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03.23.2021 - Complete Agenda PacketTOWN OF TROPHY CLUB March 23, 2021 Town of Trophy Club Meeting Agenda Town Council 7:00 PM CALL TO ORDER AND ANNOUNCE A QUORUM 1 Trophy Wood Drive Trophy Club, Texas 76262 Council Chambers INVOCATION led by Pastor Barry Clingan of The Church at Trophy Lakes. PLEDGES led by Council Member Monger Pledge of Allegiance to the American Flag. Pledge of Allegiance to the Texas Flag. PUBLIC COMMENTS This is an opportunity for citizens to address the Council on any matter. The Council is not permitted to take discuss or take action on any presentations made to the Council. Presentations are limited to matters over which the Council has authority. Speakers have up to four (4) minutes or the time limit determined by the Presiding Officer. Each speaker must have submitted their request to speak via the Public Portal or have completed the Speakers Form. You may also email mayorandcouncil@trophyclub.org ANNOUNCEMENTS AND REPORTS Update regarding no new proposal submitted for property/land across Trophy Dog Park. (S. Norwood) 2. Business Spotlight — Art Z's "Kindness Is" Contest Winners. (S. Norwood) 3. Recognition from the Arbor Day Foundation designating Trophy Club as a 2020 Tree City USA Community. (S. Norwood) PROCLAMATION(S) 4. Issuance of Proclamation of Respect 2021-05 proclaiming Lou Opipare Day; Volunteer and First Paid Fire Chief for Trophy Club, TX. (Mayor Fleury) 5. Issuance of Proclamation 2021-06 proclaiming Arbor Day in Trophy Club, TX. (Mayor Fleury) CONSENT AGENDA All matters listed under consent agenda are considered routine by the Town Council and will be enacted by one motion. No separate discussion of these items will be held. Items removed from the consent agenda will be considered individually. 6. Take appropriate action regarding the Town Council Minutes dated February 23, 2021. (L. Vacek) 7. Take appropriate action regarding an Interlocal Cooperation Agreement between the Town of Trophy Club and Denton County for the Fiscal Year 2021-2022 Shared Governance Communications and Dispatch Services System for the Police Department and Fire/EMS Department. (S. Norwood). INDIVIDUAL ITEMS 8. Update from Dr. Warren, Northwest ISD Superintendent on the upcoming School Bond Program Election. (S. Norwood) 9. PUBLIC HEARING — Case SUP-21-001 (Wingstop Alcohol Sales) a. Conduct a Public Hearing for a Request by Wingstop for a Specific Use Permit for Alcoholic Beverage Sales for On -premise consumption in conjunction with a restaurant use, generally located approximately 150 feet east of Trophy Club Drive and approximately 275 feet north of SH 114. b. Discussion and recommendation regarding a Request made by Wingstop for a Specific Use Permit for Alcoholic Beverage Sales for On -premise consumption in conjunction with a restaurant use, generally located approximately 150 feet east of Trophy Club Drive and approximately 275 feet north of SH 114. 10. PUBLIC HEARING — Case SUP-21-002 (Blue 22 Alcohol Sales) a. Conduct a Public Hearing for a Request made by Blue 22 Sports Grill for a Specific Use Permit for Alcoholic Beverage Sales for On -premise consumption in conjunction with a restaurant use, generally located approximately 410 feet east of Trophy Club Drive and approximately 215 feet north of SH 114. b. Discussion and recommendation regarding a Request made by Blue 22 Sports Grill for a Specific Use Permit for Alcoholic Beverage Sales for On -premise consumption in conjunction with a restaurant use, generally located approximately 410 feet east of Trophy Club Drive and approximately 215 feet north of SH 114. 11. Take appropriate action regarding the Acceptance of the audit for the Town of Trophy Club — Fiscal Year 2020 Audit. (M. Erwin) 12. Update of Municipal Utility District and Town Subcommittee Meeting. (Mayor Fleury and Council Member Wilson) ADJOURN * The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meeting Act, LGC.551.071 CERTIFICATION I certify that the above notice was posted on the bulletin board at Trophy Club Town Hall,1 Trophy Wood Drive, Trophy Club, Texas, on Friday, March 19, 2021 by 5:00 p.m. in accordance with Chapter 551, Texas Government Code. Leticia Vacek, TRMC/CMC/MMC Town Secretary/RMO 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. Arbor Day Foundation Mayor Alicia Fleury 1 Trophy Wood Dr Trophy Club, TX 76262 Dear Tree City USA Supporter, On behalf of the Arbor Day Foundation, I write to congratulate Trophy Club on earning recognition as a 2020 Tree City USA. Residents of Trophy Club should be proud to live in a community that makes the planting and care of trees a priority. Trophy Club is one of more than 3,600 Tree City USA communities, with a combined population of 155 million. The Tree City USA program is sponsored by the Arbor Day Foundation in partnership with the U.S. Forest Service and the National Association of State Foresters. If ever there was a time for trees, now is that time. Communities worldwide are facing issues with air quality, water resources, personal health and well-being, and energy use. Trophy Club is stepping up to do its part. As a result of your commitment to effective urban forest management, you are helping to provide a solution to these challenges. We hope you are excited to share this accomplishment. Enclosed in this packet is a press release for your convenience as you prepare to contact local media and the public. State foresters coordinate the presentation of the Tree City USA recognition materials. We will forward information about your awards to your state forester's office to facilitate presentation. It would be especially appropriate to make the Tree City USA award a part of your community's Arbor Day ceremony. Again, we celebrate your commitment to the people and trees of Trophy Club and thank you for helping to create a healthier planet for all of us. Best Regards, Dan Lambe President cc: Marvin Athans enclosure For more information, contact: Lauren Weyers lweyers@arborday.org FOR IMMEDIATE RELEASE: ® Arbor Day Foundation° arborday.org Arbor Day Foundation Names Trophy Club Tree City USA® Lincoln, Neb. (February 25, 2021) Trophy Club, Texas, was named a 2020 Tree City USA® by the Arbor Day Foundation in honor of its commitment to effective urban forest management. Trophy Club achieved Tree City USA recognition by meeting the program's four requirements: a tree board or department, a tree care ordinance, an annual community forestry budget of at least $2 per capita and an Arbor Day observance and proclamation. "Tree City USA communities see the impact an urban forest has in a community first hand," said Dan Lambe, president of the Arbor Day Foundation. "The trees being planted and cared for by Trophy Club are ensuring that generations to come will enjoy to a better quality of life. Additionally, participation in this program brings residents together and creates a sense of civic pride, whether it's through volunteer engagement or public education." If ever there was a time for trees, now is that time. Communities worldwide are facing issues with air quality, water resources, personal health and well-being, energy use, and protection from extreme heat and flooding. The Arbor Day Foundation recently launched the Time for Trees initiative to address these issues, with unprecedented goals of planting 100 million trees in forests and communities and inspiring 5 million tree planters by 2022. With Tree City USA recognition, Trophy Club has demonstrated a commitment to effective urban forest management and doing its part to help address these challenges for Trophy Club residents now and in the future. More information on the program is available at arborday.org/TreeCityUSA About the Arbor Day Foundation: The Arbor Day Foundation is a million member nonprofit conservation and education organization with the mission to inspire people to plant, nurture, and celebrate trees. More information is available at arborday.org. Proclamation 2021-05 Tumn of Trupbp Club, Texag WHEREAS, today we recognize the many accomplishments and dedication of a Community Leader, Husband, Father, Grandfather and Friend, Lou Opipare; and WHEREAS, it is fitting for the Town of Trophy Club to recognize Lou Opipare as he gave wholeheartedly to the profession of Fire Chief. Lou served as a Volunteer Fire Chief for the Town of Trophy Club beginning in 1989; and in 1998 Lou became the first paid Fire Chief for the Town of Trophy Club until 2000; and extraordinary courage to save others; and WHEREAS, Lou gave selflessly of his time assisting with the Explorers Program, serving as Grand Marshal at the Trophy Club Parade, serving on the Planning & Zoning Commission, Zoning Board of Adjustment, Charter Review Commission, and elected to the Municipal Utility District Board of Directors; and WHEREAS, Lou exhibited extraordinary courage to save others and passed that on to the FireFighting Staff while serving as an instructor teaching and training many firefighters as well as Coaching 5-year olds in Soccer where he was carded and ejected from the Game; and WHEREAS, Lou led a Full Life of Adventure from the time Lou and Pam Married on August 29, 1970 to Celebrating their 501h Wedding Anniversary last year with their Daughter, Amanda Price who lives in Trophy Club and Son, Louis Opipare, III who lives in Richardson and their grandchildren Alex Opipare, Ethan Price, Madilyn Price; and NOW, THEREFORE, I, Mayor Alicia L. Fleury do hereby resolve that the Town of Trophy Club proclaim March 23, 2021 as: "'Lou Opipare Dap In Trophy Club and ask all citizens to live life to its fullest with dedication and kindness and further emulate Lou's actions. Let us all observe a moment of silence in the remembrance of Lou Opipare. PASSED AND APPROVED by the Trophy Club Town Council this 23rd day of March 2021. Alicia L. Fleury, Mayor ATTEST: Leticia Vacek, Town Secretary PROCLAMATION 2021-06 TOWN OF TROPHY CLUB, TEXAS A PROCLAMATION OF THE TROPHY CLUB TOWN COUNCIL PROCLAIMING APRIL 24, 2021 AS ARBOR DAY; RECOGNIZING THAT THE YEAR 2021 MARKS THE 149TH ANNIVERSARY OF ARBOR DAY. WHEREAS, in 1872, J. Sterling Morton proposed to the Nebraska Board of Agriculture that a special day be set aside for the planting of trees, and WHEREAS, the day set aside is called Arbor Day; being first observed with the planting of more than 1 Million Trees in Nebraska, and WHEREAS, 2021 marks the 149th Anniversary of Arbor Day and is now observed throughout the Nation and the World, and WHEREAS, trees reduce the erosion of our precious topsoil by wind and water, cut heating and cooling costs, moderate the temperature, clean the air, produce life-giving oxygen, and provide habitat for wildlife, and WHEREAS, trees are a renewable resource providing paper, wood for our homes, fuel forour fires, provide shade and beauty to our community, and WHEREAS, trees are a source of joy and spiritual renewal wherever they are planted, NOW, THEREFORE, I, MAYOR ALICIA FLEURY, IN CONJUNCTION WITH THE TROPHY CLUB TOWN COUNCIL DO HEREBY PROCLAIM: "APRIL 24, 2021 AS ARBOR DAY IN TROPHY CLUB, TX" And urge all citizens to celebrate Arbor Day and to support efforts to protect our trees and woodlands by planting more trees to promote the well-being of our generation and future generations. PASSED AND APPROVED on March 23, 2021 by the Trophy Club Town Council. Attest: Leticia Vacek, TRMC/CMC/MMC Alicia Fleury, Mayor Town Secretary/RMO TOWN OF TROPHY CLUB TOWN COUNCIL REGULAR SESSION MINUTES Tuesday, February 23, 2021; 7 PM The Trophy Club Town Council met in a Regular Session on Tuesday, February 23, 2021. The meeting was held at Town Hall, 1 Trophy Wood Drive in the Council Chambers. TOWN COUNCIL MEMBERS PRESENT: Alicia L. Fleury Mayor Greg Lamont Mayor Pro Tem, Place 1 Greg Wilson Council Member, Place 2 Sean Bone Council Member, Place 3 Karl Monger Council Member, Place 4 Michael Geraci Council Member, Place 5 Philip Shoffner Council Member, Place 6 STAFF PRESENT: Steve Norwood Town Manager Wade Carroll Assistant Town Manager Leticia Vacek Town Secretary/RMO David Dodd Town Attorney Patrick Arata Police Chief Jack Taylor Fire Chief Tony Jaramillo Director of Parks and Recreation Mike Erwin Finance Manager Jill Lind Communications & Marketing Manager Haley Archer Human Resources Manager Sharon David Records Analyst CALL TO ORDER Mayor Fleury called the meeting to order at 7:00 pm and noted a quorum was present with Mayor Pro Tem Lamont, Council Members Wilson, Bone, Monger, Geraci and Shoff ner. INVOCATION Mayor Fleury asked for continued prayers for the victims affected by the COVID-19 Pandemic as observed by lowering the Town's Flags at half-mast. The Invocation was delivered by Pastor Joel Quile who prayed for the families that have lost loved ones and those in direct contact of the Pandemic, including Police, Firefighters, EMT, Nurses, Doctors, Social Workers, Teachers and all those helping others that are hurting and fighting this disease. He asked for protection, provision, and perseverance. He continued to pray for those without water and heat due to the recent snowstorm, and for protection over the Council and Staff serving the Town. PLEDGES The Pledges to the American Flag and Texas Flag were led by Council Member Bone. PUBLIC COMMENT(S) Dr. Ryder Warren, Northwest Independent School District Superintendent, thanked the Council for recognizing the BNHS Cheer Squad. He praised them for representing BNHS and the Town of Trophy Club. He also thanked the Council and Town Staff for their support during the recent Winter Storm, working through all the challenges and helping each other. He reported that NISD has called a Bond Election for May 2021 as the student growth continues. February 23, 2021 Page 1 of 7 ANNOUNCEMENT(S) AND REPORT(S) 1. Business Spotlight — Freeform Chiropractic — Dr. Colby King. (S. Norwood) Dr. Colby King, owner of Freeform Chiropractic, presented their services to include treatment of whiplash injuries, migraines, carpel tunnel, and sciatic nerve issues; with the practice concentrating on long term and corrective care. He shared the first visit includes a consult and exam, full set of x-rays to help diagnose if treatment is recommended or a referral to a specialist is needed. He shared their goal is to be a resource of health and education to the community, treating all ages from young kids to grandparents. He added he is available to provide presentations on a multitude of topics, including Stress Overload, Heart Health, and Sleep Insomnia. Mayor Fleury thanked Dr. King for his presentation on Sleep Insomnia at the Rotary Club. She also thanked Dr. King for his recent sponsorship with Magazine 76262 of local businesses and restaurants that benefit the Roanoke Food Pantry. Lastly, she shared she had been to Dr. King's practice and was pleased with the comprehensive consult and encouraged others to visit his clinic. 2. Recognition of the Trophy Club Fire Department's 2020 Achievement of Excellence in Fire Prevention presented by Tim Dedear, TXFMA Committee Chair, Texas Fire Marshal's Association (S. Norwood) Mr. Tim Dedear, Chairman of the Achievement of Excellence in Fire Prevention Award, explained that said award recognizes organizations based upon their performance, excellence, and Fire Prevention Program. An Applicant must receive 125 points for a Bronze Level, 150 points for a Silver Level and 175 points for a Gold Level out of a possible 200 points. The scoring is based upon the authority, organization and ethics of the Fire Department, the Fire/Life Safety Programs, performance metrics, web -based communication, certification, education and development of staff, professional organizations involvement, fire prevention legislation and/or ordinances adopted Codes. With a total of 176 points received, Mr. Dedear presented the Trophy Club Fire Department with the 2020 Achievement of Excellence in Fire Prevention - Gold Level Award, stating there are few Gold Levels within the State of Texas. He stated this is a huge honor for the Trophy Cub Fire Department and looks forward to presenting said Award at the next TFMA Conference. Chief Taylor thanked Mr. Dedear for this prestigious award as well as recognizing Deputy Chief Fire Marshal Cochran for his outstanding job in putting together a program that includes fire prevention, public education, and fire investigation. He added the Fire Department has been working hard on these programs and is a credit to the entire Fire Department. Mayor Fleury thanked the Fire Department and expressed her appreciation to Deputy Chief Fire Marshal Cochran for his work with the Fire Prevention Programs. 3. Recognition of the BNHS Competition Cheer Team for UIL 6A Division 2 Spirit State Champions (Mayor Fleury) Mayor Fleury recognized NISD Superintendent Dr. Warren, BNHS Principal Dr. Myers, BNHS Assistant Principal Dr. Deardorff, Coaches Broadstreet & Thornton and the BNHS Competition Cheer Team for their hard work and dedication in practicing and perfecting their chats, stunts, and routines and winning the Spirit State Champion Award. Coach Broadstreet thanked the Council for their recognition and support from the Community. Coach Thornton praised the team for their dedication during the Pandemic and incredible hearts. Each team member was introduced and thereafter, Mayor Fleury presented the team with a Certificate and Street Sign made in honor of the award received. 4. Update on Winter Storm Energy, Water, Gas, Streets, etc., affecting Trophy Club. (S. Norwood) Town Manager Norwood gave an update on the recent Winter Storm, stating the last 7-9 days have been quite chaotic, with an assessment of damages received daily. He reported on the many challenges communities faced while there were millions without heat/water and all 254 Texas Counties were under a Winter Weather Warning, an occurrence that has never happened before. He commented on ERCOT taking a large amount of abuse and expects this to be a hot topic in the legislative session. He stated the TC Fire Department responded to six times the amount February 23, 2021 Page 2 of 7 of calls, with several structural fires and three deaths within the Community. The Police Department minimized routine stops in order to be available for accident calls received. The Town was extremely fortunate to have minimal damage and reported the MUD did not have any water main breaks. He praised Mayor Fleury's assistance in providing and delivering meals and that Staff will hold a debriefing meeting for ideas on how the Town can be better prepared in situations such as this one. He mentioned Council Member's Shoffner's idea of using trucks to handle minor snow shoveling to the critical areas within the Town. He stated the Team responded very well, and was very proud of how things were handled. He also reported on the total State Wide Damage of $20 billion plus. He asked each Department to give a brief update. Chief Arata reported the Police Department conducted pre -planning meetings prior to the storm, working with other departments, parked % of their fleet to utilize the all -wheel drive vehicles, contacted vendors to secure plenty of fuel, minimized routine stops and responded to over 200 "911" Calls. He added they also assisted the Fire Department and thanked Town Manager Norwood for helping staff stay in local hotels to be close to work. Lastly, he added having to forward complaints to the Attorney General Office regarding price gouging. Chief Taylor thanked the Police Department for their assistance during the storm. He reported the Fire Department took preparation and thanked Town Manager for the approval of up staffing by one to their Team. There were over 90 water related responses, two structure house fires, with $350,000 in property saved, as well as the last 10 days almost $1 million of property saved. He added that despite staff's challenges at home, no injuries occurred with no staff calling in. He also praised the Community Moms for helping raise awareness for children to stay off the area lakes and ponds. Council Member Monger inquired of the Durango Fire salvaging. Chief Taylor stated the Team did respond with fighting the fire but also providing a Salvage Rescue, which includes covering up property and salvaging the property within the home. Parks & Recreation Director Jaramillo reported preparation for the Parks Department took place by turning off the pressurized main lines to the Parks. Regarding pool preventative maintenance, staff performed same prior to the season finishing, turning off the components in the competition pump room. He reported there were three minor breaks at the competition pool. He stated that they turned off over 100 backflow lines that prevented major pipe breakage and congratulated his entire Team for their hard work and ensuring minimal damage. Human Resources Manager Archer shared that despite power outages, HR worked remotely to assist with data entry on payroll, answer questions received and was happy to report there were no accidents involving Town Staff, autos or property. Finance Manage Erwin reported the Finance Team worked hard to ensure payroll was completed with no issues, while Staff monitored bank and treasury functions. He praised his Team for all their hard work. Town Secretary Vacek reported Records Analyst David and herself worked remotely through the power outages and were able to create the agenda packet for the Council Meeting. She thanked Council Member Bone and his wife Mindi for the use of their home to shower as all area hotels were booked and were without water and electricity. She also thanked Mayor Fleury for posting the list of open restaurants within Trophy Club as they frequented all during the Winter Storm. Town Manager Norwood praised Communications and Marketing Manager Jill Lind for a great job keeping communication linked to all residents, council and staff. Communications and Marketing Manager Lind reported activating communications through social media, and utilized TC Alerts, which was previously launched in February. She added TC Alerts reached over 5,000 residents. Over 35 emergency alerts resulted in 210,000 messages via texts, emails, and phone calls. Mrs. Lind shared stats of over 20,000 visits to the TC Website, with Facebook engagement up by 43%, as well as collaborating and sharing February 23, 2021 Page 3 of 7 helpful content received from the Texas Association of Municipal Information Officers. She also thanked Mayor Fleury and Council for sharing content to help communicate with the residents. Assistant Town Manager Carroll reported the Streets Department kept a very busy pace, sanding over 7.5 yards of sand and 35 bags of ice melt in 25 different locations, specifically intersections, inclines and roundabouts. He stated their truck encountered issues and called upon the assistance of the City of Keller. Keller was able to drop 11 cubic yards of sand. He stated the Streets Department worked 12-hour shifts, from Sunday to Thursday, with one staff member on shift 24/7, staying at a local hotel answering emergency calls. Due to the recent structure fire, a lot of water was dropped, which turned to ice. He shared that the IT Department never lost connectivity except the Police Department losing internet connection in a few offices that were not being used over the weekend which were restored this past Monday. He also reported power was lost at Town Hall and used half of the 500-gallon tank of generator fuel. A complete inspection of Town Hall has been performed, with no leaks detected. He commented on the scarcity of street sweepers and that Staff were using electric brooms to push the sand to the gutters and will pick up sand particles manually to clean the streets. He praised the Streets Team for their amazing work. Mayor Fleury thanked everyone for the Town updates and working through this difficult time and commented on having a winterized water plant and helping answer all the calls pertaining to water. During this Historical Weather Event, Town Staff did a fabulous job. She added as Kindness Month comes to an end, how wonderful it was to see neighbors and all residents sharing groceries, helpful tips, making deliveries, and supporting each other with their whole heart. Mayor Fleury reminded everyone of the Virtual Fun Run, where 100% of the proceeds support our Soldiers and asked that we end the month strong. Council Member Shoffner thanked Mayor Fleury and Town Staff for their tireless efforts, and also thanked the MUD for the treatment of the Town's Water. He stated that he felt the pride to live in a community that was self -sustained and rallied around each other. Council Member Geraci offered thanks and his gratitude to the Fire and Police Departments for wellness checks and seeing to the needs of the residents and engaging with the Community to keep everyone safe. Mayor Pro Tem Lamont added his praise for neighbors helping neighbors. 5. Recognition of the Winners of the Art Z "Kindness Is" Contest. (Mayor Fleury) Mayor Fleury reported the Art Z "Kindness Is" Contest has extended their deadline due to the recent storm, as students were unable to turn in their entries and looked forward to seeing this on the next Town Council Agenda. Announcement of Early Voting and Election Day Polling Site for Trophy Club at Town Hall from the May 1, 201 General Election. (Mayor Fleury) Mayor Fleury stated Town Secretary Vacek had submitted a Staff Report and asked a Committee to meet to determine the best place for Trophy Club Voters as they are sent to different polling sites that changes depending on which entity is conducting an election. Discussions took place with Denton and Tarrant Counties however, it is up to each entity to request a voting location. The best solution recommended was Town Hall, and noted the only elections that cannot be held within Town Hall are Presidential, Gubnatorial and State Constitutional, as county lines cannot be crossed. Mayor Pro Tern Lamont commented on this not costing the Town any money since the Town was able to cancel their General Election. He congratulated Mr. Dennis Sheridan to the Council in a few months and the re-election of Council Member Monger. Mayor Fleury concurred that no cost will be incurred during this election. She added that the Town would not be holding an Election due to Council Member Monger and Dennis Sheridan being unopposed. She added her congratulations to Mr. Sheridan and Council Member Monger, and announced the swearing in ceremony would be held on May 11, 2021. Town Secretary Vacek reported she spoke with Tarrant County today and they will use Town Hall for Election Day in May and will pay the Town $500. PROCLAMATION: February 23, 2021 Page 4 of 7 7. Extending Mayoral Proclamation 2021-04 declaring a Local state of disaster for public health emergency through Denton County for the Town of Trophy Club and exempting bidding requirements of items necessary to protect the public health or safety of Town Residents, if necessary. (Mayor Fleury) Mayor Pro Tern Lamont made a motion to approve Mayoral Proclamation 2021-04 declaring a Local State of Disaster for public health emergency through Denton County for the Town of Trophy Club and exempting bidding requirements of items necessary to protect the public health or safety of Town Residents, if necessary and extending for an additional 30 days. Council Member Geraci seconded the motion. The motion carried unanimously. Motion: 7-0-0 CONSENT AGENDA: 8. Take appropriate action regarding the Town Council Minutes dated February 9, 2021. (L. Vacek) 9. Issuance of an Order/Ordinance 2021-06 Canceling the Town of Trophy Club's General Election called for May 1, 2021 and Declaring the Unopposed Council Candidates Elected of Karl Monger, Place 4, and Dennis Sheridan, Place 3 (L. Vacek) Mayor Pro Tern Lamont moved to approve consent agenda items 8 and 9. Council Member Bone seconded the motion. The motion carried unanimously. Motion: 7-0-0 INDIVIDUAL ITEMS: 10. Discussion of Future Agenda Items. (S. Norwood) Town Manager Norwood reported on the following items: Entryway Monumentation — the Public Arts Subcommittee is looking at entryway signage statues with an emphasis on recognizing historical golf figures who have had a major impact on Trophy Club. Develop a Strategic Plan — Staff is reviewing the Budget Process, which will include a Financial Strategic Plan that will forecast the next 3-5 years and consider the impacts of adding additional staff such as one or two Police/Fire, ongoing expenses, tax rate, sales tax, etc. Implementation of a Citizen's Survey — Mr. Norwood stated that plans are to send this out to citizens in March, with results due back in April and a report to Council in May. Hazardous Mitigation Plan with the MUD — Mr. Norwood reported that Staff is working on the plan with Council of Governments (COG) at no cost to the Town. He added that if the Town were to use an independent group, such as Freese and Nichols, the cost would roughly cost $15,000 - $20,000. Mayor Pro Tern Lamont recommended adding the Golf Cart Ordinance to the Future Agenda Items List to be reviewed for any State Law changes. Mayor Fleury commented that Girl Scout Abby Eskew, recent guest speaker at the February 9, 2021 Town Council, would be happy to hear this. She added that Ms. Eskew will be kept apprised of any changes. 11. Discuss the creation of a Strategic Plan for the Town of Trophy Club. (Councilmembers Geraci and Wilson) February 23, 2021 Page 5 of 7 Town Manager Norwood said 70%-75% of identifying key components within the budget has been performed. He noted when there is one revenue source that makes up 80% of total revenue, and what is done with this revenue is critical. He said he was not suggesting a tax rate increase but making Council aware of what happens on the expense side (i.e. personnel makes up 80% of total expenses) and as enhancements are made, and what is done with the revenue side is critical. He commented that Trophy Club does not have a large sales tax base or other incomes coming in like other cities, and does not expect a decrease in health insurance and workers' compensation rates. He also commented on the $25,000 additional expense to build a home due to supply costs and noted building activity within the Town. He stated all of this information will be listed in the strategic plan and is worthwhile to show the formulas on what happens when you add staff down the road to Year 2 and Year 3 with the budget and is a great exercise as well as a helpful policy tool for Council. Council Member Wilson stated he views a Strategic Plan completely different from a Budget Plan; as with a Strategic Plan it helps Council forecast when items will need to be included in a budget, when to purchase/replace the items and will the revenue be available. Town Manager Norwood agreed with Council Member Wilson's comments and reported the items just mentioned have been performed and completed. He stated that Parks & Recreation Director Jaramillo has an unbelievable Capital Replacement Program that lists every Park and Facility that displays all maintenance performed, future items that will be needed, and this is being done with the Fire and Police Departments which is incorporated into the Financial Plan. Council Member Wilson shared what he is hearing and what he is wanting is to see a draft at the end of Quarter 1 and Quarter 2 and laid out in Years 3-5, etc. Town Manager Norwood stated this would be presented to Council prior to the budget approval. Council Member Geraci stated he has been asking for a 3-5 year budget plan since serving on the Council, and would like to see it, in the First or Second Quarter. He asked for a comprehensive package laid out (i.e. when replacing cars and trucks, street repair). He also commented on what the impact of the Citizen's Survey will be and what will be explained to the citizens. He recommended that the budget impact with the MUD due to legislative session or other Towns, be discussed to help paint the picture before implementation takes place. Council Member Shoffner shared his opinion that Council cannot do their job based on "what if's", and do what exactly is planned and what is going to happen. He asked for the entire Capital Improvement Plan (CIP) be laid out and setting money back in the budget. Mayor Pro Tern Lamont moved to direct the Town Manager to develop a Three to Five Year Financial Strategic Plan for the Town by the end of June 30, 2021 and present it to the Council in a Workshop Format. Council Member Wilson seconded the motion. The motion carried unanimously. Motion: 7-0-0 12. Engagement of Fancher Legal, PLLC for the purpose of legal advice in water and utility district issues. (S. Norwood). Town Manager Norwood stated the intention is to bring Ms. Fancher on board as representation for water and environmental law advice. Dependent upon this year's legislative session; Ms. Fancher would monitor what is going on. He added that she recently located to North Texas from Austin. He also shared there are no issues pertaining with the MUD but her reputation and expertise will help protect the Town's interest as discussions with the MUD progress. He recommended having her retained, as there are few water attorneys available. Mayor Fleury verified the intent is to retain her prior to another municipality retaining her. Town Manager Norwood confirmed that was correct. Council Member Shoffner referenced the Staff Report narrowed the focus of the agreement with the MUD moving the Fire Department to the Town. He felt that Town Manager Norwood was describing a broader picture and asked February 23, 2021 Page 6 of 7 if this encompasses the MUD and/or specific water needs. Town Manager Norwood said the most pressing issues are the MUD, the Council and neighboring cities, what the Town can and cannot do, and what the effects will be. Council Member Shoffner stated that Council has not first heard from the Committee that will meet with the MUD or to retain an attorney based on the Committee presentation. He expressed his concern that Council needs a better understanding, possibly in a workshop session, of what is being recommended and the tax impact. He also questioned why this item was coming out of the Town Manager's Budget versus the Legal Services Budget. Town Manager Norwood confirmed this could be taken from Legal. Council Member Shoffner commented on how to safeguard from using these legal services too excessively and recommended putting a cap on the amount to be paid instead of authorizing a blank check. A discussion followed regarding tying this to the Town Manager's contingency of $25,000. It was confirmed that the Town Attorney's Legal Services Budget is at $5,000. Assistant Town Manager Carroll reported that when an item is tied to a line item, a budget amendment is performed and the budget is increased, thus, Council would see this during the budget process. Council Member Shoffner shared his concern that the Council needs to make that decision after hearing the Subcommittee's recommendation on what the direction should be. He also recommended a Subcommittee Workshop, as he is hearing talk that is being discussed on the MUD side that Council is unaware. Council Member Wilson agreed with Council Member Shoffner's point to schedule the next meeting to have the Subcommittee bring forth their recommendation in a Workshop Session. Mayor Pro Tem Lamont confirmed the Subcommittee is discussing fire related issues; and before any merger discussions, he prefers to review the financial figures. Mayor Pro Tem Lamont moved to retain the law firm of Fancher Legal, PLLC for the purpose of legal advice in water and utility district issues at the rates presented in the engagement letter dated January 28, 2021 for potential legal services to start when approved by Council. Council Member Monger seconded the motion. The motion carried unanimously. Motion: 7-0-0 13. Discussion of sign ordinance, Article 3.09 Signs. (S. Norwood). Mayor Pro Tem Lamont moved to direct Town Manager Norwood to send the Sign Ordinance to the Planning & Zoning Commission for their review and recommendations for any changes then send to Town Council for review. Council Member Bone seconded the motion. The motion carried unanimously. Motion: 7-0-0 ADJOURNMENT: Mayor Fleury adjourned the meeting at 8:29 pm. Alicia L. Fleury, Mayor Attest: Leticia Vacek, TRMC/CMC/MMC Town Secretary/RMO February 23, 2021 Page 7 of 7 TOWN OF C:,' T(7*f TROPHY CLUB 2 Trophy Wood Drive, Trophy Club, TX 76262 1 682.237.2900 1 info@trophyclub.org I trophyclub.org To: Mayor and Town Council From: Patrick Arata, Police Chief Jack Taylor, Fire Chief CC: Steve Norwood, Town Manager Leticia Vacek, Town Secretary Re: Shared Governance Communications & Dispatch Services with Denton County Date: March 23, 2021 Agenda Item: Consider and take appropriate action regarding an Interlocal Cooperation Agreement between the Town and Denton County for the Fiscal Year 2021-2022 Shared Governance Communications and Dispatch Services System for the Police Department and Fire/EMS Department; and authorizing the Mayor or her designee to execute all necessary documents (S. Norwood). Strategic Link: Safety & Security: Achieve exceedingly high standards for public safety and low crime rates. Background and Explanation: This Interlocal Agreement is for Police and Fire/EMS dispatch services for FY 2021- 2022. The agreement states Trophy Club Police Department has a total cost of $42,439.00 and the Fire/EMS Department has a total cost of $8,041.00, for a total of $50,480.00. Financial Considerations: Funding in the amount of $47,489 is available in the FY21 Police Budget and in the amount of $7,892 in the FY21 Fire and EMS Budgets. This is a savings of approximately $4,900.00. Legal Review: The Town Attorney has reviewed said item and concurs with staff recommendation. Board/Commission/ or Committee Recommendation: Not Applicable Staff Recommendation: Staff recommends Council approve the Interlocal Cooperation Agreement for Shared Governance Communications & Dispatch Services System. Attachments: Interlocal Cooperation Agreement for Shared Governance Communications & Dispatch Services System Page 1 of 1 STATE OF TEXAS § COUNTY OF DENTON § INTERLOCAL COOPERATION AGREEMENT FOR SHARED GOVERNANCE COMMUNICATIONS & DISPATCH SERVICES SYSTEM This Interlocal Cooperation Agreement for Shared Governance Communications and Dispatch Services System, hereinafter referred to as "Agreement", is made by and between Denton County, a political subdivision of the State of Texas, hereinafter referred to as the "County", and Name of Agency: Town of Trophy Club Fire & Police Departments hereinafter referred to as "Agency". WHEREAS, the County is a duly organized political subdivision of the State of Texas engaged in the administration of county government and related services for the benefit of the citizens of Denton County, Texas; and WHEREAS, the Agency is duly organized and operating under the laws of the State of Texas engaged in the provision of municipal government and/or related services for the benefit of the citizens of Agency; and WHEREAS, parties agree that the utilization of combined communications and dispatch services system will be in the best interests of both the County and the Agency, WHEREAS, the County and the Agency mutually desire to be subject to the provisions of the Interlocal Cooperation Act of the V.T.C.A. Government Code, Chapter 791; and NOW THEREFORE, the County and the Agency, for the mutual consideration hereinafter stated, agree and understand as follows: 1. PURPOSE. The Denton County Sheriff ("Sheriff") has the facilities to provide emergency telecommunications and dispatch services throughout Denton County. The Agency wishes to utilize the Sheriffs available telecommunications and dispatch services ("Services") during the term of this agreement. 2. ADVISORY BOARD. The Denton County Sheriffs Office will establish an Advisory Board for the Shared Governance Communication and Dispatch System "Advisory Board". The membership of the board shall be the Chief of each Agency, or designee. The Advisory Board may advise and make recommendations to the Sheriff and the Sheriff's Office on matters relating to the Communications Center, as well as the recommendations for the Annual Agency Workload and Cost Statistics, within the limitations set forth in paragraph 6.1, herein. 3. TERM OF AGREEMENT. The initial term of this Agreement shall be for a one-year period beginning October 1, 2021 and ending on September 30, 2022. 4. TERMINATION OF AGREEMENT. Either party may terminate this agreement, with or without cause, after providing ninety (90) days written notice to the other party. Interlocal Cooperation Agreement for 2021-22 Page 1 Shared Governance Communications & Dispatch Services System / Trophy Club fire & Police Departments 5. ANNUAL SERVICE FEE. Each Agency shall pay to the County a fee for services based on the workload generated by the Agency. 5.1. Agency shall pay to County the Total Amount on Exhibit "A ". 5.2. The Agency shall complete Exhibit "A ; Agency Payment Worksheet, to identify the payment terms preferred by Agency. Agency is responsible for sending payments to County 5.3. The fee for service will be based on the pro rata share of the workload generated by the Agency. 5.4. County agrees to provide Agency a proposed service fees for the next budget/fiscal year as agreed by the parties. 5.5 If this Agreement is terminated prior to the expiration of the term of the Agreement, payment shall be pro -rated by written agreement between the parties. 5.6 Dispatch costs for the upcoming fiscal year are calculated utilizing 50% of the approved Communications Budget for the current fiscal year and agency workload statistics from the previous fiscal year. Agency workload percentages are calculated by: 5.6.1. Determining the agency's percentage of total Calls For Service (CFS) 5.6.2 Determining the agency's percentage of total Officer Initiated Activity (OIA) 5.6.3 Averaging the values from # 5.6.1 & # 5.6.2 5.6.4 Determining the percentage of OIA that is Mobile Data Computer (MDC) activity 5.6.5 Determining agency OIA that is not MDC Activity 5.6.6 Determining adjusted percentage of OIA that is MDC activity by dividing value of # 5.6.5 by total OIA 5.6.7 Determining agency CFS that are public requests by subtracting agency assists or mutual aid calls from the agency's CFS 5.6.8 Determining adjusted percentage of total CFS that are public requests by dividing value of # 5.6.7 by total CFS 5.6.9 Determining agency workload percentage by calculating average of # 5.6.6 and # 5.6.8 5.6.10 Determining agency final cost by workload by multiplying value of # 5.6.9 against 50% of the approved Communications budget 6. COUNTY SERVICES AND RESPONSIBILITIES. The County agrees to provide the following services and responsibilities: 6.1 The Sheriff shall have the sole discretion as to the method of providing the Services including, but not limited to the order of response to calls, and shall be the sole judge as to the most expeditious and effective manner of handling and responding to calls for service or the rendering thereof. The Sheriff shall have the sole discretion as to the method and final decision regarding the annual workload and cost statistics. The Sheriff will devote sufficient time to insure the performance of all duties and obligations set forth herein. 6.2 County shall furnish full-time communications services including a twenty-four (24) hours a day, seven (7) days a week public safety answering point, radio services, dispatching services, or law enforcement transmission originating from AGENCY requesting law enforcement and fire Interlocal Cooperation Agreement for 2021-22 Page 2 Shared Governance Communications & Dispatch Services System / Trophy Club Fire & Police Departments protection services and access to local, regional, state, and national data bases and telecommunications systems. 6.3 The services provided by County include the following: 6.3.1 twenty-four (24) hours a day, seven (7) days a week public safety answering point; 6.3.2. receiving emergency and routine calls for law enforcement, fire, and medical services; 6.3.3 directing a response to said calls by dispatching the appropriate law enforcement, fire, and medical services; 6.3.4. providing on -going communication support to the emergency personnel in the field; and 6.3.5 updating, maintaining, and managing the County owned radio communications system, computer systems, support files, and resource materials necessary to accomplish the above. 6.4 County may add new Agencies not currently served by Denton County at the discretion of Denton County and the Denton County Sheriff's Office. 7. AGENCY RESPONSIBILITIES. The Agency agrees to the following responsibilities: 7.1 Providing accurate current GIS data of the corporate limits and extraterritorial jurisdiction of the Agency. 7.2 Furnish County with a current list of all Officers and Reserves authorized by Agency to use the communications system. 7.3 Agency is responsible for the costs and upgrades associated with maintaining Agency's communication equipment. 7.4 Agency agrees to abide by all laws of the United States and the State of Texas and all present or hereafter approved rules, policies and procedures of TLETS, NLETS, TCIC, NCIC and any other system now or in the future associated with TLETS concerning the collection, storage, processing, retrieval, dissemination and exchange of information for criminal justice purposes 7.5 Adherence to all Sheriff's Office communications rules and regulations. 7.6 Agency agrees to provide all necessary and required TLETS paperwork. See Exhibit «B„ 7.7 Appoint representative and agree to participate in the Advisory Board. 7.8 Agency is responsible for sending payments to County as more fully described in Exhibit "A" to this Agreement. 8. AGREEMENT. The parties acknowledge they have read and understand and intend to be bound by the terms and conditions of this Agreement. This Agreement contains the entire understanding between the parties concerning the subject matter hereof. No prior understandings, whether verbal or written, between the parties or their agents are enforceable unless included in writing in this agreement. This Agreement may be amended only by written instrument signed by both parties. 9. AGREEMENT LIASONS. Each party to this agreement shall designate a Liaison to insure the performance of all duties and obligations of the parties. The Liaison for each party shall devote sufficient time and attention to the execution of said duties on behalf of the Party to ensure full compliance with the terms and conditions of this Agreement. Interlocal Cooperation Agreement for 2021-22 Page 3 Shared Governance Communications & Dispatch Services System / Trophy Club fire & Police Departments 10. ASSIGNMENT. Neither party shall assign, transfer, or sub -contract any of its rights, burdens, duties, or obligations under this Agreement without the prior written permission of the other party to this Agreement. 11. AGENCY LIABILITY. The Agency understands and agrees that the Agency, its employees, servants, agents, and representatives shall at no time represent themselves to be employees, servants, agents, and/or representatives of the County. The Agency shall not be required to indemnify nor defend County for any liability arising out of the wrongful acts of employees or agents of County to the extent allowed by Texas law. 12. COUNTY LIABILITY. The County understands and agrees that the County, its employees, servants, agents, and representatives shall at no time represent themselves to be employees, servants, agents, and/or representatives of the Agency. The County shall not be required to indemnify nor defend Agency for any liability arising out of the wrongful acts of employees or agents of Agency to the extent allowed by Texas law. 13. DISPUTES/RECOURSE. County and Agency agree that any disputes or disagreements that may arise which are not resolved at the staff level by the parties should be referred to the Appointed Liaisons for each entity. Any further disputes arising from the failure of either Agency or County to perform and/or agree on proportionate reduction in fees shall be submitted to mediation, with the parties splitting the mediation fees equally. It is further agreed and understood that the scope of matters to be submitted to dispute mediation as referenced above is limited to disputes concerning sufficiency of performance and duty to pay or entitlement, if any, to any reduced fee or compensation. Any other disputes or conflicts involving damages or claimed remedies outside the scope of sufficiency of performance and compensation adjustment shall be referred to a court of competent jurisdiction in Denton County, Texas. 14. EXHIBITS. Attached hereto, and referred to elsewhere in this Agreement are the following Exhibits, which are hereby incorporated by reference. Exhibit A Agency Payment Worksheet Exhibit B TEXAS LAW ENFORCEMENT TELECOMMUNICATION SYSTEM (TLETS) NON - TWENTY-FOUR HOUR TERMINAL AGENCY AGREEMENT 15. MULTIPLE ORIGINALS. It is understood and agreed that this Agreement may be executed in a number of identical counterparts, each of which shall be deemed an original for all purposes. Interlocal Cooperation Agreement for 2021-22 Page Shared Governance Communications & Dispatch Services System / Trophy Club fire & Police Departments 16. NOTICES. All notices, demands or other writings may be delivered by either party by U.S. First Class Mail or by other reliable courier to the parties at the following addresses: County: 1 Denton County Judge Denton County Commissioners Court 110 West Hickory, Room #207 Denton, Texas 76201 2 Denton County Sheriff Denton County Sheriff's Office 127 N. Woodrow Lane Denton, Texas 76205 3 Assistant District Attorney Counsel to the Sheriff 127 N. Woodrow Lane Denton, Texas 76205 Name of Agency: Contact Person Address City, State, Zip Telephone Email Town of Trophy Club Fire & Police Departments Mayor Alicia Fleury 1 Trophy Wood Dr. Trophy Club, TX 76262 682-237-2900 afleqU@trophyclub.org 17. SEVERABILITY. The validity of this Agreement and/or any of its terms or provisions, as well as the rights and duties of the parties hereto, shall be governed by the laws of the State of Texas. Further, this Agreement shall be performed and all compensation payable in Denton County, Texas. In the event that any portion of this Agreement shall be found to be contrary to law, it is the intent of the parties hereto that the remaining portions shall remain valid and in full force and effect to the extent possible. 18. THIRD PARTY. This Agreement is made for the express purpose of providing communications and dispatch services, which both parties recognize to be a governmental function. Except as provided in this Agreement, neither party assumes any liability beyond that provided by law. This Agreement is not intended to create any liability for the benefit of third parties. 19. VENUE. This agreement will be governed and construed according to the laws of the State of Texas. This agreement shall be performed in Denton County, Texas. 20. WAIVER. The failure of County or Agency to insist upon the performance of any term or provision of this Agreement or to exercise or enforce any right herein conferred, or the waiver of a breach of any provision of this Agreement by either party, shall not be construed as a waiver or relinquishment to any extent of either party's right to assert or rely upon any such term or right, or future breach of such provision, on any future occasion. 21. AUTHORIZED OFFICIALS. Each party has the full power and authority to enter into and perform this Agreement. The persons executing this Agreement represent they have been properly authorized to sign on behalf of their governmental entity. Interlocal Cooperation Agreement for 2021-22 Page 5 Shared Governance Communications & Dispatch Services System / Trophy Club fire & Police Departments 22. CURRENT FUNDS. All payments made by Agency to County pursuant to this Agreement shall be from current revenues available to Agency. 23. DISPATCH & COMMUNICATION RECORDS. The parties acknowledge that the Denton County Sheriff's Office may release dispatch and communication records of Agency pursuant to the Texas Public Information Act until such a time that the parties agree to transfer such responsibility to Agency. DENTON COUNTY, TEXAS Andy Eads, County Judge Denton County Commissioners Court 110 West Hickory, Room #207 Denton, Texas 76201 (940)349-2820 EXECUTED duplicate originals on this Date: Approved as to content: Denton County Sheriff's Office Approved as to form: Assistant District Attorney Counsel to the Sheriff AGENCY Alicia Fleury, Mayor Town of Trophy Club 1 Trophy Wood Dr. Trophy Club, TX 76262 682-237-2900 EXECUTED duplicate originals on this Date: Approved as to content: Fire Chief Jack Taylor Police Chief Patrick Arata Approved as to form: Attorney for Agency Interlocal Cooperation Agreement for 2021-22 Page 6 Shared Governance Communications & Dispatch Services System / Trophy Club fire & Police Departments Exhibit A 2021-22 Budget Year Denton County Sheriffs Office Communications Agreement Agency Payment Worksheet Agency: Town of Trophy Club Fire & Police Departments Chief Arata, Chief Taylor and/or April Payment Contact Person: Duvall 682-237-2900 Phone Number: parataktrophyclub. org jta lorktrophyclub.org or Email(s): aduvall ,trophyclub.org 1 Trophy Wood Dr. Address: City, State, Zip Trophy Club, TX 76262 $ 8,041.00 Fire $ 42,439.00 Police AGENCY TOTAL AMOUNT DUE $ 50,480.00 Total Agency Should Include this Worksheet with Each Payment Sent to Denton County. Make checks payable to: Denton County Mail payments to: Communications Agreement Payments Denton County Auditor 401 W. Hickory, Suite 423 Denton, Texas 76201-9026 Payment Plan Options Agency MUST Select One Payment Option 1 One Annual Payment (100%) 2 Two Payments 50%) 3 Four Payments (25%) 4 Twelve Monthly Payments 5 Other Payment Option Exhibit B TEXAS LAW ENFORCEMENT TELECOMMUNICATION SYSTEM (TLETS) NON - TWENTY-FOUR HOUR TERMINAL AGENCY AGREEMENT 2021-2022 Twenty -Four Hour Terminal Agency DENTON COUNTY SHERIFF'S OFFICE Non Twenty -Four Hour Terminal Agency Trophy Club Police Department This document constitutes an agreement between the following parties: The Twenty -Four Hour Terminal Agency agrees to make entries into the Texas Crime Information Center (TCIC) and the National Crime Information Center (NCIC) computers for the Non Twenty -Four Hour Terminal Agency. All records must be entered with the Twenty -Four Hour Agency's ORI, and all case reports and original warrants must be held at the Twenty -Four Hour Agency for hit confirmation purposes. The Non Twenty -Four Hour Agency agrees to abide by all laws of the United States and the State of Texas and all present or hereafter approved rules, policies and procedures of TLETS, NLETS, TCIC, NCIC and any other system now or in the future associated with TLETS concerning the collection, storage, processing, retrieval, dissemination and exchange of information for criminal justice purposes. The Twenty -Four Hour Agency reserves the right to suspend service to the Non Twenty -Four Hour Agency which may include canceling of records entered for the Non Twenty -Four Hour Agency when applicable policies are violated. The Twenty -Four Hour Agency may reinstate service following such instances upon receipt of satisfactory assurances that such violations have been corrected. In order to comply with NCIC policies established by the NCIC Advisory Policy Board, the Non Twenty -Four Hour Agency agrees to maintain accurate records of all TCIC/NCIC entries made through the Twenty -Four Hour Agency and to immediately notify the Twenty -Four Hour Agency of any changes in the status of those reports to include the need for cancellation, addition, deletion or modification of information. The Twenty -Four Hour Agency agrees to enter, update and remove all records for the Non Twenty -Four Hour Agency on a timely basis, as defined by NCIC. In order to comply with NCIC Validation requirements, the Non Twenty -Four Hour Agency agrees to perform all validation procedures as required by NCIC on all records entered through the Twenty -Four Hour Agency. Either the Twenty -Four Hour Agency or the Non Twenty -Four Hour Agency may, upon thirty days written notice, discontinue this agreement. To the extent allowed by the laws of the State of Texas, the Non Twenty -Four Hour Agency agrees to indemnify and save harmless the Twenty -Four Hour Agency as well as the DPS, its Director and employees from and against all claims, demands, actions and suits, including but not limited to any liability for damages by reason of or arising out of any false arrests or imprisonment or any cause of the Non Twenty -Four Hour Agency or its employees in the exercise of the enjoyment of this Agreement. In witness whereof, the parties hereto caused this agreement to be executed by the proper officers and officials. DENTON COUNTY SHERIFF'S OFFICE AGENCY Signature: Signature: By: Tracy Murphree By: Patrick Arata Title: Denton County Sheriff Title: Police Chief Date: Date: STATE OF TEXAS § COUNTY OF DENTON § INTERLOCAL COOPERATION AGREEMENT FOR SHARED GOVERNANCE COMMUNICATIONS & DISPATCH SERVICES SYSTEM This Interlocal Cooperation Agreement for Shared Governance Communications and Dispatch Services System, hereinafter referred to as "Agreement", is made by and between Denton County, a political subdivision of the State of Texas, hereinafter referred to as the "County", and Name of Agency: Town of Trophy Club Fire & Police Departments hereinafter referred to as "Agency". WHEREAS, the County is a duly organized political subdivision of the State of Texas engaged in the administration of county government and related services for the benefit of the citizens of Denton County, Texas; and WHEREAS, the Agency is duly organized and operating under the laws of the State of Texas engaged in the provision of municipal government and/or related services for the benefit of the citizens of Agency; and WHEREAS, parties agree that the utilization of combined communications and dispatch services system will be in the best interests of both the County and the Agency, WHEREAS, the County and the Agency mutually desire to be subject to the provisions of the Interlocal Cooperation Act of the V.T.C.A. Government Code, Chapter 791; and NOW THEREFORE, the County and the Agency, for the mutual consideration hereinafter stated, agree and understand as follows: 1. PURPOSE. The Denton County Sheriff ("Sheriff") has the facilities to provide emergency telecommunications and dispatch services throughout Denton County. The Agency wishes to utilize the Sheriffs available telecommunications and dispatch services ("Services") during the term of this agreement. 2. ADVISORY BOARD. The Denton County Sheriffs Office will establish an Advisory Board for the Shared Governance Communication and Dispatch System "Advisory Board". The membership of the board shall be the Chief of each Agency, or designee. The Advisory Board may advise and make recommendations to the Sheriff and the Sheriff's Office on matters relating to the Communications Center, as well as the recommendations for the Annual Agency Workload and Cost Statistics, within the limitations set forth in paragraph 6.1, herein. 3. TERM OF AGREEMENT. The initial term of this Agreement shall be for a one-year period beginning October 1, 2021 and ending on September 30, 2022. 4. TERMINATION OF AGREEMENT. Either party may terminate this agreement, with or without cause, after providing ninety (90) days written notice to the other party. Interlocal Cooperation Agreement for 2021-22 Page 1 Shared Governance Communications & Dispatch Services System / Trophy Club fire & Police Departments 5. ANNUAL SERVICE FEE. Each Agency shall pay to the County a fee for services based on the workload generated by the Agency. 5.1. Agency shall pay to County the Total Amount on Exhibit "A ". 5.2. The Agency shall complete Exhibit "A ; Agency Payment Worksheet, to identify the payment terms preferred by Agency. Agency is responsible for sending payments to County 5.3. The fee for service will be based on the pro rata share of the workload generated by the Agency. 5.4. County agrees to provide Agency a proposed service fees for the next budget/fiscal year as agreed by the parties. 5.5 If this Agreement is terminated prior to the expiration of the term of the Agreement, payment shall be pro -rated by written agreement between the parties. 5.6 Dispatch costs for the upcoming fiscal year are calculated utilizing 50% of the approved Communications Budget for the current fiscal year and agency workload statistics from the previous fiscal year. Agency workload percentages are calculated by: 5.6.1. Determining the agency's percentage of total Calls For Service (CFS) 5.6.2 Determining the agency's percentage of total Officer Initiated Activity (OIA) 5.6.3 Averaging the values from # 5.6.1 & # 5.6.2 5.6.4 Determining the percentage of OIA that is Mobile Data Computer (MDC) activity 5.6.5 Determining agency OIA that is not MDC Activity 5.6.6 Determining adjusted percentage of OIA that is MDC activity by dividing value of # 5.6.5 by total OIA 5.6.7 Determining agency CFS that are public requests by subtracting agency assists or mutual aid calls from the agency's CFS 5.6.8 Determining adjusted percentage of total CFS that are public requests by dividing value of # 5.6.7 by total CFS 5.6.9 Determining agency workload percentage by calculating average of # 5.6.6 and # 5.6.8 5.6.10 Determining agency final cost by workload by multiplying value of # 5.6.9 against 50% of the approved Communications budget 6. COUNTY SERVICES AND RESPONSIBILITIES. The County agrees to provide the following services and responsibilities: 6.1 The Sheriff shall have the sole discretion as to the method of providing the Services including, but not limited to the order of response to calls, and shall be the sole judge as to the most expeditious and effective manner of handling and responding to calls for service or the rendering thereof. The Sheriff shall have the sole discretion as to the method and final decision regarding the annual workload and cost statistics. The Sheriff will devote sufficient time to insure the performance of all duties and obligations set forth herein. 6.2 County shall furnish full-time communications services including a twenty-four (24) hours a day, seven (7) days a week public safety answering point, radio services, dispatching services, or law enforcement transmission originating from AGENCY requesting law enforcement and fire Interlocal Cooperation Agreement for 2021-22 Page 2 Shared Governance Communications & Dispatch Services System / Trophy Club Fire & Police Departments protection services and access to local, regional, state, and national data bases and telecommunications systems. 6.3 The services provided by County include the following: 6.3.1 twenty-four (24) hours a day, seven (7) days a week public safety answering point; 6.3.2. receiving emergency and routine calls for law enforcement, fire, and medical services; 6.3.3 directing a response to said calls by dispatching the appropriate law enforcement, fire, and medical services; 6.3.4. providing on -going communication support to the emergency personnel in the field; and 6.3.5 updating, maintaining, and managing the County owned radio communications system, computer systems, support files, and resource materials necessary to accomplish the above. 6.4 County may add new Agencies not currently served by Denton County at the discretion of Denton County and the Denton County Sheriff's Office. 7. AGENCY RESPONSIBILITIES. The Agency agrees to the following responsibilities: 7.1 Providing accurate current GIS data of the corporate limits and extraterritorial jurisdiction of the Agency. 7.2 Furnish County with a current list of all Officers and Reserves authorized by Agency to use the communications system. 7.3 Agency is responsible for the costs and upgrades associated with maintaining Agency's communication equipment. 7.4 Agency agrees to abide by all laws of the United States and the State of Texas and all present or hereafter approved rules, policies and procedures of TLETS, NLETS, TCIC, NCIC and any other system now or in the future associated with TLETS concerning the collection, storage, processing, retrieval, dissemination and exchange of information for criminal justice purposes 7.5 Adherence to all Sheriff's Office communications rules and regulations. 7.6 Agency agrees to provide all necessary and required TLETS paperwork. See Exhibit «B„ 7.7 Appoint representative and agree to participate in the Advisory Board. 7.8 Agency is responsible for sending payments to County as more fully described in Exhibit "A" to this Agreement. 8. AGREEMENT. The parties acknowledge they have read and understand and intend to be bound by the terms and conditions of this Agreement. This Agreement contains the entire understanding between the parties concerning the subject matter hereof. No prior understandings, whether verbal or written, between the parties or their agents are enforceable unless included in writing in this agreement. This Agreement may be amended only by written instrument signed by both parties. 9. AGREEMENT LIASONS. Each party to this agreement shall designate a Liaison to insure the performance of all duties and obligations of the parties. The Liaison for each party shall devote sufficient time and attention to the execution of said duties on behalf of the Party to ensure full compliance with the terms and conditions of this Agreement. Interlocal Cooperation Agreement for 2021-22 Page 3 Shared Governance Communications & Dispatch Services System / Trophy Club fire & Police Departments 10. ASSIGNMENT. Neither party shall assign, transfer, or sub -contract any of its rights, burdens, duties, or obligations under this Agreement without the prior written permission of the other party to this Agreement. 11. AGENCY LIABILITY. The Agency understands and agrees that the Agency, its employees, servants, agents, and representatives shall at no time represent themselves to be employees, servants, agents, and/or representatives of the County. The Agency shall not be required to indemnify nor defend County for any liability arising out of the wrongful acts of employees or agents of County to the extent allowed by Texas law. 12. COUNTY LIABILITY. The County understands and agrees that the County, its employees, servants, agents, and representatives shall at no time represent themselves to be employees, servants, agents, and/or representatives of the Agency. The County shall not be required to indemnify nor defend Agency for any liability arising out of the wrongful acts of employees or agents of Agency to the extent allowed by Texas law. 13. DISPUTES/RECOURSE. County and Agency agree that any disputes or disagreements that may arise which are not resolved at the staff level by the parties should be referred to the Appointed Liaisons for each entity. Any further disputes arising from the failure of either Agency or County to perform and/or agree on proportionate reduction in fees shall be submitted to mediation, with the parties splitting the mediation fees equally. It is further agreed and understood that the scope of matters to be submitted to dispute mediation as referenced above is limited to disputes concerning sufficiency of performance and duty to pay or entitlement, if any, to any reduced fee or compensation. Any other disputes or conflicts involving damages or claimed remedies outside the scope of sufficiency of performance and compensation adjustment shall be referred to a court of competent jurisdiction in Denton County, Texas. 14. EXHIBITS. Attached hereto, and referred to elsewhere in this Agreement are the following Exhibits, which are hereby incorporated by reference. Exhibit A Agency Payment Worksheet Exhibit B TEXAS LAW ENFORCEMENT TELECOMMUNICATION SYSTEM (TLETS) NON - TWENTY-FOUR HOUR TERMINAL AGENCY AGREEMENT 15. MULTIPLE ORIGINALS. It is understood and agreed that this Agreement may be executed in a number of identical counterparts, each of which shall be deemed an original for all purposes. Interlocal Cooperation Agreement for 2021-22 Page Shared Governance Communications & Dispatch Services System / Trophy Club fire & Police Departments 16. NOTICES. All notices, demands or other writings may be delivered by either party by U.S. First Class Mail or by other reliable courier to the parties at the following addresses: County: 1 Denton County Judge Denton County Commissioners Court 110 West Hickory, Room #207 Denton, Texas 76201 2 Denton County Sheriff Denton County Sheriff's Office 127 N. Woodrow Lane Denton, Texas 76205 3 Assistant District Attorney Counsel to the Sheriff 127 N. Woodrow Lane Denton, Texas 76205 Name of Agency: Contact Person Address City, State, Zip Telephone Email Town of Trophy Club Fire & Police Departments Mayor Alicia Fleury 1 Trophy Wood Dr. Trophy Club, TX 76262 682-237-2900 afleqU@trophyclub.org 17. SEVERABILITY. The validity of this Agreement and/or any of its terms or provisions, as well as the rights and duties of the parties hereto, shall be governed by the laws of the State of Texas. Further, this Agreement shall be performed and all compensation payable in Denton County, Texas. In the event that any portion of this Agreement shall be found to be contrary to law, it is the intent of the parties hereto that the remaining portions shall remain valid and in full force and effect to the extent possible. 18. THIRD PARTY. This Agreement is made for the express purpose of providing communications and dispatch services, which both parties recognize to be a governmental function. Except as provided in this Agreement, neither party assumes any liability beyond that provided by law. This Agreement is not intended to create any liability for the benefit of third parties. 19. VENUE. This agreement will be governed and construed according to the laws of the State of Texas. This agreement shall be performed in Denton County, Texas. 20. WAIVER. The failure of County or Agency to insist upon the performance of any term or provision of this Agreement or to exercise or enforce any right herein conferred, or the waiver of a breach of any provision of this Agreement by either party, shall not be construed as a waiver or relinquishment to any extent of either party's right to assert or rely upon any such term or right, or future breach of such provision, on any future occasion. 21. AUTHORIZED OFFICIALS. Each party has the full power and authority to enter into and perform this Agreement. The persons executing this Agreement represent they have been properly authorized to sign on behalf of their governmental entity. Interlocal Cooperation Agreement for 2021-22 Page 5 Shared Governance Communications & Dispatch Services System / Trophy Club fire & Police Departments 22. CURRENT FUNDS. All payments made by Agency to County pursuant to this Agreement shall be from current revenues available to Agency. 23. DISPATCH & COMMUNICATION RECORDS. The parties acknowledge that the Denton County Sheriff's Office may release dispatch and communication records of Agency pursuant to the Texas Public Information Act until such a time that the parties agree to transfer such responsibility to Agency. DENTON COUNTY, TEXAS Andy Eads, County Judge Denton County Commissioners Court 110 West Hickory, Room #207 Denton, Texas 76201 (940)349-2820 EXECUTED duplicate originals on this Date: Approved as to content: Denton County Sheriff's Office Approved as to form: Assistant District Attorney Counsel to the Sheriff AGENCY Alicia Fleury, Mayor Town of Trophy Club 1 Trophy Wood Dr. Trophy Club, TX 76262 682-237-2900 EXECUTED duplicate originals on this Date: Approved as to content: Fire Chief Jack Taylor Police Chief Patrick Arata Approved as to form: Attorney for Agency Interlocal Cooperation Agreement for 2021-22 Page 6 Shared Governance Communications & Dispatch Services System / Trophy Club fire & Police Departments Exhibit A 2021-22 Budget Year Denton County Sheriffs Office Communications Agreement Agency Payment Worksheet Agency: Town of Trophy Club Fire & Police Departments Chief Arata, Chief Taylor and/or April Payment Contact Person: Duvall 682-237-2900 Phone Number: parataktrophyclub. org jta lorktrophyclub.org or Email(s): aduvall ,trophyclub.org 1 Trophy Wood Dr. Address: City, State, Zip Trophy Club, TX 76262 $ 8,041.00 Fire $ 42,439.00 Police AGENCY TOTAL AMOUNT DUE $ 50,480.00 Total Agency Should Include this Worksheet with Each Payment Sent to Denton County. Make checks payable to: Denton County Mail payments to: Communications Agreement Payments Denton County Auditor 401 W. Hickory, Suite 423 Denton, Texas 76201-9026 Payment Plan Options Agency MUST Select One Payment Option 1 One Annual Payment (100%) 2 Two Payments 50%) 3 Four Payments (25%) 4 Twelve Monthly Payments 5 Other Payment Option Exhibit B TEXAS LAW ENFORCEMENT TELECOMMUNICATION SYSTEM (TLETS) NON - TWENTY-FOUR HOUR TERMINAL AGENCY AGREEMENT 2021-2022 Twenty -Four Hour Terminal Agency DENTON COUNTY SHERIFF'S OFFICE Non Twenty -Four Hour Terminal Agency Trophy Club Police Department This document constitutes an agreement between the following parties: The Twenty -Four Hour Terminal Agency agrees to make entries into the Texas Crime Information Center (TCIC) and the National Crime Information Center (NCIC) computers for the Non Twenty -Four Hour Terminal Agency. All records must be entered with the Twenty -Four Hour Agency's ORI, and all case reports and original warrants must be held at the Twenty -Four Hour Agency for hit confirmation purposes. The Non Twenty -Four Hour Agency agrees to abide by all laws of the United States and the State of Texas and all present or hereafter approved rules, policies and procedures of TLETS, NLETS, TCIC, NCIC and any other system now or in the future associated with TLETS concerning the collection, storage, processing, retrieval, dissemination and exchange of information for criminal justice purposes. The Twenty -Four Hour Agency reserves the right to suspend service to the Non Twenty -Four Hour Agency which may include canceling of records entered for the Non Twenty -Four Hour Agency when applicable policies are violated. The Twenty -Four Hour Agency may reinstate service following such instances upon receipt of satisfactory assurances that such violations have been corrected. In order to comply with NCIC policies established by the NCIC Advisory Policy Board, the Non Twenty -Four Hour Agency agrees to maintain accurate records of all TCIC/NCIC entries made through the Twenty -Four Hour Agency and to immediately notify the Twenty -Four Hour Agency of any changes in the status of those reports to include the need for cancellation, addition, deletion or modification of information. The Twenty -Four Hour Agency agrees to enter, update and remove all records for the Non Twenty -Four Hour Agency on a timely basis, as defined by NCIC. In order to comply with NCIC Validation requirements, the Non Twenty -Four Hour Agency agrees to perform all validation procedures as required by NCIC on all records entered through the Twenty -Four Hour Agency. Either the Twenty -Four Hour Agency or the Non Twenty -Four Hour Agency may, upon thirty days written notice, discontinue this agreement. To the extent allowed by the laws of the State of Texas, the Non Twenty -Four Hour Agency agrees to indemnify and save harmless the Twenty -Four Hour Agency as well as the DPS, its Director and employees from and against all claims, demands, actions and suits, including but not limited to any liability for damages by reason of or arising out of any false arrests or imprisonment or any cause of the Non Twenty -Four Hour Agency or its employees in the exercise of the enjoyment of this Agreement. In witness whereof, the parties hereto caused this agreement to be executed by the proper officers and officials. DENTON COUNTY SHERIFF'S OFFICE AGENCY Signature: Signature: By: Tracy Murphree By: Patrick Arata Title: Denton County Sheriff Title: Police Chief Date: Date: 115NIIIIIIIS I r Trophy Club Town Council March 23, 2021 • Encompasses 234 square miles • 8th fastest growing district in Texas • 30 campuses (19 elementary schools, 6 middle schools, 3 comprehensive high schools,1 accelerated high school, and special programs center) • 14+ towns and cities • 3 counties (Denton, Tarrant, and Wise) • ADDroximatelv 27% built out, with 92 active developments On February 8, the NISD Board of Trustees voted to calla $745.7 million bond election for Saturday, May 1, 20211 Preparing for Growth This bond will accommodate nearly 5,000 new students to help NISD keep pace with a projected 4,000-5,400 new students by the 2024-25 school year. 40,000 35,000 30,000 25,000 20,976 20,000 18,950 16,626 15,370 15,000 10,000 5,000 32,088 30,840 29,518 28,272 27,049 25,191 25,399 23,927 0 ' 33,470 37,927 39,377 36,415 34,964 2010-11 2011-12 2013-14 2015-16 2017-18 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2020 Q3 Demographic Report The May 1, 2021 Bond Election will be presented to voters in four separate propositions. SCHOOL FACILITIES & CAPITAL IMPROVEMENTS $7121400,000 STADIUM RENOVATIONS $8,200,000 MIDDLE SCHOOL RECREATIONAL FACILITIES $5,700,000 TOTAL BOND PROPOSAL: $745,700,000 TECHNOLOGY DEVICES $19,4007000 NISD is complying with a new state law that requires certain project types to be separated out on different propositions. SCHOOL FACILITIES & CAPITAL IMPROVEMENTS: $7121400,000 GROWTH • New Elementary School #22 • New Elementary School #23 • Middle School #7 • Replacement School for Hatfield Elementary School • Replacement School for Seven Hills Elementary School • Replacement School for Pike Middle School • Northwest High School Additions and Renovations • Land Acquisition for New Schools CAPITAL IMPROVEMENTS & RENOVATIONS • Infrastructure Lifecycle Replacements (roofs, flooring, HVAC, fire alarms) • Repurpose Hatfield Elementary School for Centralized Administrative Use • Administration Building End -of -Life Renovations • West Operations Facility Additions and Renovations EQUITY & EVOLVING NEEDS • Middle School Program Standardization • Elementary Playground Equity and Safety SAFETY & SECURITY T F • New Buses • Fiber and Equipment Pre-K Classrooms • State Mandated Full -Day Program (House Bill 3) • Additions to Allow for Pre-K Classrooms at 11 Elementary Schools Cox Prairie View Granger Roanoke Hughes Schluter Lakeview Sendera Ranch Clara Love J.C. Thompson Peterson • Additions to Include Age - Appropriate Restrooms irnnnsitic • Track and Field Complex (Texan Stadium, constructed in 1950) - Renovate End -of -Life Materials (bleachers, press box, restrooms, turf, track, lights) • NISD Stadium (constructed in 2005) - Replace Lighting at End of Lifecycle 3.G.and L • Tennis Courts, Athletic Field and Track at Middle School #7 (school building in Prop. A) • Tennis Court Resurfacing at 4 Middle School campuses • Add Tennis Courts at Medlin Middle School (currently do not have) • New Devices for Students and Teachers (Lifecycle Replacements and Enrollment Growth) Any bonds issued for technology devices will not exceed three years. NISD will be able to issue the May 2021 bonds without an increase to the tax rate because: • Strong growth in new construction (both residential and commercial) • Rising Taxable Assessed Values (set by County Appraisal Districts) • Board of Trustees has refinanced existing debt phis portion of the total tax rate is recapture (Robin Hood) bject to NISD Debt Service Rate 2020-2021 2021-2022 i&S $1.60 $1.40 $1. $1.20 $1.10 51.00 $0.80 $0.60 $0.40 0.20 91_45 $1_d5 91.45 91_45 $1.49 M&0 I&S TOTAL TAX RATE 363 The current total tax rate in NISD is the lowest it has been in over 10 years and will not increase as a result of the 2021 bond election. In fact, the NISD Board of Trustees voted on August 10, 2020 to lower the I&S rate by $0.03. NORTHWEST INDEPENDENT SCHOOL DISTRICT SPECIAL ELECTION NORTHWEST INDEPENDENT SCHOOL DISTRICT PROPOSITION A FOR AGAINST THE ISSUANCE OF $712,400,000 OF BONDS BY THE NORTHWEST INDEPENDENT SCHOOL DISTRICT FOR SCHOOL FACILITIES AND THE PURCHASE OF LAND, BUSES AND VEHICLES AND LEVYING THE TAX IN PAYMENT THEREOF. THIS IS A PROPERTY TAX INCREASE. NORTHWEST INDEPENDENT SCHOOL DISTRICT SPECIAL ELECTION NORTHWEST INDEPENDENT SCHOOL DISTRICT PROPOSITION C FOR AGAINST ) THE ISSUANCE OF $5,700,000 OF BONDS BY THE NORTHWEST INDEPENDENT SCHOOL DISTRICT FOR MIDDLE SCHOOL RECREATIONAL FACILITIES AND LEVYING THE TAX IN PAYMENT THEREOF. THIS IS A PROPERTY TAX INCREASE. NORTHWEST INDEPENDENT SCHOOL DISTRICT SPECIAL ELECTION NORTHWEST INDEPENDENT SCHOOL DISTRICT PROPOSITION B =1 AGAINST ) THE ISSUANCE OF $8,200,000 OF BONDS BY THE NORTHWEST INDEPENDENT SCHOOL DISTRICT FOR RENOVATIONS TO THE TRACK AND FIELD COMPLEX (TEXAN STADIUM) AND NORTHWEST ISD STADIUM AND LEVYING THE TAX IN PAYMENT THEREOF. THIS IS A PROPERTY TAX INCREASE. NORTHWEST INDEPENDENT SCHOOL DISTRICT SPECIAL ELECTION NORTHWEST INDEPENDENT SCHOOL DISTRICT PROPOSITION D AGAINST ) THE ISSUANCE OF $19,400,000 OF BONDS (WITH A ) MAXIMUM MATURITY OF THREE YEARS) BY THE NORTHWEST INDEPENDENT SCHOOL DISTRICT FOR INSTRUCTIONAL TECHNOLOGY AND LEVYING THE ) TAX IN PAYMENT THEREOF. THIS IS A PROPERTY ) TAX INCREASE. No tax rate increase is required as a result of Props A,D. Due to a new state law, you will see "THIS IS A PROPERTY TAX INCREASE " on your ballot for each Proposition. However, Propositions AmD will not change your tax rate. This is standard language required on all school bonds. NISD can make all existing and new bond payments with the current AS tax rate. 2020.2021 2021-2022 Register to Vote by April 1. EARLY VOTING April 19m27 2021 ELECTION DAY Saturday, May 1, 2021 www.nisdtxbond-org Four Bond No Change to Propositions: A - D the Tax Rate 14X41ViX�-.Fr•wf111F[MWayy 4FyM hXYV+YTr+ wm,r...�e.a..xa.�rw�r�.•rwwtr+.-<..r rv.. Isn f�rswu.f5IdE4Mwurrm•rr xu xnoufw Ikww•1�wI-0.VI�cIdWrWvlw d.[M�rhAIYNp ywwri blMlr.YNYllirf 7A4[4n xhrl'wMIN hMM MYIMWM41 x701MYFlt4MM1 MII411rN1 MMIMNM MWITIMWr a.hdl/F�]LLjw wr+.�oFA�MhM1 JAMYGMAktrtMMrfF Y[o- M]4ddtrp, Ww.W\+NV"4x�G rxsga[41nGlr��rur�q �...rw...�.�x.�r.w w[..._..wxw..rx..vr_.�...: rwxrr.r1wwNr�rnn. rxxrn.r. rxxrrrti�x.r err No Change to the Tax Rate Have a question? Submit it here. Frequently Asked bP ti+1e.4� _nY �.r _.MFw rh_.x_n.a[f lM.w_µ.,x F•I � _~ Cuestions ... ._m ....._— r.....w.a'-�J.r[.mw.a.M......a,.wr.ir.....«�a,i.r��.. $745,700.000 Understanding the Tax Rate �— nryrwri rwr.oxarx nw �w�.. w •.. �.. r. rN ..,-rnrti .e Informational Presentations WHAT'S PROPOSED FOR OUR SCHOOL: PROPOSITION A SAFETY & SECURITY • New Access Contro • New Security Cameras • Convert Analog Radios to Digital and Add Repeaters LIFECYCLE REPLACEMENTS • Replace Gym Floor TECHNOLOGY INFRASTRUCTURE • Fiber Upgrades • Cell Phone Boosters PLAYGROUND EQUITY & SAFETY • Replace Surface • Expand Play Space for PreK-1 st Grades • Add Additional Accessible Play Elements PROPOSITION D DEVICE REFRESH FOR TEACHERS AND STUDENTS WHAT'S PROPOSED FOR OUR SCHOOL: PROPOSITION A GROWTH • Add Pre-K Classrooms with Restrooms to Meet State Mandated Full Day Pre-K SAFETY & SECURITY • New Access Contro • New Security Cameras • Convert Analog Radios to Digital and Add Repeaters LIFECYCLE REPLACEMENTS • Re lace Car et • Partial Roof Replacement 0 Partial HVAC Replacement TECHNOLOGY • Fiber Upgrades Win- II01ml - : 0 = - PLAYGROUND EQUITY & SAFETY • Replace Surface • Expand Play Space for PreK-1 st Grades • Add Additional Accessible Play Elements PROPOSITION D DEVICE REFRESH FOR TEACHERS AND STUDENTS WHAT'S PROPOSED FOR OUR SCHOOL: PROPOSITION A SAFETY & SECURITY • New Access Contro • New Security Cameras • Convert Analog Radios to Digital and Add Repeaters LIFECYCLE REPLACEMENTS • Replace Flooring • P.E. Gym: Replace Gym Floor, Bleachers, Wall Pads & Sound System MIDDLE SCHOOL PROGRAM STANDARDIZATION Pr Renovate Life Skills Room 0 Renovate Skills for Living Classroom TECHNOLOGY INFRASTRUCTURE • Cell Phone Boosters PROPOSITION C ADD TENNIS COURTS Currently do not have any and use city -owned courts PROPOSITION D DEVICE REFRESH FOR TEACHERS AND STUDENTS WHAT'S PROPOSED FOR OUR SCHOOL: PROPOSITION A SAFETY & SECURITY • New Access Contro • New Security Cameras • Convert Analog Radios to Digital and Add Repeaters TECHNOLOGY INFRASTRUCTURE • Fiber Upgrades • Cell Phone Boosters PROPOSITION D DEVICE REFRESH FOR TEACHERS AND STUDENTS TTOWN OF c::*:!-, TROPHY CLUB 1 Trophy Wood Drive, Trophy Club, TX 76262 1 682.237.2900 I info@trophyclub.org I trophyclub.org To: Mayor Fleury and Town Council From: Lisa Payne, Town Planner CC: Steve Norwood, Town Manager Leticia Vacek, Town Secretary/RMO Re: Case SUP-21-001 Date: March 23, 2021 Agenda Item: Case SUP-21-001 (Wingstop Alcohol Permit) a. Conduct a Public Hearing regarding a request made by Wingstop for a Specific Use Permit for alcoholic beverage sales for on -premises consumption in conjunction with a restaurant use, generally located approximately 150 feet east of Trophy Club Drive and approximately 275 feet north of SH 114. b. Discussion and take appropriate action on a request made by Wingstop for a Specific Use Permit for alcoholic beverage sales for on -premises consumption in conjunction with a restaurant use, generally located approximately 150 feet east of Trophy Club Drive and approximately 275 feet north of SH 114. Strategic Link: Infrastructure & Development: Foster a business -friendly environment. Background and Explanation: Wingstop is requesting approval of a Specific Use Permit (SUP) for alcoholic beverage sales for on -premises consumption in conjunction with a restaurant use according to Section 14.02.252 of the Town's Code of Ordinances. The property's zoning of Planned Development No. 30 (PD-30) does not restrict the sales of alcoholic beverages beyond the regulations of Town Code and State Law. As shown in Exhibit B, Wingstop is applying to the Texas Alcoholic Beverage Commission (TABC) to obtain a Wine and Beer Retailer's Permit (BG), which will allow for the sale and consumption of wine and beer on the premises. Section 14.02.252(b) of the Code of Ordinances states that no alcoholic beverages may be sold within 300 feet of a church, public school or private school, or public hospital. Subsection (g) describes the methods of measurement as front door to front door and along street front property lines when measuring to churches and public hospitals, and in a direct line from nearest property line to property line when measuring to public schools and private schools. Wingstop complies with Town and State requirements, as the closest church (Fellowship United Methodist Church) is approximately 825 feet away, the closest public school (Lakeview Elementary School) is approximately 1.25 miles away, the closest private school (Primrose School of Westlake at Entrada) is approximately 3,400 feet away, and the closest public hospital (Methodist Southlake Hospital) is approximately 4.25 miles away. The nearby Baylor Scott & White Medical Center — Trophy Club is a private hospital so there are no separation requirements. Parking needs have been addressed by the required on -site parking spaces. The Chief of Police has reviewed this application, as required by Code, Page 1 of 2 and does not have any objections. Notice of a public hearing was distributed as required by State law. To date staff has received no inquiries. Financial Considerations: Not applicable. Legal Review: The Town Attorney has reviewed said item and concurs with staff recommendation. Boar/Committee Recommendation: The P&Z Board has heard the proposal and approved the Specific Use Permit unanimously. Staff Recommendation: Staff recommends approval of the Specific Use Permit. Attachments: • Exhibit A —Location Map • Exhibit B —TABC Application (Pages 1 & 2 Only) Page 2of2 q - - � � Or '¥\ , - low, . � Q \ _ I 1 ' $ > # � a - - : ` ? � , ■ .\ . « ' ,�% z - do ^ ± . � . � y � \ f` • . _ . � . ! k � � Exhibit B yE� aLCUrk�� TEXAS ALCOHOLIC ON -PREMISE i` BEVERAGE CO.MMISSIGN PREQUALIFICATION PACKET Ff� �ti Zicrnux!!a'lriing Hi�riia.rrrs cF Prtrrrr ring ('raiw�xriiiir� e�ci)u►` L-ON (10/2020) Submit this pocket to the proper governmental entities to obtain certification for the type of licenselpermlit for which you are applying as required by Sections 11.37, 11.39, 11.46(b), 61,37, 61.38, 61.42 and Rule §33.13 Contact your local TABC office to verify requirements of Sections 11.391 and 61.381 as you may he required to post a sign at your proposed location 60-days prior to the issuance of your licenselpermit. All statutory and rule references mentioned in this application refer to and can be found in the Texas Alcoholic Beverage Code or Rules forated or) our website: www.rabc.texas.govlfaws/code_and rufes.asp LOCATION INFORMATION 9. Application for: On nal ❑ Add Late Hours Only _ LicenselPermit Number ❑ Reinstatement ❑ Reinstatement and Change of Trade Name LicenselPermit Number ❑ Change of Location ❑ Change of Location and Trade Name LicenselPermit Number 2. Type of On -Premise LicenselPermit 0 BG Wine and Beer Retailer's Permit [3 L8 Mixed Beverage Late Hours Permit ❑ BE Beer Retail Dealer's Or -Premise License ❑ MI Mhibar Permit ❑ SL Retail Dealer's On -Premise Late Hours License ❑ CB Caterer's Permit ❑ BP Brewputr License M FS Food and Beverage Certificate ❑ V Wine & Beer Retailers Permit for Excursion Boats ❑ PE Beverage Cartage Permit © MB Mixed Beverage Permit ❑ RM Mixed Beverage Restaurant Permit with FB © G Private Carrier's Permit -8"pubs (BJ_with a eG only ❑_ E Local Cartage Permit - Wlne/Beer retailers (BG) Onty 3. Indicate Primary Business at this Location ® Restaurant 0 Sporting Arena, Civic Center. Hotel ❑ Bar _--- [] Grocerl_fl_Market -- Sexually t7riented _�_ ��. _©-M'acellaneaus 4. Trade Name of Location (Name of restaurant, bar, store, etc.) Wingstop V- I$6 e) _ 5. Location Address 2230 TX-114, Suite 210 City County State Zip Gode Trophy Club Denton TX 46262 -- --- - . _ . - ........ ..-- _ - -. 6. Mailing Address Ciiy State i Zip Code 1207 Hall Johnson Dr. Colleyville TX 176034 7. Business Phone No. Alternate Phone No, E-mail Address pending 817-328-1978 .ear►�l,l �:��.��•7:z � rti�+�► 6. Type of Owner ❑ Individual ❑ Corporation ❑ City/County/University ❑ Partnership Limited Liability Company❑ Other ❑ Limited Partnership ❑ Joint Venture ❑ Limited Liability Partnership ❑ Trust 9. Owner of Business/Applicant (Name of Corporation, LLC, etc.) North Texas Wings, LLC PRIMARY CONTACT PERSON rho primary contact person should be a person who can answer questions TABC may have about the application. The contact phone wnd email are mandatory and must be active and updated regularly. If additional information is needed, It will be requested from this mritact pqrson. Delays in responding torequests may delay the processing and approval of your permill1license. 10. Contact Person; Relation to Business; Sam Allen Operations Services Phone (mandator 817-382-2560 U j.tu P z4c Ana &,x.w nuffim W2.320,8935 Page 1 of 5 Form L-0N i1012020) 11. Are you, the applicant, a veteran -owned business? ❑ Yes X No 12. Are you, the applicant, a Historically Underutilized Business (HUB)? ❑ Yes X No i 13, As indicated on the chart, enter the individuals that pertain to your business type: (For additional space use Form L-OIC) _ _ __--_-- Individual/Individual Owner Limited Liability Company/All Officers or Managers ........ __.._. .. __._........ ._ Partnership/All Partners . Joint VentureNenturers ------------ Limited Partnership/All General Partners Trust/Trustee(s) Corporation/All Officers City, County, University/Official Last Name First Name i MI !Title Morrison Troy I L Manager Last Name First Name MI Title i i Last Name First Name MI Title 1 MEASUREMENT INFORMATION Section 109.31 et seq. 14 Will your business be located within 300 feet of a church or public hospital? ❑ Yes 0 No NOTE: For churches or public hospitals measure from front door to front door, along the property lines of the street fronts and in a direct line across intersections. 15. Will your business be located within 300 feet of any private/public school, day care or child care facility? ❑ Yes ® No If "YES," are the facilities located on different floors or stories of the building? ❑ Yes ❑ No NOTE: For private/public schools, day care centers and child care facilities, measure in a direct line from the nearest property line of� the school, day care center or child care facility to the nearest property line of the place of business, and in a direct line , l across intersections. i NOTE: For multistory building: businesses may be within 300 feet of a day care center or child care facility as long as the facilities are located on different floors of the building. NOTE: if located on or above the fifth story of a multistory building: measure in a direct line from the property line of the private/public school to property line of your place of business in a direct line across intersections vertically up the building at the property line to the base of the floor on which your business is located. 16. Will your business be located within 1,000 feet of a private school? ❑Yes ® No 17 Will your business be located within 1,000 feet of a public school? []Yes ®No _ 60-DAY SIGN [18. If required under Section 11.391 and 61.381, provide exact date the required sign was posted Exact Date (MWDDIYYYY) at the location. i ALL APPLICANTS 19. IF YOUR LOCATION IS NOT WITHIN THE CITY LIMITS, CHECK HERE ❑ I, the applicant, have confirmed I am not located in the city limits of any city, therefore, city certifications are not required. I COMPLETE THE FOLLOWING CHECKLIST BEFORE SUBMITTING YOUR APPLICATION !Per Sec.102.01, a tied house is defined as any overlapping ownership between those engaged in the alcoholic beverage industry at different levels of the three-tier system. No person having an interest in a permit issued by TABC may secure or hold, directly or indirectly, an ownership interest in a (business on a different level. All required forms have been completed.lryes ❑ No I have reviewed all forms to ensure they are complete. 'Yes ❑ No I have obtained all required local and state certifications (pages 3-5). ['Yes ❑ No All application packets have been notarized. des ❑ No Phone numbers and email address for contact person are up to date. ❑^(es ❑ No f All additional documentation as required by the application packets is attached. [p]'S'es ❑ No If required, out of state criminal history checks are attached (PHS #7). El Yes ❑ No I/A Certification of publication in local newspaper has been completed (page 5). F^s ❑ No ❑ N/A A copy of the newspaper publication is attached (page 5). Yes ❑ No ❑ N/A Page 2 of 5 Form L-ON (10/2020) TTOWN OF c::*:!-, TROPHY CLUB 1 Trophy Wood Drive, Trophy Club, TX 76262 1 682.237.2900 I info@trophyclub.org I trophyclub.org To: Mayor Fleury and Town Council From: Lisa Payne, Town Planner CC: Steve Norwood, Town Manager Leticia Vacek, Town Secretary/RMO Re: Case SUP-21-002 Date: March 23, 2021 Agenda Item: Case SUP-21-002 (Blue 22 Alcohol Permit) a. Conduct a Public Hearing regarding a request made by Blue 22 Sports Grill for a Specific Use Permit for alcoholic beverage sales for on -premises consumption in conjunction with a restaurant use, generally located approximately 410 feet east of Trophy Club Drive and approximately 215 feet north of SH 114. b. Discussion and take appropriate action on a request made by Blue 22 Sports Grill for a Specific Use Permit for alcoholic beverage sales for on -premises consumption in conjunction with a restaurant use, generally located approximately 410 feet east of Trophy Club Drive and approximately 215 feet north of SH 114. Strategic Link: Infrastructure & Development: Foster a business -friendly environment. Background and Explanation: Blue 22 Sports Grill is requesting approval of a Specific Use Permit (SUP) for alcoholic beverage sales for on -premises consumption in conjunction with a restaurant use according to Section 14.02.252 of the Town's Code of Ordinances. The property's zoning of Planned Development No. 30 (PD-30) does not restrict the sale of alcoholic beverages beyond the regulations of Town Code and State Law. As shown in Exhibit B, Blue 22 is applying to the Texas Alcoholic Beverage Commission (TABC) to obtain a Mixed Beverage Permit (MB), which will allow for the sale and consumption of wine, beer, and liquor on the premises. Section 14.02.252(b) of the Code of Ordinances states that no alcoholic beverages may be sold within 300 feet of a church, public school or private school, or public hospital. Subsection (g) describes the methods of measurement as front door to front door and along street front property lines when measuring to churches and public hospitals, and in a direct line from nearest property line to property line when measuring to public schools and private schools. Blue 22 complies with Town and State requirements, as the closest church (Fellowship United Methodist Church) is approximately 1,205 feet away, the closest public school (Lakeview Elementary School) is approximately 1.25 miles away, the closest private school (Primrose School of Westlake at Entrada) is approximately 3,400 feet away, and the closest public hospital (Methodist Southlake Hospital) is approximately 4.25 miles away. The nearby Baylor Scott & White Medical Center - Trophy Club is a private hospital so there are no separation requirements. Parking needs have been addressed by the required on -site parking spaces. The Chief of Police has reviewed this application, as required by Code, and does Page 1 of 2 not have any objections. Notice of a public hearing was distributed as required by State Law. To date, staff has received two inquiries, but neither party had any concerns. Financial Considerations: Not applicable. Legal Review: The Town Attorney has reviewed said item and concurs with staff recommendation. Committee Recommendation: The P&Z Board heard the proposal and approved the Specific Use Permit unanimously with no questions or comments. Staff Recommendation: Staff recommends approval of the Specific Use Permit. Attachments: Exhibit A - Location Map Exhibit B - TABC Application (Pages 1 & 2 Only) Page 2of2 � ■ � � ¥\ - , �- � . � Q \ _ -%N � a - - : ` ? � , � ■ .\ . « ' dodoAO% z - � . � y � \ f` • . _ . � . ! k — _ a ' .J � � Exhibit B r' TEXAS ALCOHOLIC ON -PREMISE BEVERAGE COMMISSION PREQUALIFICATION PACKET 't�R' •'r 1rru;nlfr{,ir.;tlt:rvro ... +ti f9-urr rt6C; {'rrurwrorrilr• `' :'t•%r n+�"' f L ON (12/2020) Submit this packet to the proper governmental entities to obtain certification for the type of license/permit for which you are applying as required by Sections 11.37, 11.39, 11.46(b), 61.37, 61.38, 61.42 and Rule §33.13 Contact your local TABC office to verify requirements of Sections 11.391 and 61.381 as you may be required to post a sign at your proposed location 60-days prior to the issuance of your licence/permit. All statutory and rule references mentioned in this application refer to and can be found in the Texas Alcoholic Beverage Code or Rules located on our website. www.fabc.&ws.9ov11aws/code and ru/es.asp LOCATION INFORMATION 1. Application for: Z Original ❑ Add Late Hours Only License/Permit Number ❑ Reinstatement ❑ Reinstatement and Change of Trade Name License/Permit Number ❑ Change of Location ❑ Change of Location and Trade Name License/Permit Number 2. Type of On -Premise License/Permit ❑ BG Wine and Beer Retailer's Permit ❑ BE Beer Retail Dealers On -Premise License ❑ EL Retail Dealer's On -Premise Late Hours License ❑ SP Biewpub License ❑ V Wine & Beer Retailer's Permit for Excursion Boats ® MB Mixed Beverage Permit ❑ O Private Carrier's Permit-8rewpubs (BP) with a SO only 3. Indicate Primary Business at this Location Restaurant ❑ Sporting Arena, Civic Center, Hotel ❑ Grocery/Market ❑ Sexually Oriented 4. Trade Name of Location (Name of restaurant, bar, store, etc.) Blue 22 Spats Grill 5. Location Address 2230 E Highway 114 ❑ LB Mixed Beverage Late Hours Permit ❑ MI Minibar Permit [] CB Caterer's Permit FB Food and Beverage Certificate ❑ PE Beverage Cartage Permit ❑ RM Mixed Beverage Restaurant Permit with FB ❑ E Local Cartage Permit - WinerBeer rei allers (SO) Only ❑ Bar ❑ Miscellaneous City County Trophy Club Denton B_ Mailing Address City 109 Carnoustie Dr Trophy Club 7. Business Phone No. Alternate Phone No. E-mail Address 4803302395 450 - cibx-400+ OWNER INFORMATION State Zip Code TX 76262 State Zip Code TX 76262 8. Type of Owner ❑ Individual ❑ Corporation ❑ City/County/University ❑ Partnership Limited Liability Company ❑ Other ❑ Limited Partnership ❑ Joint Venture ❑ Limited Liability Partnership ❑ Trust 9. Owner of Business/Applicant (Name of Corporation, LLC, etc.) Blue 22 Sports Grill LLC/ McKenzie Graham PRIMARY CONTACT PERSON The primary contact person should be a person who can ansvuer questions TABC may have about the application. The contact phone and email are mandatory and must be active and updated regularly. If additional information is needed, it will be requested from this 10. Contact Person: Relation to Business: McKenzie J Graham Managing Partner Phone (mandatory): Email (mandatory): 480-330-2395 Iri141111167-11111143I/41 ill Page 1 of 5 Form L-ON (1212020) 11. Are you, the applicant, a veteran -owned business? 12. Are you, the applicant, a Historically Underutilized Business (HUB)? Ll Yes X No ❑ Yes N No 13. As indicated on the chart, enter the individuals that pertain to your business type: (For additional space, use Form L-01Q Individual/Individual Owner Limited Liability Company/All Officers or Managers Partnership/All Partners Joint Venture/Venturers Limited Partnership/All General Partners Trust/Trustee(s) Corporation/Ail Officers City, County, UniversitylOfficial Last Name _ First Name MI Title Lindsey Samantha G Managing Partner Last Name First Name MI Title Last Name First Name MI Title MEASUREMENT INFORMATiON Section 109.31 et seq. 14, Will your business be located within 300 feet of a church or public hospital? ❑ Yes IN No NOTE. For churches or public hospitals measure from front door to front door, along the property lines of the street fronts and in a direct line across intersections 15, Will your business be located within 300 feet of any private/public school, day care or child care facility? ❑ Yes ® No If 'YES," are the facilities located on different floors or stories of the building? ❑ Yes ❑No NOTE; For private/public schools, day care centers and child care facilities, measure in a direct line from the nearest property tine of the school, day care center or child care facility to the nearest property line of the place of business, and in a direct line across intersections. NOTE: For multistory building: businesses may be within 300 feet of a day care center or child care facility as long as the facilities are located on different floors of the building. (VOTE: If located on or above the fifth story of a multistory building: measure in a direct line from the property line of the private/public school to property line of your place of business in a direct line across intersections vertically up the building at the property line to the base of the Boor on which your business is located, 16. Will your business be located within 1,000 feet of a private school? []Yes 9 No 17. Will your business be located within 1,000 feet of a public school? ❑Yes M No 60-DAY SIGN 18If required under Section 11.391 and 61.381, provide exact date the required sign was posted Exact ate (MWDD/YYYY) at the location. 3 IW i 20 7_1' ALL APPLICANTS 19. IF YOUR LOCATION IS NOT WITHIN THE CITY LIMITS, CHECK HERE 0 I, the applicant, have confirmed i am not located in the city limits of any city, therefore, city certifications are not required COMPLETE THE FOLLOWING CHECKLIST BEFORE SUBMITTING YOUR APPLICATION Per Sec. 102.01, a bed house is defined as arty overlapping ownership between those engaged in the alcoholic beverage industry at different levels of the three-tier system. No person having an interest in a permit issued by TABC may secure or hold, directly business on a different level. or indirectly, an ownership interest in a All required forms have been completed. Yes No I have reviewed all forms to ensure they are complete. Yes No I have obtained all required local and state certifications (pages 3-5). ❑ Yes No All application packets have been notarized. f1Q Yes ❑ No Phone numbers and email address for contact person are up to date. ® Yes ❑ No All additional documentation as required by the application packets is attached. 0 Yes[] No If required, out of state criminal history checks are attached (PHS #7). ❑ Yes ❑ No X NIA Certification of publication in local newspaper has been completed (page 5), 10 Yes ❑ No ❑ NIA A copy of the newspaper publication is attached (page 5). ® Yes ❑ No ❑ N/A Page 2 of 5 Form L-ON (12/2020) ITOWN OF C* TROPHY CLUB 1 Trophy Wood Drive, Trophy Club, TX 76262 1 682.237.2900 1 info@trophyclub.org I trophyclub.org To: Mayor and Town Council From: Mike Erwin, Finance Manager CC: Steve Norwood, Town Manager Leticia Vacek, Town Secretary Re: Fiscal Year 2020 Audit Date: March 23, 2021 Agenda Item: Consider and take appropriate action regarding the acceptance of the audit for the Town of Trophy Club, Fiscal Year 2020 (M. Erwin). Strategic Link: Administrative & Financial Services: Exercise fiscal discipline in all Town operations. Background and Explanation: The Town's financial records have been prepared and audited by BrooksWatson & Co., PLLC, Certified Public Accountants, as required by the Town Charter. This Certified Annual Financial Report (Annual Report) 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, 2020. 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. Financial Considerations: The independent auditor opinion states, "the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activates, the discretely presented component units, each major fund, and the aggregate remaining fund information of the Town as of September 30, 2020 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." Legal Review• Not applicable Board/Commission/ or Committee Recommendation: Not Applicable Page 1 of 2 Staff Recommendation: Staff recommends acceptance of the audit for the Town of Trophy Club, Fiscal Year 2020. Attachments: • Letter to Mayor & Council • Town of Trophy Club 2020 Annual Report Page 2 of 2 TOWN OF * TROPHY CLUB 1 Rophv Wood Dive 17Yophy Club, TX 76762 1 682.237,2900 March 23, 2021 Mayor and Council Members RE: 2020 ANNUAL REPORT Mayor and Members of Council, The audit firm of BrooksWatson & Co., PLLC has completed the audit and ANNUAL REPORT for the fiscal year of 2020. The Town received an unmodified opinion on its financials for the year, which means the financial statements 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, 2020. (See page 2 of the ANNUAL REPORT). Highlights of the audit include: 1. The net position of the Town increased $369,000. 2. The unassigned General Fund fund balance of the Town increased $1,724,000 to $6,989,000 or 66% of general fund expenditures, policy calls for 30%. 3. Town -wide outstanding debt decreased $1,648,000. The attached SAS 114 & 115 communications are the auditors' communication with governance and is intended solely for the information and use of the Town Council and management, and others within the Town, and is not intended to be and should not be used by anyone other than these specified parties. The Mayor, Mayor Pro-Tem, Manager, Assistant Manager, Finance Manager and the Audit Partner met on Tuesday, March 91h to review, discuss and answer any questions at that time. The ANNUAL REPORT and audit will be presented at the Tuesday, March 23rd Council meeting for approval. If you have any questions, please feel free to email me. Mike Erwin merwin@trophyclub.org COMPREHENSIVE ANNUAL FINANCIAL REPORT TOWN OF TROPHY CLUB PREPARED BY DEPARTMENT OF FINANCE Tc* TOWN OF TROPHY CLUB COMPREHENSIVE ANNUAL FINANCIAL REPORT of the Town of Trophy Club, Texas For the Year Ended September 30, 2020 Prepared by Steve Norwood Town Manager Mike Erwin Finance Manager C TOWN OF TROPHY CLUB Town of Trophy Club, Texas TABLE OF CONTENTS September 30, 2020 INTRODUCTORY SECTION Pa&e Letter of Transmittal i GFOA Certificate of Achievement for Excellence in Financial Reporting vii Organizational Chart viii List of Principal Officials ix FINANCIAL SECTION Independent Auditor's Report 1 Management's Discussion and Analysis 5 Basic Financial Statements: Government -wide Financial Statements Statement of Net Position 18 Statement of Activities 22 Fund Financial Statements: Balance Sheet - Governmental Funds 26 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 29 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 30 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 35 Statement of Net Position - Proprietary Funds 36 Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds 37 Statement of Cash Flows - Proprietary Funds 38 Notes to the Financial Statements 41 Required Supplementary Information: Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget (GAAP Basis) and Actual - General Fund 86 Schedule of Changes in Net Position Liability and Related Ratios - Texas Municipal Retirement System 88 Schedule of Employer Contributions to Pension Plan - Texas Municipal Retirement System 90 Schedule of Changes in Postemployement Benefits Other Than Pension Liability and Related Ratios Texas Municipal Retirement System 93 Schedule of Changes in Postemployement Benefits Other Than Pension Liability and Related Ratios Post Employment Healthcare System 94 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual - PID No. 1 95 Combining and Individual Fund Financial Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds 98 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 100 Tc* TOWN OF TROPHY CLUB Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Court Technology 102 Court Security 103 Street Maintenance 104 Hotel Occupancy Tax 105 Recreation Programs 106 Debt Service Fund 107 Capital Projects Fund 108 Park Land Dedication 109 Combining Schedule of Net Position Discretely Presented Component Units 111 Combining Schedule of Activities Discretely Presented Component Units 112 Balance Sheet - Discretely Presented Component Units 114 Reconciliation of the Balance Sheet to the Statement of Net Position - Discretely Presented Component Units 115 Statement of Revenues, Expenditures and Changes in Fund Balances - Discretely Presented Component Units 116 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of the Discretely Presented Component Units to the Statement of Activities 117 STATISTICAL SECTION Financial Trends: Net Position by Component 120 Changes in Net Position 122 Fund Balances of Governmental Funds 126 Changes in Fund Balances of Governmental Funds 128 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property 133 Direct and Overlapping Property Tax Rates 134 Principal Property Taxpayers 136 Property Tax Levies and Collections 139 Debt Capacity: Ratios of Outstanding Debt by Type 140 Ratios of General Bonded Debt Outstanding 142 Direct and Overlapping Governmental Activities Debt 143 Demographic and Economic Information: Demographic and Economic Statistics 145 Principal Employers 146 Operating Information: Full -Time Equivalent City Government Employees by Function 148 Operating Indicators by Function 150 Tc* TOWN OF TROPHY CLUB INTRODUCTORY SECTION TC* TOWN OF TROPHY CLUB T(C*: TOWN OF TROPHY CLUB March 23, 2021 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 (Annual Report) for the Town of Trophy Club, Texas for the fiscal year ended September 30, 2020 is hereby issued. This report consists of management's representations concerning the finances of the Town. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making the representations, management of the Town has established a comprehensive internal control framework that is designed both to protect the Town's assets from loss, theft, or misuse and to compile sufficient and reliable information for the preparation of the Town's financial statements in conformity with GAAP. Internal controls should not outweigh their benefits; therefore, the Town's comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute assurance, that the financial statements are free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The Town's financial records have been prepared and audited by BrooksWatson & Company, PLLC, Certified Public Accountants, as required by the Town Charter. This Annual Report 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, 2020. 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, 2020, are fairly presented in conformity with GAAP. The independent auditors' report is presented as the first component of the financial section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Town's MD&A can be found immediately following the report of the independent auditor. Profile of the Town The Town of Trophy Club, Texas incorporated in 1985 as Texas' first premiere master planned community, is located in the North Central portion of Texas. This area of the State has proven to be one of the top 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 12,541 The Town is empowered to levy a property tax on real property located within its boundaries. The Town has a median household income of $147,477 and a median housing value of $400,500. 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 Dallas/Fort Worth unemployment rate of 6.3% while the national unemployment rate is 7.8% as of September 2020. Trophy Club has worked diligently to position itself for a significant future within DFW and the Alliance corridor. The Town has issued over 1,000 building permits for high end homes over the past 8 years, with 50 new residential building permits for a total of $17,596,468 and 1 commercial building permit for a total of $9,800,000 for Fiscal Year 2020. Additionally, the Town's tax base exceeded $1.8 billion net taxable value in 2020. 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 $16AM in savings over the life of the debt. In August of 2020 the Town refunded $3,550,000 in Certificates of Obligation Bonds for a savings of $500,000 over the remaining 10 years. 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 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). iii Public Hearing/Budget Adoption A public hearing on the proposed budget and 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 ending, September 30tn 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 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 iv goals. Management Team members utilize the strategic planning documents to help guide their budget planning and service/program implementation. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Trophy Club for its Annual Report for the fiscal year ended September 30, 2019. This was the tenth 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 Annual Report. 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 Annual Report 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 BrooksWatsonCo, 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 v Tc* TOWN OF TROPHY CLUB vi Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Town of Trophy Club Texas For its Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2019 Executive Director/CEO vii R� 02 J11gH a �i I I I I 3 I I I I Ill I (k;y i J( L7 0 1 v �� i 1W Town Manager Assistant Town Manager 682.237.2901 682.237.2984 IPIIWIJV— Administrative Analyst 682.237.2900 {F ple, � Town Attorney 682.237.2904 -[�*7f 1X 93 i N* "t 11 Town Secretary 682.237.2903 Records Analyst 682.237.2905 L1 Tc* TOWN OF TROPHY CLUB FINANCIAL SECTION xi C TOWN OF TROPHY CLUB Xii BROOKSWATSON & CO. CERTIFIED PUBLIC ACCOUNTANTS 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 discretely presented component units, each major fund, and the aggregate remaining fund information of the Town of Trophy Club, Texas (the "Town"), as of and for the year ended September 30, 2020, 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 are 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 these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the 14950 Heathrow Forest Pkwy I Suite 530 1 Houston, TX 77032 1 Tel: 281.907.8788 1 Fax: 888.875.0587 1 www.BrooksWatsonCPA.com 1 financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit 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 discretely presented component units, each major fund, and the aggregate remaining fund information of the Town as of September 30, 2020 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. 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 generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Trophy Club basic financial statements. The combining and 2 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 23, 2021 on our consideration of the Town's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Town's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town's internal control over financial reporting and compliance. BrooksWatson & Co., PLLC Certified Public Accountants Houston, Texas March 23, 2021 3 Tc* TOWN OF TROPHY CLUB Town of Trophy Club, Texas MANAGEMENT'S DISCUSSION AND ANALYSIS September 30, 2020 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, 2020. 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, 2020 by $65,032,094. • The Town's total net position increased by $369,643. 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 $16,358,617 at September 30, 2020, an increase of $851,580 from the prior fiscal year; this includes an increase of $1,724,168 in the general fund, an increase of $232,970 in the debt service fund, a decrease of $1,583,426 in the capital projects fund, a decrease of $992 in the PID No. 1 fund, and an increase of $478,860 in the nonmajor governmental funds. • At the end of the fiscal year, unassigned fund balance for the general fund was $6,988,719 or 66% of total general fund expenditures. 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. 5 Town of Trophy Club, Texas MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued September 30, 2020 The statement of activities presents information showing how the Town's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the Town that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the Town include general government, police, emergency medical services, community development, parks and recreation, streets, court, council and administration. Normally, these operations are financed by property taxes, sales taxes, and franchise fees. The business -type activities of the Town include Trophy Club Park and Storm Drainage Utility operations. The government -wide financial statements include not only the Town itself (known as the primary government), but also the legally separate component 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 demonstrate compliance with finance -related legal requirements. All of the funds of the Town can be divided into two categories: governmental funds and proprietary funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in assessing a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of 0 Town of Trophy Club, Texas MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued September 30, 2020 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 adopted an annual appropriated budget for each fund other than the grant fund. A budgetary comparison statement has been provided for each fund with an adopted budget 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 36-39 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. 7 Town of Trophy Club, Texas MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued September 30, 2020 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 41-84 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 $65,032,094 as of September 30, 2020, in the primary government. The largest portion of the Town's net position, $52,182,832 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 $6,821,486 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 of Trophy Club, Texas MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued September 30, 2020 Statement of Net Position: The following table reflects the condensed Statement of Net Position: 2020 2019 Governmental Business -Type Governmental Business -Type Activities Activities Total Activities Activities Total Current and other assets $ 18,646,044 $ 721,486 $ 19,367,530 $ 18,125,219 $ 754,874 $ 18,880,093 Capital assets, net 69,044,358 1,803,997 70,848,355 71,314,642 1,824,936 73,139,578 Long-term receivables 23,031,503 - 23,031,503 24,371,503 - 24,371,503 Total Assets 110,721,905 2,525,483 113,247,388 113,811,364 2,579,810 116,391,174 Deferred Outflows of Resources 3,314,815 - 3,314,815 4,387,577 - 4,387,577 Current liabilities 5,117,270 175,286 5,292,556 5,013,048 168,549 5,181,597 Long-term liabilities 44,980,548 522,522 45,503,070 49,930,132 686,939 50,617,071 Total Liabilities 50,097,818 697,808 50,795,626 54,943,180 855,488 55,798,668 Deferred Inflows of Resources 734,483 - 734,483 317,632 - 317,632 Net Position: Net investment in capital assets 51,061,357 1,121,475 52,182,832 52,718,444 982,997 53,701,441 Restricted 6,821,486 - 6,821,486 6,112,682 - 6,112,682 Unrestricted 5,321,576 706,200 6,027,776 4,107,003 741,325 4,848,328 Total Net Position $ 63,204,419 $ 1,827,675 $ 65,032,094 $ 62,938,129 $ 1,724,322 $ 64,662,451 Current and other assets of governmental activities were $18,646,044 and $18,125,219 as of September 30, 2020 and September 30, 2019, respectively. The increase is primarily due to grant funds received from the CARES Act to support expenses pertained to the COVID-19 pandemic response increasing cash, in addition to some nonrecurring grant receivables. Long-term receivables were $23,031,503 and $24,371,503 as of September 30, 2020 and September 30, 2019, respectively. The decrease is due to the current year collection of the assessments, which is consistent with the PID assessment service plan. Current liabilities of governmental activities were $5,117,270 and $5,013,048 as of September 30, 2020 and September 30, 2019, respectively. The increase is primarily a result of the increase in the current portion of long term debt in the current year, and is consistent with the debt service schedules. Total long-term liabilities decreased by $4,949,584 or 10% due to principal payments made in the current year and the reduction in the net pension liability. Deferred outflows and inflows of resources experienced changes due to the market fluctuation and the changes in investment returns impacting pension liability balances. 9 Town of Trophy Club, Texas MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued September 30, 2020 Statement of Activities: The following table provides a summary of the Town's changes in net position: For the Year Ended September 30, 2020 For the Year Ended September 30, 2019 Total Total Governmental Business -Type Primary Governmental Business -Type Primary Revenues Program revenues: Charges for services $ 1,797,916 $ 619,011 $ 2,416,927 $ 3,266,108 $ 539,295 $ 3,805,403 Operating grants and contributions 2,056,622 - 2,056,622 1,392,787 - 1,392,787 Capital grants and contributions - 68,146 68,146 2,127,040 3,360 2,130,400 General revenues: Property tax 9,347,776 - 9,347,776 8,974,426 - 8,974,426 Sales tax 1,445,994 - 1,445,994 1,271,864 - 1,271,864 Franchise and local taxes 850,543 - 850,543 911,738 - 911,738 Occupancy taxes 387,759 - 387,759 669,983 - 669,983 Investment income 183,858 2,711 186,569 512,922 11,818 524,740 Other revenues 414,384 - 414,384 235,107 - 235,107 Total Revenues 16,484,852 689,868 17,174,720 19,361,975 554,473 19,916,448 Expenses General government 3,561,521 - 3,561,521 3,650,893 - 3,650,893 Public safety 5,139,151 - 5,139,151 5,109,461 - 5,109,461 PID activities 50,152 - 50,152 26,875 - 26,875 Parks and recreation 2,593,588 - 2,593,588 2,871,283 - 2,871,283 Community development 563,312 - 563,312 717,215 - 717,215 Streets and infrastructure 2,052,018 - 2,052,018 2,371,290 - 2,371,290 Interest on long-term debt 1,639,671 - 1,639,671 2,663,286 - 2,663,286 Trophy Club Park - 229,670 229,670 - 122,186 122,186 Storm drainage - 93,912 93,912 - 131,370 131,370 Total Expenses 15,599,413 323,582 15,922,995 17,410,303 253,556 17,663,859 Change in Net Position Before Transfers 885,439 366,286 1,251,725 1,951,672 300,917 2,252,589 Transfers 262,933 (262,933) - 86,937 (86,937) - Special item (882,082) - (882,082) - - - Total (619,149) (262,933) (882,082) 86,937 (86,937) - Change in Net Position 266,290 103,353 369,643 2,038,609 213,980 2,252,589 Beginning Net Position 62,938,129 1,724,322 64,662,451 60,899,520 1,510,342 62,409,862 Ending Net Position $ 63,204,419 $ 1,827,675 $ 65,032,094 $ 62,938,129 $ 1,724,322 $ 64,662,451 10 Town of Trophy Club, Texas MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued September 30, 2020 Graphic presentations of selected data from the summary tables are displayed below to assist in the analysis of the Towns activities. Sales 9°/ Governmental Activities — Revenues Occupancy Investment taxes income Otherrevenues Zoo 1% 3% Chargesfor services 11% Propertytax 57% Grants and -ontributions 12% For the year ended September 30, 2020, revenues from governmental activities totaled $16,484,852. Property tax, grants and contributions, special assessments and sales tax are the Town's largest general revenue sources. Overall revenue increased $1,468,192 or 45% from the prior year. Charges for services decreased by $1,468,192 or 45% due primarily to a reduction in the amount PID special assessments received during the year, which is consistent with the PID's special assessment service schedule and service assessment plan, in addition to a reduction in fines and fees received compared to the prior year due to the impact of COVID-19. Operating grants and contributions increased by $663,835 or 48% primarily due to grants received from the CARES Act to support expenses pertained to the COVID-19 pandemic response. Capital grants and contributions decreased by $2,127,040 due to the nonrecurring capital contributions received in the previous year from TXDOT. Sales and tax increased by $174,130 or 14% primarily due to the added online sales caused by more residents staying in and shopping online as a result of the COVID-19 pandemic, in addition to the continued growth within the Town. Occupancy taxes decreased by $282,224 or 42% which is directly related to the impact of COVID-19 travel restrictions. Investment income decreased by $329,064 or 64% due to the impact of the market and realization of lower interest rates. Other revenues increased by $179,277 or 76%, primarily as a result of nonrecurring refunds received in the park land dedication fund and a settlement received in the park land dedication fund. All other revenues remained relatively stable when compared to the previous year. 11 Town of Trophy Club, Texas MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued September 30, 2020 This graph shows the governmental function expenses of the Town: Governmental Activities — Expenses Interest and fiscal charges 10% Streets ai infrastnict 13% Community development 4% Parks recrea 17°/ vent !ty For the year ended September 30, 2020, expenses for governmental activities totaled $15,599,413. This represents a decrease of $1,810,890 or 10% from the prior year. The Town's largest expense category is public safety, which totaled $5,139,151 at year-end. Parks and recreation expenses decreased by $277,695 or 10% primarily due to a reduction in nonrecurring non -capital park projects in the previous year. Community development expenses decreased by $153,903 or 21% due to a reduction in the amount of professional services provided when compared to the previous year. Streets and infrastructure expenses reduced by $319,272 or 13% due to a reduction in the current year depreciation expenses for street and infrastructure capital assets. Interest on long-term debt decreased by $1,023,615 or 38% which is consistent with the debt service schedule and is primarily due to the reduction in the interest portion of the debt service payment for the special assessment bond. All other expenses remained relatively consistent when compared to the previous year. During the current year, the town disposed of the old town hall, and any related assets, resulting in a loss on disposal of asset which the Town recognized as a special item in the amount of $882,082 in the current year. 12 Town of Trophy Club, Texas MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued September 30, 2020 Business -type activities are shown comparing operating costs to revenues generated by related services. 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 Business -Type Activities - Revenues and Expenses Charges for services Expenses Enterprise funds For the year ended September 30, 2020, charges for services by business -type activities totaled $619,011. This is an increase of $79,716 or 15% from the previous year. The increase was primarily due to the park being temporarily closed for a portion of the previous year for repairs and maintenance and after having been flooded. In addition, there was an increase of $64,786 in capital grants, which was a result of a new nonrecurring Texas Parks and Wildlife grant received in the current year. Total business -type activity expenses increased by $70,026 or 28%. Most of the increase is attributed to the unanticipated expense of a reimbursement of past received grant funds that during the current year FEMA determined to have been paid to the Town in error. 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 September 30, 2020, the Town's governmental funds reported combined fund balances of $16,358,617, an increase of $851,580 in comparison with the prior year. Approximately 43% of this amount, $6,988,719, 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 13 Town of Trophy Club, Texas MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued September 30, 2020 committed to indicate that it is 1) not in spendable form $389,112 or 2) committed for particular purposes $174,654. As of the end of the year the general fund reflected a total fund balance of $7,547,423. General fund balance increased by $1,724,168 during the current year. This increase can be attributed to greater than anticipated revenues, caused primarily to grant funds received to assist the Town in supporting expenses associated with the COVID-19 pandemic, in addition to expenditures being less than anticipated, primarily in community development and parks and recreation, caused by many programs in these departments not occurring due to the COVID-19 pandemic. The debt service fund had an ending fund balance of $706,640 at September 30, 2020, an increase of $232,970 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 $2,355,930 and property tax revenue of $2,328,496. The capital projects fund had an ending fund balance of $1,984,646. The capital projects fund decreased $1,583,426 when compared to the previous year. The decrease was a result of current year capital outlay expenditures exceeding interest income, which is consistent with that which was budgeted. The PID No. 1 fund reflected an ending fund balance of $3,971,196. The fund balance decreased $992, which is a result of debt service expenditures exceeding property assessments and other revenues. 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 $1,731,975. Unrestricted net position at the close of the fiscal year for the Town's utility funds amounted to $706,200, an increase of $35,125 over the previous year. Total investment in capital assets, net of related debt was $1,121,475, and capital assets, net of depreciation totaled $1,803,997. GENERAL FUND BUDGETARY HIGHLIGHTS Total budgeted revenues of $11,311,480 were less than actual revenues of $12,247,375, resulting in a positive revenue variance of $935,895. The positive variance was primarily the result of greater than expected revenues from property tax, sales tax, license and permits, and intergovernmental revenues. Total budgeted expenditures of $11,699,943 were greater than actual expenditures of $10,644,689, resulting in a positive expenditure variance of $1,055,254. The variance in total expenditures was primarily due to positive variances within the community development and parks and recreation departments. 14 Town of Trophy Club, Texas MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued September 30, 2020 CAPITAL ASSETS As of the end of the year, the Town's governmental activities funds had invested $69,044,358 in a variety of capital assets and infrastructure, net of accumulated depreciation. The Town's business -type activities funds had invested $1,803,997 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 year include the following: • Investments in Trophy Club Drive, Indian Creek, Phoenix Drive and Meadowbrook Lane totaling $1,599,123. • Purchase of new vehicles for fire and police totaling $84,721. • Purchase of new equipment for parks and recreation department totaling $219,274. • Fence replacement at Trophy Club Park totaling $33,365. More detailed information about the Town's capital assets is presented in note 4.0 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 $3,210,455 for governmental activities and $159,418 for business -type activities, from the prior year. The total bonds payable at the close of the fiscal year, net of premiums and discounts, was $46,651,927 for governmental -activities and $682,522 for business -type activities. Of this amount, $19,464,000 (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.E to the financial statements. ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES The Town is approximately 90% residential, and 10% commercial, with both residential and commercial development substantially built out. The Town issued 50 residential construction permits in fiscal year 2020 and 1 commercial permit for a total of $27,396,468. The Town does not expect this trend to continue. The Town estimates only 50-60 additional residential permits will be pulled in the future and 3-5 large commercial permits. PD-30 finished most commercial construction in fiscal year 2020 and the Aloft Hotel and the townhouses are to be completed in FY21. The large multi -family complex and a large development of retail along SH114 are completed. There are still 2-3 commercial buildings projected in the PD-30 area. 15 Town of Trophy Club, Texas MANAGEMENT'S DISCUSSION AND ANALYSIS, Continued September 30, 2020 In fiscal year 2021, General Fund revenues are budgeted to increase 4.25% over fiscal year 2020 estimated revenues, while expenditures are budgeted to increase by 9.83% over fiscal year 2020 estimated expenditures. The larger changes are due to estimates and expenditure reductions during the COVID-19 pandemic. The fiscal year 2021 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 Manager, 1 Trophy Wood Drive, Trophy Club, Texas, 76262. This information can also be accessed on the Town of Trophy Club's website at www.trophyclub.org. 16 BASIC FINANCIAL STATEMENTS 17 Town of Trophy Club, Texas STATEMENT OF NET POSITION (Page 1 of 2) September 30, 2020 Primary Government Governmental Business -Type Activities Activities Total Assets Current assets: Cash and cash equivalents $ 16,571,967 $ 627,565 $ 17,199,532 Taxes receivable, net 410,117 - 410,117 Special assessments receivable - current 1,340,000 - 1,340,000 Receivables, net 289,613 40,753 330,366 Intergovernmental receivable - 50,271 50,271 Due from other governments 31,738 - 31,738 Prepaid and other assets 2,609 2,897 5,506 Total Current Assets 18,646,044 721,486 19,367,530 Noncurrent assets: Capital assets: Non -depreciable 10,478,676 - 10,478,676 Net depreciable capital assets 58,565,682 1,803,997 60,369,679 Advances to component unit 386,503 - 386,503 Special assessments receivable - noncurrent 22,645,000 - 22,645,000 Total Noncurrent Assets 92,075,861 1,803,997 93,879,858 Total Assets 110,721,905 2,525,483 113,247,388 Deferred Outflows of Resources Pension contributions 539,353 - 539,353 OPEB contributions 824 - 824 OPEB experience 34,332 - 34,332 Deferred charge on refunding 2,740,306 - 2,740,306 Total Deferred Outflows of Resources 3,314,815 - 3,314,815 Component Units 469,490 156,600 626,090 2,538,765 335,252 2,874,017 3,500,107 19 Town of Trophy Club, Texas STATEMENT OF NET POSITION (Page 2 of 2) September 30, 2020 Primary Government Governmental Business -Type Activities Activities Total Liabilities Current liabilities: Accounts payable 562,749 13,422 576,171 Accrued liabilities 506,503 - 506,503 Accrued interest payable 328,628 1,864 330,492 Compensated absences - current 311,390 - 311,390 Long-term debt due within one year 3,408,000 160,000 3,568,000 Total Current Liabilities 5,117,270 175,286 5,292,556 Noncurrent liabilities: Long-term debt due in more than one year 43,243,927 522,522 43,766,449 Compensated absences - noncurrent 34,599 - 34,599 OPEB liability 311,242 - 311,242 Net pension liability 1,390,780 - 1,390,780 Advances from primary government - - - Total Noncurrent Liabilities 44,980,548 522,522 45,503,070 Total Liabilities 50,097,818 697,808 50,795,626 Deferred Inflows of Resources Pension investment earnings 609,044 - 609,044 Pension experience 115,038 - 115,038 Pension changes in assumptions 550 - 550 OPEB assumption changes 9,851 - 9,851 Total Deferred Inflows of Resources 734,483 - 734,483 Net Position Net investment in capital assets 51,061,357 1,121,475 52,182,832 Restricted for: Municipal court 32,838 - 32,838 Debt service 706,640 - 706,640 Public safety 9,886 - 9,886 PID Activities 3,971,196 - 3,971,196 Street maintenance 184,556 - 184,556 Tourism 1,530,643 - 1,530,643 Parks 385,727 - 385,727 Unrestricted 5,321,576 706,200 6,027,776 Total Net Position $ 63,204,419 $ 1,827,675 $ 65,032,094 See Notes to Financial Statements. 20 Component Units 5,882 8,402 110,000 124,284 2,045,124 386,503 2,431,627 2,555,911 718,893 222,811 2,492 $ 944,196 21 Town of Trophy Club, Texas STATEMENT OF ACTIVITIES (Page 1 of 2) For the Year Ended September 30, 2020 Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Primary Government Governmental Activities General government $ 746,961 $ 479,513 $ Mann er's office 708 646 - gI Human resources 423,299 Finance 607,160 - Information services 636,688 - Legal 102,606 - Court 79,609 128,925 Police 2,556,947 - Fire 1,221,699 - Emergency medical services 1,280,896 277,313 Facilities management 336,161 - Parks 2,593,588 - Community development 498,920 - Tourism 64,392 - Streets and infrastructure 2,052,018 - PID Activities 50,152 912,165 Interest on long-term debt 1,639,671 - Total Governmental Activities 15,599,413 1,797,916 Business -Type Activities Trophy Club Park 229,670 188,708 Storm drainage utility 93,912 430,303 Total Business -Type Activities 323,582 619,011 799,938 $ 743,066 513,618 2,056,622 Total Primary Government $ 15,922,995 $ 2,416,927 $ 2,056,622 See Notes to Financial Statements. 68,146 68,146 68,146 22 Net (Expense) Revenue and Changes in Net Position Primary Government Governmental Business -Type Component Activities Activities Total Units $ 532,490 $ - $ 532,490 $ - (708,646) - (708,646) - (423,299) - (423,299) - (607,160) - (607,160) - (636,688) - (636,688) - (102,606) - (102,606) - 49,316 - 49,316 - (1,813,881) - (1,813,881) - (708,081) - (708,081) - (1,003,583) - (1,003,583) - (336,161) - (336,161) - (2,593,588) - (2,593,588) - (498,920) - (498,920) - (64,392) - (64,392) - (2,052,018) - (2,052,018) - 862,013 - 862,013 - (1,639,671) - (1,639,671) - (11,744,875) - (11,744,875) - - 27,184 27,184 - - 336,391 336,391 - - 363,575 363,575 - (11,744,875) 363,575 (11,381,300) - 23 Town of Trophy Club, Texas STATEMENT OF ACTIVITIES (Page 2 of 2) For the Year Ended September 30, 2020 Expenses Component Units 4B Economic Development Corporation 171,811 Tax Increment Reinvestment Zone #1 13,411 Crime Control and Prevention 200,994 Total Component Units $ 386,216 $ See Notes to Financial Statements. Program Revenues Operating Capital Charges for Grants and Grants and Services Contributions Contributions 5,669 $ 5,669 $ - General Revenues: Taxes Property taxes Sales and mixed beverage taxes Franchise and local taxes Occupancy tax Otherrevenues Investment income Transfers Special item - asset disposal Total General Revenues and Transfers Change in Net Position Beginning Net Position Ending Net Position 24 Net (Expense) Revenue and Changes in Net Position Primary Government Governmental Business -Type Component Activities Activities Total Units 9,347,776 1,445,994 850,543 387,759 414,384 183,858 262,933 (882,082) 12,011,165 266,290 62,938,129 2,711 (262,933) (260,222) 103,353 1,724,322 9,347,776 1,445,994 850,543 387,759 414,384 186,569 (882,082) 11,750,943 (171,811) (13,411) (195,325) (380,547) 129,579 911,951 67,306 1,108,836 369,643 728,289 64,662,451 215,907 $ 63,204,419 $ 1,827,675 $ 65,032,094 $ 944,196 25 Town of Trophy Club, Texas BALANCE SHEET GOVERNMENTAL FUNDS September 30, 2020 Debt Capital General Service Projects PID No. 1 Assets Cash and cash equivalents $ 7,613,333 $ 706,054 $ 2,194,239 $ 3,971,196 Taxes receivable, net 318,051 19,181 - - Special assessments receivable - - - 23,985,000 Accounts receivable, net 289,613 - - - Due from other governments 31,738 - - - Due from other funds - - - - Prepaid and other assets 2,609 - - - Advances to component units 386,503 - - - Total Assets $ 8,641,847 $ 725,235 $ 2,194,239 $ 27,956,196 Liabilities Accounts payable $ 341,838 $ - $ 209,593 $ - Accrued liabilities 506,503 - - - Total Liabilities 848,341 - 209,593 - Deferred Inflows of Resources Unavailable revenue - property taxes 62,671 18,595 - - Unavailable revenue - fines and forfeitures 25,509 - - - Unavailable revenue - emergency medical services 132,586 - - - Unavailable revenue - special assessments - - - 23,985,000 Unavailable revenue - property liens 25,317 - - - Total Deferred Inflows of Resources 246,083 18,595 - 23,985,000 Fund Balances Nonspendable: Prepaid items 2,609 - - - Advances to component unit 386,503 - - - Restricted for: Debt service - 706,640 - - Capital projects - - 1,984,646 - Municipal court - - - - Public safety - - - - Street maintenance - - - - Tourism - - - - Parks - - - - PID Activities - - - 3,971,196 Committed for: Police 169,592 - - - Recreation programs - - - - Unassigned 6,988,719 - - - Total Fund Balances 7,547,423 706,640 1,984,646 3,971,196 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 8,641,847 $ 725,235 $ 2,194,239 $ 27,956,196 See Notes to Financial Statements. 26 Nonmajor Total Governmental Governmental Funds Funds $ 2,087,145 $ 16,571,967 72,885 410,117 - 23,985,000 - 289,613 - 31,738 - 2,609 - 386,503 $ 2,160,030 $ 41,677,547 $ 11,318 $ 562,749 - 506,503 11,318 1,069,252 - 81,266 - 25,509 - 132,586 - 23,985,000 - 25,317 - 24,249,678 - 2,609 - 386,503 - 706,640 - 1,984,646 32,838 32,838 9,886 9,886 184,556 184,556 1,530,643 1,530,643 385,727 385,727 - 3,971,196 - 169,592 5,062 5,062 - 6,988,719 2,148,712 16,358,617 $ 2,160,030 $ 41,677,547 27 C TOWN OF TROPHY CLUB Town of Trophy Club, Texas RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION GOVERNMENTAL FUNDS September 30, 2020 Fund Balances - Total Governmental Funds $ 16,358,617 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 10,478,676 Capital assets - net depreciable 58,565,682 Other long-term assets are not available to pay for current -period expenditures and, therefore, are deferred in the governmental funds. 24,249,678 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 experience (115,038) Pension changes in assumptions (550) Pension investment earnings (609,044) OPEB changes in assumptions (9,851) 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 539,353 OPEB experience 34,332 OPEB contributions 824 Some liabilities, including bonds payable and deferred charges, are not reported as liabilities in the governmental funds. Accrued interest (328,628) Deferred charges on bond refunding 2,740,306 Bond premium (3,872,927) Net pension liability (1,390,780) OPEB liability (311,242) Compensated absences (345,989) Non -current liabilities due in one year (3,408,000) Non -current liabilities due in more than one year (39,371,000) Net Position of Governmental Activities $ 63,204,419 29 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, 2020 Revenues Property tax Sales and mixed beverage taxes Franchise and local taxes Occupancy tax Special assessments License and permits Intergovernmental Charges for services Fines and forfeitures Investment income Other revenue General 7,031,351 1,158,083 850,543 479,513 2,005,341 292,490 128,166 75,137 226,751 Total Revenues 12,247,375 Expenditures Current: General government Manager's office Human resources Finance Information services Legal Court Police Fire Emergency medical services Facilities management Parks Community development Tourism Streets PID activities Debt Service: Principal Interest and fiscal charges Bond issuance costs Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Debt Capital Service Projects $ 2,328,496 $ - 51,281 - 9,664 44,234 2,389,441 44,234 - - 6,212 682,231 - - 428,851 - - 601,249 - - 621,055 - - 102,606 - - 77,456 - - 2,500,524 - - 1,256,964 - - 1,219,728 - - 336,161 - - 2,041,863 - 491,941 - - 192,608 - - 88,205 1,718,000 - 3,247 637,930 - - 67,636 - - 1,621,448 10,644,689 2,423,566 1,627,660 1,602,686 (34,125) (1,583,426) 30 Nonmajor Total Governmental Governmental PID No.1 Funds Funds $ - $ - $ 9,359,847 - 287,911 1,445,994 - - 850,543 - 387,759 387,759 2,187,165 - 2,187,165 - - 479,513 - - 2,056,622 - 4,457 296,947 - 4,711 132,877 42,568 12,255 183,858 - 159,864 386,615 2,229,733 856,957 17,767,740 - - 6,212 - - 682,231 - - 428,851 - - 601,249 - - 621,055 - - 102,606 - 409 77,865 - - 2,500,524 - - 1,256,964 - - 1,219,728 - - 336,161 - 2,424 2,044,287 - - 491,941 - 64,385 64,385 - 195,811 388,419 50,152 - 50,152 1,275,000 - 3,081,205 905,573 - 1,546,750 - - 67,636 - 113,568 1,735,016 2,230,725 376,597 17,303,237 (992) 480,360 464,503 31 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, 2020 Other Financing Sources (Uses) Transfers in Transfers (out) Refunding bonds issued Payment to refunding bond escrow agent Sale of general capital assets Insurance recoveries Total Other Financing Sources (Uses) Net Change in Fund Balances Beginning fund balances Ending Fund Balances See Notes to Financial Statements. Debt Capital General Service Projects 61,500 202,933 - - 3,550,000 - - (3,485,838) - 32,213 - - 27,769 - - 121,482 267,095 - 1,724,168 232,970 (1,583,426) 5,823,255 473,670 3,568,072 $ 7,547,423 $ 706,640 $ 1,984,646 32 Nonmajor Total Governmental Governmental PID No.1 Funds Funds - - 264,433 - (1,500) (1,500) - - 3,550,000 - - (3,485,838) - - 32,213 - - 27,769 - (1,500) 387,077 (992) 478,860 851,580 3,972,188 1,669,852 15,507,037 $ 3,971,196 $ 2,148,712 $ 16,358,617 33 C TOWN OF TROPHY CLUB 34 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 For the Year Ended September 30, 2020 Amounts reported for governmental activities in the statement of activities are different because: Net changes in fund balances - total governmental funds $ 851,580 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 2,048,348 Depreciation expense (3,404,337) Carrying value of capital assets disposed (914,295) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. (1,310,657) 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 (40,704) Accrued interest (100,893) Pension expense 80,987 OPEB expense (36,390) 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 287,455 Principal payments on long-term debt 3,081,205 Current year debt refunding 3,480,000 Bond issuance (3,550,000) Change in Net Position of Governmental Activities $ 266,290 See Notes to Financial Statements. 35 Town of Trophy Club, Texas STATEMENT OF NET POSITION PROPRIETARY FUNDS September 30, 2020 Trophy Club Storm Drainage Park Utility Total Assets Current Assets Cash and cash equivalents $ 13,079 $ 614,486 $ 627,565 Accounts receivable - 40,753 40,753 Intergovernmental receivable 50,271 - 50,271 Prepaid items 2,897 - 2,897 Total Current Assets 66,247 655,239 721,486 Noncurrent Assets Capital assets: Net depreciable capital assets 42,875 1,761,122 1,803,997 Total Noncurrent Assets 42,875 1,761,122 1,803,997 Total Assets 109,122 2,416,361 2,525,483 Liabilities Current Liabilities Accounts payable $ 13,422 $ - $ 13,422 Accrued interest - 1,864 1,864 Long-term debt due within one year - 160,000 160,000 Total Current Liabilities 13,422 161,864 175,286 Noncurrent Liabilities Long-term debt due in more than one year - 522,522 522,522 Total Liabilities 13,422 684,386 697,808 Net Position Net investment in capital assets 42,875 1,078,600 1,121,475 Unrestricted 52,825 653,375 706,200 Total Net Position $ 95,700 $ 1,731,975 $ 1,827,675 See Notes to Financial Statements. 36 Town of Trophy Club, Texas STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For the Year Ended September 30, 2020 Trophy Club Storm Drainage Park Utility Total Operating Revenues Charges for services $ 188,708 $ 430,303 $ 619,011 Intergovernmental revenues 68,146 - 68,146 Total Operating Revenues 256,854 430,303 687,157 Operating Expenses Salaries and benefits 44,572 - 44,572 Supplies and materials 13,121 - 13,121 Repairs and maintenance 63,108 - 63,108 Utilities 9,631 13,024 22,655 Other operating expenses 96,017 34,224 130,241 Depreciation 3,221 51,083 54,304 Total Operating Expenses 229,670 98,331 328,001 Operating Income (Loss) 27,184 331,972 359,156 Nonoperating Revenues (Expenses) Investment income - 2,711 2,711 Interest and fiscal expense - 4,419 4,419 Total Nonoperating Revenues (Expenses) - 7,130 7,130 Income Before Capital Contributions and Transfers 27,184 339,102 366,286 Capital Contributions and Transfers Transfers (out) (20,000) (242,933) (262,933) Total Capital Contributions and Transfers (20,000) (242,933) (262,933) Change in Net Position 71184 96,169 103,353 Beginning net position 88,516 1,635,806 1,724,322 Ending Net Position $ 95,700 $ 1,731,975 $ 1,827,675 See Notes to Financial Statements. 37 Town of Trophy Club, Texas STATEMENT OF CASH FLOWS PROPRIETARY FUNDS (Page I of 2) For the Year Ended September 30, 2020 Trophy Club Storm Drainage Park Utility Total Cash Flows from Operating Activities Payments to employees $ (44,572) $ - $ (44,572) Payments to suppliers (101,792) (50,474) (152,266) Receipts from customers 206,583 425,155 631,738 Net Cash Provided (Used) by Operating Activities 60,219 374,681 434,900 Cash Flows from Noncapital Financing Activities Transfers (out) (20,000) (242,933) (262,933) Net Cash Provided (Used) by Noncapital Financing Activities (20,000) (242,933) (262,933) Cash Flows from Capital and Related Financing Activities Acquisition and construction of capital assets (33,365) - (33,365) Interest paid on capital debt - 5 5 Principal paid on capital debt - (155,000) (155,000) Net Cash Provided (Used) by Capital and Related Financing Activities (33,365) (154,995) (188,360) Cash Flows from Investing Activities Interest on investments - 2,711 2,711 Net Cash Provided by Investing Activities - 2,711 2,711 Net Increase (Decrease) in Cash and Cash Equivalents 6,854 (20,536) (13,682) Beginning cash and cash equivalents 6,225 635,022 641,247 Ending Cash and Cash Equivalents $ 13,079 $ 614,486 $ 627,565 See Notes to Financial Statements. 0. Town of Trophy Club, Texas STATEMENT OF CASH FLOWS PROPRIETARY FUNDS (Page 2 of 2) For the Year Ended September 30, 2020 Trophy Club Storm Drainage Park Utility Total Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) $ 27,184 $ 331,972 $ 359,156 Adjustments to reconcile operating income (loss) to net cash provided (used): Depreciation 3,221 51,083 54,304 Changes in Operating Assets and Liabilities: (Increase) Decrease in: Accounts receivable (50,271) (5,148) (55,419) Prepaid (1,447) - (1,447) Increase (Decrease) in: Accounts payable 4,960 (3,226) 1,734 Due from other funds 76,572 - 76,572 Net Cash Provided (Used) by Operating Activities $ 60,219 $ 374,681 $ 434,900 See Notes to Financial Statements. 39 sommomom- TOWN OF TROPHY CLUB 40 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS September 30, 2020 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. 41 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 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 Town can impose its will on the 4B and affect the day-to-day operations of the 4B by removing appointed board members at will. The scope of public service of the 4B benefits the Town and its citizens and is operated within the geographic boundaries of the Town. Since the 4B's governing body is not substantively the same as the governing body of the primary government, does not provide services entirely, or almost entirely to the primary government, nor does it maintain debt of any type that are repaid using Town resources, it has been reported as a discretely presented component unit. Tax Increment Reinvestment Zone #1 The Tax Increment Reinvestment Zone #1 ("TIRZ #1") serves all citizens of the Town and is governed by a board appointed by the Town's elected council. The Town can impose its will on the TIRZ #1 and affect the day-to-day operations of the TIRZ #1 by removing appointed board members at will. The scope of public service of the TIRZ #1 benefits the Town and its citizens and is operated within the geographic boundaries of the Town. Since the TIRZ's governing body is not substantively the same as the governing body of the primary C,W Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 government, does not provide services entirely, or almost entirely to the primary government, nor does it maintain debt of any type that are repaid using Town resources, it has been reported as a discretely presented component unit. Crime Control and Prevention District The Crime Control and Prevention District ("CCPD") was formed under Chapter 363 of the Texas Local Government Code, the Crime Control and Prevention Act. The CCPD is organized exclusively to act on behalf of the Town to finance crime control within the Town. The CCPD is governed by a seven member board appointed by the Town Council. The annual budget and issuance of debt must be approved by the Town Council. Since the CCPD's governing body is not substantively the same as the governing body of the primary government, does not provide services entirely, or almost entirely to the primary government, nor does it maintain debt of any type that are repaid using Town resources, it has been reported as a discretely presented component unit. Separate financial statements for the 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. 43 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 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 Service Fund is used to account for the accumulation of financial resources for the payment of principal, interest and related costs on long-term debt paid primarily from taxes levied by the Town. The fund balance of the Debt Service Fund is restricted to signify the amounts that are restricted exclusively for debt service expenditures. Capital Projects Fund The Capital Projects Fund is used to account for funds received and expended for acquisition and construction of infrastructure and other capital assets. Public Improvement District (PID) No.1 This fund accounts for bond proceeds, assessments and related debt associated with the issuance of bonds issued by the Town for the Public Improvement District. 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 determination 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 depreciation. 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 44 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 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. Park Land Dedication Fund This fund is used to account for park revenues received by and expended by the Town. Fig Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 Grant Fund This fund is used to account for grant monies 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. 46 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 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, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. Because the Town, at its option, can withdraw funds within a twenty-four hour period from TexPool and Texas Class, these investments are considered to be cash equivalents. State statutes authorize the Town to invest in (1) obligations of the United States or its agencies and instrumentalities; (2) direct obligations of the State of Texas or its agencies; (3) other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the State of Texas or the United States; (4) obligations of states, agencies, counties, cities, and other political subdivisions of any state having been rated as to investment quality by a nationally recognized investment rating firm and having received a rating of not less than A or its equivalent; (5) certificates of deposit by state and national banks domiciled in this state that are (A) guaranteed or insured by the Federal Deposit Insurance Corporation, or its successor; or, (B) secured by obligations that are described by (1) - (4); or, (6) fully collateralized direct repurchase agreements having a defined termination date, secured by obligations described by (1), pledged with third party selected or approved by the Town, and placed through a primary government securities dealer. The Town's investments are governed by the same state statutes. All investments are recorded at fair value based on quoted market prices. 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 measurement 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 ryi Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 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. W. Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 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 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. 49 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 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. 50 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 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 death 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 51 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 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). 52 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 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 dedicated 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 53 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 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, court technology, court security, street maintenance, hotel/motel tax, crime control and prevention, recreation programs, debt service fund, capital projects, park land dedication fund, 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 year. During the fiscal year ended September 30, 2020, no supplemental budget appropriations were made. As of September 30, 2020, expenditures exceeded appropriations at the legal level of control for the Capital Projects fund in the amount of $79,660. 54 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 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 $6,821,486. Of which, $32,838 and $1,530,643, a total of $1,563,481, is restricted by enabling legislation. B. Deficit Equity At September 30, 2020, the Component Unit, Tax Increment Reinvestment Zone #1 had a deficit fund balance of $354,812. The deficit balances will be eliminated in the future 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, 2020 and during the year ended September 30, 2020 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. 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. 55 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 As of September 30, 2020, the Town had the following investments: Investment Type External investment pools Weighted Carrying Average Maturity Value (Years) 4,733,958 0.12 Total fair value $ 4,733,958 Portfolio weighted average maturity 0.12 Interest rate risk: In compliance with the Town's Investment Policy, as of September 30, 2020, 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 AAAm, or equivalent, by at least one nationally recognized rating service. As of September 30, 2020, 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, 2020, the market values of pledged securities and FDIC exceeded bank balances. 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. 56 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 TexPool TexPool was established as a trust company with the Treasurer of the State of Texas as trustee, segregated from all other trustees, investments, and activities of the trust company. The State Comptroller of Public Accounts exercises oversight responsibility over TexPool. Oversight includes the ability to significantly influence operations, designation of management, and accountability for fiscal matters. Additionally, the State Comptroller has established an advisory board composed of both participants in TexPool and other persons who do not have a business relationship with TexPool. The advisory board members review the investment policy and management fee structure. Finally, Standard & Poor's rate TexPool AAAm. As a requirement to maintain the rating, weekly portfolio information must be submitted to Standard & Poor's, as well as to the office of the Comptroller of Public Accounts for review. At September 30, 2020, 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, Texas CLASS has provided Texas public entities a safe and competitive investment alternative. Texas CLASS invests only in securities allowed by the Texas Public Funds Investment Act. The pool is governed by a board of trustees, elected annually by its participants. Texas CLASS is rated 'AAAm' by Standard and Poor's Ratings Services. The 'AAAm' principal stability fund rating is the highest assigned to principal stability government investment pools and is a direct reflection of Texas CLASS's outstanding credit quality and management. At September 30, 2020, the fair value of the position in Texas CLASS approximates fair value of the shares. There were no limitations or restrictions on withdrawals. 57 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 B. Receivables The following comprise receivable balances of the primary government at year end: Debt General Service PID No. 1 Property taxes $ 62,671 $ 19,181 $ - $ Sales tax 209,656 - Franchise taxes 45,724 - - Hotel occupancy - - - Special assessments - - 23,985,000 Due from other governments 31,738 - - Municipal court 62,337 - - EMS 153,570 - - Storm drainage - - - Park services 3,987 - - Other 127,640 - - Allowance (57,921) - - Total $ 639,402 $ 19,181 $ 23,985,000 $ Nonmajor Storm Drainage Governmental Utility $ $ 52,414 - 262,070 - - 45,724 20,471 - 20,471 - - 23,985,000 - - 31,738 - - 62,337 - - 153,570 - 40,753 40,753 - 3,987 127,640 - - (57,921) 72,885 $ 40,753 $ 24,757,221 The following comprise receivable balances of the component units at year end: Sales taxes 4B Economic Corporation $ 104,828 $ Total $ 104,828 $ Crime Control and Prevention Total 51,772 $ 156,600 51,772 $ 156,600 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 C. Capital Assets A summary of changes in governmental activities capital assets for the year end was as follows: Beginning Retirements/ Ending Balances Additions Reclassifications Balances Capital assets, not being depreciated: Land $ 10,463,669 $ - $ - $ 10,463,669 Construction in progress 2,826,762 1,599,123 (4,410,878) 15,007 Total capital assets not being depreciated 13,290,431 1,599,123 (4,410,878) 10,478,676 Capital assets, being depreciated: Buildings 11,877,299 - (1,221,980) 10,655,319 Improvements other than buildings 60,194,248 311,852 4,378,169 64,884,269 Machinery and equipment 2,988,314 52,652 (482,633) 2,558,333 Vehicles 1,613,702 84,721 (191,728) 1,506,695 Water system 5,362,005 - - 5,362,005 Infrastructure 14,332,062 - - 14,332,062 Total capital assets being depreciated 96,367,630 449,225 2,481,828 99,298,683 Less accumulated depreciation Buildings 1,650,244 400,192 (631,267) 1,419,169 Improvements other than buildings 26,423,223 2,073,162 (26,587) 28,469,798 Machinery and equipment 1,813,329 243,346 (180,780) 1,875,895 Vehicles 1,081,543 130,914 (176,121) 1,036,336 Water system 1,454,206 219,229 - 1,673,435 Infrastructure 5,920,874 337,494 - 6,258,368 Total accumulated depreciation 38,343,419 3,404,337 (1,014,755) 40,733,001 Net capital assets being depreciated _ Total capital assets $ 58,024,211 (2,955,112) _ 71,314,642 $ (1,355,989) $ 3,496,583 58,565,682 (914,295) $ 69,044,358 Depreciation expense was charged to governmental functions as follows: General government $ Emergency medical services Information systems Police Fire Parks and recreation Streets (Infrastructure) _ Total Governmental Activities Depreciation Expense $ 739,640 48,849 47,719 114,925 11,329 776,946 1,664,929 3,404,337 M1 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 A summary of changes in business -type activities capital assets for the year end was as follows: Beginning Decreases/ Ending Balances Increases Reclassifications Balances Capital assets, being depreciated: Machinery and equipment $ 24,112 $ - $ - $ 24,112 Improvements - 33,365 - 33,365 Infrastructure 2,039,766 - - 2,039,766 Total capital assets being depreciated 2,063,878 33,365 - 2,097,243 Less accumulated depreciation Machinery and equipment 11,380 2,387 - 13,767 Improvements - 834 - 834 Infrastructure 227,562 51,083 - 278,645 Total accumulated depreciation 238,942 54,304 - 293,246 Net capital assets being depreciated 1,824,936 (20,939) - 1,803,997 Total capital assets $ 1,824,936 $ (20,939) $ - $ 1,803,997 Depreciation expense was charged to business -type activities as follows: Trophy Club Park $ 3,221 Storm Drainage Utility 51,083 Total Business -Type Activities Depreciation Expense $ 54,304 MITI] Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 A summary of changes in discretely presented component unit activities capital assets for the year end was as follows: Beginning Decreases/ Ending Balances Increases Reclassifications Balances Capital assets, not being depreciated: Land $ 2,538,765 $ - $ - $ 2,538,765 Total capital assets not being depreciated 2,538,765 - - 2,538,765 Capital assets, being depreciated: Infrastructure 367,960 - - 367,960 Total capital assets being depreciated 367,960 - - 367,960 Less accumulated depreciation Infrastructure 8,177 24,531 - 32,708 Total accumulated depreciation 8,177 24,531 - 32,708 Net capital assets being depreciated 359,783 (24,531) - 335,252 Total capital assets $ 2,898,548 $ (24,531) $ - $ 2,874,017 D. Other Long-term Liabilities The following summarizes the changes in other long-term liabilities of the primary government during the year. Amounts Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental Activities: Compensated Absences $ 305,285 $ 297,365 $ (256,661) $ 345,989 $ 311,390 Total Governmental Activities $ 305,285 $ 297,365 $ (256,661) $ 345,989 $ 311,390 The general fund has typically been used to liquidate the liability for compensated absences for governmental activities. 61 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 E. 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, 2020. Amounts Beginning Ending Due Within Balance Additions Retired Balance One Year Governmental Activities: Bonds, notes and other payables: General Obligation Bonds $ 9,805,000 $ 3,550,000 $ (4,350,000) $ Certificates of Obligation 10,637,000 - (848,000) Special Assessment Bonds 25,260,000 - (1,275,000) Less deferred amounts: For premiums 4,160,382 - (287,455) _ Total Bonds Payable 49,862,382 3,550,000 (6,760,455) _ Capital lease 88,205 - (88,205) Total Governmental Activities $ 49,950,587 $ 3,550,000 $ _ (6,848,660) $ Business -Type Activities: Certificates of Obligation Less deferred amounts: For premiums Total Business -Type Activities Component Unit Activities: Long-term liabilities due in more than one year $ $ 825,000 $ - $ (155,000) $ uann rn Alin 9,005,000 $ 1,505,000 9,789,000 563,000 23,985,000 1,340,000 3,872,927 - 46,651,927 3,408,000 46,651,927 $ 3,408,000 43,243,927 670,000 $ 160,000 1) rl),) _ lvvlvvv Long-term liabilities due in more than one year $ 522,522 Certificates of Obligation $ 2,280,000 $ - $ (105,000) $ 2,175,000 $ 110,000 Less deferred amounts: For discounts (21,209) - 1,333 (19,876) - Total Component Unit Activities $ 2,258,791 $ - $ (103,667) $ 2,155,124 $ 110,000 Long-term liabilities due in more than one year $ 2,045,124 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 62 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 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, 2020, the total net carrying value of the capital lease assets was $240,465. At year end, long-term debt of governmental activities was comprised of the following debt issues: Governmental Activities: Year Average Interest of Final Annual Original Balance Description Rate Issue Maturity Payment Amount 9/30/2020 General Obligation Bonds: Refunding 2.18 % 2015 2025 203,000 2,030,000 1,170,000 Improvements 2.00-3.00 % 2016 2036 262,250 5,245,000 4,285,000 Refunding 1.16 % 2020 2030 355,000 3,550,000 3,550,000 $ 9,005,000 Certificates of Obligations: Combination Tax and Revenue -Series 2004 3.50 - 4.75 % 2004 2024 $ 32,500 $ 650,000 $ 134,000 Certificates of Obligation Series 2013 2.50 - 3.25 % 2013 2028 86,667 1,300,000 835,000 Certificates of Obligation Series 2014 2.00 - 3.75 % 2014 2034 125,000 2,500,000 1,900,000 Certificates of Obligation Series 2016 2.00-4.00 % 2016 2036 210,500 4,210,000 3,585,000 Certificates of Obligation Series 2017 2.50-3.00 % 2017 2037 222,250 4,445,000 3,335,000 $ 9,789,000 Special Assessments: Special Assessment Revenue Refunding -Series 2015 2.00-4.00 % 2015 2033 $ 1,453,054 $ 26,154,979 23,985,000 $ 23,985,000 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. 63 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 Business -tyke Activities: Year Average Interest of Final Annual Original Balance Description Rate Issue Maturity Payment Amount 9/30/2020 Certificates of Obligation Series 2013 2.50 - 3.00 % 2013 2024 $ 154,545 $ 1,700,000 $ 670,000 $ 670,000 Component -Unit Activities: Year Average Interest of Final Annual Original Balance Description Rate Issue Maturity Payment Amount 9/30/2020 Certificates of Obligation Series 2015 1.00 - 4.75 % 2015 2035 $ 134,500 $ 2,690,000 $ 2,175,000 $ 2,175,000 64 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 The annual requirements to amortize long-term debt outstanding of governmental activities as of September 30, 2020, are as follows: Governmental Activities Year Ending General Obligation Bonds September 30, Principal Interest Total Requirements 2021 $ 1,505,000 $ 175,760 $ 1,680,760 2022 905,000 153,611 1,058,611 2023 705,000 136,627 841,627 2024 725,000 121,820 846,820 2025 740,000 106,546 846,546 2026-2030 2,625,000 371,858 2,996,858 2031-2035 1,480,000 163,800 1,643,800 2036-2037 320,000 8,800 328,800 Total $ 9,005,000 $ 1,238,822 $ 10,243,822 Year Ending Certificates of Obligation Total September 30, Principal Interest Requirements 2021 $ 563,000 $ 288,397 $ 851,397 2022 588,000 269,358 857,358 2023 608,000 251,275 859,275 2024 620,000 232,559 852,559 2025 605,000 213,244 818,244 2026-2030 3,100,000 800,350 3,900,350 2031-2035 2,960,000 376,000 3,336,000 2036-2037 745,000 29,550 774,550 Total $ 9,789,000 $ 2,460,733 $ 12,249,733 Year Ending Special Assessment Bonds Total September 30, Principal Interest Requirements 2021 $ 1,340,000 $ 880,073 $ 2,220,073 2022 1,400,000 849,923 2,249,923 2023 1,469,000 814,923 2,283,923 2024 1,549,000 770,853 2,319,853 2025 1,627,000 724,383 2,351,383 2026-2030 9,541,000 2,734,956 12,275,956 2031-2035 7,059,000 720,850 7,779,850 Total $ 23,985,000 $ 7,495,961 $ 31,480,961 65 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 The annual requirements to amortize long-term debt outstanding of business -type activities as of September 30, 2020, are as follows: Business -Type Activities Year Ending September 30, 2021 2022 2023 2024 Total Certificates of Obligation Principal Interest $ 160,000 $ 16,462 $ 165,000 12,194 170,000 7,588 175,000 2,625 Total Reauirements 1 / b,4bZ 177,194 177,588 177,625 $ 670,000 $ 38,869 $ 708,869 The annual requirements to amortize long-term debt outstanding of component units as of September 30, 2020, are as follows: Component -Unit Activities Year Ending September 30, 2021 2022 2023 2024 2025 2026-2030 2031-2035 Total F. Advanced Refunding Certificates of Obligation Total Principal Interest Requirements $ 110,000 $ 93,668 $ 203,668 110,000 90,258 200,258 115,000 86,518 201,518 120,000 82,263 202,263 125,000 77,463 202,463 710,000 303,475 1,013,475 885,000 130,150 1,015,150 $ 2,175,000 $ 863,793 $ 3,038,793 On September 15, 2020, the Town issued $3,550,000 in general obligation refunding bonds with an interest rate of 1.16%. The proceeds were used to advance refund $3,070,000 of outstanding 2010 general obligation bonds which had an interest rate of 3% to 4%, and $410,000 of outstanding 2010 general obligation refunding bonds with an interest rate of 2% to 4%. The net proceeds of $3,485,838, after issuance costs, were deposited into an irrevocable trust with an escrow agent to provide funds for the future debt service payment on the refunded bonds. As a result, the obligations are considered defeased and the liability for those bonds have been removed from the statement of net position. The reacquisition price exceeded the net carrying amount of the old debt by $5,838. This amount was expensed in full during the current year due to it being a relatively small balance. Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 This advance refunding reduced its total debt service payments by $506,186 and resulted in an economic gain (difference between the present values of the debt service payments on the old and new debt) of $422,353. G. 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, 2020 was $2,740,306 for government -type activity reflected in the government -wide statements. Current year amortization expense totaled $206,009. H. Interfund Transactions Transfers between funds during the year are as follows: Transfer In: Transfer Out: General Debt Service Total Court Security Fund 1,500 - 1,500 Trophy Club Park 20,000 - 20,000 Storm Drainage Utility Fund 40,000 202,933 242,933 Total $ 61,500 $ 202,933 $ 264,433 Transfers were primarily used to support debt service, capital expenditures, and to transfer funds to the general fund for administrative costs. 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. 67 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 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. 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. Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 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. Plan provisions for the Town were as follows: Employee deposit rate Matching ratio (town to employee) Years required for vesting Service retirement eligibility (expressed as age / years of service) Updated service credit Annuity increase (to retirees) Plan Year 2019 7% 2to1 5 60/5, 0/20 100% Repeating Transfers 30% of CPI repeating The Town also participates in Social Security. Plan Year 2018 7% 2to1 5 60/5, 0/20 100% Repeating Transfers 30% of CPI repeating .• Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 Employees covered by benefit terms At the December 31, 2019 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 40 Inactive employees entitled to but not yet receiving benefits 109 Active employees 77 Total 226 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. 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 12.95% and 13.09% in calendar years 2019 and 2020, respectively. The Town's contributions to TMRS for the year ended September 30, 2020, were $719,013 and were equal to the required contributions. Net Pension Liability The Town's Net Pension Liability (NPL) was measured as of December 31, 2019, and the Total Pension Liability (TPL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. 70 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 The Total Pension Liability in the December 31, 2019 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 members 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. The actuarial assumptions were developed primarily from the actuarial investigation of the experience of TMRS over the four year period from December 31, 2010 to December 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. The long-term expected rate of return on pension plan investments was determined using a building-block method 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 mean (aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive). 71 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 The target allocation and best estimates of real rates of return for each major asset class in fiscal year 2020 are summarized in the following table: Asset Class Target Allocation Long -Term Expected Real Rate of Return (Arithmetic) Global Equity 30.0% 5.30% Core Fixed Income 10.0% 1.25% Non -Core Fixed Income 20.0% 4.14% Real Return 10.0% 3.85% Real Estate 10.0% 4.00% Absolute Return 10.0% 3.48% Private Equity 10.0% 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. r`a Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 Changes in Net Pension Liability: Balance at 12/31/18 Changes for the year: Service Cost Interest Difference between expected and actual experience Changes of assumptions Contributions - employer Contributions - employee Net investment income Benefit payments, including refunds of emp. contributions Administrative expense Other changes Net changes Balance at 12/31/19 Total Pension Liability (a) $ 19,854,961 980,663 1,354,175 (3,497) (802) (566,895) 1,763,644 Plan Fiduciary Net Position (b) $ 17,072,317 710,975 384,574 2,642,216 (566,895) (14,914) (448) 3,155,508 Net Pension Liability (a) - (b) $ 2,782,644 980,663 1,354,175 (3,497) (802) (710,975) (384,574) (2,642,216) 14,914 448 (1,391,864) $ 21,618,605 $ 20,227,825 $ L390,780 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 Current Single Rate 1% Increase 5.75% Assumption 6.75% 7.75% $ 4,820,954 $ 1,390,780 $ (1,374,467) 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. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: For the year ended September 30, 2020, the Town recognized a pension expense of $615,030. This amount is included as part of expenses within the functional program activities. 73 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 At September 30, 2020, the Town reported deferred outflows and inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Resources (Inflows) of Resources Primary Government: Difference between projected and actual investment earnings $ - $ 609,044 Changes in actuarial assumptions - 550 Differences between expected and actual economic experience - 115,038 Contributions subsequent to the measurement date 539,353 - Total $ 539,353 $ 724,632 Deferred outflows of resources related to pensions resulting from contributions subsequent to the measurement date of $539,353 will be recognized as a reduction of the net pension liability for the year ending September 30, 2021. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year ended December 31: 2020 $ (261,395) 2021 (202,532) 2022 37,262 2023 (297,967) 2024 - Thereafter - $ (724,632) E. Postemployment Benefits Other Than Pensions The Town also participates in a defined benefit group -term life insurance plan operated by the Texas Municipal Retirement System (TMRS) known as the Supplemental Death Benefits Fund (SDBF). This is a voluntary program in which participating member cities may elect, by ordinance, to provide group -term life insurance coverage for their active members, including or not including retirees. 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. 74 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 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 SDBF 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, paragraph 4b, (i.e., no assets are accumulated for OPEB). As such, the SDBF is considered to be a single -employer unfunded OPEB plan (and not a cost sharing plan) with benefit payments treated as being equal to the employer's yearly contributions for retirees. The Town offers supplemental death to: Plan Year 2019 Plan Year 2018 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, 2019 valuation and measurement date, the following employees were covered by the benefit terms: Inactive employees or beneficiaries currently receiving benefits 27 Inactive employees entitled to but not yet receiving benefits 29 Active employees 77 Total 133 The Town's contributions to the TMRS SDBF for the years ended 2020, 2019 and 2018 were $1,105, $1,128 and $982, respectively, which equaled the required contributions each year. 75 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 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 2018 0.02% 0.02% 100.0% 2019 0.02% 0.02% 100.0% 2020 0.02% 0.02% 100.0% Total OPEB Liability The Town's Postemployment Benefits Other Than Pensions Liability (OPEB) was measured as of December 31, 2019, and the Total OPEB Liability was determined by an actuarial valuation as of that date. Actuarial assumptions: The Total OPEB Liability in the December 31, 2019 actuarial valuation was determined using the following actuarial assumptions: Inflation Overall payroll growth Discount rate Retirees' share of benefit -related costs Administrative expenses 2.5% per year 3.5% to 11.5%, including inflation per year 2.75% $0 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 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 members 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. 76 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 Discount Rate: The discount rate used to measure the Total OPEB Liability was 2.75%. The discount rate was based on the Fidelity Index's "20-Year Municipal GO AA Index" rate as of December 31, 2019. 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 2.75%, 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 (1.75%) or 1-percentage- point higher (3.75%) than the current rate: 1% Decrease Current Single Rate 1% Increase 1.75% Assumption 2.75% $ 313,827 $ 251,655 Changes in the Total OPEB Liability: 3.75% $ 205,021 Total OPEB Liability Balance at 12/31/18 $ 188,329 Changes for the year: Service Cost 15,383 Interest 7,252 Difference between expected and actual experience (4,443) Changes of assumptions 46,233 Benefit payments (1,099) Net changes 63,326 Balance at 12/31/19 $ 251,655 Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended September 30, 2020, the Town recognized OPEB expense of $30,422. WAI Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 At September 30, 2020, the Town reported deferred outflows of resources and deferred inflows of resources related to the OPEB liability from the following sources: Differences between expected and actual economic experience Changes in assumptions Contributions subsequent to measurement date Total Deferred Outflows Deferred Inflows of Resources of Resources $ 35,374 - - 4,195 824 - $ 36,198 $ 4,195 The Town reported $824 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, 2021. Other amounts reported as deferred outflows of resources related to pensions will be recognized in pension expense as follows: Year ended December 31: 2020 2021 2022 2023 2024 Thereafter F. Other Post -Employment Benefits Plan Description $ 7,787 7,787 6,869 5,640 3,096 $ 31,179 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. The retiree pays 195% of the active participant contribution rate for the coverage selected. 9-1 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 As of September 30, 2020, membership consisted of: Retirees or beneficiaries currently receiving benefits - Active employees 67 Total 67 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: High Plan Standard Plan HSA Plan 05X8589 05X8569 05X8617 Single Coverage $ 488 $ 440 $ 330 Single + Spouse $ 1,302 $ 1,174 $ 881 Single + Children $ 923 $ 832 $ 625 Single + Family $ 1,641 $ 1,479 $ 1,111 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 Towri s annual OPEB cost is calculated based on actuarially assumptions determined in accordance with the parameters of GASB 75. 79 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 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 Interest Cost 2,624 Difference between expected and actual exp (1,194) Changes in assumptions (6,481) Annual OPEB cost expense 338 Contributions made - Change in net OPEB liability 338 Net OPEB Liability -beginning of year 59,249 Net OPEB Liability -end of year $ 59,587 The Town's annual OPEB expense, the percentage of annual OPEB expense contributed to the plan, and the net OPEB liability for 2020 and the preceding year are as follows: Percentage of Fiscal Annual OPEB Annual OPEB Net OPEB Liability Year Expense Cost Contributed Beginning Ending 2018 $ 7,198 0.00% $ 44,561 $ 51,759 2019 $ 7,490 0.00% $ 51,759 $ 59,249 2020 $ 338 0.00% $ 59,249 $ 59,587 Funded Status and Funding Progress As of September 30, 2019, the actuarial accrued liability for benefits was $59,587, all of which was unfunded. The actuarial accrued liability for benefits was determined based on the September 30, 2020 valuation, the most recent actuarial valuation date available. The covered payroll (annual payroll of active employees covered by the plan) for fiscal year 2020 was $5,449,088, and the ratio of the unfunded actuarial accrued liability to the covered payroll was 1.09%. 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. 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. Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 Actuarial Methods and Assumptions: The Net OPEB Liability in the September 30, 2020 actuarial valuation was determined using the following actuarial assumptions: Inflation 3.0% per year Health care cost trend Level 5.00% Discount rate 2.25% (-0.25% real rate of return plus 2.50% inflation) Salary scale 3.50% Mortality RPH-2014 Total Table with Projection MP-2019 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%. 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 both the trend and discount rate of 4.5% and 2.25%, respectively, 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 or 1- percentage-point higher than the current rate: snarl R a l-o 1% Decrease Current Single Rate 1% Increase 3.50% $ 50,799 Discount Rate 1% Decrease 1.25% $ 53,067 Assumption 4.50% $ 59,587 Current Single Rate Assumption 2.25% $ 59,587 5.50% $ 70,147 1% Increase 3.25% $ 66,852 911 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At September 30, 2020, the Town reported deferred outflows of resources and deferred inflows of resources related to the OPEB liability from the following sources: Differences between expected and actual economic experience Changes in assumptions Total Deferred Inflows of Resources 1,042 5,656 $ 6,698 The Town reported no deferred outflows of resources related to OPEB resulting from contributions subsequent to the measurement date that will be recognized as a reduction of the net OPEB liability for the year ending September 30, 2021. Other amounts reported as deferred outflows of resources related to OPEB will be recognized in OPEB expense as follows: Year ended December 31: 2021 $ (977) 2022 (977) 2023 (977) 2024 (977) 2025 (977) Thereafter (1,813) $ (6,698) Aggregate Amount of OPEB Expense and Deferred Outflows and Inflows of Resources The following summaries the aggregate amount of OPEB expense and deferred outflows and inflows of resources for fiscal year ending September 30, 2020. SDBF Healthcare Total OPEB Liability $ (251,655) $ (59,587) $ (311,242) OPEB contributions 824 - 824 OPEB experience 35,374 (1,042) 34,332 OPEB change in assumptions (4,195) (5,656) (9,851) OPEB expense 29,354 7,036 36,390 Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 G. DEFERRED COMPENSATION PLAN The Town has established a deferred compensation plan (the 457 plan) in accordance with Internal Revenue Code, Section 457. The 457 plan, available to all employees, permits them to defer a portion of their salaries until future years. The benefits of the plan are not available to employees until termination, retirement, or unforeseeable emergency. Benefits are available to employee's beneficiaries in case of death. All amounts of compensation deferred under the 457 plan, all property rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the Town (without being restricted to the provisions of benefits under the plan) subject only to the claims of the Town's general creditors. Participants' rights under the plan are equal to those of the general creditors of the Town in an amount equal to the fair market value of the deferred account for each participant. It is the opinion of the Town that the Town has no liability for investment losses under the 457 plan but does have the duty of due care that would be required of an ordinary prudent investor. The Town believes that it is unlikely that it will use the 457 plan assets to satisfy the claims of general creditors in the future. The Town's deferred compensation plan is administered by a private corporation under contract with the Town. Participant contributions totaled $23,077 for the year ended September 30, 2020. H. 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. Town of Trophy Club, Texas NOTES TO FINANCIAL STATEMENTS, Continued September 30, 2020 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. I. 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, 2020 the Town of Trophy Club, Texas had no tax incentives. J. SUBSEQUENT EVENTS There were no material subsequent events through March 23, 2021, the date the financial statements were issued. REQUIRED SUPPLEMENTARY INFORMATION Town of Trophy Club, Texas SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (Page 1 of 2) GENERAL FUND For the Year Ended September 30, 2020 Revenues Property tax Sales tax Franchise and local taxes License and permits Intergovernmental Charges for services Fines and forfeitures Investment income Other revenue Total Revenues Expenditures Current: Manager's office Human resources Finance Municipal court Police Fire Emergency medical services Facilities management Streets Community development Parks and recreation Legal Information services Debt service: Principal Interest Capital outlay Total Expenditures Revenues Over (Under) Expenditures Variance with Final Budget Original & Positive Final Budget Actual (Negative) $ 6,894,957 $ 7,031,351 $ 136,394 1,015,684 11158,083 142,399 772,648 850,543 77,895 304,700 479,513 174,813 1,463,711 21005,341 541,630 305,316 292,490 (12,826) 300,360 128,166 (172,194) 132,000 75,137 (56,863) 122,104 226,751 104,647 11,311,480 12,247,375 935,895 698,073 682,231 15,842 489,378 428,851 60,527 580,570 601,249 (20,679) 73,942 77,456 (3,514) 2,511,491 2,500,524 10,967 1,336,445 1,256,964 79,481 1,282,592 1,219,728 62,864 343,175 336,161 7,014 224,673 192,608 32,065 618,612 491,941 126,671 2,570,029 2,041,863 528,166 126,350 102,606 23,744 724,161 621,055 103,106 88,206 88,206 - 3,246 3,246 - 29,000 - 29,000 11, 699, 943 10, 644, 689 1,055,254 (388,463) 1,602,686 1,991,149 :. Town of Trophy Club, Texas SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (Page 2 of 2) GENERAL FUND For the Year Ended September 30, 2020 Other Financing Sources (Uses Transfers in Sale of general capital assets Insurance recoveries Total Other Financing Sources Net Change in Fund Balance Beginning fund balance Ending Fund Balance Original & Final Budget 61,500 61,500 $ (326,963) Actual 61,500 32,213 27,769 121,482 1,724,168 5,823,255 $ 7,547,423 Variance with Final Budget Positive (Negative) 32,213 27,769 59,982 $ 2,051,131 Notes to Required Supplementary Information 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). Town of Trophy Club, Texas SCHEDULE OF CHANGES IN NET PENSION LIABILITYAND RELATED RATIOS Years Ended: Total pension liability Service cost Interest Changes in benefit terms Differences between expected and actual experience Changes of assumptions Benefit payments, including refunds of participant contributions Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net position Contributions - employer Contributions - members Net investment income Benefit payments, including refunds of participant contributions Administrative expenses Other Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) Fund's net pension liability - ending (a) - (b) Plan fiduciary net position as a percentage of 12/31/2019 IV31/2018 IV31/2017 $ 980,663 $ 863,553 $ 789,530 1,354,175 1,263,163 1,173, 728 (3,497) (258,925) (62,418) (802) - - (566,895) (589,161) (636,604) 1,763,644 1,278,630 1,264,236 19,854,961 18,576,331 17,312,095 21,618,605 19,854,961 18,576,331 $ 710,975 $ 633,832 $ 606,585 384,574 347,155 323,389 2,642,216 (515,889) 2,061,434 (566,895) (589,161) (636,604) (14,914) (9,961) (10,676) (448) (520) (541) 3,155,508 (134,544) 2,343,587 17,072,317 17,206,861 14,863,274 $ 20,227,825 $ 17,072,317 $ 17,206,861 $ 1,390,780 $ 2,782,644 $ 1,369,470 the total pension liability 93.57% 85.99% 92.63% Covered payroll $ 5,493,911 $ 4,954,406 $ 4,619,838 Fund's net pension liability as a percentage of covered payroll 25.31% 56.17% 29.64% Notes to schedule: 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. 3-11 12/31/2016 12/31/2015 12/31/2014 i $ 795,448 804,453 $ 809,057 1,113,555 1,053,745 970,682 - - (1,544,038) (471,044) (237,279) (49,303) - 368,895 - (450,496) (632,921) (450,100) 987,463 1,356,893 (263,702) 16,324,632 14,967,739 15,231,441 17,312,095 16,324,632 14,967,739 $ 593,840 658,543 $ 660,364 329,281 340,458 316,613 912,155 19,357 681,774 (450,496) (632,921) (450,100) (10,296) (11,788) (7,117) (555) (582) (585) 1,373,929 373,067 1,200,949 13,489,345 13,116, 278 11, 915, 329 $ 14,863,274 13,489,345 $ 13,116,278 $ 2,448,821 2,835,287 $ 1,851,461 85.85% 82.63% 87.63% $ 4,704,011 $ 4,863,685 $ 4,523,041 52.06% 58.30% 40.93% Town of Trophy Club, Texas SCHEDULE OF EMPLOYER CONTRIBUTIONS TO PENSION PLAN Years Ended: Actuarially determined employer contributions Contributions in relation to the actuarially determined contribution Contribution deficiency (excess) Annual covered payroll Employer contributions as a percentage of covered payroll 9/30/2020 9/30/2019 9/30/2018 $ 728,124 $ 736,208 $ 638,736 $ 728,124 $ 736,208 $ 638,736 $ 5,524,768 $ 5,640,011 $ 4,911,902 13.18% 13.05% 13.00% 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 Valuation Date: Notes Actuarially determined contribution rates are calculated as of December 31 and become effective in January 13 months later. Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Payroll, Closed Remaining Amortization Period 26 years Asset Valuation Method 10 Year smoothed market; 15% soft corridor Inflation 2.5% Salary Increases 3.50% to 11.5%, including inflation Investment Rate of Return 6.75% Retirement Age Experience -based table of rates that are specific to the City's plan of benefits. Last updated for the 2019 valuation pursuant to an experience study of the period 2014 - 2018 Mortality Post -retirement: 2019 Municipal Retirees of Texas Mortality Tables. The reates are projected on a fully generational basis with scale UMP. Pre -retirement: PUB(10) mortality tables, with the Public Safety table used for males and the General Employee table used for females. The rates are projeted on a fully generational basis with scale UMP. Other Information: Notes There were no benefit changes during the year. .o $ 598,176 $ 627,419 $ 642,631 $ 4,559,463 $ 4,822,763 $ 4,617,652 13.12% 13.01% 13.92% 91 i 11 TOWN OF TROPHY CLUB 92 Town of Trophy Club, Texas SCHEDULE OF CHANGES IN POSTEMPLOYMENT BENEFITS OTHER THAN PENSION (OPEB) LIABILITY AND RELATED RATIOS TEXAS MUNICIPAL RETIREMENT SYSTEM Years Ended: 12/31/2019 12/31/2018 12/31/2017 1 Total OPEB liability Service cost Interest Changes in benefit terms Differences between expected and actual experience Changes of assumptions Benefit payments, including refunds of participant contributions Net changes Total OPEB liability - beginning Total OPEB liability - ending Covered employee payroll Total OPEB Liability as a percentage of covered $ 15,383 $ 12,386 $ 10,164 7,252 6,400 6,033 (4,443) (887) - 46,233 (16,237) 17,400 (1,099) (991) (924) 63,326 671 32,673 188,329 18 7, 658 154,985 $ 251,655 $ 188,329 $ 187,658 2 $ 5,493,911 $ 4,954,406 $ 4,619,838 4.58% 3.80% 4.06% Notes to schedule: 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. 2 No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB statement No. 75 to pay related benefits. 93 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: 9/30/2020 9/30/2019 9/30/2018 1 Total OPEB liability Service cost $ 5,389 $ 5,389 $ 5,179 Interest 2,624 2,101 2,019 Changes in benefit terms - - - Differences between expected and actual experience (1,194.0) - - Changes of assumptions (6,481) - - Benefit payments, including refunds of participant contributions - - - Net changes 338 7,490 7,198 Total OPEB liability - beginning 59,249 51,759 44,561 Total OPEB liability - ending $ 59,587 $ 59,249 $ 51,759 2 Covered employee payroll $ 4,398,838 $ 3,662,902 $ 4,911,902 Total OPEB Liability as a percentage of covered 1.35% 1.62% 1.05% Notes to schedule: i 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 2 No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB statement No. 75 to pay related benefits. 3I! Town of Trophy Club, Texas SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL PID No. 1 For the Year Ended September 30, 2020 Variance with Final Budget Original & Positive Final Budget Actual (Negative) Revenues Special assessments $ 2,204,998 $ 2,187,165 $ (17,833) Other revenue 47,310 42,568 (4,742) Total Revenues 2,252,308 2,229,733 (22,575) Expenditures Current: PID activities 47,310 50,152 (2,842) Debt service: Principal 1,340,000 11275,000 65,000 Interest and fiscal charges 864,998 905,573 (40,575) Total Expenditures 2,252,308 2,230,725 21,583 Revenues Over (Under) Expenditures - (992) (992) Net Change in Fund Balance $ - (992) $ (992) Beginning fund balance 3,972,188 Ending Fund Balance $ 3,971,196 Notes to Required Supplementary Information 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). 95 i 11 TOWN OF TROPHY CLUB OTHER SUPPLEMENTARY INFORMATION COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES 97 Town of Trophy Club, Texas COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2020 Hotel Street Maintenance Court Occupancy Tax Sales Tax Technology Assets Cash and cash equivalents $ 1,510,286 $ 143,346 $ 13,232 Taxes receivable, net 20,471 52,414 - Total Assets $ 1,530,757 $ 195,760 $ 13,232 Liabilities Accounts payable $ 114 $ 11,204 $ - Total Liabilities 114 11,204 - Fund Balances Restricted for: Tourism 1,530,643 - - Public safety - - - Street maintenance - 184,556 - Court - - 13,232 Parks - - - Committed for: Recreation programs - - - Total Fund Balances 1,530,643 184,556 13,232 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 1,530,757 $ 195,760 $ 13,232 See notes to the financial statements 98 Court Recreation Park Land Security Programs Dedication Grant Total $ 19,606 $ 5,062 $ 385,727 $ 9,886 $ 2,087,145 - - - - 72,885 $ 19,606 $ 5,062 $ 385,727 $ 9,886 $ 2,160,030 $ - $ - $ - $ - $ 11,318 - - - - 11,318 1,530,643 9,886 9,886 - - - - 184,556 19,606 - - - 32,838 - - 385,727 - 385,727 - 5,062 - - 5,062 19,606 5,062 385,727 9,886 2,148,712 $ 19,606 $ 5,062 $ 385,727 $ 9,886 $ 2,160,030 99 Town of Trophy Club, Texas COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Year Ended September 30, 2020 Hotel Street Maintenance Court Occupancy Tax Sales Tax Technology Revenues Sales taxes $ - $ 287,911 $ - Occupancy tax 387,759 - - Charges for services - - - Fines and fees - - 964 Investment income 6,856 - - Other revenue - - - Total Revenues 394,615 287,911 964 Expenditures Current: Court - - - Tourism 64,385 - - Recreation - - - Public works - 195,811 - Capital outlay: Parks 113,568 - - Total Expenditures 177,953 195,811 - Excess (Deficiency) of Revenues Over (Under) Expenditures 216,662 92,100 964 Other Financing Sources (Uses) Transfers (out) - - - Total Other Financing Sources (Uses) - - - Net Change in Fund Balances 216,662 92,100 964 Beginning fund balances 1,313,981 92,456 12,268 Ending Fund Balances $ 1,530,643 $ 184,556 $ 13,232 See notes to the financial statements 100 Court Recreation Park Land Security Programs Dedication Grant Total $ - $ - $ - $ - $ 287,911 - - - - 387,759 - 4,457 - - 4,457 3,747 - - - 4,711 - - 5,399 - 12,255 - - 159,864 - 159,864 3,747 4,457 165,263 - 856,957 409 - - - 409 - - - - 64,385 - 2,424 - - 2,424 - - - - 195,811 - - - - 113,568 409 2,424 - - 376,597 3,338 2,033 165,263 - 480,360 (1,500) - - - (1,500) (1,500) - - - (1,500) 1,838 2,033 165,263 - 478,860 17,768 3,029 220,464 9,886 1,669,852 $ 19,606 $ 5,062 $ 385,727 $ 9,886 $ 2,148,712 101 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, 2020 Variance with Final Budget Original & Court Positive Final Budget Technology (Negative) Revenues Fines and fees $ 2,800 $ 964 $ (1,836) Total Revenues 2,800 964 (1,836) Expenditures Municipal court 2,522 - 2,522 Total Expenditures 2,522 - 2,522 Revenues Over (Under) Expenditures 278 964 686 Net Change in Fund Balances $ 278 964 $ 686 Beginning fund balances 12,268 Ending Fund Balances $ 13,232 Notes to Supplementary Information 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). 102 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, 2020 Variance with Final Budget Original & Court Positive Final Budget Security (Negative) Revenues Fines and fees $ 2,200 $ 3,747 $ 1,547 Total Revenues 2,200 3,747 1,547 Expenditures Municipal court 1,500 409 1,091 Total Expenditures 1,500 409 1,091 Revenues Over Expenditures 700 3,338 2,638 Other Financing (Uses) Transfers (out) (1,500) (1,500) - Total Other Financing (Uses) (1,500) (1,500) - Net Change in Fund Balances $ (800) 1,838 $ 2,638 Beginning fund balances 17,768 Ending Fund Balances $ 19,606 Notes to Supplementary Information 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). 103 Town of Trophy Club, Texas SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL STREET MAINTENANCE For the Year Ended September 30, 2020 Variance with Final Budget Original & Street Positive Final Budget Maintenance (Negative) Revenues Taxes $ 243,112 $ 287,911 $ 44,799 Total Revenues 243,112 287,911 44,799 Expenditures Streets 222,111 195,811 26,300 Total Expenditures 222,111 195,811 26,300 Revenues Over (Under) Expenditures 21,001 92,100 71,099 Net Change in Fund Balances $ 21,001 92,100 $ 71,099 Beginning fund balances 92,456 Ending Fund Balances $ 184,556 Notes to Supplementary Information 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). 104 Town of Trophy Club, Texas SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL HOTEL OCCUPANCY TAX For the Year Ended September 30, 2020 Variance with Final Budget Original & Hotel Positive Final Budget Occupancy Tax (Negative) Revenues Taxes $ 550,000 $ 387,759 $ (162,241) Investment income 5,000 6,856 1,856 Miscellaneous 7,500 - (7,500) Total Revenues 562,500 394,615 (167,885) Expenditures General government 20,000 - 20,000 Tourism 141,925 64,385 77,540 Capital outlay 50,000 113,568 (63,568) Total Expenditures 211,925 177,953 33,972 Revenues Over Expenditures 350,575 216,662 (133,913) Net Change in Fund Balances $ 350,575 216,662 $ (133,913) Beginning fund balances 1,313,981 Ending Fund Balances $ 1,530,643 Notes to Supplementary Information 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). 105 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, 2020 Variance with Final Budget Original & Recreation Positive Final Budget Programs (Negative) Revenues Charges for services $ 6,000 $ 4,457 $ (1,543) Total Revenues 6,000 4,457 (1,543) Expenditures Recreation 6,000 2,424 3,576 Total Expenditures 6,000 2,424 3,576 Revenues Over Expenditures - 2,033 2,033 Net Change in Fund Balances $ - 2,033 $ 2,033 Beginning fund balances 3,029 Ending Fund Balances $ 5,062 Notes to Supplementary Information 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). 106 Town of Trophy Club, Texas SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DEBT SERVICE FUND For the Year Ended September 30, 2020 Variance with Final Budget Original & Debt Positive Final Budget Service (Negative) Revenues Taxes $ 2,261,454 $ 2,328,496 $ 67,042 Intergovernmental 252,836 51,281 (201,555) Investment income 20,000 9,664 (10,336) Total Revenues 2,534,290 2,389,441 (144,849) Expenditures Debt Service: Principal 1,978,000 1,718,000 260,000 Interest and fiscal charges 741,990 637,930 104,060 Bond issuance costs 64,162 67,636 (3,474) Total Expenditures 2,784,152 2,423,566 360,586 Revenues Over (Under) Expenditures (249,862) (34,125) 215,737 Other Financing Sources (Uses) Transfers in 202,933 202,933 - Refunding bonds issued 3,550,000 3/550,000 - Payment to refunding bond escrow agent (3,485,838) (3,485,838) - Total Other Financing Sources (Uses) 267,095 267,095 - Net Change in Fund Balances $ 17,233 232,970 $ 215,737 Beginning fund balances 473,670 Ending Fund Balances $ 706,640 Notes to Supplementary Information 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). 107 Town of Trophy Club, Texas SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CAPITAL PROJECTS FUND For the Year Ended September 30, 2020 Variance with Final Budget Original & Capital Positive Final Budget Projects (Negative) Revenues Investment income $ 50,000 $ 44,234 $ (5,766) Total Revenues 50,000 44,234 (5,766) Expenditures General government 8,000 6,212 1,788 Capital outlay 1,540,000 1,621,448 (81,448) Total Expenditures 1,548,000 1,627,660 (79,660) ' Revenues Over Expenditures (1,498,000) (1,583,426) (85,426) Net Change in Fund Balances $ (1,498,000) (1,583,426) $ (85,426) Beginning fund balances 3,568,072 Ending Fund Balances $ 1,984,646 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. 1: Town of Trophy Club, Texas SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL PARK LAND DEDICATION For the Year Ended September 30, 2020 Variance with Final Budget Original & Final Park Land Positive Budget Dedication (Negative) Revenues Investment income $ - $ 5,399 $ 5,399 Other revenue - 159,864 159,864 Total Revenues - 165,263 165,263 Expenditures Current: Capital outlay 162,000 - 162,000 Total Expenditures 162,000 - 162,000 Revenues Over (Under) Expenditures (162,000) 165,263 327,263 Net Change in Fund Balance $ (162,000) 165,263 $ 327,263 Beginning fund balance 220,464 Ending Fund Balance $ 385,727 Notes to Supplementary Information 1. Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP). 109 i 11 TOWN OF TROPHY CLUB 110 Town of Trophy Club, Texas COMBINING SCHEDULE OF NET POSITION DISCRETELY PRESENTED COMPONENT UNITS September 30, 2020 413 Tax Increment Crime Control Economic Reinvestment and Corporation Zone #1 Prevention Total Assets Cash and cash equivalents $ 260,878 $ 31,691 $ 176,921 $ 469,490 Receivables, net 104,828 - 51,772 156,600 Due from primary government - - - - Total Current Assets 365,706 31,691 228,693 626,090 Capital assets: Non -depreciable 2,538,765 - - 2,538,765 Net depreciable capital assets 335,252 - - 335,252 Total Noncurrent Assets 2,874,017 - - 2,874,017 Total Assets 3,239,723 31,691 228,693 3,500,107 Liabilities Accounts payable and accrued liabilities - - 5,882 5,882 Due to primary government - - - - Accrued interest payable 8,402 - - 8,402 Debt due within one year 110,000 - - 110,000 118,402 - 5,882 124,284 Noncurrent liabilities: Debt due in more than one year 2,045,124 - - 2,045,124 Advances from primary government - 386,503 - 386,503 2,045,124 386,503 - 2,431,627 Total Liabilities 2,163,526 386,503 5,882 2,555,911 Net Position Net investment in capital assets 718,893 - - 718,893 Restricted Public safety - - 222,811 222,811 Unrestricted 357,304 (354,812) - 2,492 Total Net Position $ 1,076,197 $ (354,812) $ 222,811 $ 944,196 See Notes to Financial Statements. Town of Trophy Club, Texas COMBINING SCHEDULE OF ACTIVITIES DISCRETELY PRESENTED COMPONENT UNITS For the Year Ended September 30, 2020 Program Revenues Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Component Units Governmental Activities 4B Economic Corporation $ Tax Increment Reivestment Zone #1 Crime Control and Prevention Total Governmental Activities Total Component Units $ See Notes to Financial Statements. 171,811 $ - $ - $ - 13,411 - - - 200,994 - 5,669 - 386,216 - 5,669 - 386,216 $ - $ 5,669 $ - General Revenues: Property taxes Sales taxes Other revenues Total General Revenues Change in Net Position Beginning Net Position Ending Net Position Blip) Net (Expense) Revenue and Changes in Net Position 4B Tax Increment Crime Control Economic Reinvestment and Corporation Zone #1 Prevention Total $ (171,811) $ - $ - $ (171,811) - (13,411) - (13,411) - - (195,325) (195,325) (171,811) (13,411) (195,325) (380,547) $ (171,811) $ (13,411) $ (195,325) $ (380,547) - 129,579 - 129,579 575,821 51,704 284,426 911,951 64,106 - 3,200 67,306 639,927 181,283 287,626 1,108,836 468,116 167,872 92,301 728,289 608,081 (522,684) 130,510 215,907 $ 1,076,197 $ (354,812) $ 222,811 $ 944,196 113 Town of Trophy Club, Texas BALANCE SHEET DISCRETELY PRESENTED COMPONENT UNITS September 30, 2020 4B Tax Increment Crime Control Economic Reinvestment and Corporation Zone #1 Prevention Total Assets Cash and cash equivalents $ 260,878 $ 31,691 $ 176,921 $ 469,490 Receivables, net 104,828 - 51,772 156,600 Due from primary government - - - - Total Current Assets 365,706 31,691 228,693 626,090 Liabilities Current Liabilities Accounts payable and accrued liabilities - - 5,882 5,882 Advances from primary government - 386,503 - 386,503 Total Liabilities - 386,503 5,882 392,385 Fund Balances Restricted for: Public safety - - 222,811 222,811 Unassigned 365,706 (354,812) - 10,894 Total Fund Balances 365,706 (354,812) 222,811 233,705 Total Liabilities and Fund Balances $ 365,706 $ 31,691 $ 228,693 $ 626,090 See Notes to Financial Statements. 114 Town of Trophy Club, Texas RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION DISCRETELY PRESENTED COMPONENT UNITS September 30, 2019 Fund Balances $ 233,705 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 335,252 Some liabilities, including bonds payable and deferred charges, are not reported as liabilities in the governmental funds. Accrued interest (8,402) Bond discount 19,876 Non -current liabilities due in one year (110,000) Non -current liabilities due in more than one year (2,065,000) Net Position of the Discretely Presented Component Units $ 944,196 115 Town of Trophy Club, Texas STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES DISCRETELY PRESENTED COMPONENT UNITS For the Year Ended September 30, 2020 4B Tax Increment Crime Control Economic Reinvestment and Revenues Corporation Zone #1 Prevention Total Sales taxes $ 575,821 $ 51,704 $ 284,426 $ 911,951 Property taxes - 129,579 - 129,579 Intergovernmental - - 5,669 5,669 Other revenues 64,106 - 3,200 67,306 Total Revenues 639,927 181,283 293,295 1,114,505 Expenditures Economic development 40,354 - - 40,354 Community development - 13,411 - 13,411 Public safety - - 200,994 200,994 Debt service Principal 105,000 - - 105,000 Interest and fiscal charges 96,555 - - 96,555 Total Expenditures 241,909 13,411 200,994 456,314 Excess of Revenues Over (Under) Expenditures 398,018 167,872 92,301 658,191 Net Change in Fund Balances 398,018 167,872 92,301 658,191 Beginning fund balances (32,312) (522,684) 130,510 (424,486) Ending Fund Balances $ 365,706 $ (354,812) $ 222,811 $ 233,705 See Notes to Financial Statements. 116 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 Amounts reported for governmental activities in the statement of activities are different because: Net changes in fund balances $ 658,191 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. Depreciation expense (24,531) 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 (9,038) 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 (1,333) Principal payments 105,000 Change in Net Position of the Discretely Presented Component Units $ 728,289 117 i 11 TOWN OF TROPHY CLUB 118 STATISTICAL 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. Contents Page Financial Trends 120 These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. Revenue Capacity 133 These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity 140 These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Demographic and Economic Information 145 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information 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. 119 Town of Trophy Club, Texas NET POSITION BY COMPONENT Last Ten Fiscal Years (Unaudited) (accrual basis of accounting) 2011 2012 2013 2014 Governmental activities Net investment in capital assets $ 47,668,302 $ 50,050,855 $ 54,425,735 $ 53,586,441 Restricted 57,471 1,191,411 315,480 564,472 Unrestricted 2,689,482 2,158,558 2,896,674 3,119,531 Total governmental activities net position $ 50,415,255 $ 53,400,824 $ 57,637,889 $ 57,270,444 Business -type activities Net investment in capital assets $ - $ - $ 52,848 $ 560,931 Unrestricted 121541 46,866 230,592 (4,845) Total business -type activities net position 12,541 $ 46,866 $ 283,440 $ 556,086 Primary government Net investment in capital assets $ 47,668,302 $ 50,050,855 $ 54,478,583 Restricted 57,471 1,191,411 315,480 Unrestricted 2,702,023 2,205,424 3,127,266 Total primary governmental net position $ 50,427,796 $ 53,447,690 $ 57,921,329 Source: Town audited financial records Notes: The Town implemented the GASB Statement No. 34 model of reporting fiscal year ending September 30, 2004. The Town did not have business -type activities prior to fiscal year 2011. 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 Statement No. 68 in fiscal year 2015. The amounts for all prior fiscal years have not been restated for the effects of this standard. 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 this standard. $ 54,147,372 564,472 �.114.6R6 120 2015 2016 2017 2018 2019 $ 27,620,857 $ 26,940,643 $ 27,125,337 $ 51,825,867 $ 52,718,444 4,035,428 4,433,649 4,676,837 5,478,991 6,112,682 2020 $ 51,061,357 6,821,486 $ 513,930 $ 680,146 $ 776,097 $ 877,048 $ 982,997 $ 1,121,475 163,047 171,755 350,752 633,294 741,325 706,200 $ 28,134,787 $ 27,620,789 $ 27,901,434 $ 52,702,915 $ 53,701,441 $ 52,182,832 4,035,428 4,433,649 4,676,837 5,478,991 6,112,682 6,821,486 121 Town of Trophy Club, Texas CHANGES IN NET POSITION Last Ten Fiscal Years (Unaudited) (accrual basis of accounting) Expenses Governmental activities: General government Public safety PID activities Parks and recreation Community development Streets and infrastructure Water and sewer Storm drainage Interest on long-term debt Total governmental activities expenses Business -type activities: Trophy Club Park Storm Drainage Total business -type activities expenses Total primary government expenses Program Revenues Governmental activities: Charges for services Community Development Water and sewer Other Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities: 2011 2012 2013 2014 $ 2,807,237 $ 1,984,137 $ 1,902,621 $ 2,113,664 2,275,778 2,392,798 2,898,737 3,125,577 1,844,573 1,564,660 2,037,590 2,555,844 345,804 485,614 599,872 620,209 1,372,501 1,829,799 2,234,140 1,764,396 617,001 92 261,106 311,677 - - 227,067 231,370 558,473 498,569 489,337 412,561 9,821,367 8,755,669 10,650,470 11,135,298 98,935 130,185 98,718 134,625 156,461 96,488 121,269 103,001 255,396 226,673 219,987 237,626 10,076,763 8,982,342 10,870,457 11,372,924 792,065 1,128,234 968,285 612,722 2,040 - 669,827 854,349 793,205 340,748 342,894 952,648 10,627,098 2,682,302 4,793,132 13,042,460 5,009,819 7,507,270 Charges for services 253,034 Operating grants and contributions - Capital grants and contributions - Total business -type activities program revenues 253,034 Total primary government program revenues $ 13,295,494 895,508 783,359 423,960 761,196 2,864,023 325,380 506,205 550,617 325,380 506,205 550,617 $ 5,335,199 $ 8,013,475 $ 3,414,640 122 2015 2016 2017 2018 2019 2020 $ 1,955,949 $ 2,728,642 $ 2,533,298 $ 3,398,500 $ 3,650,893 $ 3,561,521 2,306,609 3,540,703 4,607,380 4,429,744 5,109,461 5,139,151 2,736,000 2,122,901 48,520 2,850 26,875 50,152 2,253,982 2,652,384 2,761,053 2,644,329 2,871,283 2,593,588 436,090 640,404 738,659 695,637 717,215 563,312 1,716,531 1,878,119 1,728,809 1,671,692 2,371,290 2,052,018 319,054 319,054 - - - - 234,339 234,287 - - - - 469,923 496,019 2,365,059 2,771,762 2,663,286 1,639,671 12,428,477 14,612,513 14,782,778 15,614,514 17,410,303 15,599,413 123,445 109,325 116,477 93,677 122,186 229,670 205,331 174,499 120,295 129,722 131,370 93,912 328,776 283,824 236,772 223,399 253,556 323,582 12, 757,253 14,896,337 15,019,550 15,837, 913 17,663, 859 15,922, 995 702,578 605,558 - - - - 2,669,738 2,593,969 3,705,774 3,982,406 3,266,108 1,797,916 550,495 141,071 581,633 443,752 1,392,787 2,056,622 1,254,997 - - - 2,127,040 - 5,177,808 3,340,598 4,287,407 4,426,158 6,785,935 3,854,538 484,874 466,934 596,520 592,322 539,295 619,011 484,874 528,040 596,520 686,843 542,655 687,157 $ 5,662,682 $ 3,868,638 $ 4,883,927 $ 5,113,001 $ 7,328,590 $ 4,541,695 123 Town of Trophy Club, Texas CHANGES IN NET POSITION Last Ten Fiscal Years (Unaudited) (accrual basis of accounting) Net (Expenses) Revenue Governmental activities Business -type activities Total primary government net expenses General Revenues and Other Changes in Net Position Governmental activities: Taxes: Property taxes Sales and mixed beverage taxes Other taxes Investment income Miscellaneous revenues Special items Transfers Total governmental activities Business -type activities: Investment income Special items Transfers Total business -type activities Total primary government Change in Net Position Governmental activities Business -type activities Total primary government 2011 2012 2013 2014 $ 3,221,093 $ (3,745,850) $ (3,143,200) $ (8,271,275) M 2ti7\ QQ 7n7 1)" 11 Q 21 7 OQ1 y J,Gl0,/J1 y k01v1±1,i'±0) Lp kc101yv,70c) y ki,��o,co�� 4,480,999 4,897,615 5,334,140 5,955,398 631,561 754,105 781,054 965,969 648,400 706,065 828,338 1,020,554 15,162 7,983 7,193 4,973 333,497 301,269 379,896 185,922 75,819 64,382 49,644 28,607 6,185,438 6,731,419 7,380,265 8,161,423 78 - - 25 - - - 26,001 (75,819) (64,382) (49,644) (28,607) (75,741) (64,382) (49,644) (2,581) $ 6,109,697 $ 6,667,037 $ 7,330,621 $ 8,158,842 $ 9,406,531 $ 2,985,569 $ 4,237,065 $ (109,852) (78,103) 34,325 236,574 310,410 $ 9,328,428 $ 3,019,894 $ 4,473,639 $ 200,558 Source: Town audited financial records Notes: The Town implemented the GASB 34 model of reporting fiscal year ending September 30, 2004. The Town did not have business -type activities prior to fiscal year 2011. 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. 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. 124 2015 2016 2017 2018 2019 2020 P (T250_669) �, (11271-91.5) P (10_495.371) P (11.199356) P (10_624369) P (11.744-975) $ (7,094,571) $ (11,027,699) $ (10,135,623) $ (10,724,912) $ (10,335,269) $ (11,381,300) 7,447,069 7,714,564 8,269,141 8,412,231 8,974,426 9,347,776 1,104,298 1,217,693 1,306,243 1,150,073 1,271,864 1,445,994 1,027,407 1,255, 995 1,376,352 1,486, 952 1,581, 721 1,238,302 11,331 65,709 146,015 259,220 512,922 183,858 100,202 382,521 908,540 197,567 235,107 414,384 - - - - - (882,082) 35,350 70,206 86,887 87,209 86,937 262,933 9,725,657 10,706,688 12,093,178 11,593,252 12,662,977 12,011,165 143 914 2,087 7,258 11,818 2,711 (35,207) (69,292) (84,800) (79,951) (75,119) (260,222) $ 9,690,450 $ 10,637,396 $ 12,008,378 $ 11,513,301 $ 12,587,858 $ 11,750,943 $ 2.474.988 $ (565.227) $ 1.597.807 $ 404,896 $ 2.038.609 $ 266,290 $ 2,595,879 $ (390,303) $ 1,872,755 $ 788,389 $ 2,252,589 $ 369,643 125 Town of Trophy Club, Texas FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (Unaudited) (modified accrual basis of accounting) 2011 2012 2013 2014 General Fund Nonspendable for prepaids $ 2,620 $ 796 $ 796 $ 796 Nonspendable for advances - - - - Assigned for capital expenditures 228,138 228,138 228,138 228,138 Commtted for Police - - - - Unassigned 2,412,034 2,902,168 2,398,330 2,816,087 Reserved - - - - Unreserved - - - - Total general fund $ 2,642,792 $ 3,131,102 $ 2,627,264 $ 3,045,021 All Other Governmental Funds Nonspendable $ - $ - $ - $ - Restricted for: Debt Service 85,388 94,267 119,722 118,092 Capital Projects 1,599,988 996,425 2,065,759 4,505,273 Court - 49,962 60,927 46,253 Public Safety - - 23,007 93,746 Street Maintenance 34,750 75,999 46,700 39,915 Tourism 1,890 1,321 87,225 283,481 Parks - - - - PID No. 1 - - - Town Anniversary 2,114 2,114 2,114 2,114 Water Services 12,788 - - - Committed for: Recreation programs - - - 2,812 Unassigned (26,477) (257,350) (11,517) (6,333) Reserved for: Debt service - - - - Prepaid items - - - - Encumbrances - - - - Capital projects funds - - - - Unreserved, reported in: Special revenue funds - - - - Total all other governmental funds $ 1,710,441 $ 962,738 $ 2,393,937 $ 5,085,353 Source: Town audited financial records (1) The Town implemented the GASB 54 during fiscal year ended September 30, 2011 126 2015 2016 2017 2018 2019 2020 $ 1,816 $ 54,397 $ 91,278 $ 44,474 $ 3,184 $ 2,609 - - - 386,503 386,503 386,503 228,138 - - - - - 200, 000 189,475 183,858 182,718 177,130 169,592 3,261,235 3,950,290 4,335,983 4,826,823 5,256,436 6,988,719 $ 3,691,189 $ 4,194,162 $ 4,611,119 $ 5,440,518 $ 5,823,253 $ 7,547,423 $ - $ - $ - $ 205,668 $ - $ - 118,542 143,174 309,043 262,277 473,670 706,640 1,694,546 8,764,936 6,285,515 5,764,419 3,568,072 1,984,646 43,422 39,668 37,819 37,155 30,036 32,838 134,265 210,189 71,259 9,886 9,886 9,886 65,306 - 92,856 29,337 92,457 184,556 475,748 564,363 399,883 790,686 1,313,981 1,530,643 - - - 467,425 220,464 385,727 4,229,068 3,869,425 3,832,851 3,882,225 3,972,188 3,971,196 3,497 - - - - - 3,395 2,269 7,307 3,655 3,028 5,062 (6,327) (5,017) - - - - 127 Town of Trophy Club, Texas CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (Unaudited) (modified accrual basis of accounting) 2011 2012 2013 2014 Revenues Taxes Ad valorem taxes $ 4,457,829 $ 4,916,886 $ 5,330,778 $ 5,908,764 Sales and mixed beverage taxes 631,561 754,105 781,054 965,969 Franchise taxes 608,806 693,722 718,952 772,621 Occupancy 22,644 20,543 108,170 235,796 Special assessments - - - - Licenses, permits & fees 798,520 1,128,234 968,285 904,251 Intergovernmental 375,749 342,894 888,896 133,004 Charges for services 1,140,556 670,186 592,146 611,781 Fines & Fees 167,461 157,143 171,579 126,111 Contributions 265,426 322,536 1,472 - Investment Income 15,162 7,983 7,193 4,974 Grant revenue 318,954 1,400,252 490,850 61,383 Miscellaneous 335,796 82,057 388,894 485,380 Total revenues 9,138,464 10,496,541 10,448,269 10,210,034 Expenditures Current: General government PID activities Public safety Highways & streets Community development Water and sewer Culture & recreation Debt Service: Principal Interest Other charges Capital Outlay Total expenditures 1,763,048 1,968,287 2,237,263 2,408,103 811,854 2,017,548 189,425 481,473 617,001 92 1,523,133 1,659,656 803,000 885,000 551,955 475,266 74,324 21,200 q Qan K1n 1 A n1 401 11 041 4.11 11 17n 114 1,844,939 1,947,650 2,905,923 2,918,484 1,067,962 517,964 576,306 587,760 1,491,496 1,853,811 2,294,000 998,000 456,417 398,872 29,367 75,100 117 QQA QQq A14, 1 n OnA 1AK 1 n 1 Q2 n77 Excess of revenues over (under) expenditures (4,823,169) (823,775) (456,077) 26,957 128 2015 2016 2017 2018 2019 2020 $ 7,469,912 $ 7,724,244 $ 8,132,670 $ 8,600,999 $ 8,967,795 $ 9,359,847 1,104,298 1,217,694 1,306,243 1,150,073 1,271,864 1,445,994 811,052 953,622 888,863 867,446 911,738 850,543 264,708 302,374 487,489 619,506 669,983 387,759 1,917,636 1,986,516 2,129,321 2,166,167 2,176,400 2,187,165 697,378 598,586 333,780 614,931 499,302 479,513 326,195 26,237 581,633 608,910 724,333 2,056,622 293,011 310,735 820,530 767,237 769,962 296,947 580,648 362,409 355,504 497,078 312,267 132,877 11,330 65,708 146,015 259,213 512,922 183,858 147,691 7,942 - - - - 100,202 407,418 158,540 715,535 402,894 386,615 2,273,447 2,349,120 2,191,140 2,404,704 3,164,364 2,584,454 314,344 81,793 44,984 2,850 26,875 50,152 2,896,632 3,187,064 4,117,992 4,441,873 4,872,242 4,977,216 516,035 566,927 179,448 340,910 414,938 388,419 479,477 576,508 582,259 449,178 568,239 491,941 1,799,204 1,892,065 1,991,571 2,708,827 2,250,599 2,380,448 1,438,000 2,153,974 1,567,004 1,675,350 1,723,652 3,081,206 2,504,235 2,055,694 2,555,580 2,791,600 2,805,764 1,546,749 42,736 1,340,786 74,591 5,235 5,900 67,636 3,466,307 3,395,509 9,146,919 1,239,065 2,860,040 1,735,016 15,730,417 17,599,440 22,451,488 16,059,592 18,692,613 17,303,237 (2,006,356) (3,635,955) (7,110,900) 807,503 (1,473,153) 464,503 129 Town of Trophy Club, Texas CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS Last Ten Fiscal Years (Unaudited) (modified accrual basis of accounting) OTHER FINANCING SOURCES (USES) Proceeds from capital lease obligation Proceeds from contractual obligations Sale of general capital assets Insurance recoveries Proceeds from bonds Premium on bonds Payment to refunded bond escrow agent Transfer from other funds Transfer to other funds Total other financing sources (uses) NET CHANGE IN FUND BALANCES Debt service as a percentage of non -capital expenditures Source: Town audited financial records 11MI 'Ini11 Imz In11n 2,500,000 2,790,000 500,000 1,300,000 600,000 118,904 33,794 50,329 (2,825,503) - - - 185,835 191,878 876,553 55,741 (110,016) (127,496) (826,909) (27,134) 159,220 564,382 1,383,438 3,178,936 $ (4,663,949) $ (259,393) $ 927,361 $ 3,205,893 15.81% 13.72% 25.79% 15.02% 130 2015 2016 2017 2018 2019 2020 - - - 264,732 - - - 4,210,000 - - - - - - - - - 32,213 - - - - - 27,769 2,030,000 31,399,979 4,445,000 - - 3,550,000 - 5,020,788 128,317 - - - (2,026,710) (29,734,500) - - - (3,485,838) 63,350 493,947 993,250 298,457 89,937 264,433 (28,000) (423,741) (906,363) (63,817) (3,000) (1,500) 38,640 10,966,473 4,660,204 499,372 86,937 387,077 $ (1,967,716) $ 7,330,518 $ (2,450,696) $ 1,306,875 $ (1,386,216) $ 851,580 32.14% 39.08% 31.55% 31.40% 28.65% 30.78% 131 mommommm- for TOWN OF TROPHY CLUB Town of Trophy Club, Texas ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years (Unaudited) Fiscal Year Estimated Market Value Real Non Real Property Property Less: Tax Exempt Property Total Taxable Assessed Value 2011 $ 901,333,893 $ 24,792,616 $ 52,794,045 $ 873,332,464 2012 971,822,347 23,862,338 54,212,507 941,472,178 2013 1,068,605,127 24,460,719 59,911,204 1,033,154,642 2014 1,248,215,265 25,845,178 60,160,746 1,213,899,697 2015 1,426,754,517 20,304,259 64,382,412 1,382,676,364 2016 1,618,577,881 28,301,916 68,622,814 1,578,256,983 2017 1,816,191,857 29,805,970 73,301,474 1,772,696,353 2018 1,986,456,291 32,335,529 83,492,349 1,935,299,471 2019 2,146,374,412 34,488,137 79,947,523 2,100,915,026 2020 2,245,060,094 34,337,805 173,637,626 2,105,760,273 Source: Denton & Tarrant County Central Appraisal District Certified Roll Note: Total Taxable Assessed Value is not adjusted for tax ceilings. Total Direct Tax Rate $ 0.51500 0.53000 0.51854 0.49930 0.49000 0.48400 0.47300 0.45144 0.44644 0.44644 133 Town of Trophy Club, Texas DIRECT AND OVERLAPPING PROPERTY TAX RATES Last Ten Fiscal Years (Unaudited) Town of Trophy Club Overlapping Rates Fiscal Operating Debt Service Total Town Northwest Trophy Club Trophy Club Denton Year Millage Millage Millage ISD MUD #1 MUD #2 County 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 2020 0.336442 0.110000 0.446442 1.420000 0.112730 - 0.225278 Source: Denton & Tarrant County Appraisal Districts (1) The Town implemented the GASB 34 model of reporting fiscal year ending September 30, 2004. 134 Overlapping Rates Total Tarrant Tarrant Total Total Direct & Trophy Club Tarrant County County MUD #1 PID #1 ESD Overlapping PID #1 ESD County College Hospital Millage Millage Rates $ 0.109250 $ 0.264000 $ 0.137640 $ 0.227897 $ 2.987570 $ 2.390930 $ 3.097687 0.109250 0.264000 0.148970 0.227897 2.994564 2.406594 3.107474 0.104000 0.264000 0.149500 0.227897 2.942300 2.395410 3.055197 0.087380 0.264000 0.149500 0.227897 2.985984 2.439094 3.098881 0.077270 0.264000 0.149500 0.227897 2.948860 2.401970 3.066757 0.072220 0.264000 0.149500 0.227897 2.925360 2.380720 3.043257 0.074450 0.254000 0.144730 0.227897 2.884309 2.358359 3.002206 0.068700 0.244000 0.140060 0.224429 2.861593 2.357323 2.976022 0.067190 0.234000 0.136070 0.224429 2.825456 2.339206 2.939885 0.067380 0.234000 0.136070 0.224429 2.746000 2.269100 2.866329 135 Taxpayer Town of Trophy Club, Texas PRINCIPAL PROPERTY TAXPAYERS Current Fiscal Year and Nine Years Ago (Unaudited) Taxable Assessed Value 2020 Rank Percentage of Total Taxable Assessed Value (1) Trophy Club 12 LLC $ 17,000,000 1 0.81% Trophy Club Equities LLC 8,449,780 2 0.40% Oncor Electric Delivery Co 8,049,710 3 0.38% 4663 Okeechobee Blvd. and Palm Beach Holdings 7,690,897 4 0.37% Clubcorp Colf TEX LP P/S 6,479,633 5 0.31% Armore II - Quorum LLC 6,439,600 6 0.31% NAP Trophy Club LP 6,360,568 7 0.30% JLIS LLC 5,167,700 8 0.25% Scott, Larry P & Laurie Ann LLC 3,205,207 9 0.15% Wonderland Plaza 3,090,538 10 0.15% Regency Centers LP - n/a n/a Goodman Family of Builders LP - n/a n/a BDMR Development LLC - n/a n/a Staandard Pacific of Texas LP - n/a n/a High Trophy Development LLC - n/a n/a Lennar Homes of Texas - n/a n/a Randall's Food & Drug - n/a n/a TC Plantations LTD P/S - n/a n/a Totals $ 71,933,633 3.41% 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 $840,801,505 136 2011 Percentage of Taxable Total Taxable Assessed Assessed Value Rank Value (2) $ - n/a n/a - n/a n/a 4,726,100 8 0.56% 5,000,000 7 0.59% 4,397,545 9 0.52% - n/a n/a - n/a n/a - n/a n/a - n/a n/a - n/a n/a 7,094,526 1 0.84% 6,272,995 2 0.75% 6,030,947 3 0.72% 5,987,095 4 0.71% 5,807,077 5 0.69% 5,184,902 6 0.62% 2,996,994 10 0.36% - n/a n/a $ 53,498,181 6.35% 137 mommommm- for TOWN OF TROPHY CLUB IPIM Fiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total Tax Levy for Fiscal Year $ 4,446,960 4,858,136 5,259,719 5,904,591 6,665,433 7,477,394 8,188,616 8,627,946 9,027,118 9,504,473 Town of Trophy Club, Texas PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years (Unaudited) Collected within the Fiscal Year of the Levy Amount Percentage of Levy $ 4,414,699 99.27% 4,838,092 99.59% 5,244,699 99.71% 5,869,976 99.41% 6,642,558 99.66% 7,456,542 99.72% 8,153,915 99.58% 8,614,737 99.85% 8,992,174 99.61% 9,400,652 98.91% Source: Denton County Tax Assessor Collector Collections in Subsequent Years $ 25,723 13,713 7,742 26,189 14,249 13,166 10,781 2,176 34,943 Total Collections to Date Amount $ 4,440,422 4,851,805 5,252,441 5,896,165 6,656,806 7,469,708 8,164,696 8,616,913 9,027,117 9,400,652 Percentage of Levy 99.85% 99.87% 99.86% 99.86% 99.87% 99.90% 99.71 % 99.87% 100.00% 98.91 % 139 Town of Trophy Club, Texas RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years (Unaudited) Governmental Activities General Certificates Special Fiscal Obligation of Assessment Year Bonds Obligation Bonds Premium 2011 $ 11,833,750 $ 709,000 $ 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 2016 12,375,000 7,961,000 2017 11,450,000 12,068,000 2018 10,640,000 11,415,000 2019 9,805,000 10,637,000 2020 9,005,000 9,789,000 (1) Personal Income and population found on Table 15 of the Statistical Section Capital Leases $ - $ 30,570 26,481,000 - - 25,710,479 4,916,763 - 25,406,475 4,754,458 - 25,285,577 4,457,420 173,280 25,260,000 4,160,382 88,205 23,985,000 3,872,927 - 140 Business -Type Activities Certificates of Obligation Premium Total Percentage Primary of Personal Per Government Income (2) Capita - $ - $ 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% 4,106 670,000 12,522 47,334,449 6.98% 3,802 141 Town of Trophy Club, Texas RATIO OF GENERAL BONDED DEBT OUTSTANDING Last Ten Fiscal Years (Unaudited) Percentage of General Special Actual Taxable Obligation Certificates of Assessment Value of Fiscal Year Bonds Obligation Bonds Property' Per Capita 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 2020 9,005,000 9,789,000 23,985,000 0.89% 1,509 a Property values are from table 5. b Populations are from table 12. 142 Town of Trophy Club, Texas DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of September 30, 2020 (Unaudited) Governmental Unit Debt repaid with property taxes: Denton County Northwest Independent School District Tarrant County Tarrant County College District Tarrant County Hospital District Trophy Club MUD #1 Subtotal, overlapping debt Town of Trophy Club, direct debt Total Direct and Overlapping Debt Principal Estimated Estimated Share of Debt Principal Percentage Overlapping Outstanding Applicable Debt $ 611,835,000 2.08% $ 12,755,643 1,065,295,272 5.32273% 56,702,754 240,445,000 0.07% 179,963 264,175,000 0.00% - 16,135,000 0.07% 12,076 7,205,000 0.60% 42,918 $ 2,205,090,272 $ 69,693,354 49,862,382 100.00% 49,862,382 $ 2,254,952,654 $ 119,555,736 Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the Town of Trophy Club. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. Source: Most recent Texas Municipal Reports (TMR) published by the Municipal Advisory Council of Texas. 143 mommommm- for TOWN OF TROPHY CLUB liffEll Town of Trophy Club, Texas DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years Median Estimated Total Household Total Personal Unemployment Year Population' Households' Income Income Rate` 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 2020 12,451 4,600 147,477 678,394,200 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. 145 Town of Trophy Club, Texas PRINCIPAL EMPLOYERS Current Year and Seven Years Ago (1) 2020 Percentage of Total Town Employer Employees Employment Northwest Independent School District 414 20.70% Baylor Medical Center at Trophy Club 230 10.75% Trophy Club Country Club 215 11.50% Town of Trophy Club 152 7.60% Tom Thumb 127 6.35% HG Sply Co. 67 3.35% Fellowship United Methodist Church 39 1.95% Premier Academy - Trophy Club 33 1.65% Trophy Lake Academy 30 1.50% Church at Trophy Club Lake 30 1.50% Cristina's Mexican Restaurant 28 1.40% Total 1,365 68.25% (1) Employment data is not available prior to 2013. (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 146 2013 Percentage of Total Town Employer Employees 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�U�3 t56.tS1% 147 Town of Trophy Club, Texas FULL-TIME TOWN GOVERNMENT EMPLOYEES BY FUNCTION Last Ten Fiscal Years (Unaudited) Function 2011 2012 2013 2014 2015 General Government and Adminstration 12 13 12 14 13 Public Safety 22 23 28 31 32 Streets 5 5 5 5 4 Parks and Recreation 11 16 16 17 17 Community Development 3 5 6 7 6 Total 53 62 67 74 72 Source: Departmental records 148 2016 2017 2018 2019 2020 14 13 14 14 13 33 33 34 41 41 4 4 2 3 3 17 6 16 6 17 6 14 5 14 4 73 73 73 77 75 149 Town of Trophy Club, Texas OPERATING INDICATORS BY FUNCTION Last Ten Fiscal Years (Unaudited) Function 2011 2012 2013 2014 Public Safety Police Number of stations 1 1 1 1 Number of police personnel 17 15 18 23 Number of arrests 128 102 101 82 Number of traffic stops 2,821 2,602 2,443 2,004 Fire Number of stations 1 1 1 1 Number of fire personnel 14 14 14 15 Number of calls answered 741 845 945 907 Developmental Miles of streets 42 43 43 43 Parks/Recreational Changes Parks 7 6 6 6 Park acreage 1,037 1,039 1,039 1,039 Source: Departmental records 150 2015 2016 2017 2018 2019 2020 1 1 1 2 2 1 25 25 26 26 24 25 125 145 148 130 275 157 2,912 3,635 2,922 4,262 5,397 3,106 1 1 1 1 1 1 15 16 17 18 17 17 868 898 868 858 871 965 43 43 43 43 52 52 6 6 6 6 6 6 1,039 1,039 1,039 1,039 1,039 1,039 151