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Complete Agenda Packet - 03/24/2020Town Council Town of Trophy Club Meeting Agenda 1 Trophy Wood Drive Trophy Club, Texas 76262 Council Chambers7:00 PMTuesday, March 24, 2020 A quorum of the Town Council will be present at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas 76262 on Tuesday, March 24, 2020, at 7:00 p.m. The Mayor will preside over the meeting and will be present at Trophy Club Town Hall. One or more members of the Town Council may participate remotely using video conferencing pursuant to Chapter 551 of the Texas Government Code. Two way audio and video communication will be provided and members of the public may speak. CALL TO ORDER AND ANNOUNCE A QUORUM INVOCATION PLEDGES Pledge of allegiance to the American Flag. Pledge of allegiance to the Texas Flag. 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 four (4) 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. ANNOUNCEMENTS AND REPORTS 1.2020-117-T Presentation of a Proclamation recognizing Moment of Honor for Medal of Honor Recipients (Mayor Sanders). Medal of Honor 2020 PROCLAMATION.pdfAttachments: Town Council Page 1 of 282 Meeting Date: March 24, 2020 March 24, 2020Town Council Meeting Agenda 2.2020-088-T Receive Town Manager Norwood’s update and provide input regarding the following (Mayor Sanders and S. Norwood). Mayor’s Update-Message to Constituents on Town Procedures regarding Corona Virus (COVID-19) (Mayor Sanders). Town Manager's Update: May 2, 2020 Election Update Announcement of Jack "J" Taylor, New Fire Chief/Emergency Management Coordinator Cancelled Events: *Back to Nature Event/Arbor Day *Spring Family Campout *Eggstravaganza *TCWC Spring Community Garage Sale *TCEVA Charity Softball Game CONSENT AGENDA 3.2020-091-T Consider and take appropriate action regarding the Town Council Regular Session Minutes dated February 25, 2020 (S. Norwood). DRAFT-TC Regular Session Minutes February 25 2020.pdfAttachments: 4.2020-090-T Consider and take appropriate action regarding a Resolution for the Town Council authorizing amendments to financial institution documents naming authorized Town representatives on the Texas Local Government Investment Pools (TexPool) signature accounts; and providing an effective date (S. Norwood). 2020-090- Staff Report - TexPool 3.24.2020.pdf TexPool Amending Authroized Representatives.pdf RES 2020-03 - TexPool .pdf Attachments: 5.2020-103-T Consider and take appropriate action regarding a Resolution for Texas CLASS Investment Pool allowing the Town to invest its funds with Texas CLASS; and providing an effective date (S. Norwood). Texas-CLASS-Registration-Packet-3.24.20.pdf 2020-090-Staff Report - Texas Class Signature Changes 3.24.2020.pdf RES 2020-04 - Texas CLASS Investment Pool.pdf Attachments: 6.2020-114-T Consider and take appropriate action regarding a request to extend the existing Temporary Use Permit allowing a construction trailer at Medlin Middle School, generally located west of Parkview Drive and south of Marshall Creek Road (S. Norwood). Res No. 2020-05.pdf Exhibit A - Site Layout.pdf TC Report Medline - March 24, 2020.pdf Attachments: Town Council Page 2 of 282 Meeting Date: March 24, 2020 March 24, 2020Town Council Meeting Agenda 7.2020-116-T Consider and take appropriate action regarding the National Incident-Based Reporting System (NIBRS) Justice Assistance Grant Program for the Police Department (S. Norwood). Staff Report - Grant package NIBRS Compliant RMS -2020.pdf RES. 2020-06 -NIBRS Compliant RMS Program.pdf Attachments: 8.2020-102-T Consider and take appropriate action regarding the purchase of a new LIFEPAK 15 monitor/defibrillator from Stryker for the Fire Department, not to exceed the amount of $30,036.11 (S. Norwood). Staff Report LIFEPAKMarch 24, 2020.pdf Stryker Defbrillator.pdf Attachments: 9.2020-118-T Consider and take appropriate action regarding the new rate order change to the sewer rates only to reflect the same rate adopted by Trophy Club Municipal Utility District No. 1 (S. Norwood). Staff Report - MUD 2020 PID Rate Order Change.pdf Rate Update April 1, 2020-rate changes.pdf 2020-0316A MUD Rate Order.pdf ORD 2020-05 PID Wastewater Fees.pdf Attachments: REGULAR SESSION 10.2020-092-T Presentation of the NISD Bond Package (S. Norwood). 11.2020-094-T Consider and take appropriate action regarding the acceptance of the Audit for the Town of Trophy Club Fiscal Year 2019 (S. Norwood). Audit Power Point Presentation - Trophy Club FY19.pdf FINAL - Town of Trophy Club 2019 CAFR.pdf Attachments: 12.2020-119-T General/Special Election Direction to Town Manager/Town Secretary to proceed with May 2, 2020 Election or postpone until November 3, 2020 (S. Norwood) Gov. Proclamation Election.pdfAttachments: 13.2020-115-T Declaration of Local Emergency for the Town of Trophy Club to follow Denton County's Plan related to COVID-19 (Mayor Sanders). Local Disaster 2020-02 Proclamation.pdfAttachments: 14.2020-095-T Discussion of items for Future Agendas to include agenda items for consideration on the April 14, 2020 Council Agenda and review Town Council Future Agenda items list (S. Norwood). Town Council Future Agenda Items List March 24, 2020.pdfAttachments: EXECUTIVE SESSION Town Council Page 3 of 282 Meeting Date: March 24, 2020 March 24, 2020Town Council Meeting Agenda 15.2020-097-T Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551 (Texas Open Meetings Act), the Council will convene into executive session to discuss the following: a. Section 551.082 Deliberation regarding Economic Development Negotiations under Subsection (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations and Subsection (2) to deliberate the offer of a financial or other incentive to a business prospect that the Town seeks to have locate within the territory of the Town: North of State Highway 114, east of Trophy Club Drive and west of town limits regarding Town Center (Mayor Sanders). b. Section 551.074 Personel Matters to discuss or deliberate the appoinment of, employment, evaluation, reassignment dtuies, disciplilne or dismissla of a public officer or employee: Appointment to the Parks & Recreation Board (S. Norwood). RECONVENE INTO REGULAR SESSION 16.2020-098-T Consider and take appropriate action regarding the Executive Session (S. Norwood). ADJOURN * The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meetings Act, LGC.551.071 Town Council Page 4 of 282 Meeting Date: March 24, 2020 March 24, 2020Town Council Meeting Agenda CERTIFICATION I certify that the above notice was posted on the bulletin board at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas, on March 20, 2020 by 5:00 p.m. in accordance with Chapter 551, Texas Government Code. Letty Vacek 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 682-237-2900, 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 the Council was removed by me from the bulletin board at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas, on the __________ day of ______________________, 2020. ________________________________, Title: ___________________________ Town Council Page 5 of 282 Meeting Date: March 24, 2020 1 Trophy Wood Drive Trophy Club, Texas 76262Town of Trophy Club Legislation Details (With Text) File #: Version:22020-117-T Name: Status:Type:Agenda Item Draft File created:In control:3/18/2020 Town Council On agenda:Final action:3/24/2020 Title:Presentation of a Proclamation recognizing Moment of Honor for Medal of Honor Recipients (Mayor Sanders). Attachments:Medal of Honor 2020 PROCLAMATION.pdf Action ByDate Action ResultVer. Presentation of a Proclamation recognizing Moment of Honor for Medal of Honor Recipients (Mayor Sanders). Town Council Page 6 of 282 Meeting Date: March 24, 2020 PROCLAMATION WHEREAS: The Medal of Honor is the highest award for valor in combat awarded across all branches of the United States Military, and WHEREAS: President Abraham Lincoln signed legislation from Congress creating the Medal of Honor in 1861 with the first medal being awarded in 1863, and WHEREAS: Approximately thirty-five hundred individuals, eighty-six of whom are laid to rest in the great State of Texas, have received this highest honor, and WHEREAS: Our country has celebrated National Medal of Honor Day on March 25 since it was first created by Congress in 1990 and signed into law by President George HW Bush, and WHEREAS: Texans are deeply patriotic and have a strong history of supporting the men and women of the Armed Forces, and WHEREAS: The National Medal of Honor Museum Foundation has selected Texas as the official home for the National Medal of Honor Museum; I, therefore, I Nick Sanders, Mayor of the Town of Trophy Club do hereby proclaim a “Moment of Honor” to be held at 3:25PM on Medal of Honor Day, March 25th as a time for all of our citizens to remember those past and honor those living recipients of the Medal of Honor. In witness whereof, I have here unto set my hand and caused the official seal of the Town of Trophy Club to be affixed this 24th day of March, 2020. ATTEST: __________________________________ Nick Sanders, Mayor Town of Trophy Club, Texas __________________________________ Leticia Vacek, Town Secretary Town of Trophy Club, Texas Town Council Page 7 of 282 Meeting Date: March 24, 2020 1 Trophy Wood Drive Trophy Club, Texas 76262Town of Trophy Club Legislation Details (With Text) File #: Version:22020-088-T Name: Status:Type:Agenda Item Draft File created:In control:2/25/2020 Town Council On agenda:Final action:3/24/2020 Title:Receive Town Manager Norwood’s update and provide input regarding the following (Mayor Sanders and S. Norwood). Mayor’s Update-Message to Constituents on Town Procedures regarding Corona Virus (COVID-19) (Mayor Sanders). Town Manager's Update: May 2, 2020 Election Update Announcement of Jack "J" Taylor, New Fire Chief/Emergency Management Coordinator Cancelled Events: *Back to Nature Event/Arbor Day *Spring Family Campout *Eggstravaganza *TCWC Spring Community Garage Sale *TCEVA Charity Softball Game Attachments: Action ByDate Action ResultVer. Receive Town Manager Norwood’s update and provide input regarding the following (Mayor Sanders and S. Norwood). Mayor’s Update-Message to Constituents on Town Procedures regarding Corona Virus (COVID-19) (Mayor Sanders). Town Manager's Update: May 2, 2020 Election Update Announcement of Jack "J" Taylor, New Fire Chief/Emergency Management Coordinator Cancelled Events: *Back to Nature Event/Arbor Day *Spring Family Campout *Eggstravaganza *TCWC Spring Community Garage Sale *TCEVA Charity Softball Game Town Council Page 8 of 282 Meeting Date: March 24, 2020 1 Trophy Wood Drive Trophy Club, Texas 76262Town of Trophy Club Legislation Details (With Text) File #: Version:12020-091-T Name: Status:Type:Agenda Item Regular Session File created:In control:2/25/2020 Town Council On agenda:Final action:3/24/2020 Title:Consider and take appropriate action regarding the Town Council Regular Session Minutes dated February 25, 2020 (S. Norwood). Attachments:DRAFT-TC Regular Session Minutes February 25 2020.pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding the Town Council Regular Session Minutes dated February 25, 2020 (S. Norwood). Town Council Page 9 of 282 Meeting Date: March 24, 2020 TOWN OF TROPHY CLUB TOWN COUNCIL REGULAR SESSION MINUTES TUESDAY, FEBRUARY 25, 2020 7:00 P.M. LOCATION: 1 TROPHY WOOD DRIVE, TROPHY CLUB, TEXAS COUNCIL CHAMBERS The Town Council of the Town of Trophy Club, Texas, met in a Regular Session on Tuesday, February 11, 2020. The meeting was held within the boundaries of the Town and was open to the public. TOWN COUNCIL MEMBERS PRESENT: C. Nick Sanders Mayor Philip Shoffner Mayor Pro Tem Sean Bone Council Member, Place 3 Karl Monger Council Member, Place 4 Michael Geraci Council Member, Place 5 STAFF PRESENT: Steve Norwood Town Manager Mike Erwin Finance Manager Wade Carroll Assistant Town Manager Tony Jaramillo Director of Parks & Recreation David Dodd Town Attorney Jill Lind Communications & Marketing Manager Sharon David Interim Town Secretary Mike Pastor information Services Manager Patrick Arata Police Chief Tommy Uzee Director of Community Development Gary Cochran Interim Fire Chief Steve Zieverink Information Services Specialist The Invocation was offered by Pastor Brooks with Lake Cities Church of Christ. The Pledges to the American Flag and Texas Flag were led by Council Member Geraci. 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 four (4) 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. Karen Williams, 2516 Trophy Club Drive, spoke on behalf of the Trophy Club pickleball group. She stated there were a number of players in attendance at tonight’s meeting, as pickleball is the fastest growing sport in America today, ranging in all ages. As of now, Trophy Club has ages ranging from 10 years to 78 years, is extremely easy to pick up and requires little equipment. The two courts at Harmony Park are in constant use, with over 45+ residents reserving the courts on Tuesday, Thursday and Saturday. She shared that due to no dedicated pickleball courts and the long wait time, Trophy Club has lost some players, with holiday peak times overflowing with participants. Byron Nelson High School and Medlin Middle School have formed teams but there are no actual regulation pickleball courts located in Trophy Club, only tennis courts that are lined for pickleball playing. Due to the growth, demand and extreme enthusiasm for the sport, Ms. Williams urged Council to take action and research a proposal for installing pickleball courts. She shared that preliminary discussions had taken place according to a Parks & Recreation Board Meeting. She encouraged everyone to visit the courts and share in the health, friendship and community spirit found in playing pickleball. Mayor Sanders thanked Ms. Williams for her presentation and shared that at the March 16, 2020 Parks & Recreation Board Meeting they will be discussing this topic and bringing forth recommendations to the Council. Town Council Page 10 of 282 Meeting Date: March 24, 2020 Town Council Minutes February 25, 2020 Page 2 of 6 Mayor Sanders welcomed Trophy Club Scout Troop #328 to the meeting. He stated the scouts were earning their badges for communications and citizenship in the community. He invited the Scouts to speak during Citizen Presentations. ANNOUNCEMENTS AND REPORTS 1. Receive Town Manager Norwood’s update and provide input regarding the following (S. Norwood): • March 3, 2020 Primary Election –completed the first week of early voting for Denton County voters at the MUD Building, with Tarrant County voting being held at Southlake Town Hall. Early voting will continue through February 28, 2020. • Marquee Update– the project is nearly finished, with the remaining portion being the stonework. The contractor has turned over the monitors to the Town. Staff is addressing the brightness issue that has been a concern. Town Manager Norwood stated that Leticia Vacek, the new Town Secretary, would start on March 9, 2020, and thanked Interim Town Secretary David for filling in during the process. He commended the Council on hiring new Town Secretary Vacek as well as choosing Interim Town Secretary David and applauded her efforts of handling the department’s responsibilities, including the General Election process. On behalf of the Council, Mayor Sanders thanked Interim Town Secretary David for filling in. Council Member Bone commented on the marquee sign on Trophy Lakes Drive that displayed a split in the middle, with a portion being dim and a portion being bright. Assistant Town Manager Carroll reported that staff is addressing the issue. 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. 2. Consider and take appropriate action regarding the Town Council Regular Session Minutes dated February 11, 2020 (S. Norwood). 3. Consider and take appropriate action regarding Resolution approving the submission of a Grant Application to participate in the Ramen Spectroscopy Drug Detection Program (TruNarc) for the Police Department; authorizing the Mayor or his designee to execute all necessary documents; and providing an effective date (S. Norwood). 4. Consider and take appropriate action to approve re-surfacing the competition and youth (kiddie) pools, not to exceed $171,957; authorizing the Mayor or his designee to execute all necessary documents; and providing an effective date (S. Norwood). Motion: Motion made by Council Member Bone, seconded by Council Member Monger, to approve Consent Agenda Items No. 2 through No. 4. Motion carried unanimously 4-0-0. REGULAR SESSION Town Council Page 11 of 282 Meeting Date: March 24, 2020 Town Council Minutes February 25, 2020 Page 3 of 6 5. Receive an update on the 2020 Census (Mayor Sanders). Mayor Sanders welcomed Chris Carathers from the Dallas Regional Census Center. Mr. Carathers gave a presentation on the 2020 Census, outlining the steps that were in place for a successful census survey. He had previously met with Assistant Town Manager Carroll as well as the Police Department. He reported that the Census Bureau was the largest short-term employer in the United States and shared the two reasons a Census was taken; 1). to help determine the representation for each State in Congress, which began in 1790, and 2). the distribution of federal funds that help communities provide school lunches, hospitals, water, and roads. He also shared that all Census information was confidential, never shared with any agency and every employee was required to take a life-long pledge to never share personal information. This year the Census Bureau will launch its first time online census taking, with a safe and secure site. All residents will receive a card in the next 3 weeks that has a specific code to log in for the online census, followed by five mailings to ensure the resident had completed these steps. He shared that last year extensive canvassing was done to match the houses with the correct addresses, which would help ensure an accurate census taking. Mr. Carathers stated that local Police Departments had been notified that the agents would be out in the field soon and stressed the importance of never giving out any personal information such as a driver’s license number, social security number, bank account, or a donation, as these questions would never be asked. He added that if this happens, immediately close the door and call the local Police Department. The Census Bureau was working diligently to hire hundreds of thousands of part-time workers, at $23/hour, with background checks on every person, but will soon end as 6-8 weeks of training was required before an agent is sent out and shared the link to apply www.2020census.gov/jobs. He stated that the Census Bureau was working with local communities, businesses, organizations and churches in the next month to highlight the importance of participating in the census. He stated that lower economic communities had the lowest response rate, especially the elderly, and college age as well as children under 5 years of age not being counted for, with efforts to break the negative cycle by utilizing the Response Outreach Area Mapper (ROAM) to help these communities understand the reasoning behind the census and help the communities receive the funding necessary for improvements. He also mentioned that partnerships with local businesses, organizations, schools, hospitals and churches were needed to help send out emails, post on social media, and host an awareness event. Mayor Sanders stated that Trophy Club had a solicitation ordinance that required registration and receive a badge and asked if the census takers would be wearing badges. Mr. Carathers reported each person would have a paper badge, satchel imprinted with the US Census logo, an iPad and would identify themselves as a Census employee. Mayor Sanders asked if they would have business cards and Mr. Carathers confirmed no. Mayor Sanders gave direction to Town Manager Norwood and Chief Arata to work with Mr. Carathers on helping address any solicitation issues that might arise from the Census taking. Mr. Carathers confirmed that the Town Staff would be notified before the agents are out in the field. Town Manager Norwood said staff would look at different ways to campaign/market to the citizens what would be taking place. Mayor Sanders thanked Mr. Carathers for his informative presentation. 6. Receive an update from Republic Services regarding trash services and current status of contract (S. Norwood). Town Manager Norwood introduced Geri Harwell with Republic Services to give an update. He stated that the Republic Contract was nearing the end of the existing contract and that specific steps were involved to move forward with a new contract. Ms. Harwell reported that the Trophy Club Contract with Republic would expire on April 30, 2020. She stated that Town Council Page 12 of 282 Meeting Date: March 24, 2020 Town Council Minutes February 25, 2020 Page 4 of 6 Republic provides free trash services for all Trophy Club facilities and events, that include the Spring/Fall clean-ups, Christmas tree recycling, document shredding, and that the franchise fee included in the current rate at twelve percent. Trash services include twice a week pick-up and once a week recycles. The current rate includes a limit of two bins but many homes go over this rule. The current residential rate is $12.37 for trash and $3.77 for recycle, which included the franchise fee. In 2010 Republic lowered the franchise fee to six percent and then did a fourth modification to include no annual price increase and trash rates remained the same. Ms. Harwell stated that in 2015 the Council voted to change the Franchise fee back to twelve percent and in 2018 Council voted to increase the $1.20 recycle rate based on current conditions. Ms. Harwell mentioned she brought this up as Trophy Club is about built out, and is not receiving the franchise fees, as well as Republic not recognizing that specific revenue and this would need to be factored into the contract. Ms. Harwell shared that the residents seem happy with their current level of service, with the twice a year community clean-up events being extremely popular. She stated that last year Republic processed 250 cars in 2 hours and recommended extending this particular event to three hours to accommodate the amount of cars that come through. Ms. Harwell stated there had been no additional increase in the past five years, as well as for commercial and industrial rates. Many cities were doing once a week trash service and wanted to mention if Trophy Club were interested. She also shared that with Lewisville’s landfill closing in the next eighteen months to twenty four months, Republic has facility locations in Lewisville, Arlington, and Ft. Worth. Ms. Harwell encouraged the renegotiation of the Republic contract with Trophy Club and encouraged the Town to not put the trash contract out to bid. She also shared the importance of putting a contract out to bid, but could share competitive rates to help save the Town this step and looked forward to the opportunity to share what Republic Services could offer to the Community. Mayor Pro Tem Shoffner praised Geri Harwell and Republic Services for their work, always addressing all concerns and did not feel any change was necessary at this time. He commented on Town Manager Norwood’s ability to negotiate a respectable contract with Republic Services and bring back to the Council. He added never having trash issues while serving on Council and felt the current service was a very good move when the contract was turned over to Republic. Mayor Sanders agreed with Mayor Pro Tem Shoffner’s comments and applauded Republic Services for delivering good service. He stated that trash services and rates were a hot topic when attending mayor meetings. He shared that one area that could be improved was having additional lines available when complaints were received. He asked Town Manager Norwood to look at the pros and cons of recycle roll-on containers versus bins. He also agreed on passing along the trash fee and was divided upon the number of homes and the number of events that Republic Services provided to the Town at no charge. Lastly, he agreed on extending the hours on the twice a year Community Clean-up. Council Member Geraci recommended that Town Manager Norwood begin negotiations for a reasonable agreement with Republic. Town Manager Norwood stated staff would start negotiations this week and follow-up on recycle issues and the additional hour for the Community Clean-up. Council Member Bone asked when the contract expires. Town Manager Norwood confirmed the contract expires April 30, 2020. Council Member Bone asked if the Town had looked at a month to month contract versus annually. He suggested a month to month contract be presented. Council Member Geraci agreed with reviewing a month to month contract. Town Manager Norwood stated that Republic offers a month to month contract and expects the contract to be finalized by May/June 2020. Ms. Harwell commented that her intention would never be to cancel a Town’s trash service due to a contract expiring and would begin working with Town Manager Norwood to draft a mutually agreeable contract to both parties. Mayor Sanders thanked Ms. Harwell for her informative presentation and sharing her facts regarding trash and recycling. Town Council Page 13 of 282 Meeting Date: March 24, 2020 Town Council Minutes February 25, 2020 Page 5 of 6 7. Discussion of items for Future Agendas to include agenda items for consideration on the February 25, 2020 Council agenda and items from the Town Council Future Agenda Items list (S. Norwood). 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. Mayor Sanders reported there were no future agenda items due for discussion at tonight’s meeting but this was the opportunity for Council to add items for future discussion. Mayor Pro Tem Shoffner recommended removing Greg Lamont’s name on Item #1 and replace with his name as he serves on this Committee with Mayor Sanders. He felt it was beneficial to get a second Council member to support an item before placement on the Future Agenda Items list. Mayor Sanders was in agreement with this recommendation. It was stated that Mayor Sanders can add an item but before staff begins researching items and bringing back to Council, sit would be beneficial for items placed to get a second Council member to support the discussion. It was recommended Greg Lamont’s name be removed and place Mayor Pro Tem Shoffner’s name as well as Mayor Sanders since they are on the committee. Mayor Pro Tem Shoffner noted that most items have two council members in support and recommended taking the bottom four off until the council member could receive additional support on these items. He noted that the Town’s Rules and Procedures require two council members to add an item on the agenda and it was a disservice to staff to begin researching and spend time if there was no support from the Council. Council Member Bone recommended removing Item #7 and adding his name to Item #3. Mayor Sanders recommended adding his name to Item #12. Mayor Pro Tem Shoffner recommended adding his name to item #13 as this was brought up at the February 1, 2020 Town Council Retreat. Mayor Sanders mentioned that since Ms. Fleury was no longer on Council, would another council member want to adopt her items. Mayor Sanders recommended removing Items #10 and #11 and that the purpose of the list was not to debate, but that these items were important enough to add to a future Council agenda and receive additional information from staff. Mayor Pro Tem Shoffner asked if it would be beneficial to present an item or wait until two council members were in agreement on an item as the Rules and Procedure did not address this. He felt that when staff started research on an item and did not have the support of the Council this was where it should clearly be written in the Rules and Procedures. He also recommended Item #8 not be brought up until after the May 2020 election. He asked that incentive vouchers for hotel occupancy be added to the list. Council Member Bone agreed with this recommendation. Mayor Sanders asked if there were any additional comments from Council. Council Member Geraci shared his concern over controversial items being discussed during an election and felt it would be best to complete an election and then address any sensitive issues. Mayor Sanders disagreed and expressed that with annual elections, the Council should continue to function and deal with items appropriately, regardless of sensitive topics. He shared examples of a Citizens’ Survey related to trash and a Loop Road issue. Council Member Geraci clarified his statement was meant to verify that framework needed to be established before staff began researching a project for a proper time to formulate future agenda items. Mayor Sanders commented on some of the items remaining on the list a long time which didn’t indicate staff is spending time on the item and that Town Manager Norwood would review the list to see if any items should be removed or stay on for future discussion. Council Member Monger stated the items did not have to be up for discussion right now but if it’s an idea that Council thinks should be for future discussion, it was a good way to keep items fresh in everyone’s mind and not be forgotten. Mayor Sanders recapped the recommendation for removal of Items #7, Town Council Page 14 of 282 Meeting Date: March 24, 2020 Town Council Minutes February 25, 2020 Page 6 of 6 #10 and #11, add Council Member Bone’s name to Item #3 and Mayor Sanders’ name to Item #12, as well as add the incentive hotel vouchers. Mayor Sanders reported NISD will present the proposed bond issue at the March 24, 2020 Town Council Meeting. He stated there were many online discussions happening, and recommended Council watch the presentation before the next Council Meeting. He stated the purpose for the bond was to help forecast the growth within the school district. Mayor Sanders also reported the Metroport Chamber will provide a presentation that would affect the Town’s budget process. At this time, the Chamber was building a permanent facility, which had debt involved and were proposing a portion of the building to have leasable office space to generate revenue to help pay for the new facility. Fundraising efforts will include stone pavers for organizations and residents to purchase, three to five year pledges, as well as adding twenty-five percent to annual membership dues. The presentation would help staff with budgeting for Chamber events. EXECUTIVE SESSION 8. Pursuant to the following designated section of the Texas Government Code, Annotated, and Chapter551 (Texas Open Meetings Act), the Council convened into executive session to discuss the following: A) Section 551.074 Personnel Matters to discuss or deliberate the appointment, employment, evaluation, reassignment, duties, discipline or dismissal of a public officer or employee: Town Secretary Employment Agreement (S. Norwood) B) Section 551.082 Deliberation regarding Economic Development Negotiations under Subsection (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations and Subsection 92) to deliberate the offer of a financial or other incentive to a business prospect that the Town seeks to have locate within the territory of the Town: North of State Highway 114, east of Trophy Club Drive and west of Town limits (Mayor Sanders) CONVENED INTO EXECUTIVE SESSION – START TIME – 8:00 p.m. RECONVENED INTO REGULAR SESSION – START TIME – 9:15 p.m. RECONVENED INTO REGULAR SESSION Motion: Council Member Bone made a motion, seconded by Council Member Geraci, to approve the Town Secretary Agreement with Ms. Leticia Vacek. Motion carried unanimously 4-0-0. ADJOURNMENT Mayor Sanders adjourned the meeting at 9:16 p.m. ___________________________________ ___________________________________ Sharon David, Interim Town Secretary C. Nick Sanders, Mayor Town of Trophy Club, Texas Town of Trophy Club, Texas Town Council Page 15 of 282 Meeting Date: March 24, 2020 1 Trophy Wood Drive Trophy Club, Texas 76262Town of Trophy Club Legislation Details (With Text) File #: Version:12020-090-T Name: Status:Type:Agenda Item Regular Session File created:In control:2/25/2020 Town Council On agenda:Final action:3/24/2020 Title:Consider and take appropriate action regarding a Resolution for the Town Council authorizing amendments to financial institution documents naming authorized Town representatives on the Texas Local Government Investment Pools (TexPool) signature accounts; and providing an effective date (S. Norwood). Attachments:2020-090- Staff Report - TexPool 3.24.2020.pdf TexPool Amending Authroized Representatives.pdf RES 2020-03 - TexPool .pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding a Resolution for the Town Council authorizing amendments to financial institution documents naming authorized Town representatives on the Texas Local Government Investment Pools (TexPool) signature accounts; and providing an effective date (S. Norwood). Town Council Page 16 of 282 Meeting Date: March 24, 2020 To: Mayor and Town Council From: Steve Norwood, Town Manager CC: Mike Erwin, Finance Manager Leticia Vacek, Town Secretary Re: TexPool Investment Pools Town Council Meeting, March 24, 2020 Agenda Item: Consider and take appropriate action regarding a Resolution of the Town Council authorizing amendments to financial institution documents naming authorized Town representatives on Texas Local Government Investment Pools (TexPool) signature accounts; and providing an effective date (S. Norwood). Background and Explanation: This resolution approves updates for authorized representatives, Leticia Vacek and Mike Erwin. TexPool is a public funds investment pool in Texas that adheres to the requirements of the Texas Public Funds Investment Act. For the past 15 years, TexPool has become the largest pool in the state of Texas and currently states an average annual asset balance of over $17 billion. TexPool maintains a rating of AAAm with Standard and Poor’s, which is the highest rating available. Legal Review: Not applicable Board/Commission/ or Committee Recommendation: Not applicable Staff Recommendation: Staff recommends Council approval Resolution 2020-03. Attachments: • Resolution 2020-03 Page 1 of 1 Town Council Page 17 of 282 Meeting Date: March 24, 2020 Town CouncilPage 18 of 282Meeting Date: March 24, 2020 Town CouncilPage 19 of 282Meeting Date: March 24, 2020 Town CouncilPage 20 of 282Meeting Date: March 24, 2020 Town CouncilPage 21 of 282Meeting Date: March 24, 2020 Town CouncilPage 22 of 282Meeting Date: March 24, 2020 Town CouncilPage 23 of 282Meeting Date: March 24, 2020 Town CouncilPage 24 of 282Meeting Date: March 24, 2020 Town CouncilPage 25 of 282Meeting Date: March 24, 2020 Town CouncilPage 26 of 282Meeting Date: March 24, 2020 TOWN OF TROPHY CLUB, TEXAS RESOLUTION NO. 2020-03 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, APPROVING AND AUTHORIZING AMENDMENTS TO FINANCIAL INSTITUTION DOCUMENTS NAMING AUTHORIZED TOWN REPRESENTATIVES ON TEXPOOL SIGNATURE ACCOUNTS; APPOINTING AUTHORIZED REPRESENTATIVES, AND DESIGNATING INVESTMENT OFFICERS. WHEREAS, the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, as amended (the “Interlocal Act”), permits any “local government” to contract with one or more other “local governments” to perform “governmental functions and services,” including investment of public funds (as such phrases are defined in the Interlocal Act); and WHEREAS, the Interlocal Act authorizes the contracting parties to any interlocal agreement to contract with agencies of the State of Texas, within the meaning of Chapter 771 of the Government Code; and WHEREAS, the Public Funds Investment Act, Chapter 2256 of the Texas Government Code, as amended (the “PFIA”), authorizes the entities described in Subsection (a) of the PFIA to invest their funds in an eligible public funds investment pool; and WHEREAS, it is in the best interests of this governmental unit (“Applicant”) to invest its funds jointly in the Texas Local Government Investment Pools (TexPool) in order better to preserve and safeguard the principal and liquidity of such funds and to earn an acceptable yield; and WHEREAS, Applicant is authorized to invest its public funds and funds under its control in TexPool and to enter into the participation agreement authorized herein; and WHEREAS, the Government Entity is a Government Entity as defined in the Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: Section 1. The form of application for participation in TexPool attached to this resolution is approved. The officers of Applicant specified in the application are authorized to execute and submit the application, to open accounts, to deposit and withdraw funds, to agree to the terms for use of the website for online transactions, to designate other authorized representatives, and to take all other action required or permitted by Applicant under the Agreement created by the application, all in the name and on behalf of Applicant. Town Council Page 27 of 282 Meeting Date: March 24, 2020 RES 2020-090 Page 2 of 3 Section 2. This resolution will continue in full force and effect until amended or revoked by Applicant and written notice of the amendment or revocation is delivered to the TexPool Board. Section 3. Terms used in this resolution have the meanings given to them by the application. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, on this 24th day of March 2020. _________________________________ C. Nick Sanders, Mayor Town of Trophy Club, Texas ATTEST: APPROVED AS TO FORM: Leticia Vacek, Town Secretary J. David Dodd III, Town Attorney Town of Trophy Club, Texas Town of Trophy Club, Texas Town Council Page 28 of 282 Meeting Date: March 24, 2020 RES 2020-090 Page 3 of 3 EXHIBIT A TexPool Resolution Amending Authorized Representatives Form Town Council Page 29 of 282 Meeting Date: March 24, 2020 1 Trophy Wood Drive Trophy Club, Texas 76262Town of Trophy Club Legislation Details (With Text) File #: Version:22020-103-T Name: Status:Type:Agenda Item Regular Session File created:In control:3/4/2020 Town Council On agenda:Final action:3/24/2020 Title:Consider and take appropriate action regarding a Resolution for Texas CLASS Investment Pool allowing the Town to invest its funds with Texas CLASS; and providing an effective date (S. Norwood). Attachments:Texas-CLASS-Registration-Packet-3.24.20.pdf 2020-090-Staff Report - Texas Class Signature Changes 3.24.2020.pdf RES 2020-04 - Texas CLASS Investment Pool.pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding a Resolution for Texas CLASS Investment Pool allowing the Town to invest its funds with Texas CLASS; and providing an effective date (S. Norwood). Town Council Page 30 of 282 Meeting Date: March 24, 2020 Registration Packet Texas Cooperative Liquid Assets Securities System Trust Town Council Page 31 of 282 Meeting Date: March 24, 2020 717 17th Street, Suite 1850 Denver, Colorado 80202 T (800) 707-6242 F (855) 848-9910 clientservices@texasclass.com www.texasclass.com Page 1 Welcome to Texas CLASS We believe you have made a sound financial decision in choosing the Texas Cooperative Liquid Assets Securities System Trust (Texas CLASS). We look forward to being your trusted provider and are excited to connect with you to make your investment process a positive, easy experience. Texas CLASS is a short-term, highly liquid investment program designed specifically for public-sector funds. It provides the opportunity to invest funds on a cooperative basis in short-term investments that are carefully selected to provide maximum safety and liquidity while generating a competitive yield. This packet contains all the materials necessary to set up your Texas CLASS account(s). If you have any questions about the registration process or about your Texas CLASS account(s), please do not hesitate to contact us. The Texas CLASS Client Service team can be reached any business day from 8:30 a.m. to 4:30 p.m. CT by phone at (800) 707-6242 or by email at clientservices@texasclass.com. Thank you for choosing Texas CLASS! Sincerely, The Texas CLASS Board of Trustees Town Council Page 32 of 282 Meeting Date: March 24, 2020 717 17th Street, Suite 1850 Denver, Colorado 80202 T (800) 707-6242 F (855) 848-9910 clientservices@texasclass.com www.texasclass.com Page 2 Registration Procedures To join Texas CLASS, please complete the following: 1)Read the Trust Agreement (A copy can be found on www.texasclass.com). 2)Pass the resolution authorizing participation in Texas CLASS (page 3 and 4). 3)Adopt the Trust Agreement by signing Exhibit D (page 5). 4)Complete the Entity Registration (page 6). 5)Complete the Authorized Contacts Form (page 7/8). 6)Complete the Account to be Established Form; you may open as many accounts as you wish (page 9). 7)Keep the original forms for your records, and send the completed packet to the Texas CLASS Client Service team by fax (855) 848-9910 or by email clientservices@texasclass.com. Questions? Please contact us; we would love to hear from you! Texas CLASS Client Service Team T (800) 707-6242 clientservices@texasclass.com Town Council Page 33 of 282 Meeting Date: March 24, 2020 717 17th Street, Suite 1850 Denver, Colorado 80202 T (800) 707-6242 F (855) 848-9910 clientservices@texasclass.com www.texasclass.com Page 3 Resolution to Participate WHEREAS, the Public Funds Investment Act, Texas Government Code, Section 2256.001 et seq. (the Act) requires the governing body of each local government in this state to adopt investment policies in accordance with the terms of the Act; and WHEREAS, pursuant to the requirements of the Act, the Board of Trustees (the Governing Body) of the ____________________________ (the Local Government) has previously reviewed and adopted an investment policy (the Policy) that provides in part that the funds of the local government will be invested in investments permitted by the Act in order to: (i) invest only in investments legally permitted under Texas law; (ii) minimize risk by managing portfolio investments so as to preserve principal and maintain a stable net asset value; (iii) manage portfolio investments to ensure that cash will be available as required to finance operations; and (iv) maximize current income to the degree consistent with legality, safety, and liquidity; and WHEREAS, pursuant to the Policy and the Act, the Local Government has appointed ____________________________ (the Investment Officer) to act as the investment officer of the Local Government; and WHEREAS, the Act provides that funds under the control of a Local Government may be invest ed through investment pools meeting the standards of Section 2256.016 of the Act; and WHEREAS, the Local Government has received and reviewed the Information Statement, dated December 2016 (the Information Statement), of Texas Cooperative Liquid Assets Securities System Trust (the Program), an investment pool administered by Public Trust Advisors, LLC that sets forth the information required by Section 2256.016(b) of the Act; and WHEREAS, the Local Government has determined that the investments proposed to be acquired by the Program are of a type that are permitted by the Act and are consistent with the Policy; and WHEREAS, the Local Government has determined that an investment in the Program will assist the Local Government in achieving the goals set forth in the Policy and will tend to preclude imprudent investment activities arising out of investment transactions conducted between the Local Government and the Program; and WHEREAS, the Local Government understands that the Program operates through the Eighth Amended and Restated Trust Agreement dated as of April 8, 2019 (the Trust Agreement), that provides the terms on which the Program will operate and the rights of the Participants in the Program and sets forth the responsibilities of Public Trust Advisors, LLC as the administrator of the Program (the Administrator) and of Wells Fargo Bank as custodian (the Custodian); Town of Trophy Club Mike Erwin Town Council Page 34 of 282 Meeting Date: March 24, 2020 717 17th Street, Suite 1850 Denver, Colorado 80202 T (800) 707-6242 F (855) 848-9910 clientservices@texasclass.com www.texasclass.com Page 4 NOW THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE LOCAL GOVERNMENT: That the form, terms, and provisions of the Trust Agreement, a draft of which was presented and reviewed at this meeting, providing for the creation of the Program and for the rights of the Program Participants and the duties and responsibilities of the Administrator be an d the same are hereby approved and adopted; and that the Investment Officer be and he or she is hereby authorized and directed to execute and deliver to the Administrator and the Custodian in the name and on behalf of the Local Government a participation certificate evidencing the agreement of the Local Government to be bound by the Trust Agreement substantially in the form of the Trust Agreement reviewed and approved at this meeting, together with such changes therein as may be approved by the said officer, such approval to be conclusively evidenced by the execution thereof; and be it further Resolved that the investment program established by the Trust Agreement is hereby found and determined to be consistent with the Policy and to preclude imprudent inv estment activities arising out of investment transactions conducted between the Local Government and the Program; and be it further Resolved that the Governing Body hereby officially finds and determines that the facts and recitations contained in the preamble of this Resolution are true and correct; and be it further Resolved that the Governing Body hereby finds and declares that written notice of the date, hour, place, and subject of the meeting at which this Resolution was adopted was posted for the time required by law preceding this meeting and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter thereof were discussed, considered , and formally acted upon all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended, and the Act; and be it further Resolved that the officers of the Local Government, and each of them, shall be and each is expressly authorized, empowered, and directed from time-to-time to do and perform all acts and things and to execute, acknowledge, and deliver in the name and under the corporate seal and on behalf of the Local Government all certificates, instruments, and other papers, whether or not herein mentioned, as they may determine to be necessary or desirable in order to carry out the terms and provisions of this Resolution and of the Trust Agreement hereby authorized and approved, such determination to be conclusively evidenced by the performance of such acts and things and the execution of any such certificate, financing statement, instrument, or other paper; and be it further Resolved that this Resolution shall take effect and be in full force upon and after its passage. Authorized Signature Date Printed Name Authorized Signature Date Printed Name Mayor Nick Sanders Steve Norwood Town Council Page 35 of 282 Meeting Date: March 24, 2020 717 17th Street, Suite 1850 Denver, Colorado 80202 T (800) 707-6242 F (855) 848-9910 clientservices@texasclass.com www.texasclass.com Page 5 Exhibit D – Participation Certificate The undersigned ____________________________ (the Local Government) does hereby request that it be admitted as a Participant pursuant to Section 2.3 of the Eighth Amended and Restated Trust Agreement (the Agreement) dated as of April 8, 2019, by and between the Participants, Wells Fargo Bank as Custodian, and Public Trust Advisors, LLC. By executing this Participation Certificate, the undersigned agrees that, upon the execution hereof by the Program Administrator, it will become subject to the same obligations and shall have the same rights as if it had executed the Agreement. The undersigned hereby certifies that ____________________________ (the Investment Officer) is the duly designated Representative of the undersigned as required by the Agreement. The undersigned hereby certifies that its governing body has taken al l actions required by Section 2256.016 of the Public Funds Investment Act, Texas Government Code, for it to participate in the Trust created by the Agreement. Entity Name Signature Date Title Accepted by Administrator (to be completed by Texas CLASS): Signature Date Title Town of Trophy Club Mike Erwin Town of Trophy Club Steve Norwood, Town Manager Town Council Page 36 of 282 Meeting Date: March 24, 2020 717 17th Street, Suite 1850 Denver, Colorado 80202 T (800) 707-6242 F (855) 848-9910 clientservices@texasclass.com www.texasclass.com Page 6 Trust Registration Entity Information Entity Name (Participant) Entity Type: City/Town County School District Special District Other (Specify) Mailing Address City Zip County Tax ID Fiscal Year End Date (Month/Day) The _____________________________ (the Local Government) hereby wishes to invest in the following portfolio: Texas CLASS Texas CLASS Government Both Texas CLASS is hereby authorized to honor any telephoned, faxed, or electronic request believed to be authentic for withdrawal of funds. The withdrawal proceeds can be sent only to the bank(s) indicated below unless changed by written instructions. Each local government is responsible for notifying Texas CLASS of any changes to its account. Banking Information Bank Name Bank Routing Number (ABA) Account Title Account Number Bank Contact Contact’s Phone Number Wire ACH Both Additional Banking Information (Optional) Bank Name Bank Routing Number (ABA) Account Title Account Number Bank Contact Contact’s Phone Number Wire ACH Both Town of Trophy Club 1 Trophy Wood Dr Trophy Club 76262 Tarrant 1-75-2047474-7 9/30 Town of Trophy Club Wells Fargo 121000248 Designated 4126057041 Susan Dougherty 940-384-6355 Town Council Page 37 of 282 Meeting Date: March 24, 2020 717 17th Street, Suite 1850 Denver, Colorado 80202 T (800) 707-6242 F (855) 848-9910 clientservices@texasclass.com www.texasclass.com Page 7 Authorized Contacts Representative and Authorized Signer Mr. Ms. Print First and Last Name Title Signature Required Phone Email Fax Email Notifications Online Account Monthly Statements Online User Access Transaction Confirmations Additional Contact (Optional) Mr. Ms. Print First and Last Name Title *(Signature Required if Authorized Signer) Phone Email Fax Permissions (must check one) Email Notifications Online Account Authorized Signer to Move Funds* Monthly Statements Online User Access Read-Only Access Transaction Confirmations Additional Contact (Optional) Mr. Ms. Print First and Last Name Title *(Signature Required if Authorized Signer) Phone Email Fax Permissions (must check one) Email Notifications Online Account Authorized Signer to Move Funds* Monthly Statements Online User Access Read-Only Access Transaction Confirmations Mike Erwin Finance Manager 682-237-2912 merwin@trophyclub.org 682-237-2996 Steve Norwood Town Manager 682-237-2910 snorwood@trophyclub.org 682-237-2996 April Duvall Chief Financial Analyst 682-237-2914 aduvall@trophyclub.org 682-237-2996 Town Council Page 38 of 282 Meeting Date: March 24, 2020 717 17th Street, Suite 1850 Denver, Colorado 80202 T (800) 707-6242 F (855) 848-9910 clientservices@texasclass.com www.texasclass.com Page 8 Authorized Contacts (cont.) Additional Contact (Optional) Mr. Ms. Print First and Last Name Title *(Signature Required if Authorized Signer) Phone Email Fax Permissions (must check one) Email Notifications Online Account Authorized Signer to Move Funds* Monthly Statements Online User Access Read-Only Access Transaction Confirmations Additional Contact (Optional) Mr. Ms. Print First and Last Name Title *(Signature Required if Authorized Signer) Phone Email Fax Permissions (must check one) Email Notifications Online Account Authorized Signer to Move Funds* Monthly Statements Online User Access Read-Only Access Transaction Confirmations Additional Contact (Optional) Mr. Ms. Print First and Last Name Title *(Signature Required if Authorized Signer) Phone Email Fax Permissions (must check one) Email Notifications Online Account Authorized Signer to Move Funds* Monthly Statements Online User Access Read-Only Access Transaction Confirmations Ernest Gillespie Senior Accountant 682-237-2910 egillespie@trophyclub.org 682-237-2996 Leticia Vacek Town Secretary 682-237-2903 lvacek@trophyclub.org 682-237-2996 Wade L Carroll Assistant Town Manager 682-237-2984 wcarroll@trophyclub.org 682-237-2996 Town Council Page 39 of 282 Meeting Date: March 24, 2020 717 17th Street, Suite 1850 Denver, Colorado 80202 T (800) 707-6242 F (855) 848-9910 clientservices@texasclass.com www.texasclass.com Page 9 Accounts to be Established Entity Name: Texas CLASS Accounts Texas CLASS Government Accounts Desired Subaccount Name(s)*: Desired Subaccount Name(s)*: (To be completed by Participant) (To be completed by Participant) *Name must be limited to 30 characters. Town Council Page 40 of 282 Meeting Date: March 24, 2020 717 17th Street, Suite 1850 Denver, Colorado 80202 T (800) 707-6242 F (855) 848-9910 clientservices@texasclass.com www.texasclass.com Page 10 How did you hear about Texas CLASS? Texas CLASS Representative: _________________________ Referral by: _______________________________________ Texas CLASS Website Email Google Search Other: ___________________________________________ Town Council Page 41 of 282 Meeting Date: March 24, 2020 To: Mayor and Town Council From: Steve Norwood, Town Manager CC: Mike Erwin, Finance Manager Leticia Vacek, Town Secretary Re: Texas CLASS Investment Pool Town Council Meeting, March 24, 2020 Agenda Item: Consider and take appropriate action regarding a Resolution with Texas CLASS Investment Pool allowing the Town to invest its funds with Texas CLASS; and providing an effective date (S. Norwood). Background and Explanation: Since approval of the original resolution by council in 2016, Texas CLASS has added an additional pool, Texas CLASS Government. This resolution allows for participation in this new pool. The Texas Cooperative Liquid Assets Securities System Trust (Texas CLASS) was created in 1996 as a local government investment pool (LGIP) pursuant to Section 2256.016 of the Public Funds Investment Act, Texas Government Code (PFIA). Legal Review: Not applicable Board/Commission/ or Committee Recommendation: Not applicable Staff Recommendation: Staff recommends Council approval of Resolution 2020-04. Attachments: • Resolution 2020-04 • Texas Class Registration Packet Page 1 of 1 Town Council Page 42 of 282 Meeting Date: March 24, 2020 TOWN OF TROPHY CLUB, TEXAS RESOLUTION NO. 2020-04 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, APPROVING AND AUTHORIZING EXECUTION OF AN INVESTMENT AGREEMENT FOR PARTICIPATION IN THE TEXAS CLASS INVESTMENT POOL, DESIGNATING THE POOL AS AN AGENCY AND INSTRUMENTALITY, APPROVING INVESTMENT POLICIES OF THE POOL, APPOINTING AUTHORIZED REPRESENTATIVES, AND DESIGNATING INVESTMENT OFFICERS. WHEREAS, the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, as amended (the “Interlocal Act”), permits any “local government” to contract with one or more other “local governments” to perform “governmental functions and services,” including investment of public funds (as such phrases are defined in the Interlocal Act); and WHEREAS, the Interlocal Act authorizes the contracting parties to any interlocal agreement to contract with agencies of the State of Texas, within the meaning of Chapter 771 of the Government Code; and WHEREAS, the Public Funds Investment Act, Chapter 2256 of the Texas Government Code, as amended (the “PFIA”), authorizes the entities described in Subsection (a) of the PFIA to invest their funds in an eligible public funds investment pool; and WHEREAS, it is in the best interests of this governmental unit (“Applicant”) to invest its funds jointly with other Texas local governments in the Texas Cooperative Liquid Assets Securities System (Texas CLASS) in order better to preserve and safeguard the principal and liquidity of such funds and to earn an acceptable yield; and WHEREAS, Applicant is authorized to invest its public funds and funds under its control in TEXAS CLASS and to enter into the participation agreement authorized herein; and WHEREAS, the Government Entity is a Government Entity as defined in the Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: Section 1. The form of application for participation in Texas CLASS attached to this resolution is approved. The officers of Applicant specified in the application are authorized to execute and submit the application, to open accounts, to deposit and withdraw funds, to agree to the terms for use of the website for online transactions, to Town Council Page 43 of 282 Meeting Date: March 24, 2020 RES 2020-04 Page 2 of 3 designate other authorized representatives, and to take all other action required or permitted by Applicant under the Agreement created by the application, all in the name and on behalf of Applicant. Section 2. This resolution will continue in full force and effect until amended or revoked by Applicant and written notice of the amendment or revocation is delivered to the Texas CLASS Board Section 3. Terms used in this resolution have the meanings given to them by the application. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, on this 24th day of March 2020. C. Nick Sanders, Mayor Town of Trophy Club, Texas ATTEST: [SEAL] Leticia Vacek, Town Secretary Town of Trophy Club, Texas APPROVED TO AS FORM: J. David Dodd, III, Town Attorney Town of Trophy Club, Texas Town Council Page 44 of 282 Meeting Date: March 24, 2020 RES 2020-04 Page 3 of 3 EXHIBIT A Texas CLASS Enrollment Packet 2020 Town Council Page 45 of 282 Meeting Date: March 24, 2020 1 Trophy Wood Drive Trophy Club, Texas 76262Town of Trophy Club Legislation Details (With Text) File #: Version:22020-114-T Name: Status:Type:Agenda Item Draft File created:In control:3/16/2020 Town Council On agenda:Final action:3/24/2020 Title:Consider and take appropriate action regarding a request to extend the existing Temporary Use Permit allowing a construction trailer at Medlin Middle School, generally located west of Parkview Drive and south of Marshall Creek Road (S. Norwood). Attachments:Res No. 2020-05.pdf Exhibit A - Site Layout.pdf TC Report Medline - March 24, 2020.pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding a request to extend the existing Temporary Use Permit allowing a construction trailer at Medlin Middle School, generally located west of Parkview Drive and south of Marshall Creek Road (S. Norwood). Town Council Page 46 of 282 Meeting Date: March 24, 2020 TOWN OF TROPHY CLUB, TEXAS RESOLUTION NO. 2020-05 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB EXTENDING THE EXISTING TEMPORARY USE PERMIT FOR NORTHSTAR BUILDERS, IN CONJUNCTION WITH NORTHWEST INDEPENDENT SCHOOL DISTRICT, FOR A CONSTRUCTION TRAILER AT MEDLIN MIDDLE SCHOOL LOCATED AT 601 PARKVIEW DRIVE, AND PROVIDING FOR CONDITIONS. WHEREAS, Northstar Builders Group, in conjunction with Northwest Independent School District, has filed a temporary use permit application and formally requested an extension for the use of a construction trailer north of the Medlin Middle School football field located at 601 Parkview Drive in the Town of Trophy Club; and WHEREAS, Section 14.02.251(b) – Temporary Uses in the Trophy Club Code of Ordinances requires a temporary use permit to be approved by the Town Council through a Resolution; and WHEREAS, Section 14.02.251(c) – Temporary Uses in the Trophy Club Code of Ordinances requires an extension of a temporary use permit to be approved by the Town Council. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: Section 1. That the request by Northstar Builders Group, in conjunction with Northwest Independent School District, for an extension of the existing temporary use permit for a construction trailer at Medlin Middle School located at 601 Parkview Drive is hereby approved, subject to the following conditions: (A) The construction trailer, temporary fencing, and storage boxes shall be consistent with what is shown and described in Exhibit A; and (B) The construction trailer, temporary fencing, and storage boxes shall be removed from the property on or before September 30, 2021. Section 2. That the extension of the temporary use permit authorized by this Resolution shall comply with all Town of Trophy Club codes and ordinances, exempt where specifically exempted herein. Section 3. This Resolution shall take effect from and after its date of passage in accordance with law. Town Council Page 47 of 282 Meeting Date: March 24, 2020 PASSED and APPROVED by the Town Council of the Town of Trophy Club, Texas on this 24th day of March 2020. C. Nick Sanders, Mayor Town of Trophy Club, Texas [SEAL] ATTEST: Leticia Vacek, Town Secretary Town of Trophy Club, Texas APPROVED TO AS FORM: J. David Dodd III, Town Attorney Town of Trophy Club, Texas Town Council Page 48 of 282 Meeting Date: March 24, 2020 1. THE ARCHITECTURAL SITE PLAN IS ISSUED FOR REFERENCE AND COORDINATION PURPOSES ONLY. REFER TO CIVIL, LANDSCAPE, AND ELECTRICAL DRAWINGS FOR SITE GEOMETRY AND DIMENSIONAL CONTROL, SITE UTILITIES, SITE GRADING AND DRAINAGE, CONCRETE/ASPHALT EXTENTS AND DETAILS, SITE ELEMENTS INCLUDING SIDEWALKS, CURBS, AND RETAINING WALLS, SITE LIGHTING AND EXTERIOR BUILDING LIGHTING, LANDSCAPE PALNTING AND DETAILS, AND IRRIGATION LAYOUTS AND DETAILS2.2. THE CONSTRUCTION MANAGER SHALL OBEY ALL CITY ORDINANCES AND CODE WITH REGARDS TO FIRE LANES. THE CONSTRUCTION MANAGER SHALL NOT BLOCK ACCESS TO THESE DRIVES AT ANY TIME. 3. THE CONSTRUCTION MANAGER SHALL INFORM THE OWNER REGARDING ANY SITE DEMOLITION AND SHALL NOT IMPOSE ON ANY OWNER OPERATIONS AS OUTLINED IN THE SPECIFICATIONS.4. REFER TO CIVIL PLANS FOR SITE GRADING INFORMATION. SLOPE OF PROPOSED SIDEWALKS ARE NOT TO EXCEED 5% IN THE DIRECTION OF TRAVEL AND A 2% CROSS SLOPE. PROVIDE A LEVEL SURFACE WITHIN 72" OF EXTERIOR DOORS.5. FINISH FLOOR ELEVATIONS SHOWN ON ARCHITECTURAL AND STRUCTURAL DRAWINGS ARE BE BASED ON LEVEL 01 BEING AT 100'-0". FINISH FLOOR ELEVATIONS SHOWN ON CIVIL DRAWINGS ARE IN RELATION TO ELEVATION ABOVE SEA LEVEL.6. EXPANSION JOINT FILLER AND SEALANT SHALL BE INSTALLED AT ALL LOCATIONS WHERE CONCRETE SIDEWALKS MEET THE BUILDING.7. FIRE LANES SHALL BE CLEARLY MARKED ON THE PAVEMENT PER CITYOF IRVING REQUIREMENTS.GENERAL NOTESLEGENDPLAN NOTESPARKING REQUIREMENTSNEW CONCRETE SIDEWALK OR PAVING, REF. CIVILNEW LANDSCAPED AREA, REF. LANDSCAPEPROPERTY LINEUTILITY EASEMENT OR BUILDING SETBACKEXISTING TREE TO REMAINPROPOSED NEW TREE, REF. LANDSCAPENEW BUILDING FOOTPRINTNEW PROPOSED FIRE LANEEXISTING FIRE LANEREQUIRED ACCESSIBLE PATHEXISTING PARKING COUNTXXNEW SODDED AREA, REF. LANDSCAPEKEY PLANTRUENORTHEXISTING BUILDINGPARKVIEW DRIVEBOBCAT BOULEVARDMARSHALL CREEK ROAD3201017359465658101210121010868NOTE:REPLACE DOMESTIC WATER MAIN LINE FROM PUBLIC METER TO SCHOOLNEW 1-STORYBAND HALLADDITION3,564 SFNEW 2-STORYCLASSROOMADDITION13,452 SF01"2"1/2"DOCUMENTS ARE INCOMPLETE AND MAY NOT BE USED FOR REGULATORY APPROVAL, PERMITTING, OR CONSTRUCTION PURPOSES.5646 MILTON STREET, SUITE 426DALLAS, TEXAS 75206COPYRIGHT © 2017 GLENN|PARTNERSWWW.GLENN-PARTNERS.COMGLENN|PARTNERS PROJECT NO.C:\Users\jgrant\Documents\ARCH-MEDLIN MS_R19_jgrant.rvt5/31/2019 3:21:50 PMNORTHWEST INDEPENDENT SCHOOL DISTRICTMEDLIN MIDDLE SCHOOL - ADDITION AND RENOVATION601 PARKVIEW DRIVETROPHY CLUB, TEXAS 76262DESIGN DEVELOPMENTM_A04-01ARCHITECTURALSITE PLAN18-02405.31.2019SCALE: 1" = 40'-0"ARCHITECTURAL SITE PLAN01CITY OF TROPHY CLUB PARKING ORDINANCE (14.02.353)MEDLIN MIDDLE SCHOOL STUDENT SIZE 1,200 STUDENTSCITY OF TROPHY CLUB PARKING REQUIREMENTS1 SPACES FOR EACH 15 STUDENTS1,200/15TOTAL PARKING SPACES REQUIRED 80 REQUIRED SPACES*CURRENT SITE PARKING MEETS REQUIREMENTS*ACCESSIBILITY REQUIREMENTSTEXAS ACCESSIBILITY STANDARDS 151-200 SPACES, PROVIDE 6 ACCESSIBLECITY OF TROPHY CLUB STANDARDS 151-200 SPACES, PROVIDE 6 ACCESSIBLE1 VAN ACCESSIBLE SPACE PER EVERY 6 ACCESSIBLE SPACES 1 REQUIREDEXISTING PARKING COUNTSREGULAR SPACES 187ACCESSIBLE SPACES 10VAN ACCESSIBLE SPACES 10NEW PROPOSED PARKING COUNTSREGULAR SPACES 3ACCESSIBLE SPACES 0VAN ACCESSIBLE SPACES 0TOTAL SPACES PROVIDEDREGULAR SPACES 190ACCESSIBLE SPACES 10 (6 REQUIRED)VAN ACCESSIBLE SPACES 10 (1 REQUIRED)NO REVISIONDATETown CouncilPage 49 of 282Meeting Date: March 24, 2020 Page 1 of 2 To: Mayor and Town Council From: Lisa Payne, Town Planner CC: Steve Norwood, Town Manager Leticia Vacek, Town Secretary Re: Case TUP-20-001 Town Council Meeting, March 24, 2020 Agenda Item: Case TUP-20-001 (Medlin Construction Trailer Extension) Consider and take appropriate action regarding a request to extend the existing Temporary Use Permit allowing a construction trailer at Medlin Middle School, generally located west of Parkview Drive and south of Marshall Creek Road. Strategic Link: Infrastructure & Development – Foster a business-friendly environment. Background and Explanation: According to Sec. 14.02.251 of the Code of Ordinances, construction offices that are used temporarily by contractors during the construction of buildings must obtain a Temporary Use Permit (TUP) through approval from Town Council, after recommendation by the Planning & Zoning Commission. An expiration date is included on the resolution and if an extension is later needed, it must be approved by Town Council without the requirement to return to P&Z. Northstar Builders is requesting approval of the extension of the TUP (Resolution No. 2019-21) that allows one construction trailer, temporary fencing, and Conex storage boxes to locate on the Medlin Middle School property while construction to expand is ongoing. Staff was told that construction of the building additions to Medlin Middle School was put on hold last fall due to budget constraints at NISD, but they are now ready to start construction. Completion of the project and removal of equipment is expected by September 30, 2021. No changes have been made to the previously approved layout. The 54 foot long construction trailer and the 40 foot long Conex storage boxes will be located north of the middle school football field and track and surrounded by 6 foot tall chain link fencing with black wind screens. Screened fencing will also surround the two areas of construction, which will be at the northwest and southeast corners of the school. Refer to Exhibit A for a visual representation. Town Council Page 50 of 282 Meeting Date: March 24, 2020 Page 2 of 2 Financial Considerations: Not applicable. Legal Review: Town Attorney has reviewed this item and concurs with the Staff recommendation. Staff Recommendation: Staff recommends approval of the extension of the existing Temporary Use Permit through September 30, 2021. Attachments: • Resolution No. 2020-05 • Exhibit A – Site Layout Town Council Page 51 of 282 Meeting Date: March 24, 2020 1 Trophy Wood Drive Trophy Club, Texas 76262Town of Trophy Club Legislation Details (With Text) File #: Version:22020-116-T Name: Status:Type:Agenda Item Draft File created:In control:3/18/2020 Town Council On agenda:Final action:3/24/2020 Title:Consider and take appropriate action regarding the National Incident-Based Reporting System (NIBRS) Justice Assistance Grant Program for the Police Department (S. Norwood). Attachments:Staff Report - Grant package NIBRS Compliant RMS -2020.pdf RES. 2020-06 -NIBRS Compliant RMS Program.pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding the National Incident-Based Reporting System (NIBRS)Justice Assistance Grant Program for the Police Department (S. Norwood). Town Council Page 52 of 282 Meeting Date: March 24, 2020 Page 1 of 2 To: Mayor and Town Council From: Patrick Arata, Police Chief CC: Steve Norwood, Town Manager Leticia Vacek, Town Secretary Re: NIBRS Compliant RMS Program Grant Program Town Council Meeting, March 24, 2020 Agenda Item: Consider and take appropriate action regarding the Justice Assistance Grant Program for the Police Department (S. Norwood). Strategic Link: Safety & Security: Achieve exceeding high standards for public safety and low crime rate. Background and Explanation: Justice Assistance Grant Program Resolution: This Grant resolution is to Authorized the Town Manager to execute all necessary documents related to grants submitted under the Office of the Governor, Criminal Justice Division Grant Program. This grant will allow the Police Department to purchase NIBRS Compliant RMS software. This will allow the department to provide detailed reporting information to the FBI’s national reporting system. The grant will cover $35,000.00 of the cost. This approval is needed to apply for the grant. Financial Considerations: The Grant value is approximately: $35,000.00 Legal Review: Not applicable Board/Commission/ or Committee Recommendation: Not applicable Town Council Page 53 of 282 Meeting Date: March 24, 2020 Page 2 of 2 Staff Recommendation: Staff recommends Council approve the suggested Grant amendment. Attachments: • NIBRS Compliant RMS Program Grant Resolution Town Council Page 54 of 282 Meeting Date: March 24, 2020 TOWN OF TROPHY CLUB RESOLUTION NO. 2020-06 A RESOLUTION OF THE TOWN OF TROPHY CLUB, TEXAS APPROVING THE SUBMISSION TO THE OFFICE OF THE GOVENOR, CRIMINAL JUSTICE DIVISION, OF A GRANT APPLICATION FOR THE NIBRS COMPLIANT RMS PROGRAM FOR THE 2020-2021 FISCAL YEAR; DESIGNATING AND AUTHORIZING THE TOWN MANAGER OR HIS DESIGNEE AS THE TOWN’S AUTHROIZED OFFICIAL TO EXECUTE ALL NECESSARY DOCUMENTS; AND PROVIDING AN EFFECTIVE DATE: WHEREAS, the Town of Trophy Club finds it in the best interest of the citizens of the Town of Trophy Club that the NIBRS Compliant RMS Program to be operated in the 2020-2021 fiscal year; and WHEREAS, in the furtherance of that objective, the Town Council determines it appropriate and in the best interests of the public health, safety and welfare to submit a grant application to for the NIBRS Compliant RMS Program to the Office of the Governor, Criminal Justice Division; and WHEREAS. The Town of Trophy Club agrees that in the event of loss or misuse of the Criminal Justice Division funds. The Town of Trophy Club assures that the funds will be returned to the Criminal Justice Division in full; and WHEREAS, the Town of Trophy Club designates Steven Norwood, Town Manager as the grantee’s authorized official, the authorized official is given the power to apply for, accept, reject, alter, or terminate the grant on behalf of the Town of Trophy Club and to execute or name a designee to execute all necessary documents. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN OF TROPHY CLUB, TEXAS: Section1. The Town of Trophy Club hereby approves the submission of a grant application for the NIBRS Compliant RMS Program to the Office of the Governor, Criminal Justice Division and authorizes the Town Manager of his designee to execute all documents. Section 2. This Resolution shall become effective from and after the date of passage in accordance with law. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, on this 24th day of March 2020. _____________________________ C. Nick Sanders, Mayor Town of Trophy Club, Texas ATTEST: APPROVED AS TO FORM: _________________________ _________________________ Leticia Vacek, Town Secretary J. David Dodd III, Town Attorney Town of Trophy Club, Texas Trophy Club, Texas Grant Application Number: 4116001 Town Council Page 55 of 282 Meeting Date: March 24, 2020 1 Trophy Wood Drive Trophy Club, Texas 76262Town of Trophy Club Legislation Details (With Text) File #: Version:22020-102-T Name: Status:Type:Agenda Item Regular Session File created:In control:3/4/2020 Town Council On agenda:Final action:3/24/2020 Title:Consider and take appropriate action regarding the purchase of a new LIFEPAK 15 monitor/defibrillator from Stryker for the Fire Department, not to exceed the amount of $30,036.11 (S. Norwood). Attachments:Staff Report LIFEPAKMarch 24, 2020.pdf Stryker Defbrillator.pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding the purchase of a new LIFEPAK 15 monitor/defibrillator from Stryker for the Fire Department, not to exceed the amount of $30,036.11 (S. Norwood). Town Council Page 56 of 282 Meeting Date: March 24, 2020 Page 1 of 2 To: Mayor and Town Council From: Gary Cochran, Interim Fire Chief CC: Steve Norwood, Town Manager Leticia Vacek, Town Secretary Re: LIFEPAK 15 Monitor/Defibrillator Replacement PO # Agenda Item: Consider and take appropriate action regarding the purchase of a new LIFEPAK 15 monitor/defibrillator from Stryker. Strategic Link: This item relates primarily to the following strategic priorities and goals of the Town’s strategy map. 1. Achieve exceedingly high standards for public safety and low crime rates 2. Quick response life saving measures for our citizens and community Background and Explanation: The LIFEPAK 15 monitor/defibrillator will be a replacement monitor for a 2013 model monitor/defibrillator for the Trophy Club Fire Department. The attached sales quote outlines the cost of the monitor/defibrillator and two extra batteries for the price of $ 31, 762.51, the fire department will also receive a trade-in credit of $ 6,500.00 for the 2013 model, upon approval and execution of the purchase. It is a routine purchase of a new monitor/defibrillator every 7 years per Physio service contract, as the Trophy Club Fire Department budgets for a replacement unit, it will always receive a credit for trade-in of the older unit. Financial Considerations: An initial cost of $31,762.51, before the trade-in credit of $6,500.00, makes the total cost of the new monitor/defibrillator to be $ 30,036.11, which was budgeted in the FY20 budget as cost for the fire department Town Council Page 57 of 282 Meeting Date: March 24, 2020 Page 2 of 2 Legal Review: The fire department has attached the sole source letter for the Stryker for a LIFEPAK 15 monitor/defibrillator, which will be reviewed by Town of Trophy Club Legal Department, David Dodd. Board/Commission/ or Committee Recommendation: Not applicable Staff Recommendation: Staff recommends approval of a new Stryker LIFEPAK 15 monitor/defibrillator to replace a 2013 model LIFEPAK 15 for Emergency Medical Services. Attachments: • Stryker sole source letter • Stryker Quote # 10141937 for new LIFEPAK 15, two extra batteries and trade-in credit Town Council Page 58 of 282 Meeting Date: March 24, 2020 Town CouncilPage 59 of 282Meeting Date: March 24, 2020 Town CouncilPage 60 of 282Meeting Date: March 24, 2020 Town CouncilPage 61 of 282Meeting Date: March 24, 2020 Town CouncilPage 62 of 282Meeting Date: March 24, 2020 1 Trophy Wood Drive Trophy Club, Texas 76262Town of Trophy Club Legislation Details (With Text) File #: Version:22020-118-T Name: Status:Type:Agenda Item Draft File created:In control:3/18/2020 Town Council On agenda:Final action:3/24/2020 Title:Consider and take appropriate action regarding the new rate order change to the sewer rates only to reflect the same rate adopted by Trophy Club Municipal Utility District No. 1 (S. Norwood). Attachments:Staff Report - MUD 2020 PID Rate Order Change.pdf Rate Update April 1, 2020-rate changes.pdf 2020-0316A MUD Rate Order.pdf ORD 2020-05 PID Wastewater Fees.pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding the new rate order change to the sewer rates only to reflect the same rate adopted by Trophy Club Municipal Utility District No. 1 (S. Norwood). Town Council Page 63 of 282 Meeting Date: March 24, 2020 Page 1 of 2 To: Mayor and Town Council From: Tommy Uzee, Director of Community Development CC: Steve Norwood, Town Manager Leticia Vacek, Town Secretary/RMO Re: PID Water and Wastewater Fees Rate Order Change Town Council Meeting, March 24, 2020 Agenda Item: Consider and take appropriate action regarding an Ordinance of the Town amending Appendix A, Fee Schedule, to establish fees and rates for water and wastewater services to customers within the boundaries of Trophy Club Public Improvement District (PID) No. 1; providing that Trophy Club Municipal Utility District (TCMUD) No. 1 Services Rules and Policies are applicable to customers within the PID No. 1; and providing a penalty and effective date (Staff). Strategic Link: Collaborate effectively with other governmental entities. Background and Explanation: The TCMUD No. 1 Board of Directors met on March 16, 2020 to determine the final average rates; therefore the Town is adopting a Town Rate Order identical to the amended MUD Rate Order. The changes provided on the attachments identify a rate increase in sewer service fees for both residential and commercial applications. Financial Considerations: None Applicable Legal Review: None Applicable Board/Commission/ or Committee Recommendation: The TCMUD action of approval. Town Council Page 64 of 282 Meeting Date: March 24, 2020 Page 2 of 2 Staff Recommendation: Staff recommends approval of Ordinance No. 2020-05 as submitted. Attachments: • Ordinance 2020-05 PID Water and Wastewater Fees. • TCMUD Order 2020-316A Town Council Page 65 of 282 Meeting Date: March 24, 2020 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 RATE CHANGES EFFECTIVE ON APRIL 1, 2020 Residential Sewer Rates CURRENT EFFECTIVE APRIL 1, 2020 Base Rate: $ 20.60 $ 22.15 0 to 4,000 $ 3.80 $ 4.10 4,001 to 8,000 $ 5.40 $ 5.85 8,001 to 12,000 $ 7.65 $ 8.25 12,000+ $ 10.90 $ 11.75 Commercial Sewer Rates CURRENT EFFECTIVE APRIL 1, 2020 Base Rate: $ 20.60 $ 22.15 Volumetric Rate: $ 6.37 $ 6.94 Town Council Page 66 of 282 Meeting Date: March 24, 2020 RATE ORDER TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.1 ORDER NO. 2020-0316A AN ORDER ESTABLISHING POLICIES, PROCEDURES, AND RATES FOR WATER AND SEWER SERVICE; PROVIDING FEES FOR CONNECTION, RECONNECTION, INSPECTION, ACCURACY READINGS, AND RETURNED CHECKS; REQUIRING DEPOSITS FOR SERVICE; PROVIDING A PENALTY FOR DELINQUENT PAYMENTS; AND CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT. WHEREAS, Trophy Club Municipal Utility District No. 1 (the “District”) is the owner and/or operator of a water and sewer system designed to serve present and future inhabitants within the District and the Trophy Club Development; and WHEREAS, the District’s most recent Rate Order was adopted on September 16, 2019 (Order No 2019-0916A), and additional modifications are needed. The District desires to establish all of its rate policies in a single new Rate Order; and WHEREAS, the Board of Directors of the District has carefully considered the terms of this Rate Order No. 2020-0316A and is of the opinion that the following conditions and provisions should be established as the policies, procedures, and rates for obtaining service from the District’s water and sewer system. THEREFORE, IT IS ORDERED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 THAT: ARTICLE I TAP FEES AND CONNECTION POLICY Section 1.01. Initiation of Water and Sanitary Sewer Connections. Each person desiring a water and sanitary sewer service connection to the District’s System shall be required to pay such fees as set forth in this Order. No service shall be established or re-established until such fees are paid. All service connections are subject to all other rules, regulations, and policies of the District. A. Certification of System. Connections shall not be made to the District’s System or portions of the System until the District’s engineer or District staff has certified that the System or applicable portion thereof is operable and meets all regulatory requirements. B. Backflow Prevention. No water connections from any public drinking water supply system shall be allowed to any residential or commercial establishment where an actual or potential contamination hazard exists unless the public water facilities are protected from contamination. Rate Order No. 2020-0316A Rate Order 1 of 17Town Council Page 67 of 282 Meeting Date: March 24, 2020 At any residential or commercial establishment where an actual or potential contamination hazard exists, protection shall be required in the form of a backflow prevention assembly. The type of assembly required shall be specified by the District. The existence of potential contamination hazards without installation having been made of the means of control and prevention as set out in the preceding paragraph; or, the same having been installed, there is a failure to properly maintain the same, shall be considered sufficient grounds for immediate termination of water service. Service can be restored only when the health hazard no longer exists, or when the health hazard has been isolated from the public water system in accordance with the foregoing requirements. All backflow prevention assemblies that are required according to this section shall be tested upon installation by a recognized backflow prevention assembly tester and certified to be operating within specifications. Backflow prevention assemblies that are installed to provide protection against health hazards must also be tested and certified to be operating within specifications at least annually by a recognized backflow prevention assembly tester. The Customer shall, at his expense, properly install, test, and maintain any backflow prevention device required by this Rate Order. Copies of all testing and maintenance records shall be provided to the District within ten (10) days after maintenance and/or testing is performed. If the Customer fails to comply with the terms of this Order, the District shall, at its option, either terminate service to the property or properly install, test, and maintain an appropriate backflow prevention device at the service connection at the expense of the Customer. Any expenses associated with the enforcement of this agreement shall be billed to the Customer. C. Availability of Access/Obstructions. By application for connection to the District’s System, the Customer shall be deemed to be granting to the District and its representatives a right of ingress and egress to and from the meter or point of service for such installation, maintenance and repair as the District, in its judgment, may deem reasonably necessary. The Customer shall also be deemed to be granting to the District and its representatives a right of ingress and egress to the Customer’s property, including the exterior of the Customer’s premises, for the purpose of performing the inspections and completing the Customer’s Service Inspection Certifications required by the District’s rules and regulations. Taps and connections will not be made when, in the opinion of the District, building materials or other debris obstructs the work area or the work area is not completed or finished to grade. When sidewalks, driveways or other improvements have been constructed prior to application for service, such application shall be construed and accepted as the Customer’s waiver of a claim for any damages to such improvements resulting from the reasonable actions of the District in installation of the connection. Rate Order No. 2020-0316A Rate Order 2 of 17Town Council Page 68 of 282 Meeting Date: March 24, 2020 Section 1.02. Residential Fire Lines, Connections, and Fees. A residence of at least six-thousand (6,000) square feet but less than eight-thousand (8,000) square feet shall have installed on its one-inch (1”) water service line, for fire protection, a one-inch (1”) U-branch, with a separate meter and meter-box. The cost of installation, including parts, equipment, and labor shall be eight-hundred dollars ($800.00), payable at the time of permitting. A residence of eight-thousand (8,000) square feet or greater, in addition to its regular one- inch (1”) water service line, shall have installed a separate one-and one-half (1 ½ “) water service line for fire protection with its own meter and meter-box. The cost of connection and installation of the fire line and meter shall be either one thousand six hundred dollars ($1,600.00) if the home is on the same side of the street as the waterline; or, if it is on the opposite side of the street from the waterline, necessitating boring, then the charge shall be two thousand nine hundred seventy five dollars ($2,975.00), payable at the time of permitting to the District. Section 1.03. Connections by District. All Connections to the District’s water and sewer system shall be made with written approval of the District and in accordance with the District’s Plumbing Code and its rules and regulations. No person except the General Manager or his/her authorized agent shall be permitted to tap or make any connection to the mains or distribution piping of the District’s water system, or make any repairs, additions to, or alterations in any meter, box, tap, pipe, cock or other fixture connected with the water system or any manhole, main, trunk or appurtenance of the District’s sanitary sewer system. No sewer connection shall be covered in the ground and no house lead shall be covered in the ground before it has been inspected and approved by a licensed plumbing inspector with jurisdiction of the site. Section 1.04. Water and Sewer Tap Fees. Fees for water and sewer taps performed by the District are as follows: Water Service Taps: Size Fee for Tap Bore (if applicable) up to 1" Tap $1,200.00 $5,000.00 2" Tap $1,800.00 $10,000.00 3" Tap $4,500.00 $10,000.00 4" Tap $5,500.00 $10,000.00 6" Tap $6,500.00 $10,000.00 8" Tap $7,500.00 $10,000.00 10" Tap $8,500.00 $10,000.00 Sewer Service Taps: Actual cost plus 10%. An estimate will be provided prior to work being performed. Rate Order No. 2020-0316A Rate Order 3 of 17Town Council Page 69 of 282 Meeting Date: March 24, 2020 When water taps have been made by someone other than the District personnel, there is an installation/inspection fee of fifty dollars ($50.00) plus the cost of the appropriate meter. Section 1.05. Inspections and Fees. Fees for permits and for plumbing inspections (other than for sewer and backflow inspections referred to below in subparagraphs A and B) should be paid to the city or town in which the property is located or to the District if the property is not located within a city or town. A. Sewer Inspection and Fees. Sewer connections and house service lines shall be inspected by the District. An inspection fee of one-hundred-fifty dollars ($150.00) shall be paid to the District for each connection to the District sanitary sewer system. Installations that fail to conform at any time to the rules and regulations shall be disconnected. Any customer whose connection is disconnected for such failure shall be notified as to the basis for such disconnection. After noted deficiencies have been corrected, a re-inspection shall be made upon payment to the District of a re- inspection fee of twenty-five dollars ($25.00), plus payment by the customer of all outstanding charges. If subsequent re-inspections are required before the sewer connection and service lines are in compliance with the rules and regulations, a re- inspection fee of twenty-five dollars ($25.00) shall be paid to the District for each subsequent re-inspection. Inspections by the District requested after regular business hours will be charged at a minimum of one-hundred dollars ($100.00). B. Backflow Inspections. Backflow installations (residential and commercial) that require annual inspections must have a certified Backflow Technician perform the testing and submit the report annually to the District. C. Swimming Pool Discharge into Sanitary Sewer System. New swimming pools permitted on or after June 24, 2005, shall have all backwash and/or drainage from said pool discharge into the sanitary sewer system. Owners of pools built or permitted prior to July 1, 2005 are not required to retrofit the pool equipment and tie into the sanitary sewer. However, swimming pool backwash and drainage must drain to grassy areas and is not permitted to flow into the storm drain system, creeks, or other waterways. For swimming pools discharging to the sanitary sewer system, an indirect connection shall be made by means of an air break, discharging into a tailpiece installed a minimum of six inches (6”) (or 152 mm) above adjacent grade. The tailpiece shall be connected to a minimum three-inch (3” or 76mm) p-trap not less than twelve inches (12” or 304 mm) below grade which discharges into the yard cleanout riser. Backwash systems shall not flow onto neighboring properties or into the storm sewer. The tie-in and inspection fee shall be seventy-five dollars ($75.00) to be paid at the time of issuance of the pool permit. Rate Order No. 2020-0316A Rate Order 4 of 17Town Council Page 70 of 282 Meeting Date: March 24, 2020 Section 1.06 Temporary Water Service-Construction Meters. A. Construction Meters. The District shall be authorized to make a temporary connection to any fire hydrant or flushing valve upon request for temporary water service. All temporary service shall be metered and billed to the temporary customer as provided herein. All unauthorized withdrawal of water from flushing valves, fire hydrants, or other appurtenances of the District’s System is prohibited. B. Application and Deposit. Each temporary customer desiring temporary water service shall be required to execute an application for such temporary service and shall provide a minimum-security deposit of one-thousand-seven-hundred- seventy-five dollars ($1,775.00) for a three-inch (3”) meter and RPZ; one-thousand- four-hundred-twenty-five dollars ($1,425.00) for a smaller meter and smaller RPZ. The deposit shall be made by cashier’s check or money order payable to the District. The deposit shall be used by the District to secure the payment for temporary water supplied by the District, the installation fee, and the cost of repair of any damages caused by the temporary customer. The balance of the security deposit, if any, shall be refunded after disconnection from the District’s System. C. Construction Meter Fees and Rates. Construction meters will be charged the same monthly rates (base fee and volumetric rate) for water as commercial accounts as set forth in Article II of this Rate Order. D. Temporary Construction Meter Use and Billing. Construction meters can be rented by filing an application at the District office and payment of all required deposits. Upon approval of the application, a temporary meter and RPZ will be provided to the applicant. Installation on any fire hydrant or flush valve must be approved by the District and District meters may only be used within the District’s service area. The location of installation must be indicated on the application and cannot be relocated unless notification is provided to and approved by the District in advance. Temporary meters may only be rented for a period of ninety (90) days and extensions may be approved upon request and approval. Failure to return a temporary meter or request a usage extension by the due date will result in repossession of the meter and forfeiture of the deposit. Upon return of a temporary construction meter, an inspection of the meter and RPZ will be performed. Any and all damages to the meter and/or RPZ will be charged to the customer and deducted from the deposit. If the deposit does not cover the total amount of damages, the balance will be billed to the customer and payment must be received by the due date. Failure to pay all charges due will result in suspension of rental privileges until payment in full and may result in collection procedures. E. Return of Temporary Meter at District Request. The District reserves the right to request the return of a temporary construction meter at any time determined Rate Order No. 2020-0316A Rate Order 5 of 17Town Council Page 71 of 282 Meeting Date: March 24, 2020 necessary by the District. Should Stage 2 Drought Restrictions or more stringent restrictions be implemented, all temporary construction meters must be returned within three (3) business days of notification by the District. Failure to promptly return the temporary meter within three business days will result in repossession of the meter and forfeiture of the deposit. Should District personnel be unable to locate the temporary meter for repossession, theft charges will be filed against the meter holder with local law enforcement. Section 1.07 Service Outside the District. The rates and charges stated in this Rate Order are for services to customers and property located within the boundaries of the District. Any service to a customer or property located outside the boundaries of the District shall be granted only upon approval by the Board of Directors of the District. Out of District customers will pay the adopted rates for in district customers plus 15% for both water and sewer base and volumetric rates. For the purpose of customer classification, Trophy Club Park at Lake Grapevine is considered “in-district” and subject to all rates and service provisions related to in-district customers. Section 1.08 Service to New Development and Extension of Facilities. A. New Service Connections and Extension of Facilities. New service connections and extension of facilities must be constructed and installed in accordance with the District’s Rules Governing New Service Connections and Extension of Facilities as approved through separate Resolution by the Board of Directors. Applicants for Non-Standard Service must submit all required information and pay all fees prior to conveyance of facilities and service commencement. B. Application Fee for Non-Standard Service. Upon request for non-standard service an application fee of $150 must be submitted. C. Design of Facilities. All water and wastewater facilities to be constructed to extend service to new developments must be designed by a professional engineer licensed in the State of Texas at the applicant’s expense. The District must approve the plans and specifications prior to the commencement of construction. At the time of plan review submittal, the applicant must provide payment to the District in the amount of $2,500.00 as deposit for review of each set of plans and specifications reviewed by the District’s engineer. The actual final fee for plan review by the District’s engineer shall be provided to the applicant upon approval of the plans. If there is a balance due over the $2,500 paid by the applicant at submittal, the balance due shall be paid by the applicant prior to receiving District approval of plans and specifications. District construction plans, and specifications shall be strictly adhered to, but the District reserves the right to change order any specifications, due to unforeseen circumstances during the design or construction of the proposed facilities, or as otherwise authorized by applicable laws, to better facilitate the operation of the facility. All expenses and costs associated with a change order shall be charged to the Rate Order No. 2020-0316A Rate Order 6 of 17Town Council Page 72 of 282 Meeting Date: March 24, 2020 applicant. Service to new developments is subject to available capacity in the District’s water and wastewater systems. All new potential developments must seek written approval from the General Manager that capacity is available to serve and may be required to install offsite improvements if capacity is not available with current system infrastructure. D. Inspection Fees. The District will inspect all infrastructure during construction. Inspection fees of $100 per lot must be paid to the District prior to a notice to proceed being issued. A minimum of $500 for inspection fees is required if less than five (5) lots are to be developed. Section 1.09 Water Meter Fees. METER SIZE WATER METER FEE 5/8" $279 1" $353 1-1/2" $736 2" Quoted at Time of Purchase 3" Quoted at Time of Purchase 4" Quoted at Time of Purchase 6" Quoted at Time of Purchase 8" Quoted at Time of Purchase 10" Quoted at Time of Purchase Fees must be received by the District before any connection is installed. A customer seeking service through an oversized connection line or from a meter larger than a one-inch (1”) standard meter shall follow the District’s policy for new development as outlined in Section 1.07 above. Should approval be granted by the District, the customer agrees to pay the water and sewer rates as outlined in Article II of this Rate Order. Section 1.10. Fort Worth Impact Fee. Each customer requesting an initial connection, shall also pay to the District the applicable City of Fort Worth Impact Fee. Section 1.11. Title to Facilities. Title to all water meters, water and sewer taps, and all other appurtenances, including meter boxes, shall lie in the District. Rate Order No. 2020-0316A Rate Order 7 of 17Town Council Page 73 of 282 Meeting Date: March 24, 2020 ARTICLE II SERVICE RATES Section 2.01. Water Service Rates. The following monthly rates for water service shall be in effect for each separate connection within the District. The base rate for each connection (meter) is calculated upon meter size and will be charged for each residential and commercial meter: (1) Water Rates BASE RATES: METER SIZE MONTHLY BASE RATE 5/8" & 3/4" $18.15 1" $34.11 1.5" $60.26 2" $91.63 3" $164.84 4" $269.43 6" $530.89 VOLUMETRIC RATES: Gallons Used Rate per 1000 gallons 0 to 6,000 $3.96 6,001 to 17,000 $4.61 17,001 to 25,000 $5.34 25,001 to 50,000 $6.20 50,001+$7.21 (2) Multi-Unit Buildings. Each multi-unit building (apartments, townhomes, business complex, etc.) served by a single 5/8” meter or 1” meter shall be billed the base rate for the meter size servicing the building multiplied by the number of units in the building or complex. Rate Order No. 2020-0316A Rate Order 8 of 17Town Council Page 74 of 282 Meeting Date: March 24, 2020 Section 2.02. Sewer Service Rates. The following monthly rates for the collection and disposal of sewage shall be in effect for each separate connection within the District: Residential Sewer Rates: The District uses winter averaging for the purpose of calculating sewer charges on utility bills. The sewer charges are based on average water consumption for three months (December, January and February billing). The average consumption will be analyzed annually and take effect the first of April each year. New customers will be assigned a default value user charge that is equal to the average winter water use for all residential customers. The winter average used for new residential customer is 7,000 gallons. A customer with a water leak during the averaging months may request a reduction in the sewer usage calculation. Any customer filling a pool after resurfacing, construction or major repairs during the averaging months may request that their winter average calculation be adjusted. Requests for a reduction in sewer usage calculations must be submitted in writing to the General Manager and have documentation showing the construction or repairs as applicable to the issue. The General Manager or a duly authorized representative may adjust the metered water usage in determining the winter average. To assist in establishing winter averaging sewer rates, customers are encouraged to submit requests for sewer average reductions no later than March 15th. A. Residential Sewer Rates: Effective April 1, 2020   Base Rate: $ 22.15 0 to 4,000 $ 4.10 4,001 to 8,000 $ 5.85 8,001 to 12,000 $ 8.25 12,000+ $ 11.75 B. Commercial Sewer Rates: Effective April 1, 2020     Base Rate: $ 22.15 Volumetric Rate:$ 6.94 *Commercial sewer usage is billed based on actual water usage per month Rate Order No. 2020-0316A Rate Order 9 of 17Town Council Page 75 of 282 Meeting Date: March 24, 2020 C. Multi-Unit Buildings. Each multi-unit building (apartments, townhomes, business complex, etc.) shall be billed the base rate for each meter servicing the building and sewer usage will be billed based on actual water usage per month. Section 2.03 Effluent Charge. The effluent from the District’s wastewater treatment plant will be sold pursuant to separate contracts entered into with the District and approved by its Board of Directors. Section 2.04. Master Meter (Cooling Tower Calculation). The water usage from the master meter reading minus the reading from the “Blow Down” meter equals the “evaporation.” Water usage less “evaporation” equals sewer usage for billing purposes. Section 2.06. Regulatory Assessment. Pursuant to Section 5.235, Texas Water Code, and 30 TAC 291.76, the District shall collect and pay an annual regulatory assessment fee to the Texas Commission on Environmental Quality (“TCEQ”) in the amount required by law on the total charges for retail water and sewer service billed to its customers annually. The regulatory assessment fee will be detailed separately on customer bills. Section 2.07. No Reduced Rates or Free Service. All customers receiving water and/or sewer service from the District shall be subject to the provisions of this Order and shall be charged the rates established in this Order. No reduced rate or free service shall be furnished to any customer whether such user be a charitable or eleemosynary institution, a political subdivision, or municipal corporation; provided, however, this provision shall not prohibit the District from establishing reasonable classifications of customers. ARTICLE III SERVICE POLICY Section 3.01. Security Deposits. Security deposits shall be required as follows: A. Builder’s Deposit. A seventy-five dollar ($75.00) security deposit shall be required of builders for each tap made by the District for such service connection, payable at or prior to the time that such tap is made, and the security deposit is refundable to the builder when the account is later transferred to an owner if that account and all other accounts of the builder are current at the time of the transfer; but, if that account or any other account of the same builder is not current at the time of such transfer to an owner, then the security deposit shall be applied against the outstanding balance of the builder’s account(s) at the time of such transfer. The District shall deduct from the deposit the cost to repair any damage caused to the District’s property by the builder or the builder’s employees, contractors, Rate Order No. 2020-0316A Rate Order 10 of 17Town Council Page 76 of 282 Meeting Date: March 24, 2020 subcontractors or agents and shall deduct any delinquent water and sewer service bills of the builder. In the event any amounts are deducted from the builder’s deposit, it will be incumbent on the builder to reinstate the original amount of the deposit, and failure to do so will result in the suspension of any additional water taps for the builder. B. Residential Owners. A security deposit of seventy-five ($75.00) shall be required from each residential owner customer for a single-family home connected to the District’s system. Upon discontinuation of service, the deposit shall be applied against amounts due, including disconnection fees. C. Commercial Deposits   COMMERCIAL DEPOSITS METER SIZE WATER SEWER  ¾” $75 $60 1” $100 $100 1.5” $250 $200 2” $500 $320 3” $1,000 $700 4” $1,800 $1,200 6” $3,750 $2,500 8” $5,400 $3,600 D. Residential Lessees. A security deposit of one-hundred-fifty dollars ($150.00) shall be required from each residential lessee customer for a single-family home. Upon discontinuation of service, the deposit shall be applied against amounts due, including any disconnection fees. E. Construction Meters. See Section 1.06 above. F. Other customers. A security deposit equal to two (2) months estimated average monthly water and sewer bill shall be required of all other customers including commercial and multi-unit accounts. G. Deposits. The District does not pay interest on deposits. The interest drawn by the District on customer deposits is returned into the operating budget of the water/sewer fund to help in providing the lowest possible water and sewer rates for our customers. Section 3.02. Billing Procedures. All accounts shall be billed in accordance with the following: Rate Order No. 2020-0316A Rate Order 11 of 17Town Council Page 77 of 282 Meeting Date: March 24, 2020 A. Due Date and Delinquency. Charges for water and sewer service shall be billed monthly. Payment shall be due on or before the twentieth (20 th) day of the month in the month in which the bill was received. Unless payment is received on or before the twentieth (20th) day of the month, such account shall be considered delinquent. If the due date falls on a holiday or weekend, the due date for payment purposes shall be the next working day after the due date. The District shall charge a penalty on past due accounts calculated at the rate of fifteen percent (15%) per month on water and sewer charges. The rates for water and sewer service shall depend upon the type of user and upon whether the water used has been chemically treated, as provided in this Rate Order. All accounts not paid by the due date shall be deemed delinquent and failure to make payment thereafter may result in the termination of water and sewer service. B. Notice and Appeal. Prior to termination of service, a customer who is delinquent in payment shall be sent a notice that service will be discontinued on or after the fifteenth (15th) day after the date of such notice unless payment in full is received before by such day disconnection is scheduled. Notice shall be sent by first class United States mail and shall inform the customer of the amount of the delinquent bill, the date service will be disconnected if payment is not made, and of the customer’s right to contest, explain, or correct the charges, services, or disconnection. Service shall not be disconnected where a customer has informed the District of his or her desire to contest or explain the bill. If the customer appears before the Board, the Board shall hear and consider the matter and inform the customer of the Board’s determination by sending written notice to the customer by first class United States mail stating whether or not service will be disconnected. In the event of a service is disconnected more than two (2) times per calendar year (January through December) for non-payment, an additional Security Deposit of $150.00 will be required for Residential homeowners and $150.00 for Lessees to restore service in addition to a $50.00 service fee, and afterhours re-connection charges if applicable, and any outstanding balance in Arrears will need to be brought current. As set out above in Section 3.01. If payment is not received prior to the date that disconnection has been scheduled, a service charge of $50.00 dollars will be added to the account. Reconnections made outside of the District’s normal business hours at the customer’s request will be charged at an additional after hour’s fee of one-hundred dollars ($100.00). C. Business Hours. For purposes of assessing the foregoing charges, “normal” or “regular” business hours shall mean only the hours between 8 a.m. and 5 p.m., Monday through Friday. All other times, including District holidays, are outside of the District’s normal business hours and will result in the higher charge. D. Returned Checks and Bank Drafts. A twenty-five-dollar ($25.00) charge will be charged to the customer’s account for any check or ACH bank draft returned by Rate Order No. 2020-0316A Rate Order 12 of 17Town Council Page 78 of 282 Meeting Date: March 24, 2020 the bank. Any amounts due on an account which have been paid with a check or ACH bank draft that has been returned by the bank must be paid in full by cash, cashier’s check or money order, including all late charges and returned check charges, within ten (10) days from the day the District mails notice to the customer or otherwise notifies the customer that the check or ACH bank draft has been returned by the bank. E. Same-Day Service. An additional charge of twenty-five dollars ($25.00) shall be made when a customer requests same-day service. As an example, this charge will be implemented upon request by a customer for same-day service to start or terminate water and sewer service or to perform re-reads the same day as requested. F. Accuracy Reading Fee. A meter accuracy reading fee in the amount of twenty-five dollars ($25.00) shall be charged to a customer by the District for each meter accuracy reading made by the District for such customer when the original reading appears to be accurate. If the original meter reading appears to be in error, no fee will be charged. Each customer will be allowed one accuracy meter reading per calendar year at no charge. **Should a customer request that a meter be removed, and bench tested by an outside source, then a fee of one-hundred-twenty- five dollars ($125.00) will be charged to the customer. If the meter fails to meet American Water Works Association standards for in-service meters, then the customer will be given a credit offsetting the amount of the charge. https://www.awwa.org/publications/journal-awwa/abstract/articleid/34055179.aspx G. Meter Data Logging Fee. Each customer will be allowed one data log at no- cost per fiscal year. A fee of twenty-five dollars ($25.00) shall be charged to a customer by the District for each meter data logging service performed thereafter. Meter data logging service can only be provided during regular business hours. Section 3.03. Entitlement. Water and sewer service shall be provided to customers in accordance with all TCEQ rules covering minimum water and sewer standards. Section 3.04. Unauthorized and Extraordinary Waste. The rates established herein are applicable for Domestic Waste as defined herein. Customers proposing to generate other types of waste will be assessed additional charges as established by the District. Section 3.05. Damage to District Facilities. A. Damage to Meter and Appurtenances. No person other than a duly authorized agent of the District shall tamper with or in any way interfere with a meter, meter box, service line or other water and/or sewer system appurtenance. The District reserves the right, immediately and without notice, to remove the meter or disconnect water service to any customer whose meter has been tampered with and to assess repair charges to the customer, plus a damage fee not to exceed five-thousand Rate Order No. 2020-0316A Rate Order 13 of 17Town Council Page 79 of 282 Meeting Date: March 24, 2020 dollars ($5,000.00), plus any applicable charge for same day service. The District also reserves the right to file civil and/or criminal charges against any person or entity tampering with the District’s public water system and/or sewer system. B. Repair. It is the responsibility of the customer to maintain and repair the water service line from the point of connection to the District’s water meter. The District reserves the right to repair any damage to the District’s System and appurtenances without prior notice and to assess against any customer such penalties as are provided by law and such penalties provided for in this Rate Order in addition to those charges necessary to repair the portion of the System so damaged. C. Video. If at any time a resident/customer wishes to have the District video their sewer line to help the resident determine the condition of their sewer line, the fee will be one- hundred-fifty dollars ($150.00) payable to the District assessed on the next month’s bill. Section 3.06. Easements. Before service is established to any customer, the person requesting such service shall grant an easement of ingress and egress to and from the meter(s) for such maintenance and repair as the District, in its judgment, may deem necessary. Section 3.07. Required Service. No service will be provided by the District unless the customer agrees to receive both water and sewer service, except that permanent irrigation only meters may receive water service only. Irrigation meters cannot be connected to any building plumbing. Section 3.08. Additional Charges. In all cases where services are performed, and equipment or supplies are furnished to a party or entity not within the District, the charge to said party or entity shall be the District’s cost of providing such services, equipment and/or supplies, plus fifteen percent (15%). This shall not apply to services, equipment and/or supplies furnished by the District under an existing Interlocal Agreement. ARTICLE IV INDUSTRIAL WASTE Section 4.01. Industrial Waste Policy. The following policy regarding industrial waste shall be effective: A. Definition. “Industrial waste” shall mean the water-borne solids, liquids, and/or gaseous wastes (including Cooling Water), resulting from any industrial, manufacturing, trade, business, commercial, or food processing operation or process, or from the development of any natural resource, or any mixture of such solids, liquids, or wastes with water or domestic sewage. The Clean Water Act of 1977, as amended, and the General Pretreatment Regulations contained in 40 C.F.R. 403 Rate Order No. 2020-0316A Rate Order 14 of 17Town Council Page 80 of 282 Meeting Date: March 24, 2020 contain the requirements for user’s discharge of industrial waste into wastewater facilities. B. Industrial Waste Discharge, Charges, and Rates. If any customer of the District’s sanitary sewer system proposes to discharge industrial waste into such system, the Board of Directors of the District shall request the recommendation of the District Engineer and shall establish rates and charges to provide for an equitable assessment of costs whereby such rates and charges for discharges of industrial waste correspond to the cost of waste treatment, taking into account the volume and strength of the industrial, domestic, commercial waste, and all other waste discharges treated and techniques of the treatment required. Such rates shall be an equitable system of cost recovery which is sufficient to produce revenues, in proportion to the percentage of industrial wastes proportionately relative to the total waste load to be treated by the District for the operation and maintenance of the treatment works, for the amortization of the District’s indebtedness for the cost as may be necessary to assure adequate waste treatment on a continuing basis. C. Pretreatment. The Board of Directors of the District shall rely upon the recommendation of the District Engineer and shall require pretreatment of any industrial waste that would otherwise be detrimental to the treatment works or to its proper and efficient operation and maintenance or will otherwise prevent the entry of such industrial waste into the treatment plant. ARTICLE V ENFORCEMENT/CIVIL PENALTIES Section 5.01. Enforcement. A. Civil Penalties. The Board hereby imposes the following civil penalties for breach of any rule of the District: The violator shall pay the District twice the costs the District has sustained due to the violation up to ten-thousand dollars ($10,000.00). A penalty under this Section is in addition to any other penalty provided by the laws of this State and may be enforced by complaints filed in the appropriate court of jurisdiction in the county in which the District’s principal office or meeting place is located. If the District prevails in any suit to enforce its rules, it may, in the same action, recover any reasonable fees for attorneys, expert witnesses, and other costs incurred by the District before the court. The court shall fix the amount of the attorneys’ fees. B. Liability for Costs. Any person violating any of the provisions of this Order and/or the rules and regulations governing water and sanitary sewer facilities, service lines, and connections shall become liable to the District for any expense, loss or Rate Order No. 2020-0316A Rate Order 15 of 17Town Council Page 81 of 282 Meeting Date: March 24, 2020 damage occasioned by the District by reason of such violation, and enforcement thereof shall be in accordance with Paragraph A of Section 5.01 of this Order. Section 5.02. Non-waiver. The failure on the part of the District to enforce any section, clause, sentence, or provision of this Order shall not constitute a waiver of the right of the District later to enforce any section, clause, sentence, or provision of this Order. Section 5.03. Appeal. Any determination by the District of any dispute regarding the terms and provisions of this order may be appealed to the Board of Directors of the District, which shall conduct a hearing on the matter. The District shall provide the customer with information regarding appeals and hearing procedures upon the customer’s request. ARTICLE VI MISCELLANEOUS Section 6.01. Amendments. The Board of the District has and specifically reserves the right to change, alter or amend any rate or provision of this Order at any time. Section 6.02. Severability. The provisions of this Order are severable, and if any provision or part of this Order or the application thereof to any person or circumstance shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Order and application of such provision or part of this Order shall not be affected thereby. ARTICLE VII REPEAL OF PREVIOUS ORDERS This Rate Order shall be known as the “2020-0316A Rate Order” (Order No. 2020-0316A) of the District. All previous Orders adopted by the Board of Directors pertaining to the subject matter hereof are each hereby repealed in their entirety as of the effective date hereof. ARTICLE VIII EFFECTIVE DATE This Order shall be effective on April 1, 2020. Rate Order No. 2020-0316A Rate Order 16 of 17Town Council Page 82 of 282 Meeting Date: March 24, 2020 ARTICLE IX PUBLIC MEETING Rate Order No . 2020-0316A Rate Order It is hereby found that the meeting at which this Order is adopted is open to the public as required by law, and that public notice of the time , place, and subject matter of said meeting and of the proposed adoption of this Order was given as required by law. D APPROVED this 16th day of March 2020. Gregory Wilson, President Board of Directors 17 of 17 Town Council Page 83 of 282 Meeting Date: March 24, 2020 TOWN OF TROPHY CLUB, TEXAS ORDINANCE NO. 2020-05 AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS, AMENDING SUBSECTIONS (F) MONTHLY RESIDENTIAL WASTEWATER FEES AND (G) MONTHLY COMMERCIAL WASTE WATER FEES, OF SECTION A1.014, WATER AND WASTEWATER FEES FOR PUBLIC IMPROVEMENT DISTRICT NO. 1, OF ARTICLE A1.000, GENERAL PROVISIONS, OF APPENDIX A, FEE SCHEDULE, OF THE TOWN OF TROPHY CLUB CODE OF ORDINANCES; PROVIDING FOR INCORPORATION OF PREMISES; PROVIDING FOR AMENDMENTS; PROVIDING FOR SAVINGS AND REPEALER; PROVIDING FOR SEVERABILITY; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; PROVIDING FOR A PENALTY NOT TO EXCEED THE SUM OF FIVE HUNDRED DOLLARS ($500.00) FOR EACH OFFENSE AND A SEPARATE OFFENSE SHALL BE DEEMED COMMITTED EACH DAY DURING OR ON WHICH A VIOLATION OCCURS OR CONTINUES; PROVIDING FOR PUBLICATION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, fees imposed by the Town are adopted via Ordinance and are codified in Appendix A of the Code of Ordinances of the Town; and WHEREAS, Appendix A, Article A1.000, Section A1.014 of the Town of Trophy Club Code of Ordinances contains fees for public works for the Trophy Club Public Improvement District No. 1 (hereinafter “PID”), including fees for meters utilized within the PID; and WHEREAS, the Town of Trophy Club (the “Town”) is the owner and/or operator of a water and sewer system designed to serve present and future inhabitants of the Trophy Club Public Improvement District No. 1 (the “Town System”); and WHEREAS, under the Amended and Restated Contract for Wholesale Water Supply and Wastewater Treatment Services and Water and Wastewater Operational Services between the Town and Trophy Club Municipal Utility District No. 1 dated July 25, 2017 (the “Contract”), the Trophy Club Municipal Utility District No. 1 (the “MUD”) has agreed to provide the Town with wholesale water and wastewater services and with operations services related to the Town System within the boundaries of the PID Property, as that term is defined in the Contract; and WHEREAS, Section 7.1(a) of the Contract requires that the MUD shall provide to Town any amended or revised MUD Rate Order adopted by MUD and Town shall adopt a Town Rate Order identical to the amended or revised MUD Rate Order. The Town shall adopt a Town Rate Order identical to the amended or revised MUD Rate Order provided that the Town has received receipt of the amended or revised MUD Rate Order at least 96 hours before a regularly scheduled Council meeting. In the event that Town Council Page 84 of 282 Meeting Date: March 24, 2020 ORD 2020-05 Page 2 of 5 the Town receives receipt of the amended or revised MUD Rate Order with less than 96 hours before a regularly scheduled Council meeting then the Town shall adopt a Town Rate Order identical to the amended or revised MUD Rate Order at the second regularly scheduled Council meeting after receiving receipt of the amended or revised MUD Rate Order; and WHEREAS, Sections 3.9 and 4.10 of the Contract require the Town to adopt retail water and wastewater service rules, regulations and policies at least as stringent as the provisions of amended or revised MUD service rules, regulations or policies (the “MUD Service Rules and Policies”) within sixty (60) days of Town’s receipt of the amended or revised MUD Service Rules and Policies; and WHEREAS, the Town received a revised MUD Rate Order, with revised MUD Service Rules and Policies, on March 18, 2020 with an effective date of April 1, 2020; and WHEREAS, the Town Council hereby finds that amending Subsections (f) and (g) of Section A1.014, Water and Wastewater Fees for PID No. 1, of Article A1.000, General Provisions, of Appendix A, Fee Schedule, of the Town of Trophy Club Code of Ordinances, as further specified herein, meets its contractual obligations pursuant to the Contract and serves the best interests of the Town. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: SECTION 1. INCORPORATION OF PREMISES That the above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. SECTION 2. AMENDMENTS 2.01 Subsections (f) and (g) of Section A1.014, Water and Wastewater Fees for PID No. 1, of Article A1.000, General Provisions, of Appendix A, Fee Schedule, of the Town of Trophy Club Code of Ordinances are hereby amended as follows and all other subsections not expressly mentioned hereafter shall remain the same: “APPENDIX A FEE SCHEDULE ARTICLE A1.000 GENERAL PROVISIONS . . . Section A1.014 Water and Wastewater Fees for Public Improvement District No. 1 . . . Town Council Page 85 of 282 Meeting Date: March 24, 2020 ORD 2020-05 Page 3 of 5 (f) Monthly residential (single-family homes) wastewater fees - effective April 1, 201920: . . . (3) A customer with a water leak during the averaging months may request a reduction in the sewer usage calculation. Any customer filling a pool after resurfacing, construction or major repairs during the averaging months may request that their winter average calculation be adjusted. Requests for a reduction in sewer usage calculations must be submitted in writing to the general manager and have documentation showing the construction or repairs as applicable to the issue. The general manager or a duly authorized representative may adjust the metered water usage in determining the winter average. To assist in establishing winter averaging sewer rates, customers are encouraged to submit requests for sewer average reductions no later than March 15th. (A) Base rate: $20.6022.15. (B) 0–4,000 gallons: $3.804.10/1,000 gallons. (C) 4,001–8,000 gallons: $5.405.85/1,000 gallons. (D) 8,001–12,000 gallons: $7.658.25/1,000 gallons. (E) >12,001 gallons: $10.9011.75/1,000 gallons. (g) Monthly commercial wastewater fees - effective April 1, 201920: (1) Base rate: $20.6022.15. (2) Volumetric rate: $6.376.94/1,000 gallons. SECTION 3. SAVINGS AND REPEALER That this Ordinance shall be cumulative of all other Ordinances of the Town affecting fees and shall not repeal any of the provisions of such Ordinances except in those instances where provisions of those Ordinances are in direct conflict with the provisions of this Ordinance; whether such Ordinances are codified or uncodified, and all other provisions of the Ordinances of the Town of Trophy Club, codified or uncodified, not in conflict with the provisions of this Ordinance, shall remain in full force and effect. Notwithstanding the foregoing, any complaint, action, cause of action or claim which prior to the effective date of this Ordinance has been initiated or has arisen under or pursuant to such repealed Ordinance(s) shall continue to be governed by the provisions of that Ordinance and for that purpose the Ordinance shall be deemed to remain and continue in full force and effect. Town Council Page 86 of 282 Meeting Date: March 24, 2020 ORD 2020-05 Page 4 of 5 SECTION 4. SEVERABILITY If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or application thereof to any person or circumstance, is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of the Ordinance, and the Town Council hereby declares it would have passed such remaining portions of the Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 5. ENGROSSMENT AND ENROLLMENT The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this Ordinance in accordance with the Town Charter. SECTION 6. PENALTY It shall be unlawful for any person to violate any provision of this Ordinance, and any person violating or failing to comply with any provision of this Ordinance shall be fined, upon conviction, not less than One Dollar ($1.00) nor more than Five Hundred Dollars ($500.00), and a separate offense shall be deemed committed upon each day during or on which a violation occurs or continues. SECTION 7. PUBLICATION The Town Secretary of the Town of Trophy Club is hereby directed to publish the Caption, Penalty and Effective Date of this Ordinance as required by Section 52.011 of the Texas Local Government Code. SECTION 8. EFFECTIVE DATE This Ordinance shall take effect on April 1, 2020 in accordance with law, and it is so ordained. Town Council Page 87 of 282 Meeting Date: March 24, 2020 ORD 2020-05 Page 5 of 5 PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this 24th day of March 2020. C. Nick Sanders, Mayor Town of Trophy Club, Texas [SEAL] ATTEST: Leticia Vacek, Town Secretary Town of Trophy Club, Texas APPROVED TO AS FORM: J. David Dodd III, Town Attorney Town of Trophy Club, Texas Town Council Page 88 of 282 Meeting Date: March 24, 2020 1 Trophy Wood Drive Trophy Club, Texas 76262Town of Trophy Club Legislation Details (With Text) File #: Version:12020-092-T Name: Status:Type:Agenda Item Regular Session File created:In control:2/25/2020 Town Council On agenda:Final action:3/24/2020 Title:Presentation of the NISD Bond Package (S. Norwood). Attachments: Action ByDate Action ResultVer. Presentation of the NISD Bond Package (S. Norwood). Town Council Page 89 of 282 Meeting Date: March 24, 2020 1 Trophy Wood Drive Trophy Club, Texas 76262Town of Trophy Club Legislation Details (With Text) File #: Version:12020-094-T Name: Status:Type:Agenda Item Public Hearing File created:In control:2/25/2020 Town Council On agenda:Final action:3/24/2020 Title:Consider and take appropriate action regarding the acceptance of the Audit for the Town of Trophy Club Fiscal Year 2019 (S. Norwood). Attachments:Audit Power Point Presentation - Trophy Club FY19.pdf FINAL - Town of Trophy Club 2019 CAFR.pdf Action ByDate Action ResultVer. Consider and take appropriate action regarding the acceptance of the Audit for the Town of Trophy Club Fiscal Year 2019 (S. Norwood). Town Council Page 90 of 282 Meeting Date: March 24, 2020 1 Trophy Club, Texas Audit Presentation Fiscal Year Ending September 30, 2019 Presented By: Louis Breedlove, Senior Audit Manager March 24, 2020 Town Council Page 91 of 282 Meeting Date: March 24, 2020 2 Audit Standards – The audit was performed in accordance with Generally Accepted Auditing Standards (GAAS) and Government Auditing Standards (GAS). OVERVIEW OF THE AUDIT PROCESS Town processes and controls are evaluated and examined as part of audit assessment procedures. We use a risk-based approach in which we identified potential areas of risk that could lead to material misstatement of the financial statements. Performed testing over the Town’s compliance with provisions with laws, regulations, contracts and grant agreements, including items such as compliance with Public Funds Investment Act (PFIA). Balances are agreed to underlying reports, and testing is performed to assure those balances are materially accurate. The results of testing procedures are evaluated. The report is prepared, in addition to the required letters of communication. Assessment Processes and controls are evaluated Risk-Based Approach Potential areas of risk are identified Compliance Testing Test compliance with laws and regulations Fieldwork Test accuracy of financial information Conclusion & Reporting Evaluation and communication of results Town Council Page 92 of 282 Meeting Date: March 24, 2020 3 COMPONENTS OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT  Letter of Transmittal Auditor’s Opinion (unmodified)  Management’s Discussion and Analysis  Basic Financial Statements  Government-Wide Statements  Fund Level Statements  Notes to the Financial Statements  Required Supplementary Information Statistical Section Certificate recipient Seven Years Consecutively Town Council Page 93 of 282 Meeting Date: March 24, 2020 4 DENISON 2019 COMPREHENSIVE ANNUAL FINANCIAL REPORT 9/30/19 9/30/18 Change Town-wide Cash & Investments $ 16,667,874 $ 17,686,328 -$ 1,018,454 Net Position Town-wide $ 64,662,451 $ 62,409,862 $ 2,252,589 Governmental Fund Balances $ 15,507,035 $ 16,893,251 -$ 1,386,216 Unassigned General Fund Balance / % General Fund expenditures $ 5,256,436 47% $ 4,937,683 47% $ 318,753 Unrestricted Net Position – Utility Fund $ 741,325 $ 633,294 $ 108,031 Utility Fund Net Operating Income $ 308,632 $ 486,800 -$ 178,168 Town-wide Outstanding Debt $ 50,792,526 $ 52,972,635 -$ 2,180,109 Bonds and Capital leases $ 25,532,526 $ 27,687,058 -$ 2,154,532 Special Assessment Bonds $ 25,260,000 $ 25,285,577 -$ 25,577 Financial Highlights Decrease is due to the use of prior year bond proceeds for capital expenditures in the current year. Special Assessment Bonds are fully covered by property assessment receivables related to the properties within the Trophy Club PID 1 area. (1) (1) (2) (1) (2) Town Council Page 94 of 282 Meeting Date: March 24, 2020 5 POLICY: It is the policy of the Town to achieve and maintain a minimum unassigned fund balance of 30% operating expenditures. Fiscal Ye ar 2019 – 47% General Fund Balance FY 2019 Budget resulted in a net positive $611,420 -Revenues exceeded budget by $640,514 -Expenditures exceeded budget by $29,094 Original Final Variance with Budget Budget Actual Final Budget Total Revenues 10,778,908$ 10,885,298$ 11,525,812$ 640,514$ Total Expenditures 11,100,073 11,176,983 11,206,077 (29,094) Revenues Over (Under) Expenditures (321,165) (291,685) 319,735 611,420 Total Other Financing Sources (Uses)63,000 63,000 63,000 - Net Change in Fund Balance (258,165)$ (228,685)$ 382,735$ 611,420$ Town Council Page 95 of 282 Meeting Date: March 24, 2020 6 Accounting for special assessments Special assessments are considered exchange-like transactions and are recognized on the accrual basis of accounting. The beginning net position was restated within governmental activities to correct the reporting of assessment receivables. GASB Statement 89, Accounting for Interest Cost Incurred before the End of a Construction Period Prior to the issuance of this Statement, governments capitalized interest cost in business-type activities and enterprise funds in accordance with GASB statement 62. GASB 89 is effective for reporting periods beginning after December 31, 2019, but earlier application is encouraged. Accounting Changes & GASB Implementations Town Council Page 96 of 282 Meeting Date: March 24, 2020 7 Communication Letters o Communication with Those Charged with Governance -Audit was conducted in compliance with all ethics requirements regarding independence -No difficulties were encountered in dealing with management -No uncorrected misstatements were identified o Communication Regarding Internal Controls -No deficiencies in internal controls, considered to be a material weakness, were identified. Town Council Page 97 of 282 Meeting Date: March 24, 2020 Questions? Contact Info: Louis Breedlove, Senior Audit Manager Phone 281.907.9188 | Fax 888.875.0587 14950 Heathrow Forest Pkwy | Ste 530 Houston, TX 77032 LBreedlove@BrooksWatsonCPA.com We know your questions don’t end when the audit does. We remain available throughout the year. Town Council Page 98 of 282 Meeting Date: March 24, 2020 COMPREHENSIVE ANNUAL FINANCIAL REPORT 2019CAFR Town Council Page 99 of 282 Meeting Date: March 24, 2020 Town Council Page 100 of 282 Meeting Date: March 24, 2020 COMPREHENSIVE ANNUAL FINANCIAL REPORT of the Town of Trophy Club, Texas For the Year Ended September 30, 2019 Prepared by Steve Norwood Town Manager Mike Erwin Finance Manager Town Council Page 101 of 282 Meeting Date: March 24, 2020 Town Council Page 102 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas TABLE OF CONTENTS September 30, 2019 INTRODUCTORY SECTION Pa ge Letter of Transmittal i GFO A Certificate of Achievement for Excellen ce in Fin an cial Reporting vi Organ izat ion al Chart vii List of Principal Officials viii FINANCIAL SECTIO N Indepen den t Audit or 's Report 1 Management's Disc ussion and Analysis 5 Basic Fin ancial Sta temen ts: Gove rnm en t-wide Fin an cial Stat ements Statemen t of Net Posit ion 18 Statemen t of Activities 22 Fund Finan cial Stat ements: Balan ce S heet - Governmental Funds 26 Rec onciliation of the Govern mental Fu nds Balan ce S heet to the S tatement of Net Position 29 Statemen t of Revenues, Expen ditures, and Changes in Fund Balan ces - Governm en tal Funds 30 35 Statemen t of Net Posit ion - Proprietar y Fun ds 36 Statemen t of Revenues, Expen ses, and Changes in Net Position - Proprietary Funds 37 Statemen t of Cash Flows - Proprietar y Funds 38 Not es to the Financial Stat ements 41 Requ ir ed Su pplemen ta ry In for ma tion: Schedule of Revenues, Expenditures, and Changes in Fund Balan ces - Budget (GAAP Basis) and Actual - Gen eral Fund 86 Schedule of Changes in Net Position Liab ility an d Relat ed Ratios - Tex as Municipal Retirem ent S yst em 88 Schedule of Em ployer Contributions to Pension Plan - Tex as Municipal Retirem ent S yst em 90 Schedule of Changes in Postem ployem en t Benefits Other Than Pension Liab ilit y an d Related Ratios Tex as Municipal Retirem ent S yst em 93 Schedule of Changes in Postem ployem en t Benefits Other Than Pension Liab ilit y an d Related Ratios Post Employm ent Healthcare System 94 Schedule of Revenues, Expendit ures, and Changes in Fund Balan ces - Budget (GAAP Basis) an d Ac tual - PID No. 1 95 Combin in g and Individu al Fu nd Financial Sta temen ts and Schedu les: Combining Balan ce S heet - Nonmajor Governmental Fun ds 98 100 Rec onciliation of the S tatem en t of Reven ues, Expenditures, an d Changes in Fun d Balan ces of Governmen tal Funds to the S tatement of Ac tivit ies Combining S tatem en t of Revenues, Expen dit ures and Changes in Fund Balan ces - Non major Governm ental Fun ds Town Council Page 103 of 282 Meeting Date: March 24, 2020 Town Council Page 104 of 282 Meeting Date: March 24, 2020 Schedule of Reven ues, Expenditures and Changes in Fun d Balan ce - Budget and Actual Court Tec hnology 102 Court S ecurity 103 Street M ain tenance 104 Hot el Occupancy Tax 105 Rec reat ion Programs 106 Debt S ervic e Fun d 107 Capital Proj ec ts Fund 108 Park Lan d Dedication 109 Combining S chedule of Net Posit ion Disc retely Presented Com ponent Units 111 Combining S chedule of Ac tivities Disc retely Presented Componen t Units 112 Balan ce S heet - Disc retely Presen ted Componen t Units 114 Recon ciliat ion of the Balan ce S heet to the S tatem ent of Net Position - Disc retely Presen ted Componen t Units 115 Stat ement of Revenues, Expenditures and Changes in Fun d Balan ces - Disc retely Presen ted Componen t Units 116 Recon ciliat ion of the S tatement of Reven ues, Expenditures and Changes in Fund Balan ces of the Disc retely Presented Componen t Units to the S tatement of Activities 117 STATISTICAL SECTIO N Fin an cial Trends: Net Position b y Compon ent 120 Changes in Net Position 122 Fund Balan ces of Governm ental Fu nds 126 Changes in Fund Balan ces of Governm ental Fu nds 128 Reven ue Capacity: Assessed Value an d Estim at ed Ac tual Value of Taxable Property 133 Direct and Overlapping Property Tax Rates 134 Principal Property Taxpayers 136 Property Tax Levies an d Collec tions 139 Debt Capacity: Ratios of Outstanding Debt by Type 140 Ratios of Gen eral Bonded Debt Outstandin g 142 Direct and Overlapping Governm en tal Ac tivit ies Debt 143 Demograp hic and Economic Inform at ion: Demograp hic and Econom ic S tatist ic s 145 Principal Em ployers 146 Operating Inform at ion: Full-Tim e Eq uivalen t City Gover nm en t Em ployees by Function 148 Operat in g Indicators by Function 150 Town Council Page 105 of 282 Meeting Date: March 24, 2020 Town Council Page 106 of 282 Meeting Date: March 24, 2020 INTRODUCTORY SECTION Town Council Page 107 of 282 Meeting Date: March 24, 2020 Town Council Page 108 of 282 Meeting Date: March 24, 2020 i March 17, 2020 Honorable Mayor, Members of the Town Council, And the Citizens of the Town of Trophy Club, Texas Town of Trophy Club 1 Trophy Wood Drive Trophy Club, TX 76262 Phone (682) 237-2900 Fax (682) 237-2996 The Town’s Finance Department has 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 Cl ub, Texas for the fiscal year ended September 30, 201 9 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, the ft, 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 prepared and audited by Brooks Watson & Co., PLLC, 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, 201 9. 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, 201 9, 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 immedi ately 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 109 of 282 Meeting Date: March 24, 2020 ii 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 12,369. 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 voluntary 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, streets, parks and recreation, planning and zoning, code enforcement, and drainage utilities. Water/wastewater is 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 Bureau of Labor Statistics indicate a Denton County unemployment rate of 2.6% while the national unemployment rate is 3.4% as of December 2019. Trophy Club has worked diligently to position itself for a significant future within DFW and the Alliance corridor. The Town has issued over 1,400 building permits for high end homes over the past 7 years, with 35 building permits for Fiscal Year 2019 and 10 to 20 permits anticipated for FY20. Additionally, the Town’s tax base exceeded $1.8 billion net taxable value in 2019. 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 In December of 2015, the Town refunded the Trophy Club Public Improvement District #1 (PID) bonds which will help residents of the PID realize over $16.4M in savings over the life of the debt. In June of 2017 the Town issued $4,445,000 in Certificates of Obligation Bonds for the purpose of streets reconstruction. Town Council Page 110 of 282 Meeting Date: March 24, 2020 iii Budgeting Process The Town of Trophy Club uses a program-based budgeting process. Each budgeting unit provides for the expenditures associated with services and supplies appropriated for in the prior year budget. Personnel expenditures are compiled by the Finance department. Any funding request that represents new expenditures and programs must be submitted as a separate supplemental request. Capital items are funded based on a replacement schedule, need, and available resources. 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 departmental budget to present to the Budget Team, which is comprised of the Town Manager, Assistant Town Manager, and Finance Manager. 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 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, 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 Each fund’s information, supplemental items, capital replacement data, and the five year capital improvement program are presented to the Council during every Council meeting from May until the budget is adopted. This approach allows the Council to discuss items and give direction prior to the proposed budget being submitted. 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). Town Council Page 111 of 282 Meeting Date: March 24, 2020 iv Public Hearing/Budget Adoption A public hearing on the proposed budget and two public hearings on the tax rate (if applicable) 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 from May through budget adoption. Budget adoption occurs in September after Town Council deliberations and the public hearing(s). 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. 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. In September 2016 the Town implemented revised purchasing and travel and training policies. 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 Town Council Page 112 of 282 Meeting Date: March 24, 2020 v goals. Management Team members utilize the strategic planning documents to help guide their budget planning and service/program implementation. Aw ards 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, 2018. This was the seventh 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. Acknowledgment is also given to representatives of BrooksWatson & Co., PLLC, 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, Steve Norwood Town Manager Mike Erwin Finance Manager Town Council Page 113 of 282 Meeting Date: March 24, 2020 Government Finance Officers Associati on Certificate of Achievement for Excellence in Financial Reporting Presented to Town of Trophy Club Texas For its Comprehensive Annu al Financial Report for the Fiscal Year E nd ed September 30, 2018 Executive Director/CEO vi Town Council Page 114 of 282 Meeting Date: March 24, 2020 Steve Norwood Town Manager MAYOR & TOWN COUNCIL TROPHY CLUB RESIDENTS David DoddTown AttorneyLeticia VacekTown Secretary Tony Jaramillo Director of Parks & Recreation Jill Lind Communications & Marketing Manager Tommy Uzee Director of Community Development Jack Taylor Fire Chief Patrick Arata Police Chief INTERNAL COMUNICATION PERMITTING CODE ENFORCEMENT BUILDING INSPECTIONS PLANNING EMERGENCY MEDICAL SERVICES EMERGENCY MANAGEMENT FIRE PREVENTION FIRE RECREATION COMMUNITY EVENTS LANDSCAPE MAINTENANCE PARKS ANIMAL CONTROL SCHOOL RESOURCE OFFICERS SCHOOL CROSSING GUARDS POLICE ORGANIZATIONAL CHART Wade CarrolAssistant Town Manager Mike Erwin Finance Manager PURCHASING COURT James Edwards HR Manager RECRUITMENT Mike Pastor IS Manager TECHNOLOGY SUPPORT EXTERNAL COMUNICATION RETENTION viiTown Council Page 115 of 282 Meeting Date: March 24, 2020 Nick Sanders Mayor Eric Jensen Mayor Pro Tem, Place 2 Michael Geraci Place 5 Philip Shoffner Place 6 Alicia Fleury Place 1 Sean Bone Place 3 Karl Monger Place 4 TOWN COUNCIL Honorable Eric Guido Ransleben Municipal Judge APPOINTED OFFICIALS Steve Norwood Town Manager David Dodd Town Attorney Leticia Vacek- Town Secretary Tony Jaramillo Director of Parks & Recreation MANAGEMENT TEAM Wade Carroll Assistant Town Manager Tommy Uzee Director of Community Development Jack Taylor Fire Chief Patrick Arata Police Chief KEY OFFICIALS viiiTown Council Page 116 of 282 Meeting Date: March 24, 2020 FINANCIAL SECTION Town Council Page 117 of 282 Meeting Date: March 24, 2020 Town Council Page 118 of 282 Meeting Date: March 24, 2020 1 14950 Heathrow Forest Pkwy | Suite 530 | Houston, TX 77032 | Tel: 281.907.8788 | Fax: 888.875.0587 | www.BrooksWatsonCPA.com INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor and Members of the Town Council Town of Trophy Club, Texas: 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 unit s,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, 2019, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents. These financial statements ar e the responsibility of the Town ’s management. Our responsibility is to express opinions on these financial statements based on our audit. Management’s Responsibility for the Financial Statements The Town’s 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 thes e financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial sta tements. 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 Town Council Page 119 of 282 Meeting Date: March 24, 2020 2 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 opinion. 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, 2019 and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 5.I. to the financial statements, the Town has restated beginning fund balance/net position within governmental activities and discretely presented component unit activities to correct various accounting errors and reclassification of a nonmajor governmental fund to a discretely presented component unit. Our opinion is not modified with respect to these matters. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedule of changes in net pension liability and related ratios, schedule of employer contributions to pension plan, schedule of changes in other postemployment benefits liability and related ratios, general fund budgetary comparison, and PID budgetary comparison information 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 ge nerally 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 Town Council Page 120 of 282 Meeting Date: March 24, 2020 3 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 of Trophy Club basic financial statements. The combining and budgetary comparison schedules for the other governmental funds are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplementary information noted above is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. 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 supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section and the 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. BrooksWatson & Co., PLLC Certified Public Accountants Houston, Texas March 17, 2020 Town Council Page 121 of 282 Meeting Date: March 24, 2020 4Town Council Page 122 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas MANAGEMENT’S DISCUSSION AND ANALYSIS September 30, 2019 5 As management of the Town of Trophy Club, Texas (the “Town”), we offer readers of the Town’s financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended September 30, 2019. 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-iv of this report. Financial Highlights The assets and deferred outflows of the Town exceeded its liabilities and deferred inflows (net position) at September 30, 2019 by $64,662,451. The Town's total net position increased by $2,252,589. The majority of the Town's net position is invested in capital assets or restricted for specific purposes. The Town's governmental funds reported combined ending fund balances of $15,507,035 at September 30, 2019, a decrease of $1,386,216 from the prior fiscal year; this includes an increase of $382,735 in the general fund, an increase of $43,576 in the debt service fund, a decrease of $2,196,347 in the capital projects fund, an increase of $89,963 in the PID No. 1 fund, and an increase of $293,857 in the nonmajor governmental funds. At the end of the fiscal year, unassigned fund balance for the general fund was $5,256,436 or 47%of total general fund expenditures. The Town’s net pension liability amounted to $2,782,644 as of September 30, 2019. Overview of the Financial Statements The discussion and analysis provided here are intended to serve as an introduction to the Town’s basic financial statements. The Town’s basic financial statements consist of three components:1) government-wide financial statements, 2) fund financial statements, and 3) the notes to financial statements. This report also includes supplementary information intended to furnish additional detail to support the basic financial statements themselves. Government-Wide Statements The government-wide financial statements are designed to provide readers with a broad overview of the Town’s finances, in a manner similar to a private-sector business.Two statements, the Statement of Net Position and the Statement of Activities, are utilized to provide this financial overview. The statement of net position presents information on all of the Town’s assets and liabilities. The difference between the two is reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating. Other non-financial factors, such as the Town’s property tax base and the condition of the Town’s infrastructure, need to be considered in order to assess the overall health of the Town.Town Council Page 123 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued September 30, 2019 6 The statement of activities presents information showing how the Town’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the Town that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Town include general government, police, emergency me dical services, community development, parks and recreation, streets, court, council and administration. Normally, these operations are financed by property taxes, sales taxes, and franchise fees.The business-type activities of the Town include Trophy Club Park and Storm Drainage Utility operations. The government-wide financial statements include not only the Town itself (known as the primary government), but also the legally separate component units, 4B Economic Development Corporation,the Tax Increment Reinvestment Zone #1, and the Crime Control and Prevention fund, which the Town is financially accountable. Financial information for these component units are reported separately from the financial information presented for the primary government itself. The government-wide financial statements can be found on pages 18-25 of this report. FUND FINANCIAL STATEMENTS A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town, like other state and local governments, uses fund accounting to ensure and de monstrate compliance with finance-related legal requirements. All of the funds of the Town can be divided into two categories: governmental funds and proprietary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in assessing a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of Town Council Page 124 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued September 30, 2019 7 revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Town maintains eleven individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, the debt service fund,the capital projects fund, and the PID, which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in a separate section of the report. The Town adopts an annual appropriated budget for its general, debt service,capital projects,PID, special revenue, Trophy Club Park, and Storm Drainage Utility funds. In addition, an annual appropriated budget is adopted for the Town’s discretely presented component units, 4B Economic Development Corporation, the Tax Increment Reinvestment Zone #1, and the Crime Control and Prevention fund.A budgetary comparison statement has been provided for each fund to demonstrate compliance with their respective budget. The basic governmental fund financial statements can be found on pages 26-33 of this report. Proprietary Funds The Town’s proprietary funds are all enterprise funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Town uses an enterprise fund to account for its Trophy Club Park and Storm Drainage operations. All activities associated with providing such services are accounted for in these funds, including salaries and benefits, supplies and materials, repairs and maintenance, utilities, and other operating expenses. The Town's intent is that costs of providing the services to the general public on a continuing basis is financed through user charges in a manner similar to a private enterprise. Proprietary financial statements provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for Trophy Club Park, and Storm Drainage Utility, both of which are considered to be major funds of the Town. The basic proprietary fund financial statements can be found on pages 34-37 of this report. Component Units The Town maintains the accounting and financial statements for three discretely presented component units. The 4B Economic Development Corporation, the Tax Increment Reinvestment Zone #1, and the Crime Control and Prevention fund are all discretely presented component units displayed on the government-wide financial statements. Town Council Page 125 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued September 30, 2019 8 Notes to Financial Statements The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 39-80 of this report. Other Information In addition to the basic financial statements, MD&A, and accompanying notes, this report also presents certain Required Supplementary Information (RSI). The required RSI includes a budgetary comparison schedule for the general fund, schedule of changes in the net pension liability and related ratios and schedule of employer contributions for the Texas Municipal Retirement System. RSI can be found after the basic financial statements. GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted previously, net position may serve over time as a useful indicator of the Town’s financial position. For the Town of Trophy Club, Texas, assets exceeded liabilities by $64,662,451 as of September 30, 2019,in the primary government. The largest portion of the Town’s net position, $53,701,441 reflects its investments in capital assets (e.g., land, buildings, water system, machinery and equipment, construction in progress),less any debt used to acquire those assets that are still outstanding. The Town uses these capital assets to provide services to citizens; consequently,these assets are not available for future spending. Although the Town’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the assets themselves cannot be used to liquidate these liabilities. An additional portion of the Town of Trophy Club, Texas’ net position of $6,112,682 represents resources that are subject to external restrictions on how they may be used. At the end of the current fiscal year, the Town of Trophy Club, Texas is able to report positive balances in all reported categories of net position for the primary government, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior fiscal year. Town Council Page 126 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued September 30, 2019 9 Statement of Net Position: The following table reflects the condensed Statement of Net Position: Cur rent and ot her assets $18,125,219 $754,874 $18,880,093 $17,667,572 $658,885 $18,326,457 Ca pit al assets, n et 71,314,642 1,824,936 73,139,578 70,276,072 1,878,406 72,154,478 Long-term r eceivables 24,371,503 - 24,371,503 25,260,000 - 25,260,000 Tota l As sets 113,811,364 2,579,810 116,391,174 113,203,644 2,537,291 115,740,935 4,387,577 - 4,387,577 3,718,236 - 3,718,236 Cur rent liab ilit ies 5,013,048 168,549 5,181,597 3,346,441 180,591 3,527,032 Long-term l iabilit ies 49,930,132 686,939 50,617,071 51,884,965 846,358 52,731,323 To ta l Lia bilitie s 54,943,180 855,488 55,798,668 55,231,406 1,026,949 56,258,355 317,632 - 317,632 790,954 - 790,954 Net Posit ion: Net inves tment in n et of r elated deb tcapital a ssets 52,718,444 982,997 53,701,441 51,825,867 877,048 52,702,915 Restrict ed 6,112,682 - 6,112,682 5,478,991 - 5,478,991 Unrestricted 4,107,003 741,325 4,848,328 3,594,662 633,294 4,227,956 Tota l Net Po sitio n $62,938,129 $1,724,322 $64,662,451 $60,899,520 $1,510,342 $62,409,862 Business-TypeGovernmental Activitie s 2019 2018 Gove rnmental Business-Type Activitie s Activitie sTotalActivities Total Deferred Inflo ws of Re source s Deferre d Outflo ws of Re source s Current and other assets of business-type activities were $754,874 and $658,885 as of September 30, 2019 and September 30, 2018, respectively. The increase of $95,989 or 15%was primarily attributable to increased cash on hand, resulting from the increase in current year net position. Current and other assets of governmental activities were $18,125,219 and $17,667,572 as of September 30, 2019 and September 30, 2018, respectively. The increase is primarily attributed to the increase in the current portion of assessments receivable in the current year. Current liabilities of governmental activities were $5,013,048 and $3,346,441 as of September 30, 2019 and September 30, 2018, respectively.The increase is primarily a result of greater outstanding payables to vendors and an increase in the current portion of debt obligations. Total long-term liabilities decreased by $1,954,833 or 4%due to principal payments made in the current year. Town Council Page 127 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued September 30, 2019 10 Statement of Activities: The following table provides a summary of the Town’s changes in net position: Revenues Program revenues: Charges for services $1,590,375 $539,295 $2,129,670 $1,816,239 $592,322 $2,408,561 Grants and contributions 3,019,160 3,360 3,022,520 443,752 94,521 538,273 General revenues: Property tax 8,974,426 - 8,974,426 8,412,231 - 8,412,231 Sales tax 1,271,864 - 1,271,864 1,150,073 - 1,150,073 Franchise and local taxes 911,738 - 911,738 867,446 - 867,446 Occupancy taxes 669,983 - 669,983 619,506 - 619,506 Special assessments 2,176,400 - 2,176,400 2,166,167 - 2,166,167 Investment income 512,922 11,818 524,740 259,220 7,258 266,478 Other revenues 235,107 - 235,107 197,567 - 197,567 Total Revenues 19,361,975 554,473 19,916,448 15,932,201 694,101 16,626,302 Expenses General government 3,650,893 - 3,650,893 3,398,500 - 3,398,500 Public safety 5,109,461 - 5,109,461 4,429,744 - 4,429,744 PID activities 26,875 - 26,875 2,850 - 2,850 Parks and recreation 2,871,283 - 2,871,283 2,644,329 - 2,644,329 Community development 717,215 - 717,215 695,637 - 695,637 Streets and infrastructure 2,371,290 - 2,371,290 1,671,692 - 1,671,692 Interest on long-term debt 2,663,286 - 2,663,286 2,771,762 - 2,771,762 Trophy Club Park - 122,186 122,186 - 93,677 93,677 Storm drainage - 131,370 131,370 - 129,722 129,722 Total Expenses 17,410,303 253,556 17,663,859 15,614,514 223,399 15,837,913 Change in Net Position Before Transfers 1,951,672 300,917 2,252,589 317,687 470,702 788,389 Transfers 86,937 (86,937) - 87,209 (87,209) - Total 86,937 (86,937)- 87,209 (87,209)- Change in Net Position 2,038,609 213,980 2,252,589 404,896 383,493 788,389 Beginning Net Position 60,899,520 1,510,342 62,409,862 60,494,624 1,126,849 61,621,473 Ending Net Position $62,938,129 $1,724,322 $64,662,451 $60,899,520 $1,510,342 $62,409,862 GovernmentActivitiesActivitiesGovernmentActivitiesActivities Governmental Business-Type Primary Governmental Business-Type Primary For the Year Ended September 30, 2019 For the Year Ended September 30, 2018 Total Total Town Council Page 128 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued September 30, 2019 11 Graphic presentations of selected data from the summary tables are displayed below to assist in the analysis of the Town’s activities. Governmental Activities – Revenues For the year ended September 30, 2019, revenues from governmental activities totaled $19,361,975. Property tax,grants and contributions, special assessments and sales tax are the Town’s largest general revenue sources. Overall revenue increased $3,429,774 or 22%from the prior year. Charges for services decreased by $225,864 or 12%due primarily to a reduction in building permits and court fines received compared to the prior year. Grants and contributions increased by $2,575,408 primarily due to nonrecurring contributed capital received from TXDOT in the current year. Sales and tax increased by $121,791 or 11%due to increase in local development. Occupancy taxes increased by $50,477 or 8%due to the Town experiencing increased tourism. Investment income increased by $253,702 or 98% primarily due to increased interest-bearing accounts. Other revenues increased by $37,540 or 19%, primarily as a result of increased cell tower lease income received in the current ye ar.All other revenues remained relatively stable when compared to the previous year. Town Council Page 129 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued September 30, 2019 12 This graph shows the governmental function expenses of the Town: Governmental Activities –Expenses For the year ended September 30, 2019, expenses for governmental activities totaled $17,410,303.This represents an increase of $1,795,789 or 12%from the prior year. The Town’s largest expense category is public safety, which totaled $5,109,461 at yearend. Public safety expenses increased by $679,717 or 15% primarily due to increased personnel costs for the fire and police departments.General government expenses increased by $252,393 or 7%primarily due to an increase in administrative salaries and benefits, local election expenses, and nonrecurring contingency expenses.Parks and recreation expenses increased by $226,954 or 9%primarily due to an increase in parks non-capital projects.Streets and infrastructure expenses increased $699,598 or 42%primarily due to additional noncapital repairs and maintenance costs in the current year. Town Council Page 130 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued September 30, 2019 13 Business-type activities are shown comparing operating costs to revenues generated by related services. For the year ended September 30, 2019, charges for services by business-type activities totaled $539,295. This is a de crease of $53,027 or 9%from the previous year.The decrease was primarily a result of declining Trophy Club Park revenues.In addition,there was a decrease of $91,161 in operating grants, which was a result of nonrecurring grants received in the prior year for improvements made after significant flooding. Total business-type activity expenses increased by $30,157 or 13%. The majority of the increase is attributed to added maintenance costs in Trophy Club park. FINANCIAL ANALYSIS OF THE TOWN’S FUNDS As noted earlier, fund accounting is used to demonstrate and ensure compliance with finance-related legal requirements. Governmental Funds - The focus of the Town’s governmental funds is to provide information of near- term inflows, outflows and balances of spendable resources. Such information is useful in assessing the Town’s financing requirements.In particular, unassigned fund balance may serve as a useful measure of the Town’s net resources available for spending at the end of the year. At Se ptember 30, 2019, the Town’s governmental funds reported combined fund balances of $15,507,035, a decrease of $1,386,216 in comparison with the prior year.Approximately 34%of this amount, $5,256,436,constitutes unassigned fund balance, which is available for spending at the government’s discretion.The remainder of the fund balance is either nonspendable, restricted or Town Council Page 131 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued September 30, 2019 14 committed to indicate that it is 1) not in spendable form $389,687 or 2) committed for particular purposes $180,158. As of the end of the year the general fund reflected a total fund balance of $5,823,253.General fund balance increased by $382,735 during the current year.This increase can be primarily attributed to greater than anticipated revenue. The debt service fund had an ending fund balance of $473,670 at September 30, 2019, an increase of $43,576 when compared to the previous year. The increase in the total fund balance was a result of transfers from other funds. During the year, the fund recorded total principal and interest payments of $2,283,851 and property tax revenue of $2,221,216. The capital projects fund had an ending fund of $3,568,072. The capital projects fund decreased $2,196,347 when compared to the previous year. The decrease was a result of current year capital outlay expenditures exceeding interest income. The PID No. 1 fund reflected an ending fund balance of $3,972,188.The fund balance increased $89,963, which is a result of property assessments and other revenues exceeding debt service expenditures. Proprietary Funds -The Town’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.Net position in the Town’s largest proprietary fund, the Storm Drainage Utility fund,totaled $1,635,805. Unrestricted net position at the close of the fiscal year for the Town’s utility funds amounted to $741,325, an increase of $108,031 over the previous year.Total investment in capital assets, net of related debt was $982,997,and capital assets,net of depreciation totaled $1,824,936. GENERAL FUND BUDGETARY HIGHLIGHTS There were various budget amendments approved during the year. Final budgeted revenue was $106,390 more than originally budgeted due to greater grant revenue. Total budgeted expenditures increased $76,910 compared to the original budget. Budget amendments were primarily due to salary and benefit increases.Total budgeted revenues of $10,885,298 were less than actual revenues of $11,525,812, resulting in a positive revenue variance of $640,514. The positive variance was primarily the result of greater than expected revenues from licenses and permits, franchise taxes, other revenues, and investment income. Total budgeted expenditures of $11,176,983 were less than actual expenditures of $11,206,077, resulting in a negative expenditure variance of $29,094.The variance in total expenditures was primarily due to negative variances within the manager’s office department and debt service principal and interest. Town Council Page 132 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued September 30, 2019 15 CAPITAL ASSETS As of the end of the year, the Town’s governmental activities funds had invested $71,314,642 in a variety of capital assets and water system infrastructure, net of accumulated depreciation. The Town’s business-type activities funds had invested $1,824,936 in a variety of capital assets and infrastructure, net of accumulated depreciation.This investment in capital assets includes land, buildings, vehicles, machinery and equipment, storm drainage system, and infrastructure. Major capital asset events during the current ye ar include the following: Contributed capital of $2,127,040 from TXDOT for sound retaining wall. Investments in Trophy Club Drive, Indian Creek and Phoenix Drive totaling $2,267,918. Harmony Playground improvements totaling $258,831. Purchase of new vehicles and equipment for the police and parks and recreations de partments totaling $170,052. More detailed information about the Town’s capital assets is presented in note 4.C to the financial statements. LONG-TERM DEBT The Town's outstanding general obligation bonds, certificate of obligation bonds, and special assessment bonds,net of all premiums and discounts decreased by $2,095,034 from the prior year. The total bonds payable at the close of the fiscal year was $50,704,321, net of all premiums and discounts. Of this amount, $21,267,000 (excluding unamortized premium/discount) comprises of bonded debt backed by the full faith and credit of the Town, and the remaining represents bonds secured solely by self- supporting activities. More detailed information about the Town’s long-term liabilities is presented in note 4.D to the financial statements. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES The Town is approximately 90%residential, and 10% commercial, with a retail development substantially built out.The Town issued fewer residential construction permits than in fiscal year 2019 and budgeted for 10 residential building permits for fiscal year 2020. Residential development decreased significantly beginning in fiscal year 2018 as the Town reached substantial residential build- out. The Town is expecting commercial development to be at complete build-out over the next five years. HG Supply Co. opened in 2019.PD-30 has started construction in fiscal year 2018 to include an Aloft Hotel, a large multi-family complex, a neighborhood of townhomes, and a large development of retail along SH114 and should be completed by end of FY22. Town Council Page 133 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued September 30, 2019 16 In fiscal year 2020, General Fund revenues are budgeted to increase 1.5% over fiscal year 2019 estimated revenues, while expenditures are budgeted to increase by 1.2% over fiscal year 2019 estimated expenditures. The fiscal year 2020 budget maintained the ad valorem tax rate to $0.446442 per hundred dollars of assessed value. CONTACTING THE TOWN’S FINANCIAL MANAGEMENT This financial report is designed to provide a general overview of the Town’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Town of Trophy Club Finance Director, 1 Tr ophy Wood 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 134 of 282 Meeting Date: March 24, 2020 BASIC FINANCIAL STATEMENTS 17Town Council Page 135 of 282 Meeting Date: March 24, 2020 Current assets: Cash and cash equivalents $12,395,632 $641,247 $13,036,879 Investments 3,630,869 - 3,630,869 Taxes receivable, net 453,203 - 453,203 Special assessments receivable - current 1,275,000 - 1,275,000 Receivables, net 224,573 35,605 260,178 Due from other governments 22,479 - 22,479 Due from component units 196,678 - 196,678 Internal balances (76,572) 76,572 - Prepaid and other assets 3,357 1,450 4,807 18,125,219 754,874 18,880,093 Noncurrent assets: Capital assets: Non-depreciable 13,290,431 - 13,290,431 Net depreciable capital assets 58,024,211 1,824,936 59,849,147 Advances to component unit 386,503 - 386,503 Special assessments receivable - noncurrent 23,985,000 - 23,985,000 Unamortized bond insurance - - - 95,686,145 1,824,936 97,511,081 113,811,364 2,579,810 116,391,174 Deferred Outflows of Resources Pension contributions 554,312 - 554,312 OPEB contributions 856 - 856 Pension investment earnings 886,093 - 886,093 Deferred charge on refunding 2,946,316 - 2,946,316 4,387,577 - 4,387,577 Total Current Assets Total Noncurrent Assets Total Deferred Outflows of Resources Assets Total Assets Total Town of Trophy Club, Texas STATEMENT OF NET POSITION (Page 1 of 2) September 30, 2019 Primary Government Business-TypeGovernmental Activities Activities 18Town Council Page 136 of 282 Meeting Date: March 24, 2020 $34,436 - - - 130,721 - - - - 165,157 2,538,765 359,783 - - 9,038 2,907,586 3,072,743 - - - - - Component Units 19Town Council Page 137 of 282 Meeting Date: March 24, 2020 Liabilities Current liabilities: Accounts payable 950,863 11,688 962,551 Accrued liabilities 478,489 - 478,489 Due to primary government - - - Accrued interest payable 227,734 1,861 229,595 Compensated absences - current 274,757 - 274,757 Long-term debt due within one year 3,081,205 155,000 3,236,205 5,013,048 168,549 5,181,597 Noncurrent liabilities: Long-term debt due in more than one year 46,869,382 686,939 47,556,321 Compensated absences - noncurrent 30,528 - 30,528 OPEB liability 247,578 - 247,578 Net pension liability 2,782,644 - 2,782,644 Advances from primary government - - - 49,930,132 686,939 50,617,071 54,943,180 855,488 55,798,668 Deferred Inflows of Resources OPEB (gains) losses 2,094 - 2,094 Pension (gains) losses 314,807 - 314,807 OPEB assumption changes 731 - 731 317,632 - 317,632 Net investment in capital assets 52,718,444 982,997 53,701,441 Restricted for: Municipal court 30,036 - 30,036 Debt service 473,670 - 473,670 Public safety 9,886 - 9,886 PID Activities 3,972,188 - 3,972,188 Street maintenance 92,457 - 92,457 Tourism 1,313,981 - 1,313,981 Parks 220,464 - 220,464 Unrestricted 4,107,003 741,325 4,848,328 $62,938,129 $1,724,322 $64,662,451 See Notes to Financial Statements. Total Noncurrent Liabilities Town of Trophy Club, Texas STATEMENT OF NET POSITION (Page 2 of 2) Total Total Current Liabilities Primary Government Total Net Position Total Deferred Inflows of Resources Business-Type Net Position Total Liabilities September 30, 2019 Governmental Activities Activities 20Town Council Page 138 of 282 Meeting Date: March 24, 2020 6,462 - 196,678 8,402 - 105,000 316,542 2,153,791 - - - 386,503 2,540,294 2,856,836 - - - - 639,757 - - 130,509 - - - - (554,359) $215,907 Units Component 21Town Council Page 139 of 282 Meeting Date: March 24, 2020 Primary Government Governmental Activities General government $451,782 $499,302 $167,787 $- PID Activities 26,875 - - - Emergency medical services 1,141,600 766,372 - - Manager's office 1,142,961 - - - Human resources 427,521 - - Finance 526,829 - - - Information services 654,884 - - - Legal 127,898 - - - Court 75,744 324,701 - - Police 2,574,841 - - - Fire 1,317,276 - 724,333 - Facilities management 319,018 - - - Parks 2,871,283 - - - Community development 575,759 - - - Tourism 141,456 - - - Streets and infrastructure 2,371,290 - - 2,127,040 Interest on long-term debt 2,663,286 - - - 17,410,303 1,590,375 892,120 2,127,040 Business-Type Activities Trophy Club Park 122,186 99,351 3,360 - Storm drainage utility 131,370 439,944 - - 253,556 539,295 3,360 - $17,663,859 $2,129,670 $895,480 2,127,040 See Notes to Financial Statements. Town of Trophy Club, Texas STATEMENT OF ACTIVITIES (Page 1 of 2) For the Year Ended September 30, 2019 Contributions Program Revenues Grants and Operating Capital Contributions Charges for Grants and Total Governmental Activities Functions/Programs Services Total Business-Type Activities Total Primary Government Expenses 22Town Council Page 140 of 282 Meeting Date: March 24, 2020 $215,307 $- $215,307 $- (26,875) - (26,875) - (375,228) - (375,228) - (1,142,961) - (1,142,961) - (427,521) - (427,521) - (526,829) - (526,829) - (654,884) - (654,884) - (127,898) - (127,898) - 248,957 - 248,957 - (2,574,841) - (2,574,841) - (592,943) - (592,943) - (319,018) - (319,018) - (2,871,283) - (2,871,283) - (575,759) - (575,759) - (141,456) - (141,456) - (244,250) - (244,250) - (2,663,286) - (2,663,286) - (12,800,768) - (12,800,768) - - (19,475) (19,475) - - 308,574 308,574 - - 289,099 289,099 - (12,800,768) 289,099 (12,511,669) - Business-Type Activities Governmental Activities Net (Expense) Revenue and Changes in Net Position Primary Government Total Component Units 23Town Council Page 141 of 282 Meeting Date: March 24, 2020 Component Units 4B Economic Development Corporation 816,011 - - - Tax Increment Reinvestment Zone #1 10,357 - - - Crime Control and Prevention 191,426 - - - $1,017,794 $- $- $- General Revenues: Taxes Property taxes Sales and mixed beverage taxes Franchise and local taxes Occupancy tax Special assessments Other revenues Investment income Transfers Total General Revenues and Transfers Change in Net Position Beginning Net Position Ending Net Position See Notes to Financial Statements. Grants and Operating Capital Expenses Services Contributions Contributions Charges for Total Component Units Town of Trophy Club, Texas STATEMENT OF ACTIVITIES (Page 2 of 2) For the Year Ended September 30, 2019 Program Revenues Grants and 24Town Council Page 142 of 282 Meeting Date: March 24, 2020 (816,011) (10,357) (191,426) (1,017,794) 8,974,426 - 8,974,426 74,939 1,271,864 - 1,271,864 746,899 911,738 - 911,738 - 669,983 - 669,983 - 2,176,400 - 2,176,400 - 235,107 - 235,107 - 512,922 11,818 524,740 5,454 86,937 (86,937) - - 14,839,377 (75,119) 14,764,258 827,292 2,038,609 213,980 2,252,589 (190,502) 60,899,520 1,510,342 62,409,862 406,409 $62,938,129 $1,724,322 $64,662,451 $215,907 Component UnitsActivitiesActivitiesTotal Governmental Business-Type Net (Expense) Revenue and Changes in Net Position Primary Government 25Town Council Page 143 of 282 Meeting Date: March 24, 2020 Cash and cash equivalents $3,563,348 $17,575 $3,675,385 $3,972,188 Investments 2,031,793 - 1,599,076 - Taxes receivable, net 314,992 21,929 - - Special assessments receivable - - - 25,260,000 Accounts receivable, net 224,573 - - - Due from other governments 22,479 - - - Due from other funds 273,096 455,509 - - Prepaid and other assets 3,184 - 173 - Due from component units 196,678 - - - Advances to component units 386,503 - - - $7,016,646 $495,013 $5,274,634 $29,232,188 Liabilities Accounts payable $435,912 $- $511,121 $- Accrued liabilities 478,489 - - - Due to other funds - - 1,195,441 - 914,401 - 1,706,562 - Deferred Inflows of Resources Unavailable revenue - property taxes 71,994 21,343 - - Unavailable revenue - fines and forfeitures 29,461 - - - Unavailable revenue - emergency medical services 152,220 - - - Unavailable revenue - special assessments - - - 25,260,000 Unavailable revenue - property liens 25,317 - - - Total Deferred Inflows of Resources 278,992 21,343 - 25,260,000 Nonspendable: Prepaid items 3,184 - - - Advances to component unit 386,503 - - - Restricted for: Debt service - 473,670 - - Municipal court - - - - Public safety - - - - Street maintenance - - - - Tourism - - - - Parks - - - - Capital projects - - 3,568,072 - PID Activities - - - 3,972,188 Committed for: Police 177,130 - - - Recreation programs - - - - Unassigned 5,256,436 - - - 5,823,253 473,670 3,568,072 3,972,188 $7,016,646 $495,013 $5,274,634 $29,232,188 Town of Trophy Club, Texas BALANCE SHEET GOVERNMENTAL FUNDS September 30, 2019 Service Projects Total Liabilities, Deferred Inflows of Resources, and Fund Balances Total Fund Balances Assets General Debt Capital Fund Balances See Notes to Financial Statements. Total Liabilities Total Assets PID No. 1 26Town Council Page 144 of 282 Meeting Date: March 24, 2020 $1,167,136 $12,395,632 - 3,630,869 116,282 453,203 - 25,260,000 - 224,573 - 22,479 649,095 1,377,700 - 3,357 - 196,678 - 386,503 $1,932,513 $43,950,994 $3,830 $950,863 - 478,489 258,831 1,454,272 262,661 2,883,624 - 93,337 - 29,461 - 152,220 - 25,260,000 - 25,317 - 25,560,335 - 3,184 - 386,503 - 473,670 30,036 30,036 9,886 9,886 92,457 92,457 1,313,981 1,313,981 220,464 220,464 - 3,568,072 - 3,972,188 - 177,130 3,028 3,028 - 5,256,436 1,669,852 15,507,035 $1,932,513 $43,950,994 Governmental Funds Total Governmental Funds Nonmajor 27Town Council Page 145 of 282 Meeting Date: March 24, 2020 28Town Council Page 146 of 282 Meeting Date: March 24, 2020 Fund Balances - Total Governmental Funds $15,507,035 Adjustments for the Statement of Net Position: Capital assets used in governmental activities are not current financial resources and, therefore, not reported in the governmental funds. Capital assets - non-depreciable 13,290,431 Capital assets - net depreciable 58,024,211 Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the governmental funds.25,560,335 Deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenues) until that time Pension (gains) losses (314,807) OPEB (gains) losses (2,094) OPEB changes in assumptions (731) Deferred outflows of resources, represent a consumption of net position that applies to a future period(s) and is not recognized as an outflow of resources (expense/ expenditures) until then Pension contributions 554,312 OPEB contributions 856 Pension investment earnings 886,093 Some liabilities, including bonds payable and deferred charges, are not reported as liabilities in the governmental funds. Accrued interest (227,734) Deferred charges on bond refunding 2,946,316 Bond premium (4,160,382) Net pension liability (2,782,644) OPEB liability (247,578) Compensated absences (305,285) Non-current liabilities due in one year (3,081,205) Non-current liabilities due in more than one year (42,709,000) Net Position of Governmental Activities $62,938,129 September 30, 2019 GOVERNMENTAL FUNDS RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION Town of Trophy Club, Texas 29Town Council Page 147 of 282 Meeting Date: March 24, 2020 Revenues Property tax $6,746,579 $2,221,216 $- Sales and mixed beverage taxes 1,023,120 - - Franchise and local taxes 911,738 - - Occupancy tax - - - Special assessments - - - License and permits 499,302 - - Intergovernmental 674,452 49,881 - Charges for services 764,282 - - Fines and forfeitures 307,977 - - Investment income 206,601 29,393 149,562 Other revenue 391,761 - - 11,525,812 2,300,490 149,562 Expenditures Current: General government - - 6,623 PID activities - - - Emergency medical services 1,117,273 - - Manager's office 1,161,520 - - Human resources 428,739 - - Finance 526,601 - - Information services 623,819 - - Legal 127,898 - - Court 66,879 - - Police 2,483,871 - - Fire 1,303,324 - - Facilities management 319,018 - - Parks 2,196,541 - Community development 568,239 - - Tourism - - - Streets 191,463 - - Debt Service: Principal 85,075 1,613,000 - Interest and fiscal charges 5,817 664,951 - Administrative charges - 5,900 - Capital outlay - - 2,339,286 11,206,077 2,283,851 2,345,909 319,735 16,639 (2,196,347) Total Revenues Town of Trophy Club, Texas STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS (Page 1 of 2) For the Year Ended September 30, 2019 Capital Total Expenditures Over (Under) Expenditures Excess (Deficiency) of Revenues Service Debt General Projects 30Town Council Page 148 of 282 Meeting Date: March 24, 2020 $- $- $8,967,795 - 248,744 1,271,864 - - 911,738 - 669,983 669,983 2,176,400 - 2,176,400 - - 499,302 - - 724,333 - 5,680 769,962 - 4,290 312,267 101,011 26,355 512,922 - 11,133 402,894 2,277,411 966,185 17,219,460 - - 6,623 26,875 - 26,875 - - 1,117,273 - - 1,161,520 - - 428,739 - - 526,601 - - 623,819 - - 127,898 - 8,409 75,288 - - 2,483,871 - - 1,303,324 - - 319,018 - 6,307 2,202,848 - - 568,239 - 141,261 141,261 - 223,475 414,938 25,577 - 1,723,652 2,134,996 - 2,805,764 - - 5,900 - 289,876 2,629,162 2,187,448 669,328 18,692,613 89,963 296,857 (1,473,153) Nonmajor Total Governmental PID No. 1 Funds Governmental Funds 31Town Council Page 149 of 282 Meeting Date: March 24, 2020 Other Financing Sources (Uses) Transfers in 63,000 26,937 - Transfers (out)- - - 63,000 26,937 - 382,735 43,576 (2,196,347) Beginning fund balances 5,440,518 430,094 5,764,419 $5,823,253 $473,670 $3,568,072 See Notes to Financial Statements. Ending Fund Balances Total Other Financing Sources (Uses) Net Change in Fund Balances Town of Trophy Club, Texas STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS (Page 2 of 2) For the Year Ended September 30, 2019 General Service Projects Debt Capital 32Town Council Page 150 of 282 Meeting Date: March 24, 2020 - - 89,937 - (3,000) (3,000) - (3,000) 86,937 89,963 293,857 (1,386,216) 3,882,225 1,375,995 16,893,251 $3,972,188 $1,669,852 $15,507,035 Governmental PID No. 1 Funds Funds Nonmajor Total Governmental 33Town Council Page 151 of 282 Meeting Date: March 24, 2020 34Town Council Page 152 of 282 Meeting Date: March 24, 2020 Amounts reported for governmental activities in the statement of activities are different because: Net changes in fund balances - total governmental funds $(1,386,216) 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. Capital outlay 2,860,040 Depreciation expense (3,356,339) Capital contributions 2,127,040 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds.15,475 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Compensated absences (20,758) Accrued interest 57,349 Pension expense (47,467) OPEB expense (25,196) The issuance of long-term debt (e.g., bonds, leases, certificates of obligation) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when they are first issued; whereas, these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. Amortization of deferred loss on refunding (206,009) Amortization of premium 297,038 Principal payments 1,723,652 $2,038,609 See Notes to Financial Statements. Change in Net Position of Governmental Activities For the Year Ended September 30, 2019 Town of Trophy Club, Texas RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 35Town Council Page 153 of 282 Meeting Date: March 24, 2020 Current Assets Cash and cash equivalents $6,225 $635,022 $641,247 Receivables - 35,605 35,605 Due from other funds 76,572 - 76,572 Prepaid items 1,450 - 1,450 84,247 670,627 754,874 Noncurrent Assets Capital assets: Net depreciable capital assets 12,731 1,812,205 1,824,936 12,731 1,812,205 1,824,936 96,978 2,482,832 2,579,810 Current Liabilities Accounts payable $8,461 $3,227 $11,688 Accrued interest - 1,861 1,861 Long-term debt due within one year - 155,000 155,000 8,461 160,088 168,549 Noncurrent Liabilities Long-term debt due in more than one year - 686,939 686,939 8,461 847,027 855,488 Net investment in capital assets 12,731 970,266 982,997 Unrestricted 75,786 665,539 741,325 $88,517 $1,635,805 $1,724,322 See Notes to Financial Statements. September 30, 2019 Total Noncurrent Assets Total Assets Total Net Position Net Position Liabilities Total Liabilities Town of Trophy Club, Texas Park Total Total Current Liabilities Assets Total Current Assets Utility Storm DrainageTrophy Club STATEMENT OF NET POSITION PROPRIETARY FUNDS 36Town Council Page 154 of 282 Meeting Date: March 24, 2020 Operating Revenues Charges for services $99,351 $439,944 $539,295 Intergovernmental revenues 3,360 - 3,360 102,711 439,944 542,655 Operating Expenses Salaries and benefits 38,873 - 38,873 Supplies and materials 11,836 - 11,836 Repairs and maintenance 22,827 - 22,827 Utilities 6,614 5,200 11,814 Other operating expenses 39,649 55,554 95,203 Depreciation 2,387 51,083 53,470 122,186 111,837 234,023 (19,475) 328,107 308,632 Nonoperating Revenues (Expenses) Investment income - 11,818 11,818 Interest and fiscal expense - (19,533) (19,533) - (7,715)(7,715) (19,475) 320,392 300,917 Transfers Transfers (out)(20,000) (66,937) (86,937) Total Transfers (20,000) (66,937) (86,937) (39,475) 253,455 213,980 Beginning net position 127,992 1,382,350 1,510,342 $88,517 $1,635,805 $1,724,322 See Notes to Financial Statements. Ending Net Position Total Operating Revenues Total Operating Expenses Change in Net Position Operating Income (Loss) Town of Trophy Club, Texas Trophy Club Total Nonoperating Revenues (Expenses) Income Before Transfers Park Storm Drainage Utility STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For the Year Ended September 30, 2019 Total 37Town Council Page 155 of 282 Meeting Date: March 24, 2020 Cash Flows from Operating Activities Payments to employees $(38,873) $- $(38,873) Payments to suppliers (166,305) (65,381) (231,686) Receipts from customers 102,711 438,599 541,310 (102,467) 373,218 270,751 Cash Flows from Noncapital Financing Activities Transfers (out)(20,000) (66,937) (86,937) (20,000) (66,937) (86,937) Cash Flows from Capital and Related Financing Activities Interest paid on capital debt - (24,277) (24,277) Principal paid on capital debt - (155,000) (155,000) - (179,277) (179,277) Cash Flows from Investing Activities Interest on investments - 11,818 11,818 - 11,818 11,818 (122,467) 138,822 16,355 Beginning cash and cash equivalents 128,692 496,200 624,892 $6,225 $635,022 $641,247 See Notes to Financial Statements. Town of Trophy Club, Texas STATEMENT OF CASH FLOWS PROPRIETARY FUNDS (Page 1 of 2) For the Year Ended September 30, 2019 Trophy Club Storm Drainage Net Cash Provided (Used) by Operating Activities Park Total Ending Cash and Cash Equivalents Net Cash Provided by Investing Activities Utility Net Cash Provided (Used) by Noncapital Financing Activities Net Cash Provided (Used) by Capital and Related Financing Activities Net Increase (Decrease) in Cash and Cash Equivalents 38Town Council Page 156 of 282 Meeting Date: March 24, 2020 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating Income (Loss)$(19,475) $328,107 $308,632 Adjustments to reconcile operating income (loss) to net cash provided (used): Depreciation 2,387 51,083 53,470 Changes in Operating Assets and Liabilities: (Increase) Decrease in: Accounts receivable - (1,345) (1,345) Prepaid (875) - (875) Increase (Decrease) in: Accounts payable (7,090) (4,627) (11,717) Due to other funds (842) - (842) Due from other funds (76,572) - (76,572) $(102,467) $373,218 $270,751 See Notes to Financial Statements. For the Year Ended September 30, 2019 Town of Trophy Club, Texas STATEMENT OF CASH FLOWS PROPRIETARY FUNDS (Page 2 of 2) Net Cash Provided (Used) by Operating Activities Total Storm Drainage UtilityPark Trophy Club 39Town Council Page 157 of 282 Meeting Date: March 24, 2020 40Town Council Page 158 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS September 30, 2019 41 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. A.Description of Government-Wide Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. All fiduciary activities are reported only in the fund financial statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external customers for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. 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. Town Council Page 159 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 42 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. 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. Discretely Presented Component Units 4B Economic Development Corporation 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 4B does not provide services entirely, or almost entirely to the Town, nor does it maintain debt of any type that are repaid using Town resources. Accordingly, the 4B has been reported as a discretely presented component unit. The 4B corporation is supported by a half-cent sales tax. The scope of public service of the 4B benefits citizens and is operated within the geographic boundaries of the Town. Tax Increment Reinvestment Zone #1 The Tax Increment Reinvestment Zone #1 (“TIRZ”) serves all citizens of the Town and is governed by a board appointed by the Town’s elected council. The TIRZ does not provide services entirely, or almost entirely to the Town, nor does it maintain debt of any type that are repaid using Town resources. Accordingly, the TIRZ has been reported as a discretely presented component unit. The scope of public service of the TIRZ benefits citizens and is operated within the geographic boundaries of the Town. Town Council Page 160 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 43 Crime Control and Prevention District The Crime Control and Prevention District (“CCPD”) was formed under Chapter 363 of the Texas Local Government Code, the Crime Control and Prevention Act. The CCPD is organized exclusively to act on behalf of the Town to finance crime control within the Town. The CCPD is governed by a seven-member board appointed by the Town Council. The annual budget and issuance of de bt must be approved by the Town Council. Since the CCPD does not provide services entirely, or almost entirely to the Town, nor does it maintain debt of any type that are repaid using Town resources, it has been reported as a blended component unit. Separate financial statements for the individual component units are not prepared. C. Basis of Presentation -Government-Wide and Fund Financial Statements While separate government-wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds while business-type activities incorporate data from the government’s enterprise funds. Separate financial statements are provided for governmental funds and the proprietary funds. As discussed earlier, the government has three discretely presented component units which are shown in separate columns in the government-wide financial statements. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments where the amounts are reasonably equivalent in value to the interfund services provided and other charges between the various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. The fund financial statements provide information about the government’s funds, including its blended component units. Separate statements for each fund category; governmental and proprietary are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements. Town Council Page 161 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 44 Governmental Funds Governmental funds are those funds through which most governmental functions are typically financed.The government reports the following major governmental funds: General Fund The General Fund is the main operating fund of the Town. This fund is used to account for all financial resources not accounted for in other funds. All general tax revenues and other receipts that are not restricted by law or contractual agreement to some other 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 Se rvice 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 De bt Service Fund is restricted to signify the amounts that are restricted exclusively for debt service expenditures. Capital Projects Fund The Capital Projects Fund is used to account for funds received and expended for acquisition and construction of infrastructure and other capital assets. Public Improvement District (PID) No. 1 This fund accounts for bond proceeds, assessments and related debt associated with the issuance of bonds issued by the Town for the Public Improvement District. Proprietary Fund Types Proprietary funds are used to account for activities that are similar to those often found in the private sector. All assets, liabilities, equities, revenues, expenses, and transfers relating to the government’s business activities are accounted for through proprietary funds. The measurement focus is on de termination of net income, financial position, and cash flows. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues include charges for services. Operating expenses include costs of materials, contracts, personnel, and de preciation. All revenues and expenses not meeting this definition are reported as non- operating revenues and expenses. Proprietary fund types follow GAAP prescribed by the Governmental Accounting Standards Board (GASB) and all Financial Accounting Standards Board’s standards issued prior to November 30, 1989. Subsequent to this date, the Town Town Council Page 162 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 45 accounts for its enterprise funds as presented by GASB. The proprietary fund types used by the Town include enterprise funds. The government reports the following major proprietary funds: Trophy Club Park Fund The Trophy Club park fund is utilized to account for funds received and expended for the maintenance of park land. Storm Drainage Utility Fund The storm drainage fund accounts for the storm drainage utility fee designated for the maintenance of the Town's storm drainage system. Additionally, the Town reports for the following Non-major governmental funds: Hotel Occupancy Tax Fund This fund is used to account for local hotel and motel occupancy tax receipts, as well as expenses (events). Street Maintenance Sales Tax Fund Accounts for sales taxes specifically restricted for street improvements. Court Technology Fund Accounts for court fees specifically restricted for court technology expenses. Court Security Fund Accounts for court fees specifically restricted for court security expenses. Recreation Programs Fund Accounts for revenues and expenditures associated with recreational programs. Grant Fund This fund is used to account for grant monies received by and expended by the Town. Town Council Page 163 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 46 Park Land Dedication Fund This fund is used to account for park revenues received by and expended by the Town. D. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources. Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). Expenditure- driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). All other revenue items are considered to be measurable and available only when cash is received by the government. Town Council Page 164 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 47 Proprietary, pension and other postemployment benefit trust funds are reported using the economic resources measurement focus and the accrual basis of accounting. Agency funds have no measurement focus but utilize the accrual basis of accounting for reporting its assets and liabilities. E. Assets, Liabilities, Deferred Outflows/Inflows, and Fund Equity or Net Position 1.Deposits and Investments The Town’s cash and cash equivalents includes cash on hand, de mand 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 Te xPool and Texas Class, these investments are considered to be cash equivalents. State statutes authorize the Town to invest in (1) obligations of the United States or its agencies and instrumentalities; (2) direct obligations of the State of Texas or its agencies; (3) other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the State of Texas or the United States; (4) obligations of states, agencies, counties, cities, and other political subdivisions of any state having been rated as to investment quality by a nationally recognized investment rating firm and having received a rating of not less than A or its equivalent; (5) certificates of deposit by state and national banks domiciled in this state that are (A) guaranteed or insured by the Federal Deposit Insurance Corporation, or its successor; or, (B) secured by obligations that are described by (1) –(4); or, (6) fully collateralized direct repurchase agreements having a defined termination date, secured by obligations described by (1), pledged with third party selected or approved by the Town, and placed through a primary government securities dealer. The Town’s investments are governed by the same state statutes. All investments are recorded at fair value based on quoted market prices. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties. 2.Fair Value The Town has applied Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application. GASB Statement No. 72 provides guidance for determining a fair value me asurement for reporting purposes and applying fair value to certain investments and disclosures related to all fair value measurements. 3.Receivables and Interfund Transactions Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the year are referred to as either “interfund receivables/payables” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current Town Council Page 165 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 48 portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds” in the fund financial statements. If the transactions are between the primary government and its component unit, these receivables and payables are classified as “due to/from component unit/primary government.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds are offset by a nonspendable fund balance account in the applicable governmental fund to indicate they are not available for appropriation and are not expendable available financial resources. All trade receivables are shown net of any allowance for uncollectible amounts. 4. Inventories and Prepaid Items The costs of governmental fund type inventories are recorded as expenditures when the related liability is incurred, (i.e., the purchase method). The inventory is carried at historical cost using the first-in/first-out method. Certain payments to vendors reflect costs applicable to future accounting periods (prepaid expenditures) are recognized as expenditures when utilized. 5.Restricted Assets Certain proceeds of governmental and enterprise fund cash and investments are classified as restricted assets on the statement of net position because their use is limited by applicable bond covenants, legal restrictions, or restrictions in place by outside parties. 6.Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business- type activities columns in the government-wide financial statements. Capital assets are defined by the government, as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession are recorded at acquisition value on the date of donation. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest costs incurred in connection with construction of enterprise fund capital assets are capitalized when the effects of capitalization materially impact the financial statements. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. Town Council Page 166 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 49 Property, plant, and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful years. Buildings 30 Years Improvements other than buildings 10-30 Years Improvements other than buildings (streets)30 Years Machinery and equipment 7-15 Years Vehicles 5-10 Years Water system 25 Years Infrastructure (storm drainage system)40 Years 7. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows / inflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The government only has three items that qualify for reporting in this category. One example is the deferred charge on refunding reported in the government-wide statement of net position. A deferred charge on refunding results form the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has only one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes, fines and forfeitures and ambulance fees. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Deferred inflows of resources can also occur at the government wide level due to differences between investment gains and losses realized on pension investments compared to assumption used within the pension actuarial valuation model. 8. 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 Town Council Page 167 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 50 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. 9. Long-Term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities statement of net position. The long-term debt consists primarily of bonds payable and accrued compensated absences. Long-term debt for governmental funds is not reported as liabilities in the fund financial statements until due. The debt proceeds are reported as other financing sources, net of the applicable premium or discount and payments of principal and interest reported as expenditures. In the governmental fund types, issuance costs, even if withheld from the actual net proceeds received, are reported as debt service expenditures. However, claims and judgments paid from governmental funds are reported as a liability in the fund financial statements only for the portion expected to be financed from expendable available financial resources. Long-term debt and other obligations, financed by proprietary funds, are reported as liabilities in the appropriate funds. For proprietary fund types, bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method, if material. Bonds payable are reported net of the applicable bond premium or discount. Issuance costs are expensed when incurred. The net pension liability is included within long term debt. This liability is valued using an actuarial model and represents the difference between the plan fiduciary net position and the net pension liability consistent with GASB statement no. 68. The portion of this liability presented as a current liability is based on actuarial calculations for estimated future payments of benefits and refunds over the twelve months following yearend. 10. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the Fiduciary Net Position of the Texas Municipal Retirement System (TMRS) and additions to/deductions from TMRS’s Fiduciary Net Position have been determined on the same basis as they are reported by TMRS. For this purpose, plan contributions are recognized in the period that compensation is reported for the employee, which is when contributions are legally due. Benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Town Council Page 168 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 51 11. Other Postemployment Benefits (“OPEB”) The Town has implemented GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. This statement applies to the individual employers (TMRS cities) in the TMRS Supplemental Death Benefits (SDB) plan, with retiree coverage. The TMRS SDB covers both active and retiree benefits with no segregation of assets, and therefore doesn’t meet the definition of a trust under GASB No. 75 (i.e., no assets are accumulated for OPEB) and as such the SDB is considered to be an unfunded OPEB plan. For purposes of reporting under GASB No. 75, the retiree portion of the SDB is not considered a cost sharing plan and is instead considered a single employer, defined benefit OPEB plan. The death benefit for active employees provides a lump-sum payment approximately equal to the employee’s annual salary, calculated based on the employee’s actual earnings on which TMRS deposits are made, for the 12-month period preceding the month of death. The de ath benefit amount for retirees is $7,500. GASB No. 75 requires the liability of employers and nonemployer contributing entities to employees for defined benefit OPEB (net OPEB liability) to be measured as the portion of the present value of projected benefit payments to be provided to current active and inactive employees that is attributed to those employees’ past periods of service (total OPEB liability), less the amount of the OPEB plan’s fiduciary net position. In addition to the contributions made to TMRS, the Town provides post-employment medical, dental, and vision benefits for eligible retirees, their spouses and dependents through a single- employer plan with United Healthcare, which covers both active and retired members. 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. 12. Net Position Flow Assumption Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted –net position and unrestricted –net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted –net position is applied. 13. Fund Balance Flow Assumption Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to Town Council Page 169 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 52 consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.The general fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. 14. Fund Balance Policies Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The government itself can establish limitations on the use of resources through either a commitment (committed fund balance) or an assignment (assigned fund balance). The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision-making authority. The governing council is the highest level of decision-making authority for the government that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation. Amounts in the assigned fund balance classification are intended to be used by the government for specific purposes but do not meet the criteria to be classified as committed. The governing body (Council) has by resolution authorized the Director of Administrative and Financial Services to assign fund balance. The council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment.The general fund is the only fund that reports a positive unassigned fund balance amount. 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). Town Council Page 170 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 53 15. Estimates The preparation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. F. Revenues and Expenditures/Expenses 1. Program Revenues Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions (including special assessments) that are restricted to meeting the operational or capital requirements of a particular function or segment. All taxes, including those de dicated for specific purposes, and other internally dedicated resources are reported as general revenues rather than as program revenues. 2. Property Taxes Property taxes are levied by October 1 on the assessed value listed as of the prior January 1 for all real and business personal property in conformity with Subtitle E, Texas Property Tax Code. Taxes are due on receipt of the tax bill and are delinquent if not paid before February 1 of the year following the year in which imposed. Under state law, property taxes levied on real property constitute a lien on the real property which cannot be forgiven without specific approval of the State Legislature. The lien expires at the end of twenty years. Taxes levied on personal property can be deemed uncollectible by the Town. Property taxes at the fund level are recorded as receivables and 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 in accordance with Generally Accepted Accounting Principles have been recognized as revenue. 3.Proprietary Funds Operating and Nonoperating Revenues and Expenses Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the utility fund, golf course fund,and storm water utility funds are charges to customers for sales and services. The utility fund also recognizes as operating Town Council Page 171 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 54 revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. NOTE 2. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A.Explanation of certain differences between the governmental fund balance sheet and the government-wide statement of net position. The governmental fund balance sheet includes reconciliation between fund balance-total governmental funds and net position-governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that long-term liabilities, including bonds, are not due and payable in the current period and, therefore, are not reported in the funds. B.Explanation of certain differences between the governmental fund statement of revenues, expenditures, and changes in fund balances and the government-wide statement of activities. The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances –total governmental funds and changes in net position of governmental states that, “the issuance of long-term debt (e.g., bonds) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities.” NOTE 3. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY Annual budgets are adopted on a basis consistent with Generally Accepted Accounting Principles (GAAP) for the general, PID, court technology, court security, street maintenance, hotel/motel tax, crime control and prevention, recreation programs, debt service fund capital projects, and enterprise funds. The original budget is adopted by the Town Council prior to the beginning of the year. The legal level of control as defined by the Town Charter is the fund level. No funds can be transferred or added which affect the total fund expenditures without Town Council approval. Appropriations lapse at the end of the ye ar. During the fiscal year ended September 30, 2019,final general fund budgeted revenue was projected to be $106,390 more than the original budget. Final budgeted expenditures increased $76,910 compared to the original budget. Town Council Page 172 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 55 As of September 30, 2019, expenditures exceeded appropriations at the legal level of control for the General fund and Street Maintenance fund in the amounts of $29,094 and $6,383, respectively. A.Restricted Net Position The Town records restricted net position on amounts with externally imposed restrictions (e.g., through debt covenants or by grantors) or restrictions imposed by law through constitutional provisions or enabling legislation. Total restricted net position for the primary government was $6,112,682.Of which, $30,036 and $1,313,981, a total of $1,344,017,is restricted by enabling legislation. B.Deficit Equity At September 30, 2019, the Component Units, 4B Economic Corporation and Tax Increment Reinvestment Zone #1 had a deficit fund balance of $32,312 and $552,683, respectively. The deficit balances will be eliminated in the future through future sales taxes received by the Economic Corporation and as assessed values continue to increase as a result of growth and development within the TIRZ. NOTE 4. DETAILED NOTES ON ALL FUNDS A.Deposits and Investments Deposits -State statutes require that all deposits in financial institutions be fully collateralized by U.S. Government obligations or its agencies and instrumentalities or direct obligations of Texas or its agencies and instrumentalities that have a market value of not less than the principal amount of the deposits. The Town's cash deposits at September 30, 2019 and during the year ended September 30, 2019 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, and (8) investment staff quality and capabilities. Town Council Page 173 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 56 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. As of Se ptember 30, 2019, the Town had the following investments: Investment Type Certificates of deposit $3,630,869 0.37 External investment pools 1,833,038 0.12 Total fair value $5,463,907 Portfolio weighted average maturity 0.29 Weighted Average Maturity Value (Years) Carrying Interest rate risk:In compliance with the Town’s Investment Policy, as of September 30, 2019,the Town minimized the interest rate risk, related to current events market turmoil in the portfolio by:limiting the effective duration of security types not to exceed two years with the exception of securities purchases related to reserve funds; structuring the investment portfolio so that securities matured to meet cash requirements for ongoing operations,thereby avoiding the need to sell securities on the secondary market prior to maturity; monitoring credit ratings of portfolio positions to assure compliance with rating requirements imposed by the Public Funds Investment Act; and investing operating funds primarily in short-term securities, money market mutual funds, or similar government investment pools. Credit risk: The Town’s investment policy limits investments to obligations of the United States, State of Texas, or their agencies and instrumentalities with an investment quality rating of not less than “A” or its equivalent, by a nationally recognized investment rating firm. Other obligations must be unconditionally guaranteed (either express or implied) by the full faith and credit of the United States Government or the issuing U.S. agency and investment pools with an investment quality not less than AAA or AAA-m, or equivalent, by at least one nationally recognized rating service. As of September 30, 2019, all of the Town’s purchased investments in U.S.Agencies Obligations were rated AA+, AAA and Aaa by Standard & Poors, Fitch and Moody’s, respectively. Custodial credit risk –deposits: In the case of deposits, this is the risk that in the event of a bank failure, the Town’s deposits may not be returned to it.State statutes require that all deposits in financial institutions be insured or fully collateralized by U.S. government obligations or its agencies and instrumentalities or direct obligations of Texas or its agencies and instrumentalities that have a market value of not less than the principal amount of the deposits. As of September 30, 2019, the market values of pledged securities and FDIC exceeded bank balances. Town Council Page 174 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 57 Custodial credit risk –investments: For an investment, this is the risk that, in the event of the failure of the counterparty, the Town will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The Town’s investment policy requires that it will seek to safeguard securities at financial institutions, avoiding physical possession. Further, all trades, where applicable, are executed by delivery versus payment to ensure that securities are deposited in the Town’s safeguard account prior to the release of funds. TexPool TexPool was established as a trust company with the Treasurer of the State of Te xas as trustee, segregated from all other trustees, investments, and activities of the trust company. The State Comptroller of Public Accounts exercises oversight responsibility over TexPool. Oversight includes the ability to significantly influence operations, designation of management, and accountability for fiscal matters. Additionally, the State Comptroller has established an advisory board composed of both participants in TexPool and other persons who do not have a business relationship with TexPool.The advisory board members review the investment policy and management fee structure.Finally, Standard & Poor’s rate TexPool AAAm. As a requirement to maintain the rating, weekly portfolio information must be submitted to Standard & Poor’s, as well as to the office of the Comptroller of Public Accounts for review.At September 30, 2019, the fair value of the position in TexPool approximates fair value of the shares. There were no limitations or restrictions on withdrawals. Texas CLASS Texas CLASS is a local government investment pool emphasizing safety, liquidity, convenience and competitive yield. Since 1996, Te xas CLASS has provided Texas public entities a safe and competitive investment alternative. Texas CLASS invests only in securities allowed by the Texas Public Funds Investment Act. The pool is governed by a board of trustees, elected annually by its participants. Te xas CLASS is rated ‘AAAm’ by Standard and Poor’s Ratings Services.The ‘AAAm’ principal stability fund rating is the highest assigned to principal stability government investment pools and is a direct reflection of Texas CLASS’s outstanding credit quality and management.At September 30, 2019, the fair value of the position in Texas CLASS approximates fair value of the shares.There were no limitations or restrictions on withdrawals. Town Council Page 175 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 58 B.Receivables The following comprise receivable balances of the primary government at year end: Property taxes $71,994 $21,929 $- $- $- $93,923 Sales tax 175,126 - - 43,782 - 218,908 Franchise taxes 67,872 - - - - 67,872 Hotel occupancy - - - 72,500 - 72,500 Special assessments - - 25,260,000 - - 25,260,000 Municipal court 72,534 - - - - 72,534 EMS 180,485 - - - - 180,485 Storm drainage - - - - 35,605 35,605 Park services 376 - - - - 376 Other 42,626 - - - - 42,626 Allowance (71,448) - - - - (71,448) Total $539,565 $21,929 $25,260,000 $116,282 $35,605 $25,973,381 General Service Nonmajor Storm Drainage Total Debt PID No. 1 Governmental Utility The following comprise receivable balances of the component units at year end: Sales taxes $87,563 $43,158 $130,721 Total $87,563 $43,158 $130,721 4B Crime Control Corporation Prevention andEconomic Total Town Council Page 176 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 59 C.Capital Assets A summary of changes in governmental activities capital assets for the year end was as follows: Capital assets, not being depreciated: Land $10,463,669 $- $- $10,463,669 Construction in progress 798,062 2,293,432 (264,732) 2,826,762 Total capital assets not being depreciated 11,261,731 2,293,432 (264,732) 13,290,431 Capital assets, being depreciated: Buildings 11,877,299 - - 11,877,299 Improvements other than buildings 57,777,332 2,416,916 - 60,194,248 Machinery and equipment 2,780,986 207,328 - 2,988,314 Vehicles 1,279,566 69,404 264,732 1,613,702 Water system 5,362,005 - - 5,362,005 Infrastructure 14,332,062 - - 14,332,062 Total capital assets being depreciated 93,409,250 2,693,648 264,732 96,367,630 Less accumulated depreciation Buildings 1,232,260 417,984 - 1,650,244 Improvements other than buildings 24,400,242 2,022,981 - 26,423,223 Machinery and equipment 1,561,234 252,095 - 1,813,329 Vehicles 957,759 123,784 - 1,081,543 Water system 1,279,083 175,123 - 1,454,206 Infrastructure 5,556,502 364,372 - 5,920,874 Total accumulated depreciation 34,987,080 3,356,339 - 38,343,419 Net capital assets being depreciated 58,422,170 (662,691) 264,732 58,024,211 $69,683,901 $1,630,741 $- $71,314,642 Ending Balances Additions Reclassifications Balances Total capital assets Beginning Retirements/ Depreciation expense was charged to governmental functions as follows: General government $438,221 Emergency medical services 43,905 Information systems 43,543 Police 133,529 Fire 5,218 Parks and recreation 740,483 Streets (Infrastructure)1,951,440 $3,356,339 Total Governmental Activities Depreciation Expense Town Council Page 177 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 60 A summary of changes in business-type activities capital assets for the year end was as follows: Capital asset s, bein g depreci ated: Machinery an d equ ipment $24,112 $- $- $24,112 Infrastructure 2,039,766 - - 2,039,766 Total ca pi tal assets bein g de pr eci ated 2,063,878 - - 2,063,878 Less accu mulated depr eci ation Machinery an d equ ipment 8,993 2,387 - 11,380 Infrastructure 176,479 51,083 - 227,562 Total accu mulated depr eciation 185,472 53,470 - 238,942 Net ca pital asset s bein g depreci ated 1,878,406 (53,470) - 1,824,936 Total ca pi tal assets $1,878,406 $(53,470) $- $1,824,936 Balan ces In cr eases Reclassificat ion s Balan ces Begin ning Decr eases/En din g Depreciation expense was charged to business-type activities as follows: Trophy Club Park $2,387 Storm Drainage Utility 51,083 $53,470 Total Business-Type Activities Depreciation Expense Town Council Page 178 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 61 A summary of changes in discretely presented component unit activities capital assets for the year end was as follows: Capital asset s, not bein g depreciated: Land $2,538,765 $- $- $2,538,765 Construction in progr ess 106,950 261,010 (367,960) - Total ca pi tal assets not being depreciated 2,645,715 261,010 (367,960) 2,538,765 Capital asset s, being depr eciated: Infrastructure - - 367,960 367,960 Total ca pi tal assets bein g de pr eciated - - 367,960 367,960 Less accu mulated depr eciation Infrastructure - 8,177 - 8,177 Total accu mulated depr eciation - 8,177 - 8,177 Net ca pital asset s bein g depreci ated - (8,177) 367,960 359,783 Total ca pi tal assets $2,645,715 $252,833 $- $2,898,548 Begin ning Decr eases/En din g Balan ces In cr eases Reclassification s Balan ces Town Council Page 179 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 62 D.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.In general, the Town uses the debt service fund and general fund to liquidate governmental long-term liabilities, with the exception of special assessment bonds which are fully covered by assessment receivables.The following is a summary of changes in the Town’s total long-term liabilities for the year ended September 30, 2019. Governmental Activities: Bonds, notes and other payables: General Obligation Bonds $10,640,000 $- $(835,000) $9,805,000 $870,000 Certificates of Obligation 11,415,000 - (778,000) 10,637,000 848,000 Special Assessment Bonds 25,285,577 - (25,577) 25,260,000 1,275,000 Less deferred amounts: For premiums 4,457,420 - (297,038) 4,160,382 - Total Bonds Payable 51,797,997 - (1,935,615) 49,862,382 2,993,000 Capital lease 173,280 - (85,075) 88,205 88,205 $51,971,277 $- $(2,020,690) $49,950,587 $3,081,205 $46,869,382 Business-Type Activities: Certificates of Obligation $980,000 $- $(155,000) $825,000 $155,000 Less deferred amounts: For premiums 21,358 - (4,419) 16,939 - 1,001,358 - (159,419) 841,939 155,000 $686,939 Component Unit Activities: Certificates of Obligation $2,385,000 $- $(105,000) $2,280,000 $105,000 Less deferred amounts: For discounts (22,542) - 1,333 (21,209) - $2,362,458 $- $(103,667) $2,258,791 $105,000 $2,153,791 Amounts Beginning Ending Total Component Unit Activities Due Within Balance Additions Retired Balance Total Governmental Activities Total Business-Type Activities Long-term liabilities due in more than one year Long-term liabilities due in more than one year Long-term liabilities due in more than one year One Year Long-term liabilities applicable to the Town’s governmental activities are not due and payable in the current period and accordingly, are not reported as fund liabilities in the governmental funds. Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due.The Town intends to retire all of its general long-term liabilities, plus accrued interest, from property taxes and other current revenues from the debt Town Council Page 180 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 63 service fund as has been done in prior years. The special assessment bonds are fully offset by assessment receivables. The proprietary fund type long-term debt will be repaid, plus accrued interest, from operating revenues of the respective fund. Capital leases are secured by the underlying asset. In the event of default, the lender may demand immediate payment or take possession of the asset. As of September 30, 2019, the total net carrying value of the capital lease assets was $240,465. Long-term debt at year end was comprised of the following debt issues: Gove rnm enta l Activitie s:Year Av er age of Final An nual Or iginal Balance De scription Issue Ma turity Payment Amount 9/30/2019 General Ob ligation B on ds: Im pr ov emen ts 3.00 - 4.13 %2010 2030 250,000$ 5,000,000$ 3,310,000$ Refunding 2.00 - 4.00 %2010 2022 232,500 2,790,000 605,000 Refunding 2.18 %2015 2025 203,000 2,030,000 1,390,000 Im pr ov ements 2.00-3.00 %2016 2036 262,250 5,245,000 4,500,000 9,805,000$ Cer tificate of Ob ligations: Com bination Ta x and Revenue-Ser ies 2 004 3.50 - 4.75 %2004 2024 32,500$ 650,000$ 167,000$ Cer tificates of Ob ligation Ser ies 2013 2.50 - 3.25 %2013 2028 86,667 1,300,000 920,000 Cer tificates of Ob ligation Ser ies 2014 2.00 - 3.75 %2014 2034 125,000 2,500,000 2,010,000 Cer tificates of Ob ligation Ser ies 2016 2.00-4.00 %2016 2036 210,500 4,210,000 3,760,000 Cer tificates of Ob ligation Ser ies 2017 2.50-3.00 %2017 2037 222,250 4,445,000 3,780,000 10,637,000$ Special As sessments: Special As sessment Rev enue Refunding-Ser ies 2015 2.00-4.00 %2015 2033 1,453,054$ 26,154,979$ 25,260,000 25,260,000$ Capital Lea ses: Ca pital Lea se - Ser ies 2018 3.68 %2018 2020 88,244$ 264,732$ 88,205 88,205$ In terest Rate The PID special assessment bonds are secured solely by the pledged property assessments revenue for the related properties within the Trophy Club PID 1 area. The debt is repaid with property assessments by the respective property owners. The Town is not obligated to pay the bonds from any funds raised from taxation or from any other revenues available to the Town. The Town, through their designed trustee and third-party administrator, set up a separate fund used to service the bond, collect the property assessments, and for initiating any future foreclosures. Town Council Page 181 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 64 Business-type Activitie s: Year Av er age of Final An nual Or iginal Balance De scription Is sue Ma turity Payment Am ount 9/30/2019 Cer tifi cat es of Ob ligation Ser ies 2013 2.50 - 3.00 %2013 2024 154,545$ 1,700,000$ 825,000$ 825,000$ Co mponent-Unit Activitie s: Year Av er age of Final An nual Or iginal Balance De scription Is sue Ma turity Payment Am ount 9/30/2019 Cer tifi cat es of Ob ligation Ser ies 2015 1.00 - 4.75 %2015 2035 134,500$ 2,690,000$ 2,280,000$ 2,280,000$ Rat e In terest In terest Rat e Town Council Page 182 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 65 The annual requirements to amortize long-term debt outstanding of governmental activities as of September 30, 2019, are as follows: Gover nmental Ac tivit ies Yea r Ending Sept ember 3 0, 2020 $870,000 $302,983 $1,172,983 2021 890,000 276,287 1,166,287 2022 925,000 246,891 1,171,891 2023 740,000 216,327 956,327 2024-2028 3,310,000 743,920 4,053,920 2029-2033 2,135,000 279,744 2,414,744 2034-2037 935,000 51,838 986,838 Total $9,805,000 $2,117,990 $11,922,990 Yea r Ending Sept ember 3 0, 2020 $848,000 $314,683 $1,162,683 2021 563,000 288,397 851,397 2022 588,000 269,358 857,358 2023 608,000 251,275 859,275 2024-2028 3,190,000 975,340 4,165,340 2029-2033 2,960,000 552,763 3,512,763 2034-2037 1,880,000 123,600 2,003,600 Total $10,637,000 $2,775,416 $13,412,416 Yea r Ending Sept ember 3 0, 2020 $1,275,000 $977,380 $2,252,380 2021 1,340,000 914,705 2,254,705 2022 1,400,000 914,705 2,314,705 2023 1,469,000 914,705 2,383,705 2024-2028 8,619,000 4,573,525 13,192,525 2029-2033 11,157,000 4,510,100 15,667,100 Total $25,260,000 $12,805,120 $38,065,120 Spec ia l As sessment Bonds Total Requir ement sInterestPrincipal Gover nment al Ac tivit ies Gover nment al Ac tivit ies Total Pr inc ipa l Interes t Requir ement s Gener al Obliga tion Bonds Gover nment al Ac tivit ies Total Cer tific ates of Obliga tion Bonds Pr inc ipa l Interes t Requir ement s Yea r Ending Sept ember 3 0, 2020 $88,205 $3,246 $91,451 Total $88,205 $3,246 $91,451 Ca pit al Lea se Gover nmental Ac tivit ies Tot al Pr incipa l Int er es t Requirement s Town Council Page 183 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 66 The general fund has been used to liquidate compensated absences and capital lease liabilities. The annual requirements to amortize long-term debt outstanding of business-type activities as of September 30, 2019, are as follows: Bus ines s-Type Ac tivities Yea r Ending Tot al Sept ember 3 0,Principa l Interes t Requir ement s 2020 $155,000 $20,400 $175,400 2021 160,000 16,462 176,462 2022 165,000 12,194 177,194 2023-2027 350,000 10,213 360,213 Total $830,000 $83,544 $1,068,544 Certific ates of Obliga tion The annual requirements to amortize long-term debt outstanding of component units as of September 30, 2019, are as follows: Component -Unit Ac tivit ies Yea r Ending Tot al Sept ember 3 0,Princ ipa l Interes t Requir ements 2020 105,000$ 96,555$ 201,555$ 2021 110,000 93,668 203,668 2022 110,000 90,258 200,258 2023-2027 625,000 385,143 1,010,143 2028-2032 775,000 241,050 1,016,050 2033-2037 555,000 53,675 608,675 Total 2,280,000$ 960,348$ 3,240,348$ Cer tific ates of Obliga tion E. Other Long-term Liabilities The following summarizes the changes in other long-term liabilities of the primary government during the year. Governmental Ac tivit ies: Compensated Absences $284,527 $20,758 $ - $305,285 $274,757 Tot al Governmental Ac tivit ies $284,527 $20,758 $ - $305,285 $274,757 Amounts Due Within One Yea r Beginning Ba la nc e Additions Reductions Ending Ba la nc e The general fund has typically been used to liquidate the liability for compensated absences for governmental activities. Town Council Page 184 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 67 F.Deferred Charges on Refunding A deferred charge resulting from the issuance of the 2010 and 2015 general obligation refunding bonds has been recorded as a deferred outflow of resources and is being amortized to interest expense over the term of the refunded debt. The net balance outstanding as of September 30, 2019 was $2,946,316 for government-type activity reflected in the government-wide statements. Current year amortization expense totaled $206,009. G.Interfund Transactions A summary of interfund receivables and payables balances at September 30, 2019 is as follows: Ca pita l Due fro m (Re ceiving Fund):Pro je cts General Fun d $- $273,096 $273,096 De bt Service Fund - 455,509 455,509 Ho tel Occupancy Fun d 258,831 390,264 649,095 Tr ophy Club Park - 76,572 76,572 Tota l $258,831 $1,195,441 $1,454,272 To ta l Pa rk La nd Dedicatio n Due to (Pa ya ble Fund): Interfund balances resulted from the timing difference between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made.All balances are expected to be paid in the subsequent year. Transfers between funds during the year are as follows: Transfe r O ut: Court Secur it y Fun d $3,000 $- $3,000 Tr op hy Cl ub Park 20,000 - 20,000 St or m Dr ainage Ut ilit y Fund 40,000 26,937 66,937 To ta l $63,000 $26,937 $89,937 To ta l Transfe r In: Ge ne ra l Debt Se rvice Transfers were primarily used to support debt service, capital expenditures,and to transfer funds to the general fund for administrative costs. Town Council Page 185 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 68 NOTE 5. OTHER INFORMATION A.Risk Management The Town is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; business interruption; errors and omissions; injuries to employees;employee health benefits; and other claims of various natures. The Town participates in the Texas Municipal League Intergovernmental Risk Pool (Pool) which provides protection for risks of loss. Premiums are paid to the Pool that retains the risk of loss beyond the Town’s policy deductibles. Any losses reported but unsettled or incurred and not reported, are believed to be insignificant to the Town’s basic financial statements. For the last three years,there have been no significant reductions of insurance coverage or insurance settlements in excess of insurance coverage. B.Contingent Liabilities The Town is involved in lawsuits with other parties from time to time. While the ultimate result of these matters cannot be predicted with certainty, the Town does not expect them to have a materially adverse effect on the basic financial statements. Amounts received or receivable from granting agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amounts of expenditures which may be disallowed by the grantor cannot be determined at this time although the Town expects such amounts, if any, to be immaterial. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends, including frequency and amount of payouts, and other economic and social factors. C.Contingencies Amounts received or receivable from granting agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amounts of expenditures which may be disallowed by the grantor cannot be determined at this time although the Town expects such amounts, if any, to be immaterial. Town Council Page 186 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 69 Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported. Claim liabilities are calculated considering the effects of inflation, recent claim settlement trends, including frequency and amount of payouts, and other economic and social factors. D. Defined Benefit Pension Plans Texas Municipal Retirement System Plan Description The Town of Trophy Club, Texas participates as one of 887 plans in the nontraditional, joint contributory, hybrid defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). TMRS is an agency created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent multiple-employer retirement system for municipal employees in the State of Texas. The TMRS Act places the general administration and management of the system with a six- member board of trustees. Although the Governor, with the advice and consent of the Senate, appoints the board, TMRS is not fiscally dependent on the State of Texas. TMRS’s defined benefit pension plan is a tax-qualified plan under Section 401 (a) of the Internal Revenue Code. TMRS issues a publicly available Comprehensive Annual Financial Report (CAFR) that can be obtained at www.tmrs.com. All eligible employees of the Town are required to participate in TMRS. Benefits Provided TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the Town, within the options available in the state statutes governing TMRS. At retirement, the benefit is calculated as if the sum of the employee’s contributions, with interest, and the town-financed monetary credits with interest were used to purchase an annuity. Members may choose to receive their retirement benefit in one of seven payment options. Members may also choose to receive a portion of their benefit as a partial lump sum Distribution in an amount equal to 12, 24, or 36 monthly payments, which cannot exceed 75% of the member’s deposits and interest. The plan provisions are adopted by the governing body of the Town, within the options available in the state statutes governing TMRS and within the actuarial constraints also in the statutes. Town Council Page 187 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 70 Plan provisions for the Town were as follows: Plan Year 2018 Plan Year 2017 Employee deposit rate 7%7% Matching ratio (town to employee) 2 to 1 2 to 1 Years required for vesting 5 5 Service retirement eligibility (expressed as age / years of service)60/5, 0/20 60/5, 0/20 Updated service credit 100% Repeating Transfers 100% Repeating Transfers Annuity increase (to retirees)30% of CPI repeating 30% of CPI repeating The Town also participates in Social Security. Employees covered by benefit terms At the December 31, 2018 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 37 Inactive employees entitled to but not yet receiving benefits 107 Active employees 77 Total 221 Contributions The contribution rates for employees in TMRS are either 5%, 6%, or 7% of employee gross earnings, and the Town matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of the Town. Under the state law governing TMRS, the contribution rate for each town is determined annually by the actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Town Council Page 188 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 71 Employees for the Town of Trophy Club, Texas were required to contribute 7%of their annual gross earnings during the fiscal year. The contribution rates for the Town of Trophy Club, Texas were 12.78% and 12.95% in calendar years 2018 and 2019, respectively. The Town’s contributions to TMRS for the year ended Se ptember 30, 2019, were $728,070 and were equal to the required contributions. Net Pension Liability The Town’s Net Pension Liability (NPL) was measured as of December 31, 2018, and the Total Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. The Total Pension Liability in the December 31, 2018 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.5% per year Overall payroll growth 3.5% to 10.5%, including inflation Investment Rate of Return 6.75%, net of pension plan investment expense, including inflation Salary increases were based on a service-related table. Mortality rates for active members, retirees, and beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustment, with male rates multiplied by 109% and female rates multiplied by 103%.The rates are projected on a fully generational basis by scale BB to account for future mortality improvements. For disabled annuitants, the gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustment are used with males rates multiplied by 109% and female rates multiplied by 103% with a 3-year set-forward for both males and females. In addition, a 3% minimum mortality rate is applied to reflect the impairment for younger me mbers who become disabled. The rates are projected on a fully ge nerational basis by scale BB to account for future mortality improvements subject to the 3% floor. The actuarial assumptions were de veloped primarily from the actuarial investigation of the experience of TMRS over the four ye ar period from December 31, 2010 to De cember 31, 2014. They were adopted in 2015 and first used in the December 31, 2015 actuarial valuation. The post- retirement mortality assumption for healthy annuitants and Annuity Purchase Rate (APRs) are based on the Mortality Experience Investigation Study covering 2009 through 2011 and dated December 31, 2013. In conjunction with these changes first used in the December 31, 2013 valuation, the System adopted the Entry Age Normal actuarial cost method and a one-time change to the amortization policy. Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income in order to satisfy the short-term and long-term funding needs of TMRS. Town Council Page 189 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 72 The long-term expected rate of return on pension plan investments was determined using a building-block me thod in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. In determining their best estimate of a recommended investment return assumption under the various alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic me an (aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive). The target allocation and best estimates of real rates of return for each major asset class in fiscal ye ar 2019 are summarized in the following table: Asset Class Target Allocation Long-Term Expected Real Rate of Return (Arithmetic) Domestic Equity 17.5%4.30% International Equity 17.5%6.10% Core Fixed Income 10.0%1.00% Non-Core Fixed Income 20.0%3.39% Real Return 10.0%3.78% Real Estate 10.0%4.44% Absolute Return 10.0%3.56% Private Equity 5.0%7.75% Total 100.0% Discount Rate The discount rate used to measure the Total Pension Liability was 6.75%. The projection of cash flows used to determine the discount rate assumed that employee contributions will remain at the current 7.0% and employer contributions will be made at the rates specified in statute. Based on that assumption, the pension plan’s Fiduciary Net Position was projected to be available to make all projected future benefit payments of current plan members.Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the Total Pension Liability. Town Council Page 190 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 73 Changes in Net Pension Liability: Tot al Pension Liabilit y (a) Pla n Fiduc ia ry Net Pos it ion (b) Net Pens ion Liabilit y (a) – (b) Ba la nc e a t 12/31/17 $ 1 8,576,331 $ 1 7,206,861 $ 1 ,3 69,470 Cha nges for the yea r: S er vice Cos t 8 63,553 - 8 63,553 Int eres t 1 ,2 63,163 - 1 ,2 63,163 Dif ference between expec ted a nd a ctual experienc e (258,925) - (258,925) Cha nges of a ssumpt ions - - - Cont rib utions – employer - 6 33,832 (633,832) Cont rib utions – employee - 3 47,155 (347,155) Net inves tment income - (515,889) 5 15,889 Benef it pa yment s, inc luding r ef unds of emp. contrib utions (589,161) (589,161) - Adminis trative expense - (9,961) 9 ,961 Ot her c hanges - (520) 5 20 Net c hanges 1,2 78,630 (134,544) 1 ,413,174 Ba la nc e a t 12/31/18 $ 1 9,854,961 $ 1 7,072,317 $ 2 ,782,644 The Town uses the general fund to liquidate pension liabilities. Sensitivity of the Net Position Liability to Changes in the Discount Rate The following presents the net pension liability of the Town, calculated using the discount rate of 6.75%, as well as what the Town’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.75%) or 1-percentage-point higher (7.75%) than the current rate: 1% Decrease Cur rent Single R ate 1% Inc rease 5.75%As sumption 6 .7 5% 7.75% $5,953,952 $2,782,644 $235,114 Pension Plan Fiduciary Net Position Detailed information about the pension plan’s Fiduciary Net Position is available in a separately issued TMRS financial report. That report may be obtained on the Internet at www.tmrs.com. Town Council Page 191 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 74 Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: For the ye ar ended September 30, 2019, the Town recognized a pension expense of $776,296. This amount is included as part of expenses within the functional program activities. At September 30, 2019, the Town reported deferred outflows and inflows of resources related to pensions from the following sources: Primary Government: Di ffer en ce b et ween project ed a nd a ctual investment ea rnings $886,093 $- Di ffer en ces between expected a nd a ct ua l econ om ic ex perien ce - 314,807 Con tribution s subsequ en t to t he measurement date 554,312 - Tota l $1,440,405 $314,807 De ferred Outflo ws of Re so urces Deferre d (I nflo ws) o f Re so urces Deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date of $554,312 will be recognized as a reduction of the net pension liability for the year ending September 30, 2020. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Yea r ended Dec ember 3 1: 2019 $101,104 2020 37,924 2021 96,787 2022 335,471 2023 - Thereafter - $571,286 E.Postemployment Benefits Other Than Pensions The Town also participates in the cost sharing multiple-employer defined benefit group-term life insurance plan operated by the Texas Municipal Retirement System (TMRS) known as Town Council Page 192 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 75 the Supplemental Death Benefits Fund (SDBF). The Town elected, by ordinance, to provide group-term life insurance coverage to both current and retired employees. The Town may terminate coverage under and discontinue participation in the SDBF by adopting an ordinance before November 1 of any year to be effective the following January 1. The death benefit for active employees provides a lump-sum payment approximately equal to the employee’s annual salary (calculated based on the employee’s actual earnings, for the 12-month period preceding the month of death); retired employees are insured for $7,500; this coverage is an “other postemployment benefit,” or OPEB. The Town offers supplemental death to: Plan Year 2018 Plan Year 2017 Active employees (yes or no) Yes Yes Retirees (yes or no) Yes Yes The Town contributes to the SDBF at a contractually required rate as determined by an annual actuarial valuation. The rate is equal to the cost of providing one-year term life insurance. The funding policy for the SDBF program is to assure that adequate resources are available to meet all death benefit payments for the upcoming year; the intent is not to pre- fund retiree term life insurance during employees’ entire careers. Employees covered by benefit terms At the December 31, 2018 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 26 Inactive employees entitled to but not yet receiving benefits 27 Active employees 77 Total 130 The Town’s contributions to the TMRS SDBF for the years ended 2019, 2018 and 2017 were $1,128, $982 and $912, respectively, which equaled the required contributions each year. Schedule of Contribution Rates (RETIREE-only portion of the rate) Plan/ Calendar Year Annual Required Contribution (Rate) Actual Contribution Made (Rate) Percentage of ARC Contributed 2017 0.02%0.02%100.0% 2018 0.02%0.02%100.0% 2019 0.02%0.02%100.0% Town Council Page 193 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 76 Total OPEB Liability The Town’s Postemployment Benefits Other Than Pensions Liability (OPEB) was measured as of December 31, 2018, and the Total OPEB Liability was de termined by an actuarial valuation as of that date. Actuarial assumptions: The Total OPEB Liability in the December 31, 2018 actuarial valuation was de termined using the following actuarial assumptions: Inflation 2.5% per year Overall payroll growth 3.5%to 10.5%, including inflation per year Discount rate 3.71% Retirees’ share of benefit-related costs $0 Administrative expenses All administrative expenses are paid through the Pension Trust and accounted for under reporting requirements under GASB Statement No. 68 Salary increases were based on a service-related table. Mortality rates for active me mbers, retirees, and beneficiaries were based on the gender-distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustment, with male rates multiplied by 109% and female rates multiplied by 103%.The rates are projected on a fully generational basis by scale BB to account for future mortality improvements. For disabled annuitants, the gender- distinct RP2000 Combined Healthy Mortality Tables with Blue Collar Adjustment are used with males rates multiplied by 109% and female rates multiplied by 103% with a 3-year set- forward for both males and females. In addition, a 3% minimum mortality rate is applied to reflect the impairment for younger me mbers who become disabled. The rates are projected on a fully generational basis by scale BB to account for future mortality improvements subject to the 3% floor. Discount Rate: The discount rate used to measure the Total OPEB Liability was 3.71%. The discount rate was based on the Fidelity Index’s “20-Year Municipal GO AA Index” rate as of December 31, 2018. Town Council Page 194 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 77 Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the Town, calculated using the discount rate of 3.71%, as well as what the Town’s total OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (2.71%) or 1-percentage- point higher (4.71%) than the current rate: $232,634 $188,329 $155,056 1% Dec rease (2.71%) Cur rent Single Ra te As sumpt ion 3 .7 1% 1% Inc rease (4.71%) Changes in the Total OPEB Liability: Tot al OPEB Lia bilit y Bala nc e a t 12/31/17 $ 1 87,658 Cha nges for the yea r: S ervice Cos t 1 2,386 Interest 6 ,4 00 Difference between expec ted a nd a ctual experienc e (887) Changes of a ssumptions (16,237) Benefit payments (991) Net c hanges 6 71 Bala nc e a t 12/31/18 $ 1 88,329 Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended September 30, 2019, the Town recognized OPEB expense of $18,834. Town Council Page 195 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 78 At September 30, 2019, the Town reported deferred outflows of resources and deferred inflows of resources related to the OPEB liability from the following sources: Di ffer en ces b et ween ex pect ed a nd a ctual econom ic ex perien ce $ - 2 ,0 94 Ch anges i n assumptions - 7 31 Con tributions subsequent to measurem ent dat e 8 56 - Tota l $ 8 56 $ 2 ,8 25 Deferre d Outflo ws of Re so urce s Deferre d Inflo ws of Re so urce s The Town reported $856 as deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability for the year ending September 30, 2020. Other amounts reported as deferred outflows of resources related to pensions will be recognized in pension expense as follows: Yea r ended December 3 1: 2019 $48 2020 48 2021 48 2022 (870) 2023 (2,099) Thereafter - $(2,825) F.Other Post-Employment Benefits Plan Description The Town provides post-employment medical, dental, and vision benefits (OPEB) for eligible retirees, their spouses and dependents through a single-employer plan with United Healthcare, which covers both active and retired members. Town Council Page 196 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 79 As of September 30, 2019, membership consisted of: Retirees or beneficiaries currently receiving benefits - Active employees 77 Total 77 The three optional benefit levels, Plan 05X8617, 05X8569 and 05X8589, 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: Singl e Cov er age $488 $440 $330 Singl e + Spouse $1,302 $1,174 $881 Sin gl e + Ch ildr en $923 $832 $625 Singl e + Fa mily $1,641 $1,479 $1,111 Hi gh Plan 05X8589 St andard Plan 05X8569 HS A Plan 05X8617 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 Expense and Net OPEB Liability The Town’s annual OPEB cost is calculated based on actuarially assumptions determined in accordance with the parameters of GASB 75. Town Council Page 197 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 80 The following table shows the components of the Town’s annual OPEB expense for the year, the amount contributed to the plan, and changes in the Town’s net OPEB liability. Service cost $5,389 In terest Cos t 2,101 Annual OPEB c os t expens e 7,490 Contributions ma de - Cha nge in net OPEB liability 7,490 Net OPEB Liability-b eginning of yea r 51,759 Net OPEB Liability-end of yea r $59,249 The Town’s annual OPEB expense, the percentage of annual OPEB expense contributed to the plan, and the net OPEB liability for 2019 and the preceding year are as follows: Per cent age of Fiscal Annua l OPEB Yea r Cos t Contributed 2017 $15,640 0.00%$28,921 $44,561 2018 $7,198 0.00%$44,561 $51,759 2019 $7,490 0.00%$51,759 $59,249 Annual OPEB Ex pens e Beginning Ending Net OPEB Liabilit y Funded Status and Funding Progress No changes were made in the actuarial assumptions since the projections are based on the assumptions shown in the September 30, 2018 valuation report. The data used in the roll forward of the Se ptember 30, 2018 valuation results remain unchanged from that used in the fiscal year 2018 GASB 75 actuarial valuation report. The data reflects the plan census as of Se ptember 30, 2018. Since the Se ptember 30, 2018 valuation results were rolled forward there are no liability gains or losses for the projection period. As of September 30, 2019, the actuarial accrued liability for benefits was $59,249, all of which was unfunded. The actuarial accrued liability for benefits was determined based on the Se ptember 30, 2018 valuation, the most recent actuarial valuation date available.The covered payroll (annual payroll of active employees covered by the plan) for fiscal year 2019 was $3,662,902, and the ratio of the unfunded actuarial accrued liability to the covered payroll was 1.62%. Actuarial valuations of an ongoing program involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Town Council Page 198 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 81 Amounts determined regarding the funded status of the Program and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as RSI following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of Program, assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions: The Net OPEB Liability in the September 30, 2018 actuarial valuation was determined using the following actuarial assumptions: Inflation 3.0% per year Health care cost trend Level 5.00% Discount rate 4.06% (1.06% real rate of return plus 3.00% inflation) Salary scale 3.50% Mortality RPH-2014 Total Table with Projection MP-2018 Projections of benefits are based on a 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. The GASB statement requires that the discount rate used to determine the plan liabilities for retiree healthcare benefits be based on the earnings rate of the plan assets if the projected assets are sufficient to cover the projected benefit payments. If the projected assets are not sufficient then a municipal bond index rate must be used for discounting benefits not covered by the projected assets. Since there are no plan assets held in trust the Bond Buyer GO Bond 20 Index is used for determining the discount rate of 4.06%. Town Council Page 199 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 82 Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the Town, calculated using the discount rate of 4.06%, as well as what the Town’s total OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (3.06%) or 1-percentage-point higher (5.06%) than the current rate: $53,071 $59,249 $66,200 1% Dec rease (3.06%) Current Single Ra te As sumption 4 .0 6% 1% Inc rease (5.06%) Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend The following presents the total OPEB liability sensitivity of the Town using the healthcare cost trend: $51,354 $59,249 $68,672 1% Decrease (3 .06%) Cu rre nt He althcare Co st T re nd 1% Incre ase (5 .06%) G.PUBLIC IMPROVEMENT 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 District 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 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. In December, 2015,the Town refunded the Public Improvement District No. 1 bonds. Total interest savings for the over 1,400 residences in the Public Improvement District exceeded $16.4M, with a net present value savings of over 33% of the refunded amount. Town Council Page 200 of 282 Meeting Date: March 24, 2020 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2019 83 H.TAX INCENTIVES Chapter 380 of the Texas Tax Code authorizes allows the governing body of a municipality to establish and provide for the administration of one or more programs, including programs for making loans and grants of public money and providing personnel and services of the municipality, to promote state or local economic development and to stimulate business and commercial activity in the municipality.As of September 30, 2019 the Town of Trophy Club, Texas had no tax incentives. I.RESTATEMENT The Town restated beginning net position/fund balance within governmental activities and discretely present component unit activities to correct accounting errors related to accrued receivables and capital assets. In addition, the Crime Control and Prevention fund was reclassified from a nonmajor governmental fund to a discretely presented component unit. The restatement of beginning net position/fund balance is as follows: Pr ior y ea r ending n et p os ition/fund b alance, a s repor ted $35,869,255 $5,551,378 $1,453,605 Cor rect ion to c apit al asset balances (6 6,842) - - Cor rect ion to a ccr ued receiv ables (1 10,860) (1 10,860) - Cor rect r epor ting of a ssessment receiv ables 25,285,577 - - (7 7,610) - (7 7,610) Restated begi nning n et position/fu nd balance $60,899,520 $5,440,518 $1,375,995 Ch ange i n fu nd repor ting - m aj or fu nd t o discretely pr es en ted component unit No nm ajor Go ve rnmenta l Go ve rnm enta l General Activitie s Fund Pr ior yea r ending net pos ition, a s reported $221,850 $814,202 $- To c orrect capital a ssets 106,949 106,949 - To c hange pres ent ation of c omponent unit 77,610 - 77,610 $406,409 $921,151 $77,610 Unit s Cor poration Pr event ion Restated beginning net pos it ion Component Ec onomic Crime Cont rol J.SUBSEQUENT EVENTS There were no material subsequent events through March 17, 2020, the date the financial statements were issued. Town Council Page 201 of 282 Meeting Date: March 24, 2020 84Town Council Page 202 of 282 Meeting Date: March 24, 2020 REQUIRED SUPPLEMENTARY INFORMATION 85Town Council Page 203 of 282 Meeting Date: March 24, 2020 Revenues Property tax $6,838,589 $6,838,589 $6,746,579 $(92,010) Sales tax 946,711 946,711 1,023,120 76,409 Franchise and local taxes 805,087 805,087 911,738 106,651 License and permits 217,500 217,500 499,302 281,802 Intergovernmental 674,452 674,452 674,452 - Grant revenue - 106,390 - (106,390) Charges for services 794,174 794,174 764,282 (29,892) Fines and forfeitures 336,251 336,251 307,977 (28,274) Investment income 45,000 45,000 206,601 161,601 Other revenue 121,144 121,144 391,761 270,617 10,778,908 10,885,298 11,525,812 640,514 Expenditures Current: Manager's office 605,346 495,394 1,161,520 (666,126) Human resources 463,993 473,228 428,739 44,489 Finance 567,277 573,999 526,601 47,398 Municipal court 86,962 86,962 66,879 20,083 Police 2,411,786 2,451,148 2,483,871 (32,723) Fire 1,273,919 1,357,269 1,303,324 53,945 Facilities management 339,477 340,561 319,018 21,543 Emergency medical services 1,243,579 1,257,718 1,117,273 140,445 Streets 218,764 219,625 191,463 28,162 Community development 655,775 663,679 568,239 95,440 Parks and recreation 2,426,951 2,445,426 2,196,541 248,885 Legal 127,230 127,230 127,898 (668) Information services 679,014 684,744 623,819 60,925 Debt service: Principal - - 85,075 (85,075) Interest - - 5,817 (5,817) 11,100,073 11,176,983 11,206,077 (29,094) * (321,165) (291,685) 319,735 611,420 Town of Trophy Club, Texas STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (Page 1 of 2) Variance with PositiveFinal Budget GENERAL FUND For the Year Ended September 30, 2019 Original Budget Final Budget Total Expenditures Actual (Negative) Revenues Over (Under) Total Revenues 86Town Council Page 204 of 282 Meeting Date: March 24, 2020 Transfers in 63,000 63,000 63,000 - 63,000 63,000 63,000 - Net Change in Fund Balance $(258,165) $(228,685) 382,735 $611,420 Beginning fund balance 5,440,518 $5,823,253 Notes to Required Supplementary Information 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). * Expenditures exceeded appropriations at the legal level on control. Final Budget Positive Actual (Negative) Total Other Financing Sources Ending Fund Balance Other Financing Sources (Uses) Town of Trophy Club, Texas STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (Page 2 of 2) GENERAL FUND For the Year Ended September 30, 2019 Variance with Final Budget Original Budget 87Town Council Page 205 of 282 Meeting Date: March 24, 2020 Total pension liability Service cost $863,553 $789,530 $795,448 Interest 1,263,163 1,173,728 1,113,555 Changes in benefit terms - - - Differences between expected and actual experience (258,925)(62,418)(471,044) Changes of assumptions - - - Benefit payments, including refunds of participant contributions (589,161) (636,604) (450,496) Net change in total pension liability 1,278,630 1,264,236 987,463 Total pension liability - beginning 18,576,331 17,312,095 16,324,632 Total pension liability - ending (a)19,854,961 18,576,331 17,312,095 Plan fiduciary net position Contributions - employer $633,832 $606,585 $593,840 Contributions - members 347,155 323,389 329,281 Net investment income (515,889) 2,061,434 912,155 Benefit payments, including refunds of participant contributions (589,161) (636,604) (450,496) Administrative expenses (9,961) (10,676) (10,296) Other (520) (541) (555) Net change in plan fiduciary net position (134,544) 2,343,587 1,373,929 Plan fiduciary net position - beginning 17,206,861 14,863,274 13,489,345 Plan fiduciary net position - ending (b)$17,072,317 $17,206,861 $14,863,274 Fund's net pension liability - ending (a) - (b)$2,782,644 $1,369,470 $2,448,821 85.99%92.63%85.85% $4,954,406 $4,619,838 $4,704,011 56.17%29.64%52.06% Notes to schedule: 12/31/201612/31/2017 Town of Trophy Club, Texas SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS Years Ended: Plan fiduciary net position as a percentage of the total pension liability Covered payroll Fund's net pension liability as a percentage of covered payroll 12/31/2018 1) This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is compiled, only available information is shown. 88Town Council Page 206 of 282 Meeting Date: March 24, 2020 1 $804,453 $809,057 1,053,745 970,682 - (1,544,038) (237,279)(49,303) 368,895 - (632,921) (450,100) 1,356,893 (263,702) 14,967,739 15,231,441 16,324,632 14,967,739 $658,543 $660,364 340,458 316,613 19,357 681,774 (632,921) (450,100) (11,788) (7,117) (582) (585) 373,067 1,200,949 13,116,278 11,915,329 $13,489,345 $13,116,278 $2,835,287 $1,851,461 82.63%87.63% $4,863,685 $4,523,041 58.30%40.93% 12/31/201412/31/2015 89Town Council Page 207 of 282 Meeting Date: March 24, 2020 9/30/2019 9/30/2018 9/30/2017 Actuarially determined employer contributions $736,208 $638,736 $598,176 $736,208 $638,736 $598,176 Contribution deficiency (excess)$- $- $- Annual covered payroll $5,640,011 $4,911,902 $4,559,463 13.05% 13.00% 13.12% Valuation Date: Notes Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Payroll, Closed Remaining Amortization Period 27 years Asset Valuation Method 10 Year smoothed market; 15% soft corridor Inflation 2.5% Salary Increases 3.50% to 10.5%, including inflation Investment Rate of Return 6.75% Retirement Age Mortality Other Information: Notes There were no benefit changes during the year. Town of Trophy Club, Texas SCHEDULE OF EMPLOYER CONTRIBUTIONS TO PENSION PLAN Years Ended: 1) This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is compiled, only available information is shown. NOTES TO SCHEDULE OF EMPLOYER CONTRIBUTIONS TO PENSION PLAN Actuarially determined contribution rates are calculated as of December 31 and become effective in January 13 months later. Experience-based table of rates that are specific to the City's plan of benefits. Last updated for the 2015 valuation pursuant to an experience study of the period 2010 - 2014 RP2000 Combined Mortality Table with Blue Collar Adjustment with male rates multiplied by 109% and female rates multiplied by 103% and projected on a fully generational basis with scale BB Contributions in relation to the actuarially determined contribution Employer contributions as a percentage of covered payroll 90Town Council Page 208 of 282 Meeting Date: March 24, 2020 9/30/2016 9/30/2015 1 $627,419 $642,631 $627,419 $642,631 $- $- $4,822,763 $4,617,652 13.01% 13.92% 91Town Council Page 209 of 282 Meeting Date: March 24, 2020 92Town Council Page 210 of 282 Meeting Date: March 24, 2020 1 Total OPEB liability Service cost $10,164 $12,386 Interest 6,033 6,400 Changes in benefit terms - - Differences between expected and actual experience - (887) Changes of assumptions 17,400 (16,237) Benefit payments, including refunds of participant contributions (924)(991) Net changes 32,673 671 Total OPEB liability - beginning 154,985 187,658 Total OPEB liability - ending (a)$187,658 $188,329 2 $4,619,838 $4,954,406 4.06%3.80% Notes to schedule: 1 2 This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is compiled, only available information is shown. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB statement No. 75 to pay related benefits. Covered payroll Total OPEB Liability as a percentage of covered employee payroll Years Ended: 12/31/2017 12/31/2018 Town of Trophy Club, Texas SCHEDULE OF CHANGES IN POSTEMPLOYMENT BENEFITS OTHER THAN PENSION (OPEB) LIABILITY AND RELATED RATIOS TEXAS MUNICIPAL RETIREMENT SYSTEM 93Town Council Page 211 of 282 Meeting Date: March 24, 2020 1 Total OPEB liability Service cost $5,179 $5,389 Interest 2,019 2,101 Changes in benefit terms - - Differences between expected and actual experience - - Changes of assumptions - - Benefit payments, including refunds of participant contributions - - Net changes 7,198 7,490 Total OPEB liability - beginning 44,561 51,759 Total OPEB liability - ending (a)$51,759 $59,249 2 $4,911,902 $3,662,902 1.05%1.62% Notes to schedule: 1 2 9/30/2018 9/30/2019 Town of Trophy Club, Texas SCHEDULE OF CHANGES IN POSTEMPLOYMENT BENEFITS OTHER THAN PENSION (OPEB) LIABILITY AND RELATED RATIOS POST EMPLOYMENT HEALTHCARE BENEFITS Years Ended: Covered payroll Total OPEB Liability as a percentage of covered employee payroll This schedule is presented to illustrate the requirement to show information for ten years. However, until a full ten-year trend is compiled, only available information is shown. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB statement No. 75 to pay related benefits. 94Town Council Page 212 of 282 Meeting Date: March 24, 2020 Revenues Property tax $2,156,919 $- $(2,156,919) Other revenue 57,571 101,011 43,440 2,214,490 101,011 (2,113,479) Expenditures Current: PID activities 46,667 26,875 19,792 Debt service: Principal 1,275,000 25,577 1,249,423 Interest and fiscal charges 892,823 2,134,996 (1,242,173) 2,214,490 2,187,448 27,042 - (2,086,437) (2,086,437) Net Change in Fund Balance $- (2,086,437) $(2,086,437) Beginning fund balance 3,882,225 $1,795,788 Notes to Required Supplementary Information 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). For the Year Ended September 30, 2019 Town of Trophy Club, Texas STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL PID No. 1 Ending Fund Balance Variance with Final Budget Original & Final Budget Positive Actual (Negative) Total Revenues Total Expenditures Revenues Over (Under) Expenditures 95Town Council Page 213 of 282 Meeting Date: March 24, 2020 96Town Council Page 214 of 282 Meeting Date: March 24, 2020 OTHER SUPPLEMENTARY INFORMATION COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES 97Town Council Page 215 of 282 Meeting Date: March 24, 2020 Cash and cash equivalents $593,073 $51,765 $12,268 Taxes receivable, net 72,500 43,782 - Due from other funds 649,095 - - $1,314,668 $95,547 $12,268 Liabilities Accounts payable $687 $3,090 $- Due to other funds - - - Total Liabilities 687 3,090 - Fund Balances Restricted for: Tourism 1,313,981 - - Public safety - - - Street maintenance - 92,457 - Court - - 12,268 Parks - - - Committed for: Recreation programs - - - 1,313,981 92,457 12,268 $1,314,668 $95,547 $12,268 See notes to the financial statements Technology Assets Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Sales Tax Total Assets Town of Trophy Club, Texas COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2019 Occupancy Tax CourtStreet MaintenanceHotel 98Town Council Page 216 of 282 Meeting Date: March 24, 2020 $17,768 $3,081 $479,295 $9,886 $1,167,136 - - - - 116,282 - - - - 649,095 $17,768 $3,081 $479,295 $9,886 $1,932,513 $- $53 $- $- $3,830 - - 258,831 - 258,831 - 53 258,831 - 262,661 - - - - 1,313,981 - - - 9,886 9,886 - - - - 92,457 17,768 - - - 30,036 - - 220,464 - 220,464 - 3,028 - - 3,028 17,768 3,028 220,464 9,886 1,669,852 $17,768 $3,081 $479,295 $9,886 $1,932,513 Court TotalSecurityGrant Recreation Programs Park Land Dedication 99Town Council Page 217 of 282 Meeting Date: March 24, 2020 Revenues Sales taxes $- $248,744 $- Occupancy tax 669,983 - - Charges for services - - - Fines and fees - - 2,449 Investment income 14,485 - - Other revenue 11,133 - - 695,601 248,744 2,449 Expenditures Current: Court - - 7,679 Tourism 141,261 - - Recreation - - - Public works - 223,475 - Capital outlay: Parks 31,045 - - 172,306 223,475 7,679 523,295 25,269 (5,230) Other Financing Sources (Uses) Transfers (out)- - - Total Other Financing Sources (Uses)- - - 523,295 25,269 (5,230) Beginning fund balances 790,686 67,188 17,498 $1,313,981 $92,457 $12,268 See notes to the financial statements Technology Court Town of Trophy Club, Texas COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Ending Fund Balances Hotel Net Change in Fund Balances Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Total Revenues Occupancy Tax Street Maintenance NONMAJOR GOVERNMENTAL FUNDS For the Year Ended September 30, 2019 Sales Tax 100Town Council Page 218 of 282 Meeting Date: March 24, 2020 $- $- $- $- $248,744 - - - - 669,983 - 5,680 - - 5,680 1,841 - - - 4,290 - - 11,870 - 26,355 - - - - 11,133 1,841 5,680 11,870 - 966,185 730 - - - 8,409 - - - - 141,261 - 6,307 - - 6,307 - - - - 223,475 - - 258,831 - 289,876 730 6,307 258,831 - 669,328 1,111 (627) (246,961) - 296,857 (3,000) - - - (3,000) (3,000) - - - (3,000) (1,889) (627) (246,961) - 293,857 19,657 3,655 467,425 9,886 1,375,995 $17,768 $3,028 $220,464 $9,886 $1,669,852 Security Court TotalGrant Recreation Programs Park Land Dedication 101Town Council Page 219 of 282 Meeting Date: March 24, 2020 Revenues Fines and fees $4,200 $2,449 $(1,751) 4,200 2,449 (1,751) Expenditures Municipal court 8,445 7,679 766 8,445 7,679 766 (4,245) (5,230) (985) $(4,245) (5,230) $(985) Beginning fund balances 17,498 $12,268 Notes to Supplementary Information 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). Town of Trophy Club, Texas SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL COURT TECHNOLOGY For the Year Ended September 30, 2019 Variance with Court Final Budget Technology (Negative) Original & Final Budget Net Change in Fund Balances Positive Total Revenues Total Expenditures Revenues Over (Under) Expenditures Ending Fund Balances 102Town Council Page 220 of 282 Meeting Date: March 24, 2020 Revenues Fines and fees $3,600 $1,841 $(1,759) 3,600 1,841 (1,759) Expenditures Municipal court 1,150 730 420 1,150 730 420 2,450 1,111 (1,339) Other Financing (Uses) Transfers (out)(3,000) (3,000) - Total Other Financing (Uses)(3,000) (3,000) - $(550) (1,889) $(1,339) Beginning fund balances 19,657 $17,768 Notes to Supplementary Information 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). Town of Trophy Club, Texas SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL COURT SECURITY For the Year Ended September 30, 2019 Net Change in Fund Balances Total Revenues Total Expenditures Revenues Over Expenditures Ending Fund Balances Original & Final Budget Variance with Court (Negative) Positive Final Budget Security 103Town Council Page 221 of 282 Meeting Date: March 24, 2020 Revenues Taxes $226,678 $248,744 $22,066 226,678 248,744 22,066 Expenditures Streets 217,092 223,475 (6,383) 217,092 223,475 (6,383) * 9,586 25,269 15,683 $9,586 25,269 $15,683 Beginning fund balances 67,188 $92,457 Notes to Supplementary Information 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). * Expenditures exceeded appropriations at the legal level of control. SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Net Change in Fund Balances Revenues Over (Under) Expenditures Town of Trophy Club, Texas Ending Fund Balances STREET MAINTENANCE For the Year Ended September 30, 2019 Variance with Total Revenues Street Positive Final Budget Original & Final Budget Maintenance (Negative) Total Expenditures 104Town Council Page 222 of 282 Meeting Date: March 24, 2020 Revenues Taxes $600,000 $669,983 $69,983 Investment income 5,000 14,485 9,485 Miscellaneous - 11,133 11,133 605,000 695,601 90,601 Expenditures General government 20,000 - 20,000 Tourism 115,200 141,261 (26,061) Capital outlay 50,000 31,045 18,955 185,200 172,306 12,894 419,800 523,295 103,495 $419,800 523,295 $103,495 Beginning fund balances 790,686 $1,313,981 Notes to Supplementary Information 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). Revenues Over Expenditures Net Change in Fund Balances (Negative) Ending Fund Balances Total Revenues Positive Occupancy Tax IN FUND BALANCE - BUDGET AND ACTUAL HOTEL OCCUPANCY TAX Final Budget Variance with Town of Trophy Club, Texas SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES Original & Final Budget Total Expenditures For the Year Ended September 30, 2019 Hotel 105Town Council Page 223 of 282 Meeting Date: March 24, 2020 Revenues Charges for services $8,500 $5,680 $(2,820) 8,500 5,680 (2,820) Expenditures Recreation 8,500 6,307 2,193 8,500 6,307 2,193 - (627) (627) $- (627) $(627) Beginning fund balances 3,655 $3,028 Notes to Supplementary Information 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). Original & Final Budget Recreation Total Expenditures Revenues Over Expenditures Total Revenues Variance with Final Budget Programs (Negative) Net Change in Fund Balances Ending Fund Balances Positive Town of Trophy Club, Texas SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL RECREATION PROGRAMS For the Year Ended September 30, 2019 106Town Council Page 224 of 282 Meeting Date: March 24, 2020 Revenues Taxes $2,253,064 $2,221,216 $(31,848) Intergovernmental 253,904 49,881 (204,023) Investment income 10,000 29,393 19,393 2,516,968 2,300,490 (216,478) Expenditures Debt Service: Principal 1,718,000 1,613,000 105,000 Interest and fiscal charges 752,278 664,951 87,327 Administrative charges 7,500 5,900 1,600 2,477,778 2,283,851 193,927 39,190 16,639 (22,551) Other Financing Sources (Uses) Transfers in 26,937 26,937 - 26,937 26,937 - $66,127 43,576 $(22,551) Beginning fund balances 430,094 $473,670 Notes to Supplementary Information 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). Total Other Financing Sources (Uses) Total Expenditures Revenues Over (Under) Expenditures Town of Trophy Club, Texas Net Change in Fund Balances Ending Fund Balances Total Revenues Final Budget Original & Final Budget Debt Positive SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DEBT SERVICE FUND For the Year Ended September 30, 2019 Variance with (Negative)Service 107Town Council Page 225 of 282 Meeting Date: March 24, 2020 Revenues Investment income $60,000 $149,562 $89,562 60,000 149,562 89,562 Expenditures General government - 6,623 (6,623) Capital outlay 3,218,030 2,339,286 878,744 3,218,030 2,345,909 872,121 (3,158,030) (2,196,347) 961,683 $(3,158,030) (2,196,347) $961,683 Beginning fund balances 5,764,419 $3,568,072 Notes to Supplementary Information 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). Town of Trophy Club, Texas SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended September 30, 2019 Ending Fund Balances Final Budget Variance with CAPITAL PROJECTS FUND Projects (Negative) Total Revenues Total Expenditures Revenues Over Expenditures Net Change in Fund Balances Original & Final Budget Capital Positive 108Town Council Page 226 of 282 Meeting Date: March 24, 2020 Revenues Investment income $500 $11,870 $11,370 Other revenue 120,000 - (120,000) 120,500 11,870 (108,630) Expenditures Current: Capital outlay 400,000 258,831 141,169 400,000 258,831 141,169 (279,500) (246,961) 32,539 Net Change in Fund Balance $(279,500) (246,961) $32,539 Beginning fund balance 467,425 $220,464 Notes to Supplementary Information 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). For the Year Ended September 30, 2019 Ending Fund Balance Variance with Final Budget Original & Final Budget Park Land Positive Dedication (Negative) Total Revenues Total Expenditures Revenues Over (Under) Expenditures Town of Trophy Club, Texas SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL PARK LAND DEDICATION 109Town Council Page 227 of 282 Meeting Date: March 24, 2020 110Town Council Page 228 of 282 Meeting Date: March 24, 2020 Cash and cash equivalents $- $- $34,436 $34,436 Receivables, net 87,563 - 43,158 130,721 Due from primary government - - 59,377 59,377 Total Current Assets 87,563 - 136,971 224,534 Capital assets: Non-depreciable 2,538,765 - - 2,538,765 Net depreciable capital assets 359,783 - - 359,783 Unamortized bond insurance 9,038 - - 9,038 Total Noncurrent Assets 2,907,586 - - 2,907,586 Total Assets 2,995,149 - 136,971 3,132,120 Liabilities Accounts payable and accrued liabilities - - 6,462 6,462 Due to primary government 119,875 136,180 - 256,055 Accrued interest payable 8,402 - - 8,402 Debt due within one year 105,000 - - 105,000 233,277 136,180 6,462 375,919 Noncurrent liabilities: Debt due in more than one year 2,153,791 - - 2,153,791 Advances from primary government - 386,503 - 386,503 2,153,791 386,503 - 2,540,294 Total Liabilities 2,387,068 522,683 6,462 2,916,213 Net investment in capital assets 639,757 - - 639,757 Restricted Public safety - - 130,509 130,509 Unrestricted (31,676) (522,683) - (554,359) Total Net Position $608,081 $(522,683) $130,509 $215,907 See Notes to Financial Statements. Town of Trophy Club, Texas COMBINING SCHEDULE OF NET POSITION DISCRETELY PRESENTED COMPONENT UNITS September 30, 2019 Total Assets Net Position 4B Tax Increment Crime Control Economic Reinvestment and Corporation Zone #1 Prevention 111Town Council Page 229 of 282 Meeting Date: March 24, 2020 Capital Grants and Contributions Component Units $816,011 $- $- $- Tax Increment Reivestment Zone #1 10,357 - - - Crime Control and Prevention 191,426 - - - Total Component Units $1,017,794 $- $- $- General Revenues: Property taxes Sales taxes Investment income Total General Revenues Change in Net Position Beginning Net Position Ending Net Position See Notes to Financial Statements. Town of Trophy Club, Texas COMBINING SCHEDULE OF ACTIVITIES DISCRETELY PRESENTED COMPONENT UNITS For the Year Ended September 30, 2019 Program Revenues Operating Charges for Grants and 4B Economic Corporation Functions/Programs Expenses Services Contributions 112Town Council Page 230 of 282 Meeting Date: March 24, 2020 $(816,011) $- $- $(816,011) - (10,357) - (10,357) - - (191,426) (191,426) $(816,011) $(10,357) $(191,426) $(1,017,794) - 74,939 - 74,939 497,487 5,087 244,325 746,899 5,454 - - 5,454 502,941 80,026 244,325 827,292 (313,070) 69,669 52,899 (190,502) 921,151 (592,352) 77,610 406,409 $608,081 $(522,683) $130,509 $215,907 Net (Expense) Revenue and Changes in Net Position and 4B Economic Reinvestment Tax Increment Crime Control Prevention TotalZone #1Corporation 113Town Council Page 231 of 282 Meeting Date: March 24, 2020 Cash and cash equivalents $- $- $34,436 $34,436 Receivables, net 87,563 - 43,158 130,721 Due from primary government - - 59,377 59,377 87,563 - 136,971 224,534 Current Liabilities Accounts payable and accrued liabilities - - 6,462 6,462 Due to primary government 119,875 136,180 - 256,055 Advances from primary government - 386,503 - 386,503 119,875 522,683 6,462 649,020 Restricted for: Public safety - - 130,509 130,509 Unassigned (32,312) (522,683) - (554,995) (32,312) (522,683) 130,509 (424,486) $87,563 $- $136,971 $224,534 See Notes to Financial Statements. Total Liabilities and Fund Balances Town of Trophy Club, Texas BALANCE SHEET DISCRETELY PRESENTED COMPONENT UNITS September 30, 2019 TotalCorporation Economic 4B Tax Increment Crime Control Assets Zone #1 Reinvestment and Prevention Total Fund Balances Total Current Assets Liabilities Fund Balances Total Liabilities 114Town Council Page 232 of 282 Meeting Date: March 24, 2020 Fund Balances $(424,486) Adjustments for the Statement of Net Position: Capital assets used in governmental activities are not current financial resources and, therefore, not reported in the governmental funds. Capital assets - non-depreciable 2,538,765 Capital assets - net depreciable 359,783 Other long-term assets are not available to pay for current-period expenditures and, therefore, are deferred in the governmental funds. Unamortized bond insurance 9,038 Some liabilities, including bonds payable and deferred charges, are not reported as liabilities in the governmental funds. Accrued interest (8,402) Non-current liabilities due in one year (105,000) Non-current liabilities due in more than one year (2,153,791) Net Position of the Discretely Presented Component Units $215,907 Town of Trophy Club, Texas RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION DISCRETELY PRESENTED COMPONENT UNITS September 30, 2019 115Town Council Page 233 of 282 Meeting Date: March 24, 2020 Revenues Sales taxes $497,487 $5,087 $244,325 $746,899 Property taxes - 74,939 - 74,939 Investment income 5,454 - - 5,454 502,941 80,026 244,325 827,292 Expenditures Economic development 706,911 - - 706,911 Community development - 10,357 - 10,357 Public safety - - 191,426 191,426 Capital outlay 261,010 - - 261,010 Debt service Principal 105,000 105,000 Interest and fiscal charges 99,023 99,023 1,171,944 10,357 191,426 1,373,727 (669,003) 69,669 52,899 (546,435) (669,003) 69,669 52,899 (546,435) Beginning fund balances 636,691 (592,352) 77,610 121,949 $(32,312) $(522,683) $130,509 $(424,486) See Notes to Financial Statements. STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Town of Trophy Club, Texas Net Change in Fund Balances Ending Fund Balances Economic Reinvestment Total Revenues DISCRETELY PRESENTED COMPONENT UNITS For the Year Ended September 30, 2019 Total Expenditures Excess of Revenues Over (Under) Expenditures 4B Tax Increment Total Crime Control and Corporation Zone #1 Prevention 116Town Council Page 234 of 282 Meeting Date: March 24, 2020 Amounts reported for governmental activities in the statement of activities are different because: Net changes in fund balances $(546,435) Governmental funds report capital outlays as expenditures. However, in the statement of activitites the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlay 261,010 Depreciation expense (8,177) Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Amortization of bond insurance (568) The issuance of long-term debt (e.g., bonds, leases, certificates of obligation) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when they are first issued; whereas, these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. Amortization of debt discount (1,332) Principal payments 105,000 Change in Net Position of the Discretely Presented Component Units $(190,502) Town of Trophy Club, Texas RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF THE DISCRETELY PRESENTED COMPONENT UNITS TO THE STATEMENT OF ACTIVITIES For the Year Ended September 30, 2019 117Town Council Page 235 of 282 Meeting Date: March 24, 2020 118Town Council Page 236 of 282 Meeting Date: March 24, 2020 Page 120 133 140 145 148 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. Demographic and Economic Information 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. Operating Information Revenue Capacity These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. STAT ISTICAL SECTION 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. 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 Financial Trends Contents These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. 119Town Council Page 237 of 282 Meeting Date: March 24, 2020 2010 2011 2012 2013 Governmental activities Net investment in capital assets 36,491,021$ 47,668,302$ 50,050,855$ 54,425,735$ Restricted 39,003 57,471 1,191,411 315,480 Unrestricted 4,569,344 2,689,482 2,158,558 2,896,674 Total governmental activities net position 41,099,368$ 50,415,255$ 53,400,824$ 57,637,889$ Business-type activities Net investment in capital assets -$ -$ -$ 52,848$ 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 36,491,021$ 47,668,302$ 50,050,855$ 54,478,583$ Restricted 39,003 57,471 1,191,411 315,480 Unrestricted 4,569,344 2,702,023 2,205,424 3,127,266 Total primary governmental net position 41,099,368$ 50,427,796$ 53,447,690$ 57,921,329$ Source: Town audited financial records The Town did not have business-type activities prior to fiscal year 2011. The Town implemented GASB Statement No. 68 in fiscal year 2015. The amounts for all prior fiscal years have not been restated for the effects of The Town implemented GASB Statement No. 75 in fiscal year 2018. The amounts for all prior fiscal years have not been restated for the effects of Town of Trophy Club, Texas NET POSITION BY COMPONENT Last Ten Fiscal Years (Unaudited) (accrual basis of accounting) Notes: The Town implemented the GASB Stateemnt No. 34 model of reporting fiscal year ending September 30, 2004. The Town implemented GASB Statement No. 65 in fiscal year 2014. The amounts for all fiscal years presented have 120 Town Council Page 238 of 282 Meeting Date: March 24, 2020 2014 2015 2016 2017 2018 2019 53,586,441$ 27,620,857$ 26,940,643$ 27,125,337$ 51,825,867$ 52,718,444$ 564,472 4,035,428 4,433,649 4,676,837 5,478,991 6,112,682 3,119,531 2,279,194 1,995,960 3,414,190 3,594,662 4,107,003 57,270,444$ 33,935,479$ 33,370,252$ 35,216,364$ 60,899,520$ 62,938,129$ 560,931$ 513,930$ 680,146$ 776,097$ 877,048$ 982,997$ (4,845) 163,047 171,755 350,752 633,294 741,325 556,086$ 676,977$ 851,901$ 1,126,849$ 1,510,342$ 1,724,322$ 54,147,372$ 28,134,787$ 27,620,789$ 27,901,434$ 52,702,915$ 53,701,441$ 564,472 4,035,428 4,433,649 4,676,837 5,478,991 6,112,682 3,114,686 2,442,241 2,167,715 3,764,942 4,227,956 4,848,328 57,826,530$ 34,612,456$ 34,222,153$ 36,343,213$ 62,409,862$ 64,662,451$ 121 Town Council Page 239 of 282 Meeting Date: March 24, 2020 2010 2011 2012 2013 Expenses Governmental activities: General government 1,717,961$ 2,807,237$ 1,984,137$ 1,902,621$ PID activities - - - - Public safety 2,211,108 2,275,778 2,392,798 2,898,737 Streets and infrastructure 1,335,674 1,372,501 1,829,799 2,234,140 Community development 353,894 345,804 485,614 599,872 Water and sewer - 617,001 92 261,106 Storm drainage - - - 227,067 Parks and recreation 1,596,619 1,844,573 1,564,660 2,037,590 Interest on long-term debt 391,593 558,473 498,569 489,337 Total governmental activities expenses 7,606,849 9,821,367 8,755,669 10,650,470 Business-type activities: Trophy Club Park - 98,935 130,185 98,718 Storm Drainage - 156,461 96,488 121,269 Total business-type activities expenses - 255,396 226,673 219,987 Total primary government expenses 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 688,554 669,827 854,349 793,205 Operating grants and contributions 385,429 340,748 342,894 952,648 Capital grants and contributions 323,822 10,627,098 2,682,302 4,793,132 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 - - - - - 253,034 325,380 506,205 2,417,305$ 13,295,494$ 5,335,199$ 8,013,475$ Town of Trophy Club, Texas CHANGES IN NET POSITION Last Ten Fiscal Years (Unaudited) (accrual basis of accounting) Total governmental activities program Total business-type activities program Total primary government program revenues 122 Town Council Page 240 of 282 Meeting Date: March 24, 2020 2014 2015 2016 2017 2018 2019 2,113,664$ 1,955,949$ 2,728,642$ 2,533,298$ 3,398,500$ 3,650,893$ - 2,736,000 2,122,901 48,520 2,850 26,875 3,125,577 2,306,609 3,540,703 4,607,380 4,429,744 5,109,461 1,764,396 1,716,531 1,878,119 1,728,809 1,671,692 2,371,290 620,209 436,090 640,404 738,659 695,637 717,215 311,677 319,054 319,054 - - - 231,370 234,339 234,287 - - - 2,555,844 2,253,982 2,652,384 2,761,053 2,644,329 2,871,283 412,561 469,923 496,019 2,365,059 2,771,762 2,663,286 11,135,298 12,428,477 14,612,513 14,782,778 15,614,514 17,410,303 134,625 123,445 109,325 116,477 93,677 122,186 103,001 205,331 174,499 120,295 129,722 131,370 237,626 328,776 283,824 236,772 223,399 253,556 11,372,924 12,757,253 14,896,337 15,019,550 15,837,913 17,663,859 895,508 702,578 605,558 - - - - - - - - - 783,359 752,102 607,453 1,576,453 1,816,239 1,590,375 423,960 550,495 141,071 581,633 443,752 3,019,160 761,196 1,254,997 - - - - 2,864,023 3,260,172 1,354,082 2,158,086 2,259,991 4,609,535 550,617 484,874 466,934 596,520 592,322 539,295 - - 61,106 - 94,521 3,360 550,617 484,874 528,040 596,520 686,843 542,655 3,414,640$ 3,745,046$ 1,882,122$ 2,754,606$ 2,946,834$ 5,152,190$ 123 Town Council Page 241 of 282 Meeting Date: March 24, 2020 2010 2011 2012 2013 Town of Trophy Club, Texas CHANGES IN NET POSITION Last Ten Fiscal Years (Unaudited) (accrual basis of accounting) Net (Expenses) Revenue Governmental activities (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 (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 3,889,157 4,480,999 4,897,615 5,334,140 Sales and mixed beverage taxes 674,131 631,561 754,105 781,054 Other taxes 537,644 648,400 706,065 828,338 Intergovernmental revenue 409,454 - - - Investment income 17,634 15,162 7,983 7,193 Miscellaneous revenues 126,949 333,497 301,269 379,896 Transfers - 75,819 64,382 49,644 Total governmental activities 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 5,654,969$ 6,109,697$ 6,667,037$ 7,330,621$ Change in Net Position Governmental activities 465,425$ 9,406,531$ 2,985,569$ 4,237,065$ Business-type activities - (78,103) 34,325 236,574 Total primary government 465,425$ 9,328,428$ 3,019,894$ 4,473,639$ Source: Town audited financial records The Town did not have business-type activities prior to fiscal year 2011. The Town implemented GASB No. 75 in fiscal year 2018. The amounts for all prior fiscal years have not been restated for the effects of this standard. Notes: The Town implemented the GASB 34 model of reporting fiscal year The Town implemented GASB Statement No. 65 in fiscal year 2014. The amounts for all fiscal years presented have been restated for the effects of this standard. The Town implemented GASB No. 68 in fiscal year 2015. The amounts for all prior fiscal years have not been restated for the effects of this standard. 124 Town Council Page 242 of 282 Meeting Date: March 24, 2020 2014 2015 2016 2017 2018 2019 (8,271,275)$ (9,168,305)$ (13,258,431)$ (12,624,692)$ (13,354,523)$ (12,800,768)$ 312,991 156,098 244,216 359,748 463,444 289,099 (7,958,284)$ (9,012,207)$ (13,014,215)$ (12,264,944)$ (12,891,079)$ (12,511,669)$ 5,955,398 9,364,705 9,701,080 10,398,462 10,578,398 11,150,826 965,969 1,104,298 1,217,693 1,306,243 1,150,073 1,271,864 1,020,554 1,027,407 1,255,995 1,376,352 1,486,952 1,581,721 - - - - - - 4,973 11,331 65,709 146,015 259,220 512,922 185,922 100,202 382,521 908,540 197,567 235,107 28,607 35,350 70,206 86,887 87,209 86,937 8,161,423 11,643,293 12,693,204 14,222,499 13,759,419 14,839,377 25 143 914 2,087 7,258 11,818 26,001 - - - - - (28,607) (35,350) (70,206) (86,887) (87,209) (86,937) (2,581) (35,207) (69,292) (84,800) (79,951) (75,119) 8,158,842$ 11,608,086$ 12,623,912$ 14,137,699$ 13,679,468$ 14,764,258$ (109,852)$ 2,474,988$ (565,227)$ 1,597,807$ 404,896$ 2,038,609$ 310,410 120,891 174,924 274,948 383,493 213,980 200,558$ 2,595,879$ (390,303)$ 1,872,755$ 788,389$ 2,252,589$ 125 Town Council Page 243 of 282 Meeting Date: March 24, 2020 2010 2011 2012 2013 General Fund Nonspendable for prepaids -$ 2,620$ 796$ 796$ Nonspendable for advances - - - - Assigned for capital expenditures - 228,138 228,138 228,138 Commtted for Police - - - - Unassigned - 2,412,034 2,902,168 2,398,330 Reserved 57,486 - - - Unreserved 2,056,334 - - - Total general fund 2,113,820$ 2,642,792$ 3,131,102$ 2,627,264$ All Other Governmental Funds Nonspendable -$ -$ -$ -$ Restricted for: Debt Service - 85,388 94,267 119,722 Capital Projects - 1,599,988 996,425 2,065,759 PID No. 1 - - - - Tourism - 1,890 1,321 87,225 Parks - - - - Street Maintenance - 34,750 75,999 46,700 Town Anniversary - 2,114 2,114 2,114 Water Services - 12,788 - - Court - - 49,962 60,927 Public Safety - - - 23,007 Committed for: Recreation programs - - - - Unassigned - (26,477) (257,350) (11,517) Reserved for: Debt service 83,067 - - - Prepaid items 1,567 - - - Encumbrances 48,000 - - - Capital projects funds 6,709,402 - - - Unreserved, reported in: Special revenue funds 151,970 - - - Total all other governmental funds 6,994,006$ 1,710,441$ 962,738$ 2,393,937$ Source: Town audited financial records (1) The Town implemented the GASB 54 during fiscal year ended September 30, 2011. Town of Trophy Club, Texas FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (Unaudited) (modified accrual basis of accounting) 126 Town Council Page 244 of 282 Meeting Date: March 24, 2020 2014 2015 2016 2017 2018 2019 796$ 1,816$ 54,397$ 91,278$ 44,474$ 3,184$ - - - - 386,503 386,503 228,138 228,138 - - - - - 200,000 189,475 183,858 182,718 177,130 2,816,087 3,261,235 3,950,290 4,335,983 4,826,823 5,256,436 - - - - - - - - - - - - 3,045,021$ 3,691,189$ 4,194,162$ 4,611,119$ 5,440,518$ 5,823,253$ -$ -$ -$ -$ 205,668$ -$ 118,092 118,542 143,174 309,043 262,277 473,670 4,505,273 1,694,546 8,764,936 6,285,515 5,764,419 3,568,072 4,229,068 3,869,425 3,832,851 3,882,225 3,972,188 283,481 475,748 564,363 399,883 790,686 1,313,981 - - - - 467,425 220,464 39,915 65,306 - 92,856 29,337 92,457 2,114 3,497 - - - - - - - - - - 46,253 43,422 39,668 37,819 37,155 30,036 93,746 134,265 210,189 71,259 9,886 9,886 2,812 3,395 2,269 7,307 3,655 3,028 (6,333) (6,327) (5,017) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5,085,353$ 6,761,462$ 13,589,007$ 11,036,533$ 11,452,733$ 9,683,782$ 127 Town Council Page 245 of 282 Meeting Date: March 24, 2020 2010 2011 2012 2013 Revenues Taxes Ad valorem taxes 3,890,927$ 4,457,829$ 4,916,886$ 5,330,778$ Sales and mixed beverage taxes 674,131 631,561 754,105 781,054 Franchise taxes 519,959 608,806 693,722 718,952 Occupancy 17,685 22,644 20,543 108,170 Licenses, permits & fees 719,333 798,520 1,128,234 968,285 Intergovernmental 237,756 375,749 342,894 888,896 Charges for services 868,571 1,140,556 670,186 592,146 Fines & Fees 120,151 167,461 157,143 171,579 Contributions 709,251 265,426 322,536 1,472 Investment Income 17,634 15,162 7,983 7,193 Grant revenue 171,698 318,954 1,400,252 490,850 Miscellaneous 126,949 335,796 82,057 388,894 Total revenues 8,074,045 9,138,464 10,496,541 10,448,269 Expenditures Current: General government 1,722,229 1,763,048 1,968,287 1,844,939 PID activities - - - - Public safety 2,169,477 2,237,263 2,408,103 2,905,923 Highways & streets 568,619 811,854 2,017,548 1,067,962 Community development 344,278 189,425 481,473 576,306 Water and sewer - 617,001 92 - Culture & recreation 1,393,751 1,523,133 1,659,656 1,491,496 Debt Service: Principal 540,000 803,000 885,000 2,294,000 Interest 371,721 551,955 475,266 456,417 Other charges 82,245 74,324 21,200 29,367 Capital Outlay 3,223,478 5,390,630 1,403,691 237,936 Total expenditures 10,415,798 13,961,633 11,320,316 10,904,346 Excess of revenues over (under) expenditures (2,341,753) (4,823,169) (823,775) (456,077) Town of Trophy Club, Texas CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (Unaudited) (modified accrual basis of accounting) 128 Town Council Page 246 of 282 Meeting Date: March 24, 2020 2014 2015 2016 2017 2018 2019 5,908,764$ 9,387,548$ 9,710,760$ 10,261,991$ 10,767,166$ 11,144,195$ 965,969 1,104,298 1,217,694 1,306,243 1,150,073 1,271,864 772,621 811,052 953,622 888,863 867,446 911,738 235,796 264,708 302,374 487,489 619,506 669,983 904,251 697,378 598,586 333,780 614,931 499,302 133,004 326,195 26,237 581,633 608,910 724,333 611,781 293,011 310,735 820,530 767,237 769,962 126,111 580,648 362,409 355,504 497,078 312,267 - - - - - - 4,974 11,330 65,708 146,015 259,213 512,922 61,383 147,691 7,942 - - - 485,380 100,202 407,418 158,540 715,535 402,894 10,210,034 13,724,061 13,963,485 15,340,588 16,867,095 17,219,460 1,947,650 2,273,447 2,349,120 2,191,140 2,404,704 3,164,364 - 314,344 81,793 44,984 2,850 26,875 2,918,484 2,896,632 3,187,064 4,117,992 4,441,873 4,872,242 517,964 516,035 566,927 179,448 340,910 414,938 587,760 479,477 576,508 582,259 449,178 568,239 - - - - - - 1,853,811 1,799,204 1,892,065 1,991,571 2,708,827 2,250,599 998,000 1,438,000 2,153,974 1,567,004 1,675,350 1,723,652 398,872 2,504,235 2,055,694 2,555,580 2,791,600 2,805,764 75,100 42,736 1,340,786 74,591 5,235 5,900 885,436 3,466,307 3,395,509 9,146,919 1,239,065 2,860,040 10,183,077 15,730,417 17,599,440 22,451,488 16,059,592 18,692,613 26,957 (2,006,356) (3,635,955) (7,110,900) 807,503 (1,473,153) 129 Town Council Page 247 of 282 Meeting Date: March 24, 2020 2010 2011 2012 2013 OTHER FINANCING SOURCES (USES) Proceeds from capital lease obligation - - - - Proceeds from contractual obligations 5,560,000 - - - Proceeds from bonds - 2,790,000 500,000 1,300,000 Premium on bonds - 118,904 33,794 Payment to refunded bond escrow agent - (2,825,503) - - Transfer from other funds 276,317 185,835 191,878 876,553 Transfer to other funds (276,317) (110,016) (127,496) (826,909) Total other financing sources (uses)5,560,000 159,220 564,382 1,383,438 NET CHANGE IN FUND BALANCES 3,218,247$ (4,663,949)$ (259,393)$ 927,361$ Debt service as a percentage of non-capital expenditures 12.68%15.81%13.72%25.79% Source: Town audited financial records CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (Unaudited) (modified accrual basis of accounting) Town of Trophy Club, Texas 130 Town Council Page 248 of 282 Meeting Date: March 24, 2020 2014 2015 2016 2017 2018 2019 - - - - 264,732 - 2,500,000 - 4,210,000 - - - 600,000 2,030,000 31,399,979 4,445,000 - - 50,329 - 5,020,788 128,317 - - - (2,026,710) (29,734,500) - - - 55,741 63,350 493,947 993,250 298,457 89,937 (27,134) (28,000) (423,741) (906,363) (63,817) (3,000) 3,178,936 38,640 10,966,473 4,660,204 499,372 86,937 3,205,893$ (1,967,716)$ 7,330,518$ (2,450,696)$ 1,306,875$ (1,386,216)$ 15.02%32.14%29.64%30.99%31.37%26.84% 131 Town Council Page 249 of 282 Meeting Date: March 24, 2020 132Town Council Page 250 of 282 Meeting Date: March 24, 2020 Less:Total Taxable Total Direct Fiscal Real Non Real Tax Exempt Assessed Tax Year Property Property Property Value Rate 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 2014 1,248,215,265 25,845,178 60,160,746 1,213,899,697 0.49930 2015 1,426,754,517 20,304,259 64,382,412 1,382,676,364 0.49000 2016 1,618,577,881 28,301,916 68,622,814 1,578,256,983 0.48400 2017 1,816,191,857 29,805,970 73,301,474 1,772,696,353 0.47300 2018 1,986,456,291 32,335,529 83,492,349 1,935,299,471 0.45144 2019 2,146,374,412 34,488,137 79,947,523 2,100,915,026 0.44644 Source:Denton & Tarrant County Central Appraisal District Certified Roll Note: Total Taxable Assessed Value is not adjusted for tax ceilings. Estimated Market Value Town of Trophy Club, Texas ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years (Unaudited) 133 Town Council Page 251 of 282 Meeting Date: March 24, 2020 Fiscal Operating Debt Service Total Town Northwest Trophy Club Trophy Club Denton Year Millage Millage Millage ISD MUD #1 MUD #2 County 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 2014 0.384300 0.115000 0.499300 1.452500 0.133390 - 0.284914 2015 0.380000 0.110000 0.490000 1.452500 0.133390 - 0.272200 2016 0.374000 0.110000 0.484000 1.452500 0.131140 - 0.262000 2017 0.363000 0.110000 0.473000 1.452500 0.127220 - 0.248409 2018 0.341442 0.110000 0.451442 1.490000 0.120210 - 0.237181 2019 0.336442 0.110000 0.446442 1.490000 0.116180 - 0.225574 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 of Trophy Club, Texas DIRECT AND OVERLAPPING PROPERTY TAX RATES Last Ten Fiscal Years (Unaudited) Overlapping Rates 134 Town Council Page 252 of 282 Meeting Date: March 24, 2020 Total Tarrant Tarrant Total Total Total Direct & Trophy Club Tarrant County County MUD #1 MUD #2 PID #1 ESD Overlapping PID #1 ESD County College Hospital Millage Millage Millage Rates 0.109140$ 0.264000$ 0.137670$ 0.227897$ 2.872230$ 3.018507$ 2.265560$ 3.223507$ 0.109250 0.264000 0.137640 0.227897 2.987570 N/A 2.390930 3.097687 0.109250 0.264000 0.148970 0.227897 2.994564 N/A 2.406594 3.107474 0.104000 0.264000 0.149500 0.227897 2.942300 N/A 2.395410 3.055197 0.087380 0.264000 0.149500 0.227897 2.985984 N/A 2.439094 3.098881 0.077270 0.264000 0.149500 0.227897 2.948860 N/A 2.401970 3.066757 0.072220 0.264000 0.149500 0.227897 2.925360 N/A 2.380720 3.043257 0.074450 0.254000 0.144730 0.227897 2.884309 N/A 2.358359 3.002206 0.068700 0.244000 0.140060 0.224429 2.861593 N/A 2.357323 2.976022 0.067190 0.234000 0.136070 0.224429 2.825456 N/A 2.339206 2.939885 Overlapping Rates 135 Town Council Page 253 of 282 Meeting Date: March 24, 2020 Percentage of Taxable Total Taxable Assessed Assessed Taxpayer Value Rank Value (1) Trophy Club 12 LLC 17,625,071$ 1 0.84% Trophy Club Equities LLC 8,207,623 2 0.39% Oncor Electric Delivery Co 7,990,320 3 0.38% 4663 Okeechobee Blvd. and Palm Beach Holdings 7,378,138 4 0.35% Clubcorp Colf TEX LP P/S 6,396,235 5 0.30% Armore II - Quorum LLC 6,037,763 6 0.29% Ashton Dallas Residential LLC 4,906,470 7 0.23% Trophy Club Real Estate LLC 4,537,447 8 0.22% Randall's Food & Drug, LP 2,952,680 9 0.14% JLIS LLC 2,945,472 10 0.14% MS & BS Investments, Inc - n/a n/a Wonderland Plaza - n/a n/a Scott, Larry P & Laurie Ann LLC - n/a n/a Drees Custom Homes LP - n/a n/a Harvey's Racquet Club Apartments, Ltd - n/a n/a CP Trophy Club LLC - n/a n/a RR Webster Family, LLC - n/a n/a STD TC Building LP - n/a n/a Totals 68,977,219$ 3.27% Source: Denton and Tarrant County Central Appraisal District (1) Total taxable value including real and personal property for tax year 2018 (fiscal year 2017) is $2,100,915,026 (2) Total taxable value including real and personal property for tax year 2010 (fiscal year 2009) is $840,801,505 2019 Town of Trophy Club, Texas PRINCIPAL PROPERTY TAXPAYERS Current Fiscal Year and Nine Years Ago (Unaudited) 136 Town Council Page 254 of 282 Meeting Date: March 24, 2020 Percentage of Taxable Total Taxable Assessed Assessed Value Rank Value (2) - n/a n/a - n/a n/a 4,731,860 9 n/a 6,000,000 5 n/a 6,629,584 2 n/a 6,000,000 5 0.71% - n/a n/a - n/a n/a 4,731,860 9 0.56% - n/a n/a 18,395,000 1 2.19% 6,629,584 2 0.79% 6,176,998 3 0.73% 6,016,687 4 0.72% 5,878,060 6 0.70% 5,875,000 7 0.70% 5,509,437 8 0.66% 4,347,980 10 0.52% 86,922,050$ 8.26% 2010 137 Town Council Page 255 of 282 Meeting Date: March 24, 2020 138Town Council Page 256 of 282 Meeting Date: March 24, 2020 Total Tax Collections in Fiscal Levy for Subsequent Year Fiscal Year Amount Percentage of Levy Years Amount Percentage of Levy 2010 3,864,014$ 3,836,568$ 99.29%25,754$ 3,862,322$ 99.96% 2011 4,446,960 4,414,699 99.27%25,723 4,440,422 99.85% 2012 4,858,136 4,838,092 99.59%13,713 4,851,805 99.87% 2013 5,259,719 5,244,699 99.71%7,742 5,252,441 99.86% 2014 5,904,591 5,869,976 99.41%26,189 5,896,165 99.86% 2015 6,665,433 6,642,558 99.66%14,249 6,656,806 99.87% 2016 7,477,394 7,456,542 99.72%13,166 7,469,708 99.90% 2017 8,188,616 8,153,915 99.58%10,781 8,164,696 99.71% 2018 8,627,946 8,614,737 99.85%2,176 8,616,913 99.87% 2019 9,027,118 8,992,174 99.61%- 8,992,174 99.61% Source: Denton County Tax Assessor Collector Total Collections to DateFiscal Year of the Levy Collected within the Town of Trophy Club, Texas PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years (Unaudited) 139 Town Council Page 257 of 282 Meeting Date: March 24, 2020 General Certificates Special Fiscal Obligation of Assessment Capital Year Bonds Obligation Bonds Premium Leases 2010 12,400,000$ 782,000$ -$ -$ 92,240$ 2011 11,833,750 709,000 - - 30,570 2012 11,505,149 634,000 - - - 2013 9,464,076 1,698,419 - - - 2014 9,085,567 4,212,132 - - - 2015 8,344,695 4,029,431 26,481,000 - - 2016 12,375,000 7,961,000 25,710,479 4,916,763 - 2017 11,450,000 12,068,000 25,406,475 4,754,458 - 2018 10,640,000 11,415,000 25,285,577 4,457,420 173,280 2019 9,805,000 10,637,000 25,260,000 4,160,382 88,205 (1) Personal Income and population found on Table 15 of the Statistical Section Town of Trophy Club, Texas RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years (Unaudited) Governmental Activities 140 Town Council Page 258 of 282 Meeting Date: March 24, 2020 Certificates Total Percentage of Primary of Personal Per Obligation Premium Government Income (2)Capita - -$ 13,274,240$ 4.92%1,618$ - - 12,573,320 3.69%1,531 - - 12,139,149 3.03%1,348 1,743,456 - 12,905,951 2.86%1,199 1,599,038 - 14,896,737 3.07%1,293 1,454,619 - 40,309,745 7.62%3,348 1,275,000 30,200 52,268,442 9.35%4,200 1,130,000 25,779 54,834,712 9.26%4,234 980,000 21,358 52,972,635 8.06%3,828 825,000 16,939 50,792,526 7.94%4,106 Business-Type Activities 141 Town Council Page 259 of 282 Meeting Date: March 24, 2020 Fiscal Year General Obligation Bonds Certificates of Obligation Special Assessment Bonds Percentage of Actual Taxable Value of Propertya Per Capitab 2010 12,400,000$ 782,000$ -$ 1.57%1,607$ 2011 11,833,750 709,000 - 1.44%1,528 2012 11,505,149 634,000 - 1.29%1,348 2013 9,464,076 1,698,419 - 1.08%1,037 2014 9,085,567 4,212,132 - 1.10%1,154 2015 8,344,695 4,029,431 - 0.89%1,028 2016 12,375,000 7,961,000 25,710,479 1.29%1,634 2017 11,450,000 12,068,000 25,406,475 1.33%1,890 2018 10,640,000 11,415,000 25,285,577 1.14%1,594 2019 9,805,000 10,637,000 25,260,000 0.97%1,653 a Property values are from table 5. b Populations are from table 12. Town of Trophy Club, Texas RATIO OF GENERAL BONDED DEBT OUTSTANDING Last Ten Fiscal Years (Unaudited) 142 Town Council Page 260 of 282 Meeting Date: March 24, 2020 Estimated Estimated Share of Debt Principal Percentage Overlapping Governmental Unit Outstanding Applicable Debt Debt repaid with property taxes: Denton County 645,305,000$ 2.08%13,453,432$ Northwest Independent School District 870,670,379 5.32273%46,343,403 Tarrant County 324,065,000 0.07%242,548 Tarrant County Hospital District 33,290,000 0.07%24,916 Trophy Club MUD #1 26,965,000 0.60%160,622 Subtotal, overlapping debt 1,900,295,379$ 60,224,921$ Town of Trophy Club, direct debt 49,862,382 100.00%49,862,382 Total Direct and Overlapping Debt Principal 1,950,157,761$ 110,087,303$ 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 therefore responsible for repaying the debt, of each overlapping government. Town of Trophy Club, Texas DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of September 30, 2019 (Unaudited) 143 Town Council Page 261 of 282 Meeting Date: March 24, 2020 144Town Council Page 262 of 282 Meeting Date: March 24, 2020 Year Estimated Populationa Total Householdsa Median Household Incomeb Total Personal Income Unemployment Ratec 2010 8,204 2,930 92,492$ 271,001,560$ 7.59 2011 8,210 3,179 107,150 340,629,850 7.09 2012 9,005 3,379 118,595 400,732,505 6.10 2013 10,760 3,680 122,539 450,943,520 5.65 2014 11,525 3,891 124,593 484,791,363 4.72 2015 12,040 4,153 127,391 529,054,823 3.88 2016 12,446 4,342 128,750 559,032,500 3.66 2017 12,950 4,435 133,457 591,881,795 3.38 2018 13,838 4,723 139,156 657,233,788 3.40 2019 12,369 4,490 142,483 639,748,670 3.10 Sources:a Estimated population using residential water connections b United States Census Bureau c Federal Bank of St. Louis Economic Research; Denton and Tarrant Counties' data averaged 2018. Town of Trophy Club, Texas DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years 145 Town Council Page 263 of 282 Meeting Date: March 24, 2020 Employer Employees Percentage of Total Town Employment Northwest Independent School District 419 20.95% Baylor Medical Center at Trophy Club 230 11.00% Trophy Club Country Club 220 11.50% Town of Trophy Club4 152 7.60% HG Sply Co.138 6.90% Tom Thumb 127 6.35% Bread Winners Cafe 72 3.60% Fellowship United Methodist Church 50 2.50% Premier Academy - Trophy Club 42 2.10% Trophy Lake Academy 33 1.65% Cristina's Mexican Restaurant 28 1.40% Total 1,511 75.55% (1) Employment data is not available prior to 2012. (2) Staff estimated total Town employment of 2,000 for fiscal year 2019 (3) Staff estimated total Town employment of 1000 for fiscal year 2013 (4) Includes Full Time, Part Time, and Seasonal 2019 Town of Trophy Club, Texas PRINCIPAL EMPLOYERS Current Year and Six Years Ago (1) 146 Town Council Page 264 of 282 Meeting Date: March 24, 2020 Employer Employees Percentage of Total Town Employment Northwest Independent School District 353 29.66% Trophy Club Country Club 169 14.20% Baylor Medical Center at Trophy Club 130 10.92% Tom Thumb 97 8.15% Town of Trophy Club 86 7.23% Cristina's Mexican Restaurant 47 3.95% Respiratory Sleep Solutions 42 3.53% Premier Academy - Trophy Club 40 3.36% Fellowship United Methodist Church 39 3.28% Church at Trophy Lake 30 2.52% 1,033 86.81% 2013 147 Town Council Page 265 of 282 Meeting Date: March 24, 2020 Function 2010 2011 2012 2013 2014 General Government and Adminstration 10 12 13 12 14 Public Safety 22 22 23 28 31 Streets 5 5 5 5 5 Parks and Recreation 11 11 16 16 17 Community Development 3 3 5 6 7 Total 50 53 62 67 74 Source: Departmental records Town of Trophy Club, Texas FULL-TIME TOWN GOVERNMENT EMPLOYEES BY FUNCTION Last Ten Fiscal Years (Unaudited) 148 Town Council Page 266 of 282 Meeting Date: March 24, 2020 2015 2016 2017 2018 2019 13 14 13 14 14 32 33 33 34 41 4 4 4 2 3 17 17 16 17 14 6 6 6 6 5 72 73 73 73 77 149 Town Council Page 267 of 282 Meeting Date: March 24, 2020 Function 2010 2011 2012 2013 Public Safety Police Number of stations 1 1 1 1 Number of police personnel 16 17 15 18 Number of arrests 125 128 102 101 Number of traffic stops 2,696 2,821 2,602 2,443 Fire Number of stations 1 1 1 1 Number of fire personnel 14 14 14 14 Number of calls answered 651 741 845 945 Developmental Miles of streets 39 42 43 43 Parks/Recreational Changes Parks 8 7 6 6 Park acreage 1,037 1,037 1,039 1,039 Source: Departmental records Town of Trophy Club, Texas OPERATING INDICATORS BY FUNCTION Last Ten Fiscal Years (Unaudited) 150 Town Council Page 268 of 282 Meeting Date: March 24, 2020 2014 2015 2016 2017 2018 2019 1 1 1 1 2 2 23 25 25 26 26 24 82 125 145 148 130 275 2,004 2,912 3,635 2,922 4,262 5,397 1 1 1 1 1 1 15 15 16 17 18 17 907 868 898 868 858 871 43 43 43 43 43 52 6 6 6 6 6 6 1,039 1,039 1,039 1,039 1,039 1,039 151 Town Council Page 269 of 282 Meeting Date: March 24, 2020 1 Trophy Wood Drive Trophy Club, Texas 76262Town of Trophy Club Legislation Details (With Text) File #: Version:22020-119-T Name: Status:Type:Agenda Item Draft File created:In control:3/19/2020 Town Council On agenda:Final action:3/24/2020 Title:General/Special Election Direction to Town Manager/Town Secretary to proceed with May 2, 2020 Election or postpone until November 3, 2020 (S. Norwood) Attachments:Gov. Proclamation Election.pdf Action ByDate Action ResultVer. General/Special Election Direction to Town Manager/Town Secretary to proceed with May 2, 2020 Election or postpone until November 3, 2020 (S. Norwood) Town Council Page 270 of 282 Meeting Date: March 24, 2020 March 18,2020 The Honorable Ruth R.Hughs Secretary of State State Capitol Room 1E.8 Austin,Texas 78701 Dear Secretary Hughs: FILED IN THE OFFICE OF THESECRETARyOFSTATE0:‘OMYCLOCK Secretary of State Pursuant to his powers as Governor of the State of Texas,Greg Abbott has issued the following: A proclamation suspending Sections 41.0052(a)and (b)of the Texas Election Code and Section 49.103 of the Texas Water Code to the extent necessary to allow political subdivisions that would otherwise hold elections on May 2,2020,to move their general and special elections for 2020 only to the next uniform election date,occurring on November 3,2020,without otherwise adjusting the term of office,and suspending Sections 31.093 and 42.0621(c)of the Texas Election Code to the extent necessary to require all county election officers,if requested by an affected political subdivision,to enter into a contract to furnish election services with any political subdivision who postponed their election to November 3,2020,under the authority of this proclamation. The original of this proclamation is attached to this letter of transmittal. Governor GOVERNOR GREG ABBOTT Attachment POST OFFICE Box 12428 AUSTIN,TEXAS 78711 512-463-2000 (VoICE)DIAL 7-1-1 FOR RELAY SERVICES Town Council Page 271 of 282 Meeting Date: March 24, 2020 PROCLAMATION BY THE (%!t1fltttLTt 1f f1 f Lxz TO ALL TO WHOM THESE PRESENTS SHALL COME: WHEREAS,Section 41.001(a)(2)of the Texas Election Code provides that a general or special election in this state shall be held on a uniform election date, and the next uniform election date is occurring on May 2,2020;and WHEREAS,Section 49.103 of the Texas Water Code provides that certain districts governed by this provision are required to hold director elections in May of each even- numbered year;and WHEREAS,Section 41.0052 of the Texas Election Code prescribes a procedure for a political subdivision to change a general election date, but the time for making such a change has expired;and WHEREAS,Section 31.093 of the Texas Election Code requires a county elections administrator to enter into a contract to furnish election services upon request of a political subdivision;and WHEREAS,Section 42.0621(c)of the Texas Election Code does not require a political subdivision to enter into a contract with a county or hold a joint election with a county on the November uniform election date;and WHEREAS,on March 13,2020,the Governor of Texas certified that the novel coronavirus (COVID-19)poses an imminent threat of disaster and,under the authority vested in the Governor by Section 418.0 14 of the Texas Government Code,declared a state of disaster for all counties in Texas;and WHEREAS,pursuant to Section 418.0 16 of the Texas Government Code,the Governor has the express authority to suspend the provisions of any regulatory statute prescribing the procedures for conduct of state business or the orders or rules of a state agency if strict compliance with the provisions,orders,or rules would in any way prevent,hinder, or delay necessary action in coping with a disaster. NOW,THEREFORE,I,GREG ABBOTT,Governor of Texas,under the authority vested in me by the Constitution and Laws of the State of Texas,do hereby suspend Sections 41.0052(a)and (b)of the Texas Election Code and Section 49.103 of the Texas Water Code to .the extent necessary to allow political subdivisions that would otherwise hold elections on May 2,2020,to move their general and special elections for 2020 only to the next uniform election date,occurring on November 3,2020,without otherwise adjusting the term of office.I further suspend Sections 31.093 and 42.0621(c)of the Texas Election Code to the extent necessary to require all county election officers,if requested by an affected political subdivision,to enter into a contract to furnish election services with any political subdivision who postponed their election to November 3,2020,under the authority of this proclamation. The authority ordering the election under Section 3.004 of the Texas Election Code is the authority authorized to make the decision to postpone its election in accordance with this proclamation. Current office holders will hold over to the extent authorized by Article XVI, Section 17 of the Texas Constitution. FILED IN THE OFFiCE OF THE SECRETARY OF STATE t(OcF.O’CLOCK MAR 18 2020Town Council Page 272 of 282 Meeting Date: March 24, 2020 Governor Greg Abbott March 1$,2020 Pro ctal?t atio,t Page 2 rE UTH R.HUGHS Secretary of State FILED IN THE OFFICE OF THESECRETARYOFSTATE —J-QIP!!rO’CLocK MAR 182020 IN TESTIMONY WHEREOF,I have hereto signed my name and have officially caused the Seal of State to be affixed at my office in the City of Austin,Texas,this the 18th day of March,2020. Governor of Texas ATTESTED BY: Town Council Page 273 of 282 Meeting Date: March 24, 2020 1 Trophy Wood Drive Trophy Club, Texas 76262Town of Trophy Club Legislation Details (With Text) File #: Version:22020-115-T Name: Status:Type:Agenda Item Draft File created:In control:3/18/2020 Town Council On agenda:Final action:3/24/2020 Title:Declaration of Local Emergency for the Town of Trophy Club to follow Denton County's Plan related to COVID-19 (Mayor Sanders). Attachments:Local Disaster 2020-02 Proclamation.pdf Action ByDate Action ResultVer. Declaration of Local Emergency for the Town of Trophy Club to follow Denton County's Plan related to COVID-19 (Mayor Sanders). Town Council Page 274 of 282 Meeting Date: March 24, 2020 TOWN OF TROPHY CLUB PROCLAMATION 2020-02 A PROCLAMATION DECLARING A LOCAL DISASTER FOR THE TOWN OF TROPHY CLUB, TEXAS ISSUED ON THE 24TH DAY OF MARCH 2020 THROUGH THE 14TH DAY OF APRIL 2020. WHEREAS, in December 2019 a novel coronavirus, now designated COVID-19, was detected in Wuhan City, Hubei Province, China. Symptoms of COVID-19 include fever, cough, and shortness of breath. Outcomes have ranged from mild to severe illness, and in some cases death; and WHEREAS, on March 11, 2020 the World Health Organization (WHO) declared COVID19 as a pandemic; and WHEREAS, on March 13, 2020 the President of the United States did find and proclaimed that the COVID-19 outbreak in the United States constitutes a national emergency; and WHEREAS, on March 13, 2020 the Governor of the State of Texas certified that COVID19 poses an imminent threat of disaster in the state and declared a state of disaster for all counties in Texas; and WHEREAS, on March 13, 2020 the County Judge of Tarrant County issued a Declaration of Local Disaster due to Public Health Emergency, the Tarrant County Commissioners issued a Renewal of the Declaration of Local Disaster due to a Public Health Emergency on March 17, 2020 and the First Amended Declaration of Local Disaster due to Public Health Emergency was issued on March 18, 2020; and WHEREAS, also on March 17, 2020 the County Judge of Denton County, Texas certified that COVID-19 poses an imminent threat of disaster in Denton County and declared a state of disaster for all of Denton County; and WHEREAS, the Mayor of the Town of Trophy Club, Texas has determined that extraordinary measures must be taken to respond quickly, prevent and alleviate the suffering of people exposed to and those infected with the virus, as well as those that could potentially be infected or impacted by COVID-19, and to protect or rehabilitate property; and, WHEREAS, the Town of Trophy Club entered into a joint resolution with Denton County to form an interjurisdictional Emergency Management Program, adopted through Trophy Club Resolution 2018-07 allowing the Town of Trophy Club to operate within the Interjurisdictional Emergency Management Pan; NOW THEREFORE, BE IT PROCLAIMED BY THE TOWN OF TROPHY CLUB: Town Council Page 275 of 282 Meeting Date: March 24, 2020 1. That a local state of disaster is hereby declared for the Town of Trophy Club, Texas, pursuant to section 418.108(a) of the Texas Government Code. 2. Pursuant to section 418.108(b) of the Government Code, this declaration of local disaster shall continue for a period through April 14, 2020 from the date of this declaration unless continued or renewed by the Town Council. 3. Pursuant to section 418. l08(c) of the Government Code, this declaration of local disaster shall be filed promptly with the Town Secretary, and shall be given prompt and general publicity. 4. Pursuant to section 418.108(d) of the Government Code, this declaration of local disaster activated the Town of Trophy Club's and Denton County's interjurisdictional emergency management program. 5. This Declaration enables the Town of Trophy Club to take any action authorized under Federal or State Law and/or the Disaster Declaration from the State of Texas and/or Denton County Commissioners Court adopted by Trophy Club Resolution 2018- 07. 6. That this proclamation shall take effect immediately from and after its issuance. DECLARED AND ORDERED this 24th day of March 2020. ________________________________ C. Nick Sanders, Mayor Town of Trophy Club, Texas ATTEST: _____________________________ Leticia Vacek, Town Secretary Town of Trophy Club, Texas Town Council Page 276 of 282 Meeting Date: March 24, 2020 1 Trophy Wood Drive Trophy Club, Texas 76262Town of Trophy Club Legislation Details (With Text) File #: Version:12020-095-T Name: Status:Type:Agenda Item Regular Session File created:In control:2/25/2020 Town Council On agenda:Final action:3/24/2020 Title:Discussion of items for Future Agendas to include agenda items for consideration on the April 14, 2020 Council Agenda and review Town Council Future Agenda items list (S. Norwood). Attachments:Town Council Future Agenda Items List March 24, 2020.pdf Action ByDate Action ResultVer. Discussion of items for Future Agendas to include agenda items for consideration on the April 14, 2020 Council Agenda and review Town Council Future Agenda items list (S. Norwood). Town Council Page 277 of 282 Meeting Date: March 24, 2020 Page 1 of 3 Town Council Future Agenda Items List (Updated 3/19/20) 1. Review negotiating with the Trophy Club Municipal Utility District No. 1 to transfer the title for the land that the Annex Building is built on and the maintenance building by the Wastewater Treatment Plant . ( Sanders & Shoffner 11/10/2015) (1-February 9, 2016) (2- May 10, 2016) (3-August 9, 2016) (4-November 8, 2016) (5-February 14, 2017) (6-May 23, 2017) (7-May 22, 2018) (8-August 28, 2018) (9-December 11, 2018) (10-April 9, 2019) (11- July 23, 2019) (12-October 22, 2019) (13-February 11 , 2020) (14-May 12, 2020) 1/12/2016 – At the January 12, 2016 Council meeting, Council made TCMUD No. 1 an offer regarding the Annex Building. 5/10/2016 - Town Manager Seidel advised that Town Staff are continuing to work on this item. 8/9/2016 - Mayor Sanders advised that several items have taken precedence and that this item can remain on the list until the applicable time to deal with it. 9/19/2016 – This item was scheduled to be placed on a future Joint Meeting agenda, tentatively for January 2017, with the TCMUD No. 1 Board of Directors. 11/8/2016 – Council consensus was to leave this item on the Future Agenda Items list. 2/20/2017 – Council moved this item to be discussed during the February 25, 2017 Council Retreat. 3/28/2017 – Mayor Sanders added the maintenance building by the Wastewater Treatment Plant to this item. 5/23/2017 - Mayor Sanders advised that his intent was that the Annex Building woul d be utilized for Town storage after Staff relocated into the new Town Hall facility. 5/22/2018 – Direction was given to place the above items on the Joint Session agenda between Council and the TCMUD No. 1 Board of Directors that would occur in July 2018. 8/28/2018 – There was no new update to provide. 12/11/2018 – Town Manager Class provided an update during Executive Session. 4/9/2019 – Town Manager Class provided an update during Executive Session. 7/23/2019 – Interim Town Manager Carroll provided an update during Executive Session. 10/22/2019 – Town Manager Norwood provided an update during Executive Session. 2/11/2020 – Mayor Sanders and Council Member Shoffner elected to form a Town Strategic Partnership Committee to work with the MUD and any other groups on strategic partnership items. 2/25/2020- Council Member Shoffner recommended adding his name and removing Greg Lamont’s name from 11/10/2015). 2. Receive an update from Town Staff regarding Entryway Monumentation and Landscaping for the Town of Trophy Club. (Sanders 2/27/2018) (1-May 22, 2018) (2-August 28, 2018) (3-December 11, 2018) (4-March 26, 2019) (5-June 25, 2019) (6-July 23, 2019) (7-October 22, 2019) (8-February 11 , 2020) (9-May 12, 2020) 5/22/2018 – Town Planner Payne provided an update regarding Entryway Monument signs, Wayfinding signs, and Parks signs. Council gave direction to bring back a plan for repairing and updating Parks monument signs and a plan for standardizing trailhead signs . 8/28/2018 – Town Planner Payne presented an update regarding Park signage. Council provided feedback on the design for Park signage. 12/11/2018 – Town Planner Payne provided an update and Council directed Staff to move forward with preparing an RFP for Parks signage with Town logos and without Town logos . Town Council Page 278 of 282 Meeting Date: March 24, 2020 Page 2 of 3 3/26/2019 – Town Planner Payne provided an update regarding entryway monumentation and wayfinding signage. Council directed Staff to move forward with entryway monumentation. 6/25/2019 – Town Planner Payne provided an update regarding entryway monumentation and Park signage. Council directed Staff to bring the item back for direction to allow the en- tire Council to be present. 7/23/2019 – Town Planner Payne provided an update regarding entryway monumentation and Park signage. Council recommended Staff reach out to NISD to work together to have monumentation by the schools , reach out to the developer of PD 30 to potentially have monumentation on Trophy Club Drive compliment PD 30 signage , and review having a sign with backlit lettering on Trophy Wood Drive. 10/22/2019 – Town Planner Payne provided an update regarding entryway monumentation. Council recommended that the Trophy Wood Drive monument sign be double sided and backlit, remove the Town obelisks on Trophy Club Drive, and include a monument sign on the northwest corner of Trophy Club Drive and State Highway 114. 2/11/2020 – Town Planner Payne provided an update regarding entryway monumentation. Town Council gave the Town Staff direction of looking at land issues, get additional pricing details for the signage and that Council was in favor of moving forward with allocating HOT funds for all four proposed entryway signs. 3. Discussion of and possible action between the Town and EDC 4B regarding long range planning to use the parcel between Bread Winners and Trophy Club Town Hall. (Sanders & Bone 7/24/2018) (1-October 23, 2018) (2-April 9, 2019) (3-July 23, 2019) (4-October 22, 2019) (5-February 11 , 2020) (6-May 12, 2020) 10/23/2018 – Council recommended giving the liaison direction during the Executive Ses- sion and that information could be provided to the EDC 4B through the liaison without a joint meeting. 4/9/2019 – Town Manager Class provided an update during Executive Session. 7/23/2019 – Interim Town Manager Carroll provided an update during Executive Session. 10/22/2019 – Town Manager Norwood provided an update during Executive Session. 2/11/2020 - There was no new update to provide. 4. Creation of a strategic plan for a percentage of funds set aside for Capital Replacement items. (Geraci & Sanders 8/27/2019) (1-February 1 , 2020) (2-May 12, 2020) 11/12/2019 – Mayor Sanders requested to have this item discussed at the January 25, 2020 Council Retreat. 2/11/2020 – There was no new update to provide. 2/25/2020 – Council Member Bone asked his name be added to this item. 5. Develop a strategic plan related to the Town’s Budget and work with each department head. (Geraci & Sanders 9/10/2019) (1-February 1, 2020) (2-May 12 , 2020) 2/11/2020 – There was no new update to provide. 6. Task the Town Attorney and Planning and Development Department to identify all Town situations that allow citizen petition where ministerial duty is required. (Shoffner & Sand- ers 10/8/2019) (1-January 14, 2020) (2-April 14, 2020) 2/11/2020 – There was no new update to provide. Town Council Page 279 of 282 Meeting Date: March 24, 2020 Page 3 of 3 7. Review amending the Meetings and Rules of Procedure to have a provision for excused absences. (Shoffner & Sanders 10/22/2019) (1-February 11, 2020) (2-May 12 , 2020) 2/11/2020 – Town Attorney Dodd was assigned to work on the rules of procedure for excus- ing absences for council. 2/25/2020 – Council discussion held on reviewing current Rules and needing two council members in support of adding an item to the Future Agenda Items List. 8. Receive an update on deed restrictions and potential rezoning of certain areas in Town. (Sanders 12/10/2019) (1-March 24, 2019) 2/11/2020 – There was no new update to provide. 9. Town Staff to draft and implement a Citizen’s Survey. (Monger 1/14/2020) (1 April 14, 2020) 2/27/2020 – Emails received by Council to add Council Member Monger’s name to replace Alicia Fleury’s name. 10. Town Staff to form a Citizen’s Loop Road Committee. (Monger1/14/2020) (1-April 14, 2020) 2/27/2020 - Emails received by Council to add Council Member Monger’s name to replace Alicia Fleury’s name. 11. Select a median and install turf as a test site for future projects (Sanders 2/11/2020) (1- May 12, 2020). 12. Review and discuss Fire Department staff and response model. (Shoffner 2/11/2020) (1- May 12, 2020) 13. Town Staff to draft an incentive voucher for usage of HOT funds. (Shoffner & Bone 2/25/2020) (1-May 26, 2020) Town Council Page 280 of 282 Meeting Date: March 24, 2020 1 Trophy Wood Drive Trophy Club, Texas 76262Town of Trophy Club Legislation Details (With Text) File #: Version:12020-097-T Name: Status:Type:Agenda Item Regular Session File created:In control:2/25/2020 Town Council On agenda:Final action:3/24/2020 Title:Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551 (Texas Open Meetings Act), the Council will convene into executive session to discuss the following: a. Section 551.082 Deliberation regarding Economic Development Negotiations under Subsection (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations and Subsection (2) to deliberate the offer of a financial or other incentive to a business prospect that the Town seeks to have locate within the territory of the Town: North of State Highway 114, east of Trophy Club Drive and west of town limits regarding Town Center (Mayor Sanders). b. Section 551.074 Personel Matters to discuss or deliberate the appoinment of, employment, evaluation, reassignment dtuies, disciplilne or dismissla of a public officer or employee: Appointment to the Parks & Recreation Board (S. Norwood). Attachments: Action ByDate Action ResultVer. Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551 (Texas Open Meetings Act), the Council will convene into executive session to discuss the following: a. Section 551.082 Deliberation regarding Economic Development Negotiations under Subsection (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations and Subsection (2) to deliberate the offer of a financial or other incentive to a business prospect that the Town seeks to have locate within the territory of the Town: North of State Highway 114, east of Trophy Club Drive and west of town limits regarding Town Center (Mayor Sanders). b. Section 551.074 Personel Matters to discuss or deliberate the appoinment of, employment, evaluation, reassignment dtuies, disciplilne or dismissla of a public officer or employee: Appointment to the Parks & Recreation Board (S. Norwood). Town Council Page 281 of 282 Meeting Date: March 24, 2020 1 Trophy Wood Drive Trophy Club, Texas 76262Town of Trophy Club Legislation Details (With Text) File #: Version:12020-098-T Name: Status:Type:Agenda Item Regular Session File created:In control:2/25/2020 Town Council On agenda:Final action:3/24/2020 Title:Consider and take appropriate action regarding the Executive Session (S. Norwood). Attachments: Action ByDate Action ResultVer. Consider and take appropriate action regarding the Executive Session (S. Norwood). Town Council Page 282 of 282 Meeting Date: March 24, 2020