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HomeMy WebLinkAbout2022 0816Agenda Item No:1.5 CITY COUNCIL Agenda Item Report Meeting Date: August 16, 2022 Submitted by: Tina Stewart Submitting Department: City Secretary Item Type: Discussion Agenda Section: Subject: Items of Community Interest Suggested Action: Attachments: 4 Agenda Item No:1.6 CITY COUNCIL Agenda Item Report Meeting Date: August 16, 2022 Submitted by: Megan Charters Submitting Department: Library Item Type: Announcement Agenda Section: Subject: Receive presentation from the Library regarding upcoming events and activities. (Charters) Suggested Action: Attachments: 5 Agenda Item No:3.1 CITY COUNCIL Agenda Item Report Meeting Date: August 16, 2022 Submitted by: Tina Stewart Submitting Department: City Secretary Item Type: Discussion Agenda Section: Subject: Council to provide direction to staff regarding future agenda items. (Council) Suggested Action: Attachments: 6 Agenda Item No:4.1 CITY COUNCIL Agenda Item Report Meeting Date: August 16, 2022 Submitted by: Tina Stewart Submitting Department: City Secretary Item Type: Minutes Agenda Section: Subject: Consider approving City Council Regular Session meeting minutes for August 3, 2022. (Stewart) Suggested Action: Attachments: August 3, 2022 DRAFT Minutes.pdf 7 1 These items are strictly public service announcements. Expressions of thanks, congratulations or condolences; information regarding holiday schedules; honorary recognition of city officials, employees or other citizens; reminders about upcoming events sponsored by the City or other entity that are scheduled to be attended by a city official or city employee. No action will be taken and no direction will be given regarding these items. MINUTES OF THE CITY COUNCIL REGULAR SESSION HELD ON AUGUST 3, 2022 The Regular Session of the City Council of the City of The Colony, Texas, was called to order at 6:30 p.m. on the 3rd day of August 2022, at City Hall, 6800 Main Street, The Colony, Texas, with the following roll call: Richard Boyer, Mayor Judy Ensweiler, Councilmember Robyn Holtz, Councilmember Brian Wade, Deputy Mayor Pro Tem David Terre, Councilmember Perry Schrag, Councilmember Joel Marks, Mayor Pro Tem Present Present Present Present Present Present Present And with 7 councilmembers present a quorum was established and the following items were addressed: 1.0 ROUTINE ANNOUNCEMENTS, RECOGNITIONS and PROCLAMATIONS 1.1 Call to Order Mayor Boyer called the meeting to order at 6:30 p.m. 1.2 Invocation Pastor James Jenkins from Friendship Baptist Church delivered the invocation. 1.3 Pledge of Allegiance to the United States Flag The Pledge of Allegiance to the United States Flag was recited. 1.4 Salute to the Texas Flag Salute to the Texas Flag was recited. 1.5 Items of Community Interest 1.5.1 Receive presentation from Parks and Recreation regarding upcoming events and activities. Special Events Supervisor, Lindsey Stansell, provided upcoming events and activities to the Council. 2.0 CITIZEN INPUT None 8 City Council – Regular Meeting Agenda August 3, 2022 Page| 2 3.0 WORK SESSION 3.1 Discuss Public Information Requests Quarterly Report as presented for Council Review. No discussion 3.2 Council to provide direction to staff regarding future agenda items. Mayor expressed a concern with the high amount of power outages and requested a future agenda item regarding it. 4.0 CONSENT AGENDA Motion to approve all items from the Consent Agenda- Marks; second by Ensweiler, motion carried with all ayes. 4.1 Consider approving City Council Regular Session meeting minutes from July 19, 2022. 4.2 Consider approving Council expenditures for May and June 2022. 5.0 REGULAR AGENDA ITEMS 5.1 Discuss and consider approving a resolution authorizing the City’s participation in Denton County’s Community Development Block Grant Program for a three-year period from FY 2023 through FY 2025. Executive Session was convened at 6:43 p.m. Regular Session was reconvened at 7:06 p.m. Denton County’s Grant Manager, Rina Maloney, provided an overview on this item to Council and answered questions relative to it. John Dillard, 4024 Pear Ridge Drive; Janet Gadd, 5104 Sherman Drive and Sharon Jones, 5853 Baker Drive, spoke in opposition of this item and suggested tabling it. Motion to opt out– Ensweiler; second by Marks, motion carried with all ayes with the exception of Councilmember Wade voting no. 9 City Council – Regular Meeting Agenda August 3, 2022 Page| 3 5.2 Discuss and consider an ordinance amendment to Chapter 8 Article 3 Hotel Occupancy Tax addressing short-term rentals and the payment of hotel occupancy tax. ***ITEM PULLED FROM THE AGENDA WITH NO DISCUSSION*** 5.3 Discuss and consider the proposed 2023 budget from the Denton Central Appraisal District. Council provided discussion on this item. Motion to postpone to the August 16, 2022 meeting- Marks; second by Schrag, motion carried with all ayes with the exception of Mayor Boyer voting no. Executive Session was convened at 8:52 p.m. 6.0 EXECUTIVE SESSION 6.1 A. Council shall convene into a closed executive session pursuant to Sections 551.072 and 551.087 of the Texas Government Code to deliberate regarding purchase, exchange, lease or value of real property and commercial or financial information the city has received from a business prospect(s), and to deliberate the offer of a financial or other incentive to a business prospect(s). Regular Session was reconvened at 9:12 p.m. 7.0 EXECUTIVE SESSION ACTION 7.1 A. Any action as a result of executive session regarding purchase, exchange, lease or value of real property and commercial or financial information the city has received from a business prospect(s), and the offer of a financial or other incentive to a business prospect(s). No Action ADJOURNMENT With there being no further business to discuss the meeting adjourned at 9:13 p.m. APPROVED: __________________________________ Richard Boyer, Mayor City of The Colony, Texas ATTEST: _____________________________________ Tina Stewart, TRMC, CMC, City Secretary 10 Agenda Item No:4.2 CITY COUNCIL Agenda Item Report Meeting Date: August 16, 2022 Submitted by: David Cranford Submitting Department: Finance Item Type: Resolution Agenda Section: Subject: Consider approving an ordinance authorizing the Mayor to execute a Negotiated Settlement Agreement between the Atmos Cities Steering Committee and Atmos Energy Corporation regarding the company's 2022 RRM filing. (Miller) Suggested Action: City is a member of the Atmos Cities Steering Committee which has entered into an agreement with Atmos regarding the 2022 RRM filing for increased revenues. Attachments: Atmos 22 RRM.pdf Ord. 2022-xxxx Atmos Mid-Tex RRM.pdf 11 2557/35/8444378 1 July 28, 2022 MODEL STAFF REPORT FOR RESOLUTION OR ORDINANCE BACKGROUND AND SUMMARY The City, along with 181 other Mid-Texas cities served by Atmos Energy Corporation, Mid- Tex Division (“Atmos Mid-Tex” or “Company”), is a member of the Atmos Cities Steering Committee (“ACSC”). In 2007, ACSC and Atmos Mid-Tex settled a rate application filed by the Company pursuant to Section 104.301 of the Texas Utilities Code for an interim rate adjustment commonly referred to as a GRIP filing (arising out of the Gas Reliability Infrastructure Program legislation). That settlement created a substitute rate review process, referred to as Rate Review Mechanism (“RRM”), as a substitute for future filings under the GRIP statute. Since 2007, there have been several modifications to the original RRM Tariff. The most recent iteration of an RRM Tariff was reflected in an ordinance adopted by ACSC members in 2018. On or about April 1, 2022, the Company filed a rate request pursuant to the RRM Tariff adopted by ACSC members. The Company claimed that its cost-of-service in a test year ending December 31, 2021, entitled it to additional system-wide revenues of $141.3 million. Application of the standards set forth in ACSC’s RRM Tariff reduces the Company’s request to $115 million, $83.26 million of which would be applicable to ACSC members. ACSC’s consultants concluded that the system-wide deficiency under the RRM regime should be $95.8 million instead of the claimed $141.3 million. The Executive Committee recommends a settlement at $115 million. The Effective Date for new rates is October 1, 2022. ACSC members should take action approving the Resolution/Ordinance before September 30, 2022. 12 2557/35/8444378 2 RATE TARIFFS Atmos generated rate tariffs attached to the Resolution/Ordinance will generate $115 million in additional revenues. Atmos also prepared a Proof of Revenues supporting the settlement figures. ACSC consultants have agreed that Atmos’ Proof of Revenues is accurate. BILL IMPACT The impact of the settlement on average residential rates is an increase of $4.60 on a monthly basis, or 6.7 percent. The increase for average commercial usage will be $14.34 or 4.3 percent. Atmos provided bill impact comparisons containing this figures. SUMMARY OF ACSC’S OBJECTION TO THE UTILITIES CODE SECTION 104.301 GRIP PROCESS ACSC strongly opposed the GRIP process because it constitutes piecemeal ratemaking by ignoring declining expenses and increasing revenues while rewarding the Company for increasing capital investment on an annual basis. The GRIP process does not allow any review of the reasonableness of capital investment and does not allow cities to participate in the Railroad Commission’s review of annual GRIP filings or allow recovery of Cities’ rate case expenses. The Railroad Commission undertakes a mere administrative review of GRIP filings (instead of a full hearing) and rate increases go into effect without any material adjustments. In ACSC’s view, the GRIP process unfairly raises customers’ rates without any regulatory oversight. In contrast, the RRM process has allowed for a more comprehensive rate review and annual evaluation of expenses and revenues, as well as capital investment. RRM SAVINGS OVER GRIP While residents outside municipal limits must pay rates governed by GRIP, there are some cities served by Atmos Mid-Tex that chose to remain under GRIP rather than adopt RRM. Additionally, the City of Dallas adopted a variation of RRM which is referred to as DARR. When 13 2557/35/8444378 3 new rates become effective on October 1, 2022, ACSC residents will maintain an economic monthly advantage over GRIP and DARR rates. Comparison to Other Mid-Tex Rates (Residential) Average Bill Compared to RRM Cities RRM Cities: $73.22 - DARR: $71.96 ($1.26) ATM Cities: $78.72 $5.50 Environs: $78.53 $5.31 Note: DARR rate is as-filed 1/22/22. Also note that DARR uses a test year ending in September rather than December. EXPLANATION OF “BE IT RESOLVED” PARAGRAPHS: 1. This section approves all findings in the Resolution/Ordinance. 2. This section adopts the RRM rate tariffs and finds the adoption of the new rates to be just, reasonable, and in the public interest. 3. This section makes it clear that Cities may challenge future costs associated with gas leaks like the explosion in North Dallas or the evacuation in Georgetown. 4. This section finds that existing rates are unreasonable. Such finding is a necessary predicate to establishment of new rates. The new tariffs will permit Atmos Mid-Tex to recover an additional $115 million from ACSC Cities. 5. This section approves an exhibit that establishes a benchmark for pensions and retiree medical benefits to be used in future rate cases or RRM filings. 6. This section requires the Company to reimburse the City for expenses associated with review of the RRM filing, settlement discussions, and adoption of the Resolution/Ordinance approving new rate tariffs. 7. This section repeals any resolution or ordinance that is inconsistent with the Resolution/Ordinance. 14 2557/35/8444378 4 8. This section finds that the meeting was conducted in compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. 9. This section is a savings clause, which provides that if any section is later found to be unconstitutional or invalid, that finding shall not affect, impair, or invalidate the remaining provisions of this Resolution/Ordinance. This section further directs that the remaining provisions of the Resolution/Ordinance are to be interpreted as if the offending section or clause never existed. 10. This section provides for an effective date upon passage. 11. This section directs that a copy of the signed Resolution/Ordinance be sent to a representative of the Company and legal counsel for ACSC. CONCLUSION The Legislature’s GRIP process allowed gas utilities to receive annual rate increases associated with capital investments. The RRM process has proven to result in a more efficient and less costly (both from a consumer rate impact perspective and from a ratemaking perspective) than the GRIP process. Given Atmos Mid-Tex’s claim that its historic cost of service should entitle it to recover $141.3 million in additional system-wide revenues, the RRM settlement at $115 million for ACSC Cities reflects substantial savings to ACSC Cities. Settlement at $115 million is fair and reasonable. The ACSC Executive Committee consisting of city employees of 18 ACSC members urges all ACSC members to pass the Resolution/Ordinance before September 30, 2022. New rates become effective October 1, 2022. 15 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2022 - __________ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, APPROVING A NEGOTIATED SETTLEMENT BETWEEN THE ATMOS CITIES STEERING COMMITTEE (“ACSC”) AND ATMOS ENERGY CORP., MID-TEX DIVISION REGARDING THE COMPANY’S 2022 RATE REVIEW MECHANISM FILING; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE NEGOTIATED SETTLEMENT; FINDING THE RATES TO BE SET BY THE ATTACHED SETTLEMENT TARIFFS TO BE JUST AND REASONABLE AND IN THE PUBLIC INTEREST; APPROVING AN ATTACHMENT ESTABLISHING A BENCHMARK FOR PENSIONS AND RETIREE MEDICAL BENEFITS; REQUIRING THE COMPANY TO REIMBURSE ACSC’S REASONABLE RATEMAKING EXPENSES; DETERMINING THAT THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; ADOPTING A SAVINGS CLAUSE; DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND THE ACSC’S LEGAL COUNSEL. WHEREAS, the City of The Colony, Texas (“City”) is a gas utility customer of Atmos Energy Corp., Mid-Tex Division (“Atmos Mid-Tex” or “Company”), and a regulatory authority with an interest in the rates, charges, and services of Atmos Mid-Tex; and WHEREAS, the City is a member of the Atmos Cities Steering Committee (“ACSC”), a coalition of similarly-situated cities served by Atmos Mid-Tex (“ACSC Cities”) that have joined together to facilitate the review of, and response to, natural gas issues affecting rates charged in the Atmos Mid-Tex service area; and WHEREAS, ACSC and the Company worked collaboratively to develop a Rate Review Mechanism (“RRM”) tariff that allows for an expedited rate review process by ACSC Cities as a substitute to the Gas Reliability Infrastructure Program (“GRIP”) process instituted by the 16 2557/35/8444371 2 Legislature, and that will establish rates for the ACSC Cities based on the system-wide cost of serving the Atmos Mid-Tex Division; and WHEREAS, the current RRM tariff was adopted by the City in a rate ordinance in 2018; and WHEREAS, on about April 1, 2022, Atmos Mid-Tex filed its 2022 RRM rate request with ACSC Cities based on a test year ending December 31, 2021; and WHEREAS, ACSC coordinated its review of the Atmos Mid-Tex 2022 RRM filing through its Executive Committee, assisted by ACSC’s attorneys and consultants, to resolve issues identified in the Company’s RRM filing; and WHEREAS, the Executive Committee, as well as ACSC’s counsel and consultants, recommend that ACSC Cities approve an increase in base rates for Atmos Mid-Tex of $115 million on a system-wide basis with an Effective Date of October 1, 2022; and WHEREAS, ACSC agrees that Atmos plant-in-service is reasonable; and WHEREAS, with the exception of approved plant-in-service, ACSC is not foreclosed from future reasonableness evaluation of costs associated with incidents related to gas leaks; and WHEREAS, the attached tariffs (Attachment 1) implementing new rates are consistent with the recommendation of the ACSC Executive Committee, are agreed to by the Company, and are just, reasonable, and in the public interest; and WHEREAS, the settlement agreement sets a new benchmark for pensions and retiree medical benefits (Attachment 2); and WHEREAS, the RRM Tariff contemplates reimbursement of ACSC’s reasonable expenses associated with RRM applications; 17 2557/35/8444371 3 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: Section 1. That the findings set forth in this Ordinance are hereby in all things approved. Section 2. That, without prejudice to future litigation of any issue identified by ACSC, the City Council finds that the settled amount of an increase in revenues of $115 million on a system-wide basis represents a comprehensive settlement of gas utility rate issues affecting the rates, operations, and services offered by Atmos Mid-Tex within the municipal limits arising from Atmos Mid-Tex’s 2022 RRM filing, is in the public interest, and is consistent with the City’s authority under Section 103.001 of the Texas Utilities Code. Section 3. That despite finding Atmos Mid-Tex’s plant-in-service to be reasonable, ACSC is not foreclosed in future cases from evaluating the reasonableness of costs associated with incidents involving leaks of natural gas. Section 4. That the existing rates for natural gas service provided by Atmos Mid-Tex are unreasonable. The new tariffs attached hereto and incorporated herein as Attachment 1, are just and reasonable, and are designed to allow Atmos Mid-Tex to recover annually an additional $115 million on a system-wide basis, over the amount allowed under currently approved rates. Such tariffs are hereby adopted. Section 5. That the ratemaking treatment for pensions and retiree medical benefits in Atmos Mid-Tex’s next RRM filing shall be as set forth on Attachment 2, attached hereto and incorporated herein. Section 6. That Atmos Mid-Tex shall reimburse the reasonable ratemaking expenses of ACSC in processing the Company’s 2022 RRM filing. 18 2557/35/8444371 4 Section 7. That to the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Ordinance, it is hereby repealed. Section 8. That the meeting at which this Ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 9. That if any one or more sections or clauses of this Ordinance is adjudged to be unconstitutional or invalid, such judgment shall not affect, impair, or invalidate the remaining provisions of this Ordinance, and the remaining provisions of the Ordinance shall be interpreted as if the offending section or clause never existed. Section 10. That consistent with the City Ordinance that established the RRM process, this Ordinance shall become effective from and after its passage with rates authorized by attached tariffs to be effective for bills rendered on or after October 1, 2022. Section 11. That a copy of this Ordinance shall be sent to Atmos Mid-Tex, care of Chris Felan, Vice President of Rates and Regulatory Affairs Mid-Tex Division, Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1862, Dallas, Texas 75240, and to Thomas Brocato, General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS 16th DAY OF AUGUST 2022. Richard Boyer, Mayor City of The Colony, Texas 19 2557/35/8444371 5 ATTEST: ___________________________________ Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: ___________________________________ Jeffrey L. Moore, City Attorney 20 Agenda Item No:4.3 CITY COUNCIL Agenda Item Report Meeting Date: August 16, 2022 Submitted by: Robert Kotasek Submitting Department: Engineering Item Type: Resolution Agenda Section: Subject: Consider approving a resolution authorizing the City Manager to execute Contract Amendment #2 in the amount of $20,000.00 with Halff Associates, Inc. for new development project review and engineering assistance services. (Hartline) Suggested Action: Background: The city currently uses Halff Associates, Inc. to assist with the review of new development plans and other related engineering assistance tasks. The contract with Halff Associates, Inc. has helped shorten review time significantly on plans for development projects and provides specialized engineering services, when needed. The consultant provides engineering services to the city on an as-needed basis and provides access to a variety of engineering expertise. The consultant’s staff understands the city’s design criteria and performs engineering services using task orders for each assignment. The current contract funding will be fully utilized in August 2022. Contract Amendment #2 will increase the initial contract by $20,000.00 to a new total contract amount of $65,000.00. Funding for these services is available from the Engineering Department Budget. Suggested Motion: I move to recommend approval of a resolution authorizing the City Manager to execute Contract Amendment #2 in the amount of $20,000.00 with Halff Associates, Inc. for new development project review and engineering assistance services. Attachments: Financial Summary Contract Amendment #2 with Halff Associates, Inc. Res 2022-xxx Halff Associates Contract Amendment .pdf 21 Financial Summary: Are budgeted funds available:  Yes  No Amount budgeted/available: $65,000.00 Fund(s) (Name and number): 100-669-6210 Source of Funds: Annual Budget for Engineering FY 2021-2022 Cost of recommended bid/contract award: $20,000.00 Total estimated project cost: $ 30,000.00 Plan review/inspection services Already authorized  Yes  No $ 15,000.00 Contract Amendment #1 Already authorized  Yes  No $ 20,000.00 Contract Amendment #2 Already authorized  Yes  No $ 65,000.00 Total estimated costs 22 23 24 25 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2022 - _________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT AMENDMENT #2 WITH HALFF ASSOCIATES, INC., FOR NEW DEVELOPMENT PROJECT REVIEW AND ENGINEERING ASSISTANCE SERVICES; PROVIDING AN EFFECTIVE DATE NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: Section 1. That the City Council of the City of The Colony, Texas, has duly reviewed and considered the contract amendment #2 with Halff Associates, Inc., for new development project review and engineering assistance services. Section 2. That this Contract Amendment #2, is found to be acceptable and in the best interest of the City and its citizens, and the City Manager is hereby authorized to execute the amendment on behalf of the City of The Colony, Texas, with the terms and conditions as stated therein. Section 3. That with this Amendment the City of The Colony is agreeing to pay the sum of $20,000.00 for such work. Section 4. That this resolution shall take effect immediately from and after its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS 16th DAY OF AUGUST 2022. Richard Boyer, Mayor City of The Colony, Texas ATTEST: Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: Jeffrey L. Moore, City Attorney 26 Agenda Item No:4.4 CITY COUNCIL Agenda Item Report Meeting Date: August 16, 2022 Submitted by: Robert Kotasek Submitting Department: Engineering Item Type: Resolution Agenda Section: Subject: Consider approving a resolution authorizing the City Manager to sign an Engineering Services Contract in the amount of $ 66,500.00 with Halff Associates, Inc. for the Tribute Shoreline Erosion Control Project. (Hartline) Suggested Action: Background: Soil erosion problems have developed at two separate subdivision drainage pipe outfalls located behind two homes along Castlebridge Drive in the Tribute. These drainage pipes are located along the shoreline of Lake Lewisville and discharge directly to the lake. If not addressed, this erosion problem could cause additional damage to the existing headwall, could washout additional rock riprap and could cause additional erosion in the existing earthen drainage channels going to Lake Lewisville. Private properties near the outfalls could also be impacted if not addressed. City staff has received calls from both the Tribute HOA and Tribute residents regarding the erosion problems that are occurring at these two outfalls. A Site Location Map and site photos of the areas of concern are attached. The project will be funded using approved 2021-2022 CIP funding. The project will include an analysis of the existing drainage outfalls and riprap, surveying, a geotechnical investigation, coordination with USACE, environmental services, preparing construction plans and specifications and construction management services. The project will include reconstructing the existing storm drain outfalls, adding rock riprap and adding gabion baskets to minimize future erosion at both locations. This project will include tying these structures into a new gabion wall that will be constructed along the shoreline by the Tribute HOA to protect homes from erosion being caused by wave action from the lake. A financial summary for the project is attached for review. Recommendation: Staff recommends approval of a resolution authorizing the City Manager to sign an Engineering Services Contract in the amount of $ 66,500.00 with Halff Associates, Inc. for the Tribute Shoreline Erosion Control Project. With approval, the project is anticipated to be advertised for bid in February 2023. Attachments: 27 Location Map Photo 1. Tribute Shoreline Erosion Problem Area Photo 2. Tribute Shoreline Erosion Problem Area Photo 3. Tribute Shoreline Erosion Problem Area Financial Summary. Scope of Services Res. 2022-xxx Shoreline Erosion Engineering Services Contract - Halff Associates.pdf 28 IveyW a v e r ly C a s tle b rid g e WindsorMilton AshfordNewtown C r o m w e l l Cumberland HaddingtonWaterford WatersidePromenade Bellevue Isle of SkyeFairway D o r s e tMarlow A m e s b u ry µLocation MapTribute Shoreline Erosion Control Project South Outfall Drainag e So il Ero sion Problem Are a North Outfall Drainage Soil Erosoin Problem Area 29 30 31 32 FINANCIAL SUMMARY: Are budgeted funds available:  Yes  No Amount budgeted/available: $400.000.00 (This is a budgeted CIP project) Source of Funds: Miscellaneous drainage and erosion control projects: Storm Water Utility Fund 710-669-6421 Project Number 2273 Cost of recommended contract award: $ 66,500.00 Total estimated project cost: $ 66,500.00 Engineering Cost Already authorized  Yes  No $ 333,500.00 Future Estimated Construction Cost Already authorized  Yes  No $ 400,000.00 Total Project Cost 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2022 – ________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, APPROVING AN ENGINEERING SERVICES CONTRACT BY AND BETWEEN THE CITY OF THE COLONY AND HALFF ASSOCIATES, INC. FOR THE TRIBUTE SHORELINE EROSION CONTROL PROJECT; AUTHORING THE CITY MANAGER TO EXECUTE THE CONTRACT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City and Consultant have entered into an Engineering Services Contract for the Tribute Shoreline Erosion Control Project; and WHEREAS, the City has determined that it is in the best interest of the City to enter into the Contract with Halff Associates, Inc. under the terms and conditions provided therein; and WHEREAS, with this Contract the City of The Colony is agreeing to the services not to exceed the amount of $66,500.00 for such work. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THAT: Section 1. The Engineering Services Contract, having been reviewed by the City Council of the City of The Colony, Texas, and found to be acceptable and in the best interest of the City and its citizens, be, and the same is hereby, in all things approved. Section 2. The City Manager is hereby authorized to execute the Contract on behalf of the City of The Colony, Texas. Section 3. This Resolution shall take effect immediately from and after its adoption and it is so resolved. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS THIS 16th DAY OF AUGUST 2022. _____________________________ Richard Boyer, Mayor City of The Colony, Texas ATTEST: ___________________________________ Tina Stewart, TRMC, CMC, City Secretary 55 APPROVED AS TO FORM: ___________________________________ Jeffrey L. Moore, City Attorney 56 Agenda Item No:4.5 CITY COUNCIL Agenda Item Report Meeting Date: August 16, 2022 Submitted by: Tina Stewart Submitting Department: City Secretary Item Type: Discussion Agenda Section: Subject: Consider approving Judith Hebb's resignation from the Library Board. (Council) Suggested Action: Attachments: 57 Agenda Item No:5.1 CITY COUNCIL Agenda Item Report Meeting Date: August 16, 2022 Submitted by: David Cranford Submitting Department: Finance Item Type: Discussion Agenda Section: Subject: Conduct a public hearing, discuss and consider the City of The Colony Preliminary Municipal Budget 2022-2023. (Miller) Suggested Action: Local Government Code requires a public hearing on the budget to receive input from the public. Attachments: Summaries22-23II.xlsx 58 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget Current Property Taxes 25,742,944 27,508,267 29,527,026 33,799,712 Rendition Penalty Revenue 9,755 (17,682)5,000 5,000 Ag. Roll Back Taxes -61,364 -- Delinquent Property Tax 77,196 9,606 75,000 10,000 Penalties & Interest 86,428 70,532 80,000 50,000 Total 25,916,323 27,632,087 29,687,026 33,864,712 Sales Taxes 7,051,646 9,124,598 8,000,000 10,000,000 Mixed Beverage Tax 391,301 597,077 450,000 550,000 Total 7,442,947 9,721,675 8,450,000 10,550,000 Electric 1,439,759 1,485,316 1,485,316 1,485,316 Natural Gas 181,608 213,079 180,000 240,000 Telephone 182,763 103,595 180,000 75,000 PEG Fees 96,201 14,260 90,000 40,000 Video 385,474 225,017 350,000 150,000 Sanitation-Residential 208,020 203,058 200,000 200,000 Sanitation-Commercial 271,608 272,959 250,000 250,000 Total 2,765,433 2,517,284 2,735,316 2,440,316 TOTAL TAXES 36,124,703 39,871,046 40,872,342 46,855,028 Building Permits-New Homes 842,781 447,832 650,000 650,000 Building Permits-Other 509,925 500,539 400,000 550,000 Commercial Permits 96,950 276,014 20,000 600,000 Certificates Of Occupancy 5,175 4,875 5,000 5,000 Zoning Fees 5,307 13,030 6,000 6,000 Fire Fees 22,737 15,175 20,000 15,000 Solicitors Permits 5,742 1,660 4,000 1,000 Health Permits 127,640 121,267 125,000 120,000 Platting Fees 9,135 26,316 10,000 10,000 Alcohol Permits 27,120 31,135 25,000 25,000 Code Enforcement Fees 18,328 28,038 18,000 18,000 Eng Inspection Overtime Fee 2,120 2,680 1,000 1,000 Inspection Fees 162,997 60,288 20,000 250,000 Grading Permit 1,998 1,905 1,000 1,000 TOTAL LICENSES & PERMITS 1,837,955 1,530,754 1,305,000 2,252,000 Ambulance Calls 794,093 954,468 750,000 700,000 Ambulance Subscription Revenue 22,883 23,652 20,000 20,000 Service Liens 22,531 20,280 20,000 20,000 Denton County Engine Response --1,500 1,500 County Ambulance Funds 21,438 21,438 21,000 21,000 County Fire Funds 10,000 10,000 10,000 10,000 Total 870,945 1,029,838 822,500 772,500 County Library Funds 43,405 44,305 39,000 39,000 Total 43,405 44,305 39,000 39,000 Revenue & Expenditure Projections Fiscal Year 2022-2023 Franchise Taxes LICENSES & PERMITS GENERAL FUND CHARGES FOR SERVICES TAXES Ad Valorem Taxes City Sales Taxes Fire & Ambulance Library 59 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget Revenue & Expenditure Projections Fiscal Year 2022-2023 GENERAL FUND TOTAL CHARGES FOR SERVICES 914,350 1,074,143 861,500 811,500 Municipal Court Fines 595,913 712,551 550,000 770,000 Library Fees 8,058 5,370 10,000 10,000 Animal Control Fees 22,880 22,334 20,000 20,000 TOTAL FINES AND FORFEITURES 626,851 740,255 580,000 800,000 Interest Income 299,388 20,666 25,000 25,000 TOTAL INVESTMENT INCOME 299,388 20,666 25,000 25,000 Auction Proceeds 30,463 16,400 10,000 10,000 Tower Rental Fees 335,532 327,553 300,000 300,000 Insurance Reimbursement --1,000 1,000 LEISD SRO Reimbursement 88,227 45,271 95,000 95,000 LISD SRO Reimbursement 243,863 256,280 256,000 256,000 Miscellaneous 108,036 51,250 65,000 65,000 Police Reports 4,754 4,000 4,000 4,000 Alarm Fees 37,181 31,064 30,000 30,000 TOTAL OTHER REVENUES 848,056 731,818 761,000 761,000 TOTAL REVENUES 40,651,303 43,968,682 44,404,842 51,504,528 Transfer - Storm Water Utility 50,000 50,000 50,000 50,000 Transfer In-GF Capital Projects - Transfer - Child Safety Fund 10,000 10,000 10,000 10,000 154,207 151,206 153,356 155,031 244,813 244,396 244,432 244,718 49,457 49,610 49,671 50,233 131,000 131,000 131,288 130,869 Transfers In - Parking Lot (CDC)66,091 66,091 65,265 123,000 Transfers In - 4B 5 Starr ---- Transfers In - CARES Fund ---- Transfers in - KTKB 73,000 --- TOTAL TRANSFERS 778,568 702,303 704,012 763,851 41,429,871 44,670,985 45,108,854 52,268,379 OTHER REVENUES TRANSFER IN TOTAL REVENUES & TRANSFERS INVESTMENT INCOME Transfers In - EDC S. Colony Conn-Ph2 Transfers In - EDC - Cascades Transfers In - EDC - Memorial Drive Transfers In - Hike & Bike Trail (CDC) FINES AND FORFEITURES 60 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget Revenue & Expenditure Projections Fiscal Year 2022-2023 GENERAL FUND Non-Departmental 11,883,150 8,302,320 9,995,721 11,883,150 General Administration 1,160,271 1,730,847 1,779,349 1,891,410 City Council 83,694 48,508 88,520 88,520 Community Image 538,946 507,138 531,973 550,749 City Secretary 440,776 478,523 429,893 428,077 Human Resources 657,156 705,534 685,357 728,224 Finance 1,174,731 1,335,462 1,296,299 1,322,418 Information Technology 774,889 801,005 1,024,817 991,490 Planning & Development ---301,101 Municipal Court 386,159 416,938 487,265 498,312 Public Safety Dispatch 1,248,545 1,396,124 1,453,610 1,728,780 Fire 9,012,586 11,392,953 11,916,713 12,993,411 Police 9,833,565 11,250,321 11,689,484 12,811,483 Animal Control 476,702 503,480 489,359 611,268 Library 1,144,412 1,158,115 1,269,344 1,336,205 Engineering 1,821,887 1,973,829 2,191,824 2,012,615 Facilities Maintenance 908,898 1,067,257 1,073,346 1,099,003 Fleet Services 911,071 1,123,572 1,190,378 1,298,581 Personnel Additions --2,065,068 1,089,990 Raises/Health Care --1,400,000 2,145,557 CIP Debt and Cash Items --3,165,000 2,095,000 TOTAL EXPENDITURES 42,457,438 44,191,926 54,223,320 57,905,344 Transfer - CVB 115,000 115,000 115,000 400,000 Transfer - Special Events 40,000 40,000 345,000 400,000 Transfer - KTB --10,000 10,000 Transfer - Utility ---- Transfer - Parks Fund 3,066,823 2,831,823 2,946,823 3,201,823 Transfer - Utility Cap --- Transfer - Trinity North 20,000 90,000 - Transfer - G.F. Special Cap 2,441,970 --- TOTAL TRANSFER OUT 5,663,793 3,006,823 3,506,823 4,011,823 48,121,231 47,198,749 57,730,143 61,917,167 OH COST ALLOCATION (6,346,469)(6,346,461)(6,691,461)(5,661,461) 14,483,981 17,922,322 21,741,019 15,811,191 3,438,341 3,818,697 (5,929,828)(3,987,327) 17,922,322 21,741,019 15,811,191 11,823,864 17,922,322 21,741,019 15,811,191 11,823,864 157 194 121 80 BEGINNING FUND BALANCE EXPENDITURES TRANSFER OUT TOTAL EXPENDITURES & TRANSFERS EXCESS/(DEFICIENCY) ENDING FUND BALANCE UNRESERVED FUND BALANCE Working Days in Fund Balance 61 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget Recreation Program Revenue 65,316 201,174 190,000 200,000 Athletic Program Revenue 31,578 59,320 50,000 50,000 Athletic & Recreation Facility Revenue 126,793 252,452 160,000 250,000 Pass Revenue 10,907 19,980 15,000 15,000 Total 234,594 532,926 415,000 515,000 Swimming Lessons 89,239 175,366 165,000 170,000 Entrance Fees 2,404 32,968 25,000 30,000 Concession Sales 12 1,411 1,000 1,000 Private Party Fees 67,393 90,823 75,000 90,000 Total 159,048 300,568 266,000 291,000 Rental Revenue 7,195 1,115 14,000 1,000 Program Revenue 193 1,640 1,200 1,200 Travel Commissions ---- Membership Fees 6,440 8,189 6,000 6,000 Total 13,828 10,944 21,200 8,200 TOTAL CHARGES FOR SERVICES 407,470 844,438 702,200 814,200 Horizon Lease Payment 95,361 2,137 140,000 90,000 Miscellaneous 25,148 30,165 6,500 20,000 Interest Income 16,946 8,499 1,000 1,000 TOTAL OTHER INCOME 137,455 40,801 147,500 111,000 TOTAL REVENUES 544,925 885,239 849,700 925,200 Transfer - General Fund 3,066,825 2,831,823 2,946,823 3,201,823 Transfer - CDC Five Star Maintenance 165,000 165,000 165,000 165,000 Transfer - CDC Fund Personnel 134,845 134,845 134,845 134,845 Transfer - Lake Parks Fund 35,000 35,000 35,000 35,000 TOTAL TRANSFERS 3,401,670 3,166,668 3,281,668 3,536,668 3,946,595 4,051,907 4,131,368 4,461,868 Non-Departmental 10,883 Parks & Recreation 2,102,545 2,425,921 2,592,579 2,789,536 Aquatic Park 345,698 494,546 572,320 570,515 Community Center 207,688 223,734 246,936 231,131 Capital ---- TOTAL EXPENDITURES 2,666,814 3,144,201 3,411,835 3,591,182 OH COST 1,014,189 1,014,398 1,014,398 1,014,398 1,025,665 1,291,257 1,184,565 889,700 265,592 (106,692)(294,865)(143,712) 1,291,257 1,184,565 889,700 745,988 128 104 75 60 PARKS FUND Revenue & Expenditure Projections Fiscal Year 2022-2023 TOTAL REVENUES & TRANSFERS EXPENDITURES CHARGES FOR SERVICES Parks & Recreation Aquatic Park Community Center EXCESS (DEFICIENCY) OTHER INCOME Working Days in Fund Balance ENDING FUND BALANCE BEGINNING FUND BALANCE TRANSFER IN 62 2019-2020 2020-21 2021-2022 2022-2023 Actual Actual Budget Budget CHARGES FOR SERVICES 12,620,935 13,237,882 13,899,776 14,594,765 6,589,826 7,774,920 8,163,666 8,571,849 7,640 8,964 8,000 8,000 436,105 441,270 425,000 425,000 311,060 182,786 300,000 180,000 227,674 17,404 25,000 18,000 75,035 146,662 75,000 125,000 Recycling Billing 50,816 -15,000 - Recycling Education Contribution 72,000 36,000 36,000 36,000 20,391,091 21,845,888 22,947,442 23,958,614 TRANSFERS IN 100,000 100,000 100,000 100,000 ---- 100,000 100,000 100,000 100,000 TOTAL REVENUES & TRANSFERS 20,491,091 21,945,888 23,047,442 24,058,614 EXPENDITURES 8,646 12,234 352,000 452,000 3,771,675 4,260,256 4,320,626 4,567,863 1,147,709 1,111,757 1,324,453 1,281,055 1,414,278 1,730,545 1,651,622 1,711,525 1,284,421 1,348,784 1,443,191 1,617,937 1,960,453 2,348,927 2,705,425 2,929,883 Storm Water - Engineering 3,000 13,470 83,100 63,100 Storm Water - Streets & Drainage 100,755 134,641 165,032 183,718 Environmental 170,991 124,521 249,641 137,000 Capital ---- 9,861,928 11,085,135 12,295,090 12,944,081 TRANSFERS OUT ---- 6,000,000 7,720,000 6,000,000 6,000,000 ---- --- TOTAL TRANSFERS OUT 6,000,000 7,720,000 6,000,000 6,000,000 15,861,928 19,149,708 18,295,090 18,944,081 OH COST 4,994,365 5,153,630 5,498,630 4,448,630 6,670,714 6,305,512 3,948,062 3,201,784 (365,202)(2,357,450)(746,278)665,903 6,305,512 -3,948,062 3,201,784 3,867,687 110 59 49 60 Transfer - General Fund Transfer - Utility Debt Service Transfer - D. S. Revenue bonds Transfer - Special Projects Transfer - Capital Projects Admin TOTAL EXPENDITURES & TRANSFERS BEGINNING FUND BALANCE EXCESS (DEFICIENCY) ENDING FUND BALANCE Working Days in Fund Balance Waste Water Utility Administration Streets & Drainage TOTAL EXPENDITURES Transfer - Storm Water Utility Fund TOTAL TRANSFERS IN Non-Departmental Water Production Water Distribution Transfer - General Fund TOTAL REVENUES Water Service Wastewater Service UTILITY FUND Revenue & Expenditure Projections Fiscal Year 2022-2023 Reconnect Fees Penalties Tap Connection Fees Interest Income Miscellaneous 63 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget Revenues 8,544,678 8,881,216 9,641,478 6,541,880 28,339 20,220 25,000 25,000 -100 -0 28,470 14,112 25,000 25,000 43,535 3,746 40,000 40,000 Bond Proceeds 6,332,460 7,587,000 -- Bond Premiums 2,663,273 783,429 -- ---- 17,640,755 17,289,823 9,731,478 6,631,880 TOTAL REVENUES & TRANSFERS 17,640,755 17,289,823 9,731,478 6,631,880 EXPENDITURES 620,120 --- 153,465 --- Refunding Bonds - 2010/2001 ---- Refunding Bonds - 2011/2002 697,072 698,896 703,456 - Refunding Bonds - 2012/2003 &2007 227,588 225,262 222,825 224,025 154,206 151,506 153,356 155,031 Refunding Bonds - 2013/2004 GF/Utility 372,650 372,050 371,750 373,700 Refunding Bonds - 2014/2006 GF/Utility 269,624 268,264 268,893 269,361 Refunding Bonds - 2015/2005 &2007 GF/Utility 1,223,966 852,686 688,398 685,950 Refunding Bonds - 2020/2010 &2010A -806,445 815,681 811,912 Certificates of Obligation - 2014 221,624 221,886 221,476 221,467 Certificates of Obligation - 2016 942,759 1,133,488 1,131,913 947,726 Certificates of Obligation - 2018 1,094,265 1,084,184 1,085,085 1,085,310 Certificates of Obligation - 2019 996,080 995,971 992,717 991,709 Certificates of Obligation - 2020 137,903 253,309 253,938 253,500 Certificates of Obligation - 2021 --469,800 491,738 Certificates of Obligation - 2022 935,530 Governmental Capital 10 year note (2)112,263 112,263 112,263 112,263 Equipment Capital Lease 10 year Oshkosh 228,090 -135,693 135,693 Governmental Capital 3 year note (1) 227,530 220,279 -0 Refunding of 2010 and 2010A Cos 7,363,663 342,047 159,440 200,000 200,000 TOTAL EXPENDITURES 15,384,915 7,555,929 7,827,244 7,894,915 Transfer - General Fund -8,217,000 ---- Transfer - CIP ------ TOTAL EXPENDITURES & TRANSFERS 15,384,915 15,772,929 7,827,244 7,894,915 778,605 1,516,894 1,904,234 (1,263,035) 1,170,670 1,949,275 3,466,169 5,370,403 1,949,275 3,466,169 5,370,403 4,107,367 GENERAL DEBT SERVICE Revenue & Expenditure Projections Fiscal Year 2022-2023 Ag. Roll Back Taxes TOTAL REVENUES Current Property Taxes Delinquent Property Taxes Penalty & Interest Investment Income Misc Income TRANSFER OUT EXCESS (DEFICIENCY) BEGINNING FUND BALANCE ENDING FUND BALANCE Certificates of Obligation - 2010 Certificates of Obligation - 2010A Certificates of Obligation - 2013 Fiscal Agent Fees & Other 64 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget CHARGES FOR SERVICES --- -3,400 -- ---- 19,425 --- Fees 465,057 476,860 400,000 450,000 Gain on Refunding 23,118 --- -2,664 -- 507,600 482,924 400,000 450,000 TRANSFERS IN Transfers In - EDC 4A 306,702 305,714 305,759 306,118 Water/Sewer Impact Fees 1,000,000 1,000,000 750,000 750,000 Revenue Bond Refunding ---- Revenue Supported Debt Balance Transfer ---- Transfers In - Utility Fund 6,000,000 7,720,000 6,000,000 6,000,000 Premium 419,743 --- 7,726,445 9,025,714 7,055,759 7,056,118 TOTAL REVENUES & TRANSFERS 8,234,045 9,508,638 7,455,759 7,506,118 EXPENDITURES Certificates of Obligation - 2007 ---- Certificates of Obligation - 2010 217,880 --- Certificates of Obligation - 2010A 31,535 --- General Obligation Refunding Bonds - 2011 220,128 220,704 222,144 - Revenue Refunding Bonds 2012 (03,07,08)75,862 75,088 74,275 74,675 General Obligation Refunding Bonds - 2013 1,490,600 1,488,200 1,487,000 1,494,800 General Obligation Refunding Bonds - 2014 1,316,400 1,309,760 1,312,832 1,315,144 General Obligation Refunding Bonds - 2020 30,053 263,302 266,319 265,088 Cetificate of Obligation - 2014 1,361,406 1,363,019 1,360,493 1,360,439 Cetificate of Obligation - 2015 823,450 827,350 820,450 817,850 Cetificate of Obligation - 2015 Refunding 576,784 401,264 323,952 322,800 Cetificate of Obligation - 2016 676,259 485,780 485,106 406,168 Cetificate of Obligation - 2018 121,584 120,464 120,565 120,590 Cetificate of Obligation - 2019 610,500 610,434 608,439 607,822 Cetificate of Obligation - 2020 -759,933 761,813 760,500 Cetificate of Obligation - 2021 --130,200 54,625 Cetificate of Obligation - 2021 623,687 Fees/Cost of Issuance 317,974 3,378 20,000 20,000 Transfer - CIP - TOTAL EXPENDITURES 7,870,415 7,928,676 7,993,588 8,244,188 363,630 1,579,962 (537,829)(738,070) 3,220,056 3,583,686 5,163,648 4,625,819 3,583,686 5,163,648 4,625,819 3,887,749 EXCESS (DEFICIENCY) BEGINNING FUND BALANCE ENDING FUND BALANCE Premium Penalty & Interest Investment Income TOTAL REVENUES TOTAL TRANSFERS IN TRANSFER OUT Current Property Taxes Delinquent Property Taxes UTILITY TAX SUPPORTED DEBT Revenue & Expenditure Projections Fiscal Year 2022-2023 65 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget CITY SALES TAXES Sales Tax Revenues 3,525,823 4,562,301 4,000,000 5,000,000 Investment Income 71,487 6,560 15,000 - Bond Proceeds ---- Miscellaneous Revenue 2,229 --- TOTAL REVENUES 3,599,539 4,568,861 4,015,000 5,000,000 EXPENDITURES Personnel Services 445,421 462,588 508,262 503,076 Contractual Services 45,990 36,287 211,500 211,500 Marketing 220,723 150,651 425,000 425,000 Supplies 4,325 10,490 18,300 18,300 Maintenance 185 2,786 1,500 1,500 Building Roof Maintenance --265,000 - Economic Development Incentives 80,483 159,391 475,000 600,000 Grant Program 10,169 5,594 25,000 25,000 Debt Service - Land 606,480 607,488 607,968 607,920 Capital SUV ---65,000 Capital Outlay-Generator ---225,000 Capital Outlay-Fiber Loop 900,000 Sales Tax Rebate 177,434 137,009 250,000 271,000 TOTAL EXPENDITURES 1,591,210 1,572,284 2,787,530 3,853,296 TRANSFERS OUT Transfer Out - General Fund BPP ---- Transfer Out - GF Cap Contribution ---- Transfer Out - GDSF 154,207 151,206 153,356 155,031 Transfer Out - GDSF 244,813 244,396 244,432 244,718 Transfer Out - GDSF 49,457 49,610 49,671 50,233 Transfer Out - UFDS 306,702 305,714 305,759 306,118 TOTAL TRANSFERS OUT 755,179 -750,926 753,218 756,100 TOTAL EXPENDITURES 2,346,389 2,323,210 3,540,748 4,609,396 OH COST 71,380 71,376 71,380 91,380 EXCESS (DEFICIENCY) 1,181,770 2,174,275 402,872 299,224 BEGINNING FUND BALANCE 8,956,211 10,137,981 12,312,256 12,715,128 ENDING FUND BALANCE 10,137,981 12,312,256 -12,715,128 -13,014,352 ECONOMIC DEVELOPMENT - TYPE A SALES TAXES Revenue & Expenditure Projections Fiscal Year 2022-2023 66 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget CITY SALES TAXES 3,525,823 4,562,301 4,000,000 5,000,000 55,333 4,779 4,000 0 Miscellaneous -1,000 3,581,156 4,568,080 4,004,000 5,000,000 TRANSFERS IN Transfer from General Fund -- Transfer from Capital Projects Fund -- TOTAL TRANSFERS IN ------ TOTAL REVENUES & TRANSFERS 3,581,156 4,568,080 4,004,000 5,000,000 EXPENDITURES-OPERATIONAL 174,633 193,206 228,032 125,971 33,525 45,363 56,300 73,000 2,170 1,989 4,650 8,650 36,430 39,587 47,600 47,600 Existing Park Improvements ---0 Early Prinicipal Payment ---0 Park Dedication Fee --0 Sales Tax Rebate 176,534 137,009 201,500 201,500 -8,273 3,128,340 0 423,292 425,427 3,666,422 456,721 TRANSFERS OUT Trnsfr Out - GDSF (Complex Debt)2,917,000 --- Trnsfr Out - Parks Fd (Five Star Maint.)165,000 165,000 165,000 165,000 Trnsfr Out - GDSF (Hike & Bike Trail)131,000 131,000 131,288 130,869 Trnsfr Out GDSF (Parking Lot)66,091 66,091 65,265 123,000 Trnsfr Out - Parks Fund (Personnel)134,845 134,845 134,845 134,845 TOTAL TRANSFERS OUT 3,413,936 -496,936 496,398 553,714 TOTAL EXPENDITURES & TRANSFERS 3,837,228 -922,363 4,162,820 1,010,435 OH COST 35,690 35,690 35,692 35,692 (291,762)3,610,027 (194,512)3,953,873 2,963,538 2,671,776 6,281,803 6,087,291 2,671,776 6,281,803 6,087,291 10,041,164 TOTAL EXPENDITURES EXCESS (DEFICIENCY) BEGINNING FUND BALANCE ENDING FUND BALANCE TOTAL REVENUES Personnel Services Capital Outlay Contractual Services Supplies Maintenance Sales Tax Revenues Investment Income COMMUNITY DEVELOPMENT - TYPE B SALES TAXES Revenue & Expenditure Projections Fiscal Year 2022-2023 67 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget REVENUES Assessment 1,061,109 1,672,426 902,327 904,500 Interest Income 69,494 721 -- Misc ---- TOTAL REVENUES 1,130,603 1,673,147 902,327 904,500 EXPENDITURES Personnel Services 780,451 400,734 270,161 283,668 Contractual Services 694,602 574,840 686,100 686,100 Supplies 4,913 579 1,000 1,000 Maintenance & Utility 72,402 71,638 225,000 225,000 Inspections ---- Capital Outlay 24,080 --- TOTAL EXPENDITURES 1,576,448 1,047,791 1,182,261 1,195,768 ADDED ENHANCEMENT SERVICES - INSPECTIONS --31,400 31,400 (445,845)625,356 (311,334)(322,668) 749,348 303,503 928,859 617,525 303,503 928,859 617,525 294,857 BEGINNING FUND BALANCE ENDING FUND BALANCE TIRZ ONE PID Revenue & Expenditure Projections Fiscal Year 2022-2023 EXCESS (DEFICIENCY) 68 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget REVENUES Court Security Revenue 11,415 20,414 12,000 20,000 Investment Income TOTAL REVENUES 11,415 20,414 12,000 20,000 EXPENDITURES Personnel Services --2,700 - Contractual Services -2,282 2,000 - Supplies --3,500 3,500 Maintenance Capital Outlay -12,700 - TOTAL EXPENDITURES -2,282 20,900 3,500 11,415 18,132 (8,900)16,500 255,161 266,576 284,708 275,808 266,576 284,708 275,808 292,308 BEGINNING FUND BALANCE ENDING FUND BALANCE EXCESS (DEFICIENCY) COURT SECURITY Revenue & Expenditure Projections Fiscal Year 2022-2023 69 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget REVENUES Court Technology Revenue 12,501 16,812 12,000 16,000 Investment Income ---- TOTAL REVENUES 12,501 16,812 12,000 16,000 EXPENDITURES Contractual Services ---- Supplies/ copiers/Telephone -190 -- Maintenance - Tyler/Duncan Parking Tech 9,175 18,576 11,500 - Non-Capital Capital Outlay -34,786 -- Overhead Costs TOTAL EXPENDITURES 9,175 53,552 11,500 - 3,326 (36,740)500 16,000 34,034 37,360 620 1,120 37,360 620 1,120 17,120ENDING FUND BALANCE EXCESS (DEFICIENCY) BEGINNING FUND BALANCE COURT TECHNOLOGY Revenue & Expenditure Projections Fiscal Year 2022-2023 70 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget REVENUES Juvenile Case Manager Fee 23,043 40,488 28,217 Investment Income TOTAL REVENUES 23,043 40,488 28,217 - EXPENDITURES Personnel Services --100 - TOTAL EXPENDITURES --100 - 12,986 40,488 28,117 - -12,986 53,474 81,591 12,986 53,474 81,591 81,591ENDING FUND BALANCE JUVENILE CASE MANAGER FUND Revenue & Expenditure Projections Fiscal Year 2022-2023 EXCESS (DEFICIENCY) BEGINNING FUND BALANCE 71 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget REVENUES Commercial Vehicle Fee/Weight 300 4,060 4,000 Investment Income TOTAL REVENUES 300 4,060 4,000 - EXPENDITURES Personnel Services ---- Contractual Services -- Supplies -- Maintenance -- Capital Outlay -- TOTAL EXPENDITURES ---- 300 4,060 4,000 - 300 4,360 8,360 300 4,360 8,360 8,360ENDING FUND BALANCE COMMERCIAL VEHICLE FUND Revenue & Expenditure Projections Fiscal Year 2022-2023 EXCESS (DEFICIENCY) BEGINNING FUND BALANCE 72 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget REVENUES Court Time Payment Fee 33,838 2,400 1,600 Investment Income ---- Transfer In - General Fund ---- TOTAL REVENUES 33,838 2,400 1,600 - EXPENDITURES Personnel Services ---- Contractual Services ---- Supplies ---- Maintenance -7,125 6,000 Capital Outlay ---- TOTAL EXPENDITURES -7,125 6,000 - 33,838 (4,725)(4,400)- 33,838 29,113 24,713 33,838 29,113 24,713 24,713ENDING FUND BALANCE COURT TIME PAYMENT FUND Revenue & Expenditure Projections Fiscal Year 2022-2023 EXCESS (DEFICIENCY) BEGINNING FUND BALANCE 73 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget REVENUES Municipal Jury Fee ---- TOTAL REVENUES ---- EXPENDITURES Personnel Services --- Contractual Services ---- Supplies ---- Maintenance ---- Capital Outlay ---- TOTAL EXPENDITURES ---- ---- --- ----ENDING FUND BALANCE MUNICIPAL JURY FUND Revenue & Expenditure Projections Fiscal Year 2022-2023 EXCESS (DEFICIENCY) BEGINNING FUND BALANCE 74 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget REVENUES 0 0 1,005,206 1,238,964 1,000,000 1,000,000 Reimbursement Tribute PTNRS 10,572 1,005,206 1,249,536 1,000,000 1,000,000 TOTAL REVENUES & TRANSFERS 1,005,206 1,249,536 1,000,000 1,000,000 EXPENDITURES Contractual Servics 3,015 36,575 0 0 Capital Outlay 171,683 1,259,243 450,000 1,000,000 TOTAL EXPENDITURES 174,698 1,295,818 450,000 1,000,000 TRANSFERS OUT 50,000 50,000 50,000 50,000 ---- Projects to be determined --- 100,000 100,000 100,000 100,000 TOTAL TRANSFERS OUT 150,000 150,000 150,000 150,000 324,698 1,445,818 600,000 1,150,000 680,508 (196,282)400,000 (150,000) 469,190 1,149,698 953,416 1,353,416 1,149,698 953,416 1,353,416 1,203,416 TOTAL EXPENDITURES & TRANSFERS EXCESS (DEFICIENCY) BEGINNING FUND BALANCE ENDING FUND BALANCE TOTAL REVENUES Transfer - General Fund Transfer - Utility CIP Transfer - Utility Fund Storm Water Utility Fees STORM WATER UTILITY FUND Revenue & Expenditure Projections Fiscal Year 2022-2023 75 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget IMPACT FEES Water Impact Fees 718,720 401,177 400,000 400,000 Sewer Impact Fees 353,857 199,868 200,000 200,000 Investment Income ---- TOTAL REVENUES 1,072,577 601,045 600,000 600,000 EXPENDITURES Water Impact Fee Reimbursement ---- Sewer Impact Fee Reimbursement 107,281 231,272 125,000 240,000 Contractual Services - Water Master Plan ---- TOTAL EXPENDITURES 107,281 231,272 125,000 240,000 TRANSFERS OUT: Transfer - Capital Project Admin 300,000 --- Transfer - Utility Revenue Debt Service 1,000,000 1,000,000 750,000 750,000 TOTAL TRANSFERS OUT 1,300,000 1,000,000 750,000 750,000 TOTAL EXPENDITURES & TRANSFERS 1,407,281 1,231,272 875,000 990,000 EXCESS (DEFICIENCY)(334,704)(630,227)(275,000)(390,000) BEGINNING FUND BALANCE 2,039,021 1,704,317 1,074,090 799,090 ENDING FUND BALANCE 1,704,317 1,074,090 799,090 409,090 WATER/SEWER IMPACT FEES FUND Revenue & Expenditure Projections Fiscal Year 2022-2023 76 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget HOTEL/MOTEL TAXES Taxes 849,664 1,044,986 900,000 1,000,000 Miscellaneous 1,486 --- 851,150 1,044,986 900,000 1,000,000 TRANSFERS IN Transfer from - General Fund 115,000 115,000 115,000 400,000 TOTAL TRANSFERS IN 115,000 115,000 115,000 400,000 TOTAL REVENUES & TRANSFERS 966,150 1,159,986 1,015,000 1,400,000 EXPENDITURES Communications 112,836 115,232 120,313 128,424 7,176 9,242 12,940 12,940 11,277 2,589 1,460 1,460 234,566 321,742 346,415 396,475 Contractual Services 233,231 790,155 300,000 662,106 6,646 15,357 7,200 9,300 77,259 634,991 252,000 - 108,123 5,697 -- 791,114 1,895,005 1,040,328 1,210,705 TRANSFERS OUT Transfer to CIP ---- Transfer to Special Event 450,000 450,000 200,000 200,000 TOTAL TRANSFERS OUT 450,000 450,000 200,000 200,000 TOTAL EXPENDITURES & TRANSFERS 1,241,114 2,345,005 1,240,328 1,410,705 OH COST 35,688 35,691 35,691 35,691 (310,652)(1,220,710)(261,019)(46,396) 1,912,754 1,602,102 381,392 120,373 1,602,102 381,392 120,373 73,977 EXCESS (DEFICIENCY) BEGINNING FUND BALANCE ENDING FUND BALANCE Personnel Services Contractual Services Supplies CVB Personnel Services Capital Items TOTAL EXPENDITURES Supplies NFM HOT Reimbursements TOTAL REVENUES HOTEL/MOTEL TAX FUND Revenue & Expenditure Projections Fiscal Year 2022-2023 77 2019-2018 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget CHARGES FOR SERVICES 236,932 310,022 240,000 300,000 Concession Revenues 640 213 1,000 - Tribute Lease -239,375 -220,000 Old American Lease -35,855 -- Blue Sky 12,000 12,090 12,000 12,000 Marine Quest 138,905 195,395 90,000 90,000 Mitigation Fees - 116 388,593 792,950 343,000 622,000 TOTAL REVENUES & TRANSFERS 388,593 792,950 -343,000 622,000 EXPENDITURES 9,631 20,000 25,000 47,751 78,042 67,355 86,850 4,698 5,378 11,550 13,850 14,906 162,845 35,650 35,650 Non-Capital - Other Equipment -276,076 -- 198,076 -330,000 - 265,431 531,972 -464,555 161,350 TRANSFERS OUT 35,000 35,000 35,000 35,000 TOTAL TRANSFERS OUT 35,000 35,000 -35,000 35,000 300,431 566,972 -499,555 196,350 88,162 225,978 -(156,555)425,650 963,300 1,051,462 -1,277,440 -1,120,885 1,051,462 1,277,440 -1,120,885 1,546,535 Fees & Permits LAKE PARKS FUND Revenue & Expenditure Projections Fiscal Year 2022-2023 Investment Income Miscellaneous TOTAL REVENUES Contractual Services Supplies Part Time Temporary Personel Maintenance ENDING FUND BALANCE Capital Outlay TOTAL EXPENDITURES Transfer to Parks Fund TOTAL EXPENDITURES & TRANSFERS EXCESS (DEFICIENCY) BEGINNING FUND BALANCE 78 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget REVENUES Donations & Sponsorships 11,290 13,102 12,000 13,000 29,940 17,102 50,000 17,000 41,230 30,204 62,000 30,000 TRANSFERS IN 40,000 40,000 345,000 400,000 450,000 450,000 200,000 200,000 490,000 490,000 545,000 600,000 TOTAL REVENUES & TRANSFERS 531,230 520,204 607,000 630,000 EXPENDITURES Personnel 119,312 129,420 137,041 140,873 Supplies --1,540 3,000 Christmas -5,374 5,000 7,500 Christmas Light Show Supplemental 49,631 47,798 50,000 50,000 Christmas Light Show Base 4,895 --- Liberty by The Lake 36,428 73,868 91,500 96,000 American Heroes 200,065 208,500 208,500 213,000 Parent Child Event 4,765 5,666 5,350 6,550 Halloween Campout 7,195 7,981 6,000 6,000 Easter Egg Hunt 2,727 4,091 4,500 6,000 Event Marketing 383 2,996 3,500 3,500 Arbor Day 113 1,500 2,500 2,500 Movies In The Park 728 5,304 6,000 6,000 Kids Chase/Up, Up & Away(15-16)2,285 2,681 3,000 4,000 Back To School 1,700 2,161 1,900 1,900 Bow Wow Pow Wow -1,425 1,800 1,800 Road Runners Club -10,000 10,000 10,000 N TX Food Pantry 5,000 1,300 5,000 5,000 Chamber Golf Tourney -15,000 6,000 Lakeside Community Theatre 12,000 12,000 12,000 12,000 Metro Relief ---- TOTAL EXPENDITURES 447,227 522,065 570,131 581,623 OH COST 35,688 35,670 35,670 35,670 48,315 (37,531)1,199 12,707 (7,394)40,921 3,390 4,589 40,921 3,390 4,589 17,296ENDING FUND BALANCE TOTAL REVENUES Transfer from - General Fund Transfer from - Hotel/Motel Tax TOTAL TRANSFERS IN EXCESS (DEFICIENCY) BEGINNING FUND BALANCE Event Revenues SPECIAL EVENTS FUND Revenue & Expenditure Projections Fiscal Year 2022-2023 79 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget REVENUES One Dollar Donation 298 287 300 300 Recycling Rebate Donation 107 -175 - Investment Income ---- TOTAL REVENUES 405 287 475 300 EXPENDITURES Contractual Services ---- TOTAL EXPENDITURES ---- 405 287 475 300 9,442 9,847 10,134 10,609 9,847 10,134 10,609 10,909 BEGINNING FUND BALANCE ENDING FUND BALANCE EXCESS (DEFICIENCY) CITIZEN DONATION FUND Revenue & Expenditure Projections Fiscal Year 2022-2023 80 2019-2020 2020-2021 2021-2022 2022-2023 Actual Actual Budget Budget REVENUES Child Safety Fund Revenue 1,670 1,756 1,500 1,700 Denton County Child Safety Fund 46,631 49,195 46,000 49,000 48,301 50,951 47,500 50,700 TOTAL REVENUES & TRANSFERS 48,301 50,951 47,500 50,700 EXPENDITURES Child Advocacy Center 38,300 30,535 39,525 59,500 TOTAL EXPENDITURES 38,300 30,535 39,525 59,500 TRANSFER OUT Transfer - General Fund 10,000 10,000 10,000 10,000 TOTAL TRANSFER OUT 10,000 10,000 10,000 10,000 48,300 40,535 49,525 69,500 1 10,416 (2,025)(18,800) 34,272 34,273 44,689 42,664 34,273 44,689 42,664 23,864ENDING FUND BALANCE TOTAL REVENUES TOTAL EXPENDITURES & TRANSFERS CHILD SAFETY FUND Revenue & Expenditure Projections Fiscal Year 2022-2023 EXCESS (DEFICIENCY) BEGINNING FUND BALANCE 81 2019-2020 2020-2021 2022-2023 2022-2023 Actual Actual Budget Budget REVENUES Donations ---- ---- TRANSFERS IN --10,000 10,000 --10,000 10,000 TOTAL REVENUES & TRANSFERS --10,000 10,000 EXPENDITURES Personnel 2,425 524 2,200 2,000 Contractual Services 215 --- Supplies 4,510 4,339 8,700 8,000 Maintenance ---- TOTAL EXPENDITURES 7,150 4,863 10,900 10,000 TRANSFERS OUT General Fund 73,000 0 0 0 80,150 4,863 10,900 10,000 (80,150)(4,863)(900)- 86,846 6,696 1,833 933 - 6,696 1,833 933 933 KEEP THE COLONY BEAUTIFUL Revenue & Expenditure Projections Fiscal Year 2022-2023 BEGINNING FUND BALANCE ENDING FUND BALANCE TOTAL REVENUES Transfer In - General Fund TOTAL TRANSFERS IN TOTAL EXPENDITURES & TRANSFERS EXCESS (DEFICIENCY) 82 2019-2020 2020-2021 2021-2022 Actual Actual Budget REVENUES 2,441,350 -- 936 -- 2,442,286 -- TOTAL REVENUES & TRANSFERS 2,442,286 -- TRANSFERS OUT --- --- TOTAL TRANSFERS OUT --- --- 2,442,286 -- --- 2,442,286 -- Interest CARES ACT Revenue & Expenditure Projections Fiscal Year 2022-2023 Cares Fund ENDING FUND BALANCE TOTAL REVENUES Transfer - General Fund Transfer - Utility Fund TOTAL EXPENDITURES & TRANSFERS EXCESS (DEFICIENCY) BEGINNING FUND BALANCE 83 2022-2023 Budget - - - - - - - - - - - 84 GF Parks UF GDS TSD EDC CDC Lake Parks Special Events CVB Child Safety Cares Act Cap Admin Storm Water Impact FeesKTB Trinity North Totals Transfer In 763,851 3,536,668 100,000 0 7,056,118 0 0 0 600,000 400,000 0 0 0 0 10,000 0 0 12,466,637 Transfer Out 4,011,823 0 6,000,000 0 0 756,100 553,714 35,000 0 200,000 10,000 0 0 150,000 750,000 0 12,466,637 0 Unbudgete d funds Utility Cap, G.F. Special Cap 85 Revenue Transfer In Expenditures Transfer Out General Fund 21,741,019 44,404,842 704,012 54,223,320 3,506,823 (5,929,828)(6,691,461)15,811,191 General Fund 11,239,766 (4,571,424) Parks 1,184,565 849,700 3,281,668 3,411,835 (294,865)1,014,398 889,700 Parks Fund 998,819 109,119 Utility 3,948,062 22,947,442 100,000 12,295,090 6,000,000 (746,278)5,498,630 3,201,784 Utility Fund 6,669,841 3,468,057 General Debt 3,466,169 9,731,478 -7,827,244 -1,904,234 -5,370,403 General Debt Service 2,499,915 (2,870,487) Tax Supported Debt 5,163,648 400,000 7,055,759 7,993,588 -(537,829)-4,625,819 Utility Tax Debt 1,707,689 (2,918,130) EDC 12,312,256 4,015,000 -2,787,530 753,218 402,872 71,380 12,715,128 Economic Development - 4A 9,369,584 (3,345,544) CDC 6,281,803 4,004,000 -3,666,422 496,398 (194,512)35,692 6,087,291 Community Development - 4B 2,712,772 (3,374,519) PID 928,859 902,327 -1,182,261 (311,334)31,400 617,525 PID 402,176 (215,349) Lake Parks 1,277,440 343,000 -464,555 35,000 (156,555)-1,120,885 Lake Parks 767,285 (353,600) Special Events 3,390 62,000 545,000 570,131 1,199 35,670 4,589 Special Events Fund 57,383 52,794 CVB 381,392 900,000 115,000 1,040,328 200,000 (261,019)35,691 120,373 Hotel/Motel Tax Fund 1,493,503 1,373,130 Court Security 284,708 12,000 -20,900 -(8,900)-275,808 Court Security 262,961 (12,847) Court Technology 620 12,000 -11,500 -500 -1,120 Court Technology 10,726 9,606 Juvenile Case Mgr 32,523 10,000 -6,494 -3,506 36,029 Juvenile Case Mgr 28,770 (7,259) Commercial Vehicle 300 10,000 -52,000 -(42,000)(41,700)Commercial Vehicle -41,700 Court Time Pmt 33,838 1,300 -7,000 -(5,700)28,138 Court Time Pmt 34,108 5,970 Municipal Jury Fund -120 -145 -(25)(25)Municipal Jury Fund -25 Child Safety 44,689 47,500 -39,525 10,000 (2,025)-42,664 Child Safety Fund 39,484 (3,180) Trinity North 21,503 211,075 20,000 219,359 -11,716 33,219 Trinity North (6,731)(39,950) Cares Act -------Cares Act 2,440,350 2,440,350 Capital Improvements --------Capital Projects Administration Fund18,318 18,318 Storm Water 953,416 1,000,000 -450,000 150,000 400,000 1,353,416 Storm Water Utility Fund 519,190 (834,226) Impact Fees 1,074,090 600,000 -125,000 750,000 (275,000)799,090 Water/Sewer Impact Fee Fund 1,569,021 769,931 Citizen Donation 10,134 475 ---475 10,609 Citizen Donation Fund 10,273 (336) Keep The Colony Beautiful 1,833 -10,000 10,900 -(900)933 Keep The Colony Beautiful 5,146 4,213 Unbudgeted funds Utility Cap, G.F. Special Cap ------ 59,146,257 90,464,259 11,831,439 96,405,127 11,901,439 (6,042,268)31,400 53,103,989 59,145,957 90,464,259 11,901,439 300 -(70,000)11,901,439 (6,010,868)53,103,989 53,103,989 11,831,439 --53,104,014 -(25) 96,370,888 34,239 Other adjustment/ OVERHEAD Beginning Balance Excess/ Deficiency Ending Fund Balance 86 Revenue Transfer In Expenditures Transfer Out General Fund 15,811,191 51,504,528 763,851 57,905,344 4,011,823 (3,987,327)(5,661,461)11,823,864 Parks 889,700 925,200 3,536,668 3,591,182 (143,712)1,014,398 745,988 Utility 3,201,784 23,958,614 100,000 12,944,081 6,000,000 665,903 4,448,630 3,867,687 General Debt 5,370,403 6,631,880 -7,894,915 -(1,263,035)-4,107,367 Tax Supported Debt 4,625,819 450,000 7,056,118 8,244,188 -(738,070)-3,887,749 EDC 12,715,128 5,000,000 -3,853,296 756,100 299,224 91,380 13,014,352 CDC 6,087,291 5,000,000 -456,721 553,714 3,953,873 35,692 10,041,164 PID 617,525 904,500 -1,195,768 (322,668)31,400 294,857 Lake Parks 1,120,885 622,000 -161,350 35,000 425,650 -1,546,535 Special Events 4,589 30,000 600,000 581,623 12,707 35,670 17,296 CVB 120,373 1,000,000 400,000 1,210,705 200,000 (46,396)35,691 73,977 Court Security 275,808 20,000 -3,500 -16,500 -292,308 Court Technology 1,120 16,000 ---16,000 -17,120 Juvenile Case Mgr 36,029 28,217 -100 -28,117 64,146 Commercial Vehicle (41,700)4,000 ---4,000 (37,700) Court Time Pmt 28,138 1,600 -6,000 -(4,400)23,738 Municipal Jury Fund (25)-----(25) Child Safety 42,664 50,700 -59,500 10,000 (18,800)-23,864 Trinity North 33,219 33,650 -149,000 -(115,350)(82,131) Cares Act ------- Capital Improvements -------- Storm Water 1,353,416 1,000,000 -1,000,000 150,000 (150,000)1,203,416 Impact Fees 799,090 600,000 -240,000 750,000 (390,000)409,090 Citizen Donation 10,609 300 ---300 10,909 Keep The Colony Beautiful 933 -10,000 10,000 --933 Unbudgeted funds Utility Cap, G.F. Special Cap ----- 53,103,989 97,781,189 12,466,637 99,507,273 12,466,637 (1,757,484)31,400 51,346,504 53,103,989 97,781,189 12,466,637 ---12,466,637 (1,726,084)51,346,504 51,346,504 12,466,637 --51,346,504 -- 99,538,673 Other adjustment/ OVERHEAD Beginning Balance Excess/ Deficiency Ending Fund Balance 87 (31,400) 88 18-19 19-20 20-21 21-22 Actual Actual Budget Budget REVENUES: General Fund 40,651,303 43,968,682 44,404,842 51,504,528 41,205,499 Parks Fund 544,925 885,239 849,700 925,200 Utility Fund 20,391,091 21,845,888 22,947,442 23,958,614 General Debt Service 17,640,755 17,289,823 9,731,478 6,631,880 Utility Tax Debt 507,600 482,924 400,000 450,000 Economic Development - 4A 3,599,539 4,568,861 4,015,000 5,000,000 Community Development - 4B 3,581,156 4,568,080 4,004,000 5,000,000 PID 1,130,603 1,673,147 902,327 904,500 1,061,109 Lake Parks 388,593 792,950 343,000 622,000 Special Events Fund 41,230 30,204 62,000 30,000 Hotel/Motel Tax Fund 851,150 1,044,986 900,000 1,000,000 Court Security 11,415 20,414 12,000 20,000 Court Technology 12,501 16,812 12,000 16,000 Juvenile Case Mgr -23,043 10,000 28,217 0 Commercial Vehicle --10,000 4,000 Court Time Pmt --1,300 1,600 0 Municipal Jury Fund --120 - Child Safety Fund 48,301 50,951 47,500 50,700 Trinity North -85,415 211,075 33,650 360,285 Cares Act --0 -0 Capital Projects Administration Fund ---- Storm Water Utility Fund 1,005,206 1,249,536 1,000,000 1,000,000 Water/Sewer Impact Fee Fund 1,072,577 601,045 600,000 600,000 Keep the Colony Beautiful ---- Citizen Donation 405 287 475 300 TOTAL REVENUES 91,478,350 99,198,287 90,464,259 97,781,189 84,041,226 89 TRANSFERS IN: General Fund 778,568 702,303 704,012 763,851 Parks Fund 3,401,670 3,166,668 3,281,668 3,536,668 Utility Fund 100,000 100,000 100,000 100,000 General Debt Service ---- Utility Tax Debt 7,726,445 9,025,714 7,055,759 7,056,118 Special Events Fund 490,000 490,000 545,000 600,000 Hotel/Motel Tax Fund 115,000 115,000 115,000 400,000 Trinity North --20,000 - Capital Projects Administration Fund 300,000 350,000 -- Keep The Colony Beautiful --10,000 10,000 Unbudgeted funds Utility Cap, G.F. Special Cap - TOTAL TRANSFERS IN 12,911,683 13,949,685 11,831,439 12,466,637 TOTAL REVENUES & TRANSFERS IN ########## 113,147,972 #################### EXPENDITURES/EXPENSES: General Fund 42,457,438 44,191,926 47,531,859 52,243,883 Parks Fund 2,666,806 3,144,201 4,426,233 4,605,580 Utility Fund 9,861,928 11,085,135 17,793,720 17,392,711 General Debt Service 15,384,915 7,555,929 7,827,244 7,894,915 Utility Tax Debt 7,870,415 7,928,676 7,993,588 8,244,188 Economic Development - 4A 1,591,210 1,572,284 2,858,910 3,944,676 Community Development - 4B 423,292 425,427 3,702,114 492,413 PID 1,576,448 1,047,791 1,213,661 1,227,168 Lake Parks 265,431 531,972 464,555 161,350 Special Events Fund 447,227 522,065 605,801 617,293 Hotel/Motel Tax Fund 791,114 1,895,005 1,076,019 1,246,396 Court Security 0 2,282 20,900 3,500 Court Technology 9,175 53,552 11,500 - Juvenile Case Mgr ---100 Commercial Vehicle ---- Court Time Pmt ---6,000 90 Municipal Jury Fund ---- Child Safety Fund 38,300 30,535 39,525 59,500 Trinity North -65,115 219,359 149,000 Cares Act ---- Capital Projects Administration Fund 146,750 172,626 -- Storm Water 174,698 1,295,818 450,000 1,000,000 Water/Sewer Impact Fee Fund 107,281 231,272 125,000 240,000 Keep The Colony Beautiful 7,150 4,863 10,900 10,000 TOTAL EXPENDITURES/EXPENSES 83,819,578 81,756,474 96,370,888 99,538,673 99,507,273 31,400 91 adjustments -3,199,343 VCC - $1,006,555, Ambulance - $300K, Court Fines-$300K 158,782 -10,000 new fund -1,300 new fund 149,210 0 new fund -6,423,033 -2,902,651 92 0 0 0 0 0 93 94 Agenda Item No:5.2 CITY COUNCIL Agenda Item Report Meeting Date: August 16, 2022 Submitted by: David Cranford Submitting Department: Finance Item Type: Discussion Agenda Section: Subject: Conduct a public hearing and discuss the proposed 2022-2023 tax rate not to exceed $0.6475 cents per $100 valuation for the taxable value of real and personal property located within the City of The Colony, and announce that the tax rate will be voted on September 6th, 2022 at 6:30 p.m. at The Colony City Hall, 6800 Main Street (Miller) Suggested Action: Tax rate is being reduced by 1/4 a cent from $.65 to $.6475. Will reduce revenues by about $156,500 Attachments: 95 Agenda Item No:5.3 CITY COUNCIL Agenda Item Report Meeting Date: August 16, 2022 Submitted by: David Cranford Submitting Department: Finance Item Type: Ordinance Agenda Section: Subject: Discuss and consider a resolution accepting a preliminary service and assessment plan for the City of The Colony Public Improvement District, and assessment roll on properties located within the Public Improvement District No. 1. for the Fiscal Year 2022-23, and schedule a public hearing for September 6, 2022, concerning the levy of special assessments. (Maurina) Suggested Action: Attachments: 2022-23 Preliminary PID #1 Budget (Autosaved).xlsx.pdf 2022-23 Preliminary PID #1 Assessment Workbook.xlsx.pdf PID #1 Preliminary Annual Service and Assessment Plan Update.docx.pdf Res. 2022-xxx Preliminary PID Assessment Plan.pdf 96 668-PID - GRANDSCAPE 20/21 21/22 3/31/2022 22/23 PRIOR YEAR CURRENT YEAR CURRENT YEAR PROPOSED NOTES ACTUAL BUDGET ACTUALS BUDGET EXPENSES 61-PERSONNEL SERVICES 635-6110-0011 SALARIES - DEVELOPMENT SVS 106,846.15 - - 635-6110-0067 SALARIES - TRAFFIC MGMT STAFF 30,900.40 31,210.00 32,971.20 40% - Signal Technician salary ($77,251) 635-6110-0067 SALARIES - PUBLIC WORKS - - - 635-6110-0075 SALARIES - POLICE DEPT.167,735.36 169,416.00 174,242.00 Two officers (Step 6 -$83,867.68/ea ) 635-6111-0067 SALARIES, OVERTIME - PB WKS - - - 635-6111-0075 SALARIES, OVERTIME - POLICE - - - 635-6114-0011 HOSPITALIZATION INSURANCE - GEN ADM 3,845.00 - - 635-6114-0067 HOSPITALIZATION INSURANCE - TRFC MGMT 6,977.88 4,614.00 5,522.00 635-6114-0075 HOSPITALIZATION INSURANCE - PD 23,070.00 23,070.00 27,610.00 635-6115-0011 SOCIAL SECURITY TAXES - GEN ADM 8,173.73 - - 635-6115-0067 SOCIAL SECURITY TAXES - TRFC MGMT - 2,387.57 2,637.60 635-6115-0075 SOCIAL SECURITY TAXES - PD 12,831.76 12,960.32 13,940.00 635-6117-0011 RETIREMENT CONTRIBUTIONS - GEN ADM 14,114.38 - - 635-6117-0067 RETIREMENT CONTRIBUTIONS - TRFC MGMT 4,081.94 4,122.84 4,493.60 635-6117-0075 RETIREMENT CONTRICUTIONS - PD 22,157.84 22,379.85 23,750.00 635-6118-0001 UNIFORMS - - - 400,734.44 270,160.58 285,166.40 62-CONTRACTUAL SERVICES 635-3210 PROFESSIONAL SERVICES - 635-6211 LEGAL SERVICES - - - 635-6212 AUDIT SERVICES 10,600.00 10,600.00 10,600.00 9/30/20 audit 635-6213 CONTRACTUAL SERVICES 221,294.33 270,000.00 270,000.00 American Landscape - monthly landscape and Menders monthly trash removal 635-6213-0001 CONTRACTUAL SERVICES - REPAIRS 71,886.15 75,000.00 90,000.00 Irrigation Repairs 635-6213-0002 CONTRACTUAL SERVICES - INSPEC/PLAN REVIEW - - 635-6213-0003 CONTRACTUAL SERVICES - INSP/PR - GARAGES 180.00 - 635-6213-0004 CONTRACTUAL SERVICES - INSP/PR - ANDRETTI'S - - 635-6213-0005 CONTRACTUAL SERVICES - INSP/PR - GALAXY 540.00 - 635-6213-0006 CONTRACTUAL SERVICES - INSP/PR - SCHEELS 5,580.00 - 635-6213-0007 CONTRACTUAL SERVICES - INSP/PR - TRUCK YARD 1,620.00 - 635-6213-0008 CONTRACTUAL SERVICES - INSP/PR - WINDMILL - - 635-6213-0009 CONTRACTUAL SERVICES - INSP/PR - GROTTO 180.00 - 635-6213-0010 CONTRACTUAL SERVICES - INSP/PR - RES TWR - - 635-6213-0011 CONTRACTUAL SERVICES - INSP/PR - HOMESTEAD 630.00 - 635-6213-0012 CONTRACTUAL SERVICES - INSP/PR - HOMEWOOD 13,100.00 - 635-6213-0015 CONTRACTUAL SERVICES - INSP/PR - - Total amount for all Insp/Plan Review 635-6236 ADVERTISING AND NOTICES - - - 635-6241 ELECTRICITY 143,351.35 160,000.00 160,000.00 635-6241-0002 ELECTRICITY - BOARDWALK - - - 635-6244 TELEPHONE SERVICES 482.88 500.00 500.00 Grande (cancelled) 635-6246 WATER SERVICE 108,680.62 170,000.00 170,000.00 635-6251 PROPERTY INSURANCE - - - 635-6275 EQUIPMENT RENTAL - - - 578,125.33 686,100.00 701,100.00 63-SUPPLIES 635-6342 WATER METERS & BOXES - - - Molly thinks we have all we need 635-6344 REPAIR MATERIALS - - - 635-6345-0002 CHEMICALS - BOARDWALK - - - 635-6372 NTGWCD FEES 578.90 1,000.00 1,000.00 635-6390 MISCELLANEOUS SUPPLIES - - - 635-6390-0075 MISCELLANEOUS SUPPLIES - PD - - - 578.90 1,000.00 1,000.00 64-MAINTENANCE 635-6420 STREET MAINTENANCE - 96,000.00 96,000.00 Bridge Repair 635-6423 RIGHT-OF-WAY MAINTENANCE - 16,000.00 20,000.00 635-6425 TRAFFIC & SIGN MAINTENANCE 58,974.75 80,000.00 90,000.00 635-6455 LAKE MAINTENANCE 12,663.30 23,000.00 27,000.00 Magnolia Fisheries & Chemicals 635-6470 OTHER EQUIPMENT MAINTENANCE - 10,000.00 10,000.00 635-6471 LANDSCAPE MAINTENANCE - 71,638.05 225,000.00 243,000.00 66-CAPITAL OUTLAY 635-6651 CAPITAL OUTLAY - COMPUTER HARDWARE - - - 635-6690 CAPITAL OUTLAY - OTHER EQP - - - - - - 67-OVERHEAD ALLOCATION 635-6705 GRANDSCAPE INSPECTIONS - - TOTAL OVERHEAD ALLOCATION - - - 1,051,076.72 1,182,260.58 1,230,266.40 TOTAL MAINTENANCE TOTAL CAPITAL OUTLAY TOTAL PID EXPENSES CITY OF THE COLONY BASE BUDGET WORKSHEET 2022-23 TOTAL PERSONNEL SERVICES TOTAL CONTRACTUAL SERVICES TOTAL SUPPLIES 8/8/2022 22-23 Preliminary PID #1 Budget (Autosaved) 97 Tax Parcel Notes Acreage Section %Overall %Section Base Budget Assessment Area Assessment Final Area Assessment 731,985.36$ 731,985.36$ 657618 NFM Building 81.99 76.29%33.74%558,439.37$ 558,439.37$ 657619 NFM Parking Lot 25.48 23.71%10.49%173,545.98$ 173,545.98$ 68,245.18$ 68,245.18$ 957987 Waterfront Parking 13.774 83.91%5.67%57,267.00$ 57,267.00$ 704832 Lava Cantina 0.675 4.11%0.28%2,806.39$ 2,806.39$ 957988 Windmills 0.506 3.08%0.21%2,103.75$ 2,103.75$ 957989 Akira Back 0.2976 1.81%0.12%1,237.31$ 1,237.31$ 957990 Open Pad Site 0.2717 1.66%0.11%1,129.62$ 1,129.62$ 957991 Open Pad Site 0.4838 2.95%0.20%2,011.45$ 2,011.45$ 957992 LSA Burger 0.4064 2.48%0.17%1,689.66$ 1,689.66$ 495,151.22$ 504,191.22$ 692390 Cheddar's 2.015 1.69%0.83%8,377.60$ 8,377.60$ 692391 Mi Cocina 2.105 1.77%0.87%8,751.78$ 8,751.78$ 674231 Hard 8 BBQ 3.386 2.84%1.39%14,077.69$ 14,077.69$ 692389 Cigars International 1.925 1.62%0.79%8,003.41$ 8,003.41$ 692387 Rock N Brews 1.903 1.60%0.78%7,911.94$ 7,911.94$ 692388 Bargain Way Access Road 1 0.301 0.25%0.12%1,251.44$ 1,251.44$ 692379 West 25 Shops 2.931 2.46%1.21%12,185.97$ 12,185.97$ 692380 Bargain Way Access Road 2 0.204 0.17%0.08%848.15$ 848.15$ 653844 Hampton Inn 2.683 2.25%1.10%11,154.88$ 11,154.88$ 653843 Homewood Suites 2.944 2.47%1.21%12,240.02$ 14,330.02$ 748393 Lifestyle Center Master 79.08935 66.41%32.55%328,823.12$ 332,623.12$ 753491 Live Grandscape Residential Tower 5.838885 4.90%2.40%24,275.84$ 24,275.84$ 753492 Live Grandscape Parking Garage 3 1.57376 1.32%0.65%6,543.09$ 6,543.09$ 674218 Scheel's Sporting Goods 3.645 3.06%1.50%15,154.51$ 18,304.51$ 732382 Truckyard 8.551 7.18%3.52%35,551.77$ 35,551.77$ Service Service Total Service % Final Assessment 1,304,422$ Traffic Management System 45,624.40$ 3.70850% Total Acreage Overall %Enhanced Police Services 239,542.00$ 19.47074% 242.979495 100.00%Enhanced Development Services -$ 0.00000% Street and Roadway Improvements 918,100.00$ 74.62611% Facility Acreage Section %Overall %Lake Maintenance 27,000.00$ 2.19465% 107.47 100.00%44.23%Total 731,985.36 Total 1,230,266.40$ 100.00000% Waterfront Acreage Section %Overall % 16.4145 97.52%6.76%Total 68,245.18 Description of Public Improvements Service total Facility Waterfront Related Developments Traffic Management System 45,624.40$ 45,624.40$ Related Development Acreage Section %Overall %Enhanced Police Services 239,542.00$ 239,542.00$ 119.094995 100.00%49.01%Total 495,151.22 Enhanced Development Services -$ -$ -$ -$ 1,295,382 Street and Roadway Improvements 918,100.00$ 406,076.27$ 62,022.32$ 450,001.41$ Lake Maintenance 27,000.00$ 11,942.12$ 1,823.99$ 13,233.89$ Total 1,230,266.40$ 703,184.79$ 63,846.31$ 463,235.30$ Total 1,295,382 1. Calculate Final Base Budget Total 1,230,266$ Total Enhanced Development Services 9,040 Total Assessment 1,304,422$ 2. Calculate 90 Day Operating Cost $303,353 3. Add Final Base Budget + 90 day Operating cost $1,533,620 4. Add Expected (excess)/short fall at year end -$238,238 5. Calculate new Budget total for assessment from inclusion of step 4 $1,295,382 6. Determine total direct Enhanced Development Services $9,040 7. Add in step 6 to create Final Total Assessment $1,304,422 Facility Property Waterfront Property Related Development Property Enhanced Police and Traffic Management services 285,166.40 Step by Step Assessment Breakdown 1,010,215.36 Operations Balance Budget Total Area Assessment Area Assessment Area Assessment 98 1775.016\108190.5 City of The Colony Public Improvement District No. 1 Preliminary Annual Service and Assessment Plan Update (Assessment Year October 1, 2022 to September 30, 2023) Approved by City Council on August 16th, 2022 99 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 2 1775.016\108190.5 SECTION 1 INTRODUCTION Unless otherwise defined, all capitalized terms used in this "City of The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update (Assessment Year October 1, 2022 to September 30, 2023)" (this "SAP Update") shall have the meanings set forth in that certain City of The Colony Public Improvement District No. 1 Amended and Restated Service and Assessment Plan, originally approved on February 7, 2013, recorded in the real property records of Denton County, Texas as Document No. 2013-20487, and as updated and most recently amended, restated, and consolidated on January 19, 2021 (the "Service and Assessment Plan") by Ordinance No. 2021-2430 adopted by the City Council on January 19, 2021. Unless otherwise defined, all references to "Section" mean a section of this SAP Update, and all references to "Exhibit" mean an exhibit to this SAP Update. 1.1 On October 8, 2012, the City Council of the City of The Colony, Texas (the "City Council" and the "City") passed and approved Resolution No. 2012-073 creating The Colony Public Improvement District No. 1 (the "District") pursuant to Chapter 372, Texas Local Government Code, as amended (the "Act"). The District includes within its boundaries approximately 439.12 contiguous acres located within the corporate limits of the City south of and adjacent to the Sam Rayburn Tollway (State Highway 121), north of and adjacent to Plano Parkway, and west of Spring Creek Parkway which property is described by metes and bounds on Exhibit A and depicted on Exhibit A-1 (the "Property"). 1.2 The Act governs the process by which the Public Improvements Cost is allocated to and assessed against the Property. This process requires the preparation of an ongoing service plan (a "Service Plan"), an assessment plan (an "Assessment Plan"), and an assessment roll (an "Assessment Roll"). 1.3 The Act requires the preparation, and the presentment to, and review and approval by, the City Council, of a Service Plan that must: (1) cover a period of at least five years; (2) define the annual indebtedness and projected costs of the Public Improvements; and (3) include a copy of the notice form required by Section 5.014 of the Texas Property Code, as amended. The Service Plan must be reviewed and updated at least annually to determine the annual budget for the Public Improvements. The City Council may approve the Service Plan only by Ordinance; and, upon approval, a copy of the Service Plan must be filed with the County Clerk of Denton County, Texas, the County in which all of the District is located, not later than the seventh (7th) day after the date of such approval. The Service Plan is contained in Section 4. 1.4 The Act requires the Service Plan to include an Assessment Plan. The Assessment Plan assesses the Public Improvements Cost against the Property on the basis of the special benefits conferred upon the Property by the Public Improvements. The Public Improvements Cost may be assessed in any manner that results in imposing equal shares of the cost on Parcels similarly benefited. The special benefit of the Public Improvements is being apportioned by this Service and Assessment Plan to the Property in the amount of the Public Improvements Cost. The Assessment Plan is contained in Section 5. 1.5 The Act also requires the City Council to review and update the Service Plan annually for the purpose of determining the annual budget for the Public Improvements. The annual budget for 100 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 3 1775.016\108190.5 the Public Improvements is contained in Section 6. The Act states that the Service Plan may be amended or updated only by Ordinance. Upon approval of an amendment or update of the Service Plan, including the notice form required by Section 5.014 of the Texas Property Code, as amended, the City Council shall file a copy of the amended or updated Service Plan with the County Clerk of Denton County, Texas, the County in which all of the District is located, not later than the seventh (7th) day after the date of such approval. 1.6 The Act requires the preparation of an Assessment Roll after the total Public Improvements Cost has been determined. The Assessment Roll must state the assessment against each Parcel determined by the method of assessment chosen by the City Council in the Assessment Plan. The assessment against a Parcel must be sufficient to pay the share of the Public Improvement s Cost allocated to the Parcel and cannot exceed the special benefit conferred upon the Parcel. The Assessment Roll is contained in Section 7. 1.7 A summary of the chronological history of City Council actions for the District is attached as Exhibit F. SECTION 2 2013 FACILITY PUBLIC IMPROVEMENTS 2.1 The portion of the Property described as Grandscape Addition Lot 1/Block A consisting of 81.99 acres and identified as Denton Central Appraisal District ("Denton CAD") Tax Parcel No. 657618, and the portion of the Property described as Grandscape Additional Lot 2/Block A consisting of 25.48 acres and identified by Denton CAD Tax Parcel No. 657619 (collectively, the "Facility Property") is developed with a mixed-use facility which includes approximately 1,280,000 square feet for warehouse and distribution uses, approximately 25,000 square feet for a regional corporate headquarters, approximately 546,000 square feet for retail sales to the general public and surface and structured parking (collectively, the "Facility"). The development of the Facility Property required construction of the 2013 Public Improvements that specially benefit the Facility Property. 2.2. In connection with the 2013 Project Infrastructure Bonds to finance a portion of the costs of the 2013 Public Improvements, the City approved the Original Service and Assessment Plan for the District by adopting the 2013 Assessment Ordinance on February 7, 2013. The 2013 Assessment Ordinance levied an Assessment in the amount of $83,400,000.00 (the "2013 Facility Public Improvement Assessment") against the Facility Property for the portion of the 2013 Public Improvements Cost that the City Council determined conferred a special benefit on the Facility Property. As authorized by the Act, the 2013 Assessment Ordinance deferred the assessment of the remainder of the 2013 Public Improvements Cost in the amount of $11,400,000.00 for the portion of the 2013 Public Improvements that specially benefit the Related Development Property (the "2013 Related Development Deferred Assessment") until the portion of the Related Development Property that is specially benefited by the 2013 Public Improvements could be identified. The 2013 Assessment Ordinance also deferred the assessment of the Related Development Public Improvements Cost against the Related Development Property until the portion(s) of the Related Development Property that are specially benefited by the Related Development Public Improvements could be identified. As described below, the City has levied 101 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 4 1775.016\108190.5 and intends to continue levying Additional Facility Assessments against the Facility Property for costs of Additional Facility Public Improvements (that do not include the 2013 Public Improvements) and has levied and intends to continue levying Assessments against the Related Development Property for a portion of the costs of the Related Development Public Improvements (that do not include the 2013 Public Improvements). 2.3 The 2013 Facility Public Improvements have been constructed by or on behalf of the Corporations using, in part, the net proceeds of the 2013 Project Infrastructure Bonds. The 2013 Facility Public Improvements fall into the following categories: (i) water, wastewater, and drainage facilities or improvements, including sanitary sewer facilities, storm water detention and retention facilities, and utility relocations related to such improvements; (ii) street and roadway improvements, including related traffic signalization, signage, sidewalks, curbs, gutters, streetscape, landscaping, drainage improvements, and utility relocations related to such street and roadway improvements; (iii) mass transit facilities; (iv) park improvements, (v) landscaping; (vi) lighting and signage; (vii) pedestrian malls; and (viii) site improvements for any of the foregoing, including, but not limited to, grading, erosion control, wetlands mitigation, and floodplain reclamation. The 2013 Public Improvements are more particularly described in the engineering report titled PUBLIC IMPROVEMENTS REPORT, The City of The Colony Public Improvement District No. 1, The Colony, Texas dated November 30, 2012, prepared by Graham Associates, Inc. (the "2013 Official Report"), a copy of which report is attached as Exhibit B to the Service and Assessment Plan. All 2013 Facility Public Improvements, and portions of the Property on which the 2013 Facility Public Improvements have been constructed, will remain owned by the City. 2.4 The 2013 Facility Public Improvement Assessment was pledged, on a pro-rata basis (based on the par amount of each series of 2013 Project Infrastructure Bonds issued as a percentage of the total par amount of all 2013 Project Infrastructure Bonds), as additional security for each series of 2013 Project Infrastructure Bonds in the event of a Debt Service Shortfall. Assessment Revenue generated from the 2013 Facility Public Improvement Assessment, if collected by the City in the event of Debt Service Shortfall, that is pledged to pay Debt Service Shortfall for any one series of the 2013 Project Infrastructure Bonds is not pledged to pay Debt Service Shortfalls for any other series of 2013 Project Infrastructure Bonds. In connection with each series of 2013 Project Infrastructure Bonds, each respective issuer of the 2013 Project Infrastructure Bonds entered into a reimbursement agreement relating to each respective series of 2013 Project Infrastructure Bonds (such agreements are referred to collectively as the "2013 Reimbursement Agreements"). On January 19, 2021, the City issued its 2021 LGC Tax Refunding Bonds that refunded all of the outstanding 2013 LGC Tax Bonds; and, the City entered into a 2021 LGC Tax Bonds Reimbursement Agreement relating to the 2021 LGC Tax Refunding Bonds. The 2021 LGC Tax Bonds Reimbursement Agreement pledged the portion of the 2013 Facility Public Improvement Assessments previously allocated to the 2013 LGC Tax Bonds to the 2021 LGC Tax Refunding Bonds and replaced the 2013 LGC Tax Bonds Reimbursement Agreement in its entirety. Public Improvement Bonds secured in whole or in part by Assessments levied against Property in the District as additional security in the event of a Debt Service Shortfall, including the 2013 Project Infrastructure Bonds (but excluding the 2013 LGC Tax Bonds which were refunded by the 2021 LGC Tax Refunding Bonds) and the 2021 LGC Tax Refunding Bonds, are referred to collectively as "Project Infrastructure Bonds." The 2013 Reimbursement Agreements together with the 2021 LGC Tax Bonds Reimbursement Agreement are referred to collectively as the "Reimbursement Agreements." Assessment Revenue from the 2013 Facility Public Improvement Assessment 102 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 5 1775.016\108190.5 levied against the Facility Property as additional security for any series of Project Infrastructure Bonds will be collected in the event of a Debt Service Shortfall in Semi-Annual Installments and deposited into the PID Operating Account as described below in Section 5.9 below. SECTION 3 ADDITIONAL FACILITY IMPROVEMENTS AND RELATED DEVELOPMENT IMPROVEMENTS 3.1 In addition to the 2013 Facility Public Improvement Assessment, the City has levied and will continue to levy Assessments (the "Additional Facility Assessments") unrelated to Project Infrastructure Bonds or the 2013 Public Improvements against the Facility Property for "Additional Facility Public Improvements" that fall into the following categories: (i) water, wastewater, and drainage facilities or improvements, including sanitary sewer facilities, storm water detention and retention facilities, and utility relocations related to such improvements; (ii) street and roadway improvements, including related traffic signalization, signage, sidewalks, curbs, gutters, streetscape, landscaping, drainage improvements, and utility relocations related to such street and roadway improvements; (iii) mass transit facilities; (iv) park improvements, (v) landscaping; (vi) lighting and signage; (vii) pedestrian malls; (viii) site improvements for any of the foregoing, including, but not limited to, grading, erosion control, wetlands mitigation, and floodplain reclamation; (ix) special supplemental services for improvement and promotion of the District, including services relating to advertising, promotion, health and sanitation, water and wastewater, public safety, security, business recruitment, development, recreation, and cultural enhancement; and (x) payment of expenses incurred in the administration and operation of the District. The Additional Facility Public Improvements for which Assessments have been previously levied are more particularly described in the special benefits reports attached to the 2015 Annual Service Plan Update, 2016 Annual Service Plan Update, 2017 Annual Service Plan Update, 2018 Annual Service Plan Update, 2019 Annual Service Plan Update, 2020 Annual Service Plan Update, 2021 Annual Service Plan Update, and in this Section 3 of this SAP Update. The Additional Facility Assessments have not been and will not be pledged as security for any series of Project Infrastructure Bonds. The Creation Resolution establishes a cap on the amount of total costs for which Assessments may be levied against the Facility Property and in no event shall the total amount of Assessments levied against the Facility Property for the 2013 Public Improvements and the Additional Facility Public Improvements exceed $150,000,000. 3.2 As described above in Section 2.2, the City deferred the 2013 Related Development Deferred Assessment for the remainder of the 2013 Public Improvements Cost in the amount of $11,400,000.00 for the portion of the 2013 Public Improvements that specially benefit the Related Development Property until the portion of the Related Development Property that is specially benefited by the 2013 Public Improvements could be identified. The City has levied, and intends to continue levying, additional Assessments against the Related Development Property for the remaining Related Development Public Improvements Cost (that do not include the 2013 Public Improvements) as portions of the Related Development Property that are specially benefited by the Related Development Public Improvements are developed. The costs of certain Related Development Public Improvements and the method of allocation of such costs based on the benefit conferred by such Related Development Public Improvements are included in this SAP Update; and, additional information for the Related Development Public Improvements will be included in future updates to the Service and Assessment plan as development progresses. 103 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 6 1775.016\108190.5 3.3 The Related Development Public Improvements fall into the same categories as the 2013 Facility Public Improvements plus: (i) off street structured and surface parking facilities, (ii) special supplemental services for improvement and promotion of the District, including services relating to advertising, promotion, health and sanitation, water and wastewater, public safety, security, business recruitment, development, recreation, and cultural enhancement; and (iii) payment of expenses incurred in the administration and operation of the District. 3.4 Portions of the Related Development Property remain undeveloped, while other portions are under development or fully developed. Portions of the Property will be developed with additional mixed-use facilities including, but not limited to, entertainment, tourism, recreation, and convention facilities that will attract tourists, visitors, and shoppers from a wide geographic region, and hotels, retail stores, concessions, restaurants, and other facilities related to the entertainment, tourism, recreation, and convention uses (collectively, the "Related Development"). The portions of the Related Development currently under development include the following: the portion of the Property described as (1) Grandscape Addition, Phase II, Lot 6/Block A consisting of 2.015 acres and identified as Denton CAD Tax Parcel No. 692390; (2) Grandscape Addition, Phase II, Lot 7/Block A consisting of 2.105 acres and identified as Denton CAD Tax Parcel No. 692391; (3) Grandscape Addition, Phase II, Lot 8/Block A consisting of 2.944 acres and identified as Denton CAD Tax Parcel No. 653843; (4) Grandscape Addition, Phase II, Lot 9/Block A consisting of 2.683 acres and identified as Denton CAD Tax Parcel No. 653844; (5) Grandscape Addition Phase II, Lot 2R/Block B consisting of 1.903 acres and identified as Denton CAD Tax Parcel No. 692387; (6) Grandscape Addition Phase II, Lot 3R-X/Block B consisting of .301 acres and identified as Denton CAD Tax Parcel No. 692388; (7) Grandscape Addition Phase II, Lot 1/Block B consisting of 3.386 acres and identified as Denton CAD Tax Parcel No. 674231; (8) Grandscape Addition Phase II, Lot 1R/Block J consisting of 2.931 acres and identified as Denton DCAD Property ID No. 692379; (9) Grandscape Addition Phase II Lot 3X/Block J consisting of .204 acres and identified as Denton CAD Tax Parcel No. 692380; (10) Grandscape Addition Phase II, Lot 1(S pt)/Block H consisting of 8.551 acres and identified as Denton DCAD Property ID No. 732382; (11) Grandscape Addition Phase II, Lot 3(SE PT)/Block A consisting of 86.502 acres as identified as Denton CAD Property ID No’s. 748393,753491 and 753492; (12) Grandscape Addition Phase II BLK A LOT 3R consisting of 3.645 acres and identified as Den ton CAD Tax Parcel No. 674218; (13) Grandscape Addition BLK B Lot 4 consisting of 1.925 acres and identified as Denton CAD Property ID No. 692389 (14) Grandscape Addition Phase II, Lot 3/Block A (collectively 1.2(1)-(14) are, the "Related Development Property"). Certain public improvements (the "Related Development Public Improvements") are or will be required to serve the Related Development Property. The portion of the property described as Grandscape Addition, Phase II, Lot 2/Block D consisting of approximately 16.421 acres and identified as Denton CAD Tax Parcels Nos. 957987, 704832, 957988, 957989, 957990, 957991 and 957992 (the "Waterfront Property") will be developed with a boardwalk and related amenities (the "Waterfront"), including public improvements required to serve the Waterfront (the "Waterfront Public Improvements", and together with the Related Development Public Improvements referred to collectively as the "Annual Related Development Public Improvements"). 3.5 All Additional Facility Public Improvements and Annual Related Development Public Improvements, and portions of the Property on which such Public Additional Facility Public Improvements and Annual Related Development Improvements are constructed, will remain owned by the City. 104 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 7 1775.016\108190.5 3.6 The annual costs for the Additional Facility Public Improvements are estimated in the Official Report for the 2022-23 Public Improvements Cost. The total cost of the Additional Facility Public Improvements is estimated to be $703,184.79 (the "2022-23 Additional Facility Public Improvements Cost") as shown on Exhibit B. The annual total cost of the Waterfront Public Improvements is estimated to be $63,846.31 (the "2022-23 Waterfront Public Improvements Cost") as shown on Exhibit B. The annual total cost of the Related Development Public Improvements is estimated to be $463,235.30 (the "2022-23 Related Development Public Improvements Cost") as shown on Exhibit B. The individual line item costs shown in the Official Report and on Exhibit B for each category of Additional Facility Public Improvements and Annual Related Development Public Improvements are estimates and may vary item -to-item so long as the cost of all Public Improvements do not exceed $1,230,266.40. The Additional Facility Public Improvements Cost and Annual Related Development Public Improvements Cost are sometime referred to collectively as the "2022-23 Public Improvements Cost." A reconciliation of the 2021- 22 Public Improvement Costs yielded a $238,238 surplus. To provide operations funding during the lag period between the budget commencement and the annual assessment collection $303,353 (90 days of operating costs) was allocated to a “Pre-paid Expense” line item. An additional $9,040 is being added to the total assessment to recover costs from parcel specific Enhanced Development Services described in Exhibit D. The total sum of the 2021-22 Public Improvement Costs, the 90 Days of operating costs, and the parcel specific Enhanced Developmental services brings the overall assessment to $1,542,660 The surplus of $238,238 was allocated proportionately to reduce the 2021-22 Assessment from $1,542,660 to $1,304,422. 3.7 Assessments levied against the Facility Property, Related Development Property, or Waterfront Property for costs of the Additional Facility Public Improvements and Annual Related Development Public Improvements, as applicable, that are not pledged as security for Project Infrastructure Bonds shall be updated annually and shall be collected as described below in Section 5.10 and shall be deposited into a sub-account of the PID Operating Account and used solely for the purposes determined by the City Council at the time the Assessments are levied. SECTION 4 SERVICE PLAN 4.1 This Section 4 is the Service Plan for the District. This Service Plan covers a period of at least five (5) years beginning with calendar year 2021 and defines the projected cost and annual indebtedness for the Public Improvements. The Service Plan shall be reviewed and updated at least annually for the purpose of determining the annual budget for the Public Improvements (each such update, a "Service Plan Update"). 4.2 As confirmed by the 2021 City Ordinance, the actual costs for the 2013 Public Improvements exceeded the estimated 2013 Public Improvements Cost of $94,800,000.00 described in the Original Service and Assessment Plan, the 2013 Official Report, and 2013 Special Benefit Analysis. The annual indebtedness for the 2013 Public Improvements for the next five years is shown on Exhibit C-1. The annual indebtedness for the 2013 Public Improvements Cost in any given year is the sum of the Semi-Annual Installments for the Project Infrastructure Bonds for the year. 105 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 8 1775.016\108190.5 4.3 The projected Additional Facility Public Improvements Cost is $703,184, and for the next five years such cost is allocated as shown on Exhibit C-2. The annual indebtedness for the Additional Facility Public Improvements is the Additional Facility Assessment the City has levied or expects to levy for each year shown. 4.4 The projected costs for the Annual Related Development Public Improvements are $572,436 and for the next five years such cost is allocated as shown on Exhibit C-3. The annual indebtedness for the Annual Related Development Public Improvements is the Assessments the City has levied or expects to levy for the Annual Related Development Public Improvements each year shown. 4.5 The form of notice required by Texas Property Code Section 5.014, as amended, is attached as Exhibit C-4. SECTION 5 ASSESSMENT PLAN 5.1 Method of Assessment. This Section 5 is the Assessment Plan for the District. This Assessment Plan assesses the Public Improvements Cost against the Property on the basis of the special benefits conferred on the Property by the Public Improvements. The Act provides that the Public Improvements Cost may be assessed equally per front foot or square foot (with or without regard to the value of improvements constructed on the land) or in any other manner that results in imposing equal shares of the cost on property similarly benefited. 5.2 Best and Highest Use. Based on: (i) the size and location of the Property within the corporate limits of the City; (ii) the lack of public infrastructure to serve development of the Property; (iii) the proximity of the Property to public roadways and water and sewer facilities; (iv) the proximity of the Property to population and employment centers; (v) the scope and economic impact of the Facility, the Waterfront and the Related Development on the City, Denton County; and the north Texas region; (vi) existing and projected land uses in the vicinity of the Property; (vii) projected growth in the greater Dallas metropolitan area and, in particular, along the State Highway 121 corridor; and (viii) the quality of the proposed development within the Property, the City Council has determined that: (A) the best and highest use of the Property is for the development of the Facility, the Waterfront, and the Related Development; (B) achieving the best and highest use of the Property requires the Public Improvements; (C) without the Public Improvements the Property will not be developed to its best and highest use; (D) the establishment of the District provides an effective means of funding the Public Improvements to achieve the best and highest use for the Property without financial burden to the City; and (E) the Public Improvements will promote the interests of the City and confer a special benefit on the Property. 5.3 Assessments Against Facility Property. As described in Section 2.2 above, the City has levied the 2013 Facility Public Improvement Assessment in the amount of $83,400,000.00 against the Facility Property for the portion of the 2013 Public Improvements Cost that the City Council determined conferred a special benefit on the Facility Property. Based on the costs shown in the Official Report for the 2021-22 Public Improvements for the 2021-22 attached as Exhibit B and the Special Benefits Report attached as Exhibit D, the City has levied Assessments in the amount of $731,985.36 for the 2022-23 Additional Facility Public Improvements and 2022-23 Related 106 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 9 1775.016\108190.5 Development Public Improvements as shown on the Assessment Roll attached as Exhibit E. As the Facility Property is specially benefitted by Additional Facility Improvements, the City intends to continue to levy Assessments against the Facility Property. The Creation Resolution establishes a cap on the amount of the total costs for which Assessments may be levied against the Facility Property and in no event shall the total amount of Assessments levied against the Facility Property for the 2013 Public Improvements and the Additional Public Improvement exceed $150,000,000. As shown in Paragraphs 1 and 2 of Section 7 below, a total of $90,622,398.59 has been levied against the Facility Property, consisting of $83,400,000.00 for the 2013 Public Improvements and $7,222,398.59 for the Additional Facility Public Improvements. 5.4 Assessments Against Related Development Property. As described in Section 2.2 above, the City deferred assessment of the remainder of the 2013 Public Improvements Cost in the amount of $11,400,000.00 for the portion of the 2013 Public Improvements that specially benefit the Related Development Property (the "2013 Related Development Deferred Assessment") until the portion of the Related Development Property that is specially benefited by the 2013 Public Improvements could be identified. The deferral of the levy of the 2013 Related Development Deferred Assessment in the amount of $11,400,000.00 under the 2013 Assessment Ordinance is hereby restated and shall be deferred until the development of the Property is certified as complete by the owner. Based on the costs shown in the Official Report for the 2022-23 Public Improvements for the 2022-23 attached as Exhibit B and the Special Benefits Report attached as Exhibit D, the City has levied the Assessments for the 2022-23 Related Development Public Improvements as shown on the Assessment Roll attached as Exhibit E. As portions of the Related Development Property that are specially benefited by the Related Development Public Improvements are developed, the City intends to continue to levy additional Assessments against the Related Development Property for the remaining Related Development Public Improvements Costs (that do not include the 2013 Public Improvements). The costs of such Related Development Public Improvements and the method of allocation of such costs based on the benefit conferred by such Related Development Public Improvements for which Assessments are being levied in accordance this SAP Update (the "2022 Related Development Assessment") are described herein. The Creation Resolution establishes a cap of $150,000,000 of the total costs for which Assessments may be levied for the "Related Improvements Costs" (as defined in the Creation Resolution). As shown in Paragraph 3 of Section 7 below, a total $4,744,287.21 has been levied for the Related Development Public Improvements which does NOT include the 2013 Related Development Deferred Assessment in the amount of $11,400,00.00. 5.5 Adjustment of Assessments. With the exception of the 2013 Facility Public Improvement Assessment, the Assessments described in this Section 5 are based on estimates of the Public Improvements Costs until construction of such Public Improvement, or provision of services if applicable, is complete. If the actual cost of the Public Improvements is less than the estimates, the Assessments shall be reduced as determined by the Administrator and approved by the City Council in a Service Plan Update. 5.6 Subdivision; Change to Tax Exempt. 5.6.1 Upon Subdivision. If the Facility Property is subdivided, any Assessment levied against the Facility Property shall be reallocated as described in Section 4.6.1 of the Service and Assessment Plan. Additionally, other than annual Assessments for the Annual Related 107 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 10 1775.016\108190.5 Development Public Improvements that are not pledged as security to any series of PID bonds, any Assessment against Related Develop ment Property will not be reallocated among subdivided Parcels until the development of the Related Development Property is certified as complete by the owner. If the Related Development Property or Waterfront Property is subdivided, the annual Assessment levied against Related Development Property or Waterfront Property under this SAP Update for the Annual Related Development Public Improvements will be reallocated among the subdivided Parcels on a per-acre basis as determined by the Administrator and reflected in a Service Plan Update approved by the City Council after a public hearing for which notice addressed to "Property Owner" has been mailed, regular mail, to the current address of the owner of the property being subdivided as reflected on the tax rolls. 5.6.2 Upon Becoming Tax Exempt. If any portion of the Facility Property becomes exempt from the payment of ad valorem taxes, the owner of such portion shall pay to the City the unpaid principal amount of the Assessment allocated (on a per-acre basis) to such portion of the Facility Property plus, if applicable, accrued interest through the date of payment. Prepayment Costs, if any, shall be paid as a Semi-Annual Administrative Cost. If any portion of the Related Development Property or Waterfront Property becomes exempt from the payment of ad valorem taxes, the owner of such portion shall pay to the City the unpaid principal amount of the Assessment allocated (on a per-acre basis) to such portion of the Property. 5.7 Prepayment of Assessments. The unpaid principal amount of an Assessment may be prepaid in full or in part at any time, together with accrued interest, if any, through the date of prepayment; whereupon the Assessment and corresponding assessment lien automatically terminate and shall be reduced to zero in a Service Plan Update. Prepayment Costs, if any, may be paid by the Administrator from Semi-Annual Administrative Cost. 5.8 Accrual of Interest. Assessments shall not bear interest except for interest authorized by Section 372.018(a) of the Act. Assessments that are deferred may bear interest as approved by the City Council at the time the Assessments are levied. 5.9 Semi-Annual Installments of Assessments Related to Project Infrastructure Bonds. Assessments levied against the Facility Property and/or the Related Development Property and pledged as security to any series of Project Infrastructure Bonds, including the 2013 Facility Public Improvement Assessment securing the 2013 Project Infrastructure Bonds and 2021 LGC Tax Refunding Bonds, shall be due and payable to the City in Semi-Annual Installments as set forth in the applicable Reimbursement Agreement beginning on the date stated in the applicable Reimbursement Agreement and continuing every March 1 and September 1 thereafter and will be delinquent if not paid within three calendar days after it is due and payable. Semi-Annual Installments are not required to be level amounts and will vary depending on Semi-Annual District Expenses and the amounts, if any, of Debt Service Shortfalls. For so long as any Project Infrastructure Bonds remain outstanding, each of the Corporations, pursuant to a Reimbursement Agreement, is required to calculate its respective Debt Service Shortfall amount for each bond issue based on the "Bond Debt Service" schedules attached as Exhibit E-1, and each Corporation shall certify such Debt Service Shortfall amount to the City no later than each February 1 or August 1 commencing August 1, 2013 (each a "Semi-Annual Calculation Date"). Upon notification of 108 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 11 1775.016\108190.5 each Debt Service Shortfall amount due for each bond issue, the City shall calculate the amount of the Semi-Annual Installment and shall submit a bill to each property owner no later than each February 15 and August 15 (each a "Semi-Annual Billing Date"). The City will use all reasonable efforts to collect Semi-Annual Installments before they become delinquent. If a Semi-Annual Installment becomes delinquent, all remedies at law or under the Act shall be available to the City. If a Debt Service Shortfall is anticipated for more than one series of Project Infrastructure Bonds, a portion of the funds in the PID Operating Account shall be transferred on a pro -rata basis to separate sub-accounts corresponding to each issue of Project Infrastructure Bonds for which a Debt Service Shortfall is anticipated to occur; and, such amounts shall be paid by the City from such sub-accounts to each of the Corporations under the applicable Reimbursement Agreement to pay Debt Service Shortfalls for the applicable series of Project Infrastructure Bonds. As required under each respective Reimbursement Agreement, each Corporation calculated any anticipated Debt Service Shortfall based on the Bond Debt Service schedules no later than February 1, 2022 and August 1, 2022; and, each Corporation determined there would be no Debt Service Shortfall and no Semi-Annual Installments were required to be paid for calendar year 2022. 5.10 Annual Payment of Assessments Not Related to Project Infrastructure Bonds. Assessments levied against the Facility Property or the Related Development Property for costs of the Additional Facility Public Improvements or the Related Development Public Improvements that are not pledged as security for Project Infrastructure Bonds shall be updated annually and shall be collected by the City in the same manner and at the same time as ad valorem taxes in the amount shown on the Assessment Rolls attached to each Annual Service Plan Update. Such Assessments shall be due when billed and shall be delinquent if not paid prior to February 1 of the following year. Failure of a landowner to receive an invoice for such Assessment on the property tax bill shall not relieve the landowner of the responsibility for payment of the Assessment. Assessment Revenue collected by the City from Assessments levied against the Facility Property or the Related Development Property for Additional Facility Public Improvements and/or Related Development Public Improvements based on the special benefit conferred by such Additional Facility Public Improvements or the Related Development Public Improvements that is not pledged as security for any series of Project Infrastructure Bonds and shall be deposited into a sub-account of the PID Operating Account and used solely for the purposes determined by the Cit y Council at the time the Assessments are levied. 5.11 PID Operating Account. Assessment Revenue from the collection of Semi-Annual Installments of an Assessment against the Facility Property and/or Related Development Property in connection with the issuance of a series of Project Infrastructure Bonds will be deposited by the City into the PID Operating Account, including sub -accounts corresponding to each issue of Project Infrastructure Bonds, as applicable, immediately upon receipt and will be transferred by the City to the respective Corporations, or to the applicable trustee(s) for the benefit of such Corporations, to pay Debt Service Shortfalls, if any, by September 5, 2013, and by each March 5 and September 5 thereafter for so long as Project Infrastructure Bonds are outstanding. Assessment Revenue from the collection of an Assessment against the Facility Property and/or Related Development Property unrelated to the issuance of a series of Project Infrastructure Bonds will be deposited by the City into the PID Operating Account, including sub-accounts as applicable, immediately upon receipt and shall be used solely for the purposes determined by the City Council at the time such Assessments were levied. Any Assessment Revenue due to the Corporations on any such date but collected by the City after the due date shall be transferred to the respective 109 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 12 1775.016\108190.5 Corporations or applicable trustee(s) within two business days. Assessment Revenue from the collection of any Assessment against the Property will be deposi ted by the City into the PID Operating Account for Annual Assessments. Assessment Revenue from the 2021 Related Development Assessment against all or any portion of the Property will be collected in lump sum with 30 days of the levy of the assessment or with the annual property tax collection and deposited into a segregated operating account (the "PID Operating Account for Annual Assessments") created and controlled by the City. Interest earned on the PID Operating Account for Annual Assessments shall be added to and become part of the PID Operating Account for Annual Assessments. The PID Operating Account for Annual Assessments is a separate account and segregated from the "PID Operating Account" described in the Service and Assessment Plan that was created pursuant to the 2013 Assessment Ordinance (such account is referred to herein as the "PID Operating Account for Pledged Revenues.") All Assessment Revenue from the 2013 Facility Public Improvement Assessment and the 2013 Related Development Deferred Assessment levied pursuant to Ordinance No. 2013-1992 shall be deposited into the PID Operating Account for Pledged Revenues and transferred from that account, if at all, consistent with the requirements of 2013 Assessment Ordinance and the trust indentures governing the Project Infrastructure Bonds. All Assessment Revenue from any Assessment levied on an annual basis shall be deposited into the PID Operating Account for Annual Assessments and used solely for the purposes determined by the City Council at the time the Assessments are levied. 5.12 Reduction of Assessment Against the Property. The Assessment against the Facility Property (and the corresponding assessment lien) shall be reduced by the sum of all amounts by which the outstanding principal of the Project Infrastructure Bonds for which the PID Operating Account is pledged, as additional security, are reduced and by sum of all prepayments of the Assessment made pursuant to Section 5.7. The current outstanding principal amount of the Assessments levied against the Facility Property based on the debt service schedules related to the Project Infrastructure Bonds attached as Exhibit E-1 is set forth in Section 7 below. The Assessment against the Property (and the corresponding assessment lien) shall be reduced by the sum of all amounts by which the Public Improvement Costs are reduced. 5.13 Security for Payment. All payments due in accordance with the Service and Assessment Plan as updated by this SAP Update shall be treated the same with respect to the liens created to secure payment and the rights of the City, including foreclosure, in the event of delinquencies. Any foreclosure sale of a Parcel for nonpayment of any such amounts shall be subject to a continuing lien for the remaining unpaid amounts in accordance with state law. All assessment liens created pursuant to the 2013 Assessment Ordinance are superior to any lien created by any other ordinance approving an Annual Service Plan Update, including this SAP Update. 5.14 Release of Lien. When an Assessment has been paid in full, the Administrator shall notify the City, and the City shall execute a release, in recordable form, evidencing full payment of the Assessment and the unconditional release of the lien securing payment of the Assessment. All releases shall be reflected in a Service Plan Update. 5.15 Findings and Determinations. The findings and determinations by the City Council set forth in this Service and Assessment Plan are based on: (i) the 2013 Official Report prepared by Graham Associates, Inc.; (ii) the 2013 Special Benefits Report prepared by Graham Associates, Inc.; (iii) evidence and testimony presented to the City Council; and (iv) information made 110 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 13 1775.016\108190.5 available to the City Council. The City Council hereby confirms and ratifies the f indings and determinations made by the City Council in the 2015 Assessment Ordinance, 2016 Assessment Ordinance, 2017 Assessment Ordinance, 2018 Assessment Ordinance, 2019 Assessment Ordinance and 2020 Assessment Ordinance, including the special benefits reports and annual service plan updates attached thereto. The City Council has relied on the information contained in the 2013 Official Report, 2013 Special Benefits Report, the reports and special benefit analysis contained in each Annual Service Plan Update, evidence, and testimony in the preparation and approval of this Service and Assessment Plan and the allocation of the Public Improvements Cost to the Property. Such findings and determinations represent the discretionary exercise by the City Council of its legislative and governmental authority and power, and such findings and determinations are conclusive and binding on the current and future owners of the Property. The Corporations have concurred in and approved the findings and determinations by the City Council as set forth in this Service and Assessment Plan and have otherwise concurred in and approved this Service and Assessment Plan and the levy of Assessments against the Property. The Corporations have acknowledged that the Property is subject to payment of Assessments and/or Semi-Annual Installments as provided in this Service and Assessment Plan and in the Reimbursement Agreements. SECTION 6 ANNUAL BUDGET FOR PUBLIC IMPROVEMENTS 6.1 2013 Public Improvements Costs. On January 19, 2021, the City approved Ordinance No. 2021-2430 (the "2021 City Ordinance"), approving the Service and Assessment Plan and making certain finding and determinations related to the District. In the 2021 City Ordinance, the City Council ratified and confirmed the allocation of the 2013 Public Improvements Cost approved by the 2013 Assessment Ordinance and Original Service and Assessment Plan as follows: (1) $83,400,000 for the special benefit to the Facility Property for which the 2013 Facility Public Improvement Assessment was levied, and (2) $11,400,000.00 for the benefit to the Related Development Property for which the 2013 Related Development Deferred Assessment has been deferred. Additionally, the 2021 City Ordinance confirmed that the actual costs for the 2013 Public Improvements exceeded the estimated 2013 Public Improvements Cost of $94,800,000.00 described in the Original Service and Assessment Plan, the 2013 Official Report, and 2013 Special Benefit Analysis. 6.2 2022 Public Improvements Cost. The City Council has received, reviewed, and approved that certain SPECIAL BENEFITS REPORT, The City of The Colony Public Improvement District No. 1, The Colony, Texas dated August 16th, 2022 prepared by Executive Business Liaison Jeremie Maurina, a copy of which is attached as Exhibit D (the "2022 Special Benefits Report”). The individual line item costs shown in the 2022 Special Benefits Report and on Exhibit D-1 for each category of improvements are estimates and may vary item-to-item so long as the Public Improvements Cost does not exceed $1,230,266.40. SECTION 7 ASSESSMENT ROLL This Section 7 describes the Assessment Roll for the District. The Assessment Roll is set forth on Exhibit E and consists of: 111 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 14 1775.016\108190.5 1. The 2013 Facility Public Improvement Assessment originally levied in principal amount of $83,400,000.00 by the 2013 Assessment Ordinance with an outstanding principal amount of $79,839,319.34 as of December 31, 2021. The 2013 Facility Public Improvement Assessment is allocated as follows among the Project Infrastructure Bonds: Pro-Rata Share(1) Allocated Portion of Original 2013 Facility Public Improvement Assessment Outstanding Principal Amount of 2013 Facility Public Improvement Assessment 2013 LGC Sales Tax Bonds 16.80% $14,011,200 $ 13,406,622.24 (2) 2021 LGC Tax Refunding Bonds(3) 20.60% $17,180,400(3) $17,074,755.73 (2) 2013 Type A Bonds 31.30% $26,104,200 $ 24,678,972.69 (2) 2013 Type B Bonds 31.30% $26,104,200 $24,678,970.69 (2) (1) Pro-rata allocation of the original principal amount of the $83,400,000 2013 Facility Public Improvement Assessment was based on the par amount of each series of 2013 Project Infrastructure Bonds issued as a percentage of the total par amount of all 2013 Project Infrastructure Bonds. (2) In accordance with Section 5.12 above, the principal amount of the 2013 Facility Public Improvement Assessment was reduced by the sum of all amounts by which the outstanding principal amount of the 2013 Project Infrastructure Bonds have been reduced. As of December 31, 2021, the outstanding par amount of the 2013 Project Infrastructure Bonds (with the 2021 LGC Tax Refunding Bonds) was $90,515,000 thus reducing the outstanding 2013 Facility Public Improvement Assessment to $79,839,319.34. The following Semi-Annual Installments have been collected to pay Debt Service Shortfalls on the 2013 LGC Sales Tax Bonds: on February 14, 2017 in the amount of $500,081.25; on July 17, 2017 in the amount of $1,158,162.50; on July 16, 2018 in the amount of $1,294,662.50; and on July 25, 2019 in the amount of $1,306,963.00 for a total of 4,259,869.25 which payments do not reduce the principal amount of the 2013 Facility Public Improvement Assessment. (3) The pro-rata share of the 2013 Facility Public Improvement Assessment that formerly secured the 2013 LGC Tax Bonds now secures the 2021 LGC Tax Refunding Bonds. 2. Assessments related to the Additional Facility Public Improvements: Original Principal Amount Levied Outstanding as of 9/6/22 2015 Facility Assessment(1) $959,247.96 $0.00 2015-16 Facility Assessment(2) $1,218,234.83 $0.00 2016 Facility Assessment $875,155.64 $0.00 2017 Facility Assessment $658,465.00 $0.00 2018 Facility Assessment $810,379.62 $0.00 2019 Facility Assessment $570,667.99 $0.00 2020 Facility Assessment $862,382.25 $0.00 2021 Facility Assessment $535,879.94 $0.00 2022 Facility Assessment $731,985.36 $731,985.36 TOTAL: $7,222,398.59 (1) Levied under Ordinance No. 2015-2136 approved on May 5, 2015. (2) Levied under Ordinance No. 2015-2160 approved on September 15, 2015. 112 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 15 1775.016\108190.5 3. Assessments related to the Related Development Public Improvements (excludes 2013 Related Development Deferred Assessment): Original Principal Amount Levied Outstanding as of 9/6/221 2015 Related Development Assessment(1) $420,053.04 $0.00 2015-16 Related Development Assessment(2) $236,757.17 $0.00 2016 Related Development Assessment $287,680.36 $0.00 2017 Related Development Assessment $872,993.00 $0.00 2018 Related Development Assessment $687,426.36 $0.00 2019 Related Development Assessment $490,441.03 $0.00 2020 Related Development Assessment $810,043.90 $0.00 2021 Related Development Assessment $366,446.95 $0.00 2022 Related Development Assessment $572,445.40 $572,445.40 TOTAL: $4,744,287.21 (1) Levied under Ordinance No. 2015-2136 approved on May 5, 2015. (2) Levied under Ordinance No. 2015-2160 approved on September 15, 2015. As authorized by the Act, the assessment of the 2013 Related Development Deferred Assessment in the amount of $11,400,000 for the portion of the 2013 Facility Public Improvements that benefit the Related Development Property remains deferred until the development of the Related Development Property is certified as complete by the owner which will be the time at which the special benefit conferred on the Related Development Property can be determined with certainty. SECTION 8 ADDITIONAL PROVISIONS 8.1 Severability. The provisions of this Service and Assessment Plan are intended to be severable. In the event any provision of this Service and Assessment Plan, or the application thereof to any person or circumstance, is held or determined to be invalid, illegal, or unenforceable, and if such invalidity, unenforceability, or illegality does not cause substantial deviation from the underlying intent of the City Council as expressed in this Service and Assessment Plan, then such provision shall be deemed severed from this Service and Assessment Plan with respect to such person, entity, or circumstance without invalidating the remainder of this Service and Assessment Plan or the application of such provision to other persons, entities, or circumstances. 8.2 Exhibits. The following exhibits are part of this Service and Assessment Plan: Exhibit A Legal Description of the Property Exhibit A-1 Depiction of the Property Exhibit B Official Report – 2022 Public Improvements Cost Exhibit C-1 Service Plan: Five-Year Projection of 2013 Public Improvements 113 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 16 1775.016\108190.5 Exhibit C-2 Service Plan: Five-Year Projection of Additional Facility Public Improvements Costs Exhibit C-3 Service Plan: Five-Year Projection of Related Development Public Improvements Costs Exhibit C-4 Form of Notice Required by Texas Property Code Section 5.014 Exhibit D Special Benefits Report Exhibit D-1 Facility Public Improvements Cost – Special Benefit Analysis Exhibit E Assessment Roll Exhibit E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfall Exhibit F Chronological History of City Council Legislative Actions for the District 114 Exhibit A Legal Description of the Property (439.12 Acres) Exhibit A to The Colony SAP – Legal Description of the Property - Page 17 1775.016\108190.5 Being a 439.12 acre tract of land situated in the B.B.B & C.R.R. Survey, Abstract No. 173, B.B.B. & C. Survey, Abstract No. 174, Thomas A. West Survey, Abstract No. 1344, and the M.D.T. Hallmark Survey, Abstract No. 570, Denton County, Texas, and being all of a tract of land conveyed by deed to 121 Acquisition Company, LLC., as recorded in Instrument No. 2011-114773, 2011-121444, and 2011-112195, Deed Records, Denton County, Texas, and a portion of Plano Parkway and a portion of Burlington Northern Railroad tract, and being more particularly described as follows: BEGINNING at a found TxDOT monument, said point being the northwest corner of said 121 Acquisition Company, LLC tract and being in the south right-of-way line of State Highway 121 (having a variable width R.O.W.); THENCE North 63°32'06" East, along said south right-of-way line, a distance of 130.52 feet to a point for corner; THENCE North 60°22'33" East, continuing along said south right -of-way line, a distance of 80.86 feet to a point for corner; THENCE South 29°13'03" East, continuing along said south right -of-way line, a distance of 50.00 feet to a point for corner; THENCE North 60°47'38" East, continuing along said south right -of-way line, a distance of 219.64 feet to a point for corner, said point being in the west right-of-way line of Plano Parkway (100 ft R.O.W.); THENCE North 50°53'35" East, leaving said south right-of-way line, and leaving said west right-of-way line, a distance of 100.00 feet to a point for corner, for the beginning of a non-tangent curve to the right having a radius of 950.00 feet and a central angle of 1°26'54" and a long chord which bears North 38°22'58" West, 24.01 feet, said point being in the east right-of-way line of said Plano Parkway; THENCE along said east right-of-way line, and along said non-tangent curve to the right an arc distance of 24.01 feet to a point for corner, said point being the most southerly point of a corner -clip of the intersection of said east right-of- way line of Plano Parkway and the south right -of-way line of said State highway 121; THENCE North 08°46'31" East, along said corner-clip, a distance of 26.03 feet to a point for corner, said point being in the south right-of-way line of said State highway 121; THENCE North 60°47'38" East, along said south right-of-way line, a distance of 203.71 feet to a point for corner; THENCE North 58°17'36" East, continuing along said south right -of-way line, a distance of 252.11 feet to a point for corner; THENCE North 55°47'40" East, continuing along said south right-of-way line, a distance of 105.11 feet to a point for corner; THENCE North 58°17'42" East, continuing along said south right -of-way line, a distance of 248.62 feet to a point for corner; THENCE North 60°47'38" East, continuing along said south right-of-way line, a distance of 263.85 feet to a point for corner; THENCE North 76°30'51" East, continuing along said south right -of-way line, a distance of 92.27 feet to a point for corner; THENCE North 65°56'12" East, continuing along said south right-of-way line, a distance of 100.40 feet to a point for corner; THENCE North 64°13'39" East, continuing along said south right -of-way line, a distance of 100.18 feet to a point for corner; THENCE North 60°16'36" East, continuing along said south right-of-way line, a distance of 39.88 feet to a point for corner; THENCE South 74°12'01" East, continuing along said south right -of-way line, a distance of 70.70 feet to a point for corner; THENCE North 60°47'38" East, continuing along said south right-of-way line, a distance of 64.12 feet to a point for corner; THENCE North 15°47'17" East, continuing along said south right -of-way line, a distance of 73.27 feet to a point for corner; THENCE North 59°04'32" East, continuing along said south r ight-of-way line, a distance of 94.25 feet to a point for corner; 115 Exhibit A Legal Description of the Property (439.12 Acres) Exhibit A to The Colony SAP – Legal Description of the Property - Page 18 1775.016\108190.5 THENCE North 55°39'04" East, continuing along said south right -of-way line, a distance of 100.40 feet to a point for corner; THENCE North 47°37'54" East, continuing along said south right -of-way line, a distance of 114.18 feet to a point for corner; THENCE North 60°47'38" East, continuing along said south right -of-way line, a distance of 3800.00 feet to a point for corner; THENCE North 65°20'10" East, continuing along said south right -of-way line, a distance of 189.41 feet to a point for corner; THENCE North 61°56'23" East, continuing along said south right -of-way line, a distance of 100.02 feet to a point for corner; THENCE North 63°39'23" East, continuing along said south right -of-way line, a distance of 100.12 feet to a point for corner; THENCE North 64°47'53" East, continuing along said south right -of-way line, a distance of 100.24 feet to a point for corner; THENCE North 66°30'16" East, continuing along said south right -of-way line, a distance of 201.00 feet to a point for corner; THENCE North 65°56'12" East, continuing along said south right -of-way line, a distance of 100.40 feet to a point for corner; THENCE North 66°30'16" East, continuing along said south right -of-way line, a distance of 100.50 feet to a point for corner; THENCE North 63°05'04" East, continuing along said south right -of-way line, a distance of 100.08 feet to a point for corner; THENCE North 64°13'39" East, continuing along said south right -of-way line, a distance of 100.18 feet to a point for corner; THENCE North 83°05'27" East, continuing along said south right -of-way line, a distance of 69.58 feet to a point for corner; THENCE North 60°39'18" East, continuing along said south right -of-way line, a distance of 33.81 feet to a point for corner, said point being in the west right -of-way line of Burlington Northern Railroad (having a variable width R.O.W.); THENCE North 60°38'52" East, leaving said west right-of-way line, a distance of 107.30 feet to a point for corner, said point being in the east right-of-way line of said Burlington Northern Railroad; THENCE North 60°45'58" East, leaving said east right-of-way line, continuing along said south right -of-way line of State Highway 121, a distance of 254.35 feet to a point for corner; THENCE North 63°19'02" East, continuing along said south right -of-way line, a distance of 585.96 feet to a point for corner; THENCE North 60°52'09" East, continuing along said south right -of-way line, a distance of 369.37 feet to a point for corner, said point being in the west right-of-way line of West Spring Creek Parkway (having a 160 ft R.O.W.); THENCE South 29°24'43" East, leaving said south right -of-way line, and along said west right-of-way line, a distance of 265.52 feet to a point for corner, for the beginning of a non-tangent curve to the right having a radius of 970.00 feet and a central angle of 29°13'42", and a long chord which bears South 14°53'13" East, 489.48 feet; THENCE continuing along said west right-of-way line, and along said no n-tangent curve to the right an arc distance of 494.83 feet to a point for corner; THENCE South 00°22'42" East, continuing along said west right -of-way line, a distance of 476.17 feet to a point for corner; THENCE South 00°23'35" East, continuing along said west right-of-way line, a distance of 864.92 feet to a point for corner, said point being in the north line of Kings Ridge Addition, Phase Three, as recorded in Cabinet X, Page 450, Plat Records, Denton County, Texas; THENCE South 89°40'20" West, leaving said west right-of-way line, and along said north line, a distance of 1199.93 feet to a point for corner, said point being in the east right -of-way line of said Burlington Northern Railroad; 116 Exhibit A Legal Description of the Property (439.12 Acres) Exhibit A to The Colony SAP – Legal Description of the Property - Page 19 1775.016\108190.5 THENCE North 87°39'44" West, leaving said north line, leaving said east right-of-way line, a distance of 101.16 feet to a point for corner, for the beginning of a non-tangent curve to the right having a radius of 3703.75 feet and a central angle of 3°44'19" and a long chord which bears South 04°12'25" West, 241.62 feet , said point being in the west right- of-way line of said Burlington Northern Railroad; THENCE along said east right-of-way line, and along said non-tangent curve to the right an arc distance of 241.67 feet to a point for corner; THENCE South 06°04'35" West, continuing along said east right-of-way line, a distance of 2524.64 feet to a point for corner; THENCE North 83°17'00" West, continuing along said east right-of-way line, a distance of 190.16 feet to a point for corner; THENCE South 00°51'51" East, continuing along said east right-of-way line, a distance of 970.10 feet to a point for corner; THENCE South 89°03'50" West, continuing along said east right -of-way line, a distance of 31.06 feet to a point for corner; THENCE South 01°14'37" East, continuing along said east right-of-way line, a distance of 447.78 feet to a point for corner; THENCE North 87°06'22" West, leaving said east right -of-way line, a distance of 1240.48 feet to a point for corner, for the beginning of a non-tangent curve to the left having a radius of 1130.00 feet and a central angle of 103°16'58", and a long chord which bears North 38°43'34" West, 1772.16 feet, said point being in the east right -of-way line of said Plano Parkway; THENCE along said east right-of-way line, and along said non-tangent curve to the left an arc distance of 2036.97 feet to a point for corner; THENCE South 89°38'05" West, continuing along said east right-of-way line, a distance of 647.23 feet to a point for corner, for the beginning of a non-tangent curve to the right having a radius of 950.00 feet and a central angle of 40°05'36" and a long chord which bears North 70°19'29" West, 651.29 feet; THENCE continuing along said east right-of-way line, and along said non-tangent curve to the right an arc distance of 664.77 feet to a point for corner, for the beginning of a reverse curve to the left having a radius of 1050.00 feet and a central angle of 40°15'06" and a long chord which bears North 70°25'01" West, 722.57 feet; THENCE continuing along said east right -of-way line, and along said curve to the left an arc distance of 737.65 feet to a point for corner; THENCE South 89°31'25" West, continuing along said east right-of-way line, a distance of 623.83 feet to a point for corner, for the beginning of a tangent curve to the right having a radius of 950.00 feet, a central angle of 0°48'07", and a long chord which bears South 89°55'28" West, 13.21 feet; THENCE continuing along said east right-of-way line, along said curve to the right, an arc distance of 13.21 feet to a point for corner; THENCE South 00°19'22" West, leaving said east right -of-way line, a distance of 100.00 feet to a point for corner, said point being in the west right-of-way line of said Plano Parkway; THENCE South 89°58'40" West, leaving said west right-of-way line, a distance of 1210.45 feet to a point for corner; THENCE North 00°25'18" West, a distance of 226.47 feet to the POINT OF BEGINNING and CONTAINING 19,128,279 square feet, 439.12 acres of land, more or less. 117 Exhibit A-1 Depiction of the Property Exhibit A-1 to The Colony SAP – Depiction of the Property - Page 20 1775.016\108190.5 118 Exhibit B to The Colony SAP – Official Report - Public Improvement Cost - Page 21 1775.016\108190.5 Exhibit B OFFICIAL REPORT 2022 PUBLIC IMPROVEMENTS COST The City of The Colony Public Improvement District No. 1 The Colony, Texas PREPARED BY: Jeremie Maurina, Executive Business Liaison DATED: August 16th, 2022 119 Exhibit B Official Report - Public Improvements Cost Exhibit B to The Colony SAP – Official Report - Public Improvements Cost - Page 22 1775.016\108190.5 Public Improvements Facility Waterfront Related Development TOTALS Traffic management system $45,624.40 $0 $0 $45,624.40 Enhanced police services $239,542.00 $0 $0 $239,542.00 Enhanced Development Services $0 $0 $0 $0 Street and roadway improvements $406,076.27 $62,022.32 $450,001.41 $918 ,100.00 Lake maintenance $11,942.12 $1,823.99 $13,233.89 $27,000 TOTALS $703,184.79 $63,841.31 $463,235.30 $1,230,266.40 120 Exhibit C-1 Service Plan: Five-Year Projection of Annual Indebtedness Related to 2013 Facility Public Improvements Exhibit C-1 to The Colony SAP - Projection of Annual Indebtedness Related to 2013 Facility Public Improvements Cost - Page 23 1775.016\108190.5 Year Principal1 Semi-Annual Collection Costs2 Delinquent Collection Costs3 Annual Administrative Costs4 Estimated Annual Indebtedness 2022 See Sections 4.2 and 5.9 $5,000 $0 $5,000 See Section 5.9 2023 See Sections 4.2 and 5.9 $5,000 $0 $5,000 See Section 5.9 2024 See Sections 4.2 and 5.9 $5,000 $0 $5,000 See Section 5.9 2025 See Sections 4.2 and 5.9 $5,000 $0 $5,000 See Section 5.9 2026 See Sections 4.2 and 5.9 $5,000 $0 $5,000 See Section 5.9 1. See Section 7, Paragraph 1 for the outstanding Principal Amount of the 2013 Facility Public Improvement Assessment as of September 7th, 2021. The annual indebtedness for the 2013 Public Improvements Cost in any given year is the sum of the Semi-Annual Installments for the Project Infrastructure Bonds for the year. 2. Semi-Annual Collection Costs may be increased or reduced as part of each Service Plan Update. If the Semi-Annual Collection Costs collected are less than the Semi-Annual Collection Costs paid or incurred, the deficit may be carried forward and added to the Semi-Annual Collection Costs for the next year or paid as Semi-Annual Administrative Costs. If the Semi-Annual Collection Costs collected exceed the Semi-Annual Collection Costs paid or incurred, the excess shall be carried forward to reduce the Semi -Annual Collection Costs for the next year. Semi-Annual Collection Costs shall be allocated pro rata among all Parcels with unpaid Assessments. 3. This exhibit includes no Delinquent Collection Costs. The actual amount of Delinquent Collection Costs attributable to a Parce l will, if not paid upon demand, be added to the Semi-Annual Installment for the Parcel as part of the Service Plan Update for the next year. If Delinquent Collection Costs remain unpaid, they will continue to be added to the Semi-Annual Installment for the Parcel as part of the Service Plan Update for the next year. 4. Semi-Annual Administrative Costs (up to the maximum amount determined by the additional interest authorized by Section 372.018(a) of the Act) are estimated and may be increased or reduced as part of each Service Plan Update. If the Semi-Annual Administrative Costs collected are not enough to pay the Semi-Annual Administrative Costs paid or incurred, the deficit may be carried forward and added to the Semi-Annual Administrative Costs for the next year. If the Semi-Annual Administrative Costs collected exceed 121 Exhibit C-1 Service Plan: Five-Year Projection of Annual Indebtedness Related to 2013 Facility Public Improvements Exhibit C-1 to The Colony SAP - Projection of Annual Indebtedness Related to 2013 Facility Public Improvements Cost - Page 24 1775.016\108190.5 the Semi-Annual Administrative Costs paid or incurred, the excess shall be carried forward to reduce the Semi-Annual Administration Costs for the next year. Semi-Annual Administrative Costs shall be allocated pro rata among all Parcels with unpaid Assessments. 122 Exhibit C-2 Service Plan: Five-Year Projection of Annual Indebtedness Related to Additional Facility Public Improvements Exhibit C-2 to The Colony SAP - Projection of Annual Indebtedness Related to Additional Facility Public Improvements Cost - Page 25 1775.016\108190.5 2022 2023 2024 2025 2026 $731,985 $768,584 $807,013 $847,364 $889,732 123 Exhibit C-3 Service Plan: Five-Year Projection of Annual Indebtedness Related to Annual Related Development Public Improvements Exhibit C-3 to The Colony SAP - Projection of Annual Indebtedness Related to Annual Related Development Public Improvements Cost - Page 26 1775.016\108190.5 2022 2023 2024 2025 2026 $572,436 $601,058 $631,111 $662,666 $695,800 124 Exhibit C-4 Exhibit C-4 to The Colony SAP – Form of Notice Required by Texas Property Code Section 5.014 - Page 27 1775.016\108190.5 FORM OF NOTICE REQUIRED BY TEXAS PROPERTY CODE SECTION 5.014 NOTICE OF OBLIGATION TO PAY PUBLIC IMPROVEMENT DISTRICT ASSESSMENTS TO THE CITY OF THE COLONY, TEXAS CONCERNING THE PROPERTY AT: [INSERT STREET ADDRESS] As the purchaser of the real property located at the street address set forth above, you are obligated to pay assessments to the City of The Colony, Texas for the costs of a portion of public improvements or services (the “Authorized Improvements”) undertaken for the benefit of the property within “City of The Colony Public Improvement District No. 1” (the “District”) created under Subchapter A, Chapter 372, Local Government Code, as amended. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS WHICH WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS. The exact amount of the assessment (and the projected annual installments if not paid in full) may be obtained from the City of The Colony, Texas. The exact amount of each annual installment will be approved each year by the City Council of The Colony, Texas in the Annual Service Plan Update for the District. More information about the assessments, including the amounts and due dates, may be obtained from the City of The Colony, Texas. YOUR FAILURE TO PAY ANY ASSESSMENT, OR ANY ANNUAL INSTALLMENT THEREOF, MAY RESULT IN PENALTIES AND INTEREST BEING ADDED TO WHAT YOU OWE OR IN A LIEN ON AND THE FORECLOSURE OF YOUR PROPERTY. The undersigned purchaser acknowledges receipt of this notice prior to the effective date of a binding contract for the purchase of the real property at the street address set forth above. [PURCHASER] By: Name: Title: Date: 125 Exhibit C-4 Exhibit C-4 to The Colony SAP – Form of Notice Required by Texas Property Code Section 5.014 - Page 28 1775.016\108190.5 The attached "Notice of Obligation to Pay Public Improvement District Assessments to the City of The Colony, Texas" is a true and correct copy of the notice required by Texas Property Code, Section 5.014, as amended, provided by Seller to Purchaser on __________, 20___, with current information as required by Texas Property Code, Section 5.0143. IN WITNESS WHEREOF, the undersigned parties have executed this certificate for the purposes stated this ____________, 20____. [PURCHASER] By: Name: Title: Date: STATE OF TEXAS § § COUNTY OF ___________ § This certificate was acknowledged before me by ______________________, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed, in the capacity stated and as the act and deed of the above-referenced entities as an authorized signatory of said entities. Given under my hand and seal of office on this _________________, 20____. __________________________________________ Notary Public, State of Texas [NOTARY SEAL] 126 Exhibit C-4 Exhibit C-4 to The Colony SAP – Form of Notice Required by Texas Property Code Section 5.014 - Page 29 1775.016\108190.5 [SELLER] By: Name: Title: Date: STATE OF TEXAS § § COUNTY OF ___________ § This certificate was acknowledged before me by ______________________, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed, in the capacity stated and as the act and deed of the above-referenced entities as an authorized signatory of said entities. Given under my hand and seal of office on this _________________, 20____. __________________________________________ Notary Public, State of Texas [NOTARY SEAL] 127 Exhibit D to The Colony SAP – Special Benefits Report - Page 30 1775.016\108190.5 Exhibit D Special Benefits Report The City of The Colony Public Improvement District No. 1 The Colony, Texas PREPARED BY: Jeremie Maurina, Executive Business Liaison DATED: August 16th, 2021 128 Exhibit D to The Colony SAP – Special Benefits Report - Page 31 1775.016\108190.5 The Facility is expected to generate eight million customers each year. Given the traffic and security needs of the Facility, above those provided as part of the City's basic municipal services, one hundred percent of the Public Improvements for the traffic management system/control equipment and one hundred percent of the enhanced police services are attributable to the Facility Property. The Facility Property is a single economic unit comprised of two tax parcels. The costs attributable the Public Improvements for the traffic management system and enhanced police services are allocated to the two tax parcels based on acreage. During the development related to the Additional Facility Assessments and Related Development Assessments described in the 2018 Annual Service Plan Update, a series of Enhanced Development Services were identified that provided specific benefits to several individual parcels. Due to the nature of these services and the scope they cover, they are not easily forecasted for inclusion in a budget. Instead, these costs will be reconciled annually and directly assessed to the parcels that benefitted starting with the Additional Facility Assessments and Related Development Assessments levied in accordance with the 2019 Annual Service Plan update (See Exhibit E for adjusted assessments for the current year). This provides a more accurate assessment and allows the costs of those services to be recovered from the properties that have directly benefited from them. The total of these services is $9,040.00 for the 2022-23 assessment. A detailed use report of these Enhanced Development Services is available upon request. The enhanced development services, lake maintenance, and the street and roadway Public Improvements are allocated on a per-acre basis to the Facility Property, the Waterfront Property and the Related Development Property such that the Facility Property is apportioned approximately 44.23 percent (107.47 Facility Property/242.985 total acres); the Waterfront Property is apportioned approximately 6.76 percent (16.421 Waterfront Property/242.985 total acres); and the Related Development Property is apportioned approximately 49.01 percent (119.095 Related Development Property/242.985 total acres). Description of Public Improvements Total Estimated Cost Cost Allocated to Facility Cost Allocated to Waterfront Cost Allocated to Related Development Traffic management system $45,624.40 $45,624.40 $0 $0 Enhanced police services $239,542.00 $239,542.00 $0 $0 Enhanced development services $0 $0 $0 $0 Street and roadway improvement $918,100.00 $406,076.27 $62,022.32 $450,001.41 129 Exhibit D to The Colony SAP – Special Benefits Report - Page 32 1775.016\108190.5 Description of Public Improvements Total Estimated Cost Cost Allocated to Facility Cost Allocated to Waterfront Cost Allocated to Related Development Lake maintenance $27,000 $11,942.12 $1,823.99 $13,233.89 TOTALS $1,230,266.40 $703,184.79 $63,846.31 $463,235.30 130 Exhibit D-1 Public Improvements Cost – Special Benefit Analysis Exhibit D-1 to The Colony SAP – Facility Public Improvements Cost Special Benefit Analysis - Page 33 1775.016\108190.5 Public Improvements TOTALS Special Benefit to Facility Property Special Benefit to Waterfront Property Special Benefit to Related Development Property Traffic management system $45,624.40 100% 0% 0% Enhanced police services $239,542.00 100% 0 0% Enhanced development services $0 44.23% 6.76% 49.01% Street and roadway improvements $918,100.00 44.23% 6.76% 49.01% Lake maintenance $27,000.00 44.23% 6.76% 49.01% TOTALS $1,230,266.40 131 Exhibit E Assessment Roll Exhibit E to The Colony SAP – Assessment Roll - Page 34 1775.016\108190.5 1. Outstanding 2013 Facility Public Improvement Assessment levied against Facility Property consisting of Tax Parcels No. 657618 and 657619 is $79,839,319.34. 2. Assessment Roll for Additional Facility Public Improvements and Related Development Public Improvements as levied by the 2022 Assessment Ordinance: Tax Parcel Assessment Facility Property ($731,985.36) #657618 – 81.99 acres ~76.29% $558,439.37 #657619 – 25.48 acres ~23.71% $173,545.98 Waterfront Property ($68,245.18) #957987 – 13.774 acres~83.91% $57,267.00 #704832 – 0.675 acres~4.11% $2,806.39 #957988 - .506 acres ~3.08% $2,103.75 #957989 – 0.2976 acres ~1.81% $1,237.31 #957990 – 0.2717 acres ~ 1.66% $1,129.62 #957991 – 0.4838 acres ~ 2.95% $2,011.45 #957992 – 0.4064 acres ~ 2.48% $1,689.66 Related Development Property ( $504,191.22) #692390 – 2.015 acres ~ 1.69% $8,377.60 #692391 – 2.105 acres ~ 1.77% $ 8,751.78 #653843 – 2.944 acres ~ 2.47% $14,330.02 #653844 – 2.683 acres ~ 2.25% $11,154.88 #674231 – 3.386 acres ~ 2.84% $14,077.69 #692387 – 1.903 acres ~ 1.60% $ 7,911.94 #692388 – 0.301 acres ~ 0.25% $1,251.44 #692379 – 2.931 acres ~2.46% $12,185.97 #692380 – 0.204 acres ~ 0.17% $ 848.15 #732382 – 8.551 acres ~ 7.18% $35,551.77 #748393 – 79.089 acres ~ 66.41% $332,623.12 #753491 – 5.839 acres ~ 4.9% $24,275.84 #753492 – 1.574 acres ~ 1.32% $6,543.09 #674218-3.645 acres ~3.06% $18,304.51 #692389-1.925 acres ~1.62% $8,003.41 132 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 35 1775.016\108190.5 133 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 36 1775.016\108190.5 134 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 37 1775.016\108190.5 135 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 38 1775.016\108190.5 136 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 39 1775.016\108190.5 137 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 40 1775.016\108190.5 138 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 41 1775.016\108190.5 139 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 42 1775.016\108190.5 140 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 43 1775.016\108190.5 141 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 44 1775.016\108190.5 142 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 45 1775.016\108190.5 143 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 46 1775.016\108190.5 144 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 47 1775.016\108190.5 145 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 48 1775.016\108190.5 146 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 49 1775.016\108190.5 Below is a summary of prior legislative actions of the City Council for the District, including the levy of all Assessments against benefitted property within the District. This Exhibit F shall be updated with each Annual Service Plan Update. Items marked with an (**) were validated as part of the matter styled Ex Parte City of The Colony in the 53rd District Court of Travis County, Texas (the "Bond Validation Suit") for which a Final Judgment was issued on January 18, 2012. September 17, 2012** Landowner petition ("PID Creation Petition") for the establishment of the District is submitted to the City and filed with the City Secretary. September 18, 2012 City Council approved Resolution No. 2012-067 accepting the PID Creation Petition and calling a public hearing on the creation of the District for October 8, 2012. September 21, 2012** Notice of "City of The Colony, Texas, Notice of Public Hearing Regarding the Proposed Establishment of City of The Colony Public Improvement District No. 1" is mailed to "Property Owners" as required by the Act. September 22, 2012** Notice of "City of The Colony, Texas, Notice of Public Hearing Regarding the Proposed Establishment of City of The Colony Public Improvement District No. 1" is published in the Denton Record Chronicle as required by the Act. September 26, 2012** City Council by motion accepts and approves PID Creation Petition, waiver of the 15-day notice for the public hearing on the creation of the District to be held on October 8, 2012, and waiver of the 20-day protest period for the commencement of construction of the Authorized Improvements. October 8, 2012** After considering all written and documentary evidence presented at the public hearing described above, City Council approved Resolution No. 2012-073 authorizing the creation of the District. October 9, 2012** Publication of Resolution No. 2012-073 authorizing the creation of the District as required by the Act. December 11, 2012 City Council approved Resolution No. 2012-100 accepting a preliminary service and assessment plan, proposed assessment roll and proposed reimbursement agreement for the District and calling a public hearing ("2013 Assessment Hearing") for January 15, 2013 to consider an ordinance levying assessments on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. December 17, 2012** Notice of "City of The Colony, Texas, Notice of Public Hearing on Assessment Ordinance for the City of The Colony Public Improvement District No. 1" is mailed to "Property Owners" as required by the Act. December 19, 2012** Notice of "City of The Colony, Texas, Notice of Public Hearing on Assessment Ordinance for the City of The Colony Public Improvement District No. 1" is published in the Denton Record Chronicle as required by the Act. January 15, 2013 City Council conducted the 2013 Assessment Public Hearing and approved a motion to continue the 2013 Assessment Public Hearing to February 7, 2013. February 7, 2013** After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2013-1992, recorded as Instrument No. 2013-20487 in the real property records of Denton County, Texas (the 147 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 50 1775.016\108190.5 “2013 Assessment Ordinance”), which (i) approved and accepted the “City of The Colony, Texas, Public Improvement District No. 1 Service and Assessment Plan” dated February 7, 2013 (the “Original Service and Assessment Plan”), (ii) levied the 2013 Facility Public Improvement Assessment against the Facility Property for the 2013 Public Improvements as shown on the Assessment Roll attached as Exhibit G to the Original Service and Assessment Plan, and (iii) deferred levying the 2013 Related Development Deferred Assessment for the portion of the 2013 Public Improvements Cost that specially benefits the Related Development Property. City Council approved Resolution No 2013-008 approving the 2013 LGC Sales Tax Bonds, the 2013A LGC Sales Tax Bonds, and the 2013 LGC Tax Bonds and approving the 2013 LGC Sales Tax Bonds Reimbursement Agreement and the 2013 LGC Tax Bonds Reimbursement Agreement. City Council approved Resolution No. 2013-009 approving the 2013 Type A Bonds and approving the 2013 Type A Bonds Reimbursement Agreement. City Council approved Resolution No. 2013-010 approving the 2013 Type B Bonds and approving the 2013 Type B Bonds Reimbursement Agreement. April 21, 2015 City Council approved Resolution No. 2015-042 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2015 Annual Service and Assessment Plan, dated March 17, 2015, including proposed assessment roll for the District and calling a public hearing ("2015 Assessment Public Hearing") for May 5, 2015 to consider an ordinance levying assessments in the aggregate amount of $1,379,301.00 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. May 5, 2015 After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2015 Assessment Public Hearing. After considering all written and documentary evidence presented at the duly noticed public hearing described above, the City Council approved Ordinance No. 2015-2136 (the "2015 Assessment Ordinance") which approved the 2015 Annual Service Plan Update and levied Assessments in the aggregate amount of $1,379,301 consisting of: (i) $959,247.96 against the Facility Property for costs of Additional Facility Public Improvements (the "2015 Facility Assessment"), (ii) $369,143.53 for Boardwalk Public Improvement Costs (as defined in the 2015 Annual Service Plan Update) and $50,909.51 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $420,053.04 amount is referred to as the "2015 Related Development Assessment") August 18, 2015 City Council approved Resolution No. 2015-066 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2015-16 Annual Service and Assessment Plan, dated August 13, 2015, including proposed assessment roll for the District, and calling a public hearing ("2015-16 Assessment Public Hearing") for September 1, 2015 to consider an ordinance levying assessments in the aggregate amount of $1,454,992.00 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. 148 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 51 1775.016\108190.5 September 15, 2015 After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2015-16 Assessment Public Hearing. After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2015-2160 (the "2015 Assessment Ordinance") which approved the 2015 Annual Service Plan Update and levied Assessments in the aggregate amount of $1,454,992 consisting of: (i) $1,218,234.83 against the Facility Property for costs of Additional Facility Public Improvements (the "2015 Facility Assessment"), (ii) $148,428.69 for Boardwalk Public Improvement Costs (as defined in the 2015 Annual Service Plan Update) and $88,328.48 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $236,757.17 amount is referred to as the "2015 Related Development Assessment") August 16, 2016 City Council approved Resolution No. 2016-049 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2016-17 Annual Service and Assessment Plan, dated August 10, 2016, including proposed assessment roll for the District, and calling a public hearing ("2016 Assessment Public Hearing") for September 6, 2016 to consider an ordinance levying assessments in the aggregate amount of $1,162,836.00 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. September 6, 2016 After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2016 Assessment Public Hearing. After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2016-2232 (the "2016 Assessment Ordinance") which approved the 2016 Annual Service Plan Update and levied Assessments in the aggregate amount of $1,162,836.00 consisting of: (i) $875,155.64 against the Facility Property for costs of Additional Facility Public Improvements (the "2016 Facility Assessment"), (ii) $120,673.24 for Boardwalk Public Improvement Costs (as defined in the 2016 Annual Service Plan Update) and $167,007.12 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $287,681.36 amount is referred to as the "2016 Related Development Assessment"). September 5, 2017 City Council approved Resolution No. 2017-078 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2017-18 Annual Service and Assessment Plan, dated August 16, 2017, including proposed assessment roll for the District, and calling a public hearing ("2017 Assessment Public Hearing") for September 19, 2017 to consider an ordinance levying assessments in the aggregate amount of $1,531,458.00 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. September 19, 2017 After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2017 Assessment Public Hearing. After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2017-2283 (the "2017 Assessment Ordinance") which approved the 2017 Annual Service Plan Update and levied Assessments in the aggregate amount of $1,531,458 consisting of: (i) $658,465 against the Facility Property for costs of Additional Facility Public Improvements (the "2017 Facility 149 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 52 1775.016\108190.5 Assessment"), (ii) $402,978 for Waterfront Public Improvement Costs (as defined in the 2017 Annual Service Plan Update) and $470,015 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $872,993 amount is referred to as the "2017 Related Development Assessment"). August 21, 2018 City Council approved Resolution No. 2018-071 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2018-19 Annual Service and Assessment Plan, dated August 16, 2018, including proposed assessment roll for the District, and calling a public hearing ("2018 Assessment Public Hearing") for September 18, 2018 to consider an ordinance levying assessments in the aggregate amount of $1,497,805.98 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. September 18, 2018 After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2018 Assessment Public Hearing. After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2018-2235 (the "2018 Assessment Ordinance") which approved the 2018 Annual Service Plan Update and levied Assessments in the aggregate amount of $1,497,805.98 consisting of: (i) $810,379.62 against the Facility Property for costs of Additional Facility Public Improvements (the "2018 Facility Assessment"), (ii) $83,293.66 for Waterfront Public Improvement Costs (as defined in the 2018 Annual Service Plan Update) and $604,132.70 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $687,426.36 amount is referred to as the "2018 Related Development Assessment"). August 20, 2019 City Council approved Resolution No. 2019-065 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2019-20 Annual Service and Assessment Plan, dated August 15, 2019, including proposed assessment roll for the District, and calling a public hearing ("2019 Assessment Public Hearing") for September 17, 2019 to consider an ordinance levying assessments in the aggregate amount of $1,061,109.02 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. September 17, 2019 After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2019 Assessment Public Hearing. After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2019-2376 (the "2019 Assessment Ordinance") which approved the 2019 Annual Service Plan Update and levied Assessments in the aggregate amount of $1,061,109.02 consisting of: (i) $570,667.99 against the Facility Property for costs of Additional Facility Public Improvements (the "2019 Facility Assessment"), (ii) $49,965.50 for Waterfront Public Improvement Costs (as defined in the 2019 Annual Service Plan Update) and $440,475.53 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $490,441.03 amount is referred to as the "2019 Related Development Assessment"). 150 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 53 1775.016\108190.5 August 5, 2020 City Council approved Ordinance No. 2020-2403 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2020-21 Annual Service and Assessment Plan, dated August 13, 2020, including proposed assessment roll for the District, and calling a public hearing ("2020 Assessment Public Hearing") for September 15, 2020 to consider an ordinance levying assessments in the aggregate amount of $1,061,109.02 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. September 15, 2020 After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2020 Assessment Public Hearing. After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2020-2407 (the "2020 Assessment Ordinance") which approved the 2020 Annual Service Plan Update and levied Assessments in the aggregate amount of $1,061,109.02 consisting of: (i) $570,667.99 against the Facility Property for costs of Additional Facility Public Improvements (the "2020 Facility Assessment"), (ii) $49,965.50 for Waterfront Public Improvement Costs (as shown in Exhibit B of the 2020 Assessment Ordinance) and $440,475.53 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $490,441.03 amount is referred to as the "2020 Related Development Assessment"). January 19, 2021 City Council approved Ordinance No. 2021-2430 approving an Approving an Amended and Restated Service and Assessment Plan for the District, Including Assessment Roll for The City of The Colony Public Improvement District No. 1. City Council approved Resolution No. 2021-006 approving and Consenting to The Colony Local Development Corporation Tax Increment Contract Revenue Refunding Bonds (Nebraska Furniture Mart Texas Project) Taxable Series 2021. August 17th, 2021 City Council approved Resolution No. 2021-053 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2021-22 Annual Service and Assessment Plan, dated August 13, 2020, including proposed assessment roll for the District, and calling a public hearing ("2021 Assessment Public Hearing") for September 7, 2021 to consider an ordinance levying assessments in the aggregate amount of $902,327on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. September 7th, 2021 After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2021 Assessment Public Hearing. After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2021-2449 (the "2021 Assessment Ordinance") which approved the 2021 Annual Service Plan Update and levied Assessments in the aggregate amount of $902,327 consisting of: (i) $535,879.94 against the Facility Property for costs of Additional Facility Public Improvements (the "2021 Facility Assessment"), (ii) $41,034.82 for Waterfront Public Improvement Costs (as shown in Exhibit B of the 2021 Assessment Ordinance) and $325,412.13 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $366,446.95 amount is referred to as the "2021 Related Development Assessment"). 151 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 54 1775.016\108190.5 [August 16th, 2022] City Council approved Ordinance No. 2022-_____ accepting the City of The Colony Public Improvement District No. 1 Preliminary 2022-23 Annual Service and Assessment Plan, dated August 14th, 2022, including proposed assessment roll for the District, and calling a public hearing ("2022 Assessment Public Hearing") for September 6, 2022 to consider an ordinance levying assessments in the aggregate amount of $1,304,422 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. [September 6th, 2022] After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2022 Assessment Public Hearing. After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2022-______ (the "2022 Assessment Ordinance") which approved the 2022 Annual Service Plan Update and levied Assessments in the aggregate amount of $1,304,421.76 consisting of: (i) $731,985.36 against the Facility Property for costs of Additional Facility Public Improvements (the "2022 Facility Assessment"), (ii) $68,245.18 for Waterfront Public Improvement Costs (as shown in Exhibit B of the 2022 Assessment Ordinance) and $504,191.22 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $572,436.40 amount is referred to as the "2021 Related Development Assessment"). 152 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2022 - __________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, ACCEPTING A PRELIMINARY SERVICE AND ASSESSMENT PLAN FOR THE CITY OF THE COLONY PUBLIC IMPROVEMENT DISTRICT NO. 1, INCLUDING A DETERMINATION OF COST, A SERVICE PLAN, AN ASSESSMENT PLAN, AND AN ASSESSMENT ROLL; ORDERING A PUBLIC HEARING FOR TUESDAY, AUGUST 16, 2022, TO CONSIDER AN ORDINANCE LEVYING SPECIAL ASSESSMENTS AGAINST PROPERTIES WITHIN THE CITY OF THE COLONY PUBLIC IMPROVEMENT DISTRICT NO. 1 THAT ARE SPECIALLY BENEFITED BY THE PUBLIC IMPROVEMENTS AND SUPPLEMENTAL SERVICES BEING PROVIDED FOR FISCAL YEAR 2022-2023; AUTHORIZING AND DIRECTING THE PUBLICATION AND MAILING OF NOTICES FOR SAID PUBLIC HEARING; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Chapter 372 of the Texas Local Government Code authorize the City of The Colony, Texas, to create a public improvement district within the City of The Colony, Texas; and WHEREAS, on Monday, September 17, 2012, there was presented to the City of The Colony, Texas (hereinafter referred to as the “City”) a petition seeking the authorization to establish a public improvement district (hereinafter referred to as the “District”) within the City pursuant to Chapter 372 of the Texas Local Government Code, as amended; and WHEREAS, on Tuesday, September 18, 2012, the City Council for the City approved Resolution No. 2012-067, ordering a public hearing for October 8, 2012, to consider a resolution creating the District; and WHEREAS, on Tuesday, October 8, 2012, the City Council for the City approved Resolution No. 2012-073, creating the City of The Colony Public Improvement District No. 1; and WHEREAS, on Tuesday, August 16, 2022, the City Council proposes to accept the City of The Colony Public Improvement District No. 1, Preliminary 2022-2023 Annual Service and Assessment Plan, dated August 8, 2022, for properties within the District, including (i) a determination of the cost of the public improvements and supplemental services being provided for the special benefit of the District; (ii) a service plan; (iii) an assessment plan; and (iv) an assessment roll (collectively, the “Preliminary 2022-2023 Annual SAP”), which Preliminary 2022-2023 Annual SAP is attached hereto as Exhibit A; and WHEREAS, the City Council proposes a public hearing for Tuesday, August 16, 2022, to consider an ordinance levying assessments against the Property to pay for the public improvements identified in the Preliminary 2022-2023 Annual SAP that will confer a special benefit on the Property 153 and authorizes and directs the City Secretary to publish and mail notices of said public hearing in accordance with the Act. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THAT: SECTION 1. The findings set forth above are incorporated into the body of this Resolution as if fully set forth herein. SECTION 2. That the City Council of the City of The Colony, Texas, does hereby accept the Preliminary 2022-2023 Annual Service and Assessment Plan for the District and proposed assessment roll for the City of The Colony Public Improvement District No. 1, a copy of which is attached hereto as Exhibit A, and is incorporated for all purposes. SECTION 3. That the City Council of the City of The Colony, Texas, does hereby order a public hearing to be held on Tuesday, August 16th, 2022 at 6:30 p.m., at City Hall, located at 6800 Main Street, The Colony, Texas, for the purpose of hearing public testimony concerning the levy of special assessments in the aggregate amount of $902,327 against the property within the District to pay for public improvements and enhanced services that will confer a special benefit on the properties located within the City of The Colony Public Improvement District No. 1. SECTION 4. At such time and place the City Council will hear testimony regarding the adoption of an ordinance levying special assessments against the properties in accordance with section 372.017 of the Act. SECTION 5. Notices of public hearing were mailed to affected landowners within the boundaries of the proposed District consistent with Section 372.016(c) of the Texas Local Government Code. SECTION 6. If any section, article paragraph, sentence, clause, phrase or word in this Resolution, or application thereto any persons or circumstances is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Resolution; and the City Council hereby declares it would have passed such remaining portions of this Resolution despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 7. This Resolution shall become effective from and after its date of passage in accordance with law. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS 16th DAY OF AUGUST 2022. 154 Richard Boyer, Mayor City of The Colony, Texas ATTEST: Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: Jeffrey L. Moore, City Attorney 155 Exhibit A City of The Colony Public Improvement District No. 1, Preliminary 2022-23 Annual Service and Assessment Plan 156 Agenda Item No:5.4 CITY COUNCIL Agenda Item Report Meeting Date: August 16, 2022 Submitted by: Joe Perez Submitting Department: General Admin Item Type: Ordinance Agenda Section: Subject: Discuss and consider an ordinance amendment to Chapter 8 Article III. Hotel Occupancy Tax addressing short-term rentals and the payment of hotel occupancy tax. (Perez) Suggested Action: Attachments: Ord. 2002-xxxx Hotel Occupancy Tax - redline .pdf Ord. 2022-xxxx Hotel Occupancy Tax.pdf 157 CITY OF THE COLONY, TEXAS ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, AMENDING CHAPTER 8, ARTICLE III, ENTITLED “HOTEL OCCUPANCY TAX” BY AMENDING SECTIONS 8-75 TO 8-77, AND 8-84, AND ADDING SECTIONS 8-86 TO 8-88 TO ADDRESS SHORT-TERM RENTALS AND THE PAYMENT OF HOTEL OCCUPANCY TAX; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING A PENALTY OF A FINE NOT TO EXCEED TWO THOUSAND DOLLARS ($2,000) FOR EACH AND EVERY OFFENSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of The Colony, Texas, has discussed and considered such revisions and has determined that it is in the best interest of the City of The Colony, Texas, to amend and add various sections of Chapter 8, Article III, entitled “Hotel Occupancy Tax” to better address the payment of Hotel Occupancy Tax by short-term rentals consistent State law. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. The findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. SECTION 2. That the Code of Ordinances of the City of The Colony, Texas, is hereby amended by amending Chapter 8, Article III, entitled “Hotel Occupancy Tax,” by amending sections 8-75 to 8-77, which shall read as follows: “ARTICLE III. - HOTEL OCCUPANCY TAX AND SHORT TERM RENTALS Sec. 8-75. - Definitions. In this article: (1) Consideration means the cost of a hotel or short-term rental room only if the room is ordinarily used for sleeping, and does not include the cost of any food served or personal services rendered to the room or a person in the room unless related to the cleaning and readying of the room for occupancy. (2) Designated operator shall mean the operator of a short-term rental facility who resides in Denton County, Texas, and will be present in Denton County and available at all times the rental is in use. 158 (3) Hotel means a building in which members of the public may obtain sleeping accommodations for consideration. The term includes a hotel, motel, tourist home, tourist house, tourist court, lodging house, inn, rooming house, or other building where a room is furnished for a consideration, but does not include a hospital, sanitarium, or nursing home. (4) Licensee shall mean a person or legal entity issued a short-term rental facility license. (5) Owner shall mean an individual person, proprietorship, partnership, corporation, association, or other legal entity. (6) Short term rental shall mean a residential dwelling unit(s) that is rented out for compensation on a temporary basis for a period of less than 30 consecutive days. (7) Tourism means the guidance or management of tourists. (8) Tourist means an individual who travels from the individual's residence to a different municipality, county, state, or country for pleasure, recreation, education, or culture. Sec. 8-76. - Tax levied; exceptions. (a) A tax of seven percent of the consideration paid for a hotel or short-term rental room is levied, within the city limits, on a person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays the consideration for the use or possession or for the right to the use or possession of a hotel or short-term rental room that costs $2.00 or more each day and is ordinarily used for sleeping. (b) This article does not impose a tax on: (1) A person who has the right to use or possess a hotel room for at least 30 consecutive days, so long as there is no interruption of payment for the period; or (2) The United States, a governmental entity of the United States, or an officer or employee of the United States. (c) Except as otherwise provided in V.T.C.A Tax Code, § 156.103, as amended, the state, or an agency, institution, board, or commission of the state other than an institution of higher education, as that term is defined by V.T.C.A. Education Code § 61.003, as amended, shall pay the tax imposed by this article and is entitled to a refund of the amount of tax paid.(d)A person entitled to a refund of tax paid under this section shall make an application for a refund in the form prescribed by the city. Sec. 8-77. - Collection of tax generally. (a) On behalf of the city, the City Manager is hereby authorized to engage and contract with a third party service to collect and remit the city’s portion of hotel occupancy tax within 159 the city limits, on a person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays the consideration for the use or possession or for the right to the use or possession of a hotel or short-term rental room that costs $2.00 or more each day and is ordinarily used for sleeping. (b) A person who owns, operates, manages, or controls a hotel or short-term rental or collects payment for the use or possession or for the right to the use or possession of a room shall comply with the third-party service contracted by the city to collect the tax levied by this article for the city. (c) A person who collects the tax shall deposit the tax proceeds into a separate liability account and may not use the tax proceeds for any purpose other than payment to the city. (d) Every person owning, operating, managing or controlling any hotel shall collect the tax levied by this article for the city. The hotel operator shall be entitled to one percent of the hotel occupancy tax revenues collected as reimbursement for the operator's administrative costs for collecting the tax. However, as further described in this article, this reimbursement may be forfeited at the discretion of the city if the hotel operator fails to timely pay over the tax or timely file a report as required by the city or files a false report with the city. (e) A person who owns, operates, manages, or controls a short-term rental or collects payment for the use or possession or for the right to the use or possession of a short-term rental room shall comply with the third-party service contracted by the city to collect the tax levied by this article for the city.” SECTION 3. That the Code of Ordinances of the City of The Colony, Texas, is hereby amended by amending Chapter 8, Article III, Section 8-84, entitled “Additional enforcement authority,” which shall read as follows: “Sec. 8-84. - Additional enforcement authority. The City may take the following actions against a person who has failed to file a required report, failed to collect the tax imposed, failed to pay the taxes over to the city when due, or filed a false report: (1) Bring suit to collect the unpaid tax or to enjoin the person from operating a hotel or short - term rental in the city until the tax is paid or the report filed, as applicable, as provided by the court's order; and (2) Any other remedy provided under state law or as provided in Section 8-88 of this code.” SECTION 4. That the Code of Ordinances of the City of The Colony, Texas, is hereby amended by amending Chapter 8, Article III, by adding Sections 8-86 to 8-88, which shall read as follows: 160 “Sec 8-86. - Short-term rental facility license required. (a) It shall be unlawful to operate a short-term rental facility without a short-term rental facility license in violation of any provision of a short-term rental facility license, this article, or any other applicable city ordinance or other law. (b) License application and review: (1) To obtain a license for a short-term rental facility, a person must submit an application on a form provided for that purpose to the city’s third-party collection service. The application must contain the following: (A) The name, street address, mailing address, email address, and telephone number of the applicant, the owner, and the designated operator of the short-term rental facility. The applicant must assign a "designated operator" who resides in Denton County, Texas and shall be present in Denton County and available at all times the rental is in use. (B) If the applicant or owner is a partnership, a corporation, or limited liability company, the application shall list the names of all partners, directors, members, and officers, as applicable, of the applicant and the owner. (C) A short-term rental facility license shall be valid from the date of issuance unless otherwise suspended or revoked in accordance with section 8-87. (c) Operation of a short-term rental facility. (1) The licensee shall comply with the noise requirements set forth in article IX of chapter 6 of this Code. (2) The licensee will comply with all building, electrical, and other codes and ordinances of the city. (3) Functions such as meetings, receptions, weddings and other social events provided for compensation or held by guests are not permitted as part of the short- term rental facility unless such facility is located in a commercial zoning district. (4) Lighting. If the property is residentially zoned, all lighting must be directed toward the establishment and not at adjacent properties. (5) Occupancy. The maximum number of adults allowed to reside in short-term rental facility is two (2) adults per bedroom plus two (2) additional adults per rental unit. (56) Signage. No on-premise signage shall be allowed advertising the property as a short-term rental consistent with the code and state law. 161 Sec. 8-87. Revocation, suspension or denial of a license. The City Manager or designee may immediately revoke or suspend the license, or deny either the issuance or renewal thereof, if it is found that: (1) The licensee, designated operator, or guest has violated or failed to meet any of the provisions of this article or conditions of the license; (2) The licensee, designated operator, or guest has violated any federal, state, or city l aw, or regulation pertaining to the use of the property as a short-term rental facility; (3) The chief of the police department or the chief of the fire department has determined that the short-term rental facility would pose a serious threat to public health, safety, or welfare; or (4) The applicant has made a false statement of material fact on an application for a short- term rental facility license. Sec. 8-88. Notice to applicant/license; appeals. (a) Upon denial, suspension or revocation, the City Manager or designee shall notify the applicant or licensee in writing either in person or by certified mail to the address listed on the application of the action taken and the reasons therefore. A person may appeal a decision to deny, revoke, or suspend a license to the city council. Appeals shall be submitted to the city secretary in writing within fifteen (15) days following the date the applicant or licensee receives the decision. A hearing on the denial, suspension, or revocation will be scheduled for the next regular meeting of the city council that is more than six (6) days away. The council will render a decision on the appeal within ten (10) days of the hearing. A licensee shall not operate the short-term rental facility during the appeal process. (b) At the appeal hearing on a denial of an initial license application, the appealing party must present evidence clearly indicating that the City Manager or designee was incorrect in determining that the stated grounds for the license denial existed. (c) At the appeal hearing on a license suspension, revocation, or refusal to renew, the City Manager or designee must present evidence clearly indicating that the stated grounds for such action existed. Sec. 8-89. - Reserved.” SECTION 4. If any section, article paragraph, sentence, clause, phrase or word in this Ordinance, or application thereto any persons or circumstances is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remainin g portions of this Ordinance; and the City Council hereby declares it would have passed such 162 remaining portions of this Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 5. That all provisions of the Ordinances of the City of The Colony, Texas, in conflict with the provisions of this Ordinance be, and the same are hereby amended, repealed, and all other provisions of the Ordinances of the City not in conflict with the provisions of this Ordinance shall remain in full force and effect. SECTION 6. Any person, firm, or corporation violating any of the provisions of this Ordinance shall be deemed guilty of a misdemeanor and, upon conviction in the municipal court of the City of The Colony, Texas, shall be punished by a fine not to exceed the sum of Two Thousand Dollars ($2,000.00) for each offense. Every day a violation occurs shall constitute a separate offense. SECTION 7. This Ordinance shall become effective immediately upon its passage and publication as required by law. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS 16th day of AUGUST , 2022. Richard Boyer, Mayor ATTEST: Tina Stewart, TRMC, CMC City Secretary APPROVED AS TO FORM: Jeff Moore, City Attorney 163 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2022 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, AMENDING CHAPTER 8, ARTICLE III, ENTITLED “HOTEL OCCUPANCY TAX” BY AMENDING SECTIONS 8-75 TO 8-77, AND 8-84, AND ADDING SECTIONS 8-86 TO 8-88 TO ADDRESS SHORT- TERM RENTALS AND THE PAYMENT OF HOTEL OCCUPANCY TAX; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING A PENALTY OF A FINE NOT TO EXCEED TWO THOUSAND DOLLARS ($2,000) FOR EACH AND EVERY OFFENSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of The Colony, Texas, has discussed and considered such revisions and has determined that it is in the best interest of the City of The Colony, Texas, to amend and add various sections of Chapter 8, Article III, entitled “Hotel Occupancy Tax” to better address the payment of Hotel Occupancy Tax by short-term rentals consistent State law. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. The findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. SECTION 2. That the Code of Ordinances of the City of The Colony, Texas, is hereby amended by amending Chapter 8, Article III, entitled “Hotel Occupancy Tax,” by amending sections 8-75 to 8-77, which shall read as follows: “ARTICLE III. - HOTEL OCCUPANCY TAX AND SHORT TERM RENTALS Sec. 8-75. - Definitions. In this article: (1) Consideration means the cost of a hotel or short-term rental room only if the room is ordinarily used for sleeping, and does not include the cost of any food served or personal services rendered to the room or a person in the room unless related to the cleaning and readying of the room for occupancy. (2) Designated operator shall mean the operator of a short-term rental facility who resides in Denton County, Texas, and will be present in Denton County and available at all times the rental is in use. (3) Hotel means a building in which members of the public may obtain sleeping accommodations for consideration. The term includes a hotel, motel, tourist home, tourist 164 house, tourist court, lodging house, inn, rooming house, or other building where a room is furnished for a consideration, but does not include a hospital, sanitarium, or nursing home. (4) Licensee shall mean a person or legal entity issued a short-term rental facility license. (5) Owner shall mean an individual person, proprietorship, partnership, corporation, association, or other legal entity. (6) Short term rental shall mean a residential dwelling unit(s) that is rented out for compensation on a temporary basis for a period of less than 30 consecutive days. (7) Tourism means the guidance or management of tourists. (8) Tourist means an individual who travels from the individual's residence to a different municipality, county, state, or country for pleasure, recreation, education, or culture. Sec. 8-76. - Tax levied; exceptions. (a) A tax of seven percent of the consideration paid for a hotel or short-term rental room is levied, within the city limits, on a person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays the consideration for the use or possession or for the right to the use or possession of a hotel or short-term rental room that costs $2.00 or more each day and is ordinarily used for sleeping. (b) This article does not impose a tax on: (1) A person who has the right to use or possess a hotel room for at least 30 consecutive days, so long as there is no interruption of payment for the period; or (2) The United States, a governmental entity of the United States, or an officer or employee of the United States. (c) Except as otherwise provided in V.T.C.A Tax Code, § 156.103, as amended, the state, or an agency, institution, board, or commission of the state other than an institution of higher education, as that term is defined by V.T.C.A. Education Code § 61.003, as amended, shall pay the tax imposed by this article and is entitled to a refund of the amount of tax paid.(d)A person entitled to a refund of tax paid under this section shall make an application for a refund in the form prescribed by the city. Sec. 8-77. - Collection of tax generally. (a) On behalf of the city, the City Manager is hereby authorized to engage and contract with a third party service to collect and remit the city’s portion of hotel occupancy tax, on a person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays the consideration for the use or possession or for the right to the use or 165 possession of a hotel or short-term rental room that costs $2.00 or more each day and is ordinarily used for sleeping. (b) A person who owns, operates, manages, or controls a hotel or short-term rental or collects payment for the use or possession or for the right to the use or possession of a room shall comply with the third-party service contracted by the city to collect the tax levied b y this article for the city. (c) A person who collects the tax shall deposit the tax proceeds into a separate liability account and may not use the tax proceeds for any purpose other than payment to the city. (d) Every person owning, operating, managing or controlling any hotel shall collect the tax levied by this article for the city. The hotel operator shall be entitled to one percent of the hotel occupancy tax revenues collected as reimbursement for the operator's administrative costs for collecting the tax. However, as further described in this article, this reimbursement may be forfeited at the discretion of the city if the hotel operator fails to timely pay over the tax or timely file a report as required by the city or files a false report with the city. (e) A person who owns, operates, manages, or controls a short-term rental or collects payment for the use or possession or for the right to the use or possession of a short-term rental room shall comply with the third-party service contracted by the city to collect the tax levied by this article for the city.” SECTION 3. That the Code of Ordinances of the City of The Colony, Texas, is hereby amended by amending Chapter 8, Article III, Section 8-84, entitled “Additional enforcement authority,” which shall read as follows: “Sec. 8-84. - Additional enforcement authority. The City may take the following actions against a person who has failed to file a required report, failed to collect the tax imposed, failed to pay the taxes over to the city wh en due, or filed a false report: (1) Bring suit to collect the unpaid tax or to enjoin the person from operating a hotel or short- term rental in the city until the tax is paid or the report filed, as applicable, as provided by the court's order; and (2) Any other remedy provided under state law or as provided in Section 8-88 of this code.” SECTION 4. That the Code of Ordinances of the City of The Colony, Texas, is hereby amended by amending Chapter 8, Article III, by adding Sections 8-86 to 8-88, which shall read as follows: “Sec 8-86. - Short-term rental facility license required. 166 (a) It shall be unlawful to operate a short-term rental facility without a short-term rental facility license in violation of any provision of a short-term rental facility license, this article, or any other applicable city ordinance or other law. (b) License application and review: (1) To obtain a license for a short-term rental facility, a person must submit an application on a form provided for that purpose to the city’s third-party collection service. The application must contain the following: (A) The name, street address, mailing address, email address, and telephone number of the applicant, the owner, and the designated operator of the short- term rental facility. The applicant must assign a "designated operator" who resides in Denton County, Texas and shall be present in Denton County and available at all times the rental is in use. (B) If the applicant or owner is a partnership, a corporation, or limited liability company, the application shall list the names of all partners, directors, members, and officers, as applicable, of the applicant and the owner. (C) A short-term rental facility license shall be valid from the date of issuance unless otherwise suspended or revoked in accordance with section 8-87. (c) Operation of a short-term rental facility. (1) The licensee shall comply with the noise requirements set forth in article IX of chapter 6 of this Code. (2) The licensee will comply with all building, electrical, and other codes and ordinances of the city. (3) Functions such as meetings, receptions, weddings and other social events provided for compensation or held by guests are not permitted as part of the short-term rental facility unless such facility is located in a commercial zoning district. (4) Lighting. If the property is residentially zoned, all lighting must be directed toward the establishment and not at adjacent properties. (5) Signage. No on-premise signage shall be allowed advertising the property as a short-term rental consistent with the code and state law. Sec. 8-87. Revocation, suspension or denial of a license. The City Manager or designee may immediately revoke or suspend the license, or deny either the issuance or renewal thereof, if it is found that: 167 (1) The licensee, designated operator, or guest has violated or failed to meet any of the provisions of this article or conditions of the license; (2) The licensee, designated operator, or guest has violated any federal, state, or cit y law, or regulation pertaining to the use of the property as a short-term rental facility; (3) The chief of the police department or the chief of the fire department has determined that the short-term rental facility would pose a serious threat to public health, safety, or welfare; or (4) The applicant has made a false statement of material fact on an application for a short-term rental facility license. Sec. 8-88. Notice to applicant/license; appeals. (a) Upon denial, suspension or revocation, the City Manager or designee shall notify the applicant or licensee in writing either in person or by certified mail to the address listed on the application of the action taken and the reasons therefore. A person may appeal a decision to deny, revoke, or suspend a license to the city council. Appeals shall be submitted to the city secretary in writing within fifteen (15) days following the date the applicant or licensee receives the decision. A hearing on the denial, suspension, or revocation will be scheduled for the next regular meeting of the city council that is more than six (6) days away. The council will render a decision on the appeal within ten (10) days of the hearing. A licensee shall not operate the short-term rental facility during the appeal process. (b) At the appeal hearing on a denial of an initial license application, the appealing party must present evidence clearly indicating that the City Manager or designee was incorrect in determining that the stated grounds for the license denial existed. (c) At the appeal hearing on a license suspension, revocation, or refusal to renew, the City Manager or designee must present evidence clearly indicating that the stated grounds for such action existed. Sec. 8-89. - Reserved.” SECTION 4. If any section, article paragraph, sentence, clause, phrase or word in this Ordinance, or application thereto any persons or circumstances is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance; and the City Council hereby declares it would have passed such remaining portions of this Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 5. That all provisions of the Ordinances of the City of The Colony, Texas, in conflict with the provisions of this Ordinance be, and the same are hereby amended, repealed, and 168 all other provisions of the Ordinances of the City not in conflict with the provisions of this Ordinance shall remain in full force and effect. SECTION 6. Any person, firm, or corporation violating any of the provisions of this Ordinance shall be deemed guilty of a misdemeanor and, upon conviction in the municipal court of the City of The Colony, Texas, shall be punished by a fine not to exceed the sum of Two Thousand Dollars ($2,000.00) for each offense. Every day a violation occurs shall constitute a separate offense. SECTION 7. This Ordinance shall become effective immediately upon its passage and publication as required by law. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS 16th day of AUGUST, 2022. Richard Boyer, Mayor City of The Colony, Texas ATTEST: Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: Jeffrey L. Moore, City Attorney 169 Agenda Item No:5.5 CITY COUNCIL Agenda Item Report Meeting Date: August 16, 2022 Submitted by: David Coulon Submitting Department: Police Item Type: Ordinance Agenda Section: Subject: Discuss and consider an ordinance amendment to Chapter 13 of the Code of Ordinances, entitled "Offenses and Miscellaneous Provisions" by adding a new Article XIV, Sections 13-175 to 13-176 entitled "Possession of Catalytic Converters" to address the possession of used Catalytic Converters. (Coulon) Suggested Action: Attachments: Ord. 2022-xxxx Catalytic Converter Possession.pdf 170 1 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2022 - ________ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY TEXAS, AMENDING CHAPTER 13 OF THE CODE OF ORDINANCES, ENTITLED “OFFENSES AND MISCELLANEOUS PROVISIONS” BY ADDING A NEW ARTICLE XIV, SECTIONS 13-175 TO 13-176 ENTITLED “POSSESSION OF CATALYTIC CONVERTERS”; BY PROHIBITING THE POSSESSION OF USED CATALYTIC CONVERTERS AND PROVIDING FOR EXCEPTIONS TO THE SAME; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING A PENALTY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of The Colony, Texas (“City Council”) finds and determines that it would be advantageous and beneficial to the citizens of the City of The Colony, Texas, to amend Chapter 13 of The Colony Code of Ordinances, as set forth herein; and WHEREAS, due to the precious metals of rhodium, palladium, and platinum contained in catalytic converters, the National Insurance Crime Bureau has reported that the claims of catalytic converters thefts rose nationally from 3,389 in 2019 to 14,433 in 2020; and WHEREAS, the City of The Colony, Texas, had a total of 64 catalytic converters thefts in 2021, and as of August 1, 2022, have already had 47 reported stolen; and WHEREAS, on September 1, 2021, Texas H.B. 4110 was enacted to address this issue, however; the bill only addressed those trying to sell or purchase catalytic converters; and WHEREAS, City Staff recommends adopting an Ordinance focused on the possession of cut or un-bolted catalytic converters, which are common methods to remove the catalytic converters during the theft. NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. The findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. SECTION 2. Amendment of Chapter 13 of the Code of Ordinances. That the Code of Ordinances of the City of The Colony, Texas, is hereby amended by amending Chapter 13, by adding a new Article XIV, Sections 13-175 to 13-176, entitled “Possession of Catalytic Converters,” which shall read as follows: “Article XIV. Possession of Catalytic Converters Sec. 13-175. Definitions. 171 2 In this article: Catalytic converter means an exhaust emission control device that reduces toxic gases and pollutants from internal combustion; this includes any material removed from a catalytic converter. Metal Recycling Entities means a business that is operated from a fixed location and is predominantly engaged in the practice as defined in the Occupations Code Title 12, Chapter 1956. Sec. 13-176. Possession of catalytic converter (a) It shall be unlawful for any person or entity other than a metal recycler to possess a used catalytic converter that was removed from a motor vehicle unless the individual or entity can: (1) provide proof of ownership of the motor vehicle from which the converter was removed, and can reasonably link the catalytic converter to the vehicle; or (2) The person presents proof that the possession of the catalytic converter lawfully passed from the owner of the vehicle from which the converter was removed to the person in possession of the converter.” SECTION 3. If any section, article paragraph, sentence, clause, phrase or word in this Ordinance, or application thereto any persons or circumstances is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance; and the City Council hereby declares it would have passed such remaining portions of this Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 4. That all provisions of the Ordinances of the City of The Colony, Texas, in conflict with the provisions of this Ordinance be, and the same are hereby amended, repealed, and all other provisions of the Ordinances of the City not in conflict with the provisions of this Ordinance shall remain in full force and effect. SECTION 5. Any person, firm, or corporation violating any of the provisions of this Ordinance shall be deemed guilty of a misdemeanor and, upon conviction in the municipal court of the City of The Colony, Texas, shall be punished by a fine not to exceed the sum of Five Hundred Dollars ($500.00) for each offense. Every day a violation occurs shall constitute a separate offense. SECTION 6. This Ordinance shall become effective immediately upon its passage and publication as required by law. 172 3 PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS 16th DAY OF AUGUST 2022. Richard Boyer, Mayor City of The Colony, Texas ATTEST: Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: Jeffrey L. Moore, City Attorney 173 Agenda Item No:5.6 CITY COUNCIL Agenda Item Report Meeting Date: August 16, 2022 Submitted by: Tina Stewart Submitting Department: City Secretary Item Type: Presentation Agenda Section: Subject: Discuss and consider a resolution disapproving the proposed 2023 budget from the Denton Central Appraisal District. (Council) Suggested Action: Attachments: 2023 Proposed Budget Powerpoint from Denton Central Appraisal District Res. Disapproving the Denton County CAD 2023 Budget.pdf 174 175 176 177 178 179 180 181 182 183 184 185 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2022 - _________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, DISAPPROVING OF THE DENTON CENTRAL APPRAISAL DISTRICT 2023 BUDGET; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of The Colony, Texas (hereinafter referred to as the “City”), is a taxing entity within the Denton Central Appraisal District and relies on the Denton Central Appraisal District for appraising property within the boundaries of the City for ad valorem tax purposes; and WHEREAS, the Denton Central Appraisal District operations are funded solely by the local taxing entities served by the appraisal district, which includes the City; and WHEREAS, on July 28, 2022, the Denton Central Appraisal District Board of Directors voted to approve the 2023 Budget in the amount of $17,997,944.33, which is an increase of 17.45% from the current 2022 budget; and WHEREAS, pursuant to Chapter 6 of the Texas Tax Code, each taxing unit has a right to adopt a resolution disapproving of the Denton Central Appraisal District budget; and WHEREAS, Section 6.06(b) of the Texas Tax Code provides that “[i]f governing bodies of a majority of the taxing units entitled to vote on the appointment of board members adopt resolutions disapproving a budget and file them with the secretary of the board within 30 days after its adoption, the budget does not take effect, and the board shall adopt a new budget within 30 days of the disapproval.” NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THAT: SECTION 1. The City Council of the City of The Colony, Texas, pursuant to the authority contained in Section 6.06(b) of the Texas Tax Code, hereby disapproves the 2023 Budget of the Denton Central Appraisal District. SECTION 2. This Resolution shall become effective from and after its date of passage in accordance with law. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS 16TH DAY 0F AUGUST, 2022. Richard Boyer, Mayor City of The Colony, Texas 186 Page 2 ATTEST: Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: Jeffrey L. Moore, City Attorney 187 Agenda Item No:6.1 CITY COUNCIL Agenda Item Report Meeting Date: August 16, 2022 Submitted by: Tina Stewart Submitting Department: City Secretary Item Type: Discussion Agenda Section: Subject: A. Council shall convene into a closed executive session pursuant to Sections 551.072 and 551.087 of the Texas Government Code to deliberate regarding purchase, exchange, lease or value of real property and commercial or financial information the city has received from a business prospect(s), and to deliberate the offer of a financial or other incentive to a business prospect(s). B. Council shall convene into a closed executive session pursuant to Section 551.074 of the Texas Government Code to deliberate the evaluation, reassignment, duties, discipline, or dismissal of the Municipal Court Judge. Suggested Action: Attachments: 188 Agenda Item No:7.1 CITY COUNCIL Agenda Item Report Meeting Date: August 16, 2022 Submitted by: Tina Stewart Submitting Department: City Secretary Item Type: Discussion Agenda Section: Subject: A. Any action as a result of executive session regarding purchase, exchange, lease or value of real property and commercial or financial information the city has received from a business prospect(s), and the offer of a financial or other incentive to a business prospect(s). B. Any action as a result of executive session regarding the evaluation, reassignment, duties, discipline, or dismissal of the Municipal Court Judge. Suggested Action: Attachments: 189