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HomeMy WebLinkAboutCity Packets - City Council - 09/03/2024 - RegularAgenda Item No:1.5 CITY COUNCIL Agenda Item Report Meeting Date: September 3, 2024 Submitted by: Tina Stewart Submitting Department: City Secretary Item Type: Proclamation Agenda Section: Subject: Proclamation recognizing September 2024 as United Way of Denton County - LIVE UNITED Month. (Mayor) Suggested Action: Attachments: 2024 United Way of Denton County Proclamation.doc 5 MAYORAL PROCLAMATION WHEREAS,United Way of Denton County mobilizes communities like the City of The Colony to action so all can thrive; and WHEREAS,by working together with donors, supporters, and collaborators across Denton County, United Way of Denton County creates opportunities to expand education, promote economic mobility, improve health & mental health, and provide basic needs for over 53,000 County residents annually. WHEREAS,United Way of Denton County leads the effort with a network of nonprofits, governments, businesses, and donors to respond to our neighbor’s immediate needs and seek out better solutions for larger community-wide issues. NOW, THEREFORE,I, Richard Boyer, Mayor of the City of The Colony, do hereby proclaim September 2024 LIVE UNITED Month and proudly join United Way of Denton County in calling on all residents of The Colony to Give to One to Impact Many as we take action to LIVE UNITED for a better Denton County for all of us. SIGNED AND SEALED this 3rd day of September 2024. __________________________________ Richard Boyer, Mayor City of The Colony, Texas __________________________________ Tina Stewart, TRMC, CMC, City Secretary 6 Agenda Item No:1.6 CITY COUNCIL Agenda Item Report Meeting Date: September 3, 2024 Submitted by: Kimberly Thompson Submitting Department: City Secretary Item Type: Miscellaneous Agenda Section: Subject: Items of Community Interest Suggested Action: Attachments: 7 Agenda Item No:1.7 CITY COUNCIL Agenda Item Report Meeting Date: September 3, 2024 Submitted by: Lindsey Stansell Submitting Department: Parks & Recreation Item Type: Announcement Agenda Section: Subject: Receive presentation from Parks and Recreation regarding upcoming events and activities. (Stansell) Suggested Action: Attachments: 8 Agenda Item No:3.1 CITY COUNCIL Agenda Item Report Meeting Date: September 3, 2024 Submitted by: Jay Goodson Submitting Department: Police Item Type: Presentation Agenda Section: Subject: Receive a presentation and update from the Children's Advocacy Center. (Goodson) Suggested Action: Attachments: 9 Agenda Item No:3.2 CITY COUNCIL Agenda Item Report Meeting Date: September 3, 2024 Submitted by: Brant Shallenburger Submitting Department: General Admin Item Type: Discussion Agenda Section: Subject: Receive updates regarding Oncor service and maintenance plan. (Mayor) Suggested Action: Attachments: 10 Agenda Item No:3.3 CITY COUNCIL Agenda Item Report Meeting Date: September 3, 2024 Submitted by: Kimberly Thompson Submitting Department: City Secretary Item Type: Discussion Agenda Section: Subject: Council to provide direction to staff regarding future agenda items. (Council) Suggested Action: Attachments: 11 Agenda Item No:4.1 CITY COUNCIL Agenda Item Report Meeting Date: September 3, 2024 Submitted by: Kimberly Thompson Submitting Department: City Secretary Item Type: Minutes Agenda Section: Subject: Consider approving City Council Regular Session meeting minutes from August 20, 2024. (Stewart) Suggested Action: Attachments: August 20, 2024 DRAFT Minutes.docx 12 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 20, 2024 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 20 th day of August 2024, at City Hall, 6800 Main Street, The Colony, Texas, with the following roll call: Richard Boyer, Mayor Judy Ensweiler, Deputy Mayor Pro Tem Robyn Holtz, Councilmember Brian Wade, Councilmember Dan Rainey, Councilmember Perry Schrag, Mayor Pro Tem Joel Marks, Councilmember Present Present Present Absent (Personal) Present Present Present And with 6 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 with 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 the Library regarding upcoming events and activities. Library Director, Megan Charters, provided upcoming events and activities to the Council. 2.0 CITIZEN INPUT Jennifer Hall, 5201 S. Colony Blvd, reported on the services provided through the NTX Community Food Pantry and the need for additional funding. 13 City Council – Regular Meeting Agenda August 20, 2024 Page| 2 3.0 WORK SESSION 3.1 Receive a presentation and update from Love Pacs. Representatives, Christina Wade and Michelle Doss provided an update and requested additional funding. 3.2 Receive a presentation and update from The Colony Chamber of Commerce. Executive Director, Kelly D’Andrea, provided an update and requested additional funding. 3.3 Receive a presentation and update from Next Steps. Representatives Pamela De Santiago and Jason Kelley provided an update and requested additional funding. 3.4 Receive a presentation and update from CASA of Denton County. Representative, Pattie Huestis, provided an update on this item. 3.5 Council to provide direction to staff regarding future agenda items. Mayor stated that he’ll give an update on Oncor’s service and maintenance plans to address the numerous power outages at the next meeting. Councilmember Ensweiler thanked Assistant City Manager, Tim Miller, for addressing her request with regards to streets, roads and alleys. 4.0 CONSENT AGENDA Motion to approve all items from the Consent Agenda- Ensweiler; second by Schrag, motion carried with all ayes. 4.1 Consider approving City Council Regular meeting minutes from August 6, 2024. 4.2 Consider approving a resolution authorizing the City Manager to execute a Municipal Building #5 Lease Agreement with Lakeside Community Theater for the Fiscal Year 2024-25. RESOLUTION NO. 2024-060 4.3 Consider approving a resolution authorizing the City Manager to execute a Lease Agreement with The Colony Chamber of Commerce for a space in the former Stewart Creek Elementary School Building for the Fiscal Year 2024-25. RESOLUTION NO. 2024-061 14 City Council – Regular Meeting Agenda August 20, 2024 Page| 3 4.4 Consider approving a resolution authorizing the City Manager to execute a Government Center Lease Agreement with American Legion Holley-Riddle Post 21 for the Fiscal Year 2024-25. RESOLUTION NO. 2024-062 4.5 Consider approving an ordinance authorizing the Mayor to execute a Negotiated Settlement Agreement between Atmos Cities Steering Committee and Atmos Energy Corporation, MID-TEX Division regarding the company's 2024 Rate Review Mechanism Filing. ORDINANCE NO. 2024- 2570 5.0 REGULAR AGENDA ITEMS 5.1 Discuss and consider approving a resolution authorizing the City Manager to execute a Professional Services Agreement Contract with Huitt-Zollars for programming and schematic design services for the New Recreation Center Building Project (Phase 4) in an amount not to exceed $415,800.00 with funding from the Community Development Corporation. Parks Development Manager, Calvin Lehmann, gave an overview of the item. Motion to approve –Ensweiler; second by Holtz, motion carried with all ayes. RESOLUTION NO. 2024-063 5.2 Discuss and consider the City of The Colony Proposed Municipal Budget 2024- 2025. Assistant City Manager, Tim Miller, presented the proposed budget to Council. 5.3 Discuss and consider the proposed 2025 tax rate of $.6400 per $100 of property valuation and setting the date for public hearings on the budget, tax rate, and Grandscape PID assessment on September 3, 2024. In addition, approval of the 2024-2025 fee schedule, tax rate, budget, and PID assessment on September 17, 2024. Assistant City Manager, Tim Miller, provided an overview of this item. Council provided discussion on it. Motion to approve – Marks; second by Ensweiler, motion carried with all ayes. 15 City Council – Regular Meeting Agenda August 20, 2024 Page| 4 Executive Session was convened at 7:51 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). 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. Regular Session was reconvened at 8:46 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 B. Any action as a result of executive session regarding the evaluation, reassignment, duties, discipline, or dismissal of the Municipal Court Judge. Motion to amend the Municipal Court Judge’s contract terms as discussed in executive session Ensweiler; second by Marks, motion carried with all ayes. ADJOURNMENT With there being no further business to discuss, the meeting adjourned at 8:47 p.m. APPROVED: __________________________________ Richard Boyer, Mayor City of The Colony, Texas ATTEST: _____________________________________ Tina Stewart, TRMC, CMC, City Secretary 16 City Council – Regular Meeting Agenda August 20, 2024 Page| 5 17 Agenda Item No:4.2 CITY COUNCIL Agenda Item Report Meeting Date: September 3, 2024 Submitted by: Tina Stewart Submitting Department: City Secretary Item Type: Resolution Agenda Section: Subject: Consider approving a resolution authorizing the Mayor to execute a Joint Election Agreement and Contract for election services with Denton County Elections for the November 5, 2024 General Election. (Council) Suggested Action: Attachments: DRAFT Contract for Election Services.pdf The Colony Signature Page for Denton County Joint Contract.docx Res. 2024-xxx Denton County Joint Election Agreement.doc 18 THE STATE OF TEXAS COUNTY OF DENTON JOINT ELECTION AGREEMENT AND CONTRACT FOR ELECTION SERVICES This CONTRACT for election services is made by and between the Denton County Elections Administrator and the following political subdivisions, herein referred to as “participating authority or participating authorities” located entirely or partially inside the boundaries of Denton County: Participating Authorities: This contract is made pursuant to Texas Election Code Sections 31.092 and 271.002 and Texas Education Code Section 11.0581 for a joint November 5, 2024 election to be administered by Frank Phillips, Denton County Elections Administrator, hereinafter referred to as “Elections Administrator.” RECITALS Each participating authority listed above plans to hold a General or Special Election on November 5, 2024. Denton County plans to hold county-wide voting for this General Election. The County owns the Hart InterCivic Verity Voting System, which has been duly approved by the Secretary of State pursuant to Texas Election Code Chapter 122 as amended, and is compliant with the accessibility requirements for persons with disabilities set forth by Texas Election Code Section 61.012. The contracting political subdivisions (participating authorities) desire to use the County’s voting system and to compensate the County for such use and to share in certain other expenses connected with joint elections, in accordance with the applicable provisions of Chapters 31 and 271 of the Texas Election Code, as amended. NOW THEREFORE, in consideration of the mutual covenants, agreements, and benefits to all parties, IT IS AGREED as follows: I. ADMINISTRATION The participating authorities agree to hold a “Joint Election” with Denton County and each other in accordance with Chapter 271 of the Texas Election Code and this agreement. The Elections Administrator shall coordinate, supervise, and handle all aspects of administering the Joint Election as provided in this agreement. Each participating authority agrees to pay the Elections Administrator for equipment, supplies, services, and administrative costs as provided in this agreement. The Elections Administrator shall serve as the administrator for the Joint Election; however, each participating authority shall remain responsible for the decisions and actions of its officers necessary for the lawful conduct of its election. The Elections Administrator shall provide advisory services in connection with decisions to be made and actions to be taken by the officers of each participating authority as necessary. 19 It is understood that other political subdivisions may wish to participate in the use of the County’s Verity voting system and polling places, and it is agreed that the Elections Administrator may enter into other contracts for election services for those purposes, on terms and conditions generally similar to those set forth in this contract. In such cases, costs shall be pro-rated among the participants according to Section XI of this contract. II. LEGAL DOCUMENTS Each participating authority shall be responsible for the preparation, adoption, and publication of all required election orders, resolutions, notices, and any other pertinent documents required by the Texas Election Code and/or the participating authority’s governing body, charter, or ordinances, except that the Elections Administrator shall be responsible for the preparation and publication of all voting equipment testing notices that are required by the Texas Election Code. Election orders should include language that would not necessitate amending the order if any of the Early Voting and/or Election Day polling places change. Preparation of the necessary materials for notices and the official ballot shall be the responsibility of each participating authority, including translation to languages other than English. Each participating authority shall provide a copy of their respective election orders and notices to the Elections Administrator. III. VOTING LOCATIONS The Elections Administrator shall select and arrange for the use of and payment for all Early Voting and Election Day voting locations. Voting locations will be, whenever possible, the usual voting location for each election precinct in elections conducted by each participating authority and shall be compliant with the accessibility requirements established by Election Code Section 43.034 and the Americans with Disabilities Act (ADA). The proposed voting locations are listed in Exhibit A of this agreement. In the event a voting location is not available or appropriate, the Elections Administrator will arrange for use of an alternate location. The Elections Administrator shall notify the participating authorities of any changes from the locations listed in Exhibit A. IV. ELECTION JUDGES, CLERKS, AND OTHER ELECTION PERSONNEL Denton County shall be responsible for the appointment of the presiding judge and alternate judge for each polling location. The Elections Administrator shall make emergency appointments of election officials if necessary. Upon request by the Elections Administrator, each participating authority agrees to assist in recruiting bilingual polling place officials (fluent in both English and Spanish). In compliance with the Federal Voting Rights Act of 1965, as amended, each polling place containing more than 5% Hispanic population as determined by the 2020 Census shall have one or more election officials who are fluent in both the English and Spanish languages. If a presiding judge is not bilingual, and is unable to appoint a bilingual clerk, the Elections Administrator may recommend a bilingual worker for the polling place. If the Elections Administrator is unable to recommend or recruit a bilingual worker, the participating authority or authorities served by that polling 20 place shall be responsible for recruiting a bilingual worker for translation services at that polling place. The Elections Administrator shall notify all election judges of the eligibility requirements of Subchapter C of Chapter 32 of the Texas Election Code, and will take the necessary steps to insure that all election judges appointed for the Joint Election are eligible to serve. The Elections Administrator shall arrange for the training and compensation of all election judges and clerks. The Election judges and clerks who attend in-person voting equipment training and/or procedures training, shall be compensated at a flat rate of $78. Election judges and clerks that elect to complete online training shall be compensated at a rate of a flat $50. In the event that an Election judge or clerk completes both in-person and online training, they shall be compensated for the training resulting in the highest pay and will not be compensated for both trainings. The Elections Administrator shall arrange for the date, time, and place for presiding election judges to pick up their election supplies. Each presiding election judge will be sent a letter from the Elections Administrator notifying them of their appointment, the dates/times and locations of training and distribution of election supplies, and the number of election clerks that the presiding judge may appoint. Each election judge and clerk will receive compensation at the hourly rate established by Denton County pursuant to Texas Election Code Section 32.091 and overtime after 40 hours worked per week, if applicable. The election judge, or their designee, will receive an additional sum of $25.00 for picking up the election supplies and equipment prior to Election Day and for returning the supplies and equipment to the central counting station after the polls close. Likewise, the Presiding Judge in Early Voting, or their designee, will receive an additional sum of $25.00 for picking up the election supplies prior to the first day of Early Voting and for returning the supplies and equipment to the Elections Department after Early Voting has ended. The compensation rates established by Denton County are: Early Voting – Presiding Judge ($19.56/hour), Alternate Judge ($18.25/ hour), Clerk ($16.95/ hour) Election Day – Presiding Judge ($19.56/hour), Alternate Judge ($18.25/ hour), Clerk ($16.95/ hour) The Elections Administrator may employ other personnel necessary for the proper administration of the election, as well as, pre and post-election administration. In such cases, costs shall be pro- rated among participants of this contract. Personnel working in support of full-time staff will be expensed on a pro-rated basis and include a time period of one week prior to the election, during the election, and one week post-election. Personnel working in support of the Early Voting Ballot Board and/or central counting station on election night will be compensated at the hourly rate set by Denton County in accordance with Election Code Sections 87.005, 127.004, and 127.006. 21 If elections staff is required outside of the hours of the office’s normal scope of business, the entity(ies) responsible for the hours will be billed for those hours. The Elections Administrator will determine when those hours are necessary, the number of staff and whom are necessary, along with to whom the hours are to be billed. Cost for these hours will be billed at a rate of 1.5 times the staff's hourly rate (See Sections XV #9). The Election Administrator has the right to waive these costs as they see fit. V. PREPARATION OF SUPPLIES AND VOTING EQUIPMENT The Elections Administrator shall arrange for delivery of all election supplies and voting equipment including, but not limited to, the County’s Verity voting system and equipment, official ballot paper, sample ballots, voter registration lists, and all forms, signs, maps and other materials used by the election judges at the voting locations. The Elections Administrator shall ensure availability of tables and chairs at each polling place and shall procure rented tables and chairs for those polling places that do not have tables and/or chairs. Any additional required materials (required by the Texas Election Code) must be provided by the participating authority, and delivered to the Elections Office thirty-three (33) calendar days (October 3, 2024) prior to Election Day. If this deadline is not met, the material must be delivered by the participating authority, to all Early Voting and Election Day locations affected, prior to voting commencing. The Elections Administrator shall be responsible for conducting all required testing of the voting equipment, as required by Chapters 127 and 129 of the Texas Election Code. At each polling location, joint participants shall share voting equipment and supplies to the extent possible. The participating authorities shall share a mutual ballot in those precincts where jurisdictions overlap. Multiple ballot styles shall be available in those shared polling places where jurisdictions do not overlap. The Elections Administrator shall provide the necessary voter registration information, maps, instructions, and other information needed to enable the election judges in the voting locations that have more than one ballot style to conduct a proper election. Each participating authority shall furnish the Elections Administrator a list of candidates and/or propositions showing the order and the exact manner in which the candidate names and/or proposition(s) are to appear on the official ballot (including titles and text in each language in which the authority’s ballot is to be printed). Said list must be provided to the Elections Office within three (3) business days following the last day to file for a place on the ballot or after the election is ordered, whichever is later. The list of candidates and/or propositions must be completed on the ballot language form provided by the Elections Administrator, the information will preferably be in sentence case format, and must contain candidate contact information for the purposes of verifying the pronunciation of each candidate’s name. Each participating authority shall be responsible for proofreading and approving the ballot insofar as it pertains to that authority’s candidates and/or propositions. Each participating authority shall be responsible for proofing and approving the audio recording of the ballot insofar as it pertains to that authority’s candidates and/or propositions. The approval must be finalized with the Elections Office within five (5) calendar days of the receipt of the proofs, or the provided proofs shall be considered approved. 22 The joint election ballots shall list the County’s election first. The joint election ballots that contain ballot content for more than one joint participant because of overlapping territory shall be arranged with the Central Appraisal District, then the appropriate school district ballot content appearing on the ballot, followed by the appropriate city ballot content, and followed by the appropriate water district or special district ballot content. Early Voting by personal appearance and on Election Day shall be conducted exclusively on Denton County’s Verity voting system including provisional ballots. The Elections Administrator shall be responsible for the preparation, testing, and delivery of the voting equipment for the election as required by the Election Code. The Elections Administrator shall conduct criminal background checks on the relevant employees upon hiring as required by Election Code 129.051(g). VI. EARLY VOTING The participating authorities agree to conduct joint early voting and to appoint the Election Administrator as the Early Voting Clerk in accordance with Sections 31.097 and 271.006 of the Texas Election Code. Each participating authority agrees to appoint the Elections Administrator’s permanent county employees as deputy early voting clerks. The participating authorities further agree that the Elections Administrator may appoint other deputy early voting clerks to assist in the conduct of early voting as necessary, and that these additional deputy early voting clerks shall be compensated at an hourly rate set by Denton County pursuant to Section 83.052 of the Texas Election Code. Deputy early voting clerks who are permanent employees of the Denton County Elections Administrator or any participating authorities shall serve in that capacity without additional compensation. Exhibit A of this document includes locations, dates, and times that voting will be held for Early Voting by personal appearance. Any qualified voter of the Joint Election may vote early by personal appearance at any one of the joint early voting locations. All requests for temporary branch polling places will be considered and determined based on the availability of the facility and if it is within the Election Code parameters. All costs for temporary locations including coverage by Election Administration staff will be borne by the requesting authority. The Elections Administrator will determine when those hours are necessary, the number of staff and who are necessary, along with to whom the hours are to be billed. Cost for these hours will be billed at a rate of 1.5 times the staff’s hourly rate (See Sections XV #10). The Election Administrator has the right to waive these costs as they see fit. The standard dates and hours for the November 5, 2024 election will be as follows: Monday, October 21, 2024 through Saturday, October 26, 2024; 7am – 7pm Sunday, October 27, 2024; 11am-5pm Monday, October 28, 2024 through Friday, November 1, 2024; 7am-7pm 23 As Early Voting Clerk, the Elections Administrator shall receive applications for early voting ballots to be voted by mail in accordance with Chapters 31 and 86 of the Texas Election Code. Any requests for early voting ballots to be voted by mail received by the participating authorities shall be forwarded immediately by fax or courier to the Elections Administrator for processing. The address of the Early Voting Clerk is as follows: Frank Phillips, Early Voting Clerk Denton County Elections PO Box 1720 Denton, TX 76202 Email: elections@dentoncounty.gov Any requests for early voting ballots to be voted by mail, and the subsequent actual voted ballots that are sent by a contract carrier (ie. UPS, FedEx, etc.) shall be delivered to the Early Voting Clerk at the Denton County Elections Department physical address as follows: Frank Phillips, Early Voting Clerk Denton County Elections 701 Kimberly Drive, Suite A100 Denton, TX 76208 Email: elections@dentoncounty.gov The Elections Administrator shall post on the county website, the participating authority’s Early Voting Roster on a daily basis. In accordance with Section 87.121 of the Election Code, the daily roster showing the previous day’s early voting activity will be posted no later than 11:00 am each business day. VII. EARLY VOTING BALLOT BOARD Denton County shall appoint the Presiding Judge of an Early Voting Ballot Board (EVBB) to process early voting results from the Joint Election. The Presiding Judge, with the assistance of the Elections Administrator, shall appoint an Alternate Judge and one or more additional members to constitute the EVBB. The Elections Administrator shall determine the number of EVBB members required to efficiently process the early voting ballots. VIII. CENTRAL COUNTING STATION AND ELECTION RETURNS The Elections Administrator shall be responsible for establishing and operating the central counting station to receive and tabulate the voted ballots in accordance with the provisions of the Texas Election Code and of this agreement. The participating authorities hereby, in accordance with Section 127.002, 127.003, and 127.005 of the Texas Election Code, appoint the following central counting station officials: Counting Station Manager: Brandy Grimes, Deputy Elections Administrator Tabulation Supervisor: Jason Slonaker, Technology Resources Coordinator 24 Presiding Judge: Early Voting Ballot Board Judge Alternate Judge: Early Voting Ballot Board Alternate Judge The counting station manager or their representative shall deliver timely cumulative reports of the election results as precincts report to the central counting station and are tabulated by posting on the Election Administrator's Election Night Results website. The manager shall be responsible for releasing unofficial cumulative totals and precinct returns from the election to the joint participants, candidates, press, and members of the general public by distribution of hard copies at the central counting station (if requested) and by posting to the Election Administrator's Election Night Results website. To ensure the accuracy of reported election returns, results printed on the reports produced by Denton County’s voting equipment will not be released to the participating authorities at the remote collection locations or from individual polling locations. The Elections Administrator will prepare the unofficial canvass reports after all precincts have been counted and will deliver a copy of the unofficial canvass to each participating authority as soon as possible after all returns have been tabulated. The Elections Administrator will include the tabulation and precinct-by-precinct results that are required by Texas Election Code Section 67.004 for the participating authorities to conduct their respective canvasses. Each participating authority shall be responsible for the official canvass of its respective election(s), and shall notify the Elections Administrator, or their designee, of the date of the canvass, no later than three days after Election Day. The Elections Administrator shall be responsible for conducting the post-election manual recount required by Section 127.201 of the Texas Election Code unless a waiver is granted by the Secretary of State. Notification and copies of the recount, if waiver is denied, will be provided to each participating authority and the Secretary of State’s Office. IX. PARTICIPATING AUTHORITIES WITH TERRITORY OUTSIDE DENTON COUNTY Each participating authority with territory containing population outside of Denton County agrees that the Elections Administrator shall administer only the Denton County portion of those elections. On a case-by-case basis, the Elections Administrator may consider administering an entities election for portions outside of Denton County. X. RUNOFF ELECTIONS Each participating authority shall have the option of extending the terms of this agreement through its runoff election, if applicable. In the event of such runoff election, the terms of this agreement shall automatically extend unless the participating authority notifies the Elections Administrator in writing within three (3) business days of the original election. Each participating authority shall reserve the right to reduce the number of early voting locations and/or Election Day voting locations in a runoff election. 25 Each participating authority eligible to hold runoff elections agrees that the date of the runoff election, if necessary, shall be determined by the Secretary of State, with early voting being held in accordance with the Election Code. XI. ELECTION EXPENSES AND ALLOCATION OF COSTS The participating authorities agree to share the costs of administering the Joint Election. Allocation of general expenses, which are not directly attributable to an individual polling location, will be expensed by each participating authority’s percentage of registered voters of the total registered voters of all participating authorities. Expenses for Early Voting by personal appearance shall be allocated based upon the actual costs associated with each early voting location. Each participating authority shall be responsible for an equal portion of the actual costs associated with the early voting locations within their jurisdiction. Participating authorities that do not have a polling location within their jurisdiction shall pay an equal portion of the nearest polling location. If an entity requests an Early Voting location outside of their jurisdiction and the request is granted, the participating authority shall be responsible for an equal portion of the actual cost associated with the early voting location requested. Election Day location expenses will be allocated based on each participating authority’s percentage of registered voters assigned to each polling place. In the event that participating authorities with overlapping boundaries cannot make an agreement on Early Voting and/or Election Day locations, the requesting participating authority agrees to bear the entire expense of the location. Final determination of Early Voting and/or Election Day locations will be confirmed by the Elections Administrator. Each participating authority requesting additional hours, outside of the standard hours, for a location or locations, agree to split the cost of the additional open hours equally amongst the requesting participating authorities. Costs for Early Voting by mail, in-person ballots, ballots, provisional ballots, and Poll Pad paper shall be allocated according to the actual number of ballots issued to each participating authority’s voters and the cost shared equally amongst participating authorities of each ballot style. Each participating authority agrees to pay the Elections Administrator an administrative fee equal to ten percent (10%) of its total billable costs in accordance with Section 31.100(d) of the Texas Election Code. The Elections Administrator shall deposit all funds payable under this contract into the appropriate fund(s) within the county treasury in accordance with Election Code Section 31.100. 26 The Elections Administrator reserves the right to adjust the above formulas in agreement with an individual jurisdiction if the above formula results in a cost allocation that is inequitable. If any participating authority makes a special request for extra Temporary Branch Early Voting by Personal Appearance locations as provided by the Texas Election Code, that entity agrees to pay the entire cost for that request. Participating authorities having the majority of their voters in another county, and/or fewer than 500 registered voters in Denton County, and that do not have an Election Day polling place or early voting location within their Denton County territory shall pay a flat fee of $750 for election expenses. Election expenses, including but not limited to, overtime charges for Election Office staff, and any unforeseen expenses needed to conduct the election, will be borne by the participating authority or authorities, affected. The fee for programming each participating authority’s election will be based on the number of races within their election. The fee schedule is as follows: Programming Fees # of Races DCEA fee 1-5 $750.00 6-10 $1,265.00 11-20 $1,650.00 21-40 $2,090.00 41-75 $2,640.00 76-100 $3,135.00 XII. WITHDRAWAL FROM CONTRACT DUE TO CANCELLATION OF ELECTION Any participating authority may withdraw from this agreement and the Joint Election should it cancel its election in accordance with Sections 2.051 - 2.053 of the Texas Election Code. The withdrawing authority is fully liable for any expenses incurred by the Denton County Elections Administrator on behalf of the authority plus an administrative fee of ten percent (10%) of such expenses. Any monies deposited with the Elections Administrator by the withdrawing authority shall be refunded, minus the aforementioned expenses and administrative fees, if applicable. It is agreed that any of the joint election early voting locations that are not within the boundaries of one or more of the remaining participating authorities, with the exception of the early voting location at the Denton County Elections Building, may be dropped from the joint election unless one or more of the remaining participating authorities agreed to fully fund such location(s). In the event that any early voting location is eliminated under this section, as addendum to the contract shall be provided to the remaining participants within five days after notification of all intents to withdraw have been received by the Elections Administrator. XIII. RECORDS OF THE ELECTION 27 The Elections Administrator is hereby appointed general custodian of the voted ballots and all records of the Joint Election as authorized by Section 271.010 of the Texas Election Code. Access to the election records shall be available to each participating authority as well as to the public in accordance with applicable provisions of the Texas Election Code and the Texas Public Information Act. The election records shall be stored at the offices of the Elections Administrator or at an alternate facility used for storage of county records. The Elections Administrator shall ensure that the records are maintained in an orderly manner so that the records are clearly identifiable and retrievable. Records of the election shall be retained and disposed of in accordance with the provisions of Section 66.058 of the Texas Election Code. If records of the election are involved in any pending election contest, investigation, litigation, or open records request, the Elections Administrator shall maintain the records until final resolution or until final judgment, whichever is applicable. It is the responsibility of each participating authority to bring to the attention of the Elections Administrator any notice of pending election contest, investigation, litigation or open records request which may be filed with the appropriate participating authority. XIV. RECOUNTS A recount may be obtained as provided by Title 13 of the Texas Election Code. By signing this document, the presiding officer of the contracting participating authorities agree that any recount shall take place at the office of the Elections Administrator, and that the Elections Administrator shall serve as Recount Supervisor, and the participating authority’s official or employee who performs the duties of a secretary under the Texas Election Code shall serve as Recount Coordinator. The Elections Administrator agrees to provide advisory services to each participating authority as necessary to conduct a proper recount. XV. MISCELLANEOUS PROVISIONS 1. It is understood that to the extent space is available, other districts and political subdivisions may wish to participate in the use of the County’s election equipment and voting places, and it is agreed that the Elections Administrator may contract with such other districts or political subdivisions for such purposes and that in such event there may be an adjustment of the pro-rata share to be paid to the County by the participating authorities. 2. The Elections Administrator shall file copies of this document with the Denton County Treasurer and the Denton County Auditor in accordance with Section 31.099 of the Texas Election Code. 3. Nothing in this contract prevents any party from taking appropriate legal action against any other party and/or other election personnel for a breach of this contract or a violation of the Texas Election Code. 28 4. This agreement shall be construed under and in accord with the laws of the State of Texas, and all obligations of the parties created hereunder are performable in Denton County, Texas. 5. In the event that one of more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision hereof and this agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. 6. All parties shall comply with all applicable laws, ordinances, and codes of the State of Texas, all local governments, and any other entities with local jurisdiction. 7. The waiver by any party of a breach of any provision of this agreement shall not operate as or be construed as a waiver of any subsequent breach. 8. Any amendments of this agreement shall be of no effect unless in writing and signed by all parties hereto. 9. Failure for a participating authority to meet the deadlines as outline in this contract may result in additional charges, including but not limited to, overtime charges, etc. Elections Staffing Hourly Rate (includes all benefit pay): Absentee Voting Coordinator $46.798 Voter Registration Clerk $34.157 - $37.309 Technology Resources Coordinator $48.225 Elections Technician $31.655 - $38.186 Voter Registration Coordinator $41.415 Training Coordinator $47.168 Election Coordinator $38.718 XVI. COST ESTIMATES AND DEPOSIT OF FUNDS The total estimated obligation for each participating authority under the terms of this agreement is listed below. The exact amount of each participating authority’s obligation under the terms of this agreement shall be calculated after the November 5, 2024 election (or runoff election, if applicable). The participating authority’s obligation shall be paid to Denton County within 30 days after the receipt of the final invoice from the Denton County Elections Administrator. The total estimated obligation for each participating authority under the terms of this agreement shall be provided within 45 days after the last deadline for ordering an election: 29 Entity Estimate v.1124 THIS PAGE INTENTIONALLY BLANK. 30 XVII.JOINT CONTRACT ACCEPTANCE AND APPROVAL IN TESTIMONY HEREOF, this agreement has been executed on behalf of the parties hereto as follows, to-wit: (1) It has on the 30 th day of August, 2024 been executed by the Denton County Elections Administrator pursuant to the Texas Election Code so authorizing; (2) It has on the 3 rd day of September, 2024 been executed on behalf of the City of The Colony pursuant to an action of The Colony City Council so authorizing; ACCEPTED AND AGREED TO BY DENTON COUNTY ELECTIONS ADMINISTRATOR: APPROVED: ___________________________________________ Frank Phillips, CERA ACCEPTED AND AGREED TO BY THE CITY OF THE COLONY: APPROVED:ATTESTED: ____________________________________________________________________________________ Richard Boyer, Mayor Tina Stewart, City Secretary 31 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2024 - _______ A RESOLUTION OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE MAYOR TO EXECUTE A JOINT ELECTION AGREEMENT AND CONTRACT FOR ELECTION SERVICES BY AND BETWEEN THE CITY OF THE COLONY AND DENTON COUNTY ELECTIONS FOR THE NOVEMBER 5, 2024 GENERAL ELECTION; ATTACHING THE APPROVED FORM OF CONTRACT AS EXHIBIT A; AND 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 hereby approves the JOINT ELECTION AGREEMENT AND CONTRACT FOR ELECTION SERVICES by and between the CITY OF THE COLONY and DENTON COUNTY ELECTIONS for the NOVEMBER 5, 2024 GENERAL ELECTION. Section 2.That a true and correct copy of the Agreement is attached hereto and incorporated herein, as Exhibit A. Section 3.That the Mayor is authorized to execute the Agreement on behalf of the City. 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 THE 3RD DAY OF SEPTEBER 2024. ______________________________ Richard Boyer, Mayor City of The Colony, Texas ATTEST: ___________________________________ Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: ___________________________________ Jeffrey L. Moore, City Attorney 32 Agenda Item No:4.3 CITY COUNCIL Agenda Item Report Meeting Date: September 3, 2024 Submitted by: Jackie Kopsa Submitting Department: Parks & Recreation Item Type: Ordinance Agenda Section: Subject: Consider approving an ordinance accepting a bid and authorizing the sale of certain parkland generally located at 4526 W. Lake Highlands Drive, The Colony, Denton County, Texas, and related actions thereto. (Kopsa) Suggested Action: Attachments: 4526 W Lake Highlands Offer Comparison.pdf Ord. 2024-xxxx Accept Bid - Sale of Parkland 33 Buyer 1 Buyer 2 Agent Name Tammy Watson Hannah Fentriss Buyer Name SRH Family Trust Kauser/Rahman Offer Amount $140,000.00 $138,000.00 Adjusted Offer Amount List Price 140,000.00 140,000.00 Cash Difference 0.00 2,000.00 Down Pmt 0.00 0.00 Financing Amount 0.00 0.00 Financing Type cash cash Title Co Universal Title Universal Title Title Pd 1,135.00 1,135.00 Am Shortages Pd By Seller 0.00 0.00 Survey Paid By Seller 0.00 0.00 Objections 3 3 Warranty Paid By Seller 0.00 0.00 7D2 as is as is Closing Costs Paid By Seller 0.00 0.00 Close Date 9/19 8/22 Option Fee 0.00 250.00 Option Days 0 5 Leaseback Requested? Rent/Deposit 0.00 0.00 HOA Days 0 0 HOA Trasfer Fee Pd. By Buyer 0.00 0.00 Non-realty Items 0 NET Offer $138,865.00 $137,115.00 Lender Company Name (Debits)1,135.00 1,135.00 (Credits)140,000.00 138,250.00 Earnest Money 1,400.00$ 1,380.00$ Notes 34 Buyer 3 Buyer 4 Dania Allan Subba Boyalla Khan Tiyyagura $125,000.00 $115,000.00 140,000.00 140,000.00 15,000.00 25,000.00 0.00 0.00 0.00 0.00 cash cash Universal Title Universal Title 1,135.00 1,135.00 0.00 200.00 400.00 0.00 5 0 0.00 0.00 as is as is 0.00 0.00 8/21 9/6 100.00 500.00 5 5 0.00 0.00 0 0 0.00 0.00 0 0 $123,465.00 $113,665.00 1,535.00 1,335.00 125,000.00 115,000.00 1,250.00$ 10,000.00$ 35 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, ACCEPTING A BID AND AUTHORIZING THE SALE OF CERTAIN PARKLAND GENERALLY LOCATED AT 4526 W. LAKE HIGHLANDS DRIVE, THE COLONY, DENTON COUNTY, TEXAS; AUTHORIZING THE CITY MANAGER TO EXECUTE ANY AND ALL DOCUMENTS FOR THE SALE OF SAID PARKLAND; REQUIRING THE PROCEEDS FROM SAID SALE OF PARKLAND TO BE USED TO ACQUIRE OR IMPROVE OTHER PUBLIC PARKS; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A REPEALER CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Section 253.001 of the Texas Local Government Code authorizes the City of The Colony, Texas, to sell land owned, held, or claimed as a public park provided the issue of the sale is submitted to the qualified voters of the City of The Colony, Texas, at an election called and held for that purpose; and WHEREAS,on Tuesday, November 7, 2023, the qualified voters of the City of The Colony, Texas, considered the following ballot proposition: “Shall the City of The Colony, Texas sell 0.1434-acres of parkland generally located at 4526 W. Lake Highlands Drive, The Colony, Texas, and more particularly described as Block 7, Lot 39 of the Garza Lake Estates Addition, an addition to the City of The Colony, Denton County, Texas?” (the “Parkland”); and WHEREAS, on November 7, 2023, the qualified voters of the City of The Colony, Texas, approved the sale of said Parkland; and WHEREAS,the City of The Colony, Texas, solicited bids for the Parkland; and WHEREAS,on September 3, 2024, at a regularly scheduled meeting of the City Council of the City of The Colony, Texas, the City Council accepted the bid submitted by SRH Family Trust for the purchase of the Parkland; and WHEREAS,Section 253.001(d) of the Texas Local Government Code provides that the proceeds from the sale of parkland may only be used to acquire and improve other public parks; and WHEREAS,Section 253.001(c) of the Texas Local Government Code authorizes the City Council of the City of The Colony, Texas, to adopt an ordinance directing the City Manager to execute any and all documents for the sale and conveyance of the Parkland. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: Section 1.FINDINGS INCORPORATED The findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. Section 2. That the City Council of the City of The Colony, Texas, authorizes and approves the bid submitted by SRH Family Trust for the sale and conveyance of the Parkland, and authorizes the City Manager to execute any and all documents necessary for the sale and conveyance of the Parkland to SRH Family Trust. 36 2 . Section 3.That the City Council of the City of The Colony, Texas, directs the proceeds from the sale of said Parkland be used to acquire and or improve other public parks, consistent with section 253.001 of the Texas Local Government Code. Section 4.SEVERABILITY CLAUSE It is hereby declared to be the intention of the City Council that the phrases, clauses, sentences, paragraphs and sections of this ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation of this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. Section 5.REPEALER CLAUSE Any provision of any prior ordinance of the City whether codified or uncodified, which are in conflict with any provision of the Ordinance, are hereby repealed to the extent of the conflict, but all other provisions of the ordinances of the City whether codified or uncodified, which are not in conflict with the provisions of this Ordinance, shall remain in full force and effect. Section 6.EFFECTIVE DATE This Ordinance shall become effective immediately upon its passage. PASSED, APPROVED AND ADOPTED by the City Council of the City of The Colony, Texas, on this the 3rd day of September, 2024. APPROVED: ___________________________________ Richard Boyer, Mayor ATTEST: ___________________________________ Tina Stewart, City Secretary APPROVED AS TO FORM: ___________________________________ Jeff Moore, City Attorney 37 Agenda Item No:5.1 CITY COUNCIL Agenda Item Report Meeting Date: September 3, 2024 Submitted by: Isaac Williams Submitting Department: Planning Item Type: Ordinance Agenda Section: Subject: Conduct a public hearing, discuss and consider an ordinance regarding the approval of a Specific Use Permit (SUP) to allow an approximately 9,530 sq. ft. Kennel with outdoor runs known as “The Dog Stop.” The subject site is located at 5000 Main Street Suite 100 C, within the Shopping Center (SC) Zoning District and Gateway Overlay District. (Williams) Suggested Action: Please see the attached staff report, drawings, maps and illustrations for detailed land use, site layout and staff recommendations. Attachments: SUP24-0002 - CC Staff Report The Dog Stop.docx Ord. 2024-xxxx SUP24-0002 The Dog Stop 38 CITY COUNCIL REPORT AGENDA DATE:September 3, 2024 DEPARTMENT:Planning and Development Department SUBJECT:SUP24-0002: 5000 Main Street Suite 100C- The Dog Stop Conduct a public hearing, discuss and consider an ordinance regarding the approval of a Specific Use Permit (SUP) to allow an approximately 9,530 sq. ft. Kennel with outdoor runs known as “The Dog Stop.” The subject site is located at 5000 Main Street Suite 100 C, within the Shopping Center (SC) Zoning District and Gateway Overlay District. OWNER/APPLICANT Owner:Troy Dewan Addison, Texas Applicant:Dennis Hill Celina, Texas EXISTING CONDITION OF PROPERTY The tenant space Suite 100C at 5000 Main Street recently became vacant; it was previously developed as a retail store known as Aaron’s Rent to Own which is now permanently closed. PROPOSED DEVELOPMENT The applicant requests Specific Use Permit (SUP) approval to allow the proposed Kennel with outdoor runs within The Colony Park Shopping Center. The proposed use will include dog supply sales, grooming, indoor boarding, dog daycare, training and an approximately 1,620 sq. ft. outdoor relief area. The outdoor area will be constructed with synthetic turf and a fence meeting the standards of the Gateway Overlay. In The Colony Code of Ordinances, the definition of Kennels, [outdoor runs] states that breeding operations, animal transportation services, outdoor boarding and commercial sale of domesticated animals may be included as part of an outdoor kennel facility. This will not be permitted at The Dog Stop therefore will be excluded from the Specific Use Permit. PRIOR ACTION On August 13, 2024 the Planning and Zoning Commission voted (6-0) to approve the request regarding the Specific Use Permit (SUP) of a Kennel with outdoor runs known as “The Dog Stop” at 5000 Main Street Suite 100 C (The Colony Park Shopping Center) subject to the exclusion of breeding operations, animal transportation services, outdoor boarding and commercial sale of domesticated animals. ADJACENT ZONING AND LAND USE North - Shopping Center (SC) Zoning District - Texas Family Fitness South - Shopping Center (SC) Zoning District - Open lot/ South Colony Blvd East - Shopping Center (SC) Zoning District – Rear Alley, Colony AC West -Shopping Center (SC) Zoning District – The Colony Park Shopping Center Lot DEVELOPMENT REVIEW COMMITTEE (DRC) REVIEW The Development Review Committee (DRC) finds the SUP meets the requirements of The Colony Code of Ordinances, Appendix A, Zoning Ordinance and other applicable ordinances as outlined in the Staff Report and recommends approval. ATTACHMENTS 1. Staff Analysis 2. Location Map 3. Site Plan and photos 4. Applicant Narrative 5. Planning and Zoning Commission minutes 39 ATTACHMENT 1 Staff Analysis Land Use Analysis The subject site is located within the Shopping Center (SC) Zoning District. This establishment will be considered a Kennel with outdoor runs. Kennels with outdoor runs requires a SUP in all districts where it is not prohibited. Specific Use Permit approval is intended to offer further evaluation of certain uses and the appropriateness of the operation of those uses within the context of the surrounding area. Uses within the Shopping Center (SC) Zoning District typically include a mix of retail, office and personal services. Nearby uses in the SC district include: a fitness center, cat boarding facility, a home goods store and personal services [hair salon, nail salon, spa,]. The proposed Kennel is not explicitly consistent with nearby uses, however it is considered a compatible land use in the context of the mixed of uses within the surrounding area. The definitions for Indoor and Outdoor Kennels in The Colony Zoning Ordinance is as follows: “Kennels, indoor/commercial pet sitting: An establishment with indoor pens in which more than six adult dogs or domesticated animals are housed during the day or overnight, groomed, boarded, exercised, trained, or sold for commercial purposes. Animal transportation service may be provided. No outdoor runs or pens are allowed. This definition excludes any breeding operation. “Kennels, outdoor runs: An establishment that includes any outdoor areas for play, exercise or ventilation in which more than six adult dogs or domesticated animals are housed during the day or overnight, groomed, bred, boarded, exercised, trained, or sold for commercial purposes. Breeding operations may be included as part of an outdoor kennel facility. Animal transportation service may be provided. The Dog Stop offers most of the services permitted for indoor Kennels, however the outdoor activity area necessitates the “Outdoor” classification. The “outdoor” category also permits breeding, sales and outdoor kennels. The applicant has indicated that The Dog Stop will provide an outdoor area, but these operations will not contain breeding, animal sales or outdoor kennels. As proposed the outdoor area is used only during the daytime for dogs to have an outside outlet from approximately 8 am to 5-6 pm on average. 40 Specific Use Permit (SUP) Criteria In accordance with Section 10-905 (Special Use Permits - Approval Criteria) of the Zoning Ordinance, the Planning and Zoning Commission and City Council shall review and evaluate a Specific Use Permit application using the following criteria: 1.Conformance with the City of The Colony’s Comprehensive Plan; The Future Land Use Map identifies this area as “Mixed-use Center: Neighborhood Shopping Destination” which shall include new development to expand the retail and service offerings. The proposed land use is in conformance with The Colony Comprehensive Plan. 2.Conformance with applicable regulations and standards established by the zoning regulations; With the approval of the SUP and conditions, the application will be in conformance with the Zoning Ordinance. 3.Compatibility with existing or permitted uses on abutting sites, in terms of building height, build and scale, setbacks on open spaces, landscaping and site development, access and circulation features, architectural compatibility; The site subject is part of a multi-tenant shopping center and is compatible with the permitted uses on abutting sites. 4.Safety and convenience of vehicular and pedestrian circulation in the vicinity, including traffic reasonably expected to be generated by the proposed use and other uses reasonable and anticipated in the area, existing zoning and land uses in the area; The site layout and traffic circulation has been reviewed and approved by the City. The site has an existing sidewalk the runs along the south wall of the building. The sidewalk will remain, but will have to be accessed via gates from the fence being built around the proposed outdoor area. This is not anticipated to effect circulation as the sidewalk leads to the alley and there is a sidewalk along S. Colony Blvd for pedestrian use. 5.Protection of persons and property from erosion, flood, or water damage, fire, noise, glare, air quality, generation of dust and odors, and similar hazards and impacts; The Dog Stop will construct noise abatement panels mitigating any noise for the adjacent neighbor.Additionally, The Dog Stop uses synthetic turf designed specifically for pet usage over an air drain geo-cell system and uses enzymatic solutions to break down dog urine to prevent odors. 6.Location, lighting and type of signs; the relation of signs to traffic control and adverse effect of signs on adjacent properties; All existing lighting will remain as previously approved. All signage shall be reviewed in accordance with the Sign Ordinance. 7.Adequacy and convenience of off-street parking and loading facilities; The subject site meets the Zoning Ordinance requirements for off-street parking and no increase in off-street parking is anticipated. 41 8.Determination that the proposed use and site development, together with any modifications applicable thereto, will be compatible with existing or permitted uses in the vicinity; The subject site is developed, however the applicant proposes modifications to mitigate sound and smell intended to increase compatibility and mitigate potential negative impacts with the surrounding land uses within the vicinity. 9.Determination that any conditions applicable to approval are the minimum necessary to minimize potentially unfavorable impacts on nearby uses in the same district and surrounding area Staff determined that exclusion of breeding operations, animal transportation services, outdoor boarding and commercial sale of domesticated animals are special conditions that will minimize potentially unfavorable impacts on nearby uses in the same district and surrounding area. 10.Determination that the proposed use, together with the conditions applicable thereto, will not be detrimental to the public health, safety, or welfare of materially injurious to properties or improvements in the vicinity. With the exclusions and conditions as reflected the proposed use is not anticipated to be detrimental to the public health, safety, or welfare to properties or improvements in the vicinity. Infrastructure Improvements No specific public infrastructure improvements are planned for this area. Notification The Zoning Ordinance requires newspaper notification a minimum of fifteen (15) days prior to the City Council meeting. Notice for this SUP Public Hearing was published in The Dallas Morning News on August 16, 2024. In addition, the Zoning Ordinance requires notification of property owners located within 200 feet of the subject property. Public Hearing notices were mailed on August 16, 2024 to adjacent property owners. No comments either for or against the SUP were received as of printing of this packet. Development Review Committee Review The Development Review Committee (DRC) finds the SUP meets the requirements of The Colony Code of Ordinances, Appendix A, Zoning Ordinance and other applicable ordinances as outlined in the Staff Report and recommends approval. 42 1 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2024-_____ SPECIFIC USE PERMIT (SUP) – THE DOG STOP AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, APPROVING A SPECIFIC USE PERMIT (SUP) TO ALLOW A KENNEL WITH OUTDOOR RUNS, KNOWN AS THE DOG STOP TO BE LOCATED AT 5000 MAIN STREET SUITE 100C, THE COLONY, TEXAS, CONTAINING A TOTAL AREA OF APPROXIMATELY 9,530 SQUARE FEET, AND IS WITHIN THE SHOPPING CENTER (SC) ZONING DISTRICT AND THE GATEWAY OVERLAY DISTRICT; PROVIDING A REPEALER CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Planning and Zoning Commission and the City Council of the City of The Colony, Texas, in compliance with the laws of the State of Texas, and the Code of Ordinances of the City of The Colony, Texas, have given any requisite notices by publication and otherwise, and have held due public hearings, and afforded a full and fair hearing to all property owners generally, and to all persons interested, and is of the opinion and finds that Specific Use Permit No. SUP24-0002 should be approved to allow a Kennel with outdoor runs, known as The Dog Stop, to be located at 5000 Main Street, Suite 100C, The Colony, Texas 75056, and is within the Shopping Center (SC) Zoning District and the Gateway Overlay District as reflected on and attached hereto as Exhibit A of this Ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. That the findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. SECTION 2.That the City Council of the City of The Colony, Texas, does hereby approve the Specific Use Permit to allow a Kennel with outdoor runs for The Dog Stop, located at 5000 Main Street, Suite 100C, The Colony, Texas 75056, and is within the Shopping Center (SC) Zoning District and Gateway Overlay District as reflected on and attached hereto as Exhibit A of this Ordinance. SECTION 3. That the above property shall be developed and used in compliance with the conditions which are attached hereto and incorporated herin as Exhibit B. SECTION 4.That it is hereby declared to be the intention of the City Council of the City of The Colony, Texas, that the phrases, clauses, sentences, paragraphs and sections of this Ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this Ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, 43 2 sentences, paragraphs and sections of this Ordinance, since the same would have been enacted by the City Council without the incorporation of this Ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 5. That any provision of any prior ordinance of the City whether codified or uncodified, which are in conflict with any provision of this Ordinance, are hereby repealed to the extent of the conflict, but all other provisions of the ordinances of the City whether codified or uncodified, which are not in conflict with the provisions of this Ordinance, shall remain in full force and effect. SECTION 6. That this Ordinance shall become effective immediately upon its passage. DULY PASSED by the City Council of the City of The Colony, Texas, this 3rd day of September, 2024. Richard Boyer, Mayor ATTEST: Tina Stewart, City Secretary APPROVED AS TO FORM: Jeff Moore, City Attorney 44 3 Exhibit A 45 4 Exhibit B The following uses will not be permitted at The Dog Stop: 1. Breeding operations 2. Animal transportation services 3. Outdoor boarding 4. Commercial sale of domesticated animals 46 5 The Dog Stop First Amended Specific Use Permit Application Project Narrative Applicant: Dennis B. Hill on behalf of Happy Tails of Little Elm, LLC, dba “The Dog Stop — TheColony”,3605 Brinkley Drive, Celina,Texas 75009. 530-305-9375; dhill@thedogstop.com Owner: RED BIRD HIGHLAND, LTD., a Texas limited partnership, JAS MAVERICK PROPERTIES, LLC, a California limited liability company, and CHRISTMANNIER, LLC, a Texas limited liability company, as cotenants under that certain Tenancy in Common Agreement for The Colony Marketplace dated June 26, 2014, known as COLONY MARKETPLACE TENANCY IN COMMON. Happy Tails of Little Elm, LLC, dba The Dog Stop — The Colony, is applying for a Specific Use Permit to allow a The Dog Stop franchise store to operate at 5000 Main Street, Suite 100C, The Colony, TX 75056 (“Premises").The Premises includes 7,910 square feet of indoor space and 1,500 square feet of outdoor space (see Exhibit "A").The current zoning of the Premises is Shopping Center, which allows kennels with indoor and outdoor runs only if a Specific Use Permit is granted. The Dog Stop franchise store is a retail store that includes dog supply sales, grooming, indoor boarding, dog daycare, and training. The Dog Stop does not use outdoor kennels; the outdoor area is used only during the daytime for dogs to have an outside outlet from approximately 8 am to 5-6 pm on average. This Specific Use Permit application seeks approval of indoor and outdoor use of the Premises to be designated as “Kennels” as defined in The Colony, Texas Code of Ordinances, but excludinq breeding. The outdoor use is depicted in the site plan as Exhibit A attached hereto and incorporated herein by reference, which includes outdoor dog play areas adjacent to the building. The Dog Stop does not request any changes to the existing site plan other than allowing the outdoor areas as shown on Exhibit A; the existing boundaries, buildings, drainage, access, parking lot, landscaping, lighting, traffic pattern, and other existing infrastructure shown on Exhibit A will remain the same. The second page of Exhibit A shows a colored elevation of the side outside area. The Dog Stop will meet all signage requirements of The Colony to place signs on the building façade and shopping center monument, consistent with previous signage of the previous tenant. The proposed use is compatible with existing uses in the vicinity, which include businesses such as a cat grooming and boarding facility, an animal hospital, Big Lots, and an aquarium business. About The Dog Stop franchise: The Dog Stop is a national franchise that strives to provide the best possible services for dog families. A The Dog Stop franchise store is an all-inclusive one-stop shop for dog families 47 6 offering daycare, indoor boarding, grooming, retail products, in-home services and training. The Dog Stop does NOT breed or self dogs and does not board dogs outdoors. The Dog Stop does promote non-profit organizations related to dogs, such as those that assist animal shelters and promote pet adoptions. The Dog Stop’s mission is to be the industry’s premier dog care provider, while staying committed to our core values of unquestionable integrity, superior performance, and dedicated support of their franchisee partners and the communities they serve. The Dog Stop stores are proud of the care they provide dogs and are very transparent. We will provide a tour of our store to anyone who drops in and we provide live camera feeds showing the daycare areas. The reason we are so transparent is because we provide excellent care and are not afraid to demonstrate that on a daily basis. The Doq Stop concept: The Dog Stop facilities are designed and constructed using the latest state-of-the-art materials and methods to provide a clean and safe environment for the dogs entrusted to their care, and to be good neighbors. The Dog Stop is committed to proactively limit unfavorable impacts on its neighbors by addressing noise and odor concerns. Here are some of the ways that we meet these goals: Interior: The Dog Stop franchise mandates daily cleaning and educates its franchisees on proper cleaning agents and methods. The Dog Stop cleans every day, during all business hours using the best cleaning methods and agents. Feces and urine are cleaned immediately, and each kennel is thoroughly cleaned daily. Each daycare area is sprayed down with disinfectant and deodorizer, and soaked for at least 10 minutes prior to being rinsed and wiped down. The Dog Stop utilizes Gator Kennels, which are nonflammable, urine resistant, FDA approved for use due to natural anti-microbial properties, does not contain silicone, does not contain lead or other heavy metals, and are recyclable. The Dog Stop requires Sherwin Williams Epoxy Flooring on the floors and up the walls by 4 inches to prevent bacteria. The epoxy is durable and sustainable, hygienic, easy to clean and maintain, provides slip-resistance, and is chemical resistant. The Dog Stop also utilizes state of the art HVAC ventilation systems, including Dedicated Outdoor Air Systems (DOAS), which ensures that the air inside of the Premises is continually replaced with fresh outside air. On average a The Dog Stop store will spend between $150,000 to $250,000 for a high efficiency HVAC DOAS filtered system. We will ensure that the existing HVAC system is upgraded to provide outside air circulation and filtering, to provide humidity control and clean, fresh air inside to minimize any smell and air-born bacteria. Furthermore, The Dog Stop utilizes large commercial fans that also helps circulate the air. 48 7 The Dog Stop requires the walls of the daycare and kennel areas to have fiber reinforced plastic (FRP) on the walls. This is hygienic and easy to clean, moisture resistant (preventing mold and mildew), and will not rust, corrode, scratch or shatter. The Dog Stop utilizes the highest level of cleaning agents and supplies. We use Spartan animal care supplies. Spartan is the world-wide standard in animal facilities, and are also the standard for cleaning in all uses including hospitals, childcare facilities, grocery stores, and schools for examples. The products used and cleaning processes are tightly managed by The Dog Stop’s corporate support team and covered in franchisee training. Pet waste is cleaned immediately. The daycare areas are supervised by staff at all times, and the dog waste is cleaned immediately and mopped. Dog feces is bagged and placed in industrial trash bags which are sealed prior to disposal. The Dog Stop proactively avoids noise problems with its neighbors. The Dog Stop will assess the construction of the demising wall between the Premises and the only adjacent neighbor, which is Texas Family Fitness on the north side. The Dog Stop is committed to mitigating any noise created by the dogs and will install noise abatement panels as needed to ensure the Premises meets the noise standards for The Colony and Landlord. The nearest residential house to the Premises is over five hundred feet away. The dogs usually do not stay outside for very long because they like to be inside near their human attendant, and in the afternoon the dogs are usually so tired from playing in the morning that their activity levels are very diminished; simply put they mostly take naps in the afternoon because they have had so much fun in the morning. The boarding dogs are fed and placed in their kennels in the early evening, usually from 5-7 pm. The Dog Stop stores have online cameras that can be viewed to see the activity levels inside and out and we encourage people to view them by going to www.thedogstop.com and selecting a location and then accessing the dog cameras. Exterior: The Dog Stop uses synthetic turf designed specifically for pet usage over an air drain geocell system and compacted aggregate to allow for drainage and airflow. In addition, The Dog Stop sprays down the turf area daily and uses enzymatic solutions to break down dog urine. The Dog Stop-The Colony will utilize 8-foot solid fencing to avoid escape incidents, and to prevent the dogs from seeing outside of the pet relief area, which minimizes dog barking and helps as a barrier to shield/muffle the noise. The fencing material will be Masonry, Stone, Brick, Exposed Aggregate, or Stucco with Masonry Columns. The fencing will be fade resistant and will not rot, warp, or decay, thereby maintaining a long-lasting high-quality look. The outdoor relief areas will be accessed through standard doors approximately 30 inches wide, thereby minimizing any inside noise transferring to the outside. 49 8 Benefits to The Colony: The Dog Stop will benefit The Colony and its residents by providing desirable goods and services in the heart of the city. First, this store will help fill the great demand for dog daycare and boarding in The Colony area. The demand for dog daycare and boarding is great and the supply is not meeting the demand, resulting in residents utilizing services that may not be safe or appropriate. The Colony is experiencing a lot of dog boarding activities in residential areas, which is not always desirable for more than one or two dogs. Indeed, according to CBSNewsTexas.com, in late 2023 The Colony police made arrests concerning animal cruelty in a situation where a dog boarding business was being operated in residential homes with dogs that appeared to be malnourished, with worms, parasites and Parvo. It was reported that two of the dogs perished. Second, this store will upgrade and utilize an existing building to add a new retail store to the community, providing The Colony residents with additional options to purchase high-quality retail dog related items locally, such as dog food, dog treats and dog toys. This is consistent with The Colony’s comprehensive plan goal of redeveloping existing older shopping centers to create walkable mixed-use centers. The Dog Stop will substantially benefit the local economy. The store will employ about 20 people on an ongoing basis. Of course, the store will also increase The Colony’s tax base. The Dog Stop will be a good neighbor by making sure it constructs leasehold improvements that are high-quality and minimize the chances that other businesses or residences could be annoyed by noise or odors. Finally, The Dog Stop will be active in collaborating with local charities to promote dog fostering and adoptions. Simply put, The Dog Stop will be a great addition to The Colony community and is an appropriate use for this particular Premises. 50 9 51 Agenda Item No:5.2 CITY COUNCIL Agenda Item Report Meeting Date: September 3, 2024 Submitted by: Isaac Williams Submitting Department: Planning Item Type: Ordinance Agenda Section: Subject: Conduct a public hearing discuss and consider an ordinance regarding amendments to Planned Development 26 (PD-26) to reflect new development standards and amend the development plan regarding single-family development of Lot 1R1, Block 16. (Williams) Suggested Action: Please see the attached staff report, drawings, maps and illustrations for detailed land use, site layout and staff recommendation Attachments: PDA24-0002 CC Staff Report Water's Edge - draft.doc Ord. 2024-xxxx PD26 Waters Edge PDA Amendment 52 CITY COUNCIL REPORT AGENDA DATE:September 3, 2024 DEPARTMENT:Planning and Development Department SUBJECT: PDA24-0002 –Water’s Edge – Planned Development Amendment Conduct a public hearing discuss and consider an ordiance regarding amendments to Planned Development 26 (PD-26) to reflect new development standards and amend the development plan regarding single-family development of Lot 1R1, Block 16. OWNER/APPLICANT Owner: Blue Waters Edge Homeowners Association, Inc. Dallas, TX Applicant: London Ryon Dallas, TX Sambatek, LLC EXISTING CONDITION OF PROPERTY Planned Development 26 commonly referred to as Waters Edge, is an approximately 27.5-acre single-family zoning district bound by Lake Lewisville, Planned Development 1 (PD-1) and Planned Development 2 (PD-2) and the Mobile Home (MH) Zoning District. The Planned Development contains forty-three (43) single-family lots and a common area lot. ADJACENT ZONING AND LAND USES North Planned Development 1 (PD-1) – Undeveloped single-family South Planned Development 26 (PD-26) – Single family East Planned Development 2 (PD-2) – Single-family West Planned Development 2 (PD-2) – Single-family BACKGROUND Planned Development 26 (PD-26) was approved by the City Council in August of 2013. The establishing planned development identified an area dedicated to Recreational Vehicle/Boat Storage Common Area for usage by the residents of Waters Edge. To this point no use of the common area for the original purpose has occurred and is no longer desired. The requested change was initiated by the Homeowners Association to better accommodate the overall development. PROPOSED REQUEST The proposed amendment reflects a change of land use on a common lot [Lot 1R1, Block 16] from Recreational Vehicle/Boat Storage Common Area to single-family use. Lot 1R, will be renamed to 1R1 upon plat approval; the replat is intended to reflect the single-family setbacks established in accordance with this subject. A companion replat RP24-0002 will reorient the front setback lines of Lot 1R1, Block 16 from Haven Hills Drive to Waters Edge Court. Relocation of front setback lines toward Waters Edge Court will address the home internally to the development. 53 NOTIFICATION The Zoning Ordinance requires newspaper notification a minimum of fifteen (15) days prior to the City Council meeting for text amendments. Notice for this Public Hearing was published in The Dallas Morning News on August 16, 2024. In addition, Zoning Ordinance also requires notification of property owners located within 200 feet of the subject property a minimum of ten (10) days prior to the public hearing. Public Hearing notices were mailed on August 16, 2024 to adjacent property owners. No comments either for or against the Planned Development Amendment were received as of printing of this packet. RECOMMENDATION The Development Review Committee (DRC) recommends approval of the amendments to Planned Development-26. ATTACHMENTS 1. Location Map 2. Development Standards (ordinance) 3. Development Plan (ordinance) 54 1 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2024-____ (WATER’S EDGE PLANNED DEVELOPMENT NO.26) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, AMENDING (ORDINANCES 2013-2018 AND 2020- 2403) PLANNED DEVELOPMENT 26 (PD-26) BY AMENDING THE WATER’S EDGE DEVELOPMENT PLAN; AND BY REPEALING AND REPLACING WATER’S EDGE DEVELOPENT STANDARDS 1.3 COMMON AREA USES FOR WATER’S EDGE, FOR AN APPROXIMATELY 27.53-ACRE PLANNED DEVELOPMENT; PROVIDING A REPEALING CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING A PENALTY OF FINE NOT TO EXCEED THE SUM OF TWO THOUSAND DOLLARS ($2,000.00) FOR EACH OFFENSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the property described on Exhibit A is currently zoned planned development 26 (PD-26); and WHEREAS, the City Council of the City of The Colony, Texas, approved the Planned Development zoning for PD-26 on August 20, 2013 by adopting Ordinance No. 2013-2018; and amended the Planned Development by Ordinance 2020-2403. WHEREAS, the applicant has made a request to amend the development plan as reflected on Exhibits B and development standards 1.3 Common Area Uses on Exhibit C for the approximately 27.53-acre planned development described on the attached Exhibit A and known as Water’s Edge; and WHEREAS, after discussion and consideration, the City Council has determined that the revised development plan on Exhibit B and revised development standards on Exhibit C should be approved. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. That the findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. SECTION 2.That PD-26 is hereby amended for the property described in Exhibit A of this Ordinance, by amending the development plan as shown on Exhibit B of this Ordinance, and amending Development Standards as shown on Exhibit C of this Ordinance, which exhibits are attached hereto and incorporated herein for all purposes. 55 2 SECTION 3. That should any sentence, paragraph, subdivision, clause, phrase, or section of this Ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this Ordinance as a whole, or any part or provision thereof other than the part so decided to be unconstitutional, illegal, or invalid, and shall not affect the validity of the Comprehensive Zoning Ordinance as a whole. SECTION 4.That any person, firm, or corporation violating any of the provisions or terms of this Ordinance shall be subject to the same penalty as provided for in the Code of Ordinances of the City of The Colony, Texas, as heretofore amended, and upon conviction shall be punished by a fine not to exceed the sum of Two Thousand Dollars ($2,000.00) for each offense; and each and every day such violation shall continue shall be deemed to constitute a separate offense. SECTION 5. That this Ordinance shall take effect immediately from and after its passage and the publication of its caption, as the law and charter in such cases provide. DULY PASSED by the City Council of the City of The Colony, Texas, this the __ day of ______, 2024. APPROVED: Richard Boyer, Mayor ATTEST: Tina Stewart, City Secretary APPROVED AS TO FORM: Jeff Moore, City Attorney 56 3 WATER'S EDGE PLANNED DEVELOPMENT DISTRICT ORDINANCE No. 26 Exhibit A A-1 Legal Description of Water's Edge Subdivision Being a tract of land situated in the Richard G. Dunlap Survey, Abstract No. 352, Denton County, Texas, and encompassing all of The Water's Edge, an addition to Denton County, Texas as recorded in Cabinet N, Page 18 of the Plat Records of Denton County, Texas, and also encompassing all of The Water's Edge, an addition to Denton County, Texas as recorded in Cabinet O, Page 138 of said Plat Records of Denton County, Texas, and also encompassing all of Water's Edge, an addition to Denton County, Texas as recorded in Cabinet P, Page 70 of said Plat Records of Denton County, Texas, said tract of land being more particularly described by metes and bounds as follows: BEGINNING at a point for the south of said The Water's Edge as recorded in Cabinet N, Page 18 of the Plat Records of Denton County, Texas, said point being in an east line of a tract of land described as Tract No. G-609 deeded to the United States Of America as recorded in Volume 381, Page 173 of the Deed Records Of Denton County, Texas, said point also being in the west line of a of land described as Tract No. G-601 deeded to the United States of America as recorded in Civil No. 772 of the District Court Records of the United States District Court for the Eastern District of Texas, Sherman Division; THENCE North 46 degrees 41 minutes 13 seconds West, with the westerly line of said The Water's Edge as recorded in Cabinet N, Page 18 of the Plat Records of Denton County, Texas, a distance of 394.93 feet to a point for corner; THENCE North 06 degrees 52 minutes 01 seconds West, with the westerly line of said The Water's Edge as recorded in Cabinet N, Page 18 of the Plat Records of Denton County, Texas, a distance of390.86 feet to a point for comer; THENCE North 38 degrees 03 minutes 21 seconds West, with the westerly line of said The Water's Edge as recorded in Cabinet N, Page 18 of the Plat Records of Denton County, Texas, a distance of479.87 feet to a point for comer; THENCE North 18 degrees 25 minutes 28 seconds East, with the westerly line of said The Water's Edge as recorded in Cabinet N, Page 18 of the Plat Records of Denton County, Texas, a distance of 191.39 feet to a point for corner; THENCE North 40 degrees 54 minutes 11 seconds East, with the westerly line of said The Water's Edge as recorded in Cabinet N, Page 18 of the Plat Records of Denton County, a distance of 797.81 feet to a point for the northwest corner of said The Water's Edge as recorded in Cabinet N, Page 18 of the Plat Records of Denton County, Texas; 57 4 THENCE South 58 degrees 49 minutes 36 seconds East, with the northerly line of said The Water's Edge as recorded in Cabinet N, Page 18 of the Plat Records of Denton County, Texas, a distance of 239.38 feet to a point comer; THENCE South 20 degrees 45 minutes 06 seconds East, with the northerly line of said The Water's Edge as recorded in Cabinet N, Page 18 of the Plat Records of Denton County, Texas, a distance of 452.61 feet to a point for corner; THENCE North 13 degrees 11 minutes 36 seconds East, with the northerly line of said The Water's Edge as recorded in Cabinet N, Page 18 of the Plat Records of Denton County, Texas, a distance of 374.23 feet to a point for corner, THENCE North. 70 degrees 46 minutes 20 seconds East, with the northerly line of said The Water's Edge as recorded in Cabinet N, Page 18 of the Plat Records of Denton County, Texas, a distance of 267.58 feet to a point for the northeast comer of said The Water's Edge as recorded in Cabinet N, Page 18 of the Plat Records of Denton County, Texas, said point being in an existing west City Limit Line of The Colony and in the east line of said Tract G-609, said point also being in a west line of Garza-Little Elm Lake Estates, an addition to the City of The Colony, Denton County, Texas; THENCE South 00 degrees 09 minutes 17 seconds West, with the east line of said The Water's Edge as recorded in Cabinet N, Page 18 of the Plat Records of Denton County, Texas, with said existing west City Limit Line of The Colony, the east line of said Tract G-609 and with the west line of said Garza-Little Elm Lake Estates, a distance of 933.56 feet to a point for an exterior ell comer in the east line of said The Water's Edge as recorded in Cabinet N, Page 18 of the Plat Records of Denton County, Texas and for an exterior ell comer in the east line of said Tract G-609, said point being an interior ell comer in said existing west City Limit Line of The Colony, said point also being the southeast comer of said Water's Edge as recorded in Cabinet P, Page 70 of said Plat Records of Denton County, Texas, said point also being the southwest comer of said Garza-Little Elm Lake Estates, said point also being in the north line of Haven Hills Mobile Home Estates, an addition to the City of the Colony, Denton County, Texas; THENCE North 89 degrees 53 minutes 06 seconds West, with the east line of said The Water's Edge as recorded in Cabinet N, Page 18 oft-he Plat Records of Denton County, Texas, with the south line of said Water's Edge as recorded in Cabinet P, Page 70 of said Plat Records of Denton County, Texas, with said existing west City Limit Line of The Colony, with the east line of said Tract 0-609 and with the north line of said Haven Hills Mobile Home Estates, a distance of 654.12 feet to a point for an interior ell comer of said The Water's Edge as recorded in Cabinet N, Page 18 of the Plat Records of Denton County, Texas and for an interior ell comer in the east line of said Tract G-609, said point being an exterior ell comer in said existing west City Limit Line of The Colony, said point also being the northwest comer of said Haven Hills Mobile Home Estates; 58 5 THENCE South 00 degrees 01 minutes 45 seconds East, with the east line of said The Water's Edge as recorded in Cabinet N, Page 18 of the Plat Records of Denton County, Texas, with said existing west City Limit Line of The Colony, with the east line of said Tract G-609 and with the west line of said Haven Hills Mobile Home Estates, passing at a distance of 500.00 feet a point for an exterior ell corner in said existing west City Limit Line of The Colony, said point being the southwest comer of said Haven Hills Mobile Home Estates and the northwest corner of said Tract No. G- 601, in all, a distance of 794.48 feet to the POINT OF BEGINNING, and containing 1,176,635-square feet or 27.012 acres of land, more or less. Note: (1) Basis of Bearing is referenced to the plat of The Water's Edge, an addition to Denton County, Texas as recorded in Cabinet N, Page 18 of the Plat Records of Denton County, Texas. Exhibit A A-2 Legal Description of Water's Edge Subdivision Being a tract of land situated in the George Emberline Survey, Abstract No. 394, the City of The Colony, Denton County, Texas, and encompassing all of Lot 1R, Block 16 as shown on Garza-Little Elm Lake Estates Addition, an addition to the City of The Colony as recorded in Cabinet N, Page 144 of the Plat Records of Denton County, Texas, and also encompassing all of The Water's Edge, an addition to Denton County, Texas as recorded in Cabinet O, Page 138 of said Plat Records of Denton County, Texas, and also encompassing all of Water's Edge, an addition to Denton County, Texas as recorded in Cabinet P, Page 70 of said Plat Records of Denton County, Texas, said tract of land being more particularly described by metes and bounds as follows: BEGINNING at a 1/2" capped iron rod denoted "WRC" set for the corner at the recognized Southwest corner of said Lot 1R and at the intersection of the easterly right-of way line of Waters Edge Court and Northerly Waters Edge Drive; THENCE North 01 degree 39 minutes 55 seconds West, along the west line of said Lot 1R, a distance of 157.15 feet to a 1" Iron pipe found for the north corner of said Lot 1R; THENCE South 54 degrees 27 minutes 00 seconds East, along the northeasterly line of said Lot 1R, a distance of 220.38 feet to a 1/2" capped iron rod denoted "WRC" found for the northeast corner of said Lot 1R in the northwesterly right-of-way line of Haven Hill Drive (a variable width right-of-way) and being at a point in a curve concave to the Southeast having a radius of 112.14 feet and a chord bearing and distance of South 37 degrees 56 minutes 16 seconds West, a distance of 7.39 feet; 59 6 THENCE with said northwesterly right-of-way line and said curve, an arc distance of 7.39 feet to a 1/2" capped iron rod denoted "WRC" found for corner; THENCE South 36 degrees 03 minutes 03 seconds West, continuing along said northwesterly right-of-way line, a distance of 44.99 feet to a point at the northeast corner of a corner clip at the intersection of said Haven Hill Drive and the northeasterly right- of-way line of Waters Edge Drive (a 60-foot right-of-way), from which a 1/2" capped iron rod denoted "WRC" found for the south corner of said Lot 1R bears South 36 degrees 03 minutes 03 seconds West, a distance of 30.00 feet; THENCE South 75 degrees 45 minutes 14 seconds West, along the northwesterly line of said corner clip, a distance of 46.16 feet to a point on the northeasterly line of said Waters Edge Drive and a curve concave to the South having a radius of 330.00 feet and a chord bearing and distance of North 76 degrees 02 minutes 15 seconds West, a distance of 101.99 feet, from which a 1/2" capped iron rod denoted "WRC" found for the south corner of said Lot 1R bears southeasterly along a central angle of 05 degrees 12 minutes 38 seconds, an arc distance of 30.01 feet; THENCE with said northeasterly right-of-way line and said curve an arc distance of 132.41 feet to the POINT OF BEGINNING and enclosing 17,865-square feet, or 0.4101- acres of land more or less. Note: (1) Basis of Bearing is based on Texas State Plane Coordinate System, NAD83 (2011 adjusted), North Central Zone 4202. 60 7 61 8 EXHIBIT C REVISED DEVELOPMENT STANDARDS 1.3 Common Area Uses. Lot 1, Block C; and Lot 2R, Block C shall be common area and private streets. Common areas are to be maintained by the Homeowners Association for the property (the "Association") and/or the individual property owners. 62 Agenda Item No:5.3 CITY COUNCIL Agenda Item Report Meeting Date: September 3, 2024 Submitted by: Tina Stewart Submitting Department: General Admin Item Type: Resolution Agenda Section: Subject: Discuss and consider approving 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 2024-25, and schedule a public hearing for September 17, 2024, concerning the levy of special assessments. (Maurina) Suggested Action: Attachments: The Colony Grandscape PID - SAP - 2024 25 Annual Service and Assessment Plan v3.docx Res. 2024-xxx 2024-2025 Prelim PID Assessment Plan 63 1775.016\874945.7 City of The Colony Public Improvement District No. 1 Annual Preliminary Service and Assessment Plan Update (Assessment Year October 1, 2024 to September 30, 2025) Approved by City Council on September 3nd, 2024 64 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 2 1775.016\874945.7 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, 2024 to September 30, 2025)" (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. 65 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 3 1775.016\874945.7 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 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 Improvements 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 66 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 4 1775.016\874945.7 Development Public Improvements could be identified. As described below, the City has levied 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 67 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 5 1775.016\874945.7 Agreements." Assessment Revenue from the 2013 Facility Public Improvement Assessment 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; 68 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 6 1775.016\874945.7 and, additional information for the Related Development Public Improvements will be included in future updates to the Service and Assessment plan as development progresses. 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 Denton 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; (15) GRANDSCAPE ADDITION PHASE II BLK H LOT 4R2-1 consisting of 10.35 acres as identified as Denton CAD Property ID No. 1015683; (16) GRANDSCAPE ADDITION PHASE II BLK H LOT 4R1 consisting of 3.581 acres as identified as Denton CAD Property ID No. 1003642; (17) GRANDSCAPE ADDITION PHASE II BLK E LOT 1R consisting of 1.029 acres and Identified as Denton CAD Property ID No. 1004631’ (collectively 1.2(1)-(17) 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 69 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 7 1775.016\874945.7 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. 3.6 The annual costs for the Additional Facility Public Improvements, Waterfront Public Improvements and Related Development Public Improvements are estimated in the Official Report for the 2023-24 Public Improvements Cost attached as Exhibit B. The total cost of the Additional Facility Public Improvements is estimated to be $655,901 (the "2024-25Additional Facility Public Improvements Cost") as shown on Exhibit B. The annual total cost of the Waterfront Public Improvements is estimated to be $54,167 (the "2024-25 Waterfront Public Improvements Cost") as shown on Exhibit B. The annual total cost of the Related Development Public Improvements is estimated to be $442,381 (the "2024-25 Related Development Public Improvements Cost") as shown on Exhibit B. The individual line item costs shown in the Official Report 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 $1,152,450. The 2024-25 Additional Facility Public Improvements Cost, 2024-25 Waterfront Public Improvements Cost, and 2024-25 Related Development Public Improvements Cost are sometime referred to collectively as the "2024-25 Public Improvements Cost." A reconciliation of the 2023-24 Public Improvement Costs yielded a $385,496 surplus. To provide operations funding during the lag period between the budget commencement and the annual assessment collection $284,166 (90 days of operating costs) was allocated to a “Pre-paid Expense” line item. An additional $49,140 is being added to the total assessment to recover costs from parcel-specific services ("Direct Supplemental Services") as described in Exhibit D. The total sum of the 2024-25 Public Improvements Cost ($1,152,450), the 90 days of operating costs reserve ($284,166), and the parcel specific Direct Supplemental Services ($49,140) brings the overall 2024-25 costs to $1,485,757. The 2022-23 surplus of $385,496 was allocated proportionately to reduce the 2024-25 Assessment from $1,485,757 to $1,100,260.58. 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 70 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 8 1775.016\874945.7 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. 4.3 The projected Additional Facility Public Improvements Cost is $655,901, and for the next five years is allocated as shown on Exhibit C-2. The annual indebtedness for the Additional Facility Public Improvements shown on Exhibit C-2 is a portion of the Additional Facility Assessment the City has levied or expects to levy against the Facility Property for each year shown. The Additional Facility Assessment will also include costs related to the 90 days of operating reserve apportioned to the Facility Property as well as any Direct Supplemental Services apportioned to the Facility Property which will be described in Exhibit D and will be updated each year. 4.4 The projected costs for the Annual Related Development Public are $496,548 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 a portion of the Assessments the City has levied or expects to levy against the Waterfront Property and Related Development Property for each year shown. The Assessments levied against the Waterfront Property and Related Development Property will also include costs related to the 90 days of operating reserve apportioned to the Waterfront Property and Related Development Property as well as any Direct Supplemental Services apportioned to the Waterfront Property and Related Development Property which will be described in Exhibit D and will be updated each year. 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 71 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 9 1775.016\874945.7 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 2024-25 Public Improvements for the 2024-25 attached as Exhibit B and the Special Benefits Report attached as Exhibit D, the City has levied $655,901 in Assessments against the Facility Property as shown on the Assessment Roll attached as Exhibit E which consists of $655,901 for the 2024-25 Additional Facility Public Improvements Costs plus $28,753.46 or approximately 41.66% the 90 days of operating costs (after accounting for the 2023- 24 surplus as described in Section 3.6 above) apportioned to the Facility Property based on the benefit analysis described in Exhibit D. 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 $91,927,934.31has been levied against the Facility Property, consisting of $83,400,000.00 for the 2013 Public Improvements and $8,527,934.31for 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 (which included the Waterfront Property at the time of the deferral) 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 2024-25 Public Improvements attached as Exhibit B and the Special Benefits Report attached as Exhibit D, the City has levied Assessments in the amount of $47,719.48 against the Waterfront Property and $438,858.56 against the Related Development Property for the 2024-25 Related Development Public Improvements as shown on the Assessment Roll attached as Exhibit E. As portions of the Related Development Property that are specially 72 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 10 1775.016\874945.7 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 and (that do not include the 2013 Public Improvements) as described in Section 3.2 above. 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 (as shown on Exhibit E, the "2024-25 Related Development Assessment") are being levied in accordance this SAP Update are described herein. As portions of the Waterfront Property that are specially benefited by the Waterfront Public Improvements are developed, the City intends to continue to levy additional Assessments against the Waterfront Property for WaterfrontPublic Improvements Costs. The costs of such Waterfront Public Improvements and the method of allocation of such costs based on the benefit conferred by such Waterfront Public Improvements for which Assessments (as shown on Exhibit E, the "2024-25 Waterfront Assessment") are being levied in accordance this SAP Update 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 of $5,874,462.53 has been levied for the Annual Related Development Public Improvements (consisting of the Waterfront Public Improvements and 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 Development Public Improvements that are not pledged as security to any series of PID bonds, any Assessment against Related Development 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. 73 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 11 1775.016\874945.7 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 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 74 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 12 1775.016\874945.7 each respective Reimbursement Agreement, each Corporation calculated any anticipated Debt Service Shortfall based on the Bond Debt Service schedules no later than February 1, 2024 and August 1, 2024; and, each Corporation determined there would be no Debt Service Shortfall and no Semi-Annual Installments were required to be paid for calendar year 2024. 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 City 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 Corporations or applicable trustee(s) within two business days. Assessment Revenue from the collection of any Assessment against the Property will be deposited by the City into the PID Operating Account for Annual Assessments. Assessment Revenue from the 2024 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 75 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 13 1775.016\874945.7 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 available to the City Council. The City Council hereby confirms and ratifies the findings 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 76 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 14 1775.016\874945.7 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 2024 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 September 3 rd, 2024 prepared by Executive Business Liaison Jeremie Maurina, a copy of which is attached as Exhibit D (the "2024-25 Special Benefits Report”). The individual line item costs shown in the 2024 Special Benefits Report for each category of improvements are estimates and may vary item-to-item so long as the Public Improvements Cost does not exceed $1,152,451 (which does not include the $284,166 for 90 days of operating costs plus $49,140 Direct Supplemental Services minus the $385,496 2023-24 surplus). 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: 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 $77,842,986 as of December 31, 2022. The 2013 Facility Public Improvement Assessment is allocated as follows among the Project Infrastructure Bonds: 77 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 15 1775.016\874945.7 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 $ 13,203,625 (2) 2021 LGC Tax Refunding Bonds(3)20.60%$17,180,400(3)$ 16,022,715 (2) 2013 Type A Bonds 31.30%$26,104,200 $ 24,308,323 (2) 2013 Type B Bonds 31.30%$26,104,200 $ 24,308,323 (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 $88,253,000 thus reducing the outstanding 2013 Facility Public Improvement Assessment to $77,842,986. 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. [Remainder of page left blank intentionally.] 78 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 16 1775.016\874945.7 2. Assessments related to the Additional Facility Public Improvements: Original Principal Amount Levied Outstanding as of 9/3/2024 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 $0.00 2023 Facility Assessment $691,853.18 $0.00 2024 Facility Assessment $613,682.54 $613,682.54 TOTAL:$8,527,934.31 (1)Levied under Ordinance No. 2015-2136 approved on May 5, 2015. (2)Levied under Ordinance No. 2015-2160 approved on September 15, 2015. 3.Assessments related to the Annual Related Development Public Improvements:1 Original Principal Amount Levied Outstanding as of 9/3/2024 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 $0.00 2023 Related Development Assessment $643,597.28 $0.00 2024 Related Development Assessment $486,578.04 $486,578.04 TOTAL:$5,874,462.53 (1)Levied under Ordinance No. 2015-2136 approved on May 5, 2015. 1 Includes the Assessments levied against the Waterfront Property and the Related Development Property. Excludes the 2013 Related Development Deferred Assessment. 79 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 17 1775.016\874945.7 (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 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 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 80 Exhibit A Legal Description of the Property (439.12 Acres) Exhibit A to The Colony SAP – Legal Description of the Property - Page 1 1775.016\874945.7 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; 81 Exhibit A Legal Description of the Property (439.12 Acres) Exhibit A to The Colony SAP – Legal Description of the Property - Page 2 1775.016\874945.7 THENCE North 59°04'32" East, continuing along said south right-of-way line, a distance of 94.25 feet to a point for corner; 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 non-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; 82 Exhibit A Legal Description of the Property (439.12 Acres) Exhibit A to The Colony SAP – Legal Description of the Property - Page 3 1775.016\874945.7 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; 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. 83 Exhibit A-1 Depiction of the Property Exhibit A-1 to The Colony SAP – Depiction of the Property - Page 1 1775.016\874945.7 84 EXHIBIT B Exhibit B to The Colony SAP – Official Report - Public Improvement Cost - Page 1 1775.016\874945.7 OFFICIAL REPORT 2024 PUBLIC IMPROVEMENTS COST The City of The Colony Public Improvement District No. 1 The Colony, Texas PREPARED BY: Jeremie Maurina, Executive Business Liaison DATED: September 3rd, 2024 85 Exhibit B Exhibit B to The Colony SAP – Official Report - Public Improvements Cost - Page 2 1775.016\874945.7 Official Report - Public Improvements Cost 1 Public Improvements Facility Waterfront Related Development TOTALS Traffic management system $47,256.52 $0 $0 $47,256.52 Enhanced police services $253,994.15 $0 $0 $253,994.15 Enhanced Development Services $0 $0 $0 $0 Street and roadway improvements $342,568.07 $52,322.36 $427,309.58 $822,200 Lake maintenance $12,082.79 $1,845.47 $15,071.73 $29,000 TOTALS $655,901.53 $54,167.83 $442,381.31 $1,152,450.67 1 Costs shown do not include costs related to 90 days of operating costs or costs related to Direct Supplemental Services. See Exhibit D (Special Benefits Reports) for information about these costs. 86 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 1 1775.016\874945.7 Year Principal1 Semi-Annual Collection Costs2 Delinquent Collection Costs3 Annual Administrative Costs4 Estimated Annual Indebtedness 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 2027 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 Parcel 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 87 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 2 1775.016\874945.7 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. Exhibit C-2 Service Plan: Five-Year Projection of Annual Indebtedness Related to Additional Facility Public Improvements1 2024 2025 2026 2027 2028 $619,682 $650,666 $ 683,199 $ 717,359 $ 753,227 1 Costs shown do not include costs related to 90 days of operating costs or costs related to Direct Supplemental Services. See Exhibit D (Special Benefits Reports) for information about these costs. 88 Exhibit C-3 to The Colony SAP - Projection of Annual Indebtedness Related to Annual Related Development Public Improvements Cost - Page 1 1775.016\874945.7 Exhibit C-3 Service Plan: Five-Year Projection of Annual Indebtedness Related to Annual Related Development Public Improvements1 2024 2025 2026 2027 2028 $486,578 $510,907 $536,542 $563,274 $591,439 1 Costs shown do not include costs related to 90 days of operating costs or costs related to Direct Supplemental Services. See Exhibit D (Special Benefits Reports) for information about these costs. 89 Exhibit C-4 Exhibit C-4 to The Colony SAP – Form of Notice Required by Texas Property Code Section 5.014 - Page 1 1775.016\874945.7 FORM OF NOTICE REQUIRED BY TEXAS PROPERTY CODE SECTION 5.014 Effective September 1, 2021, Texas Property Code §5.014 requires a seller of any real property located in a public improvement district to give notice TWICE to the purchaser of the purchaser's obligation to pay the PID assessment in the form required under Texas Property Code §5.014, as amended. Section 5.0141 of the Texas Property Code requires the "First Notice" below to be given to a prospective purchaser BEFORE the execution of a binding contract of purchase and sale, either separately or as an addendum or paragraph of a purchase contract. AT CLOSING, Section 5.0143 of the Texas Property Code requires a separate copy of the "Second Notice" below, with current information, to be executed by the seller and purchase, acknowledged and recorded in the deed records of the county in which the property is located. FIRST NOTICE: NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENTS TO THE CITY OF THE COLONY, TEXAS CONCERNING THE PROPERTY AT: [INSERT STREET ADDRESS] As the purchaser of the real property described above, you are obligated to pay assessments to the City of The Colony, Texas for the costs of a portion of a public improvement or services project (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 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. 90 Exhibit C-4 Exhibit C-4 to The Colony SAP – Form of Notice Required by Texas Property Code Section 5.014 - Page 2 1775.016\874945.7 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: Date: [PURCHASER] By: Name: Date: The undersigned seller executes this notice pursuant to Texas Property Code Section 5.014(a-1), as amended, before the effective date of a binding contract for purchase of the real property at the address described above. [SELLER] By: Name: Date: 91 Exhibit C-4 Exhibit C-4 to The Colony SAP – Form of Notice Required by Texas Property Code Section 5.014 - Page 3 1775.016\874945.7 SECOND NOTICE AFTER RECORDING RETURN TO: [INSERT SELLER NAME AND ADDRESS] NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENTS TO THE CITY OF THE COLONY, TEXAS CONCERNING THE PROPERTY AT: [INSERT STREET ADDRESS] As the purchaser of the real property described above, you are obligated to pay assessments to the City of The Colony, Texas for the costs of a portion of a public improvement or services project (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 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. [SIGNATURE PAGES FOLLOW] 92 Exhibit C-4 Exhibit C-4 to The Colony SAP – Form of Notice Required by Texas Property Code Section 5.014 - Page 4 1775.016\874945.7 IN WITNESS WHEREOF, the undersigned parties have executed this notice at the closing of the purchase of the real property at the address described above and for the purposes stated therein. [PURCHASER] By: Name: Date: STATE OF TEXAS § § COUNTY OF DENTON § This instrument 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. Given under my hand and seal of office on this _________________, 20____. __________________________________________ Notary Public, State of Texas [SEAL] [PURCHASER] By: Name: Date: STATE OF TEXAS § § COUNTY OF DENTON § This instrument 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. Given under my hand and seal of office on this _________________, 20____. __________________________________________ Notary Public, State of Texas [SEAL] 93 Exhibit C-4 Exhibit C-4 to The Colony SAP – Form of Notice Required by Texas Property Code Section 5.014 - Page 5 1775.016\874945.7 The undersigned seller acknowledges providing a separate copy of the notice required by Section 5.014 of the Texas Property Code including the current information required by Section 5.0143, Texas Property Code, as amended, at the closing of the purchase of the real property at the address above. [SELLER] By: Name: Date: STATE OF TEXAS § § COUNTY OF DENTON § This instrument 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. Given under my hand and seal of office on this _________________, 20____. __________________________________________ Notary Public, State of Texas [SEAL] 94 Exhibit D to The Colony SAP – Facility Public Improvements Cost Special Benefit Analysis - Page 1 1775.016\874945.7 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: September 3rd, 2024 95 Exhibit D to The Colony SAP – Facility Public Improvements Cost Special Benefit Analysis - Page 2 1775.016\874945.7 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 (100%) of the Public Improvements for the traffic management system/control equipment and one hundred percent (100%) 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" (now defined as "Direct Supplemental Services") were identified that provided specific benefits to several individual parcels. Due to the nature of these supplemental 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 $49,140 for the 2024-25 assessment. The costs related to the Direct Supplemental Services are apportioned to the property that it benefits and levied to the benefited property’s tax ID. A detailed use report of these Direct Supplemental Services is available upon request. Additionally, the City retains a reserve of an estimated 90 days of operating costs calculated based on the annual budget for the Public Improvements. The 90 days of operating costs are apportioned to the Facility Property, waterfront Property and Related Development Property based on the percentages described below. Table D-1 below shows the special benefits analysis. The costs for the traffic management system and enhanced police services shown below are allocated 100% to the Facility Property. The costs for 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 41.66 percent (107.47 Facility Property/257.939495 total acres); the Waterfront Property is apportioned approximately 6.36 percent (16.421 Waterfront Property/257.939495 total acres); and the Related Development Property is apportioned approximately 51.97 percent (134.054995 Related Development Property/257.939495 total acres). [Remainder of page left blank intentionally.] 96 Exhibit D to The Colony SAP – Facility Public Improvements Cost Special Benefit Analysis - Page 1 1775.016\874945.7 2023-24 Public Improvement Costs Description of Public Improvements Total Estimated Cost Cost Allocated to Facility Property Cost Allocated to Waterfront Property Cost Allocated to Related Development Property Traffic management system $47,256.52 $47,256.52 $0 $0 Enhanced police services $253,994.15 $253,994.15 $0 $0 Enhanced development services $0 $0 $0 $0 Street and roadway improvement $822,200 $342,568.07 $52,322.36 $427,309.58 Lake maintenance $29,000 $12,082.79 $1,845.47 $15,071.73 PUBLIC IMPROVEMENT TOTALS $1,152,450.67 $655,901.53 $54,167.83 $442,381.31 90 Days Operating Cost Reserve $284,165.92 $118,397.19 $18,083.47 $147,685.26 Annual Direct Supplemental Services Costs $49,140 0 0 $49,140 TOTALS 1,485,756.59 $774,298.72 $72,251.30 $639,206.57 97 Exhibit D to The Colony SAP – Facility Public Improvements Cost Special Benefit Analysis - Page 2 1775.016\874945.7 2023-24 Public Improvement Costs Benefit Allocation Public Improvements TOTALS Special Benefit to Facility Property Special Benefit to Waterfront Property Special Benefit to Related Development Property Traffic management system $47,256.52 100%0%0% Enhanced police services $253,994.15 100%0 0% Enhanced development services $0 41.66%6.36%51.97% Street and roadway improvements $822,200.00 41.66%6.36%51.97% Lake maintenance $29,000.00 41.66%6.36%51.97% TOTALS $1,152,450.67 90 Days Operating Cost Reserve $284,166 41.66%6.36%51.97% Annual Direct Supplemental Services Costs $49,140 100% TOTALS 1,485,756.59 98 Exhibit E Assessment Roll Exhibit E to The Colony SAP – Assessment Roll - Page 1 1775.016\874945.7 1. Outstanding 2013 Facility Public Improvement Assessment levied against Facility Property consisting of Tax Parcels No. 657618 and 657619 is $77,845.63. 2. Assessment Roll for Additional Facility Public Improvements, Waterfront Public Improvements and Related Development Public Improvements as levied by the 2024 Assessment Ordinance: Tax Parcel Assessment Facility Property ($613,682.54) #657618 – 81.99 acres ~76.29%$468,184.90 #657619 – 25.48 acres ~23.71%$145,497.64 Waterfront Property ($47,719.48) #957987 – 13.774 acres~83.91%$40,043.14 #704832 – 0.675 acres~4.11%$1,962.33 #957988 - .506 acres ~3.08%$1,471.02 #957989 – 0.2976 acres ~1.81%$865.17 #957990 – 0.2717 acres ~ 1.66%$789.87 #957991 – 0.4838 acres ~ 2.95%$1,406.48 #957992 – 0.4064 acres ~ 2.48%$1,181.47 Related Development Property ($438,858.56) #692390 – 2.015 acres ~ 1.50%$5,857.92 #692391 – 2.105 acres ~ 1.57%$6,119.56 #653843 – 2.944 acres ~ 2.20%$8,558.66 #653844 – 2.683 acres ~ 2.00%$7,799.90 #674231 – 3.386 acres ~ 2.53%$9843.62 #692387 – 1.903 acres ~ 1.42%$5532.31 #692388 – 0.301 acres ~ 0.22%$875.05 #692379 – 2.931 acres ~2.19%$8,520.87 #692380 – 0.204 acres ~ 0.15%$593.06 #732382 – 8.551 acres ~ 6.38%$25,129.08 #748393 – 79.089 acres ~ 59.00%$245,224.95 #753491 – 5.839 acres ~ 4.36%$16,974.54 #753492 – 1.574 acres ~ 1.17%$4,575.16 #674218-3.645 acres ~2.72%$19,956.58 99 Exhibit E Assessment Roll Exhibit E to The Colony SAP – Assessment Roll - Page 2 1775.016\874945.7 #692389-1.925 acres ~1.44%$5,596.27 #1004631- 1.029 acres ~.77%$2,991.46 #1003642- 3.581 acres ~2.67%$15,540.52 #1015683- 10.35 acres ~7.72%$49,169.05 100 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 1 1775.016\874945.7 101 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 2 1775.016\874945.7 102 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 3 1775.016\874945.7 103 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 4 1775.016\874945.7 104 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 5 1775.016\874945.7 105 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 6 1775.016\874945.7 106 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 7 1775.016\874945.7 107 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 8 1775.016\874945.7 108 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 9 1775.016\874945.7 109 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 10 1775.016\874945.7 110 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 11 1775.016\874945.7 111 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 12 1775.016\874945.7 112 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 13 1775.016\874945.7 113 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 14 1775.016\874945.7 20545 114 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 1 1775.016\874945.7 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. 115 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 2 1775.016\874945.7 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 “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. 116 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 3 1775.016\874945.7 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 117 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 4 1775.016\874945.7 September 19, 2017 (continued) Facility Property for costs of Additional Facility Public Improvements (the "2017 Facility 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"). 118 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 5 1775.016\874945.7 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 $366,446.95amount is referred to as the "2021Related Development Assessment"). The 2021 Assessment Ordinance was recorded as Document No. 168472 on September 14th, 2021 in the Real Property Records of Denton County. 119 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 6 1775.016\874945.7 August 16th, 2022 City Council approved Resolution No. 2022-054 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. October 18th, 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. 2022-2491 (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"). The 2022 Assessment Ordinance was recorded as Document No. 149037 on October 21 st, 2022 in the Real Property Records of Denton County. August 15th, 2023 City Council approved Resolution No. 2023-057 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2023-24 Annual Service and Assessment Plan, dated August 15th, 2023, including proposed assessment roll for the District, and calling a public hearing ("2023 Assessment Public Hearing") for September 5th, 2023 to consider an ordinance levying assessments in the aggregate amount of $1,335,447 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. September 19th, 2023 After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2023 Assessment Public Hearing. After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2023-2535 (the "2023 Assessment Ordinance") which approved the 2023 Annual Service Plan Update and levied Assessments in the aggregate amount of $1,335,447 consisting of: (i) $691,853.18 against the Facility Property for costs of Additional Facility Public Improvements (the "2023 Facility Assessment"), (ii) $61,601.36 for Waterfront Public Improvement Costs (as shown in Exhibit B of the 2023Assessment Ordinance) and $581,992.92for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively,the aggregate $643,594.28amount is referred to as the "2023Related Development Assessment"). The 2023 Assessment Ordinance was recorded as Document No. 101705 on September 20th, 2023 in the Real Property Records of Denton County. [September 3rd , 2024]City Council approved Resolution No. xxxxxxxx accepting the City of The Colony Public Improvement District No. 1 Preliminary 2024-25 Annual Service and Assessment Plan, dated September 3rd ,2023, including proposed assessment roll for the District, and calling a public hearing ("2024 Assessment Public Hearing") for September 17th, 2024 to consider 120 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 7 1775.016\874945.7 an ordinance levying assessments in the aggregate amount of $1,100,261 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. [September 17th, 2024]After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2024 Assessment Public Hearing. After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. XXXXX (the "2024 Assessment Ordinance") which approved the 2024 Annual Service Plan Update and levied Assessments in the aggregate amount of $1,100,261 consisting of: (i) $613,682.54 against the Facility Property for costs of Additional Facility Public Improvements (the "2024 Facility Assessment"), (ii) $47,719.48 for Waterfront Public Improvement Costs (as shown in Exhibit B of the 2024Assessment Ordinance) and $438,858.56for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $486,578.04amount is referred to as the "2024Related Development Assessment"). The 2024 Assessment Ordinance was recorded as Document No. XXXXXXXon September XXX, 2024in the Real Property Records of Denton County. 121 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2024 -_______ 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, SEPTEMBER 17, 2024, 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 2024-2025; 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, September 3, 2024, the City Council proposes to accept the City of The Colony Public Improvement District No. 1, Preliminary 2024-2025 Annual Service and Assessment Plan, dated September 3, 2024, 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 2024-2025 Annual SAP”), which Preliminary 2024-2025 Annual SAP is attached hereto as Exhibit A; and WHEREAS, the City Council proposes a public hearing for Tuesday, September 17, 2024, to consider an ordinance levying assessments against the Property to pay for the public improvements identified in the Preliminary 2024-2025Annual SAP that will confer a special benefit on theProperty 122 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 2024-2025 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, September 17, 2024,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 $1,100,260.58 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 THE 3rd DAY OF SEPTEMBER, 2024. Richard Boyer, Mayor 123 ATTEST: Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: Jeffrey L. Moore, City Attorney 124 Exhibit A City of The Colony Public Improvement District No. 1, Preliminary 2024-2025 Annual Service and Assessment Plan 125 Agenda Item No:5.4 CITY COUNCIL Agenda Item Report Meeting Date: September 3, 2024 Submitted by: Latonjia Williams Submitting Department: Finance Item Type: Discussion Agenda Section: Subject: Conduct the first of two public hearings, discuss and consider the City of The Colony Fiscal Year Budget beginning October 1, 2024 through September 30, 2025; providing for intra and inter departmental fund transfers; providing that expenditures for said Fiscal Year to be made in accordance with said budget. (Miller/L. Williams) Suggested Action: Attachments: ProposedBudget 09.03.24.pdf 126 Proposed Budget 2024/2025 September 3, 2024 127 Notice of 2024 Tax Year Proposed Tax Rate The governing body of the City of The Colony has proposed a tax rate of $.6350 per $100 valuation for adoption. 128 TABLE OF CONTENTS City Manager’s Message ..................................................................................... 1 General Fund ....................................................................................................... 4 Parks Fund .......................................................................................................... 7 Utility Fund ........................................................................................................... 8 General Debt Service .......................................................................................... 9 Utility Tax Supported Debt ................................................................................. 10 Economic Development Corporation ................................................................. 11 Community Development Corporation ............................................................... 12 TIRZ ONE PID ................................................................................................... 13 Court Security Fund ............................................................................................ 14 Court Technology Fund ...................................................................................... 15 Juvenile Case Manager Fund ............................................................................. 16 Commercial Vehicle Fund .................................................................................. 17 Court Time Payment Fund ................................................................................. 18 Storm Water Utility Fund ..................................................................................... 19 Water/Sewer Impact Fees Fund ........................................................................ 20 Hotel/Motel Tax Fund .......................................................................................... 21 Lake Parks Fund ................................................................................................. 22 Special Events Fund .......................................................................................... 23 Citizen Donation Fund ........................................................................................ 24 Child Safety Fund .............................................................................................. 25 Keep the Colony Beautiful Fund ........................................................................ 26 SLFRF (State and Local Fiscal Recovery Fund)………………………………….. 27 Park Improvements Fund……………………………………………………………..28 Capital Outlay and Comprehensive Improvement Plan (CIP) Summary ............. 29 Debt Management Policies ................................................................................. 34 Financial Management Policies .......................................................................... 50 Investment Policy ............................................................................................... 64 129 Letter to Mayor and Council The Honorable Mayor and City Council, In accordance with Civil Statues of Texas and the City Charter, the annual budget, for the fiscal year October 1, 2024 through September 30, 2025, is presented for your consideration. The Budget is an important policy document because it presents in financial terms the overall plan to accomplish the City’s program of services during the upcoming fiscal year. 2024-2025 budget highlights: Ad Valorem Taxes are the City’s major revenue source. Total current Ad Valorem Taxes budgeted this year are approximately $46 million which is a 3% increase from the prior year. Approximately $207 million of the increase in tax base came from new construction equating to approximately $1.32 million in increased revenue. Of the $46 million in property taxes budgeted, approximately $34.8 million is in the General Fund and the remaining $11.1 million in General Fund Debt Service. Sales Tax receipts budgeted at $23.5 million, is an increase of $807k or 3.5% above the prior year’s budget. Franchise fees budgeted at $3.3 million, increased $525k or 19% in comparison to prior year. This budget includes about $48.5 million in proposed supplemental requests and capital projects. Projects included are $15.96 million in street, alleyway, drainage, and sidewalk reconstruction. $15.15 million in facility upgrades, $6.19 million vehicle/heavy equipment replacements, $8.76 million in Water/Wastewater with ($5.5 million) of outside funding from ARPA, and $2.45 million for Parks/Lake Parks/CDC. Also included in this budget and supported by operating revenues are 19 employee additions costing $1.3 million. Included in the position additions are Division Chief – Fire and Rescue Training, Registered Sanitarian, Assistant Building Official, Facilities (7) – Janitors, Maintenance Worker, Supervisor, Fleet (2) Techs, Human Resources Assistant, GIS Analyst P/T to F/T, Librarian, P/T Librarian, (2) Senior Center Rec Leaders and P/T Rental Specialist. The budget also includes blended COLA raises of 4%, costing an estimated $1.6 million. Both employee additions and raises are supported by operating revenues. Ending Fund balance in the General Fund is maintained at 80 operating days in reserves. 60 operating days are maintained in Utility and Parks Funds. Economic incentives have been budgeted in the Economic Development (Type A) Fund to promote new enterprises and to retain existing business. To assure a quality community, cultural and leisure activities, and park improvements, funding has been provided in Special Events, Lake Parks, and CDC (Type B) budgets. 1 130 The total adopted operating budget is $169,059,642, a 17.5% increase from the 23-24 total operating budget. Economic Development The Nebraska Furniture Mart Tax Increment Reinvestment Zone (TIRZ) was established in November of 2011 for a 433-acre $1.5 billion Grandscape development. The Nebraska Furniture Mart store, the anchor store of the development, opened in early March 2015. In June 2020, Scheels All Sports opened the largest sporting goods store in the world offering 85 specialty shops and provided our second anchor store for the development. Numerous restaurants and hotels have also located in the Zone. Fireside Surf, PopStroke, 151 Coffee, Fritz’s Adventures, Rome, World of Beer, Worldsprings and Simply Unwine and COSM opened this past year. North of SH 121 in The Colony, Live Oak Logistics Business Park is nearing completion and currently leasing space. This development is approximately one-million square feet of industrial and office space. In addition, you will find RifleGear, Texas Road House and Bubba’s 33 in this same location. Further down 121, also on the North side and across from the Grandscape development, is Rooms to Go, Chair King and many other restaurants and retailers as well as Topgolf, numerous hotels, medical office buildings and shopping centers. Business activity in The Colony has also brought numerous jobs for our residents. The Nebraska Furniture Mart store alone employs around 1,800 people. The widening of FM 423 (Main Street) from a 4 lane to a 6 lane and 8 lane divided street was completed in late 2017 and has significantly increased redevelopment along this vital corridor. The Tribute, the only remaining sizeable residential development in The Colony, continues to increase the number of buildable lots. Housing permits have remained strong and are expected to do so for the next several years. Quality of Life The City values quality of life for all its residents. The City’s continued funding of Library and Parks and Recreation services help to ensure quality programming remains available to the community. Also of high value is funding for beautification projects to continue to improve the overall aesthetic standard of landscaped areas. The City remains committed to the upkeep and preservation of trees and recently celebrated its 16th anniversary as a “Tree City USA.” Additionally, the City strives to provide high caliber events that showcase a commitment to family friendly activities such as Liberty by the Lake, the American Heroes Festival, and The Colony Summer Kickoff. Looking ahead, the focus will be on further improvements to public spaces, including development of new pickleball courts, Library expansion, and relocation of recreation facilities into a multi-generational center. 2 131 Future The City Council and management team want to keep the items below on its radar. •Continually reduce the property tax rate. •Maintain street, alleyway, and sidewalk improvement programs. •Facility growth and physical reallocation of departments. •Adding staff for internal and external service departments to accommodate exponential growth while continuing to serve citizens’ needs. •Preparing for the next steps of the Water and Wastewater infrastructure expansions. •Facilitate funding partnerships between CDC and Parks. Strategic Plans The budget process provides a road map for short-term and long-term needs and aids in the allocation of limited resources to prioritized services and needs. Each year a Capital Improvement Program is developed which helps gauge future funding priorities and is the foundation on which annual budgets are built. Capital needs are projected for each of the five following years to identify service needs and financing available. Staff helps Council with the challenge of prioritizing and providing efficient and effective services to the community with current and future available funds. As a combined effort, the City Manager’s Office, Finance Director, and all departments monitor revenues and expenditures throughout the year. Appropriate actions are taken to control expenditures, and to make adjustments when revenues fall short of expectations. Conclusions The 2024-2025 budget has been prepared with the assistance of devoted and dedicated employees who stand ready to accomplish the goals outlined and adopted by the City Council. Under the prudent leadership of the City Council, we commit our best efforts to ensure that the needs of our citizens are met and exceeded! Troy Powell, City Manager 3 132 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget Current Property Taxes 29,959,076 37,228,090 37,502,544 34,829,684 Rendition Penalty Revenue 9,985 28,424 5,000 16,000 Ag. Roll Back Taxes - 170431 - - Delinquent Property Tax 105,371 117,117 50,000 100,000 Penalties & Interest 81,191 126,143 50,000 100,000 Total 30,155,623 37,670,205 37,607,544 35,045,684 Sales Taxes 10,653,520 10,968,877 12,000,000 23,549,328 Mixed Beverage Tax 773,049 843,265 750,000 750,000 Total 11,426,569 11,812,142 12,750,000 24,299,328 Electric 1,727,856 1,747,182 1,600,000 1,800,000 Natural Gas 267,560 328,868 250,000 400,000 Telephone 151,257 107,321 150,000 150,000 PEG Fees 69,549 45,875 75,000 150,000 Video 167,914 149,953 250,000 250,000 Sanitation-Residential 216,671 246,458 200,000 250,000 Sanitation-Commercial 272,612 286,061 250,000 300,000 Total 2,873,417 2,911,718 2,775,000 3,300,000 TOTAL TAXES 44,455,610 52,394,065 53,132,544 62,645,012 Building Permits-New Homes 727,918 283,296 800,000 850,000 Building Permits-Other 724,085 674,555 750,000 750,000 Commercial Permits 635,639 263,159 700,000 500,000 Certificates Of Occupancy 5,450 4,425 7,500 7,500 Zoning Fees 7,715 14,918 10,000 10,000 Fire Fees 33,430 36,536 20,000 30,000 Solicitors Permits 1,354 876 2,000 2,000 Health Permits 135,920 136,722 200,000 200,000 Platting Fees 15,138 3,246 20,000 20,000 Alcohol Permits 23,095 23,900 25,000 25,000 Code Enforcement Fees 16,841 24,199 25,000 25,000 Eng Inspection Overtime Fee 7,440 10,560 2,500 8,000 Inspection Fees 429,437 476,831 500,000 500,000 Grading Permit 8,311 1,960 1,000 1,000 TOTAL LICENSES & PERMITS 2,771,773 1,955,183 3,063,000 2,928,500 Ambulance Calls 761,886 901,887 800,000 900,000 Ambulance Subscription Revenue 25,266 25,357 25,000 25,000 Service Liens 16,612 18,113 25,000 25,000 Denton County Engine Response - - 1,500 1,500 County Ambulance Funds - 21,344 22,000 22,000 County Fire Funds - 10,000 10,000 10,000 Total 803,764 976,702 883,500 983,500 County Library Funds 46,402 36,670 39,000 55,000 Total 46,402 36,670 39,000 55,000 TOTAL CHARGES FOR SERVICES 850,166 1,023,104 922,500 1,038,500 CHARGES FOR SERVICES TAXES Ad Valorem Taxes City Sales Taxes Fire & Ambulance Library Revenue & Expenditure Projections Fiscal Year 2024-2025 Franchise Taxes LICENSES & PERMITS GENERAL FUND 4 133 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget Revenue & Expenditure Projections Fiscal Year 2024-2025 GENERAL FUND Municipal Court Fines 1,081,908 835,929 1,100,000 1,100,000 Library Fees 5,947 6,790 10,000 10,000 Animal Control Fees 23,851 19,970 30,000 30,000 TOTAL FINES AND FORFEITURES 1,111,706 862,689 1,140,000 1,140,000 Interest Income 348,704 3,339,920 25,000 2,200,000 TOTAL INVESTMENT INCOME 348,704 3,339,920 25,000 2,200,000 Auction Proceeds 23,610 5,650 10,000 10,000 Tower Rental Fees 53,218 3,714 350,000 350,000 Insurance Reimbursement - - 1,000 1,000 LEISD SRO Reimbursement 142,496 275,586 95,000 160,000 LISD SRO Reimbursement 263,769 443,784 256,000 430,000 Miscellaneous 94,374 94,882 65,000 75,000 Misc Revenue - Grants 5,105 120,949 - - Police Reports 5,602 4,671 4,000 5,000 Alarm Fees 30,941 32,133 30,000 30,000 Lease Interest Revenue 37,469 44,268 - - Rent Income 56,530 - - - Other Financing Sources - Lease 97,920 - - - Lease Income 263,982 263,982 - - TOTAL OTHER REVENUES 1,075,016 1,289,619 811,000 1,061,000 TOTAL REVENUES 50,612,974 60,864,580 59,094,044 71,013,012 Transfer - Storm Water Utility 50,000 50,000 50,000 50,000 Transfer In-GDSF - - - 1,600,000 Transfer - Child Safety Fund 10,000 10,000 10,000 10,000 153,356 155,031 151,031 152,531 244,432 244,718 244,503 244,682 49,671 50,233 49,985 - 131,288 881,000 - - Transfers In - Parking Lot (CDC)65,265 123,000 - - Transfers In - CARES Fund (2,440,350) - - - Transfer In - CDC - - - - Transfers in - KTKB - - - - TOTAL TRANSFERS (1,736,338) 1,513,982 505,519 2,057,213 48,876,636 62,378,562 59,599,563 73,070,225 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 OTHER REVENUES TRANSFER IN TOTAL REVENUES & TRANSFERS INVESTMENT INCOME 5 134 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget Revenue & Expenditure Projections Fiscal Year 2024-2025 GENERAL FUND Non-Departmental 8,599,777 9,574,724 11,694,579 35,716,401 General Administration 1,362,011 1,791,881 2,490,832 2,728,000 City Council 43,253 73,708 147,420 287,112 Community Image 639,704 599,156 621,940 753,093 City Secretary 386,859 516,141 511,352 586,996 Human Resources 848,729 768,140 1,013,392 993,349 Finance 1,369,485 1,308,477 1,393,716 1,676,638 Information Technology 1,044,043 1,048,094 1,185,886 1,479,602 Planning & Development 3,886 300,751 316,875 373,575 Municipal Court 475,779 521,073 522,040 573,695 Public Safety Dispatch 1,595,965 1,614,765 1,976,081 2,180,381 Fire 12,161,032 13,715,451 13,959,064 15,305,089 Police 12,379,860 14,084,554 14,673,747 16,111,962 Animal Control 627,041 698,224 660,483 771,890 Library 1,222,303 1,312,510 1,334,172 1,570,158 Engineering 2,245,272 2,080,129 2,235,870 2,438,831 Facilities Maintenance 1,282,198 1,398,871 1,360,008 1,347,276 Fleet Services 1,371,088 1,436,993 1,348,113 1,633,359 Personnel Additions/Benefits/Equipment - - 600,000 978,387 Salary Increases/Cert - - 2,600,000 59,603 Non-Capital items - - 2,500,000 - TOTAL EXPENDITURES 47,658,286 52,843,641 63,145,570 87,565,397 Transfer - CVB 115,000 400,000 800,000 0 Transfer - Special Events 345,000 400,000 444,000 0 Transfer - KTB 10,000 10,000 10,000 10,000 Transfer - EDC - 17,605 100,000 - Transfer - Storm Water - 1,102,000 - - Transfer - Utility - - - - Transfer - Parks Fund 2,946,823 3,201,823 2,810,000 2,510,000 Transfer - Tax Supported Debt Service - - 4,300,000 Transfer - GDS - - - Transfer - Trinity North - - - - Transfer - G.F. Special Cap - - - - TOTAL TRANSFER OUT 3,416,823 5,131,428 8,464,000 2,520,000 51,075,109 57,975,069 71,609,570 90,085,397 OH COST ALLOCATION (6,691,461) (5,661,461) (5,661,461) (5,711,461) 21,507,222 26,000,210 36,065,164 29,716,619 4,492,988 10,064,955 (6,348,546) (11,303,711) 26,000,210 36,065,164 29,716,619 18,412,907 26,000,210 36,065,164 29,716,619 18,412,907 214 252 164 80 EXCESS/(DEFICIENCY) ENDING FUND BALANCE UNRESERVED FUND BALANCE Working Days in Fund Balance BEGINNING FUND BALANCE EXPENDITURES TRANSFER OUT TOTAL EXPENDITURES & TRANSFERS 6 135 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget Recreation Program Revenue 246,142 299,242 225,000 275,000 Athletic Program Revenue 102,469 87,645 65,000 85,000 Athletic & Recreation Facility Revenue 308,547 274,748 200,000 175,400 Pass Revenue 26,346 26,038 20,000 20,000 Total 683,505 687,674 510,000 555,400 Swimming Lessons 206,994 224,763 180,000 190,000 Entrance Fees 28,458 40,383 27,000 30,000 Concession Sales 1,829 1,318 1,000 1,100 Private Party Fees 88,407 84,728 90,000 85,000 Total 325,688 351,192 298,000 306,100 Rental Revenue 18,970 20,389 10,000 15,000 Program Revenue 1,719 1,571 2,000 2,000 Travel Commissions 12,867 - - Trip Revenue - 8,236 8,000 10,000 Membership Fees 8,392 14,027 7,500 10,000 Total 41,948 44,223 27,500 37,000 TOTAL CHARGES FOR SERVICES 1,051,141 1,083,088 835,500 898,500 Hawaiian Water 217,723 534,706 150,000 150,000 Athletic Club - 34,815 - 75,000 Miscellaneous 7,064 5,622 6,500 Interest Income 25,628 202,036 1,000 1,000 TOTAL OTHER INCOME 250,415 777,179 157,500 226,000 TOTAL REVENUES 1,301,556 1,860,267 993,000 1,124,500 Transfer - General Fund 2,946,823 3,201,823 2,810,000 2,510,000 Transfer - CDC - 0 - 850,000 Transfer - CDC Five Star Maintenance 165,000 165,000 - 0 Transfer - CDC Fund Personnel 134,845 134,845 134,845 0 Transfer - Lake Parks Fund 35,000 35,000 50,000 50,000 TOTAL TRANSFERS 3,281,668 3,536,668 2,994,845 3,410,000 4,583,224 5,396,935 3,987,845 4,534,500 Non-Departmental 48,564 - Parks & Recreation 2,558,287 2,560,237 2,909,278 3,451,124 Aquatic Park 548,616 480,189 499,840 561,687 Community Center 294,733 272,451 271,919 303,017 Capital - - - - TOTAL EXPENDITURES 3,450,200 3,312,878 3,681,037 4,315,828 OH COST 1,014,398 1,014,398 1,014,398 1,014,398 1,184,563 1,303,189 2,372,848 1,665,258 118,626 1,069,659 (707,590) (795,726) 1,303,189 2,372,848 1,665,258 869,532 107 200 129 60 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 PARKS FUND Revenue & Expenditure Projections Fiscal Year 2024-2025 7 136 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget CHARGES FOR SERVICES 15,875,716 17,176,512 16,000,000 17,500,000 8,289,562 8,816,615 9,000,441 9,500,000 5,940 4,880 8,000 8,000 486,114 598,743 425,000 475,000 267,425 125,500 180,000 250,000 128,754 910,400 18,000 900,000 85,425 81,699 125,000 125,000 Solid Waste / Recycling 80,690 91,547 - - Recycling Education Contribution 36,000 36,000 36,000 36,000 25,255,627 27,841,897 25,792,441 28,794,000 TRANSFERS IN 100,000 100,000 100,000 100,000 - - - - - - - Transfer - Capital Projects - Water meters - - - - - - - - 100,000 100,000 100,000 100,000 TOTAL REVENUES & TRANSFERS 25,355,627 27,941,897 25,892,441 28,894,000 EXPENDITURES 1,508,530 1,586,185 1,716,329 2,060,038 Environmental 112,260 110,890 138,500 146,500 Storm Water - Engineering 21,764 9,050 63,503 63,500 Storm Water - Streets & Drainage 149,381 115,229 193,377 219,854 2,723,809 2,742,457 4,043,283 3,910,602 1,064,141 1,036,801 1,342,594 1,612,099 4,789,875 5,409,155 4,698,074 4,732,526 2,125,639 2,255,176 1,773,376 2,391,752 85,693 108,223 327,000 275,500 Capital - - - - 12,581,092 13,373,167 14,296,036 15,412,371 TRANSFERS OUT - - - - 6,000,000 6,000,000 8,550,000 8,550,000 - - - - - - - TOTAL TRANSFERS OUT 6,000,000 6,000,000 8,550,000 8,550,000 18,581,092 19,373,167 22,846,036 23,962,371 OH COST 5,498,630 4,448,630 4,448,630 4,498,630 4,527,733 5,803,638 9,923,738 8,521,513 1,275,905 4,120,099 (1,402,225) 432,999 5,803,638 - 9,923,738 8,521,513 8,954,512 88 152 114 115 TOTAL REVENUES Water Service Wastewater Service UTILITY FUND Revenue & Expenditure Projections Fiscal Year 2024-2025 Reconnect Fees Penalties Tap Connection Fees Interest Income Miscellaneous Waste Water Customer Service - Administration Streets & Drainage TOTAL EXPENDITURES Transfer - Storm Water Utility Fund TOTAL TRANSFERS IN Non-Departmental Water Production Water Distribution Transfer - CIP Transfer - Capital Projects - Streets Transfer - General Fund 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 8 137 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget Revenues 9,485,693 7,073,578 7,444,325 11,133,040 34,719 28,384 25,000 25,000 - 55,216 - 25,735 26,388 25,000 25,000 65,249 557,392 40,000 500,000 Bond Proceeds 12,225,000 - -- Bond Premiums 817,990 - - - - - -- 22,654,385 7,740,958 7,534,325 11,683,040 TRANSFERS IN - - - - - - - TOTAL REVENUES & TRANSFERS 22,654,385 7,740,958 7,534,325 11,683,040 EXPENDITURES Refunding Bonds - 2011/2002 703,456 - - - Refunding Bonds - 2012/2003 &2007 222,825 224,025 - - 153,356 155,031 151,531 152,531 Refunding Bonds - 2013/2004 GF/Utility 371,750 373,700 372,750 - Refunding Bonds - 2014/2006 GF/Utility 268,893 269,361 268,447 268,728 Refunding Bonds - 2015/2005 &2007 GF/Utility 688,398 685,950 688,602 687,242 Refunding Bonds - 2020/2010 &2010A 815,681 811,912 807,012 808,519 Certificates of Obligation - 2014 221,476 221,467 221,502 221,869 Certificates of Obligation - 2016 1,131,913 947,726 948,513 947,726 Certificates of Obligation - 2018 1,085,085 1,085,310 913,860 913,365 Certificates of Obligation - 2019 992,717 991,709 992,329 864,454 Certificates of Obligation - 2020 253,938 253,500 252,813 253,125 Certificates of Obligation - 2021 492,860 491,625 491,738 491,175 Certificates of Obligation - 2022 - 935,530 933,975 934,800 Governmental Capital 10 year note (2)112,165 112,165 112,165 - Equipment Capital Lease 10 year Oshkosh 135,693 135,693 135,693 135,693 Governmental Capital 3 year note (1) 220,279 - - - 250,245 4,157 200,000 4,000 TOTAL EXPENDITURES 8,120,729 7,698,861 7,490,930 6,683,227 Transfer - General Fund - - - 1,600,000 Transfer - CIP 12,780,000 - - - TOTAL EXPENDITURES & TRANSFERS 20,900,729 7,698,861 7,490,930 8,283,227 1,753,656 42,098 43,395 3,399,813 10,070,241 11,823,897 11,865,995 11,909,390 11,823,897 11,865,995 11,909,390 15,309,203 BEGINNING FUND BALANCE ENDING FUND BALANCE Certificates of Obligation - 2013 Fiscal Agent Fees & Other TOTAL TRANSFERS IN TRANSFER OUT EXCESS (DEFICIENCY) Transfers In - General Fund GENERAL DEBT SERVICE Revenue & Expenditure Projections Fiscal Year 2024-2025 Ag. Roll Back Taxes TOTAL REVENUES Current Property Taxes Delinquent Property Taxes Penalty & Interest Investment Income Misc Income 9 138 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget CHARGES FOR SERVICES 1,084 6,346 - - -- 1,040,825 535,986 -400,000 --- Fees- SRF Revenue 482,372 488,591 450,000 450,000 Gain on Refunding - - - - 133,296 272,803 - 200,000 1,657,577 1,303,725 450,000 1,050,000 TRANSFERS IN Transfers In - EDC 4A 305,759 306,118 305,849 306,073 Water/Sewer Impact Fees 750,000 750,000 750,000 750,000 SLFRF Fund Transfer - - 11,032,945 Revenue Supported Debt Balance Transfer - - - - Transfers In - Utility Fund 6,000,000 6,000,000 8,550,000 8,550,000 Transfer In - General Fund 4,300,000 Premium - - - 7,055,759 7,056,118 24,938,794 9,606,073 TOTAL REVENUES & TRANSFERS 8,713,336 8,359,843 25,388,794 10,656,073 EXPENDITURES General Obligation Refunding Bonds - 2011 222,144 - - - Revenue Refunding Bonds 2012 (03,07,08)74,275 74,675 - - General Obligation Refunding Bonds - 2013 1,487,000 1,494,800 1,491,000 - General Obligation Refunding Bonds - 2014 1,312,832 1,315,144 1,310,653 1,312,023 General Obligation Refunding Bonds - 2020 266,319 265,088 263,488 263,981 Cetificate of Obligation - 2014 1,360,493 1,360,439 1,360,654 1,362,912 Cetificate of Obligation - 2015 820,450 817,850 817,425 829,125 Cetificate of Obligation - 2015 Refunding 323,952 322,800 324,048 323,408 Cetificate of Obligation - 2016 485,106 406,168 406,506 406,168 Cetificate of Obligation - 2018 120,565 120,590 101,540 101,485 Cetificate of Obligation - 2019 608,439 607,822 608,202 529,827 Cetificate of Obligation - 2020 761,813 760,500 758,438 759,375 Cetificate of Obligation - 2021 54,762 54,625 54,638 54,575 Cetificate of Obligation - 2022 - 623,687 622,650 623,200 Fees/Cost of Issuance 178,392 3,456 20,000 21,500 Transfer - CIP 8,520,000 - TOTAL EXPENDITURES 16,596,542 8,227,644 8,139,242 6,587,579 (7,883,206) 132,199 17,249,552 4,068,494 5,163,648 (2,719,558) (2,587,359) 14,662,193 (2,719,558) (2,587,359) 14,662,193 18,730,687 Current Property Taxes Delinquent Property Taxes UTILITY TAX SUPPORTED DEBT Revenue & Expenditure Projections Fiscal Year 2024-2025 EXCESS (DEFICIENCY) BEGINNING FUND BALANCE ENDING FUND BALANCE Amortization of Premium Penalty & Interest Investment Income TOTAL REVENUES TOTAL TRANSFERS IN TRANSFER OUT 10 139 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget CITY SALES TAXES Gross Sales Tax Revenues 5,326,704 5,483,439 6,000,000 11,774,664 Investment Income 92,091 724,017 50,000 1,012,356 Bond Proceeds - - - - Miscellaneous Revenue 2,163 2,145 - - TOTAL REVENUES 5,420,958 6,209,600 6,050,000 12,787,020 EXPENDITURES Personnel Services 456,714 531,709 540,322 587,001 Contractual Services 34,171 50,676 261,500 297,000 Marketing 270,982 301,681 425,000 425,000 Supplies 14,617 18,328 20,000 24,000 Maintenance 368 1,579 1,500 1,500 Building Roof Maintenance 136,799 118,580 - - Economic Development Incentives 193,604 103,520 3,130,000 7,693,000 Grant Program 3,264 13,302 75,000 500,000 Debt Service - Land 607,968 607,920 607,344 611,152 Capital SUV - 65,000 - - Capital Outlay-Vehicles 121,414 - Captial Outlay - Parking Lot Improvements - - 1,000,000 Capital Outlay-Generator - 15,440 225,000 Capital Outlay-Fiber Loop - 276,295 623,705 - Capital Outlay - Other Equipment - - 40,000 Sales Tax Rebate 214,940 248,657 290,000 7,635,000 TOTAL EXPENDITURES 1,933,427 2,474,101 7,239,371 17,773,653 TRANSFERS OUT Transfer Out - General Fund BPP - - - - Transfer Out - GF Cap Contribution - - - - Transfer Out - GF -(S.Colony Conn-Ph2)153,356 155,031 151,031 152,531 Transfer Out - GDSF - Cascades 244,432 244,718 244,503 244,682 Transfer Out - GDSF 49,671 50,233 49,985 *01 0 Transfer Out - UFDS 305,759 306,118 305,849 306,073 TOTAL TRANSFERS OUT 753,218 - 756,100 751,368 703,286 TOTAL EXPENDITURES 2,686,645 3,230,201 7,990,739 18,476,939 OH COST 71,376 91,380 91,380 91,380 EXCESS (DEFICIENCY) 2,662,937 2,888,019 (2,032,119) (5,781,299) BEGINNING FUND BALANCE 12,312,252 14,975,189 17,863,208 15,831,089 ENDING FUND BALANCE 14,975,189 17,863,208 - 15,831,089 - 10,049,790 *01 ECONOMIC DEVELOPMENT - TYPE A SALES TAXES Revenue & Expenditure Projections Fiscal Year 2024-2025 This is the final payment for this debt series 11 140 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget CITY SALES TAXES 5,326,704 5,483,439 6,000,000 11,774,664 69,569 541,828 50,000 50,000 Miscellaneous 1,200 - 5,397,472 6,025,267 6,050,000 11,824,664 TRANSFERS IN Transfer from General Fund - - Transfer from Capital Projects Fund - - TOTAL TRANSFERS IN - - - - - - TOTAL REVENUES & TRANSFERS 5,397,472 6,025,267 6,050,000 11,824,664 EXPENDITURES-OPERATIONAL 156,672 150,017 185,425 2,915 54,324 51,353 90,000 4,000 2,630 8,436 8,750 5,700 49,903 49,470 57,936 53,590 Sales Tax Rebate 214,940 248,657 241,500 7,186,228 - - - - 478,468 507,932 583,611 7,252,433 TRANSFERS OUT Trnsfr Out - GDSF (Complex Debt)- - - Trnsfr Out - Parks Fd (Five Star Maint.)165,000 165,000 165,000 Trnsfr Out - Parks Fd - 0 0 850,000 Trnsfr Out - GDSF (Hike & Bike Trail)131,288 881,000 *01 - - Trnsfr Out GDSF (Parking Lot)65,265 123,000 *01 Trnsfr Out - Parks Fund (Personnel)134,845 134,845 134,845 Trnsfr Out - Park Improvement - 7,083,340 4,000,000 - 3,500,000 TOTAL TRANSFERS OUT 496,398 - 8,387,185 4,299,845 4,350,000 TOTAL EXPENDITURES & TRANSFERS 974,866 - 8,895,117 4,883,456 11,602,433 OH COST 35,688 35,692 35,692 35,692 4,386,918 (2,905,542) 1,130,852 186,539 6,281,803 10,668,721 7,763,179 8,894,031 10,668,721 7,763,179 8,894,031 9,080,570 *01 This debt was paid off in FY 22/23 Sales Tax Revenues Investment Income COMMUNITY DEVELOPMENT - TYPE B SALES TAXES Revenue & Expenditure Projections Fiscal Year 2024-2025 TOTAL EXPENDITURES EXCESS (DEFICIENCY) BEGINNING FUND BALANCE ENDING FUND BALANCE TOTAL REVENUES Personnel Services Capital Outlay Contractual Services Supplies Maintenance 12 141 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget REVENUES Assessment 902,327 1,304,422 1,335,447 1,335,447 Interest Income 16,553 103,011 - - Misc - - - - TOTAL REVENUES 918,880 1,407,433 1,335,447 1,335,447 EXPENDITURES Personnel Services 703,813 285,166 288,533 301,250 Contractual Services 693,080 750,823 701,000 711,000 Supplies 974 1,147 1,000 1,200 Maintenance & Utility 163,600 76,171 197,000 139,000 Inspections - - - - Capital Outlay - - - - TOTAL EXPENDITURES 1,561,467 1,113,307 1,187,533 1,152,450 ADDED SUPPLEMENTAL SERVICES - - 78,903 (642,586) 294,125 69,011 182,997 1,371,329 728,743 286,290 *01 355,301 728,743 1,022,868 355,301 538,298 *01 Starting with 2023-2024 version of this document, the method in which the ending fund balance is derived for this item is changing to a more dynamic calculation to bring that number in line with the amount detailed in the City of The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update. Prior to FY 23 this calculation was originally calculated as 90/365 day operating balance. Starting in FY 24, the calculation will be based off of a dynamic snapshot of current expenditures at the start of the budget process and real-time forecasting of expenses that will occur between the snapshot and the end of the fiscal year. These Changes are reflected in both the 22/23 and the 23/24 budget columns BEGINNING FUND BALANCE ENDING FUND BALANCE TIRZ ONE PIDRevenue & Expenditure ProjectionsFiscal Year 2024-2025 EXCESS (DEFICIENCY) 13 142 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget REVENUES Court Security Revenue 28,970 22,090 20,000 20,000 Investment Income TOTAL REVENUES 28,970 22,090 20,000 20,000 EXPENDITURES Personnel Services - - - - Contractual Services 600 2,000 - - Supplies - 2,921 4,000 5,000 Maintenance - - - 1,000 Capital Outlay 10,761 - - - TOTAL EXPENDITURES 11,361 4,921 4,000 6,000 17,608 17,169 16,000 14,000 284,408 302,016 319,185 335,185 302,016 319,185 335,185 349,185 BEGINNING FUND BALANCE ENDING FUND BALANCE EXCESS (DEFICIENCY) COURT SECURITYRevenue & Expenditure ProjectionsFiscal Year 2024-2025 14 143 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget REVENUES Court Technology Revenue 23,910 18,124 16,000 16,000 Investment Income - - - - TOTAL REVENUES 23,910 18,124 16,000 16,000 EXPENDITURES Contractual Services - - - - Supplies/ copiers/Telephone - 516 1,000 300 Maintenance - Tyler/Duncan Parking Tech 13,497 - 20,000 15,000 Non-Capital Capital Outlay - - - - Overhead Costs TOTAL EXPENDITURES 13,497 516 21,000 15,300 10,413 17,609 (5,000) 700 35,406 45,819 63,428 58,428 45,819 63,428 58,428 59,128 ENDING FUND BALANCE EXCESS (DEFICIENCY) BEGINNING FUND BALANCE COURT TECHNOLOGYRevenue & Expenditure ProjectionsFiscal Year 2024-2025 15 144 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget REVENUES Juvenile Case Manager Fee 42,407 23,021 40,000 40,000 Investment Income - - TOTAL REVENUES 42,407 23,021 40,000 40,000 EXPENDITURES Personnel Services - - - - TOTAL EXPENDITURES - - - - 42,407 23,021 40,000 40,000 53,474 95,881 118,903 158,903 95,881 118,903 158,903 198,903 ENDING FUND BALANCE JUVENILE CASE MANAGER FUNDRevenue & Expenditure ProjectionsFiscal Year 2024-2025 EXCESS (DEFICIENCY) BEGINNING FUND BALANCE 16 145 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget REVENUES Commercial Vehicle Fee/Weight 9,454 2,059 5,000 5,000 Investment Income TOTAL REVENUES 9,454 2,059 5,000 5,000 EXPENDITURES Personnel Services - 3,054 - 4,200 Contractual Services - 500 300 Supplies 953 262 - 500 Maintenance - - - Capital Outlay - - - TOTAL EXPENDITURES 953 3,316 500 5,000 8,501 (1,257) 4,500 - 4,360 12,861 11,604 16,104 12,861 11,604 16,104 16,104 ENDING FUND BALANCE COMMERCIAL VEHICLE FUNDRevenue & Expenditure ProjectionsFiscal Year 2024-2025 EXCESS (DEFICIENCY) BEGINNING FUND BALANCE 17 146 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget REVENUES Court Time Payment Fee 4,806 6,152 3,000 3,000 Investment Income - - - - Transfer In - General Fund - - - - TOTAL REVENUES 4,806 6,152 3,000 3,000 EXPENDITURES Personnel Services - - - - Contractual Services - - - - Supplies - - - - Maintenance 6,954 - - Capital Outlay - - - - TOTAL EXPENDITURES 6,954 - - - (2,148) 6,152 3,000 3,000 29,113 26,965 33,116 36,116 26,965 33,116 36,116 39,116 ENDING FUND BALANCE COURT TIME PAYMENT FUNDRevenue & Expenditure ProjectionsFiscal Year 2024-2025 EXCESS (DEFICIENCY) BEGINNING FUND BALANCE 18 147 2021-2022 2022-2023 2023-2024 2024-2025 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 FUNDRevenue & Expenditure ProjectionsFiscal Year 2024-2025 EXCESS (DEFICIENCY) BEGINNING FUND BALANCE 19 148 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget REVENUES 1,256,518 1,275,523 1,000,000 1,300,000 Reimbursement Tribute PTNRS - - - - - - 1,256,518 1,275,523 1,000,000 1,300,000 Transfer In - General Fund - 1,102,000 - TOTAL REVENUES & TRANSFERS 1,256,518 2,377,523 1,000,000 1,300,000 EXPENDITURES Contractual Servics - - - - Maintenance 695,313 370,758 - - Capital Outlay 115,350 520,467 1,000,000 - TOTAL EXPENDITURES 810,663 891,226 - 1,000,000 - - TRANSFERS OUT 50,000 50,000 50,000 50,000 - 203,925 - - Projects to be determined - - - 100,000 100,000 100,000 100,000 TOTAL TRANSFERS OUT 150,000 353,925 150,000 150,000 960,663 1,245,151 1,150,000 150,000 295,855 1,132,373 (150,000) 1,150,000 953,416 1,249,271 2,381,644 2,231,644 1,249,271 2,381,644 2,231,644 3,381,644 Storm Water Utility Fees Investment Income STORM WATER UTILITY FUNDRevenue & Expenditure ProjectionsFiscal Year 2024-2025 TOTAL EXPENDITURES & TRANSFERS EXCESS (DEFICIENCY) BEGINNING FUND BALANCE ENDING FUND BALANCE TOTAL REVENUES Transfer - General Fund Transfer - Utility CIP Transfer - Utility Fund 20 149 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget IMPACT FEES Water Impact Fees 718,332 222,501 400,000 400,000 Sewer Impact Fees 344,883 120,734 200,000 200,000 Investment Income - - - - TOTAL REVENUES 1,063,215 343,235 600,000 600,000 EXPENDITURES Water Impact Fee Reimbursement - - - - Sewer Impact Fee Reimbursement 28,434 - 240,000 240,000 Contractual Services - Water Master Plan - - - - TOTAL EXPENDITURES 28,434 - 240,000 240,000 TRANSFERS OUT: Transfer - Capital Project Admin - - - Transfer - Utility Revenue Debt Service 750,000 750,000 750,000 750,000 TOTAL TRANSFERS OUT 750,000 750,000 750,000 750,000 TOTAL EXPENDITURES & TRANSFERS 778,434 750,000 990,000 990,000 EXCESS (DEFICIENCY)284,781 (406,765) (390,000) (390,000) BEGINNING FUND BALANCE 1,074,090 1,358,871 952,106 562,106 ENDING FUND BALANCE 1,358,871 952,106 562,106 172,106 WATER/SEWER IMPACT FEES FUNDRevenue & Expenditure ProjectionsFiscal Year 2024-2025 21 150 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget HOTEL/MOTEL TAXES Taxes 1,937,273 2,356,974 1,200,000 2,010,000 Miscellaneous 1,688 1,095 - - 1,938,961 2,358,069 1,200,000 2,010,000 TRANSFERS IN Transfer from - General Fund 115,000 400,000 800,000 0 TOTAL TRANSFERS IN 115,000 400,000 800,000 - TOTAL REVENUES & TRANSFERS 2,053,961 2,758,069 2,000,000 2,010,000 EXPENDITURES Communications 120,740 129,090 129,674 136,734 10,099 11,132 14,740 15,440 1,384 1,503 4,050 2,650 Maintenance - - 900 500 339,949 340,408 396,327 397,008 Contractual Services 391,610 560,051 689,575 677,595 12,744 8,499 12,000 12,000 Maintenance 5,623 - 24,190 20,173 426,322 314,925 275,000 450,000 6,996 31,177 - - 1,315,467 1,396,786 1,546,456 1,712,100 TRANSFERS OUT Transfer to CIP - - - - Transfer to Special Event 200,000 200,000 200,000 700,000 TOTAL TRANSFERS OUT 200,000 200,000 200,000 700,000 TOTAL EXPENDITURES & TRANSFERS 1,515,467 1,596,786 1,746,456 2,412,100 OH COST 35,681 35,691 35,691 35,691 502,814 1,125,592 217,853 (437,791) 381,395 884,209 2,009,801 2,227,654 884,209 2,009,801 2,227,654 1,789,863 TOTAL REVENUES HOTEL/MOTEL TAX FUND Revenue & Expenditure Projections Fiscal Year 2024-2025 EXCESS (DEFICIENCY) BEGINNING FUND BALANCE ENDING FUND BALANCE Personnel Services Contractual Services Supplies CVB Personnel Services Capital Items TOTAL EXPENDITURES Supplies NFM HOT Reimbursements 22 151 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget CHARGES FOR SERVICES 335,138 372,429 299,000 304,000 Concession Revenues - 769 1,000 1,000 Tribute Lease 101,074 123,466 220,000 120,000 Old American Lease - - - - Blue Sky 732 - 12,000 12,000 Marine Quest 166,250 139,218 90,000 90,000 4,602 19,218 - - Mitigation Fees - - - - 100,553 100,553 - - 708,350 755,653 622,000 527,000 TOTAL REVENUES & TRANSFERS 708,350 755,653 - 622,000 527,000 EXPENDITURES 10,044 17,860 30,300 34,050 - - - 20,000 80,623 80,342 95,950 109,300 4,829 11,922 12,250 15,150 64,218 112,110 46,000 55,000 Non-Capital - Other Equipment - - - - 32,484 4,200 - - 192,197 226,434 184,500 233,500 TRANSFERS OUT 35,000 35,000 50,000 50,000 TOTAL TRANSFERS OUT 35,000 35,000 50,000 50,000 227,197 261,434 234,500 283,500 481,153 494,219 387,500 243,500 1,079,364 1,560,517 2,054,735 2,442,235 1,560,517 2,054,735 2,442,235 2,685,735 Maintenance ENDING FUND BALANCE Capital Outlay TOTAL EXPENDITURES Transfer to Parks Fund TOTAL EXPENDITURES & TRANSFERS EXCESS (DEFICIENCY) BEGINNING FUND BALANCE Lease Interest Revenue Lease Revenue TOTAL REVENUES Contractual Services Supplies Part Time Temporary Personel Professional Services Fees & Permits LAKE PARKS FUND Revenue & Expenditure Projections Fiscal Year 2024-2025 23 152 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget REVENUES Donations & Sponsorships 25,440 31,852 13,000 36,200 36,737 23,719 17,000 36,000 62,177 55,572 30,000 72,200 TRANSFERS IN 345,000 400,000 444,000 0 200,000 200,000 200,000 700,000 545,000 600,000 644,000 700,000 TOTAL REVENUES & TRANSFERS 607,177 655,572 674,000 772,200 EXPENDITURES Personnel 156,247 116,859 150,779 160,768 Supplies 13,125 - - 0 Printing Services 1,562 3,284 3,500 3,200 Christmas 5,246 7,384 7,500 10,500 Christmas Light Show Supplemental 50,000 49,512 65,000 65,000 Liberty by The Lake 85,778 45,544 96,000 100,000 American Heroes 219,560 275,305 245,000 245,000 Parent Child Event 5,399 6,550 6,550 6,550 Halloween Campout 6,120 6,000 - - Easter Egg Hunt 4,532 6,092 6,500 7,500 Event Marketing 2,467 4,378 3,500 3,500 Arbor Day 737 1,209 2,500 1,750 Movies In The Park 6,448 4,915 6,000 6,000 Coach Cox Kids Chase 3,506 2,537 4,000 4,500 Up, Up & Away 3,506 2,537 4,000 4,000 Back To School 0 0 0 2,500 Bow Wow Pow Wow 2,302 1,074 2,000 2,000 Road Runners Club 10,000 10,000 10,000 10,000 N TX Food Pantry 8,000 - 5,000 5,000 Chamber Golf Tourney - - 6,000 6,000 Lakeside Community Theatre 12,000 12,000 12,000 12,000 Metro Relief - - - - TOTAL EXPENDITURES 596,536 555,180 635,829 655,768 OH COST 35,688 35,670 35,670 35,670 (25,047) 64,722 2,501 80,762 3,372 (21,675) 43,047 45,548 (21,675) 43,047 45,548 126,310 Event Revenues SPECIAL EVENTS FUND Revenue & Expenditure Projections Fiscal Year 2024-2025 ENDING FUND BALANCE TOTAL REVENUES Transfer from - General Fund Transfer from - Hotel/Motel Tax TOTAL TRANSFERS IN EXCESS (DEFICIENCY) BEGINNING FUND BALANCE 24 153 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget REVENUES One Dollar Donation 257 252 300 300 Recycling Rebate Donation - - - - Investment Income - - - - TOTAL REVENUES 257 252 300 300 EXPENDITURES Contractual Services - - - - TOTAL EXPENDITURES - - - - 257 252 300 300 10,134 10,391 10,643 10,943 10,391 10,643 10,943 11,243 BEGINNING FUND BALANCE ENDING FUND BALANCE EXCESS (DEFICIENCY) CITIZEN DONATION FUNDRevenue & Expenditure ProjectionsFiscal Year 2024-2025 25 154 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget REVENUES Child Safety Fund Revenue 2,651 3,293 1,700 2,000 Denton County Child Safety Fund 49,330 50,545 49,000 50,000 51,981 53,838 50,700 52,000 TOTAL REVENUES & TRANSFERS 51,981 53,838 50,700 52,000 EXPENDITURES Child Advocacy Center - 59,500 65,608 50,000 TOTAL EXPENDITURES - 59,500 65,608 50,000 TRANSFER OUT Transfer - General Fund 10,000 10,000 10,000 10,000 TOTAL TRANSFER OUT 10,000 10,000 10,000 10,000 10,000 69,500 75,608 60,000 41,981 (15,662) (24,908) (8,000) 44,689 86,670 71,008 46,100 86,670 71,008 46,100 38,100 ENDING FUND BALANCE TOTAL REVENUES TOTAL EXPENDITURES & TRANSFERS CHILD SAFETY FUNDRevenue & Expenditure ProjectionsFiscal Year 2024-2025 EXCESS (DEFICIENCY) BEGINNING FUND BALANCE 26 155 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget REVENUES Donations - - - - - - - - TRANSFERS IN 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 TOTAL REVENUES & TRANSFERS 10,000 10,000 10,000 10,000 EXPENDITURES Personnel 609 445 2,200 2,250 Contractual Services - - 300 300 Supplies 25 7,907 11,700 13,200 Maintenance - - - - TOTAL EXPENDITURES 634 8,351 14,200 15,750 TRANSFERS OUT General Fund - - - - 634 8,351 14,200 15,750 9,366 1,649 (4,200) (5,750) 1,833 11,199 12,847 8,647 - 11,199 12,847 8,647 2,897 ENDING FUND BALANCE TOTAL REVENUES Transfer In - General Fund TOTAL TRANSFERS IN TOTAL EXPENDITURES & TRANSFERS EXCESS (DEFICIENCY) KEEP THE COLONY BEAUTIFULRevenue & Expenditure ProjectionsFiscal Year 2024-2025 BEGINNING FUND BALANCE 27 156 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget REVENUES 5,527,317 - - - - - 5,527,317 - - - TOTAL REVENUES & TRANSFERS 5,527,317 - - - TRANSFERS OUT - - 11,032,945 - - - - TOTAL TRANSFERS OUT - - 11,032,945 - - - 11,032,945 - 5,527,317 - (11,032,945) - 5,505,628 11,032,945 11,032,945 0 11,032,945 11,032,945 0 0 ENDING FUND BALANCE TOTAL REVENUES Transfer - Tax Debt Fund Transfer - Utility Fund TOTAL EXPENDITURES & TRANSFERS EXCESS (DEFICIENCY) BEGINNING FUND BALANCE Interest SLFRF Fund Revenue & Expenditure Projections Fiscal Year 2024-2025 SLFRF Revenue 28 157 2021-2022 2022-2023 2023-2024 2024-2025 Actual Actual Budget Budget REVENUES 264,960 - - - State Grant Revenue - - 264,960 - - - Transfer In - Community Development - 7,083,340 4,000,000 3,500,000 TOTAL REVENUES & TRANSFERS 264,960 7,083,340 4,000,000 3,500,000 EXPENDITURES Contractual Servics - - 150,000 - Maintenance 61,945 205,526 50,000 - Non-Capital - - 50,000 - Capital Outlay 909,885 1,659,244 3,500,000 - TOTAL EXPENDITURES 971,829 1,864,769 - 3,750,000 - - TRANSFERS OUT - - - - Transfer - Parks Fund - - - - TOTAL TRANSFERS OUT - - - - 971,829 1,864,769 3,750,000 - (706,869) 5,218,571 250,000 3,500,000 4,695,803 3,988,933 9,207,504 9,457,504 3,988,933 9,207,504 9,457,504 12,957,504 PARK IMPROVEMENTS FUNDRevenue & Expenditure ProjectionsFiscal Year 2024-2025 Park Dedication Fees BEGINNING FUND BALANCE ENDING FUND BALANCE TOTAL REVENUES Transfer - General Fund TOTAL EXPENDITURES & TRANSFERS EXCESS (DEFICIENCY) 29 158 Department General Description 2025 PARD Dumpster Enclosure Expansion 31,590.00$ Public Works Waste Water Plant Precast Screening Wall 500,000.00$ Streets Mueller Equipment Barn 35,000.00$ Streets Sand Spreader Enclosure 50,000.00$ Facilities Maint.LED Lighting Upgrades 150,000.00$ Facility Maint.Community Center Roof 300,000.00$ Facility Maint.Fire Station 2 Roof 150,000.00$ Facility Maint.Foundation Repairs @ PD and City Hall 165,000.00$ Facility Maint.PD Courtroom Floor Replacement 9,000.00$ Facility Maint.Police Lobby Automatic Doors 50,000.00$ Facility Maint.Recreation Center Roof 240,000.00$ Fleet Additional Electical Outlets 8,000.00$ Total:1,688,590.00$ Dispatch Dallas Regional Warrant Interface 17,000.00$ Fleet Vehical Maintenance Software 45,000.00$ IT Access Control Systems 350,000.00$ IT Annes AV System 25,000.00$ IT Cell Phone Upgrades (61)30,000.00$ IT Compliance Mnagement Software 44,000.00$ IT Enterprise Backup Solution 52,000.00$ IT Microsoft enterprise Agreement 150,000.00$ PARD VenTek Kiosk Card Reader Upgrade 34,500.00$ Police Axon Interview Room Camera System 65,000.00$ Police Flock Safety Cameras 39,250.00$ Police Power DMS Bundle 30,756.00$ Waste Water Security Camera's 50,000.00$ Police Brazos Zebra Ticket Writers/Printers 45,000.00$ Total:977,506.00$ Police K9 unit 47,000.00$ Police Grandscape Police Equipment 48,000.00$ Police Motorola Portable Radios (35)250,000.00$ Total:Total:345,000.00$ Emergency Svcs Outdoor Warning Sirens 127,500.00$ Fleet Brake Rotor Machine 12,000.00$ PARD Stage for Events & Concerts 313,534.00$ Animal Services Outdoor Dog Kennels 5,000.00$ Animal Services Dog Bowl Sanitizing Machine 7,500.00$ Capital Outlay & Special Maintenance Plan Summary FY24-25 Building Expansion, Renovation, & Maintenance Computers, Software & Hardware Emergency Vehicles & Equipment Equipment 30 159 Fleet Fuel Injector Cleaner 2,000.00$ Total:467,534.00$ Engineering ITS Detection Equipment 325,000.00$ Engineering Replace/Upgrade Traffic Signal Equipment 170,000.00$ Engineering School Zone Flashers 25,000.00$ Streets Husqvarna Walk Behind Saw 30,000.00$ Engineering AutoCad License Renewal 1,500.00$ Engineering Bridge Repair at Grandscape 300,000.00$ Engineering City Wide Street Pavement Lifting Surfaces 250,000.00$ Engineering Drainage Impact Fee Study 50,000.00$ Engineering Misc. Drainage & Erosion Repair Projects 400,000.00$ Engineering Pavement Condition Evaluation for Alleys 50,000.00$ Engineering Regional Detention Pond Evaluation (SW Utility Fund 50,000.00$ Engineering Roadway Impact Fee Study 50,000.00$ Engineering Stormwater Permit Consulting Assistance (SW Utility 50,000.00$ Engineering Street Lights 30,000.00$ Streets Barricades 20,000.00$ Total:1,801,500.00$ Engineering Ford F150 55,500.00$ Facilities Maint F250 w/ Ladder rack (3)158,768.00$ Fire Divison Chief of Training Vehicle 79,726.00$ Fire Fire Admin Staff Vehicles (2)159,452.00$ Fire Firefighting Drone 39,000.00$ Fire Incident Support Vehicle 50,000.00$ PARD John Deere Gator Model TE 4x2 18,700.00$ PARD Replace Unit #545E 27,000.00$ PARD Replace Unit #552 73,000.00$ Police Grandscape Police Vehicles (3)285,000.00$ Police K9 Officer Vehicle 95,000.00$ Police Replacement Police Vehicles (6)450,000.00$ Storm Water Cat Skid Steer Loader 75,000.00$ Streets Backhone Loader 175,000.00$ Streets Dynamic Message Boards (5)110,000.00$ Streets Ford F-250 w/ Ladder Rack & Toolbox (2)200,000.00$ Streets Ford F350 Super Cab w/ Asphalt Heater 140,000.00$ Utility Admin 2024 Ford Maverick (Unit #6135)34,400.00$ Utility Admin Ford F150 Trucks (Units #6136 & #6137)105,294.00$ Waste Water Flatbed Attached Crane 30,000.00$ Waste Water Sludge Hauling Trailers (2)100,000.00$ Water Dist.Ford F550 4x4 100,000.00$ Water Dist.Ranger Pickup 27,055.00$ Water Dist.Sewer Camera Trailer 207,000.00$ Water Production Mobile Workshop Utility Trailer 20,500.00$ Streets Vehicles, Trailers, & Heavy Equipment 31 160 Water Production Replace Unit #6122 - Transit Cargo Van 83,425.00$ Total:2,898,820.00$ Waste Water Lift Station Aerators 27,000.00$ Water Dist.Line Locate Wand 13,860.00$ Water Production Connecting Water Facilities to City Network 150,000.00$ Water Production Disinfectant Equipment Well #4 56,500.00$ Water Production Paluxy Well Pump 105,000.00$ Water Production Paving Parking Area 46,000.00$ Water Production Public Works Radio Repeater 56,000.00$ Water Production Stage 1 of 2 Motor Control Center 807,537.00$ Water Production VFD Pump 178,500.00$ Engineering Water/Wastewater Master Plan & Impact Fee Study 150,000.00$ Total:1,590,397.00$ 9,769,347.00$ CDC Parks Master Plan Revision 100,000.00$ Total:100,000.00$ 9,869,347.00$ Combined Capital Outlay & Special Maintenance Grand Total: Capital Outlay & Special Maintenance Grand Total: Water & Wastewater Equipment & Projects Community Development Corporation 32 161 Department General Description 2025 2026 2027 2028 2029 Total: Facility Maint.Animal Shelter Expansion 350,000.00 - - - - 350,000.00 Facility Maint.Library Remodel 600,000.00 - - - - 600,000.00 Facility Maint.Remodel Community Center 220,000.00 - - - - 220,000.00 Facility Maint.PD Relocation at Comm Center 225,000.00 - - - - 225,000.00 Facility Maint.Remodel Trinity North Building 11,000,000.00 - - - - 11,000,000.00 PARD Stewart Creek Park Master Plan Impv 550,000.00 550,000.00 550,000.00 500,000.00 - 2,150,000.00 Totals:12,945,000.00 550,000.00 550,000.00 500,000.00 - 14,545,000.00 Fire Fire Station 3 Aux Building 517,990.00 - - - - 517,990.00 Totals:517,990.00 - - - - 517,990.00 Fire Squad 18 Wet Rescue Fire Apparatus 1,505,140.00 - - - 1,505,140.00 Totals:1,505,140.00 - - - - 1,505,140.00 Engineering Bill Allen Stream Bank Stabalization 350,000.00 - - - - 350,000.00 Engineering Haven Hills & Waters Edge Connector 80,000.00 850,000.00 - - - 930,000.00 Engineering Memorial Drive Widening 500,000.00 2,000,000.00 5,000,000.00 7,000,000.00 5,000,000.00 19,500,000.00 Engineering North Colony Flooding 175,000.00 200,000.00 - - - 375,000.00 Engineering Paige Road Channel Stabalization 600,000.00 - - - - 600,000.00 Engineering Plano Parkway Outfall Dissipator 250,000.00 - - - - 250,000.00 Engineering Residential Street Reconstruction 6,650,000.00 1,850,000.00 - - - 8,500,000.00 Streets General Alleyway Repair - Large 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 7,500,000.00 Streets General Alleyway Repair - Small 500,000.00 500,000.00 500,000.00 500,000.00 500,000.00 2,500,000.00 Streets General Street Repair - Multi-Panel 1,500,000.00 3,500,000.00 3,500,000.00 3,500,000.00 3,500,000.00 15,500,000.00 Engineering Residential PCI Driven Concrete Road Repa 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 1,000,000.00 5,000,000.00 Engineering Strickland Drainage Pipe Repairs 850,000.00 - - - - 850,000.00 Engineering Tribute Water Ponding 200,000.00 200,000.00 200,000.00 - - 600,000.00 Totals:14,155,000.00 11,600,000.00 11,700,000.00 13,500,000.00 11,500,000.00 62,455,000.00 Engineering Tribute Water Well 1,200,000.00 5,000,000.00 4,000,000.00 - - 10,200,000.00 Engineering Wastewater Treatment Plant CMAR 5,500,000.00 - - - - 5,500,000.00 Facility Maint.Backup Generator Equipment Well #4 1,008,000.00 - - - - 1,008,000.00 Totals:7,708,000.00 - - - - 6,508,000.00 CIP Grand Total:36,831,130.00 12,150,000.00 12,250,000.00 14,000,000.00 11,500,000.00 85,531,130.00 Comprehensive Improvement Plan Summary FY25-29 Building Expansion, Renovation, & Maintenance Computers, Software & Hardware Emergency Vehicles Streets Water & Waste Water 33 162 CDC Aquatic Park Upgrades 450,000.00 450,000.00 450,000.00 - - 1,350,000.00 CDC Bill Allen Park Erosion (CDC Portion)500,000.00 - - - - 500,000.00 CDC Athletic Facility Upgrades 850,000.00 850,000.00 850,000.00 850,000.00 - 3,400,000.00 Totals:1,800,000.00 1,300,000.00 1,300,000.00 850,000.00 - 5,250,000.00 Combined CIP Grand Total:38,631,130.00 13,450,000.00 13,550,000.00 14,850,000.00 11,500,000.00 90,781,130.00 Combined CIP Grand Total 38,631,130.00$ Combined Capital Outlay Total 9,869,347.00$ Grand Total CIP & Capital Outlay 48,500,477.00$ FY24-25 Community Development Corporation 34 163 CITY OF THE COLONY DEBT MANAGEMENT POLICIES September 3rd, 2024 Prepared by the Finance Department Confirmed by the City Council on September 17th, 2024 35 164 DEBT MANAGEMENT POLICIES Table of Contents Page No. I. Purpose Statement 1 II. Responsibility 1 A. Bond Counsel Involvement 2 B. Financial Advisor Involvement III. Short Term Debt 2 A. General B. Commercial Paper C. Line of Credit IV. Long Term Debt 2 A. General 2 B. Bonds 3 C. Certificates of Obligation D. Public Property Finance Contractual Obligation E. Anticipation Notes 4 F. Negotiated versus Competitive Sale versus Private Placement G. Bidding Parameters 5 H. Bond Elections V. Refunding 5 VI. Capital Leasing 6 VII. Other Types of Financing 6 VIII. Ratios and Reserves 6 IX. Official Statement 7 A. Responsibility B. Timing C. Auditor’s Involvement 8 D. Printing X. Ratings 8 36 165 DEBT MANAGEMENT POLICIES Table of Contents Page No. XI. Credit Enhancements 9 XII. Secondary Market Disclosure 9 XIII. Arbitrage Liability Management 10 A. General B. Responsibility C. Internal Interim Financing 11 D. Spend-Out Exceptions For Federal Rebate XIV. Modification to Policies 12 37 166 I. PURPOSE The Debt Management Policies set forth comprehensive guidelines for the financing of capital expenditures. It is the objective of the policies that: 1. The City obtains financing only when necessary. 2. The process for identifying the timing and amount of debt or other financing is as efficient as possible. 3. The most favorable interest rates and lowest costs of issuance are obtained. 4. The City strives to maintain flexibility for future debt issuances. II. RESPONSIBILITY The primary responsibility for developing financing recommendations rests with the City Manager. In developing the recommendations, the City Manager shall be assisted by the Assistant City Manager and the Finance Director and their responsibilities shall be to: 1. Meet periodically to consider the need for financing and assess progress on the Capital Improvement Program. 2. Meet as necessary in preparation for financing. 3. Review changes in state and federal legislation. 4. Review annually the provisions of ordinances authorizing issuance of obligations. 5. Annually review services provided by the Financial Advisor, Bond Counsel, Paying Agent and other service providers to evaluate the extent and effectiveness of services provided. Every February, under the direction of the Assistant City Manager, Departments will submit Capital Projects for the Capital Improvement Program. The report shall be prepared by the Finance Director and be based in part on information from the department directors in the City and shall include a projection of near term financing needs compared to available resources, an analysis of the impact of contemplated financings on the property tax rate and user charges, and a financing recommendation. In developing financing recommendations, city management shall consider the following: 1. The amount of time proceeds of obligations are expected to remain on hand and the related carrying cost. 2. The options for interim financing including short term and interfund borrowing, taking into consideration federal and state reimbursement regulations. 3. The effect of proposed action on the tax rate and user charges. 4. Trends in interest rates. 5. Other factors as appropriate. 38 167 A. Bond Counsel Involvement The Bond Counsel will issue an opinion as to the legality and tax-exempt status of any obligations. The City will also seek the advice of Bond Counsel on all other types of financings and on any other questions involving federal tax or arbitrage law. The Bond Counsel is also responsible for the preparation of the ordinance authorizing issuance of obligations, and all of the closing documents to complete their sale and delivery, and will perform other services as defined by the contract approved by the City Council. B. Financial Advisor Involvement The City will seek the advice of the Financial Advisor when necessary. The Financial Advisor will advise on the structuring of obligations to be issued, informs the City of various options, advise the City as to how choices will impact the marketability of City obligations and will provide other services as defined by contract approved by the City Council. Financial Advisor will be able to bid on any City competitive debt issues if approval is given by the City. The Financial Advisor will inform the City Manager of significant issues. III. SHORT TERM DEBT A. General When appropriate, the city may consider short-term obligations. Some forms of short-term obligations can be obtained quicker than long-term obligations and thus can be used in emergencies until long-term financing can be obtained. In some cases when the amount of financing required in the immediate future is relatively small, it may be cheaper for the City to issue a small amount of short- term obligations to provide for its immediate needs, than to issue a larger amount of long-term obligations to provide financing for both immediate, and future needs when the carrying costs of issuing obligations, which are not immediately needed are taken into account. The amount of short-term obligations due to mature in a year shall not exceed 5% of the aggregate principal amount of outstanding long-term debt. IV. LONG TERM DEBT A. General Long-term obligations will not be used for operating purposes, and the life of the obligations will not exceed the useful life of the projects financed. 39 168 A resolution of intent to issue bonds or other debt obligations authorizing staff to proceed with preparations shall be presented for the consideration of the City Council when capital projects are identified. This provision may be waived in the event of emergencies or other good cause. Debt service structure will approximate level debt service unless operational matters dictate otherwise. The cost of issuance of private activity bonds is usually higher than for governmental purpose bonds. Consequently, private activity bonds will be issued only when they will economically benefit the City. The cost of taxable debt is higher than the cost of tax-exempt debt. However, the issuance of taxable debt is mandated in some circumstances, and may allow valuable flexibility in subsequent contracts with users or managers of the improvement constructed with the bond proceeds. Therefore, the City will usually issue obligations tax-exempt, but may occasionally issue taxable obligations. B.Bonds Long-term general obligation or revenue bonds may be issued to finance significant capital improvements. If required by state law or charter, an election will be held to authorize such obligations. Bonds will have a maximum repayment term of 25 years or less. When cost/beneficial, and when permitted under applicable ordinances, the City may consider the use of surety bonds, lines of credit, or similar instruments to satisfy reserve requirements. C.Certificates of Obligation Certificates of Obligation may be issued to finance permanent improvements, land acquisition, and other public purposes. The life of certificates of obligation issued to finance equipment shall match to the extent possible the useful life of the equipment, which is usually three to five years. Certificate of Obligations will be secured by a tax pledge and/or a revenue pledge, as required by law and as determined to be in the best interest of the City. Some revenues are restricted as to the uses for which they may be pledged. Water and wastewater revenues may be pledged without limit. D.Public Property Finance Contractual Obligation Public property finance contractual obligations may be issued to finance the acquisition of personal property. The life of the contractual obligations issued to finance personal property shall match the useful life of the personal property. 40 169 E.Anticipation Notes Anticipation Notes may be used to finance projects or acquisition that could also be financed with Certificates of Obligation. Anticipation Notes may be secured and repaid by a pledge of revenue, taxes, a combination of revenue and taxes or the proceeds of a future debt issue. Anticipation Notes are authorized by an ordinance adopted by the City. Anticipation Notes have several restrictions, which include: 1.Anticipation Notes issued for general purposes must mature before the seventh anniversary of the date the Attorney General approves the issue. 2.A governing body may not issue Anticipation Notes that are payable from bond proceeds unless the proposition authorizing the issuance of the bonds has already been approved by the voters and the proposition states that anticipation notes may be issued. F.Negotiated versus Competitive Sale versus Private Placement When feasible and economical, obligations shall be issued by competitive sale rather than negotiated sale. A sale may be negotiated when the issue is predominantly a refunding issue or in other non-routine situations, which require more flexibility than a competitive sale allows. In addition, market volatility may necessitate a negotiated sale. Whenever the option exists to offer an issue either for competitive sale or for negotiated sale, analysis of the options shall be performed to aid in the decision making process. When a sale is not competitively bid, the City will participate with the Financial Advisor in the selection of the underwriter or direct purchaser. The criteria used to select a winning bidder in a competitive sale shall be the true interest cost. In a negotiated sale, the underwriter may be selected through a request for proposals (RFP). The criteria used to select an underwriter in a negotiated sale should include the following: 1.Overall experience 2.Marketing philosophy 3.Capability 4.Previous experience with the City as managing or co-managing underwriter 5.Financial Statement 6.Public Finance team and resources 7.Breakdown of underwriter’s discount a.Management fee – compensation to the underwriter for their work in structuring the issue. b.Underwriting fee – compensation to the underwriter for using their capital to underwrite the bonds. 41 170 c.Average takedown – the portion of the underwriter’s discount used to pay the sales force. d.Expenses – administrative costs such as underwriter’s counsel and administrative fees. In a negotiated underwriting, the sale will be, to the extent appropriate, negotiated with a consortium of underwriting firms, to preserve some of the benefits of competition. When cost/beneficial, the City may privately place its debt. Since no underwriter participates in a private placement, it may result in lower cost of issuance. Private placement is sometimes an option for small issues. The opportunity may be identified by the Financial Advisor. G.Bidding Parameters The notice of sale will be carefully constructed to ensure the best possible bid for the City, in light of existing market conditions and other prevailing factors. Parameters to be examined include: 1.Limits between lowest and highest coupons 2.Coupon requirements relative to the yield curve 3.Method of underwriter compensation, discount or premium coupons 4.Use of true interest cost (TIC) versus net interest cost (NIC) 5.Use of bond insurance 6.Deep discount bonds 7.Variable rate bonds 8.Call provisions H.Bond Elections Before a bond election, the City Manager and City Councilmembers will be provided with competent debt capacity analyses, tax and user fee impact projections and other information as directed by the City Manager’s Office. The Bond Counsel and Financial Advisor will provide support during the process. V.REFUNDING The City shall consider refunding debt whenever an analysis indicates the potential for present value savings or the city’s needs to restructure its debt payments. As a general rule, private activity bonds may be refunded in a current refunding only. 42 171 VI.CAPITAL LEASING Capital leasing is an option for the acquisition of a piece or package of equipment costing less than $1,000,000. Leasing shall not be considered when funds are on hand for the acquisition unless the interest expense associated with the lease is less than the interest that can be earned by investing the funds on hand or when other factors such as budget constraints or vendor responsiveness override the economic consideration. Whenever a lease is arranged with a private sector entity, a tax-exempt rate shall be sought. Whenever a lease is arranged with a government or other tax-exempt entity, the City shall strive to obtain an explicitly defined taxable rate so that the lease will not be counted in the City’s total annual borrowings subject to arbitrage rebate. The lease agreements shall permit the City to refinance the lease at no more than reasonable cost should the City decide to do so. A lease, which can be called at will, is preferable to one, which can merely be accelerated. Since the market for lease financings is relatively inefficient, the interest rates available at any one time may vary widely. Therefore, the City shall attempt to obtain at least three competitive proposals for any major lease financing. The net present value of competitive bids shall be compared; taking into account whether payments are in advance or in arrears, and how frequently, payments are made. The purchase price of equipment shall be competitively bid as well as the financing cost. The advice of the City’s Bond Counsel shall be sought in any leasing arrangement and when federal tax forms 8038 are prepared to ensure that all federal tax laws are obeyed. The City may consider issuing certificates of participation to finance a very large project. Care should be taken because financing costs may be greater than for other types of financing. When possible, the lease agreement will be backed with a tax pledge. If the City is obligated to make payment, more than a year in the future then the agreement will probably be considered debt by the State. However, if the payments are subject to annual appropriation by the City Council, then they may not. VII.OTHER TYPES OF FINANCING From time to time, other types of financing may become available. Examples of these options are debt pools with other entities and low-interest loans from State Agencies such as the Texas Water Development Board. The Finance Director will prepare a written analysis of an option, with the advice of the City’s Bond Counsel and Financial Advisor. VIII.RATIOS AND RESERVES The portion of the City’s property tax levied for debt service shall not exceed 40% of the total tax rate levied each year even though the Texas Attorney General’s Office, in its 43 172 review of bonds or other obligations secured by Ad Valorem Taxes, generally imposes a limit of $1.50 for debt service for cities with a $2.50 maximum tax rate. However, the City is obligated to levy an Ad Valorem Tax sufficient to provide for the timely payments of its debt obligations secured by Ad Valorem Taxes. The City will maintain net revenues equaling to at least 1.10 times the maximum annual principal and interest requirement and 1.25 times the average annual principal and interest requirements of all parity bonds outstanding in the Water and Wastewater Fund. For water and sewer, and other types of revenue bonds, the bond documents will designate the reserve fund amount if a reserve fund is to be established. When revenue supported debt is issued, a debt service reserve or similar alternative may be established. The requirements for and source of the reserve will be determined on a case-by-case basis. IX.OFFICIAL STATEMENT The Official Statement is the disclosure document prepared by or on behalf of the City for an offering of securities. A.Responsibility The preparation of the Official Statement is the responsibility of the Finance Director with the help of the Financial Advisor. Information for the Official Statement is gathered from departments/divisions throughout the City. B.Timing The Finance Director will begin assembling the information needed to update the Official Statement before the offering of debt. Audited financial statement information is expected in March. As soon as it is available, audited financial statement information and capital budget information will be incorporated. If the next anticipated bond sale is expected to be more than twelve months after fiscal year end, then the prior year’s audited financial statement information may be updated using unaudited figures. The Financial Advisor shall begin preparing the Official Statement at least eight weeks prior to an anticipated bond issuance. Subsequent timing will generally be as follows: 1.The first draft of the preliminary Official Statement takes approximately 2 weeks to create. 2.Copies of the first draft are provided to the City’s Bond Counsel and City Staff, who will review it for 2 weeks. In the case of a negotiated sale, the underwriter’s counsel will also be asked for comments. 44 173 3.Comments from reviewers should be submitted during the two-week review period. About 1 week will be required to make the requested changes. After they have been made, the Official Statement is either sent to print or subjected to a second review. 4.During the printing process or the second review, a copy of the draft Official Statement is sent to the rating agencies for their review. 5.The preliminary Official Statement should be completed and mailed or electronically distributed to underwriters 2 weeks prior to the bond sale date. The preliminary document will be titled “preliminary” with red printed disclosure language and will be called a “red herring”. 6.After interest rates have been accepted by the City Council, the final Official Statement must be prepared and distributed to the underwriter within seven business days of the date of sale. C.Auditor’s Involvement The City will include a review of its Official Statement in the contract for services with its external auditor if required. D.Printing The Financial Advisor may print the Official Statement for the City. X.RATINGS The City’s goal is to maintain or improve its bond ratings. To that end, prudent financial management policies will be adhered to in all areas. Full disclosure of operations will be made to the bond rating agencies. The City staff, with the assistance of the Financial Advisor and Bond Counsel, will prepare the necessary materials for presentation to the rating agencies. The City may choose to use Fitch Ratings, Moody’s or Standard and Poor’s. The City shall maintain a line of communications with those rating agencies (Moody’s, Standard and Poor’s, or Fitch), informing them of major financial events in the City as they occur. The Comprehensive Annual Financial Report shall be distributed to the rating agencies after it has been accepted by the City Council. The rating agencies will also be notified either by telephone or through written correspondence when the City begins preparation for a debt issuance. After the initial contact, a formal ratings application will be prepared and sent along with the draft of the Official Statement relating to the bond sale to the rating agencies. This application and related documentation should be sent several weeks prior to the bond sale to give the rating agencies sufficient time to perform their review. 45 174 A personal meeting with representatives of the rating agencies will be scheduled every few years or whenever a major project is initiated. XI .CREDIT ENHANCEMENTS Credit enhancements are mechanisms that guarantee principal and interest payments. They include bond insurance and a line or letter of credit. Credit enhancement will usually bring a lower interest rate on debt and a higher rating from the rating agencies, thus lowering overall costs. During debt issuance planning, the Financial Advisor will advise the City whether or not a credit enhancement is cost effective under the circumstances and what type of credit enhancement, if any, should be purchased. In a negotiated sale, bids will be taken during the period prior to the pricing of the sale. In a competitive sale, the bidder may purchase bond insurance if the issue qualifies for bond insurance. XII.SECONDARY MARKET DISCLOSURE SEC 15c2-12 regulations became effective July 3, 1995. The new regulation requires municipal debt issuers to provide specified financial and operating information for fiscal years beginning on January 1, 1996, or later. The information provided should mirror the information provided in an official statement at the time of a primary offering. The annual financial information is to be sent to all Nationally Recognized Municipal Information Depositories (NRMSIRs) designated by the SEC. Additionally, issuers must notify the State Information Depositories (SIDs) if one exists. In addition to the financial and operating information, any material event must be provided to all NRMSIRs, Municipal Securities Rulemaking Board (MSRB) and to the state SID’s. Municipal debt issuers will be obligated to provide ongoing disclosure on the status of the following material events: 1.Principal and interest payment delinquencies 2.Non-payment-related defaults 3.Unscheduled draws on reserves 4.Unscheduled draws on credit enhancements 5.Substitution of credit or liquidity providers, or the failure to perform 6.Adverse tax opinions or events affecting the tax-exempt status of the security 7.Modifications to rights of security holders 8.Bond calls 9.Defeasances 10.Matters affecting collateral 11.Rating changes The Finance Director will be designated “Compliance Officer” for disclosure requirements. Levels of reporting will include: 46 175 1.Notification by certified mail to NRMSIRs, and SID’s of material events, with copies to the City Council 2.Copies of CAFR and updated tables from the Official Statement to NRMSIRs and SIDs within six months of fiscal year end. XIII.ARBITRAGE LIABILITY MANAGEMENT It is the City’s policy to minimize the cost of arbitrage rebate and yield restrictions while strictly complying with the law. A.General Federal arbitrage legislation is intended to discourage entities from issuing tax- exempt obligations unnecessarily. In compliance with the spirit of this legislation, the City will not issue obligations except for identifiable projects with very good prospects of timely initiation. Obligations will be issued as closely in time as feasible to the time contracts are expected to be awarded so that they will be spent quickly. B.Responsibility Because of the complexity of arbitrage rebate regulations and the severity of non- compliance penalties, the advice of Bond Counsel and other qualified experts will be sought whenever questions about arbitrage rebate regulations arise. The City contracts outside consultants for arbitrage rebate services. The Accounting Manager will be responsible for identifying the amount of unspent debt proceeds including interest which is on hand and will be responsible for ensuring that, to the extent feasible, the oldest proceeds on hand are spent first. The consultants will maintain a system for computing and tracking the arbitrage rebate liability. The consultants will notify the City within 60 days of year-end of the amount of accrued liability. The consultants will also be responsible for notifying the City two months in advance of when a rebate of excess arbitrage earnings is due to the Internal Revenue Service. The City’s Bond Counsel and Financial Advisor may be requested to review in advance any arbitrage rebate payments and forms sent to the Internal Revenue Service. The expenditure of obligation proceeds will be tracked in the financial accounting system by type of issue. Investments will be pooled for financial accounting purposes and may, at the discretion of the Finance Director, be pooled for investment purposes. When investments of bond proceeds are co-mingled with other investments, the City shall adhere to the Internal Revenue Service rules on accounting allocations. 47 176 Arbitrage rebate costs shall be charged as negative interest revenue to the funds in which the related obligation proceeds were originally deposited. C.Internal Interim Financing In order to defer the issuance of obligations, when sufficient non-restricted reserve funds are on hand, consideration shall be given to appropriating them to provide interim financing for large construction contracts or parts of contracts. When the appropriations are subsequently re-financed with proceeds of obligations or other resources, the non-restricted reserve funds shall be repaid. When expenditures are reimbursed from debt issuances, applicable state law and the Internal Revenue Service rules on reimbursements will be complied with so that the reimbursements may be considered expenditures for arbitrage purposes. Requirements are in general: 1.The City shall declare its intention to reimburse expenditure with debt proceeds before paying the expenditure, and will exclude cost of issuance. 2.Reimbursement bonds must be issued and the reimbursement made within eighteen months after the expenditure was made or the property financed by the expenditure was placed in service, whichever is later. 3.The expenditure to be reimbursed must be a capital expenditure. D.Spend-Out Exceptions For Federal Rebate Ar bitrage rebate regulations provide certain spending exceptions to the imposition of Federal rebate obligations. One such safe harbor applies to obligations issued for construction if certain rules are adhered to and the proceeds are spent within two years. Other such exceptions apply to expenditures of proceeds within 6 months or eighteen months. These options should be considered when circumstances indicate the City will with certainty be successful in achieving a spend-out goal. Such circumstances may include, but are not limited to the following: 1.Obligations are issued to finance a variety of small construction projects, not large projects that might be unexpectedly delayed after the issuance. In addition, project management understands the requirements and is firmly committed to achieving the spend-out goal. 2.Obligations are issued for a single, large high priority project with a relatively short construction period and there is a high level of commitment to speedy completion. When the two-year spend-out option is elected, debt will be issued for an estimated one year of expenditures to provide for unexpected delays of up to a year without incurring penalties. 48 177 The exercise of the spend-out options will always be coordinated with Bond Counsel and the Financial Advisor. The city shall coordinate with Bond Counsel and the Financial Advisor regarding the proper elections to be made in connection therewith. XIV.MODIFICATIONS TO POLICIES Management staff will review these policies annually and significant changes may be made with the approval of the City Manager. Significant policy changes will be presented to the City Council for confirmation. 49 178 CITY OF THE COLONY FINANCIAL MANAGEMENT POLICIES SEPTEMBER 3rd, 2024 Prepared by the Finance Department Confirmed by the City Council on September 17th, 2024 50 179 FINANCIAL MANAGEMENT POLICIES Table of Contents Page No. I. Purpose Statement 1 II. Accounting, Auditing and Financial Reporting 1 A. Accounting B. Funds C. External Auditing D. External Auditors Responsible to City Council E. External Auditors Rotation 2 F. External Financial Reporting G. Internal Financial Reporting III Internal Controls 2 A. Written Procedures B. Department Managers Responsible IV. Operating Budget 2 A. Preparation B. Balanced Budget 3 C. Planning D. Reporting E. Control F. Performance Measures and Productivity Indicators V. Capital Improvement Program 3 A. Preparation B. Control C. Program Planning D. Alternate Resources E. Debt Financing 4 F. Street Maintenance G. Water/Wastewater Main Rehabilitation and Replacement H. Water and Wastewater Special Projects I. Reporting 51 180 FINANCIAL MANAGEMENT POLICIES Table of Contents Page No. VI. Revenue Management 4 A. Simplicity B. Certainty C. Equity 5 D. Administration E. Revenue Adequacy F. Cost/Benefit of Abatement G. Diversification and Stability H. Non-recurring Revenues I. Property Tax Revenues J. User-Based Fees K. Impact Fees L. General and Administrative Charges 6 M. Utility Rates N. Interest Income O. Revenue Monitoring VII. Expenditure Control 6 A. Appropriations B. Contingency Account Expenditures C. Purchasing D. Professional Services E. Prompt Payment F. Equipment Financing 7 G. Information Technology VIII. Asset Management 7 A. Investments B. Cash Management C. Fixed Assets and Inventory 52 181 FINANCIAL MANAGEMENT POLICIES Table of Contents Page No. IX. Financial Condition and Reserves 7 A. No Operating Deficits B. Interfund Loans C. Operating Reserves 8 D. Risk Management Program 9 E. Loss Financing F. Enterprise Fund Self-Sufficiency X. Debt Management 9 A. General B. Self-Supporting-Debt C. Analysis of Financing Alternatives D. Voter Authorization XI. Staffing and Training 9 A. Adequate Staffing B. Training C. Awards, Credentials 10 XII. Grants Financial Management 10 A. Grant Solicitation B. Responsibility XIII. Annual Review & Reporting 10 53 182 I. PURPOSE STATEMENT These policies are developed by the City Manager to guide the Finance Director, and staff in financial matters. The overriding goal of the Financial Management Policies is to enable the City to achieve a long-term stable and positive financial condition while conducting its operations consistent with the council-manager form of government established in the City Charter. The watchwords of the City’s financial management include integrity, prudent stewardship, planning, accountability, and full disclosure. The purpose of the Financial Management Policies is to provide guidelines for the financial management staff in planning and directing the City’s day-to-day financial affairs and in developing recommendations to the City Manager. The scope of the policies spans accounting, auditing, financial reporting, internal controls, operating and capital budgeting, revenue management, cash management, expenditure control, and debt management. II. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING A. ACCOUNTING – The City’s Assistant Finance Director is responsible for establishing the chart of accounts, and for properly recording financial transactions. B. FUNDS - Self-balancing groups of accounts are used to account for City financial transactions in accordance with generally accepted accounting principles. Each fund is created for a specific purpose except for the General Fund, which is used to account for all transactions not accounted for in other funds. Funds are created and fund names are changed by City Council approval through resolution either during the year or in the City Council’s approval of the annual operating budget ordinances. C. EXTERNAL AUDITING – The City will be audited annually by outside independent auditors. The auditors must be a CPA firm capable to demonstrate that they have the breadth and depth of staff to conduct the City’s audit in accordance with generally accepted auditing standards, generally accepted government auditing standards, and contractual requirements. The auditors’ report on the City’s financial statements including federal grants single audit when required, will be completed within 120 days of the City’s fiscal year end, and the auditors’ management letter will be presented to the City staff within 150 days after the City’s fiscal year end. An interim management letter will be issued prior to this date if any materially significant internal control weaknesses are discovered. The City staff and auditors will jointly review the management letter with the City Council within 60 days of its receipt by the staff. D. EXTERNAL AUDITORS RESPONSIBLE TO CITY COUNCIL – The external auditors are accountable to the City Council and will have access to direct communication with the City Council if the City staff is unresponsive to auditor recommendations or if the auditors consider such communication necessary to fulfill their legal and professional responsibilities. 54 183 The City Council may conduct closed session annually with the auditors present without the presence of City staff. Such meeting shall be conducted in accordance with the Open Meetings Act. E. EXTERNAL AUDITOR ROTATION – The City will not require external auditor rotation, but will circulate requests for proposal for audit services periodically, normally at five-year intervals. F. EXTERNAL FINANCIAL REPORTING – The City will prepare and publish a Comprehensive Annual Financial Report (CAFR). The CAFR will be prepared in accordance with generally accepted accounting principles, and will be presented annually to the Government Finance Officers Association (GFOA) for evaluation and awarding of the Certification of Achievement for Excellence in Financial Reporting. The CAFR will be published and presented to the City Council within 120 days after the end of the fiscal year. City staffing limitations may preclude such timely reporting. In such case, the Finance Director will inform the City Manager and the City Manager will inform the City Council of the delay and the reasons therefore. G. INTERNAL FINANCIAL REPORTING - The Finance Department will prepare internal financial reports sufficient for management to plan, monitor, and control the City’s financial affairs. Internal financial reporting objectives are addressed throughout the policies. III. INTERNAL CONTROLS A. WRITTEN PROCEDURES – The Finance Director is responsible for developing citywide written guidelines on accounting, cash handling, and other financial matters, which will be approved by the City Manager. The Finance Department will assist department directors as needed in tailoring these guidelines into detailed written procedures to fit each department’s requirements. B. DEPARTMENT MANAGERS RESPONSIBLE – Each department director is responsible to the City Manager to ensure that good internal controls are followed throughout his or her department, that all guidelines on accounting and internal controls are implemented, and that all independent auditor internal control recommendations are addressed. IV. OPERATING BUDGET A. PREPARATION – The City’s “Operating Budget” is the City’s annual financial operating plan. It consists of governmental and proprietary funds, including the general obligation and revenue supported Debt Service Funds, but excluding Capital Projects Funds. The budget is prepared by the Finance Department with the cooperation of all City departments, and is submitted to the City Manager who makes any necessary changes and transmits the document to the City Council. 55 184 The preliminary budget should be filed with the City Secretary’s office on or before July 31st each fiscal year, and presented to the City Council. Thereafter, the final budget should be enacted by the City Council prior to fiscal year end. The operating budget shall be submitted to the GFOA annually for evaluation and awarding of the Award for Distinguished Budget Presentation. B. BALANCED BUDGET – The operating budgets will be balanced, with current revenues, and prior year surpluses greater than or equal to current expenditures/expenses except a rainy day fund reserve of sixty (60) days. C. PLANNING – The budget process will be coordinated to identify major policy issues for City Council’s consideration several months prior to the budget approval date. D. REPORTING – Periodic financial reports will be prepared to enable the department directors to manage their budgets and to enable the Finance Department to monitor and control the budget as authorized by the City Council. Summary financial reports will be presented to the City Council each month within four weeks after the month end. Such reports will include current year revenue and expenditures in comparison to budget and prior year actual revenues and expenditures. E. CONTROL – Operating Expenditure Control is addressed in another section of the Policies. F. PERFORMANCE MEASURES AND PRODUCTIVITY INDICATORS – Where appropriate, performance measures and productivity indicators will be used as guidelines and reviewed for efficiency and effectiveness. This information will be included in the annual budgeting process. V. CAPITAL IMPROVEMENT PROGRAM A. PREPARATION – The City’s Capital Improvement Program will include all capital projects. The Capital Improvement Plan will be prepared annually on a fiscal year basis. The Capital Improvement Plan will be reviewed annually by the City Council. The Capital Improvement Plan will be prepared by the Finance Department with the involvement of all City departments. B. CONTROL – All capital project expenditures must be approved by City Council. The Finance Department must ensure the availability of resources before a capital project contract is presented by the City Manager to the City Council for approval. C. PROGRAM PLANNING – The Capital Improvement Plan will include capital improvements program plans for future years. The planning time frame should normally be at least five years. The replacement and maintenance for capital items should also be projected for the next 5 years. Future maintenance and operations will be fully costed, so that these costs can be considered in the operating budget. 56 185 D. ALTERNATE RESOURCES – Where applicable, assessments, impact fees, or other user- based fees should be used to fund capital projects, which have a primary benefit to certain property owners. E. DEBT FINANCING – Recognizing that debt is usually a more expensive financing method, alternative financing sources will be explored before debt is issued. When debt is issued, it will be used to acquire major assets with expected lives, which equal or exceed the average life of the debt issued. The exceptions to this requirement are the traditional costs of marketing and issuing the debt, capitalized labor for design and construction of capital projects, and small component parts which are attached to major equipment purchases. F. STREET MAINTENANCE – The City recognizes that deferred street maintenance increases future capital costs by an estimated 5 to 10 times. Therefore, a portion of the General Fund Budget and/or debt issuances may be set aside each year to maintain the quality of streets. The amount will be established annually so that repairs will be made. G. WATER/WASTEWATER MAIN REHABILITATION AND REPLACEMENT – The City recognizes that deferred water/wastewater main rehabilitation and replacement increases future costs due to loss of potable water from water mains and inflow and infiltration into wastewater mains. Therefore, to ensure that the rehabilitation and replacement program is adequately funded, the City may annually appropriate an amount to provide for a water and wastewater main repair and replacement program. H. WATER AND WASTEWATER SPECIAL PROJECTS – A special fund will be maintained for water and wastewater capital projects. The fund will be funded with operating surpluses, interest earnings, and transfers from water and wastewater operations. As soon as practicable, after each fiscal year end when annual operating results are known, any Water/Wastewater Fund operating surplus in excess of budget which is not required to meet ending resources requirements, may be transferred to the Special Projects Fund with the approval of the City Council. The fund will be used for funding water/wastewater main rehabilitation and replacement, for major capital outlay, and for unplanned projects. I. REPORTING – Periodic financial reports will be prepared to enable the department managers to manage their capital budgets and to enable the Finance Department to monitor the capital budget as authorized by the City Council. VI. REVENUE MANAGEMENT A. SIMPLICITY – The City will strive to keep the revenue system simple, which will result in a decrease of compliance costs for the taxpayer or service recipient and a corresponding decrease in avoidance to pay. The City will avoid nuisance taxes, fees, or charges as revenue sources. B. CERTAINTY – An understanding of the revenue source increases the reliability of the revenue system. The City will enact consistent collection policies for its revenues so 57 186 that assurances can be provided that the revenue base will materialize according to budgets and plans. C. EQUITY – The City will strive to maintain equity in the revenue system structure. That is, the City will seek to minimize or eliminate all forms for subsidization between entities, funds, services, utilities, and customers. However, it is recognized that public policy decisions may lead to subsidies in certain circumstances, e.g., senior citizen property tax exemptions or partial property tax abatement. D. ADMINISTRATION – The benefits of revenue will exceed the cost of producing the revenue. The cost of collection will be reviewed annually for cost effectiveness. Where appropriate, the City will use the administrative processes of State or Federal collection agencies in order to reduce administrative costs. E. REVENUE ADEQUACY – The City will require that there be a balance in the revenue system. That is, the revenue base will have the characteristic of fairness and neutrality as it applies to cost of service, willingness to pay, and ability to pay. F. COST/BENEFIT OF ABATEMENT – The City will use due caution in the analysis of any tax, fee, or water and wastewater incentives that are used to encourage development. Ideally, a cost/benefit (fiscal impact) analysis will be performed as a part of such analysis. G. DIVERSIFICATION AND STABILITY – In order to protect the government from fluctuations in revenue source due to fluctuations in the economy, and variations in weather, (in the case of water and wastewater), a diversified revenue system will be maintained. H. NON-RECURRING REVENUES – One-time revenues will not be used for ongoing operations. Non-recurring revenues will be used only for non-recurring expenditures. Care will be taken not to use these revenues for budget balancing purposes. I. PROPERTY TAX REVENUES – Property shall be assessed at 100% of the fair market value as appraised by the Denton Central Appraisal District. Reappraisal and reassessment shall be done regularly as required by State law. All delinquent taxes will be aggressively pursued, with delinquents greater than 150 days being turned over to the City Attorney or a private attorney, and a penalty assessed to compensate the attorney as allowed by state law, and in accordance with the attorney’s contract. J. USER-BASED FEES – For services associated with a user fee or charge, the direct and indirect costs of that service will be offset by a fee where possible. There will be a periodic review of fees and charges to ensure that fees provide adequate coverage of costs of services. User charges may be classified as “full cost recovery,” “partial cost recovery,” and “minimal cost recovery,” based upon City Council policy. 58 187 K. IMPACT FEES – Impact fees are currently imposed for water, wastewater, roadway, and drainage in accordance with applicable city ordinances and State Law. Impact fees will be re-evaluated at least every five years as required by law. L. GENERAL AND ADMINISTRATIVE CHARGES – A method will be maintained whereby the General Fund can impose a charge to the enterprise funds or special revenue funds for general and administrative services (indirect costs), performed on their behalf. The details will be documented in the annual budget process in the form of transfers between funds. M. UTILITY RATES – The City will review utility rates periodically, and if necessary, adopt new rates that will generate revenues required to fully cover operating expenditures, meet the legal restrictions of all applicable bond covenants, provide for an adequate level of working capital needs and debt service requirements. This policy does not preclude drawing down cash balance to finance current operations. However, it is best that any extra cash balance be used instead to finance capital projects. N. INTEREST INCOME – Interest earned from investment of available monies, whether pooled or not, will be distributed to the funds in accordance with the average monthly cash balances. O. REVENUE MONITORING – Revenues actually received will be regularly compared to budgeted revenues and variances will be investigated. This process will be summarized in the appropriate budget report. VII. EXPENDITURE CONTROL A. APPROPRIATIONS – The level of budgetary control is the department level in the General Fund, Parks Fund, and Utility Fund and the fund level in all other funds. When budget adjustments (i.e., amendments) between departments and/or funds are necessary, these must be approved by the City Council. Budget appropriation amendments at lower levels of control shall be made in accordance with the applicable administrative procedures. B. CONTINGENCY ACCOUNT EXPENDITURES – The City Council must approve all contingency account expenditures of $50,000 or more, as discussed under Purchasing. C. PURCHASING – All purchases shall be in accordance with the City’s Purchasing Policies. D. PROFESSIONAL SERVICES – Professional services will generally be processed through a request for proposal process, except for smaller contracts. The City Manager may execute any professional services contract for less than $50,000 provided there is an appropriation for such contract. E. PROMPT PAYMENT – All invoices will be paid within 30 days of receipt of goods and services or receipt of invoices, whichever is later in accordance with the prompt 59 188 payment requirements of state law. Procedures will be used to take advantage of all purchase discounts where considered cost effective. However, payments will also be reasonably delayed in order to maximize the City’s investable cash, where such delay does not violate the agreed upon payment terms. F. EQUIPMENT FINANCING – Equipment may be financed when the useful life is at least three years. Vehicles to be replaced are identified and evaluated every year during the budget process. Depending on available resources, financing may be made by debt issuance rather than from the General Fund and Utility Fund accounts. G. INFORMATION TECHNOLOGY – Certain information technology acquisitions will be funded in the Information Technology Department’s budget or by debt issuance. Acquisitions may include all related professional services costs for researching and/or implementing an information technology project. Lease cost is also an eligible expense. VIII. ASSET MANAGEMENT A. INVESTMENTS – The City’s investment practices will be conducted in accordance with the City Council approved Investment Policies. B. CASH MANAGEMENT – The City’s cash flow will be managed to maximize the cash available to invest. A monthly report is provided by the Finance Director to the Assistant City Manager for presentation to the City Council. C. FIXED ASSETS AND INVENTORY – These assets will be reasonably safeguarded and properly accounted for, and prudently insured. IX. FINANCIAL CONDITION AND RESERVES A. NO OPERATING DEFICITS – Current expenditures will be paid with current revenues and prior year surplus. Deferrals, short-term loans, or one-time sources will be avoided as budget balance techniques. Reserves will be used only for emergencies or non-recurring expenditures, except when balances can be reduced because their levels exceed guideline minimums. B. INTERFUND LOANS - Non-routine interfund loans shall be made only in emergencies where other temporary sources of working capital are not available and with the approval of the City Council. At the time an interfund loan is considered, a plan to repay it prior to fiscal year end shall also be considered. A fund will only lend money that it will not need to spend in the immediate future. A loan may be made from a fund only if the fund has ending resources in excess of the minimum requirement for the fund. Total interfund loans outstanding from a fund shall not exceed 15% of the target fund balance for the fund. If any interfund loan is to be repaid from the proceeds of a future debt issue, a proper reimbursement resolution will be approved at the time the loan is authorized. 60 189 C. OPERATING RESERVES – in accordance with GASB-54, it is the policy of the City of The Colony to classify fund balances as Non-spendable, Restricted, Committed, Assigned, or Unassigned and develop policy for establishment and activity of each classification. Non-spendable fund balance is (a) not in a spendable form such as prepaid items or (b) legally or contractually required to be maintained intact as an endowment. Restricted fund balance consists of amounts that can be spent only on the specific purposes stipulated by law or by the external providers of those resources. Committed fund balances are self-imposed limitations set in place prior to the end of the fiscal year. These amounts can be used only for specific purposes determined by a formal action of the City Council and require the same level of formal action to remove the constraint. Assigned fund balance consists of amounts that are subject to a purpose constraint that represents an intended use established by the City Council. The purpose of the assignment must be narrower than the purpose of the General Fund. Additionally, this category is used to reflect the appropriation of a portion of existing fund balance to eliminate a projected deficit in the subsequent year’s budget. Unassigned fund balance represents the residual classification of fund balance and includes all spendable amounts not contained within other classifications. Restricted, Committed, and Assigned fund balance expenditures require prior Council approval. (1) Policy on Committing Funds: It is the policy of the City of The Colony that fund balance amounts will be reported as “Committed Fund Balance” only after formal action and approval by City Council. The action to constrain amounts in such a manner must occur prior to year-end; however, the actual dollar amount may be determined in a subsequent period. After approval by the City Council, the amount reported a Committed Fund Balance cannot be reversed without Council approval. (2) Policy of Assigning Funds: Funds that are intended to be used for a specific purpose but have not received the formal approval by Council may be recorded as Assigned Fund Balance. It is the policy of the City of The Colony that fund balance amounts will be reported as “Assigned Fund Balance” only after the City Manager has assigned those amounts based on intentions for use of the City Council. (3) Policy on Unassigned General, Parks, and Utility Fund balances: It is the goal of the City to achieve and maintain an unassigned General Fund, Parks Fund, and Utility Fund balance equal to 60 days of expenditures. The required minimum fund balance of 60 days of expenditures is to provide working capital needs in emergencies. The 60 days fund balance is considered as committed fund balance in the General Fund and is approved by the City Council via the resolution adopting this policy. To the extent reasonably possible, in the event that the General fund balance is drawn down below the target level, it will be replenished by the following fiscal year. 61 190 (4)Order of fund expenditure When multiple categories of fund balance are available for expenditure, the City will first spend the most restricted category of funds. Normally, this will result in the use of committed, then restricted, and lastly, unassigned fund balances. Failure to meet these standards will be disclosed to the City Council as soon as the situation is recognized and a plan to replenish the ending resources over a reasonable time frame shall be adopted. D.RISK MANAGEMENT PROGRAM – The City will aggressively pursue every opportunity to provide for the public’s and City employees’ safety and to manage its risks. D.LOSS FINANCING – All reasonable options will be investigated to finance losses. Such options may include risk transfer, insurance, and risk retention. E.ENTERPRISE FUND SELF-SUFFICIENCY – The City’s enterprise funds resources will be sufficient to fund operating and capital expenditures. The enterprise funds will pay (where applicable) their fair share of general and administrative expenses in lieu of property taxes and/or franchise fees. If an enterprise fund is temporarily unable to pay all expenses, then the City Council may waive general and administrative expenses in lieu of property taxes and/or franchise fees until the fund is able to pay them. X.DEBT MANAGEMENT A.GENERAL – The City’s borrowing practices will be conducted in accordance with the City Council approved Debt Management Policies. B.SELF-SUPPORTING DEBT - When appropriate, self-supporting revenues will pay debt services in lieu of tax revenues. C.ANALYSIS OF FINANCING ALTERNATIVES – The City will explore all financing alternatives in addition to long-term debt including leasing, grants and other aid, developer contributions, impact fees, and use of reserves or current monies. D.VOTER AUTHORIZATION – The City shall obtain voter authorization before issuing General Obligation Bonds as required by law. In general, voter authorization is not required for the issuance of Revenue Bonds and Certificates of Obligation. XI.STAFFING AND TRAINING A.ADEQUATE STAFFING – Staffing levels will be adequate for the fiscal functions of the City to function effectively. Workload shedding alternatives will be explored before adding staff. B.TRAINING - The City will support the continuing education efforts of all financial staff including the investment in time and materials for maintaining a current perspective concerning financial issues. Staff will be held accountable for communicating, 62 191 teaching, and sharing with other staff members all information and training materials acquired from seminars, conferences, and related education efforts. C.AWARDS, CREDENTIALS – The City will support efforts and involvements which result in meeting standards and receiving exemplary recitations on behalf of any of the City’s fiscal policies, practices, processes, products, and personnel. Staff certifications may include Certified Public Accountant, Certified Management Accountant, Certified Internal Auditor, Certified Payroll Professional, Certified Government Finance Officer, Professional Public Buyer, Certified Cash Manager, and others as approved by the City Manager upon recommendation of the Finance Director. XII.GRANTS FINANCIAL MANAGEMENT A.GRANT SOLICITATION – The City will stay informed about available grants and will apply for any, which would be cost/beneficial and meet the City’s objectives. B.RESPONSIBILITY – Departments will oversee the day to day operations of grant programs, will monitor performance and compliance, and will also keep Finance Department contacts informed of significant grant-related plans and activities. Departments will also report re-estimated annual grant revenues and expenses to the Finance Department after the second quarter of each year. Finance Department staff members will serve as liaisons with grantor financial management personnel, and will keep the book of accounts for all grants. XIII.ANNUAL REVIEW & REPORTING A.These Policies will be reviewed administratively by the City Manager at least annually, and will be presented to the City Council for confirmation of any significant changes. B.The Finance Director will report annually to the City Council on compliance with these policies. 63 192 CITY OF THE COLONY THE COLONY ECONOMIC DEVELOPMENT CORPORATION THE COLONY COMMUNITY DEVELOPMENT CORPORATION INVESTMENT POLICY September 3rd, 2024 Prepared by the Finance Department Confirmed by the City Council on September 17th, 2024 64 193 THE COLONY INVESTMENT POLICY TABLE OF CONTENTS PAGE I. SCOPE OF POLICY 1 A. Funds Included 1 B. Funds Excluded 1 C. Pooling of Funds 1 D. Additional Requirements 1 II. PRUDENCE 1 III. OBJECTIVES OF POLICY 2 A. Safety 2 B. Liquidity 2 C. Public Trust/Transparency 2 D. Yield 2 IV. RESPONSIBILITY AND CONTROL 3 A. Delegation 3 B. Investment Officers 3 C. Conflicts of Interest 3 D. Disclosure 3 E. Investment Training 3 V. AUTHORIZED INVESTMENTS 4 VI. INVESTMENT REPORTS 4 VII. PORTFOLIO AND INVESTMENT ASSET PARAMETERS 4 A. Bidding Process for Investments 4 B. Maximum Maturities 5 C. Maximum Dollar-Weighted Maturity 5 D. Diversification 5 E. Performance Standards 5 VIII. SELECTION OF DEPOSITORY, BROKER/DEALERS, AND INVESTMENT ADVISORS 6 A. Depository Solicitation Process 6 B. Insurability 6 C. Investment Advisors 6 IX. COLLATERALIZATION 6 A. Insurance or Collateral Pledged 6 B. Collateral Defined 6 C. Audit of Pledged Collateral 7 65 194 PAGE X. SAFEKEEPING AND CUSTODY OF INVESTMENT ASSETS 7 XI. MANAGEMENT AND INTERNAL CONTROLS 7 XII. INVESTMENT POLICY ADOPTION 8 XIII. INVESTMENT STRATEGY 8 A. Operating Funds 9 APPENDIX A Authorized Government Pools 9 66 195 THE COLONY INVESTMENT POLICY I. SCOPE OF POLICY This Investment Policy shall govern the investment activities of all funds of the City of The Colony, The Colony Economic Development Corporation, and The Colony Community Development Corporation (collectively herein referred to as “THE COLONY”), excluding any specific funds cited hereafter. This Policy serves to satisfy the state statutory requirement to define and adopt a formal investment policy. A. FUNDS INCLUDED: All financial assets of all current funds of THE COLONY and any new funds created in the future, unless specifically exempted, will be administered in accordance with this Policy. These funds are accounted for in the City’s Annual Financial Report and may include: General Fund, Enterprise Funds, Capital Project Funds, Special Revenue Funds, Trust and Agency Funds. B. FUNDS EXCLUDED: This Policy excludes Employee Retirement and Pension Funds administered or sponsored by THE COLONY and excludes bond funds held in trust escrow accounts. THE COLONY will maintain responsibility for these funds as required by Federal and State law and Charters and Codes. C. POOLING OF FUNDS: Except for cash in certain restricted and special funds, THE COLONY will consolidate cash balances from all funds to optimize potential investment earnings. Investment income will be allocated to the various funds based on their respective percentage participation and in accordance with the generally accepted accounting principles. D. ADDITIONAL REQUIREMENTS: In addition to this Policy, bond funds (to include capital project, debt service, and reserve funds) will be managed by the governing debt ordinance and the provisions of the Internal Revenue Code applicable to the issuance of tax-exempt obligations and the investment of debt proceeds. II. PRUDENCE Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of the capital as well as the probable income to be derived. The standard of prudence to be used by Investment Officers shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio of funds, rather than a consideration as to the prudence of a single investment. Investment Officers acting in accordance with written procedures and this Investment Policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion to the City Manager, and the City Council, and appropriate action is taken by the 67 196 Investment Officers and their oversight managers to control adverse developments in accordance with the terms of this Policy. III. OBJECTIVES OF POLICY The primary objectives of THE COLONY’s investment program in order of priority shall be preservation and safety of principal, liquidity, public trust, and yield. A. SAFETY: The foremost and primary objective of THE COLONY’s investment program is the preservation and safety of capital. Each investment transaction will seek first to ensure that capital losses are avoided, whether the loss occurs from the default of a security or from erosion of market value. The objectives will be to mitigate credit risk and interest rate risk. To control credit risk, investments should be limited to the safest types of investments. Financial institutions, broker/dealers and advisors who serve as intermediaries, shall be pre-qualified by THE COLONY. The credit ratings of investment pools and individual securities will be monitored to assure compliance with this Policy and State law. To control interest rate risk, THE COLONY will structure the investment portfolio so that investments mature to meet cash requirements for ongoing operations and will regularly monitor marketable securities. Should an issuer experience a downgrade of its credit rating by a nationally recognized credit rating agency below the required minimum rating, all prudent measures will be taken to liquidate the investment. B. LIQUIDITY: THE COLONY’s investment portfolio will remain sufficiently liquid to enable THE COLONY to meet operating requirements that might be reasonably anticipated. Liquidity will be achieved by maintaining adequate cash equivalent balances, matching investment maturities with forecasted cash flow funding requirements, and by diversifying maturities. Furthermore, since all possible cash demands cannot be anticipated, the portfolio, or portions thereof may be placed in bank accounts, money market mutual funds or local government investment pools, which offer same day liquidity. C. PUBLIC TRUST/TRANSPARENCY: Investment Officers shall seek to act responsibly as the custodians of public trust. Investment Officers shall avoid any transaction that might impair public confidence in THE COLONY’s ability to govern effectively. To increase public trust and transparency, the Investment Policy will limit investments to those easily understood. Investments are limited to money market accounts of the Depository Bank and local governmental investment pools, and certificates of deposit of up to 1 year in maturity as described below in section V. Authorized Investments. D. YIELD: THE COLONY’s investment portfolio will be designed with the objective of regularly meeting or exceeding the optimum rate of return of a reasonable benchmark considering the risk, liquidity, and transparency constraints. Investment Officers will seek to preserve principal, maintain liquidity levels needed, maintain as much transparency as possible and optimize the yield of these funds. 68 197 However, it is understood that if the yield achieved by THE COLONY is higher than the arbitrage yield, positive arbitrage income will be rebated to the federal government as required by current federal regulations. IV. RESPONSIBILITY AND CONTROL A. DELEGATION: The Director of Finance has oversight management responsibility to establish written procedures and controls for the operation of the investment program, consistent with this Investment Policy. Such procedures shall include explicit delegation of authority to persons responsible for the daily cash management operation, execution of investment transactions, overall portfolio management, and investment reporting. The Director of Finance shall be responsible for all transactions undertaken, and shall establish a system of controls to regulate the activities of the Investment Officers. B. INVESTMENT OFFICERS: The Director of Finance and Assistant Finance Director are the “Investment Officers” of THE COLONY. No person shall engage in an investment transaction except as provided under the terms of this Policy and the procedures established by the Director of Finance. C. CONFLICTS OF INTEREST: Investment Officers and employees involved in the investment process will refrain from personal business activity that could conflict with proper execution and management of the investment program, or which could impair their ability to make impartial investment decisions. Investment Officers and employees involved in the investment process shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of THE COLONY. D. DISCLOSURE: Investment Officers shall disclose to the City Manager, City Council, Boards of Directors, and the Texas Ethics Commission any financial interests in financial institutions or any relationship within the second degree by affinity or consanguinity to an individual that conducts business with THE COLONY. All Investment Officers shall further disclose any large personal financial investment positions that could be related to the performance of THE COLONY’s portfolio. Investment Officers shall subordinate their personal investment transactions to those of this jurisdiction, particularly with regard to the timing of purchases and sales. E. INVESTMENT TRAINING: In order to ensure qualified and capable investment management, the Director of Finance, the Assistant Finance Director, and any other Investment Officers shall have a finance, accounting, or related degree and knowledge of treasury functions. Additionally, Investment Officers must attend investment training not less than once in a two-year period that begins on the first day of the fiscal year and consists of two consecutive fiscal years after that date and receive not less than 10 hours of instruction relating to investment responsibilities. This investment training may be from educational seminars held by Government Finance Officers Association (GFOA), 69 198 Government Treasurers Organization of Texas (GTOT), Government Finance Officers Association of Texas (GFOAT), American Institute of Certified Public Accountants (AICPA), University of North Texas (UNT), North Central Texas Council of Governments (NCTCOG), and Texas Municipal League (TML). All Investment Officers of THE COLONY shall attend at least one training session relating to their cash management and investment responsibilities within 12 months after assuming these duties for THE COLONY. Training must include education in investment controls, security risks, strategy risks, market risks, and compliance with state investment statutes. V. AUTHORIZED INVESTMENTS Funds of THE COLONY may be invested in the following investments, as authorized by Chapter 2256 of the Government Code of the State of Texas, known as the “Public Funds Investment Act”, and as authorized by this Investment Policy. Investments not specifically listed below are not authorized: A. Money Market Mutual Funds of Local Government Joint Investment Pools established and operating in compliance with the Public Funds Investment Act, and are continuously rated no lower than AAA-m or an equivalent rating by at least one nationally recognized rating service, have a dollar-weighted average maturity of 60 days or less, and invest only in obligations listed in the Public Funds Investment Act. B. Money Market Deposit accounts with bank depository. C. Certificates of Deposits that are issued by a state or national bank that has its main office or branch office in the State of Texas and that a) which are guaranteed or insured by the Federal Deposit Insurance Corporation, b) are secured in compliance with Section IX Collateralization, or c) are executed through a depository institution that has its main office or a branch office in this State that participates in the Certificate of Deposit Account Registry Service (CDARS) and meet the requirements of the Public Funds Investment Act. D. Insured Cash Shelter Accounts executed through a trustee bank that has its main office or a branch office in this State. Only those investments specifically listed in this Policy are authorized. VI. INVESTMENT REPORTS The Director of Finance shall submit quarterly an investment report in compliance with the Public Funds Investment Act. This report will be prepared in a manner, which will allow THE COLONY to ascertain whether investment activities during the reporting period have conformed to the Investment Policy. The report should be provided to the City Council, Boards of Directors, and the City Manager. The reports shall be formally reviewed at least annually by an independent auditor in conjunction with the annual audit. The result of the review shall be reported to the City Council and Boards of Directors by that auditor. The quarterly investment report must be presented within 90 days of the end of the quarter reporting period. The Director of Finance is responsible for the recording of investment transactions and the maintenance of the investment records with reconciliation of the accounting records of investments carried out by the Assistant Finance Director. Information to maintain the investment 70 199 program and the reporting requirements is derived from various sources such as broker/dealer research reports, newspapers, financial on-line market quotes, communication with broker/dealers, government investment pools, and financial consulting services. VII. PORTFOLIO AND INVESTMENT ASSET PARAMETERS A. BIDDING PROCESS FOR INVESTMENTS: Investment Officers for THE COLONY shall solicit bids or quotes for certificates of deposit, or other financial institution deposit accounts either orally, in writing, electronically, or in any combination of these methods. The Investment Officers will strive to create a competitive pricing environment for all portfolio transactions. B. MAXIMUM MATURITIES: THE COLONY will manage its investments to meet anticipated cash flow requirements. THE COLONY will not directly invest in certificate of deposits maturing more than one year from the date of purchase. C. MAXIMUM DOLLAR-WEIGHTED AVERAGE MATURITY: The maximum dollar-weighted average maturity based on the stated final maturity, authorized by this Investment Policy for the composite portfolio of THE COLONY, shall be 9 months. D. DIVERSIFICATION: It is the Policy of THE COLONY to diversify its investment portfolios. Assets held in each investment portfolio shall be diversified to eliminate the risk of loss resulting from concentration of assets in a specific maturity or specific issuer. In establishing specific diversification strategies, the following general policies and constraints shall apply: 1) CD maturities and shall be staggered in a way that protects interest income from the volatility of interest rates and that avoids undue concentration of assets in a specific maturity or Institution. Investments shall be selected which provide for stability of income and adequate liquidity. E. PERFORMANCE STANDARDS: The investment portfolio will be managed in accordance with the objectives specified within this Policy. 71 200 VIII. SELECTION OF DEPOSITORY, BROKER/DEALERS, AND INVESTMENT ADVISORS A. DEPOSITORY SOLICITATION PROCESS: Primary depositories shall be selected through THE COLONY’s banking services procurement process, which shall include a formal request for proposal (RFP) issued not less than every five years. In selecting primary depositories, the credit worthiness of institutions shall be considered. No public deposit shall be made except in a qualified public depository as established by state depository laws. THE COLONY may also establish agreements with other financial institutions under separate contract for additional services which are necessary in the administration, collection, investment, and transfer of municipal funds. Such deposits will only be made after the financial institution has completed and returned the required written instruments and depository pledge agreements. B. INSURABILITY: Banks seeking to establish eligibility for THE COLONY’s deposits, shall submit financial statements, evidence of federal insurance, and other information as required by the Investment Officers of THE COLONY. C. INVESTMENT ADVISORS: Investment Advisors shall adhere to the spirit, philosophy and specific term of this Policy and shall advise within the same “Standard of Care”. Selected Investment Advisors must be registered under the Investment Advisors Act of 1940 or with the State Securities Board. A contract with an Investment Advisor may not be for a term longer than two years and must be approved by the City Council, including any renewals or extensions. IX. COLLATERALIZATION A. INSURANCE OR COLLATERAL PLEDGED: Collateralization shall be required on depository bank deposits and certificates of deposit, in accordance with the “Public Funds Collateral Act” and depository laws. With the exception of deposits secured with irrevocable letters of credit at 100% of amount, the collateralization level will not be less than 102% of market value of principal and accrued interest, less any FDIC insurance. Evidence of the pledged collateral shall be documented by a tri-party custodial or a master repurchase agreement with the eligible collateral pledged clearly listed in the agreement. Collateral shall be monitored at least monthly to ensure that the market value of the securities pledged equals or exceeds the related deposit or investment balance. B. COLLATERAL DEFINED: THE COLONY shall only accept, as depository or investment collateral, letters of credit issued by the FHLB or investments stipulated by the Federal Treasury Office of the Comptroller of the Currency, Title 12 - Banks and Banking, Paragraph 9.11. 72 201 C. AUDIT OF PLEDGED COLLATERAL: All collateral shall be subject to verification and audit by the Director of Finance. X. SAFEKEEPING AND CUSTODY OF INVESTMENT ASSETS All security transactions, including collateral for repurchase agreements, entered into by THE COLONY shall be conducted using the delivery vs. payment (DVP) basis. That is, funds shall not be wired or paid until verification has been made that the correct security has been received by the safekeeping bank. The safekeeping bank is responsible for matching up instructions from THE COLONY’s Investment Officers on an investment settlement with what is wired from the broker/dealer, prior to releasing THE COLONY’s designated funds for a given purchase. The security shall be held in the name of THE COLONY or held on behalf of THE COLONY in a bank nominee name. Securities will be held by a third party custodian designated by the Director of Finance and evidenced by safekeeping receipts. The safekeeping bank’s records shall assure the notation of THE COLONY’s ownership of or explicit claim on the securities. The original copy of all safekeeping receipts shall be delivered to THE COLONY. A safekeeping agreement must be in place, which clearly defines the responsibilities of the safekeeping bank. Wires or ACH transactions to and from government investment pools, financial institution deposits, and money market mutual funds are the only exceptions to the DVP method of settlement. XI. MANAGEMENT AND INTERNAL CONTROLS The Director of Finance shall establish a system of internal controls which shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees or Investment Officers of THE COLONY. Controls and managerial emphasis deemed most important that shall be employed where practical are: A. Control of collusion. B. Separation of duties. C. Separation of transaction authority from accounting and record keeping. D. Custodian safekeeping receipts records management. E. Avoidance of bearer-form securities. F. Clear delegation of authority. G. Documentation of investment bidding events. H. Written confirmations from broker/dealers and financial institutions. I. Reconcilements and comparisons of security receipts with the investment records. 73 202 J. Compliance with investment policies. K. Accurate and timely investment reports as required by law and this Policy. L. Validation of investment maturity decisions with supporting cash flow data. M. Adequate training and development of Investment Officers. N. Verification of all investment income and security purchase and sell computations. O. Review of financial condition of all broker/dealers, and depository institutions. P. Information about market conditions, changes, and trends that require adjustments in investment strategies. The above list of internal controls represents only a partial list of a system of internal controls. In conjunction with the annual audit, a process of independent review by an external auditor shall be established. XII. INVESTMENT POLICY ADOPTION THE COLONY’s Investment Policy shall be adopted by resolution of the City Council and Boards of Directors. The Policy and general investment strategy statements shall be reviewed on an annual basis by the City Council and Boards of Directors, and any modifications made thereto must be approved by them. XIII. INVESTMENT STRATEGY Effective investment strategy development coordinates the primary objectives of THE COLONY’s Investment Policy and cash management procedures. Cash management to increase the available “investment period” will be employed when necessary to enhance the ability of THE COLONY to earn interest income. Maturity selections shall be based on cash flow and market conditions to take advantage of interest rate cycles. THE COLONY’s portfolio shall be designed and managed in a manner responsive to the public trust and consistent with the Investment Policy. Each major fund type has varying cash flow requirements and liquidity needs. Therefore specific strategies shall be implemented considering the Fund’s unique requirements. THE COLONY funds shall be analyzed and invested according to the following major fund types: A. Operating Fund B. Capital Project Funds and Special Purpose Funds C. Debt Service Funds D. Bond Reserve Funds 74 203 OVERALL STRATEGY: THE COLONY’s basic investment strategy is to utilize investment options that represent suitable risk/return alternatives for excess operating reserves which are easily understood by the public. Therefore, investment of excess operating funds shall seek to preserve principal and promote transparency by restricting authorized investment instruments to those investments which are easily understood with suitable and limited credit and market risk. Liquidity will be maintained by utilizing projected cash flow needs to limit investment maturities and targeting minimum cash balances. Investment marketability will be maintained based on the fund-type strategies to sufficiently and reasonably assure that investments could be liquidated prior to the maturity, if cash needs dictate. THE COLONY shall also diversify its investment portfolio. Whenever practical, assets held in the investment portfolio shall minimize the risk of loss resulting from concentration of assets in a specific maturity or specific issuer. THE COLONY will group investment instruments into “fund-type investment groups.” These groups will reflect similar needs as to maturity limits, diversity, and liquidity. THE COLONY funds shall seek to achieve a competitive yield appropriate for each strategy. Yield objectives shall at all times be subordinate to the objectives of safety, liquidity and transparency. Tax-exempt debt proceeds shall be invested to optimize the interest earnings retained by THE COLONY, while at the same time fully complying with all applicable State laws and federal regulations, including the arbitrage rebate regulations. A. OPERATING FUNDS: Operating Funds shall have as their primary objective to assure safety of principal. The secondary objective is to assure that anticipated cash outflows are matched with adequate investment liquidity. The secondary objective is to create a portfolio structure, which will experience minimal volatility during changing economic cycles. Objectives may be accomplished by investing in money market accounts of the depository bank or government investment pools or bank certificates of deposits. APPENDIX A AUTHORIZED LOCAL GOVERNMENT INVESTMENT POOLS TEXPOOL/TEXPOOL PRIME (Texas Local Government Investment Pools) LOGIC (Local Government Investment Cooperative) TEXASTERM/TEXASDAILY (Local Government Investment Pools) 75 204 Agenda Item No:5.5 CITY COUNCIL Agenda Item Report Meeting Date: September 3, 2024 Submitted by: Latonjia Williams Submitting Department: Finance Item Type: Discussion Agenda Section: Subject: Conduct a public hearing and discuss the proposed 2024-2025 tax rate not to exceed $0.635000 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 17th, 2024 at 6:30 p.m. at The Colony City Hall, 6800 Main Street. (Miller/L. Williams) Suggested Action: Attachments: 205 Agenda Item No:5.6 CITY COUNCIL Agenda Item Report Meeting Date: September 3, 2024 Submitted by: Latonjia Williams Submitting Department: Finance Item Type: Discussion Agenda Section: Subject: Discuss and consider all matters incident and related to the issuance and sale of “City of The Colony, Texas, Combination Tax and Limited Surplus Revenue Certificates of Obligation, Series 2024”, including the adoption of an ordinance authorizing the issuance of such certificates of obligation. (Miller/L. Williams) Suggested Action: Attachments: Ord. 2024 - XXXX Certificates of Obligation Series 2024 206 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2024 - _____ AN ORDINANCE authorizing the issuance of “CITY OF THE COLONY, TEXAS, COMBINATION TAX AND LIMITED SURPLUS REVENUE CERTIFICATES OF OBLIGATION, SERIES 2024”; providing for the payment of said certificates of obligation by the levy of an ad valorem tax upon all taxable property within the City and a limited surplus pledge of the City’s waterworks and sewer system; specifying the terms and conditions of such certificates of obligation; resolving other matters incident and relating to the issuance, payment, security, sale, and delivery of said certificates of obligation, including the approval and execution of a Paying Agent/Registrar Agreement and the approval and distribution of a Preliminary Official Statement and an Official Statement; and providing an effective date. WHEREAS, notice of the City Council’s intention to issue certificates of obligation (the “Notice”) in the maximum principal amount of $37,260,000 for the purpose of paying contractual obligations to be incurred for (i) constructing, improving and renovating streets, alleys, culverts and bridges, including drainage and erosion control, landscaping, screening walls, curbs, gutters, sidewalks, lighting, signage and traffic signalization incidental thereto and the acquisition of land, equipment and rights-of-way therefor, (ii) constructing, improving and equipping the City’s waterworks and sewer system and the acquisition of land and rights-of-way therefor, (iii) the acquisition of equipment, vehicles and trailers for public safety facilities, (iv) constructing, improving, renovating and equipping the City’s animal shelter, (v) the acquisition and installation of information technology systems equipment for the City, (vi) renovating, improving and equipping existing buildings housing the governmental functions of the City, (vii) constructing drainage improvements and the acquisition of equipment, land and rights-of-way therefor, (viii) acquisition and installation of fleet services maintenance equipment and (ix) professional services rendered in connection therewith, has been duly published in The Dallas Morning News, a newspaper of general circulation in the City of The Colony, Texas on July 7, 2024 and July 14, 2024, the date the first publication of such notice being not less than forty-six (46) days prior to the tentative date stated therein for the passage of the ordinance authorizing the issuance of such certificates; and WHEREAS, the City Council hereby finds and determines that the time period for qualified voters of the City to submit a petition as authorized by Section 271.049, Texas Local Government Code has remained open from the date of the adoption of the resolution authorizing the giving of the Notice to the date hereof; and WHEREAS, no petition protesting the issuance of the certificates of obligation described in the Notice, signed by at least 5% of the qualified electors of the City, has been presented to or filed with the City Secretary or Deputy City Secretary on or prior to the date of the passage of this Ordinance; and WHEREAS, the City Council hereby finds and determines that $______ principal amount of the certificates of obligation described in the Notice should be authorized at this time; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: 207 202323571.2/10013085912 2 Section 1.Authorization - Designation - Principal Amount - Purpose. Certificates of obligation of the City shall be and are hereby authorized to be issued in the aggregate principal amount of $_______, to be designated and bear the title “CITY OF THE COLONY, TEXAS, COMBINATION TAX AND LIMITED SURPLUS REVENUE CERTIFICATES OF OBLIGATION, SERIES 2024” (hereinafter referred to as the “Certificates”), for the purpose of paying contractual obligations to be incurred for (i) constructing, improving and renovating streets, alleys, culverts and bridges, including drainage and erosion control, landscaping, screening walls, curbs, gutters, sidewalks, lighting, signage and traffic signalization incidental thereto and the acquisition of land, equipment and rights-of-way therefor, (ii) constructing, improving and equipping the City’s waterworks and sewer system and the acquisition of land and rights-of-way therefor, (iii) the acquisition of equipment, vehicles and trailers for public safety facilities, (iv) constructing, improving, renovating and equipping the City’s animal shelter, (v) the acquisition and installation of information technology systems equipment for the City, (vi) renovating, improving and equipping existing buildings housing the governmental functions of the City, (vii) constructing drainage improvements and the acquisition of equipment, land and rights-of-way therefor, (viii) acquisition and installation of fleet services maintenance equipment and (ix) professional services rendered in connection therewith, all in accordance with the authority conferred by, and in conformity with, the Constitution and laws of the State of Texas, including Texas Local Government Code, Subchapter C of Chapter 271, as amended. Section 2.Fully Registered Obligations - Certificate Date - Authorized Denominations - Stated Maturities - Interest Rates. The Certificates are issued as fully registered obligations only, shall be dated September 1, 2024 (the “Certificate Date”), and shall be in denominations of $5,000 or any integral multiple thereof (within a Stated Maturity), and the Certificates shall become due and payable on February 15 in each of the years and in principal amounts (the “Stated Maturities”) and bear interest at the per annum rate(s) in accordance with the following schedule: Year of Stated Maturity Principal Amount ($) Interest Rate (%) 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 208 202323571.2/10013085913 3 The Certificates shall bear interest on the unpaid principal amounts from the date of the initial delivery of the Certificates at the rate(s) per annum shown above (calculated on the basis of a 360-day year consisting of twelve 30-day months) and shall be payable on February 15 and August 15 in each year until maturity or prior redemption, commencing February 15, 2025. Section 3.Terms of Payment - Paying Agent/Registrar. The principal of, premium, if any, and the interest on the Certificates, due and payable by reason of maturity, redemption or otherwise, shall be payable only to the registered owners or holders of the Certificates (hereinafter called the “Holders”) appearing on the registration and transfer books maintained by the Paying Agent/Registrar. Such payments shall be payable, without exchange or collection charges, to the Holder in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. The selection and appointment of U.S. Bank Trust Company, National Association, Dallas, Texas, to serve as Paying Agent/Registrar for the Certificates is hereby approved and confirmed. Books and records relating to the registration, payment, transfer and exchange of the Certificates (the “Security Register”) shall at all times be kept and maintained on behalf of the City by the Paying Agent/Registrar, as provided herein and in accordance with the terms and provisions of a “Paying Agent/Registrar Agreement”, substantially in the form attached hereto as Exhibit A and such reasonable rules and regulations as the Paying Agent/Registrar and the City may prescribe. The Mayor or Mayor Pro Tem and City Secretary or Deputy City Secretary are authorized to execute and deliver such Paying Agent/Registrar Agreement in connection with the delivery of the Certificates. The City covenants to maintain and provide a Paying Agent/Registrar at all times until the Certificates are paid and discharged; and, any successor Paying Agent/Registrar shall be a commercial bank, trust company, financial institution, or other entity duly qualified and legally authorized to serve in such capacity and perform the duties and services of Paying Agent/Registrar. Upon any change in the Paying Agent/Registrar for the Certificates, the City agrees to promptly cause a written notice thereof to be sent to each Holder by United States mail, first-class, postage prepaid; which notice shall also give the address of the new Paying Agent/Registrar. Principal of and premium, if any, on the Certificates, shall be payable at the Stated Maturities or upon prior redemption thereof only upon presentation and surrender of the Certificates to the Paying Agent/Registrar at its designated offices, initially in St. Paul, Minnesota, or, with respect to a successor Paying Agent/Registrar, at the designated offices of such successor (the “Designated Payment/Transfer Office”). Interest on the Certificates shall be paid only to the Holders whose names appear in the Security Register at the close of business on the Record Date (the last business day of the month next preceding the interest payment date) and shall be paid by the Paying Agent/Registrar (i) by check sent by United States Mail, first-class, postage prepaid, to the address of the registered owner recorded in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested by and at the risk and expense of the Holder. If the date for the payment of the principal of or interest on the Certificates shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the city where the Designated Payment/Transfer Office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when such banking institutions are authorized to close, and payment on such date shall have the same force and effect as if made on the original date payment was due. In the event of a non-payment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a “Special Record Date”) will be 209 202323571.2/10013085914 4 established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first-class, postage prepaid, to the address of each Holder appearing on the Security Registrar at the close of business on the last business day next preceding the date of mailing of such notice. Section 4.Redemption. (a)Optional Redemption. The Certificates maturing on or after February 15, 2035 shall be subject to redemption prior to maturity, at the option of the City, in whole or in part, in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar) on February 15, 2034 or any date thereafter, at the redemption price of par plus accrued interest from the most recent interest payment date on which interest has been paid or duly provided for to the date of redemption. At least forty-five (45) days prior to an optional redemption date for the Certificates (unless a shorter notification period shall be satisfactory to the Paying Agent/Registrar), the City shall notify the Paying Agent/Registrar of the decision to redeem Certificates, the principal amount of each Stated Maturity to be optionally redeemed, and the date of redemption. (b)[Mandatory Redemption. The Certificates having Stated Maturities of February 15 in the years 20__ and 20__ (collectively, the “Term Certificates”) shall be subject to mandatory redemption in part prior to maturity at the redemption price of par and accrued interest to the date of redemption on the respective dates and in principal amounts as follows: Term Certificates due February 15, 20 Term Certificates due February 15, 20 Redemption Date Principal Amount ($)Redemption Date Principal Amount ($) February 15, 20________,000 February 15, 20__,000 February 15, 20__ (maturity)_____,000 February 15, 20__,000 February 15, 20__ (maturity),000 At least forty-five (45) days prior to the mandatory redemption date for the Term Certificates, the Paying Agent/Registrar shall select by lot the numbers of the Term Certificates to be redeemed on the next following February 15 from moneys set aside for that purpose in the Certificate Fund (as hereinafter defined). Any Term Certificate not selected for prior redemption shall be paid on the date of its Stated Maturity. The principal amount of the Term Certificates required to be redeemed on a mandatory redemption date may be reduced, at the option of the City, by the principal amount of Term Certificates which, at least fifty (50) days prior to the mandatory redemption date, (1) shall have been acquired by the City at a price not exceeding the principal amount of such Term Certificates plus accrued interest to the date of purchase thereof, and delivered to the Paying Agent/Registrar for cancellation or (2) shall have been redeemed pursuant to the optional redemption provisions set forth in paragraph (a) of this Section and not theretofore credited against a mandatory redemption requirement.] (c)Selection of Certificates for Redemption. If less than all Outstanding Certificates of the same Stated Maturity are to be redeemed on a redemption date, the Paying 210 202323571.2/10013085915 5 Agent/Registrar shall treat such Certificates as representing the number of Certificates Outstanding, which is obtained by dividing the principal amount of such Certificates by $5,000, and shall select the Certificates, or principal amount thereof, to be redeemed within such Stated Maturity by lot. (d)Notice of Redemption. Not less than thirty (30) days prior to a redemption date for the Certificates, a notice of redemption shall be sent by United States Mail, first-class, postage prepaid, in the name of the City and at the City’s expense, to each Holder of a Certificate to be redeemed in whole or in part at the address of the Holder appearing on the Security Register at the close of business on the business day next preceding the date of mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the Holder. All notices of redemption shall: (i) specify the date of redemption for the Certificates, (ii) identify the Certificates to be redeemed and, in the case of a portion of the principal amount to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state that the Certificates, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption date specified, and the interest thereon, or on the portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the redemption date, and (v) specify that payment of the redemption price for the Certificates, or the principal amount thereof to be redeemed, shall be made at the Designated Payment/Transfer Office of the Paying Agent/Registrar only upon presentation and surrender thereof by the Holder. If a Certificate is subject by its terms to prior redemption and has been called for redemption and notice of redemption thereof has been duly given as hereinabove provided, such Certificate (or the principal amount thereof to be redeemed) shall become due and payable and interest thereon shall cease to accrue from and after the specified redemption date; provided moneys sufficient for the payment of such Certificate (or of the principal amount thereof to be redeemed) at the then applicable redemption price are held for the purpose of such payment by the Paying Agent/Registrar. (e)Conditional Notice of Redemption. With respect to any optional redemption of the Certificates, unless moneys sufficient to pay the principal of and premium, if any, and interest on the Certificates to be redeemed shall have been received by the Paying Agent/Registrar prior to the giving of such notice of redemption, such notice may state that said redemption may, at the option of the City, be conditional upon the receipt of such moneys by the Paying Agent/Registrar on or prior to the date fixed for such redemption, or upon the satisfaction of any prerequisites set forth in such notice of redemption; and, if sufficient moneys are not received or such prerequisites are not satisfied, such notice shall be of no force and effect, the City shall not redeem such Certificates and the Paying Agent/Registrar shall give notice, in the manner in which the notice of redemption was given, to the effect that the Certificates have not been redeemed. Section 5.Registration - Transfer - Exchange of Certificates - Predecessor Certificates. A Security Register relating to the registration, payment, and transfer or exchange of the Certificates shall at all times be kept and maintained by the City at the Designated Payment/Transfer Office of the Paying Agent/Registrar, as provided herein and in accordance with the provisions of an agreement with the Paying Agent/Registrar and such rules and regulations as the Paying Agent/Registrar and the City may prescribe. The Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the name and address of each Holder of the Certificates issued under and pursuant to the provisions of this Ordinance. Any Certificate may, in accordance with its terms and the terms hereof, be transferred or exchanged for Certificates of other authorized denominations by the Holder, in person or by his duly authorized agent, upon surrender of such Certificate to the Paying Agent/Registrar at the 211 202323571.2/10013085916 6 Designated Payment/Transfer Office for cancellation, accompanied by a written instrument of transfer or request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. Upon the surrender for transfer of any Certificate (other than the Initial Certificate(s) authorized in Section 8 hereof) at the Designated Payment/Transfer Office of the Paying Agent/Registrar, the Paying Agent/Registrar shall register and deliver, in the name of the designated transferee or transferees, one or more new Certificates, executed on behalf of, and furnished by, the City, of authorized denominations and having the same Stated Maturity and of a like aggregate principal amount as the Certificate or Certificates surrendered for transfer. At the option of the Holder, Certificates (other than the Initial Certificate(s) authorized in Section 8 hereof) may be exchanged for other Certificates of authorized denominations and having the same Stated Maturity, bearing the same rate of interest, and of like aggregate principal amount as the Certificates surrendered for exchange upon the surrender of the Certificates to be exchanged at the Designated Payment/Transfer Office of the Paying Agent/Registrar. Whenever any Certificates are so surrendered for exchange, the Paying Agent/Registrar shall register and deliver new Certificates, executed on behalf of, and furnished by the City, to the Holder requesting the exchange. All Certificates issued upon any transfer or exchange of Certificates shall be delivered to the Holders at the Designated Payment/Transfer Office of the Paying Agent/Registrar, or sent by United States mail, first-class, postage prepaid, to the Holder and, upon the registration and delivery thereof, the same shall be valid obligations of the City, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the Certificates surrendered in such transfer or exchange. All transfers or exchanges of Certificates pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange of any tax or other governmental charges required to be paid with respect to such transfer or exchange. Certificates cancelled by reason of an exchange or transfer under this Section are hereby defined to be “Predecessor Certificates,” evidencing all or a portion, as the case may be, of the same obligation to pay evidenced by the new Certificate or Certificates registered and delivered in the exchange or transfer therefor. Additionally, the term “Predecessor Certificates” shall include any Certificate registered and delivered pursuant to Section 23 hereof in lieu of a mutilated, lost, destroyed, or stolen Certificate which shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Certificate. Neither the City nor the Paying Agent/Registrar shall be required to issue, transfer or exchange any Certificate called for redemption, in whole or in part, within forty-five (45) days of the date fixed for the redemption of such Certificate; provided, however, such limitation on transferability shall not be applicable to an exchange by the Holder of the unredeemed balance of a Certificate called for redemption in part. Section 6.Book-Entry-Only Transfers and Transactions. Notwithstanding the provisions contained in Sections 3, 4 and 5 hereof relating to the payment, and transfer/exchange of the Certificates, the City hereby approves and authorizes the use of “Book-Entry-Only” securities clearance, settlement and transfer system provided by The Depository Trust Company 212 202323571.2/10013085917 7 (“DTC”), a limited purpose trust company organized under the laws of the State of New York, in accordance with the operational arrangements referenced in the Blanket Issuer Letter of Representations by and between the City and DTC (the “Depository Agreement”). Pursuant to the Depository Agreement and the rules of DTC, the Certificates shall be deposited with DTC who shall hold said Certificates for its participants (the “DTC Participants”). While the Certificates are held by DTC under the Depository Agreement, the Holder of the Certificates on the Security Register for all purposes, including payment and notices, shall be Cede & Co., as nominee of DTC, notwithstanding the ownership of each actual purchaser or owner of each Certificate (the “Beneficial Owners”) being recorded in the records of DTC and DTC Participants. In the event DTC determines to discontinue serving as securities depository for the Certificates or otherwise ceases to provide book-entry clearance and settlement of securities transactions in general or the City decides to discontinue the use of the system of book-entry-only transfers through DTC, the City covenants and agrees with the Holders of the Certificates to cause Certificates to be printed in definitive form and issued and delivered to DTC Participants and Beneficial Owners, as the case may be. Thereafter, the Certificates in definitive form shall be assigned, transferred and exchanged on the Security Register maintained by the Paying Agent/Registrar and payment of such Certificates shall be made in accordance with the provisions of Sections 3, 4 and 5 hereof. Section 7.Execution - Registration. The Certificates shall be executed on behalf of the City by the Mayor or the Mayor Pro Tem under its seal reproduced or impressed thereon and countersigned by the City Secretary or Deputy City Secretary. The signatures of said officers and the seal of the City on the Certificates may be manual or facsimile. Certificates bearing the manual or facsimile signatures of said individuals who are or were the proper officers of the City on the Certificate Date shall be deemed to be duly executed on behalf of the City, notwithstanding that one or more of such individuals shall cease to hold such offices at the time of delivery of the Certificates to the initial purchaser(s), and with respect to Certificates delivered in subsequent exchanges and transfers, all as authorized and provided in Texas Government Code, Chapter 1201, as amended. No Certificate shall be entitled to any right or benefit under this Ordinance, or be valid or obligatory for any purpose, unless there appears on such Certificate either a certificate of registration substantially as set forth in the form provided in Section 9C, executed manually or by facsimile by the Comptroller of Public Accounts of the State of Texas or his duly authorized agent, or a certificate of registration substantially as set forth in the form provided in Section 9D, manually executed by an authorized officer, employee, or representative of the Paying Agent/Registrar, and either such certificate duly signed upon any Certificate shall be conclusive evidence, and the only evidence, that such Certificate has been duly certified, registered, and delivered. Section 8.Initial Certificate(s). The Certificates herein authorized shall be initially issued either (i) as a single fully registered certificate in the total principal amount of this series with principal installments to become due and payable as provided in Section 2 and numbered T- 1 or, alternatively, (ii) as multiple fully registered certificates, being one certificate for each year of maturity in the applicable principal amount and denomination and to be numbered consecutively from T-1 and upward (hereinafter called the “Initial Certificate(s)”) and, in either case, the Initial Certificate(s) shall be registered in the name of the initial purchaser(s) or the designee thereof. The Initial Certificate(s) shall be the Certificate(s) submitted to the Office of the Attorney General 213 202323571.2/10013085918 8 of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the initial purchaser(s). Any time after the delivery of the Initial Certificate(s), the Paying Agent/Registrar, pursuant to written instructions from the initial purchaser(s), or the designee thereof, shall cancel the Initial Certificate(s) delivered hereunder and exchange therefor definitive Certificates of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the initial purchaser(s), or the designee thereof, and such other information and documentation as the Paying Agent/Registrar may reasonably require. Section 9.Forms. A.Forms Generally. The Certificates, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Certificate of Registration of the Paying Agent/Registrar, and the form of Assignment to be printed on each of the Certificates, shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identification (including identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including insurance legends in the event the Certificates, or any maturities thereof, are purchased with insurance and any reproduction of an opinion of counsel) thereon as may, consistently herewith, be established by the City or determined by the officers executing such Certificates as evidenced by their execution thereof. Any portion of the text of any Certificate may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Certificate. The definitive Certificates and the Initial Certificate(s) shall be printed, lithographed, engraved, typewritten, photocopied, or otherwise reproduced in any other similar manner, all as determined by the officers executing such Certificates as evidenced by their execution thereof. The City may provide (i) for issuance of one fully registered Certificate for the Stated Maturity in the aggregate principal amount of such Stated Maturity and (ii) for registration of such Certificate in the name of a securities depository, or the nominee thereof. While any Certificate is registered in the name of a securities depository or its nominee, references herein and in the Certificates to the holder or owner of such Certificate shall mean the securities depository or its nominee and shall not mean any other person. B.Form of Definitive Certificates. REGISTERED REGISTERED NO. ____$__________ UNITED STATES OF AMERICA STATE OF TEXAS CITY OF THE COLONY, TEXAS COMBINATION TAX AND LIMITED SURPLUS REVENUE CERTIFICATE OF OBLIGATION SERIES 2024 Certificate Date:Interest Rate:Stated Maturity:CUSIP NO. September 1, 2024 _________%February 15, 20___________ 214 202323571.2/10013085919 9 Registered Owner: Principal Amount:DOLLARS The City of The Colony (hereinafter referred to as the “City”), a body corporate and municipal corporation in the County of Denton, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the registered owner named above, or the registered assigns thereof (the "Registered Owner"), on the Stated Maturity date specified above, the Principal Amount stated above (or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the unpaid principal amount hereof from the interest payment date next preceding the “Registration Date” of this Certificate appearing below (unless this Certificate bears a “Registration Date” as of an interest payment date, in which case it shall bear interest from such date, or unless the “Registration Date” of this Certificate is prior to the initial interest payment date in which case it shall bear interest from the date of the initial delivery of the Certificates) at the per annum rate of interest specified above computed on the basis of a 360- day year of twelve 30-day months; such interest being payable on February 15 and August 15 in each year, commencing February 15, 2025, until maturity or prior redemption. Principal of this Certificate shall be payable at its Stated Maturity or on a redemption date to the Registered Owner hereof upon presentation and surrender at the designated offices of the Paying Agent/Registrar executing the registration certificate appearing hereon, or its successor (the “Designated Payment/Transfer Office”). Interest shall be payable to the registered owner of this Certificate (or of one or more Predecessor Certificates, as defined in the Ordinance hereinafter referenced) whose name appears on the “Security Register” maintained by the Paying Agent/Registrar at the close of business on the “Record Date”, which is the last business day of the month next preceding each interest payment date and interest shall be paid by the Paying Agent/Registrar by check sent by United States mail, first-class, postage prepaid, to the address of the registered owner, recorded in the Security Register or by such other method acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. All payments of principal of, premium, if any, and interest on this Certificate shall be in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. If the date for the payment of the principal of or interest on the Certificates shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the city where the Designated Payment/Transfer Office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when such banking institutions are authorized to close, and payment on such date shall have the same force and effect as if made on the original date payment was due. This Certificate is one of the series specified in its title issued in the aggregate principal amount of $______ (herein referred to as the “Certificates”) for the purpose of paying contractual obligations to be incurred for (i) constructing, improving and renovating streets, alleys, culverts and bridges, including drainage and erosion control, landscaping, screening walls, curbs, gutters, sidewalks, lighting, signage and traffic signalization incidental thereto and the acquisition of land, equipment and rights-of-way therefor, (ii) constructing, improving and equipping the City’s waterworks and sewer system and the acquisition of land and rights-of-way therefor, (iii) the acquisition of equipment, vehicles and trailers for public safety facilities, (iv) constructing, improving , renovating and equipping the City’s animal shelter, (v) the acquisition and installation of information technology systems equipment for the City, (vi) renovating, improving and equipping existing buildings housing the governmental functions of the City, (vii) constructing drainage improvements and the acquisition of equipment, land and rights-of-way therefor, 215 202323571.2/100130859110 10 (viii) acquisition and installation of fleet services maintenance equipment and (ix) professional services rendered in connection therewith, pursuant to authority conferred by and in conformity with the Constitution and laws of the State of Texas, particularly Texas Local Government Code, Subchapter C of Chapter 271, as amended, and pursuant to an ordinance adopted by the City Council of the City (hereinafter referred to as the “Ordinance”). [The Certificates maturing on the dates hereinafter identified (collectively, the “Term Certificates”) are subject to mandatory redemption prior to maturity with funds on deposit in the Certificate Fund established and maintained for the payment thereof in the Ordinance, and shall be redeemed in part prior to maturity at the price of par and accrued interest thereon to the mandatory redemption date on the respective dates and in principal amounts as follows: The particular Term Certificates of a stated maturity to be redeemed on each redemption date shall be chosen by lot by the Paying Agent/Registrar; provided, however, that the principal amount of Term Certificates for a stated maturity required to be redeemed on a mandatory redemption date may be reduced, at the option of the City, by the principal amount of Term Certificates of like stated maturity which, at least fifty (50) days prior to the mandatory redemption date, (1) shall have been acquired by the City at a price not exceeding the principal amount of such Term Certificates plus accrued interest to the date of purchase thereof, and delivered to the Paying Agent/Registrar for cancellation or (2) shall have been redeemed pursuant to the optional redemption provisions appearing below and not theretofore credited against a mandatory redemption requirement.] The Certificates maturing on and after February 15, 2035, may be redeemed prior to their Stated Maturity, at the option of the City, in whole or in part, in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on February 15, 2034, or on any date thereafter, at the redemption price of par plus accrued interest to the date of redemption. At least thirty (30) days prior to a redemption date, the City shall cause a written notice of such redemption to be sent by United States Mail, first-class, postage prepaid, to the registered owners of each Certificate to be redeemed at the address shown on the Security Register and subject to the terms and provisions relating thereto contained in the Ordinance. If a Certificate (or any portion of its principal sum) shall have been duly called for redemption and notice of such redemption duly given, then upon the redemption date such Certificate (or the portion of its principal sum to be redeemed) shall become due and payable, and interest thereon shall cease to accrue from and after the redemption date; provided, moneys for the payment of the redemption price and the interest accrued on the principal amount to be redeemed to the date of redemption are held for the purpose of such payment by the Paying Agent/Registrar. With respect to any optional redemption of the Certificates, unless moneys sufficient to pay the principal of and premium, if any, and interest on the Certificates to be redeemed shall have been received by the Paying Agent/Registrar prior to the giving of such notice of redemption, such notice may state that said redemption may, at the option of the City, be conditional upon the receipt of such moneys by the Paying Agent/Registrar on or prior to the date fixed for such 216 202323571.2/100130859111 11 redemption, or upon the satisfaction of any prerequisites set forth in such notice of redemption; and, if sufficient moneys are not received or such prerequisites are not satisfied, such notice shall be of no force and effect, the City shall not redeem such Certificates and the Paying Agent/Registrar shall give notice, in the manner in which the notice of redemption was given, to the effect that the Certificates have not been redeemed. In the event a portion of the principal amount of a Certificate is to be redeemed and the registered owner is someone other than Cede & Co., payment of the redemption price of such principal amount shall be made to the registered owner only upon presentation and surrender of such Certificate to the Designated Payment/Transfer Office of the Paying Agent/Registrar, and a new Certificate or Certificates of like maturity and interest rate in any authorized denominations provided by the Ordinance for the then unredeemed balance of the principal sum thereof will be issued to the registered owner, without charge. If a Certificate is selected for redemption, in whole or in part, the City and the Paying Agent/Registrar shall not be required to transfer such Certificate to an assignee of the registered owner within forty-five (45) days of the redemption date; provided, however, such limitation on transferability shall not be applicable to an exchange by the registered owner of the unredeemed balance of a Certificate redeemed in part. The Certificates are payable from the proceeds of an ad valorem tax levied, within the limitations prescribed by law, upon all taxable property in the City and are additionally payable from and secured by a lien on and limited pledge of the Surplus Revenues (as described in the Ordinance) of the City’s waterworks and sewer system (the “System”), such lien and pledge, however, being junior and subordinate to the lien on and pledge of the Net Revenues (as defined in the Ordinance) of the System securing the payment of the Prior Lien Obligations (as defined in the Ordinance) currently outstanding or as may hereafter be issued by the City. In the Ordinance, the City reserves and retains the right to issue Prior Lien Obligations without limitation as to principal amount but subject to any applicable terms, conditions or restrictions under law or otherwise as well as the right to issue additional obligations payable from the same sources as the Certificates and equally and ratably secured by a parity lien on and pledge of the Surplus Revenues of the System. Reference is hereby made to the Ordinance, a copy of which is on file in the Designated Payment/Transfer Office of the Paying Agent/Registrar, and to all of the provisions of which the registered owner by the acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the tax levied for the payment of the Certificates; the properties constituting the System; the Net Revenues pledged to the payment of the principal of and interest on the Certificates; the nature, extent, and manner of enforcement of the pledge; the terms and conditions relating to the transfer or exchange of this Certificate; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the registered owners; the rights, duties, and obligations of the City and the Paying Agent/Registrar; the terms and provisions upon which the tax levy and the liens, pledges, charges, and covenants made therein may be discharged at or prior to the maturity of this Certificate, and this Certificate deemed to be no longer Outstanding; and, for the other terms and provisions thereof. Capitalized terms used herein have the meanings assigned in the Ordinance. This Certificate, subject to certain limitations contained in the Ordinance, may be transferred on the Security Register only upon its presentation and surrender at Designated Payment/Transfer Office of the Paying Agent/Registrar, with the Assignment hereon duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized agent. When a transfer on the Security Register occurs, one or more new fully registered Certificates of 217 202323571.2/100130859112 12 the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued by the Paying Agent/Registrar to the designated transferee or transferees. The City and the Paying Agent/Registrar, and any agent of either, may treat the registered owner hereof whose name appears on the Security Register (i) on the Record Date as the owner entitled to the payment of the interest hereon, (ii) on the date of surrender of this Certificate as the owner entitled to the payment of the principal hereof at its Stated Maturity, or upon its prior redemption, in whole or in part, and (iii) on any other date as the owner for all other purposes, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. In the event of a non-payment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a “Special Record Date”) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be fifteen (15) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first class postage prepaid, to the address of each registered owner appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. It is hereby certified, recited, represented, and covenanted that the City is a duly organized and legally existing municipal corporation under and by virtue of the Constitution and laws of the State of Texas; that the issuance of the Certificates is duly authorized by law; that all acts, conditions, and things required to exist and be done precedent to and in the issuance of the Certificates to render the same lawful and valid obligations of the City have been properly done, have happened, and have been performed in regular and due time, form, and manner as required by the Constitution and laws of the State of Texas, and the Ordinance; that the Certificates do not exceed any constitutional or statutory limitation; and that due provision has been made for the payment of the principal of and interest on the Certificates by the levy of a tax and a limited pledge of and lien on the Surplus Revenues of the System as stated above. In case any provision in this Certificate or any application thereof shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions and applications shall not in any way be affected or impaired thereby. The terms and provisions of this Certificate and the Ordinance shall be construed in accordance with and shall be governed by the laws of the State of Texas. IN WITNESS WHEREOF, the City Council of the City has caused this Certificate to be duly executed under the official seal of the City as of the Certificate Date. CITY OF THE COLONY, TEXAS __________________________________ [Mayor][Mayor Pro Tem] COUNTERSIGNED: ___________________________________ [City Secretary][Deputy City Secretary] 218 202323571.2/100130859113 13 (City Seal) C.Form of Registration Certificate of Comptroller of Public Accounts to Appear on Initial Certificate(s) Only. REGISTRATION CERTIFICATE OF THE COMPTROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER § § OF PUBLIC ACCOUNTS §REGISTER NO. § THE STATE OF TEXAS § I HEREBY CERTIFY that this Certificate has been examined, certified as to validity, approved by the Attorney General of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal of office this ____________________________. _________________________________ Comptroller of Public Accounts of the State of Texas (Seal) D.Form of Registration Certificate of Paying Agent/Registrar to Appear on Definitive Certificates Only. REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR This Certificate has been duly issued and registered under the provisions of the within - mentioned Ordinance; the certificate or certificates of the above entitled and designated series originally delivered having been approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar. The office of the Paying Agent/Registrar in St. Paul, Minnesota, is the Designated Payment/Transfer Office for this Certificate. U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, Dallas, Texas as Paying Agent/Registrar Registered this date: By: Authorized Signature 219 202323571.2/100130859114 14 E.Form of Assignment. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee:) (Social Security or other identifying number: ) the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints ____________________________________________ attorney to transfer the within Certificate on the books kept for registration thereof, with full power of substitution in the premises. DATED: Signature guaranteed: NOTICE: The signature on this assignment must correspond with the name of the registered owner as it appears on the face of the within Certificate in every particular. F.The Initial Certificate(s) shall be in the form set forth in paragraph (B) of this Section, except that the form of a single, fully-registered Certificate shall be modified as follows: Heading and first paragraph shall be modified as follows: REGISTERED REGISTERED NO. T-1 $_____,000 UNITED STATES OF AMERICA STATE OF TEXAS CITY OF THE COLONY, TEXAS COMBINATION TAX AND LIMITED SURPLUS REVENUE CERTIFICATE OF OBLIGATION SERIES 2024 Certificate Date: September 1, 2024 Registered Owner:____________ Principal Amount:____ MILLION _____ HUNDRED ______ THOUSAND DOLLARS The City of The Colony (hereinafter referred to as the “City”), a body corporate and municipal corporation in the County of Denton, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the registered owner named above, or the registered assigns thereof (the "Registered Owner"), the Principal Amount hereinabove stated, on February 15 in each of the years and in principal installments in accordance with the following schedule: 220 202323571.2/100130859115 15 PRINCIPAL INTEREST YEAR INSTALLMENTS ($)RATE (%) (Information to be inserted from Section 2 hereof) (or so much principal thereof as shall not have been redeemed prior to maturity) and to pay interest on the unpaid Principal Amount hereof from the date of the initial delivery of the Certificates at the per annum rates of interest specified above computed on the basis of a 360- day year of twelve 30-day months; such interest being payable on February 15 and August 15 in each year, commencing February 15, 2025, until maturity or prior redemption. Principal installments of this Certificate are payable on the Stated Maturity dates or on a redemption date to the registered owner hereof by U.S. Bank Trust Company, National Association, Dallas, Texas (the “Paying Agent/Registrar”), upon its presentation and surrender at its designated offices, initially in St. Paul, Minnesota, or, with respect to a successor paying agent/registrar, at the designated office of such successor (the “Designated Payment/Transfer Office”). Interest shall be payable to the registered owner of this Certificate whose name appears on the “Security Register” maintained by the Paying Agent/Registrar at the close of business on the “Record Date”, which is the last business day of the month next preceding the interest payment date hereof and interest shall be paid by the Paying Agent/Registrar by check sent by United States mail, first- class, postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by and at the risk and expense of the registered owner. All payments of principal of, premium, if any, and interest on this Certificate shall be in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. If the date for the payment of the principal of or interest on the Certificates shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the city where the Designated Payment/Transfer Office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when such banking institutions are authorized to close, and payment on such date shall have the same force and effect as if made on the original date payment was due. Section 10.Definitions. For purposes of this Ordinance and for clarity with respect to the issuance of the Certificates herein authorized, and the levy of taxes and appropriation of Surplus Revenues therefor, the following definitions are provided: (a)The term “Additional Obligations” shall mean tax and revenue obligations hereafter issued which by their terms are payable from ad valorem taxes and additionally payable from and secured by a lien on and pledge of the Surplus Revenues of the System of equal rank and dignity with the lien and pledge securing the payment of the Certificates. (b)The term “Certificates” shall mean the “City of The Colony, Texas, Combination Tax and Limited Surplus Revenue Certificates of Obligation, Series 2024” authorized by this Ordinance. (c)The term “Certificate Account” shall mean the special account created and established under the provisions of Section 11 of this Ordinance. (d)The term “Collection Date” shall mean, when reference is being made to the levy and collection of annual ad valorem taxes, the date the annual ad valorem taxes levied each year by the City become delinquent. 221 202323571.2/100130859116 16 (e)The term “Fiscal Year” shall mean the twelve-month operating period ending on September 30th of each year unless otherwise designated by the City. (f)The term “Government Securities” shall mean (i) direct noncallable obligations of the United States of America, including obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations unconditionally guaranteed or insured by the agency or instrumentality and, on the date of their acquisition or purchase by the City, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent, (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that, on the date of their acquisition or purchase by the City, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent and (iv) any other then authorized securities or obligations that may be used to defease obligations such as the Certificates under the then applicable laws of the State of Texas. (g)The term “Net Revenues” shall mean all income, revenues and receipts of every nature derived from and received by virtue of the operation of the System (including interest income and earnings received from the investment of moneys in the special funds or accounts created by this ordinance or ordinances authorizing the issuance of additional bonds), after deducting and paying, and making provision for the payment of, current expenses of maintenance and operation thereof, including all salaries, labor, materials, repairs and extensions necessary to render efficient service; provided, however, that only such expenses for repairs and extensions as in the judgment of the City Council, reasonably and fairly exercised, are necessary to keep the System in operation and render adequate service to the City and the inhabitants thereof, or such as might be necessary to meet some physical accident or condition which would otherwise impair any obligations payable from Net Revenues of the System shall be deducted in determining “Net Revenues”. Contractual payments for the purchase of water or the treatment of sewage shall be maintenance and operating expenses of the System to the extent provided in the contract incurred therefor and as may be authorized by statute. Depreciation shall never be considered as an expense of operation and maintenance. (h)The term “Outstanding” when used in this Ordinance with respect to Certificates means, as of the date of determination, all Certificates theretofore issued and delivered under this Ordinance, except: (1)those Certificates theretofore canceled by the Paying Agent/Registrar or delivered to the Paying Agent/Registrar for cancellation; (2)those Certificates for which payment has been duly provided by the City in accordance with the provisions of Section 25 hereof by the irrevocable deposit with the Paying Agent/Registrar, or an authorized escrow agent, of money or Government Securities, or both, in the amount necessary to fully pay the principal of, premium, if any, and interest thereon to maturity; and (3)those Certificates that have been mutilated, destroyed, lost, or stolen and for which (i) replacement Certificates have been registered and delivered in lieu thereof or (ii) have been paid, all as provided in Section 23 hereof. (i)Reserved. 222 202323571.2/100130859117 17 (j)The term “Prior Lien Obligations” shall mean all bonds or other obligations now outstanding and hereafter issued that are payable from and secured by a lien on and pledge of all or any part of the Net Revenues of the System, including but not limited to, (i) all bonds hereafter issued to refund any part of the aforesaid bonds or other obligations listed in this definition if the same are made payable from and secured by a lien on and pledge of the Net Revenues of the System, and (ii) any obligations hereafter issued on a parity (insofar as the revenues of the System are concerned) with such Prior Lien Obligations or refunding bonds issued to refund such obligations if the same are made payable from and secured by a lien on and pledge of the Net Revenues of the System. (k)The term “Surplus Revenues” shall mean available Net Revenues of the System remaining after the payment of all debt service, reserve and other requirements in connection with the City’s revenue bonds or other obligations, now or hereafter outstanding, including but not limited to the Prior Lien Obligations, which are payable from all or any part of such Net Revenues. (l)The term “System” shall mean the City’s existing waterworks and sewer system, including all properties (real, personal or mixed and tangible or intangible) owned, operated, maintained and vested in the City for the supply, treatment and distribution of treated water for domestic, commercial, industrial and other uses, and the collection and treatment of water carried wastes, and future additions, extensions, replacements and improvements thereto. Section 11.Certificate Account. For the purpose of paying the interest on and to provide a sinking fund for the payment and retirement of the Certificates, there shall be and is hereby created a special fund or account to be designated “SPECIAL 2024 COMBINATION TAX AND LIMITED SURPLUS REVENUE CERTIFICATE OF OBLIGATION ACCOUNT” (the “Certificate Account”), which fund or account shall be maintained on the records of the City and deposited in a special fund maintained at an official depository of the City’s funds, and moneys deposited in said fund or account shall be used for no other purpose. The Mayor, Mayor Pro Tem, City Manager, Assistant City Manager, Director of Finance, City Secretary and Deputy City Secretary, any one or more of said officials of the City, are hereby authorized and directed to make withdrawals from said fund or account sufficient to pay the principal of and interest on the Certificates as the same become due and payable, and, shall cause to be transferred to the Paying Agent/Registrar from moneys on deposit in the Certificate Account (on or prior to a principal and/or interest payment date) an amount sufficient to pay the amount of principal and/or interest falling due on the Certificates. Pending the transfer of funds to the Paying Agent/Registrar, money in the Certificate Account may, at the option of the City, invested in investments authorized by the Public Funds Investment Act, Texas Government Code, Chapter 2256, as amended, and the City’s investment policy; provided that all such deposits and investments shall be made in such a manner that the money required to be expended from said Certificate Account will be available at the proper time or times. All interest and income derived from deposits and investments in the Certificate Account shall be credited to, and any losses debited to, such account. All investments in the Certificate Account shall be sold promptly when necessary to prevent any default in connection with the Certificates. Section 12.Tax Levy. To provide for the payment of the “Debt Service Requirements” on the Certificates being (i) the interest on said Certificates and (ii) a sinking fund for their redemption at maturity or a sinking fund of 2% (whichever amount shall be the greater), there shall be and there is hereby levied, within the limitations prescribed by law, for the current year and each succeeding year thereafter while said Certificates or any interest thereon shall remain Outstanding, a sufficient tax on each one hundred dollars’ valuation of taxable property in said 223 202323571.2/100130859118 18 City, adequate to pay such Debt Service Requirements, full allowance being made for delinquencies and costs of collection; said tax shall be assessed and collected each year and applied to the payment of the Debt Service Requirements, and the same shall not be diverted to any other purpose. The taxes so levied and collected shall be paid into the Certificate Account. The City Council hereby declares its purpose and intent to provide and levy a tax legally and fully sufficient to pay the said Debt Service Requirements, it having been determined that the existing and available taxing authority of the City for such purpose is adequate to permit a legally sufficient tax in consideration of all other outstanding indebtedness. The amount of taxes to be provided annually for the payment of the principal of and interest on the Certificates shall be determined and accomplished in the following manner: Prior to the date the City Council establishes the annual tax rate and passes an ordinance levying ad valorem taxes each year, the City Council shall determine: (1)The amount on deposit in the Certificate Account after (a) deducting therefrom the total amount of Debt Service Requirements to become due on Certificates prior to the Collection Date for the ad valorem taxes to be levied and (b) adding thereto the amount of the Net Revenues of the System appropriated and allocated to pay such Debt Service Requirements prior to the Collection Date for the ad valorem taxes to be levied. (2)The amount of Surplus Revenues and any other lawfully available revenues which are appropriated and to be set aside during such fiscal year for the payment of the Debt Service Requirements on the Certificates between the Collection Date for the taxes then to be levied and the Collection Date for the taxes to be levied during the next succeeding fiscal year. (3)The amount of Debt Service Requirements to become due and payable on the Certificates between the Collection Date for the taxes then to be levied and the Collection Date for the taxes to be levied during the next succeeding calendar year. The amount of taxes to be levied annually each year to pay the Debt Service Requirements on the Certificates shall be the amount established in paragraph (3) above less the sum total of the amounts established in paragraphs (1) and (2), after taking into consideration delinquencies and costs of collecting such annual taxes. Section 13.Pledge of Revenues. The City hereby covenants and agrees that, subject to the prior lien on and pledge of the Net Revenues to the payment and security of the Prior Lien Obligations, the Surplus Revenues are hereby irrevocably pledged to the payment of the principal of and interest on the Certificates, and the pledge of Surplus Revenues herein made for the payment of the Certificates shall be limited to $1,000 and shall constitute a lien on the Surplus Revenues until such time as the City shall pay all of such $1,000, after which time the pledge shall cease, all in accordance with the terms and provisions hereof and be valid and binding and fully perfected from and after the date of adoption of this Ordinance without physical delivery or transfer or transfer of control of the Surplus Revenues, the filing of this Ordinance or any other act; all as provided in Texas Government Code, Chapter 1208, as amended (“Chapter 1208”). Chapter 1208 applies to the issuance of the Certificates and the pledge of the Surplus Revenues of the System granted by the City under this Section 13, and such pledge is therefore valid, effective and perfected. If Texas law is amended at any time while the Certificates are 224 202323571.2/100130859119 19 Outstanding such that the pledge of the Surplus Revenues of the System granted by the City under this Section 13 is to be subject to the filing requirements of Texas Business and Commerce Code, Chapter 9, as amended, then in order to preserve to the registered owners of the Certificates the perfection of the security interest in said pledge, the City agrees to take such measures as it determines are reasonable and necessary under Texas law to comply with the applicable provisions of Texas Business and Commerce Code, Chapter 9, as amended, and enable a filing to perfect the security interest in said pledge to occur. Section 14.Revenue Fund. The City hereby covenants and agrees that all revenues derived from the operation of the System shall be kept separate and apart from all other funds, accounts, and moneys of the City, and shall be deposited as collected into the “City of The Colony, Texas, Water and Sewer System Revenue Bonds Revenue Fund” (heretofore created and established in the connection with the issuance of outstanding Prior Lien Obligations and hereinafter called the “Revenue Fund”). All moneys deposited in the Revenue Fund shall be pledged and appropriated to the extent required for the following purposes and in the order of priority shown, to wit: First: To the payment of the reasonable and proper maintenance and operation expenses of the System as defined herein or required by statute or ordinances authorizing the Prior Lien Obligations to be a first charge on and claim against the revenues of the System. Second: To the payment of all amounts required to be deposited in the special funds created and established for the payment, security and benefit of Prior Lien Obligations in accordance with the terms and provisions of the ordinances authorizing the issuance of Prior Lien Obligations. Third: To the payment of the limited amounts required to be deposited in the special funds and accounts created and established for the payment of the Certificates and Additional Obligations. Any Net Revenues remaining in the Revenue Fund after satisfying the foregoing payments, or making adequate and sufficient provision for the payment thereof, may be appropriated and used for any other City purpose now or hereafter permitted by law. Section 15.Deposits to Certificate Account. The City agrees to cause to be deposited in the Certificate Account prior to a principal and interest payment date for the Certificates from the Surplus Revenues in the Revenue Fund, after the deduction of all payments required to be made to the special Funds or accounts created for the payment and security of the Prior Lien Obligations, or from ad valorem taxes or other lawfully available funds, as applicable, any amounts budgeted to be paid from the Certificate Account in such Fiscal Year. Accrued interest and premium, if any, received from the purchaser of the Certificates shall be deposited to the Certificate Account. In addition, any surplus proceeds from the sale of the Certificates not expended for authorized purposes shall be deposited in the Certificate Account, and such amounts so deposited shall reduce the sums otherwise required to be deposited in said Certificate Account. Section 16.Security of Funds. All moneys on deposit in the Funds for which this Ordinance makes provision (except any portion thereof as may be at any time properly invested) shall be secured in the manner and to the fullest extent required by the laws of Texas for the 225 202323571.2/100130859120 20 security of public funds, and moneys on deposit in such Funds shall be used only for the purposes permitted by this Ordinance. Section 17.Remedies in Event of Default. In addition to all the rights and remedies provided by the laws of the State of Texas, the City covenants and agrees particularly that in the event the City (a) defaults in the payments to be made to the Certificate Account, or (b) defaults in the observance or performance of any other of the covenants, conditions, or obligations set forth in this Ordinance, any Holder shall be entitled to a writ of mandamus issued by a court of proper jurisdiction compelling and requiring the governing body of the City and other officers of the City to observe and perform any covenant, condition, or obligation prescribed in this Ordinance. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power, or shall be construed to be a waiver of any such default or acquiescence therein, and every such right and power may be exercised from time to time and as often as may be deemed expedient. The specific remedies herein provided shall be cumulative of all other existing remedies and the specification of such remedies shall not be deemed to be exclusive. Section 18.Special Covenants. The City hereby covenants as follows: (i)That it has the lawful power to pledge the Surplus Revenues supporting this issue of Certificates and has lawfully exercised said powers under the Constitution and laws of the State of Texas, including said power existing under Texas Local Government Code, Subchapter C of Chapter 271, as amended, and Texas Government Code, Chapter 1502, as amended. (ii)That other than for the payment of the outstanding Prior Lien Obligations and the Certificates, the Net Revenues are not pledged to the payment of any debt or obligation of the City or of the System. (iii)That other than for the payment of the outstanding Certificates, the Surplus Revenues are not pledged to the payment of any debt or obligation of the City or of the System. (iv)That, as long as any Certificates or any interest thereon remain Outstanding, and the pledge of the Surplus Revenues has not been fully satisfied, the City will not sell, lease, or encumber the System or any substantial part thereof, provided that this covenant shall not be construed to prohibit the sale of such machinery, or other properties or equipment which has become obsolete or otherwise unsuited to the efficient operation of the System. (v)The City recognizes that the purchasers and owners of the Certificates will have accepted them on, and paid a price which reflects, the understanding that interest thereon is excludable from federal income taxation under laws in force at the time the Certificates shall have been delivered. In this connection the City covenants to take no action or fail to take any action, which action or failure to act may render the interest on any of such Certificates subject to federal income taxation, particularly pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”), nor shall the City take any action or fail to take any action, which action or failure to act, would have the effect of causing the income derived by the City from the System to become subject to federal income taxation in the hands of the City, whether or not provision shall have been made for the payment of such Certificates. 226 202323571.2/100130859121 21 Section 19.Issuance of Additional Obligations. The City hereby expressly reserves the right to hereafter issue Prior Lien Obligations and Additional Obligations without limitation as to principal amount but subject to any terms, conditions or restrictions applicable thereto under law or otherwise. Additional Prior Lien Obligations and Additional Obligations, if issued, may be payable, in whole or in part, from Net Revenues (without impairment of the obligation of contract with the holders of Certificates) upon such terms and conditions as the City Council may determine. Additional Obligations, if issued and payable, in whole or in part, from Surplus Revenues (as defined in the same or similar terms as the term Surplus Revenues is defined in this Ordinance), shall not in any event be construed as payable from the Surplus Revenues required by this Ordinance to be budgeted and appropriated for the payment of the Certificates and interest thereon. It is the intention of this governing body and accordingly hereby recognized and stipulated that the provisions, agreements and covenants contained herein bearing upon the management and operations of the System, and the administering and application of revenues derived from the operation thereof, shall to the extent possible be harmonized with like provisions, agreements and covenants contained in the ordinances authorizing the issuance of the Prior Lien Obligations, and to the extent of any irreconcilable conflict between the provisions contained herein and in the ordinances authorizing the issuance of the Prior Lien Obligations, the provisions, agreements and covenants contained therein shall prevail to the extent of such conflict and be applicable to this Ordinance but in all respects subject to the priority of rights and benefits, if any, conferred thereby to the holders of the Prior Lien Obligations. Section 20.Sale of the Certificates – Official Statement Approval. Pursuant to a public sale for the Certificates, the bid submitted by _____________ (herein referred to as the “Purchasers”) is declared to be the best bid received producing the lowest true interest cost rate to the City, and the sale of the Certificates to the Purchasers at the price of par plus premium in the amount of $_______________, is hereby determined to be in the best interests of the City and is approved and confirmed. Delivery of the Certificates to the Purchasers shall occur as soon as possible upon payment being made therefor in accordance with the terms of sale. The Initial Certificate shall be registered in the name as provided in the winning bid. Furthermore, the use of the Preliminary Official Statement by the Purchasers in connection with the public offering and sale of the Certificates is hereby ratified, confirmed and approved in all respects and such Preliminary Official Statement is hereby deemed "final" as of its date within the meaning and for the purposes of paragraph (b)(1) of Rule 15c2-12 under the Securities and Exchange Act of 1934, as amended. The final Official Statement, which reflects the terms of sale (together with such changes approved by the Mayor, Mayor Pro Tem, City Manager, Assistant City Manager, Director of Finance, City Secretary or Deputy City Secretary, any one or more of said officials), shall be and is hereby in all respects approved and the Purchasers are hereby authorized to use and distribute said final Official Statement, dated September 3, 2024, in the reoffering, sale and delivery of the Certificates to the public. The Mayor or Mayor Pro Tem and City Secretary or Deputy City Secretary are further authorized to execute and deliver for and on behalf of the City copies of said Official Statement in final form as may be required by the Purchasers, and such final Official Statement in the form and content executed by said officials shall be deemed to be approved by the Council and constitute the Official Statement authorized for distribution and use by the Purchasers. 227 202323571.2/100130859122 22 Section 21.Notices to Owners - Waiver. Wherever this Ordinance provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States mail, first-class, postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the business day next preceding the mailing of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Certificates. Where this Ordinance provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given; and, such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. Section 22.Cancellation. All Certificates surrendered for payment, redemption, transfer, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly canceled by it; and, if surrendered to the City, shall be delivered to the Paying Agent/Registrar and, if not already canceled, shall be promptly canceled by the Paying Agent/Registrar. The City may at any time deliver to the Paying Agent/Registrar for cancellation any Certificates previously certified or registered and delivered which the City may have acquired in any manner whatsoever, and all Certificates so delivered shall be promptly canceled by the Paying Agent/Registrar. All canceled Certificates held by the Paying Agent/Registrar shall be returned to the City. Section 23.Mutilated, Destroyed, Lost, and Stolen Certificates. If (a) any mutilated Certificate is surrendered to the Paying Agent/Registrar, or the City and the Paying Agent/Registrar receive evidence to their satisfaction of the destruction, loss, or theft of any Certificate, and (b) there is delivered to the City and the Paying Agent/Registrar such security or indemnity as may be required to save each of them harmless, then, in the absence of notice to the City or the Paying Agent/Registrar that such Certificate has been acquired by a bona fide purchaser, the City shall execute and, upon its request, the Paying Agent/Registrar shall register and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost, or stolen Certificate, a new Certificate of the same Stated Maturity and of like tenor and principal amount, bearing a number not contemporaneously outstanding. In case any such mutilated, destroyed, lost, or stolen Certificate has become or is about to become due and payable, the City in its discretion may, instead of issuing a new Certificate, pay such Certificate. Upon the issuance of any new Certificate under this Section, the City may require payment by the Holder of a sum sufficient to cover any tax or other governmental charge imposed in relation thereto and any other expenses (including the fees and expenses of the Paying Agent/Registrar) connected therewith. Every new Certificate issued pursuant to this Section in lieu of any mutilated, destroyed, lost, or stolen Certificate shall constitute a replacement of the prior obligation of the City, whether or not the mutilated, destroyed, lost, or stolen Certificate shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and ratably with all other Outstanding Certificates. 228 202323571.2/100130859123 23 The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement and payment of mutilated, destroyed, lost, or stolen Certificates. Section 24.Covenants to Maintain Tax-Exempt Status of Interest on the Certificates. (a)Definitions. When used in this Section, the following terms shall have the following meanings: “Closing Date” means the date on which the Certificates are first authenticated and delivered to the initial purchasers against payment therefor. “Code” means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. “Computation Date” has the meaning set forth in Section 1.148-1(b) of the Regulations. “Gross Proceeds” means any proceeds as defined in Section 1.148-1(b) of the Regulations, and any replacement proceeds as defined in Section 1.148-1(c) of the Regulations, of the Certificates. “Investment” has the meaning set forth in Section 1.148-1(b) of the Regulations. “Nonpurpose Investment” means any investment property, as defined in Section 148(b) of the Code, in which Gross Proceeds of the Certificates are invested and which is not acquired to carry out the governmental purposes of the Certificates. “Rebate Amount” has the meaning set forth in Section 1.148-1(b) of the Regulations. “Regulations” means any proposed, temporary, or final Income Tax Regulations issued pursuant to Sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue Code of 1954, which are applicable to the Certificates. Any reference to any specific Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced. “Yield” of (1)any Investment has the meaning set forth in Section 1.148-5 of the Regulations; and (2)the Certificates has the meaning set forth in Section 1.148-4 of the Regulations. (b)Not to Cause Interest to Become Taxable. The City shall not use, permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition, 229 202323571.2/100130859124 24 construction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any Certificate to become includable in the gross income, as defined in Section 61 of the Code, of the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the City receives a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Certificate, the City shall comply with each of the specific covenants in this Section. (c)No Private Use or Private Payments. Except as permitted by Section 141 of the Code and the Regulations and rulings thereunder, the City shall at all times prior to the last Stated Maturity of Certificates: (1)exclusively own, operate and possess all property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Certificates, and not use or permit the use of such Gross Proceeds (including all contractual arrangements with terms different than those applicable to the general public) or any property acquired, constructed or improved with such Gross Proceeds in any activity carried on by any person or entity (including the United States or any agency, department and instrumentality thereof) other than a state or local government, unless such use is solely as a member of the general public; and (2)not directly or indirectly impose or accept any charge or other payment by any person or entity who is treated as using Gross Proceeds of the Certificates or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds, other than taxes of general application within the City or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. (d)No Private Loan. Except to the extent permitted by Section 141 of the Code and the Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Certificates to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be “loaned” to a person or entity if: (1) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes; (2) capacity in or service from such property is committed to such person or entity under a take or pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any property acquired, constructed or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. (e)Not to Invest at Higher Yield. Except to the extent permitted by Section 148 of the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the final Stated Maturity of the Certificates directly or indirectly invest Gross Proceeds in any Investment (or use Gross Proceeds to replace money so invested), if as a result of such investment the Yield from the Closing Date of all Investments acquired with Gross Proceeds (or with money replaced thereby), whether then held or previously disposed of, exceeds the Yield of the Certificates. 230 202323571.2/100130859125 25 (f)Not Federally Guaranteed. Except to the extent permitted by Section 149(b) of the Code and the Regulations and rulings thereunder, the City shall not take or omit to take any action which would cause the Certificates to be federally guaranteed within the meaning of Section 149(b) of the Code and the Regulations and rulings thereunder. (g)Information Report. The City shall timely file the information required by Section 149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other form and in such place as the Secretary may prescribe. (h)Rebate of Arbitrage Profits. Except to the extent otherwise provided in Section 148(f) of the Code and the Regulations and rulings thereunder: (1)The City shall account for all Gross Proceeds (including all receipts, expenditures and investments thereof) on its books of account separately and apart from all other funds (and receipts, expenditures and investments thereof) and shall retain all records of accounting for at least six years after the day on which the last outstanding Certificate is discharged. However, to the extent permitted by law, the City may commingle Gross Proceeds of the Certificates with other money of the City, provided that the City separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired therewith. (2)Not less frequently than each Computation Date, the City shall calculate the Rebate Amount in accordance with rules set forth in Section 148(f) of the Code and the Regulations and rulings thereunder. The City shall maintain such calculations with its official transcript of proceedings relating to the issuance of the Certificates until six years after the final Computation Date. (3)As additional consideration for the purchase of the Certificates by the Purchasers and the loan of the money represented thereby and in order to induce such purchase by measures designed to insure the excludability of the interest thereon from the gross income of the owners thereof for federal income tax purposes, the City shall pay to the United States out of the Certificate Account or its general fund, as permitted by applicable Texas statute, regulation or opinion of the Attorney General of the State of Texas, the amount that when added to the future value of previous rebate payments made for the Certificates equals (i) in the case of a Final Computation Date as defined in Section 1.148-3(e)(2) of the Regulations, one hundred percent (100%) of the Rebate Amount on such date; and (ii) in the case of any other Computation Date, ninety percent (90%) of the Rebate Amount on such date. In all cases, the rebate payments shall be made at the times, in the installments, to the place and in the manner as is or may be required by Section 148(f) of the Code and the Regulations and rulings thereunder, and shall be accompanied by Form 8038-T or such other forms and information as is or may be required by Section 148(f) of the Code and the Regulations and rulings thereunder. (4)The City shall exercise reasonable diligence to assure that no errors are made in the calculations and payments required by paragraphs (2) and (3), and if an error is made, to discover and promptly correct such error within a reasonable amount of time thereafter (and in all events within one hundred eighty (180) days after discovery of the error), including payment to the United States of 231 202323571.2/100130859126 26 any additional Rebate Amount owed to it, interest thereon, and any penalty imposed under Section 1.148-3(h) of the Regulations. (i)Not to Divert Arbitrage Profits. Except to the extent permitted by Section 148 of the Code and the Regulations and rulings thereunder, the City shall not, at any time prior to the earlier of the Stated Maturity or final payment of the Certificates, enter into any transaction that reduces the amount required to be paid to the United States pursuant to subsection (h) of this Section because such transaction results in a smaller profit or a larger loss than would have resulted if the transaction had been at arm’s length and had the Yield of the Certificates not been relevant to either party. (j)Elections. The City hereby directs and authorizes the Mayor, Mayor Pro Tem, City Manager, Assistant City Manager and Director of Finance, either or any combination of them, to make elections permitted or required pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate in connection with the Certificates, in the Certificate as to Tax Exemption or similar or other appropriate certificate, form or document. Section 25.Satisfaction of Obligations of City. If the City shall pay or cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on the Certificates, at the times and in the manner stipulated in this Ordinance, then the pledge of taxes levied and the lien on and pledge of the Net Revenues under this Ordinance and all covenants, agreements, and other obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and satisfied. The Certificates, or any principal amount(s) thereof, shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (a) money sufficient to pay in full such Certificates or the principal amount(s) thereof at maturity or the redemption date therefor, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar, or an authorized escrow agent, or (b) Government Securities shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Securities have been certified by an independent accounting or consulting firm to mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any moneys deposited therewith, if any, to pay when due the principal of and interest on such Certificates, on and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or waived or if irrevocable arrangements therefor have been made) the redemption date thereof. The City covenants that no deposit of moneys or Government Securities will be made under this Section and no use made of any such deposit which would cause the Certificates to be treated as “arbitrage bonds” within the meaning of Section 148 of the Code or regulations adopted pursuant thereto. Any moneys so deposited with the Paying Agent/Registrar, and all income from Government Securities held in trust by the Paying Agent/Registrar, or an authorized escrow agent, pursuant to this Section which is not required for the payment of the Certificates, or any principal amount(s) thereof, or interest thereon with respect to which such moneys have been so deposited shall be remitted to the City or deposited as directed by the City. Furthermore, upon the City’s request, the Paying Agent/Registrar shall remit to the city along with a written receipt, any moneys deposited and held in trust by the Paying Agent/Registrar for the payment of the principal of and interest on the Certificates which remain unclaimed for a period of three (3) years after being so deposited and held on the Stated Maturity or applicable redemption date on the Certificates. Notwithstanding the above and foregoing, any remittance of funds from the Paying 232 202323571.2/100130859127 27 Agent/Registrar to the City shall be subject to any applicable unclaimed property laws of the State of Texas. Section 26.Proceeds of Sale. The proceeds of sale of the Certificates, excluding the amounts to pay costs of issuance, shall be deposited in a construction fund maintained at the City’s depository bank. Pending expenditure for authorized projects and purposes, such proceeds of sale may be invested in authorized investments in accordance with the provisions of Texas Government Code, Chapter 2256, as amended, including guaranteed investment contracts and the City’s investment policies and guidelines, and any investment earnings realized may be expended for such authorized projects and purposes or deposited in the Certificate Account as shall be determined by the City Council. All surplus proceeds of sale of the Certificates, including investment earnings, remaining after completion of all authorized projects or purposes shall be deposited to the credit of the Certificate Account. Section 27.Ordinance a Contract - Amendments. The provisions of this Ordinance shall constitute a contract with the Holders; and, the City shall not amend or repeal any of the provisions of this Ordinance so long as any Certificate remains Outstanding except as permitted in this Section and Section 28 hereof. The City, may, without the consent of or notice to any Holders, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, with the written consent of the registered owner or owners holding a majority in aggregate principal amount of the Certificates then Outstanding affected thereby, the City may amend, add to, or rescind any of the provisions of this Ordinance; provided that, without the consent of all Holders of Outstanding Certificates, no such amendment, addition or rescission shall: (1) extend the time or times of payment of the principal of, premium, if any, and interest on the Certificates, reduce the principal amount thereof, the redemption price therefor, or the rate of interest thereon, or in any other way modify the terms of payment of the principal of, premium, if any, or interest on the Certificates; (2) give any preference to any Certificate over any other Certificate; or, (3) reduce the aggregate principal amount of Certificates required to be held by Holders for consent to any such amendment, addition or rescission. Section 28.Continuing Disclosure Undertaking. (a)Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: “Financial Obligation” means a (a) debt obligation; (b) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (c) guarantee of a debt obligation or any such derivative instrument; provided that “financial obligation” shall not include municipal securities (as defined in the Securities Exchange Act of 1934, as amended) as to which a final official statement (as defined in the Rule) has been provided to the MSRB consistent with the Rule. “MSRB” means the Municipal Securities Rulemaking Board. “Rule” means SEC Rule 15c2-12, as amended from time to time. “SEC” means the United States Securities and Exchange Commission. 233 202323571.2/100130859128 28 (b)Annual Reports. The City shall provide annually to the MSRB (1) within six months after the end of each fiscal year ending in or after 2024, financial information and operating data with respect to the City of the general type of information contained in Tables 1 through 5 and 7 through 14 in the Official Statement, and (2) within twelve months after the end of each fiscal year ending in or after 2024, audited financial statements of the City. Any financial statements so provided shall be prepared in accordance with the accounting principles described in described in Appendix B to the Official Statement, or such other accounting principles as the City may be required to employ from time to time pursuant to state law or regulation and audited, if the City commissions an audit of such statements and the audit is completed within the period during which they must be provided. If audited financial statements are not available within 12 months after the end of any fiscal year, the City will provide unaudited financial statements within such twelve month period, and audited financial statements when and if such audited financial statements become available. If the City changes its fiscal year, it will notify the MSRB of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document available to the public on the MSRB’s Internet Web site or filed with the SEC. (c)Notice of Certain Events. The City shall provide notice of any of the following events with respect to the Certificates to the MSRB in a timely manner and not more than 10 business days after occurrence of the event: 1.Principal and interest payment delinquencies; 2.Non-payment related defaults, if material; 3.Unscheduled draws on debt service reserves reflecting financial difficulties; 4.Unscheduled draws on credit enhancements reflecting financial difficulties; 5.Substitution of credit or liquidity providers, or their failure to perform; 6.Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB), or other material notices or determinations with respect to the tax status of the Certificates, or other material events affecting the tax status of the Certificates; 7.Modifications to rights of holders of the Certificates, if material; 8.Certificate calls, if material, and tender offers; 9.Defeasances; 10.Release, substitution, or sale of property securing repayment of the Certificates, if material; 11.Rating changes; 12.Bankruptcy, insolvency, receivership, or similar event of the City, which shall occur as described below; 13.The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of its assets, 234 202323571.2/100130859129 29 other than in the ordinary course of business, the entry into of a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; 14.Appointment of a successor or additional trustee or the change of name of a trustee, if material; 15.Incurrence of a Financial Obligation of the City, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the City, any of which affect security holders, if material; and 16.Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the City, any of which reflect financial difficulties. For these purposes, (a) any event described in the immediately preceding item 12 is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City and (b) the City intends the words used in the immediately preceding items 15 and 16 in this Section to have the same meanings as when they are used in the Rule, as evidenced by SEC Release No. 34-83885, dated August 20, 2018. The City shall notify the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with subsection (b) of this Section by the time required by such Section. (d)Filings with the MSRB. All financial information, operating data, financial statements, notices and other documents provided to the MSRB in accordance with this Section shall be provided in an electronic format prescribed by the MSRB and shall be accompanied by identifying information as prescribed by the MSRB. (e)Limitations, Disclaimers, and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the City remains an “obligated person” with respect to the Certificates within the meaning of the Rule, except that the City in any event will give the notice required by subsection (c) of this Section of any Certificate calls and defeasance that cause the City to be no longer such an “obligated person.” The provisions of this Section are for the sole benefit of the Holders and beneficial owners of the Certificates, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to 235 202323571.2/100130859130 30 provide any other information that may be relevant or material to a complete presentation of the City’s financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Certificates at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No default by the City in observing or performing its obligations under this Section shall constitute a breach of or default under this Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. Notwithstanding anything herein to the contrary, the provisions of this Section may be amended by the City from time to time to adapt to changed circumstances resulting from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Certificates in the primary offering of the Certificates in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (2) either (a) the Holders of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the Outstanding Certificates consent to such amendment or (b) a person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the Holders and beneficial owners of the Certificates. The provisions of this Section may also be amended from time to time or repealed by the City if the SEC amends or repeals the applicable provisions of the Rule or a court of final jurisdiction determines that such provisions are invalid, but only if and to the extent that reservation of the City’s right to do so would not prevent an underwriter of the initial public offering of the Certificates from lawfully purchasing or selling Certificates in such offering. If the City so amends the provisions of this Section, it shall include with any amended financial information or operating data next provided pursuant to subsection (b) of this Section an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. Section 29.Control and Custody of Certificates. The Mayor of the City shall be and is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the State of Texas, including the printing and supply of definitive Certificates, and shall take and have charge and control of the Initial Certificate(s) pending the approval thereof by the Attorney General, the registration thereof by the Comptroller of Public Accounts, and the delivery thereof to the Purchaser. Section 30.Further Procedures. Any one or more of the Mayor, Mayor Pro Tem, City Manager, Assistant City Manager, Director of Finance, City Secretary and Deputy City Secretary 236 202323571.2/100130859131 31 are hereby expressly authorized, empowered and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowledge and deliver in the name and on behalf of the City all agreements, instruments, certificates or other documents, whether mentioned herein or not, as may be necessary or desirable in order to carry out the terms and provisions of this Ordinance and the issuance, sale and delivery of the Certificates. In addition, prior to the initial delivery of the Certificates, the Mayor, Mayor Pro Tem, City Manager, Assistant City Manager, Director of Finance, City Secretary, Deputy City Secretary or Bond Counsel to the City are each hereby authorized and directed to approve any changes or corrections to this Ordinance or to any of the documents authorized and approved by this Ordinance: (i) in order to cure any ambiguity, formal defect or omission in this Ordinance or such other document; or (ii) as requested by the Attorney General of the State of Texas or his representative to obtain the approval of the Certificates by the Attorney General and if such officer or counsel determines that such changes are consistent with the intent and purpose of this Ordinance, which determination shall be final. In the event that any officer of the City whose signature shall appear on any document shall cease to be such officer before the delivery of such document, such signature nevertheless shall be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. Section 31.Bond Counsel’s Opinion. The Purchaser’s obligation to accept delivery of the Certificates is subject to being furnished a final opinion of Norton Rose Fulbright US LLP, Dallas, Texas, approving such Certificates as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for such Certificates. A true and correct reproduction of said opinion is hereby authorized to be printed on the definitive Certificates or an executed counterpart thereof shall accompany the global Certificates deposited with DTC. The City Council confirms the continuation of the engagement of Norton Rose Fulbright US LLP as the City's bond counsel. Section 32.CUSIP Numbers. CUSIP numbers may be printed or typed on the definitive Certificates. It is expressly provided, however, that the presence or absence of CUSIP numbers on the definitive Certificates shall be of no significance or effect as regards the legality thereof and neither the City nor the attorneys approving said Certificates as to legality are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Certificates. Section 33.Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is intended or shall be construed to confer upon any person other than the City, the Paying Agent/Registrar, and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Ordinance. This Ordinance in its entirety is intended to be and is for the sole and exclusive benefit of the City, the Paying Agent/Registrar, and the Holders. Section 34.Inconsistent Provisions. Except as provided in Section 19 hereof, all ordinances, orders, or resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict and the provisions of this Ordinance shall be and remain controlling as to the matters contained herein. Section 35.Construction of Terms. If appropriate in the context of this Ordinance, words of the singular number shall be considered to include the plural, words of the plural number shall be considered to include the singular, and words of the masculine, feminine or neuter gender shall be considered to include the other genders. Section 36.Incorporation of Findings and Determinations. The findings and determinations of the City Council contained in the preamble hereof are hereby incorporated by 237 202323571.2/100130859132 32 reference and made a part of this Ordinance for all purposes as if the same were restated in full in this Section. Section 37.Governing Law. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 38.Effect of Headings. The Section headings herein are for convenience of reference only and shall not affect the construction hereof. Section 39.Severability. If any provision of this Ordinance or the application thereof to any circumstance shall be held to be invalid, the remainder of this Ordinance or the application thereof to other circumstances shall nevertheless be valid, and this governing body hereby declares that this Ordinance would have been enacted without such invalid provision. Section 40.Public Meeting. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by Texas Government Code, Chapter 551, as amended. Section 41.Effective Date. This Ordinance shall take effect and be in force from and after its passage and approval in accordance with the provisions of Texas Government Code, Section 1201.028, as amended. [The remainder of this page is intentionally left blank] 238 PASSED AND APPROVED by the City Council of the City of The Colony, Texas, this 3rd day of September, 2024. Richard Boyer, Mayor City of The Colony, Texas ATTEST: Tina Stewart, City Secretary City of The Colony, Texas (City Seal) APPROVED AS TO FORM: Jeff Moore, City Attorney City of The Colony, Texas 239 EXHIBIT A PAYING AGENT/REGISTRAR AGREEMENT 240 Agenda Item No:5.7 CITY COUNCIL Agenda Item Report Meeting Date: September 3, 2024 Submitted by: Latonjia Williams Submitting Department: Finance Item Type: Resolution Agenda Section: Subject: Discuss and consider approving a resolution amending the Fiscal Year 2023-2024 Master Fee Schedule for the Fiscal Year 2024-2025, effective October 1st, 2024. (Miller/L. Williams) Suggested Action: Attachments: FY 2024-2025 Master Fee Schedule_FINAL.xlsx 241 Master Fee Schedule October 01, 2024 - September 30, 2025 242 $15 each $50 each $.10 per page $.50 per page $1 per square foot Organization Event Sign Permit Tent, Bounce House, Climbing Wall Small Copies (up to 8 1/2" X 14") Donation Box - Annual Permit Rental Inspection - per unit inspected - (Multi-Family) - Program Suspended Rental Registration - Suspended at this time Rental Inspection - per unit inspected - Program Suspended Fifth and subsequent re-inspections = $500 each First Inspection = $5 Follow-up re-inspection = no fee Third re-inspection = $100 Fourth re-inspection = $250 Fifth and subsequent re-inspections = $500 each $10 per unit $100 per unit COMMERCIAL & MULTI-FAMILY PERMITS (NEW CONSTRUCTION) Valuation and fee determined per the "Square Foot Construction Costs" table provided each August by the International Code Council with a permit fee multiplier of 0.0090 (See TABLE 2) Valuation and fee determined per the "Square Foot Construction Costs" table provided each August by the International Code Council with a permit fee multiplier of 0.0050 (See TABLE 2) Donation Box - Relocation Permit Newspaper Box - Annual Permit Newspaper Box - Relocation Commercial Cell Tower Flagpole Installation (over 20' in height) Demolition Residential Building Permit Residential Accessory Structure Late Rental Registration - Program Suspended Late Rental Inspection - Program Suspended Commercial Building Permit Commercial Alteration, Remodel, Total Finish Out (TFO) NEW RESIDENTIAL HOME PERMITS (NEW CONSTRUCTION) $1.01 PER SQUARE FOOT Other Building Permits $100 Copies (11" X 17" or greater) Color Copies larger than 11" X 17" $0.159 per sq ft (minimum $50) $50 $75 Commercial Tree Removal Other required permits not specifically listed Archiving Fee Residential Remodel, Addition Re-roofing - Multi-Family / Commercial Re-roofing - Single Family (replace decking) Temporary Commercial Structure Manufactured Home Inspection Manufactured / Modular Home Moving Permit $100 $275 $100 $0.159 per sq ft (minimum $50) $10 per $1,000 value ($100 minimum) $75 $50.00 + $100.00 for each protected tree to be removed $10 per $1,000 value ($100 minimum) Miscellaneous $5 per page After Hours Inspection (At the discretion of the Building Official.) Holiday Inspection (At the discretion of the Building Official, includes weekends in conjunction with holidays.) Special Event Permit: Work Performed without a Permit Re-inspection Same Day Inspection (At the discretion of the Building Official. During Business Hours. Attendance of 0-249 Persons Attendance of 250-1,999 Persons Attendance of 2,000+ Persons Schedule fee doubled $75 $50 per hour (2 hour maximum) $100 per hour (2 hour maximum) $200 per hour (2 hour maximum) $50 $150 $250 ANNUAL PERMITS Donation Box $100 $100 Newspaper Box Fee Not Required as of 10/01/15 Fee Not Required as of 10/01/15 Rental Registration & Inspection - Suspended at this time $5 per unit annually First Inspection = $50 Follow-up re-inspection = no fee Third re-inspection = $100 Fourth re-inspection = $250 243 Mechanical Permit Annual Backflow Inspection Report Backflow Repair / Replacement Permit $53 per device annually $75 $125 $10.00 for every $1,000 value ($100 minimum) Multi-Family Plan Review Application Fee/Non-Refundable Plan Review Fee (to be paid at time of application) Residential Plan Review Accessory Structure Remodels Commercial Plan Review $150 $100 - first hood 1 - 25 devices = $150 26 - 50 devices = $200 51 - 75 devices = $250 76 - 100 devices = $325 BUILDING PERMITS Electric Permit $10.00 for every $1,000 value ($100 minimum) $50 Fencing/Retaining Wall Permit 1 lot: $50 Subdivision: $50.00 plus $0.25 per linear foot 1 lot: $75 Mechanical Permit $10.00 for every $1,000 value ($100 minimum) Plumbing Permit Fence Electrical Permit Temporary Power Pole/Clean & Show Subdivision & Commercial: $50.00 plus $0.25 per linear footRetaining Wall $75 In Ground / Above Ground Swimming Pool Pool/Spa Permit $200 $200 $150 Sign Permit 0 - 29.99 sq ft = $30 Billboard - Annual Renewal Certificate of Occupancy Temporary Certificate of Occupancy Re-Inspection Fee - Building Inspections Signage license agreement review Inflatable Sign Billboard - Registration Sign Permit Spray Park / Splash Zone Hot Tub or Spa Banner Sign 400 - sq ft and up = $300 $100 $45 $75 New Lawn Sprinkler System & Backflow Test Plumbing Permit 30 - 48 sq ft - $45 0 - 24,99 sq ft = $30 25 - 49.99 sq ft = $45 50 - 99.99 sq ft = $60 100 - 299.99 sq ft = $125 300 - 399.99 sq ft = $200 $150 Certificate of Occupancy $75 $75 Scheduled fee doubledOperating a business without a C of O $75 Fire Re-Inspection Storage Tanks Mobile Food Unit Fire Inspection State Mandated Fire Inspection Sign Plan Review Plan Amendment Fee General Contractor** $20 $100 Contractor License/Registration $75 per registration annually **General Contractor shall include, but not to be limited to, the following contractors: commercial, residential, moving, pool, fence, sign, demolition, foundation, remodeling, etc. Fire Plan Review/Permit $75 $0 $0 $75 for the first $150 for the second Above Ground - $100 Underground - $150 $50 or 25% of building permit fee, whichever is greater 25% of building permit fee 25% of building permit fee $50 Re-inspection Fee - Fire/Annual Fire Co Inspection Building Plan Review $50 or 25% of building permit fee, whichever is greater $100 Group Home - Annual Fire Inspection Fire Sprinkler Permit (Based on the number of sprinkler heads) 201 - 300 sprinkler heads = $225 301 - 400 sprinkler heads = $250 401 - 500 sprinkler heads = $300 over 500 sprinkler heads = $250 + $.25 per sprinkler over 500 $100 $50 - each additional Double permit fee Solar Review & Inspection Fire Line Permit Fire Alarm Permit Fee (Based on the number of signal initiating devices) Special Locks ERRCS (Emergency Radio Responder Coverage System) Vent Hood Permit Working without a permit Fire Panel Replacement Only Fire Plan Review Plan Review Re-submittal Fire Communicator Replacement Only $100 $175 $200 $100 CO2 System 101 devices = $350 + $.75 per device over 100 1 - 100 sprinkler heads = $175 101 - 200 sprinkler heads = $200 $100 $75 $225 244 $1,200 $1,625 $1,895 $2,415 $3,210 $4,270 $500 $20 per foot 2" Tap & Meter 3" Tap Only 4" Tap Only 6" Sewer Tap 8" Sewer Tap 10" Sewer Tap When a paved road must be bored to make tap $70 per property (within 3 business days) $35 per sign $500 annual permit $35 + Mitigation Fees $20 Zoning Cost ($400 minimum) $500 $25 + Mitigation Fees $20 PD Amendment Site Plan Amendment Review Annexation Notice 0 - 4.99 acres or portion thereof = $375 5 - 9.99 acres or portion thereof = $650 Permit for Sexually Oriented Business Preliminary Plat All others = $250 + $72 per acre or portion thereof Platting Single Family / Duplex = $375 + $15 per lot Multi-Family / TH = $250 + $144 per acre or portion thereof 10 - 24.99 acres or portion thereof = $825 25 - 49.99 acres or portion thereof = $1,000 50 - 99.99 acres or portion thereof = $1,250 100+ acres = $200 + $12 per acre Annexation Petition Zoning Amendments, Planned Developments, Specific Use Permits, Site Plan Irrigation Permit Combine MUZ, NSV, and Irrigation Renewal Permits Gateway Standards Waiver Zoning Verification Letter Public Hearing Sign Deposit SUP Amendment Special Exception MUZ Permit Narrow Shoreline Variance Permit Shoreline Mitigation Fees $20 1.5" Tap & Meter Plat Extension Vacating Plat 5/8" Tap & Meter 6 - 10 addresses = $225 11 + addresses = $400 $100 $250 Water Meter $475 $595 $730 $1,085 Street Address Change/Street Name Change $375 $100 $375 $350 Variance Application $350 $350 $50 per property (within 7 business days) Minor Plat Conveyance Plat Final Plat / Amending Plat Replat Single Family / Duplex = $375.00 + $15.00 per lot Multi-Family / TH = $250 + $144 per acre or portion thereof All others = $250 + $72 per acre or portion thereof Single Family / Duplex = $375 + $15 per lot Multi-Family / TH = $250 + $144 per acre or portion thereof All others = $250 + $72 per acre or portion thereof $300 + $10 per acre or portion thereof Single Family / Duplex = $375 + $15 per lot All others = $250 + $72 per acre or portion thereof Multi-Family / TH = $250 + $144 per acre or portion thereof 1 - 5 addresses = $100 3/4" Tap & Meter 1" Tap & Meter Tap & Meter fee includes a service connection from main line to meter within (50) feet. Connections greater than fifty (50) feet shall include a "per foot" fee. 4" Sewer Tap 6" Tap Only 8" Tap Only 10" Tap Only Sewer/Fire Line Tap $570 $865 $1,410 $2,220 4" Fire Line Tap 6" Fire Line Tap 8" Fire Line Tap $1,895 $2,415 $3,210 10" Fire Line Tap $5,000 245 $322,720 $645,440 8" Compound Meter $41,440 8" Turbine Meter $82,880 $129,500 NOTE: Turbine meters are for irrigation only. All irrigation meters are only required to pay Water Impact Fees, not Sewer Impact Fees. $1,008,500 $96,816 $100,850 $169,428 $201,700 $371,128 $92,160 10" Compound Meter $88,320 $19,200 4" Turbine Meter $24,192 6" Compound Meter $38,400 $13,224 WATER & SEWER IMPACT (Property final platted after October 1, 2007 ) SEWER IMPACT FEE $815 6" Compound Meter $25,900 6" Turbine Meter 8" Turbine Meter METER SIZE WATER IMPACT FEE $8,150 $13,040 $12,969 $18,513 $23,364 $37,125 5/8" X 3/4" Meter $768 3/4" Meter $1,152 WATER & SEWER IMPACT (Property final platted after December 1, 2020) SEWER IMPACT FEE $4,034 $6,051 5/8" PD 8" Compound Meter $132,240 8" Turbine Meter 6" Turbine Meter $152,076 3" Turbine Meter $39,672 4" Compound Meter $41,325 4" Turbine Meter $69,426 6" Compound Meter $82,650 $19,560 $777 $61,440 2" Compound Meter $6,144 2" Turbine Meter $6,144 3" Turbine Meter $13,440 4" Compound Meter 3" Compound Meter $12,288 1" Meter $1,920 1.5" Meter $1,782 $3,663 $5,940 $5,940 $11,880 METER SIZE METER SIZE WATER IMPACT FEE 2" Compound Meter 1" Meter WATER IMPACT FEE $1,223 $2,038 $4,075 $6,520 5/8" X 3/4" Meter $1,653 3/4" Meter $2,480 $4,133 $34,230 $40,750 $74,980 $65,200 $990 $1,089 1 1/2" PD 10" Turbine Meter WATER & SEWER IMPACT (Property final platted before September 30, 2007) ENTIRE CITY EXCEPT THE TRIBUTE SUBDIVISION* SEWER IMPACT FEE $2,590 2" PD 10" Turbine Meter $145,920 6" Turbine Meter $53,760 8" Compound Meter $51,975 $59,400 $89,100 $85,338 $141,075 * The Tribute Subdivision has a Developer's Agreement authorizing all new fees. NOTE: Turbine meters are for irrigation only. All irrigation meters are only required to pay Water Impact Fees, not Sewer Impact Fees. $264,480 10" Turbine Meter $413,250 2" Turbine Meter $16,530 3" Compound Meter $26,448 $3,840 1.5" Meter $8,265 $47,656 4" Compound Meter $12,950 4" Turbine Meter $21,756 $130,400 $203,750 NOTE: Turbine meters are for irrigation only. All irrigation meters are only required to pay Water Impact Fees, not Sewer Impact Fees. 3" Compound Meter $8,288 3" Turbine Meter $12,432 2" Compound Meter $4,144 2" Turbine Meter $5,180 $518 3/4" PD 1" PD $20,375 $1,295 $4,144 $10,085 $20,170 $32,272 $32,272 $40,340 $64,544 246 ITE Land Use Code 030 110 120 130 150 151 210 220 230 240 251 252 254 310 320 432 430 495 465 431 445 491 560 565 522 530 540 550 630 610 620 640 714 710 720 715 750 942 843 944 945 946 841 941 947 848 934 933 932 931 937 815 817 862 880 881 820 850 864 875 896 911 912 918 7.87 19.51 11.23 11.21 15.62 3.90 12.69 16.25 12.34 29.86 4.21 21.86 898$ 1,510$ 664$ 486$ 1,000 SF GFA 3.57 OFFICE Corporate Headquarters Building General Office Building Medical - Dental Office Building 485$ 936$ 1,379$ 274$ 1,604$ 5,716$ 4,315$ 2,055$ 1,385$ 4,251$ 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA Vehicle Fueling Position Dining 1,000 SF Occ GLA 1,000 SF GFA 1,711$ 772$ 821$ 2,050$ 954$ 827$ 1,000 SF GFA 1,000 SF GFA Single Tenant Office Building Office Park 5.92 5.64 5.96 14.28 6.96 1,000 SF GFA 227$ 1,452$ 1,791$ 250$ 2,061$ 2,542$ 274$ 3,424$ 80$ 64$ 59$ 85$ 2,694$ 677$ 114$ 455$ 356$ 949$ Development Unit Acre 1,000 SF GFA 3.88 1.93 1.51 4.02 2.48 2.08 2.36 1.08 585$ 491$ 557$ 255$ 236$ 208$ 3.40 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA 1.04 Veh-Mi Per Dev-Unit 26.20 Dwelling Unit Dwelling Unit Dwelling Unit General Light Industrial Truck Terminal PORT AND TERMINAL Land Use Category INDUSTRIAL 642$ 802$ 302$ 245$ 944$ Room ROADWAY IMPACT FEES - Page 1 2016 Fees 6,183$ 916$ General Light Industrial RESIDENTIAL 4.00 1.00Dwelling Unit Room Miniature Golf Course Tee 2.72 1.28 Acre Dwelling Unit Assisted Living LODGING Hotel Motel / Other Lodging Facilities RECREATIONAL Golf Driving Range Single-Family Detached Housing Apartment/Multi-family Dwelling Unit 0.88Beds 0.96 8.81 7.59 1.06 43.85 10.77 Ice Skating Rink Clinic Hospital Nursing Home Residential Condominium/Townhome Mobile Home Park/Manufactured Housing Senior Adult Housing-Detached Senior Adult Housing-Attached Industrial Park Warehousing Mini-Warehouse Church Day Care Center Primary / Middle School (1 - 8) High School Junior / Community College Multiplex Movie Theater Racquet / Tennis Club 1,000 SF GFA Hole Screens Court Golf Course Recreational Community Center 1,000 SF GFA 0.36 19.55 5.36 0.83 1.16 1,000 SF GFA Beds 14.51 0.34 0.27 0.25 1,000 SF GFA 1,000 SF GFA Students 1,000 SF GFA Students Students Students 5.22 9.54 4.83 Gasoline / Service Station w/ Conv Market Gasoline / Service Station w/ Conv Market and Car Wash New Car Sales Quick Lubrication Vehicle Shop Self - Service Car Wash Tire Store 1,000 SF GFA Servicing Positions Stall COMMERCIAL Automobile Related Automobile Care Center Automobile Parts Sales Gasoline / Service Station 1,000 SF GFA Vehicle Fueling Position Vehicle Fueling Position Beds 1,000 SF GFA 12.46 University / College MEDICAL Animal Hospital / Veterinary Clinic INSTITUTIONAL Free-Standing Discount Store Nursery (Garden Center) Home Improvement Superstore Pharmacy/Drugstore w/o Drive Thru Window Pharmacy/Drugstore w/Drive Thru Window 1,000 SF GFA Drive-in Lanes 1,000 SF GLA Fast Food Restaurant w/ Drive-Thru Window Fast Food Restaurant w/out Drive-Thru High Turnover (Sit-Down) Restaurant Quality Restaurant Coffee/Donut Shop w/Drive-Thru Window 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA 1,000 SF GFA Walk-In Bank Toy/Children's Superstore Department Store Video Rental Store Drive-in Bank Hair Salon 1,000 SF GFA 1,000 SF GFA Shopping Center Supermarket SERVICES 1,097$ 2,963$ 1,547$ 552$ 3,012$ 2,912$ 5,662$ 406$ 3.66 5.87 8.72 1.99 8.37 39.10 31.31 13.45 10.05 30.75 1,570$ 1,178$ 759$ 1,947$ 1,947$ 1.72 Other Retail 247 248 $231.52/ERU* *ERU is an equivalent residential unit and is equal to 3,406 square feet of impervious area. Residential Non-Residential OFFICE CREEK DRAINAGE IMPACT FEES & MAP $231.52/lot 249 250 251 Group (2021 International Building Code)IA IB IIA IIB IIIA IIIB IV VA VB A-1 Assembly, theaters, with stage 335.89 324.58 316.94 304.93 286.87 278.00 295.62 266.02 257.55 A-1 Assembly, theaters, without stage 307.39 296.08 288.44 276.42 258.37 249.50 267.12 237.51 229.05 A-2 Assembly, nightclubs 269.94 261.93 254.48 245.85 230.56 223.99 237.02 209.57 202.79 A-2 Assembly, restaurants, bars, banquet halls 268.94 260.93 252.48 244.85 228.56 222.99 236.02 207.57 201.79 A-3 Assembly, churches 311.88 300.57 292.93 280.91 263.30 254.43 271.60 242.45 233.98 A-3 Assembly, general, community halls, libraries, museums 266.07 254.76 246.12 235.10 216.33 208.46 225.80 195.47 188.01 A-4 Assembly, arenas 306.39 295.08 286.44 275.42 256.37 248.50 266.12 235.51 228.05 B Business 260.69 251.13 241.86 231.65 210.99 202.73 222.56 186.21 177.81 E Educational 273.46 263.96 255.62 245.04 228.69 217.00 236.61 200.36 193.94 F-1 Factory and industrial, moderate hazard 160.20 152.78 143.34 138.64 123.55 117.41 132.48 102.44 95.93 F-2 Factory and industrial, low hazard 159.20 151.78 143.34 137.64 123.55 116.41 131.48 102.44 94.93 H 1 High Hazard. explosive 149.46 142.04 133.60 127.90 114.12 106.97 121.74 93.00 N.P. H234 High Hazard 149.46 142.04 133.60 127.90 114.12 106.97 121.74 93.00 85.50 H-5 HPM 260.69 251.13 241.86 231.65 210.99 202.73 222.56 186.21 177.81 I -1 lnstîtutional. supervised environment 262.22 252.95 244.31 235.67 215.42 209.47 235.71 193.82 187.73 I-2 lnstîtutional. hospitals 434.15 424.59 415.32 405.12 383.35 N.P.396.02 358.57 N.P. I-2 Institutional. nursing homes 302.01 292.45 283.18 272.97 253.83 N.P.263.88 229.05 N.P. I-3 Institutional, restrained 295.86 286.31 277.03 266.83 247.95 238.69 257.74 223.17 212.77 I-4 Institutional. day care facilities 262.22 252.95 244.31 235.67 215.42 209.47 235.71 193.82 187.73 M Mercantile 201.37 193.36 184.91 177.28 161.72 156.15 168.45 140.73 134.95 R-1 Residential, hotels 264.67 255.41 246.77 238.13 218.35 212.40 238.17 196.75 190.67 R-2 Residential, multiple family 221.32 212.06 203.42 194.78 175.96 170.01 194.82 154.36 148.28 R-3 Reidential, one- and two-family d 209.61 203.64 198.94 195.12 188.41 181.45 191.77 175.86 165.67 R-4 Residential, care/assisted living facilities 262.22 252.95 244.31 235.67 215.42 209.47 235.71 193.82 187.73 S-1 Storage, moderate hazard 148.46 141.04 131.60 126.90 112.12 105.97 120.74 91.00 84.50 S-2 Storage, low hazard 147.46 140.04 131.60 125.90 112.12 104.97 119.74 91.00 83.50 U Utility. miscellaneous 114.09 107.37 99.89 95.60 85.13 79.54 90.99 67.39 64.19 a. Private Garages use Utility, miscellaneous b. For shell only buildings deduct 20 percent c. N.P. = not permitted d. Unfinished basements (Group R-3) = $22.45 per sq. ft. Square Foot Construction Costs A,B,C TO CALCULATE FEE = MULTIPLY GROSS SQUARE FEET BY Type II-B Retail (Mercantile) with 3,800 sq. ft. of floor space would be calculated as: 3,800 X $125.68 X 0.0090 = $4,298.25 $ AMOUNT ABOVE BY PERMIT FEE MULTIPLIER (CURRENTLY 0.0090 FOR NEW CONSTRUCTION, 0.0050 FOR ALTERATION, REMODEL, TFO) 252 $25 $100 $2.50 Finance $500/Each Claim NSF check returned fee per incident Expunction Filing Fee Small Copies (Up to 8.5 " x 14") Copies (11" x 17" or Greater) Color Copies Larger than 11" x 17" Reinspection Fee (Facility initiated) Re-Inspection Fee Operating without a permit $75 $100 GENERAL FUND Permits Floodplain Development Permit $100 $300 $400 $500 $40 Grading Permit Single Family Residential Lot < 300 linear feet stream or shoreline 300 - 1,000 linear feet stream or shoreline > 1,000 linear feet stream or shoreline $200 $300 Well Drilling Permit $50 $50 $250 Single Family Residential Lot < 3 acres > 3 acres Monitor well De-watering well Injection well Administrative Fee - Residential (1 thru 4) Administrative Fee - Residential (5+) Administrative Fee - Commercial (1 thru 3) $250 Network Node Fees Code Enforcement Fees $100 $150 $100 Pole attachment rent (network node on service pole) Permit application fee $20/pole/year $500/node (first 5 network nodes) $250/node for each additional node over 5 nodes $1,000/pole for each node support pole Test well Irrigation well Water well - residential Water well - non-residential Annual public right of way use fee Network provider connect network node to network fee $250 per network node/year $28 per node per month $50 $250 $100 Grocery Stores (>8,000 sq. ft. GFA) Restaurants (<2,000 sq. ft. GFA) Restaurants (>2,000 sq. ft. GFA) 1 to 5 days late 6 or more days late Grocery Stores (<8,000 sq. ft. GFA) Administrative Fee - Commercial (4+)$200 Health Permits Annual Health Permits: Late Payment of Health Permit: 50% of health permit fee 100% of health permit fee $350 $550 $350 $550 Plan Review $150 $150 first and $100 each additional $150 per hour (2 hour minimum) $200 per hour (two hour minimum) Temporary Permits (14 days or less) Mobile (Hot Food) Food Unit Mobile (Cold Food) Food Unit Convenience Store (with deli) Child Care Facilities Seasonal Permits (6 months) Warehouse/Distribution/Catering (<2,000 sq. ft. GFA) Warehouse/Distribution/Catering (>2,000 sq. ft. GFA) Convenience Store $350 $550 $265 $320 $200 $150 $100 per event/per vendor $350 $200 Holiday Inspection (at the discretion of the Health Inspector, includes weekends in conjuction with holidays) Pre-Opening/Change of Ownership Fee Public/Semi-Public Swimming Pool/Spa/Splash Zone PIWF Same Day Inspection/After Hours Inspection (at the discretion of the Health Inspector) Court fine payments online/over the phone $75 Scheduled fee doubled Miscellaneous $.10 Per Page $.50 Per Page $1 Per Square Foot * Fees may be reduced up to 50% for non-profit organizations upon approval from the City Manager or his designee. Municipal Court Administrative Fee - Insurance Claims Self Service Food Markets $100 253 Holiday Rate Holiday Rate LISD Event Fire & Ambulance $550 - Resident $27, plus $5 proc fee $15, plus $5 proc fee $27, plus $5 proc fee $20, plus $5 proc fee $27, plus $5 proc fee $18, plus $5 proc fee $27, plus $5 proc fee $18, plus $5 proc fee $7, plus $2 proc fee $5, plus $2 proc fee $8, plus $2 proc fee $20, plus $5 proc fee Actual cost, plus $5 process fee $10/piece up to a maximum of $100 per cataloged item, plus $5 proc fee $15/piece plus $5 proc fee Firefighter/Paramedic Rate $20, plus $5 proc fee $10/disc, plus $5 proc fee Board books Magazine Mass market paperback LP Non-Fiction (paperbound) Non-Fiction (hardbound) Non-Fiction (paperbound) LP Fiction (hardbound) LP Fiction (paperbound) LP Non-Fiction (hardbound) Fishing gear Equipment Inter-library loan material Specialized Critical Care (SCT) Advanced Life Support (ALS) Disposables Basic Life Support (BLS) Disposables $900 - Resident $1,100 - Non-Resident $200 - Non-Resident $150 - Non-Resident $50.00 $60/year - $5/month $96/year - $8/month $75.00/hr $90.00/hr Advanced Life Support (2) (ALS2) Basic Life Support (BLS) Emergencies Ambulance Calls Mileage Advanced Life Support (ALS) Emergencies Graphic Novel Adult Fiction (hardbound) Adult Fiction (paperbound) E /J FIC /YA FIC YA FIC (paperbound) Supervisor Rate Supervisor Rate $100.00/hr $120.00/hr $160/hr Library Restitution for lost/ruined materials: Book (according to classification): $17, plus $5 proc fee $15, plus $5 proc fee $17, plus $5 proc fee $650 - Non-Resident $15.00 $900 - Resident $900 - Non-Resident $1,000 - Resident $1,100 - Non-Resident $800 - Resident $850 - Non-Resident New Subscribers Special Events Firefighter/Paramedic Rate Personnel & Apparatus Oxygen Ambulance Subscription Service Existing Subscribers Compact disc Movies (disc) TV series (disc) Children's kit (CD & book) Activity kits Audiobooks & kits (CD) $20, plus $5 proc fee Actual cost, plus $10 proc fee Assigned by owning agency 1st offense 2nd offense Loss or damage to processing materials Other items Partial loss (piece missing) Inter-library loan material Equipment Restitution for repairable damage: Minimum: $0.25 Maximum: Assigned by owning agency Minimum: $0.25 Maximum: Repair cost, plus shipping & handling chgs Minimum: $0.25 Maximum: 3/4 lost/ruined fee Minimum% of lost/ruined fee Return equipment in drive-up drop: $10 fine (per item), plus warning $10 fine (per item), plus revocation of equipment privileges Current catalog price Printing fee (color) Fax fee Adhesive vinyl Postage to return Photocopy fee (color) Printing fee (grayscale) Replacement library card Photocopy charges Heat transfer vinyl Transfer tape 3D printing fee $2.00 Inter-library loan service: Assigned by owning agency Actual cost $.25 per copy $.10 per page $.25 per page $.50/page; $5 maximum $1 per 6" sq. $1.50 per 6" sq $.25 per 6" sq $.10 per gram; $1 minimum 254 $155 $225 $375/hr $115 -$140 + $35 each additional 15 minutes Alarm fees - permit: Residential - annual alarm permit Alarm fees - false: 1st - 3rd Certified Commercial - annual alarm permit Animal Services $95 Impound fees: $2 $25 $50 No Fee $50 $75 $100 $35/day $50/wk $125/yr $10/ea Normal towing charges for vehicles: 2nd impound of the same animal 3rd impound of the same animal 4th impound and all subsequent of same animal Adoption fee 1st impound $25 $60 $85 $115 Voluntary dog registration fee Rabies test Deceased animal pickup Release of ownership & pickup fee Sheltering fee Euthanasia fee (includes surrender & disposal) Live Traps Microchip Release of ownership fee $50 Refundable Deposit Fee, if in working order $15 $20/animal $45 $10/night/animal $65 $10 $75 $15/animal Alcohol permits Copies - paper Prohibited animals Permanent permit fee Scanner fee Deceased animal - remains disposal fee Home quarantine fee Shelter quarantine fee $25 $25 $100 $150 $500/year City Secretary $5 1/2 of State Fees Per Ordinance #719 Public records: $.10/page Other electronic media Personnel Overhead Audio cassette Paper - Oversized (11 X 17, etc) Speciality paper (color maps/$1 sq ft) CD DVD Diskette 1 3 $1/each $1/each $.50/each Actual cost Actual cost $15/hr 20% of personnel charge Body cam Dash cam 911 audio Accident reports Clearance Letter/Local Criminal History Report Offense report and/or copies: Postage/shipping Other Police reports Actual cost Actual cost Police 0.10/page after 10 pages $6 $4 $.10/page $10 $3 $1 Preservation Fee Vehicles up to 10,000 GVWR Vehicles 10,001 - 26,000 GVWR Vehicles over 26,000 GVWR (Heavy Duty) Solicitors permit Solicitors badge 4th - 5th 6th - 7th 8 or more Up to 25' - $20 Over 25' - $35 Over 10,000 lbs = $36.80 $21 Storage Fees (DAILY) Accidents requiring additional services (per accident) 255 Private party fees - Non-Resident: 1 zone, 50 people $375 /2hrs $5/Class - session - program $155/week - Resident $185/week - Non-Resident $40/day - Resident $50/day - Non-Resident $25/hr - Resident - $45/hr Non-Resident $50/hr - Resident - $70/hr - Non-Resident Recreation Center rentals during hours: Recreation Center rentals after hours - 2 HOUR minimum: Kidz Kamp - summer sessions (base) Kidz Kamp - holiday sessions (base) Gym rental - 1/2 court Gym rental - Full court Resident recreation pass (all ages) Non-resident recreation pass (all ages) ID card replacement Day Pass to Recreation Center Week Pass to Recreation Center Non-member program registration fee Kidz Kamp - Lunch $5/Lunch Kidz Kamp - Water $5/Bottle Kidz Kamp - Late pick-up - 1st Time PARKS FUND Recreation Parks & Recreation Fees: $15/yr under age 50, $10/yr 50+ $30/yr under age 50, $20/yr 50+ $5 $5 $10 Summer pass sales promotion Private party fees - Resident: 1 zone, 50 people Aerobic classes - daily Aerobic classes - monthly 10% discount if bought before Memorial Day $250 /2hrs /Residents Only $8/hr Aqua fit tickets 10 for $50 Business; special event & private swim clubs Entrance fees - senior adult exercise/lap swim Entrance fees - public swim non-resident = > Age 7 Entrance fees - public swim non-resident < = Age 6 Entrance fees - public swim resident > = Age 7 Entrance fees - public swim < = Age 6 Individual pass Family pass $270/27 hr $20/lane hr weekday/weekends) Aqua fit tickets 10 for $50 $7/4 -6 hrs $7/4-6 hrs $5/4-6 hrs $5/4-6 hrs $55/resident and $115 - non-resident (+ ID card if needed) $110/resident and $255 - non-resident (+ ID card if needed) Non-field facility usage Athletic practice facility/field reservation change gee Swim lessons - coach/train Swim lessons - private Swim lessons - semi-private Swim lessons - public Swim lessons - duo - private $40/hr/staff member $250/4 hrs + $50/additional hr $5 Aquatic Park $35 for 1/2 hr (non-resident $65 for 1/2 hr) $230 for 4 hrs (non-resident $260) $110/4 hr (non-resident - $140/4 hr) $65/4 hr (non-resident - $95/4 hr) $345/4 hr (non-resident $375/4 hr) Swim lessons - lifeguard $45 - Resident - $55 - Non-Resident $75 - Resident - $85 - Non-Resident $90 - Resident - $100 - Non-Resident $325/team/season $250/team/season $500/team/season Rec $70/team/season; Competitive $110/team/season $300/team/season Adult cornhole Adult volleyball Practice field lit Practice field unlit Soccer net installation $275/field/day $225/field/day $30/field Tournament maintenance crew Parks Pavilion Rentals: $75/5 hrs - Resident - $150/5 hrs - Non-Resident $75/5 hrs - Resident - $150/5 hrs - Non-Resident 1/2 court = $15/hr - full court @ $25/hr full court @ $25/hr $75/5 hrs - Resident - $150/5 hrs - Non-Resident Athletics $2/player/season - Admin $3/player/season - Game fields $5/player/season - Practice fields $10/player/season - Non-Resident Facility rentals - Usage user fee co-sponsored Practice rental rates - co-sponsored Practice rental rates - resident non-co-sponsored Practice rental rates - non-resident non-co-sponsored $5/person/season - Resident $20/person/season - Non-Resident $10/hr for unlit - $15/hr for lit $20/hr for unlit - $30/hr for lit $26/hr for unlit - $36/hr for lit Youth basketball - Winter Youth basketball - Summer Youth basketball - Miniball Youth volleyball Youth flag football Adult softball Adult kickball Adult basketball $100 - Resident - $110 - Non-Resident $90 - Resident - $100 - Non-Resident $50/hr - Resident - $70/hr - Non-Resident $10 after 15 minute Late - $1/minute after 30 minutes late Kidz Kamp - Late pick-up - 2nd Time +$10 initial, $20 after 15 minute Late - $1/min after 30 minutes late Kidz Kamp - Shirt $10/Shirt Kidz Kamp - Counselor in Training $35/Week - Resident - $45/Week - Non-Resident Meeting room rental fee Premium Pavilion Rental Kids Colony - Full Pavilion $150/5 hrs - Resident - $300/5 hrs - Non-Resident Standard Pavilion Rental (Perryman, Slay/Baker, Ridgepoint, Dave Cowan, Bill Allen & Friendship $50/5 hrs - Resident - $100/5 hrs - Non-Resident Ampitheater Rental Meeting room rental fee $50/hr - Resident - $70/hr - Non-Resident Premium Pavilion Rental Kids Colony - 1/2 Pavilion Court Rentals: Basketball court rental Volleyball court rental Youth sports user fees Gym rental Activity room rental Recreation Center building rental Premium Pavilion Rental - Lions Club $60/hr - Resident - $80/hr - Non-Resident $50/hr - Resident - $70/hr - Non-Resident $100/hr - Resident - $120/hr - Non-Resident Activity room rental (Government Center/Annex Facility)$30/hr - Resident - $50/hr - Non-Resident 256 Non-resident rental rates: Daddy Daughter Dance: Kids Chase by the Lake: Spring Eggstravaganza: Liberty By The Lake: Mother and Son Adventure Day Family Fright Night: American Heroes New Recreation Center - Room Rental - Resident (Library, Multi-purpose, card room)$50/hr New Recreation Center - Room Rental - Non - Resident (Library, Multi-purpose, card room)$75/hr $15 $50 $90 $15/hr $25/hr SPECIAL EVENTS FUND Special Events Revenues $40 $15 $12 $10 $9 $5 $10 $40 VIP 1 day VIP 2 day Advance tickets Day of event tickets Per couple Additional child Volleyball court rental Per couple Additional child 1st child 2nd child 3rd child Pavilion rental Pavillion rental cleanup deposit Pavilion rental entry Basketball 1/2 court rental Campsite late checkout fee Pavilion rental (5 hour block) $250 51 + cars = $10/car $25/hr $100/Resident - $200/Non-Resident $150/Resident - $250/Non-Resident TCPARD Site Supervisor for Rental TCPARD Custodial for Rental *(not always applicable) TCPARD Athletic Field Prep (if necessary) TCPARD Life Guard (number to be determined based on rental specifics) Daily Pass - Resident Daily Pass - Non-Resident Annual Pass - Resident - first car Annual Pass - Non-Resident - first car $20/hr $20/hr $30/hr $15/guard/hr LAKE PARKS FUND Stewart Creek Park Revenues $15 $15 $40 $75 Outdoor Volleyball Court Practice Field Five Star Field Five Star Trail/Common Area/Parking Lot Stewart Creek Park Amenities Aquatic Park (per pool) Free $35/Resident - $45/Non-Resident $25/night Annual Pass - Senior Resident - first car Annual Pass - Senior Non-Resident - first car Disabled Veteran (with proof) RV sites (includes entry) Tent sites (includes entry) Community Center - Large Room Community Center - Meeting Room $5/hr $5/hr $10/hr $20/hr $20/hr $20/amenity/hr $20/hr $10/hr $5/hr $10 $40 $175/hr (3hr minimum) New Recreation Center - Banquet Room Rental WITH kitchen - Resident $125/hr (3hr minimum) New Recreation Center - Banquet Room Rental No kitchen - Non-Resident $150/hr (3hr minimum) New Recreation Center - Banquet Room Rental WITH kitchen - Non-Resident Recreation Center 1/2 Gym Recreation Center Full Gym Recreation Center Activity Room Recreation Center Racquetball Court Park Pavilion $5/hr $10/hr $5/hr $5/hr $5/hr Outdoor Basketball Court Trip reservation fee up to 100 miles Trip reservation fee up to 150 miles Resident rental rates: Large activity room with kitchen (100 people maximum) Large activity room without kitchen (100 people maximum) $8/trip $10/trip $240 for first 3 hrs $60/hr each additional hr $200 for first 3 hrs $60/hr each additional hr New Recreation Center - Room Rental - additional room fee (Library, Multi-purpose, card room)$25/hr New Recreation Center - Banquet Room Rental No kitchen - Resident $100/hr (3hr minimum) Large activity room with kitchen (100 people maximum) Large activity room without kitchen $290 for first 3 hrs $70/hr each additional hr $250 for first 3 hrs Resident rate Non-resident rate Trip reservation fee up to 50 miles Day Pass Community Center Membership for Seniors: $10/yr $20/yr $2 $6/trip LISD Joint Use Fees 257 4 x $.05 x SF Savannah 1 x $.08 x SF 2 x $.08 x SF 3 x $.08 x SF 4 x $.08 x SF UTILITY FUND Utility Fees $20 See attached water rate schedule See attached sewer rate schedule Water & Sewer dollar amount reduced by 10% (enrollment required) $2.92/mo $4.00/mo for each account - residential $5.00/ERU/mo for each account - non-residential $20 $50 Connect fee/application fee Water service Wastewater service Veteran and Active Duty Water and Sewer Discount SRF Loan Drainage utility fees Disconnect/reconnect fees Reconnect fees - after hours 2 x $.08 x SF 3 x $.08 x SF 4 x $.08 x SF 5 x $.08 x SF (535.2 537) (522 - 528) (528 - 530.8) PARKS FUND Exhibit B Fee Schedule Poor Vegetation/Habitat Conditions (3:1 to 6:1) Woodlands 1 x $.012 x SF 2 x $.012 x SF 3 x $.012 x SF 4 x $.012 x SF Grasslands 1 x $.05 x SF 2 x $.05 x SF 3 x $.05 x SF Good Vegetation/Habitat 2 x $.012 x SF 3 x $.012 x SF 4 x $.012 x SF 5 x $.012 x SF 3 x $.05 x SF 4 x $.05 x SF 5 x $.05 x SF (522 - 528) 2 x $.05 x SF (528 - 530.8) (530.8 - 535.2) Vegetation/Habitat Conditions using the Corps PEA Flood Elevations Commercial master meter surcharge Hydrant meter deposit - water NSF checks Penalties - late payment Delinquent accounts Online or Automated Phone payment for Utility account Set meter trip charge for ill-equipped area Same day connection fee Missed reading fee $12.47/unit (after first unit) $2,000 $25 $0 Extension agreements available prior to day of disconnect. If extension agreement is failed, no further extensions for a period of 12 months. Limit of 2 extensions per calendar year. Must have pay history with less than 4 late payments during the preceding 12 months. Accounts with less than 12 months of payment history must have no more than 1 late payment in order to qualify for an extension. Cash/Credit/Money Order Only $1.25/transaction $30 $20 $30 Disconnect fees - after hours Transfer fees Administration fees (e.g. credit references, research on their accounts Check for leaks - allowed 3 free checks for a 6 month period, thereafter $25 each check Residential deposit water & sanitation for homeowners Residential deposit water & sanitation for renters Residential deposit water & sanitation for seniors 60 and over Commercial deposit water & sanitation Commercial irrigation deposit $50 $25 $20 $25 $75 or higher based on past history $150 or higher based on past history Deposit waived - or higher based on past history Average of the past 12 months billings of the premises or comparable business, whichever is higher $1,000 (530.8 - 535.2) (535.2 537) 4 x $.08 x SF 5 x $.08 x SF 6 x $.08 x SF (535.2 537) (530.8 - 535.2) Excellent Vegetation/Habitat 3 x $.012 x SF 4 x $.012 x SF 5 x $.012 x SF 6 x $.012 x SF 3 x $.05 x SF 4 x $.05 x SF 5 x $.05 x SF 6 x $.05 x SF 3 x $.08 x SF (522 - 528) (528 - 530.8) ≥ ≥ ≥ ≥ ≥ ≥ 258 Revised by: C. De Los Santos 09-2024 Commodity rate (per thousand gallons) Residential (over 2,000 gal) Commercial (over 2,000 gal) 7.16 9.65 Rate 34.12 41.47 56.13 92.86 136.91 239.73 386.61 989.72 2,533.64 6,486.13 Meter size (inches 5/8 3/4 1 1 1/2 2 3 4 6 8 10 11.57 2,001 - 15,000 15,001 - 25,000 25,001 - 40,000 40,001 and over Zone 5 Water Rates 9.31 11.13 11.79 12.80 2,001 - 15,000 15,001 - 25,000 25,001 - 40,000 40,001 and over SEWER RATES (0% increase) 2024 - 2025 Outside City 25,001 - 40,000 8.32 3/4 8 10 Rate 35.21 46.70 66.18 128.44 214.13 330.86 515.64 1,160.18 2,610.47 5,873.62 Commodity rate (per thousand gallons) 7.97 9.91 10.55 1 1/2 2 3 4 6 Inside City Meter size (inches Rate 5/8 23.47 3/4 1 15,001 - 25,000 6.63 25,001 - 40,000 7.08 40,001 and over 7.71 10 3,915.77 Commodity rate (per thousand gallons) 2,001 - 15,000 5.31 22.74 1 1/2 85.64 2 142.72 3 220.64 4 343.77 6 773.48 8 1,740.34 27.61 1 37.41 1 1/2 61.91 7.86 2,001 - 15,000 6.55 40,001 and over Commercial (over 2,000 gal)6.45 2 91.23 3 159.82 4 257.72 6 659.82 8 1,689.10 10 4,324.11 Commodity rate (per thousand gallons) Residential (over 2,000 gal)4.78 Meter size (inches Rate 5/8 15,001 - 25,000 8.94 Inside City 44.13 WATER RATES (0% increase) 2024 - 2025 Outside City Meter size (inches 5/8 3/4 1 31.12 259 Agenda Item No:6.1 CITY COUNCIL Agenda Item Report Meeting Date: September 3, 2024 Submitted by: Kimberly Thompson Submitting Department: City Secretary Item Type: Discussion Agenda Section: Subject: A. Council shall convene into a closed executive session pursuant to Sections 551.071 and 551.072 of the Texas Government Code to deliberate regarding purchase, exchange, lease or value of real property and to seek legal advice from the city attorney regarding Blue Sky Sports Center, L.P. matter. B. Council shall convene into a closed executive session pursuant to Sections 551.071 and 551.087 of the Texas Government Code to deliberate regarding commercial or financial information the Council has received from a business prospect(s), and to deliberate the offer of a financial or other incentive to a business prospect(s), and to seek legal advice from the city attorney regarding Beach and Tennis Club matter. C. Council shall convene into a closed executive session pursuant to Section 551.087 of the Texas Government Code to deliberate commercial or financial information the Council has received from a business prospect, and to deliberate the offer of a financial or other incentive to a business prospect – The Billingsley Company related entity. D. Council shall convene into a closed executive session pursuant to Section 551.072 of the Texas Government Code to deliberate regarding purchase, exchange, lease or value of real property – Overlake Drive. E. 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). F. 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 City Manager. Suggested Action: Attachments: 260 Agenda Item No:7.1 CITY COUNCIL Agenda Item Report Meeting Date: September 3, 2024 Submitted by: Kimberly Thompson Submitting Department: City Secretary Item Type: Discussion Agenda Section: Subject: A. Any action as a result of executive session regarding regarding purchase, exchange, lease or value of real property and to seek legal advice from the city attorney regarding Blue Sky Sports Center, L.P. matter. B. Any action as a result of executive session regarding commercial or financial information the Council has received from a business prospect, and to deliberate the offer of a financial or other incentive to a business prospect, and to seek legal advice from the city attorney regarding Beach and Tennis Club matter. C. Any action as a result of executive session regarding commercial or financial information the Council has received from a business prospect, and to deliberate the offer of a financial or other incentive to a business prospect – The Billingsley Company related entity. D. Any action as a result of executive session regarding purchase, exchange, lease or value of real property – Overlake Drive. E. 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 to deliberate the offer of a financial or other incentive to a business prospect(s). F. Any action as a result of executive session regarding the evaluation, reassignment, duties, discipline, or dismissal of the City Manager. Suggested Action: Attachments: 261