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ORD 2007-29ORDINANCE NO. 2007-29 AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB ACCEPTING AND APPROVING A SERVICE AND ASSESSMENT PLAN AND ASSESSMENT ROLL FOR THE TOWN OF TROPIIY CLUB PUBLIC IMPROVEMENT DISTRICT NO. 1; MAKING A FINDING OF SPECIAL BENEFIT TO THE PROPERTY IN THE DISTRICT; LEVYING SPECIAL ASSESSMENTS AGAINST PROPERTY WITHIN THE DISTRICT AND ESTABLISHING A LIEN ON SUCH PROPERTY; PROVIDING FOR PAYMENT OF THE ASSESSMENTS IN ACCORDANCE WITH CHAPTER 372, TEXAS LOCAL GOVERNMENT CODE, AS AMENDED; PROVIDING FOR THE METHOD OF ASSESSMENT AND THE PAYMENT OF THE ASSESSMENTS, PROVIDING PENALTIES AND INTEREST ON DELINQUENT ASSESSMENTS, PROVIDING FOR SEVERABILITY, AND PROVIDING AN EFFECTIVE DATE WHEREAS, on March 16, 2007, a petition was submitted and filed with the Town Secretary (the "Town Secretary") of the Town of Trophy Club, Texas (the "Town") pursuant to the Public Improvement District Assessment Act, Chapter 372, Texas Local Government Code (the "PID Act'), requesting the creation of a public improvement district over a portion of the area of the Town to be known as The Town of Trophy Club Public Improvement District No. 1 (the "District'); and WHEREAS, the petition contained the signatures of the owners of taxable property representing more than fifty percent of the appraised value of taxable real property liable for assessment within the District, as detern-imed by the then current ad valorem tax rolls of the Denton Central Appraisal District and the signatures of property owners who own taxable real property that constitutes more than fifty percent of the area of all taxable property that is liable for assessment by the District; and WHEREAS, on May 7, 2007, after due notice, the Town Council of the Town (the "Town Council") held the public hearing in the manner required by law on the advisability of the public improvements and services described in the petition as required by Sec. 372.009 of the PID Act and made the findings required by Sec. 372.009(b) of the PID Act and, by Resolution No. 2008-08, adopted by a majority of the members of the Town Council, authorized the District in accordance with its finding as to the advisability of the public improvement and services; and WHEREAS, on May 18, 2007, the Town published notice of its authorization of the District in the Trophy Club Times, a newspaper of general circulation in the Town; and WHEREAS, no written protests of the District from any owners of record of property within the District were filed with the Town Secretary within 20 days after May 18, 2007; and 1302032v.1 TR0200/58000 WHEREAS, on May 21, 2007, the Council adopted a resolution (the "Cost Resolution") determining the total costs of the District improvements, directing the filing of a proposed assessment roll, and directing related action; and WHEREAS, on October 15, 2007, the Coucil adopted a resolution accepting the proposed Service and Assessment Plan and the proposed Assessment Roll and authorized the publication of notice of a public hearing to consider the approval of the proposed Service and Assessment Plan and proposed Assessment Roll, in a newspaper of general circulation in the Town and such proposed Assessment Roll was placed on file with the Town Secretary for public inspection; and WHEREAS, the Town Council, pursuant to Section 372.016(b) of the PID Act, published notice on October 19, 2007 in the Trophy Club Times of a public hearing in a newspaper of general circulation in the Town to consider the proposed "Assessment Roll" and the "Service and Assessment Plan" and the levy of the "Assessments" on property in the District; and WHEREAS, the Town Council, pursuant to Section 372.016(c) of the PID Act, by causing the mailing of the notice of the public hearing to consider the proposed Assessment Roll and the Service and Assessment Plan and the levy of Assessments on property in the District to the last lmown address of the owners of the property liable for the Assessments; and WHEREAS, the Town Council convened the hearing at 7:00 p.m. on the 5th day of November, 2007, at which all persons who appeared, or requested to appear, in person or by their attorney, were given the opportunity to contend for or contest the Plan, the Assessment Roll, and each proposed assessment, and to offer testimony pertinent to any issue presented on the amount of the Assessment, the allocation of Costs, the purposes of the Assessment, the special benefits of the Assessment, and the penalties and interest on annual installments and on delinquent annual installments of the Assessment; and WHEREAS, the Town Council finds and determines that the Assessment Roll and the Service and Assessment Plan should be approved and that the Assessments (as defined in the Service and Assessment Plan) should be levied as provided in this Ordinance and the Service and Assessment Plan and Assessment Roll; and WHEREAS, the Town Council further finds that there were no written objections or evidence submitted to the Town Secretary in opposition to the Service and Assessment Plan, the allocation of Costs, the Assessment Roll, and the levy of Assessments; and WHEREAS, prior to the issuance of bonds secured by the Assessments, the owners (the "Landowners" or the "Assessed Parties") of 100% of the privately -owned and taxable property located within the District, and who are the persons to be assessed pursuant to this Ordinance, will have executed and presented to the Town Council for approval and acceptance a Landowner Agreement (the "Landowner Agreement") in the form and substance acceptable to the Town, in which the Assessed Parties approve and accept the Service and Assessment Plan, approve the Assessment Roll, approve this Ordinance and approve the levy of the Assessments against their property located within the District, and agree to pay the Assessments when due and payable and 1302032v.1 TR0200/58000 WHEREAS, the Town Council closed the hearing, and, after considering all written and documentary evidence presented at the hearing, including all written comments and statements filed with the Town, determined to proceed with the adoption of this Ordinance in conformity with the requirements of the PID Act. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: Section 1. Terns. Terms not otherwise defined herein are defined in the Service and Assessment Plan attached hereto as Exhibit A (the "Service and Assessment Plan"). Section 2. Findings. The findings and determinations set forth in the preambles are hereby incorporated by reference for all purposes. The Town Council hereby finds, determines, and ordains, as follows: (a) The apportionment of the Costs of the Authorized Improvements (as reflected in the PID Costs in the Service and Assessment Plan, and the Annual Collection Costs pursuant to the Service and Assessment Plan is fair and reasonable, reflects an accurate presentation of the special benefit each property will receive from the construction of the public improvements identified in the Service and Assessment Plan, and is hereby approved; (b) The Service and Assessment Plan covers a period of at least five years and defines the aminal indebtedness and projected costs for the Improvement Project; (c) The Service and Assessment Plan apportions the cost of a public improvement to be assessed against property in the District and such apportionment is made on the basis of special benefits accruing to the property because of the improvement. (d) All of the real property in the District which is being assessed in the amounts shown in the Assessment Roll will be benefited by the services and improvements proposed to be provided through the District in the Service and Assessment Plan, and each parcel of real property will receive special benefits in each year equal to or greater than each annual Assessment and will receive special benefits during the term of the Assessments equal to or greater than the total amount assessed; (e) The method of apportionment of the PID Costs and Annual Collection Costs set forth in the Service and Assessment Plan results in imposing equal shares of the PID Costs and Annual Collection Costs on property similarly benefited, and results in a reasonable classification and formula for the apportionment of the Costs; (f) The Service and Assessment Plan should be approved as the service plan and assessment plan for the District as described in Sections 372.013 and 372.014 of the PID Act; -3- 1302032v.1 TR0200/58000 (g) The Assessment Roll in the form attached as Exhibit D to the Service and Assessment Plan (the "Assessment Roll") should be approved as the assessment roll for the District; (h) The provisions of the Service and Assessment Plan relating to due and delinquency dates for the Assessments, interest on Annual Installments, interest and penalties on delinquent Assessments and delinquent Annual Installments, and procedures in connection with the imposition and collection of Assessments should be approved and will expedite collection of the Assessments in a timely manner in order to provide the services and improvements needed and required for the area within the District; and (i) A written notice of the date, hour, place and subject of this meeting of the Town Council was posted at a place convenient to the public for the time required by law preceding this meeting, as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended, and that this meeting has been open to the public as required by law at all times during which this Ordinance and the subject matter hereof has been discussed, considered, and formally acted upon. Section 3. Assessment Plan The Service and Assessment Plan is hereby accepted and approved pursuant to the PID Act Sections 372.013 and 373.014 as the service plan and the assessment plan for the District. Section 4. Assessment Roll. The Assessment Roll is hereby accepted and approved pursuant to the PID Act Section 372.016 as the assessment roll of the District. Section 5. Levy and Payment of Special Assessments for Costs of Improvement Project. (a) The Town Council hereby levies an assessment on each tract of property located within the District, as shown and described on the Service and Assessment Plan and the Assessment Roll, in the respective amounts shown on the Assessment Roll as a special assessment on the properties set forth in the Assessment Roll. (b) The levy of the Assessments shall be effective on the date of execution of this Ordinance levying assessments and strictly in accordance with the terms of the Service and Assessment Plan. (c) The collection of the Assessments shall be as described in the Service and Assessment Plan. (d) Each Assessment may be paid in a lump sum or may be paid in Annual Installments pursuant to the terms of the Service and Assessment Plan. (e) Each Assessment shall bear interest at the rate or rates specified in the Service and Assessment Plan. -4- 1302032v.1 TR0200/58000 (f) Each Annual Installment shall be collected each year in the manner set forth in the Service and Assessment Plan. (g) The Annual Collection Costs for Assessed Properties shall be calculated pursuant to the terms of the Service and Assessment Plan. Section 6. Method of Assessment. The method of apportioning the Costs is as set forth in the Service and Assessment Plan. Section 7. Penalties and Interest on Delinquent Assessments. Delinquent Assessments shall be subject to the penalties, interest, procedures, and foreclosure sales set forth in the Service and Assessment Plan. The Assessments shall have lien priority as specified in the PID Act and the Service and Assessment Plan. Section S. Prepayments of Assessments. (a) As provided in subsection 372.018(b) of the PID Act and in Section VI(E) of the Service and Assessment Plan, the owner of any Assessed Property may prepay the the Assessments levied by this Ordinance. Section 9. Lien Priority. As provided in the Landowner Agreement, the Town Council and the Landowners intend for the obligations, covenants and burdens on the Landowners of Assessed Properties, including without limitation such Landowners' obligations related to payment of the Assessments and the Annual Installments, to constitute a covenant running with the land. The Assessments and the Annual Installments levied hereby shall be binding upon the Assessed Parties, as the Landowners of Assessed Properties, and their respective transferees, legal representatives, heirs, devisees, successors and assigns in the same manner and for the same period as such parties would be personally liable for the payment of ad valorem taxes under applicable law. Assessments shall have lien priority as specified in the Service and Assessment Plan and the PID Act. Section 10. Appointment of Administrator and Collector of Assessments. (a) Appointment of Administrator. MuniCap, Inc., of Columbia, Maryland, is hereby appointed and designated as the initial Administrator of the Service and Assessment Plan and of the Assessments levied by this Ordinance. The Administrator shall perform the duties of the Administrator described in the Service and Assessment Plan and in this Ordinance. The Administrator's fees, charges and expenses for providing such service shall constitute an Annual Collection Cost. (b) Appointment of Temporary Collector. Salcura Dedrilc, Finance Director of the Town, is hereby appointed as the temporary collector of the Assessments (the "Collector"). The Collector shall serve in such capacity until -5- 1302032v.1 TR0200/58000 such time as the Town shall arrange for the Collector's duties to be performed by the Denton County Tax Assessor and Collector or another qualified collection agent selected by the Town. Section 11. Applicability Of Tax Code. To the extent not inconsistent with this Ordinance, and not inconsistent with the PID Act or the other laws governing public improvement districts, the provisions of the Texas Tax Code shall be applicable to the imposition and collection of Assessments by the Town. Section 12. Severability. If any provision, section, subsection, sentence, clause, or phrase of this Ordinance, or the application of same to any person or set of circumstances is for any reason held to be unconstitutional, void, or invalid, the validity of the remaining portions of this Ordinance or the application to other persons or sets of circumstances shall not be affected thereby, it being the intent of the Town Council that no portion hereof, or provision or regulation contained herein shall become inoperative or fail by reason of any unconstitutionality, voidness, or invalidity of any other portion hereof, and all provisions of this Ordinance are declared to be severable for that purpose. Section 13. Effective Date. This Ordinance shall take effect, and the levy of the Assessments, and the provisions and terms of the Service and Assessment Plan shall be and become effective on upon passage and execution hereof. However, the Service and Assessment Plan and this Ordinance shall automatically terminate if bonds secured by the Assessments are not issued by the Town on or before September 31, 2008. [Remainder of page left blank intentionally] -6- 1302032v.1 TR0200/58000 ADOPTED, PASSED, and APPROVED by the Town Council, by a vote of --7- , members voting "for" and O members voting "against' and with D absentees, on this 5th day of November, 2007. Attest: Town Secretary Approved as to Form: �h����i7 �����✓. !moi Town Attorney -7- 1302032v.1 TR0200/58000 Town of Trophy Club Mayor h f EXHIBIT A SERVICE AND ASSESSMENT PLAN A-1 1302032v.1 TRO200/58000 THE TOWN of TROPHY CLUB PUBLIC I,MPROVEMENT DISTRICT NO. 1 (TBE HIGRLAN➢s AT TROPRY CLUB) SERVICE AND ASSESSMENT PLAN Table of Contents Section I Plan Description and Defined Terms Section U Property Included in die PID 5 Section Ul Description of Authorized Improvements 6 Section P/ Service Plan g Section V Assessment Plan I I Section VI Tetras of the Assessment 16 Section VlI Assessment Roll 20 Section V1B Miscellaneous Provisions 21 List of Exhibits Exldbit A The PID iMap Exhibit B-1 Estimated PID Costs Exhibit B-2 Allocation of Costs to the PID Exhibit C Diagrams of the Authorized Improvements Exhibit D Assessment Roll 192 costs or anticipated costs of., (i) issuing, refunding or refinancing bonds, (ii]l computing, levying, collecting and transmitting die Assessments (whether by the Town, the Administrator or otherwise), (iii) remitting the Assessments to the Trustee, (iv) the Town, the Administrator and Trustee (including legal counsel) in the discharge of their duties, (v) complying with arbitrage rebate requirements, (vi) complying with securities disclosure requirements, and (vii) the Tot" in any way related to the collection of the Assessments in installments, including, without limitation, the administration of the PID, maintaining the record of installments payments and reallocations and/or cancellations of Assessments, and the repayment of the Bonds, including, without limitation, any associated legal expenses, the reasonable costs of other consultants and advisors and contingencies and reserves for such costs as deemed appropriate by the Tot" Council. Annual Collection Costs collected and not expended for actual Annual Collection Costs shall be carried forward and applied to reduce Annual Collection Costs in subsequent years to avoid the over-collection of Annual Collection Costs. "Annual Installment" means, with respect to each Parcel, each annual payment of the Assessment, as shown on the Assessment Roll attached hereto as ExhibitD or an Annual Service Plan Update, and calculated as provided in Section N of this Service and Assessment Platt. "Annual Service Plan Update" Ins the meaning set forth in the fust paragraph of Section IV of this Service and Assessment Plan. "Assessed Property" means, for any year, Parcels within the PID otter than Non-Benefited Property. "Assessment" means the assessment levied against a Parcel imposed pursuant to the Assessment Ordinance and the provisions herein, as shown on the Assessment Roll, subject to reallocation upon the subdivision of such Parcel created by such subdivision or reduction according to tie provisions herein and the PID Act. "Assessment Ordinance" means the Assessment Ordinance approved by the Tot" Council to approve the imposition of the Assessments. "Assessment Revenues" mean the revenues actually received by the Tot" ftnm Assessments. "Assessment Roll" means the document included in this Service mid Assessment Plan as Exltibit D, ns updated, modified or amended from time to time in accordance with tie procedures set forth herein and in the PID Act. "Authorized Improvements" mean trose public improvements described in Edtibir B-1 of this Service and Assessment Plan and Section 372.003 of the I'ID Act. "Bond Indenture" means the indenture, ordinance or similar document setting forth the terms mid other provisions relating to the Bonds, as modified, amended, and/or supplemented from time to time. "Bonds" mean any bonds secured by Assessment Revenues issued by the Town in one or more series. "Costs" mean the actual or budgeted costs, as applicable, of all or any portion of the Authorized Improvements, as described in F_xhibif B-1 of this Service and Assessment Plan. "Delinquent Collection Costs" mean interest, penalties and expenses incurred or imposed with respect to any delinquent installments ofan Assessment in accordance with §372.018(6) of the 194 "Owner Association Property" means property within the boundaries of the PID dint is owned by or irrevocably offered for dedication to, wlredter in fee simple or through an exclusive use casement, a property owners' association. "Parcel" meats a parcel identified by either a tax map identification number assigned by the Denton Central Appraisal District for mal property tax purposes or by lot and block number in a final subdivision plat recorded in the real property records of Denton County. "PID Act" means Texas Local Government Code Chapter 372, improvement Districts in Municipalities and Counties, Subchapter A, Public Improvement Districts, as amended. "PID" has the meaning set forth in Section LA of this Service and Assessment Plan. "PID Costs" mean the actual or budgeted costs, as applicable, of all or any portion of the Authorized Improvements that provide a special benefit to the Assessed Property and are allocated to the PID, as shover in Table III-B. "Planned Development Ordinance" has the meaning set forth in Section IA of this Service and Assessment Plan. "Prepayment Casts" mean interest and expenses reasonably expected to be incurred by or imposed upon the Towar as a result of any prepayment of an Assessment "Public Property" meats property within the boundaries of the PID that is awned by or irrevocably offered for dedication to the federal government, the State of Texas, the Tom, a school district, a public utility provider or any other public agency, whether in fee simple or through an exclusive use easement. "Service and Assessment Plan" means this Service and Assessment Plan prepared for the PID pursuant to the PID Act. "Town" means the Town of Trophy Chub, Texas. "Town Council" means the duly elected governing body of the Town. "Trustee" means the fiscal agent or trustee as specified in die Bond Indenture, including a substitute fiscal agent or trustee. 196 Section III DESCRIPTION OF THE AUTHORIZED IMPROVEMENTS Section 372.003 of the PID Act defines the Authorized Improvements that may be undertaken by a municipality or comity through the establishment of a public improvement district, us follows: 372.003. Authorized Improvements (a) If the governing body of a municipality or county finds that i1 promotes the interests of did municipality at county, tile governing body may undertake an improvement project that confer, a starlet benefit on a definable part of the municipality or county or the municipality's extraterritorial jurisdiction. A project may be undertaken in the municipality or county or the municipality's extraterritorial jurisdiction. (b) A public improvement may include: O landscaping; (ii) erection of fountains, distinctive lighting, and signs; (iii) acquiring, constructing, improving, widening, narrowing, closing or rerouting of sidewalks or of streets, any other roadways, or their rights -of way; (iv) construction or improvement of pedestrian malls; (v) acquisition and installation of pieces afar[; (vi) acquisition, construction, or improvement nftibmries; (vil) acquisition, construction, or improvement ofoff-sireel parking fmilities; (viii) acquisition, construction, improvement, or rerouting of moss transportation facilities; (ix) acquisition, construction, or improvement of water- wastewater, at drainage facilities or improvements; (s) Ilse establishment or improvement or parks; (xi) projects similar to those listed in Subdivisions (i) -(x): (xii) acquisition, by purchase or otherwise- often] property in connection with all oudwri7rd improve ncal; (xiii) special supplemental services for improvement and promotion of the district, including services relating to advertising, promotion, health and sanitation, water and wastewater, public surely, security, business recruitment, development, recrenlion, and cultural enhancement; and (xiv) payment ofexpenses incurred in the establishment, administration and operation of the district. M. Table M -B I'D) Costs Authorized Improvements PID Costs Northwest Parkway improvements, intersection improvements, $3,046,144 and Trophy Club Drive Improvements south of Northwest $50,000 Parkway Trophy Club Drive improvements other than south of $9,794,484 Northwest Parkway Water distribution system (not including elevated water tank) $1,148,100 Elevated water lank $960,000 Wastewater collection system $796,050 Trail system and open space $1,011,039 "lhoroughfare strectscape, median landscaping, sidewalks, irrigation and irrigation well. $I 916 746 Screening walls and neighborhood entry features $700,000 Northeast and Northwest part's $4,914,916 Park drainage improvements $925,049 Constmctinn adminism tion and management $50,000 There are a number of options lar improving the parks, including the following: playgrounds, pavilions. restrooms. soccer Gelds. baseball fields. recreation pool, and ree center. ]]he improvements to be provided by the PID will nice[ the additional recreational needs of the Town related to the increase in population from [he nev housing units to be constructed within the MD. A discussion of the bonded indebtedness expected to be incurred to fund the PID Costs set forth in Table Ill -B is included in Section IV of this Service and Assessment Plait. The costs shohm in ]'able III -Bare estimates and may be revised in Annual Service Plan Updates. Savings from one line item may be applied to a cost increase in another line item. These transfers, however, are limited to the portion of the savings related to the PID's share of the costs, and these savings mny be applied only to the PID's share of the increase in the costs of another line item. 200 The annual projected costs and annual projected indebtedness is shown by *]'able 1V -B. The annual projected costs and indebtedness is subject to revision and shall be updated each in the Annual Somce Phan Update to rellect any changes in the costs or indebtedness expected for cacti year. Table IV -B Anaual Protected Costs and Indebtedness Year Annual Annual Projected Projected Costs Indebtedness 2007 - $27,500,000 $27,500,000 2008 so $0 2009 $0 $o 2010 $0 $0 2011 $0 $0 Total $27,500,000 $27,500,000 M, 202 ilia wrount of the Assessments. This conclusion is based on and supported by the evidence, information, and testimony provided to the Town Council, C. Allocation of Costs to the PID The Authorized Improvements will provide a special benefit to the property inside and Outside Ute PID. Accordingly, the Costs of the Authorized Improvements most be allocated between die property inside the PID and outside of the PID (i.e., to the Town). The Developer has agreed to pay all costs of the Authorized Improvements allocated In the Town. The allocation of these costs is shmhm in Appendix B-2 and summarized as follows: Thorounhl'are improvements — A portion of the Umroughfine improvements provides access to property outside ilia P1D, therefore Ute costs of these improvements me allocated on the basis of estimated trips from property inside and outside Ute PID. The trips from the property in the PID are estimated to represent 80% of die total trips. Accordingly, 80% of the costs of these improvements we allocated to the PID with Ute balance allocated to the Town. A portion of the thoroughfare improvements to Trophy Club Drive provide access only to property in the PID; therefore, Ute improvements are allocated entirely to the PID. Wnter distribution system —The costs of the water distribution system are allocated on the basis of gallons per day of estimated use by property inside and outside the PID. This allocation results in 89% of the costs of the water distribution system being allocated to the PID with the balance being allocated to Uhe Town (note: conunercial property in the development uses less water compared to trips generated, which results in the higher nllomfion of water impmvemcnts compared to thoroughfare improvements). Elevated water tank — The costs of the elevated water tank are allocated on the basis of the estimated storage requirements, including storage requirements for average daily use and fire protection, for property inside the PFD and other property not in the PID but served by the elevated water tank. This allocation results in 80%of these costs being allocated to the PID with the balance being ullmened to the Town. Wastewater collection system — The costs of the wastewater collection system are allocated on Ilia basis of the total estimated sewage generated from property inside the PID and otter properly not in the PID but served by these improvements. This allocation results in 87% of these costs being allocated to the PID with die bolunce allocated to the Town. Thorouehfam lundsuminu— The costs ofthe thoroughfare landscaping arc allocated on the basis or the estimated linear feet of roadway inside the PID compared to the estimated total linear footage on ilia roadway to be built. This allocation results in Sd % or the costs of the improvements being allocated to the PID with the balance allocated to the Town. Screening Walls and Neiahbnrhood Monuments --The screening walls are along roads that are entirely within lire PID and semen property within the PID from the road. Additionally, the road screened by the screening walls primarily provides access to property within the YID. 12 M more expensive homes, on average, will create more vehicle trips and greater demands for water and wastewater consumption, and larger, more expensive homes are likely to be built on larger lots. For exmnple, die Arizona Department of Transportation conducted a study (described in Development and Application of Trip Generation Rates) on the relationship between property values and trip generation totes of residential property. This study examined residential communities in Delaware, Wisconsin, Dido, and several other slates. The study demonstrated a relationship between property value and trip generation rates, with more expensive homes having higher trip generation rates than less expensive homes. 3. Having taken into consideration the matters described above, the Town Council has determined that allocating the PID Costs anhong Parcels based on value after constructing the Authorized Improvements is best accomplished (and most easily illustrated) by creating classificatons of benefited Parcels bused on the "Lot Types" defined in Section LB of this Service and Assessment Plan. These classifications (from Lot Type I representing the highest value to Lot Type 5 representing the lowest value) is set forth in Table V-A below. This table illustrates that the Town Council has determined that a Lot Type 1 dwelling unit receives the greatest benefit from the Authorized Improvements, whicb benefit is given an `Equivalent Unit" value of 1.0 per dwelling unit The Town Council has determined that a Lot Type 2 dwelling unit receives a smaller benefit; namely, 76% of the benefit received by a Type I Lot dwelling unit (hence the Equivalent Uni[ value of 0.76 per dwelling unit). This table illustrates that the Town Council has determined that a Lot Type 3 dwelling unit receives an even smaller benefit; namely, 62% of the benefit received by a Type 1 dwelling unit (hence the Equivalent Unit value of 0.62 per dwelling unit). The table further illustrates that the Town Council has made similar determinations with respect to all of the Lot Types. TAnLE V-A )equivalent Unit Factors Lot Type Average Estimated Unit Vane Equivalent Unit Value Lai Type 1 (single -(hardly S425,000 1.00 per dwelling residential) Lot Type 2 (single-family S325,000 0.76 per dwelling tesidemial) unit Lot Type 3 (single-family 5265,000 0.62 per dwelling residential) unit Lm Type 4(5ingle4artily SI25,000 0.530crdwclling residential) unit Lot Type 5(ntaahetl 5165,000 0.44 per dwelling residential) unit 14 r�• Section VI TERMS OR TITC ASSESSMENTS A_ Amount of Assessments The Assessment for each Parcel is shown on the Assessment Roll, and no Assessment shall be changed except as authorized by this Service and Assessment Plan or the PID Act. The Assessments shall not exceed the mount required to repay the principal amount of the Bonds and shall be collected with interest and Annual Collection Costs in an amount to pay principal and interest on the Bonds and to cover Annual Collection Costs of the PID. B. Reallocation of Assessments 1. Upon Subdivision Upon the subdivision of any Parcel, the Administrator sball reallocate the Assessment for the Parcel prior to the subdivision among the new subdivided Parcels according to the following Formula; A=B x(C+D) Where the terms have The following meanings: A = the Assessment for cath new subdivided Parcel. B = the Assessment for the Parcel prior to subdivision. C = die Equivalent Units allocated to each newly subdivided Parcel D = the sum of tic Equivalent Units for all of the new subdivided Parcels The calculation of die Equivalent Units as to a Parcel shall be perforated by die Administrator and confirmed by flit Town Council based on die information available regarding the use of the Paucel. The estimate as cunGmrcd shall be conclusive. The number of units to be built an a Parcel may be estimated by net land area and reasonable density ratios. Lot type shall be determined by the description that is most similar to the lots being classified. The sum of the Assessments for all newly subdivided Parcels shall equal die Assessment for die Price] prior to subdivision. The calculation shall be made separately for each newly subdivided Parcel. The reallocation of an Assessment for a Parcel that is a honiestmil under Texas low may not exceed the Assessment prior to tic reallocation. Any reallocation pursuant to this section shall bt reflected man update to this Service and Assessment Plan approved by the Town Council. 2. Upon Consolidation Upon the consolidation of two or more Parcels; the rLssessment Iar the consolidated Parcel shall be the sum of the Assessments for the Parcels prior to consolidation. The reallocation of an Assessment rain Parcel that is o homestead under Texas low may not exceed the Assessment lb WL amount shall be reduced by the amount, if any, of interest through the dale of redemption of Bonds and reserve funds applied to the redemption under the Bond Indenture, net of any other costs applicable to die redemption of Bonds. (b) If an Annual Installment has been billed prior to payment in full of an Assessment, the Annual Installment shall be due mrd payable and shall be credited against the payment -in -full amount. (c) Upon payment in full of an Assessment and all Prepayment Costs, tie Town shall deposit the payment in accordance with the Bond Indenture; whereupon, the Assessment shall be reduced to zero, and the owner's obligation to pay die Assessment and Annual Installments thereof shall automatically terminate. (d) At the option of the owner, die Assessment on any Parcel plus Prepayment Costs may be paid in part in an amount sufficient to allow far a convenient redemption of Bonds as determined by the Administrator. Upon the payment of such amounts for a Parcel, the Assessment for the Parcel shall be reduced, the Assessment Roll shall be updated to reflect such partial payment, and the obligation to pay the Annual Installment for such Parcel shall be reduced to the extent the partial payment is made. 2. Payment in Annual Installments The Act provides that an Assessment for a Parcel may be paid in fill] at any time. If not paid in full, the Act authorizes die Town to collect interest and collection costs on the outstanding Assessment. An Assessment for a Parcel that is not paid in full will be collected in Annual hhstallments each year in the amounts shown in the Assessment Roll, which include interest on the outstanding Assessments and Annual Collection Costs. Payment or the Annuu] Installments shall commence with tax bills mailed in 2008, unless this Service and Assessment Plan and the Assessment Rall have terminated. Each Assessment shall bear interest of no more than the lesser of (i) the actual interest rate paid on the Bonds and (ii) seven percent per annum. The Assessment Roll sets forth for each year the Annual Installment for each Parcel based on an estimated interest rate of 6.25%. The actual interest on the Bonds may be different than the interest rate estimated in the Assessment Roll, but may not exceed 7.0%. Purihemrme, the Annual Installments may not exceed the amounts shown on the Assessment Roll. The Assessment Roll shall be updated once the interest rate is known on the Bunds to reflect the actual interest rate. Since the Annual Installments shown on the Assessment Roll may oat be exceeded, an interest rale on the Bonds higher than 6.25% will require the Assessments to be reduced to an amount Ihnt may be repaid from tie Annual Installments shown on the Assessment Roll and the actual interest rate to be paid on the Bonds. The Annual Installments shall be reduced to equal the actual costs of repaying the Bonds and nctual Annual Collection Costs (as provided for in the definition of such temr), laking into consideration any other available funds for these costs. such as interest income on account balances. T. Collection of Annual Installments No less frequently than annually, the Administrator shall prepare, and die Town Council shall approve, on Annual Service Plan Update to allow for the billing and collection of Annual 18 210 Section VII TEL ASSESSMENT ROLL Each Parcel has been evaluated by the Town Council (based on the Planned Development Ordinance, developable area, proposed Owner Association Property and Public Property, the Authorized Improvements, best and highest use or land, and other development factors deemed relevant by the Town Council) to determine, by Lot Type. the number of dwelling units thud are anticipated to be developed within the Parcel. Each dwelling unit is then multiplied by the applicable amount per dwelling unit set forth in last column of Table V -B of tris Service and Assessment Plan, and die total of such amounts for all dwelling units within the Parcel shall constitute the "Assessment" for the Parcel set forth on the Assessment Roll. The Assessment Rall shall be updated upon the preparation of each Annual Service Plan Update to milcct, for each Parcel, subdivisions, consolidations, prepayments, and reductions authorized by this Service and Assessment Plan. The Administrator shall prepare, and the Town Council shall review and approve, annual updates to the Assessment Roll in conjunction with the Annual Service Plan Update to reflect the following matters, together with any other changes helpful to the Administrator or the Town and permitted by the Act: (i) the identification of ench Parcel; (ii) the Assessment for each Parcel, including any adjustments authorized by this Service and Assessment Plan or in the Act; (iii) the Annual Installment for the Parcel for the year (if the Assessment is payable in installments); and (iv) payments of the Assessment, if any, as provided by Section VLC of this Service and Assessment Plan. Once Bonds are issued, the Assessment Roll shall be updated, which update may be done in tie next Annual Service Plan Update, to reflect any changes resulting from the issuance of the Bonds. This update shall reflect the actual interest on the Bands at which the Annual Installments shall he paid, env reduction in the Assessments, changes to the Maximum Assessments, and any revisions in the Costs to be funded by the Bonds and Developer funds. 20 212 E. Severnbility If any provision, section, subsection, sentence, clause or phrase of this Service and Assessment Plan, or the application of same to an Assessed Parcel or any person or set of circumstances is for any reason held to be unconstitutional, void or invalid, the validity of the remaining portions of this Service and Assessment Plan or the application to other persons or sets of circumstances shall not be affected thereby, it being the intent of the'rown Council in adopting Us Service and Assessment Plan that no part hereof, or provision or regulation contained herein shall become inoperative or fail by reason of any unconstitutionality, voidness or invalidity of any other part hereof. and all provisions of this Serviec and Assessment Plan are declared to be severable for that purpose. If any provision of Ibis Service and Assessment Plan is determined by a court to be unenforceable, the unenforceable provision shall be deleted from this Service and Assessment Plan and the unenforceable provision shall, to die extent possible, be rewritten to be enforceable and to give effect to the intent of the Town. 22 214 Ezbibit B -I ESTMATED PID COSTS 216 Exhibit C DIAGRAM OF THE AUTHORIZED IMPROVEMENTS 218 Assessment Roll The llighlands of Trophy Club Public Improvement District Town of Trophy Club, Texas Tnx Parcel Assessment R305643 $1,646,614.00 R73937 $1,150,817.00 R133131 $21,193.00 R171502 $31,193.00 R312617 $254,312.00 8312619 $932,478.00 R312675 $197, 137.00 R313701 $21,19300 R313702 $0.00 R313706 $63,578.00 R313711 $84,771.00 R313720 $63,578.00 R68393 $0.00 R171480 $722,783.00 R171482 $0.00 R171484 $0.00 R171503 $1,206,867.00 8312605 $ t,370,831.00 R312606 $645,819.00 8312607 $0.00 884843 $55,770.00 R99641 $713,858.00 12171483 $665,896.00 R67687 $O.Ou 898639 $3,796,833.00 R307362 $3,902,003.00 R307365 $3,647,928.00 R171478 $7,31460.00 R313722 $0.00 R313723 $0.00 Total $27,500,000.00 OW�i Assessment Roll The Highlands at Trophy Club Public Improvement District Town of Trophy Club, Terns Tax Parcel 8305643 Assesmenl S 1,696,614.00 Annual Installment Per Lot Assessment Roll 222 Principal Collection Year and Interest Casts Total 1 $106.178.71 52,395.07 $108,573.79 2 $107,771.39 S2,431.00 S110203.39 3 5109.387.96 52.467.46 $111,855.42 4 SI 11,038.78 S2,504.47 S113,533.25 5 5113,694:! 1 52._542.04 $115,23625 6 5114.384.63 $2580.17 $116,964.80 7 $116.100.110 52,618.87 5118.71927 8 5117,841.90 S2,658.16 5130,500.06 9 $119,609.53 S2,698M $122,307.56 10 5131,403.67 53,738.50 5124,14217 11 S123,224.73 52,779.58 5126,004.30 12 5135.073.10 52,83127 5137,894.37 13 $126,949.20 $2,863.59 $139,813.78 14 5138,853.43 - —S2;90654 5131,759.98 1.5 5130.78623 52,950.14 5133,736.38 16 $133.748.03 53,994.39 5135,742.42 17 $134,739.25 53,039.31 $137,77856 IS $136,760.34 53,081.90 S139,845_34 19 $138,811.74 53,131.17 5141,94291 20 $140.893.93 53,178.14 5144,073.06 21 5143.007.33 53225.81 SI46.233.14 22 51.15.152.44 53.37420 5148,436.64 23 5147.339.72 53223.31 5150,653.04 24 $749.539.67 53.373.16 5153.91'_.83 25 5151.783.76 53,423.16 5155 206.52 36 $154.059.51 53,475.13 5157,534.63 27 5156.370.40 53537.24 5159,897.64 2II 5158.715.95 53,5S0.15 $163,296.11 39 $161.096.69 53,633.85 5164,730.55 30 $163513.14 53.688.36 5167,20151 Tom] 53,985.808.76 SS9907.77 54,075,716.54 Assessment Roll 222 Town nrTrnphy Club, Texas Tux Parcel Assessment 12133131 $21.193.00 Assessment Roll Tle Highlands at Trophy Club Public Improvement District Town nr'l'ropbp Club, Texas 224 Annual Installment Per Lot Annual Principal Collection Year and Interest Costs Total 1 $1,366.59 $30.83 $1,397.42 2 $1387.09 $3129 $1,418.38 3 $1,407.90 $31.76 51,439.66 4 S1,429.01 53224 51;161.25 5 $1,450.45 532.72 51,483.17 6 $1.47221 $3321 $1,505.42 7 $1,49429 .$33.71 $1,528.00 8 51,516.70 53422 $1,550.92 9 S1,539A5 $34.73 $1,574.18 10 51.56235 535.25 51,597.80 11 51.595.98 $35.78 $1,621-76 12 51,60277 $36.32 51,646.09 13 $1,633.92 $36.86 $1,670.78 14 $1,658.43 $37.41 51,695.84 15 5IM3.31 537.98 S1,72128 16 $1,708.55 538.54 $1,747-10 17 51,734.18 $39.12 $1,773.31 18 51.760.20 $39.71 51,799.91 19 S1,786.60 .$40-31 $1,826.90 20 S1,813.40 .510.91 51,854.31 21 S1,840.60 541-52 51.882.12 22 51,868.21 542.15 51,910.35 23 51,896.23 $42-78 $1,939.01 24 51,924.67 $43.42 $1,968.09 25 $1,953.54 $411.07 51,997.62 26 51,982.85 SIH.73 52.027.58 27 52,012.59 $45.40 52,057.99 28 52,042.78 546.08 .52,088.86 29 52,07342 546.73 52,12020 30 52,104.52 547.48 $2,152.00 Twat S511299.99 St.157.32 552,457.30 Assessment Roll Tle Highlands at Trophy Club Public Improvement District Town nr'l'ropbp Club, Texas 224 Tax Parcel 8112617 Assessment S254,312.00 .Assessment hall The Highlands at Trophy Club Public Improvement District Town of Trophy Club, Terns Tax Parcel 12312619 226 Annual Installment Per Lou Annual Principal Collection Year and Interest Casts Total 1 $16398.82 $369.91 $16.768]2 2 $16.644.50 5375.46 $17,02026 3 516,594.47 5381.09 517,275.56 4 $17,147.89 5386.81 517,534.70 5 $17,405.11 5392.61 S17,797J2 6 $17,666.19 S398.50 $18,064.65 7 517,931.18 $404A5 $18335.65 8 518100.15 $41054 $18,610.69 9 515,473.15 5416.70 $18.889.85 10 $18,75025 5422.95 $19.17320 11 $19,031.50 5429.30 $19,460.80 12 $19,31(;.97 5435.74 $19.757.71 13 ,$19,60613 544227 520.049.00 14 $19,900.83 $448.91 $10,349.73 15 520.199.34 $455.64 $20.654.98 16 $20,502-33 $462.47 $20,964.80 17 $20,809.87 5469.41 $2127925 18 521,122.01 5476.45 $21.598.47 19 521;438.84 5483.60 $21,922.44 20 521,760.43 5490.85 52225128 21 S21080.83 $4952 522,585.05 22 $22.418.111 $505.69 522,923.82 23 $22,754.41 .$51327 523267.65 24 $23,095.72 $520.97 S23,616.70 25 523,442.16 5528.79 523,970.95 26 523,793.79 $536.72 524.330.51 27 $24,150.70 $514.77 $24,695.47 25 $24,51196 555294 $25,065.90 29 $24,850.65 556124 525,441.89 30 525,253.86 S569.65 525.82352 Total $615,590.08 $13,585.93 $629,476.00 .Assessment hall The Highlands at Trophy Club Public Improvement District Town of Trophy Club, Terns Tax Parcel 12312619 226 Assessntont 5197;437.00 Assessment Roll Tht Ilighlands in Trophy Club Public Improrcmeni District Town of Trophy Club, Texas Tai Parcel Assessment 8313701 $21.193.00 228 Annual Installment Per Lot Annual Principal Collection Year and Interest Costs Total 1 512.730.70 S287.17 513,017.86 2 .S12,921.66 5291.48 513.213.14 3 513,115.49 $295.85 513,411.34 4 $13,31222 530029 313.61251 5 $13,51190 5304.79 S13,816.69 6 $13,714,58 $309.36 S14,023.94 7 $13,920.30 $314.00 314.234.30 8 314,129.10 $318.71 $14,447.82 9 $14,341.04 5323.49 $14,66453 l0 $14,556.15 $328.35 $14,984.50 11 514,774.50 5333.27 $15.107.77 12 $14.996.11 533827 %15,334.39 13 $15_21.06 5343.35 $15,564.40 14 $15,449.37 5348.50 515,797.87 15 $15,681.11 $353.72 516,034.89 16 $15,916.33 5359.03 $16,275.36 17 $16.15507 $364.41 516,519.49 IS 116,397.40 $369.88 516,767.26 19 116,643.36 $375.43 517,018.79 20 516,893.01 $381.06 $17,274.07 21 $17,146.41 $386.76 517,533.18 70 S17,403.60 539258 517,796.18 23 517.664.66 $398.47 518,063.12 24 S17,929.63 5404.44 $1R 134.07 25 $18.198.57 $410.51 $16,609.06 26 $16,471.55 $416.67 $18,888.22 27 $18,746.62 $422.92 519.171.54 28 $19,029.85 $429.26 519.459.11 29 $19.315.30 $435.70 519.751.00 30 $19,605.03 5442.24 520.047.27 Total $477,693.69 $10,779.98 5488,673.66 Assessment Roll Tht Ilighlands in Trophy Club Public Improrcmeni District Town of Trophy Club, Texas Tai Parcel Assessment 8313701 $21.193.00 228 Annual lnstnilment Per Lot Tax Parccl Assessment Assessnent Roll The Highlands at Trophy Club Public Impruvemunl District Town of Trophy Club, Texas Annual Installment Per Lot Rtl37ub $63,579.00 230 Principal Cullecuun Year and Interest Costs Total 1 50.00 $0.00 30.00 2 $0.00 $0.00 $0.011 3 $0.00 $0.00 $0.00 4 S0.00 50.00 $0.00 s $0.00 50.00 $0.00 b $0.00 $0.00 $0.00 7 $0.00 30.00 $0.00 s 50.00 $0.00 $0.00 9 $0.00 $0.00 $0.00 10 $0.00 $0.00 $0.00 II $0.00 $0.00 $0.00 12 $0.00 sa.a0 $0.00 13 60.00 $090 $0.00 Id 50.00 50.00 $0.00 15 50.00 50.00 $0.00 16 S0.00 50.00 $0.00 17 Sam 50.00 50.00 is 50.IID 50.00 30.00 19 $0.00 50.00 $0.00 20 $0.00 $0.00 $0.00 21 $O.W 511.00 50.00 22 $0.00 $0.00 $0.00 23 $0.00 50.00 $0.00 24 30.00 $0.00 $090 25 50.00 SO90 $0.00 26 50.00 30.00 $0.00 27 $0.00 30.00 $0.00 28 $0.00 50.00 $0.00 29 S0.00 $0.00 $0.00 70 50.00 $0.00 $0.00 Total 50-00 $0.00 $0.00 Tax Parccl Assessment Assessnent Roll The Highlands at Trophy Club Public Impruvemunl District Town of Trophy Club, Texas Annual Installment Per Lot Rtl37ub $63,579.00 230 AmmsmcnL Roll The Highlands at Trophy Club Public Improvement District Toren of Trophy Club, Texas Tax Parcel Assessment R313711 $84,771.00 Assessment Roll 232 Annual Installment Per Lot Annual Principal Collection Year and Interest Costs Total I S5A66.29 512330 $5589.60 2 $5.548.28 S125.15 55,673.43 3 $5,631.51 5127.03 $5,758.54 4 $5,715.96 5128.93 55,844.91 5 $5,801.72 $130.87 $5.932.59 6 S5.896.75 $132.83 56.02158 7 $5,977.08 5134.82 $6,111.90 8 S6,066.73 $136.811 .$6,203.56 9 $6,157.74 $138.90 $6,296.63 10 56:250,10 $140.98 $6,391.08 11 S6,343.65 $143.09 $6,486.95 12 S6,439.01 $145.24 S6584.25 13 S6,535.60 .$147.42 56,683.02 14 56,633.63 5149.63 56,763.36 15 $6,733.13 S15 LBB 56365.01 16 $6,834.13 S154.15 56,988.28 17 $6,936.64 S156.47 57,093.11 18 S7,040.69 5158.81 57.199.51 19 $7,14630 $161:20 $7,307.50 20 $7,253.50 $163.61 $7,417.11 21 57,36230 $166.07 $7,528.37 22 .57,472.73 $168.56 $7,64129 23 57584.63 5171.09 57,755.91 24 $7.698.60 $173.65 $7,872.25 25 $7,814.08 $176.26 $7,990.33 26 S57,931.29 5176.90 $6,110.19 27 $9,050.26 5181.59 S8.23 1. 84 28 56,171.01 5164.31 $8,355.32 29 $8,293.56 S187.07 .58.480.65 30 $8:11796 $189.88 58,607.86 Total $205,197.32 54,628.52 $209.825.65 Assessment Roll 232 Town nfTrophy Club, Tey:u Tay Par cul 1165393 Assessment 50.00 Annual Installment Per Lot Annual Assessment Roll The Ili; Wands it Trophy Club Public Imprnremenl District Town of Trophy Club, Texas 234 Principal Collection Year and lntemst Costs Total I 50.00 SO.00 5090 2 $0.00 50.00 SO.00 3 $0.00 50.00 S13.1313 4 50.00 $0.00 50.00 5 $0.00 50.00 $0.00 6 $0.00 50.00 $0.00 7 50.00 SOLO $0.00 5 SO.00 $0.00 $0.00 9 S0L0 $0.00 $0.00 10 $0.00 50.00 $0.00 I 50.00 $0.00 50.00 12 SO.00 $0.00 $0.00 13 SOLO $0.00 SO.00 14 S0.00 $0.00 $0.00 15 50.00 SOLO $0.00 16 SO.00 .$13.00 $0.00 17 $0.00 $0.00 50.00 1S $0.00 50.00 $0.00 L9 $0.00 50.00 50.00 20 $0.00 50.00 513.130 21 $0.00 SO.00 50.00 22 $0.00 50.00 $0.00 23 50.00 50.00 60.00 24 50.00 50.00 50.00 25 SOM SO.00 SOM 26 50.00 $0.00 $090 27 SOAO $0.00 SO.00 25 50.00 $0.00 $0.00 29 50.00 $0.00 $0.00 30 $0.00 SOLO $0.00 Total 50.00 $0.00 50,00 Assessment Roll The Ili; Wands it Trophy Club Public Imprnremenl District Town of Trophy Club, Texas 234 Tax Parcel R171482 Assessment Soma Assessment Roll The Highlands of Trophy Club Public Lnprm'ement District Town or Trophy Club,'1'exas Tac Parcel 236 Annual installment Per Lot Annual Principal Colleedon Year and Interest Costs Total 1 Soto Soto Soto 2 SOLO Soto 50.00 3 SOLO Soto Soto 4 SOLO Sato Soto 5 SOLO SOLO Soto 6 soma $0.00 50.00 7 Soto Soto SOLD 8 Soto stop Soto 9 Foto $010 $400 to Soto $O.Oo SOLO I1 Soto $Too Soto 12 $010 Soto Soto 13 Soto Soto Soto 14 Soto Soto Soto 15 soma sato SOLD 16 soma Soto Saba 17 $OLO SOLO Soto 18 Soto Soto soma 19 $010 Soon SOLO 20 $oto $Oto $0.00 21 Soto soma SOLO 12 SOLO SOLO Soto 23 Soto Soto $0.00 24 Soto $000 30.00 25 $010 $010 $100 26 Soto Soto 50.00 27 Soto $OLO 50.00 28 Soto Soto 50.00 29 Soto Soto S0.00 30 Soma Sato Soto Total SOTO 50.00 30.00 Assessment Roll The Highlands of Trophy Club Public Lnprm'ement District Town or Trophy Club,'1'exas Tac Parcel 236 Assessment $1;206,867.00 Assessment Rall The Highlands it Trophy Club Public Improvement District Town of Trophy Club, Texas Tax Parcel R312605 Asscasmenl $1,370,831.00 238 Annuni Installment Per Lot Annual Principnl Collection Year and Interest C05B Total 1 S77,82248 51.755.44 $79.577.92 2 $78.989.82 51.781.77 $90,771.59 3 560.174.66 51.608.50 $91,983.16 4 $81.377.28 $1,635.63 583,112.91 5 $82.597.94 $1,663.16 564.461.10 6 $83.836.91 $1,891.11 $85.728.02 7 565,094.47 $1.919-47 387.013.94 8 $96.370.88 51,948.27 568,319.15 9 S87,66GA5 SI.977.49 $89,643.94 10 $88,9111.14 52.007.15 $90,986.60 11 $90,316.17 52,037.26 $92,353.42 12 891,670.91 $2.067.82 $93,738.73 13 $93,045.97 S2,098.84 395,144.61 14 S94,441.66 52,13032 596,571.96 15 $95,856.39 52,16227 596,020.56 16 397,296.16 $2,194.71 599,490.87 17 $96,755.60 52227.63 S100,98323 16 W0236.94 $2261.04 5102,49798 19 $101.740.49 52,294.96 $104,035.45 20 5103.266.60 52,329.38 5105,595.98 21 5104,815.60 .52,364.32 $107,179.93 22 5106,387.83 .$2399.79 $106,787.62 23 5107,98365 52,435.78 5110,419:13 24 5109,603.40 $2,47232 5112,075.72 25 5111,247.45 S2i09A1 $113,756.66 26 5112,916.17 $2,547.05 $115,46321 27 5114,60991 S158525 5717,195.16 26 $116,329.06 52,624.03 $116,953.09 29 $118,073.99 $166339 5120.737.39 30 $119,845.10 52,703.34 S122i48.45 Total 52,921.353.28 $65,896.90 $2,967,250.16 Assessment Rall The Highlands it Trophy Club Public Improvement District Town of Trophy Club, Texas Tax Parcel R312605 Asscasmenl $1,370,831.00 238 Assessment Rall The 111ghlnn is at Trophy Club Public Improvement District Town ourropby Club, Tcans 'rax Parcel 13312607 Assessment 50.00 Annual hstanment Per Lot 240 Annual Installment Per Lot Annual Principal Collection Year and Interest Costs Total 1 $41,64439 $939.37 542,583.76 2 $42,269.06 $953.46 543,22252 3 542,903.09 $967.76 543,870.85 4 543,546.64 $982.28 544,528.92 5 544,199.84 $997.01 545,196.85 6 S44,862.84 $1,011.97 $45,874.80 7 S45,535.78 51,027.15 546,562.93 8 546,218.81 51,042.56 $47,261.37 9 S46,912.10 $1,058.19 $47,970.29 10 $47,615.78 $1.074.07 $48,689.84 11 $48,330.01 51,090.18 $49,420.19 12 $49.054.96 51,10653 550,161.49 13 $+9,790.79 51,123.13 550,913.92 14 $50-137.65 51,139.97 551,677.63 l5 $51,295.72 51,157.07 .152,452.79 16 S52,065.15 $1.174.43 $53,239.58 17 552,946.13 $t, 192.05 554.038.18 18 $53,638.82 51209.93 $54,848.75 19 $54,443.40 51,228.08 555.671.48 20 $55,260.05 S1246.50 $56,506.55 21 556,088.96 51 _65.20 $57,354.15 S56,930.29 51284.17 $58,214.46 23 557.784.24 51,303.44 559,087.68 24 558,651.01 51,322.99 559,973.99 25 $59,530.77 51,342.83 560,873.60 26 $60,423.73 $1,362.97 S61.786.71 27 $61,330.09 $1383.42 562,71351 28 $620.04 $1.404.17 563,654.21 29 $63,183.79 $1,425.23 $64,609-03 30 $64,13155 $1,446.61 565,573.16 Total 51,563275.49 S35,262.7t SI.598,533.20 Assessment Rall The 111ghlnn is at Trophy Club Public Improvement District Town ourropby Club, Tcans 'rax Parcel 13312607 Assessment 50.00 Annual hstanment Per Lot 240 Assmauent Bull The highlands sit Trophy Club Public Improvement District Town of Trophy Club, Terns Tax Parcd Asscssmcnt RS4843 $55,770.00 Assessment Roll 242 Amoral Installment Per Lot .�"mual Principal Collecliun Year and lntemsl Cons Total I 53,596.227 561.12 33,677.34 2 $3,650.16 $8234 $3.73150 3 $3,704.92 563.57 53.788.49 4 $3,760.49 $64.83 53,845,31 5 $3,816.90 $66.10 53,902.99 6 $3,674.15 $6739 53,96154 7 53)3226 .588.70 S4,020.96 8 53.99125 $90.03 S4.08128 9 54,051.12 $9138 $4,14250 10 $4.111.88 592.75 54,104.63 11 $4,173.56 $94.1'1 $4,267.70 12 54.136.16 $95.56 $4,331.72 13 S4,299.71 $9699 $4,396.69 14 $4,364.20 $96.44 $4,46264 15 34,429.66 $99.92 :1,52958 16 54.496.11 5101,12 54,597.53 17 $4,563.55 $102.94 S4,666.49 I8 S4,632.00 5104:18 54,736.49 19 54,701.48 3106.05 54,807.51 2D $4,772.01 $107.6-1 54,879.65 21 $4,843.59 $10126 54,952.64 22 S4,91624 5110.90 S5,D27.14 23 $4,96996 511256 $5,102.54 24 55,064.83 $114.25 $5.179.08 25 $5,140.81 S115.96 $5,256.77 26 $5.217.92 5117.70 55,335.62 27 .5.5,296.19 5119.47 $5,415.65 28 $5975.63 $121.26 $5,496.89 29 55,456.26 $123.06 $5.579.34 30 $5,538.11 5124.93 $5.663.03 Total 5134,997,36 $3,045.11 $138,04249 Assessment Roll 242 Town of Trophy Cluh, Tczas Tac Parcel Assmment R171483 S665,89b.00 Assessment Boll The Highlands at Trophy Club Public Improvement District Town of Trophy Club, Texas `m, Annual Installment Per Lot Annual Principal Collection Year and Intcresl Costs Total 1 542,939.01 $968.58 543,907.59 2 $43,5B3.10 $981.11 $44.56620 3 544236.84 5997.86 545,234.70 4 54490039 51,012.82 S45,91322 5 545,573.90 51,028.02 546,601.92 6 $46,257.51 51,043.44 S47,300.94 7 $46,95137 51,059.09 5,18,010A6 8 547,655.64 51.074.97 $48.730.62 9 $98,370.48 51,091.10 $49,461.57 10 549.096.03 $1.107.46 $50203.50 II 549,832.47 51,124.48 $50,956.55 12 550,579.96 SI.140.94 551,720.90 13 551,338.66 51.158.05 554496.71 14 $52.108.74 $1,175.42 S3 284.16 15 $52,890.37 $1,193.05 554,083.43 16 $53.683.73 51210.95 $54,894.68 17 554,488.98 $1229.11 $55,718.10 l8 $55,306.32 81,247.55 S56,553.87 19 $56,135.91 5126626 S57.402.18 20 556.977.95 SI =85.26 $58,26321 21 557,632.62 51304.54 $59,137.16 21 $58.700.11 $1.324.10 $60,024.21 23 559,580.61 51,343.97 $60,924.58 24 $60,47432 51,364.13 $61,838.45 25 $61.381.44 $1,384.59 $62,766.02 26 S0,302.16 $1.405.36 $63,707.51 27 S63,236.69 S1,426.44 564,663.13 28 564,18524 $1,447.83 565.633.07 29 565,148.02 S1,469.55 566.617.57 30 $66,17524 $1.491.59 $67.616.83 Tmal 51.611,873.81 5M059.22 S1,640,233.03 Assessment Boll The Highlands at Trophy Club Public Improvement District Town of Trophy Club, Texas `m, Tax Parcel R98639 Assessment 53,796.833.00 Annual Installment Per Lot Asscsvncnl Roll The highlands or Trophy Club Putrlic Improvement District Town or Trophv Cluh, Texas Tox Parcel 8307362 246 Principal Collection Year and Interest Costs Total 1 $244,831.41 $5,522.67 S250,354.08 2 S248503.88 55,605.51 5254,109.39 3 S252231.44 .$5,689.59 5257,921.03 4 $236.014.91 55,774.94 5261,789.85 5 5239.855.13 55,861.56 $265,716.70 6 5263,752.96 55.949.46 S269,702.45 7 S267,709.26 S6,038.73 5273,747.98 S $271,724.89 56,129.31 $277.854.20 9 5275.800.77 56,221125 5262.022.02 10 5279.937.76 56,314.57 S286,252.35 II S284,136.85 $6,409.28 5290,546.13 12 $288398.90 56,505.42 5294.904.32 13 5292.724.86 $6,603.00 5299,327.89 14 5297,115.76 56,702.05 5303,817.81 l5 S301572.49 $6,802.58 5308.375.07 16 5306.096.06 $6,904.62 5313,000.70 17 5310.687.52 57,008.19 S317,695.71 18 $315,347.83 57,113.31 S322,461.14 0 5320.078.05 57,220.01 5327,298.06 20 S324.879.22 57,328.31 5332,20753 21 $329.752.41 S7,438.211 $337.190.65 22 $334,698.70 37,549.81 .5342248.51 23 S339,719.18 57,663.06 $347,36223 24 $344.814.96 S7,778.00 .$352,592.97 25 $349,987.19 57,894.67 .$357,881.86 26 S355,237.00 58.013.09 $363250.09 27 5360,565.55 58,133.29 5368,696.64 28 $365,974.04 58,255.29 5374,229.32 29 $'371,463.65 58,379.12 $379,842.76 30 $377,035.60 58,504.80 S385540.40 Total 59.190,64829 $207313.75 59.397,962.04 Asscsvncnl Roll The highlands or Trophy Club Putrlic Improvement District Town or Trophv Cluh, Texas Tox Parcel 8307362 246 Assesmient $3,647,928.00 Assessment Roll The highlands at Trophy Club Public hnprnvement District Town of Trophy Club, Taus Tax Parcel Assessment R 171478 S7.314 260.00 an. Annual Installment Per Lot Annual Principal Collection Year and Interest Costs Total 1 5235,229.56 S5,306.08 $240,535.64 2 $238,758.00 $5,385.67 $244,143.67 3 5242,339.37 $5,466.46 $247,805.63 4 $245,974.46 $5,548.45 $251,522.92 5 $249,664.06 $5,631.68 S255.295-76 6 $253,409.04 55,716,16 $259,125.20 7 $257,210.18 S3,801.90 5263,012.08 8 5261,068.33 S5,888.93 5266,95726 9 5264,964.36 55,977 26 $270,961.62 10 5268,959.12 $6,066.92 5275,026.04 11 S272,993.51 56,157.92 $279,151.43 12 S277,088.41 56.250.29 5263,338.70 13 S281244.74 56,344.05 $287,566.76 14 5265.463.41 $6,439.21 5291,902.6t 15 5269,745.36 $6,535.79 $296,261.15 16 5294,091.54 56,633.83 $300,725.37 17 S298,502.91 S6,733.34 $305,23625 18 S302,980.46 56,83434 5309,814.79 19 5307,525.16 56,936.85 5314,462.02 20 S312,138.04 57,040.91 5319,179.95 21 $316.820.11 57,146.52 $323,966.63 22 $321,572.41 S7,253.77 $326.826.13 23 5126396.00 57,362.52 $333,758.52 24 S331,291.94 57,472.96 5338,764.90 25 5336,261.32 $7,565.96 5343.846.37 26 534.1,305.24 $-7,698.63 5349,004.07 27 $346,4.24.82 57,814.31 $354,239.13 28 $351,621.19 $7,931.53 535955272 29 $356,895.51 $6,050.50 $364,946.01 30 .5362,246.94 58,17136 $370,420.20 Total 56,830307.50 $199,183.25 $9,029.390.75 Assessment Roll The highlands at Trophy Club Public hnprnvement District Town of Trophy Club, Taus Tax Parcel Assessment R 171478 S7.314 260.00 an. Assessment Rall The Highlands at Trophy Club Public Improvement District ,town of Trnphy Club, Texas Tux Parcel 8313723 Assessment 50.00 Annual Installment Par Let 250 Annual Installment Per Lot Annual Principal Collection Year and Interest Costs Total 1 $0.00 $0.00 SO.00 2 $0.00 $0.00 $0.00 3 SO.00 .$0.00 $0.00 4 $0.00 50.00 $0.00 5 $0.00 50.00 $0.00 6 50.00 $0.00 50.00 7 50.00 50.00 50.00 0 50.00 $0.00 50.00 9 $0.00 $0.00 10 SOLO $0.00 $0.00 11 $0.00 $0.00 .$0.00 12 50.00 $0.00 $0.00 13 SOM $0.00 50.00 1.1 $0.00 $0.00 50.00 is SO.00 $0.00 50.00 16 $0.00 SOHO $0.00 17 $0.00 SOLD $0.00 10 50.00 50.00 $0.00 19 50.00 50.00 $0.00 20 $0.00 50.00 $0.00 21 50.00 50.00 $0.00 22 SO.00 S0.00 $0.00 23 $0.00 $0.00 $0.00 24 50.00 $0.00 SOM 25 50.00 50.00 50.00 26 50.00 $0.00 S0.00 27 50.00 $0.00 $0.00 25 50.00 SO.Ou $0.00 29 $0.00 $0.00 MOO 30 $0.00 $0.00 $0.00 Total $0.00 SOHO 50.00 Assessment Rall The Highlands at Trophy Club Public Improvement District ,town of Trnphy Club, Texas Tux Parcel 8313723 Assessment 50.00 Annual Installment Par Let 250 Section II PROPERTY INCLUDED IN THE PID The Highlands of Trophy Club is located in the Town of Trophy Club, Texas, within Denton County, Texas. This planned development contains approximately 697 acres, of which approximately 610 acres is within the PID. The acreage within the planned development but not within the PID consist of approximately 49 acres of the development within Trophy Club Municipal District No.1 (MUD 1) and Trophy Club Municipal District No. 2 (MUD 2), approximately 14 acres of commercial uses, 21 acres used for gas well operations, and two acres within rights of way. A map of the property within the PID is shown on ExhibitAto this Service and Assessment Plan. At completion, the PID is expected to consist of approximately 1,474 residential units, two parks, entry monuments, and associated rights-of-way, landscaping, and infrastructure necessary to provide roadways, drainage, and utilities to the PID. For purposes of allocating the Assessments, the Assessed Property has been classified in one of five lot types. The following table shows the proposed residential lot types: The Table II -A Proposed Residential Lot Types Lot Type I Minimum Lot Area Number of Units Lot Type 1 12,000 SF 163 Lot Type 2 10,000 SF 508 Lot Type 3 8,400 SF 377 Lot Type 4 7,200 SF 177 Lot Type 5 3,000 SF 249 Total 1,474 estimated number of lots and the classification of each lot are based upon the Planned Development Ordinance and the Developer's estimated highest and best use of the property within the PID. 252 health and sanitation, water and wastewater, public safety, security, business recruitment, development, recreation, and cultural enhancement; and (xiv) payment of expenses incurred in the establishment, administration and operation of the district. After analyzing the public improvement projects authorized by the PID Act, the Town has determined that the Authorized Improvements should be undertaken by the Town. The estimated total Costs to construct the Authorized Improvements are shown by Table III -A (and more fully shown in Appendix B-1). Table 111-A Estimated Costs to Construct the Authorized Improvements I Authorized Improvements Estimated Cost Northwest Parkway improvements, intersection $3,808,516.41 improvements, and Trophy Club Drive improvements south of Northwest Parkway Trophy Club Drive improvements other than south of $3,794,483.59 Northwest Parkway Water distribution system (not including elevated $ water tank) 1,290,000 Elevated water tank $1,200,000 Wastewater collection system $915,000 Trail system and open space $1,064,540 Thoroughfare streetscape, median landscaping, $2,280,000 sidewalks, irrigation and irrigation well. Screening walls and neighborhood entry features $700,000 Northeast and Northwest parks $5,175,000 Park drainage improvements $974,000 Construction administration and management $50,000 ontingency $1,187,437 Total estimated cost of Authorized Improvements $22,438,977 The Authorized Improvements benefit property inside and outside the PID. Accordingly, the Costs of these improvements must be allocated between property inside the PID 254 Table 111-B PID Costs Northwest Parkway improvements, intersection $3,046,144 improvements, and Trophy Club Drive improvements south of Northwest Parkway Trophy Club Drive improvements other than south of $3,794,484 Northwest Parkway Water distribution system (not including elevated water tank) $1,148,100 Elevated water tank $960,000 Wastewater collection system $796,050 Trail system and open space $1,011,039 Thoroughfare streetscape, median landscaping, sidewalks, irrigation and irrigation well. $1,916,746 Screening walls and neighborhood entry features $700,000 Northeast and Northwest parks $4,914,916 Park drainage improvements $925,049 Construction administration and management $50,000 :)ntingency $1,187,437 Estimated PID Costs $20,449,965 A discussion of the bonded indebtedness expected to be incurred to fund the PID Costs set forth in Table III -B is included in Section IV of this Service and Assessment Plan. The costs shown in Table III -B are estimates and may be revised in Annual Service Plan Updates. Savings from one line item may be applied to a cost increase in another line item. These transfers, however, are limited to the portion of the savings related to the PID's share of the costs, and these savings may be applied only to the PID's share of the increase in the costs of another line item. 256 Authorized Improvements if the amounts specified above are not sufficient to complete such improvements. The annual projected costs and annual projected indebtedness is shown by Table IV -B. The annual projected costs and indebtedness is subject to revision and shall be updated each in the Annual Service Plan Update to reflect any changes in the costs or indebtedness expected for each year. Table IV -B Annual Proiected Costs and Indebtedness Year Annual Annual Projected Projected Costs Indebtednes s 2007 $27,500,000 $27,500,000 2008 $0 $0 2009 $0 $0 2010 $0 $0 2011 $0 $0 Total $27,500,000 $27,500,000 258 Property as described in this Service and Assessment Plan and as required by the Planned Development Ordinance will require that Authorized Improvements be acquired, constructed, installed, and improved. Funding the PID Costs through the PID is determined to be the most beneficial means of doing so. As a result, the Assessments result in a special benefit to the Assessed Property, and this special benefit exceeds the amount of the Assessments. This conclusion is based on and supported by the evidence, information, and testimony provided to the Town Council. C. Allocation of Costs to the PID The Authorized Improvements will provide a special benefit to the property inside and outside the PID. Accordingly, the Costs of the Authorized Improvements must be allocated between the property inside the PID and outside of the PID (i.e., to the Town). The Developer has agreed to pay all costs of the Authorized Improvements allocated to the Town. The allocation of these costs is shown in Appendix B-2 and summarized as follows: Thoroughfare improvements — A portion of the thoroughfare improvements provides access to property outside the PID, therefore the costs of these improvements are allocated on the basis of estimated trips from property inside and outside the PID. The trips from the property in the PID are estimated to represent 80% of the total trips. Accordingly, 80% of the costs of these improvements are allocated to the PID with the balance allocated to the Town. A portion of the thoroughfare improvements to Trophy Club Drive provide access only to property in the PID; therefore, the improvements are allocated entirely to the PID. Water distribution system — The costs of the water distribution system are allocated on the basis of gallons per day of estimated use by property inside and outside the PID. This allocation results in 89% of the costs of the water distribution system being allocated to the PID with the balance being allocated to the Town (note: commercial property in the development uses less water compared to trips generated, which results in the higher allocation of water improvements compared to thoroughfare improvements). Elevated water tank — The costs of the elevated water tank are allocated on the basis of the estimated storage requirements, including storage requirements for average daily use and fire protection, for property inside the PID and other property not in the PID but served by the elevated water tank. This allocation results in 80% of these costs being allocated to the PID with the balance being allocated to the Town. Wastewater collection system — The costs of the wastewater collection system are allocated on the basis of the total estimated sewage generated from property inside the PID and other property not in the PID but served by these improvements. This allocation results in 87% of these costs being allocated to the PID with the balance allocated to the Town. .0 assessed using any methodology that results in the imposition of equal shares of the PID Costs on Assessed Property similarly benefited. 2. For purposes of this Service and Assessment Plan, the Town Council has determined that the PID Costs shall be allocated to the Assessed Property on the basis of the relative value of Parcels after undertaking the Authorized Improvements and that such method of allocation will result in the imposition of equal shares of the PID Costs on Parcels similarly benefited. In determining the relative value of Parcels, the Town Council has taken into consideration (i) the type of residential development (i.e., single- family, duplex, or multi -family); (ii) single-family lot size and the size of homes likely to be built on lots of different size; (iii) current and projected home prices; (iv) the Authorized Improvements to be provided and the PID Costs, and (v) the ability of different property types to utilize and benefit from the improvements. In determining the ability of different property types to utilize and benefit from the improvements, the Town Council has taken into consideration independent studies supporting the conclusion that larger, more expensive homes, on average, will create more vehicle trips and greater demands for water and wastewater consumption, and larger, more expensive homes are likely to be built on larger lots. For example, the Arizona Department of Transportation conducted a study (described in Development and Application of Trip Generation Rates) on the relationship between property values and trip generation rates of residential property. This study examined residential communities in Delaware, Wisconsin, Ohio, and several other states. The study demonstrated a relationship between property value and trip generation rates, with more expensive homes having higher trip generation rates than less expensive homes. 3. Having taken into consideration the matters described above, the Town Council has determined that allocating the PID Costs among Parcels based on value after constructing the Authorized Improvements is best accomplished (and most easily illustrated) by creating classifications of benefited Parcels based on the "Lot Types' defined in Section LB of this Service and Assessment Plan. These classifications (from Lot Type 1 representing the highest value to Lot Type 5 representing the lowest value) is set forth in Table V-A below. This table illustrates that the Town Council has determined that a Lot Type 1 dwelling unit receives the greatest benefit from the Authorized Improvements, which benefit is given an "Equivalent Unit' value of 1.0 per dwelling unit. The Town Council has determined that a Lot Type 2 dwelling unit receives a smaller benefit; namely, 76% of the benefit received by a Type 1 Lot dwelling unit (hence the Equivalent Unit value of 0.76 per dwelling unit). This table illustrates that the Town Council has determined that a Lot Type 3 dwelling unit receives an even smaller benefit; namely, 62% of the benefit received by a Type 1 dwelling unit (hence the Equivalent Unit value of 0.62 per dwelling unit). The table further illustrates that the Town Council has made similar determinations with respect to all of the Lot Types. 262 4. The following table (Table V -B) shows the calculation of the Assessment per Equivalent Unit. There are a total of 986.19 Equivalent Units in the PID. The total Assessments are equal to $27,500,000, resulting in an Assessment per Equivalent Unit of $27,885.08. TABLE V -B Assessment Per Equivalent Unit Lot Type Equivalent Units Total Number of Dwelling Units Total Equivalent Units Lot Type 1 1.00 per 163 dwelling units 163.00 dwelling Lot Type 2 0.76 per 508 dwelling units 386.08 dwelling unit Lot Type 3 0.62 per 377 dwelling 233.74 dwelling unit units Lot Type 4 0.53 per 177 dwelling 93.81 dwelling unit units Lot Type 5 0.44 per 249 dwelling units 109.56 dwelling unit Total Equivalent 986.19 Units Total Assessments $27,500,000 Assessment Per $27,885.08 Equivalent Unit 5. The Assessment per dwelling unit is calculated as the product of (i) $27,885.08 multiplied by (ii) the applicable Equivalent Unit value for each Lot Type. For example, the Assessment for a Lot Type 1 dwelling unit is $27,885.08 ($27,885.08 x 1.0). The Assessment for a Lot Type 2 dwelling unit is $21,192.68 ($27,885.08 x 0.76). Table V- C sets forth the Assessment per dwelling unit for each of the five Lot Types. 264 B = the Assessment for the Parcel prior to subdivision. C = the Equivalent Units allocated to each newly subdivided Parcel D = the sum of the Equivalent Units for all of the new subdivided Parcels The calculation of the Equivalent Units as to a Parcel shall be performed by the Administrator and confirmed by the Town Council based on the information available regarding the use of the Parcel. The estimate as confirmed shall be conclusive. The number of units to be built on a Parcel may be estimated by net land area and reasonable density ratios. Lot type shall be determined by the description that is most similar to the lots being classified. The sum of the Assessments for all newly subdivided Parcels shall equal the Assessment for the Parcel prior to subdivision. The calculation shall be made separately for each newly subdivided Parcel. The reallocation of an Assessment for a Parcel that is a homestead under Texas law may not exceed the Assessment prior to the reallocation. Any reallocation pursuant to this section shall be reflected in an update to this Service and Assessment Plan approved by the Town Council. 2. Upon Consolidation Upon the consolidation of two or more Parcels, the Assessment for the consolidated Parcel shall be the sum of the Assessments for the Parcels prior to consolidation. The reallocation of an Assessment for a Parcel that is a homestead under Texas law may not exceed the Assessment prior to the reallocation. Any reallocation pursuant to this section shall be calculated by the Administrator and reflected in an update to this Service and Assessment Plan approved by the Town Council. C. Mandatory Prepayment of Assessments 1. If at any time the Assessment on a Parcel exceeds the Maximum Assessment calculated for the Parcel as a result of any reallocation of an Assessment authorized by this Service and Assessment Plan and initiated by the owner of the Parcel, then such owner shall pay to the Town prior to the recordation of the document subdividing the Parcel the amount calculated by the Administrator by which the Assessment for the Parcel exceeds the Maximum Assessment for the Parcel. The Town shall not approve the recordation of a plat or other document subdividing a Parcel without a letter from the Administrator either (a) confirming that the Assessment for any new Parcel created by the subdivision will not exceed the Maximum Assessment for each Parcel, or (b) confirming the payment of the Assessments, plus all Prepayment Costs, as provided for herein. 2. If a Parcel or portion thereof is transferred to a party that is exempt from the payment of the Assessment under applicable law, or if an owner causes a Parcel or portion thereof to become Non -Benefited Property, the owner of such Parcel or portion 266 Parcel, the Assessment for the Parcel shall be reduced, the Assessment Roll shall be updated to reflect such partial payment, and the obligation to pay the Annual Installment for such Parcel shall be reduced to the extent the partial payment is made. 2. Payment in Annual Installments The Act provides that an Assessment for a Parcel may be paid in full at any time. If not paid in full, the Act authorizes the Town to collect interest and collection costs on the outstanding Assessment. An Assessment for a Parcel that is not paid in full will be collected in Annual Installments each year in the amounts shown in the Assessment Roll, which include interest on the outstanding Assessments and Annual Collection Costs. Payment of the Annual Installments shall commence with tax bills mailed in 2008, unless this Service and Assessment Plan and the Assessment Roll have terminated. Each Assessment shall bear interest of no more than the lesser of (i) the actual interest rate paid on the Bonds and (ii) seven percent per annum. The Assessment Roll sets forth for each year the Annual Installment for each Parcel based on an estimated interest rate of 6.25%. The actual interest on the Bonds may be different than the interest rate estimated in the Assessment Roll, but may not exceed 7.0%. Furthermore, the Annual Installments may not exceed the amounts shown on the Assessment Roll. The Assessment Roll shall be updated once the interest rate is known on the Bonds to reflect the actual interest rate. Since the Annual Installments shown on the Assessment Roll may not be exceeded, an interest rate on the Bonds higher than 6.25% will require the Assessments to be reduced to an amount that may be repaid from the Annual Installments shown on the Assessment Roll and the actual interest rate to be paid on the Bonds. The Annual Installments shall be reduced to equal the actual costs of repaying the Bonds and actual Annual Collection Costs (as provided for in the definition of such term), taking into consideration any other available funds for these costs, such as interest income on account balances. F. Collection of Annual Installments No less frequently than annually, the Administrator shall prepare, and the Town Council shall approve, an Annual Service Plan Update to allow for the billing and collection of Annual Installments. Each Annual Service Plan Update shall include an updated Assessment Roll and a calculation of the Annual Installment for each Parcel. Annual Collection Costs shall be allocated among Parcels in proportion to the amount of the Annual Installments for the Parcels. Each Annual Installment shall be reduced by any credits applied under the applicable Bond Indenture, such as capitalized interest, interest earnings on any account balances, and any other funds available to the Trustee for such purpose, including any existing deposits for a prepayment reserve. Annual Installments shall be collected by the Town in the same manner and at the same time as ad valorem taxes and shall be subject to the same penalties, procedures, and foreclosure sale in case of delinquencies as are provided for ad valorem taxes of the r Section VII THE ASSESSMENT ROLL Public Property, the Authorized Improvements. best and highest use of land, and other development factors deemed relevant by the Town Council) to determine. by Lot Type. Parcel set forth on the Assessment Roll. The Assessment Roll shall be updated the preparation of each Annual Service Plan Update to reflect, for each Parcel, subdivisions. consolidations. prepayments. and reductions authorized by this Service and Assessment Plan. Administrator or the Town and permitted by the Act: (i) the identification of each Parcel, (ii) the Assessment for each Parcel, including any adjustments authorized by this issuance of the Bonds. This update shall reflect the actual interest on the Bonds at which the Annual Installments shall be p d. anyreduction in the Assessments. changes 270 E. Severabilitv If any provision, section, subsection, sentence, clause or phrase of this Service and Assessment Plan, or the application of same to an Assessed Parcel or any person or set of circumstances is for any reason held to be unconstitutional, void or invalid, the validity of the remaining portions of this Service and Assessment Plan or the application to other persons or sets of circumstances shall not be affected thereby, it being the intent of the Town Council in adopting this Service and Assessment Plan that no part hereof, or provision or regulation contained herein shall become inoperative or fail by reason of any unconstitutionality, voidness or invalidity of any other part hereof, and all provisions of this Service and Assessment Plan are declared to be severable for that purpose. If any provision of this Service and Assessment Plan is determined by a court to be unenforceable, the unenforceable provision shall be deleted from this Service and Assessment Plan and the unenforceable provision shall, to the extent possible, be rewritten to be enforceable and to give effect to the intent of the Town. 272 Exhibit B-1 ESTIMATED PID COSTS 274 Exhibit C DIAGRAM OF THE AUTHORIZED IMPROVEMENTS 276