 2466 City of Grand Prairie 4 and Arlington ISD James Starrett Elementary School 2484 2675 Fairmont Drive 2299, 2379, 2488 City of Grand Prairie 6 and Arlington ISD Grand Prairie, Texas 75052 2180, 2411 City of Grand Prairie 1 and Arlington ISD UAW Local #276 2413 City of Grand Prairie 4 and Arlington ISD 2505 W. E. Roberts Street Grand Prairie, Texas 75051 2379, 2453, 2488, 2612, 2618 City of Grand Prairie 6 and Mansfield ISD Anna May Daulton Elementary School 2644 2607 North Grand Peninsula Drive 2644 Mansfield ISD (Unincorporated voters) Grand Prairie, Texas 75054 3035, 3038, 3039, 3114, 3321 City of Grapevine and Grapevine-Colleyville ISD Grapevine Convention Center 3361, 3384, 3385, 3390, 3396 1209 South Main Street 3469, 3470, 3530, 3542 Grapevine, Texas 76051 3035, 3321 City of Grapevine and Northwest ISD 3035, 3038, 3039, 3384, 3542 City of Grapevine and Carroll ISD 3321 Town of Flower Mound and Lewisville ISD 3321 Town of Flower Mound and Grapevine-Colleyville ISD Town Council Page 107 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 20 1199, 1622, 4042, 4102, 4141 City of Haltom City and Birdville ISD Haltom City Northeast Center 4159, 4218, 4239, 4290, 4328 3201 Friendly Lane 4362, 4399, 4485, 4620, 4632 Haltom City, Texas 76117 4102, 4483, 4485 City of Haltom City and FWISD 9 4191, 4410, 4533 City of Haltom City and Birdville ISD John D. Spicer Elementary School 4410 City of Haltom City and Keller ISD 4300 Estes Park Road Haltom City, Texas 76137 3152, 3185, 3192, 3363 City of Haslet and Northwest ISD Haslet Community Center 3185, 3192, 3417 Northwest ISD (Unincorporated voters) 105 Main Street Haslet, Texas 76052 3032, 3176, 3196, 3248, 3282 City of Hurst and Birdville ISD Hurst Public Library 3433, 3575, 3582, 3583, 3584 901 Precinct Line Road 3585, 3661, 3662 Hurst, Texas 76053 3248 City of Hurst and Grapevine-Colleyville ISD 3248, 3582 City of Hurst and Keller ISD 3032, 3139, 3156, 3166, 3172 City of Hurst and H-E-B ISD 3176, 3196, 3213, 3282, 3560 3590, 3653, 3654, 3665 3248 Keller ISD (Unincorporated voters) 3248 Grapevine-Colleyville ISD (Unincorporated voters) 3040, 3240, 3386, 3392, 3422 City of Keller and Keller ISD Bear Creek Intermediate 3502, 3648, 3668, 3671 801 Bear Creek Parkway 3422 City of Keller and Northwest ISD Keller, Texas 76248 3240, 3286 Keller ISD (Unincorporated) 3054, 3072, 3365, 3471, 3554 City of Keller and Keller ISD Shady Grove Elementary School 3580, 3624 1400 Sarah Brooks Drive 3624 City of Keller and Carroll ISD Keller, Texas 76248 3624 Keller ISD (Unincorporated voters) Town Council Page 108 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 21 2029 City of Kennedale and Arlington ISD Kennedale Community Center 1427, 1515, 2474 City of Kennedale and FWISD 4 316 West 3rd Street 2029, 2262, 2305, 2474, 2522 City of Kennedale and Kennedale ISD Kennedale, Texas 76060 2029, 2262 City of Kennedale and Mansfield ISD Arlington ISD moved to Corey Elementary 2474 Kennedale ISD (Unincorporated voters) Mansfield ISD moved to R. F. Patterson 4259 Town of Lakeside and Azle ISD voters Lakeside Town Hall 4259 Town of Lakeside and White Settlement ISD 9830 Confederate Park Road 4065 White Settlement ISD (Unincorporated voters) Lakeside, Texas 76108 4053, 4091, 4242, 4285 City of Lake Worth and Lake Worth ISD Sheriff’s Office North Patrol Division 4091 City of Lake Worth and Eagle Mountain-Saginaw ISD 6651 Lake Worth Boulevard Lake Worth, Texas 76135 EMS ISD moved to Lake Patrol Headquarters 2033, 2360, 2614, 2618, 2643 City of Mansfield and Mansfield ISD Mansfield Sub-Courthouse 1100 East Broad Street Mansfield, Texas 76063 2221, 2308, 2357, 2636 City of Mansfield and Mansfield ISD Donna Shepard Intermediate School 1034, 2258, 2355 City of Mansfield and Mansfield ISD 1280 FM Road 1187 2258, 2308 Mansfield ISD (Unincorporated voters) Mansfield, Texas 76063 2426, 2435, 2524, 2548 City of Mansfield and Mansfield ISD Brooks Wester Middle School 2645 1520 North Walnut Creek Mansfield, Texas 76063 3041, 3177, 3214, 3333, 3324 City of North Richland Hills and Birdville ISD Library Community Room 3364, 3575, 3582, 3583, 3664 9015 Grand Avenue 3041, 3664 City of North Richland Hills and H-E-B ISD North Richland Hills, Texas 76180 3049, 3209, 3387, 3447 City of North Richland Hills and Keller ISD Bursey Road Senior Adult Center 3049, 3063, 3209, 3367, 3387 City of North Richland Hills and Birdville ISD 7301 Bursey Road 3507, 3527, 3584 North Richland Hills, Texas 76180 3140, 3215, 3289, 3325, 3326 City of North Richland Hills and Birdville ISD Dan Echols Senior Adult Center 4399, 4629 6801 Glenview Drive North Richland Hills, Texas 76180 Town Council Page 109 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 22 2112 Town of Pantego and Arlington ISD Pantego Town Hall Council Chambers 1614 South Bowen Road Pantego, Texas 76013 4047 City of Pelican Bay and Azle ISD voters Pelican Bay City Hall 1300 Pelican Circle Pelican Bay, Texas 76020 1199, 3131, 3164, 3325, 3406 City of Richland Hills and Birdville ISD Richland Hills Community Center 4620 3204 Diana Drive Richland Hills, Texas 76118 4121, 4125, 4202, 4598, 4687 City of River Oaks and Castleberry ISD River Oaks City Hall 4900 River Oaks Boulevard River Oaks, Texas 76114 3422, 3646 City of Roanoke and Northwest ISD See Town of Westlake site 4018, 4044, 4338, 4454, 4499 City of Saginaw and Eagle Mountain-Saginaw ISD Saginaw-Log Cabin Senior Center 4531, 4638, 4649, 4666 405 South Belmont Street 4093, 4245 City of Saginaw and FWISD 9 Saginaw, Texas 76179 4138, 4400, 4593, 4690, 4691 City of Sansom Park and Castleberry ISD Sansom Park City Hall 4692, 4693 5705 Azle Avenue 4138, 4400, 4593, 4595 City of Sansom Park and Lake Worth ISD Sansom Park, Texas 76114 4138, 4487, 4593 City of Sansom Park and FWISD 1 3039, 3359, 3470, 3526, 3529 City of Southlake and Carroll ISD Carroll Senior High School 3538, 3545, 3558, 3579 1501 West Southlake Boulevard 3470, 3542 City of Southlake and Grapevine-Colleyville ISD Southlake, Texas 76092 3545, 3579, 3626 City of Southlake and Keller ISD 3039, 3529 City of Southlake and Northwest ISD 3286, 3502 Keller ISD (Town of Westlake voters) 3286 Northwest ISD (Town of Westlake voters) Town Council Page 110 of 522 Meeting Date: Monday, April 7, 2014 Attachment A - May 10, 2014 Election Day Polling Locations – 185 total (as of 3/13/14) Precincts at Site Entities Election Day Polling Location No Election 23 3500 Town of Trophy Club, Trophy Club MUD and Northwest ISD Svore Municipal Building 3500 Town of Trophy Club, Trophy Club MUD and Carroll ISD Public Services Conference Room 100 Municipal Drive, Trophy Club, 76262 3187, 3194, 3332, 3398, 3509 City of Watauga and Birdville ISD Watauga City Hall 3667 7105 Whitley Road 3187, 3287, 3398, 3509, 4261 City of Watauga and Keller ISD Watauga, Texas 76148 3286, 3500 Town of Westlake and Carroll ISD Westlake Town Offices 3286, 3422, 3502 Town of Westlake and Keller ISD Solona Office Complex 3286, 3372, 3422, 3646 Town of Westlake and Northwest ISD 3 Village Circle 3422, 3646 City of Roanoke and Northwest ISD Westlake, Texas 76262 Precincts 3286, 3502 to Carroll Senior High School Precincts 3372, 3422, 3646 to Tidwell Middle 4115 Town of Westover Hills and FWISD 5 Westover Hills Town Hall 5824 Merrymount Road Westover Hills, Texas 76107 4144 City of Westworth Village and FWISD 5 Westworth Village City Hall 4144 City of Westworth Village and White Settlement ISD 311 Burton Hill Road Westworth Village, Texas 76114 4020, 4113, 4128 City of White Settlement and FWISD 5 White Settlement ISD Administration 4020, 4128, 4144, 4204 City of White Settlement and White Settlement ISD Building, 401 South Cherry Lane White Settlement, Texas 76108 4044, 4371 Eagle Mountain-Saginaw ISD (Unincorporated voters) Eagle Mountain Elementary School 4371 Eagle Mountain-Saginaw ISD (Newark voters) 9700 Morris Dido Newark Road Fort Worth, Texas 76179 1034, 1352, 1504, 2262 Mansfield ISD (Unincorporated voters) Ponder Elementary School 12350 Rendon Road Burleson, Texas 76028 Town Council Page 111 of 522 Meeting Date: Monday, April 7, 2014 EARLY VOTING FOR MAY 10, 2014   (VOTACIÓN ADELANTADA DE 10 DE MAYO DE 2014)  JOINT GENERAL AND SPECIAL ELECTIONS  (ELECCIÓNES GENERALES Y ESPECIALES CONJUNTAS)   3/21/2014 10:54:41 AM This schedule of early voting locations, dates and times applies to voters in the following cities, towns, schools and water districts (Este  horario de casetas de votación adelantada, sus fechas y tiempos aplican a votantes en las siguientes ciudades, pueblos, escolares  y distritos de agua): Arlington, Bedford, Colleyville, Crowley, Dalworthington Gardens, Edgecliff Village, Euless, Forest Hill, Fort Worth, Grand Prairie, Grapevine, Haltom City, Haslet, Hurst, Keller, Mansfield, Pelican Bay, Richland Hills, River Oaks, Saginaw, Sansom Park, Southlake, Trophy Club, Watauga, Westover Hills, Arlington ISD, Azle ISD, Crowley ISD, Eagle Mountain-Saginaw ISD, Grapevine-Colleyville ISD, Keller ISD, Lewisville ISD, Mansfield ISD, Northwest ISD, and Trophy Club Municipal Utility District No. 1.   EARLY VOTING BY PERSONAL APPEARANCE DAYS AND HOURS (DÍAS Y HORAS DE VOTACIÓN TEMPRANO POR APARICIÓN PERSONAL)  April (Abril) 28 – 30  Monday – Wednesday (Lunes ‐ Miércoles) 8:00 a.m. – 5:00 p.m.  May (Mayo) 1 – 2  Thursday – Friday (Jueves – Viernes)  8:00 a.m. – 5:00 p.m.   May (Mayo) 3 Saturday (Sábado)    7:00 a.m. – 7:00 p.m.   May (Mayo) 4    Sunday (Domingo)                 11:00 a.m. – 4:00 p.m.   May (Mayo) 5 – 6  Monday – Tuesday (Lunes – Martes)  7:00 a.m. – 7:00 p.m.     Location  (Ubicación)  Address  (Dirección)  City  (Ciudad)  Zip Code  (Código  postal)  1 Bob Duncan Center 2800 South Center Street Arlington 76014  2 Elzie Odom Athletic Center 1601 NE Green Oaks Boulevard Arlington 76006  3 Center for Community Service   Junior League of Arlington 4002 West Pioneer Parkway Arlington 76013  4 South Service Center 1100 SW Green Oaks Boulevard Arlington 76017  5 Tarrant County Sub‐Courthouse in Arlington 700 E. Abram Street Arlington 76010  6 B J Clark Annex  Room 4 603 Southeast Parkway Azle 76020  7 Bedford Public Library 2424 Forest Ridge Drive Bedford 76021  8 Colleyville City Hall 100 Main Street Colleyville 76034  9 Crowley Community Center 900 East Glendale Street Crowley 76036  10 Euless Public Library 201 North Ector Drive Euless 76039  11 Forest Hill Civic and Convention Center 6901 Wichita Street Forest Hill 76140  12 All Saints Catholic Church Parish Hall 200 N.W. 20th Street Fort Worth 76164  13 Diamond Hill/Jarvis Library 1300 Northeast 35th Street Fort Worth 76106  14 Griffin Sub‐Courthouse 3212 Miller Avenue Fort Worth 76119  15 Handley‐Meadowbrook Community Center 6201 Beaty Street Fort Worth 76112  16 James Avenue Service Center 5001 James Avenue Fort Worth 76115  17 JPS Health Center Viola M. Pitts/Como  Lower Level – Suite 100 4701 Bryant Irvin Road N. Fort Worth 76107  18 Northwest Branch Library 6228 Crystal Lake Drive Fort Worth 76179  19 Riverside Community Center 3700 East Belknap Street Fort Worth 76111  20 Sendera Ranch Elementary School 1216 Diamond Back Lane Fort Worth 76052  21 Southside Community Center 959 East Rosedale Street Fort Worth 76104  22 Southwest Sub‐Courthouse 6551 Granbury Road Fort Worth 76133  23 Summerglen Branch Library 4205 Basswood Boulevard Fort Worth 76137  24  Tarrant County Election Center   Main Early Voting Site   (Principal sitio de votación adelantada)  2700 Premier Street Fort Worth 76111  25 Tarrant County Plaza Building 201 Burnett Street Fort Worth 76102  26 Villages of Woodland Springs  Amenity Center 12209 Timberland Boulevard Fort Worth 76244  27 Worth Heights Community Center 3551 New York Avenue Fort Worth 76110  28 Asia Times Square  2615 W. Pioneer Parkway  (Corner Pioneer Pkwy and Great Southwest  Pkwy)  Grand Prairie 75051  Town Council Page 112 of 522 Meeting Date: Monday, April 7, 2014 EARLY VOTING FOR MAY 10, 2014   (VOTACIÓN ADELANTADA DE 10 DE MAYO DE 2014)  JOINT GENERAL AND SPECIAL ELECTIONS  (ELECCIÓNES GENERALES Y ESPECIALES CONJUNTAS)   3/21/2014 10:54:41 AM   List of Early Voting locations continued   (Lista de casetas de votación adelantada continuó)        Location  (Ubicación)  Address  (Dirección)  City  (Ciudad)  Zip Code  (Código  postal)  29 Lake Park Operations Center 5610 Lake Ridge Parkway Grand Prairie 75052  30 Grapevine Convention Center 1209 S. Main Street Grapevine 76051  31 Haltom City Northeast Center 3201 Friendly Lane Haltom City 76117  32 Haslet Public Library 100 Gammil Street Haslet 76052  33 Hurst Recreation Center 700 Mary Drive Hurst 76053  34 Keller Town Hall 1100 Bear Creek Parkway Keller 76248  35 Mansfield Sub‐Courthouse 1100 East Broad Street Mansfield 76063  36 Richland Hills Community Center 3204 Diana Drive Richland Hills 76118  37 River Oaks City Hall 4900 River Oaks Boulevard River Oaks 76114  38 John M. Tidwell Middle School 3937 Haslet‐Roanoke Road Roanoke 76262  39 Eagle Mountain‐Saginaw ISD Administration  Building 6 – Training Room 1200 Old Decatur Road Saginaw 76179  40 City of Sansom Park City Hall 5705 Azle Avenue Sansom Park 76114  41 Southlake Town Hall 1400 Main Street Southlake 76092  42 Watauga City Hall 7105 Whitley Road Watauga 76148  Temporary Location with Special Days and Hours  (Lista de Caseta Temporal con Días y Horas Especiales)    April (Abril) 29 – 30  Tuesday – Wednesday (Martes – Miércoles)  8:00 a.m. – 5:00 p.m.  May (Mayo) 1    Thursday (Jueves)     8:00 a.m. – 5:00 p.m.     Application for a Ballot by Mail may be downloaded from our website:  www.tarrantcounty.com/elections   (Solicitud para Boleta por Correo se puede descargar de nuestro sitio web): www.tarrantcounty.com/elections     Information by phone: Tarrant County Elections Administration, 817‐831‐8683   (Información por teléfono): (Administración de Elecciones del Condado de Tarrant 817‐831‐8683)    Applications for a Ballot by Mail must be submitted between March 11, 2014 and May 1, 2014 by mail or fax to:  (Solicitudes para una Boleta por Correo pueden ser sometidas entre el 11 de Marzo de 2014 y 1 de Mayo de 2014 por correo o fax a):      Early Voting Clerk (Secretario De Votación Adelantada)    PO Box 961011    Fort Worth TX 76161‐0011  Fax:  817‐831‐6118 A  UTA – University of Texas at Arlington  Maverick Activities Center 500 W. Nedderman Drive Arlington 76019  Town Council Page 113 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1072-T Name: Status:Type:Agenda Item Consent Agenda File created:In control:3/31/2014 Town Council On agenda:Final action:4/7/2014 Title:Consider and take appropriate action regarding an agreement between the Town and GVT.US, LTD (Subcontractor of Intermedix) to provide the Town with past due ambulance collections for out-of- district emergency services customers; and authorizing the Mayor or her designee to execute all necessary documents. Attachments:Staff Report - Master Services Agreement for GVT Services.pdf Master Services Agreement - for GVT Services.pdf Intermedix Agreement.pdf Ambulance Receivables Analysis.pdf GVT ( Intermedix) Brochure.pdf Sample Collection Notice from GVT.pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding an agreement between the Town and GVT.US, LTD (Subcontractor of Intermedix) to provide the Town with past due ambulance collections for out-of-district emergency services customers; and authorizing the Mayor or her designee to execute all necessary documents. Town Council Page 114 of 522 Meeting Date: Monday, April 7, 2014 To: Mayor and Town Council From: Steven Glickman, Director of Finance CC: Mike Slye, Town Manager Tammy Ard, Town Secretary Re: Agreement with GVT for Services Town Council Meeting, April 7, 2014 Agenda Item: Consider and take appropriate action regarding an agreement between the Town and GVT.US, LTD (Subcontractor of Intermedix) to provide the Town with past due ambulance collections for out-of-district emergency services customers; and authorizing the Mayor or her designee to execute all necessary documents. Explanation: The Town is currently not sending any past due ambulance accounts for out-of-district customers to collections. This agreement would allow GVT to attempt to collect those past due accounts for out-of-district customers thereby increasing Town revenue and reducing the amount of receivables on the Town’s general ledger. Additionally, CFAB has met and recommends to Council that the Town maintain three years of ambulance accounts on its books and write off all accounts prior to Fiscal Year 2011 as uncollectible. The total initial write-off of out-of-district ambulance accounts would be $92,797, with subsequent annual write offs expected to range from $15,000 to $25,000 per year. The Town began service with Intermedix in Fiscal Year 2007 and since that time no accounts have been written off as uncollectible. Attachments:  Master Services Agreement for GVT Services  Intermedix Agreement  Ambulance Receivables Analysis Presentation from the Citizen Financial Advisory Board (CFAB)  GVT (Intermedix) Brochure  Sample Collection Notice from GVT Town Council Goals: Goal #1: Safe and secure community. Maintain low crime rate Increase citizen awareness and involvement in crime prevention Provide superior Emergency Services Town Council Page 115 of 522 Meeting Date: Monday, April 7, 2014 Improve data security Goal #2: Business-Friendly Economic Development Create effective working relationships with businesses and developers Retain / Develop existing businesses Promote new commercial opportunities Goal # 3: Strong Partnerships and Community Involvement Create a positive regional identity Foster a well informed community Forge collaborative relationships with other governmental and public entities Support citizen volunteer opportunities Promote recreational / active lifestyle opportunities for all ages Goal #4: Healthy, Picturesque, and Environmentally Sound Promote recreational / active lifestyle opportunities for all ages Maintain neat and tidy appearance Improve property maintenance standards and code enforcement Develop / Enhance environmental and sustainability standards and programs Goal #5: Financial and Operational Stewardship Develop, recognize, and retain quality staff Implement strong financial management standards Improve effectiveness and efficiency of operational processes Maintain / Improve infrastructure and assets Provide cost-effective services Deliver responsible customer service Recommendation: Staff recommends Council approval of the agreement with GVT to collect past due ambulance receivables for out-of-district customers and Council approval of the amount of time the Town will keep ambulance accounts on its books at three years, per recommendation by the Citizen Financial Advisory Board (CFAB). Town Council Page 116 of 522 Meeting Date: Monday, April 7, 2014 MASTER SERVICES AGREEMENT FOR GVT SERVICES This Master Services Agreement for GVT Services (the "Agreement") is by and between GVT.US, LTD. (“GVT”), a Texas limited partnership which maintains its principal office at 5300 Memorial Drive, Suite 940, Houston, Texas, and the government entity as identified and with the address as set out on the signature page hereto (“Client”). GVT and Client are sometimes collectively referred to herein as “Parties.” This Agreement shall be effective as of the effective date set out on the signature page hereto. WHEREAS, Client bills the public for various charges and, as a result of such bills, from time to time faces a backlog of overdue accounts receivable; and WHEREAS, GVT is willing to perform services in accordance with the provisions of this Agreement; and NOW, THEREFORE, in consideration of the mutual covenants set forth herein and intending to be legally bound, the Parties hereto agree as follows: ARTICLE I Definitions For purposes of this Agreement, the following terms shall have the following meanings: “Accounts Assigned for Collection” shall refer to the accounts assigned to GVT under Article III of this Agreement. “Application” shall refer to a secure, web-based payment collection application that Client may use to access account information created by GVT: (a) with regard to fines and/or tickets that Client has issued to persons accused of violations of law, and/or (b) with regard to other Obligations. “Collection Fees” shall refer to: (1) fees that GVT charges Client for the collection of Obligations, as described on Exhibit A attached hereto, and (2) fees authorized by a Collection Statute for collection of a particular type of Obligation. In the event that a Collection Statute applies to GVT’s collection of an Obligation, GVT’s fee shall be based on the Collection Statute. “Collection Statute” shall refer to any applicable law (including but not limited to federal, state, county, and municipal law) that provides that services of a privately owned collection company for collection of a fine or an overdue receivable owed to a government agency or government entity may be charged to the Debtor in addition to the amount of the fine or overdue receivable. “Debtors” shall refer to individuals and entities that are liable for Obligations. Town Council Page 117 of 522 Meeting Date: Monday, April 7, 2014 “Obligations” shall refer to amounts owed by Debtors to Client (including but not limited to amounts owed for fines, fees, court costs, forfeited bonds, court-ordered restitution, parking tickets, traffic citations and other citations, and false alarm penalties or fees), as reflected in accounts that Client places with GVT for collection under the terms of this Agreement. “Past Due Account” shall refer to a fine or other debt payable to Client that is considered past due by the Client. ARTICLE II Responsibilities of GVT 2.1 Compliance with Law. Activities undertaken by GVT under this Agreement will be in compliance with applicable federal, state and local law. If GVT, in the course of performing its duties hereunder, receives Protected Health Information (“PHI”) from Client, then GVT will handle such PHI in accordance with the attached Exhibit B, which is incorporated by reference into this Agreement. 2.2. Provision of an Application. GVT shall provide Client access to Application. Application shall be accessible via an Internet connection and will provide Client with electronic access to account records created by GVT concerning Obligations; GVT’s attempts to collect payment for such Obligations; and any funds that GVT has received from Debtors to cover such Obligations. 2.3 Collection of Obligations. During the Term (as defined in Article 4.1 below), GVT shall have the exclusive right to bill and collect the Past Due Accounts and other Obligations and shall be entitled to calculate the Collection Fees due on any Obligations and to receive and retain all Collection Fees paid on the Obligations. GVT will make reasonable efforts to collect the full amount due to Client on the Obligations, as well as the Collection Fee. To the extent allowed by applicable law, GVT is authorized to enter into payment plans described in Exhibit C with Debtors. GVT may report Debtors to credit bureaus in accordance with the “Credit Bureau Reporting Procedure” in Exhibit D. 2.4 Suspension or Termination of Collection Efforts. In the event that active collection efforts by GVT with respect to any Past Due Account or other Obligation have been unsuccessful for 180 days or more, the Debtor has refused to pay, or the Debtor is known to be deceased, incarcerated, or institutionalized, GVT shall have the option, at its discretion, of terminating collection efforts with respect to such account and may close the account on the basis that it is an uncollectible debt. 2.5 Training. Upon written request from Client, GVT will provide Client personnel with an annual, on-site or web-based training class on the use of the Application at a time determined to be mutually convenient to the Parties. Town Council Page 118 of 522 Meeting Date: Monday, April 7, 2014 ARTICLE III Responsibilities of Client 3.1 Referral of Past Due Accounts to GVT. Client hereby refers to GVT for collection the accounts generally described on Exhibit E (the “Accounts Assigned for Collection”). 3.2 Provision of Data. Within two weeks after this Agreement is executed by the Parties, Client will provide GVT with a spreadsheet or other readable data file describing all Obligations (“Account Data”). The Account Data shall include the Debtor’s name, address, Client-assigned account number, date of birth, social security number, and telephone number(s); if available, the email address of the Debtor; the amount of each Obligation owed by the Debtor; the date that the Obligation was incurred; a brief description of the Obligation; the date and amount of any partial payment made by Debtor on each Obligation, and by whom any partial payment was made; a brief description of any information known to Client with regard to whether the Obligation might be covered by insurance; and a description of any attempts to collect the Obligation from an insurer (including the names and titles of persons contacted and the dates and form of the contact). After the initial Account Data is provided, Client shall provide GVT with updated information concerning the Obligations on a regular basis, but not less frequently than every two weeks. Client shall provide this information to GVT by utilizing the Application. Client shall reasonably cooperate with GVT in the event that GVT subsequently determines that it needs additional Account Data from Client as to particular Obligations. 3.3 Obligation to Remit Collection Fees. Once an account becomes a Past Due Account, GVT shall have the exclusive right to the Collection Fees for such Past Due Account, even if the Debtor pays the Obligation and the associated Collection Fee directly to Client. Any such Collection Fee that Client receives for Past Due Accounts shall be remitted to GVT no later than the fifth day of the month immediately following the month in which Client receives the Collection Fee. Client shall also, no later than the tenth day of each month, provide GVT with a monthly report setting forth an accounting of all Collection Fees within the scope of this paragraph that Client received during the immediately preceding month. 3.4 Obligation to Safeguard and Protect Application. Client shall safeguard and protect from unauthorized use the passwords allowing Client electronic access account records maintained on any server of GVT. 3.5 Intentionally Omitted. 3.6 Rebilling in the Event That Applicable Insurance Is Discovered. In the event that GVT discovers that a particular Obligation may be covered in whole or in part by insurance, GVT shall provide Client, or Client’s EMS billing agency, with the information that is needed to re-bill the charges to the insurance company. he fact that Town Council Page 119 of 522 Meeting Date: Monday, April 7, 2014 Client re-bills charges to an insurer under this paragraph will not impair GVT’s right to a Collection Fee in the event that the insurer or anyone else pays such charges. 3.7 Collection Fees Received by Client after Term Ends. For 360 days following the end of the Term, Client shall remit to GVT any Collection Fees paid on any Obligation: (a) that became Past Due Accounts prior to the end of the Term; and (b) for which GVT sent a bill to or contacted the Debtor prior to the end of the Term. Any such Collection Fees that Client receives following the end of the Term shall be remitted to GVT no later than the tenth day of the month immediately following the month in which Client receives the Collection Fees. 3.8. Client’s Exercise of Due Care with Regard to Accounts Assigned for Collection. Client represents that, to the best of its knowledge, information and belief, each and every one of the Accounts Assigned for Collection represents a valid and unpaid debt owed by a Debtor. Client will notify GVT promptly in the event that Client learns that any of the Accounts Assigned for Collection does not represent a valid debt. ARTICLE IV Term and Termination 4.1 Term. The initial term of this Agreement shall be for a period of four years unless earlier terminated pursuant to Section 4.2 (such initial term, together with all extensions thereof, shall be referred to herein as the “Term”). Unless notice of termination is given 90 days prior to the end of the initial term by a Party, at the end of the initial term, this Agreement shall be automatically extended for an additional one- year period. After the first one-year extension, the Agreement shall automatically renew annually unless a 90-day notice of termination is given prior to the end of the one-year extension. 4.2 Termination on Default. A Party may terminate this Agreement if (a) the other Party is in default under this Agreement and (b) the default is not cured within 60 days after such Party sends notice of default to the other Party. Any notice of default shall specify in reasonable detail the nature of the default. 4.3 Termination on Assignment. Client may terminate this Agreement during the 30 day notice period provided by GVT for assignment of the Agreement, pursuant to section 8.4, with 10 days prior written notice to GVT. ARTICLE V Audit 5.1 Accurate Books and Records. During the Term and for a period of three (3) years thereafter, each Party agrees to maintain accurate books and records associated with the billing and collections made on accounts governed by this Agreement. Town Council Page 120 of 522 Meeting Date: Monday, April 7, 2014 5.2 Right to Audit. Upon reasonable written notice, Client may audit GVT’s books and records, and GVT may audit Client’s books and records, insofar and only insofar as such books and records relate or pertain directly to this Agreement. Such audit shall be conducted at the office of the Party being audited, shall be during normal business hours, and shall be at the sole cost and expense of the Party conducting the audit, subject to Section 5.3. Reasonable written notice, as used in this section, shall be defined as at least 14 days notice prior to the date of the anticipated audit. 5.3 Penalty for Underpayment. If an audit reveals that a Party has failed to pay any portion of any amount due or payable under this Agreement and such amount is in excess of $20,000 in an annual period, the Party being audited shall pay the auditing Party the reasonable and full cost of the audit not to exceed $5,000 and the full amount of the underpayment plus interest at the rate of ten percent (10%) per annum from the date(s) of nonpayment. If an audit reveals that a Party has failed to pay any portion of any amount due or payable under this Agreement and such amount is less than $20,000 in an annual period, the Party conducting the audit shall pay for the audit and the Party being audited shall pay the full amount of the underpayment plus interest at the rate of ten percent (10%) per annum from the date(s) of nonpayment. A Party conducting an audit shall submit the written findings of the auditor to the Party being audited within 30 days of the audit being completed. The Party being audited shall be allowed 45 days from receipt of a copy of the auditor’s findings to review the audit for accuracy and shall send notice of disagreement of any findings within 60 days from receipt of a copy of the auditor’s findings. Any amount that is disputed shall not be owed until the dispute is resolved by agreement of the Parties. For purposes of this Article 5.3, “annual periods” shall start on each anniversary date of this Agreement and amounts due by either Party to the other Party as the result of an audit shall be paid in full within 90 days of a final determination of the amounts owed. ARTICLE VI Standard of Care 6.1 Warranties. GVT warrants that its services shall be performed by personnel possessing competency consistent with applicable industry standards. No other representation, express or implied, and no warranty or guarantee are included or intended in this Agreement, or in any report, opinion, deliverable, work product, document or otherwise. Furthermore, no guarantee is made as to the efficacy or value of any services performed or software developed. THIS SECTION SETS FORTH THE ONLY WARRANTIES PROVIDED BY GVT CONCERNING THE EQUIPMENT, SERVICES AND RELATED WORK PRODUCT. THIS WARRANTY IS MADE EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY IMPLIED Town Council Page 121 of 522 Meeting Date: Monday, April 7, 2014 WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY OR OTHERWISE. ARTICLE VII Notices 7.1 Notice Procedure. All notices given under this Agreement shall be in writing, sent by commercial courier or by certified mail, and shall be deemed given when delivered to the addresses set out on the signature page hereto. 7.2 Changes of Address. Any Party, by notice given in accordance with this section to the other Party, may revise its notice address or addresses. ARTICLE VIII Miscellaneous 8.1 Severability. Should any part of this Agreement for any reason be declared invalid, such decision shall not affect the validity of any remaining provisions, which remaining provisions shall remain in full force and effect as if this Agreement had been executed with the invalid portion thereof eliminated. 8.2 Modification and Waiver. Waiver of a breach of this Agreement by either Party shall not be considered a waiver of any subsequent breach. This Agreement may only be amended by an agreement in writing executed by the Parties. Unless otherwise indicated, a definition specified in this Agreement applies in both the singular and plural versions of the word defined. 8.3 Independent Contractor. GVT is an independent contractor to Client. Nothing contained in this Agreement shall be construed to create any partnership, joint venture or joint enterprise between the Parties. 8.4 Assignment. The Agreement is not assignable or transferable by Client. This Agreement is assignable by GVT upon 30 days prior written notice to Client. Client can choose to terminate the Agreement at this time, pursuant to Section 4.3. 8.5 Disputes. The Parties recognize that disputes arising under this Agreement are best resolved at the working level by the managers directly involved. Parties are encouraged to be imaginative in designing a mechanism and procedures to resolve disputes at the working level. Such efforts shall include the referral of any remaining issues in dispute to higher authority within each participating Party's organization for resolution. Failing resolution of conflicts at the organizational level, the Parties agree that any remaining conflicts arising out of or relating to this Agreement shall be submitted to non-binding mediation unless both Parties agree that such mediation would be futile. If the dispute is not resolved through non-binding mediation, then the Parties may, subject to the other terms of this Agreement, pursue legal remedies. Town Council Page 122 of 522 Meeting Date: Monday, April 7, 2014 8.6 Section Headings. Titles and headings of sections in this Agreement are for convenience of reference only and shall not affect the construction of any provision of this Agreement. 8.7 Representations; Counterparts. Each person executing this Agreement on behalf of a Party represents and warrants that such person is duly and validly authorized to do so on behalf of such Party, with full right and authority to execute this Agreement and to bind such Party with respect to all of its obligations hereunder. This Agreement may be executed (by original, emailed, or telecopied signature) in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute but one and the same instrument. 8.8 Cooperation. Client will cooperate with GVT in taking actions and executing documents, as appropriate, to achieve the objectives of this Agreement. Client agrees that GVT’s performance is dependent on Client's timely and effective cooperation with GVT. 8.9 Governing Law and Construction. This Agreement will be governed by and construed in accordance with the laws of Texas, without regard to the principles of conflicts of law. Any legal action related to this Agreement brought by a Party against the other Party shall be filed in Texas. The language of this Agreement shall be deemed to be the result of negotiation between the Parties and shall not be construed strictly for or against any Party. 8.10 Venue. This Agreement shall be performable in Denton County, Texas and any court action arising out of or in connection with this Agreement shall be brought solely in Denton County, Texas. 8.11 Entire Agreement. This Agreement (including the attached exhibits) states the entire agreement between the Parties and supersedes all previous contracts, proposals, oral or written, and all other communications between the Parties respecting the subject matter hereof, and supersedes any and all prior understandings, representations, warranties, agreements or contracts (whether oral or written) between the Parties respecting the subject matter hereof. 8.12 Force Majeure. A Party shall not be responsible for delays or failures (including any delay by GVT to make progress in the performance of any services to be provided under this Agreement) if such delay arises out of causes beyond its control. Such causes may include, but are not restricted to, acts of God or of the public enemy, fires, floods, earthquakes, severe weather, epidemics, quarantine restrictions, riots, strikes, electrical outages, computer or communications failures, and acts or omissions of subcontractors or third parties. 8.13 Binding Nature of the Agreement. This Agreement is binding upon the legal representatives, successors and assigns of the Parties hereto, subject to Section 8.4. Town Council Page 123 of 522 Meeting Date: Monday, April 7, 2014 SIGNED this 7th day of April, 2014, and EFFECTIVE the ______ day of _____________________, 2014. [Client] Client Name: Town of Trophy Club Signature: Printed Name: Connie White Title: Mayor Address for Notices: 100 Municipal Drive Trophy Club, TX 76262 GVT.US, LTD. By Its General Partner GVT.US GP, LLC Signature: Printed Name: ________________________________________ Title: Address for Notices: 5300 Memorial Drive, Suite 940 Houston, TX 77007 With a copy to: PO Box 782449 San Antonio, TX 78278-2449 Town Council Page 124 of 522 Meeting Date: Monday, April 7, 2014 EXHIBIT A FEE SCHEDULE FOR COLLECTION OF PAST DUE ACCOUNTS EMS and/or Medical Accounts (Out of District Customers Only): 20% of the amount collected Town Council Page 125 of 522 Meeting Date: Monday, April 7, 2014 EXHIBIT B OBLIGATIONS OF COVERED ENTITY AND BUSINESS ASSOCIATE UNDER THE HIPAA PRIVACY RULES The obligations set forth in this Exhibit shall apply only if the following two conditions are met: (1) the Client named in the contract to which this Exhibit is attached (the “Contract”) is a “Covered Entity” for purposes of the HIPAA Privacy Rule and (2) the Parties expect that GVT.US, LTD, in performing its duties under the Contract, will receive Protected Health Information (“PHI”) from the Client. If those two conditions are not met, the provisions of this Exhibit shall have no force and effect. In this Exhibit, for convenience, the Client is referred to as Covered Entity and GVT.US, LTD is referred to as Business Associate. 1. Definitions. (a) “Breach” shall mean the unauthorized acquisition, access, use, or disclosure of Protected Health Information that compromises the security or privacy of such information, except where an unauthorized person to whom such information is disclosed would not reasonably have been able to retain such information. In accordance with 45 C.F.R. § 164.402(2), “Breach” shall not include: (i) any unintentional acquisition, access, or use of PHI by an employee or individual acting under the authority of Covered Entity or Business Associate, as long as such acquisition, access, or use was made in good faith and within the course and scope of the employment or other professional relationship of such employee or individual with unintentional acquisition, access, or use of PHI by an employee or individual acting under the authority of Covered Entity or Business Associate and such information is not further acquired, accessed, used, or disclosed by any person; or (ii) an inadvertent disclosure from an individual who is otherwise authorized to access PHI at a facility operated by Covered Entity or Business Associate to another similarly situated individual at the same facility, provided that any such information received as a result of such disclosure is not further acquired, accessed, used, or disclosed by any person. (b) “Contract” shall refer to the Master Services Agreement for GVT Services to which this Exhibit is appended. (c) “Designated Record Set” shall mean a group of records maintained by or for Covered Entity that is (i) the medical records and billing records about individuals maintained by or for Covered Entity, (ii) the enrollment, payment, claims adjudication, and case or medical management record systems maintained by or for a health plan; or (iii) used, in whole or in part, by or for Covered Entity to make decisions about individuals. (d) “Electronic PHI” shall have the same meaning as the term “electronic protected health information” in 45 C.F.R. § 160.103. Town Council Page 126 of 522 Meeting Date: Monday, April 7, 2014 (e) “HIPAA Rules” means the collective privacy, transaction and code sets, and security regulations promulgated pursuant to the Health Insurance Portability and Accountability Act, as codified at 45 C.F.R. Parts 160, 162 & 164. (f) “HITECH Standards” means the privacy, security and security Breach notification provisions applicable to a Business Associate under Subtitle D of the Health Information Technology for Economic and Clinical Health Act (“HITECH”), which is Title XIII of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5), and any regulations promulgated thereunder. (g) “Individual” shall have the same meaning as the term “individual” in 45 C.F.R. § 160.103 and shall include a person who qualifies as a personal representative in accordance with 45 C.F.R. § 164.502(g). (h) “Protected Health Information” or “PHI” shall have the same meaning as the term “protected health information” in 45 C.F.R. § 160.103, limited to the information created or received by Business Associate from or on behalf of Covered Entity. (i) “Privacy Rule” shall mean the Standards for Privacy of Individually Identifiable Health Information at 45 C.F.R. Part 160 and 45 C.F.R. Part 164, Subpart A and Subpart E, as they exist now or as they may be amended. (j) “Required by Law” shall have the same meaning as the term “required by law” in 45 C.F.R. § 164. 103. (k) “Secretary” shall mean the Secretary of the Department of Health and Human Services or his designee. (l) “Security Incident” shall have the same meaning as “security incident” in 45 C.F.R. § 164.304. (m) “Security Standards” shall mean the Security Standards, 45 C.F.R. Part 160 and 45 C.F.R. Part 164, Subpart A and Subpart C, as they exist now or as they may be amended. (n) Terms used, but not otherwise defined, in this Exhibit shall have the same meaning as those terms in the HIPAA Rules and the HITECH Standards. 2. Basic Obligations of Business Associate. If, and to the extent, and for so long as, required by the HIPAA Rules, Business Associate will appropriately safeguard all Covered Entity PHI. Business Associate understands that it is directly subject to the requirements of the HIPAA Rules pertaining to various business associate safeguards, including but not limited to those limiting use and disclosure of PHI; to HIPAA regulations pertaining to security of Electronic PHI, including those set forth at 45 C.F.R §§ 164.308, 164.310, 164.312, and 164.316; and to the HITECH Standards. Business Associate shall comply with such regulations and standards. 3. Duties of Business Associate. Without limiting the provisions of Section 2 above, Business Associate shall: Town Council Page 127 of 522 Meeting Date: Monday, April 7, 2014 (a) Use or disclose Covered Entity PHI solely to perform its obligations on behalf of or to benefit Covered Entity as set forth in the Contract and use Covered Entity PHI only as follows: (i) as specifically permitted or required by this Exhibit, or (ii) as Required by Law. (b) Develop, maintain and use appropriate administrative and technical safeguards to prevent the use or disclosure of Covered Entity PHI other than as provided for by this Exhibit. Business Associate shall implement and maintain written policies and procedures to safeguard Covered Entity PHI. (c) Ensure that any agents, including subcontractors, to whom Business Associate provides Covered Entity PHI, agree to the same restrictions and conditions that apply to Business Associate through this Exhibit with respect to such information. (d) Provide access at the request of the Covered Entity or an Individual to Covered Entity PHI maintained in a Designated Record Set, or as directed by Covered Entity, to the individual subjects thereof, for the purposes of inspection and copying, to the extent required by 45 C.F.R. § 164.524 and any subsequent legislation or guidance regarding an Individual’s right to access Covered Entity PHI, including, but not limited to, the requirements of Section 13405 of ARRA and the regulations thereunder. (e) Make Covered Entity PHI maintained in a Designated Record Set available for amendment by the individual subject thereof and upon written notice from Covered Entity, incorporate any such amendments to Covered Entity PHI, to the extent required by 45 C.F.R. § 164.526 and any subsequent legislation or guidance regarding an individual’s right to amend Covered Entity PHI. (f) Document such disclosures of Covered Entity PHI and information relating to the disclosures of Covered Entity PHI as would be required for Covered Entity to respond to a request by an individual for an accounting of disclosures of Covered Entity PHI in accordance with 45 C.F.R. § 164.528 and any subsequent legislation or guidance regarding an individual’s right to an accounting of disclosures, including, but not limited to, the requirements of Section 13405 of ARRA and the regulations thereunder. (g) Make available to Covered Entity the information documented by Business Associate in accordance with Section 3(f) hereof, so as to enable Covered Entity to provide an individual subject with an accounting of disclosures of the subject’s Covered Entity PHI in accordance with 45 C.F.R. § 164.528 and any subsequent legislation or guidance regarding an Individual’s right to an accounting of disclosures, including, but not limited to, the requirements of Section 13405 of ARRA and the regulations thereunder. (h) Permit an Individual to make a reasonable request that Covered Entity PHI relating to the individual be supplied at alternative locations and/or by alternative means, or to make a request for restriction of the use and/or disclosure of Covered Entity PHI in accordance with 45 CFR § 164.522 and any subsequent legislation or guidance regarding an individual’s right request restriction or confidential communication of Covered Entity PHI, including, but not limited to, the requirements of Section 13405 of ARRA and the regulations thereunder. Business Associate agrees to comply with the requirements of Section 13405(a) of ARRA regarding requests by individuals that a covered entity restrict the disclosure of PHI of the Individual. Except to the extent a request must be granted under Section 13405(a) of ARRA, Business Town Council Page 128 of 522 Meeting Date: Monday, April 7, 2014 Associate is prohibited from agreeing to any restriction on the use or disclosure of Covered Entity PHI or any alternative communication of Covered Entity PHI requested by an Individual without Covered Entity’s prior approval. (i) Make Business Associate’s internal practices, books and records relating to the use and disclosure of Covered Entity PHI available to the Secretary for purposes of determining Covered Entity’s compliance with the HIPAA Rules, subject to attorney-client or other applicable legal privileges. (j) At termination of the Contract, if commercially reasonable, destroy or return to Covered Entity, all Covered Entity PHI that Business Associate (and any of agents, including subcontractors) still maintains in any form and retain no copies of Covered Entity PHI, and upon request of Covered Entity, Business Associate will certify in writing to Covered Entity that it has so returned or destroyed all such Covered Entity PHI. If such destruction or return is not commercially reasonable as to all or some of Covered Entity PHI, Business Associate shall extend the protection of this Exhibit to such Covered Entity PHI and limit further uses and disclosures to those purposes that do not make the destruction or return of such Covered Entity PHI commercially reasonable. (k) Not, except for payments from Covered Entity for services performed pursuant to the Contract, directly or indirectly receive remuneration in exchange for Covered Entity PHI. (l) Not use or disclose Covered Entity PHI for (1) research purposes without first receiving prior written approval from Covered Entity and obtaining the necessary authorization from the affected individuals or (2) marketing purposes. (m) Comply with the Interim Final Rule entitled “Breach Notification for Unsecured Protected Health Information” dated August 24, 2009, and any subsequent modifications to such rule and, except as provided in 45 C.F.R. § 164.412, report promptly to the Covered Entity, and, in any event, within 60 days after discovery (as defined in 45 C.F.R. § 164.410) of any breach of Unsecured Protected Health Information (as defined in 45 C.F.R. § 164.402) by Business Associate or any of its officers, directors, employees, subcontractors or agents, and promptly provide to the Covered Entity (i) a list of all individuals whose unsecured protected health information has been, or is reasonably believed by Business Associate to have been, accessed, acquired, used, or disclosed during such breach, and (ii) any other available information that the Covered Entity is required to include in notifications to such individuals pursuant to 45 C.F.R. § 164.404(c); (n) In the event of any breach referred to in Section 3(m) above, cooperate with the Covered Entity to notify, at Business Associate’s expense, (i) individuals whose unsecured protected health information has been, or is reasonably believed by Business Associate to have been, accessed, acquired, used, or disclosed, and (ii) the media, as required pursuant to 45 C.F.R. § 164.406, if the legal requirements for media notification are triggered by the circumstances of such breach. (o) Business Associate agrees to mitigate, to the extent practicable, any harmful effect that is known to Business Associate of a use or disclosure of Covered Entity PHI by Business Associate in violation of this Exhibit or the Contract. Town Council Page 129 of 522 Meeting Date: Monday, April 7, 2014 (p) Within fifteen (15) business days of a request by Covered Entity, Business Associate shall provide access to Covered Entity to PHI in a Designated Record Set in order to meet the requirements under 45 C.F.R. § 164.524. If Business Associate receives a request directly from an Individual, or if requested by the Covered Entity that access be provided to the Individual, Business Associate shall provide access to the Individual to PHI in a Designated Record Set within thirty (30) days in order to meet the requirements under 45 C.F.R. § 164.524. 4. Management and Administration of Business Associate. (a) Except as otherwise specifically limited in this Exhibit or the HIPAA Rules, Business Associate may disclose Covered Entity PHI for the proper management and administration of Business Associate, provided that disclosures are Required by Law; or Business Associate obtains reasonable assurances from the person to whom the information is disclosed that it will remain confidential and used or further disclosed only as required by law or for the purpose for which it was disclosed to the person, and the person notifies Business Associate of any instances of which it is aware in which the confidentiality of the information has been breached. (b) Except as otherwise limited in this Exhibit, Business Associate may use Covered Entity PHI to provide Data Aggregation (as such term is defined in HIPAA) services to Covered Entity as permitted by 45 C.F.R. § 164.504(e)(2)(i)(B). (c) Business Associate may use Covered Entity PHI to report violations of law to appropriate federal and state authorities to the extent permitted by the HIPAA Rules or otherwise. 5. Permissible Requests by Covered Entity. (a) Covered Entity shall not request that Business Associate use or disclose Covered Entity PHI in any manner that would not be permissible under the HIPAA Rules if done by Covered Entity, except as specifically set forth in Section 3 of this Contract; and (b) In furnishing Covered Entity PHI to Business Associate pursuant to the Contract, Covered Entity shall disclose only the minimum necessary Covered Entity PHI, in accordance with Section 13405(b) of ARRA, any regulations issued thereunder, and the HIPAA Rules. To the extent the Covered Entity requests Business Associate to disclose Covered Entity PHI to Business Associate, such request shall be for only the minimum necessary Covered Entity PHI for the accomplishment of Covered Entity’s purpose. The limitations set forth in this paragraph shall not apply to the disclosures (as described in 45 C.F.R. § 164.502(b)(1)) to which the “minimum necessary” standard does not apply. 6. Electronic Data Interchange. Business Associate represents to the Covered Entity that it is in compliance with the standards for electronic data interchange transactions promulgated under HIPAA at 45 C.F.R. Part 162, as such may be amended from time to time (“HIPAA EDI Regulations”). As to the services to be provided under the Contract, Business Associate represents that it is (i) capable of transmitting and receiving any transactions that Business Associate performs on behalf of the Covered Entity that are subject to HIPAA EDI Regulations as Standard Transactions (as such term is defined in the HIPAA EDI Regulations at 45 C.F.R. §162.103); and (ii) conducts only as Standard Transactions any electronic transactions Town Council Page 130 of 522 Meeting Date: Monday, April 7, 2014 that Business Associate conducts, on behalf of the Covered Entity, with other covered entities (as such term is defined in regulations promulgated under HIPAA at 45 C.F.R. § 160.103). 7. Compliance with Security Rule. In accordance with regulations promulgated under HIPAA for the protection of PHI that is transmitted or maintained in electronic media (the “Security Rule”), Business Associate represents the following: (a) As required by the HIPAA Security Rule, it has implemented administrative, physical and technical safeguards that reasonably and appropriately protect the confidentiality, integrity and availability of the electronic PHI that it creates, receives, maintains or transmits on behalf of the Covered Entity; (b) It will ensure that any agent, including a subcontractor, to whom it provides such PHI agrees to implement reasonable and appropriate safeguards to protect the PHI; (c) It will report to the Covered Entity any Security Incident of which it becomes aware; (d) It has implemented, and required its agents and subcontractors to timely implement, administrative, physical, and technical safeguards in accordance with 45 C.F.R §§ 164.308, 164.310, 164.312, and 164.316 of the HIPAA regulations and standards and guidelines issued by the Department of Health and Human Services pursuant to Section 13401(c) of ARRA; and (e) In accordance with the Security Rule, it has designated a security officer. 8. Compliance with the HITECH Standards. Business Associate shall comply with the HITECH Standards, including, but not limited to: (i) compliance with the requirements regarding minimum necessary under HITECH § 13405(b); (ii) requests for restrictions on use or disclosure to health plans for payment or health care operations purposes when the provider has been paid out of pocket in full consistent with HITECH § 13405(a); (iii) the prohibition of sale of PHI without authorization unless an exception under HITECH § 13405(d) applies; (iv) the prohibition on receiving remuneration for certain communications that fall within the exceptions to the definition of marketing under 45 C.F.R. § 164.501 unless permitted by this Exhibit and Section 13406 of HITECH; (v) the requirements relating to the provision of access to certain information in electronic access under HITECH § 13405(e); (vi) each of the Standards and Implementation Specifications of 45 C.F.R. § 164308 (Administrative Safeguards), 164.310 (Physical Safeguards), 164.312 (Technical Safeguards) and 164.316 (Policies and Procedures and Documentation Requirements); and (vii) the requirements regarding accounting of certain disclosures of PHI maintained in an Electronic Health Record under HITECH § 13405(c) to the extent that Business Associate discloses any Covered Entity PHI maintained in an Electronic Health Record on behalf of the Covered Entity pursuant to this Exhibit. 9. Termination. Without limiting Covered Entity’s rights or remedies provided in the Contract, or available under applicable law (including but not limited to the HIPAA Rules ) or in equity, Covered Entity may terminate the Contract immediately upon notice, without penalty or recourse to Covered Entity, if Covered Entity determines, in its sole discretion, that Business Associate has breached any material term of this Exhibit and has failed to cure such breach within thirty (30) days (or within a reasonable time thereafter or in the event the breach is Town Council Page 131 of 522 Meeting Date: Monday, April 7, 2014 of a type that cannot reasonably be cured within thirty days, provided that Business Associate has commenced taking steps to effectuate a cure and thereafter takes reasonable steps to complete the cure within ninety days) of its receipt of Covered Entity’s notice describing the alleged breach with specificity. Business Associate may terminate the Contract in the event that Business Associate becomes aware of Covered Entity’s pattern of activity or practice that constitutes a material breach or violation of the Covered Entity’s privacy obligations under HIPAA and Covered Entity fails to cure the breach or end the violation within thirty days (or within a reasonable time thereafter or, in the event the breach is of a type that cannot reasonably be cured within thirty days), provided that Covered Entity has commenced taking steps to effectuate a cure and thereafter takes reasonable steps to complete the cure within ninety days) of its receipt of Business Associate’s notice describing the alleged breach with specificity. Upon termination of the Contract for any reason, Business Associate, to the extent feasible, shall return or destroy all Covered Entity PHI created or received by Business Associate on behalf of Covered Entity. This provision shall apply to Covered Entity PHI that is in the possession of subcontractors or agents of Business Associate. Business Associate shall retain no copies of the Covered Entity PHI, or, if it is infeasible to return or destroy Covered Entity PHI, protections shall be extended to such information. In the event Business Associate determines that return or destruction is not feasible for any reason, then the provisions of this Exhibit shall continue to apply for so long as such Covered Entity PHI is in Business Associate’s possession. 10. No Rights of Third Parties. This Exhibit pertains solely to the rights of Covered Entity and Business Associate. This Exhibit shall not be construed, interpreted, or deemed to confer any rights whatsoever to any third party. 11. Interpretation. Any ambiguity in this Exhibit shall be resolved in favor of a meaning that permits the Covered Entity and Business Associate to comply with the HIPAA Town Council Page 132 of 522 Meeting Date: Monday, April 7, 2014 EXHIBIT C Payment Plans Obligation Type Maximum Number of Months for Payment Arrangements Medical Debts Notes 36 Settlement of these accounts is authorized by Client. GVT is authorized to accept sixty percent (60%) of the amount due as final payment on an account. Town Council Page 133 of 522 Meeting Date: Monday, April 7, 2014 EXHIBIT D CREDIT BUREAU REPORTING PROCEDURE Reporting debts to credit bureaus is an essential part of GVT.US, LTD’s collection efforts. In compliance with Federal law, GVT.US, LTD may report information on delinquent debts to credit reporting agencies. This can include delinquent and written-off/closed-out debts. In the event that collection efforts have been unsuccessful for 180 days or more, GVT.US, LTD has the option of terminating collection efforts and closing the account on the basis that it is an uncollectible debt. All activities related to an account are reported on a daily basis. Non-activity/non-payment is reported on a monthly basis, at a minimum. Additionally, account activities are reported with a final status code when they are ultimately paid, closed, or transferred. This is accomplished electronically via GVT.US, LTD automated software using the standard Metro 2 format, or required industry standard. All transmission of data is web-based and uses SSL/TLS (Secure Sockets Layer, Transport Layer Security). In the event of credit disputes, GVT.US, LTD utilizes E-Oscar (an automated system developed by the credit bureaus for complete and accurate reporting). E-Oscar provides an online solution for reporting agencies to process Automated Credit Dispute Violations (ACDV’s) and Automated Universal Data forms (AUD’s). In some instances, such as when Debtors RTP (“Refuse To Pay”), are known to be deceased, or are known to be incarcerated, GVT.US, LTD may suspend or cease collection efforts. Town Council Page 134 of 522 Meeting Date: Monday, April 7, 2014 EXHIBIT E GENERAL DESCRIPTION OF ACCOUNTS PLACED FOR COLLECTION UNDER AGREEMENT EMS Accounts – Accounts for medical services provided by Client, in which the client has been invoiced, full payment has not been made on the account, or insurance information has not been obtained. Town Council Page 135 of 522 Meeting Date: Monday, April 7, 2014 T o w n C o u n c i l P a g e 1 3 6 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 3 7 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 3 8 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 3 9 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 4 0 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 4 1 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 4 2 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 4 3 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 4 4 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 4 5 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 4 6 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 4 7 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 4 8 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 4 9 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 5 0 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 5 1 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 5 2 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 5 3 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 5 4 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 5 5 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 5 6 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 5 7 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 5 8 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 5 9 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 6 0 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 6 1 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 6 2 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 6 3 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 6 4 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 6 5 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 6 6 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 6 7 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 6 8 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 6 9 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 1 7 0 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 Town of Trophy Club Ambulance Receivables Analysis Town Council Page 171 of 522 Meeting Date: Monday, April 7, 2014 What does the analysis contain? •Both in-district, out-of-district, and total accounts receivable balances by year. •Projected amounts to be written off according to CFAB action. •Explanation of common practices in writing off accounts receivable, specifically ambulance receivables. •Graphical representations. Town Council Page 172 of 522 Meeting Date: Monday, April 7, 2014 Ambulance A/R Basics •Ambulance receivables are patient accounts that have a balance at fiscal year end. •They are classified as assets on the Town’s balance sheet and statement of net assets. •The asset balance is net of an allowance for doubtful accounts (those over 120 days past due are considered doubtful). •Writing off A/R consists of deeming accounts uncollectible and reducing the total asset and the allowance for doubtful accounts. Town Council Page 173 of 522 Meeting Date: Monday, April 7, 2014 Current Year (FY 2013) Balances A/R Ambulance $525,343 Allowance for Doubtful A/R (455,260) Accounts, net $ 70,083 Town Council Page 174 of 522 Meeting Date: Monday, April 7, 2014 Total A/R Balances by Year •Fiscal Year 2007 $ 43,575 •Fiscal Year 2008 30,683 •Fiscal Year 2009 50,699 •Fiscal Year 2010 63,071 •Fiscal Year 2011 65,985 •Fiscal Year 2012 89,908 •Fiscal Year 2013 181,421 Total $525,343 Town Council Page 175 of 522 Meeting Date: Monday, April 7, 2014 In District A/R Balances by Year •Fiscal Year 2007 $ 11,227 •Fiscal Year 2008 13,622 •Fiscal Year 2009 25,809 •Fiscal Year 2010 44,574 •Fiscal Year 2011 44,879 •Fiscal Year 2012 62,381 •Fiscal Year 2013 92,103 Total $294,594 Town Council Page 176 of 522 Meeting Date: Monday, April 7, 2014 Out of District A/R Balances by Year •Fiscal Year 2007 $ 32,348 •Fiscal Year 2008 17,061 •Fiscal Year 2009 24,890 •Fiscal Year 2010 18,497 •Fiscal Year 2011 21,106 •Fiscal Year 2012 27,527 •Fiscal Year 2013 89,318 Total $230,748 Town Council Page 177 of 522 Meeting Date: Monday, April 7, 2014 Out of District vs. In District A/R - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 Out of District In District Town Council Page 178 of 522 Meeting Date: Monday, April 7, 2014 Typical Ambulance Collection Rates •Normal collection rates for ambulance services range between 60% and 70% annually, but can be between 50% and 80% in a given year. •Historically, ambulance services provided to persons outside the district are collected at a lower percentage than those in district (71% for In District vs. 51% for Out of District in Trophy Club). •In District ambulance services comprise 68.5% of total services provided in Trophy Club. Town Council Page 179 of 522 Meeting Date: Monday, April 7, 2014 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% Total In District Out of District Percent Collected FY 2007 - FY 2013 Town Council Page 180 of 522 Meeting Date: Monday, April 7, 2014 Conclusion and Options •Choosing an amount of AR to carry on the Town books between 3-5 years is within the normal range. •Three Years: $188,028 reduction in AR and Allowance •Four Years: $124,957 reduction in AR and Allowance •Five Years: $74,258 reduction in AR and Allowance Town Council Page 181 of 522 Meeting Date: Monday, April 7, 2014 CFAB Recommendation •CFAB recommends keeping 3 years of ambulance receivables on the Town’s books because it provides the most conservative position on the Town’s Balance Sheet. Town Council Page 182 of 522 Meeting Date: Monday, April 7, 2014 Leading collection agency partners with leading medical billing company5 Town Council Page 183 of 522 Meeting Date: Monday, April 7, 2014 Dear Prospective Client, Thank you for the opportunity and privilege to introduce the services offered by our company. We pride ourselves in being a leader in government and healthcare collections. • Our service is simple. We want to get debtors to pay their obligations, using best practice methods that are proven to improve collection rates. • We have resources that allow us to find almost anyone, anywhere. We utilize advanced skip tracing and credit bureau records to locate just about everyone. • In addition to offering standard payment methods, we also support cash payments at nearly 35,000 locations in North America, giving your debtors more flexibility and options to pay. In addition, your debtors will be able to enter any Walmart or CVS and pay with cash. Other companies that have attempted to compete with us simply utilize the wrong approach. For example, law firms are intimidating and ineffective, and lack adequate payment, skip tracing, and reporting requirements. As another example, routine collection agencies utilize minimum wage employees that have little understanding of compassion and technical aspects of collection. The bottom line is that our system will improve your agency’s cash flow, and give you access to incredibly easy to use audit utilities to view accounts and generate reports. I look forward to working with you in the near future. 5300 Memorial Drive Suite 940 Houston, Texas 77007 tel: (888) 488-8799 e-mail: info@gvt.us web: info.gvt.us Jeremy Mattern President, Board Chairman GVT.us, Ltd. Town Council Page 184 of 522 Meeting Date: Monday, April 7, 2014 © Copyright 2011-2012 GVT.us, Ltd. All Rights Reserved.tel: (888) 488-8799 e-mail: info@gvt.us 5 Gvt.us, Ltd provides collection services for EMS, healthcare, & government entities. By offering multiple easy methods of payment, a dedicated staff of agents, as well as powerful web-based software tools, our goal is to facilitate the payment of past-due accounts and accelerate revenue generation for our clients. Provide Your Account Holders with Access to Multiple Methods of Payment GVT.us, Ltd can process transactions via the following methods: Online Pay via a secure website Over the Phone Speak with a multi-lingual billing representative By Mail Mail a payment to us In Person Make a cash payment at over 35,000 MoneyGram® locations nationwide Reduce the Number of past-due Accounts Unpaid amounts can range from the hundreds to thousands of dollars per individual. We believe that citizens with unpaid accounts want to pay their obligation to society, but for whatever reason, they have been unable to do so. Our friendly and knowledgeable staff works with these individuals to enable them to pay their past-due accounts in an easy and convenient manner. If permitted by your agency, payment plans are offered. In many cases, debtors may have forgotten about their unpaid amounts, and may have changed their address or contact information. We utilize advanced methods to locate and identify current billing information for such accounts. Once located, account holders may receive phone calls and/or mailings from our staff reminding them of their obligation and providing them with detailed instructions on how to pay.“ What We Do Accelerate Revenue Generation for your Agency Hundreds of thousands, if not millions of dollars of unpaid debt can be used to fund infrastructure projects, pay off debt, or employ new workers. With our revenue generation solution, we facilitate the payment of past-due accounts by debtors and, ultimately, provide significantly increased revenue for your agency’s needs. Our friendly and knowledgeable staff works with these individuals to enable them to pay their past-due accounts in an easy and convenient manner.” Town Council Page 185 of 522 Meeting Date: Monday, April 7, 2014 © Copyright 2011-2012 GVT.us, Ltd. All Rights Reserved.tel: (888) 488-8799 e-mail: info@gvt.us 5 1 Transfer of Data to GVT.us 2 Activation of GVT.us Revenue Generation System 3 A B CD E F Realization of Increased Revenue Advanced Skip Tracing Phone Calls/ Text Messages Mail Correspondence Credit Bureaus MoneyGram® Online Payment GVT.us, Ltd utilizes several results-driven techniques, as well as advanced software tools, to ensure accounts are paid in a secure and timely manner. The entire process requires very little effort from your personnel and costs your agency nothing. Best of all, with our services, your agency can benefit from significant increases in revenue starting almost immediately. How It Works Town Council Page 186 of 522 Meeting Date: Monday, April 7, 2014 © Copyright 2011-2012 GVT.us, Ltd. All Rights Reserved.tel: (888) 488-8799 e-mail: info@gvt.us 5 How It Works Transfer of Data to GVT.us Intermedix securely transmits your collection accounts to our servers. This data contains relevant information, including status, amounts owed, and other pertinent information related to the debtor. Activation of GVT.us Revenue Generation System With your data loaded into the system, our staff members can immediately begin the revenue generation process. A variety of advanced techniques are implemented to ensure that the highest percentage of past-due account holders are notified of their obligation to pay, are educated on the negative consequences that can result from non-payment, and are enabled to pay off their remaining balance. These techniques include: Advanced Skip Tracing – Debtors can change residences frequently. As a result, your agency may not have accurate information on the current address of a debtor. Our team utilizes sophisticated methods to locate these individuals and collect as much contact information as possible. Over 4 billion records, compiled from 10,000 independent sources, will be checked. Phone Calls/Text Messages –Past-due accounts are called on a regular basis reminding the account holder of his or her account balance and offering several different payment plan options. We employ compassionate, caring individuals and provide extensive training to ensure that our personnel provide the highest level of service. Mail Correspondence – For busy individuals who may miss our calls, regular mailings are sent out to notify past-due account holders of their obligation and offer payment options. Letters arrive in unmarked envelopes to prevent any embarrassment. Self- addressed envelopes are enclosed with the letter to expedite payment. Credit Bureaus – As with any other obligation, late payments carry consequences. In the event of a debtor’s refusal to pay, we can also notify major credit bureaus, providing further incentive for the account holder to pay off his or her account obligation. MoneyGram® – Many past-due account holders do not have a bank account or credit card. As a partner with MoneyGram®, we offer the ability to pay in cash at over 35,000 locations nationwide, including supermarkets, check cashing vendors, convenience stores, Walmart stores and CVS pharmacies. Online Payment Portal – One of the most convenient methods of payment is through the internet. Our portal enables easy and secure payment at the debtor’s convenience. Realization of Increased Revenue Once a payment has been made on an account, it is recorded in our system, and the funds are deposited into a holding account until they have cleared. The funds can then be transferred to an account specified by your agency at regularly scheduled intervals. With each payment that is made, a notification is sent to other authorized parties. Additionally, posted payments can be viewed online and monthly statements can be sent for auditing purposes. 1 2 3 A B C D E F Town Council Page 187 of 522 Meeting Date: Monday, April 7, 2014 Please check box if the above address is incorrect or has changed and indicate on reverse side If paying by mail, please detach and return bottom portion with your payment. IF PAYING BY CREDIT CARD, FILL OUT BELOW CARD NUMBER EXP. DATE SIGNATURE BILLING ADDRESS ZIP CODE STATEMENT INFORMATION NOTICE DATE AMOUNT DUE REFERENCE NO. Questions about this statement? Please call 888-488-8798 SHOW AMOUNT PAID HERE$ COLLECTION NOTICE P.O. Box 24221 Washington, DC 20003 OTHER PAYMENT METHODS IN PERSON Conveniently pay at any MoneyGram® location. BY PHONE Toll-free: 1-888-488-8798 M-F 9a-5p CST OR ONLINE Go to www.gvt.us and log in with your reference #. P.O. Box 24221 Washington, DC 20003 (888) 488-8798 PLEASE PROVIDE A VALID E-MAIL AND PHONE NUMBER E-MAIL ADDRESS PHONE NUMBER August 2, 2011 Dear JEREMY MATTERN, This notice has been sent to you by a third party collection agency. The account listed below has been assigned to our office for collection. 08-20-2011 The City of Chicago EMS #84321 $1,120.00 Insurance was billed on this account and made payment. The remaining balance of $1,120.00 is your responsibility to pay. As of the date of this letter, your account has not yet been reported to the credit bureaus, and no lawsuits have been filed to collect this amount. The fastest way is to pay online at www.gvt.us or to call 1-888-488-8978. We accept Visa, Master Card, American Express, Discover, Money- Gram, personal check, or money order. IF YOU CAN NOT AFFORD TO PAY, call us and setup a payment plan. This will prevent further action on this account. To pay with cash, you may go to the MoneyGram counter at any Walmart or CVS pharmacy. To locate other MoneyGram locations in your area, call 1-800-MONEYGRAM. You will need to bring this notice with you. Unless you notify this office within 30 days after receiving this notice that you dispute the validity of this debt or any portion thereof, this office will assume that this debt is valid. If you notify us in writing within 30 days from receiving this notice, this office will obtain verification of the debt, and will provide you with the name and address of the original creditor, if different from the current creditor. This is an attempt to collect a debt and any information obtained will be used for that purpose. GVT.US, LTD is a privately owned third party debt collector that has been contracted to collect this debt and is not a division of the US federal government or any other political subdivision of state. MoneyGram® Biller Code: 9232 Account Number: 1234234 TOLL FREE: 888-488-8798 | ONLINE: WWW.GVT.US $1,120.0008-02-2011 12345-1 PAYMENT PROCESSING CENTER GVT.US P.O. BOX 27009 HOUSTON, TX 77227-7009 JEREMY MATTERN 302 GLENWOOD DR. HOUSTON, TX 77007 92013-286 # 0 0 0 1 2 3 Town Council Page 188 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-982-T Name: Status:Type:Agenda Item Consent Agenda File created:In control:3/6/2014 Town Council On agenda:Final action:3/17/2014 Title:Consider and take appropriate action regarding an agreement between the Town and the City of Fort Worth establishing terms and conditions for the use of Fort Worth's Trunked Voice Radio Systems in connection with the provision of mutual aid assistance; and authorizing the Mayor or her designee to execute all necessary documents. Attachments:Staff Report - Communication System Agreement.pdf Communication System Agreement.pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding an agreement between the Town and the City of Fort Worth establishing terms and conditions for the use of Fort Worth's TrunkedVoice Radio Systems in connection with the provision of mutual aid assistance; and authorizing the Mayor or her designee to execute all necessary documents. Town Council Page 189 of 522 Meeting Date: Monday, April 7, 2014 To: Mayor and Town Council From: Danny Tomas, Fire Chief CC: Mike Slye, Town Manager Tammy Ard, Town Secretary Re: Communication System Agreement Town Council Meeting, April 7, 2014 Agenda Item: Consider and take appropriate action regarding an agreement between the Town and the City of Fort Worth establishing terms and conditions for the use of Fort Worth's Trunked Voice Radio Systems in connection with the provision of mutual aid assistance; and authorizing the Mayor or her designee to execute all necessary documents. Explanation: This agreement will allow our Police/Fire/EMS departments to connect to a Multi-district master digital system radio communication system. The City of Fort Worth is the host system for Tarrant County. Our communication will expand to over twenty-two (22) departments. Attachments: • Communication System Agreement Town Council Goals: Goal #1: Safe and secure community. Maintain low crime rate Increase citizen awareness and involvement in crime prevention Provide superior Emergency Services Improve data security Goal #2: Business-Friendly Economic Development Create effective working relationships with businesses and developers Retain / Develop existing businesses Promote new commercial opportunities Goal # 3: Strong Partnerships and Community Involvement Create a positive regional identity Foster a well informed community Forge collaborative relationships with other governmental and public entities Town Council Page 190 of 522 Meeting Date: Monday, April 7, 2014 Support citizen volunteer opportunities Promote recreational / active lifestyle opportunities for all ages Goal #4: Healthy, Picturesque, and Environmentally Sound Promote recreational / active lifestyle opportunities for all ages Maintain neat and tidy appearance Improve property maintenance standards and code enforcement Develop / Enhance environmental and sustainability standards and programs Goal #5: Financial and Operational Stewardship Develop, recognize, and retain quality staff Implement strong financial management standards Improve effectiveness and efficiency of operational processes Maintain / Improve infrastructure and assets Provide cost-effective services Deliver responsible customer service Recommendation: Staff recommends approval of the agreement with the City of Fort Worth establishing terms and conditions for the use of Fort Worth's Trunked Voice Radio Systems in connection with the provision of mutual aid assistance. Town Council Page 191 of 522 Meeting Date: Monday, April 7, 2014 COMMUNICATIONS SYSTEM AGREEMENT MUTUAL AID ACCESS (SINGLE USE) – GOVERNMENT ENTITY This COMMUNICATIONS SYSTEM AGREEMENT (the “Agreement”) is made and entered into by and between the City of Fort Worth (“Fort Worth” or “CFW”) acting herein by and through its duly authorized Assistant City Manager, and the Town of Trophy Club (“USER”), acting herein by and through its duly authorized Mayor, individually referred to as a “party,” collectively referred to herein as the “parties.” The CFW or Fort Worth shall include all employees, directors, officers, agents, and authorized representatives. USER shall include all employees, directors, officers, agents, and authorized representatives. RECITALS WHEREAS, this Agreement is made under the authority of Sections 791.001-791.029, Texas Government Code; and WHEREAS, each governing body, in performing governmental functions or in paying for the performance of governmental functions hereunder, shall make that performance or those payments from current revenues legally available to that party; and WHEREAS, each governing body finds that the subject of this Agreement is necessary for the benefit of the public and each has the legal authority to perform and to provide the governmental function or service which is the subject matter of this Agreement; and WHEREAS, each governing body finds that the performance of this Agreement is in the common interest of both parties and that the division of costs fairly compensates the performing party for the services or functions under this Agreement; and WHEREAS, Fort Worth owns, operates, and maintains Trunked Voice Radio Systems for the purpose of providing Public Safety voice radio communications and is the sole license holder of the CFW Trunked Voice Radio Systems with all privileges and responsibilities thereof; and WHEREAS, Fort Worth and USER may, in an emergency or under certain other circumstances, provide each other with public safety support or other mutual aid or emergency assistance; and WHEREAS, the parties wish to enter into this Agreement to establish the terms and conditions pursuant to which USER will be able access CFW’s radio systems in connection with the provision of mutual aid assistance between the parties. NOW THEREFORE, Fort Worth and USER agree as follows: Town Council Page 192 of 522 Meeting Date: Monday, April 7, 2014 1. GRANT OF LICENSE Fort Worth hereby grants the USER specific permission to operate USER’s owned or leased field radio equipment or equipment attached and/or interfaced to the CFW Trunked Voice Radio Systems (the “Radio System”) infrastructure in mutual aid or emergency situations, provided, however, that such use must comply with the specific details and requirements for use as set forth in “Exhibit A, Terms of Use,” which is attached hereto, incorporated herein, and made a part of this Agreement for all purposes. Failure to comply with these specific details and requirements may result in the immediate withdrawal of the specified permissions. 2. TERM This Agreement shall begin upon the last day executed by all authorized parties and shall continue in full force and effect unless terminated in accordance with the provisions set forth herein and in Exhibit A. 3. LIABILITY With respect to the use of the Radio System, each party agrees to be liable for any damages or loss that may be caused by its own negligence, omission or intentional misconduct. For purposes of this Section 3, the term party shall include employees, directors, officers, agents, authorized representatives, subcontractors, consultants, and volunteers of the respective party. Nothing in the performance of this Agreement shall impose any liability for claims against either party other than for claims for which the Texas Tort Claims Act may impose liability. Further, this Agreement is not intended to affect the allocation of liability between the parties in connection with the provision of mutual aid assistance; liability for such mutual aid assistance shall be governed by the separate mutual aid agreement or state law provisions under which the assistance is being provided. 4. INDEPENDENT CONTRACTOR It is expressly understood and agreed that USER shall operate as an independent contractor as to all rights and privileges granted herein, and not as agent, representative or employee of the CFW. Subject to and in accordance with the conditions and provisions of this Agreement, USER shall have the exclusive right to control the details of its operations and activities with respect to the use of the Radio System and shall be solely responsible for the acts and omissions of its employees, directors, officers, agents, authorized representatives, subcontractors, and consultants. USER acknowledges that the doctrine of respondeat superior shall not apply as between the CFW, its employees, directors, officers, agents, and authorized representatives, and USER and its employees, directors, officers, agents, authorized representatives, subcontractors, and consultants. USER further agrees that nothing herein shall be construed as the creation of a partnership or joint enterprise between CFW and USER. This Agreement is not intended to affect the roles of the parties in connection with providing mutual aid assistance; coordination of mutual aid activities and chain-of-command issues shall be governed by the separate mutual aid agreement or state law provisions under which assistance is being provided. Town Council Page 193 of 522 Meeting Date: Monday, April 7, 2014 5. NON-APPROPRIATION OF FUNDS Fort Worth and USER will use best efforts to appropriate sufficient funds to support obligations under this Agreement. However, in the event that sufficient funds are not appropriated by either party’s governing body, and as a result, that party is unable to fulfill its obligations under this Agreement, that party (i) shall promptly notify the other party in writing and (ii) may terminate this Agreement, effective as of the last day for which sufficient funds have been appropriated. 6. RIGHT TO AUDIT USER agrees that the CFW shall, at no additional cost to the CFW, during and until the expiration of three (3) years after termination of this Agreement, have access to and the right to examine at reasonable times any directly pertinent books, documents, papers, records, and communications of the USER involving transactions relating to this Agreement. USER agrees that the CFW shall have access during normal working hours to all necessary USER facilities and shall be provided adequate and appropriate work space in order to conduct audits in compliance with the provisions of this section. The CFW shall give USER reasonable advance notice of intended audits. 7. ASSIGNMENT USER shall not have the right to assign or subcontract any of its duties, obligations or rights under this Agreement without the prior written consent of the CFW. Which such right shall be granted solely at the discretion of the CFW. Any assignment in violation of this provision shall be void. 8. NO WAIVER The failure of either party to insist upon the performance of any provision or condition of this Agreement or to exercise any right granted herein shall not constitute a waiver of that party’s right to insist upon appropriate performance or to assert any such right on any future occasion. 9. GOVERNMENTAL POWERS/IMMUNITIES It is understood and agreed that by execution of this Agreement, neither CFW nor USER waives or surrender any of its governmental powers or immunities. 10. AMENDMENTS No amendment to this Agreement shall be binding upon either party hereto unless such amendment is set forth in writing, dated subsequent to the date of this Agreement, and signed by both parties. Town Council Page 194 of 522 Meeting Date: Monday, April 7, 2014 11. SEVERABILITY If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 12. CONFIDENTIAL INFORMATION To the extent permitted by law, USER for itself and its officers, agents and employees, agrees that it shall treat all information provided to it by the CFW as confidential (“City Information”) and shall not disclose any such information to a third party without the prior written approval of the CFW, unless such disclosure is required by law, rule, regulation, court order, in which event USER shall notify CFW in writing of such requirement in sufficient time to allow CFW to seek injunctive or other relief to prevent such disclosure. USER shall store and maintain City Information in a secure manner and shall not allow unauthorized users to access, modify, delete or otherwise corrupt City Information in any way. USER shall notify the CFW immediately if the security or integrity of any City Information has been compromised or is believed to have been compromised. 13. FORCE MAJEURE The parties shall exercise their best efforts to meet their respective duties and obligations hereunder, but shall not be held liable for any delay in or omission of performance due to force majeure or other causes beyond their reasonable control, including, but not limited to, compliance with any state or federal law or regulation, acts of God, acts of omission, fires, strikes, lockouts, national disasters, wars, riots, material or labor restrictions, transportation problems, existing contractual obligations directly related to the subject matter of this Agreement, or declaration of a state of disaster or emergency by the federal, state, county, or City government in accordance with applicable law. 14. NOTICES. Notices required pursuant to the provisions of this Agreement shall be conclusively determined to have been delivered when (1) hand-delivered to the other party, its agents, employees, servants or representatives, (2) delivered by facsimile with electronic confirmation of the transmission, or (3) received by the other party by United States Mail, registered, return receipt requested, addressed as follows: City of Fort Worth Town of Trophy Club Attn: Susan Alanis, Assistant City Manager Attn: Mike Slye, Town Manager 1000 Throckmorton 100 Municipal Drive Fort Worth TX 76102-6311 Trophy Club, TX 76262 Facsimile: (817) 392-8654 Facsimile: (817) 491-9312 With Copy to the City Attorney At same address Town Council Page 195 of 522 Meeting Date: Monday, April 7, 2014 15. GOVERNING LAW / VENUE This Agreement shall be construed in accordance with the laws of the State of Texas. Venue for any action brought on the basis of this Agreement shall lie exclusively in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas – Fort Worth Division. In any such action, each party shall pay its own attorneys’ fees, court costs and other expenses incurred as a result of the action. 16. SIGNATURE AUTHORITY The person signing this Agreement hereby warrants that he/she has the legal authority to execute this Agreement on behalf of his or her respective party, and that such binding authority has been granted by proper order, resolution, ordinance or other authorization of the entity. The other party is fully entitled to rely on this warranty and representation in entering into this Agreement. 17. ENTIRETY OF AGREEMENT This written instrument, including all Exhibits attached hereto, contains the entire understanding and agreement between Fort Worth and USER as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with this Agreement. Any previously executed Communication System Agreement between the parties shall be terminated simultaneously with the final execution of this Agreement by both parties. 18. COUNTERPARTS. This Agreement may be executed in one or more counterparts and each counterpart shall, for all purposes, be deemed an original, but all such counterparts shall together constitute one and the same instrument. [SIGNATURES APPEAR ON FOLLOWING PAGE] Town Council Page 196 of 522 Meeting Date: Monday, April 7, 2014 EXECUTED IN MULTIPLE ORIGINALS on this the 7th day of April, 2014. CITY OF FORT WORTH: TOWN OF TROPHY CLUB: By: ____________________________ By: _________________________ Susan Alanis Connie White Assistant City Manager Mayor Date: ___________________________ Date: ________________________ ATTEST: ATTEST: By: _____________________________ By: __________________________ Mary J. Kayser Tammy Ard City Secretary Town Secretary APPROVED TO FORM APPROVED TO LEGALITY: AND LEGALITY: By: _______________________________ By: __________________________ Assistant City Attorney Patricia Adams Town Attorney Contract Authorization: M&C: ____________________________ Date Approved: ____________________ Town Council Page 197 of 522 Meeting Date: Monday, April 7, 2014 EXHIBIT A CATEGORY 1, TERMS OF USE The following definitions shall have the meanings set forth below and apply to this Agreement and the Terms of Use set forth herein: DEFINITIONS “Console System” shall mean all hardware and software associated with any dispatch console or set of consoles operated by the USER that are connected to the CFW Master Switch. “Interoperable Communications Governance Committee” (“Governance Committee”) shall mean that group of individuals tasked with maintaining and administering the Interoperable Communications Plan. The Governance Committee shall consist of ten to fifteen individuals with CFW selecting at least one representative and each classification of users selecting at least one representative. The Governance Committee shall determine and may periodically adjust the number of members and the method for selecting members for each classification of users with a goal of ensuring that the Governance Committee reflects the full range of user types. “Interoperable Communications Plan” (the “Plan”) means the plan developed and established by CFW and the Governance Committee to facilitate, enhance and simplify radio communications among all agencies utilizing the Radio System or connecting their Site Repeater Systems or Console Systems to the CFW Master Switch. The Plan is available upon request from CFW or can be found on the CFW website at http://fortworthtexas.gov/itsolutions/. “Master Switch” shall mean the primary processing and network infrastructure to which all Console Systems and Site Repeater Systems must connect in order to operate on the Radio System. The Master Switch is currently located at the CFW Eagle Mountain facility. “Over The Air Rekeying” (“OTAR”) shall mean the management and support of Subscriber Radio encryption keys via over-the-air, radio channel transmission. “Private Call” shall mean a feature that reserves channel resources specifically for conversations between two Subscriber Radios. “Site Repeater System” shall mean the base stations, shelter, tower and all site-specific hardware and software infrastructure associated with the provision of a radio site connected to the CFW Master Switch. “Subscriber Radio” shall mean a radio that has a unique identification number and is programmed to operate on the Radio System. The term shall include, but not be limited to, control stations (desk top radios), mobile radios, and portable radios. “Talk Group” shall mean a specific group of Subscriber Radios allowed to communicate privately within that group over shared infrastructure resources. Town Council Page 198 of 522 Meeting Date: Monday, April 7, 2014 TERMS OF USE 1. The installation and maintenance of the Radio System infrastructure equipment is the responsibility of CFW unless otherwise stated in this Agreement. 2. The CFW is the holder of the FCC (Federal Communications Commission) license(s) that the Radio System uses for its operation. This Agreement shall not be construed or interpreted to grant, convey, or otherwise provide USER with any rights whatsoever to the CFW FCC license(s) or to the Radio Frequency spectrum used by the Radio System. 3. The CFW makes no guarantee, either express or implied, as to radio signal strength or a specific level of radio coverage in a particular location. The USER is responsible for conducting appropriate and applicable in-building and geographical coverage testing to determine the expected radio coverage level for USER’s equipment. 4. USER will be responsible for the acquisition, programming, and maintenance of all equipment USER will be utilizing in connection with the Radio System infrastructure, including, but not limited to, Subscriber Radios, consoles, and special equipment. 5. In order to ensure hardware and software compatibility with the Radio System infrastructure, all Subscriber Radios and consoles intended for use by USER on the Radio System shall be compliant with Project 25 standards established by the Telecommunications Industry Association. The use of unauthorized radios on the Radio System may result in suspended operation of the radios and/or termination of the Agreement. 6. USER agrees to exclusively utilize antennas specifically approved by the radio manufacturer for use with the specific models of USER’s radios. The use of short, broad spectrum, or “stubby,” antennas is not recommended. USER shall be solely liable for coverage gaps in the event USER utilizes short broad spectrum or stubby antennas or other antennas not approved by the manufacturer for use with the specific models of USER’s radios. 7. No antenna gain greater than 3 DB will be allowed for mobiles and consolettes. 8. USER shall use due diligence in the maintenance and configuration of its Subscriber Radio equipment to ensure that no USER radio or console causes a degradation to the Radio System operation. The CFW shall have the right to remove from operation any field radio unit or equipment owned or leased by USER that is operating on, attached and/or interfaced to the CFW infrastructure, if CFW determines in its sole reasonable discretion that such equipment is causing interference or harm to the Radio System in any way. The CFW reserves the right to request that USER operated field radio units or equipment operating on, attached and/or interfaced to the infrastructure be tested for proper operation and/or repaired by an authorized radio repair facility approved by the CFW. The cost of such testing or repair will be the sole responsibility of USER. Furthermore, the CFW shall have the right to deactivate, without prior notification to or consent of USER, any field radio or other USER equipment suspected of causing interference, intentionally or unintentionally, to any other radios on the Radio System or to the Radio System’s overall operation. Town Council Page 199 of 522 Meeting Date: Monday, April 7, 2014 9. In instances in which the parties are engaged in providing mutual aid assistance, USER’s radios may be used for voice radio communications over the Radio System infrastructure in accordance with the terms and conditions of this Agreement for as long as this Agreement remains in effect. This Agreement does not authorize regular use of the Radio System in situations that do not involve mutual aid assistance between the parties. 10. The CFW will be responsible for managing infrastructure loading and demand. CFW reserves the right, without notice to incumbent users, to enter into a similar agreement with other entities or to deny the addition of new Subscriber Radio equipment to any user of the Radio System. The CFW shall have sole discretion in determining whether to allow additional users or radios based on CFW’s determination of whether such addition to the Radio System can be made without adversely impacting the Radio System. 11. USER is prohibited from utilizing telephone interconnect on the Radio System . This prohibition shall include, but is not limited to, connecting to either the PSTN (Public Switched Telephone Network) or USER’s internal phone system(s) through a console patch into the Radio System or to any Subscriber Radio on the Radio System. 12. Due to the radio infrastructure resource allocations required by “Private Call,” USER is not permitted to utilize “Private Call” on the Radio System. 13. USER is prohibited from utilizing data communications on the Radio System without CFW’s explicit written permission. 14. The use of OTAR in association with Subscriber Radio encryption is prohibited without prior approval of CFW. Administration of encryption keys will be performed exclusively by CFW. USER may utilize and administer other encryption methods as required. 15. The CFW will provide USER with an Advanced System Key (ASK) for use with the USER’s Subscriber Radios only. The ASK will expire annually, and USER shall be responsible for requesting a new ASK following expiration if one is required. USER will be responsible for safeguarding the security of the ASK to prevent theft and/or loss. USER agrees to notify CFW immediately upon the theft or loss of the ASK. 16. CFW will assign the USER Talk Group IDs unique to USER operation. All Talk Group names shall include a prefix unique to the USER’s agency. No other agency will be authorized to use USER Talk Groups without the express written permission of USER, and a copy of such permission must be on file with the CFW before such use may occur. The CFW reserves the right to require certain Talk Group ID’s to be programmed in USER radios. Additionally, between the parties. CFW shall have the right to limit the number of Talk Group ID’s to be used by USER and to disable Talk Groups ID’s as it deems appropriate. 17. The CFW has established a coordinated Interoperable Communications Plan to apply to CFW and the users of its Radio System. USER agrees to comply with the Plan and include the Plan’s interoperable Talk Groups in the programming of its Subscriber Radios and Console Systems. Town Council Page 200 of 522 Meeting Date: Monday, April 7, 2014 18. Roaming to other systems or the use of USER’s Talk Groups on other trunked systems that are interconnected to the Radio System is prohibited without prior approval by CFW. Roaming to other trunked systems will be limited to the Radio System’s interoperable Talk Groups, although this capability may be terminated by CFW if its use is determined to result in performance degradation to either the Radio System or the interconnected trunked system. 19. Either USER or CFW may terminate this Agreement for any reason, with or without cause, upon ninety (90) days written notice to the other party. The CFW further reserves the right to terminate this Agreement immediately, or deny access to the USER, upon notice of USER misuse of the Radio System. Notwithstanding the foregoing, the CFW, in its sole discretion, reserves the right to immediately deny access to the USER if such action is required to prevent the spread of a security breach or threatened security breach or due to an emergency, operational issue, or other critical incident between the Master Switch and the USER’s environment. The CFW will use best efforts to restore access to the USER as soon as possible once the security breach, emergency, operational issue, or critical incident is resolved. COMPLIANCE WITH LAWS 20. The USER shall comply with all current and future Federal, State, and Local laws, Ordinances, and Mandates, including Federal Communications Commission rules and regulations regarding proper use of radio communications equipment. The USER will also comply with the guidelines, or procedures set out in this Agreement. Furthermore, the USER is responsible for enforcing such compliance by its employees, directors, officers, agents, authorized representatives, subcontractors, and consultants for USER Subscriber Radio equipment. Furthermore, the USER will be responsible for payment of any fines and penalties levied against the CFW (as the license holder) as a result of improper or unlawful use of Subscriber Radio equipment owned or leased by USER. 21. Modification, reconfiguration, or exchange of Subscriber Radio equipment may be required in order for CFW to comply with Federal, State, and Local Laws and/ or Mandates imposed on CFW as the license holder. Following reasonable notice from CFW, USER shall be responsible for undertaking such modifications, reconfiguration, or exchange. In the event USER fails to undertake any necessary action, such failure shall be considered “misuse” under Paragraph 19, and CFW may terminate this Agreement immediately or deny access to USER. [End of Document] Town Council Page 201 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1078-T Name: Status:Type:Agenda Item Regular Session File created:In control:4/2/2014 Town Council On agenda:Final action:4/7/2014 Title:Consider and take appropriate action regarding an Ordinance repealing Section 6.01, "Rules of Procedure" of Article VI, "Town Council Rules of Procedure", of Chapter 1, "Administration" of the Code of Ordinances and adopting a new Chapter 1, Article VI, Section 6.01 "Rules of Procedure"; providing for the incorporation of premises, providing for an amendment; and providing an effective date. Attachments:Staff Report - Town Council Rules of Procedures.pdf ORD 2014-10 Chap 1-Article VI- Sec 6 01- Rules of Procedure.pdf Exhibit A.pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding an Ordinance repealing Section 6.01, "Rules of Procedure" of Article VI, "Town Council Rules of Procedure", of Chapter 1, "Administration" of the Code of Ordinances and adopting a new Chapter 1, Article VI, Section 6.01 "Rules of Procedure"; providing for the incorporation of premises, providing for an amendment; and providing an effective date. Town Council Page 202 of 522 Meeting Date: Monday, April 7, 2014 To: Mayor and Town Council From: Patricia Adams, Town Attorney CC: Mike Slye, Town Manager Tammy Ard, Town Secretary Re: Town Council Rules of Procedure Town Council Meeting, April 7, 2014 Agenda Item: Consider and take appropriate action regarding an Ordinance repealing Section 6.01, "Rules of Procedure" of Article VI, "Town Council Rules of Procedure", of Chapter 1, "Administration" of the Code of Ordinances and adopting a new Chapter 1, Article VI, Section 6.01 "Rules of Procedure"; providing for the incorporation of premises, providing for an amendment; and providing an effective date. Explanation: At the March Council meetings, the Town Council has reviewed and refined proposed changes to the Council Rules of Procedure which are adopted via ordinance as Section 6.01 “Rules of Procedure” of Article VI, Chapter 1 of the Code of Ordinances. The draft that is provided in the backup for this agenda contains changes made as a result of the Council’s discussion at the March 3rd and March 17th Council meeting In addition to those changes, there are two minor revisions that have been made as a result of feedback that I received from the redline sent out earlier today (Wednesday, April 2nd). The first change is not substantive. Section E, subsection 5 formerly contained the rules governing presentations by citizens or representatives of organized groups for both Agenda Items and the Citizens Presentation component of Council meetings. This section has now been divided into two individual sections with one governing Agenda Items and the other governing Citizens Presentations. The second change was a minor change in wording to Section E(6) and relates to a speaking giving time to another speaker. The language in the March 17th draft provided, “A speaker’s time may not be given to another.” A concern was raised that because people offer up their time from the audience and may not have actually signed up as a “speaker”, the language would be more clear if it were to read, “A person may not give his/her speaking time to another”; hence, avoiding any confusion over whether a person who has not signed up to speak may give time to a person speaking. The proposed change is a clarification and does not alter the substantive meaning of that section. Town Council Page 203 of 522 Meeting Date: Monday, April 7, 2014 Attachments: • Ordinance 2014-10 • Exhibit “A” Town Council Goals: Goal #1: Safe and secure community. Maintain low crime rate Increase citizen awareness and involvement in crime prevention Provide superior Emergency Services Improve data security Goal #2: Business-Friendly Economic Development Create effective working relationships with businesses and developers Retain / Develop existing businesses Promote new commercial opportunities Goal # 3: Strong Partnerships and Community Involvement Create a positive regional identity Foster a well informed community Forge collaborative relationships with other governmental and public entities Support citizen volunteer opportunities Promote recreational / active lifestyle opportunities for all ages Goal #4: Healthy, Picturesque, and Environmentally Sound Promote recreational / active lifestyle opportunities for all ages Maintain neat and tidy appearance Improve property maintenance standards and code enforcement Develop / Enhance environmental and sustainability standards and programs Goal #5: Financial and Operational Stewardship Develop, recognize, and retain quality staff Implement strong financial management standards Improve effectiveness and efficiency of operational processes Maintain / Improve infrastructure and assets Provide cost-effective services Deliver responsible customer service Recommendation: Staff recommends approval of Ordinance 2014-10 repealing Section 6.01, "Rules of Procedure" of Article VI, "Town Council Rules of Procedure", of Chapter 1, "Administration" of the Code of Ordinances and adopting a new Chapter 1, Article VI, Section 6.01 "Rules of Procedure" Town Council Page 204 of 522 Meeting Date: Monday, April 7, 2014 TOWN OF TROPHY CLUB, TEXAS ORDINANCE 2014-10 AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS REPEALING SECTION 6.01 ENTITLED “RULES OF PROCEDURE”, OF ARTICLE VI, ENTITLED “TOWN COUNCIL RULES OF PROCEDURE” OF CHAPTER 1 “ADMINISTRATION” OF THE CODE OF ORDINANCES AND ADOPTING A NEW SECTION 6.01 ENTITLED “RULES OF PROCEDURE”, OF ARTICLE VI, ENTITLED “TOWN COUNCIL RULES OF PROCEDURE” OF CHAPTER 1 “ADMINISTRATION” OF THE CODE OF ORDINANCES IN ORDER TO MAKE CHANGES TO THE RULES AND PROCEDURES OF THE TOWN COUNCIL; PROVIDING A SAVINGS AND REPEALER CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town Council establishes rules and procedures to ensure that its meetings are conducted in an orderly manner; and WHEREAS, the Town Council has the authority to generally review and make changes to its procedural rules as it determines appropriate for the orderly conduct of its meetings; and WHEREAS, having reviewed the existing procedures and considering the desire to conduct orderly and efficient meetings, the Town Council hereby finds that the amendment of various subsections in Section 6.01 of Article VI of the Code of Ordinances is in order; and WHEREAS, due to the extensive nature of the revisions to Section 6.01, the Council has determined it to be beneficial to repeal Section 6.01 in its entirety and adopt a new Section 6.01 of Article VI of Chapter I of the Code of Ordinances of the Town as set forth herein as Exhibit “A”; and WHEREAS, having considered each and every one of the revisions proposed herein, the Council finds that the adoption of the newly proposed Section 6.01 as set forth in Exhibit “A” serves the best interests of the Town and will assist with the conduct of orderly and efficient meetings. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: SECTION 1. INCORPORATION OF PREMISES That the above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. SECTION 2. AMENDMENT Section 6.01 entitled “Rules of Procedure” of Article VI entitled, “Town Council Rules of Procedure” of Chapter 1, entitled “Administration” of the Code of Ordinances of the Town of Trophy Club, Texas is hereby repealed and a new Section 6.01 entitled “Rules of Procedure” of Article VI entitled, “Town Council Rules of Procedure” of Chapter 1, entitled “Administration” of the Code of Ordinances of the Town of Trophy Club as set forth in Exhibit “A”, a copy of which is attached hereto and incorporated herein in its entirety, is hereby adopted to be and read in its entirety as set forth in Exhibit “A”. Town Council Page 205 of 522 Meeting Date: Monday, April 7, 2014 SECTION 3. SAVINGS AND REPEALER That this Ordinance shall be cumulative of all other ordinances of the Town affecting rules of procedure and shall not repeal any of the provisions of such ordinances except in those instances where provisions of those ordinances are in direct conflict with the provisions of this Ordinance; whether such ordinances are codified or uncodified, and all other provisions of the Ordinances of the Town of Trophy Club, codified or uncodified, not in conflict with the provisions of this Ordinance, shall remain in full force and effect. SECTION 4. SEVERABILITY If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or its application 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 it would have passed such remaining portions of the Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 5. ENGROSSMENT AND ENROLLMENT The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this Ordinance in accordance with the Town Charter and by filing this Ordinance in the Ordinance records of the Town. SECTION 6. EFFECTIVE DATE This Ordinance shall become effective from and after its date of passage and publication as required by law. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this 7th day of April, 2014. Mayor, Connie White Town of Trophy Club, Texas ATTEST: Tammy Ard , Town Secretary Town of Trophy Club, Texas APPROVED TO AS FORM: Patricia A. Adams, Town Attorney Town of Trophy Club, Texas Town Council Page 206 of 522 Meeting Date: Monday, April 7, 2014 EXHIBIT “A” TOWN COUNCIL RULES OF PROCEDURE Town Council Page 207 of 522 Meeting Date: Monday, April 7, 2014 Section 6.01 Rules of Procedure A. Authority 1. Ordinance: Pursuant to Section 3.11 of the Home Rule Charter of the Town of Trophy Club, the Town Council shall determine its own rules of procedure. B. General Rules 1. Meetings to be Public All official meetings of the Town Council and all sessions of a sub-committee of the Town Council consisting of a quorum of the Council shall be public unless otherwise specified by Council. 2. Quorum The governing body of the Town consists of a Mayor and six (6) Council members. Attendance at a Council meeting by four (4) of the seven (7) members of the Town Council constitutes a quorum for the purpose of a regular or special meeting. 3. Attendance As specified in the Town Charter, should a member of the Town Council fail to attend three consecutive regular meetings without being excused by the Council, his/her office may be declared forfeited by the Council. A member of the Town Council who is unable to attend a Council meeting shall notify the Town Secretary of his/her inability to attend the meeting and shall provide an explanation of the conflict or other reason that prevents his/her attendance. Notice to the Town Secretary shall be provided as soon as practicable after the member becomes aware that he/she will be absent. The Town Secretary shall notify the Council of the absence prior to the beginning of the Council meeting from which the member will be absent. 4. Misconduct The Town Council may punish its own members for misconduct as authorized by state law and Town Charter. 5. Minutes of Town Council Meetings An account of all proceedings of the Town Council shall be kept by the Town Secretary and shall be entered into a book constituting the official record of the Town Council. 6. Questions to Contain One Subject All questions submitted for a vote shall contain only one subject. If two or more points are involved, any member may require a division, if the question reasonably admits of a division. 7. Right to Floor Any Town Council member desiring to speak shall be recognized by the Chairman/Mayor. No member shall be allowed to speak more than once on any one subject until every member wishing to speak shall have spoken. Town Council Page 208 of 522 Meeting Date: Monday, April 7, 2014 8. Town Manager The Town Manager or Assistant Town Manager or Acting Town Manager, shall attend all meetings of the Town Council unless excused by the Mayor or Town Council. The Town Manager, Assistant Town Manager, or Acting Town Manager may make recommendations to the Town Council and shall have the right to take part in all discussions of the Town Council, but shall have no vote. The Town Manager may place an item for discussion and/or action on the Council agenda. 9. Town Attorney The Town Attorney or Acting Town Attorney, shall attend all meetings of the Town Council unless excused by the Mayor or Town Council and shall, upon request, give an opinion, either written or oral, on questions of law. The Town Attorney shall act as the Town Council’s parliamentarian. 10. Town Secretary The Town Secretary or Acting 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 of him/her by the Town Council. 11. Officers and Employees Any officer or employee of the Town; when requested by the Town Manager, shall attend any meeting of the Town Council. If requested to do so by the Town Manager, they may present information relating to matters before the Town Council. 12. Rules of Order Robert’s Rules of Order Newly Revised, as amended by the Council, shall govern the proceedings of the Town Council. 13. Suspension of Rules Suspension of Rules. Any provision of these rules may be temporarily suspended by a two-thirds vote of all members of the Town Council in attendance. The vote on any such suspension shall be taken by a show of hands and entered into the record. 14. Amendment to Rules These rules may be amended, or new rules adopted with a favorable vote by four (4) members of the Town Council in attendance, provided that the proposed amendments or new rules shall have been introduced into the record at a prior Town Council meeting. C. Types of Meetings 1. Regular Meetings The Town Council, shall meet in the Council/Board Room at the Municipal Utility District Building, 100 Municipal Drive, Trophy Club, Texas on the first and third Monday of each month and each meeting shall commence at the time and place posted on the agenda for that meeting. Town Council Page 209 of 522 Meeting Date: Monday, April 7, 2014 2. Special Meetings Special meetings may be called by the Mayor or by any three (3) members of the Town Council. The call for a special meeting shall be filed with the Town Secretary in written form, except that announcement of a special meeting, during any regular meeting at which all members are present, shall be sufficient notice of such special meeting. The call for a special meeting shall specify the day and the hour of the special meeting, and shall list the subject or subjects to be considered. No special meeting shall be held until at least 72 hours after the call is issued or within two (2) hours for an emergency meeting. Only such business may be transacted at a special meeting as may be listed in the call for said meeting or as incident thereto. 3. Emergency Meetings In case of emergency or urgent public necessity, which shall be expressed in notice of the meeting, an emergency meeting shall be called by the Chairman/Mayor or on the application of three (3) members of the Town Council, and it shall be sufficient if the notice is posted two (2) hours before the meeting is convened. 4. Recessed Meetings Any meeting of the Town Council may be recessed to a later time, provided that no recess shall be for a longer period than until the next regular meeting. 5. Public Hearings: All meetings shall be held in full compliance with the provisions of state law and Codes of the Town. Any party in interest may appear in his/her own behalf or be represented by counsel or agent. The Town Secretary shall set public hearing dates for the Town Council as requested, be responsible for timely advertising in the official newspaper, and notify interested parties according to requirements of the Town Council. D. Chairman and Duties 1. Chairman The Mayor, if present, shall preside as Chairman at all meetings of the Town Council. In the absence of the Mayor, the Mayor Pro-Tem shall preside. In the absence of both the Mayor and the Mayor Pro-Tem, the Town Council shall elect a chairman. 2. Call to Order The meetings of the Town Council shall be called to order by the Mayor, or in his absence, by the Mayor Pro-Tem. In the absence of both the Mayor and the Mayor Pro- Tem, the meeting shall be called to order by the Town Secretary. 3. Preservation of Order The Chairman shall preserve order and decorum, prevent personalities from becoming involved in debate and confine members in debate to the question under discussion. Town Council Page 210 of 522 Meeting Date: Monday, April 7, 2014 4. Points of Order A member may interrupt debate for immediate consideration of questions relating to rights and privileges of the assembly. The Chairman/Mayor will decide the question or may refer to the Town Attorney for a ruling. The Chairman/Mayor’s decision is subject to appeal to the Town Council. A member of the Council may appeal a ruling of the Chair by obtaining the floor and stating, “I appeal from the ruling of the Chair." The person appealing can interrupt a speaker who has the floor. If another member seconds the appeal, the procedure is as follows: The Mayor/Chair puts the question to the members for a vote. The question cannot be amended and it is debatable unless the immediately pending question is not debatable, The purpose of the vote is to decide whether the Chair’s ruling should be sustained. The Mayor/Chair is entitled to speak first and last in any discussion about the appeal or his/her decision. A majority vote is required to overturn the decision of the Chair, and the question can be reconsidered. 5. Questions to be Stated The Chairman shall state all questions submitted for a vote and announce the result. The announcement of the result will include the number of votes for, number of votes against and abstentions, or state if unanimous. 6. Substitution of Chairman The Chairman may call any other member to take his place in the chair, such substitution not to continue beyond adjournment. E. Order of Business 1. Agenda The business of each meeting shall be as contained in the Agenda in the order established by the Mayor. The Town Secretary shall prepare the agenda. The agenda shall be a listing of topics to be considered by the Town Council and delivered to members of the Town Council each Thursday preceding the Monday meeting to which it pertains. The agenda may provide for a work session immediately preceding the commencement of the Council meeting in order to allow Council discussion and questions related to one or more of the items posted on the agenda. 2. Presentations by Members of Town Council – Future Agenda Items The agenda shall provide a time when the Mayor or any Town Council member may bring before the Town Council any business that the Town Council member believes should be deliberated upon by the Town Council at a future meeting of the Town Council. However, pursuant to the Town Charter, before any item is placed for discussion and/or action on a future Town Council agenda, a request for its placement on the agenda shall be made by either the Mayor or by any two (2) Councilmembers. These matters need not be specifically listed on the agenda, but discussion and formal action on such matters shall be deferred until a subsequent Town Council meeting provided that the requirements of Chapter 551 Texas Government Code have been met. 3. Request for Agenda Item by Chairperson A Chairperson of a Council appointed Board, Commission, Corporation, or other appointed body requesting that an item be placed on the Council agenda for discussion and/or action shall present such request to the Town Manager in writing in the time Town Council Page 211 of 522 Meeting Date: Monday, April 7, 2014 frame set forth in Section 4 below. 4. Deadline for Submission of Agenda Items A subject for the Town Council’s consideration shall be submitted to the Town Secretary’s office in writing not later than 5:00 p.m. on Monday, (7 days prior) to the meeting at which the subject is to be considered. 5. Presentation by Citizens or Representative(s) of Organized Groups – Citizens Presentations Presentations by citizens at the Citizens Presentation segment of a Council Meeting, with or without prior notification, shall be limited to a total of four (4) minutes. 6. Presentation by Citizens or Representative(s) of Organized Groups – Agenda Items. Presentations by citizens, with or without prior notification, shall be limited to a total of six minutes. For items on the agenda, the speaker will be limited to four (4) minutes of time to complete his/her comments prior to Council discussion and two (2) minutes of time subsequent to Council discussion but before the Chair calls for a vote. The designated time keeper shall maintain the time and advise the speaker when his/her time has expired. The speaker shall then complete his sentence and take his/her seat. A person may not give his/her speaking time to another. Persons wishing to express their position on an agenda item but who do not wish to speak shall complete a Speaker’s Card and indicate their support or opposition. The name and respective position of such person(s) shall be read into the record. 7. Rules of Conduct Applicable to Citizen’s Presentations for Agenda Items, Citizen’s Presentations, and for Public Hearings: Each person addressing the Council shall step up to the microphone, shall give his or her name and address in an audible tone of voice for the record. If representing an organized group, the speaker shall identify the group represented. All remarks shall be addressed to the Council as a body, and not to any member thereof. No person, other than Town staff, members of the Council and the person having the floor, shall be permitted to enter into any discussion, either directly or through the members of the Council. No questions shall be asked of the Councilmembers, except through the presiding officer. All citizens shall refrain from private conversations in the chamber while the Town Council is in session. Citizens attending Town Council meetings shall observe the same rules of priority, decorum, and good conduct applicable to the administrative staff. Any persons making personal, impertinent, or slanderous remarks, or who becomes boisterous while addressing the Town Council or while attending the Town Council meeting, shall be removed from the room if the Chief of Police (or his representative) is so directed by the Mayor/Chairman, and such person shall be barred from further audience before the Town Council during that session of the Town Council. Unauthorized remarks from the audience, stamping of feet, whistles, yells and similar demonstrations shall not be permitted by the Mayor/Chairman, who shall direct the Chief of Police to remove such offenders from the room. In case the Chairman shall fail to act, any other of the Town Council may move to require the Chair to enforce the rules, and the affirmative vote of a majority of all members present of the Town Council shall require the presiding officer to act. Town Council Page 212 of 522 Meeting Date: Monday, April 7, 2014 No placards, banners or signs of any kind shall be permitted in the Council Chamber unless exhibits, displays and visual aids are used in connection with presentations to the Town Council, provided that such exhibits, displays and visuals aids do not disrupt the meeting. 8. Written Communications to Council: General. Interested parties, or their authorized representatives, may address the Council by written communication in regard to any matter concerning the Town’s business or over which the Council has control at any time. Agenda Items. A written communication relative to an item posted for consideration on a Town Council agenda may be submitted by direct mail to the Council or by delivery of the communication to the Town Secretary at least four (4) hours prior to the time for commencement of the Town Council meeting at which an item will be discussed. Upon timely receipt of a communication, the Town Secretary shall distribute copies to each of the Councilmembers and shall make copies available for public review at a designated location in the Council Chambers. The names of those submitting the communication and the topic addressed will be entered into the record without the necessity for reading as long as sufficient copies are available at the meeting for review by members of the audience/public. 9. Presentations by Town Manager 10. 11. Matters requiring the Council’s attention which may have developed since the deadline for delivery of the written communication to the Council may be presented orally by the Town Manager for informational purposes only in accordance with Chapter 551 Texas Government Code. Requests for Research or Information The Mayor and individual Councilmembers 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, he and the members of Council will coordinate a reasonable and responsible timeframe in which to expect the results without unduly interfering with other activities of higher priority. Notification of Significant Activities or Events The Mayor and Councilmembers expect the Town Manager to notify them, and provide periodic updates regarding significant activities or events in the Town related to natural or man-made disasters, major criminal activity, accidents involving Town property, or death involving Town staff/employees. 12. Seating Arrangement The Town Manager, Town Secretary, and Town Attorney shall occupy the respective seats in the Council Chamber assigned to them by the Chairman/Mayor, but any two (2) or more of the Town Council may exchange seats. F. Consideration of Ordinances, Resolutions and Motions 1. Printed or Typewritten Form All ordinances and resolutions shall be presented to the Town Council only in written form. Town Council Page 213 of 522 Meeting Date: Monday, April 7, 2014 2. Town Attorney to Approve All ordinances and resolutions shall be approved as to form and legality by the Town Attorney. 3. Distribution of Ordinances The Town Secretary shall prepare copies of all proposed ordinances for distribution to all members of the Town Council at the meeting at which the ordinance is introduced, or at such earlier time as is expedient. 4. Recording of Votes The show of hands shall be taken and entered upon the passage of all ordinances and resolutions and entered into the official record of the Council. 5. Vote Required for Approval Approval of every ordinance, resolution, or motion shall require the affirmative vote of four (4) of the members of the Town Council in attendance. 6. Mayoral Vote The Mayor shall have a vote on all matters before the Council. 7. Conflict of Interest Should any person on the Town Council have a conflict of interest pursuant to any State laws and/or Town ordinances regulating conflicts of interest with regard to an item on the Council agenda, such person shall openly declare the conflict before the discussion proceeds, shall complete an affidavit as required by state law, and shall be prohibited from participating in the discussion or vote on the item. 8. Abstention from Voting Should any person on the Town Council abstain from voting on an agenda item where no conflict of interest under State law and/or Town ordinance exists, the person’s vote shall be recorded as a negative vote in the minutes of the Council meeting. G. Rules of Decorum 1. Recognition by Chairman/Mayor No person shall address the Town Council without first being recognized by the Chairman/Mayor. 2. Order While the Council is in session, the members must preserve order and decorum, and a member shall neither, by conversation or otherwise, delay or interrupt the proceedings or the peace of the Town Council nor disturb any member while speaking or refuse to obey the orders of the Chairman/Mayor. Members of the Town Council shall not leave their seats during a meeting without first obtaining the permission of the Chairman/Mayor. 3. Chairman/Mayor May Debate The Chairman/Mayor may move only to such limitations of debate as are the rights and privileges of a Town Council member by reason of his acting as the Chairman/Mayor. If the Chairman/Mayor is engaged in debate and is abusing his position as chairman, at the insistence of any three (3) Council members, the Chairman/Mayor member must Town Council Page 214 of 522 Meeting Date: Monday, April 7, 2014 relinquish the chair in accordance with provisions of Robert’s Rules of Order Newly Revised. 4. Getting the Floor, Improper References to be Avoided Every member desiring to speak shall address the chair, and upon recognition by the Chairman/Mayor shall confine himself/herself to the questions under debate, avoiding all personalities and inappropriate language. 5. Interruptions A member, once recognized, shall not be interrupted when speaking unless it be to call the member to order, or as herein otherwise provided. If a member, while speaking, is called to order, the Town Council member shall cease speaking until the question of order be determined and, if in order, the Town Council member shall be permitted to proceed. H. Parliamentary Motions and Precedence 1. Discussion of Items Each agenda item shall be considered open for discussion when that item is announced by the Chairman/Mayor. If a member wishes to challenge an agenda item on the basis that the item is not a proper topic for Council discussion, such member shall state that he or she “objects to the consideration of the question”. This action does not require a second. When the objection is made, the Chairman/Mayor shall immediately call the question: “Will the assembly consider this question?” If 2/3 of the members vote “no”, the question cannot be introduced. An objection to consideration of a question must be made when the item is first introduced and before it has been debated. A motion for appropriate action shall be made after discussion of an item has been concluded. 2. Motions After obtaining the floor a motion can be made before the assembly on the particular subject of discussion. A “Second” to the motion must be made by another Town Council member within a reasonable but brief time period. Without a “second” the motion dies. No main motion can be made when another motion is pending. 3. Withdrawal of Motions A motion may be withdrawn, or modified, by its mover without asking permission until the motion has been stated by the Chairman/Mayor. If the mover modifies his motion, the person who seconds the motion may withdraw his second. After the question has been stated, the mover shall neither withdraw it nor modify it without the consent of the Council. 4. Stating the Question In principle, the Chairman/Mayor must state the question on a motion imm ediately after it has been made and seconded, unless the Council member is obligated to rule that the motion is out of order or if the wording is not clear. Town Council Page 215 of 522 Meeting Date: Monday, April 7, 2014 5. Amendments to Motions No motion or proposition of a subject different from that under consideration shall be admitted under color of 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. 6. Debate Debate must be limited to the merits of the immediately pending question as stated by the chair and by authority of the Chairman/Mayor. 7. Calling for the Question by Chair – Ending Debate The Chairman/Mayor may “call for the question” without a vote if debate appears to have closed and if there are no objections by any Council member. A motion for the previous question (Call the Question) may not interrupt a speaker who has the floor, must be made and seconded, is not debatable, cannot be amended, requires an affirmative, two-thirds vote of members present to pass and in this assembly cannot be reconsidered. Additionally, in order to protect the democratic process, any Council Member or member of the public who is on record to speak before the motion is made will be permitted to speak before the vote is taken on the motion for the previous question. I. Creation of Boards, Commissions, Corporations, and Other Appointed Bodies 1. Ad-Hoc Committees The Council may, as the need arises, authorize the appointment of “ad hoc” committees. Except where otherwise specifically provided, the Mayor shall appoint the members of the “ad hoc” committees, subject to the approval of the Town Council. Any committee so created shall cease to exist upon the accomplishment of the special purpose for which it was created or when abolished by a majority vote of the Town Council. 2. Citizen Boards, Commissions, Corporations, and Other Appointed Bodies The Town Council may create Boards, Commissions, Corporations and other Council appointed bodies to assist in the conduct of the operation of the Town government with such duties as the Council may specify. Memberships and selection of members shall be as provided in accordance with the guidelines in the Handbook for Elected and Appointed Officials, as amended from time to time. Any such appointed bodies so created shall cease to exist upon the accomplishment of the special purpose for which it was created, or when abolished by a majority vote of the Town Council. No body so appointed shall have powers other than advisory to the Town Council, except as otherwise specified by the laws of the State of Texas. These Rules of Procedure shall apply to Council appointed Boards, Commissions, Corporations, and other appointed bodies in accordance with the Town’s Handbook for Appointed and Elected Officials and shall only be modified as provided in the enabling ordinances for each such Council appointed body. Town Council Page 216 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1018-T Name: Status:Type:Agenda Item Consent Agenda File created:In control:3/16/2014 Town Council On agenda:Final action:4/7/2014 Title:Consider and take appropriate action regarding the First Modification to Neighborhood 4, Isle of Turnberry, Subdivider's Agreement by and between the Town and Standard Pacific of Texas, Inc., and authorizing the Mayor or her designee to execute all necessary documents. Attachments:staff report - 1st Modification to the Subdivider’s Agreement for Neighborhood 4, Isle of Turnberry.pdf 040714 First Modification - NH 4 Isle of Turnberry.pdf Subdividers Agreement - signed.pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding the First Modification to Neighborhood 4, Isle of Turnberry,Subdivider's Agreement by and between the Town and Standard Pacific of Texas, Inc., and authorizing the Mayor or her designee to execute all necessary documents. Town Council Page 217 of 522 Meeting Date: Monday, April 7, 2014 To: Mayor and Town Council From: Carolyn Huggins, Community Development Director CC: Mike Slye, Town Manager Tammy Ard, Town Secretary Re: First Modification to the Subdivider’s Agreement for NH4, Isle of Turnberry Town Council Meeting, April 7, 2014 Agenda Item: Consider and take appropriate action regarding (insert verbiage) a request for approval of a First Modification to the Subdivider’s Agreement for Neighborhood 4, Isle of Turnberry (10.783 acres) located in The Highlands at Trophy Club. Applicant: Standard Pacific of Texas, Inc. Explanation: On November 4, 2013, Council approved a Final Plat and Subdivider’s Agreement for Neighborhood 4, Isle of Turnberry subdivision consisting of fourteen (14) lots on Veranda Avenue. After Council approves a final plat and Subdivider’s Agreement for a subdivision, construction of the infrastructure begins and the public improvements are built. The public improvements include the items listed in the Subdivider’s Agreement, Section II. A. which are: 1) Water Distribution System 2) Sanitary Sewer System 3) Drainage and Storm Sewer System 4) Street Paving 5) Landscaping 6) Fences/Walls/Retaining Walls 7) Signs 8) Driveways and Walkways 9) Lights When all of the above items are constructed and have passed inspection, the Town issues a Letter of Approval for the Subdivision and building permits for the individual lots can then be issued. The Developer, Standard Pacific of Texas, is coming back before Council to request a modification of the Subdivider’s Agreement to allow early release of 20% (3 lots) of the Town Council Page 218 of 522 Meeting Date: Monday, April 7, 2014 fourteen (14) lots in Neighborhood 4, Isle of Turnberry with “Substantial Completion” approval. Substantial Completion includes completion of the above items 1, 2, 3, 4, and 7. The developer is requesting early release because lots have been pre-sold and the developer and buyers are anxious to begin home construction as quickly as possible. The Developer shall complete all public improvements, and a Letter of Acceptance shall be issued for the entire infrastructure before any home shall receive a final inspection and occupancy. These terms are stated and specified in the attached first Modification. Attachments: • First Modification to the Subdivider’s Agreement for NH 4, Isle of Turnberry • Subdivider’s Agreement Town Council Goals: Goal #1: Safe and secure community. Maintain low crime rate Increase citizen awareness and involvement in crime prevention Provide superior Emergency Services Improve data security Goal #2: Business-Friendly Economic Development Create effective working relationships with businesses and developers Retain / Develop existing businesses Promote new commercial opportunities Goal # 3: Strong Partnerships and Community Involvement Create a positive regional identity Foster a well informed community Forge collaborative relationships with other governmental and public entities Support citizen volunteer opportunities Promote recreational / active lifestyle opportunities for all ages Goal #4: Healthy, Picturesque, and Environmentally Sound Promote recreational / active lifestyle opportunities for all ages Maintain neat and tidy appearance Improve property maintenance standards and code enforcement Develop / Enhance environmental and sustainability standards and programs Goal #5: Financial and Operational Stewardship Develop, recognize, and retain quality staff Implement strong financial management standards Improve effectiveness and efficiency of operational processes Maintain / Improve infrastructure and assets Provide cost-effective services Deliver responsible customer service Town Council Page 219 of 522 Meeting Date: Monday, April 7, 2014 Recommendation: Staff recommends approval of the First Modification of Neighborhood 4, Isle of Turnberry Subdivider’s Agreement. Town Council Page 220 of 522 Meeting Date: Monday, April 7, 2014 THE STATE OF TEXAS § § § § COUNTY OF DENTON § First Modification of Neighborhood 4 Isle of Turnberry Subdivider’s Agreement Between the Town of Trophy Club, Texas, and High Trophy Development, L.P. THIS the First Modification of the AGREEMENT between the Town of Trophy Club, Texas (hereinafter referred to as the "TOWN") and Standard Pacific of Texas, Inc., acting by and through its duly authorized representative (hereinafter referred to as the "DEVELOPER"), and entitled “The Highlands at Trophy Club, Neighborhood 4, Isle of Turnberry Subdivider’s Agreement” for the installation of public improvements and facilities within the TOWN limits of Trophy Club, Texas, for The Highlands at Trophy Club, Neighborhood 4, Isle of Turnberry is made and entered into on this the _______ day of April, 2014, by and between TOWN and DEVELOPER (hereinafter “First Modification”). W I T N E S S E T H : WHEREAS, TOWN and DEVELOPER entered into The Highlands at Trophy Club, Neighborhood 4, Isle of Turnberry Subdivider’s Agreement on or about November 4, 2013, for the installation of certain public improvements in the Highlands at Trophy Club, Neighborhood 4, Isle of Turnberry (hereinafter “Agreement”); and WHEREAS, In April, 2014, the parties determined it necessary to modify the Agreement in order to revise its terms as expressly set forth herein; and WHEREAS, TOWN and DEVELOPER find such modifications as specifically set forth in this First Modification to be necessary and to reflect their agreements and do further understand and agree that all other terms of the Agreement not expressly modify by this First Modification shall remain the same; NOW THEREFORE, IN CONSIDERATION of the foregoing, and for other good and valuable consideration, the parties hereto agree as follows: I. Incorporation of Agreement The Agreement is incorporated herein as if written word for word. Except as specifically provided below, all other terms and conditions of the Agreement shall remain unchanged and shall remain in full force and effect. In the event of any conflict or inconsistency between the provisions set forth in this First Modification and the Agreement, priority of interpretation shall be in the following order: First Modification; Agreement. Town Council Page 221 of 522 Meeting Date: Monday, April 7, 2014 II. Modification of Agreement 2.01 Modification of Section III “General Provisions”, Subsection E. “Final Acceptance of Infrastructure”. Effective as of the day and year first written above, Subsection “E.” entitled “Final Acceptance of infrastructure” of Section III entitled “General Provisions” of the Agreement is hereby modified so that the Subsection “E.” shall be and read in its entirety as follows and all other Sections and Subsections of the Agreement shall remain the same: E. Final Acceptance of Infrastructure. The TOWN will not issue a Building Permit for any lot until the public facilities and improvements identified in Items 1, 2, 3, 4, and 7, of Section II (A) above (referred to in this paragraph as “Partial Improvements”) are completely constructed to the satisfaction of the TOWN Engineer or his agent and in accordance with the stamped approved Construction Plans (Final Completion). Upon Substantial Completion of the Partial Improvements, a “punch list” of outstanding items shall be presented to the Developer’s contractor(s) indicating those outstanding items and their deficiencies that need to be addressed for Final Completion of the Partial Improvements. Upon Final Completion of the Partial Improvements, the Town will issue Building Permits for twenty percent (20%) of the 14 homes (a total of 3 homes) proposed to be constructed in this PROJECT in accordance with the terms of this section. The Town will process those permit applications based upon date and time of the filing of each permit application; provided however that permits will only be issued for the first three (3) applications for Building Permits that meet all requirements of applicable regulations and for which all applicable fees are timely paid. DEVELOPER shall complete Items 5, 6, 8, 9, and 10 listed in Paragraph II (A) herein (referred to in this paragraph as “Improvements”) within 180 days of the final acceptance of the Partial Improvements. The TOWN will not issue a Letter of Acceptance or certificates of occupancy for this PROJECT until all public facilities and improvements listed in Paragraph II (A) are completely constructed to the satisfaction of the TOWN Engineer or his agent and in accordance with the stamped approved Construction Plans (Final Completion). However, upon Substantial Completion, a “punch list” of outstanding items shall be presented to the Developer’s contractor(s) indicating those outstanding items and their deficiencies that need to be addressed for Final Completion of the Improvements for this PROJECT. IN WITNESS WHEREOF, this First Modification shall become effective after approval of the Town Council and after execution of this First Modification by each of the parties hereinto in accordance with the law. Town Council Page 222 of 522 Meeting Date: Monday, April 7, 2014 TOWN OF TROPHY CLUB, TEXAS Date: ______________ Connie White, Mayor Town of Trophy Club, Texas ATTEST: APPROVED AS TO FORM: Tammy Ard, Town Secretary Patricia A. Adams, Town Attorney Town of Trophy Club, Texas Town of Trophy Club, Texas STANDARD PACIFIC OF TEXAS, INC. Date: ______________ Town Council Page 223 of 522 Meeting Date: Monday, April 7, 2014 T o w n C o u n c i l P a g e 2 2 4 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 2 2 5 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 2 2 6 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 2 2 7 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 2 2 8 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 2 2 9 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 2 3 0 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 2 3 1 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 2 3 2 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 2 3 3 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 2 3 4 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 2 3 5 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 2 3 6 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 2 3 7 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 2 3 8 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 2 3 9 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 2 4 0 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 2 4 1 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1056-T Name: Status:Type:Agenda Item Public Hearing File created:In control:3/20/2014 Town Council On agenda:Final action:4/7/2014 Title:Conduct a Public Hearing to consider the advisability of the creation of Reinvestment Zone Number Two, Town of Trophy Club, Texas, for tax increment financing purposes, the proposed zone being located within the boundaries of the Town on approximately 45 acres and located in the south central portion of the Town of Trophy Club near the intersection of State Highway 114 and Trophy Club Drive and other matters related to the proposed Zone. Attachments: Action ByDate Action ResultVer. Conduct a Public Hearing to consider the advisability of the creation of Reinvestment Zone Number Two, Town of Trophy Club, Texas, for tax increment financing purposes, the proposed zone being located within the boundaries of the Townon approximately 45 acres and located in the south central portion of the Town of Trophy Club near the intersection of State Highway 114 and Trophy Club Drive and other matters related to the proposed Zone. Town Council Page 242 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1031-T Name: Status:Type:Agenda Item Regular Session File created:In control:3/20/2014 Town Council On agenda:Final action:4/7/2014 Title:Consider and take appropriate action regarding an Ordinance of the Town designating a certain contiguous geographic area in the Town as “Reinvestment Zone Number Two, Town of Trophy Club, Texas”; creating a Board of Directors for the Zone; providing effective and termination dates for the Zone; establishing a Tax Increment Fund for the Zone; containing other matters related to the Zone; and providing an effective date. Attachments:Staff Report - TIRZ #2 Creation Ordinance.pdf ORD 2014-09 Creation Ordinance for TIRZ #2.pdf TIRZ #2 Boundary.pdf TIRZ #2 Public Hearing Notice.pdf TIRZ #2 Preliminary Project and Financing Plan 4-3-2014.pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding an Ordinance of the Town designating a certain contiguous geographic area in the Town as “Reinvestment Zone Number Two, Town of Trophy Club, Texas”; creating a Board of Directors for the Zone; providing effective and termination dates for the Zone; establishing a Tax Increment Fund for the Zone; containing other matters related to the Zone; and providing an effective date. Town Council Page 243 of 522 Meeting Date: Monday, April 7, 2014 To: Mayor and Town Council From: Stephen Seidel, Assistant Town Manager CC: Mike Slye, Town Manager Tammy Ard, Town Secretary Re: TIRZ #2 Creation Ordinance Town Council Meeting, April 7, 2014 Agenda Item: Consider and take appropriate action regarding an Ordinance of the Town designating a certain contiguous geographic area in the Town as “Reinvestment Zone Number Two, Town of Trophy Club, Texas”; creating a Board of Directors for the Zone; providing effective and termination dates for the Zone; establishing a Tax Increment Fund for the Zone; containing other matters related to the Zone; and providing an effective date. Explanation: TIRZ #2 is approximately 45 acres and includes several property parcels which include the large 26 acre parcel (PD-30), approximately 1.5 acres located between 7-11 and First Financial Bank (PD-13), 300 Trophy Club Drive (office building), municipal facilities property, and portions of Indian Creek, Trophy Club Drive, and Municipal Drive. The majority of the property contained within the proposed TIRZ is undeveloped land. The required Public Hearing notice was printed on Friday, March 28, 2014 in the Star-Telegram. TIRZ projects will be based upon reimbursement created by incremental value generated by new development. The Town has proposed terms which include a 60-40 ad valorem split and $0.25 of the $1.00 General Fund sales tax. These terms match what was adopted for TIRZ #1. Eligible TIRZ projects include items such as water and sewer improvements, storm drainage improvements, streets and intersections, parks and recreation improvements, financing and administrative costs, and economic development grants. The Town will be formally approaching Denton County regarding their participation as well as the MUD. The attached Preliminary Project and Financing Plan will be discussed by the Town’s TIRZ consultant, David Pettit. It will be refined over the next few weeks, and the TIRZ#2 Board will need to approve the Preliminary Plan prior to Council taking official action tentatively scheduled for May 5. The Town Council will consider appointing the required TIRZ Board in a separate agenda item. Town Council Page 244 of 522 Meeting Date: Monday, April 7, 2014 Attachments: • Ordinance 2014-09 • TIRZ #2 Boundary Map • Public Hearing Notice • Preliminary Project and Financing Plan Town Council Goals: Goal #1: Safe and secure community. Maintain low crime rate Increase citizen awareness and involvement in crime prevention Provide superior Emergency Services Improve data security Goal #2: Business-Friendly Economic Development Create effective working relationships with businesses and developers Retain / Develop existing businesses Promote new commercial opportunities Goal # 3: Strong Partnerships and Community Involvement Create a positive regional identity Foster a well informed community Forge collaborative relationships with other governmental and public entities Support citizen volunteer opportunities Promote recreational / active lifestyle opportunities for all ages Goal #4: Healthy, Picturesque, and Environmentally Sound Promote recreational / active lifestyle opportunities for all ages Maintain neat and tidy appearance Improve property maintenance standards and code enforcement Develop / Enhance environmental and sustainability standards and programs Goal #5: Financial and Operational Stewardship Develop, recognize, and retain quality staff Implement strong financial management standards Improve effectiveness and efficiency of operational processes Maintain / Improve infrastructure and assets Provide cost-effective services Deliver responsible customer service Recommendation: Staff recommends approval of the ordinance designating a certain contiguous geographic area in the Town as “Reinvestment Zone Number Two, Town of Trophy Club, Texas”; creating a Board of Directors for the Zone; providing effective and termination dates for the Zone; establishing a Tax Increment Fund for the Zone. Town Council Page 245 of 522 Meeting Date: Monday, April 7, 2014 TOWN OF TROPHY CLUB, TEXAS ORDINANCE NO. 2014-09 AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS DESIGNATING A CERTAIN CONTIGUOUS GEOGRAPHIC AREA IN THE TOWN OF TROPHY CLUB AS "REINVESTMENT ZONE NUMBER TWO, TOWN OF TROPHY CLUB, TEXAS"; CREATING A BOARD OF DIRECTORS FOR THE ZONE; PROVIDING THE EFFECTIVE AND TERMINATION DATES FOR THE ZONE; ESTABLISHING A TAX INCREMENT FUND FOR THE ZONE; CONTAINING OTHER MATTERS RELATED TO THE ZONE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town Council desires to promote the development of a certain contiguous geographic area in the Town, which is more specifically described in Exhibit "A" of this Ordinance (the "Zone"), through the creation of a new reinvestment zone as authorized by and in accordance with the Tax Increment Financing Act, Texas Tax Code, Chapter 311; and WHEREAS, the Town has prepared a preliminary financing plan for the Zone, as required by Texas Tax Code, Section 311.003(b); and WHEREAS, on April 7, 2014, the Town Council held a public hearing regarding the creation of the Zone and its benefits to the Town and to property in the Zone and afforded a reasonable opportunity for (i) all interested persons to speak for or against the creation of the Zone, its boundaries or the concept of tax increment financing and (ii) owners of real property in the Zone to protest inclusion of their property in the Zone, as required by Texas Tax Code, Sections 311.003(c) and (d); and WHEREAS, no owner of real property in the proposed zone protested the inclusion of their property in the proposed zone; and WHEREAS, notice of the public hearing was published in a newspaper of general circulation in the Town on March 28, 2014, which satisfies the requirement of Texas Tax Code, Section 311.003(c) that publication of the notice occur not later than the seventh day before the date of the public hearing; and WHEREAS, the Town has provided all information and made all presentations, given all notices and done all other actions required by Chapter 311, Texas Tax Code, or other law as a condition to the creation of the proposed zone; NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: SECTION 1. Findings. (a) That the facts and recitations contained in the preamble of this Ordinance are hereby found and declared to be true and correct and are adopted as part of this Ordinance for all purposes. (b) That the Town Council further finds and declares that the proposed improvements in the zone will significantly enhance the value of all the taxable real property in the proposed zone and will be of general benefit to the Town. Town Council Page 246 of 522 Meeting Date: Monday, April 7, 2014 (c) Area within the Zone meets the criteria for designation of a reinvestment zone and satisfies the requirement of Section 311.005, Texas Tax Code, to-wit: (A) includes land that substantially arrests or impairs the sound growth of the Town, retards the provision of housing accommodations, or constitutes an economic or social liability and be a menace to the public health, safety, morals, or welfare in its present condition and use because of the presence of: (i) the predominance of defective or inadequate sidewalk or street layout; (ii) faulty lot layout in relation to size, adequacy, accessibility, or usefulness; and (iii) the deterioration of site or other improvements; and (B) is predominantly open or undeveloped and, because of obsolete platting, deterioration of structures or site improvements, or other factors, substantially impairs or arrests the sound growth of the municipality or county. (d) That the Town Council, pursuant to the requirements of Chapter 311, Texas Tax Code, further finds and declares: (1) That the proposed zone is a contiguous geographic area located wholly within the corporate limits of the Town of Trophy Club; (2) That the total appraised value of taxable real property in the proposed zone and in existing reinvestment zones does not exceed fifty percent of the total appraised value of taxable real property in the Town; (3) That thirty percent or less of the property in the Zone, excluding property dedicated to public use, is used for residential purposes (defined as any property occupied by a house have fewer than five living units); and (4) That the development or redevelopment of the property in the proposed zone will not occur solely through private investment in the reasonably foreseeable future. SECTION 2. Designation of Zone. That the Town Council hereby designates the Zone described in the boundary description and depicted in the map, both attached hereto as Exhibit “A” and made a part of this Ordinance for all purposes, as a reinvestment zone pursuant to and in accordance with Chapter 311, Texas Tax Code. This reinvestment zone shall be known as “Reinvestment Zone Number Two, Town of Trophy Club, Texas.” SECTION 3. Zone Board of Directors. That a board of directors for the Zone (“Board”) is hereby created. The Board shall consist of five (5) members who shall serve for staggered terms of two (2) years each with two (2) members having an initial term of one (1) year each. Of these five (5) members, each taxing unit other than the Town that contributes incremental taxes to the TIF Fund may, but is not required to, appoint one (1) member to the Board. After each taxing unit other than the Town designates to the Town either the name of the member that the taxing unit wishes to appoint or the fact that the taxing unit wishes to waive its right to appoint a member, the Town Council shall appoint whatever number of members are necessary to fill the remaining positions on the Board. The Town Council shall appoint a chairman of the Board and the Board may elect a vice chairman and such other officers as the Board sees fit. The Board shall make recommendations to the Town Council concerning the administration, management and operation of the Zone. The Board shall prepare and adopt a project plan and a reinvestment zone financing plan for the Zone and submit such plans to the Town Council for its Town Council Page 247 of 522 Meeting Date: Monday, April 7, 2014 approval. The Board shall perform all duties imposed upon it by Chapter 311, Texas Tax Code and all other applicable laws. Notwithstanding anything to the contrary herein, the Board shall not be authorized to (i) issue bonds; (ii) impose taxes or fees; (iii) exercise the power of eminent domain; or (iv) give final approval to the Zone’s project plan and financing plan. SECTION 4. Term of Zone. That the Zone shall take effect upon the adoption of this Ordinance and terminate on the earlier of (i) December 31, 2046 or an earlier termination date designated by an ordinance adopted after the effective date of this Ordinance or (ii) the date on which all project costs, tax increment bonds and interest on those bonds have been paid in full. SECTION 5. Determination of Tax Increment Base. That the tax increment base for the Zone, as defined by Section 311.012(c), Texas Tax Code, shall be the total appraised value of all real property in the Zone taxable by a taxing unit for the year 2014, which is the year in which the Zone was designated as a reinvestment zone. SECTION 6. Tax Increment Fund. That a tax increment fund for the Zone (the “TIF Fund”) is hereby established. The TIF Fund may be divided into additional accounts and sub-accounts authorized by resolution or ordinance of the Town Council. The TIF Fund shall consist of (i) the percentage of the tax increment, as defined by Section 311.012(a), Texas Tax Code, that each taxing unit which levies real property taxes in the Zone, other than the Town, has elected to dedicate to the TIF Fund under an agreement with the Town authorized by Section 311.013(f), Texas Tax Code, plus (ii) sixty percent (60%) of the Town’s portion of the tax increment, as defined by section 311.012(a), Texas Tax Code, subject to any binding agreement executed at any time by the Town that pledges a portion of such tax increment or an amount of other legally available funds whose calculation is based on receipt of any portion of such tax increment and (iii) twenty-five percent (25%) of the Town’s one percent (1%) general sales tax rate, as defined by section 311.0123(b), generated from taxable sales within the Zone above the sale tax base. The TIF Fund shall be maintained in an account at the depository bank of the Town and shall be secured in the manner prescribed by law for Texas cities. In addition, all revenues from (i) the sale of any obligations hereafter issued by the Town and secured in whole or in part from the tax increments; (ii) the sale of any property acquired as part of a tax increment financing plan adopted by the Board; and (iii) other revenues dedicated to and used in the Zone shall be deposited into the TIF Fund. Prior to the termination of the Zone, money shall be disbursed from the Tax Increment Fund only to pay project costs, as defined by the Texas Tax Code, for the Zone, to satisfy the claims of holders of tax increments bonds or notes issued for the Zone, or to pay obligations incurred pursuant to agreements entered into to implement the project plan and reinvestment zone financing plan and achieve their purpose pursuant to Section 311.010(b), Texas Tax Code. SECTION 7. Tax Increment Agreements. That, pursuant to Sections 311.008 and 311.013, Texas Tax Code, the Mayor and Town Attorney are hereby authorized to execute and deliver, for and on behalf of the Town, tax increment agreements with taxing units that levy real property taxes in the Zone. Town Council Page 248 of 522 Meeting Date: Monday, April 7, 2014 SECTION 8. Severability. That if any portion, section or part of a section of this Ordinance is subsequently declared invalid, inoperative or void for any reason by a court of competent jurisdiction, the remaining portions, sections or parts of sections of this Ordinance shall be and remain in full force and effect and shall not in any way be impaired or affected by such decision, opinion or judgment. SECTION 9. It is hereby found, determined and declared that a sufficient written notice of the date, hour, place and subject of the meeting of the Town Council at which this Ordinance was adopted was posted at a place convenient and readily accessible at all times to the general public at the Town Hall of the Town for the time required by law preceding its meeting, as required by the Open Meetings Law, Texas Government Code, Chapter. 551, and that this meeting has been open to the public as required by law at all times during which this Ordinance and the subject matter hereof has been discussed, considered and formally acted upon. The Town Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Open Meetings. SECTION 10. The contents of the notice of the public hearing, which hearing was held before the Town Council on April 7, 2014, and the publication of said notice, are hereby ratified, approved and confirmed. Notices. SECTION 11. Engrossment and Enrollment. The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this Ordinance in accordance with the Town Charter. SECTION 12. That this Ordinance shall take effect and be in full force and effect from and after its adoption. Effective Date. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this the 7th day of April, 2014. _________________________________________ Mayor, Connie White Town of Trophy Club, Texas ATTEST: _________________________________________ Town Secretary, Tammy Ard Town of Trophy Club, Texas Town Council Page 249 of 522 Meeting Date: Monday, April 7, 2014 APPROVED AS TO FORM: _________________________________________ Town Attorney, Patricia A. Adams Town of Trophy Club, Texas Town Council Page 250 of 522 Meeting Date: Monday, April 7, 2014 Exhibit “A” Boundary Description Beginning at the intersection of the northern Right-of-Way (ROW) line of State Highway 114 and the eastern property line of Abstract 823 C. Medlin Survey, Tract 22, thence West along the northern ROW line of State Highway 114, to a point where said line intersects with the western ROW line of Trophy Club Drive, thence North along the western ROW line of Trophy Club Drive, to a point where said line intersects with the western property line of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3, thence Northwest along the western property line of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3,v to a point where said line intersects with the northern boundary of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3, thence Northeastward along the northern property line of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3, to a point where said line intersects with the eastern boundary of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3, thence Southeast along the eastern boundary of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3, to a point where said line intersects with the western ROW line of Trophy Club Drive, thence Northeastward along the western ROW line of Trophy Club Drive, to a point where said line intersects with the southern property line of Abstract 823 C. Medlin Survey, Municipal Utility District NO. 1 Complex (MUD Complex), Block 1, Lot 1, thence West along the southern property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 1, to a point where said line intersects with the southern property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 2, thence West along the southern property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 2, to a point where said line intersects with the western property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 2, thence North along the western property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 2, to a point where said line intersects with the western property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 3, thence North along the western property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 3, to a point where said line intersects with the northern property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 3, thence East along the northern property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 3, to a point where said line intersects with the northern ROW Line of Municipal Drive, thence East along the northern property line of northern ROW Line of Municipal Drive, to a point where said line intersects with the western ROW line of Trophy Club Drive, thence North along the western ROW line of Trophy Club Drive to a point where said line intersects with the projection of the northern property line of Abstract 823 C. Medlin Survey, Tract 1A, thence East along the northern property line of Abstract 823 C. Medlin Survey, Tract 1A, to a point where said line intersects with the eastern property line of Abstract 823 C. Medlin Survey, Tract 1A, thence South along the eastern property line of Abstract 823 C. Medlin Survey, Tract 1A, to a point where said line intersects with the southern property line of Abstract 823 C. Medlin Survey, Tract 1A, thence West along the southern property line of Abstract 823 C. Medlin Survey, Tract 1A to a point where said line intersects with the eastern ROW line of Trophy Club Drive, thence South along the eastern ROW line of Trophy Club Drive to a point where said line intersects with the eastern ROW line of Indian Creek Drive, thence Town Council Page 251 of 522 Meeting Date: Monday, April 7, 2014 Southeastward along the eastern ROW line of Indian Creek Drive to a point where said line intersects with the project ion of the eastern property line of Abstract 823 C. Medlin Survey, Tract 22, thence South along the eastern property line of Abstract 823 C. Medlin Survey, Tract 22 to a point where said line intersects with the northern ROW line of State Highway 114, which is the point of beginning. Town Council Page 252 of 522 Meeting Date: Monday, April 7, 2014 Exhibit “A” Map Town Council Page 253 of 522 Meeting Date: Monday, April 7, 2014 Town Council Page 254 of 522 Meeting Date: Monday, April 7, 2014 Public Hearing Notice NOTICE OF PUBLIC HEARING OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB TO CONSIDER THE ADVISABILITY OF THE CREATION OF REINVESTMENT ZONE NUMBER TWO, TOWN OF TROPHY CLUB, TEXAS FOR TAX INCREMENT FINANCING PURPOSES PURSUANT TO CHAPTER 311, TEXAS TAX CODE NOTICE IS HEREBY GIVEN THAT the Town Council of the Town of Trophy Club, Texas (the “Town”), pursuant to Chapter 311.003 Local Government Code, as amended, (the “Act”), will hold a public hearing at 7:00 p.m. on Monday, April 7, 2014, at the Svore Municipal Building located at 100 Municipal Drive, Trophy Club, Texas 76262, for the purpose of considering the establishment of Reinvestment Zone Number Two located within the boundaries of the Town. All persons are invited to attend the hearing and speak for or against the creation of Reinvestment Zone Number Two, the proposed boundary, or the concept of tax increment financing. Owners of property in the proposed Zone may protest orally or in writing the inclusion of their property in the Zone. The Tax increment Reinvestment Zone would include the property as depicted below. The legal description of the Reinvestment Zone and a copy of the boundary map is on file and open for public inspection in the office of the Town Secretary at the address stated above. Questions or requests for additional information may be directed to David Pettit, David Pettit Economic Development, LLC, dpettit@dpedllc.com; 817-439-9515. Boundaries: Reinvestment Zone Number Two, Town of Trophy Club, Texas The Town of Trophy Club Tax Increment Reinvestment Zone (TIRZ) #2 is approximately 45 acres and is located in the south central portion of the Town of Trophy Club near the intersection of State Highway 114 and Trophy Club Drive. A full description of the boundaries of the proposed Reinvestment Zone Number Two, Town of Trophy Club, Texas is available at the Svore Municipal Building located at 100 Municipal Drive, Trophy Club, Texas 76262. Town Council Page 255 of 522 Meeting Date: Monday, April 7, 2014 Tax Increment Reinvestment Zone #2 Town of Trophy Club, Texas PRELIMINARY PROJECT AND FINANCING PLAN Town Council Page 256 of 522 Meeting Date: Monday, April 7, 2014 DISCLAIMER Our conclusions and recommendations are based on current market conditions and the expected performance of the national, and/or local economy and real estate market. Given that economic conditions can change and real estate markets are cyclical, it is critical to monitor the economy and real estate market continuously, and to revisit key project assumptions periodically to ensure that they are still justified. The future is difficult to predict, particularly given that the economy and housing markets can be cyclical, as well as subject to changing consumer and market psychology. There will usually be differences between projected and actual results because events and circumstances frequently do not occur as expected, and the differences may be material. 1 3 2 4 5 Table of Contents Introduction TIRZ Boundary Current Conditions & Ownership Project Plan Anticipated Development 6 7 8 Financial Feasibility Analysis Terms and Conditions Exhibit A 1 2 6 3 7 8 29 30 Preliminary Project and Financing Plan, TIRZ #2Town Council Page 257 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 1 Introduction Tax Increment Reinvestment Zone #2, Town of Trophy Club The Town of Trophy Club Tax Increment Reinvestment Zone (TIRZ) #2 is approximately 45 acres and is located in the south central portion of the Town of Trophy Club near the intersection of State Highway 114 and Trophy Club Drive. The majority of the land within the TIRZ is currently vacant. Exceptions include the small office space at the corner of Trophy Club Drive and Indian Creek Drive and the current municipal complex The goal of the TIRZ is to facilitate the development of the currently vacant land with retail, office, residential, municipal and hospitality uses, while creating a unique cohesive development that builds on the high developments standards already established within the Town. The TIRZ will support these developments through the contribution of 60% of the Town’s real property increment, and 25% of the Town’s $0.01 general fund sales tax generated within the zone. Additionally, it is proposed that Denton County and the Municipal Utility District (MUD) would contribute 60% of its revenue to the TIRZ fund. Without the implementation of the TIRZ, the delineated property would continue to impair the sound growth of the municipality. Custom Map July 23, 2013 Made with Esri Business Analyst ©2013 Esri www.esri.com/ba 800-447-9778 Try it Now! Page 1 of 1 Source: Esri, DigitalGlobe, GeoEye, i-cubed, USDA, USGS, AEX, Getmapping, Aerogrid, IGN, IGP, swisstopo, and the GIS User Community Town Council Page 258 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 2 TIRZ Boundary TIRZ Boundary Description Beginning at the intersection of the northern Right-of-Way (ROW) line of State Highway 114 and the eastern property line of Abstract 823 C. Medlin Survey, Tract 22, thence West along the northern ROW line of State Highway 114, to a point where said line intersects with the western ROW line of Trophy Club Drive, thence North along the western ROW line of Trophy Club Drive, to a point where said line intersects with the western property line of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3, thence Northwest along the western property line of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3,v to a point where said line intersects with the northern boundary of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3, thence Northeastward along the northern property line of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3, to a point where said line intersects with the eastern boundary of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3, thence Southeast along the eastern boundary of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3, to a point where said line intersects with the western ROW line of Trophy Club Drive, thence Northeastward along the western ROW line of Trophy Club Drive, to a point where said line intersects with the southern property line of Abstract 823 C. Medlin Survey, Municipal Utility District NO. 1 Complex (MUD Complex), Block 1, Lot 1, thence West along the southern property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 1, to a point where said line intersects with the southern property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 2, thence West along the southern property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 2, to a point where said line intersects with the western property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 2, thence North along the western property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 2, to a point where said line intersects with the western property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 3, thence North along the western property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 3, to a point where said line intersects with the northern property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 3, thence East along the northern property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 3, to a point where said line intersects with the northern ROW Line of Municipal Drive, thence East along the northern property line of northern ROW Line of Municipal Drive , to a point where said line intersects with the western ROW line of Trophy Club Drive, thence North along the western ROW line of Trophy Club Drive to a point where said line intersects with the projection of the northern property line of Abstract 823 C. Medlin Survey, Tract 1A, thence East along the northern property line of Abstract 823 C. Medlin Survey, Tract 1A, to a point where said line intersects with the eastern property line of Abstract 823 C. Medlin Survey, Tract 1A, thence South along the eastern property line of Abstract 823 C. Medlin Survey, Tract 1A, to a point where said line intersects with the southern property line of Abstract 823 C. Medlin Survey, Tract 1A, thence West along the southern property line of Abstract 823 C. Medlin Survey, Tract 1A to a point where said line intersects with the eastern ROW line of Trophy Club Drive, thence South along the eastern ROW line of Trophy Club Drive to a point where said line intersects with the eastern ROW line of Indian Creek Drive, thence Southeastward along the eastern ROW line of Indian Creek Drive to a point where said line intersects with the project ion of the eastern property line of Abstract 823 C. Medlin Survey, Tract 22, thence South along the eastern property line of Abstract 823 C. Medlin Survey, Tract 22 to a point where said line intersects with the northern ROW line of State Highway 114, which is the point of beginning. Town Hall HWY 1 1 4 TROP H Y C L U B D R I N D I A N C R E E K D R HOGAN S D R SUNSE T D R WILS H I R E D R C Y P R E S S C T C A R N O U S T I E D R H A Y E S C T L E E C T BERKS H I R E C T LA K E F O R E S T C T S P Y G L A S S C T P O R T L A N D D R WE S T L A K E P K W Y COLO N I A L C T H A M P E R C T MUNICIPAL DR SUMMI T C O V E BROO K H O L L O W L N M I C H E L L E C T C E N T U R Y C T ST A N D R E W S C T TR O O N C T HWY 1 1 4 TROP H Y C L U B D R HWY 1 1 4 Eastern property line of Abstract 823 C. Medlin Survey, Tract 22 Northern Right-of-Way (ROW) line of State Highway 114 and the eastern property line of Abstract 823 C. Medlin Survey, Tract 22 Northern ROW Line of State Highway 114 Western ROW Line of Trophy Club Drive Western property line of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3 Northern property line of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3 Eastern property line of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3 Western ROW Line of Trophy Club Drive Southern property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 1Southern property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 2 Western property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 2 Western property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 3 Northern property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 3 Northern ROW Line of Municipal Drive Northern property line of Abstract 823 C. Medlin Survey, Tract 1A Eastern property line of Abstract 823 C. Medlin Survey, Tract 1A Southern property line of Abstract 823 C. Medlin Survey, Tract 1A Eastern ROW Line of Trophy Club Drive Eastern ROW Line of Indian Creek Drive Town Council Page 259 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 3 Current Conditions Land Use The majority of the land within the TIRZ is currently vacant. The one exception is the small office space at the corner of Trophy Club Drive and Indian Creek Drive. Method of Relocating Persons to be Displaced The majority of the land is currently vacant undeveloped land and it is not anticipated that any persons will be displaced or need to be relocated as result of implementing the TIRZ. Looking south with SH-114 in the background Looking west with SH-114 on the left Looking north with SH-114 in the foreground Looking east with SH-114 on the right Town Council Page 260 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 4 Current Conditions Zoning The TIRZ property is to be an area with a mixture of moderately intense uses that are developed over an identifiable core. Buildings are close to and oriented toward the street. There is a connected street pattern, shared parking, and pedestrian amenities As new development is advanced it is likely that the current zoning will be change to accommodate the development. It is not anticipated that there will be any changes to the building code or other municipal ordinances at this time. Town Council Page 261 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 5 Current Conditions Current Ownership Information There are a three different property owners throughout the TIRZ, but the majority of land is owned by JSB Properties LP and Trophy Club Municipal. The TIRZ has a 2013 taxable base value of $5,589,082 and a sales tax base of $0.00. For a full list of parcels included within the TIRZ see Exhibit A. 65145017510020000 65019643010020700 65019643010020400 65145017510030000 HWY 1 1 4 TROP H Y C L U B D R I N D I A N C R E E K D R HOGAN S D R SUNSE T D R WILS H I R E D R C Y P R E S S C T C A R N O U S T I E D R H A Y E S C T L E E C T BERKS H I R E C T LA K E F O R E S T C T S P Y G L A S S C T P O R T L A N D D R WE S T L A K E P K W Y COLO N I A L C T H A M P E R C T MUNICIPAL DR SUMMI T C O V E PRECI N C T L I N E R D BROO K H O L L O W L N M I C H E L L E C T C E N T U R Y C T ST A N D R E W S C T BROOK H O L L O W C T TR O O N C T HWY 1 1 4 TROP H Y C L U B D R HWY 1 1 4 151108 171494 171495 68347 171493335141 35140 35139 185201 Town Council Page 262 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 6 Project Plan Project Costs of the Zone There are a number of improvements within Tax Increment Reinvestment Zone #2 that will be financed by in part by incremental real property and sales tax generated within the TIRZ. The costs illustrated in the table above are estimates and may be revised. Savings from one line item may be applied to a cost increase in another line item. It is estimated that project costs obligations will arise with new developments and will be reimbursed by the TIRZ on a pay as you go basis. TIRZ Project Costs Amount Water Facilities and Improvements 6,500,000$ Sanitary Sewer Facilities and Improvements 5,000,000$ Storm Water Facilities and Improvements 4,500,000$ Street and Intersection Improvements 9,000,000$ Open Space, Park and Recreation Facilities and Improvements 5,000,000$ Economic Development Grants 3,500,000$ Project Financing Costs 500,000$ Administrative Costs 200,000$ Total 34,200,000$ Town Council Page 263 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 7 Anticipated Development Anticipated Development There are several projects anticipated to be developed within TIRZ #2 including restaurants, office space, hospitality and residential. The map to the left provides an overview of potential developments that we believe will occur during the life of the TIRZ along with estimated dates of when the incremental revenue will flow into the TIRZ fund. Site plans on the map to the left should be considered conceptual drafts at this point and may not accurately portray the final developments. Town Council Page 264 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 8 Financial Feasibility Analysis Method of Financing To fund the public improvements outlined on the previous pages, it is anticipated that the Town of Trophy Club will contribute 60% of its incremental real property tax revenue and 25% of its $0.01 General Fund Sales Tax to the TIRZ Fund. Additionally, it is proposed that Denton County and the Municipal Utility District (MUD) would contribute 60% of its revenue to the TIRZ fund. Town of Trophy Club TIRZ #2 Participation Overview TIRZ Participation Overview Ad Valorem Tax Rate Participation %Participation Rate Trophy Club 0.5185430 60.00%0.3111258 Northwest ISD 1.3750000 0.00%0.0000000 Denton County 0.2828670 60.00%0.1697202 Trophy CLUB MUD 1 0.1333900 0.00%0.0000000 Total 2.3098000 0.4808460 Sales Tax Rate Participation %Participation Rate Town of Trophy Club General Fund 1.00%25.00%0.25% EDC 0.50%0.00%0.00% Crime Control 0.50%0.00%0.00% Street Maintenance 0.50%0.00%0.00% Total 2.00%0.25% Debt Service It is not anticipated at this time that the TIRZ will incur any bonded indebtedness. Economic Feasibility Study A taxable value analysis was developed as part of the preliminary project and financing plan to determine the economic feasibility of the project. The study examined the expected tax revenue the TIRZ would receive based on the previously outlined developments. A summary overview of the anticipated development square footages, the anticipated sales per square foot and the anticipated taxable value per square foot can be found to the right. The following pages show the estimated captured appraised value of the zone during each year of its existence and the net benefits of the zone to each of the local taxing jurisdictions. Utilizing the information outlined in this feasibility study, we have found that the TIRZ is economically feasible and will provide the Town with economic benefits that would not occur without its implementation. Anticipated Revenue Summary Based upon the assumptions above, the anticipated gross revenue of TIRZ #2 over its 32 year life is shown below. • Total Sales Tax Revenue $4,011,977 • Total Ad Valorem $30,179,796 • Total Revenue $34,191,773 TIF #2 Mixed Use Development Overview by Block Block Use Square Feet/Units Appraised Value PSF/Unit Estimated Appraised Value First Year of Tax Revenue A Retail 38,300 300$ 11,490,000$ 2017 B Retail 78,162 300$ 23,448,600$ 2017 B Multifamily 250 80,000$ 20,000,000$ 2017 C Office 160,000 200$ 32,000,000$ 2018 D Retail 17,054 300$ 5,116,200$ 2019 F Retail 23,700 300$ 7,110,000$ 2019 F Office 12,000 200$ 2,400,000$ 2019 G Office 40,000 200$ 8,000,000$ 2019 H Hotel 200 90,000$ 18,000,000$ 2019 H Retail 13,765 300$ 4,129,500$ 2020 I Brownstones 30 200,000$ 6,000,000$ 2017 H Office 100,000 200$ 20,000,000$ 2020 Total 157,694,300$ Town Council Page 265 of 522 Meeting Date: Monday, April 7, 2014 TAXABLE BASE YEAR GROWTH 2.00% DISCOUNT RATE 6.00% Sales Tax Participation Trophy Club 0.4993000 60% 0.2995800 Trophy Club 0.4993000 0% 0.0000000 Northwest ISD 1.4525000 0% 0.0000000 Northwest ISD 1.4525000 0% 0.0000000 Denton County 0.2849140 60% 0.1709484 Denton County 0.2849140 0% 0.0000000 Trophy CLUB MUD 1 0.1333900 60% 0.0800340 Trophy CLUB MUD 1 0.1333900 0% 0.0000000 2.3701040 0.5505624 2.3701040 0.0000000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 REVENUE YEAR 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 TOTALS BASE YEAR Trophy Club 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 Northwest ISD 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 Denton County 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 Trophy CLUB MUD 1 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 TAXABLE VALUE Trophy Club 5,700,864 5,814,881 5,931,179 6,049,802 6,170,798 6,294,214 6,420,098 6,548,500 6,679,470 6,813,060 6,949,321 7,088,307 7,230,074 7,374,675 7,522,169 7,672,612 7,826,064 7,982,585 8,142,237 8,305,082 8,471,183 8,640,607 8,813,419 8,989,688 9,169,481 9,352,871 9,539,928 9,730,727 9,925,342 10,123,848 10,326,325 10,532,852 Northwest ISD 5,700,864 5,814,881 5,931,179 6,049,802 6,170,798 6,294,214 6,420,098 6,548,500 6,679,470 6,813,060 6,949,321 7,088,307 7,230,074 7,374,675 7,522,169 7,672,612 7,826,064 7,982,585 8,142,237 8,305,082 8,471,183 8,640,607 8,813,419 8,989,688 9,169,481 9,352,871 9,539,928 9,730,727 9,925,342 10,123,848 10,326,325 10,532,852 Denton County 5,700,864 5,814,881 5,931,179 6,049,802 6,170,798 6,294,214 6,420,098 6,548,500 6,679,470 6,813,060 6,949,321 7,088,307 7,230,074 7,374,675 7,522,169 7,672,612 7,826,064 7,982,585 8,142,237 8,305,082 8,471,183 8,640,607 8,813,419 8,989,688 9,169,481 9,352,871 9,539,928 9,730,727 9,925,342 10,123,848 10,326,325 10,532,852 Trophy CLUB MUD 1 5,700,864 5,814,881 5,931,179 6,049,802 6,170,798 6,294,214 6,420,098 6,548,500 6,679,470 6,813,060 6,949,321 7,088,307 7,230,074 7,374,675 7,522,169 7,672,612 7,826,064 7,982,585 8,142,237 8,305,082 8,471,183 8,640,607 8,813,419 8,989,688 9,169,481 9,352,871 9,539,928 9,730,727 9,925,342 10,123,848 10,326,325 10,532,852 TAXABLE VALUE INCREMENT Trophy Club 111,782 225,799 342,097 460,720 581,716 705,132 831,016 959,418 1,090,388 1,223,978 1,360,239 1,499,225 1,640,992 1,785,593 1,933,087 2,083,530 2,236,982 2,393,503 2,553,155 2,716,000 2,882,101 3,051,525 3,224,337 3,400,606 3,580,399 3,763,789 3,950,846 4,141,645 4,336,260 4,534,766 4,737,243 4,943,770 Northwest ISD 111,782 225,799 342,097 460,720 581,716 705,132 831,016 959,418 1,090,388 1,223,978 1,360,239 1,499,225 1,640,992 1,785,593 1,933,087 2,083,530 2,236,982 2,393,503 2,553,155 2,716,000 2,882,101 3,051,525 3,224,337 3,400,606 3,580,399 3,763,789 3,950,846 4,141,645 4,336,260 4,534,766 4,737,243 4,943,770 Denton County 111,782 225,799 342,097 460,720 581,716 705,132 831,016 959,418 1,090,388 1,223,978 1,360,239 1,499,225 1,640,992 1,785,593 1,933,087 2,083,530 2,236,982 2,393,503 2,553,155 2,716,000 2,882,101 3,051,525 3,224,337 3,400,606 3,580,399 3,763,789 3,950,846 4,141,645 4,336,260 4,534,766 4,737,243 4,943,770 Trophy CLUB MUD 1 111,782 225,799 342,097 460,720 581,716 705,132 831,016 959,418 1,090,388 1,223,978 1,360,239 1,499,225 1,640,992 1,785,593 1,933,087 2,083,530 2,236,982 2,393,503 2,553,155 2,716,000 2,882,101 3,051,525 3,224,337 3,400,606 3,580,399 3,763,789 3,950,846 4,141,645 4,336,260 4,534,766 4,737,243 4,943,770 REVENUE A TAXABLE VALUE GROWTH OF EXISTING PROPERTIES Trophy Club 335 676 1,025 1,380 1,743 2,112 2,490 2,874 3,267 3,667 4,075 4,491 4,916 5,349 5,791 6,242 6,702 7,170 7,649 8,137 8,634 9,142 9,659 10,188 10,726 11,276 11,836 12,408 12,991 13,585 14,192 14,811 219,537 Trophy Club Northwest ISD 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Northwest ISD Denton County 191 386 585 788 994 1,205 1,421 1,640 1,864 2,092 2,325 2,563 2,805 3,052 3,305 3,562 3,824 4,092 4,365 4,643 4,927 5,217 5,512 5,813 6,121 6,434 6,754 7,080 7,413 7,752 8,098 8,451 125,274 Denton County Trophy CLUB MUD 1 89 181 274 369 466 564 665 768 873 980 1,089 1,200 1,313 1,429 1,547 1,668 1,790 1,916 2,043 2,174 2,307 2,442 2,581 2,722 2,866 3,012 3,162 3,315 3,470 3,629 3,791 3,957 58,650 Trophy CLUB MUD 1 npv @ 6% SUBTOTAL A 122,143 615 1,243 1,883 2,537 3,203 3,882 4,575 5,282 6,003 6,739 7,489 8,254 9,035 9,831 10,643 11,471 12,316 13,178 14,057 14,953 15,868 16,801 17,752 18,722 19,712 20,722 21,752 22,802 23,874 24,967 26,081 27,219 403,461 REVENUE #1 - BLOCK A REAL PROPERTY TAX 0 0 5,745,000 11,490,000 11,719,800 11,954,196 12,193,280 12,437,146 12,685,888 12,939,606 13,198,398 13,462,366 13,731,614 14,006,246 14,286,371 14,572,098 14,863,540 15,160,811 15,464,027 15,773,308 16,088,774 16,410,549 16,738,760 17,073,536 17,415,006 17,763,306 18,118,573 18,480,944 18,850,563 19,227,574 19,612,126 20,004,368 BUSINESS PERSONAL PROPERTY 0 0 383,000 766,000 781,320 796,946 812,885 829,143 845,726 862,640 879,893 897,491 915,441 933,750 952,425 971,473 990,903 1,010,721 1,030,935 1,051,554 1,072,585 1,094,037 1,115,917 1,138,236 1,161,000 1,184,220 1,207,905 1,232,063 1,256,704 1,281,838 1,307,475 1,333,625 Trophy Club 0 0 17,211 34,422 35,110 35,812 36,529 37,259 38,004 38,764 39,540 40,331 41,137 41,960 42,799 43,655 44,528 45,419 46,327 47,254 48,199 49,163 50,146 51,149 52,172 53,215 54,280 55,365 56,473 57,602 58,754 59,929 1,352,507 Trophy Club Northwest ISD 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Northwest ISD Denton County 0 0 9,821 19,642 20,035 20,436 20,844 21,261 21,686 22,120 22,562 23,014 23,474 23,943 24,422 24,911 25,409 25,917 26,436 26,964 27,504 28,054 28,615 29,187 29,771 30,366 30,973 31,593 32,225 32,869 33,527 34,197 771,777 Denton County Trophy CLUB MUD 1 0 0 4,598 9,196 9,380 9,567 9,759 9,954 10,153 10,356 10,563 10,774 10,990 11,210 11,434 11,663 11,896 12,134 12,376 12,624 12,876 13,134 13,397 13,665 13,938 14,217 14,501 14,791 15,087 15,389 15,696 16,010 361,328 Trophy CLUB MUD 1 npv @ 6% SUBTOTAL #1 919,212 0 0 31,630 63,260 64,525 65,815 67,132 68,474 69,844 71,241 72,665 74,119 75,601 77,113 78,655 80,228 81,833 83,470 85,139 86,842 88,579 90,350 92,157 94,000 95,880 97,798 99,754 101,749 103,784 105,860 107,977 110,137 2,485,612 REVENUE #2 - BLOCK B + I REAL PROPERTY TAX 0 0 24,724,300 37,086,450 49,448,600 50,437,572 51,446,323 52,475,250 53,524,755 54,595,250 55,687,155 56,800,898 57,936,916 59,095,654 60,277,567 61,483,119 62,712,781 63,967,037 65,246,378 66,551,305 67,882,331 69,239,978 70,624,777 72,037,273 73,478,018 74,947,579 76,446,530 77,975,461 79,534,970 81,125,670 82,748,183 84,403,147 BUSINESS PERSONAL PROPERTY 0 0 844,120 1,266,180 1,688,240 1,722,005 1,756,445 1,791,574 1,827,405 1,863,953 1,901,232 1,939,257 1,978,042 2,017,603 2,057,955 2,099,114 2,141,097 2,183,918 2,227,597 2,272,149 2,317,592 2,363,944 2,411,222 2,459,447 2,508,636 2,558,809 2,609,985 2,662,184 2,715,428 2,769,737 2,825,131 2,881,634 Trophy Club 0 0 74,069 111,104 148,138 151,101 154,123 157,205 160,349 163,556 166,828 170,164 173,567 177,039 180,580 184,191 187,875 191,632 195,465 199,374 203,362 207,429 211,578 215,809 220,125 224,528 229,019 233,599 238,271 243,036 247,897 252,855 5,673,869 Trophy Club Northwest ISD 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Northwest ISD Denton County 0 0 42,266 63,399 84,532 86,222 87,947 89,706 91,500 93,330 95,196 97,100 99,042 101,023 103,044 105,104 107,206 109,351 111,538 113,768 116,044 118,365 120,732 123,147 125,609 128,122 130,684 133,298 135,964 138,683 141,457 144,286 3,237,662 Denton County Trophy CLUB MUD 1 0 0 19,788 29,682 39,576 40,367 41,175 41,998 42,838 43,695 44,569 45,460 46,369 47,297 48,243 49,207 50,192 51,195 52,219 53,264 54,329 55,416 56,524 57,654 58,807 59,984 61,183 62,407 63,655 64,928 66,227 67,551 1,515,797 Trophy CLUB MUD 1 npv @ 6% SUBTOTAL #2 3,830,930 0 0 136,123 204,184 272,245 277,690 283,244 288,909 294,687 300,581 306,593 312,724 318,979 325,358 331,866 338,503 345,273 352,178 359,222 366,406 373,735 381,209 388,833 396,610 404,542 412,633 420,886 429,304 437,890 446,647 455,580 464,692 10,427,328 ESTIMATE OF GENERAL IMPACT OF PROPOSED ZONE PROPERTY VALUES AND TAX REVENUES BUSINESS PERSONAL PROPERTY TAXREAL PROPERTY TAX 0.25% Preliminary Project and Financing Plan, TIRZ #2 9 Financial Feasibility Analysis Town Council Page 266 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 10 Financial Feasibility Analysis REVENUE #3 - BLOCK C + H REAL PROPERTY TAX 0 0 0 24,000,000 49,500,000 70,129,500 71,532,090 72,962,732 74,421,986 75,910,426 77,428,635 78,977,207 80,556,752 82,167,887 83,811,244 85,487,469 87,197,219 88,941,163 90,719,986 92,534,386 94,385,074 96,272,775 98,198,231 100,162,195 102,165,439 104,208,748 106,292,923 108,418,781 110,587,157 112,798,900 115,054,878 117,355,976 BUSINESS PERSONAL PROPERTY 0 0 0 800,000 1,406,475 1,875,300 1,912,806 1,951,062 1,990,083 2,029,885 2,070,483 2,111,892 2,154,130 2,197,213 2,241,157 2,285,980 2,331,700 2,378,334 2,425,901 2,474,419 2,523,907 2,574,385 2,625,873 2,678,390 2,731,958 2,786,597 2,842,329 2,899,176 2,957,159 3,016,302 3,076,628 3,138,161 Trophy Club 0 0 0 71,899 148,292 210,094 214,296 218,582 222,953 227,412 231,961 236,600 241,332 246,159 251,082 256,103 261,225 266,450 271,779 277,215 282,759 288,414 294,182 300,066 306,067 312,189 318,432 324,801 331,297 337,923 344,681 351,575 7,645,820 Trophy Club Northwest ISD 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Northwest ISD Denton County 0 0 0 41,028 84,619 119,885 122,283 124,729 127,223 129,768 132,363 135,010 137,710 140,465 143,274 146,139 149,062 152,043 155,084 158,186 161,350 164,577 167,868 171,226 174,650 178,143 181,706 185,340 189,047 192,828 196,684 200,618 4,362,910 Denton County Trophy CLUB MUD 1 0 0 0 19,208 39,617 56,127 57,250 58,395 59,563 60,754 61,969 63,209 64,473 65,762 67,077 68,419 69,787 71,183 72,607 74,059 75,540 77,051 78,592 80,164 81,767 83,402 85,070 86,772 88,507 90,277 92,083 93,925 2,042,612 Trophy CLUB MUD 1 npv @ 6% SUBTOTAL #3 4,968,267 0 0 0 132,135 272,528 386,107 393,829 401,705 409,739 417,934 426,293 434,819 443,515 452,385 461,433 470,662 480,075 489,677 499,470 509,460 519,649 530,042 540,643 551,455 562,484 573,734 585,209 596,913 608,851 621,028 633,449 646,118 14,051,342 REVENUE #4 - BLOCK D REAL PROPERTY TAX 0 0 0 0 2,558,100 3,837,150 5,116,200 5,218,524 5,322,894 5,429,352 5,537,939 5,648,698 5,761,672 5,876,906 5,994,444 6,114,333 6,236,619 6,361,352 6,488,579 6,618,350 6,750,717 6,885,732 7,023,446 7,163,915 7,307,193 7,453,337 7,602,404 7,754,452 7,909,541 8,067,732 8,229,087 8,393,668 BUSINESS PERSONAL PROPERTY 0 0 0 0 170,540 255,810 341,080 347,902 354,860 361,957 369,196 376,580 384,111 391,794 399,630 407,622 415,775 424,090 432,572 441,223 450,048 459,049 468,230 477,594 487,146 496,889 506,827 516,963 527,303 537,849 548,606 559,578 Trophy Club 0 0 0 0 7,664 11,495 15,327 15,634 15,946 16,265 16,591 16,922 17,261 17,606 17,958 18,317 18,684 19,057 19,438 19,827 20,224 20,628 21,041 21,462 21,891 22,329 22,775 23,231 23,695 24,169 24,653 25,146 535,237 Trophy Club Northwest ISD 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Northwest ISD Denton County 0 0 0 0 4,373 6,560 8,746 8,921 9,099 9,281 9,467 9,656 9,849 10,046 10,247 10,452 10,661 10,875 11,092 11,314 11,540 11,771 12,006 12,247 12,492 12,741 12,996 13,256 13,521 13,792 14,067 14,349 305,420 Denton County Trophy CLUB MUD 1 0 0 0 0 2,047 3,071 4,095 4,177 4,260 4,345 4,432 4,521 4,611 4,704 4,798 4,894 4,991 5,091 5,193 5,297 5,403 5,511 5,621 5,734 5,848 5,965 6,085 6,206 6,330 6,457 6,586 6,718 142,991 Trophy CLUB MUD 1 SUBTOTAL #4 339,244 0 0 0 0 14,084 21,126 28,168 28,731 29,306 29,892 30,490 31,100 31,722 32,356 33,003 33,663 34,336 35,023 35,724 36,438 37,167 37,910 38,668 39,442 40,231 41,035 41,856 42,693 43,547 44,418 45,306 46,212 983,648 REVENUE #5 - BLOCK E REAL PROPERTY TAX 0 0 0 0 4,755,000 7,132,500 9,510,000 9,700,200 9,894,204 10,092,088 10,293,930 10,499,808 10,709,805 10,924,001 11,142,481 11,365,330 11,592,637 11,824,490 12,060,979 12,302,199 12,548,243 12,799,208 13,055,192 13,316,296 13,582,622 13,854,274 14,131,360 14,413,987 14,702,267 14,996,312 15,296,238 15,602,163 BUSINESS PERSONAL PROPERTY 0 0 0 0 297,000 445,500 594,000 605,880 617,998 630,358 642,965 655,824 668,940 682,319 695,966 709,885 724,083 738,564 753,336 768,402 783,770 799,446 815,435 831,743 848,378 865,346 882,653 900,306 918,312 936,678 955,412 974,520 Trophy Club 0 0 0 0 14,245 21,368 28,490 29,060 29,641 30,234 30,839 31,455 32,084 32,726 33,381 34,048 34,729 35,424 36,132 36,855 37,592 38,344 39,111 39,893 40,691 41,505 42,335 43,181 44,045 44,926 45,824 46,741 994,899 Trophy Club Northwest ISD 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Northwest ISD Denton County 0 0 0 0 8,129 12,193 16,257 16,582 16,914 17,252 17,597 17,949 18,308 18,674 19,048 19,429 19,817 20,214 20,618 21,030 21,451 21,880 22,318 22,764 23,219 23,684 24,157 24,640 25,133 25,636 26,149 26,672 567,716 Denton County Trophy CLUB MUD 1 0 0 0 0 3,806 5,708 7,611 7,763 7,919 8,077 8,239 8,403 8,571 8,743 8,918 9,096 9,278 9,464 9,653 9,846 10,043 10,244 10,449 10,658 10,871 11,088 11,310 11,536 11,767 12,002 12,242 12,487 265,791 Trophy CLUB MUD 1 SUBTOTAL #5 630,587 0 0 0 0 26,179 39,269 52,358 53,406 54,474 55,563 56,675 57,808 58,964 60,143 61,346 62,573 63,825 65,101 66,403 67,731 69,086 70,468 71,877 73,315 74,781 76,276 77,802 79,358 80,945 82,564 84,215 85,900 1,828,406 REVENUE #6 - SALES SALES TAX 0 0 17,469,300 29,076,450 38,783,562 41,375,601 43,898,009 44,775,969 45,671,489 46,584,919 47,516,617 48,466,949 49,436,288 50,425,014 51,433,514 52,462,185 53,511,428 54,581,657 55,673,290 56,786,756 57,922,491 59,080,941 60,262,559 61,467,811 62,697,167 63,951,110 65,230,132 66,534,735 67,865,430 69,222,738 70,607,193 72,019,337 1,604,790,641 Trophy Club SUBTOTAL #6 1,462,323 0 0 43,673 72,691 96,959 103,439 109,745 111,940 114,179 116,462 118,792 121,167 123,591 126,063 128,584 131,155 133,779 136,454 139,183 141,967 144,806 147,702 150,656 153,670 156,743 159,878 163,075 166,337 169,664 173,057 176,518 180,048 4,011,977 TIF REVENUE A, 1, 2, 3, 4, 5, 6 615 1,243 213,309 474,806 749,723 897,328 939,051 958,448 978,232 998,412 1,018,996 1,039,991 1,061,406 1,083,250 1,105,530 1,128,256 1,151,437 1,175,081 1,199,198 1,223,797 1,248,889 1,274,482 1,300,587 1,327,214 1,354,374 1,382,077 1,410,334 1,439,156 1,468,555 1,498,541 1,529,127 1,560,325 34,191,773 Total Taxable Value 5,700,864 5,814,881 36,400,479 78,626,252 124,152,298 149,785,132 156,217,992 159,342,352 162,529,199 165,779,783 169,095,378 172,477,286 175,926,832 179,445,368 183,034,276 186,694,961 190,428,860 194,237,437 198,122,186 202,084,630 206,126,323 210,248,849 214,453,826 218,742,902 223,117,761 227,580,116 232,131,718 236,774,352 241,509,839 246,340,036 251,266,837 256,292,174 TIF Revenue Running Total 615 1,859 215,168 689,974 1,439,698 2,337,026 3,276,077 4,234,525 5,212,757 6,211,169 7,230,164 8,270,155 9,331,562 10,414,812 11,520,342 12,648,598 13,800,035 14,975,116 16,174,314 17,398,112 18,647,001 19,921,483 21,222,070 22,549,284 23,903,658 25,285,735 26,696,069 28,135,225 29,603,780 31,102,321 32,631,448 34,191,773 NET PRESENT VALUE @ 6%12,272,706 GROSS 34,191,773 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 Trophy Club 7,344,626 335 676 135,978 291,496 452,151 535,422 560,999 572,554 584,340 596,362 608,624 621,131 633,889 646,901 660,174 673,712 687,522 701,607 715,974 730,628 745,576 760,822 776,373 792,236 808,415 824,919 841,752 858,922 876,435 894,299 912,519 931,105 20,433,845 Northwest ISD - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Denton County 3,356,600 191 386 52,672 124,856 202,682 246,501 257,498 262,839 268,287 273,843 279,511 285,293 291,190 297,205 303,340 309,598 315,981 322,491 329,132 335,906 342,815 349,863 357,051 364,383 371,862 379,490 387,271 395,208 403,303 411,560 419,982 428,573 9,370,760 Trophy CLUB MUD 1 1,571,481 89 181 24,660 58,455 94,891 115,406 120,554 123,055 125,605 128,207 130,861 133,567 136,328 139,144 142,016 144,946 147,935 150,983 154,092 157,263 160,498 163,797 167,163 170,596 174,097 177,668 181,311 185,027 188,817 192,683 196,626 200,648 4,387,168 TOTALS 615 1,243 213,309 474,806 749,723 897,328 939,051 958,448 978,232 998,412 1,018,996 1,039,991 1,061,406 1,083,250 1,105,530 1,128,256 1,151,437 1,175,081 1,199,198 1,223,797 1,248,889 1,274,482 1,300,587 1,327,214 1,354,374 1,382,077 1,410,334 1,439,156 1,468,555 1,498,541 1,529,127 1,560,325 34,191,773 Town Council Page 267 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 11 Financial Feasibility Analysis $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 Total Annual Tax Revenue Generated Trophy CLUB MUD 1 Denton County Northwest ISD Trophy Club $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 Potential TIF Tax Revenue Trophy CLUB MUD 1 Denton County Trophy Club 85,269,462 82,466,146 16,176,082 7,573,259 30 Year Gross Economic Impact Trophy Club Northwest ISD Denton County Trophy CLUB MUD 1 20,433,845 9,370,760 4,387,168 30 Year Potential TIF Revenue Trophy Club Denton County Trophy CLUB MUD 1 64,835,617 82,466,146 6,805,323 3,186,091 30 Year Net Benefit Trophy Club Northwest ISD Denton County Trophy CLUB MUD 1 Town Council Page 268 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 12 Financial Feasibility Analysis ►INPUT INFLATION RATE 2.00% DISCOUNT RATE 6.00% REAL PROPERTY TAX Trophy Club 0.49930000 60%0.2995800 Northwest ISD 1.45250000 0%0.0000000 Denton County 0.28491400 60%0.1709484 Trophy CLUB MUD 1 0.13339000 60%0.0800340 2.37010400 0.5505624 PERSONAL PROPERTY TAX Trophy Club 0.49930000 0%0.0000000 Northwest ISD 1.45250000 0%0.0000000 Denton County 0.28491400 0%0.0000000 Trophy CLUB MUD 1 0.13339000 0%0.0000000 2.37010400 0.0000000 Sales Tax Rate 0.0200000 12.50%0.0025000 Block A AREA Year SF/UNITS $ / SF TAX VALUE $ / SF TAX VALUE $ / SF TAX VALUE Retail 2017 38,300 300.00$ 11,490,000$ 20.00$ 766,000$ 300.00$ 11,490,000$ Office TOTAL 38,300 11,490,000 766,000 11,490,000 ►OUTPUT TOTAL TAX REVENUE TOTAL Trophy Club 55.9%11,433,813$ =2,254,179$ +150,279$ +9,029,355$ Northwest ISD 34.2%6,994,741$ =6,557,569$ +437,171$ +-$ Denton County 6.7%1,372,048$ =1,286,295$ +85,753$ +-$ Trophy CLUB MUD 1 3.1%642,360$ =602,213$ +40,148$ +-$ 100.0%20,442,962 10,700,256$ 713,350$ 9,029,355$ 100.0%52.3%3.5%44.2% TOTAL PARTICIPATION TOTAL Trophy Club 68.6%2,481,177$ =1,352,507$ +-$ +1,128,669$ Northwest ISD 0.0%-$ =-$ +-$ +-$ Denton County 21.4%771,777$ =771,777$ +-$ +-$ Trophy CLUB MUD 1 10.0%361,328$ =361,328$ +-$ +-$ 100.0%3,614,281$ 2,485,612$ -$ 1,128,669$ 100.0%68.8%0.0%31.2% NET BENEFIT TOTAL Trophy Club 53.2%8,952,636$ =901,671$ +150,279$ +7,900,686$ Northwest ISD 41.6%6,994,741$ =6,557,569$ +437,171$ +-$ Denton County 3.6%600,271$ =514,518$ +85,753$ +-$ Trophy CLUB MUD 1 1.7%281,033$ =240,885$ +40,148$ +-$ 100.0%16,828,680$ 8,214,644$ 713,350$ 7,900,686$ 100.0%48.8%4.2%46.9% REAL PROPERTY PERSONAL PROPERTY SALES 30 YEAR - BLOCK A : INPUT & OUTPUT PARTICIPATION PARTICIPATION SALES REAL PROPERTY PERSONAL PROPERTY SALES SALES REAL PROPERTY PERSONAL PROPERTY REAL PROPERTY PERSONAL PROPERTY Town Council Page 269 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 13 Financial Feasibility Analysis Calendar Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 TOTAL TAX REVENUE 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 % OCCUPIED 0%0%50% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% REAL PROPERTY Taxable Value - - 5,745,000 11,490,000 11,719,800 11,954,196 12,193,280 12,437,146 12,685,888 12,939,606 13,198,398 13,462,366 13,731,614 14,006,246 14,286,371 14,572,098 14,863,540 15,160,811 15,464,027 15,773,308 16,088,774 16,410,549 16,738,760 17,073,536 17,415,006 17,763,306 18,118,573 18,480,944 18,850,563 19,227,574 19,612,126 20,004,368 PV GROSS Trophy Club 883,642 - - 28,685 57,370 58,517 59,687 60,881 62,099 63,341 64,607 65,900 67,218 68,562 69,933 71,332 72,758 74,214 75,698 77,212 78,756 80,331 81,938 83,577 85,248 86,953 88,692 90,466 92,275 94,121 96,003 97,923 99,882 2,254,179 Northwest ISD 2,570,580 - - 83,446 166,892 170,230 173,635 177,107 180,650 184,263 187,948 191,707 195,541 199,452 203,441 207,510 211,660 215,893 220,211 224,615 229,107 233,689 238,363 243,130 247,993 252,953 258,012 263,172 268,436 273,804 279,281 284,866 290,563 6,557,569 Denton County 504,230 - - 16,368 32,737 33,391 34,059 34,740 35,435 36,144 36,867 37,604 38,356 39,123 39,906 40,704 41,518 42,348 43,195 44,059 44,940 45,839 46,756 47,691 48,645 49,618 50,610 51,622 52,655 53,708 54,782 55,878 56,995 1,286,295 Trophy CLUB MUD 1 236,069 - - 7,663 15,327 15,633 15,946 16,265 16,590 16,922 17,260 17,605 17,957 18,317 18,683 19,057 19,438 19,826 20,223 20,627 21,040 21,461 21,890 22,328 22,774 23,230 23,694 24,168 24,652 25,145 25,648 26,161 26,684 602,213 Total 3,957,095 - - 136,162 272,325 277,771 283,327 288,993 294,773 300,669 306,682 312,816 319,072 325,454 331,963 338,602 345,374 352,281 359,327 366,514 373,844 381,321 388,947 396,726 404,661 412,754 421,009 429,429 438,018 446,778 455,714 464,828 474,124 10,700,256 % OCCUPIED 0%0%50% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% PERSONAL PROPERTY Taxable Value - 383,000 766,000 781,320 796,946 812,885 829,143 845,726 862,640 879,893 897,491 915,441 933,750 952,425 971,473 990,903 1,010,721 1,030,935 1,051,554 1,072,585 1,094,037 1,115,917 1,138,236 1,161,000 1,184,220 1,207,905 1,232,063 1,256,704 1,281,838 1,307,475 1,333,625 PV GROSS Trophy Club 58,909 - - 1,912 3,825 3,901 3,979 4,059 4,140 4,223 4,307 4,393 4,481 4,571 4,662 4,755 4,851 4,948 5,047 5,147 5,250 5,355 5,463 5,572 5,683 5,797 5,913 6,031 6,152 6,275 6,400 6,528 6,659 150,279 Northwest ISD 171,372 - - 5,563 11,126 11,349 11,576 11,807 12,043 12,284 12,530 12,780 13,036 13,297 13,563 13,834 14,111 14,393 14,681 14,974 15,274 15,579 15,891 16,209 16,533 16,864 17,201 17,545 17,896 18,254 18,619 18,991 19,371 437,171 Denton County 33,615 - - 1,091 2,182 2,226 2,271 2,316 2,362 2,410 2,458 2,507 2,557 2,608 2,660 2,714 2,768 2,823 2,880 2,937 2,996 3,056 3,117 3,179 3,243 3,308 3,374 3,441 3,510 3,581 3,652 3,725 3,800 85,753 Trophy CLUB MUD 1 15,738 - - 511 1,022 1,042 1,063 1,084 1,106 1,128 1,151 1,174 1,197 1,221 1,246 1,270 1,296 1,322 1,348 1,375 1,403 1,431 1,459 1,489 1,518 1,549 1,580 1,611 1,643 1,676 1,710 1,744 1,779 40,148 Total 263,806 - - 9,077 18,155 18,518 18,888 19,266 19,652 20,045 20,445 20,854 21,271 21,697 22,131 22,573 23,025 23,485 23,955 24,434 24,923 25,421 25,930 26,448 26,977 27,517 28,067 28,629 29,201 29,785 30,381 30,989 31,608 713,350 % OCCUPIED 0%0%50% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% SALES TAX Taxable Value - 5,745,000 11,490,000 11,719,800 11,954,196 12,193,280 12,437,146 12,685,888 12,939,606 13,198,398 13,462,366 13,731,614 14,006,246 14,286,371 14,572,098 14,863,540 15,160,811 15,464,027 15,773,308 16,088,774 16,410,549 16,738,760 17,073,536 17,415,006 17,763,306 18,118,573 18,480,944 18,850,563 19,227,574 19,612,126 20,004,368 PV GROSS Total 3,339,174 - - 114,900 229,800 234,396 239,084 243,866 248,743 253,718 258,792 263,968 269,247 274,632 280,125 285,727 291,442 297,271 303,216 309,281 315,466 321,775 328,211 334,775 341,471 348,300 355,266 362,371 369,619 377,011 384,551 392,243 400,087 9,029,355 SUMMARY PV GROSS Trophy Club 4,482,077 - - 145,497 290,994 296,814 302,750 308,805 314,981 321,281 327,707 334,261 340,946 347,765 354,720 361,815 369,051 376,432 383,961 391,640 399,473 407,462 415,611 423,924 432,402 441,050 449,871 458,869 468,046 477,407 486,955 496,694 506,628 11,433,813 Northwest ISD 2,741,952 - - 89,009 178,018 181,579 185,210 188,915 192,693 196,547 200,478 204,487 208,577 212,748 217,003 221,344 225,770 230,286 234,891 239,589 244,381 249,269 254,254 259,339 264,526 269,816 275,213 280,717 286,331 292,058 297,899 303,857 309,934 6,994,741 Denton County 537,845 - - 17,460 34,919 35,617 36,330 37,056 37,798 38,553 39,325 40,111 40,913 41,732 42,566 43,417 44,286 45,172 46,075 46,996 47,936 48,895 49,873 50,870 51,888 52,926 53,984 55,064 56,165 57,288 58,434 59,603 60,795 1,372,048 Trophy CLUB MUD 1 251,807 - - 8,174 16,348 16,675 17,009 17,349 17,696 18,050 18,411 18,779 19,155 19,538 19,928 20,327 20,734 21,148 21,571 22,003 22,443 22,892 23,349 23,816 24,293 24,779 25,274 25,780 26,295 26,821 27,358 27,905 28,463 642,360 Total 7,560,076 - - 260,140 520,280 530,686 541,299 552,125 563,168 574,431 585,920 597,638 609,591 621,783 634,218 646,903 659,841 673,038 686,498 700,228 714,233 728,518 743,088 757,950 773,109 788,571 804,342 820,429 836,838 853,574 870,646 888,059 905,820 20,442,962 T A X R E V E N U E P R O J E C T I O N S & C O S T - B E N E F I T A N A L Y S I S Town Council Page 270 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 14 PARTICIPATION REAL PROPERTY Taxable Value - - 5,745,000 11,490,000 11,719,800 11,954,196 12,193,280 12,437,146 12,685,888 12,939,606 13,198,398 13,462,366 13,731,614 14,006,246 14,286,371 14,572,098 14,863,540 15,160,811 15,464,027 15,773,308 16,088,774 16,410,549 16,738,760 17,073,536 17,415,006 17,763,306 18,118,573 18,480,944 18,850,563 19,227,574 19,612,126 20,004,368 PV GROSS Trophy Club 530,185 - - 17,211 34,422 35,110 35,812 36,529 37,259 38,004 38,764 39,540 40,331 41,137 41,960 42,799 43,655 44,528 45,419 46,327 47,254 48,199 49,163 50,146 51,149 52,172 53,215 54,280 55,365 56,473 57,602 58,754 59,929 1,352,507 Northwest ISD - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Denton County 302,538 - - 9,821 19,642 20,035 20,436 20,844 21,261 21,686 22,120 22,562 23,014 23,474 23,943 24,422 24,911 25,409 25,917 26,436 26,964 27,504 28,054 28,615 29,187 29,771 30,366 30,973 31,593 32,225 32,869 33,527 34,197 771,777 Trophy CLUB MUD 1 141,641 - - 4,598 9,196 9,380 9,567 9,759 9,954 10,153 10,356 10,563 10,774 10,990 11,210 11,434 11,663 11,896 12,134 12,376 12,624 12,876 13,134 13,397 13,665 13,938 14,217 14,501 14,791 15,087 15,389 15,696 16,010 361,328 Total 919,212 - - 31,630 63,260 64,525 65,815 67,132 68,474 69,844 71,241 72,665 74,119 75,601 77,113 78,655 80,228 81,833 83,470 85,139 86,842 88,579 90,350 92,157 94,000 95,880 97,798 99,754 101,749 103,784 105,860 107,977 110,137 2,485,612 PERSONAL PROPERTY Taxable Value - - 383,000 766,000 781,320 796,946 812,885 829,143 845,726 862,640 879,893 897,491 915,441 933,750 952,425 971,473 990,903 1,010,721 1,030,935 1,051,554 1,072,585 1,094,037 1,115,917 1,138,236 1,161,000 1,184,220 1,207,905 1,232,063 1,256,704 1,281,838 1,307,475 1,333,625 PV GROSS Trophy Club - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Northwest ISD - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Denton County - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Trophy CLUB MUD 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - SALES TAX Taxable Value - - 5,745,000 11,490,000 11,719,800 11,954,196 12,193,280 12,437,146 12,685,888 12,939,606 13,198,398 13,462,366 13,731,614 14,006,246 14,286,371 14,572,098 14,863,540 15,160,811 15,464,027 15,773,308 16,088,774 16,410,549 16,738,760 17,073,536 17,415,006 17,763,306 18,118,573 18,480,944 18,850,563 19,227,574 19,612,126 20,004,368 PV GROSS Total 417,397 - - 14,363 28,725 29,300 29,885 30,483 31,093 31,715 32,349 32,996 33,656 34,329 35,016 35,716 36,430 37,159 37,902 38,660 39,433 40,222 41,026 41,847 42,684 43,538 44,408 45,296 46,202 47,126 48,069 49,030 50,011 1,128,669 SUMMARY PV GROSS Trophy Club 972,626 - - 31,573 63,147 64,410 65,698 67,012 68,352 69,719 71,113 72,536 73,986 75,466 76,976 78,515 80,085 81,687 83,321 84,987 86,687 88,421 90,189 91,993 93,833 95,709 97,624 99,576 101,568 103,599 105,671 107,784 109,940 2,481,177 Northwest ISD - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Denton County 302,538 - - 9,821 19,642 20,035 20,436 20,844 21,261 21,686 22,120 22,562 23,014 23,474 23,943 24,422 24,911 25,409 25,917 26,436 26,964 27,504 28,054 28,615 29,187 29,771 30,366 30,973 31,593 32,225 32,869 33,527 34,197 771,777 Trophy CLUB MUD 1 141,641 - - 4,598 9,196 9,380 9,567 9,759 9,954 10,153 10,356 10,563 10,774 10,990 11,210 11,434 11,663 11,896 12,134 12,376 12,624 12,876 13,134 13,397 13,665 13,938 14,217 14,501 14,791 15,087 15,389 15,696 16,010 361,328 Total 1,336,609 - - 45,992 91,985 93,824 95,701 97,615 99,567 101,558 103,590 105,661 107,775 109,930 112,129 114,371 116,659 118,992 121,372 123,799 126,275 128,801 131,377 134,004 136,684 139,418 142,206 145,050 147,951 150,911 153,929 157,007 160,147 3,614,281 TOTAL TAX REVENUE - PARTICIPATION = NET BENEFIT SUMMARY PV GROSS Trophy Club 3,509,451 - - 113,924 227,847 232,404 237,053 241,794 246,629 251,562 256,593 261,725 266,960 272,299 277,745 283,300 288,966 294,745 300,640 306,653 312,786 319,041 325,422 331,931 338,569 345,341 352,248 359,293 366,478 373,808 381,284 388,910 396,688 8,952,636 Northwest ISD 2,741,952 - - 89,009 178,018 181,579 185,210 188,915 192,693 196,547 200,478 204,487 208,577 212,748 217,003 221,344 225,770 230,286 234,891 239,589 244,381 249,269 254,254 259,339 264,526 269,816 275,213 280,717 286,331 292,058 297,899 303,857 309,934 6,994,741 Denton County 235,307 - - 7,639 15,277 15,583 15,894 16,212 16,536 16,867 17,204 17,549 17,900 18,258 18,623 18,995 19,375 19,763 20,158 20,561 20,972 21,392 21,819 22,256 22,701 23,155 23,618 24,090 24,572 25,064 25,565 26,076 26,598 600,271 Trophy CLUB MUD 1 110,165 - - 3,576 7,152 7,295 7,441 7,590 7,742 7,897 8,055 8,216 8,380 8,548 8,719 8,893 9,071 9,252 9,437 9,626 9,819 10,015 10,215 10,420 10,628 10,841 11,057 11,279 11,504 11,734 11,969 12,208 12,452 281,033 Total 6,223,467 - - 214,148 428,295 436,861 445,598 454,510 463,601 472,873 482,330 491,977 501,816 511,853 522,090 532,531 543,182 554,046 565,127 576,429 587,958 599,717 611,711 623,945 636,424 649,153 662,136 675,379 688,886 702,664 716,717 731,052 745,673 16,828,680 Town Council Page 271 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 15 Financial Feasibility Analysis ►INPUT INFLATION RATE 2.00% DISCOUNT RATE 6.00% REAL PROPERTY TAX Trophy Club 0.49930000 60%0.2995800 Northwest ISD 1.45250000 0%0.0000000 Denton County 0.28491400 60%0.1709484 Trophy CLUB MUD 1 0.13339000 60%0.0800340 2.37010400 0.5505624 PERSONAL PROPERTY TAX Trophy Club 0.49930000 0%0.0000000 Northwest ISD 1.45250000 0%0.0000000 Denton County 0.28491400 0%0.0000000 Trophy CLUB MUD 1 0.13339000 0%0.0000000 2.37010400 0.0000000 Sales Tax Rate 0.0200000 12.50%0.0025000 Block B + I AREA Year SF/UNITS $ / SF TAX VALUE $ / SF TAX VALUE $ / SF TAX VALUE Retail 2017 78,162 300.00$ 23,448,600$ 20.00$ 1,563,240$ 300.00$ 23,448,600$ Multifamily 2017 250 80,000$ 20,000,000$ 500$ 125,000$ -$ -$ Brownstones 2017 30 200,000$ 6,000,000$ -$ -$ -$ -$ TOTAL 78,442 49,448,600 1,688,240 23,448,600 OUTPUT ► TOTAL TAX REVENUE TOTAL Trophy Club 43.1%27,741,499$ =9,456,449$ +322,856$ +17,962,195$ Northwest ISD 44.2%28,448,707$ =27,509,496$ +939,210$ +-$ Denton County 8.7%5,580,334$ =5,396,104$ +184,230$ +-$ Trophy CLUB MUD 1 4.1%2,612,580$ =2,526,328$ +86,252$ +-$ 100.0%64,383,120 44,888,377$ 1,532,548$ 17,962,195$ 100.0%69.7%2.4%27.9% TOTAL PARTICIPATION TOTAL Trophy Club 62.5%7,919,144$ =5,673,869$ +-$ +2,245,274$ Northwest ISD 0.0%-$ =-$ +-$ +-$ Denton County 25.5%3,237,662$ =3,237,662$ +-$ +-$ Trophy CLUB MUD 1 12.0%1,515,797$ =1,515,797$ +-$ +-$ 100.0%12,672,603$ 10,427,328$ -$ 2,245,274$ 100.0%82.3%0.0%17.7% NET BENEFIT TOTAL Trophy Club 38.3%19,822,356$ =3,782,579$ +322,856$ +15,716,921$ Northwest ISD 55.0%28,448,707$ =27,509,496$ +939,210$ +-$ Denton County 4.5%2,342,672$ =2,158,441$ +184,230$ +-$ Trophy CLUB MUD 1 2.1%1,096,783$ =1,010,531$ +86,252$ +-$ 100.0%51,710,517$ 34,461,049$ 1,532,548$ 15,716,921$ 100.0%66.6%3.0%30.4% REAL PROPERTY PERSONAL PROPERTY SALES REAL PROPERTY 30 YEAR - BLOCK B + I : INPUT & OUTPUT PARTICIPATION PARTICIPATION REAL PROPERTY PERSONAL PROPERTY SALES REAL PROPERTY PERSONAL PROPERTY SALES PERSONAL PROPERTY SALES Town Council Page 272 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 16 Calendar Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 TOTAL TAX REVENUE 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 % OCCUPIED 0%0%50%75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% REAL PROPERTY Taxable Value - 24,724,300 37,086,450 49,448,600 50,437,572 51,446,323 52,475,250 53,524,755 54,595,250 55,687,155 56,800,898 57,936,916 59,095,654 60,277,567 61,483,119 62,712,781 63,967,037 65,246,378 66,551,305 67,882,331 69,239,978 70,624,777 72,037,273 73,478,018 74,947,579 76,446,530 77,975,461 79,534,970 81,125,670 82,748,183 84,403,147 PV GROSS Trophy Club 3,682,690 - - 123,448 185,173 246,897 251,835 256,871 262,009 267,249 272,594 278,046 283,607 289,279 295,065 300,966 306,985 313,125 319,387 325,775 332,291 338,936 345,715 352,630 359,682 366,876 374,213 381,698 389,331 397,118 405,060 413,162 421,425 9,456,449 Northwest ISD 10,713,212 - - 359,120 538,681 718,241 732,606 747,258 762,203 777,447 792,996 808,856 825,033 841,534 858,364 875,532 893,042 910,903 929,121 947,704 966,658 985,991 1,005,711 1,025,825 1,046,341 1,067,268 1,088,614 1,110,386 1,132,594 1,155,245 1,178,350 1,201,917 1,225,956 27,509,496 Denton County 2,101,442 - - 70,443 105,664 140,886 143,704 146,578 149,509 152,500 155,550 158,661 161,834 165,070 168,372 171,739 175,174 178,677 182,251 185,896 189,614 193,406 197,274 201,220 205,244 209,349 213,536 217,807 222,163 226,606 231,138 235,761 240,476 5,396,104 Trophy CLUB MUD 1 983,845 - - 32,980 49,470 65,959 67,279 68,624 69,997 71,397 72,825 74,281 75,767 77,282 78,828 80,404 82,012 83,653 85,326 87,032 88,773 90,548 92,359 94,206 96,091 98,012 99,973 101,972 104,011 106,092 108,214 110,378 112,585 2,526,328 Total 16,491,688 - - 585,992 878,987 1,171,983 1,195,423 1,219,331 1,243,718 1,268,592 1,293,964 1,319,843 1,346,240 1,373,165 1,400,628 1,428,641 1,457,214 1,486,358 1,516,085 1,546,407 1,577,335 1,608,882 1,641,059 1,673,881 1,707,358 1,741,505 1,776,336 1,811,862 1,848,100 1,885,062 1,922,763 1,961,218 2,000,442 44,888,377 % OCCUPIED 0%0%50%75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% PERSONAL PROPERTY Taxable Value - - 844,120 1,266,180 1,688,240 1,722,005 1,756,445 1,791,574 1,827,405 1,863,953 1,901,232 1,939,257 1,978,042 2,017,603 2,057,955 2,099,114 2,141,097 2,183,918 2,227,597 2,272,149 2,317,592 2,363,944 2,411,222 2,459,447 2,508,636 2,558,809 2,609,985 2,662,184 2,715,428 2,769,737 2,825,131 2,881,634 PV GROSS Trophy Club 125,732 - - 4,215 6,322 8,429 8,598 8,770 8,945 9,124 9,307 9,493 9,683 9,876 10,074 10,275 10,481 10,690 10,904 11,122 11,345 11,572 11,803 12,039 12,280 12,526 12,776 13,032 13,292 13,558 13,829 14,106 14,388 322,856 Northwest ISD 365,763 - - 12,261 18,391 24,522 25,012 25,512 26,023 26,543 27,074 27,615 28,168 28,731 29,306 29,892 30,490 31,099 31,721 32,356 33,003 33,663 34,336 35,023 35,723 36,438 37,167 37,910 38,668 39,442 40,230 41,035 41,856 939,210 Denton County 71,746 - - 2,405 3,608 4,810 4,906 5,004 5,104 5,207 5,311 5,417 5,525 5,636 5,748 5,863 5,981 6,100 6,222 6,347 6,474 6,603 6,735 6,870 7,007 7,147 7,290 7,436 7,585 7,737 7,891 8,049 8,210 184,230 Trophy CLUB MUD 1 33,590 - - 1,126 1,689 2,252 2,297 2,343 2,390 2,438 2,486 2,536 2,587 2,639 2,691 2,745 2,800 2,856 2,913 2,971 3,031 3,091 3,153 3,216 3,281 3,346 3,413 3,481 3,551 3,622 3,695 3,768 3,844 86,252 Total 563,048 - - 20,007 30,010 40,013 40,813 41,630 42,462 43,311 44,178 45,061 45,962 46,882 47,819 48,776 49,751 50,746 51,761 52,796 53,852 54,929 56,028 57,148 58,291 59,457 60,646 61,859 63,097 64,358 65,646 66,959 68,298 1,532,548 % OCCUPIED 0%0%50%75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% SALES TAX Taxable Value - - 11,724,300 17,586,450 23,448,600 23,917,572 24,395,923 24,883,842 25,381,519 25,889,149 26,406,932 26,935,071 27,473,772 28,023,248 28,583,713 29,155,387 29,738,495 30,333,264 30,939,930 31,558,728 32,189,903 32,833,701 33,490,375 34,160,182 34,843,386 35,540,254 36,251,059 36,976,080 37,715,602 38,469,914 39,239,312 40,024,098 PV GROSS Total 6,995,141 - - 234,486 351,729 468,972 478,351 487,918 497,677 507,630 517,783 528,139 538,701 549,475 560,465 571,674 583,108 594,770 606,665 618,799 631,175 643,798 656,674 669,807 683,204 696,868 710,805 725,021 739,522 754,312 769,398 784,786 800,482 17,962,195 SUMMARY PV GROSS Trophy Club 10,803,563 - - 362,149 543,224 724,298 738,784 753,560 768,631 784,004 799,684 815,677 831,991 848,631 865,603 882,916 900,574 918,585 936,957 955,696 974,810 994,306 1,014,192 1,034,476 1,055,166 1,076,269 1,097,794 1,119,750 1,142,145 1,164,988 1,188,288 1,212,054 1,236,295 27,741,499 Northwest ISD 11,078,975 - - 371,381 557,072 742,763 757,618 772,770 788,226 803,990 820,070 836,471 853,201 870,265 887,670 905,423 923,532 942,003 960,843 980,059 999,661 1,019,654 1,040,047 1,060,848 1,082,065 1,103,706 1,125,780 1,148,296 1,171,262 1,194,687 1,218,581 1,242,952 1,267,811 28,448,707 Denton County 2,173,188 - - 72,848 109,272 145,696 148,610 151,582 154,614 157,706 160,860 164,077 167,359 170,706 174,120 177,603 181,155 184,778 188,473 192,243 196,088 200,009 204,010 208,090 212,252 216,497 220,827 225,243 229,748 234,343 239,030 243,810 248,687 5,580,334 Trophy CLUB MUD 1 1,017,435 - - 34,106 51,159 68,211 69,576 70,967 72,387 73,834 75,311 76,817 78,353 79,921 81,519 83,149 84,812 86,509 88,239 90,004 91,804 93,640 95,512 97,423 99,371 101,359 103,386 105,453 107,563 109,714 111,908 114,146 116,429 2,612,580 Total 23,653,925 - - 840,484 1,260,726 1,680,968 1,714,588 1,748,879 1,783,857 1,819,534 1,855,925 1,893,043 1,930,904 1,969,522 2,008,913 2,049,091 2,090,073 2,131,874 2,174,512 2,218,002 2,262,362 2,307,609 2,353,761 2,400,837 2,448,853 2,497,830 2,547,787 2,598,743 2,650,718 2,703,732 2,757,807 2,812,963 2,869,222 64,383,120 T A X R E V E N U E P R O J E C T I O N S & C O S T - B E N E F I T A N A L Y S I S Town Council Page 273 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 17 Financial Feasibility Analysis PARTICIPATION REAL PROPERTY Taxable Value - - 24,724,300 37,086,450 49,448,600 50,437,572 51,446,323 52,475,250 53,524,755 54,595,250 55,687,155 56,800,898 57,936,916 59,095,654 60,277,567 61,483,119 62,712,781 63,967,037 65,246,378 66,551,305 67,882,331 69,239,978 70,624,777 72,037,273 73,478,018 74,947,579 76,446,530 77,975,461 79,534,970 81,125,670 82,748,183 84,403,147 PV GROSS Trophy Club 2,209,614 - - 74,069 111,104 148,138 151,101 154,123 157,205 160,349 163,556 166,828 170,164 173,567 177,039 180,580 184,191 187,875 191,632 195,465 199,374 203,362 207,429 211,578 215,809 220,125 224,528 229,019 233,599 238,271 243,036 247,897 252,855 5,673,869 Northwest ISD - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Denton County 1,260,865 - - 42,266 63,399 84,532 86,222 87,947 89,706 91,500 93,330 95,196 97,100 99,042 101,023 103,044 105,104 107,206 109,351 111,538 113,768 116,044 118,365 120,732 123,147 125,609 128,122 130,684 133,298 135,964 138,683 141,457 144,286 3,237,662 Trophy CLUB MUD 1 590,307 - - 19,788 29,682 39,576 40,367 41,175 41,998 42,838 43,695 44,569 45,460 46,369 47,297 48,243 49,207 50,192 51,195 52,219 53,264 54,329 55,416 56,524 57,654 58,807 59,984 61,183 62,407 63,655 64,928 66,227 67,551 1,515,797 Total 3,830,930 - - 136,123 204,184 272,245 277,690 283,244 288,909 294,687 300,581 306,593 312,724 318,979 325,358 331,866 338,503 345,273 352,178 359,222 366,406 373,735 381,209 388,833 396,610 404,542 412,633 420,886 429,304 437,890 446,647 455,580 464,692 10,427,328 PERSONAL PROPERTY Taxable Value - - 844,120 1,266,180 1,688,240 1,722,005 1,756,445 1,791,574 1,827,405 1,863,953 1,901,232 1,939,257 1,978,042 2,017,603 2,057,955 2,099,114 2,141,097 2,183,918 2,227,597 2,272,149 2,317,592 2,363,944 2,411,222 2,459,447 2,508,636 2,558,809 2,609,985 2,662,184 2,715,428 2,769,737 2,825,131 2,881,634 PV GROSS Trophy Club - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Northwest ISD - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Denton County - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Trophy CLUB MUD 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - SALES TAX Taxable Value - - 11,724,300 17,586,450 23,448,600 23,917,572 24,395,923 24,883,842 25,381,519 25,889,149 26,406,932 26,935,071 27,473,772 28,023,248 28,583,713 29,155,387 29,738,495 30,333,264 30,939,930 31,558,728 32,189,903 32,833,701 33,490,375 34,160,182 34,843,386 35,540,254 36,251,059 36,976,080 37,715,602 38,469,914 39,239,312 40,024,098 PV GROSS Total 874,393 - - 29,310.75 43,966.13 58,621.50 59,793.93 60,989.81 62,209.60 63,453.80 64,722.87 66,017.33 67,337.68 68,684.43 70,058.12 71,459.28 72,888.47 74,346.24 75,833.16 77,349.82 78,896.82 80,474.76 82,084.25 83,725.94 85,400.46 87,108.47 88,850.63 90,627.65 92,440.20 94,289.00 96,174.78 98,098.28 100,060.25 2,245,274 SUMMARY PV GROSS Trophy Club 3,084,006 - - 103,380 155,070 206,760 210,895 215,113 219,415 223,803 228,279 232,845 237,502 242,252 247,097 252,039 257,080 262,221 267,466 272,815 278,271 283,837 289,513 295,304 301,210 307,234 313,379 319,646 326,039 332,560 339,211 345,995 352,915 7,919,144 Northwest ISD - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Denton County 1,260,865 - - 42,266 63,399 84,532 86,222 87,947 89,706 91,500 93,330 95,196 97,100 99,042 101,023 103,044 105,104 107,206 109,351 111,538 113,768 116,044 118,365 120,732 123,147 125,609 128,122 130,684 133,298 135,964 138,683 141,457 144,286 3,237,662 Trophy CLUB MUD 1 590,307 - - 19,788 29,682 39,576 40,367 41,175 41,998 42,838 43,695 44,569 45,460 46,369 47,297 48,243 49,207 50,192 51,195 52,219 53,264 54,329 55,416 56,524 57,654 58,807 59,984 61,183 62,407 63,655 64,928 66,227 67,551 1,515,797 Total 4,655,829 - - 165,433 248,150 330,867 337,484 344,234 351,119 358,141 365,304 372,610 380,062 387,663 395,417 403,325 411,391 419,619 428,012 436,572 445,303 454,209 463,294 472,559 482,011 491,651 501,484 511,513 521,744 532,179 542,822 553,679 564,752 12,672,603 TOTAL TAX REVENUE - PARTICIPATION = NET BENEFIT SUMMARY PV GROSS Trophy Club 7,719,556 - - 258,769 388,154 517,539 527,889 538,447 549,216 560,200 571,404 582,833 594,489 606,379 618,507 630,877 643,494 656,364 669,491 682,881 696,539 710,470 724,679 739,173 753,956 769,035 784,416 800,104 816,106 832,428 849,077 866,059 883,380 19,822,356 Northwest ISD 11,078,975 - - 371,381 557,072 742,763 757,618 772,770 788,226 803,990 820,070 836,471 853,201 870,265 887,670 905,423 923,532 942,003 960,843 980,059 999,661 1,019,654 1,040,047 1,060,848 1,082,065 1,103,706 1,125,780 1,148,296 1,171,262 1,194,687 1,218,581 1,242,952 1,267,811 28,448,707 Denton County 912,323 - - 30,582 45,873 61,164 62,388 63,635 64,908 66,206 67,530 68,881 70,259 71,664 73,097 74,559 76,050 77,571 79,123 80,705 82,319 83,966 85,645 87,358 89,105 90,887 92,705 94,559 96,450 98,379 100,347 102,354 104,401 2,342,672 Trophy CLUB MUD 1 427,128 - - 14,318 21,477 28,636 29,208 29,793 30,388 30,996 31,616 32,248 32,893 33,551 34,222 34,907 35,605 36,317 37,043 37,784 38,540 39,311 40,097 40,899 41,717 42,551 43,402 44,270 45,156 46,059 46,980 47,920 48,878 1,096,783 Total 18,998,096 - - 675,051 1,012,576 1,350,101 1,377,103 1,404,645 1,432,738 1,461,393 1,490,621 1,520,433 1,550,842 1,581,859 1,613,496 1,645,766 1,678,681 1,712,255 1,746,500 1,781,430 1,817,059 1,853,400 1,890,468 1,928,277 1,966,843 2,006,180 2,046,303 2,087,229 2,128,974 2,171,553 2,214,984 2,259,284 2,304,470 51,710,517 Town Council Page 274 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 18 Financial Feasibility Analysis ►INPUT INFLATION RATE 2.00% DISCOUNT RATE 6.00% REAL PROPERTY TAX Trophy Club 0.49930000 60%0.2995800 Northwest ISD 1.45250000 0%0.0000000 Denton County 0.28491400 60%0.1709484 Trophy CLUB MUD 1 0.13339000 60%0.0800340 2.37010400 0.5505624 PERSONAL PROPERTY TAX Trophy Club 0.49930000 0%0.0000000 Northwest ISD 1.45250000 0%0.0000000 Denton County 0.28491400 0%0.0000000 Trophy CLUB MUD 1 0.13339000 0%0.0000000 2.37010400 0.0000000 SALES TAX RATE 0.0200000 12.50%0.0025000 Block C + H AREA Year SF/UNIT $/SF or $/Unit TAX VALUE $ / SF TAX VALUE $ / SF TAX VALUE Retail 2020 13,765 300.00$ 4,129,500$ 20.00$ 275,300$ 300.00$ 4,129,500$ Office 2018 160,000 300$ 48,000,000$ 10$ 1,600,000$ -$ -$ Hotel 2019 200 90,000$ 18,000,000$ -$ -$ 3,000.00$ 600,000$ TOTAL 70,129,500.00 1,875,300.00 4,729,500.00 ►OUTPUT TOTAL TAX REVENUE TOTAL REAL PROPERTY PERSONAL PROPERTY SALES Trophy Club 25.1%16,437,212$ =12,743,034$ +341,959$ +3,352,220$ Northwest ISD 58.1%38,065,195$ =37,070,411$ +994,784$ +-$ Denton County 11.4%7,466,648$ =7,271,517$ +195,131$ +-$ Trophy CLUB MUD 1 5.3%3,495,708 =3,404,353$ +91,356$ +-$ 1 6546476350.0%6048931453.6%162322937.3%335221959.1% 100.0%92.4%2.5%5.1% TOTAL PARTICIPATION TOTAL REAL PROPERTY PERSONAL PROPERTY SALES Trophy Club 55.7%8,064,848$ =7,645,820$ +-$ +419,027$ Northwest ISD 0.0%-$ =-$ +-$ +-$ Denton County 30.2%4,362,910$ =4,362,910$ +-$ +-$ Trophy CLUB MUD 1 14.1%2,042,612$ =2,042,612$ +-$ +-$ 1 1447036957.8%1405134212.9%0.0%41902744.9% 100.0%97.1%0.0%2.9% NET BENEFIT TOTAL REAL PROPERTY PERSONAL PROPERTY SALES Trophy Club 16.4%8,372,365$ =5,097,213$ +341,959$ +2,933,192$ Northwest ISD 74.6%38,065,195$ =37,070,411$ +994,784$ +-$ Denton County 6.1%3,103,738$ =2,908,607$ +195,131$ +-$ Trophy CLUB MUD 1 2.8%1,453,097$ =1,361,741$ +91,356$ +-$ 1 5099439392.2%4643797240.7%162322937.3%293319214.2% 30 YEAR - BLOCK C + H : INPUT & OUTPUT PARTICIPATION PARTICIPATION REAL PROPERTY PERSONAL PROPERTY SALES Town Council Page 275 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 19 Financial Feasibility Analysis Calendar Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 TOTAL TAX REVENUE 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 % OCCUPIED 0%0%0%50%75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% REAL PROPERTY Taxable Value - - - 24,000,000 49,500,000 70,129,500 71,532,090 72,962,732 74,421,986 75,910,426 77,428,635 78,977,207 80,556,752 82,167,887 83,811,244 85,487,469 87,197,219 88,941,163 90,719,986 92,534,386 94,385,074 96,272,775 98,198,231 100,162,195 102,165,439 104,208,748 106,292,923 108,418,781 110,587,157 112,798,900 115,054,878 117,355,976 PV GROSS Trophy Club 4,776,017 - - - 119,832 247,154 350,157 357,160 364,303 371,589 379,021 386,601 394,333 402,220 410,264 418,470 426,839 435,376 444,083 452,965 462,024 471,265 480,690 490,304 500,110 510,112 520,314 530,721 541,335 552,162 563,205 574,469 585,958 12,743,034 Northwest ISD 13,893,780 - - - 348,600 718,988 1,018,631 1,039,004 1,059,784 1,080,979 1,102,599 1,124,651 1,147,144 1,170,087 1,193,489 1,217,358 1,241,705 1,266,540 1,291,870 1,317,708 1,344,062 1,370,943 1,398,362 1,426,329 1,454,856 1,483,953 1,513,632 1,543,905 1,574,783 1,606,278 1,638,404 1,671,172 1,704,596 37,070,411 Denton County 2,725,323 - - - 68,379 141,032 199,809 203,805 207,881 212,039 216,279 220,605 225,017 229,517 234,108 238,790 243,566 248,437 253,406 258,474 263,643 268,916 274,295 279,781 285,376 291,084 296,905 302,843 308,900 315,078 321,380 327,807 334,364 7,271,517 Trophy CLUB MUD 1 1,275,932 - - - 32,014 66,028 93,546 95,417 97,325 99,271 101,257 103,282 105,348 107,455 109,604 111,796 114,032 116,312 118,639 121,011 123,432 125,900 128,418 130,987 133,606 136,278 139,004 141,784 144,620 147,512 150,462 153,472 156,541 3,404,353 Total 21,387,785 - - - 568,825 1,173,201 1,662,142 1,695,385 1,729,293 1,763,878 1,799,156 1,835,139 1,871,842 1,909,279 1,947,464 1,986,414 2,026,142 2,066,665 2,107,998 2,150,158 2,193,161 2,237,024 2,281,765 2,327,400 2,373,948 2,421,427 2,469,856 2,519,253 2,569,638 2,621,031 2,673,451 2,726,920 2,781,459 60,489,315 % OCCUPIED 0%0%0%50%75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% PERSONAL PROPERTY Taxable Value - - - 800,000 1,406,475 1,875,300 1,912,806 1,951,062 1,990,083 2,029,885 2,070,483 2,111,892 2,154,130 2,197,213 2,241,157 2,285,980 2,331,700 2,378,334 2,425,901 2,474,419 2,523,907 2,574,385 2,625,873 2,678,390 2,731,958 2,786,597 2,842,329 2,899,176 2,957,159 3,016,302 3,076,628 3,138,161 PV GROSS Trophy Club 128,704 - - - 3,994 7,023 9,363 9,551 9,742 9,936 10,135 10,338 10,545 10,756 10,971 11,190 11,414 11,642 11,875 12,113 12,355 12,602 12,854 13,111 13,373 13,641 13,913 14,192 14,476 14,765 15,060 15,362 15,669 341,959 Northwest ISD 374,410 - - - 11,620 20,429 27,239 27,784 28,339 28,906 29,484 30,074 30,675 31,289 31,915 32,553 33,204 33,868 34,545 35,236 35,941 36,660 37,393 38,141 38,904 39,682 40,475 41,285 42,111 42,953 43,812 44,688 45,582 994,784 Denton County 73,442 - - - 2,279 4,007 5,343 5,450 5,559 5,670 5,783 5,899 6,017 6,137 6,260 6,385 6,513 6,643 6,776 6,912 7,050 7,191 7,335 7,481 7,631 7,784 7,939 8,098 8,260 8,425 8,594 8,766 8,941 195,131 Trophy CLUB MUD 1 34,384 - - - 1,067 1,876 2,501 2,551 2,603 2,655 2,708 2,762 2,817 2,873 2,931 2,989 3,049 3,110 3,172 3,236 3,301 3,367 3,434 3,503 3,573 3,644 3,717 3,791 3,867 3,945 4,023 4,104 4,186 91,356 Total 576,358 - - - 18,961 33,335 44,447 45,335 46,242 47,167 48,110 49,073 50,054 51,055 52,076 53,118 54,180 55,264 56,369 57,496 58,646 59,819 61,016 62,236 63,481 64,750 66,045 67,366 68,713 70,088 71,490 72,919 74,378 1,623,229 % OCCUPIED 0%0%0%50%75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% SALES TAX Taxable Value - - - - 450,000 4,729,500 4,824,090 4,920,572 5,018,983 5,119,363 5,221,750 5,326,185 5,432,709 5,541,363 5,652,190 5,765,234 5,880,539 5,998,150 6,118,113 6,240,475 6,365,284 6,492,590 6,622,442 6,754,891 6,889,988 7,027,788 7,168,344 7,311,711 7,457,945 7,607,104 7,759,246 7,914,431 PV GROSS Total 1,148,340 - - - - 9,000 94,590 96,482 98,411 100,380 102,387 104,435 106,524 108,654 110,827 113,044 115,305 117,611 119,963 122,362 124,809 127,306 129,852 132,449 135,098 137,800 140,556 143,367 146,234 149,159 152,142 155,185 158,289 3,352,220 SUMMARY PV GROSS Trophy Club 6,121,961 - - - 123,826 263,176 454,110 463,192 472,456 481,905 491,543 501,374 511,402 521,630 532,062 542,703 553,558 564,629 575,921 587,440 599,188 611,172 623,396 635,864 648,581 661,552 674,784 688,279 702,045 716,086 730,407 745,016 759,916 16,437,212 Northwest ISD 14,268,189 - - - 360,220 739,417 1,045,870 1,066,787 1,088,123 1,109,885 1,132,083 1,154,725 1,177,819 1,201,376 1,225,403 1,249,911 1,274,909 1,300,408 1,326,416 1,352,944 1,380,003 1,407,603 1,435,755 1,464,470 1,493,760 1,523,635 1,554,107 1,585,190 1,616,893 1,649,231 1,682,216 1,715,860 1,750,177 38,065,195 Denton County 2,798,765 - - - 70,659 145,040 205,152 209,255 213,440 217,709 222,063 226,504 231,034 235,655 240,368 245,175 250,079 255,080 260,182 265,386 270,693 276,107 281,629 287,262 293,007 298,867 304,845 310,942 317,160 323,504 329,974 336,573 343,305 7,466,648 Trophy CLUB MUD 1 1,310,316 - - - 33,081 67,904 96,047 97,968 99,928 101,926 103,965 106,044 108,165 110,328 112,535 114,785 117,081 119,423 121,811 124,247 126,732 129,267 131,852 134,489 137,179 139,923 142,721 145,576 148,487 151,457 154,486 157,576 160,727 3,495,708 Total 23,112,483 - - - 587,786 1,215,536 1,801,179 1,837,202 1,873,946 1,911,425 1,949,654 1,988,647 2,028,420 2,068,988 2,110,368 2,152,575 2,195,627 2,239,539 2,284,330 2,330,017 2,376,617 2,424,149 2,472,632 2,522,085 2,572,527 2,623,977 2,676,457 2,729,986 2,784,586 2,840,277 2,897,083 2,955,024 3,014,125 65,464,764 T A X R E V E N U E P R O J E C T I O N S & C O S T - B E N E F I T A N A L Y S I S Town Council Page 276 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 20 PARTICIPATION REAL PROPERTY Taxable Value - - - 24,000,000 49,500,000 70,129,500 71,532,090 72,962,732 74,421,986 75,910,426 77,428,635 78,977,207 80,556,752 82,167,887 83,811,244 85,487,469 87,197,219 88,941,163 90,719,986 92,534,386 94,385,074 96,272,775 98,198,231 100,162,195 102,165,439 104,208,748 106,292,923 108,418,781 110,587,157 112,798,900 115,054,878 117,355,976 PV GROSS Trophy Club 2,865,610 - - - 71,899 148,292 210,094 214,296 218,582 222,953 227,412 231,961 236,600 241,332 246,159 251,082 256,103 261,225 266,450 271,779 277,215 282,759 288,414 294,182 300,066 306,067 312,189 318,432 324,801 331,297 337,923 344,681 351,575 7,645,820 Northwest ISD - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Denton County 1,635,194 - - - 41,028 84,619 119,885 122,283 124,729 127,223 129,768 132,363 135,010 137,710 140,465 143,274 146,139 149,062 152,043 155,084 158,186 161,350 164,577 167,868 171,226 174,650 178,143 181,706 185,340 189,047 192,828 196,684 200,618 4,362,910 Trophy CLUB MUD 1 765,559 - - - 19,208 39,617 56,127 57,250 58,395 59,563 60,754 61,969 63,209 64,473 65,762 67,077 68,419 69,787 71,183 72,607 74,059 75,540 77,051 78,592 80,164 81,767 83,402 85,070 86,772 88,507 90,277 92,083 93,925 2,042,612 Total 4,968,267 - - - 132,135 272,528 386,107 393,829 401,705 409,739 417,934 426,293 434,819 443,515 452,385 461,433 470,662 480,075 489,677 499,470 509,460 519,649 530,042 540,643 551,455 562,484 573,734 585,209 596,913 608,851 621,028 633,449 646,118 14,051,342 PERSONAL PROPERTY Taxable Value - - - 800,000 1,406,475 1,875,300 1,912,806 1,951,062 1,990,083 2,029,885 2,070,483 2,111,892 2,154,130 2,197,213 2,241,157 2,285,980 2,331,700 2,378,334 2,425,901 2,474,419 2,523,907 2,574,385 2,625,873 2,678,390 2,731,958 2,786,597 2,842,329 2,899,176 2,957,159 3,016,302 3,076,628 3,138,161 PV GROSS Trophy Club - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Northwest ISD - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Denton County - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Trophy CLUB MUD 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - SALES TAX Taxable Value - - - - 450,000 4,729,500 4,824,090 4,920,572 5,018,983 5,119,363 5,221,750 5,326,185 5,432,709 5,541,363 5,652,190 5,765,234 5,880,539 5,998,150 6,118,113 6,240,475 6,365,284 6,492,590 6,622,442 6,754,891 6,889,988 7,027,788 7,168,344 7,311,711 7,457,945 7,607,104 7,759,246 7,914,431 PV GROSS Total 143,543 - - - - 1,125 11,824 12,060 12,301 12,547 12,798 13,054 13,315 13,582 13,853 14,130 14,413 14,701 14,995 15,295 15,601 15,913 16,231 16,556 16,887 17,225 17,569 17,921 18,279 18,645 19,018 19,398 19,786 419,027 SUMMARY - PV GROSS Trophy Club 3,017,765 - - - 71,899 149,417 221,918 226,356 230,883 235,501 240,211 245,015 249,915 254,914 260,012 265,212 270,516 275,927 281,445 287,074 292,816 298,672 304,645 310,738 316,953 323,292 329,758 336,353 343,080 349,942 356,941 364,080 371,361 8,064,848 Northwest ISD - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Denton County 1,635,194 - - - 41,028 84,619 119,885 122,283 124,729 127,223 129,768 132,363 135,010 137,710 140,465 143,274 146,139 149,062 152,043 155,084 158,186 161,350 164,577 167,868 171,226 174,650 178,143 181,706 185,340 189,047 192,828 196,684 200,618 4,362,910 Trophy CLUB MUD 1 765,559 - - - 19,208 39,617 56,127 57,250 58,395 59,563 60,754 61,969 63,209 64,473 65,762 67,077 68,419 69,787 71,183 72,607 74,059 75,540 77,051 78,592 80,164 81,767 83,402 85,070 86,772 88,507 90,277 92,083 93,925 2,042,612 Total 5,111,810 - - - 132,135 273,653 397,930 405,889 414,007 422,287 430,733 439,347 448,134 457,097 466,239 475,564 485,075 494,776 504,672 514,765 525,061 535,562 546,273 557,199 568,343 579,709 591,304 603,130 615,192 627,496 640,046 652,847 665,904 14,470,370 TOTAL TAX REVENUE - PARTICIPATION = NET BENEFIT SUMMARY PV GROSS Trophy Club 3,104,196 - - - 51,927 113,759 232,192 236,836 241,573 246,404 251,332 256,359 261,486 266,716 272,050 277,491 283,041 288,702 294,476 300,365 306,373 312,500 318,750 325,125 331,628 338,260 345,025 351,926 358,965 366,144 373,467 380,936 388,555 8,372,365 Northwest ISD 14,268,189 - - - 360,220 739,417 1,045,870 1,066,787 1,088,123 1,109,885 1,132,083 1,154,725 1,177,819 1,201,376 1,225,403 1,249,911 1,274,909 1,300,408 1,326,416 1,352,944 1,380,003 1,407,603 1,435,755 1,464,470 1,493,760 1,523,635 1,554,107 1,585,190 1,616,893 1,649,231 1,682,216 1,715,860 1,750,177 38,065,195 Denton County 1,163,571 - - - 29,631 60,420 85,266 86,972 88,711 90,485 92,295 94,141 96,024 97,944 99,903 101,901 103,939 106,018 108,139 110,301 112,507 114,757 117,053 119,394 121,782 124,217 126,702 129,236 131,820 134,457 137,146 139,889 142,687 3,103,738 Trophy CLUB MUD 1 544,757 - - - 13,873 28,287 39,920 40,718 41,533 42,363 43,210 44,075 44,956 45,855 46,772 47,708 48,662 49,635 50,628 51,640 52,673 53,727 54,801 55,897 57,015 58,156 59,319 60,505 61,715 62,949 64,208 65,493 66,802 1,453,097 Total 18,000,673 - - - 455,651 941,883 1,403,248 1,431,313 1,459,939 1,489,138 1,518,921 1,549,299 1,580,285 1,611,891 1,644,129 1,677,012 1,710,552 1,744,763 1,779,658 1,815,251 1,851,556 1,888,587 1,926,359 1,964,886 2,004,184 2,044,268 2,085,153 2,126,856 2,169,393 2,212,781 2,257,037 2,302,177 2,348,221 50,994,394 Town Council Page 277 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 21 Financial Feasibility Analysis ►INPUT INFLATION RATE 2.00% DISCOUNT RATE 6.00% REAL PROPERTY TAX Trophy Club 0.49930000 60%0.2995800 Northwest ISD 1.45250000 0%0.0000000 Denton County 0.28491400 60%0.1709484 Trophy CLUB MUD 1 0.13339000 60%0.0800340 2.37010400 0.5505624 PERSONAL PROPERTY TAX Trophy Club 0.49930000 0%0.0000000 Northwest ISD 1.45250000 0%0.0000000 Denton County 0.28491400 0%0.0000000 Trophy CLUB MUD 1 0.13339000 0%0.0000000 2.37010400 0.0000000 Sales Tax Rate 0.0200000 12.50%0.0025000 Block D AREA Year SF/UNITS $ / SF TAX VALUE $ / SF TAX VALUE $ / SF TAX VALUE Retail 2019 17,054 300.00$ 5,116,200$ 20.00$ 341,080$ 300.00$ 5,116,200$ TOTAL 17,054 5,116,200 341,080 5,116,200 OUTPUT ► TOTAL TAX REVENUE TOTAL Trophy Club 55.9%4,524,779$ =892,061$ +59,471$ +3,573,247$ Northwest ISD 34.2%2,768,075$ =2,595,070$ +173,005$ +-$ Denton County 6.7%542,970$ =509,034$ +33,936$ +-$ Trophy CLUB MUD 1 3.1%254,206$ =238,318$ +15,888$ +-$ 100.0%8,090,029 4,234,483$ 282,299$ 3,573,247$ 100.0%52.3%3.5%44.2% TOTAL PARTICIPATION TOTAL Trophy Club 68.6%981,892$ =535,237$ +-$ +446,656$ Northwest ISD 0.0%-$ =-$ +-$ +-$ Denton County 21.4%305,420$ =305,420$ +-$ +-$ Trophy CLUB MUD 1 10.0%142,991$ =142,991$ +-$ +-$ 100.0%1,430,303$ 983,648$ -$ 446,656$ 100.0%68.8%0.0%31.2% NET BENEFIT TOTAL Trophy Club 53.2%3,542,886$ =356,824$ +59,471$ +3,126,591$ Northwest ISD 41.6%2,768,075$ =2,595,070$ +173,005$ +-$ Denton County 3.6%237,549$ =203,614$ +33,936$ +-$ Trophy CLUB MUD 1 1.7%111,215$ =95,327$ +15,888$ +-$ 100.0%6,659,725$ 3,250,836$ 282,299$ 3,126,591$ 100.0%48.8%4.2%46.9% 30 YEAR - BLOCK D : INPUT & OUTPUT PARTICIPATION PARTICIPATION REAL PROPERTY PERSONAL PROPERTY SALES REAL PROPERTY PERSONAL PROPERTY SALES REAL PROPERTY REAL PROPERTY PERSONAL PROPERTY SALES PERSONAL PROPERTY SALES Town Council Page 278 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 22 Financial Feasibility Analysis Calendar Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 TOTAL TAX REVENUE 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 % OCCUPIED 0%0%0%0%50%75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% REAL PROPERTY Taxable Value - - - 2,558,100 3,837,150 5,116,200 5,218,524 5,322,894 5,429,352 5,537,939 5,648,698 5,761,672 5,876,906 5,994,444 6,114,333 6,236,619 6,361,352 6,488,579 6,618,350 6,750,717 6,885,732 7,023,446 7,163,915 7,307,193 7,453,337 7,602,404 7,754,452 7,909,541 8,067,732 8,229,087 8,393,668 PV GROSS Trophy Club 326,117 - - - - 12,773 19,159 25,545 26,056 26,577 27,109 27,651 28,204 28,768 29,343 29,930 30,529 31,139 31,762 32,397 33,045 33,706 34,380 35,068 35,769 36,485 37,215 37,959 38,718 39,492 40,282 41,088 41,910 892,061 Northwest ISD 948,697 - - - - 37,156 55,735 74,313 75,799 77,315 78,861 80,439 82,047 83,688 85,362 87,069 88,811 90,587 92,399 94,247 96,132 98,054 100,015 102,016 104,056 106,137 108,260 110,425 112,633 114,886 117,184 119,527 121,918 2,595,070 Denton County 186,091 - - - - 7,288 10,933 14,577 14,868 15,166 15,469 15,778 16,094 16,416 16,744 17,079 17,421 17,769 18,124 18,487 18,857 19,234 19,618 20,011 20,411 20,819 21,236 21,660 22,094 22,535 22,986 23,446 23,915 509,034 Trophy CLUB MUD 1 87,123 - - - - 3,412 5,118 6,824 6,961 7,100 7,242 7,387 7,535 7,685 7,839 7,996 8,156 8,319 8,485 8,655 8,828 9,005 9,185 9,369 9,556 9,747 9,942 10,141 10,344 10,551 10,762 10,977 11,196 238,318 Total 1,548,028 - - - - 60,630 90,944 121,259 123,684 126,158 128,681 131,255 133,880 136,558 139,289 142,075 144,916 147,814 150,771 153,786 156,862 159,999 163,199 166,463 169,792 173,188 176,652 180,185 183,789 187,464 191,214 195,038 198,939 4,234,483 % OCCUPIED 0%0%0%0%50%75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% PERSONAL PROPERTY Taxable Value - - - - 170,540 255,810 341,080 347,902 354,860 361,957 369,196 376,580 384,111 391,794 399,630 407,622 415,775 424,090 432,572 441,223 450,048 459,049 468,230 477,594 487,146 496,889 506,827 516,963 527,303 537,849 548,606 559,578 PV GROSS Trophy Club 21,741 - - - - 852 1,277 1,703 1,737 1,772 1,807 1,843 1,880 1,918 1,956 1,995 2,035 2,076 2,117 2,160 2,203 2,247 2,292 2,338 2,385 2,432 2,481 2,531 2,581 2,633 2,685 2,739 2,794 59,471 Northwest ISD 63,246 - - - - 2,477 3,716 4,954 5,053 5,154 5,257 5,363 5,470 5,579 5,691 5,805 5,921 6,039 6,160 6,283 6,409 6,537 6,668 6,801 6,937 7,076 7,217 7,362 7,509 7,659 7,812 7,968 8,128 173,005 Denton County 12,406 - - - - 486 729 972 991 1,011 1,031 1,052 1,073 1,094 1,116 1,139 1,161 1,185 1,208 1,232 1,257 1,282 1,308 1,334 1,361 1,388 1,416 1,444 1,473 1,502 1,532 1,563 1,594 33,936 Trophy CLUB MUD 1 5,808 - - - - 227 341 455 464 473 483 492 502 512 523 533 544 555 566 577 589 600 612 625 637 650 663 676 690 703 717 732 746 15,888 Total 103,202 - - - - 4,042 6,063 8,084 8,246 8,411 8,579 8,750 8,925 9,104 9,286 9,472 9,661 9,854 10,051 10,252 10,457 10,667 10,880 11,098 11,319 11,546 11,777 12,012 12,253 12,498 12,748 13,003 13,263 282,299 % OCCUPIED 0%0%0%0%50%75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% SALES TAX Taxable Value - - - - 2,558,100 3,837,150 5,116,200 5,218,524 5,322,894 5,429,352 5,537,939 5,648,698 5,761,672 5,876,906 5,994,444 6,114,333 6,236,619 6,361,352 6,488,579 6,618,350 6,750,717 6,885,732 7,023,446 7,163,915 7,307,193 7,453,337 7,602,404 7,754,452 7,909,541 8,067,732 8,229,087 8,393,668 PV GROSS Total 1,306,296 - - - - 51,162 76,743 102,324 104,370 106,458 108,587 110,759 112,974 115,233 117,538 119,889 122,287 124,732 127,227 129,772 132,367 135,014 137,715 140,469 143,278 146,144 149,067 152,048 155,089 158,191 161,355 164,582 167,873 3,573,247 SUMMARY PV GROSS Trophy Club 1,654,154 - - - - 64,786 97,179 129,572 132,164 134,807 137,503 140,253 143,058 145,919 148,838 151,814 154,851 157,948 161,107 164,329 167,615 170,968 174,387 177,875 181,432 185,061 188,762 192,537 196,388 200,316 204,322 208,409 212,577 4,524,779 Northwest ISD 1,011,944 - - - - 39,633 59,450 79,267 80,852 82,469 84,119 85,801 87,517 89,268 91,053 92,874 94,731 96,626 98,559 100,530 102,540 104,591 106,683 108,817 110,993 113,213 115,477 117,787 120,142 122,545 124,996 127,496 130,046 2,768,075 Denton County 198,497 - - - - 7,774 11,661 15,549 15,860 16,177 16,500 16,830 17,167 17,510 17,860 18,218 18,582 18,954 19,333 19,719 20,114 20,516 20,926 21,345 21,772 22,207 22,651 23,104 23,566 24,038 24,519 25,009 25,509 542,970 Trophy CLUB MUD 1 92,932 - - - - 3,640 5,460 7,279 7,425 7,574 7,725 7,880 8,037 8,198 8,362 8,529 8,700 8,874 9,051 9,232 9,417 9,605 9,797 9,993 10,193 10,397 10,605 10,817 11,033 11,254 11,479 11,709 11,943 254,206 Total 2,957,526 - - - - 115,834 173,750 231,667 236,301 241,027 245,847 250,764 255,779 260,895 266,113 271,435 276,864 282,401 288,049 293,810 299,686 305,680 311,794 318,029 324,390 330,878 337,495 344,245 351,130 358,153 365,316 372,622 380,075 8,090,029 T A X R E V E N U E P R O J E C T I O N S & C O S T - B E N E F I T A N A L Y S I S Town Council Page 279 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 23 PARTICIPATION REAL PROPERTY Taxable Value - - - - 2,558,100 3,837,150 5,116,200 5,218,524 5,322,894 5,429,352 5,537,939 5,648,698 5,761,672 5,876,906 5,994,444 6,114,333 6,236,619 6,361,352 6,488,579 6,618,350 6,750,717 6,885,732 7,023,446 7,163,915 7,307,193 7,453,337 7,602,404 7,754,452 7,909,541 8,067,732 8,229,087 8,393,668 PV GROSS Trophy Club 195,670 - - - - 7,664 11,495 15,327 15,634 15,946 16,265 16,591 16,922 17,261 17,606 17,958 18,317 18,684 19,057 19,438 19,827 20,224 20,628 21,041 21,462 21,891 22,329 22,775 23,231 23,695 24,169 24,653 25,146 535,237 Northwest ISD - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Denton County 111,655 - - - - 4,373 6,560 8,746 8,921 9,099 9,281 9,467 9,656 9,849 10,046 10,247 10,452 10,661 10,875 11,092 11,314 11,540 11,771 12,006 12,247 12,492 12,741 12,996 13,256 13,521 13,792 14,067 14,349 305,420 Trophy CLUB MUD 1 52,274 - - - - 2,047 3,071 4,095 4,177 4,260 4,345 4,432 4,521 4,611 4,704 4,798 4,894 4,991 5,091 5,193 5,297 5,403 5,511 5,621 5,734 5,848 5,965 6,085 6,206 6,330 6,457 6,586 6,718 142,991 Total 359,599 - - - - 14,084 21,126 28,168 28,731 29,306 29,892 30,490 31,100 31,722 32,356 33,003 33,663 34,336 35,023 35,724 36,438 37,167 37,910 38,668 39,442 40,231 41,035 41,856 42,693 43,547 44,418 45,306 46,212 983,648 PERSONAL PROPERTY Taxable Value - - - - 170,540 255,810 341,080 347,902 354,860 361,957 369,196 376,580 384,111 391,794 399,630 407,622 415,775 424,090 432,572 441,223 450,048 459,049 468,230 477,594 487,146 496,889 506,827 516,963 527,303 537,849 548,606 559,578 PV GROSS Trophy Club - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Northwest ISD - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Denton County - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Trophy CLUB MUD 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - SALES TAX Taxable Value - - - - 2,558,100 3,837,150 5,116,200 5,218,524 5,322,894 5,429,352 5,537,939 5,648,698 5,761,672 5,876,906 5,994,444 6,114,333 6,236,619 6,361,352 6,488,579 6,618,350 6,750,717 6,885,732 7,023,446 7,163,915 7,307,193 7,453,337 7,602,404 7,754,452 7,909,541 8,067,732 8,229,087 8,393,668 PV GROSS Total 163,287 - - - - 6,395 9,593 12,791 13,046 13,307 13,573 13,845 14,122 14,404 14,692 14,986 15,286 15,592 15,903 16,221 16,546 16,877 17,214 17,559 17,910 18,268 18,633 19,006 19,386 19,774 20,169 20,573 20,984 446,656 SUMMARY PV GROSS Trophy Club 358,957 - - - - 14,059 21,088 28,118 28,680 29,254 29,839 30,435 31,044 31,665 32,298 32,944 33,603 34,275 34,961 35,660 36,373 37,101 37,843 38,599 39,371 40,159 40,962 41,781 42,617 43,469 44,339 45,225 46,130 981,892 Northwest ISD - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Denton County 111,655 - - - - 4,373 6,560 8,746 8,921 9,099 9,281 9,467 9,656 9,849 10,046 10,247 10,452 10,661 10,875 11,092 11,314 11,540 11,771 12,006 12,247 12,492 12,741 12,996 13,256 13,521 13,792 14,067 14,349 305,420 Trophy CLUB MUD 1 52,274 - - - - 2,047 3,071 4,095 4,177 4,260 4,345 4,432 4,521 4,611 4,704 4,798 4,894 4,991 5,091 5,193 5,297 5,403 5,511 5,621 5,734 5,848 5,965 6,085 6,206 6,330 6,457 6,586 6,718 142,991 Total 522,886 - - - - 20,479 30,719 40,958 41,778 42,613 43,465 44,335 45,221 46,126 47,048 47,989 48,949 49,928 50,927 51,945 52,984 54,044 55,125 56,227 57,352 58,499 59,669 60,862 62,079 63,321 64,587 65,879 67,197 1,430,303 TOTAL TAX REVENUE - PARTICIPATION = NET BENEFIT SUMMARY PV GROSS Trophy Club 1,295,197 - - - - 50,727 76,091 101,455 103,484 105,553 107,664 109,818 112,014 114,254 116,539 118,870 121,248 123,673 126,146 128,669 131,242 133,867 136,545 139,275 142,061 144,902 147,800 150,756 153,771 156,847 159,984 163,183 166,447 3,542,886 Northwest ISD 1,011,944 - - - - 39,633 59,450 79,267 80,852 82,469 84,119 85,801 87,517 89,268 91,053 92,874 94,731 96,626 98,559 100,530 102,540 104,591 106,683 108,817 110,993 113,213 115,477 117,787 120,142 122,545 124,996 127,496 130,046 2,768,075 Denton County 86,842 - - - - 3,401 5,102 6,802 6,939 7,077 7,219 7,363 7,511 7,661 7,814 7,970 8,130 8,292 8,458 8,627 8,800 8,976 9,155 9,338 9,525 9,716 9,910 10,108 10,310 10,517 10,727 10,941 11,160 237,549 Trophy CLUB MUD 1 40,658 - - - - 1,592 2,389 3,185 3,248 3,313 3,380 3,447 3,516 3,587 3,658 3,731 3,806 3,882 3,960 4,039 4,120 4,202 4,286 4,372 4,459 4,549 4,640 4,732 4,827 4,924 5,022 5,122 5,225 111,215 Total 2,434,640 - - - - 95,354 143,032 190,709 194,523 198,413 202,382 206,429 210,558 214,769 219,065 223,446 227,915 232,473 237,122 241,865 246,702 251,636 256,669 261,802 267,038 272,379 277,827 283,383 289,051 294,832 300,729 306,743 312,878 6,659,725 Town Council Page 280 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 24 Financial Feasibility Analysis ►INPUT INFLATION RATE 2.00% DISCOUNT RATE 6.00% REAL PROPERTY TAX Trophy Club 0.49930000 60%0.2995800 Northwest ISD 1.45250000 0%0.0000000 Denton County 0.28491400 60%0.1709484 Trophy CLUB MUD 1 0.13339000 60%0.0800340 2.37010400 0.5505624 PERSONAL PROPERTY TAX Trophy Club 0.49930000 0%0.0000000 Northwest ISD 1.45250000 0%0.0000000 Denton County 0.28491400 0%0.0000000 Trophy CLUB MUD 1 0.13339000 0%0.0000000 2.37010400 0.0000000 Sales Tax Rate 0.0200000 12.50%0.0025000 Block E & F AREA Year SF/UNITS $ / SF TAX VALUE $ / SF TAX VALUE $ / SF TAX VALUE Retail 2019 23,700 300.00$ 7,110,000$ 20.00$ 474,000$ 300.00$ 7,110,000$ Office 2019 12,000 200.00$ 2,400,000$ 10.00$ 120,000$ TOTAL 35,700 9,510,000 594,000 7,110,000 ►OUTPUT TOTAL TAX REVENUE TOTAL Trophy Club 50.5%6,727,487$ =1,658,164$ +103,570$ +4,965,753$ Northwest ISD 38.5%5,125,013$ =4,823,721$ +301,292$ +-$ Denton County 7.5%1,005,293$ =946,193$ +59,100$ +-$ Trophy CLUB MUD 1 3.5%470,654$ =442,985$ +27,669$ +-$ 100.0%13,328,447 7,871,064$ 491,631$ 4,965,753$ 100.0%59.1%3.7%37.3% TOTAL PARTICIPATION TOTAL Trophy Club 66.0%1,615,618$ =994,899$ +-$ +620,719$ Northwest ISD 0.0%-$ =-$ +-$ +-$ Denton County 23.2%567,716$ =567,716$ +-$ +-$ Trophy CLUB MUD 1 10.9%265,791$ =265,791$ +-$ +-$ 100.0%2,449,125$ 1,828,406$ -$ 620,719$ 100.0%74.7%0.0%25.3% NET BENEFIT TOTAL Trophy Club 47.0%5,111,869$ =663,266$ +103,570$ +4,345,034$ Northwest ISD 47.1%5,125,013$ =4,823,721$ +301,292$ +-$ Denton County 4.0%437,577$ =378,477$ +59,100$ +-$ Trophy CLUB MUD 1 1.9%204,863$ =177,194$ +27,669$ +-$ 100.0%10,879,323$ 6,042,658$ 491,631$ 4,345,034$ 100.0%55.5%4.5%39.9% REAL PROPERTY PERSONAL PROPERTY SALES REAL PROPERTY PERSONAL PROPERTY SALES REAL PROPERTY PERSONAL PROPERTY SALES 30 YEAR - BLOCK E : INPUT & OUTPUT PARTICIPATION PARTICIPATION REAL PROPERTY PERSONAL PROPERTY SALES Town Council Page 281 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 25 Financial Feasibility Analysis Calendar Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 TOTAL TAX REVENUE 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 % OCCUPIED 0%0%0%0%50%75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% REAL PROPERTY Taxable Value - - - 4,755,000 7,132,500 9,510,000 9,700,200 9,894,204 10,092,088 10,293,930 10,499,808 10,709,805 10,924,001 11,142,481 11,365,330 11,592,637 11,824,490 12,060,979 12,302,199 12,548,243 12,799,208 13,055,192 13,316,296 13,582,622 13,854,274 14,131,360 14,413,987 14,702,267 14,996,312 15,296,238 15,602,163 PV GROSS Trophy Club 606,186 - - - - 23,742 35,613 47,483 48,433 49,402 50,390 51,398 52,426 53,474 54,544 55,634 56,747 57,882 59,040 60,220 61,425 62,653 63,906 65,185 66,488 67,818 69,174 70,558 71,969 73,408 74,877 76,374 77,902 1,658,164 Northwest ISD 1,763,440 - - - - 69,066 103,600 138,133 140,895 143,713 146,588 149,519 152,510 155,560 158,671 161,845 165,081 168,383 171,751 175,186 178,689 182,263 185,908 189,627 193,419 197,288 201,233 205,258 209,363 213,550 217,821 222,178 226,621 4,823,721 Denton County 345,906 - - - - 13,548 20,321 27,095 27,637 28,190 28,754 29,329 29,915 30,514 31,124 31,746 32,381 33,029 33,690 34,363 35,051 35,752 36,467 37,196 37,940 38,699 39,473 40,262 41,067 41,889 42,727 43,581 44,453 946,193 Trophy CLUB MUD 1 161,945 - - - - 6,343 9,514 12,685 12,939 13,198 13,462 13,731 14,006 14,286 14,572 14,863 15,160 15,463 15,773 16,088 16,410 16,738 17,073 17,414 17,763 18,118 18,480 18,850 19,227 19,611 20,004 20,404 20,812 442,985 Total 2,877,477 - - - - 112,698 169,048 225,397 229,905 234,503 239,193 243,977 248,856 253,834 258,910 264,088 269,370 274,758 280,253 285,858 291,575 297,406 303,355 309,422 315,610 321,922 328,361 334,928 341,626 348,459 355,428 362,537 369,787 7,871,064 % OCCUPIED 0%0%0%0%50%75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% PERSONAL PROPERTY Taxable Value - - - - 297,000 445,500 594,000 605,880 617,998 630,358 642,965 655,824 668,940 682,319 695,966 709,885 724,083 738,564 753,336 768,402 783,770 799,446 815,435 831,743 848,378 865,346 882,653 900,306 918,312 936,678 955,412 974,520 PV GROSS Trophy Club 37,863 - - - - 1,483 2,224 2,966 3,025 3,086 3,147 3,210 3,275 3,340 3,407 3,475 3,544 3,615 3,688 3,761 3,837 3,913 3,992 4,071 4,153 4,236 4,321 4,407 4,495 4,585 4,677 4,770 4,866 103,570 Northwest ISD 110,145 - - - - 4,314 6,471 8,628 8,800 8,976 9,156 9,339 9,526 9,716 9,911 10,109 10,311 10,517 10,728 10,942 11,161 11,384 11,612 11,844 12,081 12,323 12,569 12,821 13,077 13,338 13,605 13,877 14,155 301,292 Denton County 21,605 - - - - 846 1,269 1,692 1,726 1,761 1,796 1,832 1,869 1,906 1,944 1,983 2,023 2,063 2,104 2,146 2,189 2,233 2,278 2,323 2,370 2,417 2,465 2,515 2,565 2,616 2,669 2,722 2,777 59,100 Trophy CLUB MUD 1 10,115 - - - - 396 594 792 808 824 841 858 875 892 910 928 947 966 985 1,005 1,025 1,045 1,066 1,088 1,109 1,132 1,154 1,177 1,201 1,225 1,249 1,274 1,300 27,669 Total 179,729 - - - - 7,039 10,559 14,078 14,360 14,647 14,940 15,239 15,544 15,855 16,172 16,495 16,825 17,162 17,505 17,855 18,212 18,576 18,948 19,327 19,713 20,107 20,510 20,920 21,338 21,765 22,200 22,644 23,097 491,631 % OCCUPIED 0%0%0%0%50%75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% SALES TAX Taxable Value - - - - 3,555,000 5,332,500 7,110,000 7,252,200 7,397,244 7,545,189 7,696,093 7,850,015 8,007,015 8,167,155 8,330,498 8,497,108 8,667,050 8,840,391 9,017,199 9,197,543 9,381,494 9,569,124 9,760,506 9,955,716 10,154,831 10,357,927 10,565,086 10,776,388 10,991,915 11,211,754 11,435,989 11,664,709 PV GROSS Total 1,815,363 - - - - 71,100 106,650 142,200 145,044 147,945 150,904 153,922 157,000 160,140 163,343 166,610 169,942 173,341 176,808 180,344 183,951 187,630 191,382 195,210 199,114 203,097 207,159 211,302 215,528 219,838 224,235 228,720 233,294 4,965,753 SUMMARY PV GROSS Trophy Club 2,459,412 - - - - 96,325 144,487 192,649 196,502 200,432 204,441 208,530 212,700 216,954 221,293 225,719 230,234 234,838 239,535 244,326 249,212 254,197 259,281 264,466 269,755 275,151 280,654 286,267 291,992 297,832 303,788 309,864 316,062 6,727,487 Northwest ISD 1,873,585 - - - - 73,380 110,070 146,761 149,696 152,690 155,744 158,858 162,036 165,276 168,582 171,953 175,393 178,900 182,478 186,128 189,850 193,647 197,520 201,471 205,500 209,610 213,802 218,079 222,440 226,889 231,427 236,055 240,776 5,125,013 Denton County 367,512 - - - - 14,394 21,591 28,788 29,363 29,951 30,550 31,161 31,784 32,420 33,068 33,729 34,404 35,092 35,794 36,510 37,240 37,985 38,744 39,519 40,310 41,116 41,938 42,777 43,633 44,505 45,395 46,303 47,229 1,005,293 Trophy CLUB MUD 1 172,060 - - - - 6,739 10,108 13,478 13,747 14,022 14,303 14,589 14,880 15,178 15,482 15,791 16,107 16,429 16,758 17,093 17,435 17,784 18,139 18,502 18,872 19,250 19,635 20,027 20,428 20,836 21,253 21,678 22,112 470,654 Total 4,872,570 - - - - 190,838 286,256 381,675 389,309 397,095 405,037 413,138 421,400 429,828 438,425 447,193 456,137 465,260 474,565 484,057 493,738 503,612 513,685 523,958 534,438 545,126 556,029 567,149 578,492 590,062 601,864 613,901 626,179 13,328,447 T A X R E V E N U E P R O J E C T I O N S & C O S T - B E N E F I T A N A L Y S I S Town Council Page 282 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 26 PARTICIPATION REAL PROPERTY Taxable Value - - - - 4,755,000 7,132,500 9,510,000 9,700,200 9,894,204 10,092,088 10,293,930 10,499,808 10,709,805 10,924,001 11,142,481 11,365,330 11,592,637 11,824,490 12,060,979 12,302,199 12,548,243 12,799,208 13,055,192 13,316,296 13,582,622 13,854,274 14,131,360 14,413,987 14,702,267 14,996,312 15,296,238 15,602,163 PV GROSS Trophy Club 363,712 - - - - 14,245 21,368 28,490 29,060 29,641 30,234 30,839 31,455 32,084 32,726 33,381 34,048 34,729 35,424 36,132 36,855 37,592 38,344 39,111 39,893 40,691 41,505 42,335 43,181 44,045 44,926 45,824 46,741 994,899 Northwest ISD - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Denton County 207,544 - - - - 8,129 12,193 16,257 16,582 16,914 17,252 17,597 17,949 18,308 18,674 19,048 19,429 19,817 20,214 20,618 21,030 21,451 21,880 22,318 22,764 23,219 23,684 24,157 24,640 25,133 25,636 26,149 26,672 567,716 Trophy CLUB MUD 1 97,167 - - - - 3,806 5,708 7,611 7,763 7,919 8,077 8,239 8,403 8,571 8,743 8,918 9,096 9,278 9,464 9,653 9,846 10,043 10,244 10,449 10,658 10,871 11,088 11,310 11,536 11,767 12,002 12,242 12,487 265,791 Total 668,423 - - - - 26,179 39,269 52,358 53,406 54,474 55,563 56,675 57,808 58,964 60,143 61,346 62,573 63,825 65,101 66,403 67,731 69,086 70,468 71,877 73,315 74,781 76,276 77,802 79,358 80,945 82,564 84,215 85,900 1,828,406 PERSONAL PROPERTY Taxable Value - - - - 297,000 445,500 594,000 605,880 617,998 630,358 642,965 655,824 668,940 682,319 695,966 709,885 724,083 738,564 753,336 768,402 783,770 799,446 815,435 831,743 848,378 865,346 882,653 900,306 918,312 936,678 955,412 974,520 PV GROSS Trophy Club - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Northwest ISD - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Denton County - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Trophy CLUB MUD 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Total - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - SALES TAX Taxable Value - - - - 3,555,000 5,332,500 7,110,000 7,252,200 7,397,244 7,545,189 7,696,093 7,850,015 8,007,015 8,167,155 8,330,498 8,497,108 8,667,050 8,840,391 9,017,199 9,197,543 9,381,494 9,569,124 9,760,506 9,955,716 10,154,831 10,357,927 10,565,086 10,776,388 10,991,915 11,211,754 11,435,989 11,664,709 PV GROSS Total 226,920 - - - - 8,888 13,331 17,775 18,131 18,493 18,863 19,240 19,625 20,018 20,418 20,826 21,243 21,668 22,101 22,543 22,994 23,454 23,923 24,401 24,889 25,387 25,895 26,413 26,941 27,480 28,029 28,590 29,162 620,719 SUMMARY PV GROSS Trophy Club 590,632 - - - - 23,133 34,699 46,265 47,190 48,134 49,097 50,079 51,080 52,102 53,144 54,207 55,291 56,397 57,525 58,675 59,849 61,046 62,267 63,512 64,782 66,078 67,399 68,747 70,122 71,525 72,955 74,414 75,903 1,615,618 Northwest ISD - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Denton County 207,544 - - - - 8,129 12,193 16,257 16,582 16,914 17,252 17,597 17,949 18,308 18,674 19,048 19,429 19,817 20,214 20,618 21,030 21,451 21,880 22,318 22,764 23,219 23,684 24,157 24,640 25,133 25,636 26,149 26,672 567,716 Trophy CLUB MUD 1 97,167 - - - - 3,806 5,708 7,611 7,763 7,919 8,077 8,239 8,403 8,571 8,743 8,918 9,096 9,278 9,464 9,653 9,846 10,043 10,244 10,449 10,658 10,871 11,088 11,310 11,536 11,767 12,002 12,242 12,487 265,791 Total 895,343 - - - - 35,067 52,600 70,133 71,536 72,967 74,426 75,915 77,433 78,982 80,561 82,173 83,816 85,492 87,202 88,946 90,725 92,540 94,390 96,278 98,204 100,168 102,171 104,215 106,299 108,425 110,593 112,805 115,061 2,449,125 TOTAL TAX REVENUE - PARTICIPATION = NET BENEFIT SUMMARY PV GROSS Trophy Club 1,868,780 - - - - 73,192 109,788 146,384 149,312 152,298 155,344 158,451 161,620 164,852 168,149 171,512 174,943 178,442 182,010 185,651 189,364 193,151 197,014 200,954 204,973 209,073 213,254 217,519 221,870 226,307 230,833 235,450 240,159 5,111,869 Northwest ISD 1,873,585 - - - - 73,380 110,070 146,761 149,696 152,690 155,744 158,858 162,036 165,276 168,582 171,953 175,393 178,900 182,478 186,128 189,850 193,647 197,520 201,471 205,500 209,610 213,802 218,079 222,440 226,889 231,427 236,055 240,776 5,125,013 Denton County 159,968 - - - - 6,265 9,398 12,531 12,781 13,037 13,297 13,563 13,835 14,111 14,394 14,681 14,975 15,275 15,580 15,892 16,210 16,534 16,864 17,202 17,546 17,897 18,255 18,620 18,992 19,372 19,759 20,155 20,558 437,577 Trophy CLUB MUD 1 74,893 - - - - 2,933 4,400 5,866 5,984 6,103 6,226 6,350 6,477 6,607 6,739 6,874 7,011 7,151 7,294 7,440 7,589 7,741 7,896 8,053 8,215 8,379 8,546 8,717 8,892 9,069 9,251 9,436 9,625 204,863 Total 3,977,227 - - - - 155,771 233,656 311,542 317,773 324,128 330,611 337,223 343,967 350,847 357,864 365,021 372,321 379,768 387,363 395,110 403,013 411,073 419,294 427,680 436,234 444,958 453,858 462,935 472,193 481,637 491,270 501,095 511,117 10,879,323 Town Council Page 283 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 27 Financial Feasibility Analysis TAXABLE BASE YEAR GROWTH 2% DISCOUNT RATE 6% Trophy Club 0.4993000 100% 0.4993000 Trophy Club 0.4993000 100% 0.4993000 Northwest ISD 1.4525000 100% 1.4525000 Northwest ISD 1.4525000 100% 1.4525000 Denton County 0.2849140 100% 0.2849140 Denton County 0.2849140 100% 0.2849140 Trophy CLUB MUD 1 0.1333900 100% 0.1333900 Trophy CLUB MUD 1 0.1333900 100% 0.1333900 2.3701040 2.3701040 2.3701040 2.3701040 BASE YEAR 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 FY ENDING SEPTEMBER 30TH 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 TOTALS BASE YEAR Trophy Club 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 Northwest ISD 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 Denton County 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 Trophy CLUB MUD 1 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 5,589,082 TAXABLE VALUE Trophy Club 5,700,864 5,814,881 5,931,179 6,049,802 6,170,798 6,294,214 6,420,098 6,548,500 6,679,470 6,813,060 6,949,321 7,088,307 7,230,074 7,374,675 7,522,169 7,672,612 7,826,064 7,982,585 8,142,237 8,305,082 8,471,183 8,640,607 8,813,419 8,989,688 9,169,481 9,352,871 9,539,928 9,730,727 9,925,342 10,123,848 10,326,325 10,532,852 Northwest ISD 5,700,864 5,814,881 5,931,179 6,049,802 6,170,798 6,294,214 6,420,098 6,548,500 6,679,470 6,813,060 6,949,321 7,088,307 7,230,074 7,374,675 7,522,169 7,672,612 7,826,064 7,982,585 8,142,237 8,305,082 8,471,183 8,640,607 8,813,419 8,989,688 9,169,481 9,352,871 9,539,928 9,730,727 9,925,342 10,123,848 10,326,325 10,532,852 Denton County 5,700,864 5,814,881 5,931,179 6,049,802 6,170,798 6,294,214 6,420,098 6,548,500 6,679,470 6,813,060 6,949,321 7,088,307 7,230,074 7,374,675 7,522,169 7,672,612 7,826,064 7,982,585 8,142,237 8,305,082 8,471,183 8,640,607 8,813,419 8,989,688 9,169,481 9,352,871 9,539,928 9,730,727 9,925,342 10,123,848 10,326,325 10,532,852 Trophy CLUB MUD 1 5,700,864 5,814,881 5,931,179 6,049,802 6,170,798 6,294,214 6,420,098 6,548,500 6,679,470 6,813,060 6,949,321 7,088,307 7,230,074 7,374,675 7,522,169 7,672,612 7,826,064 7,982,585 8,142,237 8,305,082 8,471,183 8,640,607 8,813,419 8,989,688 9,169,481 9,352,871 9,539,928 9,730,727 9,925,342 10,123,848 10,326,325 10,532,852 TAXABLE VALUE INCREMENT Trophy Club 111,782 225,799 342,097 460,720 581,716 705,132 831,016 959,418 1,090,388 1,223,978 1,360,239 1,499,225 1,640,992 1,785,593 1,933,087 2,083,530 2,236,982 2,393,503 2,553,155 2,716,000 2,882,101 3,051,525 3,224,337 3,400,606 3,580,399 3,763,789 3,950,846 4,141,645 4,336,260 4,534,766 4,737,243 4,943,770 Northwest ISD 111,782 225,799 342,097 460,720 581,716 705,132 831,016 959,418 1,090,388 1,223,978 1,360,239 1,499,225 1,640,992 1,785,593 1,933,087 2,083,530 2,236,982 2,393,503 2,553,155 2,716,000 2,882,101 3,051,525 3,224,337 3,400,606 3,580,399 3,763,789 3,950,846 4,141,645 4,336,260 4,534,766 4,737,243 4,943,770 Denton County 111,782 225,799 342,097 460,720 581,716 705,132 831,016 959,418 1,090,388 1,223,978 1,360,239 1,499,225 1,640,992 1,785,593 1,933,087 2,083,530 2,236,982 2,393,503 2,553,155 2,716,000 2,882,101 3,051,525 3,224,337 3,400,606 3,580,399 3,763,789 3,950,846 4,141,645 4,336,260 4,534,766 4,737,243 4,943,770 Trophy CLUB MUD 1 111,782 225,799 342,097 460,720 581,716 705,132 831,016 959,418 1,090,388 1,223,978 1,360,239 1,499,225 1,640,992 1,785,593 1,933,087 2,083,530 2,236,982 2,393,503 2,553,155 2,716,000 2,882,101 3,051,525 3,224,337 3,400,606 3,580,399 3,763,789 3,950,846 4,141,645 4,336,260 4,534,766 4,737,243 4,943,770 REVENUE A TAXABLE VALUE GROWTH Trophy Club 558 1,127 1,708 2,300 2,905 3,521 4,149 4,790 5,444 6,111 6,792 7,486 8,193 8,915 9,652 10,403 11,169 11,951 12,748 13,561 14,390 15,236 16,099 16,979 17,877 18,793 19,727 20,679 21,651 22,642 23,653 24,684 365,895 Trophy Club Northwest ISD 1,624 3,280 4,969 6,692 8,449 10,242 12,071 13,936 15,838 17,778 19,757 21,776 23,835 25,936 28,078 30,263 32,492 34,766 37,085 39,450 41,863 44,323 46,833 49,394 52,005 54,669 57,386 60,157 62,984 65,867 68,808 71,808 1,064,416 Northwest ISD Denton County 318 643 975 1,313 1,657 2,009 2,368 2,734 3,107 3,487 3,876 4,272 4,675 5,087 5,508 5,936 6,373 6,819 7,274 7,738 8,212 8,694 9,187 9,689 10,201 10,724 11,257 11,800 12,355 12,920 13,497 14,085 208,790 Denton County Trophy CLUB MUD 1 149 301 456 615 776 941 1,108 1,280 1,454 1,633 1,814 2,000 2,189 2,382 2,579 2,779 2,984 3,193 3,406 3,623 3,844 4,070 4,301 4,536 4,776 5,021 5,270 5,525 5,784 6,049 6,319 6,594 97,750 Trophy CLUB MUD 1 npv @ 6% SUBTOTAL A 525,809 2,649 5,352 8,108 10,920 13,787 16,712 19,696 22,739 25,843 29,010 32,239 35,533 38,893 42,320 45,816 49,382 53,019 56,729 60,512 64,372 68,309 72,324 76,420 80,598 84,859 89,206 93,639 98,161 102,774 107,479 112,278 117,172 1,736,851 REVENUE #1 - BLOCK A REAL PROPERTY TAX 0 0 5,745,000 11,490,000 11,719,800 11,954,196 12,193,280 12,437,146 12,685,888 12,939,606 13,198,398 13,462,366 13,731,614 14,006,246 14,286,371 14,572,098 14,863,540 15,160,811 15,464,027 15,773,308 16,088,774 16,410,549 16,738,760 17,073,536 17,415,006 17,763,306 18,118,573 18,480,944 18,850,563 19,227,574 19,612,126 20,004,368 BUSINESS PERSONAL PROPERTY 0 0 383,000 766,000 781,320 796,946 812,885 829,143 845,726 862,640 879,893 897,491 915,441 933,750 952,425 971,473 990,903 1,010,721 1,030,935 1,051,554 1,072,585 1,094,037 1,115,917 1,138,236 1,161,000 1,184,220 1,207,905 1,232,063 1,256,704 1,281,838 1,307,475 1,333,625 Trophy Club 0 0 30,597 61,194 62,418 63,666 64,940 66,239 67,563 68,915 70,293 71,699 73,133 74,595 76,087 77,609 79,161 80,744 82,359 84,007 85,687 87,400 89,148 90,931 92,750 94,605 96,497 98,427 100,396 102,403 104,452 106,541 2,404,457 Trophy Club Northwest ISD 0 0 89,009 178,018 181,579 185,210 188,915 192,693 196,547 200,478 204,487 208,577 212,748 217,003 221,344 225,770 230,286 234,891 239,589 244,381 249,269 254,254 259,339 264,526 269,816 275,213 280,717 286,331 292,058 297,899 303,857 309,934 6,994,741 Northwest ISD Denton County 0 0 17,460 34,919 35,617 36,330 37,056 37,798 38,553 39,325 40,111 40,913 41,732 42,566 43,417 44,286 45,172 46,075 46,996 47,936 48,895 49,873 50,870 51,888 52,926 53,984 55,064 56,165 57,288 58,434 59,603 60,795 1,372,048 Denton County Trophy CLUB MUD 1 0 0 8,174 16,348 16,675 17,009 17,349 17,696 18,050 18,411 18,779 19,155 19,538 19,928 20,327 20,734 21,148 21,571 22,003 22,443 22,892 23,349 23,816 24,293 24,779 25,274 25,780 26,295 26,821 27,358 27,905 28,463 642,360 Trophy CLUB MUD 1 npv @ 6% SUBTOTAL #1 4,220,902 0 0 145,240 290,480 296,290 302,215 308,260 314,425 320,713 327,128 333,670 340,344 347,150 354,093 361,175 368,399 375,767 383,282 390,948 398,767 406,742 414,877 423,174 431,638 440,271 449,076 458,058 467,219 476,563 486,094 495,816 505,733 11,413,606 REVENUE #2 - BLOCK B REAL PROPERTY TAX 0 0 24,724,300 37,086,450 49,448,600 50,437,572 51,446,323 52,475,250 53,524,755 54,595,250 55,687,155 56,800,898 57,936,916 59,095,654 60,277,567 61,483,119 62,712,781 63,967,037 65,246,378 66,551,305 67,882,331 69,239,978 70,624,777 72,037,273 73,478,018 74,947,579 76,446,530 77,975,461 79,534,970 81,125,670 82,748,183 84,403,147 BUSINESS PERSONAL PROPERTY 0 0 844,120 1,266,180 1,688,240 1,722,005 1,756,445 1,791,574 1,827,405 1,863,953 1,901,232 1,939,257 1,978,042 2,017,603 2,057,955 2,099,114 2,141,097 2,183,918 2,227,597 2,272,149 2,317,592 2,363,944 2,411,222 2,459,447 2,508,636 2,558,809 2,609,985 2,662,184 2,715,428 2,769,737 2,825,131 2,881,634 Trophy Club 0 0 127,663 191,495 255,326 260,433 265,641 270,954 276,373 281,901 287,539 293,290 299,155 305,138 311,241 317,466 323,815 330,292 336,898 343,636 350,508 357,518 364,669 371,962 379,401 386,989 394,729 402,624 410,676 418,890 427,268 435,813 9,779,304 Trophy Club Northwest ISD 0 0 371,381 557,072 742,763 757,618 772,770 788,226 803,990 820,070 836,471 853,201 870,265 887,670 905,423 923,532 942,003 960,843 980,059 999,661 1,019,654 1,040,047 1,060,848 1,082,065 1,103,706 1,125,780 1,148,296 1,171,262 1,194,687 1,218,581 1,242,952 1,267,811 28,448,707 Northwest ISD Denton County 0 0 72,848 109,272 145,696 148,610 151,582 154,614 157,706 160,860 164,077 167,359 170,706 174,120 177,603 181,155 184,778 188,473 192,243 196,088 200,009 204,010 208,090 212,252 216,497 220,827 225,243 229,748 234,343 239,030 243,810 248,687 5,580,334 Denton County Trophy CLUB MUD 1 0 0 34,106 51,159 68,211 69,576 70,967 72,387 73,834 75,311 76,817 78,353 79,921 81,519 83,149 84,812 86,509 88,239 90,004 91,804 93,640 95,512 97,423 99,371 101,359 103,386 105,453 107,563 109,714 111,908 114,146 116,429 2,612,580 Trophy CLUB MUD 1 npv @ 6% SUBTOTAL #2 17,054,735 0 0 605,998 908,997 1,211,996 1,236,236 1,260,961 1,286,180 1,311,904 1,338,142 1,364,905 1,392,203 1,420,047 1,448,448 1,477,417 1,506,965 1,537,104 1,567,846 1,599,203 1,631,187 1,663,811 1,697,087 1,731,029 1,765,650 1,800,963 1,836,982 1,873,722 1,911,196 1,949,420 1,988,408 2,028,177 2,068,740 46,420,925 30 YEAR - TOTAL REVENUE GENERATED OVERVIEW REAL PROPERTY TAX BUSINESS PERSONAL PROPERTY TAX Town Council Page 284 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 28 Financial Feasibility Analysis REVENUE #3 - BLOCK C REAL PROPERTY TAX 0 0 0 24,000,000 49,500,000 70,129,500 71,532,090 72,962,732 74,421,986 75,910,426 77,428,635 78,977,207 80,556,752 82,167,887 83,811,244 85,487,469 87,197,219 88,941,163 90,719,986 92,534,386 94,385,074 96,272,775 98,198,231 100,162,195 102,165,439 104,208,748 106,292,923 108,418,781 110,587,157 112,798,900 115,054,878 117,355,976 BUSINESS PERSONAL PROPERTY 0 0 0 800,000 1,406,475 1,875,300 1,912,806 1,951,062 1,990,083 2,029,885 2,070,483 2,111,892 2,154,130 2,197,213 2,241,157 2,285,980 2,331,700 2,378,334 2,425,901 2,474,419 2,523,907 2,574,385 2,625,873 2,678,390 2,731,958 2,786,597 2,842,329 2,899,176 2,957,159 3,016,302 3,076,628 3,138,161 Trophy Club 0 0 0 123,826 254,176 359,520 366,710 374,045 381,525 389,156 396,939 404,878 412,975 421,235 429,660 438,253 447,018 455,958 465,077 474,379 483,867 493,544 503,415 513,483 523,753 534,228 544,912 555,811 566,927 578,265 589,831 601,627 13,084,993 Northwest ISD 0 0 0 360,220 739,417 1,045,870 1,066,787 1,088,123 1,109,885 1,132,083 1,154,725 1,177,819 1,201,376 1,225,403 1,249,911 1,274,909 1,300,408 1,326,416 1,352,944 1,380,003 1,407,603 1,435,755 1,464,470 1,493,760 1,523,635 1,554,107 1,585,190 1,616,893 1,649,231 1,682,216 1,715,860 1,750,177 38,065,195 Denton County 0 0 0 70,659 145,040 205,152 209,255 213,440 217,709 222,063 226,504 231,034 235,655 240,368 245,175 250,079 255,080 260,182 265,386 270,693 276,107 281,629 287,262 293,007 298,867 304,845 310,942 317,160 323,504 329,974 336,573 343,305 7,466,648 Trophy CLUB MUD 1 0 0 0 33,081 67,904 96,047 97,968 99,928 101,926 103,965 106,044 108,165 110,328 112,535 114,785 117,081 119,423 121,811 124,247 126,732 129,267 131,852 134,489 137,179 139,923 142,721 145,576 148,487 151,457 154,486 157,576 160,727 3,495,708 npv @ 6% SUBTOTAL #3 21,964,143 0 0 0 587,786 1,206,536 1,706,589 1,740,720 1,775,535 1,811,046 1,847,266 1,884,212 1,921,896 1,960,334 1,999,541 2,039,531 2,080,322 2,121,928 2,164,367 2,207,654 2,251,807 2,296,844 2,342,780 2,389,636 2,437,429 2,486,177 2,535,901 2,586,619 2,638,351 2,691,118 2,744,941 2,799,840 2,855,836 62,112,544 REVENUE #4 - BLOCK D REAL PROPERTY TAX 0 0 0 0 2,558,100 3,837,150 5,116,200 5,218,524 5,322,894 5,429,352 5,537,939 5,648,698 5,761,672 5,876,906 5,994,444 6,114,333 6,236,619 6,361,352 6,488,579 6,618,350 6,750,717 6,885,732 7,023,446 7,163,915 7,307,193 7,453,337 7,602,404 7,754,452 7,909,541 8,067,732 8,229,087 8,393,668 BUSINESS PERSONAL PROPERTY 0 0 0 0 170,540 255,810 341,080 347,902 354,860 361,957 369,196 376,580 384,111 391,794 399,630 407,622 415,775 424,090 432,572 441,223 450,048 459,049 468,230 477,594 487,146 496,889 506,827 516,963 527,303 537,849 548,606 559,578 Trophy Club 0 0 0 0 13,624 20,436 27,248 27,793 28,349 28,916 29,494 30,084 30,686 31,300 31,926 32,564 33,215 33,880 34,557 35,248 35,953 36,672 37,406 38,154 38,917 39,695 40,489 41,299 42,125 42,968 43,827 44,704 951,532 Northwest ISD 0 0 0 0 39,633 59,450 79,267 80,852 82,469 84,119 85,801 87,517 89,268 91,053 92,874 94,731 96,626 98,559 100,530 102,540 104,591 106,683 108,817 110,993 113,213 115,477 117,787 120,142 122,545 124,996 127,496 130,046 2,768,075 Denton County 0 0 0 0 7,774 11,661 15,549 15,860 16,177 16,500 16,830 17,167 17,510 17,860 18,218 18,582 18,954 19,333 19,719 20,114 20,516 20,926 21,345 21,772 22,207 22,651 23,104 23,566 24,038 24,519 25,009 25,509 542,970 Trophy CLUB MUD 1 0 0 0 0 3,640 5,460 7,279 7,425 7,574 7,725 7,880 8,037 8,198 8,362 8,529 8,700 8,874 9,051 9,232 9,417 9,605 9,797 9,993 10,193 10,397 10,605 10,817 11,033 11,254 11,479 11,709 11,943 254,206 npv @ 6% SUBTOTAL #4 1,557,764 0 0 0 0 64,672 97,007 129,343 131,930 134,569 137,260 140,005 142,805 145,661 148,575 151,546 154,577 157,669 160,822 164,038 167,319 170,666 174,079 177,561 181,112 184,734 188,429 192,197 196,041 199,962 203,961 208,040 212,201 4,516,782 REVENUE #5 - BLOCK E REAL PROPERTY TAX 0 0 0 0 4,755,000 7,132,500 9,510,000 9,700,200 9,894,204 10,092,088 10,293,930 10,499,808 10,709,805 10,924,001 11,142,481 11,365,330 11,592,637 11,824,490 12,060,979 12,302,199 12,548,243 12,799,208 13,055,192 13,316,296 13,582,622 13,854,274 14,131,360 14,413,987 14,702,267 14,996,312 15,296,238 15,602,163 BUSINESS PERSONAL PROPERTY 0 0 0 0 297,000 445,500 594,000 605,880 617,998 630,358 642,965 655,824 668,940 682,319 695,966 709,885 724,083 738,564 753,336 768,402 783,770 799,446 815,435 831,743 848,378 865,346 882,653 900,306 918,312 936,678 955,412 974,520 Trophy Club 0 0 0 0 25,225 37,837 50,449 51,458 52,487 53,537 54,608 55,700 56,814 57,950 59,109 60,292 61,497 62,727 63,982 65,262 66,567 67,898 69,256 70,641 72,054 73,495 74,965 76,464 77,994 79,553 81,144 82,767 1,761,734 Northwest ISD 0 0 0 0 73,380 110,070 146,761 149,696 152,690 155,744 158,858 162,036 165,276 168,582 171,953 175,393 178,900 182,478 186,128 189,850 193,647 197,520 201,471 205,500 209,610 213,802 218,079 222,440 226,889 231,427 236,055 240,776 5,125,013 Denton County 0 0 0 0 14,394 21,591 28,788 29,363 29,951 30,550 31,161 31,784 32,420 33,068 33,729 34,404 35,092 35,794 36,510 37,240 37,985 38,744 39,519 40,310 41,116 41,938 42,777 43,633 44,505 45,395 46,303 47,229 1,005,293 Trophy CLUB MUD 1 0 0 0 0 6,739 10,108 13,478 13,747 14,022 14,303 14,589 14,880 15,178 15,482 15,791 16,107 16,429 16,758 17,093 17,435 17,784 18,139 18,502 18,872 19,250 19,635 20,027 20,428 20,836 21,253 21,678 22,112 470,654 npv @ 6% SUBTOTAL #5 2,884,157 0 0 0 0 119,738 179,606 239,475 244,265 249,150 254,133 259,216 264,400 269,688 275,082 280,583 286,195 291,919 297,757 303,713 309,787 315,983 322,302 328,748 335,323 342,030 348,870 355,848 362,965 370,224 377,628 385,181 392,885 8,362,695 REVENUE #6 - SALES SALES TAX 0 0 349,386 581,529 834,630 995,418 1,072,790 1,094,246 1,116,131 1,138,453 1,161,222 1,184,447 1,208,136 1,232,298 1,256,944 1,282,083 1,307,725 1,333,879 1,360,557 1,387,768 1,415,523 1,443,834 1,472,711 1,502,165 1,532,208 1,562,852 1,594,109 1,625,991 1,658,511 1,691,682 1,725,515 1,760,025 38,882,770 SUBTOTAL #6 14,031,666 0 0 349,386 581,529 834,630 995,418 1,072,790 1,094,246 1,116,131 1,138,453 1,161,222 1,184,447 1,208,136 1,232,298 1,256,944 1,282,083 1,307,725 1,333,879 1,360,557 1,387,768 1,415,523 1,443,834 1,472,711 1,502,165 1,532,208 1,562,852 1,594,109 1,625,991 1,658,511 1,691,682 1,725,515 1,760,025 38,882,770 REVENUE #7 - HOT HOTEL OCCUPANCY TAX 0 0 0 465,010 474,310 483,796 493,472 503,342 513,409 523,677 534,150 544,833 555,730 566,845 578,181 589,745 601,540 613,571 625,842 638,359 651,126 664,149 677,432 690,980 704,800 718,896 733,274 747,939 762,898 778,156 793,719 809,594 18,038,777 SUBTOTAL #7 6,561,745 0 0 0 465,010 474,310 483,796 493,472 503,342 513,409 523,677 534,150 544,833 555,730 566,845 578,181 589,745 601,540 613,571 625,842 638,359 651,126 664,149 677,432 690,980 704,800 718,896 733,274 747,939 762,898 778,156 793,719 809,594 18,038,777 REVENUE A, 1, 2, 3, 4, 5, 6, 7 2,649 5,352 1,108,732 2,844,722 4,221,959 5,017,581 5,264,718 5,372,661 5,482,764 5,595,069 5,709,619 5,826,461 5,945,640 6,067,202 6,191,195 6,317,668 6,446,671 6,578,254 6,712,468 6,849,367 6,989,004 7,131,433 7,276,711 7,424,895 7,576,042 7,730,212 7,887,466 8,047,864 8,211,471 8,378,350 8,548,566 8,722,187 191,484,950 Running Total 2,649 8,001 1,116,733 3,961,455 8,183,414 13,200,995 18,465,713 23,838,374 29,321,138 34,916,206 40,625,826 46,452,287 52,397,926 58,465,128 64,656,323 70,973,991 77,420,662 83,998,916 90,711,384 97,560,751 104,549,755 111,681,188 118,957,899 126,382,793 133,958,835 141,689,047 149,576,513 157,624,377 165,835,848 174,214,197 182,762,763 191,484,950 NET PRESENT VALUE @ 6%68,800,921 GROSS 191,484,950 DISTRICT BREAKDOWN 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 Trophy Club $30,749,087.13 558 1,127 509,354 1,425,355 1,922,614 2,224,628 2,345,401 2,392,867 2,441,282 2,490,666 2,541,037 2,592,416 2,644,823 2,698,277 2,752,801 2,808,415 2,865,141 2,923,002 2,982,021 3,042,219 3,103,622 3,166,252 3,230,135 3,295,296 3,361,760 3,429,554 3,498,703 3,569,235 3,641,178 3,714,559 3,789,409 3,865,755 85,269,462 Northwest ISD $29,543,601.68 1,624 3,280 465,359 1,102,002 1,785,221 2,168,461 2,266,570 2,313,525 2,361,419 2,410,271 2,460,100 2,510,926 2,562,768 2,615,647 2,669,584 2,724,599 2,780,714 2,837,952 2,896,335 2,955,885 3,016,627 3,078,583 3,141,778 3,206,237 3,271,986 3,339,049 3,407,454 3,477,226 3,548,395 3,620,986 3,695,029 3,770,554 82,466,146 Denton County $5,795,102.05 318 643 91,282 216,162 350,179 425,353 444,597 453,808 463,202 472,785 482,559 492,529 502,698 513,070 523,650 534,442 545,449 556,676 568,128 579,809 591,724 603,877 616,273 628,917 641,814 654,969 668,386 682,073 696,033 710,272 724,796 739,610 16,176,082 Trophy CLUB MUD 1 $2,713,129.80 149 301 42,736 101,202 163,945 199,140 208,150 212,462 216,860 221,347 225,923 230,590 235,351 240,207 245,161 250,213 255,366 260,623 265,984 271,453 277,031 282,721 288,524 294,444 300,482 306,641 312,923 319,330 325,866 332,532 339,332 346,268 7,573,259 TOTALS 2,649 5,352 1,108,732 2,844,722 4,221,959 5,017,581 5,264,718 5,372,661 5,482,764 5,595,069 5,709,619 5,826,461 5,945,640 6,067,202 6,191,195 6,317,668 6,446,671 6,578,254 6,712,468 6,849,367 6,989,004 7,131,433 7,276,711 7,424,895 7,576,042 7,730,212 7,887,466 8,047,864 8,211,471 8,378,350 8,548,566 8,722,187 100,773,565 Town Council Page 285 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 29 Projects Cost Estimates: All project costs listed in the project plan shall be considered estimates and shall not be considered a cap on expenditures. Length of TIRZ #2 in Years: The TIRZ has a 32-year term and is scheduled to end on December 31, 2046. Powers and Duties of Board of Directors: The Board shall have all powers granted to it by Chapter 311 of the Texas Tax Code, including powers of a municipality under Chapter 380, Local Government Code. The Board shall not be authorized to: issue bonds; impose taxes or fees; exercise the power of eminent domain; or give final approval to the Zone’s project and financing plan. Financial Feasibility Analysis Town Council Page 286 of 522 Meeting Date: Monday, April 7, 2014 Preliminary Project and Financing Plan, TIRZ #2 30 Exhibit A Account Number Owner Name Owner Address Legal 1 Acres SQ FT Land Value AG Exemption Taxable Value 68347 JSB Properties LP 6211 Raintree Ct Dallas, TX 75254-8602 A0823a C. Medlin, Tr 19, 3.4096 Acres, Old Dcad Tr #3b 3.4096 148522.18 $594,088 0 $594,088 171495 JSB Properties LP 6212 Raintree Ct Dallas, TX 75254-8602 A0823a C. Medlin, Tr 21, Acres 4.3073 4.3073 187625.99 $750,504 0 $754,852 171494 JSB Properties LP 6213 Raintree Ct Dallas, TX 75254-8602 A0823a C. Medlin, Tr 21a, 5.612 Acres 5.612 244458.72 $977,836 0 $977,836 151108 JSB Properties LP 12222 Merit Dr Ste 120 Dallas, TX 75251-2228 A0823a C. Medlin, Tr 22, 13.055 Acres, Old Dcad Tr #4b 13.055 568675.8 $2,274,700 0 $2,274,700 171493 JSB Properties LP 6213 Raintree Ct Dallas, TX 75254-8602 A0823a C. Medlin, Tr 1a, Acres 2.077 2.077 90474.12 $361,896 $499,426 335139 Trophy Club Municipal 100 Municipal Drive Trophy Club, TX 76262 Municipal Utlity District No 1 Complex Blk 1 Lot 1 0.936 40772.16 $163,089 0 $0 335140 Trophy Club Municipal 100 Municipal Drive Trophy Club, TX 76262 Municipal Utlity District No 1 Complex Blk 1 Lot 2 1.287 56061.72 $224,247 0 $0 185201 Holley, Russell W Trs Of Cyrus & Shirley C Holley 1991 Irrev Trst 692 Garden Court Southlake TX, 76092-3502 The Village At Trophy Club Lot 3 1.6010101 69740 $488,180 0 $488,180 335141 Trophy Club Municipal 100 Municipal Drive Trophy Club, TX 76262 Municipal Utlity District No 1 Complex Blk 1 Lot 3 3.044 132596.64 $530,387 0 $0 Trophy Club TIRZ #2 Parcels Town Council Page 287 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1076-T Name: Status:Type:Agenda Item Regular Session File created:In control:4/1/2014 Town Council On agenda:Final action:4/7/2014 Title:Consider and take appropriate action regarding a Resolution appointing citizens to serve on the Board of Directors for the newly created Reinvestment Zone Number Two, Town of Trophy Club, Texas; appointing a member of the Board of Directors of the Reinvestment Zone Number Two to serve as a chairperson for the board and designating staggered terms of service; providing for the appointment of a Chairperson; and providing an effective date. Attachments:Staff Report - TIRZ #2 Board Appointments.pdf RES 2014-08 Appointing Citizens to the TIRZ #2 Board.pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding a Resolution appointing citizens to serve on the Board of Directors for the newly created Reinvestment Zone Number Two, Town of Trophy Club, Texas; appointing a member of the Board of Directors of the Reinvestment Zone Number Two to serve as a chairperson for the board and designating staggered terms of service; providing for the appointment of a Chairperson; and providing an effective date. Town Council Page 288 of 522 Meeting Date: Monday, April 7, 2014 To: Mayor and Town Council From: Stephen Seidel, Assistant Town Manager CC: Mike Slye, Town Manager Tammy Ard, Town Secretary Re: TIRZ #2 Board Appointments Town Council Meeting, Monday, April 7, 2014 Agenda Item: Consider and take appropriate action regarding a Resolution appointing citizens to serve on the Board of Directors for the newly created Reinvestment Zone Number Two, Town of Trophy Club, Texas; appointing a member of the Board of Directors of the Reinvestment Zone Number Two to serve as a chairperson for the board and designating staggered terms of service; providing for the appointment of a Chairperson; and providing an effective date. Explanation: The Council will consider an ordinance creating a Tax Increment Reinvestment Zone #2 at the April 7, 2014 Council meeting. The TIRZ #2 creation ordinance states the Council will appoint a TIRZ Board as well as the Board’s Chair. Town staff recommends appointing existing TIRZ #1 Board members as the TIRZ #2 Board, with the exception of replacing a Tarrant County official for a Denton County official. There is a level of expertise needed to understand how TIRZ’s operate, a continuity of economic development incentive direction, and efficiency by having the same individuals serve both TIRZ’s. The Council needs to designate staggered terms for the Board members as well as name the Chair. Below is the recommendation for the Board: 1. Denton County Official 2. *David Brod, EDC-4B Director & TIRZ #1 Chair 3. Darryl Howard 4. Jared King 5. Adam Broyles *EDC-4B has a permanent representative on each TIRZ. Town staff has met with the Trophy Club Municipal Utility District No. 1 regarding their participation in TIRZ #2. David Pettit, the Town’s TIRZ consultant, will present to the Trophy Club Municipal Utility District No. 1 Board at their April meeting to discuss how their Town Council Page 289 of 522 Meeting Date: Monday, April 7, 2014 participation would impact the project and Trophy Club Municipal Utility District No. 1. If Trophy Club Municipal Utility District No. 1 desires to participate and takes official action, the Town Council will need amend the Board Resolution to appoint an additional member to the TIRZ #2 Board as Trophy Club Municipal Utility District No. 1 representative. Attachments: • Resolution 2014-08 Town Council Goals: Goal #1: Safe and secure community. Maintain low crime rate Increase citizen awareness and involvement in crime prevention Provide superior Emergency Services Improve data security Goal #2: Business-Friendly Economic Development Create effective working relationships with businesses and developers Retain / Develop existing businesses Promote new commercial opportunities Goal # 3: Strong Partnerships and Community Involvement Create a positive regional identity Foster a well informed community Forge collaborative relationships with other governmental and public entities Support citizen volunteer opportunities Promote recreational / active lifestyle opportunities for all ages Goal #4: Healthy, Picturesque, and Environmentally Sound Promote recreational / active lifestyle opportunities for all ages Maintain neat and tidy appearance Improve property maintenance standards and code enforcement Develop / Enhance environmental and sustainability standards and programs Goal #5: Financial and Operational Stewardship Develop, recognize, and retain quality staff Implement strong financial management standards Improve effectiveness and efficiency of operational processes Maintain / Improve infrastructure and assets Provide cost-effective services Deliver responsible customer service Recommendation: Staff recommends approval of the resolution appointing citizens of TIRZ #1 Board members as TIRZ #2 Board members, while replacing Tarrant County representative for a Denton County representative. Town Council Page 290 of 522 Meeting Date: Monday, April 7, 2014 TOWN OF TROPHY CLUB, TEXAS RESOLUTION NO. 2014-08 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, APPOINTING CITIZENS RESIDING WITHIN THE TOWN TO SERVE AS DIRECTORS OF THE NEWLY CREATED REINVESTMENT ZONE NO. TWO; SETTING FORTH THE NAMES OF QUALIFIED PERSONS APPOINTED TO THE BOARD, DESIGNATING INITIAL ONE AND TWO YEAR TERMS OF OFFICE AND THEREAFTER DESIGNATING TWO YEAR STAGGERED TERMS OF OFFICE FOR ALL MEMBERS; ACKNOWLEDGING THE APPOINTMENT OF A DIRECTOR TO BE NAMED BY DENTON COUNTY AT A LATER DATE AND PROVIDING THAT DIRECTOR’S TERM OF OFFICE SHALL EXPIRE IN 2015; APPOINTING A MEMBER OF THE BOARD OF DIRECTORS OF REINVESTMENT ZONE NO. TWO, TOWN OF TROPHY CLUB, TEXAS TO SERVE AS CHAIRPERSON FOR THE BOARD AND DESIGNATING A TERM OF SERVICE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town of Trophy Club, Texas, benefits by having its citizens involved in local government through service on Boards and Commissions; and WHEREAS, the Trophy Club Town Council is charged with the responsibility of making appointments to the Boards, Commissions and Corporations serving the Town whose terms are expiring and to replace members who have resigned; and WHEREAS, pursuant to Ordinance No. 2014-09 the Town has determined it appropriate and beneficial to create Reinvestment Zone Number Two within the Town of Trophy Club; and WHEREAS, State law provides that Directors shall be appointed for staggered one (1) and two (2) year terms, that one (1) member shall be appointed by the Town Council to serve as Chairman for a term of one (1) year beginning on January 1 of the following year, and that the Board of Directors may appoint a Vice-Chair and other officers that the Board determines appropriate; and WHEREAS, the Town Council has determined it appropriate to utilize the knowledge and expertise of those Trophy Club residents already serving as Directors for Reinvestment Zone Number One by appointing those same residents to serve as Directors for Reinvestment Zone Number Two; and NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: Section 1. That the foregoing recitals are incorporated herein as if written word for word. Town Council Page 291 of 522 Meeting Date: Monday, April 7, 2014 Section 2. That the Town Council hereby finds that the following individuals recommended to the Board reside within the boundaries of the Town and hereby appoints the following four (4) citizens of the Town to serve as the Board of Directors for the Reinvestment Zone No. Two with respective terms of service ending on September 30 of the year specified below. One Director will be named by Denton County at a later date and will have a term expiring in 2015: Reinvestment Zone No. 2, Town of Trophy Club, Texas 1. _______**(2015) Denton County Official 4. Jared King (2015) 2. *David Brod (2016) (EDC-4B) 5. Adam Broyles (2016) 3. Darryl Howard (2016) *Board Chair - appointment expires December 31, 2014 **To be appointed at a later date – appointee to be named by Denton County Section 3. That this Resolution shall become effective from and after its date of passage in accordance with the law. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, on this 7th day of April, 2014. Connie White, Mayor Town of Trophy Club, Texas ATTEST: APPROVED AS TO FORM: Tammy Ard, Town Secretary Patricia A. Adams, Town Attorney Town of Trophy Club, Texas Town of Trophy Club, Texas Town Council Page 292 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1029-T Name: Status:Type:Agenda Item Regular Session File created:In control:3/20/2014 Town Council On agenda:Final action:4/7/2014 Title:Consider and take appropriate action regarding an Ordinance authorizing the issuance of Town Of Trophy Club, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2014 in the approximate aggregate principal amount of $2,500,000 for the purpose of paying contractual obligations for the purchase of land for a joint police and town hall facility, facility design costs, and various costs related thereto; levying a tax, and providing for the security for and payment of such certificates; approving the official statement; enacting other provisions relating to the subject; and declaring an effective date. Attachments:Staff Report - $2 5M Certificates of Obligation Issue.pdf ORD 2014-08 $2.5M Certificates of Obligation Issue.pdf Preliminary Official Statement & Official Notice of Sale.pdf Standard & Poor's Report - Trophy Club.pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding an Ordinance authorizing the issuance of Town Of Trophy Club, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2014 in the approximate aggregate principal amount of $2,500,000 for the purpose of paying contractual obligations for the purchase of land for a joint police and town hall facility, facility design costs, and various costs related thereto; levying a tax, and providing for the security for and payment of such certificates; approving the official statement; enacting other provisions relating to the subject; and declaring an effective date. Town Council Page 293 of 522 Meeting Date: Monday, April 7, 2014 To: Mayor and Town Council From: Stephen Seidel, Assistant Town Manager CC: Mike Slye, Town Manager Tammy Ard, Town Secretary Re: $2.5 Million Certificate of Obligation Town Council Meeting, April 7, 2014 Agenda Item: Consider and take appropriate action regarding an Ordinance authorizing the issuance of Town of Trophy Club, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2014 in the approximate aggregate principal amount of $2,500,000 for the purpose of paying contractual obligations for the purchase of land for a joint police and town hall facility, facility design costs, and various costs related thereto; levying a tax, and providing for the security for and payment of such certificates; approving the official statement; enacting other provisions relating to the subject; and declaring an effective date. Explanation: The Town Council took action to issue a Notice of Intention $2.5 million in Certificates of Obligation Bonds at their February 26, 2014 meeting. The $2.5 million will be utilized to purchase property for a joint police and town hall facility as well as continue engineering, architecture, and other land preparation items. As a part of the debt issue, the Town was rerated by Standard & Poor and received an upgraded bond rating of AA+. The Town’s rating is due to strong financial conditions, budget flexibility, strong management conditions as well as several other factors. The Town Council and staff have collaborated over the past 3-4 years to greatly enhance the Town strategy, planning and development, and especially financial management. The AA+ rating further cements the work and leadership by the Council and staff. The Ordinance will have several blank areas because the bonds will not be priced until April 7th. We will not have that information until the day of the sale based upon market conditions, and is standard procedure for competitive sales. Once the bonds have priced, staff will coordinate with Bond Counsel and the Financial Advisor to fill in the bond ordinance. At the point the Council decides to approve the ordinance, there will be paperwork to complete to finalize the sale. Additionally, there is a date of “March 15, 2014” that the bonds will be dated. This is not a typo and refers to interest that will begin on March 15, 2015. The Town typically schedules bond payments during March and September of each year. Town Council Page 294 of 522 Meeting Date: Monday, April 7, 2014 Attachments: • Ordinance 2014-08 • Preliminary Official Statement (POS) & Official Notice of Sale (NOS) • Standard &Poor’s Report – March 27, 2014 Town Council Goals: Goal #1: Safe and secure community. Maintain low crime rate Increase citizen awareness and involvement in crime prevention Provide superior Emergency Services Improve data security Goal #2: Business-Friendly Economic Development Create effective working relationships with businesses and developers Retain / Develop existing businesses Promote new commercial opportunities Goal # 3: Strong Partnerships and Community Involvement Create a positive regional identity Foster a well informed community Forge collaborative relationships with other governmental and public entities Support citizen volunteer opportunities Promote recreational / active lifestyle opportunities for all ages Goal #4: Healthy, Picturesque, and Environmentally Sound Promote recreational / active lifestyle opportunities for all ages Maintain neat and tidy appearance Improve property maintenance standards and code enforcement Develop / Enhance environmental and sustainability standards and programs Goal #5: Financial and Operational Stewardship Develop, recognize, and retain quality staff Implement strong financial management standards Improve effectiveness and efficiency of operational processes Maintain / Improve infrastructure and assets Provide cost-effective services Deliver responsible customer service Recommendation: Staff recommends approval of the ordinance authorizing the issuance of Combination Tax and Revenue Certificates of Obligation, Series 2014 in the approximate aggregate principal amount of $2,500,000. Town Council Page 295 of 522 Meeting Date: Monday, April 7, 2014 ORDINANCE 2014-08 Relating to $__________ TOWN OF TROPHY CLUB, TEXAS COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION SERIES 2014 Adopted: April 7, 2014 Dated: March 15, 2014 Town Council Page 296 of 522 Meeting Date: Monday, April 7, 2014 TABLE OF CONTENTS Page ARTICLE I DEFINITIONS AND OTHER PRELIMINARY MATTERS Section 1.01. Definitions................................................................................................................2 Section 1.02. Findings....................................................................................................................4 Section 1.03. Table of Contents, Titles, and Headings ..................................................................4 Section 1.04. Interpretation ............................................................................................................5 ARTICLE II SECURITY FOR THE CERTIFICATES; INTEREST AND SINKING FUND Section 2.01. Payment of the Certificates ......................................................................................5 Section 2.02. Interest and Sinking Fund ........................................................................................6 ARTICLE III AUTHORIZATION; GENERAL TERMS AND PROVISIONS REGARDING THE CERTIFICATES Section 3.01. Authorization ...........................................................................................................7 Section 3.02. Date, Denomination, Maturities, and Interest ..........................................................7 Section 3.03. Medium, Method, and Place of Payment .................................................................8 Section 3.04. Execution and Registration of Certificates ..............................................................9 Section 3.05. Ownership ..............................................................................................................10 Section 3.06. Registration, Transfer, and Exchange ....................................................................10 Section 3.07. Cancellation ...........................................................................................................11 Section 3.08. Temporary Certificates ..........................................................................................11 Section 3.09. Replacement Certificates .......................................................................................12 Section 3.10. Book-Entry-Only System.......................................................................................13 Section 3.11. Successor Securities Depository; Transfer Outside Book-Entry-Only System .....14 Section 3.12. Payments to Cede & Co .........................................................................................14 ARTICLE IV REDEMPTION OF CERTIFICATES BEFORE MATURITY Section 4.01. Limitation on Redemption .....................................................................................15 Section 4.02. Optional Redemption .............................................................................................15 Section 4.03. Mandatory Sinking Fund Redemption ...................................................................15 Section 4.04. Partial Redemption.................................................................................................16 Section 4.05. Notice of Redemption to Owners ..........................................................................17 Section 4.06. Payment Upon Redemption ...................................................................................17 Town Council Page 297 of 522 Meeting Date: Monday, April 7, 2014 Section 4.07. Effect of Redemption .............................................................................................17 Section 4.08. Conditional Notice of Redemption ........................................................................18 Section 4.09. Lapse of Payment ...................................................................................................18 ARTICLE V PAYING AGENT/REGISTRAR Section 5.01. Appointment of Initial Paying Agent/Registrar .....................................................18 Section 5.02. Qualifications .........................................................................................................18 Section 5.03. Maintaining Paying Agent/Registrar .....................................................................18 Section 5.04. Termination ............................................................................................................19 Section 5.05. Notice of Change to Owners ..................................................................................19 Section 5.06. Agreement to Perform Duties and Functions.........................................................19 Section 5.07. Delivery of Records to Successor ..........................................................................19 ARTICLE VI FORM OF THE CERTIFICATES Section 6.01. Form Generally ......................................................................................................19 Section 6.02. Form of the Certificates .........................................................................................20 Section 6.03. CUSIP Registration ................................................................................................26 Section 6.04. Legal Opinion ........................................................................................................27 Section 6.05. Statement Insurance ...............................................................................................27 ARTICLE VII SALE AND DELIVERY OF CERTIFICATES; DEPOSIT OF PROCEEDS; FLOW OF FUNDS Section 7.01. Sale of Certificates; Official Statement .................................................................27 Section 7.02. Control and Delivery of Certificates ......................................................................28 Section 7.03. Deposit of Proceeds ...............................................................................................28 ARTICLE VIII INVESTMENTS Section 8.01. Investments ............................................................................................................29 Section 8.02. Investment Income .................................................................................................29 ARTICLE IX PARTICULAR REPRESENTATIONS AND COVENANTS Section 9.01. Payment of the Certificates ....................................................................................29 Section 9.02. Other Representations and Covenants ...................................................................29 Town Council Page 298 of 522 Meeting Date: Monday, April 7, 2014 Section 9.03. Provisions Concerning Federal Income Tax Exclusion .........................................30 Section 9.04. No Private Use or Payment and No Private Loan Financing.................................30 Section 9.05. No Federal Guaranty ..............................................................................................31 Section 9.06. Certificates are not Hedge Certificates ..................................................................31 Section 9.07. No-Arbitrage Covenant ..........................................................................................31 Section 9.08. Arbitrage Rebate ....................................................................................................31 Section 9.09. Information Reporting ...........................................................................................32 Section 9.10. Continuing Obligation ...........................................................................................32 Section 9.11. Qualified Tax-Exempt Obligations ........................................................................32 ARTICLE X DEFAULT AND REMEDIES Section 10.01. Events of Default ...................................................................................................32 Section 10.02. Remedies for Default .............................................................................................33 Section 10.03. Remedies Not Exclusive ........................................................................................33 ARTICLE XI DISCHARGE Section 11.01. Discharge ...............................................................................................................33 ARTICLE XII CONTINUING DISCLOSURE UNDERTAKING Section 12.01. Annual Reports ......................................................................................................34 Section 12.02. Material Event Notices ..........................................................................................34 Section 12.03. Limitations, Disclaimers and Amendments ...........................................................35 ARTICLE XIII AMENDMENTS Section 13.01. Amendments ..........................................................................................................37 ARTICLE XIV MISCELLANEOUS Section 14.01. Changes to Ordinance ............................................................................................37 Section 14.02. Partial Invalidity.....................................................................................................37 Section 14.03. No Personal Liability .............................................................................................38 Town Council Page 299 of 522 Meeting Date: Monday, April 7, 2014 ARTICLE XV EFFECTIVENESS Section 15.01. Effectiveness ..........................................................................................................38 EXHIBIT A - Description of Annual Disclosure of Financial Information Town Council Page 300 of 522 Meeting Date: Monday, April 7, 2014 TOWN OF TROPHY CLUB, TEXAS ORDINANCE NO. 2014-08 AN ORDINANCE AUTHORIZING THE ISSUANCE OF $__________ TOWN OF TROPHY CLUB, TEXAS, COMBINATION TAX AND REVENUE CERTIFICATES OF OBLIGATION, SERIES 2014; LEVYING A TAX, AND PROVIDING FOR THE SECURITY FOR AND PAYMENT OF SAID CERTIFICATES; APPROVING THE OFFICIAL STATEMENT; ENACTING OTHER PROVISIONS RELATING TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, under the provisions of the Texas Local Government Code, Chapter 271, Subchapter C, as amended, the Town of Trophy Club, Texas (the “Town”), is authorized to issue certificates of obligation for the purposes specified in this Ordinance and for the payment of all or a portion of the contractual obligations for professional services, including that of engineers, attorneys, and financial advisors in connection therewith, and to sell the same for cash as herein provided; and WHEREAS, the Town is authorized to provide that such obligations will be payable from and secured by the levy of a direct and continuing ad valorem tax against all taxable property within the Town, in combination with all or a part of certain revenues of the Town’s municipal drainage utility system (the “System”) remaining after payment of any obligations of the Town payable in whole or in part from a lien on or pledge of such revenues that would be superior to the obligations to be authorized herein as authorized by Chapter 1502, Texas Government Code; and WHEREAS, the Town Council has found and determined that it is necessary and in the best interests of the Town and its citizens that it issue such certificates of obligation authorized by this Ordinance; and WHEREAS, pursuant to a Resolution No. 2014-07 heretofor passed by this governing body, notice of intention (the “Notice of Intention”) to issue certificates of obligation of the Town payable as provided in this Ordinance was published in a newspaper of general circulation in the Town in accordance with the requirements of law, such certificates of obligation to be issued for the purpose of paying contractual obligations to be incurred for the purposes set forth in Section 3.01 hereof; and WHEREAS, the Notice of Intention stated that the Town Council intended to pass an ordinance authorizing the issuance of the Certificates at its Town Council meeting held on the date of adoption of this Ordinance; and WHEREAS, no petition of any kind has been filed with the Town Secretary, any member of the Town Council or any other official of the Town, protesting the issuance of such certificates of obligation; and Town Council Page 301 of 522 Meeting Date: Monday, April 7, 2014 WHEREAS, this Town Council is now authorized and empowered to proceed with the issuance of said certificates of obligation and to sell the same for cash; and WHEREAS, the meeting at which this Ordinance is considered is open to the public as required by law, and public notice of the time, place, and purpose of said meeting was given as required by Chapter 551, Texas Government Code, as amended; therefore, NOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, THAT: ARTICLE I DEFINITIONS AND OTHER PRELIMINARY MATTERS Section 1.01. Definitions Unless otherwise expressly provided or unless the context clearly requires otherwise in this Ordinance, the following terms shall have the meanings specified below: a) “Business Day” means a day that is not a Saturday, Sunday, legal holiday or other day on which banking institutions in the city where the Designated Payment/Transfer Office is located are required or authorized by law or executive order to close. b) “Certificate” means any of the Certificates. c) “Certificate Date” means the date designated as the initial date of the Certificates by Section 3.02(a) of this Ordinance. d) “Certificates” means the certificates of obligation authorized to be issued by Section 3.01 of this Ordinance and designated as “Town of Trophy Club, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2014. e) “Closing Date” means the date of the initial delivery of and payment for the Certificates. f) “Code” means the Internal Revenue Code of 1986, as amended, including applicable regulations, published rulings, and court decisions. g) “Designated Payment/Transfer Office” means (i) with respect to the initial Paying Agent/Registrar named herein, its office in Dallas, Texas, or at such other location designated by the Paying Agent/Registrar and (ii) with respect to any successor Paying Agent/Registrar, the office of such successor designated and located as may be agreed upon by the Town and such successor. h) “DTC” means The Depository Trust Company of New York, New York, or any successor securities depository. Town Council Page 302 of 522 Meeting Date: Monday, April 7, 2014 i) “DTC Participant” means brokers and dealers, banks, trust companies, clearing corporations and certain other organizations on whose behalf DTC was created to hold securities to facilitate the clearance and settlement of securities transactions among DTC Participants. j) “EMMA” means the Electronic Municipal Market Access System. k) “Event of Default” means any event of default as defined in Section 10.01 of this Ordinance. l) “Fiscal Year” means such fiscal year as shall from time to time be set by the Town Council. m) “Initial Certificate” means the initial certificate authorized by Section 3.04(d) of this Ordinance. n) “Interest and Sinking Fund” means the interest and sinking fund established by Section 2.02 of this Ordinance. o) “Interest Payment Date” means the date or dates upon which interest on the Certificates is scheduled to be paid until their respective dates of maturity or prior redemption, such dates being March 1 and September 1 of each year commencing March 1, 2014. p) “MSRB” means the Municipal Securities Rulemaking Board. q) “Net Revenues” means the gross revenues of the System less the expenses of operation and maintenance as said expenses are defined by Chapter 1502, Texas Government Code, as amended. r) “Ordinance” means this Ordinance. s) “Owner” means the person who is the registered owner of a Certificate or Certificates, as shown in the Register. t) “Paying Agent/Registrar” means initially The Bank of New York Mellon Trust Company, National Association, Dallas, Texas, or any successor thereto as provided in this Ordinance. u) “Prior Lien Bonds” means any and all bonds or other obligations of the Town presently outstanding or that may be hereafter issued, payable from and secured by a first lien on and pledge of the Net Revenues or by a lien on and pledge of the Net Revenues subordinate to a first lien and pledge of such Net Revenues but superior to the lien and pledge of the Surplus Revenues made for the Certificates. v) “Purchase Contract” means the purchase contract between the Town and the Underwriter approved in Section 7.01(b). Town Council Page 303 of 522 Meeting Date: Monday, April 7, 2014 w) “Record Date” means the last Business Day of the month next preceding an Interest Payment Date. x) “Register” means the Register specified in Section 3.06(a) of this Ordinance. y) “Representations Letter” means the Blanket Letter of Representations between the Town and DTC. z) “Rule” means SEC Rule 15c2-12, as amended from time to time. aa) “SEC” means the United States Securities and Exchange Commission. bb) “Special Payment Date” means the Special Payment Date prescribed by Section 3.03(b). cc) “Special Record Date” means the Special Record Date prescribed by Section 3.03(b). dd) “Surplus Revenues” means the revenues of the System remaining after payment of all operation and maintenance expenses thereof, and all debt service, reserve, and other requirements in connection with the Town’s Prior Lien Bonds; provided, however, that the amount of such Surplus Revenues pledged to the payment of the Certificates shall be limited to $1,000. ee) “System” as used in this Ordinance means the Town’s municipal drainage utility system, including all present and future additions, extensions, replacements, and improvements thereto. ff) “Town” means the Town of Trophy Club, Texas. gg) “Unclaimed Payments” means money deposited with the Paying Agent/Registrar for the payment of principal of, redemption premium, if any, or interest on the Certificates as the same come due and payable or money set aside for the payment of Certificates duly called for redemption prior to maturity. Section 1.02. Findings The declarations, determinations, and findings declared, made, and found in the preamble to this Ordinance are hereby adopted, restated, and made a part of the operative provisions hereof. Section 1.03. Table of Contents, Titles, and Headings The table of contents, titles, and headings of the Articles and Sections of this Ordinance have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modify or restrict any of the terms or provisions hereof and shall never be considered or given any effect in construing this Ordinance or any provision hereof or in ascertaining intent, if any question of intent should arise. Town Council Page 304 of 522 Meeting Date: Monday, April 7, 2014 Section 1.04. Interpretation a) Unless the context requires otherwise, words of the masculine gender shall be construed to include correlative words of the feminine and neuter genders and vice versa, and words of the singular number shall be construed to include correlative words of the plural number and vice versa. b) This Ordinance and all the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein. ARTICLE II ARTICLE IISECURITY FOR THE CERTIFICATES; INTEREST AND SINKING FUND Section 2.01. Payment of the Certificates a) Pursuant to the authority granted by the Texas Constitution and laws of the State of Texas, there shall be levied and there is hereby levied for the current year and for each succeeding year thereafter while any of the Certificates or any interest thereon is outstanding and unpaid, an ad valorem tax on each one hundred dollars valuation of taxable property within the Town, at a rate sufficient, within the limit prescribed by law, to pay the debt service requirements of the Certificates, being (i) the interest on the Certificates, and (ii) a sinking fund for their redemption at maturity or a sinking fund of two percent per annum (whichever amount is the greater), when due and payable, full allowance being made for delinquencies and costs of collection. b) The ad valorem tax thus levied shall be assessed and collected each year against all property appearing on the tax rolls of the Town most recently approved in accordance with law, and the money thus collected shall be deposited as collected to the Interest and Sinking Fund. c) Said ad valorem tax, the collections therefrom, and all amounts on deposit in or required hereby to be deposited to the Interest and Sinking Fund are hereby pledged and committed irrevocably to the payment of the principal of and interest on the Certificates when and as due and payable in accordance with their terms and this Ordinance. d) The amount of taxes to be provided annually for the payment of principal of and interest on the Certificates shall be determined and accomplished in the following manner: (i) The Town’s annual budget shall reflect (i) the amount of debt service requirements to become due on the Certificates in the next succeeding Fiscal Year of the Town and (ii) the amount on deposit in the Interest and Sinking Fund, as of the date such budget is prepared (after giving effect to any payments required to be made during the remainder of the then current Fiscal Year), and (iii) the amount of Surplus Revenues estimated and budgeted to Town Council Page 305 of 522 Meeting Date: Monday, April 7, 2014 be available for the payment of such debt service requirements on the Certificates during the next succeeding Fiscal Year. (ii) The amount required to be provided in the succeeding Fiscal Year of the Town from ad valorem taxes shall be the amount, if any, the debt service requirements to be paid on the Certificates in the next succeeding Fiscal Year of the Town exceeds the sum of (i) the amount shown to be on deposit in the Interest and Sinking Fund (after giving effect to any payments required to be made during the remainder of the then current Fiscal Year) at the time the annual budget is prepared, and (ii) the Surplus Revenues shown to be budgeted and available for payment of said debt service requirements. (iii)Following the final approval of the annual budget of the Town, the governing body of the Town shall, by ordinance, levy an ad valorem tax at a rate sufficient to produce taxes in the amount determined in paragraph (ii) above, to be utilized for purposes of paying the principal of and interest on the Certificates in the next succeeding Fiscal Year of the Town. e) The Town hereby covenants and agrees that the Surplus Revenues are hereby irrevocably pledged equally and ratably to the payment of the principal of, redemption premium, if any, and interest on the Certificates, as the same become due. f) If the liens and provisions of this Ordinance shall be released in a manner permitted by Article XI hereof, then the collection of such ad valorem tax may be suspended or appropriately reduced, as the facts may permit, and further deposits to the Interest and Sinking Fund may be suspended or appropriately reduced, as the facts may permit. In determining the aggregate principal amount of outstanding Certificates, there shall be subtracted the amount of any Certificates that have been duly called for redemption and for which money has been deposited with the Paying Agent/Registrar for such redemption. Section 2.02. Interest and Sinking Fund a) The Town hereby establishes a special fund or account to be designated the “Town of Trophy Club, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2014, Interest and Sinking Fund” (the “Interest and Sinking Fund”) said fund to be maintained at an official depository bank of the Town separate and apart from all other funds and accounts of the Town. b) Money on deposit in or required by this Ordinance to be deposited to the Interest and Sinking Fund shall be used solely for the purpose of paying the interest on and principal of the Certificates when and as due and payable in accordance with their terms and this Ordinance. Town Council Page 306 of 522 Meeting Date: Monday, April 7, 2014 ARTICLE III AUTHORIZATION; GENERAL TERMS AND PROVISIONS REGARDING THE CERTIFICATES Section 3.01. Authorization The Town’s certificates of obligation to be designated “Town of Trophy Club, Texas, Combination Tax and Revenue Certificates of Obligation, Series 2014” (the “Certificates”), are hereby authorized to be issued and delivered in accordance with the Constitution and laws of the State of Texas, specifically Subchapter C, Chapter 271, Texas Local Government Code. The Certificates shall be issued in the aggregate principal amount of $__________ for the following purposes, to wit: (i) purchasing land for a joint police and town hall facility (the “Project”) and (ii) to pay professional services of attorneys, financial advisors and other professionals in connection with the Project and the issuance of the Certificates. Section 3.02. Date, Denomination, Maturities, and Interest. a) The Certificates shall be dated March 15, 2014. The Certificates shall be in fully registered form, without coupons, in the denomination of $5,000 or any integral multiple thereof and shall be numbered separately from one upward, except the Initial Certificate, which shall be numbered T-1. b) The Certificates shall mature on September 1 in the years and in the principal amounts set forth in the following schedule: Years Serial Certificates Principal Amount Interest Rate Years Principal Amount Interest Rate 2014 2020 2015 2021 2016 2022 2017 2023 2018 2024 2019 Year Term Certificates Principal Amount Interest Rate 20__ 20__ Town Council Page 307 of 522 Meeting Date: Monday, April 7, 2014 c) Interest shall accrue and be paid on each Certificate respectively until its maturity or prior redemption from the later of the Certificate Date or the most recent interest payment date to which interest has been paid or provided for at the rates per annum for each maturity specified in the schedule contained in subsection (b) above. Such interest shall be payable semiannually on March 1 and September 1 of each year commencing March 1, 2015, and shall be computed on the basis of a 360-day year of twelve 30-day months. Section 3.03. Medium, Method, and Place of Payment a) The principal of, redemption premium, if any, and interest on the Certificates shall be paid in lawful money of the United States of America. b) Interest on the Certificates shall be payable to the Owners as shown in the Register at the close of business on the Record Date; provided, however, in the event of nonpayment of interest on a scheduled Interest Payment Date and for 30 days thereafter, a new record date for such interest payment (a “Special Record Date”) shall be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the Town. Notice of the Special Record Date and of the scheduled payment date of the past due interest (the “Special Payment Date,” which shall be 15 days after the Special Record Date) shall be sent at least five Business Days prior to the Special Record Date by United States mail, first class, postage prepaid, to the address of each Owner of a Certificate appearing on the Register at the close of business on the last Business Day next preceding the date of mailing of such notice. c) Interest shall be paid by check, dated as of and mailed on the Interest Payment Date, and sent by the Paying Agent/Registrar to each Owner, first class United States mail, postage prepaid, to the address of each Owner as it appears in the Register, or by such other customary banking arrangement acceptable to the Paying Agent/Registrar and the Owner; provided, however, that the Owner shall bear all risk and expense of such alternative banking arrangement. At the option of an Owner of at least $1,000,000 principal amount of the Certificates, interest may be paid by wire transfer to the bank account of such Owner on file with the Paying Agent/Registrar. d) The principal of each Certificate shall be paid to the Owner thereof on the due date, whether at the maturity date or the date of prior redemption thereof upon presentation and surrender of such Certificate at the Designated Payment/Transfer Office of the Paying Agent/Registrar. e) If the date for the payment of the principal of or interest on the Certificates shall be a Saturday, Sunday, legal holiday, or day on which banking institutions in the city where the Designated Payment/Transfer Office of the paying Agent/Registrar is located are required or authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not a Saturday, Town Council Page 308 of 522 Meeting Date: Monday, April 7, 2014 Sunday, legal holiday, or day on which banking institutions are required or authorized to close, and payment on such date shall have the same force and effect as if made on the original date payment was due and no additional interest shall be due by reason of nonpayment on the date on which such payment is otherwise stated to be due and payable. f) Unclaimed Payments shall be segregated in a special escrow account and held in trust, uninvested by the Paying Agent/Registrar, for the account of the Owners of the Certificates to which the Unclaimed Payments pertain. Subject to Title 6 of the Texas Property Code, Unclaimed Payments remaining unclaimed by the Owners entitled thereto for three years after the applicable payment or redemption date shall be applied to the next payment or payments on the Certificates thereafter coming due and, to the extent any such money remains after the retirement of all outstanding Certificates, shall be paid to the Town to be used for any lawful purpose. Thereafter, neither the Town, the Paying Agent/Registrar, nor any other person shall be liable or responsible to any Owners of such Certificates for any further payment of such unclaimed moneys or on account of any such Certificates, subject to Title 6 of the Texas Property Code. Section 3.04. Execution and Registration of Certificates a) The Certificates shall be executed on behalf of the Town by the Mayor and the Town Secretary, by their manual or facsimile signatures, and the official seal of the Town shall be impressed or placed in facsimile thereon. Such facsimile signatures on the Certificates shall have the same effect as if each of the Certificates had been signed manually and in person by each of said officers, and such facsimile seal on the Certificates shall have the same effect as if the official seal of the Town had been manually impressed upon each of the Certificates. b) In the event that any officer of the Town whose manual or facsimile signature appears on the Certificates ceases to be such officer before the authentication of such Certificates or before the delivery thereof, such manual or facsimile signature nevertheless shall be valid and sufficient for all purposes as if such officer had remained in such office. c) Except as provided below, no Certificate shall be valid or obligatory for any purpose or be entitled to any security or benefit of this Ordinance unless and until there appears thereon the Certificate of Paying Agent/Registrar substantially in the form provided herein, duly authenticated by manual execution by an officer or duly authorized signatory of the Paying Agent/Registrar. It shall not be required that the same officer or authorized signatory of the Paying Agent/Registrar sign the Certificate of Paying Agent/Registrar on all of the Certificates. In lieu of the executed Certificate of Paying Agent/Registrar described above, the Initial Certificate delivered at the Closing Date shall have attached thereto the Comptroller’s Registration Certificate substantially in the form provided herein, Town Council Page 309 of 522 Meeting Date: Monday, April 7, 2014 manually executed by the Comptroller of Public Accounts of the State of Texas, or by his duly authorized agent, which Certificate shall be evidence that the Certificate has been duly approved by the Attorney General of the State of Texas, that it is a valid and binding obligation of the Town, and that it has been registered by the Comptroller of Public Accounts of the State of Texas. d) On the Closing Date, one initial Certificate (the “Initial Certificate”) representing the entire principal amount of all Certificates, payable in stated installments to the initial purchaser, or its designee, executed by the Mayor and Town Secretary of the Town, approved by the Attorney General, and registered and manually signed by the Comptroller of Public Accounts, will be delivered to the initial purchaser or its designee. Upon payment for the Initial Certificate, the Paying Agent/Registrar shall cancel the Initial Certificate and deliver to DTC on behalf of the initial purchaser one registered definitive Certificate for each year of maturity of the Certificates in the aggregate principal amount of all Certificates for such maturity, registered in the name of Cede & Co., as nominee of DTC. Section 3.05. Ownership a) The Town, the Paying Agent/Registrar, and any other person may treat the person in whose name any Certificate is registered as the absolute owner of such Certificate for the purpose of making and receiving payment as herein provided (except interest shall be paid to the person in whose name such Certificate is registered on the Record Date or Special Record Date, as applicable), and for all other purposes, whether or not such Certificate is overdue, and neither the Town nor the Paying Agent/Registrar shall be bound by any notice or knowledge to the contrary. b) All payments made to the Owner of a Certificate shall be valid and effectual and shall discharge the liability of the Town and the Paying Agent/Registrar upon such Certificate to the extent of the sums paid. Section 3.06. Registration, Transfer, and Exchange a) So long as any Certificates remain outstanding, the Town shall cause the Paying Agent/Registrar to keep at the Designated Payment/Transfer Office a register (the “Register”) in which, subject to such reasonable regulations as it may prescribe, the Paying Agent/Registrar shall provide for the registration and transfer of Certificates in accordance with this Ordinance. b) The ownership of a Certificate may be transferred only upon the presentation and surrender of the Certificate at the Designated Payment/Transfer Office of the Paying Agent/Registrar with such endorsement or other evidence of transfer as is acceptable to the Paying Agent/Registrar. No transfer of any Certificate shall be effective until entered in the Register. c) The Certificates shall be exchangeable upon the presentation and surrender thereof at the Designated Payment/Transfer Office of the Paying Agent/Registrar Town Council Page 310 of 522 Meeting Date: Monday, April 7, 2014 for a Certificate or Certificates of the same maturity and interest rate and in a denomination or denominations of any integral multiple of $5,000, and in an aggregate principal amount equal to the unpaid principal amount of the Certificates presented for exchange. The Paying Agent/Registrar is hereby authorized to authenticate and deliver Certificates exchanged for other Certificates in accordance with this Section. d) Each exchange Certificate delivered by the Paying Agent/Registrar in accordance with this Section shall constitute an original contractual obligation of the Town and shall be entitled to the benefits and security of this Ordinance to the same extent as the Certificate or Certificates in lieu of which such exchange Certificate is delivered. e) No service charge shall be made to the Owner for the initial registration, subsequent transfer, or exchange for a different denomination of any of the Certificates. The Paying Agent/Registrar, however, may require the Owner to pay a sum sufficient to cover any tax or other governmental charge that is authorized to be imposed in connection with the registration, transfer, or exchange of a Certificate. f) Neither the Town nor the Paying Agent/Registrar shall be required to issue, transfer or exchange any Certificate called for redemption, in whole or in part, within 45 calendar days prior to the date fixed for redemption; provided, however, such limitation shall not be applicable to an exchange by the Owner of the uncalled principal balance of a Certificate. Section 3.07. Cancellation All Certificates paid or redeemed before scheduled maturity in accordance with this Ordinance, and all Certificates in lieu of which exchange Certificates or replacement Certificates are authenticated and delivered in accordance with this Ordinance, shall be canceled and proper records made regarding such payment, redemption, exchange, or replacement. The Paying Agent/Registrar shall then return such canceled Certificates to the Town or may in accordance with law dispose of such cancelled Certificates. Section 3.08. Temporary Certificates a) Following the delivery and registration of the Initial Certificate and pending the preparation of definitive Certificates, the proper officers of the Town may execute and, upon the Town’s request, the Paying Agent/Registrar shall authenticate and deliver, one or more temporary Certificates that are printed, lithographed, typewritten, mimeographed, or otherwise produced, in any denomination, substantially of the tenor of the definitive Certificates in lieu of which they are delivered, without coupons, and with such appropriate insertions, omissions, substitutions, and other variations as the officers of the Town executing such temporary Certificates may determine, as evidenced by their signing of such temporary Certificates. Town Council Page 311 of 522 Meeting Date: Monday, April 7, 2014 b) Until exchanged for Certificates in definitive form, such Certificates in temporary form shall be entitled to the benefit and security of this Ordinance. c) The Town, without unreasonable delay, shall prepare, execute and deliver to the Paying Agent/Registrar the Certificates in definitive form; thereupon, upon the presentation and surrender of the Certificate or Certificates in temporary form to the Paying Agent/Registrar, the Paying Agent/Registrar shall cancel the Certificates in temporary form and shall authenticate and deliver in exchange there for a Certificate or Certificates of the same maturity and series, in definitive form, in the authorized denomination, and in the same aggregate principal amount, as the Certificate or Certificates in temporary form surrendered. Such exchange shall be made without the making of any charge therefor to any Owner. Section 3.09. Replacement Certificates a) Upon the presentation and surrender to the Paying Agent/Registrar of a mutilated Certificate, the Paying Agent/Registrar shall authenticate and deliver in exchange therefor a replacement Certificate of like tenor and principal amount, bearing a number not contemporaneously outstanding. The Town or the Paying Agent/Registrar may require the Owner of such Certificate to pay a sum sufficient to cover any tax or other governmental charge that is authorized to be imposed in connection therewith and any other expenses connected therewith. b) In the event that any Certificate is lost, apparently destroyed or wrongfully taken, the Paying Agent/ Registrar, pursuant to the applicable laws of the State of Texas and in the absence of notice or knowledge that such Certificate has been acquired by a bona fide purchaser, shall authenticate and deliver a replacement Certificate of like tenor and principal amount, bearing a number not contemporaneously outstanding, provided that the Owner first complies with the following requirements: (i) furnishes to the Paying Agent/Registrar satisfactory evidence of his or her ownership of and the circumstances of the loss, destruction, or theft of such Certificate; (ii) furnishes such security or indemnity as may be required by the Paying Agent/Registrar to save it and the Town harmless; (iii) pays all expenses and charges in connection therewith, including, but not limited to, printing costs, legal fees, fees of the Paying Agent/Registrar, and any tax or other governmental charge that is authorized to be imposed; and (iv) satisfies any other reasonable requirements imposed by the Town and the Paying Agent/Registrar. c) If, after the delivery of such replacement Certificate, a bona fide purchaser of the original Certificate in lieu of which such replacement Certificate was issued Town Council Page 312 of 522 Meeting Date: Monday, April 7, 2014 presents for payment such original Certificate, the Town and the Paying Agent/Registrar shall be entitled to recover such replacement Certificate from the person to whom it was delivered or any person taking therefrom, except a bona fide purchaser, and shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost, or expense incurred by the Town or the Paying Agent/Registrar in connection therewith. d) In the event that any such mutilated, lost, apparently destroyed, or wrongfully taken Certificate has become or is about to become due and payable, the Paying Agent/Registrar, in its discretion, instead of issuing a replacement Certificate, may pay such Certificate when it becomes due and payable. e) Each replacement Certificate delivered in accordance with this Section shall constitute an original additional contractual obligation of the Town and shall be entitled to the benefits and security of this Ordinance to the same extent as the Certificate or Certificates in lieu of which such replacement Certificate is delivered. Section 3.10. Book-Entry-Only System a) Notwithstanding any other provision hereof, upon initial issuance of the Certificates, the Certificates shall be registered in the name of Cede & Co., as nominee of DTC. The definitive Certificates shall be initially issued in the form of a single separate certificate for each of the maturities thereof. b) With respect to Certificates registered in the name of Cede & Co., as nominee of DTC, the Town and the Paying Agent/Registrar shall have no responsibility or obligation to any DTC Participant or to any person on behalf of whom such a DTC Participant holds an interest in the Certificates. Without limiting the immediately preceding sentence, the Town and the Paying Agent/Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any DTC Participant with respect to any ownership interest in the Certificates, (ii) the delivery to any DTC Participant or any other person, other than an Owner, as shown on the Register, of any notice with respect to the Certificates, including any notice of redemption, or (iii) the payment to any DTC Participant or any other person, other than an Owner, as shown in the Register of any amount with respect to principal of, premium, if any, or interest on the Certificates. Notwithstanding any other provision of this Ordinance to the contrary, the Town and the Paying Agent/Registrar shall be entitled to treat and consider the person in whose name each Certificate is registered in the Register as the absolute owner of such Certificate for the purpose of payment of principal of, premium, if any, and interest on Certificates, for the purpose of giving notices of redemption and other matters with respect to such Certificate, for the purpose of registering transfer with respect to such Certificate, and for all other purposes whatsoever. The Paying Agent/Registrar shall pay all principal of, premium, if any, and interest on the Certificates only to or upon the order of the respective Owners as shown in the Register, as provided in this Ordinance, or Town Council Page 313 of 522 Meeting Date: Monday, April 7, 2014 their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the Town’s obligations with respect to payment of, premium, if any, and interest on the Certificates to the extent of the sum or sums so paid. No person other than an Owner, as shown in the Register, shall receive a certificate evidencing the obligation of the Town to make payments of amounts due pursuant to this Ordinance. Upon delivery by DTC to the Paying Agent/Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the word “Cede & Co.” in this Ordinance shall refer to such new nominee of DTC. c) The Representations Letter previously executed and delivered by the Town, and applicable to the Town’s obligations delivered in book-entry-only form to DTC as securities depository, is hereby ratified and approved for the Certificates. Section 3.11. Successor Securities Depository; Transfer Outside Book Entry-Only System In the event that the Town or the Paying Agent/Registrar determines that DTC is incapable of discharging its responsibilities described herein and in the Representations Letter of the Town to DTC, and that it is in the best interest of the Town and the beneficial owners of the Certificates that they be able to obtain certificated Certificates, or in the event DTC discontinues the services described herein, the Town shall (i) appoint a successor securities depository, qualified to act as such under Section 17(a) of the Securities and Exchange Act of 1934, as amended, notify DTC and DTC Participants of the appointment of such successor securities depository and transfer one or more separate Certificates to such successor securities depository; or (ii) notify DTC and DTC Participants of the availability through DTC of certificated Certificates and cause the Paying Agent/Registrar to transfer one or more separate registered Certificates to DTC Participants having Certificates credited to their DTC accounts. In such event, the Certificates shall no longer be restricted to being registered in the Register in the name of Cede & Co., as nominee of DTC, but may be registered in the name of the successor securities depository, or its nominee, or in whatever name or names Owners transferring or exchanging Certificates shall designate, in accordance with the provisions of this Ordinance. Section 3.12. Payments to Cede & Co. Notwithstanding any other provision of this Ordinance to the contrary, so long as the Certificates are registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of, premium, if any, and interest on such Certificates, and all notices with respect to such Certificates shall be made and given, respectively, in the manner provided in the Representations Letter of the Town to DTC. Town Council Page 314 of 522 Meeting Date: Monday, April 7, 2014 ARTICLE IV REDEMPTION OF CERTIFICATES BEFORE MATURITY Section 4.01. Limitation on Redemption The Certificates shall be subject to redemption before scheduled maturity only as provided in this Article IV. Section 4.02. Optional Redemption a) The Town reserves the option to redeem Certificates maturing on and after September 1, 2025 in whole or any part, before their respective scheduled maturity dates, on September 1, 2024 or on any date thereafter, such redemption date or dates to be fixed by the Town, at a price equal to the principal amount of the Certificates called for redemption plus accrued interest to the date fixed for redemption. b) If less than all of the Certificates are to be redeemed pursuant to an optional redemption, the Town shall determine the maturity or maturities and the amounts thereof to be redeemed and shall direct the Paying Agent/Registrar to call by lot the Certificates, or portions thereof, within such maturity or maturities and in such principal amounts for redemption. c) The Town, at least 45 days before the redemption date, unless a shorter period shall be satisfactory to the Paying Agent/Registrar, shall notify the Paying Agent/Registrar of such redemption date and of the principal amount of Certificates to be redeemed. Section 4.03. Mandatory Sinking Fund Redemption a) The Certificates maturing on September 1, 20__ and September 1, 20__ (the “Term Certificates”) are subject to scheduled mandatory redemption and will be redeemed by the Town, in part at a price equal to the principal amount thereof, without premium, plus accrued interest to the redemption date, out of moneys available for such purpose in the Interest and Sinking Fund, on the dates and in the respective principal amounts as set forth below. Term Certificates Maturing September 1, 20 Redemption Date September 1, 20__ Redemption Amount September 1, 20__* *maturity Town Council Page 315 of 522 Meeting Date: Monday, April 7, 2014 Term Certificates Maturing September 1, 20 Redemption Date September 1, 20__ Redemption Amount September 1, 20__* *maturity b) At least forty-five (45) days prior to each scheduled mandatory redemption date, the Paying Agent/Registrar shall select for redemption by lot, or by any other customary method that results in a random selection, a principal amount of Term Certificates equal to the aggregate principal amount of such Term Certificates to be redeemed, shall call such Term Certificates for redemption on such scheduled mandatory redemption date, and shall give notice of such redemption, as provided in Section 4.05. c) The principal amount of the Term Certificates required to be redeemed on any redemption date pursuant to subparagraph (a) of this Section 4.03 shall be reduced, at the option of the Town, by the principal amount of any Term Certificates which, at least 45 days prior to the mandatory sinking fund redemption date (i) shall have been acquired by the Town at a price not exceeding the principal amount of such Term Certificates plus accrued interest to the date of purchase thereof, and delivered to the Paying Agent/Registrar for cancellation, or (ii) shall have been redeemed pursuant to the optional redemption provisions hereof and not previously credited to a mandatory sinking fund redemption. Section 4.04. Partial Redemption a) A portion of a single Certificate of a denomination greater than $5,000 may be redeemed, but only in a principal amount equal to $5,000 or any integral multiple thereof. If such a Certificate is to be partially redeemed, the Paying Agent/Registrar shall treat each $5,000 portion of the Certificate as though it were a single Certificate for purposes of selection for redemption. b) Upon surrender of any Certificate for redemption in part, the Paying Agent/Registrar, in accordance with Section 3.06 of this Ordinance, shall authenticate and deliver an exchange Certificate or Certificates in an aggregate principal amount equal to the unredeemed portion of the Certificate so surrendered, such exchange being without charge. c) The Paying Agent/Registrar shall promptly notify the Town in writing of the principal amount to be redeemed of any Certificate as to which only a portion thereof is to be redeemed. Town Council Page 316 of 522 Meeting Date: Monday, April 7, 2014 Section 4.05. Notice of Redemption to Owners a) The Paying Agent/Registrar shall give notice of any redemption of Certificates by sending notice by first class United States mail, postage prepaid, not less than 30 days before the date fixed for redemption, to the Owner of each Certificate (or part thereof) to be redeemed, at the address shown on the Register at the close of business on the Business Day next preceding the date of mailing such notice. b) The notice shall state the redemption date, the redemption price, the place at which the Certificates are to be surrendered for payment, and, if less than all the Certificates outstanding are to be redeemed, an identification of the Certificates or portions thereof to be redeemed. c) Any notice given as provided in this Section shall be conclusively presumed to have been duly given, whether or not the Owner receives such notice. Section 4.06. Payment Upon Redemption a) Before or on each redemption date, the Town shall deposit with the Paying Agent/Registrar money sufficient to pay all amounts due on the redemption date and the Paying Agent/Registrar shall make provision for the payment of the Certificates to be redeemed on such date by setting aside and holding in trust such amounts as are received by the Paying Agent/Registrar from the Town and shall use such funds solely for the purpose of paying the principal of, redemption premium, if any, and accrued interest on the Certificates being redeemed. b) Upon presentation and surrender of any Certificate called for redemption at the Designated Payment/Transfer Office of the Paying Agent/Registrar on or after the date fixed for redemption, the Paying Agent/Registrar shall pay the principal of, redemption premium, if any, and accrued interest on such Certificate to the date of redemption from the money set aside for such purpose. Section 4.07. Effect of Redemption a) Notice of redemption having been given as provided in Section 4.05 of this Ordinance, the Certificates or portions thereof called for redemption shall become due and payable on the date fixed for redemption and, unless the Town defaults in its obligation to make provision for the payment of the principal thereof, redemption premium, if any, or accrued interest thereon, such Certificates or portions thereof shall cease to bear interest from and after the date fixed for redemption, whether or not such Certificates are presented and surrendered for payment on such date. b) If the Town shall fail to make provision for payment of all sums due on a redemption date, then any Certificate or portion thereof called for redemption shall continue to bear interest at the rate stated on the Certificate until due provision is made for the payment of same by the Town. Town Council Page 317 of 522 Meeting Date: Monday, April 7, 2014 Section 4.08. Conditional Notice of Redemption The Town reserves the right to give notice of its election or direction to redeem Bonds conditioned upon the occurrence of subsequent events. Such notice may state (i) that the redemption is conditioned upon the deposit of moneys and/or authorized securities, in an amount equal to the amount necessary to effect the redemption, with the Paying Agent/Registrar, or such other entity as may be authorized by law, no later than the redemption date, or (ii) that the Town retains the right to rescind such notice at any time on or prior to the scheduled redemption date if the Town delivers a certificate of the Town to the Paying Agent/Registrar instructing the Paying Agent/Registrar to rescind the redemption notice and such notice and redemption shall be of no effect if such moneys and/or authorized securities are not so deposited or if the notice is rescinded. The Paying Agent/Registrar shall give prompt notice of any such rescission of a conditional notice of redemption to the affected Owners. Any Bonds subject to conditional redemption and such redemption has been rescinded shall remain Outstanding and the rescission of such redemption shall not constitute an event of default. Further, in the case of a conditional notice of redemption, the failure of the Town to make moneys and or authorized securities available in part or in whole on or before the redemption date shall not constitute an event of default. Section 4.09. Lapse of Payment Money set aside for the redemption of Certificates and remaining unclaimed by the Owners of such Certificates shall be subject to the provisions of Section 3.03(f) hereof. ARTICLE V PAYING AGENT/REGISTRAR Section 5.01. Appointment of Initial Paying Agent/Registrar The Bank of New York Mellon Trust Company, National Association, Dallas, Texas, is hereby appointed as the initial Paying Agent/Registrar for the Certificates. Section 5.02. Qualifications Each Paying Agent/Registrar shall be a commercial bank, a trust company organized under the laws of the State of Texas, or other entity duly qualified and legally authorized to serve as and perform the duties and services of paying agent and registrar for the Certificates. Section 5.03. Maintaining Paying Agent/Registrar a) At all times while any of the Certificates are outstanding, the Town will maintain a Paying Agent/Registrar that is qualified under Section 5.02 of this Ordinance. The Mayor is hereby authorized and directed to execute an agreement with the Paying Agent/Registrar specifying the duties and responsibilities of the Town and the Paying Agent/Registrar in substantially the form presented at this meeting, Town Council Page 318 of 522 Meeting Date: Monday, April 7, 2014 such form of agreement being hereby approved. The signature of the Mayor shall be attested by the Town Secretary of the Town. b) If the Paying Agent/Registrar resigns or otherwise ceases to serve as such, the Town will promptly appoint a replacement. Section 5.04. Termination The Town, upon not less than sixty (60) days’ notice, reserves the right to terminate the appointment of any Paying Agent/Registrar by delivering to the entity whose appointment is to be terminated written notice of such termination. Section 5.05. Notice of Change to Owners Promptly upon each change in the entity serving as Paying Agent/Registrar, the Town will cause notice of the change to be sent to each Owner by first class United States mail, postage prepaid, at the address thereof in the Register, stating the effective date of the change and the name and mailing address of the replacement Paying Agent/Registrar. Section 5.06. Agreement to Perform Duties and Functions By accepting the appointment as Paying Agent/Registrar and executing the Paying Agent/Registrar Agreement, the Paying Agent/Registrar is deemed to have agreed to the provisions of this Ordinance and that it will perform the duties and functions of Paying Agent/Registrar prescribed thereby. Section 5.07. Delivery of Records to Successor If a Paying Agent/Registrar is replaced, such Paying Agent/Registrar, promptly upon the appointment of the successor, will deliver the Register (or a copy thereof) and all other pertinent books and records relating to the Certificates to the successor Paying Agent/Registrar. ARTICLE VI FORM OF THE CERTIFICATES Section 6.01. Form Generally a) The Certificates, including the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Certificate of the Paying Agent/Registrar, and the Assignment form to appear on each of the Certificates, (i) shall be substantially in the form set forth in this Article, with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance, and (ii) may have such letters, numbers, or other marks of identification (including identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including any reproduction of Town Council Page 319 of 522 Meeting Date: Monday, April 7, 2014 an opinion of counsel) thereon as, consistently herewith, may be determined by the Town or by the officers executing such Certificates, as evidenced by their execution thereof. b) Any portion of the text of any Certificates may be set forth on the reverse side thereof, with an appropriate reference thereto on the face of the Certificates. c) The definitive Certificates, if any, shall be typewritten, photocopied, printed, lithographed, or engraved, and may be produced by any combination of these methods or produced in any other similar manner, all as determined by the officers executing such Certificates, as evidenced by their execution thereof. d) The Initial Certificate submitted to the Attorney General of the State of Texas may be typewritten and photocopied or otherwise reproduced. Section 6.02. Form of the Certificates The form of the Certificates, including the form of the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the form of Certificate of the Paying Agent/Registrar and the form of Assignment appearing on the Certificates, shall be substantially as follows: a) Form of Certificate. REGISTERED No. _________ REGISTERED $_________ United States of America State of Texas Counties of Tarrant and Denton TOWN OF TROPHY CLUB, TEXAS COMBINATION TAX AND REVENUE CERTIFICATE OF OBLIGATION SERIES 2014 INTEREST RATE: MATURITY DATE: DATED DATE: CUSIP NUMBER: ______% September 1, ____ March 15, 2014 ______ ___ The Town of Trophy Club (the “Town”), in the Counties of Tarrant and Denton, State of Texas, for value received, hereby promises to pay to ________________________________ or registered assigns, on the Maturity Date specified above, the sum of _______________________ DOLLARS Town Council Page 320 of 522 Meeting Date: Monday, April 7, 2014 unless this Certificate shall have been sooner called for redemption and the payment of the principal hereof shall have been provided for, and to pay interest on such principal amount from the later of Dated Date specified above or the most recent interest payment date to which interest has been paid or provided for until payment of such principal amount has been provided for, at the per annum rate of interest specified above, computed on the basis of a 360-day year of twelve 30-day months, such interest to be paid semiannually on March 1 and September 1 of each year, commencing March 1, 2015. The principal of this Certificate shall be payable without exchange or collection charges in lawful money of the United States of America upon presentation and surrender of this Certificate at the designated office in Dallas, Texas, of The Bank of New York Mellon Trust Company, National Association, as Paying Agent/Registrar (the “Designated Payment/Transfer Office”), or, with respect to a successor paying agent/registrar, at the Designated Payment/Transfer Office of such successor Paying Agent/Registrar. Interest on this Certificate is payable by check dated as of the interest payment date, and will be mailed by the Paying Agent/Registrar to the registered owner at the address shown on the registration books kept by the Paying Agent/Registrar or by such other customary banking arrangement acceptable to the Paying Agent/Registrar and the registered owner; provided, however, such registered owner shall bear all risk and expenses of such customary banking arrangement. At the option of an Owner of at least $1,000,000 principal amount of the Certificates, interest may be paid by wire transfer to the bank account of such Owner on file with the Paying Agent/Registrar. For the purpose of the payment of interest on this Certificate, the registered owner shall be the person in whose name this Certificate is registered at the close of business on the “Record Date,” which shall be the fifteenth business day of the month next preceding such interest payment date; provided, however, that in the event of nonpayment of interest on a scheduled payment date and for 30 days thereafter, a new record date for such interest payment (a “Special Record Date”) shall be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the Town. Notice of the Special Record Date and of the scheduled payment date of the past due interest (the “Special Payment Date,” which date shall be 15 days after the Special Record Date) shall be sent at least five business days prior to the Special Record Date by United States mail, first class, postage prepaid, to the address of each Owner of a Certificate appearing on the books of the Paying Agent/Registrar at the close of business on the last business day next preceding the date of mailing of such notice. If the date for the payment of the principal of or interest on this Certificate shall be a Saturday, Sunday, legal holiday, or day on which banking institutions in the city where the Designated Payment/Transfer Office of the Paying Agent/Registrar is located are required or authorized by law or executive order to close, the date for such payment shall be the next succeeding day that is not a Saturday, Sunday, legal holiday, or day on which banking institutions are required or authorized to close, and payment on such date shall have the same force and effect as if made on the original date payment was due and no additional interest shall be due by reason of nonpayment on the date on which such payment is otherwise stated to be due and payable. Town Council Page 321 of 522 Meeting Date: Monday, April 7, 2014 This Certificate is one of a series of fully registered certificates specified in the title hereof issued in the aggregate principal amount of $__________ (herein referred to as the “Certificates”), issued pursuant to a certain ordinance of the Town (the “Ordinance”) for the purpose of paying contractual obligations to be incurred for authorized public improvements (the “Project”) as described in the Ordinance, and to pay the contractual obligations for professional services of attorneys, financial advisors and other professionals in connection with the Project and the issuance of the Certificates. The Certificates and the interest thereon are payable from the levy of a direct and continuing ad valorem tax within the limits prescribed by law, against all taxable property in the Town and from a pledge of certain Surplus Revenues (not to exceed $1,000) of the Town’s municipal drainage utility system, all as described and provided for in the Ordinance. The Town has reserved the option to redeem the Certificates maturing on or after September 1, 2024, in whole or in part, before their respective scheduled maturity dates, on September 1, 2024, or on any date thereafter, at a price equal to the principal amount of the Certificates so called for redemption plus accrued interest to the date fixed for redemption. If less than all of the Certificates are to be redeemed, the Town shall determine the maturity or maturities and the amounts thereof to be redeemed and shall direct the Paying Agent/Registrar to call by lot or other customary method that results in a random selection the Certificates, or portions thereof, within such maturity and in such principal amounts, for redemption. The Certificates maturing September 1, 20__ and September 1, 20__ (the “Term Certificates”) are subject to scheduled mandatory redemption and will be redeemed by the Town, in part at a price equal to the principal amount thereof, without premium, plus accrued interest to the redemption date, out of moneys available for such purpose in the Interest and Sinking Fund, on the dates and in the respective principal amounts as set forth below. Term Certificates Maturing September 1, 20 Redemption Date September 1, 20__ Redemption Amount September 1, 20__* *maturity Term Certificates Maturing September 1, 20 Redemption Date September 1, 20__ Redemption Amount September 1, 20__* *maturity Town Council Page 322 of 522 Meeting Date: Monday, April 7, 2014 At least forty-five (45) days prior to each scheduled mandatory redemption date, the Paying Agent/Registrar shall select for redemption by lot, or by any other customary method that results in a random selection, a principal amount of Term Certificates equal to the aggregate principal amount of such Term Certificates to be redeemed, shall call such Term Certificates for redemption on such scheduled mandatory redemption date, and shall give notice of such redemption, as provided in the Ordinance. In lieu of calling the Term Certificates described above, for mandatory redemption, the Town reserves the right to purchase such Term Certificates at a price not exceeding the principal amount thereof, plus accrued interest, with (a) moneys on deposit in the Interest and Sinking Fund which are available for the mandatory redemption of such Term Certificates or (b) other lawfully available funds. Upon any such purchase in lieu of redemption, not less than five (5) days prior to a mandatory redemption date, the Town shall deliver such Term Certificates to the Paying Agent/Registrar prior to the selection of the Term Certificates for redemption and the principal amount so delivered shall be credited against the amount required to be called for redemption in that year. Notice of such redemption or redemptions shall be given by first class mail, postage prepaid, not less than 30 days before the date fixed for redemption, to the registered owner of each of the Certificates to be redeemed in whole or in part. Notice having been so given, the Certificates or portions thereof designated for redemption shall become due and payable on the redemption date specified in such notice; from and after such date, notwithstanding that any of the Certificates or portions thereof so called for redemption shall not have been surrendered for payment, interest on such Certificates or portions thereof shall cease to accrue. The Town reserves the right to give notice of its election or direction to redeem Certificates conditioned upon the occurrence of subsequent events. Such notice may state (i) that the redemption is conditioned upon the deposit of moneys and/or authorized securities, in an amount equal to the amount necessary to effect the redemption, with the Paying Agent/Registrar, or such other entity as may be authorized by law, no later than the redemption date, or (ii) that the Town retains the right to rescind such notice at any time on or prior to the scheduled redemption date if the Town delivers a certificate of the Town to the Paying Agent/Registrar instructing the Paying Agent/Registrar to rescind the redemption notice and such notice and redemption shall be of no effect if such moneys and/or authorized securities are not so deposited or if the notice is rescinded. The Paying Agent/Registrar shall give prompt notice of any such rescission of a conditional notice of redemption to the affected Owners. Any Certificates subject to conditional notice of redemption and such redemption has been rescinded shall remain Outstanding and the rescission of such redemption shall not constitute an event of default. Further, in the case of a conditional redemption, the failure of the Town to make moneys and or authorized securities available in part or in whole on or before the redemption date shall not constitute an event of default. Town Council Page 323 of 522 Meeting Date: Monday, April 7, 2014 As provided in the Ordinance, and subject to certain limitations therein set forth, this Certificate is transferable upon surrender of this Town for transfer at the Designated Payment/Transfer Office of the Paying Agent/Registrar with such endorsement or other evidence of transfer as is acceptable to the Paying Agent/Registrar; thereupon, one or more new fully registered Certificates of the same stated maturity, of authorized denominations, bearing the same rate of interest, and for the same aggregate principal amount will be issued to the designated transferee or transferees. Neither the Town nor the Paying Agent/Registrar shall be required to issue, transfer or exchange any Certificate called for redemption where such redemption is scheduled to occur within 45 calendar days of the date fixed for redemption; provided, however, such limitation shall not be applicable to an exchange by the registered owner of the uncalled principal balance of a Certificate. The Town, the Paying Agent/Registrar, and any other person may treat the person in whose name this Certificate is registered as the owner hereof for the purpose of receiving payment as herein provided (except interest shall be paid to the person in whose name this Certificate is registered on the Record Date, or the Special Record Date, as applicable) and for all other purposes, whether or not this Certificate be overdue, and neither the Town nor the Paying Agent/Registrar shall be affected by notice to the contrary. IT IS HEREBY CERTIFIED AND RECITED that the issuance of this Certificate and the series of which it is a part is duly authorized by law; that all acts, conditions, and things to be done precedent to and in the issuance of the Certificates have been properly done and performed and have happened in regular and due time, form, and manner as required by law; that ad valorem taxes upon all taxable property in the Town have been levied for and pledged to the payment of the debt service requirements of the Certificates within the limit prescribed by law; that, in addition to said taxes, further provisions have been made for the payment of the debt service requirements of the Certificates from a pledge of a limited amount of the Surplus Revenues, as described in the Ordinance, derived by the Town from the operation of the municipal drainage utility system in an amount limited to $1,000, that when so collected, such taxes and Surplus Revenues shall be appropriated to such purposes; and that the total indebtedness of the Town, including the Certificates, does not exceed any constitutional or statutory limitation. IN WITNESS WHEREOF, the Town has caused this Certificate to be executed by the manual or facsimile signature of the Mayor of the Town and countersigned by the manual or facsimile signature of the Town Secretary, and the official seal of the Town has been duly impressed or placed in facsimile on this Certificate. _______________________________ Mayor, Town of Trophy Club, Texas _____________________________________ Town Secretary, Town of Trophy Club, Texas Town Council Page 324 of 522 Meeting Date: Monday, April 7, 2014 b) Form of Comptroller’s Registration Certificate OFFICE OF THE COMPTROLLER § . The following Comptroller’s Registration Certificate may be deleted from the definitive Certificates if such certificate on the Initial Certificate is fully executed. OF PUBLIC ACCOUNTS § REGISTER NO. ____________ OF THE STATE OF TEXAS § I hereby certify that there is on file and of record in my office a certificate of the Attorney General of the State of Texas to the effect that this Certificate has been examined by him as required by law, that he finds that it has been issued in conformity with the Constitution and laws of the State of Texas, and that it is a valid and binding obligation of the Town of Trophy Club, Texas; and that this Certificate has this day been registered by me. Witness my hand and seal of office at Austin, Texas, _____________________. _______________________________ Comptroller of Public Accounts of the State of Texas c) Form of Certificate of Paying Agent/Registrar . The following Certificate of Paying Agent/Registrar may be deleted from each Initial Certificate if the Comptroller’s Registration Certificate appears thereon. CERTIFICATE OF PAYING AGENT/REGISTRAR The records of the Paying Agent/Registrar show that the Initial Certificates of this series of Certificates was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas, and that this is one of the Certificates referred to in the within-mentioned Ordinance. THE BANK OF NEW YORK MELLON TRUST COMPANY, NATIONAL ASSOCIATION, as Paying Agent/Registrar Dated: ________________ By: _____________________________ Authorized Signatory d) Form of Assignment. Town Council Page 325 of 522 Meeting Date: Monday, April 7, 2014 ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto (print or typewrite name, address and Zip Code of transferee): ___________________ _____________________________________________________________________ _____________________________________________________________________ (Social Security or other identifying number: ____________________) the within Certificate and all rights hereunder and hereby irrevocably constitutes and appoints ____________________ attorney to transfer the within Certificate on the books kept for registration hereof, with full power of substitution in the premises. Dated: __________________ Signature Guaranteed By: __________________________________ __________________________________ Authorized Signatory __________________________________ NOTICE: The Signature on this Assignment must correspond with the name of the registered owner as it appears on the face of the within Certificate in every particular and must be guaranteed in a manner acceptable to the Paying Agent/Registrar. e) The initial Certificate shall be in the form set forth in subsections (a) through (d) of this Section, except for the following alterations: (i) immediately under the name of the Certificate, the headings “INTEREST RATE,” and “MATURITY DATE” shall both be completed with the words “As Shown Below” and the words “CUSIP NO.” shall be deleted; (ii) in the first paragraph of the Certificate, the words “on the Maturity Date specified above, the sum of ____________________ DOLLARS” shall be deleted and the following will be inserted: “on the first day of March in the years, in the principal installments and bearing interest at the per annum rates set forth in the following schedule: Year Principal Amount Interest Rate (Information to be inserted from Section 3.02(c) hereof). (iii) the Initial Certificate shall be numbered T-1. Section 6.03. CUSIP Registration The Town may secure identification numbers through the CUSIP Global Services, managed by Standard & Poor’s Financial Services LLC on behalf of the American Bankers Association, and may authorize the printing of such numbers on the face of the Certificates. It is expressly provided, however, that the presence or absence of CUSIP numbers on the Certificates shall be of no significance or effect in regard to the legality Town Council Page 326 of 522 Meeting Date: Monday, April 7, 2014 thereof and neither the Town nor the attorneys approving said Certificates as to legality are to be held responsible for CUSIP numbers incorrectly printed on the Certificates. Section 6.04. Legal Opinion The approving legal opinion of Bracewell & Giuliani LLP, Bond Counsel, may be attached to or printed on the reverse side of each Certificate over the certification of the Town Secretary of the Town, which may be executed in facsimile. Section 6.05. Statement Insurance A statement relating to a municipal bond insurance policy, if any, to be issued for the Certificates, may be printed on each Certificate. ARTICLE VII SALE AND DELIVERY OF CERTIFICATES; DEPOSIT OF PROCEEDS; FLOW OF FUNDS Section 7.01. Sale of Certificates; Official Statement a) The Certificates, having been duly advertised and offered for sale at competitive bid, are hereby officially sold and awarded to __________________ (the “Purchaser”) for a purchase price equal to the principal amount thereof plus a cash premium of $_________, being the bid which produced the lowest true interest cost to the Town. The Initial Certificate shall be registered in the name of the Purchaser or its designee. b) The form and substance of the Preliminary Official Statement and any addenda, supplement or amendment thereto, are hereby in all respects approved and adopted and is hereby deemed final as of its date within the meaning and for the purposes of paragraph (b)(1) of Rule 15c2-12 under the Securities Exchange Act of 1934, as amended. The Mayor and Town Secretary are hereby authorized and directed to cause to be prepared a final Official Statement (the “Official Statement”) incorporating applicable pricing information pertaining to the Certificates, and to execute the same by manual or facsimile signature and deliver appropriate numbers of executed copies thereof to the Purchaser. The Official Statement as thus approved, executed and delivered, with such appropriate variations as shall be approved by the Mayor and the Purchaser, may be used by the Purchaser in the public offering and sale thereof. The Town Secretary is hereby authorized and directed to include and maintain a copy of the Official Statement and any addenda, supplement or amendment thereto thus approved among the permanent records of this meeting. The use and distribution of the Preliminary Official Statement, and the preliminary public offering of the Certificates by the Purchaser, is hereby ratified, approved and confirmed. c) All officers of the Town are authorized to execute such documents, certificates and receipts as they may deem appropriate in order to consummate the delivery of the Certificates in accordance with the terms of sale therefor including, without Town Council Page 327 of 522 Meeting Date: Monday, April 7, 2014 limitation, the Purchase Contract. Further, in connection with the submission of the record of proceedings for the Certificates to the Attorney General of the State of Texas for examination and approval of such Certificates, the appropriate officer of the Town is hereby authorized and directed to issue a check of the Town payable to the Attorney General of the State of Texas as a nonrefundable examination fee in the amount required by Chapter 1202, Texas Government Code (such amount per series to be the lesser of (i) 1/10th of 1% of the principal amount of such series of the Certificates or (ii) $9,500.) d) The obligation of the Purchaser to accept delivery of the Certificates is subject to the Purchaser being furnished with the final, approving opinion of Bracewell & Giuliani LLP, bond counsel for the Town, which opinion shall be dated and delivered the Closing Date. Section 7.02. Control and Delivery of Certificates a) The Mayor of the Town is hereby authorized to have control of the Initial Certificate and all necessary records and proceedings pertaining thereto pending investigation, examination, and approval of the Attorney General of the State of Texas, registration by the Comptroller of Public Accounts of the State of Texas and registration with, and initial exchange or transfer by, the Paying Agent/Registrar. b) After registration by the Comptroller of Public Accounts, delivery of the Certificates shall be made to the Underwriter or a representative thereof under and subject to the general supervision and direction of the Mayor, against receipt by the Town of all amounts due to the Town under the terms of sale. c) In the event the Mayor or Town Secretary is absent or otherwise unable to execute any document or take any action authorized herein, the Mayor Pro Tem and the Assistant Town Secretary, respectively, shall be authorized to execute such documents and take such actions, and the performance of such duties by the Mayor Pro Tem and the Assistant Town Secretary shall for the purposes of this Ordinance have the same force and effect as if such duties were performed by the Mayor and Town Secretary, respectively. Section 7.03. Deposit of Proceeds a) First: All amounts received on the Closing Date as accrued interest on the Certificates from the Certificate Date to the Closing Date shall be deposited to the Interest and Sinking Fund. b) Second: Proceeds of the Certificates in the amount of $_______________shall be deposited to a special account of the Town, such moneys to be dedicated and used solely for the purposes for which the Certificates are being issued as herein provided in Section 3.01(i). Town Council Page 328 of 522 Meeting Date: Monday, April 7, 2014 c) Third: Premium received on the Certificates in the amount of $________ shall be used to pay the cost of issuing the Certificates. To the extent any of such amount is not used for such purposes, such excess shall be deposited to the Interest and Sinking Fund. ARTICLE VIII INVESTMENTS Section 8.01. Investments a) Money in the Interest and Sinking Fund created by this Ordinance, at the option of the Town, may be invested in such securities or obligations as permitted under applicable law. b) Any securities or obligations in which such money is so invested shall be kept and held in trust for the benefit of the Owners and shall be sold and the proceeds of sale shall be timely applied to the making of all payments required to be made from the fund from which the investment was made. Section 8.02. Investment Income a) Interest and income derived from investment of the Interest and Sinking Fund be credited to such fund. b) Interest and income derived from investment of the funds to be deposited pursuant to Section 7.03(b) hereof shall be credited to the account where deposited until the acquisition or construction of said projects is completed and thereafter, to the extent such interest and income are present, such interest and income shall be deposited to the Interest and Sinking Fund. ARTICLE IX PARTICULAR REPRESENTATIONS AND COVENANTS Section 9.01. Payment of the Certificates On or before each Interest Payment Date for the Certificates and while any of the Certificates are outstanding and unpaid, there shall be made available to the Paying Agent/Registrar, out of the Interest and Sinking Fund, money sufficient to pay such interest on and principal of, redemption premium, if any, and interest on the Certificates as will accrue or mature on the applicable Interest Payment Date, maturity date and, if applicable, on a date of prior redemption. Section 9.02. Other Representations and Covenants a) The Town will faithfully perform, at all times, any and all covenants, undertakings, stipulations, and provisions contained in this Ordinance and in each Certificate; the Town will promptly pay or cause to be paid the principal of, redemption premium, if any, and interest on each Certificate on the dates and at the places Town Council Page 329 of 522 Meeting Date: Monday, April 7, 2014 and manner prescribed in such Certificate; and the Town will, at the times and in the manner prescribed by this Ordinance, deposit or cause to be deposited the amounts of money specified by this Ordinance. b) The Town is duly authorized under the laws of the State of Texas to issue the Certificates; all action on its part for the creation and issuance of the Certificates has been duly and effectively taken; and the Certificates in the hands of the Owners thereof are and will be valid and enforceable obligations of the Town in accordance with their terms. Section 9.03. Provisions Concerning Federal Income Tax Exclusion The Town intends that the interest on the Certificates shall be excludable from gross income for federal income taxation pursuant to sections 103 and 141 through 150 of the Internal Revenue Code of 1986, as amended (the “Code”) and the applicable regulations promulgated thereunder (the “Regulations”). The Town covenants and agrees not to take any action, or knowingly omit to take any action within its control, that if taken or omitted, respectively, would cause the interest on the Certificates to be includable in gross income, as defined in Section 61 of the Code of the holders thereof for purposes of federal income taxation. In particular, the Town covenants and agrees to comply with each requirement of Sections 9.03 through 9.10, inclusive; provided, however, that the Town shall not be required to comply with any particular requirement of this Sections 9.03 through 9.10 of the holders thereof for purposes of federal income taxation, if the Town has received an opinion of nationally recognized bond counsel (“Counsel’s Opinion”) that such noncompliance will not adversely affect the exclusion from gross income for federal income tax purposes of interest on the Certificates or if the Town has received a Counsel’s Opinion to the effect that compliance with some other requirement set forth in this Sections 9.03 through 9.10, inclusive, will satisfy the applicable requirements of the Code and the Regulations, in which case compliance with such other requirement specified in such Counsel’s Opinion shall constitute compliance with the corresponding requirement specified in Sections 9.03 through 9.10, inclusive. Section 9.04. No Private Use or Payment and No Private Loan Financing The Town shall certify, through an authorized officer, employee or agent, that, based upon all facts and estimates known or reasonably expected to be in existence on the date the Certificates are delivered, that the proceeds of the Certificates will not be used in a manner that would cause the Certificates to be “private activity bonds” within the meaning of Section 141 of the Code and the Regulations. The Town covenants and agrees that it will make such use of the proceeds of the Certificates, including interest or other investment income derived from Certificate proceeds, regulate the use of property financed, directly or indirectly, with such proceeds, and take such other and further action as may be required so that the Certificates will not be “private activity bonds” within the meaning of Section 141 of the Code and the Regulations. Town Council Page 330 of 522 Meeting Date: Monday, April 7, 2014 Section 9.05. No Federal Guaranty The Town covenants and agrees not to take any action, or knowingly omit to take any action, and has not knowingly omitted and will not knowingly omit to take any action within its control, that, if taken or omitted, respectively, would cause the Certificates to be “federally guaranteed” within the meaning of Section 149(b) of the Code and the Regulations, except as permitted by Section 149(b)(3) of the Code and the Regulations. Section 9.06. Certificates are not Hedge Certificates The Town covenants and agrees that it has not taken and will not take any action, and has not knowingly omitted and will not knowingly omit to take any action within its control, that, if taken or omitted, respectively, would cause the Certificates to be “hedge bonds” within the meaning of Section 149(g) of the Code and the Regulations. Section 9.07. No-Arbitrage Covenant The Town shall certify, through an authorized officer, employee or agent, that, based upon all facts and estimates known or reasonably expected to be in existence on the date the Certificates are delivered, the Town will reasonably expect that the proceeds of the Certificates will not be used in a manner that would cause the Certificates to be “arbitrage bonds” within the meaning of Section 148(a) of the Code and the Regulations. Moreover, the Town covenants and agrees that it will make such use of the proceeds of the Certificates, including interest or other investment income derived from Certificate proceeds, regulate investments of proceeds of the Certificates, and take such other and further action as may be required so that the Certificates will not be “arbitrage bonds” within the meaning of Section 148(a) of the Code and the Regulations. Section 9.08. Arbitrage Rebate If the Town does not qualify for an exception to the requirements of Section 148(f) of the Code, the Town will take all necessary steps to comply with the requirement that certain amounts earned by the Town on the investment of the “gross proceeds” of the Certificates (within the meaning of Section 148(f)(6)(B) of the Code), be rebated to the federal government. Specifically, the Town will (i) maintain records regarding the investment of the gross proceeds of the Certificates as may be required to calculate the amount earned on the investment of the gross proceeds of the Certificates separately from records of amounts on deposit in the funds and accounts of the Town allocable to other issues of the Town or moneys which do not represent gross proceeds of any issues of the Town, (ii) calculate at such times as are required by the Regulations the amount earned from the investment of the gross proceeds of the Certificates which is required to be rebated to the federal government, and (iii) pay, not less often than every fifth anniversary date of the delivery of the Certificates or on such other dates as may be permitted under the Regulations, all amounts required to be rebated to the federal government. Further, the Town will not indirectly pay any amount otherwise payable to the federal government pursuant to the foregoing requirements to any person other than Town Council Page 331 of 522 Meeting Date: Monday, April 7, 2014 the federal government by entering into any investment arrangement with respect to the gross proceeds of the Certificates that might result in a reduction in the amount required to be paid to the federal government because such arrangement results in a smaller profit or a larger loss than would have resulted if the arrangement had been at arm’s length and had the yield on the issue not been relevant to either party. Section 9.09. Information Reporting The Town covenants and agrees to file or cause to be filed with the Secretary of the Treasury, not later than the 15th day of the second calendar month after the close of the calendar quarter in which the Certificates are issued, an information statement concerning the Certificates, all under and in accordance with Section 149(e) of the Code and the Regulations. Section 9.10. Continuing Obligation Notwithstanding any other provision of this Ordinance, the Town’s obligations under the covenants and provisions of Sections 9.03 through 9.09, inclusive, shall survive the defeasance and discharge of the Certificates. Section 9.11. QUALIFIED TAX-EXEMPT OBLIGATIONS The Town hereby designates the Certificates as “qualified tax-exempt obligations” for purposes of Section 265(b) of the Code. In connection therewith, the Town represents (a) that the aggregate amount of tax-exempt obligations issued by the Town during calendar year 2013, including the Certificates, which have been designated as “qualified tax-exempt obligations” under Section 265(b)(3) of the Code does not exceed $10,000,000, and (b) that the reasonably anticipated amount of its tax-exempt obligations which will be issued by the Town during calendar year 2014, including the Certificates, will not exceed $10,000,000. For purposes of this Section 9.11, the term “tax-exempt obligations” does not include “private activity bonds” within the meaning of Section 141 of the Code, other than “qualified 501(c)(3) bonds” within the meaning of Section 145 of the Code. In addition, for purposes of this Section 9.11, the Town includes all governmental units which are aggregate with the Town under Section 265(b) of the Code. ARTICLE X DEFAULT AND REMEDIES Section 10.01. Events of Default Each of the following occurrences or events for the purpose of this Ordinance is hereby declared to be an Event of Default: (i) the failure to make payment of the principal of, redemption premium, if any, or interest on any of the Certificates when the same becomes due and payable; or Town Council Page 332 of 522 Meeting Date: Monday, April 7, 2014 (ii) default in the performance or observance of any other covenant, agreement, or obligation of the Town, which default materially and adversely affects the rights of the Owners, including but not limited to their prospect or ability to be repaid in accordance with this Ordinance, and the continuation thereof for a period of sixty (60) days after notice of such default is given by any Owner to the Town. Section 10.02. Remedies for Default a) Upon the happening of any Event of Default, then any Owner or an authorized representative thereof, including but not limited to a trustee or trustees therefor, may proceed against the Town for the purpose of protecting and enforcing the rights of the Owners under this Ordinance by mandamus or other suit, action or special proceeding in equity or at law in any court of competent jurisdiction for any relief permitted by law, including the specific performance of any covenant or agreement contained herein, or thereby to enjoin any act or thing that may be unlawful or in violation of any right of the Owners hereunder or any combination of such remedies. b) It is provided that all such proceedings shall be instituted and maintained for the equal benefit of all Owners of Certificates then outstanding. Section 10.03. Remedies Not Exclusive a) No remedy herein conferred or reserved is intended to be exclusive of any other available remedy, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or under the Certificates or now or hereafter existing at law or in equity; provided, however, that notwithstanding any other provision of this Ordinance, the right to accelerate the debt evidenced by the Certificates shall not be available as a remedy under this Ordinance. b) The exercise of any remedy herein conferred or reserved shall not be deemed a waiver of any other available remedy. ARTICLE XI DISCHARGE Section 11.01. Discharge The Certificates may be defeased, discharged or refunded in any manner permitted by applicable law. Town Council Page 333 of 522 Meeting Date: Monday, April 7, 2014 ARTICLE XII CONTINUING DISCLOSURE UNDERTAKING Section 12.01. Annual Reports (i) The Town shall provide annually to the MSRB, within six (6) months after the end of each fiscal year, financial information and operating data with respect to the Town of the general type included in the final Official Statement, being the information described in Exhibit A hereto. Any financial statements so to be provided shall be (i) prepared in accordance with the accounting principles described in Exhibit A (ii) If the Town changes its fiscal year, it will notify the MSRB of the change (and of the date of the new fiscal year end) prior to the next date by which the Town otherwise would be required to provide financial information and operating data pursuant to this Section. hereto, and (ii) audited, if the Town commissions an audit of such statements and the audit is completed within the period during which they must be provided, and (iii) submitted through the EMMA, in an electronic format with accompanying identifying information, as prescribed by the MSRB. If the audit of such financial statements is not complete within such period, then the Town shall provide notice that audited financial statements are not available and shall provide unaudited financial statements for the applicable fiscal year to the MSRB. The Town shall provide audited financial statements for the applicable fiscal year to the MSRB when and if audited financial statements become available. (iii) The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific referenced to any document (including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to the MSRB or filed with the SEC. Section 12.02. Material Event Notices a) The Town shall notify the MSRB, in a timely manner not in excess of ten (10) Business Days after the occurrence of the event, of any of the following events with respect to the Certificates: (i) Principal and interest payment delinquencies; (ii) Non-payment related defaults, if material; (iii) Unscheduled draws on debt service reserves reflecting financial difficulties; (iv) Unscheduled draws on credit enhancements reflecting financial difficulties; (v) Substitution of credit or liquidity providers, or their failure to perform; Town Council Page 334 of 522 Meeting Date: Monday, April 7, 2014 (vi) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Certificates, or other material events affecting the tax status of the Certificates; (vii) Modifications to rights of holders of the Certificates, if material; (viii) Certificate calls, if material, and tender offers; (ix) Defeasances; (x) Release, substitution, or sale of property securing repayment of the Certificates, if material; (xi) Rating changes; (xii) Bankruptcy, insolvency, receivership or similar event of the Town; 1 (xiii) The consummation of a merger, consolidation, or acquisition involving the Town or the sale of all or substantially all of the assets of the Town, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (xiv) Appointment of a successor Paying Agent/Registrar or change in the name of the Paying Agent/Registrar, if material. b) The Town shall provide to the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner, notice of a failure by the Town to provide required annual financial information and notices of material events in accordance with Sections 12.01 and 12.02. All documents provided to the MSRB pursuant to this Section shall be accompanied by identifying information as prescribed by the MSRB. Section 12.03. Limitations, Disclaimers and Amendments a) The Town shall be obligated to observe and perform the covenants specified in this Article for so long as, but only for so long as, the Town remains an “obligated 1 For the purposes of the event identified in (xii), the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person. Town Council Page 335 of 522 Meeting Date: Monday, April 7, 2014 person” with respect to the Certificates within the meaning of the Rule, except that the Town in any event will give notice of any redemption calls and any defeasances that cause the Town to be no longer an “obligated person.” b) The provisions of this Article are for the sole benefit of the Owners and beneficial owners of the Certificates, and nothing in this Article, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The Town undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Article and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the Town’s financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Article or otherwise, except as expressly provided herein. The Town does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Certificates at any future date. UNDER NO CIRCUMSTANCES SHALL THE TOWN BE LIABLE TO THE OWNER OR BENEFICIAL OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE TOWN, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS ARTICLE, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. c) No default by the Town in observing or performing its obligations under this Article shall constitute a breach of or default under the Ordinance for purposes of any other provisions of this Ordinance. d) Nothing in this Article is intended or shall act to disclaim, waive, or otherwise limit the duties of the Town under federal and state securities laws. e) The provisions of this Article may be amended by the Town from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the Town, but only if (i) the provisions of this Article, as so amended, would have permitted an underwriter to purchase or sell Certificates in the primary offering of the Certificates in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (ii) either (A) the Owners of a majority in aggregate principal amount (or any greater amount required by any other provisions of this Ordinance that authorizes such an amendment) of the Outstanding Certificates consent to such amendment or (B) an entity or individual person that is unaffiliated with the Town (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the Owners and beneficial owners of the Certificates. If the Town so amends Town Council Page 336 of 522 Meeting Date: Monday, April 7, 2014 the provisions of this Article, it shall include with any amended financial information or operating data next provided in accordance with Section 12.01 an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in type of financial information or operating data so provide. ARTICLE XIII AMENDMENTS Section 13.01. Amendments This Ordinance shall constitute a contract with the Owners, be binding on the Town, and shall not be amended or repealed by the Town so long as any Certificate remains outstanding except as permitted in this Section. The Town may, without consent of or notice to any Owners, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Owners, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the Town may, with the written consent of the Owners of the Certificates holding a majority in aggregate principal amount of the Certificates then outstanding, amend, add to, or rescind any of the provisions of this Ordinance; provided that, without the consent of all Owners of outstanding Certificates, no such amendment, addition, or rescission shall (i) extend the time or times of payment of the principal of and interest on the Certificates, reduce the principal amount thereof, the redemption price, or the rate of interest thereon, or in any other way modify the terms of payment of the principal of or interest on the Certificates, (ii) give any preference to any Certificate over any other Certificate, or (iii) reduce the aggregate principal amount of Certificates required to be held by Owners for consent to any such amendment, addition, or rescission. ARTICLE XIV MISCELLANEOUS Section 14.01. Changes to Ordinance The Mayor and Director of Finance, in consultation with Bond Counsel, are hereby authorized to make changes to the terms of this Ordinance if necessary or desirable to carry out the purposes hereof or in connection with the approval of the issuance of the Certificates by the Attorney General of Texas. Section 14.02 Partial Invalidity If any section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of the Ordinance. Town Council Page 337 of 522 Meeting Date: Monday, April 7, 2014 Section 14.03. No Personal Liability. No recourse shall be had for payment of the principal of or interest on any Certificates or for any claim based thereon, or on this Ordinance, against any official or employee of the Town or any person executing any Certificates. ARTICLE XV EFFECTIVENESS Section 15.01. Effectiveness This Ordinance shall take effect immediately from and after its passage. Town Council Page 338 of 522 Meeting Date: Monday, April 7, 2014 APPROVED AND ADOPTED this April 7, 2014. _______________________________ Mayor, Town of Trophy Club, Texas ATTEST: ____________________________________ Town Secretary, Town of Trophy Club, Texas APPROVED AS TO FORM: By: __________________________________ Town Attorney By: __________________________________ Town Bond Counsel Town Council Page 339 of 522 Meeting Date: Monday, April 7, 2014 EXHIBIT A DESCRIPTION OF ANNUAL DISCLOSURE OF FINANCIAL INFORMATION The following information is referred to in Article XII of this Ordinance. Annual Financial Statements and Operating Data The financial information and operating data with respect to the Town to be provided annually in accordance with such Section are as specified (and included in the Appendix or other headings of the Official Statement referred to) below: 1. The portions of the financial statements of the Town appended to the Official Statement as Appendix B, but for the most recently concluded fiscal year. 2. Statistical and financial data set forth in Tables 1, 2, 3, 9, 10, 12, 13, 14 and 20 of Appendix A. Accounting Principles The accounting principles referred to in such Section are the accounting principles described in the notes to the financial statements referred to in Paragraph 1 above. Town Council Page 340 of 522 Meeting Date: Monday, April 7, 2014 Embedded Secure Document The file https://trophyclub.legistar.com/View.ashx?M=F&ID=2955589&GUID=0C73D95A-9729-4D59-A191- 8A3AEE90AC30 is a secure document that has been embedded in this document. Double click the pushpinto view. Town Council Page 341 of 522 Meeting Date: Monday, April 7, 2014 Embedded Secure Document The file https://trophyclub.legistar.com/View.ashx?M=F&ID=2955590&GUID=731602F6-1F54-4FBA-92BC- 771B0EF1404E is a secure document that has been embedded in this document. Double click the pushpinto view. Town Council Page 342 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1030-T Name: Status:Type:Agenda Item Regular Session File created:In control:3/20/2014 Town Council On agenda:Final action:4/7/2014 Title:Consider and take appropriate action regarding the acceptance of the Audit for the Town of Trophy Club, Fiscal Year 2012-2013. Attachments:Staff Report - Fiscal Year 2013 Audit.pdf Town of Trophy Club 2013 Government Auditing Standards Report.pdf 2013 CAFR - Final.pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding the acceptance of the Audit for the Town of Trophy Club, Fiscal Year 2012-2013. Town Council Page 343 of 522 Meeting Date: Monday, April 7, 2014 To: Mayor and Town Council From: Steven Glickman, Director of Finance CC: Mike Slye, Town Manager Tammy Ard, Town Secretary Re: Fiscal Year 2013 Audit Town Council Meeting, April 7, 2014 Agenda Item: Consider and take appropriate action regarding the acceptance of the Audit. Explanation: The auditor firm of Weaver and Tidwell, LLP, an independent firm of Certified Public Accountants, have completed an audit of the Town Financial Statements of the governmental activities, business-type activities, aggregate discretely presented component units, each major fund, aggregate remaining fund information, and the related notes to the financial statements for the Year Ended September 30, 2013. Management of the Town is responsible for the preparation and fair presentation of the financial statements in accordance with U.S. generally accepted accounting principles to include the design, implementation, and maintenance of an internal control environment conducive to the fair presentation of financial statements that are free of material misstatement. The responsibility of the auditors is to express an opinion on the financial statements based on their audit, which was conducted in accordance with U.S. generally accepted auditing standards. The auditors issued an unmodified (clean) opinion, meaning that the financial statements of the Town are presented fairly, in all material respects. In addition to the opinion rendered, the auditors found no significant deficiencies in regard to internal control over financial reporting and on compliance and other matters for the first time in the Town’s brief history. Additionally, the Finance Department has completed and submitted to the Government Finance Officers Association a Comprehensive Annual Financial Report (CAFR) for consideration for the Certificate of Achievement for Excellence in Financial Reporting, which is the highest honor a government can receive for financial reporting. The Town has received the award the past three years and we believe the current CAFR continues to meet the program’s rigorous standards. Attachments: • 2013 Government Auditing Standards Report • Comprehensive Annual Financial Report (CAFR) Town Council Page 344 of 522 Meeting Date: Monday, April 7, 2014 Town Council Goals: Goal #1: Safe and secure community. Maintain low crime rate Increase citizen awareness and involvement in crime prevention Provide superior Emergency Services Improve data security Goal #2: Business-Friendly Economic Development Create effective working relationships with businesses and developers Retain / Develop existing businesses Promote new commercial opportunities Goal # 3: Strong Partnerships and Community Involvement Create a positive regional identity Foster a well informed community Forge collaborative relationships with other governmental and public entities Support citizen volunteer opportunities Promote recreational / active lifestyle opportunities for all ages Goal #4: Healthy, Picturesque, and Environmentally Sound Promote recreational / active lifestyle opportunities for all ages Maintain neat and tidy appearance Improve property maintenance standards and code enforcement Develop / Enhance environmental and sustainability standards and programs Goal #5: Financial and Operational Stewardship Develop, recognize, and retain quality staff Implement strong financial management standards Improve effectiveness and efficiency of operational processes Maintain / Improve infrastructure and assets Provide cost-effective services Deliver responsible customer service Recommendation: Staff recommends acceptance of the Fiscal Year 2013 Audit. Town Council Page 345 of 522 Meeting Date: Monday, April 7, 2014 To the Members of the Town Council and the Honorable Mayor Town of Trophy Club Trophy Club, Texas We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the Town of Trophy Club, Texas (the Town), as of and for the year ended September 30, 2013, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements and have issued our report thereon dated March 28, 2014. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Town’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Town ’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Town Council Page 346 of 522 Meeting Date: Monday, April 7, 2014 However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. WEAVER AND TIDWELL, L.L.P. Dallas, Texas March 28, 2014 Town Council Page 347 of 522 Meeting Date: Monday, April 7, 2014 Town of Trophy Club, Texas Comprehensive Annual Financial Report For the fiscal year ending September 30, 2013 Town Council Page 348 of 522 Meeting Date: Monday, April 7, 2014 Town Council Page 349 of 522 Meeting Date: Monday, April 7, 2014 TOWN OF TROPHY CLUB, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED SEPTEMBER 30, 2013 As Prepared By The FINANCE DEPARTMENT Town Council Page 350 of 522 Meeting Date: Monday, April 7, 2014 Town Council Page 351 of 522 Meeting Date: Monday, April 7, 2014 Page I.INTRODUCTORY SECTION Letter of Transmittal i Certificate of Achievement vi Organization Structure vii Elected Officials, Appointed Officials and Key Staff viii II.FINANCIAL SECTION Independent Auditor’s Report 1 A.MANAGEMENT'S DISCUSSION AND ANALYSIS 5 B.BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Position 15 Statement of Activities 16 Fund Financial Statements Governmental Funds Financial Statements Balance Sheet 18 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 20 Statement of Revenues, Expenditures, and Changes in Fund Balances 22 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 24 Proprietary Funds Financial Statements Statement of Net Position 25 Statement of Revenues, Expenses, and Changes in Net Position 26 Statement of Cash Flows 27 Fiduciary Fund Financial Statements Statement of Fiduciary Net Position - Agency Fund 28 Discretely Presented Component Units Combining Statement of Net Position 29 Combining Statement of Activities 30 Notes to the Basic Financial Statements 31 C.REQUIRED SUPPLEMENTARY INFORMATION Texas Municipal Retirement System - Schedule of Funding Progress 56 Retiree Health Plan - Schedule of Funding Progress 57 Budgetary Comparison Schedule - General Fund 58 Notes to Required Supplementary Information 59 TOWN OF TROPHY CLUB, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 TABLE OF CONTENTS Town Council Page 352 of 522 Meeting Date: Monday, April 7, 2014 Table Page D.COMBINING AND BUDGETARY COMPARISON SCHEDULES Major Governmental Funds Budgetary Comparison Schedule - Debt Service Fund 62 Nonmajor Governmental Funds Combining Balance Sheet 64 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 66 Fidicuary Funds Statement of Changes in Agency Assets and Liabilities 69 Discretely Presented Component Units Budgetary Comparison Schedule-4A Econcomic Development Fund 71 Budgetary Comparison Schedule-4B Econcomic Development Fund 72 III.STATISTICAL SECTION Table of Contents 74 Net Position By Component 1 75 Changes in Net Position 2 76 Fund Balances, Governmental Funds 3 78 Changes in Fund Balances, Governmental Funds 4 80 Assessed Value and Estimated Actual Value of Taxable Property 5 82 Direct and Overlapping Property Tax Rates 6 84 Principal Property Tax Payers 7 86 Ad Valorem Tax Levies and Collections 8 87 Ratios of Outstanding Bonded Debt by Type 9 88 Ratios of General Bonded Debt Outstanding 10 89 Direct and Overlapping Debt 11 90 Demographic and Economic Statistics 12 91 Principal Employers 13 92 Full-Time City Government Employees by Function/Program 14 93 Operating Indicators by Function/Program 15 94 Town Council Page 353 of 522 Meeting Date: Monday, April 7, 2014 ________________________________________________________________________ March 31, 2014 Honorable Mayor, Members of the Town Council, And the Citizens of the Town of Trophy Club, Texas The Town’s Finance Department has prepared a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) which were audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. The Comprehensive Annual Financial Report (CAFR) for the Town of Trophy Club, Texas for the fiscal year ended September 30, 2013, is hereby issued. This report consists of management’s representations concerning the finances of the Town. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making the representations, management of the Town has established a comprehensive internal control framework that is designed both to protect the Town’s assets from loss, theft, or misuse and to compile sufficient and reliable information for the preparation of the Town’s financial statements in conformity with GAAP. Internal controls should not outweigh their benefits; therefore, the Town’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute assurance, that the financial statements are free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The Town’s financial records have been audited by Weaver LLP, Certified Public Accountants, as required by the Town Charter. This CAFR has been prepared based upon those audited records. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Town are presented fairly, in all material respects, for the fiscal year ended September 30, 2013. This independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the Town’s financial statements for the fiscal year ended September 30, 2013, are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Town’s MD&A can be found immediately following the report of the independent auditor. Profile of the Town The Town of Trophy Club, Texas incorporated in 1985 as Texas’ first premiere master planned community, is located in the North Central portion of Texas. This area of the State has proven to be one of the top Town Council Page 354 of 522 Meeting Date: Monday, April 7, 2014 growth areas in Texas and the United States. The Town currently occupies a land area of just over 4 square miles and serves a growing population of approximately 10,500. The Town is empowered to levy a property tax on real property located within its boundaries. Trophy Club is also empowered, by State statute, to extend its corporate limits by annexation, which has occurred periodically when deemed appropriate by the governing council of the Town. Trophy Club has operated as a Home Rule municipality utilizing the Council-Manager form of government since 2004. With the Charter Amendments passed at the May 11, 2013 election policy-making and legislative authority are vested in the Town Council consisting of the Mayor and six other council members. The Town Council is responsible for, among other things, passing ordinances, adopting the budget, appointing boards and committees, and hiring the Town Manager, Town Secretary, Municipal Judge, and Town Attorney. The Town Council is elected on a non-partisan basis. With the Charter Amendments passed at the May 9, 2009 election, Council members are elected from the Town at-large-by-place in the manner, for a term of three (3) years or until their successors have been elected and take office. Each Council member shall be elected to and occupy a place on the Council, such Places being numbered (e.g., Place 1, Place 2, Place 3, etc.). No person shall serve as Mayor or Council member for successive elected full terms totaling more than six years. The Town Manager is responsible for carrying out the policies and ordinances of the Town Council, overseeing the day-to-day operations of the government and for appointing the heads of the various Town departments. The Town of Trophy Club provides a full range of municipal services including general government, public safety (police and EMS), streets, parks and recreation, planning and zoning, code enforcement, and drainage utilities. Water/wastewater and Fire protection are provided through the Municipal Utility District. Local Economy Fast-paced growth is one of the Town’s identifying characteristics, identified by both the Dallas Business Journal and Fort Worth Builders Association. Trophy Club’s location between DFW and Alliance Airports is ideal for businesses and residents, as well as those who commute to Dallas, Denton, Las Colinas, and Fort Worth. Trophy Club maintains a small-town, picturesque feel while taking advantage of nearby metro areas. The Town offers an outstanding quality of life, with great educational and recreational amenities as well as two 18-hole premier golf courses including the only course designed by Ben Hogan. The North Texas region possesses diverse research and education institutions, logistics, oil and gas, manufacturing and industrial, and a professional services base that has contributed to the relative stability of the unemployment rate with approximately half of the local workforce employed in management, professional, and related occupations. Figures from the Texas Workforce Commission indicate a Denton County unemployment rate of 4.8% while the national unemployment rate is 6.6%. Trophy Club has worked diligently to position itself for a significant future within DFW and the Alliance corridor. The Town has issued over 1,000 building permits for high end homes over the past 5 years, with another 268 building permits anticipated for Fiscal Year 2014. Additionally, the Town’s tax base exceeded $1 billion net taxable value in 2013. Business growth continues to be strong in Trophy Club and the Highway 114 region. The Town directly benefits from those businesses locating within the Town or professionals moving to our neighborhoods who work at nearby corporations. Long-Term Financial Planning During the fiscal year 2013 budget cycle, the Town Council and staff developed a long term financial plan that would alter the current sales tax distribution in order to fund capital projects without increasing the existing debt service rate. Town Council Page 355 of 522 Meeting Date: Monday, April 7, 2014 The first step was the adoption of a debt service rate that maintained the current 11.5 cent level. In order to maintain that rate, and in preparation for future capital needs, the Town issued $500,000 in tax notes to go towards facility planning, land purchases, and future Town facility design in September 2012. The second step was to reallocate ¼ cent from Economic Development Corporation 4A (EDC4A) to the Economic Development Corporation 4B (EDC4B) for additional economic development. The reallocation was approved by a majority of citizens in November 2012. After the election, the Council appointed a temporary board for a Crime Control and Prevention District (CCPD) to develop a budget to submit to voters in May of 2013 to reallocate the remaining ¼ cent from EDC4A to a Crime Control Prevention District (CCPD). Additionally, on January 14, 2013, the Town called $880,000 in GO Bonds which will yield an economic gain of approximately $220,000. On August 30, 2013, the Town defeased $236,000 in Certificates of Obligation and $265,000 in Tax Notes resulting in an economic gain of $11,477. These actions coupled with the Town’s strong growth and increased debt capacity will provide the Town increased flexibility for funding future capital needs. In FY 2013 the Town issued Certificates of Obligation, Series 2013 in the amount of $3,000,000 related to street reconstruction and drainage improvements. A portion of Indian Creek Drive, a major thoroughfare, is scheduled to begin reconstruction in the Spring of 2014. In addition, two storm drainage projects will begin while engineering for a third project will be nearing completion in anticipation of projected construction in the Spring of 2014. Budgeting Process The Town of Trophy Club uses a program-based budgeting process. Each budgeting unit or division is given a target or “baseline” funding level based upon the previous year’s funding level. With a few exceptions, no capital assets, wages and benefits, or one-time packages are included in baseline funding. Any funding request that represents new expenditures and programs, or that is in excess of baseline funding, must be submitted as a separate request or “package.” These packages may be either a new or restoration request for resources, depending upon the budgeting unit’s funding target. Revenue Projection The budget revenue projections for the new fiscal year begin early in the current fiscal year. The projections are made by the departments responsible for the revenues with help from the Finance staff. Projections are based upon consultations with state and local agencies, trend analysis, anticipated changes in the local and regional economy, and discussions with directly associated staff members. Although revenue projections are prepared early in the budget process, the budget revenue analysis continues with departmental budget development and extends until the budget is adopted based upon any new information. Proposed Budget Analysis/Compilation The Finance Department reviews and compiles a preliminary draft of departmental budgets to present to the Budget Team, which is comprised of the Town Manager, Assistant Town Manager, Director of Finance, and Budget Analyst. During Budget Team discussions, each department director answers questions from the entire group concerning their budget. Given revenue projections and baseline funding requirements, budget funding changes are made according to necessity and priority. A total recommended funding level is determined and is weighed against available resources. Proposed Budget Development The Town Manager, no later than July 31 each year (Charter Section 9.02), shall prepare and submit to the Town Secretary, the annual budget covering the next fiscal year. The Town Manager’s proposed budget should assume, for each fund, operating revenues and resources that are equal to, Town Council Page 356 of 522 Meeting Date: Monday, April 7, 2014 or exceed operating expenditures. The Town Manager’s budget message summarizes funding requirements, major changes in programs, and alternatives for funding. Town Council Budget Study A budget work session is held with the Town Council to review and discuss the proposed budget. Discussions and study may follow at subsequent work sessions up until budget adoption. Capital Program The Town Manager shall prepare and submit to the Council a five (5) year capital program no later than three months before the final date for submission of the budget. The capital program shall be revised and extended each year with regard to capital improvements still pending or in process of construction or acquisition (Charter Section 9.08). Public Hearing/Budget Adoption A public hearing on the proposed budget and two public hearings on the tax rate are held in August and September prior to final budget consideration. At the public hearings, citizens may make formal comments concerning the proposed budget. The public also has the opportunity to attend Town Council budget work sessions in August and September. Budget adoption occurs in September after Town Council deliberations and the public hearings. The Town Council adopts a tax rate to support adopted funding levels. Pursuant to Town Charter, the budget in place for the preceding year shall remain in place on a month-to-month basis until such time as a new budget has been adopted if no Town Council action is taken before the end of the fiscal year, September 30. Compilation of Adopted Budget/Budget Maintenance The adopted budget is compiled and published during the first months of the new fiscal year. The adopted budget in the form of an amended proposed budget is available for public inspection in October. Ledger accounts are prepared for the new fiscal year prior to October 1. Budget maintenance is a year-round activity of divisions/departments and Finance Department staff. Other spending control mechanisms include monthly review of expenditures by Finance Department staff. During the budget process, departments make revenue and expenditure estimates for the current year. Finally, program goals, objectives, and measures are evaluated during budget implementation to determine the effectiveness of program activities and levels of appropriate funding for subsequent years. Relevant Financial Policies During Fiscal Year 2010, the Town established a Cash Management Program and Policy for the purpose of ensuring adequate internal controls to account for the handling of Town cash and to maintain public trust. Staff also created the Town’s Investment Policy. The purpose of the investment policy was to comply with Chapter 2256 of the Government Code (“Public Funds Investment Act”), which requires the Town of Trophy Club to adopt a written investment policy regarding the investment of its funds and funds under its control. The Investment Policy addresses the methods, procedures, and practices that must be exercised to ensure effective and judicious fiscal management of Trophy Club’s funds. The investment policy received the Government Treasurers’ of Texas Certificate of Distinction for Investment Policy in June 2011. Town Council Page 357 of 522 Meeting Date: Monday, April 7, 2014 The Town Council adopted a fund balance policy in September 2011 which established new fund balance categories (as recommended by Statement No. 54 by the Governmental Accounting Standards Board) and established a minimum unassigned fund balance goal (30% of annual operating expenditures). In December 2013, Town Council adopted a debt management policy in order to provide parameters for the issuance and management of debt used to construct or acquire major capital assets. Major Initiatives The Town Council has continued its strategic planning process to identify goals and objectives for long range planning. Each year, the Council meets in strategic planning retreats to review and refine those goals. Management Team members utilize the strategic planning documents to help guide their budget planning and service/program implementation. The Town recently completed Vision Trophy Club which was a citizen committee tasked with planning the next 20 years. It is anticipated that an updated Comprehensive Plan primarily focused on redevelopment will occur within the next two years. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Trophy Club for its CAFR for the fiscal year ended September 30, 2012. This was the third consecutive year that the Town has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized CAFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report could not be accomplished without the dedicated services of the entire staff of the Finance Department. We would also like to express our appreciation to all staff members who assisted and contributed to the preparation of this report. Acknowledgement is also given to representatives of Weaver, LLP, Certified Public Accountants. Special acknowledgement is given to the Mayor and the members of the Town Council for their support for maintaining the highest standards of professionalism in the management of the Town of Trophy Club finances. Respectively submitted, Mike Slye Steven Glickman Town Manager Director of Finance Town Council Page 358 of 522 Meeting Date: Monday, April 7, 2014 Town Council Page 359 of 522 Meeting Date: Monday, April 7, 2014 Town Council Page 360 of 522 Meeting Date: Monday, April 7, 2014 ELECTED OFFICIALS Mayor Connie White Mayor Pro Tem Jeannette Tiffany Council Member Bill Rose Council Member Danny Mayer Council Member Greg Lamont Council Member Phillip Shoffner APPOINTED OFFICIALS Town Manager Mike Slye Town Attorney Patricia Adams Town Secretary/HR Manager Tammy Ard Municipal Judge Honorable Mark Chambers KEY STAFF Assistant Town Manager Stephen Seidel Community Development Director Carolyn Huggins Emergency Medical Services & Fire Chief Danny Thomas Finance Director Steven Glickman Information Systems Director Mike Pastor Parks & Recreation Director Adam Adams Police Chief Scott Kniffen Public Information Officer/Marketing Manager April Reiling Streets Director Ed Helton Town Council Page 361 of 522 Meeting Date: Monday, April 7, 2014 INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor, Town Council, and Town Manager Town of Trophy Club, TX Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the Town of Trophy Club (the Town), as of and for the year ended September 30, 2013, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Town Council Page 362 of 522 Meeting Date: Monday, April 7, 2014 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the Town, as of September 30, 2013, 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. Emphasis of Matters As discussed in Note 14 to the financial statements, beginning fund balance of the general fund and net position of the governmental activities have been restated to correct a misstatement. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis (pages 5-11), schedules of funding progress (pages 56- 57), and budgetary comparison information (pages 58-59) be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other 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 introductory section, combining and budgetary comparison schedules, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Town Council Page 363 of 522 Meeting Date: Monday, April 7, 2014 The combining and budgetary comparison schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and budgetary comparison schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 28, 2014, on our consideration of the Town’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Town’s internal control over financial reporting and compliance. WEAVER AND TIDWELL, L.L.P. Dallas, Texas March 28, 2014 Town Council Page 364 of 522 Meeting Date: Monday, April 7, 2014 Town Council Page 365 of 522 Meeting Date: Monday, April 7, 2014 As management of the Town of Trophy Club, we offer readers of the Town’s financial statements this narrative overview and analysis of the financial activities of the Town of Trophy Club for the fiscal year ended September 30, 2013. 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 through v of this report. Financial Highlights • The assets of the Town exceeded its liabilities at the close of the fiscal year ended September 30, 2013, by $57,921,329 (net position). Of this amount, $3,127,266 (unrestricted net position) may be used to meet the government’s ongoing obligations to its citizens and creditors. • The Town’s total net position increased by $4,473,639 primarily as a result of developer contributions in the amount of $4,377,980. • The Town’s governmental funds reported combined ending fund balances of $5,021,201. • The unassigned portion of the General Fund balance at the end of the year was $2,398,330 or 31.9% of total General Fund expenditures. • The governmental long-term debt obligations of the Town decreased by $937,817 during the fiscal year. This decrease was comprised primarily of debt service principal payments and defeasances totaling $2,294,000 offset by the addition of $1,300,000 in certificates of obligation. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Town’s basic financial statements. The Town’s basic financial statements comprise three components: 1) government- wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements--The government-wide financial statements are designed to provide readers with a broad overview of the Town of Trophy Club’s finances. This is done in a manner similar to a private-sector business. Two statements, the Statement of Net Position and the Statement of Activities, are utilized to provide this financial overview. The Statement of Net Position presents information on all of the Town’s assets and liabilities with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating. 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 in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Town Council Page 366 of 522 Meeting Date: Monday, April 7, 2014 Both of the government-wide statements distinguish between governmental activities and business-type activities. Governmental activities primarily account for those activities supported by taxes and intergovernmental revenues. On the other hand, business-type activities are primarily supported by user fees and charges. Most Town services are reported in governmental activities while Proprietary Funds are reported in the business-type activities. In the above statements, the Town’s operations are presented as Governmental Activities - where most of the Town’s basic activities are reported, including police, emergency medical services, public works, court, council and administration. Normally, these operations are financed by property taxes, sales taxes, and franchise fees. The 4A Economic Development Corporation and 4B Economic Development Corporation are considered (discretely presented) component units of the Town. Their balances and activities have been combined and reported separately from those of the Town in the above statements. Fund financial statements--The Town, like other state and local governments, utilizes fund accounting to ensure and demonstrate compliance with finance-related legal requirements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. All of the funds of the Town can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds-Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Town maintains ten 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 Grant Fund, all of which are considered to be major funds. Data from the other six funds are combined into a single, aggregated presentation. Individual fund data for each of the non-major governmental funds is provided in the form of combining statements elsewhere in this report. Proprietary funds-The Town maintains two proprietary funds: the Trophy Club Park Fund and the Town Storm Drainage Fund. Proprietary funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Town uses proprietary funds to account for parks and recreation and storm water operations. Proprietary fund financial statements provide the same type of information as the government-wide financial statements only in more detail. Town Council Page 367 of 522 Meeting Date: Monday, April 7, 2014 The 4A Economic Development Corporation and 4B Economic Development Corporation are reported as discretely presented component units. Information on these component units is presented in the Statement of Net Position - Component Units and the Statement of Activities – Component Units. The Town adopts annual appropriated budgets for the general fund, debt service fund and the Trophy Club Park Enterprise Fund. Budgets for capital projects funds are adopted on a project length basis. A budgetary comparison statement is provided for each budgeted governmental fund to demonstrate compliance with its budget. Notes to the financial statements--The notes provide additional information that is essential to gain a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 31-53. Other information--In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information. Required supplementary information can be found after the notes to the financial statements on pages 56-59. Government-wide Financial Analysis At the end of fiscal year 2013, the Town’s net position (assets exceeding liabilities) totaled $57,921,329. This analysis focuses on the net position (Table 1) and changes in net position (Table 2). Net Position--The largest portion of the Town’s net position, $54,478,583 or 94.1%, reflects its net investment in capital assets (land, buildings, improvements other than buildings, machinery and equipment, construction in progress), less any related debt used to acquire those assets that is still outstanding. The Town uses these assets to provide services to its citizens; consequently, these assets are not available for future spending. Although the Town reports its capital assets net of related debt, the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. A portion of the Town’s net position, $315,480 or 0.5% represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position, $3,127,266 or 5.4% may be used to meet the government’s ongoing obligations to citizens and creditors. Table 1 Net Position Governmental Business Type Activities Activities Total FY 2013 FY 2012 FY 2013 FY 2012 FY 2013 FY 2012 Current and other assets $ 6,259,874 $ 5,522,719 1,950,844$ 62,621$ $ 8,210,718 $ 5,585,340 Capital assets 63,539,371 61,175,876 96,304 - 63,635,675 61,175,876 Total Assets 69,799,245 66,698,595 2,047,148 62,621 71,846,393 66,761,216 Long-term liabilities outstanding 11,227,570 12,165,387 1,743,456 - 12,971,026 12,165,387 Other liabilities 933,786 1,132,384 20,252 15,755 954,038 1,148,139 Total Liabilities 12,161,356 13,297,771 1,763,708 15,755 13,925,064 13,313,526 Net Position Net investment in capital assets 54,425,735 50,050,855 52,848 - 54,478,583 50,050,855 Restricted 315,480 1,191,411 - - 315,480 1,191,411 Unrestricted 2,896,674 2,158,558 230,592 46,866 3,127,266 2,205,424 Total Net Position $ 57,637,889 $ 53,400,824 283,440$ 46,866$ $ 57,921,329 $ 53,447,690 Town Council Page 368 of 522 Meeting Date: Monday, April 7, 2014 Changes in Net Position--The net position of the Town increased by $4,473,639 for the fiscal year ended September 30, 2013. Governmental Activities. Governmental activities increased the Town’s net position by $4,237,065 from the prior year. This was primarily the result of increased capital grants and contributions. Business-type Activities. From the prior year, net position from business-type activities increased by $236,574. This increase is primarily due to a $216,929 increase in net position in the Town Storm Drainage fund despite a $37,344 transfer to other funds. Table 2 Changes in Net Position Governmental Business Type Activities Total FY 2013 FY 2012 FY 2013 FY 2012 FY 2013 FY 2012 Revenues: Program revenues: Charges for services $ 1,761,490 $ 1,984,623 $ 506,205 $ 325,380 $ 2,267,695 $ 2,310,003 Operating grants and contributions 952,648 342,894 - - 952,648 342,894 Capital grants and contributions 4,793,132 2,682,302 - - 4,793,132 2,682,302 General revenues: Ad valorem taxes 5,334,140 4,897,615 - - 5,334,140 4,897,615 Sales and mixed beverage taxes 781,054 754,105 - - 781,054 754,105 Franchise taxes 720,168 685,522 - - 720,168 685,522 Occupancy taxes 108,170 20,543 - - 108,170 20,543 Investment income 7,193 7,983 - - 7,193 7,983 Miscellaneous revenues 379,896 301,269 - - 379,896 301,269 Total revenues 14,837,891 11,676,856 506,205 325,380 15,344,096 12,002,236 Expenses: General government 51,412 179,110 - - 51,412 179,110 Storm drainage 227,067 187,400 - - 227,067 187,400 Emergency medical services 783,795 699,230 - - 783,795 699,230 Manager's office 762,013 637,218 - - 762,013 637,218 Human resources 102,361 94,065 - - 102,361 94,065 Finance 372,496 525,494 - - 372,496 525,494 Information systems 367,838 273,673 - - 367,838 273,673 Legal 171,157 154,236 - - 171,157 154,236 Police 2,046,422 1,613,833 - - 2,046,422 1,613,833 Court 68,520 79,735 - - 68,520 79,735 Recreation 543,672 838,138 - - 543,672 838,138 Facilities management 75,344 120,341 - - 75,344 120,341 Parks 1,493,918 726,522 - - 1,493,918 726,522 Community development 341,566 253,761 - - 341,566 253,761 Planning and zoning 258,306 231,853 - - 258,306 231,853 Streets 2,234,140 1,642,399 - - 2,234,140 1,642,399 Water and sewer 261,106 92 - - 261,106 92 Interest on long-term debt 489,337 498,569 - - 489,337 498,569 Trophy Club Park - - 98,718 130,185 98,718 130,185 Town storm drainage - - 121,269 96,488 121,269 96,488 Total expenses 10,650,470 8,755,669 219,987 226,673 10,870,457 8,982,342 Increase (decrease) in net position before transfers 4,187,421 2,921,187 286,218 98,707 4,473,639 3,019,894 Transfers 49,644 64,382 (49,644) (64,382)- - Increase (decrease) in net position 4,237,065 2,985,569 236,574 34,325 4,473,639 3,019,894 Net Position - Beginning, as restated 53,400,824 50,415,255 46,866 12,541 53,447,690 50,427,796 Net Position - Ending $ 57,637,889 $ 53,400,824 283,440$ 46,866$ $ 57,921,329 $ 53,447,690 Activities Financial Analysis of the Government’s Funds Governmental funds--The focus of the Town’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the Town’s financing requirements. Town Council Page 369 of 522 Meeting Date: Monday, April 7, 2014 In particular, the unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Town’s governmental funds reported a combined fund balance of $5,021,201. The General Fund is the main operating fund of the Town. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $2,398,330. The fund balance of the General Fund decreased by $503,838 during the fiscal year. The decrease can be attributed to transfers out of $780,734 that were used to defease debt primarily in the Economic Development Corporations 4A and 4B, for which the 4B will repay over the next fifteen years. The transfers out were offset by increased revenue in the amount of $251,554. Revenue categories experiencing significant increases/decrease include: • Property tax revenue increased from the previous year - $ 297,026 • Licenses and permits decreased from the previous year - $ 159,949 The Debt Service Fund experienced an increase of $25,455 in fund balance. Funds are restricted for the payment of debt service. The Capital Projects Fund experienced an increase in fund balance of $1,069,334, which is due to the issuance of $1,300,000 in certificates of obligation. The Grant Fund had an increase in fund balance of $245,833. Other governmental funds had an increase in fund balance of $90,577. This increase was primarily due to increased collection of hotel occupancy taxes and a newly created Crime Control and Prevention District, which collected two months of sales taxes in FY 13, net of decreased fund balance in the Street Maintenance Sales Tax Fund. In the General Fund, the Town budgeted for a fund balance decrease in the current year of $796,826. Due primarily to actual revenues being more than budgeted, the actual budget basis fund balance variance from budget was an increase of $292,988 for fiscal year 2013. Proprietary funds--The Town’s proprietary funds provide the same type of information found in the government-wide statements, but in more detail. The unrestricted net position of the Trophy Club Park Fund amounted to ($6,470) at year end while the unrestricted net position of the Town Storm Drainage Fund amounted to $237,062. Other factors concerning the finances of these two funds have already been addressed in the discussion of the Town’s business-type activities. General Fund Budgetary Highlights Revenue: Significant variances between budgeted and actual revenues included: franchise taxes were $43,298 over budget; licenses and permits were $91,600 over budget; revenues from charges for services were $110,907 over budget; miscellaneous revenue was $135,563 over budget, and grant revenue was $75,599 over budget. Overall, the Town’s actual revenues exceeded final budgeted amounts by $480,037. Expenditures: Overall expenditures exceeded the budgeted amount by $227,065 in fiscal year 2013. The Police Department exceeded its budget by $213,800 primarily due to unexpected necessary renovations to the police facility due to water damage that was mostly offset by insurance proceeds. The Planning and Zoning Department exceeded its budget by $92,518 primarily related to engineering expenditures that were offset by increased developer’s fees. The Recreation Department ended fiscal year 2013 $67,789 under budget primarily due to savings related to personnel, utilities, and property maintenance. Town Council Page 370 of 522 Meeting Date: Monday, April 7, 2014 Capital Assets Capital Assets: The Town’s investment in capital assets for its governmental and business-type activities as of September 30, 2013, amounts to $63,635,675 (net of accumulated depreciation). The investment in capital assets includes land, buildings, improvements other than buildings, utility system, machinery and equipment, and construction in progress. The total increase in the Town’s investment in capital assets for the current year was 4.0%. Major capital asset events during the current fiscal year included the following: • Town completed construction of the Roundabout • Town completed Independence Park improvements • Town completed two Bocce Ball courts at Harmony Park • Town purchased and installed outdoor warning sirens at the dog park • Town purchased new vehicles • Town purchased new lawnmowers and a Kawasaki mule for Parks • Town purchased in-car video equipment for Police • Town redesigned the Town website, increasing its functionality • Town purchased CPR and lifesaving training equipment for EMS Table 3 Capital Assets at Year-End Governmental Business Type Activities Activities Total FY 2013 FY 2012 FY 2013 FY 2012 FY 2013 FY 2012 Land $ 9,099,889 $ 3,500,349 -$ -$ $ 9,099,889 $ 3,500,349 Construction in progress 140,523 22,012,233 96,304 - 236,827 22,012,233 Buildings 1,359,569 1,410,199 - - 1,359,569 1,410,199 Improvements other than buidlings 36,795,038 24,486,478 - - 36,795,038 24,486,478 Machinery and equipment 746,486 797,624 - - 746,486 797,624 Vehicles 350,025 332,107 - - 350,025 332,107 Water system 4,849,140 2,005,053 - - 4,849,140 2,005,053 Infrastructure 10,198,701 6,631,833 - - 10,198,701 6,631,833 Total $ 63,539,371 $ 61,175,876 96,304$ -$ $ 63,635,675 $ 61,175,876 Additional information on the Town’s capital assets can be found in Note 4 on pages 42-43 of this report. Debt Administration At the end of the current fiscal year, the Town of Trophy Club had total debt outstanding of $12,971,026. Of this amount, $9,400,000 comprises bonded debt backed by the full faith and credit of the Town and $3,365,000 represents contractual obligations. The Town maintains fair ratings from bond rating agencies as follows. Bond Ratings: Standard & Poor’s Moody’s General obligation bonds AA Aa3 Contractual obligations AA Aa3 Town Council Page 371 of 522 Meeting Date: Monday, April 7, 2014 The Town’s General obligation, contractual obligations, compensated absence obligations, and OPEB obligations are as follows. Table 4 Outstanding Debt at Year-End Governmental Business Type Activities Activities Total FY 2013 FY 2012 FY 2013 FY 2012 FY 2013 FY 2012 General obligation bonds $9,400,000 $11,425,000 -$ $ - $9,400,000 $11,425,000 Contractual obligations 1,665,000 634,000 1,700,000 - 3,365,000 634,000 Issuance premium 97,495 80,149 43,456 - 140,951 80,149 Deferred loss on refunding (50,250) (67,001) - - (50,250) (67,001) OPEB Liability 41,995 32,099 - - 41,995 32,099 Compensated absences 73,330 61,140 - - 73,330 61,140 Totals $11,227,570 $12,165,387 1,743,456$ -$ $12,971,026 $12,165,387 Additional information on the Town’s long-term debt can be found in the Note 6 on pages 44-46 of this report. Economic Factors and Next Year’s Budgets and Rates The Town continues to experience high residential growth as well as limited commercial and retail development. The Town issued 268 residential construction permits in FY 2013, a decrease of 70 from the previous year. The permits are averaging approximately $490,000. The Town budgeted for 265 residential building permits for FY14. Residential development is expected to decrease significantly beginning in FY 2015 as the Town approaches substantial build out. In addition to the strong residential growth, the Town is experiencing strong commercial development as well. The Town opened a new hotel in March 2013, with two more set to begin construction in FY 14. The Town anticipates three more office developments during 2014. Finally, the Town Council rezoned a 26 acre tract to a Mixed-Use Planned Development in January 2012. Town staff continues to work with the property owner to develop that tract that will add an estimated $150 million to the commercial tax base. In fiscal year 2013, General Fund revenues are budgeted to increase 4.4% over FY 2013 estimated revenues while expenditures are budgeted to increase by 5.9% over FY 2013 estimated expenditures. An increase of approximately 16.14% in the assessed valuation of taxable property was realized for fiscal year 2014. The fiscal year 2014 budget decreased the ad valorem tax rate to $0.4993 per hundred dollars of assessed value, down from $0.518543 in fiscal year 2013. Requests for Information This financial report is designed to provide a general overview of the Town’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Town of Trophy Club Finance Director, 100 Municipal Drive, Trophy Club, Texas, 76262. This information can also be accessed on the Town of Trophy Club’s website at www.trophyclub.org. Town Council Page 372 of 522 Meeting Date: Monday, April 7, 2014 Town Council Page 373 of 522 Meeting Date: Monday, April 7, 2014 BASIC FINANCIAL STATEMENTS Town Council Page 374 of 522 Meeting Date: Monday, April 7, 2014 Town Council Page 375 of 522 Meeting Date: Monday, April 7, 2014 Governmental Business-type Component Activities Activities Total Units Cash and cash equivalents 7,187,062$ 207,937$ 7,394,999$ 302,772$ Receivables: Sales taxes 143,562 - 143,562 46,015 Ad valorem taxes 45,291 - 45,291 - Franchise fees 97,547 - 97,547 - Accounts, net 209,612 30,644 240,256 - Other 2,616 - 2,616 - Due from other governments 71,248 9,568 80,816 38,797 Internal balances (1,658,733) 1,658,733 - - Prepaid items 796 6,198 6,994 - Unamortized debt issue cost 160,873 37,764 198,637 - Capital assets: Land 9,099,889 - 9,099,889 - Construction in progress 140,523 96,304 236,827 - Buildings 1,993,440 - 1,993,440 - Improvements other than buildings 51,667,087 - 51,667,087 - Machinery and equipment 1,669,037 - 1,669,037 - Vehicles 962,566 - 962,566 - Water system 5,252,201 - 5,252,201 - Infrastructure 13,880,230 - 13,880,230 - Accumulated depreciation (21,125,602) - (21,125,602) - TOTAL ASSETS 69,799,245$ 2,047,148$ 71,846,393$ 387,584$ Accounts payable 432,998$ 12,712$ 445,710$ 20,984$ Accrued liabilities 215,460 80 215,540 - Interest payable 33,621 7,460 41,081 - Unearned revenue, franchise fees 212,910 - 212,910 - Due to other governments 38,797 - 38,797 - Noncurrent liabilities: Debt due within one year 1,008,086 144,419 1,152,505 - Debt due in more than one year 10,219,484 1,599,037 11,818,521 - TOTAL LIABILITIES 12,161,356 1,763,708 13,925,064 20,984 Net investment in capital assets 54,425,735 52,848 54,478,583 - Restricted for debt service 95,507 - 95,507 - Restricted for crime control and prevention 23,007 - 23,007 - Restrricted for tourism 87,225 - 87,225 - Restricted for street maintenance 46,700 - 46,700 - Restricted for anniversary events 2,114 - 2,114 - Restricted for court 60,927 - 60,927 - Unrestricted 2,896,674 230,592 3,127,266 366,600 TOTAL NET POSITION 57,637,889$ 283,440$ 57,921,329$ 366,600$ NET POSITION LIABILITIES ASSETS Primary Government Town Council Page 376 of 522 Meeting Date: Monday, April 7, 2014 Operating Capital Charges for Grants and Grants and Program Activites Expenses Services Contributions Contributions Governmental activities: General government 51,412$ 215,646$ 41,116$ -$ Storm drainage 227,067 - - 744,236 Emergency medical services 783,795 133,663 - - Manager's office 762,013 - - - Human resources 102,361 - - - Finance 372,496 - - - Information systems 367,838 - - - Legal 171,157 - - - Police 2,046,422 - 129,384 - Court 68,520 205,905 - - Recreation 543,672 237,991 52,239 - Facilities management 75,344 - - - Parks 1,493,918 - - - Community development 341,566 949,195 - - Planning and zoning 258,306 19,090 - - Water and sewer 261,106 - - 1,694,038 Streets 2,234,140 - - 2,354,858 Interest on long-term debt 489,337 - 729,909 - Total governmental activities 10,650,470 1,761,490 952,648 4,793,132 Business-type activities: Trophy Club Park 98,718 130,663 - - Town Storm Drainage 121,269 375,542 - - Total business-type activities 219,987 506,205 - - Total Primary Government 10,870,457$ 2,267,695$ 952,648$ 4,793,132$ Component units: 4A Economic Development Corporation 496,375$ -$ -$ -$ 4B Economic Development Corporation 441,001 - - - Total component units 937,376$ -$ -$ -$ General Revenues and transfers: Taxes: Ad valorem Sales and mixed beverage Franchise taxes Occupancy taxes Investment income Miscellaneous revenues Transfers Total general revenues and transfers Change in net position Net Position - beginning of year, as restated Net Position - end of year Program Revenues Town Council Page 377 of 522 Meeting Date: Monday, April 7, 2014 Governmental Business-type Component Activities Activities Total Units 205,350$ - $ 205,350$ -$ 517,169 - 517,169 - (650,132) - (650,132) - (762,013) - (762,013) - (102,361) - (102,361) - (372,496) - (372,496) - (367,838) - (367,838) - (171,157) - (171,157) - (1,917,038) - (1,917,038) - 137,385 - 137,385 - (253,442) - (253,442) - (75,344) - (75,344) - (1,493,918) - (1,493,918) - 607,629 - 607,629 - (239,216) - (239,216) - 1,432,932 1,432,932 - 120,718 - 120,718 - 240,572 - 240,572 - (3,143,200) - (3,143,200) - - 31,945 31,945 - - 254,273 254,273 - - 286,218 286,218 - (3,143,200) 286,218 (2,856,982) - - - - (496,375) - - - (441,001) - - - (937,376) 5,334,140 - 5,334,140 - 781,054 - 781,054 421,470 720,168 - 720,168 - 108,170 - 108,170 - 7,193 - 7,193 - 379,896 - 379,896 - 49,644 (49,644) - - 7,380,265 (49,644) 7,330,621 421,470 4,237,065 236,574 4,473,639 515,906)( 53,400,824 46,866 53,447,690 882,506 57,637,889$ 283,440$ 57,921,329$ 366,600$ Net (Expenses) Revenues and Changes in Net Position Primary Government Town Council Page 378 of 522 Meeting Date: Monday, April 7, 2014 Debt General Service ASSETS Cash and cash equivalents 3,047,434$ 158,519$ Receivables Sales taxes 97,548 - Ad valorem taxes 35,885 9,406 Franchise fees 97,547 - Accounts, net 188,187 - Miscellaneous - - Due from other governments 71,248 - Due from other funds 97,170 - Prepaids 796 - Total assets 3,635,815$ 167,925$ Liabilities Accounts payable 415,252$ -$ Accrued liabilities 212,160 - Due to other governments - 38,797 Due to other funds - - Deferred revenue 381,139 9,406 Total liabilities 1,008,551 48,203 Fund balances (deficits) Nonspendable for: Prepaids 796 - Restricted for: Debt service - 119,722 Capital projects - - Tourism - - Street maintenance - - Crime Control and Prevention Town 25th anniversary - - Court - - Assigned for: Capital expenditures 228,138 - Unassigned 2,398,330 - Total fund balances (deficits)2,627,264 119,722 TOTAL LIABILITIES AND FUND BALANCES (DEFICITS) 3,635,815$ 167,925$ LIABILITIES AND FUND BALANCES (DEFICITS) Town Council Page 379 of 522 Meeting Date: Monday, April 7, 2014 Nonmajor Total Capital Grant Governmental Governmental Projects Fund Funds Funds 3,785,809$ 41,364$ 153,936$ 7,187,062$ - - 46,014 143,562 - - - 45,291 - - - 97,547 - - 21,425 209,612 - 2,616 - 2,616 - - - 71,248 - - - 97,170 - - - 796 3,785,809$ 43,980$ 221,375$ 7,854,904$ 16,750$ 597$ 399$ 432,998$ 3,300 - - 215,460 - - - 38,797 1,700,000 54,900 1,003 1,755,903 - - - 390,545 1,720,050 55,497 1,402 2,833,703 - - - 796 - - - 119,722 2,065,759 - - 2,065,759 - - 87,225 87,225 - - 46,700 46,700 23,007 23,007 - - 2,114 2,114 - - 60,927 60,927 - - - 228,138 - (11,517) - 2,386,813 2,065,759 (11,517) 219,973 5,021,201 3,785,809$ 43,980$ 221,375$ 7,854,904$ Town Council Page 380 of 522 Meeting Date: Monday, April 7, 2014 Total fund balances - governmental funds 5,021,201$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds balance sheet.63,539,371 Costs associated with the issuance of governmental long-term debt are expensed when incurred in the fund financial statements and capitalized and amortized over the life of the debt in the government-wide financial statements.160,873 Interest payable on long-term debt does not require current financial resources; therefore, interest payable is not reported as a liability in the governmental funds balance sheet.(33,621) Revenues earned but not available within sixty days of year-end are not recognized as revenue in the fund financial statements.177,635 Compensated absences are not due and payable in the current period and, therefore, are not reported in the fund financial statements. (73,330) OPEB liability has not been included in the governmental fund financial statements, as this liability does not require current financial resources.(41,995) Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the fund financial statements. This amount is the net effect of: o General obligation bonds (9,400,000) o Contractual obligations (1,665,000) o Issuance premium (97,495) o Deferred loss on refunding 50,250 (11,112,245) Net position of governmental activities 57,637,889$ Town Council Page 381 of 522 Meeting Date: Monday, April 7, 2014 Town Council Page 382 of 522 Meeting Date: Monday, April 7, 2014 Debt General Service Revenues: Ad valorem taxes 4,149,900$ 1,180,878$ Sales and mixed beverage taxes 609,888 - Franchise taxes 718,952 - Occupancy taxes - - Licenses and permits 968,285 - Intergovernmental 158,987 729,909 Charges for services 592,146 - Fines 160,614 - Investment income 4,921 832 Miscellaneous 336,497 - Grant revenue 75,599 - Contributions - - Total revenues 7,775,789 1,911,619 Expenditures: Current: General government - - Emergency medical services 768,367 - Manager's office 707,166 - Human resources 102,771 - Finance 372,816 - Information systems 342,319 - Legal 171,157 - Police 2,068,309 - Court 68,731 - Parks 947,734 - Recreation 543,762 - Facilities management 75,344 - Community development 319,168 - Planning and zoning 257,138 - Streets 766,411 - Capital outlay - - Debt service: Principal retirement - 2,294,000 Interest and fiscal charges - 456,417 Bond issuance costs - - Total expenditures 7,511,193 2,750,417 Excess (deficiency) of revenues over (under) expenditures 264,596 (838,798) Other financing sources (uses): Transfers in 12,300 864,253 Transfers out (780,734) - Issuance of long-term debt - - Premium on issuance of long-term debt - - Total other financing sources (uses)(768,434) 864,253 Net change in fund balances (503,838) 25,455 Fund Balances (Deficit) - beginning of year, as restated 3,131,102 94,267 Fund Balances (Deficit) - end of year 2,627,264$ 119,722$ Town Council Page 383 of 522 Meeting Date: Monday, April 7, 2014 Nonmajor Total Capital Grant Governmental Governmental Projects Fund Funds Funds -$ -$ -$ 5,330,778$ - - 171,166 781,054 - - - 718,952 - - 108,170 108,170 - - - 968,285 - - - 888,896 - - - 592,146 - - 10,965 171,579 1,429 - 11 7,193 30,000 22,397 - 388,894 28,758 386,493 - 490,850 1,472 - - 1,472 61,659 408,890 290,312 10,448,269 - - 22,277 22,277 - 516 - 768,883 51,089 - - 758,255 - - - 102,771 - - - 372,816 - - - 342,319 - - - 171,157 - - - 2,068,309 - - 68,731 - - - 947,734 - - - 543,762 - - - 75,344 - - - 319,168 - - - 257,138 - 162,541 139,010 1,067,962 237,936 - - 237,936 - - - 2,294,000 - - - 456,417 29,367 - - 29,367 318,392 163,057 161,287 10,904,346 (256,733) 245,833 129,025 (456,077) - - - 876,553 (7,727) - (38,448) (826,909) 1,300,000 - - 1,300,000 33,794 - - 33,794 1,326,067 - (38,448) 1,383,438 1,069,334 245,833 90,577 927,361 996,425 (257,350) 129,396 4,093,840 2,065,759$ (11,517)$ 219,973$ 5,021,201$ Town Council Page 384 of 522 Meeting Date: Monday, April 7, 2014 Net change in fund balances - total governmental funds 927,361$ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount of capital assets recorded in the current period.605,390 Depreciation expense on capital assets reported in the statement of activities does not require the use of current financial resources. Therefore, depreciation expense is not reported as expenditures in the governmental funds.(2,619,875) The issuance of long-term debt (i.e. bonds) provides current financial resources to governmental funds, while the repayment of principal consumes the current financial resources of the governmental funds. Neither transaction, however, has any effect on net position. This amount is the net effect of the following: o Bond proceeds - ($1,300,000) o Payment of principal on bonds and capital leases - $2,294,000 994,000 Losses as a result of refunding debt are not recorded in the governmental funds. The effect of recording current year's amortization of the loss is to decrease net position. (16,751) Changes in the other post employment benefit assets and liabilities are not reported at the fund level; however they are reported at the government-wide level.(9,896) Costs associated with the issuance of governmental long-term debt are expensed when incurred in the fund financial statements and capitalized and amortized over the life of the debt in the government-wide financial statements. This amount is the net effect of current year issuance costs ($29,367) less current year amortization ($36,260).(6,893) Premiums and discounts are recognized as other financing sources or uses in the fund financial statements, but they are amortized over the term of the bonds in the government-wide financial statements. This amount is the net effect of current year premium's ($33,794) less current year amortization ($16,448).(17,346) Current year changes in the long-term liability for compensated absences do not require the use of current financial resources; and, therefore, are not reported as expenditures in the governmental funds.(12,190) Governmental funds do not recognize assets contributed by developers. However, in the statement of activities, the fair market value of those assets is recognized as revenue, then allocated over their estimated useful lives and reported as depreciation expense.4,377,980 Current year changes in accrued interest payable do not require the use of current financial resources; and, therefore, are not reported as expenditures in governmental funds.3,643 Certain revenues in the government-wide statement of activities that do not provide current financial resources are not reported as revenue in the governmental funds.11,642 Change in net position of governmental activities 4,237,065$ Town Council Page 385 of 522 Meeting Date: Monday, April 7, 2014 Trophy Club Town Storm Park Drainage Total CURRENT ASSETS: Cash and cash equivalents 31,521$ 176,416$ 207,937$ Accounts receivable - 30,644 30,644 Due from other funds - 1,700,000 1,700,000 Due from other governments - 9,568 9,568 Prepaids 6,196 2 6,198 Total current assets 37,717 1,916,630 1,954,347 NONCURRENT ASSETS: Unamortized debt issue cost - 37,764 37,764 Capital assets Construction in Progress - 96,304 96,304 Total noncurrent assets - 134,068 134,068 TOTAL ASSETS 37,717$ 2,050,698$ 2,088,415$ CURRENT LIABILITIES: Accounts payable 4,418$ 8,294$ 12,712$ Accrued liabilities 80 - 80 Accrued interest - 7,460 7,460 Due to other funds 39,689 1,578 41,267 Current portion of long-term debt - 144,419 144,419 Total current liabilities 44,187 161,751 205,938 NONCURRENT LIABILITIES: Noncurrent portion of long-term debt - 1,599,037 1,599,037 Total noncurrent liabilities - 1,599,037 1,599,037 TOTAL LIABILITIES 44,187 1,760,788 1,804,975 Net investment in capital assets - 52,848 52,848 Unrestricted (6,470) 237,062 230,592 TOTAL NET POSITION (6,470) 289,910 283,440 TOTAL LIABILITIES AND NET POSITION 37,717$ 2,050,698$ 2,088,415$ NET POSITION LIABILITIES ASSETS Business-type Activities - Enterprise Funds Town Council Page 386 of 522 Meeting Date: Monday, April 7, 2014 Trophy Club Town Storm Park Drainage Total OPERATING REVENUES Charges for service: Park fees 130,663$ -$ 130,663$ Storm drainage fees - 375,542 375,542 Total operating revenue 130,663 375,542 506,205 OPERATING EXPENSES Salaries and benefits 48,917 34,156 83,073 Supplies and materials 12,376 8,755 21,131 Repairs and maintenance 6,594 23,278 29,872 Utilities 7,847 - 7,847 Other operating expenses 22,984 52,031 75,015 Total operating expenses 98,718 118,220 216,938 Operating income 31,945 257,322 289,267 NONOPERATING REVENUES (EXPENSES) Interest expense - (3,049) (3,049) Total nonoperating revenues (expenses)- (3,049) (3,049) Income before transfers 31,945 254,273 286,218 TRANSFERS Transfers out (12,300) (37,344) (49,644) Change in net position 19,645 216,929 236,574 NET POSITION, beginning of year (26,115) 72,981 46,866 NET POSITION, end of year (6,470)$ 289,910$ 283,440$ Business-type Activities - Enterprise Funds Town Council Page 387 of 522 Meeting Date: Monday, April 7, 2014 Trophy Club Town Storm Park Drainage Total CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers 130,663$ 375,007$ 505,670$ Cash paid to employees (48,917) (34,156) (83,073) Cash paid to suppliers (62,180) (79,097) (141,277) Net cash provided by operating activities 19,566 261,754 281,320 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Repayments of amounts due from other funds (293) (1,689,338) (1,689,631) Transfers to other funds (12,300) (37,344) (49,644) Net cash used in noncapital financing activities (12,593) (1,726,682) (1,739,275) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Proceeds from issuance of long-term debt - 1,700,000 1,700,000 Bond Issuance Costs - (37,764) (37,764) Premium on issuance of long-term debt - 43,456 43,456 Capital expenditures - (96,304) (96,304) Interest paid on debt - 4,411 4,411 Net cash provided by capital and related financing activities - 1,613,799 1,613,799 Net increase in cash 6,973 148,871 155,844 Cash and cash equivalents, beginning of year 24,548 27,545 52,093 Cash and cash equivalents, end of year 31,521$ 176,416$ 207,937$ Trophy Club Town Storm Park Drainage Total RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income 31,945$ 257,322$ 289,267$ Adjustments to reconcile operating income to cash provided by operating activities: Increase in accounts receivable - (535) (535) Increase in prepaid expenses (4,449) - (4,449) Increase in accounts payable (7,930) 4,967 (2,963) Net cash provided by operating activities 19,566$ 261,754$ 281,320$ Business-type Activities -Enterprise Funds Business-type Activities - Enterprise Funds Town Council Page 388 of 522 Meeting Date: Monday, April 7, 2014 Agency Fund PID No. 1 Debt Service ASSETS Cash and cash equivalents 4,298,547$ Total assets 4,298,547 LIABILITIES Due to debt holders 4,298,547 Total liabilities 4,298,547$ Town Council Page 389 of 522 Meeting Date: Monday, April 7, 2014 4A 4B Economic Economic Totals Development Development September 30, Corporation Corporation 2013 Cash and cash equivalents 143,473$ 159,299$ 302,772$ Receivables, net: Sales taxes - 46,015 46,015 Due from other governments 34,423 4,374 38,797 TOTAL ASSETS 177,896$ 209,688$ 387,584$ Accounts payable -$ 20,984$ 20,984$ TOTAL LIABILITIES - 20,984 20,984 Unrestricted 177,896 188,704 366,600 TOTAL NET POSITION 177,896$ 188,704$ 366,600$ NET POSITION LIABILITIES ASSETS Town Council Page 390 of 522 Meeting Date: Monday, April 7, 2014 Net (Expenses) Revenues and Changes in Net Position 4A Economic 4B Economic Development Development Expenses Corporation Corporation Total 4A Economic Development Corporation General government 496,375$ (496,375)$ -$ (496,375)$ 4B Economic Development Corporation General government 441,001 - (441,001) (441,001) Total component units 937,376$ (496,375) (441,001) (937,376) General Revenues: Sales taxes 174,473 246,997 421,470 Total general revenues 174,473 246,997 421,470 Change in net position (321,902) (194,004) (515,906) Net Position - beginning of year 499,798 382,708 882,506 Net Position - end of year 177,896$ 188,704$ 366,600$ Town Council Page 391 of 522 Meeting Date: Monday, April 7, 2014 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. General Statement The Town of Trophy Club (the “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: council, public safety (police and emergency medical services), parks, public works (public improvements, streets, planning and zoning), and general administrative services. The accounting and reporting policies of the Town relating to the funds included in the accompanying basic financial statements conform to accounting principles generally accepted in the United States of America applicable to state and local governments. Generally accepted accounting principles for local governments include those principles prescribed by the Governmental Accounting Standards Board (GASB). The more significant accounting policies of the Town are described below. B. 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. Discretely presented component units are reported in separate columns in the government-wide financial statements to emphasize that they are legally separate from the government. As required by accounting principles generally accepted in the United States of America, these financial statements include the primary government and organizations for which the primary government is financially accountable and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The definition of the reporting entity is based primarily on the notion of financial accountability. A primary government is financially accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its officials appoint a voting majority of an organization's governing body and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary government. A primary government may also be financially accountable for governmental organizations that are fiscally dependent on it. A primary government has the ability to impose its will on an organization if it can significantly influence the programs, projects, or activities of, or the level of services performed or provided by, the organization. A financial benefit or burden relationship exists if the primary government (a) is entitled to the organization's resources; (b) is legally obligated or has otherwise assumed the obligation to finance the deficits of, or provide financial support to, the organization; or (c) is obligated in some manner for the debt of the organization. Town Council Page 392 of 522 Meeting Date: Monday, April 7, 2014 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED B. Financial Reporting Entity – Continued Some organizations are included as component units because of their fiscal dependency on the primary government. An organization is fiscally dependent on the primary government if it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval by the primary government. The following entities were found to be discretely presented component units of the Town and are included in the financial statements: Discretely Presented Component Units The 4A Economic Development Corporation (4A) 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 4A and affect the day-to-day operations of the 4A by removing appointed board members at will. The scope of public service of 4A benefits the Town and its citizens and is operated primarily within the geographic boundaries of the Town. In May 2013, voters approved to dissolve the 4A and replace it with a Crime Control Prevention District (CCPD). The 4B Economic Development Corporation (4B) 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 4B and affect the day-to-day operations of the 4B by removing appointed board members at will. The scope of public service of the 4B benefits the Town and its citizens and is operated primarily within the geographic boundaries of the Town . Separate financial statements for the individual component units are not prepared. C. Government-Wide and Fund Financial Statements Government-Wide Financial Statements The government-wide financial statements (the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the Town. As a general rule, the effect of interfund activity has been removed from these statements. However, interfund services provided and used are not eliminated in the consolidation process. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given program are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific program. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given program and 2) operating or capital grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Taxes and other items not properly included among program revenues are reported instead as general revenues. Town Council Page 393 of 522 Meeting Date: Monday, April 7, 2014 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED C. Government-Wide and Fund Financial Statements – Continued Fund Financial Statements The Town segregates transactions related to certain functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance. Separate statements are presented for governmental, proprietary and fiduciary activities. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. A separate financial statement is provided for the agency fund even though it is excluded from the government-wide statements. 1. Governmental Funds: Governmental funds are those funds through which most governmental functions typically are financed. The measurement focus of governmental funds is on the sources, uses and balance of current financial resources. The Town has presented 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 fund are accounted for in this fund. General operating expenditures, fixed charges and capital improvement costs that are not paid through other funds are paid from the General Fund. 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. Grant Fund This fund is used to account for grant monies received by and expended by the Town. In addition, the Town reports the following non-major governmental funds: Hotel/Motel Fund This fund is used to account for local hotel and motel occupancy tax receipts, as well as expenses (events). Town Council Page 394 of 522 Meeting Date: Monday, April 7, 2014 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED C. Government-Wide and Fund Financial Statements – Continued Fund Financial Statements – Continued Street Maintenance Sales Tax Fund Accounts for sales taxes specifically restricted for street improvements. 25th Anniversary Fund Accounts for contributions restricted for the Town’s 25th anniversary celebration. 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. Crime Control and Prevention District Accounts for sales taxes specifically restricted for crime control and prevention. 2. Proprietary Funds: Proprietary Funds are accounted for using an economic resources measurement focus. The accounting objectives are a determination of net income, financial position, and changes in cash flows. All assets and liabilities associated with a proprietary fund's activities are included on its statement of net position. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Trophy Club Park enterprise fund and the Town Storm Drainage enterprise fund are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and service, administrative expenses, and repairs and maintenance. All revenues and expenses not meeting the above definitions are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the Town’s policy to use restricted resources first, then unrestricted resources as they are needed. The Town has presented the following major Proprietary funds: Trophy Club Park Fund This fund is utilized to account for funds received and expended for the maintenance of park land. Town Storm Drainage Fund Accounts for the storm drainage utility fee designated for the maintenance of the Town's storm drainage system. Town Council Page 395 of 522 Meeting Date: Monday, April 7, 2014 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED C. Government-Wide and Fund Financial Statements – Continued 3. Fiduciary Funds: The Town reports the following fiduciary fund: Public Improvement District (PID) No. 1 Debt Service Agency Fund This fund accounts for bond proceeds, assessments and related debt associated with the issuance of bonds issued by the Town as an agent for the Public Improvement District. D. Measurement Focus and Basis of Accounting Measurement focus refers to what is being measured; basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus applied. The government-wide and proprietary fund financial statements follow the accounting set forth by the Government Accounting Standards Board. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. The fiduciary fund financial statements are reported using the accrual basis of accounting, but have no measurement focus. 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. Governmental fund financial statements are reported using the current financial resources measurement focus and are accounted for using the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual; i.e., when they become both measurable and available. “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The Town considers receivables collected within sixty days after year-end to be available and recognizes them as revenues of the current year. Expenditures are recorded when the related fund liability is incurred. However, debt service expenditures are recorded only when payment is due. The revenues susceptible to accrual are property taxes, franchise fees, licenses, charges for service, interest income and intergovernmental revenues. Sales taxes collected and held by the state at year end on behalf of the government are also recognized as revenue. All other governmental fund revenues are recognized when received. E. Cash 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, these investments are considered to be cash equivalents. Town Council Page 396 of 522 Meeting Date: Monday, April 7, 2014 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED E. Cash and Investments – Continued 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. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties. F. Prepaid Items Prepaid items represent costs such as postage deferred to subsequent periods. G. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets, are reported in the governmental and business-type activities columns in the government-wide financial statements as well as in the proprietary fund financial statements. All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated assets are valued at their fair market value on the date donated. Repairs and maintenance are recorded as expenses. Renewals and betterments are capitalized. Interest has not been capitalized during the construction period on property, plant and equipment. Assets capitalized, not including infrastructure assets, have an original cost of $5,000 or more and over one year of useful life. Depreciation has been calculated on each class of depreciable property using the straight-line method. Estimated useful lives are as follows: Buildings 30 Years Improvements other than buildings 10-30 Years Improvements other than buildings (streets) 30 Years Machinery and equipment 7-15 Years Vehicles 6 Years Water system 25 Years Infrastructure (storm drainage system) 40 Years H. 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. Town Council Page 397 of 522 Meeting Date: Monday, April 7, 2014 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED I. 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 or business-type activities statement of net position. Bond premiums and discounts, as well as issuance costs and any deferred loss on the refunding of bonds are amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums and discounts received on debt issuances are reported as other financing sources or uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. J. Fund Equity The Town has adopted the provisions of GASB Statement No. 54, Fund Balance Reporting and Government Fund Type Definitions. The objective of the statement is to enhance the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied and by clarifying the existing government fund type definitions. The statement establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe the constraints imposed upon the use of the resources reported in governmental funds. Fund balance classifications under GASB 54 are Nonspendable, Restricted, Committed, Assigned, and Unassigned. Nonspendable fund balance represents fund balance that is (a) not in a spendable form such as prepaid items or (b) legally or contractually required to be maintained intact such as an endowment. Restricted fund balance consists of amounts that can be spent only on the specific purposes stipulated by law or by the external providers of those resources. Committed fund balances are self-imposed limitations set in place prior to the end of the fiscal period. These amounts can be used only for the specific purposes determined and approved by formal action of the Town Council, which is the highest level of decision-making authority for the Town. The same level of formal action is required to remove the constraint. Assigned fund balance consists of amounts that are subject to a purpose constraint that represents an intended use established by the Town Council or by their designated body or the Finance Director. The intention of use must be provided, in writing, by the Town Council or their designated body to the Finance Director, or by the Finance Director to the Town Council or their designated body. Unassigned fund balance represents the residual classification of fund balance and includes all spendable amounts not contained within the other classifications. When multiple categories of fund balance are available for expenditure, the Town will start with the most restricted category and spend those funds first before moving down to the next category with available funds. Town Council Page 398 of 522 Meeting Date: Monday, April 7, 2014 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED J. Fund Equity - Continued Additionally, the implementation of GASB No. 54 required the Town to evaluate the classification of Special Revenue Funds. In accordance with GASB No. 54 Special Revenue Funds are used only to account for specific revenue sources that are externally restricted or committed by the government’s highest level of decision making authority for specific purposes other than debt service or capital projects. K. Net Position In the government-wide financial statements, net position represents the difference between assets and liabilities. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvements of those assets, and adding back unspent proceeds. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislations adopted by the Town or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. NOTE 2. CASH AND INVESTMENTS At September 30, 2013, the carrying amount of the Town's deposits (cash, certificates of deposit, and interest-bearing savings accounts included in temporary investments) was $5,595,339 and the bank balance was $5,597,439. The Town's cash deposits at September 30, 2013 and during the year ended September 30, 2013 were entirely covered by FDIC insurance or by pledged collateral held by the Town's agent bank in the Town's name. Legal and contractual provisions governing deposits and investments The Public Funds Investment Act (Government Code Chapter 2256) contains specific provisions in the areas of investment practices, management reports and establishment of appropriate policies. Among other things, it requires the Town to adopt, implement, and publicize an investment policy. That policy must address the following areas: (1) safety of principal and liquidity, (2) portfolio diversification, (3) allowable investments, (4) acceptable risk levels, (5) expected rates of return, (6) maximum allowable stated maturity of portfolio investments, (7) maximum average dollar-weighted maturity, allowed based on the stated maturity date for the portfolio, (8) investment staff quality and capabilities, (9) and bid solicitation preferences for certificates of deposit. Town Council Page 399 of 522 Meeting Date: Monday, April 7, 2014 NOTE 2. CASH AND INVESTMENTS – CONTINUED Legal and contractual provisions governing deposits and investments – Continued Statutes and the Town’s investment policy authorized the Town to invest in the following investments as summarized in the table below: Maximum Maximum Authorized Maximum Percentage Investment Investment Type Maturity of Portfolio In One Issuer U.S. Treasury Obligations 2 years 85%NA U.S. Agencies Securities 2 years 85%NA State of Texas Securities 2 years 85%NA Certificates of Deposits 2 years 85%NA Municipal Securities 2 years 85%NA Money Market 2 years 50%NA Mutual Funds 2 years 50%NA Investment pools 2 years 100%NA The Act also requires the Town to have independent auditors perform test procedures related to investment practices as provided by the Act. The Town is in substantial compliance with the requirements of the Act and with local policies. Cash and investments as of September 30, 2013 are classified in the accompanying financial statements as follows: Statement of Net Position Primary Government: Cash 966,940$ Cash equivalents 6,428,059 Fiduciary Fund: Cash 4,298,547 Component Unit: Cash equivalents 302,772 Total cash and investments 11,996,318$ Cash and investments as of September 30, 2013 consist of the following: Cash on hand 2,099$ Deposits with financial institutions 5,595,339 Investments 6,398,880 Total cash and investments 11,996,318$ Town Council Page 400 of 522 Meeting Date: Monday, April 7, 2014 NOTE 2. CASH AND INVESTMENTS – CONTINUED Disclosures relating to interest rate risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the Town manages its exposure to interest rate risk is by investing mainly in investment pools which purchase a combination of shorter term investments with an average maturity of less than 60 days, thus reducing the interest rate risk. The Town monitors the interest rate risk inherent in its portfolio by measuring the weighted average maturity of its portfolio. The Town has no specific limitations with respect to this metric. As of September 30, 2013, the Town had the following investments: Investment Type Amount Weighted Average Maturity Texpool 6,398,880$ 60 days Total Investments 6,398,880$ As of September 30, 2013, the Town did not invest in any securities which are highly sensitive to interest rate fluctuations. Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the Public Funds Investment Act, the Town’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type. Investment Type Amount Minimum Legal Rating Rating as of Year End Texpool 6,398,880$ N/A AAAm Total Investments 6,398,880$ Concentration of credit risk The investment policy of the Town contains no limitations on the amount that can be invested in any one issuer. As of September 30, 2013, other than external investment pools, the Town did not have 5% or more of its investment with one issuer. Custodial credit risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. Town Council Page 401 of 522 Meeting Date: Monday, April 7, 2014 NOTE 2. CASH AND INVESTMENTS – CONTINUED Custodial credit risk – Continued The Public Funds Investment Act and the Town’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The Public Funds Investment Act requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least the bank balance less FDIC insurance at all times. As of September 30, 2013, the Town deposits with financial institutions in excess of federal depository insurance limits were fully collateralized. Investment in state investment pools The Town is a voluntary participant in TexPool. The State Comptroller of Public Accounts exercises responsibility over TexPool. This oversight includes the ability to significantly influence operations, designation of management, and accountability for fiscal matters. Additionally, the State Comptroller has established an advisory board composed of both participants in TexPool and other persons who do not have a business relationship with TexPool. TexPool operates in a manner consistent with the SEC’s Rule 2a7 of the Investment Company Act of 1940. TexPool uses amortized costs rather than market value to report net assets to compute share prices. Accordingly, the fair value of the position in TexPool is the same as the value of TexPool shares. NOTE 3. RECEIVABLES Year-end receivable balances for the government’s individual major funds and nonmajor governmental funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: General Debt Service Grant Fund Nonmajor Governmental Funds Town Storm Drainage Governmental Funds Receivables Property taxes 35,885$ 9,406$ -$ -$ -$ Franchise taxes 97,547 - - - - Sales Taxes 97,548 - - 46,014 - Accounts 986,271 - - 21,425 30,644 Grants 27,812 - - - Other 63,883 - 2,616 - - Gross receivables 1,308,946 9,406 2,616 67,439 30,644 Less: allowance (889,779)- - - - Net total receivables 419,167$ 9,406$ 2,616$ 67,439$ 30,644$ The September 30, 2013 Due from Other Governments of governmental activities balance is comprised of $29,710 due from the PID administrator for purchases made by the Town and $41,538 due from Trophy Club Municipal Utility District No. 1 for permitting services rendered and Fire payroll reimbursements. The September 30, 2013 Due from Other Governments of business-type activities balance is comprised of amounts due from the Trophy Club Municipal District No. 1 for stormwater drainage services rendered while the balance of component units is comprised of amounts due from the Debt Service Fund. Town Council Page 402 of 522 Meeting Date: Monday, April 7, 2014 NOTE 4. CAPITAL ASSETS The governmental activities’ beginning capital assets were restated in 2013. The restatement adjusted water system, and infrastructure assets and the corresponding accumulated depreciation to include developer contributions conveyed to the Town. In addition, the restatement adjusted accumulated depreciation related to Public Improvement District #1 assets completed and accepted by the Town in prior periods. For more information about the restatement, refer to Note 15. Capital asset activity for the year ended September 30, 2013, was as follows: Beginning Adjustments/ Balance Retirements/ Ending Balance Reclassifications As Restated Additions Transfers Balance Governmental Activities: Capital assets not depreciated: Land 3,500,349$ -$ 3,500,349$ -$ 5,599,540$ 9,099,889$ Construction in progress 22,012,233 - 22,012,233 166,178 (22,037,888) 140,523 Total capital assets not depreciated 25,512,582 - 25,512,582 166,178 (16,438,348) 9,240,412 Capital assets being depreciated: Buildings 1,993,440 - 1,993,440 - - 1,993,440 Improvements other than buildings 37,511,136 - 37,511,136 2,178,457 11,977,494 51,667,087 Machinery and equipment 1,591,089 - 1,591,089 115,045 (37,097) 1,669,037 Vehicles 1,149,442 - 1,149,442 85,416 (272,292) 962,566 Water system 1,874,028 381,940 2,255,968 721,667 2,274,566 5,252,201 Infrastructure 9,384,876 592,459 9,977,335 1,716,607 2,186,288 13,880,230 Total capital assets being depreciated 53,504,011 974,399 54,478,410 4,817,192 16,128,959 75,424,561 Less accumulated depreciation for: Buildings (583,241) - (583,241) (50,630) - (633,871) Improvements other than buildings (12,231,079) (793,579) (13,024,658) (1,847,391) - (14,872,049) Machinery and equipment (793,465) - (793,465) (129,071) (15) (922,551) Vehicles (817,335) - (817,335) (104,610) 309,404 (612,541) Water system (117,389) (133,526) (250,915) (152,146) - (403,061) Infrastructure (3,131,673) (213,829) (3,345,502) (336,027) - (3,681,529) Total accumulated depreciation (17,674,182) (1,140,934) (18,815,116) (2,619,875) 309,389 (21,125,602) Total capital assets being depreciated, net 35,829,829 (166,535) 35,663,294 2,197,317 16,438,348 54,298,959 Governmental activities capital assets, net 61,342,411$ (166,535)$ 61,175,876$ 2,363,495$ -$ 63,539,371$ Depreciation expense was charged as direct expense to programs of the primary government as follows: General government $ 37,809 Emergency medical services 50,810 Information systems 23,720 Police 61,459 Parks and recreation 607,615 Community development 21,804 Streets and Drainage 1,555,552 Water and sewer 261,106 Total depreciation expense 2,619,875$ Town Council Page 403 of 522 Meeting Date: Monday, April 7, 2014 NOTE 4. CAPITAL ASSETS – CONTINUED Beginning Retirements/ Ending Balance Additions Transfers Balance Business-Type Activities: Capital assets not depreciated: Construction in progress -$ 96,304$ -$ 96,304$ Total capital assets not depreciated - 96,304 - 96,304 Business-type activities capital assets, net -$ 96,304$ -$ 96,304$ NOTE 5. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS A summary of interfund receivables and payables balances at September 30, 2013 is as follows: Receivable Fund Payable Fund Amount Purpose General Fund Grant Fund 54,900$ Reimbursable expenditures moved to General Fund General Fund Trophy Club Park Fund 39,689 Transfers for administrative and public safety services General Fund Storm Drainage Fund 1,578 Reimbursable expenditures moved to General Fund General Fund Nonmajor Governmental Funds 1,003 Reimbursable expenditures moved to General Fund Storm Drainage Capital Projects 1,700,000 Storm Drainage Portion of 2013 CO Proceeds Total 1,797,170$ Transfers between funds during the year are as follows: Transfer In Transfer Out Amount Purpose Debt Service Nonmajor Governmental Funds 38,448$ Debt service payments Debt Service Town Storm Drainage 37,344 Debt service payments & accrued interest on 2013 CO General Fund Trophy Club Park 12,300 Support services Debt Service Capital Projects 7,727 Accrued interest on 2013 CO Debt Service General Fund 780,734 Debt defeasance and payments Total 876,553$ Town Council Page 404 of 522 Meeting Date: Monday, April 7, 2014 NOTE 6. LONG-TERM DEBT The Town periodically issues general obligation bonds and contractual obligations to provide funds for general government purposes. The Town also periodically utilizes notes and capital leases to provide financing for general government purposes. At September 30, 2013, the Town’s long-term debt consisted of the following: Year Average Interest of Final Annual Original Balance Description Rate Issue Maturity Payment Amount 9/30/2013 General Obligation Bonds: Improvements 4.00-5.00 %2007 2027 175,000 3,260,000 2,600,000$ Improvements 3.00-4.13 %2010 2030 250,000 5,000,000 4,550,000 Refunding 2.00-4.00 %2010 2022 232,500 2,790,000 1,870,000 Tax notes 4.24 %2012 2015 166,667 500,000 380,000 9,400,000$ Contractual Obligations: Combination Tax and Revenue-Series 2004 3.50-4.75 %2004 2024 45,620 650,000 365,000$ Certificates of Obligation Series 2013 2.50-3.25 %2013 2028 86,667 1,300,000 1,300,000 1,665,000$ Year Average Interest of Final Annual Original Balance Description Rate Issue Maturity Payment Amount 9/30/2013 Contractual Obligations: Certificates of Obligation Series 2013 2.50-3.00 %2013 2024 170,000 1,700,000 1,700,000 1,700,000$ Governmental Activities: Business-type Activities: During the year ended September 30, 2013, the Town issued $3,000,000 Certificates of Obligation (CO), Series 2013. The 2013 CO includes $1,300,000 for street reconstruction backed by the full faith and credit of the Town, and $1,700,000 for drainage improvements serviced by drainage utility fund revenue. The obligations are payable over the next fifteen years. Town Council Page 405 of 522 Meeting Date: Monday, April 7, 2014 NOTE 6. LONG-TERM DEBT – CONTINUED The following is a summary of long-term debt transactions of the Town for the year ended September 30, 2013: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: General Obligation Bonds $ 11,425,000 -$ $ (2,025,000) $ 9,400,000 $ 965,000 Contractual Obligations 634,000 1,300,000 (269,000) 1,665,000 33,000 Issuance Premium 80,149 33,794 (16,448) 97,495 15,762 Deferred Loss on Refunding (67,001)- 16,751 (50,250) (16,751) OPEB Liability 32,099 9,896 - 41,995 - Compensated Absences 61,140 251,559 (239,369) 73,330 11,075 Total Governmental Activities Long-term Liabilities $ 12,165,387 $ 1,595,249 $ (2,533,066) $ 11,227,570 $ 1,008,086 Beginning Ending Due Within Balance Additions Reductions Balance One Year Business-type Activities: Contractual Obligations $ - 1,700,000$ -$ $ 1,700,000 $ 140,000 Issuance Premium - 44,193 (737) 43,456 4,419 Total Governmental Activities Long-term Liabilities -$ 1,744,193$ (737)$ 1,743,456$ 144,419$ The annual requirements to amortize long-term debt outstanding of governmental activities as of September 30, 2013, are as follows: Year Ending Total September 30,Principal Interest Requirements 2014 965,000$ 341,920$ 1,306,920$ 2015 610,000 316,697 926,697 2016 525,000 300,074 825,074 2017 545,000 283,699 828,699 2018 570,000 265,799 835,799 2019-2023 2,985,000 1,010,576 3,995,576 2024-2028 2,475,000 444,766 2,919,766 2029-2033 725,000 45,169 770,169 Total 9,400,000$ 3,008,700$ 12,408,700$ General Obligation Bonds Governmental Activites Town Council Page 406 of 522 Meeting Date: Monday, April 7, 2014 NOTE 6. LONG-TERM DEBT – CONTINUED Year Ending Total eptember 30,Principal Interest Requirements 2014 33,000$ 57,025$ 90,025$ 2015 103,000 51,527 154,527 2016 103,000 48,226 151,226 2017 108,000 44,785 152,785 2018 113,000 41,259 154,259 2019-2023 605,000 150,145 755,145 2024-2028 600,000 49,115 649,115 Total 1,665,000$ 442,083$ 2,107,083$ Contractual Obligations Governmental Activites The annual requirements to amortize long-term debt outstanding of business-type activities as of September 30, 2013, are as follows: Year Ending Total September 30,Principal Interest Requirements 2014 140,000$ 46,147$ 186,147$ 2015 140,000 38,962 178,962 2016 145,000 35,400 180,400 2017 145,000 31,775 176,775 2018 150,000 28,088 178,088 2019-2023 805,000 80,919 885,919 2024-2028 175,000 2,625 177,625 Total 1,700,000$ 263,916$ 1,963,916$ Contractual Obligations Business-type Activities The general fund has been used to liquidate compensated absences and capital lease liabilities. NOTE 7. PROPERTY TAX Property tax is levied each October 1 on the assessed value listed as of the prior January 1 for all residential and commercial property located in the Town. Taxable assessed value represents the appraisal value less applicable exemptions authorized by the Town Council. Taxes are due on October 1, the levy date, and are delinquent if unpaid by the following January 31; after which time the Town has an enforceable lien with respect to both real and personal property. Under state law, property taxes levied on real property constitute a perpetual lien which cannot be forgiven without specific approval of the State Legislature. Penalties and interest are included for any payment received after January 31. Town Council Page 407 of 522 Meeting Date: Monday, April 7, 2014 NOTE 7. PROPERTY TAX – CONTINUED Property taxes at the fund level are recorded as receivables and deferred 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 have been recognized as revenue. Property taxes are recorded net of the allowance for uncollectible taxes Uncollectible personal property taxes can be written off upon expiration of the five year statute of limitations. NOTE 8. PENSION PLAN Texas Municipal Retirement System Plan Description The Town of Trophy Club provides pension benefits for all of its full-time employees through a nontraditional, joint contributory, hybrid defined benefit plan in the state-wide Texas Municipal Retirement System (TMRS), an agent multiple-employer public employee retirement system. Benefits depend upon the sum of the employee’s contributions to the plan, with interest, and Town-financed monetary credits, with interest. At the date the plan began, the Town granted monetary credits for service rendered before the plan began of a theoretical amount equal to two times what would have been contributed by the employee with interest, prior to establishment of the plan. Monetary credits for service since the plan began are a percentage (200%) of the employee’s accumulated contributions. In addition, the Town can grant, as often as annually, another type of monetary credit referred to as an updated service credit which is a theoretical amount which, when added to the employee’s accumulated contributions and the monetary credits for service since the plan began, would be the total monetary credits and employee contributions accumulated with interest if the current employee contribution rate and the Town matching percent had always been in existence and if the employee’s salary had always been the average of his salary in the last three years that are one year before the effective date. At retirement, the benefit is calculated as if the sum of the employee’s accumulated contributions with interest and the employer-financed monetary credits with interest were used to purchase an annuity. 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: Deposit rate 7% Matching ratio (Town to employee) 2-1 A member is vested after 5 years Members can retire at certain ages, based on the years of service with the Town. The service retirement eligibilities for the Town are 5 years at 60 years of age, or 20 years at any age. Town Council Page 408 of 522 Meeting Date: Monday, April 7, 2014 NOTE 8. PENSION PLAN – CONTINUED Texas Municipal Retirement System – Continued Contributions Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the Projected Unit Credit actuarial cost method. This rate consists of the normal cost contribution rate and the prior service cost contribution rate, which is calculated to be a level percent of payroll from year to year. The normal cost contribution rate finances the portion of an active member’s projected benefit allocated annually; the prior service contribution rate amortizes the unfunded (overfunded) actuarial liability (asset) over the applicable period for that city. Both the normal cost and prior service contribution rates include recognition of the projected impact of annually repeating benefits, such as Updated Service Credits and Annuity Increases. Both the employees and the Town make contributions monthly. Since the Town needs to know its contribution rate in advance for budgetary purposes, there is a one-year delay between the actuarial valuation that is the basis for the rate and the calendar year when the rate goes into effect (i.e. December 31, 2012 valuation is effective for rates beginning January 2014). Annual Pension Cost Three Year Trend Information Annual Percentage Net Pension Fiscal Pension of APC (Obligation) Year Cost (APC)Contributed Asset 2011 427,029$ 100%-$ 2012 467,621$ 100%-$ 2013 526,301$ 100%-$ As of December 31, 2012, the most recent actuarial valuation date, the plan was 71.2% funded. The actuarial accrued liability for benefits was $14,114,964, and the actuarial value of assets was $10,054,928 resulting in an unfunded actuarial accrued liability (UAAL) of $4,060,036. The covered payroll (annual payroll of active employees covered by the plan) was $4,957,838, and the ratio of the UAAL to the covered payroll was 81.9%. The following actuarial assumptions were used: Actuarial Cost Method Projected unit credit Amortization Method Level percent of payroll Remaining Amortization 25.2 years – closed period Asset Valuation Method 10-year smoothed market Investment Rate of Return 7.0% Projected Salary Increases Varies by age and service Includes Inflation at 3.0% Cost of Living Adjustments 2.1% (3.0% CPI) All assumptions for the December 31, 2012 valuations are contained in the 2012 TMRS Comprehensive Annual Financial Report, a copy of which may be obtained by writing to P.O. Box 149153, Austin, Texas 78714-9153. Town Council Page 409 of 522 Meeting Date: Monday, April 7, 2014 NOTE 9. OTHER POSTEMPLOYMENT BENEFITS Plan Description The Town provides post-employment medical, dental, and vision benefits (OPEB) for eligible retirees, their spouses and dependents through TML Intergovernmental Employee Benefits Pool, which covers both active and retired members. As of September 30, 2013, membership consisted of: Retirees and beneficiaries receiving benefits 1 Active employees 66 Total 67 The three optional benefit levels, TML Plan P85-50-20, TML Plan P85-100-25 and TML Plan P96- 200-5, are the same for retirees as those afforded to active employees. Regular full-time employees retiring from the Town have the option to continue medical insurance coverage until the retiree becomes eligible for Medicare or is eligible to be covered under another medical plan. Funding Policy The benefit levels and contribution rates are approved annually by the Town management and the Town Council as part of the budget process. By the Town not contributing anything toward this plan in advance, the Town employs a pay-as-you-go method through ensuring the annual retiree contributions are equal to the benefits that are paid on behalf of the retirees. The monthly Retiree health coverage contribution rates for offered benefit levels are as follows: TML Plan TML Plan TML Plan P85-50-20 P85-100-25 P96-200-5 Single Coverage 442$ 378$ 293$ Single + Spouse 1,231$ 1,012$ 782$ Single + Children 864$ 717$ 555$ Single + Family 1,559$ 1,276$ 986$ An irrevocable trust has not been established; therefore, the plan is not accounted for as a trust fund. The plan does not issue a separate financial report. Annual OPEB Cost and Net OPEB Obligation The Town’s annual OPEB cost is calculated based on the annual required contribution of the Town (ARC), an amount actuarially determined in accordance with the parameters of GASB 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial liabilities over a period not to exceed thirty years. The following table shows the components of the Town’s annual OPEB cost for the year, the amount contributed to the plan, and changes in the Town’s net OPEB obligation. Town Council Page 410 of 522 Meeting Date: Monday, April 7, 2014 NOTE 9. OTHER POSTEMPLOYMENT BENEFITS – CONTINUED Annual required contribution 13,990$ Interest on net OPEB obligation 1,444 Adjustment to annual required contribution (1,444) Annual OPEB cost 13,990 Contributions Made 4,094 Change in OPEB obligation 9,896 Net OPEB obligation (asset) - beginning of year 32,099 Net OPEB obligation (asset) - end of year 41,995$ The Town’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2011, 2012, and 2013 were as follows: Percentage of Net Fiscal Annual Annual OPEB OPEB Year OPEB Costs Cost Contributed Obligation 2011 18,497$ 32.30%25,682$ 2012 16,274$ 60.57%32,099$ 2013 13,990$ 29.26%41,995$ Funded Status and Funding Progress As of November 21, 2013, the most recent actuarial valuation date, the actuarial accrued liability for benefits was $81,122, all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) for fiscal year 2013 was $3,887,477, and the ratio of the unfunded actuarial accrued liability to the covered payroll was 2.09%. Actuarial Methods and Assumptions Projections of benefits are based on substantive plan (the plan understood by the employer and plan members) and include the type of benefits in force at the valuation date and the pattern of sharing benefits between the Town and the plan members at that point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and actuarial value of assets, consistent with the long-term perspective of the calculations. In the November 21, 2013 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions include a 4.5% investment rate of return (net of administrative expenses) and an annual healthcare cost trend rate of 8.0% initially, reduced by decrements to an ultimate rate of 4.5% after 7 years. The rate of inflation is assumed to be 3%. NOTE 10. Contributions The Town received contributions of $495,376 and $234,533, respectively, from the 4A Economic Development Corporation (4A) and 4B Economic Development Corporation (4B) during the year ended September 30, 2013 in order to defease debt related to the both the 4A and 4B. Additionally, the Town received contributions in the amount of $55,200 from 4B during the year ended September 30, 2013. These contributions represent payment for various items such as property maintenance and administrative services. The contributions have been recorded as part of intergovernmental revenue in the Town’s statement of revenues, expenditures, and changes in fund balance – governmental funds, and as expenses in the statement of activities for 4A and 4B. Town Council Page 411 of 522 Meeting Date: Monday, April 7, 2014 NOTE 11. RISK MANAGEMENT The Town is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Town has purchased commercial insurance to protect against these various risks of loss. There was no significant reduction in insurance coverage from the previous year. Settled claims for risks have not exceeded insurance coverage for the past three years. NOTE 12. PUBLIC UTILITY DISTRICT 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 Public Improvement District 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. On December 13, 2007 the Trophy Club Town Council approved the issuance and sale of $27,500,000 in bonds, known as Trophy Club Public Improvement No. 1 Special Assessment Revenue Bonds, Series 2007. These bonds were authorized in order to finance the authorized improvements found in the Service and Assessment Plan. An Assessment on each property located in the District will repay the bonds. The Town is acting only as an agent and has no obligation to support payment of the bonds, directly or indirectly. The Service and Assessment Plan included the following projects: Thoroughfare Improvements, Water Distribution System Improvements, Wastewater Collection System Improvements, Trails and Open Space, Elevated Water Storage, Thoroughfare Landscaping and Irrigation, Screening Walls and Entry Features, Public Parks, Drainage Improvements, and Construction Administration. NOTE 13. TROPHY CLUB MUNICIPAL UTILITY DISTRICT No.1 The Town entered into an agreement with Trophy Club Municipal Utility District No.1 (“the District”) in 2011 to provide support services to the District. Total payments received for services provided to the District under this agreement totaled $85,465 during the fiscal year ended September 30, 2013, and are recorded as miscellaneous revenue of the General Fund in the Town’s statement of revenues, expenditures and changes in fund balance. NOTE 14. RESTATEMENT OF BEGINNING NET POSITION AND FUND BALANCE In 2013, the Town restated the net position of the governmental activities. An accounting error related to the period allocation of annual electric franchise fee payments resulted in net position being overstated by $457,750. Additionally, as a result of prior year developer contributions not being captured as capital assets, water system and infrastructure assets were understated by $974,399 and the corresponding accumulated depreciation was understated by $120,388 as of October 1, 2012. Public Improvement District #1 assets completed and accepted by the Town in previous periods were disclosed as construction in progress rather than depreciable assets. The accumulated depreciation from prior periods related to these assets, which comprise improvements other than buildings, water system, and infrastructure assets, totals $1,020,546 as of October 1, 2012. The correction of these errors resulted in a $659,285 total decrease in beginning governmental activities net position. The governmental activities net position has been restated on the government-wide financial statements as follows: Town Council Page 412 of 522 Meeting Date: Monday, April 7, 2014 NOTE 14. RESTATEMENT OF BEGINNING NET POSITION AND FUND BALANCE - CONTINUED To correct franchise accounting error Net position, October 1, 2012, as restated $ 53,400,824 Activities $ 54,025,109Net position, October 1, 2012, as previously presented Governmental (457,750) To correct capital asset balances (166,535) In 2013, the Town restated the fund balance of the general fund. An accounting error related to the period allocation of annual electric franchise payments resulted in fund balance being overstated by $217,750. General Fund Fund Balance, October 1, 2012, as previously presented $ 3,348,852 To correct franchise accounting error (217,750) Fund Balance, October 1, 2012, as restated $ 3,131,102 NOTE 15. NEW AND FUTURE FINANCIAL REPORTING REQUIREMENTS The Governmental Accounting Standards Board (GASB) has issued the following statement which became effective for fiscal year 2013 and is presented in the Town’s financial statements. Statement No. 63 “Financial Report of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position” – This statement will standardize the presentation of deferred outflows of resources and deferred inflows of resources and their effect on a government’s net position. The only impact of the implementation of this standard was changing financial statement items previously called “net assets” to be titled “net position”. The Town has no items that are required by this statement to be presented as deferred outflows of resources or deferred inflows of resources. The GASB has issued the following statements which will become effective in future years. Statement No. 65 “Items Previously Reported as Assets and Liabilities.” – The objective of Statement No. 65 is to either properly classify certain items that were previously reported as assets and liabilities as deferred outflows of resources or deferred inflows of resources or to recognize certain items that were previously reported as assets and liabilities as outflows of resources or inflows of resources. This statement will become effective for the Town in fiscal year 2014. Statement No. 68, “Accounting and Financial Reporting for Pensions-an amendment of GASB Statement No. 27.” – This statement changes the focus of pension accounting for employers from whether they are responsibly funding their plan over time to a point-in-time liability that is reflected in the employer’s financial statements for any actuarially unfunded portion of pension benefits earned to date. This statement will become effective for the Town in fiscal year 2015. Management has not yet determined the effect of these statements on the financial statements; however, the impact of Statement No. 68 is expected to be significant as they will now reflect a previously unrecorded liability. The Town also expects the largest deferred inflows and outflows to be pension related. Town Council Page 413 of 522 Meeting Date: Monday, April 7, 2014 NOTE 16. SUBSEQUENT EVENTS The Town has evaluated all events and transactions that have occurred from October 1, 2013 up until March 28, 2014, the date the financial statements were issued, and determined that there are no transactions requiring additional recognition or disclosure. Town Council Page 414 of 522 Meeting Date: Monday, April 7, 2014 Town Council Page 415 of 522 Meeting Date: Monday, April 7, 2014 REQUIRED SUPPLEMENTARY INFORMATION Town Council Page 416 of 522 Meeting Date: Monday, April 7, 2014 FY2012-13 FY2011-12 FY2010-11 Actuarial valuation date 12/31/2012 12/31/2011 12/31/2010 Actuarial value of assets $ 10,054,928 $ 8,701,754 $ 7,520,704 Actuarial accrued liability 14,114,964 12,685,291 11,489,027 Percentage funded 71.2%68.6%65.5% Unfunded actuarial accrued liability 4,060,036 3,983,537 3,968,323 Annual covered payroll 4,957,838 4,465,244 4,200,873 Unfunded actuarial accrued liability as a percentage of covered payroll 81.9%89.2%94.5% Net pension obligation at beginning of period - - - Annual pension cost: Annual required contribution 526,301 467,621 427,029 Less: contributions made (526,301) (467,621) (427,029) Net pension obligation at end of period $ - $ - $ - Town Council Page 417 of 522 Meeting Date: Monday, April 7, 2014 2013 2012 2011 Annual required contribution 13,990$ 16,274$ 18,497$ Interest on prior year Net OPEB obligation 1,444 1,156 592 Adjustment to annual required contribution (1,444) (1,156) (592) Annual OPEB cost 13,990 16,274 18,497 Contributions made 4,094 9,857 5,975 Increase in net OPEB obligation 9,896 6,417 12,522 Net Obligation - beginning of year 32,099 25,682 13,160 Net Obligation - end of year 41,995$ 32,099$ 25,682$ Percentage of OPEB costs contributed 29.26%60.57%32.30% Actuarial accrued liability 81,122$ 109,475$ 101,926$ Actuarial value of plan assets - - - Unfunded actuarial accrued liability 81,122$ 109,475$ 101,926$ Funded ratio 0.0%0.0%0.0% Covered payroll 3,887,477 4,465,244 4,200,873 Unfunded actuarial accrued liability as a percentage of covered payroll 2.09%2.45%2.43% Town Council Page 418 of 522 Meeting Date: Monday, April 7, 2014 Variance with Final Budget Original Final Actual Positive (Negative) Revenues Ad valorem taxes 4,135,536$ 4,135,536$ 4,149,900$ 14,364$ Sales and mixed beverage taxes 634,170 634,170 609,888 (24,282) Franchise taxes 675,654 675,654 718,952 43,298 Licenses and permits 876,685 876,685 968,285 91,600 Intergovernmental 147,534 147,534 158,987 11,453 Charges for services 481,239 481,239 592,146 110,907 Fines 140,000 140,000 160,614 20,614 Investment income 4,000 4,000 4,921 921 Grant Revenue - - 75,599 75,599 Miscellaneous 200,934 200,934 336,497 135,563 Total revenues 7,295,752 7,295,752 7,775,789 480,037 Expenditures: Current Emergency medical services 783,015 764,484 768,367 (3,883) Manager's office 691,823 691,823 707,166 (15,343) Human resources 113,906 113,906 102,771 11,135 Finance 368,303 368,303 372,816 (4,513) Information systems 352,134 352,134 342,319 9,815 Legal 168,638 168,638 171,157 (2,519) Police 1,874,509 1,854,509 2,068,309 (213,800) Court 83,946 83,946 68,731 15,215 Parks 938,753 933,824 947,734 (13,910) Recreation 611,551 611,551 543,762 67,789 Facilities management 72,961 72,961 75,344 (2,383) Community development 329,026 329,026 319,168 9,858 Planning and zoning 164,620 164,620 257,138 (92,518) Streets 754,403 774,403 766,411 7,992 Total expenditures 7,307,588 7,284,128 7,511,193 (227,065) Excess (deficiency) of revenues over (under) expenditures (11,836) 11,624 264,596 252,972 Other financing sources (uses): Transfer in 12,300 12,300 12,300 - Transfer out - (820,750) (780,734) 40,016 Total other financing uses 12,300 (808,450) (768,434) 40,016 Net change in fund balance 464 (796,826) (503,838) 292,988 Fund Balances - beginning of year, as restated 3,131,102 3,131,102 3,131,102 - Fund Balances - end of year 3,131,566$ 2,334,276$ 2,627,264$ 292,988$ Budgeted amounts Town Council Page 419 of 522 Meeting Date: Monday, April 7, 2014 NOTE 1. BUDGETARY CONTROL The Town follows these procedures in establishing the budgetary data reflected in the financial statements: 1. Prior to September 1, the Town Manager submits to the Town Council a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through passage of an ordinance. 4. The Town Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the Town Council. 5. Formal budgetary integration is employed as a management control device during the year for the General Fund. Annual Appropriated budgets are consistent with U.S. generally accepted accounting principles and are legally adopted for the general fund, the Trophy Club park fund and the debt service fund. All appropriations lapse on September 30 of the fiscal year. Expenditures were in excess of appropriations for the following: • Emergency Medical Services ($3,883) • Manager’s Office ($15,343) • Finance ($4,513) • Legal ($2,519) • Police ($213,800) • Facilities Management ($2,383) • Parks ($13,910) • Planning and zoning ($92,518) Town Council Page 420 of 522 Meeting Date: Monday, April 7, 2014 Town Council Page 421 of 522 Meeting Date: Monday, April 7, 2014 COMBINING AND BUDGETARY COMPARISON SCHEDULE Town Council Page 422 of 522 Meeting Date: Monday, April 7, 2014 Variance with Final Budget Original Final Actual Positive (Negative) Revenues Ad valorem taxes 1,164,968$ 1,164,968$ 1,180,878$ 15,910$ Investment income 1,000 1,000 832 (168) Miscellaneous 10,650 10,650 - (10,650) Intergovernmental revenue 223,437 729,909 729,909 - Total revenues 1,400,055 1,906,527 1,911,619 5,092 Expenditures: Debt service: Principal 1,027,000 2,294,000 2,294,000 - Interest and fiscal charges 447,681 453,717 456,417 (2,700) Total expenditures 1,474,681 2,747,717 2,750,417 (2,700) Deficiency of revenues under expenditures (74,626) (841,190) (838,798) 2,392 Other financing sources (uses): Transfer in 79,626 846,224 864,253 18,029 Total other financing sources 79,626 846,224 864,253 18,029 Net change in fund balance 5,000 5,034 25,455 20,421 Fund Balances - beginning of year 94,267 94,267 94,267 - Fund Balances - end of year 99,267$ 99,301$ 119,722$ 20,421$ Budgeted amounts Town Council Page 423 of 522 Meeting Date: Monday, April 7, 2014 NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS HOTEL/ MOTEL FUND Accounts for occupancy taxes charged to hotels. STREET MAINTENANCE SALES TAX FUND Accounts for sales taxes specifically restricted for street improvements. 25TH ANNIVERSARY FUND Accounts for contributions designated for the Town’s 25th anniversary celebration. COURT TECHNOLOGY FUND Accounts for court fees specifically restricted for court technology expenditures. COURT SECURITY FUND Accounts for court fees specifically restricted for court security expenditures. CRIME CONTROL AND PREVENTION DISTRICT FUND Accounts for sales taxes specifically restricted for crime control and prevention. Town Council Page 424 of 522 Meeting Date: Monday, April 7, 2014 Hotel/Motel Fund Street Maintenance Sales Tax Fund 25th Anniversary Fund ASSETS Cash and cash equivalents 65,800$ 25,095$ 2,114$ Sales taxes receivable - 23,007 - Accounts receivable (net of allowance for uncollectibles)21,425 - - Total assets 87,225$ 48,102$ 2,114$ LIABILITIES AND FUND BALANCES Accounts payable -$ 399$ -$ Due to other funds - 1,003 - Total liabilities - 1,402 - FUND BALANCES Restricted for: Tourism 87,225 - - Street maintenance - 46,700 - Town 25th anniversary - - 2,114 Crime Control and Prevention Court - - - Total fund balances 87,225 46,700 2,114 Total liabilities and fund balances 87,225$ 48,102$ 2,114$ Town Council Page 425 of 522 Meeting Date: Monday, April 7, 2014 Court Technology Fund Court Security Fund Crime Control Prevention District Fund Total Non-major Governmental Funds 38,780$ 22,147$ -$ 153,936$ - - 23,007 46,014 - - - 21,425 38,780$ 22,147$ 23,007$ 221,375$ -$ -$ -$ 399$ - - - 1,003 - - - 1,402 - - - 87,225 - - - 46,700 - - - 2,114 23,007 23,007 38,780 22,147 - 60,927 38,780 22,147 23,007 219,973 38,780$ 22,147$ 23,007$ 221,375$ Town Council Page 426 of 522 Meeting Date: Monday, April 7, 2014 Hotel/Motel Fund Street Maintenance Sales Tax Fund 25th Anniversary Fund Revenues: Occupancy taxes 108,170$ -$ -$ Sales Taxes - 148,159 - Fines - - - Investment income 11 - - Total revenues 108,181 148,159 - Expenditures: General government 22,277 - - Streets - 139,010 - Total expenditures 22,277 139,010 - Excess of revenues over expenditures 85,904 9,149 - Other financing sources (uses): Transfer out - (38,448) - Total Other financing sources (uses)- (38,448) - Net change in fund balances 85,904 (29,299) - Fund balances - beginning 1,321 75,999 2,114 Fund balances - ending 87,225$ 46,700$ 2,114$ Town Council Page 427 of 522 Meeting Date: Monday, April 7, 2014 Court Technology Fund Court Security Fund Crime Control Prevention District Fund Total Non-major Governmental Funds -$ -$ -$ 108,170$ - - 23,007 171,166 6,266 4,699 - 10,965 - - - 11 6,266 4,699 23,007 290,312 - - - 22,277 - - - 139,010 - - - 161,287 6,266 4,699 23,007 129,025 - - - (38,448) - - - (38,448) 6,266 4,699 23,007 90,577 32,514 17,448 - 129,396 38,780$ 22,147$ 23,007$ 219,973$ Town Council Page 428 of 522 Meeting Date: Monday, April 7, 2014 FIDICUARY FUND PUBLIC IMPROVEMENT DISTRICT (PID) NO. 1 DEBT SERVICE AGENCY FUND Accounts for bond proceeds, assessments and related debt associated with the issuance of bonds issued by the town as an agent for the Public Improvement District. Town Council Page 429 of 522 Meeting Date: Monday, April 7, 2014 PID No. 1 Debt Service Balance Balance September September ASSETS:2012 ADDITIONS DEDUCTIONS 2013 Cash and cash equivalents 4,306,341$ -$ 7,794$ 4,298,547$ Total Assets 4,306,341$ -$ 7,794$ 4,298,547$ LIABILITIES: Due to debt holders 4,306,341$ -$ 7,794$ 4,298,547$ Total Liabilities 4,306,341$ -$ 7,794$ 4,298,547$ Town Council Page 430 of 522 Meeting Date: Monday, April 7, 2014 DISCRETELY PRESENTED COMPONENT UNITS 4A ECONOMIC DEVELOPMENT FUND Accounts for the use of 4A economic development sales tax revenue. 4B ECONOMIC DEVELOPMENT FUND Accounts for the use of 4B economic development sales tax revenue. Town Council Page 431 of 522 Meeting Date: Monday, April 7, 2014 Variance with Final Budget Original Final Actual Positive (Negative) Revenues: Sales taxes 313,045$ 313,045$ 174,473$ (138,572)$ Investment income 200 200 - (200) Total revenues 313,245 313,245 174,473 (138,772) Expenditures: General government 313,245 496,376 496,375 1 Total expenditures 313,245 496,376 496,375 1 Excess of revenues over expenditures - (183,131) (321,902) (138,771) Fund Balance - beginning of year 499,798 499,798 499,798 - Fund Balance - end of year 499,798$ 316,667$ 177,896$ (138,771)$ Budgeted amounts Town Council Page 432 of 522 Meeting Date: Monday, April 7, 2014 Variance with Final Budget Original Final Actual Positive (Negative) Revenues Charges for services 40,000$ 40,000$ -$ (40,000)$ Sales taxes 156,523 156,523 246,997 90,474 Investment income 100 100 - (100) Total revenues 196,623 196,623 246,997 50,374 Expenditures: General government 196,623 454,373 441,001 13,372 Total expenditures 196,623 454,373 441,001 13,372 Excess (deficiency) of revenues over (under) expenditures - (257,750) (194,004) 63,746 Fund Balances - beginning of year 382,708 382,708 382,708 - Fund Balances - end of year 382,708$ 124,958$ 188,704$ 63,746$ Budgeted amounts Town Council Page 433 of 522 Meeting Date: Monday, April 7, 2014 STATISTICAL SECTION Town Council Page 434 of 522 Meeting Date: Monday, April 7, 2014 1-4 5-8 9-11 12-13 14-15Operating Information Revenue Capacity These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. 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 comprehensive annual financial reports for the relevant year. These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Demographic and Economic Information These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. Debt Capacity 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. STATISTICAL SECTION Financial Trends This part of the Town of Trophy Club's comprehensive annual 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 government's overall financial health. Contents Tables Town Council Page 435 of 522 Meeting Date: Monday, April 7, 2014 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Governmental activities Net investment in capital assets 12,798,201$ 12,937,027$ 18,482,623$ 12,598,102$ 24,467,178$ 33,443,249$ 36,491,021$ 47,668,302$ 50,050,855$ 54,425,735$ Restricted for debt service 879,984 - 663 42,164 130,709 40,716 39,003 57,471 65,590 95,507 Restricted for capital projects - - - - - - 996,425 - Restricted for crime control and prevention - - - - - - - 23,007 Restrictied for tourism - - - - - - 1,321 87,225 Restricted for street maintenance - - - - - - 75,999 46,700 Restricted for anniversary events - - - - - - 2,114 2,114 Restricted for court - - - - - - 49,962 60,927 Unrestricted 1,675,338 1,740,263 (4,334,834) 1,689,440 11,115,277 6,197,041 4,569,344 2,689,482 2,158,558 2,896,674 Total governmental activities net position 15,353,523$ 14,677,290$ 14,148,452$ 14,329,706$ 35,713,164$ 39,681,006$ 41,099,368$ 50,415,255$ 53,400,824$ 57,637,889$ Business-type activities Net investment in capital assets -$ -$ -$ -$ -$ -$ -$ -$ -$ 52,848$ Restricted - - - - - - - - - - Unrestricted - - - - - - - 12,541 46,866 230,592 Total business-type activities net position -$ -$ -$ -$ -$ -$ -$ 12,541$ 46,866$ 283,440$ Primary government Net investment in capital assets 12,798,201$ 12,937,027$ 18,482,623$ 12,598,102$ 24,467,178$ 33,443,249$ 36,491,021$ 47,668,302$ 50,050,855$ 54,478,583$ Restricted for debt service 879,984 - 663 42,164 130,709 40,716 39,003 57,471 65,590 95,507 Restricted for capital projects - - - - - - 996,425 - Restricted for crime control and prevention - - - - - - - 23,007 Restrictied for tourism - - - - - - 1,321 87,225 Restricted for street maintenance - - - - - - 75,999 46,700 Restricted for anniversary events - - - - - - 2,114 2,114 Restricted for court - - - - - - 49,962 60,927 Unrestricted 1,675,338 1,740,263 (4,334,834) 1,689,440 11,115,277 6,197,041 4,569,344 2,702,023 2,205,424 3,127,266 Total primary governmental net position 15,353,523$ 14,677,290$ 14,148,452$ 14,329,706$ 35,713,164$ 39,681,006$ 41,099,368$ 50,427,796$ 53,447,690$ 57,921,329$ Source: City audited financial records (1) The Town implemented the GASB 34 model of reporting fiscal year ending September 30, 2004. Note: The Town did not have business-type activities prior to fiscal year 2011. Town Council Page 436 of 522 Meeting Date: Monday, April 7, 2014 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Expenses Governmental activities: General government 1,267,005$ 1,165,820$ 1,009,358$ 1,026,163$ 1,475,709$ 1,421,942$ 1,717,961$ 2,807,237$ 1,984,137$ 2,129,688$ Public safety 2,089,858 2,315,846 2,380,610 2,312,318 3,041,753 2,013,822 2,211,108 2,275,778 2,392,798 2,898,737 Highways & streets 150,095 142,116 198,671 131,922 526,621 1,326,986 1,335,674 1,372,501 1,829,799 2,234,140 Community development 2,301,253 388,260 1,405,385 982,406 415,552 298,287 353,894 345,804 485,614 599,872 Water and sewer - - - - - - - 617,001 92 261,106 Culture and recreation - 1,682,217 1,176,295 1,539,859 1,930,105 1,224,521 1,596,619 1,844,573 1,564,660 2,037,590 Interest on long-term debt 277,816 266,346 249,829 261,125 2,532,457 391,346 391,593 558,473 498,569 489,337 Total governmental activities expenses 6,086,027 5,960,605 6,420,148 6,253,793 9,922,197 6,676,904 7,606,849 9,821,367 8,755,669 10,650,470 Business-type activities: Trophy Club Park - - - - - - - 98,935 130,185 98,718 Town Storm Drainage - - - - - - - 156,461 96,488 121,269 Total business-type activities expenses - - - - - - - 255,396 226,673 219,987 Total primary government expenses 6,086,027$ 5,960,605$ 6,420,148$ 6,253,793$ 9,922,197$ 6,676,904$ 7,606,849$ 10,076,763$ 8,982,342$ 10,870,457$ Program Revenues Governmental activities: Charges for services Community Development - - - - - - 713,920 792,065 1,128,234 968,285 Water and Sewer - - - - - - 305,580 612,722 2,040 - Other 581,763 710,275 687,476 931,685 1,284,324 1,551,633 688,554 669,827 854,349 793,205 Operating grants and contributions 677,451 799,680 895,044 909,784 977,774 55,801 385,429 340,748 342,894 952,648 Capital grants and contributions 1,507,105 - - - 27,776,510 3,736,920 323,822 10,627,098 2,682,302 4,793,132 Total governmental activities program revenues 2,766,319 1,509,955 1,582,520 1,841,469 30,038,608 5,344,354 2,417,305 13,042,460 5,009,819 7,507,270 Business-type activities: Charges for services - - - - - - - 253,034 325,380 506,205 Operating grants and contributions - - - - - - - - - - Capital grants and contributions - - - - - - - - - - Total business-type activities program revenues - - - - - - - 253,034 325,380 506,205 Total primary government program revenues 2,766,319$ 1,509,955$ 1,582,520$ 1,841,469$ 30,038,608$ 5,344,354$ 2,417,305$ 13,295,494$ 5,335,199$ 8,013,475$ (continued) Town Council Page 437 of 522 Meeting Date: Monday, April 7, 2014 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Net (Expenses) Revenue Governmental activities (3,319,708)$ (4,450,650)$ (4,837,628)$ (4,412,324)$ 20,116,411$ (1,332,550)$ (5,189,544)$ 3,221,093$ (3,745,850)$ (3,143,200)$ Business-type activities - - - - - - - (2,362) 98,707 286,218 Total primary government net expenses (3,319,708)$ (4,450,650)$ (4,837,628)$ (4,412,324)$ 20,116,411$ (1,332,550)$ (5,189,544)$ 3,218,731$ (3,647,143)$ (2,856,982)$ General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property taxes 2,469,138$ 2,531,828$ 2,650,351$ 2,906,229$ 3,217,051$ 3,639,192$ 3,889,157$ 4,480,999$ 4,897,615$ 5,334,140$ Sales and mixed beverage taxes 774,176 347,716 430,950 605,776 608,218 588,362 674,131 631,561 754,105 781,054 Other taxes 395,739 404,337 466,794 455,944 515,205 563,340 537,644 648,400 706,065 828,338 Intergovernmental revenue - 271,190 264,885 280,086 254,572 260,507 409,454 - - - Investment income 35,256 80,815 91,439 176,939 465,064 85,800 17,634 15,162 7,983 7,193 Miscellaneous revenues 33,810 138,531 159,487 168,604 629,225 163,192 126,949 333,497 301,269 379,896 Transfers - - - - (4,422,288) - - 75,819 64,382 49,644 Total governmental activities 3,708,119 3,774,417 4,063,906 4,593,578 1,267,047 5,300,393 5,654,969 6,185,438 6,731,419 7,380,265 Business-type activities: Investment Income - - - - - - - 78 - - Special Items - - - - - - - - - - Transfers - - - - - - - (75,819) (64,382) (49,644) Total business-type activities - - - - - - - (75,741) (64,382) (49,644) Total primary government 3,708,119$ 3,774,417$ 4,063,906$ 4,593,578$ 1,267,047$ 5,300,393$ 5,654,969$ 6,109,697$ 6,667,037$ 7,330,621$ Change in Net Position Governmental activities 388,411$ (676,233)$ (773,722)$ 181,254$ 21,383,458$ 3,967,843$ 465,425$ 9,406,531$ 2,985,569$ 4,237,065$ Business-type activities - - - - - - - (78,103) 34,325 236,574 Total primary government 388,411$ (676,233)$ (773,722)$ 181,254$ 21,383,458$ 3,967,843$ 465,425$ 9,328,428$ 3,019,894$ 4,473,639$ Source: Town audited financial records (1) The Town implemented the GASB 34 model of reporting fiscal year ending September 30, 2004. Town Council Page 438 of 522 Meeting Date: Monday, April 7, 2014 2004 2005 2006 2007 General Fund Nonspendable for prepaids -$ -$ -$ -$ Assigned for capital expenditures Unassigned Reserved 26,202 27,564 122,236 71,195 Unreserved 1,647,522 1,452,181 1,005,073 1,335,796 Total general fund 1,673,724$ 1,479,745$ 1,127,309$ 1,406,991$ All Other Governmental Funds Restricted for: Debt Service -$ -$ -$ -$ Capital Projects - - - - Tourism - - - - Street Maintenance - - - - Town 25th anniversary - - - - Water Services - - - - Court - - - - Crime Control and Prevention - - - - Unassigned - - - - Reserved for: Debt service -$ 10,009$ 13,326$ 74,060$ Prepaid items - - - - Encumbrances - - - - Capital projects funds - - - - Unreserved, reported in: Debt service 8,875 - - - Special revenue funds 192,201 7,482 246 (1,531) Capital projects funds 869,180 811,140 80 3,065,681 Total all other governmental funds 1,070,256$ 828,631$ 13,652$ 3,138,210$ Source: Town audited financial records (1) The Town implemented the GASB 34 model of reporting fiscal year ending September 30, 2004. Town Council Page 439 of 522 Meeting Date: Monday, April 7, 2014 2008 2009 2010 2011 2012 2013 -$ -$ -$ 2,620$ 796$ 796$ 228,138 228,138 228,138 2,412,034 2,902,168 2,398,330 97,355 56,968 57,486 - - - 1,830,233 2,010,869 2,056,334 - - - 1,927,588$ 2,067,837$ 2,113,820$ 2,642,792$ 3,131,102$ 2,627,264$ -$ -$ -$ 85,388$ 94,267$ 119,722$ - - - 1,599,988 996,425 2,065,759 - - - 1,890 1,321 87,225 - - - 34,750 75,999 46,700 - - - 2,114 2,114 2,114 - - - 12,788 - - - - - - 49,962 60,927 - - - - - 23,007 - - - (26,477) (257,350) (11,517) 152,253$ 63,305$ 83,067$ -$ -$ -$ - - 1,567 - - - - - 48,000 - - - - 3,750,206 6,709,402 - - - - - - - - - 18,607 8,231 151,970 - - - 10,193,492 - - - - - 10,364,352$ 3,821,742$ 6,994,006$ 1,710,441$ 962,738$ 2,393,937$ Town Council Page 440 of 522 Meeting Date: Monday, April 7, 2014 2004 2005 2006 2007 Revenues Taxes Ad valorem taxes 2,475,244$ 2,525,331$ 2,627,333$ 2,903,193$ Sales and mixed beverage taxes 774,176 347,716 430,950 605,776 Franchise taxes 395,739 400,759 444,095 447,956 Hotel/motel - - - - Licenses, permits & fees 197,595 331,218 207,539 215,251 Inter-governmental 1,272,648 1,084,687 1,173,462 1,104,134 Charges for services 219,135 304,499 320,926 570,063 Fines 89,268 88,950 138,801 99,541 Contributions - - - - Investment Income 35,256 80,814 91,439 176,939 Grant revenue - - - - Sales taxes - - - - Miscellaneous 96,143 128,964 159,412 207,719 Total revenues 5,555,204 5,292,938 5,593,957 6,330,572 Expenditures Current: General government 1,290,456 1,247,417 1,034,432 1,091,305 Public safety 2,243,084 2,310,747 2,415,056 2,360,669 Highways & Streets 19,059 10,195 66,750 - Community development 1,366,414 419,919 847,830 871,553 Water and sewer - - - - Culture & Recreation - 1,025,036 1,057,322 1,229,661 Debt Service: Principal 265,000 280,000 290,000 305,000 Interest 278,331 266,701 250,897 291,924 Other Charges 1,431 - - - Capital Outlay 313,236 736,589 820,629 629,681 Total expenditures 5,777,011 6,296,604 6,782,916 6,779,793 Excess of revenues over (under) expenditures (221,807) (1,003,666) (1,188,959) (449,221) OTHER FINANCING SOURCES (USES) Proceeds from capital lease obligation 73,198 72,743 21,544 119,461 Proceeds from contractual obligations - - - 474,000 Proceeds of bank loan - - - - Proceeds from bonds - 688,000 - 3,260,000 Premium on bonds - - - - Payment to refunded bond escrow agent - - - - Transfer from other funds 347,748 129,146 - 60,002 Transfer to other funds (347,748) (129,146) - (60,002) Total other financing sources (uses)73,198 760,743 21,544 3,853,461 NET CHANGE IN FUND BALANCES (148,609)$ (242,923)$ (1,167,415)$ 3,404,240$ Debt service as a percentage of non-capital 14.97%14.52%12.33%13.38% expenditures Source: Town audited financial records (1) The Town implemented the GASB 34 model of reporting fiscal year ending September 30, 2004. Town Council Page 441 of 522 Meeting Date: Monday, April 7, 2014 2008 2009 2010 2011 2012 2013 3,219,061$ 3,623,124$ 3,890,927$ 4,457,829$ 4,916,886$ 5,330,778$ 608,218 588,362 541,711 631,561 754,105 781,054 481,459 546,271 519,959 608,806 693,722 718,952 25,705 17,069 17,685 22,644 20,543 108,170 376,628 631,895 719,333 798,520 1,128,234 968,285 1,232,346 235,715 237,756 375,749 342,894 888,896 776,088 794,185 868,571 1,140,556 670,186 592,146 106,092 140,553 120,151 167,461 157,143 171,579 27,415,006 3,736,920 709,251 265,426 322,536 1,472 465,064 85,800 17,634 15,162 7,983 7,193 361,504 50,191 171,698 318,954 1,400,252 490,850 - - 132,420 - - - 659,254 178,594 126,949 335,796 82,057 388,894 35,726,425 10,628,679 8,074,045 9,138,464 10,496,541 10,448,269 1,458,474 1,523,604 1,722,229 1,763,048 1,968,287 1,844,939 3,082,797 1,944,643 2,169,477 2,237,263 2,408,103 2,905,923 593,444 791,304 568,619 811,854 2,017,548 1,067,962 317,973 265,162 344,278 189,425 481,473 576,306 - - - 617,001 92 - 1,296,752 1,230,193 1,393,751 1,523,133 1,659,656 1,491,496 447,000 515,000 540,000 803,000 885,000 2,294,000 460,741 389,921 371,721 551,955 475,266 456,417 2,078,496 - 82,245 74,324 21,200 29,367 14,078,557 10,394,523 3,223,478 5,390,630 1,403,691 237,936 23,814,234 17,054,350 10,415,798 13,961,633 11,320,316 10,904,346 11,912,191 (6,425,671) (2,341,753) (4,823,169) (823,775) (456,077) 256,836 23,310 - - - - - - 5,560,000 - - - - - - - - - - - - 2,790,000 500,000 1,300,000 - - - 118,904 33,794 - - - (2,825,503) - - 123,280 104,700 276,317 185,835 191,878 876,553 (4,545,568) (104,700) (276,317) (110,016) (127,496) (826,909) (4,165,452) 23,310 5,560,000 159,220 564,382 1,383,438 7,746,739$ (6,402,361)$ 3,218,247$ (4,663,949)$ (259,393)$ 927,361$ 17.16%14.47%12.79%16.66%16.93%26.71% Town Council Page 442 of 522 Meeting Date: Monday, April 7, 2014 Less:Total Taxable Total Direct Fiscal Real Non Real Tax Exempt Assessed Tax Year Property Property Property Value Rate 2004 549,351,537 11,795,494 12,242,025 548,905,006 0.43051 2005 563,361,650 12,932,189 13,860,232 562,433,607 0.43051 2006 557,098,576 20,565,996 14,477,096 563,187,476 0.43051 2007 669,790,841 15,603,238 18,941,759 666,452,320 0.43051 2008 728,292,523 31,439,675 30,732,229 728,999,969 0.43051 2009* 802,085,464 30,781,322 43,426,286 789,440,500 0.45551 2010 861,983,993 28,133,834 49,316,322 840,801,505 0.47000 2011 901,333,893 24,792,616 52,794,045 873,332,464 0.51500 2012 971,822,347 23,862,338 54,212,507 941,472,178 0.53000 2013 1,068,605,127 24,460,719 59,911,204 1,033,154,642 0.51854 Source:Denton & Tarrant County Central Appraisal District Certified Roll Note: Total Taxable Assessed Value is not adjusted for tax ceilings. *Tarrant County inlcuded beginning in FY 2009 (Tax year 2008) Estimated Market Value (1) The Town implemented the GASB 34 model of reporting fiscal year ending September 30, 2004. Town Council Page 443 of 522 Meeting Date: Monday, April 7, 2014 Town Council Page 444 of 522 Meeting Date: Monday, April 7, 2014 Fiscal Operating Debt Service Total City Northwest Trophy Club Trophy Club Denton Year Mileage Mileage Mileage ISD MUD #1 MUD #2 County 2004 0.377510 0.053000 0.430510 1.834810 0.280000 0.339000 0.247170 2005 0.377510 0.053000 0.430510 1.819300 0.280000 0.349000 0.254800 2006 0.359630 0.070880 0.430510 1.819300 0.280000 0.349000 0.246480 2007 0.367230 0.063280 0.430510 1.665000 0.250000 0.299000 0.231920 2008 0.351040 0.079470 0.430510 1.335050 0.230000 0.279230 0.235890 2009 0.374310 0.081200 0.455510 1.335000 0.225000 0.264230 0.235770 2010 0.388380 0.081620 0.470000 1.355000 0.205000 0.205000 0.249800 2011 0.397220 0.117780 0.515000 1.375000 0.195000 - 0.273900 2012 0.415013 0.114987 0.530000 1.375000 0.175000 - 0.277357 2013 0.403543 0.115000 0.518543 1.375000 0.133390 - 0.282867 Source: Denton & Tarrant County Appraisal Districts (1) The Town implemented the GASB 34 model of reporting fiscal year ending September 30, 2004. Town of Trophy Club Town Council Page 445 of 522 Meeting Date: Monday, April 7, 2014 Overlapping Rates Total Tarrant Tarrant Total Total Direct & Trophy Club Tarrant County County MUD #1 MUD #2 Overlapping PID #1 ESD County College Hospital Mileage Mileage Rates - - - - 2.845490$ 2.851490$ 3.131490$ - - - - 2.837610$ 2.853610$ 3.133610$ - - - - 2.847170$ 2.845290$ 3.125290$ - - - - 2.640710$ 2.626430$ 2.876430$ - - - - 2.310920$ 2.280680$ 2.510680$ - 0.264000 0.137960 0.227897 2.734440$ 2.920367$ 3.145367$ 0.109140 0.264000 0.137670 0.227897 2.872230$ 3.018507$ 3.223507$ 0.109250 0.264000 0.137640 0.227897 2.987570$ N/A 3.097687$ 0.109250 0.264000 0.148970 0.227897 2.994564$ N/A 3.107474$ 0.104000 0.264000 0.149500 0.227897 2.942300$ N/A 3.055197$ Town Council Page 446 of 522 Meeting Date: Monday, April 7, 2014 Percentage of Percentage of Taxable Total Taxable Taxable Total Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value (2)Value Rank Value (3) Cnl Retmt CRSI Trophy Cl Tx LP 17,000,000 1 1.65% Trophy Club 12 LLC 14,800,000 2 1.43% Armore Trophy Club LLC 6,903,991 3 0.67% Trophy Club Medical Center 5,881,466 4 0.57% Standard Pacific of Texas LP 5,816,090 5 0.56% Oncor Electric Delivery Company 5,175,310 6 0.50% 4663 Okeechobee Blvd. and Palm Beach Holdings 5,000,000 7 0.48% Clubcorp Golf Tex LP P/S 4,370,072 8 0.42% Lennar Homes of Texas Land & Construction LTD 4,209,803 9 0.41% Trophy Club Equities 3,575,000 10 0.35% Clubcorp Golf Tex LP P/S 6,799,998 1 1.24% Beck Property Trophy Club LP 5,053,898 2 0.92% Oncor Electric Delivery Company 3,860,530 3 0.70% TC Platations LTD P/S 3,420,880 4 0.62% Trophy Club 114 LP P/S 3,337,610 5 0.61% Terra/Knoll LTD 2,923,447 6 0.53% TC Quorum LTD P/S 1,885,360 7 0.34% Trophy Club Exec 1,885,000 8 0.34% Oakmont Ent Inc 1,771,367 9 0.32% TC Indian Creek LTD P/S 1,614,170 10 0.29% Totals 72,731,732$ 7.04%32,552,260$ 5.93% Source: Denton County Appraisal District and Tarrant County Apprisal District (1) The Town implemented the GASB 34 model of reporting fiscal year ending September 30, 2004. (2) Total taxable value including real and personal property for tax year 2012 (fiscal year 2013) is $1,033,154,642 (3) Total taxable value including real and personal property for tax year 2003 (fiscal year 2004) is $548,905,006 2013 2004 Town Council Page 447 of 522 Meeting Date: Monday, April 7, 2014 Total Tax Collections in Fiscal Levy for Subsequent Year Fiscal Year Amount Percentage of levy Years Amount Percentage of levy 2004 2,526,645 2,499,357 98.92%26,858 2,526,215 99.98% 2005 2,634,681 2,609,652 99.05%24,458 2,634,109 99.98% 2006 2,881,601 2,851,921 98.97%29,841 2,881,762 100.01% 2007 3,196,891 3,161,725 98.90%35,694 3,197,419 100.02% 2008 3,650,949 3,621,376 99.19%28,133 3,649,509 99.96% 2009 3,563,202 3,525,248 98.93%35,693 3,560,941 99.94% 2010 3,864,014 3,836,568 99.29%23,937 3,860,505 99.91% 2011 4,446,960 4,414,699 99.27%22,926 4,437,625 99.79% 2012 4,858,136 4,838,092 99.59%9,863 4,847,955 99.79% 2013 5,259,719 5,244,699 99.71%- 5,244,699 99.71% Source: Denton County Tax Assessor Collector (1) The Town implemented the GASB 34 model of reporting fiscal year ending September 30, 2004. Total Collections to DateFiscal Year of the Levy Collected within the Town Council Page 448 of 522 Meeting Date: Monday, April 7, 2014 General Certificates General Certificates Total Percentage Fiscal Obligation of Capital Obligation of Capital Primary of Personal Per Year Bonds Obligation Leases Bonds Obligation Leases Government Income (2)Capita 2004 5,750,000 - - - - - 5,750,000 4.73% 803 2005 5,470,000 620,000 - - - - 6,090,000 2.87% 809 2006 5,180,000 590,000 - - - - 5,770,000 2.35% 749 2007 8,135,000 989,000 - - - - 9,124,000 3.62% 1,175 2008 7,755,000 922,000 - - - - 8,677,000 3.40% 1,152 2009 7,310,000 852,000 - - - - 8,162,000 3.28% 1,074 2010 12,400,000 782,000 92,240 - - - 13,274,240 4.92% 1,618 2011 11,735,000 709,000 30,570 - - - 12,474,570 3.66% 1,519 2012 11,425,000 634,000 - - - - 12,059,000 3.00% 1,339 2013 9,400,000 1,665,000 - - 1,700,000 - 12,765,000 2.78% 1,216 (1) The Town implemented the GASB 34 model of reporting fiscal year ending September 30, 2004. (2) Personal Income and Population found on Table 15 of the statistical section Business-Type ActivitiesGovernmental Activities Town Council Page 449 of 522 Meeting Date: Monday, April 7, 2014 Fiscal Year General Obligation Bonds Certificates of Obligation Percentage of Actual Taxable Value of Propertya Per Capitab 2004 5,750,000 - 1.05%803$ 2005 5,470,000 620,000 1.08%809$ 2006 5,180,000 590,000 1.02%749$ 2007 8,135,000 989,000 1.37%1,175$ 2008 7,755,000 922,000 1.19%1,152$ 2009 7,310,000 852,000 1.03%1,074$ 2010 12,400,000 782,000 1.57%1,607$ 2011 11,735,000 709,000 1.42%1,516$ 2012 11,425,000 634,000 1.28%1,339$ 2013 9,400,000 1,665,000 1.07%1,054$ a Property values are from table 5. b Populations are from table 12. Town Council Page 450 of 522 Meeting Date: Monday, April 7, 2014 Estimated Estimated Share of Debt Principal Percentage Overlapping Governmental Unit Outstanding Applicable Debt Debt repaid with property taxes: Denton County 596,845,000$ 1.36%8,117,092$ Northwest Independent School District 627,557,392 9.65%60,559,288 Tarrant County 336,635,000 0.05%168,318 Tarrant County College District 15,485,000 0.05%7,743 Tarrant County Hospital District 49,780,000 0.05%24,890 Trophy Club MUD #1 5,945,000 72.13%4,288,129 Subtotal, overlapping debt 1,632,247,392$ 73,165,460$ Town of Trophy Club, direct debt 11,065,000 100.00%11,065,000 Total Direct and Overlapping Debt Principal 1,643,312,392$ 84,230,460$ Source: Most recent Texas Municipal Reports ("TMR") published by the Municipal Advisory Council of Texas. 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 therfore responsible for repaying the debt, of each overlapping government. Town Council Page 451 of 522 Meeting Date: Monday, April 7, 2014 Year Estimated Populationa Total Householdsa Median Household Income Total Personal Income 2004 7,162 2,740 N/A N/A 2005 7,530 2,690 92,492 248,803,480 2006 7,703 2,824 92,492 261,197,408 2007 7,763 2,850 92,492 263,602,200 2008 7,531 2,289 92,492 211,714,188 2009 7,600 2,763 92,492 255,555,396 2010 8,204 2,930 92,492 271,001,560 2011 8,210 3,179 107,150 340,629,850 2012 9,005 3,395 118,595 402,630,025 2013 10,500 3,750 122,539 459,521,250 Sources:a Data provided by the 2010 US Census (1) The Town implemented the GASB 34 model of reporting fiscal year ending September 30, 2004. Town Council Page 452 of 522 Meeting Date: Monday, April 7, 2014 Employer Employees Percentage of Total City Employment Employer Employees Percentage of Total City Employment Northwest Independent School District 353 29.66%Trophy Club Country Club 100 13.50% Trophy Club Country Club 169 14.20%Tom Thumb 75 10.12% Baylor Medical Center at Trophy Club 130 10.92%Town of Trophy Club 73 9.85% Tom Thumb 97 8.15%Ivy Glen 31 4.18% Town of Trophy Club 86 7.23%Blockbuster 12 1.62% Cristina's Mexican Restaurant 47 3.94%Bank of America 7 0.94% Respiratory Sleep Solutions 42 3.53%Texas National Bank 6 0.81% Premier Academy - Trophy Club 40 3.36%Quizno's 4 0.54% Fellowship United Methodist Church 39 3.28%Beck Properties/Centurion 4 0.54% Church at Trophy Lake 30 2.52% Total 1,033 86.80%312 42.11% (1) The Town implemented the GASB 34 model of reporting fiscal year ending September 30, 2004. (2) Staff estimated total city employment of 1,190 for fiscal year 2013 (3) Staff estimated total city employment of 741 for fiscal year 2005 (Data for 2004 was not available) 2013 2005 Town Council Page 453 of 522 Meeting Date: Monday, April 7, 2014 Function 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 General Government and Adminstration 10.00 8.50 7.50 10.00 9.00 9.00 10.00 12.00 12.80 12.00 Public Safety 24.00 25.50 26.00 25.00 29.00 21.87 21.80 22.30 23.10 27.60 Streets - - - 5.00 6.00 4.90 4.90 4.90 5.00 Parks and Recreation 7.00 10.67 12.19 13.28 10.00 11.00 11.00 11.00 16.30 16.00 Community Development 3.00 1.00 4.00 6.00 4.00 2.50 2.50 3.00 4.50 6.00 Total 44.00 45.67 49.69 54.28 57.00 50.37 50.20 53.20 61.60 66.60 Source: Departmental records (1) The Town implemented the GASB 34 model of reporting fiscal year ending September 30, 2004. Fiscal Year Town Council Page 454 of 522 Meeting Date: Monday, April 7, 2014 Function 2004 2005 2006 2007 Public Safety Police Number of stations 1 1 1 1 Number of police personnel 14 14 15 15 Number of arrests 62 73 82 81 Number of traffic stops 1,541 2,083 2,379 2,346 Fire Number of stations 1 1 1 1 Number of fire personnel 14 14 14 14 Number of calls answered 408 561 633 608 Developmental Miles of streets a N/A N/A N/A 31 Cultural/Recreational Changes Parks 6 6 6 5 Park acreage 916 916 916 907 Source: Departmental records (1) The Town implemented the GASB 34 model of reporting fiscal year ending September 30, 2004. Town Council Page 455 of 522 Meeting Date: Monday, April 7, 2014 2008 2009 2010 2011 2012 2013 1 1 1 1 1 1 15 15 16 17 15 18 152 121 125 128 102 101 2,939 3,608 2,696 2,821 2,602 2,443 1 1 1 1 1 1 14 14 14 14 14 14 597 689 651 741 845 945 34 36 39 42 43 43 8 8 8 7 6 6 1,037 1,037 1,037 1,037 1,039 1,039 Town Council Page 456 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1075-T Name: Status:Type:Agenda Item Regular Session File created:In control:4/1/2014 Town Council On agenda:Final action:4/7/2014 Title:Receive the Final Report of the Blue Ribbon Panel and its findings relative to the current governmental structure of the Town of Trophy Club; discuss and take appropriate action regarding same. Attachments:Blue Ribbon Panel Final Report.pdf Action ByDate Action ResultVer. Receive the Final Report of the Blue Ribbon Panel and its findings relative to the current governmental structure of the Town of Trophy Club; discuss and take appropriate action regarding same. Town Council Page 457 of 522 Meeting Date: Monday, April 7, 2014 Blue Ribbon Panel Final Report Town Council Page 458 of 522 Meeting Date: Monday, April 7, 2014 Executive Summary September 3, 2013, Resolution 2013-16 was passed creating the Blue Ribbon Panel for the purpose of studying the current governmental structure within the Town of Trophy Club and providing recommendations to the Town Council. The Blue Ribbon Panel consisted of twelve (12) citizens who currently do not serve as an elected official for the Town of Trophy Club or Trophy Club Municipal Utility District No. 1. Blue Ribbon Panel Members James Como, Chair, served on Finance Subcommittee Nicole Fontayne, Vice Chair, served on Governance Subcommittee Sandra Millett, Panel Secretary Patrick Arata, served on Governance Subcommittee Ronald Bieker, served as Liaison to Trophy Club Municipal Utility District No. 1 Wesley Carlton, served on Finance Subcommittee Mitchell Christoffer, served on Governance Subcommittee Robert Duncan Ronald Eddins, served as Liaison to TC MUD1 & Governance Subcommittee Wanda Franklin, served on Finance Subcommittee Timothy Gamache, served on Governance Subcommittee Joe Henning, served on Governance Subcommittee Robert Hillman, served as Liaison to TC MUD1 Recommendations from the Governance Subcommittee 1. Consent to a possible Trophy Club Municipal Utility District No. 1 Annexation of the PID (short term) 2. Transfer the operational control of the Trophy Club Fire Department to the Town of Trophy Club 3. Continue to work toward a long term solution of consolidation with Trophy Club Municipal Utility District No. 1 to become a full service Town 4. Other various organizational recommendations outlined in the Governance Subcommittee Report Recommendations from the Finance Subcommittee 1. Addressing a merger with Trophy Club Municipal Utility District No. 1 only when necessary, i.e. only when Westlake has left Trophy Club Municipal Utility District No. 1 2. Remaining involved in the Westlake buyout process if it happens to help shape the best and prudent scenario for Trophy Club 3. Considering annexation of the PID by Trophy Club Municipal Utility District No. 1 The following pages are the detailed reports from the Governance and Finance Subcommittees. Town Council Page 459 of 522 Meeting Date: Monday, April 7, 2014 Blue Ribbon Governance Subcommittee Report to Town Council Introduction The Trophy Club Blue Ribbon Panel was empanelled by the Trophy Club Town Council to “investigate the optimal solution to the future Trophy Club Municipal Utility District No. 1 and Town government structure by: • Examining the current government structure in Trophy Club, • Researching best practices for municipal government and • Providing a recommendation to the Council regarding a local government consolidation. In order to expedite its work the Blue Ribbon Panel divided into two subcommittees Finance and Governance. The Finance Committee focused on the financial analysis of various scenarios, while the Governance Committee investigated the organization and governance questions of the government structure. This report encompasses the review and recommendations of the Governance Committee. Approach The Governance Committee outlined inputs for study to ascertain the options and recommendations to the Town Council. The elements included: • Existing document review of Town and Trophy Club Municipal Utility District No. 1 contractual documents and past reports • Observation of poor employee cooperation and coordination o Interviews and Comments – Our goal was to talk with parties who could describe and provide input on the impact of the current organizational and governance structure. In addition, to the formal interviews listed below the committee received input from Trophy Club Municipal Utility District No. 1 Board and Citizen Advisory Board members via email and comments at our meetings. Mayor Connie White addressed the full Blue Ribbon Panel; several Council members attended the Governance Committee meetings on a fairly routine basis. o Town Manager o MUD District Manager o Fire Chief o Contractor/Developer KEY ISSUES Leadership “Everything rises and falls on leadership” John Maxwell Water is the primary resource required to sustain life. As such, it has been the source of conflict throughout the ages. Wars have been fought for the right to control water. The current conflict over governance of the water utility in Trophy Club is the 21st century iteration of this age old battle. Town Council Page 460 of 522 Meeting Date: Monday, April 7, 2014 At the same time citizens expect that its governing bodies will work together for the benefit of all. The current conflict is very difficult and permeates every level of the two organizations. The organizations have different cultures and strategic visions and goals which are not easily reconciled. Therefore, our total local governance process does not function as efficiently or as effectively as it should. The conflict between the Town and Trophy Club Municipal Utility District No. 1 has been further exacerbated by the Town of Westlake’s desire to separate from Trophy Club Municipal Utility District No. 1. The three way conflict now has the attention of state legislative officials, who have convened meetings with the three jurisdictions. Legal Issues The only provision in the Local Government Code to affect the consolidation of Trophy Club Municipal Utility District No. 1 in the current configuration, i.e., Trophy Club Municipal Utility District No. 1 district boundaries crossing two separate municipal town limits; would be by means of a Strategic Partnership Agreement in which all three governmental agencies would have to agree to the terms of a proposed agreement in accordance with Section 791.026 of the Texas Government Code and Section 43.076 of the Texas Water Code. There has been no progress since the Town of Trophy Club introduced a proposed agreement in May 2013; and there appears to be no effort on any agencies part to consider this strategy. The committee recognizes that the political environment does not currently support the concept of consolidation; therefore, the potential for annexation of the PID by the Trophy Club Municipal Utility District No. 1 was explored. The Governance Subcommittee requested an opinion from Patricia Adams, Trophy Club Town Attorney regarding the following questions: • Is there any law that will prevent the annexation of the PID into the Trophy Club Municipal Utility District No. 1? • Under what circumstances can the PID be annexed into the Trophy Club Municipal Utility District No. 1? Mrs. Adams response is included below in its entirety: 49.301, Water Code – owners of all of the tracts may petition the MUD board requesting annexation. The petition requires landowners to assume any outstanding and future authorized MUD bond debt, and authorizes MUD to levy taxes on the tract. The MUD board makes findings of feasibility [and, subject to consent of City pursuant to 54.016(a) and (d)], MUD adds the land by adoption of an order. There is no MUD hearing or election required for annexation by the MUD under this section. However, the petition could request the annexation to be subject to conditions, including the future issuance of bonds to serve the annexed area. OR Town Council Page 461 of 522 Meeting Date: Monday, April 7, 2014 49.302, Water Code - owners of less than all of the land proposed to be annexed may petition the MUD board for annexation. This would require the signature of owners of a majority in value of the tract as confirmed by the tax rolls to be annexed or at least 50 owners if there are more than 50 owners of lots and parcels comprising the tract. Under this section, a public hearing is required on the petition and proposed annexation after publication of notice. If upon conclusion of the hearing, the annexation is found by the MUD board to be feasible [and, subject to consent of the Town pursuant to 54.016(a) and (d)], the MUD may adopt an order adding the land to its boundaries. The MUD board is then required to call an election within the District on the question of whether the annexed area should assume its pro rata share of the outstanding MUD tax supported debt and taxes. The MUD may also add another proposition as to whether the tract should assume it’s pro rata part of any future tax bonds and taxes previously authorized but not yet issued. If the election is successful, then the tract shall bear its pro rata share of the outstanding debt and taxes, and if the election included the additional proposition, future MUD debt and taxes. In the order calling the election, the MUD board may provide that the annexation is not final unless the election results favorably to the assumption of the MUD’s outstanding, and possibly future, bonds and taxes. AND 54.016, Water Code – Pursuant to subsection (a), no land within the corporate limits of a city shall be included within a MUD unless the city grants its consent in accordance with section 42.042, Local Government Code, and section 54.016 by resolution or ordinance. A petition to the Town is required; and it must be executed by the owners of a majority in value of the tract, or if there are more than 50 owners, at least 50 owners of lots/parcels within the tract. The contents of the petition are set out in this subsection. Pursuant to subsection (d), this same requirement and process “shall apply whether the land is proposed to be included in the district at the time of creation of a district or to be included by annexation to a district.” However, the remedies for failure or refusal of a city to grant consent provided in subparagraphs (b) and (c), do not apply where the land to be added is within the city’s corporate limits. Subparagraph provides, in part, as follows: “Under no circumstances shall land within the corporate limits of a city be included in a district without the written consent, by ordinance or resolution, of the city.” The election would be held “in the district, as enlarged by reason of the annexation of the area”. So, all voters residing within the area proposed to be annexed by the MUD are permitted to vote, as well as the voters in the district prior to the proposed annexation. A person who did not sign the petition, and who does not want to be annexed must appear at the hearing to protest the Town Council Page 462 of 522 Meeting Date: Monday, April 7, 2014 annexation. The Board has discretion not to include all of the land described in the petition if at the hearing a deletion is found “necessary or desirable” by the board. Sections 49.301, 49.302, and 54.016 do not provide authority for the proposition that an addition of land by a district under those sections effectuate a transfer of ownership of any municipal water or sewer facilities serving the added land. Additionally, a transfer of ownership of infrastructure is not legally allowed when there is outstanding bond debt for that infrastructure. Governance (PID) When the PID (Public Improvement District) was considered in 2007, an agreement with the Town, the Developer, and the Trophy Club Municipal Utility District No. 1 was necessary to secure Water and Wastewater service for PID customers. This was necessary because the designated PID area was not within the Trophy Club Municipal Utility District No. 1 approved boundary. The Town Council elected to create a PID, and seek water/wastewater services rather than expanding the Trophy Club Municipal Utility District No. 1 boundary to include what is now the PID. An agreement between the Town and the Trophy Club Municipal Utility District No. 1 was accomplished and continues today. The original agreement has worked well, but change is inevitable. Since the original agreement is now approaching completion (2018), an opportunity exists to review, revise and extend the PID agreement. With a NEW approach, there appears to be beneficial changes that can benefit the PID residents and the Trophy Club Municipal Utility District No. 1, if a new Agreement can be accomplished. The original agreement stipulated that all PID residents would pay the same water and wastewater rates as the rest of Trophy Club residents. It also agreed that the PID residents would pay the same amount as other town residents for Fire/Emergency Services. However, this fee is billed as an annual Assessment to each PID resident annually, not a tax. A tax for water and wastewater service was not appropriate due to the PID not being a part of the Trophy Club Municipal Utility District No. 1. It is important to note that taxes are deductible on federal tax returns, while assessments are not. Originally, to accomplish the request for services, the Trophy Club Municipal Utility District No. 1 required payment by the PID in the total amount of $4 million for access to water and wastewater services from the Trophy Club Municipal Utility District No. 1. The $4 million dollar Access Fee was calculated using the PID’s proportionate amount of the associated debt of the Trophy Club Municipal Utility District No. 1. This was later reduced to $3.26 million due to payments made by the developer ($540K) on behalf of the PID and a $200K credit to the Trophy Club Municipal Utility District No. 1 for participating in the increased capacity of the proposed elevated water tower that now exists near Byron Nelson High School. The remaining $3.26 million was to be paid by each property owner in the PID by way of a one-time $2,300 access fee. During the development of the PID, 10 lots were repurposed to accommodate drainage and open space requirements reducing the total number of PID lots to 1,407. The resulting Town Council Page 463 of 522 Meeting Date: Monday, April 7, 2014 amount due the MUD then became $3,236,100 (1,407 X $2,300). To date, 177 lots remain to be sold/built (12.6%). Economic Development Trophy Club has experienced incredible growth over the past few years. This growth has put a lot of pressure on both the Town and Trophy Club Municipal Utility District No. 1 as they attempt to keep up with the design and construction demands. Streamlined processes better serve the community, improve project success and ensure time and cost efficiencies. When the town receives a development project plans are submitted for the Town and Trophy Club Municipal Utility District No. 1 to review and approve. Part of this proposal includes establishing a timeline for project completion. It is the responsibility of the town to ensure that the critical path milestones are met and penalties and delays are not incurred. The project process includes specification and design submissions. One of the local developers who has been awarded Trophy Club contracts stated whereas a normal city project would be estimated at 45 days to completion, they plan a 4-6 month estimate for Trophy Club. It appears that this issue can be improved with the appropriate authority’s and flexibility given the two managers of each organization for planning and change order changes without having to take decisions back to the respective elected bodies. Project management requires considerable collaboration and cooperation between levels of review and ownership. If the review process and project execution is not properly managed and delays ensue, the project gets delayed and cost penalties are incurred. Project changes and delays can be very costly in a project. When contractor or developer has an issue with a project, they need a single contact that can give them a prompt response that will not cause a delay in the project. During design reviews, it is essential that errors and/or changes are caught and/or made at the earliest possible step in the process. The current arrangement creates significant delay as the multiple entities structure of Town and Trophy Club Municipal Utility District No. 1 require multiple meetings and approvals in order to provide the A/E with a decisive answer. The committee supports the recent addition of a single engineering firm who represents both Town and Trophy Club Municipal Utility District No. 1 and draws promptly from appropriate authorities when collaboration and consensus is required. Changes are the biggest nemesis to the design and construction process. Often times a “correction” not discovered early, turn into a significant “change” further down line in the review process. Changes are both costly and time consuming. Major changes can completely derail a project or create budget over runs that can’t be made up without additional budget approvals, also causing delays. When there is not a sole owner of a project, the risk is much higher that these impacts will occur. Communication is imperative between both organizations for any future successful capital improvement project in Trophy Club. At the same time, the economic development process is impacted by the necessity for the Town to address issues outside of its control, but necessary to insure success. These issues Town Council Page 464 of 522 Meeting Date: Monday, April 7, 2014 include: a very vibrant political climate in Trophy Club and wide variations in the quality of developer submissions. Organization The Governance Subcommittee finds the dual reporting relationship of the Fire Chief, reporting to the Town and Manager and District Manager ineffective. There are two administrative chains of command. The Fire fighters are in the Trophy Club Municipal Utility District No. 1 organization and the EMS staff is in the Town. In addition, Fire Marshall duties that are currently the responsibility of the Fire Chief, are appointed by and directed by the Town Manager has posed an operational conflict when reviewing development plans as the Fire Marshall, but answering to the Trophy Club Municipal Utility District No. 1 for fire operations. This also requires the Fire Chief to prepare and submit two budget submissions in addition to other duplicative administrative tasks. He indicates that approximately 90% of his time is consumed in administrative tasks. The Town is ultimately responsible for public safety. The dual reporting relationship only works due to Fire Chief Danny Thomas’ extensive skill and experience. Other redundancies and efficiencies exist due to the current Trophy Club Municipal Utility District No. 1/Town structure, which are acknowledged by both organizations. These include Human Resources, Finance, Tax Assessment and others. Trophy Club Municipal Utility District No. 1 Board members assert that this is due to unsatisfactory performance on the part of the Town. RECOMMENDATIONS The following recommendations are respectfully submitted for Town Council’s consideration: 1. Consent to a possible Trophy Club Municipal Utility District No. 1 Annexation of the PID (Short Term). 2. Transfer the operational control of the Trophy Club Fire Department to the Town. 3. Continue to work toward a long term solution of consolidation with Trophy Club Municipal Utility District No. 1 to become a full service Town. 4. Other various organizational recommendations outlined in this report. Leadership The Governance Committee believes it is essential for the leaders of the Town of Trophy Club and the Municipal Utility District to dramatically improve the communication, culture and issues related to the current conflict. • The Town of Trophy Club Council and The Trophy Club Municipal Utility District No. 1 Board should set a tone of cooperation and collaboration by: o Focusing on what is best for the citizens as a whole, o Establishing common goals and performance metrics for the Town and the Trophy Club Municipal Utility District No. 1 relating to collaboration, o Keeping a keen focus on opportunities to unify the town rather than create divisiveness, Town Council Page 465 of 522 Meeting Date: Monday, April 7, 2014 o Develop a process to determine when to use alternative dispute resolution services, such as a mediator or umpire when an impasse occurs, o Actively engaging in alternative dispute resolution services when the process is activated. Governance and Organization An important organizational change of note in this recommendation is that the Fire Department should come under a single administrative chain of command, the Town. Create a full service town with the utilities provided by one provider, the Town of Trophy Club. All related changes should be in effect, where possible, by or before the start of the fiscal year beginning October 1, 2014. Upon completion of these recommended changes it is intended that all Trophy Club Residents will be treated equally regarding Water, Wastewater, and Fire/Emergency Services rate provided by the Trophy Club Municipal Utility District No. 1. Economic Development It is the opinion of this committee that one of two things must take place for effective economic development as it relates to project management; 1) establish a single point of contact that has the knowledge and authority to give the appropriate answers to project questions, or 2) establish an effective management structure that allows for quick decision making at the lowest possible level. When there is dual ownership of a project and one or the other has to go to a higher level; i.e. Trophy Club Municipal Utility District No. 1 Board or Town Council, for approval, the A/E or construction process/s are delayed and incurs major cost impacts. The Trophy Club Municipal Utility District No. 1 and the Town of Trophy Club must come together to make decisions that impact development. Single ownership of projects is recommended and players of each discipline involved must recognize and respond to the need for on-time readiness for design review and appropriate approvals. Architects, engineers, construction companies, and residents should be able to trust Town and Trophy Club Municipal Utility District No. 1 authorities to be prompt and effective in their decision making so that financial hardships are not incurred. To do that, single ownership and management is recommended to ensure that a streamlined process is implemented and maintained. The Blue Ribbon Governance Subcommittee was honored to be given the task of exploring and recommending to Town Council the governance structure of a future Trophy Club local government. Our current situation is admittedly very complicated and we compliment both organizations for making our town as efficient and productive that it is despite the organizational shortcomings. It is our hope and desire that both elected bodies (Town Council and Trophy Club Municipal Utility District No. 1) will consider our recommendations moving our community forward to an even greater, more efficient local government in the future. Town Council Page 466 of 522 Meeting Date: Monday, April 7, 2014 Blue Ribbon Finance Subcommittee Report to Town Council The Trophy Club Blue Ribbon Panel Finance subcommittee (Finance subcommittee) held a series of meetings with the Trophy Club Municipal Utility District No. 1 Community Advisory Committee (CAC), town staff, and citizens to discuss the potential financial ramifications of abolishing the MUD due to the exit of the Town of Westlake from Trophy Club Municipal Utility District No. 1. The finance subcommittee would like to thank the CAC for their work developing a long term model illustrating potential disadvantages of continuing operations without Westlake. The Finance subcommittee leveraged long term forecasting models developed by the CAC and cost saving scenarios based on the current possibility of salary and non salary expense, the prorated economic benefit from a cash payout derived from Westlake’s offer to Trophy Club Municipal Utility District No. 1, and in a more aggressive model suggesting a fiscally conservative expense model based on duplicative staffing. Scenario One • Assumes net Solana/Westlake benefits from CAC projections • Assumes $65,000 salary expense savings and associated affects of Cost of Living Allowance (COLA) and medical expense compounded annually at a rate of ten percent • Assumes $45,000 of non salary expense savings due to duplicative cost • Prorates cash on hand with three percent Treasury yield for Westlake buyout • Does not assume salary switching cost on debt (Defeased cost) • Does not assume severance expense Scenario One Yearly Estimate 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 Net Solana Revenue (Benefit to MUD 1)568,666.40$ 838,978.30$ 1,067,699.44$ 1,105,542.10$ 1,143,565.49$ 1,171,951.72$ 1,208,399.93$ 1,246,666.37$ 1,286,884.24$ 1,115,104.91$ 1,159,618.15$ 1,206,517.86$ 1,256,200.24$ Labor save and COLA (65,000.00)$ (71,500.00)$ (78,650.00)$ (86,515.00)$ (95,166.50)$ (104,683.15)$ (115,151.47)$ (126,666.61)$ (139,333.27)$ (153,266.60)$ (168,593.26)$ (185,452.59)$ (203,997.84)$ Total non salary save (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ Westlake Payout with growth (50,000.00)$ (51,500.00)$ (53,045.00)$ (54,636.35)$ (56,275.44)$ (57,963.70)$ (59,702.61)$ (61,493.69)$ (63,338.50)$ (65,238.66)$ (67,195.82)$ (69,211.69)$ (71,288.04)$ Net Lost Opportunity 374,057.80$ 282,695.38$ 259,612.06$ 379,547.20$ 438,689.03$ 433,289.67$ 435,934.89$ 442,557.75$ 442,603.00$ 445,006.81$ 446,339.06$ 446,434.20$ 334,718.80$ 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 1,308,851.21$ 1,364,669.54$ 1,423,867.75$ 1,486,673.06$ 1,509,789.93$ 1,579,099.31$ 1,652,767.17$ (224,397.63)$ (246,837.39)$ (271,521.13)$ (298,673.24)$ (328,540.57)$ (361,394.63)$ (397,534.09)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (73,426.69)$ (75,629.49)$ (77,898.37)$ (80,235.32)$ (82,642.38)$ (85,121.65)$ (87,675.30)$ 331,732.74$ 326,863.95$ 319,960.77$ 310,724.14$ 298,818.55$ 283,867.93$ 265,451.09$ Town Council Page 467 of 522 Meeting Date: Monday, April 7, 2014 Scenario Two • Assumes net Solana/Westlake benefits from CAC projection • Assumes fiscally conservative $250,000 salary expense savings and associated affects of Cost of Living Allowance (COLA) and medical expense compounded annually at a rate of ten percent • Assumes $45,000 of non salary expense savings due to duplicative cost • Prorates cash on hand with three percent Treasury yield for Westlake buyout • Does not assume salary switching cost on debt (Defeased cost) • Does not assume severance expense Sceanrio Two Yearly Estimate 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027 Net Solana Revenue (Benefit to MUD 1)568,666.40$ 838,978.30$ 1,067,699.44$ 1,105,542.10$ 1,143,565.49$ 1,171,951.72$ 1,208,399.93$ 1,246,666.37$ 1,286,884.24$ 1,115,104.91$ 1,159,618.15$ 1,206,517.86$ 1,256,200.24$ Labor save and COLA (250,000.00)$ (275,000.00)$ (302,500.00)$ (332,750.00)$ (366,025.00)$ (402,627.50)$ (442,890.25)$ (487,179.28)$ (535,897.20)$ (589,486.92)$ (648,435.62)$ (713,279.18)$ (784,607.09)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ Westlake Payout with growth (50,000.00)$ (51,500.00)$ (53,045.00)$ (54,636.35)$ (56,275.44)$ (57,963.70)$ (59,702.61)$ (61,493.69)$ (63,338.50)$ (65,238.66)$ (67,195.82)$ (69,211.69)$ (71,288.04)$ Net Lost Opportunity 274,057.80$ 172,695.38$ 138,612.06$ 246,447.20$ 292,279.03$ 272,238.67$ 258,778.79$ 247,686.04$ 228,244.12$ 209,212.04$ 186,964.82$ 161,122.53$ 20,875.96$ 2027-2028 2028-2029 2029-2030 2030-2031 2031-2032 2032-2033 2033-2034 1,308,851.21$ 1,364,669.54$ 1,423,867.75$ 1,486,673.06$ 1,509,789.93$ 1,579,099.31$ 1,652,767.17$ (863,067.80)$ (949,374.58)$ (1,044,312.04)$ (1,148,743.25)$ (1,263,617.57)$ (1,389,979.33)$ (1,528,977.26)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (73,426.69)$ (75,629.49)$ (77,898.37)$ (80,235.32)$ (82,642.38)$ (85,121.65)$ (87,675.30)$ (13,494.38)$ (52,885.88)$ (97,764.05)$ (148,773.16)$ (206,628.47)$ (272,123.80)$ (346,139.82)$ Town Council Page 468 of 522 Meeting Date: Monday, April 7, 2014 Observations and Recommendations Both models (Scenario One and Scenario Two) paint a challenging picture for Trophy Club when faced with absorbing the net lost revenue of Solana/Westlake. This fiscal challenge to Trophy Club could be further exacerbated if the abolishment of the Trophy Club Municipal Utility District No. 1 incurs significant expense for defeasing debt and/or existing personnel contracts include material severance expense. Conversely, these challenges could be reduced if the size of the Solana/Westlake buyout were materially increased and/or if other town revenues increased to buttress the shortfalls. The Finance subcommittee believes that even the loftiest annual expense reductions won’t buttress a negative financial impact to Trophy Club. For example, with the variables as is, Scenario One never turns positive fiscally for Trophy Club over the 20 year projection. Scenario Two doesn’t turn positive until 2027. Both models suggest that the buyout and exit strategy negotiated between Solana/Westlake and Trophy Club Municipal Utility District No. 1 would need to be materially increased to eliminate a financial burden to Trophy Club. These points lead the Finance subcommittee to assert that the most positive assessment of fiscal variables that the town can manage in absence of Westlake has a high degree of risk. It is this risk that drives the Finance Subcommittee’s conclusion that the town of Trophy Club should only push for consolidation after and if Westlake severs ties with Trophy Club Municipal Utility District No. 1. Moreover, Solana/Westlake’s buyout needs to fully compensate Trophy Club Municipal Utility District No. 1. The Finance subcommittee has not endeavored to forecast what the appropriate level of compensation is for a Westlake buyout. We feel this analysis while strategically important is outside of our remit and should be undertaken with full transparency by Trophy Club Municipal Utility District No. 1. Regarding the matter of PID annexation by Trophy Club Municipal Utility District No. 1; the Finance subcommittee endorses this option as long as PID residents aren’t penalized financially. Legacy debt charges shouldn’t be passed to PID residents. If Trophy Club Municipal Utility District No. 1 can ensure financial separation of legacy debt to the PID, a strong case can be made for this annexation minimally to allow these residents voter representation. RECOMMENDATIONS • Addressing a merger with the MUD only when necessary, i.e. only when Westlake has left Trophy Club Municipal Utility District No. 1. • Remaining involved in the Westlake buyout process if it happens to help shape the best and prudent scenario for Trophy Club. • Considering annexation of the PID by Trophy Club Municipal Utility District No. 1. Town Council Page 469 of 522 Meeting Date: Monday, April 7, 2014 In closing, the Blue Ribbon Panel thanks the Council for the opportunity to serve our town, the foresight to invite citizenry into this process, and consideration of our recommendations. The Blue Ribbon Panel has taken this task on with the best of intentions for the Trophy Club community and its citizens. We look forward to seeing our town continue to grow and prosper in the most efficient manner possible. Respectfully submitted, James Como, Chair Nicole Fontayne, Vice Chair Town Council Page 470 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1077-T Name: Status:Type:Agenda Item Regular Session File created:In control:4/1/2014 Town Council On agenda:Final action:4/7/2014 Title:Consider and take appropriate action to create a subcommittee of Council members to interview and make a recommendation to the Town Council for appointment of members to serve on the Town's Ethics Commission. Attachments:Staff Report -Subcommittee of Council to Appoint Ethics Commission .pdf Stephen Flynn - Ethics Commission Application.pdf Katherine Hunter - Ethics Commission Application.pdf Roddy Metroka - Ethics Commission Application.pdf Gregory Wilson - Ethics Commission Application.pdf Action ByDate Action ResultVer. Consider and take appropriate action to create a subcommittee of Council members to interview and make a recommendation to the Town Council for appointment of members to serve on the Town's Ethics Commission. Town Council Page 471 of 522 Meeting Date: Monday, April 7, 2014 To: Mayor and Town Council From: Patricia Adams, Town Attorney CC: Mike Slye, Town Manager Tammy Ard, Town Secretary Re: Subcommittee of Council Town Council Meeting, April 7, 2014 Agenda Item: Consider and take appropriate action to create a subcommittee of Council members to interview and make a recommendation to the Town Council for appointment of members to serve on the Town's Ethics Commission. Explanation: The Town Charter provides for the adoption of a Code of Ethics and Conduct and for the establishment of an Ethics Commission. The Council adopted the Town’s Code of Ethics and Conduct and created the Town’s Ethics Commission via the adoption of Article XVII, “Code of Ethics and Conduct”, as part of Chapter 1, “Administration” of the Code of Ordinances. Section 17.06 of Article 17 provides: ETHICS REVIEW COMMISSION A. Commission Established. An Ethics Review Commission (Commission) is hereby established to be composed of three (3) members and two (2) alternate members, all of whom shall reside in the Town and shall be appointed by majority vote of the Town Council. C. Term of Office. The Commission members shall be appointed to three (3) year staggered terms. Position 1 shall serve an implementation term which shall expire on September 30 of 2012. Position 2 shall serve an implementation term which shall expire on September 30 of 2013. Alternate members and Position 3 shall serve as alternates for an implementation term which shall expire on September 30 of 2014. After each such implementation term expires, the term of office for each position shall be three (3) years. No member shall serve for more than two (2) consecutive full terms. Implementation terms shall not be counted as full terms. Due to lapse of terms and resignations, the Town currently only has one regular member who continues to serve on the Commission. Per Resolution No. 2012-26, Ronald Eddins served a one year implementation term which ended in September, 2012 and was reappointed with a three year term that expires in September, 2015. Mr. Eddins may serve one additional full three year Town Council Page 472 of 522 Meeting Date: Monday, April 7, 2014 term after his current term expires in 2015; however, the Commission is in need of two additional regular members and two alternate members. Staff has received 2 applications, 1 of which is a current member of the EDC-4B Board of Directors (Gregory Wilson) interested in serving on the Commission. Those applications are included in the backup for this agenda item. Per Section 11.14 of the Charter, “No member of the Commission may hold elective or appointed office under the Town or any other government or hold any political party office.” When the initial appointments to the Commission were made in 2011, the Council formed a subcommittee to interview and make recommendations to the full Council. Since there is not currently a quorum of the Commission seated to conduct interviews of potential new members as specified in the Town’s Handbook for Elected and Appointed Officials, the staff recommends that the Council once again form a subcommittee to make recommendations. Attachments: • Ethics Commission Applicants o Stephen Flynn o Katherine Hunter o Roddy Metroka o Gregory Wilson Town Council Goals: Goal #1: Safe and secure community. Maintain low crime rate Increase citizen awareness and involvement in crime prevention Provide superior Emergency Services Improve data security Goal #2: Business-Friendly Economic Development Create effective working relationships with businesses and developers Retain / Develop existing businesses Promote new commercial opportunities Goal # 3: Strong Partnerships and Community Involvement Create a positive regional identity Foster a well informed community Forge collaborative relationships with other governmental and public entities Support citizen volunteer opportunities Promote recreational / active lifestyle opportunities for all ages Goal #4: Healthy, Picturesque, and Environmentally Sound Promote recreational / active lifestyle opportunities for all ages Maintain neat and tidy appearance Improve property maintenance standards and code enforcement Develop / Enhance environmental and sustainability standards and programs Town Council Page 473 of 522 Meeting Date: Monday, April 7, 2014 Goal #5: Financial and Operational Stewardship Develop, recognize, and retain quality staff Implement strong financial management standards Improve effectiveness and efficiency of operational processes Maintain / Improve infrastructure and assets Provide cost-effective services Deliver responsible customer service Recommendation: Staff recommendation is to have Council appoint a 3 member subcommittee (2 Council and Town Manager) to interview applicants and make a recommendation to Council to fill vacancies on the Ethics Commission. Town Council Page 474 of 522 Meeting Date: Monday, April 7, 2014 T o w n C o u n c i l P a g e 4 7 5 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 4 7 6 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 4 7 7 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 4 7 8 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 4 7 9 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 4 8 0 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 T o w n C o u n c i l P a g e 4 8 1 o f 5 2 2 M e e t i n g D a t e : M o n d a y , A p r i l 7 , 2 0 1 4 --- --- BOARD and COMMISSION APPLICATION Roddy C. Metroka 1 Pin Oak Ct. Trophy Club, TX 76262 Home: 817-491-5954 Cell: rcmetroka@sbcglobal.net SUMMARY OF OUALIFICATIONS I have thirty-eight years of experience as a systems specialty engineer responsible for reliabili , availability, maintainability and integrated logistics support for equipment developed by defense contractor and fielded by the US military. Spent 23 years with Gould, Texas Instrument and Raytheon providing design support for weapon systems such as Army FCS GSI, Army Javelin, Army Excalibur, Army ITAS/IBAS, Marine Corp ITSS and FEr and various Navy towed array sonars. Generated and reviewed numerous test and integration plans for military systems and equipment. Developed equipment test plans (Qualification Test Plans, Reliability Growth Plans, Reliability Demonstr4tion Plans, Highly Accelerated Life Test) and generated test reports for the same types of integration and test. Re$ponsible for monitoring and evaluating system field testing for Javelin and Excalibur. Participated in system/equipment testing activities at Army ranges and test facilities, such as Aberdeen Proving Ground, White Sands Missile Range, Picatinny Arsenal, Fort Hunter Liggett and Fort Huachuca. I spent 15 years as a US Army Civil Servant working for TECOM and ECOM supporting the tl velopment and test of new Army equipment. WORK HISTORY RETIRED in April 2011 Raytheon -NCS FCS GSI LCSA IPT Lead Apr 2003 -Apr 2011 • Work in an MSI environment within the Boeing LSI FCS Program with reporting to the Being ISR Program Management. Serves as the focal point between Boeing LSI & US Army and GSI Progra . Management and other GSI IPTs with respect to Design Support, safety, human factors, parts control, affordabilit)f). • Primary function is Lead for the Life Cycle Supportability/Affordability (LCSA) IPT with responsibility for leadership and guidance associated with Design Support for EOIlR, radar, and acoustic ground sensors. Provides overall technical oversight of 6 full-time engineers and 1 part-time engineer during the execution <ilf GSI LCSA IPT tasks. • Secondary function is to serve as Cost Account Manager (CAM) for LCSA IPT responsibi,ity for reporting weekly EVMS, generating BCR, generating/approving BOEs and generating/approving cost estim~tes. Ensures that LCSA IPT activities are properly identified in the program ETC. Current budget for LCSA IPT i$ approx. $18M for the SDD Phase.• Continue to maintain a very good rapport with the customer Boeing LSI, with US Army P~BCT RAM-T and ground sensor developer (GSD) personnel. Communicates Design Support status and achieveme to other GSI IPTs as well as GSI management. • Ensures that SOW/SDRL and CI Spec requirements for Design Support are flowed down GSDs and that the GSD designs are capable of meeting the requirements • Provides technical guidance and leadership to GSD IPTs that have similar functional resp nsibility as the GSI LCSA • IPT Attend or coordinate attendance at LSI-sponsored Technical Interchange Meetings, Worki g Group meetings and other functional technical data exchange meetings • Participates and presents at both GSI and GSD Program Monthly Reviews guidance for se or information presented at the annual FCS Summits, working Groups and Technical Interchange Meetings. • Ensures that LCSA IPT activities are accomplished on time (IMS) and on budget (lAW IEVMS).• Assisted with initial IPDS tailoring after the FCS GSI Contract Award. • Participates in and presents at major program reviews (SFR, SRR, PDR & CDR). Reviews and provides comment on the GSD presentation material for major program reviews. Generates and presents Design Support information/status at gate reviews/independent reviews. Develops and presents artifacts for major program r,views • Member of the GSI Risk Board responsible for identifying GSI risks and mitigation steps ~nd reviewing and approving GSD risks and mitigation associated with Design Support tasks. Currently, tracking and reporting the completion of mitigation steps for 2 GSI Risks and monitoring approx. 5 GSD Risks • To date, have participated and presented Design Support status and tasks at Gate 2 through Gate 6, as well as numerous Gate 4's associated with contract Change Requests. Also, participated and presented at Independent Reviews. Town Council Page 483 of 522 Meeting Date: Monday, April 7, 2014 . .. Raytheon -ES Combat Systems -Reliability Lead Apr 2001 Apr 2003 • Served as the Combat Systems (CS) lead reliability engineer and obsolete parts engineer. the CS programs include 2 developmental programs and 5 production/field programs. . • Provided overall reliability technical guidance to 8 reliability engineers and 2 technical support specialist. Provided guidance and assistance to the reliability engineers assigned to the CS factory PET conce ing methods to show the amount of cost avoidance obtained by implementation of corrective actions. Raytheon -RMS Javelin JV -Reliability Lead Jul1999 -Apr 2001 • Member of the transfer team that moved the Javelin Program from Lewisville to Tucson in 1999. Responsible for establishing factory FRACAS for the new production facility. • Provided factory FRACAS and other reliability failure analysis procedures to Fokker in th Netherlands as they became an FMS supplier for Javelin FTT. i • Served as a Section Manager for RMS RMSS Department with responsibility for providing performance evaluations and compensation inputs for approx 25 reliability engineers. . • Traveled to BGT in Germany to discuss and resolve FMECA issues for the joint Air Forcei& Navy (USntaly/Germany) HARM Precision Navigation Upgrade Program ! • As lead reliability for the RaytheonlLockheed Martin Joint Venture built a strong technical and trust relationship among the Program Managers and IPT Leads within the Army PMO, Lockheed Martin Missile Company and Raytheon . Texas Instruments -DSG Reliability May 1986 Jul1999 • Generated the Reliability and Qualification Test portions of winning proposal for XM-982 (Excalibur) Guided 155mm Projectile. Supported the early developmental test firings in support of design of Obturato and control fins for the projectile. Excalibur is currently fielded in Operation Iraq Freedom. • Supported the generation Reliability portion of the winning proposal for A WS-M (Javelin anti-tank weapon system. Provided reliability support from Proof of Principal through Full Scale Development and n into both Low Rate Initial Production and Full Rate Production. Supported Javelin reliability calculations and impro. ements during the successful completion of DT II, FSDE and IOT&E. Javelin successfully used by Army in Operation Iraq Freedom. Gould Reliability Section Mgr Feb 1985 -May 1986 I • Served as a Section Manager responsible for approx. 8 reliability engineers and 3 reliability technicians. Provided performance and compensation inputs to Engineering Dept Mgr. • Had responsibility for the operation and staffing of a Reliability & Materials Laboratory. • Provided narrative text and cost estimates for proposals submitted to Navy for towed area lonars. Dept of the Army General Engineer Ju11969-Feb 1985 • Army TECOM -Performed Reliability & Logistic Support independent analyses of non-ajor Army developmental programs, such as missile systems, electronic warfare systems, radios and maintenance su port vans. Responsible for planning, implementing, monitoring, evaluating government-conducted Developmental T sts • Army ECOM -Performed various reliability, maintainability and supportability tasks for rmy radio communication equipment in the field. EDUCATION Fairleigh-Dickinson University M.S. Operation Research Teaneck, NJ University of Pittsburgh B.S. Electrical Engineering Pittsburgh, PA Town Council Page 484 of 522 Meeting Date: Monday, April 7, 2014 - • I.t<J::CCEI,,71:7' . JUl -92013 Town of Trophy Club BOARD and COMMISSION APPLICATION BY: ~~~--~~~~~~~===-' Please check the appropriate Board, Comm!ssion, or Advisory Groups(s) o ..citizen Financial Advisory Board ~Ethics Commission 5a"Crime Control and Prevention District CJ Parks and Recreation Board ~/Economic Development Corporation 48 CJ Planning and Zoning Commission ... CJ Zoning Board of Adjustment .... Additional Application Form Required ­ We stronglyencoulaQ8 that a brief resume be submitted along with the BPoHcatlon. Name: G, ("f't\0r~ W\ \ ~ o~ E-mail: G ~~\:;I>I"C 11 a:> :;Jm4! l. ~O"' Address: HowLong?" l'3C'~r 9"" Phone (Home): (Work): Cell Phone: '\f:;).. -q &'3 -fp1 " Registered Voter? 1&1 Yes 0 No Certificate Number. _'\..o....;;;.O_Dt.:....~-=-~"--l__~______ Occupation, ExperienceJDegrees Held? C~""fl~",~c.e I m 'A r;<!...ONOyV\~'-S I G !'\ P"'tol~ c. 'Adm Why do you wanttoserve on this group? Trof"'~ c,\",'o~? Q ~rf''''+ f\D\.t..~ '*0 U\)t,. o.""el .I..\.UCI,..t++o bt\f ~+ <3V:D\6) 6-.pro'"fer. Do you have any potential conflicts of interest? -..1N~oll!-_________________ Do you have any related experience? .:c ~V"c"'~ Q"' I~ ;, e rl)'t cl p ~ T Y'" Of h ':j C.l ",,'0\,$ e cc.. '-\ V\ .,.. :r::. hlf,)t c..o J'V'.£\'f ~o\ 4: "'to f't:8 y.~ r~sA S oq,rg +rC\:,..:)t ~~I . , What do you feel you have to offer this group? I h Q. I) ~ !> ( r"~eX Q yO flo e "e rC\. \ c· +!t\ POQ \"" cl.. ~ ~~d", ~..., Tro h t.\,,'p\s ~ c..'-\'A Ol~~ Co",,\:a~ ... eot \.I,)~4'h rn Co\"" or",+( ~"'-,c\"'1c~c.<,-O"CV' ¥.t. i»'6T' ~e4('fo e'F-~c:rl t,.;,c-e •.,;) O~fOf'~ Y"n-tV""tl'er'!a ~I'\\ \ \ TEXAS OPEN RECORDS ACT "'Co '\ ",,~~1+~o N ""''.\\ b'C. bCfo)e"«'" c." Notice to Applicants: Once submitted, Information contained In and lneIuded with this application is con.ldered public record and ""~ must be released if a request Is made. According to GovelTVTlent Code Section 552.024 each employee oroffiaai of a govemmental r; 0 f h y body and each former employee and official of a governmental bOdy shall choose 10Vhether to ellow public ea:ess to the infonnation \" In the custody of the governmental body that relates to the person's home adcintss. home telephone nun)ber. and e-mail address. <::,J, IA b Each employee and official and each fonner employee and official shall state their choice to the Town Secretary's office. ta r £) \IJ ~ PI.... Indicate with an X your dec"lon.. ~ ALlOW PUBLIC ACCESS D'r,,£o-cr:S. Home Address Yes No y(' \ I Home Phone Number Yes No V Cell Phone Number Yes ~ No Yes v No ===== '~I~:~l?-WE:r= ~ft1'di,~~mftp;'~e ~n1}.$ D t? Received by: _____________ "Applicant Requirement for Boards or CommlAlons Applicants for boards or commissions must be ntglstereci voters and l8Sidents for six months. Board and commission members must be Trophy Club resldenla for at least six monlh8 as well as registered voters prior to !heir appointment. \I\IIth 1M exception of the Planning and Zoning CommiSSIon, Zoning Board of Adjustment and the Economic Development Boards, basad upon good cause shown, Council may waive the voter registration I'8qulrement for a person appointed to a Board, CommlS$lon. or Citizen AdVIsory Group that does not make recommendations for Council approval. The technical expertise of applicants may be a consideration In gaining appointment. Gregory K. Wilson CGEIT, CISM, CISSP, CTPE, PMP, ITIL Foundation Trophy Club, TX 76262 (972) 953-6767 OKWilson71@gmail.com SUMMARY OF QUALIFICATIONS: Respected IT Director who continually drives security improvements that safeguard company data and enable strategic alignment to the organization's strategic goals. Change Leader with cross-functional expertise in compliance and security, business process reengineering, finance and business development. An experienced leader with more than 13 years ofexperience in IT, financial analysis and business consulting skills who possesses strong collaborative and analytical expertise with the business acumen to positively contribute to the organization's bottom line. More than 11 years of management experience with budget responsibility. Polished oral communicator with who possesses an unrivaled work ethic and philosophy of continuous self-improvement. Extremely skilled in levemging existing resources to bring cost effective actionable security risk management strategies to complex enterprises with minimal budgetary impact with approximately 20 years of international experience. SUMMARY OF SKILLS: IT Governance Risk Compliance / Information Security Strategy Definition & Execution Contract Negotiation / Mediation / Procurement Thought Leadership Business ContinuitylDisaster Recovery Business Process Reengineering & Optimization Formal Security Training for SAP ECC 6.0, Risk Assessment & Manageme:Q.t Oracle E-Business IIi and IDE Enterprise 8.10 Staff Development & Leadership EMPLOYMENT: TPG Global, IT, FOit Worth, TX (May 11-Present) • Responsible globally for Information Security, IT Risk Management and IT SOX Compliance. • Developed and implemented the global IT Infrastructure Compliance Program wllrich has attained and maintained a 100% compliant rate. • Implemented our Document Management initiative at key locations that resulted in an 80% cost reduction. • Responsible for IT interaction with InternallExternal Counsel related to all LitigationlInvestigatory matters. • Negotiates all IT Infrastructure contracts and facilitates Legal's review of each contract prior to execution. • Responsible for managing the IT Incident Response, damage assessment, system restoration and remediation program. • Valued trusted member of the Enterprise Risk Committee. • Responsible for Global IT Security policy and procedure development for the world's largest Private Equity Firm. Lehigh Hanson, Director, IT Compliance & Security, Irving, TX (January 06 -Aprilll) • Decreased North America's software cost over 20% by spearheading a Software License optimization group. • Reduced North America's IT compliance's cost over 70% without any significant deficiencies or material weaknesses. Town Council Page 486 of 522 Meeting Date: Monday, April 7, 2014 • Developed and implemented our Enterprise Content Management initiative that reduced our Iron Mountain yearly cost by 50%, with a breakeven point ofless than a year. • Developed and implemented the North American's IT Compliance Department which has attained and . maintained a 98% compliant rate. • Formed the IT Compliance Team which is responsible for working with the TreaslHY, HR, Legal, Risk Management, Finance and Tax to ensure that North America is compliant with aInocal, state and federal regulatory and industry requirements such as SOX, BilMog, Payment Car<l Industry (PCI DSS), EU Data Privacy Directive, Medicare Claims Reporting, Turnbull and industry best practices. • Responsible for managing the North American Computer Security Incident Response, damage assessment, system restoration and remediation program. • Represented North America in developing the global Change Management process. • Led North America's IT effort that developed the Global Business ContinuitylDisaster Recovery Plan. • Established the enterprise's IT Federal E-Discovery process for federal litigation cases. • Negotiates all IT contracts and fucilitates Legal's review of each contract prior to execution. • Valued trusted member of the Corporate Enterprise Risk Committee. • Responsible for logical security of all North American applications, information t~chnology risk assessments and gap analysis. • Responsible for Global IT Security policy and procedure development for a Fortune Global 500 leader. Acquisition Project Manager • Responsible for the completion of the overall development of the Program Managlement function which was responsible for the successfully management and implementation of all North! American acquisitions. • Served as the primary interface for the Executive Group and internal business leaders for over 10 acquisitions valued at over 400MM. • Conducted due diligence, develop and manage all North American acquisition prQject plans, establishes project governance and controls, monitors project status and overall performance and quality. • Worked with Senior Business leaders to ensure that each acquisition is completed without any interruption to business operations from due diligence to successful integration. . • Managed milestones and deliverables to achieve desired financial results while effectively managing quality and mitigating risks. Independent Contractor Sarbanes-Oxley IT Project Manager, Dallas, TX (July 04 -January 06) • Managed an international Sarbanes-Oxley project for one of the leading apparel company. • Managed an IT team with a budget of $1.1 million and increased the scope of tha1 project which resulted in an additional $300K in revenue. • Responsibilities included planning, budgeting, project management, status reporting and coordination of the IT and business process review team. • Previously performed internal information systems engagements for Sarbanes-Oxley and Risk Assessments with two Big Four fInns. • Previously delivered several successful Sarbanes-Oxley engagements across a multitude of industries and company sizes. Network Associates, Business Development Manager, Plano, TX, (October 02 -July 04) • Provided ad hoc reporting for senior management with provided business and pro~uct line performance analysis, root-cause analysis, operational efficiencies analysis versus other intern~l sales divisions and comparisons versus the company's key competitors to establish best practices in the industry. Town Council Page 487 of 522 Meeting Date: Monday, April 7, 2014 • Responsible for coordinating with the sales team, legal department, various department heads and revenue group to ensure proper revenue recognition guidelines are followed from initial customer contact through product delivery. • Assisted formulating customized pricing solutions for large institutional which optimized profitability, enhanced profit margins and led to double-digit growth in the Enterprise space. • Created an analytic report that allows daily monitoring and reporting ofthe Govetnment Health and Education division's 130M sales performance versus quota. I IOllex Telecommunications, Finance Manager, Dallas, TX, (December 0 I May 02) • Developed and automated a mechanism to calculate the company's profitability per product line which led to the development of the optimal product mix formulations which maximized! revenue. • Conducted a price compliance review ofIonex's contractual agreements with its t¢ey suppliers and identified over $250,000 in erroneous charges. • • Responsible for perfonning due diligence and business case reviews to determine Ithe suitability for potential merger/acquisition and investment activity. . JP Morgan Chase Inc, A VP, DaIIas, TX, (September 00 -October 0 I) I • Revived the department that provided accounting expertise and 1st and 2 nd level of IT support for over 300 professionals, six software applications, and numerous sub-applications for a ~ivision with approximately $6.trillion of assets under custody. i • Developed and implemented an automated report process that converted printed reports to electronic versions that saved approximately $300,000 in printing cost in FY200 I. I • Created the accounting and production support function, infrastructure, policy anq procedures and framework that will ensure scalability as the business requirements expand . Verizon Inc, Internal Auditor, Irving, TX, (June 99-September 00) ConAgra Inc, Internal Auditor, Omaha, NE, (July 98-June 99) Profit Star, Accounting and Computer Consultant, Omaha, NE, (Sep. 97-Jul. 98) The Computer Doctor, Senior Financial Analyst, BeIIevue, NE, (Mar. 95-Nov. 97) United States Air Force, Omaha, NE (August 89 -June 97) EDUCATION: Master of Arts in Managerial Economics, University ofOklahoma, 3.5 GPA, Ju'y 1998 Bachelors in Public Administration, University of Nebraska at Omaha, Aug 199~ (Cum Laude 3.7 GPA) .• BOARD ASSIGNMENTS/COMMITTEE MEMBERSHIPS: THEllA Professional Issues Committee (PIC) (201O-Present) Secure World-Dallas Steering Committee (20 10) Texas Regional Infrastructure Security Conference Advisory Board (TRISC) 2010 City of Frisco Housing Trust Fund Board (2004-2006) Youth Leadership Frisco, Co-Founder and Board Member (2003-2007) Bridge Builder Foundation (2002-2004) India Mission Committee (2002-Present) Trophy Club Economic Develop Corporation 4A (2011-2013) Chairman of Keller Mission Committee (20l2-Present) PUBLIC SPEAKINGNOLUNTEER ASSIGNMENTS: Spoke at the PCA Financial and Administrative Executives Committee Summer Meeting in Jun~ 2007 Participated in Leadership Frisco (2005) . Completed five Missionary trips to India & Singapore (2004-2013) Town Council Page 488 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-983-T Name: Status:Type:Agenda Item Regular Session File created:In control:3/6/2014 Town Council On agenda:Final action:4/7/2014 Title:Consider and take appropriate action to designate a site for the installation of the Dinosaur Playground. Attachments:staff report - Dinosaur Playground Location.pdf Dinosaur Playground Presentation.pdf Action ByDate Action ResultVer. Consider and take appropriate action to designate a site for the installation of the Dinosaur Playground. Town Council Page 489 of 522 Meeting Date: Monday, April 7, 2014 To: Mayor and Town Council From: Adam Adams, Director of Parks & Recreation CC: Mike Slye, Town Manager Tammy Ard, Town Secretary Re: Dinosaur Playground Location Town Council Meeting, April 7, 2014 Agenda Item: Consider and take appropriate action to designate a site for the installation of the Dinosaur Playground. Explanation: The original site for the playground was deemed unsuitable due to a possible future conflict with any loop road development, poor site access and visibility and an unimproved access road that would be subject to adverse weather conditions. The Parks & Recreation Board recommended Freedom Dog Park as an alternate location and staff moved ahead with design work for that location. There were residents who then later opposed that location and therefore staff is bringing forth three (3) different options for possible playground locations. Once the location is chosen a detailed site plan will be created and staff and the developer will begin the process of developing that site for playground installation as the developer has committed resources to this process in the equivalent amount of $40,000. Attachments: • Dinosaur Playground Presentation Town Council Goals: Goal #1: Safe and secure community. Maintain low crime rate Increase citizen awareness and involvement in crime prevention Provide superior Emergency Services Improve data security Goal #2: Business-Friendly Economic Development Create effective working relationships with businesses and developers Retain / Develop existing businesses Promote new commercial opportunities Town Council Page 490 of 522 Meeting Date: Monday, April 7, 2014 Goal # 3: Strong Partnerships and Community Involvement Create a positive regional identity Foster a well informed community Forge collaborative relationships with other governmental and public entities Support citizen volunteer opportunities Promote recreational / active lifestyle opportunities for all ages Goal #4: Healthy, Picturesque, and Environmentally Sound Promote recreational / active lifestyle opportunities for all ages Maintain neat and tidy appearance Improve property maintenance standards and code enforcement Develop / Enhance environmental and sustainability standards and programs Goal #5: Financial and Operational Stewardship Develop, recognize, and retain quality staff Implement strong financial management standards Improve effectiveness and efficiency of operational processes Maintain / Improve infrastructure and assets Provide cost-effective services Deliver responsible customer service Recommendation: Staff recognizes the many factors that make the location of this playground a difficult decision but based on the unanimous opinions of the TC families Board (the Board forwarded a request for input that included this presentation from their at large membership but at this time no members have contacted staff with any input nor concerns) the original recommendation of Park Board (other locations were not an option at that time), the desire to create a facility located near the Highland’s development and the actual design of the playground reinforces staff’s recommendation that the Dinosaur Playground be located at Alternate location “A”, within Freedom Park. Staff also recommends that the NEOS electronic playground be relocated within Independence East where it should receive a higher level of use. Staff believes the least desirable location of the Dinosaur Playground would be Independence East Due to the particulars of that park. Town Council Page 491 of 522 Meeting Date: Monday, April 7, 2014 Dino Playground Trophy Club, TX Town Council Page 492 of 522 Meeting Date: Monday, April 7, 2014 Original Site Town Council Page 493 of 522 Meeting Date: Monday, April 7, 2014 Alternative Site – Option A Freedom Dog Park Town Council Page 494 of 522 Meeting Date: Monday, April 7, 2014 Alternative Site – Option A Freedom Dog Park Town Council Page 495 of 522 Meeting Date: Monday, April 7, 2014 Freedom Dog Park Town Council Page 496 of 522 Meeting Date: Monday, April 7, 2014 Freedom Dog Park Town Council Page 497 of 522 Meeting Date: Monday, April 7, 2014 Option A “Cons” Concerns the location is too close to the parking lot Concerns the joint use of the parking lot could create negative interactions between dogs and children Some children could have a general fear of dogs Currently there are no bathrooms on-site Town Council Page 498 of 522 Meeting Date: Monday, April 7, 2014 Option A “Pros” Location has good connectivity to the Highlands The site was originally designed to have more than one facility and it included a dog park; locating it here would create a synergy between the facilities Staff contacted a number of parks where there were shared facilities between a dog park and playground and could not find one instance of a harmful encounter between a dog and child. Our park also has never recorded a child related incident. The Town already has a full set of plans for a bathroom on this site Porta -potties could be brought in for play ground use Town Council Page 499 of 522 Meeting Date: Monday, April 7, 2014 Alternative Site – Option B Harmony Park Town Council Page 500 of 522 Meeting Date: Monday, April 7, 2014 Harmony Park Town Council Page 501 of 522 Meeting Date: Monday, April 7, 2014 Harmony Park Town Council Page 502 of 522 Meeting Date: Monday, April 7, 2014 Option B “Cons” This site does not service the Highlands The playground color scheme looks out of place and the proximity of both playgrounds and shade structures will look strange and present some redundancies in like use. NEOS system must be relocated Town Council Page 503 of 522 Meeting Date: Monday, April 7, 2014 Option B “Pros” The existing adjacent playground structure will become obsolete and need to be replaced in the next 6-10 years There are existing bathrooms The NEOS will see more use if located at Indy East Town Council Page 504 of 522 Meeting Date: Monday, April 7, 2014 Alternative Site – Option C Independence East Town Council Page 505 of 522 Meeting Date: Monday, April 7, 2014 Town Council Page 506 of 522 Meeting Date: Monday, April 7, 2014 Town Council Page 507 of 522 Meeting Date: Monday, April 7, 2014 Option C “Cons” •The playground location restricted to a less than ideal location: –soccer utilizes the large open area for practice – other areas have drainage issues –the playground and shade structure would impede and present safety issues for the Fourth of July Celebration •Baseball, consisting of both non-residents and residents would more than likely dominate the facility on game weekends during Fall and Spring season play •Proximity to homes Town Council Page 508 of 522 Meeting Date: Monday, April 7, 2014 Option C “Pros” •The NEOS would see more activity here •This location has access by the Highlands •This location has bathrooms Town Council Page 509 of 522 Meeting Date: Monday, April 7, 2014 Relocated NEOS Independence East Town Council Page 510 of 522 Meeting Date: Monday, April 7, 2014 Dino Playground Trophy Club, TX Next Steps •Address comments following Council meeting •Incorporate comments into final design •Complete construction documents Town Council Page 511 of 522 Meeting Date: Monday, April 7, 2014 Additional Comments •Staff recently reached out to the TC Families organization as a focus group and invited them to respond to staff with their choices for the dinosaur playground. Currently it is about 10 to 1 in favor of the Freedom Park Location with Harmony coming in second. •Staff also contacted the following cities who had off-leash dog parks and playgrounds and shared parking facilities. There was not one recorded incident between dogs and children at these facilities. One city even stated that shared facilities with dog parks would be the model going forward –Euless, Texas –San Marcos, Texas –Austin , Texas –Jacksonville, Florida –Alexandria, Virginia Town Council Page 512 of 522 Meeting Date: Monday, April 7, 2014 Costs and Funding •The Park Board unanimously agreed that remaining Park Bond funds should be utilized in designing and creating a playground location for alternate sites. •There is approximately $70,000 of unallocated funds available in the Park Bond •The costs estimates on the following slide do not include the $40,000 in work and materials to be donated by the developer nor does it take into account staff performing a large portion of the work Town Council Page 513 of 522 Meeting Date: Monday, April 7, 2014 Cost Estimates Town Council Page 514 of 522 Meeting Date: Monday, April 7, 2014 Cost Estimates Town Council Page 515 of 522 Meeting Date: Monday, April 7, 2014 Cost Estimates Town Council Page 516 of 522 Meeting Date: Monday, April 7, 2014 Dino Playground Trophy Club, TX Town Council Page 517 of 522 Meeting Date: Monday, April 7, 2014 Dino Playground Trophy Club, TX Town Council Page 518 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1035-T Name: Status:Type:Agenda Item Regular Session File created:In control:3/20/2014 Town Council On agenda:Final action:4/7/2014 Title:Town Manager Slye's update regarding the following; discussion of same. * Animal Shelter Advisory Committee - March 25, 2014 * Alliance Development Forum - March 28, 2014 * Tom Thumb Fuel Station Ribbon Cutting Ceremony - April 8, 2014 * Congressional Medal of Honor Escort - Wednesday, April 9, 2014 * Council Meeting Calendar - April/May Attachments: Action ByDate Action ResultVer. Town Manager Slye's update regarding the following; discussion of same. * Animal Shelter Advisory Committee - March 25, 2014 * Alliance Development Forum - March 28, 2014 * Tom Thumb Fuel Station Ribbon Cutting Ceremony - April 8, 2014 * Congressional Medal of Honor Escort - Wednesday, April 9, 2014 * Council Meeting Calendar - April/May Town Council Page 519 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1036-T Name: Status:Type:Agenda Item Regular Session File created:In control:3/20/2014 Town Council On agenda:Final action:4/7/2014 Title:Mayor and Council Updates regarding training opportunities, educational sessions, and regional meetings; discussion of same. * Chamber Luncheon - April 1, 2014 * Emergency Preparedness Planning Council - April 3 * Metroport Meals on Wheels - April 4, 2014 Attachments: Action ByDate Action ResultVer. Mayor and Council Updates regarding training opportunities, educational sessions, and regional meetings; discussion of same. * Chamber Luncheon - April 1, 2014 * Emergency Preparedness Planning Council - April 3 * Metroport Meals on Wheels - April 4, 2014 Town Council Page 520 of 522 Meeting Date: Monday, April 7, 2014 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12014-1037-T Name: Status:Type:Agenda Item Regular Session File created:In control:3/20/2014 Town Council On agenda:Final action:4/7/2014 Title:Items for Future Agendas. Attachments:Town Council Future Agenda Items List updated 1-29-2014.pdf Action ByDate Action ResultVer. Items for Future Agendas. Town Council Page 521 of 522 Meeting Date: Monday, April 7, 2014 Town Council Future Agenda Items List (updated 1/29/2014) 1. Consider and take appropriate action regarding procurement policies and their alignment with State statutes. (Rose 2/1/10) 2. Consider and take appropriate action regarding noise regulations for Oil and Gas Well Drilling and Production (Rose 4/26/10) 3. Consider and take appropriate action regarding the creation of a “Going Green” initiative throughout the Town. (White 2/24/2011) 4. Consider and take appropriate action regarding Food Prep Carts for sporting events and special events and to review/update Park Policies (Cantrell 5/7/2012) 5. Review of #10 of Chapter 8 “Nuisances”, Article I “Noise Nuisances”, Section 1.01 “Nuisances Defined” (Schroeder 6/21/2012) 6. Consider and take appropriate action regarding the creation of a Youth Council within Trophy Club (White and Schroeder 8/20/2012) 7. Consider and take appropriate action regarding reviewing the Ethics Ordinance (White 1/21/2013) 8. Residential Property Renewal for tax incentives and grants for the recovery and renewal of existing residential properties (Mayer 4/22/13) 9. Ordinance update regarding home occupation and number criteria for single family residential. (Lamont 7/15) 10. Discussion regarding animal shelter long and short term facility. (11/18/2013) Town Council Page 522 of 522 Meeting Date: Monday, April 7, 2014